SIP DESCRIPTION

- Montville Power LLC Trading Agreement and Order No. 8217A Modification 1 I. SIP

- DESCRIPTION OF DERC CREATION AND/OR USE SIP SUMMARY TABLE Tradin2 AQreernent and Order No. 8217A Montville Power LLC 74 Lathrop Road Montville CT 06382 Identifier 

# IClient7741 Town # 107 Premise #

### 2. I 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 Allcncies. Nonattainment Area Classification Severe Annual DERCs needed Estimated 50 non-ozone Annual DERCs 2cnerated Estimated40 ozone (BDERCs Compliance Time Period Until Anri130, 2007. Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and Use. (SeeTable I below):

Table 1 NOx Emission Rates and Allowable Limits 

### Unit Fuel 

### Maximum StackTest FLER Allowable 

### Date of Next PIR number Capacity (ppmvd) IbslMMBtu Rate Stack Stack MMBtulhr IbslMMBtu Test 

### Test Due Boiler 6 #6 oil 4658 CEM CEM 0.25 NA NA R-I07-0020 #2 oil 

### " " " 0.17 

### " " Non-ozonec 

### " " " 0.15 

### " "
II. SPECIAL REQUIREMENTS


### a. This Trading Agreement and OrderModification supersedes Trading Agreement and OrderNo. 8217A issued on April 30, 2003. 

### b. Calculations ofcredits used or generated shall be as specified in Trading Agreement and Order No. 8217A.


### c. Starting on October 1, 2003 and until April 30, 

### 2007 during the non-ozone season: For purposes ofgenerating DERCs from the boilerat the facility, Montville Power LLC shall use 0.15 Ibs/MMBtu ofheat input when operating on No.6 fuel oil, and/or No.2 fuel oil 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 

### pennanently removed from all calculations on anOll-ozone season basis to assure a benefit to the environment.

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT AND MONTVll.LE POWER LLC

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- '--"' L 1 TRADING AGREEMENT AND 

## , [8y ORDER NO. 8217A MODIFICATION NO. I
TRADING AGREEMENT AND ORDER MODIFICATION In 

### the matter ofaTrading AgreementandOrderbetween the CommissionerofEnvironmental Protection ("Commissioner") and Montville PowerLLC ("MPLLC"). WHEREAS, the Commissioner and ?v1PLLC, having agreed to the terms and conditions set forth in Trading Agreement and Order No. 8217A issued on April 30, 2003, do now, 

### by mutual agreement, modify said Trading Agreement and Order as follows: I. Delete the date September 30, 2004, and substitute therefor May 1,2007, in paragraphs A.9., C.I., C.2., C.3.a., C.3.a. footnote 3, C.3.b., C.3.c., C.3.d., C.3.e., C.3.f., and C.6. 2. 

### Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a-I74-220) ofthe Regulations, MPLLC intends both to 

### acquire and generate approvedDERCs until May 1, 2007 for boiler 6 at the facility. ApprovedDERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Conunissioner has provided written authority for use in compliance with Section**22a~174-22** ofthe Regulations. 3. Delete paragraph B.lo and substitute the following therefor: Comply with Section 22a-I74-22(d)(I) ofthe Regulations through use ofBudget Discrete Emission Reduction Credit ("BDERC") and DERC trading. '



# u 4. Delete paragraph C.6.b. and substitute the following therefor: During the non-ozone season: During the period from October 1 through April 30, inclusive, each year until 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 anon-ozone season emission limit of0.15 IblM1vlBtu. Prior to October 1, 2003, October 1, 2004, October 1, 2005, and October 1,2006, MPLLC shall estimate and acquire the amount of**non~ozone** season DERCs or allowances needed to comply with (Priotcd 00 Rccycled Pipc, ) 79 Elm Slrcct • Hiutord, 

### cr 06106·5127 btlp:lldcp.SlilC.CI.US An Equal Opponu"i,y EmployerMontville Power LLC 2 

### Trading Agreement and Order No. 8217A Modification No. I



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### 5.

6. Section 22a-174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in MMBtu from October I through 

### April 30 x Oower ofthe 

### estimated seasonal average NOx emission rate or the proportioned 24-hour allowable emission 

### limit in Ib/tv1MBru during October 1 through April 30

- (0.95 x 0.15IblMMBtu))] + 2000 pounds/ton. No later than May 31 of2004, 2005, 2006, and 2007, in addition to the DERCi retired pursuant to paragraph C.6.a. ofthis Trading Agreement and Order, MPLLC shall calculate and permanently retire DERCs used in the preceding nonozone season as follows: Actual DERCs (tons) 

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

### 30 x Oower ofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in IbIMMBtu during October 1 through April 30

- (0.95 x 0.15IblMMBtu))] + 2000 pounds/ton. Delete paragraph C.1O. 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 October through 

### April time 

### period only starting in 2003) ofevery year after issuance ofthis Trading Agreement and Order, MPLLC shall provide to the Cotrunissioner, a 

### record ofeach sale orother transfer, and use ofany and all 

### ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreementand Order until all such DERCs have been used or are no longer in :MPLLC's possession. :MPIlC shall also include actual NOx emissions from the boiler and 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 year and October.through April time period. These'reports shall be 

### on afonn prescribed by the Commissionerand shall 

### be in monthly 

### , increments, and by ozone and non-ozone seasons. Delete paragraph C.12. and substitute the following therefor: DERC Shortfall. At a minimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in MPLLC's possession for use prior to the first day of 

### each 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 adjusonent, based on the gravity ofany alleged noncompliance or violation oflaw. WIlC shall pennanently retire the quantity ofemissions caused by the exceedance plus a

### Montville Power 

### LLe 3 

### Trading Agreement and Order No. 8217A Modification No. I 100% premium within sixty (60) days ofMPLLC's discovery ofthe DERC shortfall. MPLLC shall cemfy and report any such DERC retirement to the 

### Commissionerin accordance with 

### paragraph C.31 ofthis Trading Agreement and Order. 7. Delete paragraph C.l4. and substitute the following therefor: Extension. No later than May I, 2007, with respect to the boiler, MPLLC shall comply with the requirements ofSections 22a-174-22(d)(I) and 22a-174- 22(d)(2)(A) ofthe Regulations. There is no assurance that after full program 

### review ofthis and otherTrading Agreements and Orders that the Commissioner 

### will 

### grant awritten extension ofthis Trading Agreement and Order.

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# '. 8. Delete paragraph C.IS. and substitute the following therefor: Future Compliance Report. On orbefore September 1,2006, MPLLC shall submit 

### areportin writing to 

### the Commissioner, as directed in paragraph C.32. 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.

{ 

### , 

# u All other terms 

### andconditions ofTrading Agreement and Orderno. 8217A issued by 

### the Commissioneracting under Chapter4460, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a

### 177 ofthe 

### ConnecticutGeneral Statutes shall remain in effect.

### Montville Power LLC 4 

### Trading Agreement ana Order No. 8217A Modification No.1 

### MPLLC hereby consents to the entry ofthis modification to the Trading Agreement and Order without further notice. Montville Power

### liC Signature: 

### Type Name: TypeTitle: Date:

r" -". 

# U Entered

### as amodificatIon of

### an Order ofthe**COmmissio~Environmental Pro~ection** 

# numb~red 8217A this 

## ;t.!IC. day of

# .~&1z004:') , I 

# I
Arthur I.

### ~Ocque, 

### Ir./' Commissioner J 

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