STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the maner of

The State of Connecticut and

United Technologies Corporation

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Trading Agreement

and Order No. 8248

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, Whereas, the Commissioner of Environmental 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 air quality within the State of

Connecticut and that the use of discrete 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 of P&W, the Commissioner finds the following:

1. P&W is a company that owns and operates a jet 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 on jet fuel and are subject to Section 22a-174-22 of the

Regulations of Connecticut State Agencies ("Regulations") pertaining to the

control of NOx emissions.

3. During the ozone seaso~, the boilers operate pursuant to the schedule

modification provisions in Consent Order No. 8098 and Section 22a-174-22(i)

of the 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 Emission Test FLER Allowable Emission Emission Test I Next Emission

Rate Limits Date Tesl Due

Boiler 5 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

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United Technologies Corporation Trading Agreement and

Order No. 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) of the

Regulations.

6. Pursuant to Section 22a-174-22(j) of the Regulations, during the non-ozone season,

P&W intends to ~c4uire approved NOx DERCs until May I, 2005 for the boilers at

the facility.

7. P&W, in accordance with the provisions of Section 22a-174-22 of the Regulations,

purchased the NOx DERCs previously approved by the Commissioner and

referenced in Table 2 of this Trading Agreement and Order. DERC creation serial

numbers assigned by the Department to these previously approved reductions of

NOx emissions are provided in Table 2 of this 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 of the vintage restrictions are provided in Table 2 of this Trading Agreement

and Order in the expiration date column.

Table 2

P&W

Previouslv approved (to th~ ~xt~nt not already 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 IN/A N/A CT01J8177(DC)Noxnoz(79· 122 12131106

201\

B. The Commissioner, in accordance with the provisions of this Trading Agreement and

Order, pursuant to Section 22a-174-22(d)(3) of the Regulations, hereby allows P&W to

comply with Section 22a-174-22(d)(2) of the Regulations through use of DERC trading.

C. With the agreement of P&W, the Commissioner, acting under Sections 22a-6, 22a171, 22a-174, 22a-176, and 22a·177 of the Connecticut General Statutes, hereby

orders P&W as follows:

1. Upon issuance of this Trading Agreement and Order, P&W shall comply with Section

22a·174-22 of the Regulations through emission reduction trading. Until P&W

achieves pennanent compliance with the emission standard in Section 22a-174-22(e) of

the Regulations or by May 1, 2005, whichever occurs earlier:

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United Technologies Corporation Trading Agreement and

Order No. 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 of each boiler with the FLERs shown in

Table 1 of this Trading Agreement and Order.

2. DERC use. Staning on October 1, 2003, and until May 1, 2005, before the first

day of each 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 of 0.15

IbslMMBtu. Prior to October I, 2003 and October I, 2004, P&W shall

estimate and acquire the amount of DERCs or allowances required for

such non-ozone season needed to comply with Section 22a-174-22(e)(3)

of the 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 of DERCs 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-l 74-22 of the Regulations.

4. Record Keeoing. P&W shall relain records and supporting documentation as described

in this Trading Agreement and Order for a minimum of five years, commencing on the

dale such records were created. P&W shall provide the records specified above to the

Commissioner within thiny (30) days of receipt of a written request from the

Commissioner.

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United Technologies Corporation Trading Agreement and

Order No. 8248

5. ReportinQ.. No later than July 30 of every year after issuance of this Trading Agreement

and Order, P&W shall submit in writing to the Commissioner the non·ozone season fuel

consumption and amount of all DERCs used (incluaing serial numbers (if assigned) and

approved DERCs purchased from other facilities) for each boiler during the previous

October through April time period. These reports shall be on a form prescribed by the

Conunissioner. . ! ,

6. Allowance Use. Pursuant to Section 22a·174·22(d)(3) of the Regulations, P&W may use

NOx allowances, pursuant to Section 22a·174-220) of the Regulations to achieve all or a

portion of the reductions required by Section 22a·174·22 of the Regulations. Any

allowance used for compliance with Section 22a.174.22(e) of the Regulations shall be

subject to all restrictions and/or requirements applicable to DERCs contained in this

Trading Agreement and Order. Each allowance used for compliance with Section 22a·

174·22 of the Regulations shall be equi valent to one discrete emission reduction credit

and shall be deducted from P&W's NOx Budget Program 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 overdraft

account to a State of Connecticut NOx 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 of each non·ozone

season. However, based on the gravity of the noncompliance, the Commissioner may

require additional upward adjustment.

8. Vintae:e Restriction. For the purposes of compliance with Section 22a·174·22 of the

Regulations, DERCs/allowances shall only remain valid for five (5) calendar years from

the year of the generation/allocation of such 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 of the Regulations. Notwithstanding the above the

DERCs/allowances generated/allocmed prior to calendar year 2000 shall be valid for use

until December 31, 2004.

9. FLER Exceedance. Noncompliance with an established FLER shall subject P&W to make

restitution by matching the quantity of emissions ("true up") caused by the exceedance

plus a 100% premium. The true up in tons of DERCs shall be equal to the FLER

exceedance in Ibsl1v1MBtu, multiplied by the total heat input during the period of

noncompliance divided by 2000 lbsJton. If the period of noncompliance is nOt known, the

time period from the completion of the 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

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United Technologies Corporation Trading Agreement and

Order No. 8248

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Commissioner's authority to institute any proceeding or take a.T'ly other action to require

additional upward adjustment, based on lhe gravity of any alleged noncompliance or

violation of law.

10. FLER Modification. FLERs set forth in Table 1 of this Trading Agreement and Order

may be modified only after the consent of the Commissioner by written modification of

this Trading Agreemen\ahd Order.

11.Emissions Testin2. Pursuant to Section 22a~ 174-22(k) of the Regulations, P&W shall

conduct NOx emission tests of the boilers at least once every fi ve years commencing from

the dates of the NOx emission tests for the boilers as provided in Table 1 of this Trading

Agreement and Order:

12.Extension. No later than May 1, 2005, with respect to the boilers, P&W shall comply with

the requirements of Subdivision 22a-174-22(d)(2) of the Regulations. However, after full

program review of this and other Trading Agreements and Orders and, if detennined to be

appropriate, the Commissioner may grant a written extension of this Trading Agreement

and Order.

13. Future ComDliance Repon. On or before September 1, 2004, P&W shall submit a repon

indicating how the facility shall comply with Section 22a-174-22 of the Regulations with

respect to the boilers on and after May I, 2005.

14. Full compliance. P&W shall not be 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 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 Order in a complete arid approvabJe fonn. If the

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,

if no time is specified by the Commissioner, within 30 days of the Commissioner's notice

of deficiencies. In approving any document or other action under this Trading Agreement

and Order, the Commissioner may approve the document or other action as submitted or

perfonned or with such conditions or modifications as the Commissioner deems necessary

to carry out the purposes of this 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 Commissioner has provided written authorization for use in compliance with

Section 22a·174-22 of the Regulations; "Commissioner" means the Commissioner or a

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United Technologies Corporation Trading Agreement and

Order No. 8248

representative of the Conmtissioner; "Non-Ozone season" means the period from October

1 through April 30 in any given calendar year. The date of "issuance" of this Trading

Agreement and Order is the date the Trading Agreement and Order is deposited in the U.S.

mail or personally delivered, whichever is earlier.

17. Dates. The date of submission to the Commissioner of any document required by this

Trading Agreement and Order shall be the date such document is received by the

Commissioner. The date of any notice by the Commissioner under this Trading

Agreement and Order, including but not limited to notice of approval or disapproval of any

document or other action, shall be the date such notice is deposited in the U.S. mail Or is

personally delivered, whichever is earlier. Except as otherwise specified in this Trading

Agreement and Order, the word "day" as used in this Trading Agreement and Order means

calendar day. Any document or action which is required by this Trading Agreement and

Order to be submitted or performed by a date which falls on a Saturday, Sunday or a

Connecticut or federal holiday shall be submitted or performed by the next day which is

not a Saturday, Sunday or Connecticut or federal holiday.

18. Certification of documents. Any document, including but not limited to any notice, which

is required to be submitted to the Commissioner under this Trading Agreement and Order

shall be signed by P&W or, if P&W is not an individual, by an individual who is an

authorized representative of P&W, in accordance with Section 22a·174-2a(a) of the

Regulations of Connecticut 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 of those individuals responsible for

obtaining the infonuation, that the submitted information is true, accurate and

complete to the best of my knowledge and belief. I understand that any false

statement ruadt in tIle suLmillt:u infunn<:tliun is punish<:tble as a criminal offense

under Section 53a-157b of the Connecticut General Statutes and any other

applicable law."

19. Noncomoliance. This Trading Agreement and Order is a final order of the Commissioner

with respect (Q the matters addressed herein, and is nonappealable and immediately

enforceable. Failure to comply with this Trading Agreement and Order may subject P&W

to an injunction and penalties.

20. False statementS. Any false statement in any infonnation submitted pursuant to this

Trading Agreement and Order is punishable as a criminal offense under Section 53a-157b

of the Connecticut General Statutes and any other applicable law.

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United Technologies Corporation Trading Agreement and

Order No. 8248

21. Notice of transfer: liabilitv of P&W. Until P&W has fully complied with this Trading

Agreement and Order, P&W shall notify the Commissioner in writing no lClter rnan 15

days after transferring all or any portion of the facility, rhe operations, the site or the

business which is the subject of this Trading Agreement and Order or afrer obtaining a

new mailing or location address. P&W's obligations under this Trading Agreement and

Order shall nor be affected by the passage of title to any property to any other person or

municipality. "

22. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the

Commissioner's authority to institute Clny proceeding or take any other action to prevent or

abme violations of law, prevent or abate pollution, recover costs and natural resource

damages, and [Q impose penalties for past, present, or future violations of law. If at any

time the Commissioner determines that the actions taken by P&W pursuant [Q this Trading

Agreement and Order have not successfully corrected all violations, fully characterized the

extent or degree of any pollution, or successfully abated or prevented pollution, the

Commissioner may institute any proceeding to require P&W to undertake further

investigation or further action to prevent or abate violations or pollution.

.. 23. P&W's obligations under law. Nothing in this Trading Agreement and Order shall relieve

P&W of other obligations under applicable federal, state and local law.

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24.

26.

27.

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No assurance bv Commissioner. No provision of this Trading Agreement and Order and

no action or inaction by the Commissioner shall be construed to constitute an assurance by

the Commissioner that the actions taken by P&W pursuant to this Trading Agreement and

Order will result in compliance or prevent or abate pollution.

Access to facilitv. Any representative of the Department of Environmental Protection may

enter the facility without prior notice for the purposes of monitoring and enforcing the

actions required or allowed by this Trading Agreement and Order.

No effect on rights of mher persons. This Trading Agreement and Order neither creates

nor affects any rights of persons or municipalities that are not parties to this Trading

Agreement and Order.

No Creation of PropeI1v Ri2hts. This Trading Agreement and Order does not create any

property rights with respect to these DERCs.

Notice to Commissioner of chanQ:es. Within 15 days of the date P&W becomes aware of a

change in any information submitted to the Commissioner under this Trading Agreement

and Order, or that any such information was inaccurate or misleading or that any relevant

7
Umted 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 of noncompliance. 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 of this

Trading Agreement and Order or 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 extent possible. Within five (5) days of the

initial notice, P&W shall submit in writing the date, time, and duration of the

noncompliance and the reasons for the non~ompliance or delay and propose, for the

review and written approval of the 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 of any compliance dates proposed shall not excuse

noncompliance or delay unless specifically so stated by the Commissioner in writing.

30. Submission of documents. Any document required [Q be submitted to the Commissioner

under this Trading Agreement and Order shall, unless otherwise specified in this Trading

Agreement and Order or in writing by the Commissioner, be directed to:

Ms. Wendy Jacobs

Department of Environmental Protection

Bureau of Air Management

_______.l:E.nm:nissions and Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127

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United Technologies Corporation Trading Agreement and

Order No. 8248

P&W consentS to the issuance of this 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 bind P&W to the (enns and conditions of the Trading Agreement and Order.

United Technologies Corporation

I

Signatur~ z:::::;-~

Name: L"r'" s,J«II

Title:

TOWN OF EAST HARTFORD LAND RECORDS

<Jr"

(' .~

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Date: / J, IiJ« ,""3

Issued as a final order of the COmmIssioner of Environmental pro~, " __',

on __Ll- I~ ,2003 / r" ./ ) T I ",x""" •

k'?\h ...--/Arumr 1. Rocque, Jr. "-

Commissioner J

I "

V

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQ1,jESTED

Cenified Document No.

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