SIP DESCRIPTION Middletown Power LLC Trading Agreement and Order No. 8213A Modification 1 I. 

### SIP

- DESCRIPTION OFDERC CREATION AND/OR USE SIP SUMMARY TABLE Tradin2 A2reement and OrderNo. 8213A Middletown Power LLC 1866 River Road Middletown

# cr 06457 Identifier 

# IClient 7741 Town # 104 Premise # 24.1 Sequence #

### 1- Contact Ms. Cynthia Karlic Tel: (860) 343-6962 Fax (860) 343-6969 Regional Manager Pollutant and Regulatory Standard: NOx 

# I Section 22a·174-22 ofthe Regulations of Connecticut State**A~encies.** Nonattainment Area Classification Severe Annual DERCs needed Estimated 20 non-ozone Annual DERCs 2enerated Estimated 10 ozone (BDERCs) Compliance TimePeriod Until Aoril30, 2007. Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and Use. (SeeTable Ibelow):
Table 1 NOxEmission Rates and Allowable Limits Unit Fuel Maximum StackTest FLER Allowable Date of Next PIR nwnber Capacity (ppmvd) IbsIMMBtu Rate Stack Siack MMBtuIhr IbsIMMBtu Test Test Due Boiler 2 #6 oil 1295 CEM CEM 0.25 NA NA R-104-0098 #2 oil 

# .. .. .. 0.17 

# .. .. Nat. gas 

# .. " 

# .. 0.20 

# .. .. Non-ozonec 

# .. 

# .. .. 0.15 

# .. ..
II. SPECIAL REQUIREMENTS
a. This Trading Agreement and OrderModification supersedes Trading Agreement and OrderNo. 8213A issued on April 30, 2003. b. Calculations ofcredits used or generated shall be as specified in Trading Agreement and OrderNo. 8213A.
c. Starting on October 1, 2003 and until April 30, 2007 during the non-ozone season: For purposes ofgenerating OERCs from the boiler at the facility, Middletown Power LLC shall use 0.15 lbsIMMBtu ofheat input when operating on No.6 fuel oil, No.2 fuel oil and/or natural gas as the non·ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (tons) generated by the boiler shall be retired by the facility and permanently removed from all calculations on a non-ozone season basis to assure a benefit to the environment.

### STAIE OF CONNECTICUT 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION



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## !BY !TRADING AGREEMENT AND ORDERNO. 82l3A MODIFICATION NO. I MIDDLETOWN POWERliC TRADING AGREEMENT AND ORDER MODIFICAnON In 

### the matterofaTrading Agreement and Orderbetween the Commissioner ofEnvironmental Protection ("Commissioner") and Middletown Power U.C (liMP"). 

### WHEREAS, the Conunissionerand MP, having agreed to the tenns and conditions set forth in Trading Agreement and Order No. 8213A issued on April 30, 2003, do now, 

### by mutual 

### agreement, modify saidTrading Agreement and Orderas follows: 1. Delete the date September30,2004, and substitute thereforMay 1,2007, in paragraphs A.9., C.1., C.2., C.3.a., C3.a. foornote 3, C.3.b., C3.c., C3.d., C3.e., C3.f., and C.6. 2. Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a-174-220> ofthe Regulations, MP intends both to acquire 

### and generate approved DERCs until May I, 2007 forboiler2 at the facility. Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissionerhas provided written authority for use in compliance with Section 22a-174-22 ofthe Regulations. 3. Delete paragraph B.1. and substitute the following therefor: Comply with Section 22a-174-22(d)(l) ofthe Regulations through use ofBudget 

### Discrete Emission Reduction Credit ("BDERC") and DERC trading. '



### '. """') 4. Delete paragraph C.6.b. and substitute the following therefor: During the non-ozone season: 

### During the period from October I through April 30, inclusive, each yearuntil May 1,2007, the boiler shall, in addition to meeting the 24-hour emission limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet a non-alone season 

### emission limitof0.15 IblMMBtu. Priorto October I, 2003, October I, 2004, October 1, 2005, and October 1, 2006, MP shall estimate and acquire the amount ofnon-alone season DERCs or allowances needed to comply with Section 22a-**(Prinl~d** on**Recyel~d** Papcr) 79 Elm SUCCI • Hartford, CT 06106

- 5127 hnp:f!dcp,SIJIC,Cl.US All Equal Oppoflllflily £mploytr

### Middletown Power LLC 2 

### Trading Agreement and Order o. 8213A Modification No. I



### 5.

6.**174~22(e)(3)** ofthe Regulations as follows: 

### Estimated DERCs (tons) = 

### [Estimated fuel use in M1v1Btu from October 1through April 30 x (lower ofthe estimated seasonal average NOx emission rate or the proportioned 24-hourallowable emission limit in Ibnvllv1Btu during October 1 through April 30- (0.95 x 0.15IblMMBtu))J
... 2000 pounds/ton. No later than May 31 of2004, 2005, 2006, and 2007, in addition to the DERCs retired pursuant to paragraph C.6.a. ofthis Trading Agreement and Order, MP 

### shall calculate and permanently retire DERes used in the preceding non-ozone season as follows: Actual DERCs (tons) 

### = [Actual fuel use in MMBtu from October I through April 

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

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

### Delete paragraph C.lO. 

### and substitute the following therefor: Annual Emission Statement and Non-Ozone Season Emission Statement. No later' than March I for the previous calendar year and July 30 (for the Octoberthrough 

### April time period only starting in 2003) ofevery year after issuance ofthis Trading Agreement and Order, MP shall provide to the Commissioner, arecord of each sale or other transfer, and use ofany and all 

### ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Order until all such DERCs have been used orare no longer in MP's possession. MP shall also include actual NOx emissions from the boilerand the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/or purchased from otherfacilities), generated and/or approved for the previous calendar yearand October through April time period. These reports shall be on a 

### form prescribed by the Commissionerand shall be 

### in monthly increIl?ents, and by ozone and non-ozone seasons. ' Delete paragraph C.12. and substitute the following therefor: DERC Shortfall. At a ntinimum, DERCs required shall be adjusted upwards by 

### 100% ifDERCs are not in :NIP's possession for use prior to the first day ofeach month orapplicable season. However, nothing in this Trading Agreement and Ordershall affectthe Commissioner's authority to institute any proceeding or take any otheraction to require additional upward adjustment, based on the gravity of any alleged noncomplianceor violation oflaw. MP shall pennanently retire the quantityofemissions caused by the exceedance plus a 100% premium withinMiddletown Power LLC 

### 3 Trading Agreement and Order No. 8213A Modification No. I sixty (60) days ofMP's discovery ofthe DERC shortfall. MP shall certify and report any such DERC retirement to the Commissioner in accordance with para'graph C.31 ofthis Trading Agreement and Order. 7. Delete paragraph C.14. and substitute the following therefor: Extension. No later than May 1, 2007, with respect to the boiler, 

### 1v1P shall comply with the requirements ofSections 22a-174-22(d)(I) and 22a-174-22(d)(2)(A) of the Regulations. There is no assurance that after full program review ofthis and otherTrading Agreements and Orders that the Commissioner will grant a wrinen extension ofthis Trading Agreement and Order. 8. Delete paragraph C.15. and substitute the following therefor: Future Compliance ReDort. On orbefore September 1, 2006, MP shall submit a report in writing to the Commissioner, as directed in paragraph C.32. ofthis Trading Agreement and Order, indicating how the facility shall comply with section 22a-174-22 ofthe Regulations with respect to the boiler on and after May 1,2007. 

# (0 AlI"other tenns and conditions ofTrading Agreement and Order no. 8213A issued by the
. ..."... Commissioner acting underChapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176,'and 22a:- 177 ofthe Connecticut General Statutes snall remain in effect.



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### Middletown PowerLLC 4 

### Trading Agreement and Order 

### No, 8213A Modification No, 1 MP hereby consents to 

### the entry ofthis modification to the Trading Agreement and Order without further notice. 

### Middletown PowerLLC Signature: 

### Type Name: Type Title: Date: Entered as amodification ofan Orderofthe CorrunissionerofEnvironmental Protection



### que,'J{, ner ) 

# V numbered 8213A 

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MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED
Certified DocumentNo.

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