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; repealing provisions governing 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 terms 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 standards for ambient air established in NAC 445B.22097; 

 (b) Provided in the applicable implementation 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 adopted pursuant to 42 U.S.C. §§ 7651 to 7651o, 

inclusive; 

 (e) For enhanced monitoring or for compliance 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 stratospheric ozone adopted pursuant to 42 U.S.C. §§ 7671 to 7671q, 

inclusive, unless the Administrator determines that 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 operator 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 R040-10 
 445B.037 “Class II source” means any stationary source which is not subject to the 

requirements of 42 U.S.C. §§ 7661 to 7661f, inclusive, 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 operating under a Class III operating 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 source 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 PM10, NOx, SO2, VOC and H2S;

 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 ignition 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 R040-10 
 9. 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 avoid the requirements of 40 C.F.R. Part 63; or 

 (b) Is not required to obtain an operating permit to operate the 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 permit. The averaging time and test procedures 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 appropriate 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 meaning ascribed to it in NRS 445B.145. Unless 

otherwise specifically stated, 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 construct, as defined in NAC 445B.3625 . [; and

4. A CAMR operating permit to construct, as defined in NAC 445B.3713.]

--4-- 

Adopted Regulation R040-10 
 Sec. 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 representative of such a person who is responsible 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 other public agency, a ranking elected official or a 

principal executive officer, including, for a federal 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 representative or his alternate, 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 mercury 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 all buildings, structures, facilities and 

installations, including temporary 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 primary operations of the stationary source are part 

of the stationary source, except that temporary construction activities, 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 written notice by the Director served on a person or persons 

requiring such persons to cease the activity that the Director, pursuant 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 permit. 

 Sec. 11. NAC 445B.200 is hereby amended to read as follows: 

--6-- 

Adopted Regulation R040-10 
 445B.200 “Violation” means a failure to comply with any of the provisions of NAC 

445B.001 to [445B.3791,] 445B.3689, inclusive, any applicable requirement 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 meanings: 

BART ....................................................... Best available retrofit technology 

Btu ............................................................ British thermal unit 

C.F.R. ....................................................... Code of Federal Regulations 

CO2........................................................... carbon dioxide 

F .............................................................. degree Fahrenheit 

Hg ............................................................. mercury 

H2S ........................................................... hydrogen sulfide 

lb............................................................... pound 

NO ............................................................ nitric oxide 

NOx .......................................................... nitrogen oxides 

O2 ............................................................. oxygen 

ppm........................................................... parts per million 

SO2 ........................................................... sulfur dioxide 

VOC ......................................................... volatile organic compound 

--7-- 

Adopted Regulation R040-10 
 Sec. 13. NAC 445B.220 is hereby amended to read as follows: 

 445B.220 If any of the provisions of NAC 445B.001 to [445B.3791,] 445B.3689, inclusive, 

or any application thereof to any person, thing or circumstance is held invalid, it is intended that 

such invalidity not affect the remaining provisions, or their application, that can be given effect 

without the invalid provision or application. 

 Sec. 14. NAC 445B.22077 is hereby amended to read as follows: 

 445B.22077 Any portion of any affected facility not listed in NAC 445B.2208 must comply 

with the remaining portions 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 adopted 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 adopted 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 R040-10 
NN, PP, QQ, RR, SS, TT, UU, VV, VVa, WW, XX, BBB, DDD, FFF, GGG, GGGa, HHH, III, 

JJJ, KKK, LLL, NNN, OOO, PPP, QQQ, RRR, SSS, TTT, UUU, VVV, WWW, AAAA, CCCC, 

DDDD, EEEE, FFFF, IIII, JJJJ and KKKK as they 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 pages 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 reference 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, QQQ, RRR, TTT, UUU, 

VVV, XXX, AAAA, CCCC, DDDD, EEEE, FFFF, GGGG, HHHH, IIII, JJJJ, KKKK, MMMM, 

NNNN, OOOO, PPPP, QQQQ, RRRR, SSSS, TTTT, UUUU, VVVV, WWWW, XXXX, 

YYYY, ZZZZ, AAAAA, BBBBB, CCCCC, DDDDD, EEEEE, FFFFF, GGGGG, HHHHH, 

JJJJJ, KKKKK, LLLLL, MMMMM, NNNNN, PPPPP, QQQQQ, SSSSS, WWWWW, YYYYY, 

ZZZZZ, DDDDDD, EEEEEE, FFFFFF, GGGGGG, LLLLLL, MMMMMM, NNNNNN, 

--9-- 

Adopted Regulation R040-10 
OOOOOO, PPPPPP, QQQQQQ, RRRRRR, 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 Environmental Commission and was filed with the 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 Environmental Commission and was filed with 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, section 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 hereby 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 contain 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 International are hereby adopted by reference: 

 (a) ASTM D5504, “Standard Test Method for Determination of Sulfur Compounds in 

Natural Gas and Gaseous Fuels by Gas Chromatography 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 Practice 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 Preparing 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 Elemental, Oxidized, Particle-Bound and Total 

Mercury in Flue Gas Generated from Coal-Fired Stationary Sources (Ontario Hydro Method),” 

set forth in Volume 11.07 of the 2008 Annual Book of ASTM Standards. A copy of ASTM 

--11-- 

Adopted Regulation R040-10 
D6784 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. 

 (e) ASTM D2015, “Standard Test Method for Gross 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 Inverness Way East, M/S A110B, Englewood, Colorado, 

80112, or at the Internet address http://global.ihs.com, for the price of $52. 

 (f) ASTM D3286, “Standard Test Method for Gross 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 Inverness Way East, M/S A110B, Englewood, Colorado, 

80112, or at the Internet address http://global.ihs.com, for the price of $52. 

 (g) ASTM D1989, “Standard Test Method for Gross Calorific Value of Coal and Coke by 

Microprocessor Controlled Isoperibol Calorimeters,” dated July 10, 1997. A copy of ASTM 

D1989 is available for purchase at the IHS Standards Store, 15 Inverness Way East, M/S A110B, 

Englewood, Colorado, 80112, or at the Internet address http://global.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 section, the Director may not approve alternate or equivalent test 

methods or alternative standards or work practices. 

 17. Except as otherwise provided in subsections 10 and 11, the provisions adopted by 

reference in this section supersede 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 R040-10 
the State Environmental Commission and was filed with the Secretary of State on April 23, 

2009, for all stationary sources subject to the provisions adopted by reference only if those 

requirements adopted by reference are more stringent. 

 18. For the purposes of this section, “administrator” as used in the provisions of 40 C.F.R. 

Part 60, except Subpart B § 60.21 and Subpart 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 source of air pollution unless the control equipment for air pollution 

which is required by applicable requirements or conditions of the permit is installed and 

operating. 

 2. Disconnect, alter, modify or remove any of the control equipment for air pollution or 

modify any procedure required by an applicable 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 pollutants prohibited by NAC 445B.001 to [445B.3791,]

445B.3689, inclusive, must be approved in advance by the Director and performed during a time 

designated by the Director as being favorable 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 R040-10 
emissions of regulated air pollutants prohibited by NAC 445B.001 to [445B.3791,] 445B.3689, 

inclusive. The scheduled maintenance or testing must not be conducted unless the scheduled 

maintenance or testing is approved 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 prohibited by NAC 445B.001 to [445B.3791,] 445B.3689, inclusive. The 

scheduled repairs must not be conducted unless the scheduled repairs are approved pursuant to 

subsection 1. 

 4. Each owner or operator shall notify the Director of any excess emissions within 24 hours 

after any malfunction or upset of the process equipment or equipment for 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 which results in excess emissions, sufficient 

information to enable the Director to determine 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 emissions expressed in opacity or in the units of 

the applicable limitation on emission and the operating data and methods used 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 were 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 controlling air pollution, process equipment or 

processes were at all times maintained and operated, 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 provided 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 from the submission of data and information 

required in subsection 5 of NAC 445B.232 or other information 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 igniter 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 period of excess emissions violates NAC 445B.001 

to [445B.3791,] 445B.3689, inclusive. 

3. Nothing in this section limits the obligation of the owner or operator 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 institute actions under sections 113 and 303 of the 

Act or to exercise his authority 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 operating permit or similar class of 

permits, the Director may either conduct or order the owner of any stationary 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 and the results submitted to the Director within 60 

days after achieving the maximum rate of production 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 test 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 reference method with minor changes 

in methodology; 

 (b) Approves the use of an equivalent method; 

 (c) Approves the use of an alternative method, the results of which he has determined to be 

adequate for indicating whether a specific stationary source is in compliance; or 

 (d) Waives the requirement for tests of performance because the owner 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 under such conditions as the Director specifies 

to the operator of the plant based on representative performance of the affected facility. The 

owner or operator shall make available to the Director such records as may be necessary to 

determine the conditions of the test of performance. Operations during periods of start-up, 

shutdown and malfunction must not constitute representative conditions of a test of performance 

unless otherwise specified in the applicable standard. 

 4. The owner or operator of an affected facility shall give notice to the Director 30 days 

before the test of performance to allow the Director to have an observer 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 Director to review the proposed 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 conducted 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 the runs apply. In the event of forced shutdown, 

--17-- 

Adopted Regulation R040-10 
failure of an irreplaceable portion of the sampling train, extreme meteorological conditions or 

other circumstances with less than three valid samples being obtained, compliance may be 

determined using the arithmetic mean of the results of the other two runs upon the Director’s 

approval. 

 6. All testing and sampling will be performed in accordance with recognized methods and 

as specified by the Director. 

 7. The cost of all testing and sampling and the cost of all sampling holes, scaffolding, 

electric power and other pertinent allied facilities as may be required 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 testing and sampling must be certified as to their 

truth and accuracy and as to their compliance with all provisions of these regulations, and copies 

of these results must be provided to the Director no later than 60 days after the testing or 

sampling, or both. 

 9. Notwithstanding the provisions of subsection 2, the Director shall not approve an 

alternative method or equivalent method to determine 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 testing 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 R040-10 
 445B.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 systems required under applicable provisions of those sections. 

 2. All continuous monitoring systems and monitoring devices must be installed and 

operational before conducting performance tests under NAC 445B.252. Verification of 

operational status must, as a minimum, consist of the following: 

 (a) For continuous monitoring systems referred 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 all 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 averages must be computed from four or more 

data points equally spaced over each 1-hour period. 

 3. Data recorded during periods of system breakdowns, repairs, calibration checks, and zero 

and span adjustments must not be included in the data averages computed under this section. An 

--19-- 

Adopted Regulation R040-10 
arithmetic or integrated average of all calibrated data must be used. The data output of all 

continuous monitoring systems may be recorded in reduced or nonreduced form, e.g., ppm 

pollutant and percent O2 or lb/million Btu of pollutant. 

 4. All excess emissions must be converted into units of the standard using the applicable 

conversion procedures specified in NAC 445B.001 to [445B.3791,] 445B.3689, inclusive. After 

conversion into units of the standard, the data may 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 may continue to operate under the provisions of their approved compliance 

schedules, which may be amended from time to time. 

 2. Compliance schedules must contain specific progress steps that will be taken toward 

achieving compliance. 

 3. The Commission may require periodic reports 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 schedule is an unreasonable delay and subjects the 

operator of the stationary source to administrative fines as provided in NAC 445B.281. 

--20-- 

Adopted Regulation R040-10 
 4. 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 permit 

constitutes a violation. As required by NRS 445B.450, the Director shall issue 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 stationary source in accordance with the application for an operating 

permit as approved by the Director; 

 (c) Failure to construct or operate a stationary source in accordance with any condition of an 

operating permit; 

 (d) Commencing construction or modification of a stationary source without applying for and 

receiving an operating permit or a modification of an operating permit as required by NAC 

445B.001 to 445B.3497, inclusive, or a mercury operating permit to construct as required by 

NAC 445B.3611 to 445B.3689, inclusive; 

 (e) Failure to comply with any requirement 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 R040-10 
 2. The written notice must specify the provision of NAC 445B.001 to [445B.3791,]

445B.3689, inclusive, the condition of the operating permit or the applicable requirement 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 registered or certified mail to the last known address of the person. 

 Sec. 24. NAC 445B.277 is hereby amended to read as follows: 

 445B.277 1. The Director shall issue a stop order if: 

 (a) The proposed construction, installation, alterations or establishment will not be in 

accordance with the provisions of the plans, specifications 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 [445B.3791,] 445B.3689, 

inclusive, any applicable requirement or any condition of the operating permit. 

 3. A person served with a stop order: 

 (a) Shall immediately stop all activities specified in the stop order. 

 (b) May apply for its revocation 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 R040-10 
If the Director finds that the reasons for the issuance of the stop order still exist, or that other 

reasons exist for continuing a stop order in effect, 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 provisions of those sections is classified as a major violation, and a 

fine up to $10,000 per day per violation may be levied. 

 2. For Class II and Class III sources, 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 445B.265, paragraph (e) of subsection 1 of NAC 445B.275 and 

NAC 445B.331 are classified as minor or lesser violations, unless there are four or more 

violations of any one of those sections by a person, occurring within a period of 60 consecutive 

months. 

 3. The schedule of fines for minor 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 R040-10 
 First 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 subsection 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 provided 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 before the stationary source may be 

modified; or 

--24-- 

Adopted Regulation R040-10 
 (2) A revision of the operating permit to construct 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 source, a revision of the operating permit or the permit 

to construct is required pursuant to the requirements of NAC 445B.3465 before the stationary 

source may be modified. 

 (c) If a stationary source is a Class III source, 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 more thermal units that emit mercury, the owner or 

operator of a thermal unit that emits mercury shall 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 budget 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 provisions 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 becomes subject to a standard or other requirement 

under 42 U.S.C. § 7411 or 7412, the Administrator will determine whether to exempt the source 

from the requirement to obtain a Class I operating permit at the time that the new standard is 

adopted. 

--25-- 

Adopted Regulation R040-10 
 3. An operating permit, operating permit to construct or permit to construct may not be 

transferred from one owner or piece of equipment to another. An owner or operator may apply 

for an administrative amendment reflecting a change of ownership or the name 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 meaning 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 stationary 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 R040-10 
 445B.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 determines that the application is complete.

 Sec. 28. NAC 445B.305 is hereby amended to read as follows: 

 445B.305 The Director may impose standards for 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 operating permit for the proposed stationary source. 

 Sec. 29. NAC 445B.325 is hereby amended to read as follows: 

 445B.325 1. [Except as otherwise provided in subsection 2, a] A Class I operating permit 

must be reopened and revised to incorporate any additional applicable requirement 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 shall comply with the provisions of NAC 445B.3711 

to 445B.3791, inclusive. As used in this subsection:

(a) “Mercury budget unit” has the meaning ascribed to it in NAC 445B.3739.

(b) “Operator” has the meaning ascribed 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 determines that the operating permit, as written, does 

not ensure compliance with all applicable requirements; or 

 (c) The Director determines that there has been a violation of any of the provisions of NAC 

445B.001 to [445B.3791,] 445B.3689, inclusive, any applicable requirement, or any condition 

contained in the operating permit. 

[4.] 3. The Director shall notify the holder of the operating permit at least 30 days before he 

terminates, reopens and revises, revises, or revokes and reissues the operating permit. The notice 

must be made by certified mail and must contain 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 permit that 

cause exists to reopen the operating permit, the Director shall forward to the Administrator a 

proposed determination of the reopening and revision, the revision of, or the revocation and 

reissuance of the operating permit within 90 days 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 permit for which cause exists. 

--28-- 

Adopted Regulation R040-10 
[7.] 6. The reopening of an operating permit pursuant to this section must comply with all 

of the relevant requirements for the issuance or revision of a permit, including 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 revoked 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.3791,] 445B.3689, inclusive, or the provisions of 40 

C.F.R. § 52.21, or 40 C.F.R. Part 60 or 61, Prevention of Significant Deterioration, New Source 

Performance Standards, and National Emission Standards for Hazardous Air Pollutants, adopted 

by reference in NAC 445B.221. 

 3. The revocation is effective 10 days after the 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 stationary 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 permit pursuant to NAC 445B.001 to [445B.3791,] 445B.3689, 

inclusive; and

(b) If the owner or operator of the Class I stationary 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 with the provisions set forth in NAC 445B.3611 to 

445B.3689, inclusive . [; and

(c) If the owner or operator of the Class I stationary 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 applicability limitation pursuant to NAC 445B.001 to [445B.3791,]

445B.3689, inclusive. To revise or renew a Class I operating permit 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 applicability limitation pursuant to NAC 445B.001 to [445B.3791,] 445B.3689, 

inclusive. 

3. Except as otherwise provided in subsection 5, if an owner or operator obtains an 

operating permit to construct, the owner or operator is not required to obtain an operating permit 

--30-- 

Adopted Regulation R040-10 
or revised operating permit before commencing initial construction, start-up and operation of the 

proposed new Class I stationary source or the modification to the existing Class I stationary 

source. 

 4. Except as otherwise provided in this subsection 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 existing Class I stationary source under 

that operating permit to construct if the owner or operator submits a complete application for a 

Class I operating permit within 12 months after the date of initial 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 permit 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 existing Class I stationary source and the owner or operator is not 

seeking to revise the Class I operating permit at the Class I stationary source pursuant to 

subparagraph (2) of paragraph (a) of subsection 1, the owner or operator must concurrently: 

 (a) For the construction or change in operation of the existing Class I stationary source: 

 (1) Obtain a Class I operating permit to construct; or 

 (2) If the construction or change in operation involves mercury emissions from a thermal 

unit that emits mercury, obtain a mercury operating 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 R040-10 
NAC 445B.3441 before commencing with the construction 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 thermal unit that emits mercury which is located at an existing Class I stationary 

source if the owner or operator submits a complete application to revise 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 owner or operator may continue to operate the 

mercury budget unit located at an existing Class I stationary source:

(1) If the owner or operator of an existing 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 mercury budget unit submits a complete application 

at the time the owner or operator is required to file the initial Class I operating permit 

application.]

 7. As used in this section: 

 (a) [“CAMR operating permit to construct” has the meaning ascribed to it in NAC 

445B.3713.

(b) “Existing mercury budget unit” 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 meaning 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 ascribed 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 context otherwise requires, the words and terms defined in 

NAC 445B.3713 to 445B.3763, inclusive, have the meanings ascribed to them in those sections. 

--33-- 

Adopted Regulation R040-10 
445B.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,” abbreviated as “CAMR operating permit to construct,” 

means a legally binding document that is issued by the Director pursuant to NAC 445B.3769, 

including, without limitation, a permit revision, specifying the requirements of the mercury 

budget trading program which 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 designated 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 reference 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 R040-10 
445B.3723 “Existing mercury budget unit” defined. (NRS 445B.210, 445B.300) 

“Existing mercury budget unit” means a mercury budget unit that commenced construction or 

reconstruction on or before January 30, 2004. 

445B.3725 “Low emitting unit/Integrated gasification 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 mercury 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 defined 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 system 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 period” defined. (NRS 445B.210, 445B.300) 

“Mercury baseline emission period” means a period of operation of a new mercury budget unit 

of 36 consecutive months determined from measured 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 R040-10 
445B.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 program” 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 representative” defined. (NRS 445B.210, 445B.300) 

“Mercury designated representative” means an “Hg 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 mercury allowance tracking system account for a 

mercury budget unit that has not established a mercury baseline emission period. 

--36-- 

Adopted Regulation R040-10 
445B.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 account” defined. (NRS 445B.210, 445B.300) “Special 

allocation account” means a mercury allowance tracking system account in which mercury 

allowances that are not otherwise allocated 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 construct: Duties of owner or operator of 

mercury budget source. (NRS 445B.210, 445B.300) In addition to obtaining 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 mercury budget source that has a new mercury budget unit or existing 

mercury budget unit shall: 

--37-- 

Adopted Regulation R040-10 
 1. Submit to the Director, on a form provided by the Director, an application for a CAMR 

operating permit to construct for the mercury budget 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 construct: 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 Director, 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 construct: 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 applicant, 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 name 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 manager of the mercury budget source or another 

appropriate person to contact; 

 2. An identification of each mercury budget unit located at the mercury budget source; 

--38-- 

Adopted Regulation R040-10 
 3. The location of any records that the applicant must keep, in accordance with the 

requirements of the CAMR operating permit to construct and in accordance with paragraph (r) of 

subsection 2 of NAC 445B.3771, if the records are 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 construct: Action by Director on applications. 

(NRS 445B.210, 445B.300) 

 1. Within 30 days after the date of receipt of an application 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 complete. If substantial additional information is 

required, the Director shall determine that the application is incomplete and return the 

application to the applicant. If substantial additional 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 Director determines that the application is complete 

or the 31st day after the date of receipt, whichever 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 requirements set forth in NAC 445B.3711 to 445B.3791, 

--39-- 

Adopted Regulation R040-10 
inclusive. The applicant must provide in writing any additional information 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 application 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 operating permit to construct. 

445B.3771 CAMR operating permit to construct: 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 construct for the mercury budget unit must contain the 

following conditions: 

 (a) Each of the conditions and requirements of the CAMR operating permit to construct is 

severable, and if any is held invalid, the remaining 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 constitutes a violation and is a 

ground for: 

 (1) An action for noncompliance; 

--40-- 

Adopted Regulation R040-10 
 (2) The revoking and reissuing, or the terminating, of the CAMR operating permit to 

construct by the Director; or 

 (3) The reopening or revising of the CAMR operating permit to construct 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 defense to noncompliance with any condition of the 

CAMR operating permit to construct. 

 (d) The Director may revise, revoke and reissue, reopen or terminate the CAMR operating 

permit to construct for cause. 

 (e) The CAMR operating permit to construct 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 CAMR operating permit to 

construct. 

 (h) The holder of the CAMR operating permit to construct shall allow the Director or any 

authorized representative of the Director, 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 related to the mercury budget unit is conducted; or 

 (III) Records are kept pursuant 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 CAMR operating permit to construct; 

 (3) Inspect, at reasonable times, any facilities, practices, operations or equipment, 

including, without limitation, any equipment for monitoring or controlling air pollution, 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 operating permit to construct or applicable 

requirements. 

 (i) A mercury designated representative of the mercury budget source shall certify that, based 

on information and belief formed after a reasonable inquiry, the statements made in any 

document required to be submitted pursuant to any condition of the CAMR operating permit to 

construct are true, accurate and complete. 

 (j) The owners and operators, and the mercury 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 requirements 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 set 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 mercury 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 the 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 deducted 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, deducted from or transferred into or among mercury 

allowance tracking system accounts in accordance with 40 C.F.R. §§ 60.4160, 60.4161 and 

60.4162. 

 (o) A mercury allowance is a limited authorization to emit 1 ounce of mercury in accordance 

with the mercury budget trading program. No provision 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 terminate or limit such authorization. 

--43-- 

Adopted Regulation R040-10 
 (p) Upon recordation by the Administrator pursuant to 40 C.F.R. §§ 60.4150 to 60.4162, 

inclusive, every allocation or transfer of a mercury allowance to or deduction of a mercury 

allowance from the compliance account of a mercury 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 mercury budget source and each mercury budget unit 

at the mercury budget source shall surrender the mercury allowances required for deduction 

pursuant to 40 C.F.R. § 60.4154(d)(1) and pay any fine, penalty or assessment or comply with 

any other remedy imposed, for the same violation 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, Subpart HHHH, the Act and applicable state law. 

 (r) Unless otherwise provided, the owners and operators of the mercury budget source and 

each mercury budget unit at the mercury budget source shall keep on-site at the mercury budget 

source each of the documents described in subparagraphs (1) to (4), inclusive, for a period of 5 

years after the date on which the document is created. This period may be extended for cause, at 

any time before the end of the 5-year period, in writing by the Director or the Administrator. The 

owners and operators of the mercury budget source 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 mercury budget source and each mercury budget unit 

at the mercury budget source and documents that demonstrate the truth of the statements in the 

certificate of representation, provided that the certificate and documents must be retained on-site 

at the mercury budget source beyond the 5-year period 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 information 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 certifications 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 complete 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 requirements 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, those reports required pursuant to 40 C.F.R. §§ 

60.4170 to 60.4175, inclusive. 

 (t) Each mercury budget source and each mercury budget unit at the mercury budget source 

must meet the requirements of the mercury budget trading program regarding liability, including, 

without limitation, that: 

--45-- 

Adopted Regulation R040-10 
 (1) Any provision of the mercury budget trading program that applies to a mercury budget 

source or the mercury designated representative of a mercury budget 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 trading program that applies 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 trading 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 mercury budget source or mercury budget unit at the 

mercury budget source from compliance with any other provision of the applicable state 

implementation plan, a federally enforceable permit or the Act. 

 (v) The owner or operator of the mercury 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 the 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 subsection, if construction will 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 after 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 R040-10 
initiated. 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 than one phase, the projected date of the 

commencement of construction of each phase of construction must be approved by the Director. 

Except as otherwise provided in this subsection, a CAMR operating permit to construct expires if 

the initial phase of construction is not commenced within 18 months after the projected date of 

the commencement of construction approved by the 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 allocations of mercury allowances 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 control period thereafter, is 0.112 tons (3584 

ounces/allowances) per 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 allowance 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 R040-10 
 1. 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 certain mercury allowance tracking system 

accounts; notification of Administrator of allocation distribution for each control period. 

(NRS 445B.210, 445B.300) 

 1. The Director shall establish the mercury allowance tracking system accounts as follows: 

 (a) For a new source allocation account: 

 (1) For control periods 2010 to 2017, inclusive, 800 mercury allowances; and 

 (2) For control period 2018 and each control period thereafter, 112 mercury allowances. 

 (b) For a LEU/IGCC allocation account: 

 (1) For control periods 2010 to 2017, inclusive, 3,200 mercury allowances; and 

 (2) For control period 2018 and each control period thereafter, 112 mercury allowances. 

 (c) For a special allocation account, for control period 2010 and each control period 

thereafter, all allowances not otherwise allocated pursuant to paragraphs (a) and (b) and NAC 

445B.3781. 

 2. The Director shall notify the Administrator 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 R040-10 
 1. For control periods 2010, 2011 and 2012, the 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 megawatts output achieved by each mercury budget 

unit for control periods 2003, 2004 and 2005; and 

 (c) The corresponding capacity factor for the year determined from paragraph (b), as reported 

to the Public Utilities Commission of Nevada. 

 2. For control period 2013 and each control period thereafter, the Director shall determine 

the mercury allowance allocation for each mercury budget unit that commenced operation before 

January 1, 2001, and any other mercury budget unit that has established a mercury baseline 

emission period, based on actual mercury emissions 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 prorated with other mercury budget units that have 

established a mercury baseline emission period using the total gross megawatts for the preceding 

36-month period of operation. 

--49-- 

Adopted Regulation R040-10 
 4. The Director shall not allocate mercury allowances to any mercury budget source or 

mercury budget unit that is permanently retired and that is exempted under 40 C.F.R. § 

60.4105(a), or which has an expired CAMR 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, for each mercury budget source that has been 

provided allocations in excess of the total actual 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 allocation 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 has been allocated mercury allowances in an 

amount less than that of the total actual emissions for all 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 mercury allowances necessary to balance the mercury 

budget source’s actual mercury emissions for the control period. If the amount of mercury 

--50-- 

Adopted Regulation R040-10 
allowances in the special allocation account is less than the balance necessary to equal the actual 

mercury emissions from all the mercury budget sources for the control period, the Director shall 

prorate mercury allowances using the total gross megawatts from all eligible mercury budget 

units for the control period. 

 3. The Director shall not allocate 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 and 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 which the pollution control 

equipment began operating or an enhancement to the process equipment occurred. The retention 

of mercury allowances will not be allowed for 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 transfers between mercury allowance tracking 

system accounts; administration of certain 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 Director, a request to the 

Director for mercury allowance allocations starting with control period 2010 or the control 

period in which a new mercury budget unit commences commercial operation, whichever occurs 

later, until the first control period after the mercury budget source has established a mercury 

--51-- 

Adopted Regulation R040-10 
baseline 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 mercury 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 mercury budget unit commences commercial operation. 

 2. In reviewing each mercury allowance allocation 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 period. If the number of mercury 

allowances in the new source 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 allowances requested, the Director shall allocate 

mercury allowances to the mercury budget source on a prorated basis, using the total gross 

megawatts from all eligible mercury budget units for the preceding control period. 

 (c) Notify each mercury designated representative of a mercury budget source that submitted 

an allowance allocation request of the amount of mercury allowances allocated for the control 

period to the mercury budget source for each new mercury budget unit covered by the request. 

--52-- 

Adopted Regulation R040-10 
 3. 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 representative 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 account to the compliance 

account of each mercury budget source. 

 6. The Director shall not allocate 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 control periods 2010 to 2017, inclusive. On or before February 1, 

--53-- 

Adopted Regulation R040-10 
2018, 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 accrue in the new source allocation account until allocated pursuant 

to subsection 2. 

445B.3787 Distribution of mercury allowances 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 provisions 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 each 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 R040-10 
Bituminous 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 R040-10 
 3. 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 plant records as set forth 

in the mercury monitoring plan pursuant to subsection 4 of NAC 445B.3767. 

 4. First priority for distribution of allowances 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 the prior control period of the 

qualifying level I unit. If sufficient mercury allowances are not available in the LEU/IGCC 

allocation account to cover all level I allocation requests, the Director shall prorate mercury 

allowances using the total gross megawatts for the preceding control period for all qualifying 

level I units. In no case will mercury 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 allocation account after the level I allocation 

distribution made pursuant to subsection 4. The mercury allowance distribution must be based on 

the actual mercury emissions for the prior control 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 level II allocation requests, the Director shall prorate 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 R040-10 
 6. Any unallocated allowances remaining in the LEU/IGCC allocation account after level I 

and level II allocation distributions are made pursuant to subsections 4 and 5 must be retained for 

the next control period. 

 7. The Director shall reevaluate the LEU/IGCC allocation account emission rates, as 

established pursuant to subsection 2, to determine if the emission rates established are 

appropriate levels for the LEU/IGCC allocation account. The reevaluation must be conducted 

following control periods 2010, 2011 and 2012, and every 3 years thereafter. 

 8. If the owner or operator of an existing mercury budget unit installs pollution control 

equipment which results in mercury emissions reductions pursuant to an action for 

noncompliance with any local, state or federal 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 allocation 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 proceeds 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 R040-10 
 3. The Director shall, before determining an amount of mercury allowances available for 

auction or sale pursuant to subsection 2, make 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 allowances to enable public participation and 

comment.

4. The Director shall: 

 (a) Cause to be published a notice 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 mailing list developed by the Director, including 

those persons who request in writing 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 period for public participation. 

 5. The notice required in subsection 4 must include, without limitation: 

 (a) The address and telephone number of the Division of Environmental Protection of the 

State Department of Conservation 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 for public participation and the time and place of 

any public meeting that may be held, including a statement of the procedures to request a public 

meeting. 

--58-- 

Adopted Regulation R040-10 
 6. All comments concerning the proposed amount 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 Director within the time specified in the notice. 

The Director shall give notice of any public meeting scheduled pursuant to this 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 public participation. 

 7. The Director shall make a final determination on the amount of mercury allowances to be 

made available for auction or sale after considering 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 revised CAMR operating permit 

to construct is $2,000. An applicant must pay the entire fee when he submits the application to 

the Director pursuant to NAC 445B.3763 or 445B.3765. 

 2. The owner or operator of a mercury budget 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 mercury 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 determine 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 year ending on June 30, 2008, the fee for each mercury 

budget unit must be determined in an amount, in dollars, 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 Director shall determine the total number of 

mercury budget units to be charged pursuant to this paragraph each year on or before May 1 of 

the immediately preceding fiscal year. 

 3. The State Department of Conservation and 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 subsection, the owner or operator 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 penalty set forth in this 

subsection does not apply if, at the time that the late fee would otherwise be assessed, the owner 

or operator is in negotiations with the Director concerning the annual fees.