Loading...
HomeMy WebLinkAboutDAQ-2024-007472 DAQE-AN103030033-24 {{$d1 }} Paul Pederson Ash Grove Cement Company P.O. Box 38069 Leamington, UT 84638 cody.watkins@ashgrove.com Dear Mr. Pederson: Re: Approval Order: Modification of Approval Order DAQE-AN103030030-22 to Install New Emergency Generators and Operations Update Project Number: N103030033 The attached Approval Order (AO) is issued pursuant to the Notice of Intent (NOI) received on June 13, 2023. Ash Grove Cement Company must comply with the requirements of this AO, all applicable state requirements (R307), and Federal Standards. The project engineer for this action is John Jenks, who can be contacted at (385) 306-6510 or jjenks@utah.gov. Future correspondence on this AO should include the engineer's name as well as the DAQE number shown on the upper right-hand corner of this letter. No public comments were received on this action. Sincerely, {{$s }} Bryce C. Bird Director BCB:JB:jg cc: Central Utah Health Department DJ Law, EPA Region 8 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801) 536-4099 • T.D.D. (801) 536-4414 www.deq.utah.gov Printed on 100% recycled paper State of Utah SPENCER J. COX Governor DEIDRE HENDERSON Lieutenant Governor Department of Environmental Quality Kimberly D. Shelley Executive Director DIVISION OF AIR QUALITY Bryce C. Bird Director March 21, 2024 STATE OF UTAH Department of Environmental Quality Division of Air Quality {{#s=Sig_es_:signer1:signature}} {{#d1=date1_es_:signer1:date:format(date, "mmmm d, yyyy")}} {{#d2=date1_es_:signer1:date:format(date, "mmmm d, yyyy"):align(center)}} APPROVAL ORDER DAQE-AN103030033-24 Modification of Approval Order DAQE-AN103030030-22 to Install New Emergency Generators and Operations Update Prepared By John Jenks, Engineer (385) 306-6510 jjenks@utah.gov Issued to Ash Grove Cement Company - Leamington Cement Plant Issued On {{$d2 }} Issued By {{$s }} Bryce C. Bird Director Division of Air Quality March 21, 2024 TABLE OF CONTENTS TITLE/SIGNATURE PAGE ....................................................................................................... 1 GENERAL INFORMATION ...................................................................................................... 3 CONTACT/LOCATION INFORMATION ............................................................................... 3 SOURCE INFORMATION ........................................................................................................ 3 General Description ................................................................................................................ 3 NSR Classification .................................................................................................................. 3 Source Classification .............................................................................................................. 3 Applicable Federal Standards ................................................................................................. 3 Project Description.................................................................................................................. 4 SUMMARY OF EMISSIONS .................................................................................................... 4 SECTION I: GENERAL PROVISIONS .................................................................................... 5 SECTION II: PERMITTED EQUIPMENT .............................................................................. 5 SECTION II: SPECIAL PROVISIONS ................................................................................... 10 PERMIT HISTORY ................................................................................................................... 19 ACRONYMS ............................................................................................................................... 20 DAQE-AN103030033-24 Page 3 GENERAL INFORMATION CONTACT/LOCATION INFORMATION Owner Name Source Name Ash Grove Cement Company Ash Grove Cement Company - Leamington Cement Plant Mailing Address Physical Address P.O. Box 38069 Highway 132 Leamington, UT 84638 Leamington, UT 84638 Source Contact UTM Coordinates Name: Cody Watkins 397000 m Easting Phone: (385) 225-0615 4380100 m Northing Email: cody.watkins@ashgrove.com Datum NAD83 UTM Zone 12 SIC code 3241 (Cement, Hydraulic) SOURCE INFORMATION General Description Ash Grove Cement Company (Ash Grove) operates the Leamington cement manufacturing plant in Millard County, Utah. Cement is produced when inorganic raw materials, primarily limestone (quarried on site), are correctly proportioned, ground, and mixed, and then fed into a rotating kiln. The kiln alters the materials and recombines them into small stones called cement clinker. The clinker is cooled and ground with gypsum and additional limestone into a fine powdered cement. The final product is stored on site for later shipping. The major sources of air emissions are from the combustion of fuels for the kiln operation, from the kiln, and from the clinker cooling process. The Leamington cement plant is a major source for emissions of PM2.5, PM10, NOx, SO2, CO, HAPs, and GHG. NSR Classification Minor Modification at Major Source Source Classification Located in Attainment Area Millard County Airs Source Size: A Applicable Federal Standards NSPS (Part 60), A: General Provisions NSPS (Part 60), Y: Standards of Performance for Coal Preparation and Processing Plants NSPS (Part 60), OOO: Standards of Performance for Nonmetallic Mineral Processing Plants NSPS (Part 60), IIII: Standards of Performance for Stationary Compression Ignition Internal DAQE-AN103030033-24 Page 4 Combustion Engines NSPS (Part 60), JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines MACT (Part 63), A: General Provisions MACT (Part 63), LLL: National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry MACT (Part 63), ZZZZ: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines Title V (Part 70) Major Source Project Description On June 13, 2023, Ash Grove submitted a NOI for the Leamington Plant to obtain an updated AO. Ash Grove is proposing to install two (2) natural gas emergency generators and to replace its emergency shipping generator. Two (2) stockpiles will also be added under this project, as will associated increases in truck traffic and material handling operations. This project will be classified as a minor modification of the Leamington Plant's existing AO. In addition, Ash Grove has requested that this project be reviewed as an enhanced AO for incorporation into its Title V permit. SUMMARY OF EMISSIONS The emissions listed below are an estimate of the total potential emissions from the source. Some rounding of emissions is possible. Criteria Pollutant Change (TPY) Total (TPY) CO2 Equivalent 0 1.00 Carbon Monoxide 0.13 13045.00 Lead Compounds 0 0.04 Nitrogen Dioxide -0.35 1351.44 Particulate Matter - PM10 1.57 236.36 Particulate Matter - PM2.5 0.39 230.74 Sulfur Dioxide -0.10 192.40 Volatile Organic Compounds 0 59.38 Hazardous Air Pollutant Change (lbs/yr) Total (lbs/yr) Benzene (Including Benzene From Gasoline) (CAS #71432) 0 1500 Beryllium (TSP) (CAS #7440417) 0 1 Chromium Compounds (CAS #CMJ500) 0 135 Dioxin/Furan Toxic Equivalents: 2,3,7, 8-Tetrachlorodibenzo-P-Dioxin (CAS #1746016) 0 2 Formaldehyde (CAS #50000) 0 18755 Hydrochloric Acid (Hydrogen Chloride) (CAS #7647010) 0 41640 Lead Compounds (CAS #LCT000) 0 72 Mercury (TSP) (CAS #7439976) 0 53 Naphthalene (CAS #91203) 0 1600 Selenium (TSP) (CAS #7782492) 0 200 Change (TPY) Total (TPY) Total HAPs 0 31.98 DAQE-AN103030033-24 Page 5 SECTION I: GENERAL PROVISIONS I.1 All definitions, terms, abbreviations, and references used in this AO conform to those used in the UAC R307 and 40 CFR. Unless noted otherwise, references cited in these AO conditions refer to those rules. [R307-101] I.2 The limits set forth in this AO shall not be exceeded without prior approval. [R307-401] I.3 Modifications to the equipment or processes approved by this AO that could affect the emissions covered by this AO must be reviewed and approved. [R307-401-1] I.4 All records referenced in this AO or in other applicable rules, which are required to be kept by the owner/operator, shall be made available to the Director or Director's representative upon request, and the records shall include the five-year period prior to the date of the request. Unless otherwise specified in this AO or in other applicable state and federal rules, records shall be kept for a minimum of five (5) years. [R307-401-8] I.5 At all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any equipment approved under this AO, including associated air pollution control equipment, in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on information available to the Director which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. All maintenance performed on equipment authorized by this AO shall be recorded. [R307-401-4] I.6 The owner/operator shall comply with UAC R307-107. General Requirements: Breakdowns. [R307-107] I.7 The owner/operator shall comply with UAC R307-150 Series. Emission Inventories. [R307-150] I.8 The owner/operator shall submit documentation of the status of installation of the new generators to the Director within 18 months from the date of this AO. This AO may become invalid if construction is not commenced within 18 months from the date of this AO or if construction is discontinued for 18 months or more. To ensure proper credit when notifying the Director, send the documentation to the Director, attn.: NSR Section. [R307-401-18] SECTION II: PERMITTED EQUIPMENT II.A THE APPROVED EQUIPMENT II.A.1 Leamington Cement Plant II.A.2 Quarry: Quarry Operations Rock drilling operations, truck hauling, and storage piles. DAQE-AN103030033-24 Page 6 II.A.3 Stockpiles Coal storage Area: 1 acre Annual throughput 20,000 tpy AF and ARM stockpiles (new) Area: 0.25 acre Annual throughput 8,000 tpy II.A.4 211.BF1: Stationary Crusher Stationary crusher with an approximate production rate of 1,000 tons per hour, for reduction of quarried material to 3-inch minus sized material. The crusher is equipped with a 20,000 acfm baghouse and with water sprays on the feed hopper. (pre-1983) II.A.5 211.BF2: Raw Material Transfer Crushed material is transported to raw material storage by belt B8. The raw material transfers at the end of conveyor B8 prior to loading into raw material reclaim area. The conveyor transfer point is equipped with a baghouse 1,500 acfm total airflow, 216 ft2 total filter area & water sprays. (pre-1983) II.A.6 Material Handling Conveyor belt systems, secondary feeders and screens, stacker system II.A.7 Portable Crusher Portable unit, not a stationary source, no unit specific requirements II.A.8 311.BC1: Belt Conveyor Transfer Baghouse Located prior to raw materials processing, this baghouse (141 ft2 filter area; 1,800 acfm total air flow) controls emissions from the conveyor belt that transfers the stacked material to the raw material silos. II.A.9 315.SX1 through 4: Raw Material Silos Raw materials such as limestone, silica, iron, and shale are stored in one (1) of four (4) silos. The four (4) silos are equipped with one (1) common Fuller, plenum pulse baghouse - 1,689 ft2 filter area; 9,865 acfm total air flow controlling particulates from stack C125 (raw storage) . II.A.10 315.BF2: Fifth Component Silo Raw materials are stored in a silo. This silo is equipped with a BHA, pulse jet baghouse, 844 ft2 filter area; 3,500 acfm total air flow. II.A.11 316.BF1 through 5: Raw Mill Recirculation Larger particles are removed from the raw mill, recirculated, and reintroduced into the raw mill feed. This system includes vibrating feeders, a conveyor system, and a surge bin. Emissions are controlled by five (5) equivalent baghouses (316.BF1, 316.BF2, 316.BF3, 316.BF4, and 316.BF5), each of which is a DCE Incorporated Model DLM V15/15F with 1,000 acfm and a 6.21:1 A/C ratio. II.A.12 316.BF6: Cross-Belt Analyzer Used for quality control. Emissions are controlled by a 1,400 acfm baghouse. II.A.13 317.BF3: Kiln, Pre-Calciner, and Raw Mill Kiln burning process, calciner, and preheater tower off gases are directed through the bottom of the raw mill, where finely ground raw material is picked up. Combustion gases and fine raw materials are then vented to a baghouse on the main stack (D38). The following equipment is installed: low-NOx burner, selective non-catalytic reduction (SNCR) for NOx control; NOx, CO, total hydrocarbons, and oxygen (O2) CEMS; DAQE-AN103030033-24 Page 7 II.A.14 Kiln description continued mercury (Hg) CEMS, or integrated sorbent trap monitoring system; PM continuous parametric monitoring system (CPMS). A carbon injection system is installed at the raw mill bypass duct for mercury adsorption capacity. The carbon injection system is not an emission point as it is in an enclosed building. II.A.15 Solios Low Pressure Pulse Jet Baghouse One (1) Solios, low pressure pulse jet baghouse - 173,712 ft2 filter area, air flow ranging from 360,000 to 435,000 acfm, controlling particulates from stack D38 (raw mill/kiln stack 317.BF3) II.A.16 411.BF1 and 2: Two-Kiln Feed Blending Silos Raw material is blended in one (1) of two (2) blending silos prior to feeding the kiln. The blending silos are controlled by one (1) common Fuller plenum pulse baghouse - 1,351 ft2 filter area; 7,160 acfm total air flow. II.A.17 412.BF1 and 2: Blending Silo Elevators (2) Blended kiln feed is transferred to the kiln by bucket elevators. The elevators are equipped with a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm total air flow through stack E34. II.A.18 414.BF1: Kiln Feed Alleviator A pulse jet baghouse - 1,144 ft2 filter area; 1,672 acfm total air flow controls particulate from the central material silo between the blending silos and the preheater. Raw feed is removed from the system near the top of the preheater tower. II.A.19 41B.BF1: Coal Silo Storage of coal for grinding to powder, which is subsequently fired in the kiln and calciner. The coal storage silo is equipped with a Unifilter, shaker baghouse - 1,508 ft2 filter area; 1,700 acfm total air flow. II.A.20 41B.BF2: Coal Grinding System Coal is ground in a coal mill. Gases drawn from the preheater for the kiln entrain the coal in the mill and are controlled by a Fuller-Kovako Model 'S' jet pulse, 19,500 acfm rated airflow with 3.75:1 A/C ratio baghouse. II.A.21 419.BF1: Clinker Cooler and Baghouse A grate type cooler is used for cooling clinker from the kiln prior to transfer to clinker storage. The clinker cooler vent air is controlled by a Fuller, plenum pulse baghouse - 32,426 ft2 filter area; 202,414 acfm total air flow on the clinker cooler stack (F31). A PM CPMS is installed. II.A.22 419.BF8 and 419.BF10: Clinker Belt Transfer Clinker is removed from the clinker cooler by drag chains and dropped onto one (1) of two (2) clinker conveyor belts. Particulates from outside the clinker belt are controlled by one (1) Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 4,700 acfm total air flow. The conveyor and transfer points are controlled by a second, similar baghouse - 1,351 ft2 filter area; 6,500 acfm total air flow through stack F73. II.A.23 419.BF9: Clinker Silos Clinker from the clinker cooler is transferred to one (1) of three (3) storage silos. Emissions generated when loading the east and west clinker silos and the out-of-spec silo are controlled by a baghouse. II.A.24 419.BF9: East Clinker Belt Clinker from the clinker cooler is transferred into the east clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. DAQE-AN103030033-24 Page 8 II.A.25 419.BF9: West Clinker Belt Clinker from the clinker cooler is transferred into the West clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. II.A.26 419.BF9 - Pulse Jet Baghouse One (1) General Electric pulse jet baghouse - 11,880 acfm total air flow controlling particulates from east and west clinker storage silos and from the out-of-specification silo. II.A.27 511.BF1: East Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the East clinker storage silo. Emissions during transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.28 511.BF2: West Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the West clinker storage silo. Emissions during the transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.29 511.BF3: Clinker Reclaim Hopper Imported clinker is fed to the clinker tunnel conveyor belt by the outside clinker hopper. Emissions during the transfer of clinker to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.30 511.BF4: Gypsum Silo Discharge Gypsum is fed to the clinker tunnel conveyor belt from the gypsum storage silo. Emissions during the transfer of gypsum to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.31 511.BF1 through 4: Clinker Tunnel Exitway The clinker reclaim hopper baghouse (511.BF3), east clinker silo discharge baghouse (511.BF1), west clinker silo discharge baghouse (511.BF2), and gypsum silo discharge baghouse (511.BF4) all discharge in the clinker tunnel. Emissions are discharged through the tunnel exitway. II.A.32 512.SX1: Gypsum Silo Gypsum is stored in the gypsum storage silo. A Unifilter 1,500 acfm total airflow, 1,508 ft2 total filter area baghouse is installed on the gypsum storage silo to control dust during loading. II.A.33 512.BF2 and 3: Limestone Silo and Belt Limestone is stored in the limestone storage silo and transferred to the finish mill by conveyor belt. Emissions from the silo and conveyor are controlled by two (2) BHA baghouses. 512.BF2 (1800 acfm) discharges in the clinker tunnel. 512.BF3 (1,000 acfm) is located on top of the silo. II.A.34 514.BF2: Finish Mill (Ball Mill) The finish mill grinds clinker and gypsum to produce a finished cement product. Dust generated during milling is captured by a BHA, pulse jet baghouse - 6,080 ft2 filter area, and 32,000 acfm total air flow controlling particulates from stack G105 (finish grinding stack). II.A.35 514.BF1: Finish Mill Separator After clinker and gypsum are ground into cement products, a separator returns the oversized cement particles to the finish mill. Dust generated by the finish mill separator is collected by a BHA, pulse jet baghouse - 4,053 ft2 filter area 20,000 acfm, total air flow controlling particulates from stack G55 (finish mill stack). DAQE-AN103030033-24 Page 9 II.A.36 611.BF1: Finish Cement Storage Silos There are six (6) storage and two (2) interstice silos where the finished cement product is stored. A single common Fuller plenum pulse baghouse - 1,351 ft2 filter area; 8,000 acfm total air flow through stack H7 is located on top of the silos and is used to control emissions during loading and unloading operations. II.A.37 611.BF3: North Cement Load Out The cement loadout system located on the north side of the silos (rail load outside) is controlled by a Fuller, pulse jet baghouse - with 676 ft2 filter area; 2,800 acfm air flow during unloading from the silos for rail shipping. II.A.38 611.BF2, 611.BF4, 611.BF5: South Cement Load Out The cement loadout system located on the south side of the silos (truck load outside) is controlled by a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm air flow (611.BF2) during unloading from the silos for truck shipping. Two (2) pulse jet baghouses (611.BF4, 611.BF5; both 2,825 acfm and 682 ft2 filter area) control emissions from the cement conveyor fluidslides and truck loading chutes. II.A.39 MHO: Materials Handling Operation Includes the following emission units: 315.SX1 through 4; 315.BF2; 316.BF1 through 5; 316.BF6; 411.BF1 & 2; 412.BF1 & 2; 414.BF1; 419.BF8; 514.BF3; 419.BF9; 419.BF10; 511.BF1 through 4; 512.SX1; 611.BF1 through 5; 512.BF2 & 3; 413.BF1. II.A.40 LBS: Limestone Bypass System Additional limestone is added to the clinker and gypsum by the limestone bypass system (LBS). The LBS consists of a screen and conveyors. Emissions are controlled by water sprays at the screen and material handling drop points. II.A.41 GEN: Emergency Generators One (1) diesel-fired emergency generator Rating: 762 hp (Kiln, Tier 3, permitted 2022) Two (2) natural gas-fired emergency generators (new) Rating: 304 hp (Main office and control room, installed in 2023) One (1) diesel-fired emergency generator (new) Rating: 762 hp (Shipping, installed 2023). II.A.42 Dust Shuttle System A dust shuttling system is used intermittently to mitigate mercury emissions as required. The system includes the following equipment: elevator from baghouse (317.BE1), pneumatic air slide (317.AS12), alkali silo (413.BN1), pug mill (413.MZ1), pug mill loadout (wetted material), fringe bin (Finish Mill) (514.BN1), 14-inch knife gate (317.GA2), 8-inch knife gate (317.GA4), 8-inch air slides (317.AS21, 317.AS22, 317.AS23), surge bin (317.BN1), pneumatic blower system (413.BL2). II.A.43 Dust shuttle systems continued Emissions from the dust shuttle system are controlled by a baghouse (4,500 acfm) on the fringe bin (514.BF3) and a baghouse (4,500 acfm) on the alkali silo (413.BF1). II.A.44 Miscellaneous Storage Tanks One (1) diesel storage tank (<2,000 gallons) One (1) gasoline storage tank (500 gallons) Three (3) ammonia storage tanks (8,000 gallons each). DAQE-AN103030033-24 Page 10 SECTION II: SPECIAL PROVISIONS II.B REQUIREMENTS AND LIMITATIONS II.B.1 Requirements on the Cement Plant: II.B.1.a The following limits shall not be exceeded: A. Clinker production - 962,265 tons per rolling 12-month period. B. Used oil consumption - 85,724 gallons per rolling 12-month period. C. Limestone bypass material processed - 150,000 tons per rolling 12-month period. [R307-401-8] II.B.1.a.1 To determine compliance with a rolling 12-month total, the owner/operator shall calculate a new 12-month total by the 25th day of each month using data from the previous 12 months. Records shall be kept for all periods when the plant is in operation. Consumption and production shall be calculated through use of the plant's acquisition system. [R307-401-8] II.B.1.b Emissions to the atmosphere at all times from the indicated emission point(s) shall not exceed the following rates and concentrations: Source: Kiln 1/Raw Mill Stack (D38). PM: 0.07 lbs filterable PM per ton of clinker. SO2: 0.4 lbs per ton of clinker (3-hr average). CO: 13,045 tons per rolling 12-month period, and 6,600 lbs/hr. NOx: 2.8 lbs per ton clinker based upon a 30-day rolling average, and 1,347.2 tons per rolling 12-month period. Dioxins and furans (D/F): 0.2 ng/dscm (TEQ) (corrected to 7% O2); or 0.4 ng/dscm (TEQ) (corrected to 7% O2) when the average temperature at the inlet of the PM control device is 400oF or less. Mercury (Hg): 55 lb/MM tons clinker. THC: 24 ppmvd (corrected to 7% O2). Source: Clinker Cooler Stack (F31). PM: 0.07 lbs filterable PM per ton of clinker. [40 CFR 63 Subpart LLL, R307-401-8] DAQE-AN103030033-24 Page 11 II.B.1.c A fugitive coal dust emissions control plan shall be submitted in accordance with 40 CFR 60.254(c) for the coal stockpile. Adherence to the most recently submitted fugitive coal dust emissions control plan shall be monitored to demonstrate that appropriate control measures are being implemented to minimize fugitive coal dust to the greatest extent practicable. A copy of the most recently submitted fugitive coal dust control plan shall be kept on site. Records shall be kept that demonstrate all components required by 40 CFR 60.254(c) have been included in the plan and that the source is operating in accordance with the submitted plan. For petitions to approve alternative control measures, the permittee shall keep a copy of the submitted petition and any approvals received. [40 CFR 60 Subpart Y] II.B.1.d Unless the owner/operator has chosen to operate the Leamington Cement Plant as an area source of HAPs, emissions of HCl shall not exceed 3 ppmvd (corrected to 7% O2). [40 CFR 63 Subpart LLL] DAQE-AN103030033-24 Page 12 II.B.1.e Stack testing to show compliance with the emission limitations stated in Conditions II.B.1.b and II.B.1.d shall be performed as specified below: A. Kiln/Raw Mill Stack Pollutant Test Status Test Frequency PM * # CO * ++ SO2 ** ## NOx * ++ Dioxin/Furan * +++ THC *** ++ Hg *** ++ HCL *** ++ B. Clinker Cooler (F31) Pollutant Test Status Test Frequency PM * # C. Testing Status (To be applied above) * The initial testing has already been performed. ** The SO2 initial performance test was conducted on August 26, 2013. *** The initial compliance test shall be conducted within the first 30 operating days of operation in which the affected source operates using a CEMS. # Test once every year. If performance testing would be required less than 15 operating days after the Kiln has completed Startup after being down for more than 24 hours, then performance testing may be deferred up to 15 operating days after completion of the Startup. The Director may require testing at any time. ## Test at least once every two (2) years. The Director may require testing at any time. ++ Compliance with the limits shall be demonstrated through the use of a continuous emissions monitoring system as outlined in Conditions II.B.3.a and II.B.1.e.5. The PM10 initial performance test shall be performed in accordance with 40 CFR 63.1349, and compliance shall be demonstrated as follows: To determine continuous operating compliance, the owner/operator must record the PM CPMS output data for all periods when the process is operating, and use all the PM CPMS data for calculations when the PM CPMS is not out-of-control. The owner/operator must demonstrate continuous compliance by using all quality-assured hourly average data collected by the PM CPMS for all operating hours to calculate the arithmetic average operating parameter in units of the operating limit on a 30-operating day rolling average basis, updated at the end of each new kiln operating day. +++ Test every 30 months. [40 CFR 63 Subpart LLL, R307-401-8] DAQE-AN103030033-24 Page 13 II.B.1.e.1 Notification The Director shall be notified at least 30 days prior to conducting any required emission testing. A source test protocol shall be submitted to DAQ when the testing notification is submitted to the Director. The notification requirements for performance tests subject to 40 CFR 63, Subpart LLL are required within 60 days prior to conducting the performance testing. The source test protocol shall be approved by the Director prior to performing the test(s). The source test protocol shall outline the proposed test methodologies, stack to be tested, and procedures to be used. A pretest conference shall be held, if directed by the Director. [R307-165] II.B.1.e.2 Sample Location The emission point shall be designed to conform to the requirements of 40 CFR 60, Appendix A, Method 1, or other EPA-approved methods acceptable to the Director. An Occupational Safety and Health Administration (OSHA)- or Mine Safety and Health Administration (MSHA)- approved access shall be provided to the test location. [R307-165] II.B.1.e.3 Volumetric Flow Rate 40 CFR 60, Appendix A, Method 2. [R307-165] II.B.1.e.4 PM 40 CFR 60, Appendix A, Method 5 or 5I or other EPA-approved method as acceptable to the Director. The initial and subsequent PM performance tests shall be performed using Method 5 or 5I and consist of three (3) one-hr tests. [40 CFR 63 Subpart LLL, R307-165] II.B.1.e.5 Carbon Monoxide (CO) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.6 Nitrogen Oxides (NOx) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.7 Sulfur Dioxide (SO2) 40 CFR 60, Method 6 or 6C of Appendix A-4 or other EPA-approved method as acceptable to the Director. [R307-165] II.B.1.e.8 Dioxin/Furan Continuous Monitoring System. [40 CFR 63 Subpart LLL] II.B.1.e.9 Total Hydrocarbons (THC) Continuous Emission Monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.10 Mercury (Hg) Continuous Emission or integrated sorbent trap monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.11 HCl Performance test methods and procedures found in 40 CFR 63.1349(b)(6) or other EPA- approved method as acceptable to the Director. [40 CFR 63 Subpart LLL] II.B.1.e.12 Calculations To determine mass emission rates (lb/hr, etc.) the pollutant concentration as determined by the appropriate methods above shall be multiplied by the volumetric flow rate and any necessary conversion factors determined by the Director, to give the results in the specified units of the emission limitation. [R307-165] II.B.1.e.13 Existing Source Operation For an existing source/emission point, the production rate during all compliance testing shall be no less than 90% of the maximum production achieved in the previous three (3) years. [R307-165] DAQE-AN103030033-24 Page 14 II.B.1.f The owner/operator shall determine clinker production as outlined in 40 CFR 63 Subpart LLL. [40 CFR 63 Subpart LLL] II.B.1.g The Dust Shuttle System Fringe Bin and Alkali Silo baghouses shall be operating at all times of Dust Shuttle System operation to assist in the capture of Mercury emission. [R307-401-8] II.B.1.h Visible emissions from the following emission points shall not exceed the following values: A. All crushers - 15% opacity. B. All screens - 10% opacity. C. Conveyor transfer points - 10% opacity. D. All stacking conveyors - 10% opacity. E. Bins and trap feeder - 10% opacity. F. All diesel engines - 20% opacity. G. All support equipment - 20% opacity. H. All baghouses - 10% opacity. I. Fugitive dust - 20% opacity. J. All other points, except for blasting - 20% opacity. [R307-401-8] DAQE-AN103030033-24 Page 15 II.B.1.i Any totally enclosed conveying system transfer point, regardless of the location of the transfer point, is not required to conduct Method 22 visible emissions monitoring under this paragraph. The enclosures for these transfer points must be operated and maintained as total enclosures on a continuing basis in accordance with the facility operations and maintenance plan. If any partially enclosed or unenclosed conveying system transfer point is located in a building, the owner/operator must conduct a Method 22 performance test of Appendix A-7 to 40 CFR 60, according to the following: (i) The owner/operator must conduct a monthly ten-minute visible emissions test of each affected source in accordance with Method 22 of Appendix A-7 to 40 CFR 60. The performance test must be conducted while the affected source is in operation. (ii) If no visible emissions are observed in six (6) consecutive monthly tests for any affected source, the owner/operator may decrease the frequency of performance testing from monthly to semi-annually for that affected source. If visible emissions are observed during any semi-annual test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six (6) consecutive monthly tests. (iii) If no visible emissions are observed during the semi-annual test for any affected source, the owner/operator may decrease the frequency of performance testing from semi- annually to annually for that affected source. If visible emissions are observed during any annual performance test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six (6) consecutive monthly tests. (iv) If visible emissions are observed during any Method 22 performance test of Appendix A-7 to 40 CFR 60, the owner/operator must conduct 30 minutes of opacity observations, recorded at 15-second intervals, in accordance with Method 9 of Appendix A-4 to 40 CFR 60. The Method 9 performance test of Appendix A-4 to 40 CFR 60 must begin within one (1) hour of any observation of visible emissions. (v) If visible emissions from a building are monitored, the requirements of paragraphs (i) through (iv) of this condition apply to the monitoring of the building, and the owner/operator must also test visible emissions from each side, roof, and vent of the building for at least ten (10) minutes. [R307-401] II.B.2 Roads and Fugitive Dust Requirements: II.B.2.a Paved roads and operational areas shall be swept and/or water sprayed to minimize fugitive dusts as dry conditions warrant or as determined necessary by the Director to maintain opacity limits listed in this AO. [R307-401] II.B.2.b All unpaved roads and other unpaved operational areas that are used by mobile equipment shall be water sprayed and/or chemically treated to control fugitive dust. The application of water or chemical treatment shall be used. Treatment shall be of sufficient frequency and quantity to maintain the surface material in a damp/moist condition, unless it is below freezing. If chemical treatment is to be used, the plan must be approved by the Director. Records of water and/or chemical treatment shall be kept for all periods when the plant is in operation. The records shall include the following items: Instances of water and/or chemical application to unpaved areas shall be recorded and maintained by the owner/operator. The ambient temperature shall be recorded any time water should be applied but cannot due to freezing conditions. [R307-401-8] DAQE-AN103030033-24 Page 16 II.B.2.c Water sprays or chemical dust suppression sprays shall be installed at the following points to control fugitive emissions: A. Hopper at the primary crusher. B. Material belt feeding the stacker. C. Limestone bypass screen/ conveyor drops. The sprays shall operate whenever dry conditions warrant meeting the required opacity limitations or as determined necessary by the Director. Water sprays shall not be required during periods of freezing temperatures. [R307-401-8] II.B.2.d All disturbed surfaces not involved with operations shall be stabilized to minimize generation of fugitive dusts as dry conditions warrant or as determined necessary by the Director. [R307-401-8] II.B.3 Continuous Emission Monitoring Requirements: II.B.3.a The owner/operator shall install, calibrate, maintain, and continuously operate a continuous emissions monitoring system on the Kiln 1/raw mill stack and clinker cooler. The owner/ operator shall record the output of the system, including the quantity of NOx and CO emissions at the kiln stack. For the NOx mass emission limits, during any time when the CEMS are inoperable and otherwise not measuring emissions of NOx from the kiln, the owner/operator shall apply the missing data substitution procedures used by the UDAQ or the missing data substitution procedures in 40 CFR Part 75, Subpart D, whichever is deemed appropriate by the UDAQ. In calculating the 30-day rolling average emission rate, the total pounds of NOx emitted during a specified period shall include all kiln emissions that occur during the specified period, including during each startup, shutdown, or malfunction. The monitoring system shall comply with all applicable sections of R307-170, UAC; and 40 CFR 60, Appendix B. Total Hydrocarbons (THC) and Oxygen (O2) CEMs shall be installed on Kiln 1. A mercury (Hg) CEM, or integrated sorbent trap monitoring system, shall be installed on Kiln 1. A HCl CEM shall be installed on Kiln 1. Except for system breakdown, repairs, calibration checks, and zero and span adjustments required under paragraph (d) 40 CFR 60.13, the owner/operator of an affected source shall continuously operate all required continuous monitoring devices and shall meet minimum frequency of operation requirements as outlined in 40 CFR 60.13 and Section UAC R307-170. [40 CFR 63 Subpart LLL, R307-170] II.B.3.b The owner/operator shall install and operate a PM CPMS on the Kiln 1/Raw Mill and clinker cooler stacks in accordance with the requirements of 40 CFR 63.1350 (b) and (d). Except during periods of CPMS breakdowns, repairs, calibration checks, and zero span adjustments, the PM CPMS shall be operated at all times of kiln operation. The owner/operator shall use a PM CPMS to establish a Site-Specific Operating Limit (SSOL) for PM corresponding to the results of the performance test demonstrating compliance with the filterable PM limit and using the methodology in 40 CFR 63.1349(b). The owner/operator shall reassess and adjust the SSOL developed in accordance with the results of the most recent PM performance test demonstrating compliance with the PM emission limit. The owner/operator shall use the PM CPMS to demonstrate continuous compliance with the SSOL in accordance with the requirements of 40 CFR 63.1350(b)(1). [40 CFR 63 Subpart LLL] DAQE-AN103030033-24 Page 17 II.B.4 Fuel Limitations: II.B.4.a The owner/operator shall use only the following fuels in the kiln and pre-calciner: A. Coal. B. Diaper Derived Fuel (DDF). C. Tire Derived Fuel (TDF). D. Natural Gas. E. Coke. F. Fuel Oil. G. Used Oil fuel. H. Synthetic Fuel. I. Wood. J. Coal Additives as defined in Condition II.B.4.b The maximum TDF consumption shall not exceed 15% of the combined total energy input to the rotary kiln and pre-calciner. This shall be verified on a rolling 12-month basis by examination of the fuel use totals and their respective heating values. If any other fuel is to be used, an AO shall be required in accordance with R307-401, UAC. [R307-401] II.B.4.b The coal additives listed above shall consist of alternative fuels approved by the Director. Prior to burning any proposed coal additive, the owner/operator shall obtain approval from the Director. To obtain approval, the owner/operator shall submit Material Safety Data Sheets (MSDS) or the results of suitable tests giving data similar to a Proximate and Ultimate analysis of the proposed coal additive. [R307-401-8] II.B.4.b.1 Approval by the Director shall consist of a letter approving the use of the proposed coal additive. Approval is not required to change from one (1) previously-approved coal additive to another previously-approved coal additive. [R307-401-8] II.B.4.b.2 The average quantity of coal additives burned shall not be greater than 15% of the total daily heat input of the kiln and precalciner. The owner/operator may increase the average quantity of coal additives up to 25% of the total daily heat input of the kiln and precalciner upon approval by the Director in accordance with the approval process described in Condition II.B.4.b. [R307-401-8] II.B.4.c The sulfur content of any coal, oil, or mixture thereof, burned in any fuel burning or process installation not covered by New Source Performance Standards for sulfur emissions or covered elsewhere in this AO, shall contain no more than 1.0-pound sulfur per million gross Btu heat input for any mixture of coal nor 0.85 pounds sulfur per million gross Btu heat input for any oil except used oil. The sulfur content shall comply with all applicable sections of UAC R307-203. [R307-203, R307-401-8] DAQE-AN103030033-24 Page 18 II.B.4.c.1 Certification of fuels shall be either by the owner/operator's own testing or test reports from the fuel marketer. Records of each fuel supplier's test report on sulfur content shall be available onsite. Methods for determining sulfur content of coal and fuel oil shall be those methods of the American Society for Testing and Materials, UAC R307-203-1 (4) A. For determining sulfur content in coal, ASTM Methods D3177-75 or D4239-85 are to be used. B. For determining sulfur content in oil, ASTM Methods D2880-71 or D4294-89 are to be used. C. For determining the gross calorific (or Btu) content of coal, ASTM Methods D2015-77 or D3286-85 are to be used. [R307-203] II.B.4.d The concentration/parameters of contaminants in any used oil fuel shall not exceed the following levels: 1) Arsenic 5 ppm by weight 2) Barium 100 ppm by weight 3) Cadmium 2 ppm by weight 4) Chromium 10 ppm by weight 5) Lead 100 ppm by weight 6) Total halogens 1,000 ppm by weight 7) Sulfur 0.5 percent by weight A. The flash point of all used oil to be burned shall not be less than 100oF. B. The owner/operator shall provide test certification for each load of used oil fuel received. Certification shall be either by their own testing or test reports from the used oil fuel marketer. Records of used oil fuel consumption and the test reports shall be kept for all periods when the plant is in operation. C. Used oil that does not exceed any of the listed contaminants content may be burned. The owner/operator shall record the quantities of oil burned on a daily basis. D. Any used oil fuel that contains more than 1000 ppm by weight of total halogens shall be considered a hazardous waste and shall not be burned in the kiln/preheater. The oil shall be tested for halogen content by ASTM Method D- 808-81, EPA Method 8240 or Method 8260 before used oil fuel is transferred to the burn tank and burned. [R307-401-8] DAQE-AN103030033-24 Page 19 II.B.4.e The following operating parameters shall be met at all times when used oil or TDF is burned in the rotary kiln: A. Combustion gas temperature at the rotary kiln exit - no less than 1500oF for more than five (5) minutes in any 60-minute period. B. Oxygen content at the kiln system ID fan - no less than 2% for more than five (5) minutes in any 60-minute period. [R307-401-8] II.B.4.e.1 The temperature and oxygen content shall both be monitored with equipment approved by the Director. The calibration procedure and frequency shall be according to manufacturer's specifications. Use of factory-calibrated thermocouples for temperature measurement is approved. However, any other method of temperature measurement must be approved by the Director prior to use. The monitoring equipment for both temperature and oxygen content shall be located such that an inspector can at any time safely read the output. [R307-401-8] PERMIT HISTORY This Approval Order shall supersede (if a modification) or will be based on the following documents: Supersedes AO DAQE-AN103030030-22 dated April 20, 2022 Is Derived From Source Submitted NOI dated June 13, 2023 Incorporates Additional Information Received dated January 9, 2024 Incorporates Additional Information Received dated January 10, 2024 Incorporates Additional Information Received dated January 17, 2024 DAQE-AN103030033-24 Page 20 ACRONYMS The following lists commonly used acronyms and associated translations as they apply to this document: 40 CFR Title 40 of the Code of Federal Regulations AO Approval Order BACT Best Available Control Technology CAA Clean Air Act CAAA Clean Air Act Amendments CDS Classification Data System (used by Environmental Protection Agency to classify sources by size/type) CEM Continuous emissions monitor CEMS Continuous emissions monitoring system CFR Code of Federal Regulations CMS Continuous monitoring system CO Carbon monoxide CO2 Carbon Dioxide CO2e Carbon Dioxide Equivalent - Title 40 of the Code of Federal Regulations Part 98, Subpart A, Table A-1 COM Continuous opacity monitor DAQ/UDAQ Division of Air Quality DAQE This is a document tracking code for internal Division of Air Quality use EPA Environmental Protection Agency FDCP Fugitive dust control plan GHG Greenhouse Gas(es) - Title 40 of the Code of Federal Regulations 52.21 (b)(49)(i) GWP Global Warming Potential - Title 40 of the Code of Federal Regulations Part 86.1818- 12(a) HAP or HAPs Hazardous air pollutant(s) ITA Intent to Approve LB/YR Pounds per year MACT Maximum Achievable Control Technology MMBTU Million British Thermal Units NAA Nonattainment Area NAAQS National Ambient Air Quality Standards NESHAP National Emission Standards for Hazardous Air Pollutants NOI Notice of Intent NOx Oxides of nitrogen NSPS New Source Performance Standard NSR New Source Review PM10 Particulate matter less than 10 microns in size PM2.5 Particulate matter less than 2.5 microns in size PSD Prevention of Significant Deterioration PTE Potential to Emit R307 Rules Series 307 R307-401 Rules Series 307 - Section 401 SO2 Sulfur dioxide Title IV Title IV of the Clean Air Act Title V Title V of the Clean Air Act TPY Tons per year UAC Utah Administrative Code VOC Volatile organic compounds DAQE-IN103030033-24 February 12, 2024 Paul Pederson Ash Grove Cement Company P.O. Box 38069 Leamington, UT 84638 cody.watkins@ashgrove.com Dear Mr. Pederson: Re: Intent to Approve: Modification of Approval Order DAQE-AN103030030-22 to Install New Emergency Generators and Operations Update Project Number: N103030033 The attached document is the Intent to Approve (ITA) for the above-referenced project. The ITA is subject to public review. Any comments received shall be considered before an Approval Order (AO) is issued. The Division of Air Quality is authorized to charge a fee for reimbursement of the actual costs incurred in the issuance of an AO. An invoice will follow upon issuance of the final AO. Future correspondence on this ITA should include the engineer's name, John Jenks, as well as the DAQE number as shown on the upper right-hand corner of this letter. John Jenks, can be reached at (385) 306- 6510 or jjenks@utah.gov, if you have any questions. Sincerely, {{$s }} Jon L. Black, Manager New Source Review Section JLB:JJ:jg cc: Central Utah Health Department DJ Law, EPA Region 8 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801) 536-4099 • T.D.D. (801) 536-4414 www.deq.utah.gov Printed on 100% recycled paper State of Utah SPENCER J. COX Governor DEIDRE HENDERSON Lieutenant Governor Department of Environmental Quality Kimberly D. Shelley Executive Director DIVISION OF AIR QUALITY Bryce C. Bird Director * ) ' & — @ A v A ? A C @ E w C ? ˜ STATE OF UTAH Department of Environmental Quality Division of Air Quality INTENT TO APPROVE DAQE-IN103030033-24 Modification of Approval Order DAQE-AN103030030-22 to Install New Emergency Generators and Operations Update Prepared By John Jenks, Engineer (385) 306-6510 jjenks@utah.gov Issued to Ash Grove Cement Company - Leamington Cement Plant Issued On February 12, 2024 {{$s }} New Source Review Section Manager Jon L. Black {{#s=Sig_es_:signer1:signature}} * ) ' & — @ A v A ? A C @ E w C ? ˜ TABLE OF CONTENTS TITLE/SIGNATURE PAGE ....................................................................................................... 1 GENERAL INFORMATION ...................................................................................................... 3 CONTACT/LOCATION INFORMATION ............................................................................... 3 SOURCE INFORMATION ........................................................................................................ 3 General Description ................................................................................................................ 3 NSR Classification .................................................................................................................. 3 Source Classification .............................................................................................................. 3 Applicable Federal Standards ................................................................................................. 3 Project Description.................................................................................................................. 4 SUMMARY OF EMISSIONS .................................................................................................... 4 PUBLIC NOTICE STATEMENT............................................................................................... 5 SECTION I: GENERAL PROVISIONS .................................................................................... 5 SECTION II: PERMITTED EQUIPMENT .............................................................................. 6 SECTION II: SPECIAL PROVISIONS ................................................................................... 10 PERMIT HISTORY ................................................................................................................... 19 ACRONYMS ............................................................................................................................... 20 DAQE-IN103030033-24 Page 3 GENERAL INFORMATION CONTACT/LOCATION INFORMATION Owner Name Source Name Ash Grove Cement Company Ash Grove Cement Company - Leamington Cement Plant Mailing Address Physical Address P.O. Box 38069 Highway 132 Leamington, UT 84638 Leamington, UT 84638 Source Contact UTM Coordinates Name: Cody Watkins 397000 m Easting Phone: (385) 225-0615 4380100 m Northing Email: cody.watkins@ashgrove.com Datum NAD83 UTM Zone 12 SIC code 3241 (Cement, Hydraulic) SOURCE INFORMATION General Description Ash Grove Cement Company (Ash Grove) operates the Leamington cement manufacturing plant in Juab County, Utah. Cement is produced when inorganic raw materials, primarily limestone (quarried on site), are correctly proportioned, ground and mixed, and then fed into a rotating kiln. The kiln alters the materials and recombines them into small stones called cement clinker. The clinker is cooled and ground with gypsum and additional limestone into a fine powdered cement. The final product is stored on site for later shipping. The major sources of air emissions are from the combustion of fuels for the kiln operation, from the kiln, and from the clinker cooling process. The Leamington cement plant is a major source for emissions of PM2.5, PM10, NOx, SO2, CO, HAPs and GHG. NSR Classification Minor Modification at Major Source Source Classification Located in Attainment Area Millard County Airs Source Size: A Applicable Federal Standards NSPS (Part 60), A: General Provisions NSPS (Part 60), Y: Standards of Performance for Coal Preparation and Processing Plants NSPS (Part 60), OOO: Standards of Performance for Nonmetallic Mineral Processing Plants NSPS (Part 60), IIII: Standards of Performance for Stationary Compression Ignition Internal Combustion Engines DAQE-IN103030033-24 Page 4 NSPS (Part 60), JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines MACT (Part 63), A: General Provisions MACT (Part 63), LLL: National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry MACT (Part 63), ZZZZ: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines Title V (Part 70) Major Source Project Description On June 13, 2023, Ash Grove submitted a NOI for the Leamington Plant to obtain an updated AO. Ash Grove is proposing to install two (2) natural gas emergency generators and to replace its emergency shipping generator. Two (2) stockpiles will also be added under this project, as will associated increases in truck traffic and material handling operations. This project will be classified as a minor modification of the Leamington Plant's existing AO. In addition, Ash Grove has requested that this project be reviewed as an enhanced AO for incorporation into its Title V permit. SUMMARY OF EMISSIONS The emissions listed below are an estimate of the total potential emissions from the source. Some rounding of emissions is possible. Criteria Pollutant Change (TPY) Total (TPY) CO2 Equivalent 0 1.00 Carbon Monoxide 0.13 13045.00 Lead Compounds 0 0.04 Nitrogen Dioxide -0.35 1351.44 Particulate Matter - PM10 1.57 236.36 Particulate Matter - PM2.5 0.39 230.74 Sulfur Dioxide -0.10 192.40 Volatile Organic Compounds 0 59.38 Hazardous Air Pollutant Change (lbs/yr) Total (lbs/yr) Benzene (Including Benzene From Gasoline) (CAS #71432) 0 1500 Beryllium (TSP) (CAS #7440417) 0 1 Chromium Compounds (CAS #CMJ500) 0 135 Dioxin/Furan Toxic Equivalents: 2,3,7,8-Tetrachlorodibenzo-P- Dioxin (CAS #1746016) 0 2 Formaldehyde (CAS #50000) 0 18755 Hydrochloric Acid (Hydrogen Chloride) (CAS #7647010) 0 41640 Lead Compounds (CAS #LCT000) 0 72 Mercury (TSP) (CAS #7439976) 0 53 Naphthalene (CAS #91203) 0 1600 Selenium (TSP) (CAS #7782492) 0 200 Change (TPY) Total (TPY) Total HAPs 0 31.98 DAQE-IN103030033-24 Page 5 PUBLIC NOTICE STATEMENT The NOI for the above-referenced project has been evaluated and has been found to be consistent with the requirements of UAC R307. Air pollution producing sources and/or their air control facilities may not be constructed, installed, established, or modified prior to the issuance of an AO by the Director. A 30-day public comment period will be held in accordance with UAC R307-401-7. A notification of the intent to approve will be published in the Millard County Chronicle Progress on February 14, 2024. During the public comment period the proposal and the evaluation of its impact on air quality will be available for the public to review and provide comment. If anyone so requests a public hearing within 15 days of publication, it will be held in accordance with UAC R307-401-7. The hearing will be held as close as practicable to the location of the source. Any comments received during the public comment period and the hearing will be evaluated. The proposed conditions of the AO may be changed as a result of the comments received. SECTION I: GENERAL PROVISIONS The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. I.1 All definitions, terms, abbreviations, and references used in this AO conform to those used in the UAC R307 and 40 CFR. Unless noted otherwise, references cited in these AO conditions refer to those rules. [R307-101] I.2 The limits set forth in this AO shall not be exceeded without prior approval. [R307-401] I.3 Modifications to the equipment or processes approved by this AO that could affect the emissions covered by this AO must be reviewed and approved. [R307-401-1] I.4 All records referenced in this AO or in other applicable rules, which are required to be kept by the owner/operator, shall be made available to the Director or Director's representative upon request, and the records shall include the five-year period prior to the date of the request. Unless otherwise specified in this AO or in other applicable state and federal rules, records shall be kept for a minimum of five (5) years. [R307-401-8] I.5 At all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any equipment approved under this AO, including associated air pollution control equipment, in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on information available to the Director which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. All maintenance performed on equipment authorized by this AO shall be recorded. [R307-401-4] I.6 The owner/operator shall comply with UAC R307-107. General Requirements: Breakdowns. [R307-107] I.7 The owner/operator shall comply with UAC R307-150 Series. Emission Inventories. [R307-150] DAQE-IN103030033-24 Page 6 I.8 The owner/operator shall submit documentation of the status of installation of the new generators to the Director within 18 months from the date of this AO. This AO may become invalid if construction is not commenced within 18 months from the date of this AO or if construction is discontinued for 18 months or more. To ensure proper credit when notifying the Director, send the documentation to the Director, attn.: NSR Section. [R307-401-18] SECTION II: PERMITTED EQUIPMENT The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. II.A THE APPROVED EQUIPMENT II.A.1 Leamington Cement Plant II.A.2 Quarry: Quarry Operations Rock drilling operations, truck hauling, and storage piles. II.A.3 Stockpiles Coal storage Area: 1 acre Annual throughput 20,000 tpy AF and ARM stockpiles (new) Area: 0.25 acre Annual throughput 8,000 tpy II.A.4 211.BF1: Stationary Crusher Stationary crusher with an approximate production rate of 1,000 tons per hour, for reduction of quarried material to 3-inch minus sized material. The crusher is equipped with a 20,000 acfm baghouse and with water sprays on the feed hopper. (pre-1983) II.A.5 211.BF2: Raw Material Transfer Crushed material is transported to raw material storage by belt B8. The raw material transfers at the end of conveyor B8 prior to loading into raw material reclaim area. The conveyor transfer point is equipped with a baghouse 1,500 acfm total airflow, 216 ft2 total filter area & water sprays. (pre-1983) II.A.6 Material Handling Conveyor belt systems, secondary feeders and screens, stacker system II.A.7 Portable Crusher Portable unit, not a stationary source, no unit specific requirements II.A.8 311.BC1: Belt Conveyor Transfer Baghouse Located prior to raw materials processing, this baghouse (141 ft2 filter area; 1,800 acfm total air flow) controls emissions from the conveyor belt that transfers the stacked material to the raw material silos. DAQE-IN103030033-24 Page 7 II.A.9 315.SX1 thru 4: Raw Material Silos Raw materials such as limestone, silica, iron, and shale are stored in one (1) of four (4) silos. The four (4) silos are equipped with one (1) common Fuller, plenum pulse baghouse - 1,689 ft2 filter area; 9,865 acfm total air flow controlling particulates from stack C125 (raw st orage) . II.A.10 315.BF2: Fifth Component Silo Raw materials are stored in a silo. This silo is equipped with a BHA, pulse jet baghouse - 844 ft2 filter area; 3,500 acfm total air flow. II.A.11 316.BF1 thru 5: Raw Mill Recirculation Larger particles are removed from the raw mill, recirculated, and re-introduced into the raw mill feed. This system includes vibrating feeders, a conveyor system, and surge bin. Emissions are controlled by five (5) equivalent baghouses (316.BF1, 316.BF2, 316.BF3, 316.BF4, 316.BF5) - each is a DCE Inc. Model DLM V15/15F with 1,000 acfm and 6.21:1 A/C ratio. II.A.12 316.BF6: Cross-Belt Analyzer Used for quality control. Emissions are controlled by a 1,400 acfm baghouse. II.A.13 317.BF3: Kiln & Pre-Calciner and Raw Mill Kiln burning process, calciner, and preheater tower off gases are directed through the bottom of the raw mill where finely ground raw material is picked up. Combustion gases and fine raw materials are then vented to a baghouse on the main stack (D38). The following equipment is installed: low-NOx burner, selective non-catalytic reduction (SNCR) for NOx control; NOx, CO, total hydrocarbons, and oxygen (O2) CEMS; II.A.14 Kiln description continued mercury (Hg) CEMS or integrated sorbent trap monitoring system; PM continuous parametric monitoring system (CPMS). A carbon injection system is installed at the raw mill bypass duct for mercury adsorption capacity. The carbon injection system is not an emission point as it is in an enclosed building. II.A.15 Solios Low Pressure Pulse Jet Baghouse One (1) Solios, low pressure pulse jet baghouse - 173,712 ft2 filter area; air flow ranging from 360,000 to 435,000 acfm controlling particulates from stack D38 (raw mill/kiln stack 317.BF3) II.A.16 411.BF1 and 2: Two (2) Kiln Feed Blending Silos Raw material is blended in one (1) of two (2) blending silos prior to feeding the kiln. The blending silos are controlled by one (1) common Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 7,160 acfm total air flow. II.A.17 412.BF1 and 2: Blending Silo Elevators (2) Blended kiln feed is transferred to the kiln by bucket elevators. The elevators are equipped with a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm total air flow through stack E34. II.A.18 414.BF1: Kiln Feed Alleviator A pulse jet baghouse - 1,144 ft2 filter area; 1,672 acfm total air flow controls particulate from the central material silo between the blending silos and the preheater. Raw feed is removed from the system near the top of the preheater tower. II.A.19 41B.BF1: Coal Silo Storage of coal for grinding to powder, which is subsequently fired in the kiln and calciner. The coal storage silo is equipped with a Unifilter, shaker baghouse - 1,508 ft2 filter area; 1,700 acfm total air flow. DAQE-IN103030033-24 Page 8 II.A.20 41B.BF2: Coal Grinding System Coal is ground in a coal mill. Gases drawn from the preheater for the kiln entrain the coal in the mill and are controlled by a Fuller-Kovako, Model 'S' jet pulse, 19,500 acfm rated airflow with 3.75:1 A/C ratio baghouse. II.A.21 419.BF1: Clinker Cooler and Baghouse Grate type cooler used for cooling clinker from the kiln prior to transfer to clinker storage. The clinker cooler vent air is controlled by a Fuller, plenum pulse baghouse - 32,426 ft2 filter area; 202,414 acfm total air flow on the clinker cooler stack (F31). A PM CPMS is installed. II.A.22 419.BF8 and 419.BF10: Clinker Belt Transfer Clinker is removed from the clinker cooler by drag chains and dropped onto one (1) of two (2) clinker conveyor belts. Particulates from outside the clinker belt are controlled by one (1) Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 4,700 acfm total air flow. The conveyor and transfer points are controlled by a second, similar baghouse - 1,351 ft2 filter area; 6,500 acfm total air flow through stack F73. II.A.23 419.BF9: Clinker Silos Clinker from the clinker cooler is transferred to one (1) of three (3) storage silos. Emissions generated when loading the east and west clinker silos and the out-of-spec silo are controlled by a baghouse. II.A.24 419.BF9: East Clinker Belt Clinker from the clinker cooler is transferred into the East clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. II.A.25 419.BF9: West Clinker Belt Clinker from the clinker cooler is transferred into the West clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. II.A.26 419.BF9 - Pulse Jet Baghouse One (1) General Electric, pulse jet baghouse - 11,880 acfm total air flow controlling particulates from east and west clinker storage silos and from the out of specification silo II.A.27 511.BF1: East Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the East clinker storage silo. Emissions during transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.28 511.BF2: West Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the West clinker storage silo. Emissions during transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.29 511.BF3: Clinker Reclaim Hopper Imported clinker is fed to the clinker tunnel conveyor belt by the outside clinker hopper. Emissions during transfer of clinker to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.30 511.BF4: Gypsum Silo Discharge Gypsum is fed to the clinker tunnel conveyor belt from the gypsum storage silo. Emissions during transfer of gypsum to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. DAQE-IN103030033-24 Page 9 II.A.31 511.BF1 thru 4: Clinker Tunnel Exitway The clinker reclaim hopper baghouse (511.BF3), east clinker silo discharge baghouse (511.BF1), west clinker silo discharge baghouse (511.BF2), and gypsum silo discharge baghouse (511.BF4) all discharge in the clinker tunnel. Emissions are discharged through the tunnel exitway. II.A.32 512.SX1: Gypsum Silo Gypsum is stored in the gypsum storage silo. A Unifilter 1,500 acfm total airflow, 1,508 ft2 total filter area baghouse is installed on the gypsum storage silo to control dust during loadi ng. II.A.33 512.BF2 and 3: Limestone Silo & Belt Limestone is stored in the limestone storage silo and transferred to the finish mill by conveyor belt. Emissions from the silo and conveyor are controlled by two (2) BHA baghouses. 512.BF2 (1800 acfm) discharges in the clinker tunnel. 512.BF3 (1,000 acfm) is located on top of the silo. II.A.34 514.BF2: Finish Mill (Ball Mill) The finish mill grinds clinker and gypsum to produce finished cement product. Dust generated during milling is captured by a BHA, pulse jet baghouse - 6,080 ft2 filter area; 32,000 acfm total air flow controlling particulates from stack G105 (finish grinding stack). II.A.35 514.BF1: Finish Mill Separator After clinker and gypsum are ground into cement product, a separator returns the oversized cement particles to the finish mill. Dust generated by the finish mill separator is collected by a BHA, pulse jet baghouse - 4,053 ft2 filter area; 20,000 acfm total air flow controlling particulates from stack G55 (finish mill stack). II.A.36 611.BF1: Finish Cement Storage Silos There are six (6) storage and two (2) interstice silos where the finished cement product is stored. A single common Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 8,000 acfm total air flow through stack H7 is located on top of the silos and is used to control emissions during loading and unloading operations. II.A.37 611.BF3: North Cement Load Out The cement loadout system located on the North side of the silos (rail load outside) is controlled by a Fuller, pulse jet baghouse - with 676 ft2 filter area; 2,800 acfm air flow during unloading from the silos for rail shipping. II.A.38 611.BF2, 611.BF4, 611.BF5: South Cement Load Out The cement loadout system located on the South side of the silos (truck load outside) is controlled by a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm air flow (611.BF2) during unloading from the silos for truck shipping. Two (2) pulse jet baghouses (611.BF4, 611.BF5; both 2,825 acfm and 682 ft2 filter area) control emissions from the cement conveyor fluidslides and truck loading chutes. II.A.39 MHO: Materials Handling Operation Includes the following emission units: 315.SX1 thru 4; 315.BF2; 316.BF1 thru 5; 316.BF6; 411.BF1 & 2; 412.BF1 & 2; 414.BF1; 419.BF8; 514.BF3; 419.BF9; 419.BF10; 511.BF1 thru 4; 512.SX1; 611.BF1 thru 5; 512.BF2 & 3; 413.BF1. II.A.40 LBS: Limestone Bypass System Additional limestone is added to the clinker and gypsum by the limestone bypass system (LBS). The LBS consists of a screen and conveyors. Emissions are controlled by water sprays at the screen and material handling drop points. DAQE-IN103030033-24 Page 10 II.A.41 GEN: Emergency Generators One (1) diesel-fired emergency generator Rating: 762 hp (Kiln, Tier 3, permitted 2022) Two (2) natural gas-fired emergency generators (new) Rating: 304 hp (Main office and control room, installed 2023) One (1) diesel-fired emergency generator (new) Rating: 762 hp (Shipping, installed 2023). II.A.42 Dust Shuttle System A dust shuttling system is used intermittently to mitigate mercury emissions as required. The system includes the following equipment: elevator from baghouse (317.BE1), pneumatic air slide (317.AS12), alkali silo (413.BN1), pug mill (413.MZ1), pug mill loadout (wetted material), fringe bin (Finish Mill) (514.BN1), 14-inch knife gate (317.GA2), 8-inch knife gate (317.GA4), 8-inch air slides (317.AS21, 317.AS22, 317.AS23), surge bin (317.BN1), pneumatic blower system (413.BL2). II.A.43 Dust shuttle sys continued Emissions from the dust shuttle system are controlled by a baghouse (4,500 acfm) on the fringe bin (514.BF3) and a baghouse (4,500 acfm) on the alkali silo (413.BF1). II.A.44 Miscellaneous Storage Tanks One (1) diesel storage tank (<2,000 gallons) One (1) gasoline storage tank (500 gallons) Three (3) ammonia storage tanks (8,000 gallons each) SECTION II: SPECIAL PROVISIONS The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. II.B REQUIREMENTS AND LIMITATIONS II.B.1 Requirements on the Cement Plant: II.B.1.a The following limits shall not be exceeded: A. Clinker production - 962,265 tons per rolling 12-month period. B. Used oil consumption - 85,724 gallons per rolling 12-month period. C. Limestone bypass material processed - 150,000 tons per rolling 12-month period. [R307-401-8] II.B.1.a.1 To determine compliance with a rolling 12-month total, the owner/operator shall calculate a new 12-month total by the 25th day of each month using data from the previous 12 months. Records shall be kept for all periods when the plant is in operation. Consumption and production shall be calculated through use of the plant's acquisition system. [R307-401-8] DAQE-IN103030033-24 Page 11 II.B.1.b Emissions to the atmosphere at all times from the indicated emission point(s) shall not exceed the following rates and concentrations: Source: Kiln 1/Raw Mill Stack (D38) PM: 0.07 lbs filterable PM per ton of clinker SO2: 0.4 lbs per ton of clinker (3-hr average) CO: 13,045 tons per rolling 12-month period, and 6,600 lbs/hr NOx: 2.8 lbs per ton clinker based upon a 30-day rolling average, and 1,347.2 tons per rolling 12- month period Dioxins and furans (D/F): 0.2 ng/dscm (TEQ) (corrected to 7% O2); or 0.4 ng/dscm (TEQ) (corrected to 7% O2) when the average temperature at the inlet of the PM control device is 400oF or less. Mercury (Hg): 55 lb/MM tons clinker THC: 24 ppmvd (corrected to 7% O2) Source: Clinker Cooler Stack (F31) PM: 0.07 lbs filterable PM per ton of clinker. [40 CFR 63 Subpart LLL, R307-401-8] II.B.1.c A fugitive coal dust emissions control plan shall be submitted in accordance with 40 CFR 60.254(c) for the coal stockpile. Adherence to the most recently submitted fugitive coal dust emissions control plan shall be monitored to demonstrate that appropriate control measures are being implemented to minimize fugitive coal dust to the greatest extent practicable. A copy of the most recently submitted fugitive coal dust control plan shall be kept on site. Records shall be kept that demonstrate all components required by 40 CFR 60.254(c) have been included in the plan and that the source is operating in accordance with the submitted plan. For petitions to approve alternative control measures, the permittee shall keep a copy of the submitted petition and any approvals received. [40 CFR 60 Subpart Y] II.B.1.d Unless the owner/operator has chosen to operate the Leamington Cement Plant as an area source of HAPs, emissions of HCl shall not exceed 3 ppmvd (corrected to 7% O2). [40 CFR 63 Subpart LLL] DAQE-IN103030033-24 Page 12 II.B.1.e Stack testing to show compliance with the emission limitations stated in Conditions II.B.1.b and II.B.1.c shall be performed as specified below: A. Kiln/Raw Mill Stack Pollutant Test Status Test Frequency PM * # CO * ++ SO2 ** ## NOx * ++ Dioxin/Furan * +++ THC *** ++ Hg *** ++ HCL *** ++ B. Clinker Cooler (F31) Pollutant Test Status Test Frequency PM * # C. Testing Status (To be applied above) * The initial testing has already been performed. ** The SO2 initial performance test was conducted on August 26, 2013. *** The initial compliance test shall be conducted within the first 30 operating days of operation in which the affected source operates using a CEMS. # Test once every year. I f performance testing would be required less than 15 operating days after the Kiln has completed Startup after being down for more than 24 hours, then performance testing may be deferred up to 15 operating days after completion of the Startup. The Director may require testing at any time. ## Test at least once every two (2) years. The Director may require testing at any time. ++ Compliance with the limits shall be demonstrated through use of a continuous emissions monitoring system as outlined in Condition II.B.3.a and II.B.1.d.5. The PM10 initial performance test shall be performed in accordance with 40 CFR 63.1349 and compliance shall be demonstrated as follows: To determine continuous operating compliance, the owner/operator must record the PM CPMS output data for all periods when the process is operating, and use all the PM CPMS data for calculations when the PM CPMS is not out-of-control. The owner/operator must demonstrate continuous compliance by using all quality-assured hourly average data collected by the PM CPMS for all operating hours to calculate the arithmetic average operating parameter in units of the operating limit on a 30 operating day rolling average basis, updated at the end of each new kiln operating day. +++ Test every 30 months. [40 CFR 63 Subpart LLL, R307-401-8] DAQE-IN103030033-24 Page 13 II.B.1.e.1 Notification The Director shall be notified at least 30 days prior to conducting any required emission testing. A source test protocol shall be submitted to DAQ when the testing notification is submitted to the Director. The notification requirements for performance tests subject to 40 CFR 63, Subpart LLL are required within 60 days prior to conducting the performance testing. The source test protocol shall be approved by the Director prior to performing the test(s). The source test protocol shall outline the proposed test methodologies, stack to be tested, and procedures to be used. A pretest conference shall be held, if directed by the Director. [R307-165] II.B.1.e.2 Sample Location The emission point shall be designed to conform to the requirements of 40 CFR 60, Appendix A, Method 1, or other EPA-approved methods acceptable to the Director. An Occupational Safety and Health Administration (OSHA)- or Mine Safety and Health Administration (MSHA)-approved access shall be provided to the test location. [R307-165] II.B.1.e.3 Volumetric Flow Rate 40 CFR 60, Appendix A, Method 2. [R307-165] II.B.1.e.4 PM 40 CFR 60, Appendix A, Method 5 or 5I or other EPA-approved method as acceptable to the Director. The initial and subsequent PM performance tests shall be performed using Method 5 or 5I and consist of three (3) one-hr tests. [40 CFR 63 Subpart LLL, R307-165] II.B.1.e.5 Carbon Monoxide (CO) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.6 Nitrogen Oxides (NOx) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.7 Sulfur Dioxide (SO2) 40 CFR 60, Method 6 or 6C of Appendix A-4 or other EPA-approved method as acceptable to the Director. [R307-165] II.B.1.e.8 Dioxin/Furan Continuous Monitoring System. [40 CFR 63 Subpart LLL] II.B.1.e.9 Total Hydrocarbons (THC) Continuous Emission Monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.10 Mercury (Hg) Continuous Emission or integrated sorbent trap monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.11 HCl Performance test methods and procedures found in 40 CFR 63.1349(b)(6) or other EPA- approved method as acceptable to the Director. [40 CFR 63 Subpart LLL] II.B.1.e.12 Calculations To determine mass emission rates (lb/hr, etc.) the pollutant concentration as determined by the appropriate methods above shall be multiplied by the volumetric flow rate and any necessary conversion factors determined by the Director, to give the results in the specified units of the emission limitation. [R307-165] II.B.1.e.13 Existing Source Operation For an existing source/emission point, the production rate during all compliance testing shall be no less than 90% of the maximum production achieved in the previous three (3) years. [R307-165] DAQE-IN103030033-24 Page 14 II.B.1.f The owner/operator shall determine clinker production as outlined in 40 CFR 63 Subpart LLL. [40 CFR 63 Subpart LLL] II.B.1.g The Dust Shuttle System Fringe Bin and Alkali Silo baghouses shall be operating at all times of Dust Shuttle System operation to assist in the capture of Mercury emission. [R307-401-8] II.B.1.h Visible emissions from the following emission points shall not exceed the following values: A. All crushers - 15% opacity B. All screens - 10% opacity C. Conveyor transfer points - 10% opacity D. All stacking conveyors - 10% opacity E. Bins and trap feeder - 10% opacity F. All diesel engines - 20% opacity G. All support equipment - 20% opacity H. All baghouses - 10% opacity I. Fugitive dust - 20% opacity J. All other points, except for blasting - 20% opacity. [R307-401-8] DAQE-IN103030033-24 Page 15 II.B.1.i Any totally enclosed conveying system transfer point, regardless of the location of the transfer point is not required to conduct Method 22 visible emissions monitoring under this paragraph. The enclosures for these transfer points must be operated and maintained as total enclosures on a continuing basis in accordance with the facility operations and maintenance plan. If any partially enclosed or unenclosed conveying system transfer point is located in a building, the owner/operator must conduct a Method 22 performance test, of Appendix A-7 to 40 CFR 60, according to the following: (i) The owner/operator must conduct a monthly ten-minute visible emissions test of each affected source in accordance with Method 22 of Appendix A-7 to 40 CFR 60. The performance test must be conducted while the affected source is in operation. (ii) If no visible emissions are observed in six (6) consecutive monthly tests for any affected source, the owner/operator may decrease the frequency of performance testing from monthly to semi-annually for that affected source. If visible emissions are observed during any semi-annual test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six (6) consecutive monthly tests. (iii) If no visible emissions are observed during the semi-annual test for any affected source, the owner/operator may decrease the frequency of performance testing from semi- annually to annually for that affected source. If visible emissions are observed during any annual performance test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six (6) consecutive monthly tests. (iv) If visible emissions are observed during any Method 22 performance test, of Appendix A-7 to 40 CFR 60, the owner/operator must conduct 30 minutes of opacity observations, recorded at 15-second intervals, in accordance with Method 9 of Appendix A-4 to 40 CFR 60. The Method 9 performance test, of Appendix A-4 to 40 CFR 60, must begin within one (1) hour of any observation of visible emissions. (v) If visible emissions from a building are monitored, the requirements of paragraphs (i) through (iv) of this Condition apply to the monitoring of the building, and the owner/operator must also test visible emissions from each side, roof, and vent of the building for at least ten (10) minutes. [R307-401] II.B.2 Roads and Fugitive Dust Requirements: II.B.2.a Paved roads and operational areas shall be swept and/or water sprayed to minimize fugitive dusts as dry conditions warrant or as determined necessary by the Director to maintain opacity limits listed in this AO. [R307-401] II.B.2.b All unpaved roads and other unpaved operational areas that are used by mobile equipment shall be water sprayed and/or chemically treated to control fugitive dust. The application of water or chemical treatment shall be used. Treatment shall be of sufficient frequency and quantity to maintain the surface material in a damp/moist condition unless it is below freezing. If chemical treatment is to be used, the plan must be approved by the Director. Records of water and/or chemical treatment shall be kept for all periods when the plant is in operation. The records shall include the following items: Instances of water and/or chemical application to unpaved areas shall be recorded and maintained by the owner/operator. The ambient temperature shall be recorded any time water should be applied but cannot due to freezing conditions. [R307-401-8] DAQE-IN103030033-24 Page 16 II.B.2.c Water sprays or chemical dust suppression sprays shall be installed at the following points to control fugitive emissions: A. Hopper at the primary crusher B. Material belt feeding the stacker C. Limestone bypass screen/ conveyor drops The sprays shall operate whenever dry conditions warrant meeting the required opacity limitations or as determined necessary by the Director. Water sprays shall not be required during periods of freezing temperatures. [R307-401-8] II.B.2.d All disturbed surfaces not involved with operations shall be stabilized to minimize generation of fugitive dusts as dry conditions warrant or as determined necessary by the Director. [R307-401-8] II.B.3 Continuous Emission Monitoring Requirements: II.B.3.a The owner/operator shall install, calibrate, maintain and continuously operate a continuous emissions monitoring system on the Kiln 1/raw mill stack and clinker cooler. The owner/ operator shall record the output of the system: including the quantity of NOx and CO emissions at the kiln stack. For the NOx mass emission limits, during any time when the CEMS are inoperable and otherwise not measuring emissions of NOx from the kiln, the owner/operator shall apply the missing data substitution procedures used by the UDAQ or the missing data substitution procedures in 40 CFR Part 75, Subpart D, whichever is deemed appropriate by the UDAQ. In calculating the 30-day rolling average emission rate, the total pounds of NOx emitted during a specified period shall include all kiln emissions that occur during the specified period including during each startup, shutdown, or malfunction. The monitoring system shall comply with all applicable sections of R307-170, UAC; and 40 CFR 60, Appendix B. A Total Hydrocarbons (THC) and Oxygen (O2) CEMs shall be installed on Kiln 1. A mercury (Hg) CEM or integrated sorbent trap monitoring system shall be installed on Kiln 1. A HCl CEM shall be installed on Kiln 1. Except for system breakdown, repairs, calibration checks, and zero and span adjustments required under paragraph (d) 40 CFR 60.13, the owner/operator of an affected source shall continuously operate all required continuous monitoring devices and shall meet minimum frequency of operation requirements as outlined in 40 CFR 60.13 and Section UAC R307-170. [40 CFR 63 Subpart LLL, R307-170] II.B.3.b The owner/operator shall install and operate a PM CPMS on the Kiln 1/Raw Mill and clinker cooler stacks in accordance with the requirements of 40 CFR 63.1350 (b) and (d). Except during periods of CPMS breakdowns, repairs, calibration checks, and zero span adjustments, the PM CPMS shall be operated at all times of kiln operation. The owner/operator shall use a PM CPMS to establish a Site-Specific Operating Limit (SSOL) for PM corresponding to the results of the performance test demonstrating compliance with the filterable PM limit and using the methodology in 40 CFR 63.1349(b). The owner/operator shall reassess and adjust the SSOL developed in accordance with the results of the most recent PM performance test demonstrating compliance with the PM emission limit. The owner/operator shall use the PM CPMS to demonstrate continuous compliance with the SSOL in accordance with the requirements of 40 CFR 63.1350(b)(1). [40 CFR 63 Subpart LLL] DAQE-IN103030033-24 Page 17 II.B.4 Fuel Limitations: II.B.4.a The owner/operator shall use only the following fuels in the kiln and pre-calciner: A. Coal B. Diaper Derived Fuel (DDF) C. Tire Derived Fuel (TDF) D. Natural Gas E. Coke F. Fuel Oil G. Used Oil fuel H. Synthetic Fuel I. Wood J. Coal Additives as defined in Condition II.B.4.b The maximum TDF consumption shall not exceed 15% of the combined total energy input to the rotary kiln and pre-calciner. This shall be verified on a rolling 12-month basis by examination of the fuel use totals and their respective heating values. If any other fuel is to be used, an AO shall be required in accordance with R307-401, UAC. [R307-401] II.B.4.b The coal additives listed above shall consist of alternative fuels approved by the Director. Prior to burning any proposed coal additive, the owner/operator shall obtain approval from the Director. To obtain approval, the owner/operator shall submit Material Safety Data Sheets (MSDS) or the results of suitable tests giving data similar to a Proximate and Ultimate analysis of the proposed coal additive. [R307-401-8] II.B.4.b.1 Approval by the Director shall consist of a letter approving the use of the proposed coal additive. Approval is not required to change from one (1) previously-approved coal additive to another previously-approved coal additive. [R307-401-8] II.B.4.b.2 The average quantity of coal additives burned shall not be greater than 15% of the total daily heat input of the kiln and precalciner. The owner/operator may increase the average quantity of coal additives up to 25% of the total daily heat input of the kiln and precalciner upon approval by the Director in accordance with the approval process described in Condition II.B.4.b. [R307-401-8] II.B.4.c The sulfur content of any coal, oil, or mixture thereof, burned in any fuel burning or process installation not covered by New Source Performance Standards for sulfur emissions or covered elsewhere in this AO, shall contain no more than 1.0-pound sulfur per million gross Btu heat input for any mixture of coal nor 0.85 pounds sulfur per million gross Btu heat input for any oil except used oil. The sulfur content shall comply with all applicable sections of UAC R307-203. [R307-203, R307-401-8] DAQE-IN103030033-24 Page 18 II.B.4.c.1 Certification of fuels shall be either by the owner/operator's own testing or test reports from the fuel marketer. Records of each fuel supplier's test report on sulfur content shall be available onsite. Methods for determining sulfur content of coal and fuel oil shall be those methods of the American Society for Testing and Materials, UAC R307-203-1 (4) A. For determining sulfur content in coal, ASTM Methods D3177-75 or D4239-85 are to be used. B. For determining sulfur content in oil, ASTM Methods D2880-71 or D4294-89 are to be used. C. For determining the gross calorific (or Btu) content of coal, ASTM Methods D2015-77 or D3286-85 are to be used. [R307-203] II.B.4.d The concentration/parameters of contaminants in any used oil fuel shall not exceed the following levels: 1) Arsenic 5 ppm by weight 2) Barium 100 ppm by weight 3) Cadmium 2 ppm by weight 4) Chromium. 10 ppm by weight 5) Lead 100 ppm by weight 6) Total halogens 1,000 ppm by weight 7) Sulfur 0.5 percent by weight A. The flash point of all used oil to be burned shall not be less than 100oF. B. The owner/operator shall provide test certification for each load of used oil fuel received. Certification shall be either by their own testing or test reports from the used oil fuel marketer. Records of used oil fuel consumption and the test reports shall be kept for all periods when the plant is in operation. C. Used oil that does not exceed any of the listed contaminants content may be burned. The owner/operator shall record the quantities of oil burned on a daily basis. D. Any used oil fuel that contains more than 1000 ppm by weight of total halogens shall be considered a hazardous waste and shall not be burned in the kiln/preheater. The oil shall be tested for halogen content by ASTM Method D- 808-81, EPA Method 8240 or Method 8260 before used oil fuel is transferred to the burn tank and burned. [R307-401-8] DAQE-IN103030033-24 Page 19 II.B.4.e The following operating parameters shall be met at all times when used oil or TDF is burned in the rotary kiln: A. Combustion gas temperature at the rotary kiln exit - no less than 1500oF for more than five (5) minutes in any 60-minute period. B. Oxygen content at the kiln system ID fan - no less than 2% for more than five (5) minutes in any 60-minute period. [R307-401-8] II.B.4.e.1 The temperature and oxygen content shall both be monitored with equipment approved by the Director. The calibration procedure and frequency shall be according to manufacturer's specifications. Use of factory-calibrated thermocouples for temperature measurement is approved. However, any other method of temperature measurement must be approved by the Director prior to use. The monitoring equipment for both temperature and oxygen content shall be located such that an inspector can at any time safely read the output. [R307-401-8] PERMIT HISTORY This Approval Order shall supersede (if a modification) or will be based on the following documents: Supersedes AO DAQE-AN103030030-22 dated April 20, 2022 Is Derived From Source Submitted NOI dated June 13, 2023 Incorporates Additional Information Received dated January 9, 2024 Incorporates Additional Information Received dated January 10, 2024 Incorporates Additional Information Received dated January 17, 2024 DAQE-IN103030033-24 Page 20 ACRONYMS The following lists commonly used acronyms and associated translations as they apply to this document: 40 CFR Title 40 of the Code of Federal Regulations AO Approval Order BACT Best Available Control Technology CAA Clean Air Act CAAA Clean Air Act Amendments CDS Classification Data System (used by Environmental Protection Agency to classify sources by size/type) CEM Continuous emissions monitor CEMS Continuous emissions monitoring system CFR Code of Federal Regulations CMS Continuous monitoring system CO Carbon monoxide CO2 Carbon Dioxide CO2e Carbon Dioxide Equivalent - Title 40 of the Code of Federal Regulations Part 98, Subpart A, Table A-1 COM Continuous opacity monitor DAQ/UDAQ Division of Air Quality DAQE This is a document tracking code for internal Division of Air Quality use EPA Environmental Protection Agency FDCP Fugitive dust control plan GHG Greenhouse Gas(es) - Title 40 of the Code of Federal Regulations 52.21 (b)(49)(i) GWP Global Warming Potential - Title 40 of the Code of Federal Regulations Part 86.1818- 12(a) HAP or HAPs Hazardous air pollutant(s) ITA Intent to Approve LB/YR Pounds per year MACT Maximum Achievable Control Technology MMBTU Million British Thermal Units NAA Nonattainment Area NAAQS National Ambient Air Quality Standards NESHAP National Emission Standards for Hazardous Air Pollutants NOI Notice of Intent NOx Oxides of nitrogen NSPS New Source Performance Standard NSR New Source Review PM10 Particulate matter less than 10 microns in size PM2.5 Particulate matter less than 2.5 microns in size PSD Prevention of Significant Deterioration PTE Potential to Emit R307 Rules Series 307 R307-401 Rules Series 307 - Section 401 SO2 Sulfur dioxide Title IV Title IV of the Clean Air Act Title V Title V of the Clean Air Act TPY Tons per year UAC Utah Administrative Code VOC Volatile organic compounds Millard County Chronicle Progress Publication Name: Millard County Chronicle Progress Publication URL: Publication City and State: Delta, UT Publication County: Millard Notice Popular Keyword Category: Notice Keywords: leamington Notice Authentication Number: 202404251117366766567 3429962642 Notice URL: Notice: Ash Grove Cement Company Back Notice Publish Date: Wednesday, February 14, 2024 Notice Content A Notice of Intent for the following project submitted in accordance with R307-401-1, Utah Administrative Code (UAC), has been received for consideration by the Director: Company Name: Ash Grove Cement Company Location: Ash Grove Cement Company - Leamington Cement Plant – Hwy 132, Leamington, UT Project Description: On June 13, 2023, Ash Grove Cement Company (Ash Grove) submitted a Notice of Intent for the Leamington Plant to obtain an updated AO. Ash Grove is proposing to install two (2) natural gas emergency generators and to replace its emergency shipping generator. Two (2) stockpiles will also be added under this project, as will associated increases in truck traffic and material handling operations. This project will be classified as a minor modification of the Leamington Plant's existing AO. In addition, Ash Grove has requested that this project be reviewed as an enhanced Approval Order for incorporation into its Title V permit. The completed engineering evaluation and air quality impact analysis showed the proposed project meets the requirements of federal air quality regulations and the State air quality rules. The Director intends to issue an Approval Order pending a 30-day public comment period. The project proposal, estimate of the effect on local air quality and draft Approval Order are available for public inspection and comment at the Utah Division of Air Quality, 195 North 1950 West, Salt Lake City, UT 84116. Written comments received by the Division at this same address on or before March 15, 2024 will be considered in making the final decision on the approval/disapproval of the proposed project. 4/25/24, 10:17 AM utahlegals.com/(S(pyh4tfgc0phwawse35mfmg1j))/DetailsPrint.aspx?SID=pyh4tfgc0phwawse35mfmg1j&ID=178726 https://www.utahlegals.com/(S(pyh4tfgc0phwawse35mfmg1j))/DetailsPrint.aspx?SID=pyh4tfgc0phwawse35mfmg1j&ID=178726 1/2 Email comments will also be accepted at jjenks@utah.gov. If anyone so requests to the Director in writing within 15 days of publication of this notice, a hearing will be held in accordance with R307-401-7, UAC. Under Section 19-1-301.5, a person who wishes to challenge a Permit Order may only raise an issue or argument during an adjudicatory proceeding that was raised during the public comment period and was supported with sufficient information or documentation to enable the Director to fully consider the substance and significance of the issue. Published in the Millard County Chronicle Progress February 14, 2024. Back 4/25/24, 10:17 AM utahlegals.com/(S(pyh4tfgc0phwawse35mfmg1j))/DetailsPrint.aspx?SID=pyh4tfgc0phwawse35mfmg1j&ID=178726 https://www.utahlegals.com/(S(pyh4tfgc0phwawse35mfmg1j))/DetailsPrint.aspx?SID=pyh4tfgc0phwawse35mfmg1j&ID=178726 2/2 DAQE-NN103030033-24 February 12, 2024 Millard County Chronicle Progress Legal Advertising Dept P.O. Box 249 Delta (Millard), UT 84624 RE: Legal Notice of Intent to Approve This letter will confirm the authorization to publish the attached NOTICE in the Millard County Chronicle Progress on February 14, 2024. Please mail the invoice and affidavit of publication to the Utah State Department of Environmental Quality, Division of Air Quality, P.O. Box 144820, Salt Lake City, Utah 84114-4820. If you have any questions, contact Jeree Greenwood, who may be reached at (385) 306-6514. Sincerely, {{$s }} Jeree Greenwood Office Technician Enclosure cc: Six County Association of Governments cc: Juab County 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801) 536-4099 • T.D.D. (801) 903-3978 www.deq.utah.gov Printed on 100% recycled paper State of Utah SPENCER J. COX Governor DEIDRE HENDERSON Lieutenant Governor Department of Environmental Quality Kimberly D. Shelley Executive Director DIVISION OF AIR QUALITY Bryce C. Bird Director DAQE-NN103030033-24 Page 2 NOTICE A Notice of Intent for the following project submitted in accordance with R307-401-1, Utah Administrative Code (UAC), has been received for consideration by the Director: Company Name: Ash Grove Cement Company Location: Ash Grove Cement Company - Leamington Cement Plant – Hwy 132, Leamington, UT Project Description: On June 13, 2023, Ash Grove Cement Company (Ash Grove) submitted a Notice of Intent for the Leamington Plant to obtain an updated AO. Ash Grove is proposing to install two (2) natural gas emergency generators and to replace its emergency shipping generator. Two (2) stockpiles will also be added under this project, as will associated increases in truck traffic and material handling operations. This project will be classified as a minor modification of the Leamington Plant's existing AO. In addition, Ash Grove has requested that this project be reviewed as an enhanced Approval Order for incorporation into its Title V permit. The completed engineering evaluation and air quality impact analysis showed the proposed project meets the requirements of federal air quality regulations and the State air quality rules. The Director intends to issue an Approval Order pending a 30-day public comment period. The project proposal, estimate of the effect on local air quality and draft Approval Order are available for public inspection and comment at the Utah Division of Air Quality, 195 North 1950 West, Salt Lake City, UT 84116. Written comments received by the Division at this same address on or before March 15, 2024 will be considered in making the final decision on the approval/disapproval of the proposed project. Email comments will also be accepted at jjenks@utah.gov. If anyone so requests to the Director in writing within 15 days of publication of this notice, a hearing will be held in accordance with R307-401-7, UAC. Under Section 19-1-301.5, a person who wishes to challenge a Permit Order may only raise an issue or argument during an adjudicatory proceeding that was raised during the public comment period and was supported with sufficient information or documentation to enable the Director to fully consider the substance and significance of the issue. Date of Notice: February 14, 2024 {{#s=Sig_es_:signer1:signature}} DAQE- RN103030033 January 24, 2024 Paul Pederson Ash Grove Cement Company P.O. Box 38069 Leamington, UT 84638 cody.watkins@ashgrove.com Dear Paul Pederson, Re: Engineer Review: Modification of Approval Order DAQE-AN103030030-22 to Install New Generators Project Number: N103030033 Please review and sign this letter and attached Engineer Review (ER) within 10 business days. For this document to be considered as the application for a Title V administrative amendment, a Title V Responsible Official must sign the next page. Please contact John Jenks at (385) 306-6510 if you have any questions or concerns about the ER. If you accept the contents of this ER, please email this signed cover letter to John Jenks at jjenks@utah.gov. After receipt of the signed cover letter, the DAQ will prepare an Intent to Approve (ITA) for a 30-day public comment period. When the public comment period ends, the DAQ will consider any comments received and will issue the Approval Order. If you do not respond to this letter within 10 business days, the project will move forward without your approval. If you have concerns that we cannot resolve, the DAQ Director may issue an Order prohibiting construction. Approval Signature _____________________________________________________________ (Signature & Date) 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801) 536-4099 • T.D.D. (801) 903-3978 www.deq.utah.gov Printed on 100% recycled paper Department of Environmental Quality Kimberly D. Shelley Executive Director DIVISION OF AIR QUALITY Bryce C. Bird Director State of Utah SPENCER J. COX Governor DEIDRE HENDERSON Lieutenant Governor Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 1 OPTIONAL: In order for this Engineer Review and associated Approval Order conditions to be considered as an application to administratively amend your Title V Permit, the Responsible Official, as defined in R307-415-3, must sign the statement below. THIS IS STRICTLY OPTIONAL. If you do not want the Engineer Review to be considered as an application to administratively amend your Operating Permit only the approval signature above is required. Failure to have the Responsible Official sign below will not delay the Approval Order, but will require submittal of a separate Operating Permit Application to revise the Title V permit in accordance with R307-415-5a through 5e and R307-415-7a through 7i. A guidance document: Title V Operating Permit Application Due Dates clarifies the required due dates for Title V operating permit applications and can be viewed at: https://deq.utah.gov/air-quality/permitting-guidance-and-guidelines-air-quality “Based on information and belief formed after reasonable inquiry, I certify that the statements and information provided for this Approval Order are true, accurate and complete and request that this Approval Order be considered as an application to administratively amend the Operating Permit.” Responsible Official _________________________________________________ (Signature & Date) Print Name of Responsible Official _____________________________________ Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 2 UTAH DIVISION OF AIR QUALITY ENGINEER REVIEW SOURCE INFORMATION Project Number N103030033 Owner Name Ash Grove Cement Company Mailing Address P.O. Box 38069 Leamington, UT, 84638 Source Name Ash Grove Cement Company- Leamington Cement Plant Source Location Hwy 132 Leamington, UT 84638 UTM Projection 397000 m Easting, 4380100 m Northing UTM Datum NAD83 UTM Zone UTM Zone 12 SIC Code 3241 (Cement, Hydraulic) Source Contact Cody Watkins Phone Number (385) 225-0615 Email cody.watkins@ashgrove.com Billing Contact Cody Watkins Phone Number 385.225.0615 Email cody.watkins@ashgrove.com Project Engineer John Jenks, Engineer Phone Number (385) 306-6510 Email jjenks@utah.gov Notice of Intent (NOI) Submitted June 12, 2023 Date of Accepted Application September 15, 2023 Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 3 SOURCE DESCRIPTION General Description Ash Grove Cement Company operates the Leamington cement manufacturing plant in Juab County, Utah. Cement is produced when inorganic raw materials, primarily limestone (quarried on site), are correctly proportioned, ground and mixed, and then fed into a rotating kiln. The kiln alters the materials and recombines them into small stones called cement clinker. The clinker is cooled and ground with gypsum and additional limestone into a fine powdered cement. The final product is stored on site for later shipping. The major sources of air emissions are from the combustion of fuels for the kiln operation, from the kiln, and from the clinker cooling process. The Leamington cement plant is a major source for emissions of PM2.5, PM10, NOx, SO2, CO, HAPs and GHG. NSR Classification: Minor Modification at Major Source Source Classification Located in Attainment Area, Millard County Airs Source Size: A Applicable Federal Standards NSPS (Part 60), A: General Provisions NSPS (Part 60), Y: Standards of Performance for Coal Preparation and Processing Plants NSPS (Part 60), OOO: Standards of Performance for Nonmetallic Mineral Processing Plants NSPS (Part 60), IIII: Standards of Performance for Stationary Compression Ignition Internal Combustion Engines NSPS (Part 60), JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines MACT (Part 63), A: General Provisions MACT (Part 63), LLL: National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry MACT (Part 63), ZZZZ: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines Title V (Part 70) Major Source Project Proposal Modification of Approval Order DAQE-AN103030030-22 to Install New Generators Project Description On June 13, 2023, Ash Grove submitted a NOI for the Leamington Plant to obtain an updated AO. Ash Grove is proposing to install two natural gas emergency generators and to replace its emergency shipping generator. Two stockpiles will also be added under this project, as will associated increases in truck traffic and material handling operations. This project will be a minor modification of the Leamington Plant's existing AO. In addition, Ash Grove has requested that this project be reviewed as an enhanced AO for incorporation into its Title V permit. EMISSION IMPACT ANALYSIS The emissions from this project are well below the modeling thresholds in R307-410-4 and R307-410-5. No modeling is required. [Last updated December 13, 2023] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 4 SUMMARY OF EMISSIONS The emissions listed below are an estimate of the total potential emissions from the source. Some rounding of emissions is possible. Criteria Pollutant Change (TPY) Total (TPY) CO2 Equivalent 0 1.00 Carbon Monoxide 0.13 13045.00 Lead Compounds 0 0.04 Nitrogen Dioxide -0.35 1351.44 Particulate Matter - PM10 1.57 236.36 Particulate Matter - PM2.5 0.39 230.74 Sulfur Dioxide -0.10 192.40 Volatile Organic Compounds 0 59.38 Hazardous Air Pollutant Change (lbs/yr) Total (lbs/yr) Benzene (Including Benzene From Gasoline) (CAS #71432) 0 1500 Beryllium (TSP) (CAS #7440417) 0 1 Chromium Compounds (CAS #CMJ500) 0 135 Dioxin/Furan Toxic Equivalents: 2,3,7,8-Tetrachlorodibenzo-P- Dioxin (CAS #1746016) 0 2 Formaldehyde (CAS #50000) 0 18755 Hydrochloric Acid (Hydrogen Chloride) (CAS #7647010) 0 41640 Lead Compounds (CAS #LCT000) 0 72 Mercury (TSP) (CAS #7439976) 0 53 Naphthalene (CAS #91203) 0 1600 Selenium (TSP) (CAS #7782492) 0 200 Change (TPY) Total (TPY) Total HAPs 0 31.98 Note: Change in emissions indicates the difference between previous AO and proposed modification. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 5 Review of BACT for New/Modified Emission Units 1. BACT review regarding new diesel emergency generator Ash Grove prepared a BACT analysis for the diesel-fired emergency generator following the typical top-down approach. Step 1 - Identify All Control Technologies Available control technologies for diesel-fired, non-emergency engines include the following: Limited Hours of Operation; Good Combustion Practices; Use of a Tier Certified Engine; Engine Design; Diesel Particulate Filter; Ultra-Low Sulfur Fuel; Diesel Oxidation Catalyst; and Selective Catalyst Reduction (SCR). Step 2 - Eliminate Technically Infeasible Control Options Limited Hours of Operation One method to control the emissions of all pollutants released from a non-emergency engine is to limit the hours of operation. The engine proposed for installation will be for emergency use only (except for periodic readiness testing). Per New Source Performance Standards (NSPS) Subpart IIII, these operations are limited to 100 hours per year. Limited Hours of Operation is technically feasible. Good Combustion Practices Good combustion practices refer to the operation of engines at high combustion efficiency, which reduces the products of incomplete combustion. The proposed emergency engine is designed to achieve maximum combustion efficiency. The manufacturer is able to provide operation and maintenance manuals that detail the required methods to achieve the highest levels of combustion efficiency. Good combustion practices are technically feasible. Use of an Appropriate Tier Certified Engine EPA noted that non-road engines were a significant source of emissions and began adopting emission standards for these emission units in 1994. Today, engines are required to meet certain emission limits, or tier ratings, based on the size and model year. Ash Grove's proposed emergency generator engine meets EPA Tier III certification requirements. This control approach is technically feasible. Diesel Particulate Filters This simple technology constitutes a filter placed in the exhaust pathway to prevent the release of PM. These may be coated with a catalyst to further capture hydrocarbon emissions. EPA is concerned with the installation of a catalyzed particulate filter, citing technical issues, including the fact that many older engines are not electronically controlled, PM emissions are often too high for efficient operation, and, in some cases, engine exhaust temperatures are not high enough for filter substrate regeneration. While a catalytic diesel particulate filter is not technically feasible, a simple particulate filter will be evaluated. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 6 Ultra-Low Sulfur Diesel Ultra-low sulfur diesel (ULSD) contains less than 0.0015% sulfur by weight. The reduced sulfur content of ULSD reduces the production of SO2 emissions. Additionally, its low sulfur content results in a lower potential for aggregation of sulfur-containing compounds and thus reduces PM2.5 emissions. Ash Grove will continue the use of ULSD fuel for this diesel fired engine as regulated by Title V. Diesel Oxidation Catalyst A diesel oxidation catalyst (DOC) utilizes a catalyst such as platinum or palladium to further oxidize an engine's exhaust, which includes hydrocarbons (HC) (e.g., VOC), carbon dioxide (CO2), and water. Use of a DOC can result in an approximately 90 percent reduction in HC/VOC emissions.9 In addition to controlling HC/VOC, a DOC also has the potential to reduce PM emissions by 30 percent (based on the concentration of soluble organics) and CO emissions by 50 percent if low sulfur diesel fuel is used. The use of a DOC reduces the effective power output of RICE and results in a solid waste stream. However, for the purposes of identifying technical feasibility, no formal consideration of these adverse energy and environmental impacts is presented. A DOC is technically feasible and is further considered for BACT. [Last updated December 13, 2023] 2. BACT review regarding new diesel emergency generator (cont.) Selective Catalytic Reduction Selective catalytic reduction (SCR) systems introduce a liquid reducing agent such as ammonia or urea into an engine's flue-gas stream prior to a catalyst. The catalyst reduces the temperature needed to initiate the reaction between the reducing agent and NOx to form nitrogen and water. For SCR systems to function effectively, exhaust temperatures must be high enough (250oC to 427oC) to enable catalyst activation, which will be accounted for in operation. For this reason, SCR control efficiencies are expected to be relatively low during the first twenty to thirty (20 - 30) minutes after engine start up, especially during maintenance and testing. There are also complications controlling the excess ammonia (ammonia slip) from SCR use. Since add-on SCR to a Tier 3 engine is anticipated to have a relatively low combustion efficiency during maintenance and testing, SCR is not technically feasible for emergency units. Step 3 - Rank Remaining Control Technologies by Control Effectiveness Effective control technologies for diesel engines include limited hours of operation, good combustion practices, use of tier-certified engines, diesel particulate filters, ultra-low sulfur diesel, and DOCs. All control technologies considered effective are currently implemented with the exception of the use of diesel particulate filters and DOCs. Both technologies result in significant emission reductions and are further evaluated to determine the economic feasibility of implementation. Step 4 - Evaluate Most Effective Controls and Document Results When reviewing the implementation and costs associated with installing DOC controls for an emergency-use or intermittent-use engine, Ash Grove found that "[b]ecause these engines are typically used only a few number of hours per year.[s]uch engines rarely if ever use the [diesel oxidation catalyst] type of emission controls." Additionally, in its 2010 MACT/GACT evaluation for engines, EPA concluded for emergency engines: "Because these engines are typically used only Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 7 a few number of hours per year [(27 hours per year per NFPA codes)], the costs of emission control are not warranted when compared to the emission reductions that would be achieved." Based on EPA's assessment and the fact that the RBLC contains no records of DOC installation on emergency-use or non-road engines, its installation is eliminated from consideration as BACT. EPA gathered cost estimates for installing a diesel particulate filter when reviewing NESHAP ZZZZ and NSPS IIII and JJJJ, and determined the costs to be excessive. EPA determined that the cost per ton of PM reduced from engines between 700 and 1,200 hp was over $715,000 in 2006. EPA concluded that the installation of a diesel particulate filter was only required for the operation of non-emergency engines as documented in NESHAP Subpart ZZZZ; therefore, this technology is not further considered. Step 5 - Select BACT The diesel-fired emergency generator engine proposed to be installed on-site will be an EPA Tier III Certified engine. Additionally, the emergency generator engine will be operated and maintained in accordance with good combustion practices and combust only ultra-low sulfur diesel. The hours of operation are restricted to 100 hours for maintenance and testing per year. [Last updated December 13, 2023] 3. BACT review regarding natural gas emergency generators As with the diesel generators, Ash Grove also submitted a top-down analysis for the two new natural gas-fired emergency generators. Step 1 - Identify All Control Technologies Available control technologies for natural gas-fired emergency generator engines include the following: Limited Hours of Operation; Routine Maintenance; Good Combustion Practices; Use of Natural Gas; Lean Burn Technology; Selective Catalytic Reduction (SCR); and Non-Selective Catalytic Reduction (NSCR). Step 2 - Eliminate Technically Infeasible Options Limited Hours of Operation One available way to control the emissions of all pollutants released from a natural gas-fired emergency generator engine is to limit the hours of operation for the equipment. Under NSPS Subpart JJJJ, only 100 hours of operation for maintenance and testing are allowed for generators designated as emergency. It is conservatively estimated that the emergency generators will run for no more than 100 hours per year for testing and maintenance. This option is technically feasible. Routine Maintenance Routine maintenance ensures that an engine is working properly and as efficiently as possible, which, in turn, helps reduce emissions. For spark ignition internal combustion engines, 40 CFR 60 Subpart JJJJ requires that owners and operators of EPA-certified engines operating and maintain the engine consistent with the manufacturer's emissions-related written instructions. Routine maintenance is technically feasible. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 8 Good Combustion Practices Good combustion practices refer to the operation of engines at high combustion efficiency, which reduces the products of incomplete combustion. The proposed natural gas-fired emergency generator engines at the Ash Grove Facility are designed to achieve maximum combustion efficiency. The manufacturer will provide operation and maintenance manuals that detail the required methods to achieve the highest levels of combustion efficiency for the proposed unit. Use of good combustion practices is technically feasible. Use of Natural Gas Natural gas is the cleanest available fossil fuel and is a highly efficient form of energy. It is composed mainly of methane and its combustion results in less PM2.5, PM10, NOx, and SO2 in comparison to other fossil fuels. Use of natural gas for the proposed emergency generator engines is technically feasible. Lean Burn Technology With lean burn combustion technology, excess air is introduced into the engine along with the fuel. In lean burn engines, the air-to-fuel ratio may be as lean as 65:1 by mass. Excess air, in turn, reduces the temperature of the combustion process and combusts more of the fuel which ultimately can result in fewer hydrocarbons being emitted. However, when equipped with a three-way catalyst, rich burn engines can have lower emissions than lean burn engines. Although lean burn technology is technically feasible, pursuant to Table 1 of 40 CFR Part 60 Subpart JJJJ, a rich burn engine is certified to the same NOX, CO, and VOC emissions standards as a lean burn engine. In addition, based on emission factors from AP-42 Section 3.2, emissions of certain HAPs, including formaldehyde, are expected to be lower for a rich burn engine than a lean burn engine. Lean burn technology is not anticipated to provide additional emissions reduction benefits and is therefore not further considered. Selective Catalytic Reduction SCR systems introduce a liquid-reducing agent, such as ammonia or urea, into the flue gas stream prior to a catalyst. The catalyst reduces the temperature needed to initiate the reaction between the reducing agent and NOX to form nitrogen and water. [Last updated December 13, 2023] 4. BACT review regarding natural gas emergency generators (cont.) For SCR systems to function effectively, exhaust temperatures must be high enough (200oC to 500oC) to enable catalyst activation. For this reason, SCR control efficiencies are expected to be relatively low during the first 20 to 30 minutes after engine start up, especially during maintenance and testing. Generally, engine loads during maintenance and testing for emergency engines are very low, which also reduces exhaust temperatures, resulting in low SCR control efficiencies. Controlling the excess ammonia (ammonia slip) from SCR use can also be difficult. Although SCR has been implemented on large (greater than one [1] megawatt [MW]) diesel-fired emergency generators, it has not been demonstrated on smaller emergency engines or natural gas-fired units. Since SCR is anticipated to have a relatively low control efficiency during maintenance and testing due to short periods of operation, low loads, and frequent starts/stops, implementing SCR technology for the emergency engines is not technically feasible. Nonselective Catalytic Reduction NSCR is an add-on NOX control technology for exhaust streams with low oxygen content. NSCR uses a catalyst reaction to simultaneously reduce NOX, CO, and hydrocarbon to water, carbon dioxide, and nitrogen. The catalyst is usually a noble metal. NSCR can have some of the same operational issues as an SCR. This technology has been demonstrated on prime-power, rich-burn engines by the TCEQ and the BAAQMD. However, neither the TCEQ nor the BAAQMD, nor any Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 9 of the other sources reviewed for this BACT analysis have recorded its use on emergency generators. As these generators will be used strictly for emergency use, the addition of an NSCR is technically infeasible. Step 3 - Rank Remaining Control Technologies by Control Effectiveness All remaining control options are variable in their control efficiency. Thus all options will be evaluated further. Step 4 - Evaluate Most Effective Controls and Document Results Effective control technologies for natural gas-fired engines include the use of limited hours of operation, routine maintenance, good combustion practices, and use of natural gas. All control technologies considered feasible at this time will be implemented for the proposed generator engines. Step 5 - Select BACT Ash Grove proposes that BACT for the natural gas-fired emergency generator engines is to operate and maintain the engine in accordance with good combustion practices, which will include routine maintenance being performed on the units in accordance with the NSPS Subpart JJJJ requirements and combusting only natural gas. The hours of operation will be limited to 100 hours per year for maintenance and testing in accordance with NSPS Subpart JJJJ and RICE NESHAP. [Last updated December 13, 2023] SECTION I: GENERAL PROVISIONS The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. (New or Modified conditions are indicated as “New” in the Outline Label): I.1 ~IND~All definitions, terms, abbreviations, and references used in this AO conform to those used in the UAC R307 and 40 CFR. Unless noted otherwise, references cited in these AO conditions refer to those rules. [R307-101] I.2 ~IND~The limits set forth in this AO shall not be exceeded without prior approval. [R307- 401] I.3 ~IND~Modifications to the equipment or processes approved by this AO that could affect the emissions covered by this AO must be reviewed and approved. [R307-401-1] I.4 ~IND~All records referenced in this AO or in other applicable rules, which are required to be kept by the owner/operator, shall be made available to the Director or Director's representative upon request, and the records shall include the two-year period prior to the date of the request. Unless otherwise specified in this AO or in other applicable state and federal rules, records shall be kept for a minimum of two (2) years. [R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 10 I.5 ~IND~At all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any equipment approved under this AO, including associated air pollution control equipment, in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on information available to the Director which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. All maintenance performed on equipment authorized by this AO shall be recorded. [R307- 401-4] I.6 ~IND~The owner/operator shall comply with UAC R307-107. General Requirements: Breakdowns. [R307-107] I.7 ~IND~The owner/operator shall comply with UAC R307-150 Series. Emission Inventories. [R307-150] I.8 ~IND~The owner/operator shall submit documentation of the status of installation of the new generators to the Director within 18 months from the date of this AO. This AO may become invalid if construction is not commenced within 18 months from the date of this AO or if construction is discontinued for 18 months or more. To ensure proper credit when notifying the Director, send the documentation to the Director, attn.: NSR Section. [R307-401-18] SECTION II: PERMITTED EQUIPMENT The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. (New or Modified conditions are indicated as “New” in the Outline Label): II.A THE APPROVED EQUIPMENT II.A.1 Leamington Cement Plant II.A.2 Quarry: Quarry Operations Rock drilling operations, truck hauling, and storage piles. II.A.3 NEW Stockpiles Coal storage Area: 1 acre Annual throughput 20,000 tpy AF stockpile Area: 0.25 acre Annual throughput 8,000 tpy II.A.4 211.BF1: Stationary Crusher Stationary crusher with an approximate production rate of 1,000 tons per hour, for reduction of quarried material to 3-inch minus sized material. The crusher is equipped with a 20,000 acfm baghouse and with water sprays on the feed hopper. (pre-1983) Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 11 II.A.5 211.BF2: Raw Material Transfer Crushed material is transported to raw material storage by belt B8. The raw material transfers at the end of conveyor B8 prior to loading into raw material reclaim area. The conveyor transfer point is equipped with a baghouse 1,500 acfm total airflow, 216 ft2 total filter area & water sprays. (pre-1983) II.A.6 Material Handling Conveyor belt systems, secondary feeders and screens, stacker system II.A.7 Portable Crusher Portable unit, not a stationary source, no unit specific requirements II.A.8 311.BC1: Belt Conveyor Transfer Baghouse Located prior to raw materials processing, this baghouse (141 ft2 filter area; 1,800 acfm total air flow) controls emissions from the conveyor belt that transfers the stacked material to the raw material silos. II.A.9 315.SX1 thru 4: Raw Material Silos Raw materials such as limestone, silica, iron, and shale are stored in one of four silos. The four silos are equipped with one common Fuller, plenum pulse baghouse - 1,689 ft2 filter area; 9,865 acfm total air flow controlling particulates from stack C125 (raw storage) . II.A.10 315.BF2: Fifth Component Silo Raw materials are stored in a silo. This silo is equipped with a BHA, pulse jet baghouse - 844 ft2 filter area; 3,500 acfm total air flow. II.A.11 316.BF1 thru 5: Raw Mill Recirculation Larger particles are removed from the raw mill, recirculated, and re-introduced into the raw mill feed. This system includes vibrating feeders, a conveyor system, and surge bin. Emissions are controlled by five equivalent baghouses (316.BF1, 316.BF2, 316.BF3, 316.BF4, 316.BF5) - each is a DCE Inc. Model DLM V15/15F with 1,000 acfm and 6.21:1 A/C ratio. II.A.12 316.BF6: Cross-Belt Analyzer Used for quality control. Emissions are controlled by a 1,400 acfm baghouse. II.A.13 317.BF3: Kiln & Pre-Calciner and Raw Mill Kiln burning process, calciner, and preheater tower off gases are directed through the bottom of the raw mill where finely ground raw material is picked up. Combustion gases and fine raw materials are then vented to a baghouse on the main stack (D38). The following equipment is installed: low-NOx burner, selective non-catalytic reduction (SNCR) for NOx control; NOx, CO, total hydrocarbons, and oxygen (O2) CEMS; II.A.14 Kiln description continued mercury (Hg) CEMS or integrated sorbent trap monitoring system; PM continuous parametric monitoring system (CPMS). A carbon injection system is installed at the raw mill bypass duct for mercury adsorption capacity. The carbon injection system is not an emission point as it is in an enclosed building. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 12 II.A.15 Solios Low Pressure Pulse Jet Baghouse One Solios, low pressure pulse jet baghouse - 173,712 ft2 filter area; air flow ranging from 360,000 to 435,000 acfm controlling particulates from stack D38 (raw mill/kiln stack 317.BF3) II.A.16 411.BF1 and 2: Two Kiln Feed Blending Silos Raw material is blended in one of two blending silos prior to feeding the kiln. The blending silos are controlled by one common Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 7,160 acfm total air flow. II.A.17 412.BF1 and 2: Blending Silo Elevators (2) Blended kiln feed is transferred to the kiln by bucket elevators. The elevators are equipped with a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm total air flow through stack E34. II.A.18 414.BF1: Kiln Feed Alleviator A pulse jet baghouse - 1,144 ft2 filter area; 1,672 acfm total air flow controls particulate from the central material silo between the blending silos and the preheater. Raw feed is removed from the system near the top of the preheater tower. II.A.19 41B.BF1: Coal Silo Storage of coal for grinding to powder, which is subsequently fired in the kiln and calciner. The coal storage silo is equipped with a Unifilter, shaker baghouse - 1,508 ft2 filter area; 1,700 acfm total air flow. II.A.20 41B.BF2: Coal Grinding System Coal is ground in a coal mill. Gases drawn from the preheater for the kiln entrain the coal in the mill and are controlled by a Fuller-Kovako, Model 'S' jet pulse, 19,500 acfm rated airflow with 3.75:1 A/C ratio baghouse. II.A.21 419.BF1: Clinker Cooler and Baghouse Grate type cooler used for cooling clinker from the kiln prior to transfer to clinker storage. The clinker cooler vent air is controlled by a Fuller, plenum pulse baghouse - 32,426 ft2 filter area; 202,414 acfm total air flow on the clinker cooler stack (F31). A PM CPMS is installed. II.A.22 419.BF8 and 419.BF10: Clinker Belt Transfer Clinker is removed from the clinker cooler by drag chains and dropped onto one of two clinker conveyor belts. Particulates from outside the clinker belt are controlled by one Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 4,700 acfm total air flow. The conveyor and transfer points are controlled by a second, similar baghouse - 1,351 ft2 filter area; 6,500 acfm total air flow through stack F73. II.A.23 419.BF9: Clinker Silos Clinker from the clinker cooler is transferred to one of three storage silos. Emissions generated when loading the east and west clinker silos and the out-of-spec silo are controlled by a baghouse. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 13 II.A.24 419.BF9: East Clinker Belt Clinker from the clinker cooler is transferred into the East clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. II.A.25 419.BF9: West Clinker Belt Clinker from the clinker cooler is transferred into the West clinker silo by conveyor belt. The discharge from the belt is controlled by a baghouse. II.A.26 419.BF9 - Pulse Jet Baghouse One General Electric, pulse jet baghouse - 11,880 acfm total air flow controlling particulates from east and west clinker storage silos and from the out of specification silo II.A.27 511.BF1: East Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the East clinker storage silo. Emissions during transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.28 511.BF2: West Clinker Silo Discharge Produced clinker is fed to the clinker tunnel conveyor belt from the West clinker storage silo. Emissions during transfer of clinker to the conveyor are controlled by a baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.29 511.BF3: Clinker Reclaim Hopper Imported clinker is fed to the clinker tunnel conveyor belt by the outside clinker hopper. Emissions during transfer of clinker to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.30 511.BF4: Gypsum Silo Discharge Gypsum is fed to the clinker tunnel conveyor belt from the gypsum storage silo. Emissions during transfer of gypsum to the conveyor are controlled by a BHA baghouse (1,800 acfm) that discharges into the clinker tunnel. II.A.31 511.BF1 thru 4: Clinker Tunnel Exitway The clinker reclaim hopper baghouse (511.BF3), east clinker silo discharge baghouse (511.BF1), west clinker silo discharge baghouse (511.BF2), and gypsum silo discharge baghouse (511.BF4) all discharge in the clinker tunnel. Emissions are discharged through the tunnel exitway. II.A.32 512.SX1: Gypsum Silo Gypsum is stored in the gypsum storage silo. A Unifilter 1,500 acfm total airflow, 1,508 ft2 total filter area baghouse is installed on the gypsum storage silo to control dust during loading. II.A.33 512.BF2 and 3: Limestone Silo & Belt Limestone is stored in the limestone storage silo and transferred to the finish mill by conveyor belt. Emissions from the silo and conveyor are controlled by two BHA baghouses. 512.BF2 (1800 acfm) discharges in the clinker tunnel. 512.BF3 (1,000 acfm) is located on top of the silo. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 14 II.A.34 514.BF2: Finish Mill (Ball Mill) The finish mill grinds clinker and gypsum to produce finished cement product. Dust generated during milling is captured by a BHA, pulse jet baghouse - 6,080 ft2 filter area; 32,000 acfm total air flow controlling particulates from stack G105 (finish grinding stack). II.A.35 514.BF1: Finish Mill Separator After clinker and gypsum are ground into cement product, a separator returns the oversized cement particles to the finish mill. Dust generated by the finish mill separator is collected by a BHA, pulse jet baghouse - 4,053 ft2 filter area; 20,000 acfm total air flow controlling particulates from stack G55 (finish mill stack). II.A.36 611.BF1: Finish Cement Storage Silos There are six storage and two interstice silos where the finished cement product is stored. A single common Fuller, plenum pulse baghouse - 1,351 ft2 filter area; 8,000 acfm total air flow through stack H7 is located on top of the silos and is used to control emissions during loading and unloading operations. II.A.37 611.BF3: North Cement Load Out The cement loadout system located on the North side of the silos (rail load outside) is controlled by a Fuller, pulse jet baghouse - with 676 ft2 filter area; 2,800 acfm air flow during unloading from the silos for rail shipping. II.A.38 611.BF2, 611.BF4, 611.BF5: South Cement Load Out The cement loadout system located on the South side of the silos (truck load outside) is controlled by a Fuller, pulse jet baghouse - 676 ft2 filter area; 2,800 acfm air flow (611.BF2) during unloading from the silos for truck shipping. Two pulse jet baghouses (611.BF4, 611.BF5; both 2,825 acfm and 682 ft2 filter area) control emissions from the cement conveyor fluidslides and truck loading chutes. II.A.39 MHO: Materials Handling Operation Includes the following emission units: 315.SX1 thru 4; 315.BF2; 316.BF1 thru 5; 316.BF6; 411.BF1 & 2; 412.BF1 & 2; 414.BF1; 419.BF8; 514.BF3; 419.BF9; 419.BF10; 511.BF1 thru 4; 512.SX1; 611.BF1 thru 5; 512.BF2 & 3; 413.BF1. II.A.40 LBS: Limestone Bypass System Additional limestone is added to the clinker and gypsum by the limestone bypass system (LBS). The LBS consists of a screen and conveyors. Emissions are controlled by water sprays at the screen and material handling drop points. Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 15 II.A.41 GEN: Emergency Generators One diesel-fired emergency generator Rating: 762 hp (Kiln, Tier 3, permitted 2022) Two natural gas-fired emergency generators (new) Rating: 304 hp (Main office and control room, installed 2023) One diesel-fired emergency generator (new) Rating: 762 hp (Shipping, installed 2023). II.A.42 Dust Shuttle System A dust shuttling system is used intermittently to mitigate mercury emissions as required. The system includes the following equipment: elevator from baghouse (317.BE1), pneumatic air slide (317.AS12), alkali silo (413.BN1), pug mill (413.MZ1), pug mill loadout (wetted material), fringe bin (Finish Mill) (514.BN1), 14 inch knife gate (317.GA2), 8 inch knife gate (317.GA4), 8 inch air slides (317.AS21, 317.AS22, 317.AS23), surge bin (317.BN1), pneumatic blower system (413.BL2). II.A.43 Dust shuttle sys continued Emissions from the dust shuttle system are controlled by a baghouse (4,500 acfm) on the fringe bin (514.BF3) and a baghouse (4,500 acfm) on the alkali silo (413.BF1). II.A.44 NEW Miscellaneous Storage Tanks One diesel storage tank (<2,000 gallons) One gasoline storage tank (500 gallons) Three ammonia storage tanks (8,000 gallons each) SECTION II: SPECIAL PROVISIONS The intent is to issue an air quality AO authorizing the project with the following recommended conditions and that failure to comply with any of the conditions may constitute a violation of the AO. (New or Modified conditions are indicated as “New” in the Outline Label): II.B REQUIREMENTS AND LIMITATIONS II.B.1 Requirements on the Cement Plant: II.B.1.a The following limits shall not be exceeded: A. Clinker production - 962,265 tons per rolling 12-month period B. Used oil consumption - 85,724 gallons per rolling 12-month period C. Limestone bypass material processed - 150,000 tons per rolling 12-month period. [R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 16 II.B.1.a.1 To determine compliance with a rolling 12-month total, the owner/operator shall calculate a new 12-month total by the 25th day of each month using data from the previous 12 months. Records shall be kept for all periods when the plant is in operation. Consumption and production shall be calculated through use of the plant's acquisition system. [R307-401-8] II.B.1.b Emissions to the atmosphere at all times from the indicated emission point(s) shall not exceed the following rates and concentrations: Source: Kiln 1/Raw Mill Stack (D38) PM: 0.07 lbs filterable PM per ton of clinker SO2: 0.4 lbs per ton of clinker (3-hr average) CO: 13,045 tons per rolling 12-month period, and 6,600 lbs/hr NOx: 2.8 lbs per ton clinker based upon a 30-day rolling average, and 1,347.2 tons per rolling 12-month period Dioxins and furans (D/F): 0.2 ng/dscm (TEQ) (corrected to 7% O2); or 0.4 ng/dscm (TEQ) (corrected to 7% O2) when the average temperature at the inlet of the PM control device is 400oF or less. Mercury (Hg): 55 lb/MM tons clinker THC: 24 ppmvd (corrected to 7% O2) Source: Clinker Cooler Stack (F31) PM: 0.07 lbs filterable PM per ton of clinker. [40 CFR 63 Subpart LLL, R307-401-8] II.B.1.c NEW A fugitive coal dust emissions control plan shall be submitted in accordance with 40 CFR 60.254(c) for the coal stockpile. Adherence to the most recently submitted fugitive coal dust emissions control plan shall be monitored to demonstrate that appropriate control measures are being implemented to minimize fugitive coal dust to the greatest extent practicable. A copy of the most recently submitted fugitive coal dust control plan shall be kept on site. Records shall be kept that demonstrate all components required by 40 CFR 60.254(c) have been included in the plan and that the source is operating in accordance with the submitted plan. For petitions to approve alternative control measures, the permittee shall keep a copy of the submitted petition and any approvals received. [40 CFR 60 Subpart Y] II.B.1.d Unless the owner/operator has chosen to operate the Leamington Cement Plant as an area source of HAPs, emissions of HCl shall not exceed 3 ppmvd (corrected to 7% O2). [40 CFR 63 Subpart LLL] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 17 II.B.1.e Stack testing to show compliance with the emission limitations stated in Conditions II.B.1.b and II.B.1.c shall be performed as specified below: A. Kiln/Raw Mill Stack Pollutant Test Status Test Frequency PM * # CO * ++ SO2 ** ## NOx * ++ Dioxin/Furan * +++ THC *** ++ Hg *** ++ HCL *** ++ B. Clinker Cooler (F31) Pollutant Test Status Test Frequency PM * # C. Testing Status (To be applied above) * The initial testing has already been performed. ** The SO2 initial performance test was conducted on August 26, 2013. *** The initial compliance test shall be conducted within the first 30 operating days of operation in which the affected source operates using a CEMS. # Test once every year. If performance testing would be required less than 15 operating days after the Kiln has completed Startup after being down for more than 24 hours, then performance testing may be deferred up to 15 operating days after completion of the Startup. The Director may require testing at any time. ## Test at least once every two years. The Director may require testing at any time. ++ Compliance with the limits shall be demonstrated through use of a continuous emissions monitoring system as outlined in Condition II.B.3.a and II.B.1.d.5. The PM10 initial performance test shall be performed in accordance with 40 CFR 63.1349 and compliance shall be demonstrated as follows: To determine continuous operating compliance, the owner/operator must record the PM CPMS output data for all periods when the process is operating, and use all the PM CPMS data for calculations when the PM CPMS is not out-of- control. The owner/operator must demonstrate continuous compliance by using all quality- assured hourly average data collected by the PM CPMS for all operating hours to calculate the arithmetic average operating parameter in units of the operating limit on a 30 operating day rolling average basis, updated at the end of each new kiln operating day. +++ Test every 30 months. [40 CFR 63 Subpart LLL, R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 18 II.B.1.e.1 Notification The Director shall be notified at least 30 days prior to conducting any required emission testing. A source test protocol shall be submitted to DAQ when the testing notification is submitted to the Director. The notification requirements for performance tests subject to 40 CFR 63, Subpart LLL are required within 60 days prior to conducting the performance testing. The source test protocol shall be approved by the Director prior to performing the test(s). The source test protocol shall outline the proposed test methodologies, stack to be tested, and procedures to be used. A pretest conference shall be held, if directed by the Director. [R307- 165] II.B.1.e.2 Sample Location The emission point shall be designed to conform to the requirements of 40 CFR 60, Appendix A, Method 1, or other EPA-approved methods acceptable to the Director. An Occupational Safety and Health Administration (OSHA)- or Mine Safety and Health Administration (MSHA)-approved access shall be provided to the test location. [R307-165] II.B.1.e.3 Volumetric Flow Rate 40 CFR 60, Appendix A, Method 2. [R307-165] II.B.1.e.4 PM 40 CFR 60, Appendix A, Method 5 or 5I or other EPA-approved method as acceptable to the Director. The initial and subsequent PM performance tests shall be performed using Method 5 or 5I and consist of three (3) one-hr tests. [40 CFR 63 Subpart LLL, R307-165] II.B.1.e.5 Carbon Monoxide (CO) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.6 Nitrogen Oxides (NOx) Continuous Emission Monitor (see Condition II.B.3.a). [R307-170] II.B.1.e.7 Sulfur Dioxide (SO2) 40 CFR 60, Method 6 or 6C of Appendix A-4 or other EPA-approved method as acceptable to the Director. [R307-165] II.B.1.e.8 Dioxin/Furan Continuous Monitoring System. [40 CFR 63 Subpart LLL] II.B.1.e.9 Total Hydrocarbons (THC) Continuous Emission Monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.10 Mercury (Hg) Continuous Emission or integrated sorbent trap monitoring (See Condition II.B.3.a). [40 CFR 63 Subpart LLL] II.B.1.e.11 HCl Performance test methods and procedures found in 40 CFR 63.1349(b)(6) or other EPA- approved method as acceptable to the Director. [40 CFR 63 Subpart LLL] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 19 II.B.1.e.12 Calculations To determine mass emission rates (lb/hr, etc.) the pollutant concentration as determined by the appropriate methods above shall be multiplied by the volumetric flow rate and any necessary conversion factors determined by the Director, to give the results in the specified units of the emission limitation. [R307-165] II.B.1.e.13 Existing Source Operation For an existing source/emission point, the production rate during all compliance testing shall be no less than 90% of the maximum production achieved in the previous three years. [R307- 165] II.B.1.f The owner/operator shall determine clinker production as outlined in 40 CFR 63 Subpart LLL. [40 CFR 63 Subpart LLL] II.B.1.g The Dust Shuttle System Fringe Bin and Alkali Silo baghouses shall be operating at all times of Dust Shuttle System operation to assist in the capture of Mercury emission. [R307-401-8] II.B.1.h Visible emissions from the following emission points shall not exceed the following values: A. All crushers - 15% opacity B. All screens - 10% opacity C. Conveyor transfer points - 10% opacity D. All stacking conveyors - 10% opacity E. Bins and trap feeder - 10% opacity F. All diesel engines - 20% opacity G. All support equipment - 20% opacity H. All baghouses - 10% opacity I. Fugitive dust - 20% opacity J. All other points, except for blasting - 20% opacity. [R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 20 II.B.1.i Any totally enclosed conveying system transfer point, regardless of the location of the transfer point is not required to conduct Method 22 visible emissions monitoring under this paragraph. The enclosures for these transfer points must be operated and maintained as total enclosures on a continuing basis in accordance with the facility operations and maintenance plan. If any partially enclosed or unenclosed conveying system transfer point is located in a building, the owner/operator must conduct a Method 22 performance test, of Appendix A-7 to 40 CFR 60, according to the following: (i) The owner/operator must conduct a monthly ten-minute visible emissions test of each affected source in accordance with Method 22 of Appendix A-7 to 40 CFR 60. The performance test must be conducted while the affected source is in operation. (ii) If no visible emissions are observed in six (6) consecutive monthly tests for any affected source, the owner/operator may decrease the frequency of performance testing from monthly to semi-annually for that affected source. If visible emissions are observed during any semi- annual test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six consecutive monthly tests. (iii) If no visible emissions are observed during the semi-annual test for any affected source, the owner/operator may decrease the frequency of performance testing from semi- annually to annually for that affected source. If visible emissions are observed during any annual performance test, the owner/operator must resume performance testing of that affected source on a monthly basis and maintain that schedule until no visible emissions are observed in six consecutive monthly tests. (iv) If visible emissions are observed during any Method 22 performance test, of Appendix A- 7 to 40 CFR 60, the owner/operator must conduct 30 minutes of opacity observations, recorded at 15-second intervals, in accordance with Method 9 of Appendix A-4 to 40 CFR 60. The Method 9 performance test, of Appendix A-4 to 40 CFR 60, must begin within one hour of any observation of visible emissions. (v) If visible emissions from a building are monitored, the requirements of paragraphs (i) through (iv) of this Condition apply to the monitoring of the building, and the owner/operator must also test visible emissions from each side, roof, and vent of the building for at least ten minutes. [R307-401] II.B.2 Roads and Fugitive Dust Requirements: II.B.2.a Paved roads and operational areas shall be swept and/or water sprayed to minimize fugitive dusts as dry conditions warrant or as determined necessary by the Director to maintain opacity limits listed in this AO. [R307-401] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 21 II.B.2.b All unpaved roads and other unpaved operational areas that are used by mobile equipment shall be water sprayed and/or chemically treated to control fugitive dust. The application of water or chemical treatment shall be used. Treatment shall be of sufficient frequency and quantity to maintain the surface material in a damp/moist condition unless it is below freezing. If chemical treatment is to be used, the plan must be approved by the Director. Records of water and/or chemical treatment shall be kept for all periods when the plant is in operation. The records shall include the following items: Instances of water and/or chemical application to unpaved areas shall be recorded and maintained by the owner/operator. The ambient temperature shall be recorded any time water should be applied but cannot due to freezing conditions. [R307-401-8] II.B.2.c Water sprays or chemical dust suppression sprays shall be installed at the following points to control fugitive emissions: A. Hopper at the primary crusher B. Material belt feeding the stacker C. Limestone bypass screen/ conveyor drops The sprays shall operate whenever dry conditions warrant meeting the required opacity limitations or as determined necessary by the Director. Water sprays shall not be required during periods of freezing temperatures. [R307-401-8] II.B.2.d All disturbed surfaces not involved with operations shall be stabilized to minimize generation of fugitive dusts as dry conditions warrant or as determined necessary by the Director. [R307- 401-8] II.B.3 Continuous Emission Monitoring Requirements: II.B.3.a The owner/operator shall install, calibrate, maintain and continuously operate a continuous emissions monitoring system on the Kiln 1/raw mill stack and clinker cooler. The owner/ operator shall record the output of the system: including the quantity of NOx and CO emissions at the kiln stack. For the NOx mass emission limits, during any time when the CEMS are inoperable and otherwise not measuring emissions of NOx from the kiln, the owner/operator shall apply the missing data substitution procedures used by the UDAQ or the missing data substitution procedures in 40 CFR Part 75, Subpart D, whichever is deemed appropriate by the UDAQ. In calculating the 30-day rolling average emission rate, the total pounds of NOx emitted during a specified period shall include all kiln emissions that occur during the specified period including during each startup, shutdown, or malfunction. The monitoring system shall comply with all applicable sections of R307-170, UAC; and 40 CFR 60, Appendix B. A Total Hydrocarbons (THC) and Oxygen (O2) CEMs shall be installed on Kiln 1. A mercury (Hg) CEM or integrated sorbent trap monitoring system shall be installed on Kiln 1. A HCl CEM shall be installed on Kiln 1. Except for system breakdown, repairs, calibration checks, and zero and span adjustments required under paragraph (d) 40 CFR 60.13, the owner/operator of an affected source shall continuously operate all required continuous monitoring devices and shall meet minimum frequency of operation requirements as outlined in 40 CFR 60.13 and Section UAC R307-170. [40 CFR 63 Subpart LLL, R307-170] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 22 II.B.3.b The owner/operator shall install and operate a PM CPMS on the Kiln 1/Raw Mill and clinker cooler stacks in accordance with the requirements of 40 CFR 63.1350 (b) and (d). Except during periods of CPMS breakdowns, repairs, calibration checks, and zero span adjustments, the PM CPMS shall be operated at all times of kiln operation. The owner/operator shall use a PM CPMS to establish a Site-Specific Operating Limit (SSOL) for PM corresponding to the results of the performance test demonstrating compliance with the filterable PM limit and using the methodology in 40 CFR 63.1349(b). The owner/operator shall reassess and adjust the SSOL developed in accordance with the results of the most recent PM performance test demonstrating compliance with the PM emission limit. The owner/operator shall use the PM CPMS to demonstrate continuous compliance with the SSOL in accordance with the requirements of 40 CFR 63.1350(b)(1). [40 CFR 63 Subpart LLL] II.B.4 Fuel Limitations: II.B.4.a The owner/operator shall use only the following fuels in the kiln and pre-calciner: A. Coal B. Diaper Derived Fuel (DDF) C. Tire Derived Fuel (TDF) D. Natural Gas E. Coke F. Fuel Oil G. Used Oil fuel H. Synthetic Fuel I. Wood J. Coal Additives as defined in Condition II.B.4.b The maximum TDF consumption shall not exceed 15% of the combined total energy input to the rotary kiln and pre-calciner. This shall be verified on a rolling 12-month basis by examination of the fuel use totals and their respective heating values. If any other fuel is to be used, an AO shall be required in accordance with R307-401, UAC. [R307-401] II.B.4.b The coal additives listed above shall consist of alternative fuels approved by the Director. Prior to burning any proposed coal additive, the owner/operator shall obtain approval from the Director. To obtain approval, the owner/operator shall submit Material Safety Data Sheets (MSDS) or the results of suitable tests giving data similar to a Proximate and Ultimate analysis of the proposed coal additive. [R307-401-8] II.B.4.b.1 Approval by the Director shall consist of a letter approving the use of the proposed coal additive. Approval is not required to change from one previously-approved coal additive to another previously-approved coal additive. [R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 23 II.B.4.b.2 The average quantity of coal additives burned shall not be greater than 15% of the total daily heat input of the kiln and precalciner. The owner/operator may increase the average quantity of coal additives up to 25% of the total daily heat input of the kiln and precalciner upon approval by the Director in accordance with the approval process described in Condition II.B.4.b. [R307-401-8] II.B.4.c The sulfur content of any coal, oil, or mixture thereof, burned in any fuel burning or process installation not covered by New Source Performance Standards for sulfur emissions or covered elsewhere in this AO, shall contain no more than 1.0 pound sulfur per million gross Btu heat input for any mixture of coal nor 0.85 pounds sulfur per million gross Btu heat input for any oil except used oil. The sulfur content shall comply with all applicable sections of UAC R307-203. [R307-203, R307-401-8] II.B.4.c.1 Certification of fuels shall be either by the owner/operator's own testing or test reports from the fuel marketer. Records of each fuel supplier's test report on sulfur content shall be available onsite. Methods for determining sulfur content of coal and fuel oil shall be those methods of the American Society for Testing and Materials, UAC R307-203-1 (4) A. For determining sulfur content in coal, ASTM Methods D3177-75 or D4239-85 are to be used. B. For determining sulfur content in oil, ASTM Methods D2880-71 or D4294-89 are to be used. C. For determining the gross calorific (or Btu) content of coal, ASTM Methods D2015- 77 or D3286-85 are to be used. [R307-203] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 24 II.B.4.d The concentration/parameters of contaminants in any used oil fuel shall not exceed the following levels: 1) Arsenic 5 ppm by weight 2) Barium 100 ppm by weight 3) Cadmium 2 ppm by weight 4) Chromium. 10 ppm by weight 5) Lead 100 ppm by weight 6) Total halogens 1,000 ppm by weight 7) Sulfur 0.5 percent by weight A. The flash point of all used oil to be burned shall not be less than 100oF. B. The owner/operator shall provide test certification for each load of used oil fuel received. Certification shall be either by their own testing or test reports from the used oil fuel marketer. Records of used oil fuel consumption and the test reports shall be kept for all periods when the plant is in operation. C. Used oil that does not exceed any of the listed contaminants content may be burned. The owner/operator shall record the quantities of oil burned on a daily basis. D. Any used oil fuel that contains more than 1000 ppm by weight of total halogens shall be considered a hazardous waste and shall not be burned in the kiln/preheater. The oil shall be tested for halogen content by ASTM Method D- 808-81, EPA Method 8240 or Method 8260 before used oil fuel is transferred to the burn tank and burned. [R307-401-8] II.B.4.e The following operating parameters shall be met at all times when used oil or TDF is burned in the rotary kiln: A. Combustion gas temperature at the rotary kiln exit - no less than 1500oF for more than five minutes in any 60-minute period B. Oxygen content at the kiln system ID fan - no less than 2% for more than five minutes in any 60-minute period. [R307-401-8] II.B.4.e.1 The temperature and oxygen content shall both be monitored with equipment approved by the Director. The calibration procedure and frequency shall be according to manufacturer's specifications. Use of factory-calibrated thermocouples for temperature measurement is approved. However, any other method of temperature measurement must be approved by the Director prior to use. The monitoring equipment for both temperature and oxygen content shall be located such that an inspector can at any time safely read the output. [R307-401-8] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 25 PERMIT HISTORY When issued, the approval order shall supersede (if a modification) or will be based on the following documents: Is Derived From Source Submitted NOI dated June 13, 2023 Incorporates Additional Information Received dated January 9, 2024 Incorporates Additional Information Received dated January 10, 2024 Incorporates Additional Information Received dated January 17, 2024 Supersedes DAQE-AN103030030-22 dated April 20, 2022 REVIEWER COMMENTS 1. Comment regarding project changes: The new and changed equipment appears in the equipment list in section II.A. There are no other changes in permit conditions. All of the emergency generators are covered by NSPS Subparts IIII and JJJJ as well as NESHAP Subpart ZZZZ. These requirements appear in full in Ash Grove's Title V permit and are referenced in the Source Information section of this document. As the BACT review for these sources resulted in no additional controls beyond the requirements of these subparts, no changes in permit conditions are required. [Last updated December 13, 2023] 2. Comment regarding emission calculations: Emissions for this project have been calculated using a combination of EPA's AP-42 emission factors, manufacturers provided information, and the emissions limits established in federal NSPS Subparts IIII, JJJJ and NESHAP Subpart ZZZZ. Emissions specifically associated with the two new storage piles were estimated using information from the source regarding material handling operations. UDAQ has reviewed these emission calculations and agrees with the estimates provided. [Last updated December 13, 2023] Engineer Review N103030033: Ash Grove Cement Company- Leamington Cement Plant January 24, 2024 Page 26 ACRONYMS The following lists commonly used acronyms and associated translations as they apply to this document: 40 CFR Title 40 of the Code of Federal Regulations AO Approval Order BACT Best Available Control Technology CAA Clean Air Act CAAA Clean Air Act Amendments CDS Classification Data System (used by EPA to classify sources by size/type) CEM Continuous emissions monitor CEMS Continuous emissions monitoring system CFR Code of Federal Regulations CMS Continuous monitoring system CO Carbon monoxide CO2 Carbon Dioxide CO2e Carbon Dioxide Equivalent - 40 CFR Part 98, Subpart A, Table A-1 COM Continuous opacity monitor DAQ/UDAQ Division of Air Quality DAQE This is a document tracking code for internal UDAQ use EPA Environmental Protection Agency FDCP Fugitive dust control plan GHG Greenhouse Gas(es) - 40 CFR 52.21 (b)(49)(i) GWP Global Warming Potential - 40 CFR Part 86.1818-12(a) HAP or HAPs Hazardous air pollutant(s) ITA Intent to Approve LB/HR Pounds per hour LB/YR Pounds per year MACT Maximum Achievable Control Technology MMBTU Million British Thermal Units NAA Nonattainment Area NAAQS National Ambient Air Quality Standards NESHAP National Emission Standards for Hazardous Air Pollutants NOI Notice of Intent NOx Oxides of nitrogen NSPS New Source Performance Standard NSR New Source Review PM10 Particulate matter less than 10 microns in size PM2.5 Particulate matter less than 2.5 microns in size PSD Prevention of Significant Deterioration PTE Potential to Emit R307 Rules Series 307 R307-401 Rules Series 307 - Section 401 SO2 Sulfur dioxide Title IV Title IV of the Clean Air Act Title V Title V of the Clean Air Act TPY Tons per year UAC Utah Administrative Code VOC Volatile organic compounds $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV   87$+',9,6,212)$,548$/,7<±127,&( 2),17(17 $VK*URYH&HPHQW&RPSDQ\±/HDPLQJWRQ8WDK 0RGLILFDWLRQRI$SSURYDO2UGHU'$4($1  3UHSDUHG%\  75,1,7<&2168/7$176 :DVDWFK%RXOHYDUG 6XLWH 6DOW/DNH&LW\8WDK    6XEPLWWHGRQ%HKDOIRI $VK*URYH&HPHQW&RPSDQ\ 32%R[ /HDPLQJWRQ87   June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±(OLPLQDWH7HFKQLFDOO\,QIHDVLEOH&RQWURO2SWLRQV 6WHS±5DQN5HPDLQLQJ&RQWURO7HFKQRORJLHVE\&RQWURO(IIHFWLYHQHVV 6WHS±(YDOXDWH0RVW(IIHFWLYH&RQWUROVDQG'RFXPHQW5HVXOWV 6WHS6HOHFW%$&7 1DWXUDO*DV(PHUJHQF\*HQHUDWRU 6WHS,GHQWLI\$OO&RQWURO7HFKQRORJLHV 6WHS±(OLPLQDWH7HFKQLFDOO\,QIHDVLEOH2SWLRQV 6WHS±5DQN5HPDLQLQJ&RQWURO7HFKQRORJLHVE\&RQWURO(IIHFWLYHQHVV 6WHS±(YDOXDWH0RVW(IIHFWLYH&RQWUROVDQG'RFXPHQW5HVXOWV 6WHS±6HOHFW%$&7 (0,66,21,03$&7$1$/<6,6  121$77$,10(170$,17(1$1&($5($62))6(77,1*  $33/,&$%/(5(*8/$7,216  8'$4$SSOLFDEOH5XOHV 8$&5*HQHUDO5HTXLUHPHQWV%UHDNGRZQV 8$&5(PLVVLRQ6WDQGDUGV6XOIXU&RQWHQWRI)XHOV 8$&5(PLVVLRQ6WDQGDUGV)XJLWLYH(PLVVLRQVDQG)XJLWLYH'XVW )HGHUDO5XOHV1DWLRQDO(PLVVLRQ6WDQGDUGVIRU+D]DUGRXV$LU3ROOXWDQWV 1(6+$36XESDUW$±*HQHUDO3URYLVLRQV 1(6+$36XESDUW==== $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV  LL )HGHUDO5XOHV1HZ6RXUFH3HUIRUPDQFH6WDQGDUGV 16366XESDUW$±*HQHUDO3URYLVLRQV 16366XESDUW,,,, 16366XESDUW---- )2506$-1 (0,66,21&$/&8/$7,21%-1 021,725,1*&21',7,216&-1   $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV (;(&87,9(6800$5< $VK*URYH&HPHQW&RPSDQ\ $VK*URYH RZQVDQGRSHUDWHVDFHPHQWSODQWDSSUR[LPDWHO\six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¶VH[LVWLQJ$2,Q DGGLWLRQ$VK*URYHZRXOGOLNHWRUHTXHVWWKDWWKLVSURMHFWEHUHYLHZHGDV8'$4¶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¶V7LWOH9SURJUDP7KH/HDPLQJWRQ3ODQWLV DPDMRUVRXUFHZLWKUHVSHFWWRWKH1DWLRQDO(PLVVLRQV6WDQGDUGVIRU+D]DUGRXV$LU3ROOXWDQWV 1(6+$3  SURJUDPDVZHOODVDPDMRUVRXUFHXQGHUWKH1HZ6RXUFH5HYLHZ 165 SURJUDP 7KLV12,DLUSHUPLWDSSOLFDWLRQKDVEHHQGHYHORSHGSXUVXDQW8WDK$GPLQLVWUDWLYH&RGH 8$& 5 DQG8WDK¶VDSSOLFDWLRQJXLGDQFHDQGLQFOXGHVEXWLVQRWOLPLWHGWR  Ź 12,)RUPVDQG)HHV Ź 3URFHVV'HVFULSWLRQ Ź 37(&DOFXODWLRQV Ź %HVW$YDLODEOH&RQWURO7HFKQRORJ\ %$&7 $QDO\VLV Ź $SSOLFDEOH5HTXLUHPHQWVDQG Ź (PLVVLRQ,PSDFW$QDO\VLV$SSOLFDELOLW\  $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV *(1(5$/,1)250$7,21 7KHIROORZLQJVHFWLRQFRQWDLQVWKHLQIRUPDWLRQUHTXHVWHGXQGHUWKH³6RXUFH,GHQWLILFDWLRQ,QIRUPDWLRQ´ VHFWLRQRI8'$4)RUP1RWLFHRI,QWHQW 12, $SSOLFDWLRQ&KHFNOLVW 6RXUFH,GHQWLILFDWLRQ6XPPDU\ Ź&RPSDQ\1DPH   $VK*URYH&HPHQW&RPSDQ\ Ź$GGUHVV    +Z\/HDPLQJWRQ87 Ź&RXQW\    -XDE&RXQW\ Ź870&RRUGLQDWHV   (DVWLQJP1RUWKLQJP=RQH Ź3ULPDU\6,&&RGH    &HPHQW+\GUDXOLF  Ź$UHD'HVLJQDWLRQ   $WWDLQPHQWIRUDOO3ROOXWDQWV Ź6RXUFH6L]H'HWHUPLQDWLRQ 0DMRU6RXUFH±$23 Ź&XUUHQW$2   '$4($1  $OOFRUUHVSRQGHQFHUHJDUGLQJWKLVVXEPLVVLRQVKRXOGEHDGGUHVVHGWR  ჭ0U&RG\:DWNLQV ჭ(QYLURQPHQWDO(QJLQHHU ჭ32%R[ ჭ/HDPLQJWRQ87 ჭ3KRQH   ჭ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¶V(QKDQFHG$2 IRULQFRUSRUDWLRQLQWRLWV7LWOH9DLURSHUDWLQJSHUPLW0RQLWRULQJFRQGLWLRQVKDYHEHHQLQFOXGHGIRU8'$4¶V FRQVLGHUDWLRQLQ$SSHQGL[&RIWKLVDSSOLFDWLRQ  1RWLFHRI,QWHQW)RUPV 7KHIROORZLQJ8'$4IRUPVKDYHEHHQLQFOXGHGZLWKWKH12,DLUSHUPLWDSSOLFDWLRQ  Ź)RUP±1RWLFHRI,QWHQW$SSOLFDWLRQ&KHFNOLVW Ź)RUP±6RXUFH,GHQWLILFDWLRQ,QIRUPDWLRQ Ź)RUP±3URMHFW,QIRUPDWLRQ  $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV Ź)RUP±(PLVVLRQV,QIRUPDWLRQ&ULWHULD*+*V+$3VDQG Ź)RUP±'LHVHO3RZHUHG6WDQGE\*HQHUDWRU 1RWLFHRI,QWHQW)HHV $VK*URYHZLOOXVHWKH8'$4¶V3D\PHQW3RUWDOWRSUHSD\WKHIROORZLQJ8'$412,IHHVDVVRFLDWHGZLWKWKLV VXEPLWWDO  ჭ³$SSOLFDWLRQ)LOLQJ)HH´IRUWKH³1HZ0LQRU6RXUFHRU0LQRU0RGLILFDWLRQDW0LQRURU0DMRU6RXUFH´ FDWHJRU\  ჭ³$SSOLFDWLRQ5HYLHZ)HH´IRUWKH³1HZ0LQRU6RXUFHRU0LQRU0RGLILFDWLRQDW0LQRURU0DMRU6RXUFH´ FDWHJRU\  ჭ7RWDO8'$4IHHV   $VK*URYHXQGHUVWDQGVWKDWWKHWRWDOSHUPLWUHYLHZIHHLVEDVHGRQWKHWRWDODFWXDOWLPHVSHQWE\8'$4 VWDIISURFHVVLQJWKLV12,DLUSHUPLWDSSOLFDWLRQ8SRQLVVXDQFHRIDQ$2LIWKHWRWDOUHYLHZWLPHLVPRUH WKDQVWDQGDUGKRXUV8'$4ZLOOLQYRLFH$VK*URYHDWSHUKRXUIRUWKHDGGLWLRQDOWLPHDERYH VWDQGDUGKRXUV   $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW 7ULQLW\&RQVXOWDQWV '(6&5,37,212)352-(&7$1'352&(66 'HVFULSWLRQRI3URMHFW 7KH/HDPLQJWRQ3ODQWLVSURSRVLQJWRPRGLI\LWVFXUUHQW$2E\UHSODFLQJWKH/HDPLQJWRQ3ODQW¶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±LH PDWHULDOVWKDWKDYHQRWSUHYLRXVO\EHHQXVHGDWWKH/HDPLQJWRQ3ODQW±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¶V VSHFLILFDWLRQVKHHWDQGZHUHXVHGLQWKHIROORZLQJHTXDWLRQ  —ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ‰‹‡ƒ–‹‰ ሺŠ’ሻ ൈ ൬ ‰ Š’ ڄ Š” ൰ ൈ —ƒŽ’‡”ƒ–‹‘൬ ͳͲͲŠ” ›”൰ൈ൬ ͳ–‘ ͻͲ͹ǡͳͺͷ‰൰  ,QRUGHUWRVWDQGDUGL]HDQGVWUHDPOLQHWKHHPLVVLRQFDOFXODWLRQVWRWDODQQXDOHPLVVLRQVIRU62IURPWKH QHZJHQHUDWRUDVZHOODVDOOFULWHULDHPLVVLRQVIURPWKHROGJHQHUDWRUZHUHEDVHGRQVWDQGDUG(3$()V IRXQGLQ$36HFWLRQ/DUJH6WDWLRQDU\'LHVHODQG$OO6WDWLRQDU\'XDOIXHO(QJLQHVDQG$36HFWLRQ *DVROLQHDQG'LHVHO,QGXVWULDO(QJLQHVUHVSHFWLYHO\7KH62HPLVVLRQIDFWRUIRUWKHQHZJHQHUDWRUZDV XVHGDVGHVFULEHGLQWKHIROORZLQJHTXDWLRQ  —ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ‡ƒ– ’—–൬ –— Š”൰ൈ ൬ Ž„ –—൰ ൈ —ƒŽ’‡”ƒ–‹‘൬ ͳͲͲŠ” ›”൰ൈ൬ ͳ–‘ ʹǡͲͲͲŽ„൰  ZKLOHWKHHPLVVLRQIDFWRUVIRUWKHROGJHQHUDWRUZHUHXVHGDVGHVFULEHGLQWKHIROORZLQJHTXDWLRQ  —ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ‰‹‡ƒ–‹‰ ሺŠ’ሻ ൈ ൬ Ž„ Š’ ڄ Š” ൰ ൈ —ƒŽ’‡”ƒ–‹‘൬ ͳͲͲŠ” ›”൰ൈ൬ ͳ–‘ ʹǡͲͲͲŽ„൰  7KHHPLVVLRQIDFWRUVXVHGDQGWKHUHVXOWVRIWKHVHFDOFXODWLRQVFDQEHIRXQGLQ$SSHQGL[% 1DWXUDO*DV)LUHG(PHUJHQF\*HQHUDWRUV 7KH/HDPLQJWRQ3ODQWLVDGGLQJWZR  QDWXUDOJDVILUHGHPHUJHQF\JHQHUDWRUHQJLQHV()VIRU&212; DQG92&VZHUHSURYLGHGIRUWKHQHZHQJLQHVE\WKHHQJLQHV¶FHUWLILFDWHRIFRQIRUPLW\DQGZHUHXVHGLQWKH IROORZLQJHTXDWLRQ  —ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ‰‹‡ƒ–‹‰ ሺ„Š’ሻ ൈ ൬ ‰ Š’ ڄ Š” ൰ ൈ —ƒŽ’‡”ƒ–‹‘൬ ͳͲͲŠ” ›”൰כ൬ ͳ–‘ ͻͲ͹ǡͳͺͷ‰൰  ,QRUGHUWRVWDQGDUGL]HDQGVWUHDPOLQHWKHHPLVVLRQFDOFXODWLRQVWRWDODQQXDOHPLVVLRQVIRU3030DQG 62IURPWKHQHZJHQHUDWRUVZHUHEDVHGRQVWDQGDUG(3$()VEDVHGRQ$36HFWLRQ1DWXUDO*DV ILUHG5HFLSURFDWLQJ(QJLQHVXVHGLQWKHIROORZLQJHTXDWLRQ  —ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ‡ƒ– ’—–൬ –— Š”൰ൈ ൬ Ž„ –—൰ ൈ —ƒŽ’‡”ƒ–‹‘൬ ͳͲͲŠ” ›”൰ൈ൬ ͳ–‘ ʹǡͲͲͲŽ„൰   $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV 7KHHPLVVLRQIDFWRUVXVHGDQGWKHUHVXOWVRIWKHVHFDOFXODWLRQVFDQEHIRXQGLQ$SSHQGL[% *+*(PLVVLRQV *+*HPLVVLRQVFDOFXODWLRQVZLOOLQFUHDVHEDVHGRQWKHLQFUHDVHGGLHVHOXVDJHIURPWKHVOLJKWO\ODUJHUGLHVHO ILUHGHPHUJHQF\JHQHUDWRUHQJLQHUHSODFHPHQWDQGWKHLQFUHDVHGQDWXUDOJDVXVDJHIURPWKHWZR   DGGLWLRQDOQDWXUDOJDVILUHGJHQHUDWRUHQJLQHV,QRUGHUWRFDOFXODWHWRWDO&DUERQ'LR[LGH(TXLYDOHQW &2H HTXLYDOHQWWR*+* HPLVVLRQVHQJLQHVSHFLILFKHDWLQSXWVDQGRSHUDWLQJKRXUVZHUHPXOWLSOLHGE\IXHO VSHFLILFHPLVVLRQIDFWRUVDQGJOREDOZDUPLQJSRWHQWLDOV *:3 SURYLGHGLQ&RGHRI)HGHUDO5HJXODWLRQV &)5 7DEOHV$&DQG&  ଶ ‡—ƒŽ‹••‹‘•ሺ–’›ሻ ൌ ൬‹••‹‘ ƒ…–‘”ଶ ൬ ‰ –—൰ ൅ ‹••‹‘ ƒ…–‘” ସ ൬ ‰ –—൰ൈ  ସ ൅ ‹••‹‘ ƒ…–‘”ଶ ൬ ‰ –—൰ൈ ଶ൰ ൈ ‡ƒ– ’—–൬ –— Š”൰ כ ’‡”ƒ–‹‰ ‘—”•൬ Š” ›”൰ൈ൬ –‘ ͻͲ͹Ǥͳͺͷ‰൰ 6WRFNSLOH(PLVVLRQV $PD[LPXPSLOHDUHDIRUHDFKVWRFNSLOHZDVGHWHUPLQHGEDVHGRQFRQVHUYDWLYHHQJLQHHULQJHVWLPDWHV,WLV DVVXPHGWKDWHDFKVWRFNSLOHZLOOQRWH[FHHGWKHUHSRUWHGVL]HRQDQ\JLYHQGD\7RFDOFXODWHHPLVVLRQVWKH PD[LPXPSLOHDUHDLVPXOWLSOLHGE\DQ()DORQJZLWKVHYHUDOFRQYHUVLRQIDFWRUV()VDUHFKRVHQEDVHGRQ ZKDWVL]HWKHSDUWLFOHLV 30RU30 DQGZKHWKHUWKHVWRFNSLOHLVFRQWUROOHGRUXQFRQWUROOHGDQGDFWLYH RULQDFWLYH8QFRQWUROOHG()VZHUHREWDLQHGIURP$3)RXUWK(GLWLRQ7DEOHDQG$3$SSHQGL[ %7DEOH%XQGHUWKHJXLGDQFHRI8'$4  —ƒŽ–‘…’‹Ž‡‹••‹‘•ሺ–’›ሻ ൌ ƒšǤ‹Ž‡”‡ƒ ሺƒ…”‡ሻ ൈ ൬ Ž„ †ƒ› ڄ ƒ…”‡ ൰ ൈ ‘˜‡”•‹‘൬ ͵͸ͷ†ƒ› ൈ ͳ–‘ ͳ›‡ƒ” ൈ ʹǡͲͲͲŽ„ ൰ 0DWHULDO+DQGOLQJ(PLVVLRQV )RUDOOPDWHULDOWUDQVIHUWKHXQFRQWUROOHG30DQG30()VZHUHREWDLQHGIURPWKH³GURSHTXDWLRQ´LQ$3 6HFWLRQ 1RYHPEHU 7KHHTXDWLRQLV  ൌ ሺͲǤͲͲ͵ʹሻ ൈ ቀ ͷ ቁ ଵǤଷ ቀ ʹ ቁ ଵǤସ  ZKHUH  ( HPLVVLRQIDFWRUV OEWRQ  N SDUWLFOHVL]HPXOWLSOLHU GLPHQVLRQOHVV  8 PHDQZLQGVSHHG PSK  0 PDWHULDOPRLVWXUHFRQWHQW     $3)RXUWK(GLWLRQ7DEOHKWWSVZZZHSDJRYWWQFKLHIDSROGHGLWLRQVWKBHGLWLRQDSBWKHGBRULJSGI $3$SSHQGL[%7DEOH%KWWSVZZZHSDJRYWWQFKLHIDSDSSHQGL[DSSESGI  $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV 3DUDPHWHU³8´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—ƒŽ”—•Š‹‰ƒ†…”‡‡‹‰ሺ–’›ሻ ൌ ‘–‡–‹ƒŽ—ƒŽŠ”‘—‰Š’—– ሺ–’›ሻ ൈ ൬ Ž„ –‘൰ ൈ —„‡”‘ˆ‹–•‘””‘’‘‹–• ൈ ‘˜‡”•‹‘൬ ͳ–‘ ʹǡͲͲͲŽ„൰ 5RDG(PLVVLRQV 7KHKDXOURDGVDWWKH/HDPLQJWRQ3ODQWDIIHFWHGE\WKLVSURMHFWFRQVLVWVROHO\RISDYHGURDGV30DQG 30HPLVVLRQVZHUHGHULYHGXVLQJ8'$4¶VJXLGDQFHJLYHQLQ³(PLVVLRQ)DFWRUVIRU3DYHGDQG8QSDYHG +DXO5RDGV´-DQXDU\LQFRQMXQFWLRQZLWK86(3$$36HFWLRQ1RYHPEHU(PLVVLRQV IURPWKHVHURDGVZHUHFDOFXODWHGXVLQJWKHIROORZLQJHTXDWLRQ   ൌ  ൈ ቀ • ͳʹቁ ୟ ൈ൬ ͵ ൰ ୠ ൈൈ ͳ–‘ ʹǡͲͲͲŽ„ൈሺͳെɄሻ :KHUH 30  303030HPLVVLRQV WS\  N  303030N)DFWRU OE907  V  $YHUDJHVLOWFRQWHQW    ൌ ‡ƒ˜‡Š‹…އ™‡‹‰Š–ሺ–‘•ሻ  ൌ ‹•–ƒ…‡–”ƒ˜‡Ž‡†ሺȀ›”ሻ D  &RQVWDQWIRUHTXDWLRQ YDULHVIRU303030  XQLWOHVV  E  &RQVWDQWIRUHTXDWLRQ YDULHVIRU303030  XQLWOHVV  Ʉ ൌ ‘–”‘އˆˆ‹…‹‡…›ሺΨሻ  3DUDPHWHU : LVGHWHUPLQHGE\WDNLQJWKHPHDQZHLJKWRIDOOYHKLFOHVSHU8'$4JXLGDQFHJLYHQLQ ³(PLVVLRQ)DFWRUVIRU3DYHGDQG8QSDYHG+DXO5RDGV´-DQXDU\3DUDPHWHU ' LVGHWHUPLQHGE\XVLQJ WKHSURGXFWWKURXJKSXWGLYLGHGE\WKHGLIIHUHQFHLQIXOODQGHPSW\YHKLFOHZHLJKWWRGHWHUPLQHWKHWRWDO QXPEHURIKDXOVUHTXLUHG7KLVYDOXHLVPXOWLSOLHGE\WKHURXQGWULSGLVWDQFHWUDYHOHGE\WKHFXVWRPHU WUXFNV7KHDYHUDJHVLOWFRQWHQWXVHGLQWKLVHTXDWLRQLVDOVRSHU8'$4JXLGDQFHJLYHQLQ³(PLVVLRQ)DFWRUV IRU3DYHGDQG8QSDYHG+DXO5RDGV´-DQXDU\  $VDPHDQVRIFRQWURODZDWHULQJWUXFNUHJXODUO\DSSOLHVZDWHUWRWKH/HDPLQJWRQ3ODQW¶VSDYHGURDGV7KH SDYHGURDGVDUHDOVRYDFXXPVZHSWWKHUHIRUHXVLQJJXLGDQFHIURPWKHPHPRUDQGXPLVVXHGE\8'$4 UHJDUGLQJHPLVVLRQIDFWRUVIRUSDYHGKDXOURDGVDFRQWUROIDFWRURIIRUZDWHULQJDQGYDFXXP  $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV VZHHSLQJZDVXVHGIRUIXJLWLYHKDXOURDGHPLVVLRQV(PLVVLRQVZHUHSURMHFWHGEDVHGRQWKH/HDPLQJWRQ 3ODQW¶VURDGOD\RXWVYHKLFOHZHLJKWVKDXOLQJFDSDFLW\DQGDQQXDOWKURXJKSXWRIVWRFNSLOHGPDWHULDOV  ³(PLVVLRQ)DFWRUVIRU3DYHGDQG8QSDYHG+DXO5RDGV´8'$4-DQXDU\  $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV %(67$9$,/$%/(&21752/7(&+12/2*<$1$/<6,6 ,QWKH6WDWHRI8WDKXQGHU5  G 1RWLFHRI,QWHQWHYHU\IDFLOLW\RSHUDWLRQRUSURFHVVWKDW SURSRVHVDQ\DFWLYLW\WKDWZRXOGHPLWDQDLUFRQWDPLQDQWLQWRWKHDLUPXVWFRQVLGHU%$&7IRUDSURSRVHG QHZVRXUFHRUPRGLILFDWLRQ7KHEHORZ%$&7DQDO\VLVRQO\DGGUHVVHVXQLWVZKLFKZLOOEHPRGLILHGLQVWDOOHG RURWKHUZLVHDIIHFWHGE\WKLV12,DLUSHUPLWDSSOLFDWLRQ 'LHVHO)LUHG(PHUJHQF\*HQHUDWRU $VK*URYHSODQVWRUHSODFHWKH/HDPLQJWRQ3ODQW¶VHPHUJHQF\VKLSSLQJJHQHUDWRUZLWKDQXSGDWHGPRGHO 7KHGHVLJQUDWHRIWKHXSGDWHGHQJLQHZLOOEHKS(PLVVLRQVUHVXOWLQJIURPWKHLQVWDOODWLRQRIWKHGLHVHO ILUHGHPHUJHQF\JHQHUDWRUFRQVLVWRI12;62;&2303092&VDQG+$3V 6WHS,GHQWLI\$OO&RQWURO7HFKQRORJLHV 7KHIROORZLQJVRXUFHVZHUHUHYLHZHGWRLGHQWLI\DYDLODEOHFRQWUROWHFKQRORJLHVIRUWKHGLHVHOSRZHUHG HPHUJHQF\JHQHUDWRUHQJLQH  Ź(3$¶V5%/&'DWDEDVHIRU'LHVHO(QJLQHV Ź(3$¶V$LU3ROOXWLRQ7HFKQRORJ\)DFW6KHHWVDQG Ź6RXWK&RDVW$LU4XDOLW\0DQDJHPHQW'LVWULFW 6&$40' ([DPSOH3HUPLWV $YDLODEOHFRQWUROWHFKQRORJLHVIRUGLHVHOILUHGQRQHPHUJHQF\HQJLQHVLQFOXGHWKHIROORZLQJ  Ź/LPLWHG+RXUVRI2SHUDWLRQ Ź*RRG&RPEXVWLRQ3UDFWLFHV Ź8VHRID7LHU&HUWLILHG(QJLQH Ź(QJLQH'HVLJQ Ź'LHVHO3DUWLFXODWH)LOWHU Ź8OWUD/RZ6XOIXU)XHO Ź'LHVHO2[LGDWLRQ&DWDO\VWDQG Ź6HOHFWLYH&DWDO\VW5HGXFWLRQ 6&5   7KHIROORZLQJVWHSHYDOXDWHVWKHWHFKQLFDOIHDVLELOLW\RIHDFKRIWKHVHRSWLRQV 6WHS±(OLPLQDWH7HFKQLFDOO\,QIHDVLEOH&RQWURO2SWLRQV Limited Hours of Operation 2QHPHWKRGWRFRQWUROWKHHPLVVLRQVRIDOOSROOXWDQWVUHOHDVHGIURPDQRQHPHUJHQF\HQJLQHLVWROLPLWWKH KRXUVRIRSHUDWLRQ7KHHQJLQHSURSRVHGIRULQVWDOODWLRQZLOOEHIRUHPHUJHQF\XVHRQO\ H[FHSWIRUSHULRGLF UHDGLQHVVWHVWLQJ 3HU1HZ6RXUFH3HUIRUPDQFH6WDQGDUGV 1636 ,,,,WKHVHRSHUDWLRQVDUHOLPLWHGWR KRXUVSHU\HDU/LPLWHG+RXUVRI2SHUDWLRQLVWHFKQLFDOO\IHDVLEOH  8$&5 &)5 I    $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV Good Combustion Practices *RRGFRPEXVWLRQSUDFWLFHVUHIHUWRWKHRSHUDWLRQRIHQJLQHVDWKLJKFRPEXVWLRQHIILFLHQF\ZKLFKUHGXFHV WKHSURGXFWVRILQFRPSOHWHFRPEXVWLRQ7KHSURSRVHGHPHUJHQF\HQJLQHLVGHVLJQHGWRDFKLHYHPD[LPXP FRPEXVWLRQHIILFLHQF\7KHPDQXIDFWXUHULVDEOHWRSURYLGHRSHUDWLRQDQGPDLQWHQDQFHPDQXDOVWKDWGHWDLO WKHUHTXLUHGPHWKRGVWRDFKLHYHWKHKLJKHVWOHYHOVRIFRPEXVWLRQHIILFLHQF\*RRGFRPEXVWLRQSUDFWLFHVDUH WHFKQLFDOO\IHDVLEOH Use of an Appropriate Tier Certified Engine (3$QRWHGWKDWQRQURDGHQJLQHVZHUHDVLJQLILFDQWVRXUFHRIHPLVVLRQVDQGEHJDQDGRSWLQJHPLVVLRQ VWDQGDUGVIRUWKHVHHPLVVLRQXQLWVLQ7RGD\HQJLQHVDUHUHTXLUHGWRPHHWFHUWDLQHPLVVLRQOLPLWVRU WLHUUDWLQJVEDVHGRQWKHVL]HDQGPRGHO\HDU$VK*URYH¶VSURSRVHGHPHUJHQF\JHQHUDWRUHQJLQHPHHWV (3$7LHU,,,FHUWLILFDWLRQUHTXLUHPHQWV7KLVFRQWURODSSURDFKLVWHFKQLFDOO\IHDVLEOH Diesel Particulate Filters 7KLVVLPSOHWHFKQRORJ\FRQVWLWXWHVDILOWHUSODFHGLQWKHH[KDXVWSDWKZD\WRSUHYHQWWKHUHOHDVHRI30 7KHVHPD\EHFRDWHGZLWKDFDWDO\VWWRIXUWKHUFDSWXUHK\GURFDUERQHPLVVLRQV  $FFRUGLQJWR(3$¶V5HVSRQVHWR3XEOLF&RPPHQWVRQ1RWLFHRI5HFRQVLGHUDWLRQRI1(6+$3IRU5,&(DQG 1636IRU6WDWLRQDU\,&(³'LHVHOSDUWLFXODWHILOWHUVDUHDOVRSURYHQFRPPHUFLDOO\DYDLODEOHWHFKQRORJ\IRU UHWURILWDSSOLFDWLRQVWRVWDWLRQDU\HQJLQHV«DQGDUHFDSDEOHRIUHGXFLQJGLHVHO30E\SHUFHQWRU PRUH´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ltra-Low Sulfur Diesel 8OWUDORZVXOIXUGLHVHO 8/6' FRQWDLQVOHVVWKDQVXOIXUE\ZHLJKW7KHUHGXFHGVXOIXUFRQWHQWRI 8/6'UHGXFHVWKHSURGXFWLRQRI62HPLVVLRQV$GGLWLRQDOO\LWVORZVXOIXUFRQWHQWUHVXOWVLQDORZHU SRWHQWLDOIRUDJJUHJDWLRQRIVXOIXUFRQWDLQLQJFRPSRXQGVDQGWKXVUHGXFHV30HPLVVLRQV$VK*URYHZLOO FRQWLQXHWKHXVHRI8/6'IXHOIRUWKLVGLHVHOILUHGHQJLQHDVUHJXODWHGE\7LWOH9$23 Diesel Oxidation Catalyst $GLHVHOR[LGDWLRQFDWDO\VW '2& XWLOL]HVDFDWDO\VWVXFKDVSODWLQXPRUSDOODGLXPWRIXUWKHUR[LGL]HDQ HQJLQH¶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elective Catalytic Reduction 6HOHFWLYHFDWDO\WLFUHGXFWLRQ 6&5 V\VWHPVLQWURGXFHDOLTXLGUHGXFLQJDJHQWVXFKDVDPPRQLDRUXUHDLQWR DQHQJLQH¶VIOXHJDVVWUHDPSULRUWRDFDWDO\VW7KHFDWDO\VWUHGXFHVWKHWHPSHUDWXUHQHHGHGWRLQLWLDWHWKH UHDFWLRQEHWZHHQWKHUHGXFLQJDJHQWDQG12;WRIRUPQLWURJHQDQGZDWHU)RU6&5V\VWHPVWRIXQFWLRQ HIIHFWLYHO\H[KDXVWWHPSHUDWXUHVPXVWEHKLJKHQRXJK ƒ&WRƒ& WRHQDEOHFDWDO\VWDFWLYDWLRQ ZKLFKZLOOEHDFFRXQWHGIRULQRSHUDWLRQ)RUWKLVUHDVRQ6&5FRQWUROHIILFLHQFLHVDUHH[SHFWHGWREH UHODWLYHO\ORZGXULQJWKHILUVWWZHQW\WRWKLUW\  PLQXWHVDIWHUHQJLQHVWDUWXSHVSHFLDOO\GXULQJ PDLQWHQDQFHDQGWHVWLQJ7KHUHDUHDOVRFRPSOLFDWLRQVFRQWUROOLQJWKHH[FHVVDPPRQLD DPPRQLDVOLS IURP 6&5XVH6LQFHDGGRQ6&5WRD7LHUHQJLQHLVDQWLFLSDWHGWRKDYHDUHODWLYHO\ORZFRPEXVWLRQHIILFLHQF\ GXULQJPDLQWHQDQFHDQGWHVWLQJ6&5LVQRWWHFKQLFDOO\IHDVLEOHIRUHPHUJHQF\XQLWV 6WHS±5DQN5HPDLQLQJ&RQWURO7HFKQRORJLHVE\&RQWURO(IIHFWLYHQHVV (IIHFWLYHFRQWUROWHFKQRORJLHVIRUGLHVHOHQJLQHVLQFOXGHOLPLWHGKRXUVRIRSHUDWLRQJRRGFRPEXVWLRQ SUDFWLFHVXVHRIWLHUFHUWLILHGHQJLQHVGLHVHOSDUWLFXODWHILOWHUVXOWUDORZVXOIXUGLHVHODQG'2&V$OOFRQWURO WHFKQRORJLHVFRQVLGHUHGHIIHFWLYHDUHFXUUHQWO\LPSOHPHQWHGZLWKWKHH[FHSWLRQRIWKHXVHRIGLHVHO SDUWLFXODWHILOWHUVDQG'2&V%RWKWHFKQRORJLHVUHVXOWLQVLJQLILFDQWHPLVVLRQUHGXFWLRQVDQGDUHIXUWKHU HYDOXDWHGWRGHWHUPLQHWKHHFRQRPLFIHDVLELOLW\RILPSOHPHQWDWLRQ 6WHS±(YDOXDWH0RVW(IIHFWLYH&RQWUROVDQG'RFXPHQW5HVXOWV :KHQUHYLHZLQJWKHLPSOHPHQWDWLRQDQGFRVWVDVVRFLDWHGZLWKLQVWDOOLQJ'2&FRQWUROVIRUDQHPHUJHQF\XVH RULQWHUPLWWHQWXVHHQJLQH$VK*URYHIRXQGWKDW³>E@HFDXVHWKHVHHQJLQHVDUHW\SLFDOO\XVHGRQO\DIHZ QXPEHURIKRXUVSHU\HDU«>V@XFKHQJLQHVUDUHO\LIHYHUXVHWKH>GLHVHOR[LGDWLRQFDWDO\VW@W\SHRIHPLVVLRQ FRQWUROV´$GGLWLRQDOO\LQLWV0$&7*$&7HYDOXDWLRQIRUHQJLQHV(3$FRQFOXGHGIRUHPHUJHQF\ HQJLQHV³%HFDXVHWKHVHHQJLQHVDUHW\SLFDOO\XVHGRQO\DIHZQXPEHURIKRXUVSHU\HDU> KRXUVSHU\HDU SHU1)3$FRGHV @WKHFRVWVRIHPLVVLRQFRQWURODUHQRWZDUUDQWHGZKHQFRPSDUHGWRWKHHPLVVLRQ UHGXFWLRQVWKDWZRXOGEHDFKLHYHG´%DVHGRQ(3$¶VDVVHVVPHQWDQGWKHIDFWWKDWWKH5%/&FRQWDLQVQR  86(3$$OWHUQDWLYH&RQWURO7HFKQLTXHV'RFXPHQW6WDWLRQDU\'LHVHO(QJLQHV0DUFKS KWWSVZZZHSDJRYVLWHVSURGXFWLRQILOHVGRFXPHQWVBBGLHVHOBHQJBDOWHUQDWLYHFRQWUROSGI  5HVSRQVHWR3XEOLF&RPPHQWVRQ1RWLFHRI5HFRQVLGHUDWLRQRI1DWLRQDO(PLVVLRQ6WDQGDUGVIRU+D]DUGRXV$LU3ROOXWDQWVIRU 6WDWLRQDU\5HFLSURFDWLQJ,QWHUQDO&RPEXVWLRQ(QJLQHVDQG1HZ6RXUFH3HUIRUPDQFH6WDQGDUGVIRU6WDWLRQDU\,QWHUQDO &RPEXVWLRQ(QJLQHV(3$'RFNHW(3$+42$5-XQH (3$¶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೥GLHVHOILUHG೥HPHUJHQF\JHQHUDWRU೥HQJLQH೥SURSRVHGWREHLQVWDOOHGRQVLWHZLOOEHZHOOPDLQWDLQHG UHOLDEOH೥DQG(3$7LHU,,,&HUWLILHG$GGLWLRQDOO\WKHHPHUJHQF\JHQHUDWRU೥HQJLQH೥ZLOOEHRSHUDWHGDQG PDLQWDLQHGLQDFFRUGDQFHZLWKJRRGFRPEXVWLRQ೥SUDFWLFHVDQGFRPEXVWRQO\XOWUDORZVXOIXUGLHVHO೥7KH KRXUVRIRSHUDWLRQDUHUHVWULFWHGWRKRXUVIRUPDLQWHQDQFHDQGWHVWLQJSHU\HDU೥$VDUHVXOWWKH೥GLHVHO ILUHG೥HPHUJHQF\JHQHUDWRU೥HQJLQH೥PHHWV%$&7  1DWXUDO*DV(PHUJHQF\*HQHUDWRU $VK*URYHSODQVWRLQVWDOOWZR  QDWXUDOJDVILUHGHPHUJHQF\JHQHUDWRUVRQH  IRUWKHHPHUJHQF\ VXSSRUWRIWKHFRQWUROURRPEXLOGLQJDQGRQH  IRUWKHHPHUJHQF\VXSSRUWRILQIRUPDWLRQWHFKQRORJ\ V\VWHPV7KHGHVLJQUDWHRIWKHVHHQJLQHVZLOOEHKSHDFK(PLVVLRQVUHVXOWLQJIURPWKHLQVWDOODWLRQDQG RSHUDWLRQRIWKHQDWXUDOJDVILUHGHPHUJHQF\JHQHUDWRUVFRQVLVWRI12;62;&2303092&VDQG +$3V 6WHS,GHQWLI\$OO&RQWURO7HFKQRORJLHV 7KHIROORZLQJVRXUFHVZHUHUHYLHZHGWRLGHQWLI\DYDLODEOHFRQWUROWHFKQRORJLHV  Ź6&$40' Ź%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW %$$40'  Ź6DQ-RDTXLQ9DOOH\$LU3ROOXWLRQ&RQWURO'LVWULFW 6-9$3&'  Ź7H[DV&RPPLVVLRQRQ(QYLURQPHQWDO4XDOLW\ 7&(4 %$&75HTXLUHPHQWV Ź(3$¶V5$&7%$&7/$(5&OHDULQJKRXVH5%/&'DWDEDVHIRU1DWXUDO*DV*HQHUDWRUV SURFHVVW\SH 6PDOO,QWHUQDO&RPEXVWLRQ(QJLQHV>KS@±1DWXUDO*DV DQG Ź(3$¶V$LU3ROOXWLRQ&RQWURO7HFKQRORJ\)DFW6KHHWV $YDLODEOHFRQWUROWHFKQRORJLHVIRUQDWXUDOJDVILUHGHPHUJHQF\JHQHUDWRUHQJLQHVLQFOXGHWKHIROORZLQJ Ź/LPLWHG+RXUVRI2SHUDWLRQ Ź5RXWLQH0DLQWHQDQFH Ź*RRG&RPEXVWLRQ3UDFWLFHV Ź8VHRI1DWXUDO*DV Ź/HDQ%XUQ7HFKQRORJ\  5HVSRQVHWR3XEOLF&RPPHQWVRQ3URSRVHG$PPHQGPHQWVWR1DWLRQDO(PLVVLRQ6WDQGDUGVIRU+D]DUGRXV$LU3ROOXWDQWVIRU ([LVWLQJ6WDWLRQDU\5HFLSURFDWLQJ,QWHUQDO&RPEXVWLRQ(QJLQHVDQG1HZ6RXUFH3HUIRUPDQFH6WDQGDUGVIRU6WDWLRQDU\,QWHUQDO &RPEXVWLRQ(QJLQHV(3$'RFNHW(3$+42$5-DQXDU\ 0HPRUDQGXPIURP7DQ\D3DULVH$OSKD*DPPD7HFKQRORJLHVWR-DLPH3DJiQ(3$&RVWSHU7RQIRU1636IRU6WDWLRQDU\&, ,&((3$+42$50D\ &)5 J  5HDVRQDEO\$YDLODEOH&RQWURO7HFKQRORJ\ 5$&7 %$&7/RZHVW$FKLHYDEOH(PLVVLRQ5DWH /$(5   $VK*URYH/HDPLQJWRQ8WDK1RWLFHRI,QWHQW   7ULQLW\&RQVXOWDQWV Ź6HOHFWLYH&DWDO\WLF5HGXFWLRQ 6&5 DQG Ź1RQ6HOHFWLYH&DWDO\WLF5HGXFWLRQ 16&5  7KHIROORZLQJVWHSHYDOXDWHVWKHWHFKQLFDOIHDVLELOLW\RIHDFKRIWKHVHRSWLRQV 6WHS±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¶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ƒ&WRƒ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±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±(YDOXDWH0RVW(IIHFWLYH&RQWUROVDQG'RFXPHQW5HVXOWV (IIHFWLYHFRQWUROWHFKQRORJLHVIRUQDWXUDOJDVILUHGHQJLQHVLQFOXGHWKHXVHRIOLPLWHGKRXUVRIRSHUDWLRQ URXWLQHPDLQWHQDQFHJRRGFRPEXVWLRQSUDFWLFHVDQGXVHRIQDWXUDOJDV$OOFRQWUROWHFKQRORJLHVFRQVLGHUHG IHDVLEOHDWWKLVWLPHZLOOEHLPSOHPHQWHGIRUWKHSURSRVHGJHQHUDWRUHQJLQHV 6WHS±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¶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³DUHDVRXUFHV´ 1(6+$3DSSO\WRVRXUFHVLQVSHFLILFDOO\UHJXODWHGLQGXVWULDO VRXUFHFODVVLILFDWLRQV &OHDQ$LU$FW6HFWLRQ G RURQDFDVHE\FDVHEDVLV &OHDQ$LU$FW6HFWLRQ  J IRUIDFLOLWLHVQRWUHJXODWHGDVDVSHFLILFLQGXVWULDOVRXUFHW\SH  $VK*URYH¶V/HDPLQJWRQSODQWLVDPDMRUVRXUFHXQGHU86(3$¶V1(6+$3SURJUDP$VVXFKWKLVGRFXPHQW RQO\DGGUHVVHVUHJXODWRU\DSSOLFDELOLW\IRUPDMRUVRXUFHVDQGGRHVQRWLQFOXGHVWDQGDUGVIRUDUHDVRXUFHV 1(6+$36XESDUW$±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¶V$27KH5,&(ZDV FRQVWUXFWHGDIWHU-XQHDQGLVDSSOLFDEOHWR1636,,,,6WDQGDUGVRI3HUIRUPDQFHIRU6WDWLRQDU\ &RPSUHVVLRQ,JQLWLRQ,QWHUQDO&RPEXVWLRQ(QJLQHV7KHDSSOLFDEOHUHTXLUHPHQWVIRUWKHVHXQLWVDUHVDWLVILHG E\WKH1636,,,,VHFWLRQEHORZ7KH,&(¶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±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¶V$2ZDVFRQVWUXFWHGDIWHU WKHVSHFLILHGFRQVWUXFWLRQGDWHV1636,,,,LVDSSOLFDEOHWRWKLVHQJLQH  (PLVVLRQ/LPLWDWLRQ Ź(PHUJHQF\(QJLQHV x(PHUJHQF\VWDWLRQDU\&,,&(ZLWKDGLVSODFHPHQWRI•OLWHUVDQGOLWHUVSHUF\OLQGHUWKDWDUH QRWILUHSXPSHQJLQHVPXVWFRPSO\ZLWKWKHHPLVVLRQVWDQGDUGVIRUQHZQRQURDG&,HQJLQHV LQ† I  † E DQG†IRUDOOSROOXWDQWVIRUWKHVDPHPRGHO\HDUDQG PD[LPXPHQJLQHSRZHUIRUWKHLUPRGHO\HDUDQGODWHUHPHUJHQF\VWDWLRQDU\&,,&( Ź$OO(PHUJHQF\(QJLQHV x7KHVHOLPLWDWLRQVPXVWEHPHWIRUWKHOLIHRIWKHHQJLQHV  )XHO5HTXLUHPHQWV Ź2ZQHUVDQGRSHUDWRUVRIVWDWLRQDU\&,,&(VXEMHFWWRWKLVVXESDUWZLWKDGLVSODFHPHQWRIOHVVWKDQ OLWHUVSHUF\OLQGHUWKDWXVHGLHVHOIXHOPXVWXVHGLHVHOIXHOWKDWPHHWVWKHUHTXLUHPHQWVRI&)5  E IRUQRQURDGGLHVHOIXHOH[FHSWWKDWDQ\H[LVWLQJGLHVHOIXHOSXUFKDVHG RURWKHUZLVHREWDLQHG  SULRUWR2FWREHUPD\EHXVHGXQWLOGHSOHWHG Ź7KHUHTXLUHPHQWVRI&)5 E DUHDVIROORZV  SSPVXOIXUDQG  PLQLPXPFHWDQHLQGH[RIRUPD[LPXPDURPDWLFFRQWHQWRIYROXPHSHUFHQW  ϮϮ&)5 E  Ϯϯ&)5 Ϯϰ&)5 E   8QLYHUVDO,QGXVWULDO*DVHV//&_12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV    0RQLWRULQJ5HTXLUHPHQWV Ź(DFK&,,&(WKDWGRHVQRWPHHWWKHVWDQGDUGVDSSOLFDEOHWRQRQHPHUJHQF\HQJLQHVPXVWLQVWDOODQRQ UHVHWWDEOHKRXUPHWHUSULRUWRVWDUWXSRIWKHHQJLQH Ź(DFK&,,&(HTXLSSHGZLWKDGLHVHOSDUWLFXODWHILOWHUWRFRPSO\ZLWKWKHHPLVVLRQVWDQGDUGVLQ† WKHGLHVHOSDUWLFXODWHILOWHUPXVWEHLQVWDOOHGZLWKDEDFNSUHVVXUHPRQLWRUWKDWQRWLILHVWKHRZQHURU RSHUDWRUZKHQWKHKLJKEDFNSUHVVXUHOLPLWRIWKHHQJLQHLVDSSURDFKHG  &RPSOLDQFH5HTXLUHPHQWV Ź2SHUDWHPDLQWDLQLQVWDOODQGFRQILJXUHWKHVWDWLRQDU\&,LQWHUQDOFRPEXVWLRQHQJLQHDQGFRQWUROGHYLFH DFFRUGLQJWRWKHPDQXIDFWXUHU VHPLVVLRQUHODWHGZULWWHQLQVWUXFWLRQV Ź&KDQJHRQO\WKRVHHPLVVLRQUHODWHGVHWWLQJVWKDWDUHSHUPLWWHGE\WKHPDQXIDFWXUHU Ź0HHWWKHUHTXLUHPHQWVRI&)5DQGRU  (PHUJHQF\(QJLQH  Ź7KHHQJLQHPD\EHRSHUDWHGIRUKRXUVSHUFDOHQGDU\HDUIRUPDLQWHQDQFHFKHFNVUHDGLQHVVWHVWLQJ SHULRGVZKHUHWKHUHLVDGHYLDWLRQRIYROWDJHRUIUHTXHQF\RISHUFHQWRUJUHDWHUEHORZVWDQGDUG YROWDJHRUIUHTXHQF\DQGRUXSWRKRXUVSHUFDOHQGDU\HDULQQRQHPHUJHQF\VLWXDWLRQV Ź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Ϯϲ&)5 E  Ϯϳ&)5 D   Ϯϴ&)5 D   Ϯϵ&)5 D   ϯϬ&)5 I  ϯϭ&)5 E  ϯϮ&)5 F  &)5 H   8QLYHUVDO,QGXVWULDO*DVHV//&_12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV    (PLVVLRQ/LPLWDWLRQ 2ZQHUVRURSHUDWRUVRIQRQURDG6,HPHUJHQF\HQJLQHVPDQXIDFWXUHGDIWHU-DQXDU\ZLWKDPD[LPXP HQJLQHSRZHUJUHDWHUWKDQKSDUHGHVFULEHGLQ16366XESDUW----VHFWLRQ H 7KHVHHQJLQHV PXVWPHHWWKHIROORZLQJHPLVVLRQOLPLWVLQDFFRUGDQFHZLWK16366XESDUW----7DEOH  Ź12;JKSKU Ź&2JKSKUDQG Ź92&JKSKU  &RPSOLDQFH5HTXLUHPHQWV Ź3XUFKDVLQJDQHQJLQHFHUWLILHGDFFRUGLQJWRSURFHGXUHVVSHFLILHGLQWKLVVXESDUWIRUWKHVDPHPRGHO \HDU Ź.HHSDPDLQWHQDQFHSODQDQGUHFRUGVRIFRQGXFWHGPDLQWHQDQFHDQGPDLQWDLQDQGRSHUDWHWKHHQJLQHLQ DPDQQHUFRQVLVWHQWZLWKJRRGDLUSROOXWLRQFRQWUROSUDFWLFHIRUPLQLPL]LQJHPLVVLRQV Ź2SHUDWHWKHHPHUJHQF\VWDWLRQDU\,&(IRUQRPRUHWKDQKRXUVSHUFDOHQGDU\HDUIRUWHVWLQJDQG PDLQWHQDQFHSHULRGVZKHUHWKHUHLVDGHYLDWLRQRIYROWDJHRUIUHTXHQF\RISHUFHQWRUJUHDWHUEHORZ VWDQGDUGDQGRUXSWRKRXUVSHUFDOHQGDU\HDULQQRQHPHUJHQF\VLWXDWLRQV7KHUHLVQRWLPHOLPLW RQWKHXVHRIDQHPHUJHQF\VWDWLRQDU\,&(LQHPHUJHQF\VLWXDWLRQV Ź2ZQHUVDQGRSHUDWRUVRIVWDWLRQDU\6,QDWXUDOJDVILUHGHQJLQHVPD\RSHUDWHWKHLUHQJLQHVXVLQJ SURSDQHIRUDPD[LPXPRIKRXUVSHU\HDUDVDQDOWHUQDWLYHIXHOVROHO\GXULQJHPHUJHQF\RSHUDWLRQV EXWPXVWNHHSUHFRUGVRIVXFKXVH  1RWLILFDWLRQ5HSRUWLQJ5HFRUGNHHSLQJ Ź0DLQWDLQUHFRUGVRIDOOQRWLILFDWLRQVVXEPLWWHGWRFRPSO\ZLWKWKLVVXESDUWDQGDOOGRFXPHQWDWLRQ VXSSRUWLQJDQ\QRWLILFDWLRQ Ź0DLQWDLQUHFRUGVRIPDLQWHQDQFHFRQGXFWHGRQWKH6,HQJLQHV Ź0DLQWDLQGRFXPHQWDWLRQGHPRQVWUDWLQJWKHHQJLQHLVFHUWLILHGWRPHHWWKHDSSURSULDWHHPLVVLRQ VWDQGDUGV Ź7KHSURSRVHGHPHUJHQF\HQJLQHPHHWVWKHDSSOLFDEOHHPHUJHQF\JHQHUDWRUHPLVVLRQOLPLWDWLRQVGHWDLOHG LQ&)5 G 7KHRZQHURURSHUDWRUPXVWNHHSUHFRUGVRIWKHKRXUVRIRSHUDWLRQRIWKH HPHUJHQF\HQJLQHUHFRUGHGWKURXJKDQRQUHVHWWDEOHKRXUPHWHU7KHRZQHURURSHUDWRUPXVWDOVR GRFXPHQWKRZPDQ\KRXUVDUHVSHQWIRUHPHUJHQF\RSHUDWLRQDQGZKDWFODVVLILHGWKHRSHUDWLRQDVDQ HPHUJHQF\ Ź1RQHPHUJHQF\RSHUDWLRQRIWKHQDWXUDOJDVILUHGHQJLQHZLOOEHOLPLWHGWRKRXUVSHU\HDULQFOXVLYH RIWHVWLQJDQGPDLQWHQDQFH$VK*URYHZLOOGHPRQVWUDWHFRPSOLDQFHWKURXJKUHFRUGNHHSLQJ  &)5 H  &)5 E   &)5 E  L  &)5 G   &)5 G   &)5 H  &)5 D   &)5 D   &)5 D   &)5 E   8QLYHUVDO,QGXVWULDO*DVHV//&_12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV$-1 )2506 Form 1 Date June 2023_____________ Notice of Intent (NOI) Application Checklist Company __________________ Utah Division of Air Quality New Source Review Section Source Identification Information [R307-401-5] 1. Company name, mailing address, physical address and telephone number † 2. Company contact (Name, mailing address, and telephone number)† 3. Name and contact of person submitting NOI application (if different than 2)† 4. Source Universal Transverse Mercator (UTM) coordinates † 5. Source Standard Industrial Classification (SIC) code † 6. Area designation (attainment, maintenance, or nonattainment)† 7. Federal/State requirement applicability (NAAQS, NSPS, MACT, SIP, etc.)† 8. Source size determination (Major, Minor, PSD)† 9. Current Approval Order(s) and/or Title V Permit numbers † NOI Application Information:[R307-401] † † † † † † † † † † †N/A † †N/A † A. Air quality analysis (air model, met data, background data, source impact analysis) †N/A † Detailed description of the project and source process Discussion of fuels, raw materials, and products consumed/produced Description of equipment used in the process and operating schedule Description of changes to the process, production rates, etc. Site plan of source with building dimensions, stack parameters, etc. Best Available Control Technology (BACT) Analysis [R307-401-8] $BACT analysis for all new and modified equipment Emissions Related Information: [R307-401-2(b)] $Emission calculations for each new/modified unit and site-wide (Include PM10, PM2.5,NOx, SO2, CO, VOCs, HAPs, and GHGs) %References/assumptions, SDS, for each calculation and pollutant &All speciated HAP emissions (list in lbs/hr) Emissions Impact Analysis – Approved Modeling Protocol [R307-410] $Composition and physical characteristics of effluent (emission rates, temperature, volume, pollutant types and concentrations) Nonattainment/Maintenance Areas – Major NSR/Minor (offsetting only)[R307-403] $NAAQS demonstration, Lowest Achievable Emission Rate, Offset requirements %Alternative site analysis, Major source ownership compliance certification Major Sources in Attainment or Unclassified Areas (PSD) [R307-405, R307-406] %Visibility impact analysis, Class I area impact  6LJQDWXUHRQ$SSOLFDWLRQ †N/A † Note: The Division of Air Quality will not accept documents containing confidential information or data. Documents containing confidential information will be returned to the Source submitting the application. ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Ash Grove Cement Company $-2 Form 2 Date June 2023 Company Information/Notice of Intent (NOI) Utah Division of Air Quality New Source Review Section Application for: Ƒ Initial Approval Order Ƒ Approval Order Modification General Owner and Source Information 1.Company name and mailing address: ____________________________ ____________________________ ____________________________ Phone No.: Fax No.: 2. Company** contact for environmental matters: ____________________________ Phone no.: Email:_______________________ ** Company contact only; consultant or independent contractor contact information can be provided in a cover letter 3. Source name and physical address (if different from above):______________________ B_____________________ ______________________ Phone no.: Fax no.: 4. Source Property Universal Transverse Mercator coordinates (UTM), including System and Datum: UTM:BBBBBBBBBBBBBBBBBBBBBBBBB X:_____B_________BBBBBBBBBBBB Y:_________BBBBBBBBBBBBBBBBBB 5. The Source is located in:__________________ County 6.Standard Industrial Classification Code (SIC) __ __ __ __ 7. If request for modification, AO# to be modified: DAQE #__________________BBBBBBBBBBDATED: ____/____/____ 8. Brief (50 words or less) description of process. Electronic NOI 9. A complete and accurate electronic NOI submitted to DAQ Permitting Mangers Jon Black (jlblack@utah.gov) or Alan Humpherys (ahumpherys@utah.gov) can expedite review process. Please mark application type. Hard Copy Submittal Electronic Copy Submittal Ƒ %RWK Authorization/Singnature I hereby certify that the information and data submitted in and with this application is completely true, accurate and complete, based on reasonable inquiry made by me and to the best of my knowledge and belief. Signature: Title: _______________________________________ Name (Type or print) Telephone Number: Email: Date: ✔ Ash Grove Cement Company Cody Watkins P.O. Box 38069 (385)225-0615 cody.watkins@ashgrove.comLeamington, UT 84638 Zone 12Hwy. 132 Easting: 397,000mLeamington, UT 84638 (385)225-0615 Northing: 4,379,850m Juab 3 2 41 AN103030030-22 Ash Grove Cement Company produces portland cement in Leamington, UT. Part of the cement process requires raw materials to be heated within a kiln. To prevent product loss, the kiln requires an emergency generator to supply emergency power. Ash Grove is proposing to install two new natural gas emergency generators as well as replace one old diesel-fired emergency generator with a newer model of similar size. ✔ $-3 Plant Manager Paul Pederson 435-857-1212 paul.pederson@ashgrove.com 6/8/2023 Form 4 Company____________________________ Project Information Site ______________________________ Utah Division of Air Quality New Source Review Section Process Data -For Modification/Amendment ONLY 1. Permit Number_______________________________ If submitting a new permit, then use Form 3 Requested Changes 2. Name of process to be modified/added: _______________________________ End product of this process: _______________________________ 3. Permit Change Type: New Increase* Equipment Process Condition Change ____________________ Other ______________________________ Other ______________________________ Other ______________________________ 4. Does new emission unit affect existing permitted process limits? Yes No 5. Condition(s) Changing: 6. Description of Permit/Process Change** 7. New or modified materials and quantities used in process. ** Material Quantity Annually 8. New or modified process emitting units ** Emitting Unit(s) Capacity(s) Manufacture Date(s) *If the permit being modified does not include CO2e or PM2.5, the emissions need to be calculated and submitted to DAQ, which may result in an emissions increase and a public comment period. **If additional space is required, please generate a document to accommodate and attach to form. Ash Grove Cement Company Leamington, UT DAQE-AN103030030-22 Emergency Generator Portland Cement ✔✔ Add Equipment to AO N/A Cat C15 GC Diesel Generator Set 500.00 (2) Cat DG200 GC Spark-Ignited Generator Set 200.00 $-4 Company___________________________ 6LWH_____________________________ Form  Emissions Information Criteria/GHGs/ HAP’s Utah Division of Air Quality New Source Review Section Potential to Emit* Criteria Pollutants & GHGs Criteria Pollutants Permitted Emissions (tons/yr) Emissions Increases (tons/yr) Proposed Emissions (tons/yr) PM10 Total PM10 Fugitive PM2.5 NOx SO2 CO VOC VOC Fugitive NH3 Greenhouse Gases CO2e CO2e CO2e CO2 CH4 N2O HFCs PFCs SF6 Total CO2e *Potential to emit to include pollution control equipment as defined by R307-401-2. Hazardous Air Pollutants**(**Defined in Section 112(b) of the Clean Air Act ) Hazardous Air Pollutant*** Permitted Emissions (tons/yr) Emission Increase (tons/yr) Proposed Emission (tons/yr) Emission Increase (lbs/hr) Total HAP *** Use additional sheets for pollutants if needed 4FF"UUBDIFEGPS &NJTTJPO*OGPSNBUJPO 4FF"UUBDIFEGPS &NJTTJPO*OGPSNBUJPO 4FF"UUBDIFEGPS &NJTTJPO*OGPSNBUJPO Ash Grove Cement Company Leamington, UT $-5 Utah Division of Air Quality New Source Review Section Company: ___________________ Site/Source: _________________ Form 17 Date:June 2023_______________ Diesel Powered Standby Generator Company Information 1. Company Name and Address: ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Phone Number: _______________________________ Fax Number: _______________________________ 2. Company Contact: ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Phone Number: _______________________________ Fax Number: _______________________________ 3. Installation Address: ____________________________________________ County where facility is located: __________________ ____________________________________________ ____________________________________________ Latitude, Longitude and UTM Coordinates of Facility ____________________________________________ __________________________________________ Phone Number: _______________________________ __________________________________________ Fax Number: _______________________________ Standby Generator Information 4. Engines: Maximum Maximum Emission Rate Date the engine Manufacturer Model Rated Hours of Rate of NOx was constructed Horsepower or Kilowatts Operation grams/BHP-HR or reconstructed _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ Attach Manufacturer-supplied information 5. Calculated emissions for this equipment: PM10____________ Lbs/hr _____________Tons/yr PM2.5____________ Lbs/hr _____________Tons/yr NOx_____________Lbs/hr______________Tons/yr SOx ____________ Lbs/hr______________Tons/yr CO _____________Lbs/hr______________Tons/yr VOC ____________Lbs/hr______________Tons/yr CO2 ____________Tons/yr CH4 ____________ Tons/yr N2O ____________Tons/yr HAPs___________ Lbs/hr (speciate)__________Tons/yr (speciate) Submit calculations as an appendix. If other pollutants are emitted, include the emissions in the appendix. Ash Grove Cement Company Leamington, UT Ash Grove Cement Company P.O. Box 38069 Leamington, UT 84638 Mr. Cody Watkins P.O. Box 38069 Email: cody.watkins@ashgrove.com (835) 225-0615 (385) 225-0615 Hwy. 132 Leamington, UT 84638 Juab County Easting: 397,000m, Northing: 4,379,850m, Zone 12 CAT, C15 GC, 500 kW, __, 4.6, ____ See Appendix B $-6 Utah Division of Air Quality New Source Review Section Company: ___________________ Site/Source: _________________ Form 17a Date: June 2023_______________ Natural Gas Standby Generator Company Information 1. Company Name and Address: ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Phone Number: _______________________________ Fax Number: _______________________________ 2.Company Contact: ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Phone Number: _______________________________ Fax Number: _______________________________ 3. Installation Address: ____________________________________________ County where facility is located: __________________ ____________________________________________ ____________________________________________ Latitude & Longitude or UTM Coordinates of Facility ____________________________________________ __________________________________________ Phone Number: _______________________________ __________________________________________ Fax Number: _______________________________ Standby Generator Information 4. Engines: Maximum Maximum Emission Rate Date the Engine Manufacturer Model Rated Hours of Rate of NOx Was Constructed Horsepower or Kilowatts Operation grams/BHP-HR or Reconstructed _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ Attach Manufacturer supplied information 5. Calculated emissions for this equipment: PM10____________ Lbs/hr _____________Tons/yr PM2.5____________ Lbs/hr _____________Tons/yr NOx_____________Lbs/hr______________Tons/yr SOx ____________ Lbs/hr _____________Tons/yr CO _____________Lbs/hr _____________Tons/yr VOC ____________ Lbs/hr _____________Tons/yr CO2 ____________Tons/yr CH4 ____________ Tons/yr N2O ____________Tons/yr HAPs___________ Lbs/hr (speciate)__________Tons/yr (speciate) Submit calculations as an appendix. If other pollutants are emitted, include the emissions in the appendix. 6HH$SSHQGL[% Ash Grove Cement Company Leamington, UT Ash Grove Cement Company P.O. Box 38069 Leamington, UT 84638 Mr. Cody Watkins P.O. Box 38069 Email: cody.watkins@ashgrove.com (835) 225-0615 (385) 225-0615 Hwy. 132 Leamington, UT 84638 Juab County Easting: 397,000m, Northing: 4,379,850m, Zone 12 CAT, C15 GC, 500 kW, __, 4.6, ____ $-7  $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV%-1 (0,66,21&$/&8/$7,21 Description Value Unit Potential Daily Operating Hours 24 (hr/day) Potential Annual Operating Days 365 (day/yr) Type of Equipment/Activities Quantity Maximum Area (Acres) Throughputs (tpy) Coal Stockpile 11.0020,000 AF Stockpile 1 0.25 8,000 Total 2 1.25 28,000 Empty Vehicle3,4 Loaded Vehicle5 Semi-Trucks: Coal Offsite to Stockpile to Offsite1 0.80 1.60 22.50 64.00 Haul Trucks: Coal to & from Coal Grate1 0.80 1.60 30.80 129.20 Semi-Trucks: AF from Offsite to Stockpile to Offsite1 0.50 0.50 22.50 64.00 Haul Trucks: AF to & from Coal Grate1 0.50 0.50 30.80 129.20 Loaders: Coal2 --0.03 33.44 40.44 Loaders: AF2 --0.03 33.44 40.44 2 150 Semi-Truck Weight:22.50 Semi-Truck Payload:41.50 Haul Truck Weight:30.80 ton Haul Truck Payload:98.40 ton 66,877 7.00 Table B-1. Stockpile Operating Parameters 1. Information received from Cody Watkins on 4/19/23 Table B-2. Stockpiles and Throughputs1 Table B-3. Paved Roads Vehicle Weight (tons)Road Source One-Way Distance (miles/haul) Round-Trip Distance (miles/haul) 1. Information received from Cody Watkins on 4/19/23. Coal distances are not round trip distances and were doubled to get total distance per haul. AF distances are round trip. 2.Loader distance to the stockpile then to the haul truck then back to stockpile. ft 4. Loader weight from 980 Medium Wheel Loader specifications from https://www.cat.com/en_US/products/new/equipment/wheel-loaders/medium-wheel- loaders/109400.html lb 3.Vehicle weights and payloads per historical Emissions Inventory data. ton ton ton 5.Loader bucket size, received from Cody Watkins on 4/19/23. Ash Grove Cement Company | Emission Calculations Trinity Consultants %-2 Table B-4. Annual Emissions PM10 PM2.5 NOx CO SO2 VOC Total HAP CO2e CAT C15 Generator (Replacement)2.52E-03 2.52E-03 0.39 0.05 0.04 2.52E-03 4.54E-04 43.64 Detroit Diesel (Removal)-0.06 -0.06 -0.87 -0.19 -0.06 -0.07 -7.76E-04 -32.07 Natural Gas Generator (Control Room Building)2.56E-03 2.56E-03 0.07 0.13 7.76E-05 0.03 4.27E-03 15.44 Natural Gas Generator (Main Office)2.56E-03 2.56E-03 0.07 0.13 7.76E-05 0.03 4.27E-03 15.44 Stockpiles 1.44 0.42 ------------ Loader Drops 0.057.22E-03-------- -- -- Roads 0.140.01-------- -- -- Project Totals 1.57 0.39 -0.35 0.13 -0.02 3.80E-04 8.22E-03 42.46 Modeling Limit1 15 -40 100 40 - See HAP Summary - Modeling Required?No No No No No No No No Current Permitted PTE2 234.79 230.35 1,352 13,045 192.50 59.38 31.98 1,053,009 New PTE 236.36 230.74 1,351 13,045 192.48 59.38 31.99 1,053,051 Major Source Thresholds3,4 100.00 100.00 100.00 100.00 100.00 100.00 10/25 75,000 Exceeding Major Source Thresholds?Yes Yes Yes Yes Yes No Yes Yes 3.Major source thresholds are defined in 40 CFR section 51.165(a)(1)(iv)(A). 4.Total HAP threshold is given in 40 CFR Section 63.2 under definition of a Major Source. Equipment Annual Emission Rate (tpy) 1.Modeling Limits are given in UDAQ Emissions Impact Assessment Guidelines in Table 1: Total Controlled Emission Rates for New Sources, or Emissions Increase. 2.These emission totals represent the limit given in Approval Order DAQE-AN103030030-22. Ash Grove Cement Company | Emission Calculations Trinity Consultants %-3 Table B-5. Project Annual HAP Emissions Project Change in Hourly Emissions ETV1 (lb/hr) (lb/hr) 1,1,2,2-Tetrachloroethane 1.33E-04 2.53 No 1,1,2-Trichloroethane 8.07E-05 20.08 No 1,3-Butadiene 3.50E-03 0.54 No 1,3-Dichloropropene 6.70E-05 1.67 No Acetaldehyde 1.49E-02 13.96 No Acrolein 1.39E-02 0.07 No Benzene 1.25E-02 0.59 No Carbon Tetrachloride 9.34E-05 3.87 No Chlorobenzene 6.81E-05 16.94 No Chloroform 7.23E-05 17.97 No Ethylene Dibromide 1.12E-04 - No Formaldehyde 1.09E-01 0.11 No Methanol 1.61E-02 102.47 No Methylene chloride (Dichloromethane)2.17E-04 63.91 No Naphthalene 1.21E-03 19.29 No Total PAH 1.13E-03 - No Styrene 6.28E-05 31.35 No Toluene 4.44E-03 27.73 No Vinyl Chloride 3.79E-05 0.31 No Xylenes 2.06E-03 159.78 No 1. The Emission Threshold Value (ETV) assumes >100 m distance to the fenceline and vertically unrestricted releases. Pollutant Modeling Required? Ash Grove Cement Company | Emission Calculations Trinity Consultants %-4 PM10 PM2.5 PM10 PM2.5 PM10 PM2.5 PM10 PM2.5 Tent Area Coal Stockpile 1.00 1 None 6.3 1.85 6.30 1.85 0.26 0.08 1.15 0.34 Primary Facility AF Stockpile 0.25 1 None 6.3 1.85 1.58 0.46 0.07 0.02 0.29 0.08 1.25 - -- - 7.88 2.31 0.33 0.10 1.44 0.42 TSP emission factor:0.38 PM10 content: PM2.5 content: EF(PM2.5) [uncontrolled, inactive] = EF(PM2.5) [uncontrolled, active] * EF(PM10) [uncontrolled, inactive] / EF(PM10) [uncontrolled, active] 4.Where no PM10 or PM2.5 emission factor was given, the following values were used to solve for the emission factor, per U.S. EPA AP-42, Section 13.2.5, page 13.2.5-3 (Industrial Wind Erosion): 0.50 0.075 5.PM10 uncontrolled, inactive emission factors for stockpiles taken from AP-42 Fourth Edition, Table 8.19.1-1. 6.PM2.5 uncontrolled, inactive emission factor for stockpiles is based on the ratio of the uncontrolled, active PM10 and PM2.5 emission factors. Total 1.PM10 emission factors for stockpiles taken from AP-42, Fourth Edition Table 8.19.1-1, per UDAQ guidance. 2.PM2.5 emission factors for stockpiles calculated using data from AP-42 Appendix B.2 Table B.2-2, per UDAQ guidance. 3.Per U.S. EPA AP-42, Section 11.9 (Western Surface Coal Mining), Table 11.9-4; August 1998, for Disturbed Area. Where: ton/acre-yr Daily Active Emissions (lb/day) Hourly Active Emissions (lb/hr) Annual Active Emissions (tpy) Table B-6. Stockpiles - Potential Emissions Location Source Maximum Area (Acres)Quantity Control Uncontrolled Active Emission Factor (lb/day/acre)1,2,3 Ash Grove Cement Company | Emission Calculations Trinity Consultants %-5 (tpy)PM10 PM2.5 (%)PM10 PM2.5 PM10 PM2.5 Coal Loader to Stockpile 20,000 4.87E-04 7.38E-05 0% 0.03 4.04E-03 4.87E-03 7.38E-04 Coal Loader to Haul Truck 20,000 4.87E-04 7.38E-05 0% 0.03 4.04E-03 4.87E-03 7.38E-04 Coal Haul Truck to Kiln 20,000 4.87E-04 7.38E-05 0% 0.03 4.04E-03 4.87E-03 7.38E-04 AF Loader to Stockpile 8,000 2.76E-03 4.18E-04 0% 6.04E-02 9.15E-03 1.10E-02 1.67E-03 AF Loader to Haul Truck 8,000 2.76E-03 4.18E-04 0% 6.04E-02 9.15E-03 1.10E-02 1.67E-03 AF Haul Truck to Kiln 8,000 2.76E-03 4.18E-04 0% 6.04E-02 9.15E-03 1.10E-02 1.67E-03 0.26 0.04 0.05 7.22E-03 E = Emission factor where: PM PM10 PM2.5 k =0.74 0.35 0.053 U = 10.00 MCOAL = 6.90 MAF = 2.00 2. No control measures will be implemented Annual Emissions (tpy) Total Loading Emissions 1. Uncontrolled emission factors using the "drop equation" contained in U.S. EPA AP-42, Section 13.2.4 (Aggregate Handling and Storage Piles), November 2006: Particle size multiplier (dimensionless) Mean wind speed (mph) is given per UDAQ's Average Annual Wind Speed map, November 2000. Coal material moisture content (%) previously recommended by UDAQ. AF material moisture content (%) previously recommended by UDAQ. Table B-7. Loader Drops Emissions (Supporting Operations) Emission Activity Potential Total Annual Throughput Uncontrolled Emission Factor1 (lb/ton) Control Efficiency2 Daily Emissions (lb/day) Ash Grove Cement Company | Emission Calculations Trinity Consultants %-6 PM10 PM2.5 PM10 PM2.5 Paved, Watered, Vacuum Swept 0.75 0.08 0.14 0.01 Total 0.75 0.08 0.14 0.01 Empty Vehicle Loaded Vehicle Daily (VMT/day) Annual (VMT/yr) Semi-Trucks: Coal Offsite to Stockpile to Offsite 20,000 22.50 64.00 41.50 2 1.60 3.20 1,168 Haul Trucks: Coal to & from Coal Grate 20,000 30.80 129.20 98.40 1 1.60 1.60 584 Semi-Trucks: AF from Offsite to Stockpile to Offsite 8,000 22.50 64.00 41.50 1 0.50 0.50 182.50 Haul Trucks: AF to & from Coal Grate 8,000 30.80 129.20 98.40 1 0.50 0.50 182.50 Loaders: Coal 20,000 33.44 40.44 7.00 8 0.03 0.23 82.95 Loaders: AF 8,000 33.44 40.44 7.00 4 0.03 0.11 41.48 1. Annual Days Vehicles Operate: PM10 PM2.5 Unpaved None 0% 2.44 0.24 Paved Paved Road Surface with Vacuum Sweeping and Watering 95%0.12 0.01 where E = Size-specific emission factor (lb/VMT) k, a, b = Constants for equation 1a PM PM10 PM2.5 k = 4.90 1.50 0.15 a =0.70 0.90 0.90 b =0.45 0.45 0.45 s = surface material silt content (%) s = 4.80 W = 55.47 1.Emission controls for vehicular traffic on paved and unpaved roads per UDAQ guidelines: Emission Factors for Paved and Unpaved Haul Roads, January 2015, in conjunction with U.S. EPA AP-42 Section 13.2.2, November 2006. Mean wieght of all vehicles (tons), per UDAQ guidance given in Emission Factors for Paved and Unpaved Haul Roads, January 2015. Road Surface Controls 1 Control Efficiency (%) Haul Truck Emission Factors 1 (lb/VMT) Per UDAQ guidance given in Emission Factors for Paved and Unpaved Haul Roads, January 2015. Total Vehicle Miles TraveledTotal Travel Distance per Haul (miles/haul) 365 Road Source Controlled Emissions Daily Emissions (lb/day)1 Annual Emissions (tpy)1 1.Daily and annual controlled emissions are calculated by applying the controlled emission factor (per UDAQ's control efficiencies) to the vehicular miles traveled per day (paved and unpaved). Daily Emissions (lb/day) = Miles Travelled per Day (VMT/day) * Uncontrolled Emission Factor (lb/VMT) * (1 - ߟ) Annual Emissions (tpy) = Miles Travelled per Day (VMT/yr) * Uncontrolled Emission Factor (lb/VMT) * (1 - ߟ) Table B-8. Roads Emissions - PTE Emissions Table B-9. Paved Roads Emissions - Traveling Parameters (Supporting Operations) Table B-10. Roads Emissions - Emission Factors Road Source Product Throughput (tpy) Vehicle Weights (tons)Vehicle Haul Capacity (ton/haul) Hauls/Day1 Ash Grove Cement Company | Emission Calculations Trinity Consultants %-7 Table B-11. Shipping Replacement Generator - Engine Parameters Parameter CAT C15 Replacement Date Installed 2023 Manufacturer1 CAT Model No.1 C15 GC Fuel Used Diesel Fuel Sulfur Content2 15% Rated Horsepower (bhp)1 762.00 Heat Input (MMBtu/hr)3 5.33 Operational Detail Value Potential Annual Hours of Operation (hr/yr): 100.00 Pollutant Emission Factors Units Notes CO 0.60 (g/hp-hr)1 NOx 4.60 (g/hp-hr)1 VOC 0.03 (g/hp-hr)1, 3 SO2 0.15 (lb/MMBtu)2 PM 0.03 (g/hp-hr)1 PM10 0.03 (g/hp-hr)1 PM2.5 0.03 (g/hp-hr)1 CO2 73.96 (kg/MMBtu)4 CH4 3.00E-03 (kg/MMBtu)5 N2O 6.00E-04 (kg/MMBtu) 5 CO2e 74.21 (kg/MMBtu)6 Potential Emissions Potential Emissions (lb/hr) (tpy) CO 1.01 0.05 1 NOX 7.73 0.39 1 VOC 0.05 2.52E-03 1 SO2 0.81 0.04 2 PM 0.05 2.52E-03 1 PM10 0.05 2.52E-03 1 PM2.5 0.05 2.52E-03 1 CO2 869.73 43.49 2 CH4 0.04 1.76E-03 2 N2O 7.06E-03 3.53E-04 2 CO2e 872.71 43.64 3 Emission Factor Potential Emissions Potential Emissions (lb/MMBtu)1 (lb/hr)2 (tpy) Benzene 7.76E-04 4.14E-03 2.07E-04 Toluene 2.81E-04 1.50E-03 7.49E-05 Xylenes 1.93E-04 1.03E-03 5.15E-05 Formaldehyde 7.89E-05 4.21E-04 2.10E-05 Acetaldehyde 2.52E-05 1.34E-04 6.72E-06 Acrolein 7.88E-06 4.20E-05 2.10E-06 Naphthalene 1.30E-04 6.93E-04 3.47E-05 Total PAH 2.12E-04 1.13E-03 5.65E-05 44 .14E-03 2.07E-04 99 .09E-03 4.54E-04 2.Emission Rate (lb/hr) = Heat Input (MMBtu/hr) × Emission Factor (lb/MMBtu). 5.Emission factor from 40 CFR 98 Table C2. 1.Emission factors from AP-42 Section 3.4. 6. CO2e is the sum of GHG constituents multiplied by their respective global warming potential (i.e. 1 for CO2, 25 for CH4, and 298 for N2O), per Table A-1, 40 CFR 98, Subpart A. Table B-14. Replacement Generator - Criteria Pollutant and GHG Emissions Pollutant Table B-15. Replacement Generator - HAPs Emissions Pollutant MM ax HAP TTotal HAPs Notes 1.Emission Rate (lb/hr) = Rated Horsepower × Emission Factor 2.Emission Rate (lb/hr) = Heat Input × Emission Factor 3. CO2e is the sum of GHG constituents multiplied by their respective global warming potential (i.e. 1 for CO2, 25 for CH4, and 298 for N2O), per Table A-1, 40 CFR 98, Subpart A. 4, Emission factor from 40 CFR 98 Table C1. 1. Emissions per manufacturer specifications. Table B-12. Replacement Generator - Operational Details 3.To convert from bhp to MMBtu/hr, an average brake-specific fuel consumption of 7,000 Btu/hp-hr was used per AP-42 Section 3.4, Table 3.4-1 1.Values come from the manufacturer's specification sheet. 2.Per 40 CFR 80 Subpart I, maximum sulfur content of ULSD is 15 ppm (i.e. 0.0015%). Table B-13. Replacement Generator - Criteria Pollutant and GHG Emission Factors 2.Emission factor from AP-42 Section 3.4. 3.All hydrocarbon (HC) emissions are conservatively assumed to be VOC. Ash Grove Cement Company | Emission Calculations Trinity Consultants%-8 Table B-16. Detroit Diesel Removal - Engine Parameter Parameter Detroit Diesel Removal Date Manufactured Pre-1990 Manufacturer1 Detroit Diesel Model No.1 71237305 Fuel Used Diesel Fuel Sulfur Content2 15% Rated Horsepower (bhp)3 560.00 Heat Input (MMBtu/hr)4 3.92 Operational Detail Value Potential Annual Hours of Operation (hr/yr): 100.00 Pollutant Emission Factors Units Notes CO 6.68E-03 (lb/hp-hr)1 NOx 0.031 (lb/hp-hr)1 VOC 2.47E-03 (lb/hp-hr)1, 2 SO2 2.05E-03 (lb/hp-hr)1 PM10 2.20E-03 (lb/hp-hr)1 PM2.5 2.20E-03 (lb/hp-hr)1 CO2 73.96 (kg/MMBtu)3 CH4 3.00E-03 (kg/MMBtu)4 N2O 6.00E-04 (kg/MMBtu) 4 CO2e 74.21 (kg/MMBtu) 5 Potential Emissions Potential Emissions (lb/hr) (tpy) CO -3.74E+00 -0.19 1 NOX -17.36 -0.87 1 VOC -1.38 -0.07 1, 3 SO2 -1.15 -0.06 1 PM10 -1.23 -0.06 1 PM2.5 -1.23 -0.06 1 CO2 -639.17 -31.96 2 CH4 -0.03 -1.30E-03 2 N2O -5.19E-03 -2.59E-04 2 CO2e -641.36 -32.07 4 Emission Factor Potential Emissions Potential Emissions (lb/MMBtu)1 (lb/hr)2 (tpy) Benzene 9.33E-04 -3.66E-03 -1.83E-04 Toluene 4.09E-04 -1.60E-03 -8.02E-05 Xylenes 2.85E-04 -1.12E-03 -5.59E-05 1,3-Butadiene 3.91E-05 -1.53E-04 -7.66E-06 Formaldehyde 1.18E-03 -4.63E-03 -2.31E-04 Acetaldehyde 7.67E-04 -3.01E-03 -1.50E-04 Acrolein 9.25E-05 -3.63E-04 -1.81E-05 Naphthalene 8.48E-05 -3.32E-04 -1.66E-05 Total PAH 1.68E-04 -6.59E-04 -3.29E-05 --1.53E-04 -7.66E-06 --0.02 -7.76E-04 1. Per the unit's nameplate. 4. To convert from bhp to MMBtu/hr, an average brake-specific fuel consumption of 7,000 Btu/hp-hr was used per AP-42 Section 3.4, Table 3.4-1. 3. Per AO DAQE-AN103030030-22. 2. Per 40 CFR 80 Subpart I, maximum sulfur content of ULSD is 15 ppm (i.e. 0.0015%). Table B-17. Detroit Diesel Removal - Operational Details Notes 1. Emission Rate (lb/hr) = Rated Horsepower × Emission Factor 1. Emission factors from AP-42 Section 3.3. Table B-18. Detroit Diesel Removal- Criteria Pollutant and GHG Emission Factors 2. All hydrocarbon (HC) emissions are conservatively assumed to be VOC. 5. CO2e is the sum of GHG constituents multiplied by their respective global warming potential (i.e. 1 for CO2, 25 for CH4, and 298 for N2O), per Table A-1, 40 CFR 98, Subpart A. Table B-19. Detroit Diesel Removal - Criteria Pollutants and GHG Emissions Pollutant 1. Emission factors from AP-42 Section 3.3. 3. Emission factor from 40 CFR 98 Table C1. 4. Emission factor from 40 CFR 98 Table C2. 2. Emission Rate (lb/hr) = Heat Input (MMBtu/hr) × Emission Factor (lb/MMBtu). 3. All hydrocarbon (HC) emissions are conservatively assumed to be VOC. 2. Emission Rate (lb/hr) = Heat Input × Emission Factor 4. CO2e is the sum of GHG constituents multiplied by their respective global warming potential (i.e. 1 for CO2, 25 for CH4, and 298 for N2O), per Table A-1, 40 CFR 98, Subpart A. Table B-20. Detroit Diesel Removal- HAPs Emissions Pollutant MM ax HAP TTotal HAPs Ash Grove Cement Company | Emission Calculations Trinity Consultants %-9 Table B-21. Utilities - Natural Gas Generator - Engine Parameters Source Designation KG40 Fuel Used Natural Gas Number of Engines 1 Rated Horsepower (bhp)1 304.00 Rated Horsepower (kW)1 200.00 Annual Operating Hours per Engine (hr/yr)100.00 Fuel Consumption (ft3/hr)1 2,571 Total Fuel Consumption (ft3/yr)257,100 High Heat Value (MMBtu/ft3)2 1.03E-03 Heat Input (MMBtu/hr)3 2.64 2. 40 CFR Chapter 1 Subchapter C Part 98 Subpart C Table C-1 Table B-22. Utilities - Natural Gas Generator - Criteria Pollutant Potential Emissions Value Units (tpy)(lb/hr) NOX 2.00 g/hp-hr 0.07 1.34 CO 4.00 g/hp-hr 0.13 2.68 PM10 (filterable)0.02 lb/MMBtu 2.56E-03 0.05 PM2.5 (filterable)0.02 lb/MMBtu 2.56E-03 0.05 SO2 5.88E-04 lb/MMBtu 7.76E-05 1.55E-03 VOC 1.00 g/hp-hr 0.03 0.67 Table B-23. Utilities - Engines - Natural Gas Generator - Greenhouse Gas Emissions Pollutant Global Warming Potential1 Emission Factor (kg/MMBtu)2 Total Potential CO2e Emissions (tpy)3 CO2 153.0615.43 CH4 25 1.00E-03 7.27E-03 N2O 298 1.00E-04 8.67E-03 15.44 Table B-24. Utilities - Natural Gas Generator - HAP Potential Emissions Emission Factors 1,3 (lb/MMBtu)(lb/hr)(tpy) 1,1,2,2-Tetrachloroethane 2.53E-05 6.67E-05 3.34E-06 1,1,2-Trichloroethane 1.53E-05 4.04E-05 2.02E-06 1,3-Butadiene 6.63E-04 1.75E-03 8.74E-05 1,3-Dichloropropene 1.27E-05 3.35E-05 1.68E-06 Acetaldehyde 2.79E-03 7.36E-03 3.68E-04 Acrolein 2.63E-03 6.94E-03 3.47E-04 Benzene 1.58E-03 4.17E-03 2.08E-04 Carbon Tetrachloride 1.77E-05 4.67E-05 2.33E-06 Chlorobenzene 1.29E-05 3.40E-05 1.70E-06 Chloroform 1.37E-05 3.61E-05 1.81E-06 Ethylene Dibromide 2.13E-05 5.62E-05 2.81E-06 Formaldehyde 2.05E-02 5.41E-02 2.70E-03 Methanol 3.06E-03 8.07E-03 4.04E-04 Methylene chloride (Dichloromethane)4.12E-05 1.09E-04 5.43E-06 Naphthalene 9.71E-05 2.56E-04 1.28E-05 Polycyclic Aromatic Hydrocarbons (PAH)1.41E-04 3.72E-04 1.86E-05 Styrene 1.19E-05 3.14E-05 1.57E-06 Toluene 5.58E-04 1.47E-03 7.36E-05 Vinyl Chloride 7.18E-06 1.89E-05 9.47E-07 Xylenes 1.95E-04 5.14E-04 2.57E-05 0.05 2.70E-03 0.09 4.27E-03 1. Global Warming Potentials are obtained from Subpart A of 40 CFR 98, Table A–1 "Global Warming Potentials." 1. Per Cat specification sheet for engine model DG200 GC Pollutant Emission Factors1,2 Actual Emissions Total CO2e Emissions (tpy)3 3. To convert from ft3/hr to MMBtu/hr, fuel consumption (ft3/hr) x High heat value (MMBtu/scf) 1. Emission factors, excluding PM10, PM2.5, PM (condensable), and SO2, per CAT DG200 GC Certificate of Conformity. PM10, PM2.5, and SO2 emission factors are taken from AP-42 Section 3.2 (Natural Gas-fired Reciprocating Engines) Table 3.2-3.2. The emission factor for PM10 is conservatively assumed to be equal to sum of PM10 filterable and PM condensable emission factors. The emission factor for PM2.5 is conservatively assumed to be equal to the sum of PM2.5 filterable and PM condensable emission factors. TTotal HAPs 2. The Emission Threshold Value (ETV) assumes a >100m distance to the fenceline and vertically unrestricted release. 1. HAP pollutant emission factors per AP-42, Section 3.2 (Natural Gas-fired Reciprocating Engines), Table 3.2-3. 3. PAH does not include Naphthalene due to specified UDAQ reporting threshold. 2. Emission factors for carbon dioxide, methane, and nitrous oxide using natural gas fuel are obtained from 40 CFR 98, Table C-1 and C–2 to Subpart C. 3. CO2e Potential Emissions (tpy) = [EFCO2 (kg/MMBtu) * GWPCO2 + EFCH4 (kg/MMBtu) * GWPCH4 + EFN2O (kg/MMBtu) * GWPN2O ]* Maximum Heat Input (MMBtu/hr)* Annual Hours of Operation (hr/yr)*kg to lbm conversion (lb/kg)/ 2,000 (lbs/ton)*number of engines. Pollutant Actual Emissions MM ax HAP Ash Grove Cement Company | Emission Calculations Trinity Consultants %-10 Table B-25. Utilities - Natural Gas Generator - Engine Parameters Source Designation KG40 Fuel Used Natural Gas Number of Engines 1 Rated Horsepower (bhp)1 304.00 Rated Horsepower (kW)1 200.00 Annual Operating Hours per Engine (hr/yr)100.00 Fuel Consumption (ft3/hr)1 2,571 Total Fuel Consumption (ft3/yr)257,100 High Heat Value (MMBtu/ft3)2 1.03E-03 Heat Input (MMBtu/hr)3 2.64 2. 40 CFR Chapter 1 Subchapter C Part 98 Subpart C Table C-1 Table B-26. Utilities - Natural Gas Generator - Criteria Pollutant Potential Emissions Value Units (tpy)(lb/hr) NOX 2.00 g/hp-hr 0.07 1.34 CO 4.00 g/hp-hr 0.13 2.68 PM10 (filterable)0.02 lb/MMBtu 2.56E-03 0.05 PM2.5 (filterable)0.02 lb/MMBtu 2.56E-03 0.05 SO2 5.88E-04 lb/MMBtu 7.76E-05 1.55E-03 VOC 1.00 g/hp-hr 0.03 0.67 Table B-27. Utilities - Engines - Natural Gas Generator - Greenhouse Gas Emissions Pollutant Global Warming Potential1 Emission Factor (kg/MMBtu)2 Total Potential CO2e Emissions (tpy)3 CO2 153.0615.43 CH4 25 1.00E-03 7.27E-03 N2O 298 1.00E-04 8.67E-03 15.44 Table B-28. Utilities - Natural Gas Generator - HAP Potential Emissions Emission Factors 1,3 (lb/MMBtu)(lb/hr)(tpy) 1,1,2,2-Tetrachloroethane 2.53E-05 6.67E-05 3.34E-06 1,1,2-Trichloroethane 1.53E-05 4.04E-05 2.02E-06 1,3-Butadiene 6.63E-04 1.75E-03 8.74E-05 1,3-Dichloropropene 1.27E-05 3.35E-05 1.68E-06 Acetaldehyde 2.79E-03 7.36E-03 3.68E-04 Acrolein 2.63E-03 6.94E-03 3.47E-04 Benzene 1.58E-03 4.17E-03 2.08E-04 Carbon Tetrachloride 1.77E-05 4.67E-05 2.33E-06 Chlorobenzene 1.29E-05 3.40E-05 1.70E-06 Chloroform 1.37E-05 3.61E-05 1.81E-06 Ethylene Dibromide 2.13E-05 5.62E-05 2.81E-06 Formaldehyde 2.05E-02 5.41E-02 2.70E-03 Methanol 3.06E-03 8.07E-03 4.04E-04 Methylene chloride (Dichloromethane)4.12E-05 1.09E-04 5.43E-06 Naphthalene 9.71E-05 2.56E-04 1.28E-05 Polycyclic Aromatic Hydrocarbons (PAH)1.41E-04 3.72E-04 1.86E-05 Styrene 1.19E-05 3.14E-05 1.57E-06 Toluene 5.58E-04 1.47E-03 7.36E-05 Vinyl Chloride 7.18E-06 1.89E-05 9.47E-07 Xylenes 1.95E-04 5.14E-04 2.57E-05 0.05 2.70E-03 0.09 4.27E-03 Pollutant Actual Emissions 1. Per Cat specification sheet for engine model DG200 GC 3. To convert from ft3/hr to MMBtu/hr, fuel consumption (ft3/hr) x High heat value (MMBtu/scf) Pollutant Emission Factors1,2 Actual Emissions 1. Emission factors, excluding PM10, PM2.5, PM (condensable), and SO2, per CAT DG200 GC Certificate of Conformity. PM10, PM2.5, and SO2 emission factors are taken from AP-42 Section 3.2 (Natural Gas-fired Reciprocating Engines) Table 3.2-3.2. The emission factor for PM10 is conservatively assumed to be equal to sum of PM10 filterable and PM condensable emission factors. The emission factor for PM2.5 is conservatively assumed to be equal to the sum of PM2.5 filterable and PM condensable emission factors. Total CO2e Emissions (tpy)3 1. Global Warming Potentials are obtained from Subpart A of 40 CFR 98, Table A–1 "Global Warming Potentials." 2. Emission factors for carbon dioxide, methane, and nitrous oxide using natural gas fuel are obtained from 40 CFR 98, Table C-1 and C–2 to Subpart C. 3. CO2e Potential Emissions (tpy) = [EFCO2 (kg/MMBtu) * GWPCO2 + EFCH4 (kg/MMBtu) * GWPCH4 + EFN2O (kg/MMBtu) * GWPN2O ]* Maximum Heat Input (MMBtu/hr)* Annual Hours of Operation (hr/yr)*kg to lbm conversion (lb/kg)/ 2,000 (lbs/ton)*number of engines. MM ax HAP TTotal HAPs 1. HAP pollutant emission factors per AP-42, Section 3.2 (Natural Gas-fired Reciprocating Engines), Table 3.2-3. 2. The Emission Threshold Value (ETV) assumes a >100m distance to the fenceline and vertically unrestricted release. 3. PAH does not include Naphthalene due to specified UDAQ reporting threshold. Ash Grove Cement Company | Emission Calculations Trinity Consultants %-11  $VK*URYH&HPHQW&RPSDQ\12,$LU3HUPLW$SSOLFDWLRQ 7ULQLW\&RQVXOWDQWV&-1 021,725,1*&21',7,216 7KLVDSSHQGL[FRQWDLQVH[LVWLQJRSHUDWLQJPRQLWRULQJDQGUHFRUGNHHSLQJFRQGLWLRQVFRQVLVWHQWZLWK FXUUHQWO\OLVWHGFRQGLWLRQVIRUH[LVWLQJHTXLSPHQWLQWKH/HDPLQJWRQ3ODQW¶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¶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