Nevada Division ofEnvironmental Protection

901 South Stewart Street

Carson City,N vada 89701

DearD/s

I am pleased to enclose a signed copy ofthe 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, NDEP

Printed on Recycled Paper
d 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 ofsection 4 ofLCB 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 ofsection 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 ofNevada under NDEP jurisdiction, subject to the terms and conditions ofthis 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 ofIndian reservations and in other areas of Indian Country.

C. The EPA Administrator has delegated to the Director ofRegion 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

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level lower than Bureau Chief.

B. The NDEP will ensure that there are adequate resources and trained personnel within the

Bureaus ofAir Pollution Control and Air Quality Planning to implement an effective PSDpermit 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 ofthe NDEP are more stringent than the federal PSD

program, the NDEP may elect to include such requirements in the PSD permit along withthe EPA requirements.

D. Ifboth 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 ofsection 116 ofthe 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 ofthe

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 ofreceipt of a PSD permit application, notif,’ the U.S. Fish

and Wildlife Service (FWS) ofthe permit application, and provide a copy ofthepermit application ifrequested.

2. Noti1,’ applicants ofthe potential need for consultation between EPA and FWS ifthe

project may affect an endangered species.

3. Refrain from issuing a final PSD permit until EPA has notified the NDEP that EPA

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B. The provisions in 40 CFR 124.19 shall apply to all appeals to the EAB on PSD permits issued by

the NDEP under this Delegation Agreement. For purposes of implementing the federalpermit appeal provisions under this delegation, if there is a public comment requesting a

change in a preliminary determination or proposed permit condition, the final permit issued by

the NDEP is required to state that for federal PSD purposes and in accordance with 40 CFR

124.15 and 124.19:

1. The effective date ofthe permit is 30 days after service of notice to the applicant and

commenters ofthe final decision to issue, modify, or revoke and reissue the permit,unless review is requested on the permit under 40 CFR 124.19 within the 30 day

period.

2. If an appeal is made to the EAB, the effective date of the permit is suspended until

such time as the appeal is resolved.

C. A PSD permit (or a portion of a PSD permit) for a change to a facility that is a major

modification under the State PSD regulations but not the federal PSD regulations shall not be

appealable to the EPA EAB.

D. Major modifications to existing PSD permits, except for administrative amendments, shall be

processed in accordance with all ofthe substantive and procedural requirements applicable tonew PSD permits.

E. Failure by the NDEP to comply with the requirements of 40 CFR part 124 related to PSD

permits and this Section V. ofthe Delegation Agreement shall render the subject permit

invalid for federal PSD purposes.

VI. Enforcement

A. In all cases, EPA retains authority pursuant to sections 113 and 167 ofthe Clean Air Act

with respect to sources that are subject to the federal PSD requirements, including federal PSDpermits issued by the NDEP.

B. In delegated programs, the role ofthe State is that of primary enforcer or “front line” agency

in program implementation. However, EPA will initiate an enforcement action, as appropriate,

under the following circumstances:

1. At the State’s request;

2. If a State agency action is determined to be inadequate, or the State agency fails to

carry out action in a timely or appropriate manner; and/or

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VII. EPA And NDEP Communications

A. The NDEP shall submit to EPA copies ofthe following documents, within the time frames

indicated, for sources or activities subject to this Delegation Agreement:

Action Submittal to EPA Time frame

Receipt ofPSD permit application Copy of application and Within ten working days after

cover letter receipt

Completeness determination or Copy ofletter to Within ten working days afterletter of deficiencies applicant signature

Transmittal to Federal Land Copy ofletter Within ten working days after

Manager (FLM) ofPSD application signatureReceipt of comments from FLM Forward comment letter Within ten working days of

receipt

Preliminary determination, Copy oftechnical review, Within five working days after

proposed PSD permit, public proposed PSD permit, completion ofpreliminary

notice and public notice determination

Public notice ofhearing (see Copy oftechnical review, Within five working days after

52.2 1(u)(2)(ii)) proposed PSD permit, completion ofpreliminary

and public notice determination

Receipt of comments from public Copy ofpublic comment Within ten working days ofthe

letter(s) close ofthe public comment

period

Final determination, PSD Copy offinal Within five working days after

permit and transmittal letter determination, PSD final signature on PSD permit

permit and transmittal

letter

BACT determination submittal Electronic submittal of Within 30 working days of final

to RACT/BACT! LAER required information signature on PSD permit

Clearinghouse

B. The NDEP and EPA should communicate sufficiently to guarantee that each is fully informed and

current regarding interpretation offederal PSD regulations (including any unique questionsabout PSD applicability). Any records or reports relating to PSD permitting or compliancewith PSD requirements that are provided to or otherwise obtained by the NDEP and are notidentified in the Table in Section VII.A. above should be made available to EPA upon

request.

C. The NDEP will ensure that all relevant source information, notifications and reports are

entered into the EPA AJRS/AFS national database system in order to meet its record keeping

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D. Correspondence from EPA to the NDEP will be sent to:

Chief, Bureau ofAir Pollution Control

Nevada Division ofEnvironmental 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 ofRegion 9’s

Air Division.

B. If, after consultation with the NDEP, EPA makes any ofthe 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 ofRevocation.

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

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Air Division and the Chief ofthe 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 ofthe Environmental Protection Agency, I grant full delegation ofthe federal PSD

program, 40 CFR 52.21, to the NDEP pursuant to the terms and conditions ofthis delegation

agreement and the requirements ofthe Clean Air Act.

Deborah Jordan

Director, Air Division

Environmental Protection Agency

Region 9

On behalf ofthe State ofNevada 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 ofthis delegation agreement and the requirements o lcn Air Act.

Date

//

Colleen Cripps, Ph.D.

Administrator

Nevada Division of Environmental Protection

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