### 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 ofthe Regulations of Connecticut State Agencies. NonattainmcntArea Classification Serious Annual DERCs needed Estimated 5 ozone and 1non·ozone. ComplianceTime Period Until April 30, 2007. Max. Emission Rate: full load emission rate (FLER) Use. (See Table Ibelow):
Table 1 NOx Emission Rates and Allowable Limits Unit Fuel Maximum StackTest 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 OrderNo. 8220A issued on March 27, 2003. b. Calculations ofcredits used shall be as specified in Trading Agreement and OrderNo. 8220A.


### c. Bristol-Meyers Squibb Company shall acquire and permanently retire seven ozone season DERCs for every actual ton ofexcess NOx emitted from the peaking units during the previous ozone season based upon the actual emissions for each day that Connecticut one hourozone 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 ofaTrading Agreement and Orderbetween the CommissionerofEnvironmemal 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 OrderNo. 8220A signed by 

### the Commissioneron March 27, 2003, do now, by 

### mutual agreement, modify saidTrading Agreement and Order as follows: 

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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 ofthis 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. StackTest 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._-.

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## If.2 oil 12.2 

### 8 11/23/04 11123/09

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# 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

""" E<{uul 01"""/1011;/'**E""""'~I**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 ofpeaking unit# 2 on November 23, 2004 

### resulted in an exceedance ofthe A...ER listed in Table 1 ofTrading Agreement and Order 8220A, 

### expressedin lbs!M:::rv1Btu. 5. Add paragraph A.l3. as follows: In a letter dated April 1,2005, BMS notified the Department ofEnvironmental Protection ofthe fl..ER exceedance identified in paragraph A.12. As aresult ofthe FLER exceedance, BMS has 'retired 0.42 ton (0.21 ton ofexcess 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 ofeach month BMS shall have in its possession sufficient approved DERCs forthe current day for the peaking units based on the following calculations; Before the first day ofeach month, BMS shall estimate DERCs required for such

_month for the peaking units as follows:



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# ". 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 ofeach 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 ofthis Trading 

### Agreement and Order. b. FLER 

### = full load emission rate in gmlbhplhr as shown in Table 1 ofthis 

### Trading**Agreern~nt** 

### and Order. c. Discount (0.95):;; 5% design margin applied to the allowable 

### limitrate. d. EFF.:;; Engine efficiency as calculated during most recent emission lest ii) 

### During the ozone season onlv: No laterthan December**31~** 

### each year. BMS shall acquire and permanently retire seven ozone season DERCs for every actual ton ofexcess 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 ofexcess 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 ofexcess 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 ofDERCs to be**perThan~~tly** retired. This requirement is in addition to the BMS's requirement to estimate**d:.'tess.~missions** and subsequent pennanent retirement ofa sufficient number of.approved DERCs in accordance with paragraph C.2.a.(i) ofthis 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 ofSeclion 22a-174-22(d)(1) ofthe Regulations. There is no assurance that after full program review ofthis and otherTradingAgreements and Orders that the Commissioner will grant a written extension ofthis Trading Agreement and Order.
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### 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 ofdaily fuel use and fuel type; excess NOx emissions; the numberofDERCs in its 

### possession, purchased and used (by 

### serial number

### ifassigned) each month in accordance with the appropriate emission rates and limits in this Trading Agreement and Order, the number ofDERCs used during the 

### ozone season and 

### non-DIone season (the remainder ofthe year); during the ozone season, the ozone classification as forecasted by 

### the Commissioneron the previous day; as well as documentation attesting to 

### theiact that approvedDERCs used during the ozone season were generated during the ozone season. Generatorcertification of this fact shall be sufficient. BMS shall maintain and submit such records to the Commissionerin accordance with Section 22a-174-22 ofthe Regulations. 10. Delete paragraph C.6. and substitute the following therefor: Annual DERC Report. No laterthan March 1 ofevery y'ear after issuance ofthis Trading Agreement and Order, BMS shall submit in writing to the Commissioner, a record ofeach sale orothertransferofDERCs for the previous calendaryear. BMS shall also include actual NOx emissions from the peaking units and the amount ofall DERCs used (including serial numbers (ifassigned) and DERCs purchased from other facilities). These repom shall 

### be on forms prescribedby 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) ofthe Regulations, BMS may use NOx allowances, until May 1, 2007, forthe peaking units pursuantto Section 22a

### I74-22U) ofthe Regulations to achieve all Ot aportion ofthe reductions required by .Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section**22~-174-22(e)** ofthe 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

# rorBMS to use NOx allowances, BMS shall create a general account oruse an existing compliance account oroverdraft 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 di'screte emission reduction credit. Allowances shall 

### be considered used for compliance with Section 22a174-22 ofthe Regulations when they are transferred from**t~e** facility's NOx general account in the NATS orthe 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 priorto the first day

### ofeach 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 ofany alleged 

### noncompliance or violation oflaw. BMS shall permanently retire the quantity of DERCs equivalentto the excess emissions plus a 100% premium within sixty (60) days ofBMS' discovery ofthe DERC shortfall. BMS shall certify and report any such DERC retirement to the Commissionerin accordance with paragraph C.29. ofthis 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 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 gmlbhplhr, multiplied by the total heat input in M:MBtu during the period ofnoncompliance, multiplied by the engine efficiency as shown in Table I, multiplied by hp-hr/0.002544MMBtu. multiplied by Ibs/454 grams, divided by 2000 Ibs/ton. 

### Ifthe period ofnoncompliance 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 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 ofany 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 ofBMS' discovery ofthe FLER exceedance. Bf\1S shall**~p'Ot1** any FLER exceedance to the Commissioner in**ac~ordance** with paragrapl't(;:29. ofthis Trading Agreement and Order.

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# - 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 Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; "Non-ozone season" means the period from October 1 through April 30 in any given calendaryear;. "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" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. 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 Commissioner under this Trading Agreement and Order, including but not limited to notice ofapproval or disapproval ofany document orother action, shall be 

### the date such notice is deposited in the 

### U.S. mail oris personallydelivered, whicheveris earlier. Except as otherwise specifiedin this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendarday. Any document oraction which is required by this Trading Agreement and Orderto be 

### submitted orpeIformed by adate which falls on a Saturday. Sunday or a Connecticutorfederal holiday shall be 

### submitted or performed by the next day which is not a Saturday. Sunday or Connecticutorfederal holiday. 16. Delete the word "individual" and substitute therefore the word "Unit" in paragraph C.29
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..17. Delete the name 

### "Mr. Michael LaFleur" in paragraph C.30. All otherterms and conditions ofTrading Agreement and Orderno. 8220A issued by the Commissioner acting under Chapter446c, Sections 22a-6, 22a-171. 22a-174, 22a-176, and 22a177 ofthe Connecticut General Statutes shall remain in effect.

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### Bristol-Myers Squibb Company 

### 7 TradingAgreement and Order 

### No. 8220A Modification No.1 BMS hereby consents to the entry ofthis modification to the Trading Agreement and Order 

### without further notice.
Signature: Type Name: TypeTitle: Date:

# Bri~~ Ber;].ard E I 

### Blessine-el' Sr. Director Facilities**AdmL.-llst~ation**

April 26! 2005


### Issued as amodification ofan Orderofthe CommissionerofEnvironmental Protection. 

# o Dale 

### Commissioner


### MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED Cel1ifiedDocument No. ]002 2030 0007 9636 1165

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