STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONME. TAL PROTECTION

In the matter of

The State of Connecticut and

Middletown Power LLe

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Trading Agreement

and Order No. 82l5A

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Whereas, the Commissioner of Environmental Protection ("Commissioner") and

Middletown Power LLC ("MP") agree that it is in the public interest that they work

cooperatively to improve the air quality within the State of Connecticut 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 of MP, the Commissioner finds 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 Connecticut Light 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 of Middletown Station Unit 4, a 400 megawatt tangentially-fired boiler,

Connecticut Registration Number 104-0003 ("boiler"), which is subject to

Subsection 22a-174-22 of the Regulations of Connecticut State Agencies

("Regulations"). The boiler has 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 of the

stan-up procedure. A continuous emissions monitor ("CEM") cenified to 40 Code

of Federal 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) of the Regulations.

5. To reduce excess NOx emissions MP has represented that it monitors and controls

the combustion process of the boiler so that emissions frequently can be kepI

below the NO. emission limitations established by Section 22a-174-22(e) of the

Regulations.

6. Pursuant to Section 22a-174-220) of the Regulations, during the non-ozone

season,1'v1P intends both to acquire and generate approved DERCs until September (Prinled on Recycled hper)

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MiddlelOwn Power LLC Trading Agreement and

Order No. 8215A

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30,2004 for the boiler at the facility. Pursuant to Section 22a-174-22U) of the

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 of this Trading Agreement and Order, will conform to the requirements.of

Section 22a-174-220)(3) of the Regulations. Specifically, the reductions will be:

Real because they will result in a reduction of actual emissions released

into the air. net of any 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 CElvf data as applied in an

appropriate reliable and replicable protocol, providing the rate and total

mass amount of reduction.

Surplus because they are not required by any Connecticut statute or

regulation mandated by a current State Implementation Plan ("SIP"), and

are not currently relied upon in any applicable attainment plan, any

reasonable further progress plan or milestone demonstration.

Pennanent 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 of DERCs.

Enforceable because the DERCs are approved by the Commissioner

retrospectively after the submission by MP of a report that documents their

creation.

8. The emissions trading baselines ("baseline emission rate") and the allowable

emission limits for the boiler in pounds per million British thermal units

("lbsJM:MBlu") of heat input when operating on fuel oil are provided on the

following table 1:

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Middletown Power LLC 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

Boiler 4 No.6

I 4,684 CEM 0.25

Permit No. 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 year until September 30, 2004, MP may only obtain approval of

actual reductions in NOx emissions, generated by operating the boiler at a rate 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 of Tracting Agreement and

Order 8215 and Addendum I, pursuant to Section 22a-174-22(d)(3) of the

Regulations, previously approved the non-ozone season NOx DERCs referenced in

Table 2 of this Trading Agreement and Order. DERC creation serial numbers (if

assigned by the Depanment) to these previously approved reductions of NOx

emissions are provided in Table 2 of this 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 longer be eligible for use as a result of

the vintage restrictions are provided in Table 2 of this Trading Agreement and

Order in the expiration date column.

Table 2

prevlOusly approvedNOx DERCS

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 I CTOI/8215(DC)Noxnozl-16 16 12131/04

B. The Corrunissioner, in accordance with the provisions of this Trading Agreement and

Order, pursuant to Section 22a-174-22(d)(3) of the Regulations, hereby allows MP to:

1. Comply with Section 22a-174-22(d)(l) of the Regulations through use of BDERC and

DERC trading;

2. Ozone season BDERCs may be generated and used in accordance with this Trading

Agreement and Order; and

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MiddletOwn Power LLC Trading Agreement and

Order No. 8215A

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3. Upon sufficient documentation as prescribed in" this Trading Agreement and Order,

generate additional BDERCs and DERCs. Upon issuance of an addendum to this

Trading Agreement and Order the Commissioner may approve the generation of

additional BDERCs and DERCs by MP retrospectively. Approved BDERCs and

, . DERCs generated b~ 1\.1P may be held by MP or transferred to other persons In

accordance with this Trading Agreement and Order.

C. With the agreement of MP, the Commissioner, acting under Sections 22a-6, 22a-171,

22a·174, 22a-176, and 22a-177 of the Connecticut General Statutes, hereby orders

MP as follows:

1. Upon issuance of this Trading Agreement and Order, MP may generate approved

BDERCs and DERCs as allowed under this Trading Agreement and Order until

September 30. 2004.

2. Upon issuance of this Trading Agreement and Order, at the facility, rv1P shall comply

with Section 22a-174-22 of the Regulations through emission reduction trading. Until

MP achieves permanent compliance with the emission standard in Section 22a-174-

22(e) of the regulation or by September 30,2004, whichever occurs earlier:

a. rv1P shall use approved DERCs and BDERCs as required under this 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 under this Trading Agreement and

Order.

3. DERC e:eneration.

a. Until September 30, 2004, when the boiler has daily NOx emissions below

the applicable baseline emission rate(s), or the proportioned baseline

emission rate, or when 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 of DERCs generated as follows:

DERCs (Ions) = {[Total heat input' of all 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 of CEM-recorded dat:l. or actual fuel usage

data in MMBtu per unit of fuel combusted.

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Middletown Power LLC Trading Agreement and

Order No. 8215A

;: This rate shall be calculated by 1) multiplying the heat input of each 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. If the 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.

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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 of Federal Regulations Part 75 and weighted pursuant to the Department's policy

statement entitled "Guidance for Calculation of Emission Reduction Credits and

Determination of Compliance 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 Order as part of Attachment 1.

4 An additional ten (10) percent of all 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 percent discount shall be retired by the facility and permanently removed

from all calculations on a seasonal basis to assure a benefit to the environment

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b. Durin2 the ozone season until Seotember 30. 2004 and durinQ': the non-ozone

season until October 1,2003: For purposes of calculating the number of

BDERCs and DERCs generated from the boiler at the faCility, 1v1P shall use the

baseline emission rates for the boiler, or the proportioned baseline emission rate

set forth in footnote 2 of paragraph 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 proportioned baseline

emission rate.

c. Startim;?: on October L 2003 and until September 30. 2004 durinQ': the nonozone season: For purposes of generating DERCs from the boiler at the

facility,:MP shall use 0.15Ibs/M1v1Bru of heat 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 of all DERCs (tons) generated by the

boiler shall be retired by the facility and pennanenQy 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 or until

their vintage expiration date, or until September 30,2004, whichever occurs

first.

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Middletown Power LLC 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 of DERCs generated by

the boiler, :MP shall provide documentation containing a sample spreadsheet

with calculation fannulas used to detennine reported numbers; monthly

operating rcpons of actual fuel usage including the fuel BTU content, number of

gallons, and Eubic feet used for each fuel type; daily M::MBru for each 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). or the proponioned baseline emission rate

set forth in footnote 2 of paragraph C.3.a. of this Trading Agreement and Order.

nel of the len (10) percent environmental discount.

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f. Durin!! the non-ozone season startimz on October 1. 2003 and until September

30.2004:

In requesting approval of DERCs 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 of actual

fuel usage including the fuel BTU content, number of gallons, 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 of the applicable environmental

discount.

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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

calculated in accordance with any missing data substitution procedures, including

those allowed under Section 22a-174-22b of the Regulations and 40 CFR Part 75.

5. Upon sufficient documentation, as detennined by the Commissioner, that MP has

met the requirements of this Trading Agreement and Order, the Commissioner may

provide written approval of DERCs generated by MP retrospectively. Requests for

approval of all subsequent DERCs 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:der may be held or transferred to other persons.

6. DERC use. Until September 30, 2004, before the first day of each month, and

staning on October I, 2003 also before the first day of each non-Olone season, MP

should have in its possession sufficient approved DERCs for the boiler based on the

following:

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Middletown Power LLC Trading Agreement and

Order No. 8215A

a. At all times:

Before the first day of each month, calculate projected worst case DERCs

required for that calendar month as follows:

Estimated DERCs (tons) = {[estimated worst case NOx emission rate in

, IbslMMBtu - «0.95) x (NOx allowable emission limit , or proportioned emission rate calculated pursuant to

Section 22a-174-22(f)(2)(A) of the Regulations in

IbsIMMBtu))J x (Estimated fuel use in MMBtu)) t

2000 pounds/tons.

No later than the twentieth day of each month, :MP shall calculate and

permanently retire DERCs used in the preceding calendar month, as follows:

(i) For the boiler on each day, detennine whether the 24-hour

average NOx emission rate· is less than the baseline emission

rate or greater than the NOx allowable emission limit.

(ii) When the boiler has a daily NOx emission rate (24-hour average)

exceeding the NOx allowable emission limit, calculate me

amount of DERCs used, as follows:

b.

Actual DERCs (tons) = {[(CEM-recorded NOx daily average emission rate in

IbsIMMBtu*) - «0.95) x (NOx allowable emission limit

or proportioned emission rate calculated pursuant to

Section 22a-174-22(f)(2)(A) of the 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 of BDERCs, excess DERCs from previous

months can be applied to subsequent months. BDERCs are

subject to the limitations set forth in paragraph C.7. of this

Trading Agreement and Order.

During the non-ozone season starting on October 1, 2003:

In addition to meeting the 24-hour emission limit in Table 22-1 of Section

22a-174-22 of the Regulations. meet a non-ozone season emission limit of

O.151bslM:MBtu. Prior to October 1, 2003:MP shall estimate and acquire

the amount of DERCs or allowances required for such non-ozone season

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Middletown Power LLC Trading Agreement and

Order No. 8215A

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needed to comply with Section 22a-174-22(c)(3) of the Regulations as

follows:

Estimated DERCs (tons) = [Estimated fuel use in 1vfMBtu from October 1

through April 30 x (lower of the estimated seasonal

average NOx emission rate or the proportioned 24-hour

allowable emission limit in IbsIM:MBtu during October 1

through April 30) - (0.95 x 0.15IbslMMlltu)].;. 2000

pounds/ton.

No later than 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 (lower of the actual seasonal average NOx

emission rate or the 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 or non-Olone season CEM-recorded NOx emission rate is

used to calculate DERCs used by the boiler, :MP shall include missing data

calculated in accordance with missing data substitution procedures under 40

CFR Pan 75.

7. BDERCs shall only be used by other NOx 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 a given year shall only be used during the following ozone season. BDERCs are

subject to all DERC requirements set forth in this Trading Agreement and Order except

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 boiler of: 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 of operating hours per day, the number of invalid data hours of the total

operating hours per day; the number of DERCs in its possession, created, purchased and

used (by serial number if assigned) each month in accordance with the appropriate

emission rates and limits in this Trading Agreement and Order; the number of DERCs

used during the Olone season and non-alone season (the remainder of the year); as well

as documentation attesting to the fact that approved DERCs used during the ozone

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Middletown Power LLC Trading Agreement and

Order No. 8215A

season were generated during the ozone season. Generator certification of this fact

shall be sufficient. MP shall maintain and submit such records in accordance with

Section 22a-174-22 of the Regulations.

9. Record Keeping. MP shall retain records and supporting documentation as described in

this Trading Agreemeiu and Order for a minimum of five years, commencing on the , date such records were created. MP shall provide the records specified above to the

Commissioner within thirty (30) days of receipt of a written request from the

Commissioner.

10. Annual Emission Statement. No later than March 1 of every year after issuance of this

Trading Agreement and Order, MP shall include with the Annual Emission Statement

provided to the Commissioner, a record of each sale or other transfer, and use of any

and all of the DERCs approved within and subsequent to issuance of this Trading

Agreement and Order until all such DERCs have been used or are no longer in MP's

possession. MP shall also include actual NOx emissions from the boiler and the amount

of all DERCs used (including serial numbers (if assigned) and approved DERCs

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

.......") previous calendar year. These reports shall be on a fonn prescribed by the

-"" Commissioner and shall be in monthly increments. Should MP choose to discontinue

the generation of DERCs, MP will notify the Commissioner upon discontinuance. MP

shall retain records and supporting documentation as described in this Trading

Agreement and Order for a minimum of five years, commencing on the date such

records were created. MP shall provide the records specified above to the

Commissioner within thirt:t (30) days of receipt of a wrinen request from the

Commissioner.

11. Allowance Use. Pursuant to Section 22a-174-22(d)(3) of the Regulations, :tv1P may use

NOx allowances, pursuant to Section 22a-174-22(j) of the Regulations to achieve all or

a portion of the reductions required by Section 22a-174-22 of the Regulations. Any

allowance used for compliance with Section 22a-174-22(e) of the Regulations shall be

subject to all restrictions and/or requirements applicable to DERCs contained in this

Trading Agreement and Order. Each allowance used for compliance with Section 22a174-22 of the Regulations shall be equivalent to one discrete emission reduction credit

and shall be deducted from MP's NOx Budget Program compliance 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 of Connecticut 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%

if DERCs are not in MP's possession for use prior to the first day of each month or

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Middletown Power LLC Trading Agreement and

Order No. 8215A

applicable season. However, based on the gravity of the noncompliance, the

Commissioner may require additional upward adjustment.

13. Vinla2e Restriction. For the purposes of compliance with Section 22a·174-22 of the

Regulations, DERCsiallowances shall only remain valid for five (5) calendar years from

the year of the generation/allocation of such 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 of the 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 later than September 30,2004, with respect to the boiler, MP shall

comply with the requirements of Subdivision 22a-174-22(d)(I) of the Regulations.

However, after full program review of this and other Trading Agreements and Orders

and, if determined to be appropriate, the Commissioner may grant a wrinen extension of

this Trading Agreement and Order.

15. Future Comoliance Repon. On or before March 31, 2004 MP shall submit a repon

indicating how the facility shall comply with Section 22a-174-22 of the 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 Order until 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 Order in a complete and approvable fonn. If

the Commissioner notifies MP that any document or other action is deficient, and does

not approve it with conditions or modifications, it is deemed disapproved, and MP shall

correct the deficiencies and resubmit it within the time specified by the Commissioner

or, if no time is specified by the Commissioner, within 30 days of the Commissioner's

notice of deficiencies. In approving any document or other action under this Trading

Agreement and Order, the Commissioner may approve the document or other action as

submitted or performed or with such conditions or modifications as the Commissioner

deems necessary to carry out the purposes of this Trading Agreement and Order.

Nothing in this paragraph shall excuse noncompliance or delay.

18. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are

those for which the Commissioner has provided written authorization for use in

compliance with Section 22a-174-22 of the Regulations; "Commissioner" means the

<....... Commissioner or a representative of the Commissioner; "Ozone season" means the

period from May 1 through September 30 in any given calendar year. The date of

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Mi ddletown Power LLC Trading Agreement and

Order No. 82151\

"issuance" of this 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.

19. Dates. The date of submission to the Commissioner of any document required by this

Trading Agreement and Order shall be the date such document is received by the

Commissioner. The dine of any notice by the Commissioner under Trading Agreement , and Order, including but not limited to notice of approval or disapproval of any

document or other action, shall be the date such notice is deposited in the U.S. mail or is

personally delivered, whichever is earlier. Except as otherwise specified in this Trading

Agreement and Order, the word "day" as used in this Trading Agreement and Order

means calendar day. Any document or action which is required by this Trading

Agreement and Order to submitted or perfonned by a date which falls on a Saturday,

Sunday or a Connecticut or federal holiday shall be submitted or performed by the next

day which is not a Saturday, Sunday or Connecticut or federal holiday.

20. Certification of documents. Any document, including but not limited to any notice,

which is required to be submitted to the Conunissioner under this Trading Agreement

and Order shall be signed by:MP or, if MP is not an individual, by an individual who is

an authorized representative of:MP, in accordance with Section 22a-174-2a(a) of the

Regulations of Connecticut 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 of those individuals responsible for

obtaining the information, that the submitted information is true, accurate and

complete to the best of my knowledge and belief. I understand that any false

statement made in the submitted information is punishable as a criminal offense

under Section 53a~157b of the Connecticut General Statutes and any other

applicable Jaw."

21. Noncompliance. This Trading Agreement and Order is a final order of the

Commissioner with 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 Order is punishable as a criminal offense under Section 53a157b of the Connecticut General Statutes and any other applicable law.

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Middletown Power LLC Trading Agreement and

Order No. 8215A

o

24.

?--).

Notice of transfer: liability of ?vIP. Until1v1P has fully complied with this Trading

Agreement and Order, MP shall notify the Commissioner in writing no later than 15

days after transferring all or any portion of the facility, the operations, the site or the

business,which is the subject of this Trading Agreement and Order or 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 of title to any propeny to any other person 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 of law, prevent or abate pollution, recover costs and natural resource

damages, and to impose penalties for past, present, or fumre violations of law. If at any

time the Commissioner detennines that the actions taken by:M:P pursuant to this.

Trading Agreement and Order have not successfully corrected all violations, fully

characterized the extent or degree of any pollution, or successfully abated or prevented

pollution, the Commissioner may institute any proceeding to require MP to undertake

further investigation or further action to prevent or abate violations or pollution.

:MP's obliQations under law. Nothing in this Trading Agreement and Order shall relieve

MP of other obligations under applicable federal, state and local law.

26. No assurance bv Commissioner. No provision of this Trading Agreement and Order

and no action or inaction by the Commissioner shall be construed to constitute an

assurance by the Commissioner that the actions taken by:MP pursuant to this Trading

Agreement and Order will result in compliance or prevent or abate pollution.

27. Access to facility. Any representative of the Department of Environmental Protection

may enter the facility without prior notice for the purposes of monitoring and enforcing

the actions required or allowed by this Trading Agreement and Order.

28. No effect on riQ'hts of other oersons. This Trading Agreement and Order neither creates

nor affects any rights of persons or municipalities that are nO[ panies to this Trading

Agreem~nt and Order.

29. No Creation of Property Ri2:hts. This Trading Agreement and Order does not create

any property rights with respect to these DERCs.

30. Notice [Q Commissioner of chanQ'es. Within 15 days of the date MP becomes aware of

a change 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.

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Middletown Power LLC Trading Agreement and

Order No. 8215A

31. Notification of noncompliance. In the event that?v1P 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 Agreement"and Order or of any document required hereunder, N1P shall

immediately notify by telephone the individual identified in the next paragraph and

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

, if unavoidable, is minimized to the greatest extent possible. Within five (5) days of the

initial notice, tv1P shall submit in writing the date, time, and duration of the

noncompliance and the reasons for the noncompliance or delay and propose, for the

review and written approval of the 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 or delay, and

the Commissioner's approval of any compliance dates proposed shall not excuse

noncompliance or delay unless specifically so stated by the Commissioner in writing.

32. Submission of documents. Any document required to be submitted to the

Commissioner under this Trading Agreement and Order shall, unless otherwise

specified in this Trading Agreement and Order or in writing by the Commissioner, be

directed to:

~.~chael~eur

Deparunent of Environmental Protection

Bureau of Air Management

Emissions ~d Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127

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Middletown Power LLC Trading Agreement and

Order No. 8215A

1v1P consents to the issuance of this Trading Agreement and Order without funher notice. The

undersigned certifies that he/she is fully authorized to enter into this Trading Agreement and Order

and to legally bind ?viP to the tenns and conditions of the Trading Agreement and Order.

Middletown Power LLe

on

al order of the Commissioner of Environmental Protection

, /

30 ,2003

l;:d~/y/ /Anhur J. Rocque, Jr.

Commissioner

TOWN OF MIDDLETOWN !.AN"D RECORDS

MAll..ED CERTIFIED MAll.,

RETUR.l\I RECEIPT REQUESTED

Cenified Document o.

14

/