SIP DESCRIPTION Bristol-Mevers Squibb Company Tradine: Ae:reement and Order

No. 8220A Modification 1

I. SIP - DESCRIPTION OF DERC CREATION AND/OR USE

SIP SUMMARY TABLE

Tradine: A{!reement and Order No. 8220A Modification 1

Bristol-Meyers Squibb Company 5 Research Parkway Wallingford CT 06492

Identifier I Client.ll Town # 189 Premise # 197 I Sequence # J

Contact Mr. Carl Noonan Tel: (203) 677-6242 Fax (203) 677-6252

Associate Director EHS

Pollutant and Regulatory Standard: NOx I Section 22a-174·22 of the Regulations of

Connecticut State Agencies.

Nonattainmcnt Area Classification Serious

Annual DERCs needed Estimated 5 ozone and 1non·ozone.

Compliance Time Period Until April 30, 2007.

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

Table 1

NOx Emission Rates and Allowable Limits

Unit Fuel Maximum Stack Test FLER Allowable Date of Next

P/R number Capacity (ppmvd) Ibs/MMBtu Rate Stack Stack

MMBtulhr IbslMMBtu Test Test Due

Waukesha #2 oil 9.8 1640.7 3.60 2.56 11/23/04 11/23/09

Diesel Gen·}

Waukesha #2 oil 9.8 1499.0 3.12 2.56 11/23/04 11/23/09

Diesel Gen-2

II. SPECIAL REQUIREMENTS

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

Order No. 8220A issued on March 27, 2003.

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

8220A.

c. Bristol-Meyers Squibb Company shall acquire and permanently retire seven ozone

season DERCs for every actual ton of excess NOx emitted from the peaking units during

the previous ozone season based upon the actual emissions for each day that Connecticut

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

"very unhealthful".

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STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT

AND

BRISTOL-MYERS SQUIBB COMPANY

TRADING AGREEMENT AND

ORDER NO. 8220A

MODIFICAnON NO. I

TRADING AGREEMENT AND ORDER MODIFICATION

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

Protection ("Commissioner") and Bristol-Myers Squibb Company ("BMS").

WHEREAS. the Commissioner and BMS, having agreed to the terms and conditions set fonh

in Trading Agreement and Order No. 8220A signed by the Commissioner on March 27, 2003, do

now, by mutual agreement, modify said Trading Agreement and Order as follows:

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I.

2.

Delete paragraph A.4. and substitute the following therefor:

Official U.S. Environmental Protection Agency ("EPA") Reference Method 7£ stack

testing perfonned on November 23, 2004 resulted in NOx emission rates set forth in

Table 1 of this Trading Agreement and Order.

Delete Table 1 and substitute the following therefor:

Table 1

BMS - NOx EMISSION RATES AND ALLOWABLE LIMITS

Peaking

Units

Fuel Efr. Stack Test FLER Allowable Test

(gm/bhplhr) (gm/bhplhr) Rate Date

starting in (gm/bhplhr)

2/05

Next

Stack

Test

Due

1325 bhp

-Waukesha

Diesel

Generator

#1

Other' ·..324._-. __ If.2

oil

12.2 8 11/23/04 11123/09

i .

U

1325 bhp

Waukesha

Diesel

Generator

#2

Other .327

oil

IL3 11.8 8 11123104 11123/09

f Prinlru lin Rr"~d,,,J P~p<r I

7~ Elm SIr".:t • H~rtf..rd. CT t/tlIOf>· '127

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Bristol-Myers Squibb Company 2 Trading Agreement and Order No. 8210A

Modification NO.1

3. Delete paragraph A.S. and substitute the following therefor:

Reserved.

4. Add paragraph A.12. as follows:

Emissions testing of peaking unit # 2 on November 23, 2004 resulted in an

exceedance of the A...ER listed in Table 1 of Trading Agreement and Order 8220A,

expressed in lbs!M:::rv1Btu.

5. Add paragraph A.l3. as follows:

In a letter dated April 1,2005, BMS notified the Department of Environmental

Protection of the fl..ER exceedance identified in paragraph A.12. As a result of the

FLER exceedance, BMS has 'retired 0.42 ton (0.21 ton of excess emissions x 2) of

NOx DERCs in order to "true up" excess emissions from January 2000 (last

emission test) to February 2005 pursuant to paragraph C.9. afTracting Agreement

and Order 8220A.

6. Delete the date April 30.2007, and substitute therefor May 1, 2007, in paragraph C.1.

7. Delete paragraph C.2.a. and substitute the following therefor:

Until May I, 2007, before the first day of each month BMS shall have in its

possession sufficient approved DERCs for the current day for the peaking units based

on the following calculations;

Before the first day of each month, BMS shall estimate DERCs required for such

_month for the peaking units as follows:

-- . (i) At.all times: . . ....,::.....".

Estimated DERC~ (in tons) use::::: [estimated gal/month x heat input in MMBtulgal

x (FLER - (0.95 x NOx allowable rate)) x EFF.

x HP-hr/0.002544 MMBtu x Ibsl454gJ 2000

pounds/ton

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Bristol-Myers Squibb Company 3 Trading Agreement and Order

No. 8220A Modification No.1

o

No later than the twentieth day of each month, BMS shall calculate and

permanently retire DERCs used in the preceding calendar month, as follows:

Actual DERCs (in Ions) = [aclual gal/month x heal input in MMBlU/gaJ x

(FLER - (0.95 x NOx allowable rate» x EFF. x HPhr/0.002544 MMBtu x Ibsl454g) .;. 2000 pounds/Ion

Where:

a. NOx. allowable rate:;; in gmlbhplhr as shown in Table 1 of this Trading

Agreement and Order.

b. FLER = full load emission rate in gmlbhplhr as shown in Table 1 of this

Trading Agreern~nt and Order.

c. Discount (0.95):;; 5% design margin applied to the allowable limit rate.

d. EFF.:;; Engine efficiency as calculated during most recent emission lest

ii) During the ozone season onlv:

No later than December 31~ each year. BMS shall acquire and permanently retire

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

peaking units during the previous ozone season based upon the actual emissions

for each day that Connecticut one hour ozone levels were forecasted to be

"moderate to unhealthful", "unhealthful", or "very unhealthful", until such time

that the EPA revokes the I-hour standard. Upon such revocation, BMS shall

calculate and pennanently retire seven ozone season DERCs for every actual ton

of excess NOx emitted from the peaking units during such ozone season based

upon the actual emissions for each day that Connecticut eight hour ozone levels

were forecasted to be "unhealthy for sensitive groups", "unhealthy", or "very

unhealthy". The total actual tons of excess NOx emitted from the peaking units

during forecasted ozone exceedance days shall be multiplied by seven and then

roun~e.d. to the next greater whole ton, to determine the number of DERCs to be

perThan~~tly retired. This requirement is in addition to the BMS's requirement to

estimate d:.'tess.~missionsand subsequent pennanent retirement of a sufficient

number of.approved DERCs in accordance with paragraph C.2.a.(i) of this

Trading Agreement and Order.

8. Delete paragraph C.3. and substitute the following the~for:

EXlension. No later than May 1, 2007, wilh respect to the peaking units, BMS shall

comply with the requirements of Seclion 22a-174-22(d)(1) 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. .
Bristol-Myers Squibb Company 4 Trading Agreement and Order

No. 8220A Modification No.1

9. Delete paragraph CA. and substitute the following therefor:

BMS shall make and keep records of daily fuel use and fuel type; excess NOx

emissions; the number of DERCs in its possession, purchased and used (by serial

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

limits in this Trading Agreement and Order, the number of DERCs used during the

ozone season and non-DIone season (the remainder of the year); during the ozone

season, the ozone classification as forecasted by the Commissioner on the previous

day; as well as documentation attesting to theiact that approved DERCs used during

the ozone season were generated during the ozone season. Generator certification of

this fact shall be sufficient. BMS shall maintain and submit such records to the

Commissioner in accordance with Section 22a-174-22 of the Regulations.

10. Delete paragraph C.6. and substitute the following therefor:

Annual DERC Report. No later than March 1 of every y'ear after issuance of this

Trading Agreement and Order, BMS shall submit in writing to the Commissioner, a

record of each sale or other transfer of DERCs for the previous calendar year. BMS

shall also include actual NOx emissions from the peaking units and the amount of all

DERCs used (including serial numbers (if assigned) and DERCs purchased from other

facilities). These repom shall be on forms prescribed by the Commissioner and shall

be in monthly increments, and by ozone and non ozone seasons.

11. Delete paragraph C.6. and substitute the following paragraph C.6.(2) therefor:

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

use NOx allowances, until May 1, 2007, for the peaking units pursuant to Section 22aI74-22U) of the Regulations to achieve all Ot a portion of the reductions required by

.Section 22a-174-22 of the Regulations. Any allowance used for compliance with

Section 22~-174-22(e) of the Regulations shall be subject to all restrictions and/or

requiremen.t.s ~pplicable to DERCs contained in this Trading Agreement and Order; . .......,.":-;~.

a. In order ror BMS to use NOx allowances, BMS shall create a general

account or use an existing compliance account or overdraft 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 di'screte emission reduction credit.

Allowances shall be considered used for compliance with Section 22a174-22 of the Regulations when they are transferred from t~e facility's

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

account in the NATS to the CT Slate NOx Retirement Accourtt ~Account

ID CTOOOOOOO300 in the NATS).

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Bristol-Myers Squibb Company 5 Trading Agreement and Order

No. 8220A Modification NO.1

13.

12. Delete parngraph C.7. and substitute the following therefor:

DERC Shortfall. At a minimum. DERCs required shall be adjusted upwards by 100%

ifDERCs are nOl in BMS' 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 (0 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. BMS shall permanently retire the quantity of

DERCs equivalent to the excess emissions plus a 100% premium within sixty (60) days

of BMS' discovery of the DERC shortfall. BMS shall certify and report any such

DERC retirement to the Commissioner in accordance with paragraph C.29. of this

Trading Agreement and Order.

Delete paragraph C.9. and substitute the following therefor:

FLER Exceedance. Noncompliance WIth an established FlER shall subject BMS to

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

exceedance plus a 100% premium. The true up in tons ofDERCs shall be equal to the

FlER exceedance in gmlbhplhr, multiplied by the total heat input in M:MBtu during the

period of noncompliance, multiplied by the engine efficiency as shown in Table I,

multiplied by hp-hr/0.002544 MMBtu. multiplied by Ibs/454 grams, divided by 2000

Ibs/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

authoriry to institute any proceeding or rake any other action to require additional

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

law. BMS shall pennanently retire DERCs calculated in accordance with the above plus

3: 100% premium within sixty (60) days of BMS' discovery of the FLER exceedance.

Bf\1S shall ~p'Ot1 any FLER exceedance to the Commissioner in ac~ordance with

paragrapl't (;:29. of this Trading Agreement and Order. . ' .

....:.., .....- 14. Delete paragrnph C.16: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 ye3!.

15. Delete paragmph C.17. and substitute the following rherefor: .

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Bristol-Myers Squibb Company 6 Trading Agreement and Order

No. 8220A Modification o. I

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 of submission 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

Trading 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 peIformed 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.

16. Delete the word "individual" and substitute therefore the word "Unit" in

paragraph C.29.

..17. Delete the name "Mr. Michael LaFleur" in paragraph C.30.

All other terms and conditions of Trading Agreement and Order no. 8220A issued 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.

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Bristol-Myers Squibb Company 7 Trading Agreement and Order

No. 8220A Modification No.1

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

without further notice.

Signature:

Type Name:

Type Title:

Date:

Bri~~

Ber;].ard EI Blessine-el'

Sr. Director Facilities AdmL.-llst~ation

April 26! 2005

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

o

Dale

Commissioner

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Cel1ified Document No. ]002 2030 0007 9636 1165

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