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 IClient 7741 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 of the Regulations of

Connecticut State Allcncies.

Nonattainment Area Classification Severe

Annual DERCs needed Estimated 50 non-ozone

Annual DERCs 2cnerated Estimated 40 ozone (BDERCs

Compliance Time Period Until Anri130, 2007.

Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and

Use. (See Table I below):

Table 1

NOx Emission Rates and Allowable Limits

Unit Fuel Maximum Stack Test 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 Order Modification supersedes Trading Agreement and

Order No. 8217A issued on April 30, 2003.

b. Calculations of credits 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 of generating DERCs from the boiler at the facility, Montville Power LLC

shall use 0.15 Ibs/MMBtu of heat 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

of all DERCs (tons) generated by the boiler shall be retired by the facility and

pennanently removed from all calculations on a nOll-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

!~~ ©l~ 0\!/ !~ir,ll 'I

:.~'. "I r:- __ , ~-'""\ [I.Ii , " .·oJ I ' ,. "

iUU "-' ' - '--"' L 1 TRADING AGREEMENT AND ,

[8y ORDER NO. 8217A

MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICATION

In the matter of aTrading Agreement and Order between the Commissioner of Environmental

Protection ("Commissioner") and Montville Power LLC ("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) of the Regulations, MPLLC intends both to

acquire and generate approved DERCs until May 1, 2007 for boiler 6 at the

facility. Approved DERCs are defined for purposes of this Trading Agreement

and Order as those for which the Conunissioner has provided written authority for

use in compliance with Section 22a~174-22 of the Regulations.

3. Delete paragraph B.lo and substitute the following therefor:

Comply with Section 22a-I74-22(d)(I) of the Regulations through use of Budget

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 of Section 22a-174~22 of the Regulations, meet a non-ozone season

emission limit of 0.15 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 Pi pc, )

79 Elm Slrcct • Hiutord, cr 06106·5127

btlp:lld cp.SlilC.CI.US

An Equal Opponu"i,y Employer
Montville Power LLC 2 Trading Agreement and Order

No. 8217A Modification No. I

:).~

, ' , 1

\..../

5.

6.

Section 22a-174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) = [Estimated fuel use in MMBtu from October I through

April 30 x Oower of the 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 of 2004, 2005, 2006, and 2007, in addition to the DERCi

retired pursuant to paragraph C.6.a. of this 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 of the actual seasonal average NOx emission rate or the 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) of every year after issuance of this

Trading Agreement and Order, MPLLC shall provide to the Cotrunissioner, a

record of each sale or other transfer, and use of any and all of the DERCs

approved within and subsequent to issuance of this Trading Agreement and 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

of all DERCs used (including serial numbers (if assigned) and approved DERCs

generated and/or purchased from other facilities), generated and/or approved for

the previous calendar year and October. through April time period. These'reports

shall be on a fonn prescribed by the Commissioner and 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% if DERCs 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 Order shall affect the Commissioner's authority to institute any proceeding or

take any other action to require additional upward adjusonent, based on the

gravity of any alleged noncompliance or violation of law. WIlC shall

pennanently retire the quantity of emissions 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 of MPLLC's discovery of the DERC

shortfall. MPLLC shall cemfy and report any such DERC retirement to the

Commissioner in accordance with paragraph C.31 of this 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 of Sections 22a-174-22(d)(I) and 22a-174-

22(d)(2)(A) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the Commissioner

will grant a written extension of this Trading Agreement and Order.

r- (..J

'.

8. Delete paragraph C.IS. and substitute the following therefor:

Future Compliance Report. On or before September 1,2006, MPLLC shall submit

a report in writing to the Commissioner, as directed in paragraph C.32. of this

Trading Agreement and Order, indicating how the facility shall comply with

section 22a-174-22 of the Regulations with respect to the boiler on and after May

1,2007.

{ ,

u

All other terms and conditions of Trading Agreement and Order no. 8217A issued by the

Commissioner acting under Chapter 4460, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 of the Connecticut General Statutes shall remain in effect.
Montville Power LLC 4 Trading Agreement ana Order

No. 8217A Modification No.1

MPLLC hereby consents to the entry of this modification to the Trading Agreement and Order

without further notice.

Montville Power liC

Signature:

Type Name:

Type Title:

Date:

r" -".

U

Entered as a modificatIon of an Order of the COmmissio~Environmental Pro~ection

numb~red 8217A this ;t.!IC. day of .~&1z004:')

, I

I

Arthur I. ~Ocque, Ir./'

Commissioner J

\.-/

MAILED CERTIFIED MAll.,

RETURN RECEIPT REQUESTED

Certified Document No.