# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

. 

# , The State ofConnectlcul,and 

## , Dominion Nuclear Connecticut, Inc. ) ) ) ) ) Trading Agreement 

### and OrderNo. 8222A

Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and Dominion Nuclear Connecticut, Inc. ("DNC") agree that 

### it is in the public interest that they work cooperatively to improve the air quality within the State ofConnecticut and that the use ofdiscrete emission reduction credit (UDERC") trading to reduce nitrogen 

### oxide**('~Ox·')** 

### emissions will 

### achieve this result in atimely and cost-effective 

### marmeT. A. At the request and with the agreement ofDNC, the Commissioner finds the 

### following: /""\ 

### 'iJ I. This Trading Agreement and Order supercedes Trading Agreement and 

### Order 8222 issued on March 29, 2001. 2. On or aboutMarch 31, 2001, DNC acquired from Northeast Nuclear Energy Company (''NNECO'') and now owns and operates the Millstone Power Station at Rope Ferry Road, Waterford, Connecticut ("facility"). 

### 3. Atthe facility, DNC operates fuel burning equipment consisting oftwo oil·fired Babcock and Wilcox boilers 1 and 2 ("boilers") which are subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies 

### (''Regulations'') pertaining to the control ofNOx emissions. 

### 4. Emission testing perfonned on the dates indicated in Table 1, resulted in a NOx emission rates as follows: 

### Table 1 DNC FLER and NOx Allowable Emission Limits (IbslMMBtu) 

## - Emission Fuel Type Hut Emission FLER Allowable Last 

### N,n Units input 

# T,,' Rate 

# T,,' Emission Date Test Due B&WI No.4 fuel oil 69.6 0.26 0.29 .25 4112100 4112105 B&W2 No.4 fuel oil 169.6 0.32 0.35 .25 4112100 4112105 f

. ".


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(Printed on Recycled Piper) 79 Elm Stlcet • HUlford, 

### cr 06106·5127 hllp:/ldcp.SI.IC. CUIS All Eq"ol 0pPorrlmiry EmployoLJU1JlllllUll l'<U(,;Ic:ar 

### 1".,0TUleCtlCut, inc. 

### Trading Agreement and Order No. 8222A 5.



### 6.

7.

8. 

### When operating the boilers, DNC exceeds the NOx allowable emission rate specified in Section 22a-174-22(e) ofthe 

### Regulations as sho\\'Il in Table 1 oflhis Trading Agreement and Order. 

### Pursuant to Section 22a-174-22(j) ofthe Regulations, DNC proposes, when operating the boilers, to acquire and use DERC trading to comply with the applicable emission limitations contained in 

### Section 22a-174- 22(e) oflbe Regulations until May I, 2007 allbe facilily in accordance 

### with this TradingAgreement and Order. 

## " 

# , DNC proposes 10 use Full Load Emission Rales ("FLERs") identified in Table I of!his Trading Agreemenl and Orderfor lbe purposes of calculating Ihe DERCs required. 

### The Commissioner, in accordance with the provisions ofSection 

### 22a-174- 22(j) ofthe Regulations, allows the use ofpreviously approved unused NOx DERCs referenced in Table 2 of!his Trading Agreemenl and Order. 

### These DERCs are subject to the vintage restrictions ofthis 

### Trading Agreement and Order. Dates afterwhich theunused. DERCs will no longerbeeligiblefor use as aresult ofthe

### vintage restrictions are provided. in Table2 ofthis 

### TradingAgreement and Order in 

### the expiration date column. Table 2 PreviousIv Annroved DERCS (to the extent Dot already 

### used) Year or Ozone season NO.1 DERC Ozone Non-ozone season NO.1 Non- E.Ipiration Generation serial number 

# I**~cason** DERC serial number ozone Dale

• Ox season DERCs NOx 

### DERC Pre-2000 

### I N/A 3 N/A 2 12131/04 

### B. The Commissioner in accordance with the provisions ofthis 

### Trading Agreement and Order, pursuanllo Seclion 22a-174-22(j) oflbe Regulations hereby allows DNC to complywilb Section 22a-174-22(d) oflbe Regulations through use of 

### DERC trading to achieve the NOx emission reduction required by Section 22aI74-22(d)(1) oflbe Regulations. 

### C. With the agreement ofDNC, the Commissioner. actingunder Connecticut General Statues Seclions 22a-6, 22a-174, 22a-174, 22a-176, and 22a-I77, orders DNC as follows:



### .. ' I. 

### Upon issuance ofthis 

### TradingAgreement and Order, at the facility, DNC shall complywilb Section 22a-174-22 oflbe Regulations through DERC 

### trading. Until DNC achieves permanent compliance with the emission standard in Section 22a-174-22(e) oflbe regulation orby April 30, 2007, 

### whicheveroccurs earlier:

2

### Dominion Nuclear Connecticut, Inc. Trading Agreement and Order 

### No. 8222A



# o , a. 

### DNC shall use approved DERCs as required under this Tfading Agreement and Order; 

### b. DNC shall have in its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order; and



### c. DNC shall comply during operation ofthe boilers with the FLERS showriin Table 1 afthis Trading Agreement and Order. 

### 2. DERC use.

a. Until April 30, 2007. before the first day ofeach month, DNC shall have in its possession sufficient approved DERCs for the boilers based on the following calculations. 

### Before the first day ofeach month, DNC shall estimate DERCs required for such monthfor the boilers as follows: EstimatedDERCs (tons) = 

### «(estimated fuel use in MMBru) x «FLER)- 0.95 xNOx Allowable linUt»)) .;. 2000 pounds/ton; Where:

• Allowable limit = in IbsfM]vffitu as shown 

### in table 1 of this Trading Agreement and Order

.



### • FLER = 

### full load emission rate in 

### IbslM}.ffiru as shown in 

### table I of this Trading Agreement and Order

.

• Discount (.95) = 

### %5 design margin applied to the allowable limit. b. No laterthan the twentieth day ofeachmonth, calculate and pennanently retire DERCs used in the preceding calendarmonth for the boilers as follows: Acrual DERCs (tons) = 

### «acrual fuel use in MMBru) x«FLER)

- (0.95 x NOx Allowable linUt ))) .;. 2000pounds/ton. 3. 

### DNC shall make and keep records of: monthly fuel use and fuel type; excess NOx emissions; the numberofDERCs in its possession, created, purchased and used (by serial numberifassigned) eachmonth in accordance with the appropriate emission rates and limits inthis Trading Agreement and Order; the numberofDERCs used during the ozone season and non-ozone season (the remainderofthe year); as well as documentation attesting to tile fact that approved DERCs used during the

)

### Dominion Nuclear Connecticut, Inc. Trading Agreement and Order No. 8222A


### ozone season were generated during the ozone season. Generator certification ofthis 

### fact shall be sufficient. DNC shall maintain and submit such records to the Commissioner 

### in accordance with Section 22a174-22 ofthe Regulations 

### 4. Record Keepimz. DNC shall retain records and supportingdocwnentation as described in this TradingAgreement and Order for aminimwn offive years, commencing on the date such records were created. DNC shall provide the records specified above 10 

### the Commissionerwithin 

### thirty (30) days of

### re~eipt ofawrinen request from the Commissioner 

### 5. Annual Emission Statement. No laterthan March Iofevery yearafter issuance ofthis 

### TradingAgreement and Order, D 'C shall include with the Annual Emission Statementprovided to the Commissioner, arecord of each sale orothertransfer, and use ofany and all oftbeDERCs approved within and subsequent to issuance ofthis 

### TradingAgreement and Order until all such DERCs have been used orare no longer in DNC's possession. DNC shall also include actual NOx emissions from the boilers and the amount ofall DERCs used (including serial numbers (ifassigned) 

### and approved DERCs generated and/orpurchased from otherfacilities), generated and/or approved for the previous calendar year. These repons shall be on aform prescribedby the Commissionerand shall be in monthly increments. Should DNC choose to discontinue the generation of DERCs, DNe will notify the Commissionerupon discontinuance. 6. Allowance Use. Pursuant 10 

### Section 22a-174-22(d)(3) ofthe Regulations, DNC mayuse NOx allowances, througb April 30, 2007, pursuantto Section 22a-174-22(j) ofthe Regulations to achieve all or aportion ofthe 

### reductions required by Section22a-174-22 ofthe 

### Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe 

### Regulations shall be subject to all restrictions and/or requirements applicable to DERCs contained in this TradingAgreement and Order;

a. In 

### order forDNC to useNOx allowances, DNC shall create a general account in EPA's NOx Allowance Tracking System (''NATS''); and 

### b. Each allowance used for compliance with Section22a-174-22 of the Regulations shall be equivalent to one discrete emission reduction credit. Allowances shall be considered used for compliance with Section 22a-174-22 ofthe Regulations when they 

### are transferred from the facility's NOx general account in the NATS to the CT State NOx Retirement Account (Account 

### ill CT0000000300 in the NATS).

4

### Dominion Nuclear Connecticut, Inc. Trading Agieemenr and Order 

### No. 8222A 7. DERC Doubling. At aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in DNC's possession priorto the first day ofeach month. Howeverbased on the graviry ofthe noncompliance, the Commissionermay require additional upwards adjustment. 8. Vintage Restriction. Forthe purposes ofcompliance with Section 22a174-22 ofthe Regulations, DERCs/allowances shall only remain valid for five (5) calendarye.ars from the year ofthe generation/allocation ofsuch 

### DERCs/allowances. DERCs/allowances olderthan five (5) 

### calendaryears from their1=reation/allocation are not valid for use for compliance with 

### Section 22a-174-22 ofthe Regulations. Notwithstanding the above, DERCsiallowances generated/allocatedprior to calendaryear 2000 are valid for use for compliance with Section 22a-174-22 ofthe Regulations up to and including December 31, 2004. 

### 9. FLER Exceedance. Nonc;ompliance with an establisbed FLER sball subject DNC to make restitution bymarching the quantityofemissions ("true up") caused bythe exceedance plus a 100% premium. The true up in tons ofDERCs shall be equal to the FLER exceedance in lbs/}..1}..ffitu, multiplied by the total heat input during the period ofnoncompliance divided by 2000 lbslton. lftheperiod ofnODcompliance is Dot known, the time period from the completion ofthe last/previous Department witnessed emission test through the date the FLER compliance is achieved as approved bythe Commissioner shall be used. However, nothing in 

### this Trading Agreement and Order shall affect the Commissioner's authority to institute anyproceeding ortake any other action to require additional upward adjustment, based on the gravity ofany alleged noncompliance or violation oflaw. 

### 10. FLER Modification. FLERs set forth in Table 1 ofthis Trading Agreement and Ordermay be modified only afterthe consent ofthe Commissionerbywrinen modification ofthis Trading Agreement and 

### Order

.

. 11. Emissions Testing. Pursuant to Section**22a~** 

### 174-22(k:) ofthe Regulations, DNC shall conductNOx emission tests ofthe boilers at least once every five years, no laterthan from the dates ofthe last. 

### Ox emission tests for 

### tbe boilers as provided in Table I 

### ofthis Trading Agreement and Order. 12. Extension. No laterthan April 30, 2007, with respect to the boilers DNC sball comply with the requirements ofSection 22a-174-22(d)(I) ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetennined to be appropriate, the Commissionermay grant awrinen extension ofthis Trading Agreement 

### and Order.

5Dominion Nuclear Connecticut, Inc. Trading Agreement and Order No. 8222A 

### 13. Future Compliance Report. On orbefore September 1,2006, DNC shall submit a report indicating how the facility shall comply with section 22a174-22 ofthe Regulations with respect to the boilers on and after May 1, 2007. 14. Full compliance. DNC 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 Commis'sioner's satisfaction. 

## " 15. Approvals. DNC shall use best efforts to submitto the Commissioner all docwnents required by this Trading Agreement and Order in a complete and approvable form. 

### Ifthe Commissionernotifies DNC that any document or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and DNC shall correct the deficiencies and resubmit it within the time specified by the Commissioneror, ifno time is specifiedby the Commissioner, within 30 days ofthe Commissioner's notice ofdeficiencies. In approving any document or other action under this Trading Agreement and Order, the Commissionermay approve the document or other action as submitted or performed orwith such conditions ormodifications as the Commissioner deems necessary to carry out the purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay. 16. Definitions. As used in this Trading Agreement and Order, "Commissioner" means the Commissioneror arepresentative ofthe Commissioner; and "Ozone season" means the period from May 1 through September 30 

### in any given calendaryear. The date of"issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. Approved DERCs are defined forpurposes ofthis Trading Agreement and Order as those for which the Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations. 17. Dates. The date ofsubmission to the Conunissioner ofany document required by this Trading Agreement and Order shall be the date such document is received by the Commissioner. The date ofany notice by the Commissioner under this Trading 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, whicheveris earlier. Except as otherwise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendar day. Any document or action which is required by this Trading Agreement and Orderto be submitted orperfonmed by a date which falls on a Saturday, Sunday or a

6Dominion Nuclear Connecticut, Inc. Trading Agreement and Order 

### No. 8222A Connecticut orfederal holiday shall be submitted orperformed by the next day which is not a Saturday, Sunday or Connecticut or federal holiday. 18. 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 signed by DNC or, ifDNC is not an individual, by an individual who is an authorized representative of DNC, in accordance with Section**22a-174~2a(a)** ofthe Regulations of Connecticut%State Agencies, and by the individual(s) responsible for actually p?eparing such document, and each such individual shall certify in wTiting as follows: "I have personally examined and am familiar with the information submitted 

### in this document and all attachments thereto, and I certify, based on reasonable investigation, including my inquiry ofthose individuals responsible for obtaining the infonnation. that the submitted information is true, accurate and complete to the best ofmy knowledge and belief. Iunderstand that any false statement**m~de** in the submitted information is punishable as a criminal offense under §53a-157b ofthe Connecticut General Statutes and any other applicable law." 19. Noncompliance. This Trading Agreement and Orderis a final order ofthe Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subjectDNC to an injunction and penalties. 20. False statements. Any false statement in any information submitted pursuant to this Trading Agreement and Orderis punishable as a criminal offense under Section 53a-157b ofthe Connecticut General Statutes and 

### any other applicable law. 21. Notice oftransfer; liability ofDNe. Until DNC has fully complied with this Trading Agreement and Order, DNC shall notify the Commissioner 

### in writing no laterthan 15 days ·aftertransferring all or anyportion 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. DNe's obligations underthis Trading Agreement and Order shall not be affected by the passage oftitle to anyproperty to any otherperson ormunicipality. 

### 22. 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 ofJaw. Ifat any time the

7Dominion Nuclear Connecticut, rnc. Trading Agreement and Order No. 8222A Commissioner determines that the actions taken by DNC pursuant to 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 any proceeding to require DNC to undenake funher investigation or further action to prevent or abate violations orpollution. ONe's obligations under law. Nothing in this Trading Agreement and Order**sha~** relieve DNC ofother obligations under applicable federal, state and local law. 24.

25.

26. No assurance bv Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissionershall be construed to constitute an assurance by the Commissioner that the actions taken by DNC pursuant to this Trading Agreement and Order will result in compliance orprevent or abate pollution. Access to facility. Anyrepresentative ofthe Department of Environmental Protection may enterthe facility without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order.
No effect on rights ofotherpersons. This Trading Agreement and Order neither creates nor affects any rights ofpersons or municipalities that are not panies to this Trading Agreement and Order. 27. No Creation ofPropertv Rights. This Trading Agreement and Order does not create anyproperty rigbts with respect to these DERCs. 28. Notice to Commissioner ofchanoes. Within 15 days ofthe date DNC becomes aware ofa change 

### in any information submitted to the Commissionerunder this Trading Agreement and Order, or that any such information was inaccurate ormisleading or that anyrelevant information was omined, DNC shall submit the correct oromined infonnation to the Commissioner. 29. Notification ofnoncompliance. In the event that DNC becomes aware that it did not or may not comply, ordid not ormay not comply on time, with any requirement ofthis Trading Agreement and Order or ofany document required hereunder, DNC 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, if unavoidable, is minimized to the greatest extent possible. Within five (5) days ofthe initial notice, DNC shall submit in writing the date, time, and duration ofthe noncompliance and the reasons for the noncompliance or delay and propose, for the review and wrinen approval ofthe

8Dominion. uclear Connecticut, Inc. Trading Agreement and Order No. 8222A



### .,'. \ . ! '-.


### .. 30. Commissioner, dates by which compliance will be achieved, and DNC shall comply with 

### any dates which may be approved in writing by the Commissioner. Notification by D. TC shall not excuse noncompliance or delay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated by the Commissioner in writing. Submission ofdocuments. Any docwnent required to be submined to the Cornmissi.qnterunder this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order or in writing by the Commissioner, be directed to: 

### Mrs. Elizabeth McAuliffe Department ofEnvironrnentaJ Protection Bureau ofAirManagement Emissions and Credit Trading Section 79 Elm Street Hartford, Connecticut 06106-5127

9Dominion Nuclear Connecticut, Inc. Trading Agreement and Order No, 8222A
'-.':

'C DNC consents to the issuance ofthis Trading Agreement and Order without further notice. The undersigned cenifies that he/she is 

### fully authorized to enter into this Trading Agreement and Order and to legally bind DNC to the terms and conditions ofthe Trading Agreement and Order.

Signature: 

### Name: Title: Date: Dominion Nuclear Connecticut, Inc. 

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Issued as a final order ofthe Commissioner ofEnvirorunental Protection

# on~U ,2003,



### CITY OF WATERFORD LAND RECORDS MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED Certified DocumentNo.

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