PREVENTION OF SIGNIFICANT DETERIORATION

PERMIT ISSUED PURSUANT TO THE

REQUIREMENTS AT 40 CFR § 52.21

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 9

PSD PERMIT NUMBER: SAC 03-01

PERMITTEE: Knauf Insulation GmbH

One Knauf Drive Shelbyville, IN 46176

FACILITY LOCATION: 3100 Ashby Road

Shasta Lake, California 96019

This revised Permit is issued pursuant to the Prevention of Significant Deterioration (PSD) requirements of the Clean Air Act, as amended, 42 U.S.C. §§ 7401 - 7671, et seq. Knauf

Insulation GmbH (Knauf) is granted this revised PSD Permit as described herein, in accordance

with the permit application (and plans submitted with the permit application), federal regulations governing the Prevention of Significant Deterioration of air quality (40 CFR § 52.21), and other

terms and conditions set forth in this revised PSD Permit.

Failure to comply with any condition or term set forth in this PSD Permit is subject to

enforcement action pursuant to Section 113 of the Clean Air Act.

This revised PSD Permit does not relieve the Permittee from the responsibility to comply with

any other applicable provisions of the Clean Air Act and other federal or Shasta County Air Quality Management District requirements.

This permit becomes effective immediately.

Date Director, Air DivisionKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 2 of 21 TABLE OF CONTENTS

ABBREVIATIONS & ACRONYMS .......................................................................................... 3

FACILITY DES CRIPTION ........................................................................................................ 4

EQUIPMENT LIST ................................................................................................................ ...... 4

GENERAL PERMIT CONDITIONS ......................................................................................... 5

RAW MATERIAL HANDLING & MIXING OPERATING CONDITIONS ........................ 9

MOLTEN GLASS PRODUCTION OPERATING CONDITIONS ...................................... 10

FIBERGLASS FORMING/CURING/COOLIN G OPERATING CONDITIONS ............... 14

FIBERGLASS TRIMMING & PACKAGING OPERATING CONDITIONS .................... 20Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 3 of 21 ABBREVIATIONS & ACRONYMS

Amps Ampere ACFM Actual cubic feet per minute BACT Best Available Control Technology CEM Continuous Emission Monitoring CFR Code of Federal Regulations CMS Continuous Monitoring System

CO Carbon monoxide DSCFM Dry standard cubic feet per minute EPA United States Environmental Protection Agency, Region IX

° F degrees Fahrenheit

g grams gph gallons per hour GPM gallons per minute

HAP Hazardous Air Pollutant

in H 2 O inches of water

hr hour kg kilogram

kV kilovolt

kW kilowatt lb pound

min Minute NOx Nitrogen Oxides

NO 2 Nitrogen Dioxide

NSPS New Source Performance Standard

NSR New Source Review Permittee Knauf Insulation, GmbH

PM Particulate Matter

PM10 Particulate matter less than 10 microns in diameter ppm parts per million PSD Prevention of Significant Deterioration psia pounds per square inch absolute

SO 2 Sulfur dioxide tpd tons of glass produced or pulled per operating day TSP Total suspended particulate VOC Volatile organic compoundsKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 4 of 21 FACILITY DESCRIPTION

This PSD permit is an amendment to the PSD permit issued on March 14, 2000, to the Knauf Insulation GmbH (Knauf) facility located in Shasta Lake, California. The PSD permit was amended on May 11, 2006 and May 7, 2007, with a further administrative amendment on December 13, 2010.

The fiberglass manufacturing operations at Knauf consist of the following: (1) raw materials handling and mixing; (2) molten glass production; (3) glass fiber forming, curing, and cooling; and (4) fiberglass trimming and packaging.

The raw materials handling and mixing operations consist of storage bins and tanks that are used to store materials which are used to produce the fiberglass insulation. Emissions from this operation consist primarily of particulate matter, which are captured in dust collectors within the facility and are not vented to the outside air.

Molten glass production is achieved using an electric glass melting furnace that has a current production capacity of 225 tons of glass pulled per day (tpd). Emissions from the furnace are

vented to the Furnace Stack.

The forming, curing, and cooling operations make up the manufacturing line where emissions

are vented to the Main Stack.

Emissions from the fiberglass trimming and pack aging operations are also captured in dust collectors which are vented within the facility and not to the outside air.

EQUIPMENT LIST

Raw Materials Handling and Mixing One (1) Raw Material Unloading Dust Collector Three (3) Sand Bins Dust Collectors Two (2) Consumer Cullet Bin Dust Collectors One (1) Dolomite Bin Dust Collector One (1) Limestone Bin Dust Collector One (1) (Spare) Bin Dust Collector One (1) Borax Bin Dust Collector One (1) Soda Ash Bin Dust Collector One (1) Feldspar Bin Dust Collector One (1) Knauf Cullet Dust Collector One (1) Weigh Scales/Conveyor Dust Collector One (1) Check Scale/Batch Mixer Dust Collector One (1) Day Bin #1 Dust Collector One (1) Day Bin #2 Dust Collector One (1) Liquid Urea Tank Two (2) Phenolic Resin Tanks Two (2) Resin-Urea Premix Tanks One (1) Outdoor Mineral Oil Tank One (1) Outdoor Aqueous Ammonia Tank Two (2) Ammonium Sulfate Mix Tanks One (1) Organosilane Weigh Tank One (1) Binder Mix Tank Two (2) Binder Supply Hold TanksKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 5 of 21 Molten Glass Production 225 Tons/Day Molten Glass Production Electric Glass Melting Furnace One (1) 25,800 ACFM Custom System Dual Chamber Dust Collector (Model WP238-10) Two (2) 15 MMBtu North American Burner Systems (Model 8520) One Marley NC Series Cooling Tower, Serial No. 169921-001

Fiberglass Forming/Curing/Cooling One (1) Natural Gas-Fired Forming Section One (1) Natural Gas-Fired Curing Oven w/ low NOx/CO Burners One (1) Volatile Organic Compound Binder Application Process Six (6) 10” P Venturi Scrubbers on Bonded Wool Forming Line One (1) 10” P Venturi Scrubber on Blowing Wool Forming Line One (1) 400,000 ACFM, 600 GPM Wet Electrostatic Precipitator One (1) Venturi Scrubber on Cooling Line Two (2) Thermal Oxidizers (with low NOx/CO Burners) on Curing Oven One (1) Regenerative Thermal Oxidizer on Curing Oven

Fiberglass Trimming and Packaging One (1) 9874 ACFM Trimming-Packaging Cyclone (1) & Dust Collector Assembly One (1) 9874 ACFM Class B Blowing Wool Cyclones (2) & Dust Collector Assembly One (1) 15,708 ACFM Class A Blowing Wool North Dust Collector Assembly One (1) 15,708 ACFM Class A Blowing Wool Center Dust Collector Assembly Five (5) High Density Filter Modules One (1) 10,000 ACFM Class A Summit Wool Production Condenser One (1) 10,000 ACFM Class A Premier Tech Refeed Condenser

GENERAL PERMIT CONDITIONS

1. Permit Notification Requirements:

The Permittee shall notify EPA in writing or by electronic mail of the date upon which initial performance tests will commence, in accordance with the provisions of this PSD Permit, postmarked not less than 30 days prior to such date. Notification may be provided with the submittal of the performance test protocol(s) required in this PSD permit.

2. Facility Operation:

a. At all times, including periods of startup, shutdown and malfunction, the Permittee shall, maintain and operate the facility including associated air pollution control equipment in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptableKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 6 of 21 operating and maintenance procedures are being used will be based on information available to the EPA which may include, but is not limited to, performance tests, monitoring results, review of operating maintenance procedures and inspection of the source.

b. The operating staff with management authority at this facility shall be advised of and be familiar with all the conditions of this PSD permit.

3. Malfunction Reporting:

a. The Permittee shall notify EPA by telephone, facsimile, or electronic mail at r9.aeo@epa.gov within two (2) working days following the discovery of any failure of air pollution control equipment, process equipment, or of a process to operate in a normal manner, which results in an increase in emissions above the

allowable emission limits stated in Conditions 22 and 43 of this Permit.

b. In addition, the Permittee shall notify EPA in writing or electronic mail within fifteen (15) days of any such failure described under Condition 3.a. of this PSD Permit. The notification shall include a description of the malfunctioning equipment or abnormal operation, the date of the initial malfunction, the period of time over which emissions were increased due to the failure, the cause of the failure, the estimated resultant emissions in excess of the emission limitations contained in this PSD permit, and the methods utilized to mitigate emissions and restore normal operations.

c. Compliance with this malfunction notification provision shall not excuse or otherwise constitute a defense to any violation of this permit or any law or regulation such malfunction may cause.

4. Right of Entry:

The EPA Regional Administrator, and/or an authorized representative, upon the presentation of credentials, shall be permitted:

a. To enter the premises where the source is located or where any records are required to be kept under the terms and conditions of this PSD Permit; and

b. At reasonable times to have access to and to copy any records required to be kept under the terms and conditions of this PSD Permit; and

c. To inspect any equipment, operation, or method subject to requirements in this PSD Permit; andKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 7 of 21 d. To sample emissions from any and all emission sources within the facility.

5. Transfer of Ownership:

In the event of any changes in control or ownership of the facilities to be constructed and operated, this PSD Permit shall be binding on all subsequent owners and operators. Within fifteen (15) days of the change in control or ownership, the Permittee shall notify the succeeding owner and operator of the existence of this PSD Permit and its conditions by letter, a copy of which shall be forwarded to EPA.

6. Severability:

The provisions of this PSD Permit are severable, and, if any provision of the PSD Permit is held invalid, the remainder of this PSD Permit shall not be affected.

7. New Source Performance Standards:

The Permittee is subject to the federal regulations entitled Standards of Performance for New Stationary Source (40 CFR Part 60). The owner or operator shall meet all applicable requirements of the General Provisions pursuant to 40 CFR Part 60, Subpart A, the Standard of Performance for Volatile Organic Liquid Storage Vessels pursuant to 40 CFR Part 60, Subpart Kb, and the Standard of Performance for Wool Fiberglass Insulation Manufacturing Plants pursuant to 40 CFR Part 60, Subpart PPP.

8. Other Applicable Regulations:

The Permittee shall construct and operate the stationary source in compliance with all other applicable provisions of 40 CFR Parts 52, 60, 61, and 63 and all other applicable federal, state and local air quality regulations.

9. Paperwork Reduction Act:

Any requirements established by this PSD Permit for the gathering and reporting of information are not subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act because this permit is not an “information collection request” within the meaning of 44 U.S.C. §§ 3502(4), 3502 (11), 3507, 3512, and 3518. Furthermore, this PSD Permit and any information gathering and reporting requirements established by this permit are exempt from OMB review under the Paperwork Reduction Act because it is directed to fewer than ten persons. 44 U.S.C. § 3502(4) and § 3502(11); 5 CFR § 1320.5(a).Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 8 of 21 10. Recordkeeping and Reporting:

a. All records and emission test results requested to be kept under the terms and conditions of this PSD Permit shall be retained for at least five (5) years from the date the record was created and shall be made available to the EPA upon request.

b. Semiannual reports are due 30 days after end of each calendar half following the effective date of the Permit. The reporting periods for each calendar half are January 1- June 30 and July 1 - December 31.

11. Agency Notification:

a. Unless otherwise directed by the EPA or this permit, the owner or operator shall submit a copy of all test plans, reports, certifications, notifications, and other information pertaining to compliance with this permit to:

Director, Air Division (Attn: AIR-5) U. S. Environmental Protection Agency Region 9

75 Hawthorne Street San Francisco, CA 94105-3901

b. The owner or operator shall submit permit applications, permit amendments, and other applicable permit information, which includes but not limited to installation of control equipment, replacement of an emissions unit, and changes that contravene permit terms, to:

Director, Air Division (Attn: AIR-3) U. S. Environmental Protection Agency Region 9

75 Hawthorne Street San Francisco, CA 94105

c. Copies of all correspondence required by this PSD Permit shall be forwarded to:

Air Pollution Control Officer Air Quality Management District Shasta County Department of Resource Management 1855 Placer Street, Suite 200 Redding, CA 96001Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 9 of 21 RAW MATERIAL HANDLING & MIXING OPERATING CONDITIONS

12. All of the material handling vents and tank vents that discharge into the interior of the batch plant building shall be controlled by twelve (12) baghouse dust collectors that shall prevent any and all particulate matter emissions from escaping the facility. The dust collectors shall be equipped with bag leak detectors which shall be maintained, continuously operated, and calibrated on a regular basis as recommended by the manufacturer to assure reliability. The bag leak detectors shall be equipped with an audible alarm which shall sound automatically in the control room to indicate a torn or leaking bag. Spare bags shall be kept on site for immediate replacement of leaking or torn bags. The Permittee must initiate corrective action within 1 hour of an alarm from the bag leak detection system and complete corrective actions immediately. The corrective action may include any one or a combination of the following actions:

a. Inspecting the baghouse for air leaks, torn or broken bags or filter media, or any other conditions that may cause an increase in emissions;

b. Sealing off defective bags or filter media;

c. Replacing defective bags or filter media, or otherwise repairing the control device;

d. Sealing off a defective baghouse compartment;

e. Cleaning the bag leak detection system probe, or otherwise repairing the bag leak detection system; and

f. Shutting down the process producing the particulate emissions.

13. The Permittee shall retain records of (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s).

14. Day Bin #1 and #2 dust collector emissions in the furnace building shall be discharged through the forming section exhausts and be controlled by the forming line scrubbers and wet electrostatic precipitator. Emissions from these dust collectors shall be measured as emissions from the forming line.

15. All railcar and bottom-dump hopper truck unloading of raw materials shall be done with a “dust boot” that seals the gap between the discharge of the hopper and the delivery system. The dust collectors on the material handling system shall be operational whenever materials are being delivered and shall prevent any and all particulate matter emissions from escaping the batch plant.Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 10 of 21 16. The Permittee shall submit a written report of the following actions on a semiannual basis: (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s). The report shall be submitted to EPA and is due on

the 30 th day following the end of each semiannual period after the effective date of this permit.

MOLTEN GLASS PRODUCTION OPERATING CONDITIONS

17. The glass melting furnace shall be heated only by electricity. No other auxiliary fuels may be used except during cold startup of the melting furnace or during prolonged electrical outages beyond the control of the facility when portable natural gas burners may be used to bring the temperature of the refractory and raw materials up to operating temperature. The Permittee shall retain records of all periods when portable burners are

used and the amount of fuel used.

18. The Permittee shall retain records of glass production averaged on a daily and weekly basis in tons of glass pulled per day. The records shall be available for inspection by the

EPA.

19. The method of control of particulate matter from the glass melting furnace shall be the use of two baghouse dust collectors capable of meeting the emission standards specified in condition 22 of this permit. The dust collectors shall be equipped with bag leak detectors which shall be maintained, continuously operated, and calibrated on a regular basis as recommended by the manufacturer to assure reliability. The bag leak detectors shall be equipped with an audible alarm which shall sound automatically in the control room to indicate a torn or leaking bag. Spare bags shall be kept on site for immediate replacement of leaking or torn bags. The Permittee must initiate corrective action within 1 hour of an alarm from the bag leak detection system and complete corrective actions immediately. The corrective action may include any one or a combination of the following actions:

a. Inspecting the baghouse for air leaks, torn or broken bags or filter media, or any other conditions that may cause an increase in emissions;

b. Sealing off defective bags or filter media;

c. Replacing defective bags or filter media, or otherwise repairing the control device;

d. Sealing off a defective baghouse compartment;Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 11 of 21 e. Cleaning the bag leak detection system probe, or otherwise repairing the bag leak detection system; and

f. Shutting down the process producing the particulate emissions.

20. The Permittee shall retain records of (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s).

21. The Permittee shall install, and thereafter continuously operate and maintain the following air pollution controls capable of meeting the emission standards in Condition 22 of this permit:

a. Use of two (2) baghouse dust collectors; and

b. Use of an all electric glass melting furnace.

22. PM10 emissions (filterable and condensable) from the Furnace Stack of the combined baghouse discharge exhausts from the glass melting furnace shall not exceed the following emission limitations:

a. 0.67 lb/hr and 0.07 lb/ton of glass pulled, based on a 3-hour rolling average; and

b. 2.9 tons per year, based on a 12-month rolling sum.

23. The Permittee shall install, calibrate, operate and maintain the following continuous monitors. The Permittee shall retain records of the hourly glass pull rate.

a. A continuous glass pull rate monitor that records glass pull rate on an hourly basis; and

b. A continuous dust collector bag leak detection system that records relative particulate matter emissions.

24. The opacity from the above stack shall not exceed 5 percent opacity based on a six (6) minute average and shall apply at all times. An audible alarm shall sound in the control room to indicate an opacity exceeding the above opacity limit.

25. The Permittee shall continuously operate and maintain a stack gas opacity monitor on the stack combining the baghouse discharge exhausts from the glass melting furnace. The continuous opacity monitor shall meet all applicable design and quality assurance requirements specified in 40 CFR 60.13 a nd 40 CFR Part 60, Specification 1 ofKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 12 of 21 Appendix B. A computer data acquisition system which has the capability of interpreting the sampling data, providing a graphical trend analysis, and producing a summary report of all six (6) minute averages of opacity readings shall also be provided.

26. The Permittee shall conduct an initial performance test for PM10 within 180 days after November 14, 2006. The Permittee shall conduct performance tests (as described in 40 CFR 60.8) for PM10 on the stack receiving the combined dust collector exhausts from the glass melting furnace (Furnace Stack). The Permittee shall retain records of all performance test measurements.

27. The Permittee shall conduct performance testing annually. Annual performance testing shall be performed within 30 days after the anniversary of the most recent performance test. The Permittee shall conduct performance tests (as described in 40 CFR 60.8) for PM10 on the stack receiving the combined dust collector exhausts from the glass melting furnace (Furnace Stack). The Permittee shall retain records of performance test

measurements.

28. Performance tests shall be conducted in accordance with EPA Methods 1 through 5, and

202 for PM10.

29. For each performance test, the Permittee shall submit a performance test protocol to EPA no later than 30 days prior to the test to allow review of the test plan and to arrange for an observer to be present at the test. The performance test protocol shall be amended if required by EPA. The performance test shall be conducted in accordance with the submitted protocol, and any changes required by EPA. In lieu of the above mentioned test methods, equivalent methods may be used with prior written approval from EPA.

30. Performance tests shall be performed by an independent testing firm. The Permittee shall furnish EPA with a written report of the results of such tests within sixty (60) days after the performance tests are conducted.

31. For performance test purposes, the Permittee shall provide sampling ports, platforms and access on the emission unit exhaust system in accordance with the requirements of 40 CFR 60.8(e).

32. During each performance test, the Permittee shall monitor and record the glass pull rate every fifteen (15) minutes. The Permittee shall determine the arithmetic average of the recorded glass pull rate measurements for each test run and calculate the average of the three test runs. This shall establish the test glass pull rate until the next performance test. The Permittee shall include the test glass pull rate for each performance test in the written report of the results of such tests for submission to EPA. The Permittee shall retain

records of all calculations and measurements.Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 13 of 21 33. For each performance test, the Permittee shall include a calculation of the actual PM10 emissions (in lb/hr and lb/ton glass pulled) for the glass melting furnace in the written report of the results of such tests for submission to EPA. The Permittee shall use the emission rate in lb/hr and the test glass pull rate, in average tons of glass pulled per hour, determined from the performance test, to determine the emissions in lb/ton glass pulled. The Permittee shall use the calculated actual PM10 emissions to determine compliance with the lb/ton BACT emission limit for the glass melting furnace (Furnace Stack) in Condition 22 of this permit. The Permittee shall retain records of all calculations and

measurements.

34. The Permittee shall determine compliance with the lb/hr emission limit for PM10 in Condition 22 of this permit on an hourly basis. The lb/hr emissions shall be calculated on an hourly basis using the actual glass pull rate for each hour and the PM10 emission factor, in lb/ton of glass pulled, determined from the past performance test (only those within the last five years) that most closely matches the operating glass pull rate. The

Permittee shall retain records of all calculations and measurements.

35. Re-Testing: The Permittee shall conduct a performance test within sixty (60) days if the glass pull rate increases by 5 percent or more (as averaged over any daily period) or decreases by 10 percent or more (as averaged over any weekly period) from the test glass pull rate established during any performance test within the last five (5) years conducted after the effective date of this permit. The performance test shall be performed within 5 percent above or below the glass pull rate that triggered this re-testing requirement. The Permittee shall retain records of all calculations and measurements. This performance test is not required if the Permittee tested within 5 percent above or below the new glass pull rate within the last five (5) years and compliance was demonstrated; if a re-bricking

of the furnace occurred within the last five (5) years after the performance test, new testing is required.

36. The Permittee shall submit a written report of all excess emissions and monitoring systems performance to EPA in accordance with 40 CFR 60.7 (c) and (d) on a semiannual basis. The report is due on the 30 th day following the end of each semiannual period after the effective date of this permit. Excess emissions shall be defined as any opacity level exceeding the opacity limitation in Condition 24 of this permit. Excess emissions shall be considered violations of the applicable emission limits for the purposes of this permit.

37. The Permittee shall submit a written report of all excess emissions for Condition 22 of this permit in accordance with Conditions 33 and 34 of this permit for the Furnace Stack. Excess emissions shall be defined as any emissions exceeding the maximum emission limits set forth in Condition 22. The report shall be submitted to EPA semiannually and

is due on the 30 th day following the end of each semiannual period after the effective dateKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 14 of 21 of this permit. Excess emissions shall be considered violations of the applicable emission limits for the purposes of this permit.

38. The Permittee shall submit a written report of the following actions on a semiannual basis: (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s). The report shall be submitted to EPA and is due on

the 30 th day following the end of each semiannual period after the effective date of this permit.

39. Upon prior written request and adequate justification from the Permittee, EPA may waive the annual performance test. EPA approval shall be in writing. EPA shall give written approval of such waiver. Such request must be submitted to EPA no later than 60 days prior to the annual performance test date.

FIBERGLASS FORMING/CURING/COOL ING OPERATING CONDITIONS

40. Natural gas shall constitute the only fuel allowed for use in the forming and curing operations.

41. The Permittee shall maintain a log of the throughput of molten glass averaged on an hourly, daily and weekly basis in tons of glass pulled per day. The log shall be available for inspection by the EPA.

42. The Permittee shall install, and thereafter continuously operate whenever fiberglass is being produced, and maintain the following air pollution control technologies capable of meeting the emission limitations specified in Condition 43 of this permit:

a. Forming Section: Use of combustion controls which minimize peak flame temperatures in the fiber forming process for control of NOx. Use of six (6) venturi scrubbers on the bonded wool forming line and one (1) venturi scrubber on the unbonded wool forming line (each with a minimum of 3” wc pressure drop), followed by a wet electrostatic precipitator with continuous water spray wash system and four (4) electrical fields (minimum) for the control of particulate

matter.

b. Curing Section: Use of low NOx burners burning natural gas for the control of NOx. Use of one regenerative thermal oxidizer with a minimum temperature of

1475°F and a residence time of at least 0.75 second for control of VOC and particulate matter. A lower minimum operating temperature, not less then 1200°F, may be used for the thermal oxidizers if, through emission testing, it is demonstrated to the satisfaction of the EPA that the lower temperature offers anKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 15 of 21 equivalent emission control of VOC and particulate matter as provided by the 1475°F minimum temperature.

The Permittee may retain the two existing thermal oxidizers. While the existing thermal oxidizers are in place, the Permittee shall operate the two existing thermal oxidizers during periods when the regenerative thermal oxidizer is shutdown, malfunctioning or undergoing maintenance. At no time shall the exhaust from the curing oven be vented to the atmosphere. The two thermal oxidizers shall operate in parallel with a minimum temperature of 1400°F and a residence time of at least 0.5 second for the control of VOC and particulate matter. A lower minimum operating temperature, not less then 1200°F, may be used for the thermal oxidizers if, through emission testing, it is demonstrated to the satisfaction of the EPA that the lower temperature offers an equivalent emission control of VOC and particulate matter as provided by the 1400°F minimum temperature.

c. Cooling Section: Use of a venturi wet scrubber for the control of particulate matter and VOC with exhaust immediately combined with inlet of the wet electrostatic precipitator at the forming section.

43. Emissions from the Main Stack of the fo rming/curing/cooling (manufacturing line) operations shall not exceed the following emission limitations:

a. NOx - 16.5 lb/hr and 1.76 lb/ton of glass pulled, based on a 3-hour rolling

average.

b. PM10 - 28.4 lb/hr and 3.03 lb/ton of glass pulled, based on a 3-hour rolling

average.

44. The opacity of the Main Stack exhaust, excluding condensed water vapor, shall not exceed 20 percent based on a six (6) minute average and shall apply at all times. An audible alarm shall sound in the control room to indicate an opacity exceeding the above opacity limit.

45. The Permittee shall continuously operate and maintain a stack gas opacity monitor on the Main Stack. The continuous opacity monitor shall meet all applicable design and quality assurance requirements specified in 40 CF R 60.13 and 40 CFR Part 60, Specification 1 of Appendix B. A computer data acquisition system which has the capability of interpreting the sampling data, providing a graphical trend analysis, and producing a summary report of all six (6) minute averages of opacity readings shall also be provided.Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 16 of 21 46. The Permittee shall continuously operate and maintain the venturi scrubbers for the removal of suspended particulate matter and for the pretreatment of the gas upstream of the wet electrostatic precipitator. The scrubbers shall maintain a minimum gas pressure drop of 3 inches water across the venturi throat and a minimum water flow to each scrubber of 200 gal/min. The pressure drop and water flow parameters shall be measured and recorded continuously. The solids in the scrubber water shall be removed to the extent necessary and fresh make-up water added at all times of operation.

47. The Permittee shall continuously operate and maintain a wet electrostatic precipitator for the control of suspended particulate matter from the outlet of the forming zone venturi scrubbers. The wet electrostatic precipitator shall maintain a minimum water flow and a minimum total corona power as established during initial emission testing to determine compliance with 40 CFR 60, Subpart PPP.

48. The Permittee shall install, calibrate, maintain, and operate monitoring devices that measure the following parameters at the frequency and accuracy as noted in Table 1. All monitoring devices required for measuring the parameters in Table 1 are to be recalibrated quarterly in accordance with procedures under Section 60.13(b) of 40 CFR

60.

Table 1

Parameters Recording Frequency Accuracy

Gas pressure drop across each scrubber (in.H 2 O) Continuous ±1" WC

Inlet water flow rate to each scrubber (GPM) Continuous ±5% over range

Wet Electrostatic Precipitator inlet water flowrate (GPM) Every 15

minutes ±5% over range

Wet Electrostatic Precipitator:

Secondary current (Amps.)

Secondary voltage (kV) Spark rate Corona power/T-R set per field Inlet temp. ( ° F) Every 15

minutes ±5% over range

Regenerative Thermal Oxidizer: Exhaust temperature Continuous ±5% over range

Thermal Oxidizer: Exhaust temperature Continuous ±5% over range

49. For performance test purposes, the Permittee shall provide sampling ports, platforms and access on the emission unit exhaust system in accordance with the requirements of 40 CFR 60.8(e).Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 17 of 21 50. Four sampling ports must be provided on the Main Stack (located on the same horizontal plane, 90 degrees apart, and at least two (2) duct diameters downstream, and one-half (1/2) duct diameters upstream of any flow disturbance) and shall consist of 4-inch female NPT couplings welded to the stack. The couplings shall be supplied with 4-inch pipe plugs. A sampling platform shall also be installed on the Main Stack.

51. Sampling ports must be provided on the inlet and outlet of the wet electrostatic precipitator, and on the outlets of the thermal oxidizers for the purpose of determining emission control efficiency. A sampling pl atform or other means of providing safe access to the sampling ports shall be installed.

Table 2

Test Location PM10 NOx

Main Stack Yes Yes

wet ESP exhaust Yes No

wet ESP inlet Yes No

52. The Permittee shall conduct an initial performance test for NOx and PM10 within 180 days after the effective date of this PSD perm it or the date of startup of the regenerative thermal oxidizer on the curing oven, whichever date is later. Startup means the setting in operation of the regenerative thermal oxidizer on the curing oven for any purpose. The Permittee shall conduct performance tests (as described in 40 CFR 60.8) at the Main Stack. The Permittee shall retain records of all performance test measurements.

53. The Permittee shall conduct performance testing annually. Annual performance testing shall be performed within 30 days after the anniversary of the most recent performance test. The Permittee shall conduct performance tests (as described in 40 CFR 60.8) for the NOx and PM10 emission limitations that apply to the Main Stack. The Permittee shall retain records of all performance tests measurements.

54. Performance tests shall be conducted in accordance with EPA Test Methods 1 through 4 and EPA Test Method 7E for NOx, and EPA Test Method 5E for PM10.

55. For each performance test, the Permittee shall submit a performance test protocol to EPA no later than 30 days prior to the test to allow review of the test plan and to arrange for an observer to be present at the test. The performance test protocol shall include the operating conditions and type of materials or products that are expected to be formed during the performance test. The protocol shall also include a summary of the various materials formed over the past year and the percent of time during which those materials were produced that would have a higher potential NOx and PM10 emissions. If the test is performed while producing a material that does not have the highest potential NOx orKnauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 18 of 21 PM10 emissions, a retest may be required if the test results do not demonstrate a sufficient margin to assure compliance during all operating scenarios. The performance test protocol shall be amended if required by EPA. The performance test shall be conducted in accordance with the submitted protocol, and any changes required by EPA. In lieu of the above mentioned test methods, equivalent methods may be used with prior written approval from EPA.

56. Performance tests shall be performed by an independent testing firm. The Permittee shall furnish EPA with a written report of the results of such tests within sixty (60) days after the performance tests are conducted.

57. During each performance test, the Permittee shall monitor and record the glass pull rate every fifteen (15) minutes. The Permittee shall determine the arithmetic average of the recorded glass pull rate measurements for each test run and calculate the average of the three test runs. This shall establish the test glass pull rate until the next performance test. The Permittee shall include the test glass pull rate for each performance test in the written report of the results of such tests for submission to EPA. The Permittee shall retain

records of all calculations and measurements.

58. For each performance test, the Permittee shall include a calculation of the actual NOx and PM10 emissions (in lb/hr and lb/ton glass pulled) for the forming/curing/cooling operation (Main Stack) in the written report of the results of such tests for submission to

EPA. The Permittee shall use the NOx and PM10 emission rates in lb/hr and the test glass pull rate, in average tons of glass pulled per hour, determined from the performance test, to determine the emissions of NOx and PM10 in lb/ton glass pulled. The Permittee shall use the calculated actual NOx and PM10 emissions to determine compliance with the lb/ton BACT emission limit for the forming/curing/cooling operation (Main Stack) in Condition 43 of this permit. The Permittee shall retain records of all calculations and

measurements.

59. The Permittee shall determine compliance with the lb/hr emission limit for NOx and PM10 in Condition 43 of this permit on an hourly basis. The lb/hr emissions shall be calculated on an hourly basis using the actual glass pull rate for each hour and the NOx and PM10 emission factors, in lb/ton of glass pulled, determined from the past performance test (only those within the last five years) that most closely matches the operating glass pull rate. The Permittee shall retain records of all calculations and

measurements.

60. Re-Testing: The Permittee shall conduct a performance test within sixty (60) days if the glass pull rate increases by 5 percent or more (as averaged over any daily period) or decreases by 10 percent or more (as averaged over any weekly period) from the test glass pull rate established during any performance test within the last five (5) years conducted after effective date of this permit. The pe rformance test shall be performed within 5Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 19 of 21 percent above or below the glass pull rate that triggered this re-testing requirement. The Permittee shall retain records of all calculations and measurements. This performance test is not required if the Permittee tested within 5 percent above or below the new glass pull rate within the last five (5) years and compliance was demonstrated; if a re-bricking

of the furnace occurred within the last five (5) years after the performance test, new testing is required.

61. The Permittee shall submit a written report of all excess emissions and monitoring systems performance to EPA in accordance with 40 CFR 60.7 (c) and (d) on a semiannual basis. The report is due on the 30 th day following the end of each semiannual period after the effective date of this permit. Excess emissions shall be defined as any opacity level exceeding the opacity limitation in Condition 44 of this permit. Excess emissions shall be considered violations of the applicable emission limits for the purposes of this permit.

62. The Permittee shall submit a written report of all excess emissions for Condition 43 of this permit in accordance with Conditions 58 and 59 of this permit for the forming/curing/cooling operation (Main Stack). Excess emissions shall be defined as any emissions exceeding the maximum emission limits set forth in Condition 43. The report shall be submitted to EPA semiannually and is due on the 30 th day following the end of each semiannual period after the effective date of this permit. Excess emissions shall be considered violations of the applicable emission limits for the purposes of this permit.

63. The Permittee shall maintain a file of all measurements, including continuous monitoring system, monitoring device, and performance testing measurements; all continuous monitoring system performance evaluations; all continuous monitoring system or monitoring device calibration checks; adjustments and maintenance performed on these systems or devices; and all other information required by 40 CFR Part 60 recorded in a permanent form suitable for inspection. The file shall be retained for at least five (5) years following the date of such measurements, maintenance, reports and records.

64. Upon prior written request and adequate justification from the Permittee, EPA may waive the annual performance test. EPA approval shall be in writing. Such request must be submitted to EPA no later than 60 days prior to the annual performance test date.Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 20 of 21 FIBERGLASS TRIMMING & PACKAGING OPERATING CONDITIONS

65. The method of control of particulate matter from the bonded wool forming line trimming and packaging areas, the Class A unbonded blow ing wool processing area, and the Class B blowing wool processing area of the plant sh all be the use of four (4) dust collector assemblies each followed by a high density filter module which shall exhaust inside the Scrap Building and have no outside vent.

66. The dust collectors shall be equipped with bag leak detectors which shall be maintained, continuously operated, and calibrated on a regular basis as recommended by the manufacturer to assure reliability.

67. The bag leak detectors shall be equipped with an audible alarm which shall sound automatically in the control room to indicate a torn or leaking bag. Spare bags shall be kept on site for immediate replacement of leaking or torn bags. The Permittee must initiate corrective action within 1 hour of an alarm from the bag leak detection system and complete corrective actions immediately. The corrective action may include any one or a combination of the following actions:

a. Inspecting the baghouse for air leaks, torn or broken bags or filter media, or any other conditions that may cause an increase in emissions;

b. Sealing off defective bags or filter media;

c. Replacing defective bags or filter media, or otherwise repairing the control device;

d. Sealing off a defective baghouse compartment;

e. Cleaning the bag leak detection system probe, or otherwise repairing the bag leak detection system; and

f. Shutting down the process producing the particulate emissions.

68. The Permittee shall retain records of (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s).Knauf Insulation, GmbH
PSD Permit No. SAC 03-01 Amended December 13, 2010 Page 21 of 21 69. The Permittee shall monitor and retain records of the following parameters on a daily

basis:

a. Hours of operation

b. Production rates

c. Leaks from the dust collectors

70. The Permittee shall submit a written report of the following actions on a semiannual basis for the leak bag detection system: (a) each occurrence of the alarm for the bag leak detection system, (b) the corrective action(s) taken for each occurrence of the alarm, and (c) the duration for completing each corrective action(s). The report shall be submitted to

EPA and is due on the 30 th day following the end of each semiannual period after the effective date of this permit.