STATEMENT OF BASIS. For the issuance of Draft Air Permit # 1567-AOP-R1 AFIN:

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1 STATEMENT OF BASIS For the issuance of Draft Air Permit # 1567-AOP-R1 1. PERMITTING AUTHORITY: Arkansas Department of Environmental Quality 5301 Northshore Drive North Little Rock, Arkansas APPLICANT: Price Lumber Company 218 Midway Monticello, Arkansas PERMIT WRITER: Patty Campbell, P.E. 4. NAICS DESCRIPTION AND CODE: NAICS Description: Sawmills NAICS Code: SUBMITTALS: Date of Application 7/10/2014 9/19/ /10/2014 Type of Application (New, Renewal, Mod, DM/Min Mod, or AA) Modification (Change from MS to T5) Short Description of Any Changes That Would Be Considered New or Modified Emissions Increase the sawmill production limits for SN-15 through SN-29 ADEQ requested direct-fired Kilns SN-22, 23 use 3.8 lb VOC / MBF emission factor. SN-28 & 29 emissions not listed on ERTs. PM 10 's not calculated. Emissions modified. 6. REVIEWER S NOTES: Price Lumber Company (Price Lumber) is a lumber and sawmill located at 218 Midway Monticello, Drew County, Arkansas This permitting modification is necessary to: 1. Change from a minor source to a Title V operating air permit; 2. Revise throughput and emissions for SN-15; 3. Update green wood PM/PM 10 emission factors for SN-09 through SN-12, SN-14 through SN-21, SN-24, and SN-25;

2 Page 2 of Update PM/PM 10 emission factors and prevent fugitive dust (PM) emissions from extending beyond the property boundary, SN-26 and SN-27; 5. Require continuous use of cyclones (SN-20 and SN-24) when contiguous inline equipment is operating, SC #13; 6. Update PM/PM 10, VOC, and HAP emission factors and increase combined log throughput for Dry Kilns #1 and #2, SN-22 and SN-23; 7. Increase combined sawdust throughput and emissions from Direct-fired Burners SN-28 and SN-29 for Dry Kilns #1 & #2; 8. Permit Emergency Generator SN-30, restrict to 500 total hours per calendar year (except during an emergency), and clarify applicable requirements of 40 CFR 63 Subpart ZZZZ (meet the requirements in NESHAP Subpart JJJJ) and 40 CFR 60 Subpart JJJJ (no provisions apply); and 9. Specify NESHAP Subpart DDDD initial notification is only requirement for kilns. Total annual emission changes associated with this modification are: tpy (tons per year) PM, tpy PM 10, +5.3 tpy SO 2, tpy VOC, tpy CO, tpy NO X, tpy Acetaldehyde, tpy Acrolein, tpy Benzene, tpy Formaldehyde, tpy Methanol, tpy Hydrogen Chloride, tpy Total HAP, and tpy Acetone. 7. COMPLIANCE STATUS: The following summarizes the current compliance of the facility including active/pending enforcement actions and recent compliance activities and issues. There are no active or pending air enforcement issues at this time. 8. PSD APPLICABILITY: a) Did the facility undergo PSD review in this permit (i.e., BACT, Modeling, etc.)? N b) Is the facility categorized as a major source for PSD? N Single pollutant 100 tpy and on the list of 28 or single pollutant 250 tpy and not on list If yes, explain why this permit modification is not PSD. 9. SOURCE AND POLLUTANT SPECIFIC REGULATORY APPLICABILITY: Source Pollutant 22 & 23 HAPs 30 HAPs 30 VOC, CO, & NO X Regulation (NSPS, NESHAP or PSD) NESHAP Subpart DDDD (initial notification is only requirement) NESHAP Subpart ZZZZ (meet requirements of NSPS Subpart JJJJ) NSPS Subpart JJJJ (no requirements)

3 Page 3 of EMISSION CHANGES AND FEE CALCULATION: See emission change and fee calculation spreadsheet in Appendix A. 11. AMBIENT AIR EVALUATIONS: a) Reserved: b) Non-Criteria Pollutants: The non-criteria pollutants listed below were evaluated. Based on Department procedures for review of non-criteria pollutants, emissions of all other non-criteria pollutants are below thresholds of concern. 1 st Tier Screening (PAER) Estimated hourly emissions from the following sources were compared to the Presumptively Acceptable Emission Rate (PAER) for each compound. The Department has deemed the PAER to be the product, in lb/hr, of 0.11 and the Threshold Limit Value (mg/m 3 ), as listed by the American Conference of Governmental Industrial Hygienists (ACGIH).

4 Page 4 of 10 HAP Relative Toxicity Chart Total HAP Emission Rate (lb/hr) SN-22 SN-23 SN-28 SN-29 Total HAP Emission Rate * 4.4 (lb/hr) Relative Toxicity Level Is HAP Reportable (/No) Acetaldehyde Acrolein Benzene BDL BDL Formaldehyde M, P-Xylene BDL BDL - - BDL No Methanol O-Xylene BDL BDL No Phenol BDL BDL Propionaldehyde No Styrene BDL BDL Toluene BDL BDL No Acetophenone - - BDL BDL BDL No Bis(Z-ethylhexyl) Phthalate Carbon tetrachloride No No Chlorine Acute Chlorobenzene No Chloroform No Ethylbenzene No Naphthalene No 4-Nitrophenol No Pentachlorophenol 2,4,6- Trichlorophenol No No Vinyl Chloride No

5 Page 5 of 10 Pollutant TLV (mg/m 3 ) PAER (lb/hr) = 0.11 TLV Proposed lb/hr Pass? Acetaldehyde Acetone Acrolein No Benzene No 1 Formaldehyde No 1 HCl No 1 Methanol Phenol Styrene Based on Department procedures for review of non-criteria pollutants, Benzene, Formaldehyde, and HCl emissions are below thresholds of concern because ADEQ has now limited the implementation or use of the strategy to any single NCAP with emissions equal or greater than 10 tons per year or any NCAP with a TLV less than 1 mg/m3, regardless of emission rates. 2 Prior lb/hr Acrolein modeling in Permit #1567-AR-5, issued July 19, 2010, passed PAIL, see below. PAIL far exceeded Acrolein model below, further modeling unnecessary. 2 nd Tier Screening (PAIL) AERMOD air dispersion modeling was performed on the estimated hourly emissions from the following sources, in order to predict ambient concentrations beyond the property boundary. The Presumptively Acceptable Impact Level (PAIL) for each compound has been deemed by the Department to be one one-hundredth of the Threshold Limit Value as listed by the ACGIH. Pollutant PAIL (μg/m 3 ) = 1/100 of Threshold Limit Value Modeled Concentration (μg/m 3 ) Pass? Acrolein * * Modeled concentrations are H1H value, LR Met Data 2011 run, 1-year met for HAPs, 24 Hrs, no background, Terrain Data NED 1 (30m) lb/hr Acrolein modeled for Permit #1567- AR-5, issued 7/19/10. c) H2S Modeling: Not applicable. There are no H 2 S emissions.

6 Page 6 of CALCULATIONS: SN 09 & 15 Debarker 10 & 17 Green Bark Loading 11 & 18 Green Chip Storage 12 & 19 Green Chip Loading 14 & 16 Green Bark Storage 20 & 24 Dry Shavings Storage 21 & 25 Dry Shavings Loading Emission Factor Source (AP-42, testing) AP ADEQ Memo dated 8/22/03 Emission Factor (lb/ton, lb/hr, etc.) PM: PM 10 : PM: PM 10 : PM: PM 10 : PM: PM 10 : PM: PM 10 : PM: PM 10 : PM: PM 10 : Control Eq Control Eq Eff Cyclone 98% Comments 8/22/2003 Memo Subject from Charles Hurt to Tom Rheaume: PM and PM 10 emissions for bins & load-outs of wood chips, wood shaving, and bark Annual SN Throughput (tons) , & 14 47, & , , & 17 45, & , & 21 5,980 / 7, & 25 1,324

7 Page 7 of 10 SN Emission Factor Source (AP-42, testing) Emission Factor (lb/ton, lb/hr, etc.) of dried Lumber Organic PM: Inorganic PM: Control Eq Control Eq Eff Comments 8,760 hrs/yr 2 kilns limited by throughput 22 & 23 Natural wood pollutants from drying Pine Lumber 26 Paved VMT 27 Unpaved VMT PM & PM 10 AP-42 Table (outof-print) VOC 1 & HAP 1 NCASI Technical Bulletin No. 845 for Direct fired Kiln(May 2002) Southern Yellow Pine NCASI National Council for Air and Steam Improvement SN-26 AP Eq 1 (1/11) SN-27 AP Eq 1a (11/06) Lumber Drying Kilns Max Thruput = 107,667 MBF lumber/ 12 rolling mos. For SN-22 & 23 combined Lb/MBF VOC (as C) = Formaldehyde = Methanol = Acetaldehyde: Acetone: Acrolein: Hourly rate based on 24- hr drying cycle 1 Formaldehyde and methanol are naturally occurring HAPs in drying wood Above EF are higher than Unilin ( ) Kilns (SN-17) for red oak as follows: Lb/mbf VOC = Formaldehyde = Methanol = sl = 7.4 g/m 2 c = lb/vmt PM k = PM 10 k = lb/vmt (particle size multiplier) P = 105 days wet days N = 365 total days no watering truck used Drying Kilns #1 (SN-22) & = 67,292 MBF/12 rolling mos. = 7.68 MBF/hr x 3.8 lb VOC/MBF = 29.2 lb VOC/hr Drying Kilns #2 (SN-23) = 40,375 MBF/12 rolling mos. = 4.61 MBF/hr x x 3.8 lb VOC/MBF = lb VOC/hr = MBF/hr = lb VOC/hr 67, ,375 = 107,667MBF/yr x 3.8 lb/voc/mbf x ton/2000 lb = ton VOC/yr Formaldehyde lb/mbf x 107,667 MBF/yr = 11,089.7 /2000 = tpy lb/mbf x MBF/hr = lb/hr Methanol lb/mbf x 107,667 MBF/yr = 17,334.4/2000 = tpy lb/mbf x MBF/hr = lb/hr No single Hap greater than 8.67 tpy 25,112 vehicles per yr (Vh/yr) VEH weight AVE = (W) Paved Mi full/mt = mi Unpaved Mi full/mt = AP Paved Eq 1: E ext = k(sl/2) 0.91 * (W) 1.02 * AP Unpaved Eq 1a: E = K (S/12) a * (W/3) b

8 Page 8 of 10 SN 28 & Emergency Generator Emission Factor Source (AP-42, testing) AP-42 (9/03) Table for PM/PM 10 Table for SO 2, CO, NO X AP-42 Table for VOC HAPs various from AP-42 Table Michigan DEQ & AP-42 Table (7/00) uncontrolled 4SRB RICE Emission Factor (lb/ton, lb/hr, etc.) lb/mmbtu PM: 0.33 PM 10 : 0.29 SO 2 : VOC: CO: 0.60 NO X : 0.22 Acetaldehyde: Acetone: Acrolein: Benzene: Formaldehyde: HCl: Phenol: Styrene: lb/mmbtu NO x : 2.27 CO: 3.72 VOC: 2.96E-02 PM: 0.33 PM 10 : 9.50E E-03 SO 2 : 5.88E-04 Formaldehyde: 5.28E-02 Acrolein: 5.14E-03 Control Eq Control Eq Eff Comments Wood-fired Burners for Dry Kilns #1 & #2 (Combusts Sawdust) 79,333 tons/yr wet sawdust combined (MC >20%) No bark burned. Heat Value Green Sawdust: 4,250 BTU/lb (79,300 tons sawdust/yr) (2000 lb/ton) x (4250 BTU/lb) / 10 6 = 674,330 MMBTU/yr Sawdust Emissions based on 500 Total Hours (emergency and non-emergency) MMBtu/hr 128 HP 13. TESTING REQUIREMENTS: There is no testing required. 14. MONITORING OR CEMS: There are no CEMS or other monitoring equipment required. 15. RECORDKEEPING REQUIREMENTS: The following are items (such as throughput, fuel usage, VOC content, etc.) that must be tracked and recorded. SN Recorded Item Permit Limit Frequency 09 Log Weight Processed - Pulp Wood Debarked 347,647 Tons Report (Y/N)

9 Page 9 of 10 SN Recorded Item Permit Limit Frequency 10 & & & & & & 23 Kilns 22 & & 25 Green Bark Loading and Storage Green Chips Loading and Storage Log Weight Processed - Pine Logs Debarked Green Bark Loading and Storage Green Chips Loading and Storage Planer Shavings & Sawdust Loading and Storage Lumber Kiln-dried Throughput NESHAP Subpart DDDD Chip Trim Ends loading and Storage 26 & 27 Road Dust 28 & 29 Burners Facility Sawdust/Wood Scrap combusted in Burners Total Hours (emergency and nonemergency) on nonresettable hour meter Emergency operation in excess of 500 hours Identify RICEs subject to NSPS Subpart JJJJ Complete ADEQ s ICE Summary Form Permit Renewal 47,647 Tons 300,000 Tons 620,000 Tons 45,333 Tons 268,667 Tons 7,284 Tons 107,667 MBF Initial Notification Only 1,324 Tons Keep dust (PM) from extending beyond the property boundary 79,333 Tons 500 Total Hours per calendar year One-time, complete As occurs Report (Y/N) No No No limit As occurs Identify specific make, model, engine family, serial number, model year, maximum engine power, engine displacement and year constructed Permit is valid for 5 years, beginning on date permit becomes effective and ends five (5) years later, GP #3 On-going Every 5 yrs. Submit at least 6 mos before expiration No

10 Page 10 of OPACITY: SN Opacity Justification for limit Compliance Mechanism 09 through 12, 14 through 19, 21 & 25 20% and A.C.A. Weekly Observation 20 & 24 (cyclones) 10% and A.C.A. Weekly Observation 22, 23, 28, & 29 20% and A.C.A. Weekly Observation 26 & 27 (offsite) 0% and A.C.A. ADEQ Observation 17. DELETED CONDITIONS: There were no deleted conditions. 18. GROUP A INSIGNIFICANT ACTIVITIES: Source Name IA PM/ PM 10 Emissions (tpy) SO 2 VOC CO NO x HAPs S Tot 3000 Gallon Diesel Fuel Storage Tank A Gallon Gasoline Storage Tank at Major Source of HAPs 19. VOIDED, SUPERSEDED, OR SUBSUMED PERMITS: A List all active permits voided/superseded/subsumed by the issuance of this permit. Permit # 1567-AR-5

11 APPENDIX A EMISSION CHANGES AND FEE CALCULATION

12 Facility Name: Price Lumber Company Permit Number: 1567-AOP-R1 Fee Calculation for Major Source Revised $/ton factor Chargeable Emissions (tpy) Permit Type Modification Permit Fee $ Minor Modification Fee $ 500 Minimum Modification Fee $ 1000 Renewal with Minor Modification 500 $ Check if Facility Holds an Active Minor Source or Minor Source General Permit If Hold Active Permit, Amt of Last Annual Air Permit Invoice $ 0 Total Permit Fee Chargeable Emissions (tpy) Initial Title V Permit Fee Chargeable Emissions (tpy) HAPs not included in VOC or PM: Air Contaminants: Chlorine, Hydrazine, HCl, HF, Methyl Chloroform, Methylene Chloride, Phosphine, Tetrachloroethylene, Titanium Tetrachloride All air contaminants are chargeable unless they are included in other totals (e.g., H2SO4 in condensible PM, H2S in TRS, etc.) Pollutant (tpy) Check if Chargeable Emission Old Permit New Permit Change in Emissions Permit Fee Chargeable Emissions Annual Chargeable Emissions PM PM SO VOC CO NO X Single HAP Total HAPs HCl Acetone PC