# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

State ofConnecticut & 

### FirstLight Hydro Generating Company ) ) 

### ) ) ) 

### Trading Agreement & 

### OrderNo. 8303

WHEREAS, the Commissioner ofEnvironmental 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 ofConnecticut State Agencies ("Regulations") as a method ofcompliance with Section 22a-174-22 ofthe Regulations:

A. At the request and with the agreement ofRespondent, 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 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNitrogen Oxide (NOx) emissions.
4. For the purposes ofthis 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 ofissuance 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 EmployerFirstLight Hydro Generating Company 

### 2 Trading Agreement & OrderNo. 8303

d. Discrete Emission Reduction Credit (DERC): a unit that was generated and approved by the Commissionerin accordance with a Trading Agreement and Orderissued bythe 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 maybe used for emissions trading in accordance with Section 22a-I74-22U) ofthe Regulations, subjectto the provisions ofPart B of this Trading Agreement and Order.

e. CAIR NATS: "CAIRNO, 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 nonattainmentpursuantto 40 CFR 81 in accordance with the provisions of 42 USC 7407 (Section 107 ofthe Act). Pursuantto 40 CFR 81.307, the designated ozone non-attainment areas in the State ofConnecticut are: the Greater Connecticut, CT area and the New York-NorthernNew Jersey-Long Island, NY-NJ-CT area.
g. Ozone Season: May I through September 30 ofeach calendaryear or such period as defined by the U.S. Environmental Protection Agency, subsequentto the issuance ofthis Trading Agreement and Order.
h. Non-Ozone Season: the period ofconsecutive calendarmonths 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 StackTest 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. Pursuantto Section 22a-174-22(j) ofthe Regulations, Respondent proposes to comply with Section 22a-174-22(e) ofthe Regulations, when operating the emissionunit described in Table 1 by means ofemissions 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 ofcalculating Actual DERCs/ Allowances Required.
The Commissioner, in accordance with Section 22a-174-22(j) ofthe Regulations hereby allows Respondent to comply with Section 22a-174-22 ofthe Regulations at the facility through the use ofemissions 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, subjectto the provisions ofthis Trading Agreement and Order, until the date of expiration ofthis Trading Agreement and Order. The date ofexpiration 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 ofany provision ofthis Trading Agreement and Order;
or
d. The date specified in any written notice from the Commissioner, notifying the Respondent that the Commissionerhas determined the use ofemissions trading as a compliance option has been further restricted, modified ornullified by: (i) the promulgation ofan Act, Statute, orRegulations; or (ii) the issuance ofajudgment 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 Ordermust 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. Priorto using Allowances in accordance with Paragraphs 8.8 and 8.9 ofthis Trading Agreement and Orderthe Respondent shall obtain a General and/or Compliance Account in the CArR NATS.FirstLight Hydro Generating Company 4 Trading Agreement & OrderNo. 8303

4. Vintage Restriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthe Regulations and the provisions ofthis Trading Agreement and Order, DERCs shall only remain valid for five (5) calendaryears from the year ofthe generation ofsuch DERCs. DERCs olderthan five (5) calendaryears from theircreation 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 orallow actual NOx emissions from the operation ofthe emission units described in Table I ofthis Trading Agreement and Orderto exceed the corresponding FLERs. Compliance with the corresponding FLERs specified in Table I shall be determined based on the results ofemissions testing performed in accordance with Section 22a-174-22 of the Regulations orNOx emissions monitored and recorded by a continuous emissions monitoring systemthat was approved by the Commissioner and that complies with Section 22a-174-4 ofthe Regulations and either40 CFR 60, Appendices B&F or40 CFR 75.

6. Ozone Season Fuel Use Restriction: Notwithstanding the provisions ofParagraph B.2 ofthis 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, orapplicable 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 thatresult in higher emissions ofNOx, ifeither:

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 ofgaseous fuels to the emission units is interrupted due to inadequate supply orin accordance with an interruptible supply agreementbetween the Respondent and the gaseous fuel supplier.
8. DERC/Allowance Use. On the first day ofeach calendarmonth, the Respondent shall possess a quantity ofDERCs and/orAllowances 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 ofeach month, Respondent shall estimate DERCs and/or Allowances required for such calendarmonth 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/tonFirstLightHydro 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 laterthan the twentieth day ofeach month, Respondent shall calculate actual DERCs and/or Allowances used in the preceding calendarmonth 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 ofParagraph B.8 ofthis Trading Agreement and Order, on the first day ofeach Non-Ozone Season, the Respondent shall possess a quantity ofDERCs and/or Allowances that equals or exceeds the quantity ofNon- 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 ofeach Non-Ozone Season, Respondents shall estimate DERCs and/orAllowances 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 of0.15 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/orAllowances Required for all months ofthe Non-Ozone Season calculated pursuant to Paragraph B.8)
b. No laterthan thirty (30) days after the end ofeach 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 ofthe Non-Ozone Season calculated pursuant to Paragraph B.8)FirstLight Hydro Generating Company 

### 6 Trading Agreement & OrderNo. 8303
10. On orbefore January 31, ofeach calendaryear, the Respondent shaH deduct a quantity of DERCS from the current balance ofDERCs possessed by the Respondent and/or transfer a quantity ofAHowances from the Respondent's NOx General and/or Compliance Accounts to the CT StateNOx Retirement Account (Account 1D CT0000000300 in the CAIR NATS) such that the total is equal to the sum ofActual DERCs/AHowances Required pursuant to Paragraph 8.8 ofthis Trading Agreement and Order for the preceding calendaryear, 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 ofDERCS from the currentbalance ofDERCs possessed by the Respondent and/or transfer a quantity ofAllowances from the Respondent's NOx General and/or Compliance Account to the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIRNATS) 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 ofParagraph 8.2 ofthis Trading Agreement and Order, Allowances used to complywith this Paragraph for aNon-Ozone Season must havebeen originally allocated for the control periods that correspond to the same calendar years within thatNon-Ozone Season.

12. Doubling: Ifthe Actual DERCs/Allowances Required for any month, determined in accordance with Paragraph 8.8, exceeds the quantity ofDERCs 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.I0, the Respondent shall also deduct a quantity ofDERCs 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 CAIRNATS) 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.
Ifthe Actual DERCs/ Allowances Required for any Non-Ozone Season, determined in accordance with Paragraph 8.9, exceeds the quantity ofDERCs and/orAllowances in the Respondent's possession on the first day ofthe Non-Ozone Season, then in addition to the deduction ortransfer specified in Paragraphs 8. II, the Respondent shall also deduct a quantity ofDERCs from the currentbalance ofDERCs possessed bythe Respondent and/or transfer a quantity ofAllowances from the Respondent's NOx General and/or Compliance Account to the CT StateNOx 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 orAllowance transfer shall be performed at the same time as the DERC deduction or Allowance transfer specified in Paragraph 8.1 I ofthis Trading Agreement and Order. Notwithstanding the provisions ofParagraph B.l2 ofthis Trading Agreement and Order, any violation ofParagraphs 8.8 and 8.9 ofthis Trading Agreement and Order maybe subject to additional enforcement action as maybe deemed appropriate bythe Commissioner in accordance with the Department's enforcement response policy.FirstLight Hydro Generating Company 

### 7 Trading Agreement & OrderNo. 8303

13. No laterthan December 31 Sl ofeach 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 ofeach calendaryear, the Respondent shall demonstrate that any Allowances used for compliance with this Trading Agreement and Orderduring the yearare 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 suchunit by the State of Connecticutminus 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 orreplace any components ofthe combustion system as necessary, in accordance with manufacturer's specification
orcurrent good engineering practice;
b. Inspectthe 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 priorto 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 activityperformed on the emission unit described in Table I in accordance with Paragraph B.15 ofthis Trading Agreement and OrderFirstLightHydro Generating Company 8 Trading Agreement & OrderNo. 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 ofany maintenance, tune-up, and/or inspection activity performed on the emission unit described in Table I in accordance with Paragraph RI5 ofthis Trading Agreement and Order,

III. The name, title and affiliation ofthe person conducting any maintenance, tune-up, and/or inspection activityperformed 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 orcurrent good engineering practice priorto and after any adjustments are made during maintenance, tune-up, orinspection activityperformed in accordance with Paragraph RI5 ofthis Trading Agreement and Order.

a. By the close ofeach calendarday, the Respondent shall record the actual fuel type and the actual quantity ofeach type offuel in units ofvolume per day orMMbtu perday for each fuel used on the preceding day in an emission unit described in this Trading Agreement and Order;
b. On orbefore the first day ofeach calendarmonth, the Respondent shall record the number ofDERCs and corresponding serial numbers and vintages for all DERCs in its possession on the first calendarday ofthat calendarmonth,

c. On orbefore the first day ofeach calendarmonth, the Respondent shall record the number ofAllowances and corresponding identification numbers and allocation control periods for all Allowances in its possession on the first calendar day ofthat calendarmonth,
d. On orbefore the first day ofeach calendarmonth, 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 calendarmonth,

e. On orbefore the first day ofeach calendarmonth, 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 calendarmonth,FirstLightHydro Generating Company 

### 9 Trading Agreement & OrderNo. 8303

f. On orbefore the first day ofeach calendarmonth, the Respondent shall record the Estimated DERCs/Allowances Required for that calendarmonth determined in accordance with Paragraph B.8 ofthis Trading Agreement and Order.

. g. On orbefore the twentieth calendar day ofeach calendarmonth, the Respondent shall record the Actual DERCs/Aliowances Required for the preceding calendarmonth determined in accordance with Paragraph B.8 of this Trading Agreement and Order;
h. On orbefore January 31 ofeach calendaryear, the Respondent shall record the quantity ofDERCs deducted in accordance with Paragraphs B.I0 and B.12 ofthis Trading Agreement and Orderfor the preceding year. Such records shall include the serial numberand vintage ofeach DERC deducted from the Respondents currentbalance pursuant to Paragraphs B.1O and B.12 ofthis Trading Agreement and Order.

I. On orbefore January 31 ofeach calendaryear, the Respondent shall record the quantity ofAllowances 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 ofeach Allowance transferred pursuantto Paragraphs B.I0 and B.12 ofthis Trading Agreement and Order.
J. Not more than ninety (90) days after the completion ofeach 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/orallowances possessed on the first day ofthe Non-Ozone Season, and the quantity ofDERCs deducted and/or Allowances transferred in accordance with Paragraphs B.II and B.12 ofthis Trading Agreement and Order.
k. For each month ofthe 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 satisfythe requirements ofParagraph 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 ofthis Trading Agreement and Order, the Respondent shall make and keep Records ofall emission unit operation in accordance with Paragraph B.7 ofthis Trading Agreement and Order, including copies ofany written correspondence from the Respondent's fuel supplierdetailing the duration and circumstances ofthe inadequate fuel oil supply or interruption ofgaseous fuel supply to the emission units.FirstLightHydro Generating Company 10 Trading Agreement & OrderNo. 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 ofreceipt ofa 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 laterthan March I ofevery yearafter issuance ofthis Trading Agreement and Order, the Respondent shall submit to the Commissioner a written report containing copies of all ofthe records required pursuantto Paragraphs B.16.a

- B.16.i, and B.16.k- B.16.l ofthis Trading Agreement and Order. Not laterthan July 30 ofeach calendaryear, the Respondent shall submit a written report containing copies ofall records required pursuantto Paragraph B.16.j ofthis Trading Agreement and Order. The Commissionermayprescribe the forms to be used for the submission ofthese reports. The Respondent shall submit these reports on such forms, ifprescribed by the Commissioner.
19. FLER Violation. Violation ofan established FLER shall subject Respondent to make restitution by matching the quantity ofemissions ("true up") caused by the exceedance plus a 100% premium. The true up in tons ofDERCs orAllowances 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 ofnoncompliance 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 ofanyFLER contained in Table I is a violation in Paragraph B.5 ofthis Trading Agreement and Order subjectto 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 ofthis Trading Agreement and Ordermay be modified only after the consent ofthe Commissionerby written modification ofthis 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 Orderthat is not equipped with a continuous emissions monitoring system that was approved by the Commissionerand that complies with Section 22a-174-4 of the Regulations and either40 CFR 60, Appendix B&F or40 CFR 75.
22. Control Technology Evaluation: Not more than 9 months from the date ofissuance ofthis Trading Agreement and Order, the Respondent shall submit a control technology evaluation for the emissions units described in Table I to reduce emissions ofNOx to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a-174- 22 ofthe Regulations as maybe amended, without using, tendering, or otherwise acquiring Allowances orDERCs. Such evaluation shall include but not be limited to the following:

a. A detailed description ofthe 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 ofany and all additional oralternative 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 ofcapital costs, annual operating costs, and total annualized $/ton costs associated with the installation and operation ofany and all additional or alternative emissions control equipment and methods, or combinations thereof, that are capable ofreducing NOx emission from the subjectunit to, at a bare minimum, a rate orconcentration that complies with the applicable limits ofSection 22a-174-22 ofthe Regulations as maybe amended, without using, tendering, or otherwise acquiring Allowances or DERCs;
d. An estimated schedule for the design, procurement, installation and operation ofany additional oralternative 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 maybe amended, without using, tendering, or otherwise acquiring Allowances or DERCs;

e. A detailed description ofany adjustments and/or modifications that must be made to the emissions monitoring systems for the subject emission unit in orderto demonstrate compliance with, at least, Section 22a-174-22 ofthe Regulations as maybe amended, without using, tendering, or otherwise acquiring Allowances or DERCs; and
f. A detailed description ofany collateral environmental impacts that will result
as a direct consequence ofthe Respondent's use ofadditional/alternative emissions control equipment and methods to reduce NOx emissions to, at a bare minimum, a rate orconcentration that complies with the applicable limits ofSection 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 Orderuntil all actions required by this Trading Agreement and Orderhave 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 Orderin a complete and approvable form. Ifthe 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, ifno time is specified by the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action under this Trading AgreementFirstLight Hydro Generating Company 12 Trading Agreement & OrderNo. 8303
and Order, the Commissionermay approve the document orother action as submitted or performed or with such conditions or modifications as the Commissionerdeems 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 Commissioneror 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 orpersonally delivered, whicheveris earlier.
26. Dates. The date ofsubmission to the Commissioner ofany document required by this Trading Agreement and Order shall be the date such document is receivedbythe Commissioner. The date ofany notice by the CommissionerunderTrading Agreement and Order, including but not limited to notice ofapproval or disapproval ofany document or other action, shall be the date such notice is deposited in the U.S. mail oris 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 Ordermeans calendarday. Any document or action which is required by this Trading Agreement and Orderto be submitted orperformed by a date which falls on a Saturday, Sunday or a Connecticut or federal holiday shall be submitted orperformed by the next day which is not a Saturday, Sunday orConnecticut or federal holiday.
27. Certification ofdocuments. Any document, including but not limited to any notice, which is required to be submitted to the Commissionerunder this Trading Agreement and Order shall be signedby the Respondent or, ifRespondent 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 ofConnecticut State Agencies and by the individual(s) responsible for actuallypreparing 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 ofthe Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to complywith this Trading Agreement and Ordermay subject Respondent to an injunction and penalties.
29. False statements. Any false statement in any information submitted pursuantto this Trading Agreement and Order maybe 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 anypropertyrights with respect to these DERCs or Allowances. 32. Respondent's obligations under law. Nothing in this Trading Agreement and Order shall relieve Respondent ofotherobligations under applicable federal, state and local law

.

35. No effect on rights ofotherpersons. This Trading Agreement and Orderneither creates nor affects anyrights ofpersons or municipalities that are not parties to this Trading Agreement and Order. Trading Agreement & OrderNo. 8303 

### 13

34. Access to premises. Any representative ofthe Department ofEnvironmental Protection may enterthe withoutpriornotice for the purposes ofmonitoring and enforcing the actions required or allowed bythis Trading Agreement and Order.

37. Notice to Commissioner ofchanges. Within 15 days ofthe date Respondent becomes aware ofa change in any information submitted to the Commissionerunder this Trading Agreement and Order, orthat any such information was inaccurate or misleading orthat anyrelevant information was omitted, Respondent shall submit the correct or omitted information to the Commissioner. 33. No assurance by Commissioner. No provision ofthis Trading Agreement and Order and no action or inaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthat the actions taken by Respondent pursuant to this Trading Agreement and Order will result in compliance orprevent orabate pollution. 31. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute anyproceeding ortake any otheraction 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. Ifat any time the Commissionerdetermines that the actions taken by Respondentpursuantto this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extent or degree ofany pollution, or successfully abated orprevented pollution, the Commissionermay institute anyproceeding to require Respondent to undertake further investigation orfurther action to prevent or abate violations orpollution. 30. Notice oftransfer; liability ofRespondent. 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 oranyportion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Order or after obtaining a new mailing orlocation address. Respondent's obligations under this Trading Agreement and Order shall not be affected bythe passage oftitle to anypropertyto any otherperson or municipality. FirstLight Hydro Generating Company

### FirstLight Hydro Generating Company 14 Trading Agreement & OrderNo. 8303

38. Notification ofnoncompliance. In the event that Respondent becomes aware that it did not or may not comply, or did not ormay not comply on time, with any requirement ofthis Trading Agreement and Order or ofany documentrequired 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 extentpossible. Within five (5) days ofthe initial notice, Respondent shall submit in writing the date, time, and duration ofthe noncompliance and the
reasons for the noncompliance ordelay 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 notexcuse noncompliance ordelayunless specifically
so stated by the Commissionerin writing.
39. Submission ofdocuments. 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 orin writing bythe Commissioner, be directed to: Supervisor Administrative Enforcement Group Engineering and Enforcement Division Bureau ofAir Management Department ofEnvironmental Protection 79 Elm Street, 5th Floor Hartford, Connecticut 06106 (860) 424-3702Trading Agreement & OrderNo. 8303 15

Certified Document TOWN OF PRESTON LAND RECORDS MAILED CERTIFIED MAlL, RETURN RECEIPT REQUESTED



### BUREAUOFAlRMANAGEME NEWSOURCEREVIEW I

### TIn.J!. 

## APR 29 20m FirstLight Hydro 

### Generating Company

Issued as a final consent orderofthe Commissioner ofthe Department ofEnvironmental Protection. Type Title: Vice President

Date: 

# 4/::<

# W/I0 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