## • 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matterof The State ofConnecticut and 

### PSEGPowerConnecticutLLC t' 

# , ) ) ) ) ) Trading Agreement and Order No. 8253

,,,,,,,\ 

### J Whereas. the Commissioner ofEnvironmental Protection ("Commissioner") and PSEG Power Connecticut

### lie ("PSEO") agree that it is in the public interest that they work cooperatively to improve the airquality within the State ofConnecticut and that the use of 

### discrete emission reduction credit ("DERC") trading to reduce nitrogen oxide CUNOx") 

### emissions will 

### achieve this result in atimely and cost-effective manner. A. At 

### the request and with the agreement ofPSEG, !.he CommissionerfInds the following: 1. PSEG is an electric generatingcompany with its principal place ofbusiness in Newark, New Jersey. PSEG owns one fossil fuel-fired electric generating station, BridgeportHarbor Station, at 1 Atlantic Streetin Bridgeport, Connecticut ("facility"). 2. At the facility, PSEG operates BridgeportHarbor Station Unit 2, Connecticut Registration Number015-0162, a 170 megawatt cyclone boiler ("boiler"). The boiler has the dual capacity to operate on fuel oil (No.6 orNo.2) and is subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNOx emissions. No.2 fuel oil is used primarily as a stan'-up fuel. A continuous emissions monitor ("CEM"), certified to 40 Code ofFederal Regulations ("CFR") Part 75, measures NOx emissions from the boiler. 3. When operating the boiler, PSEG exceeds the NOx allowable emission rate limit specified in Section 22a·174-22(e)(3) ofthe Regulations. 4. Pursuant to Section 223-174-22(j) ofthe Regulations, during the non-ozone season, PSEG intends to acquire approved DERCs until May I, 2005 for the boiler at the facility. B. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows PSEG to comply with Section 22a-174-22(d)(2) ofthe Regulations through use ofDERC trading.**~~-/I** C. With the agreement ofPSEG, the Commissioner, Jcting under Sections 22a-6, 22a171, 220-174, 220-176, and 22a-l77 ofthe Connecticut General Statutes, hereby orders PSEG as follows: (Prinled un Recyclo:Ll P:lPO:I) 79 Elm Slro:o:l •**H~fl(orl.!.** CT 06106.5127 hnp://dep.51:l1e fl 11$

_ • All Elf",,,,1 Oppu't"'""., Empl"

..·, tkb,/Ui,{, COlllltctkl/.f((Halol RtJow"t Mttllgltmtllf; 1980 -1000

# PPSEG Power Connecticut LLC Trading Agreement and Order No. 8253

1. Upon issuance ofthis Trading Agreement and Order, PSEG shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading. Until PSEG achieves pennanent

### complian.ce with the emission standard in Section 22a·174.22(e) of the Regulations or

### by Mar I, 2005, whichever occurs earlier: I a. PSEG shall useapproved DERCs as required under this Trading Agreement and Order; and b. PSEG shall have in its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order. 2. DERC use. Starting on October I, 2003, and until May I, 2005, before the first day ofeach non-Olone season, PSEG shall have in its possession sufficient approved. DERCs for the boilerbased on the following:



### a. During the non-ozone season: PSEG shall meet a non-ozone seasonal average emission limit of0.15 IbsIMMBtu. Prior to October I, 2003 and October I, 2004, PSEG shall estimate and acquire the amount ofnERCs or allowances required for such non-ozone season needed to comply with Section 22a-174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in MNfBtu from October 1 through April 30 x (estimated seasonal NOx emission rate

, in IbslMMBtu during OctOber I through April 30

- (0.95

x 0.15 IbslMMBtu»J "" 2000 poundslton. No later than May 31, 2004, and May I, 2005, PSEG shall calculate and permanently retire DERCs used in the preceding non-ozone season as foIIows: Actual DERCs (tons)::: [Actual fuel use in!v:lJvffiru from October 1 through April 30 x (actual seasonal average NOx emission rate in IbsIMMBtu during October I through April 30

- (0.95 x 0.15 IbsIMMBtu))] "" 2000 pounds/ton.

. 

### , 'J b. When the non-ozone season CEM-recorded NOx emission rate is used to calculate DERCs used by the boiler, PSEG shall include missing data calculated in accordance wilh missing data substitution procedures under 40 CFRPart 75. 

### 3. PSEG shall make and keep records for the boiler of: non-ozone season fuel use; nooozone season NOx emission rates, number ofoperating hours per non-ozone season, the 2

### PSEG Power Connecticut LLC Trading Agreement and OrderNo. 8253



### ''l : ....J'

.' 1. 

### Upon issuance ofthis Trading Agreement and Order, PSEG shall comply ith Section**22a~** 

### 174-22 ofthe Regulations through emission reduction trading. U PSEG achieves permanent compliaI)ce with the emission standard in Secti 22a-174-22(e) of the Regulations orby May I, 2005, whichever occurs earlier: I 

### a. PSEG shall us€approved DERCs as required under t s Trading Agreement and Order; and b. PSEG shall have in its possession sufficient provedDERCs to 

### meet applicable NOx emission limits as allowed underthis rading Agreement and Order. 2. DERC use. Staning on October I, 2003, and til May 1,2005, before the first day ofeach non-ozone season, PSEG shall hay. in its possession sufficient aI?proved' DERCs for the boilerbased on the follo mg:

a. During the non-ozone seas PSEG shall meet anoo-o one seasonal average 

## '5"o.....ro.- I 

### IbslMMBtu. Prior to tober I, 2003 and Octoi 

## f 

## I-<.-<>-S e. estimate and acquire e amount ofDERCs ora:**~'.s.** 

### c {'"1'

## 9i..,

## o.-./! such non-ozone s on needed to comply with 

## 0C>----9 

### e. 

# po r 0 

## v....r \ ofthe Regulati s as follows: 

# f''\e..S "'" : 0.. e-c

## r 

# 'if' r-- 

## t-l'-<'- : Estimated RCs (tons) 

### = [Estimated fuel use i; S'c> v...fU2. •

### Th~S**(vJ~J,.~** through April 30 x (estimaLcu :::.Ci1SUniiJ !'lUX 

### erruSSlOn rate in IbsfM:MBtu during October 1 through April 3@- (0.95 x 0.15 IbslMMBtu)J 7 

### 2000 pounds/ton.**~~ p"--,,,,-~d**  

### a laterthan May 31, 2004, and May 1,2005, PSEG shall calculate and permanently retire DERCs used in the preceding non-ozone season as follows: Actual DERCs (tons) 

### = [Actual fuel use in MMBtu from October I through April 30 x (actual seasonal average NOx emission rate in IbslMMBtu during October I through April**~-** 

### (0.95 x 0.15IbslMMBtu)J 2000 pounds/ton.**~o.-Jd ~.os**  

### b. When the non-ozone season CEM-recorded NOx emission rate is used to calculate DERCs used by the boiler, PSEG shall include missing data calculated in accordance with missing data substitution procedures under40 CFR Pan 75. 3. PSEG shall make and keep records for the boiler of: non-ozone season fuel use; nonozone season NOx emission rates, number ofoperating hours per non-ozone season, the 2PSEG Power ConnecticutLLC Trading Agreement and OrderNo. 8253



# o number ofinvalid data hours ofthe total operating hours pernon-ozone season; the number ofDERCs in its possession, purchased and used (by serial number 

### ifassigned) each non-ozone season in**acco~dance** with the appropriate emission rates and limits in this Trading Agreement and Order. PSEG shall maintain and submit such records in 

### accordance with Section**2~a-174.22** 

### ofthe Regulations. 4. Record Keepin2. PSEG shall retain records and supponing documentation as described in this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. PSEG shall provide the records specified above to the Commissionerwithin thiny (30) days ofreceipt ofa written request from the Commissioner. 5. Reoortim!. No later than July 30 ofevery year afterissuance ofthis Trading Agreement and Order, PSEG shall submit in writing to the Commissionerthe non-ozone season fuel consumption and amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs purchased from other facilities) for the boilerduring the previous October through April time period. These reports shall be on a form prescribed by the Commissioner. 6. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, PSEG may use NOx allowances, pursuant to Section 22a-174-220) ofthe Regulations to achieve all or a portion ofthe reductions required by Section 22a-174-22 ofthe Regulations. A:'1y allowance used forcompliance with Section 22a-174-22(e) ofthe Regulations shall be subject to all restrictions and/orrequirements applicable to DERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a174-22 ofthe Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from PSEG's NOx Budget Program compliance account upon such use. Allowances shall be considered used for compliance with Section 22a-174-22 ofthe Regulations when they are transferred from the facility's compliance account or overdraft account to a State ofConnecticut NOx allowance retirement account, account ill 

### crOOOO000300 in the NOx Allowance Tracking System. 7. DEBe DoubliM. At aminimum, DERCs required shall 

### be adjusted upwards by 100% if DERCs are notin PSEG's possession for use priorto the first day ofeach month or applicable season. However, based on the gravity ofthe noncompliance, the Commissionermay require additional upward adjustment. 8. Vintage Restriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCs/allowances shall only remain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch DERCs/allowances. DERCs/allowances generated/allocated more than five (5) calendar years ago are not valid for use for compliance with Section**22a-174~22** ofthe Regulalions. Notwithstanding the above the 3



# - .

# ,

..". PSEG Power Connecticut LLC 

### Trading Agreement and Order No. 8253 DERCs/aliowances generated/allocated prior to calendar year 2000 shall be valid for use until December 31. 2004. 9. Extension. No later th::m May**l~** 2005, with respect to the boiler, PSEG shall comply with the requirements ofSubdiv,ision 22a-174-22(d)(2) ofIhe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Coi'nmissionermay grant a written extension ofthis Trading Agreement and Order. 10. Future Compliance Report. On orbefore September I, 2004. PSEG shall submit a report indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boiler on and after.May 1, 2005. 11. Full compliance. PSEG shall not be considered in full compliance with this Tradirig Agreement and Order until all actions required by this Trading Agreement and Order have been 'completed as approved and to the Commissioner's satisfaction. 12. Approvals. PSEG shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Orderin a complete and approvable fonn. Ifthe Commissioner notifies PSEG that any document or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and PSEG shall correct the deficiencies and resubmit it within the time specified by the Commissioner or, ifno time is specified by the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action under this Trading Agreement and Order, the Commissionermay approve the document or other action as submitted or performed or with such conditibns ormodifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay. 13. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are those for which the Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioner or a repres.entative ofthe Commissioner; "Non-ozone season" means the period from October 1 through April 30 in any given calendar year. The date of"issuance" ofthis Trading Agreement and Orderis the date theTrading Agreement and Orderis deposited in the U.S. mail orpersonally delivered., whicheveris earlier. 14. Dates. The date ofsubmission to the Commissioner ofany document required by this Trading Agreement and Order shall be the date such document is received by the Commissioner. The date ofany notice by the Commissioner under Trading Agreement

.__ and Order, including but not limited to notice of approval or disapproval ofany document or other action, shall be the date such notice is deposited in the U.S. mail or is personally 4PSEG PowerConnecticut LLC Trading Agreement and OrderNo. 8253



# o delivered, whicheveris earlier. Except as otherwise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Order means calendar day. Any document or action which is required by this Trading Agreement and Orderto be submitted orperformed by a.date which falls on aSaturday, Sunday or aConnecticut or federal holiday shall be subJPined orperformed by the next day which is not a Saturday, Sunday or Connecticut orfederal holiday. 

## , IS. Certification ofdocuments. Any document, including but not limited to any notice, which is required to be submitted to the Corrunissionerunder this Trading Agreement and Order shall be signed by PSEG or, ifPSEG is not an individual, by an individual who is an authorized representative ofPSEG, in accordance with Section 22a-174-2a(a) ofthe Regulations ofConnecticUl State Agencies, and by the individual(s) responsible for actually preparing such document, and each such individual shall certify in writing as follows: "I have personally examined and am familiar with the information submitted in this document and all attachments thereto, and I certify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the information, that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. I understand that any false statement made in the submittedinformation is punishable as a criminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law." 16. Noncompliance. This Trading Agreement and Orderis afinal order ofthe Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject PSEG to an injunction and penalties. 17. False statements. Any false statement in any information submitted pursuant to this Trading Agreement and Orderis punishable as acriminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law. 18. Notice oftransfer: liabilitv ofPSEG. Until PSEG has 

### fully complied with this Trading Agreement and Order, PSEG shall notify the Commissionerin writing no laterthan 15 days after transferring all or any portion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Order or after obtaining a new mailing orlocation address. PSEG's obligations under this Trading Agreement and Order shall not be affected by the passage oftitle to any property to any otherperson or municipality.

5

### PSEG PowerConnecticut liC Trading Agreement and 

### OrderNo. 8253

### ;~ 

### i::J

, 

# "
.,....... 

### 19. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any other action to prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose**penalti~s** 

### for past, present, or future violations ofJaw. If

### at any time the Commissionerdete,nnines that the actions taken by PSEG pursuant to this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extentordegree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require PSEG to 

### undenake funher investigation orfunher action to preventor abate violations orpollution.

20. PSEG's obIi!2:ations underlaw. Nothing in this Trading Agreement and Order shall relieve 

### PSEG ofotherobligations under applicable federal, state and local law. 21. No assurance bv Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthatthe actions taken by PSEG pursuant to this Trading Agreement and Order will result in compliance orprevent or abate pollution.

22. Access to facility. Any representative ofthe Depanment ofEnvironmental Protection may enterthe facility withoutpriornotice forthe purposes ofmonitoring and enforcing the actions required or allowedby this Trading Agreement and Order. 23. No effect on ri!2:hts ofotherpersons. This Trading Agreement and Orderneithercreates nor affects any rights ofperson's ormunicipalities that are not parties to 

### this Trading Agreement and Order. 24. NQ Creation ofPropeny Rights. This Trading Agreement and Order does not create any propeny rights with respect to these DERCs. 25. Notice tQ Commissionerofchan!2:es. Within 15 days ofthe date PSEG becomes aware of achange in any information submined to 

### the Commissioner underthis Trading Agreement and Order, or that any such information was inaccurate ormisleading orthat any relevantinformation was omitted, PSEG shall submit the correct oromitted information to 

### the Commissioner. 26. Notification ofnoncompliance. 

### In the eventthatPSEG becomes aware that it did not or may not comply, ordid not ormay not comply on time, with any requirement of [his Trading Agreement and Orderor ofany document required hereunder, PSEG shall immediately notify by telephone the individual identified in the next paragraph and shall take all reasonable steps [0 

### ensure that any noncompliance ordelay is avoided or, if 6

/PSEG Power Connecticut LLC 

### Trading Agreement and Order No. 8253 unavoidable, is minimized to the greatest extent possible. Within five (5) dllYS ofthe initial notice, PSEG shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for lhe noncompliance ordelay and propose, for the review and written approval ofthe Commissioner, d:nes by which compliance will be achieved, and PSEG shall c\=Imply with any dates which 

### may be approved in writing 

### by the Commissioner. Notification by PSEG shall not excuse noncompliance ordelay, and the Commissioner's

### apP~oval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so stated 

### by the Commissionerin writing. 27. Submission ofdocuments. Any document required to be submitted to the Commissioner under this Trading Agreement and Order shall. unless otherwise specified in this Trading Agreement and Order orin writing by the Corrunissioner. 

### be directed to:

Ms. Wendy Jacobs Department ofEnvironmental Protection Bureau ofAirManagement Emissions and CreditTrading Section 79 Elm Street Hartford, Connecticut 06106-5127

7

/PSEG Power ConnecticutLLC Trading Agreement and OrderNo. 8253 PSEG consents to the issuance ofthis Trading Agreement and Order without further nolice. The undersigned certifies that he/she is fully authorized to enterinto this Trading Agreement and Order and to legally bind PSEG to the**term~** and conditions ofthe Trading Agreement and Order.

Signature: PSEG Powu Connecticut LLC

# ~(;,2Rl Name: Robert T. Parnell Title: Director of Asset Operations Date: _J_u_l"-y_l_7...;,'-2_0_03

_

/ / .**~r** J. Rocque, IT. ,rSSioner ,2003 Issued as a final order ofthe Commissionerof Environmental Protection



## !/

CITY OF BRIDGEPORT LAND RECORDS 

# D

MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED Certified DocumentNo.

8