SIP DESCRIPTION PSEG Power Connecticut LLC Tradine Aereement and Order

No. 8241 Modification 1

J. SIP - DESCRIPTION OF DERC CREATION AND/OR VSE

SIP SUMMARY TABLE

Trading Agreement and Order No. 8241 Modification 1

PSEG Power Connecticut LLC 1 Atlantic Street Bridgepolt IT 06604

Identifier IClient 8087 Town # 12 Premise # 45.1 Sequence # 1

Contact Mr. Robert Silvestri Tel: (203) 551-6032 Fax (203) 551-6053

Environmental Onerations Leader

Pollutant and Regulatory Standard: NOx ISection 22a-174-22 of the Regulations of

Connecticut State A~encies.

Nonattainment Area Classification Severe

Annual DERCs needed Estimated < 5 tons

Annual DERCs pcnerated Estimated 125 non --ozone, 1500 ozone ffiDERCs)

Comoliance Time Period Vn,il Apri130, 2007.

Max. Emission Rate: full load emission rate (FLER) Use. (See Table 1 below):

Table 1

NOx Emission Rates and Allowable Limits

Vnit Fuel Maximum Stack Test FLER Allowable Date of Next

PIR number Capacity (ppmvd) IbslMMBtu Rate Stack Stack

MMBtuIhr IbsIMMBtu Test Test Due

Unit 3 Coal 4100 CEM CEM .38 NA NA

P-015-0089 #6 oil .25

#2 oil .20

seasonalc .15

II. SPECIAL REQUIREMENTS

3. This Trading Agreement and Order Modification supersedes Trading Agreement and

Order No. 8241 issued on April 22, 2003.

b. Calculations of credits used or generated shaH be as specified in Trading Agreement and

Order No. 824I.

c. Slarting on October I, 2003 and until April 30, 2007 during the non-ozone season PSEG

Power Connecticut LLC shall meet a non-ozone season emission limit of 0.15

IbsIMMBtu of heat input when operating on all fuels.

~2,.......,.,..,..

STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICur

AND·

PSEG POWER CONNECTICur liC

TRADING AGREEMENT AND

ORDER NO. 8241

MODIFICATION NO.1

TRADING AGREEMENT AND ORDER MODIFICATION

In lhe maner of aTrading Agreement and Order between the Commissioner of Environmental

Protection ("Commissioner") and PSEG Power Connecticut liC (''PSEG'').

WHEREAS, the Commissioner and PSEG, having agreed to the terms and conditions set

forth in Trading Agreement and Order No. 8241 issued on February 13, 2003, do now, by mutual

agreement, modify said Trading Agreement and Order as follows:

l. Delete the date May 1, 2005, and substitute therefor May 1,2007, in paragraphs

AS, A.7., A.8., c.l., C.l.b., C.l.d.iv., and C.6. footnote 3.

,fJ'· 2. Delete the dates May 1, 2005, and substitute therefor May 1, 2007, in paragraphs

C.2. and C.7.

3. Delete paragraph C.7.a. and substitute the following therefor:

At all times:

Before the first day of each month, PSEG shall 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 limit or proportioned emission,rate

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

IbslMMBtu»] x (Estimated fuel use in MMBtu)} ... 2000 pounds/ton.

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

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

(i) For the boiler on each day, determine whether the 24-hour average NOx

emission rate'" is less than the baseline emission rate or greater [han the

NOx allowable limit.

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

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PSEG Power Connecticut liC 2 Trading Agreement and Order

No. 8241 Modification No. I

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exceeding the NOx allowable limit, calculate the amount of DERCs used,

as follows:

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

lbsIMMBtu') - (0.95) x (NOx allowable 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») + 2000 pounds/ton.

'This rate shall be calculated pursuant to the methodology described in 40 CFR

Part 75.

During the non-ozone season:

During the period from October 1 through April 3D, inclusive, each year until May

1,2007, the boiler shall, 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 0.15 IblMMBtu. Prior to October I. 2003. October I. 2004.

October I. 2005. and October I. 2006. PSEG shall estimate and acquire the

amount of non-ozone season DERCs or allowances needed to comply with

Section 22a-174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) = [Estimated fuel use in MMBtu from October I through

April 30 x (lower of the seasonal average NOx emission rate or the proportioned

24-hour allowable emission limit in IblMMBtu during October I through April 30

- (0.95 x 0.15 lblMMBtu»J + 2000 pounds/ton.

No later than May 31 of 2004. 2005. 2006. and 2007. in addition to the DERCs

retired pursuant to paragraph C.7.a. of this Trading Agreement and Order. PSEG

shall calculate and permanently retire DERCs used in the preceding non-Olone

season as follows:

Actual DERCs (tons) = [Actual fuel use in MMBtu from October I through April

30 x (lower of the actual seasonal average NOx emission rate or the proPortioned

24-hour allowable emission limit in IblMMBtu during October I through April 30

- (0.95 x 0.15IblMMBtu»J + 2000 pounds/ton.

Delete paragraph C.8. and substitute the following therefor:

DERC Shortfall. At a minimum. DERCs required shall be adjusted upwards by

100% ifDERCs are not in PSEG's possession for use prior to the fIrst day of each

month or applicable season. However, nothing in this Trading Agreement and

Order shall affect the Commissioner's authority [0 institute any proceeding or take

any other action to require additional upward adjustment, based on the gravity of
PSEG Power Connecticut ll...C 3 Trading Agreement and Order

No. 8241 Modification No.1

5.

6.

any alleged noncompliance or violation of law. PSEG shaU pennanently retire the

quantity of emissions caused by the exceedance plus a 100% premium within

sixty (60) days of PSEG's discovery of the DERC shortfall. PSEG shall certify

and repon any such DERC retirement to the Commissioner in accordance with

paragraph C.28 of this Trading Agreement and Order.

Delete paragraph C.12. and substitute the following therefor:

Annual Emission Statement and Non-Ozone Season Emission Statement. No later

than March 1 for the previous calendar year and July 30 (for the October through

April time period only starting in 2003) of every year after issuance of this

Trading Agreement and Order, PSEG shall provide 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 PSEG's possession. PSEG shall

also include acrual 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 and October through April time period. These reports shall

be on a fonn prescribed by the Commissioner and shall be in monthly increments,

and by ozone and non-ozone seasons.

Include a new paragraph C.30. as follows:

Extension. No later than May I, 2007, with respect to the boiler, PSEG shall

comply with the requirements of Sections 22a-174-22(d)(I) and 22a-174-

22(d)(2)(A) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the Commissioner

will grant a written extension of this Trading Agreement and Order.

7. Include a new paragraph C.31. as follows:

Future Compliance Report. On or before September I, 2006, PSEG shall submit a

repon in writing to the Commissioner, as directed in paragraph C.29. of this

Trading Agreement and Order, indicating how the facility shall comply with

section 22a-174-22 of the Regulations with respect to the boiler on and after May

1,2007.

All other tenns and conditions of Trading Agreement and Order no. 8241 issued by the

.Commissioner acting under Chapter 446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 of the Connecticut General Statutes shall remain in effect.
PSEG Power Connecticut LLC 4 Trading Agreement and Order

No:8241 Modification No. I

PSEG hereby consents (Q the entry of this modification to the Trading Agreement and Order

without further notice.

PSEGPower~

SIgnature: ."

-"'") '.

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Type Name:

Type Title:

Date:

Robert T. Parnell

Director of Asset Operations

Septecber 2. 2004

MAilED CERIlFIED MAll.,

RETURN RECEIPT REQUESTED

Certified Document No.