SIP DESCRIPTION - City of Nonvich Department of Public Utilities-Trading Agreement

and Order No. 8119A Modification 1

I. SIP - DESCRIPTION OF DERC CREATION ANDIOR USE

SIP SUMMARY TABLE

Tradint! Aoreement and Order No. 8119A Modification 1

City of Norwich Department of Public 16 South Golden Street Norwich cr 06360

Utilities

Identifier I Client §lQl Town # 139 Premise # 105 Sequence # J

Contact Mr. Richard DeRoches Tel: (860) 823-4180 Fax (860)

General Manae:er

Pollutant and Regulatory Standard: NOx ISection 22a-174-22 of the Regulations of

Connecticut State Agencies.

Nonattainment Area Classification Serious

Annual DERCs needed Estimated 5 ozone and I non-ozone.

ComDliance Time Period Until Aori130. 2007.

Max. Emission Rate: full load emission rate (FLER) Use. (See Table I below):

Table t

NOx Emission Rates and Allowable Limits

Unit Fuel Maximum Stack Test FLER Allowable Date of Next

PIR number Capacity (ppmvd) IbsIMMBtu Rate Stack Stack

MMBtulhr IbslMMBtu Test Test Due

Rolls Royce #2 oil 249 135.5 0.62 0.29 10/10104 10/10/09

Turbine

II. SPECIAL REQUIREMENTS

a. This Trading Agreement and Order Modification supersedes Trading Agreement and

Order No. 8119A issued on April 29. 2003.

b. Calculations oCcredits used shall be as specified in Trading Agreement and Order No.

8119A.

c. City of Norwich Department of Public Utilities shall acquire and permanently retire

seven ozone season DERCs for every actual ton of excess NOx emitted from the peaking

unit during the previous ozone season based upon the actual emissions ror each day that

Connecticut one hour ozone levels were forecasted to be "moderate to unhealthful",

"unhealthful", or "very unhealthful",

STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT

AND

CITY OF NORWICH

DEPARTMENT OF PUBUC UTIT..ITIES

TRADING AGREEMENT AND

ORDER NO. 8119A

MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICATION

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

Protection ("Commissioner") and City of Norwich Department of Public Utilities ("Norwich").

WHEREAS, the Commissioner and Norwich, having agreed to the terms and conditions set

forth in Trading Agreement and Order No. 8119A signed by the Commissioner on April 29.

2003, do now, by mUlual agreement, modify said Trading Agreement and Order as follows:

1. Delete paragraph A.6. and substitute the following therefor:

Reserved.

2. Delete the date May I, 2005, and substitute (herefot May I, 2007, in paragraphs

A.7., A.9., C.l., and C.2.a.

3. Delete paragraph C.2.d. and substitute the following therefor:

During the non-ozone season: Until May I, 2007, from October 1 through April

30, inclusive, each year, the peaking unit shall, in addition to meeting the 24-hour

emission limit in Table 22-1 of Section 22a-174-22 of the Regulations, meet a

non-ozone season emission limit ofO.15IblMMBtu. Prior to October 1, 2004,

October 1,2005 and October 1, 2006, Norwich shall estimate and acquire the

amount of DERCs or allowances required for such non-ozone season needed (0

comply with Section 22a-174-22(e)(3) of the Regulations as follows:

Estima(ed DERCs ((ons) use = [Estima(ed fuel use in :MMBtu from October 1

through April 30 x (allowable emission rate in

IbslMMBtu - (0.95 x 0.151b1MMBtu))] + 2000

lbs/ton

4. Delete paragraph C.2.e. and substitute the following therefor:

No later than May 31 of 2005,2006 and 2007, in addition to the DERCs retired

( Prinw.l on Rccydcd Pupcr)

79 Elm SIre.:l • lIunfon.l. CT 06100·5127

An Eq,,,,1 Opflllrwnit.v £"'p!o.vtr
City of Norwich

Department of Public Utilities

2 Trading Agreement and Order

No. 8119A Modification No. I

pursuant to paragraph C.2.b. of this Trading Agreement and Order, Norwich shall

calculate and permanently retire DERCs used in the preceding non-ozone season

as follows:

Actual DERCs (tons) used = [Actual fuel use in MMBtu from October I through

April 30 x (allowable emission rate in IbsflvlMBtu

- (0.95 x 0.15IblMMBtu»J + 2000 Ibs/ton

S. Delete paragraph C.6. and substitute me following therefor:

(a) Annual DERC Report. No later than March 1 of every year after issuance of

this Trading Agreement and Order, Norwich shall submit in writing to !.he

Commissioner, a record of each sale or other transfer of DERCs for the

previous calendar year. Norwich shall also include actual NOx emissions from

the peaking unit and the amount of all DERCs used (including serial numbers

(if assigned) and DERCs purchased from other facilities). These repons shall

be on forms prescribed by the Commissioner and shall be in monthly

increments, and by ozone and non ozone seasons. In addition, Norwich shall

provide to the Commissioner an annual report documenting the progress and

results of the environmentally-beneficial program referenced in paragraph A.8.

of this Trading Agreement and Order as well as expenditures to date.

(b) Starting on October 1, 2004: No later than July 30 of every year after issuance

of this Trading Agreement and Order, Norwich shall submit in writing to the

Commissioner the non-ozone season fuel consumption and amount of all

DERCs used {including serial numbers (if assigned) and approved DERCs

purchased from other facilities) for the peaking unit during the October through

April time period in the previous calendar year. These reports shall be on a

form prescribed by the Commissioner.

6. DeIe[e paragraph C.7. and substitute the following therefor:

Allowance Use. Pursuant to Section 22a-174-22(d)(3) of the Regulations,

Norwich may use NOx allowances, until May 1,2007, for the peaking unit

pursuant to Section 22a-174-22(j) of the Regulations to achieve all or a portion of

the reductions required by Section 22a-174-22 of the Regulations. Any allowance

used for compliance with Section 22a-174-22(e) of the Regulations shall be

subject to all restrictions and/or requirements applicable to DERCs contained in

this Trailing Agreement and Order;

a. In order for Norwich (0 use NOx allowances, Norwich shall create a

general account or use an existing compliance account or overdraft
City of Norwich

Department of Public Utilities

3 Trading Agreement and Order

No. 8119A Modification No.1

account in EPA's NOx Allowance Tracking System ("NATS"); and

b. Each allowance used for compliance with Section 22a-174-22 of the

Regulations shall be equivalent to one discrete emission reduction credit.

Allowances shall be considered used for compliance with Se!=tion 22a·

174-22 of the Regulations when they are transferred from the facility's

NOx general account in the NATS or the facility's NOx compliance

account in the NATS to the cr State NOx Retirement Account (Account

ID CTOOOOOOO300 in the NATS).

7. Delete paragraph e.s. and substitute the following therefor:

DERC Shortfall. At a minimum, DERCs required shall be adjusted upwards by

100% if DERCs are not in Norwich's possession for use prior to the first day of

each month or applicable season. However, nothing in this Trading Agreement

and Order shall affect the Commissioner's authority to institute any proceeding or

take any other action to require additional upward adjustment, based on the gravity

of any alleged noncompliance or violation of law. Norwich shall permanently

retire the quantity ofDERCs equivalent to the excess emissions plus a 100%

premium within sixty (60) days of Norwich's discovery of the DERC shortfall.

Norwich shall certify and report any such DERC retirement to the Commissioner

in accordance with paragraph C.30. of this Trading Agreement and Order.

8. Delete paragraph C.lO. and substitute the following therefor:

FLER Exceedance. Noncompliance with an established FLER shall subject

Norwich to make restitution by matching the quantity of emissions ("true up")

caused by the exceedance plus a 100% premium. The true up in tons of DERCs

shall be equal to the FLER exceedance in IbsIM:MBtu, multiplied by the wtal heat

input during the period of noncompliance divided by 2000 lbs/ton. If the period of

noncompliance is not known, the time period from the completion of the

last/previous Commissioner witnessed emission test through the date the FLER

compliance is achieved as approved by the Commissioner shall be used. However,

nothing in this Trading Agreement and Order shall affect the Commissioner's

authority to institute any proceeding or take any other action to require additional

upward adjustment, based on the gravity of any alleged noncompliance or violation

of law. Norwich shall permanently retire DERCs calculated in accordance with the

above plus a 100% premium within sixty (60) days of Norwich's discovery of the

FLER exceedance. Norwich shall report any FLER exceedance to the

Commissioner in accordance with paragraph C.30. of this Trading Agreement and

Order.

9. Delete paragraph C.l3. and substitute the following therefor:
City of Norwich

Department of Public Utilities

4 Trading Agreement and Order

No. 8119A Modification No. I

Extension. No later than May 1,2007, with respect to the peaking unit, Norwich

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

22(d)(2)(A) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the Commissioner

will grant a written extension of this Trading Agreement and Order.

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

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

a report in writing to the Commissioner, as directed in paragraph C.3l. of this

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

Section 22a·174-22 of the Regulations with respectl.O the peaking unit on and after

May I, 2007.

11. Delete paragraph C.l? and substitute the following therefor:

Definitions. As used in this Trading Agreement and Order, "Approved DERCs"

are those for which the Commissioner has provided written authorization for use

in compliance with Section 22a-174-22 of the Regulations; "Commissioner"

means the Commissioner or a representative of the Commissioner; "Non-ozone

season" means the period from October 1 through April 30 in any given calendar

year; "Ozone season" means the period May 1 through September 30 in any given

calendar year.

12. Delete paragraph C.IS. and substitute the following therefor:

Dates. The date of "issuance" of this 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. The date ofsubmission to the Commissioner of

any document required by this Trading Agreement and Order shall be the date

such document is received by the Commissioner. The date of any notice by the

Commissioner under this Trad.ing Agreement and Order, including but not

limited to notice of approval or disapproval of any document or other action, 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

calendar day. Any document or action which is required by this 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 by the next day which is not a Saturday, Sunday or Connecticut or

federal holiday.

13. Delete the word "individual" and substitute therefor the word "Section" in
City of Norwich

Department of Public Utilities

paragraph C.30.

5 Trading Agreement and Order

No. 8119A Modification No. I

14. Delete the name "Me. Michael lafleur" in paragraph C.31.

All other terms and conditions of Trading Agreement and Order no. 8119A issl:led by the

Commissioner acting under Chapter 446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 of the Connecticut General Statutes shall remain in effect.

Norwich hereby consents to the entry of this modification to the Trading Agreement and Order

without further notice.

Signature:

Type Name:

Type Title:

Date:

Richard E. DesRoches

General Manaier

Mars!!.....9 •.-=-20",0",5~. _

Issued as a modification of an Order of the Commissioner of Environmental Protection.

f

hkt0&~ Gina McCarthy

Commissioner

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No. 7002 2030 0006 5643 006:3

Date