## STATE OFCONNECTICUT DEPARTMENT OFENVIRONMENTALPROTECTION

In the matter of

The State of Connecticut and

The Connecticut Light and Power Company Trading Agreement and Order No. 8158

Whereas, the Commissioner ofEnvironmental Protection ("Commissioner") andThe Connecticut Light and Power Company ("CL&P") 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 ofemission reduction trading will achieve this result in a timely and cost-effective manner:
A. At the request and with the agreement of CL&P, the Commissioner finds the following:

1. CL&P is an electric utility with headquarters in Berlin, Connecticut, which owns and operates four fossil fuel-fired electric generating stations within the state.

2. One ofthe four fossil fuel-fired electric generating stations within the state that CL&P owns and operates is Norwalk Harbor Station at Manresa Island Avenue in Norwalk, Connecticut ("facility"'). At the facility, CL&P operates Norwalk Harbor Station Unit 1, a 164 megawatt tangentially-fired boiler on No. 6 fuel oil and Norwalk Harbor Station Unit 2, a 172 megawatt tangentially-firedboiler on No. 6 fuel oil, Connecticut Registration Numbers 137-0028 and 137-0030 respectively, ("boilers"). Acontinuous emissions monitor ("CEM"), certified to 40 Code of Federal Regulations Part 75, measures nitrogen oxide ("NOx") emissions at a common stack from the boilers.

3. During the year 1979, prior to modifications of the boilers' burners, combustion controls and operating conditions, and prior to the installation of a selective noncatalytic reduction system, and based on

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### andOrder No. 8158

Department ofEnvironmental Protection approved stack test data, the average annual NOx emission rate for NorwalkHarbor Station Unit 1 was 0.285 pounds per million British thermal units ("lbs/MMBtu") ofheat input when operating on No. 6 fuel oil and the average annual NOx emission rate for Norwalk Harbor Station Unit 2 was 0.282 lbs/MMBtu ofheat input when operating on No.6 fuel oil. On and afterMay 31, 1995, the Regulations ofConnecticut State Agencies ("Regulations") require that the boilers emit NOx at a rate no greaterthan 0.25 lbs/MMBtu ofheat input when operating on No.6 fuel oil.

4. In January 1994, CL&P completedmodifications on both boilers' burners and combustion controls, and began to test and adjust operating conditions, thereby reducing bothboilers' NOx emission rates below their permitted, allowed and actual baseline emission rates. Aselective noncatalytic reduction systemwas installed at the facility by June, 1995 to provide further reductions ofNOx emissions. Such modifications and control equipment enabledCL&P's boilers to frequently meet and operate below the emission limitation specified in Section 22a-174- 22(e)ofthe Regulations.

5. AfterNovember 1, 1996, CL&P may obtain approval of actual reductions in NOx emissions, generatedby operating the boilers at a rate which is below 0.25 lbs/MMBtu ofheat input when operating on No. 6 fuel oil for use as emission reduction credits ("ERCs").

Date: 2 6. Pursuant to Section 22a-174-22(j) of the Regulations, CL&P intends to acquire and generate approved ERCs until May 1, 2003 at the facility. Approved ERCs are defined for purposes of this 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. CL&Pwill acquire approved ERCs monthlyon an as-needed basis,
as determinedby actual NOx emissions in the event that the 24-hour average exceeds the NOx emission 

### limitations ofSection 22a-174-22(e) ofthe

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Regulations. TradingAgreement and OrderNo. 8158

7. When properly documentedby CL&P, and approved by the Commissioner, the emission reductions identified above, and as computed in accordance with the terms of this Trading Agreement andOrder, will conformto the requirements ofSection 22a-174-22(j)(3) ofthe Regulations. Specifically, the reductions will be:

because they result in a reduction ofactual emissions released into the air, net ofany consequential increase in actual emissions resulting from shifting demand. The emission reductions are properlymeasured, recorded and reported. Quantifiable because they are based on continuous emission monitoring 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.

Permanent because the advanced control systems are in place and operating, and an appropriate tracking systemis in place to monitor all data required to verify and quantify the creation ofERCs.

Enforceable because the ERCs are approved by the Commissioner retrospectively after the submission by CL&P of the quarterly or semi-annual report that will document their creation.

8. As documented inAttachment 1, attached to and incorporated byreference into this TradingAgreement and Order, 116 ERCs were createdby the boilers between November 1, 1996 and September 3D, 1997 (74 during the ozone season and 42 during the non-ozone season). This number ofERCs takes into consideration

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the ten (10) percent environmental discount.

B. The Commissioner, in accordance with the provisions of this Trading Agreement and Order, pursuant to Section 22a-174- 22(d)(4) ofthe Regulations, will allow CL&P and approved
sources within Connecticut to use 116 tons ofNOx ERCs referenced in paragraph A.B. of this Trading Agreement and Order (74 during the ozone season and 42 during the nonozone season) for purposes ofcompliance under Section 22a174-22(j) and/or Section 22a-174-3(1)(5) ofthe Regulations to achieve a portion ofthe nitrogen oxide emission reductions required or as emission offsets for new sources. Upon sufficient documentation as prescribedbelow, the Commissionermay provide written approval ofadditional ERCs byCL&P retrospectively. Approved ERCs createdby CL&Pmay be held by CL&P or transferred to otherpersons. Such ERCs shall remain valid until they are used or until May 1, 2003, whichever occurs first.

C. With the agreement ofCL&P, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 of the Connecticut General Statutes, orders CL&P as follows:

1. ERC.generation. For purposes ofgenerating ERCs from the boilers at the facility, CL&P shall use 0.25 Ibs/MMBtu ofheat input when operating on No. 6 fuel oil as the baseline emission rate for the boilers. When calculating ERCs, CL&P shall use the lower of CEM-recordedNOx emission rate* or actual fuel usage data for the boilers in MMBtu/day, when determining heat input. Ten (10) percent ofall ERCs (tons) createdby the boilers shall be retired by the facility andpermanently removed from all calculations
on a dailybasis to assure a benefit to the environment.

*This rate shallbe calculatedpursuantto themethodology described in 40Code ofFederal Regulations Part 15.

Date: 4 2. ERC Use. Approved ERCs shall be acquired for the periodbeginning June 1, 1995 and continuing until CL&P achieves permanent compliance for the boilers 

# '%drr Initials:The Connecticut Light and Power Company Trading Agreement and OrderNo. 8158

with the emission standards in Section 22a-174-22(e) ofthe Regulations oruntil May 1, 2003, whichever
occurs first. CL&P shall acquire approved ERCs, and document and record the amounts ofNOx emissions and ERCs usedby the boilers eachmonth, and shall maintain andprovide such records in accordance with the following and Section 22a-174-4 ofthe Regulations, until May 1, 2003:

a. Before the first day ofeachmonth, calculate projectedworst case ERCs required for the same calendarmonth as follows:

ERCs (tons) : {[estimatedworst case NOx emission rate in lbs/MMBtu

- ((0.95) x (NOx RACT limit in lbs/MMBtu))} x (Estimated fuel use in MMBtu)) " 2000 pounds.

b. Acquire sufficient approved ERCs no later than the first ofeachmonth to assure compliance for, at a minimum, that calendarmonth. Excess ERCs fromprevious months canbe applied to SUbsequent months. ERCs required shall be adjusted upwards by 100% ifERCs are not in CL&P's possession prior to use.

c. No later than the twentieth day ofeach month, calculate ERCs used in the preceding calendar month, as follows: (1) For the boilers on each day, determine whether the 24-hour average NOx emission rate is less than the baseline emission rate
or greater than the NOx RACT limit. (2) When the boilers have a daily NOx emission rate (24-hour average) exceeding the NOx RACT limit, calculate the amount of ERCs used, as follows:

ERCs (tons)

- {((CEM-recordedNOx daily average emission rate in Ibs/MMBtu)

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(0.95) x (NOx RACT limit in lbs/MMBtu))] x (actual fuel use in MMBtu)} 72000 pounds.

d. Maintain documentation to attest to the fact that ERCs usedduring the ozone season were generated during the ozone season. Generator certification of this fact shall be sufficient.

e. After full programreview, and ifthe Commissionerdeems it appropriate, the Commissionermay allow the survival and use of these ERCs beyondApril 30, 2003.

3. CL&P shall maintain records for the boilers showing daily NOx mass emissions, and actual NOx emission rates (24-hour average). CL&P shall also maintain records showing a monthly total of all ERCs generated net ofthe ten (10) percent environmental discount.

4. In requesting ERC approval, CL&P shall provide documentation containing monthly operating reports of actual fuel usage in MMBtu and actual heat input based upon CEM-recorded data, daily actual NOxmass emissions andNOx emission rates (24-hour average), number ofoperating hours per day, and ERCs generated using the baseline emission rate, net ofthe ten (10) percent environmental discount.

Date: 6 No later than March 1 ofevery year after issuance of this TradingAgreement andOrder, CL&P shall include with the Annual Emission Statement provided to the Commissioner, a record ofeach sale or other transfer, and use ofany and all ofthe ERCs approved within and SUbsequent to issuance ofthis Trading Agreement and Orderuntil all such ERCs have been used. CL&P shall also include actual NOx emissions from the boilers, and the amount ofall ERCs used (including approved ERCs generated and/or purchased from other facilities), generated and/or approved for the previous calendaryear. These reports will be on a formprescribedby the Commissioner. This reporting may cease ifa central registry is approved by the Commissioner. Should CL&P choose to discontinue the

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generation ofERCs, CL&P will notify the Commissioner upon discontinuance.

6. In order to considerCEM-recordedNOx emission rates valid for ERC approval, all NOx and CO2/02 CEMs must comply with 40 Code of Federal Regulations Part 75.

7. CL&P shall retain records and supporting documentation
as described in this TradingAgreement andOrder for a minimumof five years, commencing on the date such records were created. CL&P shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written request from the Commissioner.

8. Upon sufficient documentation that CL&P has met the requirements ofparagraphs C.l., C.3, C.4., and C.lO., ofthis TradingAgreement andOrder, the Commissioner may provide written approval ofERCs createdby CL&P retrospectively, in addition to the those approved in paragraph 

### B. ofthis Trading Agreement and Order. Requests for approval ofall subsequent ERCs created shall be submitted in writing to the Commissioner. Approved ERCs createdby CL&Pmay be held or transferred to otherpersons. Such ERCs shall remain valid until they are used oruntil May 1, 2003, whichever occurs first.

9. ShouldCL&P choose to generate additional ERCs, reports documenting these ERCs maybe submitted on a quarterly or semi-annual basis. Such reports shall be compiled on a monthly basis.

10. When the boilers have daily NOx emissions below the baseline emission rate, CL&P shall calculate the amount ofERCs generated as follows:

ERCs (tons) = {[Total heat inputl ofNo.6 fuel oil in MMBtu x ((0.25 1bs/MMBtu)

- (the CEM-recordedNOx emission rate'))] + 2000 1bs/ton} x (0.90).'

where:

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1 Heat input shall be calculatedusing the lower of CEM-recorded data or actual fuel usage data in MMBtu per unit of fuel combusted.

2This rate shall be calculatedpursuant to the methodology described in 40 Code of Federal Regulations Part 75.

3 Ten (10) percent ofall ERCs (tons) created by the boilers shall be retired by the facility and permanently removed from all calculations on a daily basis to assure a benefit to the environment.

11. As used in this Trading Agreement and Order, "Conunissioner" means the CommissionerofEnvironmental Protection or an agent ofthe Commissioner. "Ozone season" means the period fromMay 1 through September 30 in any given calendar year.
12. Notification ofnoncompliance. In the event that CL&P becomes aware that it did not ormay not comply, or did not ormay not comply on time, with any requirement ofthis Trading Agreement andOrderorof any document required hereunder, CL&P shall immediately notify the Commissioner and shall take all reasonable steps to ensure that any noncompliance or delay is avoided or, ifunavoidable, is minimized to the greatest extent possible. In so notifying the Commissioner, CL&P shall state in writing the reasons for the noncompliance ordelay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved, and CL&P shall complywith any dates whichmay be approved in writing by the Commissioner. Notification by CL&P shall not
excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposed shall not
excuse noncompliance or delay unless specifically so statedby the Commissioner in writing.

13. Certification ofdocuments. Any document, including but not limited to any notice, which is required to be
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## s~ted to the

## comm~ssioner underD ::::

## Tradi~flffThe Connecticut Light and PowerCompany Trading Agreement 

### andOrderNo. 8158

Agreement and Order shall be signedby a responsible corporate officer ofCL&P or a duly authorized representative ofsuch officer, as those terms are 

### defined in Section 22a-430-3(b)(2) ofthe Regulations, and by the individual or individuals responsible for actually preparing such document, each ofwhom shall examine and be familiar with the information submitted in the document and all attachments thereto, and shall make inquiry ofthose individuals responsible for obtaining the information to determine that the information is true, accurate, and complete, and each ofwhom shall certify in writing as follows:

"I have personally examined and am familiar with the information submitted in this document and all attachments thereto, and I certify that based on reasonable investigation, includingmy inquiry of those individuals responsible for obtaining the information, the submitteq information is true, accurate and complete to the best ofmy knowledge and belief. I understand that any false statement made in the submitted information may be punishable as a criminal offense under Section 22a-175 ofthe Connecticut General Statutes or, in accordance with Section 22a-6 ofthe ConnecticutGeneral Statutes, under Section 53a-157b ofthe Connecticut General Statutes, and in accordance with any other applicable statute. 'I
14. Final Agreement and Order. This Trading Agreement and Order is the final agreement and orderby and between the Commissioner andCL&Pwith respect to the matters addressed herein, and shall not be modified without the written agreement ofboth parties.

15. False statements. Any false statement in any information submittedpursuant to this Trading Agreement and Ordermay be punishable as a criminal offense under Section 22a-175 of the Connecticut General Statutes or, in accordance with Section 22a-6, under Section 53a-157b ofthe Connecticut General Statutes.

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16. Notice oftransfer; liability ofCL&P and others. Until CL&P has fully compliedwith this Trading Agreement andOrder, CL&P shall notify the Commissioner in writing no later than fifteen (15) days after transferring all or any portion of the facility, the operations, the site or the business which are the subject ofthis TradingAgreement and Order, orobtaining a newmailing or location address. Any license transfer shall be conducted in accordance with Section 22a-60 ofthe Connecticut General Statutes. CL&P's obligations under this Trading Agreement andOrder shall not be affectedby the passage oftitle to any property to any other person ormunicipality. Any future owner ofthe facility may be subject to the issuance ofa TradingAgreement and Order from the Commissioner.

17. 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 violations of law which are willful orcriminally negligent or for which penalties have notbeen specifically provided in this TradingAgreement and Order, including but not limited to violations ofanypermit issuedby the Commissioner. Ifat any time the Commissionerdetermines that the actions taken by CL&Ppursuant to this Trading Agreement andOrderhave not fully achieved compliance with Section 22a-174-22 of the Regulations, the Commissioner may institute anyproceeding against CL&P and/or require CL&P to undertake further investigation or further action.

18. CL&P's obligatioos ynder law. Nothing in this Trading Agreement andOrder shall relieve CL&P ofother obligations under applicable federal, state and local law.

Date: 19.

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10 Any representative of Protection may enter and 

# 1&.8117The Connecticut Light and Power Company TradingAgreement and OrderNo. 8158

inspect the facility and inspect and copy records within normal business hours without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement andOrder.

20. NQ effect on rights QfQther oerSQns. This Trading Agreement andOrder shall neither create nQr affect any rights ofpersons who ormunicipalities which are not parties tQ this Trading Agreement and Order.

21. No CreatiQn Qf Property Rights. This Trading Agreement andOrderdQes not create anyprQperty rights with respect to these ERCs.

22. Notice to CQmmissioner ofchanges. Within fifteen (15) days of the date CL&P becQmes aware Qfa change in any informatiQn submitted tQ the CQmmissiQnerunder this TradingAgreement and Order, Qr that any such infQrmatiQn was inaccurate ormisleading or that any relevant infQrmation was omitted, CL&P shall submit the correct or Qmitted infQrmatiQn tQ the CQmmissiQner.

23. SubmissiQn QfdQcuments, Any document required to be submitted to the CQmmissiQner under this Trading Agreement and Order shall, unless Qtherwise specified in writing by the CommissiQner, be directed to:

Mr. David Jawin Department ofEnvironmental Protection Bureau QfAirManagement Compliance and Field OperatiQns DivisiQn Emissions Trading Unit 79 Elm Street HartfQrd, Connecticut 06106

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CL&P consents to the issuance ofthis Trading Agreement and Order without further notice. The undersigned certifies that he/she is fully authorized to enter into this Trading Agreement and Order and to legally bind CL&P to the terms and conditions ofthe Trading Agreement and Order.

Signature:
Type Name:
Type Title:

Date: The Connecticut Light Company

# Will::!:~~
Vice President
April 28, 1999

Issued as a final consent order

Environmental Protection on Commissioner of

, 1999.

Arthur J. Rocque, Jr. Commissioner

CITY OF NORWALKLAND RECORDS MAILED CERTIFIEDMAIL, RETURN RECEIPT REQUESTED Certified Document No.

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