Facility DEC ID: 8261400205

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

IDENTIFICATION INFORMATION

Permit Type: Air Title V Facility Permit ID: 8-2614-00205/01827 Mod 0 Effective Date: 03/13/2009 Expiration Date: 03/12/2014

Mod 1 Effective Date: Expiration Date:

Permit Issued To:EASTMAN KODAK CO 343 STATE ST ROCHESTER, NY 14650

Contact: DANIEL GONZALEZ KODAK OPERATIONS AT EASTMAN BUSINESS PARK 1669 LAKE AVE ROCHESTER, NY 14652-4804 (585) 588-3561

Facility: KODAK OPERATIONS AT EASTMAN BUSINESS PARK 1669 LAKE AVE ROCHESTER, NY 14652

Contact: EDWARD R SILER SUEZ-DEGS OF ROCHESTER LLC 3896 DEWEY AVE - SUITE 325 ROCHESTER, NY 14616 (585) 588-6982

Description: 

### Modification of the Title V Facility Permit issued March 13, 2009 for the Eastman Kodak Company - Eastman Business Park Boilers, operated by SUEZ-Duke Energy Generation Services of Rochester (SDEGS) under a Title V Permit which is separate from the Title V Permit for Kodak manufacturing activities.

This Modified Permit reflects that the coal fired Kodak Boilers 41, 42, and 43 are subject to 6 NYCRR Part 249 Best Available Retrofit Technology, to restrict emissions of visibility-impairing pollutants by requiring installation of BART on sources identified under the rule.

This Permit also includes conditions based on a plan the Department accepted as meeting Part 249 requirements, that Kodak submitted with an evaluation of Boilers 41, 42, and 43.

The plan includes: The permanent shutdown of Boiler 41 by December 31, 2013;Facility DEC ID: 8261400205

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

### Either the permanent shutdown of Boiler 42, or conversion of Boiler 42 from coal fired to natural gas fired, by the compliance date specified in 40 CFR 63 Subpart DDDDD, but no later than August 16, 2017; and The installation of emission control equipment on Boiler 43, sufficient to meet requirements of 40 CFR 63 Subpart DDDDD.

The boilers are also subject to the 40 CFR 64 CAM rule for Part 227-1 particulate emission limits. This Permit includes CAM requirements for particulates from Boilers 41 and 44, similar to those for Boilers 42 and 43 included in the Modified Permit issued in January 2007. CAM requirements for Boilers 41 and 44 were derived from testing in 2009 to establish opacity limits, and specify opacity monitoring as a surrogate parameter for Part 227-1 particulate limits.

New conditions have also been added to this Permit for compliance record keeping for 40 CFR 63 Subpart DDDDD requirements, and the 6 NYCRR Part 243 CAIR NOx Ozone Season Trading Program.

Finally, conditions for the 6 NYCRR Part 204 NOx Budget Rule, which has been repealed, have been eliminated.

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: SCOTT SHEELEY NYS DEC 6274 E AVON-LIMA RD AVON, NY 14414

Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 8261400205

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

Item A: Permittee Accepts Legal Responsibility and Agrees to Indemnification

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

Item B: Permittee's Contractors to Comply with Permit

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

Item C: Permittee Responsible for Obtaining Other Required Permits

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

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

This permit does not convey to the permittee any right to trespass upon the lands or interfere with the riparian rights of others in order to perform the permitted work nor does it authorize the impairment of any rights, title, or interest in real or personal property held or vested in a person not a party to the permit.Facility DEC ID: 8261400205

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

DEC GENERAL CONDITIONS General Provisions Facility Inspection by the Department Relationship of this Permit to Other Department Orders and Determinations Applications for permit renewals, modifications and transfers Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Facility Level Submission of application for permit modification or renewal-REGION 8 HEADQUARTERS Submission of application for permit modification or renewal-REGION 8 HEADQUARTERSFacility DEC ID: 8261400205

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

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

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

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

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

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

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

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

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

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

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should be submitted prior to actual transfer of ownership.Facility DEC ID: 8261400205

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

Item 1-1.1: The Department reserves the right to exercise all available authority to modify, suspend, or revoke this permit in accordance with 6NY CRR Part 621. The grounds for modification, suspension or revocation include:

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

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

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

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

** ** Facility Level  

Condition 1-2: Submission of application for permit modification or renewal-REGION 8 HEADQUARTERS Applicable State Requirement: 6 NYCRR 621.6 (a)

Item 1-2.1: Submission of applications for permit modification or renewal are to be submitted to: NYSDEC Regional Permit Administrator Region 8 Headquarters Division of Environmental Permits 6274 Avon-Lima Road Avon, NY 14414-9519Facility DEC ID: 8261400205

DEC Permit Conditions Renewal 1/Mod 1/DRAFT Page 7 (585) 226-2466

Condition 5: Submission of application for permit modification or renewal-REGION 8 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 8 Headquarters Division of Environmental Permits 6274 Avon-Lima Road Avon, NY 14414-9519 (716) 226-2466Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

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

ARTICLE 19: AIR POLLUTION CONTROL - TITLE V PERMIT

IDENTIFICATION INFORMATION

Permit Issued To:EASTMAN KODAK CO 343 STATE ST ROCHESTER, NY 14650

Facility: KODAK OPERATIONS AT EASTMAN BUSINESS PARK 1669 LAKE AVE ROCHESTER, NY 14652

Authorized Activity By Standard Industrial Classification Code: 3861 - PHOTOGRAPH EQUIPMENT & SUPPLIES 4931 - ELEC & OTHER SERVICES COMBINED

Permit Effective Date: Permit Expiration Date:Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

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

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1-1 6 NYCRR 201-6.5 (a) (7): Fees 1-2 6 NYCRR 201-6.5 (c) (3) (ii): Compliance Certification 5 : Compliance Certification 1-3 6 NYCRR 215.2: Open Fires - Prohibitions 1-4 6 NYCRR 202-1.1: Required Emissions Tests 20 : Visible Emissions Limited 26 6 NYCRR Subpart 201-6: Emission Unit Definition 29 : Contents of reports and compliance certifications. 30 : Compliance Certification 31 : Submission of NOx allowance transfers. 32 : Reference to 40CFR and list of requirements. 33 : Requirements for recertification of monitoring systems. 34 : Out of control periods. 35 : Compliance Certification 36 : Compliance Certification 1-5 6 NYCRR 211.1: Air pollution prohibited 1-6 6 NYCRR Subpart 243-1: Compliance Certification 1-7 6 NYCRR Subpart 243-2: CAIR Representative 1-8 6 NYCRR Subpart 243-8: Monitoring and reporting NOx emissions 1-9 40CFR 63, Subpart DDDDD: Compliance Certification Emission Unit Level 40 6 NYCRR Subpart 201-6: Emission Point Definition By Emission Unit 41 6 NYCRR Subpart 201-6: Process Definition By Emission Unit

EU=U-00015 1-10 6 NYCRR 249.3 (f): Compliance Certification 57 : Compliance Assurance Monitoring (CAM Rule) - Boilers 41 & 44 1-11 40 CFR Part 64: Compliance Certification 1-12 40 CFR Part 64: Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 112 ECL 19-0301: Contaminant List 1-13 6 NYCRR 201-1.4: Unavoidable noncompliance and violations 113 : Unavoidable noncompliance and violations 1-14 6 NYCRR 211.2: Visible Emissions Limited Emission Unit Level

EU=U-00015,Proc=K12 1-15 6 NYCRR Part 249: Compliance Demonstration 1-16 6 NYCRR Part 249: Compliance DemonstrationPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 3 DRAFT FEDERALLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

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

Item A: Em ergency Defens e - 6 NYCRR 201-1.5

An emergency constitutes an affirmative defense to an action brought for noncompliance with emissions limitations or permit conditions for all faci lities in New York State.

(a) The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs, or other relevant evidence that:

(1) An emergency occurred and that the facility owner and/or operator can identify the cause(s) of the emergency; (2) The equipment at the permitted facility causing the emergency was at the time being properly operated; (3) During the period of the emergency the facility owner and/or operator took all reasonable steps to minimize levels of emissions that exceeded the emission standards, or other requirements in the permit; and (4) The facility owner and/or operator notified the Department within two working days after the event occurred. This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken.

(b) In any enforcement proceeding, the facility owner and/or operator seeking to establish the occurrence of an emergency has the burden of proof.

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

Item B: Public Access to Recordkeeping for Title V Facilities - 6 NYCRR 201-1. 10 (b) The Department will make available to the public any permit application, compliance plan, permit, and monitoring and compliance certification report pursuant to Section 503(e) of the Act, except for information entitled to confidential treatment pursuant to 6 NYCRR Part 616 - Public Access to records and Section 114(c) of the Act.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

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

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

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

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

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

This permit does not convey any property rights of any sort or any exclusive privilege.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 5 DRAFT Item I: Seve rability - 6 NYCRR 201-6.5 (a) (9)

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

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

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

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

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

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

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

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

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

i. If additional applicable requirements under the Act become applicable where this permit's remaining term isPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 6 DRAFT three or more years, a reopening shall be completed not later than 18 months after promulgation of the applicable requirement. No such reopening is required if the effective date of the requirement is later than the date on which this permit is due to expire, unless the original permit or any of its terms and conditions has been extended by the Department pursuant to the provisions of Part 201-6.7 and Part 621.

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

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

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

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

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

Item L: Permit Exclusion - ECL 19-0305 The issuance of this permit by the Department and the receipt thereof by the Applicant does not and shall not be construed as barring, diminishing, adjudicating or in any way affecting any legal, administrative or equitable rights or claims, actions, suits, causes of action or demands whatsoever that the Department may have against the Applicant for violations based on facts and circumstances alleged to have occurred or existed prior to the effective date of this permit, including, but not limited to, any enforcement action authorized pursuant to the provisions of applicable federal law, the Environmental Conservation Law of the State of New York (ECL) and Chapter III of the Official Compilation of the Codes, Rules and Regulations of the State of New YorkPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 7 DRAFT (NYCRR). The issuance of this permit also shall not in any way affect pending or future enforcement actions under the Clean Air Act brought by the United States or any person.

Item M: Federally Enforceable Requirements - 40 CFR 70.6 (b) All terms and conditions in this permit required by the Act or any applicable requirement, including any provisions designed to limit a facility's potential to emit, are enforceable by the Administrator and citizens under the Act. The Department has, in this permit, specifically designated any terms and conditions that are not required under the Act or under any of its applicable requirements as being enforceable under only state regulations.

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

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

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

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

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

Condition 1-2: Compliance Certification Effective for entire length of Permit

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

Replaces Condition(s) 5 Item 1-2.1: The Compliance Certification activity will be performed for the Facility.

Item 1-2.2: 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 minimum frequency of every 6 months, based on a calendar yearPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 8 DRAFT reporting schedule. These reports shall be submitted to the Department within 30 days after the end of a reporting period. All instances of deviations from permit requirements must be clearly identified in such reports. All required reports must be certified by the responsible official for this facility.

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

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

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

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

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

If above paragraphs (1) or (2) are met, the source must notify the permitting authority by telephone during normal business hours at the Regional Office of jurisdiction for this permit, attention Regional Air Pollution Control Engineer (RAPCE) according to the timetable listed in paragraphs (1) and (2) of this section. For deviations and incidences that must be reported outside of normal business hours, on weekends, or holidays, the DEC Spill Hotline phone number at 1-800-457-7362 shall be used. A written notice, certified by a responsible officialPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 9 DRAFT consistent with 6 NYCRR Part 201-6.3(d)(12), must be submitted within 10 working days of an occurrence for deviations reported under (1) and (2). All deviations reported under paragraphs (1) and (2) of this section must also be identified in the 6 month monitoring report required above.

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

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

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

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

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

Condition 5: Compliance CertificationPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 10 DRAFT Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Replaced by Condition(s) 1-2 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 minimum frequency of every 6 months, based on a calendar year reporting schedule. These reports shall be submitted to the Department within 30 days after the end of a reporting period. All instances of deviations from permit requirements must be clearly identified in such reports. All required reports must be certified by the responsible official for this facility.

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

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

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

(3) For all other deviations from permit requirements, the report shall be contained in the 6 month monitoring report required above.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 11 DRAFT (4) This permit may contain a more stringent reporting requirement than required by paragraphs (1), (2) or (3) above. If more stringent reporting requirements have been placed in this permit or exist in applicable requirements that apply to this facility, the more stringent reporting requirement shall apply.

If above paragraphs (1) or (2) are met, the source must notify the permitting authority by telephone during normal business hours at the Regional Office of jurisdiction for this permit, attention Regional Air Pollution Control Engineer (RAPCE) according to the timetable listed in paragraphs (1) and (2) of this section. For deviations and incidences that must be reported outside of normal business hours, on weekends, or holidays, the DEC Spill Hotline phone number at 1-800-457-7362 shall be used. 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 paragraphs (1) and (2) of this section must also be identified in the 6 month monitoring report required above.

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

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

In the case of any emission testing performed during the previous six month reporting period, either due to a request by the Department, EPA, or a regulatory requirement, the permittee shall include in the semiannual report a summary of the testing results and shall indicate whether or not the Department or EPA has approved thePermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 12 DRAFT results.

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

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 7/30/2009. Subsequent reports are due every 6 calendar month(s).

Condition 1-3: Open Fires - Prohibitions Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 215.2

Item 1-3.1: Except as allowed by Title 6 NYCRR Section 215.3, no person shall burn, cause, suffer, allow or permit the burning of any materials in an open fire.

Item 1-3.2 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.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 13 DRAFT (h) Burning on an emergency basis of explosive or other dangerous or contraband materials by police or other public safety organization. (i) Prescribed burns performed according to Part 194 of this Title. (j) Fire training, including firefighting, fire rescue, and fire/arson investigation training, performed under applicable rules and guidelines of the New York State Department of State's Office of Fire Prevention and Control. For fire training performed on acquired structures, the structures must be emptied and stripped of any material that is toxic, hazardous or likely to emit toxic smoke (such as asbestos, asphalt shingles and vinyl siding or other vinyl products) prior to burning and must be at least 300 feet from other occupied structures. No more than one structure per lot or within a 300 foot radius (whichever is bigger) may be burned in a training exercise. (k) Individual open fires as approved by the Director of the Division of Air Resources as may be required in response to an outbreak of a plant or animal disease upon request by the commissioner of the Department of Agriculture and Markets, or for the destruction of invasive plant and insect species. (l) Individual open fires that are otherwise authorized under the environmental conservation law, or by rule or regulation of the Department.

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

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

Condition 1-4: Required Emissions Tests Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 1-4.1: For the purpose of ascertaining compliance or non-compliance with any air pollution control code, rule or regulation, the commissioner may require the person who owns such air contamination source to submit an acceptable report of measured emissions within a stated time.

Condition 20: Visible Emissions Limited Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 20.1: Except as permitted by a specific part of this Subchapter and for open fires for which a restricted burning permit has been issued, no person shall cause or allow any air contamination source to emit any material having an opacity equal to or greater than 20 percent (six minute average) except for one continuous six-minute period per hour of not more than 57 percent opacity.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 14 DRAFT The following conditions are subject to annual compliance certification requirements for Title V permits only.

Condition 26: Emission Unit Definition Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 26.1(From Mod 1): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00015 Emission Unit Description: BUILDING 31 AND 321 STATIONARY COMBUSTION INSTALLATIONS, INCLUDING PACKAGE ABD BUILT UP BOILERS USED FOR THE GENERATION OF PROCESS STEAM AND ELECTRICITY

Building(s): 031 321

Item 26.2(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00035 Emission Unit Description: UTILITIES SUPPLY SIDE MISCELLANEOUS STORAGE VESSELS

Building(s): 031 321

Item 26.3(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-00051 Emission Unit Description: COAL AND ASH HANDLING SYSTEMS INCLUDING FUGITIVE EMISSIONS FROM THE KPS COAL PILE AND EXEMPT ACTIVITIES FROM BUILDING 31

Building(s): 321 M90

Condition 29: Contents of reports and compliance certifications. Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 15 DRAFT Item 29.1: This Condition applies to:

Emission Unit: U00015 Process: K12

Emission Unit: U00015 Process: K13

Emission Unit: U00015 Process: K14

Emission Unit: U00015 Process: K15

Item 29.2: The NOx authorized account representative shall include in the compliance certification report the following elements, in a format prescribed by the Administrator, concerning each unit at the source and subject to the NOx Budget emissions limitation for the control period covered by the report:

(1) Identification of each NOx Budget unit; and

(2) In the compliance certification report the NOx authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the NOx Budget units at the source in compliance with the NOx Budget Trading Program, whether each NOx Budget unit for which the compliance certification is submitted was operated during the calendar year covered by the report in compliance with the requirements of the NOx Budget Trading Program applicable to the unit, including:

(i) Whether the unit was operated in compliance with the NOx Budget emissions limitation; (ii) Whether the monitoring plan that governs the unit has been maintained to reflect the actual operation and monitoring of the unit, and contains all information necessary to attribute NOx emissions to the unit, in accordance with Subpart 204-8; (iii) Whether all the NOx emissions from the unit, or a group of units (including the unit) using a common stack, were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in accordance with Subpart 204-8. If cond itional data were reported, the owner or operator shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions has been made; (iv) Whether the facts that form the basis for certification under Subpart 204-8 of each monitor at the unit or a group of units (including the unit) using a common stack, or for using an excepted monitoring method or alternative monitoring method approved under Subpart 204-8, if any, has changed; and (v) If a change is required to be reported under item (iv) above, specify the nature of the change, the reason for the change, when the change occurred, and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitor recertification.

At the NOx authorized account representative's option the following may be included in the compliance certification report:

(1) The serial numbers of the NOx allowances that are to be deducted from each unit'sPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 16 DRAFT compliance account under Section 204-6.5 for the control period; and (2) For units sharing a common stack and having NOx emissions that are not monitored separately or apportioned in accordance with Subpart 204-8, the percentage of NOx allowances that is to be deducted from each unit's compliance account under Subdivision 204-6.5(e).

Condition 30: Compliance Certification Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 30.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: U-00015 Process: K12

Emission Unit: U-00015 Process: K13

Emission Unit: U-00015 Process: K14

Emission Unit: U-00015 Process: K15

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

Item 30.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: For the 2008 control period and every control period thereafter:

(1) if the number resulting from multiplying the unit's uncontrolled emission rate as of 1995 by 0.4 is less than or equal to 0.17 lb/mmBtu, multiply the average of the highest heat input experienced by the unit for any two control periods among the four control periods preceding the date by which the department must submit the NOx allocations to the administrator pursuant to section 204-5.2(b) of this Subpart by 0.17 lb/mmBtu; and

(2) if the number resulting from multiplying the unit's uncontrolled emission rate as of 1995 by 0.4 is greater than 0.17 lb/mmBtu, multiply the average of the highest heat input experienced by the unit for any two control periods among the four control periods preceding the datePermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 17 DRAFT by which the department must submit the NOx allocations to the administrator pursuant to section 204-5.2(b) of this Subpart by the number resulting from multiplying the unit's uncontrolled emission rate as of 1995 by 0.4.

Units which have previously received NOx allowances from the department general account established for the distribution of NOx allowances allocated to the new non-electricity generating unit sector set-aside allocation under subdivision (e) of this section. For every control period for which NOx allowances will be allocated, multiply the greatest heat input experienced by the unit for any single control period among the three control periods preceding the date by which the department must submit the NOx allocations to the administrator pursuant to section 204-5.2(b) of this Subpart by 0.17 lb/mmBtu.

For the second round calculation: (i) When the sum of the first round calculation results for all non-electricity generating units is greater than or equal to the number representing the 82 percent portion of the non-electricity generating unit sector budget:

(a) for units covered by clause (1)(i)(a) or subclause (1)(i)(b)(1) of this subdivision, the allocation factor is one; and

(b) for units covered by subclause (1)(i)(b)(2) and subparagraph (1)(ii) of this subdivision, determine the allocation factor by dividing the total of the 82 percent portion of the non-electricity generating unit sector budget minus the sum of the first round calculation results for units covered by subclause (1)(i)(b)(1) of this subdivision by the sum of the first round calculation results for units covered by subclause (1)(i)(b)(2) and subparagraph (1)(ii) of this subdivision.

(ii) When the sum of the first round calculation results for all non-electricity generating units is less than the number representing the 82 percent portion of the non-electricity generating unit sector budget, determine the allocation factor by dividing the 82 percent portion of the non-electricity generating unit sector budget by the sum of the first round calculations for all non-electricity generating units.

For the third round calculation: Multiply the allocation factor by each unit's first round calculation result.Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 18 DRAFT For the fourth round calculation: The number of NOx allowances to be allocated to each unit will be the lesser of:

(i) the number representing the unit's CPPTE; or

(ii) the third round calculation result for the unit plus the number representing the unit's proportional share of any unassigned NOx allowances remaining in the 82 percent portion of the non-electricity generating unit sector budget as determined by dividing the unit's first round calculation result by the sum of the first round calculation results for all units.

Note: In this fourth round calculation NOx allowances may initially remain unassigned b ecause the CPPTE limitation of subparagraph (d)(4)(i) of this section may affect some units sooner than others leaving some NOx allowances unallocated after the calculation is first performed. Thus, this fourth round calculation may be performed more than once in order to allocate all remaining unassigned NOx allowances.

Monitoring Frequency: CONTINUOUS Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2009. Subsequent reports are due every 6 calendar month(s).

Condition 31: Submission of NOx allowance transfers. Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1

Item 31.1: This Condition applies to:

Emission Unit: U00015 Process: K12

Emission Unit: U00015 Process: K13

Emission Unit: U00015 Process: K14

Emission Unit: U00015 Process: K15Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 19 DRAFT Item 31.2: The NOx authorized account representatives seeking recordation of a NOx allowance transfer shall submit the transfer to the Administrator. To be considered correctly submitted, the NOx allowance transfer shall include the following elements in a format specified by the Administrator:

(a) The numbers identifying both the transferor and transferee accounts; (b) A specification by serial number of each NOx allowance to be transferred; and (c) The printed name and signature of the NOx authorized account representative of the transferor account and the date signed.

Condition 32: Reference to 40CFR and list of requirements. Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1

Item 32.1: This Condition applies to:

Emission Unit: U00015 Process: K12

Emission Unit: U00015 Process: K13

Emission Unit: U00015 Process: K14

Emission Unit: U00015 Process: K15

Item 32.2: The owners and operators, and to the extent applicable, the NOx authorized account representative of a NOx Budget unit, shall comply with the monitoring 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 204-1.2 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 replaced by the terms "NOx Budget unit," "NOx authorized account representative," and "continuous emission monitoring system" (or "CEMS"), respectively, as defined in Section 204-1.2.

The owner or operator of each NOx Budget unit must meet the following requirements. These provisions also apply to a unit for which an application for a NOx Budget opt-in permit is submitted and not denied or withdrawn, as provided in Subpart 204-9:

(1) Install all monitoring systems required under this Subpart for monitoring NOx mass. This includes all systems required to monitor NOx emission rate, NOx concentration, heat input, and flow, in accordance with 40 CFR 75.71 and 75.72. (2) Install all monitoring systems for monitoring heat input, if required under Section 204-8.7 for developing NOx allowance allocations. (3) Successfully complete all certification tests required under Section 204-8.2 and meet all other provisions of this Subpart and 40 CFR Part 75 applicable to the monitoring systems underPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 20 DRAFT paragraphs (a)(1) and (2) of this section. (4) Record and report data from the monitoring systems under paragraphs (a)(1) and (2) of this section.

Condition 33: Requirements for recertification of monitoring systems. Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1

Item 33.1: This Condition applies to:

Emission Unit: U00015 Process: K12

Emission Unit: U00015 Process: K13

Emission Unit: U00015 Process: K14

Emission Unit: U00015 Process: K15

Item 33.2: Whenever the owner or operator makes a replacement, modification, or change in a certified monitoring system that the Administrator or the Department determines significantly affects the ability of the system to accurately measure or record NOx mass emissions or heat input or to meet the requirements of 40 CFR 75.21 or Appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system according to 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that the Administrator or the Department determines to significantly change the flow or concentration profile, the owner or operator shall recertify the continuous emissions monitoring system according to 40 CFR 75.20(b). Examples of changes which require recertification include: replacement of the analyzer, change in location or orientation of the sampling probe or site, or changing of flow rate monitor polynomial coefficients.

Condition 34: Out of control periods. Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1

Item 34.1: This Condition applies to:

Emission Unit: U00015 Process: K12Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 21 DRAFT Emission Unit: U00015 Process: K13

Emission Unit: U00015 Process: K14

Emission Unit: U00015 Process: K15

Item 34.2: Whenever any monitoring system fails to meet the quality assurance requirements of Appendix B of 40 CFR Part 75, data shall be substituted using the applicable procedures in Subpart D, Appendix D, or Appendix E of 40 CFR Part 75.

Condition 35: Compliance Certification Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1 Item 35.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: U-00015 Process: K12

Emission Unit: U-00015 Process: K13

Emission Unit: U-00015 Process: K14

Emission Unit: U-00015 Process: K15

Item 35.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The Authorized Account Representative for a NOx Budget unit shall submit written notice to the Department and the USEPA Administrator in accordance with the requirements of this subpart as follows:

All monitoring plans or monitoring plan modifications; compliance certifications, recertifications and quarterly QA/QC reports; and, petitions for alternative monitoring, shall be submitted to the USEPA Administrator (or his/her representatives) as well as two copies to the Department (one copy to the Regional Air Pollution Control Engineer (RAPCES) in the regional office and one copy to the BureauPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 22 DRAFT of Quality Assurance (BQA) in the DEC central office. All Authorized Account Representative changes shall be sent to the NYSDEC central office.

All quarterly emission data shall be electronically filed with the USEPA Clean Air Markets Division with a copy (disc or hard copy) to the NYSDEC offices.

The address for the USEPA Administrator is as follows:

USEPA Clean Air Markets Division 1200 Pennsylvania Avenue, NW Mail Code 6204J Washington D.C. 20460

CEM Coordinator USEPA-Region 2 2890 Woodbridge Avenue Edison, N.J. 08837

The address for the BQA is as follows:

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

AAR changes should be sent to the attention of:

NYSDEC Stationary Source Planning Section Bureau of Air Quality Planning 625 Broadway, 2nd Floor Albany NY 12233-3251

The address for the RAPCE is as follows:

6274 East Avon-Lima Road Avon, NY 14414-9519

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

Condition 36: Compliance Certification Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Expired by Mod 1Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 23 DRAFT Item 36.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:

Emission Unit: U-00015 Process: K12

Emission Unit: U-00015 Process: K13

Emission Unit: U-00015 Process: K14

Emission Unit: U-00015 Process: K15

Item 36.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The owner or operator of a unit that elects to monitor and report NOx Mass emissions using a NOx concentration system and a flow system shall also monitor and report heat input at the unit level using the procedures set forth in 40 CFR Part 75.

Monitoring Frequency: HOURLY Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2009. Subsequent reports are due every 3 calendar month(s).

Condition 1-5: Air pollution prohibited Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 211.1

Item 1-5.1: 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 1-6: Compliance Certification Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 243-1Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 24 DRAFT Item 1-6.1: The Compliance Certification activity will be performed for the Facility.

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

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

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1. Nitrogen oxides ozone season emission requirements a) As of midnight of November 30, or midnight of the first business day thereafter if November 30 is not a business day, the owners and operators shall hold, in their compliance account, CAIR NOx ozone season allowances available for compliance deductions for the previous control period (May 1 through September 30), in an amount not less than the total tons of nitrogen oxides emissions from all CAIR NOx ozone season units at the source during that control period.

(b) A CAIR NOx ozone season allowance shall not be deducted, for compliance with the requirements under paragraph (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.

(c) 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.

(d) 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.
(e) 'Excess emissions requirements.' If a CAIR NOx ozone season source emits nitrogen oxides during any control period in excess of the CAIR NOx ozone season emissions limitation, 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 6NYCRR Part 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. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this permit, the Act, and applicablePermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 25 DRAFT State law.

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

(i) The certificate of representation under 6NYCRR Part 243-2.4 for the CAIR NOx ozone sesason designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five year period until such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 243-2.4 changing the CAIR NOx ozone season designated representative.

(ii) All emissions monitoring information, in accordance with 6NYCRR Part 234-8, provided that to the extent that 6NYCRR Part 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.

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

Condition 1-7: CAIR Representative Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 243-2

Item 1-7.1:

1) Each Clean Air Interstate Rule (CAIR) NOx source shall have one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 243-2.2, with regard to all matters under the CAIR NOx Ozone Season Trading Program. The CAIRPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 26 DRAFT designated representative shall be selected by an agreement binding on the owners and operators of the source and act in accordance with the certification statement in 6NYCRR Part 243-2.4(a)(4)(iv). Upon receipt by the Administrator of a complete certificate of representation under 6NYCRR Part 243-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx Ozone Season source represented 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. [243-2.1(a), (b) & (c)]

(2) 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." [243-2.1(e)]

Condition 1-8: Monitoring and reporting NOx emissions Effective for entire length of Permit

Applicable Federa l Requirement:6 NYCRR Subpart 243-8

Item 1-8.1:

Monitoring and Reporting NOx emissions

(1) The owners and operators, and to the extent applicable, the CAIR designated representative shall comply with all recordkeeping and reporting requirements in this condition, the applicable recordkeeping and reporting requirements under 40 CFR 75, and the requirements of 6NYCRR Part 243-2.1(e)(1).

(2) The CAIR designated representative shall submit quarterly reports of the the NOx mass emissions data and heat input data for each CAIR NOx unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with the calendar quarter covering January 1, 2008 through March 31, 2008.

(3) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.73(f).Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 27 DRAFT (4) 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 (6NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by this Subpart.

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

(i) the monitoring data submitted were recorded in accordance with the applicable requirements of 6NYCRR Part 243 and 40 CFR Part 75, including the quality assurance procedures and specifications; and

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

(6) Whenever any monitoring system fails to meet the quality-assurance and quality-control requirements or data validation requirements of 40 CFR part 75, data shall be substituted using the applicable missing data procedures in Subpart D or Subpart H of, or appendix D or appendix E to 40 CFR part 75. [ 243-8.3(a) ]

(7) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under 6NYCRR Part 243-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record NOx mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b) . Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include replacement of the analyzer, complete replacement of an existing continuous emissionPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 28 DRAFT monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system, and any excepted NOx monitoring system under appendix E to 40 CFR part 75, under 6NYCRR Part 243-8.1(a)(1) are subject to the recertification requirements in 40 CFR 75.20(g)(6).

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

Applicable Federal Requirement:40CFR 63, Subpart DDDDD

Item 1-9.1: The Compliance Certification activity will be performed for the Facility.

Regulated Contaminant(s): CAS No: 0NY100-00-0 HAP

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

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Kodak/SUEZ-DEGs shall comply with 40 CFR 63 Subpart DDDDD (NESHAP for Major Sources: Industrial, Commercial and Institutional Boilers and Process Heaters) any associated requirements in 40 CFR 63 Subpart A by the corresponding compliance date and/or other specified deadline.

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

** ** Emission Unit Level  

Condition 40: Emission Point Definition By Emission Unit Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 40.1(From Mod 1): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00015

Emission Point: 00001 Height (ft.): 366 Diameter (in.): 132 NYTMN (km.): 4786.321 NYTME (km.): 283.129 Building: 031

Emission Point: 00003 Height (ft.): 408 Diameter (in.): 144Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 29 DRAFT NYTMN (km.): 4786.321 NYTME (km.): 283.129 Building: 321

Emission Point: 00004 Height (ft.): 409 Diameter (in.): 180 NYTMN (km.): 4786.321 NYTME (km.): 283.129 Building: 321

Item 40.2(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00035

Emission Point: 03104 Height (ft.): 72 Diameter (in.): 2 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: 031

Emission Point: 321A0 Height (ft.): 187 Diameter (in.): 2 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: 321

Item 40.3(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00051

Emission Point: 32102 Height (ft.): 65 Diameter (in.): 96 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: 321

Emission Point: 32106 Height (ft.): 135 Diameter (in.): 24 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: 321

Emission Point: 32107 Height (ft.): 33 Diameter (in.): 6 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: 321

Emission Point: M9001 Height (ft.): 24 Diameter (in.): 10 NYTMN (km.): 4786.437 NYTME (km.): 284.912 Building: M90

Condition 41: Process Definition By Emission Unit Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 41.1(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00015 Process: K07 Source Classification Code: 1-02-004-01 Process Description: NO 6 FUEL OIL COMBUSTION IN PACKAGE BOILERSPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 30 DRAFT Emission Source/Control: 031AC - Combustion

Emission Source/Control: 031AD - Combustion

Emission Source/Control: 031AE - Combustion

Emission Source/Control: 031AF - Combustion

Item 41.2(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00015 Process: K12 Source Classification Code: 1-02-004-01 Process Description: NO 6 FUEL OIL COMBUSTION FOR BUILT UP BOILERS 41, 42 AND 43

Emission Source/Control: 321AG - Combustion

Emission Source/Control: 321AH - Combustion

Emission Source/Control: 321AI - Combustion

Emission Source/Control: 32101 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Emission Source/Control: 32102 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Emission Source/Control: 32104 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 41.3(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00015 Process: K13 Source Classification Code: 1-02-002-03 Process Description: BITUMINOUS COAL COMBUSTION FOR BUILT UP BOILERS #41, 42 AND 43.

Emission Source/Control: 321AG - Combustion

Emission Source/Control: 321AH - Combustion

Emission Source/Control: 321AI - Combustion

Emission Source/Control: 32101 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Emission Source/Control: 32102 - Control Control Type: ELECTROSTATIC PRECIPITATORPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 31 DRAFT Emission Source/Control: 32104 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 41.4(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00015 Process: K14 Source Classification Code: 1-02-005-01 Process Description: NO. 2 FUEL OIL COMBUSTION WITH NSPS APPLICABILITY IN #44 BOILER.

Emission Source/Control: 321AJ - Combustion

Emission Source/Control: 32103 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 41.5(From Mod 1): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00015 Process: K15 Source Classification Code: 1-02-002-02 Process Description: BITUMINOUS LOW SULFUR COAL COMBUSTION WITH NSPS APPLICABILITY, IN 44 BOILER

Emission Source/Control: 321AJ - Combustion

Emission Source/Control: 32103 - Control Control Type: ELECTROSTATIC PRECIPITATOR

Item 41.6(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00035 Process: K16 Source Classification Code: 3-16-130-02 Process Description: NO. 2 FUEL OIL STORAGE

Emission Source/Control: 001AE - Process

Item 41.7(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00035 Process: K25 Source Classification Code: 3-16-130-02 Process Description: BOILER FEEDWATER ADDITIVE STORAGE

Emission Source/Control: 321AK - Process

Item 41.8(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 32 DRAFT Emission Unit: U-00035 Process: PTC Source Classification Code: 4-01-003-36 Process Description: SOLVENT METAL CLEANING MACHINES IN BUILDING 31 AND 321

Emission Source/Control: 031PC - Process

Emission Source/Control: 321PC - Process

Item 41.9(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00051 Process: K18 Source Classification Code: 3-05-101-99 Process Description: COAL ASH STORAGE AND TRANSFER OPERATIONS

Emission Source/Control: 32106 - Control Control Type: FABRIC FILTER

Emission Source/Control: 32111 - Control Control Type: FABRIC FILTER

Emission Source/Control: M9001 - Control Control Type: FABRIC FILTER

Emission Source/Control: 321AA - Process

Emission Source/Control: 321AD - Process

Emission Source/Control: 321AE - Process

Emission Source/Control: M90AA - Process

Condition 1-10: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:6 NYCRR 249.3 (f)

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

Emission Unit: U-00015

Regulated Contaminant(s): CAS No: 007446-09-5 SULFUR DIOXIDE CAS No: 0NY075-00-5 PM-10 CAS No: 0NY210-00-0 OXIDES OF NITROGEN

Item 1-10.2: Compliance Certification shall include the following monitoring:Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 33 DRAFT Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The conditions 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. Subsequent reports are due every 6 calendar month(s).

Condition 57: Compliance Assurance Monitoring (CAM Rule) - Boilers 41 & 44 Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable Federal Requirement:

Replaced by Condition(s) 1-11, 1-12 Item 57.1: This Condition applies to Emission Unit: U-00015

Item 57.2: Boilers 41 (ES 321AG) and 44 (ES 321AJ) located at Building 321 in Kodak Park are subject to the requirements of the Compliance Assurance Monitoring Rule (CAM Rule) for particulate emissions. CAM will be implemented as follows:

Boilers 41 is subject to a Part 227-1.2(a)(4) particulate limit of 0.26 lb/mmbtu and Boiler 44 is subject to a 40 CFR 52.21, Subpart A particulate limit of 0.035 lb/mmbtu. Testing will be conducted to correlate compliant particulate emissions with opacity, and ESP operating parameters and other process data to the extent possible. Once an opacity range which indicates compliance has been established, Continuous Opacity Monitors (COMS) will be used to assess compliance on a one hour average basis. The permit will be revised to include the specific level at which an exceedance occurs.

In the event that the one hour average opacity exceeds the established range, an investigation and corrective actions will be conducted. The boiler combustion parameters and ESP operating parameters will be evaluated and the following corrective actions will be taken: 1. Reduce boiler load as possible to achieve compliance with one-hour opacity average. 2. Make on-line repairs to units as necessary and re-evaluate system functionality. 3. In the event that full system functionality cannot be restored, the unit will be shut down until repaired.

Each exceedance of the established opacity range shall be reported to the Department in thePermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 34 DRAFT Semi-Annual Monitoring Deviation Report. The report shall include the measured opacity, the duration, and the corrective actions taken.

The permittee shall fulfill key obligations under the CAM Plan as follows: 1) A Continuous Opacity Monitoring System (COMS) shall be installed in the breeching at the outlet of the Electrostatic Precipitator (ESP) for each boiler (Boiler 41 & 44). The COMS shall be installed and operated in accordance with QA/QC requirements in 40 CFR Part 60 Appendix B.

2) Particulate emissions testing shall be conducted within 180 days of the issue date of this first Renewal Permit to establish the compliance monitoring indicator(s). Thereafter, particulate emissions testing to re-establish the compliance indicator(s) shall be conducted at least once during the term of the permit. A test notification and protocol shall be submitted 30 days prior to a planned test date. A test report shall be submitted to the Department within 60 days of completing testing along with the proposed compliance indicator(s).

3) The CAM monitoring system shall be implemented within 180 days of the issue date of this first Renewal Permit. Implementation of the CAM monitoring system shall consist of: completion of the required particulate emission testing; submission of the test report, including the proposed compliance indicator; and beginning monitoring in accordance with the proposed indicators.

Condition 1-11: Compliance Certification Effective for entire length of Permit

Applicable Federal Requirement:40 CFR Part 64

Replaces Condition(s) 57 Item 1-11.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00015

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

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

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: For the purposes of demonstrating compliance with 40 CFR 52.21 Prevention of Significant Deterioration (PSD) and 6 NYCRR Part 227-1.2(a)(3) particulate limits of 0.035 lb/mmbtu for Boiler 44 (ES 321AJ/ EP 00004), Compliance Assurance Monitoring Rule (CAM) requirements apply in accordance with the CAM Plan, effective September 2009 (or more recent plan approved by the Department). Opacity shall be measured by the continuous opacity monitoringPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 35 DRAFT system (COMS) at the outlet of the Boiler 44 ESP (Control Device 32103). The COMS shall be operated, calibrated and maintained in accordance with QA/QC requirements in 40 CFR Part 60 Appendix B. This breeching COM data shall be used an indicator of compliance with the particulate limit as demonstrated by the most recent stack test completed in November 2009. Based on these test results, an exsursion is defined as an opacity value (3-hour block average of 6 minute data averages) greater than 9.0%, except during periods of startup, shutdown, and malfunction.

Response to Excursions In the event that an opacity excursion occurs, the control equipment and breeching COMS shall be inspected and necessary repairs initiated, as appropriate. The boiler combustion parameters and ESP operating parameters will be evaluated and the following corrective actions will be taken: 1. Reduce boiler load as possible to achieve compliance with one-hour opacity average. 2. Make on-line repairs to units as necessary and re-evaluate system functionality. 3. In the event that full system functionality cannot be restored, the unit will be shut down and repaired as soon as plant loading conditions permit.

If continued accumulation of excursions exceeds 5 percent of breeching opacity COM data (averaged over a 3-hour block period, excluding startup and shutdown periods) recorded in a calendar quarter, a Quality Improvement Plan (QIP) will be implemented as set forth in the CAM Plan and 40 CFR 64.8. As an initial step of the QIP, additional stack testing shall be performed within the time specified by the Department to demonstrate compliance with the particulate standard and/or establish a basis for adjustment of the breeching opacity limit, as necessary.
Regardless of whether a QIP is implemented, particulate emissions testing to re-establish the compliance indicator shall be conducted at least once during the term of the permit (i.e. prior to application for Title V Permit Renewal). A test notification and protocol shall be submitted 30 days prior to a planned test date. A test report shall be submitted to the Department within 60 days of completing testing along with the proposed compliance indicator(s).

Record keeping The operator shall maintain records in accordance with 40 CFR 64.9(b). All data required for compliance with thisPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 36 DRAFT condition shall be kept on site and made available to the Department upon request.

Reporting Pursuant to 40 CFR 64.9(a), reports of excursions, COM downtime incidents, and implementation of a QIP shall be included in the Title V Semi-Annual Monitoring Deviation Reports. For each excursion or COM downtime incident, these reports shall include the measured opacity, duration, cause (including unknown cause, if applicable), and the corrective actions taken. If necessary, the reports shall also include a description of the actions takento implement a QIP during the reporting period as specified in 40 CFR 64.8. Upon completion of a QIP, the operator shall include in the next report documentation that the implementation of the plan has been completed and reduced teh likelihood of similar levels of excursions occuring.

Parameter Monitored: OPACITY Upper Permit Limit: 9.0 percent Monitoring Frequency: CONTINUOUS Averaging Method: 3-HOUR BLOCK AVERAGE Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).

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

Applicable Federal Requirement:40 CFR Part 64

Replaces Condition(s) 57 Item 1-12.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00015

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

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

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: For the purpose of demonstrating compliance with the Part 227-1.2(a)(4) particulate limits of 0.26 lb/mmbtu for Boiler 41 (ES 321AG/ EP 00003), Compliance Assurance Monitoring Rule (CAM) requirements apply in accordance with the CAM Plan, effective September 2009 (or morePermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 37 DRAFT recent plan approved by the Department). Opacity shall be measured by the continuous opacity monitoring system (COMS) at the outlet of the Boiler 41 ESP (Control Device 32101). The COMS shall be operated, calibrated and maintained in accordance with QA/QC requirements in 40 CFR Part 60 Appendix B. This breeching COM data shall be used an indicator of compliance with the particulate limit as demonstrated by the most recent stack test completed in June 2009. Based on these test results, an exsursion is defined as an opacity value (3-hour block average of 6 minute data averages) greater than 13.0%, except during periods of startup, shutdown, and malfunction.

Response to Excursions In the event that an opacity excursion occurs, the control equipment and breeching COMS shall be inspected and necessary repairs initiated, as appropriate. The boiler combustion parameters and ESP operating parameters will be evaluated and the following corrective actions will be taken: 1. Reduce boiler load as possible to achieve compliance with one-hour opacity average. 2. Make on-line repairs to units as necessary and re-evaluate system functionality. 3. In the event that full system functionality cannot be restored, the unit will be shut down and repaired as soon as plant loading conditions permit.

If continued accumulation of excursions exceeds 5 percent of breeching opacity COM data (averaged over a 3-hour block period, excluding startup and shutdown periods) recorded in a calendar quarter, a Quality Improvement Plan (QIP) will be implemented as set forth in the CAM Plan and 40 CFR 64.8. As an initial step of the QIP, additional stack testing shall be performed within the time specified by the Department to demonstrate compliance with the particulate standard and/or establish a basis for adjustment of the breeching opacity limit, as necessary.
Regardless of whether a QIP is implemented, particulate emissions testing to re-establish the compliance indicator shall be conducted at least once during the term of the permit (i.e. prior to application for Title V Permit Renewal). A test notification and protocol shall be submitted 30 days prior to a planned test date. A test report shall be submitted to the Department within 60 days of completing testing along with the proposed compliance indicator(s).

Record keepingPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 38 DRAFT The operator shall maintain records in accordance with 40 CFR 64.9(b). All data required for compliance with this condition shall be kept on site and made available to the Department upon request.

Reporting Pursuant to 40 CFR 64.9(a), reports of excursions, COM downtime incidents, and implementation of a QIP shall be included in the Title V Semi-Annual Monitoring Deviation Reports. For each excursion or COM downtime incident, these reports shall include the measured opacity, duration, cause (including unknown cause, if applicable), and the corrective actions taken. If necessary, the reports shall also include a description of the actions takento implement a QIP during the reporting period as specified in 40 CFR 64.8. Upon completion of a QIP, the operator shall include in the next report documentation that the implementation of the plan has been completed and reduced teh likelihood of similar levels of excursions occuring.

Parameter Monitored: OPACITY Upper Permit Limit: 13.0 percent Monitoring Frequency: CONTINUOUS Averaging Method: 3-HOUR BLOCK AVERAGE Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 39 DRAFT STATE ONLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

NOTIFICATION OF GENERAL PERMITTEE OBLIGATIONS This section contains terms and conditions which are not federally enforceable. Permittees may also have other obligations under regulations of general applicability

Item A: General Provisions for State Enforceable Permit Terms and Condition - 6 NYCRR Part 201-5 Any person who owns and/or operates stationary sources shall operate and maintain all emission units and any required emission control devices in compliance with all applicable Parts of this Chapter and existing laws, and shall operate the facility in accordance with all criteria, emission limits, terms, conditions, and standards in this permit. Failure of such person to properly operate and maintain the effectiveness of such emission units and emission control devices may be sufficient reason for the Department to revoke or deny a permit.

The owner or operator of the permitted facility must maintain all required records on-site for a period of five years and make them available to representatives of the Department upon request. Department representatives must be granted access to any facility regulated by this Subpart, during normal operating hours, for the purpose of determining compliance with this and any other state and federal air pollution control requirements, regulations or law.

STATE ONLY APPLICABLE REQUIREMENTS The following conditions are state applicable requirements and are not subject to compliance certification requirements unless otherwise noted or required under 6 NYCRR Part 201.

Condition 112: Contaminant List Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable State Requirement:ECL 19-0301

Item 112.1: Emissions of the following contaminants are subject to contaminant specific requirements in this permit(emission limits, control requirements or compliance monitoring conditions).

CAS No: 000124-38-9 Name: CARBON DIOXIDEPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 40 DRAFT CAS No: 000630-08-0 Name: CARBON MONOXIDE

CAS No: 007446-09-5 Name: SULFUR DIOXIDE

CAS No: 007664-93-9 Name: SULFURIC ACID

CAS No: 007704-34-9 Name: SULFUR

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

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

CAS No: 0NY075-02-5 Name: PM 2.5

CAS No: 0NY100-00-0 Name: HAP

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

CAS No: 0NY998-00-0 Name: VOC

Condition 1-13: Unavoidable noncompliance and violations Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 201-1.4

Item 1-13.1: 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 forPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 41 DRAFT 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, as 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 113: Unavoidable noncompliance and violations Effective between the dates of 03/13/2009 and Permit Expiration Date

Applicable State Requirement:

Expired by Mod 1 Item 113.1: 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, frequencyPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 42 DRAFT 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, as 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 1-14: Visible Emissions Limited Effective for entire length of Permit

Applicable State Requirement:6 NYCRR 211.2

Item 1-14.1: Except as permitted by a specific part of this Subchapter and for open fires for which a restricted burning permit has been issued, no person shall cause or allow any air contamination source to emit any material having an opacity equal to or greater than 20 percent (six minute average) except for one continuous six-minute period per hour of not more than 57 percent opacity.

** ** Emission Unit Level ****

Condition 1-15: Compliance Demonstration Effective for entire length of PermitPermit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 43 DRAFT Applicable State Requirement:6 NYCRR Part 249

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

Emission Unit: U-00015 Process: K12

Regulated Contaminant(s): CAS No: 0NY075-00-5 PM-10 CAS No: 0NY210-00-0 OXIDES OF NITROGEN CAS No: 007446-09-5 SULFUR DIOXIDE

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

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Pursuant to 6 NYCRR Part 249.3(e), before commencing any required construction or process changes, the owner or operator must submit an application for a permit or permit modification as required under Part 201 of this Title.

Consistent with the Department's approval of SDEGS/Eastman Business Park BART Determination, Boiler 41 will be permanently shut down by December 31, 2013.

SDEGS of Rochester will notify the Department in writing upon retirement of the unit and submit an application for a permit modification to reflect the permanent shutdown of the unit.

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

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

Applicable State Requirement:6 NYCRR Part 249

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

Emission Unit: U-00015 Process: K12Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

Air Pollution Control Permit Conditions Renewal 1/Mod 1/Changes Only Page 44 DRAFT Regulated Contaminant(s): CAS No: 0NY075-00-5 PM-10 CAS No: 0NY210-00-0 OXIDES OF NITROGEN CAS No: 007446-09-5 SULFUR DIOXIDE

Item 1-16.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Pursuant to 6 NYCRR Part 249.3(e), before commencing any required construction or process changes, the owner or operator must submit an application for a permit or permit modification as required under Part 201 of this Title.

Consistent with the Department's approval of SDEGS/Eastman Business Park BART Determination, Boiler 42 will be permanently shut down or repowered by the compliance date specified in the National Emission Standards for Hazardous Air Pollutants (NESHAP) under 40 CFR 63 Subpart DDDDD, but no later than August 16, 2017.

If the decision is made to retire Boiler 42, SDEGS of Rochester will notify the Department in writing upon retirement of the unit and submit an application for a permit modification to reflect the permanent shut down of the unit.

If the decision is made to repower Boiler 42, SDEGS of Rochester will submit an application for a permit modification for the project.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. Subsequent reports are due every 6 calendar month(s).Permit ID: 8-2614-00205/01827 Facility DEC ID: 8261400205

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