STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT )

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AND )

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HAMILTON SUNDSTRAND CORPORATION )

TRADING AGREEMENT AND ORDER NO. 8109

MODIFICATION No. I

In the matter of a Trading Agreement and Order between the Commissioner of Environmental Protection

("Commissioner") and Hamilton Sundstrand Corporation ("HSC").

WHEREAS, the Commissioner and HSC, having agreed to the terms and conditions set forth in Trading

Agreement and Order No. 8109 signed by the Commissioner on April 29, 2003, do now, by mutual agreement,

modify said Trading Agreement and Order as follows:

1. Delete paragraph A.3. and substitute the following therefor:

U.S. Environmental Protection Agency ("EPA") Method 7E emission tests performed on the dates

shown in Table 1 resulted in NOx emissions rates as follows:

Table 1

HSC - NO. EMISSION TEST RATES AND LIMITS (lbs/MMBtu)

Boilers in Building # ]

Boiler Fuel Heat input Test rate Test rate Test rate FLERs NO. Date

MMBtu/br 5/95 5/99 2104 Limit Rate Next Test

(5/00) Due

Boiler #1 #6 oil 61 0.38 0.25 0.294 033 0.25 2/26/09

(Riley) Nat. Gas 0.26 0.12 0.175 N/A 0.20 2/24/09

Boiler #2 #6 oil 61 0.36 0.24 0.263 0.29 0.25 2/25/09

(Riley) Na\. Gas 0.27 0.08 0.160 N/A 020 2/24/09

Boiler #3 #6 oil 61 0.40 0.25 0.294 0.33 0.25 2/26/09

(Riley) Nat. Gas N/A 0.13 0.149 N/A 020 2/24/09

Boiler #4 #6 oil 73 0.44 (0.374) N/A NlA 0.25 Shut down

(CE)

Boilers in Building # 3

Boiler Fuel Heat input Test rate Test rate Test rate FLER NO. Date

MMBtu/br 5/95 1/99 12103 Limit Rate Next Test

(5/00) Due

Boiler #1 #4 oil 0.29 Ceased N/A 0.29 0.25 N/A

(CS) #2 Oil 20.9 N/A 0.171 0.192 N/A 0.20 1/9/09

Na\. Gas 0.08 (0.111) 0.114 N/A 0.20 12118/08

Soiler#2 #4 oil 0.27 Ceased N/A 0.27 0.25 N/A

(CS) #2 Oil 20.9 N/A 0.189 0.174 N/A 0.20 1/9/09

Nat. Gas 0.07 (0.102) 0.099 N/A 0.20 12/18/08

( Printed on Recycled Paper)

79 Elm Street • Hartford. CT 06106 - 5127

An Equal Opportunity Employer
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Hamilton Sundstrand Corporation 2 Trading Agreement and Order No. 8109

Modification No. I

2. Delete paragraph A.7. and substitute the following therefor:

a. DEP witnessed emissions testing conducted April 1999 and May 2000, as indicated in Table I of

this Trading Agreement and Order, showed that the NOx emissions rates from the boilers were

reduced below the allowable NOx emission limits set forth in Section 22a-174-22 (e) ofthe

Regulations.

b. DEP witnessed emissions testing conducted February 2004, as indicated in Table I ofthis

Trading Agreement and Order, showed that the NOx emissions rates from the boilers exceeded

the allowable NOx emission limits set forth in Section 22a-174-22 (e) ofthe Regulations.

c. On June 30, 2004 HSC retired 22 DERCs to offset excess emissions from the boilers during the

time period ofApril 1999 through February 2004. Included in the amount retired is an additional

100% (11 DERCs).

3. Change the term boiler 4 in paragraph A.8. to: the boilers.

4. Delete paragraph A.9. and substitute the following therefor:

HSC proposes to use the full load emission rates ("FLERs") in Table I, when burning No.6 fuel oil,

for the purposes of calculating DERCs required for the boilers.

5. Attachment 2 ofTrading Agreement and Order 8109 is deleted in its entirety and the appended

Attachment 2 is substituted in lieu therefor.

6. Delete paragraph A.12. and substitute the following therefor:

As documented in Attachment 2, incorporated herein by reference in this Trading Agreement and

Order, and shown in Table 3, since the installation oflow NOx burners in the boilers, HSC has

generated 16.5 tons ofNOx DERCs (7.6 ozone and 8.9 non-ozone). Twenty percent ofthese DERCs

(1.5 tons ozone and 1.8 non-ozone have been permanently retired to benefit the environment. The

total DERCs available for use after the environmental discount and rounding down to the nearest

whole ton for annual serial number assignment is 8 tons (3 ozone and 5 non-ozone season).

7. Delete paragraph A. 13. and substitute the following therefor.

Reserved
Hamilton Sundstrand Comoration 3 Trading Agreement and Order No. 8109

Modification No.1

8. Delete Table 3 and substitute the following therefor:

Table 3

Approved DERCs Generated from 1999 through 2003

(After roundine down to the nearest whole ton)

Year of Ozone season Tons Non-ozone season Tons Expiration

generation Date

1999 CT99/81 09(DC)NOxoz( I) 1 CT99/81 09lDC1NOxnozlI) 1 12/31/04

2000 CTOO/81 09IDC)NOxoz(I) 1 CTOO/81 09IDC)NOxnozi 1-2) 2 12/31/05

2002 CT02/81 09(DC)NOxoz(l) 1 CT02/81 09(DC)NOxnoz(I) 1 12/31/07

2003 CT03/8109(DC)NOxnoz(I) 1 12/31/08

9. Delete paragraph A.14. and substitute the following therfor:

HSC shall cease operation ofBoiler 4 in building 1 upon issuance ofthis Trading Agreement and

Order Modification.

10. Change the amount of DERCs specified in paragraph B.1. from 17 tons ( 8 tons ozone, 9 tons nonozone) to 8 tons ( 3 tons ozone,S tons non-ozone).

11. Delete paragraph B.2. and substitute the following therefor:

The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order,

pursuant to Section 22a-174-22(j) ofthe Regulations, hereby allows HSC to comply with Section

22a-174-22(d) ofthe Regulations through use ofDERC trading to achieve the nitrogen oxide

emission reduction required by Subdivision 22a-174-22(d)(l) ofthe Regulations.

12. Change the date specified in paragraphs A.8., C.l., C.2., and C.13. from Apri130, 2007 to

May 1, 2007.

13. Delete paragraph C.2.c. and substitute the following therefor:

HSC shall comply during the operation ofthe boilers with FLERs shown in Table 1 in accordance

with this Trading Agreement and Order.

14. Delete paragraphs C.3., C.4. and C.5., and substitute the following for each therefor:

Reserved.

15. Delete paragraph C.6. and substitute the following therefor.
Hamilton Sundstrand Corporation 4 Trading Agreement and Order No. 8109

Modification No. I

DERC Use. Until May I, 2007, before the first day of each month HSC shall have in its possession

sufficient approved DERCs for such month for the boilers in building I based on the following

calculation:

a. Before the first day of each month, HSC shall estimate DERCs required for such calendar month

for the boilers in building I when burning No.6 fuel oil as follows:

Estimated DERCs (tons) use = {(Estimated fuel use in MMBtu) x «FLER) - (0.95 x NOx

allowable emission limit))}-i-2000 lbs/ton.

Where:

• Allowable limit = allowable limit rate in Ibs/MMBtu shown in Table I ofthis Trading

Agreement and Order.

• Full load emission rate (FLER) as shown in Table I ofthis Trading Agreement and Order.

• Discount (0.95) = 5% design margin applied to the allowable limit rate.

• Fuel heating value = 152,000 Btu/gal for No.6 fuel oil.

b. No later than the twentieth day of each month, calculate and permanently retire actual DERCs

used in the preceding calendar month for the boilers in building I when burning #6 fuel oil using

the FLER as follows:

Actual DERCs (tons) used = {(actual fuel use in MMBtu) x «FLER) - (0.95 x

NOx allowable emission limit))}-i-2000 lbs/ton

16. Delete paragraphs C.7. and C.8. and substitute the following therefor:

Reserved.

17. Delete paragraph C.9. and substitute the following therefore:

Upon issuance ofthis Trading Agreement and Order, ifHSC has reason to believe it may be

exceeding the FLERs for the boilers, HSC shall conduct NOx emissions testing ofthe

corresponding boiler on or before sixty (60) days after the exceedance ofthe above limits in

accordance with the following:

I. HSC shall submit, for the Commissioner's review and written approval, an Intent-ToTest ("ITT") protocol not less than thirty (30) days prior to the emissions testing

required pursuant to this paragraph and paragraph C.18 ofthis Trading Agreement and

Order. The ITT protocol shall include at least:

11 The Department's Bureau of Air Management Test Form No. I, "Intent to Test".
Hamilton Sundstrand Corporation 5 Trading Agreement and Order No. 8109

Modification No.1

111. System operating parameters indicative ofthe highest operating rate since the last previous

stack test or the most recent Department witnessed emission test which ever is more recent,

including, but not limited to: steam output rate, temperature and pressure, fuel firing rate,

and NOx emissions rate.

IV. The ITT protocol shall provide that HSC shall perform testing as specified in Sections

22a-174-5 and 22a-174-22 ofthe Regulations.

v. HSC shall perform all testing required by this Trading Agreement and Order in

accordance with the approved ITT protocol.

VI. In conducting and performing the testing required by this Trading Agreement and

Order, and analyzing the results ofsuch testmg, HSC shall adhere to methods specified

in Sections 22a-174-5 and 22a-174-22 ofthe Regulations and as approved by the EPA

and the Commissioner.

V11. HSC shall schedule all emissions testing so as to allow the Commissioner to be present

during such testing and to independently verify facility operations, air pollution control

equipment parameters, and testing procedures.

viii. Within 30 days after completing any emissions testing required by this Trading

Agreement and Order, HSC shall submit to the Commissioner a written report

providing the results ofsuch testing; within 15 days of a notice from the Commissioner

mdicating any deficiencies in such report, HSC shall submit a revised report.

18. Delete paragraph C.12. and substitute the following therefor:

Annual Emission Statement. No later than March I, of every year after issuance ofthis Trading

Agreement and Order, HSC shall include with the Annual Emission Statement provided to the

Commissioner, a record of each sale or other transfer, ofDERCs for the previous calendar year.

HSC shall also include actual NOx emissions from each boiler using DERCs, and the amount

of all DERCs used including serial number (if assigned), and approved DERCs purchased from

other facilities. These reports shall be on a form prescribed by the Commissioner and shall be

in monthly increments, and by ozone and non-ozone seasons.

19. Delete paragraph C.14. and substitute the following therefor:

DERC Shortfall. At a minimum, DERCs required shall be adjusted upwards by 100% ifDERCs are

not in HSC's possession for use prior to the first day of each month or applicable season. However,

nothing in this Tradinl;l Agreement and Order shall affect the Commissioner's authority to institute

any proceeding or take any other action to require additional upward adjustment, based on the gravity

of any alleged noncompliance or violation oflaw. HSC shall permanently retire the quantity of

DERCs equivalent to the excess emissions plus a 100% premium within sixty (60) days ofHSC's

discovery ofthe DERC shortfall. HSC shall certify and report any such DERC retirement to the

Commissioner in accordance with paragraph C.36 ofthis Trading Agreement and Order.

20. Delete paragraph C.16. and substitute the following therefor:
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Hamilton Sundstrand Corporation 6 Trading Agreement and Order No. 8109

Modification No.1

FLER Exceedance. Noncompliance with an established FLER shall subject HSC to make restitution

by matching the quantity of emissions ("true up") caused by the exceedance plus a 100% premium.

The true up in tons ofDERCs shall be equal to the FLER exceedance in Ibs/MMBtu, multiplied by

the total heat input during the period of noncompliance divided by 2000 Ibs/ton. Ifthe period of

noncompliance is not known, the time period from the completion ofthe last/previous Commissioner

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

Commissioner's authority to institute any proceeding or take any other action to require additional

upward adjustment, based on the gravity of any alleged noncompliance or violation oflaw. HSC shall

permanently retire DERCs calculated in accordance with the above, plus a 100% premium, within

sixty (60) days ofHSC's discovery ofthe FLER exceedance. HSC shall report any FLER exceedance

to the Commissioner in accordance with paragraph C.36 ofthis Trading Agreement and Order.

21. Delete paragraph C.19. and substitute the following therefor:

Extension. No later than May 1, 2007, with respect to the boilers, HSC shall comply with the

requirements of Section 22a-174-22(d)(l) ofthe Regulations. There is no assurance that after full

program review ofthis and other Trading Agreements and Orders that the Commissioner will grant a

written extension ofthis Trading Agreement and Order.

22. Delete paragraph C.20. and substitute the following therefor:

Future Compliance Report. On or before September I, 2006, HSC shall submit a report in writing to

the Commissioner, as directed in paragraph C.37. ofthis Trading Agreement and Order, indicating

how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boilers

on and after May 1, 2007.

23. Delete paragraph C.23. and substitute the following therefor:

Definitions. As used in this Trading Agreement and Order,"the boilers" means boilers 1,2, and 3 in

building 1; "Approved DERCs" are those for which the Commissioner has provided written

authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner"

means the Commissioner or a representative ofthe Commissioner; "Non-Ozone season" means the

period from October 1 through April 30 in any given calendar year. "Ozone season" means the period

from May 1 through September 30 in any given calendar year.

24. Delete paragraph C.24. and substitute the following therefor:

Dates. The date of "issuance" ofthis consent order is the date the consent order is deposited in the

U.S. mail or personally delivered, whichever is earlier. The date ofsubmission to the Commissioner

of any document required by this consent order shall be the date such document is received by the

Commissioner. The date of any notice by the Commissioner under this consent order, including but
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Hamilton Sundstrand Corporation 7 Trading Agreement and Order No. 8109

Modification No.1

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 consent order, the word "day" as used in this consent order means calendar

day. Any document or action which is required by this consent 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.

All other terms and conditions of Trading Agreement and Order No. 8109 issued by the Commissioner acting

under Chapter 446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, 22a-177 and 22a-178 ofthe Connecticut

General Statutes shall remain in effect.

The Hamilton Sundstrand Corporation hereby consents to the entry ofthis modification to the Trading

Agreement and Order without further notice.

Hamilton Sundstrand Corporation // '0-11-

Signature: /~~fl /11l

( .JJp

Name: . I 0'1 it ,A/f. J- /-' flPD

Title: b i r ecti'J fY) ·€d''/1o,'c.crl CpH4-F'aflS

Date: 3 - 3 - 2-Qo(

Issued as a modification of an Order ofthe Commissioner ofEnvironrnental Protection.

Date

Commissioner

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No. ~002 2030 0006 5643 0017

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