Exhibit 3

STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State of Connecticut

and

Norwalk Power LLC

Trading Agreement

and Order No. 8184

Whereas, the Commissioner of :Snvironmental Protection ("Commissioner") and

Nor-.....alk ~ower LLC. ("Nptl) agree. that i~ is ~n. t;.he. public int~rest tha~ they work

coooeratlvely to ~morove tne a~r guallty wltnln the State O~ COPJleC~lcut and

thar. the use of emission reduction eredl.t· ("3:r?C") trading to reduce nitrQgen oxide ("NOY.") emissions will achieve this =esult in a timely and cost·effecti,e

manner:

A. At the request and with the agreement of NP, the Commissioner finds the

following:

1. N? is an exemot wholesale electric generating cortr.:lany with its

orincioal clace of business in Sewickley, Pennsylvan~a. On or before-Dece~ber 31, 1939 NP will Durchase from The Connecticut Light and Power Company and ~hen own one (1) piece of fuel-burning equipment ("peak~ng unit~) iden~ified.in.Table 1, of~~his Tra~ing Agreement ana Order. IhlS peaklng un1t 19 a co~~us~~on turb1ne.

2. On or before December 31, 1999 N~G Norwalk Harbor Ooerations Inc.

will operate the peaking unit identified in Table I-of this Trading Agreement and Order at N?'S facility.

3. Official U. S. Environmental Protection Agency ("EP.~") Reference

Method 73 scack testing Derformed on the date indicated in

Table I, resulced in a NCx emission rate set forth in Table 1.

Table 1

"" - HOx EMISSION RATE: AND ?.ACT LIMIT (lbs/M!Gtu)

?eaki:J.g ?U:::L ?LER HOx RAeT Stack Stack Test Date of

Unit (lbs/MM3tu) Rate Test Rate Rate Stack Test

(lbs/MM3tu) (?pmvd) (lbs/MM3tu)

/ ••No;"walk other 0.52 I 0.289 I 113.5 I 0.47 I 7/10/96

:lar.oor 10 oil •

4.

5.

The emission rate for the peakinq unit and fuel sgecified in Table 1

is in excess of Section 22a-174-22, Table 22-2, OI the Regulations of Connecticut State Agencies ("Regulations"), NOx emission ra~e

limits (Reasonably Avallable Control Technology "R~CT").

?ursuant to Section 22a-174-22 (b) of the Regulations, the oeaking unit is subject to Sections 22a-17~-22(d) through (k) of the

Regulations, pertaining to the control of NOx emissions.

6. In accordance with Section 22a-174-22{j) of the Regylations, NP

proposes that for the pe~king unit identified in Table 1, N? shall

I

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Norwalk ?ower LLC Trading Agreement

and Order No. 8184

use ERC trading when burning "other oil", as th=.t term is defined in

Section 22a-174-22 of the Regulations.

7, ?ursuant to the Department of ~nvironmental Protection's ~Credit

Trading ror Sources with Irregular NOx Emissions~ policy, with a

revisea date of November 5, 1997, attached hereto and inco~orated

by reference into this Tradinq Agreement and Order as Exhiblt 1, the

peaking unit has peak daily NOx emissions greater than tpxee times

the average daily-emissions during the ozone season a~d is therefore

considered a source with irregular NOx emissions.

8. 3ased on DE? anproved stack test data, it has been determined that

the peaking uniE's emissions will not meet the aoplicable reauirements of RACT contained in Section 22a-174:22 of the

Regulations. NP proposes to use a Full Load Emission Rate ("FLER") identified in Table i for the purposes of calculating ERCs required.

9. NP intends to continue acquiring approved ERCs as needed.

10. Approved ERCs are defined for the puroose of this Trading Agreement

ana Order as those for which the Commissioner has provided written

authorization for use in comnliance with Section 22a-174-22 of the ~egulatio:1s. -

3. The Commissioner, in accord~~ce with the provisions of this Trading Agreement and Order, and Dursuant to Sect10n 22a-174-22 (j) of the

Regulations hereby allows-NP to comply with Section 22a-174-22 of the

Regulations through use of ERC trading referenced in Section A( herein, to

acnieve the nitr~en oxide emission reduction reauired by Sect10n 22a-174-

22 (d) (2) of the Regulations. -

C. With the agreement of NP, the Commissioner, acting under Co~~ecticut

General Statutes Sections 22a-5, 22a-171, 22a-174, 22a-l76, and 22a-177, orders NP as follows:

1. Uoon issuance of this Trading Agreement and Order NP shall comoly d~ring operation of the peak1ng ~~it with the FL3R show~ in Taole 1

aDove.

2.

3.

4.

5.

On and after the date which NP purchases the neaking unit identified

in Table 1 of this Trading Agreement and Order, N? shall have in its

oossession sufficient apnroved ERCs to meet applicable aACT

requirements and the requirements of this Traaing Agreement a:1d

O=aer.

On and after the date which N? purchases the oeaking unit identified

in Table 1 of this Trading Agreement and Order~ NP shall, on a daily basis, document =.nd recorB tne·amounts of all ~uel used by the

oeaking unit each day and the number of ERCs used for the ozone

season (from May 1 tnrough September 30 of each year) and non-ozone

season (the remainder·of the year).

On and after the date which NP purchases the peaking unit identified

in Table 1 of this Trading Agreement' and Order, pursuant to Section

22a-174-22{j) of the rtegulat10ns, NP shall aCQuire from The

COIh.ecticut ~ight and Power Compa~y sufficient approved non-ozone

season ERCs In order to meet aoo11cable R~CT regulrements and the

requirements of chis Trading Agreement and Order for the o~eration

of the peaking u-~it ident~f2ed in T~ble 1 of this Trading Agreement and Order durlng the montn of Dece~Der, 1999. .

Exceot as provided in paragraph C.4. of this Trading Agreement and

Order( on and after the dace which NP ourchases the oeaking unit

identlfied in Table 1 of this Trading Agreement and Order, pursuant to Section 22a-17~-22(j) of the Regulatlons~ NP shall acauiie from

The Co~_~ecticut Light and Power Comoany sufticient approved ozone

and non-ozone season ~~CS in order to meet applicable·RACT

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NOn-Talk Po·""er LLC Trading Agreement

and Order No. 8184

reauirements and the requirements of this Trading Agreement and

Order for the following montn's operation.

6. In accordance with Exhibit 1 of this Trading Agreement and Order,

ozone season ERCs for use during the ozone season shall be purchased by NP pri·or to the beginning of the ozone season.

7. On and after the date which NP ourchases the oeaking unit identified

in Table 1 of this Trading Agreement and Order, NP shall maintain

and orovide the records requ~red by paragraoh C.3. of this Trading Agreement and Order in accordance with tne rollowing and Section

22a-174-4 of the Regulations, and shall:

a. Have in its possession sufficient aooroved ERCs for the current

daY j based on the following calculations (described also in cxh~bit 1);

At all times (mass calculation):

ERCs (in tons) ; (((FLER in lbs/~~3tu) - (0.95 x NOx ~~CT in

lbs/MM3tu)) x (actual fuel use in lbs!MM3tu)) + 2000 pounds/ton

During the ozone season only (peak day calculation) :

the maximum actual excess NOx emissions (in los) on any of the

days oroiected by the Commissioner to be ~moderate to

unnealthrul,H ~~,hea!thfu!," or "very ~-healthful " divided by 3 and then divided by 13 (with the result in tons~ :

ERCs (in tons) : [(Maximum excess NOx in lns) + 3J + [13 lbs/day/tonl;

b. At a minimum, adjust upwards by lOOt the ERCs required if E~Cs

are not in NP's possession prior to use;

c. As described in By~ibit 1 of this Trading Agreement and Order,

to the extent that ERCs used to offset on a Deak day basis

during che ozone season exceed the total mass excess emissions, remaining ERCs may be used in the non-ozone season in the same

or subsequent years until May 1, 2003;

d. Document and record daily fuel use, excess NOx emissions and, during the ozone season, the ozone classification as forecas~ed

by the Commissioner on the previous day;

e. No later than March l( 2000, 2001, 2002, 2003 and 2004, include

with its annual emiss~ons reoort to the Com~issioner, E~C9 used

(calculated as described'in section C.7.a. above), by ozone and

non-ozone seasons, for the previous calendar year;

f. f~tain th~ re~ords a~d.suppo~t~~g documentation a~ descriped in ~n~s sect~on ~or a m~n~mum OI I~ve years, commenc~ng on tne

date sucn records a~e created; .

g. Maintain documentation to attest to the fact that ERCs used

during the ozone season were generated during the ozone season.

The ozone season is from May 1 through Seotember 30 in any calendar year. G~nerator certificat~on or this fact shall be

sufficient; and

h. Provide the records soecified above to the Commissioner within

thirty f30) days of receipt of a written request from the Comm~ssJ.oner.

-)-

8. Pursuant to the intent of Section 22a-174-22a(f) (4) of the

Regulations, NP may, for a budoet source, use allowances acquired

pursuant to. the PFovi~~ons of ~~ction.22a-174-22a of ~he Regul=tio~s to comoly w~th SUDseCCJ.on (e) or Sect~on 22a-174-22 or the P.e~ulations pursuant to the provisions of subsection (j) of Section

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Norwalk ?ower LLC Trading Agreement

and Order No. 8184

9.

10.

11.

12.

13.

22a-174-22 'of the Regulations as long as NP remains an owner of that

budget source, for Qurposes of this Trading Agreem~nt and Order.

Pny allowance used ror compliance with subsection (e) of Section

22a-174-22 9f the Regula~ions shall be subje~t to.all ~estrictions

and/or requlrements appl1cable to ERCs con~alned 1n th1S Trad2ng Agreement and Order and/or Section 22a-174-22a of the Regulations.

The terms and conditions established by this Trading Agreement ~d

Order shall become effective on the date NP purchases the oeaking unit identified in Table 1 of this Trading Agreement and Order, and

upon issuance of this Trading Agreement and Order.

No later than May 1, 2003, NP shall comoly with the requirements of

Section 22a-174-22(d} (2) of the Regulations. However, after full

orogram review of this and other Trading Agreements and Orders and, if determined to be aoorooriate, the Commissioner may grant a

written extension of this-Trading Agreement and Order.

Defip.iq,ons. As used in this o:::-der, "Commissioner" means the

CommlSS10ner of Environmental Protection or an agent of the

Commissioner. "Other oil" means a fuel that is li~id at standard

conditions and is not residual oil. "~esidual oil' means ~~y fuel

oil qf ~o. 4, No.5, or No. 6 grades, as defjned by Co~ercial

Stanaard. C.S. 12-48. "Ozone season" means tne Der10d rrom May 1

through SeDtember 30 in any given calendar year": "ISsuance" means

the date this Trading Agreement and Order is deoosited in the u.s.

Mail or the date it lS personally delivered, whIchever is earlier.

Ngt~f~caa~sn of noncompliance. In the ~vent that NP becomes aware

t ac ~t not or may not comoly, or d~d not or may not comoly on

time, with any reauirement of th1S Trading Agreement and Order-or of

any document required hereunder, NP shall br telephone immediately nocifv the 3ureau of Air Management and sha 1 take all reasonable.

steos·to ensure that any noncomoliance or delay is avoided or, if

unavoidable, is minimized to the greatest extent oossible. NP shall

also notify the Com~issioner in writing within ten days of becoming

aware of tne noncomoliance or potential noncomoliance stating the

date, time, and duration of che noncomDliance,-the reasons for the

noncomoliance or delay and all activitIes which N? and its agents, e~ployees an¢ representatives ~?ok to avoi¢ or repair the results of

tne noncomollance and orevent ~ne noncomollance, and Drooose, ror

the review· and written-aooroval of the Commissioner, aates by which

comoliance will be achieved. NP shall comoly with any dates which

may-be aooroved in writing by the Com~i3sioner. Notification by N?

shall not-excuse noncomol~ance or delay, and the Commissioner's

aooroval of any comoliance dates oroDosed shall not excuse

noncomoliance or delay unless soecifically so stated by the

Commissioner in writing. Nothing herein shall negate NP's

obligation to comply w~th Section 22a-174-7 of the Regulations. To

the extent that the orovisions of Section 22a-174-7 are inconsistent

with the provisions of this Trading Agreement and Order, the more stri~gent-of the provisions in the Trading Agreement and Order or Sect~on 22a-174-7 shall control.

Certificat~Qn of 90Ruments. P~y document, inclUding Dut not limited

to any not~ce, Wh1C. is required to be submitted to the Commissioner

under this Trading Agreement and Order shall be signed by the

resoonsible corporate officer of NP or a duly authorized

representative of such officer, as those terms are defined in

Section 22a-430-3(b) (2) of the Regulations, and by the individual or

individuals resoonsible for actually preoaring 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 resoonsible for obtain~ng· the information to

determine that the information is true, accurate, and complete, and

each of whom shall certify in writing as follows:

"I have oersonally examined and am familiar with the information

submittea in this document and all attachments thereto, and I

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Nor~aly. Power LLC Trading Agreement

and Order No. a184

14.

certify that based on reasonable investigation, including my inquiry of those individuals resoonsible for obtaining the informat~on, the

submitted information is-true, accurate and comolete to the best of

my knowledge and belief. I understand that any- false statement made

in the submitted information may be punishable as a criminal offense

under Section 22a-17S of the Cop~,ect~cut General Statutes or, in

accordance with Section 22a-6 of the Connecticut General Statutes, under Section 53a-lS7b of the Connecticut General Statutes, and in

accordance with any other applicable statute _"

F~nat Aoreement ang Qr~er! This Trading Agreement and Order is the f~na_ agreement an or er by and between the Commissioner and NP

with reSDect to the matters addressed herein, and shall not be

modified-without the written agreement of both parties.

15. False statements. Any false statement in any information submicted

pursuant to Ch~s Trad~ng Agreement and Order may be punishable as a

criminal offense under Seccion 22a-17S of the CO~Jlecticut General

Statutes or, in accordance with Section 22a-6, under Section

53a-157b of the Connecticut General Statutes.

16.

17.

Notlle of tr~ns~:r; liability of NP and Q8h~rs! Until NP has fully

como ~ea w~c c ~s Traa~ng Agreemenc andr er, NP shall notify the

Commissioner in writing no later than fifteen (15) days after

transferring all or any portion of the facility, the operations, the

site or the business wnich are the subject of t.his Traaing A~reement

and Order, or obtaining a new mailing or location address. .~y

license tr~~sfer shall be conducted ~n accordance with Section 22a60 of che Connecticut General Statutes. NP's obligations ~,der this

Trading Agreement and Order snafl not be affecte~ ~y t~e passage of t~tle to any property to any otner person or mun~c~pal~ty.

CP~Iss~Qner's powers. Nothing in this Trading Agreement and Order

sna a~tect the Co~~~ssioner's authority to inst~tute any oroceeding or take any other action to orevent or abate v~olations of law, orevent or abate pollution, recover costs and natural

resource-damages and to imoose penalties for violations of law

which are willfui or criminally negligent or for which penalcies have not been s~ecifically orovidea in this Trading Agreement and

Order, including but not limited to violations of any oermit issued

by the Co~~issioner. If at any time the Commissioner aetermines

tnat the actions taken bv NP pursuant to this Trading Agreement and

Order have not fully achieved-compliance with Section 22a-174-22 of

the Regulations, the Commissioner-may institute any proceeding asainsc NP and/or require NP to undertake further ~nvestigation or

further action. .

18. SP's Oblio~tiOrs und&, l~w .. Noth~ng in. this Trading Agre~ment rqer snal re ~eve o~ otner ool~gat~ons ~~der appl~caole

feoeral, state and local law.

and

19.

20.

gccess to re~Q~ds and facititv, ~~y re?resentative of the :ep~r~ment or. ;nv~ronmenca: ?rotect~on ~ay. enter and. ~n!?pect the rac~l~ty and ~nspect and copy records w~tn~n normal Dus~ness hours

without orior noEice for the ourooses of monitoring and enforcing the actions required or allowed oy this Trading Agreement and Oraer.

~o effe~t on r~abts of other per~9ns. This Trading Agreement and rd~r.sna+l.ne~th~r create ~or a~~ect any. rights 9:<: persons who o~ mun~c~pal~t~es wh~ch are not part~es to cn~s Trad~ng Agreement ano

Order.

21. go Creation of Property Riahts: ,This.~!ading Agreemept and Order

oes noe create any property r~gnts w~cn respect co tnes: ERCs.

-5- Date

22. Notic~ tp Commissioner Qf ch~o:s. Within fifteen (15) days of the

date N? oecomes aware or a c noe in any information submi~ted to

the Co~~issioner under this Trading Agreement and Order, or that any such information was inaccurate or misleading or that any relevant

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Norwalk Power LLC Trading Agreement

and Order No. 8184

23.

information was omitted{ NP shall submit the correct or omitted

information to the Comm~ssioner.

S~bm~ssi9n of dOCUIDaPts, Any document required to be submitted to

cne omm~ss~oner un er chis Tradi~g Agreement and Order shall, unless otherwise snecified in writ~ng by the CO~~is5ioner, be

directed to: .

Mr. David Jawin

Department of Environmental Protection

Bureau of Air Manaqement Comoliance and Fie!d Ooerations Division

Emissions and Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106

Initials ~~ -5- Date ~qq
NorHalk Power LLC Trading Agreement

and Order No. 8184

NP consents to the issuance of this Trading Agreement and Order without further ~otice .. The u~dersigned certifies that he/she is fully authorize~ co enter ~nto th~s Tradlng Agreement and Order and to legally blnd N? to tne terms and

conditions of che Trading Agreement and Order.

Signature:

Norwalk Power LLC

~tt·M,,~ '11~

Type Name: Robert S. Evans II

Type Title:

Executive Director, Environmental Services

!'JAG Ene rev , I DC •

Date:

) Arcnur J. rtocqu~

commissiO~ .

CITY OF NORW.:IU,K

L.!l.ND ~=:CO:mS

rssued as a final consent orde~the Commissioner

~nvironment.l Protection on VI1w-<3'I'l- 20 O.

~~~!L=:D C3RTIFI3D YL~ILt

?3TulL~ ~SCSI?T R2QUESTED

Certified Document

Exhibit 1

Trading Agreement and Order No. 8184
STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

REVISED 11/5/97

Credit Trading for Sources with Irregular NOx Emissions

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

compliance pursuant to §22a-174.22G), Regulations of Connecticut State Agencies

("Regulations"), emission trading for "peakers" and other sources that have peak emissions that

are substantially higher than their average daily emissions. For purposes ofthis protocol,

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

average daily emissions during the ozone season.

The basic concept ofthe trading program is that sources \\lith excess NOx emissions (a rate that

exceeds the rate limits in L1.e Regulations) may obtain NOx emission reduction credits ("ERCs")

from sources that have Ilover-controlled" their NOx emissions. Although typical sources can

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

acceptable environmental outcome, sources with large vatiations in emissions from day to day

pose an additional problem for ozone attainment planning.

The most co:nmon 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 ofthe summer when the potential for ozone formation is also high. Peakers frequently have

high errtlssion rates. To t.1.e extent that these u..-uts 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 ofERCs on a ton-for-ton basis will exacerbate this effect.

On the ot1:ler hand, ifit 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 ofthe NOx emissions from these types of facilities during summer operation

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

consider equivalency to the NOx r~uctions 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 pattem.

Attach.i'uent I piOvides a detailed example of this issue.

NOx Emissions Reduction Credit Use Computation For Peakers

Peaking unit's 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 detennine how many

tons ofERCs must be lion hartd" during the ozone season. A retrospective calculation

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

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2

For ERe use during the ozone season:

1. Prosoective calculation determines the number ofERCs that must be provided for the

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

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 ~reater ofthe amount calculated on a mass or

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

specific trading order issued. for that source.

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

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

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

(b) Peak (daily rate) basis: ERCs (in tons) required will be calculated by dividing

one·tl'ilrd of the maximum daily excess emissions'" (in pounds) by 13

pounds/day/ton:

ERes required (tons) = [(Maximum Estimated Excess NOx in Ibs.) + 3J + [13 Ibs./day/tonj

"'Where maximum. daily excess NOx emissions are the difference between the

maximum estimated hours of operation per day at the full-Ioad-emission-rate and

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

Regulations.

2. Retrosoective calculation will determine the actual credit use and the ERe surplus, if any.

At the end of the ozone season, the calculations required in item 1 above will be repeated

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

actual excess NOx emissions on any ofthe days projected by the Commissioner to be

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

required" will be the greater ofthe ERCs calculated on the basis oftotal mass or

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

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

remaining mass value ofsuch ERCs may be carried forward [or use in the winter (nonozone season). Any unused ERCs may be carned forward until May I, 1999, except as

may be limited by the trading agreement and order, or by regulation.
3

Exhibit 1

ERe Calculation for Peaking Units

Unless it can be demonstrated otherwise, 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 is 13 pounds/day

calculated as follows:

(1 ton) x (2000 pounds/ton) + 153 days 13 pounds/day/ton

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

Ex..4.J\1PLE. If a ·peaking" source were to emit one ton of excess iOX per day when operating,

but only operates for five days during the ozone season, the owner/operator of the source would

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

creat~ 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 calculate!> out

to a dailv NOx reduction of approximately 65 pounds.

(5 tons x 2000 pounds/ton) + 153 days = 65 pounds/day

Clearly, on any day that the "pea.lcing" 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 of NOx emitted would be controlled on a seasonal average basis, on the

·pea.lcing" day there would be a potentially significant increase in NOx emitted. and thus an

increase in potential ozone creation. 1., order to achieve a commensurate reduction in ozone

creation potential for peakers, an adjustment in the calculation ofrequired ERes is needed. One

approach would be to require ERCs in a quantity that would ensure that the daily ave~'age

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

from the pea.1::ing 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 of ERCs.

1 (ton)/day 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 ofthese sources. In light oft.~e foregoing,

Ibis requirement is adjusted downward by two-thirds.