Aprill5, Mr. Robert Neyer Operations Manager Conestoga Wood Specialties 621 Johnston Parkway Kenly, NC 27542

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1 PAT MCCRORY Governor DONALDR. VANDER VAART Secrt!lary Air Quality ENVIRONMENTAL QUALITY SHEILA C. HOLMAN Director Aprill5, 2016 Mr. Robert Neyer Operations Manager Conestoga Wood Specialties 621 Johnston Parkway Kenly, NC Subject: Air Conestoga Wood Specialties - Kenly Kenly, Johnston County, North Carolina Permit Class: Prohibitory Small Facility JD# Dear Mr. Neyer: In accordance with your completed application received February 16,2016, we are forwarding herewith to Conestoga Wood Specialties- Kenly, Kenly, Johnston 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 11 A TI ACHMENT" 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. ISOB-23 of the North Carolina General Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 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 ofyour air pennit through informal means pursuant to G.S. 150B-22. This request must be submitted in writing to the Director and must identify the specific 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. lsob-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 and may subject the Permittee to civil or criminal penalties as described in G.S A and B. State ofnonh Carolina I Environmental Quality I Air Quality Raleigh Regional Office I 3800 Barrett Drive I Raleigh, NC T I F

2 Robert Neyer April15, 2016 Page2 This permit shall be effective from Aprill5, 2016 until March 31,2024, 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 permit's new expiration date is March 31, Condition A.2 is updated by changing the emissions inventory date year to Updated the condition for NESHAP, Subpart JJ, National Emission Standards for Wood Furniture Manufacturing Operations. Added the condition Federal and State Rules Awlicable to Sources Exempted from Air Permitting Requirements. The Diesel-fired fire pump, ID No. IES-FPU1\1P, is subject to NESHAP Subpart ZZZZ, National Emission Standard for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines. Modified Exclusionary Rule Requirements, 2Q.0803 "Coating, Solvent Cleaning, and Graphic Arts." The reporting cycle has been changed from quarterly to annual. Added the Diesel-fired fire pump, ID No. IES-FPU1\1P, to the Insignificant/Exempt Activities list. Should you have any questions concerning this matter, please contact David Miller at Patrick Butler, P.E., Regional Supervisor Division of Air Quality, NC DEQ ddm Enclosures c: Raleigh Regional Office

3 NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION DEPARTMENT OF ENVIRONMENTAL QUALITY DIVISION OF AIR QUALITY AIR PERMIT NO R23 Issue Date: Aprill5, 2016 Expiration Date: March 31, 2024 Effective Date: Aprill5, 2016 Replaces Permit: R22 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 218 of Chapter 143, General Statutes ofnorth Carolina (NCGS) as amended, and other applicable Laws, Rules and Regulations, Conestoga Wood Specialties- Kenly 621 Johnston Parkway Kenly, Johnston County, North Carolina Permit Class: Prohibitory Small Facility ID# (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 I Control System Source ID Description System ID Description I IES-El!Wood dust collection system ICD-BH-1 lbagfilter (5,375 square feet of filter area) IES-E2 IW ood dust collection system CD-BH-2 lbagfllter (5,375 square feet of filter area) IES-001 (NESHAP) Jon-line spray booth (66.6 square feet of filter area) N/A I NIA IES-002 (NESHAP) Jon-line electrically heated sealer oven N/A I N/A IES-003 (NESHAP) Jon-line spray booth (66.6 square feet of filter area) N/A N/A IES-004 (NESHAP) Jon-line electrically heated topcoat oven NIA N/A IES-005 (NESHAP)!off-line spray booth (66.6 square feet of filter area) N/A N/A IES-006 {NESHAP) [Off-line spray booth (66.6 square feet of filter area) N/A N/A [ES-007 (NESHAP) [off-line spray booth N/A NIA [ES-008 (NESHAP) [Off-line oven NIA NIA [ES-009 (NESHAP) [Off-line spray booth I NIA NIA [ES-010 (NESHAP) [Off-line spray booth I NIA NIA JES-Adhesive (NESHAP) [manually applied contact adhesive operations I NIA I N/A

4 Page2 in accordance with the completed application A received February 16, 2016 including any plans, specifications, previous applications, and other supporting data, all of which are filed with the Department of Environmental Quality, Division of Air Quality (DAQ) and are incorporated as part of this permit. This pennit 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.0521, 2D.0535, , 2D.0611, 2D.0958, 2D.1111 (40 CFR 63, Subpart JJ}, 2D.1806, 2Q.0102 and 2Q 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 pezmit {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 pennit, the Permittee shall submit the air pollution emission inventory report (with Certification Sheet) in accordance with 15A NCAC , pursuant to N.C. General Statute The report shall be submitted to the Regional Supervisor, OAQ and shall document air pollutants emitted for the 2022 calendar year. 3. PARTICULATE CONTROL REQUIREMENT- As required by 15A NCAC "Particulates from Wood Products Finishing Plants/' the Permittee shall not discharge particulate matter caused by the working, sanding, or finishing of wood without providing, as a minimum for its collection, adequate duct work and properly designed collectors, or other such devices as approved by the Commission. 4. 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. 5. 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:

5 Page3 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: t. the name and location of the facility, ii. iii. iv. the nature and cause of the malfunction or breakdown, the time when the malfunction or breakdown is first observed, the expected duration, and v. an estimated rate of emissions. b. Notify the Director or his designee inunediately when the corrective measures have been accomplished. This reporting requirement does not allow the operation of the facility in excess of Envirorunental Management Commission Regulations. 6. FUGITNE DUST CONTROL REQUIREMENT- As required by 15A NCAC 2D Particulates from Fugitive Dust Emission Sources, 11 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 are received 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( ). 11 Fugitiv~ 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). 7. FABRIC FILTER REQUIREMENTS including cartridge filters, baghouses, and other dry filter particulate collection devices- As required by 15A NCAC 2D.0611, particulate matter emissions shall be controlled as described in the permitted equipment list. a. Inspection and Maintenance Requirements - To comply with the provisions of this permit and ensure that emissions do not exceed the regulatory limits, the Permittee shall perform, at a minimum, an annual (for each 12 month period following the initial inspection) internal inspection of each particulate collection device system. In addition, the Permittee shall perform periodic inspections and maintenance as reconunended by the equipment manufacturer. b. Recordkeeping Requirements - The results of all inspections and any variance from manufacturer's reconunendations or from those given in this permit (when applicable) shall be investigated with corrections made and dates of actions recorded in a logbook. Records of all maintenance activities shall be recorded in the logbook.

6 Page4 The logbook (in written or electronic format) shall be kept on-site and made available to DAQ personnel upon request A NCAC 2D.0958: WORK PRACTICES FOR SOURCES OF VOLATILE ORGANIC COMPOUNDS a. As required by 15A NCAC 2D.0958(c), for all sources at facilities that use volatile organic compounds (VOC) as solvents, carriers, material processing media, or industrial chemical reactants, or in similar uses that mix, blend, or manufacture volatile organic compounds, or emit volatile organic compounds as a product of chemical reactions; the Permittee shall adhere to the following required work practices: 1. The Permittee shall store all VOC-containing material not in use (including waste material) in containers covered with a tightly fitting lid that is free of cracks, holes, or other defects. 11. The Permittee shall clean up spills as soon as possible following proper safety procedures. iii. tv. The Permittee shall store wipe rags in closed containers. The Permittee shall not clean sponges, fabric, wood, paper products, and other absorbent materials. v. The Permittee shall drain solvents used to clean supply lines and other coating equipment into closable containers and close containers immediately after each use. vi. vii. The Permittee shall clean mixing, blending, and manufacturing vats and containers by adding cleaning solvent, closing the vat or container before agitating the cleaning solvent. The Permittee shall pour spent cleaning solvent into closable containers and close containers immediately after each use. b. As required by 15A NCAC 2D.0958(d), when cleaning parts with a solvent containing a volatile organic compound, the Permittee shall: 1. flush parts in the freeboard area, ii. take precautions to reduce the pooling of solvent on and in the parts, 111. tilt or rotate parts to drain solvent and allow a minimum of 15 seconds for drying or until all dripping has stopped, whichever is longer, iv. not fill cleaning ~achines above the fill line, v. not agitate solvent to the point of causing splashing.

7 Pennit No R23 Page A NCAC "MAXIMUM ACHIEVABLE CONTROL TECHNOLOGY" -The wood furniture manufacturing operations On-line spray booth (66.6 square feet of filter area) (ID No. ES-001 ), On-line electrically heated sealer oven (ID No. ES-002), On-line spray booth (66.6 square feet of filter area) (ID No. ES-003), On-line electrically heated topcoat oven (ID No. ES-004), Off-line spray booth (66.6 square feet of filter area) (ID No. ES- 005), Off-line spray booth (66.6 square feet of filter area) (ID No. ES-006}, Off-line spray booth (ID No. ES-007), Off-line oven (ID No. ES-008), Off-line spray booth (ID No. ES- 009), Off-line spray booth (ID No. ES-010) and manually applied contact adhesive operations (ID No. ES-Adhesive) shall comply with all requirements of 15A NCAC 2D.1111 "Maximum Achievable Control Technology" and 40 CFR Part 63, Subpart JJ 11 National Emission Standards for Wood Furniture Manufacturing Operations." [40 CFR ] Regulated Material Emission Limitation Thinners 10% by weight HAP stains, washcoats, sealers, topcoats, basecoats, I and enamels 1.0 lb VHAP/lb solids, as applied washcoat, basecoat, or enamel formulated coatings- 1.0 lb VHAP/lb solids onsite thinners- 3.0% by weight VHAP I strippable spray booth coatings 0.8 lb VOC per lb solids, as applied foam contact adhesives used in products which meet flammability requirements per California Technical Bulletin 116, 117, or 133, the Business and Institutional Furniture Manufacturers Association's (BIFMA's) X5.7, 1.8 lb VHAP per lb solids, as applied UFAC flammability testing, or any similar requirements from local, State, or Federal fire regulatory agencies I all other contact adhesives 1.0 lb VHAP/solids, as applied 1.0% by weight formaldehyde or 400 pounds coatings and contact adhesives formaldehyde emissions per rolling 12-month period a. Definitions and Nomenclature- For the purpose of this permit condition, the definitions and nomenclature contained in 40 CFR shall apply. b. Regulated Pollutants- Volatile Hazardous Air Pollutants (VHAPs) and Volatile Organic Compounds (VOCs) as defined in 40 CFR c. General Provisions - The Permittee shall comply with the requirements of 40 CFR Part 63, Subpart A "General Provisions," according to the applicability of Subpart A to such sources, as identified in Table 1 of 40 CFR Part 63, Subpart JJ. d. Work Practice Standards - The Permittee shall adhere to the work practice standards as specified by 40 CFR

8 PennitNo R23 Page6 e. Recordkeeping Requirements - The Permittee shall prepare, maintain, and follow a written work practice implementation plan in accordance with 40 CFR (e) that defines environmentally desirable work practices for each wood furniture manufacturing operation and addresses each of the work practice standards specified below: 1. Operator Training- in accordance with 40 CFR (b); n. Inspection and Maintenance Plan- in accordance with 40 CFR (c); iii. Cleaning and Washoff Solvent Accounting System - in accordance with 40 CFR (d); iv. Chemical Composition of Cleaning and WashoffSolvents- in accordance with 40 CFR (e); v. Spray Booth Cleaning- in accordance with 40 CFR (t); vi. vii. viii. ix. Storage Requirements- in accordance with 40 CFR (g); Application Equipment Requirements - in accordance with 40 CFR (h); Effective November 21, 2014 conventional air spray guns are allowed only when emissions are vented to a control device; Line Cleaning- in accordance with 40 CFR (i); Gun Cleaning- in accordance with 40 CFR (j); x. WashoffOperations- in accordance with 40 CFR (k); and xi. Formulation Assessment Plan- in accordance with 40 CFR (1). f. Reporting Requirements - The Permittee shall submit the compliance status report to the Regional Supervisor by January 30 or July 30 as apropriate in accordance with 40 CFR (t)(8) and 40 CFR (b). The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR (g)(8) and 40 CFR (c). The Pennittee shall follow the reporting requirements in 40 CFR (e) as required and 40 CFR (a) following the applicability criteria in 40 CFR (d). g. Finishing Operations- Per 40 CFR (a)(4), the Permittee has chosen to use both the compliant coatings and the facility averaging compliance options for the finishing operations Off-line spray booth (ID No. ES-01 0), On-line spray booth (66.6 square feet of filter area) (ID No. ES-001), Off-line spray booth (66.6 square feet of filter area) (ID No. ES~006), Off-line spray booth (ID No. ES-007), Off-line spray booth (ID No. ESw009), On-line spray booth (66.6 square feet of filter area) (ID No. ES-003) and Off-line spray booth (66.6 square feet of filter area) (ID No. ES-005). Compliance with each of these options is considered a separate ALTERNATIVE OPERATING SCENARIO (AOS) and the Permittee, contemporaneously with making a change from one AOS to another, shall record in a log the scenario under

9 Page? I I which it is operating. Records shall be retained for five years. [15A NCAC 2Q.0508(p)J AOSl: Compliant Coatings Option 1. Emission Limits The Permittee shall comply with all provisions of 40 CFR (a}(l) and (a)(2} as applicable to the finishing operations Offline spray booth (ID No. ES-010), On-line spray booth (66.6 square feet of filter area) (ID No. ES-001), Off-line spray booth (66.6 square feet of filter area) (ID No. ES-006}, Off-line spray booth (ID No. ES-007), Off-line spray booth (ID No. ES-009), On-line spray booth ( 66.6 square feet of filter area) (ID No. ES-003) and Off-line spray booth (66.6 square feet of filter area) (ID No. ES-005). All thinners, stains, washcoats, sealers, topcoats, basecoats, and enamels used at the facility shall meet the emission limitations as detailed in the following table: Regulated Material Emission Limitation Thinners I 10% by weight HAP I stains, washcoats, sealers, topcoats, basecoats, 1.0 lb VHAP/lb solids, as and enamels applied coatings lb VHAP/lb solids :washcoat, basecoat, or enamel fonnulated onsite thinners- 3.0% by weight VHAP u. Compliance Procedures and Monitoring Requirements - Emission sources Off-line spray booth (ID No. ES-01 0), On-line spray booth (66.6 square feet of filter area) (ID No. ES-001), Off-line spray booth (66.6 square feet of filter area) (ID No. ES-006}, Off-line spray booth (ID No. ES-007), Off-line spray booth (ID No. ES-009), On-line spray booth ( 66.6 square feet of filter area) (ID No. ES-003) and Off-line spray booth (66.6 square feet of filter area) (ID No. ES-005) are using both non-continuous and continuous coaters. The Permittee shall demonstrate that only compliant thinners are used and that all stains, washcoats, sealers, topcoats, basecoats, and enamels, are compliant, as applied, in accordance with 40 CFR (g)(2) for non-continuous coaters and 40 CFR (g)(3) for continuous coaters Compliance Procedures and Monitoring Requirements - Emission sources Off-line spray booth {ID No. ES-010), On-line spray booth (66.6 square feet of filter area) (ID No. ES-001 ), Off-line spray booth (66.6 square feet of filter area) (ID No. ES-006), Off-line spray booth (ID No. ES-007), Off-line spray booth (ID No. ES-009), On-line spray booth (66.6 square feet of filter area) (ID No. ES-003) and Off-line spray booth (66.6 square feet of filter area) (ID No. ES-005) are using non-continuous coaters. The Permittee shall demonstrate that only compliant thitmers are used and that all stains, washcoats, sealers, topcoats, basecoats, and enamels, are compliant, as applied, in accordance with 40 CFR (g)(2).

10 Page 8 tv. Performance Test Method- EPA Method 311 [Appendix A of 40 CFR Part 63] shall be used to determine the VHAP content of liquid coatings in accordance with 40 CFR (a). v. Recordkeeping Requirements- The Permittee shall keep records in accordance with 40 CFR (a) following the applicability criteria in 40 CFR (d), 40 CFR (g)(2), 40 CFR (b)(l) and (b)(2), 40 CFR {h), 40 CFR (i), and 40 CFR G). v1. Reporting Requirements - The Permittee shall submit the compliance stats report to the Regional Supervisor by January 30 or July 30 as apropriate in accordance with 40 CFR ( )(7) and 40 CFR (b). The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR (g)(7) and 40 CFR (c). The Permittee shall follow the reporting requirements in 40 CFR (a) following the applicability criteria in 40 CFR (d). AOS2: Facility Averaging Option i. Emission Limits - The Permittee shall comply with all provisions of 40 CFR (a)(l) and (a)(l) as applicable to the finishing operations Offline spray booth (ID No. ES-010), On-line spray booth {66.6 square feet of filter area) {ID No. ES-001), Off-line spray booth (66.6 square feet of filter area) (ID No. ES-006), Off-line spray booth (ID No. ES-007), Off-line spray booth (ID No. ES-009), On-line spray booth (66.6 square feet of filter.area) {ID No. ES-003) and Off-line spray booth (66.6 square feet of filter area) (ID No. ES-005). The weighted average VHAP content across all coatings, as applied, shall not exceed 1.0 kg VHAP per kg solids. 11. Compliance Procedures and Monitoring Requirements - The Permittee shall demonstrate that the monthly average VHAP content for all finishing materials used at the facility is no greater than 1. 0 kg VHAP per kg solids, as applied, in accordance with 40 CFR (g)(l). m. Performance Test Method- EPA Method 311 [Appendix A of 40 CFR Part 63] shall be used to determine the VHAP content of liquid coatings in accordance with 40 CFR {a). iv. Recordkeeping Requirements- Permittee shall keep records in accordance with 40 CFR (a) following the applicability criteria in 40 CFR (d), 40 CFR (g)(1), 40 CFR (b)(l) and (b)(2), 40 CFR (c), 40 CFR (h), 40 CFR (i), and 40 CFR ). v. Reporting Requirements- The Permittee shall submit the compliance status report to the Regional Supervisor by January 30 or July 30 as apropriate in accordance with 40 CFR ( )(7) and 40 CFR (b). The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR (g)(7) and 40 CFR (c). The Permittee shall follow

11 Page9 the reporting requirements in 40 CFR (a) following the applicability criteria in 40 CFR (d). h. Contact Adhesive Operations - 1. Emission Limits - The Permittee shall comply with all provisions of 40 CFR (a)(2) and (b) and (c) as applicable to the contact adhesive operations manually applied contact adhesive operations (ID No. ES Adhesive) as detailed in the following table: Emission Regulated Material Limitation lfoam contact adhesives used in products which meet l.8lb VHAP lflammability requirements per California Technical Bulletin tper lb solids, 116, 117, or 133, the Business and Institutional Furniture as applied!manufacturers Association's (BIFMA's) X5.7, UFAC ~flammability testing, or any similar requirements from local, State, or Federal fire regulatory agencies ian other contact adhesives 1.0 lb VHAP/lb solids, as applied ii. Compliance Procedures and Monitoring Requirements - When the manually applied contact adhesive operations (ID No. ES-Adhesive) is using foam and other contact adhesives. The Permittee shall demonstrate that only compliant thinners are used and that all stains, washcoats, sealers, topcoats, basecoats, and enamels, are compliant, as applied, in accordance with 40 CFR (g)(5). m. Performance Test Method- EPA Method 311 [Appendix A of 40 CFR Part 63] shall be used to determine the VHAP content of liquid coatings in accordance with 40 CFR (a). tv. Recordkeeping Reguirements- The Permittee shall keep records in accordance with 40 CFR (a) following the applicability criteria in 40 CFR (d), 40 CFR (b)(l) and (b){2), 40 CFR (h), 40 CFR (i), and 40 CFR ). v. Reporting Requirements - The Permittee shall submit the compliance status report to the Regional Supervisor by January 30 or July 30 as apropriate in accordance with 40 CFR (f)(5) and 40 CFR (b). The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR (g)(5) and 40 CFR (c). The Permittee shall follow the reporting requirements in 40 CFR (a) following the applicability criteria in 40 CFR (d).

12 Page 10 i. Formaldehyde Requirements- The permittee shall comply with one of the following two options by November 21,2014 and thereafter: i. Option # 1 ( 400 pounds formaldehyde limit per rolling 12 month period) - A. Emissions Limits- In accordance with 40 CFR (a) and (b), limit total formaldehyde (Ftotal) use in coatings and contact adhesives to no more than 400 pounds per rolling 12 month period. B. Compliance Procedures and Monitoring Requirements - In accordance with 40 CFR (h}, calculate total formaldehyde emissions from all finishing materials and contact adhesives used at the facility using Equation 5 and maintain a value offtotal no more than 400 pounds per rolling 12 month period. C. Recordkeeping Requirements- In accordance with 40 CFR (b), the Permittee shall keep records of the formaldehyde content, in pounds per gallon, as applied, of each finishing material and contact adhesive subject to the emission limits of 40 CFR (a) and (b). D. Reporting Requirements- The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR (c). n. Option#2 (CPDS ~ 1.0% by weight formaldehyde)- A. Emissions Limits- In accordance with 40 CFR (a) and (b), use coatings and contact adhesives only if they are low-formaldehyde coatings and adhesives, in any wood furniture manufacturing operations. Low-formaldehyde means, in the context of a coating or contact adhesive, a product concentration of less than or equal to 1.0 percent formaldehyde by weight, as described in a certified product data sheet for the material. B. Compliance Procedures and Monitoring Requirements - In accordance with 40 CFR (h), demonstrate compliance by use of coatings and contact adhesives only if they are /ow-formaldehyde coatings and contact adhesives maintaining a certified product data sheet for each coating and contact adhesive used and submitting a compliance certification with the semi-annual report. C. Recordkeeping Requirements- In accordance with 40 CFR (b), the Permittee shall keep a certified product data sheet for each coating and contact adhesive used. D. Reporting Requirements- The Permittee shall submit semi-annual reports to the Regional Supervisor in accordance with 40 CFR 40 CFR (c) and 40 CFR (h). The compliance certification shall state that low-formaldehyde coatings and contact adhesives, as

13 Page 11 applicable, have been used each day in the semiannual reporting period or should otherwise identify the periods of noncompliance and the reasons for noncompliance. An affected source is in violation of the standard whenever a coating or contact adhesive that is not lowformaldehyde, as demonstrated by records or by a sample of the coating or contact adhesive, is used. Use of a noncompliant coating or contact adhesive is a separate violation for each day the noncompliant coating or contact adhesive is used. The compliance certification shall be signed by a responsible official of the company that owns or operates the affected source. 10. CONTROL AND PROHIBITION OF ODOROUS EMISSIONS - As required by 15A NCAC "Control and Prohibition of Odorous Emissions" the Permittee shall not operate the facility without implementing management practices or installing and operating odor control equipment sufficient to prevent odorous emissions from the facility from causing or contributing to objectionable odors beyond the facility's boundary. 11. 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 pennit. The purpose of this permit condition is to inform you of your compliance obligations to these applicable rules as they are enforceable. 12. EXCLUSIONARY RULE REQUIREMENTS- Pursuant to 15A NCAC 2Q.0803 "Coating, Solvent Cleaning, and Graphic Arts, 11 potential emissions shall be determined using actual emissions without accounting for any air pollution control devices. a. As required by 15A NCAC 2Q.0803, the facility potential emissions (defined as actual emissions) shall be less than the following: tons per year of volatile organic compounds (VOC); n. 10 tons per year of each hazardous air pollutant (HAP); and iii. 25 tons per year of all HAPs combined. b. As required by 15A NCAC 2Q.0803, the Permittee shall comply with the following requirements: i. Annual Report Requirement - By March 1 of each year, regardless of the actual emissions, the Permittee shall submit to the Regional Supervisor, DAQ, a report summarizing emissions ofvoc and HAPs containing the following:

14 Page 12 A. the pounds ofvoc used during the previous calendar year; B. the greatest quantity in pounds of an individual HAP used during the previous calendar year; and C. the total pounds of all HAPs used during the previous calendar year. ii. Records Maintenance Requirement - The Permittee shall maintain purchase orders and invoices of materials containing VOC. These purchase orders and invoices shall be maintained for a period of at least three years and be made available to DAQ personnel upon request. m. Notification Requirement - The Pennittee shall report to the Regional Supervisor, DAQ, any exceedance of a requirement of rule 15A NCAC 2Q.0803 within one week of occurrence; and iv. Certification Requirement -The Permittee shall certify all submittals as to the truth, completeness, and accuracy of all information recorded and reported over the signature of the appropriate official as identified in rule 15A NCAC 2Q.03040) "Applications." Compliance with the recordkeeping and reporting requirements contained in this specific condition shall not relieve the Permittee from the requirement to have a Title V permit if the acrual emissions from the facility exceed 100 tons per year of VOC, or 10 tons per year of an individual HAP, or 25 tons per year of all HAPs combined.

15 Page 13 B. GENERAL CONDITIONS AND LIMITATIONS L In accordance with G.S (c)(l), 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 Supervisor North Carolina Division of Air Quality Raleigh Regional Office 3800 Barrett Drive Raleigh, NC 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- In accordance with 15A NCAC 2D.0605, 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 ISA 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 - In accordance with 15A NCAC 2Q.0301, 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. 5. REPORTING REQUIREMENT - In accordance with 15A NCAC 2Q.0309, any of the following that would result in previously unpennitted, 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 pennit 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 ofthe emission limitations specified herein.

16 Page In accordance with 15A NCAC 2Q.0309, 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. In accordance with G.S ( c)(l ), 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. In accordance with G.S (c)(l), this permit is nontransferable by the Permittee. Future owners and operators must obtain a new air permit from the DAQ. 8. In accordance with G.S (c)(l}, 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. In accordance with G.S (c)(l), 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. In accordance with 15A NCAC 2D.0605, 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 A, B, and 143-2_15.114C, including assessment of civil and/or criminal penalties. 12. Pursuant to North Carolina General Statute (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. 13. In accordance with G.S. 143~ (c)(l), this permit does not relieve the Permittee of the responsibility of complying 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- In accordance with lsa NCAC 2Q.0110, 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.

17 Pennit No R23 Page CLEAN AIR ACT SECTION 112(r) REQUIREMENTS- Pursuant to 15A NCAC 2D Risk Management Program," if the Pennittee is required to develop and register a risk management plan pursuant to Section 112(r) of the Federal Clean Air Act~ then the Pennittee is required to register this plan with the USEP A in accordance with 40 CFR Part 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 Pennittee 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 pennit, or the DAQ, or if the Permittee submits emissions testing to the DAQ in support of a pennit application or to demonstrate compliance, the Pennittee shall perfonn such testing in accordance with 15A NCAC and follow all DAQ procedures including protocol approval, regional notification, report submittal, and test results approval Pennit issued this the 15th of April~ NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION Patrick Butler, P.E. Regional Supervisor By Authority of the Environmental Management Commission Air Pennit No R23

18 ATTACHMENT to Pennit No R23, Aprill5, 2016 Insignificant I Exempt Activities I Exemption Source of Source of Title Source Regulation TAPs? V Pollutants? IES-MAU-1 -Vertical-type direct LPG-fired 2Q.0102 F l make-up air heater unit {3,024,000 Btu per Yes (c)(2)(e)(i) hour maximum heat input) IES-MAU-2- Vertical-type direct LPG-fired 2Q.0102 Fl make-up air heater unit (1,398,600 Btu per Yes (c)(2)(e)(i) hour maximum heat input) IES-SLO - Wood dust storage and loadout 2Q.0102 Yes operation (c)(2)(e)(i) ~ I IES-FPUMP- Diesel-fired fire pump (170 Fl 2Q.0102 horsepower, manufactured in 1969} Yes ( c )(2){B)( v )(III) (NESHAP, Subpart ZZZZ) 1. Because an activity is exempted from being required to have a pennit or pennit 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 Emission Rates Requiring a Permit." 3. Sample pennit conditions showing the regulatory requirements for exempt sources subject to NESHAP, NSPS, and NCAC rules may be found here: