NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION

Regional Director. Region 3

21 South Putt Corners Road. New Paltz. NY 12561-1620
P: (845) 256-3033 i F: (845} 255-3042

dec ny.gov

August 1, 2018

Steve Remillard

CPV Valley LLC

35 Braintree Hill Office Park, Suite 400
Braintree, MA 02184

RE: Air State Facility Permit, DEC lD #3-3356-00136/00001
Dear Mr. Remillard,

The New York State Department of Environmental Conservation (NYSDEC or
Department) conducted a review of Competitive Power Ventures Valley Energy Center?s
(CPV) January 2018 application to renew the above referenced Air State Facility (ASF)
permit and has determined that the ASF permit renewal cannot be issued because it
fails to satisfy as a matter of law all applicable requirements pursuant to Title 6 of the
New York Codes Rules and Regulations (6 subpart 201?6. See also, 6
section 

In particular, state regulations require that owners and operators of a new facility,
subject to permitting under 6 subpart 201-6, submit a complete application and
obtain a Title Clean Air Act (CAA) permit prior to operation of the facility. 6
Parts and Despite these regulatory changes, to date,
CPV has not submitted an application for a Title permit nor has a Title permit been
issued for the facility as required by the Department?s regulations. As a result, and
consistent with the Department?s regulations, the above referenced ASF permit renewal
application is denied. See 6 621 Your current ASF permit expired on July
31, 2018. As a result of this denial and the lack of a Title permit, CPV may not lawfully
operate the facility.

Prior to any issuance of a Title permit, a complete application must be
submitted, and the public must be provided notice and an opportunity to comment on
the draft permit. In addition, under the CAA, the US. Environmental Protection Agency
must be afforded a 45?day review period prior to the Department?s issuance of any Title
permit. These procedures, especially the opportunity for public input, are particularly
important prior to the operation of the facility.

Please take notice that operation without a valid Title permit is a violation of
state regulations and federal CAA requirements. Any person who is found to violate
Article 19 of the New York State Environmental Conservation Law (ECL), or any code,

NEWYORK Departmentof
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rule or regulation promulgated pursuant thereto, shall be liable for a civil penalty of up to
$18,000 for each violation, plus an additional penalty not to exceed $15,000 for each
day that the violation continues and that such person may be enjoined from continuing
such violation.

Pursuant to 6 Part 621 you have a right to an adjudicatory
hearing. You may request a hearing by writing to the chief permit administrator within
30 days of the date of this letter.

Sincerely,

ww

Kelly urturro
Regional Director

cc: Chris Allgeier, CPV
George Sweikert, Regional Air Pollution Control Engineer