# 1~~**-'~'~ ~,~p"** **~"''''t''** 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matterof 

### The State ofConnecticut and
Nonvalk Power

## LLe ) ) ) ) ) 

### Trading Agreement and OrderNo. 8218A

. 

### J

i , '- Whereas, the CommissionerofEnvironmental PrOtection ("Commissioner") and Norwalk PowerLLC (uNP") agree that 

### it is in the public interest that they work cooperatively to 

### improve the airquality within the State ofConnecticut and that the use ofdiscrete emission reduction credit ("DERC") trading to reduce nitrogen oxide ("NOx") emissions will achieve 

### this result in atimely and cost-effectivemanner. A. At the request and with the agreement ofNP, the Commissionerfinds the following:
1. This Trading Agreement and Order5upercedes Trading Agreement and Order 

### 8218 issued on March 22, 2002

. 2. NP 

### is an exempt wholesale electric generating company with its principal place ofbusiness in Sewickley, Pennsylvania. On December 15, 1999, NP purchased from The ConnecticutLight and PowerCompany and now owns one fossil fuel-fired electric generating station, Norwalk Harbor Station, at Manresa Island Avenue, South Norwalk, Connecticut ("facility"). 3. At the facility, NRG Norwalk Harbor Operations Inc. operates fuel burning equipment, consisting ofNorwalk Harbor Station Unit 1, a 164 megawan tangentially-fired boiler, and Norwalk Harbor Station Unit 2, a 172 megawatt tangentially-fired boiler Connecticut Registration Numbers 137-0028 and 137- 

### 0030 respectively ("boilers 1 and 2"), which are subject to Subsection 22a-174- 22 ofthe Regulations ofConnecticut State Agencies ("Regulations"). Boilers 1 and 2 have the dual capacity to operate on No.6 fuel and/or No.2 fuel oil. No. 2 fuel oil is used primarily as an ignition fuel as pan ofthe start-up procedure. A continuous emissions monitor ("CEM") ceItified to 40 Code ofFederal 

### Regulations ("CFR") Pan 

### 75, measures NOx emissions from boilers 1 and 2. 4. Boilers 1 and 2 sometimes exceed the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations. 5. To reduce excess NOx emissions NP has**rep~esented** that it monitors and controls the combustion process ofboilers 1 and 2, so that emissions frequently can 

### be kept below the NOx emission limitations established by Section 22a

### 174-22(e) ofthe Regulations.**(Pri.:lt~d** on**R~:::ycJcd** Piper) 

# V 79 EI:JI**Str~~l** • Hanford, 

### cr**061~'** 5127 bitp:llcI**~p.** stile.CI.1U All Equal Opponulli:y £mployu

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### . 

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# STATE OF CONNECTICUT DEPARTMENT OF E_ 'VIRONMENTAL PROTECTION

In [he milnerof The State ofConnecticut and Norwalk Power LLC 

# , ) ) ) ) ) Trading Agreement and OrderNo. 821 8A

Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and Norwalk PowerLLC ("NP") agree that it is in lhe public interest that they work cooperatively to improve the air quality within the State ofConnecticut and that the use ofdiscrete emission reduction credit ("DERe") trading to reduce nitrogen oxide (UNOx") emissions will achieve this result in a timely and cost-effective manner. A. At the request and with the agreement ofNF, the Commissionerfinds the following: 

### 1. This Trading Agreement and Order5upercedes Trading Agreement and Order 8218 issued on March 22, 2002. 2. NP is an exempt wholesale electric generating company with its prinCipal place ofbusiness in Sewickley, Pennsylvania. On December IS, 1999, NP purchased from The ConnecticutLight and Power Company and now owns one fossil fuel-fired electric generating station, Norwalk Harbor Station, at Manresa Island Avenue, South Norwalk, Connecticut ("facility"). 3. At the facility, NRG Norwalk Harbor Operations Inc. operates fuel burning equipment, consisting ofNorwalk Harbor Station Unit 1, a 164 megawan tangentially·fired boiler, and Norwalk Harbor Station Unit 2, a 172 megawatt tangentially-fired boilerConnecticutRegistration Numbers 137-0028 and 137- 0030 respectively ("boilers 1 and 2"), which are subject to Subsection 22a-174- 22 ofthe Regulations ofConnecticut State Agencies ("Regulations"). Boilers 1 and 2 have the dual capacity to operate on No.6 fuel and/or No.2 fuel oil. No. 2 fuel oil is used primarily as an ignition fuel as pan ofthe start-up procedure. A continuous emissions monitor ("CEM") certified to 40 Code ofFederal Regulations ("CFR") Part 75, measures NOx emissions from boilers 1 and 2. 4. Boilers 1 and 2 sometimes exceed the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations. 5. To reduce excess NOx emissions NP has**rep~esented** that it monitors and controls the combustion process ofboilers 1 and 2, so that emissions frequently can be kept below the NOx emission limitations established by Section 22a· 174·22(e) ofthe Regulations. (Printed on Recycled Piper) 

# V
79 EIIII Street • Hlr:!ord, CT 06106.5127 IIllP:/ldep.5111C.CI.IU An Eqlltll OPPOrtuniry EmployuNorwalk PowerLLC 

### Trading Agreement and Order No. 

### 8218A



### . , 

# U 6. Pursuant to 

### Section 22a-174-22(j) ofthe Regulations. during the non-ozone season, 

### J\rp intends both to acquire and generate approved DERCs until 

### September30,2004 for boilers land 2 at the facility. Pursuant to 

### Section 22a· 174.22(j) of the Regulations, during the ozone season, l\TP intends both to 

### acquire and generate approved Budgetdiscrete emission reduction credits ("BDERCs") un!il,September 3D, 2004 for boilers 1 and 2 at the facility

.



### .,' 7. When properly documented by 

### NP, and approve,d by 

### the Conunissioner, the emission reductions identified above, and as computed in accordance with the 

### terms ofthis Trading Agreement and Order, will 

### conform to the requirements ofSection 22a-174-220)(3) ofthe Regulations. Specifically, the reductions will be: 

### Real because they 

### will resultin areduction ofactual emissions released into the air, net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions will be 

### properly measured, recorded andreponed. Quantifiable because they are basedon CEM data as applied in an appropriate reliable andreplicable protocol, providing the rate and total mass amountofreduction. Surplus because they are notrequired by any Connecticut statute or regulation mandated by acurrent State**Implemen~ation** 

### Plan ("SIP"), and are not currentlyre1i.ed upon in any applicable anainmentplan, any reasonable further progress plan ormilestone demonstration. Permanent because the advanced control systems are in place and operating, and an appropriate tracking systemis in place to monitor all data required to verify and quantify the creation ofDERCs. Enforceable because the DERCs are approvedby the Commissioner retrospectively after [he submission by NP ofareport that documents their creation. 8. The emissions trading baselines ("baseline emission rate") and the allowable emission limits for boilers 1 and 2 in pounds per million British thermal units ("lbs/lvtMBtu") ofheat input when operating on fuel oil are provided on (he following table 1:

2Norwalk PowerLLC 

### Trading Agreement and Order No. 82l8A
Table 1 NOx Allowable Limits and Baseline Emission Rate in Ibs/l'vfMBtu Emission Fuel Heat Input Emissions AllowableIB3Seline emission Unit MMBtulhr Tost rate IbsIMMBtu Boiler I No.6 

# , 1776 CEM 0.25 Registration No.2, CEM 0.17 No. 137·0028 Boiler 2 No.6 1776 CEM 0.25 Registration No.2 CEM 0.17 No. 137·0030
9. Starting on October I, 2003, and during the period from OctOber 1 through April 30, 

### inclusive, each year until September 30,2004, NP may only obtain approval of actual reductions in NOx emissions, generated by operating boilers 1 and 2 at a rate that is below O.151bsJM:MBtu during the 

### non-Olone season on No.6 oil, andlor No. 

### 2 oil.

: 

### 10. The Commissioner, in accordance with 

### the provisions afTracting Agreement and Order 8218 and Addendum I, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, previously approved the non-Olone season NOx DERCs referenced in ,Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers (if

assigned by the Department) to these previously approved reductions ofNOx emissions are provided in Table 2 ofthis Trading Agreement and Order. DERCs are subject lO the vin13ge restrictions in this Trading Agreement and Order. Dales that after which the unused DERCs will no longerbe eligible foruse as aresult of the vintage restrictions are provided in Table 2 ofthis Trading Agreement and Orderin the expiration date column.



# o ERC Table 2 

### previouslv approved N xD 

### s Year of Non-ozone season NOx Tons 

# I Expiration Generation DERC serial numbers Date 1999 

### CT99/8218(DC)Noxnozl-7 7 

### 12/31/04 2000 

### CTOO/8218(DC)Noxnozl-96 

### 96 12131/05 2001 CfOI/8218(DC)Noxnozl-48 48 

### 12131/06

B. The Commissioner, in accordance with the provisions ofthis Trading Agreemem and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows NP to: 1. Comply with Section 22a-174-22(d)(I) ofthe Regulations through use ofBDERC and DERC trading;
3Norwalk PowerLLC Trading Agreement and Order

## No. 8218A 2. Ozone season BDERCs may be generated and used in accordance with this Trading Agreement and Order; and
3. Upon sufficient documentation as prescribed in this Trading Agreement and Order, generate additional BDERCs and DERCs. Upon issuance ofan addendum to this Trading Agreement and Orderthe Commissionermay approve the generation of additional BDERCs)tiIdDERCs by NP retrospectively. Approved BDERCs and DERCs generated by NP may be held by NP or transferred to other persons in accordance with this Trading Agreement and Order. 

### C. With the agreement ofNP, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 ofthe Connecticut General Statutes, hereby orders NP 

### as follows:
1. Upon issuance ofthis Trading Agreement and Order, NP may generate approved BDERCs and DERCs as allowed underthis Trading Agreement and Order until September 30, 2004. 2. Upon issuance ofthis Trading Agreement and Order, at the faCility, NP shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading. Until NP achieves pennanent compliance with the emission standard in Section 22a-174- 22(e) ofthe regulation orby September 30,2004, whichever occurs earlier:

a. NP shall use approved DERCs and BDERCs as required under this Trading Agreement and Order; and b. NP shall have in its possession sufficient approved BDERCs and DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order. 3. DERC generation.

a. Until September 30,2004, when boilers 1 and 2 have daily NOx emissions below the applicable baseline emission rate(s), orthe proportionedbaseline emission rate, or when boilers 1 and 2 have seasonal NOx emissions below O.15IbsJM:MBtu during the non-ozone season staning on October 1, 2003, NP shall calculate the amount ofDERCs generated as follows: DERCs (tons) 

### = ([Total heat inputl ofall fuels in MMBtu x «proportioned baseline emission rate2) - (the CEM-recorded NOx emission 

# <..J rate'))] .;. 2000 Ibslton) x (0.90).'



# ,Norwalk Power LLC Trading Agreement and Order No. 8218A



## ,r'" OJ b.

c.

d. I He:lt input sh:lll be c:uculated usine the lower ofCEM-recorded daUl or actu;!1 fuel US::l0e data in MMBtu per unit offuel cornbusted. ., This rate shall be calculated by 1) multiplying the heal input ofe3ch fuel combusted by the baseline emission rale(s) for such fuel; 2) summing those products: and 3) dividing the sum by Lhe t01al heal input. lfthe boiler is operating exclusively on one fuel. NP may replace the proponioned baseline emission rale with the applicable baseline emission rale. for th:ll fuel. Starting on Gdober 1, 2003. the baseline emission r.He during the non-ozone season shall be 0.15Ibs!MMBtu.

l During the ozone season until September 30. 2004. and during the non-ozone season until October 1,2003. this rate shall be calculated pW'Suant to the methodology described in 40 Code ofFederal Regulations Pan 75 and weighted pursuant to the Department's policy statement entitled "Guidance for Calculation ofEmission Reduction Credits and Determination ofCompli:mce with NOx RACT for Sources Subject to 40 CFR 75 (Acid Rain Sources)" dated December 18. 1998 which is attached to and incorporated by reference into this Trading Agreement and Order as part ofAnachmem 1.

•An additional ten (10) percent ofall DERCs (tons) generaled by the boiler shall also be retired by the facility and permanently removed from all calculations on a daily basis to assure a benefit to the environment. $taning on October 1,2003, during the non-ozone season, the ten percent discount shall be retired by the facility and permanently removed from all calculations on a seasonal basis to assure a benefit to the environment During: [he ozone season until September 30.2004 and during: the non-ozone season until October 1. 2003: Forpurposes ofcalculating the number of BDERCs and DERCs generated from boilers 1 and 2 at the facility, NP shall use the baseline emission rates for boilers 1 and 2, orthe proponionedbaseline emission rate set fonh in footnote 2 ofparagraph 

### C.3.a of this Trading Agreement and Order, when simultaneously operating on more than one fuel. NP shall use the above referenced baseline emission rate(s) when calculating the proponioned baseline emission rate. Starting Qn October 1,2003 and until September 30,2004 during: the nonozone season: Forpurposes ofgenerating DERCs from boilers 1 and 2 at the facility, NP shall use 0.15 IbslM:MBtu ofheat input when operating on No.6 fuel oil and/orNo.2 fuel oil as the non-ozone season baseline emission rate for boilers 1 and 2. Ten (10) percent ofall DERCs (tons) generated by boilers 1 and 2 shall be retired by the facitiry and permanently removed from all calculations on a non-ozone season basis to assure a benefit to the environment.
Non-ozone Season Restrictions

.. on-ozone season NOx DERCs generated by NP shall be created and approved in accordance with this Trading Agreement and Order, and shall remain valid until they are used or until

5Norwalk Power LLC Trading Agreement and Order No. 8218A their vintage expiration date, or until September 30,2004, whichever occurs first.

e. During the ozone season until September 30. 2004 and during the non-ozone season until October 1. 2003: In requesting approval ofDERCs generated 

### by boilers 1 and 2"NP shall provide documentation containing a sample spreadsheet**~th** calculation formulas used to detennine reponed numbers; monthly operating repons ofactual fuel usage including the fuel BTU content, number ofgallons, and cubic feet used for each fuel type; daily**~tu** for each fuel type and actual heat input based upon CEM-recorded data; daily weighted and unweighted actual NOx emission rates (24-hour average); and DERCs generated using the baseline emission rate(s), orthe proportioned baseline emission rate set forth in footnote 2 ofparagraph C.3.a. ofthis Trading Agreement and Order, net ofthe ten (10) percent environmental discount. f. During the non-ozone season starting: on October 1. 2003 and until September 30. 2004: In requesting approval ofDERCs generated by boilers 1 and 2, NP shall provide documentation containing a sample spreadsheet with calculation fonnulas used to determine reported numbers; non-ozone season operating reports ofactual fuel usage including the fuel BTU content, number ofgallons, and cubic feet used for each fuel type; non-ozone season M:Nffitu for each fuel type and actual heat input based upon CEM-recorded data; non-ozone season actual NOx emission rates (seven month average); and DERCs generated using the 0.15 Ibsl1vfMBtu baseline emission rate(s), net ofthe applicable environmental discount. 4. When the daily ornon-ozone season CEM-recorded NOx emission rate is used to calculate DERCs generated by boilers 1 and 2, NP shall not include missing data calculated in accordance with any missing data substitution procedures, including those allowed under Section 22a-174-22b ofthe Regulations and 40 CFR Part 75. 5. Upon sufficient documentation, as determined by the Commissioner, that NP has met the requirements ofthis Trading Agreement and Order, the Commissioner may provide written approval ofDERCs generatedby NP retrospectively. Requests for approval ofall subsequentDERCs created shall be submitted in writing to the Commissioner. Such requests shall be compiled on amonthly basis and shall be submitted at least on an annual basis. Approved DERCs generated by NP under this Trading Agreement and Order may be held ortransferred to other persons. 6. DERC use. Until September 30, 2004, before the first day ofeach month, and starting on October 1, 2003 also before the first day ofeach non-ozone season, NP 6Norwalk PowerLLC Trading Agreement and Order No. 8218A 

### should have in its possession sufficient approved DERCs for boilers 1 and 2based on the following:

a. At all times: Before the first day ofeach month, calculate projected worst case DERCs required for that calendar month as follows:



# ... Estimated DERCs (tons) 

### = {[estimated worst case NOx emission fate in IbsIMMBtu

- «0.95) x (NOx allowable emission limit orproportioned emission rate calculated pursuam to Section 22a-174-22(O(2)(A) ofthe Regulations in IbslMMBtu»] x (Estimated fuel use in MMBtu») t 

### 2000 pounds/tons.
No laterthan the twentieth day ofeach month, NP shall calculate and pennanently retire DERCs used in the preceding calendar month, as follows:**.~** 

### :J (i) Forboilers I and 2 on each day. determine whetherthe 24-hour average NOx emission rate* is less than the baseline emission' !ate or greaterthan the NOx allowable emission limit.

b. (ii) When boiler; I and 2 have a daily NOx emission rate (24-hour average) exceeding the NOx allowable emission limit, calculate the amount ofDERCs used, as follows: Actual DERCs (tons) 

### = {[(CEM-recorded NOx daily average emission rate in IbsIMMBtu*)

- «(0.95) x (NOx allowable emission limit orproportioned emission rate calculated pursuant to Section 22a-174-22(O(2)(A) ofthe Regulations in IbsIMMBtu))J x (actual fuel use in MMBtu») + 2000 pounds/tons. ·This rate shall be calculatedpursuant to the methodology described in 40 CFR Part 75.

(iii) With the exception ofBDERCs, excess DERCs from previous months can be applied to subsequent months. BDERCs are subject to the limitations set forr.h in paragraph C.7. ofthis Trading Agreement and Order. During the non-ozone season starting on October 1, 2003:

7

### Norwalk PowerLLC Trading Agreement and OrderNo. 8218A In addition to meeting the 24-houremission limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet a non-ozone season emission limit of 0.15Ibs/1VLMBru. Priorto October 1,**2003~"P** 

### shall estimate and acquire the amount ofDERCs or allowances required for such non-ozone season needed to comply with Section**22a~174-22(e)(3)** 

### ofthe Regulations as follows: I 

## " 

# , EstimatedDERCs (tons)::; [Estimated fuel use in h11'v1Btu from October 1 through April 30 x (lower ofthe estimated seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in Ibsl111v1Btu during October 1 through April 30)

- (0.95 x 0.15IbslMMBtu)J 2000 pounds/ton. No later than May 31, 2004, in addition to the DERCs retired in paragraph C.6.a., calculate and pennanently retire DERCs used in the preceding non-ozone season as follows: Actual DERCs (tons)::; [Actual fuel use in :tv11vfBtu from October 1 through April 30 x (lowerofthe actual seasonal average NOx emission rate or the proportioned 24-hour allowable emission limitin IbsfMlv1Btu during October 1 through April 30)

- (0.95 x 0.15 IbslMMBtu)J .;- 2000 pounds!ton.

c. When the daily or non-ozone season CEM-recorded NOx emission rate is used to calculate DERCs used by boilers 1 and 2, NP shall include missing data calculatedin accordance with missing data substitution procedures under40 CFR Part 75. 7. BDERCs shall only be usedby otherNOx Budget Program sources located in Connecticut. BDERCs shall only be used to offset ozone season excess emissions, and shall not be used for compliance during the non-ozone season. BDERCs generated during agiven year shall only be used during the following ozone season. BDERCs are subject to all DERC requirements'set forth in this Trad.ing Agreement and Orderexcept for those requirements pertaining solely to non-ozone season DERCs and as otherwise may be provided. 8. NP shall make and keep records for boilers I and 2 of: daily fuel use and fuel type; excess NOx emissions; daily NOx mass emissions, the actual NOx emission rates (24- hour average) and starting on October 1, 2003 non-ozone season NOx emission rates, number ofoperating hours per day, the number ofinvalid data hours ofthe total operating hours per day; the number ofDERCs in its possession, created, purchased and 8

### Norwalk Power LLC Trading Agreement and 

### Order No. 

### 821BA used (by 

### serial number if

### assigned) each month in accordance with the appropriate emission rates and 

### limits in this Trading Agreement and Order; the numberofDERCs used during the ozone season and 

### non-Olone season (the remainderofthe year); as well as documentation attesting to the fact 

### mat approved DERCs used during the ozone season were generated during the ozone season. Generatorcertification ofthis fact shall be sufficient. NPshall maintain and submit such records in accordance with Section**22a~** 

### 174-22**~f** 

### the Regulations. 9. Record Keeping. NP shall retain records and supporting documentation as described in 

### this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. 

### 1\'1' shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofawritten request from the Commissioner. 10. Annual Emission Statement. No laterthan March 1 ofevery year afterissuance ofthis Trading Agreement and Order, NP shall include with the Annual Emission Statement provided to 

### the Commissioner, arecord ofeach sale orothertransfer, and use ofany and all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longerin NP's possession. NP shall also include actual NOx emissions from boilers 1 and 2 and the 

### amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated andlorpurchasedfrom otherfacilities), generated and/or approved for the previous calendar year. These reports shall be on afonn prescribed by

### the Commissionerand shall be in monthly increments. Should NP choose to 

### discontinue the generation ofDERCs, 

### 1\'1' will notify the Commissionerupon discontinuaIlce. NP shall retain records and supporting documentation as described in this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. NP shall provide the records specified above to 

### the Commissionerwithin thiny (30) days ofreceipt ofawritten request from the Commissioner. 

### II. AllowanceUse. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, NP may use NOx allowances, pursuant to Seetion 22a-174-22(j) ofthe Regulations to aehieve all or aportion ofthe reductions requiredby 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 andlorrequirements applicable to DERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a174-22 ofthe Regulations shall be equivalent to 

### one discrete emission reduction credit 

### and shall be deducted from NP's NOx Budget Program compliance account upon sueh use. Allowances shaIl be considered used for compliance with Section 22a-174-22 of the Regulations when they are transferred from the facility's compliance account or

9Norwalk PowerLLC 

### Trading Agreement and Order No. 8218A



## L"l 

## ('J overdraft account to a State ofConnecticut NOx allowance retirement account, account ill CT0000000300 in the NOx Allowance Tracking System. 12. DERC DoublinQ. At a minimum, DERCs required shall be adjusted upwards by 100% 

### ifDERCs are not in NP's possession for use prior to the first day ofeach month or applicable season. Hqwever, based on the gravity ofthe noncompliance, the 

### CommissionermaY';equire additional upward adjustment.
13. Vintae:e Restriction. For 

### ehe purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCs/ailowances shall only remain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch DERCs/allowances. DERCs/allowances generated/allocated more 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. 14. Extension. No laterthan September 30,2004, with respect to boilers 1 and 2, NP shall comply with the requirements ofSubdivision 22a-174-22(d)(I) ofthe Regulations. However, after full programreview ofthis and otherTrading Agreements and Orders and. ifdetennined to be appropriate, the Commissionermay grant a written extension of this Trading Agreement and Order. 15. Future Compliance Report. On orbefore March 31, 2004, NP shall submit areport indicating how the facility shall comply with Section 22a·174-22 ofthe Regulations with respect to boilers 1**an~** 2 on and after September 30, 2004. 16. Full compliance. NP shall not be consideredin full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Order have been completed as approved and to the Commissioner's satisfaction. 17. Approvals. NP shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Orderin a complete and approvable fOIm. If the Commissionernotifies NP that any document or other action is deficient, and does not approve it with conditions ormodifications, itis deemed disapproved, and NP shall correct the deficiencies and resubmit it within the time specified by the Commissioner or, ifno time is specified 

### by the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action under this Trading Agreement and Order, the Commissionermay approve the document or other action as submitted orperfonned or with such conditions ormodifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay.

10Norwalk Power LLC Trading Agreement and OrderNo. 8218A



### ;.j

, 

### . ,

.........J 18. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are those for which the Commissionerhas provided wrinen authorization for use in compliance with Section 22a·174-22 ofthe Regulations; "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; "Ozone 

### season" means the period from May 1 through September 30 in any given calendar year. The date of "issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited**in~[he** U.S. mail orpersonally delivered, whichever is earlier. 19. 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 CommissionerunderTrading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofany document orother action, shall be the date such notice is deposited in the U.S. mail oris personally delivered, whicheveris 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 by this Trading Agreement and Orderto be submitted orperfonnedby a date which falls on a Saturday, Sunday or aConnecticutorfederal holiday shall be submitted orperfonned by the next day which is not a Saturday, Sunday orConnecticut orfederal holiday. 20. Certification ofdocuments. Any document, including but notlimited to any notice, which is required to be submitted to the Commissionerunderthis Trading Agreement and Order shall be signed by NP or, ifN"P is not an individual, by an individual who is an authorized representative ofNP, in accordance with Section 22a-174-2a(a) 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: 

## "rhave personally examined and am familiar with the infonnation submittedin this document and all attachments thereto, and I cenify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the infonnation, that the submittedinformation is true, accurate and complete to the bestofmy knowledge and belief. I understand that any false statementmade in the submittedinfonnation is punishable as a criminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law." 21. Noncompliance. This Trading Agreement and Orderis a final orderofthe 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 NP to an injunction and penalties.

11

### Norwalk PowerliC Trading Agreement and 

### OrderNo. 8218A**~2.** 

### False statements. Any false statement in any infonnation submitted pursuant to this Trading Agreement and Orderis punishable as a criminal offense under Section 53a157b 

### ofthe Connecticut General Statutes and any other applicable law. 23. Notice oftransfer: liability ofl\TP. Until NP has fully complied with this Trading Agreement and OrdeI;.'NP shall notify the Conunissionerin 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 Orderor after Obtaining a new mailing orlocation address. NP's obligations underthis Trading Agreement and Order shall not be affected bythe passage oftitle to any property to any other person or municipality.
24. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding or take any other action to prevent or abate violations oflaw, preventor abate pollution, recovercosts and natural resource damages, and to impose penalties for past, present, orfuture violations oflaw. 

### Ifat any time the Commissionerdetennines that the actions taken by 1\l"Ppursuant to this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extent ordegree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require NP to undertake funher investigation orfunher action to prevent or abate violations orpollution.
25. NP's obli£ations under law. Nothing in this Trading Agreement and Order shall relieve NP ofotherobligations under applicable federal, state and local law

. 

### 26. 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 NP pursuant to this Trading Agreement and Orderwill result in compliance or**prev~nt** or abate pollution. 27. Access to facilitv. Any representative ofthe DepartmentofEnvironmental Protection may enterthe facility withoutpriornotice for the purposes ofmonitoring and enforcing the actions required or allowedby this Trading Agreement and Order. 28. No effect on ri2hts ofotherpersons. This Trading Agreement and Orderneithercreates !loraffects any rights ofpersons ormunicipalities that are not parties to this Trading Agreement and Order. 

### 29. No Creation ofPropertv Rights. This Trading Agreement and Orderdoes not create any property rights with respect [0 these DERCs.

12

### Norwalk PowerLLC Trading Agreement and 

### OrderNoo 8218A



## oJ



# u 30. Notice to Commissionerofchanees. Within IS days ofthe date 

### 1\'1' becomes aware of a change in any information submined to the Commissionerunder this Trading Agreement and Order, or that any such information was inaccurate ormisleading or that any relevant information was omitted, NP shaH submit the correct oromitted information to the Commissioner. I 

### 31. Notification ofnonc"3mpliance. In the event that NPbecomes aware that it 

### did not or may nO[ comply, ordid not ormay not comply on time, with anyrequirement ofthis Trading Agreement and Orderorofany document required hereunder, 1\T}' 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 greatest extent possible. Within five (5) days ofthe initial notice, 

### !\rp shall submit in 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 NP shall comply with any dates which may be approved in writing by the Commissioner. Notification byNP shall not excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so sratedby the Commissionerin writing. 32. Submission ofdocuments. Any documentrequired to be submittedto the Commissionerunderthis Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Orderor in writing by the Commissioner, be directed to:**~o ~chaelL2f1eur**  Department ofEnvironmental Protection Bureau ofAirManagement Emissions and Credit Trading Section 

### 79 Elm Street Hartford, Connecticut 06106-5127

13

### Norwalk PowerLLC 

### Trading Agreement and Order No. 8218A 

### NP consents to 

### the issuance ofthis Trading Agreement and Order without funher nmice. The undersigned cenifies that he/she is fully authorized to 

### enterinto this Trading Agreement and Order and to 

### legally bind NP [0 

### the terms and conditions ofthe Trading Agreement and Order. Norwalk Power, Inc.



# (l

__**£c:/td~**

.'ArthurJ. Rocque, Jr.

.

## :~);;OmmiSSiOner



# . / 

### , , 

### .:.,./ 

### ,2003 Issued as afinal orderofthe CommissionerofEnvironmental Protection 

# 1&,) 36



# J on

CITY

### OFNORWALKLAND RECORDS MAILED CERTIFIED MAlL, RETURN RECEIPT REQUESTED 

### CenifiedDocumentNo.

I 

## ,

...-'
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