S L2) o’ UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION
IX 75 Hawthorne Street San Francisco, CA 941O539O1 SEP 152011 Colleen Cripps Administrator Nevada Division of Environmental Protection 901 South Stewart Street Carson City, Nevada 89701 Dear Ms. Cripps: I am pleased to enclose

a signed copy of the updated delegation agreement between the Nevada Division of Environmental Protection (NDEP) and the U.S. Environmental Protection Agency which authorizes NDEP to implement the Prevention
of Significant Deterioration (PSD) provisions of 40 CFR 52.21, asin effect on August
2, 2010. The agreement

is effective immediately. Please call meor have your staff contact Gerardo Rios at (415) 972-3974
or rios.gerardo@epa.gov

if you have any questions. Enclosure Sincerely, cc: Larry Kennedy, Chief, Bureau of Air Pollution Control, NDEP Rob Bamford, Chief, Bureau of Air Quality Planning, NDEP Djrector, Air Division
Printed on Rerycled PaperAgreement for Delegation
of the Federal Prevention
of Significant Deterioration (PSD) Program by the United States Environmental Protection Agency, Region

9 tothe Nevada Division of Environmental Protection This agreementsetsforththe termsand conditions according
towhich the Nevada Division of Environmental Protection (NDEP) agreesto implement and enforce the federal PSD regulations foundin40CFR52.21 (effective August 2,2010). See75FR 31514, June 3,2010. I. Introduction The NDEP has adopted by reference the federal PSD regulations foundin40CFR 52.21,asin effect onAugust
2,2010. See subsectionS
of section

1ofLCB FileNo. T009-1

1:NAC 445B.22 1(5).These provisions shall hereafter be referred toasthe“State PSD regulations.” IL Legal Authority A. Pursuant
to40CFR 52.21(u), theU.S. Environmental Protection Agency (EPA) may delegatetoaStatefullorpartial responsibility
for conducting newsourcereview pursuant
to thefederal PSD regulations foundin40CFR 52.21. B.As discussed above, the NDEP has adopted by reference thefederal PSD regulations found in40CFR 52.21, asineffect on August
2,2010. See subsection

5of section

1ofLCB File No. T009-1

1:NAC 445B.221(5). C. The NDEP andEPA agreethat requirements

inPSD permits issued under the authority of NAC 445B.22 1(5)are federally enforceable requirements. III. Scope of Delegation A. Pursuant
to40CFR52.2 1(u),EPA hereby delegates
totheNDEP full responsibility
for implementing and enforcing thefederal PSD regulations forall sourceslocatedinthe State of Nevada under NDEP jurisdiction, subject tothe termsand conditions ofthis Delegation Agreement. B.The NDEP’s delegation
to implement and enforce the federal PSD regulations under this Delegation Agreement doesnotextendtosourcesoractivities locatedin Indian Country,
asdefined in18 U.S.C.1151. Consistent with previous federal program approvals
or delegations, EPAwill continue
to implement thefederal PSD program
in Indian Country in Nevada, because NDEPdidnot adequately demonstrate
its authority oversourcesand activities located within the exterior boundaries
of Indian reservations andinother areasof Indian Countiy. C.TheEPA Administrator has delegated
tothe Director of Region 9’sAir Division, the authority
to delegate thefederal PSD regulations

to anyStateorlocal agency.The State orlocal agencythat receives delegation from EPA Region

9doesnothavethe authority under thefederal Clean Air Acttofurther delegate thefederal PSD regulations. IV. Requirements

1

## A. The responsibility

for implementing the federal PSD program for all regulated sources as provided by this Delegation Agreement rests with the Chiefs of the NDEP’s Bureaus of Air Pollution Control and Air Quality Planning. EPA is relying on the technical and programmatic expertise of the Bureaus of Air Pollution Control and Air Quality Planning in the implementation

of this Delegation Agreement
on the NDEP’s behalf. All applicability determinations under this Delegation Agreement will be made by the Chief of the Bureau of Air Pollution Control, the Chief of the Bureau of Air Quality Planning or a higher level manager within the NDEP. In no event will an applicability

determination

be made at a level lower than Bureau Chief. B. The NDEP will ensure that there are adequate resources and trained personnel within the Bureaus of Air Pollution Control and Air Quality Planning
to implement
an effective PSD permit program. As requested, EPA will provide technical assistance related to the federal PSD requirements, including without limitation, PSD applicability determinations, Best Available Control Technology (BACT) determinations,
air quality monitoring network design, and modeling procedures. C. Where the rules or policies of the NDEP are more stringent than the federal PSD program, the NDEP may elect to include such requirements

in the PSD permit along with the EPA requirements. D. If both
a state or local regulation and a federal regulation apply to the same source, both must be complied with, regardless of whether one is more stringent than the other, subject to the requirements
of section 116 of the Clean Air Act. E. The NDEP will follow all PSD policy, guidance, and determinations issued by EPA for implementing the federal PSD program
as provided
in this Delegation Agreement. EPA will provide the NDEP with copies of EPA policies, guidance, and determinations through the Region

7 NSR database and/or hard copies where appropriate. Where no current EPA policy or guidance clearly covers

a specific situation, the NDEP shall consult with the EPA, Region
9, Air Division, Permits Office, on its proposed interpretation
of the EPA regulations. F. The NDEP will at no time grant
a waiver to the requirements
of 40 CFR 52.21 or to the requirements
of an issued PSD permit. G. The NDEP shall consult with the appropriate State and local agency primarily responsible for managing land use as provided
in 40 CFR 52.21 (u)(2)(i) prior to making any preliminary

or final determination under this Delegation Agreement. H. For federal PSD permits the NDEP shall: 1. Within

5 working days of receipt of a PSD permit application, notif’ the U.S. Fish and Wildlife Service (FWS) of the permit application, and provide

a copy of the permit application

if requested. 2. Notify applicants of the potential need for consultation between EPA and FWS if the project may affect an endangered species. 3. Refrain from issuing

a final PSD permit until EPA has notified the NDEP that EPA 2has satisfied its obligations,

if any, under the ESA and/or the Magnuson-Stevens
Act. V. Permit Issuance, Modification, and Appeals A. All permits issued by the NDEP under this Delegation Agreement shall indicate that an *appeal to the EPA Environmental Appeals Board (EAB)
is available pursuant
to 40 CFR part 124. B. The provisions

in 40 CFR 124.19 shall apply to all appeals to the EAB on PSD permits issued by the NDEP under this Delegation Agreement. For purposes of implementing
the federal permit appeal provisions under this delegation,

if there is a public comment requesting

a change in a preliminary determination

or proposed permit condition, the final permit issued by the NDEP
is required
to state that for federal PSD purposes and in accordance with 40 CFR 124.15 and 124.19: 1. The effective date of the permit
is 30 days after service of notice to the applicant and commenters
of the final decision
to issue, modify, or revoke and reissue the permit, unless review
is requested on the permit under 40 CFR 124.19 within the 30 day period. 2. If an appeal
is made to the EAB, the effective date of the permit
is suspended until such time asthe appeal
is resolved. C. A PSD permit (or a portion of aPSD permit) for a change to a facility that is a major modification under the State PSD regulations but not the federal PSD regulations shall not be appealable

to the EPA EAB. D. Major modifications

to existing PSD permits, except for administrative amendments, shall be processed

in accordance with all of the substantive and procedural requirements applicable

to new PSD permits. E. Failure by the NDEP to comply with the requirements

of 40 CFR part 124 related to PSD permits and this Section V. of the Delegation Agreement shall render the subject permit invalid for federal PSD purposes. VI. Enforcement A. In all cases, EPA retains authority pursuant
to sections 113 and 167 of the Clean Air Act with respect to sources that are subject to the federal PSD requirements, including federal PSD permits issued by the NDEP. B. In delegated programs, the role of the State is that of primary enforcer or “front line” agency in program implementation. However, EPA will initiate an enforcement action, as appropriate, under the following circumstances: 1. At the State’s request; 2. If a State agency action
is determined

to be inadequate,

orthe State agency fails to carry out action in a timely or appropriate manner; and/or 33. As part of EPA’s role established

in the collaborative planning process, which includes those situations where national, regional,
or sector initiatives warrant an EPA lead. C. PSD enforcement actions under this Delegation Agreement will be undertaken
by qualified inspectors
or trained enforcement staff in NDEP’s offices. VII. EPA And NDEP Communications A. The NDEP shall submit to EPA copies of the following documents, within the time frames indicated, for sources or activities subject to this Delegation Agreement: Action Submittal
to EPA Time frame Receipt of PSD permit application Copy of application and Within ten working days after cover letter receipt Completeness determination

or Copy of letter to Within ten working days after letter of deficiencies applicant signature Transmittal

to Federal Land Copy of letter Within ten working days after Manager (FLM) of PSD application

signature Receipt of comments from FLM Forward comment letter Within ten working days of receipt Preliminary determination, Copy of technical review, Within five working days after proposed PSD permit, public proposed PSD permit, completion
of preliminary notice

and public notice determination Public notice of hearing (see Copy of technical review, Within five working days after 52.21 (u)(2)(ii)) proposed PSD permit, completion
of preliminary and public notice determination Receipt of comments from public Copy of public comment Within ten working days of the letter(s)

close of the public comment period Final determination, PSD Copy of final Within five working days after permit and transmittal letter determination, PSD final signature on PSD permit permit and transmittal letter BACT determination submittal Electronic submittal of Within 30 working days of final to RACT/BACT/ LAER required information signature on PSD permit Clearinghouse B. The NDEP and EPA should communicate sufficiently
to guarantee that each is fully informed and current regarding interpretation
of federal PSD regulations (including any unique questions about PSD applicability). Any records or reports relating to PSD permitting
or compliance with PSD requirements that are provided
to or otherwise obtained by the NDEP and are not identified
in the Table in Section Vll.A. above should be made available
to EPA upon request. C. The NDEP will ensure that all relevant source information, notifications and reports are entered into the EPA AIRS/AFS national database system in order to meet its record keeping 4and reporting requirements.

In addition
to the National Minimal Data Requirements (MDRs) (attached), the NDEP shall enter the following information

or activities: 1. The Air Program Code for PSD; 2. The date the PSD permit
is issued or modified; 3. The final effective date of the PSD permit (or modified permit); 4. The date that the new source or modification begins construction; and 5. The date that the new source or modification begins operation. D. Correspondence from EPA to the NDEP will be sent to: Chief, Bureau of Air Pollution Control Nevada Division of Environmental Protection 901 South Stewart Street, Suite 4001 Carson City, Nevada 89701 Correspondence from the NDEP to EPA will be sent to: Chief, Permits Office, Air Division (AIR-3) USEPA, Region

9 75 Hawthorne Street San Francisco, CA 94105 VIII. Future EPA Regulation Revisions A. The NDEP’s delegation
to implement and enforce the federal PSD regulations does not extend torevisions
to 40 CFR 52.21 that occur, orhave occurred, after August
2, 2010. B. A new request for delegation will be required for any changes to 40 CFR Part 52.21 promulgated after August
2, 2010. Implementation and enforcement
of newor revised requirements after August
2, 2010 will remain the sole responsibility
of EPA until this Delegation Agreement

is revised. IX. Administrative A. This delegation agreement supersedes the previously delegated authority contained
in the October 19, 2004 Delegation Agreement with the NDEP from the Director of Region 9’s Air Division. B. If, after consultation with the NDEP, EPA makes anyof the following determinations, this delegation maybe revoked
in whole orin part. Any such revocation shall be effective
asof the date specified
in a Notice of Revocation. 1. The NDEP’s legal authority, rules and regulations, and/or procedures for implementing

or enforcing the federal PSD requirements

as provided
in this Delegation Agreement are inadequate; 2. The NDEP
is not adequately implementing

or enforcing the federal PSD program;
or 53. The NDEP has not implemented the requirements

or guidance with respect to a specific permit in accordance with the terms and conditions
of this delegation, the requirements
of 40 CFR 52.21, 40 CFR 124, or the Clean Air Act. C. In the event that NDEP
is unwilling
or unable to implement
or enforce the federal PSD regulations

as provided
in this Delegation Agreement with respect to a source or activity subject to the federal PSD regulations, the NDEP will immediately notify the Director of the Air Division and the Chief of the Air Divisions Permit Office. Failure to notifS’ the Director of the Air Division and the Chief of the Air Divisio&s Permits Office does not preclude EPA from exercising
its enforcement authority. D. In the event that EPA or the NDEP regulations
or policies change, this delegation shall either be amended
to ensure the continued implementation

of EPA’s PSD regulations

or the delegation shall be revoked. X. Signatures On behalf of the Environmental Protection Agency,

I grant full delegation of the federal PSD program, 40 CFR 52.21, to the NDEP pursuant
to the terms and conditions
of this delegation agreement and the requirements
of the Clean Air Act. 

# Date:

/1 

# )

I f jJ/17 

# %/7z Deborah Jordan Director, Air Division Environmental Protection Agency Region

9 On behalf of the State of Nevada Division of Environmental Protection

I accept full delegation of the federal Prevention
of Significant Deterioration program, 40 CFR 52.21, pursuant
to the terms and conditions
of this delegation agreement and the requireme

s oft
e Cl Air Act. Date_____________ ______________________ Colleen Cripps, Ph.D. Administrator Nevada Division of Environmental Protection 6