Facility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/DRAFT Page 1 PERMIT Under the Environmental Conservation Law (ECL)

IDENTIFICATION INFORMATION

Permit Type: Air Title V Facility Permit ID: 7-3132-00052/00020 Mod 0 Effective Date: 01/11/2010 Expiration Date: 01/10/2015

Mod 1 Effective Date: Expiration Date:

Mod 2 Effective Date: Expiration Date:

Permit Issued To:SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DR SYRACUSE, NY 13204-1091

Contact: STUART PIERMARINI SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DRIVE SYRACUSE, NY 13204 (315) 487-4473

Facility: SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DR SYRACUSE, NY 13204-1091

Contact: STUART PIERMARINI SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DRIVE SYRACUSE, NY 13204 (315) 487-4473

Description: Title V permit modification to incorporate the requirements of Part 249, Best Available Retrofit Technology (BART) for the Syracuse Energy Corporation facility. Boiler Unit 1 is subject to these requirements, and the facility has elected to shut down Unit 1 no later than January 1, 2014 in order to comply with this rule.Facility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/DRAFT Page 2 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: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/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: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/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 Facility Level Submission of application for permit modification or renewal-REGION 7 HEADQUARTERSFacility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/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 be submitted prior to actual transfer of ownership.Facility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/DRAFT Page 6 Condition 2-1: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 2-1.1: 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 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, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

** ** Facility Level  

Condition 5: Submission of application for permit modification or renewal-REGION 7 HEADQUARTERS Applicable State Requirement: 6 NYCRR 621.6 (a)

Item 5.1: Submission of applications for permit modification or renewal are to be submitted to: NYSDEC Regional Permit Administrator Region 7 Headquarters Division of Environmental Permits 615 Erie Blvd West Syracuse, NY 13204-2400 (315) 426-7400Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/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:SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DR SYRACUSE, NY 13204-1091

Facility: SYRACUSE ENERGY CORPORATION 56 INDUSTRIAL DR SYRACUSE, NY 13204-1091

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

Permit Effective Date: Permit Expiration Date:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

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

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 2-1 6 NYCRR 201-6.5 (a) (7): Fees 2-2 6 NYCRR 215.2: Open Fires - Prohibitions 2-3 6 NYCRR 202-1.1: Required Emissions Tests 24 6 NYCRR Subpart 201-6: Emission Unit Definition 2-4 6 NYCRR 211.1: Air pollution prohibited 2-5 6 NYCRR 249.1 (c) (2): Exemption from Part 249 Emission Unit Level 39 6 NYCRR Subpart 201-6: Process Definition By Emission Unit

EU=U-00BLR 2-6 6 NYCRR 249.1 (c) (2): Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 50 ECL 19-0301: Contaminant List 2-7 6 NYCRR 211.2: Visible Emissions LimitedPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 3 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 4 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 5 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 6 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 7 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 2-1: Fees Effective for entire length of Permit

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

Item 2-1.1: 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 2-2: Open Fires - Prohibitions Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 215.2

Item 2-2.1: 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 2-2.2 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 8 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 2-3: Required Emissions Tests Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 2-3.1: 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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 9 DRAFT The following conditions are subject to annual compliance certification requirements for Title V permits only.

Condition 24: Emission Unit Definition Effective between the dates of 01/11/2010 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 24.1(From Mod 2): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00BLR Emission Unit Description: Five pulverized coal boilers, each with a design capacity of 275 mmBtu/hr. Boilers # 4 and #5 are capable of firing alternative fuel fluff in conjunction with coal, or 100% coal.

Building(s): BLR HS

Item 24.2(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: 0-PAPER Emission Unit Description: Alternative fuel handling and storage. Approved non-recyclable paper materials are unloaded, unpacked, inspected, blended and shredded into "fluff." The fluff is pneumatically conveyed to the boilers for combustion. A dust collection system is used to control emissions from shreding and transfer operations as necessary, with cleaned exhaust recirculated to the building. All process emissions are fugitive.

Building(s): Paper

Item 24.3(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00ASH Emission Unit Description: The flyash handling system includes two pneumatic systems that transfer flyash from the boiler gas passes and the boiler baghouse hoppers to the ash storage silo. Transport air for each system is exhausted through a baghouse. The ash storage silo is equipped with a bin vent filter. Flyash is mixed with water (as-needed to suppress dust) and discharged to waiting trucks or rail cars and is transported off-site for disposal.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 10 DRAFT Building(s): ASILO

Item 24.4(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-0COAL Emission Unit Description: Coal is unloaded from railroad cars and is either conveyed to the coal storage pile or is crushed and conveyed to the coal bunkers in the boiler house. Coal from the storage pile is reclaimed, crushed and conveyed to the bunkers. Emissions from unloading, crushing and conveying are fugitive in nature, and are controlled on an as-needed basis using a water spray. The coal storage bunkers are ventilated and exhausted through two baghouses.

Building(s): BLR HS CRSH B

Item 24.5(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-0COOL Emission Unit Description: Six cell mechanical draft tower used to dissipate waste heat from the cogeneration facility.

Item 24.6(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-0LIME Emission Unit Description: Lime handling and storage (for spray dry adsorber). Pebble lime is pneumatically unloaded from trucks to a storage silo equipped with a bin vent filter. The lime is mixed with water in a slaker, passed through a grit remover and transferred to the lime slurry storage tank before being mixed with additional water and injected into the spray dry adsorber. All process emissions are fugitive or exempt.

Condition 2-4: Air pollution prohibited Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 211.1

Item 2-4.1: 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.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 11 DRAFT Condition 2-5: Exemption from Part 249 Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.1 (c) (2)

Item 2-5.1: A source that permanently shuts down by January 1, 2014 is exempt from the requirements of Part 249.

** ** Emission Unit Level  

Condition 39: Process Definition By Emission Unit Effective between the dates of 01/11/2010 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 39.1(From Mod 2): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: COA Source Classification Code: 1-03-002-14 Process Description: Any number of five boilers firing bituminous coal. The flue gas exhaust passes through a spray dry absorber and a fabric filter baghouse.

Emission Source/Control: 0BLRS - Combustion Design Capacity: 275 million Btu per hour

Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTER

Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTION

Item 39.2(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 0-PAPER Process: PHS Source Classification Code: 1-01-002-02 Process Description: This process identifies those operations associated with alternative fuel handling and storage.

Emission Source/Control: PAPHS - Process

Item 39.3(From Mod 0):Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 12 DRAFT This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00ASH Process: MIS Source Classification Code: 3-05-009-05 Process Description: Pneumatic transfer of flyash from the boiler gas passes and the boiler baghouse hoppers to the ash storage silo, and transfer from the silo to trucks or rail cars for off-site disposal.

Emission Source/Control: ASHBG - Control Control Type: FABRIC FILTER

Emission Source/Control: ASHTR - Process

Item 39.4(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: ALT Source Classification Code: 1-01-012-01 Process Description: Boilers #3, #4 and/or #5 combusting up to 30% by weight alternative fuel fluff processed from pre-consumer, non-recyclable, non-reusable, non-contaminated plastic coated paper, wax coated paper, paper, fibrous material and low chlorine content (less than 1% dry weight as received) plastic film. Demonstration that this is the only type of alternative fuel fired shall be in accordance with the Alternative Fuels QA/QC Plan approved by the Department.

Emission Source/Control: 0BLRS - Combustion Design Capacity: 275 million Btu per hour

Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTER

Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTION

Item 39.5(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: BIO Source Classification Code: 1-01-007-01 Process Description: Burning of biogas generated from the Solvay Paperboard wastewater treatment facility.

Emission Source/Control: 0BLRS - Combustion Design Capacity: 275 million Btu per hourPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 13 DRAFT Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTER

Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTION

Item 39.6(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: CCA Source Classification Code: 1-02-005-01 Process Description: Boilers #3, #4 and/or #5 combusting up to 30% by weight alternative fuel fluff in conjunction with bituminous coal with a sulfur content less than or equal to 0.60 lb/MMBTU, or that achieves a stack emission rate less than or equal to 1.20 lbs SO2 per million BTU without the spray dryer operating. The alternative fuel fluff is processed from pre-consumer, non-recyclable, non-reuseable, non-contaminated plastic coated paper, wax coated paper, paper, fibrous material and low chlorine content (less than 1% by weight as received) plastic film. Demonstration that this is the only type of alternative fuel fired shall be in accordance with the Alternative Fuels QA/QC Plan approved by the Department.

Emission Source/Control: 0BLR4 - Combustion Design Capacity: 275 million BTUs per hour

Emission Source/Control: 0BLR5 - Combustion Design Capacity: 275 million BTUs per hour

Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTER

Item 39.7(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: CCO Source Classification Code: 1-03-002-14 Process Description: Any number of five boilers firing bituminous coal with a sulfur content less than or equal to 0.60 lb sulfur per million BTU, or that achieves a stack emission rate less than or equal to 1.20 pounds SO2 per million BTU without the spray dry absorber operating.

Emission Source/Control: 0BLRS - Combustion Design Capacity: 275 million Btu per hour

Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTERPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 14 DRAFT Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTION

Item 39.8(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00BLR Process: OIL Source Classification Code: 1-02-005-01 Process Description: Any number of five boilers firing #2 fuel oil for boiler startup, low load operation and/or flame stabilization. The flue gas exhaust passes through a spray dry absorber and a fabric filter baghouse.

Emission Source/Control: 0BLRS - Combustion Design Capacity: 275 million Btu per hour

Emission Source/Control: 0BAGH - Control Control Type: FABRIC FILTER

Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTION

Item 39.9(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-0COAL Process: BNK Source Classification Code: 3-05-010-43 Process Description: COAL BUNKER BAGHOUSE USED TO CONTROL DUST EMISSIONS FROM THE COAL STORAGE BUNKERS. TRAPPED COAL DUST FROM THE BAGHOUSE IS RECYCLED BACK TO PROCESS (COAL BUNKERS).

Emission Source/Control: BNKBG - Control Control Type: FABRIC FILTER

Emission Source/Control: UNLOD - Process

Item 39.10(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-0COAL Process: CRU Source Classification Code: 3-05-010-11 Process Description: The coal crusher/conveying system transfers coal from unloading system to either the boiler building or to the coal storage pile. As coal is transferred to the boiler building, it passes through a metal removal magnet and through a crusher. The crusher also contains a water/surfactant sprayer for dust suppression, as needed.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 15 DRAFT Emission Source/Control: DETER - Control Control Type: DUST SUPPRESSION BY WATER SPRAY

Emission Source/Control: CNVEY - Process

Emission Source/Control: CPILE - Process

Emission Source/Control: CRUSH - Process

Item 39.11(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-0COAL Process: UNL Source Classification Code: 3-05-010-11 Process Description: Unloading of railroad cars and transferring coal from the coal storage pile to the coal crusher/conveying system. A mixture of water and surfactant is used for dust suppression, as needed.

Emission Source/Control: DETER - Control Control Type: DUST SUPPRESSION BY WATER SPRAY

Emission Source/Control: UNLOD - Process

Item 39.12(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-0COOL Process: CTR Source Classification Code: 1-01-002-02 Process Description: Condensed steam and boiler blowdown waste heat dissipation using a mechanical cooling tower.

Emission Source/Control: DRIFT - Control Control Type: MIST ELIMINATOR

Emission Source/Control: CLTWR - Process

Item 39.13(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-0LIME Process: LHS Source Classification Code: 1-01-002-02 Process Description: All process operations associated with lime handling and storage.

Emission Source/Control: LIMHS - Process

Emission Source/Control: LSILO - ProcessPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 16 DRAFT Condition 2-6: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.1 (c) (2)

Item 2-6.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

Item 2-6.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Coal fired boiler Unit 1 is subject to the requirements of Part 249, Best Available Retrofit Technology (BART). This unit will be permanently shut down by January 1, 2014. Faci lity shall notify the Department in writing within 30 days of the actual date of shutdown of unit 1, which must occur prior to January 1, 2014.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 17 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 50: Contaminant List Effective between the dates of 01/11/2010 and Permit Expiration Date

Applicable State Requirement:ECL 19-0301

Item 50.1: Emissions of the following contaminants are subject to contaminant specific requirements in this permit(emission limits, control requirements or compliance monitoring conditions).

CAS No: 000124-38-9 Name: CARBON DIOXIDEPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 18 DRAFT CAS No: 007446-09-5 Name: SULFUR DIOXIDE

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

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

Condition 2-7: Visible Emissions Limited Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 211.2

Item 2-7.1: 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.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Changes Only Page 19 DRAFT