STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

State of Connecticut

&

FirstLight Hydro Generating Company

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Trading Agreement &

Order No. 8303

WHEREAS, the Commissioner of Environmental Protection ("Commissioner") and FirstLight Hydro

Generating Company ("Respondent") agrees that the Commissioner may issue a permit or order to allow

emissions trading in accordance with Section 22a-174-22Q) ofthe Regulations of Connecticut State

Agencies ("Regulations") as a method of compliance with Section 22a-174-22 ofthe Regulations:

A. At the request and with the agreement of Respondent, the Commissioner finds the following:

I. This Trading Agreement and Order supersedes Trading Agreement and Order 8279 and all

subsequent modilications thereto.

2. Respondent is a corporation that owns and/or operates an electricity generation facility at

Tunnel Road, in Preston, Connecticut ("facility").

3. At the facility, Respondent operates the emission unit described in Table I below, which is

subject to Section 22a-174-22 of the Regulations ofConnecticut State Agencies

("Regulations") pertaining to the control of Nitrogen Oxide (NOx) emissions.

4. For the purposes of this Trading Agreement and Order, the following delinitions shall apply:

a. Allowable Emission Limit (AEL): the applicable NOx emission limit set forth

in Section 22a-174-22(e) or Section 22a-l 74-22(1) ofthe Regulations

corresponding to the emission unit described in Table 1 ofthis Trading

Agreement and Order

b. Allowance: CAIR NOx Ozone Season allowance originally allocated to a

CAIR NOx Ozone Season unit, as defined in Section 22a-174-22c ofthe

Regulations, located in the State ofConnecticut or a NOx allowance

designated specifically for compliance during Ozone Season control periods

and allocated to a CAIR NOx Ozone Season unit located in the State of

Connecticut after the date of issuance ofthis Trading Agreement and Order.

c. CAIR NOx Ozone Season unit: shall be as defined in Section 22a-174-22c of

the Regulations

(Printed on Recycled Paper)

79 Elm Street _ Hartford. CT 06106-5127

www.cLgov/dcp

All Equal Opportunity Employer
FirstLight Hydro

Generating Company

2 Trading Agreement &

Order No. 8303

d. Discrete Emission Reduction Credit (DERC): a unit that was generated and

approved by the Commissioner in accordance with a Trading Agreement and

Order issued by the Commissioner or generated and approved by the

Commissioner in accordance with a protocol submitted and approved pursuant

to Section 22a-I74-38 ofthe Regulations. Such unit is equivalent to I ton of

NOx emissions and may be used for emissions trading in accordance with

Section 22a-I74-22U) ofthe Regulations, subject to the provisions of Part B of

this Trading Agreement and Order.

e. CAIR NATS: "CAIR NO, Ozone Season Allowance Tracking System" as

defined in 40 CFR 96.302.

f. Non-Attainment Area: means the geographic area which has been designated

as nonattainment pursuant to 40 CFR 81 in accordance with the provisions of

42 USC 7407 (Section 107 ofthe Act). Pursuant to 40 CFR 81.307, the

designated ozone non-attainment areas in the State ofConnecticut are: the

Greater Connecticut, CT area and the New York-Northern New Jersey-Long

Island, NY-NJ-CT area.

g. Ozone Season: May I through September 30 of each calendar year or such

period as defined by the U.S. Environmental Protection Agency, subsequent to

the issuance of this Trading Agreement and Order.

h. Non-Ozone Season: the period of consecutive calendar months between two

successive Ozone Seasons.

Table 1

CAlK NOx Ozone Season Units

NOx Emission Rates, FLERs and Allowable Limits (IbsIMMBtu, unless otherwise Doted)

UNIT- FLER in Allowable AEL Stack Test Stack Date of Date of

reg. or Fuel Ibs/mmbtu Emission in ppmvd Rate in test Last Next Stack

permit Limit IbslMMBtu rate in Stack Test

no. (AEL) in ppmvd Test

Ibs/mmbtu

Tunnel other 0.72 .29 75 0.698 119.6 3/29/2006 3/29/2011

Road- oil

Preston

10

5. The Respondent agrees that the actual NOx emissions rate from the emission unit

described in Table 1, at times, exceeds the corresponding AEL.

6. Pursuant to Section 22a-174-22(j) ofthe Regulations, Respondent proposes to comply

with Section 22a-174-22(e) ofthe Regulations, when operating the emission unit

described in Table 1 by means of emissions trading in accordance with the provisions of

this Trading Agreement and Order.
FirstLight Hydro

Generating Company

3 Trading Agreement &

Order No. 8303

7. The Respondent proposes to use the full load emission rate ("FLER") identified in Table 1

for the purposes of calculating Actual DERCs/Allowances Required.

The Commissioner, in accordance with Section 22a-174-22(j) of the Regulations hereby allows

Respondent to comply with Section 22a-174-22 ofthe Regulations at the facility through the use

of emissions trading, subject to the provisions ofthis Trading Agreement and Order.

8. With the agreement ofRespondent, the Commissioner, acting under Sections 22a-6, 22a-174, 22a176, and 22a-l77 ofthe Connecticut General Statutes, hereby orders Respondent as follows:

I. Expiration ofthis Trading Agreement and Order: The Respondent may only use emissions

trading, subject to the provisions ofthis Trading Agreement and Order, until the date of

expiration ofthis Trading Agreement and Order. The date of expiration ofthis Trading

Agreement and Order shall be the earlier of:

a. May31,2014;

b. The date upon which the Respondent demonstrates to the Commissioner's

satisfaction that actual NOx emissions from the emission unit, at all times,

does not exceed the corresponding AEL(s);

c. The date specified in any written notice from the Commissioner stating that the

Respondent is no longer allowed to use emissions trading due to the

Respondent's violation of any provision ofthis Trading Agreement and Order;

or

d. The date specified in any written notice from the Commissioner, notifying the

Respondent that the Commissioner has determined the use of emissions trading

as a compliance option has been further restricted, modified or nullified by:

(i) the promulgation of an Act, Statute, or Regulations; or

(ii) the issuance of a judgment or court order.

2. Respondent shall obtain and use sufficient DERCs and/or Allowances in such a manner as to

comply with Paragraphs 8.8 and 8.9 ofthis Trading Agreement and Order. All Allowances

used must come from an emission unit that is within the same ozone nonattainment area as the

Respondent. Any Allowances used to comply with this Trading Agreement and Order must

be allocated for the control period that occurs during the same year those allowances are used

for compliance with this Trading Agreement and Order. All DERCs used during the Ozone

Season for each emissions unit described in Table I, shall have been generated during an

Ozone Season.

3. Prior to using Allowances in accordance with Paragraphs 8.8 and 8.9 of this Trading

Agreement and Order the Respondent shall obtain a General and/or Compliance Account in

the CArR NATS.
FirstLight Hydro

Generating Company

4 Trading Agreement &

Order No. 8303

4. Vintage Restriction. For the purposes ofcompliance with Section 22a-174-22 of the

Regulations and the provisions ofthis Trading Agreement and Order, DERCs shall only

remain valid for five (5) calendar years from the year ofthe generation ofsuch DERCs.

DERCs older than five (5) calendar years from their creation are not valid for use for

compliance with Section 22a-174-22 ofthe Regulations and the provisions ofthis Trading

Agreement and Order.

5. Respondent shall not cause or allow actual NOx emissions from the operation ofthe emission

units described in Table I ofthis Trading Agreement and Order to exceed the corresponding

FLERs. Compliance with the corresponding FLERs specified in Table I shall be determined

based on the results of emissions testing performed in accordance with Section 22a-174-22 of

the Regulations or NOx emissions monitored and recorded by a continuous emissions

monitoring system that was approved by the Commissioner and that complies with Section

22a-174-4 ofthe Regulations and either 40 CFR 60, Appendices B&F or 40 CFR 75.

6. Ozone Season Fuel Use Restriction: Notwithstanding the provisions of Paragraph B.2 of this

Trading Agreement and Order, when operating the emission unit described in Table I during

the Ozone Season, the Respondent shall operate that unit while firing or co-firing the lowest

NOx emitting fuel type or combination offuel types that the units are authorized to bum in

accordance with Departmental permit, registration, or applicable regulation.

7. Notwithstanding Paragraph B.6 ofthis Trading Agreement and Order, during the Ozone

Season, the Respondent may operate the emission units described above on fuels that result in

higher emissions of NOx, if either:

a. the availability offuel oil that complies with Paragraph B.6 is inadequate to meet

the needs ofresidential, commercial and industrial users in this state and that such

inadequate supply constitutes an emergency; or

b. the supply of gaseous fuels to the emission units is interrupted due to inadequate

supply or in accordance with an interruptible supply agreement between the

Respondent and the gaseous fuel supplier.

8. DERC/Allowance Use. On the first day of each calendar month, the Respondent shall possess

a quantity of DERCs and/or Allowances that equals or exceeds the quantity ofActual DERCs

Required and/or Actual Allowances Required in that month. Compliance with Paragraph B.8

ofthis Trading Agreement and Order shall be determined as follows:

a. Before the first day of each month, Respondent shall estimate DERCs and/or

Allowances required for such calendar month for the emission unit described in

Table I as follows:

Estimated DERCs/Allowances Required =

{(Estimated fuel use in MMBtu) x «FLER lb/mmbtu) - (0.95 x AEL))}+2000 Ibs/ton
FirstLight Hydro

Generating Company

Where:

5 Trading Agreement &

Order No. 8303

• AEL = Allowable Emission limit, as defined in Paragraph AA ofthis

Trading Agreement and Order

• Discount (0.95) = 5% design margin applied to the AEL.

b. No later than the twentieth day of each month, Respondent shall calculate actual

DERCs and/or Allowances used in the preceding calendar month for the emission

unit described in Table I as follows:

Actual DERCslAllowances Required =

{(Monthly fuel use MMBtu) x «FLER lb/mmbtu) - (0.95 x AEL))} + 2000 Ibs/ton

9. Non-Ozone Season DERC/Allowance Use. In addition to the requirements of Paragraph B.8

ofthis Trading Agreement and Order, on the first day of each Non-Ozone Season, the

Respondent shall possess a quantity of DERCs and/or Allowances that equals or exceeds the

quantity of Non- Ozone Season Actual DERCs/Allowances Required for that Non-Ozone

Season. Compliance with Paragraph B.9 ofthis Trading Agreement and Order shall be

determined as follows:

a. Before the first day of each Non-Ozone Season, Respondents shall estimate

DERCs and/or Allowances required for that Non-Ozone Season for the emission

unit described in Table I based on the average actual NOx emission rate from the

emission unit and an emission limit of 0.15 lb/mmbtu as follows:

Estimated Non-Ozone Season DERCs/Allowances Required =

{(Estimated Non-Ozone Season fuel use in MMBtu) x «FLER lb/mmbtu) - (0.95 x

O.l5lb/mmbtu))} + 2000 lbs/ton-L( Estimated DERCS and/or Allowances

Required for all months ofthe Non-Ozone Season calculated pursuant to

Paragraph B.8)

b. No later than thirty (30) days after the end of each Non-Ozone Season, the

Respondents shall calculate Actual Non-Ozone Season DERCs and/or Allowances

used during that Non-Ozone Season for each emission unit as follows:

Actual Non-Ozone Season DERCslAllowances Required =

{(Actual Non-Ozone Season fuel use in MMBtu) x «FLER lb/mmbtu) - (0.95 x

0.15Ib/mmbtu))} + 2000 lbs/ton- L( DERCS and/or Allowances Required for all

months of the Non-Ozone Season calculated pursuant to Paragraph B.8)
FirstLight Hydro

Generating Company

6 Trading Agreement &

Order No. 8303

10. On or before January 31, of each calendar year, the Respondent shaH deduct a quantity of

DERCS from the current balance ofDERCs possessed by the Respondent and/or transfer a

quantity of AHowances from the Respondent's NOx General and/or Compliance Accounts to

the CT State NOx Retirement Account (Account 1D CT0000000300 in the CAIR NATS) such

that the total is equal to the sum of Actual DERCs/AHowances Required pursuant to

Paragraph 8.8 of this Trading Agreement and Order for the preceding calendar year, rounded

up to the nearest whole ton.

II. Not more than ninety (90) days after the completion ofthe Non-Ozone Season, the

Respondent shaH deduct a quantity of DERCS from the current balance ofDERCs possessed

by the Respondent and/or transfer a quantity of Allowances from the Respondent's NOx

General and/or Compliance Account to the CT State NOx Retirement Account (Account ID

CT0000000300 in the CAIR NATS) such that the total is equal to Actual Non-Ozone Season

DERCs/Aliowances Required for the most recently completed Non-Ozone Season.

Notwithstanding the control period limitations of Paragraph 8.2 ofthis Trading Agreement

and Order, Allowances used to comply with this Paragraph for a Non-Ozone Season must

have been originally allocated for the control periods that correspond to the same calendar

years within that Non-Ozone Season.

12. Doubling: If the Actual DERCs/Allowances Required for any month, determined in

accordance with Paragraph 8.8, exceeds the quantity of DERCs and/or Allowances in the

Respondent's possession on the first day ofthat month, then in addition to the deduction or

transfer specified in Paragraph B.I 0, the Respondent shall also deduct a quantity ofDERCs

from the current balance of DERCs possessed by the Respondent and/or transfer a quantity of

Allowances from the Respondent's NOx General and/or Compliance Account to the CT State

NOx Retirement Account (Account 1D CT0000000300 in the CAIR NATS) such that the total

is equal to Actual DERCs/Allowances Required for that month. Such additional DERC

deduction or Allowance transfer shall be performed at the same time as the DERC deduction

or Allowance transfer specified in Paragraph 8.10 ofthis Trading Agreement and Order.

If the Actual DERCs/Allowances Required for any Non-Ozone Season, determined in

accordance with Paragraph 8.9, exceeds the quantity ofDERCs and/or Allowances in the

Respondent's possession on the first day ofthe Non-Ozone Season, then in addition to the

deduction or transfer specified in Paragraphs 8. II, the Respondent shall also deduct a quantity

of DERCs from the current balance ofDERCs possessed by the Respondent and/or transfer a

quantity of Allowances from the Respondent's NOx General and/or Compliance Account to

the CT State NOx Retirement Account (Account 1D CT0000000300 in the CAIR NATS) such

that the total is equal to Actual Non-Ozone Season DERCs/Allowances Required for the most

recently completed Non-Ozone Season. Such additional DERC deduction or Allowance

transfer shall be performed at the same time as the DERC deduction or Allowance transfer

specified in Paragraph 8.1 I of this Trading Agreement and Order.

Notwithstanding the provisions of Paragraph B.l2 ofthis Trading Agreement and Order, any

violation of Paragraphs 8.8 and 8.9 of this Trading Agreement and Order may be subject to

additional enforcement action as may be deemed appropriate by the Commissioner in

accordance with the Department's enforcement response policy.
FirstLight Hydro

Generating Company

7 Trading Agreement &

Order No. 8303

13. No later than December 31 Sl of each year, Respondent shall deduct an additional quantity of

ozone season DERCs from the current balance ofDERCs possessed by the Respondent and/or

transfer an additional quantity ofAllowances from the Respondent's NOx General and/or

Compliance Account to the CT State NOx Retirement Account (Account ID CT0000000300

in the CAIR NATS) such that the total ofDERCS/Allowances deducted and/or transferred in

accordance with this Paragraph is equal to:

6 x L{(Actual Daily Fuel Use in MMBtu) x «FLER) - (0.95 x AEL))} +2000 lbs/ton

Where actual daily fuel use pertains to operation ofTable I emissions units on

days that the Connecticut eight hour ozone levels were forecasted to be "moderate

to unhealthy for sensitive groups", "unhealthy for sensitive groups", "unhealthy",

or "very unhealthy" during the previous Ozone Season.

14. At the end of each calendar year, the Respondent shall demonstrate that any Allowances used

for compliance with this Trading Agreement and Order during the year are surplus,

quantifiable, enforceable and permanent. This shall be determined by demonstrating that the

actual NOx emissions during the ozone season, as reported to the United States Environmental

Protection Agency, from the emission unit to which the Allowances were originally allocated

were equal to or less than the amount ofAllowances allocated to such unit by the State of

Connecticut minus the Allowances used for compliance with this Trading Agreement and

Order.

15. Maintenance and Tune-up. Not more than I year from the date ofissuance ofthis Trading

Agreement and Order, the Respondent shall perform maintenance and inspection ofthe

emission unit listed in Table I. Such maintenance and inspection shall include, but not be

limited to, the following:

a. Inspect the combustion system, and clean or replace any components ofthe

combustion system as necessary, in accordance with manufacturer's specification

or current good engineering practice;

b. Inspect the system controlling the air-to-fuel ratio, and ensure that it is calibrated

and functioning in accordance with the manufacturer's specifications or current

good engineering practice;

c. Measure the operating parameters ofthe emission unit used to determine that the

emission unit is operating in accordance with manufacturer's specification or

current good engineering practice prior to and after any adjustments are made

during maintenance, tune-up, or inspection activity;

d. Make and keep records including, but not limited to, the following:

I. Demonstration that any maintenance, tune-up, and/or inspection

activity performed on the emission unit described in Table I in

accordance with Paragraph B.15 ofthis Trading Agreement and Order
FirstLight Hydro

Generating Company

8 Trading Agreement &

Order No. 8303

16. Record Keeping;

has been performed in accordance with the manufacturer's

specifications or current good engineering practice,

11. The date and a description of any maintenance, tune-up, and/or

inspection activity performed on the emission unit described in Table I

in accordance with Paragraph RI5 of this Trading Agreement and

Order,

III. The name, title and affiliation ofthe person conducting any

maintenance, tune-up, and/or inspection activity performed on the

emission unit described in Table I in accordance with Paragraph B.15

ofthis Trading Agreement and Order,

IV. The operating parameters ofthe emission unit used to determine that

the emission unit is operating in accordance with manufacturer's

specification or current good engineering practice prior to and after any

adjustments are made during maintenance, tune-up, or inspection

activity performed in accordance with Paragraph RI5 ofthis Trading

Agreement and Order.

a. By the close of each calendar day, the Respondent shall record the actual

fuel type and the actual quantity of each type offuel in units of volume per

day or MMbtu per day for each fuel used on the preceding day in an

emission unit described in this Trading Agreement and Order;

b. On or before the first day of each calendar month, the Respondent shall

record the number of DERCs and corresponding serial numbers and

vintages for all DERCs in its possession on the first calendar day ofthat

calendar month,

c. On or before the first day of each calendar month, the Respondent shall

record the number of Allowances and corresponding identification numbers

and allocation control periods for all Allowances in its possession on the

first calendar day ofthat calendar month,

d. On or before the first day of each calendar month, the Respondent shall

record the number ofDERCs and corresponding serial numbers, vintages,

purchase/sales dates, and sellerlbuyer for all DERCs purchased or sold

during the preceding calendar month,

e. On or before the first day of each calendar month, the Respondent shall

record the number ofAllowances and corresponding identification

numbers, purchase/sales dates, allocation years, and sellerlbuyer for all

Allowances purchased or sold during the preceding calendar month,
FirstLight Hydro

Generating Company

9 Trading Agreement &

Order No. 8303

f. On or before the first day of each calendar month, the Respondent shall

record the Estimated DERCs/Allowances Required for that calendar month

determined in accordance with Paragraph B.8 of this Trading Agreement

and Order. .

g. On or before the twentieth calendar day of each calendar month, the

Respondent shall record the Actual DERCs/Aliowances Required for the

preceding calendar month determined in accordance with Paragraph B.8 of

this Trading Agreement and Order;

h. On or before January 31 of each calendar year, the Respondent shall record

the quantity ofDERCs deducted in accordance with Paragraphs B.I0 and

B.12 ofthis Trading Agreement and Order for the preceding year. Such

records shall include the serial number and vintage of each DERC deducted

from the Respondents current balance pursuant to Paragraphs B.1O and

B.12 ofthis Trading Agreement and Order.

I. On or before January 31 of each calendar year, the Respondent shall record

the quantity of Allowances transferred in accordance with Paragraphs B.IO

and B.12 ofthis Trading Agreement and Order. Such records shall include

the identification number and allocation control period of each Allowance

transferred pursuant to Paragraphs B.I 0 and B.12 ofthis Trading

Agreement and Order.

J. Not more than ninety (90) days after the completion of each Non-Ozone

Season, the Respondent shall record the Non-Ozone Season average NOx

emission rate for the emission unit described in Table I, the quantity of

DERCs and/or allowances possessed on the first day ofthe Non-Ozone

Season, and the quantity of DERCs deducted and/or Allowances transferred

in accordance with Paragraphs B.II and B.12 ofthis Trading Agreement

and Order.

k. For each month of the Ozone season, the Respondent shall maintain records

attesting to the fact that any DERCs deducted from its balance in

accordance with Paragraphs B.I0 and B.12 ofthis Trading Agreement and

Order satisfy the requirements of Paragraph B.2. Generator certification of

this fact shall be sufficient.

1. On each day during the ozone season that the Respondent operates in

accordance with Paragraph B.7 of this Trading Agreement and Order, the

Respondent shall make and keep Records of all emission unit operation in

accordance with Paragraph B.7 ofthis Trading Agreement and Order,

including copies of any written correspondence from the Respondent's fuel

supplier detailing the duration and circumstances ofthe inadequate fuel oil

supply or interruption of gaseous fuel supply to the emission units.
FirstLight Hydro

Generating Company

10 Trading Agreement &

Order No. 8303

17. Respondent shall retain records and supporting documentation required by this Trading

Agreement and Order for a minimum offive years, commencing on the date such records

were created. Respondent shall provide the records specified above to the Commissioner

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

shall be maintained in accordance with Sections 22a-174-4 and 22a-174-22 ofthe

Regulations.

18. Reporting: No later than March I of every year after issuance of this Trading Agreement and

Order, the Respondent shall submit to the Commissioner a written report containing copies of

all ofthe records required pursuant to Paragraphs B.16.a - B.16.i, and B.16.k- B.16.l ofthis

Trading Agreement and Order. Not later than July 30 of each calendar year, the Respondent

shall submit a written report containing copies of all records required pursuant to Paragraph

B.16.j ofthis Trading Agreement and Order. The Commissioner may prescribe the forms to

be used for the submission ofthese reports. The Respondent shall submit these reports on

such forms, if prescribed by the Commissioner.

19. FLER Violation. Violation of an established FLER shall subject Respondent to make

restitution by matching the quantity of emissions ("true up") caused by the exceedance plus a

100% premium. The true up in tons ofDERCs or Allowances shall be equal to the FLER

exceedance in IbslMMBtu, multiplied by the total heat input during the period of

noncompliance divided by 2000 lbs/ton. Ifthe period of noncompliance is not known, the

time period from the completion ofthe last/previous Department witnessed emission test

through the date that FLER compliance is achieved as approved by the Commissioner shall

be used. Notwithstanding this requirement, exceedance of any FLER contained in Table I is

a violation in Paragraph B.5 ofthis Trading Agreement and Order subject to enforcement

action in accordance with the Department ofEnvironmental Protection's Enforcement

Response Policy, in effect at the time ofsuch violation.

20. FLER Modification. FLERs set forth in Table I of this Trading Agreement and Order may

be modified only after the consent ofthe Commissioner by written modification of this

Trading Agreement and Order.

21. Emissions Testing. The Respondent shall perform emissions testing in accordance with

Section 22a-174-22(k) ofthe Regulations for each emission unit described in Table I ofthis

Trading Agreement and Order that is not equipped with a continuous emissions monitoring

system that was approved by the Commissioner and that complies with Section 22a-174-4 of

the Regulations and either 40 CFR 60, Appendix B&F or 40 CFR 75.

22. Control Technology Evaluation: Not more than 9 months from the date ofissuance of this

Trading Agreement and Order, the Respondent shall submit a control technology evaluation

for the emissions units described in Table I to reduce emissions of NOx to, at a bare

minimum, a rate or concentration that complies with the applicable limits of Section 22a-174-

22 of the Regulations as may be amended, without using, tendering, or otherwise acquiring

Allowances or DERCs. Such evaluation shall include but not be limited to the following:

a. A detailed description of the subject emissions unit, currently installed

emissions controls equipment and methods, all currently installed emissions

monitoring systems;
FirstLight Hydro

Generating Company

II Trading Agreement &

Order No. 8303

b. A detailed description of any and all additional or alternative emissions

control equipment and methods or, combinations thereof, that are capable of

reducing NOx emissions from the subject emissions unit to, at a bare

minimum, a rate or concentration that complies with the applicable limits of

Section 22a-174-22 ofthe Regulations as may be amended, without using,

tendering, or otherwise acquiring Allowances or DERCs;

c. An evaluation of capital costs, annual operating costs, and total annualized

$/ton costs associated with the installation and operation of any and all

additional or alternative emissions control equipment and methods, or

combinations thereof, that are capable ofreducing NOx emission from the

subject unit to, at a bare minimum, a rate or concentration that complies with

the applicable limits ofSection 22a-174-22 ofthe Regulations as may be

amended, without using, tendering, or otherwise acquiring Allowances or

DERCs;

d. An estimated schedule for the design, procurement, installation and operation

of any additional or alternative emissions control equipment and methods, or

combinations thereof, that are capable ofreducing NOx emission from the

subject unit to, at a bare minimum, a rate or concentration that complies with

the applicable limits of Section 22a-174-22 ofthe Regulations as may be

amended, without using, tendering, or otherwise acquiring Allowances or

DERCs;

e. A detailed description of any adjustments and/or modifications that must be

made to the emissions monitoring systems for the subject emission unit in

order to demonstrate compliance with, at least, Section 22a-174-22 ofthe

Regulations as may be amended, without using, tendering, or otherwise

acquiring Allowances or DERCs; and

f. A detailed description of any collateral environmental impacts that will result

as a direct consequence ofthe Respondent's use of additional/alternative

emissions control equipment and methods to reduce NOx emissions to, at a

bare minimum, a rate or concentration that complies with the applicable limits

of Section 22a-174-22 ofthe Regulations as maybe amended, without using,

tendering, or otherwise acquiring Allowances or DERCs.

23. Full compliance. Respondent shall not be considered in full compliance with this Trading

Agreement and Order until all actions required by this Trading Agreement and Order have

been completed as approved and to the Commissioner's satisfaction.

24. Approvals. Respondent shall use best efforts to submit to the Commissioner all documents

required by this Trading Agreement and Order in a complete and approvable form. If the

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

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

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 ofthe Commissioner's notice

of deficiencies. In approving any document or other action under this Trading Agreement
FirstLight Hydro

Generating Company

12 Trading Agreement &

Order No. 8303

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 ofthis Trading Agreement and Order. Nothing in this paragraph shall

excuse noncompliance or delay.

25. Definitions. As used in this Trading Agreement and Order "Commissioner" means the

Commissioner or a representative ofthe Commissioner; The date of "issuance" ofthis

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.

26. Dates. The date ofsubmission 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 date 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 be

submitted or performed 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.

27. Certification of documents. Any document, including but not limited to any notice, which is

required to be submitted to the Commissioner under this Trading Agreement and Order shall

be signed by the Respondent or, if Respondent is not an individual, by an individual,

employed by the Respondent, who satisfies the criteria set forth in Section 22a-174-2a(a)(I)

ofthe Regulations of Connecticut State Agencies and by the individual(s) responsible for

actually preparing such document. Each individual who signs documents in accordance with

this Paragraph shall certif'y in writing as follows:

"I have personally examined and am familiar with the information submitted in this

document and all attachments thereto, and 1certify, 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. 1understand that any false statement made in the submitted information may be

punishable as a criminal offense under Section 53a-157b ofthe Connecticut General

Statutes and any other applicable law."

28. 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

Respondent to an injunction and penalties.

29. False statements. Any false statement in any information submitted pursuant to this Trading

Agreement and Order may be punishable as a criminal offense under Section 53a-157b ofthe

Connecticut General Statutes and any other applicable law.
36. No Creation ofPropertv Rights. This Consent Order does not create any property rights with

respect to these DERCs or Allowances.

32. Respondent's obligations under law. Nothing in this Trading Agreement and Order shall

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

35. No effect on rights of other persons. This Trading Agreement and Order neither creates nor

affects any rights of persons or municipalities that are not parties to this Trading Agreement

and Order.

Trading Agreement &

Order No. 8303

13

34. Access to premises. Any representative of the Department ofEnvironmental Protection may

enter the without prior notice for the purposes ofmonitoring and enforcing the actions

required or allowed by this Trading Agreement and Order.

37. Notice to Commissioner of changes. Within 15 days ofthe date Respondent becomes aware

of a change in any information submitted to the Commissioner under this Trading Agreement

and Order, or that any such information was inaccurate or misleading or that any relevant

information was omitted, Respondent shall submit the correct or omitted information to the

Commissioner.

33. No assurance by 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 Respondent pursuant to this Trading Agreement and

Order will result in compliance or prevent or abate pollution.

31. 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, or future violations oflaw. If at any time

the Commissioner determines that the actions taken by Respondent 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 Respondent to undertake further

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

30. Notice oftransfer; liability of Respondent. Until Respondent has fully complied with this

Trading Agreement and Order, Respondent shall notifY the Commissioner in writing no later

than 15 days after transferring all or any portion ofthe facility, the operations, the site or the

business which is the subject ofthis Trading Agreement and Order or after obtaining a new

mailing or location address. Respondent's obligations under this Trading Agreement and

Order shall not be affected by the passage oftitle to any property to any other person or

municipality.

FirstLight Hydro

Generating Company
FirstLight Hydro

Generating Company

14 Trading Agreement &

Order No. 8303

38. Notification of noncompliance. In the event that Respondent becomes aware that it did not or

may not comply, or did not or may not comply on time, with any requirement ofthis Trading

Agreement and Order or of any document required hereunder, Respondent shall immediately

notifY by telephone the individual identified in the next paragraph and shall take all

reasonable steps to ensure that any noncompliance or delay is avoided or, ifunavoidable, is

minimized to the greatest extent possible. Within five (5) days ofthe initial notice,

Respondent 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 Respondent shall

comply with any dates which may be approved in writing by the Commissioner. Notification

by Respondent 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.

39. 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:

Supervisor

Administrative Enforcement Group

Engineering and Enforcement Division

Bureau of Air Management

Department of Environmental Protection

79 Elm Street, 5

th Floor

Hartford, Connecticut 06106

(860) 424-3702
Trading Agreement &

Order No. 8303

15

Certified Document

TOWN OF PRESTON LAND RECORDS

MAILED CERTIFIED MAlL,

RETURN RECEIPT REQUESTED

BUREAU OF AlR MANAGEME

NEW SOURCE REVIEW I TIn.J!.

APR 29 20m

FirstLight Hydro

Generating Company

Issued as a final consent order ofthe Commissioner ofthe Department of Environmental Protection.

Type Title: Vice President

Date: 4/::<W/I 0

Respondent 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 Respondent to the terms and conditions ofthe Trading Agreement and Order.

FirstLight Hydro

Generating Company