On September 3, 2026, the Nevada Division of Environmental Protection (NDEP) Bureau of Air Quality Planning (BAQP) held a stakeholder meeting on its draft Air Regulatory Enforcement Practice, which would replace the penalty matrix NDEP has used since 2008 to calculate recommended penalties for air quality violations. NDEP stated that the update is intended to improve transparency and consistency for the regulated community, the U.S. Environmental Protection Agency (EPA), and the public. The meeting walked through the draft Practice and compared penalties under the current matrix with the proposed approach, and a recording was posted to the Division’s YouTube channel.
The Practice would apply to every source holding an NDEP air permit. It does not single out any industry, but it changes the cost of decisions a facility makes after a deviation: whether to self-report, how thoroughly to document the root cause, and how quickly to take corrective action. A facility’s compliance history also carries direct financial weight under the draft, because a single prior violation of the same type adds 50 percent to the next penalty.
Public comments:
Why NDEP Is Changing the Penalty Process
NDEP identified four problems with the current matrix: 1) it has not been revised since 2008, 2) it does not cover all of the violation types staff now see in the field, 3) its simplicity has led to inconsistent scoring of deviation factors, and 4) it is difficult for facilities and staff to locate. NDEP intends the Practice to be a living document that is revised in pieces as new regulations are adopted, with all versions posted to the Division’s website.
How the Recommended Penalty Will Be Calculated
The draft replaces the flat matrix and worksheet with a defined gravity formula:
Gravity Component = BP × BM × (1 + AF − MF + CH)
where BP is the base penalty, BM is the base multiplier (number of events, duration, or exceedance ratio), AF and MF are aggravating and mitigating factors, and CH is compliance history, each expressed as a decimal. The Division then applies any maximum cap for the violation type and permit class. The framework includes a step for the economic benefit of noncompliance, but the draft states that economic benefit is not currently incorporated. The statutory maximum of $10,000 per violation per day still applies and can override the formula.
Base Penalties and Violation Types
Base penalties are now listed by violation type and source class (Class I, SM-80, Mercury, Class II, and all other sources). Most increased, though some decreased. If noncompliance pushes a facility’s emissions into a higher permit class, the penalty is set at the higher class. Section 9 of the draft lists 16 violation types, including several that are new or now stand alone:
- Fugitive dust and failed opacity (EPA Method 9), each with its own base penalty and cap
- Failure to provide adequate notification, expanded into five sub-types
- Falsification or manipulation of a source test
- Continuous monitoring systems, consolidating three line items in the current matrix (IOCD, quarterly and semi-annual audits, and RATA)
- Failure to comply with an order or schedule of compliance
- A general violation category for anything not otherwise listed
- A new Section 10 addresses nonmonetary penalties for failure to pay fees.
Aggravating and Mitigating Factors
Aggravating and mitigating factors existed under the current process but were undefined and rarely used. The draft assigns each a fixed value:
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Mitigating factors fall into two groups, each capped at a 25 percent reduction, with a combined maximum of 50 percent:
- Effort to comply: reasonable actions to prevent the event (0.1), prompt actions to limit its impact or duration (0.1), response before Division intervention (0.1), and identifying the root cause and preventing recurrence (0.2)
- Self-reporting: complete and timely reports with corrective actions and a detailed root cause analysis, submitted without Division prompting (0.25), or contacting the Division for assistance before the violation is discovered (0.25). NDEP may apply this reduction when at least 90 percent of reportable issues were properly reported.
Compliance History and Maximum Caps
Only finalized violations from the previous 60 months count toward compliance history. Warnings count; dismissals do not. Each prior violation of a different type adds 0.05. Prior violations of the same type add 0.5 for one, 1.0 for two, 1.5 for three, and 3.0 for four or more. For permit classes subject to minor violations, three minor violations of the same type count as one major violation.
The draft also introduces maximum caps for the first time, set by violation type and permit class. For example, the Class I cap for operating without a permit starts at $240,000. Each repeat violation of the same type within 60 months raises the cap by 50 percent of the initial amount, and the cap is removed at the fourth violation of the same type. Some categories, such as failed source tests and missing controls, are capped per pollutant or per system, and general violations are uncapped.
Warnings, Settlements, and Supplemental Environmental Projects
- Warnings: NDEP may issue a warning outside the typical enforcement route. A warning becomes final 10 days after receipt if not appealed and counts toward compliance history.
- Settlements: A settled penalty may still be higher or lower than the amount calculated under the Practice.
- Supplemental Environmental Projects (SEPs): SEPs are available for recommended penalties of $15,000 or more, offered after the 10-day appeal period on a Notice of Alleged Violation (NOAV), and generally valued at 125 percent of the recommended penalty. An agreed SEP is presented to the State Environmental Commission (SEC) as an alternative to a monetary penalty.
Example: Current Matrix vs. Proposed Practice
NDEP presented an example of an SM-80 source with operating parameter exceedances on two systems over 12 months (300 daily, 40 monthly, and 3 annual), no excess emission reports filed, and three prior violations within 48 months (one of the same type).
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The recommended penalty drops by about two-thirds, but the cap is not the main driver. Lower base penalties for this violation type and a smaller adjustment multiplier account for roughly four-fifths of the reduction; the cap removes the remaining $76,125. Results will vary, and penalties may increase for violation types with higher base penalties or where aggravating factors and repeat violations stack.
Next Steps
NDEP stated it would consider stakeholder comments and gave the SEC a status update on the penalty revisions at its September 16, 2026 meeting. The Practice takes effect 30 days after it is signed by the BAQP Chief, will supersede all previous enforcement guidance, and will apply to any alleged violation not yet settled as of the effective date.
Trinity recommends that Nevada permit holders review their deviation reporting, root cause documentation, and corrective action procedures now, since these directly affect penalty amounts under the new Practice. For assistance, please contact the Trinity Nevada office at 775.242.3200.
