STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STAIE OF CONNECTICUT

AND

MONTVILLE POWER liC

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!~u SE? .) l ::Q4 WI I ITRADING AGREEMENT AND

jBy _d ORDER NO. 8216A

MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICATION

In the maner of a Trading Agreement and Order between the Commissioner of Environmental

Prote<:tion ("Commissioner") and Montville Power liC ("MPliC").

WHEREAS. the Commissioner and MPLLC. having agreed to the terms and conditions set

forth in Trading Agreement and Order No. 82I6A issued on April 30, 2003, do now, by mutual

agreement, modify said Trading 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) of the Regulations, MPliC intends both to

acquire and generate approved DERCs until May 1, 2007 for boiler 5 at the

facility. Approved DERCs are defined for purposes of this Trading Agreement

and Order as those for which the Commissioner has provided written authority for

use in compliance with Section 22a-174·22 of the Regulations.

3. Delete paragraph B.1. and substitute the following therefor:

Comply with Se<:tion 22a-174-22(d)(l) of the Regulations through use of Budget

Discrete Emission Reduction Credit ("BDERC") and DERC trading. .

()

4. Delete paragraph C.6.b. and substitute the following therefor:

During the non-ozone season:

During the period from October 1 through 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 of Section 22a-174-22 of the Regulations, meet a non-ozone season

emission limit of 0.15 IblMMlltu. Prior to October I, 2003, October I, 2004',

October 1,2005, and October I, 2006, MPliC shall estimate and acquire the

amount of non-ozone season DERCs or allowances needed to comply with

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SIP 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 cr 06382

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 of the Regulations of

Connecticut State AlZencies.

Nonattainment Area Classification Severe

Annual DERCs needed Estimated 5 non-ozone

Annual DERCs 2enerated Estimated 2 ozone (BDERCs)

Compliance Time Period Until April 30, 2007.

Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and

Use. (See Table 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

Boiler 5 #6 oil 995 CEM CEM 0.25 NA NA

R-107-0017 Nat. gas " " " 0.20 " "

Non-ozonec " " " 0.15 " "

II. SPECIAL REQUlREMENTS

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

Order No. 8216A issued on April 3D, 2003.

b. Calculations of credits used or generated shall be as specified in Trading Agreement and

Order No. 8216A.

c. Starting on October 1.2003 and until April 30. 2007 during the non·ozone season: For

purposes of generating DERCs from the boiler at the facility. Montville Power LLC

shall use 0.15 IbsIMMBtu of heat 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 of all

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

o

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"'-"

5.

6.

Section 22a-174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) = [Estimated fuel use in MMBtu from October I through

April 30 x Oower of the 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 of 2004, 2005, 2006, and 2007, in addition to the DERCs

retired pursuant to paragraph C.6.a. of this Trading Agreement and Order,

MPLLC shall calculate and permanently retire DERCs used in the preceding nonozone season as follows:

Actual DERCs (tons) = [Actual fuel use in MMBtu from October I through April

30 x (lower of the actual seasonal average NOx emission rate or the proportioned

24-hour allowable 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 Statement and 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) of every year after issuance of this

Trading Agreement and Order, MPLLC shall provide to the Commissioner, a

record of each sale or other transfer, and use of any and all of the DERCs

approved within and subsequent to issuance of this Trading Agreement and Order

'until all such DERCs have been used or are no longer in MPIl..C's possession.

tv1PllC shall also include actual NOx emissions from the boiler and the amount

of a\l DERCs used (including serial numbers (if assigned) and approved DERCs

generated and/or purchased from other facilities), generated and/or approved for

the previous calendar year and October through April time period. These·repons

shall be on a fonn prescribed by the Commissioner and 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 a minimum, DERCs required shall be adjusted upwards by

100% if DERCs 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 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 of any alleged noncompliance or violation of law. MPIl..C shall

permanently retire the quantity of emissions caused by the exceedance plus a
Montville Power LLC 3 Trading Agreement and Order

No. 8216A Modification No. I

100% premium within sixty (60) days of MPLLC's discovery of the DERC

shortfall. MPLLC shall certify and report any such DERC retirement to the

Commissioner in accordance with paragraph C.31 of this 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 of Sections 22a-174-22(d)(l) and 22a-174-

22(d)(2)(A) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orde~ that the Commissioner

will grant a wrinen extension of this Trading Agreement and Order.

8. Delete paragraph C.IS. and substitute the following therefor:

Future Compliance Report. On or before September I, 2006, MPLLC shall submit

a report in writing to the Commissioner, as directed in paragraph C.32. of this

Trading Agreement and Order, indicating how the facility shall comply with

section 22a-174-22 of the Regulations with respect to the boiler on and after May

1,2007.

{ "

V

All other tenns and conditions of Trading Agreement and Order no. 8216A 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.
Montville Power LLC 4 Trading Agreement and Order

No. 8216A Modification No. I

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

without funher notice. .

Montville Power lie

Signature:

Type Name:

Type Title:

Date:

c~,~ R4§ionol e'flVir{)(\{f'8fIf'ol ~~r

9--ls-OY

Entered as a modification of an Order of the Commissioner of Eny.ir mental Protection

//..,i numbered 8216A this _-<J&~__day of ~~~~L,

MAILED CERTIFIED MAlL,

RETURN RECEIPT REQUESTED

Certified Document No.