# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the manerof The State ofConnecticut and United Technologies Corporation ) ) ) ) ) Trading Agreement and Order No. 8248



# --. , Whereas, the Commissioner ofEnvironmental Protection ("Commissioner") and United Technologies Corporation, through its Pratt 

### & Whitney,Division ("P&W") .agree that 

### it is in the public interest that they work cooperatively to improve the airquality within the State of Connecticut and that the use ofdiscrete emission reduction credit 

### C"DERC") trading to reduce nitrogen oxide C"NOx") emissions 

### will achieve this result in a timely and cost· effective manner. A. At the request and with the agreement ofP&W, the Commissionerfinds the following: 1. P&W is acompany that owns and operates ajet engine research facility at Pent Road, East Hartford, Connecticut ("facility"). 2. At the facility, P&W operates fuel burning equipment, among which are two registered B&W boilers,S and 6 (R167 and R168 respectively) ("boilers"). The boilers operate onjet fuel and are subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNOx emissions. 3. During the ozone**seaso~,** the boilers operate pursuant to the schedule modification provisions in Consent OrderNo. 8098 and Section 22a-174-22(i) ofthe Regulations. 4. Emissions testing resulted in NOx emission rates for boilers 5 and 6 in pounds pcr million British thcrmal units ("lbs/MMDtu") as follows: Table 1

P&W 

### Emission Test Results, Non-Ozone Season AlJowabJe Emission Limits and FLERs* in IbsIMMBtu Unit 

# I Fuel 

# I EmissionTest FLER AllowableEmission Emission Test 

# I NextEmission Rate Limits Date Tesl Due Boiler5 Jet 

# I 0.25 0.31 0.15 3122/99 

# I 3/22/04 fuel Boiler 6 Jet 

# I 0.28 0.35 

# I 0.15 

# I 3123/99 

# I 3123/04 fuel *where FLER means full load emission rate (Pritllcd on Rccycled Paper) 79 Elm Street •**H~nford.** CT 0611.i6· SJ2i**b!\p:lldep.l1~\~** .CI.US An Equal Opporlliltiry £"'/1'''.'0 

## iJi**~I~brwint** ConnfcricufC/XUIOI**R~sQurcc** Manalfmfnl: 19110
- J()OfJ

## tt::tJUnited Technologies Corporation Trading Agreement and OrderNo. 8248

5. During the non-ozone season, when operating these boilers, P&W exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e)(3) ofthe Regulations. 6. Pursuant to Section 22a-174-22(j) ofthe Regulations, during the non-ozone season, P&W intends to

### ~c4uire approvedNOx DERCs until May I, 2005 for the boilers at the facility. 7. P&W, in accordance with the provisions ofSection 22a-174-22 ofthe Regulations, purchased the NOx DERCs previously approved by the Commissioner and referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers assigned by the Departmentto these previously approved reductions of NOx emissions are provided in Table 2 ofthis Trading Agreement and Order. Unused DERCs are subject to the vintage restrictions in this Trading Agreement and Order. Dates after which the unused DERCs 

### will no longer be eligible for use as a result ofthe vintage restrictions are provided in Table 2 ofthis Trading Agreement and Orderin the expiration date column.
Table 2 P&W Previouslv approved (to**th~ ~xt~nt**  notalready u.sed) NO:.: DEnCs Year of Ozone Season NOx DERC Ozone Non-ozone season NOx DERC 

# INon- Expiration Genenuion serial numbers Season serial numbers ozone Date DERCs season DERCs Pre-1999 Serial number not assigned 46 Serial number not assigned 30 12/31/04 (United Illuminatin<; ,generated) (United Illuminatin2 2enerated) 2001 

# I N/A N/A CT01J8177(DC)Noxnoz(79· 122 12131106 201\ B. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuantto Section 22a-174-22(d)(3) ofthe Regulations, hereby allows P&W to comply with Section 22a-174-22(d)(2) ofthe Regulations through use ofDERC trading. C. With the agreement ofP&W, the Commissioner, acting under Sections 22a-6, 22a171, 22a-174, 22a-176, and 22a·177 ofthe Connecticut General Statutes, hereby orders P&W as follows: 1. Upon issuance ofthis Trading Agreement and Order, P&W shall comply with Section 22a·174-22 ofthe Regulations through emission reduction trading. Until P&W achieves pennanentcompliance with the emission standard in Section 22a-174-22(e) of the Regulations orby May 1, 2005, whichever occurs earlier:

2United Technologies Corporation Trading Agreement and OrderNo. 8248

a. P&W shall use approved DERCs as required under this Trading Agreement and Order; b. P&W shall have in its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order; and

c. P&W shall**co~pjy** during operati.on ofeach boiler with the FLERs shown in Table 1 ofthis Trading Agreement and Order. 2. DERC use. Staning on October 1, 2003, and until May 1, 2005, before the first day ofeach non-Olone season, P&W shall have in its possession sufficient approved DERCs for the boilers based on the following: Durin2 the non-Olone season: P&W shall meet a non-ozone seasonal average emission limit of0.15 IbslMMBtu. Prior to October I, 2003 and October I, 2004, P&W 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: Estimated DERCs (tons)::;: [Estimated fuel use in :M:MBru from October 1 through April 30 x «(FLER)

- (0.95 x 0.15 IbslMMBtu))]

2000 pounds/ton. No later than May 31, 2004, and May I, 2005, P&W shall calculate and permanently retire DJ?RCs used in the preceding non-ozone season as follows: Actual DERCs (tons)::;: [Actual fuel use in:tvf11Btu from October 1 through April 30 x «(FLER)

- (0.95 x 0.15IbsIMMBtu»)J.,. 2000 pounds/ton. 3. P&W shall make and keep records for the boilers of: non-ozone season fuel use; FLERs; the number ofDERCs in its possession, purchased and used (by serial number if assigned) each non-Olone season in accordance with the appropriate emission rates and limits in this Trading Agreement and Order. P&W shall maintain and submit such records in accordance with Section 22a-l74-22 ofthe Regulations. 4. Record Keeoing. P&W shall relain records and supporting documentation as described in this Trading Agreement and Orderfor aminimum offive years, commencing on the dale such records were created. P&W shall providethe records specified above to the Commissioner within thiny (30) days ofreceipt ofa written request from the Commissioner. 3United Technologies Corporation Trading Agreement and 

### Order No. 8248

5. ReportinQ.. No laterthan July 30 ofevery year after issuance ofthis Trading Agreement and Order, P&W shall submit in writing to the Commissioner the non·ozone season fuel consumption and amount ofall DERCs used (incluaing serial numbers (ifassigned) and approved DERCs purchased from otherfacilities) for each boilerduring the previous Octoberthrough April time period. These reports shall be on a form prescribedby the Conunissioner.

. ! 

### , 6. Allowance Use. Pursuant to Section 22a·174·22(d)(3) ofthe Regulations, P&W may use NOx allowances, pursuant to Section 22a·174-220) ofthe Regulations to achieve all or a portion 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 and/orrequirements applicable to DERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a· 174·22 ofthe Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from P&W's NOx BudgetProgram compliance account upon such use. Allowances shall be considered used for compliance with Section 22a·174·22 ofthe Regulations when they are transferred from the facility's compliance account or overdraft account to a State ofConnecticutNOx allowance retirement account, account ID CT0000000300 in the NOx Allowance Tracking System. 7. DERC DoublinQ.. At a minimum, DERCs required shall be adjusted upwards by 100% if DERCs are not in P&W's possession for use prior to the.first day ofeach non·ozone season. However, based on the gravity ofthe noncompliance, the Commissionermay require additional upward adjustment. 8. Vintae:e 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 DERCs/allowances. DERCs/allowances 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/allocmed priorto calendar year 2000 shall be valid for use until December 31, 2004. 9. FLERExceedance. Noncompliance with an establishedFLER shall subject P&W to make restitution by matching the quantity ofemissions ("true up") caused by the exceedance 

### plus a 100% premium. The true up in tons ofDERCs shall be equal to the FLER exceedance in Ibsl1v1MBtu, multiplied by the total heat input during the period of noncompliance divided by 2000 lbsJton. 

### Ifthe period ofnoncompliance is nOt known, the time period from the completion ofthe last/previous Department witnessed emission test through the date the FLER compliance is achieved as approved by the Commissioner shall be used. However, nothing in this Trading Agreement and Order shall affect the 4. , 

## .. United Technologies Corporation Trading Agreement and Order No. 8248



# I: '.,;;:. Commissioner's authority to institute any proceeding or take a.T'ly other action to require additional upward adjustment, based on lhe gravity ofany alleged noncompliance or violation oflaw. 10. FLER Modification. FLERs set forth in Table 1 ofthis Trading Agreement and Order may be modified only after the consent ofthe Commissionerby written modification of this Trading Agreemen\ahd Order. 11.Emissions Testin2. Pursuant to Section**22a~** 174-22(k) ofthe Regulations, P&W shall conduct NOx emission tests ofthe boilers at least once every five years commencing from the dates ofthe NOx emission tests for the boilers as provided in Table 1 ofthis Trading Agreement and Order: 12.Extension. No later than May 1, 2005, with respect to the boilers, P&W shall comply with the requirements ofSubdivision 22a-174-22(d)(2) ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetennined to be appropriate, the Commissionermay grant a written extension ofthis Trading Agreement and Order. 13. Future ComDliance Repon. On orbefore September 1, 2004, P&W shall submit arepon indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boilers on and afterMay I, 2005. 14. Full compliance. P&W shall not be considered in full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Orderhave been completed as approved an9- to the Commissioner's satisfaction. 15. Approvals. P&W shall use best effons to submit to the Commissioner all documents required by this Trading Agreement and Orderin acomplete arid approvabJe fonn. Ifthe Commissioner notifies P&W that any document or other action is deficient, and does not approve it wilh conditions or modifications, it is deemed disapproved, and P&W shall correct the deficiencies and resubmit 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 or other action under this Trading Agreement and Order, the Commissionermay approve the document or other action as submitted or perfonned or with such conditions ormodifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay. 16. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are those for which the Commissionerhas provided written authorization for use in compliance with Section 22a·174-22 ofthe Regulations; "Commissioner" means the Commissioneror a 5United Technologies Corporation Trading Agreement and OrderNo. 8248 representative ofthe Conmtissioner; "Non-Ozone season" means the period from October 1 through April 30 in any given calendaryear. The date of"issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. 17. Dates. The date ofsubmission to the Commissioner ofany documentrequired by this TradingAgreement and Ordershall 

### be the date such document isreceived by the Commissioner. The date ofany notice by the Commissionerunder this Trading Agreement and Order, including but not limited to notice ofapproval or disapproval ofany document orother action, shall be the date such notice is deposited in the U.S. mail Oris personally delivered, whicheveris earlier. Except as otherwise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendar day. Any document or action which is required 

### by this Trading Agreement and Order to be submitted orperformed by adate 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 or Connecticut orfederal holiday. 18. Certification ofdocuments. Any document, including but not limited to any notice, which is required to 

### be submitted to the Commissionerunder this Trading Agreement and Order shall 

### be signed by P&W or, ifP&W is not an individual, by an individual who is an authorized representative ofP&W, in accordance with Section 22a·174-2a(a) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actually preparing such document, and each such individual shall certify in writing as follows: "I have personally examined and am familiar with the infonnation submitted in this document and 

### ali attachments thereto, and I certify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the infonuation, that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. I understand that any false statementruadt in tIle suLmillt:u infunn<:tliun is punish<:tble as acriminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law." 19. Noncomoliance. This Trading Agreement and Orderis afinal orderofthe Commissioner with respect (Q the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Ordermay subjectP&W to an injunction and penalties. 20. False statementS. Any false statementin any infonnation submitted pursuant to this Trading Agreement and Orderis punishable as a criminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law. 6United Technologies Corporation Trading Agreement and Order No. 8248

21. Notice oftransfer: liabilitv ofP&W. Until P&W has fully complied with this Trading Agreement and Order, P&W shall notify the Commissionerin writing no lClter rnan 15 days after transferring all or any portion ofthe facility, rhe operations, the site orthe business which is the subject ofthis Trading Agreement and Order or afrer obtaining a new mailing orlocation address. P&W's obligations under this Trading Agreement and Ordershall nor be affected by the passage oftitle to any property to any otherperson or municipality. " 22. Commissioner's powers. Nothing in this Trading Agreement and Ordershall affect the Commissioner's authority to institute Clny proceeding ortake any other action to prevent or abme violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and [Q impose penalties for past, present, orfuture violations oflaw. Ifat any time the Commissionerdetermines that the actions taken by P&W pursuant [Q this Trading Agreement and Orderhave not successfullycorrected all violations, fully characterized the extent or degree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require P&W to undertake further investigation orfurther action to prevent or abate violations orpollution

.

.. 23. P&W's obligations under law. Nothing in this Trading Agreement and Order shall relieve P&W ofother obligations under applicable federal, state and local law.

i 

### '-...> 24.



### 26.

27.

28 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 Commissionerthat the actions taken by P&W pursuant to this Trading Agreement and Order will result in compliance orprevent or abate pollution. Access to facilitv. Any representative ofthe Department ofEnvironmental Protection may enterthe facility without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order. No effect on rights ofmher persons. This Trading Agreement and Order neither creates nor affects anyrights ofpersons ormunicipalities that are not parties to this Trading Agreement and Order. No Creation ofPropeI1v Ri2hts. This Trading Agreement and Order does not create any property rights with respect to these DERCs. Notice to Commissioner ofchanQ:es. Within 15 days ofthe date P&W becomes aware ofa change in any information submitted to the Commissionerunder this Trading Agreement and Order, orthat any such information was inaccurate or misleading orthat any relevant

7Umted Technologies Corporation Trading Agreement and Order No. 8248



# A')**<-~.;** infonnation was omitted, P&W shall submit the correct or.omitted infonnation to the Commissioner. 29. Notification ofnoncompliance. In the event that P&W becomes aware that it did not or may not comply, or did not or mllY not comply on time, with any requirement ofthis Trading Agreement and Orderor of.any document required hereunder, P&W shall immediately notify by telephone the individual identified in the next paragraph and shall 

# , take all reasonable steps to ensure that any noncompliance or delay is avoided or, if unavoidable, is minimized to the greatest extentpossible. Within five (5) days ofthe initial notice, P&W shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the**non~ompliance** or delay and propose, for the review and written approval ofthe Commi.ssioner, dates by which compliance will be achieved, and P&W shall comply with any dates which may be approved in writing by the Commissioner. Notification by P&W shaH not excuse noncompliance or delay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated 

### by the Commissionerin writing. 30. Submission ofdocuments. Any document required [Q be submitted to the Commissioner under this Trading Agreement and Ordershall, unless otherwise specified in this Trading Agreement and Order orin writing by the Commissioner, be directed to: Ms. Wendy Jacobs Department ofEnvironmental Protection Bureau ofAirManagement

_______.l:E.nm:nissions and Credit Trading Section 79 Elm Street Hartford, Connecticut 06106-5127

8

### United Technologies Corporation Trading Agreement and 

### OrderNo. 8248



### P&W consentS to the issuance ofthis Trading Agreement and Order without funher notice. The undersigned cenifies 

### that he/she is fully authorized to enter into this Trading Agreement and Order 

### and to 

### legally bindP&W to 

### the (enns and conditions ofthe Trading Agreement and Order. United Technologies Corporation I

## Signatur~**z:::::;-~** Name: 

# L"r'" s,J«

# II Title:

TOWN OFEASTHARTFORD LAND RECORDS 

# r" <J

('**.~** 

## "-- Date: /J, 

### Ii 

## J« ,

## ""3

Issued as a final orderofthe COmmIssionerof Environmental

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## Jr. "- Commissioner 

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MAILED CERTIFIED MAIL, RETURN RECEIPT REQ1,jESTED 

### Cenified DocumentNo.

9