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Newington Energy, LLC ] FINAL RACT ORDER Newington Power Facility ] ARD-04-001 200 Shattuck Way, Newington, NH ] June 20, 2007 _____________________________________________ ]

A. Introduction

This NOx RACT Order is issued by the New Hampshire Department of Environmental Services, Air Resources Division, to Newington Energy, LLC pursua nt to RSA 125-C.

B. Parties

1. The New Hampshire Department of Environmental Servi ces, Air Resources Division ("DES"), is a duly constituted administrative agency of the State of New Hampshire having its principal offices at 29 Hazen Drive, Concord, NH 03302-0095, telephone n umber (603) 271-1370.

2. Newington Energy, LLC (NEL) is a Delaware Limited L iability Corporation, having a mailing address of 15 Agawam Avenue, West Springfield, MA.

C. Statements of Fact and Law

1. NEL operates the Newington Power Facility located a t 200 Shattuck Way in Newington, NH.

2. NEL is a 525 megawatt combined cycle electric gener ation facility, which is fully permitted to operate as such by DES.

3. On December 4, 2001, NEL was issued a Temporary Air Permit for One Natural Gas-Fired Auxiliary Boiler, Eight Natural Gas-Fired Fuel Gas Heaters, O ne Diesel-Fired Emergency Generator, and One Diesel-Fired Firewater Pump, State Permit No. TP-B- 0483.

4. Effective May 20, 1994, DES adopted PART Env-A 1211 NITROGEN OXIDES (NOx). Effective October 31, 2002, DES revised and adopted Env-A 121 1.

5. In compliance with Condition V.B of Temporary Permi t No. TP-B-0483, a NOx Reasonably Available Control Technology Plan (“NOx RACT Plan”) was required for the eight fuel gas heaters, rated at 2.0 MMBtu/hr each. NEL, through its consu ltant TRC Environmental Corporation, filed a “NOx RACT Plan for Fuel Gas Heaters,” dated April 2 3, 2002. The NOx RACT Plan was filed in compliance with the requirements of Env-A 1211.14, Emission Standards and Control Options for Miscellaneous Stationary Sources.

6. On September 9, 2002, DES issued RACT Order # ARD-0 2-003 to NEL for the eight fuel gas heaters. The RACT Order required NEL to install an d operate low NOx burners and comply with NOx emission limits of 12 ppm and 0.018 lb/MMBtu fo r each of the eight fuel gas heaters.

7. On September 9, 2002, DES submitted to United State s Environmental Protection Agency (USEPA)

NOx RACT Order # ARD-02-003 as a revision to the Ne w Hampshire State Implementation planNewington Energy, LLC June 20, 2007

ARD-04-001 Page 2 of 3

(SIP).

8. NEL’s current NOx emitting sources include two comb ustion turbines and their associated heat recovery steam generators with duct burners, an aux iliary boiler, a firewater pump, an emergency generator, and eight fuel gas heaters.

9. On July 26, 2004, NEL, through its consultant Earth Tech Corporation, submitted a revised NOx RACT Plan for new fuel gas heaters. The revised pl an proposes replacing the eight fuel gas heaters (rated at 2.0 MMBtu/hr each) with six fuel gas heat ers, rated at 2.4 MMBtu/hr each. This reduces the total heat input rate of the fuel gas heaters from 16 MMBtu/hr to 14.4 MMBtu/hr. The vendor NOx emission guarantee on the Low NOx burners is 9.9 pp m at 3% O 2 . NEL estimates that the emission factor will be approximately 0.0120 lb NOx/MMBtu or 0.0289 lb NOx/hr for each fuel gas heater. This equates to a potential reduction of 0.51 tons NOx per year when compared to NOx emissions from the current fuel gas heaters.

10. NEL analyzed alternative methods for lowering NOx e missions including the following: 1) the use of low sulfur distillate fuel oil; 2) NOx emission red uction credits (ERCs) or discrete emission reductions (DERs); and low NOx burners. The use of low sulfur distillate fuel oil would increase the NOx emissions by approximately a factor of eight ov er the use of the vendor supplied NOx emissions for natural gas firing; therefore, NEL did not choo se this option. As the NOx emissions from all eigh t burners are 0.76 tons per year, NEL dismissed the u se of DERs or ERCs because of the high administrative costs of a low quantity of credits. NEL chose to use low NOx burners to meet the NOx RACT requirements.

11. NEL also reviewed the US EPA RACT/Best Available Co ntrol Technology/Lowest Achievable Emission Rate (BACT/LAER) Information System cleari nghouse to search for other for natural gasfired combustion devices with low NOx emissions. N EL searched the database for comparably sized units (up to ten times larger in heat input) that w ere installed since the original RACT Order was issued on September 9, 2002. No permits of compara bly-sized units were found with lower NOx

emissions.

12. When DES submits RACT Order # ARD-04-001 to EPA as a SIP revision, the new RACT Order will supersede the NOx RACT Order ARD-02-003 and DES wil l request for the withdrawl of the September 9, 2002 submittal.

D. Order

Based upon the above findings and determinations, D ES hereby orders NEL as follows:

1. Install and operate low NOx burners on each of the six new fuel gas heaters.

2. Comply with a NOx emission concentration of 9.9 ppm @3%O 2 and a 0.012 lb/MMBtu emission rate for each of the six new fuel gas heaters.

3. Perform annual efficiency tests to determine the co mbustion efficiency (percent), the NOx emission concentration (ppmvd), CO concentration (ppmvd), ox ygen levels (percent), and carbon dioxide levels (percent).Newington Energy, LLC June 20, 2007

ARD-04-001 Page 3 of 3

4. Maintain records of the combined monthly fuel consu mption of the six fuel gas heaters.

5. Maintain records of the hours of operation, based o n the fuel flow data, when any of the six fuel gas heaters are operating.

6. Comply with the record keeping and reporting requir ements of the New Hampshire Code of Administrative Rules, Chapter Env-A 900.

Please address any correspondence and communication in reference to this Order to the following:

Ms. Padmaja Baru NHDES, Air Resources Division Stationary Source Management Bureau

29 Hazen Drive

P.O. Box 95 Concord, NH 03302-0095 (603) 271-2630

____________________________________ Robert R. Scott, Director Department of Environmental Services

Air Resources Division

cc: Timothy Drew, PIP Office David Conroy, US EPA Alan Douglass, CED Town Selectmen, Newington

RRS/pb