# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the maner of The State ofConnecticut and .AJgonquin Gas Transmission**~ompany** 

# , ) ) 

### ) ) 

### ) Trading Agreement and Order No. 8123A



# , ./ Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and AJgonquin Gas Transmission Company (<<Algonquin") agree that 

### it is in thepublic interest that they work cooperatively to improve the air quality 

### within the State ofConnecticut and that the use ofdiscrete emission reduction credit 

### (<<DERe") trading and continuous emission reduction credit 

### ("CERe") trading 10 reduce nitrogen oxide (''NOx'') emissions will achieve 

### this 

### result in atimely and cost-effective manner. A. At the request and with the agreement ofiugonquin, the Commissioner fmds the following: 1. 

### This Trading Agreement and Order supercedes Trading Agreement and Order 8123 issued on April 18, 1997 and TradingAgreement and Order 8123 Modification issued April 29 1999. 2. Algonquin is a corporation, which owns and operates a natural gas compressor station located at Shunpike Road, Cromwell, Connecticut ("facility"). 3. At the facility, Algonqujn operates one Solar CentaurT-4700 Narural Gas Turbine Engine ("unit C-7"). 4. To reduce excess NOx emissions Algonquin added 

### dry low-NOx emission control on unit**C~** 7 so that emissions frequently can be kept below the NOx emission limitations established by Section 22a-174-22(e) oftbe Regulations of Connecticut State Agencies ("Regulations"). 5. Emission testing perfonned on the dates indicated in Table I, resulted in a NOx emission rates as follows: 

### Table 1 Emission Fuel Heat Input FLER Baseline Allowable Date of No'" Unit MMBtuIhr LbsIMMBru emission rate emission Emission Emission LbsIMMBtu limit Tost Test Due IbsIMMBtu C·; Natural gas 46 

# I .145 .410 .170 3/14/00 

## I 3/14/05

(Primcd 00 Rccyclcd P'pcr) 79 Elm Snccr • H.nford, CT 06106

- 5127 IInp:lldcp.S:.lc.CI.1l5

...." Equgl OpPOrll/,nilY '/nploy"

### Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A

6. Pursuant to Section 22a-174·22G) ofthe Regulations, Algonquin intends to generate DERCs and CERCs until May 1,2007. 7. CERes will continue to be created from the difference between the baseline emissionrate of

## .(l.41 IbsIMMBlU and the permit limitation ("allowable limit")of 0.17 IbsIMMBlU, resulting in a stream ofCERCs of0.24IbsIMMBlU. Algonquin indicates that 30 tons peryear ofoffsets, based on aheat input of 250,000 :M:MBtuS, 

### would be created, subject to any use restrictions that may be applicable to the userunder Section 22a-174-3a(I)(5) ofthe Regulations. 8. When properly documented by Algonquin, and approved by the Commissioner, the emission reductions identified above, and as computed in accordance with the terms ofthis Trading Agreement and Order, will conform to the requirements ofSection 22a-174-3a(l) (A) through (F) 

### ofthe Regulations. 9. The Commissioner, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, previously approved the NOx DERCs referenced 

### in Table 2 ofthis Trading Agreement and Order. DERCs are subject to 

### the vintage restrictions in 

### this Trading Agreement and Order. Dates that after which the unused DERCs will no longerbe eligible for use as aresult ofthe vintage restrictions areprovided in Table 2 ofthis Trading Agreement and Order 

### in the expiration date column. Table 2 dNO DERC 

### p**re~OUSIV** aoorove , 

### x s Year of Ozone season DERC serial Ozone Non-Ozone season DERC Non- Expiration Generation numbers serial numbers Ozone Date 1994-1996 Not assilWed 8 Not assilmed 22 12131/04 

### 10. As 

### documented 

### in Attaclunent 1, attached to and incorporated byreference into this Trading Agreement and Order, 15 tons ofozone season NOx DERCs and 101 tons ofnon-ozone season NOx DERCs were generated by unit 

### C-7 bet\.Veen January 1, 1997, and December 31, 2002

..j

, 

### . B.l. The Commissioner, in accordance with 

### the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, will allow Algonquin and approved sources within Connecticut to use the NOx DERCs referenced in paragraphs A.9. and A.lO.ofthis Trading Agreement and Orderiorpurposes ofcompliance under Section 22a·174-22(j) ofthe Regulations to achieve aportion ofthe nitrogen oxide emission reductions required by Section 22a-174-22 ofthe Regulations. DERC creation serial numbers assigned by the Department ofEnvironmental Protection ("Department") to 2Algonquin Gas Transmission Company Trading Agreement and Order No. BI23A these approved reductions ofNOx emissions referenced 

### in paragraph A.lO. are provided in Table 3 ofthis Trading Agreement and Order: Table 3 Year of 

## - Ozone season DERC serial Ozone**Non~Ozone** season DERC Non- Expiration Generation numbers serial cumbers Ozone Dale 1997-1999 Not**assi~ed** 7 Not assi2D.ed 52 12131/04 2000 N/A 

## I 0 croo/8123(DC)Noxnozl-19 19 12131/05 2001 

### I CT00I8123(DC)Noxoz1·2 

### I 2 CTOO/8123(DClNoxnozl·14 14 

### I 12131/06 2002 CT00I8123{DC)Noxozl·6 6 CTOO/8123(DC)Nonxozl-16 16 I 12131107 B.2. Upon sufficient documentation as prescribed 

### in this Trading Agreement and Order, Algonquin may generate additional DERCs. Upon issuance ofan addendum to this Trading Agreement and Order the Commissioner may approve the generation ofadditional DERCs by Algonquin retrospectively. Approved DERCs generated by Algonquin m.y be held by Algonquin or transferred to otherpersons in accordance 

### with this Trading Agreement and Order. C. With the agreement ofAlgonquin, the Commissioner, acting under**Sec~ions** 22a-6, 22.-171, 22a-174, 22.-176, and 22.-177 ofthe Connecticul General Statutes, hereby orders Algonquin as follows: 1. Upon issuance ofthis Trading Agreement and Order, Algonquin may hold or transferto otherpersons approved DERCs as allowed under this Trading Agreement and Order until April 31, 2007. 2. Upon issuance ofthis Trading Agreement and Order, Algonquin may hold or transfer to otherpersons approved DERCs generated from a continuous rate of.24 lbs!.MMBtu as allowed under this Trading Agreement and Orderuntil April 31, 2007. 3. DERC 2:eneration:

a. Until April 31, 2007 Algonquin shall calculate the amount ofDERCs generated as follows: DERCs (tons) ([Actual fuel use fuels in MMBru x (allow.ble emission limitFLER)] x 

### (.9 x 

### .9)1.,. 2000 lbs/ton)

b. Until April 31, 2007 Algonquin shall calculate the amount ofDERCs generated from the continuous rate of.24 LbslMMBtu as follows:

3

### Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A 

### DERCs (tons) = 

### {[Acrual fuel use fuels 

### in MMBru x \Baseline emission limitAllowable emission linn)] x (.9 x .9) .;. 2000 Ibslton}

Where: -Allowable emission limit- in lbslM11Btu as shown 

### in Table 1 ofthis Trading Agreement and Order. 

## -.EL&R= full load emission rate in IbsflvfMBtu as shown in Table 1 of this Trading

Agreement and Order.

- Baseline emission limit= in Ibs/M1v:1Bru as shown 

### in Table 1 of this Trading

Agreement and Order. The Commissionerreserves the right to modify such baseline emission rate to meet any new requirements which maybe established subsequentto this Trading Agreement and Orderor as a result ofadditionaJ approved stack testing.
I Ten (10) percent ofthe DERCs generated by the facility will be permanently removed from all

calculations to assure abenefit to the environmenL.'\.o additional ten (10) percent ofthe DERCs generated by the facility will be permanently removed from all calculations due to uncenainties from a single approved emission tesL 

### 4. In order to maintain the creation ofCERCs and DERCs, Algonquin must meet the permit limit of0.17 IbsJrvfMBtu. However, ifat anytime after issuance ofthis Trading Agreement and Order, Algonquin exceeds this limit stated above in this paragraph, Algonquin shall conduct NOx emission testing ofunit C-7 on orbefore sixty (60) days after the exceedance ofthe above limitin accordance with the requirements specified in 

### paragraph C.S.i. through C.S.viii. 5. Upon issuance ofthis Trading Agreement and Order, ifAlgonquin has reason to believe unit C-7 may be exceeding 0.17 Ibs/MlvfBtu, Algonquin shall conduct NOx emissions testing ofunit C-7 on orbefore sixty (60) days after the exceedance ofthe above limits in accordance with the following:

1. 

### Algonquin shall submitto the Commissionerfor his review and wrinen approvaJ an Intent-To·Test ("ITT") protocol not less than thiny 

### (30) days priorto the emissions testing required pursuantto this paragraph and paragraph CA, 

### ofthis Trading Agreement and Order. The

## m protocol shall include at least:

11 

### The Depanment's Bureau ofAir Management Test Form No. I, "Intent to Test", 

# ,

### Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A

lll. 

### System operatingparameters indicative ofthe highest operating rate since the March 14, 2002 stacktest or amore recent Department witnessed emission test, including, but not limited to: fuel firing rate, and NOx emissions rate.

IV. 

### The ITT protocol shall provide that Algonquin shall perform testing as specified 

### in Sections 22a-174-5 and 22a-174-22 ofthe Regulations, including operating unit C-7 at not less than ninety percent (90%) ofits maximumrated capacity limit orhighest operatingrate since 

### its last/previous emissions test, whicheveris higher.

v. Algonquin shall perform all testing required by this Trading Agreement and Orderin accordance with the approved ITT protocoL

Vi. 

### In conducting and performing the testing required by this Trading Agreement and Order, and analyzing the results ofsuch testing, Algonquin shall adhere to methods specified in Sections 22a-174-5 and 22a-174-22 oftbeRegulations and as approved by the United States Environmental Protection Agency ("EPA'') and the Commissioner.

Vll. 

### Algonquin shall schedule all emissions testing to allow the Commissionerto be prese-nt during such testing and to independentlyverify facility operations, air pollution control equipmentparameters, and testing procedures.

Vlll. 

### Within 30 days after completing any emissions testing required by this Trading Agreement and Order, Algonquin shall submit to 

### the Commissioner a wrinen report providing the results ofsuch testing; within 15 days ofanotice from the Commissionerindicating any deficiencies in such report, Algonquin shall submit arevised report. 6. !\.lgonquin shall make and keep records for Unit C-7 of: fuel use, NOx mass emissions, the amount ofall CERes and DERCs generated eac.h month, and running totals ofeach ofthe foregoing for the current calendaryear. 7. Record Keeping. Algonquin shall retain records and supporting documentation as described 

### in this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. Algonquin shall provide the

5Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner. 8. Annual Emission Statement. No later than March 1 ofevery year after issuance of this Trading Agreement and Order, Algonquin shall include with the Annual Emission Statementprovided to the Commissioner, a record ofeach sale or other transfer, and use·ofany and all ofthe CERCs and DERCs approved within and subsequent to issuance ofthis Trading Agreement and Order until all such CERCs and DERCs have been used or are no longer 

### in Algonqu.in's possession. Algonquin shall also include actual NOx emissions from Unit C-7 and the amount ofall CERes and DERCs, approved and/or for the previous calendar year. These reports shall be on a fonn prescribed by the Commissioner and shall be 

### in monthly increments. Should

..<\..lgonquin choose to discontinue the generation ofCERCs and DERCs. Algonquin will notify the Commissionerupon discontinuance. 9. VintalZe Restriction. For the pwposes ofcompliance with Section 22a-174-22 of the Regulations, DERCs/alIowances shall onlyremain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch 

### DERCs/allowances. DERCs/allowances generated/allocated more than five (5) calendar years ago are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above the DERCsiallowances generated/allocated prior to calendar year 2000 shall be valid for use until December 31, 2004. 10. Extension. No laler than April 30, 2007, with respect to unit C-7, Algonquin shall complywith the requirements ofSubdivision 22a-174-22(d)(I) ofthe Regulations. However, after full program review ofthis and other Trading Agreements and Orders and, ifdetermined to be appropriate, the Commissioner may grant a written extension ofthis Trading Agreement and Order. 11. Full compliance. Algonquin shall Dotbe 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. 12. Approvals. Algonquin shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Order in a complete and approvable form. Ifthe Commissionernotifies Algonquin that any document or other action is deficient, and does not approve it 

### with conditions or modifications, it is deemed disapproved, and Algonquin shall correct the deficiencies and resubmit it within the time specified bythe Commissioner or, ifno time is specified by the Commissioner, within 30 days ofthe Corrunissioner's notice ofdeficiencies. In approving any document or other action under this Trading Agreement and Order, 6

### ,.'< 

# ."',./ /'-: /'/ Algonquin Gas Transmission Company Trading Agreement and 

### OrderNo. 8123A the Conunissioner may approve the document or other action as submined or performed orwith such conditions or modifications as the Commissioner deems 

### necessary to 

### carry outthepurposes ofthis Trading Agreement and Order. Nothing in Uris paragraph shall excuse noncompliance ordelay. 

### 13. Definitions. As usedinthis Trading Agreementand Order, "ApprovedDERCs" arethose forwhich the Commissionerhas provided written authorization for

# Use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioner or a representative'ofthe Commissioner. The date of"issuance" 

### Ofthis Trading Agreement and Order is the datethe.Trading Agreement and Order is deposited in the U.S. mail orpersonally delivered, whichever is earlier. 14. Dates. The date ofsubmission to the Commissioner ofany document required by this Trading Agreement and Order shall be the date such document is received by the Commissioner.**~e** date ofany notice by the Commissioner under Trading Agreement and Order, including but not limited to notice ofapproval or disapproval ofany document orother action, shall be the date such notice is deposited. 

### in the U.S. mail oris personallydelivered, whicheveris earlier. Except as otherwise specified 

### in this Trading Agreement and Order, the w.ord "day" as used 

### in this Trading Agreement and Order means calendar day. Any document or action which is required bythis Trading Agreement and Order to be submitted or performed by a date which falls on a Saturday, Sundayor a Connecticut or federal holiday'shall be submined orperfonned. bythe next daywhich is not a SatUrday, 

### Sunday orConnecticutorfederal holiday. 15. Certification ofdocuments. 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 byAlgonquin or, ifAlgonquin is not an individual, by an individual who is an authorized representative ofthe Respondent, in**.accordan~e** with Section 22a·174-2a(a) ofthe Regulations ofConnecticut State Agencies, andbythe individual(s) responsible for actuallypreparing such

. . document, and each such individual shall certifyin 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 ofthose i..,dividuals responsible for obtainingthe information, that the submitted infonnation is true, accurate and complete to the best ofmy lmowledge and belief. I understand that any false statement made 

### in the submitted information is punishable as a criminal offense under Section 53a·157b ofthe Connecticut General Statutes and wyother applicable law."

7Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A

16. Noncompliance. This Trading Agreement and Orderis a final order ofthe Commissionerwith respect to the maners addressed herein, and is nonappealable and immediately enforceable. Failure to complywith this TradingAgreement and Order may subject Algonquin to an injunction andpenalties. 17. False statements. Any false statement 

### in any information submitted pursuant to this Trading Agreement and Order is punishable as a criminal offense under Section 53a· 15Th ofthe Connecticut General Statutes and any other applicable law. 18. ooce oftransfer: liability ofA1e:onouin. Until Algonquin has fully complied with this Trading Agreement and Order, Algonquin shall notifythe Commissionerin writing no later than 15 days after transferring all or anyportion ofthe facility, the operations, the site or the business which is the subject oftrus Trading Agreement and Order or after obtaining a new mailing or location address. Algonquin's obligations under this Trading Agreement and Order shall not be affected bythe passage oftitle to any propertyto any otherperson or municipality. 19. Commissioner's powers. Nothing 

### in this Trading Agreement and Order shall affect the Commissioner's authority to institute anyproceeding or take any other action to prevent or abate'violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties for past, present, or future violations oflaw. !fat any time the Commissionerdetermines that the actions taken byAlgonquin pursuant to this Trading Agreement and Orderhave Dot successfullycorrected all violations, fully characterized the extent ordegree ofanypollution, or successfully abated orprevented pollution, the Commissionermay institute anyproceeding to require Algonquin to undertake furtherinvestigation or further action to prevent or abate violations or pollution. 20. Ahzonauin's obli2ations under law. Nothing in this Trading Agreement and Order shall relieve Algonquin ofotherobligations under applicable federal, state and local law. 21. No assurance by Commissioner. No provision ofthis Trading Agreement and Order and no action or inaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthat the actions taken by Algonquin pursuant to this Trading Agreement and Order will result 

### in compliance orprevent or abate pollution. 22. Access to facilitv. 

### AIJy representative ofthe Department ofEnvironmental Protection may enter the facility without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order.

8Algonquin Gas Transmission Company Trading Agreement and 

### OrderNo. 8123A 23. No effect on rights ofother oersons. This Trading Agreement and Order neither creates nor affects any rights ofpersons or municipalities that arenot parties to this Trading Agreement and Order. 24. No Creation ofPropertyRi2hts. This Trading Agreement and Order does not create 

### anyproperty rights 

### with respect to theseDERCs and CERes. 25. Notice to Commissioner ofchanges. Within 15 days ofthe date Algonquin becomes aware ofa change in any information submined to the Commissionerunder this Trading Agreement and Order, orthat any such information was inaccurate or misleading or that any relevant information was omitted, Algonquin shall submit the correct or omitted information to tbe Commissioner. 26. Notification ofnoncomoliance. 

### In the event that Algonquin becomes aware that it did not ormaynot comply, ordid not ormaynot comply on time, with anyrequirement of this Trading Agreement and Order or ofany document required hereunder, Algonquin 

### shall immediately notifybytelephone the individual identified in the nextparagraph and shall take all reasonable steps to ensure that any noncompliance or delay is avoided or, ifunavoidable, is minimized to the greatest extentpossible. Within five (5) days of the initial notice, Algonquin shall submit 

### in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance or delay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved., and Algonquin shall complyv.tith any dates which may be approved 

### in writing by the Commissioner. Notification byAlgonquin shall not excuse noncompliance or delay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated by the Commissionerin writing. 27. Submission ofdocuments. Any document required to be submitted to the Commissionerunder this TradingAgreement and Order shall, unless otherwise specified in this Trading Agreement and Orderor 

### in writing by the Commissioner, be directed to: 

### Mr. Michael Lafleur Department ofEnvironmental Protection Bureau of

### AirManagement Emissions and CreditTrading Section 

### ;9 Elm Street Hartford, Connecticut 06106-512i

9Algonquin Gas Transmission Company Trading Agreement and Order No. 8123A Algonquin consents to the issuance ofthis 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 Algonquin to the tenns and conditions ofthe Trading Agreement and Order

.. 

### Algonquin, Inc.

Date: 

# T
- 28- 20(73

Issued as a final order ofthe Commissioner of

Environmental Protection on

## _-<&,,'!/:Jjf'

# =:':;)='..J.~_3=-O=-_~, 2003

# ("')~ 

# IC

# da-dr f\iih.t1r J. Rocque, Jr.:::> 

### / Cofumissioner 

# V TOWN OF CROMWELL LAND RECORDS Mlill

..ED CERTIFIED MAIL, RETURN RECEIPT REQUESTED Certified DocumentNo.

10