# :SlATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTALPROTECTION

51.!l.TE 0: CONNSCTICi.iT

P'.ND**NO~T~SAST** NUCLSAR SNERGY COM?Jl.NY I I I ) I )**T~~DING AGR~LMSNT**  AND**O~DLR** NO. 8152A

whereas, the Comlnissioner of Environmental Protection ("Coffi.TI\lssioner") and the Northeest Nuclear Energy Company ("NNECO") 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 credit ("ERe") trading to reduce nitrogen oxide ("NOx") emissions will 

### achieve this result in a timely and cost-effective manner:
A. At the request and with the agreement of NNECO, the Commissioner finds the following:


### 1. NNECO owns a 

### nuclearpowered electrical utility in Waterford, Connect.icut. ("Millstone").
2. At. Millstone, NNECO operates eleven (11) emergency generators for the three (3) nuclear reactors to provide electricity to the reactors' operating**equip~ent** 

### when normal electricity is unavailable. These emergency generators are identified in Exhibit 1 attachedhereto and incorporated by reference into this Trading Agreement and Order.
3. Due to the stringent Nuclear Regulatory Commission ("NRC") requirements for.-emergency generator readiness, NNECO has in the past, andmaybe required in the future, to perform scheduled testing ofthe emergency generators on days for which the Conunissioner has forecast that ozone levels

.....ill be "moderate to unhealthful", "unhealthful" or "very unhealthful"

. 4. Due to the above mentioned testing requirement, pursuant to Section 22a-174-22(b)(5) ofthe Regulations of Connecticut State Agencies ("Regulations"), eight of the emergency generators are subject to Sections 22a-l74-22(d) through (k) ofthe Regulations pertaining to the control ofNOx emissions.
5. Three of the emergency generators, the MP Unit 1 Fire Diesel, the Emergency Engine**"EO~'** 

### (Cummins) and the Meteorological To

.....er generator, have maximum rated capacities below three (3) MMBtu/hr and potential emissions ofNOx of less than 274 Ibs/day. Because ofthis and because Millstone is not located in a severe nonattainment area for ozone, these three engines
are not subject to the requirements of Section 22a-174-22 of the Regulations.

Initials (Printed on ReFycJed Paper) 79 Elm Street • Hardord,

### cr 06106·5127 blIp:lIdcp.Slalc.e!.uS A.n Equ.f;.l Oppar:u.niry EmployerNORTHEAST NUCLEAR ENERGY COMPP.NY**T~~ING AGR~EMENT** **Jl.~D** 

### ORDER NO. B152A

6. NNSCO completed NOx emissions testing of the**~emaining** eight (8) 

### emergency generators in 

### accorcance with 

### the approved test protocol and Section 22a-174-22 of the Regulations. The results of such testing have been accepted by the Department of Environmental Protection ("Department"). The MP Unit 1 Smergency Turbine GE LM1500, the M? Unit 3**~~ergency** Diesel Colt 

### pe2 Diesel (A) and the M? Unit 3 Emergency Diesel Colt ?C2 Diesel (3)**~~d** emissions below the**Reasona~ly** Available Control Technology ("RAeT") levels established in Section 22a-174-22te) of the Regulations and do not require emissions trading to 

### comply with Section 22a-174-22 of the Regulations.
7. ?ursuant to the Department ofEnvironmental Protection's policy statement entitled; "Credit Tradingfor Sources rlith Irregular NOx EmissionsH

, 

### dated 11/5/97, attached hereto and incorporated by 

### reference into this Trading Agreement and Order as Exhibit 2, the five (5) emergency generators listed in Table 1 below have peak daily NOx emissions greater than three times the average daily emissions during the ozone season and are therefore considered sources with irregular NOx emissions.
8. In September, 1997, pursuant to Section 22a-l74-22Ij) ofthe Regulations, NNECO acquired an initial five tons of approved
ozone season ERCs and ten tons ofnon-ozone season ERCs. In December of 1997, NNECO purchasedan additional eighty tons of approved ozone**se~son** 

### ERCs. NNECO intends to continue purchasing approved ERCs as needed.
9. Approved ERCs are defined for the purpose of this Trading Agreement and Order as those for which**t~e** 

### Commissioner has providedwritten**~uthorization** 

### for use in compliance with Section 22a-174-22 ofthe Regulations.
B. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, and pursuant to Section 22a-174-22(j) ofthe Regulations, hereby allows NNECO to comply with Section 22a-174-22 of the Regulations through use ofERC trading referenced in Section A, herein, to achieve the nitrogen oxide emission reductions required by Section 22a-174-22(d)(2) ofthe Regulations.

C. With the agreement ofNNECO,**~he** 

### Commissioner, acting under Connecticut General**Sta~utes** 

### Sections 22a-6,**22~-171,** 

### 22a-174, 22a176, and 22a-l77., orders NNECO as follows:
1. Based on the completion of aDoroved NOx emissions testing and the approval of such NOx emissions testing results, the Full Load Emission Rates ("FLERs") listed in Taole 1 have been established for the identifiea pieces ofequipment. Upon issuance ofthis Trading Agreement and Order, and continuing



### Initials 2**NORT~EAST ~-uCLE~~**  

### EN"RGY COMPANY TRADING**AGR~3M~NT p_~**  

### ORDER NO. 81S2A

until 

### May 1, 2003, NNECO shall comply during operation ofeach gene=ator with the :LERs listed in Table 1 below:

Table 1 NNECO

## - FU:Rs a.."ld NOx RACT Ll:l.ission Rates
Stack Test NOx RACT 

## , Fuel Result FU:R Rate 

# , GEl-i"ERATOR :: Type (g!3Hp-Er) (g/3Hp-P.=1 (g/BHp-Hr)

M? Unit 1 Emergency Diesel Diesel 8 9.0 8 Colt F-M 38T03-1/8 Diesel

M? U:l.it 2 Emergency Diesel Colt F-M 38108-1/8 Diesel Diesel 10 10.96 8 (12U)
M? Unit 2 Emergency Diesel Colt :-M 38TOB-1/8 Diesel Diesel 9 10.0 8 (13U) S'tation Blackout Diesel Diesel 13.0 14.3 

# I 8 Electro-Motive 2"." Generator
Station Security Diesel Diesel 10.46 11.6 8 Cu!nmins VT 1710GS/GC

2. After June 21, 1997, NNECO shall document and record the amounts and types ofall fuel used and ERCs used by each generator each day, and shall maintain and provide such records in accordance with the following and Section 22a-174-4 ofthe Regulations and, until May 1, 2003, shall:

a. Have in its:possession sufficient approved ERCs for the current day, basedon the following calculations (described also in Exhibit 2);

At all**t~es** (mass calculation):
ERCs (in tons) 

## =(actual hours operated x Hp rating x (FLER (g/3Hp-hr)

- (0.95 x NOx**~~CT** rate (g/BHp-hr») x ( Ipound/454g») 2000 pounds/ton During the ozone season only (peak day calculation):
The maximum actual excess NOx emissions (in lbs) on any of the days projected by the Commissioner to be "moderate to unhealthful," "unhealthful," or "very unhealthful," divided by 3 and then dividedby 13 (with the result in tons)**[(Maxim~~** excess NOx in Ibs) + 3) +



### Initials ERCs (in tons) "" [13 lbs/day/ton]

# ~Q 3 Date

# '1h\C\q

### NOrtTHEAST**~~CLEk~** ENERGY COMP.ZLI\lY**TR~!NG** 

### AGREEMENT**~~u** 

### ORDER NO. B152A

b. No later**th~~ Octo~e=**  30 of 1999, 2000, 2001, 2002 and 2003, calculate the SRCs used in che preceding ozone season as the greater of:

i. the actual total excess emissions for the ozone season in tons, as follows:

" ERCs ,in tons) 

## = [actual hours operatedx Hp rating x (FLER (g/SHp-hr)

- (0.95 x NOx RACT rate (g/3Hp-hr))) x (1 pound/454g») + 2000**po~~ds/ton**

OR

ii. the maximum actual excess NOx emissions (in lbs) on any of the days projectedby the Commissioner tobe "moderate to unhealthful," "unhealthful," or "very unhealthful," divided by 3 and then divided by 13 (with the result in tons):
ERCs (in**tons)~[(Maximum** excess NOx in lbs) + 3) + (13 lbs/day/ton)

As described in Exhibit 2 of this TradingAgreement and Order, to the extent that ERCs used to offset on peak day basis (method ii) exceed the total mass excess emissions (method i), remaining ERCs maybe used 

### in the non-ozone season in the same or subsequent years until May 1, 2003;

c. No later than January 31, 2000, 2001, 2002, 2003 and 2004, calculate ERCs used for non-ozone seasonmonths in the previous calendaryear, as follows:

ERCs (in tons) 

## = [actual hours operatedx Hp rating x (FLER (g/BHp-hr)

- (0.95 x NOx RACT rate (g/BHp-hr») x (1 pound/454g)] + 2000 pounds/ton

d. Adjust upwards by lOOt the ERCs required ifERCs are not in NNECO's possession prior co use;

e. Document and record daily fuel use and fuel type, excess NOx emissions and, during the ozone season, the daily.
ozone classification as forecasted by the Commissioner on the previous day;



### Initials 4 Date

# '1/,1'\9**NORT~~AST** NUCLEP3 

### SNERGY COMPANY**TR~ING** AGREEMENT**~ED** ORDER NO. 8152A



### 5 f. No later than March I, 2000, 2001, 2002, 2003 and 2004, include with its**a~~ual** emissions report to the Commissioner,**E~Cs** used (calculated as described in section C.2.b. and C.2.c. above), bv ozone and non-ozone seasons, for the previous calendar year;

g.**~etain ~ecords** **~,d** supporting documentation as described in this)paragraph for a minimum of five years, commencing 

# , . on the date sucn records are created;

h. Maintain documentation to attest to the fact that ERCs used during the ozone season were generated during the

ozone season. Generator certification of this fact shall be sufficient; and

i. Provide the records specified above to the Commissioner within thirty (30) days of receipt of a written request from the Commissioner.

3. Definitions. As used in this Trading Agreement and Order, "Commissioner" means the Cormnissioner of Environmental Protection or an agent of the Commissioner. "Ozone season"
means the period from May 1 through September 3D in any given calendar year.**~.** Notification of noncompliance. In the event that**~l{SCO** becomes
aware that it did not or may not comply, or did not or may not comply on time,**w~th** any requirement of this Trading Agreement**~~d** Order or of any document required hereunder, Respondent shall by telephone immediately notify the Bureau of Air**M~iagement** 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. NNECO shall also notify the Commissioner in writing within ten days ofbecoming
aware of the noncompliance or potential noncompliance stating the dace, time, and duration of the noncompliance, the reasons for the noncompliance or delay and all activities which the NNECO and its agents, employees and representatives took to avoid or repair the results of the**noncompli~~ce** andprevent the noncompliance, and propose, for the review and written approval of the Commissioner, dates by which compliance will be achieved. NNECO shall comply with any dates which may be approved in writing by the Commissioner. Notification by NNECO shall not
excuse noncompliance or delay, and the Commissioner's approval of any compliance dates proposed shall not excuse noncompliance



### Initials

# ~Q

### NORTHEASTNUCLEAR ENERGY**COMPA..~-Y TR~ING**  

### AGREEMSNT**~~u** 

### ORDER NO. B152A

ordelay**~~!ess** 

### specificallyso statedby the**Com~issioner** 

### in writing. Nothing herein shall negate the**~~ECO's** obligation to comply with Section 22a-174-7 of the Regulations. To the extent that the provisions of Section 22a-174-7 are inconsistent with the provisions of this TradingAgreement and Order. the more stringent of the provisions in the Trading Agreement and Order

or Section 22a-174-7 shall control. I 5. CertificatiOn of documents.**P~y** document. including but not limited to anynotice, which is required to be submitted to the**Com~issioner tL~der**  this Trading Agreement**~~d** Order shall be signed by the responsible corporate officer ofRespondent ora duly authorized representative of such officer, as those terms
are defined in Section 22a-430-3(b)(2) of the Regulations of Connecticut State Agencies,**~~d** by the individual or individuals responsible for actuallypreparing such document, each ofwhom shall examine andbe familiar with the information submitted in the document and all attachments thereto, and shall make inquiry of those individuals responsible for obtaining the information to determine that the information is true, accurate, and complete, and each ofwhom shall certify in**w~iting** as follows:

"I have personally examined and amfamiliar with the information submitted in this document and all**attac~~ents** thereto, and I certify that basedon**reaso~able** investigation, including my inquiry of those individuals responsible for obtaining the information, the submitted information is true, accurate and complete to the best ofmy knowledge andbelief. I understand that any false statement made in the submitted informationmay be punishable as a**c~iminal** offense under Section 22a-175 of the Connecticut General Statutes or, in accordance with Section 22a6 of the Connecticut General Statutes,**~~der** Section 53a-157b of the Connecticut General Statutes, and in accordance with any other applicable statute. n

6. Final Acrreement and Order. This Trading Agreement**~~d** Order is the final agreement and orderby andbetween the Commissioner andNNECO with respect to the matters addressedherein,**~~d** shall not be modified without the written agreement ofboth parties.

7. False statements. 

### Any false statement in any information submittedpursuant to this TradingAgreement and Ordermay be punishable as a criminal offense under Section 22a-175 of the Connecticut General Statutes or, in accordance with Section

Initials 

### 6

### NORTHEAST**N~CLE~~** ENERGY**COMP~_l'1Y TRP~ING**  

### AGREEMENT**~~ O?~ER**  

### NO. 8152A

22a-6. under Section 53a-157b of the**Cor~ecticut** Gene=al Statutes.

8. Notice of transfer; liability of !\TJ\SCQ and others. Until l\'!NSCO has fully compliedwith this Trading Agreement and Order. NNECO 

### shall notify the Commissioner in writing no later than fifteen (15) days after transferring all or anyportion of the facility, the**operat~~ns,** the site or the business which are the subject of this order, orobtaining a new mailing or location address.**k~y** license transfer shall be conducted in accordance with Section 22a-60 of the Connecticut General Statutes. NNECO's obligations**~~der** this Trading Agreement and Order shall not be affected by the passage of title to anyproperty to any other person ormunicipality.**ft~y** future owner of the site may be subject to the**issu~~ce** of an order from the Commissioner.

9. Commissioner'S powers. Nothing in this Trading Agreement**~~d** Order shall affect the Commissioner's authority to institute any proceeding or take any other action toprevent or abate violations of law, prevent or abate pollution, recover costs**~~d** natural resource damages, and to imposepenalties for violations of law which are willful or criminally negligent or for which penalties have not been specificallyprovidedin this Trading Order, including but not limited to violations of

### anypermit issuedby the Commissioner. If at any time the Commissioner determines that the actions taken byNNECO pursuant to this Trading Agreement andOrderhave not fully achieved compliance with Section**22~-,174-22** of the Regulations, the Commissionermay institute any independent proceeding to require NNECO to undertake further investigation or further action.

10. NNECO's obliaations under law. Nothing in this Trading Agreement and Order shall relieve**N~ECO** of other obligations**u.~der** applicable federal, state and local law.

11. Access to records and facility. Any representative of the Department ofEnvironmental Protectionmay enter the facility and inspect and copy records within normal business hours without priornotice for the purposes ofmonitoring and enforcing the actions required or allowedby this Trading Agreement and Order.**k~y** representative of the Department shall comply with NNECQ's visitor security procedures. Any records maintainedpursuant to this Trading Agreement and Order shall be made immediately available to any representative of the Department upon request at the facility.

Initials' 

### 7**NORTH~AST NUCL~.~~**  ENERGY COMPA.l\j-Y**TRP~ING** 

### AGREEM2NT**~~** 

### ORDER NO. B152A

12. No effect OD riohes of o;her persons. This Trading Agreement and Order shall neither create nor affect any rights ofpersons who ormunicipalities which are not parties to this Trading Agreement and Order.

13. Notice to Commissioner of charyoes. Within fifteen (15) days of the date**NNE~O** becomes aware of a change in any information submitted**t~** the Commissioner**~~der** this Trading Agreement and Order, or that any such informationwas inaccurate ormisleading
or that any relevant information was omitted, NNECO shall submit the correct Or omitted information to the Commissioner.

14. Submission of documents. Any document required to be submitted to the Commissioner under this Trading Agreement and Order shall,**~~less** otherwise specified in writing by the Commissioner, be directed to:

Mr. Marc Simpson Department of Environmental Protection Bureau of Air Management Compliance and Field Operations Division 79 Elm Street Hartford,**Co~~ecticut** 06106



## •

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# ~Q 8

### NORTHEAST**NUCLEk~** 

### ENERGY COMPJLtIJ'Y**TRP~ING** 

### AGREEMENT**P~D** 

### ORDERNO. 8152A**N~~CO** consents**~o** the issuance of this Trading Order without further**no~ice.** The**undersi~ed** certifies that he/she is fully authorized to enter into this Trading O=der**a~d** to 2ega2ly bind**NN~CO** to**~he te~s**  and conditions of the Trading Order.

Signature; 

### Type Name; Frank C. 

### Rothen
VP-Nuclear work Services 

### Type Title;

_ July 1, 1999 Date;

_

Issued as 

### a**fina~sent** order

Protection on

## a~ Ztj

CITY OF WATERFORD LAND RECORDS



### MAILED**CERTI~IED ~~IL,**  

### RETURNRECEIPT REQUESTED

Certified Document of the Commissioner of Environmental

I 1999.



### 9