79 Elm Street Hartford, CT 06106

- 5127

Mr. David Conroy, Chief Air Programs Branch Office of Ecosystem Protection U.S. EPA, EPA New E n gland One Cong r ess Street, Suite 1100 Mail Code CAB Boston MA 02114-2023 www.ct.gov/deep



### Rc: R ev i sio n of Co nnecticut's State Implementation Plan for A i r Quality for Consen t Order Modifications

Dear 

### Mr. Conroy: Affirmative Action/Equal Opportunity Emplo'

By this correspondence, pursuant to 40 CFR 51.102, Co nn ecticut fonnally requests United States Environmental Protection Agency ("EPA") r evise Connecticut's State Implementation Plan ("SIP") for Air Quality as explained in this letter and enc l osed supporting materials. This revision will incorporate two Co n sent Order Modifications into Connecticut's SIP and make such revision federally enfo r ceable.

The proposed revision to the SIP was subject t o public hearing procedures to satisfy the requirements of 40 CFR 51.102. Evidence of the public bearing is enclosed as fo l lows:

Ex hibit 

### J, public notice of h ea rin g that was posted with the other pub li c notices o n the Department of Energy and Env ironmental Prot ectio n web site at h tlp :/ /www .ct.gov/ dep/cwp/view .asp? A = 2 5 86&Q = 5 09520; Exhibit 2, letters to directors of air quality in affected sta te s, EPA, and regul ated sources; Ex hibit 

### 3, delegation of hearing officer, hearing cert i fication and hearing report; and Exh ibi t 4, Co n se nt Order Mo difi cations an d SIP narrative.

Please do n ot hesitate to contact Elizabeth M cAu liffe , Environmenta l Analyst, at (860) 424-3702 s hould you or your staff have any questio n s o r comments regarding this matter.

Date

Enclosures
cc: 

### M:s. Ann~ 

### i\rnola , U

.. EPA, EPA New~ng l and Sincerely yours,

Anne Gob in Chief Bureau o f Air Management

## Exhibit 1 

## Public Notice of HearingENV IRONM ENTA L PROTECTION
79 Um Stree t Hartford, CT 06106

- 5127 www.ct.gov/deep Affirmative Action/Equal Opportunity Employer



### Notice of Intent to Revise the State Implementat ion Plan for Air Quality
The Commissioner of Envirorunental Protection hereby gives notice of a public hearing as part of a State Implementation Plan revision proceeding. These revisions will b~ s~bm itted 

### to the U.S. Environmental Protection Agency (~P 

### A) for t heir review an d approval as a revision to the State Implementation Plan (SIP) for air quality as required by the Clean Air Act Amendments of 1990 (CAA). The public h:eariQ.g ~ill 

### address Trading Agreement and Order 8187 Modification 1 and Trading Agree

. ment and Orde r ' 8242 Modification 

### 1 for PSEG Power Connecticut LLC.

-. 

### The purpose of this revision is to allow modifications to the u sc restrictions for continuous emissions reductions credits of oxides of nitrogen emissions. The continuous emissions reductions credits of oxides of nitrogen em i ssions were approved under the requirements of Section 22a-174-22 of the Regulations ofConnectieut State Agencies.

All interested persons are invited to submit comments on the proposed amendments to the Department of Energy and Envirorunenta1 P rotec tion (DEEP), Bureau of Air Management, Engineering & 

### Enforcement Division, 79 Elm Street, Hartford, Connecticut 06106-5127. All comments should be directed to the attention of Elizabeth McAuliffe and must be received by 4:30 

### PM on October 19 , 20 1 2. Comments may be subm itted by post, or by e l ectro nic mail to elizabeth.mcauliffe@ct.gov.

In addition to accepting written comments, DEEP will also hold the public hearing described below. The Commissioner requests that any person giving oral comment at the hearing also submit a written copy of such comme nts.


### PUBLIC HEARING October 19,2012 at 10:30AM Department of 

### Ji-:nergy and Environmental Protection, 5 th Floor, Holcombe Room 79 

### Elm Street, Hartford, CT Copies of the proposed revision are available for public inspection during normal business hour s and may be obtained from E li zabeth McAuliffe at the Bureau of Air Management, Engineering & 

### Enforcement Division, 5th Floor, 79 Elm Street, Hartford , Connecticut. The same documents
are posted on DEEP's websi te at the following location: http://www.ct.gov/dep/publicnotices. For additional information, contact Elizabeth McAuliffe of the Bureau of Air Management at (860) 424-4152 or elizabeth.mcau liffe (a),ct. gov.
DEEP is an affirmative action/equal opportunity employer and service provider. In conformance with the Americans with Disabilities Act, DEEP makes every effort to provide equally effective2



### services for persons with disabilities

. Individuals with disabilities who need this information in
an 

### alternative format , to allow them to benefit from and/or participate in DEEP's programs an d services, should call 860

- 424 -3035 or e-mail the ADA Coordinator, at DEP.aaofli.ce@ct.gov

. Persons who are hearing imp aired should call the State of Connecticut relay number 71 I

. Requests for accommodations mus t be made at l east two weeks prior to the program date.
This notice is requir ed pursuant to 40 Code of Federal Regulations 51.102

.


# 1 Dat~/ C. Esty Corrunissioner

### DEP: Notice oflntent to Revise th e State Implementation Plan for Air Qua l itv P age 1 

### of 1

Di)n le l C. Esty c~.:pmluio n e r

~ 't

Ma in M enu

Outdoor Recreation Natural R esources A i r, Land, &. Wl't er M at<>rla l s & Waste M an a gement Permit s & lic e nses Laws & Regulati ons Public Parti cipat ion E ducation M aps and Sp a tial Data OEEP H ome T ran slation Djsclajmer Se l ec t Lang uage Powe red b y Ct><.giCT r a nslate



## You la
· · Home A bou t Us Progr a ms & Services P ublications Fo rm s Contact Us

Notice of Intent to Rev is e the State Implementation Plan for Air Quality

The Commissioner or Environmenta l Protection h ereby gives notice of a pub li c h eari n g as part of a State Implementation Plan rev is ion proceeding. These revisions will be submitted to the U.S. Env iro nmental Protection Agency (EPA) for their review and approval as a revision to the State Implementation P l an (SIP) for a ir qual it y as required by the Clean A ir Act Amendments of 1990 (CAA). The public hearing w ill address Trading Agreem ent and Order 8187 M odifica t io n 1 and Trading Ag reemen t and Order 82 4 2 Mod ificat i on 1 for PSEG P ower Con n ect i cut LI.C.

The pu rpose of t his revisio n is to allow modifications to the use restrictions for continuous emissions reductions credits of oxides of nitrogen emis sion s

. The con t inuous emissions reductions credits of oxides of nitrogen emissions were approved under the requirements of Section 22a- 1 7 4 -22 of the Regulations of Connecticut State Agencies.

Al l Interes t ed perso n s are in vit ed to s ubmit comments o n the propo sed amendme n ts to the Departm ent of Ene rgy and E nvironmental Pr otect i on (D EEP ), Bureau of A ir Manag ement, E ngi neering & Enfo rcement Division, 79 Elm Stree t , Hartford, Connectic ut 06106·5127. A ll comment s s hould be dir ected to the attention of Elizabeth McAuliffe and must be received by 4:30PM on October 19 , 20 1 2. Commen t s may be submitt ed by post, or by electron i c mail to ehzabeth.au;auhffe@ ct.gQJl.
In addition to accepting written comments, DEEP w 11i also h old the public hearing described below. The Com mi ssioner requests that any per so n giv in g oral comment at the hea r in g also s u bmit a written cop y of suc h comments

. PUBLIC HEARING Octo be r 19, 2012 at 10:30AM Dep artme nt of Energy and Environmental Protection, Sth Floo r , H o l com be Room 79 Elm Street, Hartford, CT Cop i es o f t he proposed r evis ion a re a vail ab l e f or public Inspection dur i ng normal bus in ess h o ur s and may be ob t ained from E lizabeth McAuli ffe at the Burea u of Air M a nagemen t, Eng i neer in g & En f orcemen t Division, 5th Floor, 79 Elm Street, H artf ord, Connecticut. The same docum ents are posted on DEEP's website at the following location: t)tt~:/l~W'lt.tLQOY.uleJ)/~~/viJ:W,ASR?a 21$~.8\Q=:lllAQ'IM~-I'jav GJD 1619

. For additional information, con tact Elizabeth M cAuliffe of the Bureau of Air Management at (860) 424
· 4152 or
e i Jz..~mcauliff.~@.tL9.Qy

. DEEP I s an affi rmative actio n/e qua l opportu n i ty employer a nd serv l co provide r

. In conformance with th e A me r ica ns with Disabili ties Act , DEEP makes every effort to provide equa ll y effective serv i ces fo r persons w1th disabilities. Indiv idu als with disabilities who need this informatio n In an alte r native format , to allow them to bene f it from and/or participate In DEEP's programs and services, should call 860·424·3035 oremail the ADA Coordinator , at DEP,aaoffice@ct

. gov. Persons who are hearing impaired should call the State of Connecticut re l ay nu m ber 711. Requests for accommodations mu s t be m ade at l east two weeks prior to the p r o gram date.
This notice i s requ ire d p ur sua nt to 40 Code of Federa l Regulations 51.102

79 Elm Stre e t, Hartford, CT 06106-5127 I Phone: 860-424-3000
1-4om~ DfEP Home CT .g

ov Home Send Feed bac1< lOQ;~ RtQ•$1er Slat o c1 C<>,.C1CUI O•WID>!t ond ~ o'ddt;onalllf.fe.DJ!<!Ul:IQ. CopytSghl o 2002 2012 Ste:e of COf'Vllrcticut



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### Exhibit 2 

## Letters to Affected States, EPA, and Regulated Sources

### Jlcauliffe, Elizabeth
Mcauliffe , Elizabeth :rom: Sent: 

### To: Friday, August 17, 2012 1:34PM 'conroy

. dave@epa.gov'; 'nancy

. seidman@state

. ma.us'; 'djshaw@gw.dec.state.ny

. us'; 'doug.m c vay@dem.ri.gov'; 'Biii.O' Sullivan@dep.state.nj.us' )ubjec t : RE: Trading Order M o d i fi ca t ions- N o ti ce of a Connecticut Department of Energy and Env i ro nmental Protec t io n Revision to the S t ate Implem entatio n Plan f or Air Quality



### Votice of a Connecticut Department of Energy and Environmental Protection Revision to the State I mplementation Plan For Air Quality

n accordance with the provi sions of Title 40 Code of Federa l Regulations Sectio n 51.102, I am sending you a ink to informati on concerning Connecticut's proposed revision to the State I mp l ementation Plan for Air Quality.
Th e revis i on will 

### address Trading Agreement and Order 8187 Modification 1 and Trading Agreement and )rder 8242 Modification 1 for P SEG Power Connectic ut LLC. The purpose of this revis i on is to allow nodifi.cations to the use restrict i ons for continuous emiss ion s reducti ons credits of oxides of nitrogen emissions. T h e cont inu ous em i ss i ons reductions credits of oxides of nitrogen emissions were approved under be requirements of Section 22a-174-22 of the Regulations of Connecticut State Agenc i es.

rhe notice and proposal are available on the Department's web s ite at the follow i ng l ink: 1ttp://www.ct.gov/dep/ cw p/view.asp?A=Z586&Q=5095ZO

P l ease feel fr ee to comment on this inf orma tion as provided in the noti ce.



### E:: lizabeth

. 

### M cAu liffe E ngineering & En f orcement Division 3ureau of Air Management :onnecticut Department of Energy and Environmental Protection 79 Elm Street , Hartford, CT 06106

- 5127 P: 860-42 4-34 58 E: e li zabet h .mca uliffe@ct.gov

Connecticut Department of 

## ENERGY & 

### ENVIRONMENTAL PROTECT ION www.ct.gov/deep Conserving, improving a nd protecting our natural resources and e nvironment ; Ensuring a c le an, affordable, relia ble , and sustai nabl e ene rgy supply.

1

### Mcauliffe, Elizabeth

From: Mcauliffe, Elizabeth Sent: To: Fr i day, August 17, 2012 1:21PM 'Silv est r i , Robert' Subject: Notice of a Connect icut Department of Energy and Environmental Protection Revision to the State Implementation Plan for Air Quality Attachments: Electronic notice to Region 1 and states.doc

Bob: 

### Notice of a Connecticut D~partment 

### of Energy and Environmental Protection Revision to the State Implementation Plan for Air Quality

In accordance with the provisions of Title 40 Code of Federal Regulations Section 51. 1 02, I am sending you a link to information concerning CoiU1ectic ut 's proposed revision to the State Implementation Plan for Air Quality.


### The revision will address Trading Agreement and Order 8187 Modification 

### 1 and Trading Agreement and Order 8242 Modification 1 for PSEG Power Connecticu t LLC. The purpose of this revision is to allow modifications to the use restrictions for continuous emissions reductions credits of oxides of nitrogen emiss ions. The continuous emiss i ons reductions credits of oxides of nitrogen emissions were approved under the requirements of Section 22a-174-22 of the Regulations of Connecticut State Agencies.

The notice and proposal are availab l e on the Department's website at the following link: ,[lttp://www.ct.gov/dep/cwp/view.asp?A=2586&Q=S09520

P l ease feel fr ee to comment on this information as provided in the notice.



### Elizabe th I. McAuliffe Enginee ring & Enforcement Division Bureau of Air Management Connecticu t Department of Energy and Environm ental Protection 79 Elm Street, Hartford, CT 06106 -5 127 P : 860-424

- 3458 E: elizabeth.mcau liff e@ct.gov

Connecticut Department of 

## ENERGY & ENVIRONMENTAL PROTECTION ymw.ct.gov/de.ru;2 Conserving, improving and protecting our natural resources and environment; Ensuring a clean, affordable, reliable, and sustainable energy supply.

1

## Exhibit 3 Delegation of Hearing Officer Hearing Certification Hearing reportConnecticu t Department of ENERGY & ENVIRONMENTAL PROTECTION 79 Elm Street Hartford, CT 06106

- 5127 www.ct.gov/deep Affirmative Action/Equal Opportunity Employer



### Delegation of Hearing Officer



### In accordance with the provisions of section 22a-2 of the Connect] cut General Statutes, E lizabeth McAuliffe of the Bureau of A i r Management is hereby appointed as Hearing Officer. The purpose of this delegation is to allow said Officer to conduct a hearing on October 19 , 2012, and to render a proposed decision regarding a proposed revision· of the State Implementation Plan (SIP) for air quality required by the Clean Air Act Amendments of 1990 (CAA). This SIP revision will be submitted to the U.S

. Environmental Protection Agency (EPA) for review and approval pursuant to CAAHEARING CERTIFICATION

This is to certify that in accordance wit h the prov i sions of Title 40 Code of Federal Re gula t ions Part. 5 J .I 02, the following act i ons occurred:


### J

. On August 16, 2012, the Department of Energy and Environmenta l Protection (Department) caused to be published a notice of i nte nt t o revise th e State Implementation Plan for Air Quality 

### (SlP).

2

. 

### Jn accordance with such notice, materials re l a t ed to the publ i c hea r ing we r e avai l able for inspection on the web site at http : //w ww.ct. go v/dep/cwp / viev{ .aSR? A =2586 &0 =50952Q, bttp://www

. ct.gov/de.Q/c w p/ vi ew.asp?a = 26 84 &q = 33 1 234&depNav GJD = 1619. , an d
ava ilabl e at the offices of the Depart ment at 79 Elm Street, Ha rtford, CT.
3. fn accordance with s uch notice, th e Depa r tment held a public h ear ing on October 19, 201.2 , at the offices of t h e Department at 79 Elm Street, Hartford, CT

. 4. Not ific a ti on of th e n o tice of the SIP revi s ion w e re electronica ll y mailed a nd re ceive d , on Au g u s t 17, 2012, by the Directors of th e air pollution co ntrol agencies in New York, New Jersey, Massachusetts and Rhode Island.

5. No tifi cation of the notice of t h e SIP revision were e l ectro nicall y mailed and r eceive d , on August 17, 2 0 1 2, by the Offic e of Ecosystem Prot ectio n , EPA New England.

6. The public notice was published on the web s it e a t**http://www.ct.gov/dep/cwp/view.asp?A 2586~0=50952Q**  and avai l able at the offices of the Department at 79 Elm Street , Hartford, CT.

Date 

## r 

# I H ea rin g Officer

### Hearing Report Hearing Date: October 19, 2012 Hearing Officer: Elizabeth McAuliffe
Revision to: The Connecticut State Implementation Plan for Air Quality concerning the following Consent Orders

. 

### J) PSEG Power C01mecticut LLC

- Trading Agreement and Order 8187 Modification 1 2) PSEG Power Connecticut LLC- Trading Agreement and Order 8242 Modification 

### 1

I. 

### Summary

On August 16 , 

### 2012, the Connecticut Department of Energy and Environmental Protection (Department) published a notice of intent on the Department's website http://www.ct.gov/dep/cwp/vicw.asp? A=2 586&Q=509520 to 

### revise the State Implementation Plan (SIP) for air quality through Orders and Modifications as 

### required pursuant to 40 Code of Federal Regulations 51.102. The purpose of this revision is to allow modifications to the use restrictions for continuous emissions reductions credits of oxides of nitrogen emissions. The cont inu ous emissions reductions credits of oxides of nitrogen emissions were approved in 

### accordance with Section 22a- 1 7 4-22 of the Regulations of Connecticut State Agencies.

The 

### proposed SIP revision was the s ubject of a 

### public hearing held on Friday, October 19 , 2012, in the Holcombe Room at 79 Elm Street, Hatiiord, CoMecticut. The Department delegated hearing officer was Elizabeth McAuliffe. In attendance at the hearing were Jaimeson Sinclair and Elizabeth McAuliffe of the Depa1iment, and Robert Silvestri from PSEG. Written comments were accepted until4:30 PM, October 19 , 2012. Typically this hearing report would include a summary of written or oral comments on the proposed SIP revision, the Department's response to the comments and any recommended changes to the proposed SIP revision. However, there were no oral o r written comments received by the Department.

IIV. Conclusion

I recommend the proposed SIP revision be submitted by the Commiss i oner of Energy and Environmental Protection to the EPA Administrator as a revi sio n to the Connecticut State Implementation Plan for Air Quality.

, 

# lliter~ Elizabetllr:McAuliffe

--- Hearing Officer

## Exhibit 4 Consent Order Modifications and SIP NarrativeConnecticut Departrnc nL of



# ~ ENF.RGY & 

### ~ENVIRONMEN T AL

~~ P R 0 T 

### E CT I 0 N 79 Elm Street Hartford, CT 06106-5127



### Mr. Richard P. Lopriore President PSEG Power Connecticut LLC l 

### Atlantic Street BridgepOJi, CT 06604

Dear Mr. Lopriore: www.ct.gov/deep Affirmat i ve Action/Equal Opporlu nity Employer



### Please find enclosed, the executed modifications of Trading Agreement and Orders #8187 and #8242. The issuance of t hese modifications to the trading o r ders is the first step in the process of removing certain restrictions on the use of the Nitrogen Oxide Continuous Emissions Reduction Cred it s (NOx CERCs) that were created by Boiler #2 at t he Bridgeport Harbor Station

. The next step involved in this process is the Depart m ent's submiss i on of a State Implementation Plan (SIP) Revision to Region 

### 1 ofthe 

### US Environmental Protection Agency (EPA). The final step in this process is EPA's incorporation ofthese order modifications into Connec t icut ' s SIP. Once all those steps
are complete, the modifications take full effect and PSEG Connecticut LLC may hold, trade, or sell the NOx CERCs in accordance with the original orders, as modified by the enclosed documents.

Over the next 60-90 days the Department will coordinate with Mr. Robert S ilv estri to prepare the SIP Revision package and have it reviewed by PSEG Power Connecticut LLC and submit it to Region 1 of USEP A. 

### This is a process with which he is very familiar. Subsequently, EPA will re vi ew and approve the documentation and amend Connecticut's SIP according to EPA's staffing resources and priorities

. Shou ld you have questions regarding this process, please do not h esitate to contact Mr. Robert Girard, the Assistant Director of Enforcement at 860-424-3702.

Sincerely,

Engineering and Enforcement Bureau of Air Management Department of Energy and Environmenta l Protecti on
Enclosures Date

Cc: Robert Silvestri, Environmental Operations Leader, PSEG Power Connecticut LLC GSR/jasConnect i cut D e p <Jrt rn en t of ENERGY & ENVIRONMENTAL PROTECTION '
,. a 7 9 Elm Street Hartfo r d , CT 06106 -5 127 www .c t .go v/deep Aff i rmative Ac t i on/ E q u al Opportu n ity Emp l oyer



### In the matter of ) ) 

### The State of Cormecticu t and ) ) 

### PSEG Power Cormecticut LLC ) (formerly Wisvest Connecticut LLC) ) Trading Agreement and Order 8187 Modification 1

Whereas, the Commi s sioner of Environmental Protect i on and Wisvest-Cormecticut LLC ("Wisvest") agreed to the terms and conditions set forth in Trading Agreement and Order 8187 and Wisve s t Cormecticut LLC underwent a name change becomin g PSEG Power Connecticut LLC and pursuant to Public Act 11-80, the Department ofEnergy and Environmental Protection became th e s uccessor agency to th e Department of Environmental Protection; the Commissioner of Energy and Environ m e n tal Protection ("Comm i ssio n e r ") and PSEG Power LLC do now, by mutual agreement, modify sa id Trading Agreement and Ord er as fo llows:
1. Delete the text Paragraph C. 5 and replace with the following: Any NOx allowances allocat ed to the boiler and received by Wisv est pursuant to Sec t ions 22a-174-22b of the Regulations of Connect i cut State Agencies shall not b e e li gi ble for conversion to offset credits. In addition, any 

### portion of the 816 ton s per year of N Ox CERCs referenced in Paragr a phs A

. 6 of Trading Agreement and Order No

. 8187 may be used as offset c redits in accordance with Pa rag raph B of Trading Agreement and Order No. 818 7.
2. All other terms and conditions of T radi n g Agreement and Order No

. 81 87 shall remai n in effect.

### PSESG Power Connecticut LLC 2 Trading Agreement and Order 8187 Modification No.1



### The Respondent hereby consents to the entry of this modification to the Trading Agreement and Order without further notice.
PSEG Power Connecticut LLC (formerly Wisvest-Connccticut LLC)
Signature:

--------- 

### Name: Michael Stagliola



# ------------------------------- Title: Plant Manager



# -------- -- -- -- ------

Issued as a 

### modification of a Trading Agreement and Order.

Gar os Dire or Engineering and Enforcement Division Bureau of A i r Management 

## flo

- Date79 Elm St r eet Hartford, CT 06106-5127 www .ct.go v/deep Affirmativ e Action/Eq u a l Opportunity Employer



### In the matter of

T h e State of Connect ic ut and

PSEG Power Coru1ecticut LLC ) ) 

### ) ) ) 

### Trading Agreement and Order 8242 Modificat i on 

### 1

Whe reas, the Co mmissi oner of E nvironmental Protection a nd PSEG Power Connec ticut LLC ("PSEG") having agreed to the terms and conditions set forth in Trad in g Agr ee ment and Order 8242 and pursuant to Public Act 11- 80 , t he Depa t i.men t ofEnergy and Environmen tal Protection is the successor agency to the Department of Environmental Protection; the Commiss i oner of Energy and Environmental Protection ("Commissio ner ") and PSEG do now, by mutual agreement, further modify said Trading Agreement and Order as follows:


### 1. Delete the text of Paragraph 

### B.S and replace with the fo llowi ng: Any NOx allowances a ll ocated to the boiler an d received by PSEG pursuant to Sections 22a-174 -22b of th e Regulations of Connecticut State Agencies shall not be elig ible for conversion to offse t credits

. In addition, any portion of the 200 tons per year ofNOx CERCs referenced in Para graphs A. 6 

### of Trading Agreeme nt and Order No. 8242 may be used as offset credits in t he State of Cmmec ticut i n accordance with Section 22a- 1 74-3a ofthe Regula tions of Connec ticut Sta t e Agencies

. Any portion of the 200 tons per year ofNOx CERCs referenced in P aragraph A.6 

### of Trading Agreement and Ord e r No

. 8242 may be transfer red and used as offset credits outside of the State of Corrnecticut provided th at: a. such transfer is perform ed in a mrum er that is allowable in accor dance with the document Improvin g Air Quality with Economic Incentive Programs {EPA -4 52/R-01-00l},and b. such transfer and use is subject to the approval of the affected s tate

. 2

. AU other t erms and cond i t ion s of Trading Agreement and Order 8242 s h a ll remain in effect.PSEG Power

- Connecticut LLC 

### 2 Trading A._ :ment and Order 8242 Modification No. I



### The Respondent hereby consents to the entry of this modification to the Tr ading Agreement and O_rder without furt h er not i ce.
PSEG Power Con n ecticut LLC Signature:

________ _ 

### Name: Michael 

### stagliol a 

### Trik: Plant Manage r



### Date:

______ _



### Issued as a modification of a Trading Agreement and Order.

G 

### yRo Du ctor Engineering and Enforcement Division Bureau of Ai.r Management DateBackground SIP Description For PSEG Power Connecticut LLC (formerly Wisve st-Co nnecticut LLC)- Modifications of Trading Agreement and Orders 8187 and 8242 August 2012

In 2000 and 2003, the Departmen t of Environmental Protection i ss ued Trading Agreement and Orders (TAO) 8187 and 8242 respectively, to create and preserve a total of 816 tons of oxides of nitrogen (NOx) continuous emissions reductions credits (CERCs). Both TAOs restrict the use of the NOx CERCs to the construction of new emissions units that would be subject to operation under an owne season NOx Budget program, as set forth in section 22a-174-22a and sec tion 22a-174-22b ofthe Re gu lations of Connecticut State Agencies (RCSA) o r a source subject to the Title 40 of the Code of Federal Regu l ations, Patt 96 ("40 CFR 96").
The State of Connecticut p roposes to modify t hose trading orders by allowing the NOx CERCs to be available for use as emission offsets to sources that are not subject to Sections 22a-174-22a and 22a-174- 22b of the RCSA and sources that are not subject to 40 CFR 96. The proposed modifications in crease the utility of the NOx CERCs created and preserved by the TAOs; while also ensuring that such uses are cons istent with the Clean Air Act and it's implementing federal and state regulations.

Justification for Modifications
The use of the NOx CERCs created and preserved by the two TAOs is limited to sources that are subject to a NOx budget program or a source t hat is subject to 40 CFR 96. The language implementing this
r estric tion resides in Parag rap h C.5 of TAO #8187 and Paragraph B.S ofTAO #8242 and was intended to protect the integrity of the ozone seaso n NOx budget. The TAOs limited the use of the CRRCs to sources that would be subject to NOx budgets once they were constructed. Subsequently, the Connecticut NOx budget regulations were repealed in 2007 and 2010 and replaced with section 22a-174-22c of the RCSA. The ozone season NOx budgets established under Section 22a-174- 22c of the RCSA arc much lower than the preceding ozone season NOx budgets and do not in c lud e any portion of the 816 tons ofNOx CERCs referred to in TAO #8 18 7 or any portion of the 200 tons NOx CERCs referr ed to in TAO #8242_ Since these emissions reductio11 are no longer part ofthe budget, they do not impact the budget or weaken the inte grity of the budget. Consequently, restricting the use of the NOx credits referred to in TAOs #8187 and #8242 to sou r ces that are subject to an ozone seaso n NOx budget program is no longer necessary.
For the reasons indicat ed above, these restricti on in Paragraph C.S ofT AO #8187 and Paragraph B. S of TAO #8242 arc no lon ger necessary. Therefore, the Modifications eliminate these restrictions while maintaining all other conditions of the TAOs.

T hi s SIP action is proposed by the Con necti cut Department of Energy and Environmental Protection to satis fy the requirements of sect ion 22a-174-22 of the Regulations of Con n ecticut State Agencies. Specifically, Modifications of Trading Agreement and Orders 8187 and 8242 are being presented to the Administrator of the US Environmenta l Protection Agency for approval in accordance with the provisions of42 U.S.C. 7401-7671, et seq
.