# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of The State ofConnecticut and J0iddletown PowerLLC 

# , ) ) ) ) ) Trading Agreement and Order No. 8214A



# .'

.... - Whereas, the Commissioner ofEnvironmental Protection ("Corrunissioner") and Middletown PowerLLC (":tv1P") agree that it is in the public interest that they work cooperatively to improve the air quality within the State ofConnecticut and that the use of 

### discrete emission reduction credit ("DERC") trading to reduce nitrogen oxide ("NOx") emissions will achieve this result in a timely and cost-effective manner. A. At the request and with the agreement ofN1P, the Commissionerfinds the following: 1. This Trading Agreement and Order supercedes Trading Agreement and Order 8214 issued on March 22, 2002. 2. MP is an exempt wholesale electric generating company with its principal place ofbusiness in Sewickley, Pennsylvania. On December 15, 1999?v1P purchased from The Connecticut Light and Power Company and now owns one fossil fuel-fired electric generating station, :tv1iddletown Station, at 1866 River Road, :tv1iddletown, Connecticut ("facility"). 3. At the facility, NRG :tv1i.ddletown Operations Inc. operates fuel burning equipment, consisting of:tv1iddletown Station Unit 3, a 245 megawatt cyclone boiler, Connecticut Registration Number 104-0100 ("boiler"). The boilerhas the dual capacity to operate on No.6 fuel oil, No.2 fuel oil and/or natural gas. No.2 fuel oil is used primarily as an ignition fuel as part ofthe start·up procedure. A continuous emissions monitor ("CEM") certified to 40 Code of Federal Regulations ("CFR") Pan 75, measures NOx emissions from the boiler. 4. The boiler sometimes exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations. 5. To reduce excess NOx emissions 

### :MJ> has represented that it monitors and controls the combustion process ofthe boiler, and burns natural gas, so that emissions frequently can be kept below the NOx emission limitations established by Section 22a-174-22(e) ofthe Regulations.
6. Pursuant to Section 22a-174-220) ofthe Regulations, during; the non-ozone season, 

### :tv1P intends both to acquire and generate approved DERCs until September 30, 2004 for the boiler at the facility. Pursuant to Section 22a-174- (Printed on Recycled Paper} 79 Elln Sueet • HanfofQ, CT 06106

- 5127 bup://dep.sule.cl.us A.n Equal Opponuniry Err.ployuMiddletown Power LLC Trading Agreement Jnd Order No. 8214A



# 0 ,,:

.. 

# .. 22m ofthe Regulations, during the ozone season, 

### M:P intends both to acquire and generate approved Budget discrete emission reduction credits ("BDERCs") until September 30. 2004 for the boiler at me facility. 7. When properly documented by MY. and approved by the Corrunissioner, the emission reduction's identified above, and as computed in accordance with the tenns ofthis Tra'cing Agreement and Order, will 

### ccofenn to the requirements ofSection 22a-174-22UJ(3) ofthe Regulations. Specifically, the reductions will be: Real because they will result in areduction ofacrual emissions released into the air, net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions will be properly measured, recorded and reported. Quantifiable because they are based on CEM data as applied in an appropriate reliable and replicable premcol, providing the rate and total mass amount ofreduction. Surplus because they are not required by any Connecticut statute or regulation mandated by a current State Implementation Plan ("SlP"), and are not currently relied upon in any applicable anainment plan, any reasonable funher progress plan or milestone demonstration. Pennanent because the advanced control system and installation capabilities are in piace and operating, and an appropriate tracking system is in place to monitor all data required to verify and quantify the creation of DERCs. Enforceable because the DERCs are approved by the Commissioner retrospectively after the submission by:MP ofareport that documents their creation. 8. The emissions trading baselines ("baseline emission rate") and the allowable emission limits for the boiler in pounds per million British thennal units ("lbslMMBtu") ofheat input when operating on fuel oil and natural gas are provided on the following table 1:

2

### Middletown PowerLLC Trading Agreement and Order No. 8214A
Table 1 NOx Allowable Limits and Baseline Emission Rate in IbsIMMBtu Emission Fuel Heat Input Emissions AllowablelBaseline emission Unit. MMBtu/hr Test rate IbsIMMBcu Boiler 3 No.6 2,370 CEM 0.43 Registration No.2 

## , CEM 0.17 

# , No. 104-0100 NacGas CEM 0.43


### 9. Starting on Ocwber 1, 2003, and during the period from October 1 through April 30, inclusive, each year until September30, 2004,:MP may only obtain approval ofactual reductions in NOx emissions, generated by operating the boiler at arate thatis below 0.15 lbs!M:MBtu during the non-ozone season on No.6 fuel oil, No.2 fuel oil, and/ornatural gas. 10. The Commissioner, in accordance with the provisions ofTrading Agreement and Order 8214 and Addenda 1 and 2, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, previously approved the non-ozone season NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers (ifassigned by the Department) to 

### these previously approved reductions ofNOx emissions are provided in Table 2 ofthis Trading Agreement and Order. DERCs are subject to the vintage restrictions in this Trading Agreement and Order. Dates that after which the unused DERCs will no longer be eligible for use as aresult ofthe vintage restrictions are providedin Table 2 ofthis Trading Agreement and Orderin the expiration date column. 

### Previously approved N 

### x s Year of**Non~ozone** season NOx DERC Tons Expiration Generation serial numbers Date 

### 1999 CT99/8214(DC)NOxnozl-8 8 12131/04 

### 2000 CTOO/8214(DC)NOxnozl-372 372 12/31/05 2001 CTO1/8214(DC)NOxnozl-43 43 12131/06 

### Table 2 

# o DERC

B. The Conunissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows MP to: 1. 

### Comply with Section 22a-174-22(d)(l) ofthe Regulations through use ofBDERC and DERC trading;



## , . 

### 2. Ozone season BDERCs may be generated and used in accordance wlth this Trading Agreemem and Order; and 3Middletown PowerLLC Trading Agreement and Order No. 8214A



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'-- 3. Upon sufficient documentation as prescribed in this Trading Agreement and Order, generate additional BDERCs and DERCs. Upon issuance ofan addendum to this Trading Agreement and Orderthe Commissionermay approve the generation of additional BDERCs and DERCs by MP retrospectively. Approved BDERCs and DERCs generated by 

### l'v1P may be held by MP orrransferred to otherpersons in accordance with thisTrading Agreement and Order. C. With the agreement of:M}l, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 ofthe Connecticut General Statutes, hereby orders MP as follows: 1. Upon issuance ofthis Trading Agreement and Order, MP may generate approved BDERCs and DERCs as allowed underthis Trading Agreement and Orderuntil" September 30, 2004. 2. Upon issuance ofthis Trading Agreement and Order, at the facility, MP shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading. Until MP achieves pennanent compliance with the emission standard in Section 22a-174- 22(e) ofehe regulation or by September 30, 2004, whichever occurs earlier:

a. :MP shall use approved DERCs and BDERCs as required underthis Trading Agreement and Order; and b. MP shall have in its possession sufficient approved BDERCs and DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order. 3. DERC generation.

a. Until September 30, 2004, when the boilerhas dailyNOx emissions below the applicable baseline emission rate(s), orthe proportionedbaseline emission rate, orwhen the boilerhas seasonal NOx emissions below 0.15 lbSl1vfMBtu during the non-Olone season starting on October I, 2003,:MP shall calculate the amount ofDERCs generated as follows: DERCs (tons) 

### = 

### I[Total heatinput' ofall fuels in MMBtu x «proportioned baseline emission raee2)

- (the CEM-recorded NOx emission rate'))] 7 2000 Ibslton) x 

### (0.90)'

1Heal input shall be calculated using the lower ofCEM-recorded d3l3 or aCNa! fuel US<lge data in MMBtU per unit offuel combusted.


# ,Middletown PowerLLC 

### Trading Agreement and OrderNo. 8214A
2This f:lte shall be calculated by 1) multiplying the he"'! input ofeach fuel combusted by the baseline emission rate(s) for such fuel: 2) summing those productS: and 3) dividing the sum by the total heal input. Ifthe boiler is operating exclusively on one fuel, }.{P may replace the proportioned baseline emission rate with the applicable baseline emission rate, for that fuel. Starting on October 1, 2003. the baseline emission rate during the non-ozone season shall be 0.15 lbs!MMBlu. 

# , )During the'ozone season until. September 30. 2004 and during the non-OZOne season until October 1.2003, this rale shall be calculated pursuant to the methodology described in 40 Code ofFederal Regulations Part 75 and weighted pursuant 10 the Depanment's policy Statemententitled "Guidance for Calculation ofEmission Reduction Credits and Detennination ofCompliance with NOx RACT for Sources Subject to 40 CFR 75 (Acid Rain Sources)" dated December 18, 1998 which is attached to and incorporated by reference into this Trading Agreement and Order as part ofAttachment 1.

•An additional ten (10) percent ofall DERCs (tons) generated by the boiler shall also be retired by the facility and pennanently removed from all calculations on a daily basiS to assure a benefit to the envirorunenL Starting on October 1, 2003. during the non-ozone season, the ten percent discount shall be retired by the facility and permanently removed from all calculations on a seasonal basis to assure a benefit [0 the environmenL 

### b. During the ozone season until September30. 2004 and during the non-alone season until October 1. 2003: Forpurposes ofcalculating the number of BDERCs and DERCs generatedfrom the boiler at the facility,.MP shall use the baseline emission rates for the boiler, orthe proportioned baseline emission rate set fonh in footnote 2 ofparagraph C.3.a. of this Trading Agreement and Order, when simultaneously operating on more than one fuel. 

### MP shall use the above referenced baseline emission rate(s) when calculating the proportioned baseline emission rate.

c. Stmin£: on October 1. 2003 and until September 30. 2004 during the non· ozone season: Forpurposes ofgenerating DERCs from the boiler at the facility, shall use 

### 0.15 IbsJM:M:Btu 

### ofheat input when operating on No. 

### 6 fuel oil, No.2 fuel oil, and/ornatural gas as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (lOns) generated by the boiler shall be retired by the facility and permanently removed from all calculations on anon-ozone season basis to assure a benefit to the environment. d. Non-ozone Season Restrictions. Non-ozone season NOx DERCs generated by:MP shall be created and approved in accordance with this Trading Agreement and Order, and shall remain valid until they are used or until their vintage expiration date, oruntil September 30, 2004, whichever occurs first.

5Middletown PowerLLC Trading Agreement and OrderNo. 8214A



### e. DuriTIS!: the ozone season until September 30. 2004 and duriTIS!: the non-ozone season until October 1. 2003: In requesting approval ofDERCs generated 

### by the boiler, 

### :MP shall provide documentation containing a sample spreadsheet with calculation fonnulas used to determine reponed numbers; monthly operating reports ofactual fuel usage including the fuel BTU content, number of 

### gallons, and cubic feet used foreach fuel type; daily 

### lv1Jv1Btu for each fuel type and actual heat input based upon CEM-recorded data; daily weighted and unweighted actual NOx emission rates (24-hour average); and DERCs generated using the baseline emission fale(s), orthe proportioned baseline emission rate set forth in footnote 2 ofparagraph C.3.a. ofthis Trading Agreement and Order, net ofthe ten (10) percent environmental discount.**~\** 

### <J f. During: the non-ozone season starting: on October 1. 2003 and until September 30,2004: 

### In requesting approval ofDERCs generatedby the boiler, 

### M:P shall provide documentation containing a sample spreadsheet with calculation fonnulas used to determine reported numbers; non-ozone season operating reports ofactual fuel usage including the fuel BTU content, number ofgallons, and cubic feet used for each fuel type; non-ozone season 

### M:MBtu for each fuel type and actual heat inputbased upon CEM-recorded data; non-ozone season actual NOx emission rates (seven month average); and DERCs generated using the 0.15 IbsJM:MBtu baseline emission rate(s); net ofthe (10) percent environmental discount. 4. When the daily ornon-ozone season CEM-recorded NOx emission rate is used to calculate DERCs generated'by the boiler, MP shall not include missing data calculated in accordance with any missing data substitution procedures, including those allowed under Section 22a-174-22b ofthe Regulations and 40 CFR Part 75. 5. Upon sufficient documentation, as detennined by the Commissioner, that MP has met"the requirements ofthis Trading Agreement and Order, the Commissionermay provide written approval ofDERCs generated by:tv1P retrospectively. Requests for approval ofall subsequentDERCs created shall be submitted in writing to the Commissioner, Such requests shall be compiled on a monthly basis and shall be submitted at least on an annual basis. Approved DERCs generated by 

### :M:P under this Trading Agreement and Ordermay be held ortransferred to otherpersons,

6. DERC use. Until September 30,2004, before the first day ofeach month, and starting on October I, 2003 also before the first day ofeach non-ozone season, MP should have in its possession sufficient approved DERCs for the boiler based on the following: 6



# - .Middletown PowerLLC Trading Agreement and OrderNo. 8214A

3. At all 

### times: 

### Before the first day ofeach month, calculate projected worst case DERCs required for thatcalendarmonth as follows: 

## , EstimatedDERCs (tons) 

### = {{estimated worst case NOx emission rate in IbslMMBtu

- ((0.95) x (NOx allowable emission limit orproponioned emission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu))J x (Estimated fuel use in MMBtu)} t 2000 pounds/tons. 

### No laterthan the twentieth day

### ofeach month, rv1P 

### shall calculate and permanently retire DERCs used in the preceding calendar month, as follows: (i) Forthe boileron each day, determine whetherthe 24-hour average NOx emission rate* is less than the baseline emission rate orgreaterthan the NOx allowable emission 

### limit. (ii) When the boilerhas a daily NOx emission rate (24-hour average) exceedingthe NOx allowable emission 

### 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 emission limit orproportioned emission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu))] x (actual fuel use in MMBtu)} .;. 2000 poundsltons. *This rate shall 

### be calculated pursuant to the methodology described in 40 CFR Pan 75.

(iii) With the exception ofBDERCs, excess DERCs from previous months can 

### be applied to subsequent months. BDERCs are subject to the limitations set forth in paragraph 

### C.7. ofthis Trading Agreement and Order. b. During the non-Olone season starting Qn October 1. 2003: 7



## ,Middle'own PowerLLC Trading Agreement and OrderNo. 8214A In addition to meeting the**24~hour** emission limit in Table**22~1** ofSection 22a-174-22 ofthe Regulations, meet anon-ozone season emission limit of 0.15IbslMMB<u. Priorto October I, 2003, MP shall estimate and acquire the amount ofDERCs or allowances required for such non-ozone season needed to comply with Section 22a·174-22(e)(3) ofthe Regulations as follows: I 

## , Estimated DERCs (tons) 

### = [Estimated fuel use in :f\.1}..ffitu from October 1 through April 30 x (lower ofthe estimated seasonal average NOx errtission Tate or the proportioned 24-hour allowable emission limit in Ibsf.M1vfBtu dUring October 1 through April 30)

- (0.95 

### x0.15 IbsIMMB<u)] 2000 pounds/ton. No laterthan May 31, 2004, in addition to the DERCs retired in paragraph C.6.a., calculate and pennanentlyretire DERCs used in the preceding non-ozone 

### season as follows: Actual DERCs (tons) 

### = (Actual fuel use in :M1v1Btu from October 1 through April 30 x (lower ofthe actual seasonal average NOx emission rate or the proportioned 24-hour allowable emission limit in IbsJM:MBtu during October 1 through April 30)

- (0.95 x 0.151bsIMMBru)] 2000 pounds/ton.



### c. When the daily or non-ozone season CEM-recorded NOx emission rate is used to calculate DERCs used by the boiler, MP shall include missing data calculated in accordance with missing data substitution procedures under40 

### CFR Pan 75. 7. BDERCs shall only 

### be used by otherNOx Budget Program sources located in Connecticut. BDERCs shall only 

### be used to offset ozone season excess emissions. and shall not be used forcompliance during the non-ozone season. BDERCs generated during a given year shall only be used during the following ozone season. BDERCs are subject

### w all DERC requirements setfonh in this Trading Agreement and Orderexcept for those requirements penaining solely to non-ozone season DERCs and as otherwise may be provided. 8. MP shall make and keep records for the boilerof: daily fuel use and fuel type; excess NOx emissions; daily NOx mass emissions. the actual NOx emission rates**(24~hour** average) and starting on October 1. 2003 non-ozone season NOx emission rareSt number ofoperating hours perday. the number ofinvalid data hours ofthe total operating hours per day; the number ofDERCs in its possession. created. purchased and 8Middletown PowerLLC Trading Agreement and OrderNo. 8214A used (by serial number

### ifassigned) each month in accordance with the appropriate emission rates and limits in this Trading Agreement and Order; the number ofDERCs used during the ozone season and 

### non-Olone season (the remainder ofthe ye2I"); as well as documentation anesting to the fact that approved DERCs used during the ozone season were generated during the ozone season. Generator certification ofthis fact shall be sufficient. MP shall maintain and submit such records in accordance with 

## , Section 22a-174·22 ofthe Regulations. 9. Record Keeping. MP shall retain records and supporting documentation as described in this Trading Agreement and Orderfor a minimum offive years, commencing on the date such records were created

. .MP shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. 10. Annual Emission Statement. No laterthan March 1 ofevery year afterissuance ofthis Trading Agreement and Order, MP shall include with the .tumual Emission Statement provided to the Commissioner, arecord ofeach sale or othertransfer, and use ofany and all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longerin MP's possession. MP shall also include actual NOx emissions from the boiler and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated andlorpurchased from otherfacilities), generated and/or approved for the previous calendar year. These reports shall 

### be on a fonn prescribedby the Commissioner and shall be in monthly increments. ShouldMP choose to discontinue the generation ofDERCs, will notify t!1e Commissionerupon discontinuance. MP shall retain records and supporting documentation as described in this Trading Agreement and Orderfor a minimum offive years, commencing on the date such records were created

. .MP shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner. II. Allowance Use. Pursuant 10 Section 22a-174-22(d)(3) ofthe Regulations, MP may use NOx allowances, pursuant to Section 22a-174-22(j) 

### of the Regulations to achieve all or aponion ofthe reductions required by Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe Regulations shall be subject to all restrictions andlorrequirements applicable to DERCs containedin this Trading Agreement and Order. Each allowance used forcompliance with Section 22a174-22 ofthe Regulations shall 

### be equivalentto one discrete emission reduction credit and shall be deducted from MP's NOx BudgetProgram compliance account upon such use. Allowances shall be considered used for compliance with Section 22a-174-22 of the Regulations when they are transferred from the facility's compliance account or

9

### Middletown PowerLLC Trading Agreement and OrderNo. 8114A



# C")



# -

'-- overdraft account to a State ofConnecticut NOx allowance retirement account, account ill 

### CTOOOOOOO300 in the NOx Allowance Tracking System. 12. DERC Doubling. At aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in :M}l's possession for use prior to the first day ofeach month or applicable season. However, based on the gravity ofthe noncompliance, the Commissioner may require additional upward adjusLmenl. 13. Vintage Restriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCs/allowances shall only remain valid for five (5) calendaryears from the year ofthe generation/allocation ofsuch DERCslallowances. DERCslallowances generated/allocated more than five (5) calendar years ago are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above the DERCs/allowances generated/allocated prior to calendar year 2000 shall be valid for use until December 31, 2004. 14. Extension. No laterthan September

### 30, 2004, with respect to the boiler, MP shall comply with the requirements ofSubdivision 22a-174-22(d)(1) ofthe Regulations. However, afterfull program review ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Commissionermay grant a wrinen extension of this Trading Agreement and Order. 15. Fmure Compliance Repon. On orbefore March 31, 2004,:M}l shall submit arepon indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boileron. and after September30,2004. 16. Full compliance. 

### M:P shall notbe considered in full compliance with this Trading Agreement and Order until all actions required by this Trading Agreement and Order have been completed as approved and to the Commissioner's satisfaction. 17. Approvals. shall use best effons to submit to the Commissionerall documents required by this Trading Agreement and Orderin acomplete and approvable fonn. 

### If the CommissionernOtifies MP that any document orother action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and:MP shall correct the deficiencies andresubmit 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 orotheraction underthis Trading Agreement and Order, the Commissioner may approve the document or otheraction as submitted orperfonned or with such conditions or modifications as the Commissioner deems necessary to 

### carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance ordelay.

10Middletown PowerLLC Trading Agreement and OrderNo. 8214A**~)** 

# - 18. Definitions. As used in this Trading Agreement and Order, "ApprovedDERCs" are mose for which the Commissionerhas provided written authorization for use in compliance with 

### Section 22a-174·22 ofthe Regulations; "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; "Ozone season" means the period from May 1 through September 30 in any given calendaryear. The date of "issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Order is deposited in-the U.S. mail orpersonally delivered, whicheveris earlier. 19. Dates. The date ofsubmission to the Commissionerofany 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 CommissionerunderTrading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofany document orotheraction, shall be the date such notice is deposited in the U.S. mail or is personally delivered, whicheveris earlier. Except as otherwise specifiedin this'Trading Agreement and Order, the word "day" as used in this Trading Agreement and Order means calendarday. Any document or action which is required by this Trading Agreement and Orderto be 

### submittedorperformed by a date which falls on a Saturday, Sunday or a Connecticut orfederal holiday shall be 

### submitted orperformed by the next day which is not a Saturday, Sunday orConnecticut orfederal holiday. 20. Certification ofdocuments. Any document, including but not limited to 

### any notice, which is required to be 

### submitted to the Commissionerunderthis Trading Agreement and Order shall be 

### signed by MP or, ifMP is not an individual, by an individual who is an authorized representative oLMP, in accordance with Section 22a·174-2a(a) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actually preparing such doc'ument, 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 bestofmy knowledge and belief. I understand that any faJse 

### statement made in the submittedinformation is punishable as acriminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law." 

### 21. Noncompliance. This Trading Agreement and Orderis a final orderofthe Commissionerwith respect to 

### the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject MP [0 

### an injunction and penalties.

11Middletown PowerLLC Trading Agreement and Order No. 8214A

\

### ... ' 22. False statements. Any false statement in any infonnation submitted pursuant to this Trading Agreement and Orderis punishable as acriminal offense under Section 53a157b ofthe Connecticut General Statutes and any other applicable law. 23. Notice oftransfer: liability of

### rv1P. Until:tv1P has fully complied with this Trading Agreement and Order,lMP shall notify the Commissionerin writing no later than 15 days after transferriii'g all or any ponion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Orderor after obtaining a new mailing orlocation address. :tv1P's obligations under this Trading Agreement and Order shall not be affected by the passage oftitle to any propeny to any otherperson or municipality. 24. Commissioner's DOwers. Nothing in this Trading Agreement and Order shall affectthe 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 penalties for past, present, orfuture violations oflaw. If at any time lhe Commissionerdetermines thatthe actions taken by MP pursuant to this Trading Agreement and Orderhave not succ.essfully corrected all violations, fully characterized the extentordegree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require MP to undertake further investigation orfurther action to preventor abate violations orpollution. 25. N1P's obligations underlaw. Nothing in this Trading Agreement and Order shall relieve MP ofotherobligations under applicable federal, state and local law. 26. 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 Commissioner that the actions taken by :tv1P pursuant to this Trading Agreement and Order will result in compliance orpreventor abate pollution. 27. Access to facilitv. Any representative ofthe Department ofEnvironmental Protection may enter the facility without priornotice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order. 28. a effect on ri2'hrs ofother**pe~ons.** This Trading Agreement and Orderneither creates nor affects any rights of**pe~ons** ormunicipalities that are not panies to this Trading Agreement and Order. 29. No Creation ofPrQpenv Rights. This Trading Agreement and Orderdoes not create any property rights with respect to these DERCs.

12

### Middletown Power LLC Trading Agreement and 

### Order o.8214A 30

.. IOtice to Commissionerof**cham~es.** 

### Within 15 days ofthe date MP becomes aware of achange in any information submitted to the Commissionerunderthis Trading Agreement and Order, orthat any such information was inaccurate or misleading or that any relevant information was omitted, MP shall submit the correct or omitted information to the Commissioner. I 

## , 31. Notification ofnoncompliance. 

### In the event that MP becomes aware that it did not or may notcomply, ordid nOt ormay notcomply on time, with any requirement ofthis Trad.ing Agreement and Orderor ofany document required hereunder. MP shall immediately notify by telephone the ind.ividual identified in the next paragraph and shall Lake all reasonable steps [0 

### ensure that any noncompliance or delay is avoided or, ifunavoidable, is minimizedto the greatestextentpossible. Within five (5) days ofthe initial notice, MP shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance ordelay and propose, fofthe review and wrinen approval ofthe Commissioner, dates by which compliance will be achieved, andMP shall comply with any dates which may be approved in writing by the Commissioner. Notification by MP shall not excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so statedby the Commissionerin writing. 32. Submission ofdocuments. Any document required to be 

### submined to the Commissionerunderthis Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Orderorin writing by the Commissioner, be 

### directed to:**~. ~chael** **~eur** 

### Department ofEnvironmental Protection Bureau ofAirManagement Emissions and CreditTrading Section 

### 79 Elm Street Hartford, Connecticut 06106-5127

13**Middl~town Pow~r**  

### LLC Trading Agreement and**Ord~r** 

### No. 8214A



# 1 /:

# .~**~/ ~j6:.{/** 

Anhur 

### I. Rocque, Ir. 

### Commissioner MPconsents to the issuance ofthis Trading Agreement and Orderwithout further notice. The undersigned certifies that he/she is fully authorized to enterinto this Trading Agreement and Order 

### and to 

### legally bindMP to 

### the terms and conditions ofthe TradingAgreement and Order. Middletown Power LLC


### Signature

# 1~&2dU!- Name

# C;n~~O{liC Title

# Re:yro:J EnUI(()(IMtcrfC<! 

# VfuJ'CLjif Date, 

## Lj-C)c-cO

Issued 

### as a

# t orderofthe Commissionerof Environmental Protection

on

# I~J**,~O** . ,2003 

# j

TOWN OFMIDDLETOWNLAND RECORDS 

### MAll..ED CERTIFIED MAIL. RETURN RECEIPT REQUESTED Cenified DocumentNo.



# "