", 

# STATE OFCONNECTICUT
DEPARTMENT OFENVIRONMENTALPROTECTION

In the matterof ) ) 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 ofbusiness 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, PSEGoperates 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 orNo.2) and/or natural
gas. No.2 fuel oil is used primarily as a start-up fuel. Acontinuous 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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4

. 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 afterMay**~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 emissionrates. Such concrol systemenabled 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 forpurposes 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 determinedby actual NOx emissions in the event that che 24-houraverage 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.-



## '.- 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**  

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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 emissionreduction credits ("DERCs"). IfDERCs are created during the ozone 

### season, PSEG

### mayobtainapproval for suchreductions for use as Budget emission reduction credits ("BDERCs")

. 

### StartingonOctober 1, 2003, andduring the period fromOccober 1 throughApril 30, inclusive, each yearuntil May 1, 2005, PSEGmay onlyobtain approval of actual reductions inNOx emissions, generatedbyoperating the boiler at a rate which is 

### below 0.15 lb/MMBtuduring the non-ozone seasonon No.6 oil, 

### No.2 oil and/ornatural gas

.
Whenproperlydocumentedby PSEG, and approvedby the Commissioner, the reductions inNOx emissions identified above, andas computed in accordance with the terms of this TradingAgreement and Order, will conformto the requirements of Section 22a-174-22(j)(3) of the Regulations. Specifically, the reductions will be,

Real because theyresult in a reduction ofactual emissions released into the air, net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions are properlymeasured, recorded and reported.

Quantifiable because they are based on continuous emissionmonitoring data as applied in an appropriate reliable and replicable protocol, providing the rate and tocal mass amount ofreduction.

Surplus because they are not required by any Connecticut statute orregulation mandatedby a current" State Implementation Plan ("SIP"), and are not currently reliedupon in any applicable attainment... 

### PSEG ?ower**COlli~ec:icuc** 

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### No. 8240

plan, any reasonable furtherprogress plan ormilestone demonstration.

Permanent because the advanced control systemis in place**and.~operating,** and an appropriate tracking system is in**pla~e** to monitor all data required to verify and quantify the creation ofDERCs.



### Enforceable because the DERCs are approved by 

### the Commissionerretrospectively after the submission by PSEG 

### of the seasonal or annual reports that will document their creation.



### B.1. Ozone seasonBDERCs maybe generated and used in accordance 

### with this TradingAgreement andOrder.

B.2. Upon sufficient documentationas prescribedbelow, the Commissionermayprovide written approval of the generation

...**~.)** ofDERCs by PSEG retrospectively. Approved DERCs and BDERCs '........, generatedby PSEG may be held by PSEG or transferred to otherpersons 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 ofDERC 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. Forpurposes 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



# -?SEG Power**Con~ecticut** LLC 5 Trading Agreement and OreerNo.**82~O**

'.- baseline emission rates for the boiler, or the proportionedbaseline emission rate sec forch**~n** footnote 2 ofparagraph C.6.

# 0: this Trading**Agreemen~** and Orderwhen simultaneously operating on
more**t~an** one fuel. PSEG shall use the above referedced baseline emission race(s) when calculating the proportionedbaseline emission rate.

i.When calculating DERCs, PSEG shall use the lower of daily total CEM-calculatedMMBtu 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 orCEMdata while operating on No. 2 fuel oil'and/or natural gas shall be incorporated into the proportionedbaseline emission rate whenever the boiler is operating onNo. 2 fuel oil and/or natural gas as referenced in paragraph C.6. of this TradingAgreement and Order and shall be retired by the facility and permanently removed from all calculations on a dailybasis.**iii.k~** additional ten (10) percent of all DERCs (tons) generatedby 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 onOctober 1, 2003 and**~~til** May 1, 2005 during the non-ozone season: Forpurposes ofgenerating 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 OrderNo. 8240

2. 

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

### the**bo~ler** 

### shall be retiredby the facility and**perma~ently** 

### removed from all calculations on a non**ozon~** 

### seasonbasis to assure a benefit to the environment.

c. Non-ozone SeasonRestrictions. Non-ozone seasonNOx 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 ofthe Regulations ("NOx Budget Program"). The boilermay 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 generatedby the boiler from May 1 through September 30 of a given year.



### ii.BDERCs shall onlybeusedbyotherNOxBudget 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 seasonDERCs and as otherwise may be provided.
During the ozone season until May 1, 2005 and dur1ng'

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### non-ozone seasonuntil October 1, 2003: In requesting a?proval ofDERCs generatedby the boiler, PSEG shall provide documentation containing a samole soreadsheet withcalculation formulas used to**det~rmin~~teported** 

### numbersi monthlyoperating reports ofactual fuel usage including the fuel BTU content, numberofbarrels, gallons, and cubic feet used for each fuel type; dailyMMBtu for each fuel type and actual heat inputbaseduponCEM-recordeddatai daily weighted andunweighted actual NOxemissionrates (24- houraverage); and DERCsgeneratedusing the baseline emissionrate(s), or the proportionedbaseline emission rate referenced inparagraphC.1. of this Trading Agreement andOrder, net ofthe applicable uncertainty and environmental discounts. During the non-ozone season starting onOctober 1, 2003 and until Mav 1, 2005: In requesting approval ofDERCs generatedby the "boiler, PSEGshall provide documentationcontaining a sample spreadsheet withcalculation formulas used to determine reportednumbers; non-ozone seasonoperating reports ofactual fuel usage including the fuel BTU content, numberofbarrels, gallons, and cubic feet used for each fuel type; non-ozone seasonMMBtu for each fuel type and actual heat input baseduponCEMrecordeddata;:non-ozone season actual NOxemission rates (sevenmonth average); andDERCs generatedusing the 0.15 Ib/MMBtubaseline emissionrate(s), net of the applicable environmental discount.

3. When the daily ornon-ozone seasonCEM-recordedNOx emission rate is used to calculate DERCs generatedby the boiler, PSEG shall not include missing data calculated in accordance withanymissing data substitutionprocedures, including those allowedunder 40 CFR Part 75.

4. In order to considerCEM-recordedNOx emissionrates valid forDERC approval, all NOx and**CO~/O~** 

### CEMs must complywith 40 Code ofFederal Regulations Part 75.

5. 

### Upon sufficient documentation, as determined by

### the Commissioner, that PSEGhas met the requirements ofPSSG ?ower Connecticut LLC 

## s**T~ading** Asreement**a~d** OrderNo. 3240**~"**

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# - 6. this Trading Agreement**a~d** Order, the Commissioner may provide written approval ofDERcs 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 generatedby PSEG under this Trading Agreement and Ordermay be held or transferred to otherpersons.

When the boilerhas daily NOx emissions below the applicable baseline emission rate(s), or the proportioned baseline emission rate, orwhen 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 ofDERCs generated on a daily/seasonal basis (as applicable) as follows:

DERCs (tons) : {[Total heat input1 of all fuels in MMBtu x {(DroDortionedbaseline emission rate2) (the

### CEM-record~d NOX emission rateJ)] + 2000 lbs/ton} x 10.90) •

1 Heat input shall be calculatedusing 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 sumby the total heat input. 

### If the boiler is operating exclusively on one fuel, PSEG may replace the proportionedbaseline 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 orCEM data while operating onNo. 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 OrderNo. 8240



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7. 2003) shall be**lnco~porcLea** lnto the**p=o90rtio~ed** bcseline emission race whenever the boiler is operating onNo.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 calculatedpursuant 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 withNOx RACT for Sources Subject to 40 CFR (Acid Rain Sources)" dated 12/18/98 which is attached to and incorporatedby reference into this TradingAgreement and Order as part ofAttachment 1.

4 An additional ten (10) percent of all DERCs (tons) generatedby 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 periodbeginning November 1, 2002 and continuing until PSEG achieves permanent compliance for the boilerwith the emission standards in Section 22a-174-22(eJ of the Regulations

oruntil May 1, 2005, whichever occurs first. PSEG shall acquire approved DERCs, and document and record the amounts ofNOx emissions and DERCs used by serial number (ifassigned) by the boilereach 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



### '- 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 calculatedpursuant 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 calendarmonth, 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 boilerhas a daily NOx emission rate (24-hour average) exceeding the NOx RACT limit, calculate the amount of DERCs used, as follows:

DERCs (tons) : {[(CEM-recordedNOx daily average emission rate in lbs/MMBtu*) ((0.951 x (NOx RACT limit orproportioned 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 calculatedpursuant 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 tomeetin9 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, 2003PSBG**Powe~** Connecticut LLC 11**T~ading** Agreement and**O~ce~** No. 8240

b. and Octooe= 1, 2004, PSEG shall estimate and acquire the amount ofnon-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 throughApril 30 x {Actual emission rate in lb/MMBtu during October 1 throughApril 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 withPSEG Power Connecticut LLC 12 Trading Agreement and OrderNo. 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 Programcompliance 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 oroverdraft account to a State of Connecticut NOx allowance retirement account.

8. DERC Doubling. At a minimum, DERCs required shall be adjusted upwards by 100% ifOERCs 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 remainvalid for five (5) calendaryears from the year of the generation/allocation of such DERCs/allowances. DERCs/allowances older than five (5) calendaryears 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/allocatedprior to calendar year 2000 arevalid for use for compliance with Section 22a-174-22 of the Regulations up to and including December 31, 2004.

i 

## '- 10. When the daily or non-ozone season CEM-recordedNOx 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 NOxmass emissions, actual NOx emission rates (24-hour average), andstarting 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 OrderNo. 8240

12. No later than March 1 of everyyear 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 Orderuntil 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 calendaryear. These reports shall be on a form prescribedby 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 TradingAgreement and Order for a minimumof 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 Commissionernotifies PSEG that any document or other action is deficient, and does not approve it with conditions ormodifications, 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 Commissionermay approve the document or other action as submitted orperformed 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 thisPSEG Power Connecticut LLC 14 Trading Agreement and OrderNo. 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 Commissionerof 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 Commissionerunder this TradingAgreement and Order, including but not limited to notice of**a~Droval** or disapproval of any document or other actlon, shall be the date such notlee is deposited in the u.s. mail or is personally delivered, whichever is earlier. Except as otherwise specified in this TradingAgreement and Order, the word "dayl! as used in this Trading Agreement and Ordermeans calendar day. Any document or action which is requiredby this TradingAgreement and Order to be submitted orperformedby a date which falls on a Saturday, Sunday or a Connecticut or federal holiday shall be submitted orperformedby 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 ofConnecticut 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."



## ,PSEG Power Connecticut LLC 15 Trading Agreement and OrderNo. 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 Ordermay 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; liabilityof 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 affectedby the passage of title to any property to any otherperson or municipality.

21. Commissioner'S powers. Nothing in this TradingAgreement

ano Oreer**sna~I** a:rect the Commissioner's**author~ty** to institute anyproceedins 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 andOrder have not successfully corrected all violations, fully characterized the extent
or degree of anypollution, or successfull¥ abated or preventedpollution, the Commissionermay**~nstitute** any oroceeding to reauire PSEG to undertake further investigation or-further action to prevent or abate violations orpollution.

PSEG's obligations under law. Nothing in this Trading Agreement ana Oreer**snal~** relieve PSEG ofother 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 PSEGpursuant to this TradingAgreement and Orderwill result in compliance orprevent 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 OrderNo. 8240



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# , ,**'~.** 

### facility without Drior notice for the**pu~oses** 

### of monitor1ng and enrorcing the actions reau1red or allowed by this TradingAgreement and Order.

25. No effect on rights ofotherDersons. 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 TradingAgreement and Order, or that any such

. information was inaccurate ormisleading or that any relevant information was omitted, PSEG shall submit the correct or omitted information to the Commissioner.

28. Notification ofnoncomoliance. In the event that PSEG
oecomes aware tnat lt ala not ormay not comoly, or did not ormay 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 ofthe initial notice, PSEG shall**sub~it** 

### in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance or delay and propose, for the review and written approval ofthe 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 OrderNo. 8240

29. Submission of documents.**k~y** document required to be**SUDm~tteO** to tne**Cornm~ssioner** under this Trading Agreement andOrder shall, unless otherwise soecified in this**Trad~ng** Agreement and Order or in writing by the Commissioner, be directed to: Wendy Jacobs Deoartment ofEnvironmental Protection Bureau ofAirManagement Emissions and**Cred~t** Trading Section 79 Elm Street Hartford, Connecticut 06106-5127

/

### PSEG PowerConnecticut LLC 18 

### TradingAgreement andOrderNo. 8240

Type Title, 

### PSEG consents to the issuance of this TradingAgreement andOrder without further notice. The undersigned certifies that he/she is fully authorized to enter into this TradingAgreement andOrder and to legallybind**~SEG** 

### to the terms and conditions of the TradingAgreement aQdOrder.

PSEG Power Connecticut LLC

Signature'

____

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

_ 

### Type N

### arne:

.

__..: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 orderofthe

Environmental Protectionon

CITYOFNEW HAVEN**WL~** 

### RECORDS 

### issionerof 

## /2

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# , . 

# , , 

# ,_....'**~_ILED** 

### CERTI?IEDMAIL,**RETu~** 

### RECEIPTREQUESTED CertifiedDocument No.