OFFICE OF ENVIRONMENTAL QUALITY CONTROL BUREAU OF AIR QUALITY OPERATING PERMIT

Eaton Hydraulics 795 West Alexander Ave. Greenwood, SC 29646

Pursuant to the provisions of the Pollution Control Act, Sections 48-1-50(5) and 48-1-110(a), 1976 Code of Laws of South Carolina and the South Carolina Air Quality Control Regulation 61-62.1, Section II(F), the Bureau of Air Quality authorizes the operation of the equipment specified herein in accordance with the plans, specifications and other information submitted in the construction permit application. This permit is subject to all conditions and operating limitations contained herein.

Installation/ Control ID Equipment Description Modification Date Device Void - 2.5 x 106 Btu/hr input fired steam boiler 01-Void 6/22/01 N/A (This source has been moved to exempt source Id No. BOIL) Void - Endothermic Generator: Endothermic gas is generated by cracking in a retort into 40% , 40% , and 20% 02-Void . The natural gas fired endothermic gas generator 6/22/01 N/A provides a base atmosphere in the heat treating process (This source has been moved to exempt source Id No. EGEN) 2.4 x 106 Btu/hr input natural gas fired Ispen Draw Furnace 0.6 x 106 Btu/hr input natural gas fired parts washer Ispen Washer 03 6/22/01 N/A (associated with PH 58 Furnace) 0.75 x 106 Btu/hr input natural gas fired Ispen Temper Furnace 1.8 x 106 Btu/hr input natural gas fired Pacific Scientific Furnace 04 6/22/01 N/A 1.8 x 106 Btu/hr input natural gas fired Pacific Scientific Furnace 05 Electric heat-treat Meshbelt Furnace* 6/22/01 N/A Void - 0.8 x 106 Btu/hr input natural gas fired Maxon 408 Ovenpak II parts curing oven (This source has been moved to exempt source Id No. COVEN) 06-Void 6/22/01 N/A Void - 0.8 x 106 Btu/hr input natural gas fired Maxon 408 Ovenpak II parts drying oven (This source has been moved to exempt source Id No. DOVEN) Void- 0.8 x 106 Btu/hr input natural gas fired Maxon 408 Ovenpak II Phosphating Tank #1 (This source has been moved to exempt source Id No. PHOS TK #1) 07-Void 6/22/01 N/A Void- 0.8 x 106 Btu/hr input natural gas fired Maxon 408 Ovenpak II Cleaning Tank #1 (This source has been moved to exempt source Id No. CLEAN TK #1)

PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 EXPIRES ON THE LAST DAY OF: July 31, 2018 SIC/NAICS CODES: 3594/333996

Eaton Hydraulics PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 PAGE 2 OF 6

0.8 x 106 Btu/hr input natural gas fried King HBR221 makeup air unit 08 paint booth with emissions being controlled by compact dry filters 6/22/01 D01 (Paint booth used for parts coating) Abrasive Blasting Process equipped with a Recycled Steel Shot and a CBF1 09 Stainless Steel Shot with emissions being controlled by 1000 cfm November 2001 cyclone and baghouse filter (96.3%) *The sole source of power for the heat-treat Meshbelt furnace is electric. Note that the electrically powered heat-treat Meshbelt furnace uses natural gas as an input to improve the atmosphere inside the furnace (natural gas is not used as fuel).

I. STANDARD CONDITIONS

A. The permit to operate may be renewed upon evidence of satisfactory operational experience during the prior operating period.

B. In accordance with South Carolina Department of Health and Environmental Control Regulation 61-62.1, Section II(H), a written request for an operating permit renewal shall be submitted to the Department no later than 90 days prior to the operating permit expiration date. The operating permit renewal request shall include all information as required by this regulation.

C. This permit expressly incorporates all the provisions of South Carolina Department of Health and Environmental Control Regulation 61-62.1, Section II(J).

D. In accordance with South Carolina Department of Health and Environmental Control Regulation 61-62.1, Section II(M) within thirty (30) days of the transfer of ownership/operation of a facility, the current permit holder and prospective new owner/operator shall submit to the Department a written request for transfer of the source operating permit.

II. SPECIAL CONDITIONS

A. EMISSION LIMITATIONS

Air pollutant emissions shall not exceed the following:

Pollutant/ Reference State ID Limit Regulation Standard Method Only 03 - 05 SC Regulation 61-62.5, Opacity 20% (each) 9 No 08 - 09 Standard 4, Section IX SC Regulation 61-62.5, 03 - 04 PM 0.88 lb/hr (each) 5 No Standard 4, Section VIII SC Regulation 61-62.5, 08 PM 5.47 lb/hr 5 No Standard 4, Section VIII SC Regulation 61-62.5, 09 PM 22.96 lbs/hr 5 No Standard 4, Section VIII Note: The only regulated pollutant emitted from Unit ID 05 is Carbon Monoxide (CO). Standard 4 opacity and particulate matter (PM) emissions are applicable however compliance with the PM emission limitation can be assumed since this source is powered by electric. Eaton Hydraulics PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 PAGE 3 OF 6

The emission limitations listed for each emission unit are based on operation at permitted capacity. Operation at less than permitted capacity must meet emission limits specified in the applicable regulations based on that operating rate. All test methods must be the most recent revisions that are published in the Code of Federal Regulations, in accordance with the requirements of SC Regulation 61-62.1, Section IV, Source Test.

B. CONTINUOUS MONITORING REQUIREMENTS

ID Pollutant Averaging Time None None None

C. SOURCE TEST SCHEDULE

ID Pollutant Frequency Method None None None None

D. ADDITIONAL CONDITIONS

Condition Conditions Number (Facility wide) The permittee shall pay fees in accordance with SC Regulation 61-30, SC Environmental 1. Protection Fees. (Facility wide) In accordance with SC Regulation 61-62.1 Section II(J), for all sources not required to have continuous emissions monitors, in the event of any malfunction of air pollution control equipment or system, process upset or other equipment failure which results in discharges of air contaminants lasting for one hour or more and which are greater than those discharges described for normal operation in the permit application shall be reported to the local Environmental Quality Control (EQC) Regional office within twenty-four (24) hours after the beginning of the occurrence. The permittee shall also submit a written report within thirty (30) days of the occurrence. This report shall be submitted to the Manager of 2. the Technical Management Section, Bureau of Air Quality (BAQ). The report shall contain as a minimum, the following: the identity of the emission unit and associated equipment where excess emissions occurred, the magnitude of excess emissions, the time and duration of excess emissions, the steps taken to remedy the malfunction and to prevent a recurrence, documentation that control equipment and processes were at all times maintained and operated, to the maximum extent practicable, in a manner that was consistent with good practice for minimizing emissions. Such a report shall in no way serve to excuse, otherwise justify, or in any manner affect any potential liability or enforcement action resulting from the occurrence. Eaton Hydraulics PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 PAGE 4 OF 6

Condition Conditions Number (Facility wide) Air dispersion modeling (or other method) has demonstrated that this facility’s operation will not interfere with the attainment and maintenance of any state or federal ambient air standard. Any changes in the parameters used in the air dispersion modeling may require a review by the facility to determine continuing compliance with these standards. These potential changes include any decrease in stack height, decrease in stack velocity, increase in stack diameter, decrease in stack exit temperature, increase in building height or building additions, increase in emission rates, decrease in distance between stack and property line, changes in vertical stack orientation, and installation of a rain cap that impedes vertical flow. Parameters that are not required in the determination will not invalidate the demonstration if they are modified. The emission rates used in the determination are listed in Attachment A of this permit. Higher emission rates may be administratively incorporated into Attachment A of this permit 3. provided a demonstration using these higher emission rates shows the attainment and maintenance of any state or federal ambient air quality standard or with any other applicable requirement. Variations from the input parameters in the demonstration shall not constitute a violation unless the maximum allowable ambient concentrations identified in the standard are exceeded.

The owner/operator shall maintain this facility at or below the emission rates as listed in Attachment A, not to exceed the pollutant limitations of this operating permit. Should the facility wish to increase the emission rates listed in Attachment A, not to exceed the pollutant limitations in the body of this permit, it may do so by the administrative process specified in this permit condition. This is a State Only enforceable requirement. (Facility wide) These conditions shall not supersede any State or Federal requirements such as National 4. Emission Standards for Hazardous Air Pollutants, unless these conditions would impose a more restrictive limit. (Facility wide) Unless elsewhere specified within this permit, all records required to demonstrate compliance with the limits established under this permit shall be maintained on site for a period of at least 5. five (5) years from the date generated and shall be made available to a Department representative upon request. (IDs 03-05, 08-09) In accordance with SC Regulation 61-62.5, Standard No. 4 - Emissions from Process Industries, Section IX - Visible Emissions (Where Not Specified Elsewhere), where 6. construction or modification began after December 31, 1985, emissions (including fugitive emissions) shall not exhibit an opacity greater than 20% (each). (IDs 03-04, 08) These sources are permitted to burn only natural gas as fuel. The use of any other 7. substances as fuel is prohibited without prior written approval from the Bureau of Air Quality. (IDs 03-04) In accordance with SC Regulation 61-62.5, Standard No. 4 - Emissions from Process Industries, Section VIII - Other Manufacturing, particulate matter emissions shall be limited to the rate specified by use of the following equations: for process weight rates less than or equal to 30 tons per hour 8. (E = 4.10P0.67) and for process weight rates greater than 30 tons per hour (E = 55.0P0.11 - 40) where E = the allowable emission rate in pounds per hour and P = process weight rate in tons per hour. As such, this unit’s allowable particulate matter emission limit is 0.88 lb/hr, each, at its nominal production rating of 0.1 tons per hr, each. (ID 08) In accordance with SC Regulation 61-62.5, Standard No. 4 - Emissions from Process Industries, Section VIII - Other Manufacturing, particulate matter emissions shall be limited to the rate specified by use of the following equations: for process weight rates less than or equal to 30 tons per hour (E = 9. 4.10P0.67) and for process weight rates greater than 30 tons per hour (E = 55.0P0.11 - 40) where E = the allowable emission rate in pounds per hour and P = process weight rate in tons per hour. As such, this unit’s allowable particulate matter emission limit is 5.47 lb/hr at its nominal production rating of 1.54 tons per hr. (ID 09) In accordance with SC Regulation 61-62.5, Standard No. 4 - Emissions from Process Industries, Section VIII - Other Manufacturing, particulate matter emissions shall be limited to the rate specified by use of the following equations: for process weight rates less than or equal to 30 tons per hour (E = 10. 4.10P0.67) and for process weight rates greater than 30 tons per hour (E = 55.0P0.11 - 40) where E = the allowable emission rate in pounds per hour and P = process weight rate in tons per hour. As such, this unit’s allowable particulate matter emission limit is 22.96 lbs/hr at its nominal production rating of 13.08 tons per hr. Eaton Hydraulics PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 PAGE 5 OF 6

Condition Conditions Number (ID 08) Dry filters shall be operational and in place at all times when equipment or processes controlled by filters are operating, except during periods of malfunction or mechanical failure. A schedule shall be 11. implemented for the daily inspection and regular cleaning or replacement of the dry filters. Records of these events shall be entered in a permanent media and maintained on site for a period of at least five (5) years from the date of record and made available to Department representatives upon request. (ID 09) The owner/operator shall maintain on file all measurements including continuous monitoring system or monitoring device performance measurements; all continuous monitoring system 12 performance evaluations; all continuous monitoring system or monitoring device calibration checks; adjustments and maintenance performed on these systems or devices; and all other information required in a permanent form suitable for inspection by Department personnel. (ID 09) All gauges shall be readily accessible and easily read by operating personnel and Department personnel (i.e. on ground level or easily accessible roof level). Monitoring parameter readings (i.e., pressure drop readings, etc.) and inspection checks shall be maintained in logs (written or electronic), along with any corrective action taken when deviations occur. Operational ranges shall be determined and available for triggering corrective actions and assuring proper operation. 13. Each incidence of operation outside the operational ranges, including date and time, cause, and corrective action taken, shall be recorded and kept on site. Exceedance of operational range shall not be considered a violation of an emission limit of this permit, unless the exceedance is also accompanied by other information demonstrating that a violation of an emission limit has taken place. (ID 09) The owner/operator shall continue to operate and maintain pressure drop gauges on each module of the baghouse. Pressure drop readings shall be recorded daily during source operation. Operation and maintenance checks will be made on at least a monthly basis for the baghouse cleaning 14. systems and dust collection hoppers and conveying systems for proper operation. The baghouse shall be in place and operational whenever processes controlled by the baghouse are running, except during periods of baghouse malfunction or mechanical failure. (ID 09) The cyclone shall be in place and operational whenever processes controlled by the cyclone are running, except during periods of cyclone malfunction or mechanical failure. Operation and maintenance checks will be made on the cyclone, ductwork and dust collection hoppers and conveying systems for proper operation. The following operation and maintenance checks will be made on at least a monthly basis for all cyclones:

15. a) The cyclone and ductwork system will be checked for damaged or worn sheet metal or other interferences with proper operation. b) Check dust collection hoppers and conveying systems for proper operation.

The results from the operation and maintenance checks shall be maintained in logs (written or electronic), along with any corrective action taken.

E. Exempt Sources

Equip ID Exempt Source Description (Exemption Date) Basis Electric Almco parts washer W 1 (May 30, 2001) SC Regulation 61-62.1, Section W2 Electric Benson parts washer II(B)(2)(h) (May 30, 2001) CT 2 Two (2) Electric Maxon 408 Ovenpak II Parts Washer SC Regulation 61-62.1, Section PT 2 (May 30, 2001) II(B)(2)(h) Mod-U-Blast Shot Blasting Operation with Filter SC Regulation 61-62.1, Section N/A Cartridge Dust Collection System (June 24, 2005) II(B)(2)(h) SC Regulation 61-62.1, Section TDU Thermal Deburr Unit II(B)(2)(h) Eaton Hydraulics PERMIT NUMBER: 1240-0091 DATE OF ISSUE: August 19, 2008 PAGE 6 OF 6

Equip ID Exempt Source Description (Exemption Date) Basis 2.5 x 106 Btu/hr input natural gas fired steam boiler SC Regulation 61-62.1, Section BOIL (Moved from Unit ID 01) II(B)(2)(h) Endothermic Generator SC Regulation 61-62.1, Section EGEN (Moved from Unit ID 02) II(B)(2)(h) 0.8 x 106 Btu/hr input natural gas fired Maxon 408 SC Regulation 61-62.1, Section COVEN Ovenpak II parts curing oven II(B)(2)(h) (Moved from Unit ID 06) 0.8 x 106 Btu/hr input natural gas fired Maxon 408 SC Regulation 61-62.1, Section DOVEN Ovenpak II parts drying oven II(B)(2)(h) (Moved from Unit ID 06) 0.8 x 106 Btu/hr input natural gas fired Maxon 408 PHOS TK SC Regulation 61-62.1, Section Ovenpak II Phosphating Tank #1 #1 II(B)(2)(h) (Moved from Unit ID 07) 0.8 x 106 Btu/hr input natural gas fired Maxon 408 CLEAN SC Regulation 61-62.1, Section Ovenpak II Cleaning Tank #1 TK #1 II(B)(2)(h) (Moved from Unit ID 07)

No deviation from the plans and specifications submitted with your application or the conditions specified herein is permitted, unless authorized in writing by the Bureau of Air Quality. The owner/operator is responsible for satisfactory compliance with all Air Pollution Regulations and Standards.

______Elizabeth J. Basil, Director Engineering Services Division Bureau of Air Quality

ATTACHMENT A

Modeled Emission Rates Eaton Hydraulics 1240-0091 PAGE 1 OF 1

AMBIENT AIR QUALITY STANDARDS - STANDARD 2 Modeled Emission Rates (lbs/hr) STACK TSP PM10 SO2 NOX CO #1 – B1 – Boiler 0.019 0.019 0.0020 0.350 0.088 #2 – EG1 – Endothermic 0.004 0.004 0.0003 0.050 0.011 Generator #3 – PH58 – Ipsen Draw 0.018 0.018 0.0010 0.336 3.684 Furnace #4 – PH58 – Ipsen Washer 0.005 0.005 0.0004 0.084 0.021 #5 – PH58 – Ipsen Temper 0.006 0.006 0.0005 0.105 0.026 Furnace #6 – PH51 – Pacific Science 0.014 0.014 0.0010 0.252 2.763 Furnace #7 – PH52 – Pacific Science 0.014 0.014 0.0010 0.252 2.763 Furnace #8 – C01 – Paint Curing Oven 0.006 0.006 0.0005 0.080 0.017 #8 – D01 – Parts Drying Oven 0.006 0.006 0.0005 0.080 0.017 #8 – PT1 – Phoshating Tank #1 0.006 0.006 0.0005 0.080 0.017 #8 – CT1 – Cleaning Tank #1 0.006 0.006 0.0005 0.080 0.017 #9 – MAU – Paint Booth 0.006 0.006 0.0005 0.080 0.017 #10 – M1 – Meshbuilt ------2.00 #12 – D01 – Paint Booth 0.276 0.276 ------FACILITY TOTAL 0.386 0.386 0.00870 1.829 11.441