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DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State of Connecticut )

and I ) TRADING AGREEMENT AND ORDER No. 8134

United Technologies Corpqr~tlOn

Whereas, the Commissioner of Environmental Protection ("Commissioner") and The United

Technologies Corporation, through its Pratt and Whitney Division ("P&W") agree that it is in

the public interest that th.ey work cooperatively to improve the air quality within the State of

Cormecticut and that the use of emission reduction credit ("ERe") trading to reduce nitrogen

oxide (UNOx") emissions will achieve this result in a timely and cost-effective manner:

A At the request and with the agreement ofP&W, the Commissioner finds the following:

1. P&W is a company which owns and operates jet engine manufacturing facilities

at 400 Main Street, East Hartford, Connecticut ("facility 1") and Aircraft Road,

Middletown, Connecticut ("facility 2") and ajet engine research facility at Pent

Road, East Hartford, Connecticut ("facility 3").

2. At facility 1, P&W owns and operates three (3) dual-fuel burning boilers, no. 6,

8, and 9 ("facility 1 boilers"), capable of burning natural gas or No.6 fuel oil. At

facility 2, P&W owns and operates four (4) No.6 fuel oil burning boilers,

number 1, 2, 3 and 4 ("facility 2 boilers") and jet fuel burning production GO-8

g~ turbine engines ("facility 2 engines"). At facility 3, P&W ovms and operates

production GG-8 gas turbine engines, capable cfbuming either natural gas or

jet fuel ("facility 3 engines"). At facility 2 and facility 3, similar production GG8 gas turbine engines are tested in test cells. The facility 1 boilers, facility 2

boilers, facility 2 engines and facility 3 engines are subject to Section 22a-174-

22 ofthe Regulations' of Connecticut State Agencies ("Regulations"), pertaining

to the control ofNOx emissions.

3. Official U.S. Environmental Protection Agency Reference Method 7 stack

testing performed on February 6, 7 and 9, 1996 on facility 1 boilers, January 10

.through January 12, 1996 on facility 2 boilers, May 1, 1996 on a facility 2

engine, and July 28,1998 on a facility 3 engine (for natural gas only), resulted in

NOx ~mission rates as shown in Table 1 below:

Initials: 0'"-";../

(Printed On Recyelec! hper)

79 El::n Street • Hanford, CT 06106· ~127

h ltp :11c! ep.st lie. Ct.llS

An Eq..al Opporluniry rrc:ployu

Dale:
UNITED TECHNOLOGIES

CORPOR",TlON

2

TABLE!

TR".DING AGREEMENT

AND ORDER NO. 8!34

•

F:lciIiIJI DEP Fuel He:! St:lck Test RACTo r::lte

Equipment Rezistration Intut Rate: (lb/MMBtll I Permit no. (l\ MBrul (lbMMBtu except where

h,) except otherwise

where: noted)

otherwise

noted)

,

I Facility I - R39 " Nat gas 168 0.150 0.20

Boiler no. 6 #60i] 0.321 u 0.15.

Facility I- I R'I NaLga.s I ISO 0.293-- I 0.20

Boiler no. 8 #6 oil 0.438" • 0.15

Facility I -

I R42 I Nat gas I 189 0.352-- 0.20

Boiler no. 9 f 6 oit 0.444' • 0.25

Facility 2· I RIS I #6 oil I I" I 0.326" I 0.15

Boile: no. I

Facility 2 . I RI6 I #6 oil I I" 0.306·· I 0.25

Boile: no. 2

Facility 2· Pl' I #6 oil I 183 I 0.343" I 0.25

Boiler no. 3

Facility 2- I P36 #6 oil " I 0.378" I 0.25

Boiler no. 4

Facility 2- I P62 I Je: fuel I 260 I 380 I 75 ppmvd

engine ppmvd"

Facility 3- EI NaLgas 283 26 ppmvd 551:=d

engme Jet fuel 380 7 ppmvd

ppmvd··

"Reasonably Available CODtrol Technology'

•• Indicates that emission rate for t.lJ.e specified piece of equipment and fuel type is in excess of

the emission rates specified in Section 22a-174-22, Table 22-2, oft.l:I.e Regulations.

Note: To establish L!Je full load emission rate ("FLER'') for the facility 2 and facility 3 engines,

one engine was tested at facility 2, an.d one engine was tested at facility 3.

The facility 2 engine stack testing result was also used the test resuit for a facility 3 engine

onjet fuel.

4. On and after May 31, 1995, Section 22a-174-22(e) ofthe Regulations requires

tbat tbe facility I boilers, facility 2 boilers, facility 2 engines, and tbe facllity 3

engines emit NOx at rates no greater than the R..o..CT rates she,,",1l in Table 1

above. P&W proposes to use approved ERCs for compliance purposes at

facility I, facility 2 and facility 3, when and ifP&W chooses to operate tbe

facility 1 boilers, facility 2 boilers, faciliiy 2 engines, and facility 3 engines on

Initials: Date;
UNITED TECHNOLOGIES

CORPORATION

.,

'" TR,WING AGREEMENT

AND ORDER NO. 8134

5.

fuels that exceed the RACT rates shov..n in Table I ahove.

Pursuant to Section 22a-174-22(j) ofthe Regulations, P&W acquired the

follo',),oing amounts of approved ERCs as sho\.vn in Table 2 below:

TABLE 2

6.

B.

c.

Date ,

. Ozone Season"Credits Non-ozone season credits

9/28/95 36 tons 28 tons

1/29/96 I 29 tons 30 tons

4/29/96 I 50 tons 50 tons

1/10/97 Owns 50 tons

12/10/97 otons 30 tons

Approved ERCs are defined for the pUIJlOse ofthis Trading Agreement and

Order as those which the Commissioner has provided written authorization for

use in compliance with Section 22a-174-22 ofthe Regulations.

The Commissioner, in accordance with the p'rovisions of this Trading Agreement and

Order, and pursuant to Section 22a-174-22(j) ofthe Regulations, hereby allows P&W to

comply with Section 22a-174-22 ofthe Regulations through the use ofERC trading

referenced in Section A herein, 10 achieve the NOx emission reduction required by

Section 22a-174-22(d)(2) ofthe Regulations.

With the agreement ofP&Wr the Commissioner, acting under Sections 22a·6, 22a-171,

22a-174, 22a-176, and 22a-l77 ofthe Connecticut General Statutes, orders P&W as

follows:

1. After May 3], 1995, and until May 1,2003 or until P&W achieves compliance

with the emission standards in Section 22a-174-22(e) of the Regulations,

whichever occu.rs earlier, P&W shall have in its possession approved ERCs and

shall document and record the amounts of all fuel and ERCs used by the facility

I boilers, facility 2 boilers and engines, and the facility 3 enginC?s each month,

and provide such records in accordance with the following and Section 22a-174-

22 ofthe Regulations:

a. Docwnent that sufficient approved ERCs are available for the facility 1

boilers, the facility 2 boilers, the facility 2 engines and facility 3 enllines

no later than the first of each calendar month to assure comDliance Ior, at

a minimum, that calendar mondl; .

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UNITED TECHNOLOGIES

CORPOR<\TION

4 TR<\DING AGREEMENT

AND ORDER NO. 8134

b. No later than the tenth day of each month, calculate ERCs used in the

preceding calendar month for each boiler and engine, as follows:

Boiler ERCs (tons) = [fuel use in MMBtu x (FLER in Ib/MMBtu - (0.95

x RACT rate in IbIMMBtu))] + 2000 poundslton;

Engine'ERCs (tons) = [(Hours of Operation x FLER in Iblhr) - (fuel use

in MMBtu x (0.95 xRACT rate in IbIMMBtu))] + 2000 pounds/ton;

Where:

• MeT rate = RACT rate shown in Tables 1 and 3 of this Trading

Agreement a..rld Order.

• FLER = full load emission rate sho'Wll in Table 3 ofthis Trading

Agreement and Order.

Discount = 5% design margin appLied to the RACT rate.

c.

d.

e.

Document and record monthly consumption offuel and ERCs;

No later than March], of each year this Trading Agreement and Order is

in effect, include with its annual emissions statement report to the

Commissioner, the montWy rate offuel consumption for each boiler and

engine and ERCs used by each boiler and engine for the previous

calendar year;

Retain records and supporting documentation as described in this section

for a minimum offive years, commencing on the date such records were

created;

f.

g.

Maintain documentation to attest to t.l:le fact that ERCs used during the

ozone season were generated during the ozone season. The ozone season

is from May I through September 30 in any calendar year. Generator

certification ofthis fact shall be sufficient; and

Provide the records specified above to the Commissioner within thirty

(30) days ofreceipt ofa wrinen request from the Commissioner.

2. Prior to May 1,2003 P&W shall comply during operatIon on the fuels shown in

Table 3·below with the enforceable maximum FLERs shown in Table 3 below,

averaged on a 24-hour basis:

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UNITED TECHNOLOGIES

CORPOR'\.TION

5

TABLE 3

TRADING AGREEMENT

AND ORDER NO. 8134

F:lcility/Equipm~nt Fu~1 FLER (IblMMBtu RACT rate OblM.l\1Btu

except where otherwise except where otherwise

noted) noted)

Facility 1 - Boiler no. 6 I #6 oil 0.33 0.25

Facility 1 - Boiler no. 8 Nat fas 0.30 0.20

#6oi 0.45 0.25

facility 1- Boiler no. 9 Nat. Gas 0.36 0.20

#6 oil 0.45 0.25

Facility 2 - Boiler no. 1 #6 oil 0.35 0.25

Facility 2 - Boiler no. 2 #6 oil 0.35 0.25

Facility 2 - Boiler no. 3 I #6 oil 0.35 I 0.25

Facility 2 • Boiler no. 4 #6 oil 0.40 I 0.25

Facility 2 - engine Jet fuel 230 Ib/hr 0.292 (75 ppmvd)

Facility 3 - eogine Jet fuel 2301blhr 0.292 (75 ppmvd)

Each facility 2 and facility 3 engine shall comply with the FLER set fonh in Table 3 abcve.

3. No later than May 1,2003, P&W shall comply with the requirements of Section

22a-174-22(d)(2) of the Regulations. However, after full program review of this

and other Trading Agreements and Orders and, ifdetermined to be appropriate,

the Commissioner may grant a wrinen extension of this Trading Agreement and

Order.

4. FLERs, stack test rates and fuels set forth in Tables 1 and 3 may be modified

only after the consent ofthe Commissioner by 'Written modification ofthis

Trading Agreement and Order.

5. As used in till::i Trdding Order, "Commissioner" means the Commissioner of

Environmental Protection or an agent ofthe Commissioner. "Ozone season"

means the period from May 1 through September 30 in any given calendar year.

6. Notification of noncompliance. In the event that P&W becomes aware that it

dId not or may not comPlY, or did not or may not comply on time, with any req~rement oftms Trading Agreement and Order or of any document required

hereunder, P&W shall by telephone immediately notify the Bureau ofAir

Management and shall take all reasonable steps to ensure that any

noncompliance or delay is avoided or, ifunavoidable. is minimized to the

greatest extent possible. P&W shall also notify the Commissioner in writing

\....ithin ten days of becoming aware ofthe noncompliance or potential

noncompliance stating the date, time, and duration of the noncompliance, the

Initials: Cjf.J....... Date: :/J..I( <:.

I I
UNITED TECHNOLOGIES

CORPORATION

6 TRillING AGREEMENT

A.>m ORDER NO. 8134

reasons for the noncompliance or delay and all activities "".-hieh P&W a.r:ld its

agents, employees and representatives took to avoid or repair the results ofthe

noncompliance and prevent the noncompliance, and propose, for the review and

wrinen approval ofthe Com:missioner, dates by which compliance will be

achieved. Notification by P&W shall not excuse noncompliance or delay, and

the Commissioner's approval of any compliance dates proposed shall not excuse

noncompliance or delay unless specifically so stated by the Commissioner in

writing. Nothing herein shall negate P&W's obligation to comply with Section 22a-174~7 ofthe Regulations. To the extent that the provisions of Section 22a·

174-7 are inconsistent with the provisions oftrus Trading Agreement and Order.

the more stringent ofthe provisIOns in the Trading Agreement and Order or

Section 22a-174-7 shall control.

7. Certification of documents. Any document, including but not limited to any

nonce, which IS reqUlied to be submitted to the Commissioner under Uris

Trading Agreement and Order shall be signed by the responsible corporate

officer ofP&W or a duly authorized representative ofsuch officer, as mose

terms are defmed in Section 22a-430-3(b)(2) ofthe Regulations. and by the

individual or individuals responsible for actually preparing such docll."nent, each

ofwhom shall. examine and be familiar with the information submitted in tl)e

document and all attacp.ments thereto, and shall make inquiry of those

individuals responsible for obtaining the infonnation to determine that the

information is true. accurate. and complete, a.TJ.d each of whom shall cerJ.fy in

writing as follows:

"I have personally examined and am familiar with the inforro.ation submined in

this document and all attachments thereto. and I certify that based on reasonable

investigation, including m"y inquiry ofthose individuals responsible for

obtaining the information, the submitted information is true, accurate and

complete to the best ofmy knowledge and belief. I understand that any false

statement made in the submitted information may be punishable as a criminal

offense under Section 22a-175 ofthe Connecticut General Statutes or, in

accordance with Secclon 22a-6 ofthe Connecticut General Statutes, under

Section 53a-157b oftbe Connecticut General Statutes. and in accordance with

a.1JY other applicable statute."

8. Final A~eement and Order. This Trading Agreement and Order is the final

agreement ana oraer by ano between the Commissioner and P& W with respect

to the matters addressed herein, and shall not be modified without the written

agreement of both parties.

9. False statements..t:uJ.y false statement in any information submined pursuant to

t..hJ.s liadmg Agreement and Order may be punishable as a criminal offense

under Section 22a-175 ofthe Connecticut General Statutes or, in accordance

with Section 22a-6. under Section 53a-157b ofthe Connecticut General Statutes.

10. Notice oftransfer; liability ofP&W and others. Until P&W has fully complied

WIth tJus 1radmg Agreement and Order, ?& Wshall notify the Commissioner in

\-vriling no later than fifteen (15) days after transferring all or any portion of the

facilities. the operations, the sites or the businesses which are the subject ofthis

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UNITED TECHNOLOGIES

CORPORUION

7 TRADING AGREEMENT

A.l'/D ORDER NO. 8134

11.

12.

13.

14.

15.

16.

Trading Agreement and Order, or obtaining a new mailing or location address.

Any license transfer shall be conducted in accordance with Section 22a-60 ofthe

Connecticut General Statutes. P&W's obligations under this Trading Asrreement

and Order shall nor be affecred by the passage oftitle to any property to-any

other person or municipality.

Commissioner's powers. Nothing in this Trading Agreement and Order shall

atteet the COmmISSIoner's authority to institute any proceeding or take any other

action to pre~eht or abate violations oflaw, prevent or abate pollution, recover'

costs and natUral resource damages, and to impose penalties for violations oflaw

which are willful or criminally negligent or for which penalties have not been

specifically provided in this Trading Agreement and Order, including but not

llInited to violations of any permit issued by the Commissioner. If at any time

the Commissioner determines that the actions taken by P&W pursuant to this

Trading Agreement and Order have not fully achieved compliance with Section

222·174-22 ofthe Regulations, the Corrmlissioner may institute any proceeding

against P&W and/or require P&W to undenake further investigation or funher

action.

P&W's obligations under law. Nothing in this Tradino Agreement and Order

shan relIeve pezWot other obligations under applicabie federal, state and local

law.

Access to records and facility. Any repre.sentative oftb~ pepartm~nt of

EnvlTonmentaI Protecuon may enter and mspect the faclhues and lnspect and

copy records within Donnal business hours without prior notice for the purposes

ofmonitoring and enforcing the actions required or allowed by this Trading

Agreement and Order.

No effect on ri hts of other ersons. This Trading Agreement and Order shall

nel er create nor ect any n 15 of persons who or municipalities which are

not parties to this Trading Agreement and Order.

No Creation ofPro Ri 15. This Trading Agreement and Order does not

create any propeny n 15 W1 respect to these ERCs.

Notice to Commissioner of changes. Within fifteen (15) days oftbe date P&W

becomes aware of a cnange 1D any liifonnation submitted to the Commissioner

under this Trading Agreement and Order, or that any such infonnation was

inaccurate or misleading or that any relevant information was omitted, P&W

shall submit the correct or omitted information to the Commissioner.

Initials: iJ·~" ' Date: .....:.'(L3C!-).:c~'_0
UNITED TECHNOLOGIES

CORPORf;nON

8 TRWING AGREEMENT

AND ORDER NO. 8134

17. Submission ofdocuments. A..'1y document required to be submitted to the

COn:unlssloner under thIs Trading Agreement and Order shall, unless otherwise

specified in writing by the Commissioner, be directed to: .

Ms. Wendy Jacobs

Department ofEnvironmental Protection

Bureau ofAir Management

Compliance and Field Operations Division

Emissions and Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127

Initials: r.lJ.1I../ Date: II"::/cr:..

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UNITED TECHNOLOGIES

CORPORATION

9 TR,WING AGREEME "T

AND ORDER NO. 8134

P&W consents to the issuance of this Trading Agreement and Order v.rithoUl funher notice.

The undersigned certifies that he/she is fully authorized to enter ioto this Trading Agreement

and Order and to legally bind P&W to the terms and conditions of the Trading Agreement and

Order.

United Technologies COrpQration

Sig;ature: (Jb.w.~/!lft'..L- Type Name: Claudia R. Coplein

Type Title: VP, Environme Health & Safety

Date: January , 2000

J~afinal cuntord~hCo , ssioner of~ro ental Protection on

~/w ., ; /iL2 ~e:!Y- CITY OF EAST HARTFORD, TOWN OF MIDDLETOWN

LAND RECORDS .

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No.