# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STA IE OF CONNECTICUT AND MONTVILLE POWER liC 

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# I ITRADING AGREEMENT AND jBy 

# _d ORDER NO. 8216A MODIFICATION NO. I
TRADING AGREEMENT AND ORDER MODIFICATION 

### In the manerofaTrading Agreement and Order between the Commissioner ofEnvironmental Prote<:tion ("Commissioner") and Montville PowerliC ("MPliC"). 

### WHEREAS. the Commissioner and MPLLC. having agreed to the terms and conditions set forth in Trading Agreement and OrderNo. 82I6A issued on April 30, 2003, do now, by mutual 

### agreement, modify saidTrading Agreement and Order as follows: . 1. Delete the date September 30, 2004, and substitute therefor May 1,2007, in paragraphs A.9., CI., C.2., C.3.a., C.3.a. footnote 3, C.3.b., C3.c., C3.d., C.3.e., C3.f., and C.6. 

# o 2. Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a-174-22(j) ofthe Regulations, MPliC intends both to 

### acquire and generate approvedDERCs until May 1, 2007 for boiler 5 at the facility. Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissionerhas provided written authority for use in compliance with Section 22a-174·22 ofthe Regulations. 3. Delete paragraph B.1. and substitute the following therefor: Comply with Se<:tion 22a-174-22(d)(l) ofthe Regulations through use ofBudget Discrete Emission Reduction Credit ("BDERC") and DERC trading.
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### Delete paragraph C.6.b. and substitute the following therefor: During the non-ozone season: 

### During the period from October 1through April 30, inclusive, each year until May 1,2007, the boiler shall, in addition to meeting the**24~hour** 

### emission limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet anon-ozone season emission limit of0.15 IblMMlltu. Prior to October I, 2003, October I, 2004', October 1,2005, and October I, 2006, MPliC shall estimate and acquire the 

### amount ofnon-ozone season DERCs or allowances needed to comply with (Prinled 011 Recycled Piper) 79 Elm Slreel • HJ.utord. CT 06106·5127 hup:Jldcp.SIII<:.<:1.115 All Equal Opponullity EmploYefSIP DESCRIPTION

- Montville Power LLC Trading Agreement and Order No. 8216A Modification 1 J. SIP

- DESCRIPTIO OF DERC CREATION AND/OR USE SIP SUMMARY TABLE Trading Agreement and Order No. 8216A Montville Power LLC 74 Lathrop Road Montville

## cr06382 Identifier 

# IClient 7741 Town # i07 Premise # 

# ISequence # 

### 1 Contact Ms. Cynthia Karlic Tel: (860) 343-6962 Fax (860) 343-6969 RelZional ManalZer Pollutant and Regulatory Standard: NOx 

# I Section 22a·174·22 ofthe Regulations of Connecticut State AlZencies. Nonattainment Area Classification Severe Annual DERCs needed Estimated 5 non-ozone Annual DERCs 2enerated Estimated2ozone (BDERCs) Compliance Time Period Until April 30, 2007. Max. Emission Rate: CEM and full load emissionrate (FLER) for Generation and Use. (SeeTable I below):
Table 1 NOx Emission Rates and Allowable Limits Unit Fuel Ma.ximum Stack Test FLER Allowable Date of Next 

### PIR number Capacity (ppmvd) IbslMMBtu Rate Stack Stack MMBtulhr IbsIMMBtu Test Test Due Boiler5 #6 oil 995 CEM CEM 0.25 NA NA R-107-0017 Nat. gas 

### " " " 0.20 " 

### " Non-ozonec 

### " " " 0.15 " 

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II. SPECIAL REQUlREMENTS

a. This Trading Agreement and OrderModification supersedes Trading Agreement and OrderNo. 8216A issued on April 3D, 2003. b. Calculations ofcredits used or generated shall be as specified in Trading Agreement and OrderNo. 8216A.

c. Starting on October 1.2003 and until April 30. 2007 during the non·ozone season: For purposes ofgenerating DERCs from the boiler at the facility. Montville Power LLC shall use 0.15 IbsIMMBtu ofheat input when operating on No.6 fuel oil. and/or natural gas as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (tons) generated by the boiler shall be retired by the facility and pennanently removed from all calculations on a non-ozone season basis to assure a benefit to the environment.

### Montville Power LLC 2 

### Trading Agreement and Order No. 821M Modification No. I



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6. Section 22a-174-22(e)(3) ofthe Regulations as follows: EstimatedDERCs (tons) 

### = [Estimated fuel use in MMBtu from October I through 

### April 30 x Oower ofthe estimated seasonal average NOx emission rate or the propoItioned 24-hour allowable emission limit in IblMMBtu during October I through April 30

- (0.95 x 0.151blMMBtu))].;- 2000 pounds/ton. No later than May 31 of2004, 2005, 2006, and 2007, in addition to the DERCs retired pursuant to paragraph C.6.a. ofthis Trading Agreement and Order, MPLLC shall calculate and permanently retire DERCs used in the preceding non

### ozone season as follows: Actual DERCs (tons) 

### = [Actual fuel use in MMBtu from October I through April 

### 30 x (lower ofthe actual seasonal average NOx emission rate or the proportioned 24-hourallowable emission limit in IblMMBtu during October I through April 30

- (0.95 x 0.15 IblMMBtu))] .;- 2000 pounds/ton. Delete paragraph C.IO. and substitute the following therefor: 

### Annual Emission Statementand Non-Ozone Season Emission Statement. No later than March I for the previous calendar year and July 30 (for the October through 

### April time period only starting in 2003) ofevery year after issuance ofthis Trading Agreement and Order, MPLLC shall provide to the Commissioner, a 

### record ofeach sale orother transfer, and use ofany and all 

### ofthe DERCs approved within and subsequentto issuance ofthis Trading Agreementand Order 'until all such DERCs have been used or are no longerin MPIl..C's possession. tv1PllC shall also include actual NOx emissions from the boiler and the amount ofa\l DERCs used (including serial numbers (ifassigned) and approvedDERCs 

### generated and/or purchased from otherfacilities), generated and/or approved for the previous calendar year and October through April time period. These·repons 

### shall be 

### on afonn prescribed by the Commissionerand shall be 

### in**mo~thly** 

### increments, and by ozone and non-ozone seasons. ' Delete paragraph C.12. and substitute the following therefor: DERC Shortfall. At aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in MPLLC's possession for use prior to the first day of 

### each month or applicable season. However, nothing in this Trading Agreement and Ordershall 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. MPIl..C shall permanently retire the quantity ofemissions caused by the exceedance plus a

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### Trading Agreement and Order No. 8216A Modification No. I 100% premium within sixty (60) days ofMPLLC's discovery ofthe DERC shortfall. MPLLC shall certify and report any such DERC retirement to the 

### Commissionerin accordance with paragraph C.31 ofthis Trading Agreement and Order. 7. Delete paragraph C.14. and substitute the following therefor: Extension. No later than May I, 2007, with respect to the boiler, MPLLC 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 afterfull program 

### review ofthis and otherTrading Agreements and**Orde~** 

### that the Commissioner will grant awrinen extension ofthis Trading Agreement and Order. 8. Delete paragraph C.IS. and substitute the following therefor: Future Compliance Report. On orbefore September I, 2006, MPLLC shall submit 

### areport in writing to the Commissioner, as directed in paragraph C.32. ofthis Trading Agreement and Order, indicating how the facility shall comply with 

### section 22a-174-22 ofthe Regulations with respect to 

### the boileron and afterMay 1,2007.

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# V All other tenns andconditions ofTrading Agreementand Order no. 8216A issued by the Commissioner acting under Chapter

### 446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a

### 177 ofthe ConnecticutGeneral Statutes shall remain in effect.Montville PowerLLC 4 

### Trading Agreement and Order No. 8216A Modification No. I 

### MPILC hereby consents to the entry ofthis modification to the Trading Agreement and Order without funher notice. . 

### Montville Power

### lie Signature: Type Name: Type Title: 

### Date:

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Entered as amodification ofan Order ofthe CommissionerofEny.ir mental Protection 

# //..,i numbered 8216A this**_-<J&~** __ day of**~~~~L,**

MAILED CERTIFIED MAlL,

RETURN RECEIPT REQUESTED Certified Document No.