AQ_F_0200031_20130122_PRMT_Permit

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Air Quality
Pat McCrory Sheila C. Holman. John E. Skvarla, III
Governor Director Secretary
January 22, 2013
Mr. Harry McPherson
Vice-President
Schneider Mills, Inc.
P0 Box 519
Taylorsville,NC 28681
Subject: Air Permit No. 04863R08
Schneider Mills, Inc.
Taylorsville,Alexander County,North Carolina
Permit Class:Synthetic Minor
Facility ID# 0200031
Dear Mr. McPherson:
In accordance with your completed application received January 10, 2013, we are
forwarding herewith Permit No. 04863R08 to Schneider Mills, Inc., Taylorsville, Alexander
County,North Carolina for the construction and operation of air emissions sources or air cleaning
devices and appurtenances. Additionally, any emissions activities determined from your air permit
application as meeting the exemption requirements contained in 15A NCAC 2Q .0102 have been
listed for information purposes as an "ATTACHMENT" to the enclosed air permit. Please note the
records retention requirements are contained in General Condition 2 of the General Conditions and
Limitations.
If any parts, requirements, or limitations contained in this permit are unacceptable to you,
you have the right to request a formal adjudicatory hearing within 30 days following receipt of this
permit,identifying the specific issues to be contested. Such a request will stay the effectiveness of
the entire permit. This hearing request must be in the form of a written petition, conforming to G.S.
15013-23 of the North Carolina General Statutes, and filed with the Office of Administrative
Hearings, 6714 Mail Service Center, Raleigh,NC 27699-6714. The form for requesting a formal
adjudicatory hearing may be obtained upon request from the Office of Administrative Hearings.
Unless a request for a hearing is made pursuant to G.S. 150B-23, this air permit shall be final and
binding.
You may request modification of your air permit through informal means pursuant to G.S.
150B-22. This request must be submitted in writing to the Director and must identify the specific
Mooresville Regional Office-Division of Air Quality
610 East Center Avenue,Suite 301,Mooresville,North Carolina 28115
Phone:[phone]/FAX:[phone]
s Internet:www,ncair.org
An Equal Opportunity 1 Affirmative Action Employer-Made in part by Recycled Paper

Harry McPherson
January 22, 2013
Page 2
provisions or issues for which the modification is sought.Please note that the permit will become
final and binding regardless of a request for informal modification unless a request for a hearing is
also made under G.S. 150B-23.
Unless exempted by a condition of this permit or the regulations, construction of new
air pollution sources or air cleaning devices, or modifications to the sources or air cleaning
devices described in this permit must be covered under a permit issued by the Division of Air
Quality prior to construction. Failure to do so is a violation of G.S. 143-215.108 and may
subject the Permittee to civil or criminal penalties as described in G.S. 143-215.114A and 143-
215.114B.
This permit shall be effective from January 22,2013 until November 30, 2015, is
nontransferable to future owners and operators, and shall be subject to the conditions and limitations
as specified therein.
Changes have been made to the permit stipulations. The Permittee is responsible for
carefully reading the entire permit and evaluating the requirements of each permit'
stipulation.The Permittee shall comply with all terms, conditions, requirements, limitations
and restrictions set forth in this permit. Noncompliance with any permit condition is grounds
for enforcement action, for permit termination, revocation and reissuance, or modification, or
for denial of a permit renewal application. Specific changes and additions are summarized
below (note: this list may not include all changes and additions):
- The exempt diesel-fired emergency fire pump (ID No. I-GEN) is subject to 15A NCAC 2D
.1111, "Maximum Achievable Control Technology" (40 CFR 63, Subpart ZZZZ), which will be
added under 2Q .0102(d) "Federal and State Rules Applicable to Sources Exempted from Air
Permitting Requirements".
- A condition for 15A NCAC 2D .1111, "Generally Achievable Control Technology"was added
to the permit since the boiler(B-1) is subject to the boiler GACT, Subpart JJJJJJ.
Should you have any questions concerning this matter,please contact Jennifer Womick at(704)
663-1699.
Sincerely,
Ronald E. Slack
Regional Air Quality Supervisor
JAW
Enclosures
c: Mooresville Regional Office
C:\Users\DFHayes\AppData\Local\Microsoft\Windows\Temporary Internet Files\Low\Content.IE5\D30LM60D\Permit[1].doc

NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF AIR QUALITY
AIR PERMIT NO. 04863R08
Issue Date: January 22, 2013 Effective Date: January 22, 2013
Expiration Date: November 30, 2015 Replaces Permit: 04863R07
To construct and operate air emission source(s) and/or air cleaning device(s), and for the
discharge of the associated air contaminants into the atmosphere in accordance with the provisions
of Article 2 1 B of Chapter 143, General Statutes of North Carolina(NCGS) as amended, and other
applicable Laws, Rules and Regulations,
Schneider Mills, Inca
1170 Highway 16 North
Taylorsville,Alexander County,North Carolina
Permit Class:Synthetic Minor
Facility ID# 0200031
(the Permittee) is hereby authorized to construct and operate the air emissions sources and/or air
cleaning devices and appurtenances described below:
Emission Emission Source Control Control System
Source ID Description System ID Description
B-1 No.2 fuel oil/No.4 fuel oil-fired
boiler(14.7 million Btu per hour N/A N/A
maximum heat input)
in accordance with the completed application 0200031.12A received January 10, 2013 including
any plans, specifications,previous applications, and other supporting data, all of which are filed
with the Department of Environment and Natural Resources, Division of Air Quality (DAQ) and are
incorporated as part of this permit.
This permit is subject to the following specified conditions and limitations including any
TESTING, REPORTING,OR MONITORING REQUIREMENTS:
A. SPECIFIC CONDITIONS AND LIMITATIONS
1. Any air emission sources or control devices authorized to construct and operate above must
be operated and maintained in accordance with the provisions contained herein. The
Permittee shall comply with applicable Environmental Management Commission
Regulations, including Title 15A North Carolina Administrative Code (NCAC), Subchapter
2D .0202, 2D .0503, 2D .0516, 2D .0521, 2D .0535, 2D .0540, 2D .1111 (40 CFR 63,
Subpart JJJJJJ), 2Q .0102 and 2Q .0315.

Permit No. 04863R08
Page 2
2. PERMIT RENEWAL AND EMISSION INVENTORY REQUIREMENT - The Permittee,
at least 90 days prior to the expiration date of this permit, shall request permit renewal by
letter in accordance with 15A NCAC 2Q .0304(d) and(f). Pursuant to 15A NCAC 2Q
.0203(i), no permit application fee is required for renewal of an existing air permit(without
a modification request). The renewal.request(with AA application form) should be
submitted to the Regional Supervisor, DAQ. Also, at least 90 days prior to the expiration
date of this permit,the Permittee shall submit the air pollution emission inventory report
(with Certification Sheet) in accordance with 15A NCAC 2D .0202,pursuant to N.C.
General Statute 143 215.65. The report shall be submitted to the Regional Supervisor,DAQ
and shall document air pollutants emitted for the 2014 calendar year.
3. PARTICULATE CONTROL REQUIREMENT - As required by 15A NCAC 2D .0503
"Particulates from Fuel Burning Indirect Heat Exchangers," particulate matter emissions
from the fuel burning indirect heat exchangers shall not exceed the allowable emission rates
listed below:
Source Emission Limit
(lbs/million Btu)
ffo_.__2__fue1 oil/No. 4 fuel oil-fired boiler(14.7 million Btu per 0.45
hour maximum heat input) (B-1)
l 1
4. SULFUR DIOXIDE CONTROL REQUIREMENT - As required by 15A NCAC 213 .0516
"Sulfur Dioxide Emissions from Combustion Sources," sulfur dioxide emissions from boiler
(ID No. B-1) shall not exceed 2.3 pounds per million Btu heat input.
5. VISIBLE EMISSIONS CONTROL REQUIREMENT -As required by 15A NCAC 2D
.0521 "Control of Visible Emissions," visible emissions from the emission sources,
manufactured after July 1, 1971, shall not be more than 20 percent opacity when averaged
over a six-minute period, except that six-minute periods averaging not more than 87 percent
opacity may occur not more than once in any hour nor more than four times in any 24-hour
period. However, sources which must comply with 15A NCAC 2D .0524 "New Source
Performance Standards" or .1110 "National Emission Standards for Hazardous Air
Pollutants" must comply with applicable visible emissions requirements contained therein.
6. NOTIFICATION REQUIREMENT -.As required by 15A NCAC 2D .0535, the Permittee of
a source of excess emissions that last for more than four hours and that results from a
malfunction, a breakdown of process or control equipment or any other abnormal
conditions, shall:
a. Notify the Director or his designee of any such occurrence by 9:00 a.m. Eastern time
of the Division's next business day of becoming aware of the occurrence and
describe:
i. the name and location of the facility,
ii. the nature and cause of the malfunction or breakdown,
iii. the time when the malfunction or breakdown is first observed,

Permit No. 04863R08
Page 3
iv. the expected duration, and
V. an estimated rate of emissions.
b. Notify the Director or his designee immediately when the corrective measures have
been accomplished.
This reporting requirement does not allow the operation of the facility in excess of
Environmental Management Commission Regulations.
7. FUGITIVE DUST CONTROL REQUIREMENT - As required by 15A NCAC 2D .0540
"Particulates from Fugitive Dust Emission Sources," the Permittee shall not cause or allow
fugitive dust emissions to cause or contribute to substantive complaints or excess visible
emissions beyond the property boundary. If substantive complaints or excessive fugitive
dust emissions from the facility are observed beyond the property boundaries for six minutes
in any one hour(using Reference Method 22 in 40 CFR, Appendix A), the owner or
operator may be required to submit a fugitive dust plan as described in 2D .0540(f).
"Fugitive dust emissions" means particulate matter that does not pass through a process
stack or vent and that is generated within plant property boundaries from activities such as:
unloading and loading areas, process areas stockpiles,stock pile working, plant parking lots,
and plant roads (including access roads and haul roads).
8. GENERALLY AVAILABLE CONTROL TECHNOLOGY - For the boiler(ID No. B-1),
the Permittee shall comply with all applicable provisions, including the notification, testing,
and monitoring requirements contained in Environmental Management Commission
Standard 15A NCAC 2D .1111, as promulgated in 40 CFR 63, Subpart JJJJJJ, " National
Emission Standards for Hazardous Air.Pollutants for Area Sources: Industrial, Commercial,
and Institutional Boilers", including Subpart A "General Provisions."
a. Compliance Dates (40 CFR 63.11196) -The owner or operator of an existing source
subject to a work practice or management practice standard of a tune-up is required
to comply with this final rule no later than March 21, 2014. The owner or operator of
an existing source subject to an energy assessment requirement is required to comply
with this final rule no later than March 21, 2014.
b. Compliance Requirements-As required by 15A NCAC 2D .1111,the Permittee
shall comply with the following requirements:
i. General Duty Clause(40 CFR 63.11205(a)) - At all times the Permittee shall
operate and maintain any affected source, including associated air pollution
control equipment and monitoring equipment, in a manner consistent with
safety and good air pollution control practices for minimizing emissions.
ii. Boiler Tune-up (40 CFR 63.11223) -An initial boiler tune-up is required by
March 21,2012. A biennial tune-up is also required and shall be conducted
no more than 25 months after the previous tune-up. If the unit is not operating
on the required date for a tune-up,the tune-up must be conducted within one
week of startup. The tune-up shall include the following:

Permit No. 04863R08
Page 4
A. As applicable, inspect the burner, and clean or replace any
components of the burner as necessary(the Permittee may delay the
burner inspection until the next scheduled unit shutdown, but must
inspect each burner at least once every 36 months).
B. Inspect the flame pattern, as applicable, and adjust the burner as
necessary to optimize the flame pattern. The adjustment should be
consistent with the manufacturer's specifications, if available.
C. Inspect the system controlling the air-to-fuel ratio, as applicable, and
ensure that it is correctly calibrated and functioning properly-
D. Optimize total emissions of carbon monoxide. This optimization
should be consistent with the manufacturer's specifications, if
available.
E. Measure the concentrations in the effluent stream of carbon monoxide
in parts per million,by volume, and oxygen in volume percent,before
and after the adjustments are made (measurements may be either on a
dry or wet basis, as long as it is the same basis before and after the
adjustments are made).
F. Maintain onsite a biennial report(see item c. below) containing:
.I. The concentrations of CO in the effluent stream in parts per
million,by volume, and oxygen in volume percent, measured
before and after the tune-up of the boiler.
II. A description of any corrective actions taken as a part of the
tune-up of the boiler.
III. The type and amount of fuel used over the 12 months prior to
the biennial tune-up of the boiler.
iii. Energy Assessment (40 CFR 63.11214(c)) - A one-time initial energy
assessment is required by March 21, 2014. The energy assessment must be
performed by a qualified energy assessor. An energy assessment completed
on or after January 1, 2008,that meets or is amended to meet the energy
assessment requirements in this section satisfies the energy assessment
requirement. The energy assessment must include:
A. A visual inspection of the boiler system.
B. An evaluation of operating characteristics of the facility,
specifications of energy using systems, operating and maintenance
procedures, and unusual operating constraints.
C. Inventory of major systems consuming energy from affected boilers.

Permit No. 04863R08
Page 5
D. A review of available architectural and engineering plans, facility
operation and maintenance procedures and logs, and fuel usage.
E. A list of major energy conservation measures.
F. A comprehensive report detailing the ways to improve efficiency,the
cost of specific improvements, benefits, and the time frame for
recouping those investments.
c. Notification and Reporting Requirements - In addition to the notification and
reporting requirements of the Environmental Protection Agency(EPA),the
Permittee is required to NOTIFY the Regional Supervisor, DAQ, in WRITING, of
the following:
i. Initial Notification(per 40 CFR 63.9(b) and 40 CFR 63.11225(a)(2)) is
required by January 20, 2014.
ii. Notification of Compliance Status (40 CFR 63.11225(a)(4)) is required by
July 19, 2014.
iii. Biennial Compliance Report must be prepared by March 1 of every other
year starting March 1, 2015 and submitted upon request, unless the source
experiences any deviations from the applicable requirements then the report
must be submitted by March 15. The report must meet the requirements of 40
CFR 63.11225(b)(1-4).
d. Recordkeeping Requirements - In addition to any other recordkeeping requirements
of the EPA, the Permittee shall maintain the following records as defined under 40
CFR 63.11225(c):
i. Copies of all required notifications.
ii. Maintain records to document conformance with the work practices, emission
reduction measures, and management practices:
A. Tune-up records -records must identify each boiler,the date of tune-
up,the procedures followed for tune-up, and the manufacturer's
specifications to which the boiler was tuned.
B. A copy the Energy Assessment required by 40 CFR 63.11214(c).
C. Records documenting the fuel type(s)used monthly by each boiler,
including, but not limited to, a description of the fuel, including
whether the fuel has received a nonwaste determination by the
Permittee or EPA, and the total fuel usage amount with units of
measure. If the Permittee combusts nonhazardous secondary materials
that have been determined not to be solid waste pursuant to 40 CFR
241.3(b)(1), the Permittee must keep a record which documents how
the secondary material meets each of the legitimacy criteria. The

Permit No. 04863R08
Page 6
records may be annual,monthly, or periodic, depending on fuel
delivery frequencies.
iii. Malfunction Records -Records of the occurrence and duration of each
malfunction of the boiler, or of the associated air pollution control and
monitoring equipment. Records of actions taken during periods of
malfunction to minimize emissions in accordance with the general duty to
minimize emissions in 40 CFR 63.11205(a), including corrective actions to
restore the malfunctioning boiler, air pollution control, or monitoring
equipment to its normal or usual manner of operation.
iv. Record Retention- You must keep each record for 5 years following the date
of each recorded action.
9. Federal and State Rules Applicable to Sources Exempted from Air Permitting Requirements
- Your facility is subject to the following federal and state rules:
40 CFR 63 -NESHAP/MACT -- Subpart ZZZZ -- Reciprocating Internal
Combustion Engines
which are applicable to some of the emission sources at your facility listed on the
"Insignificant/Exempt Activities" list attached to this permit. The purpose of this permit
condition is to inform you of your compliance obligations to these applicable rules as they
are enforceable.
10. LIMITATION TO AVOID 15A NCAC 2Q .0501 - Pursuant to 15A NCAC 2Q .0315
"Synthetic Minor Facilities," to avoid the applicability of 15A NCAC 2Q .0501 "Purpose of
Section and Requirement for a Permit," as requested by the Permittee, facility-wide
emissions shall be less than the following:
Pollutant Emission Limit
(Tons per consecutive 12-month period)
SO2 100
a. Operations Restrictions - To ensure emissions do not exceed the limitations above,
the following restrictions shall apply:
i. The amount of No. 4 fuel oil combusted shall be less than 634,000 gallons
per consecutive 12-month period when burning fuel that is 2.1 percent by
weight sulfur.
ii. If multiple fuels are used, emissions should be determined using the sum of
the individual emissions rates.
b. Recordkeeping Requirements
i. The Permittee shall record monthly and total annually the following:

Permit No. 04863R08
Page 7
A. the amount of No. 4 fuel oil combusted.
B. The facility-wide S02 emissions.
ii. Fuel supplier certification shall be kept on-site and made available to DAQ
personnel upon request.
c. Reporting Requirements - Within 30 days after each calendar year, regardless of the
actual emissions,the Permittee shall submit the following:
i. emissions and/or operational data listed below. The data should include
monthly and 12 month totals for the previous 12 month period.
A. the amount of No. 4 fuel oil combusted, and
B. the facility-wide S02 emissions.
B. GENERAL CONDITIONS AND LIMITATIONS
1. TWO COPIES OF ALL DOCUMENTS, REPORTS, TEST DATA, MONITORING DATA,
NOTIFICATIONS, REQUESTS FOR RENEWAL, AND ANY OTHER INFORMATION
REQUIRED BY THIS PERMIT shall be submitted to the:
Regional Air Quality Supervisor
North Carolina Division of Air Quality
Mooresville Regional Office
610 East Center Avenue, Suite 301
Mooresville,NC 28115
704-663-1699
For identification purposes, each submittal should include the facility name as listed on the
permit,the facility identification number, and the permit number,
2. RECORDS RETENTION REQUIREMENT- Any records required by the conditions of this
permit shall be kept on site and made available to DAQ personnel for inspection upon
request. These records shall be maintained in a form suitable and readily available for
expeditious inspection and review. These records must be kept on site for a minimum of 2
years,unless another time period is otherwise specified.
3. ANNUAL FEE PAYMENT-Pursuant to 15A NCAC 2Q .0203(a),the Permittee shall pay
the annual permit fee within 30 days of being billed by the DAQ. Failure to pay the fee in a
timely manner will cause the DAQ to initiate action to revoke the permit.
4. EQUIPMENT RELOCATION - A new air permit shall be obtained by the Permittee prior to
establishing, building, erecting, using, or operating the emission sources or air cleaning
equipment at a site or location not specified in this permit.

Permit No. 04863R08
Page 8
5. REPORTING REQUIREMENT - Any of the following that would result in previously
unpermitted,new, or increased emissions must be reported to the Regional Supervisor,
DAQ:
a. changes in the information submitted in the application regarding facility emissions;
b. changes that modify equipment or processes of existing permitted facilities; or
c. changes in the quantity or quality of materials processed.
If appropriate, modifications to the permit may then be made by the DAQ to reflect any
necessary changes in the permit conditions. In no case are.any new or increased emissions
allowed that will cause a violation of the emission limitations specified herein.
6. This permit is subject to revocation or modification by the DAQ upon a determination that
information contained in the application or presented in the support thereof.is incorrect,
conditions under which this permit was granted have changed, or violations of conditions
contained in this permit have occurred. The facility shall be properly operated and
maintained at all times in a manner that will effect an overall reduction in air pollution.
Unless otherwise specified by this permit, no emission source may be operated without the
concurrent operation of its associated air cleaning device(s) and appurtenances.
7. This permit is nontransferable by the Permittee. Future owners and operators must obtain a
new air permit from the DAQ.
8. This issuance of this permit in no way absolves the Permittee of liability for any potential
civil penalties which may be assessed for violations of State law which have occurred prior
to the effective date of this permit.
9. This permit does not relieve the Permittee of the responsibility of complying with all
applicable requirements of any Federal, State,or Local water quality or land quality control
authority.
10. Reports on the operation and maintenance of the facility shall be submitted by the Permittee
to the Regional Supervisor, DAQ at such intervals and in such form and detail as may be
required by the DAQ. Information required in such reports may include, but is not limited
to,process weight rates, firing rates,hours of operation, and preventive maintenance
schedules.
11. A violation of any term or condition of this permit shall subject the Permittee to enforcement
pursuant to G.S. 143-215.114A, 143-215.114B, and 143-215.114C, including assessment of
civil and/or criminal penalties.
12. Pursuant to North Carolina General Statute 143-215.3(a)(2), no person shall refuse entry or
access to any authorized representative of the DAQ who requests entry or access for
purposes of inspection, and who presents appropriate credentials,nor shall any person
obstruct,hamper, or interfere with any such representative while in the process of carrying
out his official duties. Refusal of entry or access may constitute grounds for permit
revocation and assessment of civil penalties.

Permit No. 04863R08
Page 9
13. The Permittee must comply with any applicable Federal, State, or Local requirements
governing the handling, disposal, or incineration of hazardous, solid, or medical wastes,
including the Resource Conservation and Recovery Act(RCRA) administered by the
Division of Waste Management.
14. PERMIT RETENTION REQUIREMENT The Permittee shall retain a current copy of the
air permit at the site. The Permittee must make available to personnel of the DAQ, upon
request, the current copy of the air permit for the site.
15. CLEAN AIR ACT SECTION 112(r) REQUIREMENTS - Pursuant to 15A NCAC 2D .2100
"Risk Management Program," if the Permittee is required to develop and register a risk
management plan pursuant to Section 112(r) of the Federal Clean Air Act, then the
Permittee is required to register this plan with the USEPA in accordance with 40 CFR Part
68.
16. PREVENTION OF ACCIDENTAL RELEASES - GENERAL DUTY -Pursuant to Title I
Part A Section 112(r)(1) of the Clean Air Act "Hazardous Air Pollutants - Prevention of
Accidental Releases - Purpose and General Duty," although a risk management plan may not
be required, if the Permittee produces,processes, handles, or stores any amount of a listed
hazardous substance,the Permittee has a general duty to take such steps as are necessary to
prevent the accidental release of such substance and to minimize the consequences of any
release. This condition is federally-enforceable only.
17. GENERAL EMISSIONS TESTING AND REPORTING REQUIREMENTS - If emissions
testing is required by this permit, or the DAQ, or if the Permittee submits emissions testing
to the DAQ in support of a permit application or to demonstrate compliance,the Permittee
shall perform such testing in accordance with 15A NCAC 2D .2600 and follow all DAQ
procedures including protocol approval,regional notification, report submittal, and test
results approval.
Permit issued this the 22°d of January, 2013.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Ronald E. Slack
Regional Air Quality Supervisor
By Authority of the Environmental Management Commission
Air Permit No. 04863R08

ATTACHMENT to Permit No. 04863R08,January 22, 2013
Insignificant/Exempt Activities
Source Exemption Source of Source of Title V
Regulation TAPS? Pollutants?
F___IDO-1 -propane-fired yarn drying oven 2Q .0102
(3.5 million BTU per hour maximum (c)(2)(E)(i) No Yes
heat input)
IDO-2 -propane-fired yarn drying oven 2Q .0102
(3.5 million BTU per hour maximum FNo Yes
heat input) (c)(2)(E)(i)
I-GEN - diesel-fired emergency fire 2Q .0102
pump (115 hp) subject to NESHAP, (c)(2)(B)(v)(I1I) Yes Yes
Subpart ZZZZ
1. Because an activity is exempted from being required to have a permit or permit modification
does not mean that the activity is exempted from an applicable requirement or that the owner
or operator of the source is exempted from demonstrating compliance with any applicable
requirement.
2. When applicable, emissions from stationary source activities identified above shall be
included in determining compliance with the permit requirements for toxic air pollutants
under 15A NCAC 2D .1100 "Control of Toxic Air Pollutants" or 2Q .0711 "Emission Rates
Requiring a Permit."