MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION MAY 19, 2005 NEW SOURCE REVIEW PERMIT TO INSTALL NO

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MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION MAY 19, 2005 NEW SOURCE REVIEW PERMIT TO INSTALL NO. 87-05 ISSUED TO PLAST-O-FOAM, LLC LOCATED AT 24601 CAPITAL BLVD. CLINTON TWP., MICHIGAN 48036 IN THE COUNTY OF MACOMB STATE REGISTRATION NUMBER N7438 The Air Quality Division has approved this Permit to Install, pursuant to the delegation of authority from the Michigan Department of Environmental Quality. This permit is hereby issued in accordance with and subject to Part 5505(1) of Article II, Chapter I, Part 55 (Air Pollution Control) of P.A. 451 of 1994. Pursuant to Air Pollution Control Rule 336.1201(1), this permit constitutes the permittee s authority to install the identified emission unit(s) in accordance with all administrative rules of the Department and the attached conditions. Operation of the emission unit(s) identified in this Permit to Install is allowed pursuant to Rule 336.1201(6). DATE OF RECEIPT OF ALL INFORMATION REQUIRED BY RULE 203: 4/28/2005 DATE PERMIT TO INSTALL APPROVED: 5/19/2005 DATE PERMIT VOIDED: SIGNATURE: SIGNATURE: DATE PERMIT REVOKED: SIGNATURE:

Permit No. 87-05 Page 1 of 13 PERMIT TO INSTALL Table of Contents Section Page Alphabetical Listing of Common Abbreviations / Acronyms... 2 General Conditions... 3 Emission Unit Identification... 5 Flexible Group Identification... 6 Emission Unit Special Condtions... 7 Flexible Group Special Conditions... 8 Flexible Group Special Condtions... 10 Flexible Group Special Conditions... 12 Flexible Group Special Conditions... 13

Permit No. 87-05 Page 2 of 13 Common Abbreviations / Acronyms Common Acronyms Pollutant / Measurement Abbreviations AQD Air Quality Division Btu British Thermal Unit BACT Best Available Control Technology C Degrees Celsius CAA Clean Air Act CO Carbon Monoxide CEM Continuous Emission Monitoring dscf Dry standard cubic foot CFR Code of Federal Regulations dscm Dry standard cubic meter COM Continuous Opacity Monitoring F Degrees Fahrenheit EPA Environmental Protection Agency gr Grains EU Emission Unit Hg Mercury FG Flexible Group hr Hour FRP Fiberglass Reinforced Plastic H 2 S Hydrogen Sulfide GACS Gallon of Applied Coating Solids hp Horsepower GC General Condition lb Pound HAP Hazardous Air Pollutant m Meter HVLP High Volume Low Pressure * mg Milligram ID Identification mm Millimeter LAER Lowest Achievable Emission Rate MM Million MACT Maximum Achievable Control Technology MW Megawatts MAERS Michigan Air Emissions Reporting System NOx Oxides of Nitrogen MMA Methyl Methacrylate PM Particulate Matter MAP Malfunction Abatement Plan PM-10 Particulate Matter less than 10 microns diameter MDEQ Michigan Department of Environmental Quality pph Pound per hour MSDS Material Safety Data Sheet ppm Parts per million NESHAP National Emission Standard for Hazardous Air ppmv Parts per million by volume Pollutants NSPS New Source Performance Standards ppmw Parts per million by weight NSR New Source Review psia Pounds per square inch absolute PS Performance Specification psig Pounds per square inch gauge PSD Prevention of Significant Deterioration scf Standard cubic feet PTE Permanent Total Enclosure sec Seconds PTI Permit to Install SO 2 Sulfur Dioxide RACT Reasonable Available Control Technology THC Total Hydrocarbons ROP Renewable Operating Permit tpy Tons per year RTM Resin Transfer Molding µg Microgram SC Special Condition Number VOC Volatile Organic Compounds SCR Selective Catalytic Reduction yr Year SRN State Registration Number TAC Toxic Air Contaminant VE Visible Emissions * For High Volume Low Pressure (HVLP) applicators, the pressure measured at the HVLP gun air cap shall not exceed ten (10) pounds per square inch gauge (psig).

Permit No. 87-05 Page 3 of 13 GENERAL CONDITIONS 1. The process or process equipment covered by this permit shall not be reconstructed, relocated, or modified, unless a Permit to Install authorizing such action is issued by the Department, except to the extent such action is exempt from the Permit to Install requirements by any applicable rule. [R336.1201(1)] 2. If the installation, construction, reconstruction, relocation, or modification of the equipment for which this permit has been approved has not commenced within 18 months, or has been interrupted for 18 months, this permit shall become void unless otherwise authorized by the Department. Furthermore, the permittee or the designated authorized agent shall notify the Department via the Supervisor, Permit Section, Air Quality Division, Michigan Department of Environmental Quality, P.O. Box 30260, Lansing, Michigan 48909, if it is decided not to pursue the installation, construction, reconstruction, relocation, or modification of the equipment allowed by this Permit to Install. [R336.1201(4)] 3. If this Permit to Install is issued for a process or process equipment located at a stationary source that is not subject to the Renewable Operating Permit program requirements pursuant to R336.1210, operation of the process or process equipment is allowed by this permit if the equipment performs in accordance with the terms and conditions of this Permit to Install. [R336.1201(6)(b)] 4. The Department may, after notice and opportunity for a hearing, revoke this Permit to Install if evidence indicates the process or process equipment is not performing in accordance with the terms and conditions of this permit or is violating the Department s rules or the Clean Air Act. [R336.1201(8), Section 5510 of Act 451, PA 1994] 5. The terms and conditions of this Permit to Install shall apply to any person or legal entity that now or hereafter owns or operates the process or process equipment at the location authorized by this Permit to Install. If the new owner or operator submits a written request to the Department pursuant to R336.1219 and the Department approves the request, this permit will be amended to reflect the change of ownership or operational control. The request must include all of the information required by subrules (1)(a), (b), and (c) of R336.1219. The written request shall be sent to the District Supervisor, Air Quality Division, Michigan Department of Environmental Quality. [R336.1219] 6. Operation of this equipment shall not result in the emission of an air contaminant which causes injurious effects to human health or safety, animal life, plant life of significant economic value, or property, or which causes unreasonable interference with the comfortable enjoyment of life and property. [R336.1901] 7. The permittee shall provide notice of an abnormal condition, start-up, shutdown, or malfunction that results in emissions of a hazardous or toxic air pollutant which continue for more than one hour in excess of any applicable standard or limitation, or emissions of any air contaminant continuing for more than two hours in excess of an applicable standard or limitation, as required in Rule 912, to the Department. The notice shall be provided not later than two business days after start-up, shutdown, or discovery of the abnormal condition or malfunction. Written reports, if required, must be filed with the Department within 10 days after the start-up or shutdown occurred, within 10 days after the abnormal conditions or malfunction has been corrected, or within 30 days of discovery of the abnormal condition or malfunction, whichever is first. The written reports shall include all of the information required in Rule 912(5). [R336.1912] 8. Approval of this permit does not exempt the permittee from complying with any future applicable requirements which may be promulgated under Part 55 of 1994 PA 451, as amended or the Federal Clean Air Act.

Permit No. 87-05 Page 4 of 13 9. Approval of this permit does not obviate the necessity of obtaining such permits or approvals from other units of government as required by law. 10. Operation of this equipment may be subject to other requirements of Part 55 of 1994 PA 451, as amended and the rules promulgated thereunder. 11. Except as provided in subrules (2) and (3) or unless the special conditions of the Permit to Install include an alternate opacity limit established pursuant to subrule (4) of R336.1301, the permittee shall not cause or permit to be discharged into the outer air from a process or process equipment a visible emission of density greater than the most stringent of the following. The grading of visible emissions shall be determined in accordance with R336.1303. [R336.1301] a) A six-minute average of 20 percent opacity, except for one six-minute average per hour of not more than 27 percent opacity. b) A visible emission limit specified by an applicable federal new source performance standard. c) A visible emission limit specified as a condition of this permit to install. 12. Collected air contaminants shall be removed as necessary to maintain the equipment at the required operating efficiency. The collection and disposal of air contaminants shall be performed in a manner so as to minimize the introduction of contaminants to the outer air. Transport of collected air contaminants in Priority I and II areas requires the use of material handling methods specified in R336.1370(2). [R336.1370] 13. The Department may require the permittee to conduct acceptable performance tests, at the permittee s expense, in accordance with R336.2001 and R336.2003, under any of the conditions listed in R336.2001. [R336.2001]

Permit No. 87-05 Page 5 of 13 SPECIAL CONDITIONS Emission Unit Identification Emission Unit ID Emission Unit Description Stack Identification EUCOMPRESSION1 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION2 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION3 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION4 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION5 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION6 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUCOMPRESSION7 A compression/transfer molding press that uses either NA bulk molding compound (BMC) or phenolic molding compounds for the manufacturing of solid plastic parts. EUTHERMSETINJ1 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ2 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ3 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ4 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ5 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ6 A thermoset injection molding press that uses bulk NA

Permit No. 87-05 Page 6 of 13 Emission Unit ID Emission Unit Description Stack Identification EUTHERMSETINJ7 A thermoset injection molding press that uses bulk NA EUTHERMSETINJ8 A thermoset injection molding press that uses bulk NA EUCLEANUP Miscellaneous cleanup activities related to plastic parts manufacturing NA Changes to the equipment described in this table are subject to the requirements of R336.1201, except as allowed by R336.1278 to R336.1290. Flexible Group ID Flexible Group Identification Emission Units Included in Flexible Group FGCOMPMOLDS EUCOMPRESSION1, EUCOMPRESSION2, EUCOMPRESSION3, EUCOMPRESSION4, EUCOMPRESSION5, EUCOMPRESSION6, EUCOMPRESSION7 FGTHERMSETMOLDS EUTHERMSETINJ1, EUTHERMSETINJ2, EUTHERMSETINJ3, EUTHERMSETINJ4, EUTHERMSETINJ5, EUTHERMSETINJ6, EUTHERMSETINJ7, EUTHERMSETINJ8 FGMOLDING FGCOMPMOLDS, FGTHERMSETMOLDS NA Stack Identification SV-VENT1 SV-VENT2 SV-VENT3 SV-VENT1 SV-VENT2 SV-VENT3 FGFACILITY All process equipment at the stationary source including equipment covered by other permits, grand-fathered equipment and exempt equipment. NA

Permit No. 87-05 Page 7 of 13 Emission Limits The following conditions apply to: EUCLEANUP Pollutant Equipment Limit Time Period 1.1a VOC EUCLEANUP 4.0 tpy 12-month rolling time period as determined at the end of each calendar month. Testing/ Monitoring Method SC 1.3 Applicable Requirements R336.1225, R336.1702(a) Recordkeeping/Reporting/Notification 1.2 All required calculations shall be completed in a format acceptable to the AQD District Supervisor and made available by the 15th day of the calendar month, for the previous calendar month, unless otherwise specified in any recordkeeping, reporting or notification special condition. [R336.1225, R336.1702(a)] 1.3 The permittee shall keep the following information on a monthly basis for EUCLEANUP: a) The identity of each clean-up solvent used. b) The amount (in gallons or pounds) of each clean-up solvent used. c) Where applicable, gallons or pounds of each clean-up solvent reclaimed. d) VOC emission calculations determining the monthly emission rate in tons per calendar month, and the annual emission rate in tons per 12-month rolling time period as determined at the end of each calendar month. The records shall be kept in a format acceptable to the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R336.1225, R336.1702(a)]

Permit No. 87-05 Page 8 of 13 Emission Limits The following conditions apply to: FGCOMPMOLDS Pollutant Equipment Limit Time Period 2.1a VOC FGCOMPMOLDS 17.0 tpy 12-month rolling time period as determined at the end of each calendar month. 2.1b Ammonia FGCOMPMOLDS 2.3 tpy 12-month rolling time period as determined at the end of each calendar month. Testing/ Monitoring Method SC 2.5 SC 2.5 Applicable Requirements R336.1225, R336.1702(a) R336.1224, R336.1225 Process/Operational Limits 2.2 The permittee shall uncover, unwrap or expose only one charge per mold cycle per compression or injection molding machine used in FGCOMPMOLDS. For machines which have multiple molds, one charge means sufficient material to fill all molds for one cycle. [R336.1224, R336.1702(a)] 2.3 The permittee shall not use any cleaning solvents in FGCOMPMOLDS which contain hazardous air pollutants (HAP) except that styrene may be used as a cleaner in closed systems, and organic HAP containing cleaners may be used to clean cured resin from application equipment. Application equipment includes any equipment that directly contacts resin. [R336.1702(a)] Recordkeeping/Reporting/Notification 2.4 All required calculations shall be completed in a format acceptable to the AQD District Supervisor and made available by the 15th day of the calendar month, for the previous calendar month, unless otherwise specified in any recordkeeping, reporting or notification special condition. [R336.1224, R336.1225, R336.1702(a)] 2.5 The permittee shall keep the following information for each calendar month for FGCOMPMOLDS: a) The identity and amount, in pounds, of each type of material (BMC or phenolic MC) used. b) The appropriate emission factor for each material used, including citation of source of emission factor. c) VOC emission calculations determining the monthly emission rate in tons per calendar month, and the annual emission rate in tons per 12-month rolling time period as determined at the end of each calendar month. d) Ammonia emission calculations determining the monthly emission rate in tons per calendar month and the annual emission rate in tons per 12-month rolling time period as determined at the end of each calendar month. The records shall be kept in a format acceptable to the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R 336.1224, R336.1225, R336.1702(a)]

Permit No. 87-05 Page 9 of 13 Stack/Vent Restrictions Stack & Vent ID Maximum Diameter Minimum Height Above Applicable (inches) Ground Level (feet) Requirements 2.6a SV-VENT1 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) 2.6b SV-VENT2 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) 2.6c SV-VENT3 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) The exhaust gases shall be discharged unobstructed vertically upwards to the ambient air.

Permit No. 87-05 Page 10 of 13 Emission Limits The following conditions apply to: FGTHERMOSETMOLDS Pollutant Equipment Limit Time Period 3.1a VOC FGTHERMSETMOLDS 13.0 tpy 12-month rolling time period as determined at the end of each calendar month. Testing/ Monitoring Method SC 3.6 Applicable Requirements R336.1225, R336.1702(a) Material Limits 3.2 The VOC content of the bulk molding compound (BMC) used in FGTHERMSETMOLDS shall not exceed 20% by weight. [R336.1702(a)] Process/Operational Limits 3.3 The permittee shall expose only sufficient material needed to fill the hopper for one molding cycle for each injection molding machine. The hoppers must otherwise be closed when not adding materials to the molding machines. [R336.1224, R336.1702(a)] 3.4 The permittee shall not use any cleaning solvents in FGTHERMSETMOLDS which contain hazardous air pollutants (HAP) except that styrene may be used as a cleaner in closed systems, and organic HAP containing cleaners may be used to clean cured resin from application equipment. Application equipment includes any equipment that directly contacts resin. [R336.1702(a)] Recordkeeping/Reporting/Notification 3.5 All required calculations shall be completed in a format acceptable to the AQD District Supervisor and made available by the 15th day of the calendar month, for the previous calendar month, unless otherwise specified in any recordkeeping, reporting or notification special condition. [R336.1225, R336.1702(a)] 3.6 The permittee shall keep the following information for each calendar month for FGTHERMSETMOLDS: a) The identity and amount, in pounds, of each type of material (BMC) used. b) The styrene, vinyl toluene and total VOC content of each material (BMC) used. c) The appropriate emission factor for each material (BMC) used, including citation of source of emission factor. d) VOC emission calculations determining the monthly emission rate in tons per calendar month, and the annual emission rate in tons per 12-month rolling time period as determined at the end of each calendar month. The records shall be kept in a format acceptable to the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R336.1225, R336.1702(a)] Stack/Vent Restrictions

Permit No. 87-05 Page 11 of 13 Stack & Vent ID Maximum Diameter Minimum Height Above Applicable (inches) Ground Level (feet) Requirements 3.7a SV-VENT1 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) 3.7b SV-VENT2 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) 3.7c SV-VENT3 36 26 R336.1225, R336.1901, 40 CFR 52.21(c) and (d) The exhaust gases shall be discharged unobstructed vertically upwards to the ambient air.

Permit No. 87-05 Page 12 of 13 Emission Limits 4.1a Vinyl toluene (CAS No. 25013154) The following conditions apply to: FGMOLDING Pollutant Equipment Limit Time Period FGMOLDING 25.2 lb/day Testing/ Monitoring Method Applicable Requirements Calendar day SC 4.5 R336.1225 Process/Operational Limits 4.2 All waste materials used in FGMOLDING shall be captured and stored in closed containers and disposed of in an acceptable manner in compliance with all applicable state rules and federal regulations. [R336.1224, R336.1702(a)] Recordkeeping/Reporting/Notification 4.3 All required calculations shall be completed in a format acceptable to the AQD District Supervisor and made available by the 15th day of the calendar month, for the previous calendar month, unless otherwise specified in any recordkeeping, reporting or notification special condition. [R336.1224, R336.1225, R336.1702(a)] 4.4 The permittee shall maintain a current listing from the manufacturer of the chemical composition of each material, including the weight percent of each component. The data may consist of Material Safety Data Sheets, manufacturer's formulation data, or both as deemed acceptable by the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R336.1224, R336.1225, R336.1702(a)] 4.5 The permittee shall keep the following information for each calendar day for FGMOLDING: a) The identity and amount, in pounds, of each type of material used. b) The vinyl toluene content of each material used. c) The appropriate emission factor for each material used, including citation of source of emission factor. d) Vinyl toluene emission calculations determining the daily emission rate in pounds per calendar day. The records shall be kept in a format acceptable to the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R336.1225]

Permit No. 87-05 Page 13 of 13 The following conditions apply to: FGFACILITY Emission Limits 5.1a Each Individual HAP 5.1b Aggregate HAPs Pollutant Equipment Limit Time Period FGFACILITY Less than 9.0 tpy FGFACILITY Less than 22.5 tpy 12-month rolling time period as determined at the end of each calendar month. 12-month rolling time period as determined at the end of each calendar month. Testing/ Monitoring Method SC 5.4 SC 5.4 Applicable Requirements R336.1205(3) R336.1205(3) Testing 5.2 The HAP content of any material used, as received and as applied, shall be determined using manufacturer s formulation data. Upon request of the AQD District Supervisor, the manufacturer s HAP formulation data shall be verified using EPA Test Method 311. [R336.1205(3)] Recordkeeping / Reporting / Notification 5.3 All required calculations shall be completed in a format acceptable to the AQD District Supervisor and made available by the 15th day of the calendar month, for the previous calendar month, unless otherwise specified in any recordkeeping, reporting or notification special condition. [R336.1205(3)] 5.4 The permittee shall keep the following information on a monthly basis for FGFACILITY: a) Gallons or pounds of each HAP containing material used. b) Where applicable, gallons or pounds of each HAP containing material reclaimed. c) HAP content, in pounds per gallon or pounds per pound, of each HAP containing material used. d) Individual and aggregate HAP emission calculations determining the monthly emission rate of each in tons per calendar month. e) Individual and aggregate HAP emission calculations determining the annual emission rate of each in tons per 12-month rolling time period as determined at the end of each calendar month. The records shall be kept in a format acceptable to the AQD District Supervisor. All records shall be kept on file for a period of at least five years and made available to the Department upon request. [R336.1205(3)]