SfP DESCRIPTION - PSEG Power Connecticut LLC-Trading Aereement and Order

No. 8240 Modification I

I. SIP - DESCRIPTION OF DERC CREATION AND/OR USE

SIP SUMMARY TABLE

TradinQ: AQ:reement and Order No. 8240 Modification I

PSEG Power Connecticut LLC 1 Waterfront Street New haven cr 06512

Identifier IClient 8087 Town # 117 Premise # 551 Sequence # .f

Contact Ms. Sarah Kruse Tel: (203) 974-5055 Fax (203) 974-5005

Environmental Ocerations SoeciaIist

Pollutant and Regulatory Standard: NOx ISection 22a-174-22 ofthe Regulations of

Connecticut State Ae:encies.

Nonattainment Area Classification Serious

Annual DERCs needed Estimated < 5 tons

Annual DERCs 2enerated Estimated 10 non -{)zone. 50 ozone ffiDERCs)

Compliance Time Period Until Aori130, 2007.

Max. Emission Rate: full load emission rate (FLER) Use. (See Table 1 below):

Table 1

NOx Emission Rates and Allowable Limits

Unit Fuel Maximum Stack Test FLER Allowable Date of Next

PIR number Capacity (ppmvd) IbslMMBtu Rate Stack Stack

MMBtulhr IbsIMMBtu Test Test Due

Unit I #6 oil 4286 CEM CEM .25 NlA N/A

P-117-0031 #2 oil .20

nat gas .20

seasonalc .15

II. SPECIAL REQUIREMENTS

a. This Trading Agreement and Order Modification supersedes Trading Agreement and

Order No. 8240 issued on February 13, 2003.

b. Calculations of credits used or generated shall be as specified in Trading Agreement and

Order No. 8240.

c. Starting on October 1, 2003 and until April 30, 2007 during the non-ozone season PSEG

Power Connecticut LLC shall meet a non-ozone season emission limit of 0.15

IbsIMMBtu of heat input when operating on all fuels.

•
:~'··..'10 ..""

STATE OF CONNECTICUT

DEPARTME T OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT

AND

PSEG POWER CONNECTICUT LLC

TRADING AGREEMENT AND

ORDER NO. 8240

MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICAnON

In the matter of a Trading Agreement and Order between the Commissioner of Environmental

Protection ("Commissioner") and PSEG Power Connecticut LLC ("PSEG").

WI-lEREAS, the Commissioner and PSEG, having agreed to the tenns and conditions set

forth ~n Trading Agreement and Order No. 8240 issued on February 13,2003, do now, by mutual

agreement, modify said Trading Agreement and Order as follows:

1. Delete the date May I, 2005, and substitute therefor May 1, 2007, in paragraphs

A.5., A,7., A.8" C.l" C,l.b., C.l.d.iv" and C.6, footnote 3,

( .....

V 2. Delete the dates May I, 2005, and substitute therefor May 1, 2007, in paragraphs

C.z. and C.7 ..

3. Delete paragraph C.7... and substitute the following therefor.

At all times:

Before the first day of each month, PSEG shall calculate projected worst case

DERCs required for that calendar month as follows:

Estimated DERCs (tons):;;; {[estimated worst case NO" emission rate in

IbslMMBtu - «(0,95) x (NOx allowable limit or proportioned emission·rate

calculated pursuant to Section 22a-174-22(f)(2)(A) of the Regulations in

IbslMMBtu))] x (Estimated fuel use in MMBtu)) + 2000 poundslton..'

No later than the twentieth day of each month, PSEG shall calculate and

permanently retire DERCs used in the preceding calendar month, as follows:

Oi) When the boiler has a daily NOx emission rare (24-hour average)

(P,illied 011 Recyclcd P.lPCI)

19 Elm Stleel • H.lufold, CT 06106·5127

http://dcp''tatc.ct.u,

An E:qucl Oppor/unity Etnploytr

( . V

(i) For the boiler on each day, determine whether the 24·hour average NOx.

emission rate* is less than the baseline emission rate or greater than the

NOx allowable limit.
PSEG Power Connecticut LLC 2 Trading Agreement and Order

No. 8240 Modification No.1

o

4.

exceeding tJ:1e NOx allowable limit, calculate the amount of DERCs used,

as follows:

Actual DERCs (tons) = ([(CEM-recorded NOx daily average emission rate in

IbsIMMBtu*) - ((0.95) x (NOx allowable limit or proportioned emission rate

calculated pursuant to Section 22a-174-22(f)(2)(A) of the Regulations in

IbsIMMBtu»] x (actual fuel use in MMBtu)I .,. 2000 pounds/ton.

"'This rate shall be calculated pursuant to the methodology described in 40 CFR

Part 75.

During the non~ozone season:

During the period from October 1 through April 30, inclusive, each year until May

1,2007, the boiler shall, in addition to meeting lhe 24-hour emission limit in

Table 22-1 of Section 22a-174-22 of the Regulations, meet a non-ozone season

emission limit of 0.15 IblMMBtu. Prior to Ocrober I, 2003, October I, 2004.

October 1. 2005, and October I, 2006, PSEO shall estimate and acquire the

amount of non-ozone season DERCs or allowances needed to comply with

Section 22a-174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) = [Estimated fuel use in MMBtu from October 1 wough

April 30 x (lower of the seasonal average NOx emission rate or the proportioned

24-hour allowable emission limit in IblMMBtu during October 1 through April 30

- (0.95 x 0.15 IblMMBtu))J ... 2000 pounds/ton.

No later than May 31 of 2004, 2005, 2006, and 2007, in addition to the DERCs

retired pursuant to paragraph C.7.a. of this Trading Agreement and Order, PSEG

shall calculate and pennanently retire DERCs used in the preceding non-Olone

season as follows:

Actual DERCs (tons) = [Actual fuel use in MMBtu from October 1 through April

30 x (lower of the actual seasonal average NOx emission rate or the proportioned

24-hour allowable emission limit in IblMMBru during October 1 through April 30

- (0.95 x 0.15 IblMMBtu»] ... 2000 puunds/ton.

Delete paragraph C.8. and substitute the following therefor:

DERC ShoItfall. At a minimum, DERCs required shall be adjusted upwards by

100% ifDERCs are not in PSEO's possession for use prior [0 the fIrst day of each

month or applicable season. However, nothing in this Trading Agreement and

Order shall affect the Commissioner's authority to institute any proceeding or take

any other action to require additional upward adjustment, based on the gravity of

any alleged noncompliance or violation of law. PSEG shall permanently retire the
PSEG Power Connecticut LLC 3 Trading Agreement and Order

No. 8240 Modificarion No. I

quantity of emissions caused by the exceedance plus a 100% premium within

sixty (60) days of PSEG's discovery of the DERC shortfall. PSEG shall certify

and report any such DERC retirement to the Commissioner in accordance with

paragraph C.28 of this Trading Agreement and Order.

5. Delete paragraph C.12. and substitute the following therefor:

o 6.

Annual Emission Statement and Non-Ozone Season Emission Statement. No later

than March I for the previous calendar year and July 30 (for the October through

April time period only starting in 2003) of every year after issuance of this

Trading Agreement and Order, PSEG shall provide to the Commissioner, a record

of each sale or other transfer, and use of any and all of the DERCs approved

within and subsequent to issuance of this Trading Agreement and Order until all

such DERCs have been used or are no longer in PSEG's possession. PSEG shall

also include actual NOx emissions from the boiler and the amount of all DERCs

used (including serial numbers (if assigned) and approved DERCs generated

and/or purchased from other facilities), generated and/or approved for the

previous calendar year and October through April time period. These repons shall

be on a form prescribed by the Commissioner and shall be in monthly increments,

and by ozone and non-ozone seasons.

Include a new paragraph C.30. as follows:

Extension. No later than May I, 2007, with respect to the boiler, PSEG shall

comply with the requirements of Sections 22.-174-22(d)(I) and 22a-174-

22(d)(2)(A) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the Commissioner

will grant a wrinen extension of this Trading Agreement and Order.

(' \ , , '-../

7. Include a new paragraph C.31. as follows:

Future Compliance Report. On or before September 1,2006, PSEG shalI submit a

report in writing to the Commissioner, as directed in paragraph C.29. of this

Trading Agreement and Order, indicating how the facility shall comply with

section 22a-174-22 of the Regulations with respect to the boiler on and after May

1,2007.

All other tenns and conditions of Trading Agreement and Order no. 8240 issued by the

Commissioner acting under Chapter 4460, Sections 22a-6, 22a-171, 22'-174, 22a-176, and 22a-

,177 of the Connecticut General Statutes shall remain in effect.
PSEG Power Connecticut LLC 4 Trading Agreement and Order

No. 8240 Modification No.1

PSEG hereby consents to the entry of this modification to the Trading Agreement and Order

without further notice.

PSEGPOWerCo~LL~

SIgnature: U .

Type Name:

Type Title: Director-Asset Operations

Date:

Entered as a modification of an Order of the CoID.IItissioner of Environmental Protection

-,/

.~V

numbered 8240 this _~&",~~7i.__day of ~'¢""'~T 2J\04.,---_....

I

MAJLED CER IIFIED MAn.,

RETURN RECEIPT REQUESTED

Certified Document No.