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# .. 7004 1160 0006 1516 2612 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matterof


### The State ofConnecticut and Sprague Paperboard, Inc. ) ) ) ) ) Trading Agreement and OrderNo. 8117B



## ( Whereas, the Commissioner ofEnvironmental Protection ("Commissioner") and Sprague Paperboard, Inc. ("Sprague") agree that it is in the public interest that they work cooperatively [0 improve the air quality within the State ofConnecticut and that the use ofdiscrete emission reduction credit ("DERC") trading [0 reduce nitrogen oxide ("NOx") emissions will achieve this resuh in atimely and cost-effective manner.
A. 

### At the request and with the agreement ofSprague, the Commissionerfinds the following:
I. This Trading Agreement and Order supersedes Trading Agreement and Order 8117A signed by the Commissioneron September29,2003.
2. Sprague is a corporation that on April 8. 1999, purchased from International Paper Company, and now owns and operates the manufacturing facility at 130 Inland Road, Versailles, Connecticut ("facility").
3. At the facility, Sprague operates fuel-burning equipment that consists ofaBudget Source Babcock and Wilcox natural gas and/or No.6 fuel oil fired 

### PA steam boiler ("PFI boiler") and a Non-budget Sou",e Babcock and Wilcox natural gas fired FM steam boiler ("FM boiler"), which are subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations").
4. Sprague monitors NOx emissions from the PFI boiler using a continuous emissions monitoring system ("CEM"), certified in accordance with 40 Code ofFederal Regulations ("CFR") Pan 75.
5. When burning natural gas orNo.6 fuel oil in the PFI boiler, Sprague exceeds the allowable NOx emissions limits specified in Section 22a-174-22 (e) ofthe Regulations.
6. Pursuant to Section 22a-174-22U) ofthe Regulations, during the non-ozone season, Sprague intends to acquire and use approved DERCs until May I, 2007 for the 

### PA boiler at (he facility. Pursuant to Section 22a-174-22(j) ofthe Regulations, during the ozone season, Sprague intends to acquire and use approved discrete emission reduction credits ("DERCs") and/or Budget discrete emission reduction credit ("BDERCs") until May 1,2007 for the PFI boiler at the facility in accordance with this Trading Agreement and Order.

I Pr;nt.:oJ <>n**1l:~'·r.:koJ** P:.per I 7'1 Elm Slr

...·t •**l\~rI(** ..tlJ. CT 1I61lJ6· 5117**.~** ••••••• I ••••••**,~,** ....... J·,,,,,I

..,_rSpr.gue Poperboard, Inc. 2 Trading Agreement ond Order No.8II7B
7. Official U.S. Environmental Protection Agency ("EPA") Method 7E emission tests 

### perfonned on the FM boiler showed that NOx emissions rntes were as follows:

Table 1 Sprague- FM and PFI Boiler NOx Emission Rates and Allowable Limits in pounds per million British thermal units ("lbsIl\1MBtu") Unit: DEP Fuel Heat Emission Generation AJlowable Date of Next

Permit! Input Ra'e FLER Limits Emission Emission Ree:istrlltion # Test TestDue FM: Boiler Nat. Gas 70 0.11 0.13 0.20 5/10101 5/10106 P·170-001 PA Boiler No.6 Oil 275 CEM 

### N/A 0.25 

### N/A N/A R·170-003 Nat. Gas 288 CEM 

### N/A 0.20 

### N/A N/A 

## •
'Or the proponioned allowable limit, pursuont to Section 22a-174-22(f)(2)(A) of. the Regulations when burning both natural gas and No.6 fuel oil**s~multaneously.** 8. Pursuant to Section 22a-174-22(j) ofthe Regulations, Sprague intends to generate approved DERCs from the FM boiler until May 1. 2007 using a full load emission rate ("FLER") ofO.13lbsIMMBtu as shown irtTable 1 ofthis Trading Agreement and Order.

. 9. When properly documented by Sprague, and approved by the Commissioner, the emission reductions from the FM boileridentified above, and as computed in accordance with the terms ofthis Trading Agreement and Order, will conform to the requirements ofSection 22a-174-22U)(3) ofthe Regulations. Specifically, the reductions will be:
Real because they will result in a reduction ofactual emissions released into the air, net ofany consequential increase in aClUal emission resulting from shifting demand. The emission reductions will be properly measured, recorded, and reported. Quantifiable because they are based on Department 

### wimessed emission testing as applied in an appropriate reliable and replicable protocol and periodic re-testing. Surplus because they arc not required by any Connecticut statute orregulation mandated by a current State Implementation Plan ("SIP"), and are not currently relied upon in any applicable attainment plan, any reasonable furtherprogress plan or milestone demonstration.
Pennanent because the 10w-NOx burners will 

### be in place and operating, and an appropriate tracking system is in place to monitor all data required to verify and quantify the creation ofDERCs.
Enforcenble because the DERCs are approved by the Commissionerretrospectively after the submission by Sprague ofa report that documents their creation. 

# if' {,V.



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### Sprague Paperboard, Inc. 3 Trnding Agreement 

### and OrderNo. 8117B



# ( 10. The Commissioner, pursuant to Section 22a-174-220) ofthe Regulations, approved the NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers assigned by 

### the Commissionerto these previously approved DERCs are provided in Table 2 ofthis Trading Agreement and Order. Unused 

### DERCs are subject to the vintage restrictions ofthis Trading Agreement and Order. Dates after which the unused DERCs 

### will no longer be 

### eligible for use 

### as a result of the vintage restrictions are provided in Table 2 ofthis Trading Agreement and Order in the expiration date column.


### Table 2 Sprague Previously Purchased and Generated A IDroved 

### DERCs (to the extent notalread 

### used) Year Ozone Season NOx DERC 

### Ozone Non-ozone season NOx Non- Expiration



### of serial numbers Season DERC serial numbers ozone Date Gen. 

### DERCs



### . season 

### DERCs 1999 SIN not assi.2.ned 

### 36 SIN not assitmed

. 15 

### 12131/04 1999 SIN not asSi2ned 

### 103 SINnot assimed 72 

### 12131/04 1999 None 

### 0 SIN not**assi~** 

### 125 12131/04 1999 SIN not assigned 5 SINnotassimed 4 

### 12131/04 2000 Cf00l8117fDC)NOxoz(1-(0) 40 

### Cf00l8117(DC)NOxnoz(1-60) 60 12131105
B.t. The Commissioner, in accordance with the provisions ofthis Trading Agreement and 

### Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows Sprague and approved sources within Connecticut to use NOx DERCs generated by Sprague which have been approved by the Commissioner. These DERCs may 

### be used for the purposes ofcompliance under Section 22a-174-220) ofthe Regulations, to achieve a portion ofthe nitrogen oxide emission reductions required.
B.2. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-220) ofthe Regulations, hereby allows Sprague to:



### a. Comply with Section 22a-174-22(d) ofthe Regulations through use ofDERCs, BDERCs and/or allowance trading;
b. Use Olone'season BDERCs in accordance with this Trading Agreement and Order; 

### and

c. Upon sufficientdocumentation as prescribed in this Trading Agreement and Order, generate additional DERCs. Upon issuance ofan addendum to this Trading Agreement and Orderthe Commissionermay approve the generation ofadditional 

### DERCs by Sprague retrospectively. Approved DERCs generatedby Sprague may be held by Sprague ortransferred to otherpersons in accordance with this Trading Agreement and Order.
C. With the agreement ofSprague, the Commissioner, acting under Sections 22a-6, 22a171, 22a-174, 22a-176.•1Od 22a-177 ofthe Connecticut General Stututes, hereby orders Spmgue as follows:Sprague Paperboard, Inc. 4 Trading Agreement and OrderNo. 8117B

1. Upon issuance ofthis Trading Agreement and Order, Sprague may generate approved DERCs from the FM boiler as allowed under this Trading Agreement and Order until May I, 2007.
2. Upon issuance ofthis Trading Agreement and Orderuntil Sprague achieves pennanentcompliance with the emission standard in Section 22a-174-22(e) ofthe Regulations orby May 1,2007 for the 

### PA boiler and PM boiler, whicheveroccurs earlier, Sprague shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading in accordance" with the following:

a. Sprague shall use approved DERCs as required under this Trading Agreement and Order;
b. Sprague shall have in its possession sufficient appr5'ved DERCs, BDERCs, or allowances to meet applicable NOx emission limits as allowed under this Trading Agreement and Order;

c. Sprague shall comply during the operation ofthe FM boiler with the FLER shown in Table 1 in accordance with this Trading Agreement and Order; and
d. Sprague shall not burn No.6 fuel oil in the PM boiler.
3. FM BoilerDERC Generation. Until May 1,2007, when burning natural gas in the FM boiler at the facility, Sprague shall calculate the amount ofDERCs generated as follows:
DERCs (tons) Generated 

### = {[(PM boilernatural gas heat input in MMBtu) 

### x (allowable limit in IbsftvIMBtu

- A...ER limit in lbslMMBtu)] .,. 

### 2000 Ibs/ton) 

### x (0.90) 

### x (0.90)
Where: 

## r-,. V·

•

• A...ER for the FM boiler;;;; generation R..ER shown in Table 1. Allowable limit

- allowable limit rate for natural gas shown in Table 1 of this Trading Agreement and Order.

• Discount 

### <0.902 <0.90) 

### = A discount factor often (10) percent for the benefit ofthe environment and another ten (10) percentfor the uncertainty ofusing one emission test every five years in lieu ofCEMs, shall be applied to all DERCs (tons) as calculated on a monthly basis. Fuel heating value;;;; 1050 Btulcffor natural gas. a) In requesting DERC approval for credits generated, Sprague shall provide documentation containing a sample spreadsheet with calculation fonnulas used to detennine reported numbers, monthly operating reports ofdaily actual fuel usage including the BTU content and the number ofcubic feet used based on heat input, daily actual NOx mass emissions and NOx emission rates (24-hour**'~'** ."

### ..average), numberofoperating hours perday, and DERCs generated using the allowable emission rate(s) in accordance with this Trading Agreement and Order. net ofthe applicable environmental and potential uncertainty discounts.**~.** ( .', j 

## -.,. , '_

## .. Sprague Paperboard. Inc. 

### 5 Trading Agreement and Order No. 8117B

b) Requests for approval ofall DERCs generated by Sprague under this Trading Agreement and Ordershall be submitted in writing to the Commissioner. Such requests shall be compiled on a monthly orseasonal basis and shall be submitted at least on an annual basis. Approved DERCs generated by Sprague under this Trading Agreement and Order may be held ortransferred to other persons and shall remain valid until they are used or until their vintage expiration date, whichever occurs first. Should Sprague choose to generate addi'ional DERCs, reports documenting these DERCs shall be submitted to the Commissioner on an ozone season, non-ozone season (January through April and/orOctober through December), or annual basis. Such repons shall 

### be compiled on a monthly basis and shall be submitted at least on an annual basis.
4. 

### Ifat any time during the period while this Trading Agreement and Orderremains in effect, Sprague has reason to believe it may be exceeding the FLER limit shown in Table 1 ofthis Trading Agreement and Order, Sprague shall conduct NOx emissions testing ofthe PM Boiler within sixty (60) days after the discovery ofthe potential exceedance in accordance with the following: ( ,. Sprague shall submit to the Commissionerfor his review and written approval an In'ent-To-Test ("ITT') protocol not less than thirty (30) days pnor to the emissions**testin~** required pursuant to thisraragraph ofthis Trading Agreement and Oraer. The

## m protocol shal include at least:

1.

II.

III.

IV.

v.

VI. The Department ofEnvironmental Protection's Bureau ofAir ManagementTest Fonn No.1, "Intent to Test"; System operating parameters indicative ofthe highest operating rate since the previous emissions test, including. but not limited to: steam output rate, temperature and pressure, fuel firing rate, and NOx emissions rate. The

## m protocol shall provide that Sprague shall perform testing as specifiedin Sections 22a-174-5 and 22a-174-22 ofthe Regulations, including operating the FM boiler at not less than ninety percent (90%) ofits maximum rated capacity limit or his;hest operating rate since its last/previous emissions test, whichever IS higher. Sprague shall perform all testing required by paragraph C.4. in accordance WIth the approved

## m protocol. In conducting and perfonning the testing required by paragraph 

### CA. and in analyzing the results ofsuch testlOg, Sprague shall adhere to me'hods specified in Sections 22a-174-5 and 22a-174-22 of'he Regulations and as ap,proved by the United States Environmental Protection Agency (' EPA") and the Commissioner. Sprague shall schedule all emissions testing so as to allow the Commissionerto be present during such testing and to independentlySpr.1gue Paperboard, Inc. 6 Trading Agreement and Order No. 8117B

Vll. verify facility operations, air pollution control equipment parameters, and testing procedures. Within 30 days aftercompleting any emissions testing required by this Trading Agreement and Order, Sprague shall submit to the Commissioner a written report providing the results ofsuch testing; within 15 days ofa notice from the Commissionerindicating any deficiencies 10 such report, Sprague shall submit a revised report.
5. PFI BoilerDERCs and BDERCs Use. Until May I, 2007, before the first day of each month, and beginning on October I, 2004, also before the first day ofeach non-ozone season, Sprague shall have in its possession sufficient approved DERCs for the PFI boilerbased on the following:

a. At all times: Before the first day ofeach month, calculate projected DERCs required for that calendar month as follows:
Estimated DERCs (tons) 

### = {[estimated 24-hourNOx emission rate in

. IbsIMMBtu

- ((0.95) x (24-hour NOx allowable emission limit in Table 1 orproportioned emission rate calculated pursuant to Section 22a-174- 22(f)(2)(A) ofthe Regulations in IbslMMBtu))J x (Estimated fuel use in MMBtu)} + 2000 pounds/ton. No later than the twentieth day ofeach month, Sprague shall calculate and permanently retire DERCs used in the preceding calendar month, as follows:

I. Forthe PFI boileron each day, detennine whether the 24-hour average actual NOx emission rate* is greater than the NOx allowable limit in Table 1 above.

11. When the PFI boilerhas a 24-hour actual NOx emission rate exceeding the NOx allowable limit, calculate and permanently retire the amount of DERCs used, as follows:
Actual DERCs (tons) 

### = {[(24-houraverage actual CEM-recorded NOx emission rate in IbslMMBtu')

- ((0.95) x (NOx allowable emission limit in IbslMlvffitu in Table 1 orproportionedemission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbslMMBtu))] x (actual fuel use in MMBtu)} .;. 2000 pounds/ton.
*This rate shall 

### be calculmed pursuant to the methodology described in 40 CFR Part 75. 

## A 

# ""

### Sprague Paperboard, Inc. 7 

### Trading Agreement and OrderNo. 8117B

b. III. 

### With the exception ofBDERCs, excess DERCs from previous months can be 

### applied to subsequent months. BDERCs are subject to the limitations set fonh in paragraph C.6 ofthis Trading Agreement and Order. During the non-ozone season: In addition to meeting toe 24-houremission limit in Table 22-1 of Section 22a-174-22 ofthe Regulations, Sprague shall meet a non-ozone season emission limit ofO.15IbsIMMBtu. Priorto October I, 2004, October I, 

### 2005 and October I, 

### 2006, Sprague shall estimate and acquire 

### the amountofDERCs orallowances requiredfor such non-ozone season needed to comply with Section 22a-174-22(e)(3) ofthe Regulations as follows:
.EstimatedDERCs (tons) 

### = [Estimatedmaximum fuel use in MMBtu from October I 

### through April 30 x (lowerofthe 

### estimated seasonal average NOx emission rate or the proportioned24-hour allowable emission limitcalculated pursuant to Section 22a-174- 22(f)(2)(A) ofthe Regulations in IbslMMBtu during October 1 

### through April 30

- (0.95 

### x0.15 IbslMMBtu))] .;. 2000 pounds/ton.
No laterthan May 31, 2005, May 31, 2006, and May 31, 2007, in addition to the DERCs retired pursuant to paragraph C.5.a. ofthis Trading Agreement and 

### Order, Sprague shall calculate and pennanently retire DERCs used in the precedingnon-ozone season as follows:
Actual DERCs (tons) 

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

### through April 30 x (lower ofthe actual seasonal average CEM-recorded NOx emission rate orthe proportioned24-hourallowable emission limit calculated pursuantto Section 22a-174- 22(f)(2)(A) ofthe Regulations in IbslMMBtu during October I 

### through April 30

- (0.95 x 0.15 IbslMMBtu))] .;. 2000 pounds/ton.



### c. When the daily ornon-ozone season CEM-recordedNOx emission rate is used to calcufate DERCs used by the boiler. Sprague shall include missing data calculated in accordance with missing data substitution procedures under40 CFR 

### Part 75.
6. BDERCs shall only be used by otherNOx Budget Program sources located in 

### Connecticut. BDERCs shall only be 

### used to offsetozone season exc"ess emissions, and shall not be 

### used forcompliance during the non-ozone season. BDERCs generated during agiven yearshall only be 

### used through the following ozone season. BDERCs are subject to all DERC requirements set forth in this Trading Agreement

### Sprague Paperboard, Inc. 

### 8 Trading Agreement and OrderNo. 81178
and Orderexcept for those requirements pertaining solely to non-ozone season DERCs and as otherwise may be provided.
7. Sprague shall make and keep records of: daily fuel use and fuel type; the 24-hour actual NOx emission rate; starting on October 1, 2004 non-ozone season average NOx emission rates; the number ofoperating hours perday; the number ofinvalid data hours ofthe total operating hours perday; the number ofDERCs created and used each day in accordance with the appropriate emission rates and limits in this Trading Agreement and Order; the number ofDERCs in its possession and purchased (by serial numberifassigned) each month; the number ofDERCs used during the ozone and non-ozone season (by serial numberifassigned); as well as documentation attesting to the fact that approved DERCs used during the ozone season were generated during the ozone season. Generatorcertification ofthis fact shall be sufficient. Sprague shall maintain and submit such records to the Commission.erin accordance with Section 22a-174-22 ofthe Regulations.
8. Record Keeping. Sprague shall retain records and supporting documentation as described in this Trading Agreement and Orderfor a minimum offive years, commencing on the date such records were created. Sprague shall provide the records specified above to 

### the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner.
9. Reporting

a. Annual DERC Report. No laterthan March 1 ofevery year afterissuance ofthis Trading Agreement and Order, Sprague shall submit in writing to the CommisSioner, arecord ofeach sale or othertransfer ofDERCs generated pursuantto this Trading Agreement and Orderfor the previous calendaryear. Sprague shall also include actual NOx emissions from each boiler and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/orpurchased from otherfacilities), generated and/or approved for the previous calendaryear. These reports shall be on aform prescribedby the Commissioner and shall be in monthly increments, and for each boilerby ozone and non-ozone seasons
. 

# . b. Starting on October I! 2004: No laterthan July 30 ofevery year afterissuance of the Trading Agreement and Order, Sprague 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 otherfacilities for the PFI boilerduring the previous Octoberthrough April time period. These reports shall be on fOnTIS prescribed by the Commissioner.
10. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, Sprague may use NOx allowances, pursuant to Section 22a-174-22Q) ofthe Regulations to 

### achieve all or a portion ofthe reductions required by Section 22a-174-22 ofthe Regulations. Any NOx allowance used for compliance with Section 22a-174-22(e) of 

# n, Vthe Regulations shall 

### be subject to all restrictions and/orrequirements applicable to DERCs contained in this Trading Agreement and Order. Each allowance used for compliance with Section 22a-174-22 ofthe Regulations shall be equivalent to one DERC and shall be deducted from Sprague's NOx Budget Program compliance account upon such use. Allowances shall be considered used for compliance with Section 22a-174-22 ofthe Regulations when they are transferred from the facility's compliance account oroverdraft account to a State ofConnecticut NOx allowance retirement account, account ID 

### CTOOOOOOO300 in the NOx Allowance Tracking System (NATS).**,~-.** 

### ( . J ':i. ,- Sprague Paperboard, Inc. 

### 9 Trading Agreement and Order No. 8117B

"



### . '. II. DERC Shortfall. At a minimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in Sprague's 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 to institute any proceeding ortake any other action to require additional upward adjustment, based on the gravity ofany alleged noncompliance or violation oflaw, Sprague shall pennanently retire the quantity ofDERCs equivalentto the excess emissions plus a 100% premium within sixty (60) days ofSprague's discovery ofthe DERC shortfall. Sprague shall certify and report any such DERC retirement to the Commissionerin accordance with paragraph C.33 ofthis Trading Agreement and Order.
12. Vintage Restriction. Forthe purposes ofcompliance with**S~ction** 22a-174-22 ofthe Regulations, DERCsialiowances shall only remain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch DERCslallowances. DERCs/aliowances generated/allocated more than five (5) calendaryears ago are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above the DERCsiallowances generated/allocatedpriorto calendaryear 2000 shall be valid for use until December 31, 2004. 13, FLER Exceedance. Noncompliance with an establishedFLER shall subject Sprague to make restitution by matching the quantity ofemissions ("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 IbslMMBtu, multiplied by the total heat input during the period ofnoncompliance 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 Ordershall affect the Commissioner's authority to institute any proceeding ortake any otheraction to require additional upward adjustment. based on the gravity of any alleged noncompliance or violation oflaw. Sprague shall pennanently retire DERCs calculatedin accordance with the above plus a 100% premium within sixty (60) days ofSprague's discovery ofthe FLER exceedance. Sprague shall report any FLER exceedance to the Commissioner in accordance with paragraph 

### C.33 ofthis Trading Agreement and Order.
14. FLER Modification. The FLER set forth in Table 1 ofthis TradingAgreement and Ordermay 

### be modified only after the consent ofthe Commissioner by written modification ofthis Trading Agreement and Order. Sprague Paperboard, Inc. 

### 10 Trading Agreement and Order No.8I 17B 

# o

15. Emissions Testing. Pursuant (0 Section 22a-174-22(k) ofthe Regulations Sprague shall conduct NOx. emission tests ofthe PM boiler at least once every five years commencing from the next emission tcst due date as provided in Table 1 ofthis Trading Agreement and Order.

. 16. Extension. No later than May 1,2007 with respect to the PH boiler, Sprague shall comply with the requirements ofSections 22a-174-22(d)(l) and 22a-174- 22(d)(2)(A) ofthe Regulations. No laterthan May 1,2007, with respect to the FM boiler, Sprague shall comply with the requirements ofSection 22a-174- 22(d)(I) ofthe Regulations. There is no assurance that afterfull program review ofthis and otherTrading Agreements and Orders that the Commissioner will 

### grant a written extension ofthis Trading Agreement and Order.
17. Future Compliance Report. On orbefore September 1, 2006, Sprague shall submit a report in writing to the Commissioner, as directed in paragraph C.34. ofthis Trading Agreement and Order, indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the 

### PA and 

### RA: boilers on and after May 1,2007.
18. Full compliance. Sprague shall not be considered in full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Orderhave been completed as approved and to the Commissioner's satisfaction.
19. Approvals. Sprague shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Orderin a complete and approvable form. Ifthe Commissionernotifies Sprague that any document or other action is deficient, and does not approve it with conditions or modifications, it is deemed disapproved, and Sprague shall correctthe deficiencies and resubmit it within the time specified by the Commissioneror, ifno time is specified by the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document orother action under this Trading Agreement and Order, the Commissionermay approve the document orotheraction as submitted orperfonned or with such conditions ormodifications as the Commissionerdeems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance ordelay.
20. 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" meJ.ns the Commissioner or a representative of the Commissioner; "Ozone se:lSon" me:.ms the period from May 1 through 

# C· . ., -JSprague PiJperboiJrd. Inc. 11 Trading Agreement and Order No. 81178

21. September 30 in any given calendaryear, "Non-ozone season" means the period from October 1 through April 30 in any given calendaryear.
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 Commissioner ofany 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 Commissionerunderthis Trading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofany document orother action, 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 andOrder, the word "day" as used in this Trading Agreement and Order means calendarday. 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 orfederal holiday shall be submitted orperformed by the next day which is nol a Saturday, Sunday or Connecticut orfederal holiday.

, 

## , , 

### " 22. Certification ofdocuments. Any documenl, including but not limited to any notice, which is required to be submitted to the Commissionerunder this Trading Agreement and Order shall be signed by Sprague or, ifSprague is not an individual, by an individual who is an authorized representative ofSprague, in accordance with Section 22a-174-2a(a) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actually preparing such document, and each such individual shall certify in writing as follows:
"1 have personally examined and am familiar with the information submitted in this document and all attachments thereto, and I certify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the infonnation, that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. 1understand that any false statement made in the submitted infonnation is punishable as acriminal offense under**§53a~157b** ofthe Connecticut General Statutes and any other applicable law."
23. Noncompliance. This Trading Agreement and Orderis a final orderofthe Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject Sprague to an injunction and penalties.
24. False statements. Any false statement in any infonnation submitted pursuant to this Trading Agreement and Orderis punishable as a criminal offense under §53a-157b ofthe Connecticut General Statutes and any other applicable law.
25. Notice oftransfer, liabilitv ofSprague. Until Sprague has fully complied with this Trading Agreement and Order, Sprague shall notify the Commissioner in writing no laterthan 15 days after tronsferring all or any portion ofthe facility,

### Sprague Paperboard, Inc. 12 Trading Agreement and OrderNo. 8117B the operations, the site orthe business which is the subjectofthis Trading Agreement and Orderorafterobtaining a new mailing orlocation address. Sprague's obligations under this Trading Agreement and Ordershall not 

### be affected by the passage oftitle to any property to 

### any otherperson or municipality.
26. Commissioner's powers. Nothing in this Trading Agreement and Ordershall affect the Commissioner's authority to institute any proceeding ortake any otheraction to prevent or abate violations oflaw, prevent or abate pollution, recovercosts and natural resource damages, and to impose penalties for past,

.present, orfuture violations oflaw. If 

### at any time the Commissioner determines that the actions taken by Sprague pursuant to this Trading Agreement and Orderhave not successfully corrected all violations, fully characterizedthe ex.tent or degree ofany pollution, or successfully abated or preventedpollution, the Commissionermay institute any proceeding to require Sprague to undertake furtherinvestigation orfurther action to prevent orabate violations orpollution.
27. Sorague 's obligations under law. Nothing in this Trading Agreement and Order shall relieve Sprague ofother obligations under applicable federal, state and local law.
28. No assurance by Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissionershall 

### be construed to constitute an assurance by the Commissionerthat the actions taken by Sprague pursuant to this Trading Agreement and Order will result in compliance or prevent or abate pollution.
29. Access to facility. Any representative ofthe Department ofEnvironmental Protection may enlerthe facility without priornotice forthe purposes of monitoring and enforcing the actions required or allowed by this Trading Agreement and Order.
30. No effect on rights ofotherpersons. ThisTrading Agreement and Order neithercreates nor affects any rights ofpersons ormunicipalities that are not parties to this Trading Agreement and Order.
31. No Creation ofProperty Rights. This Trading Agreement and Orderdoes not create any property rights with respect to those DERCs.
32. Notice to Commissionerofchanges. Within 15 days ofthe date Sprague becomes aware ofachange in any information submitted to the Commissioner under this Trading Agreement and Order, orthat any such information was inaccurate ormisleading orthat any relevant information was omitted, Sprague shall submit the correct or omitted infonnation to the Commissioner.
33. Notification ofnoncompliance. In the event that Sprague becomes aware that

### ~,**~#**

### Sprague Paperboard, Inc. 

### 13 Trading Agreement and OrderNo. 81178



### ( 34. it did not ormay not comply, ordid not ormay not comply on time, with any requirement ofthis Trading Agreement and Orderor ofany document required hereunder, Sprague shall immediately notify by telephone the Unit identified in the next paragraph and shall take all reasonable steps to ensure that any noncompliance ordelay is avoided or, ifunavoidable, is minimized to the greatestextentpossible. Within five (5) days ofthe initial notice, Sprague shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance ordelay and propose, forthe review and written approval ofthe Commissioner, dates by which compliance will be 

### achieved, and Sprague shall comply with any dates which may be approved in writing by the Commissioner. Notification by Sprague shall not excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so statedby the Commissionerin writing.
Submission ofdocuments. Any documentrequired to be 

### submitted to the Commissionerunder this Trading Agreement and Order shall, unless otherwise specifi.edin this Trading Agreement and Orderorin writing by the Commissioner, be directed to: DepartmentofEnvironmental Protection Bureau ofAirManagement Emissions Trading Unit 79 Elm Street Hartford, Connecticut 06106-5127

### Sprague Paperboard, Inc. 14 

### Trading Agreement and OrderNo. 8117B 

### Sprague consents to 

### the issuance ofthis Trading Agreement and Orderwithout further notice. The undersigned certifies that he/she is fully authorized to enterinto this TradingAgreement and Orderand to legally bind Sprague to the terms and conditions ofthe Trading Agreement and Order. SPjue**Paperb~ard,** 

### Inc. Signature: 

# cIlOAM 

# if. A 

## V

Name:
Title:


### Date:

Issued as afinal orderofthe CommissionerofEnvironmental Protection. 

# G£,&&J/

/ GinaMcCarthy



### . /1 Commissioner 

# (/

MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED 

### CertifiedDocument No. 7002 2030 0007 9636 1004 

### Date

'_

### ..