",

STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of )

)

The State of Connecticut and )

)

PSEG Power Connecticut LLC ) .. .

Trading Asreemenc

and Order No. 8240

Whereas, the Commissioner of Environmental Protection

("Commissioner") and PSEG Power Connecticut LLC ("PSEG") 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 emission reduction trading will achieve this

result in a timely and cost-effective manner:

A. At the request and with the agreement of PSEG, the

Commissioner finds the follOWing:

PSEG is an exempt wholesale electric generating

company with its principal place of business in

Newark, New Jersey. On December 6, 2002 PSEG

purchased from Wisvesc-Connecticuc, LLC and now owns

one fossil fuel-fired electric generating station, New

Haven Harbor Station, at 1 Waterfront Street in New

Haven, Connecticut ("facilityH).

2. At the facili"ty, PSEG operates New Haven Harbor Station

Unit 1, Connecticut Permit Number 117-0031, a

tangentially-fired boiler, currently rated at 465

megawatts ("boiler"). The boiler has the dual capacity

to operate on fuel oil (No. 6 or No.2) and/or natural

gas. No.2 fuel oil is used primarily as a start-up

fuel. A continuous emissions monitor ("CEM"),

certified to 40 Code of Federal Regulations ("CFRtt)

Part 75, measures nitrogen oxide ("NOx") emissions from

the boiler.

3. During the year 1990, prior to installation of the new

system of 16 water-wall water lances, and based on

CEM and Method 7-E emission test data, the average

annual NOx emission rate for New Haven Harbor Station

Unit 1 was 0.28 Dounds oer million British thermal

units ("lbs/MMBt~") of heat input when operating on

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PSEG Power Connecticut LLC 2 Trading Agreeme~t

and Order No. 8240

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NO.6 fuel oil, 0.17 Ibs/MM3cu of heat input when

operating on No.2 fuel oil and 0.20 lbs/MM3cu of

heat input when operating on natural gas. On and

after May ~1, 1995, the Regulations of Connecticut

State Agez:teies ("Regulations") require that New Haven

Harbor S~ation Unit 1 emit NOx at a rate no greater

than 0.25 lbs/MMBtu of heat input when operating on

·No. 6 fuel oil and 0.20 lbs/MMBtu of heat input when

operating on NO.2 fuel oil or natural gas.

In December 1994, The United Illuminating Company,

through its contractors, completed installation and

began to test and make fully operational, a new

system of 16 water-wall water lances at the

facility, thereby reducing the boiler's NOx emission

rates below its permitted, allowed and actual 1990

emission rates. Such concrol system enabled PSEG's

boiler to frequently meet and operate below the

emission limitation specified in Section 22a-174-

22{e)of the Regulations.

5. Pursuant to Section 22a-174-22(j) of the Regulations,

PSEG intends to acquire and generate approved DERCs

until May 1, 2005 at the facility. Approved DERCs

are defined for purposes of this Trading Agreement

and Order as those for which the Commissioner has

provided written authorization for use in compliance

with Section 22a-174-22 of the Regulations.

6. PSEG will acquire approved DERCs monthly on an asneeded basis, as determined by actual NOx emissions

in the event that che 24-hour average of actual NOx

emissions exceeds the NOx emission limitations of

Table 22-1 of Section 22a-174-22(e) of the

Regulations and, scarting on October 1, 2003, and

during the period from October 1 through April 30,

inclusive, in the event that the non-ozone season

emission rate exceeds the emission rate specified in

Seccion 22a-174-22(e) (3) of the Regulations.-

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7. Upon issuance of chis Trading Agreement and Order,

and uncil May 1, 2005 for the ozone season and uncil

Octobe~ 1, 2003 for the non-ozone season, PSEG may
?SEG Power Co~~ecticut LLC 3 T~ading As~eement

anc Order No. 8240

o"''J ,,

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9.

obtain 2.Doroval of actual red~ctio~s in NOx

emissions, generated by ogerati~9 the boiler at a

rate which is below 0.25 Ibs/MMBtu of heat input

when ooerating on No.6 fuel oil, 0.17 Ibs/~~3tu of - , heat inpu~'when operating on No.2 fuel oil and 0.20

Ibs/~~Btu of heat input when operating on natural

gas, for use as discrete emission reduction credits

("DERCs"). If DERCs are created during the ozone

season, PSEG may obtain approval for such reductions

for use as Budget emission reduction credits

("BDERCs") .

Starting on October 1, 2003, and during the period

from Occober 1 through April 30, inclusive, each

year until May 1, 2005, PSEG may only obtain

approval of actual reductions in NOx emissions,

generated by operating the boiler at a rate which is

below 0.15 lb/MMBtu during the non-ozone season on

No.6 oil, No.2 oil and/or natural gas .

When properly documented by PSEG, and approved by the

Commissioner, the reductions in NOx emissions

identified above, and as computed in accordance with

the terms of this Trading Agreement and Order, will

conform to the requirements of Section 22a-174-22(j) (3)

of the Regulations. Specifically, the reductions will

be,

Real because they result in a reduction of actual

emissions released into the air, net of any

consequential increase in actual emissions resulting

from shifting demand. The emission reductions are

properly measured, recorded and reported.

Quantifiable because they are based on continuous

emission monitoring data as applied in an appropriate

reliable and replicable protocol, providing the rate

and tocal mass amount of reduction.

Surplus because they are not required by any

Connecticut statute or regulation mandated by a current"

State Implementation Plan ("SIP"), and are not

currently relied upon in any applicable attainment
... PSEG ?ower COlli~ec:icuc LLC T~ading A9reemen~

and Orde~ No. 8240

plan, any reasonable further progress plan or milestone

demonstration.

Permanent because the advanced control system is in

place and.~operating, and an appropriate tracking system

is in pla~e to monitor all data required to verify and

quantify the creation of DERCs.

Enforceable because the DERCs are approved by the

Commissioner retrospectively after the submission by

PSEG of the seasonal or annual reports that will

document their creation.

B.1. Ozone season BDERCs may be generated and used in accordance

with this Trading Agreement and Order.

B.2. Upon sufficient documentation as prescribed below, the

Commissioner may provide written approval of the generation

...~.) of DERCs by PSEG retrospectively. Approved DERCs and BDERCs

'........, generated by PSEG may be held by PSEG or transferred to

other persons in accordance with this Trading Agreement and

Order.

B.3. The Commissioner, ~n accordance with the provisions of this

Trading Agreement and Order, pursuant to Section 22a-174-

22(d) (3) of the Regulations, hereby allows PSEG to comply

with Section 22a-174-22(d) (1) of the Regulations through use

of DERC trading.

C. With the agreement of PSEG, the Commissioner, acting under

Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 of

the Connecticut General Statutes, orders PSEG as follows:

1. DERC generation.

During the ozone season until May 1, 2005 and during

the non-ozone season until October 1, 2003:

a. For purposes of calculating the number of DERCs

generated from the boiler at the facility, PSEG shall

use 0.25 Ibs/MMBtu of heat input when operating on

No.6 fuel oil, 0.17 lbs/MMBtu of heat input when

operating on NO.2 fuel oil and 0.20 lbs/MM3tu of

heat input when operating on natural gas as the

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?SEG Power Con~ecticut LLC 5 Trading Agreement

and Oreer No. 82~O

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baseline emission rates for the boiler, or the

proportioned baseline emission rate sec forch ~n

footnote 2 of paragraph C.6. 0: this Trading

Agreemen~ and Order when simultaneously operating on

more t~an one fuel. PSEG shall use the above

referedced baseline emission race(s) when calculating

the proportioned baseline emission rate.

i.When calculating DERCs, PSEG shall use the lower of

daily total CEM-calculated MMBtu value or actual

fuel usage daca for the boiler in MMBtu/day, when

determining heat input.

ii.The ten (10) percent uncertainty discount due to

not having data from an official Method 7-E

emission test or CEM data while operating on No. 2

fuel oil' and/or natural gas shall be incorporated

into the proportioned baseline emission rate

whenever the boiler is operating on No. 2 fuel oil

and/or natural gas as referenced in paragraph C.6.

of this Trading Agreement and Order and shall be

retired by the facility and permanently removed

from all calculations on a daily basis.

iii.k~ additional ten (10) percent of all DERCs (tons)

generated by the boiler shall be retired by the

facility and permanently removed from all

calculatio~s on a daily basis to assure a benefit

to the environment.

b.Starting on October 1, 2003 and ~~til May 1, 2005

during the non-ozone season:

For purposes of generating DERCs from the boiler at

the faCility, PSEG shall use 0.15 Ibs/MMBtu of heat

input when operating on No. 6 fuel oil, No.2 fuel

oil and/or natural gas as the non-ozone season

baseline emission rate for the boiler.

i.When calculating DERCs, PSEG shall use the lower of

non-ozone season total CEM-calculated ~~Btu value

or actual fuel usage daca for the boiler in

MMBtu/non-ozone season, when determining heat
?SEG ?ower Connecticut LLC

input.

5 Trading Agreement

and Order No. 8240

2.

ii.Ten (10) pe=cent of all DERCs (tons) generated ~y

the bo~ler shall be retired by the facility and

perma~ently removed from all calculations on a nonozon~ season basis to assure a benefit to the

environment.

c. Non-ozone Season Restrictions. Non-ozone season NOx

DERCs generated by PSEG shall be created and approved

in accordance with this Trading Agreement and Order,

and shall remain valid until they are used or ~'til

their vintage expiration date, whichever occurs

first.

d. Ozone Season Restrictions. The boiler is subject to

Section 22a-174-22a of the Regulations ("NOx Budget

Program"). The boiler may generate ozone season

BDERCs to comply with Section 22a-174-22 of the

Regulations in accordance with paragraph C.l.a. of

this Trading "Agreement and Order and the following

conditions and restrictions:

i.BDERCs shall only be generated by the boiler from

May 1 through September 30 of a given year.

ii.BDERCs shall only be used by other NOx Budget

Program sources located in Connecticut.

iii.BDERCs shall only be used to offset ozone season

excess emissions, and shall not be used for

compliance during the non-ozone season.

iv.BDERCs generated during a given year shall only be

used during the follOWing ozone season. BDERCs may

be generated until May 1, 2005 under this Trading

Agreement and Order. BDERCs are subject to all DERC

requirements set forth in this Trading Agreement

and Order except for those requireme~ts pertaining

solely to non-ozone season DERCs and as otherwise

may be provided.

During the ozone season until May 1, 2005 and dur1ng
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PS~G Power Connecticut LLC 7 Trading Agree~ent

and Order No. 8240

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t~e non-ozone season until October 1, 2003:

In requesting a?proval of DERCs generated by the

boiler, PSEG shall provide documentation containing a

samole soreadsheet with calculation formulas used to

det~rmin~~teported numbersi monthly operating reports

of actual fuel usage including the fuel BTU content,

number of barrels, gallons, and cubic feet used for

each fuel type; daily MMBtu for each fuel type and

actual heat input based upon CEM-recorded datai daily

weighted and unweighted actual NOx emission rates (24-

hour average); and DERCs generated using the baseline

emission rate(s), or the proportioned baseline emission

rate referenced in paragraph C.1. of this Trading

Agreement and Order, net of the applicable uncertainty

and environmental discounts.

During the non-ozone season starting on October 1, 2003

and until Mav 1, 2005:

In requesting approval of DERCs generated by the

"boiler, PSEG shall provide documentation containing a

sample spreadsheet with calculation formulas used to

determine reported numbers; non-ozone season operating

reports of actual fuel usage including the fuel BTU

content, number of barrels, gallons, and cubic feet

used for each fuel type; non-ozone season MMBtu for

each fuel type and actual heat input based upon CEMrecorded data;: non-ozone season actual NOx emission

rates (seven month average); and DERCs generated using

the 0.15 Ib/MMBtu baseline emission rate(s), net of the

applicable environmental discount.

3. When the daily or non-ozone season CEM-recorded NOx

emission rate is used to calculate DERCs generated by

the boiler, PSEG shall not include missing data

calculated in accordance with any missing data

substitution procedures, including those allowed under

40 CFR Part 75.

4. In order to consider CEM-recorded NOx emission rates

valid for DERC approval, all NOx and CO~/O~ CEMs must

comply with 40 Code of Federal Regulations Part 75.

5. Upon sufficient documentation, as determined by the

Commissioner, that PSEG has met the requirements of
PSSG ?ower Connecticut LLC s T~ading Asreement

a~d Order No. 3240

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6.

this Trading Agreement a~d Order, the Commissioner may

provide written approval of DERcs generated by PS3G

retrospectively. Requests for approval of all DERCs

generated ~hall be submitted in writing to the

Commissioner. Such requests shall be compiled on a

monthly or seasonal (during the non-ozone season only

starting on October 1, 2003) basis and shall be

submitted at least on an annual basis. Approved DERCs

generated by PSEG under this Trading Agreement and

Order may be held or transferred to other persons.

When the boiler has daily NOx emissions below the

applicable baseline emission rate(s), or the

proportioned baseline emission rate, or when the boiler

has seasonal NOx emissions below 0.15 Ib/MMBtu during

the non-ozone season starting on October 1, 2003, PSEG

shall calculate the amount of DERCs generated on a

daily/seasonal basis (as applicable) as follows:

DERCs (tons) : {[Total heat input 1 of all fuels in

MMBtu x {(DroDortioned baseline emission rate 2

) (the

CEM-record~d NOX emission rateJ )] + 2000 lbs/ton} x

10.90) •

1 Heat input shall be calculated using the lower of CEMrecorded data" or actual fuel usage data in MMBtu per

unit of fuel cornbusted.

:2 This rate shall be calculated by 1) multiplying the

heat input of each fuel combusted by the baseline

emission rate(s) for such fuel; 2) summing those

products; and 3) diViding the sum by the total heat

input. If the boiler is operating exclusively on one

fuel, PSEG may replace the proportioned baseline

emission rate with the applicable baseline emission

rate, for that fuel. Starting on Occober 1, 2003,

the baseline emission rate during the non-ozone

season shall be 0.15 lb/MM3tu. The ten {lO} percent

uncertainty discount due co not having data from an

official Method 7-E stack test or CEM data while

operating on No. 2 fuel oil and/or natural gas

(during the ozone season only starting on October 1,
?S~G Power Connecticut LLC 9 Trading Asreement

and Order No. 8240

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7.

2003) shall be lnco~porcLea lnto the p=o90rtio~ed

bcseline emission race whenever the boiler is

operating on No.2 :uel oil and/or natural gas.

3 Du~ing ~~e ozone season until May 1, 2005, and during

the non-ozone season until October 1, 2003, this rate

shall be calculated pursuant to the methodology

described in 40 Code of Federal Regulations Part 75

and weighted pursuant to the Department's policy

statement entitled "Guidance for Calculation of

Emission Reduction Credits and Determination of

Compliance with NOx RACT for Sources Subject to 40

CFR (Acid Rain Sources)" dated 12/18/98 which is

attached to and incorporated by reference into this

Trading Agreement and Order as part of Attachment 1.

4 An additional ten (10) percent of all DERCs (tons)

generated by the boiler shall also be retired by the

facility and permanently removed from all

calculations on a daily basis to assure a benefit to

the environment. Starting on October 1, 2003, during

the non-ozone season, the ten percent discount shall

be retired by the facility and permanently removed

from all calculations on a seasonal basis to assure a

benefit to the environment.

DERC Use. Approved DERCs shall be acquired for

compliance with the emission standards in Section 22a174-22 of the Regulations fqr the period beginning

November 1, 2002 and continuing until PSEG achieves

permanent compliance for the boiler with the emission

standards in Section 22a-174-22(eJ of the Regulations

or until May 1, 2005, whichever occurs first. PSEG

shall acquire approved DERCs, and document and record

the amounts of NOx emissions and DERCs used by serial

number (if assigned) by the boiler each day and

scarting on October 1, 2003, also each non-ozone

season, and shall maintain and provide such records in

accordance with the following and Section 22a-174-4 of

the Regulations, until May 1, 2005:

a. At all times:
PS~G Power Connecticu: LLC 10 Trading Agreement

and Order No. 8240

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Before the first day of each month, calculate

projected worst case DERCs required for that

calendar month as follows:

DERQs"(tons) :: {[estimated worst case NOx emission

rate in lbs/MMBtu - ((0.95) x (NOx MCT limit or

proportioned emission rate calculated pursuant to

Section 22a-174-22 (f) (2) (A) of the Regulations in

lbs/V~Btu))l x (Estimated fuel use in MMBtu)} )

2000 pounds.

No later than the twentieth day of each month,

PSEG shall calculate DERCs used in the preceding

calendar month, as follows:

(1) For the boiler on each day, determine whether

the 24-hour average NOx emission rate* is

less than the baseline emission rate or

greater than the NOx RACT limit.

(2) When the boiler has a daily NOx emission rate

(24-hour average) exceeding the NOx RACT

limit, calculate the amount of DERCs used, as

follows:

DERCs (tons) : {[(CEM-recorded NOx daily average

emission rate in lbs/MMBtu*) ((0.951 x (NOx RACT

limit or proportioned emission rate calculated

pursuant to Section 22a-174-22 (f) (2) (A) of the

Regulations in Ibs/MMBtu)}) x (actual fuel use ~n

MMBtu)} • 2000 pounds.

*This rate shall be calculated pursuant to the

methodology described in 40 CFR Part 75.

During the non-ozone season starting on October 1,

2003:

~Larting on October I, 2003, and during the period

from' October 1 throuah Aoril 30, inclusive, each

year until May 1, 2065, t.he boiler shall, in

addition to meetin9 the 24-hour emission limit in

Table 22-1 of Sectlon 22a-174-22 of the

Regulations, meet a non-ozone season emission

limit of 0.15 lb/MMBtu. Prior to October 1, 2003
PSBG Powe~ Connecticut LLC 11 T~ading Agreement

and O~ce~ No. 8240

b.

and Octooe= 1, 2004, PSEG shall estimate and

acquire the amount of non-ozone season DE~Cs or

allowances needed to comoly with Section 22a-174-

221e) (3) of the Regulati~ns as follows:

Esti~1ted DERCs (tons) = [Estimated fuel use in ~MBtu from October 1 through April 30 x (Estimated

maximum emission rate in lb/MMBtu during October 1

through April 30 - (0.95 x 0.15 lb/~MBtu))J + 2000

pounds.

No later than May 31 of 2004 and 2005, calculate

DERCs used in the preceding non-ozone season as

follows:

DERCs (tons) = [Actual fuel use in MMBtu from

October 1 through April 30 x {Actual emission rate

in lb/MMBtu during October 1 through April 30 -

(0.95·x 0.15 lb/MMBtu))) + 2000 pounds.

PSEG shall acquire sufficient approved DERCs no

later than the first day of each month to assure

compliance with the emission stand~ds in Section

22a-174-22 of the Regulations for, at a minimum,

that calendar month. With the exception of

BDERCs, excess DERCs from previous months can be

applied to subsequent months. BDERCs are subject

to the limitations set forth in paragraph C.1.d.

of this Trading Agreement and Order.

c. PSEG shall maintain documentation to attest to the

fact that DERCs used during the ozone season were

generated during the ozone season. Generator

certification of this fact shall be sufficient.

d. Pursuant to Section 22a-174-22 (d) (3) of the

Regulations, PSEG may use NOx allowances, pursuant

to Section 22a-174-22{j) 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 wit~ 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
PSEG Power Connecticut LLC 12 Trading Agreement

and Order No. 8240

Section 22a-174-22 of the Regulations shall be

equivalent to one discrete emission reduccion

credit and shall be deducted from PSEG's NOx

Budges 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.

8. DERC Doubling. At a minimum, DERCs required shall be

adjusted upwards by 100% if OERCs are not in PSEG's

possession prior to the first day of each month and,

starting on October 1, 2003, each non-ozone season.

9. Vintage 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 older than five (5) calendar years

from their creation/allocation are not valid for use

for compliance with Section 22a-174-22 of the

Regulations. Notwithstanding the above,

DERCs/allowances generated/allocated prior to calendar

year 2000 are valid for use for compliance with Section

22a-174-22 of the Regulations up to and including

December 31, 2004.

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10. When the daily or non-ozone season CEM-recorded NOx

emission rate is used to calculate DERCs used by the

boiler, PSEG shall include missing data calculated in

accordance with missing data substitut~on procedures

under 40 CFR Part 75.

11. PSEG shall maintain records for the boiler showing

daily NOx mass emissions, actual NOx emission rates

(24-hour average), and starting on October 1, 2003 nonozone season NOx emission rates. PSEG shall also

maintain records showing a daily total of all DERCs

used and generated net of the applicable uncertainty

and environmental discounts.
PS~G Power Connecticut LLC 13 Trading Agreement

and Order No. 8240

12. No later than March 1 of every year after issuance of

this Trading Agreement and Order, PSEG shall include

with the P~nual Emission Statement provided to the

Commissio~er, a record of each sale- or other transfer,

and use of any and all of the DE~Cs approved within and

subsequent to issuance of this Trading Agreement and

Order until all such DERcs have been used. PSEG 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. These reports

shall be on a form prescribed by the Commissioner.

Should PSEG choose to discontinue the generation of

DERCs, PSEG shall notify the Commissioner in writing

upon discontinuance.

13. PSEG shall retain records and supporting documentation

as described in this Trading Agreement and Order for a

minimum of five years, commencing on the date such

records were created. PSEG shall provide the records

specified above to the Commissioner within thirty (30)

days of receipt of a written request from the

Commissioner.

14. Approvals. PSEG shall use best efforts to submit to the.

Commissioner all documents required by this Trading

Agreement and Order in a complete and approvable form.

If the Commissioner notifies PSEG that any document or

other action is deficient, and does not approve it with

conditions or modifications, it is deemed disapproved,

and PSEG shall correct the deficiencies and resubmit it

within the time specified by the Commissioner or, if no

cime is specified by the Commissioner, wichin 30 days of

the Commissioner's notice of deficiencies. In approving

any documenc or other action under this Trading

Agreement and Order, the Commissioner may approve the

document or other action as submitted or performed or

with such conditions or modifications as the

Commissioner deems necessary to carry OUt the purposes

of this T~ading Agreement and Order. Nothing in this
PSEG Power Connecticut LLC 14 Trading Agreement

and Order No. 8240

o

paragraph shall excuse noncompliance or delay.

15. Definitions. As used in this Trading Agreement and

Oreer, "Conunissioner" means the CommlSSloner or a

representatave of the Corrunissioner; "Ozone season" means

the perio~ from May 1 through September 30 in any given calendar year, and "NOx MCT" means NOx Reasonably Available Control Technology. 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.

16. Dates. The date of submission to the Commissioner of

any aocurnent 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 a~Droval or

disapproval of any document or other actlon, shall be

the date such not lee 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 "dayl! 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 Connectlcut or federal

holiday.

17. Certification of documents. Any document, including but no~ l~m~~ea ~o any not~ce, which is required to be

submitted to the Commissioner under this Trading Agreement and Order shall be signed by PSEG or, if PSEG

is not an individual, by PSEG's chief executive officer

or a duly authorized representative of such officer, as

those terms are defined in §22a-430-3 (b) (2) of ~he

Regulations of Connecticut State Agencies, and by the

individualCs) responsible for actually preparini such

document, and PSEG or PSEG's chief executive ofLicer and

each such individual shall certify in writing as

follows: "I have oersonally examined and am familiar

with the informstlon submitted in this document and all

attachments thereto, and I certify, based on reasonable

investigation, including my inouiry of those individuals

responslble for obtaining the 1nformation, that the

submitted information is true, accurate and complete to

the best of my knowledge and belief. I understand that

any false statement made in the submitted information is

Dunishable as a crimi~al offense under §53a-157b of the

Connecticut General Statutes and any other applicable law. "

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PSEG Power Connecticut LLC 15 Trading Agreement

and Order No. 8240

22.

23.

18. Noncomoliance. This Tradins Agreement and Order is a r~naI oreer or the Commiss~oner with resoect to the

matters addressed herein, and is nonappealable and i~~ediately enforceable. Failure to comply with this

Trading Agr~ement and Order may sUbject PSEG to an injunctio~ and penalties.

19. False statements. Any false statement in any information SUDm~tteO oursuant to this Trading Agreement and Order

is punishable as a criminal offense under §53a-1S7b of

the Connecticut General Statutes and any other

applicable law.

20. Notice of transfer; liability of PSEG. Until PSEG has !u~~y comoI~ec w~tn tn~5 TraQ~ng Agreement and Order,

PSEG shall notify the Commissioner in writing no later

than 15 days after transferring all or any portion of

the facility, the operations, the site or the business

which is the subject of this Trading Agreement and Order

or after obtaining a new mailing or location address.

PSEG's obligations under this Trading Agreement and

Order shall not be affected by the passage of title to

any property to any other person or municipality.

21. Commissioner'S powers. Nothing in this Trading Agreement

ano Oreer sna~I a:rect the Commissioner's author~ty to

institute any proceedins or take any other action to

prevent or abate violat10ns of law, prevent or abate

pollution, recover costs and natural resource damages, and to impose oenalties for past, present, or future

violations of law. If at any time the Commissioner

determines that the actions taken by PSEG pursuant to

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

or degree of any pollution, or successfull¥ abated or

prevented pollution, the Commissioner may ~nstitute any oroceeding to reauire PSEG to undertake further

investigation or-further action to prevent or abate

violations or pollution.

PSEG's obligations under law. Nothing in this Trading

Agreement ana Oreer snal~ relieve PSEG of other

obliaations under aoolicable federal, state and local law.~ _.

No assurance by Commissioner. No provision of this Trae~ng Agreement ana Oraer and no action or inaction by

the Commissioner shall be construed to constitute an

assurance by the Commissioner that tne actions taken by

PSEG pursuant to this Trading Agreement and Order will

result in compliance or prevent or abate pollution.

24. Access to faCility. ~~y reoresentative of the

uepartment 0: ~nvlronmental·?ro~ection may enter the
-. , PSEG Power Connecticut LLC 16 Trading Agreement

and Order No. 8240

r,

J

,

,

'~.

facility without Drior notice for the pu~oses of

monitor1ng and enrorcing the actions reau1red or allowed

by this Trading Agreement and Order.

25. No effect on rights of other Dersons. This Trading

A9reement ana Oreer neltner creates nor affects any rlghts ofjpersons or municipalities that are not parties

to this Trading Agreement and Order. .

26. No Creation of Property Rights. This Tr~ding Asreement

ana oraer aoes not create any property r1ghts w1th

respect to these DERCs.

27. Notice to Commissioner of changes. Within 15 days of

tne aate rS~G oecomes aware or a cnange 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 information was omitted, PSEG shall submit the

correct or omitted information to the Commissioner.

28. Notification of noncomoliance. In the event that PSEG

oecomes aware tnat lt ala not or may not comoly, or did

not or may not comply on time, with any reaulrement of

this Tradlng Agreement and Order or of any·document required hereunder, PSEG 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,

PSEG shall sub~it in writing the date, time, and

duration of the noncompliance and the reasons for the

noncompliance or delay and propose, for the review and

written approval of the Commissioner, dates by which

compliance will be achieved, and PSEG shall comply with

any dates which ma¥ be approved in writing by the

Commissioner. Notlficatlon by PSEG shall 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.
PSEG Power Connecticut LLC 17 Trading Agreement

and Order No. 8240

29. Submission of documents. k~y document required to be SUDm~tteO to tne Cornm~ssioner under this Trading Agreement and Order shall, unless otherwise soecified in

this Trad~ng Agreement and Order or in writing by the

Commissioner, be directed to:

Wendy Jacobs

Deoartment of Environmental Protection

Bureau of Air Management Emissions and Cred~t Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127

/
PSEG Power Connecticut LLC 18 Trading Agreement

and Order No. 8240

Type Title,

PSEG consents to the issuance of this Trading Agreement and Order

without further notice. The undersigned certifies that he/she is

fully authorized to enter into this Trading Agreement and Order

and to legally bind ~SEG to the terms and conditions of the

Trading Agreement aQd Order.

PSEG Power Connecticut LLC

Signature ' ____----;'-<;'f-"'-'="":_.J.LA)U..JI.'-'=:";" _

Type Narne:.__..:J')eI.''S.;.<j{". ro.e=..,:.y--"l'·;c.:•...c.:..!-.:;!o"'o"'ro.e"-- _

V

Vice President - Fossil Operat~ons

Date: Januarv 24, ,003

""\ .;:.:J

Issued as a final order of the

Environmental Protection on

CITY OF NEW HAVEN WL~ RECORDS

issioner of

/2

Jr.

, . , , ,_....'

~_ILED CERTI?IED MAIL, RETu~ RECEIPT REQUESTED

Certified Document No.