1. Beyond Federal Standards Nevada Mercury Air Emission Control Program Leo M. Drozdoff, P.E. Administrator Nevada Division of Environmental Protection December 15, 2005

2. Building on the success of the voluntary program The Nevada Mercury Air Emission Control Program (NMCP) is the first regulatory program of its kind to control mercury emissions from precious metal mining operations

3. Overview Voluntary program background Reductions achieved Re-evaluation New goals Regulatory program Vision for the future

4. Genesis of the voluntary mercury reduction program 1998: Metal mining industry required to submit mercury emissions with Toxic Release Inventory (TRI) 2000: Released 1998 TRI numbers show five mining operations account for more than 90% of emissions 2001: EPA site tours to analyze sources and controls 2002: NDEP and EPA develop Voluntary Mercury Reduction Program with four largest mining companies

5. Goals for Voluntary Mercury Reduction Program Achieve significant, permanent and rapid reductions in mercury air emissions from precious metal mining operations Achieve reductions through approaches that are most suitable for each individual mining facility Encourage flexibility in technology innovation and greater reductions per transaction cost

6. Program resulted in rapid and significant reductions From a 2001 baseline of 21,098 pounds, reduced emissions by: 50% in 2002 74% in 2003 82% in 2004

7. 2005 timeline for re- evaluating voluntary program Envisioned extension of the program beyond 2005 Throughout 2005 initiated meetings with stakeholders including EPA, state regulators, the environmental community and industry representatives to identify opportunities for enhancing Nevada’s mercury program Incorporated proposals and concerns from stakeholders into goals for a new program

8. Quantum leap from voluntary program Significant differences in new program: Regulatory and permitting process Enhanced monitoring, testing, recordkeeping and reporting Expanded coverage to all precious metal mining operations Improved and additional controls Unit level applicability instead of by facility

9. Through the new regulatory program NDEP focused on… Controlling Hg emissions from thermal processes Regulatory and permitting process designed to ensure that Maximum Achievable Control Technology (MACT) level controls are permitted and operated Control mercury air emissions to the maximum extent possible

10. Nevada Mercury Control Program approach Most stringent levels of mercury control feasible through a case-by-case NV MACT Enhanced ability for NDEP to implement the program through regulations and permits Early reductions encouraged through Early Reduction Credit Provide for public participation throughout the process

11. Nevada Mercury Reduction Program overview Three Tiered Program Tier 1 - Current voluntary program units Tier 2 - All other units at precious metal mining facilities Tier 3 - De minimus or no mercury emissions

12. Why we focused on mercury control Data availability – timeliness, complexity, capability and resources Avoid duplication of work done by other groups and agencies Fastest way to achieve measurable reductions This is the next phase of Nevada’s mercury program, not the end of the story

13. Nevada Mercury Control Program next steps Public workshops anticipated in December 2005 to January 2006 Depending on timing and outcome of public workshops, draft regulations submitted to State Environmental Commission in January or April Anticipate adopting program in 2006

14. Nevada Mercury Control Program vision for the future Enforceable mercury controls at all affected precious metal mining operations in Nevada Best achievable control technology Full implementation of Nevada MACT by 2013