AND DEVON POWER LLC TRADING AGREEMENT AND ORDER NO. 8219A MODIF1CAnON NO.1 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECfICUT

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TRADING AGREEMENT AND ORDER MODIF1CAnON 

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### the matterofaTrading Agreementand Orderbetween the CommissionerofEnvironmental Protection ("Commissioner") and Devon PowerLLC (''DP''). WHEREAS, the Commissioner and DP, having agreed to the terms and conditions set forth in Trading Agreement and Order No. 8219A issued on April 30, 2003, do now, by mutual agreelJlent, modify said Trading Agreement and Order as follows: 1. Delete the date September 30. 2004, and substitute therefor May 1, 2007, in paragraphs A.9., C L, C2., C3.a., C.3.a. footnote 3, C3.b., C.3.c., C3.d., C.3.e., C3.1., and C6. 

# o 2 Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a·174-22(j) ofthe Regulations, DP intends both [0 acquire and generate approvedDERCs until May 1, 2007 for boilers 7 and 8 at the facility. Approved DERCs are defined for**p~oses** ofthis Trading Agreement and Order as those for which the Commissioner has provided written authoriey for use in compliance with Seceion 22a·174-22 ofthe Regulations. 

### 3. Delete paragraph 

### B.l. and substitute the following therefor: Comply with Section 22a-174-22(d)(l) ofthe Regulations through use ofBudget Discrete Emission Reduction Credit ("BDERC") and DERC trading. 4. Delete paragraph 

### C.6.b. and substitute the following therefor: During the 

### non-Olone season: During the period from October 1 through April 30, inclusive, each year until May I, 2007, the boilers shall, 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 of0.15IblMMBtu. Prior to October I, 2003, October I, 2004, October I, 2005, and October I, 2006, DP shall estimate and acquire the amount ofnon-Olone season DERCs or allowances needed to comply with Section 22a-**(Print~d** on Re;ycled Papet) 79 Elm Sneet • H'HlrOtd, CT 06106·5127 hup:J!dep.Slalc.cl.US An Equal Opportuniry ("'playa

### SIP DESCRIPTION

- Devon Power LLC -Trading Agreement and Order No. 8219A Modificotion I 1. SIP

- DESCRIPTION OF DERC CREATION AND/OR USE SIPSUMMARY TABLE Tradine: Aereement and Order No. 8219A Devon Power 700 Naugatuck Devon

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# I Client 7741 Town # 105 Premise #

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### 2. Contact Ms. Cynthia Karlic Tel: (860) 343-6962 Fax (860) 343-6969 Rel!ional ManaQer Pollutant and Regulatory Standard: NOx Section 22a-174-22 ofthe Regulations of Connecticut State AQencies. Nonattainment Area Classification Severe Annual DERCs needed Estimated. 35 non-ozone Annual DERCs (fenerated Estimated 15 ozone season (BDERCs) ComplianceTimePeriod Until AorillO, 2007. Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and Use. (SeeTable I below):
Table 1 NOx Emission Rates and Allowable Limits Unit Fuel Maximum Stack Test FLER Allowable Date of Next PIR number Capacity (ppmvd) IbslMMBtu Rate Stack Stack MMBtuIhr IbsIMMBtu Test Test Due Boiler7 #6 oil 1139 CEM CEM 0.25 NA NA R-IOS-OOSS #2 oil " 

### " " 0.17 " " and Nat. gas 

### " " " 0.20 

### " " Boiler 8 Non-ozonec " 

### " " 0.15 

### " " R·IOS-OOS8 II. SPECIAL REQUIREMENTS

a. This Trading Agreement and OrderModification supersedes Trading Agreement and QrderNo. 8219A issued on April 30, 2003. b. Calculations ofcredits used or generated shall be as specified in Trading Agreement and QrderNo.8219A.
c. Starting on October 1, 2003 and until April 30, 2007 during the non-ozone season: For purposes ofgenerating DERCs from (he boiler at the facility, Devon Power LLC shall use 0.15 IbsIMMBtu ofheat input when operating on No.6 fuel oil, No.2 fuel oil and/or natural gas as the non-ozone season baseline emission rate for the boilers. Ten (10) percent ofall DERCs (tons) generated by the boiler shall be retired by the facility and pennanently removed from all calculations on a non-ozone season basis to assure a benefit La the environment.Devon PowerLLC 

### 3 Trading Agreement and Order No. 8219A Modification No.1 (60) days ofDP's discovery ofthe DERC shortfall. DP shall certify and report any such DERC retirement to the Commissionerin accordance with paragraph C.31 of this Trading Agreement and Order. 6. Delete paragraph C.14. and substitute the following therefor: Extension. No laterthan May 1, 2007, with respect to the boilers, DP shall comply with the requirements ofSections 22a-174-22(d)(l) and 22a-174-22(d)(2)(A) of the Regulations. There is no assurance that after full programreview ofthis and otherTrading Agreements and Orders that the Commissioner 

### will grant awritten extension ofthis Trading Agreement and Order. 7. Delete paragraph C.15. and substitute the following therefor: Future Compliance Report. On orbefore September 1, 2006, DP shall submit a repon in writing to the Commissioner, as directed in paragraph 

### C.32. ofthis Trading Agreement and Order, indicating how the facility shall comply with section 22a-174-22 ofthe Regulations with respect to the boilers on and afterMay 1,2007. () All otherterms and conditions ofTracting Agreement and Orderno. 8219A issuedby the Commissioner acting under Chapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 ofthe Connecticut General Statutes shall remain in effect.Devon PowerLLC 2 Trading Agreement and Order No. 8219A Modification No.1



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6. 174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) ;;;; [Estimated fuel use in 1v11v1Btu from October 1 through April 30 x (lower ofthe estimated seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in lbllv1Jvmtu during October 1 through April 30

- (0.95 x 0.15IblMMBtu)J 0- 2000 pounds/ton. No laterthan May 31 of2004, 2005. 2006. and 2007. in addition to the DERCs retired pursuant to paragraph C.6.a. ofthis Trading Agreement and Order, DP shall calculate and pennanently retire DERCs 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 (lowerofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limitin Ib!rvllvfBtu during October 1 thTough April 30

- (0.95 x 0.15IblMMBtu))] 0- 2000 pounds/ton. Delete paragraph C.lO. and substitute the following therefor: Annual Emission Statement and Non-Ozone Season Emission Statement. No later· than March 1 for the previous calendaryear andJuly 30 (for the Octoberthrough April time period only starting in 2003) ofevery**y~ar** afterissuance ofthis Trading Agreement and Order, DP shall provide to the Commissioner, arecord of each sale or othertransfer, and use ofany and all ofthe DERCs approved within and subsequentto issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longerin DP's possession. DP shall also include actual NOx emissions from the boilers and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/or purchased from otherfacilities), generated and/or approved for the previous calendaryear and October through April time period. These reports shall be on a form prescribed by the Commissioner and shall be in monthly increments, and by ozone and non-ozone seasons. ' Delete paragraph C.l2. and substitute the following therefor: DERC ShortfalL At a minimum, DERCs required shall be adjusted upwards by 100% 

### ifDERCs are not in DP's possession for use priorto the first day ofeach month or applicable season. However, nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any other action to require additional upward adjustment, based on the gravity of any alleged noncompliance or violation oflaw. DP shall pennanently retire the quantity ofemissions caused by the exceedance plus a 100% premium within sixty

### Devon PowerLiC 4 

### Trading Agreement and Order No. 8219A Modification No. I DP hereby consents to the entry of[his modification to the TradingAgreement and Orderwithout further notice. Devon PowerLLC Signature: Type Name: TypeTitle: Date: 

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MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED Certified DocumentNo.



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