ADOPTED REGULATION OF THE STATE ENVIRONMENTAL COMMISSION LCB File No. R040-10 Effective July 22, 2010

EXPLANATION – Matter in italics is new; matter in brackets [ omitted material ] is material to be omitted.

AUTHORITY: §§1-32, NRS 445B.210.
A REGULATION relating to air pollution; repea ling provisions governin g Clean Air Mercury Rule operating permits to construct; and providing other matters properly relating thereto.

Section 1. NAC 445B.001 is hereby amended to read as follows: 445B.001 As used in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, unless the context otherwise requires , the words and term s defined in NAC 445B.002 to 445B.211, inclusive, have the meanings ascribed to them in those sections. Sec. 2. NAC 445B.019 is hereby amended to read as follows: 445B.019 “Applicable requirement” means, as applied to a stationary source: 1. Any standard or other relevant requirement: (a) Provided in NRS 445B.100 to 445B.640, inclusive, and NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, except for the st andards for am bient air es tablished in NAC 445B.22097; (b) Provided in the applicable implementati on plan approved or adopted by the EPA pursuant to 42 U.S.C. §§ 7401 to 7515, inclusive;

-- 1-- Adopted Regulation R040-10(c) For a hazardous air pollutant adopted pursuant to 42 U.S.C. § 7412, including any requirement regarding the prevention of accidental releases; (d) For a program to control acid rain a dopted pursuant to 42 U.S.C. §§ 7651 to 7651o, inclusive; (e) For enhanced monitoring or for complian ce certification adopted pursuant to 42 U.S.C. § 7413(a)(3) or 7661c(b); (f) For solid waste incineration units adopted pursuant to 42 U.S.C. § 7429; (g) For consumer and commercial products or tank vessels adopted pursuant to 42 U.S.C. § 7511b; and (h) For the protection of st ratospheric ozone adopted pursuant to 42 U.S.C. §§ 7671 to 7671q, inclusive, unless the Administrator determines th at such provisions are not required in an operating permit; 2. A new source performance standard adopted pursuant to 42 U.S.C. § 7411; 3. Any term or condition of any permit issued pursuant to the requirements of 42 U.S.C. §§ 7401 to 7515, inclusive, including provisions regarding the prevention of significant deterioration of air quality and new source review; and 4. Any national ambient air quality standard or requirement regarding increments or visibility adopted pursuant to 42 U.S.C. §§ 7470 to 7492, inclusive, as the standard applies to a temporary source for which the owner or opera tor has applied for and obtained an operating permit pursuant to NAC 445B.287 to 445B.3497, inclusive. Sec. 3. NAC 445B.037 is hereby amended to read as follows:

-- 2-- Adopted Regulation R040-10445B.037 “Class II source” means any stationa ry source which is not subject to the requirements of 42 U.S.C. §§ 7661 to 7661f, inclusiv e, but which is otherwise subject to the requirements of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. The term does not include a stationary source that is op erating under a Class III ope rating permit issued pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. Sec. 4. NAC 445B.038 is hereby amended to read as follows: 445B.038 “Class III source” means a stationary s ource which is subject to the requirements set forth in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, and: 1. Which emits or has the potential to emit, individually or in combination, a total of not more than 5 tons per year of PM 10 , NO x , SO 2 , VOC and H 2 S; 2. Which emits less than 1,000 pounds of lead per year; 3. Which is not subject to the requirements of 42 U.S.C. §§ 7661 to 7661f, inclusive; 4. Which does not exceed 750 horsepower and is not subject to the requirements of 40 C.F.R. Part 60 except for: (a) A stationary compression ignition internal combustion engine subject to Subpart IIII; or (b) A stationary spark ign ition internal combustion engine subject to Subpart JJJJ; 5. Which is not subject to the requirements of 40 C.F.R. Part 61; 6. Which is not subject to the requirements of 40 C.F.R. Part 63, except for a stationary reciprocating internal combustion engine subject to Subpart ZZZZ and which does not exceed 750 horsepower; 7. Which is not a temporary source; 8. Which is not located at or a part of another stationary source;

-- 3-- Adopted Regulation R040-109. Which does not operate a thermal unit that emits mercury, as defined in NAC 445B.3643; and 10. Whose owner or operator: (a) Is not seeking a limitation on emissions to av oid the requirements of 40 C.F.R. Part 63; or (b) Is not required to obtain an operating permit to operate th e stationary source solely to comply with NAC 445B.22037 relating to surface area disturbances. Sec. 5. NAC 445B.063 is hereby amended to read as follows: 445B.063 “Excess emissions” means any emission which exceeds any applicable emission limitation prescribed by NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, or that is contained in an operating perm it. The averaging time and test pr ocedures for determining excess emissions must be as specified in the relevant condition or conditions of the operating permit, except that this does not preclude the use, including the exclusive use, of any credible evidence or information relevant to the determination of whether a source would have been in compliance with the applicable requirements if the appropria te performance or compliance test or procedure had been performed to determine excess emissions. Sec. 6. NAC 445B.123 is hereby amended to read as follows: 445B.123 “Operating permit” has the mean ing ascribed to it in NRS 445B.145. Unless otherwise specifically stat ed, the term includes: 1. A Class I, a Class II and a Class III operating permit; 2. An operating permit to construct; and 3. A mercury operating permit to c onstruct, as defined in NAC 445B.3625
. [ ; and 4. A CAMR operating permit to constr uct, as defined in NAC 445B.3 713. ]

-- 4-- Adopted Regulation R040-10Sec. 7. NAC 445B.1345 is hereby amended to read as follows: 445B.1345 “Plantwide applicability limitation” means a plantwide applicability limitation as defined in 40 C.F.R. § 52.21(aa)(2)(v) that has been approved by the Director and authorized in an operating permit to construct pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. Sec. 8. NAC 445B.156 is hereby amended to read as follows: 445B.156 “Responsible official” means: 1. For a corporation: (a) A president; (b) A vice president in charge of a principal business function; (c) A secretary; (d) A treasurer; or (e) An authorized representativ e of such a person who is res ponsible for the overall operation of the facility and who is designated in writing by an officer of the corporation and approved in advance by the Director. 2. For a partnership or sole proprietorship, a general partner or the proprietor, respectively. 3. For a municipality or a state, federal or ot her public agency, a rankin g elected official or a principal executive officer, including, for a fede ral agency, a chief executive officer who has responsibility for the overall operations of a principal geographic unit of the agency. 4. For an affected source, the designated repr esentative or his altern ate, as defined in 42 U.S.C. § 7651a(26).

-- 5-- Adopted Regulation R040-10[ 5. For a mercury budget source, as defined in NAC 445B.3735, the me rcury designated representative, as defined in NAC 445B.3741, or his alternate. ] Sec. 9. NAC 445B.187 is hereby amended to read as follows: 445B.187 1. “Stationary source” means a ll buildings, structures, facilities and installations, including te mporary sources, which: (a) Belong to the same major industrial groupings described in the Standard Industrial Classification Manual , as incorporated by reference in NAC 445B.221; (b) Are located on one or more contiguous or adjacent properties; (c) Are owned or operated by the same person or by persons under common control; and (d) Emit or may emit any regulated air pollutant that is regulated under 42 U.S.C. §§ 7401 to 7671q, inclusive, or NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. 2. Contracted operations that support the primar y operations of the stationary source are part of the stationary source, except that tempor ary construction activit ies, including, without limitation, the construction of emission units, are not part of the stationary source. 3. The term does not include motor vehicles, special mobile equipment, nonroad engines and nonroad vehicles. Sec. 10. NAC 445B.190 is hereby amended to read as follows: 445B.190 “Stop order” means a wr itten notice by the Director se rved on a person or persons requiring such persons to cease the activity th at the Director, pursu ant to NAC 445B.277, has determined is in violation of any provision of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, an applicable requirement or any condition of an operating perm it. Sec. 11. NAC 445B.200 is hereby amended to read as follows:

-- 6-- Adopted Regulation R040-10445B.200 “Violation” means a failure to co mply with any of the provisions of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, any applicable re quirem ent or any condition of an operating permit. Sec. 12. NAC 445B.211 is hereby amended to read as follows: 445B.211 The abbreviations used in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, have the following m eanings:

BART ....................................................... Best available retrofit technology
Btu ............................................................ British thermal unit C.F.R. ....................................................... Code of Federal Regulations CO 2 ........................................................... carbon dioxide

 F .............................................................. degree Fahrenheit Hg ............................................................. mercury H 2 S ........................................................... hydrogen sulfide lb............................................................... pound NO ............................................................ nitric oxide NO x .......................................................... nitrogen oxides O 2 ............................................................. oxygen ppm........................................................... parts per million SO 2 ........................................................... sulfur dioxide VOC ......................................................... volatile organic compound

-- 7-- Adopted Regulation R040-10Sec. 13. NAC 445B.220 is hereby amended to read as follows: 445B.220 If any of the pr ovisions of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, or any application thereof to any person, thing or circum stance is held invalid, it is intended that such invalidity not affect the rema ining provisions, or their applic ation, that can be given effect without the invalid provision or application. Sec. 14. NAC 445B.22077 is hereby ame nded to read as follows: 445B.22077 Any portion of any affected facili ty not listed in NAC 445B.2208 must comply with the remaining port ions of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. Sec. 15. NAC 445B.221 is hereby amended to read as follows: 445B.221 1. Title 40 C.F.R. §§ 51.100(s) , 51.100(nn) and 51.301 and Appendix S of 40 C.F.R. Part 51 are hereby adopted by reference as they existed on July 1, 2009. 2. Title 40 C.F.R. § 51.165 is hereby adopt ed by reference as it existed on July 1, 2002. 3. Appendices M and W of 40 C.F.R. Part 51 are hereby adopted by reference as they existed on July 1, 2009. 4. Title 40 C.F.R. § 52.21 is hereby adopt ed by reference as it existed on July 1, 2009. 5. The following subparts of 40 C.F.R. Part 60 are hereby adopted by reference: (a) Subpart A, except §§ 60.4, 60.8(b)(2), 60.8(b )(3) and 60.11(e), as it existed on July 1, 2009; (b) Section 60.21 of Subpart B, as it existed on July 1, 2006; (c) Subparts C, Cb, Cc, Cd, Ce, D, Da, Db, Dc, E, Ea, Eb, Ec, F, G, H, I, J, K, Ka, Kb, L, M, N, Na, O, P, Q, R, S, T, U, V, W, X, Y, Z, AA, AAa, BB, CC, DD, EE, GG, HH, KK, LL, MM,

-- 8-- Adopted Regulation R040-10NN, PP, QQ, RR, SS, TT, UU, VV, VVa, WW, XX, BBB, DDD, FFF, GGG, GGGa, HHH, III, JJJ, KKK, LLL, NNN, OOO, PP P, QQQ, RRR, SSS, TTT, U UU, VVV, WWW, AAAA, CCCC, DDDD, EEEE, FFFF, IIII, JJJJ and KKKK as th ey existed on July 1, 2009; and (d) Subpart HHHH, except §§ 60.4105( b)(2), 60.4106, 60.4120 to 60.4142, inclusive, 60.4153(a) and (b) and 60.4176, as set forth in Volume 70 of the Federal Register at pages 28606 et seq., May 18, 2005, and the amendments to Subpart HHHH as set forth in Volume 71 of the Federal Register at pa ges 33388 et seq., June 9, 2006. 6. Appendices A, B and F of 40 C.F.R. Part 60 are hereby adopted by reference as they existed on July 1, 2009. 7. Subparts A, C, D, E, F, H, I, J, K, L, N, O, P, Q, R, T, V, W, Y, BB and FF of 40 C.F.R. Part 61 are hereby adopted by refere nce as they existed on July 1, 2009. 8. Appendix B of Title 40 C.F.R. Part 61 is hereby adopted by reference as it existed on July 1, 2009. 9. Subparts A, B, C, F, G, H, I, J, L, M, N, O, Q, R, S, T, U, W, X, Y, AA, BB, CC, DD, EE, GG, HH, II, JJ, KK, LL, MM, OO, PP, QQ, RR, SS, TT, UU, VV, WW, XX, YY, CCC, DDD, EEE, GGG, HHH, III, JJJ, LLL, MMM, NNN, OOO, PPP, Q QQ, RRR, TTT, UUU, VVV, XXX, AAAA, CCCC, D DDD, EEEE, FFFF, GGGG, HHHH, IIII, JJJJ, KKKK, MMMM, NNNN, OOOO, PPPP, QQQQ, RRRR, SSSS, TTTT, UUUU , VVVV, WWWW, XXXX, YYYY, ZZZZ, AAAAA, BB BBB, CCCCC, DDDDD, EEEEE, FFFFF, GGGGG, HHHHH, JJJJJ, KKKKK, LLLLL, MMMMM, NNNNN, PPPPP, QQQQQ, SSSSS, WWWWW, YYYYY, ZZZZZ, DDDDDD, EEEEEE, FFFFFF, G GGGGG, LLLLLL, MMMMMM, NNNNNN,

-- 9-- Adopted Regulation R040-10OOOOOO, PPPPPP, QQQQQQ, RRRR RR, SSSSSS and TTTTTT of 40 C.F.R. Part 63 are hereby adopted by reference as they existed on July 1, 2009. 10. Title 40 C.F.R. Part 72 is hereby adopted by reference as it existed on July 1, 2009. If the provisions of 40 C.F.R. Part 72 conflict with or are not included in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, and sections 2, 3 and 4 of LCB File No. R190-08, which was adopted by the State Environm ental Commissi on and was filed with th e Secretary of State on April 23, 2009, the provisions of 40 C.F.R. Part 72 apply. 11. Title 40 C.F.R. Part 76 is hereby adopted by reference as it existed on July 1, 2009. If the provisions of 40 C.F.R. Part 76 conflict with or are not included in NAC 445B.001 to [ 445B3791, ] 445B.3689, inclusive, and sections 2, 3 and 4 of LCB File No. R190-08, which was adopted by the State Environm en tal Commission and was filed w ith the Secretary of State on April 23, 2009, the provisions of 40 C.F.R. Part 76 apply. 12. Title 42 of the United States Code, sect ion 7412(b), List of Hazardous Air Pollutants, is hereby adopted by reference as it existed on October 1, 1993. 13. The Standard Industrial Classification Manual , 1987 edition, published by the United States Office of Management and Budget, is he reby adopted by reference. A copy of the manual may be obtained, free of charge, from the United States Department of Labor at the Internet address http://www.dol.gov

. 14. A copy of the publications which contai n the provisions adopted by reference in subsections 1 to 12, inclusive, may be obtained from the: (a) Division of State Library and Archives of the Department of Cultural Affairs for 10 cents
per page.

-- 10-- Adopted Regulation R040-10(b) Government Printing Office, free of charge, at the Internet address http://www.gpoaccess.gov/nara/index.html

. 15. The following standards of ASTM Inte rnational are hereby a dopted by reference: (a) ASTM D5504, “Standard Test Method fo r Determination of Sulfur Compounds in Natural Gas and Gaseous Fuels by Gas Chromato graphy and Chemiluminescence,” set forth in Volume 05.06 of the 2008 Annual Book of ASTM Standards. A copy of ASTM D5504 is available by mail from ASTM International, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania, 19428-2959, by telephone at ( 610) 832-9585 or at the Internet address http://www.astm.org, for the price of $37. (b) ASTM D2234 and D2234M, “Standard Practi ce for Collection of a Gross Sample of Coal,” set forth in Volume 05.06 of the 2008 Annual Book of ASTM Standards. A copy of ASTM D2234 and D2234M is available by mail from ASTM International, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania, 19428- 2959, by telephone at (610) 832-9585 or at the Internet address http://www.astm.org, for the price of $37. (c) ASTM D2013, “Standard Practice for Prepari ng Coal Samples for Analysis,” set forth in Volume 05.06 of the 2008 Annual Book of ASTM Standards. A copy of ASTM D2013 is available by mail from ASTM International, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania, 19428-2959, by telephone at ( 610) 832-9585 or at the Internet address http://www.astm.org, for the price of $43. (d) ASTM D6784, “Standard Test Method for El emental, Oxidized, Particle-Bound and Total Mercury in Flue Gas Generated from Coal-Fired Stationary S ources (Ontario Hydro Method),” set forth in Volume 11.07 of the 2008 Annual B ook of ASTM Standards. A copy of ASTM

-- 11-- Adopted Regulation R040-10D6784 is available by mail from ASTM Inte rnational, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania, 19428-2959, by telephone at (610) 832-9585 or at the Internet address http://www.astm.or g, for the price of $43. (e) ASTM D2015, “Standard Test Method for Gro ss Calorific Value of Coal and Coke by the Adiabatic Bomb Calorimeter,” dated April 10, 2000. A copy of ASTM D2015 is available for purchase at the IHS Standards Store, 15 Inve rness Way East, M/S A110B, Englewood, Colorado, 80112, or at the Internet a ddress http://globa l.ihs.com, for th e price of $52. (f) ASTM D3286, “Standard Test Method for Gro ss Calorific Value of Coal and Coke by the Isoperibol Bomb Calorimeter,” dated July 10, 1996. A copy of ASTM D3286 is available for purchase at the IHS Standards Store, 15 Inve rness Way East, M/S A110B, Englewood, Colorado, 80112, or at the Internet a ddress http://globa l.ihs.com, for th e price of $52. (g) ASTM D1989, “Standard Test Method for Gr oss Calorific Value of Coal and Coke by Microprocessor Controlled Isoperibol Calorime ters,” dated July 10, 1997. A copy of ASTM D1989 is available for purchase at the IHS Sta ndards Store, 15 Inverness Way East, M/S A110B, Englewood, Colorado, 80112, or at th e Internet address http://globa l.ihs.com, for the price of $52. 16. For the purposes of the provisions of 40 C.F.R. Parts 60, 61 and 63, adopted by reference pursuant to this sect ion, the Director may not approve alternate or equivalent test methods or alternative standards or work practices. 17. Except as otherwise provided in subsect ions 10 and 11, the provisions adopted by reference in this section supersed e the requirements of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, and sections 2, 3 and 4 of LCB File No. R190-08, which was adopted by

-- 12-- Adopted Regulation R040-10the State Environmental Commi ssion and was filed with the Secretary of State on April 23, 2009, for all stationary sources su bject to the provisions adopted by reference only if those requirements adopted by reference are more stringent. 18. For the purposes of this section, “administ rator” as used in the provisions of 40 C.F.R. Part 60, except Subpart B § 60.21 and S ubpart HHHH §§ 60.4101 to 60.4105, inclusive, 60.4107 to 60.4114, inclusive, 60.4151 to 60.4173, inclusive, and 60.4175, and Parts 61 and 63, adopted by reference pursuant to this section, means the Director. Sec. 16. NAC 445B.227 is hereby amended to read as follows: 445B.227 Except as otherwise provided in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, no person may: 1. Operate a stationary sour ce of air pollution unle ss the control equipment for air pollution which is required by applicable requirements or conditions of the pe rmit is installed and operating. 2. Disconnect, alter, modify or remove any of the control equipmen t for air pollution or modify any procedure required by an applicab le requirement or condition of the permit. Sec. 17. NAC 445B.232 is hereby amended to read as follows: 445B.232 1. Scheduled maintenance or testing or scheduled repairs which may result in excess emissions of regulated air po llutants prohibited by NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, must be approved in advance by the Director and perform ed during a time designated by the Director as being fa vorable for atmospheric ventilation. 2. Each owner or operator shall notify the Director of the proposed time and expected duration at least 30 days before any scheduled maintenance or testing which may result in excess

-- 13-- Adopted Regulation R040-10emissions of regulated air polluta nts prohibited by NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. The scheduled maintenance or test ing m ust not be conducted unless the scheduled maintenance or testing is appr oved pursuant to subsection 1. 3. Each owner or operator shall notify the Director of the proposed time and expected duration at least 24 hours before any scheduled repairs which may result in excess emissions of regulated air pollutants pr ohibited by NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. The scheduled repairs m ust not be conducted unless the scheduled repairs ar e approved pursuant to subsection 1. 4. Each owner or operator shall notify the Di rector of any excess emissions within 24 hours after any malfunction or upset of the process eq uipment or equipment fo r controlling pollution or during start-up or shutdown of that equipment. 5. Each owner or operator shall provide the Director, within 15 days after any malfunction, upset, start-up, shutdown or human error whic h results in excess emissions, sufficient information to enable the Director to determ ine the seriousness of the excess emissions. The information must include at least the following: (a) The identity of the stack or other point of emission, or both, where the excess emissions occurred. (b) The estimated magnitude of the excess emissi ons expressed in opacity or in the units of the applicable limitation on emission and the opera ting data and methods us ed in estimating the magnitude of the excess emissions. (c) The time and duration of the excess emissions. (d) The identity of the equipment causing the excess emissions.

-- 14-- Adopted Regulation R040-10(e) If the excess emissions we re the result of a malfunction, the steps taken to remedy the malfunction and the steps taken or planned to prevent the recurrence of the malfunction. (f) The steps taken to limit the excess emissions. (g) Documentation that the equipment for c ontrolling air pollution, process equipment or processes were at all times maintained and ope rated, to a maximum extent practicable, in a manner consistent with good practice for minimizing emissions. 6. Each owner or operator shall ensure that any notification or related information submitted to the Director pursuant to this section is pr ovided in a format specified by the Director. Sec. 18. NAC 445B.233 is hereby amended to read as follows: 445B.233 1. The Director shall determine fr om the submission of data and information required in subsection 5 of NA C 445B.232 or other informati on available to him that no violation occurred if: (a) The excess emission was the result of a routine start-up or shutdown for purposes of controlling production; (b) The amount and duration of the excess emissions were minimized to the extent practicable during the period of start-up or shutdown; and (c) Any one of the following conditions existed: (1) The effluent gas could not be passed through the equipment for controlling pollution without causing severe property damage. (2) The effluent gas could not be passed through the equipment for controlling pollution without causing severe upset of the process.

-- 15-- Adopted Regulation R040-10(3) The excess emission was the result of i gniter smoke which could not be controlled by the equipment for control used for normal operation. 2. If the owner or operator misrepresents facts or fails to disclose facts of which he had prior knowledge, the Director shall deem that the pe riod of excess emissions violates NAC 445B.001

to [ 445B.3791, ] 445B.3689, inclusive. 3. Nothing in this section limits the obligati on of the owner or opera tor of the stationary source to attain and maintain the standards for ambient air quality promulgated in NAC 445B.22097 or the authority of the Director to in stitute actions under sections 113 and 303 of the Act or to exercise his authorit y under NRS 445B.100 to 445B.640, inclusive. Sec. 19. NAC 445B.252 is hereby amended to read as follows: 445B.252 1. To determine compliance with NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, before the approval or the continuance of an opera ting perm it or similar class of permits, the Director may either conduct or orde r the owner of any statio nary source to conduct or have conducted such testing and sampling as the Director determines necessary. Testing and sampling or either of them must be conducted an d the results submitted to the Director within 60 days after achieving the maximum rate of producti on at which the affected facility will be operated, but not later than 180 days after initial start-up of the facility and at such other times as may be required by the Director. 2. Tests of performance must be conducted and data reduced in accordance with the methods and procedures of the te st contained in each applicable subsection of this section unless the Director:

-- 16-- Adopted Regulation R040-10(a) Specifies or approves, in specific cases, the use of a refe rence method with minor changes in methodology; (b) Approves the use of an equivalent method; (c) Approves the use of an alte rnative method, the results of which he has determined to be adequate for indicating whether a specific st ationary source is in compliance; or (d) Waives the requirement for tests of pe rformance because the ow ner or operator of a stationary source has demonstrated by other means to the Director’s satisfaction that the affected facility is in compliance with the standard. 3. Tests of performance must be conducted und er such conditions as the Director specifies to the operator of the plant base d on representative performance of the affected facility. The owner or operator shall make av ailable to the Director such r ecords as may be necessary to determine the conditions of the test of perfor mance. Operations during periods of start-up, shutdown and malfunction must not constitute repres entative conditions of a test of performance unless otherwise specified in the applicable standard. 4. The owner or operator of an affected faci lity shall give notice to the Director 30 days before the test of performance to allow the Di rector to have an obser ver present. A written testing procedure for the test of performance must be submitted to the Director at least 30 days before the test of performance to allow the Dire ctor to review the propo sed testing procedures. 5. Each test of performance must consist of at least three separate runs using the applicable method for that test. Each run must be conducte d for the time and under the conditions specified in the applicable standard. For the purpose of determining compliance with an applicable standard, the arithmetic means of results of th e runs apply. In the even t of forced shutdown,

-- 17-- Adopted Regulation R040-10failure of an irreplaceable portion of the samp ling train, extreme meteor ological conditions or other circumstances with less than three valid samples bei ng obtained, compliance may be determined using the arithmetic mean of the re sults of the other two runs upon the Director’s approval. 6. All testing and sampling will be performe d in accordance with recognized methods and as specified by the Director. 7. The cost of all testing and sampling a nd the cost of all sampling holes, scaffolding, electric power and other pertinen t allied facilities as may be re quired and specified in writing by the Director must be provided and paid for by the owner of the stationary source. 8. All information and analytical results of te sting and sampling must be certified as to their truth and accuracy and as to th eir compliance with all provisions of these regulations, and copies of these results must be provided to the Direct or no later than 60 days after the testing or sampling, or both. 9. Notwithstanding the provisions of subsec tion 2, the Director shall not approve an alternative method or equivalent method to dete rmine compliance with a standard or emission limitation contained in Part 60, 61 or 63 of Title 40 of the Code of Federal Regulations for: (a) An emission unit that is subject to a tes ting requirement pursuant to Part 60, 61 or 63 of Title 40 of the Code of Federal Regulations; or (b) An affected source. Sec. 20. NAC 445B.258 is hereby amended to read as follows:

-- 18-- Adopted Regulation R040-10445B.258 1. Unless otherwise approved by the Director or specified in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, the requirements of this section apply to all continuous monitoring system s required under applicab le provisions of those sections. 2. All continuous monitoring systems and monitoring devices must be installed and operational before conducting performan ce tests under NAC 445B.252. Verification of operational status must, as a mini mum, consist of the following: (a) For continuous monitoring systems re ferred to in subsection 2 of NAC 445B.259, completion of the conditioning period specified by applicable requirements in Appendix B of 40 C.F.R. Part 60. (b) For continuous monitoring systems referred to in NAC 445B.260, completion of 7 days of operation. (c) For monitoring devices referred to in NAC 445B.256 to 445B.267, inclusive, completion of the manufacturer’s written requirements or recommendations for checking the operation or calibration of the device. Sec. 21. NAC 445B.264 is hereby amended to read as follows: 445B.264 1. Owners or operators of a ll continuous monitoring systems for the measurement of opacity shall reduce all data to 6-minute averages and for systems other than opacity to 1-hour averages. 2. For systems other than opacity, 1-hour aver ages must be computed from four or more data points equally spaced over each 1-hour period. 3. Data recorded during periods of system br eakdowns, repairs, calibration checks, and zero and span adjustments must not be included in the data averages computed under this section. An

-- 19-- Adopted Regulation R040-10arithmetic or integrated average of all calibra ted data must be used. The data output of all continuous monitoring systems may be recorded in reduced or nonre duced form, e.g., ppm pollutant and percent O 2 or lb/million Btu of pollutant.
4. All excess emissions must be converted into units of the standard using the applicable conversion procedures speci fied in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. After conversion into units of the standard, the data m a y be rounded to the same number of significant digits used in those sections to specify the applicable standard, e.g., rounded to the nearest 1 percent opacity. 5. As used in this section, “calibrated data” means data which is precise and accurate within a stated acceptance criteria for the instrument. Sec. 22. NAC 445B.273 is hereby amended to read as follows: 445B.273 1. All new and existing stationary sources must comply with NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. Existing stationary sources are in compliance with those sections and m ay continue to operate under the provisions of their approved compliance schedules, which may be amended from time to time. 2. Compliance schedules must contain specifi c progress steps that will be taken toward achieving compliance. 3. The Commission may require periodic repo rts on each phase of progress under approved compliance schedules. Failure at any phase to make diligent and reasonable progress toward compliance with the approved compliance schedu le is an unreasonable delay and subjects the operator of the stationary source to administrative fine s as provided in NAC 445B.281.

-- 20-- Adopted Regulation R040-104. In approving compliance schedules, the Commission will take into consideration the social and economic effect of the schedule, including, but not limited to, its effect on the availability of fuels, energy, transportation and employment. Sec. 23. NAC 445B.275 is hereby amended to read as follows: 445B.275 1. Failure to comply with any requirement of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, any applicable requirement or any condition of an operating perm it constitutes a violation. As required by NRS 445B.450, the Director shall issu e a written notice of an alleged violation to any owner or operator for any violation, including, but not limited to: (a) Failure to apply for and obtain an operating permit; (b) Failure to construct a stat ionary source in accordance with the application for an operating permit as approved by the Director; (c) Failure to construct or ope rate a stationary source in accord ance with any condition of an operating permit; (d) Commencing construction or modification of a stationary source with out applying for and receiving an operating permit or a modificati on of an operating permit as required by NAC 445B.001 to 445B.3497, inclusive, or a mercury opera ting permit to construct as required by NAC 445B.3611 to 445B.3689, inclusive; (e) Failure to comply with any requiremen t for recordkeeping, monitoring, reporting or compliance certification contained in an operating permit; or (f) Failure to pay fees as required by NAC 445B.327 or 445B.3689.

-- 21-- Adopted Regulation R040-102. The written notice must specify the provision of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, the condition of the operating perm it or the applicable requirem ent that is being violated. 3. Written notice shall be deemed to have been served if delivered to the person to whom addressed or if sent by register ed or certified mail to the la st known address of the person. Sec. 24. NAC 445B.277 is hereby amended to read as follows: 445B.277 1. The Director sh all issue a stop order if: (a) The proposed construction, installation, a lterations or establishment will not be in accordance with the provisions of the plans, speci fications and other design material required to be submitted as part of the application for an operating permit and approved by the Director as a condition of the operating permit; or (b) The design material or the construction itself is of such a nature that it patently cannot bring the stationary source into compliance with NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. 2. A stop order may be issued at any time by the Director upon his determination that there has been a violation of any of the provisions of NAC 445B.001 to [ 445 B.3791, ] 445B.3689, inclusive, any applicable requirement or any condition of the operating perm it. 3. A person served with a stop order: (a) Shall immediately stop all activ ities specified in the stop order. (b) May apply for its revocati on at any time, setting forth the facts upon which he believes that the reasons for the issuance of the stop order no longer exist. If the Director finds that the reasons for the issuance of the stop order no longer exist, he shall withdraw the order promptly.

-- 22-- Adopted Regulation R040-10If the Director finds that the reasons for the issu ance of the stop order sti ll exist, or that other reasons exist for continuing a stop order in eff ect, he shall, within 24 hours, serve a written statement of his reasons for so finding. Sec. 25. NAC 445B.281 is hereby amended to read as follows: 445B.281 1. Except as otherwise provided in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, any violation of the pr ovisions of those sections is cla ssified as a m ajor violation, and a fine up to $10,000 per day per violation may be levied. 2. For Class II and Class III sour ces, violations of NAC 445B.22037, 445B.22067, 445B.2207, 445B.22087, subsections 3 and 4 of NAC 445B.232, subsection 8 of NAC 445B.252, subsection 2 of NAC 445 B.265, paragraph (e) of subsection 1 of NAC 445B.275 and NAC 445B.331 are classified as minor or lesser violations, un less there are four or more violations of any one of those sections by a pe rson, occurring within a period of 60 consecutive months. 3. The schedule of fines for mi nor violations is as follows:

First Second Third Offense Offense Offense

NAC 445B.22037, fugitive dust.....................................

. .......$500 $1,000 $2,000 NAC 445B.22067, open burning....................................

. .........250 500 1,000 NAC 445B.2207, incinerator burning............................

. .........250 500 1,000

-- 23-- Adopted Regulation R040-10First Second Third Offense Offense Offense

NAC 445B.22087, odors................................................

. .........250 500 1,000 Subsection 3 or 4 of NAC 445B.232, reporting of excess emissions........................................................

. .........250 500 1,000 Subsection 8 of NAC 445B .252, testing and sampling reporting ....................................................................

. .........250 500 1,000 Subsection 2 of NAC 445B.265, reporting of monitoring systems....................................................

. .........250 500 1,000 Paragraph (e) of subs ection 1 of NAC 445B.275, recordkeeping, monitoring, reporting or compliance certification................................................................

. .........250 500 1,000 NAC 445B.331, change of location ...............................

. .........250 500 1,000 Sec. 26. NAC 445B.287 is hereby amended to read as follows: 445B.287 1. Except as otherwise provide d in subsection 2 and in NAC 445B.288, an operating permit, operating permit to construct or permit to construct is required for each stationary source and: (a) If a stationary source is a Class I source: (1) A revision of the operating permit or the permit to construct is required pursuant to the requirements of NAC 445B.3425, 445B.344 or 445B.3441 be fore the stationary source may be modified; or

-- 24-- Adopted Regulation R040-10(2) A revision of the operating permit to cons truct is required pursuant to the requirements of paragraph (a) of subsection 1 of NAC 445B .3361 before the stationary source may be modified,

 as appropriate. (b) If a stationary source is a Class II sour ce, a revision of the opera ting permit or the permit to construct is required pursuant to the re quirements of NAC 445B.3465 be fore the stationary source may be modified. (c) If a stationary source is a Class III sour ce, a revision of the operating permit is required pursuant to the requirements of NAC 445B.3493 before the stationary source may be modified. (d) If a stationary source maintains one or mo re thermal units that emit mercury, the owner or operator of a thermal unit that emits mercury sha ll comply with the provisions set forth in NAC 445B.3611 to 445B.3689, inclusive. [ (e) If a mercury budget source maintains one or more mercury budget units, the owner or operator of a mercury bu dget unit shall comply with the provisions set forth in NAC 445B.3711 to 445B.3791, inclusive. ] 2. A Class I source is not subject to the prov isions of subparagraph (1 ) of paragraph (a) of subsection 1 if the source is not a major source, an affected source or a solid waste incineration unit required to obtain a permit pursuant to 42 U. S.C. § 7429(e). For a Class I source which is not a major source and which subsequently become s subject to a standard or other requirement under 42 U.S.C. § 7411 or 7412, the Administrator w ill determine whether to exempt the source from the requirement to obtain a Class I operatin g permit at the time that the new standard is adopted.

-- 25-- Adopted Regulation R040-103. An operating permit, operating permit to construct or permit to construct may not be transferred from one owner or piece of equipmen t to another. An owner or operator may apply for an administrative amendment reflecting a change of ownership or the na me of the stationary source for the effective time remaining on the original operating permit pursuant to NAC 445B.319. 4. As used in this section: (a) [ “Mercury budget unit” has the meani ng ascribed to it in NAC 445B.3739. (b) “Operator” has the meaning ascribed to it in NAC 445B. 3749 with respect to a CAMR operating permit to construct. (c) “Owner” has the meaning ascribed to it in NAC 445B.3753 with respect to a CAMR operating permit to construct. (d) ] “Permit to construct” means a document issued and signed by the Director before November 1, 1995, certifying that: (1) Adequate empirical data for a stationa ry source has been received and constitutes approval of location; or (2) All portions of NAC 445B.305 to 445B.314, inclusive, and 445B.3395, and any other provisions of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, have been complied with and constitute approval of location and for construction. [ (e) ] (b) “Thermal unit that emits mercury” has the meaning ascribed to it in NAC 445B.3643. Sec. 27. NAC 445B.298 is hereby amended to read as follows:

-- 26-- Adopted Regulation R040-10445B.298 Except as otherwise provided in NAC 445B.3364, 445B.3395, 445B.3457, 445B.3487 [ , ] or 445B.3683 , [ or 445B.3769, ] the official date of submittal of an application for: 1. An operating permit; 2. An operating permit to construct; 3. A revision of an existing operating permit; or 4. A revision of an existing operating permit to construct,

 is the date on which the Director determ ines that the application is complete. Sec. 28. NAC 445B.305 is hereby amended to read as follows: 445B.305 The Director may impose standards fo r emissions on a proposed stationary source that are more stringent than those found in NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, as a condition of approving an opera ting perm it for the proposed stationary source. Sec. 29. NAC 445B.325 is hereby amended to read as follows: 445B.325 1. [ Except as otherwise prov ided in subsection 2, a ] A Class I operating permit must be reopened and revised to incorporate any additional applicable requirem ent adopted pursuant to the Act if, on the effective date of the applicable requirement, the operating permit has a remaining term of 3 or more years. The reopening must be completed not later than 18 months after the effective date of the applicable requirement. 2. [ A Class I operating permit is not required to be reopened for a mercury budget unit. The owner or operator of a mercury budget unit shal l comply with the pr ovisions of NAC 445B.3711 to 445B.3791, inclusive. As used in this subsection: (a) “Mercury budg et unit” has the meaning ascr ibed to it in NAC 445B.3739. (b) “Operator” has the meaning as cribed to it in NAC 445B.3749.

-- 27-- Adopted Regulation R040-10(c) “Owner” has the meaning ascribed to it in NAC 445B.3753. 3. ] An operating permit may be terminated, reopened and revised, revised, or revoked and reissued if: (a) The Director or the Administrator determines that the operating permit contains a material mistake or is based on inaccurate statements; (b) The Director or the Administrator determin es that the operating pe rmit, as written, does not ensure compliance with all applicable requirements; or (c) The Director determines that there has be en a violation of any of the provisions of NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive, any applicable re quirem ent, or any condition contained in the operating permit. [ 4. ] 3. The Director shall notify the holder of the operating perm it at least 30 days before he terminates, reopens and revises, revises, or re vokes and reissues the ope rating permit. The notice must be made by certified mail and must contai n the legal authority, the jurisdiction and the reasons for the action taken. [ 5. ] 4. If the Administrator notifies the Director and the holder of the operating perm it that cause exists to reopen the opera ting permit, the Director shall forward to the Administrator a proposed determination of the reopening and re vision, the revision of, or the revocation and reissuance of the operating permit within 90 da ys after receipt of the notice from the Administrator. [ 6. ] 5. If the Director reopens an operating permit, he shall revise only those portions of the operating perm it for which cause exists.

-- 28-- Adopted Regulation R040-10[ 7. ] 6. The reopening of an operating permit pursuant to th is section must comply with all of the relevant requirements for the issuance or revision of a permit, in cluding the requirements related to the content of the permit and the requirements for notice, public participation and comment, and a review by any affected states. Sec. 30. NAC 445B.3265 is hereby amended to read as follows: 445B.3265 1. An operating permit may be re voked if the control equipment is not operating. 2. An operating permit may be revoked by the Director upon determining that there has been a violation of NAC 445B.001 to [ 445B.379 1, ] 445B.3689, inclusive, or the provisions of 40 C.F.R. § 52.21, or 40 C.F.R. Part 60 or 61, Prev ention of Significant Deterioration, New Source Perform ance Standards, and National Emission St andards for Hazardous Air Pollutants, adopted by reference in NAC 445B.221. 3. The revocation is effective 10 days after th e service of a written notice, unless a hearing is requested. 4. To reissue a revoked operating permit, the holder of the revoked permit must file a new application with the Director, accompanied by the fee for an initial operating permit as specified in NAC 445B.327. An environmental review of the stationary source must be conducted as though construction had not yet commenced. Sec. 31. NAC 445B.3361 is hereby amended to read as follows: 445B.3361 1. To establish a new Class I stati onary source or modify an existing Class I stationary source, the owner or operator of a proposed new Class I stationary source or the existing Class I stationary source must:

-- 29-- Adopted Regulation R040-10(a) Apply for and obtain a new or revised: (1) Operating permit to construct pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive; or (2) Class I operating perm it pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive; and (b) If the owner or operator of the Class I sta tionary source operates a thermal unit that emits mercury, apply for and obtain a new or revised mercury operating permit to construct for the thermal unit that emits mercury and comply w ith the provisions set fo rth in NAC 445B.3611 to 445B.3689, inclusive
. [ ; and (c) If the owner or operator of the Class I sta tionary source operates a mercury budget unit, apply for and obtain a CAMR operating permit to construct or revised CAMR operating permit to construct and comply with the provisions of NAC 445B.3711 to 445B.3791, inclusive. ] 2. To establish a plantwide applicability limitation, the owner or operator of a Class I stationary source must apply for and obtain a Class I operating permit to construct for the approval of the plantwide applicabilit y limitation pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. To revise or renew a Class I operating perm it to construct for the approval of a plantwide applicability limitation, the owner or operator of a Class I stationary source must apply for and obtain a revised or renewed Class I operating permit to construct for the approval of a plantwide appli cability limitation pursuant to NAC 445B.001 to [ 445B.3791, ] 445B.3689, inclusive. 3. Except as otherwise provided in subsecti on 5, if an owner or operator obtains an operating permit to construct, the owner or operato r is not required to obtain an operating permit

-- 30-- Adopted Regulation R040-10or revised operating permit before commencing in itial construction, start- up and operation of the proposed new Class I stationary source or the modification to th e existing Class I stationary

source. 4. Except as otherwise provided in this subs ection and subsections 5 and 6, if an owner or operator has a valid operating permit to construct, the owner or operator may continue to operate a new Class I stationary source or modifications to an existin g Class I stationary source under that operating permit to construc t if the owner or operator subm its a complete application for a Class I operating permit within 12 months after the date of initi al start-up of the new Class I stationary source or modifications to the existing Class I stationary source. The provisions of this subsection do not apply to a Class I operating pe rmit to construct for the approval of a plantwide applicability limitation. 5. If the conditions of an existing Class I operating permit would prohibit the construction or change in operation of the exis ting Class I stationary source and the owner or operator is not seeking to revise the Class I operating permit at the Class I st ationary source pursuant to subparagraph (2) of paragraph (a ) of subsection 1, the owner or operator must concurrently: (a) For the construction or change in operati on of the existing Class I stationary source: (1) Obtain a Class I operating permit to construct; or (2) If the construction or ch ange in operation involves mercury emissions from a thermal unit that emits mercury, obtain a mercury opera ting permit to construct pursuant to NAC 445B.3611 to 445B.3689, inclusive; and (b) Obtain an administrative revision to an operating permit to incorporate the conditions of the Class I operating permit to construct into the existing Class I operating permit pursuant to

-- 31-- Adopted Regulation R040-10NAC 445B.3441 before commencing with the construc tion or change in operation of the existing Class I stationary source. 6. If an owner or operator has a valid [ : (a) Mercury ] mercury operating permit to construct, the owner or operator may continue to operate the therm al unit that emits mercury which is located at an exis ting Class I stationary source if the owner or operator submits a comple te application to revi se the existing Class I operating permit within 12 months after the determination of the NvMACT contained in the mercury operating permit to construct by the Director. [ (b) CAMR operating permit to construct, the owne r or operator may continue to operate the mercury budget unit located at an ex isting Class I stationary source: (1) If the owner or operator of an existi ng mercury budget unit submits a complete application to revise the existing Class I operating permit on or before January 1, 2010; or (2) If the owner or operator of a new mercur y budget unit submits a complete application at the time the owner or operator is require d to file the initial Class I operating pe rmit application. ] 7. As used in this section: (a) [ “CAMR operating permit to construct” ha s the meaning ascribed to it in NAC 445B.3713. (b) “Existing mercury budget uni t” has the meaning ascribed to it in NAC 445B.3723. (c) “Mercury budget unit” has the meaning ascribed to it in NAC 445B.3739. (d) ] “Mercury emissions” has the meaning ascribed to it in NAC 445B.3623.

-- 32-- Adopted Regulation R040-10[ (e) ] (b) “Mercury operating permit to construct” has the m eaning ascribed to it in NAC 445B.3625. [ (f) “New mercury budget unit” has the meaning ascribed to it in NAC 445B.3745. (g) ] (c) “NvMACT” has the meaning as cribed to it in NAC 445B.3629. [ (h) ] (d) “Thermal unit that emits mercury” has the meaning ascribed to it in NAC 445B.3643. Sec. 32. NAC 445B.3711, 445B.3713, 445B.3715, 445B.3717, 445B.3719, 445B.3721, 445B.3723, 445B.3725, 445B.3727, 445B.3729, 445B.3731, 445B.3733, 445B.3735, 445B.3737, 445B.3739, 445B.3741, 445B.3743, 445B.3745, 445B.3747, 445B.3749, 445B.3751, 445B.3753, 445B.3755, 445B.3757, 445B.3759, 445B.3761, 445B.3763, 445B.3765, 445B.3767, 445B.3769, 445B.3771, 445B.3773, 445B.3775, 445B.3777, 445B.3779, 445B.3781, 445B.3783, 445B.3785, 445B.3787, 445B.3789 and 445B.3791 are hereby repealed.

TEXT OF REPEALED SECTIONS

445B.3711 Definitions. (NRS 445B.210, 445B.300) As used in NAC 445B.3711 to 445B.3791, inclusive, unless the cont ext otherwise requires, the words and terms defined in NAC 445B.3713 to 445B.3763, inclusive, have the meani ngs ascribed to them in those sections.

-- 33-- Adopted Regulation R040-10445B.3713 “Clean Air Mercury Rule operating permit to construct” and “CAMR operating permit to construct” defined. (NRS 445B.210, 445B.300) “Clean Air Mercury Rule operating permit to construct,” abbrevia ted as “CAMR operating permit to construct,” means a legally binding document that is issu ed by the Director pur suant to NAC 445B.3769, including, without limitation, a permit revision, specifying the requirements of the mercury budget trading program whic h are applicable to: 1. A mercury budget source; 2. Each mercury budget unit at the mercury budget source; and 3. The owners, operators and mercury desi gnated representatives of the mercury budget source and of each mercury budget unit at the mercury budget source. 445B.3715 “Compliance account” defined. (NRS 445B.210, 445B.300) “Compliance account” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3717 “Control period” defined. (NRS 445B.210, 445B.300) “Control period” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3719 “Emissions” defined. (NRS 445B.210, 445B.300) “Emissions” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by refe rence in NAC 445B.221. 445B.3721 “Excess emissions” defined. (NRS 445B.210, 445B.300) “Excess emissions” has the meaning ascribed to it in 40 C.F. R. § 60.4102, as adopted by reference in NAC 445B.221.

-- 34-- Adopted Regulation R040-10445B.3723 “Existing mercury budget unit” defined. (NRS 445B.210, 445B.300) “Existing mercury budget unit” means a mercur y budget unit that commenced construction or reconstruction on or before January 30, 2004. 445B.3725 “Low emitting unit/Integrated gas ification combined cycle allocation account” and “LEU/IGCC allocation account” defined. (NRS 445B.210, 445B.300) “Low emitting unit/Integrated gasification combined cycle allocation account,” abbreviated as “LEU/IGCC allocation account,” means a merc ury allowance tracking system account for a mercury budget unit which meets the criteria set forth in subsection 2 of NAC 445B.3787. 445B.3727 “Mercury allowance” defined. (NRS 445B.210, 445B.300) “Mercury allowance” means an “Hg allowance” as define d in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3729 “Mercury allowance tracking system” defined. (NRS 445B.210, 445B.300) “Mercury allowance tracking system” means an “Hg Allowance Tracking System” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3731 “Mercury allowance tracking sy stem account” defined. (NRS 445B.210, 445B.300) “Mercury allowance tracking system account” means an “Hg Allowance Tracking System account” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3733 “Mercury baseline emission pe riod” defined. (NRS 445B.210, 445B.300) “Mercury baseline emission period” means a pe riod of operation of a new mercury budget unit of 36 consecutive months determined from m easured emissions from the new mercury budget unit in accordance with 40 C.F.R. §§ 60.4170 to 60.4175, inclusive, as adopted by reference in NAC 445B.221.

-- 35-- Adopted Regulation R040-10445B.3735 “Mercury budget source” defined. (NRS 445B.210, 445B.300) “Mercury budget source” means an “Hg Budget source” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3737 “Mercury budget trading pr ogram” defined. (NRS 445B.210, 445B.300) “Mercury budget trading program” means an “Hg Budget Trading Program” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3739 “Mercury budget unit” defined. (NRS 445B.210, 445B.300) “Mercury budget unit” means an “Hg Budget unit” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3741 “Mercury designated representa tive” defined. (NRS 445B.210, 445B.300) “Mercury designated representative” means an “H g designated representative” as defined in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3743 “Monitoring system” defined. (NRS 445B.210, 445B.300) “Monitoring system” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3745 “New mercury budget unit” defined. (NRS 445B.210, 445B.300) “New mercury budget unit” means a mercury budget unit that commenced construction or reconstruction after January 30, 2004. 445B.3747 “New source allocation account” defined. (NRS 445B.210, 445B.300) “New source allocation account” means a mercur y allowance tracking system account for a mercury budget unit that has not establis hed a mercury baseline emission period.

-- 36-- Adopted Regulation R040-10445B.3749 “Operator” defined. (NRS 445B.210, 445B.300) “Operator” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3751 “Ounce” defined. (NRS 445B.210, 445B.300) “Ounce” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3753 “Owner” defined. (NRS 445B.210, 445B.300) “Owner” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3755 “Recordation” and “recorded” defined. (NRS 445B.210, 445B.300) “Recordation” or “recorded” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3757 “Source” defined. (NRS 445B.210, 445B.300) “Source” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3759 “Special allocation acco unt” defined. (NRS 445B.210, 445B.300) “Special allocation account” means a mercury allowan ce tracking system account in which mercury allowances that are not otherwise allo cated are recorded for a control period. 445B.3761 “Unit” defined. (NRS 445B.210, 445B.300) “Unit” has the meaning ascribed to it in 40 C.F.R. § 60.4102, as adopted by reference in NAC 445B.221. 445B.3763 CAMR operating permit to constr uct: Duties of owner or operator of mercury budget source. (NRS 445B.210, 445B.300) In addition to obtai ning a Class I, Class II or Class III operating permit as required pursuant to NAC 445B.287 to 445B.3497, inclusive, an owner or operator of a merc ury budget source that has a ne w mercury budget unit or existing mercury budget unit shall:

-- 37-- Adopted Regulation R040-101. Submit to the Director, on a form provide d by the Director, an ap plication for a CAMR operating permit to construct for the mercury budge t unit on or before July 1, 2008, or 18 months before the date on which the mercury budget unit commences operation, whichever occurs later; and 2. Obtain a CAMR operating permit to construct for the mercury budget unit. 445B.3765 CAMR operating permit to constr uct: Application for revision. (NRS 445B.210, 445B.300) An owner or operator of a mercury budget source who has a CAMR operating permit to construct may submit to the Di rector, on a form provided by the Director, an application for a revision of the CAMR operating permit to construct. 445B.3767 CAMR operating permit to constr uct: Contents of applications. (NRS 445B.210, 445B.300) An application for a CAMR operating permit to construct submitted pursuant to NAC 445B.3763 or an application for a revision of a CAMR operating permit to construct submitted pursuant to NAC 445B.3765 must include, without limitation: 1. Information to identify the app licant, including, without limitation: (a) The name and address of the company that is applying for the CAMR operating permit to construct or revision of a CAMR operating permit to construct, or the na me and address of the mercury budget source if it is different from the name and address of the company; (b) The name of the owner of the company and his agent; and (c) The name and telephone number of the mana ger of the mercury budget source or another appropriate person to contact; 2. An identification of each mercury budge t unit located at the mercury budget source;

-- 38-- Adopted Regulation R040-103. The location of any records that the a pplicant must keep, in accordance with the requirements of the CAMR operating permit to cons truct and in accordance with paragraph (r) of subsection 2 of NAC 445B.3771, if the records ar e kept at a location other than the emitting mercury budget source; 4. A mercury monitoring plan, the content of which is consistent with the appropriate provisions of 40 C.F.R. Parts 60 and 75; and 5. Other specific information that the Director determines is necessary to carry out, enforce and determine the applicability of all legal requirements. 445B.3769 CAMR operating permit to construc t: Action by Director on applications. (NRS 445B.210, 445B.300) 1. Within 30 days after the da te of receipt of an applicati on for a CAMR operating permit to construct or an application for a revision of a CAMR operating permit to construct, the Director shall determine whether the application is comp lete. If substantial additional information is required, the Director shall determine that th e application is incomplete and return the application to the applicant. If substantial a dditional information is not required, the Director shall determine the application to be complete. The official date of submittal of the application shall be deemed to be the date on which the Direct or determines that the application is complete or the 31st day after th e date of receipt, wh ichever occurs earlier. 2. If, after the official date of submittal of an application pursuant to subsection 1, the Director discovers that additional information is required to act on the application, the Director may request additional information necessary to determine whether the proposed construction or operation will comply with all of the requi rements set forth in NAC 445B.3711 to 445B.3791,

-- 39-- Adopted Regulation R040-10inclusive. The applicant must provide in writi ng any additional informa tion that the Director requests within the time specified by the Director . Any delay in the submittal of the requested information will result in a corresponding delay in the action of the Director on the application submitted to the Director. 3. Within 12 months after the official date of submittal of an application for a CAMR operating permit to construct or an applicati on for revision of a CAMR operating permit to construct, the Director shall issue or deny the CAMR operating permit to construct or the proposed revision of a CAMR ope rating permit to construct. 445B.3771 CAMR operating permit to cons truct: Contents; noncompliance with conditions. (NRS 445B.210, 445B.300) For each mercury budget unit: 1. Described in a CAMR operating permit to construct, the Director shall cite the legal authority for each condition contained in the CAMR operating permit to construct. 2. The CAMR operating permit to construc t for the mercury budget unit must contain the following conditions: (a) Each of the conditions a nd requirements of the CAMR oper ating permit to construct is severable, and if any is held invalid, the re maining conditions and requirements continue in effect. (b) The holder of the CAMR operating permit to construct must comply with all conditions of the CAMR operating permit to construct. Any noncompliance cons titutes a violation and is a ground for: (1) An action for noncompliance;

-- 40-- Adopted Regulation R040-10(2) The revoking and reissuing, or the te rminating, of the CAMR operating permit to construct by the Director; or (3) The reopening or revising of the CAMR operating permit to constr uct by the holder of the CAMR operating permit to construct as directed by the Director. (c) The need to halt or reduce activity to maintain compliance with the conditions of the CAMR operating permit to construct is not a defe nse to noncompliance with any condition of the CAMR operating permit to construct. (d) The Director may revise, revoke and reis sue, reopen or terminate the CAMR operating permit to construct for cause. (e) The CAMR operating permit to construc t does not convey any property rights or any exclusive privilege. (f) A mercury allowance does not constitute a property right. (g) The holder of the CAMR operating permit to construct shall provide the Director, in writing and within a reasonable time, with any information that the Director requests to determine whether cause exists for revoking or terminating the CAMR operating permit to construct, or to determine compliance with the conditions of the CA MR operating permit to

construct. (h) The holder of the CAMR operating permit to construct shall allow the Director or any authorized representative of the Direct or, upon presentation of credentials, to: (1) Enter upon the premises of the holder of the CAMR operating permit to construct where: (I) The mercury budget unit is located;

-- 41-- Adopted Regulation R040-10(II) Activity relate d to the mercury budget unit is conducted; or (III) Records are kept pu rsuant to the conditions of the CAMR operating permit to construct; (2) Have access to and copy, during normal business hours, any records that are kept pursuant to the conditions of the CA MR operating permit to construct; (3) Inspect, at reasonable times, any fac ilities, practices, operations or equipment, including, without limitation, any eq uipment for monitoring or cont rolling air pollu tion, that are regulated or required pursuant to the CAMR operating permit to construct; and (4) Sample or monitor, at reasonable times, substances or parameters to determine compliance with the conditions of the CAMR op erating permit to construct or applicable requirements. (i) A mercury designated repres entative of the mercury budget s ource shall certify that, based on information and belief formed after a reas onable inquiry, the statements made in any document required to be submitted pursuant to a ny condition of the CAMR operating permit to construct are true, accurate and complete. (j) The owners and operators, and the mercur y designated representative, of each mercury budget source and each mercury budget unit at the mercury budget source shall comply with the monitoring, reporting and recordkeeping re quirements of 40 C.F.R. §§ 60.4170 to 60.4175, inclusive. The emissions measurements recorded and reported in accordance with 40 C.F.R. §§ 60.4170 to 60.4175, inclusive, must be used to determine compliance by each mercury budget source with the mercury budget emissions limitations se t forth in paragraphs (k ) to (p), inclusive.

-- 42-- Adopted Regulation R040-10(k) Not later than the deadline for allowance transfer for a control period, the owners and operators of each mercury budget source and each mercury budget unit at the mercury budget source shall hold, in the mercury budget source ’s compliance account, mercury allowances available for compliance deductions for the control period under 40 C.F.R. § 60.4154(a) in an amount not less than the ounces of total mercur y emissions for the control period from all mercury budget units at the mercury budget source, as determined in accordance with 40 C.F.R. §§ 60.4170 to 60.4175, inclusive. (l) A mercury budget unit is subject to the requirements of paragraph (k) beginning on January 1, 2010, or the deadline for meeting th e unit’s monitor certification requirements under 40 C.F.R. § 60.4170(b)(1) or (2), whichever occurs later. (m) A mercury allowance must not be deduc ted for compliance with the requirements of paragraph (k) for a control period in a calendar year before the year for which the mercury allowance was allocated. (n) Mercury allowances must be held in, deduc ted from or transferre d into or among mercury allowance tracking system accounts in acco rdance with 40 C.F.R. §§ 60.4160, 60.4161 and 60.4162. (o) A mercury allowance is a limited authoriza tion to emit 1 ounce of mercury in accordance with the mercury budget trading program. No pr ovision of the mercury budget trading program, the application for a CAMR operating permit to construct, the CAMR operating permit to construct, an exemption under 40 C.F.R. § 60.4105 or any provision of law shall be construed to limit the authority of this State or the United States to termin ate or limit such authorization.

-- 43-- Adopted Regulation R040-10(p) Upon recordation by the Administra tor pursuant to 40 C.F.R. §§ 60.4150 to 60.4162, inclusive, every allocation or transfer of a mercury allowan ce to or deduction of a mercury allowance from the compliance account of a merc ury budget unit is incorporated automatically into any CAMR operating permit to construct of the mercury budget source that includes the mercury budget unit. (q) If a mercury budget source emits mercury during any control period in excess of the mercury budget emissions limitation: (1) The owners and operators of the me rcury budget source and each mercury budget unit at the mercury budget source sha ll surrender the mercury allowanc es required for deduction pursuant to 40 C.F.R. § 60.4154(d)(1) and pay any fi ne, penalty or assessment or comply with any other remedy imposed, for the same viola tion of the mercury budget emissions limitation under the Act or applicable state law; and (2) Each ounce of such excess emissions and each day of such control period constitutes a separate violation of 40 C.F.R. Part 60, Subpa rt HHHH, the Act and a pplicable state law. (r) Unless otherwise provided, the owners and operators of the mercury budget source and each mercury budget unit at the mercury budget sour ce shall keep on-site at the mercury budget source each of the documents desc ribed in subparagraphs (1) to (4 ), inclusive, for a period of 5 years after the date on which the document is cr eated. This period may be extended for cause, at any time before the end of the 5- year period, in writing by the Dir ector or the Administrator. The owners and operators of the mercury budget s ource and each mercury budget unit at the mercury budget source shall keep on-site at the mercury budget source:

-- 44-- Adopted Regulation R040-10(1) The certificate of representation issued pursuant to 40 C.F.R. § 60.4113 for the mercury designated representative for the merc ury budget source and each mercury budget unit at the mercury budget source and documents that de monstrate the truth of the statements in the certificate of representation, provide d that the certificate and docume nts must be retained on-site at the mercury budget source beyond the 5-year pe riod described in this paragraph until such documents are superseded because of the submission of a new certificate of representation pursuant to 40 C.F.R. § 60.4113 changing the mercury designated representative. (2) All emissions monitoring inform ation required by 40 C.F.R. §§ 60.4170 to 60.4175, inclusive, provided that to the extent that 40 C.F.R. §§ 60.4170 to 60.4175, inclusive, provide for a 3-year period for recordkeeping, the 3-year period will apply. (3) Copies of all reports, compliance certi fications and other submissions, and all records made or required pursuant to the provisions of the mercury budget trading program. (4) Copies of all documents used to comp lete an application for a CAMR operating permit to construct and any other submission under the mercury budget trading program or to demonstrate compliance with the requiremen ts of the mercury budget trading program. (s) The mercury designated representative of a mercury budget source and each mercury budget unit at the mercury budget source must submit the reports required by the mercury budget trading program, including, without limitation, th ose reports required pursuant to 40 C.F.R. §§ 60.4170 to 60.4175, inclusive. (t) Each mercury budget source and each merc ury budget unit at the mercury budget source must meet the requirements of the mercury budget trading program regardi ng liability, including, without limitation, that:

-- 45-- Adopted Regulation R040-10(1) Any provision of the mercury budget trad ing program that applie s to a mercury budget source or the mercury designated representative of a mercury budge t source must also apply to the owners and operators of such source and of the mercury budget units at the mercury budget source; and (2) Any provision of the mercury budget trad ing program that applie s to a mercury budget unit or the mercury designated representative of a mercury budget unit must also apply to the owners and operators of such unit. (u) No provision of the mercury budget tr ading program, an application for a CAMR operating permit to construct, a CAMR operating permit to construct or an exemption under 40 C.F.R. § 60.4105 shall be construed as exempting or excluding the owners and operators and the mercury designated representative of a mercur y budget source or mercury budget unit at the mercury budget source from compliance with any other provision of th e applicable state implementation plan, a federally enforceable permit or the Act. (v) The owner or operator of the mercur y budget unit shall comply with the mercury monitoring plan which is required to be submitted pursuant to subsection 4 of NAC 445B.3767. (w) Any other requirements which th e Director determines are necessary. 445B.3773 CAMR operating permit to construct: Expiration. (NRS 445B.210, 445B.300) For a new mercury budget unit or a modified mercury budget unit: 1. Except as otherwise provided in this subs ection, if construction wi ll occur in one phase, a CAMR operating permit to construct for a new mercury budget unit or modified mercury budget unit expires if construction is not commenced within 18 months afte r the date of issuance of the permit or if construction of the mercury budget unit is delayed for at least 18 months after

-- 46-- Adopted Regulation R040-10initiated. The Director may extend the date on which the construction may be commenced upon a showing that the extension is justified. 2. If construction will occur in more th an one phase, the projected date of the commencement of construction of each phase of construction must be ap proved by the Director. Except as otherwise provided in this subsection, a CAMR operating permit to construct expires if the initial phase of cons truction is not commenced within 18 m onths after the projected date of the commencement of construction approved by th e Director. The Director may extend only the date on which the initial phase of construction may be commenced upon a showing that the extension is justified. 445B.3775 Trading budgets for annual allocati ons of mercury allo wances for Nevada. (NRS 445B.210, 445B.300) 1. The trading budget for annual allocations of mercury allowances for Nevada for: (a) Control periods 2010 to 2017, inclusive, is 0.285 tons (9120 ounces/allowances) per control period; and (b) Control period 2018 and each contro l period thereafter, is 0.112 tons (3584 ounces/allowances) pe r control period. 2. The Director shall not allocate mercury allowances in excess of the trading budget allowances for Nevada as set forth in subsection 1. 445B.3777 Director: Submission of mercury allo wance allocations to Administrator. (NRS 445B.210, 445B.300) The Director shall submit to the Administrator the mercury allowance allocations, in a format prescribed by the Administrator and in accordance with NAC 445B.3781, for:

-- 47-- Adopted Regulation R040-101. Control periods 2010, 2011 and 2012, by November 17, 2006; and 2. Control period 2013 and each control period thereafter, by October 31, 2009, and October 31 of each year thereafter, respectively, for each mercury budget unit that has established a mercury baseline emissions period. 445B.3779 Director: Establishment of certai n mercury allowance tracking system accounts; notification of Administrator of al location distribution for each control period. (NRS 445B.210, 445B.300) 1. The Director shall establ ish the mercury allowance tracki ng system accounts as follows: (a) For a new source allocation account: (1) For control periods 2010 to 2017, in clusive, 800 mercury allowances; and (2) For control period 2018 and each contro l period thereafter, 112 mercury allowances. (b) For a LEU/IGCC allocation account: (1) For control periods 2010 to 2017, in clusive, 3,200 mercury allowances; and (2) For control period 2018 and each contro l period thereafter, 112 mercury allowances. (c) For a special allocation account, for control period 2010 and each control period thereafter, all allowances not otherwise allocat ed pursuant to paragra phs (a) and (b) and NAC 445B.3781. 2. The Director shall notify the Administrato r of the allocation distribution for each control period. 445B.3781 Director: Determination of mercury allowance allocations for certain mercury budget units. (NRS 445B.210, 445B.300)

-- 48-- Adopted Regulation R040-101. For control periods 2010, 2011 and 2012, th e Director shall determine the mercury allowance allocation for each mercury budget unit that commenced operation before January 1, 2001, based on: (a) Mercury emissions factors determined from testing performed at the mercury budget

source; (b) The highest calendar year of gross me gawatts output achieved by each mercury budget unit for control periods 2003, 2004 and 2005; and (c) The corresponding capacity fact or for the year determined from paragraph (b), as reported to the Public Utilities Commission of Nevada. 2. For control period 2013 and each control pe riod thereafter, the Dir ector shall determine the mercury allowance allocation for each merc ury budget unit that commenced operation before January 1, 2001, and any other mercury budget un it that has established a mercury baseline emission period, based on actual mercury emissi ons data measured and as reported for each mercury budget unit for control period 2009 and each year thereafter and: (a) Each mercury budget unit’s capacity factors, as contained in the resource plan approved by the Public Utilities Commission of Nevada; or (b) An 80 percent capacity factor for a mercury budget unit that does not have a resource plan approved by the Public Utilities Commission of Nevada. 3. If necessary, the allocation will be prorat ed with other mercury budget units that have established a mercury baseline emission period us ing the total gross megawatts for the preceding 36-month period of operation.

-- 49-- Adopted Regulation R040-104. The Director shall not allocate mercury allowances to any mercury budget source or mercury budget unit that is permanently retire d and that is exempted under 40 C.F.R. § 60.4105(a), or which has an expired CA MR operating permit to construct. 5. As used in this section, “resource plan ” has the meaning ascribed to it in NAC 704.9156. 445B.3783 Annual requests for certain transfers between mercury allowance tracking system accounts; mercury allowances for certain pollution control projects. (NRS 445B.210, 445B.300) 1. Except as otherwise provided in subsection 4, on or before 15 business days before June 1, 2011, and June 1 of each year thereafter, fo r each mercury budget source that has been provided allocations in excess of the total actua l emissions for all mercury budget units at the mercury budget source for the preceding control period, the mercury designated representative shall submit a request to the Administrator to transfer from the compliance account of the mercury budget source to the LEU/IGCC allocatio n account the amount of mercury allowances that exceeds actual mercury emissions from all mercury budget units at the mercury budget

source. 2. On or before 5 business days before February 28, 2011, and February 28 of each year thereafter, for each mercury budget source that ha s been allocated mercury allowances in an amount less than that of the total actual emi ssions for all mercury budget units at the mercury budget source for the preceding control period, th e Director shall submit a request to the Administrator to transfer from the special allocation account to the compliance account of the mercury budget source the amount of mercury a llowances necessary to balance the mercury budget source’s actual mercury emissions for th e control period. If the amount of mercury

-- 50-- Adopted Regulation R040-10allowances in the special allocation account is less than the balance necessa ry to equal the actual mercury emissions from all the mercury budget sour ces for the control peri od, the Director shall prorate mercury allowances usi ng the total gross megawatts fr om all eligible mercury budget units for the control period. 3. The Director shall not al locate mercury allowances to any mercury budget unit to cover allowances needed by the mercury budget source pursuant to 40 C.F.R. § 60.4154(d). 4. A mercury budget source may retain allocations in excess of the total actual emissions that result from the voluntary installation a nd operation of pollution control equipment or enhancement of operation of process equipment which results in mercury emissions reductions. Mercury allowances will be allocated only for the control period in wh ich the pollution control equipment began operating or an enhancement to the process equipment occurred. The retention of mercury allowances will not be allowed fo r pollution control projects resulting from a settlement for noncompliance with any local , state or federal regulatory proceeding. 445B.3785 Requests for mercury allowance allocations for new source allocation accounts; annual requests for certain transf ers between mercury allowance tracking system accounts; administration of certa in unallocated allowances from new source allocation accounts. (NRS 445B.210, 445B.300) 1. For each new source allocation account, the mercury designated representative of a mercury budget source shall submit, in a format specified by the Direct or, a request to the Director for mercury allowance allocations starting with cont rol period 2010 or the control period in which a new mercury budget unit comm ences commercial operation, whichever occurs later, until the first control period after the mercury budget source has established a mercury

-- 51-- Adopted Regulation R040-10baseline emission period for which the unit is allocated mercury allowances under NAC 445B.3781. The mercury allowance allocation request must be based on an 80 percent capacity factor and permitted limits for emissions. The me rcury allowance allocation request must be submitted on or before July 1 of the first control period for which the mercury allowances are requested and after the date on which the me rcury budget unit commences commercial operation. 2. In reviewing each mercury allowance allo cation requested pursuant to subsection 1, the Director shall: (a) Accept an allowance allocation request only if the request meets, or is adjusted by the Director as necessary to meet, the requirements of subsection 1. (b) Determine the sum of the mercury allowances requested in all allowance allocation requests accepted pursuant to paragraph (a) for the control peri od. If the number of mercury allowances in the new so urce allocation account is: (1) Equal to or greater than the sum of mercury allowances requested, the Director shall allocate to the mercury budget source a number of mercury allowances equal to the number requested. (2) Less than the sum of mercury allowan ces requested, the Dir ector shall allocate mercury allowances to the mercury budget source on a prorated basis, using the total gross megawatts from all eligible mercury budge t units for the prec eding control period. (c) Notify each mercury designated representa tive of a mercury budget source that submitted an allowance allocation request of the amount of merc ury allowances allocat ed for the control period to the mercury budget source for each new mercury budget unit covered by the request.

-- 52-- Adopted Regulation R040-103. On or before 15 business days before June 1, 2011, and June 1 of each year thereafter, for each mercury budget source that has been provided allocations in excess of the total actual emissions for all new mercury budget units at the mercury budget source for the preceding control period, the mercury designated representativ e shall submit a request to the Administrator to transfer from the compliance account of the mercury budget source to the LEU/IGCC allocation account the amount of allocations that exceeds actual mercury emissions from all new mercury budget units at the mercury budget source. 4. On or before 5 business days before February 28, 2011, and February 28 of each year thereafter, for each mercury budget source that has been provided allocations in an amount less than that of the total actual emissions for all new mercury budget units at the mercury budget source for the preceding control period, the Director shall submit a request to the Administrator to transfer from the special allocation account to the compliance account of the mercury budget source the amount of allocations necessary to balance the mercury budget source’s actual mercury emissions for the control period. 5. On or before October 31, 2010, and October 31 of each year thereafter, the Director shall submit a request to the Administrator to transfer the number of mercury allowances determined in paragraph (b) of subsection 2 from the new source allocation acc ount to the compliance account of each mercury budget source. 6. The Director shall not al locate mercury allowances to any mercury budget unit to cover allowances needed by the mercury budget source pursuant to 40 C.F.R. § 60.4154(d). 7. Mercury allowances not transferred pursuant to subsection 5 will accrue in the new source allocation account for cont rol periods 2010 to 2017, inclusive. On or before February 1,

-- 53-- Adopted Regulation R040-102018, the Director shall submit a request to the Administrator to transfer all remaining unallocated allowances for control periods 2010 to 2017, inclusive, to the LEU/IGCC allocation

account. 8. For control period 2018 and each year thereafter, mercury allowances not transferred pursuant to subsection 5 will accr ue in the new source allocati on account until allocated pursuant to subsection 2. 445B.3787 Distribution of mercury allowan ces from LEU/IGCC allocation accounts for mercury budget units qualifying as level I or level II mercury emission units; periodic reevaluation of LEU/IGCC allocation account emission rates. (NRS 445B.210, 445B.300) 1. The mercury designated representative of a mercury budget unit qualifying as a level I or level II mercury emission unit pursuant to the provi sions of subsection 2 may submit, in a format specified by the Director, an application to the Director requesting mercury allowances from the LEU/IGCC allocation account for ea ch qualifying mercury budget unit, on or before February 1 of the calendar year following the applicable control period. 2. The Director must accept a request for mercury allowances from the LEU/IGCC allocation account made pursuant to subsection 1 if the mercury budget unit meets the following level I or level II criteria requirements during the applicable control period:

Level I mercury budget unit For existing mercury budget units operated on the following fuels: Mercury emission rate not to exceed:

-- 54-- Adopted Regulation R040-10Bituminous coal 21 x 10-6 lb/MWh
Sub-bituminous coal with wet FGD 61 x 10-6 lb/MWh Sub-bituminous coal with dry FGD 61 x 10-6 lb/MWh For new mercury budget units operated on the following fuels:
Bituminous coal 6 x 10-6 lb/MWh
Sub-bituminous coal with wet FGD 20 x 10-6 lb/MWh Sub-bituminous coal with dry FGD 20 x 10-6 lb/MWh IGCC (coal gasification) technology 20 x 10-6 lb/MWh Level II mercury budget unit For existing mercury budget units operated on the following fuels: Mercury emission rate not to exceed:

Bituminous coal 24 x 10-6 lb/MWh
Sub-bituminous coal with wet FGD 66 x 10-6 lb/MWh Sub-bituminous coal with dry FGD 97 x 10-6 lb/MWh For new mercury budget units operated on the following fuels:
Bituminous coal 16 x 10-6 lb/MWh
Sub-bituminous coal with wet FGD 53 x 10-6 lb/MWh Sub-bituminous coal with dry FGD 78 x 10-6 lb/MWh

-- 55-- Adopted Regulation R040-103. On or before 15 business days before June 1 of the year following the applicable control period, the Director shall submit a request to the Administrator to transfer mercury allowances for the previous control period as determined in accordance with subsections 4 and 5. Emission rates must be verified through certified monitoring systems and relevant plan t records as set forth in the mercury monitoring plan pursuant to subsection 4 of NAC 445B.3767. 4. First priority for distribution of allowa nces from the LEU/IGCC allocation account must be provided to mercury budget units qualifying as level I units. The mercury allowance distribution must be based on the actual mercury emissions for th e prior control period of the qualifying level I unit. If suffi cient mercury allowances are not available in the LEU/IGCC allocation account to cover all level I allocati on requests, the Director shall prorate mercury allowances using the total gross megawatts fo r the preceding control period for all qualifying level I units. In no case will merc ury allowance distributions exceed the actual emissions of the qualifying level I mercury emission unit. 5. Mercury budget units qualifying as level II units become eligible for any remaining unallocated allowances in the LEU/IGCC allo cation account after the level I allocation distribution made pursuant to subsection 4. The me rcury allowance distribution must be based on the actual mercury emissions for the prior contro l period of the qualifying level II unit. In this subsection, if sufficient mercury allowances are not available in the LEU/IGCC allocation account to cover all leve l II allocation reque sts, the Director shall pr orate mercury allowances using the total gross megawatts for the preceding control period for all qualifying level II units. In no case will mercury allowance distributions exceed the actual emissions of the qualifying level II mercury emission unit.

-- 56-- Adopted Regulation R040-106. Any unallocated allowances remaining in the LEU/IGCC allocation account after level I and level II allocation distributions are made pursuan t to subsections 4 and 5 must be retained for the next control period. 7. The Director shall reevaluate the LEU/IGCC allocati on account emission rates, as established pursuant to subsect ion 2, to determine if the emission rates established are appropriate levels for the LEU /IGCC allocation account. The r eevaluation must be conducted following control periods 2010, 2011 and 2012, and every 3 years thereafter. 8. If the owner or operator of an existi ng mercury budget unit installs pollution control equipment which results in mercury emissi ons reductions pursuant to an action for noncompliance with any local, state or federa l requirement, that mercury budget unit will not qualify as a level I or II mercury budget unit. 9. As used in subsection 2: (a) “FGD” means flue gas desulfurization. (b) “MWh” means Megawatt hours. 445B.3789 Mercury allowances in special allo cation account: Authority of Director. (NRS 445B.210, 445B.300) 1. The Director shall allocate mercury allowances in the special allocation account in accordance with the provisions of NAC 445B.3781 to 445B.3787, inclusive. 2. The Director may auction or offer for sale any mercury allowances not otherwise allocated pursuant to subsection 1, with the pr oceeds being deposited in the State General Fund for credit to the Account for the Management of Air Quality created pursuant to NRS 445B.590.

-- 57-- Adopted Regulation R040-103. The Director shall, before determining an amount of mercury a llowances available for auction or sale pursuant to subsection 2, ma ke public and maintain on file during normal business hours for at least 30 days at 901 South Stewart Street, Suite 4001, Carson City, Nevada 89701, the proposed amount of those mercury allowa nces to enable publi c participation and

comment. 4. The Director shall: (a) Cause to be published a notic e in one or more newspapers of general circulation or in a state publication designed to give general public notice; (b) Provide written notice to persons on a ma iling list developed by the Director, including those persons who request in wri ting to be included on the list; (c) Provide notice by other means, if necessary, to ensure that adequate notice is given to the public; and (d) Establish a 30-day peri od for public participation. 5. The notice required in subsectio n 4 must include, without limitation: (a) The address and telephone number of the Division of Environmen tal Protection of the State Department of Conser vation and Natural Resources; (b) The name, address and telephone number of a person at the Division from whom interested persons may obtain additional information; (c) The date by which written comments must be submitted to the Director; and (d) A brief description of the procedures fo r public participation and the time and place of any public meeting that may be he ld, including a statement of the procedures to request a public meeting.

-- 58-- Adopted Regulation R040-106. All comments concerning the proposed am ount of mercury allowances to be made available for auction or sale for which notice to the public is required to be provided pursuant to this section must be submitted in writing to the Di rector within the time specified in the notice. The Director shall give notice of any public meeti ng scheduled pursuant to th is section at least 30 days before the meeting. The Director shall keep a record of the names of any persons who made comments and of the issues raised during the process for pu blic participation. 7. The Director shall make a final determinat ion on the amount of merc ury allowances to be made available for auction or sale after consid ering any written comments from the public and any comments made during public meetings. 8. The Director may bank for future use or permanently retire such mercury allowances. 445B.3791 Fees; late penalty. (NRS 445B.210, 445B.300) 1. The fee for a CAMR operating permit to construct or a revise d CAMR operating permit to construct is $2,000. An applicant must pay the en tire fee when he subm its the application to the Director pursuant to NAC 445B.3763 or 445B.3765. 2. The owner or operator of a mercury budge t source must submit an annual maintenance fee for each mercury budget unit. The annual maintenance fee must be determined as follows: (a) For the fiscal year ending on June 30, 2008, the fee for each mercur y budget unit must be determined in an amount, in dollars, that is equal to the amount calculated by dividing 300,000 by the total number of mercury budget units. The Director shall de termine the total number of mercury budget units to be charged pursuant to this paragraph on or before May 1, 2007. (b) For each fiscal year after the fiscal ye ar ending on June 30, 2008, the fee for each mercury budget unit must be determined in an amount, in do llars, that is equal to the amount calculated

-- 59-- Adopted Regulation R040-10--60-- Adopted Regulation R040-10 by dividing 250,000 by the total number of mercury budget units which have previously obtained a mercury operating permit to construct. The Di rector shall determine the total number of mercury budget units to be charged pursuant to th is paragraph each year on or before May 1 of the immediately preceding fiscal year. 3. The State Department of Conservation a nd Natural Resources shall collect all fees required pursuant to this section not later than July 1 of each year. 4. Except as otherwise provided in this subs ection, the owner or opera tor of a source who does not pay the annual fee installments within 30 days after the date on which payment becomes due will be assessed a late penalty in the amount of 25 percent of the amount of the fees due. The late penalty must be paid in addition to the annual fees. The late pena lty set forth in this subsection does not apply if, at the time that th e late fee would otherwis e be assessed, the owner or operator is in negotiations with th e Director concerning the annual fees.