STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

State of Connecticut

and

NRG Energy, Inc.,

Middletown Power LLC,

NRG Middletown Operations Inc.,

Montville Power LLC,

NRG Montville Operations inc.,

Norwalk Power LLC,

NRG Norwalk Harbor Operations Inc.

Connecticut Jet Power LLC

Trading Agreement

and Order No. 8300

WHEREAS, the Commissioner of Environmental Protection ("Comlnissioner") and NRG Energy, Inc. et

al. ("Respondents") agree that the Commissioner may issue a permit or order to allow emissions trading

in accordance with Section 22a-174-22(j) of the Regulations of Connecticut State Agencies

("Regulatio~as") as a method of compliance with Section 22a-174-22 of the Regulations:

A. At the request and with the agreement of Respondents, the Commissioner finds the following:

I. This Trading Agreement and Order supersedes Trading Agreement and Orders 8180 through

8184, 8251 and all subsequent modifications thereto.

2. Respondents own and operate electricity generation facilities in Connecticut ("facilities").

3. At the facilities, Respondents operate the emission units described in Tables 1-3 below, which

are subject to Section 22a-174-22 of the Regulations of Connecticut State Agencies

("Regulations") pertaining to the control of Nitrogen Oxide (NOx) emissions.

4. For the purposes of this Trading Agreement and Order, the following definitions shall apply:

Allowable Emission Limit (AEL): the applicable NOx emission limit set forth

in Section 22a-174-22(e) or Section 22a-174-22(f) of the Regulations

corresponding to the emission traits described in Tables 1-3 of this Trading

Agreement and Order

Allowance: CAIR NOx Ozone Season allowance originally allocated to a

CAIR NOx Ozone Season m~it, as defined in Section 22a-174-22c of the

Regulations, located in the State of Connecticut or a NOx allowance

designated specifically for compliance during Ozone Season comrol periods

and allocated to a CAIR NOx Ozone Season unit located in the State of

Colmecticut after the date of issuance of this Trading Agreement and Order.

(Printed on Recycled Paper)

79 Elm Street * Harfford, CT 06106-5127

www.ct.gov/dep

An Equal Opportunity Employer
NRG Energy, Inc., et al. 2 Trading Agreement and Order No. 8300

CAIR NOx Ozone Season unit: shall be as defined in Section 22a-174-22c of

the Regulations

Discrete Emission Reduction Credit (DERC): a unit that was generated and

approved by the Commissioner in accordance with a Trading Agreement and

Order issued by the Commissioner or generated and approved by the

Commissioner in accordance with a protocol submitted and approved pursuant

to Section 22a-174-38 of the Regulations. Such unit is equivalent to 1 ton of

NOx emissions and may be used for emissions trading in accordance with

Section 22a-174-22(i) of the Regulations, subject to the provisions of Part B of

this Trading Agreement and Order.

Full Load Emission Rate ("FLEW’): Nitrogen Oxide ("NOx") emission rate

corresponding to each emission unit described in Tables 1 and 3 of this Trading

Agreement and Order that the Respondents shall not cause or allow the

emissions of NOx from that emission unit to exceed; and that the Respondents

agree such FLER shall serve as the basis for determining Estimated DERCs

Required, Estimated Allo~vances Required, Actual DERCs required, and

Actual Allowances Required in accordance with this Trading Agreement and

Order.

Non-Attainment Area: means the geographic area which has been designated

as nonattainment pursuant to 40 CFR 81 in accordance with the provisions of

42 USC 7407 (Section 107 of the Act). Pursuant to 40 CFR 81.307, the

designated ozone non-attainment areas in the State of Connecticut are : the

Greater Connecticut, CT area and the New York-Northern New Jersey-Long

Island, NY-NJ-CT area.

CAIR NATS: "CAIR NOx Ozone Season Allowance Tracking System" as

defined in 40 CFR 96.302.

Ozone Season: May 1 through September 30 of each calendar year or such

period as defined by the U.S. Environmental Protection Agency, subsequent to

the issuance of this Trading Agreement and Order.

i. Non-Ozone Season: the period of consecutive calendar months between two

successive Ozone Seasons
NRG Energy, Inc., et al. 3 Trading Agreement and Order No. 8300

Table 1

CAIR NOx Ozone Season Units

NOx Stack Test Rates, FLERs and Allowable Limits lbs/MMBtu, unless otherwise noted

UN1~- Fuel Heat Stack Date of Date of

Registration or Input Test FLER AEL Last Next

Permit no. (MMBtu) Rate Stack Stack

Test Test

Boston Post Road other oil 256 0.726 0.8 0.29 8/10/06 8/10/11

Branford -10 0.15 (non-ozone season average,

Reg#-014-0008 regardless of fuel burned)

Sound Shore Drive other oil 256 0.192 0.22 0.15 (non-ozone season average, I1/19/08 11/19/!3

Greenwich- 10 regardless of fuel burned)

R-067-0052

Sound Shore Drive other oil 256 0.185 0.22 0.15 (non-ozone season average, 11/19/08 11/19/13

Greenwich- 11 regardless of fuel burned)

R-067-0053

Sound Shore Drive other oil 256 0,I94 0.22 0.15 (non-ozone season average, 11/19/08 ii/19/13

Greenwich- 12 regardless of fuel burned)

R-067-0054

Sound Shore Drive other oil 256 0.194 0.22 0,15 (non-ozone season average, 11/19/08 11/19/13

Greenwich-13 Nat gas regardless of fuel burned)

P 06%0097

Sound Shore Drive other oil 256 0.171 0.22 0.15 (non-ozone season average, 11/19/08 1 I/I9/13

Greenwich- !4 Nat gas regardless of fuel burned)

P 067-0098

Franklin Drive other oil 256 0.76 0.8 0.29 I0/25105 10/25/10

Torrington- ! 0 Nat gas 0,I 5 (non-ozone season average,

R-183-0049 regardless of fuel burned)

South Main Street other oil 256 0.68 0.8 0.29 01/02/06 01/02/1I

Torrington- 10 0.15 (non-ozone season average,

R-183-0059 regardless of fuel burned)

Middletown-10 other oil 256 0.57 0.67 0.29 06/20106 06/20/11

R-105-0102 0.15 (non-ozone season average,

regardless of fuel burned)

Norwalk-10 other oil 256 0.514 0.52 0.29 01/26/10 01/26/15

R-137-0032 0.15 (non-ozone season average,

regardless of fuel burned)

Devon-10 other oil 256 0.67 0,74 0.29

03/31/06 I 03/31/11 R-I05-0026 0.15 (non-ozone season average,

regardless of fuel burned)

Table 2:

CAIR NOx Ozone Season Unit, equipped with CEMS

Allowable Limits (lbs/MMBtu, unless otherwise noted)

UNIT- Heatlnput Allowable Emission Limit

reg. or permitno.

Devon Unit-I 1

t Fuel (MMBTU/hr) (AEL)

other oil 394 0.15 non-ozone season average, regardless of fuel burned

P-105-0040 Nat .gas

Devon Unit-12 other oil 394 O. 15 non-ozone season average, regardless of fuel burned

P-105-0041 Nat gas

Devon Uni>13 other oil 394 0.15 non-ozone season average, regardless of fuel burned

P-105-0042 Nat gas

Devon Unit-14 other oil 394 0,15 non-ozone season average, regardless of fuel burned

P-105-0043 Nat gas
NRG Energy, Inc., et al. 4 Trading Agreement and Order No. 8300

Table 3:

Non CAIR NOx Ozone Season Unit

NOx Emission Rates, FLERs and Allowable Limits (lbs/MMBtu, unless

UNITreg. or

permit no.

Montville- 10

Montville- 11

Fuel

other oil

other oil

Heat Input

(MMBtu/hr)

29

29

Stack

Test

Rate

3.09

1.93

FLER

(lb/mmbtu)

3.11

2.96

Allowable

Emission

Limit

(AEL)

2.35

2.35

Date of

Last Stack

Test

oth~

Date of

Next Stack

Test

03/24106

08/23/06

03/24/11

08123111

The Respondents agree that the actual NOx emission rates from the emission units

described in Tables 1-3, at times, exceed the corresponding AEL.

Pursuant to Section 22a-t 74-220) of the Regulations, Respondents propose to comply

with Section 22a-174-22(e) of the Regulations, when operating the emission units

described in Table 1 by means of emissions trading in accordance with the provisions of

this Trading Agreement and Order.

The Respondents propose to use the full load emission rates ("FLERs") identified in

Tables 1 and 3 for the purposes of calculating Actual DERCs/Allowances Required.

The Commissioner, in accordance ~vith Section 22a-174-22(j) of the Regulations hereby allows

Respondents to comply with Section 22a-174,22 of the Regulations at the facilities through the

use of emissions trading, subject to the provisions of this Trading Agreement and Order.

B. With the agreement of Respondents, the Commissioner, acting under Sections 22a-6, 22a-174, 22at 76, and 22a-177 of the Connecticut General Statutes, hereby orders Respondents as follows:

1. Expiration of this Trading Agreement and Order: The Respondents may only use emissions

trading, subject to the provisions of this Trading Agreement and Order, until the date of

expiration of this Trading Agreement and Order. The date of expiration of this Trading

Agreement and Order shall be the earlier of:

a. May 31, 2014;

b. The date upon which the Respondents demonstrate to the Commissioner’s

satisfaction that actual NOx emissions from the emission units, at all times, do

not exceed the corresponding AEL(s);

The date specified in any written notice from the Commissioner stating that the

Respondents are no longer allowed to use emissions trading due to the

Respondents’ violation of any provision of this Trading Agreement and Order;

or

d. The date specified in any written notice from the Commissioner, notifying the
NRG Energy, Inc., et al. 5 Trading Agreement and Order No. 8300

Respondents that the Commissioner has determined the use of emissions

trading as a compliance option has been further restricted, modified or nullified

by:

(i) the promulgation of an Act, Statute, or Regulations; or

(ii) the issuance of a judgment or court order.

2. Respondents shall obtain and use sufficient DERCs and/or Allowances in such a manner as to

comply with Paragraphs B.9 and B.10 of this Trading Agreement and Order, All Allowances

used must come from an emission unit that is within the same ozone nonattaimnent area as the

Respondents. Any Allowances used to comply with this Trading Agreement and Order must

be allocated for the control period that occurs during the same year those allowances are used

for compliance with this Trading Agreement and Order. All DERCs used during the Ozone

Season for each emissions unit described in Tables 1 and 3, shall have been generated during

an Ozone Season.

3. Prior to using Allowances in accordance with Paragraphs B.9 and B.10 of this Trading

Agreement and Order the Respondents shall obtain a General and/or Compliance Account in

the CAIR NATS.

4. Vintage Restriction. For the purposes of compliance with Section 22a- 174-22 of the

Regulations and the provisions of this Trading Agreement and Order, DERCs shall only

remain valid for five (5) calendar years from the year of the generation of such DERCs.

DERCs older than five (5) calendar years from their creation are not valid for use for

compliance with Section 22a-174-22 of the Regulations and the provisions of this Trading

Agreement and Order.

5. Respondents shall not cause or allow actual NOx emissions from the operation of the

emission units described in Tables 1 and 3 of this Trading Agreement and Order to exceed the

corresponding FLERs. Compliance with the corresponding FLERs specified in Table 1 shall

be determined based on the results of emissions testing performed in accordance with Section

22a-174-22 of the Regulations or based on NOx emissions monitored and recorded by a

continuous emissions monitoring system that was approved by the Commissioner and that

complies with Section 22a-174-4 of the Regulations and either 40 CFR 60, Appendices B&F

or 40 CFR 75.

6. Ozone Season Fuel Use Restriction: Notwithstanding the provisions of Paragraph B.3 of this

Trading Agreement and Order, when operating the emission units described in Tables 1-3

during the Ozone Season, the Respondents shall operate those units while firing or co-firing

the lowest NOx emitting fuel type or combination of fuel types that the units are physically

able to bum and that the Respondents are authorized to burn in accordance with Departmental

permit, registration, or applicable regulation.

7. Notwithstanding Paragraph B.6 of this Trading Agreement and Order, during the Ozone

Season, the Respondents may operate the emission units described above on fuels that result

in higher emissions of NOx, if either:
NRG Energy, Inc., et al. 6 Trading Agreement and Order No. 8300

a. the availability of fuel oil that complies with Paragraph B.6 is inadequate to meet

the needs of residential, commercial and industrial users in this state and that such

inadequate supply constitutes an emergency; or

b. the supply of gaseous fuels to the emission units is interrupted due to inadequate

supply or in accordance with an interruptible supply agreement between the

Respondents and the gaseous fuel supplier,

the reliance on the lowest NOx emitting fuel type or combination of fuel types

would prevent a timely response to a dispatch directive issued by the Independent

System Operator New England (ISO NE) to provide electricity pursuant to

obligations in the Locational Forward Reserve Market, or

d÷ the unit is operating in order to conduct testing required by any governmental

agency or auditing/testing required to demonstrate the ability to satisfy

commitments made to ISO NE in the Forward Capacity and/or Locational Forward

Reserve Markets.

8. DERC/Allowance Use. On the first day of each calendm" month, the Respondents shall

possess a quantity of DERCs and/or Allowances that equals or exceeds the quantity of Actual

DERCs Required and/or Actual Allowances Required in that month. Compliance with

Paragraph B.8 of this Trading Agreement and Order shall be determined as follows:

a. Before the first day of each month, Respondents shall estimate DERCs and/or

Allowances required for such calendar month for the emission unit described in

Tables 1 and 3 as follows:

Estimated DERCs/Allowances Required =

{(Estimated fuel use in MMBtu) x ((FLER lb/mmbtu) - (0.95 x AEL))}+2000 lbs/ton

Where:

 ̄ AEL = Allowable Emission limit, as defined in Paragraph A.4 of this

Trading Agreement and Order

 ̄ Discount (0.95) = 5% design margin applied to the AEL.

b. No later than the twentieth day of each month, Respondents shall calculate actual

DERCs and/or Allowances used in the preceding calendar month for the emission

unit described in Tables 1 and 3 as follows:

Actual DERCs/Allowances Required =

{(Monthly fuel use MMBtu) x ((FLER lb/mmbtu) - (0.95 x AEL))} + 2000 lbs/ton
NRG Energy, Inc., et al. 7 Trading Agreement and Order No. 8300

9. Non-Ozone Season DERC/Allowance Use. In addition to the requirements of Paragraph B.8

of this Trading Agreement and Order, on the first day of each Non-Ozone Season, the

Respondents shall possess a quantity of DERCs and/or Allowances that equals or exceeds the

quantity of Non- Ozone Season Actual DERCs/Allowances Required for that Non-Ozone

Season. Compliance with Paragraph B.9 of this Trading Agreement and Order shall be

determined as follows:

Before the first day of each Non-Ozone Season, Respondents shall estimate

DERCs and/or Allowances required for that Non- Ozone Season for the emission

units described in Tables 1 and 2 based on the average actual NOx emission rate

from the emission unit and an emission limit of 0,15 lb/mmbtu as follows:

Estimated Non-Ozone Season DERCs/Allowances Required (Table 1 units) =

{(Estimated Non-Ozone Season fuel use in MMBtu) x ((FLER lb/mmbtu) - (0.95 x

0.151b/mmbtu))} + 2000 lbs/ton-Z( Estimated DERCS and/or Allowances

Required for all months of the Non-Ozone Season calculated pursuant to

Paragraph B.8)

Estimated Non-Ozone Season DERCs/Allowances Required (Table 2 units) =

{(Estimated Non-Ozone Season fuel use in MMBtu) x ((Estimated Ozone Season

Average NOx Emission rate lb/mmbtu) - (0.95 x 0.151b/mmbtu))} + 2000 lbs/ton2(Estimated DERCS and/or Allowances Required for all months of the NonOzone Season calculated pursuant to Paragraph B.8)

No later than thirty (30) days after the end of each Non-Ozone Season, the

Respondents shall calculate Actual Non-Ozone Season DERCs and/or Allowances

used during that Non-Ozone Season for the emission units described in Tables 1

and 2 as follows:

Actual Non-Ozone Season DERCs/Allowances Required (Table 1 units) =

{(Actual Non-Ozone Season fuel use in MMBtu) x ((FLER lb/mmbtu) - (0.95 x

0.151b/mmbtu))} + 2000 lbs/ton- 2(Actual DERCS and/or Allowances Required

for all months of the Non-Ozone Season calculated pursuant to Paragraph B.8)

Actual Non-Ozone Season DERCs/Allowances Required

{(Actual Non-Ozone Season fuel use in MMBtu) x ((Actual Non-Ozone Season

Average NOx Emission Rate lb/mmbtu) - (0.95 x 0.151b/mmbtu))} + 2000 lbs/ton2( Actual DERCS and/or Allowances Required for all months of the Non-Ozone

Season calculated pursuant to Paragraph B.8

10. On or before January 31, of each calendar year, the Respondents shall deduct a quantity of

DERCS from the current balance of DERCs possessed by the Respondents and/or transfer a

quantity of Allowances from the Respondents’ NOx General and/or Compliance Account to

the CT State NOx Retirement Account (Account ID CT0000000300 in the CA1R NATS) such

that the total is equal to the sum of Actual DERCs/Allowances Required pursuant to

Paragraph B.8 of this Trading Agreement and Order for the preceding calendar year, rounded

up to the nearest whole ton.
NRG Energy, Inc., et al. 8 Trading Agreement and Order No. 8300

11. Not more than ninety (90) days after the completion of the Non-Ozone Season, the

Respondents shall deduct a quantity of DERCS from the current balance of DERCs possessed

by the Respondents and/or transfer a quantity of Allowances from the Respondents’ NOx

General and/or Compliance Account to the CT State NOx Retirement Account (Account ID

CT0000000300 in the CAIR NATS) such that the total is equal to Actual Non-Ozone Season

DERCs/Allowances Required for the most recently completed Non-Ozone Season.

Notwithstanding the control period limitations of Paragraph B.2 of this Trading Agreement

and Order, Allowances used to comply with this Paragraph for a Non-Ozone Season must

have been originally allocated for the control periods that correspond to the same calendar

years within that Non-Ozone Season.

12. Doubling; If the Actual DERCs/Allowances Required for any month, determined in

accordance with Paragraph B.8, exceeds the quantity of DERCs and/or Allowances in the

Respondents’ possession on the first day of that month, then in addition to the deduction or

transfer specified in Paragraph B. 10, the Respondents shall also deduct a quantity of DERCs

from the current balance of DERCs possessed by the Respondents and/or transfer a quantity of

Allowances from the Respondents’ NOx General and/or Compliance Account to the CT State

NOx Retirement Account (Account ID CT0000000300 in the CAIR NATS) such that the total

is equal to Actual DERCs/Allowances Required for that month. Such additional DERC

deduction or Allowance transfer shall be performed at the same time as the DERC deduction

or Allowance transfer specified in Paragraph B.10 of this Trading Agreement and Order.

If the Actual DERCs/Allowances Required for any Non-Ozone Season, determined in

accordance with Paragraph B.9, exceeds the quantity of DERCs and/or Allowances in the

Respondents’ possession on the first day of the Non-Ozone Season, then in addition to the

deduction or transfer specified in Paragraphs B.11, the Respondents shall also deduct a

quantity of DERCs from the current balance of DERCs possessed by the Respondents and/or

transfer a quantity of Allowances from the Respondents’ NOx General and/or Compliance

Account to the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIR

NATS) such that the total is equal to Actual Non-Ozone Season DERCs/Allowances Required

for the most recently completed Non-Ozone Season. Such additional DERC deduction or

Allowance transfer shall be performed at the same time as the DERC deduction or Allowance

transfer specified in Paragraph B. 11 of this Trading Agreement and Order.

Notwithstanding the provisions of Paragraph B. 12 of this Trading Agreement and Order, any

violation of Paragraphs B.8 and B.9 of this Trading Agreement and Order may be subject to

additional enforcement action as may be deemed appropriate by the Commissioner in

accordance with the Department’s enforcement response policy.

t 3. No later than December 31 st of each year, Respondents shall deduct an additional quantity of

ozone season DERCs from the current balance of DERCs possessed by the Respondents

and/or transfer an additional quantity of Allowances from the Respondents’ NOx General

and/or Compliance Account to the CT State NOx Retirement Account (Account ID

CT0000000300 in the CAIR NATS) such that the total of DERCS/Allowances deducted

and/or transferred in accordance with this Paragraph is equal to:

6 x Z{(Actual Daily Fuel Use in MMBtu) x ((FLER) - (0.95 x AEL))} +2000 lbs/ton
NRG Energy, Inc., et al. 9 Trading Agreement and Order No. 8300

Where actual daily fuel use pertains to operation of Tables 1 and 3 emissions units

on days that the Connecticut eight hour ozone levels were forecasted to be

"moderate to unhealthy for sensitive groups", "unhealthy for sensitive groups",

"unhealthy", or "very unhealthy" during the previous Ozone Season.

14. At the end of each calendar year, the Respondent shall demonstrate that any Allowances used

for compliance with this Trading Agreement and Order during the year satisfy the

requirements of Paragraph B.3 and are surplus, quantifiable, enforceable and permanent. This

shall be determined for the emissions units in each Non-Attainment Area by demonstrating

that the actual, aggregate NOx emissions during the most recent control period, as reported to

the United States Environmental Protection Agency, from the emission unit(s) to which the

Allowances were originally allocated were equal to or less than the aggregate amount of

Allowances allocated to such unit(s) by the State of Connecticut minus the aggregate amount

of Allowances transferred or used for compliance with this and any other Trading Agreement

and Order.

The Respondents shall also demonstrate that any DERCs generated and/or used in accordance

with this Trading Agreement and Order are:

Real because they will result in a reduction of actual emissions released into the air, net of

any consequential increase in actual emissions resulting from shifting demand. The emission

reductions will be properly measured, recorded and reported.

~ because they are not required by any Connecticut statute or regulation mandated by a

current State Implementation Plan ("SIP"), and are not currently relied upon in any applicable

attainment plan, any reasonable further progress plan or milestone demonstration.

Permanent because NOx controls are in place and operating, and an appropriate tracking

system is in place to monitor all data required to verify and quantify the creation of DERCs.

Enforceable because the DERCs were generated in accordance with the provisions of this or

a prior Trading Agreement and Order issued by the Commissioner.

15. Maintenance and Tune-up. Not more than 2 years from the date of issuance of this Trading

Agreement and Order, the Respondents shall perform maintenance and inspection of the

emission units listed in Tables 1-3. Such maintenance and inspection shall include, but not be

limited to, the following:

a. Inspect the combustion system, and clean or replace any components of the

combustion system as necessary, in accordance with manufacturer’s specification

or current good engineering practice;

b. Inspect the system controlling the air-to-fuel ratio, and ensure that it is calibrated

and functioning in accordance with the manufacturer’s specifications or current

good engineering practice;

c. Measure the operating parameters of the emission unit used to determine that the

emission unit is operating in accordance with manufacturer’s specification or
NRG Energy, Inc., et al. 10 Trading Agreement and Order No. 8300

current good engineering practice prior to and after any adjustments are made

during maintenance, tune-up, or inspection activity;

d. Make and keep records including, but not limited to, the following:

Demonstration that any maintenance, tune-up, and/or inspection

activity performed on the emission unit described in Tables 1-3 in

accordance with Paragraph B.15 of this Trading Agreement and Order

has been performed in accordance with the manufacturer’s

specifications or current good engineering practice,

ii. The date and a description of any maintenance, tune-up, and/or

inspection activity performed on the emission unit described in Table

1-3 in accordance with Paragraph B.15 of this Trading Agreement and

Order,

iii.

iV.

The name, title and affiliation of the person conducting any

maintenance, tune-up, and/or inspection activity performed on the

emission unit described in Table I-3 in accordance with Paragraph

B. 15 of this Trading Agreement and Order,

The operating parameters of the emission unit used to determine that

the emission unit is operating in accordance with manufacturer’s

specification or current good engineering practice prior to and after any

adjustments are made during maintenance, tune-up, or inspection

activity performed in accordance with Paragraph B.15 of this Trading

Agreement and Order.

16. Record Keeping;

By the close of each calendar day, the Respondents shall record the actual

fuel type and the actual quantity of each type of fuel in units of volume per

day or MMbtu per day for each fuel used the preceding day in an emission

unit described in this Trading Agreement and Order,

On of before the first day of each calendar month, the Respondents shall

record the number of DERCs and corresponding serial numbers and

vintages for all DERCs in its possession on the first calendar day of that

calendar month,

C÷ On or before the first day of each calendar month, the Respondents shall

record the number of Allowances and corresponding identification numbers

and allocation control periods for all Allowances in its possession on tbe

first calendar day of that calendar month,

On or before the first day of each calendar month, the Respondents shall

record the number of DERCs and corresponding serial numbers, vintages,

purchase/sales dates, and seller/buyer for all DERCs purchased or sold

during the preceding calendar month,

e. On or before the first day of each calendar month, the Respondents shall
NRG Energy, Inc., et al. 11 Trading Agreement and Order No. 8300

record the number of Allowances and corresponding identification

numbers, purchase/sales dates, allocation years, and seller/buyer for all

Allowances purchased or sold during the preceding calendar month,

On or before the first day of each calendar month, the Respondents shall

record the Estimated DERCs/Allowances Required for that calendar month

determined in accordance ~vith Paragraph B.8 of this Trading Agreement

and Order.

On or before the twentieth calendar day of each calendar month, the

Respondents shall record the Actual DERCs/Allowances Required for the

preceding calendar month determined in accordance with Paragraph B.8 of

this Trading Agreement and Order;

On or before January 31 of each calendar year, the Respondents shall record

the quantity of DERCs deducted in accordance with Paragraphs B. 10 and

B.12 of this Trading Agreement and Order for the preceding year. Such

records shall include the serial number and vintage of each DERC deducted

from the Respondents’ current balance pursuant to Paragraphs B.10 and

B.12 of this Trading Agreement and Order.

On or before January 3 t of each calendar year, the Respondents shall record

the quantity of Allowances transferred in accordance with Paragraphs B.10

and B.12 of this Trading Agreement and Order. Such records shall include

the identification number and allocation control period of each Allowance

transferred pursuant to paragraphs B. t 0 and B. 12 of this Trading

Agreement and Order.

Not more than ninety (90) days after the completion of each Non-Ozone

Season, the Respondents shall record the Non-Ozone Season average NOx

emission rate for the emission units described in Tables 1 and 2, the

quantity of DERCs and/or allowances possessed on the first day of the NonOzone Season, and the quantity of DERCs deducted and/or Allowances

transferred in accordance with Paragraphs B.11 and B.12 of this Trading

Agreement and Order.

For each month of the Ozone season, the Respondents shall maintain

records attesting to the fact that any DERCs deducted from its balance in

accordance with Paragraphs B.10 and B.12 of this Trading Agreement and

Order satisfy the requirements of Paragraph B.2. Generator certification of

this fact shall be sufficient.

On each day during the ozone season that the Respondents operate in

accordance with Paragraph B.7 of this Trading Agreement and Order, the

Respondents shall make and keep Records of all emission unit operation in

accordance with Patagraph B.7 of this Trading Agreement and Order,

including copies of any written correspondence from the Respondents’ fuel

supplier detailing the duration and circumstances of the inadequate fuel oil

supply or interruption of gaseous fuel supply to the emission units.

17. Respondents shall retain records and supporting documentation required by this Trading

Agreement and Order for a minimum of five years, commencing on the date such records

were created. Respondents shall provide the records specified above to the Commissioner
NRG Energy, Inc., et al. 12 Trading Agreement and Order No. 8300

within thirty (30) days of receipt of a written request from the Commissioner. All records

shall be maintained in accordance with Sections 22a-174-4 and 22a-174-22 of the

Regulations.

~ No later than March 1 of every year after issuance of this Trading Agreement

and Order, the Respondents shall submit to the Commissioner a written report containing

copies of all of the records required pursuant to Paragraphs B. 16 .a - B. 16.i, and B. 16 .kB.16.m of this Trading Agreement and Order. Not later than July 30 of each calendar

year, the Respondents shall submit a written report containing copies of all records

required pursuant to Paragraph B. 16d of this Trading Agreement and Order. The

Commissioner may prescribe the forms to be used for the submission of these reports. The

Respondents shall submit these reports on such forms, if prescribed by the Commissioner.

19. FLER Violation. Violation of an established FLER shall subject Respondents to make

restitution by matching the quantity of emissions ("true up") caused by the exceedance

plus a 100% premium. The true up in tons of DERCs or Allowances shall be equal to the

FLER exceedance in lbs/MMBtu, multiplied by the total heat input during the period of

noncompliance divided by 2000 lbs/ton. If the period of noncompliance is not known, the

time period from the completion of the last/previous Department witnessed emission test

through the date that FLER compliance is achieved as approved by the Commissioner

shall be used. Notwithstanding this requirement, exceedance of any FLER contained in

Table 1 is a violation in Paragraph B.5 of this Trading Agreement and Order subject to

enforcement action in accordance with the Department of Environmental Protection’s

Enforcement Response Policy, in effect at the time of such violation.

20. FLER Modification. FLERs set forth in Tables 1 and 3 of this Trading Agreement and

Order may be modified only after the consent of the Commissioner by written

modification of this Trading Agreement and Order.

21. Emissions Testing. The Respondents shall perform emissions testing in accordance with

Section 22a-174-22(k) of the Regulations for each emission unit described in Tables 1 and

3 of this Trading Agreement and Order that is not equipped ~vith a continuous emissions

monitoring system that was approved by the Commissioner and that complies with Section

22a-174-4 of the Regulations and either 40 CFR 60, Appendix B&F or 40 CFR 75.

22. Control Technology Evaluation: Not more than 12 months from the date of issuance of this

Trading Agreement and Order, the Respondents shall submit a control technology evaluation

to reduce emissions of NOx from the emissions units described in Table 1-3 to, at a bare

minimum, a rate or concentration that complies with the applicable limits of Section 22a-174-

22 of the Regulations as may be amended, without using, tendering, or otherwise acquiring

Allowances or DERCs. Such evaluation shall include but not be limited to the following:

a. A detailed description of all subject emissions units, currently installed

emissions controls equipment and methods, all currently installed emissions

monitoring systems;

A detailed description of any and all additional or alternative emissions

control equipment and methods or, combinations thereof, that are capable of

reducing NOx emissions from subject emissions units to, at a bare minimum,

a rate or concentration that complies with the applicable limits of Section 22a174-22 of the Regulations as may be amended, without using, tendering, or
NRG Energy, Inc., et al. 13 Trading Agreement and Order No. 8300

otherwise acquiring Allowances or DERCs;

An evaluation of capital costs, annual operating costs, and total annualized

S/ton costs associated with the installation and operation of any and all

additional or alternative emissions control equipment and methods, or

combinations thereof, that are capable of reducing NOx emissions from the

subject units to, at a bare minimum, a rate or concentration that complies with

the applicable limits of Section 22a-174-22 of the Regulations as may be

amended, without using, tendering, or otherwise acquiring Allowances or

D ERC s;

An estimated schedule for the design, procurement, installation and operation

of any additional or alternative emissions control equipment and methods, or

combinations thereof, that are capable of reducing NOx emissions fi’om the

subject units to, at a bare minimum, a rate or concentration that complies with

the applicable limits of Section 22a- 174-22 of the Regulations as may be

amended, without using, tendering, or otherwise acquiring Allowances or

DERCs;

A detailed description of any adjustments and/or modifications that must be

made to the emissions monitoring systems for the subject emission units in

order to demonstrate compliance ~vith, at least, Section 22a-174-22 of the

Regulations as may be amended, without using, tendering, or otherwise

acquiring Allowances or DERCs; and

A detailed description of any collateral environmental impacts that will result

as a direct consequence of the Respondents’ use of additional/alternative

emissions control equipment and methods to reduce NOx emissions to, at a

bare minimum, a rate or concentration that complies with the applicable limits

of Section 22a- 174-22 of the Regulations as may be amended, without using,

tendering, or otherwise acquiring Allowances or DERCs.

23. Full compliance. Respondents shall not be considered in full compliance with this Trading

Agreement and Order until all actions required by this Trading Agreement and Order have

been completed as approved and to the Commissioner’s satisfaction.

24. A_p_provals. Respondents 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 Commissioner notifies Respondents that any document or other action is

deficient, and does not approve it with conditions or modifications, it is deemed

disapproved, and Respondents shall correct the deficiencies and resubmit it within the time

specified by the Commissioner or, if no time is specified by the Commissioner, within 30

days of the Commissioner’s notice of deficiencies. In approving any document or other

action under this Trading Agreement and Order, the Commissioner may approve the

document or other action as submitted or performed or with such conditions or

modifications as the Commissioner deems necessary to carry out the purposes of this

Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or

delay.
NRG Energy, Inc., et al; 14 Trading Agreement and Order No. 8300

25. Definitions. As used in this Trading Agreement and Order "Commissioner" means the

Commissioner or a representative of the Commissioner; 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.

26. Dates. The date of submission to the Commissioner of any document 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 Commissioner under Trading Agreement

and Order, including but not limited to notice of approval or disapproval of any document

or other action, shall be the date such notice is deposited in the U.S. mail or is personally

delivered, whichever is earlier. Except as otherwise specified in this Trading Agreement

and Order, the word "day" as used in this Trading Agreement and Order means calendar

day. Any document or action,which is required by this Trading Agreement and Order to

be submitted or performed by a date which falls on a Saturday, Sunday or a Connecticut or

federal holiday shall be submitted or performed by the next day which is not a Saturday,

Sunday or Connecticut or federal holiday.

27. Certification of documents. Any document, including but not limited to any notice, which

is required to be submitted to the Commissioner under this Trading Agreement and Order

shall be signed by an individual, employed by the Respondents, who satisfies the criteria

set forth in Section 22a-174-2a(a)(1) of the Regulations of Connecticut State Agencies and

by the individual(s) responsible for actually preparing such document. Each individual

who signs documents in accordance with this Paragraph shall certify in writing as follows:

"I have personally examined and am familiar with the information submitted in this

document and all attachments thereto, and I certify, based on reasonable investigation,

including my inquiry of those individuals responsible for obtaining the information, 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 may be

punishable as a criminal offense under Section 53a-157b of the Connecticut General

Statutes and any other applicable law."

28. Noncompliance. This Trading Agreement and Order is a final order of the Commissioner

with respect to the matters addressed herein, and is nonappealable and immediately

enforceable. Failure to comply with this Trading Agreement and Order may subject

Respondents to an injunction and penalties.

29. 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 53a157b of the Connecticut General Statutes and any other applicable law.

30. Notice of transfer; liability of Respondents. Until Respondents have fully complied with

this Trading Agreement and Order, Respondents 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. Respondents’ obligations under this Trading

Agreement and Order shall not be affected by the passage of title to any property to any

other person or municipality.
NRG Energy, Inc., et al. 15 Trading Agreement and Order No. 8300

31. Commissioner’s powers. Nothing in this Trading Agreement and 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 and natural resource

damages, and to impose penalties for past, present, or future violations of law. If at any

time the Commissioner determines that the actions taken by Respondents pursuant to this

Trading Agreement and Order have not successfully corrected all violations, fully

characterized the extent or degree of any pollution, or successfully abated or prevented

pollution, the Commissioner may institute any proceeding to require Respondents to

undertake further investigation or further action to prevant or abate violations or pollution.

32. Respondents’ obligations under law. Nothing in this Trading Agreement and Order shall

relieve Respondents of other obligations under applicable federal, state and local law.

33. No assurance by Commissioner. No provision of this Trading Agreement and Order and

no action or inaction by the Commissioner shall be construed to constitute an assurance by

the Commissioner that the actions taken by Respondents pursuant to this Trading

Agreement and Order will result in compliance or prevent or abate pollution.

34. Access to premises. Any representative of the Department of Environmental Protection

may enter the without prior notice for the purposes of monitoring and enforcing the actions

required or allowed by this Trading Agreement and Order.

35. No effect on rights of other persons. This Trading Agreement and Order neither creates

nor affects any rights of persons or municipalities that are not parties to this Trading

Agreement and Order.

36. No Creation of Property Rights. This Consent Order does not create any property rights

with respect to these DERCs or Allowances.

37. Notice to Commissioner of changes. Within 15 days of the date Respondents become

aware of a change in any information submitted to the Commissioner under this Trading

Agreement and Order, or that any such information was inaccurate or misleading or that

any relevant information was omitted, Respondents shall submit the correct or omitted

information to the Commissioner.

38. Notification of noncompliance. In the event that Respondents become aware that it did

not or may not comply, or did not or may not comply on time, with any requirement of this

Trading Agreement and Order or of any document required hereunder, Respondents 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 of the

initial notice, Respondents shall submit in writing the date, time, and duration of the

noncompliance and the reasons for the noncompliance or delay and propose, for the

review and written approval of the Commissioner, dates by which compliance will be

achieved, and Respondents shall comply with any dates which may be approved in writing

by the Commissioner. Notification by Respondents shall not excuse noncompliance or

delay, and the Commissioner’s approval of any compliance dates proposed shall not excuse
NRG Energy, Inc., et al. 16 Trading Agreement and Order No. 8300

noncompliance or delay unless specifically so stated by the Commissioner in writing.

39. Submission of documents. Any document required to be submitted to the Commissioner

under this Trading Agreement and Order shall, unless otherwise specified in this Trading

Agreement and Order or in writing by the Commissioner, be directed to:

Supervisor

Administrative Enforcement Group

Engineering and Enforcement Division

Bureau of Air Management

Department of Environmental Protection

79 Elm Street, 5th Floor

Hartford, Connecticut 06106

(860) 424-3702

Respondents consent to the issuance of this Trading Agreement and Order without further notice. The

undersigned certifies that he/she is fully authorized to enter into this Trading Agreement and Order and

to legally bind Respondents to the terms and conditions of the Trading Agreement and Order.

Respondents

Si

Type Name:

Issued as a final consent order of the Commissioner of the Department of Environmental Protection.

Bureau of Air Management

Date

TOWN OF

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document
NRG Energy, Inc., et al. 17 Trading Agreement and Order No. 8300

[Note: This sheet is not a part of the order and is ~ attached to the original order ~vhich is

retained in separate DEP files which are accessible to the public with close supervision. The order

must be mailed to the User by certified mail, return receipt requested. If the User is a business, send

a certified copy to the attention of a person at the business.]

Certification of Mailing

On ____, 2010, at __ A.M./P.M., I mailed a certified copy of Trading Agreement and

Order No. 8300 to the following, by placing it in the [U.S. mail/interdepartmental

mail]:

On ,2010, at __ A.M./P.M. I mailed a plain copy of Trading Agreement and

Order No. 8300 to the following, by placing it in the [U.S. mail/interdepartmental mail]:

Signature:

Name:

Title:

Date: