Facility DEC ID: 7313200052

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

IDENTIFICATION INFORMATION

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

Mod 2 Effective Date: 05/24/2012 Expiration Date: 05/23/2017

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

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

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

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

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

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

Permit Administrator: ELIZABETH A TRACY 615 ERIE BLVD WEST SYRACUSE, NY 13204-2400

Authorized Signature: _________________________________ Date: ___ / ___ / _____Facility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/FINAL Page 3 Notification of Other State Permittee Obligations

Item A: Permittee Accepts Legal Responsibility and Agrees to Indemnification

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

Item B: Permittee's Contractors to Comply with Permit

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

Item C: Permittee Responsible for Obtaining Other Required Permits

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

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

This permit does not convey to the permittee any right to trespass upon the lands or interfere with the riparian rights of others in order to perform the permitted work nor does it authorize the impairment of any rights, title, or interest in real or personal property held or vested in a person not a party to the permit.Facility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/FINAL Page 4 LIST OF CONDITIONS

DEC GENERAL CONDITIONS General Provisions Facility Inspection by the Department Relationship of this Permit to Other Department Orders and Determinations Applications for permit renewals, modifications and transfers Permit modifications, suspensions or revocations by the Department Permit modifications, suspensions or revocations by the Department Facility Level Submission of application for permit modification or renewal-REGION 7 HEADQUARTERSFacility DEC ID: 7313200052

DEC Permit Conditions Renewal 1/Mod 2/FINAL Page 5 DEC GENERAL CONDITIONS **** General Provisions   For the purpose of your Title V permit, the following section contains state-only enforceable terms and conditions. GENERAL CONDITIONS - Apply to ALL Authorized Permits.

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

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

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

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

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

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

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

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

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

Item 3.3: Permits are transferrable with the approval of the department unless specifically prohibited by the statute, regulation or another permit condition. Applications for permit transfer should be submitted prior to actual transfer of ownership.Facility DEC ID: 7313200052

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

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

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

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

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

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

** ** Facility Level  

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

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

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 1 FINAL Permit Under the Environmental Conservation Law (ECL)

ARTICLE 19: AIR POLLUTION CONTROL - TITLE V PERMIT

IDENTIFICATION INFORMATION

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

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

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

Mod 0 Permit Effective Date: 01/11/2010 Permit Expiration Date: 01/10/2015

Mod 2 Permit Effective Date: 05/24/2012 Permit Expiration Date: 05/23/2017Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

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

FEDERALLY ENFORCEABLE CONDITIONS Facility Level 1 6 NYCRR 200.6: Acceptable Ambient Air Quality 2-1 6 NYCRR 201-6.5 (a) (7): Fees 2 6 NYCRR 201-6.5 (a) (7): Fees 3 6 NYCRR 201-6.5 (c): Recordkeeping and reporting of compliance monitoring 4 6 NYCRR 201-6.5 (c) (2): Monitoring, Related Recordkeeping, and Reporting Requirements. 5 6 NYCRR 201-6.5 (c) (3) (ii): Compliance Certification 6 6 NYCRR 201-6.5 (e): Compliance Certification 7 6 NYCRR 202-2.1: Compliance Certification 8 6 NYCRR 202-2.5: Recordkeeping requirements 9 6 NYCRR Part 215: Open Fires Prohibited at Industrial and Commercial Sites 2-2 6 NYCRR 215.2: Open Fires - Prohibitions 10 6 NYCRR 200.7: Maintenance of Equipment 11 6 NYCRR 201-1.7: Recycling and Salvage 12 6 NYCRR 201-1.8: Prohibition of Reintroduction of Collected Contaminants to the air 13 6 NYCRR 201-3.2 (a): Exempt Sources - Proof of Eligibility 14 6 NYCRR 201-3.3 (a): Trivial Sources - Proof of Eligibility 15 6 NYCRR 201-6.5 (a) (4): Standard Requirement - Provide Information 16 6 NYCRR 201-6.5 (a) (8): General Cond ition - Right to Inspect 17 6 NYCRR 201-6.5 (d) (5): Standard Requirements - Progress Reports 18 6 NYCRR 201-6.5 (f) (6): Off Permit Changes 2-3 6 NYCRR 202-1.1: Required Emissions Tests 19 6 NYCRR 202-1.1: Required Emissions Tests 20 6 NYCRR 211.3: Visible Emissions Limited 21 40 CFR Part 68: Accidental release provisions. 22 40CFR 82, Subpart F: Recycling and Emissions Reduction 23 6 NYCRR 201-1.8: Compliance Certification 24 6 NYCRR Subpart 201-6: Emission Unit Definition 25 6 NYCRR 201-6.5 (f) (1): Compliance Certification 26 6 NYCRR 201-6.5 (g): Non Applicable requirements 2-4 6 NYCRR 211.1: Air pollution prohibited 27 6 NYCRR 212.6 (a): Compliance Certification 28 6 NYCRR 225-1.7 (c): Compliance Certification 29 6 NYCRR Subpart 243-1: Compliance Certification 30 6 NYCRR Subpart 243-2: Compliance Certification 31 6 NYCRR Subpart 243-8: Compliance Certification 32 6 NYCRR Subpart 244-1: CAIR General and Permit Requirments 33 6 NYCRR Subpart 244-2: Designated CAIR Representative 34 6 NYCRR Subpart 244-8: Compliance Certification 35 6 NYCRR Subpart 245-1: CAIR SO2 Trading Program General Provisions 36 6 NYCRR Subpart 245-2: Designated CAIR Representative 37 6 NYCRR Subpart 245-8: Compliance Certification 2-5 6 NYCRR 249.1 (c) (2): Exemption from Part 249Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 3 FINAL Emission Unit Level 38 6 NYCRR Subpart 201-6: Emission Point Definition By Emission Unit 39 6 NYCRR Subpart 201-6: Process Definition By Emission Unit

EU=U-00BLR 40 6 NYCRR 225-1.5 (b): Compliance Certification 41 6 NYCRR 227-1.2 (a) (3): Compliance Certification 42 6 NYCRR 227-2.6 (a) (1): Testing, monitoring, and reporting requirements for very large boilers. 43 6 NYCRR 231-2.6 (a) (7): Compliance Certification 2-6 6 NYCRR 249.1 (c) (2): Compliance Certification 44 6 NYCRR Subpart 257-1: Compliance Certification 45 40CFR 60.14, NSPS Subpart A: Compliance Certification 46 40 CFR Part 64: Compliance Certification

EU=U-00BLR,EP=00001

47 6 NYCRR 227-1.3: Compliance Certification 48 6 NYCRR 227-2.4 (a): Compliance Certification

EU=U-00BLR,EP=00001,Proc=COA,ES=0BAGH 49 6 NYCRR 200.7: Compliance Certification

STATE ONLY ENFORCEABLE CONDITIONS Facility Level 50 ECL 19-0301: Contaminant List 51 6 NYCRR 201-1.4: Unavoidable noncompliance and violations 52 6 NYCRR 211.2: Air pollution prohibited 2-7 6 NYCRR 211.2: Visible Emissions Limited 53 6 NYCRR Subpart 242-1: Compliance Demonstration 54 6 NYCRR Subpart 242-4: Compliance Demonstration 55 6 NYCRR Subpart 242-8: Compliance Demonstration 56 6 NYCRR Part 246: Compliance Demonstration Emission Unit Level

EU=U-00BLR 57 6 NYCRR 617.11 (d): Compliance Demonstration 58 6 NYCRR 617.11 (d): Compliance Demonstration 59 6 NYCRR 617.11 (d): Compliance DemonstrationPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 4 FINAL FEDERALLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

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

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

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

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

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

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

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

Item B: Public Access to Recordkeeping for Title V Facilities - 6 NYCRR 201-1. 10 (b) The Department will make available to the public any permit application, compliance plan, permit, and monitoring and compliance certification report pursuant to Section 503(e) of the Act, except for information entitled to confidential treatment pursuant to 6 NYCRR Part 616 - Public Access to records and Section 114(c) of the Act.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 5 FINAL Item C: Timely Application for the Renewal of Title V Permits - 6 NYCRR 201- 6.3 (a) (4) Owners and/or operators of facilities having an issued Title V permit shall submit a complete application at least 180 days, but not more than eighteen months, prior to the date of permit expiration for permit renewal
purposes.
Item D: Certification by a Responsible Official - 6 NYCRR 201-6.3 (d) (12) Any application, form, report or compliance certification required to be submitted pursuant to the federally enforceable portions of this permit shall contain a certification of truth, accuracy and completeness by a responsible official. This certification shall state that based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

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

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

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

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

This permit does not convey any property rights of any sort or any exclusive privilege.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 6 FINAL Item I: Seve rability - 6 NYCRR 201-6.5 (a) (9)

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

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

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

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

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

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

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

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

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

i. If additional applicable requirements under the Act become applicable where this permit's remaining term isPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 7 FINAL three or more years, a reopening shall be completed not later than 18 months after promulgation of the applicable requirement. No such reopening is required if the effective date of the requirement is later than the date on which this permit is due to expire, unless the original permit or any of its terms and conditions has been extended by the Department pursuant to the provisions of Part 201-6.7 and Part 621.

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

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

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

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

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

Item L: Permit Exclusion - ECL 19-0305 The issuance of this permit by the Department and the receipt thereof by the Applicant does not and shall not be construed as barring, diminishing, adjudicating or in any way affecting any legal, administrative or equitable rights or claims, actions, suits, causes of action or demands whatsoever that the Department may have against the Applicant for violations based on facts and circumstances alleged to have occurred or existed prior to the effective date of this permit, including, but not limited to, any enforcement action authorized pursuant to the provisions of applicable federal law, the Environmental Conservation Law of the State of New York (ECL) and Chapter III of the Official Compilation of the Codes, Rules and Regulations of the State of New YorkPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 8 FINAL (NYCRR). The issuance of this permit also shall not in any way affect pending or future enforcement actions under the Clean Air Act brought by the United States or any person.

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

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

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

Condition 1: Acceptable Ambient Air Quality Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 200.6

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

Condition 2-1: Fees Effective between the dates of 05/24/2012 and 05/23/2017

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

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

Condition 2: Fees Effective between the dates of 01/11/2010 and 05/23/2017

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

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

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 9 FINAL The owner and/or operator of a stationary source shall pay fees to the Department consistent with the fee schedule authorized by ECL 72-0302.

Condition 3: Recordkeeping and reporting of compliance monitoring Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 3.1: The following information must be included in any required compliance monitoring records and reports:

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

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

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

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

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

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

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

Condition 4: Monitoring, Related Recordkeeping, and Reporting Requirements. Effective between the dates of 01/11/2010 and 05/23/2017

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

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

Condition 5: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 5.1: The Compliance Certification activity will be performed for the Facility.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 10 FINAL 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.

(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.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 11 FINAL 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 the results.

All semiannual reports shall be submitted to the Administrator (or his or her representative) as well as two copies to the Department (one copy to the regional air pollution control engineer (RAPCE) in the regional office and one copy to the Bureau of Compliance Monitoring and Enforcement (BCME) in the DEC central office). MailingPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 12 FINAL 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. The initial report is due 7/30/2010. Subsequent reports are due every 6 calendar month(s).

Condition 6: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

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

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

Item 6.2: Compliance Certification shall include the following monitoring:

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

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

ii. The responsible official must include in the annual certification report all terms and conditions contained in this permit which are identified as being subject to certification, including emission limitations, standards, or work practices. That is, the provisions labeled herein as "Compliance Certification" are not the only provisions of this permit for which an annual certification is required.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 13 FINAL iii. Compliance certifications shall be submitted annually. Certification reports are due 30 days after the anniversary date of four consecutive calendar quarters. The first report is due 30 days after the calendar quarter that occurs just prior to the permit anniversary date, unless another quarter has been acceptable by the Department.

iv. All compliance certifications shall be submitted to the Administrator (or his or her representative) as well as two copies to the Department (one copy to the regional air pollution control engineer (RAPCE) in the regional office and one copy to the Bureau of Compliance Monitoring and Enforcement (BCME) in the DEC central office). Please send annual compliance certifications to Chief of the Stationary Source Compliance Section, the Region 2 EPA representative for the Administrator, at the following address:

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

The address for the RAPCE is as follows:

615 Erie Boulevard, West Syracuse, NY 13204-2400

The address for the BCME is as follows:

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

Monitoring Frequency: ANNUALLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due on the same day each year

Condition 7: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 202-2.1

Item 7.1: The Compliance Certification activity will be performed for the Facility.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 14 FINAL Item 7.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Emission statements shall be submitted on or before April 15th each year for emissions of the previous calendar
year.
Monitoring Frequency: ANNUALLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due by April 15th for previous calendar year

Condition 8: Recordkeeping requirements Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 202-2.5

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

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

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

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

Condition 9: Open Fires Prohibited at Industrial and Commercial Sites Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR Part 215

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

Condition 2-2: Open Fires - Prohibitions Effective between the dates of 05/24/2012 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 215.2

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

Item 2-2.2 Per Section 215.3, burning in an open fire, provided it is not contrary to other law or regulation, will be allowed as follows: (a) On-site burning in any town with a total population less than 20,000 of downed limbs and branches (including branches with attached leaves or needles) less than six inches in diameterPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 15 FINAL and eight feet in length between May 15th and the following March 15th. For the purposes of this subdivision, the total population of a town shall include the population of any village or portion thereof located within the town. However, this subdivision shall not be construed to allow burning within any village. (b) Barbecue grills, maple sugar arches and similar outdoor cooking devices when actually used for cooking or processing food. (c) Small fires used for cooking and camp fires provided that only charcoal or untreated wood is used as fuel and the fire is not left unattended until extinguished. (d) On-site burning of agricultural wastes as part of a valid agricultural operation on contiguous agricultural lands larger than five acres actively devoted to agricultural or horticultural use, provided such waste is actually grown or generated on those lands and such waste is capable of being fully burned within a 24-hour period. (e) The use of liquid petroleum fueled smudge pots to prevent frost damage to crops. (f) Ceremonial or celebratory bonfires where not otherwise prohibited by law, provided that only untreated wood or other agricultural products are used as fuel and the fire is not left unattended until extinguished. (g) Small fires that are used to dispose of a flag or religious item, and small fires or other smoke producing process where not otherwise prohibited by law that are used in connection with a religious ceremony. (h) Burning on an emergency basis of explosive or other dangerous or contraband materials by police or other public safety organization. (i) Prescribed burns performed according to Part 194 of this Title. (j) Fire training, including firefighting, fire rescue, and fire/arson investigation training, performed under applicable rules and guidelines of the New York State Department of State's Office of Fire Prevention and Control. For fire training performed on acquired structures, the structures must be emptied and stripped of any material that is toxic, hazardous or likely to emit toxic smoke (such as asbestos, asphalt shingles and vinyl siding or other vinyl products) prior to burning and must be at least 300 feet from other occupied structures. No more than one structure per lot or within a 300 foot radius (whichever is bigger) may be burned in a training exercise. (k) Individual open fires as approved by the Director of the Division of Air Resources as may be required in response to an outbreak of a plant or animal disease upon request by the commissioner of the Department of Agriculture and Markets, or for the destruction of invasive plant and insect species. (l) Individual open fires that are otherwise authorized under the environmental conservation law, or by rule or regulation of the Department.

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

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

Condition 10: Maintenance of Equipment Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 200.7Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 16 FINAL Item 10.1: Any person who owns or operates an air contamination source which is equipped with an emission control device shall operate such device and keep it in a satisfactory state of maintenance and repair in accordance with ordinary and necessary practices, standards and procedures, inclusive of manufacturer's specifications, required to operate such device effectively.

Condition 11: Recycling and Salvage Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 201-1.7

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

Condition 12: Prohibition of Reintroduction of Collected Contaminants to the air Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 201-1.8

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

Condition 13: Exempt Sources - Proof of Eligibility Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 13.1: The owner and/or operator of an emission source or unit that is eligible to be exempt may be required to certify that it operates within the specific criteria described in this Subpart. The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to this Subpart, during normal operating hours, for the purpose of determining compliance with this and any other State and Federal air pollution control requirements, regulations, or law.

Condition 14: Trivial Sources - Proof of Eligibility Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 14.1: The owner and/or operator of an emission source or unit that is listed as being trivial in this Part may be required to certify that it operates within the specific criteria described in this Subpart.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 17 FINAL The owner or operator of any such emission source must maintain all required records on-site for a period of five years and make them available to representatives of the department upon request. Department representatives must be granted access to any facility which contains emission sources or units subject to this Subpart, during normal operating hours, for the purpose of determining compliance with this and any other State and Federal air pollution control requirements, regulations, or law.

Condition 15: Standard Requirement - Provide Information Effective between the dates of 01/11/2010 and 05/23/2017

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

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

Condition 16: General Condition - Right to Inspect Effective between the dates of 01/11/2010 and 05/23/2017

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

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

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

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

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

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

Condition 17: Standard Requirements - Progress Reports Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 17.1: Progress reports consistent with an applicable schedule of compliance are to be submitted at least semiannually, or at a more frequent period if specified in the applicable requirement or byPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 18 FINAL the department. Such progress reports shall contain the following:

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

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

Condition 18: Off Permit Changes Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 18.1: No permit revision will be required for operating changes that contravene an express permit term, provided that such changes would not violate applicable requirements as defined under this Part or contravene federally enforceable monitoring (including test methods), recordkeeping, reporting, or compliance certification permit terms and conditions. Such changes may be made without requiring a permit revision, if the changes are not modifications under any provision of title I of the act and the changes do not exceed the emissions allowable under the permit (whether expressed therein as a rate of emissions or in terms of total emissions) provided that the facility provides the administrator and the department with written notification as required below in advance of the proposed changes within a minimum of seven days. The facility owner or operator, and the department shall attach each such notice to their copy of the relevant permit.

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

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

Condition 2-3: Required Emissions Tests Effective between the dates of 05/24/2012 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 202-1.1

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

Condition 19: Required Emissions Tests Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 202-1.1

Item 19.1: For the purpose of ascertaining compliance or non-compliance with any air pollution control code, rule or regulation, the commissioner may require the person who owns such airPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 19 FINAL contamination source to submit an acceptable report of measured emissions within a stated time. Such person shall bear the cost of measurement and preparing the report of measured emissions. Failure of such person to submit a report acceptable to the commissioner within the time stated shall be sufficient reason for the commissioner to suspend or deny a certificate to operate.

Condition 20: Visible Emissions Limited Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 211.3

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.

Condition 21: Accidental release provisions. Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:40 CFR Part 68

Item 21.1: If a chemical is listed in Tables 1,2,3 or 4 of 40 CFR §68.130 is present in a process in quan tities greater than the threshold quantity listed in Tables 1,2,3 or 4, the following requirements will apply:

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

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

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

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

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

Condition 22: Recycling and Emissions Reduction Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:40CFR 82, Subpart F

Item 22.1: The permittee shall comply with all applicable provisions of 40 CFR Part 82.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 20 FINAL The following conditions are subject to annual compliance certification requirements for Title V permits only.

Condition 23: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 201-1.8

Item 23.1: The Compliance Certification activity will be performed for the Facility.

Item 23.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The facility shall operate in accordance with the Ash Management Plan submitted to and approved by the DEC.

On an annual basis the owner or operator shall report to the DEC whether he or she has complied with this condition.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 24: Emission Unit Definition Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

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

Building(s): BLR HS

Item 24.2(From Mod 0): The facility is authorized to perform regulated processes under this permit for:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 21 FINAL Emission Unit: 0-PAPER Emission Unit Description: Alternative fuel handling and storage. Approved non-recyclable paper materials are unloaded, unpacked, inspected, blended and shredded into "fluff." The fluff is pneumatically conveyed to the boilers for combustion. A dust collection system is used to control emissions from shreding and transfer operations as necessary, with cleaned exhaust recirculated to the building. All process emissions are fugitive.

Building(s): Paper

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

Building(s): ASILO

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

Building(s): BLR HS CRSH B

Item 24.5(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-0COOL Emission Unit Description: Six cell mechanical draft tower used to dissipate waste heat from the cogeneration facility.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 22 FINAL Item 24.6(From Mod 0): The facility is authorized to perform regulated processes under this permit for: Emission Unit: U-0LIME Emission Unit Description: Lime handling and storage (for spray dry adsorber). Pebble lime is pneumatically unloaded from trucks to a storage silo equipped with a bin vent filter. The lime is mixed with water in a slaker, passed through a grit remover and transferred to the lime slurry storage tank before being mixed with additional water and injected into the spray dry adsorber. All process emissions are fugitive or exempt.

Condition 25: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 201-6.5 (f) (1)

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

Item 25.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The following conditions relate to the burning of alternate fuel fluff at this facility (processes ALT and CCA). In accordance with the Department's policy for burning alternative fuels, this condition allows this source to be regulated as a stationary combustion source not subject to the requirements for process incinerators regulated by 6 NYCRR Part 212.

1. The facility is authorized to co-fire coal and alternative fuel in boilers #3, #4 and/or #5. The alternative fuel is processed from pre-consumer, non-recyclable, non-reusable, non-contaminated plastic coated paper, wax coated paper, paper, fibrous material and low chlorine content (less than 1% dry weight as received) plastic film. Demonstration that this is the only type of alternative fuel fired shall be in accordance with the Alternative Fuels QA/QC Plan approved by the Department and attached to this permit.

2. The facility shall not combust any alternative fuel that does not conform to the following specifications (dry basis): Minimum Heat Content - 5000 Btu/lb; Maximum sulfur - 0.48% by weight, Maximum Nitrogen - 1.10% by weight; Maximum Chlorine - 0.18% by weight (see condition #3 below). In addition, a full metals analysis will bePermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 23 FINAL performed for each potential fuel. Compliance with these specifications shall be demonstrated in accordance with procedures specified in the Alternative Fuels QA/QC Plan approved by the Department.

3. Chlorine exception - alternative fuel that tests up to 1.0% by weight chlorine may be accepted to an inventory level not to exceed 10% by weight of the total alternative fuel inventory. Exception materials shall be specifically tagged and blended in the shredding process, meeting a final alternative fuel chlorine content of 0.16% by weight, maximum. Compliance with this exception shall be demonstrated in accordance with procedures specified in the Alternative Fuels QA/QC Plan approved by the Department.

4. The facility is limited to combusting no more than 30 percent by weight alternative fuel on a facility-wide daily basis. The daily total fuel and alternative fuel consumption shall be determined in accordance with procedures specified in the Fuel Consumption Monitoring Plan approved by the Department.

5. Each boiler capable of firing alternative fuel (Boilers 4 or 5) is limited to a maximum alternative fuel firing rate of no more than 9500 lb/hr, determined as a two-hour average. The alternative fuel firing rate shall be determined in accordance with procedures specified in the Fuel Consumption Monitoring Plan approved by the Department. The maximum alternative fuel firing rate may be increased in the future provided emission testing indicates acceptable emissions at the higher rate. Such testing must be performed in accordance with a stack test protocol approved by the Department and within 90 days of exceeding the 9500 lb/hr firing rate.

6. Either the oil igniter or the natural gas/biogas igniter for the alternative fuel burner in each boiler in this process must be operating during all periods that alternative fuel is co-fired. Operational status of oil igniters shall be logged during co-firing and the logs shall be maintained on site.

7. The facility must install and operate a continuous emissions monitor to measure carbon monoxide concentrations in the exhaust stack during co-firing of alternative fuel, as an indicator of good combustion. This monitoring system shall meet the installation requirements of 40 CFR 60 Appendix B, and the QA/QC requirements of 40 CFR 60 Appendix F.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 24 FINAL On a semi-annual calendar year basis, the facility shall submit to the DEC a report stating whether it has complied with this condition.

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 7/30/2010. Subsequent reports are due every 6 calendar month(s).

Condition 26: Non Applicable requirements Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 26.1: This section contains a summary of those requirements that have been specifically identified as being not applicable to this facility and/or emission units, emission points, processes and/or emission sources within this facility. The summary also includes a justification for classifying any such requirements as non-applicable. 40 CFR Part 72, Subpart A Reason: In a letter dated May 13, 2004, the US EPA has concluded that none of the five boilers (Boiler #1, #2, #3, #4 and #5) is subject to the Acid Rain Program.

Condition 2-4: Air pollution prohibited Effective between the dates of 05/24/2012 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 211.1

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

Condition 27: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 212.6 (a)

Item 27.1: The Compliance Certification activity will be performed for the facility: The Compliance Certification applies to:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 25 FINAL Emission Unit: U-00ASH

Emission Unit: U-0COAL

Emission Unit: U-0LIME

Item 27.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: No person shall cause or allow emissions having an average opacity during any six consecutive minutes of 20 percent or greater from any process emission source, except only the emission of uncombined water. The Department reserves the right to perform or require the performance of a Method 9 opacity evaluation at any time during facility operation.

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

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

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

Monitoring Frequency: WEEKLY Averaging Method: 6-MINUTE AVERAGE (METHOD 9) Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 26 FINAL Subsequent reports are due every 12 calendar month(s).

Condition 28: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 28.1: The Compliance Certification activity will be performed for the Facility.

Item 28.2: Compliance Certification shall include the following monitoring:

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

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: SEMI-ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 7/30/2010. Subsequent reports are due every 6 calendar month(s).

Condition 29: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 243-1

Item 29.1: The Compliance Certification activity will be performed for the Facility.

Item 29.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1) As of midnight of November 30, or midnight of the first business day thereafter if November 30 is not a business day, the owners or operators shall hold, in their compliance account, CAIR NOx 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 units at the source during that control period.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 27 FINAL 2) A CAIR NOx allowance shall not be deducted (for compliance with the requirement above) for a control period in a calendar year before the year for which the CAIR NOx allowance was allocated.

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

4) Unless otherwise provided, the owners and operators of the CAIR NOx source 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 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five year period until such documents are superceded because the submission of a new certificate of representation changing the CAIR designated representative.

ii) All emissions monitoring information, provided that to the extent that 6 NYCRR 243-8 provides for a three year period for record keeping, 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 Annual Trading Program.

5) On an annual basis, the owner or operator shall submit, in the compliance certification, a statement whether he or she has complied with this condition.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 28 FINAL Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 30: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 243-2

Item 30.1: The Compliance Certification activity will be performed for the Facility.

Item 30.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1) Each Clean Air Interstate Rule (CAIR) NOx source shall have one CAIR designated representative and may have one alternative representative, as provided in 6 NYCRR 243-2.2, with regard to all matters under the CAIR NOx Ozone Season Trading Program. The CAIR designated representative shall be selected by an agreement binding on the owners and operators of the source and act in accordance with the certification statement in 6 NYCRR 243-2.4(a)(4)(iv). Upon receipt by the Administrator of a complete certificate of representation under 6 NYCRR 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 designated representative and such owners or 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.

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 amPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 29 FINAL familiar with, the statements and information submitted in this document and all of its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

3) On an annual basis, the owner or operator shall submit, in the compliance certification, a statement whether he or she has complied with this condition.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 31: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 243-8

Item 31.1: The Compliance Certification activity will be performed for the Facility.

Item 31.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1) The owners and operators, and to the extent applicable, the CAIR designated representative, shall comply with all record keeping and reporting requirements under 40 CFR Part 75 and 6 NY CRR 243-2.1(e)(1).

2) The CAIR designated representative shall submit quarterly reports of 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.

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: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 30 FINAL 4) For CAIR NOx Ozone Season units that are also subject to the CAIR NOx Annual Trading Program or the Mercury Reduction Program (6 NYCRR 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 emissions data and heat input data.

5) 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 insuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that the monitoring data submitted were recorded in accordance with the applicable requirements of 6 NYCRR Part 243 and 40 CFR Part 75, including the quality assurance procedures and specifications;

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 40 CFR Part 75.

7) Whenever the owner or operator makes a replacement, modification or change in any certified continuous emission monitoring system under 6 NYCRR 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 or quality control requirements of 40 CFR 75.21 or Appendix B of Part 75, the owner or operator shall re-certify the monitoring system. 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 configuration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change. Examples of changes to a CEMS that require recertification include replacement of the analyzer, complete replacements of a CEMs, or change in location or orientation of the sampling probe site.

8) On an annual basis, the owner or operator shall submit, in the compliance certification, a statement whether he or she has complied with this condition.

Monitoring Frequency: CONTINUOUS Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 31 FINAL The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 32: CAIR General and Permit Requirments Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 244-1

Item 32.1:

(1) As of midnight of March 1, or midnight of the first business day thereafter if March 1 is not a business day, the owners and operators shall hold, in their compliance account, CAIR NOx allowances available for compliance deductions for the previuos control period (January 1 through December 31), in an amount not less than the total tons of nitrogen oxides emissions from all CAIR NOx units at the source during that control period. (244-1.6(c)(1) , 244-1.2(b)(5), 244-1.2(b)(36))

(2) A CAIR NOx allowance shall not be deducted, for compliance with the requirements under paragraph (2) of this section, for a control period in a calendar year before the year for which the CAIR NOx allowance was allocated. (244-1.6(c)(3))

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

(4) Unless otherwise provided, the owners and operators of the CAIR NOx source shall keep 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 244-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five year period unti l such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 244-2.4 changing the CAIR designated representative.

(ii) All emissions monitoring information, in accordance with 6NYCRR Part 244-8, provided that to the extent that 6NYCRR Part 244-8 provides for a three year period for recordkeeping, the three year period shall apply.

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

(iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR NOx Annual Trading Program or to demonstrate compliance with the requirements of the CAIR NOx Annual Trading Program. (244-1.6(e))Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 32 FINAL Condition 33: Designated CAIR Representative Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 244-2

Item 33.1: 1) Each Clean Air Interstate Rule (CAIR) NOx source shall have one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 244-2.2, with regard to all matters under the CAIR NOx Annual Trading Program. The CAIR designated representative shall be selected by an agreement binding on the owners and operators of the source and act in accordance with the certification statement in 6NYCRR Part 244-2.4(a)(4)(iv). Upon receipt by the Administrator of a complete certificate of representation under 6NYCRR Part 244-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOx source represented in all matters pertaining to the CAIR NOx Annual Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source. [244-2.1(a), (b) & (c)]

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

Condition 34: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 244-8

Item 34.1: The Compliance Certification activity will be performed for the Facility.

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

Item 34.2: Compliance Certification shall include the following monitoring:

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

(1) The owners and operators, and to the extentPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 33 FINAL applicable, the CAIR designated representative shall comply with all recordkeeping and reporting requirements in this condition, the applicable recordkeeping and reporting requirements under 40 CFR 75, and the requirements of 6NYCRR Part 244-2.1(e)(1).

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

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

(4) For CAIR NOx units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Ozone Season Trading Program, CAIR SO2 Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the NOx mass emission data, heat input data, and other information required by 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 244 and 40 CFR Part 75, including the quality assurance procedures and specifications; and

(ii) for a unit with add-on NOx emission controls and for all hours where NOx data are substituted in accordancePermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 34 FINAL with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate NOx emissions.

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

(7) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under 6NYCRR Part 244-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record NOx mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b) . Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system, and any excepted NOx monitoring system under appendix E to 40 CFR part 75, under 6NYCRR Part 244-8.1(a)(1) are subject to the recertification requirements in 40 CFR 75.20(g)(6). [224-8.2(d)(2)

Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL TOTAL Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 35: CAIR SO2 Trading Program General Provisions Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 245-1Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 35 FINAL Item 35.1: 1) As of midnight of March 1, or midnight of the first business day thereafter (if March 1 is not a business day) for a control period, the owners and operators of each Clean Air Interstate Rule (CAIR) SO2 source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO2 allowances available for compliance deductions for the control period (January 1 through December 31) not less than the tons of total sulfur dioxide emissions for the control period from all CAIR SO2 units at the source. A CAIR SO2 allowance shall not be deducted, for compliance with the requirements under paragraph (2) of this section, for a control period in a calendar year before the year for which the CAIR SO2 allowance was allocated. [(245-1.2(b)(5), 245-1.6(c)(1), 245-1.2(b)(36), 245-1.6(c)(3)]

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

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

4) Unless otherwise provided, the owners and operators of the CAIR SO2 source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator: [245-1.6(e)] (i) The certificate of representation under 6NYCRR Part 245-2.4 for the CAIR designated representative for the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under 6NYCRR Part 245-2.4 changing the CAIR designated representative. (ii) All emissions monitoring information, in accordance with 6NYCRR Part 245-8, provided that to the extent that 6NYCRR Part 245-8 provides for a three-year period for recordkeeping, the three-year period shall apply. (iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program. (iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR SO2 Trading Program or to demonstrate compliance with the requirements of the CAIR SO2 Trading Program.

Condition 36: Designated CAIR Representative Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 245-2

Item 36.1: 1) Each CAIR SO2 source shall have one and only one CAIR designated representative and may have one alternate representative, as per 6NYCRR Part 245-2.2, with regard to all mattersPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 36 FINAL under the CAIR SO2 Trading Program. The CAIR designated representative of the CAIR SO2 source shall be selected by an agreement binding on the owners and operators of the source and all CAIR SO2 units at the source and shall act in accordance with the certification statement in 6NYCRR Part 245-2.4(a)(4)(iv). Upon r eceipt by the Administrator of a complete certificate of representation under 6NYCRR Part 245-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR SO2 source represented and each CAIR SO2 unit at the source in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit. [245-2.1(a), (b) & (c)]

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

Condition 37: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 245-8

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

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

Item 37.2: Compliance Certification shall include the following monitoring:

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

1) The owners and operators, and to the extent applicable, the Clean Air Interstate Rule (CAIR) designated representative, of a CAIR SO2 unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in Subpart 6 NYCRR Part 245-8 and in 40 CFR Part 75, Subparts F and G. For purposes of complying with such requirements, the definitions in section 245-1.2 and 40 CFR 72.2 shall apply, and the terms "affected unit,"Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 37 FINAL "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR SO2 unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 245-1.2. The owner or operator of a unit that is not a CAIR SO2 unit but that is monitored under 40 CFR 75.16(b)(2) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR SO2 unit. [245-8.1]

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

3) The owner or operator shall meet the monitoring system certification and other requirements of section 245-8.1(a)(1) and (2) on or before the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under section 245-8.1(a)(1) on and after the following dates. [245-8.1(b)] (i) For the CAIR SO2 unit that commences commercial operation before July 1, 2008, by January 1, 2009. (ii) For the CAIR SO2 unit that commences commercial operation on or after July 1, 2008, by the later of the following dates: January 1, 2009; or 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.

4) Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under section 245-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record SO2 mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertifyPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 38 FINAL the monitoring system in accordance with 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include: replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system under section 245-8.1(a)(1) is subject to the recertification requirements in 40 CFR 75.20(g)(6). [245-8.2(d)(2)]

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

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

7) The owner or operator of a CAIR SO2 unit shall comply with requirements of 40 CFR 75.62 for monitoring plans. [245-8.5(b)]

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

9) The CAIR designated representative shall submit quarterly reports of the SO2 mass emissions data and heat input data for each CAIR SO2 unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with: [245-8.5(d)(1)] i) the calendar quarter covering January 1, 2009 through March 31, 2009 for a unit that commences commercial operation before July 1, 2008; or ii) for a unit that commences commercial operation onPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 39 FINAL or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 245-8.1(b), unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 through March 31, 2009.

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

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

12) The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that: [245-8.5(e)] i) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the quality assurance procedures and specifications; and ii) for a unit with add-on SO2 emission controls and for all hours where SO2 data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate SO2 emissions.

Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL TOTAL Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 2-5: Exemption from Part 249Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 40 FINAL Effective between the dates of 05/24/2012 and 05/23/2017

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

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

** ** Emission Unit Level  

Condition 38: Emission Point Definition By Emission Unit Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

Item 38.1(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00ASH

Emission Point: 0005A Height (ft.): 35 Diameter (in.): 6 NYTMN (km.): 4768.739 NYTME (km.): 401.624 Building: ASILO

Emission Point: 0005B Height (ft.): 35 Diameter (in.): 6 NYTMN (km.): 4768.739 NYTME (km.): 401.618 Building: ASILO

Item 38.2(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-00BLR

Emission Point: 00001 Height (ft.): 265 Diameter (in.): 156 NYTMN (km.): 4768.781 NYTME (km.): 401.618 Building: BAG HS

Item 38.3(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-0COAL

Emission Point: 0006A Height (ft.): 55 Diameter (in.): 6 NYTMN (km.): 4768.727 NYTME (km.): 401.666 Building: BLR HS

Emission Point: 0006B Height (ft.): 55 Diameter (in.): 6 NYTMN (km.): 4768.727 NYTME (km.): 401.669 Building: BLR HSPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 41 FINAL Item 38.4(From Mod 0): The following emission points are included in this permit for the cited Emission Unit:

Emission Unit: U-0COOL

Emission Point: 00002 Height (ft.): 50 Diameter (in.): 926 NYTMN (km.): 4768.69 NYTME (km.): 401.568

Condition 39: Process Definition By Emission Unit Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 201-6

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

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

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

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

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

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

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

Emission Source/Control: PAPHS - Process

Item 39.3(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

Emission Unit: U-00ASH Process: MIS Source Classification Code: 3-05-009-05 Process Description: Pneumatic transfer of flyash from the boiler gas passesPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 42 FINAL and the boiler baghouse hoppers to the ash storage silo, and transfer from the silo to trucks or rail cars for off-site disposal.

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

Emission Source/Control: ASHTR - Process

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

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

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

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

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

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

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

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

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

Emission Source/Control: 0SPDA - Control Control Type: DRY LIME INJECTIONPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 43 FINAL Item 39.6(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:

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

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

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

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

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

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

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

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

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

Item 39.8(From Mod 0): This permit authorizes the following regulated processes for the cited Emission Unit:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 44 FINAL Emission Unit: U-00BLR Process: OIL Source Classification Code: 1-02-005-01 Process Description: Any number of five boilers firing #2 fuel oil for boiler startup, low load operation and/or flame stabilization. The flue gas exhaust passes through a spray dry absorber and a fabric filter baghouse.

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

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

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

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

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

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

Emission Source/Control: UNLOD - Process

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

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

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

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

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 45 FINAL Emission Source/Control: CPILE - Process

Emission Source/Control: CRUSH - Process

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

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

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

Emission Source/Control: UNLOD - Process

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

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

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

Emission Source/Control: CLTWR - Process

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

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

Emission Source/Control: LIMHS - Process

Emission Source/Control: LSILO - Process

Condition 40: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 225-1.5 (b)Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 46 FINAL Item 40.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

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

Item 40.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: The facility has been granted an equivalent emission rate variance from the limitations in 6NYCRR 225-1. This condition applies regardless of the operational status of the spray dry adsorber (Source/Control 0SPDA), but does not waive the requirement to also comply with 40 CFR 60.14 when the spray dry adsorber is operational.

Emissions of sulfur dioxide emissions shall not exceed 1.20 pounds SO2 per million Btu heat input, on a 24 hour block basis. Compliance shall be determined using a continuous emissions monitor meeting the requirements of 40 CFR 60.13, 40 CFR Part 60 Appendix B and Appendix F. Daily average emissions shall be calculated using Equation 19-20a of EPA Method 19 (40 CFR Part 60, Appendix A).

On a calendar quarter basis, the owners or operators shall submit to the DEC a report of the periods of excess emissions. Such report shall state the date and time of when the period of excess emission begins and ends, the average magnitude during each clock hour in that period of excess emissions, the cause of the excess emissions and the corrective action. The report shall also include the results of quarterly and annual audits conducted on the continuous emission monitor system.

Manufacturer Name/Model Number: CSI Model SA-700 Upper Permit Limit: 1.20 pounds per million Btus Reference Test Method: 40 CFR Part 60, Appendix A, Method 19 Monitoring Frequency: CONTINUOUS Averaging Method: 24 HOUR BLOCK AVERAGE (ARITHMETIC MEAN) Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 41: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 47 FINAL Applicable Federal Requirement:6 NYCRR 227-1.2 (a) (3)

Item 41.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

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

Item 41.2: Compliance Certification shall include the following monitoring:

Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: No person shall cause or allow an emission into the outdoor atmosphere of particulates in excess of 0.10 pound per million Btu heat input from the boilers at this facility.

Compliance shall be determined through stack emission testing conducted in accordance with a protocol approved by the DEC. Testing shall be conducted once per permit term and at any other time when requested by the DEC. Results of testing shall be submitted to the DEC within 60 days after the completion of the tests. The procedures and time frames of 6 NYCRR 202-1 are applicable.

On a calendar-annual basis, the owner or operator shall inform the DEC whether he or she has complied with this condition.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.1 pounds per million Btus Reference Test Method: EPA Method 5 Monitoring Frequency: ONCE DURING THE TERM OF THE PERMIT Averaging Method: AVERAGING METHOD AS PER REFERENCE TEST METHOD INDICATED Reporting Requirements: ONCE / BATCH OR MONITORING OCCURRENCE

Condition 42: Testing, monitoring, and reporting requirements for very large boilers. Effective between the dates of 01/11/2010 and 05/23/2017

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

Item 42.1: This Condition applies to Emission Unit: U-00BLR

Item 42.2: The owner/operator shall measure NOx emissions with a continuous emissions monitoringPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 48 FINAL system (CEMS) as described in 6NYCRR 227-2.6(b).

Condition 43: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 231-2.6 (a) (7)

Item 43.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

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

Item 43.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Total NOx emissions from this emission unit shall not exceed 1552 tons/year as calculated on a monthly rolling basis. This limit was established pursuant to the creation of Emission Reduction Credits by the source

owner.

Manufacturer Name/Model Number: CSI Model 1600 Upper Permit Limit: 1552 tons per year Reference Test Method: NOX CEMS Monitoring Frequency: CONTINUOUS Averaging Method: ANNUAL MINIMUM ROLLED MONTHLY Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 2-6: Compliance Certification Effective between the dates of 05/24/2012 and 05/23/2017

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

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

Emission Unit: U-00BLR

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

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Coal fired boiler Unit 1 is subject to the requirementsPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 49 FINAL of Part 249, Best Available Retrofit Technology (BART). This unit will be permanently shut down by January 1, 2014. Faci lity shall notify the Department in writing within 30 days of the actual date of shutdown of unit 1, which must occur prior to January 1, 2014.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2013. Subsequent reports are due every 12 calendar month(s).

Condition 44: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federa l Requirement:6 NYCRR Subpart 257-1

Item 44.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

Item 44.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: The facility shall not operate more than one pulverizer per boiler upon startup, nor more than two pulverizers total on startup when the spray dry absorber is not operating.

The facility shall submit to the DEC on an annual calendar year basis whether it has complied with this requirement. Additionally, if the owner or operator has violated this condition, the owner or operator shall submit a report to the DEC within 30 days of such occurrence.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 45: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:40CFR 60.14, NSPS Subpart A

Item 45.1:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 50 FINAL The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

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

Item 45.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: This condition applies when the spray dry adsorber (Source/Control 0SPDA) is operational.

Sulfur dioxide emissions shall not exceed 1.10 pounds SO2 per million Btu heat input, on a 24 hour block basis. Compliance shall be determined using a continuous emissions monitor meeting the requirements of 40 CFR Part 60.13, 40 CFR Part 60 Appendix B and Appendix F. Daily average emissions shall be calculated using Equation 19-20a of EPA Method 19 (40 CFR Part 60, Appendix A).

On a calendar quarter basis, the owners or operators shall submit to the DEC a report of the periods of excess emissions. Such report shall state the date and time of when the period of excess emission begins and ends, the average magnitude during each clock hour in that period of excess emissions, the cause of the excess emissions and the corrective action. The report shall also include the results of quarterly and annual audits conducted on the continuous emission monitor system.

Manufacturer Name/Model Number: CSI Model SA-700 Parameter Monitored: SULFUR DIOXIDE Upper Permit Limit: 1.10 pounds per million Btus Reference Test Method: 40 CFR 60 App B/F Monitoring Frequency: CONTINUOUS Averaging Method: 24 HOUR DAILY BLOCK (ARITHMETIC AVERAGE) Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 46: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:40 CFR Part 64

Item 46.1:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 51 FINAL The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR

Item 46.2: Compliance Certification shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATE Monitoring Description: 1. The facility shall monitor and record stack opactity with a continuous opacty monitoring system (COMS). The COMS shall meet the performance specification of 40 CFR Part 60, Appendix B, Performance Specification 1 and 40 CFR 60.13.

2. On a calendar quarter basis, the owner or operator shall submit to the DEC a report identifying each six minute block period where the stack opacity exceeds 20 percent. The report shall state the date and time when the excess opacity occurred, the average magnitude of the opacity, the cause of the excess opacity (if known), and the corrective action taken to abate such emission. (Quarterly reporting required elsewhere in this permit will satisfy this requirement.)

3. If, in any calendar quarter, the duration of all six-minute periods of operation when the stack opacity was in excess of 20% exceeds 0.5% of the source operating time in that calendar quarter, the owner or operator shall develop and implement a Quality Improvement Plan. This plan shall include the elements specified in 40 CFR 64.8. The QIP shall be submitted to the DEC. After implementation of the QIP, The DEC may require to make reasonable changes to the QIP as provided in 40 CFR 64.8(d).

Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: COMS meeting 40 CFR Part 60 Monitoring Frequency: CONTINUOUS Averaging Method: 6-MINUTE AVERAGE (METHOD 9) Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 47: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 227-1.3Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 52 FINAL Item 47.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR Emission Point: 00001

Item 47.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: Stack opacity shall not exceed 20 percent (six minute average), except for one six-minute period per hour of not more than 27 percent opacity. Compliance with this standard may be determined by EPA Reference Method 9, Continuous Opacity Monitoring System (COMS) data, and/or any other credible evidence. The owner shall install, operate in accordance with manufacturer's instructions, and properly maintain, a COMS in the stack satisfying the crtieria in Appendix B of 40 CFR part 60.

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

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

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

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

(4) The total time in which the COMS are required to record data during the reporting period;

(5) The total number of exceedences and the duration of exceedences expressed as a percentage of the total time which the COMS are required to record data.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 53 FINAL Parameter Monitored: OPACITY Upper Permit Limit: 20 percent Reference Test Method: 40 CFR 60 APP B RM 9 Monitoring Frequency: CONTINUOUS Averaging Method: 6 MINUTE AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 60 days after the reporting period. The initial report is due 5/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 48: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 227-2.4 (a)

Item 48.1: The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR Emission Point: 00001

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

Item 48.2: Compliance Certification shall include the following monitoring:

Monitoring Type: CONTINUOUS EMISSION MONITORING (CEM) Monitoring Description: NOx emissions from very large, wall fired coal dry bottom boilers shall not exceed 0.45 lb/mmbtu (daily average during ozone season, 30 day rolling average during non ozone season). Compliance is determined using a NOx Continuous Emissions Monitoring System located in the boiler stack.

Manufacturer Name/Model Number: CSI Model 1600 Parameter Monitored: OXIDES OF NITROGEN Upper Permit Limit: 0.45 pounds per million Btus Reference Test Method: 40 CFR 60 App B/F Monitoring Frequency: CONTINUOUS Averaging Method: 24-HOUR AVERAGE Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 49: Compliance Certification Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Federal Requirement:6 NYCRR 200.7

Item 49.1:Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 54 FINAL The Compliance Certification activity will be performed for:

Emission Unit: U-00BLR Emission Point: 00001 Process: COA Emission Source: 0BAGH

Item 49.2: Compliance Certification shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: This spray dry adsorber and fabric filter controlling emissions from Boilers #1, #2, #3, #4 and #5 shall be operated in accordance with the Scrubber Operating Plan submitted to and approved by the DEC. The facility shall maintain a log of all maintenance performed on the spray dry adsorber and fabric filter, including parts replacement, bag changes, routine cleaning and all other preventive maintenance. The facility shall ensure that all manufacturer-recommended maintenance procedures are performed.

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 7/30/2010. Subsequent reports are due every 6 calendar month(s).Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 55 FINAL STATE ONLY ENFORCEABLE CONDITIONS ** ** Fac ility Level  

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

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

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

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

Condition 50: Contaminant List Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:ECL 19-0301

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

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

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 56 FINAL CAS No: 007446-09-5 Name: SULFUR DIOXIDE

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

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

Condition 51: Unavoidable noncompliance and violations Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR 201-1.4

Item 51.1: At the discretion of the commissioner a violation of any applicable emission standard for necessary scheduled equipment maintenance, start-up/shutdown conditions and malfunctions or upsets may be excused if such violations are unavoidable. The following actions and recordkeeping and reporting requirements must be adhered to in such circumstances.

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

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

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

(d) In the event of maintenance, start-up/shutdown or malfunction conditions whichPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 57 FINAL 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 52: Air pollution prohibited Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR 211.2

Item 52.1: 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 2-7: Visible Emissions Limited Effective between the dates of 05/24/2012 and 05/23/2017

Applicable State Requirement:6 NYCRR 211.2

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

Condition 53: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Stat e Requirement:6 NYCRR Subpart 242-1

Item 53.1: The Compliance Demonstration activity will be performed for the Facility.

Item 53.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1. The owners and operators and, to the extent applicable, the CO2 authorized account representative of each CO2 budget source and each CO2 budget unit at the source shall hold CO2 allowances available for compliancePermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 58 FINAL deductions under Section 242-6.5, as of the CO2 allowance transfer deadline, in the source's compliance account in an amount not less than the total CO2 emissions for the control period from all CO2 budget units at the source, as determined in accordance with Subparts 242-6 and 242-8.

2. A CO2 allowance shall not be deducted, in order to comply with Item 1 above, for a control period that ends prior to the allocation year for which the CO2 allowance was allocated. A CO2 offset allowance shall not be deducted, in order to comply with Item 1 above, beyond the applicable percent limitations set out in 6 NYCRR 242-6.5(a)(3).

The owner or operator shall, on a calendar year basis, submit to the DEC a certification stating whether he or she has complied with this requirement.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 54: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Stat e Requirement:6 NYCRR Subpart 242-4

Item 54.1: The Compliance Demonstration activity will be performed for the Facility.

Regulated Contaminant(s): CAS No: 000124-38-9 CARBON DIOXIDE

Item 54.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Annual Compliance Certification Report:

(a) For each control period in which a CO2 budget source is subject to the CO2 requirements of subdivision 242-1.5(c) of this Part, CO2 authorized account representative of the source shall submit to the department by March 1st following the relevant control period, a compliance certification report.

(b) The compliance certification report shall include thePermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 59 FINAL following elements: (1) identification of the source and each CO2 budget unit at the source; (2) as an option, the serial numbers of the CO2 allowances that are to be deducted from the source's compliance account under section 242-6.5 of this Part for the control period, including the serial numbers of any CO2 offset allowances that are to be deducted subject to the limitations of section 242-6.5(a)(3) of this Part; and (3) the compliance certification under subdivision (c) of this section (below).

(c) In the compliance certification report the CO2 authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the CO2 budget units at the source in compliance with the CO2 Budget Trading Program, whether the source and each CO2 budget unit at the source for which the compliance certification is submitted was operated during the calendar years covered by the report in compliance with the requirements of the CO2 Budget Trading Program, including: (1) whether the source was operated in compliance with the CO2 requirements of section 242-1.5(c) of this Part; (2) whether the monitoring plan applicable to each unit at the source has been maintained to reflect the actual operation and monitoring of the unit, and contains all information necessary to attribute CO2 emissions to the unit, in accordance with Subpart 242-8 of this Part; (3) whether all the CO2 emissions from the units at the source 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 242-8 of this Part. If conditional 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 have been made; (4) whether the facts that form the basis for certification under Subpart 242-8 of each monitor at each unit at the source, or for using an excepted monitoring method or alternative monitoring method approved under Subpart 242-8 of this Part, if any, have changed; and (5) if a change is required to be reported under paragraph (c)(4) 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.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 60 FINAL Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: MARCH 1

Condition 55: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable Stat e Requirement:6 NYCRR Subpart 242-8

Item 55.1: The Compliance Demonstration activity will be performed for the Facility.

Regulated Contaminant(s): CAS No: 000124-38-9 CARBON DIOXIDE

Item 55.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: Recordkeeping and Reporting (6NYCRR Part 242-8.5)

(a) General provisions. The CO2 authorized account representative shall comply with all recordkeeping and reporting requirements in this section, the applicable record keeping and reporting requirements under 40 CFR 75.73 and with the requirements of section 242-2.1(e) of this Part.

(b) Monitoring plans. The owner or operator of a CO2 budget unit shall submit a monitoring plan in the manner prescribed in 40 CFR 75.62.

(c) Certification applications. The CO2 authorized account representative shall submit an application to the department within 45 days after completing all CO2 monitoring system initial certification or recertification tests required under section 242-8.2 of this Subpart including the information required under 40 CFR 75.63 and 40 CFR 75.53(e) and (f).

(d) Quarterly reports. The CO2 authorized account representative shall submit quarterly reports, as follows: (1) The CO2 authorized account representative shall report the CO2 mass emissions data and heat input data for the CO2 budget unit, in an electronic format prescribed by the administrator unless otherwise prescribed by the department for each calendar quarter. (2) The CO2 authorized account representative shall submit each quarterly report to the department or its agent within 30 days following the end of the calendarPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 61 FINAL quarter covered by the report. Quarterly reports shall be submitted in the manner specified in subpart H of 40 CFR part 75 and 40 CFR 75.64. Quarterly reports shall be submitted for each CO2 budget unit (or group of units using a common stack), and shall include all of the data and information required in subpart G of 40 CFR part 75, except for opacity, NOx, and SO2 provisions. (3) The CO2 authorized account representative shall submit to the department or its agent a compliance certification 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 this Subpart and 40 CFR part 75, including the quality assurance procedures and specifications; (ii) for a unit with add-on CO2 emissions controls and for all hours where data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emissions controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B of 40 CFR part 75 and the substitute values do not systematically underestimate CO2 emissions; and (iii) the CO2 concentration values substituted for missing data under Subpart D of 40 CFR part 75 do not systematically underestimate CO2 emissions.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

Condition 56: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR Part 246

Item 56.1: The Compliance Demonstration activity will be performed for the Facility.

Item 56.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: RECORD KEEPING/MAINTENANCE PROCEDURES Monitoring Description: 1. The owner or operator shall not cause or allow emissions of mercury in excess of 21.0 pounds per 12 month period, rolled monthly, from January 1, 2010 to DecemberPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 62 FINAL 31, 2014.

2. Effective January 1, 2015, the owner or operator shall not cause or allow emissions of mercury in excess of 0.6 pounds per trillion Btu. Compliance with this emission limit shall be determined on a 30 day rolling period, rolled daily.

3. The owner or operator shall comply with the monitoring, record keeping and reporting requirements of 40 CFR Part 75, Subpart I and 6 NYCRR 246.

4. Mercury emissions shall be monitored pursuant to 40 CFR 75.81(b)-(e), provided annual emissions are less than or equal to 464 ounces. The owner or operator shall conduct either annual or semi-annual testing as described in 40 CFR 75.81(d). If, at the end of any calendar year, the cumulative annual mercury mass emissions exceed 464 ounces, the owner or operator shall install, certify, operate and maintain a mercury concentration monitoring system or a sorbent trap monitoring system no later than 180 days after the end of that calendar year.

5. Hourly emissions of mercury shall be computed according to 40 CFR Part 75, Appendix F.

6. Emission control equipment parametric data must be recorded in accordance with 40 CFR 75.58(b)(3)(i).

7. The owner or operator must submit quarterly reports in a format prescribed by the DEC and the Administrator no later than 30 days after the end of the quarter and in the manner specified in 40 CFR 75.84(f). In the quarterly submission the owner or operator must certify that the data were submitted in accordance with 6 NYCRR 246 and 40 CFR Part 75, that missing data were substituted in accordance with 40 CFR 75.34(a)(1).

8. No owner or operator shall use any alternative monitoring system without written approval from the DEC; allow the discharge of mercury emissions without accounting for such emissions; disrupt the operation of a mercury continuous monitoring system (except for periods of calibration, quality assurance testing, maintenance or recertification; or discontinue the use of a monitoring system unless another system has been approved by the DEC or the EPA.

Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Reporting Requirements: QUARTERLY (CALENDAR) Reports due 30 days after the reporting period.Permit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 63 FINAL The initial report is due 4/30/2010. Subsequent reports are due every 3 calendar month(s).

** ** Emission Unit Level ****

Condition 57: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR 617.11 (d)

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

Emission Unit: U-00BLR

Item 57.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: WORK PRACTICE INVOLVING SPECIFIC OPERATIONS Monitoring Description: Total coal fired at the facility shall not exceed 438,000 tons/year on a calendar year basis.

Work Practice Type: PROCESS MATERIAL THRUPUT Process Material: BITUMINOUS COAL Upper Permit Limit: 438,000 tons per year Monitoring Frequency: AS REQUIRED - SEE PERMIT MONITORING DESCRIPTION Averaging Method: CALENDAR YEAR AVERAGE Reporting Requirements: ANNUALLY (CALENDAR) Reports due 30 days after the reporting period. The initial report is due 1/30/2011. Subsequent reports are due every 12 calendar month(s).

Condition 58: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR 617.11 (d)

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

Emission Unit: U-00BLR

Item 58.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: MONITORING OF PROCESS OR CONTROL DEVICE PARAMETERS AS SURROGATEPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 64 FINAL Monitoring Description: Total heat input to the facility shall not exceed 1,250 mmBtu/hour on a one hour block basis. Compliance shall be based upon monitoring of steam flow and applying the most current measured boiler efficiency..

Parameter Monitored: HEAT INPUT Upper Permit Limit: 1,250 million Btu per hour Monitoring Frequency: CONTINUOUS Averaging Method: 1-HOUR AVERAGE Reporting Requirements: UPON REQUEST BY REGULATORY AGENCY

Condition 59: Compliance Demonstration Effective between the dates of 01/11/2010 and 05/23/2017

Applicable State Requirement:6 NYCRR 617.11 (d)

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

Emission Unit: U-00BLR

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

Item 59.2: Compliance Demonstration shall include the following monitoring:

Monitoring Type: INTERMITTENT EMISSION TESTING Monitoring Description: Particulate emissions shall not exceed 0.05 lb/mmBtu. Compliance shall be demonstrated by stack testing performed at least once during the term of the permit, and upon request by the Department.

Parameter Monitored: PARTICULATES Upper Permit Limit: 0.05 pounds per million Btus Reference Test Method: EPA RM 5 Monitoring Frequency: ONCE DURING THE TERM OF THE PERMIT Averaging Method: AVERAGING METHOD AS PER REFERENCE TEST METHOD INDICATED Reporting Requirements: UPON REQUEST BY REGULATORY AGENCYPermit ID: 7-3132-00052/00020 Facility DEC ID: 7313200052

Air Pollution Control Permit Conditions Renewal 1/Mod 2/Active Page 65 FINAL