The Regional Administrator for EPA Region 9, Jared Blumenfeld, signed the following notice on August 30, 2012, and EPA is submitting it for publication in the Federal Register (FR). We have taken steps to ensure the accuracy of this version, but it is not the official version. Please refer to the official version in a forthcoming FR publication, which will appear on the Government Printing Office ’ s FDSys website ( https://fdsys.gpo.gov/fdsys/search/home.action ) and on Regulations.gov ( http://www.regulations.gov ) in Docket No. EPA

- R09

- OAR

- 2012

- 0 1 41

. **ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52**  **[ EPA**  **- R09**  **- OAR**  **- 20**  **12 -**  **0141 ; FRL**  **-**

**____ -** 

**_ ]**  **Approval and Promulgation of Implementation Plans; Revisions to**  **the Nevada**  **State Implementation Plan ;**  **Stationary Source Permits**
**AGENCY:** Environmental Protection Agency (EPA).
**ACTION:** Final rule.
**SUMMARY:** EPA is finalizing a limited approval and limited disapproval of revision s to the applicable s tate i mplementation
p lan for the State of Nevada
. Th e revision s include new or amended State rules governing applications for, and issuance of, permits for stationary sources, but not including review and permitting of major sources and major modifications under parts C and D of title I of the Clean Air Act
. EPA is taking this action under the Cle an Air Act obligation to take action on State submittals of revisions to state implementation plans. The intended effect of the limited approval and limited disapproval action is to update the applicable state implementation plan with current State rules w ith respect to permitting, and to set the stage for remedying d eficiencies in the permitting rules with respect to certain new or revised national ambient air quality standards
. T his limited disapproval action would not trigger sanctions under section 179 of the Clean Air Act butThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 2

does trigger an obligation on EPA to promulgate a Federal Implementation Plan unless the State of Nevada corrects the deficienc ies, and EPA approves the related plan revisions , within two years of the f inal action.
**EFFECTIVE DATE:** This rule is effective on [ **Insert date 30 days from the date of publication in the Federal Register**  ].
**DOCKET:** EPA has established docket number EPA

- R09

- OAR

- 2012

- 0141 for this action. The index to the docket for this action is available electronically at www.regulations.gov and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While all documents in the docket are listed in the index, some information may be publicly available only at the hard copy location (e.g., copyrighted material), and some may not be publicly available at either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the **FOR**
**FURTHER INFORMATION CONTACT** section.
**FOR FURTHER INFORMATION CO NTACT:**  Laura Yannayon, EPA Region IX, 75 Hawthorne Street (AIR

- 3), San Francisco, CA 94105, phone number (415) 972

- 3534, fax number (415) 947

- 3579, or by email at yannayon.laura@epa.gov
. **SUPPLEMENTARY INFORMATION:** Throughout this document, the terms

“ we, ” “ us ,” and “ our ” refer to EPA.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 3

**Table of Contents**
I. Proposed Action
A. Summary of Proposed Action and Description of SIP Submittals
B. Resolution of Prior Deficiencies
C. New Deficiencies
II. Public Comment on Proposed Action
III. Final Action
I V
. Statutory and Executive Order Reviews
**I. Proposed Action** 
A. Summary of Proposed Action and Description of SIP Submittals On June 28, 2012 (77 FR 38557), under section 110(k) of the Clean Air Act (CAA or "Act"), EPA proposed a limited approval and limited disapproval of revisions to the Nevada State Implementation Plan (SIP). The revisions, which were submitted by the Nevada Division of Environmental Protection (NDEP) on January 24, 2011, include certain new or amended State rules [i.e., certain sections of Nevada Administrative Code (NAC)] that govern applications for, a nd issuance of , permits for stationary sources [ a process referred to herein as “ New Source Review ” ( NSR ) and rules referred to herein as “NSR rules” ]
. 1

1 We note that the stationary source permitting rules that are the subject ofThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 4

NDEP’s January 24, 2011 submittal also includes a rescission of one definition from the existing SIP (the definition of “special mobile equipment”). As described in our June 28, 2012 proposed rule (77 FR at 38557), o n November 9, 2011, NDEP amended the January 2 4, 2011 submittal by replac ing an NSR rule (NAC 445B.3457) that had been submitted on January 24, 2011 as a temporary regulation with the version of the rule that had been adopted by the State Environmental Commission (SEC) as a permanent regulation
. On Ma y 21, 2012, NDEP further amended the January 24, 2011 submittal by submitt ing a small set of additional NSR

- related rules (and one statutory definition) , c ertain clarifications concerning the previously

- submitted NSR rules , and documentation supporting the selection of emissions

- based thresholds for triggering the public notice requirement s for draft permits for certain source modifications
. Table 1 below list s the rules (and one statutory definition) that were submitted by NDEP on January 24, 2011, November 9, 2011, and May 21 , 2012 and on which EPA is taking final limited approval and limited disapproval action in this

t oday's final rule are not intended to satisfy the requirements for pre

construction review and permitting of major sources or major modifications under part C (“Prevention of Significant Deterioration of air quality”) or part D (“Plan requirements for nonattainment are as”) of title I of the Clean Air Act.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 5

document. Table 1

– Submitted r ules (and statutory definition) governing NSR for stationary sources under NDEP jurisdiction Submitted rule Title Adoption Date Submittal Date NAC 445B.003 “Adjacent properties” defined. 11/03/93 01/ 24 / 11 NAC 445B.0035 “Administrative revision to a Class I operating permit” defined. 08/19/04 01/ 24 / 11

NAC 445B.007 “Affected state” defined. 11/03/93 01/ 24 / 11 NAC 445B.013 “Allowable emissions” defined. 10/04/05 01/ 24 / 11 NAC 445B.014 “Alteration” defined. 10/03/95 01/ 24 / 11 NAC 445B.016 “Alternative operating scenarios” defined. 10/03/95 01/ 24 / 11 NAC 445B.019 “Applicable requirement” defined. 0 6 / 17 / 10 01/ 24 / 11 NAC 445B.035 “Class I

- B application” defined. 10/03/95 01/ 24 / 11 NAC 445B.036 “Class I source” defined. 08/19/04 01/ 24 / 11 NAC 445B.037 “Class II source” defined. 0 6 / 17 /1 0 01/ 24 / 11 NAC 445B.038 “Class III source” defined. 0 6 / 17 /1 0 01/ 24 / 11 NAC 445B.0423 “Commence” defined. 03/18/08 05/21 /12 NAC 445B.044 “Construction” defined. 10/04/05 01/ 24 / 11 NAC 445B.046 “Contiguous property” defined. 09/16/76 01/ 24 / 11 NAC 445B.054 “Dispersion technique” defined. 10/04/05 01/ 24 / 11
NAC 445B.064 “Excessive concentration” defined. 10/04/05 01/ 24 / 11 NAC 445B.066 “Existing stationary source” defined. 10/03/95 01/ 24 / 11 NAC 445B.068 “Facility” defined. 10/03/95 01/ 24 / 11 NAC 445B.069 “Federally enforceable” defined. 03 / 18 / 08 01/ 24 / 11
NAC 445B.070 “Federally enforceable emissions cap” defined. 11/03/93 01/ 24 / 11 NAC 445B.082 “General permit” defined. 10/03/95 01/ 24 / 11 NAC 445B.083 “Good engineering practice stack height” defined. 10/04/05 01/ 24 / 11This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 6

NAC 445B.087 “Increment” defined. 11/03/93 01/24 / 11 NAC 445B.093 “Major modification” defined. 08/19/04 01/ 24 / 11 NAC 445B.094 “Major source” defined. 05/10/01 01/ 24 / 11 NAC 445B.0945 “Major stationary source” defined. 08/19/04 01/ 24 / 11 NAC 445B.099 “Modification” defined. 10/03/95 01/24/11 NAC 445B.104 “Motor vehicle” defined. 05/10/01 01/ 24 / 11 NRS 485.050 “Motor vehicle” defined. As amended in 2003 05 / 21 /12

NAC 445B.107 “Nearby” defined. 10/04/05 01/ 24 / 11 NAC 445B.108 “New stationary source” defined. 10/03/95 01/ 24 / 11
NAC 445B.117 “Offset” defined. 10/03/95 01/ 24 / 11 NAC 445B.123 “Operating permit” defined. 06 /1 7 / 1 0 01/ 24 / 11 NAC 445B.124 “Operating permit to construct” defined. 11/19/02 01/24 / 11 NAC 445B.1345 “Plantwide applicability limitation” defined. 06 /1 7 / 1 0 01/ 24 / 11 NAC 445B.138 “Potential to emit” defined. 1 0/ 05 / 10 01/24 / 11 NAC 445B.142 “Prevention of significant deterioration of air quality” defined. 11/03/93 01/ 24 / 11

NAC 445B.147 “Program” defined. 11/03/93 01/ 24 / 11 NAC 445B.154 “Renewal of an operating permit” defined. 11/03/93 01/ 24 / 11 NAC 445B.156 “Responsible official” defined. 06 / 17 / 10 01/ 24 / 11 NAC 445B.157 “Revision of an operating permit” defined. 08/19/04 01/ 24 / 11 NAC 445B.179 “Special mobile equipment” defined. 10 / 05 /1 0 ( repealed ) 01/ 24 / 11

NAC 445B.187 “Stationary source” defined. 10 / 05 /1 0 01/ 24 / 11 NAC 445B.194 “Temporary source” defined. 05/10/01 01/ 24 / 11 NAC 445B.200 “Violation” defined. 11/03/93 05 / 21 / 12 NAC 445B.287 Operating permits: G eneral requirements; exception; restriction on transfers. 0 6 / 17 / 1 0 01/ 24 / 11

NAC 445B.287(2) [Provision addressing the operating permit requirements for certain 06/17/10 05 / 21 /12This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 7

types of Class I sources] NAC 445B.288 Operating permits: E xemptions from requirements; insignificant activities. 0 3 /1 8 /0 8 01/ 24 / 11

NAC 445B.295 Application: General requirements. 0 9 / 06 /0 6 01/24 / 11 NAC 445B.297 Application: S ubmission ; certification; additional information
. 0 3 / 0 8 /0 6 01/ 24 / 11

NAC 445B.298 Application: O fficial date of submittal. 0 6 /1 7 / 1 0 01/ 24 / 11
NAC 445B.305 Operating permits: I mposition of more stringent standards for emissions. 06 / 17 / 10 01/24 / 11

NAC 445B.308 Prerequisites and conditions for issuance of certain operating permits; compliance with applicable state implementation plan
. 0 3 / 18 /0 8 01 / 24 / 11

NAC 445B.310 Environmental evaluation: A pplicable sources and other subjects; exemption
. 09/06/06 01 / 24 / 11

NAC 445B.311 Environmental evaluation: Contents; consideration of good engineering practice stack height
. 1 0/0 5 / 1 0 01 / 24 / 11

NAC 445B.313 Method for determining heat input: C lass I sources. 1 0 / 05 / 1 0 01/ 24 / 11 NAC 445B.3135 Method for determining heat input: C lass II sources. 11/19/02 01/ 24 / 11 NAC 445B.314 Method for determining heat input: C lass III sources. 11/19/02 01/ 24 / 11 NAC 445B.315 Contents of operating permits: E xception for operating permits to construct; required conditions. 03 / 08 /0 6 01/ 24 / 11

NAC 445B.318 Operating permits: Requirement for each source; form of application ; issuance or denial; posting. 0 3 /0 8 /06 0 1/ 24 / 11

NAC 445B.319 Operating permits: 08/19/04 01/ 24 / 11This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 8

A dministrative amendment. NAC 445B.325 Operating permits: Termination, reopening and revision, revision, or revocation and reissuance. 06 / 17 / 10 01/ 24 / 11

NAC 445B.331 Request for change of location of emission unit. 09/06/06 0 1/ 24 / 11 NAC 445B.3361 General requirements. 0 6 / 17 / 1 0 0 1/ 24 / 11 NAC 445B.3363 Operating permit to construct: A pplication. 12 /0 9 /0 9 01 / 24 / 11
NAC 445B.33637 Operating permit to construct for approval of plantwide applicability limitation: Application. 08/19/04 01/ 24 / 11

NAC 445B.3364 Operating permit to construct: Action by Director on application; notice ; public comment and hearing
. 12 /0 9 /0 9 0 1/ 24 / 11

NAC 445B.3365 Operating permit to construct: Contents; noncompliance with conditions
. 0 3 /0 8 /06 01 / 24 / 11

NAC 445B.33656 Operating permit to construct for approval of plantwide applicability limitation: Contents; noncompliance with conditions
. 0 3 /0 8 /06 0 1/ 24 / 11

NAC 445B.3366 E xpiration and extension of operating permit to construct; expiration and renewal of plantwide applicability limitation. 09/06/06 01 / 24 / 11

NAC 445B.3368 A dditional requirements for application ; exception. 12 / 0 9/0 9 01/ 24 / 11 NAC 445B.3375 Class I

- B application: F iling requirement. 09/06/06 0 1/ 24 / 11 NAC 445B.3395 Action by Director on a pplication ; notice; public comment and hearing; objection by Administrator; expiration of permit
. 0 3 / 18 /0 8 0 1/ 24 / 11

NAC 445B.340 Prerequisites to issuance, revision or renewal of 0 3 / 18 / 0 8 01/ 24 / 11This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 9

permit. NAC 445B.342 Certain changes authorized without r evision of permit ; notification of authorized changes. 10/04/05 0 1/ 24 / 11

NAC 445B.3425 Minor revision of permit. 08/19/04 01/ 24 / 11 NAC 445B.344 Significant revision of permit. 11/19/02 01/ 24 / 11 NAC 445B.3441 Administrative revision of permit to incorporate conditions of certain permits to construct. 09/06/06 01 / 24 / 11

NAC 445B.3443 Renewal of permit. 11 / 12 /0 8 01/ 24 / 11 NAC 445B.3447 Class I general permit 11/19/02 05 / 21 /12 NAC 445B.3453 Application: G eneral requirements. 03 / 08 /0 6 01/ 24 / 11 NAC 445B.3457 Action by Director on a pplication ; notice; public comment and hearing; expiration of permit. 10 /0 5 / 11 1 1 / 09 / 11

NAC 445B.346 Required contents of permit. 10/03/95 01/ 24 / 11
NAC 445B.3465 Application for revision. 10/04/05 01/ 24 / 11 NAC 445B.3473 Renewal of permit. 11 / 12 /0 8 01/ 24 / 11 NAC 445B.3477 Class II general permit. 03 /1 8 /0 8 01/ 24 / 11 NAC 445B.3485 Application: G eneral requirements. 09/06/06 0 1/ 24 / 11 NAC 445B.3487 Action by Director on a pplication ; expiration of permit
. 09/06/06 0 1/ 24 / 11

NAC 445B.3489 Required content s of permit. 09/06/06 0 1/ 24 / 11 NAC 445B.3493 Application for revision. 09/18/01 01/ 24 / 11 NAC 445B.3497 Renewal of permit. 11 / 12 /0 8 01/ 24 / 11
In our proposed rule (77 FR 38557, at 38559) , we discuss ed the regulatory history of the Nevada SIP and identified the existing Nevada SIP rules governing NSR for stationary sources under NDEP jurisdiction (see table 2). Table 2

– Existing SIP rules govern ing NSR for stationaryThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 10

sources under NDEP jurisdiction Nevada Air Quality Regulations (NAQR) or Nevada Administrative Code (NAC) Fed. Reg. Citation and EPA Approval Date
N AQR article 1.36

- Commenced 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.42

– Construction 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.43

– Contiguous property. 43 FR 36932 ; (August 21, 1978) NAQR article 1.72

– Existing facility 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.104

– Major stationary source. 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.109

– Modification 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.111

– Motor vehicle 43 FR 36932 ; (August 21, 1978) NAC 445.559

– “Operating permit” defined 49 FR 11626 ; (March 27, 1984) NAQR article 1.182

– Special mobile equipment 43 FR 36932 ; (August 21, 1978) NAQR a rticle 1.187

- Stationary source. 43 FR 36932 ; (August 21, 1978) NAC 445.649

- “Violation” defined. 49 FR 11626 ; (March 27, 1984) NAQR a rticle 3.1.6 [“Application forms for requesting the issuance of either a registration certificate or an operating permit can be obtained from the Director.”) 43 FR 1341 ; (January 9, 1978)

NAC 445.704 Registration certificates and operating permits requir ed. 49 FR 11626 ; (March 27, 1984)
NAC 445.705 Exemptions. 49 FR 11626 ; (March 27, 1984) NAC 445.706(1) Application date; payment of fees. 49 FR 11626 ; (March 27, 1984) NAC 445.707 Registration certificates: P rerequisite; application; fee; issuance, denial; expiration. 49 FR 11626 ; (March 27, 1984)

NAC 445.712 Operating permits: P rerequisite; application; fee; issuance, denial; posting. 49 FR 11626 ; (March 27, 1984)This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 11

NAC 445.713 Operating permits: R enewal. 49 FR 11626 ; (March 27, 1984) NAC 445.714 Operating permits: R eplacement of lost or damaged permits. 49 FR 11626 ; (March 27, 1984)
NAC 445.715 Operating permits: R evocation
. 49 FR 11626 ; (March 27, 1984) NAC 445.716 Operating permits: Change of location. 49 FR 11626 ; (March 27, 1984) NAQR a rticle 13.1 (“General Provisions for the Review of New Sources”) , subsection 13.1.3(1) 46 FR 21758 ; (April 14, 1981)

NAQR a rticle 13.1 (“General Provisions for the Review of New Sources”) , subsections 13.1.4, 13.1.5, 13.1.6, and 13.1.7 40 FR 13306 ; (March 26, 1975)

NAQR a rticle 1 3.2 [applicability thresholds for environme ntal evaluations (EEs)] , subsections 13.2.3 and 13.2.4 47 FR 27070 ; (June 23, 1982)

NAQR a rticle 13 .3 [content requirements for EEs] , subsection 13.3.1, 13.3.1.1, 13.3.1.2. 2 47 FR 27070 ; (June 23, 1982)

We also describe d the previous version of the State's NSR rules that we disapproved. See 73 FR 20536 ; ( April 16, 2008). Our 2008 final disapproval of the previous version of the NSR rules provides the context for this rulemaking in that our evaluation of the re

- submitted NSR rules focused on changes the

2 N DEP’s NSR SIP retains certain nonattainment NSR provisions including the definition of the term, “lowest achievable emission rate” (LAER), and NAQR article 13.1.3(2) in the SIP. NAQR article 13.1.1 establishes an environmental evaluation (EE) requirement, and NAQR article 13.1.3(2) establishes the LAER requirement. LAER is defined to apply to applicants who are required to submit EEs, and such applicants are identified by emissions

based threshold values in article 13.2, 13.2.1, and 13.2.2, submitted on July 24, 1979 and approved on June 23, 1982 (47 FR 27070). Thus, the existing SIP definition for LAER, NAQR articles 13.1.1, 13.2, 13.2.1, and 13.2.2 must be retained in the SIP to properly interpret and apply the ma jor source nonattainment requirements in NAQR article 13.1.3(2).This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 12

State had made in response to the findings in our 2008 final rule. As discussed further below, in our proposed rule, we found that the State had adequately addressed all of the previously

identified deficiencies in the NSR rules but new deficiencies related to the new or revised PM 2.5 and Pb national ambient air quality standards ( NAAQS ) prevent us from proposing a full approval of the rules. Therefore, we proposed a limited appr oval and limited disapproval of the submitted NSR rules. We did so based also on our finding that, while the rules did not meet all of the applicable requirements, the rules would represent an overall strengthening of SIP by clarifying and enhancing the NS R permitting requirements.
B. Resolution of Prior Deficiencies In our June 28, 2012 proposed rule , we found that State had adopted rule revisions or provided sufficient explanation and documentation to fully address the 10 specific deficiencies that we found in the rules as set forth in our April 2008 final rule
. First, we concluded that new or amended rules submitted for approval, including NAC 445B.0423 (“Commence” defined), NAC 445B.069 (“Federally enforceable” defined) , NAC 445B.287, subsection (2) ( Provision addressing the operating permit requirements for certain types of Class I sources) , NRS 485.050This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 13

("Motor vehicle" defined), and NAC 445B.083 ( “Good engineering practice stack height” defined) adequately addressed th e deficiencies related to the use of undefined terms or incorrect citations, the rel i ance on rules or statutory provisions that ha d not been submitted for approval as part of the SIP, or the confusion caused by submittal of multiple version s of the same

ru le. Second, we concluded that NAC 445B.138 ("Potential to emit" defined), as amended, adequately addressed the deficiency in this definition related to the limits that qualify for treatment as part of a stationary source's d esign for the purposes of determining its potential to emit. Third, by amending NAC 445B.187 ("Stationary source" defined) to delete the exclusion for “special mobile equipment,” the State Environmental Commission (SEC) adequately addressed the deficiency related to the necessary breadth of the definition of “stationary source” for NSR purposes. Fourth, we concluded that amendments to NAC 445B.313 ( Method for determining heat input: Class I sources 3 ) adequately

3 EPA generally refers to stationary sources with potentials to emit 100 tons per year or more of criteria pollutants (those for which national ambient air quality standards have been promulgated, such as, e.g., ozone, carbon monoxide, and particulate matter) as “major sources” and such sources with potentials to emit less than 100 tons per year as “minor sources.” Generally, speaking, the NSR program adopted by the Nevada SEC relies on the term “class I” sources to refer to “major sources” and “class II” and “class III” sources to refer to “minor sources.” In Nevada’s NSR program, generally speaking ,This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 14

addressed the deficiency related to the use o f maximum heat input for applicability determination purposes with respect to combustion sources. Fifth, we concluded , based on NDEP's explanation, that NAC 445B.331 (“Request for change of location of emission unit”) need not be amended to address the deficiency that we had identified previously
. Sixth, we concluded that amendments to NAC 445B.3477 (“Class II general permit”) were adequate to resolve the deficiency related to public participation requirements for issuing such permits, and th at, based on NDEP's explanation, no further amendments in the rule were necessary. Seventh, we concluded that amendments to NAC 445B.311 (“ Environmental evaluation: Required information”) adequately addressed the deficiency related to EPA approval for the use of a modification of, or substitution for, a n EPA

- approved model specified in appendix W of 40 CFR part 51
. Eighth, we concluded that amendments to NAC 445B.3457 ( " Action by Director on application; notice; public comment and hearing; expiration of permit " ) adequately addressed the deficiencies related to public review of new or modified class

“class III” sources are non

- exempt sources with potentials to emit of less than 5 tons per year of criteria pollutants, while “class II” sources are those sources that are covered under the NSR rules but that are neither “class I” or “class III” sources.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 15

II sources , notification to the air pollution control agencies for Washoe County or Clark Cou nty for class II sources proposed to be constructed or modified in Washoe County or Clark County, respectively , and public participation for new or modified sources of lead with potential s to emit 5 tons per year or more . In so concluding, we found that t he emission

- based thresholds that the SEC has established in NAC 445B.3457 to identify class II permit revisions that are subject to the public participation requirement were acceptable under 40 CFR 51.161 ("Public availability of information") because we believe d that the emissions

- based thresholds represent ed well

- defined objective criteria and because we f ound that the thresholds established in NAC 445B.3457 were reasonably calculated to exclude from mandatory public participation only less environmental ly significant sources and modification s . In addition, w ith respect to public participation associated with permits for new class II sources and for class
II modifications , we note d that the SEC also revised NAC 445B.3457 to provide for notification to the public through means (a state website and mailing list) other than through the traditional newspaper notice. We concluded that the requirement to provide the required notice by “prominent advertisement” in 40 CFR 51.161(b)(3) for new or modified minor sources (otherThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 16

than synthetic minor sources) is media neutral and can be met by means other than, or in combination with, the traditional newspaper notice. 4 See Memorandum dated April 17, 2012 from Janet McCabe, Principal Deputy Assistant Administrator, EP A Office of Air and Radiation, to Regional Administrators, Regions 1

- 10, titled “Minor New Source Review Program Public Notice Requirements under 40 CFR 51.161(b)(3).” With respect to NAC 445B.3457, we concluded that NDEP's provision for notification throu gh a n Internet website designed to give general public notice and through a mailing list developed to include individuals that have requested to be included on such a list, with one exception, satisfie d the requirement to provide the public with notice thr ough “prominent advertisement” in the area affected. We believed that notification of proposed permit actions for one category of sources, synthetic minor sources, i.e., sources that have taken enforceable limitations to restrict their potential to emit be low major source thresholds, must be made through traditional means of notification (i.e., newspaper notice) and preferably, should be made through traditional and

4 As noted in footnote 3 , above, “minor sources” are sources that have the potential to emit regulated NSR pollutants in amounts that are less than the applicable major source thresholds. Synthetic minor sources are those sources that have the potential to emit regulated NSR pollutants at or above the major source thresholds, but that have taken enforceable limitations to restrict their potential to emit below such thresholds.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 17

electronic means on the grounds that such sources should be treated for public participation purposes as major sources for which such notice is required . See 40 CFR 51.166(q)(2)(iii). While NAC 445B.3457 does not provide for traditional newspaper notice of class II sources that constitute synthetic minor sources, we concluded that the deficiency in Nevada’s public notice requirements with respect to synthetic minor

sources was not significant due to the limited potential number of synthetic minor sources that might not be subject to traditional (newspaper) notice under the State's NSR rules
. Nonet heless, we recommend ed that the S EC amend the public notice regulations to ensure that the general public is notified of new synthetic minor sources by traditional (newspaper) means, at a minimum, or, preferabl y , in combination with electronic means. Ninth, we concluded that the deficiencies in the affirmative defense provision in NAC 445B.326 (“Operating permits: Assertion of emergency as affirmative defense to action for noncompliance”) were moot for the purposes of this rulemaking because NDEP did n ot include NAC 445B.326 in the revise set s of NSR rules submitted to EPA for action as a SIP revision
. Lastly, we concluded that the amendments to NAC 445B.308 ("Prerequisites and conditions for issuance of certain operatingThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 18

permits; compliance with appli cable state implementation plan") adequately addressed the deficiencies by appropriately limiting the Director's discretion to approve any permit for any source where the degree of emission limitation required is affected by that amount of the stack height as exceeds good engineering practice stack height or any other dispersion technique
. In conclusion, b ased on our point

- by

- point evaluation of the previous deficiencies in the previously

- sub mitted NSR rules , we f ound that Nevada ha d adequately addressed all of the previously

- identified deficiencies by submittal of appropriately amended rules and supporting documentation. Please see our June 28, 2012 proposed rule at pages 38560 to 38563 for additional discussion of our evaluation and conclusions concerning the resolution of the previously

- identified deficiencies in the NSR rules.
C. New Deficiencies While we believe d that Nevada ha d adequately addressed the previously

- identified deficiencies in the NSR rules , we found in our June 28, 2012 proposed rule that the State’s NSR rules fail to address certain new requirements that were not in effect in 2008 when EPA last took action on the m . Under 40 CFR 51.160, in connection with NSR, each SIP must set forth legally enforceable procedures that enable the StateThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 19

or local agency to determine whether the construction or modification of a facility, building, structure or installation or combination of these will result in , among other impacts, interference with attainment or maintenance of a nat ional standard in the state in which the proposed source (or modification) is located or in a neighboring State. In our June 28, 2012 proposed rule, we concluded that the NSR rules did not meet the requirements of 40 CFR 51.160 with respect to the PM 2.5 NA AQS and the lead (Pb) NAAQS. With respect to PM 2.5 , we recognized that NDEP had submitted "infrastructure " SIPs 5 to address the PM 2.5 NAAQS and that, in those SIPs, NDEP indicated that NSR requirements for the PM 2.5 NAAQS were to be met by evaluati ng new a nd modified sources for compliance with the PM 10 standard. At the time these infrastructure SIPs were submitted, EPA's policy allowed States to permit new or modified PM 2.5 sources using the PM 10 NSR program requirements as a surrogate for PM 2.5 . We also r ecognized that we did not take timely action on the PM 2.5 "infrastructure" SIP submittals, and, as a result of the passage of time, the "surrogate" policy has lapsed (since

5 "Infrastructure " SIPs refer to SIPs submitted in response to EPA's promulg ation of a new or revised NAAQS and include provisions necessary to comply with the SIP content requirements set forth in CAA section 110(a)(2), other than those arising from designation of any area within a state as "nonattainment" for the new or amended NAAQS.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 20

May 16, 2011). As a result, States must now evaluate PM 2.5 emissions from new or modified sources directly to determine whether such sources would violate the 24

- hour (35 μg/m 3 ) or annual (15 μg/m 3 ) PM 2.5 standards. See 40 CFR 51.166(a)(6)(i) and 73 FR 28321, at 28344 ; (May 16, 2008). The submitted NSR rules eval uated herein do not yet address PM 2.5 , and given the now current requirements for PM 2.5 and the lapse of the surrogate policy, we concluded in our proposed rule that we cannot now fully approve the submitted NSR rules. With respect to lead (Pb), we recogn ized that NDEP submitted an infrastructure SIP on October 12, 2011 to address the 2008 Pb NAAQS and that we have not yet taken action on it. Furthermore, we recognize that, at the time NDEP submitted the Pb "infrastructure" SIP, the deadline for States to submit the necessary NSR

- related changes to address the 2008 Pb NAAQS had not yet passed. Now, however, with the passage of time, the deadline for such NSR

- related changes has passed, and we must evaluate the submitted NSR requirements against the now

- curr ent NSR requirements. Thus, similar to the approach we are taking for PM 2.5 , we find that the submitted NSR rules do not address the new rolling 3

- month average Pb NAAQS (0.15 μg/m 3 ) and thus we concluded that we cannot now fully approve the submitted NSR rules. See 73 FR 66964, 67034

– 67041 ; (November 12, 2008).This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 21

Lastly, w e concluded in our proposed rule that the State Environmental Commission must revise the NSR rules to ensure protection of the PM 2.5 and Pb NAAQS in the issuance of permits for new or modi fied sources or EPA must promulgate a FIP within two years of final action. For more information about our evaluation concerning the new deficiencies, please see the June 28, 2012 proposed rule at pages 38563

- 38564
. **II. Public Comment on Proposed Action**
E PA’s proposed action provided a 30

- day public comment period. During this period, we received one comment letter, a letter from the Nevada Division of Environmental Protection (NDEP), dated July 27, 2012. In the July 27, 2012 letter, NDEP expresses general support for EPA's limited ap proval of the updated NSR rules noting that it results in a significant update of the permitting provisions in Nevada applicable SIP. EPA appreciates NDEP's significant efforts to fully address the deficiencies EPA identified i n the previous submittals
. **I II**  **. Final**  **Action** No comments were submitted that change our assessment of the rules as described in our proposed action. Therefore,
p ursuant to section s 110(k) and 301(a) of the C lean Air Act , and for the reasons provided above and in our proposed rule , EPA isThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 22

finalizing a li mited approval and limited disapproval of revisions to the Nevada SIP that govern applications for, and issuance of, permits for stationary sources under the jurisdiction of the Nevada Division of Environmen tal Protection , excluding review and permitting of major sources and major modifications under parts C and D of title I of the Clean Air Act. Specifically, EPA is finalizing limited approval and limited disapproval of the new or amended sections of the Nev ada Administrative Code (and one section of the Nevada Revised
Statutes ) listed in table 1 above as a revision to the Nevada
SIP
. EPA is taking this action because, although we find that the new or amended rules meet most of the applicable requirements for such NSR programs and that the SIP revisions improve the existing SIP, we have also found certain deficiencies that prevent full approval. Namely, the submitted NSR rules do not address the new or revised national ambient air quality standards for PM 2.5 and lead (Pb) and must be revised accordingly. The intended effect of th is limited approval and limited disapproval action is to update the applicable state implementation plan with current State rules with respect toThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 23

permitting , 6 and to set the stage for remedying deficiencies in the permitting rules with respect to new or revised national ambient air quality standards for PM 2.5 and Pb. T his limited dis approval action does not trigger mandatory sanctions under section 179 of the Clean Air Act because sanc tions apply to nonattainment areas and no areas within the State of Nevada have been designated as nonattainment for the national PM 2.5 or Pb standards. However, this limited disapproval action does trigger an obligation on EPA to promulgate a Federal Impl ementation Plan unless the State of Nevada corrects the deficienc ies , and EPA approves the related plan revisions within two years of th is final action
. **I V**  **. Statutor**  **y and Executive Order Reviews** A. Executive Order 12988, Regulatory Planning and Review The Office of Management and Budget (OMB) has exempted this regulatory action from Executive Order 128665, entitled “Regulatory Planning and Review.” B. Paperwork Reduction Act This action does not impose an information collection burden under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq . Burden is defined at 5 CFR 1320.3(b). C. Regulatory Reduction Act

6 Final approval of the rules (and statutory provision) in table 1 supersede s the rules listed in table 2, above, in the existing Nevada SIP.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 24

The Regulatory Flexibility Act (RFA) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to n otice and comment rulemaking requirements unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small not

- for

- profit enterprises, and small governmental jurisdictions. This rule will not have a significant impact on a substantial number of small entities because SIP approvals or disapprovals under section 110 of the Clean Air Act do not create any new requirements but simply approve or disapprove requirements that the State is already imposing. Therefore, because this limited approval/limited disapproval action does not create any new requirements, I certify that this action will not have a significant economic impact on a substantial number of small entities. Moreover, due to the nature of the Federal

State relationship under the Clean Air Act, preparation of flexibility analysis would constitute Federal inquiry into the economic reasonableness of State action. The Clean Air Act forbi ds EPA to base its actions concerning SIPs on such grounds. Union Electric Co., v. U.S. EPA , 427 U.S. 246, 255

- 66 (1976); 42 U.S.C. 7410(a)(2). D. Unfunded Mandates Reform ActThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 25

Under section 202 of the Unfunded Mandates Reform Act of 1995 (“Unfunded Mandat es Act”), signed into law on March 22, 1995, EPA must prepare a budgetary impact statement to accompany any proposed or final rule that includes a Federal mandate that may result in estimated costs to State, local, or tribal governments in the aggregate; o r to the private sector, of $100 million or more. Under section 205, EPA must select the most
cost

- effective and least burdensome alternative that achieves the objectives of the rule and is consistent with statutory requirements. Section 203 requires EPA t o establish a plan for informing and advising any small governments that may be significantly or uniquely impacted by the rule. EPA has determined that th is limited approval/limited disapproval action does not include a Federal mandate that may result in e stimated costs of $100 million or more to either State, local, or tribal governments in the aggregate, or to the private sector. This Federal action takes a limited
approv al/limited disapproval action on pre - existing requirements under State or local law, and imposes no new requirements. Accordingly, no additional costs to State, local, or tribal governments, or to the private sector, result from this action. E. Executive Order 13132, FederalismThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 26

Federalism (64 FR 43255, August 10, 1999) revokes and replaces Executive Orders 12612 (Federalism) and 12875 (Enhancing the Intergovernmental Partnership). Executive Order 13132 requires EPA to develop an accountable process to ensure “meaningful and timely input by State and local officials in the development of reg ulatory policies that have federalism implications.” “Policies that have federalism implications” is defined in the Executive Order to include regulations that have “substantial direct effects on the States, on the relationship between the national governm ent and the States, or on the distribution of power and responsibilities among the various levels of government.” Under Executive Order 13132, EPA may not issue a regulation that has federalism implications, that imposes substantial direct compliance costs , and that is not required by statute, unless the Federal government provides the funds necessary to pay the direct compliance costs incurred by State and local governments, or EPA consults with State and local officials early in the process of developing the proposed regulation. EPA also may not issue a regulation that has federalism implications and that preempts State law unless the Agency consults with State and local officials early in the process of developing the proposed regulation.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 27

This rule will n ot have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132, becaus e it merely takes a limited approval/limited disapproval action on State rule s implementing a Federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the Clean Air Act. Thus, the requirements o f section 6 of the Executive Order do not apply to this rule. F. Executive Order 13175, Coordination with Indian Tribal
Governments Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 9, 200 0), requires EPA to develop an accountable process to ensure “meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications.” This proposed rule does not have tribal implications, as specified in Ex ecutive Order 13175. It will not have substantial direct effects on tribal governments, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between theThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 28

Federal government and Indian tri bes. Thus, Executive Order 13175 does not apply to this rule. G. Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required under section 5

- 501 of the Executive Order has the potential to influence the regulation. This rule is not subject to Executive Order 13045, because it takes a limited approval/limited disapproval action on State rule s i mplementing a Federal standard. H. Executive Order 13211, Actions that Significantly Affect Energy Supply, Distribution, or Use This rule is not subject to Executive Order 13211, “Actions Concerning Regu lations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer and Advancement Act Section 12 of the National Technology Transfer and Advancement Act (NTTAA) of 1995 requires Federal agencies to evaluate existing technical standards when developing a new regulation. To comply with NTTAA, EPA must consider and useThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 2 9

“voluntary consensus standards” (VCS) if available and applicable when developing programs and policies unless doing so would be inconsistent with applicable law or otherwise impractical. EPA believes that VCS are inapplicable to this action. Today’s action does not require the public to perform activitie s conducive to the use of VCS.
J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low

- Income Population Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes federal executive policy on en vironmental justice. Its main provision directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and advers e human health or environmental effects of their programs, policies, and activities on minority populations and low

- income pop ulations in the United States.
EPA lacks the discretionary authority to address environmental justice in this rulemaking. In revi ewing SIP submissions, EPA's role is to approve or disapprove state choices, based on the criteria of the Clean Air Act.This document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 30

Accordingly, this action merely takes a limited approval/limited disapproval action on certain State requirements for inclusion into the SIP under section 110 of the Clean Air Act and will not in

- and

- of itself create any new requirements. Accordingly, it does not provide EPA with the discretionary authority to address, as appropriate, dispr oportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898. K. Congressional Review Act The Congressional Review Act, 5 U.S.C. section 801 et seq., as added by the Small Business Regula tory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register
. A major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a “major rule” as defined by 5 U.S.C. section 804(2). L. Petitions for Judicial ReviewThis document is a pre

- publication version, signed by Regional Administrator, Jared Blumenfeld on 8/30/2012. We have taken steps to ensure the accuracy of this version, but it is not the official version. 31

Under section 307(b)(1) of the Clean Air Act, petitions f or judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by [ **I nsert**  **date 60 days from date of publication of this document in the Federal Register**  ]. Filing a petition for reconsideration by the Admin istrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements (see section 307(b)(2)). **List of Subjects in 40 CFR Part 52** Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Lead, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides.

________________ ______________________ Dated: Jared Blumenfeld Regional Administrator, Region IX.