~~. u '--' Vi:' I..-Vl'lN.t-C'llCLJ.l'

DEPARTMENT OF ENVIRONMENTAL PROTECTION

NORT::::::'.ST !\1UCLEA..~

COM?ANY ,

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Whereas, the Com'nissioner of Environmental ?roteccion ("Commissio:1er")

and the Northeast Nuclear Energy CDmpany ("NNECO") csree thae it is in

the public interest that they work cooperatively to improve the air

quality within the State of Cow,ecticut and that the use of emission

reductio:1 credie ("ERe") t.r:;ding to reduce nitrogen oxide ("NOxUl

emissions will achieve this res~lt in a timely and cost-e:fec~ive ma~~er;

A. At the request ~,d with the agreement of !\~ECO. the Com~issioner

finds the following:

1. NN2CO owns a nuclear powered electrical utility in Waterrord, Co~,ectiCut("Mil1stone").

2. At Millstone, ~~ECO operates eleven (11) emergency generators

for s~andby power for ~he ~hree (3) nuclear reacto~s. These

emergency ge~e~ators are identified in Exhibit 1 a~tached

he~eto and incorporated by reference into this Tradi~g

Agreement and Order.

3. Due to the stringent Nuclear Regulatory Commission ("N~CH)

reauirements for ·diesel generator readiness, NNECO has in the

past. and may be ·required in· the future to perform scheduled

testing of the emergency generators on days for which the

Commissioner has forecast that ozone levels will be "moderate

to u-n.neal chiul H. nunheal thful" or "very u.!1heal t.hful" .

4. Due to the abovementioned testing. u..~der Section 222.-174-

22 (0) (5) of the ~egulations of CO!"...""lecticut State Agencies

("Regulatio:1s") eight of the emergency generators are subject

to Sections 22~-174-22(d) ~hrough (x) of the Regulations

pertaining to the control of NOy. emissions.

5. Three of the emergency generators. the M? Unit 1 Fire Diesel,

the 2mergency 2ngine ~20F" (Cummins) ~~d the Meteorological

Tower oenerator, have maximum rated caoacities be20w three (3)

MM3tu/hr ~,d ootential emlssions of NOy. less than 274 lbs/day. Th~refore these three engines are not subject to the

requirements of Section 22a-17~-22 of the ~e~~l2tions.

6. 3ased on preliminary calculations. it is anticipated that

seven of the emergency generators' emissions will not meet the

applicable ~equirements of Reasonably Available Co~trol

Tecr....''101ogy ("?J..CTH) contained in Section 22a-174-22 of the

D'D.J

Initials· C'\

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(Pri:ll~d on R::ycl:l! P1P~:)

'79 El::l Sll;~t • Hm!ord, CT 06106·5127 . ,. h:: ;J:lld cpo fbt c. c:.

!.~ !q"c1 Opponll~i:, !tr:pIOltT

Date
.. .'.

!'<l\'ECO TR.~.DING .~.GR.EEMENT .~_l\i'D ORDER. NO. 8152

~egulatio~s. Only the M? U~i: 1 Eme~Sency Tu~bine G~ LM1500

Tu=~ine is a~tici?ated to meet its 2??licable ~~CT =2~e.

7. ?u=suant to the De?artment 0: Environrne~tal ?~otection's

"C=edi;:; T:eding for Sources h'i c:h Irre-;-ula.= NOx Z-']i ssions N,

ett2ched here:o and incorpprated by reference in(o this

Trading Ag=eeme~t and Orde~ as Exhibit 2, these emergency

generato=s have ?eak daily NOx emissions greater than t~ree

times the everage caily emissions duri~g the ozone season and

are therefo1e co~sidered sources with irregular NOx emissions.

8. ~~ECO has

"

not yet performed approved Official U.S.

Snvironmental Protection Agency (EPA) Reference Method 7 stack

testing ("stack testing") on the eight (5) generators

("generators"'") subject .to Section 22a-17~-22 of the

Regulations. N~ECO proposes to use assumed Bull Load Emission

Rates ("FLERS") for the' purposes of calculating ERCs \1.''1til

actual NOx emission rates are determined through stack

testing.

9. 3ased on these assumed FLERs, calculatio~s show that NNECO was

required to have thirty one and one tenth peak based ozone

season ERCs (31.1) on hand prior co the 1997 ozone season.

10. In September, 1997, pursuant to Section 22a-17~-22(j} of the

Regulations, h~ECO acquired an initial five tons of approved

ozone season ERCs a."ld ten tons of non-ozone season ERCs. In

December of 1997,' NNECO purchased an additional eighty tons at.

ozone seaso~ ERCs. NNECO intends to continue purchasing

approved ERCs as needed.

12. Aooroved ERCs are defined for the purpose of this order as

those for which the Commissioner has Drovided written

authorization for use in comoliance ~lth Section 22a-17~-22 of

the Regulations.

3. The Commissioner, in accordance with the provisions of this trading

agreement and order, and pursuant to § 22a·274-22 (j) of the

Regulations hereby allows NNECO to comply with § 22a-174-22 of the

Regulations through use of ERC erading referenced in Section A,

herein, to achieve the nitrogen oX~de emission reduction required

by Section 22a-174-22 (a) (2) of the Regulations.

C. With the agreement of NNECO, the Commissioner, ~cting ~"lder

Co!"'.necticut General Statutes Sections 22a-6, 22a-171, 22a-174, 22a176, and 22a-177, orders NNECO as follows:

1. Upon issu~,ce of this trading agreement and order and ~'til

approved stack testing is completed, the results of such

testing are approved and new ?LERs are established pursuant to

paragraph C.~., a."ld provided all conditio~s of this order are

met, NNECO shall comply during operation of each generator.

with the FLERs shown in Table 1 as follows:

Initials~~ -2-
KNE:CO TP":-DING .~.GRE:E:!"1:::NT .J:U\IU O~DE?. NO. 8152

'!e.ble

f\"NECO - TLERs e.nd NOx RAC'!

"

!:=.is& ion Rates

Yo"" Eee.o; NOx MeT

Input TLER 0'

0' Rate

GEKE?J.TOR FO:::!. , {~:::u!h=J (S!EEp-E=J (g!3Ep-?::-J

'-? U:"li::: 1 !:ne=sency Diesel I Diesel I " I 12.2 I a Colt ?-M 36TD3-1!S Diesel

M? U:lit 1 :::i.le=gency 'r.li=:;'i:Je I

Ke=osene I 82 0.9 I 0,'

G::: LM1SOO '!"'u=:,ine , l!:l/Ml'Etu l:,!MM3tu

MP Unit 2 Eme=ge:1cy ~iesel

Colt F'-M 361'03-1/8 D':'esel Diesel 27.58 10.96 8

(12U)

M? Unit 2 Eme::rgency Diesel

Colt F-M 3STD3-1!S Diesel Diesel 27.58 10.% 8

(13U)

M' Unit 3 .E:me=gency Diesel Diesel 50.'; I 10.17 I 8 Colt ?C2 Diesel (A)

M? Unit 3 .E:me:-gency Diesel I Diesel I 50 ..... I 10.17 I 8 Colt pe2 Diesel (3)

Stacion Blackout Diesel Diesel 25.76 I 15.29 B :::lect.ro-Motive 2!'f~ Gene:-aco=

Station Secu::rity Diesel Diesel 3.5 12.8 8 Curn.-nins VT 1710GS!GC

2. !Il"NECO shall complete. approved stack te.sting!~~n the generato::rs by DeCeii'De::r 32, 199B..: "'. -; '.- ,~!J .. , .:

3. At least thirty (30) days prior to any emission test, ~es?ondent shall submit to the Commissioner, for his review ~nd written a~~roval, an Intent-to-Test (ITT) ~rotocol for any

emission testlng. The ITT protocol shall include, but not

necessa::rily be limiced to. the following:

a. Compl~ted 3u::reau of Air Management Stack Test Form No.

1, Intent to Test;

D. Desc~iption of all test methodologies to be used;

c. Description of all operational and control equipment

parameters which will be measured, monitored and

::recorded during the emission test ~~d the time interval du~ing which they will be monito::red. "

The IT'!' p~otocol shall 'require that ~espo~dent perform

all emissions testing ~~der worst case conditions, which

shall include operating each generator at no less than

ninety percent (90%) of its maximum operating capacity;

d. Within sixty (60) days after the ITT protocol is

approved in writing by the Commissioner, ~espondent

shall 'perform emissions testing of the generators to

Initials -3-
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NN:::CO

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TR~~ING AG~::::::Y.:::NT ~WD ORDE~ NO. 8152

de~e~,i~e com~liance ~ith Sectio~ 22a-17~-22 of the

:;I ••..

__c'·,,-~..;o"s· ,",_c:. __ .0 , -

~es?o~ce~t shall pe~form all emissio~ testing ~equi=ed

~y this 7=ading Agreeme~t a~d Oreer i~ acco=da~ce ~ith

the approved ITT protocol;

In concucting, performing and ana2yzing the results of

the emission testing required by this Trading Agreement

and Order, Resoondent shall adhere to methods aooravec

by th~IUnited States Environmental Protection Agency

(" 2?J:» and the De9artment of 2r.vironment.al Protection

("Department" I;

Respondent shall pchedule any emission testing so as to

allow representatives of the Department~to be present

during such testing, and shall notify the Department at

least fifteen (IS) days prior to said testing and shall

allow such reoresentatives to conduct orocedural and

operational audits; .

4. Upo~ the completion of approved stack testing and the approval

of such stack testing results, a new ?LE~ shall be established

for each generator. ?ollowing the Commissioner's review ~~d

written approval of these new ?LERs, the new FLERs will be

attached hereto ~~d incorporated by reference into this

Trading Agreement ~~d Order as ey~~ibit 3. Upon the approval

of the Co~"issioner ~~d ~~til May 1, 1999, h~ECO shall comply during operation of each generator with the FLERs listed in

ex...rlibit 3.

5. P1ter J~~e 21, 1997, NhSCO shall have in its possession

approved ERCs ~,d shall document ~,d record the amou-~ts of all

fuel used by each generator each day ~,d the number of ERCs

used for the ozone se~son (May 1 to September 30 of each year)

and non-ozone season (the remainder of the year), and shall

maintain and orovide such records in accordance wi'th the

following and· Section 22a-174-4 of the Regulations, ~~til May

1, 1999, and shall:

a. Have in its Dossession sufficient 2DDroved ERCs for the

current day/-based on the following·calcu2ations

(described also in Ey_~ibit 2);

At all times (mass calculation):

ERCs (in tons) = (FLER (g/3hp-r~)

(lpO~,d/~54g)) +

[actual hours operated x Hp rating x

(0.95 x NOx RP.CT rate (g/3hp-~r») y.

2000 po\l.Tlds/ton

Duri~g the ozone season only (?ear. cay calculation):

the maximu actual excess NOy. emissions (in lbs) on any

of the days projected by the Co~~issioner to be

"mode=ate to ~~ealthful,~ "~n_~ealth:ul,n or "very \l.n_~ealthful,n divided by 3 and then divided by 13 (with

the result in tons) :

ERCs (in tons) z [(Maximum excess NOx in lbs) + 3) +

[13 lbs/day/ton)

Inicials - 4 - Dace
!\c"NECO

c.

d.

e.

f.

g.

h.

Adj~s~ upwards ~y 100% the ~RCs required if E~Cs are not i~ NN~CO's possession prior to use. T~e ~~C s~ortfall

after co~?letio~ of stack testi~s s~all also be adjusted ~p~arcs ~y 100\ if the ~RCs calc~lateo with the :L~Rs

assumee ~~oer paragraph C.l. of this Trading A;reement

and Oreer result in an ~,derestimation; ~.

As described in Exhibit 2 of this order, to the extent

that E~Cs used to offset on a peak cay basis durins the

ozone season exceed the total mass excess emissions, remai~ln9 2RCs may be used in the non-ozone season in

the Same or subsequent years until May 1, 1999;

Docume~t and record daily fuel use, excess NOx emissions

and, during the ozone season, the ozone classification

as forecasted by the Commissioner on the previous day;

No later than 30 days after the execution of this order

for 1997 and no later than March 1, 1999 and 2000,

include with its ar_~ual emissions report to the

Commissioner, ERCs used (calculated as described in

section C.S.a. above), by ozone and non-ozone seasons,

for the previous calendar year;

Retain records and supporting documentation as described

in this section for a minimum of five years, commencing

on the date such records are crea~edi

Maintain documentation to attest to the fact that ERes

used curing the ozone season were generated during the

ozone season. The ozone season is May 1 to September 30

in ~'y calendar year. Generator certification of this

fact shall be sufficient; and

Provide the records specified above to the Commissioner

within thirty (30) days of receipt of a written request

from the Commissioner.

6. On or before September 1, 199B, NhSCO shall submit a report

indicating how the emergency generators at Millstone shall

comply with § 22a-ll<;-22 of the Regulations after May 1, 1999.

7. Definitions. As used in this order, "CorT'.missioner" mea.T'lS the

Commissioner of 2nvironmental Protection or an agent of the

Commissioner. "OZO::le season" means the period bet.....een May 1 a.~d September 30 in any given calendar year.

8. Notification of noncompliance. In the event that NNECO

becomes aware that it did not or may not comply, or did not or

may not comply on time, with any requirement of this Trading

Order or of any document reauired here~~der, NNECO shall im~ediately notify the Co~~{ssioner a.~d shall take all

reasonable steps to ensure that any noncompliance or delay is

avoided or, if unavoidable, is minimized to the greatest exten~ possible. In so notifying the Co~~issioner, ~~ECO

shall stat~ in ~riting the reasons for the noncompliance or

delay and propose, fo+ the review and written approval of the

Commissioner, dates by which compliance shall be achieved, ~~d

~~lECO shall comply with any dates which may be ap~roved in

writing by the Com~issioner. Notification by ~~ECO shall not

Initials -5- Date f, 13:>\%
:;: . Cen;ificcticn ,.,f ciocuments·,

TR~~!NG AG~~SMS~l ?~U O~2R NO. 8152

excuse no~com~liance 0= delay, and the Commissio~e~'s approval

of any com?liance dates proposed shall not e>:cuse

~onc?mp~ia~ce.or d~l~y unless specifically so stated ~y t~e

CommlSSlone= In wrltlng.

..... 'ny c·oc·'-e ,-u, _.. ••

nc'_ ";: ...""_.. .. ..,5 ;...,,- ........... .....0'

limited to any notice. which \s =equi=ed to ~e submitted to

the Commissioner ~,der this Tracing Agreement and Order shall

be signed by the responsible corporate officer of ~espondent

or a duly aUthorized representative of such officer, as those

terms a=e c,efined in Section 22a-00-3 (b) (2) of the

?eg~lations of Co~~ecticut State Agencies, and by the i~dividual or individuals responsible for actually prep~ring

such document, each of whom shall examine and be familiar with

the information submitted in the document and all attachments

thereto, ~'d shall make inquiry of those individuals

responsible for obtaining the information to dete=mine that

the information is true. accurate, and complete, and each of

whom shall certify in writing as follows:

"I have personally examined and am familiar with the

information submitted in this document ~~d all atcachments

chereco, ~"d I certify thaC based on reasonable investigation.

including my inquiry of t~ose individuals responsible for

obtaining the informacion, che submi~ced information is true,

accurate ~,d complece co ~he best of my ~.owledge and belief.

I ~~derst~.d that any false statement made in ~he submi~ted

information may be p~~ishable as a criminal offense under

Section 22a-175 of the Connecticut General Statutes or, in

accordance with Section 22a-6 of the Co~~ecticut General

Statutes, ~,der Section 53a-157b of the Connecticut General

Statutes, ~,d in accordance with any other applicable

statute. M

10. Final Aareement and Order. This Trading Order is the final

agreement ~.d order by and between the Commissioner and N~~CO

with resoect to the matters addressed herein, ~~d shall not be

modified-without the written agreement of both parties.

11. False statements, k~y false statement in any information

submitted pursu~~t to this Trading Order may be punishable as

a criminal offense ~,der Section 22a-175 of the Co~~ecticut

General Statutes or, in accordance with Section 22a-6, under

Section 53a-157b of the Co~~ecticut General Statutes.

22. Notice of transfer; liabilitv of Respondent and ochers. Until

~espondent has fully complied with this Consent Order,

Respondent shall notify the Commissioner in writing no later

than fifteen (25) days after transferring all or ~~y portion

of the facility, the operations, the sice or the business

which are the subject of this order, or obtaining 2 new

mailing or location addre·ss. ;_~y license transfer shall be

conducted in accordance with Section 22a-50 of the Cop_~ecticut

General Statutes. Respondent's obligations ~~cier this Consent

Order shall not be affected by the passage of citle to any

property to any other person or m~~icipality. Any future

owner of the site may be subject to the issuance of an order

from the Commissioner.

. . f);V. In~tlals -6-
NN=:CO T?....:l.DING .!:..G~~~"'i=:NT _~_""'D O?.D=:R NO. 8152

13. CQmmiss Qn~~'5 ~owe~~ No~hi~S i~ ~~is Traci~g Order shall

affec~ he Co~~issioner's authority to i~s~it~~e any

proceed ~g or take a~y ot~e= ac~io~ to prevent or abate

violations 0: law, orevent or a~a~e ~oll~:ion, recover costs c~c natural resource ccwages, anc to· impose pe~a!ties for

violatio~s 0: law which are will:ul or crimi~all~ neclioenc or _'0- ~n~c~ •• _ •• ::, ~e~;'~'es ••__ ,-_ ...

~-"e c::... "0"- ._ '- -,~QQn __• s-ec,f,c"'y :' _~_ '"'__ :'_-~ov;-o·.o·-;~ _ _ _ ••

this Trading Order, including but not limited to viola~ions of

any permit issued by the Commissioner. I: a~ any time the Commissione~ determines that the actions taken by ~~~CO

~ursuant tp1this Trading Order have not fully achieved

complio!.nce,"...'ith Section 22a-17';-22 of the ~eSulations, the

Commissioner may institute any independent proceeding to

require ~~2CO to ~~dertake fur~her investigation or further

action.

- H. mr'"ECO's oblioations under liiW, Nothing in this Trading Order

shall relieve ~~ECO of other obligations under applicable

federal, state ~,d local law.

15. Access to records and faci'itv, p~,y representative of the

Departmen~ of Environmental Protection may enter the facility

and inspect ~,d copy records within normal business hours

without prio~ notice for the purposes of monitoring and

enforcing the actions requi=ed or allowed by this Trading

Order. P~,y representative of the Department shall comply with

Respondent's visitor security procedures. p~y records

maintained pursuant to this Trading Agreement and Order shall

be made immediately available to ~~y representative of the

Department upon request at the facility.

16. No ef~ect 00 richts of other persons, This Trading Order

shall neither create nor affect ~~y rights of persons who or

municipalities which are DOt parties to this Trading Order.

17. Notice to Commissioner of chancres, Within fifteen (15) days

of the date NNECG becomes aware of a change in ~~y information

submitted to the Commissioner ~,der this Trading Order, or

that any such information was inaccurate or misleading or that

any relevant information was omitted, NNECO shall submit the

correct or omitted information to the Commissioner.

18. Submission of documents. >~V document re~~ired to be

submitted to the Com~issioner ~,der this Trading Order shall,

unless otherwise specified in writing by the Commissioner, be

directed to:

Marc Sim'Oson

De'Oartment of Environmental Protection

3ureau of Air Management

Engineering and Enforcement Division

79 Elm Street

~artford, Co~~ecticut 06105

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NNE CO TP~~ING AG~EEMENr ~J~ O~DErt NO. 8152

Work Services

~~~co consents to the issuance of this Trading O~der without further

notice The undersigned certifies that he/she is fully authorized to

enter nro this Trading Order and to legally bind ~~~co to the terms and

condit ons of the Tracing Order.

Northeast Nuclear Snergy Company

f'vo\"Q; 5igna t ure :_~-''>''''-_\_<::!,.:==__=-== _

Type Name: __",=----.:C,,_-=R==o=t=h=e=n=-- _

Type Title: Vice President-Nuclear

De te ,_.;:.b=-I3::::c:..;l,--,q.l..BL-~ _

Commissioner of Snvironmental

1998.

CITY OF WAT2~FOP~ ~~v RECORDS

MAILED CERTIFIED ~~.IL,

RETURN RECEIPT REQUESTED

Certified Document

Arthur J: R~cque, Jr. V Commlsslone"

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