# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONME. TAL PROTECTION

In the matter of 

### The State ofConnecticut and Middletown Power

## LLe



# , ) ) ) ) ) 

### Trading Agreement and OrderNo. 82l5A



### ._.' Whereas, the Commissioner ofEnvironmental Protection ("Commissioner") and Middletown PowerLLC ("MP") agree that it is in the public interest that they work cooperatively to improve the airquality within the State ofConnecticut and that the use of discrete emission reduction credit ("DERC") trading to reduce nitrogen oxide (" Ox") emissions will achieve this result in a timely and cost-effective manner. A. At the request and with the agreement ofMP, the Commissionerfinds the 

### following: 1. This Trading Agreement and Order supercedes Trading Agreement and Order 8215 issued on March 22, 2002. 2. MP 

### is an exempt wholesale electric generating company with its principal place of business in Sewickley, Pennsylvania. On December 

### IS, 1999:tv1P purchased from The ConnecticutLight and Power Company and now owns one fossil fuel-fired electric generating station, Middletown Station, at 1866 River Road, Middletown, Connecticut ("facility").

. 3. At the facility, NRG Middletown Operations Inc. operates fuel burning equipment, consisting ofMiddletown Station Unit4, a 400 megawatt tangentially-fired boiler, 

### Connecticut Registration Number 104-0003 ("boiler"), which is subject to Subsection 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations"). The boilerhas the dual capacity to operate on No.6 fuel oil and No.2 fuel oil. No.2 fuel oil is used primarily as an ignition fuel as pan ofthe stan-up procedure. A continuous emissions monitor ("CEM") cenified to 40 Code ofFederal Regulations ("CFR") Pan 75, measures NOx emissions from the boiler. 4. The boiler sometimes exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations. 5. To reduce excess NOx emissions MP has represented that it monitors and controls the combustion process ofthe boiler so that emissions frequently can be kepI 

### below the NO. emission limitations established by Section 22a-174-22(e) ofthe Regulations.
6. Pursuant to Section 22a-174-220) ofthe Regulations, during the non-ozone season,1'v1P intends both to acquire and generate approved DERCs until September (Prinled on Recycled hper) 79 Elm Sueet • HUlford. CT 06106·5127

....... blip:lIdep.SIl.1 e.el.llS An EqJOI2L OppoTlll.nirJi EmploJiu /MiddlelOwn PowerLLC Trading Agreement and OrderNo. 8215A



# '-)



# -

"-_. 30,2004 

### for the boiler at the facility. Pursuant to Section 22a-174-22U) ofthe Regulations, during the ozone season, 

### lv1P intends both to acquire and generate approved Budget discrete emission reduction credits ("BDERCs") until September 

### 30, 2004 for the boiler at the facility. 7. When properly documented 

### by:M:P, and approved 

### by the Commissioner, the emission 

### reductionsidentified above, and as computed in accordance with !.he terms ofthis Trading Agreement and Order, 

### will conform to the requirements.of 

### Section 22a-174-220)(3) ofthe Regulations. Specifically, the reductions will be: Real because they will result in areduction ofactual emissions released into the air. net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions will be properly measured. recorded and reponed. Quantifiable because they are based on CElvfdata as applied in an appropriate reliable and replicable protocol, providing the rate and total mass amount ofreduction. Surplus because they are not required by any Connecticut statute or regulation mandated by acurrent State Implementation Plan ("SIP"), and are not currently relied upon in any applicable attainment plan, any reasonable further progress plan ormilestone demonstration. Pennanent because the advanced control system is in place and operating, and an appropriate tracking system is in place to monitor all datarequired to 'verify and quantify the creation ofDERCs. Enforceable because theDERCs are approved by the Commissioner retrospectively afterthe submission by MP ofareport that documents their creation. 8. The emissions trading baselines ("baseline emission rate") and the allowable emission limits for the boilerin pounds permillion British thermal units ("lbsJM:MBlu") ofheat input when operating on fuel oil are provided on the following table 1:

2

### Middletown PowerLLC Trading Agreement and Order No. 8215A
Table I NOx Allowable Limits and Baseline Emission Rate in IbsIMMBtu Emission Fuel Heat Input Emissions AlIowableIBaseline emission Unit MMBtulhr Test nile IbsIMMBtu Boiler4 No.6 I 4,684 CEM 0.25 PermitNo. No.2, CEM 0.17 104-0003 

### 9. $taning on October I, 2003, and during the period from October 1 through April 30, inclusive, each yearuntil September30, 2004, MP may only obtain approval of actual reductions in NOx emissions, generated by operating the boiler at arate that is below 0.15 lbslMM:Btu during the non-ozone season on No.6 fuel oil and No.2 fuel oil. 10. The Commissioner, in accordance with the provisions ofTracting Agreement and Order 8215 and Addendum I, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, previously approved the non-ozone season NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers (if assignedby the Depanment) to these previously approved reductions ofNOx emissions are provided in Table 2 ofthis Trading Agreement and Order. DERCs are subject to the vintage restrictions in this Trading Agreement and Order. Dates that after which the unused DERCs will 

### no longerbe eligible for use as aresult of the vintage restrictions are provided in Table 2 ofthis Trading Agreement and Orderin the expiration date column. Table 2 dNO DERC 

### prevlOusly approve 

### x S Year of Non·ozone season NOx DERC Tons Expiration Generation serial numbers Date 

### 1999 Cf99/8215(DC)Noxnozl-7 7 12131/04 2000 

## I CTOO/8215(DC)Noxnozl-64 64 12131/04 2001 ICTOI/8215(DC)Noxnozl-16 16 12131/04

B. The Corrunissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(d)(3) ofthe Regulations, hereby allows MP to:
1. 

### Comply with Section 22a-174-22(d)(l) ofthe Regulations through use ofBDERC and DERC trading; 2. Ozone season BDERCs may be generated and used in accordance with this Trading Agreement and Order; and 3

### MiddletOwn PowerLLC Trading Agreement and OrderNo. 8215A



### ;""'\ 

### <..J 3. Upon sufficient documentation as prescribed in" this Trading Agreement and Order, generate additional BDERCs and DERCs. Upon issuance ofan addendum to this Trading Agreement and Orderthe Commissionermay approve the generation of additional BDERCs and DERCs by MP retrospectively. Approved BDERCs and 

# , . 

### DERCs generated**b~** 1\.1P 

### may be 

### heldby MP ortransferred to other persons In 

### accordance with this Trading Agreement and Order. C. With the agreement ofMP, the Commissioner, acting under Sections 22a-6, 22a-171, 22a·174, 22a-176, and 22a-177 ofthe Connecticut General Statutes, hereby orders MP as follows: 1. Upon issuance ofthis Trading Agreement and Order, MP may generate approved BDERCs and DERCs as allowed underthis Trading Agreement and Order until September30. 2004. 2. Upon issuance ofthis Trading Agreement and Order, at the facility, rv1P 

### shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading. Until MP achieves permanent compliance with the emission standard in Section 22a-174- 22(e) ofthe regulation orby September30,2004, whicheveroccurs earlier:

a. rv1P 

### shall use approved DERCs and BDERCs as required underthis Trading Agreement and Order; and b. MP shall have in its possession sufficient approved BDERCs and DERCs to meet applicable NOx emission limits as allowed underthis Trading Agreement and Order. 3. DERC e:eneration.

a. Until September30, 2004, when the boilerhas daily NOx emissions below the applicable baseline emission rate(s), orthe proportioned baseline emission rate, orwhen the boiler has seasonal NOx emissions below 0.15 Ibs/J\.1!v1Bru during the non--ozone season staning on October 1, 2003, MP shall calculate the amount ofDERCs generated as follows: DERCs (Ions) 

### = {[Total heat input' ofall fuels in MMBtu x (proportioned baseline emission rate2 ) - 

### (the CEM-recorded NOx emission rate'))].,. 2060 Ibslton) x (0.90).'

I Heat input shall be. caJcul,ued using the lower ofCEM-recorded dat:l. or actual fuel usage data in MMBtu perunit offuel combusted.

4

/

### Middletown PowerLLC Trading Agreement and OrderNo. 8215A

;: This rate shall be calculated by 1) multiplying the heat input ofeach fuel combusled by the baseline emission rate(s) for such fuel; 2) summing those products; and 3) dividing the sum by the lotal heat input. Ifthe boiler is operating exclusively on one fuel, lvtP may replace the proponioned baseline emission rate with the applicable baseline emission rale. for thaI fueL Starting on October 1. 2003, the baseline emission rale during the non-ozone season shall be 0.15 IbslMJvffitu. I 3 During the'tlzone season until September 30. 2()(')4, and during the non-ozone season unEiI October 1.2003. this rate shall be calculated pursuant to the methodology described in 40 Code ofFederal Regulations Part 75 and weighted pursuant to the Department's policy statement entitled "Guidance for Calculation ofEmission Reduction Credits and Determination ofCompliance with NOx RACT for Sources Subject to 40 CFR 75 (Acid Rain Sources)" dated December 18. 1998 which is attached to and incorporated by reference into this Trading Agreement and Orderas partofAttachment 1.

4 An additional ten (10) percentofall DERes (tons) generated by the boiler shall**al~** be retireq by the facility and permanently removed from all calculations on a daily basis to assure a benefit to the environment Starting on October 1. 2003, during the non-ozone season, the ten percentdiscount shall be retired by the facility and permanently removed from all calculations on a seasonal basis to assure a benefit to the environment 

# ,..-. 'J b. Durin2 the ozone season until Seotember 30. 2004 and durinQ': the non-ozone season until October 1,2003: Forpurposes ofcalculating the number of BDERCs and DERCs generated from the boiler at the faCility, 

### 1v1P shall use the baseline emission rates for the boiler, orthe proportionedbaseline emission rate set forth in footnote 2 ofparagraph C.3.a. of this Trading Agreement and Order, when simultaneously operating on more than one fueL 

### :MP shall use the above referenced baseline emission rate(s) when calculating the proportionedbaseline emission rate.

c. Startim;?: on October L 2003 and until September 30. 2004 durinQ': the nonozone season: Forpurposes ofgenerating DERCs from the boilerat the facility,:MP shall use 0.15Ibs/M1v1Bru ofheatinput when operating on No. 6 fuel oil and/orNo.2 fuel oil as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (tons) generated by the boiler shall 

### be retired by the facility andpennanenQy removed from all calculations on a non-ozone season basis to assure a benefit to the environment. d. Non-ozone Season Restrictions. Non-ozone season NOx DERCs generated by 

### MP shall be created and approved in accordance with this Trading Agreement and Order, and shall remain valid until they are used oruntil their vintage expiration date, or until September30,2004, whichever occurs first.

5



### .. 

# .Middletown PowerLLC Trading Agreement and 

### Order o. 8215A

c. During the ozone season until September 30.2004 and durin2 the non-ozone season until October 1. 2003: In requesting approval ofDERCs generated by the boiler, 

### :MP shall provide documentation containing a sample spreadsheet with calculation fannulas used to detennine reported numbers; monthly operating rcpons ofactual fuel usage including the fuel BTU content, number of 

### gallons, andEubic feet used for each fuel type; daily 

### M::MBru foreach fuel type and actual heat input based upon CEM-recorded data; 

### daily weighted and unweighted actual NOx. emission rates (24-hour average); and DERCs generated using the baseline emission rate(s). orthe proponioned baseline emission rate set forth in footnote 2 ofparagraph C.3.a. ofthis Trading Agreement and Order. nel ofthe len (10) percent environmental discount. 

# ," 'J f. Durin!! the non-ozone season startimz on October 1. 2003 and until September 

### 30.2004: In requesting approval ofDERCs generated by the boiler, MP shall provide documentation containing a sample spreadsheet with calculation formulas used to determine reported numbers; non-Olone season operating repons ofactual fuel usage including the fuel BTU content, number ofgallons, and cubic feet used for each fuel type; non-Olone season MMBtu for each fuel type and actual heat input based upon CEM-recorded data; non-ozone season actual 

### NOx emission rates (seven month average); and DERCs generated using the 0.15 lbs/lvfMBtu baseline emission fate(s), net ofthe applicable environmental discount.

:. • J \

## ....... 4. When the daily or**non-ozo~e** season CE..M-recorded NOx emission rate is used to calculate DERCs generated by the boiler, 

### MP shall not include missing data calculatedin accordance with any missing data substitution procedures, including those allowed under Section 22a-174-22b ofthe Regulations and 40 CFR Part 75. 5. Upon sufficient documentation, 

### as detennined by the Commissioner, that MP has met the requirements ofthis Trading Agreement and Order, the Commissionermay provide written approval ofDERCs generated by

### MP retrospectively. Requests for approval ofall subsequentDERCs created shall be submitted in writing to the Commissioner. Such requests shall be compiled on a monthly basis and shall be submitted at least on an annual basis. Approved DERCs generated by 

### :MP under this Trading Agreement and Or:dermay be held ortransferred to otherpersons. 6. DERC use. Until September 30, 2004, before the first day ofeach month, and staning on October I, 2003 also before the first day ofeach non-Olone season, MP should have in its possession sufficient approved DERCs for the boilerbased on the following:

6Middletown PowerLLC Trading Agreement and OrderNo. 8215A

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

### = {[estimated worst case NOx emission rate in

, IbslMMBtu

- «0.95) x (NOx allowable emission limit 

## , orproportionedemission rate calculated pursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu))J x (Estimated fuel use in MMBtu)) t 2000 pounds/tons. No laterthan the twentieth day ofeach month, 

### :MP shall calculate and permanently retire DERCs used in the preceding calendarmonth, as follows: (i) Forthe boileron each day, detennine whether the 24-hour average NOx emission rate· is less than the baseline emission rate orgreaterthan the NOx allowable emission limit. (ii) When the boilerhas adaily NOx emission rate (24-hour average) exceeding the NOx allowable emission limit, calculate me amount ofDERCs used, as follows:

b. Actual DERCs (tons) 

### = {[(CEM-recorded NOx daily average emission rate in IbsIMMBtu*)

- «0.95) x (NOx allowable emission limit orproportionedemission rate calculatedpursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbsIMMBtu))J x (actual fuel use in MMBtu)j 

### +2000 pounds/tons. *This rate shall be calculated pursuant to the methodology described in 40 CFR Pan 75.

(iii) With the exception ofBDERCs, excess DERCs from previous months can be applied to subsequent months. BDERCs are subject to the limitations set forth in paragraph C.7. ofthis Trading Agreement and Order. During the non-ozone season starting on October 1, 2003: In addition to meeting the 24-houremission limit in Table 22-1 ofSection 22a-174-22 ofthe Regulations. meet anon-ozone season emission limit of O.151bslM:MBtu. Prior to October 1, 2003:MP shall estimate and acquire the amount ofDERCs or allowances required for such non-ozone season 7Middletown PowerLLC 

### Trading Agreement and Order No. 8215A

,("'\ ;-' .1 needed to comply with Section 22a-174-22(c)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in 

### 1vfMBtu from October 1 through April 30 x (lowerofthe estimated seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in IbsIM:MBtu during October 1 through April 30)

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

### No laterthan May 31, 2004, in addition to the DERCs retired in paragraph C.6.a., calculate and permanently retire DERCs used in the preceding non-Olone 

### season as follows: Actual DERCs (tons);;;; [Actual fuel use in 1vfMBtu from October 1 through April 30 X 

### (lowerofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission 

### limit in 

### IbsJM:.N1Btu during October 1 through April 30)- (0.95 x 0.15IbslMMlltu)J 2000 pounds/ton.



### c. When the daily ornon-Olone season CEM-recorded NOx emission rate is used to calculate DERCs used by the boiler, 

### :MP shall include missing data calculatedin accordance with missing data substitution procedures under40 

### CFR Pan 75. 7. BDERCs shall only be used by otherNOx Budget Program sources located in Connecticut. BDERCs shall only be used to offset ozone season excess emissions, and shall not be used for compliance during the non-Olone season. BDERCs generated during agiven year shall only be used during the following ozone season. BDERCs are subject to all DERC requirements set forth in this Trading Agreement and Orderexcept for those requirements pertaining solely to non-Olone season DERCs and as otherwise may be provided. 8. MP shall make and keep records for the boilerof: daily fuel use and fuel type; excess NOx emissions; daily NOx mass emissions, the actual NOx emission rates (24-hour average) and staning on October I, 2003 non-Olone season NOx emission rates, number ofoperating hours perday, the number ofinvalid data hours ofthe total operating hours perday; the number ofDERCs in its possession, created, purchased and used (by serial numberifassigned) each month in accordance with the appropriate emission rates and limits in this Trading Agreement and Order; the number ofDERCs used during the Olone season and non-alone season (the remainder ofthe year); as well as documentation attesting to the fact that approved DERCs used during the ozone 8



## ,

### Middletown PowerLLC Trading Agreement and OrderNo. 8215A

season were generated during the ozone season. Generatorcertification ofthis fact shall be sufficient. MP shall maintain and submit such records in accordance with Section 22a-174-22 ofthe Regulations. 9. Record Keeping. MP shall retain records and supporting documentation as described in this Trading Agreemeiu and Orderfor a minimum offive years, commencing on the 

## , date such records were created. MP shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner. 10. Annual Emission Statement. No laterthan March 1 ofevery year afterissuance ofthis Trading Agreement and Order, MP shall include with the Annual Emission Statement provided to the Commissioner, arecord ofeach sale orothertransfer, and use ofany and all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longerin MP's possession. MP shall also include actual NOx emissions from the boiler and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/orpurchased from other facilities), generated and/or approved for the

.......") previous calendar year. Thesereports shall be on afonn prescribed by the -"" Commissioner and shall be 

### in monthly increments. Should MP choose to discontinue the generation ofDERCs, MP will notify the Commissionerupon discontinuance. MP 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. MP shall provide the records specified above to 

### the Commissioner within thirt:t (30) days ofreceiptofa wrinen request from the Commissioner. 11. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, 

### :tv1P may use NOx allowances, pursuant to 

### Section 22a-174-22(j) ofthe Regulations to 

### achieve all or aportion ofthe reductions requiredby Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe 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 22a174-22 ofthe Regulations shall 

### be equivalentto one discrete emission reduction credit and shall 

### be deducted from MP's NOx BudgetProgramcompliance account upon such use. Allowances shall be 

### considered used for compliance with Section 22a-174-22 of the Regulations when they are transferred from the facility's compliance account or overdraft account to a State ofConnecticut NOx allowance retirement account, account II) 

### CTOO00000300 in the NOx Allowance Tracking System. 12. DERC Doublin!!. At a minimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in MP's possession for use prior to the first day ofeach month or 9Middletown PowerLLC 

### Trading Agreement and Order No. 8215A applicable season. However, based on the gravity ofthe noncompliance, the Commissionermay require additional upward adjustment. 

### 13. Vinla2e Restriction. Forthe purposes ofcompliance with Section 22a·174-22 

### ofthe Regulations, DERCsiallowances shall only remain valid for five (5) calendaryears from the year ofthe generation/allocation ofsuch DERCs/allowances. DERCs/allowances 

## , generated/allocated more than five (5) calendar years ago are not valid for use for 

### compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above the DERCs/allowances generated/allocated prior to calendar year 2000 shall be valid for use until December 31, 2004. 14. Extension. No laterthan September 30,2004, with respect to the boiler, MP shall comply with the requirements ofSubdivision 22a-174-22(d)(I) ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Commissionermay grant a wrinen extension of this Trading Agreement and Order. 15. Future Comoliance Repon. On orbefore March 31, 2004 MP shall submit arepon indicating how the facility shall comply with Section 22a-174-22 ofthe Regulations with respect to the boiler on and after September 30, 2004. 16. Full compliance. MP shall not be considered in full compliance with this Trading Agreement an·d Orderuntil all actions required by this Trading Agreement and Order have been completed as approved and to the Commissioner's satisfaction. 17. Approvals. 

### "MP shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Orderin a complete and approvable fonn. 

### If the Commissionernotifies MP that any document orother action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and MP shall correct the deficiencies and resubmit it within the time specified by the Commissioner or, ifno time is specifiedby the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action under this Trading Agreement and Order, the Commissionermay approve the document or otheraction as submitted orperformed or with such conditions or modifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay. 18. Definitions. As used in this Trading Agreement and Order, "ApprovedDERCs" are those for which the Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the 

## <....... Commissioner or a representative ofthe Commissioner; "Ozone season" means the period from May 1 through September 30 in any given calendar year. The date of 10

### Middletown PowerLLC Trading Agreement and 

### OrderNo. 82151\ "issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. 19. 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 Commissioner. The dine ofany notice by the CommissionerunderTrading Agreement 

## , and Order, including butnot 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 and Order, the word "day" as used in this Trading Agreement and Order means calendarday. Any documentoraction which is required by this Trading Agreement and Orderto submittedorperfonned by a date which falls on a Saturday, Sunday or aConnecticut orfederal holiday shall be 

### submitted orperformed by the next day which is not aSaturday, Sunday orConnecticutorfederal holiday. 20. Certification ofdocuments. Any document, including but not limited to any notice, which is required to be submitted to the Conunissionerunderthis Trading Agreement and Order shall be signedby:MP or, ifMP is not an individual, by an individual who is an authorized representative of:MP, 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 cenify in writing as 

### lonows: "1 have personally examined and am familiar with the information submitted in this document and all attachments thereto, and I cenify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the information, that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. I understand that any false statement made in the submitted information is punishable as acriminal offense under Section**53a~157b** 

### ofthe ConnecticutGeneral Statutes and any other applicable Jaw." 21. Noncompliance. This Trading Agreement and Orderis a final orderofthe Commissionerwith respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject W to an injunction and penalties. 22. False statements. Any false statement in any information submitted pursuant to this Trading Agreement and Orderis punishable as a criminal offense under Section 53a157b ofthe Connecticut General Statutes and any other applicable law.

11

/Middletown PowerLLC Trading Agreement and OrderNo. 8215A



# o 24.

?- -). 

### Notice oftransfer: liability of

### ?vIP. Until1v1P has fully complied with this Trading Agreement and Order, MP shall notify the Commissioner in writing no laterthan 15 days aftertransferring all or any portion ofthe facility, the operations, the site or the business,which is the subject ofthis Trading Agreement and Orderor after obtaining a new mailing or location address. MP's obligations under this Trading Agreement and Order shall not be 

### af!ebed by the passage oftitle to any 

### propeny to any otherperson or municipality. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding or take any other action to prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties for past, present, orfumre violations oflaw. If at any time the Commissionerdetennines that the actions taken by:M:P pursuant to this. Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extentordegree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute any proceeding to require MP to undertake furtherinvestigation orfurther action to prevent or abate violations orpollution. :MP's obliQations under law. Nothing in this Trading Agreement and Order shall relieve MP ofotherobligations under applicable federal, state and local law. 26. No assurance bv Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthat the actions taken by:MP pursuant to this Trading Agreement and Order 

### will resultin compliance orprevent or abate pollution. 27. Access to facility. Any representative ofthe Department ofEnvironmental Protection may enterthe facility without priornotice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order. 28. No effect on riQ'hts ofother oersons. This Trading Agreement and Orderneither creates nor affects any rights ofpersons ormunicipalities that are nO[ panies to this Trading**Agreem~nt** 

### and Order. 29. No Creation ofProperty Ri2:hts. This Trading Agreement and Orderdoes not create any property rights with respect to these DERCs. 30. Notice [Q CommissionerofchanQ'es. Within 15 days ofthe date MP becomes aware of achange in any infonnatjon submitted to the Commissioner under this Trading Agreement and Order, or that any such infonnation was inaccurate or misleading or that any relevant infonnation was omitted,!v1P shall submit the correct or omitted information to the Commissioner. 12Middletown PowerLLC Trading Agreement and OrderNo. 8215A

31. Notification ofnoncompliance. In the event that?v1P becomes aware that it did nOt or may not comply, ordid nOt ormay not comply on time, with any requirement ofthis 

### Trading Agreement"and Orderor ofany document required hereunder, N1P shall immediately notify bytelephone the individual identified in the next paragraph and 

### shall take all reasonabfe steps to ensure that any noncompliance ordelay is avoided or, 

# , ifunavoidable, is minimized to the greatestextent possible. Within five (5) days ofthe initial notice, 

### tv1P shall submit in writing the date, time, and duration ofthe 

### noncompliance and the reasons for the noncompliance ordelay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved, and:MP shall comply with any dates which may be approved in writing by the Commissioner. Notification by:MP 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. 32. Submission ofdocuments. Any documentrequired to 

### be submitted to the Commissionerunderthis Trading Agreement and Order shall, unless otherwise specifiedin this Trading Agreement and Orderorin writing by the Commissioner, 

### be directed to:**~.~chael~eur** DeparunentofEnvironmental Protection Bureau ofAirManagement Emissions**~d** Credit Trading Section 79 Elm Street Hartford, Connecticut 06106-5127

13Middletown PowerLLC Trading Agreement and OrderNo. 

### 8215A



### 1v1P consents to the issuance ofthis TradingAgreement and Orderwithout funher notice. The undersignedcertifies that he/she is fully authorized to enter into this Trading Agreement and Order and to 

### legally bind 

### ?viP to 

### the tenns and conditions ofthe Trading Agreement and Order. Middletown Power 

### LLe

on 

### al orderofthe CommissionerofEnvironmental Protection

, 

# / 30 ,2003

# l;:d~/y/ /AnhurJ. Rocque, Jr.



### Commissioner

TOWN OFMIDDLETOWN 

### !.AN"D RECORDS MAll..ED CERTIFIED MAll., RETUR.l\I RECEIPT REQUESTED 

### Cenified Document o.

14

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