### SfP DESCRIPTION

- PSEG Power Connecticut LLC-Trading Aereement and Order No. 8240 

### Modification I I. SIP

- DESCRIPTION OF DERC CREATION AND/OR USE SIPSUMMARYTABLE TradinQ: AQ:reement and Order No. 8240 Modification I PSEG Power Connecticut LLC 1 Waterfront Street New haven

## cr 06512 Identifier 

# I Client 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 

# I Section 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) ComplianceTime Period Until Aori130, 2007. Max. Emission Rate: full load emission rate (FLER) Use. (SeeTable 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 OrderModification supersedes Trading Agreement and Order No. 8240 issued on February 13, 2003. b. Calculations ofcredits 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 ofheat 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 ofaTrading Agreement and Orderbetween the CommissionerofEnvironmental Protection ("Commissioner") and PSEG Power ConnecticutLLC ("PSEG"). 

### WI-lEREAS, the 

### Commissionerand PSEG, having agreed to the tenns and conditions set forth**~n** Trading Agreement and OrderNo. 8240 issued on February 13,2003, do now, 

### by mutual 

### agreement, modify saidTrading 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 ofeach month, PSEG shall calculate projected worstcase 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) ofthe Regulations in IbslMMBtu))] x (Estimated fuel use in MMBtu)) + 2000 poundslton
..' No later than the twentieth day ofeach month, PSEG shall calculate and 

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



### Oi) When the boilerhas adaily 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 ConnecticutLLC 2 

### Trading Agreement and Order No. 8240 

### Modification No.1



# o

4. 

### exceeding tJ:1e NOx allowable limit, calculate the amount ofDERCs used, as follows: Actual DERCs (tons) 

### = ([(CEM-recorded NOx daily average emission rate in IbsIMMBtu*)

- ((0.95) x (NOx allowable limit orproportioned emission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu»] x (actual fuel use in MMBtu)

## I .,. 2000 pounds/ton. 

### "'This rate shall be 

### calculated pursuant to 

### the methodology describedin 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 boilershall, in addition to meeting lhe 24-hour emission limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet anon-ozone season emission limit of0.15 IblMMBtu. Prior to Ocrober I, 2003, October I, 2004. October 1. 2005, and October I, 2006, PSEO shall estimate and acquire the 

### amount ofnon-ozone season DERCs or allowances needed to comply with Section 22a-174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in MMBtu from October 1 wough 

### April 30 x (lower ofthe seasonal average NOx emission rate orthe proportioned 24-hourallowable emission limitin IblMMBtu during October 1through April 30

- (0.95 x 0.15 IblMMBtu))J
... 2000 pounds/ton. No later than May 31 of2004, 2005, 2006, and 2007, in addition to the DERCs 

### retired pursuant to paragraph C.7.a. ofthis 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 (lowerofthe actual seasonal average NOx emission rate or the proportioned 24-hourallowable emission limitin 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 aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in PSEO's possession for use prior [0 the fIrst day ofeach 

### month or applicable season. However, nothing in this Trading Agreement and Ordershall 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 oflaw. PSEG shall permanently retire thePSEG Power Connecticut LLC 

### 3 

### Trading Agreement and Order No. 8240 Modificarion No. I 

### quantity ofemissions caused by the exceedance plus a 100% premium within sixty (60) days ofPSEG's discovery ofthe DERC shortfall. PSEG shall certify 

### and report any such DERC retirement to the Commissionerin accordance with paragraph C.28 ofthis 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) ofevery year after issuance ofthis 

### Trading Agreement and Order, PSEG shall provide to the Commissioner, arecord ofeach sale or othertransfer, and use ofany and all ofthe DERCs approved 

### within and subsequent to 

### issuance ofthisTrading Agreementand Orderuntil 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 ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated 

### and/orpurchased from otherfacilities), generated and/or approved for the previous calendar year and October through April time period. These repons shall 

### be on aform prescribed by the Commissionerand 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 ofSections 22.-174-22(d)(I) and 22a-174- 22(d)(2)(A) ofthe Regulations. There is no assurance that after full program 

### review ofthis andotherTrading Agreements and Orders that the Commissioner will grant awrinen extension ofthis Trading Agreement and Order.

(' \ , 

### , '-../ 7. Include a new paragraph C.31. as follows: Future Compliance Report. On orbefore September 1,2006, PSEG shalI submit a 

### reportin writing to the Commissioner, as directed in paragraph C.29. ofthis Trading Agreementand Order, indicating how the facility shall comply with section 22a-174-22 ofthe Regulations with respect to the boiler on and afterMay 1,2007. 

### All other tenns andconditions ofTrading Agreement and Order no. 8240 issuedby the Commissioner acting under Chapter4460, Sections 22a-6, 22a-171, 22'-174, 22a-176, and 22a- 

### ,177 ofthe Connecticut General Statutes shall remain in effect.

### PSEG PowerConnecticutLLC 4 

### Trading Agreement and Order No. 8240 Modification No.1 

### PSEG herebyconsents to the entry ofthis modification to 

### the Trading Agreement and Order without further notice.

## PSEGPOWerCo~LL~ SIgnature: 

# U . Type Name: Type Title: Director-Asset Operations 

### Date: Entered as amodification ofan Order ofthe CoID.IItissionerofEnvironmental Protection

/ 

### -,

## .~V numbered 8240 this

# _~&",~~7i. __ day 

### of

# ~'¢""'~T 2J\04.,---_.... 

# I

MAJLED CERIIFIED MAn.,

RETURN RECEIPT REQUESTED 

### Certified DocumentNo.