--· 

-~ STATE OF CONNECTICUT 

DEPARTl\1ENT OF ENVIRONl\1ENTAL PROTECTION 

STA IE OF COl\TNECTICUT 

VS. ORDER NO. 1494 

MODIFICATION NO.2 

THE COl\TNECTlCUT LIGHT 

AND POWER COMPANY 

CONSENT ORDER 

ln the matter of a consent order between the Commissioner of Em·ironmental Protection 

("Commissioner'') and The Coru1ecticut Light and Power Company ("Respondent"). 

WHEREAS. the Commissioner and Respondent. having agreed to the terms and conditions 

set forth in Consent Order No. J 494 issued on October I 5, 1996, and the Consent Order No. 

1494 Modification issued on May 14, 1997. do now. by mutual agreement. modify said Consent 

Order as follows: 

J. Exhibit 2 to Consent Order No. i 494 is deleted in its entirety and the attached 

docl.Jrp em titled ''Credit Trading for Sources wi1h Irregular NOx Emissions", 

revised November 5. 1997. is substituted in lieu thereof. 

2. Parasraph B.l.c. is deleted and the following is substituted as a new paragraph 

B.J.c: 

Respondent's Initials: 

ln accordance with the Departmem of Environmental Protection's Credit . 

Tradingfor Sources with Irregular NOx Emissions policy, dated July 18, . 

1995, prior to the beginning of the 1997 ozone season, for use during the 

1997 ozone season, Respondent shall have in its possession 783 tons of 

ERCs. l f such ERCs are not in Respondent's possession prior to use, the 

number of ERCs re.quired shall double. During the 1997 ozone season, the 

Cos Cob and South Meadow Internal Combustion Units (JCUs) will be 

restricted in use to no more than 16 hours of operation per day, and the 

Branford, Devon, Frankli.r. Drive, Middletown, Montville, Torrington 

Terminal, Tunnel and Norwalk ICUs will be restricted in use to no more 

than 1 2 hours per day. 

l n accordance with Exhibit 2, prior to the beginning of the 1998 ozone 

season, for use during the 1998 ozone season, Respondent shall have in its 

possession the greater of: 1) the total anticipated excess NOx emissions in 

C. Date: f/!{)/7tf I 

(Printed on Recycled Paper ) 

79 Elm Street • Hutford, CT 06106 · 5127 

hup ://d cp .state. cl. U£ 

An Equal Oppor1uniry Employer 
THE COJ\TNECTlCUT LJGHT 

AND PO\VER COMPANY 

2 CONSENT ORDER NO. 1494 

MODIFICATION 

tons for the entire ozone season (mass basis); or 2) the maximum 

estimated excess NOx in pow1ds per day divided by 3 divi.ded by 13 

pounds per day per ton (peak (daily rate) basis). The W1de~ ying emission 

rates, units, and hours of operation set forth in Exhibit I may be modified 

only after the consent of the Commissioner by wrinen modification of this 

Order. 

3. Paragraph B.2.a. is added as follows: 

On January 7, 1998. February I 0, 1998, and March 6, 1998, Respondent submitted 

documents to the Commissioner, for his review and approval, representing the creation of 

234 tons ofERCs. excluding the ERCs suitable for conversion to allowances for use 

under the proposed . lOx Budget Program, from its Norv-.'alk Harbor, Montville, and 

Middletown Stations during the 1997 ozone season(" I 997 ERCs"). Ten (1 0) percent of 

the 1997 ERCs have been retired and permanently removed to assure a benefit to the 

environment. If the Commissioner does not accept for use any, or a portion of the 234 

tons of 1997 ERCs, Respondent shall provide and retire the balance ofERCs needed 

within fifteen (15) days ofwrinen notification from the Commissioner, such that the total 

of 1997 ERCs plus approved ozone season ERCs is equivalent to the ERCs required for 

the 1998 OZ0}1e season as calculated in paragraph 2 above. If ERCs are not in 

Respondent's possession prior to use, the number ofERCs required shall double. 

All other terms and conditions of Consent Order no. 1494 issued by the Commissioner acting 

under Chapter 446c. Sections 22a-6, 22a-1 71, 22a-J74, 22a-176, 22a-177 and 22a-178 of the 

Connecticut General Statutes shall remain in effect. 

Respondent's Initials: Date: 
/ 

THE CONNECTICUT LIGHT 

AND PO\VER COMPAN'l'' 

'"' ,) CONSENT ORDER NO. 1494 

MODIFICATION 

-·· The COimecticut Light and Power Company hereby consents to the entry of thi~..modification to 

tbe Consent Order without further notice. 

TypeName: R. G. Chevalier 

Type Title: Vice President 

Entered as a modification ~.fr:!n Order of the Com 

numbered 1494 this (; day of _:....__:=l-.::r---1 

Anhur J. Rocque, 

Commissioner 

TO\VNS/CITIES OF Branford, Greenwich. Torrington, 

Milford, Middleto·wn, Montville. Hartford, Preston. Norwalk 

LAND RECORDS 

MAILED CERTIFIED MAIL 

RETURN RECEIPT REQUESTED 

Certified Documem No. 0 6 2 6 54 4 9 6 
NO . 2 

REVISED 111519 7 

Credit Trading for Sources with Irregular NOx Emissions 

The following outlines the Department's concerns and methodology for dealing with NOx 

compliance pursuant to §22a-174-22(j), Regulations of Connecticut State Agencies 

("Regulations"), emission trading for "peakers" and other somces that ha.ve peak emissions that 

are substantially higher tl1an their average daily emissions. For pw-poses of this protocol, 

peaking units are defined as sources ·with peak daily NOx emissions greater than three times their 

average daily emissions during the ozone season. 

The basic concept of the trading program is that somces with excess NOx emissions (a rate that 

exceeds the rate limits in the Regulations) may obtain NOx emission reduction credits ("ERCs") 

from sources that have "over-comrolled" their NOx emissions. Although typical somces can 

obtain credits on a mass basis (one ton ofERCs to offset one ton of excess emissions) with an 

acceptable environmental omcome, sources with large variations in emissions from day to day 

pose an additional problem for ozone attainment planning. 

The most common peaking units or "peakers" are electricity generating units that run during 

times of high electricity consumption. Electricity demand is often the highest during hot, humid 

days of the swnmer when the potential for ozone formation is also high. Peakers frequently have 

high emission rates ~ To the extent that these units produce emissions at exactly the time when 

emissions need to be reduced to limit ozone formation, allowing peakers to continue to comply 

with new rate limits through the use of ERCs on a ton-for-ton basis will exacerbate this effect. 

On the other hand, if it can be demonstrated that the ERCs being used by peakers were generated 

on a comparable basis (i.e., during days of high ozone potential), then ton-for-ton use by peakers 

would be appropriate. 

The full impact of the NOx emissions from these types of faciljries during summer operation 

must consider temporal variability as well as mass of excess emissions. Any ERC trade must 

consider equivalency to the NOx reductions that control equipment would produce on an ozone 

day on both a temporal and a mass basis. The protocol below places appropriate requirements 

on peaking units to reflect the greater impact ofNOx emitted under this type of usage pattern. 

Attaclunent 1 provides a detailed example ofthis issue. 

NOx Emissions Reduction Credit Use Computation For Peak.ers 

• Peaking units are only considered to be a temporal issue for the ozone season months. 

• All excess NOx emissions during the winter (non-ozone season) need only be offset by 

ERCs on a mass basis. 

• Prior to each ozone season there will be a prospective calculation to determine how many 

tons of ERCs must be "on hand" during the ozone season. A retrospective calculation 

will determine how many ERCs were actually "used" during the ozone season. 

(Printed on Recycled Ptpcr ) 

79 Elm Street • Htrtford, CT 06106 · 5127 

('i'\ f'lu.o)._ Opportunity Employer 

1494 
.' 

.; POWER COHPANY 

For ERC use during rhe o:;one season: 

EXHIBIT 2 

2 

MODIFICATION NO . 2 

1. Prospective calculation determines the number of ERCs that must be provided for the 

ozone season. (Beginning in 1996, the ERCs must be in place no later than June 1.) 

,· 

ERCs required for the ozone season shall be calculated based on:.(a) a mass basis (total 

anticipated excess NOx emissions over the ozone season) and (b) a peak-day basis 

(maximum excess emissions for any day during the ozone season). Sources ·will be 

required to provide credits equal to the gr eater of the amount calculated on a mass or 

peak-day basis. The timing of actual credit provision ·will be governed by the terms of 

the specific trading order issued for that source. 

(a) Mass basis: ERCs required will be equal to the total number of tons of anticipated 

excess NOx emissions over the entire ozone season, calculated in the same 

manner used for other sources using ERCs (i.e., including any discounts). 

(b) Peak (daily rate) basis: ERCs (in tons) required v-.rill be calculated by dividing 

one-third of the rnaxirrnun daily excess emissions* (in pounds) by 13 

pounds/day/ton: 

ERCs required. (tons)= [(Maximum Estimated Excess NOx in lbs.) + 3] + [13 lbs./day/ton] 

*Where maximum daily excess NOx emissions are the difference between the 

m.aximum estimated hours of operation per day at the full-load-emission-rate and 

95% oftbe allowable NOx emissions under Section 22a-174-22(e) ofthe 

Regulations. 

2. Retrospective calculation ·will determine the actual credit use and the ERC surplus, if any. 

At the end ofthe ozone season, the calculations required in item 1 above v-1).11 be repeated 

. using (a) the actual total excess emissions for the ozone season, and (b) the maximum 

actual excess NOx emissions on any of the days projected by the Corrunissioner to be 

"moderate to unhealthful", "unhealthful", or "very unhealthful". The actual "ERCs 

required" will be the gr eater of the ERCs calculated on the basis of total mass or 

maximum (peak) day. To the extent that the number of ERCs used to offset peak day 

emissions exceed the total mass of excess NOx emissions for the ozone season, the 

remaining mass value of such ERCs may be carried forward for use in the winter (nonozone season). Any unused ERCs may be carried forward until May 1, 1999, except as 

may be limited by the trading agreement and order, or by regulation. 

Respondent ' s Initials' ~ Date : 
---- er· nrtec - ·r 11 >M ·o t td 

ONNECTICUT LIGHT 

.t' POV.TER COMPANY 

8 «lr?Cr:m--.w~ ncr= 

EXHIBIT 2 

A ttaclz ment 1 

ERC Calculation for Peaking Units 

CONSENT ORDER NO. 1494 

MODIFICATION NO. 2 

·' 

Unless it can be demonstrated otherv.rise, ERCs are assumed to be created by relatively small 

daily reductions in NOx emissions over the course of an entire ozone season (153 days). The 

average daily NOx emissions reduction represented by one ton of credit i.s 13 poW1ds/day 

calculated as follows: 

(1 ton) x (2000 pounds/ton) -:- 153 days= 13 pounds/day/ton 

Thus, an ERC (ton) would be equivalent to a reduction in NOx emissions of 13 pounds/day. 

EXAMPLE. If a "peaking" source were to emit one ton of excess NOx per day when operating, 

but only operates for five days during the ozone season, the ov.'Iler/operator of the source would 

nominally need to obtain five tons ofERCs. However, those ERCs are likely to have been 

created by relatively small daily reductions in NOx emissions over the course of an entire ozone 

season (153 days). In this example, assuming a purchase offive tons ofERCs, that calculates out 

to a dailv NOx reduction of approximately 65 pounds. 

(5 tons x 2000 pounds/ton)-:- 153 days= 65 pol,lD.ds/day 

Clearly, on any day ·that the "peaking" unit operates, there is much more excess NOx emissions 

that will not have been offset, on the order of 1,935 pounds: 

(1 ton x 2000· pounds/ton)- ( 65 pounds credit) = 1,935 pounds excess NOx emissions 

While the total amount ofNOx emitted would be controlled on a seasonal average basis, on the 

"peaking" day there would be a potentially significant increase in NOx emitted, and thus an 

increase in potential ozone creation. In order to achieve a commensurate reduction in ozone 

creation potential for peakers, an adjustment in the calculation of required ERCs is needed. One 

approach would be to require ERCs in a quantity that would ensure that the daily average 

reduction represented by those ERCs would equal the maximum daily excess NOx emissions 

from the peaking source on any day that it ran. On this basis, a peaking source with a maximum 

24-hour excess NOx emission of one ton would be required to purchase 153 tons ofERCs. 

1 (ton)/d.ay X 153 days/season= 153 tons 

This 153 tons ofERCs would be adequate to "offset" excess emissions of one ton per day for as 

many days as the source operated during a particular ozone season. This has been deemed to be 

unduly stringent, given some diversity in operation of these sources. In light of the foregoing, 

this requirement is adjusted do'V.'Ilward by two-thirds. 

NovemberS, 1997 "0:\PITBLADO\R.EPORTIPEAK.ERS 

Respondent's Initials' ~ Date: