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Federal Register / Vol. 86, No. 117 / Tuesday, June 22, 2021 / Proposed Rules
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maintain records for a minimum of five years. As an alternative to the inspection, repair, and recordkeeping provisions, XII.K.4. allows owners and operators to inspect, repair, and document cover and closed vent systems in accordance with the LDAR
program in Section XII.L. Section XII.K.5. allows owners and operators to comply with emissions, inspections, repair, and recordkeeping provisions of an NSPS in lieu of Sections XII.K.1. and XII.K.4.
We propose to find that the provisions in the new Section XII.K. strengthen the SIP and meet CAA and RACT
requirements.
vii Section XII.L
Section XII.L. establishes a new leak detection and repair LDAR program for well production facilities and natural gas compressor stations in the DMNFR
Area.
This program, which we are now reviewing for approval into the SIP, took effect under state law beginning June 30, 2018. Under the LDAR program, owners or operators of natural gas compressor stations must inspect components for leaks using an approved instrument monitoring method AIMM at least quarterly.48 As defined in new section XII.B.3, AIMM means an infra-red camera, EPA Method 21, or another instrument based monitoring method or program that is approved in accordance with Section XII.L.8, discussed below. Initial inspections for leaks from components at natural gas compressor stations constructed on or after June 30, 2018 must be conducted no later than 90 days after the facility commences operation and at least quarterly thereafter.
Owners or operators at well production facilities with uncontrolled actual VOC emissions greater than or equal to one ton per year and less than or equal to six tons per year must inspect components for leaks using an AIMM at least annually. Well production facilities with uncontrolled VOC emissions greater than six tons per year must be inspected at least semiannually. Sections XII.L.2.c. and Section XII.L.2.d. set forth the criteria for determining inspection frequency and the timing of initial inspections. Initial inspections for well production facilities constructed on or after June 30, 2018 must be conducted no sooner than 15 days and no later than 30 days after the facility commences operation.
48 The SIP at Reg. 7, Section XII.E.3, already required an audio, visual, olfactory AVO
inspection required for storage tanks subject to control requirements. That requirement remains in effect.

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Monitoring components is not required under certain safety, accessibility, and feasibility circumstances described in Sections XII.L3.a. through c.
Section XII.L.4. establishes thresholds for leaks requiring repair under Section XII.L.5. The first attempt to repair an identified leak must be made within five working days of discovery and completed within 30 days unless one of the justifications for delay of repair in Sections XII.L.5.ai through iii applies. Leaks must be re-monitored within 15 working days of the repair.
Section XII.L.6. requires owners or operators to keep records to demonstrate compliance with the LDAR program and to maintain those records for a minimum of five years. Records include documentation of the initial approved AIMM inspection; facility identification information; leaks requiring repair and monitoring method used to determine presence of the leak; dates of first attempt to repair; dates and types of repairs; delayed repair lists; remonitoring dates and results; and lists of components designated as unsafe, difficult, or inaccessible to monitor.
Section XII.L.7. requires that each facilitys owner or operator submit an annual LDAR report to ensure that the data submitted to the Division accurately represents and summarizes the activities and effectiveness of the LDAR program. Reports should include the number of inspections, leaks requiring repair, leaking component type, and monitoring method by which the leaks were found.
Section XII.L.8. describes the process for review and approval of alternative AIMM for use as a part of the LDAR
program. The provisions allow the use of an alternative AIMM in lieu of or in combination with the EPA-approved AIMM i.e., infra-red cameras or Method 21, if certain conditions are met under Section XII.L.8.a. and if the Division approves the proposal.
Because the alternative AIMM
regulation allows the authorization, outside of the SIP approval process, of a leak detection method not specified in the submitted regulatory language or elsewhere in the SIP, we must consider whether it impermissibly allows the state agency to revise the SIP at its own discretion. Concerns with such rules, often known as directors discretion provisions, are discussed in detail in EPAs 2015 final rule responding to a petition for rulemaking concerning how SIPs treat excess emissions during periods of startup, shutdown, or malfunction SSM, often referred to as
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the SSM SIP Call rulemaking.49 As explained in the SSM SIP Call, the EPA
interprets the CAA as prohibiting SIP
provisions that include unlimited directors discretion to alter the SIP
emission limitations applicable to source. 50 But the SSM SIP Call also explains that there are circumstances in which a directors discretion provision may be consistent with the CAA and fully approvable, including when the directors discretion authority is adequately bounded such that the EPA
can ascertain in advance, at the time of approving the SIP provision, how the exercise of that discretion to alter the SIP emission limitations for a source could affect compliance with other CAA
requirements. 51 The EPA has long held this position. As explained in a 1996 EPA guidance document, it may be appropriate for states to approve equally stringent source-specific alternatives to SIP-approved requirements, when the SIP includes language to provide substantive criteria governing the States exercise of the alternative requirement authority. 52
Here, the EPAs view is that the State rule provides sufficient specific, substantive criteria to allow the EPA to evaluate the use of discretion in advance. Most significantly, under the provisions of Section XII.L.8, alternative AIMM must be capable of achieving emission reductions that are at least as effective as the emissions reductions achieved using an IR camera or Method 21. This requirement ensures that the State may not use its discretion to approve a method that is less effective than the SIP baseline.53 That is, in implementing the alternative AIMM
program according to its requirements, which we are proposing to make a part of the SIP, the State will be unable to weaken any SIP provisions.
49 Final action, State Implementation Plans:
Response to Petition for Rulemaking; Restatement and Update of EPAs SSM Policy Applicable to SIPs; Findings of Substantial Inadequacy; and SIP
Calls to Amend Provisions Applying to Excess Emissions During Periods of Startup, Shutdown and Malfunction, 80 FR 33840, 3391733924 June 12, 2015.
50 Id. at 33917.
51 Id. at 33918.
52 White Paper Number 2 for Improved Implementation of the Part 70 Operating Permits Program EPA OAQPS, March 5, 1996, Attachment B SIP Provisions For Establishing Alternative Requirements, available at https www.epa.gov/
sites/production/files/2015-08/documents/wtppr2.pdf.
53 See Final Rule, Revisions to Air Plan; Arizona;
Stationary Sources; New Source Review, 80 FR
67319, 67327 Nov. 2, 2015 approving rule as appropriately bounded because state agency does not have discretion to determine in which instances it will or wont apply the criteria in the regulation.

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