:SlATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

51.!l.TE 0: CONNSCTICi.iT

P'.ND

NO~T~SAST NUCLSAR SNERGY

COM?Jl.NY

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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 nuclear powered 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 attached hereto 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, and may be required in the future, to perform scheduled

testing of the emergency generators on days for which the

Conunissioner has forecast that ozone levels .....ill be "moderate to

unhealthful", "unhealthful" or "very unheal thful" .

4. Due to the above mentioned testing requirement, pursuant to

Section 22a-174-22(b) (5) of the Regulations of Connecticut State

Agencies ("Regulations"), eight of the emergency generators are

subject to Sections 22a-l74-22(d) through (k) of the Regulations

pertaining to the control of NOx 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 of NOx of less than 274

Ibs/day. Because of this 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 :lId cp.Slal c.e!.uS

A.n Equ.f;.l Oppar:u.niry Employer
NORTHEAST 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-174-22 te)

of the Regulations and do not require emissions trading to

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

7. ?ursuant to the Department of Environmental Protection's policy

statement entitled; "Credit Trading for Sources rlith Irregular

NOx Emissions H , 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) of the

Regulations, NNECO acquired an initial five tons of approved

ozone season ERCs and ten tons of non-ozone season ERCs. In

December of 1997, NNECO purchased an 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

provided written ~uthorization for use in compliance with

Section 22a-174-22 of the Regulations.

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

Agreement and Order, and pursuant to Section 22a-174-22(j) of the

Regulations, hereby allows NNECO to comply with Section 22a-174-22 of

the Regulations through use of ERC trading referenced in Section A,

herein, to achieve the nitrogen oxide emission reductions required by

Section 22a-174-22(d) (2) of the Regulations.

C. With the agreement of NNECO, ~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 of equipment. Upon

issuance of this Trading Agreement and Order, and continuing

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NORT~EAST ~-uCLE~~

EN"RGY COMPANY

TRADING AGR~3M~NT p_~ ORDER NO. 81S2A

until May 1, 2003, NNECO shall comply during operation of each

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 of all 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 of the Regulations and,

until May 1, 2003, shall:

a. Have in its:possession sufficient approved ERCs for the

current day, based on 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 divided by 13 (with the result in

tons)

[(Maxim~~ excess NOx in Ibs) + 3) +

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ERCs (in tons) ""

[13 lbs/day/ton]

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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 operated x 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 projected by the Commissioner to be

"moderate to unhealthful," "unhealthful," or "very

unhealthful," divided by 3 and then divided by 13

(wi th the result in tons) :

ERCs (in tons)~[(Maximum excess NOx in lbs) + 3) + (13

lbs/day/ton)

As described in Exhibit 2 of this Trading Agreement 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 may be 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 season months in the

previous calendar year, as follows:

ERCs (in tons) = [actual hours operated x 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 if ERCs 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;

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NORT~~AST NUCLEP3

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

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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 of becoming

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 and prevent 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

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NORTHEAST NUCLEAR

ENERGY COMPA..~-Y

TR~ING AGREEMSNT ~~u ORDER NO. B152A

or delay ~~!ess specifically so stated by 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 Trading Agreement and Order. the more

stringent of the provisions in the Trading Agreement and Order

or Section 22a-174-7 shall control.

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5. CertificatiOn of documents. P~y document. including but not

limited to any notice, 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 of Respondent or a

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 actually preparing such document, each of whom

shall examine and be 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 of whom shall certify in w~iting as follows:

"I have personally examined and am familiar with the information

submitted in this document and all attac~~ents thereto, and I

certify that based on 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 of my knowledge and belief. I understand

that any false statement made in the submitted information may

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 order by and between the Commissioner

and NNECO with respect to the matters addressed herein, ~~d

shall not be modified without the written agreement of both

parties.

7. False statements. Any false statement in any information

submitted pursuant to this Trading Agreement and Order may be

punishable as a criminal offense under Section 22a-175 of the

Connecticut General Statutes or, in accordance with Section

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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 complied with this Trading Agreement and Order. NNECO

shall notify the Commissioner in writing no later than fifteen

(15) days after transferring all or any portion of the facility,

the operat~~ns, the site or the business which are the subject

of this order, or obtaining 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 any property to any other

person or municipality. 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 to prevent or abate

violations of law, prevent or abate pollution, recover costs ~~d

natural resource damages, and to impose penalties for violations

of law which are willful or criminally negligent or for which

penalties have not been specifically provided in this Trading

Order, including but not limited to violations of any permit

issued by the Commissioner. If at any time the Commissioner

determines that the actions taken by NNECO pursuant to this

Trading Agreement and Order have not fully achieved compliance

with Section 22~-,174-22 of the Regulations, the Commissioner may

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 of Environmental Protection may enter the facility

and inspect and copy records within normal business hours

without prior notice for the purposes of monitoring and

enforcing the actions required or allowed by this Trading

Agreement and Order. k~y representative of the Department shall

comply with NNECQ's visitor security procedures. Any records

maintained pursuant to this Trading Agreement and Order shall be

made immediately available to any representative of the

Department upon request at the facility.

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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 of persons

who or municipalities 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 information was inaccurate or misleading

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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NORTHEAST NUCLEk~

ENERGY COMPJLtIJ'Y TRP~ING AGREEMENT P~D ORDER NO. 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

Type Title ; VP-Nuclear work Services _

Date July 1, 1999 ; _

Issued as a fina~sent order

Protection on a~ Ztj

CITY OF WATERFORD LAND RECORDS

MAILED CERTI~IED ~~IL,

RETURN RECEIPT REQUESTED

Certified Document

of the Commissioner of Environmental

I 1999.

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