Facility DEC ID: 3392200003

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

IDENTIFICATION INFORMATION

Permit Type: Air Title V Facility Permit ID: 3-3922-00003/00008 Effective Date: Expiration Date:

Permit Issued To:GENON BOWLINE LLC 140 SAMSONDALE AVE WEST HAVERSTRAW, NY 10993

Contact: LEO RAJTER GENON BOWLINE, LLC 140 SAMSONDALE AVE WEST HAVERSTRAW, NY 10993 (845) 786-8008

Facility: BOWLINE GENERATING STATION 140 SAMSONDALE AVE WEST HAVE RSTRAW, NY 10993

Contact: VINCENT A DEVITA GENON BOWLINE LLC 140 SAMSONDALE AVE WEST HAVERSTRAW, NY 10993 (845) 786-8070

Description: Title V renewal. Includes conditions related to a BART determination for Units 1 and 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: KENNETH R GRZYB NYSDEC REGION 3 21 S PUTT CORNERS RD NEW PALTZ, NY 12561

Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 3392200003

DEC Permit Conditions Renewal 2/DRAFT Page 2 Notification of Other State Permittee Obligations

Item A: Permittee Accepts Legal Responsibility and Agrees to Indemnification

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

Item B: Permittee's Contractors to Comply with Permit

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

Item C: Permittee Responsible for Obtaining Other Required Permits

The permittee is responsible for obtaining any other permits, approvals, lands, easements and rights-of-way that may be required to carry out the activities that are authorized by this permit.

Item D: No Right to Trespass or Interfere with Riparian Rights

This permit does not convey to the permittee any right to trespass upon the lands or interfere with the riparian rights of others in order to perform the permitted work nor does it authorize the impairment of any rights, title, or interest in real or personal property held or vested in a person not a party to the permit.Facility DEC ID: 3392200003

DEC Permit Conditions Renewal 2/DRAFT Page 3 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 3 HEADQUARTERSFacility DEC ID: 3392200003

DEC Permit Conditions Renewal 2/DRAFT Page 4 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: 3392200003

DEC Permit Conditions Renewal 2/DRAFT Page 5 Condition 4: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 4.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:

a) materially false or inaccurate statements in the permit application or supporting papers; b) failure by the permittee to comply with any terms or conditions of the permit; c) exceeding the scope of the project as described in the permit application; d) newly discovered material information or a material change in environmental conditions, relevant technology or applicable law or regulations since the issuance of the existing permit; e) noncompliance with previously issued permit conditions, orders of the commissioner, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

Condition 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.

** ** Facility Level  

Condition 6: Submission of application for permit modification or renewal-REGION 3 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 3 Headquarters Division of Environmental Permits 21 South Putt Corners Road New Paltz, NY 12561-1696 (845) 256-3054Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 1 DRAFT Permit Under the Environmental Conservation Law (ECL)

ARTICLE 19: AIR POLLUTION CONTROL - TITLE V PERMIT

IDENTIFICATION INFORMATION

Permit Issued To:GENON BOWLINE LLC 140 SAMSONDALE AVE WEST HAVE RSTRAW, NY 10993

Facility: BOWLINE GENERATING STATION 140 SAMSONDALE AVE WEST HAVERSTRAW, NY 10993

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

Permit Effective Date: Permit Expiration Date:Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 2 DRAFT LIST OF CONDITIONS

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1 6 NYCRR 200.6: Acceptable Ambient Air Quality 2 6 NYCRR 201-6.5 (a) (7): Fees 3 6 NYCRR 201-6.5 (c): Recordkeeping and reporting of compliance monitoring 4 6 NYCRR 201-6.5 (c) (2): Monitoring, Related Recordkeeping, and Reporting Requirements. 5 6 NYCRR 201-6.5 (c) (3) (ii): Compliance Certification 6 6 NYCRR 201-6.5 (e): Compliance Certification 7 6 NYCRR 202-2.1: Compliance Certification 8 6 NYCRR 202-2.5: Recordkeeping requirements 9 6 NYCRR 215.2: Open Fires - Prohibitions 10 6 NYCRR 200.7: Maintenance of Equipment 11 6 NYCRR 201-1.7: Recycling and Salvage 12 6 NYCRR 201-1.8: Prohibition of Reintroduction of Collected Contaminants to the air 13 6 NYCRR 201-3.2 (a): Exempt Sources - Proof of Eligibility 14 6 NYCRR 201-3.3 (a): Trivial Sources - Proof of Eligibility 15 6 NYCRR 201-6.5 (a) (4): Standard Requirement - Provide Information 16 6 NYCRR 201-6.5 (a) (8): General Cond ition - Right to Inspect 17 6 NYCRR 201-6.5 (d) (5): Standard Requirements - Progress Reports 18 6 NYCRR 201-6.5 (f) (6): Off Permit Changes 19 6 NYCRR 202-1.1: Required Emissions Tests 20 40 CFR Part 68: Accidental release provisions. 21 40CFR 82, Subpart F: Recycling and Emissions Reduction 22 6 NYCRR Subpart 201-6: Emission Unit Definition 23 6 NYCRR 211.1: Air pollution prohibited 24 6 NYCRR 225-1.2 (a) (2): Compliance Certification 25 6 NYCRR 225-1.7 (c): Compliance Certification 26 6 NYCRR 225-1.8 (a): Compliance Certification 27 6 NYCRR 227-1.3 (a): Compliance Certification 28 6 NYCRR 243-1.6 (a): Permit Requirements 29 6 NYCRR 243-1.6 (b): Monitoring requirements 30 6 NYCRR 243-1.6 (c): NOx Ozone Season Emission Requirements 31 6 NYCRR 243-1.6 (d): Excess emission requirements 32 6 NYCRR 243-1.6 (e): Recordkeeping and reporting requirements 33 6 NYCRR 243-2.1: Authorization and responsibilities of CAIR designated representative 34 6 NYCRR 243-2.4: Certificate of representation 35 6 NYCRR 243-8.1: General requirements 36 6 NYCRR 243-8.1: Prohibitions 37 6 NYCRR 243-8.5 (d): Quarterly reports 38 6 NYCRR 243-8.5 (e): Compliance certification 39 6 NYCRR Subpart 244-1: CAIR NOx Annual Trading Program General Conditions 40 6 NYCRR Subpart 244-2: Designated CAIR Representative 41 6 NYCRR Subpart 244-8: Compliance CertificationPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 3 DRAFT 42 6 NYCRR Subpart 245-1: CAIR SO2 Trading Program General Provisions 43 6 NYCRR Subpart 245-2: Designated CAIR Representative 44 6 NYCRR Subpart 245-8: Compliance Certification 45 40CFR 60.13, NSPS Subpart A: Monitoring requirements. 46 40CFR 72.6(a)(2), Subpart A: Compliance Certification 47 40CFR 75.10(a), Subpart B: Compliance Certification Emission Unit Level 48 6 NYCRR Subpart 201-6: Emission Point Definition By Emission Unit 49 6 NYCRR Subpart 201-6: Process Definition By Emission Unit

EU=1-00001 50 6 NYCRR 249.3 (a): Compliance Certification 51 6 NYCRR 249.3 (a): Compliance Certification 52 6 NYCRR 249.3 (f): Compliance Certification

EU=1-00001,EP=00001

53 6 NYCRR 227-1.2 (a) (1): Compliance Certification 54 6 NYCRR 227-1.3 (a): Compliance Certification

EU=1-00001,EP=00001

55 6 NYCRR 227-1.4 (b): Compliance Certification

EU=1-00002 56 6 NYCRR 249.3 (a): Compliance Certification 57 6 NYCRR 249.3 (a): Compliance Certification

EU=1-00002,EP=00002

58 6 NYCRR 227-1.2 (a) (1): Compliance Certification 59 6 NYCRR 227-1.4 (b): Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 60 ECL 19-0301: Contaminant List 61 6 NYCRR 201-1.4: Unavoidable noncompliance and violations 62 6 NYCRR 211.2: Visible Emissions Limited 63 6 NYCRR 227-2.5: Compliance DemonstrationPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 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: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 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: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 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: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 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: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 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: Acceptable Ambient Air Quality Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 200.6

Item 1.1: Notwithstanding the provisions of 6 NYCRR Chapter III, Subchapter A, no person shall allow or permit any air contamination source to emit air contaminants in quantities which alone or in combination with emissions from other air contamination sources would contravene any applicable ambient air quality standard and/or cause air pollution. In such cases where contravention occurs or may occur, the Commissioner shall specify the degree and/or method of emission control required.

Condition 2: Fees Effective for entire length of Permit

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

Item 2.1: 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 3: Recordkeeping and reporting of compliance monitoring Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (c)

Item 3.1:Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 9 DRAFT The following information must be included in any required compliance monitoring records and reports:

(i) The date, place, and time of sampling or measurements;

(ii) The date(s) analyses were performed;

(iii)The company or entity that performed the analyses;

(iv) The analytical techniques or methods used including quality assurance and quality control procedures if required;

(v) The results of such analyses including quality assurance data where required; and

(vi) The operating conditions as existing at the time of sampling or measurement.

Any deviation from permit requirements must be clearly identified in all records and reports. Reports must be certified by a responsible official, consistent with Section 201-6.3 of this Part 201.

Condition 4: Monitoring, Related Recordkeeping, and Reporting Requirements. Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (c) (2)

Item 4.1: Compliance monitoring and recordkeeping shall be conducted according to the terms and conditions contained in this permit and shall follow all quality assurance requirements found in applicable regulations. Records of all monitoring data and support information must be retained for a period of at least 5 years from the date of the monitoring, sampling, measurement, report, or application. Support information includes all calibration and maintenance records and all original strip-chart recordings for continuous monitoring instrumentation, and copies of all reports required by the permit.

Condition 5: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (c) (3) (ii)

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

Item 5.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: To meet the requirements of this facility permit with respect to reporting, the permittee must:

Submit reports of any required monitoring at a minimumPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 10 DRAFT frequency of every 6 months, based on a calendar year reporting schedule. These reports shall be submitted to the Department within 30 days after the end of a reporting period. All instances of deviations from permit requirements must be clearly identified in such reports. All required reports must be certified by the responsible official for this facility.

Notify the Department and report permit deviations and incidences of noncompliance stating the probable cause of such deviations, and any corrective actions or preventive measures taken. Where the underlying applicable requirement contains a definition of prompt or otherwise specifies a time frame for reporting deviations, that definition or time frame shall govern. Where the underlying applicable requirement fails to address the time frame for reporting deviations, reports of deviations shall be submitted to the permitting authority based on the following schedule:

(1) For emissions of a hazardous air pollutant (as identified in an applicable regulation) that continue for more than an hour in excess of permit requirements, the report must be made within 24 hours of the

occurrence.
(2) For emissions of any regulated air pollutant, excluding those listed in paragraph (1) of this section, that continue for more than two hours in excess of permit requirements, the report must be made within 48 hours.

(3) For all other deviations from permit requirements, the report shall be contained in the 6 month monitoring report required above.

(4) This permit may contain a more stringent reporting requirement than required by paragraphs (1), (2) or (3) above. If more stringent reporting requirements have been placed in this permit or exist in applicable requirements that apply to this facility, the more stringent reporting requirement shall apply.

If above paragraphs (1) or (2) are met, the source must notify the permitting authority by telephone during normal business hours at the Regional Office of jurisdiction for this permit, attention Regional Air Pollution Control Engineer (RAPCE) according to the timetable listed in paragraphs (1) and (2) of this section. For deviations and incidences that must be reported outside of normal business hours, on weekends, or holidays, the DEC Spill Hotline phone number at 1-800-457-7362 shall be used. APermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 11 DRAFT written notice, certified by a responsible official consistent with 6 NYCRR Part 201-6.3(d)(12), must be submitted within 10 working days of an occurrence for deviations reported under (1) and (2). All deviations reported under paragraphs (1) and (2) of this section must also be identified in the 6 month monitoring report required above.

The provisions of 6 NYCRR 201-1.4 shall apply if the permittee seeks to have a violation excused unless otherwise limited by regulation. In order to have a violation of a federal regulation (such as a new source performance standard or national emissions standard for hazardous air pollutants) excused, the specific federal regulation must provide for an affirmative defense during start-up, shutdowns, malfunctions or upsets. Notwithstanding any recordkeeping and reporting requirements in 6 NYCRR 201-1.4, reports of any deviations shall not be on a less frequent basis than the reporting periods described in paragraphs (1) and (4) above.

In the case of any condition contained in this permit with a reporting requirement of "Upon request by regulatory agency" the permittee shall include in the semiannual report, a statement for each such condition that the monitoring or recordkeeping was performed as required or requested and a listing of all instances of deviations from these requirements.

In the case of any emission testing performed during the previous six month reporting period, either due to a request by the Department, EPA, or a regulatory requirement, the permittee shall include in the semiannual report a summary of the testing results and shall indicate whether or not the Department or EPA has approved the results.

All semiannual reports shall be submitted to the Administrator (or his or her representative) as well as two copies to the Department (one copy to the regional air pollution control engineer (RAPCE) in the regional office and one copy to the Bureau of Quality Assurance (BQA) in the DEC central office). Mailing addresses for the above referenced persons are contained in the monitoring condition for 6 NYCRR Part 201-6.5(e), contained elsewhere in this permit.

Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

Condition 6: Compliance CertificationPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 12 DRAFT Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (e)

Item 6.1: The Compliance Certification activity will be performed for the Facility.

Item 6.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Requirements for compliance certifications with terms and conditions contained in this facility permit include the following:

i. Compliance certifications shall contain: - the identification of each term or condition of the permit that is the basis of the certification; - the compliance status; - whether compliance was continuous or intermittent; - the method(s) used for determining the compliance status of the facility, currently and over the reporting period consistent with the monitoring and related recordkeeping and reporting requirements of this permit; - such other facts as the Department may require to determine the compliance status of the facility as specified in any special permit terms or conditions; and - such additional requirements as may be specified elsewhere in this permit related to compliance certification.

ii. The responsible official must include in the annual certification report all terms and conditions contained in this permit which are identified as being subject to certification, including emission limitations, standards, or work practices. That is, the provisions labeled herein as "Compliance Certification" are not the only provisions of this permit for which an annual certification is required.

iii. Compliance certifications shall be submitted annually. Certification reports are due 30 days after the anniversary date of four consecutive calendar quarters. The first report is due 30 days after the calendar quarter that occurs just prior to the permit anniversary date, unless another quarter has been acceptable by the Department.

iv. All compliance certifications shall be submitted to the Administrator (or his or her representative) as wellPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 13 DRAFT as two copies to the Department (one copy to the regional air pollution control engineer (RAPCE) in the regional office and one copy to the Bureau of Quality Assurance (BQA) in the DEC central office). Please send annual compliance certifications to Chief of the Stationary Source Compliance Section, the Region 2 EPA representative for the Administrator, at the following address:

USEPA Region 2 Air Compliance Branch 290 Broadway New York, NY 10007-1866

The address for the RAPCE is as follows:

21 South Putt Corners Road New Paltz, NY 12561-1696

The address for the BQA is as follows:

NYSDEC Bureau of Quality Assurance 625 Broadway Albany, NY 12233-3258

Monitoring Frequency: ANNUALLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2012. Subsequent reports are due on the same day each year

Condition 7: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-2.1

Item 7.1: The Compliance Certification activity will be performed for the Facility.

Item 7.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Emission statements shall be submitted on or before April 15th each year for emissions of the previous calendar
year.
Monitoring Frequency: ANNUALLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due by April 15th for previous calendar yearPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 14 DRAFT Condition 8: Recordkeeping requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-2.5

Item 8.1: (a) The following records shall be maintained for at least five years:

(1) a copy of each emission statement submitted to the department; and

(2) records indicating how the information submitted in the emission statement was determined, including any calculations, data, measurements, and estimates used.

(b) These records shall be made available at the facility to the representatives of the department upon request during normal business hours.

Condition 9: Open Fires - Prohibitions Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 215.2

Item 9.1: 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 9.2 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 used 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.Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 15 DRAFT (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 10: Maintenance of Equipment Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 200.7

Item 10.1: Any person who owns or operates an air contamination source which is equipped with an emission control device shall operate such device and keep it in a satisfactory state of maintenance and repair in accordance with ordinary and necessary practices, standards and procedures, inclusive of manufacturer's specifications, required to operate such device effectively.

Condition 11: Recycling and Salvage Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-1.7

Item 11.1: Where practical, any person who owns or operates an air contamination source shall recycle or salvage air contaminants collected in an air cleaning device according to the requirements of the ECL.

Condition 12: Prohibition of Reintroduction of Collected Contaminants to the air Effective for entire length of PermitPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 16 DRAFT Applicable Federal Requirement:6 NYCRR 201-1.8

Item 12.1: No person shall unnecessarily remove, handle or cause to be handled, collected air contaminants from an air cleaning device for recycling, salvage or disposal in a manner that would reintroduce them to the outdoor atmosphere.

Condition 13: Exempt Sources - Proof of Eligibility Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-3.2 (a)

Item 13.1: The owner and/or operator of an emission source or unit that is eligible to be exempt may be required to certify that it operates within the specific criteria described in this Subpart. The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to 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.

Condition 14: Trivial Sources - Proof of Eligibility Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-3.3 (a)

Item 14.1: The owner and/or operator of an emission source or unit that is listed as being trivial in this Part may be required to certify that it operates within the specific criteria described in this Subpart. The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to 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.

Condition 15: Standard Requirement - Provide Information Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (a) (4)

Item 15.1: The owner and/or operator shall furnish to the department, within a reasonable time, any information that the department may request in writing to determine whether cause exists for modifying, revoking and reissuing, or terminating the permit or to determine compliance with the permit. Upon request, the permittee shall also furnish to the department copies of records required to be kept by the permit or, for information claimed to be confidential, the permittee may furnish such records directly to the administrator along with a claim of confidentiality, if the administrator initiated the request for information or otherwise has need of it.

Condition 16: General Condition - Right to InspectPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 17 DRAFT Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (a) (8)

Item 16.1: The department or an authorized representative shall be allowed upon presentation of credentials and other documents as may be required by law to:

(i) enter upon the permittee's premises where a facility subject to the permitting requirements of this Subpart is located or emissions-related activity is conducted, or where records must be kept under the conditions of the permit;

(ii) have access to and copy, at reasonable times, any records that must be kept under the conditions of the permit;

(iii) inspect at reasonable times any emission sources, equipment (including monitoring and air pollution control equipment), practices, and operations regulated or required under the permit; and

(iv) sample or monitor at reasonable times substances or parameters for the purpose of assuring compliance with the permit or applicable requirements.

Condition 17: Standard Requirements - Progress Reports Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (d) (5)

Item 17.1: Progress reports consistent with an applicable schedule of compliance are to be submitted at least semiannually, or at a more frequent period if specified in the applicable requirement or by the department. Such progress reports shall contain the following:

(i) dates for achieving the activities, milestones, or compliance required in the schedule of compliance, and dates when such activities, milestones or compliance were achieved; and

(ii) an explanation of why any dates in the schedule of compliance were not or will not be met, and any preventive or corrective measures adopted.

Condition 18: Off Permit Changes Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 201-6.5 (f) (6)

Item 18.1: No permit revision will be required for operating changes that contravene an express permit term, provided that such changes would not violate applicable requirements as defined under this Part or contravene federally enforceable monitoring (including test methods), recordkeeping, reporting, or compliance certification permit terms and conditions. Such changes may be made without requiring a permit revision, if the changes are not modifications under any provision of title I of the act and the changes do not exceed the emissions allowable under the permit (whether expressed therein as a rate of emissions or in terms of total emissions) provided that the facility provides the administrator and the department with written notification as required belowPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 18 DRAFT in advance of the proposed changes within a minimum of seven days. The facility owner or operator, and the department shall attach each such notice to their copy of the relevant permit.

(i) For each such change, the written notification required above shall include a brief description of the change within the permitted facility, the date on which the change will occur, any change in emissions, and any permit term or condition that is no longer applicable as a result of the change.

(ii) The permit shield described in section 6 NYCRR 201-6.6 shall not apply to any change made pursuant to this paragraph.

Condition 19: Required Emissions Tests Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 19.1: For the purpose of ascertaining compliance or non-compliance with any air pollution control code, rule or regulation, the commissioner may require the person who owns such air contamination source to submit an acceptable report of measured emissions within a stated time.

Condition 20: Accidental release provisions. Effective for entire length of Permit

Applicable Federal Requirement:40 CFR Part 68

Item 20.1: If a chemical is listed in Tables 1,2,3 or 4 of 40 CFR §68.130 is present in a process in quan tities greater than the threshold quantity listed in Tables 1,2,3 or 4, the following requirements will apply:

a) The owner or operator shall comply with the provisions of 40 CFR Part 68 and;

b) The owner or operator shall submit at the time of permit issuance (if not previously submitted) one of the following, if such quantities are present:

1) A compliance schedule for meeting the requirements of 40 CFR Part 68 by the date provided in 40 CFR §68.10(a) or,

2) A certification statement that the source is in compliance with all requirements of 40 CFR Part 68, including the registration and submission of the Risk Management Plan. Information should be submitted to:

Risk Management Plan Reporting Center C/O CSC 8400 Corporate Dr Carrollton, Md. 20785

Condition 21: Recycling and Emissions Reduction Effective for entire length of PermitPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 19 DRAFT Applicable Federal Requirement:40CFR 82, Subpart F

Item 21.1: The permittee shall comply with all applicable provisions of 40 CFR Part 82.

The following conditions are subject to annual compliance certification requirements for Title V permits only.

Condition 22: Emission Unit Definition Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 22.1: The facility is authorized to perform regulated processes under this permit for: Emission Unit: 1-00001 Emission Unit Description: BOILER NO. 1 - A COMBUSTION ENGINEERING TANGENTIALLY-FIRED BOILER WITH A MAXIMUM HEAT INPUT OF 5546 MMBTU/HR. THIS UNIT CAN FIRE NATURAL GAS OR NO. 6 FUEL OIL (0.37% MAXIMUM SULFUR CONTENT). THIS EMISSION UNIT ALONG WITH BOILER NO. 2 EMPLOYS SYSTEM-WIDE AVERAGING FOR THE DETERMINATION AND REPORTING OF NOx EMISSIONS.

Building(s): BLD01

Item 22.2: The facility is authorized to perform regulated processes under this permit for: Emission Unit: 1-00002 Emission Unit Description: BOILER NO. 2 - A BABCOCK & WILCOX OPPOSED WALL-FIRED BOILER WITH A MAXIMUM HEAT INPUT OF 5,374 MMBTU/HR. THIS UNIT CAN FIRE NATURAL GAS OR NO. 6 FUEL OIL (0.37% MAX SULFUR CONTENT). THIS EMISSION UNIT ALONG WITH BOILER NO. 1 EMPLOYS SYSTEM-WIDE AVERAGING FOR THE DETERM INATION AND REPORTING OF NOx EMISSIONS.

Building(s): BLD01

Item 22.3: The facility is authorized to perform regulated processes under this permit for: Emission Unit: 1-WAWTP Emission Unit Description: WASTEWATER TREATMENT PLANT OPERATES TOPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 20 DRAFT TREAT RUNOFF FROM PLANT DRAINS. THE PLANT USES ACID AND CAUSTIC TO MODIFY THE PH OF THE WATER AND FERROUS SULFATE TO PRECIPITATE SOLIDS INCLUDING METALS. CLEAN WATER IS DISCHARGED TO THE HUDSON RIVER. OPERATIONS ARE MONITORED THROUGH CONDITIONS WITHIN THE EXISTING SPDES PERMIT NO. 3-3922-3-3. FUGITIVE EMISSIONS WERE DETERMINED FOR OUTFA LL 001 WHICH IS THE DISCHARGE POINT FOR THE WASTEWATER TREATMENT PLANT. OTHER DISCHARGE POINTS MUST MONITOR FOR OIL AND GREASE CONTENT, BUT VOC EMISSIONS ARE EXPECTED TO BE NEGLIGIBLE.

Building(s): WWTP

Condition 23: Air pollution prohibited Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 211.1

Item 23.1: 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.

Condition 24: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 225-1.2 (a) (2)

Item 24.1: The Compliance Certification activity will be performed for the Facility.

Item 24.2: Compliance Certification shall include the following monitoring:

Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: No person shall use, purchase, sell, or offer for sale any residual fuel oil which has a sulfur content greater than the limit presented below. A log of the sulfur content in oil per delivery must be maintained on site for a minimum of five years after the date of the last entry.

Work Practice Type: PARAMETER OF PROCESS MATERIALPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 21 DRAFT Process Material: RESIDUAL FUEL (#4, #5 AND/OR #6 FUEL OIL) Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.37 percent by weight Reference Test Method: EPA approved Monitoring Frequency: PER DELIVERY Averaging Method: MAXIMUM - NOT TO BE EXCEEDED AT ANY TIME (INSTANTANEOUS/DISCRETE OR GRAB) Reporting Requirements: SEMI-ANNUALLY (ANNIVERSARY) Initial Report Due: 30 days after first semi-annual (6 month) period following Permit Issue Date

Condition 25: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 225-1.7 (c)

Item 25.1: The Compliance Certification activity will be performed for the Facility.

Item 25.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Part 225-1.7(c) requires that measurements must be made daily of the rate of each fuel burned. Also, the facility must measure the gross heat content and ash content of each fuel burned (determined at least once per week), and the average electrical output (daily) and hourly generation rate. This information must be retained by the source owner for a period of three years.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

Condition 26: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 225-1.8 (a)

Item 26.1: The Compliance Certification activity will be performed for the Facility.

Item 26.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The permittee shall retain fuel oil supplierPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 22 DRAFT certifications for each shipment of oil received. Such certifications shall contain, as a minimum: supplier name, date of shipment, quantity shipped, heating value of the oil, oil sulfur content, and the method used to determine the sulfur content. Such certifications shall be available for inspection by, or submittal to, NYSDEC upon request.

Monitoring Frequency: PER DELIVERY Averaging Method: ANNUAL TOTAL ROLLED DAILY Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).

Condition 27: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.3 (a)

Item 27.1: The Compliance Certification activity will be performed for the Facility.

Item 27.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1. Objective

The purpose of this condition is to identify essential elements of the Opacity Reduction Program.

2. Opacity Monitors

Respondent's opacity monitors shall be operated and maintained in accordance with the requirements of 40 CFR Part 75, the manufacturer's recommendations and Respondent's QA/QC program.

3. Opacity Incident Reporting

Respondent shall prepare an Opacity Incident Report (OIR) for each excess opacity event (refer to Respondents's Opacity Compliance Programs for each station). An excess opacity emissions event consists of one or more six minute periods in which the average opacity exceeds 20%, which are caused by the same circumstance.

Each OIR shall include a description of the sequence of events, an explanation of the cause of the event, a description of the corrective actions taken and proposed preventive measures. The OIRs will be maintained for aPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 23 DRAFT period of five years and shall be made available to DEC on demand.

Respondent shall submit written reports of excess emissions for each calendar quarter with the nature and cause of the emissions in accordance with 6NYCRR §227-1.4. Such reports shall include a summary page providing: the total number of reported exceedances; the total number of unexcused exceedances; monitor down time expressed as a percentage of operating time; and compliance rates, based on both total reported and unexcused exceedances, expressed (to the hundredth) as a percentage of operating time.

4. Quality Assurance Program

Respondent shall implement a quality assurance program consisting of quarterly data reviews and bi-annual program audits. Quarterly data reviews shall be resumed during which the opacity data collected during the quarter shall be examined to assure that exceedance events are properly documented with an OIR and required notifications have been made. A quarterly opacity report shall be submitted to NYSDEC for review and approval. The reports shall include a tabulation of all opacity exceedances, except for those excluded under 6NYCRR Part 227. It shall also identify the causes of the events (non-exempt exceedance, or startup, shutdown, off line maintenance, equipment malfunction). The reports shall be revised to include a tabulation of opacity monitor downtime (except zero and span checks) and missing data.

Program audits consisting of a thorough review of the opacity monitoring program shall be conducted by June 30 and December 31 of each year. The audits shall be verified by both daily zero and span checks and annual calibration error assessments. They shall also review the documentation to assure that all records are complete, and proper documentation is maintained of all OIRs and monitor maintenance.

5. Awareness, Communications and Training

Opacity awareness shall be promoted within Respondent's Electric Production Division by developing opacity awareness training for plant operators and maintenance personnel and supervisors at the station level.

The opacity awareness training shall include a review of opacity regulations and monitoring requirements, a discussion of opacity monitoring equipment, an explanation of the source of opacity and the impact of changes toPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 24 DRAFT plant equipment and operating parameters upon opacity, and a discussion of correction actions to be taken when excessive opacity levels occur.

Respondent's executive management shall be informed of opacity performance on a quarterly basis.

6. Preventive Maintenance

Respondent shall implement a preventive maintenance program for the CEMs, which shall include daily, quarterly and bi-annual maintenance activities. The quarterly and bi-annual activities shall be documented on preventive maintenance checklists, which shall be maintained on-site for five years.

Corrective maintenance activities shall be performed as needed. All corrective maintenance activities shall be documented on Corrective Action Sheets. These sheets shall be maintained on-site for five years.

The preventive maintenance program shall include the following daily, weekly and scheduled outage activities:

BOWLINE POINT

Daily Activities (when burning no. 6 oil) Check fuel oil and steam gauges Check auxiliary air and fuel air damper operations Perform fuel oil viscosity readings as needed during oil burning operation Inspect burner tilts (Unit 1 only) Soot blower PM

Weekly Activities (when burning no. 6 oil Oil gun tip inspection Oil gun disassemble and repair as needed Inspect fuel oil piping and heat tracing Inspect condition of fuel oil and steam hoses

Scheduled Outage Activities Inspection and calibration of: Fuel oil flow transmitter Fuel oil pressure transmitter Fuel gas pressure transmitter Air flow transmitter

7. Root Cause Analysis and Corrective ActionsPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 25 DRAFT Respondent shall identify deficiencies which cause opacity exceedances by means of root cause analysis. At the beginning of each calendar year, the prior year's opacity OIRs shall be reviewed to identify and consistent patterns for opacity exceedances. Patterns that are found shall be investigated and corrective actions (e.g. revised maintenance procedures, equipment upgrades, and personnel refresher training for opacity awareness) shall be developed. These shall be summarized in a report to Respondent's management by March 31st of each year. These reports shall be maintained for a period of 5 (five) years and shall be made available to DEC upon request.

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).

Condition 28: Permit Requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-1.6 (a)

Item 28.1: The CAIR designated representative of each CAIR NOx Ozone Season source shall: (i) submit to the department a complete CAIR permit application under section 243-3.3 in accordance with the deadlines specified in section 243-3.2; and (ii) submit in a timely manner any supplemental information that the department determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit.

The owners and operators of each CAIR NOx Ozone Season source shall have a CAIR permit issued by the department under Subpart 243-3 for the source and operate the source and the unit in compliance with such CAIR permit.

Condition 29: Monitoring requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-1.6 (b)Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 26 DRAFT Item 29.1: The emissions measurements recorded and reported in accordance with Subpart 243-8 shall be used to determine compliance by each CAIR NOx Ozone Season source with the CAIR NOx Ozone Season emissions limitation under subdivision (c) of this section.

Condition 30: NOx Ozone Season Emission Requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-1.6 (c)

Item 30.1: As of the allowance transfer deadline for a control period, the owners and operators of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source shall hold, in the source's compliance account, CAIR NOx Ozone Season allowances available for compliance deductions for the control period under section 243-6.5(a) in an amount not less than the tons of total nitrogen oxides emissions for the control period from all CAIR NOx Ozone Season units at the source, as determined in accordance with Subpart 243-8. The CAIR NOx ozone season is the period beginning May 1 of a calendar year, except as provided in section 243-1.6(c)(2), and ending on September 30 of the same year, inclusive.

A CAIR NOx Ozone Season unit shall be subject to the requirements under paragraph (c)(1) of this section for the control period starting on the later of May 1, 2009 or the deadline for meeting the unit's monitor certification requirements under sections 243-8.1(b)(1), (2), (3), or (7) and for each control period thereafter.

A CAIR NOx Ozone Season allowance shall not be deducted, for compliance with the requirements under paragraph (c)(1) of this section, for a control period in a calendar year before the year for which the CAIR NOx Ozone Season allowance was allocated.

CAIR NOx Ozone Season allowances shall be held in, deducted from, or transferred into or among CAIR NOx Ozone Season Allowance Tracking System accounts in accordance with Subparts 243-6, 243-7, and 243-9.

A CAIR NOx Ozone Season allowance is a limited authorization to emit one ton of nitrogen oxides in accordance with the CAIR NOx Ozone Season Trading Program. No provision of the CAIR NOx Ozone Season Trading Program, the CAIR permit application, the CAIR permit, or an exemption under section 243-1.5 and no provision of law shall be construed to limit the authority of the State or the United States to terminate or limit such authorization.

A CAIR NOx Ozone Season allowance does not constitute a property right.

Upon recordation by the Administrator under Subpart 243-6, 243-7, or 243-9, every allocation, transfer, or deduction of a CAIR NOx Ozone Season allowance to or from a CAIR NOx Ozone Season source's compliance account is incorporated automatically in any CAIR permit of the

source.
Condition 31: Excess emission requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-1.6 (d)Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 27 DRAFT Item 31.1: If a CAIR NOx Ozone Season source emits nitrogen oxides during any control period in excess of the CAIR NOx Ozone Season emissions limitation, then:

(1) the owners and operators of the source and each CAIR NOx Ozone Season unit at the source shall surrender the CAIR NOx Ozone Season allowances required for deduction under section 243-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law; and

(2) each ton of such excess emissions and each day of such control period shall constitute a separate violation of this Subpart, the Act, and applicable State law.

Condition 32: Recordkeeping and reporting requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-1.6 (e)

Item 32.1: Unless otherwise provided, the owners and operators of the CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator.

(i) The certificate of representation under section 243-2.4 for the CAIR designated representative for the source and each CAIR NOx Ozone Season unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under section 243-2.4 changing the CAIR designated representative.

(ii) All emissions monitoring information, in accordance with Subpart 243-8, provided that to the extent that Subpart 243-8 provides for a three-year period for recordkeeping, the three-year period shall apply.

(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR NOx Ozone Season Trading Program.

(iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR NOx Ozone Season Trading Program or to demonstrate compliance with the requirements of the CAIR NOx Ozone Season Trading Program.

Condition 33: Authorization and responsibilities of CAIR designated representative Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-2.1

Item 33.1: Except as provided under section 243-2.2, each CAIR NOx Ozone Season source, including all CAIR NOx Ozone Season units at the source, shall have one and only one CAIR designated representative, with regard to all matters under the CAIR NOx Ozone Season Trading ProgramPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 28 DRAFT concerning the source or any CAIR NOx Ozone Season unit at the source.

The CAIR designated representative of the CAIR NOx Ozone Season source shall be selected by an agreement binding on the owners and operators of the source and all CAIR NOx Ozone Season units at the source and shall act in accordance with the certification statement in section 243-2.4(a)(4)(iv).

Upon receipt by the Administrator of a complete certificate of representation under section 243-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx Ozone Season source represented and each CAIR NOx Ozone Season unit at the source in all matters pertaining to the CAIR NOx Ozone Season Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit.

No CAIR permit will be issued, no emissions data reports will be accepted, and no CAIR NOx Ozone Season Allowance Tracking System account will be established for a CAIR NOx Ozone Season unit at a source, until the Administrator has received a complete certificate of representation under section 243-2.4 for a CAIR designated representative of the source and the CAIR NOx Ozone Season units at the source.

Each submission under the CAIR NOx Ozone Season Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR NOx Ozone Season source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibi lity for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

Condition 34: Certificate of representation Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-2.4

Item 34.1: Unless otherwise required by the department or the Administrator, documents of agreement referred to in the certificate of representation shall not be submitted to the department or the Administrator. Neither the department nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.

Condition 35: General requirements Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-8.1Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 29 DRAFT Item 35.1: The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR NOx Ozone Season unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this Subpart and in Subpart H of 40 CFR Part 75. For purposes of complying with such requirements, the definitions in section 243-1.2 and in 40 CFR 72.2 shall apply, and the terms "affected unit," "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR NOx Ozone Season unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 243-1.2. The owner or operator of a unit that is not a CAIR NOx Ozone Season unit but that is monitored under 40 CFR 75.72(b)(2)(ii) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR NOx Ozone Season unit.

'Requirements for installation, certification, and data accounting.' The owner or operator of each CAIR NOx Ozone Season unit shall:

(1) install all monitoring systems required under this Subpart for monitoring NOx mass emissions and individual unit heat input (including all systems required to monitor NOx emission rate, NOx concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with 40 CFR 75.71 and 40 CFR 75.72);

(2) successfully complete all certification tests required under section 243-8.2 and meet all other requirements of this Subpart and 40 CFR Part 75 applicable to the monitoring systems under paragraph 243-8.1(a)(1); and

(3) record, report, and quality-assure the data from the monitoring systems under paragraph (a)(1) of this section.

Condition 36: Prohibitions Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-8.1

Item 36.1: No owner or operator of a CAIR NOx Ozone Season unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this Subpart without having obtained prior written approval in accordance with section 243-8.6.

No owner or operator of a CAIR NOx Ozone Season unit shall operate the unit so as to discharge, or allow to be discharged, NOx emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.

No owner or operator of a CAIR NOx Ozone Season unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording NOx mass emissions discharged into the atmosphere or heat input, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.

No owner or operator of a CAIR NOx Ozone Season unit shall retire or permanently discontinuePermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 30 DRAFT use of the continuous emission monitoring system, any component thereof, or any other approved monitoring system under this Subpart, except under any one of the following circumstances: (i) during the period that the unit is covered by an exemption under section 243-1.5 that is in effect; (ii) the owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this Subpart and 40 CFR Part 75, by the department for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or (iii) the CAIR designated representative submits notification of the date of certification testing of a replacement monitoring system for the retired or discontinued monitoring system in accordance with section 243-8.2(d)(3)(i).

Condition 37: Quarterly reports Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 243-8.5 (d)

Item 37.1: The CAIR designated representative shall submit quarterly reports, as follows:

If the CAIR NOx Ozone Season unit is subject to an Acid Rain emissions limitation or a CAIR NOx emissions limitation or if the owner or operator of such unit chooses to report on an annual basis under this Subpart, the CAIR designated representative shall meet the requirements of Subpart H of 40 CFR Part 75 (concerning monitoring of NOx mass emissions) for such unit for the entire year and shall report the NOx mass emissions data and heat input data for such unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with:

(i) for a unit that commences commercial operation before July 1, 2007, the calendar quarter covering May 1, 2008 through June 30, 2008;

(ii) for a unit that commences commercial operation on or after July 1, 2007, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 243-8.1(b), unless that quarter is the third or fourth quarter of 2007 or the first quarter of 2008, in which case reporting shall commence in the quarter covering May 1, 2008 through June 30, 2008.

The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.73(f).

For CAIR NOx Ozone Season units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Annual Trading Program, CAIR SO2 Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by this Subpart.

Condition 38: Compliance certification Effective for entire length of PermitPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 31 DRAFT Applicable Federal Requirement:6 NYCRR 243-8.5 (e)

Item 38.1: The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:

(1) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the quality assurance procedures and specifications;

(2) for a unit with add-on NOx emission controls and for all hours where NOx data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate NOx emissions; and

(3) for a unit that is reporting on a control period basis under subparagraph (d)(2)(ii) of this section, the NOx emission rate and NOx concentration values substituted for missing data under Subpart D of 40 CFR Part 75 are calculated using only values from a control period and do not systematically underestimate NOx emissions.

Condition 39: CAIR NOx Annual Trading Program General Conditions Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 244-1

Item 39.1: 1) As of midnight of March 1, or midnight of the first business day thereafter if March 1 is not a business day, the owners and operators shall hold, in their compliance account, Clean Air Interstate Rule (CAIR) NOx allowances available for compliance deductions for the previous control period (January 1 through December 31), in an amount not less than the total tons of nitrogen oxides emissions from all CAIR NOx units at the source during that control period. A CAIR NOx allowance shall not be deducted for a control period in a calendar year before the year for which the CAIR NOx allowance was allocated. [244-1.6(c)(1), 244-1.2(b)(5), 244-1.2(b)(36), 244-1.6(c)(3)]

2) The owners and operators shall hold in their compliance account, CAIR NOx allowances available for compliance deductions for the control period starting on the later of January 1, 2009 or the deadline for meeting a CAIR NOx unit's monitor certification requirements under section 244-8.1(b)(1), (2), or (5) and for each control period thereafter. [244-1.6(c)(2)]

3) If a CAIR NOx source emits nitrogen oxides during any control period in excess of the CAIR NOx emissions limitation, the owners and operators of the CAIR NOx source shall surrender the CAIR NOx allowances required for deduction under 6NYCRR Part 244-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this permit, the Act, and applicable State law. [(244-1.6(d)]

4) Unless otherwise provided, the owners and operators of the CAIR NOx source shall keep onPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 32 DRAFT site each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator: [244-1.6(e)] (i) The certificate of representation under 6NYCRR Part 244-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five year period unti l such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 244-2.4 changing the CAIR designated representative. (ii) All emissions monitoring information, in accordance with 6NYCRR Part 244-8, provided that to the extent that 6NYCRR Part 244-8 provides for a three year period for recordkeeping, the three year period shall apply. (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR NOx Annual Trading Program. (iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR NOx Annual Trading Program or to demonstrate compliance with the requirements of the CAIR NOx Annual Trading Program.

Condition 40: Designated CAIR Representative Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 244-2

Item 40.1: 1) Each Clean Air Interstate Rule (CAIR) NOx source shall have one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 244-2.2, with regard to all matters under the CAIR NOx Annual Trading Program. The CAIR designated representative shall be selected by an agreement binding on the owners and operators of the source and act in accordance with the certification statement in 6NYCRR Part 244-2.4(a)(4)(iv). Upon receipt by the Administrator of a complete certificate of representation under 6NYCRR Part 244-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx source represented in all matters pertaining to the CAIR NOx Annual Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source. [244-2.1(a), (b) & (c)]

(2) Each submission under the CAIR NOx Annual Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR NOx source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment." [244-2.1(e)]

Condition 41: Compliance CertificationPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 33 DRAFT Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 244-8

Item 41.1: The Compliance Certification activity will be performed for the Facility.

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

Item 41.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Monitoring and Reporting NOX emissions

(1) The owners and operators, and to the extent applicable, the CAIR designated representative shall comply with all recordkeeping and reporting requirements in this condition, the applicable recordkeeping and reporting requirements under 40 CFR 75, and the requirements of 6NYCRR Part 244-2.1(e)(1).

(2) The CAIR designated representative shall submit quarterly reports of the the NOx mass emissions data and heat input data for each CAIR NOx unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under 6NYCRR Part 244-8.1(b), unless that quarter is the third or fourth quarter of 2007, in which case reporting shall commence in the quarter covering January 1, 2008 through March 31, 2008.

(3) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.73(f).

(4) For CAIR NOx units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Ozone Season Trading Program, CAIR SO2 Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by thisPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 34 DRAFT Subpart.

(5) 'Compliance certification.' The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:

(i) the monitoring data submitted were recorded in accordance with the applicable requirements of 6NYCRR Part 244 and 40 CFR Part 75, including the quality assurance procedures and specifications; and

(ii) for a unit with add-on NOx emission controls and for all hours where NOx data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate NOx emissions.

(6) Whenever any monitoring system fails to meet the quality-assurance and quality-control requirements or data validation requirements of 40 CFR part 75, data shall be substituted using the applicable missing data procedures in Subpart D or Subpart H of, or appendix D or appendix E to 40 CFR part 75. [ 244-8.3(a) ]

(7) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under 6NYCRR Part 244-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record NOx mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b) . Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site.Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 35 DRAFT Any fuel flowmeter system, and any excepted NOx monitoring system under appendix E to 40 CFR part 75, under 6NYCRR Part 244-8.1(a)(1) are subject to the recertification requirements in 40 CFR 75.20(g)(6). [224-8.2(d)(2)

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

Condition 42: CAIR SO2 Trading Program General Provisions Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 245-1

Item 42.1: 1) As of midnight of March 1, or midnight of the first business day thereafter (if March 1 is not a business day) for a control period, the owners and operators of each Clean Air Interstate Rule (CAIR) SO2 source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO2 allowances available for compliance deductions for the control period (January 1 through December 31) not less than the tons of total sulfur dioxide emissions for the control period from all CAIR SO2 units at the source. A CAIR SO2 allowance shall not be deducted, for compliance with the requirements under paragraph (2) of this section, for a control period in a calendar year before the year for which the CAIR SO2 allowance was allocated. [(245-1.2(b)(5), 245-1.6(c)(1), 245-1.2(b)(36), 245-1.6(c)(3)]

2) The owners and operators shall hold in their compliance account, CAIR SO2 allowances available for compliance deductions for the control period starting on the later of January 1, 2010 or the deadline for meeting a CAIR SO2 unit's monitor certification requirements under section 245-8.1(b)(1), (2), or (5) and for each control period thereafter. [245-1.6(c)(2)]

3) If a CAIR SO2 source emits sulfur dioxide during any control period in excess of the CAIR SO2 emissions limitation, the owners and operators of the source shall surrender the CAIR SO2 allowances required for deduction under 6NYCRR Part 245-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this Subpart, the Act, and applicable State law. [(245-1.6(d)]

4) Unless otherwise provided, the owners and operators of the CAIR SO2 source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator: [245-1.6(e)] (i) The certificate of representation under 6NYCRR Part 245-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 245-2.4 changing the CAIR designated representative.Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 36 DRAFT (ii) All emissions monitoring information, in accordance with 6NYCRR Part 245-8, provided that to the extent that 6NYCRR Part 245-8 provides for a three-year period for recordkeeping, the three-year period shall apply. (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program. (iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR SO2 Trading Program or to demonstrate compliance with the requirements of the CAIR SO2 Trading Program.

Condition 43: Designated CAIR Representative Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 245-2

Item 43.1: 1) Each CAIR SO2 source shall have one and only one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 245-2.2, with regard to all matters under the CAIR SO2 Trading Program. The CAIR designated representative of the CAIR SO2 source shall be selected by an agreement binding on the owners and operators of the source and all CAIR SO2 units at the source and shall act in accordance with the certification statement in 6NYCRR Part 245-2.4(a)(4)(iv). Upon r eceipt by the Administrator of a complete certificate of representation under 6NYCRR Part 245-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR SO2 source represented and each CAIR SO2 unit at the source in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit. [245-2.1(a), (b) & (c)]

(2) Each submission under the CAIR SO2 Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR SO2 source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment." [245-2.1(e)]

Condition 44: Compliance Certification Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 245-8

Item 44.1: The Compliance Certification activity will be performed for the Facility.

Regulated Contaminant(s):Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 37 DRAFT CAS No: 007446-09-5 SULFUR DIOXIDE

Item 44.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Monitoring and Reporting SO2 emissions:

1) The owners and operators, and to the extent applicable, the Clean Air Interstate Rule (CAIR) designated representative, of a CAIR SO2 unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in Subpart 6 NYCRR Part 245-8 and in 40 CFR Part 75, Subparts F and G. For purposes of complying with such requirements, the definitions in section 245-1.2 and 40 CFR 72.2 shall apply, and the terms "affected unit," "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR SO2 unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 245-1.2. The owner or operator of a unit that is not a CAIR SO2 unit but that is monitored under 40 CFR 75.16(b)(2) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR SO2 unit. [245-8.1]

2)The owner or operator of each CAIR SO2 unit shall: [245-8.1(a)] (i) install all monitoring systems required under this Subpart for monitoring SO2 mass emissions and individual unit heat input (including all systems required to monitor SO2 concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with 40 CFR 75.11 and 40 CFR 75.16); (ii) successfully complete all certification tests required under Part 245-8.2 and meet all other requirements of this section and 40 CFR Part 75 applicable to the monitoring systems under this section; and (iii) record, report, and quality-assure the data from the monitoring systems under paragraph of this section.

3) The owner or operator shall meet the monitoring system certification and other requirements of section 245-8.1(a)(1) and (2) on or before the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under section 245-8.1(a)(1) on and after the following dates. [245-8.1(b)]Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 38 DRAFT (i) For the CAIR SO2 unit that commences commercial operation before July 1, 2008, by January 1, 2009. (ii) For the CAIR SO2 unit that commences commercial operation on or after July 1, 2008, by the later of the following dates: January 1, 2009; or 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.

4) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under section 245-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record SO2 mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include: replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system under section 245-8.1(a)(1) is subject to the recertification requirements in 40 CFR 75.20(g)(6). [245-8.2(d)(2)]

5) Whenever any monitoring system fails to meet the quality-assurance and quality-control requirements or data validation requirements of 40 CFR Part 75, data shall be substituted using the applicable missing data procedures in Subpart D of or appendix D to 40 CFR Part 75. [245-8.3(a)]

6) The CAIR designated representative shall comply with all recordkeeping and reporting requirements in section 245-8.3, the applicable recordkeeping and reporting requirements in Subparts F and G of 40 CFR Part 75, and the requirements of section 245-2.1(e)(1). [245-8.5(a)]

7) The owner or operator of a CAIR SO2 unit shall comply with requirements of 40 CFR 75.62 for monitoring plans. [245-8.5(b)]Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 39 DRAFT 8) The CAIR designated representative shall submit an application to the department within 45 days after completing all initial certification or recertification tests required under section 245-8.2, including the information required under 40 CFR 75.63. [245-8.5(c) ]

9) The CAIR designated representative shall submit quarterly reports of the SO2 mass emissions data and heat input data for each CAIR SO2 unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with: [245-8.5(d)(1)] i) the calendar quarter covering January 1, 2009 through March 31, 2009 for a unit that commences commercial operation before July 1, 2008; or ii) for a unit that commences commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 245-8.1(b), unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 through March 31, 2009.

10) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.64. [245-8.5(d)(2)]

11) For CAIR SO2 units that are also subject to an Acid Rain emissions limitation or the CAIR NOX Annual Trading Program, CAIR NOX Ozone Season Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the SO2 mass emission data, heat input data, and other information required by this Subpart. [245-8.5(d)(3)]

12) The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that: [245-8.5(e)] i) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the qualityPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 40 DRAFT assurance procedures and specifications; and ii) for a unit with add-on SO2 emission controls and for all hours where SO2 data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate SO2 emissions.

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

Condition 45: Monitoring requirements. Effective for entire length of Permit

Applicable Federal Requirement:40CFR 60.13, NSPS Subpart A

Item 45.1: All continuous monitoring systems and devices shall be installed, calibrated, maintained, and operated in accordance with the requirements of section 60.13.

Condition 46: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:40CFR 72.6(a)(2), Subpart A

Item 46.1: The Compliance Certification activity will be performed for the Facility.

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

Item 46.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Bowline Unit 1 (5,546 mmBTU/hr) and Unit 2 (5,374 mmBTU/hr) are affected units subject to the Acid Rain Program under Title IV of the Federal Clean Air Act. For affected units, the facility must continuously monitor, maintain and certify monitoring systems for opacity, SO2 emissions, NOx emissions, SO2 removal (if applicable), CO2 emissions and volumetric flow rate in accordance with the requirements of 40CFR Part 75. The attached Acid Rain permit is incorporated into this Title V permit.

Monitoring Frequency: CONTINUOUS Reporting Requirements: ANNUALLY (CALENDAR)Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 41 DRAFT Reports due 30 days after the reporting period. Subsequent reports are due every 12 calendar month(s).

Condition 47: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:40CFR 75.10(a), Subpart B

Item 47.1: The Compliance Certification activity will be performed for the Facility.

Item 47.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner or operator shall measure opacity and all SO2, NOx, and CO2 emissions for each affected unit as follows: (1) The owner or operator shall install, certify, operate, and maintain, in accordance with all the requirements of this part, a SO2 CEMS and a flow monitoring system with the automated data acquisition and handling system for measuring and recording SO2 concentration (in ppm), volumetric gas flow (in scfh), and SO2 mass emissions (in lb/hr) discharged to the atmosphere, except as provided in §§75.11 and 75.16 and subpart E of this part; (2) The owner or operator shall install, certify, operate, and maintain, in accordance with all the requirements of this part, a NOX CEMS (consisting of a NOX pollutant concentration monitor and an O2 or CO2 diluent gas monitor) with the automated data acquisition and handling system for measuring and recording NOX concentration (in ppm), O2 or CO2 concentration (in percent O2 or CO2) and NOX emission rate (in lb/mmBtu) discharged to the atmosphere. The owner or operator shall account for total NOX emissions, both NO and NO2, either by monitoring for both NO and NO2 or by monitoring for NO only and adjusting the emissions data to account for NO2; (3) The owner or operator shall install, certify, operate, and maintain, in accordance with all the requirements of this part, a CO2 CEMS and a flow monitoring system with the automated data acquisition and handling system for measuring and recording CO2 concentration (in ppm or percent), volumetric gas flow (in scfh), and CO2 mass emissions (in tons/hr) discharged to the atmosphere; (4) The owner or operator shall install, certify, operate, and maintain, in accordance with all the requirements in this part, a continuous opacity monitoringPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 42 DRAFT system with the automated data acquisition and handling system for measuring and recording the opacity of emissions (in percent opacity) discharged to the atmosphere.

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

** ** Emission Unit Level  

Condition 48: Emission Point Definition By Emission Unit Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 48.1: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: 1-00001

Emission Point: 00001 Height (ft.): 286 Diameter (in.): 225 NYTMN (km.): 4562.048 NYTME (km.): 586.694

Item 48.2: The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: 1-00002

Emission Point: 00002 Height (ft.): 286 Diameter (in.): 225 NYTMN (km.): 4562.136 NYTME (km.): 586.679

Condition 49: Process Definition By Emission Unit Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 49.1: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00001 Process: 1GS Source Classification Code: 1-01-006-04 Process Description: A NATURAL GAS-FIRED STATIONARY COMBUSTION UNIT RATED AT 5546 MMBTU/HR WITH 20 BURNERS AND QUADRUPLE NO ZZLE COMBUSTION. UNIT OPERATED TO PRODUCE ELECTRICITY. OFF-STOICHIOMETRIC FIRING IS USED FOR NOxPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 43 DRAFT CONTROL.

Emission Source/Control: 00UN1 - Combustion Design Capacity: 5,546 million Btu per hour

Item 49.2: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00001 Process: 1OL Source Classification Code: 1-01-004-04 Process Description: A TANGENTIALLY NO. 6 OIL-FIRED STATIONARY COMBUSTION UNIT RATED AT 5546 MMBTU/HR WITH 20 BURNERS. UNIT OPERATED TO PRODUCE ELECTRICITY. OFF-STOICHIOMETRIC FIRING IS USED FOR NOx CONTROL.

Emission Source/Control: 00UN1 - Combustion Design Capacity: 5,546 million Btu per hour

Item 49.3: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00001 Process: 1WL Source Classification Code: 1-01-013-02 Process Description: A TANGENTIALLY-FIRED STATIONARY COMBUSTION UNIT RATED AT 5546 MMBTU/HR WITH 20 BURNERS. UNIT OPERATED TO PRODUCE ELECTRICITY. OFF-STOICHIOMETRIC FIRING IS USED FOR NOx CONTROL. THIS EMISSIONS UNIT ALSO FIRES ON-SITE GENERATED WASTE OIL.

Emission Source/Control: 00UN1 - Combustion Design Capacity: 5,546 million Btu per hour

Item 49.4: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00002 Process: 2GS Source Classification Code: 1-01-006-04 Process Description: A BABCOCK & WILCOX OPPOSED WALL-FIRED BOILER FIRES NATURAL GAS AND HAS A MAXIMUM FIRING RATE OF 5347 MMBTU/HR WITH 32 BURNERS. THIS UNIT PROVIDES STEAM TO GENERATE ELECTRICITY. THIS UNIT USES OFF-STOICHIOMETRIC FIRING, OVERFIRE AIR, AND WINDBOX FLUE GAS RECIRCULATION TO CONTROL NOx.Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 44 DRAFT Emission Source/Control: 00UN2 - Combustion Design Capacity: 5,374 million Btu per hour

Item 49.5: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00002 Process: 2OL Source Classification Code: 1-01-004-04 Process Description: A BABCOCK & WILCOX OPPOSED WALL-FIRED BOILER FIRES NO. 6 FUEL OIL AND HAS A MAXIMUM FIRING RATE OF 5347 MMBTU/HR WITH 32 BURNERS. THIS UNIT PROVIDES STEAM TO GENERATE ELECTRICITY. THIS UNIT USES OFF-STOICHIOMETRIC FIRING, OVERFIRE AIR, AND WINDBOX FLUE GAS RECIRCULATION FOR NOx CONTROL.

Emission Source/Control: 00UN2 - Combustion Design Capacity: 5,374 million Btu per hour

Item 49.6: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-00002 Process: 2WL Source Classification Code: 1-01-013-02 Process Description: This Babcock and Wilcox opposed wall-fired boiler has a maximum firing rate of 5,374 mmBTU/hr and has 32 burners. This unit uses off-stoichiometric firing, overfire air and windbox flue gas recirculation for NOx control. This emission unit also fires on-site generated waste oil.

Emission Source/Control: 00UN2 - Combustion Design Capacity: 5,374 million Btu per hour

Item 49.7: This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 1-WAWTP Process: W01 Source Classification Code: 5-01-007-69 Process Description: OUTFALL 001F OF THE WASTEWATER TREATMENT PLANT.

Emission Source/Control: WAWTP - Process

Condition 50: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 50.1: The Compliance Certification activity will be performed for:Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 45 DRAFT Emission Unit: 1-00001

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

Item 50.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Effective January 1, 2014

NOx emissions limited to 0.15 lbs/Million BTU 30 day average during the non-ozone season

Manufacturer Name/Model Number: NOx Analyzer Upper Permit Limit: 0.15 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: CONTINUOUS Averaging Method: 30 DAY ROLLING AVERAGE, ROLLED DAILY Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 51: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 51.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00001

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

Item 51.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Effective January 1, 2014

NOx emissions limited to 0.15 lbs/Million BTU 24 hour average during ozone season

Manufacturer Name/Model Number: NOx Analyzer Upper Permit Limit: 0.15 pounds per million BtusPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 46 DRAFT Reference Test Method: EPA Approved Monitoring Frequency: CONTINUOUS Averaging Method: 24-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 52: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (f)

Item 52.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: 1-00001

Emission Unit: 1-00002

Item 52.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The emission limits 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 requirements is effective on the date on which these emission limits, 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: SEMI-ANNUALLY Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 53: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.2 (a) (1)

Item 53.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00001 Emission Point: 00001

Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATESPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 47 DRAFT Item 53.2: Compliance Certification shall include the following monitoring:

Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: Particulate emission limit for singular boilers or multiple boilers ducted through a common stack, which fire liquid fuels, and that have a heat capacity exceeding 250 mmBtu/hr.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.10 pounds per million Btus Reference Test Method: Method 5 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 54: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.3 (a)

Item 54.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: 1-00001 Emission Point: 00001

Emission Unit: 1-00002 Emission Point: 00002

Emission Unit: 1-00004 Emission Point: 00004

Item 54.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: No owner or operator of a combustion installation shall emit greater than 20 percent opacity except for one six minute period per hour, not to exceed 27 percent, based upon the six minute average utilizing a continuous opacity monitor (COM).

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Monitoring Frequency: CONTINUOUS Averaging Method: 6 MINUTE AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 48 DRAFT Condition 55: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.4 (b)

Item 55.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00001 Emission Point: 00001

Item 55.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner or operator of a stationary combustion installation which utilizes a continuous opacity monitoring system (COMS) shall include the following in their quarterly excess emission reports:

1) Magnitude, date, and time of each exceedence;

2) For each period of excess emissions, specific identification of the cause and corrective action taken;

3) Date, time, and duration of each period of COMS downtime, and the corrective action for each period of downtime;

4) Total time the COMS is required to record data during the reporting period;

5) The total number of exceedences and the duration of exceedences expressed as a percentage of the total time in which the COMS are required to record data; and

6) Such other requirements as the Department may deem necessary in order to enforce Article 19 of the Environmental Conservation Law (ECL).

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

Condition 56: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 56.1:Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 49 DRAFT The Compliance Certification activity will be performed for:

Emission Unit: 1-00002

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

Item 56.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Effective January 1, 2014

NOx emissions limited to 0.15 lbs/Million BTU 30 day average during the non-ozone season

Manufacturer Name/Model Number: NOx Analyzer Upper Permit Limit: 0.15 pounds per million Btus Reference Test Method: EPA Approved Monitoring Frequency: CONTINUOUS Averaging Method: 30 DAY ROLLING AVERAGE, ROLLED DAILY Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 57: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 57.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00002

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

Item 57.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Effective January 1, 2014

NOx emissions limited to 0.15 lbs/Million BTU 24 hour average during ozone season

Manufacturer Name/Model Number: NOx Analyzer Upper Permit Limit: 0.15 pounds per million BtusPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 50 DRAFT Reference Test Method: EPA Approved Monitoring Frequency: CONTINUOUS Averaging Method: 24-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).

Condition 58: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.2 (a) (1)

Item 58.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00002 Emission Point: 00002

Regulated Contaminant(s): CAS No: 0NY075-00-0 PARTICULATES

Item 58.2: Compliance Certification shall include the following monitoring:

Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: Particulate emission limit for singular boilers or multiple boilers ducted through a common stack, which fire liquid fuels, and that have a heat capacity exceeding 250 mmBtu/hr.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.10 pounds per million Btus Reference Test Method: Method 5 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 1-HOUR AVERAGE Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 59: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 227-1.4 (b)

Item 59.1: The Compliance Certification activity will be performed for:

Emission Unit: 1-00002 Emission Point: 00002

Item 59.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURESPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 51 DRAFT Monitoring Description: The owner or operator of a stationary combustion installation which utilizes a continuous opacity monitoring system (COMS) shall include the following in their quarterly excess emission reports:

1) Magnitude, date, and time of each exceedence;

2) For each period of excess emissions, specific identification of the cause and corrective action taken;

3) Date, time, and duration of each period of COMS downtime, and the corrective action for each period of downtime;

4) Total time the COMS is required to record data during the reporting period;

5) The total number of exceedences and the duration of exceedences expressed as a percentage of the total time in which the COMS are required to record data; and

6) Such other requirements as the Department may deem necessary in order to enforce Article 19 of the Environmental Conservation Law (ECL).

Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 3 calendar month(s).Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 52 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 60: Contaminant List Effective for entire length of Permit

Applicable State Requirement:ECL 19-0301

Item 60.1: 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: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 53 DRAFT CAS No: 0NY075-00-0 Name: PARTICULATES

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

Condition 61: Unavoidable noncompliance and violations Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 201-1.4

Item 61.1: At the discretion of the commissioner a violation of any applicable emission standard for necessary scheduled equipment maintenance, start-up/shutdown conditions and malfunctions or upsets may be excused if such violations are unavoidable. The following actions and recordkeeping and reporting requirements must be adhered to in such circumstances.

(a) The facility owner and/or operator shall compile and maintain records of all equipment maintenance or start-up/shutdown activities when they can be expected to result in an exceedance of any applicable emission standard, and shall submit a report of such activities to the commissioner's representative when requested to do so in writing or when so required by a condition of a permit issued for the corresponding air contamination source except where conditions elsewhere in this permit which contain more stringent reporting and notification provisions for an applicable requirement, in which case they supercede those stated here. Such reports shall describe why the violation was unavoidable and shall include the time, frequency and duration of the maintenance and/or start-up/shutdown activities and the identification of air contaminants, and the estimated emission rates. If a facility owner and/or operator is subject to continuous stack monitoring and quarterly reporting requirements, he need not submit reports for equipment maintenance or start-up/shutdown for the facility to the commissioner's representative.

(b) In the event that emissions of air contaminants in excess of any emission standard in 6 NYCRR Chapter III Subchapter A occur due to a malfunction, the facility owner and/or operator shall report such malfunction by telephone to the commissioner's representative as soon as possible during normal working hours, but in any event not later than two working days after becoming aware that the malfunction occurred. Within 30 days thereafter, when requested in writing by the commissioner's representative, the facility owner and/or operator shall submit a written report to the commissioner's representative describing the malfunction, the corrective action taken, identification of air contaminants, and an estimate of the emission rates. These reporting requirements are superceded by conditions elsewhere in this permit which contain reporting and notification provisions for applicable requirements more stringent than those above.

(c) The Department may also require the owner and/or operator to include in reports described under (a) and (b) above an estimate of the maximum ground level concentration of each air contaminant emitted and the effect of such emissions depending on the deviation of the malfunction and the air contaminants emitted.

(d) In the event of maintenance, start-up/shutdown or malfunction conditions which result in emissions exceeding any applicable emission standard, the facility owner and/or operator shall take appropriate action to prevent emissions which will result in contravention of any applicable ambient air quality standard. Reasonably available control technology, asPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 54 DRAFT determined by the commissioner, shall be applied during any maintenance, start-up/shutdown or malfunction condition subject to this paragraph.

(e) In order to have a violation of a federal regulation (such as a new source performance standard or national emissions standard for hazardous air pollutants) excused, the specific federal regulation must provide for an affirmative defense during start-up, shutdowns, malfunctions or upsets.

Condition 62: Visible Emissions Limited Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 211.2

Item 62.1: Except as permitted by a specific part of this Subchapter and for open fires for which a restricted burning permit has been issued, no person shall cause or allow any air contamination source to emit any material having an opacity equal to or greater than 20 percent (six minute average) except for one continuous six-minute period per hour of not more than 57 percent opacity.

Condition 63: Compliance Demonstration Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 227-2.5

Item 63.1: The Compliance Demonstration activity will be performed for the Facility.

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

Item 63.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Facility will comply with the NOx RACT Limit through a system wide average. The following emission units are included in the averaging plan: Bowline 1 and 2. During the summer period, from May 1 through September 30, the system wide average emission limit will be calculated on a 24 hour weighted average of all generating units. System wide average emission limit during the winter period October 1 through April 30 will be calculated on the basis of a weighted 30 day rolling average of the daily emissions of all units.

The system NOx emission limit will depend upon the specified regulatory emission limit and the relative contribution to the total system heat input of each equipment type.

Reference Test Method: CEMPermit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 55 DRAFT 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).Permit ID: 3-3922-00003/00008 Facility DEC ID: 3392200003

Air Pollution Control Permit Conditions Renewal 2 Page 56 DRAFT