EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-i SECTION 12.4: AUTHORITY TO CONSTRUCT APPLICATION AND PERMIT REQUIREMENTS FOR PART 70 SOURCES

12.4 AUTHORITY TO CONSTRUCT PERM IT REQUIREMENTS FOR PART 70 SOURCES ............................................................................................................ 1 12.4.1 Authority to Construct Pe rmit Required; Durati on ................................... 1 12.4.1.1 Commencement of Construction: Timing Requirements ......... 1 12.4.2 Definitions ............................................................................................... 1 12.4.2.1 Use of Te rms .......................................................................... 1 12.4.3 Authority to Construct Permi t for Part 70 Sources .................................. 5 12.4.3.1 Application Submission, Processing and Issuance Requirements for Stationary Sour ces Subject to Sections 12.2 or 12.3 ............................................................................. 5 12.4.3.2 Application Submission and Proc essing Requirements for Part 70 Sources Not Subject to Sect ion 12.2, Section 12.3, or Section 12. 4.3.3 .................................................................... 11 12.4.3.3 Application Submission and Processing Requirements for Construction or Reconstruction of a Part 70 Source Subject to a Standard under Sections 112(d), (f ), or (h) of the Act (a MACT sour ce) ....................................................................... 12 12.4.3.4 Authority to Construc t Permit Revi sions ................................ 12 12.4.3.5 Administrative Permit Revisions for Title IV Acid Rain Sources ................................................................................. 14EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-1 12.4 AUTHORITY TO CONSTRUCT PERMI T REQUIREMENTS FOR PART 70 SOURCES

12.4.1 Authority to Construc t Permit Required; Duration

12.4.1.1 Commencement of Constr uction: Timing Requirements

(a) No person shall begin actual cons truction of a New Part 70 source, or modify or reconstruct an existing Part 70 source that falls within the preconstruction review applicabili ty criteria, without first obtaining an Authority to Construct Permi t from the Control Officer.

(b) If a person commences the construc tion, modification, or reconstruction of a Part 70 source within eight een (18) months after the date of issuance of an Authority to Construct Permit and construction is not discontinued for a peri od greater than twelve (12) months, and provided that a timely and complete Part 70 Operating Permit application is submitted pursuant to Sect ion 12.5.2.1, the Authority to Construct Permit shall remain in e ffect until a Part 70 Operating Permit is granted or denied, or the modification or reconstruction is incorporated into a Part 70 Operating Permit through a permit revision.

(c) Notwithstanding the pr ovisions of paragraph (b) of Section 12.4.1.1, if an existing Part 70 Operating Permit w ould prohibit such construction or change in operation, the source must obtain a Part 70 permit revision pursuant to Section 12.5.2. 14 before commencing operation.

12.4.2 Definitions

12.4.2.1 Use of Terms

The following definitions apply to te rms used in Section 12.4. Unless the context requires otherwise, the followin g terms shall have the meanings set forth for the purposes of Se ction 12.4. When a term is not defined, it shall have the meaning provided in Section 0, 40 CFR 70.2, the Act, or common usage, in that order of priority.

(a) “Existing Part 70 source” means a Part 70 source that either has a valid Part 70 Operating Permit issued prior to the effective date of Section 12.4 or has an applicati on for a Part 70 Operating Permit deemed complete prior to the ef fective date of Section 12.4.

(b) “Minor NSR significant levels” m eans an increase in the potential to emit that equals or ex ceeds the following rate s for the pollutants listed:EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-2 Type of Air Pollutant Potential to Emit (tpy)

PM 2.5 , directly emitted 5.0

PM 10 7.5
CO 50
VOC 20
NO x20
SO 2 20 Lead (Pb) 0.6

H 2 S 5
Total Reduced Sulfur (including H 2 S) 5

(c) "Modification" or "Modify" means a project which meets any of the preconstruction review applicability cr iteria in paragraph (e) of Section 12.4.2.1 or that r equires a minor or significant permit revision pursuant to Section 12.5.2.14.

(d) “New Part 70 source” means a Part 70 source that is not an existing Part 70 source.

(e) “Preconstruction review applicabilit y criteria” means any of the following:

(1) At an existing major stationary so urce, a project that will result in a “major modification” as def ined in Sections 12.2 or 12.3;

(2) A new Part 70 source or a modi fication to an existing Part 70 source that is subject to Section 12.4.3.2;

(3) Any project that is subject to a standard, limitation, or other requirement under 40 CFR Part 60;

(4) Any project that is subject to a standard under 40 CFR Part 63, including, but not limited to, cons truction or reconstruction that requires preconstruction review under 40 CFR § 63.5; or

(5) For a solid waste incineration un it, a project that will result in a modification for purposes of Section 129(g)(3) of the Act.

(f) “Project” means a physical chan ge in, or change in the method of operation of, a major stationaryPart 70 source.
For purposes of this definition, a physical change or change in the method of operation shall not include:

(1) Routine maintenance, repair and replacement.EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-3 (2) Use of an alternative fuel or raw material by reason of any order under Section 2 (a) and (b) of t he Energy Supply and Environmental Coordination Act of 1974 (o r any superseding legislation) or by reason of a natural gas cu rtailment plan pursuant to the Federal Power Act.

(3) Use of an alternative fuel by reason of an order or rule under Section 125 of the Act.

(4) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste.

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

(A) The source was capable of accommodating before January 6, 1975, unless such chang e would be prohibited under any federally enforceable pe rmit condition which was established after January 6, 1975 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51 Subpart I; or

(B) The source is approved to use under any permit issued under 40 CFR 52.21 or under re gulations approved pursuant to 40 CFR Part 51, Subpart I.

(6) An increase in the hours of oper ation or in the production rate, unless such change would be prohi bited under any federally enforceable permit condition which was established after January 6, 1975, pursuant to 40 CFR 52. 21 or under regulations approved pursuant to 40 CFR Subpart I or 51.166.

(7) Any change in ownership at a stationary source.

(8) The installation, operation, cess ation, or remova l of a temporary clean coal technology demonstration project, provided that the project complies with:

(A) The Nevada State Im plementation Plan and;

(B) Other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated.

(9) The installation or operation of a permanent clean coal technology demonstration project that co nstitutes repowering, provided that the project does not result in an increase in the potential toEXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-4 emit of any regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis.

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

(g) “Responsible official” m eans one of the following:

(1) For a corporation: a president, secretary, treasurer, or vicepresident of the corporation in charge of a principal business function, or any other person wh o performs similar policy or decision-making functions for the cor poration, or a duly authorized representative of such person if the representative is responsible for the overall operation of one or more manufacturing, production, or operating facilities appl ying for or subject to a permit and either:

(A) The operating facilities empl oy more than 250 persons or have gross annual sales or ex penditures exceeding $25 million in second quarter 1980 dollars; or

(B) The delegation of authority to such representative is approved in advance by the Control Officer.

(2) For a partnership or sole propr ietorship: a general partner or the proprietor, respectively;

(3) For a municipality, st ate, federal, or other public agency: either a principal executive officer or ra nking elected official. For the purposes of this definition, a prin cipal executive officer of a federal agency includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency; or

(4) For Title IV affected sources:

(A) The designated representativ e, as defined in 40 CFR 72.2, insofar as actions, standards, r equirements, or prohibitions under Title IV of the Act, “Aci d Deposition Control,” or the regulations promulgated ther e under are concerned; or

(B) The responsible official as defined above for any other purposes under Section 12.4.EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-5 12.4.3 Authority to Construct Permit for Part 70 Sources

12.4.3.1 Application Subm ission, Processing and Issu ance Requirements for Stationary Sources or Modifications Subject to Sections 12.2 or 12.3

(a) Application Requirements

An application for an Authority to Construct Permit shall be submitted on a form provided by the Control Officer. The applic ation shall contain the following information related to the construction or project:

(1) A description of all emissions of regulated air pollutants from all affected emissions units and a projected operating schedule for each emissions unit;

(2) An identification and a descripti on of all points of emissions and a process description of all acti vities, including design capacity, which may generate emissions of the regulated air pollutants described pursuant to paragraph (a )(1) of Section 12.4.3.1 in sufficient detail to establish the basis for the applicability of standards and fees;

(3) The emission rates of all regulat ed air pollutants, including fugitive emission rates. The emissi on rates must be described in tons per year and for such shor ter-term averages as are necessary to establish compliance us ing the applicable standard reference test method or other meth odology specified in paragraph (a)(7) of Section 12.4.3.1;

(4) A description of any new or modified air pollution control equipment to be operated at the stationary source;

(5) The calculations on which t he information described in Section 12.4.3.1 are based, including a fuel description and specifications;

(6) Citations to and a description of all applicable requirements;

(7) The applicable test method or other methodology used for determining compliance with each applicable requirement;

(8) A control technology demonstration for RACT shall be submitted for a modification to an existing Part 70 source that requires an Authority to Construct Permit bec ause: (i) the modification will increase the source’s potential to emit by an amount that is equal to or greater than the minor NSR significant level in paragraph (b) of Section 12.4.2.1; and (ii) a control technology demonstration is not ot herwise required by Section 12.2 or 12.3EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-6 or ( iii) the modification will be major for one pollutant and will increase the source’s potential to emit by an amount equal to or greater than the minor NSR signifi cant level for one or more pollutants that are not part of or precursors to the pollutant associated with the major modification

. The RACT control technology demonstration shall only apply to the pollutant (s) exceeding the minor NSR significant level. Th e application shall describe how RACT was determined and how co mpliance with RACT is to bemeasured, including, if applicable, material usage limits, performance testing and continuous emissions monitoring.

(9) If applicable, a description of how performance testing will be conducted, including test met hods and a general description of testing protocols;

(10) If applicable, the information necessary to establish a basic design parameter;

(11) If applicable, a description of how the permittee proposes to comply with the compliance a ssurance monitoring requirements in 40 CFR Part 64, including a plan describing how the applicant will comply with the monitoring des ign criteria in 40 CFR 64.3; and

(12) If any information or data in the application is proposed to be treated as confidential, a demons tration of compliance with the Certification of Confidentiality procedures in Section 12.6.1.

(13) If the applicant wishes to be s ubject to the enhanced public participation procedures in Section 12.2.16.6, a declaration to that effect.

(b) Additional Application Requireme nts for Sources Subject to Section 12.2 (Major Source PSD)

If the new or modified Part 70 source is subject to the Prevention of Significant Deteriorati on preconstruction review provisions of Section 12.2, the application shall also contain the following:

(1) The control technology review required by Section 12.2.9;

(2) The source impact analysis required by Section 12.2.10;

(3) The air quality analysis r equired by Section 12.2.12;

(4) The source information required by Section 12.2.13;

(5) The additional impact analyses re quired by Section 12.2.14; andEXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-7 (6) Any other information that th e Control Officer determines is necessary to process the applicat ion in accordance with Section 12.2 or Section 12.3.

(c) Additional Application Requirem ents For Sources Subject to Section 12.3 (Major Source Nonattainment NSR)

If the new or modified Part 70 source is subject to the nonattainment area preconstruction review provisi ons of Section 12.3, the application shall also contain the following:

(1) The statewide compliance demons tration required by Section 12.3.3;

(2) The alternatives analysis required by Section 12.3.4;

(3) The LAER demonstrat ion and draft permit conditions required to ensure compliance with LAER required by Section 12.3.5.2;

(4) An air impact analysis including dispersion modeling;

(5) The information necessary to demonstrate that the applicant has satisfied or will satisfy the emissions offset requirements in Section 12.3.6; and

(6) Any other information that th e Control Officer determines is necessary to process the applicat ion in accordance with Section 12.2 or Section 12.3.

(d) Application Processing Procedures

Any application for a new or modifi ed Part 70 source subject to paragraph (a) of Section 12.4.3.1 sha ll be processed in accordance with the following procedures:

(1) Within one hundred (100) days a fter the date of receipt of anapplication for an Authority to Construct Permit, the Control Officer shall determine if the applicat ion is complete. If substantialadditional information is required, the Control Officer shall determine that the application is incomplete and return the application to the applicant. If substantial additional information is not required, the Control Officer sh all determine the application to be complete.

Unless the Control Officer determi nes that the application is incomplete within one hundred (100) days after the date of receipt of the application, the official dat e of submittal of the application shall be deemed to be the date on which the Control Officer de-EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-8 termines that the application is complete or the 101st day after the date of receipt, whichever is earlier. Within one year afterthe date the application is determined to be complete, the Control Officer shall initiate the pu blic participation procedures in Section 12.2.16.

(2) If, after the date the application is determined to be complete, the Control Officer discovers that additional information is required to act on the application, the Control Officer may request additional information necessary to determine whether the proposed project will comply with all of the applicable requirements set forth in Section 12.2 or Sect ion 12.3, as ap plicable. The applicant must provide in writing any additional information that the Control Officer requests within the time specified in the written request of the Control Officer. Any delay in the submittal of the requested information may result in a corresponding delay in theaction of the Control Officer on the application or a determination of incompleteness.

(2)(3) The Control Officer shall not i ssue an authority to construct or permit to operate unless, afte r the date an application is determined to be complete, the Cont rol Officer determines that the new or modified source will me et all applicable requirements of Section 12.

(e) Permit Content

An Authority to Construct Permit issued pursuant to Section 12.4 shall contain each of the following conditions:

(1) The permittee shall retain reco rds of all required monitoring and performance demonstration data and supporting information for five (5) years after the date of the sample collection, measurement, report, or analysis. Supp orting information includes all records regarding calibration and ma intenance of the monitoring equipment, all original strip-chart recordings for continuous monitoring instrumentation, and if applicable, all other records required to be maintained pursuant to 40 CFR 64.9(b).

(2) Each of the conditions and requirements of the permit is severable and, if any are held invalid , the remaining conditions and requirements continue in effect;

(3) The permittee shall comply with all conditions contained in the permit. Any noncompliance constitutes a violation and is grounds for:EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-9 (A) An action for noncompliance;

(B) Revocation and reissuance or the termination of the permit by the Control Officer; or

(C) The reopening or revising of the permit by the permittee as directed by the Control Officer.

(4) The need to halt or reduce activity to maintain compliance with the conditions of the permit is not a defense to noncompliance with any condition of the permit;

(5) The Control Officer may revise , revoke and reissue, reopen and revise, or terminate th e permit for cause;

(6) The permit does not convey any property rights or any exclusive privilege;

(7) The permittee shall provide t he Control Officer, within a reasonable time, with any information that the Control Officer requests in writing to determine whether c ause exists for revising, revoking and reissuing, or terminati ng the permit, or to determine compliance with the conditions of the permit. Upon request, the permittee shall also furnish to t he Control Officer copies of records required to be kept by the permit or, for info rmation claimed to be confidential, the permittee ma y furnish such records directly to the Administrator along wi th a claim of confidentiality;

(8) The permittee shall allow the Cont rol Officer, or any authorized representative of t he Control Officer, upon presentation of credentials, to enter the permittee’s premises where the source is located or emissions related activity is conducted and to:

(A) Have access to and copy, during normal business hours, any records that are kept purs uant to the conditions of the permit;

(B) Inspect any facilities, equipm ent (including monitoring and air pollution control equipment), practices, or operations regulated or required under the permit;

(C) Sample or monitor, substanc es or parameters to determine compliance with the conditions of the permit or applicable requirements; and

(D) Document alleged violations using devices such as cameras or video equipment.EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-10 (9) A responsible official of the source shall certify that, based on information and belief formed after a reasonable inquiry, the statements made in any document required to be submitted by any condition of the permit are true, accurate, and complete;

(10) The permit must contain:

(A) All applicable requirements, emission limits, and standards, provided, however, that applicable requirements that are not required by the Act or implementing federal regulations, and that are not in the Nevada SIP, may be included in the permit but shall be spec ifically designated as being not federally enforceable and not enforceable by a citizen'ssuit pursuant to the Act, and shall be designated as “county only requirements.” Terms and conditions so designatedare not subject to the requirements that apply to permit review by EPA and affected states;

(B) Monitoring, recordkeeping, and reporting requirements sufficient to meet the requirem ents of 40 CFR Part 64 or paragraph (d) of Section 12.5.2.6, as deemed necessary by the Control Officer;

(C)

(D)(C) Such other conditions as necessary to demonstratecompliance with the requirements in Section 12.2 or Section 12.3 for construction, subject to those sections.

(E)(D) A condition that states that the approval of an authority to con s truct or authority to oper ate shall not affect the responsibility of the permittee to comply with the applicable requirements of the Nevada St ate Implementation Plan or any other applicable requirements.

(11) The permittee shall maintain documentation of the records required by paragraph (a) of Sect ion 12.2.1.6 or paragraph (a) of Section 12.3.1.6, if applicable.

(12) The permittee shall report start of construction, construction interruptions exceeding nine (9) months, and completion of construction. The report shall be given to the Control Officer not later than fifteen (15) working days after occurrence of the event;

(13) The permittee shall provide wri tten notification of the actual date of commencing operation, receiv ed by the Control Officer, within fifteen (15) calendar days after such date;EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-11 (14) The permittee shall provide separate written notification for commencing operation for each uni t of phased construction, which may involve a series of units commencing operation at different times;

(15) A source that is a new Part 70 source or a major modification to an existing Part 70 source sha ll, within sixty (60) days after achieving the maximum rate of production of the new source or modification, but not later than one hundred eighty (180) days after commencing operation, conduct performance tests and furnish the Control Officer a writ ten report of the results of the tests. The Control Officer may re quire such testing to occur sooner than the 180 day limit if there are adequate grounds todo so. The performance tests required by the Authority to Construct Permit shall be conducted in accordance with the applicable test method and Section 12.8; and

(16) The permittee shall post the pe rmit in a location which is clearly visible and accessible to the fac ility’s employees and representatives of the department.

(17) The permittee shall pay all f ees assessed pursuant to Section 18.
12.4.3.2 Application Submission and Processing Requirements for Part 70 Sources or Modifications Not Subject to Section 12.2, Section 12.3, or Section 12.4.3.3

(a) In order to obtain an Authority to Construct Permit, the owner or operator of a proposed new Part 70 source that is not subject to Section 12.2 or Section 12.3, or the owner or operator of an existing Part 70 source proposing a modification that increases the source’s potential to emit by an amount equal to or greater than the minor NSR significant level in paragraph (b ) of Section 12.4.2.1, but that is not a major modification under Section 12.2 or Se ction 12.3, shall submit an application on a form prescr ibed by the Control Officer.

(1) The application shall contain the information specified in paragraph (a) of Section 12.4.3.1 and a “Control Technology Review” that meets the requirements of Section 12.2.9, except that Reasonably Available Control Technology (RACT) shall be the technology standard instead of Best Available Control Technology. The RACT Technology Review shall be submitted for any pollutant for which the source’s potential to emit increases by an amount equal to or greater than th e minor NSR significant level, but less than the major source or major modification thresholds. The applicant shall also include a demonstration that the new Part 70 source or modification does not cause an exceedanceEXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-12 of the ambient ai r quality standards in Section 11 as defined in Section 0 or an exceedance of the ambient air increments specified in Section 12.2.3.

(2) The determination of completeness and the procedures for processing the application shall be those in paragraph (d) of Section 12.4.3.1.

(3) The public participat ion procedures specifie d in Section 12.1.5.3 shall apply to a permit revision processed under Section 12.4.3.2(a).

(4) The contents of the Authority to Construct Permit issued pursuant to Section 12.4.3.2(a) shall be those in Section 12.4.3.1(e).

(b) In order to obtain an Authority to Construct Permit, the owner or operator of an existing Pa rt 70 source that is proposing a modification that increases the source’s potential to emit by an amount less than the minor NSR significance level in paragraph (b) of Section 12.4.2.1 shall comply with the minor revision process listed in Section 12.5.2.14, including the applicati on procedures listed in paragraph (a)(3) of Section 12.5.2.14.

12.4.3.3 Application Subm ission and Processing Requirements for Construction or Reconstruction of a Part 70 Source Subject to a Standard under Sections 112(d), (f), or (h) of the Act (a MACT source)

In addition to any other applicable applic ation requirements in Section 12.4, if a new Part 70 source, or the reconstr uction of an existi ng Part 70 source that creates a “new affected source” or “reconstructed affected source” that is a major source under 40 CFR Part 63, the owner or operator shall comply with the application r equirements under 40 CFR 63. 5 and paragraph (a) of Section 12.4.3.1. The Authority to C onstruct Permit for such source shall comply with the requirements in 40 CFR 63.5(e).

12.4.3.4 Authority to C onstruct Permit Revisions

(a) An Authority to Construct Permit shall only be revised administratively or as a signific ant permit revision.

(1) An administrative permit revision is a permit revision that:

(A) Corrects typographical errors;

(B) Identifies a change in the nam e, address, or phone number of any person identified in the permit, or provides a similar minor administrative change;EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-13 (C) Requires more frequent moni toring or reporting by the permittee;

(D) Allows for a change in ownersh ip or operational control of a source where the Control Offi cer determines that no other change in the permit is necessary, provided that a written agreement containing a spec ific date for transfer of permit responsibility, cover age, and liability between thecurrent and new permittee has been submitted to the Control Officer and the permit trans fer procedures specified in Section 12.12 are complied with; or

(E) Incorporates any other ty pe of change which the Administrator has determined to be si milar to those in paragraphs (a)(1)(A) through (a)(1)(D) of Section 12.4.3.4.

(2) An administrative permit revisi on may be made by the Control Officer consistent with the following:

(A) The Control Officer shall take no more than thirty (30) days from receipt of a request fo r an administrative permit revision to take final action on such request, and may incorporate the revision without prov iding notice to the public or affected states provided that the revised permit designates any such permit revisions as having been made pursuant to Section 12.4.3.4.

(B) The Control Officer shall pr ovide a copy of the revised permit to the Administrator.

(C) The source may implement the changes addressed in the request for an administrative revision immediately upon submittal of the request. Howeve r, if the Control Officer determines that the change does not qualify as an administrative revision, the source may be subject to enforcement proceedings for violation of any existing permit terms and conditions.

(3) A significant permit revision to an Authority to Construct Permit is any revision to the permit that is not an administrative permit revision.

(A) A significant permit revision shall be subject to the same application, determination of completeness, processing procedures, public participati on, notification, and timetables as the original Authority to Construct Permit, except that the scope of the procedures shall be limited to the revision and issues relevant to that revision and the proce-EXHIBIT 7

Adopted 05-18-10 CC Air Quality Regulations 12.4-14 dures specified in paragraphs (c) and (d) of Section 12.5.2.18 do not apply.

(b) From and after the date of comm encing operation, an Authority to Construct Permit shall only be revis ed pursuant to the procedures for revising a Part 70 Operating Permi t in Sections 12.5.2.13 and 12.5. 4.2. 14.

12.4.3.5 Administrative Pe rmit Revisions for Title IV Acid Rain Sources

Administrative permit revi sions to permit conditions governed by the Federal Clean Air Act Title IV Acid Rain Progr am shall comply with 40 CFR Part 72, as incorporated by reference in Section 21.

History: Adopted May 18, 2010