AND

DEVON POWER LLC

TRADING AGREEMENT AND

ORDER NO. 8219A

MODIF1CAnON NO.1

STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECfICUT

~~,....,....,'"

TRADING AGREEMENT AND ORDER MODIF1CAnON

In the matter of a Trading Agreement and Order between the Commissioner of Environmental

Protection ("Commissioner") and Devon Power LLC (''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) of the Regulations, DP intends both [0 acquire

and generate approved DERCs until May 1, 2007 for boilers 7 and 8 at the

facility. Approved DERCs are defined for p~oses of this Trading Agreement

and Order as those for which the Commissioner has provided written authoriey for

use in compliance with Seceion 22a·174-22 of the Regulations.

3. Delete paragraph B.l. and substitute the following therefor:

Comply with Section 22a-174-22(d)(l) of the Regulations through use of Budget

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-hour emission limit in

Table 22-1 of Section 22a-174-22 of the Regulations, meet a non-ozone season

emission limit of 0.15IblMMBtu. Prior to October I, 2003, October I, 2004,

October I, 2005, and October I, 2006, DP shall estimate and acquire the amount

of non-Olone season DERCs or allowances needed to comply with Section 22a-

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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

SIP SUMMARY TABLE

Tradine: Aereement and Order No. 8219A

Devon Power 700 Naugatuck Devon cr 06460

Avenue

fdentifier IClient 7741 Town # 105 Premise # 141 Sequence # 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 of the Regulations of

Connecticut State AQencies.

Nonattainment Area Classification Severe

Annual DERCs needed Estimated. 35 non-ozone

Annual DERCs (fenerated Estimated 15 ozone season (BDERCs)

Compliance Time Period Until AorillO, 2007.

Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and

Use. (See Table 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

Boiler 7 #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 Order Modification supersedes Trading Agreement and

QrderNo. 8219A issued on April 30, 2003.

b. Calculations of credits 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 of generating DERCs from (he boiler at the facility, Devon Power LLC shall

use 0.15 IbsIMMBtu of heat 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 of all 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 Power LLC 3 Trading Agreement and Order

No. 8219A Modification No.1

(60) days of DP's discovery of the DERC shortfall. DP shall certify and report

any such DERC retirement to the Commissioner in accordance with paragraph

C.31 of this Trading Agreement and Order.

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

Extension. No later than May 1, 2007, with respect to the boilers, DP shall comply

with the requirements of Sections 22a-174-22(d)(l) and 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.

7. Delete paragraph C.15. and substitute the following therefor:

Future Compliance Report. On or before September 1, 2006, DP shall submit a

repon in writing to the Commissioner, as directed in paragraph C.32. of this

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

section 22a-174-22 of the Regulations with respect to the boilers on and after May

1,2007.

() All other terms and conditions of Tracting Agreement and Order no. 8219A issued by the

Commissioner acting under Chapter 446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 of the Connecticut General Statutes shall remain in effect.
Devon Power LLC 2 Trading Agreement and Order

No. 8219A Modification No.1

"\ :',J

5.

6.

174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) ;;;; [Estimated fuel use in 1v11v1Btu from October 1 through

April 30 x (lower of the estimated seasonal average NOx emission rate or the

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 later than May 31 of 2004, 2005. 2006. and 2007. in addition to the DERCs

retired pursuant to paragraph C.6.a. of this 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 (lower of the actual seasonal average NOx emission rate or the proportioned

24-hour allowable emission limit in 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 calendar year and July 30 (for the October through

April time period only starting in 2003) of every y~ar after issuance of this

Trading Agreement and Order, DP shall provide to the Commissioner, a record of

each sale or other transfer, and use of any and all of the DERCs approved within

and subsequent to issuance of this Trading Agreement and Order until all such

DERCs have been used or are no longer in DP's possession. DP shall also

include actual NOx emissions from the boilers and the amount of all DERCs used

(including serial numbers (if assigned) and approved DERCs generated and/or

purchased from other facilities), generated and/or approved for the previous

calendar year 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% if DERCs are not in DP's possession for use prior to the first day of each

month or applicable 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. DP shall pennanently retire the

quantity of emissions caused by the exceedance plus a 100% premium within sixty
Devon Power LiC 4 Trading Agreement and Order

No. 8219A Modification No. I

DP hereby consents to the entry of [his modification to the Trading Agreement and Order without

further notice.

Devon Power LLC

Signature:

Type Name:

Type Title:

Date:

t::;t:t:::

'Rct?loiJ&l bJ/Jlror1m~nlrJ"

± 1,,,;-(4

Entered as a modification of an Order of tile Commissioner 0 . .ronmenta} Protection

f

. //.'- iX' lh .j /

PUUlur

~:l.q/ J. Rocque, Jr.

Com.rnission~ /

V

numbered 8219A this _..!.It=*' day of ~'f'l.~~~

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No.

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