SIP DESCRIPTION

- Norwalk Power LLC-Trading Agreement and Order No. 8218A Modification 1 I. SIP

- DESCRIPTION OF DERC CREAnON AND/OR USE SIP SUMMARY TABLE Tradin2 Al!reement and Order No. 8218A Norwalk Power LLC Manresa Island Ave South Norwalk

### cr06854 Identifier Clien' 7741 Town #

### ill Premise #

## 141 Sequence #

### 1: Contact Ms. Cynthia Karlic Tel: (860) 343-6962 Fax (860) 343-6969 RC2ionai Mana2er Pollutant and Regulatory Standard: NOx 

### I Section 22a-174-22 ofthe Regulations of Connecticut State Agencies. Nonattainment Area Classification Severe Annual DERCs needed Estimated 40 non-ozone Annual DERCs generated Estimated 50 ozone (BDERCs) Comnliance Time Period Un,il Anril 30 2007. Max. Emission Rate: CEM and [ullload emission rate (FLER) for Generation and Use. (SeeTable I below):
Table I NOx Emission Rates and Allowable Limits Unit Fuel 

### Maximum StackTest FLER Allowable Date of Next 

### PIR number Capacity (ppmvd) IbsIMMBtu 

### Rate Stack Stack MMBtulhr IbsIMMBtu

_ 

### Test Test Due Boiler I #6 oil 1776 CEM CEM 0.25 NA NA R-1l7-0028 #2 oil 

### " " " 0.17 

### " " and 

### Non-ozonec " 

### " " 0.15 

### " 

### ., Boiler2 R-137-0030 II. SPECIAL REQUIREMENTS


### a. This Trading Agreement and OrderModification supersedes Trading Agreement and OrderNo. 8218A issued on April 30, 2003. 

### b. Calculations ofcredits 

### used or generated shall be as specified in Trading Agreementand Order No. 8218A.


### c. Starting on October 1,2003 and until April 30, 

### 2007 during the non-ozone season: For purposes ofgenerating DERCs from the boilers at the facility, Norwalk Power LLC shall use 0.15 IbslMMBtu ofheat 

### input when operating on No.6 fuel oil and/or No.2 fuel oil as the non·ozone season baseline emission rate for the boiler. Ten (10) percent ofall 

### DERCs (tons) generated by the boilers shall be retired by the facility and permanently removed from all calculations on anon-ozone season basis to assure abenefitto the environment.

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

TRADING AGREEMENT AND ORDER NO. 8218A MODlFICAT10NNO.l AND NORWALK POWER u..C STATE OF CONNECTICUT

TRADING AGREEMENT AND ORDER MODlFICATION In the matterofaTrading Agreement and Order between the CommissionerofEnvironmental Protection ("Commissioner") and Norwalk Poweru..c (''NP''). WHEREAS, the Commissioner and NP, having agreed to the terms andconditions set forth in Trading Agreement and OrderNo. 821BA issued on April 30, 2003, do now, by mutual agreement, modify said Trading Agreement and Order as follows: 1. Delete the date September 3D, 2004, and substitute therefor May 1,2007, in paragraphs A.9., c.l., C.2., C.3.a., C.3.a. footnote 3, C.3.b., C.3.c., C.3.d., C.3.e., C.3.f., and C.6. 2. Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a-174-220) ofthe Regulations, NP intends both to acquire and generate approvedDERCs until May 1, 2007 for boilers 1 and 2 at the facility. Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissioner has provided written authority for use in compliance with Section 22a-174-22 ofthe Regulations. 3. Delete paragraph B.I. and substitute the following therefor: Comply with Section 22a-174-22(d)(I) ofthe Regulations through use. ofBudget Discrete Emission Reduction Credit ("BDERC") andDERC trading. ' 4. Delete paragraph C.6.b. and substitute the following therefor:



# ,. ..**~j** 

### During the 

### non-ozone season: During the period from October I through April 30, inclusive, each yearuntilMay 1, 2007, the boilers shall, in addition to meeting the 24-hour emission 

### limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations, meet a non-alone season emission limit of0.15 IbfM1v1Bm. Prior to October 1, 2003, October 1, 2004, October 1, 2005, and October I, 2006, NP shall estimate and acquire the amount ofnon-Olone season DERCs or allowances needed to comply with Section 22a- (Printed on Recycled Paper) 79 Elm Street • Hartford, 

### cr 06t06· 5127 Ilttp:lldCp.sllte.ct.uS All Eq"a.l OpfH'rI""iry Employe'1 orwalk PowerliC 2 

### Trading Agreement and Order No. 82l8A Modification No.1



# C) 5.

6. l74-22(e)(3) ofthe Regulations as follows: 

### Estimated DERCs (tons);;; [Estimated fuel use in :MMBtu from October 1through April 30 x (lowerofthe estimated seasonal average NOx emission rate or the 

### proportioned 24-hourallowable emission limit in IblMJv1Btu during October 1 through April 30

- (0.95 x 0.15IblMMBtu))J + 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, NP 

### shall calculate and permanentlyretire DERCs used in the precedingnon-ozone season as follows: Actual DERCs (tons) 

### = [Actual fuel use in MMBtu from October 1 through April 

### 30

### x (lowerofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in lblMMBtu during October 1 through April 30

- (0.95 x 0.15lblMMBtu»J + 2000 pounds/ton. 

### Delete paragraph C.lO. and substitute the following therefor: Annual Emission Statement and Non-Ozone Season Emission Statement. No later than March 1 for the previous calendar year and July 30 (for the Octoberthrough 

### April time 

### period onlystarting in 2(03) ofevery year after issuance ofthis Trading Agreement and Order, NP shall provide to the Commissioner, arecord of each sale or othertransfer, and use ofany and all ofthe DERCs approved within and subsequent (Q 

### issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used orare no longer in NP's possession. NP shall also include actual NOx emissions from the boilers and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/or 

### purchased from otherfacilities), generated and/or approved for the previous calendar year and Octoberthrough April time period. These reports shall be on a 

### fonn prescribed by the Commissionerand shall be in monthly 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% ifDERCs are notin NP's possession for use priorto the first day ofeach month or applicable season. However, nothing in this Trading Agreement and Ordershall affectthe 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 oflaw. NP shall permanently retire the quantity ofemissions caused by the exceedance plus a 100% premium withinNorwalk PowerLLC 

### 3 

### Trading Agreement and Order No. 8218A Modification No.1 sixty (60) days ofNP's discovery ofthe DERC shortfalL NP shall certify and 

### repon 

### any such DERC retirement to the 

### Commissionerin accordance with paragraph C.31 ofthis Trading Agreement and Order. 7. Delete paragraph C14. and substitute the following therefor: Extension. No later than May I, 2007, with respect to the boilers, NP shall comply with the requirements ofSections 22a-174-22(d)(l) and 22a-174-22(d)(2)(A) of 

### the Regulations. There is no assurance that after full program review ofthis and 

### otherTrading Agreements and Orders 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 1, 2006, NP shaIl submit a report 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 boilers on and afterMay 1,2007. 

# :0 All 

### other terms and conditions ofTrading Agreement and Order no. 8218A issued 

### by the Commissioneracting under Chapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 ofthe Connecticut General Statutes shall remain in effect.

### Norwalk PowerLLC 4 

### Trading Agreement and Order 

### No. 8218A 

### Modification No. I 

### NP hereby consents to the entry ofthis modification to the Trading Agreement and Order without fUllher notice. 

### NorwalkPowerLLC Signature; Type Name: 

### Type Title

# ~/OnO-l**EnVl(Dfl~1** 

# rYl1lnllJe.r Date

## 2~ 

# J,c;-atj Entered as amodification ofan Orderofthe CommissionerofEnvironmental Protection numbered 8218A 

### this 

## _!.:/t.:::e-li..

__ day of
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