cOSTq1. UNITED STATES ENVIRONMENTAL PROTECTION AGENCYIREGIONIX14c’o

75 Hawthorne Street San Francisco,

CA 94105-3901November8,2012 Colleen Cripps, Ph.D. Administrator Nevada Division

of Environmental Protection 901 South Stewart Street Carson City,N vada 89701 Dear D/s I am pleased

to enclose

a signed copy of the updated delegation agreement between
the Nevada Division of Environmental Protection (NDEP) and the U.S. Environmental Protection Agency which authorizes NDEP

to implement

the Prevention

of Significant Deterioration (PSD) provisions

of 40 CFR 52.21,

as in effect
on July 20, 2011. The agreement

is effective immediately. Please call me or have your staff contact Gerardo Rios

at (415) 972-3974

or rios.gerardo@epa.gov

if you have any questions.

Sincerely eborah Jordan Director,
Air Division Enclosure cc: Larry Kennedy, Chief, Bureau

of Air Pollution Control, NDEP Rob Bamford, Chief, Bureau

of Air Quality Planning, NDEPPrintedonRecycledPaperAgreement

for Delegation

of the Federal Prevention

of Significant Deterioration

(P SD) Program by the United States Environmental Protection Agency, Region

9 to the Nevada Division

of Environmental Protection This agreement

sets forth the terms and conditions according

to which the Nevada Division

of Environmental Protection (NDEP) agrees

to implement

and enforce
the federal PSD regulations found

in 40 CFR 52.21 (effective July 20, 2011). See 76 FR 43490, July 20, 2011. L Introduction The NDEP has adopted

by reference

the federal PSD regulations found

in 40 CFR 52.21,

as in effect
on July 20, 2011. See subsection

4 of section

4 of LCB File No. R038-12: NAC 445B.221(4). These provisions shall hereafter

be referred

to as the “State PSD regulations.” II. Legal Authority A. Pursuant

to 40 CFR 52.2 1(u), the U. S. Environmental Protection Agency (EPA) may delegate

to
a State full or partial responsibility

for conducting
new source review pursuant

to the federal PSD regulations found

in 40 CFR 52.21. B. As discussed above, the NDEP has adopted

by reference

the federal PSD regulations found in 40 CFR 52.21,

as in effect
on July 20, 2011. See subsection

4 of section

4 of LCB File No. R038-.12: NAC 445B.221(4). C. The NDEP and EPA agree that requirements

in PSD permits issued under the authority

of NAC 445B.221(4)

are federally enforceable requirements. III. Scope
of Delegation A. Pursuant

to 40 CFR 52.2 1(u), EPA hereby delegates

to the NDEP full responsibility

for implementing

and enforcing

the federal PSD regulations

for all sources located

in the State of Nevada under NDEP jurisdiction, subject

to the terms and conditions

of this Delegation Agreement. B. The NDEP’s delegation

to implement

and enforce
the federal PSD regulations under this Delegation Agreement
does not extend

to sources

or activities located

in Indian Country,

as defined

in 18 U.S.C.1 151. Consistent with previous federal program approvals

or delegations,
EPA will continue

to implement

the federal PSD program

in Indian Country

in Nevada, because NDEP did not adequately demonstrate

its authority over sources and activities located within the exterior boundaries

of Indian reservations

and in other areas of Indian Country. C. The EPA Administrator

has delegated

to the Director

of Region

9’s Air Division,

the authority

to delegate
the federal PSD regulations

to any State
or local agency. The State
or local agency that receives delegation from EPA Region

9 does not have the authority under the federal Clean Air Act to further delegate
the federal PSD regulations. IV. Requirements

1

# A. The responsibility

for implementing

the federal PSD program

for all regulated sources

as provided

by this Delegation Agreement
rests with the Chiefs
of the NDEP’s Bureaus

of Air Pollution Control and Air Quality Planning. EPA

is relying

on the technical
and programmatic expertise

of the Bureaus

of Air Pollution Control and Air Quality Planning in the implementation

of this Delegation Agreement

on the NDEP’s behalf. All applicability determinations
under this Delegation Agreement

will be made by the Chief of the Bureau

of Air Pollution Control,
the Chief of the Bureau

of Air Quality Planning

or
a higher level manager within the NDEP.

In no event will an applicability determination

be made

at a level lower than Bureau Chief. B. The NDEP will ensure that there are adequate resources
and trained personnel within the Bureaus

of Air Pollution Control and Air Quality Planning

to implement

an effective PSD permit program.

As requested, EPA will provide technical assistance related

to the federal PSD requirements, including without limitation, PSD applicability determinations,

Best Available Control Technology (BACT) determinations,

air quality monitoring network design, and modeling procedures. C. Where the rules
or policies

of the NDEP
are more stringent than the federal PSD program,

the NDEP may elect
to include such requirements

in the PSD permit along with the EPA requirements. D.

If both

a state or local regulation
and

a federal regulation apply

to the same source, both must be complied with, regardless ofhether

one
is more stringent than the other, sulject

to the requirements

of section 116 of the Clean Air Act. E. The NDEP will follow

all PSD policy, guidance,
and determinations issued
by EPA for implementing

the federal PSD program

as provided

in this Delegation Agreement.
EPA will provide
the NDEP with copies
of EPA policies, guidance,
and determinations through
the Region

7 NSR database and/or hard copies where appropriate. Where
no current EPA policy

or guidance clearly covers

a specific situation,
the NDEP shall consult with the EPA, Region

9, Air Division, Permits Office,

on its proposed interpretation

of the EPA regulations. F. The NDEP will
at no time grant

a waiver

to the requirements

of 40 CFR 52.21
or to the requirements

of an issued PSD permit. G. The NDEP shall consult with the appropriate State and local agency primarily responsible

for managing land use as provided

in 40 CFR 52.21 (u)(2)(i) prior
to making any preliminary

or final determination under this Delegation Agreement. H. For federal PSD permits
the NDEP shall: 1. Within

5 working days of receipt

of a PSD permit application, notif,’ the U.S. Fish and Wildlife Service (FWS)
of the permit application,

and provide

a copy of the permit application

if requested. 2. Noti1,’ applicants

of the potential need for consultation between EPA and FWS
if the project may affect
an endangered species. 3. Refrain from issuing

a final PSD permit until EPA has notified
the NDEP that EPA 2hassatisfieditsobligations,ifany,undertheESAand/ortheMagnuson-StevensAct.V.PermitIssuance,Modification,andAppealsA.AllpermitsissuedbytheNDEPunderthisDelegationAgreementshallindicatethatanappealtotheEPAEnvironmentalAppealsBoard(EAB)isavailablepursuantto40CFRpart124.B.Theprovisionsin40CFR124.19shallapplytoallappealstotheEABonPSDpermitsissuedbytheNDEPunderthisDelegationAgreement.Forpurposesofimplementingthefederalpermitappealprovisionsunderthisdelegation,ifthereisapubliccommentrequestingachangeinapreliminarydeterminationorproposedpermitcondition,thefinalpermitissuedbytheNDEPisrequiredtostatethatforfederalPSDpurposesandinaccordancewith40CFR124.15and124.19:1.Theeffectivedateofthepermitis30daysafterserviceofnoticetotheapplicantandcommentersofthefinaldecisiontoissue,modify,orrevokeandreissuethepermit,unlessreviewisrequestedonthepermitunder40CFR124.19withinthe30dayperiod.2.IfanappealismadetotheEAB,theeffectivedateofthepermitissuspendeduntilsuchtimeastheappealisresolved.C.APSDpermit(oraportionofaPSDpermit)forachangetoafacilitythatisamajormodificationundertheStatePSDregulationsbutnotthefederalPSDregulationsshallnotbeappealabletotheEPAEAB.D.MajormodificationstoexistingPSDpermits,exceptforadministrativeamendments,shallbeprocessedinaccordancewithallofthesubstantiveandproceduralrequirementsapplicabletonewPSDpermits.E.FailurebytheNDEPtocomplywiththerequirementsof40CFRpart124relatedtoPSDpermitsandthisSectionV.oftheDelegationAgreementshallrenderthesubjectpermitinvalidforfederalPSDpurposes.VI.EnforcementA.Inallcases,EPAretainsauthoritypursuanttosections113and167oftheCleanAirActwithrespecttosourcesthataresubjecttothefederalPSDrequirements,includingfederalPSDpermitsissuedbytheNDEP.B.Indelegatedprograms,theroleoftheStateisthatofprimaryenforceror“frontline”agencyinprogramimplementation.However,EPAwillinitiateanenforcementaction,asappropriate,underthefollowingcircumstances:1.AttheState’srequest;2.IfaStateagencyactionisdeterminedtobeinadequate,ortheStateagencyfailstocarryoutactioninatimelyorappropriatemanner;and/or33.AspartofEPA’sroleestablishedinthecollaborativeplanningprocess,whichincludesthosesituationswherenational,regional,orsectorinitiativeswarrantanEPAlead.C.PSDenforcementactionsunderthisDelegationAgreementwillbeundertakenbyqualifiedinspectorsortrainedenforcementstaffinNDEP’soffices.VII.EPAAndNDEPCommunicationsA.TheNDEPshallsubmittoEPAcopiesofthefollowingdocuments,withinthetimeframesindicated,forsourcesoractivitiessubjecttothisDelegationAgreement:ActionSubmittaltoEPATimeframeReceiptofPSDpermitapplicationCopyofapplicationandWithintenworkingdaysaftercoverletterreceiptCompletenessdeterminationorCopyoflettertoWithintenworkingdaysafterletterofdeficienciesapplicantsignatureTransmittaltoFederalLandCopyofletterWithintenworkingdaysafterManager(FLM)ofPSDapplicationsignatureReceiptofcommentsfromFLMForwardcommentletterWithintenworkingdaysofreceiptPreliminarydetermination,Copyoftechnicalreview,WithinfiveworkingdaysafterproposedPSDpermit,publicproposedPSDpermit,completionofpreliminarynoticeandpublicnoticedeterminationPublicnoticeofhearing(seeCopyoftechnicalreview,Withinfiveworkingdaysafter52.21(u)(2)(ii))proposedPSDpermit,completionofpreliminaryandpublicnoticedeterminationReceiptofcommentsfrompublicCopyofpubliccommentWithintenworkingdaysoftheletter(s)closeofthepubliccommentperiodFinaldetermination,PSDCopyoffinalWithinfiveworkingdaysafterpermitandtransmittalletterdetermination,PSDfinalsignatureonPSDpermitpermitandtransmittalletterBACTdeterminationsubmittalElectronicsubmittalofWithin30workingdaysoffinaltoRACT/BACT!LAERrequiredinformationsignatureonPSDpermitClearinghouseB.TheNDEPandEPAshouldcommunicatesufficientlytoguaranteethateachisfullyinformedandcurrentregardinginterpretationoffederalPSDregulations(includinganyuniquequestionsaboutPSDapplicability).AnyrecordsorreportsrelatingtoPSDpermittingorcompliancewithPSDrequirementsthatareprovidedtoorotherwiseobtainedbytheNDEPandarenotidentifiedintheTableinSectionVII.A.aboveshouldbemadeavailabletoEPAuponrequest.C.TheNDEPwillensurethatallrelevantsourceinformation,notificationsandreportsareenteredintotheEPAAJRS/AFSnationaldatabasesysteminordertomeetitsrecordkeeping4and reporting requirements.

In addition

to the National Minimal Data Requirements (MDRs) (attached),

the NDEP shall enter the following information

or activities: 1. The Air Program Code for PSD; 2. The date the PSD permit

is issued

or modified; 3. The final effective date of the PSD permit
(or modified permit); 4. The date that the new source

or modification begins construction;

and 5. The date that the new source

or modification begins operation. D. Correspondence

from EPA
to the NDEP will be sent to: Chief, Bureau

of Air Pollution Control Nevada Division

of Environmental Protection 901 South Stewart Street, Suite 4001 Carson City, Nevada 89701 Correspondence

from the NDEP

to EPA will be sent to: Chief, Permits Office, Air Division (AIR-3) USEPA, Region

9 75 Hawthorne Street San Francisco,

CA 94105 VIII. Future EPA Regulation Revisions A. The NDEP’s delegation

to implement

and enforce
the federal PSD regulations
does not extend

to revisions

to 40 CFR 52.21 that occur,

or have occurred, after July 20, 2011. B.

A new request
for delegation
will be required
for any changes

to 40 CFR Part 52.21 promulgated
after July 20, 2011. Implementation

and enforcement

of new or revised requirements
after July 20, 2011 will remain the sole responsibility

of EPA until this Delegation Agreement

is revised. IX. Administrative A. This delegation agreement supersedes

the previously delegated authority contained

in the September

15, 2011 Delegation Agreement
with the NDEP from the Director

of Region

9’s Air Division. B.

If, after consultation
with the NDEP, EPA makes any of the following determinations,

this delegation
may be revoked

in whole

or in part. Any such revocation shall be effective

as of the date specified

in a Notice
of Revocation. 1. The NDEP’s legal authority, rules and regulations, and/or procedures

for implementing

or enforcing

the federal PSD requirements

as provided

in this Delegation Agreement

are inadequate; 2. The NDEP

is not adequately implementing

or enforcing

the federal PSD program;

or 53. The NDEP has not implemented

the requirements

or guidance with respect

to
a specific permit

in accordance
with the terms and conditions

of this delegation,

the requirements

of 40 CFR 52.21,
40 CFR 124, or the Clean Air Act. C.

In the event that NDEP

is unwilling

or unable

to implement

or enforce
the federal PSD regulations

as provided

in this Delegation Agreement
with respect

to
a source

or activity subject

to the federal PSD regulations,

the NDEP will immediately notify the Director

of the Air Division
and the Chief of the Air Division’s Permit Office. Failure

to notify the Director

of the Air Division
and the Chief of the Air Division’s Permits Office does not preclude EPA from exercising

its enforcement authority. D.

In the event that EPA
or the NDEP regulations

or policies change, this delegation shall either
be amended

to ensure the continued implementation

of EPA’s PSD regulations

or the delegation shall be revoked. X. Signatures On behalf
of the Environmental Protection Agency,

I grant full delegation

of the federal PSD program,

40 CFR 52.21,

to the NDEP pursuant

to the terms and conditions

of this delegation agreement

and the requirements

of the Clean Air Act. Deborah Jordan Director,
Air Division Environmental Protection Agency Region

9 On behalf
of the State of Nevada Division

of Environmental Protection

I accept full delegation

of the federal Prevention

of Significant Deterioration program,

40 CFR

5 1,.-pirsuant

to the terms and conditions

of this delegation agreement

and the requirements

o lcn Air Act. Date________________ ____________________________ //

Colleen Cripps, Ph.D. Administrator Nevada Division

of Environmental Protection 6