Back to the OP, I am curious how NV came to this decision. The Nevada Administrative Code (NAC 503.142) states that "Only black powder or a black powder substitute such as Pyrodex or Triple 7 may be used as a propellant."
It says nothing about having to be carbon based (I thought PP and T7 were sugar based?). My guess is that similarly to New Mexico, someone made a decision without really understanding the requirements. At the very least, I would hope that the makers of BH209 would actively challenge this decision.