# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of The State ofConnecticut and Middletown Power

### lie ) ) ) ) ) Trading Agreement 

### and OrderNo. 8213A

Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and Middletown PowerLLC ("MP") agree that 

### it is in the public interest that they work cooperatively to improve the 

### alTquality within the State ofConnecticut and that the use of discrete emission reduction credit ("DERC") trading to reduce nitrogen oxide ("NOx") emissions will achieve this resultin a timely and cost-effective manner. A. At the request and with the agreement ofMP. the Commissionerfinds the following: 1. This Trading Agreement and Order supercedes Trading Agreement and Order 8213 issued on March 22, 2002. 2. 

### 1v1P 

### is an exempt wholesale electric generating company with its principal place ofbusiness in SewickJey, Pennsylvania. On December 15, 1999 MP purchased from The Connecticut Light and PowerCompany and now owns one fossil fuelfired electric generating station, Middletown Station, at 1866 River Road, Middletown, Connecticut ("facility"). 3. At the facility, NRG**Mid~etown** Operations Inc. operates fuel burning equipment, consisting ofMiddletown Station Unit 2, a 120 megawatt front-fired boiler, ConnecticutRegistration Number 104-0098 ("boiler"), which is subject to Subsection 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations"). The boilerhas the dual capacity to operate on No.6 fuel oil, No. 2 fuel oil and/or natural gas. No.2 fuel oil is used primarily as an ignition fuel as part ofthe start-up procedure. A continuous emissions monitor**("CE..~\;f")** certified to 40 Code ofFederal Regulations ("CFR") Pan 75, measures NOx emissions from the boiler. 4. The boiler sometimes exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations. 5. To reduce excess NOx emissions MP has represented that it monitors and controls the combustion process ofthe boiler, and bums natural gas, so that emissions frequently can be kept below the NOx emission limitations established by Section 22a-174-22(e) ofthe Regulations.

(Printed on Re:ycled Paper) 79 Elm Slreel • Hanford, CT 06106

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....11 Equcl Opportulljry EmploytrMiddletown PowerLLC Trading Agreement and Order No. 8213A

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### \



### ........ 6. Pursuant to Section 22a-174-22(j) ofthe Regulations, during the non-ozone season, 

### :MP intends both to acquire and generate approved DERCs until September 30,2004 for the boiler at the facility. Pursuant to Section 22a-174- 22(j) of the Regulations, during the ozone season, 

### :MP intends both to acquire and generate approved Budget discrete emission reduction credits ("BDERCs") until September 30, 20Q4 1 for the boiler at the facility. 

### , 7. When properly documented by 

### M:P, 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 of Section 22a-174-22(j)(3) ofthe Regulations. Specifically, the reductions will be: Real because they will result in areduction ofactual emissions released into the air, net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions will 

### be properly measured, recorded and reported. Quantifiable because they are based on CEM data as applied in an appropriate reliable and replicable protocol, providing the rate and total mass amount ofreduction. Surplus because they are notrequired 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 ormilestone demonstration.
Permanent because the advanced control system and installation capabilities 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 are approved by the Commissioner retrospectively after the submission by:MP ofareport that documents their creation

.. 8. The emissions trading baselines ("baseline emission rate") and the allowable emission limits for the boilerin pounds permillion British thermal units ("lbsJM:M:Btu") ofheat input when operating on fuel oil and natural gas are provided on the following Table 1:

2Middlewwn PowerLLC Trading Agreement and OrderNo. 

### 8213A
Table 1 NOx Allowable Limits and Baseline Emission Rate in IbsIMMBlu Emission Fuel Heat Input Einissions AUowableIBaseline emission Unit MMBtulhr Test rate IbsIMMBtu Boiler 2 No.6 I 1,295 CE.'" 0.25 Registration No. 2-,. CEM 0.17 No. J04-0098 Nat.Gas CEM 0.20
9. Staning on October 1, 2003, and during the period from Ocwber 1 through April 30, inclusive, each year until September 30,2004, MP may only obtain approval of actual reductions in NOx emissions, generated by operating the boiler at arate that is below 0.15 IbslMlv1Btu during the non-ozone season on No.6 oil, No.2 oil and/ornatural gas. 10. The Commissioner, in accordance with the provisions ofTrading Agreement and Order 8213 and Addendum I, pUl"Suant to Section 22a-174-22(d)(3) ofthe Regulations, previously approved the non-ozone season NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers (if assigned by the Department) w these previously approved reductions ofNOx emissions are providedin Table 2 ofI.his 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 longer

### be eligible for use as aresult of the vintage restrictions are provided in Table 2 ofthis Trading Agreement and Orderin the expiration date column.
revlOuSly aDorove x s Year of Non-ozone season NOx Tons Expiration Generation DERC serial numbers Date 1999 CT99/8213(DC)NOxnozl-8 

## I 8 12131/04 2000 CTOO/8213(DC)NOxnozl-51 51 12131/05 2001 CTOI/8213(DC)NOxnozl-7 7 12131106 Table 2 

### P dNa DERC

B. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows MP to:

1. Comply with Section 22a-174-22(d)(l) ofthe Regulations through use ofBDERC and DERC trading;



# ,_. 2. Ozone season BDERCs may be generated and used inaccordance with this Trading Agreement and Order; and 3MiddletOwn PowerLLC Trading Agreement and Order No. 8213A



# c) ''-.'. 3. Upon sufficient documentation as prescribed in this Trading Agreement and Order, generate additional BDERCs and DERCs. Upon issuance ofan addendum to this Trading Agreement and Orderthe Commissionermay approve the generation of additional BDERCs and DERCs by MP retrospectively. Approved BDERCs and DERCs generated**b~?v1P** may be held 

### by:tv1P ortransferred to other persons in accordance 

### with this Trading Agreement and Order. C. With the agreement ofMP, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 ofthe ConnecticutGeneral StatU[es, hereby orders MP as follows: 1. Upon issuance ofthis Trading Agreement and Order,:MP may generate approved 

### BDERCs and DERCs as allowed underthis Trading Agreement and Orderuntil' September 30. 2004. 2. Upon issuance ofthis Trading Agreement and Order, at the facility, MP shall comply with Section 22a-174-22 ofthe Regulations lhrough emission reduction trading. Until MP achieves permanent compliance with the emission standard in Section**22a-174~** 22(e) ofthe regulation or

### by September 30, 2004 whichever occurs earlier:

a. MP shall use approved DERCs and BDERCs as required under this Trading Agreement and Order; and b. MP shall have in its possession sufficient approved BDERCs and DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order. 3. DERC 2enerarion.

a. Until September 30, 2004 when the boilerhas daily NOx emissions below the applicable baseline emission rille(s), or the proponioned baseline emission rate, or when the boilerhas seasonal NOx emissions below 0.15 Ibs/MJvfBtu during the non-ozone season starting on October 1,2003, :tv1P shall calculate the amount ofDERCs generated as follows: DERCs (tons) 

### = {[Total heat input' ofall fuels in MMBtu x «proportioned baseline emission rate2) - (the CEM-recorded. Ox emission rate'») 2000 Ibslton} x (0.90).'

I Heat input shall be calculated using the lower ofCEM-recorded data or actual fuel usage d<lla in MMBtu per unit offuel combusted.

4

### Middletown PowerLLC Trading Agreement and OrderNo. 8213A

2This rate shall be calculated by 1) multiplying the heat input ofeach fuel combusted by the baseline emission rate(s) for such fuel; 2) summing those productS; and 3) dividing the sum by the total heat input. Ifthe boiler is operating e:ltclusiveJy on one fuel, MP may replace the proportioned baseline emission rate with the applicable baseline emission rate, for that fuel. Starting on October 1, 2003, the baseline emission rate during the non-ozone season shall be 0.15 lbs/1v1MBru. 

## , 

# , 3During the ozone season until September 30, 2004 and during the non-ozone season until October 1,2003, this rate shall be calculated pursuant to the methodology described in 40 Code ofFederal Regulations Part 75 and weighted pursuant to the Department's policy statemententitled "Guidance for Calculation ofEmission Reduction Credits and Detennination ofCompliance with NO:lt RAer for Sources Subject to 40 CFR 75 (Acid Rain Sources)" dated December 18. 1998 which is attached to and incorporated by reference into this Trading Agreement and Order as part ofAttachment 1. ( An additional ten (10) percent ofall DERCs (tons) generated by the boiler shan also be retired by the facility and permanently removed from all calculations on a daily basis to assure a benefitto the environment. Starting on October 1,2003, during the non-ozone season, the ten percentdiscount shall be retired by the facility and permanently removed from all calculations on aseasonal basis to assure a benefit to the environment. 

# rl**.~** 

### b. 

### DurinS!: the ozone season until September30.2004 and durinlZ the non-ozone season until October 1. 2003: Forpurposes ofcalculating the numberof BDERCs and DERCs generated from the boiler at the facility, MP shall use the baseline emission rates for the boiler, orthe proponioned baseline emission rate setforth in footnote 2 ofparagraph C.3.a. of this Trading Agreement and Order, when simultaneously operating on more than one fuel. MP shall use the above referencedbaseline emission rate(s) when calculating the proportioned baseline emission rate.

c. Starting on October 1. 

### 2003 and until September 30. 2004 durine: the**non~** 

### ozone season: Forpurposes ofgenerating DERCs from the boiler at the facility, MP shall use 0.15 IbslM1vfBtu ofheat input wqen operating on No. 6 fuel oil, No.2 fuel oil and/ornatural gas as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (tons) generated by the boiler shall beretiredby the facility and pennanently removed from all calculations on anon-alone season basis to assure a benefit to 

### the environment.

i ) 

### '-., d. 

### Non-ozone Season Restrictions. Non-ozone season NOx DERCs generated by MP shall be created and approved in accordance with this Trading Agreement and Order, and shall remain valid until they are used or until their vintage expiration date, or until September 30, 2004 whichever occurs first.

5MiddletOwn Power LLC Trading Agreement and Order No. 8213A

e. During the ozone season until September 30.2004 and durinS!: the non-alone season until October 1. 2003: In requesting approval ofDERCs generated by the boiler, MP shall provide documentation containing a sample spreadsheet with calculation formulas used to determine reponed numbers; monthly operating repons ofactual fuel usage including the fuel BTU content, number of gallons, and Ci.ubic feet used foreach fuel type; daily MMBtu for each fuel type and actual heat input based upon CEM-recorded data; daily weighted and unweighted actual NOx emission rates (24-hour average); and DERCs generated using the baseline emission rate(s), orthe proportioned baseline emission rate set forth in footnote 2 paragraph C.3.a. ofthis Trading Agreement and Order, net ofthe ten (10) percent environmental discount.



# o f. During the non-alone season starting on October I, 2003 and until September 

### 30.2004: In requesting approval ofDERCs generated by the boiler, MP shall provide documentation containing a sample spreadsheet with calculation formulas Llsed to determine reported numbers; non-ozone season operating reports ofactual fuel usage including the fuel BTU content, number ofgallons, and cubic feet used foreach fuel type; non-ozone season MMBru foreach fuel type and actual heatinputbased upon CEM-recorded data; non-ozone season actual NOx emission rates (seven month average); and DERCs generated using the 0.15 IbsIMMBru baseline emission rate(s), net ofthe applicable environmental discount. 4. When the daily ornon-ozone season CEM-recorded NOx emission rate is used to calculate DERCs generated by the boiler, MP shall not include missing data calculated in accordance with any missing data substitution procedures, including those allowed under Section 22a-174-22b ofthe Regulations and 40 CFR Pan 75. 5. Upon sufficient documentation, as detennined by the Commissioner, thal:MP has met the requirements ofthis Trading Agreement and Order, the Commissionermay provide written approval ofDERCs generatedby:MP retrospectively. Requests for approval ofall subsequentDERCs created shall be submitted in writing to the Commissioner. Such requests shall 

### be compiled on amonthly basis and shall be submitted at least on an annual basis. Approved DERCs generated by :MP under tbis Trading Agreement and Ordermay be held ortransferred to otherpersons. 6. DERC use. Until September 30, 2004 before the first day ofeach month, and staning on October 1, 2003 also before the first day ofeach non-ozone season, 

### Jv1P should have in its possession sufficient approved DERCs for (he boiler based on the following:

6

### Middletown PowerLLC Trading Agreement and OrderNo. 8213A



### a. At all times: Before the firstday ofeach month, calculate projected worstcase DERCs 

## , requiredfor thatcalendarmonth as follows: EstimatedDERCs (tons) = 

### {[estimated worst case NOx emission rate in lbslMMBtu

- «0.95) x (NOx allowable emission limit 

### orproportioned emission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu))J x (Estimated fuel use in MMBtu)} -': 2000 pounds/tons. 

### No laterthan the twentieth day ofeach month, lv1P 

### shall calculate and permanently retireDERCs used in the preceding calendar month, as follows: (I) 

### Forthe boileron each day, determine whether the 24-hour average NOx emission rate* is less than the baseline emission rate or greaterthan the NOx allowable emission limit.

b. 

### (ii) When the boilerhas adailyNOx emission rate (24-hour average) exceeding the NOx allowableemission limit, calculate the amount ofDERCs used, as follows: Actual DERCs (tons) 

### = {[(CEM-recordedNOx daily average emission rate in IbsIMMBtu*)

- «0.95) x (NOx allowable 

### emission limit orproportioned emission rate calculated pursuant to Section 22a-174- 22(f)(2)(A) ofthe Regulations in IbslMMBtu))J x (actual fuel use in MMBtu)} + 

### 2000 poundsltons. 

### *This rate shall be calculated pursuant to the methodology described in 40 CFR Part 75.



### (iii) With the exception ofBDERCs, excess DERCs from previous months can be applied to 

### subsequent months. BDERCs are subject to the limitations set forth in paragraph C.7. ofthis Trading Agreement and Order. During- the non-ozone season starting- on October 1. 

### 2003:

7

### Middletown PowerLLC Trading Agreement and OrderNo. 8213A



# o In addition to meeting the 24-houremission 

### limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet a non-ozone season emission limit of 0.15 IbsJM:MBtu. Priorto October 1,2003 MP shall estimate and acquire 

### the amount ofDERCs or allowances required for such non-ozone season needed [0 comply with Section 22a-174-22(e)(3) ofthe Regulations as follows: I 

## , Estimated DERCs (tons);;; [Estimated fuel use in 

### :rv11v1Btu from October 1 through April 30 x (lower ofthe estimated seasonal average NOx emission rate or the proportioned 24-hour 

### allowable emission limit

### in lbsf!v1}...ffitu during October 1 through April 30)

- (0.95 x 0.15 lbsIMMBtu)].;. 2000 poundsfton. No laterthan May 31. 2004. in addition to theDERCs retired in paragraph C.6.a., calculate and permanently retireDERCs used in the preceding non-ozone season as follows: Actual DERCs (tons):;;; [Actual fuel use in M:MBtu from October 1 through April 30 x Oowerofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limitin Ibs/M::MBtu during October 1 through April 30)

- (0.95 x0.15IbslMMBtu)] .;. 2000 pounds/ton.

c. When the daily ornon-ozone season CEM-recorded NOx emission rate is used to calculate HERCs used by the boiler,:MP shall include missing data calculated in accordance with missing data substitution procedures under40 

### CFR Pan 75.

i 

### '-- 7. BDERCs shall only be used by otherNOx BudgetProgram sources located in Connecticut. BDERCs shall only be used to offset ozone season excess emissions, and shall not 

### be used forcompliance during the non-ozone season. BDERCs generated during agiven year shall only be used during the following ozone season. BDERCs are subject to all DERC requirements set forth in this Trading Agreement and Orderexcept for those requirements penaining solely to non-ozone season DERCs and as otherwise may 

### be provided. 8. 

### !v1P shall make and keep records for the boilerof: daily fuel use and fuel type; excess NOx emissions; daily NOx mass emissions, the actual NOx emission rates (24-hour average) and staning on October I, 2003 non-ozone season NOx emission rates, number ofoperating hours 

### peT day, the number ofinvalid data hours ofthe tota! operating hours per day; the number ofDERCs in its possession, created, purchased and 8Middletown PowerLLC Trading Agreement and Order o. 8213A used (by serial number ifassigned) each month in accordance with the appropriate emission rates and limits in this Trading Agreement and Order; the number ofDERCs used during the ozone season and non-ozone season (the remainder ofthe year); as well as documentation attesting to the fact that approved DERCs used during the ozone season were generated during the ozone season. Generatorcertification ofthis fact shall be sufficient. 

## ¥p shall maintain such records in accordance with Section 22a-174- 22 ofthe Regulations. 9. Record Keeping. ill shall retain records and supporting documentation as described in this Trading Agreement and Orderfor a minimum offive years, commencing on the date such records were created. 

### :MP shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. 10. Annual Emission Statement. No laterthan March 1 ofevery year after issuance ofthis Trading Agreement and Order, 

### :MP shall include with the Annual Emission Statement provided to the Commissioner, arecord ofeach sale or other transfer, and use ofany and all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Order until all such DERCs have been used or are no longerin MP's possession. l\.1P shall also include actual NOx emissions from the boiler and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERes generated and/or purchased from other facilities), generated and/or approved for the previous calendar year. These reports shall be on aform prescribedby the Commissioner and shall be in monthly increments. Should:rv:tP choose to discontinue the generation ofDERCs, 

### I\;1P will notify the Commissionerupon discontinuance. MP shall retain records and supporting documentation as described in this Trading Agreement and Order for a minimum offive years, commencing on the date such records were created. W shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. 11. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, MP may use NOx allowances, pursuant to Section 22a-174-220> ofthe Regulations to achieve all or aportion ofthe reductions required by Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe Regulations shall be subject to all restrictions and/orrequirements applicable to DERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a174-22 ofthe Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from MP's NOx Budget Program compliance account upon such use. Allowances shall 

### be considered used for compliance with Section 22a-174-22 of the Regulations when they are transferred from the facility's compliance account or

9

/

### Middletown PowerLLC Trading Agreement and 

### OrderNo. 82l3A



### C'\ "-J overdraft account to a State ofConnecticut NOx allowance retirement account, account ID CT0000000300 in the NOx Allowance Tracking System. 12. DERC Doublim::. At aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in tv1P's possession for use prior to the first day ofeach month or applicable season..!i-o'wever, based on the gravity ofthe noncompliance, the Corrunissioner may require additional upward adjustment. 13. Vinta2e ResLriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCslaliowances shall only remain valid for five (5) calendaryears from the year ofthe generation/allocation ofsuch DERCslallowances. DERCsiallowances generated/allocated more than five (5) calendaryears ago are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the**a~ove** 

### the DERCsiailowances generated/allocated priorto calendar year 2000 shall be valid for 

### use until December31, 2004. 14. Extension. No laterthan September30,2004 with respect to the boiler, MP shall comply with the requirements ofSubdivision 22a-174-22(d)(l) ofthe Regulations. However, afterfull program review ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Commissionermay grant awritten extension of this Trading Agreement and Order. 15. Future Compliance Repon. On orbefore March 31, 2004 MP shall submit arepon indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boiler OJ) 

### and after September30, 2004. 16. Full compliance. MP shall notbe considered in full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Order have been completed as approved and to the Commissioner's satisfaction. 17. Approvals. MP shall use best effons [0 

### submit to the Commissionerall documents required by this Trading Agreement and Orderin acomplete and approvable form. If 

### the Commissionernotifies h1P that any document orother action is deficient, and does not approve it with 

### conditions ormodifications, it 

### is deemed disapproved, and"MP shall correct the deficiencies and resubmit it within the time specified by the Commissioner or, ifno time is specified by the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In 

### approving any document or other action underthis Trading Agreelflent and Order, the Commissionermay approve the document orother action as submitted orperformed or with such conditions ormodifications as the Commissioner deems necessary to 

### carry our the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance ordelay.

10

/

### Middletown PowerLLC Trading Agreement and OrderNo, 8213A



## "")

... .**~,** 

### 18. Definitions. As used in this Trading Agreement and Order, "ApprovedDERCs" are those for which the Commissioner has provided written authorization for use in compliance with Section**22a~174-22** 

### ofthe Regulations; "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; "Ozone season" means the period from May 1 through September30 in any given calendar year. The date of "issuance" ofthis T{ading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. 19. 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. The date ofany notice by the ConunissionerunderTrading 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 personally delivered, whicheveris earlier. Except as otheIWise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Order means calendarday. Any document or action which is required by this Trading Agreement and Orderto be submitted orperformedby a date which falls on a Saturday, Sunday or a Connecticut orfederal holiday shall be submitted orperformed by the next day which is not a Saturday, Sunday orConnecticut orfederal holiday. 20. Certification ofdocuments. Any document, including but not limited to 

### any notice, which is required to 

### be submittedto the Commissionerunder this Trading Agreement and Order shall be signed by:MY or, if:MY is not an individual, by an individual who is an authorizedrepresentative ofthe Respondent, in accordance with Section 22a-174- 2a(a) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) .responsible for actually preparing such document, and each such individual 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 ofthose individuals responsible for obtaining the information, that the submittedinformation 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 any other 

### applicable law," 21. Noncompliance. This Trading Agreement and Orderis a final orderofthe Commissioner with respect to the matters addressed herein, and is nonappealable and lnlInediatelyenforceable. Failure to 

### comply with this Trading Agreement and Order may subject NIP to 

### an injunction and penalties.

11

### Middletown PowerLLC Trading Agreement and Order No. 8213A



# 1..... 22. False statements. Any false statement in any information submitted pursuant to this Trading Agreement and Orderis punishable as acriminal offense under Section 53a157b ofthe Connecticut General Statutes and any other applicable law. 23. Notice oftransfer: liability of:MP. Until MP has fully complied with this Trading Agreement and

### Or~r: MP shall notify the Commissionerin writing no later [han 15 days aftertransferring all or any portion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Orderor after obtaining a new mailing or location address. :MP's obligations under this Trading Agreement and Order shall not be affected by the passage oftitle to any property to 

### any otherperson or municipality. 24. Commissioner's DOwers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any other action to prevent or abate violations oflaw, preventor abate pollution, recover costs and natural resource damages, and to impose penalties for past, present, orfuture violations oflaw. If

### at any time the Commissionerdetermines thatthe actions taken by 

### :MP pursuant to 

### this Trading Agreement and Orderhave not successfully corrected all violations, fully characterizedthe extentordegree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require MP to 

### undertake furtherinvestigation orfurther action to prevent or abate violations orpollution. 25. MP's obli2ations underlaw. Nothing in this Trading Agreement and Order shall relieve MP ofotherobligations under applicable federal, state and local law. 26. No assurance by Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissioner shall be construed to 

### constitute an assurance by the Commissioner that the actions taken by 

### 1v1P pursuant to this Trading Agreement and Orderwill result in compliance orprevent or abate pollution. 27. Access to facilitv. Any representative ofthe Department ofEnvironmental Protection may enterthe facility withom priornotice for the purposes ofmonitoring and enforcing the actions required or allowedby this Trading Agreement and Order. 28. No effect on ri2:hts ofotherpersons. This Trading Agreement and Orderneithercreates nor affects any rights ofpersons ormunicipalities that are not parties to 

### this Trading Agreement and Order. 29. No Creation ofProoertv Rights. This Trading Agreement and Orderdoes nOt create any property rights with respect to 

### these DERCs.

12

### Middletown PowerLLC Trading Agreement and Order No. 8213A

."- 

### 30. Notice to 

### Commissionerof**chan~es.** 

### Within 15 days ofthe date 

### 1v1P becomes aware of achange in any infonnation submitted to 

### the Commissionerunderthis Trading Agreement and Order, orthat any such information was inaccurate ormisleading or that any relevant information was omitted,.MP shall submit the correct oromitted information to 

### the Commissioner. 

## , 31. Notification ofnoncompliance. In the event that 

### 1v1P becomes aware that it did not or may not comply, or did not or may not comply on time, with any requirement ofthis Trading Agreement and Orderorofany documentrequired hereunder,!vIP shall immediately notify by telephone the individual identified in the next paragraph and shall take all reasonable steps to 

### ensure that any noncompliance ordelay is avoided or, ifunavoidable, is minimizedto the greatest extent possible. Within five (5) days ofthe initial notice, .MP shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance ordelay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved, and.MP shall comply with any dates which may be approved in writing by the Commissioner. Notification by 

### 1v1P shall not excuse noncompliance or delay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so stated by the Commissionerin writing. 32. Submission ofdocuments. Any documentrequired to be submitted to the Commissioner under this Trading Agreement and Order shall, unless othef'Nise specified in this Trading Agreement and Order or in writing by the Commissioner, be directed to:


### Mr. Michael LaFleur Department ofEnvironmental Protection Bureau ofAir

### Management Emissions and CreditTrading Section 79 Elm Street Hartford, Connecticut 06106-5127

13

(Middletown PowerLLC Trading Agreement and OrderNo. 8213A

MP

### consents to the issuance ofthis Trading Agreement and Order without 

### funher notice. The undersigned cerrifies that he/she is fully authorized to enter into this Trading Agreement and Order and [0 legally bind MP to the terms and conditions ofthe Trading Agreement and Order. 

### MiddJe/town PowerLLC

Title: 

### Date: 

# O· lie

. arne:**--"'-'f':.LLLL!","--"''''-'''''''':..L''-''~--** 

## f(OOiDtll1.1 BiVt

# (QrJmenfo.l 

# ?0C;)8:o:?>

# ~.**J~c** 

# ;t/g<W/

Arthur

### J. Rocque, 

### Jf. 

### Commissioner order ofthe Commissionerof Environmental Protection 

# / (

. /.30 on

__

## J:.+.(**I~"=::l.......'=!.':::-'** __, 2003 

## !J Issued as afin

TOWN OF MIDDLETOWN LAND RECORDS MAILED CERTIFIED MAIL. RETIiRN RECEIPT REQUESTED 

### CenifiedDocumentNo

.

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14