SIP DESCRIPTION PSEG Power ConnecticutLLC Tradine Aereement and Order No. 8241 Modification 1 

### J. SIP

- DESCRIPTION OF DERC CREATION AND/OR VSE SIP SUMMARYTABLE 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 

# I Section 22a-174-22 ofthe 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 TimePeriod Vn,il Apri130, 2007. Max. Emission Rate: full load emission rate (FLER) Use. (See Table 1below):

Table 1 NOx Emission Rates and Allowable Limits Vnit Fuel 

### Maximum StackTest 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 OrderModification supersedes Trading Agreement and Order No. 8241 issued on April 22, 2003. b. Calculations ofcredits used or generated shaH be as specified in Trading Agreement and Order No. 824I.
c. Slartingon October I, 2003 and until April 30, 2007 during the non-ozone season PSEG Power Connecticut LLC shall meet anon-ozone season emission limit of 0.15 

### IbsIMMBtu ofheat input when operating on all fuels.

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# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICur AND· PSEG POWER CONNECTICurliC TRADING AGREEMENT AND ORDER NO. 8241 MODIFICATION NO.1
TRADING AGREEMENT AND ORDER MODIFICATION 

### In lhe maner ofaTrading Agreement and Orderbetween the CommissionerofEnvironmental Protection ("Commissioner") and PSEG PowerConnecticutliC (''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 Orderas 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. 

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# , 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 ofeach month, PSEG shall calculate projected worst case DERCs required for that calendarmonth as follows: Estimated DERCs (tons) 

### = {[estimatedworst case NOx emission rate in IbslMMBtu

- «0.95) x (NOx allowable limit orproportioned emission,rate calculatedpursuant to Section 22a-174-22(f)(2)(A) ofthe Regulations in IbslMMBtu»] x (Estimated fuel use in MMBtu)}
... 2000 pounds/ton. 

### No later than the twentieth day 

### ofeach month, PSEG shall calculate and permanently retire DERCs used in the preceding calendarmonth, as follows: (i) 

### Forthe boileron each day, 

### determine whetherthe 24-houraverage NOx emission rate'" is less than the baseline emission rate or greater [han the NOx allowable limit. (ii) 

### When the boilerhas adaily NOx emission rate (24-hour average) (Prilmd 00 Rel:'ycled Paper) 79 Elm Street • HUllord, CT 06106 - S127 hIIp:/fdep.SIIIe.tl.us An Equal Opponuflily EmployuPSEG PowerConnecticut liC 2 

### Trading Agreement and Order No. 8241 Modification No. I



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## ,. , • J \..j 4. 

### exceeding the NOx allowable limit, calculate the amount ofDERCs 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) ofthe 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 1through April 3D, 

### inclusive, each year until May 1,2007, the boilershall, in addition to meeting the 24-hour emission 

### limitin
. Table 22-1 ofSection 22a-174-22 ofthe Regulations, meetanon-ozone season emission limit of0.15 IblMMBtu. Priorto October I. 2003. October I. 2004. October I. 2005. and October I. 2006. PSEG shall estimate and acquire the 

### amount ofnon-ozone season DERCs or allowances needed to comply with Section 22a-174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in MMBtu from October I through 

### April 30 x (lower ofthe 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 of2004. 2005. 2006. and 2007. in addition to the DERCs retired pursuant to paragraph C.7.a. ofthis 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 ofthe 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 notin PSEG's possession for use prior to the fIrst day ofeach month or applicable season. However, nothing in this Trading Agreement and Ordershall affect the Commissioner's authority [0 

### institute any proceeding ortake 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 oflaw. PSEG shaU pennanently retire the quantity ofemissions caused by the exceedance plus a 100% premium within sixty (60) days ofPSEG's discovery ofthe DERC shortfall. PSEG shall certify 

### and repon any such DERC retirementto the Commissionerin accordance with paragraph C.28 ofthis 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 Octoberthrough 

### April time period only starting in 2003) ofevery year after issuance ofthis Trading Agreement and Order, PSEG shall provide to the Commissioner, arecord ofeach sale or othertransfer, and use ofany.and all oftheDERCs approved 

### within and subsequentto issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longer in PSEG's possession. PSEG shall 

### also include acrual NOx emissions from the boilerand the amount ofall DERCs used (including serial numbers (ifassigned) and approvedDERCs generated 

### and/or purchased from otherfacilities), generated and/or approved forthe previous calendar year and Octoberthrough April time period. These reports shall be 

### on afonn prescribed by the Commissionerand shall be in monthly increments, and by ozone and non-ozone seasons. Include a new paragraph C.30. as follows: Extension. No laterthan May I, 2007, with respect to the boiler, PSEG shall comply with the requirements ofSections 22a-174-22(d)(I) and 22a-174- 22(d)(2)(A) ofthe Regulations. There is no assurance that afterfull program 

### review ofthis and otherTrading Agreements and Orders that the Commissioner will grant awritten extension ofthis Trading Agreement and Order. 7. Include a new paragraph C.31. as follows: Future Compliance Report. On orbefore September I, 2006, PSEG shall submit a 

### repon in writing to the Commissioner, as directed in paragraph C.29. ofthis Trading Agreement and Order, indicating how the facility shall comply with 

### section 22a-174-22 ofthe Regulations with respect to the boileron and afterMay 1,2007. 

### All other tenns and conditions ofTrading Agreement and Orderno. 8241 issued by the .Commissioneracting underChapter446c, 

### Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 ofthe Connecticut General Statutes shall remain in effect.

### PSEG Power ConnecticutLLC 4 

### Trading Agreement and Order No:8241 Modification No. I 

### PSEG herebyconsents (Q 

### the entry ofthis 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 DocumentNo.