Are processes subject to delegated state OSHA programs classified as program level 3?

If my state administers the OSHA program under a delegation from the federal OSHA, does that mean that my processes that are subject to OSHA PSM under the state rules are in Program 3?

Yes, as long as the process does not qualify for Program 1. Any process subject to PSM, under federal or state rules, is considered to be in Program 3 unless it qualifies for Program 1.