### SIP DESCRIPTION

- City ofNonvich DepartmentofPublic Utilities-Trading Agreement and Order No. 8119A Modification 1 I. 

### SIP

- DESCRIPTION OFDERC CREATION ANDIOR USE SIP SUMMARYTABLE Tradint! Aoreement and Order No. 8119A Modification 1 CityofNorwich Department ofPublic 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 ofthe Regulations of Connecticut State Agencies. Nonattainment Area Classification Serious Annual DERCs needed Estimated 5 ozone and I non-ozone. ComDlianceTime Period 

### Until Aori130. 2007. Max. Emission Rate: full load emission rate (FLER) Use. (SeeTable Ibelow):

Table t NOx Emission Rates and Allowable Limits 

### Unit Fuel Maximum 

### StackTest 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 OrderModification supersedes Trading Agreement and 

### OrderNo. 8119A issued on April 29. 2003. b. Calculations oCcredits used shall be as specified in Trading Agreement and Order No. 

### 8119A.

c. CityofNorwich Department ofPublic Utilities shall acquire and permanently retire seven ozone season DERCs for every actual ton ofexcess 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 OFNORWICH DEPARTMENT OF PUBUC UTIT..ITIES TRADING AGREEMENT AND ORDER NO. 8119A MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICATION 

### In the matterofaTrading Agreement and Orderbetween the CommissionerofEnvironmental Protection ("Commissioner") and City ofNorwich Department ofPublic Utilities ("Norwich"). 

### WHEREAS, the CommissionerandNorwich, having agreedto the terms andconditions set forth in Trading Agreement and OrderNo. 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 (herefotMay 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 ofSection 22a-174-22 ofthe 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 ofDERCs or allowances required for such non-ozone season needed (0 comply with Section 22a-174-22(e)(3) ofthe 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 of2005,2006 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.vtrCity ofNorwich Department ofPublic Utilities 2 Trading Agreement and Order No. 8119A Modification No. I pursuant to paragraph C.2.b. ofthis 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. Deleteparagraph C.6. and substitute me following therefor: (a) Annual DERC Report. No later than March 1 ofevery year afterissuance of this Trading Agreement and Order, Norwich shall submitin writing to !.he 

### Commissioner, arecord ofeach saleorothertransferofDERCs for the previous calendar year. Norwich shall also include actual NOx emissions from the peaking unit and the amount ofall DERCs used (including serial numbers (ifassigned) 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 Commissioneran annual report documenting the progress and results ofthe environmentally-beneficial program referenced in paragraph A.8. ofthis Trading Agreement and Order as well as expenditures to date. (b) Starting on October 1, 2004: No later than July 30 ofevery yearafter issuance ofthis Trading Agreement and Order, Norwich shall submit in writing to the Commissionerthe non-ozone season fuel consumption and amount ofall DERCs used {including serial numbers (ifassigned) and approved DERCs purchased from other facilities) for the peaking unit during the October through April time period in the previous calendaryear. 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) ofthe Regulations, Norwich may use NOx allowances, until May 1,2007, for the peaking unit pursuant to Section 22a-174-22(j) ofthe Regulations to achieve all or a portion of the reductions required by Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe Regulations shall be subject to all restrictions and/orrequirements applicable 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 oroverdraftCity ofNorwich Department ofPublic Utilities 

### 3 

### Trading Agreementand 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 ofthe Regulations shall 

### be equivalent to one discrete emission reduction credit. 

### Allowances shall be 

### considered used for compliance with Se!=tion 22a· 174-22 ofthe Regulations when they are transferred from the facility's 

### NOx general accountin the NATS orthe facility's NOx compliance accountin the 

### NATS to the

## crState NOx RetirementAccount (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 inNorwich's possession for usepriorto 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 ofany alleged noncompliance or violation oflaw. Norwich shall permanently retire the quantity ofDERCs equivalentto the excess emissions plus a 100% premium within sixty (60) days ofNorwich's discovery ofthe DERC shortfall. Norwich shall certify and report any such DERC retirement to the Commissioner in accordance with paragraph C.30. ofthis 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 ofemissions ("true up") caused by the exceedance plus a 100% premium. The true up in tons ofDERCs shall be equal to the FLER exceedance in IbsIM:MBtu, multiplied by the wtal heat input during the period ofnoncompliance divided by 2000 lbs/ton. Ifthe period of noncompliance is not known, the time period from the completion ofthe last/previous Commissioner witnessed emission test through the date the FLER compliance is achieved as approved by the Commissionershall be used. However, nothing in this Trading Agreement and Ordershall affect the Commissioner's authority to institute anyproceeding ortake any other action to require additional upward adjustment, based on the gravity ofany alleged noncompliance or violation oflaw. Norwich shall permanently retire DERCs calculated in accordance with the above plus a 100% premium within sixty (60) days ofNorwich's discovery ofthe FLER exceedance. Norwich shall report anyFLER exceedance to the Commissionerin accordance with paragraph C.30. ofthis Trading Agreement and Order. 9. Delete paragraph C.l3. and substitute the following therefor:City ofNorwich Department ofPublic Utilities 4 Trading Agreement and Order No. 8119AModification No. I Extension. No laterthan May 1,2007, with respect to the peaking unit, Norwich shall comply with the requirements ofSections 22a-174-22(d)(l) and 22a-174- 22(d)(2)(A) ofthe Regulations. There is no assurance that after full program review ofthis and otherTrading Agreements and Orders that the Commissioner will grant a written extension ofthis Trading Agreement and Order. 10. Delete paragraph C.14. and substitute the following therefor: Future Compliance Report. On orbefore September 1, 2006, Norwich shall submit areport in writing to the Commissioner, as directed in paragraph C.3l. ofthis Trading Agreement and Order, indicating how the facility shall comply with Section 22a·174-22 ofthe 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 Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissionerorarepresentative ofthe 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" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whichever is earlier. The date ofsubmission to the Commissionerof any 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 Commissionerunder this Trad.ing Agreement and Order, including but not limited to notice ofapproval or disapproval ofany document orotheraction, 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 calendar day. Any document or action which is required by this Trading Agreement and Orderto be submitted orperformed 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 ofNorwich 

### Department ofPublic 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 otherterms and conditions ofTrading Agreementand Orderno. 8119A issl:led 

### by the Commissioner acting under Chapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a

### 177 

### ofthe ConnecticutGeneral Statutes shall remain in effect. Norwich hereby consents to 

### the entry ofthis 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 amodification ofan Orderofthe CommissionerofEnvironmental Protection.

# hkt0&~ f Gina McCarthy Commissioner



### MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED Certified DocumentNo. 7002 2030 0006 5643 006:3 

### Date