### EXhibit 3 

# STATE OF CONNECTICUT DRPARTMENT OF RNVmONMENTAL PROTRCTfON

STATE OF CONNECTICUT and COMBUSTIONENGINEERING, INC. TRADING AGREEMENT and ORDERNO. 8154 MODmCAnON No.3

TR.-\DINGAGREEMENTAND ORDERMODIFICATION In the matter ofa Trading: Agreement and OrderberNeen the Commissioner ofEnvironmental Protection 

### ("Commissioner") and Combustion Engineering, Inc. ("CE"). WHEREAS, the Commissioner and 

### CEo having agreed to the tenns and conditions set forth in Trading Agreement and Order No. 8154 issued on December 11, 1997, and a Modification thereto issued 

### on June 

### 3, 1998, do now, 

### by mutual agreement, modify Trading Agreement and OrderNo. 8154; WHEREAS, paragraph C.6. of the terms and conditions set forth in Trading Agreement and Order No. 8154 issued on December II, 1997, state that "FLERs, stack test rates and fuels in Tables I and 2 may be modified only after the consent of the Commissioner by written modification of [his Trading Agreement and Order" ; WHEREAS, CE has completed Department of Environmental Protection (''DEP'') approved stack testing when firing #6 fuel oil for boilers Nos. 3, 4, and 5 on 3/4/98, 4/22/97 and 4/18/97 and the results have been approved by the DEP; and, WHEREAS, the Commissioner and CE, having agreed to the tenns and conditions set forth in Trading Agreement and Order No. 8154 do now, by mutual agreement, modify this order as follows: I) Delete paragraph A.3. and substitute the following therefor: Official U.S. Environmental Protection Agency ("EPA") Reference Method 7E stack testing performed on 3/4/98, 4/22197 and 4/18/97 for boilers Nos. 3,4, and 5 respectively, resulted in NOx emission rates as follows: 

### Table 1 

### CE

- NOx EMISSION RATES 

### AND RAer

### LIMITS ObslMMlltu\ (Revised 4115100\ REG. Or HEATlNPUT STACKTEST RACT UNiT PERMITNo. 

## FUEL (MMBtu) RATE RATE Boiler 

### Rl12·09 No.6oil 14.3 0.338 

### 0.25 No.3 No.2 oil 14.3 

### 0.18 0.20 Nat. Gas 

### 13.8 0.11 0.20 Boiler R2 12-] 0 No.6 oil 

### 30.8 0.403 

### 0.25 No.4 No.2 oil 

### 30.8 0.17 0.20 Nat. Gas 

### 30.0 0.10 0.20 Boiler 

### P212·08 No.6 oil 

### 30.8 0.317 0.25 No.5 No.2 oil 

### 30.8 0.098 0.20 Nat. Gas 30.0 

### 0.101 0.20 

## tJ 1/1/ Initials: 

# Kf- L.. (Prinled on Recycled Paper) 79 r:Jm Slreel • Harlrord, CT 06106- Sl27 hllp:J/dep.slale.cl. us All Eql/al ,*par/lllliry Emp/nye,. 

# n .. e

### .Combustion

### Engineering, Inc. Trading Agreement and 

### Order No. 8154 Mod. No.3

a.



### b. 2) Delcte Table 2 ofparagraph C.2 and substitute the following therefor:

Table 2 CE

- FLERs and NOx Emission Rates (Rc\'ised 8/31100) 

### FLER NOx EMISSION RATE UNIT 

### FUEL (]b/MMBtu) 

### LIMITS (]blMMBtu) Boiler No.3 No.6 oil 0.39 0.25 BoilcrNo.4 No.6oil 0,47 0.25 Boiler No.5 No.6oil 0.37 0.25
3) Delete paragraph C.6 and substitute the following therefor: IfCE exceeds any ofthe FLERs specified in Table 2 afthis Trading Agreement and Order, within sixty (60) days ofCE having knowledge ofdle FLER exceedance, CE shall purchase and retire ERCs to Offset excess emissions from the FLER cxceedance. Such ERCs shall be equal to the exceedance in pounds per hour perboiler multiplied by the total operating hours ofeach boiler exceeding the FLER and summed together to determine the total insufficiency plus a 100% premium. lfthe period ofnon-compliance with the FLER is not known, the time period since the lastprevious stacktest shall be used to calculate the period ofnon-compliance unless evidince demonstrating, to the Commissioner's satisfaction, that a different time period should be used is submittedby CE to the Commissioner, in writing, within thirty 30 days ofCE having knowledge ofthe FLER exceedance, and the Commissioner in his sole discretion accepls such time period. All othertenns and conditions ofTrading Agreement and Order No. 8154 issued by the Commissioner acting under Sections 22a·6, 22a-171, 22a-174, 22a·176 and 22a-177 oflhe Connecticut General Statutes shall remain in effect.



### Initials: 

# l·ft. 2 

### Date: 

# 3/ t

# r.:/o1.--

### Combustion Engineering, Inc. Trading AQreement and Order No. 8154 Mod. No.3 

### Combustion Engineering,lnc. hereby consents to the entry ofthis modification to the Trading Agreement and Order without further notice.

Type Name: ·R. Keith Knauerhase 

### Type Title: Manager, Environmental Engineer

### lng Date: March 28, 2002



### Enteredas amodification ofan Orderofthe Commj:fion.er ofEnvironmental 

### Protection numbered 8154 this

### Z~ day of

## ...Y,Pn ( . 2 

### /

TOWN OF WINDSOR LANTI RECORDS MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED Certified DocumentNo. 7001 0360 0003 0796 2466**\\DEP)\SYS2\USERS\RSEVERAN\.TRADlNG-RLS\-"j'1~AOINGOROERS\A9B\8154mod3(lo-18-oi) .doc:** 

3

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

Mr. Keith Knaverhausr. Manager ofEnvironmental Operations 

### Combustion Engineering, Inc
.. P.O. Box 500 2000 DayHill Road Windsor, CT 06095 Re: Trading Agreement and Order No. 8154, Modification No.3 

### Dear Mr.Knaverbausr: Enclosed you will :md Trading Agreement and OrderNo.8J54, Modification No.3 for review and 

### signature. This letterfollows the request

### by Combustion Engineering, Inc. to decrease the full load emission rates (FLERs) for boilers 3, 4, and 5 when burning No.6 fuel oil. 

### Please sign Trading Agreement and OrderNo. 8154, Modification No.3 within 

### fourteen (14) calendardays ofyourreceipt ofthe Consent Order. Once the signed Trading Agreement and OrderModification is received by 

### the Department. itv,.iH be presented to the Commissionerfor signature. If

### signed by 

### the CommIssioner, TradingAgreement and 

### OrderNo. 8154, 

### Modification No.3 will beCOine a 

### Final Order 9fthe 

### Commissionerand acertified copy of

### the Trading 

### Agreement and 

### Order Modification will be

### returned to you via registered mail. 

### Ifyou 

### have any questions 

### regarding this 

### letter. please 

### do not hesitate to 

### contact

### Roland L. 

### Severance Jr., PE at (860) 424-3702. Sincerely.

# \II,A~ . Enc(l) 

### Certified DocumentNo.



## ,n.

# C!l.~:&ttj-;:- Cannine DiBattista, Chief Bureau ofAir

### Management

Q'I.TRADING·R!..S\-TBADINQQRDERSIABB\cEcov;r le\lenl I**·~9·0J)** doc (Prinled on Re<:yded Paper) 19 Elm Slre;1 • Harlford. CT 06106

- 5121**Illtp:Jldep.~** lale.el.lls -11, Eql/fli Opportunity Employer