SIP DESCRIPTION - CDEC-Trading Agreement and Order

No. 8249 Modification I

I. SIP - DESCRIPTION OF DERC CREATION AND/OR USE

SIP SUMMARY TABLE

Tradinl! Al!reement and Order No. 8249 Modification 1

CDEC 490 Capitol Ave Hartford CT 06106

Identifier IClient 5772 Town # J2. Premise # 766 Sequence # 1

Contact Mr. Charles Bragg Tel: (860) 293-1990 Fax (860) 727-0283

Acting Plant Manager

Pollutant and Regulatory Standard: NOx I Section 22a-174-22 ofthe Regulations of

Connecticut State Agencies.

NODattainment Area Classification Serious

Annual DERCs needed 0

Comoliance Time Period Until Aoril 10, 2007.

Max. Emission Rate: full load emission rate (FLER) Use. (See Table 1 below):

Table 1

NOx Emission Rates and Allowable Limits

Unit Fuel Ma'{imum Stack Test FLER Allowable Date of Next

PIR number Capacity (ppmvd) lbsIMMBtu Rate Slack Stack

MMBtulhr lbsIMMBtu Test Test Due

GE eogen Nat gas 739 CEM CEM .15 NA' NA

turbine

#2 oil

P-75-0064

II. SPECIAL REOUIREMENTS

a. This Trading Agreement and Order Modification supersedes Trading Agreement and

Order No. 8249A issued on September 19,2003.

b. Calculations of credits used shall be as specified in Trading Agreement and Order No.

8249A.

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STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT

AND

CAPITOL DISTRICT ENERGY CENTER

COGENERATION ASSOCIATES

TRADING AGREEMENT AJ'ID

ORDER NO. 8249

MODIFICATION NO.1

TRADING AGREEMENT AND ORDER MODIFICATION

In the maner of aTrading Agreement and Order between the Commissioner of Environmental

Protection ("CommiSSIOner") and Capiroi District Energy Centcr Cogel1eration Associates

("CDEC").

WHEREAS. the Commissioner and COEC, having agreed to the terms and conditions set

forth in Trading Agreement and Order No. 8249 signed by the Commissioner on September 29.

2003, do now, by mutual agreement, modify said Trading Agreement and Order as follows:

i I. Delete the date May I, 2005, and substitute therefor May 1,2007, in paragraphs

A.4. and C.1.

2. Delete paragraph C.2. and substitute the following therefor:

DERC use. Starting on October I, 2004, and until May I, 2007, before the first

day of each non-ozone season, CDEC shall have in irs possession sufficient

approved DERCs for the turbine based on the following:

a. During the non-ozone season:

CDEC shall meet a non-ozone seasonal average emission limit of 0.15

ibsIMMBtu. Prior to October I, 2004, October I, 2005 and October I, 2006,

CDEC shall estimate and acquire the amount of DERCs or aUowances

required for such non-ozone season needed to comply with St:Cuon 22a-174-

22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) = [Estimated fuel use in MMBtu from October 1

through April 30 x (estimated seasonal average

NOx emission rate in IbsfM}vffitu during October

I through April 30 - (0.95 x 0.15 IbsIMMBtu))] +

2000 pounds/ton.

No iater than May 31, 2005, May 3i, 2006, and May 31, 2007, when the

turbine has a non~ozone seasonal average actual NOx emission rate

(Printc:d on Rc:cyclc:d Papc:r)

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Capitol District Energy Center

Cogeneration Associates

2 Trading Agreement and Order

No. 8249 Modification No. I

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3.

4.

exceeding 0.15IbslMMBtu, CDEC shall calculate and pennanently retire the

amount of DERCs used in the preceding non-ozone season as follows:

Actual DERCs (tons) = [Actual fuel use in MMBtu from October I through

April 30 ]I; (actual seasonal average NOx emission rate

in IbslMMBtu during October I through April 30 -

(0.95 x 0.15 IbslMMBtu))] + 2000 pounds/ton.

b. When the non-ozone season CEM-recorded NOx emission rate is used to

calculate DERCs used by the turbine, CDEC shall include missing data

calculated in accordance with missing data substitution procedures under 40

CFR Pan 75.

c. CDEC shall not exceed any NOx pennit limitations for the turbine.

Delete paragraph C.7. and substitute the following therefor:

DERC Shorrfall. At a minimum, DERCs required shall be adjusted upwards by

100% if DERCs are not in CDEC's possession for use prior to the Mt day of

each non-ozone season. However, nothing in this Trading Agreement and Order

shall affect the Commissioner's authority to institute any proceeding or take any

other action to require additional upward adjustment, based on the gravity of any

alleged noncompliance or violation of law. CDEC shall permanently retire the

quantity ofDERCs equivalent to the excess emissions plus a 100% premium

within sixty (60) days of CDEC's discovery of the DERC shorrfall. CDEC shall

certify and report any such DERC retirement to the Commissioner in accordance

with paragraph C.Z6 of this Trading Agreement and Order.

Delete paragraph C.9. and substitute the following therefor:

Extension. No later than May I, 2007, with respect to the turbine, CDEC shall

comply with the requirements of Section 22a-174-22(d)(2)(A) of the Regulations.

There is no assurance that after full program review of this and other Trading

Agreements and Orders that the Commissioner will grant a written extension of

this Trading Agreement and Order.

5. Delete paragraph C.lO. and substitute the followin~ therefor:

Future Compliance Repon. On or before September I, 2006, CDEC shall submit

a report in writing to the Com.missoner, as directed in paragraph C.2? of this

Trading Agreement and Order, indicating how the facility shall comply with

Section 22a-174-22 of the Regulations with respect to the turbine on and after

May I, Z007.

Capitol District Energy Center

Cogeneration Associates

3 Trading Agreement and Order

o. 8249 Modification No.1

6. Delete paragraph C.13. and substitute the following therefor:

Definitions. As used in this Trading Agreement and Order, "Approved DERCs"

are those for which the Commissioner has provided written authorization for use

. in compliance with Section 22a-174-22 of the Regulations; "Commissioner"

means the Commissioner or a representative of the Commissioner; "Non-ozone

season" means the period from October I through April 30 in any given calendar

year.

7.

8.

9.

Delete paragraph C.14. and substitute the following therefor:

Dates. 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. 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 this 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 perfonned by the next day

which is not a Saturday, Sunday or Connecticut or federal holiday.

Delete the word "individual" and substitute therefor the word "Section" in

paragraph C.26.

Delete the name "Ms. Wendy Jacobs" from paragraph C.27.

All other terms and conditions of Trading Agreement and Order no. 8249 issued by the

Commissioner acting under Chapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 2241.-

177 of the Connecticut General Statutes shall remain in effect.
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Capitol District Energy Center

Cogeneration Associates

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4 Trading Agreement and Order

No. 8249 Modification NO.1

CDEC herehy consents to the entry ofthis modification to the Trading Agreement and Order

without futher notice.

Signature:

Capitol District Energy Center

Cogeneration Associates

(?Q6y )

Type Narne: Charles Bragg

Type Title: Acting Plant Manager

Date: March IS, 2005

Issued as a modification of an Order ofthe Commissioner ofEnvironmental Protection.

MAIL CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No. 70040750000321814389

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Date