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Petition No. 2003-07

LCB File No. R-198-03

Date Received by Commission: October 28, 2003

Summary: Amendments will change permitting provisions of air controls

Current Status: Approved By SEC, February 26, 2004

Nevada Administrative Code: of NAC 445B

Codified by LCB: April 26,2004

Petitioner: NDEP BAPC - Michael Elges

Description of Petition: This Petition proposes changes to the permitting provisions of NAC 445B - Air Pollution Control. The amendments will add an opacity limit and reduce the time allowed for exceptions to visible emissions from steam generating units; remove the state visibility standard; make violations of the fugitive dust regulations a major violation after the first offense; and revise the procedures for determining when an application for a Class I/PSD operating permit is considered complete. The amendments will require public notification of certain minor revisions to Class I operating permits, as well as public notification of certain Class II operating permit applications and revisions to allow public comment pursuant to Clean Air Act Title I.

Accordingly, the amendments will increase fees for processing Class I and II operating permit revisions and renewals to cover the costs of implementing the public notification requirements. The amendments will also increase timelines for issuance of such permits and revisions, depending on the new public notification requirements. For Class II and Class III sources, the amendments will clarify how much -- in advance of the permit expiration date -- a renewal application must be submitted. The amendments will also remove ambiguity with respect to the Director's discretion in implementing the regulations dealing with incinerator burning and schedules for compliance. Finally, several clarifications, technical corrections and updates are proposed.

These amendments are necessary for the following reasons: Many of the amendments align the NAC with Nevada's Applicable State Implementation Plan (SIP) and will, thereby, allow USEPA to approve an updated SIP. Federal regulation requires public notice of permitting actions for minor sources of air pollutants and minor revisions to Class I operating permits. Amending the renewal timeline for Class II operating permits ensures consistency with revisions to NAC 445B.3457. The amendments also ensure that Class II and Class III renewals are submitted with sufficient time for processing before they expire. Reassigning fugitive dust into the major violations category will allow NDEP to achieve compliance with the regulation earlier in the process. Revising the process for determining the completeness of a permit application for a source subject to PSD requirements will prevent an automatic triggering of the PSD increment if the Director fails to act within 30 days after receipt of an application. The recent adoption of the national regional haze rule, the visibility standard is removed because it is no longer necessary.

While the proposed amendments will have no measurable economic effects on the public, the proposed changes will affect both major and minor stationary sources of air pollution. Since there will be additional costs to the agency for implementing the proposed public notification requirements, fees will increase by $500 if the public notice includes publication in statewide newspapers and mailing to interested parties and by $350 if the public notice can be sent electronically. The amendments being proposed will not restrict the formation, operation, or expansion of the regulated industry, nor do they overlap or duplicate any regulations of other state or government agencies. The amendments are also no more stringent than what is established by federal law.

Annotated History of the Petition: Petition 2003-07 received as permanent petition from NDEP-BAPC on 10/28/2002. The Petition was sent to LCB on October 30,2003. The SEC approved the petition on February 26, 2004 and LCB filed the Petition on April 26, 2004

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