STATEMENT OF BASIS. NAICS Description: Motor and Generator Manufacturing NAICS Code:

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1 STATEMENT OF BASIS For the issuance of Draft Air Permit # 0996-AOP-R24 1. PERMITTING AUTHORITY: Arkansas Department of Environmental Quality 5301 Northshore Drive North Little Rock, Arkansas APPLICANT: Baldor Electric Company 5711 R.S. Boreham Jr. Street Fort Smith, Arkansas PERMIT WRITER: Franck Houenou 4. NAICS DESCRIPTION AND CODE: NAICS Description: Motor and Generator Manufacturing NAICS Code: ALL SUBMITTALS: Date of Application Type of Application (New, Renewal, Modification, Deminimis/Minor Mod, or Administrative Amendment) Short Description of Any Changes That Would Be Considered New or Modified Emissions 11/1/2016 Minor Mod Adding a 100kW diesel fired emergency generator and a soldering station as an insignificant activity 6. REVIEWER S NOTES: Baldor Electric Company (), located at 5711 R. S. Boreham Jr. St. in Fort Smith, AR, manufacturers electric motors for industrial use. With this minor modification, the facility is requesting to add a 100kW diesel fired emergency generator which will supply emergency power to a new Encapsulation machine. In addition, the facility is requesting to add a soldering station as an insignificant activity. The annual permitted emission rates will increase by 0.1 tpy PM/PM 10, 0.1 tpy SO 2, 0.1 tpy VOC, 0.1 tpy CO, and 0.2 tpy NOx.

2 Page 2 of 9 7. COMPLIANCE STATUS: The following summarizes the current compliance of the facility including active/pending enforcement actions and recent compliance activities and issues: 8. PSD APPLICABILITY: a) Did the facility undergo PSD review in this permit (i.e., BACT, Modeling, etc.)? N b) Is the facility categorized as a major source for PSD? N Single pollutant 100 tpy and on the list of 28 or single pollutant 250 tpy and not on list If yes, explain why this permit modification is not PSD. 9. SOURCE AND POLLUTANT SPECIFIC REGULATORY APPLICABILITY: Source All Diesel Generators (SN-33, SN-34, SN-35, SN-36, SN-40, SN-46 and SN-49) New Diesel Generators (SN-33, SN-34, SN-35, SN-40, SN-46 and SN-49) Welding (SN-C) and Pollutant HAPs HAPs Regulation (NSPS, NESHAP or PSD) 40 CFR 63 Subpart ZZZZ 40 CFR Part 60, Subpart IIII 40 CFR 63 Subpart XXXXXX Machining (SN-E) When complying with the HAP limits in this permit the facility will not be subject to Subpart MMMM. 10. EMISSION CHANGES AND FEE CALCULATION: See emission change and fee calculation spreadsheet in Appendix A. 11. AMBIENT AIR EVALUATIONS: a) Reserved. b) Non-Criteria Pollutants: Based on Department procedures for review of non-criteria pollutants, emissions of noncriteria pollutants are below thresholds of concern.

3 Page 3 of 9 c) H2S Modeling: A.C.A requires hydrogen sulfide emissions to meet specific ambient standards. Many sources are exempt from this regulation, refer to the Arkansas Code for details. Is the facility exempt from the H2S Standards If exempt, explain: No H2S emission N SN SN- 01a SN- 01b SN- 01c SN CALCULATIONS: Emission Factor Source (, testing, etc.) Balance Emission Factor (lb/ton, lb/hr, etc.) gal/motor 1.3 lb VOC/gal Units in lb/mmscf PM/PM 10 : 7.6 SO 2 : 0.6 VOC: 5.5 CO: 84.0 NOx: Control Control Efficiency Comments 167 s/cycle 6 motors/cycle 4.0 MMBtu/hr SN lb VOC/gal SN-05 SN-06 SN-07 capacity gal/motor 88.5 Motors/hr gal/motor 88.5 Motors/hr gal/motor 82.6 Motors/hr gal/motor 77.5 Motors/hr 7.0 lb VOC/gal 0.63 gal/hr SN lb VOC/gal SN-12 SN- 31a Units in lb/mmscf PM/PM 10 : 7.6 SO 2 : gal/motor 62.5 Motors/hr gal/motor 62.5 Motors/hr 1.8 MMBtu/hr (combined)

4 Page 4 of 9 SN SN- 31b Emission Factor Source (, testing, etc.) Balance Balance Emission Factor (lb/ton, lb/hr, etc.) VOC: 5.5 CO: 84.0 NOx: gal/motor 1.3 lb VOC/gal Units in lb/mmscf PM/PM 10 : 7.6 SO 2 : 0.6 VOC: 5.5 CO: 84.0 NOx: gal/motor 1.3 lb VOC/gal Control Control Efficiency SN-33 Units in lb/mmbtu SN-34 SN-35 SN-36 PM/PM 10 : 0.31 SO 2 : 0.29 Table VOC: 0.36 CO: 0.95 NOx: 4.41 SN-39 SN-40 Table lb VOC/gal Units in lb/mmbtu PM/PM 10 : 0.31 SO 2 : 0.29 VOC: 0.36 CO: 0.95 NOx: 4.41 SN lb VOC/gal SN-42 SN- 44a&b SN-45 SN-C MSDS gal/motor 1.3 lb/gal VOC 7.0 lb VOC/gal HAP content: 34% Manganese:5% PM:15.1 lb/10 3 electrode Comments 167 s/cycle 6 motors/cycle 1.8 MMBtu/hr (combined) 167 s/cycle 6 motors/cycle 685 HP, 500 hours/yr 237 HP, 500 hours/yr 685 HP, 500 hours/yr 85 HP, 500 hours/yr gal/rotor 40 rotors/hr 685 HP, 500 hours/yr 77.5 motors/hr gal/motor 77.5 motors/hr gal/motor 158 cycles/hr 6 motors/cycle 77.5 motors/hr gal/motor 25,000 lbs electrode/yr

5 Page 5 of 9 SN SN-E SN-46 SN-48 SN-49 Emission Factor Source (, testing, etc.) Table Table (for SO 2 only) & Exhaust Emission Data (EPA Certificate Data) Emission Factor (lb/ton, lb/hr, etc.) Estimate based upon nature of process Units in lb/mmbtu PM/PM 10 : 0.31 SO 2 : 0.29 VOC: 0.36 CO: 0.95 NOx: 4.41 Control Enclosed within building Control Efficiency 7.0 lb VOC/gal SO 2 : 2.05 E-03 lb/hp-hr PM/PM 10 : 0.17 g/kw-hr VOC: 0.15 g/kw-hr CO: 1.3 g/kw-hr NOx: 3.4 g/kw-hr Comments 80 HP, 500 hours/yr gal/motor 5.5 Motors/hr Hp, 100 kw, 500 hours/years 13. TESTING REQUIREMENTS: The permit requires testing of the following sources. SN Pollutants Test Method Test Interval Justification 14. MONITORING OR CEMS: The permittee must monitor the following parameters with CEMS or other monitoring equipment (temperature, pressure differential, etc.) SN Parameter or Pollutant to be Monitored Method (CEM, Pressure Gauge, etc.) Frequency Report (Y/N)

6 Page 6 of RECORDKEEPING REQUIREMENTS: The following are items (such as throughput, fuel usage, VOC content, etc.) that must be tracked and recorded. SN Recorded Item Permit Limit Frequency Report (Y/N) A VOC Content 7.0 lb/gal As needed N A VOC Emissions tpy Monthly Y A HAP Content As Per TLV Table As needed N B VOC Content 1.3 lb/gal As needed N B VOC Emissions 40.0 tpy Monthly Y Facility HAP Emissions Single HAP: 9.62 tpy Total HAPs: tpy Monthly Y C Welding Wire HAP content 34% HAPs 5% Manganese Continuous N C Welding Wire Used 35,000 lb/yr Monthly N C Manufacturer s Instructions Continuous N C Management Practices Minimum one from listed in SC#24 Continuous N C Corrective action if visible emissions detected See SC #25 As Needed Y C All visual determination of No visible fugitive opacity emissions See SC #27 N E Manufacturer s Instructions Operate according to instructions Continuous N SN-33, SN-34, SN-35, SN-40, & Fuel Type Used Non-road Diesel only As needed N SN-46 SN-33, SN-34, SN-35, SN-40, SN-46, & SN-36 SN-33, SN-34, SN-35, SN-40, & SN-46 Maintenance Record & Manufacturer approved instructions If engine has a diesel particulate filter: Action taken if backpressure monitor alarm Changes must be permitted by manufacturer and engine must be maintained according to instructions Continuous As needed N N

7 Page 7 of 9 SN Recorded Item Permit Limit Frequency SN-33, SN-34, SN-35, SN-40, SN-46, & SN-36 Hours of Operation and Description of Use 500 hr/ calendar yr total 100 hr/yr maintenance 50 hr/yr non-emergency Oil and Filter: 500 hours or annual Each use Report (Y/N) N SN-36 Maintenance Air Cleaner: 1000 hours or annual As needed N SN-33, SN-34, SN-35, SN-40, SN-46, and SN- 36 Opacity Observation data and corrective actions Hoses and belts: 500 Hours or annual SN-49 Hours of Operation 500 hrs SN-49 Opacity Observation data and corrective actions 20% Opacity Daily N 20% during the acceleration mode, 15% during the lugging mode, and 50% during the peaks in either the acceleration or lugging modes 12-month period Daily N N 16. OPACITY: SN Opacity Justification for limit Compliance Mechanism B 5% Dept. Guidance Use of Natural Gas C 5% Dept. Guidance Compliance with NESHAP XXXXXX C Any Visual Emissions NESHAP XXXXXX SC# 24 through #28 E 5% Dept. Guidance Work Practices

8 Page 8 of 9 SN Opacity Justification for limit SN-33, SN-34, SN- 35, SN-40, SN-46, & SN-36 SN-49 Compliance Mechanism 20% Dept. Guidance Daily Observation 20% during the acceleration mode, 15% during the lugging mode, and 50% during the peaks in either the acceleration or lugging modes Reg and 40 C.F.R (a)(2), (b) and (a) Inspection 17. DELETED CONDITIONS: Former SC Justification for removal 18. GROUP A INSIGNIFICANT ACTIVITIES: Emissions (tpy) Group A Source Name Category PM/ HAPs SO PM 2 VOC CO NO x 10 Single Total Wastewater Evaporator (NG, 0.22 MMBtu/hr) A Area Wastewater Evaporator (NG, 0.65 MMBtu/hr) A Burn-Off Oven (NG, 1.5 MMBtu/hr) A Three natural Gas Ovens (combined: 0.3 MMBtu/hr) A Curing Oven (NG, 0.5 MMBtu/hr) A Scrap Recovery Oven (NG, MMBtu/hr) A Epoxy Encapsulation Curing Oven (NG, 0.3 MMBtu/hr) A Building 7 Curing Oven (NG, 3.2 MMBtu/hr) A Electric Spray Washer with Natural Gas Burner (NG, 0.44 MMBtu/hr) A

9 Page 9 of 9 Source Name TTX Oven in 210 Area (NG, 2.5 MMBtu/hr) Group A Category PM/ PM 10 Emissions (tpy) SO 2 VOC CO NO x Single HAPs Total A A-1 TOTAL Endplate Washer A-13 Electric, water vapor only. No emissions Grinding Operations A Varnish Line Cooling Tunnel A-13 Cooling Tunnel emissions are accounted for in painting operations Forty-nine (49) Mist Collectors A Four (4) Laser Engravers A Soldering Station A Solvent Reclamation Unit (emissions included in SN-A) 19. VOIDED, SUPERSEDED, OR SUBSUMED PERMITS: A List all active permits voided/superseded/subsumed by the issuance of this permit. Permit # 0996-AOP-R23

10 APPENDIX A EMISSION CHANGES AND FEE CALCULATION

11 Fee Calculation for Major Source Facility Name: Baldor Electric Company Permit Number: 0996-AOP-R24 Revised $/ton factor Annual Chargeable Emissions (tpy) Permit Type Minor Mod Permit Fee $ 500 Minor Modification Fee $ 500 Minimum Modification Fee $ 1000 Renewal with Minor Modification $ 500 Check if Facility Holds an Active Minor Source or Minor Source General Permit If Hold Active Permit, Amt of Last Annual Air Permit Invoice $ 0 Total Permit Fee Chargeable Emissions (tpy) 0.5 Initial Title V Permit Fee Chargeable Emissions (tpy) HAPs not included in VOC or PM: Air Contaminants: Chlorine, Hydrazine, HCl, HF, Methyl Chloroform, Methylene Chloride, Phosphine, Tetrachloroethylene, Titanium Tetrachloride All air contaminants are chargeable unless they are included in other totals (e.g., H2SO4 in condensible PM, H2S in TRS, etc.) Pollutant (tpy) Check if Chargeable Emission Old Permit New Permit Change in Emissions Permit Fee Chargeable Emissions Annual Chargeable Emissions PM PM PM SO VOC CO NO X Acetone

12 Pollutant (tpy) Check if Chargeable Emission Old Permit New Permit Change in Emissions Permit Fee Chargeable Emissions Annual Chargeable Emissions Chrysene Propylene

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