Facility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 1 PERMIT Under the Environmental Conservation Law (ECL)

IDENTIFICATION INFORMATION

Permit Type: Air Title V Facility Permit ID: 2-6202-00032/00013 Mod 0 Effective Date: 05/16/2008 Expiration Date: 05/15/2013

Mod 1 Effective Date: 05/16/2008 Expiration Date: No expiration date.

Mod 2 Effective Date: 10/14/2011 Expiration Date: 05/15/2013

Mod 3 Effective Date: 03/20/2012 Expiration Date: 05/15/2013

Permit Issued To:CONSOLIDATED EDISON COMPANY OF NEW YORK INC 4 IRVING PL NEW YORK, NY 10003-3502

Contact: FEMI OGUNSOLA CONSOLIDATED EDISON CO OF NY INC 4 IRVING PL - 15FL NE NEW YORK, NY 10003-3502 (212) 460-1223

Facility: CON ED-59TH ST STATION 850 12TH AVE NEW YORK, NY 10019

Contact: FEMI OGUNSOLA CONSOLIDATED EDISON CO OF NY INC 4 IRVING PL - 15FL NE NEW YORK, NY 10003-3502 (212) 460-1223

Description: 

### Con Edison 59th Street Station operates two (2) very large boilers(114,& 115), each rated at 805 MMBtu/hr boilers, three (3) large boilers, each rated at 180 MMBtu/hr boilers, and one (1) 220 MMBtu/hr combustion turbine. The boilers burn residual oil as well as natural gas. The combustion turbine burns distillate oil and natural gas. All boilers are used to generate steam only.

This modification is to include emission limits for Oxideds of Nitrogen(NOx), Sulfur Dioxide(SO2) and Particulate Matter (PM) established under 6 NYCRR Paer 249, based on New York's Best Available Retrofit Technology(BART) Rule. The boilers 114 and 115 are BART- eligible sources, and the emission limits are based on the Con Edison's BART analysis.Facility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 2 By acceptance of this permit, the permittee agrees that the permit is contingent upon strict compliance with the ECL, all applicable regulations, the General Conditions specified and any Special Conditions included as part of this permit.

Permit Administrator: JOHN F CRYAN NYSDEC 47-40 21ST ST LONG ISL AND CITY, NY 11101-5407

Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 3 Notification of Other State Permittee Obligations

Item A: Permittee Accepts Legal Responsibility and Agrees to Indemnification

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

Item B: Permittee's Contractors to Comply with Permit

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

Item C: Permittee Responsible for Obtaining Other Required Permits

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

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

This permit does not convey to the permittee any right to trespass upon the lands or interfere with the riparian rights of others in order to perform the permitted work nor does it authorize the impairment of any rights, title, or interest in real or personal property held or vested in a person not a party to the permit.Facility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 4 LIST OF CONDITIONS

DEC GENERAL CONDITIONS General Provisions Facility Inspection by the Department Relationship of this Permit to Other Department Orders and Determinations Applications for permit renewals, modifications and transfers Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Facility Level Submission of application for permit modification or renewal - REGION 2 HEADQUARTERSFacility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 5 DEC GENERAL CONDITIONS **** General Provisions   For the purpose of your Title V permit, the following section contains state-only enforceable terms and conditions. GENERAL CONDITIONS - Apply to ALL Authorized Permits.

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

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

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

Item 1.3: A copy of this permit, including all referenced maps, drawings and special conditions, must be available for inspection by the Department at all times at the project site or facility. Failure to produce a copy of the permit upon request by a Department representative is a violation of this permit.

Condition 2: Relationship of this Permit to Other Department Orders and Determinations Applicable State Requirement: ECL 3-0301 (2) (m)

Item 2.1: Unless expressly provided for by the Department, issuance of this permit does not modify, supersede or rescind any order or determination previously issued by the Department or any of the terms, conditions or requirements contained in such order or determination.

Condition 3: Applications for permit renewals, modifications and transfers Applicable State Requirement: 6 NYCRR 621.11

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

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

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should beFacility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 6 submitted prior to actual transfer of ownership.

Condition 2-1: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 2-1.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:

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

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

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

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

Condition 2-2: Permit modifications, suspensions or revocations by the Department Applicable State Requirement: 6 NYCRR 621.13

Item 2-2.1: 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;Facility DEC ID: 2620200032

DEC Permit Conditions Renewal 1/Mod 3/FINAL Page 7 e) noncompliance with previously issued permit conditions, orders of the commissioner, any provisions of the Environmental Conservation Law or regulations of the Department related to the permitted activity.

** ** Facility Level  

Condition 5: Submission of application for permit modification or renewal - REGION 2 HEADQUARTERS Applicable State Requirement: 6 NYCRR 621.6 (a)

Item 5.1: Submission of applications for permit modification or renewal are to be submitted to: NYSDEC Regional Permit Administrator Region 2 Headquarters Division of Environmental Permits 1 Hunters Point Plaza, 4740 21st Street Long Island City, NY 11101-5407 (718) 482-4997Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 1 FINAL Permit Under the Environmental Conservation Law (ECL)

ARTICLE 19: AIR POLLUTION CONTROL - TITLE V PERMIT

IDENTIFICATION INFORMATION

Permit Issued To:CONSOLIDATED EDISON COMPANY OF NEW YORK INC 4 IRVING PL NEW YORK, NY 10003-3502

Facility: CON ED-59TH ST STATION 850 12TH AVE NEW YORK, NY 10019

Authorized Activity By Standard Industrial Classification Code: 4911 - ELECTRIC SERVICES 4961 - STEAM SUPPLY

Mod 0 Permit Effective Date: 05/16/2008 Permit Expiration Date: 05/15/2013

Mod 2 Permit Effective Date: 10/14/2011 Permit Expiration Date: 05/15/2013

Mod 3 Permit Effective Date: 03/20/2012 Permit Expiration Date: 05/15/2013Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 2 FINAL LIST OF CONDITIONS

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1 6 NYCRR 200.6: Acceptable Ambient Air Quality 2-1 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 Part 215: Open Fires Prohibited at Industrial and Commercial Sites 2-2 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 2-3 6 NYCRR 202-1.1: Required Emissions Tests 21 6 NYCRR 211.3: Compliance Certification 22 40 CFR Part 68: Accidental release provisions. 23 40CFR 82, Subpart F: Recycling and Emissions Reduction 24 6 NYCRR 200.3: False statement 25 6 NYCRR Subpart 201-3: Statement of Applicability to Regulation 26 6 NYCRR Subpart 201-6: Emission Unit Definition 27 6 NYCRR 201-6.5 (g): Non Applicable requirements 34 6 NYCRR Part 207: Submittal of Episode Action Plans 2-4 6 NYCRR 211.1: Air pollution prohibited 35 6 NYCRR 225-1.4: Temporary variances. 36 6 NYCRR 225-1.8: Compliance Certification 37 6 NYCRR 225.1 (a) (3): Compliance Certification 38 6 NYCRR 225.1 (a) (3): Compliance Certification 39 6 NYCRR 227-1.3: Compliance Certification 40 6 NYCRR 227-2.5 (b): Compliance Certification 41 6 NYCRR 227-2.6 (c) (2): Compliance Certification 42 6 NYCRR 227-2.6 (c) (2): Compliance Certification 43 6 NYCRR 243-1.6 (a): Permit Requirements 44 6 NYCRR 243-1.6 (b): Monitoring requirements 45 6 NYCRR 243-1.6 (c): NOx Ozone Season Emission Requirements 46 6 NYCRR 243-1.6 (d): Excess emission requirements 47 6 NYCRR 243-1.6 (e): Recordkeeping and reporting requirementsPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 3 FINAL 48 6 NYCRR 243-2.1: Authorization and responsibilities of CAIR designated representative 49 6 NYCRR 243-2.4: Certificate of representation 51 6 NYCRR 243-8.1: General requirements 52 6 NYCRR 243-8.1: Prohibitions 50 6 NYCRR 243-8.3: Out of control periods 53 6 NYCRR 243-8.5 (d): Quarterly reports 54 6 NYCRR 243-8.5 (e): Compliance certification 3-1 6 NYCRR 249.3 (d): Compliance Certification Emission Unit Level 55 6 NYCRR Subpart 201-6: Emission Point Definition By Emission Unit 56 6 NYCRR Subpart 201-6: Process Definition By Emission Unit

EU=5-90005 57 6 NYCRR 227-1.3: Compliance Certification

EU=5-90005,EP=GT001

58 6 NYCRR 227.2 (b) (1): Compliance Certification

EU=5-90005,EP=GT001,Proc=GTN,ES=GT001 2-5 6 NYCRR 227-1.3 (a): Compliance Certification

EU=5-90020 61 6 NYCRR 225-1.7 (c): Compliance Certification 62 6 NYCRR 225-1.7 (e): Sulfur in fuel exception reporting 63 6 NYCRR 227-1.3: Compliance Certification 64 6 NYCRR 227-2.6 (a) (1): Testing, monitoring, and reporting requirements for very large boilers. 3-2 6 NYCRR 249.3 (a): Compliance Certification 3-3 6 NYCRR 249.3 (a): Compliance Certification 3-4 6 NYCRR 249.3 (a): Compliance Certification 3-5 6 NYCRR 249.3 (f): Compliance Certification

EU=5-90020,EP=00001

65 6 NYCRR 227.2 (b) (1): Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 66 ECL 19-0301: Contaminant List 2-6 6 NYCRR 201-1.4: Unavoidable noncompliance and violations 2-7 6 NYCRR 211.2: Visible Emissions Limited Emission Unit Level

EU=5-90005 2-8 6 NYCRR 201-6.6 (a): Compliance DemonstrationPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 4 FINAL 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 5 FINAL 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 6 FINAL 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 7 FINAL 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 8 FINAL (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 between the dates of 05/16/2008 and 05/15/2013

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 2-1: Fees Effective between the dates of 10/14/2011 and 05/15/2013

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

Item 2-1.1: The owner and/or operator of a stationary source shall pay fees to the Department consistent with the fee schedule authorized by ECL 72-0303.

Condition 3: Recordkeeping and reporting of compliance monitoring Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 3.1:Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 9 FINAL 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 between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 10 FINAL 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 or a toxic 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 any of the above conditions 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) through (4) 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 bePermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 11 FINAL used. A 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 paragraph (1) through (4) of this section must also be identified in the 6 month monitoring report required above.

If the permittee seeks to have a violation excused as provided in 201-1.4, the permittee shall report such violations as required under 201-1.4(b). However, in no case may reports of any deviation be on a less frequent basis than those described in paragraphs (1) though (4) above. 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.

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 Compliance Monitoring and Enforcement (BCME) 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. The initial report is due 7/30/2008. Subsequent reports are due every 6 calendar month(s).

Condition 6: Compliance CertificationPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 12 FINAL Effective between the dates of 05/16/2008 and 05/15/2013

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: Compliance certifications shall contain the following information: - 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.

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.

All compliance certifications 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 Compliance Monitoring and Enforcement (BCME) 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 BroadwayPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 13 FINAL New York, NY 10007-1866

The address for the RAPCE is as follows:

Hunters Point Plaza 47-40 21st Street Long Island City, NY 11101-5407

The address for the BCME is as follows:

NYSDEC Bureau of Compliance Monitoring and Enforcement 625 Broadway Albany, NY 12233-3258

Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2009. Subsequent reports are due on the same day each year

Condition 7: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

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. Statements are to be mailed to: New York State Department of Environmental Conservation, Division of Air Resources, Bureau of Air Quality Planning, 625 Broadway, Albany NY 12233-3251

Monitoring Frequency: ANNUALLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due by April 15th for previous calendar year

Condition 8: Recordkeeping requirements Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 202-2.5

Item 8.1: (a) The following records shall be maintained for at least five years:Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 14 FINAL (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 Prohibited at Industrial and Commercial Sites Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR Part 215

Item 9.1: No person shall burn, cause, suffer, allow or permit the burning in an open fire of garbage, refuse, rubbish for salvage, or rubbish generated by industrial or commercial activities.

Condition 2-2: Open Fires - Prohibitions Effective between the dates of 10/14/2011 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 215.2

Item 2-2.1: Except as allowed by Title 6 NYCRR Section 215.3, no person shall burn, cause, suffer, allow or permit the burning of any materials in an open fire.

Item 2-2.2 Per Section 215.3, burning in an open fire, provided it is not contrary to other law or regulation, will be allowed as follows: (a) On-site burning in any town with a total population less than 20,000 of downed limbs and branches (including branches with attached leaves or needles) less than six inches in diameter and eight feet in length between May 15th and the following March 15th. For the purposes of this subdivision, the total population of a town shall include the population of any village or portion thereof located within the town. However, this subdivision shall not be construed to allow burning within any village. (b) Barbecue grills, maple sugar arches and similar outdoor cooking devices when actually 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 byPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 15 FINAL police or other public safety organization. (i) Prescribed burns performed according to Part 194 of this Title. (j) Fire training, including firefighting, fire rescue, and fire/arson investigation training, performed under applicable rules and guidelines of the New York State Department of State's Office of Fire Prevention and Control. For fire training performed on acquired structures, the structures must be emptied and stripped of any material that is toxic, hazardous or likely to emit toxic smoke (such as asbestos, asphalt shingles and vinyl siding or other vinyl products) prior to burning and must be at least 300 feet from other occupied structures. No more than one structure per lot or within a 300 foot radius (whichever is bigger) may be burned in a training exercise. (k) Individual open fires as approved by the Director of the Division of Air Resources as may be required in response to an outbreak of a plant or animal disease upon request by the commissioner of the Department of Agriculture and Markets, or for the destruction of invasive plant and insect species. (l) Individual open fires that are otherwise authorized under the environmental conservation law, or by rule or regulation of the Department.

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

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

Condition 10: Maintenance of Equipment Effective between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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 airPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 16 FINAL Effective between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 17 FINAL Condition 16: General Condition - Right to Inspect Effective between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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 between the dates of 05/16/2008 and 05/15/2013

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 permitPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 18 FINAL (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 below 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 2-3: Required Emissions Tests Effective between the dates of 10/14/2011 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 2-3.1: For the purpose of ascertaining compliance or non-compliance with any air pollution control code, rule or regulation, the commissioner may require the person who owns such air contamination source to submit an acceptable report of measured emissions within a stated time.

Condition 21: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 211.3

Item 21.1: The Compliance Certification activity will be performed for the Facility.

Item 21.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: Except as permitted by a specific part of Title 6 of the NYCRR, 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.

Operators of air contamination sources that are not exempt from permitting and where a continuous opacity monitor is not utilized for measuring smoke emissions, shall be required to perform the following:

1) Observe the stack(s) or vent(s) once per day for visible emissions. This observation(s) must be conductedPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 19 FINAL during daylight hours except during adverse weather conditions (fog, rain, or snow).

2) The results of each observation must be recorded in a bound logbook or other format acceptable to the Department. The following data must be recorded for each stack:

- weather condition - was a plume observed?

This logbook must be retained at the facility for five (5) years after the date of the last entry.

3) If the operator observes any visible emissions (other than steam - see below) two consecutive days, then a Method 9 analysis (based upon a 6-minute mean) of the affected emission point(s) must be conducted within two (2) business days of such occurrence. The results of the Method 9 analysis must be recorded in the logbook. The operator must contact the Regional Air Pollution Control Engineer within one (1) business day of performing the Method 9 analysis if the opacity standard is contravened. Upon notification, any corrective actions or future compliance schedules shall be presented to the Department for acceptance.

**  NOTE ** Steam plumes generally form after leaving the top of the stack (this is known as a detached plume). The distance between the stack and the beginning of the detached plume may vary, however, there is (normally) a distinctive distance between the plume and stack. Steam plumes are white in color and have a billowy consistency. Steam plumes dissipate within a short distance of the stack (the colder the air the longer the steam plume will last) and leave no dispersion trail downwind of the stack.

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 6 MINUTE AVERAGE Reporting Requirements: AS REQUIRED - SEE MONITORING DESCRIPTION

Condition 22: Accidental release provisions. Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:40 CFR Part 68

Item 22.1: If a chemical is listed in Tables 1,2,3 or 4 of 40 CFR §68.130 is present in a process in quan titiesPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 20 FINAL 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 23: Recycling and Emissions Reduction Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:40CFR 82, Subpart F

Item 23.1: 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 24: False statement Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 200.3

Item 24.1: No person shall make a false statement in connection with applications, plans, specifications and/or reports submitted pursuant to this Subchapter.

Condition 25: Statement of Applicability to Regulation Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federa l Requirement:6 NYCRR Subpart 201-3

Item 25.1: The requirements of 6 NYCRR Subpart 201-3 apply to all exempt and trivial activities at this facility.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 21 FINAL Condition 26: Emission Unit Definition Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 26.1(From Mod 3): The facility is authorized to perform regulated processes under this permit for: Emission Unit: 5-90020 Emission Unit Description: Very large boilers 114 and 115 and large boilers 116, 117 and 118. All boilers have the capability to burn residual oil and natural gas. All boilers are used to generate steam only.

Building(s): BOILERHS

Item 26.2(From Mod 2): The facility is authorized to perform regulated processes under this permit for: Emission Unit: 5-90005 Emission Unit Description: One (1) simple cycle combustion turbine utilized to generate electricity. The turbine burns distillate oil and natural gas.

Building(s): BOILERHS

Condition 27: Non Applicable requirements Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 27.1: This section contains a summary of those requirements that have been specifically identified as being not applicable to this facility and/or emission units, emission points, processes and/or emission sources within this facility. The summary also includes a justification for classifying any such requirements as non-applicable.

Condition 34: Submittal of Episode Action Plans Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR Part 207

Item 34.1: An episode action plan must be submitted for approval by the Department in accordance with the requirements of 6NYCRR Part 207. The plan shall contain detailed steps which will be taken by the facility to reduce air contaminant emissions during each stage of an air pollution episode. Once approved, the facility shall take whatever actions are prescribed by the episode action plan when an air pollution episode is in effect.

Condition 2-4: Air pollution prohibited Effective between the dates of 10/14/2011 and 05/15/2013Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 22 FINAL Applicable Federal Requirement:6 NYCRR 211.1

Item 2-4.1: No person shall cause or allow emissions of air contaminants to the outdoor atmosphere of such quantity, characteristic or duration which are injurious to human, plant or animal life or to property, or which unreasonably interfere with the comfortable enjoyment of life or property. Notwithstanding the existence of specific air quality standards or emission limits, this prohibition applies, but is not limited to, any particulate, fume, gas, mist, odor, smoke, vapor, pollen, toxic or deleterious emission, either alone or in combination with others.

Condition 35: Temporary variances. Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 225-1.4

Item 35.1: Upon application by an air contamination source owner or a fuel supplier the commissioner may issue an order granting a temporary variance from the provisions of 6 NYCRR Part 225-1 where it can be shown, to the commissioner's satisfaction, that there is an insufficient supply of conforming fuel, either:

(1) of the proper type required for use in a particular air contamination source; or (2) generally throughout an area of the State.

Condition 36: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 225-1.8

Item 36.1: The Compliance Certification activity will be performed for the Facility.

Item 36.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: An owner or operator of a facility which purchases and fires coal and/or fuel oil shall compile and retain records of the following information: a. fuel analyses and data on the quantities of all residual and distillate oil and coal received, burned or sold; b. the names of all purchasers of all residual and distillate oil and coal sold; c. any results of stack sampling, stack monitoring and other procedures used to ensure compliance with the provisions of 6 NYCRR Part 225-1. Fuel analyses must contain, as a minimum, data on the sulfur content, specific gravity and heating value of anyPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 23 FINAL residual oil, distillate oil or coal received, burned or sold. Ash content shall also be included in the fuel analyses for any residual oil or coal received, burned or sold.

These records shall be retained for a minimum period of three years. If the facility is subject to Title V requirements the minimum record retention period shall be five years. The records shall be made available for inspection by department staff during normal business hours. In addition, copies of such records shall be furnished to department staff upon request. All required sampling, compositing and analysis of fuel samples must be done in accordance with methods acceptable to the department.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2008. Subsequent reports are due every 6 calendar month(s).

Condition 37: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 225.1 (a) (3)

Item 37.1: The Compliance Certification activity will be performed for the Facility.

Item 37.2: Compliance Certification shall include the following monitoring:

Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: No person shall sell, offer for sale, purchase or use any distillate oil which has sulfur content greater than 0.20 percent by weight. 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 MATERIAL Process Material: DISTILLATES - NUMBER 1 AND NUMBER 2 OIL Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.20 percent by weight Monitoring Frequency: PER DELIVERY Reporting Requirements: SEMI-ANNUALLY (ANNIVERSARY) Initial Report Due: 12/15/2008 for the period 05/16/2008 through 11/15/2008

Condition 38: Compliance CertificationPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 24 FINAL Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 225.1 (a) (3)

Item 38.1: The Compliance Certification activity will be performed for the Facility.

Item 38.2: Compliance Certification shall include the following monitoring:

Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: No person shall sell, offer for sale, purchase or use any residual oil which has sulfur content greater than 0.30 percent by weight. 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 MATERIAL Process Material: NUMBER 6 OIL Parameter Monitored: SULFUR CONTENT Upper Permit Limit: 0.30 percent by weight Monitoring Frequency: PER DELIVERY Reporting Requirements: SEMI-ANNUALLY (ANNIVERSARY) Initial Report Due: 12/15/2008 for the period 05/16/2008 through 11/15/2008

Condition 39: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-1.3

Item 39.1: The Compliance Certification activity will be performed for the Facility.

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

Item 39.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: In response to New York State Department of Environmental Conservation opacity regulations, Con Edison installed and certified Lear Siegler RM41 transmissometers on applicable Fossil Power stacks during the early 1980s. In 1994 and 1995, as part of Con Edison¿s Continuous Emissions Monitoring System (CEMS) program, existing equipment at all facilities was replaced with new state-of-the-art Land Model 4500 units. New recorders were installed and digital opacity indicators were placedPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 25 FINAL in control rooms so that Station operators would have real-time opacity readings. Con-Edison¿s opacity monitors shall be operated and maintained in accordance with the requirements of 40 CFR Part 75.

1. Opacity Incident Reporting:

Con Edison shall prepare opacity incident reports consistent with the requirements of this paragraph. The term "opacity incident" as used in this condition means smoke emissions which exhibit greater than 20% opacity (6-minute average). Opacity incident report shall be maintained by Con Edison for a period of three years and shall be made available for inspection by the Department on demand. To provide a consistent and permanent record of all reportable opacity events, incident reporting was initiated in 1994. The reports consist of documenting incident events by way of Incident Reports in Con Edison¿s Central information database system. Incident Reports identify personnel on duty, a brief summary of the incident and as necessary a sequence of events, a preliminary cause analysis and associated corrective action requirements. All opacity Incident Reports are available electronically to cognizant Con Edison departments and personnel for their information, review and use. Incident Reports form the basis for more detailed root cause analysis, corrective actions, design modifications and project/program development and implementation.

2. Opacity Reporting Compliance Audits:

Con Edison shall conduct monthly opacity reporting compliance audits consistent with the requirements of this paragraph. Monthly opacity reporting compliance audits have been performed since April, 1994 and shall continue to be performed to ensure compliance with applicable regulatory reporting requirements. Audits include a detailed review of all opacity charts or recording device data for the prior month, confirmation that all indicated events were properly reported and documented, charts properly marked, survey sheets completed and all documentation retained. Comprehensive audit reports shall continue to be prepared to identify all relevant observations. Items tabulated include missing chart hours and survey sheets, events greater than 20% opacity, events greater than 40% opacity, total incidents, incidents reported and events covered by Incident Reports.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 26 FINAL 3. Awareness, Communications and Training:

Con Edison shall comply with the opacity awareness, communications and training provisions of this paragraph. Several significant initiatives have been undertaken to ensure and reinforce personnel understanding of the regulatory and operational requirements associated with this opacity. Awareness has been heightened by consistently and effectively communicating mandates throughout all levels of Con Edison¿s Steam Operations organization. Opacity audit results, significant or unusual exceedances , trends, goals, new developments and/or opacity reduction initiatives shall be included as agenda items, when appropriate, at a variety of meetings, including the monthly meeting of the Steam Operations Vice President with the Plant Managers, the Steam Operations Program Managers¿ Meeting, and/or the Operations and Maintenance Managers Meeting in order to promote continuing improvement in opacity awareness and compliance. Some of the opacity exceedances will be included in the review and discussion agenda of each monthly Incident Report Review Meeting, which is attended by key Steam Operations managers from each station, as well as EH&S and Central Engineering personnel.

At the local generating station level, opacity understanding and awareness shall be communicated on an ongoing basis from station management to supervisory and operating and maintenance personnel. Such communications shall be reinforced by operator interaction with personnel assigned as Opacity Auditors. Formal operator training is required of all personnel in order to receive their Air Pollution Control Certificates. A formal Air Pollution Control Refresher Course has been developed by the Company and shall be given to all control room operators by December 1998. It shall provide training in opacity regulatory requirements, fundamentals of combustion, and the balance between NOx control and opacity and continuous emissions monitoring interface.

4. Preventive Maintenance:

Con Edison shall conduct, on an ongoing basis, a preventive maintenance program as described in this paragraph. Review of opacity-related Incident Reports by Con Edison has identified equipment deficiencies, both in design and maintenance. The consistent and repetitive nature of maintenance-related deficiencies has indicated the need for a comprehensive boiler component opacity reduction preventive maintenance program. The program has been fully operational since mid-1996. It consists ofPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 27 FINAL three phases defined as follows:

Phase 1 - identify essential program elements including repetitive deficiencies; Phase 2 - develop procedures for each identified element; Phase 3 - consists of ongoing implementation of preventive maintenance.

The primary elements of Con Edison¿s ongoing preventive maintenance program for opacity reductions consist of regular inspection, calibration, and/or servicing of the following equipment in each of the generating stations: ¿ CEMS stack opacity monitoring equipment; ¿ Boiler control and instrumentation; ¿ Fuel oil and gas meters; ¿ Fuel oil pumps and strainers; ¿ Boiler fireside tubes (to minimize ash build-up); ¿ Air preheaters (to minimize ash build-up); ¿ Control-air air compressors; ¿ Fuel oil regulators; ¿ Atomizing steam regulators; ¿ Fan dampers and actuators; and ¿ Oil guns and tips.

This program may be revised by adding appropriate new maintenance requirements and deleting ineffective or obsolete maintenance activities based on operating experience or changes in equipment operation. The Department shall be notified of all significant additions and deletions to the preventive maintenance program via Con Edison¿s quarterly report to the Department.

5. Root Cause Analysis and Corrective Actions:

Con Edison shall conduct root cause analyses as described in this paragraph and shall take all corrective actions that are deemed necessary to maintain full compliance with the State¿s opacity requirements. A comprehensive Root Cause Analysis program, including deficiency categorization and correction of categorized deficiencies was implemented in April 1995. Incident categories include oil, air, atomizing steam, ignition, burner and combustion control system deficiencies. Analysis, categorization and corrective action development shall be performed monthly by the facility¿s Boiler System Engineer and other station personnel. Corrections due to equipment failure, malfunction and marginal design shall be accomplished by corrective maintenance and simple designPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 28 FINAL basis enhancement activities. Correction of operation deviations include focused training, minimized soot blowing and increased boiler fireside washes. Significant design basis deficiencies shall be corrected by the development and implementation of design basis enhancement projects, including, but not limited to, fuel switching and ignition and control system retrofits.

6. Quarterly Reports:

Con Edison shall submit to the Department quarterly reports each May 15, August 15, November 15 and February 15, which describe activities and progress that Con Edison has made during the preceding quarter in carrying out the requirements of paragraphs 1 through 5 above in this condition. Penalties will not be assessed for excess opacity emission events attributable soley to equipment malfunctions or boiler start-ups or shut-downs, (as those terms are defined in 40 CFR § 60.2); provided that, Con Edison identifies those events in its quarterly excess emission reports, certifies that the events were not preventable and the Department does not dispute Con Edison¿s claim that such events were not preventable. When requested by the Department, Con Edison shall make available to the Department any incident reports and root cause analysis that it prepared for such events. Con Edison shall expressly identify in its quarterly excess emission reports instances of excess opacity attributable to soot blowing, operator error, or careless operation of properly functioning equipment.

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

Condition 40: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 40.1: The Compliance Certification activity will be performed for the Facility.

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

Item 40.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURESPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 29 FINAL Monitoring Description: Con Edison's system-wide averaging of NOx emissions from its facilities shall be performed in accordance with the most current version of the NOx RACT Compliance Plan and the NOx RACT Operating Plan, approved by the Department.

The most current version of the NOx RACT Compliance and Operating Plans are attached to this permit and constitute an enforceable part of the permit.

Monitoring Frequency: CONTINUOUS Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2008. Subsequent reports are due every 3 calendar month(s).

Condition 41: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-2.6 (c) (2)

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

Item 41.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner or operator shall submit a compliance test protocol to the Department for approval at least 90 days prior to emission testing. The conditions of the testing and the locations of the sampling devices must be acceptable to the the Department.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 42: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-2.6 (c) (2)

Item 42.1: The Compliance Certification activity will be performed for the Facility.

Item 42.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURESPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 30 FINAL Monitoring Description: Owners or operators of: 1) simple cycle combustion turbines shall utilize stack test Method 20 from 40 CFR Part 60, Appendix A; 2) combined cycle combustion turbine with a heat input rating of less than or equal to 250 mmBtu/hr shall utilize stack test Method, 7, 7E, 19, or 20 from 40 CFR Part 6, Appendix A; or 3) another stack test Method approved by the Department.

Owners or operators of simple cycle combustion turbines or combined cycle combustion turbine with a heat input rate of 250 mmBtu/hr or less shall be required to perform either a stack test or other Department approved method, to determine compliance with their NOx limit, once per the term of their permit.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 43: Permit Requirements Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 43.1: 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 44: Monitoring requirements Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 44.1: 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 45: NOx Ozone Season Emission Requirements Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-1.6 (c)Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 31 FINAL Item 45.1: 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 46: Excess emission requirements Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 46.1: 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; andPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 32 FINAL (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 47: Recordkeeping and reporting requirements Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 47.1: 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 48: Authorization and responsibilities of CAIR designated representative Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-2.1

Item 48.1: Except as provided under section 243-2.2, each CAIR NOx Ozone Season source, including all CAIR NOx Ozone Season units at the source, shall have one and only one CAIR designated representative, with regard to all matters under the CAIR NOx Ozone Season Trading Program concerning the source or any CAIR NOx Ozone Season unit at the source.

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

Upon receipt by the Administrator of a complete certificate of representation under section 243-2.4, the CAIR designated representative of the source shall represent and, by his or herPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 33 FINAL 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 49: Certificate of representation Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-2.4

Item 49.1: 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 51: General requirements Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-8.1

Item 51.1: 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 orPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 34 FINAL operator of a unit that is not a CAIR NOx Ozone Season unit but that is monitored under 40 CFR 75.72(b)(2)(ii) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR NOx Ozone Season unit.

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

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

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

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

Condition 52: Prohibitions Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-8.1

Item 52.1: 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 discontinue use of the continuous emission monitoring system, any component thereof, or any other approved monitoring system under this Subpart, except under any one of the following circumstances: (i) during the period that the unit is covered by an exemption under section 243-1.5 that is in effect; (ii) the owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this Subpart and 40 CFR Part 75, by the department for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; orPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 35 FINAL (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 50: Out of control periods Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 243-8.3

Item 50.1: 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.

Condition 53: Quarterly reports Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 53.1: 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 54: Compliance certificationPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 36 FINAL Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 54.1: 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 3-1: Compliance Certification Effective between the dates of 03/20/2012 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 249.3 (d)

Item 3-1.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: 5-90020 Process: NG1

Emission Unit: 5-90020 Process: RO1

Item 3-1.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Control equipment or other emission reduction methods approved by the department as BART must be installed and operating no later than January 1, 2014.

Monitoring Frequency: SINGLE OCCURRENCE Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCEPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 37 FINAL   Emission Unit Level ** **

Condition 55: Emission Point Definition By Emission Unit Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 55.1(From Mod 2): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: 5-90005

Emission Point: GT001 Height (ft.): 119 Diameter (in.): 144 NYTMN (km.): 4513.957 NYTME (km.): 584.959 Building: BOILERHS

Item 55.2(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: 5-90020

Emission Point: 00001 Height (ft.): 507 Diameter (in.): 198 NYTMN (km.): 4513.94 NYTME (km.): 585.005 Building: BOILERHS

Condition 56: Process Definition By Emission Unit Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 56.1(From Mod 3): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 5-90020 Process: NG1 Source Classification Code: 1-02-006-01 Process Description: This process includes: Two (2) tangentially fired boilers (114 and 115) rated at 805 MMBtu/hr each and covers the combustion of natural gas in these boilers. NOx emissions are controlled with the use of off-stoichiometric firing.

Emission Source/Control: 00114 - Combustion Design Capacity: 805 million Btu per hour

Emission Source/Control: 00115 - Combustion Design Capacity: 805 million Btu per hour

Item 56.2(From Mod 3): This permit authorizes the following regulated processes for the cited Emission Unit:Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 38 FINAL Emission Unit: 5-90020 Process: RO1 Source Classification Code: 1-02-004-01 Process Description: This process includes: Two (2) tangentially fired boilers (114 and 115) rated at 805 MMBtu/hr each and covers the combustion of residual oil in these boilers. NOx emissions are controlled with the use of off-stoichiometric firing.

Emission Source/Control: 00114 - Combustion Design Capacity: 805 million Btu per hour

Emission Source/Control: 00115 - Combustion Design Capacity: 805 million Btu per hour

Item 56.3(From Mod 2): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 5-90005 Process: GTD Source Classification Code: 2-01-001-01 Process Description: This process includes: one (1) combustion turbine, rated at 220 MMBtu/hr. This process covers the combustion of distillate oil in this turbine.

Emission Source/Control: GT001 - Combustion Design Capacity: 220 million Btu per hour

Item 56.4(From Mod 2): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 5-90005 Process: GTN Source Classification Code: 2-01-002-01 Process Description: This process includes: one (1) combustion turbine, rated at 220 MMBtu/hr. This process covers the combustion of natural gas in this turbine.

Emission Source/Control: GT001 - Combustion Design Capacity: 220 million Btu per hour

Item 56.5(From Mod 2): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 5-90020 Process: NG2 Source Classification Code: 1-02-006-01 Process Description: This process includes: Three (3) normally fired boilers (116, 117 and 118) rated at 180 MMBtu/hr each and covers the combustion of natural gas in these boilers. NOx emissions are controlled with the use of Low Excess air.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 39 FINAL Emission Source/Control: 00116 - Combustion Design Capacity: 180 million Btu per hour

Emission Source/Control: 00117 - Combustion Design Capacity: 180 million Btu per hour

Emission Source/Control: 00118 - Combustion Design Capacity: 180 million Btu per hour

Item 56.6(From Mod 2): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: 5-90020 Process: RO2 Source Classification Code: 1-02-004-01 Process Description: This process includes: Three (3) normally fired boilers (116, 117 and 118) rated at 180 MMBtu/hr each and covers the combustion of residual oil in these boilers. NOx emissions are controlled with the use of Low Excess air.

Emission Source/Control: 00116 - Combustion Design Capacity: 180 million Btu per hour

Emission Source/Control: 00117 - Combustion Design Capacity: 180 million Btu per hour

Emission Source/Control: 00118 - Combustion Design Capacity: 180 million Btu per hour

Condition 57: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-1.3

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

Emission Unit: 5-90005

Item 57.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: For the oil-fired Combustion Turbine, stack opacity shall not exceed 20 percent (six minute average), except for one six-minute period per hour of not more than 27 percent opacity. Compliance with this standard shall be determined with EPA Reference Method 9. For the turbine, the following shall be performed:

1) Observe the stack for the turbine when operating on oilPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 40 FINAL once per day for visible emissions. This observation(s) must be conducted during daylight hours except during adverse weather conditions (fog, rain, or snow).

2) The results of each observation must be recorded in a bound logbook or other format acceptable to the Department. The following data must be recorded for the stack:

- weather condition - was a plume observed?

This logbook must be retained at the facility for five (5) years after the date of the last entry.

3) If the operator observes any visible emissions (other than steam - see below) two consecutive days firing oil, then a Method 9 analysis (based upon a 6-minute mean) of the affected emission point must be conducted within two (2) business days of such occurrence. The results of the Method 9 analysis must be recorded in the logbook. The operator must contact the Regional Air Pollution Control Engineer within one (1) business day of performing the Method 9 analysis if the opacity standard is contravened. Upon notification, any corrective actions or future compliance schedules shall be presented to the Department for acceptance.

** NOTE ** Steam plumes generally form after leaving the top of the stack (this is known as a detached plume). The distance between the stack and the beginning of the detached plume may vary, however, there is (normally) a distinctive distance between the plume and stack. Steam plumes are white in color and have a billowy consistency. Steam plumes dissipate within a short distance of the stack (the colder the air the longer the steam plume will last) and leave no dispersion trail downwind of the stack.

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

Condition 58: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227.2 (b) (1)

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

Emission Unit: 5-90005 Emission Point: GT001Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 41 FINAL 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 a stationary combustion installation firing oil. The owner or operator shall complete the following once per term of this permit:

1) submit, to the Department, an acceptable protocol for the testing of particulate emission limit cited in this condition,

2) perform a stack test, based upon the approved test protocol, to determine compliance with the particulate emission limit cited in this condition, and

3) all records shall be maintained at the facility for a minimum of five years.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.10 pounds per million Btus Reference Test Method: Method 5 Monitoring Frequency: ONCE DURING THE TERM OF THE PERMIT Averaging Method: AVERAGING METHOD AS PER REFERENCE TEST METHOD INDICATED Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2008. Subsequent reports are due every 6 calendar month(s).

Condition 2-5: Compliance Certification Effective between the dates of 10/14/2011 and 05/15/2013

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

Item 2-5.1: The Compliance Certification activity will be performed for:

Emission Unit: 5-90005 Emission Point: GT001 Process: GTN Emission Source: GT001

Item 2-5.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description:Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 42 FINAL No person shall operate a stationary combustion installation which exhibits greater than 20 percent opacity (six minute average), except for one-six-minute period per hour of not more than 27 percent opacity. The Department reserves the right to perform or require the performance of a Method 9 opacity evaluation at any time during facility operation.

The permittee will conduct observations of visible emissions from the emission unit, process, etc. to which this condition applies at the monitoring frequency stated below while the process is in operation. The permittee will investigate, in a timely manner, any instance where there is cause to believe that visible emissions have the potential to exceed the opacity standard.

The permittee shall investigate the cause, make any necessary corrections, and verify that the excess visible emissions problem has been corrected. If visible emissions with the potential to exceed the standard continue, the permittee will conduct a Method 9 assessment within the next operating day of the sources associated with the potential noncompliance to determine the degree of opacity and will notify the NYSDEC if the method 9 test indicates that the opacity standard is not met.

Records of visible emissions observations (or any follow-up method 9 tests), investigations and corrective actions will be kept on-site. Should the Department determine that permittee's record keeping format is inadequate to demonstrate compliance with this condition, it shall provide written notice to the permittee stating the inadequacies, and permittee shall have 90 days to revise its prospective record keeping format in a manner acceptable to the Department.

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: EPA Method 9 Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: 6-MINUTE AVERAGE (METHOD 9) Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2012. Subsequent reports are due every 6 calendar month(s).

Condition 61: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 225-1.7 (c)Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 43 FINAL Item 61.1: The Compliance Certification activity will be performed for:

Emission Unit: 5-90020

Item 61.2: 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 five years.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: AVERAGING METHOD AS PER REFERENCE TEST METHOD INDICATED Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 62: Sulfur in fuel exception reporting Effective between the dates of 05/16/2008 and 05/15/2013

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

Item 62.1: This Condition applies to Emission Unit: 5-90020

Item 62.2: Source owners subject to 6 NYCRR Part 225-1.7 must submit a written report of the fuel sulfur content excceding the applicable sulfur-in-fuel limitation, or of measured emissions exceeding the applicable equivalent emission rate, and the nature and cause of such excesses if known, for the calendar quarter.

Condition 63: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-1.3

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

Emission Unit: 5-90020

Item 63.2: Compliance Certification shall include the following monitoring:Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 44 FINAL Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Stack opacity shall not exceed 20 percent (six minute average), except for one six-minute period per hour of not more than 27 percent opacity. Compliance with this standard shall be determined with Continuous Opacity Monitoring System (COMS) data. The owner shall install, operate in accordance with manufacturer's instructions, and properly maintain, a COMS in the stack satisfying the crtieria in Appendix B of 40 CFR part 60.

The owner shall submit an accurate excess emissions and monitoring system performance report to the Department for each calendar year quarter. All reports shall be certified by a responsible corporate official as true, accurate and complete and postmarked by the 60th day following the end of each calendar year quarter. The quarterly excess emissions report shall be submitted in a form acceptable to the Department and shall include the following minimum information:

(1) The magnitude, date and time of each six minute block average during which the average opacity of emissions exceeds 20 percent, except for one six minute block average per hour not to exceed 27 percent;

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

(3) Identification of all periods of COMS downtime, including the date, time and duration of each inoperable period, and the cause and corrective action for each COMS downtime period;

(4) The total time in which the COMS are 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 which the COMS are required to record data.

Manufacturer Name/Model Number: Land, Model# 4500 Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: 40 CFR 60 APP B Monitoring Frequency: CONTINUOUS Averaging Method: 6 MINUTE AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2008. Subsequent reports are due every 3 calendar month(s).Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 45 FINAL Condition 64: Testing, monitoring, and reporting requirements for very large boilers. Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227-2.6 (a) (1)

Item 64.1: This Condition applies to:

Emission Unit: 590020 Process: NG1 Emission Source: 00114

Emission Unit: 590020 Process: NG1 Emission Source: 00115

Emission Unit: 590020 Process: RO1 Emission Source: 00114

Emission Unit: 590020 Process: RO1 Emission Source: 00115

Item 64.1: This Condition applies to Emission Unit: 5-90020

Item 64.2.3: The owner/operator shall measure NOx emissions with a continuous emissions monitoring system (CEMS) as described in 6NYCRR 227-2.6(b).

Condition 3-2: Compliance Certification Effective between the dates of 03/20/2012 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 3-2.1: The Compliance Certification activity will be performed for:

Emission Unit: 5-90020

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

Item 3-2.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This condition applies to the two very large boilers, 114 and 115 firing residual oil and natural gas. This condition is necessary to ensure compliance with BARTPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 46 FINAL requirements under EPA's Regional Haze Program.

Sulfur content of residual oil used in these boilers shall not be greater 0.30 percent by weight. A log of the sulfur content in oil per delivery must be maintained on site.

Usage of natural gas ensures that the SO2 emission rate will remain below the EPA's presumptive BART limit of 0.15 pounds per million btu.

Facility shall record the usage of natural gas and residual oil in these boilers . All records shall be kept at the facility for a minimum of five years, and must be available to NYSDEC upon request.

The compliance deadline, with the emission limitation listed in this condition is January 1, 2014. Compliance with the monitoring, record keeping, or reporting requirements listed in this condition begins on January 1, 2014.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2012. Subsequent reports are due every 6 calendar month(s).

Condition 3-3: Compliance Certification Effective between the dates of 03/20/2012 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 3-3.1: The Compliance Certification activity will be performed for:

Emission Unit: 5-90020

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

Item 3-3.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This condition applies to the two very large boilers, 114 and 115 firing residual oil and natural gas. This condition is necessary to ensure compliance with BART requirements under EPA's Regional Haze Program.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 47 FINAL The average NOx emission of boilers 114 and 115 shall not be greater than 0.32 lbs/mmbtu.

All the records shall be kept at the facility for a minimum of five years, and must be available to NYSDEC upon request.

The compliance deadline, with the emission limitation listed in this condition is January 1, 2014. Compliance with the monitoring, record keeping, or reporting requirements listed in this condition begins on January 1, 2014.

Manufacturer Name/Model Number: CEM Upper Permit Limit: 0.32 pounds per million Btus Reference Test Method: EPA approved Monitoring Frequency: CONTINUOUS Averaging Method: 30 DAY ROLLING AVERAGE, ROLLED DAILY Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2012. Subsequent reports are due every 6 calendar month(s).

Condition 3-4: Compliance Certification Effective between the dates of 03/20/2012 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 249.3 (a)

Item 3-4.1: The Compliance Certification activity will be performed for:

Emission Unit: 5-90020

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

Item 3-4.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Particulate matter(PM) emissions of boilers 114 and 115 are limited to 0.1 lbs/mmbtu. This condition is necessary to ensure compliance with BART requirements under EPA's Regional Haze Program.

The facility shall record the boiler consumption of natural gas and residual oil a daily basis. The compliance with the PM emission limit during oil firing shall be verified by performing stack test, using department approved methods, once during the permit term, and forPermit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 48 FINAL natural gas, by using AP 42 emission factors.

The compliance deadline, with the emission limitation listed in this condition is January 1, 2014. Compliance with the monitoring, record keeping, or reporting requirements listed in this condition begins on January 1, 2014.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2012. Subsequent reports are due every 6 calendar month(s).

Condition 3-5: Compliance Certification Effective between the dates of 03/20/2012 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 249.3 (f)

Item 3-5.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: 5-90020 Process: NG1

Emission Unit: 5-90020 Process: RO1

Item 3-5.2: 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: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2012. Subsequent reports are due every 6 calendar month(s).Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 49 FINAL Condition 65: Compliance Certification Effective between the dates of 05/16/2008 and 05/15/2013

Applicable Federal Requirement:6 NYCRR 227.2 (b) (1)

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

Emission Unit: 5-90020 Emission Point: 00001

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

Item 65.2: Compliance Certification shall include the following monitoring:

Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: Particulate emission limit for a stationary combustion installation firing oil. The owner or operator shall complete the following once per term of this permit:

1) submit, to the Department, an acceptable protocol for the testing of particulate emission limit cited in this condition,

2) perform a stack test, based upon the approved test protocol, to determine compliance with the particulate emission limit cited in this condition, and

3) all records shall be maintained at the facility for a minimum of five years.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.10 pounds per million Btus Reference Test Method: Method 5 Monitoring Frequency: ONCE DURING THE TERM OF THE PERMIT Averaging Method: AVERAGING METHOD AS PER REFERENCE TEST METHOD INDICATED Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2008. Subsequent reports are due every 6 calendar month(s).Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 50 FINAL 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 66: Contaminant List Effective between the dates of 05/16/2008 and 05/15/2013

Applicable State Requirement:ECL 19-0301

Item 66.1: 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 51 FINAL CAS No: 0NY075-00-0 Name: PARTICULATES

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

Condition 2-6: Unavoidable noncompliance and violations Effective between the dates of 10/14/2011 and 05/15/2013

Applicable State Requirement:6 NYCRR 201-1.4

Item 2-6.1: 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: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 52 FINAL 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 2-7: Visible Emissions Limited Effective between the dates of 10/14/2011 and 05/15/2013

Applicable State Requirement:6 NYCRR 211.2

Item 2-7.1: Except as permitted by a specific part of this Subchapter and for open fires for which a restricted burning permit has been issued, no person shall cause or allow any air contamination source to emit any material having an opacity equal to or greater than 20 percent (six minute average) except for one continuous six-minute period per hour of not more than 57 percent opacity.

  Emission Unit Level ** **

Condition 2-8: Compliance Demonstration Effective between the dates of 10/14/2011 and 05/15/2013

Applicable State Requirement:6 NYCRR 201-6.6 (a)

Item 2-8.1: The Compliance Demonstration activity will be performed for:

Emission Unit: 5-90005

Item 2-8.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: Operating Limits for Combustion Turbine – Emission Unit 5-90005, Processes GTD and GTN This condition becomes effective on the commencement of gas-burning operating capability of the combustion turbine.

The facility is authorized to operate the combustion turbine as stated in this condition:

(a)Except as provided in (c) and (d) below, the combustion turbine shall be operated with a limitation of a maximum of four (4) hours of operation per day (consecutive or otherwise).Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 53 FINAL (b)Except as further provided in (d) below, the combustion turbine shall burn natural gas for its normal operation and testing. However, this restriction does not apply when testing the combustion turbine to confirm its capability to run on distillate oil is required, or during stack testing required once per term of this permit, when the combustion turbine shall also fire distillate oil.

(c)Periodic testing of the combustion turbine is subject to a maximum of four (4) hours per day except during: (i) the once per term particulate matter emission testing as required by this permit; and (ii) the initial startup, tuning, testing and commissioning of the combustion turbine after it is converted to burn natural gas.
(d)The four (4) hour operating limitation shall not apply during the following events:

1.When an emergency black start is needed for the Station; 2.When an emergency black start is needed for the Con Edison Energy Control Center; 3.During the summer (peak load) months, during an emergency condition or to avoid an emergency condition in the Con Edison 49th Street load pocket; 4.During the non-summer months, during an emergency condition or to avoid an emergency condition in the 49th Street load pocket when one major piece of equipment is off-line for maintenance and two major pieces of equipment fail; 5.When the NYISO or Con Edison operate in a “condition yellow” (i.e., when the system is one contingency from requiring voltage reduction or load shedding to maintain system integrity); or 6.When NYISO declares an emergency or when Con Edison or NYISO declares a maximum generation condition.

In the event of a condition specified in paragraphs (d)1 or 2 above, the combustion turbine shall be permitted to run using distillate oil. In the event of a condition specified in paragraphs (d)3 , 4, 5 or 6 above, the combustion turbine shall be permitted to run using distillate oil for any period when the gas supply to the combustion turbine is curtailed.

The data from the unit's NOx RACT monitoring system shows the daily operating hours of the combustion turbine. The facility will also keep an operating log at the facility to verify the hours of operation of the CT.Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 54 FINAL Work Practice Type: HOURS PER DAY OPERATION Upper Permit Limit: 4 hours Monitoring Frequency: DAILY Averaging Method: 24 HOUR MAXIMUM Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2012. Subsequent reports are due every 6 calendar month(s).Permit ID: 2-6202-00032/00013 Facility DEC ID: 2620200032

Air Pollution Control Permit Conditions Renewal 1/Mod 3/Active Page 55 FINAL