STATEMENT OF BASIS For the issuance of Draft Air Permit # 2156-AOP-RO AFIN: 47-00493 1. PERMITTING AUTHORITY: Arkansas Department of Environmental Quality 5301 Northshore Drive North Little Rock, Arkansas 72118-5317 2. APPLICANT: Skyline Steel, LLC 5896 Hwy 18 East Blytheville, Arkansas 72315 3. PERMIT WRITER: Andrea Sandage 4. PROCESS DESCRIPTION AND NAICS CODE: NAICS Description: Fabricated Structural Metal Manufacturing NAICS Code: 332312 5. SUBMITTALS: 12/18/2009 3/24/2010 5/4/2010 6/15/2010 7/9/2010 7/14/2010 6. REVIEWER'S NOTES: Skyline Steel, LLC (Skyline) is located in Blytheville, Mississippi County, Arkansas. The facility purchases steel piling which is then processed into structural steel components. Preparation of the structural components may include blasting, welding, and surface coating operations. This facility is currently permitted under ADEQ Minor Source Air Permit No. 2156-A. With this application, Skyline requests to increase permitted surface coating and solvent usage limitations. A designated outdoor painting area (SN-05) and indoor robotic painting system (SN-06, SN-07, and SN-08) has been added. This increase resulted in potential emissions from the facility which exceeds the Title V applicability thresholds. This increase also results in the facility becoming an effected source under 40 CFR Part 63 Subpart MMMM - National Emission Standards for Hazardous Air Pollutants: Surface Coating of Miscellaneous Metal Parts and Products. Permitted emissions changes include the following: decreases of 3.0 tpy PM and 8.9 tpy PMIO and increases of 194.3 tpy VOC and 94.9 tpy combined HAPs. Permit #: 2156-AOP-RO AFIN: 47-00493 Page 2 of5 7. COMPLIANCE STATUS: The following summarizes the current compliance of the facility including active/pending enforcement actions and recent compliance activities and issues. Annual Inspection was conducted on March 18, 2009 with the following areas of concern. Enforcement is currently pending. This permit addresses the violations specified in the annual inspection. Records indicate that permittee is over usage limits of coasting substances listed in SC-06. Records indicate that permittee is over VOC limits of cleanup substances listed in SC-07. Records indicate that permittee is over HAP limits of cleanup substances listed in SC-08. 8. PSD APPLICABILITY: a. Did the facility undergo PSD review in this permit (i.e., BACT, Modeling, etc.)? b. Is the facility categorized as a major source for PSD? N N Single pollutant ~ 100 tpy and on the list 0/28 or single pollutant ~ 250 tpy and not on list? If yes, explain why this permit modification not PSD? 9. SOURCE AND POLLUTANT SPECIFIC REGULATORY APPLICABILITY: Source Pollutant Facility surface coating operation(s); as applicable HAPsNOCs 10. Regulation (NSPS, NESHAP or PSD) 40 CFR Part 63, Subpart MMMM EMISSION CHANGES AND FEE CALCULATION: See emission change and fee calculation spreadsheet in Appendix A. 11. MODELING: 2005 - 2009 MET data - modeled 5 year Criteria Pollutants - PMIO - Annual 1st high, 24-hr 6th high - SN-05 limited to 8 hrs/day (8:00-16:00) Emission NAAQS Modeled Averaging Pollutant Rate Standard Concentration Time (~g/m3) (~g/m3) (lb/hr) PMIO Background Total Highest Values %of Concentration NLR2008 NAAQS (~g/m3) (ug/m3) 50 Annual 18.67 20 38.67 77.4 150 24-Hour 104.58 37 141.58 94.4 0.87* * Includes SN-01, 02 @ 0.0167Ib/hr, SN-05 @ 0.8 lb/hr, & SN-06, 07, 08 @ O.Ollllb/hr Permit #: 2156-AOP-RO AFIN: 47-00493 Page 3 of5 Non-Criteria Pollutants: This permit contains a TLV formula for non-criteria pollutants. The equation is calculated based on the Presumptively Acceptable Emission Rate (PAER) as outlined in the Non-Criteria Pollutant Control Strategy. The PAER (in lb/hr) for a given HAP compound is defined as the TLV of that compound, expressed in mg/m3, multiplied by a factor of 0.11. This, along with the maximum daily coating material usage limitation of 400 gal/day is used to establish the following relationship. Allowable Content (lb/gal) = (TLV (mg/m3) * 0.11 * 24 (hr/day))/400 gal/day Modeling of specific non-criteria pollutants was not performed. 12. CALCULATIONS: Emission Factor Source (AP-42, testing, etc.) SN 01-02 Mass Balance Vendor Air Quality Data Sheet Limited to 400 gal/day total facility wide 05 06-08 Facility Wide 13. Mass Balance Emission Factor (lb/ton, lb/hr, etc.) Meta-Xylene 0.43 lbs/gal Ethyl Benzene 0.18 lbs/gal Para-Xylene 0.19 lbs/gal Ortho-Xylene 0.13 lbs/gal Cumene 0.05 lbs/gal MEKfor cleaning - 6.72 lb/gal total VOC Control Equipment Control Equipment Efficiency Particulate Filter 99% None Particulate Filter 99% None - TESTING REQUIREMENTS: The permit requires testing of the following sources. Comments Indoor Painting Output - 16.7 gal/hr Outdoor Painting 4.0 gal/hr Limited to 8 hrs/day and max 32 gal/day Indoor Robotic Painting Output 16.7 gal/hr Clean-up solvent and thinner limited to 100 gal/day NoHAPs-VOC only Permit #: 2156-AOP-RO AFIN: 47-00493 Page 4 of5 Test Method Pollutants SN Justification Test Interval No test requirements with this permit action. 14. MONITORING OR CEMS The permittee must monitor the following parameters with CEMS or other monitoring equipment (temperature, pressure differential, etc.) Parameter or Pollutant Method Frequency Report (YIN) to be Monitored (CEM, Pressure Gauge, etc.) SN There are no monitoring or CEM requirements with this permit action. 15. RECORDKEEPING REQUIREMENTS: The following are items (such as throughput, fuel usage, VOC content, etc.) that must be tracked and recorded. SN Facility Wide 05 16. 17. Recorded Item Permit Limit Frequency Report (YIN) 6.0lb/gal Daily N 4.0lb/gal Daily N 6.72lb/gal Daily N Surface Coatings 60,000 gal/yr N Thinners/Solvents 10,000 gal/yr Monthly - 12month rolling total Hours of Operation 8 hrs per day 8:00 a.m. - 5:00 p.m. Daily N Surface Coating VOC content Surface Coating HAP content Thinner/cleaners VOC content N OPACITY: SN Opacity 05 20% DELETED CONDITIONS: Justification for limit Regulation 19, §19.503 Compliance Mechanism Weekly Observations Permit #: 2156-AOP-RO AFIN: 47-00493 Page 5 of5 Former SC I Justification for removal Initial Permit 18. GROUP A INSIGNIFICANT ACTIVITIES Emissions (tpy) Group A Category PMlPMlO Wheelabrator wi Baghouse A-13 0.25 Welding A-7 0.73 A-I 3.26 E-04 2.58 E-05 2.36 E-04 3.61 E-03 A-I 3.26 E-04 2.58 E-05 2.36 E-04 3.61 E-03 Source Name Heater #1 (0.01 MMBtu/hr) Heater #2 (0.01 MMBtu/hr) 19. VOC S02 CO NO x HAPs Single Total 0.04 0.071 4.3 E-03 7.7 E-05 8.2 E-05 4.3 E-03 7.7 E-05 8.2 E-05 VOIDED, SUPERSEDED, OR SUBSUMED PERMITS: List all active permits voided/superseded/subsumed by the issuance of this permit. Permit # 2156-A 20. CONCURRENCE BY: The following supervisor concurs with the permitting decision. ~-----~ . APPENDIX A - EMISSION CHANGES AND FEE CALCULAnON Fee Calculation for Major Source Revised 03-01-10 Facility Name: Skyline Steel, LLC Permit Number: 2156-AOP-RO AFIN: 47-00493 $/ton factor Permit Type 22.07 Initial Permit Minor Modification Fee $ Minimum Modification Fee $ Renewal with Minor Modification $ Check if Facility Holds an Active Minor Source or Minor Source General Permit 220.3 4862.021 Annual Chargeable Emissions (tpy) Permit Fee $ 500 1000 500 o If Hold Active Permit, Amt of Last Annual Air Permit Invoice $ Total Permit Fee Chargeable Emissions (tpy) Initial Title V Permit Fee Chargeable Emissions (tpy) 191.3 220.3 HAPs not included in VOC or PM: Chlorine, Hydrazine, HCI, HF, Methyl Chloroform, Methylene Chloride, Phosphine, Tetrachloroethylene, Titanium Tetrachloride Air Contaminants: All air contaminants are chargeable unless they are included in other totals (e.g., H2S04 in condensible PM, H2S in TRS, etc.) Pollutant (tpy) PM Check if Chargeable Emission p- Old Permit Permit Fee Annual Change in Chargeable Chargeable Emissions Emissions Emissions New Permit -3 6.6 0 0 0 213.7 194.3 194.3 213.7 0 0 0 O 0 0 0 0 3.1 0 -3.1 9.4 0 -9.4 Cumene 0.1 0 -0.1 Toluene 7.7 0 -7.7 4.8 0 -4.8 0 120 120 PM 10 S02 VOC pp- CO NO x p- Ethyl Benzene Xylene Methyl Isobutyl Ketone Combined HAPs r r r 9.6 6.6 -3 9.6 0.7 -8.9 O 0 19.4