# STATE OF CO. ECTICUT DEPARTMENT OF ENVIRO MENTAL PROTECTION

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The Sw.te ofConnecticut and Devon PowerLLC ) ) ) ) ) Tracing Agreement and Order No. 8251

Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and Devon Power LLC ("DP") agree that 

### it is in the public interest that they work cooperatively to improve the air qU:l!ity within the State ofConnecticut and that the use ofdiscrete emission reduction credit (''DERe'') trading to reduce nitrogen oxide ("NOx") emissions will achieve this result in a timely and cost-effective manner. A. At the request and with the agreement ofDP, the Commissionerfinds the following:
1. DP is an exempt wholesale electric generating company with its principal place ofbusiness in Sewickley, Pennsylvania. On December 15, 1999 DP purchased from The ConnecticutLight and Power Company and now owns one fossil fuel·fired electric generating station, Devon Station, at Naugatuck Avenue, Milford, Connecticut ("facility"). 2. At the facility, DP owns fuel burning equipment, consisting ofDevon Station Units II, 12. 13 and 14,40 megawau GETurbines, LM6000PA, Connecticut Pennit Numbers 105-0040, 105-0041, 105-0042, and 105-0043, respectively ("turbines"). The turbines opernte onjet fuel or natural gas and are subject to Section 22a·174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNOx emissions. Continuous emissions monitors ("CEMs") certified to 40 Code ofFederal Regulations ("CFR.") Part 75, measure NOx emissions from the turbines.
3. When operating the turbines. DP sometimes exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e)(3) ofthe Regulations. 4. Pursuant to Section 22a-174.22(j) ofthe Regulations, during the non-ozone season, DP intends to acquire approved DERCs until May 1, 2005 for the turbines at the facility.

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# PDevon Power LLC Trading Agreement and Order No. 8251

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 DP to comply with Section 22a-174-22(d)(2) ofthe Regulations through use ofDERC trading. I C. With the agreement ofOF, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 ofthe Connecticut General Statutes, hereby orders DP as follows: 1. Upon issuance ofthis Trading Agreement and Order, DP shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading. Until DP achieves pennanent compliance with the emission standard in Section 22a-174-22(e) ofthe Regulations or by May 1, 2005, whichever occurs earlier:

a. DP shall use approved DERCs as required under this Trading Agreement and Order; and b. DP shall have in its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order. 2. DERC use. Starting on October 1, 2003, and until May 1, 2005, before the first day ofeach non-Olone season, DP shall have in its possession sufficient approved DERCs for the turbines based on the following:

a. Durin£!: the non-alone season: DP shall meet a non-alone seasonal average emission limit of0.15 IbslMMBtu. Prior to October 1,2003 and October 1, 2004, DP shall estimate and acquire the amount ofDERCs or allowances required for such non-alone season needed to comply with Section 22a-174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in :tvnv1Btu from October 1 through April 30 x (estimated seasonal average NOx emission rate in Ibs/!v11v1Btu during October 1 through April 30

- (0.95 x 0.15 IbsIMMBtu))] .,. 2000 poundslton.
No later than May 31,2004, and May 1, 2005, DP shall calculate and perm::mently retire DERCs used in the preceding non-alone season as follows: Actual DERCs (tons);;; [Actual fuel use in 

### J'v11'.1Btu from October 1 through April 30 x (actual seasonal average NOx emission rate in 2Devon Power LLC Tr:J.ding Agreement and OrderNo. 8251 Ibs!MMB,u during Oc,ober 1 through April 30

- (0.95 x 0.15Ibs!MMB,u))] 2000 pounds/ton.



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# -, b, When the non'-ozone season CEM-recorded NOx emission rate is used to calculate DERCs used by the turbines, DP shall include missing data calculated in**ac~ordance** with missing data substitution procedures under40 

### CFR Part 75.'

C. DP shall not exceed any NOx pennitlimitations for the turbines. 3. DP shall make and keep records forthe turbines of: non-ozone season fuel use; nonozone season NOx emission rates, number ofoperating hours pernon-ozone season, the number ofinvalid data hours ofthe total operating hours pernon-ozone season; the number ofDERCs in its possession, purchased and used (by serial number

### if assigned) each non-ozone season in accordance with the appropriate emission rates and limits in this Trading Agreement and Order, DP shall maintain and submit such records in accordance with Section**22a-174~22** ofthe Regulations. 4. Record Keeping, DP shall retain records and supponing documentation as described in this Trading Agreement and Orderfor a minimum offive years, commencing on the clate such records were created. DP shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner. 5. Reporting. No laterthan July 30 ofevery year afterissuance ofthis Trading Agreement and Order, DP shall submitin writing to rhe Commissionerthe nonozone season fuel consumption and amount ofall DERCs used (including serial numbers (if assigned) and approved DERCs purchased from otherfacilities) for the turbines during the previous October through April time period. These reports shall be on a form prescribed by ihe Commissioner.
6. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, DP 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 toDERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a-174-22 ofthe Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from DP's NOx Budget Program compliance account upon such use. Allowances shall be considered used for compliance with Section 22a·174-22 ofthe Regulations when they are transferred from the facility's compliance acCOunt oroverdraft account to a State ofConneclicut 3

### Devon Power LLC Trading Agreement and OrderNo. 8251



### .. NOx allowance retirement account, account ID CT0000000300 in the NOx Allowance Tracking System.
7. DERC Doubling. 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, based on the gravity ofthe noncompliance, the Commissionefmay require additional upward adjustment. 8. Vinta2:e Restriction. For the purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCsJallowances shall only remain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch DERCs/al1owances. DERCs/alJowances generated/allocatedmore than five (5) calendar years ago are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above the DERCs/allowances generated/allocated priorto calendar year 2000 shall be valid for use until December 31, 2004. 9. Extension. No laterthan May 1, 2005, with respect to the turbines, DP shall comply with the requirements ofSubdivision 22a-174-22(d)(2) ofthe Regulations. However, afterfull programreview ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Commissionermay grant a written extension ofthis Trading Agreement and Order. 10. Future Compliance Report. On orbefore September 1, 2004, DP shall submit a report indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the turbines on and afterMay 1, 2005. 11. Full compliance. DP shall not be consideredin full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement nnd Orderhave been completed as approved and to 

### the Commissioner's satisfaction. 12. Approvals. DP shall use best effons to submit to 

### the Commissioner all documents required by this Trading Agreement and Orderin acomplete and approvable form. 

### Ifthe Commissionernotifies DP that any document or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and DP shall correctthe deficiencies and resubmitit within the time specified by the Commissioneror, ifno time is specifiedby the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action underthis Trading Agreement and Order, the Commissionermay approve the document orother action as submitted orperformed or with such conditions or modifications as the Commissionerdeems necessary to 

### carry out the purposes of this Trading Agreement and Order. Nothing in this paragraph shn.lJ excuse noncompliance ordelay.
4Devon Power LLC Trading Agreement and Order No. 8251

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.., 13. Definitions. As used in this Trading Agreement and Order, "ApprovedDERCs" are those for which**t~e** Commissionerhas provided written authorizDtion for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; "Non-ozone season" means the period from October 1 through April 30 in any given calendaryear. The date of "issuance" ofthiS-Trading Agreement and Orderis the date the Trading Agreement and Order is deposited in the U.S. mail or personally delivered, whichever is earlier. 14. Dates. The date ofsubmission to the Commissionerofany 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 Commissioner under Trading Agreement and Order, including but not limited to notice ofapproval or disDpproval ofany document or other action, shall be the date such notice is deposited in the U.S. mail or is personally delivered, whicheveris earlier. Except as otherwise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendarday. Any document or action which is required by this Trading Agreement and Order to be submitted orperformedby a date which falls on a Saturday, Sunday or a Connecticut orfederal holiday shall be submitted or perfonned by the next day which is not a Saturday, Sunday or Connecticut orfederal holiday. 15. Cenification 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 signedby DP or, ifDP is not an individual, by an individual who is an authorized representative ofDP, in accordance with Section 22a·174-2a(o.) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actually preparing such document, and each such individual shall cenify in writing as follows: "I have personally examined and am familiar with the information submilted 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 knowledge and belief. I understand that any false statement made in the submittedinformation is punishable as acriminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other ·applicable law." 16. Noncomolinnce. This Trading Agreement and Orderis a final order ofthe Commissioner with respect to the mntters addressed herein, nnd is nonnppe::llnble

5Devon PowerLLC Trading Agreement and Order No. 8251 and immediately enforceable. Failure to comply with this Trading Agreement and Ordermay subject DP to an injunction and penJlties.
17. False statements. Any false statement in any infonnation submitted pursu:mt to this Trading Agreement. and Orderis punishable as acriminal offense under Section 53a-157b ofthe .cofmecticut General Statutes and any other applicable law. 

# , 18. Notice oftransfer: liability ofDP. Until DP has fully complied with this Trading Agreement and Order, DP shall notify the Commissionerin writing no later than 15 days after transferring all or any portion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Order or after obtaining anew mailing orlocation address. DP's obligations under this Trading Agreement and Order shall not be affected by the passage oftitle to any property to any otherperson or municipality. 19. Commissioner's powers. 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, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties for past, present, orfuture violations oflaw. 

### If at any time the Commissionerdetennines that the actions taken by DP pursuant to this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extent or degree ofany pollution, or successfully abated orprevented.pollution, the Commissionermay institute any proceeding to require DP to undertake further investigation orfurther action to prevent or abate**violatio~s** orpollution. 20. DP's obli2ations under law. Nothing in this Trading Agreement and Order shall relieve DP ofother obligations under applicable federal, state and local law

. 21. No assurance bv Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthat the actions taken by DP pursuant to this Trading Agreement and Order will result in compliance orprevent or abate pollution. 22. Access to facility. Any representative ofthe Department ofEnvironmental Protection may enterthe facility without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order.
23. No effect on TI2hts ofother Dersons. This Trading Agreement and Order neither creates nor affects any rights ofpersons or municipalities that are not parties to this TrJding Agreement**an~** Order. 6Devon Power

# lie Trading Agreement and Order No. 8251

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........} 24. No Creation ofPropertv Rig:hIS. This Tr<lding Agreement nnd Order does nO[ cre<lte nny property rights with respect to these DERCs. 25. Norice to Commissionerofchang:es. Within 15 dnys ofthe date DP becomes aware ofa change in**an~** ihfonnation submitted to the Commissioner under this Trading Agreement and Order, or that any such infonnation was inaccurate ormisleading or th<lt any relevant infomation was omitted, DP shall submit the correct or omitted infonnation to the Commissioner

.. 26. Notification ofnoncomoliance. In the event that DP becomes aware that it did not or may not comply, ordid not ormay not comply on time, with any requirement of this Trading Agreement and Order or ofany documentrequired hereunder, DP shall immediately notify by telephone the individual identified in the next paragraph 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 ofthe initial notice, DP shall submitin 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 DP shall comply with any dates which may be approved in writing by the Commissioner. Notification by DP 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 Commissioner under this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order orin writing by the Commissioner, be directed to: Ms. Wendy Jacobs Depanment ofEnvironmental Protection Bureau ofAirManagement Emissions and CreditTrading Section 79 Elm Street Hartford, Connecticut 06106-5127

7Devon PowerLLC Trading Agreement and Order No. 8251 DP consents to the issuance ofthis Trading Agreement and Orderwithout funher notice. The undersigned cenifies that he/she is fully authorized to enter inlO this Trading Agreement and Order and to legally bind DP to**th~** tenns and conditions ofthe Tr::J.d.ing Agreement and Order. Devon PowerLLC I

Issued as afinal order ofthe Commissionerof Environment


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TOWN OF MILFORD LAND RECORDS MAILED CERTlFlED MAlL, RETURN RECEIPTREQUESTED CenifiedDocumentNo.

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