EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-i SECTION 12.3: PERMIT REQUIREM ENTS FOR MAJOR SOURCES IN NONATTAINMENT AREAS

12.3 Permit Requirements for Major Sour ces in Nonattain ment Areas ........................ 1 12.3.1 Applicability Pr ocedures ....................................................................... 1 12.3.1.1 Preconstruction Review Requirements ................................ 1 12.3.1.2 Construction of Major Sour ces or Modifi cations ................... 1 12.3.1.3 Authority to Construct Permit Require ment .......................... 1 12.3.1.4 Projects ................................................................................ 1 12.3.1.5 Major Sources with Plantwide Applicability Limitations ........ 2 12.3.1.6 Existing Emission Un it Projects ............................................ 2 12.3.1.7 Availability of Information ...................................................... 4 12.3.1.8 Secondary Em issions ........................................................... 4 12.3.2 Definitions ............................................................................................. 4 12.3.3 Statewide Co mplianc e ........................................................................ 24 12.3.4 Analysis of Al ternativ es ...................................................................... 24 12.3.5 Lowest Achievable Emission Ra te ..................................................... 24 12.3.5.1 Applicable Requirements .................................................... 24 12.3.5.2 Permit Requirements to Achieve LAER .............................. 24 12.3.6 Emissions Offset................................................................................. 25 12.3.6.1 Sufficiency of Reduction s ................................................... 25 12.3.6.2 Offset Met hods ................................................................... 25 12.3.6.3 Restrictions on Tr ading Polluta nts ...................................... 26 12.3.6.4 Timing................................................................................. 27 12.3.6.5 Quantit y .............................................................................. 27 12.3.6.6 Emission Reduction Requirem ents .................................... 28 12.3.6.7 Location of Inter nal Reducti ons .......................................... 29 12.3.6.8 Emission Reduction Credi t Requirem ents .......................... 29 12.3.6.9 ERC Registry ...................................................................... 30 12.3.7 Source Obli gation ............................................................................... 30 12.3.7.1 Enforcem ent ....................................................................... 30 12.3.7.2 Terminatio n ........................................................................ 30 12.3.7.3 Complianc e ........................................................................ 30 12.3.7.4 Relaxation in Enforcea ble Limita tions ................................ 31 12.3.8 Public Partic ipatio n ............................................................................. 31 12.3.9 Plantwide Applicability Limits (PAL) .................................................... 31 12.3.9.1 Applicab ility ........................................................................ 31 12.3.9.2 Definitions ........................................................................... 31 12.3.9.3 Permit Application Requirem ents ....................................... 33 12.3.9.4 General Requirements for Establishing PALs .................... 34 12.3.9.5 Public Participation Re quirements fo r PALs ....................... 35 12.3.9.6 Setting the 10-year Ac tuals PAL Level ............................... 35 12.3.9.7 Part 70 Operating Pe rmits with PALs ................................. 35 12.3.9.8 PAL Effective Period and Reope ning of PAL Conditions .... 36 12.3.9.9 Expiration of a PAL ............................................................. 37EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-ii 12.3.9.10 Renewal of a PAL ............................................................... 38 12.3.9.11 Increasing a PAL during the PAL Effective Period ............. 40 12.3.9.12 Monitoring Requirem ents for PALs ..................................... 41 12.3.9.13 Recordkeeping Re quirement s ............................................ 44 12.3.9.14 Reporting and Notificati on Requirem ents ........................... 44 12.3.9.15 Transition Requ irement s .................................................... 46 12.3.10 Potential Visibi lity Impa cts .................................................................. 46 12.3.11 Invalidat ion ......................................................................................... 46

LIST OF TABLES

Table 12.3-1. Federal Offset Ratio Requirem ents by Area Designation and Pollutant ................................................................................................ 28EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-1 12.3 Permit Requirements for Major Sources in Nonattainment Areas

12.3.1 Applicability Procedures

12.3.1.1 Preconstruction Review Requirements

The preconstruction review requirements of Section 12.3 shall apply to the construction of any new major stationary source or any project at an existing major stationary source in an area des ignated as nonattainment for any National Ambient Air Qualit y Standard under Section 10 7(d)(1)(B) of the Act [42 USC § 7407(d)(1)(B)].

12.3.1.2 Construction of Majo r Sources or Modifications

The requirements of Sections 12.3.3 through 12.3.8 apply to the construction of any new major stationary source or the major modifi cation of any existing major stationary source if the stat ionary source or modification is major for the regulated NSR pollutant for which the area is designated nonattainment under 40 CFR Part 81, ex cept as Secti on 12.3 otherwise provides.

12.3.1.3 Authority to Cons truct Permit Requirement

No new major stationary source or majo r modification to which the requirements of Sections 12.3.3 through 12.3. 8 apply shall begin actual construction without an Authority to Construct Permit issued pur suant to Section 12.4 that states that the major stati onary source or major modification will meet those requirements.

12.3.1.4 Projects

The requirements of Secti on 12.3.1.4 apply to projec ts at major stationary sources in accordance with the principl es set out in paragraphs (a) through (e) of Section 12.3.1.4.

(a) Except as otherwise pr ovided in Section 12.3.1.5, a project is a major modification for a regulated NSR pollut ant if it causes two (2) types of emissions increases: a significant emissions increase and a significant net emissions increas e. The project is not a major modification if it does not cause a significant em issions increase. If the project causes a significant emissions incr ease, then the project is a major modification only if it also result s in a significant net emissions increase.
(b) The procedure for calculating (b efore beginning actual construction) whether a significant emissions in crease will occur depends upon the type of emissions units being added or modified as part of the pro-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-2 ject, according to paragraphs (c) th rough (e) of Secti on 12.3.1.4. The procedure for calculating (before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source is contained in the definition of net emissions increase. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase.

(c) Actual-to-Projected-Actual Appli cability Test for Projects that Only Involve Existing Emissions Units. A significant emissions increase of a regulated NS R pollutant is projected to occur if the sum of the difference between the proj ected actual emissions and the baseline actual emissions, for each existing emissions unit, equals or exceeds the significant am ount for that pollutant.

(d) Actual-to-Potential Test for Proj ects that Only Involve Construction of a New Emissions Unit(s). A significant emissions increase of a regulated NSR pollut ant is projected to o ccur if the sum of the difference between the PTE from each new emissions unit following completion of the project and the bas eline actual emissions of these units before the project equals or ex ceeds the significant amount for that pollutant.

(e) Hybrid Test for Projects that In volve Multiple Types of Emissions Units. A significant emissions in crease of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in paragraphs (c) or (d) of Section 12.3.1.4, as app licable with respect to each emissions unit, equals or exceeds the signi ficant amount for that pollutant.

12.3.1.5 Major Sources with Plantw ide Applicability Limitations

For any major stationary source with a PAL for a regulated NSR pollutant, the major stationary source shall comp ly with the requirements in Section 12.3.9.

12.3.1.6 Existing Emi ssion Unit Projects

The provisions of this paragraph apply w hen a project occurs at an existing emissions unit at a major stationary s ource, other than a s ource with a PAL; the project is not a part of a major modification; and the owner or operator elects to use the method specified in paragraphs (1)(A) through (1)(D) of the definition of project ed actual emissions.

(a) Before beginning actual construc tion of the project, and as a condition of the source’s Authority to Construct Permit, the owner or op-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-3 erator shall document and maintain a record of the following information:

(1) A description of the project;

(2) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be affected by the project; and

(3) A description of t he applicability test used to determine that the project is not a major modi fication for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under paragraph (1)(D) of the definition of projected actual emissions and an explanation for why such amount was excluded, and any netting calculations, if applicable.

(b) If the emissions unit is an exis ting emissions unit, before beginning actual construction, the owner or oper ator shall provide a copy of the information set out in paragraph (a) of Section 12.3.1.6 to the Control Officer. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the Control Officer before beginning actual construction, except such owner or operator may still be subj ect to the requirements of Section 12.1, Section 12.4, or ot her applicable requirements.

(c) The owner or operator shall moni tor the emissions of any regulated NSR pollutant that could increase as a result of the project and that are emitted by any emissions unit identified in paragraph (a)(2) of Section 12.3.1.6; and calc ulate and maintain a record of the annual emissions (in tpy) for a period of five (5) years following resumption of regular operations after the c hange, or for a period of ten (10) years following resumption of regular operations after the change if the project increases the design capac ity of, or potential to emit that regulated NSR pollutant at , any emissions unit.

(d) If the emissions unit is an existi ng electric utility steam generating unit, the owner or operator shall s ubmit a report to the Control Officer within sixty (60) days a fter the end of each calendar year during which records must be generated under paragraph (c) of Section 12.3.1.6 setting out the unit’s annual emissions during the calendar year that preceded subm ission of the report.

(e) If the emissions unit is an existing emissions unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the Control Officer if the annual emissions, in tpy, from the project identified in paragraph (a) of Section 12.3.1.6 exceed the baseline actual emissions (as do cumented and maintained pursuantEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-4 to paragraph (a)(3) of Section 12.3.1. 6), by a significant amount for that regulated NSR pollutant, and if such emissions differ from the projected actual emissions (prior to exclusion of the amount of emissions under the definition of projec ted actual emissions) as documented and maintained pursuant to paragraph (a)(3) of Section 12.3.1.6. Such report s hall be submitted to the Control Officer within sixty (60) days after the end of such year. The report shall contain the following:

(1) The name, address, and tele phone number of the major stationary source;

(2) The annual emissions, as ca lculated pursuant to paragraph (c) of Section 12.3.1.6; and

(3) Any other information that the owner or operator wishes to include in the report (e.g., an expl anation as to why the emissions differ from the preconstruction projection).

12.3.1.7 Availability of Information

The owner or operator of the source shall make the information required to be documented and maintained pursuant to Section 12.3.1. 6 available for review upon a request for inspection by the Control Officer.

12.3.1.8 Secondary Emissions

Secondary emissions shall not be cons idered in determining whether a stationary source would qualify as a majo r stationary source. If a stationary source is subject to Section 12.3 on t he basis of the direct emissions from the stationary source, the requirements of Section 12.3.6, but no other provisions of Section 12.3, must al so be met for secondary emissions.

12.3.2 Definitions

Unless the context otherwise requires, the following terms shall have the meanings set forth below for the purposes of Section 12.3. When a term is not defined in these paragraphs, it sha ll have the meaning given in Section 0, or in the Act, in t hat order of priority.

(a) "Actual emissions" means the actual rate of emissions of a regulated NSR pollutant from an emissions unit, as determined in accordance with this definition.

(1) In general, actual emissions as of a particular date shall equal the average rate, in tpy, at wh ich the emissions unit actually emitted the regulated NSR pollut ant during a consecutive 24- month period which precedes the particular date and which isEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-5 representative of normal source operation. The Control Officer shall allow the use of a different time period upon a determination that it is more representat ive of normal source operation. Actual emissions sha ll be calculated using the unit’s actual operating hours, production rates, and types of materials processed, stored, or combusted dur ing the selected time period.

(2) The Control Officer may presum e that source-s pecific allowable emissions for the unit are equi valent to the actual emissions of the unit.

(3) For any emissions unit that has not begun normal operations on the particular date, actual em issions shall equal the PTE of the unit on that date.

(4) This definition shall not apply for calculating whether a significant emissions increase has o ccurred, or for establishing a PAL under Section 12.3.9. Instead, projected actual emissions and baseline actual emissions s hall apply for those purposes.

(b) "Allowable emissions" means the emissions rate of a stationary source calculated using the maximu m rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, hours of operation, or both) and the most stringent of the following:

(1) Any applicable standards set fo rth in these AQRs and 40 CFR Parts 60, 61, or 63;

(2) Any applicable emission limitati on in the Nevada SIP, including those with a future compliance date; or

(3) The emissions rate specified as a federally enforceable permit condition, including those with a future compliance date.

(c) "Baseline actual emissions" means t he rate of emissions, in tpy, of aregulated NSR pollutant, as determined in accordance with paragraphs (c)(1) through (c)(4 ) of this definition.

(1) For any existing electric util ity steam generating unit, baseline actual emissions means the aver age rate, in tpy, at which the unit actually emitted the polluta nt during any consecutive 24- month period selected by the owner or operator within the 5- year period immediately prec eding when the owner or operator begins actual construction ofthe project. The Control Officer shall allow the use of a different time period upon a determination that it is more r epresentative of normal source operation.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-6 (A) The average rate shall include fugitive emissions, to the extent quantifiable, and emissions associated with startups

, and shutdowns, except emissions from a shutdown associated with a and malfunction s

. (B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable durin g the consecutive 24-month period.

(C) The average rate shall be adjusted downward to exclude any emissions that woul d have exceeded an emission limitation with which the majo r stationary source must comply as of the particular date, had such major stationary source been required to comp ly with such limitations during the consecutive 24-m onth period. For the purposes of determining baseline ac tual emissions for contemporaneous changes pursuant to paragraph (1)(B) of the definition of net emi ssions increase, the particular date is the date on which the parti cular change occurred. However, if an emission limitat ion is part of a maximum achievable control technolog y standard that the Administrator proposed or promul gated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state of Nevada has taken credit for such emissions reductions in an attainment demonstration or maintenance plan, consistent with the requirements of 40 CFR 51.165(a)(3)(ii)(G).

(D) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to dete rmine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated NSR pollutant.

(E) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tpy, and for adjusting this amount if requi red by this definition.

(2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tpy, at which th e emissions unit actually emitted the pollutant during any c onsecutive 24-month period selected by the owner or operator within the 10-year period im-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-7 mediately preceding ei ther the date the ow ner or operator begins actual construction of the project, or the date a complete permit application is received by the Control Officer for a permit required under these AQRs, wh ichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990.

(A) The average rate shall include fugitive emissions to the extent quantifiable.

(B) The average rate shall in clude emissions associated with startups

, and shutdowns, except emissions from a shutdown associated with a and malfunction s

. (C) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable durin g the consecutive 24-month period.

(D) The average rate shall be adjusted downward to exclude any emissions that woul d have exceeded an emission limitation with which the majo r stationary source must comply as of a particular date, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. For the purposes ofdetermining baseline actual emissions for contemporaneous changes pursuant to par agraph (1)(B) of the definition of net emissions increase, the particular date is the date on which the particular change occurred. However, if an emission limitat ion is part of a maximum achievablecontrol technology standard that the Administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the State of Nevada has taken credit for su ch emissions reductions in an attainment demonstration or maintenance plan, consistent with the requirements of 40 CFR 51.165(a)(3)(ii)(G).

(E) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to dete rmine the baseline actual emissions for all the emi ssions units being changed. A different consecutive 24-m onth period can be used for each regulated NSR pollutant.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-8 (F) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tpy, and for adjusting this amount if r equired by paragraphs (2)(B) and (2)(C) of this definition.

(3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissi ons increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit’s PTE.

(4) For a PAL for a stationary s ource, the baseline actual emissions shall be calculated for exis ting electric utility steam generating units in acco rdance with the proce dures contained in paragraph (1) of this definition; for other existing emissions units, in accordance with the pr ocedures contained in paragraph (2) of this definition; and fo r a new emissions unit, in accordance with the procedures c ontained in paragraph (3) of this definition.

(d) "Basic design parameter" means:

(1) Except as provided in paragraph (3) of this definition, for a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourly heat input an d maximum hourly fuel consumption rate or maximum hourly electric output rate and maximum steam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on Btu content shall be used for determining the basic design parameter(s) fo r a coal-fired electric utility steam generating unit.

(2) Except as provided in paragraph (3) of this definition, the basic design parameter(s) for any process unit that is not at a steam electric generating facility are ma ximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fuel input. For sources having multiple end products and raw materials, the owner or operator should consider the primary product or prim ary raw material when selecting a basic design parameter.

(3) If the owner or operator believes the basic design parameter(s) in paragraphs (1) and (2) of this definition is not appropriate for a specific industry or type of process unit, the ownerEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-9 or operator may propose to the Control Officer an alternative basic design parameter(s) for the source’s process unit(s). If the Control Officer approves of the use of an alternative basic design parameter(s), the Contro l Officer shall issue a permit that is legally enfor ceable that records such basic design parameter(s) and requires the owner or operator to comply with such parameter(s).

(4) The owner or operator shall us e credible information, such as results of historic maximum capabi lity tests, design information from the manufacturer, or engi neering calculations, in establishing the magnitude of the basic design parameter(s) specified in paragraphs (1) and (2 ) of this definition.

(5) If design information is not available for a process unit, then the owner or operator shall dete rmine the process unit’s basic design parameter(s) using the maximum value achieved by the process unit in the 5-year period immediately preceding the planned activity.

(6) Efficiency of a process unit is not a basic design parameter.

(7) The replacement activity shall not cause the process unit to exceed any emission lim itation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable.

(e) "Begin actual construction" means in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities in clude, but are not limited to, installation of building supports and f oundations, laying of underground pipework, and construction of perman ent storage structures. With respect to a change in method of operat ing, this term refers to those on-site activities other than preparat ory activities which mark the initiation of the change.

(f) "Best Available Control Technology (BACT)" means an emission limitation (including a visible emissi ons standard) based on the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the Control Officer, on a case-by-case basis, taking into account energy, envir onmental, and economic impacts and other costs, determines is achiev able for such source or modification through application of pr oduction processes or available methods, systems, and techniques, incl uding fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall applicati on of BACT result in emissions ofEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-10 any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Part 60 or 61. If the Control Officer determines that technological or ec onomic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, oper ational standard or combination thereof may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achiev able by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which ac hieve equivalent results.

(g) "Building, structure, facility, or installation" means all of the pollutantemitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same pe rson (or persons under common control) except the activities of any vessel. Pollutant-emitting activities shall be considered as part of th e same industrial grouping if they belong to the same major group (i .e., which have the same SIC or NAICS code) as described in either the Standard Industrial Classification (SIC) manual, 1972, as amended by the 1977 supplement or the North American Industry Classification System (NAICS) manual.

(h) "Categorical stationary source" m eans any stationary source of air pollutants that belongs to one of t he following categorie s of stationary

sources:

(1) Fossil fuel-fired steam electric plants of more than 250 million Btu per hour heat input;

(2) Coal cleaning plants ( with thermal dryers);

(3) Kraft pulp mills;

(4) Portland cement plants;

(5) Primary zinc smelters;

(6) Iron and steel mills;

(7) Primary aluminum ore reduction plants;

(8) Primary copper smelters;

(9) Municipal incinerators capable of charging more than 50 tons of refuse per day;

(10) Hydrofluoric, sulfuric , or nitric acid plants;EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-11 (11) Petroleum refineries;

(12) Lime plants;

(13) Phosphate rock processing plants;

(14) Coke oven batteries;

(15) Sulfur recovery plants;

(16) Carbon black plant s (furnace process);

(17) Primary lead smelters;

(18) Fuel conversion plants;

(19) Sintering plants;

(20) Secondary metal production plants;

(21) Chemical process plants;

(22) Fossil-fuel boilers (or combi nation thereof) totaling more than 250 million Btu per hour heat input;

(23) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels;

(24) Taconite ore processing plants;

(25) Glass fiber processing plants; and

(26) Charcoal production plants ; and.

(27) Any other stationary source ca tegory, which as of August 7, 1980 is being regulated under Sect ion 111 or 112 of the Act.

(i) "Clean coal technology" means any technology, including technologies applied at the precombustion, combustion, or post combustionstage, at a new or existing facility which will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen associated with the utilization of coal in the generation of electricity, or process steam which was not in wi despread use as of November 15, 1990.

(j) "Clean Coal Technology Demonstr ation Project" means a project using funds appropriated under the heading “Depar tment of EnergyClean Coal Technology,” up to a total amount of $2.5 billion for commercial demonstration of clean c oal technology, or similar pro-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-12 jects funded through appropriations for the EPA. The federal contribution for a qualifying project shall be at least twenty (20) percent of the total cost of the demonstration project.

(k) "Commence," as applied to construction of a major stationary source or major modification, means that the owner or operat or has all necessary preconstruction approvals or permits, including an Authority to Construct Permit, and either has:

(1) Begun, or caused to begin, a co ntinuous program of actual onsite construction of the source, to be completed within a reasonable time; or

(2) Entered into binding agreement s or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to un dertake a program of actualconstruction of the source, to be completed within a reasonable time.

(l) "Complete" means, in reference to an application for a permit, that the application contains all of t he information necessary for processing the application. Designating an application complete for purposes of permit processing does not preclude the Control Officer from requesting or accepting any additional information.

(m) "Construction" means any physical change, or change in the method of operation (including f abrication, erection, inst allation, demolition, or modification of an emissions unit), that would result in a change in emissions.

(n) "Continuous Emissions Monitoring System (CEMS)" means all of the equipment that may be required to meet the data acquisition and availability requirements of Section 12.3, to sa mple, condition (if applicable), analyze, and provide a reco rd of emissions on a continuous basis.

(o) "Continuous Emissions Rate M onitoring System (CERMS)" means the total equipment required for t he determination and recording of the pollutant mass emissions rate (in terms of mass per unit of time).

(p) "Continuous Parameter Monitoring System (CPMS)" means all of the equipment necessary to meet the dat a acquisition and availability requirements of Section 12.3, to m onitor process and control device operational parameters and other info rmation and to record average operational parameter value( s) on a continuous basis.

(q) "Electric Utility Steam Generati ng Unit" means any steam electric generating unit that is c onstructed for the purpose of supplying moreEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-13 than one-third of its potential electr ic output capacity, and more than 25 MW of electrical output, to any utility power distribution system. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-elect ric generator that would produce electrical energy for sale is also considered in dete rmining the electrical energy output capacity of the affected facility.

(r) "Emission Reduction Credit (ERC) " means a unit of emission reduction (in tpy) that has been issued by the Control Officer in accordance with the provisions set forth in Sections 12.3.6 and 12.7.

(s) "Emissions Unit" means any part of a stationary source that emits, or would have the potential to emit, any regulated NSR pollutant and includes an electric utility steam gener ating unit. For purposes of Section 12.3, there are two types of em issions units as described in paragraphs (1) and (2) of this definition:

(1) A “new emissions unit” is any emissions unit which is (or will be) newly constructed and which has existed for less than two (2) years from the date such em issions unit first operated. For the purposes of this definition, the date an emissions unit first operated shall not be extended by any shakedown period established pursuant to paragraph (aa)(6) of Section 12.3.2.

(2) An “existing emissi ons unit” is any emissi ons unit that does not meet the requirements in paragraph (1) of this definition. A replacement unit is an existing emissions unit.

(t) "Federally Enforceable" means a ll limitations and conditions which are enforceable by the Administrator.

(u) "Federal Land Manager" means, wit h respect to any lands in the United States, the Secretary of the Department wit h authority over such lands.

(v) "Fugitive Emissions" means those emissions which could not reasonably pass through a stack, chimney , vent, or other functionally equivalent opening.

(w) "Lowest Achievable Emission Ra te (LAER)" means, for any source, the more stringent rate of emissions based on the following:

(1) The most stringent emission li mitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed major stationary source de monstrates that such limitations are not achievable; orEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-14 (2) The most stringent emission li mitation which is achieved in practice by such class or cat egory of stationary sources. This limitation, when app lied to a major modification, means the LAER for the new or modified emissions units within the stationary source. In no event shall the application of the term permit a proposed new or modified stationary source to emit any pollutant in excess of t he amount allowable under an applicable new source standard of performance.

For purposes of this definition onl y, the term “any state” means a state, the District of Columb ia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam , and American Samoa, and includes the Commonwealth of t he Northern Mariana Islands.

(x) "Major Modification" means any physical change in, or change in the method of operation of, a major stati onary source that would result in a significant emissions increase of a regulated NSR pollutant and a significant net emissions increase of that pollutant from the major stationary source.

(1) Any significant emissions incr ease from any emissions units or net emissions increase at a ma jor stationary source that is significant for volatile organic compounds shall be considered significant for ozone.

(2) Any significant emissions incr ease from any emissions units or net emissions increase at a ma jor stationary source that is significant for nitrogen oxides shall be considered significant for ozone unless EPA has granted a waiver for nitrogen oxides emissions under Section 182(f) ofthe Act and the waiver continues to apply.

(3) A physical change or change in the method of operation shall not include:

(A) Routine maintenance, repair, and replacement;

(B) Use of an alternative fuel or raw material by reason of an order under Sections 2(a) and (b) of the Energy Supplyand Environmental Coordination Act of 1974 (or any superseding legislation), or by reason of a natural gas curtailment plan pursuant to the Federal Power Act;

(C) Use of an alternative fuel by reason of an order or rule under Section 125 of the Act;EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-15 (D) Use of an alternative fuel at a steam generating unit, to the extent that the fuel is generated from municipal solid waste;

(E) Use of an alternative fuel or raw material by a stationary source which:

(i) The source was capable of accommodating before December 21, 1976, unless such change would be prohibited under any feder ally enforceable permit condition which was established after December 21, 1976 pursuant to Section 12 or under regulations approved pursuant to 40 CFR Part 51, Subpart I.

(ii) The source is approved to use under any permit issued under Section 12.

(F) An increase in the hours of operation or in the productionrate, unless such change is prohibited under any federally enforceable permit condition which was established after December 21, 1976;

(G) Any change in ownership at a stationary source;

(H) The installation, operation, cessation, or removal of a Temporary Clean Coal Tech nology Demonstration Project, provided that the project complies with:

(i) The Nevada SIP; and

(ii) Other requirements nece ssary to attain and maintain the National Ambient Air Quality Standards during the project and after it is terminated.

(I) The installation or operati on of a permanent Clean CoalTechnology Demonstration Project that constitutes repowering, provided that the pr oject does not result in an increase in the potential to em it of any regulated pollutant emitted by the unit. This exem ption shall apply on a pollutant-by-pollutant basis; or

(J) The reactivation of a very clean coal-fired electric utility steam generating unit.

(4) This definition shall not apply wi th respect to a particular regulated NSR pollutant when the Ma jor Stationary Source is complying with the requirements under Section 12.3.9 for a PALEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-16 for that regulated NSR pollutan t. Instead, the definition of PAL major modification shall apply.

(5) The fugitive emissions of a major stationary source shall not . be included in determining, for any of the purposes of Section 12.3, whether a particular physi cal change or change in the method of operation is a major modification. unless the major stationary source is a categorical stationary source or belongs to any other stationary source ca tegory which, as of August 7, 1980, was being regulated under Section 111 or 112 of the Act.

. (y) "Major Stationary Source" means:

(1) Any stationary source of air po llutants which emits, or has the potential to emit, 100 tpy or more of any regulated NSR pollutant except:

(A) For an area designated nonattainment for PM 10 and classified as “serious,” a major st ationary source is a stationary source which emits, or has the potential to emit, seventy (70) tpy or more of PM 10

. (B) A major stationary source is a stationary source which emits, or has the potential to em it, fifty (50) tpy or more in an area classified as “serious” nonattainment for CO where stationary sources signif icantly contribute to ambient CO levels, as determined under regulations issued by EPA pursuant to the Act.

(C) For an area designated nonattainment for ozone, asource with the potential to emit VOC or NOx in the following amounts shall be considered a major stationary

source:
(i) ≥ 100 tpy in areas classified as “marginal” or “moderate”;

(ii) ≥ 50 tpy in areas classified as “serious”;

(iii) ≥ 25 tpy in areas classified as “severe”; and

(iv) ≥ 10 tpy in areas classified as “extreme.”

(2) Any physical change that would occur at a stationary source not qualifying as a major stat ionary source under paragraph (1) of this definition, if the c hange would constitute a major stationary source by itself under paragraph (1).EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-17 (A)(3) A major stationary source that is major for volatile organic compounds shall be considered major for ozone.

(B)(4) A major stationary source that is major for nitrogen oxides shall be considered major for ozone, unless EPA has granted a waiver for nitrogen oxides emis sions under Section 182(f) of the Act and the waiver continues to apply.

(3)(5) The fugitive emissions of a stat ionary source shall not be included in determining for any of the purposes of Section 12.3 whether it is a major stationary source, unless the source is a categorical stationary source orbelongs to any other stationary source category which, as of August 7, 1980, was being regulated under Section 111 or 112 of the Act.

(z) "Necessary preconstruction approvals or permits" means those permits or approvals required under air quality control laws and regulations that are part of the Nevada SIP, these AQRs, or federal air quality control laws and regulations, including the Authority to Construct Permits issued pur suant to Section 12.4.

(aa) "Net Emissions Increase" means , with respect to any regulated NSR pollutant emitted by a major st ationary source, the following:

(1) The amount by which the sum of the following exceeds zero:

(A) The increase in emissions from a particular physical change, or change in the method of operation, at a stationary source as calculated pursuant to paragraphs (a) through (e) of Section 12.3.1.4; and

(B) Any other increases and dec reases in actual emissions at the major stationary sour ce that are contemporaneous with the particular change and ar e otherwise creditable.

(i) For the purposes of ca lculating increases and decreases under paragraph (1)( B) of this definition, baseline actual emissions prior to the contemporaneous project shall be determined as provided in the definition of basel ine actual emissions, except that paragraphs (1)(D) and (2)(E) of that definition shall not apply.

(ii) For the purposes of calculating increases under paragraph (1)(B) of this defin ition, actual emissionsafter the contemporaneous project shall be determined as provided in the def inition of actual emis-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-18 sions, except as provided in paragraph (1)(E) of this definition.

(iii) For the purposes of calculating increases under paragraph (1)(B) of this defin ition, if the Control Officer determines that there is no sufficiently representative time period of actual emissions after a contemporaneous project, pursuant to paragraph (a)(1) of Section 12.3.2, actual emissions after the contemporaneous project shall be determined as provided in the definition ofprojected actual emissions.

(iv) For the purposes of calculating decreases under paragraph (1)(B) of this defin ition, actual emissionsafter the contemporaneous project shall be determined as provided in the def inition of actual emissions.

(2) An increase or decrease in actual emissions is contemporaneous with the increase from t he particular change only if it occurs between the date five (5 ) years before construction on the particular change commences and the date that the increase from the particular change occurs.

(3) An increase or decrease in actu al emissions is creditable only if the Control Officer has not relied on it in issuing a permit for the source under Secti on 12, or any other regulation approved by the Administrator pursuant to 40 CFR Part 51 or 40 CFR Part 52.21, which permit is in e ffect when the increase in actual emissions from the particular change occurs.

(4) An increase in actual emissions is creditable only to the extent that the new level of actual em issions exceeds the old level.

(5) A decrease in actual emissions is creditable only to the extent that:

(A) The old level of actual emi ssions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions;

(B) It is enforceable as a prac tical matter at and after the time that actual construc tion on the particular change begins;

(C) The Control Officer has not relied on it in issuing any permit under Section 12 or any other regulations ap-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-19 proved pursuant to 40 CFR Part 51, Subpart I, nor has the state of Nevada relied on it in demonstrating attainment or reasonable fu rther progress; and

(D) It has approximately the same qualitative significance for public health and welfare as t hat attributed to the increase from the particular change.

(6) An increase that results from a physical chan ge at a sourceoccurs when the emissions unit on which construction occurred becomes operational and begi ns to emit a particular pollutant. Any replacement unit that requires shakedown, or any new emissions unit that replaces an existing emissions unit and that requires shakedow n, becomes operational onlyafter a reasonable shakedown period, not to exceed one hundred eighty (180) days.

(bb) "Nonattainment Major New Sour ce Review (NSR) Program" means a major source preconstruction permit program that has been approved by the Administrator and incor porated into the Ne vada SIP, or a program that implement s 40 CFR Part 51, Appendix S, Sections I through VI. Any permit issued under su ch a program is a major NSR permit.

(cc) "Permanent" means an emission reduction which is federally enforceable for the life of a corres ponding increase in emissions. For federal Emission Reduction Credits (ERCs), emission reductions for a stationary source are permanent ifthe reductions are federally enforceable and the reductions occur ov er the duration of the ERC rule.

(dd) "Potential to Emit (PTE)" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational lim itation on the capacity of the source to emit a pollutant, includ ing air pollution control equipment and restrictions on hours of operation or on t he types or amounts of material combusted, stored, or proc essed, shall be treated as part of its design only if t he limitation or the effect it would have on emissions is federally enforceable as a practical matter . Secondary emissions do not count in determining the PTE of a st ationary source.

(ee) "Predictive Emissions Monitoring System (PEMS)" means all of the equipment necessary to monitor pr ocess and control device operational parameters and other informat ion, and calculate and record the mass emissions rate on a continuous basis.

(ff) "Prevention of Significant De terioration (PSD) Permit" means any permit that is issued under a majo r source preconstruction permitEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-20 program that has been approved by the Administrator and incorporated into the Nevada SIP to impl ement the requirements of Part C, Subchapter I of the Act.

(gg) "Project" means a physical change in, or change in the method of operation of, an existing major stationary source.

(hh) "Projected Actual Emissions" means the maximum annual rate, in tpy, at which an existing emissions unit is projected to emit a regulated NSR pollutant in any one of the five (5) years (12-month period) following the date the unit resumes regular operation after the project, or in any one of the ten (10) years following that date, if the project involves increasing the design capacity or PTE of any emissions unit for that regulated NSR pollutant and full utilizati on of the unit would result in a signif icant emissions increase or a significant net emissions increase at the major stationary source.

(1) In determining the projected actual emissions (before beginning actual construction), the ow ner or operator of the major stationary source:

(A) Shall consider all relevant information, including, but not limited to, historical operati onal data, the company’s ownrepresentations, the company’s expected business activity and the company’s highest pr ojections of business activity, the company’s filings wi th the county, state or federal regulatory authorities, and compliance plans under these AQRs;

(B) Shall include fugitive emissi ons to the extent quantifiable;

(C) Shall include emissions associated with startups

, and shutdowns, except emissions from a shutdown associated with aand malfunction s ; and

(D) Shall exclude, only for calc ulating any increase in emissions that results from the par ticular project, that portion of the unit’s emissions followi ng the project that an existing unit could have acco mmodated during the consecutive 24-month period used to establish the baseline actual emissions and that are also unrelated to the particular project, including any increased utilization due to product demand growth.

(2) In lieu of using the method set out in paragraphs (1)(A) through (1)(D) of this definition, the owner or operator of the major stationary source may elect to use the emissions unit’s PTE in tpy.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-21 (ii) "Regulated NSR Pollutant," for purposes of Sect ion 12.3, means:

(1) Nitrogen oxides or any vo latile organic compounds;

(2) Any pollutant for which a Nati onal Ambient Air Quality Standard has been promulgated ; and any constituents or precursors identified by the Administrator provided that such constituent or precursor pollutant may only be regulated under NSR as part of regulation of t he general pollutant. ; or

(3) Any pollutant that is identified as a constituent or precursor of a general pollutant, provided that such constituent or precursor pollutant may only be regulated under NSR as part of regulation of the general pollutant. T he Administrator has identified the following Pp recursors identified by the Administrator for the purposes of NSR are the following :
(A) ( A ) Volatile organic compounds and nitrogen oxides are precursors to ozone in a ll ozone nonattainment areas.

(B) ( B ) Sulfur dioxide is a precursor to PM 2.5 in all PM 2.5 nonattainment areas.

(C) ( C ) Nitrogen oxides are presumed to be precursors to PM 2.5 in all PM 2.5 nonattainment areas, unless the State or county demonstrates to the Administrator's satisfaction or EPA demonstrates that emi ssions of nitrogen oxidesfrom sources in a specific area are not a significant contributor to that area's ambient PM 2.5 concentrations.

(2)(D) ( D ) Volatile organic compounds and ammonia are presumed not to be precursors to PM 2.5 in any PM 2.5 nonattainment area, unless the St ate or county demonstrates to the Administrator's satisfaction or EPA demonstrates that emissions of volatile organic compounds or ammonia from sources in a specific ar ea are a significant contributor to that area's ambient PM 2.5 concentrations.

(3) Any pollutant that is a consti tuent or precursor of a general pollutant listed under paragraphs (1 ) or (2) of this definition, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regulation of the general pollutant

. (4) PM 2.5 emissions and PM 10 emissions shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient te mperatures. On or after January 1, 2011, such condensable particulate matter shall be ac-EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-22 counted for in applicability determinations and in establishing emissions limitations for PM 2.5 and PM 10 in PSD permits. Compliance with emissions limitations for PM 2.5 and PM 10 issued prior to this date shall not be based on condensable particulate matter unless required by the terms and conditions of the permit or the applicable impl ementation plan. Applicability determinations made prior to th is date without accounting forcondensable particulate matter shall not be considered in violation of this section unless the applicable implementation plan required condensable particulate matter to be included.

(jj) "Replacement Unit" means an emissi ons unit for which all the criteria listed in paragraphs (1) through (4) ofthis definition are met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. The criteria are:

(1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the em issions unit completely takes the place of an existing emissions unit.

(2) The emissions unit is identical to , or functionally equivalent to, the replaced emissions unit.

(3) The replacement does not alter the basic design parameters of the process unit.

(4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it sh all constitute a new emissions unit.

(kk) "Secondary Emissions" means emi ssions which would occur as a result of the constructi on or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose ofSection 12.3, secondary emissions must be specific, we ll defined, quantifiable, and impact the same general area as the stati onary source or modification which causes the secondary emissions . Secondary emissions include emissions from any offsite support facility which would not be constructed or increase its emissions exc ept as a result of the construction or operation of the major stati onary source or major modification.Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from t he tailpipe of a motor vehicle, from a tr ain, or from a vessel.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-23 (ll) "Shutdown" means the cessation of operation of any air pollution control equipment or process equip ment for any purpose except routine phasing out of process equipment.

(mm) "Significant" means, in reference to a net emissions increase or the potential of a source to emit any of the following pollut ants, a rate of emissions that would equal or ex ceed any of the following rates:

(1) Carbon monoxide:

(A) 100 tpy; or

(B) 50 tpy in an area designat ed nonattainment for CO and classified as "serious," and w here stationary sources significantly contribute to ambi ent CO levels as determined under regulations issued by EPA pursuant to the Act.

(2) Nitrogen oxides: 40 tpy;

(3) Sulfur dioxide: 40 tpy;

(4) Ozone:

(A) 40 tpy of VOCs; or

(B) 40 tpy of nitrogen oxides, unless EPA has granted a waiver for nitrogen oxides emis sions under Section 182(f) of the Act and the waiver continues to apply.

(5) PM 10 : 15 tpy;

(6) PM 2.5: 10tpy of direct PM2.5 emissions or 40 tpy of sulfur dioxide emissions or 40 tpy of nitrogen dioxide emissions; and

(7) Lead: 0.6 tpy.

(nn) "Significant Emissions Increase" means, for a regulated NSR pollutant, an increase in emissions that is significant for that pollutant.

(oo) "Startup" means the setting into operation of any air pollution control equipment or process equipment fo r any purpose except routine phasing in of process equipment.

(pp) "Stationary Source" means any buildi ng, structure, facility, or installation which emits or may emit a regulated NSR pollutant.

(qq) "Surplus" means an emission reduction that has not been relied on in any air quality program related to any SIP ,; that is not a Nevada SIP requirement ,; that is not a requirement of a state air quality programEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-24 that has been adopted but is not in the Nevada SIP ,; that is not credited in any federal reasonable furt her progress or other milestone demonstration ,; that is not a requirement of a consent decree ,; that is not a requirement of a f ederal rule that focuse s on reducing criteria air pollutants or their precursors, including any applicable NSPS

, or an applicable NESHAP

, unless the state has not taken credit for emission reductions due to the NES HA P in theirits attainment demonstration or mainten an ce plan ,; and that has not already been credited in any other air quality pr ogram. The purpose of requiring that emissions offsets be surplus is to prohibit double-counting of emission reductions.

(rr) "Temporary Clean Coal Technology Demonstrat ion Project" means a Clean Coal Technology Demonstrat ion Project that is operated for a period of five (5) years or less, and which complies with the SIP for the state in which the project is located and with other requirements necessary to attain and maintain the National Ambi ent Air Quality Standards during the project and after it is terminated.

12.3.3 Statewide Compliance

Prior to issuance of an Authority to Construct Permit fo r a new major stationary source or major modification s ubject to Section 12.3, the applicant shall either demonstrate that each ex isting major stationary source owned or operated by the applicant in the stat e of Nevada is in compliance with all applicable emission limitati ons and standards under the Act or is in compliance with an expeditious schedule whic h is federally enforceable or contained in a court decree.

12.3.4 Analysis of Alternatives

Prior to issuance of an Authority to Construct Permit fo r a new major stationary source or major modification s ubject to Section 12.3, the applicant shall submit an analysis of alternative sites, sizes, produ ction processes, and environmental control techniques fo r the proposed source that demonstrates, to the satisfaction of the Cont rol Officer, that the benefits of the proposed source significantly outweigh t he environmental and social costs imposed as a result of its location, construction, or modification.

12.3.5 Lowest Achievable Emission Rate

12.3.5.1 Applicable Requirements

A major stationary source or major modification shall meet each applicable requirement.

12.3.5.2 Permit Requirements to Achieve LAEREXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-25 An Authority to Construct Permit for a new major stationary source or major modification shall contain terms and cond itions sufficient to ensure that the major stationary source or major modi fication will achieve LAER in accordance with paragraphs (a) and (b ) of Section 12.3.5.2:

(a) A new major stationary source s hall achieve LAER for each regulated NSR pollutant that it would have t he potential to emit in significant amounts.

(b) A major modification shall achi eve LAER for each regulated NSR pollutant for which it would result in a significant net em issions increase at the stationary source. This r equirement applies to each proposed emissions unit at which a net emi ssions increase in the pollutantwould occur as a result of a physical change, or change in the method of operation, in the emissions unit.

12.3.6 Emissions Offset

12.3.6.1 Sufficiency of Reductions

Prior to issuance of an Authority to Construct Permit fo r a new major stationary source or major modification, the Control Officer shall make a determination that, by the time the source is to commence operation, sufficient offsetting emissions reductions will be surrendered prior to commencing operation, such that allo wable emissions from exis ting sources in the nonattainment area, from new or modified sources which are not major stationary sources, and from the proposed source or modification will be sufficiently less than total emissions from existing sources prior to the application for the offset. At a minimum, this determi nation requires the applicant to satisfy the offset requirements in Section 12.3.6.2.

12.3.6.2 Offset Methods

Pollutant-specific emissions shall be offset with f ederally enforceable ERCs or with internal em ission reductions.

(a) ERCs from one or more sources may be used, alone or in combination with internal emission reducti ons, in order to satisfy offset requirements.

(b) Internal emission reductions used to satisfy offset requirements shall be governed by Sections 12.3. 6.3 through 12.3.6.8 and Section 12.7. 5

, as in effect on September 1, 2010

, and as incorporated herein by this reference.

(c) ERCs used to satisfy offset r equirements shall be governed by Sections 12.3.6.3 through 12. 3.6.6, Section 12.3.6. 8, and Section 12.7. 5

,EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-26 as in effect on September 1, 2010

, and as incorporated herein by this reference.

12.3.6.3 Restrictions on Trading Pollutants

(a) Pursuant to the Nevada Revised Statutes, Section 445.B.508 (2)(c), purchasing or selling credits of one ty pe of pollutant is prohibited if such credits would be used subsequent ly to produce a different type of pollutant.

(b) For the purposes of satisfying the offset requirements with respect to ozone, offsetting of VOC em issions increases with NO X emissions decreases, or NO X emissions increases with VOC emissions decreases, shall not be prohibited trading. The Control Officer may approve interpollutant emission offs ets for precursor pollutants on a

case - by - case basis

, except for PM 2.5 , which is subject to Section 12.3.6.3(c). In such cases, the Co ntrol Officer shall impose, based onan air quality analysis, emission offset ratios in addition to the requirements of Table 12.3-1. PM 10 emissions shall not be allowed to offset nitrogen oxide s or volatile organic compound emissions inozone nonattainment areas. In no case shall the compounds excluded from the definition of volatile organic compounds be used as offsets for volatile organic compounds . Interpollutant emission offsets used at a major stationary source must receive written approval byfrom the U.S. Environmental Protection Agency.

(c) For the purposes of satisfying the o ffset requirements with respect to PM 2.5 , offsetting of PM 2.5 emissions increases with SO 2 sulfur dioxide

or NO x nitrogen oxide emissions decreases, or SO 2 sulfur dioxide or NO x nitrogen oxide emissions increases with PM 2.5 decreases, shall not be prohibited trading. Interpollutant offsets between PM 2.5 and PM 2.5 precursors are not allowed unl ess modeling has been used to demonstrate that PM 2.5 interpollutant offset ratios are appropriate as approved in a PM 2.5 nonattainment plan.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-27 12.3.6.4 Timing

(a) Internal emission reductions used to satisfy an offset requirement must be federally enforc eable at the time of issuance of the Authority to Construct Permit containing the offset requirements.

(b) Except as provided by paragraph (c) of Section 12.3.6.4, the decrease in actual emissions used to generate ERCs or internal emission reductions must occur by no later than the commencement of operation of the new or modifi ed major stationary source.

(c) Where the new facility is a replacem ent for a facility that is being shut down in order to provide the nece ssary offsets, the Control Officer may allow up to one hundred eighty (180) calendar days for shakedown or commissioning of the new fac ility before the existing facility is required to cease operation.

12.3.6.5 Quantity

The quantity of ERCs or in ternal emission reductions required to satisfy offset requirements shall be determined in accordance with the following:

(a) The unit of measure for offsets, ERCs, and internal emission reductions shall be tpy. All calculations and transactions shall use emission rate values rounded to the nearest one one-hundredth (0.01) tpy.

(b) The quantity of ERCs or internal emission reductions required shall be calculated as the pr oduct of the amount of increased emissions, as determined in accordance with par agraph (c) of Section 12.3.6.5, and the offset ratio, as determi ned in accordance with paragraph (d) of Section 12.3.6.5.

(c) The amount of increased emission s shall be determined as follows:

(1) The amount of increased emis sions includes fugitive emissions in the case of all major stationary sources, including categorical sources.

(2) When the offset requirement is triggered by the construction of a new major stationary source, the amount of increased emissions shall be the sum of the PTE of all emissions units.

(3) When the offset requirement is triggered by a major modification of an existing major stationary source, the amount of increased emissions shall be the sum of the differences between the allowable emissions a fter the modification and the actual emissions before the modification for each emissions unit.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-28 (d) The baseline for determining credit for emissions reductions is the emission limit under the St ate Implementation Plan ( including the demonstration of Reas onable Further Progress ), in effect at the time the affected permit application is fil ed, except that the offset baseline shall be the actual emissions of the source from which the offset credit is obtained where:

(1) The demonstration of Reas onable Further Progress and attainment of National Ambient Air Quality Standards is basedupon the actual emissions of sources located within a designated area for which the require ments of Sections 12.2 and 12.4 were adopted; or

(2) The applicable State Implement ation Plan does not contain an emission limitation for the affected source or source category.

(d)(e) The offset ratio shall be expressed as a ratio of emissions reductions to emissions increases.

(1) The following table contains offs et ratios by designated area and pollutant.

(2) The ratios listed in Table 12.3 -1 shall be applied based on the classifications contained in the table for a specific pollutant.

Table 12.3-1. Federal Offset Ratio Requirements by Area Designation and Pollutant

Area Designation Pollutant Offset Ratio
Marginal Ozone Nonattainment Area without Designation NO X 1 .1 :1

VOC 1 .1 :1

Moderate Ozone Nonattainment Area NO X 1.15:1

VOC 1.15:1

Serious Nonattainment Area CO 1:1

PM 10 1:1

(e)(f) The major stationary source shall be given credit for any portion of the NEI that was previously offset. A pre-modification PTE may only include fugitive emissions if the f ugitive emissions were included in the emissions inventory pr ior to the modification.

12.3.6.6 Emission Reduction Requirements

Emission reductions used to satisfy an o ffset requirement shall meet the following requirements:

(a) Emission reductions used to satisfy offset requirements must be real, surplus, permanent, quantifiabl e, and federally enforceable.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-29 (b) Permitted sources whose internal emission reductions are used to satisfy offset requirements must appr opriately amend or cancel their Authority to Construct Permit and/orPart 70 Operating Permit to reflect their new reduced PTE, including practicably enforceable conditions to limit their PTE.

(c) Emission reductions used to satisfy offset requirements must be surplus at the time of issuance of t he Authority to Construct Permit containing the offset requirements.

12.3.6.7 Location of Internal Reductions

Internal emission reductions used to sa tisfy offset requirements shall occur at the same major stationary source at which the increase in emissions occurs. Emission reductions not meeting th is criterion shall meet the requirements for ERCs prescri bed by Section 12.7.

12.3.6.8 Emission Reduction Credit Requirements

ERCs used to satisfy an offset requi rement shall meet the following requirements:

(a) Restrictions on offsetting emissions between airshed regions:

(1) Except as provided by paragraph (a)(2) of Section 12.3.6.8, offsetting emissions from a s ource located within an airshed region with ERCs from a source located in a different airshed region shall not be allowed.

(2) The Control Officer may approve the use of NO X and VOC ERCs between airshed regions for the same nonattainment area within the Clark County boundary to satisfy NO X and VOC offset requirements fo r that nonattainment area.

(b) The source owner or responsible o fficial utilizing ERCs to satisfy offsets must demonstrate to the satisf action of the Control Officer that such utilization will not significantly cause or contribute to a violation of a National Ambient Air Qua lity Standard or an exceedance of a PSD increment identified in Section 12.2.

(c) The use of ERCs shall not provide:

(1) Authority for, or the recogni tion of, any pre-existing vested right to emit any regulated NSR pollutant;

(2) An exemption to a stationary source for emission limitations established in accordance with New Source Performance Standards pursuant to Section 14;EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-30 (3) Authority for, or the recogniti on of, any rights that would be contrary to applicable law; or

(4) An exemption to a stationary source from any other air pollution control requirements of f ederal, state, or county laws, rules, and regulations.

12.3.6.9 ERC Registry

(a) The ERC Registry and its use s hall not interfere wit h the attainment or maintenance of any National Ambient Air Quality Standard.

(b) The ERC Registry and its use s hall assure that the use of ERCs does not contravene applicable require ments of the Act and Nevada Revised Statues (NRS) Chapter 445B.

12.3.7 Source Obligation

12.3.7.1 Enforcement

Any owner or operator who constructs or operates a source or modification not in accordance with the application su bmitted pursuant to Section 12.3 or 12.4 and any changes to the application as required by the Control Officer, or with the terms of its Authority to Construct Permit, or any owner or operator of a source or modification subj ect to Section 12.3 who begins actual construction after the effective date of these AQRs without applying for and receiving an Authority to Construct Pe rmit, shall be subject to enforcement action.

12.3.7.2 Termination

Approval to construct shall terminate if construction is not commenced within eighteen (18) months after receipt ofsuch approval, if construction is discontinued for a period of eighteen (18) mont hs or more, or if construction is not completed within a reasonable time. The Control Officer may extend the 18-month period upon a satisfactory showing of good cause why an extension is justified. This provision does not apply to the time period between construction of the approved phases of a phased construction project; each phase must commence construction within eighteen (18) months of the projected and approved commencement date.

12.3.7.3 Compliance

Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable pr ovisions of the SI P and any other requirements under local, st ate, or federal law.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-31 12.3.7.4 Relaxation in Enforceable Limitations

At such time that a particular stati onary source or modification becomes a major stationary source or major modifica tion solely by virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of the stationary source ormodification otherwise to emit a pollutant, then the requirement s of Sections 12.3.3 th rough 12.3.7 shall apply to the stationary source or modifi cation as though construction had not yet commenced on the stationary source or modification.

12.3.8 Public Participation

Issuance of an Authority to Construc t Permit pursuant to Section 12.3 and Section 12.4 shall be subject to the publ ic participation requirements in Section 12.2.16.

12.3.9 Plantwide Applicability Limits (PAL)

12.3.9.1 Applicability

(a) The Control Officer may approve t he use of an actuals PAL for any existing major stationary source if the PAL meets the requirements inSections 12.3.9.1 through 12.3.9.15. The term “PAL” shall mean “actuals PAL” throughout Section 12.3.9.

(b) Any physical change in, or chan ge in the method of operation of, a major stationary source that main tains its total source-wide emissions below the PAL le vel, meets the require ments of Sections 12.3.9.1 through 12.3.9.14, and complies with the PAL conditions in its Part 70 Operating Permit:

(1) Is not a major modifica tion for the PAL pollutant;

(2) Does not have to be approv ed through the plan’s Nonattainment Major NSR Program; and

(3) Is not subject to the provisions in Section 12.3.7.4.

(c) Except as provided under paragraph (b)(3) of Section 12.3.9.1, a major stationary source shall continue to comply with all applicable federal or state requirements, emissi on limitations, and work practice requirements that were established prior to the effe ctive date of the PAL.

12.3.9.2 Definitions

Unless the context otherwise requires, the following terms shall have the meanings set forth below for the purposes of Section 12.3.9. When a term isEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-32 not defined in these paragraphs, it sha ll have the meaning given in Section 12.3.2, Section 0, or in the Act.

(a) "Actuals PAL for a major stati onary source" means a PAL based on the baseline actual emissions of all emissions units at the source that emit, or have the potential to emit, the PAL pollutant.

(b) "Allowable emissions" means allowa ble emissions as defined in paragraph (b) of Section 12.3.2, except as this defini tion is modified according to paragraphs (1) and (2) below:

(1) The allowable emissions for any emissions unit shall be calculated considering any emission lim itations that are enforceable as a practical matter on the emissions unit’s PTE.

(2) An emissions unit’s PTE sha ll be determined using the definition in paragraph (d)(d) of Secti on 12.3.2, except that the words “or enforceable as a practical matter” should be added after “Federally Enforceable.”

(c) "Major emissions unit" means:

(1) Any emissions unit t hat emits, or has the potential to emit, 100 tpy or more of the PAL pollut ant in an attainment area; or

(2) Any emissions unit th at emits, or has the potential to emit, the PAL pollutant in an am ount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the Act for nonattainment areas.

(d) "PAL" means an emission limitation, expressed in tpy, for a pollutant at a major stationary source, that is enforceable as a practical matter and established source-wide in a ccordance with Sections 12.3.9.1 through 12.3.9.15.

(e) "PAL effective date" generally means the date of issuance of the Part 70 Operating Permit cont aining the PAL condition s, or the date on which a significant permit revision containing the PAL conditions becomes effective. However, the PAL effective date for an increased PAL is the date any emissions unit which is part of the PAL major modification becomes operational and begins to emit the PAL pollutant.

(f) "PAL effective period" means th e period beginning with the PAL effective date and ending ten (10) years later.

(g) "PAL major modification" means, notwithstanding the definitions for major modification and net emissions increase, any physical changeEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-33 in, or change in the method of oper ation of, the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL.

(h) "PAL pollutant" means the pollutant for which a PAL is established at a major stationary source.

(i) “Project” means a physical change in, or change in the method of operation of, an existing stationary source.

(j) "Significant emissions unit" means an emissions unit that emits, or has the potential to emit, a PAL pollut ant in an amount that is equal to or greater than the significant level as defined in paragraph (m)(m) Section 12.3.2 or in the Act, whichev er is lower, for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit.

(k) "Small emissions unit" means an em issions unit that emits, or has the potential to emit, the PAL po llutant in an amount less than the significant level as defined in paragraph (m)(m) Section 12.3.2 or in the Act, whichever is lower, for that PAL pollutant.

12.3.9.3 Permit Application Requirements

As part of an application for a Part 70 Operating Permit requesting a PAL, the owner or operator of a major stationary source s hall submit the following information to the Contro l Officer for approval:

(a) A list of all emissions units at t he source designated as small, significant, or major based on their PTE. In addition, the owner or operator of the source shall indicate which, if any, federal, state or county applicable requirements, emission limi tations, or work practices apply to each unit;

(b) Calculations of the baseline actu al emissions (with supporting documentation). Baseline actual emissions are to include emissions associated not only with operat ion of the unit, but also emissions associated with startup, shut down, and malfunction;

(c) The calculation proce dures that the major stationary source owner or operator proposes to use to conver t the monitoring system data to monthly emissions and annual em issions based on a 12-month rolling total for each month, as re quired by paragraph (a) of Section 12.3.9.13.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-34 12.3.9.4 General Requirements for Establishing PALs

(a) The Control Officer may establis h a PAL at a major stationary source, provided that, at a minimu m, the requirements in paragraphs (a)(1) through (a)(7) of Se ction 12.3.9.4 are met.

(1) The PAL shall impose an annual emission limitation, in tpy, that is enforceable as a practi cal matter, for the entire major stationary source. For each mo nth during the PAL effective period after the first twelve (12) months of establishing a PAL, the major stationary source owne r or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous twelve (12) consecutive months is less than the PA L (a 12-month average, rolled monthly). For each month during the first eleven (11) months from the PAL effective date, t he major stationary source owner or operator shall show that t he sum of the preceding monthly emissions from the PAL effectiv e date for each emissions unit under the PAL is less than the PAL.

(2) The PAL shall be established in a Part 70 Operating Permit as a significant permit revision.

(3) The Part 70 Operating Permit shall contain all the requirements of Section 12.3.9.7.

(4) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pol lutant at the majo r stationary source.

(5) Each PAL shall regulate em issions of only one pollutant.

(6) Each PAL shall have a PAL effe ctive period of t en (10) years.

(7) The owner or operator of the major stationary source with a PAL shall comply with the moni toring, recordkeeping, and reporting requirements provided in Sections 12.3.9.12 through 12.3.9.14 for each emissions unit under the PAL through the PAL effective period.

(b) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant, which occur during the PAL effective period, creditable as decreases fo r purposes of offsets under Section 12.3.6 unless the level of the PAL is reduced by the amount of such emissions reductions and such reducti ons would be cred itable in the absence of the PAL.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-35 12.3.9.5 Public Participat ion Requirements for PALs

PALs for existing major stationary source s shall be established, renewed, or increased through the public participati on procedures in Section 12.2.16.

12.3.9.6 Setting the 10-year Actuals PAL Level

(a) Except as provided in paragraph (b ) of Section 12.3.9.6, the Actuals PAL level for a major stationary s ource shall be established as the sum of the baseline actual emissions of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollu tant under these AQRs or under the Act, whichever is lower. When est ablishing the actuals PAL level for a PAL pollutant, only one consecutiv e 24-month period must be used to determine the baseline actual em issions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollu tant. Emissions associated with units that were permanently shut down after this 24-month period must be subtracted from the PAL level. The Control Officer shall specify a reduced PAL level(s) (in t ons/yr) in the Part 70 Operating Permit to become effective on the future compliance date(s) of any applicable federal or stat e regulatory requirement(s) that the Control Officer is aware of prior to issuance of the permit.

(b) For newly constructed units (whi ch does not include modifications to existing units) on which actual co nstruction began after the 24-month period, in lieu of adding the baseline actual emi ssions as specified in paragraph (a) of Section 12.3.9.6, the emissions must be added to the PAL level in an amount equal to the PTE of the units.

12.3.9.7 Part 70 Operati ng Permits with PALs

Contents of a Part 70 Operating Permi t containing a PAL shall include the information in paragraphs (a) through (j) of Section 12.3.9.7:

(a) The PAL Pollutant and the applic able source-wide emission limitation in tpy;

(b) The effective date and the expirati on date of the PAL conditions (PAL effective period).

(c) Specification in the permit that if a major st ationary source owner or operator applies to renew the PAL conditions in accordance with Section 12.3.9.9 before t he end of the PAL effe ctive period, then the PAL conditions shall not expire at the end of the PAL effective period.It shall remain in effect until a revised Part 70 Operating Permit is issued by the Control Officer.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-36 (d) A requirement that emission calc ulations for compliance purposes include emissions from startups , shutdowns, and malfunctions;

(e) A requirement that, once the PAL conditions expire, the major stationary source is subject to the requirements of Section 12.3.9.9;

(f) The calculation proce dures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total, as required by paragraph (a) of Section 12.3.9.13;

(g) A requirement that the major st ationary source owner or operator monitor all emissions units in a ccordance with the provisions under Section 12.3.9.12;

(h) A requirement to retain the records required under Section 12.3.9.13 on-site. Such records may be retain ed in an electronic format;

(i) A requirement to submit the r eports required under Section 12.3.9.14 by the required deadlines; and

(j) Any other requirement s that the Control Offic er deems necessary to implement and enforce the PAL conditions.

12.3.9.8 PAL Effective Period and Reopening of PAL Conditions

The plan shall require the information in paragraphs (a) and (b) of Section 12.3.9.8.

(a) PAL Effective Period. The Contro l Officer shall specify a PAL effective period of ten (10) year s from the date of issuance.

(b) Reopening of the PAL conditions in a Part 70 Operating Permit.

(1) During the PAL effective period, the plan shall require the Control Officer to reopen the PAL conditions in a Part 70 Operating Permit to:

(A) Correct typographical/calculat ion errors made in setting the PAL, or reflect a more accurate determination of emissions used to establish the PAL;

(B) Reduce the PAL if the owner or operator of the major stationary source creates credit able emissions reductions for use as offsets under Section 12.3.6; or

(C) Revise the PAL to reflect an increase in the PAL as provided under Section 12.3.9.11.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-37 (2) The Control Officer may reopen the PAL conditions in a Part 70 Operating Permit for the following:

(A) Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date.

(B) Reduce the PAL consistent with any other requirement that is enforceable as a practical matter, and that the Control Officer may impose on the major stationary source under the Nevada SIP.

(C) Reduce the PAL if the Cont rol Officer determines that a reduction is necessary to avoid causing or contributing to a National Ambient Air Qual ity Standard or PSD increment violation, or to an adv erse impact on an air-qualityrelated value that has been ident ified for a federal Class Iarea by a Federal Land Manager and for which information is available to the general public.

(3) Except for the permit reopening in paragraph (b)(1)(A) of Section 12.3.9.8 for the correction of typographical/calculation errors that do not increase the PAL level, all other reopenings shall be carried out as significant permit revisions to a Part 70 Operating Permit.

12.3.9.9 Expiration of a PAL

Any PAL which is not renewed in acco rdance with the procedures in Section 12.3.9.10 shall expire at the end of the PAL effective period, and the requirements in paragraphs (a) through (e ) of Section 12.3.9.9 shall apply.

(a) Each emissions unit (or each group of emissions units ) that existed under the PAL shall comply with an allowable emission limitation under a revised Part 70 Operating Permit established according to the procedures in paragraphs (a)(1) and (a)(2) of Section 12.3.9.9.

(1) Within the time frame specifi ed for PAL renewals in paragraph (b) of Section 12.3.9.10, the major stationary source shall submit a proposed allowable em ission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the Control Officer) by distributing the PAL allowabl e emissions for the affected major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under paragraph (e)EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-38 of Section 12.3.9.10, such distri bution shall be made as if the PAL had been adjusted.

(2) The Control Officer will decid e whether and how the PAL allowable emissions will be distri buted and issue a revised Part 70 Operating Permit incorporati ng allowable limits for each emissions unit, or each group of emissions units, as the Control Officer determines is appropriate.

(b) Each emissions unit(s) shall co mply with the allowable emission limitation on a 12-month rolling basis. The Control Officer may approve the use of monitoring systems other than CEMS, CERMS, PEMS, orCPMS to demonstrate compliance with the allowable emission limitation.

(c) Until the Control Officer issues the revised Part 70 Operating Permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under paragraph (a)(2) of Section 12.3.9.9, the source shall conti nue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation.

(d) Any physical change or change in the method of operation at the major stationary source will be subject to the nonattainment major NSR requirements if such change meets the definition of major modification.

(e) The major stationary source owner or operator shall continue to comply with any federal, state or county applicable requirements that may have applied either during the PAL effective period or prior to the PAL effective period except as provided in paragraph (b)(3) of Section 12.3.9.1.

12.3.9.10 Renewal of a PAL

(a) The Control Officer will follow the procedures specif ied in Sections 12.3.9.5 and 12.5 in a pproving any request to renew the PAL conditions in a Part 70 Operating Permit for a major stationary source, and will provide both the proposed PAL le vel and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the Control Officer.

(b) Application deadline. A major stat ionary source owner or operator shall submit a timely application to the Control Officer to request renewal of the PAL conditions in a Part 70 Operating Permit. A timely application is one that is submitted at least six (6) months prior to, but not earlier than ei ghteen (18) months prior to, the date of expirationEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-39 of the Part 70 Operating Permit. This deadline for application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew t he PAL conditions in a Part 70 Operating Permit within this time per iod, then the PAL conditions shall continue to be effective until the revised permit with the renewed PAL conditions is issued.

(c) Application Requirements. The application to renew PAL conditions shall be incorporated in the application for renewal of the affected Part 70 Operating Permit and shall contain the information required in paragraphs (c)(1) through (c)(4) of Section 12.3.9.10:

(1) The information required in par agraphs (a) through (c) of Section 12.3.9.3;

(2) A proposed PAL level;

(3) The sum of the PTE of all em issions units under the PAL (with supporting documentation); and

(4) Any other information the ow ner or operator wishes the Control Officer to consider in dete rmining the approp riate level for renewing the PAL conditions.

(d) PAL Adjustment. In determining whether and how to adjust the PAL, the Control Officer will considerthe options outlined in paragraphs (d)(1) and (d)(2) of Section 12.3.9.10. However, in no case may any such adjustment fail to co mply with paragraph (d)(3) of Section 12.3.9.10.

(1) If the emissions level calculat ed in accordance with Section 12.3.9.5 is equal to or greater than eighty (80) percent of the PAL level, the Control Officer ma y renew the PAL at the same level without considering the fa ctors set forth in paragraph (d)(2) of Section 12.3.9.10; or

(2) The Control Officer may set the PAL at a level that he determines to be more representative of the source’s baseline actual emissions, or that he determines to be appropriate considering air quality needs, advanc es in control technology, anticipated economic gr owth in the area, desire to reward or encourage the source’s volunt ary emissions reductions, or other factors as specifically iden tified by the Control Officer in his written rationale.

(3) Notwithstanding paragraphs (d)(1) and (d)(2) of Section 12.3.9.10:EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-40 (A) If the PTE of the major stationary source is less than the PAL, the Control Officer shall adjust the PAL to a level no greater than the PTE of the source; and

(B) The Control Officer shall not approve renewed PAL level higher than the current PAL unless the major stationary source has complied with the provisions of Section 12.3.9.11.

(e) If the compliance date for a federal or state requirement that applies to the PAL source occurs during t he PAL effective period, and if the Control Officer has not already adj usted for such requirement, the PAL shall be adjusted at the time of the affected Part 70 Operating Permit is renewed.

12.3.9.11 Increasing a PAL duri ng the PAL Effective Period

(a) The Control Officer may increase a PA L emission limitation only if the major stationary source complies wit h the provisions in paragraphs (a)(1) through (a)(4) of Section 12.3.9.11.

(1) The owner or operator of t he major stationary source shall submit a complete application to request an increase in the PAL limit as a significant revision to the affected Part 70 Operating Permit. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source’s emi ssions to equal or exceed its PAL.

(2) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small em issions units, plus the sum of the baseline actual emissions of the significant and major emissions units, assuming app lication of BACT-equivalent controls, plus the sum of the al lowable emissions of the new or modified emissions unit(s), exc eeds the PAL. The level of control that would result from BAC T-equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding ten (1 0) years. In such a case, the assumed control level for that em issions unit sh all be equal to the level of BACT or LAER with which that emissions unit must currently comply.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-41(3) The owner or operator obtains an Authority to Construct Permit pursuant to Section 12.4 for all emissions unit(s) identified in paragraph (a)(1) of Section 12.3.9.11, regardless of the magnitude of the emissions in crease resulting from them.These emissions unit(s) shall comply with any emissions requirements resulting from the nonattainment Authority to Construct Permit issuance proce ss, even though they have also become subject to the PAL or continue to be subject to the PAL.

(4) The PAL conditions in a Part 70 Operating Permit shall require that the increased PAL level sha ll be effective on the day any emissions unit that is part of t he PAL significant permit revision becomes operational and begins to emit the PAL pollutant.

(b) The Control Officer shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissi ons of the significant and major emissions units (assuming applicati on of BACT-equivalent controls as determined in accordance wit h paragraph (a)(2) of Section 12.3.9.11), plus the sum of the baseline actual emissions of the small emissions units.

(c) The PAL conditions in a Part 70 Operating Permit shall be revised to reflect the increased PAL level purs uant to the public notice requirements of Section 12.3.9.5.

12.3.9.12 Monitoring Re quirements for PALs

(a) General requirements.

(1) The PAL conditions in a Part 70 Operating Permit must include enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per uni t of time. Any monitoring system authorized for use in the PAL conditions must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulat ion. Additionally, the information generated by such syst em must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL conditions.

(2) The PAL monitoring system must employ one or more of the four (4) general monitoring ap proaches meeting the minimum requirements set forth in paragraphs (b)(1) through (b)(4) of Section 12.3.9.12 and must be approved by the Control Officer.EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-42 (3) Notwithstanding paragraph (a)( 2) of Section 12.3.9.12, thePAL monitoring system may also employ an alternative monitoring approach that meets paragraph (a)(1) of Section 12.3.9.12 if approved by the Control Officer.

(4) Failure to use a monitoring system that meets the requirements of Section 12.3.9.12 renders the PAL invalid.

(b) Minimum performance requirem ents for approved monitoring approaches. The following are acc eptable general monitoring approaches when conducted in acco rdance with the minimum requirements in paragraphs (c) through (i) of Section 12.3.9.12:

(1) Mass balance calculations for ac tivities using coatings or solvents;

(2) CEMS;

(3) CPMS or PEMS; and

(4) Emission factors.

(c) Mass Balance Calculations. An owner or operat or using mass balance calculations to monitor PAL pol lutant emissions from activities using coatings or solvents shall meet the followin g requirements:

(1) Provide a demonstrated means of validating the published content of the PAL pollu tant that is contained in or created by all materials used in or at the emissions unit;

(2) Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and

(3) Where the vendor of a material or fuel which is used in or at the emissions unit publishes a ra nge of pollutant content from such material, the owner or oper ator must use the highest value of the range to calculate t he PAL pollutant emissions unless the Control Officer determines there is site-specific data or a site-specific monitoring pr ogram to support another content within the range.

(d) CEMS. An owner or operator using CE MS to monitor PAL pollutant emissions shall meet the following requirements:

(1) The CEMS must comply with applicable performance specifications found in 40 CFR Part 60, Appendix B; andEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-43 (2) The CEMS must sample, analyze, and record data at least every fifteen (15) minutes while the emissions unit is operating.

(e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions s hall meet the following requirements:

(1) The CPMS or PEMS must be based on current site-specific data demonstrating a correlati on between the monitored parameter(s) and the PAL pollutan t emissions across the range of operation of the emissions unit; and

(2) Each CPMS or PEMS must sample, analyze, and record data at least every fifteen (15) minut es, or at another, less frequent interval approved by the Cont rol Officer while the emissions unit is operating.

(f) Emission Factors. An owner or operator using emission factors to monitor PAL pollutant emissions s hall meet the following requirements:

(1) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors’ development;

(2) The emissions unit shall oper ate within the designated range of use for the emission factor, if applicable; and

(3) If technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall co nduct validation testing to determine a site-specific emission fa ctor within six (6) months of permit issuance unless the Control Officer determines that testing is not required.

(g) A source owner or operator mu st record and report maximum potential emissions without considering enf orceable emission limitations or operational restrictions for an emi ssions unit during any period of time whenever there is no monito ring data unless another method for determining emissions during such peri ods is specified in the Part 70 Operating Permit containing the PAL.

(h) Notwithstanding the requirements in paragraphs (c) through (g) of Section 12.3.9.12, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points ofEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-44 the emissions unit, the Control Officer shall, at the time of permit issuance:

(1) Establish default value(s) for determining compliance with the PAL based on the highest potent ial emissions reasonably estimated at such operating point(s); or

(2) Determine that operation of th e emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL.

(i) Revalidation. All data used to establis h the PAL pollutant must be revalidated through performance testi ng or other scientifically valid means approved by the Control Office r. Such testing must occur at least once every five (5) years afte r issuance of the Part 70 Operating Permit containing the PAL conditions.

12.3.9.13 Recordkeeping Requirements

(a) The PAL conditions shall require an owner or operator to retain acopy of all records necessary to determine compliance with any requirement of Section 12.3.9 and ofthe PAL, including a determination of each emissions unit’s 12-month rolling total emissions, for five (5) years from the date of such record.

(b) The PAL conditions in a Part 70 Operating Permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective per iod plus five (5) years:

(1) A copy of the PAL provisions in the Part 70 Operating Permit application and any applications fo r revisions to the Part 70 Operating Permit; and

(2) Each annual certification of compliance pursuant to the conditions in the affected Part 70 Operating Permit and the data relied on in certifying the compliance.

12.3.9.14 Reporting and No tification Requirements

The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the Contro l Officer, in accordance with the conditions in the affected Part 70 Operat ing Permit. The reports shall meet the requirements in paragraphs (a) th rough (c) of Section 12.3.9.14.

(a) Semiannual Report. The semiannual report shall be submitted to the Control Officer within thirty ( 30) days of the end of each reportingEXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-45 period. This report shall contain the information required in paragraphs (a)(1) through (a)(7 ) of Section 12.3.9.14:

(1) The identification of owner and operator and the permit number;

(2) Total annual emissions (in tpy) based on a 12-month rolling total for each month in the reporting period.

(3) All data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL pollutant emissions;

(4) A list of any emissions units modified or added to the major stationary source during t he preceding 6-month period;

(5) The number, durati on, and cause of any deviations or monitoring malfunctions (other than th e time associated with zero and span calibration checks), and any corrective action taken;

(6) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or te mporary, the reason for the shutdown, the anticip ated date that the monitoring system willbe fully operational or replaced with another monitoring system, whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by paragraph (g) of Section 12.3.9.12; and

(7) A signed statement by the resp onsible official certifying the truth, accuracy, and completeness of the information provided in the report.

(b) Deviation Report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL conditions, including periods w here no monitoring is available. A report submitted pursuant to 40 CF R 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The devia tion reports shall be submitted within the time limits pr escribed by the affe cted Part 70 Operating Permit. The reports shall cont ain the following information:

(1) The identification of ownerand operator and the permit number;

(2) The PAL requirement that ex perienced the deviation or that was exceeded;EXHIBIT 6

Adopted 05-18-10 CC Air Quality Regulations 12.3-46 (3) Emissions resulting from the deviation or the exceedance; and

(4) A signed statement by the resp onsible official certifying the truth, accuracy, and completeness of the information provided in the report.

(c) Revalidation Results. The owner or operator shall submit to the Control Officer the results of any revalidation test or method within three (3) months after completi on of such test or method.

12.3.9.15 Transition Requirements

(a) The Control Officer may not issue a PAL that does not comply with the requirements in Sections 12.3 .9.1 through 12.3.9.15 after the Administrator has approved regulati ons incorporating these requirements into the Nevada SIP.

(b) The Control Officer may superse de any PAL which was established prior to the date of approval of t he Nevada SIP by the Administrator with a PAL that complies with the r equirements of Sections 12.3.9.1 through 12.3.9.15.

12.3.10 Potential Visibility Impacts

The Control Officer shall consult with the Federal Land Manager on a proposed major stationary source or major modification that may impact visibility in any Class I Area, in a ccordance with 40 CFR 51.307.

12.3.11 Invalidation

If any provision of Section 12.3, or t he application of such provision to any person or circumstance, is held invalid, the remainder of Section 12.3, or the application of such provision to pers ons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

History: Adopted May 18, 2010