Facility DEC ID: 7351200030

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

IDENTIFICATION INFORMATION

Permit Type: Air Title V Facility Permit ID: 7-3512-00030/00023 Mod 0 Effective Date: 05/17/2010 Expiration Date: 05/16/2015

Mod 1 Effective Date: Expiration Date:

Permit Issued To:OSWEGO HARBOR POWER LLC 261 WASHINGTON BLVD OSWEGO, NY 13126

Contact: MARION GREENHALGH OSWEGO HARBOR POWER LLC 261 WASHINGTON BLVD OSWEGO, NY 13126-1751 (315) 349-2365

Facility: OSWEGO HARBOR POWER 261 WASHINGTON BLVD OSWEGO, NY 13126

Contact: MARION GREENHALGH OSWEGO HARBOR POWER LLC 261 WASHINGTON BLVD OSWEGO, NY 13126-1751 (315) 349-2365

Description: Mod 1 - This permit action adds permit conditions for 6NYCRR Part 249 (Best Available Retrofit Technology - BART for NOx, SO2, and PM-10) requirements and changes necessary to meet the updated 6NYCRR Part 227-2 (NOx Reasonably Available Control Technology RACT) requirements. Also, Unit 3 can no longer operate and has been removed from the permit. Additionally, conditions regaeding the burning of waste fuel have been removed to reflect the end of that capability at the facility.

Oswego Harbor Power is an electric power producer and includes the following equipment:

1. Unit 5 - (Emission Unit 5) This unit is capable of firing natural gas or oil, and its maximum heat input is 7,840 mmBTU/hr.

2. Unit 6 - (Emission Unit 6) This unit is capable of firing natural gas or oil, and its maximum heat input is 7,840 mmBTU/hr.

3. Unit 9 - (Emission Unit 9) This unit is a package boiler capable of firing natural gas or oil (residual or distillate). The maximum heat input is 78.3 mmBTU/hr firing natural gas and 74.9 mmBTU/hr firing oil.Facility DEC ID: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 2 4. Unit 10 - (Emission Unit 10) This unit is a package boiler used for station heating capable of firing natural gas or distillate oil. The maximum heat input is 90.5 mmBTU/hr.

5. The facility has four residual oil storage tanks with a capacity of 16,254,000 gallons each.

6. The facility operates a lime feeder at the water treatment plant.

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: ELIZABETH A TRACY 615 ERIE BLVD WEST SYRACUSE, NY 13204-2400

Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 3 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: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 4 LIST OF CONDITIONS

DEC GENERAL CONDITIONS General Provisions Facility Inspection by the Department Relationship of this Permit to Other Department Orders and Determinations 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 7 HEADQUARTERSFacility DEC ID: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 5 DEC GENERAL CONDITIONS **** General Provisions   For the purpose of your Title V permit, the following section contains state-only enforceable terms and conditions. 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 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: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 6 submitted prior to actual transfer of ownership.

Condition 1-1: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 1-1.1: 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 5: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 5.1: The Department reserves the right to modify, suspend, or revoke this permit in accordance with 6NYCRR 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 modify, suspend, or revoke this permit in accordance with 6NYCRR 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, anyFacility DEC ID: 7351200030

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 7 provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

** ** Facility Level  

Condition 6: Submission of application for permit modification or renewal-REGION 7 HEADQUARTERS Applicable State Requirement: 6 NYCRR 621.6 (a)

Item 6.1: Submission of applications for permit modification or renewal are to be submitted to: NYSDEC Regional Permit Administrator Region 7 Headquarters Division of Environmental Permits 615 Erie Blvd West Syracuse, NY 13204-2400 (315) 426-7400Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 1 DRAFT Permit Under the Environmental Conservation Law (ECL)

ARTICLE 19: AIR POLLUTION CONTROL - TITLE V PERMIT

IDENTIFICATION INFORMATION

Permit Issued To:OSWEGO HARBOR POWER LLC 261 WASHINGTON BLVD OSWEGO, NY 13126

Facility: OSWEGO HARBOR POWER 261 WASHINGTON BLVD OSWEGO, NY 13126

Authorized Activity By Standard Industrial Classification Code: 4911 - ELECTRIC SERVICES

Permit Effective Date: Permit Expiration Date:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 2 DRAFT LIST OF CONDITIONS

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1-1 6 NYCRR 201-6.5 (a) (7): Fees 1-2 6 NYCRR 215.2: Open Fires - Prohibitions 1-3 6 NYCRR 202-1.1: Required Emissions Tests 23 6 NYCRR Subpart 201-6: Emission Unit Definition 1-4 6 NYCRR 211.1: Air pollution prohibited Emission Unit Level 47 6 NYCRR Subpart 201-6: Process Definition By Emission Unit 48 6 NYCRR Subpart 201-7: Emission Unit Permissible Emissions

EU=U-00005 1-5 6 NYCRR 227-2.6: Compliance Certification 1-6 6 NYCRR 227-2.6: Compliance Certification 1-7 6 NYCRR 249.3 (a): Compliance Certification 1-8 6 NYCRR 249.3 (a): Compliance Certification 1-9 6 NYCRR 249.3 (a): Compliance Certification 1-10 6 NYCRR 249.3 (a): Compliance Certification 1-11 6 NYCRR 249.3 (f): Compliance Certification

EU=U-00005,Proc=P53 55 : Compliance Certification 56 : Compliance Certification

EU=U-00006 1-12 6 NYCRR 227-2.6: Compliance Certification 1-13 6 NYCRR 227-2.6: Compliance Certification 1-14 6 NYCRR 249.3 (a): Compliance Certification 1-15 6 NYCRR 249.3 (a): Compliance Certification 1-16 6 NYCRR 249.3 (a): Compliance Certification 1-17 6 NYCRR 249.3 (a): Compliance Certification 1-18 6 NYCRR 249.3 (f): Compliance Certification

EU=U-00006,Proc=P63 68 : Compliance Certification 69 : Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 93 ECL 19-0301: Contaminant List 1-19 6 NYCRR 211.2: Visible Emissions Limited Emission Unit Level

EU=U-00005 1-20 6 NYCRR 227-2.5 (b): Compliance Demonstration 1-21 6 NYCRR 227-2.5 (c): Compliance Demonstration 1-22 6 NYCRR 227-2.5 (c): Compliance DemonstrationPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 3 DRAFT EU=U-00006 1-23 6 NYCRR 227-2.5 (b): Compliance Demonstration 1-24 6 NYCRR 227-2.5 (c): Compliance Demonstration 1-25 6 NYCRR 227-2.5 (c): Compliance Demonstration

EU=U-00009 1-26 6 NYCRR 227-2.5 (c): Compliance Demonstration

EU=U-00010 1-27 6 NYCRR 227-2.5 (c): Compliance DemonstrationPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 4 DRAFT FEDERALLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

NOTIFICATION OF GENERAL PERMITTEE OBLIGATIONS The items listed below are not subject to the annual compliance certification requirements under Title V. Permittees may also have other obligations under regulations of general applicability.

Item A: Em ergency Defens e - 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.

(c) This provision is in addition to any emergency or upset provision contained in any applicable requirement.

Item B: Public Access to Recordkeeping for Title V Facilities - 6 NYCRR 201-1. 10 (b) The Department will make available to the public any permit application, compliance plan, permit, and monitoring and compliance certification report pursuant to Section 503(e) of the Act, except for information entitled to confidential treatment pursuant to 6 NYCRR Part 616 - Public Access to records and Section 114(c) of the Act.Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 5 DRAFT Item C: Timely Application for the Renewal of Title V Permits - 6 NYCRR 201- 6.3 (a) (4) Owners and/or operators of facilities having an issued Title V permit shall submit a complete application at least 180 days, but not more than eighteen months, prior to the date of permit expiration for permit renewal purposes.
Item D: Certification by a Responsible Official - 6 NYCRR 201-6.3 (d) (12) Any application, form, report or compliance certification required to be submitted pursuant to the federally enforceable portions of this permit shall contain a certification of truth, accuracy and completeness by a responsible official. This certification shall state that based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

Item E: Requirement to Comply With All Conditions - 6 NYCRR 201-6.5 (a) (2) The permittee must comply with all conditions of the Title V facility permit. Any permit non-compliance constitutes a violation of the Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application.

Item F: Permit Revocation, Modification, Reopening, Reissuance or Termination, and Associated Information Submission Requirements - 6 NYCRR 201- 6.5 (a) (3) This permit may be modified, revoked, reopened and reissued, or terminated for cause. The filing of a request by the permittee for a permit modification, revocation and reissuance, or termination, or of a notification of planned changes or anticipated noncompliance does not stay any permit condition.

Item G: Cessation or Reduction of Permitted Activity Not a Defense - 6 NYCRR 201-6.5 (a) (5) It shall not be a defense for a permittee in an enforcement action to claim that a cessation or reduction in the permitted activity would have been necessary in order to maintain compliance with the conditions of this permit.

Item H: Property Rights - 6 NYCRR 201-6.5 (a) (6)

This permit does not convey any property rights of any sort or any exclusive privilege.Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 6 DRAFT Item I: Seve rability - 6 NYCRR 201-6.5 (a) (9)

If any provisions, parts or conditions of this permit are found to be invalid or are the subject of a challenge, the remainder of this permit shall continue to be valid.

Item J: Permit Shield - 6 NYCRR 201-6.5 (g)

All permittees granted a Title V facility permit shall be covered under the protection of a permit shield, except as provided under 6 NYCRR Subpart 201-6. Compliance with the conditions of the permit shall be deemed compliance with any applicable requirements as of the date of permit issuance, provided that such applicable requirements are included and are specifically identified in the permit, or the Department, in acting on the permit application or revision, determines in writing that other requirements specifically identified are not applicable to the major stationary source, and the permit includes the determination or a concise summary thereof. Nothing herein shall preclude the Department from revising or revoking the permit pursuant to 6 NYCRR Part 621 or from exercising its summary abatement authority. Nothing in this permit shall alter or affect the following:

i. The ability of the Department to seek to bring suit on behalf of the State of New York, or the Administrator to seek to bring suit on behalf of the United States, to immediately restrain any person causing or contributing to pollution presenting an imminent and substantial endangerment to public health, welfare or the environment to stop the emission of air pollutants causing or contributing to such pollution;

ii. The liability of a permittee of the Title V facility for any violation of applicable requirements prior to or at the time of permit issuance;

iii. The applicable requirements of Title IV of the Act;

iv. The ability of the Department or the Administrator to obtain information from the permittee concerning the ability to enter, inspect and monitor the facility.

Item K: Reopen ing for Cause - 6 NYCRR 201- 6.5 (i)

This Title V permit shall be reopened and revised under any of the following circumstances:

i. If additional applicable requirements under the Act become applicable where this permit's remaining term isPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 7 DRAFT three or more years, a reopening shall be completed not later than 18 months after promulgation of the applicable requirement. No such reopening is required if the effective date of the requirement is later than the date on which this permit is due to expire, unless the original permit or any of its terms and conditions has been extended by the Department pursuant to the provisions of Part 201-6.7 and Part 621.

ii. The Department or the Administrator determines that the permit contains a material mistake or that inaccurate statements were made in establishing the emissions standards or other terms or conditions of the permit.

iii. The Department or the Administrator determines that the Title V permit must be revised or reopened to assure compliance with applicable requirements.

iv. If the permitted facility is an "affected source" subject to the requirements of Title IV of the Act, and additional requirements (including excess emissions requirements) become applicable. Upon approval by the Administrator, excess emissions offset plans shall be deemed to be incorporated into the permit.

Proceedings to reopen and issue Title V facility permits shall follow the same procedures as apply to initial permit issuance but shall affect only those parts of the permit for which cause to reopen exists.

Reopenings shall not be initiated before a notice of such intent is provided to the facility by the Department at least thirty days in advance of the date that the permit is to be reopened, except that the Department may provide a shorter time period in the case of an emergency.

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 YorkPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 8 DRAFT (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.

MANDATORY FEDERALLY ENFORCEABLE PERMIT CONDITIONS SUBJECT TO ANNUAL CERTIFICATIONS AT ALL TIMES

The following federally enforceable permit conditions are mandatory for all Title V permits and are subject to annual compliance certification requirements at all times.

Condition 1-1: Fees Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (a) (7)

Item 1-1.1: The owner and/or operator of a stationary source shall pay fees to the Department consistent with the fee schedule authorized by ECL 72-0303.

Condition 1-2: Open Fires - Prohibitions Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 215.2

Item 1-2.1: Except as allowed by Title 6 NYCRR Section 215.3, no person shall burn, cause, suffer, allow or permit the burning of any materials in an open fire.

Item 1-2.2 Per Section 215.3, burning in an open fire, provided it is not contrary to other law or regulation, will be allowed as follows: (a) On-site burning in any town with a total population less than 20,000 of downed limbs and branches (including branches with attached leaves or needles) less than six inches in diameter and eight feet in length between May 15th and the following March 15th. For the purposes of this subdivision, the total population of a town shall include the population of any village or portion thereof located within the town. However, this subdivision shall not be construed to allow burning within any village. (b) Barbecue grills, maple sugar arches and similar outdoor cooking devices when actually usedPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 9 DRAFT for cooking or processing food. (c) Small fires used for cooking and camp fires provided that only charcoal or untreated wood is used as fuel and the fire is not left unattended until extinguished. (d) On-site burning of agricultural wastes as part of a valid agricultural operation on contiguous agricultural lands larger than five acres actively devoted to agricultural or horticultural use, provided such waste is actually grown or generated on those lands and such waste is capable of being fully burned within a 24-hour period. (e) The use of liquid petroleum fueled smudge pots to prevent frost damage to crops. (f) Ceremonial or celebratory bonfires where not otherwise prohibited by law, provided that only untreated wood or other agricultural products are used as fuel and the fire is not left unattended until extinguished. (g) Small fires that are used to dispose of a flag or religious item, and small fires or other smoke producing process where not otherwise prohibited by law that are used in connection with a religious ceremony. (h) Burning on an emergency basis of explosive or other dangerous or contraband materials by police or other public safety organization. (i) Prescribed burns performed according to Part 194 of this Title. (j) Fire training, including firefighting, fire rescue, and fire/arson investigation training, performed under applicable rules and guidelines of the New York State Department of State's Office of Fire Prevention and Control. For fire training performed on acquired structures, the structures must be emptied and stripped of any material that is toxic, hazardous or likely to emit toxic smoke (such as asbestos, asphalt shingles and vinyl siding or other vinyl products) prior to burning and must be at least 300 feet from other occupied structures. No more than one structure per lot or within a 300 foot radius (whichever is bigger) may be burned in a training exercise. (k) Individual open fires as approved by the Director of the Division of Air Resources as may be required in response to an outbreak of a plant or animal disease upon request by the commissioner of the Department of Agriculture and Markets, or for the destruction of invasive plant and insect species. (l) Individual open fires that are otherwise authorized under the environmental conservation law, or by rule or regulation of the Department.

MANDATORY FEDERALLY ENFORCEABLE PERMIT CONDITIONS SUBJECT TO ANNUAL CERTIFICATIONS ONLY IF APPLICABLE

The following federally enforceable permit conditions are mandatory for all Title V permits and are subject to annual compliance certification requirements only if effectuated during the reporting period. [NOTE: The corresponding annual compliance certification for those conditions not effectuated during the reporting period shall be specified as "not applicable".]

Condition 1-3: Required Emissions Tests Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 1-3.1: 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.Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 10 DRAFT The following conditions are subject to annual compliance certification requirements for Title V permits only.

Condition 23: Emission Unit Definition Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 23.1(From Mod 1): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00005 Emission Unit Description: Emission Unit U00005 consists of one steam generator, Unit 5, a Foster Wheeler boiler that supplies steam to a 850 MW turbine. Unit 5 fires 1.5 wt% sulfur residual oil (the federally-enforceable limit is 2.0 wt% sulfur residual oil). Beginning January 1, 2014 the BART sulfur limit will be 0.75 wt% (0.80 lb SO2/mmBtu). Particulate emissions are controlled with an electrostatic precipitator (S005C). NOx emissions are controlled with overfire air and flue gas recirculation. Flue gas from Unit 5 is vented through the No. 5 stack (00005). Unit 5 can be started up on either distillate oil or natural gas.
Building(s): 1

Item 23.2(From Mod 1): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00006 Emission Unit Description: Emission Unit U00006 consists of one steam generator, Unit 6, that provides steam to a turbine capable of producing 850 MW net of electricity. This unit fires 0.75% sulfur residual oil and is capable of producing up to 245 MW by firing natural gas. The federally enforceable sulfur limit is 0.80 lbs SO2/mmBtu which is equivalent to 0.75 wt% sulfur. Unit 6 is subject to 40 CFR Part 60, subpart D. Particulate emissions are controlled by an electrostatic precipitator (S006C). NOx emissions are controlled by overfire air and flue gas recirculation. Natural gas or distillate oil may be used to ignite the boiler during startup.

Building(s): 1Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 11 DRAFT Item 23.3(From Mod 1): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00009 Emission Unit Description: Emission Unit U00009 consists of a package boiler (Emission Source S0009) that is used for station heating. This unit is capable of firing either oil (residual and distillate) or natural gas. The maximum heat input is 78.3 mmBtu/hr when firing natural gas, and 74.9 mmBtu/hr when firing oil.

Building(s): 1

Item 23.4(From Mod 1): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00010 Emission Unit Description: Emission Unit U00010 consists of a model D370 boiler, manufactured by Volcano. The boiler is equipped with low NOx burners and meets the NOx RACT control requirements found in 227-2.4(c)(i). This boiler can fire either distillate oil or natural gas. The rated heat input on gas is 90.5 mmBtu/hr; the rated heat input on oil is 87.2 mmBtu/hr.

Building(s): 1

Item 23.5(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00007 Emission Unit Description: Emission Unit U00007consists of storage tanks 1-4 (S00T1, S00T2, S00T3, and S00T4, respectively). The capacity of each oil tank is 16,254,000 gallons. The tanks are not subject to 6 NYCRR Part 229 or 40 CFR 60 Subparts K, Ka, or Kb. The tanks are equipped with carbon adsorbers (S0T1C, S0T2C, S0T3C, and S0T4C) for odor control.

Item 23.6(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00008 Emission Unit Description: Emission Source U00008 is the feeder, on the waste water treatment plant (S0008), that delivers a caustic or lime solution.

Building(s): 2

Condition 1-4: Air pollution prohibited Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 211.1Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 12 DRAFT Item 1-4.1: 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. 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.

** ** Emission Unit Level  

Condition 47: Process Definition By Emission Unit Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 47.1(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00005 Process: P51 Source Classification Code: 1-01-004-01 Process Description: Process identification number P51 designates residual and distillate oil firing in Unit 5.

Emission Source/Control: S0005 - Combustion Design Capacity: 7,840 million Btu per hour

Emission Source/Control: S005C - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 47.2(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00005 Process: P52 Source Classification Code: 1-01-006-01 Process Description: Process identification number P52 designates natural gas firing in Unit 5.

Emission Source/Control: S0005 - Combustion Design Capacity: 7,840 million Btu per hour

Item 47.3(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00006 Process: P61 Source Classification Code: 1-01-004-01 Process Description:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 13 DRAFT Process identification number P61 designates residual oil firing in Unit 6. The boiler is subject to 40 CFR 60 Subpart D (NSPS). This process also allows co-firing of natural gas in the boiler.

Emission Source/Control: S0006 - Combustion Design Capacity: 7,840 million Btu per hour

Emission Source/Control: S006C - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 47.4(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00006 Process: P62 Source Classification Code: 1-01-006-01 Process Description: Process identification number P62 designates natural gas firing in Unit 6. This boiler is subject to 40 CFR 60 Subpart D (NSPS).

Emission Source/Control: S0006 - Combustion Design Capacity: 7,840 million Btu per hour

Item 47.5(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00009 Process: P91 Source Classification Code: 1-02-006-02 Process Description: Process identification number P91 identifies oil (residual and distillate) combustion in the Zurn package boiler.

Emission Source/Control: S0009 - Combustion Design Capacity: 78.3 million Btu per hour

Item 47.6(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00009 Process: P92 Source Classification Code: 1-02-005-01 Process Description: Process identification number P92 identifies natural gas combustion in the Zurn package boiler.

Emission Source/Control: S0009 - Combustion Design Capacity: 78.3 million Btu per hour

Item 47.7(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 14 DRAFT Emission Unit: U-00010 Process: GAS Source Classification Code: 1-01-007-02 Process Description: This process allows the use of natural gas to be fired in the Volcano D3 70 unit.

Emission Source/Control: S0010 - Combustion

Item 47.8(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00010 Process: OIL Source Classification Code: 1-01-007-02 Process Description: This process allows the use of distillate oil to be fired in the Volcano D3 70 unit.

Emission Source/Control: S0010 - Combustion

Item 47.9(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00005 Process: P53 Source Classification Code: 1-01-013-02 Process End Date: 8/16/2011 Process Description: Process identification number P53 designates the co-firing of Waste Fuel A (100,000 gallons/yr) with residual oil in Unit 5 (i.e., S0005). The firing of residual oil must meet the requirements as process P51.

Emission Source/Control: S0003 - Combustion Removal Date: 01/01/2012 Design Capacity: 1,015 million Btu per hour

Emission Source/Control: S0005 - Combustion Design Capacity: 7,840 million Btu per hour

Emission Source/Control: S003C - Control Removal Date: 01/01/2012 Control Type: SINGLE CYCLONE

Emission Source/Control: S005C - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 47.10(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00006 Process: P63 Source Classification Code: 1-01-013-02 Process End Date: 8/16/2011 Process Description: Process identification number P63 designates the co-firing of Waste Fuel A (100,000 gallons/yr) withPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 15 DRAFT residual oil in Unit 6 (i.e., S0006). The firing of residual oil must meet the requirements as process P61. Waste fuel a may also be co-fired with natural gas.

Emission Source/Control: S0006 - Combustion Design Capacity: 7,840 million Btu per hour

Emission Source/Control: S006C - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 47.11(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00007 Process: PT1 Source Classification Code: 3-90-900-06 Process Description: Process PT1 identifies storing residual oil in Storage Tank #1 with a capacity of 16,254,000 gallons.

Emission Source/Control: S0T1C - Control Control Type: ACTIVATED CARBON ADSORPTION

Emission Source/Control: S00T1 - Process Design Capacity: 16,254 1000 gallons

Item 47.12(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00007 Process: PT2 Source Classification Code: 3-90-900-06 Process Description: Process PT2 identifies storing residual oil in Storage Tank #2 with a capacity of 16,254,000 gallons.

Emission Source/Control: S0T2C - Control Control Type: ACTIVATED CARBON ADSORPTION

Emission Source/Control: S00T2 - Process Design Capacity: 16,254 1000 gallons

Item 47.13(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00007 Process: PT3 Source Classification Code: 3-90-900-06 Process Description: Process PT3 identifies storing residual oil in Storage Tank #3 with a capacity of 16,254,000 gallons.

Emission Source/Control: S0T3C - Control Control Type: ACTIVATED CARBON ADSORPTIONPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 16 DRAFT Emission Source/Control: S00T3 - Process Design Capacity: 16,254 1000 gallons

Item 47.14(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00007 Process: PT4 Source Classification Code: 3-90-900-06 Process Description: Process PT4 identifies storing residual oil in Storage Tank #4 with a capacity of 16,254,000 gallons.

Emission Source/Control: S0T4C - Control Control Type: ACTIVATED CARBON ADSORPTION

Emission Source/Control: S00T4 - Process Design Capacity: 16,254 1000 gallons

Item 47.15(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00008 Process: PLS Source Classification Code: 3-05-104-96 Process Description: Process PLS identifies the lime feeder process at the water treatment plant.

Emission Source/Control: S0008 - Process

Condition 48: Emission Unit Permissible Emissions Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-7

Item 48.1: The sum of emissions from all regulated processes specified in this permit for the emission unit cited shall not exceed the following Potential to Emit (PTE) rates for each regulated contaminant:

Emission Unit: U-00010

CAS No: 007446095 (From Mod 1) Name: SULFUR DIOXIDE PTE(s): 78,000 pounds per year

CAS No: 0NY210000 (From Mod 1) Name: OXIDES OF NITROGEN PTE(s): 78,000 pounds per year

Condition 1-5: Compliance Certification Effective for entire length of PermitPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 17 DRAFT Applicable Federal Requirement:6 NYCRR 227-2.6

Item 1-5.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Item 1-5.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This condition is valid on and after July 1, 2014.

the owner and operator of an emission source must:

(a) calculate all 24-hour daily heat input-weighted average NOx emission rates from block hourly arithmetic emission rate averages calculated by the CEMS and expressed in terms of pounds of NOx per mi llion Btu;

(b) demonstrate compliance with the appropriate emission limit under section 227-2.4 of this Subpart by using a CEMS for measuring NOx and calculating a 24-hour daily heat input-weighted average NOx emission rate. Facilities that are subject to 40 CFR part 75 will calculate their NOx emission rate using part 75 monitoring requirements. Facilities that are not subject to 40 CFR part 75 may calculate their NOx emission rate using either 40 CFR part 60, appendix A, method 19 or 40 CFR part 75. A 30-day rolling heat input-weighted average emission rate may be used to demonstrate compliance with the appropriate emission limit under section 227-2.4 of this Subpart from October 1st to April 30th for emission sources other than combustion turbines; and

(c) determine the 24-hour daily heat input-weighted average NOx emission rate based on the heat input-weighted average of the block hourly arithmetic average emission rates during each 24-hour daily period from 12:00 AM to 12:00 AM the following day using CEMS data. The block hourly heat input-weighted average emission rate must be calculated for each one-hour period starting with the period 12:00 AM to 1:00 AM and continuing through until the last period 11:00 PM to 12:00 AM; or, starting with the period 12:00 PM to 1:00 PM and continuing through the last period 11:00 AM to 12:00 PM. The 30-day rolling heat input-weighted average must be the average of the 24-hour daily heat input-weighted NOx emission rate.

(i) At a minimum, valid CEMS data must be obtained for 90Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 18 DRAFT percent of the operating hours in each calendar quarter that the subject facility is operating.

(ii) All valid CEMS data must be used in calculating emission rates even if the minimum data requirements of subparagraph (i) of this paragraph are not met.

(iii) The procedures under 40 CFR part 60, appendix B, Performance Specification 2; and any additional criteria specified by the department must be followed for the installation, evaluation, and operation of the CEMS.

(iv) Along with any specific additional data requirements mandated by the department for a particular emission source, annual recertifications, quarterly accuracy, and daily calibration drift tests must be performed in accordance with 40 CFR part 60, appendix F or 40 CFR part 75, as applicable.

(v) When NOx emissions data are not obtained because of CEMS downtime, emission data shall be obtained by using the 90th percentile value of all CEMS NOx emission data collected over the last 180 days. Alternatively the owner or operator of a facility subject to part CFR 75 may use 40 CFR part 75 data substitution procedures for periods when no valid CEMS data is available.

(4) CEMS recordkeeping and reporting requirements.

(i) The owner or operator of an emission source must notify the department of the planned initial start-up date of any new CEMS.

(ii) Protocols, reports, summaries, compliance plans and schedules, and any other information required to be submitted to the department under provisions of this Subpart must be sent (in either hardcopy or electronically) as follows:

(a) one copy to the Division of Air Resources, New York State Department of Environmental Conservation, 625 Broadway, Albany, NY 12233; and

(b) one copy to the regional air pollution control engineer at the appropriate regional office of the department.

(iii) Emissions, monitoring, and operating parameter records or measurements required by this Subpart, quarterly and annual summaries, and any additional parameters required by the department must be maintainedPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 19 DRAFT for at least five years and made available to the department upon request.

(iv) Following each calendar quarter, the owner or operator must tabulate and summarize applicable emissions, monitoring, and operating parameter measurements recorded during the preceding three months (including but not limited to type and amount of fuel burned on a daily basis, heat content of the fuel, total heating value of the fuel consumed on a daily basis, the actual NOx emission rate, the allowable NOx emission rate, and the summation of the emission sources included in a system averaging plan). These records must be submitted to the department within 30 days following the end of each calendar quarter in a format acceptable to the department and must include:

(a) the average NOx emission rates as specified under paragraph (3) of this subdivision. (With the exception of emission sources subject to paragraph (a)(4) of this Section, emission sources are to record and tabulate block hourly average emission rates, but do not need to included the block hourly average emission rates in the quarterly summaries);

(b) identification of the operating hours when NOx emissions data are not included in the calculation of the average emission rate and the reasons for not including that data; and

(c) the results of accuracy assessments as required by 40 CFR part 60, appendix F and any additional data quality information required by the department.

(v) The owner or operator of an emission source must submit the initial compliance test data, the performance evaluation of the CEMS found in 40 CFR part 60, appendix B, and the maximum heat input capacity.

Monitoring Frequency: CONTINUOUS Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-6: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-2.6

Item 1-6.1: The Compliance Certification activity will be performed for:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 20 DRAFT Emission Unit: U-00005

Item 1-6.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This permit condition is valid through June 30, 2014.

The owners and operators of this emission unit must monitor NOx emissions using continuous emissions monitors installed, operated and maintained in accordance with 40 CFR Part 75. Bias factors required under Part 75 are not required when determining compliance. Hourly emissions and heat input must be used to compute BTU-weighted 24 hour block averages or 30 - day rolling averages. During periods of CEM downtime, emissions data substituted pursuant to 40 CFR Part 75, Subpart D and Appendix C will not be used for purposes of NOx RACT compliance.

Emissions reports must be submitted no later than 30 days after the end of the calendar quarter. Such reports shall be in a format acceptable to the Department.

Monitoring Frequency: CONTINUOUS Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-7: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-7.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 0NY075-00-5 PM-10

Item 1-7.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This Unit is subject to the BART regional haze requirements. As a result of the required BART analysis,Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 21 DRAFT the current level of particulate control (ESP in its current configuration) has been determined to meet the BART requirements. Other conditions in this permit containing particulate and opacity requirements will be used to ensure compliance for the current control technology. Monitoring and reporting shall also be performed as per these other permit conditions.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 1-8: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-8.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 1-8.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: The owners and operators of this facility shall not purchase or obtain any fuel oil, for burning in this unit, that has a sulfur content exceeding 0.5 wt%. Exempted from this condition is any oil that was onsite or at the South Oswego Terminal facility (ID # 7-3542-00024) as of A ugust 4, 2010.

Process Material: FUEL OIL Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.5 percent by weight Monitoring Frequency: PER DELIVERY Averaging Method: MAXIMUM - NOT TO BE EXCEEDED AT ANY TIME (INSTANTANEOUS/DISCRETE OR GRAB) Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

Condition 1-9: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 22 DRAFT Item 1-9.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 1-9.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This Unit is subject to the BART regional haze requirements. As a result of the required BART analysis, a limit for SO2 emissions has been established.

On and after January 1, 2014, this Emission unit is limited to burning fuel with a sulfur content of no more than 0.75 wt%. The owners and operators of this unit will comply with an equivalent emissions limit, 0.80 lb SO2/mmBtu based on a 3-hour rolling average.

SO2 emissions will be monitored and recorded continuously using continuous emissions monitors installed, operated and maintained in accordance with 40 CFR Part 75 and the Acid Rain CEM monitoring Plan. The bias factors need not be applied to the SO2 emissions rate determination.

The owners and operators of this unit must report to the DEC emissions of SO2 on a calendar quarter basis. Such reports must be submitted in a format acceptable to the Department no later than 30 days after the end of each quarter. For each period when emissions exceed the allowable limit, the owners and operators must report the magnitude of the exceedance, the duration of the exceedance, the cause of the exceedance and the corrective action taken to correct the exceedance.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Parameter Monitored: SULFUR DIOXIDE Upper Permit Limit: 0.80 pounds per million Btus Reference Test Method: 40 CFR 75 Monitoring Frequency: CONTINUOUS Averaging Method: 3-HOUR ROLLING AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-10: Compliance CertificationPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 23 DRAFT Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-10.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-10.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: This Unit is subject to the BART regional haze requirements. As a result of the required BART analysis, a determination was made that an economically feasible control option, beyond current control, does not exist for this unit as it currently operates. An emission limitation has been established below the threshold that would make an additional control option economically feasible. This emission limitation has also been established to cover the economic feasibility threshold for the 6 NYCRR Part 227-2 NOx RACT control requirements that are required to be in place by July 1, 2014.

On and after January 1, 2014, this Emission unit is limited to emitting no more than 383 tons of NOx per year, based on a 12 month rolling total. The owners and operators of this emission unit shall calculate monthly and 12 month totals for each calendar month. The CEM data already required to be recorded for this emission unit shall be used to calculate the monthly and 12 month totals.

Parameter Monitored: OXIDES OF NITROGEN Upper Permit Limit: 383 tons per year Monitoring Frequency: MONTHLY Averaging Method: 12-month 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 1-11: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (f)Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 24 DRAFT Item 1-11.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005

Item 1-11.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The permit conditions (including monitoring and reporting) in this permit for NOx, SO2, and/or PM10 established under Part 249, are based on New York's Best Available Retrofit Technology (BART) Rule (6 NYCRR Part 249), are effective on the date of this permit's issuance, and are state-enforceable. Federal enforceability of these facility-specific permit conditions is effective on the date on which the requirements contained in these permit conditions, as submitted to EPA as a revision to New York State's Implementation Plan for Regional Haze, are published in the Federal Register.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 55: Compliance Certification Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 55.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005 Process: P53

Item 55.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The facility owner or operator is allowed in Unit 5 to burn 100,000 gallons of Waste Fuel A annually that meets the specifications for lead (no greater than 250 ppm), PCBs (less than 50 ppm), halogens (less than 1,000 ppm), and gross heat content (equal to or greater than 125,000 BTU/gallon). Sampling and analysis of waste fuel must be carried out in accordance with methods acceptable to the Department. All Waste Fuel A must be generated on thePermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 25 DRAFT Oswego Harbor Power property and none shall be imported.

Records of waste fuels blended and burned at Oswego Harbor Power shall be maintained recording quantity of waste burned, date sampling and analysis was performed, and date waste was transferred to day tank.

The amount of waste fuel burned must be reported semi-annually and records of waste fuel analysis must be presented to the Department upon request.

Reference Test Method: See description. Monitoring Frequency: PER BATCH OF PRODUCT/RAW MATERIAL CHANGE Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2010. Subsequent reports are due every 6 calendar month(s).

Condition 56: Compliance Certification Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 56.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00005 Process: P53

Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDE

Item 56.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: The facility owner or operator is allowed to burn Waste Fuel A in Unit 5. The combustion efficiency must be at or greater than 99.0% while burning waste fuel A.

Within 120 days of the issue date of this renewal permit, a demonstration must be made that the combustion efficiency of Unit 5 is at least 99.0% while burning Waste Fuel A. A protocol for making such demonstration must be submitted at least 30 days prior to the demonstration. A report of the demonstration results must be made within 60 days of the demonstration in accordance with 6NYCRR PartPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 26 DRAFT 202-1. If requested, the Department may allow alternate timeframes for this demonstration.

Work Practice Type: PARAMETER OF PROCESS MATERIAL Process Material: WASTE OIL Parameter Monitored: COMBUSTION EFFICIENCY Lower Permit Limit: 99.0 percent Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: MINIMUM - NOT TO FALL BELOW STATED VALUE AT ANY TIME Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE

Condition 1-12: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-2.6

Item 1-12.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Item 1-12.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This permit condition is valid through June 30, 2014.

The owners and operators of this emission unit must monitor NOx emissions using continuous emissions monitors installed, operated and maintained in accordance with 40 CFR Part 75. Bias factors required under Part 75 are not required when determining compliance. Hourly emissions and heat input must be used to compute BTU-weighted 24 hour block averages or 30 - day rolling averages. During periods of CEM downtime, emissions data substituted pursuant to 40 CFR Part 75, Subpart D and Appendix C will not be used for purposes of NOx RACT compliance.

Emissions reports must be submitted no later than 30 days after the end of the calendar quarter. Such reports shall be in a format acceptable to the Department.

Monitoring Frequency: CONTINUOUS Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 27 DRAFT Condition 1-13: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-2.6

Item 1-13.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Item 1-13.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This condition is valid on and after July 1, 2014.

the owner and operator of an emission source must:

(a) calculate all 24-hour daily heat input-weighted average NOx emission rates from block hourly arithmetic emission rate averages calculated by the CEMS and expressed in terms of pounds of NOx per mi llion Btu;

(b) demonstrate compliance with the appropriate emission limit under section 227-2.4 of this Subpart by using a CEMS for measuring NOx and calculating a 24-hour daily heat input-weighted average NOx emission rate. Facilities that are subject to 40 CFR part 75 will calculate their NOx emission rate using part 75 monitoring requirements. Facilities that are not subject to 40 CFR part 75 may calculate their NOx emission rate using either 40 CFR part 60, appendix A, method 19 or 40 CFR part 75. A 30-day rolling heat input-weighted average emission rate may be used to demonstrate compliance with the appropriate emission limit under section 227-2.4 of this Subpart from October 1st to April 30th for emission sources other than combustion turbines; and

(c) determine the 24-hour daily heat input-weighted average NOx emission rate based on the heat input-weighted average of the block hourly arithmetic average emission rates during each 24-hour daily period from 12:00 AM to 12:00 AM the following day using CEMS data. The block hourly heat input-weighted average emission rate must be calculated for each one-hour period starting with the period 12:00 AM to 1:00 AM and continuing through until the last period 11:00 PM to 12:00 AM; or, starting with the period 12:00 PM to 1:00 PM and continuing through the last period 11:00 AM to 12:00 PM. The 30-day rolling heat input-weighted average must be the average of the 24-hourPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 28 DRAFT daily heat input-weighted NOx emission rate.

(i) At a minimum, valid CEMS data must be obtained for 90 percent of the operating hours in each calendar quarter that the subject facility is operating.

(ii) All valid CEMS data must be used in calculating emission rates even if the minimum data requirements of subparagraph (i) of this paragraph are not met.

(iii) The procedures under 40 CFR part 60, appendix B, Performance Specification 2; and any additional criteria specified by the department must be followed for the installation, evaluation, and operation of the CEMS.

(iv) Along with any specific additional data requirements mandated by the department for a particular emission source, annual recertifications, quarterly accuracy, and daily calibration drift tests must be performed in accordance with 40 CFR part 60, appendix F or 40 CFR part 75, as applicable.

(v) When NOx emissions data are not obtained because of CEMS downtime, emission data shall be obtained by using the 90th percentile value of all CEMS NOx emission data collected over the last 180 days. Alternatively the owner or operator of a facility subject to part CFR 75 may use 40 CFR part 75 data substitution procedures for periods when no valid CEMS data is available.

(4) CEMS recordkeeping and reporting requirements.

(i) The owner or operator of an emission source must notify the department of the planned initial start-up date of any new CEMS.

(ii) Protocols, reports, summaries, compliance plans and schedules, and any other information required to be submitted to the department under provisions of this Subpart must be sent (in either hardcopy or electronically) as follows:

(a) one copy to the Division of Air Resources, New York State Department of Environmental Conservation, 625 Broadway, Albany, NY 12233; and

(b) one copy to the regional air pollution control engineer at the appropriate regional office of the department.

(iii) Emissions, monitoring, and operating parameterPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 29 DRAFT records or measurements required by this Subpart, quarterly and annual summaries, and any additional parameters required by the department must be maintained for at least five years and made available to the department upon request.

(iv) Following each calendar quarter, the owner or operator must tabulate and summarize applicable emissions, monitoring, and operating parameter measurements recorded during the preceding three months (including but not limited to type and amount of fuel burned on a daily basis, heat content of the fuel, total heating value of the fuel consumed on a daily basis, the actual NOx emission rate, the allowable NOx emission rate, and the summation of the emission sources included in a system averaging plan). These records must be submitted to the department within 30 days following the end of each calendar quarter in a format acceptable to the department and must include:

(a) the average NOx emission rates as specified under paragraph (3) of this subdivision. (With the exception of emission sources subject to paragraph (a)(4) of this Section, emission sources are to record and tabulate block hourly average emission rates, but do not need to included the block hourly average emission rates in the quarterly summaries);

(b) identification of the operating hours when NOx emissions data are not included in the calculation of the average emission rate and the reasons for not including that data; and

(c) the results of accuracy assessments as required by 40 CFR part 60, appendix F and any additional data quality information required by the department.

(v) The owner or operator of an emission source must submit the initial compliance test data, the performance evaluation of the CEMS found in 40 CFR part 60, appendix B, and the maximum heat input capacity.

Monitoring Frequency: CONTINUOUS Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-14: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 30 DRAFT Item 1-14.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 1-14.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This Unit is subject to the BART regional haze requirements. As a result of the required BART analysis, a limit for SO2 emissions has been established.

On and after January 1, 2014, this Emission unit is limited to burning fuel with a sulfur content of no more than 0.75 wt%. This emission unit is currently subject to this limit for liquid fuels under 40 CFR 60.43. The owners and operators of this unit will comply with an equivalent emissions limit, 0.80 lb SO2/mmBtu based on a 3-hour rolling average.

SO2 emissions will be monitored and recorded continuously using continuous emissions monitors installed, operated and maintained in accordance with 40 CFR Part 75 and the Acid Rain CEM monitoring Plan. The bias factors need not be applied to the SO2 emissions rate determination.

The owners and operators of this unit must report to the DEC emissions of SO2 on a calendar quarter basis. Such reports must be submitted in a format acceptable to the Department no later than 30 days after the end of each quarter. For each period when emissions exceed the allowable limit, the owners and operators must report the magnitude of the exceedance, the duration of the exceedance, the cause of the exceedance and the corrective action taken to correct the exceedance.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Parameter Monitored: SULFUR DIOXIDE Upper Permit Limit: 0.80 pounds per million Btus Reference Test Method: 40 CFR 75 Monitoring Frequency: CONTINUOUS Averaging Method: 3-HOUR ROLLING AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 31 DRAFT Condition 1-15: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-15.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE

Item 1-15.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: The owners and operators of this facility shall not purchase or obtain any fuel oil, for burning in this unit, that has a sulfur content exceeding 0.5 wt%. Exempted from this condition is any oil that was onsite or at the South Oswego Terminal facility (ID # 7-3542-00024) as of A ugust 4, 2010.

Process Material: FUEL OIL Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.5 percent by weight Monitoring Frequency: PER DELIVERY Averaging Method: MAXIMUM - NOT TO BE EXCEEDED AT ANY TIME (INSTANTANEOUS/DISCRETE OR GRAB) Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

Condition 1-16: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-16.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-16.2: Compliance Certification shall include the following monitoring:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 32 DRAFT Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: This Unit is subject to the BART regional haze requirements. As a result of the required BART analysis, a determination was made that an economically feasible control option, beyond current control, does not exist for this unit as it currently operates. An emission limitation has been established below the threshold that would make an additional control option economically feasible. This emission limitation has also been established to cover the economic feasibility threshold for the 6 NYCRR Part 227-2 NOx RACT control requirements that are required to be in place by July 1, 2014.

On and after January 1, 2014, this Emission unit is limited to emitting no more than 665 tons of NOx per year, based on a 12 month rolling total. The owners and operators of this emission unit shall calculate monthly and 12 month totals for each calendar month. The CEM data already required to be recorded for this emission unit shall be used to calculate the monthly and 12 month totals.

Parameter Monitored: OXIDES OF NITROGEN Upper Permit Limit: 665 tons per year Monitoring Frequency: MONTHLY Averaging Method: 12-month 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 1-17: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 1-17.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 0NY075-00-5 PM-10

Item 1-17.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This Unit is subject to the BART regional hazePermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 33 DRAFT requirements. As a result of the required BART analysis, the current level of particulate control (ESP in its current configuration) has been determined to meet the BART requirements. Other conditions in this permit containing particulate and opacity requirements will be used to ensure compliance for the current control technology. Monitoring and reporting shall also be performed as per these other permit conditions.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 1-18: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (f)

Item 1-18.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006

Item 1-18.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The permit conditions (including monitoring and reporting) in this permit for NOx, SO2, and/or PM10 established under Part 249, are based on New York's Best Available Retrofit Technology (BART) Rule (6 NYCRR Part 249), are effective on the date of this permit's issuance, and are state-enforceable. Federal enforceability of these facility-specific permit conditions is effective on the date on which the requirements contained in these permit conditions, as submitted to EPA as a revision to New York State's Implementation Plan for Regional Haze, are published in the Federal Register.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 68: Compliance Certification Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 68.1: The Compliance Certification activity will be performed for:Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 34 DRAFT Emission Unit: U-00006 Process: P63

Item 68.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The facility owner or operator is allowed in Unit 6 to burn 100,000 gallons of Waste Fuel A annually that meets the specifications for lead (no greater than 250 ppm), PCBs (less than 50 ppm), halogens (less than 1,000 ppm), and gross heat content (equal to or greater than 125,000 BTU/gallon). Sampling and analysis of waste fuel must be carried out in accordance with methods acceptable to the Department. All Waste Fuel A must be generated on the Oswego Harbor Power property and none shall be imported.

Records of waste fuels blended and burned at Oswego Harbor Power shall be maintained recording quantity of waste burned, date sampling and analysis was performed, and date waste was transferred to day tank.

The amount of waste fuel burned must be reported semi-annually and records of waste fuel analysis must be presented to the Department upon request.

Reference Test Method: See description. Monitoring Frequency: PER BATCH OF PRODUCT/RAW MATERIAL CHANGE Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2010. Subsequent reports are due every 6 calendar month(s).

Condition 69: Compliance Certification Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 69.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00006 Process: P63

Regulated Contaminant(s): CAS No: 000630-08-0 CARBON MONOXIDEPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 35 DRAFT Item 69.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: The facility owner or operator is allowed to burn Waste Fuel A in Unit 6. The combustion efficiency must be at or greater than 99.0% while burning waste fuel A.

Within 120 days of the issue date of this renewal permit, a demonstration must be made that the combustion efficiency of Unit 6 is at least 99.0% while burning Waste Fuel A. A protocol for making such demonstration must be submitted at least 30 days prior to the demonstration. A report of the demonstration results must be made within 60 days of the demonstration in accordance with 6NYCRR Part 202-1. If requested, the Department may allow alternate timeframes for this demonstration.

Work Practice Type: PARAMETER OF PROCESS MATERIAL Process Material: WASTE OIL Parameter Monitored: COMBUSTION EFFICIENCY Lower Permit Limit: 99.0 percent Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: MINIMUM - NOT TO FALL BELOW STATED VALUE AT ANY TIME Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 36 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: 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 applicable requirements and are not subject to compliance certification requirements unless otherwise noted or required under 6 NYCRR Part 201.

Condition 93: Contaminant List Effective between the dates of 05/17/2010 and Permit Expiration Date

Applicable State Requirement:ECL 19-0301

Item 93.1: Emissions of the following contaminants are subject to contaminant specific requirements in this permit(emission limits, control requirements or compliance monitoring conditions).

CAS No: 007446-09-5 Name: SULFUR DIOXIDEPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 37 DRAFT CAS No: 0NY035-16-0 Name: SULFUR (S 035)

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

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

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

Condition 1-19: Visible Emissions Limited Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 211.2

Item 1-19.1: 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.

** ** Emission Unit Level ****

Condition 1-20: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5 (b)

Item 1-20.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-20.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This method can be used for NOx RACT compliance through June 30, 2014. After this date other methods established in this permit must be used.

Part 227-2.5(b) allows system-wide NOx averaging. Oswego Harbor Power must comply with the Btu weighted NRG system-wide averaging plan dated February 24, 2000.Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 38 DRAFT Pursuant to Part 227-2.6(b)(5), Oswego Harbor Power will use continuous emission monitors to certify compliance. The CEMs must be installed, operated and maintained in accordance with 40 CFR Part 75.

During the ozone season, May 1 - September 15, compliance must be demonstrated on a 24 hour average. During all other times, compliance will be on a 30 day rolling average.
Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-21: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-21.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-21.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an emission limitation has been established below the threshold that would make an additional control option economically feasible. This emission limitation has also been established to cover the economic feasibility threshold for the 6 NYCRR Part 249 BART control requirements that are required to be in place by January 1, 2014.

On and after January 1, 2014, this Emission unit is limited to emitting no more than 383 tons of NOx per year,Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 39 DRAFT based on a 12 month rolling total. The owners and operators of this emission unit shall calculate monthly and 12 month totals for each calendar month. The CEM data already required to be recorded for this emission unit shall be used to calculate the monthly and 12 month totals.

Parameter Monitored: OXIDES OF NITROGEN Upper Permit Limit: 383 tons per year Monitoring Frequency: MONTHLY Averaging Method: 12-month 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 1-22: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-22.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00005

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-22.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This permit condition applies on and after July 1, 2014.

A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an alternative NOx RACT limit has been developed for this unit.

Unit 5 (emission unit U-00005) is limited to 0.25 lb NOx/mmBtu on a 24 hour heat input weighted average basis, regardless of fuel type. During the period October 1st to April 30th, compliance may be demonstrated using a 30-day rolling heat input weighted average. Emissions must be continuously monitored using monitoring equipment thatPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 40 DRAFT meets the requirements of 40 CFR 75.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Upper Permit Limit: 0.25 pounds per million Btus Reference Test Method: 40 CFR 75 Monitoring Frequency: CONTINUOUS Averaging Method: AVERAGING METHOD - SEE MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-23: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5 (b)

Item 1-23.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-23.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This method can be used for NOx RACT compliance through June 30, 2014. After this date other methods established in this permit must be used.

Part 227-2.5(b) allows system-wide NOx averaging. Oswego Harbor Power must comply with the Btu weighted NRG system-wide averaging plan dated February 24, 2000. Pursuant to Part 227-2.6(b)(5), Oswego Harbor Power will use continuous emission monitors to certify compliance. The CEMs must be installed, operated and maintained in accordance with 40 CFR Part 75.

During the ozone season, May 1 - September 15, compliance must be demonstrated on a 24 hour average. During all other times, compliance will be on a 30 day rolling average.
Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 41 DRAFT Condition 1-24: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-24.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-24.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This permit condition applies on and after July 1, 2014.

A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an alternative NOx RACT limit has been developed for this unit.

Unit 6 (emission unit U-00006) is limited to 0.22 lb NOx/mmBtu on a 24 hour heat input weighted average basis, regardless of fuel type. During the period October 1st to April 30th, compliance may be demonstrated using a 30-day rolling heat input weighted average. Emissions must be continuously monitored using monitoring equipment that meets the requirements of 40 CFR 75.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Upper Permit Limit: 0.22 pounds per million Btus Reference Test Method: 40 CFR 75 Monitoring Frequency: CONTINUOUS Averaging Method: AVERAGING METHOD - SEE MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 1-25: Compliance Demonstration Effective for entire length of PermitPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 42 DRAFT Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-25.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00006

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-25.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an emission limitation has been established below the threshold that would make an additional control option economically feasible. This emission limitation has also been established to cover the economic feasibility threshold for the 6 NYCRR Part 249 BART control requirements that are required to be in place by January 1, 2014.

On and after January 1, 2014, this Emission unit is limited to emitting no more than 665 tons of NOx per year, based on a 12 month rolling total. The owners and operators of this emission unit shall calculate monthly and 12 month totals for each calendar month. The CEM data already required to be recorded for this emission unit shall be used to calculate the monthly and 12 month totals.

Parameter Monitored: OXIDES OF NITROGEN Upper Permit Limit: 665 tons per year Monitoring Frequency: MONTHLY Averaging Method: 12-month 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 1-26: Compliance Demonstration Effective for entire length of PermitPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 43 DRAFT Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-26.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00009

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-26.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This permit condition applies on and after July 1, 2014.

A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an alternative NOx RACT limit has been developed for this unit.

Unit 9 (emission unit U-00009) is limited to 0.135 lb NOx/mmBtu on a one hour heat input weighted average basis, regardless of fuel type. A compliance test must be performed within 90 days of the July 1, 2014 compliance date. The requirements of 6 NYCRR Part 202-1 must be followed. A compliance test protocol must be submitted at least 30 days prior to the test; the conditions of the testing and the locations of the sampling devices must be acceptable to the Department; and the test schedule must be coordinated with the Department, so that a Department representative has the opportunity to witness the test. A test report must be submitted no later than 60 days after completion of the test.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Upper Permit Limit: 0.135 pounds per million Btus Reference Test Method: Method 7, 7E or 19 as appropriate Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE

Condition 1-27: Compliance Demonstration Effective for entire length of PermitPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 44 DRAFT Applicable State Requirement:6 NYCRR 227-2.5 (c)

Item 1-27.1: The Compliance Demonstration activity will be performed for:

Emission Unit: U-00010

Regulated Contaminant(s): CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-27.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This permit condition applies on and after July 1, 2014.

A NOx RACT analysis was performed to determine the technical and economic feasibility of adding control technologies to meet the control requirements of 6 NYCRR Part 227-2.4. A determination was made for this unit that no additional technically feasible controls were economically feasible at the capacity this unit has been running. In accordance with the provisions of 6 NYCRR Part 227-2.5(c), an alternative NOx RACT limit has been developed for this unit.

Unit 10 (emission unit U-00010) is limited to 0.10 lb NOx/mmBtu on a one hour heat input weighted average basis, regardless of fuel type. A compliance test must be performed within 90 days of the July 1, 2014 compliance date. The requirements of 6 NYCRR Part 202-1 must be followed. A compliance test protocol must be submitted at least 30 days prior to the test; the conditions of the testing and the locations of the sampling devices must be acceptable to the Department; and the test schedule must be coordinated with the Department, so that a Department representative has the opportunity to witness the test. A test report must be submitted no later than 60 days after completion of the test.

Manufacturer Name/Model Number: CEM meeting 40 CFR 75 requirements Upper Permit Limit: 0.10 pounds per million Btus Reference Test Method: Method 7, 7E or 19 as appropriate Monitoring Frequency: SINGLE OCCURRENCE Averaging Method: 1-HOUR AVERAGE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 7-3512-00030/00023 Facility DEC ID: 7351200030

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 45 DRAFT