State of Nevada



## Dept. ofConservation & Natural Resources 

# State Environmental ommission SEC.nv.gov 901 South Stewart Street, SuIte 4001, Carson City, Nevada 89701

Summary Minutes of the STATE ENVIRONMENTAL COMMISSION (SEC) Meeting of December 4, 2013 10:00 AM Bryan Building Carson City 901 South Stewart Street Carson City, NV

Members Present: Members Absent: E. Jim Gans, Chairman Frances Barron Pete Anderson Jim Barbee Tom Porta Kathryn Landreth Cary Richardson MarkTurner Tony Wastey SEC Staff Present: Jason King Rose Marie ReynoLds, SEC/DAG Rich Perry Valerie King, Executive Secretary Misti Gower, Recording Secretary
BEGIN SUMMARY MINUTES The meeting was caLLed to order at 10:15 am by Chairman Jim Gans who confirmed the hearing was property noticed and that there was a quorum present. Chairman Gans aLso weLcomed Rich Perry to the SEC. Commissioner Perry is the newAdministratorfor the Division of Minerals.
1) Public Comments (Discussion): Chairman Gans caLled for public comment. ALLen Biaggi, representing the Nevada Mining Association, came forth to address the Commission. Mr. Biaggi recognized that item 5 wouLd be puLLed from the agenda butwanted the Commission to know that NMA believed the regulation was eLegantLy prepared by NDEP and extremeLy consistent with statutory requirement AB346 of the 2013 Nevada Legislation. NMAwould be working with NDEP and hoped to bring this item in front of the Commission at the next SEC meeting.
2) Approval ofAgenda (Action Item): Chairman Gans asked if there were any changes or comments regarding the agenda. Executive Secretary, VaLerie King, informed the Commission that item 5, a regulatory petition from the Bureau of Mining Regulation ft Reclamation and items 7 and 8, reguLatory petitions from the Bureau ofWaste Management had been puLLed from the agenda. CommissionerTurner moved to approve the agenda and Commissioner Porta seconded; the agenda was approved with changes. 1 Minutes of State EnvironmentaL commission ReguLatory Meeting

- December4, 2013Chairman Gans asked Dr. CotLeen Cripps, Administrator of NDEP, if she wouLd Like to add anything

to Mr. Biaggi’s comments regarding Agenda Item 5. Dr. Cripps expLained NDEP has been working with the LegisLative CounciL Bureau (LCB) on the Language. LCB recentLy expressed there was question about the legisLative intent and howthe drafted reguLation comported with that. NDEP’s intent is to bring it back to the Commission.
3) Approval ofthe minutes forthe October 9, 2013 SEC meetings (Action Item): Chairman Gans requested comments from the Commission on the October meeting minutes. Commissioner Porta feLt a statement he made regarding the waiver that was granted to CLark Countywas not cLear. The state impLementation pLan was not affected by the waiver. ALso his Last name was misspeLLed in severaL pLaces. Mr. Bamford, Bureau Chief forAir PoLLution ControL, presented a handout (Attachment I) to the Commission with corrections he feLt shouLd be made to the minutes. Commissioner Anderson moved to approve the minutes as amended and CommissionerTurner seconded; motion passed with Commissioner Perry abstaining.
4) PenaltyAssessments forAir QualityViolations

- (Action Item): Mr. Rob Bamford, Bureau Chief for Air PoLLution, and Mr. Francisco Vega presented the vioLations to the Commission. A. NV Energy, Reid Gardner Generating Station

— NOAV No. 2452, alLeged failure to comply with a permitted emission Limit during a compLiance source test. The Recommended penalty amount is $11,255.00. B. EL Sueno Resort and Casino

- NOAV No. 2165, aLleged failure to apply for and obtain an Air QuaLity Operating Permit. The Recommended penalty amount is $1,450.00. C. GaLtar LLC

- NOAV No. 2141, aLLeged failure to appLy for and obtain an Air Quality Operating Permit. The Recommended penaLty amount is $10,500.00

NV Energy: Mr. Bamford informed the Commission that a representative from NV Energy, Starla Lacy, had pLanned to attend the meeting but the weather prevented it. However she had sent a Letter to the Commission. (Attachment II) Mr. Bamford explained that NV Energy had self-reported the emission Limit during the test in accordance with the NAC. After a seLf-shutdown and maintenance review, NV Energy retested the unit and demonstrated compLiance. Even though the stackfaiLed its test, it never exceeded the public health standard. Motion: Commissioner King moved to accept NDEP’s recommended fine of $11,255.00 forAir QuaLityViolation No. 2452. Commissioner Porta seconded the motion and it passed unanimousLy.

El Sueno Resort and Casino: NOAV No. 2454 was issued for failure to appLy for an Air QuaLity Operating Permit. It was discovered by an enforcement office that over five acres of land had been disturbed. The company did appLy for a permit but NDEP understands that the casino is no Longer being buiLt. This is a Legacy appeaL the SEC dismissed during its Last meeting and NDEP is required to pursue the penaLty to fuLfiLL the statutory and reguLatory requirements. 2 Minutes of State EnvironmentaL Commission ReguLatory Meeting December4, 2013Motion: Commissioner Porta moved to approve the recommended fine of $1,450.00 forAir QuaLity

VioLation No. 2165. CommissionerTurner seconded the motion and it passed unanimously.

Galtar LLC: This is also a legacy appeal. GaLtar LLC was a mine and milL project. The company disturbed over five acres of land without a permit. During the penaLty conference it was discovered they had actualLy disturbed over 200 acres. NOAV No. 2141 was issued. To the best of NDEP’s knowledge, Gattar LLC is dissolved but, again, NDEP is required to pursue the penalty. Motion: Commissioner King made a motion to accept the penalty of $10,500.00 forAir QuaLity Violation No. 2141, CommissionerAnderson seconded the motion and it passed unanimously.
6) R093-1 3 Standards forWater Quality: (Action Item) Kathy Sertic, Bureau Chief forWater QuaLity PLanning, and John Heggeness presented the regulation change to the Commission. The proposed changes to NAC 445A would remove the State’s water quaLity standards from water bodies or portions ofwater bodies on Federal Indian Reservations. Mr. Heggeness gave a handout to the Commissioners (Attachment III) and expLained that NDEP began removing the state water quality standards from Reservation water bodies in 2008. NDEP has decided at this time to address aLL remaining waters on reservation Lands. Mr. Heggeness expLained that when Nevada water quality standards were established, they incLuded waters within Federal Indian Reservations. In 1987, section 518e was added to the CLean Water Act, which treats federally recognized Indian Tribes in a similar manner as states for certain provisions of the Act. Nevada water quality standards are not applicable to Federal Indian Reservations. This regulation change will bring the state regulation in alignment with the Federal regulation. After some discussion, Chairman Gans asked if there was any public comment on this matter. Paul Bottari, from Wells, Nevada came forward. Mr. Bottari submitted comments to the Commission (Attachment IV). Mr. Bottari expressed his concern for Nevada’s waters falling under EPA’s control. EPA has authority over navigabLe waters but not all waters in Nevada are navigabLe. Mr. Bottari requesting that the Commission never relinquish authority of the water that states have been given authority and ownership of. Commissioner Porta agreed with Mr. Bottari, asking the Division for cLarification. Ms. Sertic assured the Commission that the waters in question have Federal jurisdiction, there is nexus to navigabLe waters.
Motion: Commissioner Porta moved to adopt regulation R093-1 3. Commissioner King seconded the motion and it passed with Commissioner Richardson voting-nay.

9) R041 -13

— Air Quality, Adoption by Reference of Certain Federal Regulations: (Action Item) Jasmine Mehta presented both R041 -13 and R042-13 to the Commission, expLaining that these were the same regulatory petitions presented at the October SEC Hearing. Because ofsome confusion the regulations were not properLy posted in the newspaper. The regulations now meet aLL posting requirements. 3 Minutes of State EnvironmentaL Commission ReguLatory Meeting

- December4, 2013Motion: Commissioner Richardson moved to adopt reguLation R041 -13. CommissionerTurner

seconded the motion and it passed unanimously.
10.) R042-13

— Standards of QualityforAmbientAir, Prerequisites & Conditions for Operating Permits; and Compliance with Applicable State Implementation Plan: (Action Item) Again, this regulation now meets aLL posting requirements. Motion: CommissionerTurner moved to adopt reguLation R042-1 3. Commissioner Porta seconded the motion and it passed unanimousLy.
11) Motion to Dismiss Appeal ofAir QualityViolations: (Action Item) Deputy Attorney General BeLinda Suwe presented the appeal dismissaL to the Commission, expLaining that an appeal must go to a hearing within one year or the SEC can dismiss the appeal. CLark & Nye County DeveLopment Corporation filed the appeal on January 12, 2004 for NOAV 1819, which was never brought to a hearing. Motion: CommissionerTurner made a motion to dismiss the appeaL, Commissioner Porta seconded the motion and it passed unanimousLy.
12) Hydraulic Fracturing Presentation: (Discussion) Commissioner Rich Perry, Nevada Department of Minerals Administrator, provided an overview ofthe hydrauLic fracturing efforts in Nevada. (Attachment V)
13) Election ofVice Chairman: (Action Item) Chairman Gans expLained that with the retiring of ALan Coyner, the Commission needed a newvice-chairman and asked for nominations. CommissionerAnderson nominated Commissioner Porta, Commission Perry seconded the nomination. Commissioner Porta accepted and the nomination passed unanimously.
14) Administrator’s Briefing to the Commission: (Discussion) Dr. CoLleen Cripps, Administrator of NDEP, started byweLcoming Commissioner Rich Perry. She thanked him for his hydrauLic fracturing presentation and for putting it together so quickLy after starting his new position. Dr. Cripps did not have anything to present to the Commission at this time butwanted to know if the Commissioners had any feedback regarding the information NDEP is providing for the air settlements. ALso if there was anything eLse theywould like incLuded or changed in the hearing packets. It is NDEP’s goaL to make the information they provide the Commission easier and more useful. Chairman Gans said there are severaL things that the Commission is working on at this time including the creation of an information packet. Chairman Gans encouraged the Commissioners to Let VaLerie King know of any ideas or changes they might Like. Commissioner Perry asked if a Location map couLd be incLude with the penaLty settLements to indicate the Location where each vioLation happens.

Minutes of State EnvironmentaL Commission Regulatory Meeting

- December4, 201315) Public Comment: (Discussion) Chairman Gans asked for any pubLic comments; hearing none

he asked when the next SEC meeting wouLd be heLd. The next meeting wiLL be heLd February 12, 2014, in the Tahoe Conference Room on the 21K~ fLoor ofthe Bryan BuiLding. 16) Adjournment: (Discussion) Meeting was adjourned at 1pm.

Minutes of State Environmental Commission Regulatory Meeting

- December4, 2013

## ATTACHMENTS

ATTACHMENT I: Corrections to minutes from Rob Bamford ATTACHMENT II: Letterfrom NV Energy regarding Air Quality Violation ATTACHMENT III: Handout for proposed revision to Nevada’s Surface Water Quality Standards ATTACHMENT IV: PauL Bottari, comments to the Commission ATTACHMENTV: Hydraulic Fracturing Presentations

# ATTACHMENT I:

Corrections to minutes from Rob Bamford

### MinutesforOctober9, 2013 NDEP Proposed Revisions

> Page 3, item 8, fourth paragraph reads: “Mr. BamfordexplainedthatEPAviewspenaltiesasan effectivewaytomaintaincomplianceandIsnotsatisfiedwith Nevada’spenalties.” Review of Meeting Recording: (@57.O minutes) C&E are required componentsofa State Implementation Plan (SIP). C&E data is reported to EPA. Theyevaluate numberofinspections and penalty amounts. Posted online at SRF. Stack test data and othercriteria. EPA has oversight role regarding our Program implementation. (@~59.O minutes) Penalty matrixdeveloped bySECand NDEP. Matrixwas developed utilizing penalty valuestypical ofsurroundingwestern states and EPAguidance. We usethe penalty matrixto be consistentand apply appropriate penalty (gravity) amountforvariousviolations. Matrixyields valuesthat are (hopefully) nottoo lowortoo high and could bring challenge by EPAorothers. EPAhas oversight, theydo lookatviolations and penaltydollars. (@“l.OtO hours) Tom Porta: Where does EPAsettoday in regardsto our penalties? When I was in C&E, theywerealwaystelling usthatthe penaltiesweren’t enough, theyweretoo low, EPAwould threaten to over-file. In somecasestheydid over-file. (@~1:O2:36 hours) Rob Bamford: l.astyearwhen Region 9Administrator, Jared Blumenfeld metwith NDEP, he emphasized enforcementas penaltydollars and deterrence. They advised and encouraged NDEPto do press releasesfor every penalty. Historically, asTom Port referenced, EPA has challenged our program as being ~good” because ourpenaltydollars are low. We arguewith EPAthatouremphasis Is compliance and to be protective ofhealth and the environment; theiremphasis is dollars in the bank. We’ve been at loggerheads with them historically. They post programs’ penalties onlineon the SRF websitefora bit of“publicshaming.” (@“1:04.OO hours)Tom Porta: So nothing has really changed with theiremphasis on penaltydollars? Rob Bamford: No, and we are additionally apprehensive nowthat Region has created its own, newC&E branch and will be conducting its own C&E with additional oversight. That newgroup will be lookingfor “wins” and penaltiesto “hangtheir haton.” Dollarsare considered success. (@~1:O5:3O hours) Colleen Crlpps: Resources aretight, and EPA is looking forthe biggest bangfor Its buck (for penalties), and if It’s a deterrent, andtheycan publicize big penalties, then that’swhatthey like to do. (@~‘1:O6:33 hours) Ganse: NDEP Is like a mediatorbetween a permittee and EPA, tryingto cometoa balance.

### MinutesforOctober9, 2013 NDEP Proposed Revisions

PROPOSE: “Mr. Bamford explained thatwhen measuringthesuccessofa Compliance and Enforcement Program that EPAplacesa large emphasison enforcement in theform offinancial penalties used as punishmentand deterrent. In contrast, the NDEP emphasizescompliance byworkingwith industryto be protectiveofpublic health andthe environment. As EPAchoosesto measure Program success by penaltydollars, the NDEP has hadto historically, and currently, advocatethat it’sCompliance and Enforcementprogram iseffective even though itdoes not imposethe same high-dollarpenaltiesthat EPAitselfimposes.”

> Page7, item 10: “PST.” PROPOSE: “PSD”.

> Page7, item 11: “ThefirstoneIsthetable.” PROPOSE: “Thefirst proposed regulation revision istothe Nevada Standardsforambientairlocated in thetable in NAC4458.22097. The ozone and lead standards listed underthe Nevada Standards needto be alIgned withthe listed current Federal Standards.”