# STATE OF CO NECTICUT DEPARTMENT Of ENVIRONMENTAL PROTECTION

The State ofCOI"lJ"lecticui and Sprague Paperboard, Inc. ) ) 

# j Trading Agreement and Order :-;0.8117



# . , I 

### Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and Sprague Paperboard, Inc. ("Sprague") a,gree that it is in the public interest that they work 

### cooperativelyto improve the all**~ualiry** within 

### the State ofConnecticut and that the use of discrete emissions reduction credit ("DERe") trading to reduce nitrogen oxide (''NOx'') 

### emissions will 

### achieve this result in atimely and**cost-effectjv~** 

### manner: A. At 

### the request and with the agreement ofSprague, the Conunissioner finds the following:
1. Sprague Paperboard, Inc. is a corporation which on April 8, 1999, purchased from International Paper Company, and now owns and operates the manufacturing facility at 130 Inland Road, Versailles, Connecticut ("facility"). 2. At the facility,**Spra~e** operates two (2) Babcock and Wilcox oil/gas-fired steam boilers ("boilers"). une is a 288 MMBtulhr PHboiler and the otheris a 70.1 

### MMBtulhrFM boiler rhereinafter

### PFI boiler and 

### FM boiler) which are subject to Section 22a-174·22 o(the Re\?:ulations ofConnecticut State A\?:encies ("Regulations"). A continuous emissions monilor ("CEM"), cenified to 40 Code of Federal Regulations 

### Pan 60, measures actual 

### NOx emissions from the PFI boiler. Depanrnent ofEnvironmental Protection ("DEP") witnessed stack testing is used to detennine the NOx emission rate from the FM boiler. 

### 3. Section 2220-174·22, Table 22·1 ofthe Regulations sets allowable emission rate limits of0.25 IbsIM?vfBtu for these boilers when burning #6 fuel oil and 0.20 IbslMMBtu when**burn~g** natural gas. 4. The 

### PFI boiler operates on either

### #6 fuel oil, or natural gas. The 

### CEM data supplied by Sprague shows that 

### the

### PFI boiler

### NOx emissions 

### are above the allowable emission rate of0.25 Ibs/MMBtu when operating on**~6** fuel oil una above the allowable emission rate ofO.20 IbsMlvfBru when operating on natural gas. 5. By virtue 

### ofthe above, the 

### NOx emission rate from the 

### PFI boiler is in violation of Section 22a-174-22, Table 22·1 ofthe Regulations allowable emission rate limits.
6. Priorto Sprague's purchase ofthe plant, the 

### FM boilerDEP witnessed stack testing (conducted February 16,1996) showed that the NOx emissions are 0.3971bslMMBtu "':hich is above the allowable emission rate of0.25 Ibs/MMBru when burning ;:::'6 fuel oil.

-

I. 

### By virtue ofthe above, the 

### NOx emission rate from the FM boiler

### \\·hen burning;;,6**fu~J** oil is in violation ofSection 222.·174·22. Table 22-1 ofthe Re!!ul:ltions allowable emisslon rale limit.

. - 

# s. To eliminate excess 

### NOx emissions from the FM boiler when burning;:6 fuel oil, Sprague proposed tl--jat on and after April 10,2001, #6 fuel oil will no longer be bumed in the 

### FM boiler. Sprague will burn only natural gas in the F!v1 boiler.**(Pnn,~** 0:"1 Recycle<: ?a:>ef)**7~** =Im Saee!

. Hamare. CT 06106-5127 An EEQv.i OPPOrTvrll/y EEmplOy" • fI!,pllrj'PSI.r6 C: vs Celebrating a Ce.nrury

## ofForest Conservation Leadership 1901 2001SOi3gUe P':!Derboard. Inc. Trading Agreement and Order No. 811 i



## .• / 9. Subsection 22a-174-22(j) ofthe Regulations allows the O\\'Tler oroperator ofa source to use emission reduction trading to offset excess NOx emissions. Such reductions sha!l be, at a miniml:lm, eguivaJent**t~** those**e!1?is~ion r~di.!cti::ms**  i.!lat would be achieved by complYIng wnh all apphcable emISSions hrmtatlons In subsection (e) of Section 22a-174-21 ofthe Regulauons. 10. Pursuant to Section 22a-174-12o) ofthe Regulations, Spraguerroposes to acquire and use approved**DER~s** monthly, as specihed in Section C 0 this Trading Agreement and Order, on an as-needed basis to compensate for excess NOx emissions, as**dete~ed** by:



## , a) Forthe PFl boiler. actual NOx emissions based OD CEM data from the PFl boilerwheneverthe 24-hour average exceeds the NOx emissions rate of Section 22a-174-22(e) ofthe Regulations; and, b) Sprague had in its inventory 35.97 tons approved ozone and 15.361 tons of approved non-ozone DERCs as clant assets from the purchase ofthe faciliry from International PaperCompany on April 8, 1999, to compensate for the anticipated excess NOx emissions from the PFI boiler. 11. During the month ofJune 1999, Sprague's NOx emission spreadsheets show that Sprague did not have sufficient DERCs on hand priorto use to offset 21 tons excess NOx emissions during the ozone season as shown in spreadsheets anached hereto and incorporated by reference into this Trading Agreement and Order as Exhibit I. 12. On July 1, 1999, Spraguepurchased 103 tons ofozone and 72 tons ofnon-ozone approved DERCs, to correct the insufficiency ofDERCs and to have additional DERCs on hand for excess emissions. On November 11, 1999 Spraguepurchased 125 tons non-ozone DERCs and on February 22, 2000 purchased 40 tons ofozone DERCs for use to offset excess NOx emissions as shown 

### in spreadsheets anached hereto and incorporated by reference into this Trading Agreement and Order as Exhibit 2. 13. OnJuly 1, 1999, 

### in accordance with the requirements contained in paragraph C.l of this Trading Agreement and Order, Sprague immediatelyretired two times (2x) the DERC shortfall described inparagraphA.l1, for atotal of42 tons. (The first 21 tons ofDERCs to offset the excess NOx emissions, plus another 21 tons for the 100% premium required for not having sufficient DERCs on hand prior to use, for a total penalty of42 tons ofapproved ozone DERCs). 14. In .1996, anatural gas supply pipeline was installed. to the facility and new 10w-NOx firing systems were installed In the PFI and FM bOIlers. The 10w·NOx burners reduced the FM boiler's NOx emission rates below its permined, allowed and actual 1990 emission rates when burning natural gas. DEP wltnessed emissions testing conducted April 10,2001, confinned that Sprague's FM boilerNOx emissions were 0.1 

### Jlbsf.M:N1Btu which is below the 0.20 IbsJM:MBtu emission limitation specified in Section 12a·li4-22(e) ofthe Regulations when burning natural gas to generate emission reduction credits. 15. Pursuant to Section 22a-174-220) ofthe Regulations, Sprague intends to generate**ap~ro:,ed** DERCs using the FM boiler when burning natural gas using a full load emISSIon rate (FLER) of9.13**jbs/M~\.1Bru.** 16.**~~en** properly documented by Sprague, and approved by the Commissioner, the ernlssion reductions identified above, 2..I.Jd as computed in accordance with the terms ofthis Trading Agreement and Order, will conform to the requirements ofSeclion 12a-174-12(j) ofthe Regulations. Specifically, the reductions wiIl be:Sor22ue Paoerboard. lnc. Trading Agree:-nem and Order !\o. SII i

### '~J'" . 

### . 

# '- Real because they result in a reduction ofactual emissions released into the air, net of anyconsequential increase in actual emissions resulting from shifting demand. The emission reductions are properly measured, recorded and reponed. Quantifiable because they are based on stack testing data obtained every five years. Surplus because they are notrequired by any Connecticut statute orregulation mandated bya**c~ent** StateImplementation Plan ("SIP"), and are not currentlyrelied upon 

### in any ap'plicable anainmentplan, anyreasonable funberprogress plan or milestone demonstration.
Permanent because the advanced control system is in place and operating, and an appropriate tracking system is in place to monitor all data required to verify and quantify the creation ofDERCs.
Enforceablebecause the DERCs are approved by the Commissionerretrospectively after the submission by Sprague ofthe seasonal orannual repon that will document their creation.


### 17. Based on the FLERof0.13 IbsIMMBtu the DERCs generated bythe FM boilerare as shown in Table 1 below:


### Table I Sprague DERCs Generared using a fLER of0.13 IbslMMBru Year Ozone senson Tol"o$ Non-ozone seasonTons Total 1999 5.4624 4.J649 9.62i3 2000 0.6506 6.3134 6.9640 2001 0.0581 2.5586 2.6167 Total 

# I 6.1711 13.0369 19.2080

1B. DERCs generated above by Sprague have been reduced by permanentlyretiring len (10) percent for the benefit oftbe environment (0.68 ozone season a.J1d 1.46 non-ozone 

### season), and an additional ten (10) percent ofthese DERCs (0.76 ozone season and 1.61 non-ozone season) to address uncertainty from using stack testing rates obrained once every 5 years in lieu ofCEM results daily.
19. As documented in Exhibit 

### 3, the total available DERCs generaled by the FYi boiler between April 8, 1999 and Dec 31,2001, after adjusting downwardly as described in parag;aph A. 19 above and rounding down to the nearest whole number for annu31 serial number assignment purposes. is shown in Table 

### 2 a.l"Jd Table 

### 3 below;



## 3SOr22:Ue Paoerboard. LllC. Trading Agreement and Order 

### >':0. S11 i 

# I Table 2 Sprague DERCs Generated 

# I (after subtracting discounts and rounding down to tbe nearest whole ton each year)

Year Ozone season Ozone**se~son** Tons !'ion-ozone season Nan-aza", sozsan

# I
Talal,fi" Tons (after rounding Tons Tons (after roundm£ down) roundine. down) do\lo'Tl.} 

# , 1999 5.4624 5 4.1649 

# , 9 2000 0.6506 

### , 0 6.3134 6 6 200} 0.0581, 0 2.5586 2 2 Total 6.1711 5 13.0369 12 17

20. Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissioner has provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations.
21. By agreeing to the issuance ofthis consent order, Sprague makes no admission offact or law with respect to the matters addressed herein other than the facts asserted in paragraphs A.!., A.2. and A.3.

: B.l. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order.,

. and pursuant to Section 22a-174-22(d)(3) afthe Regulations, hereby allows Sprague to complywith Section 22a-174-22 ofthe Regulations through use ofDERC trading referenced in Section A ofthis Trading Agreement and Order, to achieve aportion ofIhe NOx emission reductions required by Section 22a-174-22(d) ofthe Regulations.
B.2. 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 17 tons ofNOx DERCs (5 tons ozone and 12 tons nonozone season) as shown in Table 3 below. These DERCs may be used for the purposes of compliance under Section 22a-174.22(j) ofthe Regulations, to achieve aponion ofthe nitrogen oxide emission reductions required.
Table 3 Sprague Approved DERCs Generated in 1999 through 1001 Ye:lr 

### I Ozone season 

### I Tons Non-ozone season 

### I Tons 1999' CT99/81I7(DC)Na,az(1-5) '5 CT99/8!17(DC1Nal<noz(1-4) 

### I , 1000 

### I N/,4,. I 0 

### I CTOD/81 1;IDC)Noxnoz(1·6) I 6 2001 I N/A 

### lot CTOl/8117(DC}Noxnoz(l.2) I 2 

### I Total 

### I 5 I Total I 11 

### I Expiration Date 

### I 11131/04 

### I 12131/05 

### I 12i31/06

. .../ B.3. Upon sufficient documentation as prescribed belo\\", the Commissioner may prOVide \\iJllen approval ofadditional DERCs generated by Sprague retTospecti\·ely. Approved DERCs may be held, used or transferred by Sprague to other persons. Such DERCs shall remain \'alid untiJ used or until April 30, 

### 200i, whichever occurs first.Sora£!ue Paoerboard. Inc. Trading Agreement and Order No. SIll



### C. With the agreement ofSprague, the Commissioner, acting under COIU1ecticut General StaiUteS Sections 22a-6, 22a-1I1, 22a-174, 22a-1I6, and 

### 22a-III, orders Sprague as follows:
1, Penalty Premium. Fornot having sufficient DERCs on hand prior to use to offset excess NOx emissions for the month ofJune 1999 as described in paragraph A.II. above, Sprague shall upon issuance ofthis Trading Agreement and Orderhave obtained and immediately retired, in accordance with paragraph A.13, fWO times (2x) the DERC shortfall for atotal of42 tons. (The first 21 tons ofDERCs to restore environmental balance for the excess NOx emissions,

### pl~s another 21 tons for the 100% premium required for not having sufficient DERCs on hand priorto use, for atotal penalty of42 tons ofapproved Ozone DERCs).
2. Sprague agrees as ofApril 10,2001 to cease burning #6 fuel oil in the FM boiler and burn onlynatural gas.
DERC generation for the FM boiler Forpurposes ofgenerating DERCs from the FM boiler when burning natural gas at the facility, Sprague shall use the appropriare baseline emission rate(s) ofthis Trading Agreement and Order as described below. When calculating such DERCs, Sprague shall use the acrual fuel usage data for the boiler in M1vfBru perhour orday when detennining heat input. a) Forthe FM boilerwhen**bumin~** natural eas onlv, DERCs (tons) generated by Sprague shall be calculated monthly using aFLER of0.13 IbsJM:MBru as follows:
DERCs (tons) Generated = {[(FM boilernatural gas heat input in MMBru) x (RACT limit 0.20 IbsIMMBru

- FLER limit ofO.13IbslMMBtu)].;- 2000 lbs/ton) x (0.90) x (0.90) b) Sprague shall comply with a full load emission rate (FLER) of0.13 IbslMMBru of heat input averaged over a 24-hourbasis when burning narural gas. The FLER may be adjusted upon satisfactorydemonstration to the DEP and v.,-rinen approval by the Commissioner. c) Spreadsheets showing the new balances resulting from these calculations referenced in paragraph C.3.a. are attached hereto and incorporated by reference into this Trading Agreement and Order as Exhibit 3. d) After full program review, and ifthe Cornmissioner deems it appropriate, the Commissioner may allow the survival and use ofthe DERCs generated by the issuance ofthis Trading Agreement and Orderbeyond April 30, 2007. e) Sprague shall maintain records for the boiler showing daily NOx mass emissions. and actual NOx emission rates (2.:1-hour average). Sprague shall also maintain records showing a monthly total ofall DERCs generaled nel ofIhe applicable en\'lronment::d and potemial uncertain:y discounts.

# .**Sora~!Ue** Paoerboard. Inc. Trading Agreement and Order No. S117

4. f) 

### In requesting 

### DERC approval for credits generated, Sprague 

### soa11 provide documentation containing a sample spreadsheet with calculation fonnulas used to determine reponed numbers, monthly operating reports ofdaily actual fuel usage including the BTU content and the number ofcubic feet used 

### in MMB!u and actual heat inpU! based on daily actual NOx mass emissions and NOx emission Tales**(2~­** hour average), number ofoperating hours perday, and DERCs generated using the baseline emission rate(s) referenced in paragraph C.3. afthis Trading Agreement and Order, net ofthe applicable environmental and potential uncertainty discounts. 

# , g) Upon sufficient docwnentation that $pragnehas met therequirements ofparagraphs C.l., C-2., and C.3., ofthis Trading Agreement and Order, the Commissionermay provide wrinen approval ofDERCs created 

### by Sprague retrospectively, 

### in addition to the 17 tons DERCs (5 tons ozone and 12 tons**non~6zone** season) approved in paragraph B. ofthis Trading Agreement and Order. Requests for approval ofall subsequentDERCs created shall be submitted in writing to the Commissioner. Approved DERCs created 

### by Sprague may be held or transferred to otherpersons. Such DERCs shall remain valid until they are used oruntil April 30, 2007, whichever
occurs first. h) Should Sprague choose to generate additional DERCs, repom documenting these DERCs shall be submined to the Commissioner on an ozone season, non-alone season (January through April and and/or Octoberthrough December), or aruma] basis. Such repom shall be compiled on a monthly basis and shall be submined at least on an annual basis. i) Pursuant to Section 22a·174-22(k) ofthe Regulations, Sprague shall conduct

### NOx emission tests ofthe 

### FM boiler at least once every five years cOImnencmg from the date ofthe mostrecent emissions test for the 

### FM boiler.


### DERC Use. Approved DERCs shall be acquired for the period beginning April 8, 1999, and continuing until the Sprague PFI emissions achieve permanent compliance with the emission standards in Section 22a-1**~4~22(e)** ofthe Regulations or until April 30, 2007, whichever occurs first. Except 

### as directed 

### in paragraph C.1. above, Sprague, W1til April 30, 2007, shall acquire approved DERCs, and document and record the amounts ofNOx emissions and DERCs used by the PFI boiler each month in accordance with the appropriate emission rates and limits in Table 4 below, and shall maintain and provide such records in accordance with the following and Section 22a· 174-4 ofthe Regulations:



### Table 4 Snraeue

- NOx Allowable Emission Rates (IbA1MBtu)

. ,**.~** 

# IUnit 

# I
PFI Boiler 

# IFuel 

# I FUR 

# I I#6 fuel oil 

# I CEM based on a 

# I

N:uural Gas 24-hr**A\le~ge** l'Ox Allo\\':lble Limit 0.25 0.20Sora2ue PaDerboard. Inc. Trading Agreemem and Order No. S11 

### i

c. 

## J a. Estimated DERCs required each month· Before the first day ofeach month. Sprague shall calculate the projected (estimated) worst case DERCs required for the same calendarmonth as follows: (1) For the PFI boilerwhen bumin. natural .as or#6 fuel oil the DERCs (tons) estimated {[(estimated ""'"orst case 

### CEM 24-hour average NOx emission rate for the PFI boiler in IbslM!vlBtu)

- (0.95) x (l'Ox allowable limit 

### in IbsIMMBru»] x (estimated fuel use in M.lvlBru)} + 2000 pOUIlds. (2) AcqJire sufficient approved DERCs no laterthan the first ofeach month to assure compliance for, at aminimwn, that calendarmonth. Excess DERCs from previous months ca.Tl be applied to subsequent months. b. Actual DERCs reauired each month· No later than the twentieth day of each month SDrasrue shall calculate the actual DERCs used in the preceding calendarmonth, as follows: (1) For the PFI boiler. when burning#6 fuel oil or natural gas on each day, detennine whetherthe 24-hour average NOx emission rate is less than or greaterthan the appropriate NOx allowable limit. When the PFIboilerdailyNOx emissionrate (24·hour average) exceeds the NOx allowable limit, calculate the amount ofDERCs used, as follows: PFI boilerDERCs tons acrual = {[(CEM

- recorded NOx 24·hour average emission rate in IbsIM.lvfBru for #6 fuel oil or natural gas for the PFI boiler)

- «0.95) x (appropriate NOx allowable limit in IbsIMMBru»] x (acrual fuel use inMMBtu») + 2000 pounds. Forthe PFI boilerDERC use,**Spr~~e** shall use CEM data averaged on a24- hourbasis to determine the actual NOx emission i2.tes and calculatereauired DERCs when·burning #6fuel oil ornatural gas.
. d.



### e.

f. Sprague shall have sufficient DERCs on hand at the beginning ofevery month. 

### IfSprague does not have sufficient DERCs in its possession priorto use, the DERCs shortfall shall be adjusted upwards, at aminimum, by rwo times (2x). The ERC shortfall is the difference between r.J.:Je approved DERCs on hand and the excess actual. 'Ox emissions calculated in paragraph C.4.b. Sprague shall document and record daily and monthly totals ofall fuel consump.tion and DERCs on hand and used, daily NOx mass emissions for eachboller, and actual CEM NOx emission rates (24-hour average) for the PFI boiler. No laterthan March 1 ofevery year after issuance ofthis Trading Agreement and Order, Sorague shall include with the AnJIual Emission Statement

. provided to the Com..-nissioner, arecord ofeach sale or other tT2.:1sfer, and use ofany and all ofthe DERCs approved witl-}in 2lld subsequent to issuance of this Tradin2 A2Teement and Order until all such DERCs have been used. Sprague shall ilso include actual NOx emissions from each boiler, and the amount ofall DERCs used (includine: serial numbers, 

### ifassi !ffied and aDOroved DERCs e:enerated andlorpurchased rrom other facilities), 2:enerated and/or approvedfor L1'le previous calendar year. Tnese repol1s shan be on a form prescribed by the Commissioner. Should Sprague choose to discontinue the 

### 7SorJ!:!ue P;).oerboard. Inc. Trading Agreemem and Order**~o.** 81 J7



### g. lleneration ofDERCs, Sprague will notify the Commissioner upon aiscontinuance. Sprague shall maintain documentation regarding the number ofDERCs in its possession, created, purchased and used (by senal number ifassi2ned) each month, as well as documentation anesting to the fact that aooroved DERCs used 

### in the ozone season were created during the ozone season. Generator certification shall be sufficient. The ozone season is May 1 to Seotember 30 in any calendaryear. All records shall be maintained in accordance'with Seclion 22a-174-4 and 22a-174-22 ofthe Regulations and shall be provided to the Commissioner

### within thirty (30) days ofreceipt ofaVvTinen request from the Commissioner.
5. !fan established FLER is exceeded Sprague shall purchase and retire DERCs equivalent to the amount ofthe excess ofemissions, plus a 100% premium penalty. Such DERCs shall be equal to the FLER exceedance in LbsIMMBru, multiplied by the total heat input during the period ofnon-compliance divided by 2000 lbs/ton. Ifthe period ofnon-compliance is not known, the time period from the completion ofthe last/previous DEP witnessed stack test until the date'ofcompliance with the FLER is achieved as approved by the Commissioner shall be used. The DEP may require additional upward adjusonent ofthe 100% premium penalty. 

### 6. Allowances. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, Sprague may use NOx allowances, pursuant to Section 22a-174-220) ofthe Regulations to achieve all or aportion ofthe reductions required by Section 22a-174-22 ofthe Regulations,[C?r the PFIboiler

..Any allowances used for compliance 

### with Section 22a-174-22(e) ofthe Regulations for the PFI boiler shall be subject to all resnictions arld/orrequirements applicable to DERCs contained in this Trading Agreement and Order.
7. Each allowance used for compliance with Section 22a-174-22 ofthe Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from Sprague's NOx BudgetProgram compliance account upon suchuse. Allowances shall be considered used for Section 22a-174-22 ofthe Regulations when they are transferred from the facility's compliance account oroverdraft account to a State of ConnecticutNOx allowance retirement account (Account ID CT0000000300 in 

### NATs).
8. Vinta2e Restriction. For the purposes ofcompliance with Section 22a-174-22 ofthe Regulations, DERCsiallowances shall only remain valid for five (5) calendar years from the year ofthe generation/allocation ofsuch DERCsfallow2,.Tlces. DERCs/alJowances older than five (5) calendaryears from their creation/allocation are not valid for llse for compliance with Section 22a-174-22 ofthe Regulations. Norwithstanding the above, DERCs/allowances generated/allocated priorto calendar year 2000 are valid for use for compliance with Section 22a-174-22 ofthe Regulations up to and including December 31, 2004.


### 9. However, ifat any time afterApril 10, 2001 and during the period while this Trading Agreement and Orderremains in effect, Sprague has reason to believe it may be exceeding the FLER limit shown above in paragraph (,3., Sprague shall conducl NOx emissions testing ofthe FM Boileron or before sixty (60) days after the exceedance of the above limitS in accordance with [he following: 

## 8

### Sora2ue Paoerboard. LTlc. Trading Agreemen! and Order 1\0. 

### 8J

### 17

10. I. 

### Sprague shall submit to the Commissioner for his review and wrinen approval an Intent-To-Test 

## em") protocol not Jess than thinv (30) davs 

### pnor to the emissions testing required pursuant to this paragraph and "' paragraph C.3.i ofthis Trading Agreement and Order. The ITT protocol shall include at least:

a. The Deparonent ofEnvironmental Protection's Bureau oLA...irManagement Test Fonn No.1, "Intent to Test";
b. Systettl 6perating parameters indicative ofthe highest opera.ting.rate since the April 10, 2001 stack test, including, but not limited to: steam output rate, temperature and pressure, fuel firing rate, and NOx emissions rate.

ll. 

### The ITTprotocol shall provide that Sprague shall perform testing as specified in Sections 2220-174-5 and 22a-174-22 ofthe Regulations, including operating the FMboiler at not less than ninerypercent (90%) ofits maximwn rated**cap~city** 

### limit orhighest operating rate since its last/previous emissions test., whicheveris higher.

Ill. 

### Sprague shall perform all testing required by paragraph C.3.i in accordance with the approved ITT protocol.

IV. 

### In conducting and perfonning the testing required by paragraph C.3.i and in analyzing the results ofsuch testing, Sprague shall adhere to methods specified in 

### Sections 22a-174-5 and 22a-174-22 ofthe Regulations and as approved by the United States Environmental Protection Agency (HEPA") and the Commissioner.

v. Sorague shall schedule all emissions testing so as to allow the Commissioner to be present during such testing and to independently verify facility operations, airpollution control equipment parameters, and testing procedures. v}. Within 30 days aftercompleting any emissions testing required by this Trading Agreement and Order, Sprague shall submit to the Commissioner a wrinen reportproviding the results ofsuch testing; within 15 days ofanotice from the Commissioner indicating any deficiencies in such report, Sprague shall suomit arevised repor!. Aoprovals. Sprague shall use best efforts to submit to the Conunissioner all documents required by this Trading Agreement and Order in a complete and approvable form. If

### the 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 correct the deficiencies a..T1d resubmit it within the time specified by the Commissioneror, ifno time is specified by the CommiSSIOner, within 30 days ofthe Comrnissioner's noUce ofdeficiencies. 

### In approving any document orother action underthis Trading Agreement and Order, the Comrnissionermay approve the document orotheraction as submined orperformed orwith such conditions or modifications as the Commissioner deems necessary to 

### cany OUt 

### the purposes ofthis**Tra~ing** 

### Agreement and Order. Nothing in this paragraph shall excuse noncomph2..l,ce or delay. 11. Definitions. As used in this Trading Agreement and Order, "Commissioner" means the Commissioner or arepresentative ofthe Commissioner; ··Ozone season'· means the period from May 1 through Seplernber 30 10 

### any given calendar year. The date of 

### 9Soraf.?Ue Paoerboard. 

### Inc. Trading Agreement and Order !'io. 8117

11.

13.



### 14.

15.

16.

17. "issuance" ofthis Trading Agreement and Order is the date the Trading Agreement and Order is deposited in the U.S. mail or personally delivered, whichever is earlier. Dates. 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 Conul11ssioner. The date ofany notice by the Commissioner under this Trading Agreement and Order, including but not limited to notice ofapproval or disapproval of any document or other 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 and Order, the word "day" as used 

### in this Trading A.,.eernent and OrdermeanS calendarday. A:Dydocument or action which is required bythis Trading Agreement and Orderto be submitted orperfoI1I1ed by a date which falls on a Saturday, Stu1day or a Connecticut or federal holiday shall be submined orperfonned by the next day which is not aSaturday, Sundayor Connecticut orfederal holiday. Certification ofdocuments. Any document, including but not limited to any norice, which is required to be submined to the Commissionerunderthis Trading Agreement and Order shall be signed Sprague's chiefexecutive officer or aduly authorized representative ofsuch officer, as those terms are defined in §22a-430·3(b)(2) ofthe Regulations ofConnecticut State Agencies, and bythe individual(s) responsible for actuallyprepa..;ng such docwnent, and Sprague's chiefexecutive officer and each such individual shall certify in writing as follows: "Ihave personally examined and am familiar with the information submitted in this document an.d all anachments thereto, and I certify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the information, thatthe submined information is true, accurate and complete to the best ofmy
. knowled$e and belief. Iunderstand that any false statement made in the submitted informatIOn is punishable as acriminal offense under §53a-157b ofthe Connecticut General Statutes and anyother applicable law." Noncompliance. This Trading Agreement and Order is a final orderofIhe Conunissionerwith 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. False statements. Anyfalse statement in any information submined ptLrsuant to this Trading Agreement and Order is punishable as a criminal offense under §53a·157b of the Connecticut General Statutes and any other applicable law. Notice oftransfer: JiabiJirvofSora!ZUe. Until Sprague has fully complied with this Trading Ag;reement a."d Order, Sprague shall notify the Commissionerin writing no laterthan 15 days aftertransferring all or anyportion ofthe facility, the operations, the site or the business which is the subject ofthis Trading Agreement and Order or after obtaining anew mailing or location address. Sprague's obligations under this Trading Agreement and Order shall not be affected 

### by the passage oftitle to anypropeny to any otherperson ormun.icipality. Commissioner'S Dowers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to instltute any proceeding or take a."y other action to prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties forpast. present, or future violations of law. 

### Ifat any time the Commissionerdetermines that the actions taken by Sprague pursuant to this Trading Agreement and Order have not successfully corrected all violations, fully characteriz.ed the extent or degree ofany pollution, or successful]y abated orprevented pollution, the Commissionermay institute any proceeding to require Sprague to undertake further investigation or further action 10 prevent or abate violations orpollution. 

### 10**Sora~ue** 

### Paoerboard. Inc. Trading Agreement and Order No. 811 

### i

18.


### 19.

20.

21.



### 22.



### 14.



# ,- -,. Spra2Ue's obli2ations under law. Nothing in this Trading Agreement and Order shall relieve Sprague ofotherobligations under applicable federal, state and local Jaw. No assurance bv Commissioner. No provision ofmis Trading Agreement and Order and no actipn or inaction by the Commissioner shall be construed to 

### constilUle an assurance by the Commissioner that the actions taken by Spraguepursuant to Ibis Trading Agreement and Orderwillresultin compliance orprevent or abate pollution. Access to facility. Any

### representative ofthe Deparnnent ofEnvironmental Protection mayenterthe facility withoutpriornotice forthe purposes ofmonitoring and enforcing the actions required orallowedbythis Trading Agreement and Order. No effect on ri2:hts ofotherpersons. This Trading**A~eement** 

### and Order neither creates nor affects any ri!tilts ofpersons ormunicipalities that are nOt 

### panies to this Trading Agreement and Order. No Creation ofProoerrv R.i2hts. This Trading Agreement and Order does not create anypropertyrights with respect to these DERCs. Notice to Commissioner ofchanges. Within 15 days ofthe date Sprague becomes aware ofa change 

### in any information submitted to 

### the Commissioner underthis Trading Agreement and Order, orthat any such information was inaccurate or misleading orthaI any relevant information was omined, Sprague shall submit the correct oromined information to 

### the Commissioner. Notification ofnoncomoliance. In 

### the event that Sprague becomes aware that it did not ormay not comply, ordid not ormay not comply on**ti~e,** 

### with anyrequirement of this Trading Agreement and Order or ofany document requlTed hereunder, Sprague shall immediately notify by telephone the individual identlfied in the next paragraph and shall take all reasonable steps to ensure that any noncompliance or delay is avoided or, ifunavoidable, is mlnimized to the greatest extentpossible. Within five (5) days ofthe initial notice, Sprague shall submit in writing the date, time, and duration ofthe noncomoliance and the reasons for the noncompliance ordelay and propose, for the review'and wrinen approval ofme Commissioner, dates by

### which compliance will be achieved, and Sprague shall comply with a.l"ly dates which maybe approved 

### in writing by the Commissioner. Notifica!lon by Sprague shall not excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposea shall Dot excuse noncompliance ordelay unless specifically so stated by the Commissioner 

### in writing. Submission ofdocuments. Any document required to be submined to the Conunissionerunderthis Trading Agreement and Order shall, unless otherwise specified 

### in this Trading Agreement and Orderorin writing by the Commissioner, be directed to: Mr. 

### Roland 

### L. Severance Jr., 

### PE Department ofEnvironmental Protection Bureau ofAirManagement Emissions and Credit Trading Section 79 Elm Street Haniord, Connecticut 06106-5127

11



### . ,SorJ.l::ue Paoerboard. Inc. 

### Trading Agreement and Order No. Sl17

The undersigned certifies thai he/she is fully 

### authorized to 

### enter into this Trading Agreement and Order and iO 

### legallybind Sprague to the terms and conditions ofthe 

### TradingAgreement and Order.



### By: 

### Signature:
I Type Name: Type Title:**spr~erboard'** 

### lac.

# L~r:f 81?JGf?,r:

Date:

# ~/,<;~,£A--,2",5::..h,--"o,-,,,-==- _

Eniered as afinal 

### Consent Order**oftb~issione** 

### Protection numbered 8117 this 

### rP'\'**d~** f**ep~ent** 

### ofEnvironmental 

### =A4=:r?002.

TOW?, OF SPR.'\GUE L"ND RECORDS !vL"JLED 

### CERTIFIED M."JL, 

### RETUR.N RECEIPT REQUESTED 

### CeI1ified Document No.**'.\D~?:>'.5 YS~"USERSiRSE**  VER.

...N,·iR.'"DING-RLS·-iR.
...DINGOROER.S'.5P R.A**GU~.s** I I**:-Sp;;!~l"teORDcred** Ilfi!;){I 1.1 6-02).dlX



### 12