Facility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 1 PERMIT Under the Environmental Conservation Law (ECL)

IDENTIFICATION INFORMATION
Permit Type: Air State Facility Permit ID: 3-3356-00136/00001 Effective Date: Expiration Date:

Permit Issued To:COMPETITIVE POWER VENTURES INC 50 BRAINTREE HILL OFFICE PARK SUITE 300 BRAINTREE, MA 02184

Contact: STEVE REMILLARD CPV VALLEY LLC 35 BRAINTREE HILL OFFICE PARK STE 400 BRAINTREE, MA 02184 (781) 817-8970
Facility: CPV VALLEY ENERGY CENTER US RTE 6 , RTE 17 AND INTERSTATE 84 MIDDLETOWN, NY
Description: 

### pre-construction permit

By acceptance of this permit, the permittee agrees that the permit is contingent upon strict compliance with the ECL, all applicable regulations, the General Conditions specified and any Special Conditions included as part of this permit.

Permit Administrator: CHRISTOPHER M HOGAN 625 BROADWAY ALBANY, NY 12233
Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 2 Notification of Other State Permittee Obligations
Item A: Permittee Accepts Legal Responsibility and Agrees to Indemnification
The permittee expressly agrees to indemnify and hold harmless the Department of Environmental Conservation of the State of New York, its representatives, employees and agents ("DEC") for all claims, suits, actions, and damages, to the extent attributable to the permittee's acts or omissions in connection with the compliance permittee's undertaking of activities in connection with, or operation and maintenance of, the facility or facilities authorized by the permit whether in compliance or not in any compliance with the terms and conditions of the permit. This indemnification does not extend to any claims, suits, actions, or damages to the extent attributable to DEC's own negligent or intentional acts or omissions, or to any claims, suits, or actions naming the DEC and arising under article 78 of the New York Civil Practice Laws and Rules or any citizen suit or civil rights provision under federal or state laws.

Item B: Permittee's Contractors to Comply with Permit
The permittee is responsible for informing its independent contractors, employees, agents and assigns of their responsibility to comply with this permit, including all special conditions while acting as the permittee's agent with respect to the permitted activities, and such persons shall be subject to the same sanctions for violations of the Environmental Conservation Law as those prescribed for the permittee.

Item C: Permittee Responsible for Obtaining Other Required Permits
The permittee is responsible for obtaining any other permits, approvals, lands, easements and rights-of-way that may be required to carry out the activities that are authorized by this permit.

Item D: No Right to Trespass or Interfere with Riparian Rights
This permit does not convey to the permittee any right to trespass upon the lands or interfere with the riparian rights of others in order to perform the permitted work nor does it authorize the impairment of any rights, title, or interest in real or personal property held or vested in a person not a party to the permit.Facility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 3 LIST OF CONDITIONS

DEC GENERAL CONDITIONS General Provisions Facility Inspection by the Department Facility Inspection by the Department Facility Inspection by the Department Relationship of this Permit to Other Department Orders and Determinations Relationship of this Permit to Other Department Orders and Determinations Relationship of this Permit to Other Department Orders and Determinations Applications for permit renewals, modifications and transfers Applications for permit renewals, modifications and transfers Applications for permit renewals, modifications and transfers Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Facility Level Submission of application for permit modification or renewal-REGION 3 HEADQUARTERSFacility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 4 DEC GENERAL CONDITIONS **** General Provisions   GENERAL CONDITIONS - Apply to ALL Authorized Permits.

Condition 1: Facility Inspection by the Department Applicable State Requirement: ECL 19-0305

Item 1.1: The permitted site or facility, including relevant records, is subject to inspection at reasonable hours and intervals by an authorized representative of the Department of Environmental Conservation (the Department) to determine whether the permittee is complying with this permit and the ECL. Such representative may order the work suspended pursuant to ECL 71-0301 and SAPA 401(3).

Item 1.2: The permittee shall provide a person to accompany the Department's representative during an inspection to the permit area when requested by the Department.

Item 1.3: A copy of this permit, including all referenced maps, drawings and special conditions, must be available for inspection by the Department at all times at the project site or facility. Failure to produce a copy of the permit upon request by a Department representative is a violation of this permit.
Condition 1: Facility Inspection by the Department Applicable State Requirement: ECL 19-0305

Item 1.1: The permitted site or facility, including relevant records, is subject to inspection at reasonable hours and intervals by an authorized representative of the Department of Environmental Conservation (the Department) to determine whether the permittee is complying with this permit and the ECL. Such representative may order the work suspended pursuant to ECL 71-0301 and SAPA 401(3).

Item 1.2: The permittee shall provide a person to accompany the Department's representative during an inspection to the permit area when requested by the Department.

Item 1.3: A copy of this permit, including all referenced maps, drawings and special conditions, must be available for inspection by the Department at all times at the project site or facility. Failure to produce a copy of the permit upon request by a Department representative is a violation of this permit.
Condition 1: Facility Inspection by the Department Applicable State Requirement: ECL 19-0305

Item 1.1: The permitted site or facility, including relevant records, is subject to inspection at reasonable hours and intervals by an authorized representative of the Department of Environmental Conservation (the Department) to determine whether the permittee is complying with this permit and the ECL. Such representative may order the work suspended pursuant to ECL 71-0301 andFacility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 5 SAPA 401(3).

Item 1.2: The permittee shall provide a person to accompany the Department's representative during an inspection to the permit area when requested by the Department.

Item 1.3: A copy of this permit, including all referenced maps, drawings and special conditions, must be available for inspection by the Department at all times at the project site or facility. Failure to produce a copy of the permit upon request by a Department representative is a violation of this permit.
Condition 2: Relationship of this Permit to Other Department Orders and Determinations Applicable State Requirement: ECL 3-0301 (2) (m)

Item 2.1: Unless expressly provided for by the Department, issuance of this permit does not modify, supersede or rescind any order or determination previously issued by the Department or any of the terms, conditions or requirements contained in such order or determination.
Condition 2: Relationship of this Permit to Other Department Orders and Determinations Applicable State Requirement: ECL 3-0301 (2) (m)

Item 2.1: Unless expressly provided for by the Department, issuance of this permit does not modify, supersede or rescind any order or determination previously issued by the Department or any of the terms, conditions or requirements contained in such order or determination.
Condition 2: Relationship of this Permit to Other Department Orders and Determinations Applicable State Requirement: ECL 3-0301 (2) (m)

Item 2.1: Unless expressly provided for by the Department, issuance of this permit does not modify, supersede or rescind any order or determination previously issued by the Department or any of the terms, conditions or requirements contained in such order or determination.
Condition 3: Applications for permit renewals, modifications and transfers Applicable State Requirement: 6 NYCRR 621.11

Item 3.1: The permittee must submit a separate written application to the Department for renewal, modification or transfer of this permit. Such application must include any forms or supplemental information the Department requires. Any renewal, modification or transfer granted by the Department must be in writing.

Item 3.2: The permittee must submit a renewal application at least 180 days before expiration of permits for Title V Facility Permits, or at least 30 days before expiration of permits for State Facility Permits.

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should beFacility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 6 submitted prior to actual transfer of ownership.
Condition 3: Applications for permit renewals, modifications and transfers Applicable State Requirement: 6 NYCRR 621.11

Item 3.1: The permittee must submit a separate written application to the Department for renewal, modification or transfer of this permit. Such application must include any forms or supplemental information the Department requires. Any renewal, modification or transfer granted by the Department must be in writing.

Item 3.2: The permittee must submit a renewal application at least 180 days before expiration of permits for Title V Facility Permits, or at least 30 days before expiration of permits for State Facility Permits.

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should be submitted prior to actual transfer of ownership.
Condition 3: Applications for permit renewals, modifications and transfers Applicable State Requirement: 6 NYCRR 621.11

Item 3.1: The permittee must submit a separate written application to the Department for renewal, modification or transfer of this permit. Such application must include any forms or supplemental information the Department requires. Any renewal, modification or transfer granted by the Department must be in writing.

Item 3.2: The permittee must submit a renewal application at least 180 days before expiration of permits for Title V Facility Permits, or at least 30 days before expiration of permits for State Facility Permits.

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should be submitted prior to actual transfer of ownership.
Condition 4: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 4.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:
a) materially false or inaccurate statements in the permit application or supporting papers; b) failure by the permittee to comply with any terms or conditions of the permit; c) exceeding the scope of the project as described in the permit application; d) newly discovered material information or a material change in environmental conditions, relevant technology or applicable law or regulations since the issuance of the existing permit;Facility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 7 e) noncompliance with previously issued permit conditions, orders of the commissioner, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

Condition 4: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 4.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:
a) materially false or inaccurate statements in the permit application or supporting papers; b) failure by the permittee to comply with any terms or conditions of the permit; c) exceeding the scope of the project as described in the permit application; d) newly discovered material information or a material change in environmental conditions, relevant technology or applicable law or regulations since the issuance of the existing permit; e) noncompliance with previously issued permit conditions, orders of the commissioner, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

Condition 4: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 4.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:
a) materially false or inaccurate statements in the permit application or supporting papers; b) failure by the permittee to comply with any terms or conditions of the permit; c) exceeding the scope of the project as described in the permit application; d) newly discovered material information or a material change in environmental conditions, relevant technology or applicable law or regulations since the issuance of the existing permit; e) noncompliance with previously issued permit conditions, orders of the commissioner, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

** ** Facility Level ****
Condition 5: Submission of application for permit modification or renewal-REGION 3 HEADQUARTERS Applicable State Requirement: 6 NYCRR 621.6 (a)

Item 5.1: Submission of applications for permit modification or renewal are to be submitted to: NYSDEC Regional Permit Administrator Region 3 HeadquartersFacility DEC ID: 3335600136

DEC Permit Conditions DRAFT Page 8 Division of Environmental Permits 21 South Putt Corners Road New Paltz, NY 12561-1696 (845) 256-3054Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 1 DRAFT Permit Under the Environmental Conservation Law (ECL)

ARTICLE 19: AIR POLLUTION CONTROL - AIR STATE FACILITY PERMIT

IDENTIFICATION INFORMATION

Permit Issued To:COMPETITIVE POWER VENTURES INC 50 BRAINTREE HILL OFFICE PARK SUITE 300 BRAINTREE, MA 02184

Facility: CPV VALLEY ENERGY CENTER US RTE 6 , RTE 17 AND INTERSTATE 84 MIDDLETOWN, NY
Authorized Activity By Standard Industrial Classification Code: 4911 - ELECTRIC SERVICES
Permit Effective Date: Permit Expiration Date:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 2 DRAFT LIST OF CONDITIONS

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1 6 NYCRR 200.7: Maintenance of Equipment 2 6 NYCRR 202-1.1: Required Emissions Tests 3 6 NYCRR 200.7: Compliance Demonstration 4 6 NYCRR 200.7: Compliance Demonstration 5 6 NYCRR 201-1.4 (a): Compliance Demonstration 6 6 NYCRR 201-6.3 (a) (2): T itle V Permit Requirement 7 6 NYCRR Subpart 201-7: Facility Permissible Emissions *8 6 NYCRR Subpart 201-7: Capping Monitoring Condition 9 6 NYCRR 211.1: Air pollution prohibited 10 6 NYCRR 231-5.3: Facility PTE 11 6 NYCRR 231-5.4: Compliance Demonstration 12 6 NYCRR 231-5.4: Compliance Demonstration 13 6 NYCRR 231-5.4: Compliance Demonstration 14 6 NYCRR 231-5.4: Compliance Demonstration 15 6 NYCRR 231-5.5: Emission offset 16 6 NYCRR 231-5.5: Emission offsets 17 6 NYCRR 231-5.5: offsets. 18 6 NYCRR 231-7.5: Facility potential to emit 19 6 NYCRR 231-7.6: Compliance Demonstration 20 6 NYCRR 231-7.6: Compliance Demonstration 21 6 NYCRR 231-7.6: Compliance Demonstration 22 6 NYCRR 231-7.6: Compliance Demonstration 23 6 NYCRR 231-7.6: Compliance Demonstration 24 6 NYCRR 231-7.6: Compliance Demonstration 25 6 NYCRR 231-7.6: Compliance Demonstration 26 6 NYCRR 231-7.6: Compliance Demonstration 27 6 NYCRR 231-7.6: Compliance Demonstration 28 6 NYCRR 231-7.6: Compliance Demonstration 29 6 NYCRR 231-7.6: Compliance Demonstration 30 6 NYCRR 231-7.6: Compliance Demonstration 31 6 NYCRR 243-1.6 (a): Permit Requirements 32 6 NYCRR 243-1.6 (b): Monitoring requirements 33 6 NYCRR 243-1.6 (c): NOx Ozone Season Emission Requirements 34 6 NYCRR 243-1.6 (d): Excess emission requirements 35 6 NYCRR 243-1.6 (e): Recordkeeping and reporting requirements 36 6 NYCRR 243-2.1: Authorization and responsibilities of CAIR designated representative 37 6 NYCRR 243-2.4: Certificate of representation 38 6 NYCRR 243-8.1: General requirements 39 6 NYCRR 243-8.1: Prohibitions 40 6 NYCRR 243-8.5 (d): Quarterly reports 41 6 NYCRR 243-8.5 (e): Compliance certification 42 6 NYCRR Subpart 244-1: CAIR NOx Annual Trading Program General Conditions 43 6 NYCRR Subpart 244-2: Designated CAIR Representative 44 6 NYCRR Subpart 244-8: Compliance DemonstrationPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 3 DRAFT 45 6 NYCRR Subpart 245-1: CAIR SO2 Trading Program General Provisions 46 6 NYCRR Subpart 245-2: Designated CAIR Representative 47 6 NYCRR Subpart 245-8: Compliance Demonstration 48 40CFR 60.4, NSPS Subpart A: EPA Region 2 address. 49 40CFR 60.7(a), NSPS Subpart A: Date of construction notification - If a COM is not used. 50 40CFR 60.7(b), NSPS Subpart A: Recordkeeping requirements. 51 40CFR 60.7(f), NSPS Subpart A: Facility files for subject sources. 52 40CFR 60.8(a), NSPS Subpart A: Performance testing timeline. 53 40CFR 60.8(b), NSPS Subpart A: Performance test methods. 54 40CFR 60.8(d), NSPS Subpart A: Prior notice. 55 40CFR 60.8(e), NSPS Subpart A: Performance testing facilities. 56 40CFR 60.8(f), NSPS Subpart A: Number of required tests. 57 40CFR 60, NSPS Subpart IIII: Applicability 58 40CFR 60.4335, NSPS Subpart KKKK: Compliance Demonstration 59 40CFR 60.4375(a), NSPS Subpart KKKK: Compliance Demonstration 60 40 CFR Part 72: Facility Subject to Title IV Acid Rain Regulations and Permitting Emission Unit Level 61 6 NYCRR 227-1.3 (a): Compliance Demonstration 62 6 NYCRR 227-1.3 (a): Compliance Demonstration

EU=U-00003 63 40CFR 60.43c(c), NSPS Subpart Dc: Compliance Demonstration 64 40CFR 60.48c(a), NSPS Subpart Dc: Compliance Demonstration
EU=U-00003,Proc=P3B 65 6 NYCRR 231-5.4: Compliance Demonstration 66 6 NYCRR 231-5.4: Compliance Demonstration 67 6 NYCRR 231-5.4: Compliance Demonstration 68 6 NYCRR 231-7.6: Compliance Demonstration 69 6 NYCRR 231-7.6: Compliance Demonstration 70 6 NYCRR 231-7.6: Compliance Demonstration 71 6 NYCRR 231-7.6: Compliance Demonstration
EU=U-00003,Proc=P3B,ES=AUX01 72 40CFR 60.48c(g)(2), NSPS Subpart Dc: Alternative recordkeeping
EU=U-00004,Proc=P04 73 6 NYCRR 231-5.4: Compliance Demonstration 74 6 NYCRR 231-5.4: Compliance Demonstration 75 6 NYCRR 231-7.6: Compliance Demonstration 76 6 NYCRR 231-7.6: Compliance Demonstration 77 6 NYCRR 231-7.6: Compliance Demonstration 78 6 NYCRR 231-7.6: Compliance Demonstration
EU=U-00005,Proc=P05 79 6 NYCRR 231-5.4: Compliance Demonstration 80 6 NYCRR 231-5.4: Compliance Demonstration 81 6 NYCRR 231-7.6: Compliance Demonstration 82 6 NYCRR 231-7.6: Compliance Demonstration 83 6 NYCRR 231-7.6: Compliance DemonstrationPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 4 DRAFT 84 6 NYCRR 231-7.6: Compliance Demonstration
EU=U-00006,Proc=P06 85 6 NYCRR 231-5.4: Compliance Demonstration 86 6 NYCRR 231-5.4: Compliance Demonstration 87 6 NYCRR 231-7.6: Compliance Demonstration 88 6 NYCRR 231-7.6: Compliance Demonstration 89 6 NYCRR 231-7.6: Compliance Demonstration 90 6 NYCRR 231-7.6: Compliance Demonstration

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 91 ECL 19-0301: Contaminant List 92 6 NYCRR 201-1.4: Unavoidable noncompliance and violations 93 6 NYCRR Subpart 201-5: Emission Unit Definition 94 6 NYCRR 211.2: Visible Emissions Limited 95 6 NYCRR 242-1.5: CO2 Budget Trading Program - Excess emission requirements 96 6 NYCRR 242-1.5: Compliance Demonstration 97 6 NYCRR 242-1.5: Compliance Demonstration Emission Unit Level 98 6 NYCRR Subpart 201-5: Emission Point Definition By Emission Unit 99 6 NYCRR Subpart 201-5: Process Definition By Emission Unit 100 6 NYCRR 251.3 (a): Compliance Demonstration
NOTE: * preceding the condition number indicates capping.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 5 DRAFT FEDERALLY ENFORCEABLE CONDITIONS **** Fac ility Level  

NOTIFICATION OF GENERAL PERMITTEE OBLIGATIONS This section contains terms and conditions which are federally enforceable. Permittees may also have other obligations under regulations of general applicability
Item A: Sealing - 6 NYCRR 200.5 The Commissioner may seal an air contamination source to prevent its operation if compliance with 6 NYCRR Chapter III is not met within the time provided by an order of the Commissioner issued in the case of the violation. Sealing means labeling or tagging a source to notify any person that operation of the source is prohibited, and also includes physical means of preventing the operation of an air contamination source without resulting in destruction of any equipment associated with such source, and includes, but is not limited to, bolting, chaining or wiring shut control panels, apertures or conduits associated with such source.
No person shall operate any air contamination source sealed by the Commissioner in accordance with this section unless a modification has been made which enables such source to comply with all requirements applicable to such modification.
Unless authorized by the Commissioner, no person shall remove or alter any seal affixed to any contamination source in accordance with this section.
Item B: Acceptable Ambient Air Quality - 6 NYCRR 200.6
Notwithstanding the provisions of 6 NYCRR Chapter III, Subchapter A, no person shall allow or permit any air contamination source to emit air contaminants in quantities which alone or in combination with emissions from other air contamination sources would contravene any applicable ambient air quality standard and/or cause air pollution. In such cases where contravention occurs or may occur, the Commissioner shall specify the degree and/or method of emission control required.
Item C: Maintenance of Equipment - 6 NYCRR 200.7
Any person who owns or operates an air contamination source which is equipped with an emission control device shall operate such device and keep it in a satisfactory state of maintenance and repair in accordance with ordinary and necessary practices, standards and procedures, inclusive of manufacturer's specifications,Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 6 DRAFT required to operate such device effectively.
Item D: Unpermitted Emission Sources - 6 NYCRR 201-1.2
If an existing emission source was subject to the permitting requirements of 6 NYCRR Part 201 at the time of construction or modification, and the owner and/or operator failed to apply for a permit for such emission source then the following provisions apply:
(a) The owner and/or operator must apply for a permit for such emission source or register the facility in accordance with the provisions of Part 201.
(b) The emission source or facility is subject to all regulations that were applicable to it at the time of construction or modification and any subsequent requirements applicable to existing sources or facilities.
Item E: Emergency Defense - 6 NYCRR 201-1.5
An emergency constitutes an affirmative defense to an action brought for noncompliance with emissions limitations or permit conditions for all faci lities in New York State.
(a) The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs, or other relevant evidence that:
(1) An emergency occurred and that the facility owner and/or operator can identify the cause(s) of the emergency; (2) The equipment at the permitted facility causing the emergency was at the time being properly operated; (3) During the period of the emergency the facility owner and/or operator took all reasonable steps to minimize levels of emissions that exceeded the emission standards, or other requirements in the permit; and (4) The facility owner and/or operator notified the Department within two working days after the event occurred. This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken.
(b) In any enforcement proceeding, the facility owner and/or operator seeking to establish the occurrence of an emergency has the burden of proof.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 7 DRAFT (c) This provision is in addition to any emergency or upset provision contained in any applicable requirement.
Item F: Recycling and Salvage - 6 NYCRR 201-1.7
Where practical, any person who owns or operates an air contamination source shall recycle or salvage air contaminants collected in an air cleaning device according to the requirements of 6 NYCRR.

Item G: Prohibition of Reintroduction of Collected Contaminants to the Air - 6 NYCRR 201-1.8 No person shall unnecessarily remove, handle, or cause to be handled, collected air contaminants from an air cleaning device for recycling, salvage or disposal in a manner that would reintroduce them to the outdoor atmosphere.
Item H: Proof of Eligibility for Sources Defined as Exempt Activities - 6 NYCRR 201- 3.2 (a) The owner and/or operator of an emission source or unit that is eligible to be exempt, may be required to certify that it operates within the specific criteria described in 6 NYCRR Subpart 201-3. The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the Department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to 6 NYCRR Subpart 201-3, during normal operating hours, for the purpose of determining compliance with this and any other state and federal air pollution control requirements, regulations, or law.
Item I: Proof of Eligibility for Sources Defined as Trivial Activities - 6 NYCRR 201- 3.3 (a) The owner and/or operator of an emission source or unit that is listed as being trivial in 6 NYCRR Part 201 may be required to certify that it operates within the specific criteria described in 6 NYCRR Subpart 201-3. The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the Department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to 6 NYCRR Subpart 201-3, during normal operating hours, for the purpose of determining compliance with this and any other state and federal air pollution control requirements, regulations, or law.
Item J: Required Emission Tests - 6 NYCRR 202-1.1Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 8 DRAFT An acceptable report of measured emissions shall be submitted, as may be required by the Commissioner, to ascertain compliance or noncompliance with any air pollution code, rule, or regulation. Failure to submit a report acceptable to the Commissioner within the time stated shall be sufficient reason for the Commissioner to suspend or deny an operating permit. Notification and acceptable procedures are specified in 6 NYCRR Subpart 202-1.
Item K: Open Fires Prohibitions - 6 NYCRR 215.2 Except as allowed by section 215.3 of 6 NYCRR Part 215, no person shall burn, cause, suffer, allowor permit the burning of any materials in an open fire.

Item L: Permit Exclusion - ECL 19-0305 The issuance of this permit by the Department and the receipt thereof by the Applicant does not and shall not be construed as barring, diminishing, adjudicating or in any way affecting any legal, administrative or equitable rights or claims, actions, suits, causes of action or demands whatsoever that the Department may have against the Applicant for violations based on facts and circumstances alleged to have occurred or existed prior to the effective date of this permit, including, but not limited to, any enforcement action authorized pursuant to the provisions of applicable federal law, the Environmental Conservation Law of the State of New York (ECL) and Chapter III of the Official Compilation of the Codes, Rules and Regulations of the State of New York (NYCRR). The issuance of this permit also shall not in any way affect pending or future enforcement actions under the Clean Air Act brought by the United States or any person.
Item M: Federally Enforceable Requirements - 40 CFR 70.6 (b) All terms and conditions in this permit required by the Act or any applicable requirement, including any provisions designed to limit a facility's potential to emit, are enforceable by the Administrator and citizens under the Act. The Department has, in this permit, specifically designated any terms and conditions that are not required under the Act or under any of its applicable requirements as being enforceable under only state regulations.

FEDERAL APPLICABLE REQUIREMENTS The following conditions are federally enforceable.

Condition 1: Maintenance of EquipmentPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 9 DRAFT Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 200.7

Item 1.1: Any person who owns or operates an air contamination source which is equipped with an emission control device shall operate such device and keep it in a satisfactory state of maintenance and repair in accordance with ordinary and necessary practices, standards and procedures, inclusive of manufacturer's specifications, required to operate such device effectively.
Condition 2: Required Emissions Tests Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 202-1.1

Item 2.1: For the purpose of ascertaining compliance or non-compliance with any air pollution control code, rule or regulation, the commissioner may require the person who owns such air contamination source to submit an acceptable report of measured emissions within a stated time.

Condition 3: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 200.7

Item 3.1: The Compliance Demonstration activity will be performed for the Facility.
Regulated Contaminant(s): CAS No: 007664-41-7 AMMONIA

Item 3.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: The facility will maintain records to verify concentration of ammonia stored on-site is less than 19%.
Work Practice Type: PARAMETER OF PROCESS MATERIAL Process Material: AMMONIA Parameter Monitored: CONCENTRATION Upper Permit Limit: 19 percent Reference Test Method: EPA Approved Monitoring Frequency: PER DELIVERY Averaging Method: MAXIMUM - NOT TO BE EXCEEDED AT ANY TIME (INSTANTANEOUS/DISCRETE OR GRAB) Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 10 DRAFT Subsequent reports are due every 12 calendar month(s).
Condition 4: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 200.7

Item 4.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001

Emission Unit: U-00002 Emission Point: EP002
Regulated Contaminant(s): CAS No: 007664-41-7 AMMONIA

Item 4.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: The facility shall install, calibrate, maintain and operate continuous emissions monitors for ammonia. The 5.0 ppmvd corrected to 15% Oxygen limit applies during all turbine loads, all fuels being fired and all duct burner operations.
Manufacturer Name/Model Number: Ammonia Analyzer Parameter Monitored: AMMONIA Upper Permit Limit: 5.0 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: 40 CFR 60 Appendices B & F Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 5: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 201-1.4 (a)

Item 5.1: The Compliance Demonstration activity will be performed for the Facility.

Item 5.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURESPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 11 DRAFT Monitoring Description: The owner or operator shall, within one year following the commencement of operation, submit a Title V permit application to the Department (as per the requirements of paragraph 201-6.3(a)(3)). This application must include start-up, shutdown, and fuel switching data to establish enforceable combustion turbine start-up, shutdown, and fuel switching emission rates for NOx, CO, and NH3, and confirm that such established rates would not result in a violation of applicable NAAQS.
In the event that a minimum of 15 start-ups and 15 shutdowns, while firing distillate oil, does not occur within the one year period defined above, the owner or operator will be required to submit start-up and shutdown data, with an application for permit modification, once the 15 start-ups and shutdowns while firing distillate oil

occur.
Also, if a minimum of 15 fuel switches does not occur within the one year period defined above, the owner or operator will be required to submit fuel switching data with an application for permit modification once the 15 fuel switches occur.
Monitoring Frequency: CONTINUOUS Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 6: Title V Permit Requirement Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 201-6.3 (a) (2)

Item 6.1: A Title V permit application must be submitted to the Department within one year of commencement of operation of this facility.
Condition 7: Facility Permissible Emissions Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 201-7

Item 7.1: The sum of emissions from the emission units specified in this permit shall not equal or exceed the following Potential To Emit (PTE) rate for each regulated contaminant:

CAS No: 0NY075-02-5 PTE: 190,000 pounds per year Name: PM 2.5
Condition 8: Capping Monitoring ConditionPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 12 DRAFT Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 201-7

Item 8.1: Under the authority of 6 NYCRR Part 201-7, this condition contains an emission cap for the purpose of limiting emissions from the facility, emission unit or process to avoid being subject to the following applicable requirement(s) that the facility, emission unit or process would otherwise be subject to:

6 NYCRR 231-2.2

Item 8.2: Operation of this facility shall take place in accordance with the approved criteria, emission limits, terms, conditions and standards in this permit.

Item 8.3: The owner or operator of the permitted facility must maintain all required records on-site for a period of five years and make them available to representatives of the Department upon request. Department representatives must be granted access to any facility regulated by this Subpart, during normal operating hours, for the purpose of determining compliance with this and any other state and federal air pollution control requirements, regulations or law.

Item 8.4: On an annual basis, unless otherwise specified below, beginning one year after the granting of an emissions cap, the responsible official shall provide a certification to the Department that the facility has operated all emission units within the limits imposed by the emission cap. This certification shall include a brief summary of the emissions subject to the cap for that time period and a comparison to the threshold levels that would require compliance with an applicable requirement.

Item 8.5: The emission of pollutants that exceed the applicability thresholds for an applicable requirement, for which the facility has obtained an emissions cap, constitutes a violation of Part 201 and of the Act.

Item 8.6: The Compliance Demonstration activity will be performed for the Facility.
Regulated Contaminant(s): CAS No: 0NY075-02-5 PM 2.5

Item 8.7: Compliance Demonstration shall include the following monitoring:
Capping: Yes Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: Monthly facility-wide emissions of PM-2.5 will be calculated as the sum of monthly PM-2.5 emissions from individual emission units or source groups. EmissionsPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 13 DRAFT will be calculated based on heat input (or, equivalently, from fuel use) and emission factors as described below. Annual facility-wide emissions will then be determined at the end of each month on a rolling 12-month basis in order to demonstrate compliance with the 95 ton per year cap. The source groups included in the emissions cap along with their associated source indices and PM-2.5 emission factors, as used in subsequent equations, are listed in the following. For each source group, the parameter that will be monitored and the monitoring frequency. Continuous monitoring of heat input to the combustion turbines, auxiliary boiler and gas heater(s) will be provided by a digital data acquisition system (DAS).
Unit Op Load Fuel Grp Emission Factor
CT only > 80% Gas 1 0.0056 CT only < 80% Gas 2 0.0073 CT + DB > 80% Gas 3 0.0064 CT only > 85% Oil 4 0.0247 CT only < 85% Oil 5 0.0368 Aux Boiler All Gas 6 0.0063 Gas Heater All Gas 7 0.0076 EDG All Oil 8 0.0091 EFP All Oil 9 0.0429
Where CT = combustion turbines, DB = duct burners, Aux Boiler = auxiliary boiler, EDG = emergency diesel generator and EFP = emergency fire pump
For the combustion turbines, the proposed emission factors represent the maximum PM-2.5 emission factor over the specified normal operating loads for the associated fuel and category. In lieu of using the maximum PM-2.5 emission factors, the owner or operator may elect to use representative PM-2.5 stack test data to determine compliance with the annual PM-2.5 emissions cap.

For each source group (i), the PM-2.5 emissions in tons (Qij) for month j will be calculated as follows: Qij = EFi x Hij / 2000, where:
• EFi = PM-2.5 emission factor or representative PM-2.5 stack test data (lb/mmBtu) for source group i • Hij = monthly heat input (mmBtu) for source group i in month jPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 14 DRAFT In cases where fuel use (gallons of oil or standard cubic feet of gas) for a source group is monitored directly rather than heat input, the equivalent heat input will be determined by multiplying the monthly fuel usage for the source group by the corresponding fuel heating value (mmBtu/gallon or mmBtu/scf), using the higher heating value (HHV) basis for the fuel.
The total facility PM-2.5 emissions in month j (Qj) will be calculated by summing over all source groups (i = 1 to 9) as follows: Qj = ∑ EFi x Hij / 2000 = ∑ Qij.
The facility-wide PM-2.5 emissions over the past 12 months (Qann) ending in month j will be determined by summing the facility-wide PM-2.5 emissions for the most recent 12 months (k = 0 to 11) as follows:
Qann = ∑ Qj-k
After each month, compliance will be demonstrated with the proposed 95 ton/year PM-2.5 emission limit by showing that Qann < 95.
The facility shall conduct periodic testing to demonstrate that emissions from the combustion turbines comply with the lb/mmBtu emission factors for PM-2.5. The combustion turbines will be tested once per year for the first two years of operation with the first test to be conducted within 180 days of startup.

Work Practice Type: PARAMETER OF PROCESS MATERIAL Process Material: FUEL Parameter Monitored: HEAT INPUT Upper Permit Limit: 95 tons per year Monitoring Frequency: CONTINUOUS Averaging Method: 12-month total, rolled monthly Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).
Condition 9: Air pollution prohibited Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 211.1

Item 9.1: No person shall cause or allow emissions of air contaminants to the outdoor atmosphere of such quantity, characteristic or duration which are injurious to human, plant or animal life or to property, or which unreasonably interfere with the comfortable enjoyment of life or property.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 15 DRAFT Notwithstanding the existence of specific air quality standards or emission limits, this prohibition applies, but is not limited to, any particulate, fume, gas, mist, odor, smoke, vapor, pollen, toxic or deleterious emission, either alone or in combination with others.

Condition 10: Facility PTE Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.3

Item 10.1: CPV Valley Energy Center Facility-Wide Potential to Emit
VOC 65 tons/yr NOx 186.8 tons/yr
Condition 11: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 11.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001 Process: P1A

Emission Unit: U-00001 Emission Point: EP001 Process: P2A

Emission Unit: U-00002 Emission Point: EP002 Process: P01

Emission Unit: U-00002 Emission Point: EP002 Process: P02
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 11.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: LAER is 2.0 ppmvd corrected to 15% Oxygen. Will be achieved through use of Dry Low NOx combustion technology and SCR.
The facility shall install, calibrate, maintain, andPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 16 DRAFT operate a continuous emission monitor.
The limit applies at all loads except during start up and shutdown.

Manufacturer Name/Model Number: CEM Upper Permit Limit: 2.0 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: 40 CFR Part 60 Appendix and Method 7E Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 12: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 12.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001 Process: P2A

Emission Unit: U-00002 Emission Point: EP002 Process: P02
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 12.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 1.8 ppmvd corrected to 15% O2. Will be achieved using good combustion controls and an oxidation catalyst. Emission testing to be performed within 180 days of startup.

Manufacturer Name/Model Number: CEM Parameter Monitored: CONCENTRATION Upper Permit Limit: 1.8 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: Method 25A Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 17 DRAFT Condition 13: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 13.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001 Process: P3A

Emission Unit: U-00002 Emission Point: EP002 Process: P03
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 13.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: LAER is 6.0 ppmvd corrected to 15% Oxygen. Will be achieved using water injection and SCR.
The facility shall install, calibrate, maintain, and operate a continuous emission monitor.
The limit applies at all loads except during start up and shutdown.

Manufacturer Name/Model Number: CEM Upper Permit Limit: 6.0 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: 40 CFR Part 60 Appendix and Method 7E Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 14: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 14.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 18 DRAFT Process: P1A

Emission Unit: U-00001 Emission Point: EP001 Process: P3A

Emission Unit: U-00002 Emission Point: EP002 Process: P01

Emission Unit: U-00002 Emission Point: EP002 Process: P03
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 14.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.7 ppmvd corrected to 15% O2. Will be achieved using good combustion controls and an oxidation catalyst. Emission testing to be performed within 180 days of startup.

Manufacturer Name/Model Number: CEM Parameter Monitored: CONCENTRATION Upper Permit Limit: 0.7 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: Method 25A Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE

Condition 15: Emission offset Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.5

Item 15.1: The potential to emit Oxides of Nitrogen (NOx) from the facility has been limited to 187 tons per year. NOx emissions must be offset at a ratio of 1.15 to 1. A total of 216 tons of offsets will be required. The facility will identify the sources of offsets at a later time but prior to construction. There will be a separate noticing at that time.

Condition 16: Emission offsets Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.5

Item 16.1: The potential to emit Volatile Organic Compounds (VOC) from the facility has been limited to 65 tons per year. VOC emissions must be offset at a ratio of 1.15 to 1. A totalPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 19 DRAFT of 75 tons of offsets will be required. The facility will identify the sources of offsets at a later time but prior to construction. There will be a separate noticing at that time.

Condition 17: offsets. Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.5

INVALID FORMAT OF CONDITION IN LIBRARY
Condition 18: Facility potential to emit Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.5

Item 18.1: CPV Valley Energy Center Facility-Wide Potential to Emit

CO 344 tons /yr SO2 42 Tons/yr PM-2.5 95 tons/yr H2SO4 13 tons/yr CO2 2,164,438 tons/yr
Condition 19: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 19.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001

Emission Unit: U-00002

Item 19.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: The combined cycle units shall have a heat rate of 7605 Btu/kW-hr (HHV) or less at ISO conditions without duct burner firing to achieve a design thermal efficiency of 57.4% (LHV).
Within 90 days of start-up of the facility and on anPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 20 DRAFT annual basis thereafter, the owner or operator shall conduct a Department-approved heat rate performance test on a combined cycle unit while it is operating at maximum load to determine heat rate.
The owner or operator shall conduct this heat rate performance test according to the requirements of the American Society of Mechanical Engineers Performance Test Code on Overall Plant Performance, ASME PTC 46-1996.

Parameter Monitored: HEAT RATE Upper Permit Limit: 7605 BTU per kilowatt-hour Reference Test Method: ASME PTC 46-1996 Monitoring Frequency: ANNUALLY Averaging Method: MAXIMUM - NOT TO EXCEED STATED VALUE - SEE MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 20: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 20.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001

Emission Unit: U-00002

Emission Unit: U-00003

Emission Unit: U-00004

Emission Unit: U-00005

Emission Unit: U-00006

Item 20.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner or operators of the facility shall calculatePermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 21 DRAFT the annual emissions (based on a monthly rolling average) of Carbon Dioxide equivalent (CO2e) emitted from the facility.

The Emissions factors will be based on either performance tests (as required by the permit) or developed emission factors from authorized sources (i.e. - AP-42). Fuel usage shall be monitored by fuel flow meters. The information will be kept on-site and available for review for a minimum of five years.
The facility will maintain records on-site for a minimum of five years.

Reference Test Method: As Described in condition Monitoring Frequency: MONTHLY Averaging Method: ANNUAL TOTAL ROLLED MONTHLY Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 21: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 21.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001

Emission Unit: U-00002

Item 21.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The facility shall install, calibrate, maintain, and operate a continuous emission monitor for the total annual Carbon Dioxide equivalent (CO2e) emissions from the two combined-cycle units. The facility shall maintain records on-site for a minimumPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 22 DRAFT of five years.

Reference Test Method: 3A Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL TOTAL ROLLED MONTHLY Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 22: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 22.1: The Compliance Demonstration activity will be performed for the Facility.
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 22.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: BACT FUEL SULFUR LIMIT OF 0.0015% BY WEIGHT.
Work Practice Type: PARAMETER OF PROCESS MATERIAL Process Material: FUEL OIL Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.0015 percent by weight Reference Test Method: ASTM D-2880-71 Monitoring Frequency: PER DELIVERY Averaging Method: MAXIMUM - NOT TO BE EXCEEDED AT ANY TIME (INSTANTANEOUS/DISCRETE OR GRAB) Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 23: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 23.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 23 DRAFT Process: P1A

Emission Unit: U-00001 Process: P2A

Emission Unit: U-00002 Process: P01

Emission Unit: U-00002 Process: P02
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 23.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0022 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0022 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 24: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 24.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P1A

Emission Unit: U-00001 Process: P2A

Emission Unit: U-00002 Process: P01

Emission Unit: U-00002 Process: P02
Regulated Contaminant(s):Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 24 DRAFT CAS No: 007664-93-9 SULFURIC ACID

Item 24.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0007 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0007 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 25: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 25.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P3A

Emission Unit: U-00002 Process: P03
Regulated Contaminant(s): CAS No: 007664-93-9 SULFURIC ACID

Item 25.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0005 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0005 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 25 DRAFT Condition 26: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 26.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P3A

Emission Unit: U-00002 Process: P03
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 26.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0015 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0015 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 27: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 27.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P3A

Emission Unit: U-00002 Process: P03
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 26 DRAFT Item 27.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0368 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0368 pounds per million Btus Reference Test Method: Methods 201/201A and 202 Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 28: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 28.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P2A

Emission Unit: U-00002 Process: P02
Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 28.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: BACT is 3.4 ppmvd corrected to 15% Oxygen. Will be achieved through good combustion controls and an oxidation catalyst.
The facility shall install, calibrate, maintain, and operate a continuous emission monitor.
The limit applies at all loads except during start up and shutdown.
Manufacturer Name/Model Number: CO analyzer Parameter Monitored: CONCENTRATIONPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 27 DRAFT Upper Permit Limit: 3.4 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: Method 10 Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 29: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 29.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P1A

Emission Unit: U-00001 Process: P2A

Emission Unit: U-00002 Process: P01

Emission Unit: U-00002 Process: P02
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10

Item 29.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0073 lb/mmBtu. Will be achieved through use of low sulfur fuels. Emission testing to be performed within 180 days of startup.

Upper Permit Limit: 0.0073 pounds per million Btus Reference Test Method: Methods 201/201A and 202 Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 30: Compliance Demonstration Effective for entire length of PermitPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 28 DRAFT Applicable Federal Requirement:6 NYCRR 231-7.6

Item 30.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Process: P1A

Emission Unit: U-00001 Process: P3A

Emission Unit: U-00002 Process: P01

Emission Unit: U-00002 Process: P03
Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 30.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: BACT is 2.0 ppmvd corrected to 15% Oxygen. Will be achieved through good combustion controls and an oxidation catalyst.
The facility shall install, calibrate, maintain, and operate a continuous emission monitor.
The limit applies at all loads except during start up and shutdown.
Manufacturer Name/Model Number: CO analyzer Parameter Monitored: CONCENTRATION Upper Permit Limit: 2.0 parts per million by volume (dry, corrected to 15% O2) Reference Test Method: Method 10 Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 31: Permit Requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-1.6 (a)Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 29 DRAFT Item 31.1: The CAIR designated representative of each CAIR NOx Ozone Season source shall: (i) submit to the department a complete CAIR permit application under section 243-3.3 in accordance with the deadlines specified in section 243-3.2; and (ii) submit in a timely manner any supplemental information that the department determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit.
The owners and operators of each CAIR NOx Ozone Season source shall have a CAIR permit issued by the department under Subpart 243-3 for the source and operate the source and the unit in compliance with such CAIR permit.
Condition 32: Monitoring requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-1.6 (b)

Item 32.1: The emissions measurements recorded and reported in accordance with Subpart 243-8 shall be used to determine compliance by each CAIR NOx Ozone Season source with the CAIR NOx Ozone Season emissions limitation under subdivision (c) of this section.
Condition 33: NOx Ozone Season Emission Requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-1.6 (c)

Item 33.1: As of the allowance transfer deadline for a control period, the owners and operators of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source shall hold, in the source's compliance account, CAIR NOx Ozone Season allowances available for compliance deductions for the control period under section 243-6.5(a) in an amount not less than the tons of total nitrogen oxides emissions for the control period from all CAIR NOx Ozone Season units at the source, as determined in accordance with Subpart 243-8. The CAIR NOx ozone season is the period beginning May 1 of a calendar year, except as provided in section 243-1.6(c)(2), and ending on September 30 of the same year, inclusive.

A CAIR NOx Ozone Season unit shall be subject to the requirements under paragraph (c)(1) of this section for the control period starting on the later of May 1, 2009 or the deadline for meeting the unit's monitor certification requirements under sections 243-8.1(b)(1), (2), (3), or (7) and for each control period thereafter.
A CAIR NOx Ozone Season allowance shall not be deducted, for compliance with the requirements under paragraph (c)(1) of this section, for a control period in a calendar year before the year for which the CAIR NOx Ozone Season allowance was allocated.
CAIR NOx Ozone Season allowances shall be held in, deducted from, or transferred into or among CAIR NOx Ozone Season Allowance Tracking System accounts in accordance with Subparts 243-6, 243-7, and 243-9.
A CAIR NOx Ozone Season allowance is a limited authorization to emit one ton of nitrogenPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 30 DRAFT oxides in accordance with the CAIR NOx Ozone Season Trading Program. No provision of the CAIR NOx Ozone Season Trading Program, the CAIR permit application, the CAIR permit, or an exemption under section 243-1.5 and no provision of law shall be construed to limit the authority of the State or the United States to terminate or limit such authorization.
A CAIR NOx Ozone Season allowance does not constitute a property right.
Upon recordation by the Administrator under Subpart 243-6, 243-7, or 243-9, every allocation, transfer, or deduction of a CAIR NOx Ozone Season allowance to or from a CAIR NOx Ozone Season source's compliance account is incorporated automatically in any CAIR permit of the

source. Condition 34: Excess emission requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-1.6 (d)

Item 34.1: If a CAIR NOx Ozone Season source emits nitrogen oxides during any control period in excess of the CAIR NOx Ozone Season emissions limitation, then:
(1) the owners and operators of the source and each CAIR NOx Ozone Season unit at the source shall surrender the CAIR NOx Ozone Season allowances required for deduction under section 243-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law; and
(2) each ton of such excess emissions and each day of such control period shall constitute a separate violation of this Subpart, the Act, and applicable State law.
Condition 35: Recordkeeping and reporting requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-1.6 (e)

Item 35.1: Unless otherwise provided, the owners and operators of the CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator.
(i) The certificate of representation under section 243-2.4 for the CAIR designated representative for the source and each CAIR NOx Ozone Season unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under section 243-2.4 changing the CAIR designated representative.
(ii) All emissions monitoring information, in accordance with Subpart 243-8, provided that to the extent that Subpart 243-8 provides for a three-year period for recordkeeping, the three-year period shall apply.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 31 DRAFT (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR NOx Ozone Season Trading Program.
(iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR NOx Ozone Season Trading Program or to demonstrate compliance with the requirements of the CAIR NOx Ozone Season Trading Program.
Condition 36: Authorization and responsibilities of CAIR designated representative Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-2.1

Item 36.1: Except as provided under section 243-2.2, each CAIR NOx Ozone Season source, including all CAIR NOx Ozone Season units at the source, shall have one and only one CAIR designated representative, with regard to all matters under the CAIR NOx Ozone Season Trading Program concerning the source or any CAIR NOx Ozone Season unit at the source.
The CAIR designated representative of the CAIR NOx Ozone Season source shall be selected by an agreement binding on the owners and operators of the source and all CAIR NOx Ozone Season units at the source and shall act in accordance with the certification statement in section 243-2.4(a)(4)(iv).
Upon receipt by the Administrator of a complete certificate of representation under section 243-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx Ozone Season source represented and each CAIR NOx Ozone Season unit at the source in all matters pertaining to the CAIR NOx Ozone Season Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit.
No CAIR permit will be issued, no emissions data reports will be accepted, and no CAIR NOx Ozone Season Allowance Tracking System account will be established for a CAIR NOx Ozone Season unit at a source, until the Administrator has received a complete certificate of representation under section 243-2.4 for a CAIR designated representative of the source and the CAIR NOx Ozone Season units at the source.
Each submission under the CAIR NOx Ozone Season Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR NOx Ozone Season source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibi lity for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 32 DRAFT Condition 37: Certificate of representation Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-2.4

Item 37.1: Unless otherwise required by the department or the Administrator, documents of agreement referred to in the certificate of representation shall not be submitted to the department or the Administrator. Neither the department nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.
Condition 38: General requirements Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-8.1

Item 38.1: The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR NOx Ozone Season unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this Subpart and in Subpart H of 40 CFR Part 75. For purposes of complying with such requirements, the definitions in section 243-1.2 and in 40 CFR 72.2 shall apply, and the terms "affected unit," "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR NOx Ozone Season unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 243-1.2. The owner or operator of a unit that is not a CAIR NOx Ozone Season unit but that is monitored under 40 CFR 75.72(b)(2)(ii) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR NOx Ozone Season unit.
'Requirements for installation, certification, and data accounting.' The owner or operator of each CAIR NOx Ozone Season unit shall:
(1) install all monitoring systems required under this Subpart for monitoring NOx mass emissions and individual unit heat input (including all systems required to monitor NOx emission rate, NOx concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with 40 CFR 75.71 and 40 CFR 75.72);
(2) successfully complete all certification tests required under section 243-8.2 and meet all other requirements of this Subpart and 40 CFR Part 75 applicable to the monitoring systems under paragraph (a)(1) of this section; and
(3) record, report, and quality-assure the data from the monitoring systems under paragraph (a)(1) of this section.

Condition 39: Prohibitions Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-8.1

Item 39.1:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 33 DRAFT No owner or operator of a CAIR NOx Ozone Season unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this Subpart without having obtained prior written approval in accordance with section 243-8.6.
No owner or operator of a CAIR NOx Ozone Season unit shall operate the unit so as to discharge, or allow to be discharged, NOx emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.
No owner or operator of a CAIR NOx Ozone Season unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording NOx mass emissions discharged into the atmosphere or heat input, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.
No owner or operator of a CAIR NOx Ozone Season unit shall retire or permanently discontinue use of the continuous emission monitoring system, any component thereof, or any other approved monitoring system under this Subpart, except under any one of the following circumstances: (i) during the period that the unit is covered by an exemption under section 243-1.5 that is in effect; (ii) the owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this Subpart and 40 CFR Part 75, by the department for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or (iii) the CAIR designated representative submits notification of the date of certification testing of a replacement monitoring system for the retired or discontinued monitoring system in accordance with section 243-8.2(d)(3)(i).
Condition 40: Quarterly reports Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-8.5 (d)

Item 40.1: The CAIR designated representative shall submit quarterly reports, as follows:
If the CAIR NOx Ozone Season unit is subject to an Acid Rain emissions limitation or a CAIR NOx emissions limitation or if the owner or operator of such unit chooses to report on an annual basis under this Subpart, the CAIR designated representative shall meet the requirements of Subpart H of 40 CFR Part 75 (concerning monitoring of NOx mass emissions) for such unit for the entire year and shall report the NOx mass emissions data and heat input data for such unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with:
(i) for a unit that commences commercial operation before July 1, 2007, the calendar quarter covering May 1, 2008 through June 30, 2008;
(ii) for a unit that commences commercial operation on or after July 1, 2007, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 243-8.1(b), unless that quarter is the third or fourthPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 34 DRAFT quarter of 2007 or the first quarter of 2008, in which case reporting shall commence in the quarter covering May 1, 2008 through June 30, 2008.
The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.73(f).
For CAIR NOx Ozone Season units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Annual Trading Program, CAIR SO2 Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by this Subpart.
Condition 41: Compliance certification Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 243-8.5 (e)

Item 41.1: The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:
(1) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the quality assurance procedures and specifications;
(2) for a unit with add-on NOx emission controls and for all hours where NOx data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate NOx emissions; and
(3) for a unit that is reporting on a control period basis under subparagraph (d)(2)(ii) of this section, the NOx emission rate and NOx concentration values substituted for missing data under Subpart D of 40 CFR Part 75 are calculated using only values from a control period and do not systematically underestimate NOx emissions.
Condition 42: CAIR NOx Annual Trading Program General Conditions Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 244-1

Item 42.1: 1) As of midnight of March 1, or midnight of the first business day thereafter if March 1 is not a business day, the owners and operators shall hold, in their compliance account, Clean Air Interstate Rule (CAIR) NOx allowances available for compliance deductions for the previous control period (January 1 through December 31), in an amount not less than the total tons of nitrogen oxides emissions from all CAIR NOx units at the source during that control period. A CAIR NOx allowance shall not be deducted for a control period in a calendar year before thePermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 35 DRAFT year for which the CAIR NOx allowance was allocated. [244-1.6(c)(1), 244-1.2(b)(5), 244-1.2(b)(36), 244-1.6(c)(3)]
2) The owners and operators shall hold in their compliance account, CAIR NOx allowances available for compliance deductions for the control period starting on the later of January 1, 2009 or the deadline for meeting a CAIR NOx unit's monitor certification requirements under section 244-8.1(b)(1), (2), or (5) and for each control period thereafter. [244-1.6(c)(2)]
3) If a CAIR NOx source emits nitrogen oxides during any control period in excess of the CAIR NOx emissions limitation, the owners and operators of the CAIR NOx source shall surrender the CAIR NOx allowances required for deduction under 6NYCRR Part 244-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this permit, the Act, and applicable State law. [(244-1.6(d)]
4) Unless otherwise provided, the owners and operators of the CAIR NOx source shall keep on site each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator: [244-1.6(e)] (i) The certificate of representation under 6NYCRR Part 244-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five year period unti l such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 244-2.4 changing the CAIR designated representative. (ii) All emissions monitoring information, in accordance with 6NYCRR Part 244-8, provided that to the extent that 6NYCRR Part 244-8 provides for a three year period for recordkeeping, the three year period shall apply. (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR NOx Annual Trading Program. (iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR NOx Annual Trading Program or to demonstrate compliance with the requirements of the CAIR NOx Annual Trading Program.
Condition 43: Designated CAIR Representative Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 244-2

Item 43.1: 1) Each Clean Air Interstate Rule (CAIR) NOx source shall have one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 244-2.2, with regard to all matters under the CAIR NOx Annual Trading Program. The CAIR designated representative shall be selected by an agreement binding on the owners and operators of the source and act in accordance with the certification statement in 6NYCRR Part 244-2.4(a)(4)(iv). Upon receipt by the Administrator of a complete certificate of representation under 6NYCRR Part 244-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx source represented in all matters pertaining to the CAIR NOx Annual Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issuedPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 36 DRAFT to the CAIR designated representative by the department, the Administrator, or a court regarding the source. [244-2.1(a), (b) & (c)]
(2) Each submission under the CAIR NOx Annual Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR NOx source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment." [244-2.1(e)]
Condition 44: Compliance Demonstration Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 244-8

Item 44.1: The Compliance Demonstration activity will be performed for the Facility.
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 44.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Monitoring and Reporting NOX emissions
(1) The owners and operators, and to the extent applicable, the CAIR designated representative shall comply with all recordkeeping and reporting requirements in this condition, the applicable recordkeeping and reporting requirements under 40 CFR 75, and the requirements of 6NYCRR Part 244-2.1(e)(1).
(2) The CAIR designated representative shall submit quarterly reports of the the NOx mass emissions data and heat input data for each CAIR NOx unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under 6NYCRR Part 244-8.1(b), unless that quarter is the third or fourth quarter of 2007, in which case reporting shall commence in the quarter covering January 1, 2008 through March 31,Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 37 DRAFT 2008.
(3) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.73(f).
(4) For CAIR NOx units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Ozone Season Trading Program, CAIR SO2 Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by this Subpart.
(5) 'Compliance certification.' The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:
(i) the monitoring data submitted were recorded in accordance with the applicable requirements of 6NYCRR Part 244 and 40 CFR Part 75, including the quality assurance procedures and specifications; and
(ii) for a unit with add-on NOx emission controls and for all hours where NOx data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate NOx emissions.
(6) Whenever any monitoring system fails to meet the quality-assurance and quality-control requirements or data validation requirements of 40 CFR part 75, data shall be substituted using the applicable missing data procedures in Subpart D or Subpart H of, or appendix D or appendix E to 40 CFR part 75. [ 244-8.3(a) ]
(7) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under 6NYCRR Part 244-8.1(a)(1) that may significantly affect the ability of the system toPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 38 DRAFT accurately measure or record NOx mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b) . Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system, and any excepted NOx monitoring system under appendix E to 40 CFR part 75, under 6NYCRR Part 244-8.1(a)(1) are subject to the recertification requirements in 40 CFR 75.20(g)(6). [224-8.2(d)(2)

Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL TOTAL Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 45: CAIR SO2 Trading Program General Provisions Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 245-1

Item 45.1: 1) As of midnight of March 1, or midnight of the first business day thereafter (if March 1 is not a business day) for a control period, the owners and operators of each Clean Air Interstate Rule (CAIR) SO2 source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO2 allowances available for compliance deductions for the control period (January 1 through December 31) not less than the tons of total sulfur dioxide emissions for the control period from all CAIR SO2 units at the source. A CAIR SO2 allowance shall not be deducted, for compliance with the requirements under paragraph (2) of this section, for a control period in a calendar year before the year for which the CAIR SO2 allowance was allocated. [(245-1.2(b)(5), 245-1.6(c)(1), 245-1.2(b)(36), 245-1.6(c)(3)]
2) The owners and operators shall hold in their compliance account, CAIR SO allowances available for compliance deductions for the control period starting on the later of January 1, 2010 or the deadline for meeting a CAIR SO2 unit's monitor certification requirements under section 245-8.1(b)(1), (2), or (5) and for each control period thereafter. [245-1.6(c)(2)]
3) If a CAIR SO2 source emits sulfur dioxide during any control period in excess of the CAIRPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 39 DRAFT SO2 emissions limitation, the owners and operators of the source shall surrender the CAIR SO2 allowances required for deduction under 6NYCRR Part 245-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this Subpart, the Act, and applicable State law. [(245-1.6(d)]
4) Unless otherwise provided, the owners and operators of the CAIR SO2 source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator: [245-1.6(e)] (i) The certificate of representation under 6NYCRR Part 245-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 245-2.4 changing the CAIR designated representative. (ii) All emissions monitoring information, in accordance with 6NYCRR Part 245-8, provided that to the extent that 6NYCRR Part 245-8 provides for a three-year period for recordkeeping, the three-year period shall apply. (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program. (iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR SO2 Trading Program or to demonstrate compliance with the requirements of the CAIR SO2 Trading Program.
Condition 46: Designated CAIR Representative Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 245-2

Item 46.1: 1) Each CAIR SO2 source shall have one and only one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 245-2.2, with regard to all matters under the CAIR SO2 Trading Program. The CAIR designated representative of the CAIR SO2 source shall be selected by an agreement binding on the owners and operators of the source and all CAIR SO2 units at the source and shall act in accordance with the certification statement in 6NYCRR Part 245-2.4(a)(4)(iv). Upon r eceipt by the Administrator of a complete certificate of representation under 6NYCRR Part 245-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR SO2 source represented and each CAIR SO2 unit at the source in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit. [245-2.1(a), (b) & (c)]
(2) Each submission under the CAIR SO2 Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR SO2 source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify underPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 40 DRAFT penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment." [245-2.1(e)]
Condition 47: Compliance Demonstration Effective for entire length of Permit
Applicable Federa l Requirement:6 NYCRR Subpart 245-8

Item 47.1: The Compliance Demonstration activity will be performed for the Facility.
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 47.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Monitoring and Reporting SO2 emissions:
1) The owners and operators, and to the extent applicable, the Clean Air Interstate Rule (CAIR) designated representative, of a CAIR SO2 unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in Subpart 6 NYCRR Part 245-8 and in 40 CFR Part 75, Subparts F and G. For purposes of complying with such requirements, the definitions in section 245-1.2 and 40 CFR 72.2 shall apply, and the terms "affected unit," "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR SO2 unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 245-1.2. The owner or operator of a unit that is not a CAIR SO2 unit but that is monitored under 40 CFR 75.16(b)(2) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR SO2 unit. [245-8.1]
2)The owner or operator of each CAIR SO2 unit shall: [245-8.1(a)] (i) install all monitoring systems required under this Subpart for monitoring SO2 mass emissions and individual unit heat input (including all systems required to monitor SO2 concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, asPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 41 DRAFT applicable, in accordance with 40 CFR 75.11 and 40 CFR 75.16); (ii) successfully complete all certification tests required under Part 245-8.2 and meet all other requirements of this section and 40 CFR Part 75 applicable to the monitoring systems under this section; and (iii) record, report, and quality-assure the data from the monitoring systems under paragraph of this section.
3) The owner or operator shall meet the monitoring system certification and other requirements of section 245-8.1(a)(1) and (2) on or before the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under section 245-8.1(a)(1) on and after the following dates. [245-8.1(b)] (i) For the CAIR SO2 unit that commences commercial operation before July 1, 2008, by January 1, 2009. (ii) For the CAIR SO2 unit that commences commercial operation on or after July 1, 2008, by the later of the following dates: January 1, 2009; or 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.
4) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under section 245-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record SO2 mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include: replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system under section 245-8.1(a)(1) is subject to the recertification requirements in 40 CFR 75.20(g)(6). [245-8.2(d)(2)]
5) Whenever any monitoring system fails to meet thePermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 42 DRAFT quality-assurance and quality-control requirements or data validation requirements of 40 CFR Part 75, data shall be substituted using the applicable missing data procedures in Subpart D of or appendix D to 40 CFR Part 75. [245-8.3(a)]
6) The CAIR designated representative shall comply with all recordkeeping and reporting requirements in section 245-8.3, the applicable recordkeeping and reporting requirements in Subparts F and G of 40 CFR Part 75, and the requirements of section 245-2.1(e)(1). [245-8.5(a)]
7) The owner or operator of a CAIR SO2 unit shall comply with requirements of 40 CFR 75.62 for monitoring plans. [245-8.5(b)]
8) The CAIR designated representative shall submit an application to the department within 45 days after completing all initial certification or recertification tests required under section 245-8.2, including the information required under 40 CFR 75.63. [245-8.5(c) ]
9) The CAIR designated representative shall submit quarterly reports of the SO2 mass emissions data and heat input data for each CAIR SO2 unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with: [245-8.5(d)(1)] i) the calendar quarter covering January 1, 2009 through March 31, 2009 for a unit that commences commercial operation before July 1, 2008; or ii) for a unit that commences commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 245-8.1(b), unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 through March 31, 2009.
10) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.64. [245-8.5(d)(2)]
11) For CAIR SO2 units that are also subject to an Acid Rain emissions limitation or the CAIR NOX Annual Trading Program, CAIR NOX Ozone Season Trading Program, or the Mercury Reduction Program for Coal-Fired Electric UtilityPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 43 DRAFT Steam Generating Units (6 NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the SO2 mass emission data, heat input data, and other information required by this Subpart. [245-8.5(d)(3)]
12) The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that: [245-8.5(e)] i) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the quality assurance procedures and specifications; and ii) for a unit with add-on SO2 emission controls and for all hours where SO2 data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate SO2 emissions.
Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL TOTAL Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).
Condition 48: EPA Region 2 address. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.4, NSPS Subpart A

Item 48.1: All requests, reports, applications, submittals, and other communications to the Administrator pursuant to this part shall be submitted in duplicate to the following address:
Director, Division of Enforcement and Compliance Assistance USEPA Region 2 290 Broadway, 21st Floor New York, NY 10007-1886
Copies of all correspondence to the administrator pursuant to this part shall also be submitted to the NYSDEC Regional Office issuing this permit (see address at the beginning of this permit) and to the following address:

NYSDEC Bureau of Quality AssurancePermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 44 DRAFT 625 Broadway Albany, NY 12233-3258

Condition 49: Date of construction notification - If a COM is not used. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.7(a), NSPS Subpart A

Item 49.1: Any owner or operator subject to this part shall furnish the Administrator with the following information:
1) a notification of the date construction or reconstruction commenced, post marked no later than 30 days after such date;
3) a notification of the actual date of initial start up, post marked within 15 days after such date;
4) a notification of any physical or operational change to an existing facility which may increase the emission rate of any air pollutant to which a standard applies, unless the change is specifically exempted under this part. The notice shall be post marked 60 days or as soon as practicable before the change is commenced and shall include information describing the precise nature of the change, present and proposed emission control systems, productive capability of the facility before and after the change, and the expected completion date of the change. The Administrator may request additional information regarding the change;
5) a notification of the date upon which the demonstration of continuous monitoring system performance commences, post marked not less than 30 days prior to such date;
6) a notification of the anticipated date for conducting the opacity observations, post marked not less than 30 days prior to such date.
Condition 50: Recordkeeping requirements. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.7(b), NSPS Subpart A

Item 50.1: Affected owners or operators shall maintain records of occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility; any malfunction of the air pollution control equipment; or any periods during which a continuous monitoring system or monitoring device is inoperative.
Condition 51: Facility files for subject sources. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.7(f), NSPS Subpart A

Item 51.1: The following files shall be maintained at the facility for all affected sources: all measurements, including continuous monitoring systems, monitoring device, and performance testing measurements; all continuous monitoring system performance evaluations;all continuousPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 45 DRAFT monitoring device calibration checks; adjustments and maintenance performed on these systems or devices; and all other information required by this part, recorded in permanent form suitable for inspections. The file shall be maintained for at least two years following the date of such measurements, reports, and records.
Condition 52: Performance testing timeline. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.8(a), NSPS Subpart A

Item 52.1: Within 60 days after achieving the maximum production rate, but not later than 180 days after initial startup of the facility, the owner or operator of the facility shall conduct performance testing and provide the results of such tests, in a written report, to the Administrator.

Condition 53: Performance test methods. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.8(b), NSPS Subpart A

Item 53.1: Performance testing shall be conducted in accordance with the methods and procedures prescribed in 40 CFR 60 or by alternative methods and procedures approved by the Administrator.

Condition 54: Prior notice. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.8(d), NSPS Subpart A

Item 54.1: The owner or operator shall provide the Administrator with prior notice of any performance test at least 30 days in advance of testing.
Condition 55: Performance testing facilities. Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.8(e), NSPS Subpart A

Item 55.1: The following performance testing facilities shall be provided during all tests:
1) sampling ports adequate for tests methods applicable to such facility;
2) a safe sampling platform;
3) a safe access to the sampling platform; and
4) utilities for sampling and testing equipment.
Condition 56: Number of required tests. Effective for entire length of PermitPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 46 DRAFT Applicable Federal Requirement:40CFR 60.8(f), NSPS Subpart A

Item 56.1: Each performance test shall consist of three separate runs, at the specified duration required in the applicable test method. Compliance with all applicable standards shall be determined by using the arithmetic means of the results of the three runs.
Condition 57: Applicability Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60, NSPS Subpart IIII

Item 57.1: This Condition applies to:

Emission Unit: U00004 Process: P04 Emission Source: EG001

Emission Unit: U00005 Process: P05 Emission Source: FP001

Item 57.2: Facilities that have stationary compression ignition internal combustion engines must comply with applicable portions of 40 CFR 60 Subpart IIII.
Condition 58: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.4335, NSPS Subpart KKKK

Item 58.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001

Emission Unit: U-00002 Emission Point: EP002
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 58.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: As an alternative to continuously monitoring the water or steam to fuel ratio, the facility shall install, certify, maintain, and operate a continuous emission monitoringPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 47 DRAFT system (CEMS) consisting of a NOx monitor and a diluents gas (oxygen or carbon dioxide) monitor, to determine hourly NOx emissions in parts per million (ppm).
Reference Test Method: EPA Approved Monitoring Frequency: CONTINUOUS Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 59: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.4375(a), NSPS Subpart KKKK

Item 59.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001

Emission Unit: U-00002

Item 59.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: For each affected unit required to continuously monitor parameters or emissions, or to periodically determine the fuel sulfur content, reports of excess emissions and monitor downtime shall be submitted in accordance with 40 CFR 60.7(c). Excess emissions must be reported for all periods of unit operation, including start-up, shutdown, and malfunction.
Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 60: Facility Subject to Title IV Acid Rain Regulations and Permitting Effective for entire length of Permit
Applicable Federal Requirement:40 CFR Part 72
Item 60.1: This facility is subject to the Title IV Acid Rain Regulations found in 40 CFR Parts 72, 73, 75, 76, 77 and 78. The Acid Rain Permit is an attachment to this permit.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 48 DRAFT ** ** Emission Unit Level  
Condition 61: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 227-1.3 (a)

Item 61.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001

Emission Unit: U-00002

Emission Unit: U-00003

Emission Unit: U-00004

Emission Unit: U-00005

Emission Unit: U-00006

Item 61.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: No owner or operator of a combustion installation shall operate the installation in such a way to emit greater than 20 percent opacity except for one six minute period per hour, not to exceed 27 percent, based upon the six minute average in reference test Method 9 in Appendix A of 40 CFR 60.

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: Method 9 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 6-MINUTE AVERAGE (METHOD 9) Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 62: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 227-1.3 (a)Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 49 DRAFT Item 62.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001 Process: P3A Emission Source: CT001

Emission Unit: U-00002 Emission Point: EP002 Process: P03 Emission Source: CT002

Item 62.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: No person shall operate a stationary combustion installation which exhibits greater than 20 percent opacity (six minute average), except for one-six-minute period per hour of not more than 27 percent opacity. The Department reserves the right to perform or require the performance of a Method 9 opacity evaluation at any time during facility operation.
The permittee will conduct observations of visible emissions from the emission unit, process, etc. to which this condition applies at the monitoring frequency stated below while the process is in operation. The permittee will investigate, in a timely manner, any instance where there is cause to believe that visible emissions have the potential to exceed the opacity standard.
The permittee shall investigate the cause, make any necessary corrections, and verify that the excess visible emissions problem has been corrected. If visible emissions with the potential to exceed the standard continue, the permittee will conduct a Method 9 assessment within the next operating day of the sources associated with the potential noncompliance to determine the degree of opacity and will notify the NYSDEC if the method 9 test indicates that the opacity standard is not met.
Records of visible emissions observations (or any follow-up method 9 tests), investigations and corrective actions will be kept on-site. Should the Department determine that permittee's record keeping format is inadequate to demonstrate compliance with this condition, it shall provide written notice to the permittee stating the inadequacies, and permittee shall have 90 days to revise its prospective record keeping format in a manner acceptable to the Department.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 50 DRAFT Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: EPA Method 9 Monitoring Frequency: When firing distillate fuel oil Averaging Method: 6-MINUTE AVERAGE (METHOD 9) Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).
Condition 63: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.43c(c), NSPS Subpart Dc

Item 63.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003

Item 63.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: On and after the date on which the initial performance test is completed or required to be completed under §60.8, whichever date comes first, no owner or operator of an affected facility shall cause to be discharged into the atmosphere from that affected facility any gases that exhibit greater than 20 percent opacity (6-minute average), except for one 6-minute period per hour of not more than 27 percent opacity. The facility shall perfom a method 9 evaluation.

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: Method 9 Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 6 MINUTE AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 64: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.48c(a), NSPS Subpart Dc

Item 64.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003

Item 64.2:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 51 DRAFT Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner and operator of each affected facility shall submit notification of the date of construction or reconstruction, anticipated startup, and actual startup, as provided by 40 CFR 60.7 of this part. This notification shall include: (1) The design heat input capacity of the affected facility and identification of fuels to be combusted in the affected facility. (2) If applicable, a copy of any Federally enforceable requirement that limits the annual capacity factor for any fuel or mixture of fuels under 40 CFR 60.42c., or 40 CFR 60.43c. (3) The annual capacity factor at which the owner or operator anticipates operating the affected facility based on all fuels fired and based on each individual fuel fired.
Monitoring Frequency: SINGLE OCCURRENCE Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION
Condition 65: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 65.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 65.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: Operation of the Auxiliary boiler is restricted to 2000 hours per year. Facility will maintain usage records and fuel consumption.
Work Practice Type: HOURS PER YEAR OPERATION Upper Permit Limit: 2000 hoursPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 52 DRAFT Monitoring Frequency: DAILY Averaging Method: 12-month total, rolled monthly Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).
Condition 66: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 66.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 66.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.0038 lb/mmBtu. Will be achieved using good combustion controls. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.0038 pounds per million Btus Reference Test Method: Method 25A Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 67: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 67.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 67.2: Compliance Demonstration shall include the following monitoring:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 53 DRAFT Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.0450 lb/mmBtu. Will be achieved using low NOx burners and flue gas re circulation. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.045 pounds per million Btus Reference Test Method: Method 7E Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 68: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 68.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10

Item 68.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0063 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.0063 pounds per million Btus Reference Test Method: Method 201/201A and 202 Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 69: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 69.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3BPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 54 DRAFT Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 69.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0022 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.0022 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 70: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 70.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 007664-93-9 SULFURIC ACID

Item 70.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0002 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.0002 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 71: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 55 DRAFT Item 71.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00003 Process: P3B
Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 71.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0721 lb/mmBtu. Will be achieved using good combustion controls. Emission testing to be performed within 180 days of startup.
Upper Permit Limit: 0.0721 pounds per million Btus Reference Test Method: Method 10 Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 72: Alternative recordkeeping Effective for entire length of Permit
Applicable Federal Requirement:40CFR 60.48c(g)(2), NSPS Subpart Dc

Item 72.1: This Condition applies to Emission Unit: U-00003 Process: P3B Emission Source: AUX01

Item 72.2: 

### As an alternative to meeting the requirements of 40 CFR 60.48c(g)(1), the owner or operator of an affected facility that combusts only natural gas, wood, fuels using fuel certification in 40 CFR 60.48c(f) to demonstrate compliance with the SO 2 standard, fuels not subject to an emissions standard (excluding opacity), or a mixture of these fuels may elect to record and maintain records of the amount of each fuel combusted during each calendar month.
Condition 73: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 73.1: The Compliance Demonstration activity will be performed for:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 56 DRAFT Emission Unit: U-00004 Process: P04
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 73.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.0331 lb/mmBtu. Will be achieved using good combustion controls. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 0.0331 pounds per million Btus Reference Test Method: Method 25A Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 74: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 74.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00004 Process: P04
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 74.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 4.77 grams per brake horsepower-hour. Will be achieved using good combustion controls. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 4.77 grams per brake horsepower-hour Reference Test Method: Method 7E Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 57 DRAFT Condition 75: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 75.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00004 Process: P04
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10

Item 75.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.03 g/hp-hr. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.03 grams per brake horsepower-hour Reference Test Method: Method 201/201A and 202 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 76: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 76.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00004 Process: P04
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 76.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0014 lb/mmBtu. Will be achieved using lowPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 58 DRAFT sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.0014 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 77: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 77.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00004 Process: P04
Regulated Contaminant(s): CAS No: 007664-93-9 SULFURIC ACID

Item 77.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.00003 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.00003 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 78: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 78.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00004 Process: P04
Regulated Contaminant(s):Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 59 DRAFT CAS No: 000630-08-0 CARBON MONOXIDE

Item 78.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.45 g/hp-hr. Will be achieved using good combustion controls. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.45 grams per brake horsepower-hour Reference Test Method: Method 10 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 79: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 79.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 79.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.857 pounds per m illion Btus. Will be achieved using good combustion controls. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 0.857 pounds per million Btus Reference Test Method: Method 7E Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 80: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 60 DRAFT Item 80.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 80.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.3612 lb/mmBtu. Will be achieved using good combustion controls. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 0.3612 pounds per million Btus Reference Test Method: Method 25A Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 81: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 81.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 81.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.75 lbs/mmBtus.. Will be achieved using good combustion controls. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.75 pounds per million Btus Reference Test Method: Method 10 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORINGPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 61 DRAFT DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 82: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 82.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10

Item 82.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.043 lb/mmBtus.. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.043 pounds per million Btus Reference Test Method: Method 201/201A and 202 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 83: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 83.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 83.2: Compliance Demonstration shall include the following monitoring:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 62 DRAFT Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0014 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.0014 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 84: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 84.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005 Process: P05
Regulated Contaminant(s): CAS No: 007664-93-9 SULFURIC ACID

Item 84.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.00003 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.00003 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 85: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 85.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 63 DRAFT Process: P06
Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 85.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.058 pounds per m illion Btus for each individual gas heater. Will be achieved using forced draft low NOx Burner. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 0.058 pounds per million Btus Reference Test Method: Method 7E Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 86: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-5.4

Item 86.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006 Process: P06
Regulated Contaminant(s): CAS No: 0NY998-00-0 VOC

Item 86.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: LAER is 0.011 lb/mmBtu. Will be achieved using good combustion controls. Emission testing to be performed upon request of the Department.
Upper Permit Limit: 0.011 pounds per million Btus Reference Test Method: Method 25A Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 64 DRAFT Condition 87: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 87.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006 Process: P06
Regulated Contaminant(s): CAS No: 007664-93-9 SULFURIC ACID

Item 87.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0002 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.0002 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 88: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 88.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006 Process: P06
Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 88.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.084 lbs/mmBtus.. Will be achieved using good combustion controls. Emission testing to be performed at the request of the Department..Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 65 DRAFT Upper Permit Limit: 0.084 pounds per million Btus Reference Test Method: Method 10 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 89: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 89.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006 Process: P06
Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES CAS No: 0NY075-00-5 PM-10

Item 89.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0076 lb/mmBtus.. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.0076 pounds per million Btus Reference Test Method: Method 201/201A and 202 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE
Condition 90: Compliance Demonstration Effective for entire length of Permit
Applicable Federal Requirement:6 NYCRR 231-7.6

Item 90.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006 Process: P06
Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 66 DRAFT Item 90.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: BACT is 0.0022 lb/mmBtu. Will be achieved using low sulfur fuel. Emission testing to be performed at the request of the Department..
Upper Permit Limit: 0.0022 pounds per million Btus Reference Test Method: EPA approved methods Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 67 DRAFT STATE ONLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

NOTIFICATION OF GENERAL PERMITTEE OBLIGATIONS This section contains terms and conditions which are not federally enforceable. Permittees may also have other obligations under regulations of general applicability
Item A: Public Access to Recordkeeping for Facilities With State Facility Permit s - 6 NYCRR 201- 1.10 (a) Where facility owners and/or operators keep records pursuant to compliance with the requirements of 6 NYCRR Subpart 201-5.4, and/or the emission capping requirements of 6 NYCRR Subpart 201-7, the Department will make such records available to the public upon request in accordance with 6 NYCRR Part 616 - Public A ccess to Records. Facility owners and/or operators must submit the records required to comply with the request within sixty working days of written notification by the Department.

Item B: General Provisions for State Enforceable Permit Terms and Condition - 6 NYCRR Part 201-5 Any person who owns and/or operates stationary sources shall operate and maintain all emission units and any required emission control devices in compliance with all applicable Parts of this Chapter and existing laws, and shall operate the facility in accordance with all criteria, emission limits, terms, conditions, and standards in this permit. Failure of such person to properly operate and maintain the effectiveness of such emission units and emission control devices may be sufficient reason for the Department to revoke or deny a permit.
The owner or operator of the permitted facility must maintain all required records on-site for a period of five years and make them available to representatives of the Department upon request. Department representatives must be granted access to any facility regulated by this Subpart, during normal operating hours, for the purpose of determining compliance with this and any other state and federal air pollution control requirements, regulations or law.

STATE ONLY APPLICABLE REQUIREMENTS The following conditions are state only enforceable.

Condition 91: Contaminant List Effective for entire length of PermitPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 68 DRAFT Applicable State Requirement:ECL 19-0301

Item 91.1: Emissions of the following contaminants are subject to contaminant specific requirements in this permit(emission limits, control requirements or compliance monitoring conditions).

CAS No: 000124-38-9 Name: CARBON DIOXIDE

CAS No: 000630-08-0 Name: CARBON MONOXIDE

CAS No: 007446-09-5 Name: SULFUR DIOXIDE

CAS No: 007664-41-7 Name: AMMONIA

CAS No: 007664-93-9 Name: SULFURIC ACID

CAS No: 0NY075-00-0 Name: PARTICULATES

CAS No: 0NY075-00-5 Name: PM-10

CAS No: 0NY075-02-5 Name: PM 2.5

CAS No: 0NY210-00-0 Name: OXIDES OF NITROGEN

CAS No: 0NY998-00-0 Name: VOC
Condition 92: Unavoidable noncompliance and violations Effective for entire length of Permit
Applicable State Requirement:6 NYCRR 201-1.4

Item 92.1: At the discretion of the commissioner a violation of any applicable emission standard for necessary scheduled equipment maintenance, start-up/shutdown conditions and malfunctions or upsets may be excused if such violations are unavoidable. The following actions and recordkeeping and reporting requirements must be adhered to in such circumstances.
(a) The facility owner and/or operator shall compile and maintain records of all equipment maintenance or start-up/shutdown activities when they can be expected to result in an exceedance of any applicable emission standard, and shall submit a report of such activities to the commissioner's representative when requested to do so in writing or when so required by aPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 69 DRAFT condition of a permit issued for the corresponding air contamination source except where conditions elsewhere in this permit which contain more stringent reporting and notification provisions for an applicable requirement, in which case they supercede those stated here. Such reports shall describe why the violation was unavoidable and shall include the time, frequency and duration of the maintenance and/or start-up/shutdown activities and the identification of air contaminants, and the estimated emission rates. If a facility owner and/or operator is subject to continuous stack monitoring and quarterly reporting requirements, he need not submit reports for equipment maintenance or start-up/shutdown for the facility to the commissioner's representative.
(b) In the event that emissions of air contaminants in excess of any emission standard in 6 NYCRR Chapter III Subchapter A occur due to a malfunction, the facility owner and/or operator shall report such malfunction by telephone to the commissioner's representative as soon as possible during normal working hours, but in any event not later than two working days after becoming aware that the malfunction occurred. Within 30 days thereafter, when requested in writing by the commissioner's representative, the facility owner and/or operator shall submit a written report to the commissioner's representative describing the malfunction, the corrective action taken, identification of air contaminants, and an estimate of the emission rates. These reporting requirements are superceded by conditions elsewhere in this permit which contain reporting and notification provisions for applicable requirements more stringent than those above.
(c) The Department may also require the owner and/or operator to include in reports described under (a) and (b) above an estimate of the maximum ground level concentration of each air contaminant emitted and the effect of such emissions depending on the deviation of the malfunction and the air contaminants emitted.
(d) In the event of maintenance, start-up/shutdown or malfunction conditions which result in emissions exceeding any applicable emission standard, the facility owner and/or operator shall take appropriate action to prevent emissions which will result in contravention of any applicable ambient air quality standard. Reasonably available control technology, as determined by the commissioner, shall be applied during any maintenance, start-up/shutdown or malfunction condition subject to this paragraph.
(e) In order to have a violation of a federal regulation (such as a new source performance standard or national emissions standard for hazardous air pollutants) excused, the specific federal regulation must provide for an affirmative defense during start-up, shutdowns, malfunctions or upsets.

Condition 93: Emission Unit Definition Effective for entire length of Permit
Applicable Stat e Requirement:6 NYCRR Subpart 201-5

Item 93.1: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00001 Emission Unit Description: ONE F CLASS COMBUSTION TURBINE RATED AT 1998 MMBTU/HR AT 51 DEGREES F (2234 MMBTU/HR AT -5 DEGREES F) ON NATURAL GAS AND 2145 MMBTU/HR AT -5 DEGREES F ON FUELPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 70 DRAFT OIL (,0.0015% SULFUR). THE TURBINE IS EQUIPPED WITH DRY LOW-NOX COMBUSTORS, STEAM INJECTION, SCR AND OXIDATION CATALYST EMISSION CONTROLS. THIS EMISSION UNIT ALSO CONTAINS A NATURAL GAS-FIRED DUCT BURNER RATED AT A MAXIMUM CAPACITY OF 500 MMBTU/HR.
Building(s): ACC01 GEN01 HRSG01

Item 93.2: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00002 Emission Unit Description: ONE CLASS-F COMBUSTION TURBINE RATED AT 1998 MMBTU/HR AT 51 DEGREES F (2234 MMBTU/HR AT -5 DEGREES F) ON NATURAL GAS AND 2145 MMBTU/HR AT -5 DEGREES F ON FUEL OIL (,0.0015% SULFUR). THE TURBINE IS EQUIPPED WITH DRY LOW-NOX COMBUSTORS, STEAM INJECTION, SCR AND OXIDATION CATALYST EMISSION CONTROLS. THIS EMISSION UNIT ALSO CONTAINS A NATURAL GAS-FIRED DUCT BURNER RATED AT A MAXIMUM CAPACITY OF 500 MMBTU/HR.
Building(s): ACC02 GEN02 HRSG02

Item 93.3: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00003 Emission Unit Description: ONE 73.5 MMBTU/HR AUXILIARY BOILER THAT WILL FIRE NATURAL GAS EXCLUSIVELY. THE BOILER HOURS WILL BE LIMITED TO 2000 HOURS PER YEAR. THE BOILER WILL OPERATE PRIMARILY TO ASSIST WITH STARTUPS AND SHUTDOWNS OF THE TURBINES.
Building(s): GEN01

Item 93.4: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00004 Emission Unit Description: Emergency Diesel Generator operating less than 500 hours per year.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 71 DRAFT Item 93.5: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00005 Emission Unit Description: Emergency Fire water Pump

Item 93.6: The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00006 Emission Unit Description: Two Fuel Gas Heaters

Condition 94: Visible Emissions Limited Effective for entire length of Permit
Applicable State Requirement:6 NYCRR 211.2

Item 94.1: Except as permitted by a specific part of this Subchapter and for open fires for which a restricted burning permit has been issued, no person shall cause or allow any air contamination source to emit any material having an opacity equal to or greater than 20 percent (six minute average) except for one continuous six-minute period per hour of not more than 57 percent opacity.
Condition 95: CO2 Budget Trading Program - Excess emission requirements Effective for entire length of Permit
Applicable State Requirement:6 NYCRR 242-1.5

Item 95.1: The owners and operators of a CO2 budget source that has excess emissions in any control period shall: (1) forfeit the CO2 allowances required for deduction under 6 NYCRR Part 242-6.5(d)(1), provided CO2 offset allowances may not be used to cover any part of such excess emissions; and (2) pay any fine, penalty, or assessment or comply with any other remedy imposed under 6 NYCRR Part 242-6.5(d)(2).
Condition 96: Compliance Demonstration Effective for entire length of Permit
Applicable State Requirement:6 NYCRR 242-1.5

Item 96.1: The Compliance Demonstration activity will be performed for the Facility.

Item 96.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owners and operators and, to the extent applicable, the CO2 authorized account representative of each CO2 budget source and each CO2 budget unit at the source shallPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 72 DRAFT comply with the monitoring requirements of Subpart 242-8. The emissions measurements recorded and reported in accordance with Subpart 242-8 of this Part shall be used to determine compliance by the unit with the following CO2 requirements:
(1) The owners and operators of each CO2 budget source and each CO2 budget unit at the source shall hold CO2 allowances available for compliance deductions under Section 242-6.5, as of the CO2 allowance transfer deadline, in the source's compliance account in an amount not less than the total CO2 emissions for the control period from all CO2 budget units at the source, as determined in accordance with Subparts 242-6 and 242-8.
(2) Each ton of CO2 emitted in excess of the CO2 budget emissions limitation shall constitute a separate violation of this Part and applicable state law.
(3) A CO2 budget unit shall be subject to the requirements specified in item 1 starting on the later, of January 1, 2009 or the date on which the unit commences operation.
(4) CO2 allowances shall be held in, deducted from, or transferred among CO2 Allowance Tracking System accounts in accordance with Subparts 242-5, 242-6, and 242-7, and Section 242-10.7.
(5) A CO2 allowance shall not be deducted, in order to comply with the requirements specified in item 1, for a control period that ends prior to the allocation year for which the CO2 allowance was allocated. A CO2 offset allowance shall not be deducted, in order to comply with the requirements under item 1, beyond the applicable percent limitations set out in 6NYCRR Part 242-6.5(a)(3).
(6) A CO2 allowance under the CO2 Budget Trading Program is a limited authorization by the Department or a participating state to emit one ton of CO2 in accordance with the CO2 Budget Trading Program. No provision of the CO2 Budget Trading Program, the CO2 budget permit application, or the CO2 budget permit or any provision of law shall be construed to limit the authority of the Department or a participating state to terminate or limit such authorization.
(7) A CO2 allowance under the CO2 Budget Trading Program does not constitute a property right.Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 73 DRAFT Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).
Condition 97: Compliance Demonstration Effective for entire length of Permit
Applicable State Requirement:6 NYCRR 242-1.5

Item 97.1: The Compliance Demonstration activity will be performed for the Facility.

Item 97.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owners and operators of the CO2 budget source and each CO2 budget unit at the source shall keep on site at the source each of the following documents for a period of 10 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 10 years, in writing by the department.
(i) The account certificate of representation for the CO2 authorized account representative for the source and each CO2 budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with 6 NYCRR Part 242-2.4, provided that the certificate and documents shall be retained on site at the source beyond such 10-year period until such documents are superseded because of the submission of a new account certificate of representation.
(ii) All emissions monitoring information, in accordance with Subpart 242-8 and 40 CFR 75.57.
(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CO2 Budget Trading Program.
(iv) Copies of all documents used to complete a CO2 budget permit application and any other submission under the CO2 Budget Trading Program or to demonstrate compliance with the requirements of the CO2 Budget Trading Program.
The CO2 authorized account representative of a CO2 budget source and each CO2 budget unit at the source shall submit the reports and compliance certifications required underPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 74 DRAFT the CO2 Budget Trading Program, including those under Subpart 242-4.
Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

** ** Emission Unit Level ****
Condition 98: Emission Point Definition By Emission Unit Effective for entire length of Permit
Applicable Stat e Requirement:6 NYCRR Subpart 201-5

Item 98.1: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00001

Emission Point: EP001 Height (ft.): 275 Diameter (in.): 228 NYTMN (km.): 4584.693 NYTME (km.): 546.98

Item 98.2: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00002

Emission Point: EP002 Height (ft.): 275 Diameter (in.): 228 NYTMN (km.): 4584.655 NYTME (km.): 546.991

Item 98.3: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00003

Emission Point: EP003 Height (ft.): 275 Diameter (in.): 228 NYTMN (km.): 4584.655 NYTME (km.): 546.991

Item 98.4: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00004

Emission Point: EP004 Height (ft.): 50 Diameter (in.): 18Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 75 DRAFT NYTMN (km.): 4584.651 NYTME (km.): 547.129

Item 98.5: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00005

Emission Point: EP006 Height (ft.): 50 Diameter (in.): 6 NYTMN (km.): 4584.669 NYTME (km.): 546.815

Item 98.6: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00006

Emission Point: EP005 Height (ft.): 125 Diameter (in.): 24 NYTMN (km.): 4584.58 NYTME (km.): 546.958
Condition 99: Process Definition By Emission Unit Effective for entire length of Permit
Applicable Stat e Requirement:6 NYCRR Subpart 201-5

Item 99.1: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00001 Process: P1A Source Classification Code: 2-01-002-01 Process Description: REPRESENTS NATURAL GAS FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,234 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO). DRY LOW-NOX COMBUSTION TECHNOLOGY, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,234 MMBtu/hr AT -5 DEGREES F) AND THE QUANTITY PER YEAR THROUGHPUT REPRESENTS THE TURBINE AT THE FIRING RATE AT THE ANNUAL AVERAGE AMBIENT TEMPERATURE OF 51 DEGREES F (1,998 MMBtu/hr). NATURAL GAS HIGHER HEATING VALUE IS ASSUMED TO BE 1,048 BTU/CUBIC FOOT.

Emission Source/Control: CT001 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DLN01 - ControlPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 76 DRAFT Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY01 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR01 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Item 99.2: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00001 Process: P2A Source Classification Code: 2-01-002-01 Process Description: REPRESENTS COMBINED NATURAL GAS FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,234 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO) AND NATURAL GAS FIRING IN THE DUCT BURNER, WHICH IS RATED AT 500 mmBTU/hr. DRY LOW-NOX COMBUSTION TECHNOLOGY, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,234 MMBtu/hr AT -5 DEGREES F) OF THE TURBINE PLUS THE DUCT BURNER AT RATED CAPACITY (500 mmBTU/hr) AND THE QUANTITY PER YEAR THROUGHPUT REPRESENTS 8,760 HOURS OF NATURAL GAS FIRING IN THE TURBINE AT THE ANNUAL AVERAGE AMBIENT TEMPERATURE OF 51 DEGREES F (1,998 MMBtu/hr). NATURAL GAS HIGHER HEATING VALUE IS ASSUMED TO BE 1,048 BTU/CUBIC FOOT.

Emission Source/Control: CT001 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DB001 - Combustion Design Capacity: 500 million Btu per hour

Emission Source/Control: DLN01 - Control Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY01 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR01 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Item 99.3: This permit authorizes the following regulated processes for the cited Emission Unit:Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 77 DRAFT Emission Unit: U-00001 Process: P3A Source Classification Code: 2-01-001-01 Process Description: REPRESENTS FUEL OIL FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,145 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO). DRY LOW-NOX COMBUSTION TECHNOLOGY, STEAM OR WATER INJECTION, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,145 MMBtu/hr AT -5 DEGREES F) AND THE QUANTITY PER YEAR THROUGHPUT REPRESENTS 720 HOURS OF FUEL OIL FIRING AT THE FIRING RATE AT -5 DEGREES F AMBIENT TEMPERATURE. FUEL OIL HIGHER HEATING VALUE IS ASSUMED TO BE 139,728 BTU/GALLON.

Emission Source/Control: CT001 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DLN01 - Control Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY01 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR01 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Emission Source/Control: ST101 - Control Control Type: STEAM OR WATER INJECTION

Item 99.4: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00002 Process: P01 Source Classification Code: 2-01-002-01 Process Description: REPRESENTS NATURAL GAS FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,234 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO). DRY LOW-NOX COMBUSTION TECHNOLOGY, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,234 MMBtu/hr AT -5 DEGREES F) ANDPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 78 DRAFT THE QUANTITY PER YEAR THROUGHPUT REPRESENTS THE TURBINE AT THE FIRING RATE AT THE ANNUAL AVERAGE AMBIENT TEMPERATURE OF 51 DEGREES F (1,998 MMBtu/hr). NATURAL GAS HIGHER HEATING VALUE IS ASSUMED TO BE 1,048 BTU/CUBIC FOOT.

Emission Source/Control: CT002 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DLN02 - Control Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY02 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR02 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Item 99.5: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00002 Process: P02 Source Classification Code: 2-01-002-01 Process Description: REPRESENTS COMBINED NATURAL GAS FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,234 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO) AND NATURAL GAS FIRING IN THE DUCT BURNER, WHICH IS RATED AT 500 mmBTU/hr. DRY LOW-NOX COMBUSTION TECHNOLOGY, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,234 MMBtu/hr AT -5 DEGREES F) OF THE TURBINE PLUS THE DUCT BURNER AT RATED CAPACITY (500 mmBTU/hr) AND THE QUANTITY PER YEAR THROUGHPUT REPRESENTS 8,760 HOURS OF NATURAL GAS FIRING IN THE TURBINE AT THE ANNUAL AVERAGE AMBIENT TEMPERATURE OF 51 DEGREES F (1,998 MMBtu/hr). NATURAL GAS HIGHER HEATING VALUE IS ASSUMED TO BE 1,048 BTU/CUBIC FOOT.

Emission Source/Control: CT002 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DB002 - Combustion Design Capacity: 500 million Btu per hourPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 79 DRAFT Emission Source/Control: DLN02 - Control Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY02 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR02 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Item 99.6: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00002 Process: P03 Source Classification Code: 2-01-001-01 Process Description: REPRESENTS FUEL OIL FIRING IN THE CLASS-F COMBUSTION TURBINE, WHICH IS RATED AT 2,145 mmBTU/hr AT -5 DEGREES F (MAXIMUM HEAT INPUT SCENARIO). DRY LOW-NOX COMBUSTION TECHNOLOGY, STEAM OR WATER INJECTION, SELECTIVE CATALYTIC REDUCTION (SCR) AND OXIDATION CATALYST WILL BE USED TO MINIMIZE EMISSIONS OF NOX, CO, AND VOC. THE QUANTITY PER HOUR THROUGHPUT LISTED BELOW REPRESENTS THE MAXIMUM FIRING RATE (2,145 MMBtu/hr AT -5 DEGREES F) AND THE QUANTITY PER YEAR THROUGHPUT REPRESENTS 720 HOURS OF FUEL OIL FIRING AT THE FIRING RATE AT -5 DEGREES F AMBIENT TEMPERATURE. FUEL OIL HIGHER HEATING VALUE IS ASSUMED TO BE 139,728 BTU/GALLON.

Emission Source/Control: CT002 - Combustion Design Capacity: 2,234 million Btu per hour

Emission Source/Control: DLN02 - Control Control Type: DRY LOW NOx BURNER

Emission Source/Control: OXY02 - Control Control Type: CATALYTIC OXIDATION

Emission Source/Control: SCR02 - Control Control Type: SELECTIVE CATALYTIC REDUCTION (SCR)

Emission Source/Control: ST102 - Control Control Type: STEAM OR WATER INJECTION

Item 99.7: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00003 Process: P3B Source Classification Code: 1-02-006-02Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 80 DRAFT Process Description: REPRESENTS NATURAL GAS FIRING IN THE AUXILIARY BOILER, WHICH IS RATED AT 73.5 MMBTU/HR. TOTAL NATURAL GAS USAGE WILL NOT EXCEED 2,000 FULL LOAD BOILER HOURS PER YEAR. NATURAL GAS HIGHER HEATING VALUE IS ASSUMED TO BE 1,048 BTU/CUBIC FOOT

Emission Source/Control: AUX01 - Combustion Design Capacity: 73.5 million Btu per hour

Emission Source/Control: FGR01 - Control Control Type: FLUE GAS RECIRCULATION

Emission Source/Control: LNB01 - Control Control Type: LOW NOx BURNER

Item 99.8: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00004 Process: P04 Process Description: Emergency generator firing diesel fuel

Emission Source/Control: EG001 - Combustion Design Capacity: 15.43 million BTUs per hour

Item 99.9: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00005 Process: P05 Process Description: Fire pump firing diesel fuel.

Emission Source/Control: FP001 - Combustion Design Capacity: 2.27 million Btu per hour

Item 99.10: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00006 Process: P06 Process Description: gas heater operating on natural gas

Emission Source/Control: FGH01 - Combustion Design Capacity: 5.02 million Btu per hour

Emission Source/Control: FHG02 - Combustion Design Capacity: 5.02 million Btu per hour
Condition 100: Compliance Demonstration Effective for entire length of PermitPermit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 81 DRAFT Applicable State Requirement:6 NYCRR 251.3 (a)

Item 100.1: The Compliance Demonstration activity will be performed for the facility: The Compliance Demonstration applies to:

Emission Unit: U-00001 Emission Point: EP001

Emission Unit: U-00002 Emission Point: EP002
Regulated Contaminant(s): CAS No: 000124-38-9 CARBON DIOXIDE

Item 100.2: Compliance Demonstration shall include the following monitoring:
Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Owners or operators of boilers that are permitted to fire greater than 70 percent fossil fuel, combined cycle combustion turbines, or stationary internal combustion engines that fire only gaseous fuel, except for those emission sources directly attached to a gasifier, are required to meet an emission rate of 925 pounds of CO2 per MW hour gross electrical output (output-based limit). These emission limits are measured on a 12-month rolling average basis, calculated by dividing the annual total of CO2 emissions over the relevant 12-month period by the annual total (gross) MW generated (output-based limit). The owner or operator must maintain all records associated with these requirements on site or at a location acceptable to the Department for a minimum of five years.

Manufacturer Name/Model Number: CO2 Continous Monitor Parameter Monitored: CARBON DIOXIDE Upper Permit Limit: 925 pounds per megawatt hour Monitoring Frequency: CONTINUOUS Averaging Method: 12 MONTH AVERAGE - ROLLED MONTHLY Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 3-3356-00136/00001 Facility DEC ID: 3335600136

Air Pollution Control Permit Conditions Page 82 DRAFT

## Appendix 3B
CPV Valley Air Quality Permitting Addendum

# CPV Valley Energy Center

630 MW Combined Cycle Facility PSD and Part 201 Air Permit Application

Supplement

Prepared for: CPV Valley, LLC Prepared by: TRC Environmental Corporation Wannalancit Mills 650 Suffolk Street Lowell, Massachusetts 01854

January 2012

### TABLE OF CONTENTS

Section Page

1. 7 Introduction

................................ ................................ ................................ .............. 1

- 11

3.1 2 Proposed Equations for PM

- 2.5 Emissions Tracking

................................ .............. 3

- 24

4. 10 Greenhouse Gas BACT Analysis

................................ ................................ .............. 4

- 32 4.1 1 BACT/LAER Update

................................ ................................ ................................ 4

- 39

5.7 Supplemental Modeling Analyses for New NAAQS and PSD Increments

.............. 5
- 26

LIST OF APPENDICES Appendix A 1 : NYSDEC Supplemental Application Forms

A1.1 PM

- 2.5 Emissions Tracking A1.2 T he Anciliary Equipment Appendix G 1 : Air Quality Modeling Protocol (Supplements 1 and 2)

G1.1 NYSDEC Comments on the Protocol Supplements G1.2 Responses to NYSDEC Comments Appendix H1: Mult i

- Source NO x 

### Emission Inventory

LIST OF TABLES
Table 4

- 1: Summary of Proposed BACT/LAER

– Combustion Turbine/Duct Burner Table 4

- 2: Summary of Proposed BACT/LAER

– Auxiliary Boiler Table 4

- 3 Summary of Proposed BACT/LAER

– Fuel Gas Heater Table 4

- 4 Summary of Proposed BACT/LAER

– Emergency Diesel Fire Pump Table 4

- 5 Summary of Proposed BACT/LAER

– Emergency Diesel Generator Table 5
- 14 Multi

- Source NO x 

### Emission Invent ory Table 5
- 15 Maximum Project 1

- Hour SO 2 

### Impacts Table 5

- 1 6 Maximum Project 1

- Hour N O x 

### Impacts Table 5

- 1 7 Maximum Project 24

- Hour PM

- 2.5 Impacts Table 5

- 1 8 Maximum Project PM

- 2.5 PSD Increment Impacts Table 5

- 1 9 Cumulative 1

- Hour Average NO 2 

### Modeling Results for the Initial Receptor Table 5

- 20 Cumulative 1

- Hour Average NO 2 

### Modeling Results for the Refined Receptor GridJanuary 2012 Supplement 1

- 11 CPV Valley Energy Center 

### CPV VALLEY, LLC CPV VALLEY ENERGY CENTER PSD AND PART 201 AIR PERMIT APPLICATION SUPPLEMENT INTRODUCTION

1.7 Introduction

This document is a Supplement to the November 2008 “PSD and P art 201 A ir P ermit Application ” for a nominal 630

- megawatt (MW) combined cycle electric generating facility known as the CPV Valley Energy Center (the Project or the Facility) located in the Town of Wawayanda, Orange County, New York. The Supplement is being submitted to the New York S tate Department of Environmental Conservation (NYSDEC) to satisfy the latest regulatory requirements for Prevention of Significant Deterioration (PSD) and Par t 201 air permits under Title 6 of the New York Code s, Rules and Regulations (6 NYCRR).

As a stan d

- alone document, t his Supplement is comprised of the Sections and Appendices that are listed below. However, the Sections and Appendices of this Supplement are also numbered for possible insertion into the corresponding Sections and Appendices of the Novembe r 2008 Applicati o n
.

Section 1.7 : Introduction Section 3.12 : Proposed Equations for PM

- 2.5 Emissions Tracking Section 4.10 : Greenhouse Gas BACT Analysis Section 4.11 : BACT/LAER Update Section 5.7 : Supplemental Modeling Analyses for New NAAQS and PSD Increments
Appendix A1: NYSDEC Supplemental Application Forms

A1.1 PM

- 2.5 Emissions Tracking A1.2 T he Anciliary Equipment Appendix G1: Air Quality Modeling Protocol (Supplements 1 and 2)

G1.1 NYSDEC Comments on the Protocol Supplements G1.2 Responses to NYSDEC Comments Appendix H1: Multi

- Source NO x 

### Emission InventoryJanuary 2012 Supplement 3

- 24 CPV Valley Energy Center 

### CPV VALLEY, LLC CPV VALLEY ENERGY CE NTER PROPOSED EQUATIONS F OR TRACKING PM

- 2.5 EMISSIONS

3.12 Proposed Equations for Tracking PM

- 2.5 Emission s
Monthly facility

- wide emissions of PM

- 2.5 will be calculated as the sum of monthly PM

- 2.5 emissions from indi vidual emission units or source groups . Emissions will be calculated based

on heat input (or, equivalently, from fuel use ) and emission factors as described below. Annual facility

- wide emissions will then be determined at the end of each month on a rolli ng 12

- month basis in order to demonstrate compliance with the 95 ton per year cap.

The source groups included in the emissions cap along with their associated source indices and PM

- 2.5 emission factors, as used in subsequent equations , are listed in the f ollowing table . The table also lists , for each source group , the parameter that will be monitored and the monitoring frequency. Continuous monitoring of heat input to the combustion turbines , auxiliary boiler and gas heater(s) will be provided by a digit al data acquisition system (DAS).

Emission Units or Category Operating

Load Fuel Source

Group (i) Emission

Factor (lb/mmBtu) Parameter

Monitored Monitoring

Frequency Combustion Turbines Only (no duct firing) ≥ 80% Gas 1 0.0056 Heat Input Continuous (DAS) Combustion Turbines Only (no duct firing) < 80% Gas 2 0.0073 Heat Input Continuous (DAS) Combustion Turbines + Duct Firing ≥ 80% Gas 3 0.0064 Heat Input Continuous (DAS) Combustion Turbines Only ≥ 85% Oil 4 0.00247 Heat Input Continuous (DAS) Combusti on Turbines Only < 85% Oil 5 0.0368 Heat Input Continuous (DAS) Auxiliary Boiler All Gas 6 0.0063 Heat Input Continuous (DAS) Gas Heater(s) All Gas 7 0.0076 Heat Input Continuous (DAS) Emergency Diesel Generator All Oil 8 0.0091 Fuel Use Weekly Emerg ency Fire Pump All Oil 9 0.0429 Fuel Use WeeklyJanuary 2012 Supplement 3

- 25 CPV Valley Energy Center



### The proposed emission factors are based on information presented in the air permit application. For the combustion turbines, the proposed emission factors represent the maximum PM

- 2.5 emission factor over the specified normal operating loads for the associated fuel and category

. For each source group (i) , the PM

- 2.5 emissions in tons (Q ij 

### ) for month j will be calculated as follows: Q ij 

### = EF i 

### x H ij 

### / 2000, where:

 EF i 

### = PM

- 2.5 emission factor (lb/mmBtu) fo r source group i

 H i

j 

### = monthly heat input (mmBtu) for source group i in month j

In cases where fuel use (gallons of oil or standard cubic feet of gas ) for a source group is monitored directly rather than heat input , the equivalent heat input will be dete rmined by multiplying the monthly fuel usage for the source group by the corresponding fuel heating value ( mm Btu/gallon or mm Btu/scf) , using the higher heating value (HHV) basis for the fuel

.

The total facility PM

- 2.5 emissions in month j (Q j 

### ) will be cal culated by summing over all source groups ( i = 1 to 9 ) as follows : Q j 

### = ∑ EF i 

### x H ij 

### / 2000 = ∑ Q ij 

### .

T he facility

- wide PM

- 2.5 emissions over the past 12 months (Q ann 

### ) ending in month j w i ll be determined by summing the facility

- wide PM

- 2.5 emissions for the most recent 12 months (k = 0 to 11) as follows:

Q ann 

### = ∑ Q

j

- k



### After each month, compliance will be demonstrated with the proposed 95 ton/year PM

- 2.5 emission limit by showing that Q ann 

### < 95.
As part of assuring compliance with the proposed rolling 12

- month PM

- 2.5 emission limit of 95 tons per year, CPV Valley, LLC propos es to conduct periodic testing to demonstrate that emissions from the combustion turbines comply with the lb/mmBtu emission factors for PM

2.5. CPV Valley, LLC proposes to test the combustion turbines once per year for the first two years of operation and once per 5
- year permit term thereafter.

The pollutant emission factors will be based on permit limits for each operating condition, but stack test based factors may be used if future stack testing indicates a lower lb/MMBtu than the permit limits. In th is case, the DAHS system will be updated to include these new stack test results.January 2012 Supplement 4

- 32 CPV Valley Energy Center 

### CPV VALLEY, LLC CPV VALLEY ENERGY CENTER GREENHOUSE GAS BACT ANALYSIS

4.10 Greenhouse Gas BACT Analysis

4.10.1 Overview


### On June 3, 2010, EPA issued a final rule that “tailors” the applicability provisions of PSD for greenhouse gas (GHG) emissions. Under the tailor ing rule, application of PSD to GHGs will be implemented in multiple steps. The first step began on January 2, 2011 and ended on June 30, 2011. Under step 1, PSD applied to GHG emissions from a new source only if the source is already subject to PSD due to emissions of criteria pollutants and the potential GHG emissions from the project would be equal to or greater than 100,000 tons/year on a CO2 e 

### basis. Projects which are not subject to PSD review for criteria pollutants and that receive permits and

com mence construction prior to July 1, 2011 will not be subject to PSD for GHGs. The second step start ed on July 1, 2011 and require s a new source (facility) that is solely considered a “major” source due to GHG emissions to obtain a PSD permit.
For PSD p urposes, GHGs are considered a single air pollutant defined as the aggregate group of the following six gases:

 Carbon dioxide (CO 2 

### )

 Methane (CH 4 

### )

 Nitrous oxide (N 2 

### O)

 Hydrofluorocarbons (HFCs)

 Perfluorocarbons (PFCs)

 Sulfur hexafluoride (SF 6 

### )

B ecause pote ntial GHG emissions from the Project will be greater than 100,000 tons/year , the proposed facility is subject to PSD permitting requirements for GHG emissions.

4.10.1.1 Best Available Control Technology Analysis Guidance
A control technology analysis has been per formed for the planned CPV Valley Energy Center facility based upon guidance presented in the draft USEPA Guidance Document entitled New Source Review Workshop Manual , (October, 1990) and the USEPA’s PSD and Title V Permitting Guidance for Greenhouse Gases document ( March , 20 1 1 )

.

4.10.1.2 Applicability of Control Technology Requirements
Control technology requirements are generally based upon the potential emissions from the new or modified source and the attainment status of the area in which the source is to b e located.January 2012 Supplement 4

- 33 CPV Valley Energy Center



### Pollutants subject to PSD review are subject to a BACT analysis. As previously stated, the proposed CPV Valley Energy Center is subject to BACT for GHG emissions.

4.10.2 Approach Used in BACT Analysis


### BACT is defined as the optimum level of control applied to pollutant emissions based upon consideration of energy, economic and environmental factors. The BACT analyses may include reductions achieved through the application of processes, systems, and techniques for the control of each air pollutant. EPA has placed potentially applicable control alternatives identified and evaluated in the BACT analysis into the following three categories:

(1) Inherently lower

- emitting processes/practices/designs, (2) Add

- on controls, and; (3) Combinations of (1) and (2).

4.10.2.1 Inhere ntly lower

- emitting processes/practices/designs

Lower

- polluting processes (including design considerations) should be considered based on demonstrations made on the basis of manufacturing identical or similar products from identical or similar raw materi als or fuels.

4.10.2.2 Change in raw materials
This emissions limiting technique typically applies to industrial processes that use chemicals, such as solvents, where substitution with a lower emitting chemical may be technically feasible. In the case of the proposed CPV Valley Energy Center Project, the “raw material” is the fuel combusted for the generation of electricity. The Project propose s to primarily use natural gas, which is the fuel with the lowest pollutant emissions. Ultra low sulfur distillate o il will be used as a backup fuel with limited hours of operation (720 hours/year/turbine). The duct burners will exclusively fire natural gas.

4.10.2.3 Process Modifications
Process modifications may be implemented if a change in the process methods or conditio ns can result in lower emissions. In the case of the Project, the “process” is the combustion turbines firing natural gas. The current “F” class combustion turbine technology in combined cycle mode is among the most efficient fossil fuel power plant desi gns currently available



### . Therefore, process modifications beyond what is already proposed are not technologically feasible.January 2012 Supplement 4

- 34 CPV Valley Energy Center



### 4.10.2.4 Technically Feasible Add

- on Control Options
The first step is identification of available technically feasible control technolo gy options, including consideration of transferable and innovative control measures that may not have previously been applied to the source type under analysis. The minimum requirement for a BACT proposal is an option that meets federal NSPS limits or oth er minimum state or local requirements that would prevail in the absence of BACT decision

- making, such as RACT or NYSDEC emission standards. After elimination of technically infeasible control technologies, the remaining options are ranked by control effe ctiveness.

If there is only a single feasible option, or if the applicant is proposing the most stringent alternative, then no further analysis is required. If two or more technically feasible options are identified, the next three steps are applied to i dentify and compare the economic, energy, and environmental impacts of the options. Technical considerations and site

- specific sensitive issues will often play a role in BACT determinations. Generally, if the most stringent technology is rejected as BACT , the next most stringent technology is evaluated, and so on.

In order to identify options for each class of equipment, a search of the USEPA’s RACT/BACT/LAER Clearinghouse (RBLC) has been performed. Individual searches have been performed for each pollu tant (subject to BACT/LAER) emitted from each emissions unit. The most recently issued permits for combustion turbines in New York and others not yet on the RBLC were also analyzed.

4.10.2.5 Economic (Cost

- Effectiveness) Analysis
This analysis consists of an es timation of costs and the calculation of the cost

- effectiveness of each control technology, on a dollar per ton of pollution removed basis. Annual emissions of an option are subtracted from base case emissions to calculate tons of pollutant controlled per year. The base case may be uncontrolled emissions or the maximum emission rate allowable without BACT considerations that would generally correspond to an NSPS or RACT level. Annual costs, in dollars per year, are calculated by adding annual operation a nd maintenance costs to the annualized capital cost of an option. Cost

- effectiveness ($/ton) of an option is simply the equivalent annual cost ($/yr) divided by the annual reduction in emissions (ton/yr).

It should be noted that no economic analysis is r equired if either the most effective option is proposed or if there are no technically feasible control options.

4.10.2.6 Energy Impact Analysis
Two forms of energy impacts that may be associated with a control option can normally be quantified. Increases in energy consumption resulting from increased heat rate may be shownJanuary 2012 Supplement 4

- 35 CPV Valley Energy Center



### as incremental Btu's or fuel consumed per year. Also, the installation of a control option may reduce the output and/or reliability of the proposed equipment. This reduction would also

re sult in a loss of revenue from reduced (electrical output) power sales.

4.10.2.7 Environmental Impact Analysis
The primary focus of the environmental impact analysis is the reduction in ambient concentrations of the pollutant being emitted. Increases or decreas es in emissions of other criteria or non

- criteria pollutants may occur with some technologies, and should also be identified. Non

- air related impacts, such as solid waste disposal and increased water consumption/ treatment, may be an issue for some projec ts and control options.

4.10.3 BACT Analysis for Greenhouse Gas (GHG) Emissions



### The main sources of GHG emissions for the CPV Valley Energy Center project are the combustion turbine s, duct burner s , auxiliary boiler and fuel gas heater s . GHG emissions are also generated from the operation of the diesel engines, which are intended for limited operation (black start and fire protection)

.

4.10.3.1 Review of GHG BACT Database

4.10.3.1.1 Combined Cycle Combustion Turbines and Duct Burners

A search of the RBLC for “carbon dioxide ” did not yield any results for combined cycle combustion turbines with or without duct firing. CPV is aware of two similar projects , the Calpine Russell City Energy Center in Hayward, California, and the Cricket Valley Energy Center in Dover, New York , w

hose air permits contain CO 2 

### e limit s for each facility’s natural gas fired combined cycle turbines , and e fficiency limits rang ing from 7,605 to 7,730 Btu/kW

- hr ( operating at 100% load, ISO conditions and with out duct firing)

.

4.10.3.1.2 Auxiliary Boiler

A searc h of the RBLC for “carbon dioxide” did not yield any results for auxiliary boilers similar in size to that proposed for the CPV Valley Energy Center P roject.

4.10.3.1.3 Fuel Gas Heaters A search of the RBLC for “carbon dioxide” did not yield any results for natura l gas fired heaters similar to that proposed for the CPV V alley Energy Center P roject.January 2012 Supplement 4

- 36 CPV Valley Energy Center



### 4.10.3.1.4 Emergency Diesel Engines A search of the RBLC for “carbon dioxide” did not yield any results for emergency diesel engines similar to those proposed for the CPV Valle y Energy Center Project.

4.10.3.2 Identification of GHG Control Options and Technical Feasibility

4.10.3.2.1 Combined Cycle Combustion Turbines and Duct Burners
The following control technologies for GHG were evaluated: Carbon Capture and Sequestration (CCS) and Good Op eration and Maintenance for Thermal Efficiency

. Carbon Capture and Sequestration (CCS)

– The second of the five steps in a top

- down BACT analysis is to eliminate technologically infeasible control technologies. A control is feasible if it is both “availa ble” and “applicable”. A technology is considered “available” if the source owner may obtain it through commercial channels, or it is otherwise available within the common sense meaning of the term. Technologies that have not yet been applied to (or perm itted for) full scale operations should not be considered as available. An available technology is “applicable” if it can be reasonably installed and operated on the source type under consideration. Innovative controls that have not been demonstrated on any source type similar to the proposed source need not be considered in the BACT analysis.

EPA has classified CCS as an add

- on pollution control technology that is “available” for large CO 2 

### - emitting facilities including fossil fuel fired power plants. Carbon sequestration is a geo

engineering technique used to remove the CO 2 

### from an exhaust gas stream and store it permanently in underground reservoirs (typically depleted oil or gas reservoirs) or other geological features. The technology captures CO 2 

### before it enters the atmosphere, compresses the CO 2 

### to a near liquid state, and transports it via pipeline to a site where it is injected deep underground. The deep geological formations that receive and hold CO 2 

### must be far below fresh water aquifers and below an impermeable cap rock or seal so they cannot contaminate groundwater or escape into the atmosphere. Ideal geological formations for sequestration include depleted oil and gas fields and deep ocean masses. The vicinity surrounding the proposed CP V Valley Energy Center does not contain saline aquifers, depleted oil or gas reservoirs, or deep coal beds and therefore is not suitable for the injecti o n of CO 2 

### underground

. Alternative sequestration techniques include converting CO 2 

### to baking soda or algae based carbon capture. The long term storage of CO 2 

### is a relatively new concept and has mostly been demonstrated on a pilot

- scale. In addition, capturing, scrubbing and compressing CO 2 

### requires much energy and would increase the fuel needs of the pl ant. D ue to the narrow margins that often exist in the electrical generating business, an energy

- intensive CO 2 

### removal process canJanuary 2012 Supplement 4

- 37 CPV Valley Energy Center



### significantly affect the economics of a power plant and it would have a significant impact on the economic viability of the planned CPV Valley Energy Center Project

.

P ower plants similar in size to the proposed CPV Valley Energy Center may require a significantly larger site area to accommodate the additional process facilities associated with CO 2 

### capture. Such facilities c ould include CO 2 

### compressors, scrubbers, oxygen production plants or other carbon capture equipment. Depending upon the capture technology employed, the site area for the capture equipment may approach the size of the site area of the power generating pla nt itself. 1



### W hile current technologies could be used to capture CO 2 

### from new fossil fuel fired power plants, they have not been demonstrated at the scale necessary to establish confidence for power plant application. 2 

### Further, the technology has not be en demonstrated as suitable for the proposed site location. Therefore, CCS is not considered to be technically feasible for the project.
Thermal Efficiency

– Contrary to other pollutants, CO 2 

### is not the byproduct of incomplete combustion and contaminants in the fuel supply. It is the essential product of the chemical reaction between fuel and oxygen and inherent in any fossil

- fuel combustion technology. Therefore, the only way to reduce the amount of CO 2 

### generated is to minimize the amount of fuel combu stion required to produce the desired amount of electricity. This is achieved by operating the units efficiently

. Maintaining a high combustion efficiency of a power generation facility is a key economic factor in the viability of a power generation faci lity. Therefore, there is already an inherent and significant economic incentive to maintain good combustion efficiency, which reduces the overall combustion of fuel. In addition, n atural gas generates a lower amount of CO 2 

### when combusted in comparison t o other fossil fuels. The combustion turbine s at the CPV Valley Energy Center will operate primarily on natural gas , which is the fuel with the lowest GHG emissions. Therefore, the combination of the high thermal efficiency of the facility and its primar y use of natural gas constitute a control technology for GHG emissions.

4.10.3.2.2 Auxiliary Boiler
The only feasible option for reducing GHG emissions from the auxiliary boiler is to use natural gas, which is the fuel with the lowest pollutant emissions

. The pr oposed auxiliary boiler will utilize natural gas only.

1 P. Parfomak, “Community Acceptance of Carbon Capture and Sequestration Infrastructure: Siting Challenges” (July 29, 2008). 2 See Report of the Interagency Task Force on Carbon Capture and Storage, p.50 ( http://www.epa.gov/climate change/p olicy/ccs_task_force.html).January 2012 Supplement 4

- 38 CPV Valley Energy Center



### 4.10.3.2.3 Fuel Gas Heaters
The only feasible option for reducing GHG emissions from the fuel gas heater s is to use natural gas, which is the fuel with the lowest pollutant emissions. The CPV Valley Energy Center Project’s fuel gas heater s will utilize natural gas only.

4.10.3.2.4 Emergency Diesel Engines
The only feasible option for reducing GHG emissions from the emergency diesel generator and fire pump is to limit the hours of operation to 5 00 hours/year.

4.10.3.3 Determ ination of BACT for GHG

4.10.3.3.1 

### Combined Cycle Combustion Turbines and Duct Burners
To minimize GHG emissions, CPV Valley Energy Center proposes to operate the combustion turbines in combined cycle mode with natural gas as the primary fuel and proposes a heat rate limit of 7,605 Btu/kW

- hr (57.4% efficiency (LHV) ) at full load ISO conditions with out duct firing (based on net output)

. Compliance with the heat rate limit will be determined through stack testing prior to commercial operation

.

Total annual CO 2 

### e em issions from the two combined cycle units will be limited to 2, 183 , 223 tons/year (or 1,0 9 1, 611.5 tons/year/unit)

. This limit reflects full load 8,760 hours of operation per year per turbine with the maximum amount of duct firing and backup fuel oil firing proposed. Compliance with the annual limit will be demonstrated through the use of a CO 2 

### CEM along with fuel usage and emission factors for methane and nitrous oxide.

4.10.3.3.2 Auxiliary Boiler
The Project proposes to exclusively use natural gas as the fuel and limit its operation to 2 , 0 00 hours per year.

4.10.3.3.3 Fuel Gas Heaters
The Project proposes to exclusively use natural gas as the f uel for the fuel gas heaters

.

4.10.3.3.4 Emergency Diesel Engines
The Project proposes to limit the operating hours of each engine to 500 per year.January 2012 Supplement 4

- 39 CPV Valley Energy Center 

### CPV VALLEY, LLC CPV VALLEY ENERGY CENTER BACT/LAER UPDATE

4.11 BACT/LAER Analysis Update



### 4.11.1 Overview

This section of the Supplement updates Section 4.0 of the November 2008 “PSD and Part 201 Air Permit Application” for the proposed CPV Valley Energy Center. As such, it presents updated Lowest Achievable Emission Rate ( LAER ) and Best Available Control Technology ( BACT ) determinations for the control of the nitrogen oxides ( NO x 

### ) , volatile organic compound s ( VOC ) , carbon monoxide ( CO ) , particulate matter/particula te matter less than or equal to 10 microns in diameter ( PM/ PM

- 10 ) , sulfur dioxide ( SO 2 

### ) and sulfuric acid ( H 2 

### SO 4 

### ) emissions from the Project’s combined cycle combustion turbines and duct burners, auxiliary boiler, fuel gas heaters and emergency diesel engi nes. For each pollutant and type of equipment, the U.S. Environmental Protection Agency’s ( USEPA’s ) RACT/BACT/LAER Clearinghouse (RBLC) was searched and recently issued permits were reviewed to determine if any new projects have been permitted with lower emission levels since November 2008

.

The results of th is re search ha ve confirmed, with one exception, the BACT/LAER emission rate determinations that were made in November 2008 . The one exception pertains to the emergency generator. Its NO x 

### emission rat e needs to be re duced slightly from 4.97 to 4.78 grams per horsepower

- hour (g/hp

- hr), to meet the present ly applicable New Source Performance Standard (NSPS) for such equipment

.



### 4.11.2 Nitrogen Oxides

4.11.2.1 Review of NO x 

### RBLC and Permit Database s

4.11.2.1.1 Combined Cycle Combustion Turbines and Duct Burners

A recent search of the RBLC and available permits for natural gas fired combined cycle combustion turbine projects did not identify any new permits with NO x 

### emission limits less than the 2.0 parts per m illion ( ppm ) proposed for the Project.

In the event that natural gas is unavailable, the Project will burn ultra

- low sulfur distillate oil ( ULSD ) as a backup fuel. Operation on ULSD will be limited to a fuel consumption amount equivalent to 30 days per year or 720 hours per year of full load operation for each turbine. No new projects with lower emission limits than the oil firing NO x 

### limit of 6.0 ppm proposed for the project were identified. As stated in the original submittal, there are four project s with NO xJanuary 2012 Supplement 4

- 40 CPV Valley Energy Center



### emission limits lower than 6.0 ppm. The Sam Rayburn Generation Station in Nursery, Texas is listed in the RBLC as having a NO x 

### emission limit of 5 ppm. Additionally, the Towantic Energy, LLC, the Lake Road Generating Company, L.P. and the PDC El Paso Milford, LLC facilities are listed in the RBLC as having NO x 

### emission limits of 5.9 ppm. CPV Valley is still unable to verify if any of these four facilities have achieved these emission limits in practice.

4.11.2.1.2 Auxiliary Boiler

A recent search of the RBLC and available permits for comparable natural gas

- fired boilers between 10 and 100 million British thermal units per hour ( mmBtu/hr ) in size did not identify any new permits (since November 2008) with NO x 

### emission limits less than what w as originally proposed for the Project. There have been, however, boilers similar in size to the proposed unit which have installed SCR, but these units operate year

- round, unlike the auxiliary boiler proposed for the Project which will only operate for a maximum of 2,000 hours/year.

4.11.2.1.3 Fuel Gas Heaters

A recent search of the RBLC and available permits for comparable natural gas

- fired dew point/fuel/efficiency/recuperator heaters did not identify any new permits (since November 2008) with NO x 

### emi ssion limits less than what was originally proposed for the Project.

4.11.2.1.4 Emergency Diesel Engines

A recent search of the RBLC and available permits for comparable emergency diesel engines and fire pumps did not identify any new permits (since Nov ember 2008) with NO x 

### emission limits less than what was originally proposed for the Project.

4.11.2.2 Determination of LAER for NO x



### 4.11.2.2.1 Combined Cycle Combustion Turbines and Duct Burners

CPV Valley proposes dry low NO x 

### ( DLN ) controls during nat ural gas firing and water injection during oil firing. These technologies will be used in combination with selective catalytic combustion ( SCR ) , in order to achieve LAER for NO x 

### emissions from the Project’s combined

cycle units. The proposed NO x 

### emission limit for the turbines is 2.0 ppm (3

- hour average) while firing natural gas with and without duct firing and 6.0 ppm (3

- hour average) when firing ULSD.

4.11.2.2.2 Auxiliary Boiler

Based on the update presented above, the Project is proposing to use fl ue gas recirculation in combination with low

- NO x 

### burners to achieve NO x 

### emissions of 0.045 lb/mmBtu.January 2012 Supplement 4

- 41 CPV Valley Energy Center



### 4.11.2.2.3 Fuel Gas Heaters

Based on the update presented above, the Project is proposing to use forced draft low NO x 

### burner ( LNB ) controls for the na tural gas

- fired fuel gas heaters. This will result in a NO x 

### emission limit of 0.058 lb/mmBtu. Based on this proposed emission rate, the heaters will contribute a total of 2.53 tons of NO x 

### per year, based on its relatively low firing rate. By controlling the fuel gas heater’s NO x 

### emissions using the forced draft LNB design, CPV Valley is implementing LAER control technology.

4.11.2.2.4 Emergency Diesel Engines

Although add

- on controls, such as SCR, have been employed to reduce emissions from diesel

en gines with greater annual operating capacity factors, such controls are ruled out by the limited annual operation of the emergency engines . Thus, CPV Valley proposes limited hours of operation and good combustion practices as LAER to achieve a NO x 

### emissio n rate of 0.859 lb/mmBtu for the emergency diesel fire pump and 4.78 g/hp

- hr for the emergency diesel generator. For the emergency generator, t he proposed NO x 

### emission rate limit has been reduced slightly (from 4.97 to 4.7 8 g/hp

- hr) to meet the presently applicable NSPS for such equipment.



### 4.11.3 Volatile Organic Compounds

4.11.3.1 Review of VOC RBLC and Permit Databases

4.11.3.1.1 Combined Cycle Combustion Turbines and Duct Burners

A recent search of the RBLC and available permits for natural gas and oil fir ed combined cycle combustion turbine projects did not identify any new permits with VOC emission limits less than those proposed for the Project.

4.11.3.1.2 Auxiliary Boiler

A recent search of the RBLC and available permits for natural gas

- fired boiler s between 10 and 100 mmBtu/hr in size did not identify any new permits with VOC emission limits less than what was originally proposed for the Project.January 2012 Supplement 4

- 42 CPV Valley Energy Center



### 4.11.3.1.3 Fuel Gas Heaters

A recent search of the RBLC and available permits did not yield any new permits with lower limits than that proposed for the Project. All limits listed in the RBLC are based on units employing either good combustion techniques or clean fuels.

4.11.3.1.4 Emergency Diesel Engines

A recent search of the RBLC and available permits for comparable emergency diesel engines and fire pumps did not identify any new permits (since November 2008) with VOC emission limits less than what was originally proposed for the Project.

4.11.3.2 Determination of LAER for VOC

4.11.3.2.1 Combi ned Cycle Combustion Turbines and Duct Burners

The Project is proposing to install an oxidation catalyst designed to reduce VOC emissions when firing natural gas to 0.7 ppm and 1.8 ppm without and with duct firing, respectively. The Project also proposes to reduce VOC emissions with an oxidation catalyst to 0.7 ppm when firing ULSD

.

4.11.3.2.2 Auxiliary Boiler

The auxiliary boiler is proposed to employ good combustion practices and a restriction on annual operating hours. It is proposed that these co ntrol methods represent LAER for VOC emissions by limiting VOC emissions to 0.004 lb/mmBtu.

4.11.3.2.3 Fuel Gas Heaters

The burners selected for the proposed Project use modern design and combustion controls to optimize fuel combustion. It is propose d that the use of good combustion control represents VOC LAER for the fuel gas heater, resulting in a maximum VOC emission rate of

0.011 lb/mmBtu. The proposed limit holds potential VOC emissions for this equipment to no more than 0.24 tons/year.

4.11. 3.2.4 Emergency Diesel Engines

The application of good combustion practices and limited operating hours is proposed in order to achieve LAER for the emergency diesel fire pump and emergency diesel generator. The maximum VOC emissions from the emergency d iesel fire pump and emergency generator are 0.3612 lb/mmBtu and 0.0331 lb/mmBtu, respectively. Potential VOC emissions from these pieces of equipment are less than 0.5 tons/year total.January 2012 Supplement 4

- 43 CPV Valley Energy Center



### 4.11.4 Carbon Monoxide

4.11.4.1 Review of CO RBLC and Permit Databases

4.1 1.4.1.1 Combined Cycle Combustion Turbines and Duct Burners

A recent search of the RBLC and available permits for natural gas fired combined cycle combustion turbine projects did not identify any new permits with CO emission limits less than the 2.0 ppm p roposed for the Project. However, one project which was previously identified with a CO limit of 0.9 ppm was not in operation at the time of the original submittal. Since that time, the Kleen Energy facility in Middletown, Connecticut commenced commercia l operation in late July 2011. Since the facility has been in operation for less than one year, not enough data exists to determine if the facility is operating in compliance with this low CO limit. On the contrary, significant data exists demonstrating that 2.0 ppm CO has been achieved in practice. Therefore, CPV Valley is proposing a 2.0 ppm limit (with and without duct firing) for natural gas operation.

A recent search of the RBLC and available permits for oil

- fired combustion turbines indicated that the most stringent CO emission rate is 2.0 ppm (without duct firing) achieved through the use of an oxidation catalyst.

4.11.4.1.2 Auxiliary Boiler

A recent search of the RBLC and available permits for natural gas

- fired boilers between 10 and 100 mmBt u/hr in size did not identify any new permits with CO emission limits less than what was originally identified.

4.11.4.1.3 Fuel Gas Heaters

A recent search of the RBLC and available permits for similar units did not identify any new permits with CO emi ssion limits less than what was originally identified.

4.11.4.1.4 Emergency Diesel Engines

A recent search of the RBLC and available permits for comparable emergency diesel engines and fire pumps did not identify any new permits (since November 2008) w ith CO emission limits less than what was originally proposed for the Project.January 2012 Supplement 4

- 44 CPV Valley Energy Center



### 4.11.4.2 Determination of BACT for CO

4.11.4.2.1 Combined Cycle Combustion Turbine and Duct Burner

The Project is proposing to install an oxidation catalyst designed to redu ce CO emissions to

2.0 ppm during natural gas and ULSD firing without the duct burner operating.

For oil firing, the Project proposes an oxidation catalyst to achieve BACT. The proposed permit limit is 2.0 ppm for the combustion turbine operating witho ut the duct burner and 3.4 ppm for the combustion turbine operating with duct burner firing. This constitutes the lowest permitted emission rate for a turbine, regardless of operational status.

4.11.4.2.2 Auxiliary Boiler

T he Project is continuing to p ropos e the use of good combustion practices to achieve CO emissions of 0.07 lb/mmBtu. A control cost analysis for an oxidation catalyst was presented in the original application in Appendix F and remains valid. This analysis shows that for this boiler’s limited operation, an oxidation catalyst is cost

- prohibitive for the Project at approximately $31,000/ton CO controlled and thus is not considered BACT for this Project.

4.11.4.2.3 Fuel Gas Heater

The Project is proposing to use good combustion practic es and clean fuels to achieve CO emissions of 0.084 lb/mmBtu. The results of the RBLC and recent air permit search identify the Caithness Bellport Energy Center in Brookhaven, New York as the latest permit issued for a similar emission unit in USEPA Regio n 2. This project has been permitted with a CO emission rate of 0.084 lb/mmBtu (same as the proposed Project). Therefore, the proposed CO controls and emission rate represent BACT for the CPV Valley fuel gas heaters.

4.11.4.2.4 Emergency Diesel Engines

Existing permits show that add

- on control technology is not practical for control of CO emissions from emergency equipment. Therefore, the Project is proposing BACT for CO emissions through good combustion practices and limiting operating hours. The pro posed emission rate from the emergency diesel fire pump is 0.753 lb/mmBtu and the proposed CO emission rate from the emergency diesel generator is 0.136 lb/mmBtu.January 2012 Supplement 4

- 45 CPV Valley Energy Center



### 4.11.5 PM/PM

- 10

4.11.5.1 Review of PM/ PM

- 10 RBLC and Permit Databases

4.11.5.1.1 Combined Cyc le Combustion Turbines and Duct Burners

A recent search of the RBLC and available permits for natural gas and oil fired combined cycle combustion turbine projects did not identify any new permits with PM/PM

- 10 emission limits less than those identified in the original application.

As stated in our application, a review of approximately 280 natural gas

- fired and 70 fuel oil

fired combined cycle facilities from the USEPA’s RBLC and recently issued air permit searches (see Appendix E) lists PM/PM

- 10 emissi on limits ranging from 0.0013 to 0.1400 lb/mmBtu for natural gas and PM/PM

- 10 emission limits ranging from 0.005 to 0.126 lb/mmBtu for fuel oil.

For natural gas firing, the lowest PM/PM

- 10 permit limits were found at a New York facility, the Calpine Waw ayanda plant, which was permitted in July 2002 with a PM/PM

- 10 emission limit of 0.0013 lb/mmBtu at partial load and 0.0093 lb/mmBtu at full load. Another New York facility burning natural gas, the KeySpan Spagnoli Road Energy Center, was permitted with a PM/PM

- 10 emission limit of 0.0182 lb/mmBtu in April 2003 (almost a year after the Wawayanda permit was issued).

For oil firing, the lowest PM/PM

- 10 permit limit at a New York facility, the ConEd East River Repowering Project, was permitted in August 20 01 with a PM/PM

- 10 emission limit of 0.033 lb/mmBtu. Another New York facility burning fuel oil, the Mirant Bowline, LLC Facility, was permitted with a PM/PM

- 10 emission limit of 0.058 lb/mmBtu in March 2002 (more than 6 months after the ConEd East River Project permit was issued).

In fact, the permits for natural gas

- and fuel oil

- fired combined cycle combustion turbine projects issued in New York do not follow any sort of emissions versus permit date trend (i.e., later permit date = lower PM/PM

- 10 emi ssion rate). Note also that two of the four projects (Calpine Wawayanda and KeySpan Spagnoli Road) identified above have not been built. Thus, the available control technologies, good combustion practices and low

- sulfur fuels , should be considered the dr iving factors for proposing BACT.

4.11.5.1.2 Auxiliary Boiler

A recent search of the RBLC and available permits shows that typically good combustion practices and low

- sulfur fuel have been used as BACT for gas

- fired boilers.January 2012 Supplement 4

- 46 CPV Valley Energy Center



### 4.11.5.1.3 Fuel Gas Heate rs
A recent search of the RBLC and available permits for similar units did not yield any new permits with PM/PM

- 10 emission limits less than what was originally identified in the November 2008 application.

4.11.5.1.4 Emergency Diesel Engines

A recent search of the RBLC and available permits shows that only good combustion practices and low

- sulfur fuels have been used as BACT for diesel engines.

4.11.5.2 Determination of BACT for PM/PM

- 10

4.11.5.2.1 Combined Cycle Combustion Turbines and Duct Burne rs
Good combustion techniques and low

- sulfur fuels have been proposed to limit PM/PM

- 10 emissions. Proposed emission limits for PM/PM

- 10 when firing natural gas in the combustion turbines are 0.0073 lb/mmBtu for the operation of each combustion turbine o nly and 0.0062 lb/mmBtu for the operation of each combustion turbine and duct burner together . The proposed emission limits for PM/PM

- 10 when firing fuel oil in each combustion turbine is 0.068 lb/mmBtu for the combustion turbine only and 0.0368 lb/mmBtu for each combustion turbine and duct burner together

. These values are within the range of recent BACT determinations for combustion turbines without and with duct burners

.

4.11.5.2.2 Auxiliary Boiler

The Project proposes the exclusive use of clean

- bu rning fuels in conjunction with good combustion practices as BACT. The proposed PM/PM

- 10 emission limit for the auxiliary boiler is 0.0063 lb/mmBtu.

4.11.5.2.3 Fuel Gas Heaters

The Project proposes the exclusive use of clean

- burning pipeline quality na tural gas in conjunction with good combustion practices as BACT. The proposed BACT PM/PM

- 10 limit for the fuel gas heaters is 0.0076 lb/mmBtu.

4.11.5.2.4 Emergency Diesel Engines

The Project proposes to use ULSD, employ good combustion practices, and limit operating hours as BACT for PM/PM

- 10. The PM/PM

- 10 emission rates from the emergency diesel fireJanuary 2012 Supplement 4

- 47 CPV Valley Energy Center



### pump and the emergency diesel generator are proposed as 0.04 lb/mmBtu and 0.009 lb/mmBtu, respectively.



### 4.11.6 Sulfur Dioxide and Sulfuric Acid Mist

SO 2 

### emis sions are formed from the oxidation of the sulfur in the fuel. H 2 

### SO 4 

### emissions, in addition to being a function of the fuel sulfur content, are also related to the amount of oxidation of fuel sulfur to SO 3 

### . Sulfuric acid is produced when SO 2 

### is converted to SO 3 

### in the presence of a catalyst and is then further combined with water to form H 2 

### SO 4 

### (sulfuric acid). Note that to be available to react with water to form sulfuric acid, the SO 3 

### would have to avoid first reacting with ammonia slip (and forming amm onia salts). During the combustion process, most of the sulfur is converted to SO 2 

### . For the combustion turbines , twenty percent of the SO 2 

### is assumed to be converted to SO 3 

### , as a result of the combined effects of the combustion process and additional oxi dation by the SCR and oxidation catalysts, and eventually to H 2 

### SO 4 

### and/or ammonium sulfate salts.

4.11.6.1 Review of SO 2 

### and H 2 

### SO 4 

### RBLC and Permit Databases

A recent search of the RBLC and available permits indicated only one option for SO 2 

### and H 2 

### SO 4 

### con trol. For all units where SO 2 

### and H 2 

### SO 4 

### control was identified, the only option considered was the combustion of low

- sulfur fuels. No other controls have been implemented on a gas and oil fired combustion turbine, boiler/heater or diesel engine.

4.11. 6.1.1 Combined Cycle Combustion Turbines and Duct Burners

A recent search of the RBLC and available permits for natural gas and oil fired combined cycle combustion turbine projects did not identify any new permits with SO 2 

### /H 2 

### SO 4 

### emission limits less than those identified in the original application.

4.11.6.1.2 Auxiliary Boiler

A recent search of the RBLC and available permits for natural gas fired boilers did not identify any new permits with emission limits less than those identified in the original a pplication.

4.11.6.1.3 Fuel Gas Heaters

A recent search of the RBLC and available permits indicated that the use of low sulfur fuels represents BACT for both SO 2 

### and H 2 

### SO 4 

### emissions.January 2012 Supplement 4

- 48 CPV Valley Energy Center



### 4.11.6.1.4 Emergency Diesel Engines

A recent search of the RBLC and available permits for comparable emergency diesel engines and fire pumps did not identify any new permits (since November 2008) with emission limits less than what was originally proposed for the Project.

4.11.6.2 Determination of BACT for SO 2 

### and H 2 

### SO 4


### 4.11.6.2.1 Combined Cycle Combustion Turbines and Duct Burners

When firing natural gas, CPV Valley proposes to use low

- sulfur fuel (0.8 grains/100 scf) to meet BACT for SO 2 

### and H 2 

### SO 4 

### . SO 2 

### emissions will be limited to 0.0022 lb/mmBtu and H 2 

### SO 4 

### emissions will be limited to 0.0007 lb/mmBtu.

For oil firing, the Project proposes ULSD (15 ppm) as BACT for SO 2 

### and H 2 

### SO 4 

### . SO 2 

### emissions will be limited to 0.0015 lb/mmBtu. Sulfuric acid emissions will be limited to 0.0005 lb/mmBtu.

4.11.6.2.2 Auxiliary Boile r
The Project proposes to fire natural gas in the auxiliary boiler to meet BACT for SO 2 

### and H 2 

### SO 4 

### . The proposed SO 2 

### emission limit is 0.0022 lb/mmBtu; the proposed H 2 

### SO 4 

### BACT emission limit is 0.0002 lb/mmBtu.

4.11.6.2.3 Fuel Gas Heaters

The Project proposes to fire pipeline quality natural gas in the fuel gas heaters to meet BACT for SO 2 

### and H 2 

### SO 4 

### . The proposed SO 2 

### BACT emission limit is 0.0022 lb/mmBtu. The proposed H 2 

### SO 4 

### BACT emission limit is 0.0002 lb/mmBtu.

4.11.6.2.4 Emergency Diesel Engines

The use of ULSD is proposed as BACT for the control of SO 2 

### and H 2 

### SO 4 

### . The proposed SO 2 

### BACT limit for the emergency diesel engines is 0.0014 lb/mmBtu. The proposed H 2 

### SO 4 

### BACT emission limit for the emergency diesel fire pump and the emergency diesel ge nerator is 0.00003 lb/mmBtu.



### 4.11.7 Summary of Control Technology Proposals

Tables 4

- 1 through 4

- 5 provide a summary of the control technology proposals presented for the regulated pollutants.January 2012 Supplement 4

- 49 CPV Valley Energy Center



### Table 4 - 1: Summary of Proposed BACT/LAER

– Combustion Turbine/Duct Burner

Pollutant Limit Method Basis NO x 2.0 ppm (CT

– gas firing with & without DB)

6.0 ppm (CT

– oil firing) DLN & SCR Water Injection & SCR LAER

VOC 0.7 ppm (CT

– gas firing)

0.7 ppm (CT

– oil firing) 1.8 ppm (CT

– gas firing with DB) Good combustion
co ntrols & oxidation catalyst LAER

CO 2.0 ppm (CT

– gas firing)

2.0 ppm (CT

– oil firing) 3.4 ppm (CT

– gas firing with DB) Good combustion controls & oxidation catalyst BACT

PM/PM

- 10 0.0073 lb/mmBtu (gas firing with & without DB)

0.0368 lb/mmBtu (oil fir ing) Low

- sulfur fuels BACT

SO 2 0.0022 lb/mmBtu (gas firing with & without DB)

0.0015 lb/mmBtu (oil firing) Low

- sulfur fuels BACT

H 2 SO 4 0.0007 lb/mmBtu (gas firing with & without DB)

0.0005 lb/mmBtu (oil firing) Low

- sulfur fuels BACT



### Table 4 - 2: Summary of Proposed BACT/LAER

– Auxiliary Boiler

Pollutant Limit Method Basis NO x 0.0450 lb/mmBtu LNB & FGR LAER
VOC 0.0038 lb/mmBtu Good combustion controls LAER

CO 0.0721 lb/mmBtu Good combustion controls BACT PM/PM

- 10 0.0063 lb/mmBtu Low

- sulfur fuel BACT

SO 2 0.0022 lb/mmBtu Low

- sulfur fuel BACT H 2 SO 4 0.0002 lb/mmBtu Low

- sulfur fuel BACTJanuary 2012 Supplement 4

- 50 CPV Valley Energy Center 

### Table 4 - 3: Summary of Proposed BACT/LAER

– Fuel Gas Heater

Pollutant Limit Method Basis

NO x 0.058 lb/mmBtu Forced draft LNB LAER VOC 0.011 lb/mmBtu Good combustio n controls LAER CO 0.084 lb/mmBtu Good combustion controls BACT PM/PM

- 10 0.0076 lb/mmBtu Low

- sulfur fuel BACT

SO 2 0.0022 lb/mmBtu Low

- sulfur fuel BACT H 2 SO 4 0.0002 lb/mmBtu Low

- sulfur fuel BACT



### Table 4 - 4: Summary of Proposed BACT/LAER

– Emergency D iesel Fire Pump

Pollutant Limit Method Basis
NO x 0.857 lb/mmBtu Good combustion controls LAER VOC 0.3612 lb/mmBtu Good combustion controls LAER CO 0.75 lb/mmBtu Good combustion controls BACT PM/PM

- 10 0.043 lb/mmBtu Low

- sulfur fuel BACT

SO 2 0.0014 lb /mmBtu Low

- sulfur fuel BACT H 2 SO 4 0.00003 lb/mmBtu Low

- sulfur fuel BACT



### Table 4 - 5: Summary of Proposed BACT/LAER

– Emergency Diesel Generator

Pollutant Limit Method Basis
NO x 4.78 g/hp

- hr * Good combustion controls LAER VOC 0.0331 lb/mmBtu Good comb ustion controls LAER CO 0.45 g/hp

- hr Good combustion controls BACT PM/PM

- 10 0.03 g/hp

- hr Low

- sulfur fuel BACT

SO 2 0.0014 lb/mmBtu Low

- sulfur fuel BACT H 2 SO 4 0.00003 lb/mmBtu Low

- sulfur fuel BACT
* This proposed NO x emission limit has been reduced (f rom 4.97 g/hp

- hr), to meet the presently applicable NSPS for such equipment.January 2012 Supplement 5
- 26 CPV Valley Energy Center 

### CPV VALLEY, LLC CPV VALLEY ENERGY CENTER SUPPLEMENTAL AIR QUALITY MODELING ANALYSES FOR

THE NEW NAAQS AND PSD INCREMENTS

5 . 7 Supplemental Air Quality Modeling Analyses

5 . 7 .1 Overview

This section of the Supplement updates Section 5 .0 of the November 2008 “PSD and Part 201 Air Permit Application” for the proposed CPV Valley Energy Center. As such, it provides demonstrations of compliance with new regulatory requirements, i.e., new (or revised) National Ambient Air Quality Standards (NAAQS) and Prevent ion of Significant Deterioration (PSD) increments, which have be come applicable to the Project since November 2008. The new (or revised) NAAQS pertain to nitrogen dioxide (NO 2 

### ), sulfur dioxide (SO 2 

### ) and lead (Pb) . The new PSD increments pertain to partic ulate matter less than or equal to 2.5 micrometers in diameter (PM

- 2.5).

Appendix G1 of the Supplement provides detailed discussions of the additional modeling analyses that have been performed to demonstrate compliance with the new NAAQS and PSD incremen ts

. Contained in Appendix G1 are an “ Air Quality Modeling Protocol (Supplements 1 and 2) ,” “N

YSDEC Comments on the Protocol Supplements ” (Appendix G1.1), and “ Responses to NYSDEC Comments ” (Appendix G.1.2). As described in detail therein, the supplemental modeling analyses have been performed in accordance with the applicable regulatory requirements, modeling guidance, and approved modeling procedures.

The documents in Appendix G1 anticipated that supplemental AERMOD modeling anal yses would be required to demonstrate compliance with the new 1

- hour average NAAQS for NO 2 

### and SO 2 

### , while the information needed to demonstrate compliance with the new 24

- hour and annual average PSD increments for PM

- 2.5 and the revised rolling three

- month average NAAQS for Pb would be available from the pre

- processed or post

- processed AERMOD model output files that

were produced in November 2008. It was subsequently determined that the high est second high (H2H ) 24

- hour average PM

- 2.5 concentrations that are needed to assess compliance with the 24

- hour average PSD increment were not obtainable from any of the available model output files (because th ose files did not contain the values needed for comparison to th at statistic)

. Therefore, supplemental modeling analyses have also been performed to demonstrate compliance with the 24

- hour and annual average PSD increments for PM

- 2.5.January 2012 Supplement 5
- 27 CPV Valley Energy Center



### The following subsections summarize the procedures and input data used for the supp lemental modeling analyses. Any c hanges made to November 2008 m odel ing procedures and input data

a re identified, and appropriate references are provided to relevant information that is contained in the November 2008 Application or elsewhere in this Supplement

.

5.7.2 Modeling Procedures and Input Data

5 . 7 . 2 .1 Source Data

The Project sources that were subject to the supplemental modeling analyses have remained unchanged since November 2008. With two exception s , the stack parameter data used to model those sources have also remain ed unchanged from th e data contained in Tables 2

- 3 through 2

- 9 of the November 2008 Air Quality Modeling Protocol (Revised) . The first exception pertains to the nitrogen oxides (NO x 

### ) e mission rates for the turbine startup operating scenarios , which were instead obtained from Table B

- 5 in Appendix B of the November 2008 Application , because Table 2

- 4 of that Protocol does not contain those emission rates

. The second exception pertains t o a small reduction in the NO x 

### emission rate of the emergency generator (see subsection 4.11.2.2.4 of this Supplement).

As anticipated in Appendix G

- 1 (Section 5.8 ) of this Supplement , multi

- source modeling analyses were required to demonstrate compliance with the new 1

- hour average NAAQS for NO 2 

### . T able 5

- 14 summarizes the inventory of additional nearby NO x 

### emission sources that were modeled. Additional details regarding those additi onal modeled sources are provided in Appendix H1 of this Supplement.

5 . 7 . 2 .2 Model Selection and Options

The same model (AERMOD) has been used to perform all of the compliance demonstration modeling analyses for the Project, but the latest version (11103) of AERMOD (released on April 7, 2011) was used to perform the additional modeling analyses that are described in this Supplement

. As was the case for the November 2008 modeling analyses, t h e regulatory default model option was used for the supplemental modeling analyses. However, a dditional model options were used in t he AERMOD modeling analyses that were performed to demonstrate compliance with the 1

- hour average NAAQS for NO 2 

### . Details re garding the selection and use of th o se additional model options are provided in Appendix G1 of this Supplement

.

5 . 7 . 2.3 Receptor Grid

The initial receptor grid used in all the supplemental modeling analyses for the Project remained unchanged from that used in the November 2008 modeling analyses. However, an additionalJanuary 2012 Supplement 5
- 28 CPV Valley Energy Center



### refined receptor grid was also developed for the multi

- source modeling analyses that have been used to demonstrate compliance with the 1

- hour average NO 2 

### NAAQS (see Section 5.7.3.5).

5 . 7 . 2. 4 Meteorological Data

The same five years of meteorological data (2002

- 2006) , from Orange County Airport in Montgomery, New York, were used to perform all of the compliance demonstration modeling analyses for the Project, but those data were first re

- processed using the latest version (11059) of the AERMET preprocessor prior to their input to the latest version (11103) of AERMOD, whi ch was used for the additional modeling analyses that are described in this Supplement. All other aspects of the meteorological data input remained unchanged from that used in the November 2008 modeling analyses . Additional details regarding the meteorol ogical data re

- processing are provided in Appendix G1 of this Supplement

.

5 . 7 . 3 AERMOD Results

5.7. 3 .1 Project SO 2 

### Impacts
As discussed in Section 5.2 of Appendix G1 of this Supplement, the require ment to demonstrat e compliance with the 1

- hour average NAAQS for SO 2 

### will be satisfied if the 5

- year average of the maximum 1

- hour impact at each receptor for the Project (by itself) is below the 1

- hour average significant impact level ( SIL ) for SO 2 

### . Table 5

- 15 summar izes the results of the AERMOD modeling analyses that were performed to determine the Project’s maximum 1

- hour average SO 2 

### impact at each receptor in each of the five years . The table shows that the maximum 5

- year average of the Project’s maximum 1

- hour impact at each receptor is belo w the 1

- hour average SO 2 

### SIL. The AERMOD modeling results in Table 5

- 15 therefore demonstrate compliance with the 1

- hour average NAAQS for SO 2 

### .

5.7. 3 . 2 Project N O 2 

### Impacts
As discussed in Section 5.2 of Appendix G1 of this Supplement, the require ment to demonstrat e compliance with the 1

- hour average NAAQS for N O 2 

### will be satisfied if the 5

- year average of the maximum 1

- hour impact at each receptor for the Project (by itself) is below the 1

- hour average SIL for N O 2 

### . Table 5

- 1 6 summar izes the results of t he AERMOD modeling analyses that were performed to determine the Project’s maximum 1

- hour average NO 2 

### impact at each receptor in each of the five years. The table shows that the maximum 5

- year average of the Project’s maximum 1

- hour impact at each recepto r is above the 1

- hour average NO 2 

### SIL. Therefore, f or the reasons discussed in Sections 5.6 and 5.8 of Appendix G1 of th is Supplement, the AERMOD modeling results in Table 5

- 16 necessitate d multi

- source NO x 

### modeling analyses to demonstrate compliance with the 1

- hour average NAAQS for NO 2 

### .January 2012 Supplement 5
- 29 CPV Valley Energy Center



### Table 5

- 1 6 shows that the largest predicted impacts are attributable to the ancillary equipment and the turbine startup and shutdown period operating scenarios. However, the modeling results that include the ancillary equipment and the turbine startup and shutdown periods are very conservative because they assume that the emission rates associated with thos e operating conditions will occur during every hour of the five year period modeled. In reality, those emission rates will only occur during a few dozen or at most a few hundred hours (when the emergency equipment is tested and when the turbines are start ed up and shut down) each year. Therefore, the modeling results that are shown for the turbines operating alone are much more representative of the actual maximum impacts that can be expected to occur.

5.7. 3 . 3 Project PM

- 2.5 Impacts

As stated in Section 5.7.1 above, the PM

- 2.5 concentrations that are needed to assess compliance with the 24

- hour average PSD increment were not obtainable from the November 2008 AERMOD model output files, so supplemental modeling analyses have also been performed for PM

- 2.5. Table 5

- 17 summarize s the initial results of the supplemental AERMOD modeling analyses that were performed to demonstrate compliance with the 24

- hour average PSD increment for PM

- 2.5. Since the Project’s maximum predicted 24

- hour average PM

- 2.5 impact

e xceeds the corresponding SIL of 1.2 μg/m 3 

### , the H2H total impact of the Project plus all other PM

- 2.5 i ncrement affecting sources must be less than the corresponding PSD increment of 9 μg/m 3 

### (Section 2 of Appendix G1 in this Supplement)

.

NYSDEC has not rec ei v ed (or deemed complete) an y air permit application for a major source (or major modification) in the region surrounding the Project since the October 20, 2010 major source baseline date (40 CFR 51.166(b)(14)(i)(c)) for PM

- 2.5, nor has NYSDEC received (or deemed complete) an y air permit application for a minor source (or modification) in the region surrounding the Project since the October 20, 2011 minor source baseline date (40 CFR 51.166(b)(14)(ii)(c)) for PM

- 2.5. Since there are no other P M

- 2.5 PSD increment affecting sources in the region surrounding the Project, the compliance demonstration requirement is satisfied if the H2H 24

- hour and maximum annual average impacts of the Project by itself are less than the PM

- 2.5 PSD increments

. Tabl e 5
- 18 show s that th e impacts of the Project by itself are well below the corresponding PM

- 2.5 PSD increments for those averaging periods

.

5.7. 3 . 4 Project Pb Impacts

As discussed above (Section 5.7.1) and in Appendix G1 (Section 3) of this Supplement , when that Appendix to this Supplement was prepared it was anticipated that the information needed to demonstrate compliance with the revised rolling three

- month average NAAQS for Pb would be available from the AERMOD model output files produced in Novemb er 2008. As expected,January 2012 Supplement 5
- 30 CPV Valley Energy Center



### t h ose model output files contain sufficient information to demonstrate that the maximum impacts of the Project comply with the revised rolling three

- month average NAAQS for Pb. T he November 2008 modeling analyses pr edicted a maximum 24

- hour average Project Pb impact of 0.009 μg/m 3



### . Since the Project ’s maximum impact would be much smaller over a three

- month averaging period , that maximum impact would be much less than the revised 0.15 μg/m 3 

### Pb NAAQS for that averag ing period

.

5.7. 3 . 5 Cumulative N O 2 

### Impacts
The required c umulative impact modeling analyses for N O 2 

### were conducted in accordance with the procedures described above ( in Section 5.7.2) and in Appendix G1 of this Supplement

. Th e analyses for the refined receptor grid were performed for the two oil firing operating scenarios that produced the maximum predicted 1

- hour average NO x 

### impacts for the Project turbines alone in Table 5

- 16 : 1) case SF01 , and 2) the warm startup case , and they included the emissions of the ancillary sources

.

The res ults of the cumulative impact modeling analyses include the impacts of the Project emissions , the approved multi

- source inventory of all other permitted sources of NO x 

### emissions in the region and N O 2 

### background concentrations that reflect the existing ambient air quality in the region . The modeling was conducted to demonstrate that the total combined impacts of the Project and the other permitted sources in the region , plus the background concentrations , will comply with the 1

- hour average NAAQS for N O 2 

### . Two sets of cumulative impact modeling analyses were required to determine whether the impacts of the Project meet the regulatory requirements for a demonstration of compliance with the 1

- hour average N O 2 

### NAAQS. The results of the first set of cumulative impact modeling analyses demonstrated compliance with the 1

- hour average N O 2 

### NAAQS at all but one modeled receptor , which is located 4.9 km to the east southeast of the Project in the vicinity of the Al Turi l andf ill LFGTE facility

. As such, at all other receptors, the first set of cumulative impact modeling analyses demonstrate that the Project will not cause or make a significant contribution to any violations of the 1

- hour average N O 2 

### NAAQS

. Table 5

- 19 summarizes the results of the first set of cumulative impact modeling analyses for the

1

- hour average NO 2 

### NAAQS

. More specifically, for the one initial receptor where violations were predicted, the table shows the source contributions to the ma ximum total 1

- hour average NO 2 

### concentrations for three Project operating scenarios (i.e., the turbines operating alone, the turbines plus ancillary equipment and the turbines during startup and shutdown periods) plus the approved inventory of nearby permi tted sources and the background concentration combined

. The modeling results in Table 5

- 19 show that the Project’s contribution s to th ose maximum predicted total 1

- hour average NO 2 

### concentration s are zero or insignificant (i.e., wellJanuary 2012 Supplement 5
- 31 CPV Valley Energy Center



### below the SIL) , as are the Project’s contribution s to all other predicted concentrations that violate the 1

- hour average NO 2 

### NAAQS at that receptor.

The second set of cumulative impact modeling analyses was performed for the area surrounding th e receptor located in the vici nity of the Al Turi facility , using a refined grid of 4 4 1 receptors ( spaced at 100 meter intervals over the 2 km by 2 km area centered on that facility ) as input to the model

. The second set of cumulative impact modeling analyses shows that the Project does
not cause or make a significant contribution to any predicted 1

- hour average NO 2 

### NAAQS violation at any receptor located within the vicinity of the Al Turi facility

. Table 5

- 20 summarizes the cumulative impact modeling analyses for the receptors located in the vicinity of the Al Turi facility. The table shows the results of the cumulative impact modeling analyses for the maximum predicted 1

- hour average NO 2 

### concentration s at those receptors. 1 

### It also shows the maximum predicted 1

- hour average NO 2 

### concentration s that are associated with the maximum predicted Project contribution s to any of the predicted violations of the 1

- hour average NAAQS at those receptors

.

The modeling results in Table 5

- 2 0 show that the P roject ’s contribution s to th e max imum predicted total 1

- hour average NO 2 

### concentration s are insignificant (i.e., below the SIL)

. The table also illustrates that the Project makes insignificant contribution s to all other predicted violat ions of the 1

- hour average NO 2 

### NAAQS at all other receptors located in the vicinity of the Al Turi facility.

Th e modeling results that are summarized in Tables 5

- 19 and 5

- 20 show that the Project meets the regulatory requirements for a demonstration of compliance with the 1

- hour average NO 2 

### NAAQS.

1 Per the statistical form of the NAAQS, that maximum predicted 1

- hour average concentration is actually the highest (from among all the modeled receptors) five

- year average of the eighth high daily maximum 1

- hour average concentr ations predicted at each receptor (for each of the five modeled years)

.

### Table 5-14: Multi-Source NO x 

### Emission Inventory

DEC ID Facility Name SOURCE ID Emission Point ID AERMOD

ID UTM E

(km) UTM N

(km) BASE ELEVATION (m) EMISSION

RATE (g/s) STACK

HEIGHT (m) EXIT TEMP (K) EXIT

VELOCITY (m/s) STACK

DIAMETER (m) 3330900064 GENPAK LLC MIDDLETOWN MAIN PLANT USILO1 1 GENPAK 548.463 4586.643 152 0.0562 12.2 478 15.8 0.610 3333000113 MID-HUDSON PSYCHIATRIC CENTER U10000 0002A PYSC2AB 550.835 4584.057 134 0.791 18.3 422 8.56 0.508 U10000 0002B PYSC2AB 550.835 4584.057 134 0.791 18.3 422 8.56 0.508 U10000 0002C PYSC2C 550.835 4584.057 134 0.396 18.3 422 6.69 0.406 3333000184 AL TURI LANDFILL & LFGTE FACILITY 0U0001 5 TURI05 551.956 4583.902 123 0.596 4.27 616 25.9 0.305 0U0003 10 TURI10 551.903 4583.909 131 0.382 12.2 1,144 3.35 3.51 0U0001 12 TURI1213 551.997 4583.964 126 0.596 9.14 726 28.7 0.356 0U0001 13 TURI1213 551.997 4583.964 126 0.596 9.14 726 28.7 0.356 3335200039 BALL METAL BEVERAGE CONTAINER CORP U10100 AAEP1 BALL 553.197 4590.096 160 1.15 14.3 305 1.52 0.686 3335200145 REVERE SMELTING & REFINING CORP 1SRFKD 1 REV01 553.486 4590.049 157 0.970 61.0 311 27.1 1.42 10LEAD 2 REV10 553.403 4589.939 158 1.30 30.5 339 29.3 1.37 4BOILR 15 REVR15 553.522 4590.197 160 0.154 11.6 422 8.29 0.508 10LEAD 17 REVR17 553.457 4589.992 158 6.30 18.3 332 25.6 1.22 3335200291 PHILLIPSBURG FACILITY 1PHILL DRUM1 PHIL 554.652 4589.592 140 2.77 9.14 403 22.6 1.55 3335200326 ORANGE REGIONAL MEDICAL CENTER U3BLRS B0001 MEDB01 552.846 4588.009 128 0.429 12.5 505 15.9 0.610 U3BLRS B0002 MEDB02 552.849 4588.008 128 0.429 12.5 505 15.8 0.610 U3BLRS B0003 MEDB03 552.852 4588.007 128 0.357 12.5 505 15.8 0.610 3333000037 ORANGE COUNTY SANITARY LANDFILL LDFILL 550.157 4582.252 120 0.0454 6.10 700 21.6 0.305 3333800085 MINISINK COMPRESSOR STATION U00001 1 MINI0102 537.500 4576.200 198 0.340 15.8 737 11.3 1.09 U10002 2 MINI0102 537.500 4576.200 198 0.340 15.8 737 11.3 1.09
Coordinates refined using Google Earth/GIS imagery for BPIP analysis

## Table 5-14: Multi-Source NO x 

## Emission Inventory (continued)

Facility Name DEC ID Emission Unit ID Emission Point ID Bldg Width (m) Bldg Length (m) Bldg Height (m) Genpak 3330900064 USILO1 1 177 248.0 7.62 Mid Hudson Pyschiatric 3333000113 U10000 0002A 12.0 17.0 9.14 3333000113 U10000 0002B 12.0 17.0 9.14 3333000113 U10000 0002C 12.0 17.0 9.14 Al Turi 3333000184 0U0001 5 12.0 28.0 2.13 3333000184 0U0003 10 8.00 17.0 7.62 3333000184 0U0001 12 2.44 12.2 7.62 3333000184 0U0001 13 17.0 21.0 7.62 Ball Metal 3335200039 U10100 AAEP1 134 229 9.75 Revere Smelting + Refining 3335200145 4BOILR 15 64.0 156 10.7 3335200145 10LEAD 17 31.0 34.0 10.4 Phillipsburg Facility 3335200291 1PHILL DRUM1 12.0 25.0 6.71 Orange Regional Medical 3335200326 U3BLRS B0001 108 171 10.4 3335200326 U3BLRS B0002 108 171 10.4 3335200326 U3BLRS B0003 108 171 10.4 Minisink 3333800085 U00001 1 20.7 27.4 13.4 3333800085 U10002 2 20.7 27.4 13.4

### Table 5-15: Maximum Project 1-Hour SO 2 

### Impacts

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 1st High 1-Hour SO 2 Impact ( μ g/m 3 ) *
SF01 Oil BASE -5

--- Off 3.84 SF02 Oil 85% -5

--- Off 3.69 SF03 Oil 70% -5

--- Off 3.45 SF04 Oil BASE 51

--- Off 3.45 SF05 Oil 85% 51

--- Off 3.59 SF06 Oil 70% 51

--- Off 3.14 SF07 Oil BASE 90

--- On 3.34 SF08 Oil BASE 90

--- Off 3.23 SF09 Oil 85% 90

--- Off 3.30 SF10 Oil 70% 90

--- Off 2.79 3.91 SUFC Oil 3.43 SUFW Oil 3.43 SUFH Oil 3.43 3.43 3.91 SIL * 7.9

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 1st High 1-Hour SO 2 Impact ( μ g/m 3 ) *
SG01 Gas BASE -5

--- Off 5.72 SG02 Gas BASE -5 500 Off 7.08 SG03 Gas 80% -5

--- Off 6.39 SG04 Gas 60% -5

--- Off 4.85 SG05 Gas BASE 51 185.37 Off 6.51 SG06 Gas BASE 51 500 Off 7.24 SG07 Gas BASE 51

--- Off 5.67 SG08 Gas 80% 51

--- Off 5.83 SG09 Gas 60% 51

--- Off 4.14 SG10 Gas BASE 90 500 On 7.17 SG11 Gas BASE 90

--- On 5.55 SG12 Gas BASE 90 500 Off 6.74 SG13 Gas BASE 90

--- Off 5.48 SG14 Gas 80% 90

--- Off 5.29 SG15 Gas 60% 90

--- Off 3.72 7.31 SUGC GAS 4.70 SUGW GAS 4.70 SUGH GAS 4.70 4.71 7.31 SIL * 7.9

* Maximum 5-Year Average Impact Maximum Impact * Worst case: Turbines plus ancillary sources

Worst case: Startup emissions plus ancillary sources

Worst case: Startup emissions plus ancillary sources Worst case: Turbines plus ancillary sources

HOT STARTUP COLD STARTUP WARM STARTUP HOT STARTUP

COLD STARTUP WARM STARTUP Maximum Impact *

### Table 5-16: Maximum Project 1-Hour NO x 

### Impacts

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/Hr) Evap Cooling Highest 1st High 1-Hour NO x Impact ( μ g/m 3 ) *
SF01 Oil BASE -5

--- Off 60.4 SF02 Oil 85% -5

--- Off 57.9 SF03 Oil 70% -5

--- Off 54.5 SF04 Oil BASE 51

--- Off 54.2 SF05 Oil 85% 51

--- Off 56.5 SF06 Oil 70% 51

--- Off 49.4 SF07 Oil BASE 90

--- On 52.6 SF08 Oil BASE 90

--- Off 50.8 SF09 Oil 85% 90

--- Off 52.0 SF10 Oil 70% 90

--- Off 44.0 236 SUFC Oil 110 SUFW Oil 124 SUFH Oil 118 236 236 SIL * 7.5

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/Hr) Evap Cooling Highest 1st High 1-Hour NO x Impact ( μ g/m 3 ) *
SG01 Gas BASE -5

--- Off 19.7 SG02 Gas BASE -5 500 Off 24.7 SG03 Gas 80% -5

--- Off 19.8 SG04 Gas 60% -5

--- Off 16.4 SG05 Gas BASE 51 185.37 Off 22.6 SG06 Gas BASE 51 500 Off 25.3 SG07 Gas BASE 51

--- Off 19.6 SG08 Gas 80% 51

--- Off 18.1 SG09 Gas 60% 51

--- Off 14.2 SG10 Gas BASE 90 500 Off 25.0 SG11 Gas BASE 90

--- Off 19.1 SG12 Gas BASE 90 500 Off 23.0 SG13 Gas BASE 90

--- Off 18.3 SG14 Gas 80% 90

--- Off 16.4 SG15 Gas 60% 90

--- Off 12.8 236 SUGC GAS 48.0 SUGW GAS 55.4 SUGH GAS 51.5 236 236 SIL * 7.5

* Maximum 5-Year Average Impact Maximum Impact * Worst case: Turbines plus ancillary sources

Worst case: Turbines plus ancillary sources

Worst case: Startup emissions plus ancillary sources HOT STARTUP COLD STARTUP

COLD STARTUP WARM STARTUP HOT STARTUP

WARM STARTUP Worst case: Startup emissions plus ancillary sources Maximum Impact *

### Table 5-17: Maximum Project 24-hour PM-2.5 Impacts

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 1st High PM-2.5 24- Hour Impact ( μ g/m 3 ) * SF01 Oil BASE -5

--- Off 5.01 SF02 Oil 85% -5

--- Off 5.77 SF03 Oil 70% -5

--- Off 8.74 SF04 Oil BASE 51

--- Off 5.31 SF05 Oil 85% 51

--- Off 6.07 SF06 Oil 70% 51

--- Off 8.22 SF07 Oil BASE 90

--- On 5.30 SF08 Oil BASE 90

--- Off 5.17 SF09 Oil 85% 90

--- Off 5.83 SF10 Oil 70% 90

--- Off 7.25 SUFC Oil n/a SUFW Oil n/a SUFH Oil n/a 8.74 SIL * 1.2

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 1st High PM-2.5 24- Hour Impact ( μ g/m 3 ) * SG01 Gas BASE -5

--- Off 1.26 SG02 Gas BASE -5 500 Off 1.85 SG03 Gas 80% -5

--- Off 1.47 SG04 Gas 60% -5

--- Off 1.51 SG05 Gas BASE 51 185.37 Off 1.64 SG06 Gas BASE 51 500 Off 2.09 SG07 Gas BASE 51

--- Off 1.33 SG08 Gas 80% 51

--- Off 1.54 SG09 Gas 60% 51

--- Off 1.44 SG10 Gas BASE 90 500 Off 2.26 SG11 Gas BASE 90

--- Off 1.43 SG12 Gas BASE 90 500 Off 2.01 SG13 Gas BASE 90

--- Off 1.31 SG14 Gas 80% 90

--- Off 1.52 SG15 Gas 60% 90

--- Off 1.38 SUGC GAS n/a SUGW GAS n/a SUGH GAS n/a 2.26 SIL * 1.2

* In any of the 5 years modeled Maximum Impact * HOT STARTUP COLD STARTUP WARM STARTUP HOT STARTUP

COLD STARTUP WARM STARTUP Maximum Impact *Table 5-18: Maximum Project PM-2.5 PSD Increment Impacts

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 2nd High PM2.5 24-Hour Impact ( μ g/m3) * Highest 1st High

PM-2.5 Annual Impact ( μ g/m3) * SF01 Oil BASE -5

--- Off 3.03 0.118 SF02 Oil 85% -5

--- Off 2.89 0.118 SF03 Oil 70% -5

--- Off 3.97 0.118 SF04 Oil BASE 51

--- Off 3.08 0.118 SF05 Oil 85% 51

--- Off 2.82 0.118 SF06 Oil 70% 51

--- Off 3.90 0.118 SF07 Oil BASE 90

--- On 2.76 0.118 SF08 Oil BASE 90

--- Off 2.69 0.118 SF09 Oil 85% 90

--- Off 2.76 0.118 SF10 Oil 70% 90

--- Off 3.82 0.118 SUFC Oil n/a n/a SUFW Oil n/a n/a SUFH Oil n/a n/a 3.97 0.118 PSD Increment * 9 4

Case ID Fuel Turbine Load Ambient Temp (F) Duct Firing (MMBtu/hr) Evap Cooling Highest 2nd High PM2.5 24-Hour Impact ( μ g/m3) * Highest 1st High

PM-2.5 Annual Impact ( μ g/m3) * SG01 Gas BASE -5

--- Off 0.744 0.118 SG02 Gas BASE -5 500 Off 1.11 0.118 SG03 Gas 80% -5

--- Off 0.732 0.118 SG04 Gas 60% -5

--- Off 0.872 0.118 SG05 Gas BASE 51 185.37 Off 0.821 0.118 SG06 Gas BASE 51 500 Off 1.07 0.118 SG07 Gas BASE 51

--- Off 0.686 0.118 SG08 Gas 80% 51

--- Off 0.793 0.118 SG09 Gas 60% 51

--- Off 0.914 0.118 SG10 Gas BASE 90 500 Off 1.06 0.118 SG11 Gas BASE 90

--- Off 0.714 0.118 SG12 Gas BASE 90 500 Off 1.01 0.118 SG13 Gas BASE 90

--- Off 0.689 0.118 SG14 Gas 80% 90

--- Off 0.888 0.118 SG15 Gas 60% 90

--- Off 1.00 0.118 SUGC GAS n/a n/a SUGW GAS n/a n/a SUGH GAS n/a n/a 1.11 0.118 PSD Increment * 9 4

* In any of the 5 years modeled Maximum Impact * Maximum Impact *

HOT STARTUP COLD STARTUP WARM STARTUP HOT STARTUP

COLD STARTUP WARM STARTUP

### Highest 8th High Predicted NO 2 

### Concentrations (μg/m 3 

### ) * Project Other Sources Background Total
Fuel Oil 0.00 174 67.8 242
Gas 0.00 174 67.8 242
SU-SD 0.00 174 67.8 242 Turbines Plus Ancillary 2.44E-03 174 67.8 242 SIL * 7.50

--- --- --- NAAQS *

--- --- --- 188

* 5-Year Average Source Contributions to the



### Table 5-19: Cumulative 1-Hour Average NO 2 

### Modeling Results for the Initial Receptor

### Highest 8th High Predicted NO 2 

### Concentration (μg/m 3 

### ) * Project ** Other Sources Background Total Maximum Total Impact (Case ID SF01) 0.0195 236 55.1 291
Maximum Total Impact (Warm Startup) 0.0372 236 55.1 291

Maximum Project Contribution (Case ID SF01) 7.03 114 72.4 193

Maximum Project Contribution (Warm Startup) 7.16 114 72.4 194

SIL * 7.5

--- --- --- NAAQS *

--- --- --- 188

* 5-Year Average ** for the specified oil firing operating scenarios Source Contributions to the 

### Table 5-20: Cumulative 1-Hour Average NO 2 

### Modeling Results for the

Refined Receptor Grid