### 4. For the purposes ofthis Trading Agreement and Order, the following definitions shall apply: A. At the request and with the agreement ofRespondents, the Commissioner finds the following: Trading Agreement and Order No. 8301 ) ) ) 

### ) ) ) 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

a. Allowable Emission Limit (AEL): the applicable NOx emission limit set forth in Section 22a-174-22(e) or Section 22a-174-22(f) ofthe Regulations corresponding to the emission unit described in Table I ofthis Trading Agreement and Order
b. Allowance: CAIRNOx Ozone Season allowance originally allocated to a CAIR NOx Ozone Season unit, as defined in Section 22a-174-22c ofthe Regulations, located in the State ofConnecticut or a NOx allowance designated specifically for compliance during Ozone Season control periods and allocated to a CAIRNOx Ozone Season unit located in the State of Connecticut after the date ofissuance ofthis Trading Agreement and Order.

c. CAIR NOx Ozone Season unit: shall be as defined in Section 22a-174-22c of the Regulations 3. At the facility, Respondents operate the emission unit described in Table 1 below, which is subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNitrogen Oxide (NOx) emissions. I. This Trading Agreement and Order supersedes Trading Agreement and Order 8244 and all subsequent modifications thereto.
2. Respondents own and operate an electricity generation facility at 1 Atlantic Street in Bridgeport, Connecticut ("facility").

(Printed on Recycled Paper) 79 Elm Street

_ Hartford, CT 06106-5127 www.ct.gov/dep An Equal Opportunity Employer 

### WHEREAS, the Commissioner ofEnvironmental Protection ("Commissioner") and PSEG Power LLC, et al. ("Respondents") agree that the Commissioner may issue a permit or order to allow emissions trading in accordance with Section 22a-174-22(j) ofthe Regulations ofConnecticut State Agencies ("Regulations") as a method ofcompliance with Section 22a-174-22 ofthe Regulations: State ofConnecticut and PSEG Power LLC PSEG Fossil LLC PSEG Power Connecticut LLCPSEG Power LLC, et al. 

### 2 Trading Agreement and OrderNo. 8301

d. Discrete Emission Reduction Credit (DERC): a unitthat was generated and approved by the Commissioner in accordance with a Trading Agreement and Order issued by the Commissioner orgenerated and approved by the Commissioner in accordance with a protocol submitted and approved pursuant to Section 22a-174-38 ofthe Regulations. Such unit is equivalent to I ton of NOx emissions and may be used for emissions trading in accordance with Section 22a-174-22(j) ofthe Regulations, subjectto the provisions ofPart B of this Trading Agreement and Order.

e. CAIRNATS: "CAIRNOxOzone Season Allowance Tracking System" as defined in 40 CFR 96.302.
f. Non-Attainment Area: means the geographic area which has been designated
as nonattainment pursuantto 40 CFR 81 in accordance with the provisions of 42 USC 7407 (Section 107 ofthe Act). Pursuant to 40 CFR 81.307, the designated ozone non-attainment areas in the State ofConnecticutare: the GreaterConnecticut, CT area and the New York-Northern New Jersey-Long Island, NY-NJ-CT area.
g. Ozone Season: May 1 through September 30 ofeach calendaryear or such period as defined bythe U.S. Environmental Protection Agency, subsequentto the issuance ofthis Trading Agreement and Order.
h. Non-Ozone Season: the period ofconsecutive calendar months between two successive Ozone Seasons

Table I 

### CAm NOx Ozone Season Units NOx Emission Rates, FLERs and Allowable Limits (IbslMMBtu, unless otherwise noted)

UNIT- Heat StackTest Rates Date of Date of reg. or Input AEL FLER Last Stack Next Stack Fuel (ppmvd) (Ib/mmbtu) permit no. (MMBtu) Ib/mmbtu ppmvd Test Test @15%0, FT 4A-8L1 Jet Fuel 287 0.709 186.17 75 0.73 1/19/2010 1/19/2015 Turbine R-0166
5. The Respondents agree thatthe actual NOx emissions rate from the emission unit described in Table I, attimes, exceeds the corresponding AEL.

6. Pursuantto Section 22a-174-22G) ofthe Regulations, Respondents propose to comply with Section 22a-174-22(e) ofthe Regulations, when operating the emission unit described in Table 1 by means ofemissions trading in accordance with the provisions of this Trading Agreement and Order.
7. The Respondents propose to use a full load emission rate ("FLER") identified in Table 1PSEG Power LLC, et al. 3 Trading Agreement and OrderNo. 830I
for the purposes ofcalculating Estimated DERCs/Allowances Required and Actual DERCs/Allowances Required for those emission units described in Table I.
The Commissioner, in accordance with Section 22a-174-22G) ofthe Regulations hereby allows Respondents to comply with Section 22a-174-22 ofthe Regulations at the facility through the use of emissions trading, subject to the provisions ofthis Trading Agreement and Order.

B. With the agreement ofRespondents, the Commissioner, acting under Sections 22a-6, 22a-174, 22a176, and 22a-l77 ofthe Connecticut General Statutes, hereby orders Respondents as follows:
I. Expiration ofthis Trading Agreement and Order: The Respondents mayonly use emissions trading, subject to the provisions ofthis Trading Agreement and Order, until the date of expiration ofthis Trading Agreement and Order. The date ofexpiration ofthis Trading Agreement and Order shall be the earlierof:

a. May 31,2014;
b. The date upon which the Respondents demonstrate to the Commissioner's satisfaction that actual NOx emissions from the emission unit, at all times, do not exceed the corresponding AEL(s);

c. The date specified in any written notice from the Commissioner stating that the Respondents are no longer allowed to use emissions trading due to the Respondents' violation ofany provision ofthis Trading Agreement and Order;
or
d. The date specified in any written notice from the Commissioner, notifYing the Respondents that the Commissioner has determined the use ofemissions trading as a compliance option has been further restricted, modified ornullified by:

(i) the promulgation ofan Act, Statute, or Regulations; or (ii) the issuance ofajudgment orcourt order.
2. Respondents shall obtain and use sufficient DERCs and/orAllowances in such a manner as to comply with Paragraphs B.8 and B.9 ofthis Trading Agreement and Order. All Allowances used must come from an emission unitthat is within the same ozone nonattainment area as the Respondents. Any Allowances used to comply with this Trading Agreement and Order must be allocated for the control period that occurs during the same yearthose allowances are used for compliance with this Trading Agreement and Order. All DERCs used during the Ozone Season for each emissions unit described in Table I, shall have been generated during an Ozone Season.
3. Priorto using Allowances in accordance with Paragraphs B.8 and B.9 ofthis Trading Agreement and Orderthe Respondents shall obtain a General and/or Compliance Account in the CA1R NATS.
4. Vintage Restriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthePSEG Power LLC, et at. 4 Trading Agreement and OrderNo. 8301 Regulations and the provisions ofthis Trading Agreement and Order, DERCs shall only remain valid for five (5) calendaryears from the year ofthe generation ofsuch DERCs. DERCs olderthan five (5) calendaryears from their creation are not valid for use for compliance with Section 22a-174-22 ofthe Regulations and the provisions ofthis Trading Agreement and Order.
5. Respondent shall not cause or allow actual NOx emissions from the operation ofthe emission units described in Table I ofthis Trading Agreement and Order to exceed the corresponding FLERs. Compliance with the corresponding FLERs specified in Table I shall be determined based on the results ofemissions testing performed in accordance with Section 22a-174-22 of the Regulations orNOx emissions monitored and recorded by a continuous emissions monitoring system that was approved by the Commissioner and that complies with Section 22a-174-4 ofthe Regulations and either 40 CFR 60, Appendices B&F or40 CFR 75.

6. Ozone Season Fuel Use Restriction: Notwithstanding the provisions ofParagraph B.2 ofthis Trading Agreement and Order, when operating the emission unit described in Table I during the Ozone Season, the Respondents shall operate that unit while firing or co-firing the lowest NOx emitting fuel type or combination offuel types that the units are authorized to burn in accordance with Departmental permit, registration, or applicable regulation.
7. Notwithstanding Paragraph 8.6 ofthis Trading Agreement and Order, during the Ozone Season, the Respondents may operate the emission units described above on fuels thatresult in higheremissions ofNOx, ifeither:

a. the availability offuel oil that complies with Paragraph 8.6 is inadequate to meet the needs ofresidential, commercial and industrial users in this state and that such inadequate supply constitutes an emergency; or
b. the supply ofgaseous fuels to the emission units is interrupted due to inadequate supply or in accordance with an interruptible supply agreement between the Respondents and the gaseous fuel supplier.
8. DERC/ Allowance Use. On the first day ofeach calendar month, the Respondents shall possess a quantity ofDERCs and/orAllowances that equals orexceeds the quantity ofActual DERCs Required and/orActual Allowances Required in that month. Compliance with Paragraph B.8 ofthis Trading Agreement and Order shall be determined as follows:

a. Before the first day ofeach month, Respondents shall estimate DERCs and/or Allowances required for such calendar month for the emission unit described in Table I as follows:
Estimated DERCs/Allowances Required

## = {(Estimated fuel use in MMBtu) x ((FLER lb/mmbtu)

- (0.95 x AEL))}+2000 lbs/ton
Where:

• AEL = Allowable Emission limit, as defined in Paragraph 

### AA ofthisPSEG Power LLC, et al. 5 Trading Agreement and Order Trading Agreement and OrderNo. 8301

• Discount (0.95) 5% design margin applied to the AEL.
b. No laterthan the twentieth day ofeach month, Respondents shall calculate actual DERCs and/or Allowances used in the preceding calendar month forthe emission unit described in Table 1 as follows:

Actual DERCs/Allowances Required {(Monthly fuel use MMBtu) x «FLER lb/mmbtu)

- (0.95 x AEL))} .;- 2000 Ibs/ton

9. Non-Ozone Season DERC/Allowance Use. In addition to the requirements ofParagraph 8.8 ofthis Trading Agreement and Order, on the first day ofeach Non-Ozone Season, the Respondents shall possess a quantity ofDERCs and/or Allowances that equals orexceeds the quantity ofNon- Ozone Season Actual DERCs/Allowances Required for that Non-Ozone Season. Compliance with Paragraph B.9 ofthis Trading Agreement and Order shall be determined as follows:

a. Before the first day ofeach Non-Ozone Season, Respondents shall estimate DERCs and/or Allowances required for that Non-Ozone Season for the emission unit described in Table I based on the average actual NOx emission rate from the emission unit and an emission limit of0.15 lb/mmbtu as follows:
Estimated Non-Ozone Season DERCs/AlIowances Required {(EstimatedNon-Ozone Season fuel use in MMBtu) x «FLER Ib/mmbtu)

- (0.95 x 0.15Ib/mmbtu))}.;- 2000 Ibs/ton-L( Estimated DERCS and/or Allowances Required for all months ofthe Non-Ozone Season calculated pursuant to Paragraph 8.8)
b. No laterthan thirty (30) days afterthe end ofeach Non-Ozone Season, the Respondents shall calculate Actual Non-Ozone Season DERCs and/or Allowances used during that Non-Ozone Season for each emission unit as follows:
Actual Non-Ozone Season DERCs/AlIowances Required {(Actual Non-Ozone Season fuel use in MMBtu) x «FLER Ib/mmbtu)

- (0.95 x O.l5Ib/mmbtu))}.;- 2000 lbs/ton- L(DERCS and/or Allowances Required for all months ofthe Non-Ozone Season calculated pursuant to Paragraph 8.8)
10. On or before January 31 ofeach calendaryear, the Respondents shall deduct a quantity of DERCS from the current balance ofDERCs possessed by the Respondents and/ortransfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Accounts to the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIR NATS) suchPSEG Power LLC, et al. 

### 6 Trading Agreement and OrderNo. 830I
thatthe total is equal to the sum ofActual DERCs/Allowances Required pursuantto Paragraph 8.8 ofthis Trading Agreement and Order for the preceding calendar year, rounded up to the nearest whole ton.
II. Within ninety (90) days ofthe close ofthe Non-Ozone Season, the Respondents shall deduct a quantity ofDERCS from the current balance ofDERCs possessed by the Respondents and/or transfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Accountto the CT State NOx RetirementAccount (Account ID CT0000000300 in the CAIR NATS) such that the total is equal to Actual Non-Ozone Season DERCs/Allowances Required for the most recently completedNon-Ozone Season. Notwithstanding the control period limitations ofParagraph 8.2 ofthis Trading Agreement and Order, Allowances used to comply with this Paragraph for a Non-Ozone Season must have been originally allocated for the control periods that correspondto the same calendaryears within that Non-Ozone Season.
12. Doubling: Ifthe Actual DERCs/Allowances Required for any month, determined in accordance with Paragraph B.8, exceeds the quantity ofDERCs and/or Allowances in the Respondents' possession on the first day ofthat month, then in addition to the deduction or transfer specified in Paragraph 8.10, the Respondents shall also deduct a quantity ofDERCs from the current balance ofDERCs possessed by the Respondents and/ortransfer a quantity of Allowances from the Respondents' NOx General and/or Compliance Accountto the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIRNATS) such thatthe total is equal to Actual DERCs/ Allowances Required for that month. Such additional DERC deduction or Allowance transfer shall be performed atthe same time as the DERC deduction
or Allowance transfer specified in Paragraph B.I0 ofthis Trading Agreement and Order.
Ifthe Actual DERCs/Allowances Required for any Non-Ozone Season, determined in accordance with Paragraph 8.9, exceeds the quantity ofDERCs and/or Allowances in the Respondents' possession on the first day ofthe Non-Ozone Season, then in addition to the deduction ortransfer specified in Paragraphs B.ll, the Respondents shall also deduct a quantity ofDERCs from the current balance ofDERCs possessed bythe Respondents and/or transfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Accountto the CT State NOx RetirementAccount (Account ID CT0000000300 in the CAIR NATS) such thatthe total is equal to Actual Non-Ozone Season DERCs/ Allowances Required forthe most recently completedNon-Ozone Season. Such additional DERC deduction or Allowance transfer shall be performed atthe same time as the DERC deduction or Allowance transfer specified in Paragraph 8.11 ofthis Trading Agreement and Order. Notwithstanding the provisions ofParagraph B.12 ofthis Trading Agreement and Order, any violation ofParagraphs B.8 and 8.9 ofthis Trading Agreement and Order may be subjectto additional enforcement action as may be deemed appropriate bythe Commissioner in accordance with the Department's enforcement response policy.
13. No laterthan December 31 stofeach year, Respondents shall deduct an additional quantity of
ozone season DERCs from the current balance ofDERCs possessed by the Respondents and/ortransfer an additional quantity ofAllowances from the Respondents' NOx General and/or Compliance Accountto the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIRNATS) suchthatthe total ofDERCS/Allowances deducted and/ortransferred in accordance with this Paragraph is equal to:PSEG Power LLC, et al. 

### 7 Trading Agreement and OrderNo. 8301

6 x L{(Actual Daily Fuel Use in MM8tu) x «FLER)

- (0.95 x AEL))} 72000 Ibs/ton
Where actual daily fuel use pertains to operation ofTable 1 emissions units on days that the Connecticut eight hour ozone levels were forecasted to be "moderate to unhealthy for sensitive groups", "unhealthy for sensitive groups", "unhealthy",
or "very unhealthy" during the previous Ozone Season.
14. Atthe end ofeach calendar year, the Respondents shall demonstrate that any Allowances used for compliance with this Trading Agreement and Orderduring the year are surplus, quantifiable, enforceable and permanent. This shall be determined by demonstrating thatthe actual NOx emissions during the ozone season, as reported to the United States Environmental Protection Agency, from the emission unitto which the Allowances were originally allocated
were equal to or less than the amount ofAllowances allocated to such unit by the State of Connecticut minus the Allowances used for compliance with this Trading Agreement and Order.
15. Maintenance and Tune-up. Not more than 2 years from the date ofissuance ofthis Trading Agreement and Order, the Respondents shall perform maintenance and inspection ofthe emission unit listed in Table 1. Such maintenance and inspection shall include, but not be limited to, the following:

a. Inspectthe combustion system, and clean or replace any components ofthe combustion system as necessary, in accordance with manufacturer's specification
orcurrent good engineering practice;
b. Inspectthe system controlling the air-to-fuel ratio, and ensure that it is calibrated and functioning in accordance with the manufacturer's specifications orcurrent good engineering practice;

c. Measure the operating parameters ofthe emission unitused to determine thatthe emission unit is operating in accordance with manufacturer's specification or current good engineering practice priorto and after any adjustments are made during maintenance, tune-up, or inspection activity;
d. Make and keep records including, but not limited to, the following:
i. Demonstrationthat any maintenance, tune-up, and/or inspection activity performed on the emission unit described in Table I in accordance with Paragraph 8.15 ofthis Trading Agreement and Order has been performed in accordance with the manufacturer's specifications or current good engineering practice,
ii. The date and a description ofany maintenance, tune-up, and/or inspection activity performed on the emission unit described in Table 1 in accordance with Paragraph 8.15 ofthis Trading Agreement and Order,PSEG Power LLC, et al. 

### 8 Trading Agreement and OrderNo. 830I

16. Record Keeping; iii. The name, title and affiliation ofthe person conducting any maintenance, tune-up, and/or inspection activity performed on the emission unit described in Table I in accordance with Paragraph B.15 ofthis Trading Agreement and Order,
iv. The operating parameters ofthe emission unit used to determine that the emission unit is operating in accordance with manufacturer's specification or current good engineering practice priorto and after any adjustments are made during maintenance, tune-up, or inspection activity performed in accordance with Paragraph 8.15 ofthis Trading Agreement and Order.

a. By the close ofeach calendarday, the Respondents shall record the actual fuel type and the actual quantity ofeach type offuel in units ofvolume per day or MMbtu perday for each fuel used on the preceding day in an emission unit described in this Trading Agreement and Order;
b. On ofbefore the first day ofeach calendar month, the Respondents shall record the number ofDERCs and corresponding serial numbers and vintages for all DERCs in its possession on the first calendarday ofthat calendar month,

c. On orbefore the first day ofeach calendar month, the Respondents shall record the number ofAllowances and corresponding identification numbers and allocation control periods for all Allowances in its possession on the first calendarday ofthat calendar month,
d. On or before the first day ofeach calendar month, the Respondents shall record the number ofDERCs and corresponding serial numbers, vintages, purchase/sales dates, and sellerlbuyer for all DERCs purchased or sold during the preceding calendarmonth,

e. On orbefore the first day ofeach calendarmonth, the Respondents shall record the number ofAllowances and corresponding identification numbers, purchase/sales dates, allocation years, and sellerlbuyer for all Allowances purchased or sold during the preceding calendarmonth,
f. On orbefore the first day ofeach calendar month, the Respondents shall record the Estimated DERCs/ Allowances Required for thatcalendar month determined in accordance with Paragraph 8.8 ofthis Trading Agreement and Order.
g. On or before the twentieth calendarday ofeach calendar month, the Respondents shall record the Actual DERCs/Allowances Required for the preceding calendar month determined in accordance with Paragraph B.8 of this Trading Agreement and Order;
h. On or before January 3 I ofeach calendaryear, the Respondents shall record the quantity ofDERCs deducted in accordance with Paragraphs 8.10 andPSEG Power LLC, et al. 

### 9 Trading Agreement and OrderNo. 8301
8.12 ofthis Trading Agreement and Order for the preceding year. Such records shall include the serial number and vintage ofeach DERC deducted from the Respondents current balance pursuantto Paragraphs 8.10 and B.12 ofthis Trading Agreement and Order.

I. On orbefore January 31 ofeach calendaryear, the Respondents shall record the quantity ofAllowances transferred in accordance with Paragraphs B.I0 and 8.12 ofthis Trading Agreement and Order. Such records shall include the identification number and allocation control period ofeach Allowance transferred pursuantto Paragraphs 8.10 and 8.12 ofthis Trading Agreement and Order.
J. Within ninety (90) days ofthe close ofeach Non-Ozone Season, the Respondents shall record the Non-Ozone Season average NOx emission rate for the emission unit described in Table I, the quantity ofDERCs and/or allowances possessed on the first day ofthe Non-Ozone Season, and the quantity ofDERCs deducted and/or Allowances transferred in accordance with Paragraphs B.l1 and B.12 ofthis Trading Agreement and Order.
k. Foreach month ofthe Ozone season, the Respondents shall maintain records attesting to the fact that any DERCs deducted from its balance in accordance with Paragraphs B.I0 and 8.12 ofthis Trading Agreement and Order satisfY the requirements ofParagraph 8.2. Generatorcertification of this fact shall be sufficient.
l. On each day during the ozone season that the Respondents operate in accordance with Paragraph B.7 ofthis Trading Agreement and Order, the Respondents shall make and keep Records ofall emission unit operation in accordance with Paragraph B.7 ofthis Trading Agreement and Order, including copies ofany written correspondence from the Respondents' fuel supplierdetailing the duration and circumstances ofthe inadequate fuel oil supply or interruption ofgaseous fuel supply to the emission units.
17. Respondents shall retain records and supporting documentation required by this Trading Agreement and Order for a minimum offive years, commencing on the date such records were created. Respondents shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. All records shall be maintained in accordance with Sections 22a-174-4 and 22a-174-22 ofthe Regulations.
18. Reporting: No laterthan March I ofeveryyear after issuance ofthis Trading Agreement and Order, the Respondents shall submit to the Commissionera written report containing copies ofall ofthe records required pursuantto Paragraphs B.I6.a

- 8.16.i, and B.16.k- B.16.1 of this Trading Agreement and Order. Not laterthan July 30 ofeach calendaryear, the Respondents shall submit a written report containing copies ofall records required pursuant to Paragraph B.16.j ofthis Trading Agreement and Order. The Commissionermay prescribe the forms to be used forthe submission ofthese reports. The Respondents shall submitthese reports on such forms, ifprescribed by the Commissioner.PSEG Power LLC, et al. 10 Trading Agreement and OrderNo. 830I

19. FLER Violation. Violation ofan established FLER shall subject Respondents to make restitution by matching the quantity ofemissions ("true up") caused by the exceedance plus a 100% premium. The true up in tons ofDERCs or Allowances shall be equal to the FLER exceedance in IbsIMMBtu, multiplied bythe total heat input during the period of noncompliance divided by 2000 Ibs/ton. Ifthe period ofnoncompliance is not known, the time period from the completion ofthe last/previous Departmentwitnessed emission test through the date that FLER compliance is achieved as approved by the Commissioner shall be used. Notwithstanding this requirement, exceedance ofany FLER contained in Table I is a violation ofParagraph B.5 ofthis Trading Agreement and Order subject to enforcement action in accordance with the Department ofEnvironmental Protection's Enforcement Response Policy, in effect atthe time ofsuch violation.
20. FLER Modification. FLERs set forth in Table I ofthis Trading Agreement and Order may be modified only afterthe consent ofthe Commissioner by written modification ofthis Trading Agreement and Order.
21. Emissions Testing. The Respondents shall perform emissions testing in accordance with Section 22a-174-22(k) ofthe Regulations for each emission unit described in Table I ofthis Trading Agreement and Orderthat is not equipped with a continuous emissions monitoring system that was approved by the Commissioner and that complies with Section 22a-174-4 of the Regulations and either40 CFR 60, Appendix B&F or 40 CFR 75.
22. Control Technology Evaluation. Not more than 9 months from the date ofissuance ofthis Trading Agreement and Order, the Respondent shall submit a control technologyevaluation for the emissions unit described in Table I to reduce emissions ofNOx to, at a bare minimum, a rate orconcentration that complies with the applicable limits ofSection 22a174-22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances or DERCs. Such evaluation shall include but not be limited to the following:

a. A detailed description ofthe subjectemissions unit, currently installed emissions controls equipment and methods, all currently installed emissions monitoring systems;
b. A detailed description ofany and all additional or alternative emissions control equipment and methods or, combinations thereof, that are capable of reducing NOx emissions from the subject emissions unit to, at a bare minimum, a rate orconcentration that complies with the applicable limits of Section 22a-174-22 ofthe Regulations as may be amended, without using, tendering, orotherwise acquiring Allowances or DERCs;

c. An evaluation ofcapital costs, annual operating costs, and total annualized $/ton costs associated with the installation and operation ofany and all additional or alternative emissions control equipment and methods, or combinations thereof, that are capable ofreducing NOx emission from the subject unitto, at a bare minimum, a rate orconcentration thatcomplies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances or DERCs;PSEG Power LLC, et al. II Trading Agreement and OrderNo. 830I

d. An estimated schedule for the design, procurement, installation and operation ofany additional or alternative emissions control equipment and methods, or combinations thereof, that are capable ofreducing NOx emission from the subject unitto, at a bare minimum, a rate orconcentration thatcomplies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, without using, tendering, orotherwise acquiring Allowances or DERCs;

e. A detailed description ofany adjustments and/or modifications that must be made to the emissions monitoring systems for the subject emission unit in orderto demonstrate compliance with, at least, Section 22a-174-22 ofthe Regulations as may be amended, without using, tendering, orotherwise acquiring Allowances or DERCs; and


### f. A detailed description ofany collateral environmental impacts that will result
as a direct consequence ofthe Respondent's use ofadditionalJalternative emissions control equipmentand methods to reduce NOx emissions to, at a bare minimum, a rate orconcentration that complies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, without using, tendering, orotherwise acquiring Allowances or DERCs.
Should this Trading Agreement and Orderexpire in accordance with Paragraphs B.I(b), B.I(c), or B.1(d) within the nine-month period from date ofissuance ofthis Trading Agreement and Order, then Respondents need not comply with the provisions ofParagraph B.22.
23. Full compliance. Respondents shall not be considered in full compliance with this Trading Agreement and Order until all actions required by this TradingAgreement and Order have been completed as approved and to the Commissioner's satisfaction.
24. Approvals. Respondents shall use bestefforts to submit to the Commissionerall documents required by this Trading Agreement and Order in a complete and approvable form. Ifthe Commissioner notifies Respondents that any document orotheraction is deficient, and does not approve it with conditions or modifications, it is deemed disapproved, and Respondents shall correct the deficiencies and resubmit it within the time specified by the Commissioner or, ifno time is specified bythe Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document orotheraction under this Trading Agreement and Order, the Commissioner may approve the document orotheraction as submitted or· performed or with such conditions or modifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall
excuse noncompliance ordelay.
25. Definitions. As used in this Trading Agreement and Order "Commissioner" means the Commissioneror a representative ofthe Commissioner; The date of"issuance" ofthis 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.PSEG Power LLC, et al. 12 Trading Agreement and OrderNo. 830I

26. 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 underTrading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofany document or otheraction, 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 calendarday. Any document or action which is required bythis 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 performed bythe next day which is not a Saturday, Sunday or Connecticut orfederal holiday.
27. Certification ofdocuments. Any document, including but not limited to any notice, which is required to be submitted to the Commissioner underthis Trading Agreement and Order shall be signed by an individual, employed by the Respondents, who satisfies the criteria set forth in Section 22a-174-2a(a)(l) ofthe Regulations ofConnecticut State Agencies and bythe individual(s) responsible for actually preparing such document. Each individual who signs documents in accordance with this Paragraph shall certify in writing as follows:


### "! have personally examined and am familiar with the information submitted in this document and all attachments thereto, and Icertify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the information, that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. Iunderstand that any false statement made in the submitted information may be punishable as a criminal offense under Section 53a-157b ofthe ConnecticutGeneral Statutes and any otherapplicable law."

28. Noncompliance. This Trading Agreement and Order is a final order ofthe Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject Respondents to an injunction and penalties.
29. False statements. Any false statement in any information submitted pursuantto this Trading Agreement and Ordermay be punishable as a criminal offense under Section 53a-157b ofthe ConnecticutGeneral Statutes and any otherapplicable law.
30. Notice oftransfer; liability ofRespondents. Until Respondents have fully complied with this Trading Agreement and Order, Respondents shall notify the Commissioner in writing no later than 15 days aftertransferring all or any portion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Order or after obtaining a new mailing or location address. Respondents' obligations underthis Trading Agreement and Order shall not be affected by the passage oftitle to any property to anyother person or municipality.
31. Commissioner's powers. Nothing in this Trading Agreement and Order shall affectthe Commissioner's authority to institute anyproceeding ortake any otheraction to preventor abate violations oflaw, prevent or abate pollution, recovercosts and natural resourcePSEG Power LLC, et al. 

### 13 Trading Agreement and OrderNo. 830I damages, and to impose penalties for past, present, or future violations oflaw. Ifat anytime the Commissionerdetermines that the actions taken by Respondents pursuant to this Trading Agreement and Order have not successfully corrected all violations, fully characterized the extent or degree ofany pollution, or successfully abated or prevented pollution, the Commissioner may institute any proceeding to require Respondents to undertake further investigation or further action to preventor abate violations orpollution.
32. Respondents' obligations under law. Nothing in this Trading Agreement and Order shall relieve Respondents ofotherobligations under applicable federal, state and local law. 33. No assurance by Commissioner. No provision ofthis Trading Agreement and Orderand no action or inaction bythe Commissioner shall be construed to constitute an assurance by the Commissioner thatthe actions taken by Respondents pursuantto this Trading Agreement and Orderwill result in compliance or prevent or abate pollution.
34. Access to premises. Any representative ofthe DepartmentofEnvironmental Protection may enterthe without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed bythis Trading Agreement and Order.
35. No effect on rights ofother persons. This Trading Agreement and Order neithercreates nor affects any rights ofpersons or municipalities that are not parties to this Trading Agreement and Order.
36. No Creation ofProoertv Rights. This Consent Orderdoes notcreate any property rights with respectto these DERCs or Allowances.
37. Notice to Commissioner ofchanges. Within 15 days ofthe date Respondents become aware ofa change in any information submitted to the Commissionerunderthis Trading Agreement and Order, orthat any such information was inaccurate or misleading orthat any relevant information was omitted, Respondents shall submit the correctoromitted informationto the Commissioner.
38. Notification ofnoncompliance. In the event that Respondents become aware that itdid not or may not comply, ordid not or may not comply on time, with any requirement ofthis Trading Agreement and Orderor ofany document required hereunder, Respondents shall immediately notifY by telephone the individual identified in the next paragraph and shall take all reasonable steps to ensure that any noncompliance ordelay is avoided or, ifunavoidable, is minimized to the greatestextent possible. Within five (5) days ofthe initial notice, Respondents shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance or delay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved, and Respondents shall comply with any dates which may be approved in writing by the Commissioner. Notification by Respondents 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 bythe Commissioner in writing.
39. Submission ofdocuments. Any documentrequired to be submitted to the Commissioner underthis Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order or in writing bythe Commissioner, be directed to:

### PSEG PowerLLC, et al. 14 

### Trading Agreement and OrderNo. 8301

Supervisor Administrative Enforcement Group Engineering and Enforcement Division Bureau ofAirManagement Department ofEnvironmental Protection 79 Elm Street, 5th 

### Floor Hartford, Connecticut 06106 (860) 424-3702 Respondents consentto the issuance ofthis Trading Agreementand Order without further notice. The undersigned certifies that he/she is fully authorized to enter into this Trading Agreementand Orderand to legally bind Respondents to the terms and conditions ofthe Trading Agreement and Order.

Signature: Respondents

# =/l~'_ Type Name: _J:!MlJiL<c::Jblia9.JpP-Ll---..:oSu:te<;al..Cgj-1L;IU· o:t1.Laa

_ 

### Type**Title:_--,P~l",a,",-n""t....£M",a!±n,-,a",g~P5Cr,,----** 

### _ Date:**---"A"'p"'r"'i"'1~3'_'0'_',L___'2"'0"_1.!..:0"____** 

### _

Issued as afinal consent orderofthe Commissionerofthe Department ofEnvironmental Protection.

# 1rx-.~ 4. Gaf**S.>~e,** 

### Director Eng neering & 

### EnforcementDivision Bureau ofAir Management

TOWN OF MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Certified Document 

### 04-**-~O** -

### ~/O Date