# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the manerof The State ofConnecticut and 

### Bristol-Myers Squibb CompanY' 

# , ) ) ) ) ) 

### Trading Agreement and OrderNo. 8220 A

Whereas, the CommissionerofEnvirorunental Protection ("Commissioner") and Bristol-Myers Squibb Company ("BMS") agree that

### it is in the public interest that they work cooperatively to improve the airquality 

### within the State ofConnecticut and that the use ofdiscrete emission reduction credit (UDERC") trading to reduce nitrogen oxide (''NOx'') emissions will achieve this result in atimely and cost-effective manner:
A. At the request and withthe agreement ofBMS, the Commissioner finds the following: 1. 

### This Trading Agreement and Order5upercedes Trading Agreement and Order 8220 

### issued on September23, 2001. 2. BMS 

### is aPbannaceutical Research and Development Company

### withits principal place 

### ofbusiness at 345 ParkAve., New York, NY. BMS operates fuel burning equipment consisting oftwo (2) Diesel Generators identified inTable 1 ofthis Trading Agreement 

### and Order("peaking units") 

### at 5 Research Parkway, Wallingford, CT ("facility"). 3. On June 16, 1998 the peaking units were operated fornon-emergency use ("peak 

### shaving"). TheNOx emissions were 358.4lbs. Pursuantto Section 22a-174-22(b) of the Regulations ofConnecticut State Agencies ("Regulations"), the peaking units are 

### subject to Section 22a-174-22(d) through (1<) ofthe Regulations, pertaining [0 the control ofNOx emissions. 4. Official U.S. Environmental Protection Agency ("EPA") Reference Method 7E stack testing perfonned on November 10, 1999 resulted 

### in NOx emission rates set forth in Table 1 ofthis Trading Agreement and Order. 

### 5. BMS exceeds the NOx allowable emission rate limit specified 

### in Section 22a-174-22(e), ofthe Regulations as shown 

### in Table 10fthis Trading Agreement and Order. 6. Pursuant to Section 22a-174-220) ofthe Regulations, BMS proposes that for thepeaking units, BMS shall use DERC trading to comply with the applicable emission limitations 

### contained in Section 22a-174-22(e) ofthe Regulations until May 2007 at the facility in accordance with this Trading Agreement and Order. (Printed on ReCYcled Paper) 79 Elm SlrHl • Hartford. CT Q61()5.S127 An Equal OpporrunityEmployer. MP:lldep.slatfHtus Celebratinga Century ofForest Conservation Leadership 1901 2001

### Bristol-Meyers Squibb Company 2 

### Trading Agreement and Order 8220 A



# C) . ..


### .. Table 1 BMS-NOx EMISSION RATES AND ALLOWABLE LIMITS Peaking Units 

### Fuel Stack Emission Rates (lbs/M!\rffiru) 

### Test Stack 

# IFLER

# I Allowable 

# I Test 

# I Next Stack

# I (ppmv) 

### Test Rate 

### Date Test Due 940 

### KVA Other oil 1640.7 3.27 3.60 2.56 11110/99 11110/04 

### Waukesha Diesel Generator:: 1 

## , , 940 

### KVA Other oil' 14990 2.84 3.12 2.56 11110/99 11110/04 

### WaukeshaDiesel Generator#2. 7. BMS proposes ro use full Load Emission Rates CUFLERs") identified in Table I ofthis Trading Agreement and Orderfor thepurposes ofcalculating the DERCs required. 8. Pursuant to the Department ofEnvironmental Protection'S 

### "Credit Tradingfor Sources with IrregularNOx Emissions" policy, with arevised date ofFebruary 27,2001 attached hereto and incorporated by reference into this Trading Agreement and Order as Exhibit 1, these peaking units have peak daily NOx emissions greater than three times the average daily emissions during the ozone season and are therefore considered sources with irregular NOx emissions. 9. On April 24, 2000, pursuant to Section 22a-174-22m ofthe Regulations, BMS acquired from United muminating twenty-five (25) tons ofapproved ozone DERCs in order to meet the requirements ofSection 22a-174-22(d) ofthe Regulations and the requirements ofthis Trading Agreement and Order. BMS intends to acquire approved DERCs as needed. 10. By agreeing to the issuance ofthis Trading Agreement and Order, BMS makes no admission offact or law with respect to the matters addressed herein. 11. The Commissioner, in accordance with the provisions ofTrading Agreement and Order No. 8092, pursuant to Section 22a-174-22 ofthe Regulations, approved the NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC creation serial numbers assigned by the Depanment to these previously approved reductions ofNOx emissions areprovided in Table 2ofthis Trading Agreement and Order. DERCs are subject to the vintage restrictions ofthis Trading Agreement and Order. Dates after which the DERCs will no longerbe eligible for use as a result ofthe vintage restrictions are provided in Table 2 ofthis Trading Agreement and Order in the expiration date column.Bristol-Meyers Squibb Company J Trading Agreement and Order 8220 A Table?


# - Yearor Ozone season NOx DERC Numberor Expiration Generation serial numbers Ozone Date Season DERCs Pre-1999 CT98/8092NOxoz( 1-25) ?- 12/31/04 

# -,

, B. The Commissioner in**~d:ordance** with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(j)ofthe Regulations hereby allows BMS ro comply with Section 22a-174-22(d) ofthe Regulations through use ofDERC trading to achieve the NOx emission reduction required by Section 22a-174-22(d)(I) ofthe Regulations. C. With the agreement ofBMS, the Commissioner, acting underConnecticut General Statues Sections 22a-6, 22a-174, 22a-174, 22a-176, and 22a-177, orders BMS as follows: 1. Upon issuance ofthis Trading Agreement and Order, at the facility, BMS shall comply with Section 22a-174-22 ofthe Regulations through DERC trading. Until BMS achieves pennanent compliance with the emission standard in Section 22aJ74-22(e) ofthe regulation orby April 

### 3D, 2007 whicheveroccurs earlier:

a. BMS shall use approved DERCs as required underthis Trading Agreement and Order; b. BMS shall have in its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed underthis Trading Agreement and Order; and

c. BMS shall comply during operation ofthe generators with the FLERS shown in Table 1 ofthis Trarling Agreement and Order. 2. DERC use.

a. Until April 30, 2007, before the first day ofeach month, BMS shall have in iLS possession sufficient approved DERCs for the peaking units·based on the following calculations. Before the first day ofeach month, BMS shall estimate DERCs required for such month for the peaking units as follows. (i) 

### At all times (mass calculation):

Estimated DERCs (tons) 

## ={(estimated fuel use in MMBtu)) x «FLER)

- (0.95 xNOx allowable emission limit»} +2000 pounds/ronBristol-Meyers Squibb Company 4 Trading Agreement llnd Order 8220 A



### , 

## '- b. \\'here:

• Allowable limit in Ibs/MMBtu as shown in tllbJe I ofthis Trading

Agreement and Order

.

• FLER= full load emission rate in IbsIMMBtu as shown in lable I ofIhis Trading Agreement and Order.


# " • Discounl (.95);; %5 design margin applied 10 the allowable limit.


### During the ozone season only (peakday calculation): the maximum estimated excess NOx emissions (in lbs) on any ofthe days projected by the Commissioner to be "moderate to unhealthful," "unhealthful," or "very unhealthful," divided by 3 and then divided by 13 (with the result in Ions):

Estimated DERCs (tons); (Maximumestimated excess NOx in Ibs)'" 3

... 13 (Ibslday/ton)

o laterthan October30 of2003, 2004. 2005, and 2006 calculate the DERCs used in the preceding ozone season as the greaterof:

I. the actual total excess emissions for the ozone season in tons, as follows:

DERCs (in tons); {(actual fuel use in MMBtu) 

### x«FLER)

- (0.95 x NOx allowable emission Jimit»)}+ 2000 pounds/ton OR
II. the maximum actual excess NOx emissions (in Ibs) on any ofthe days projected by the Commissioner to be "moderate to unhealthful", "unhealthful", or "very unhealthful", divided by 3 and then divided by 13 (with the result in t,ons):

Actual DERCs (tons) used; (Actual excess NOx in Ibs)

...3

... 13 (Ibslday/ton)Brlstol·Meyers Squibb Company 5 Trading Agreement and Order 8.2.20 A

AS described in Exhibit 1 ofthis Trading Agreement and Order, 10 the extent that DERCs used to offset on peak day basis exceed the total mass excess emissions, remaining DERCs may be used in the non-ozone season in the same or subsequent years through April 30, 2007.



# , " 

## , 3. No laler than April 30, 2007, BMS shall comply with the requirements of Subdivision (1) ofSubsection (b) ofSection 22a-174-22 ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetermined to be appropriate, the Commissioner may grant a wrinen extension ofthis Trading Agreement and Order.

4. BMS shall make and keep records of: daily fuel use and fuel type; excess NOx emissions; the numberofDERCs in its possession, created, purchased and used (by serial number ifassigned) each month in accordance with the appropriate emission

_ rates and limits in this Trading Agreement and Order; the number ofDERCs used during the ozone season and non-ozone season (the remainder ofthe year); during the ozone season, the ozone classification as forecasted by the Commissioneron the previous day; as well as documentation attesting to the fact that approved DERCs used during the ozone season were generated during the ozone season. Generator certification ofthis fact shall be sufficient. EMS shall maintain and submit such records to the Commissionerin accordance with Section 22a-174-22 ofthe Regulations 5. Record Keeping. BMS shall retain records and supporting documentation as described in this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. BMS shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofawritten request from the Commissioner

, j



### .../ 6. Annual Emission Statement. No later than March 1 ofevery year after issuance of this Trading Agreement and Order, EMS shall include with the Annual Emission Statement provided to the Commissioner, a record ofeach sale orother transfer, and use ofany and 

### all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Order until all such DERCs have been used orare no longer in BMS's possession. BMS shall also include actual NOx emissions from the generators and the amount ofall DERCs used (including serial numbers (ifassigned) and approved DERCs generated and/or purchased from other facilities), generated and/or approved for the previous calendar year. These reports shall be on a form prescribed by the Commissioner and shall be in monthly increments. Should BMSBristol-Meyers Squibb Company 6 Trading Agreement and Order 8220 A choose to discontinue the generation ofDERCs. EMS will notify the Commissioner upon discontinuance.

6. Allowance Use. Pursuant to Section 22a-174-22(d)(3) ofthe Regulations, EMS may use NOx allowances. through April 30, 2007. pursuant to Subsection (j) ofSection J2a-174·22 ofthe Regulations to achieve all or aporrion ofthe reductions required by Section 22a-174-22 ofthe Regulations. Any allowance used for compliance with Section**22a-1'Z.4~22(e)** ofthe Regulations shall be subject to all restrictions and/or requirements applicable to DERCs contained in this Trading Agreement and Order;

a. In order for BMS to use NOx allowances, EMS shall create a general account in EPA's NOx AllowanceTracking System ("NATS"); and b. Each allowance used for compliance with Section 22a-174-22 ofthe 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 ID_ 

### CTOOOOOOO300 in the 

### NATS). 7. DERC Doubling. At aminimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in EMS's possession prior to the first day ofeach month. Howeverbased on the gravity ofthe noncompliance, the Commissioner may require additional upwardS adjustment. 8. Vintage Restriction. Forthe purposes ofcompliance with Section 22a· 174-22 ofthe Regulations,**DERCs/~lowances** shall only remain valid for five (5) calendar years from the yearofthe generation/allocation ofsuch DERCs/allowances. DERCs/alJowances older than five (5) calendar years from theircreation/allocation are not valid for use for compliance with Section 22a-174-22 ofthe Regulations. Notwithstanding the above, DERCs/allowances generated/allocated prior to calendar year 2000 are valid for use for compliance with Section 22a-174-22 ofthe Regulations up to and including December31, 2004.

. 9. FLER Exceedance. Noncompliance with an established FLER shall subject EMS to make restitution by matching the quantity ofemissions C'true up") caused by the exceedance plus a 100% premium. The true up in tons ofDERCs shall be equal to the FLER exceedance in IbsflvfMBtu, mUltiplied by the total heat input during [he period ofnoncompliance divided by 2000 Ibs/ton. Ifthe period ofnoncompliance is not known, the time period from the completion ofthe last/previous Deparrment witnessed emission teSt through the date the FLERcompliance is achieved as approved by the Commissionershall be used. However, nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute anyBrislOl-Meyers Squibb Company 7 Trading Agreement and Order 8220 A proceeding or take any other action 10 require additional upward adjustment. based on [he gravity ofany alleged noncompliance or violation oflaw. 10. FLER Modification. FLERs set forth in Table I ofthis Trading Agreement and Order may be modified only after the consent ofthe Commissioner by wrinen modification ofthis Trading Agreement and Order. II. Emissions Testing. Pursuarlt to Section 22a·174-22(k) ofthe Regulations. BMS shall conduct**~dx** emission teSts ofthe generators at least once every five years commencing from the dates ofthe NOx emission tests for the generators as provided in Table I ofthis Trading Agreement and Order. 12. Extension. 0 laterthan April 30, 2007. with respect to the generators,BMS shall comply with the requirements ofSection 22a·174-22(d)(1) ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and, ifdetermined 10 be appropriate, the Commissioner may grant a written extension of !.his Trading Agreement and Order. 13. Future Compliance Report. On or before September 1,2006, BMS shall submit a report indicating how the facility shall comply with section 22a-I74-22 ofthe Regulations with respect to the Generators on and afterMay 1, 2007.

14. Full compliance. BMS shall not be considered in full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Order have been completed as approved and to the Commissioner's satisfaction. 15. Approvals. BMS shall use best efforts to submitto the Commissionerall documents required by this Trading Agreement and Order in acomplete and approvable form. Ifthe Commissioner notifies BMS that any document orotheraction is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and BMS shall correct the deficiencies and resubmit it within the time specified by the Commissioneror, ifno time is specified by the Commissioner, within 30days ofthe Commissioner's notice ofdeficiencies. In approving any document orotheraction under this Trading Agreement and Order, the Commissioner may approve the document orother action as submitted orperformed 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 ordelay. 

### 16. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are those for which the Commissionerhas provided written authorization for use in compliance with Section 22a-I74-22 ofthe Regulations; "Commissioner" means the Commissionerorarepresentative ofthe Commissioner; "Ozone season" means the period from May I through September 30 in any given calendar year. The date ofBrislOl-Meyers Squibb Company 8 Trading Agreement and Order 8220 A ··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. 17. Dates. The date ofsubmission to the Commissionerofany 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 underTrading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofany**documen~'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 Ordermeans calendarday. Any document or action which is required by this Trading Agreement and Order to be submitted orperformed by a date which falls on aSaturday, Sunday or aConnecticut or federal holiday shall be submitted orperformed by the nextday which is nor a Saturday, Sunday or Connecticut or federal holiday.


# 3

.. 18 Certification ofdocuments. Any document, including but not limited 10 any notice, which is required to be submitted to the Commissioner under this Trading Agreement and Order shall be signed by BMS or, ifBMS is not an individual, by

_ BMS's chiefexecutive officeror aduly authorized representative ofsuch officer, as those terms are defined in Section 22a-43Q-3(b)(2) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actually preparing such document, and BMS orEMS's chiefexecutive officer and each such individual shall certify in writing as follows: "I have personally examined and am familiar with the information submitted in this document and all attachments thereto, and Icertify, based on reasonable investigation, includi9g 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. I understand that any false statement made in the submitted information is punishable as acriminal offense under Section 53a·157b of the Connecticut General Statutes and any other applicable law." 19. Noncompliance. This Trading Agreement and Order is a final orderofthe 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 BMS 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 53a157b ofthe Connecticut General Statutes and any other applicable law. 21. Notice oftransfer: liability ofEMS. Until BMS has fully complied with this Trading Agreement and Order, BMS shall notify the Commissioner in writing no later than l5 days aftertransferring all or any portion ofthe facility, the operations, the site orBnslOl.Meyers Squibb Company 9 Trading Agreement and Order 8220 A the business which is the subject ofthis Trading Agreement and Orderor after obtaining a new mailing or location address. BMS'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

.

.,., Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any otheraction to prevent or abate riolations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to imposepenalties for past, present, or future violations oflaw. Ifat any time the Commissionerdetermines that the actions taken by BMS pursuant to this Trading Agreement and Order have nOt successfully corrected all violations, fully characterized the extent ordegree ofany pollution, or successfully abated orprevented pollution, the Commissioner may institute any proceeding to require EMS to undertake further investigation or further action to prevent or abate violations or pollution. 

### 23. EMS's obli2ations under law. Nothing in this Trading Agreement and Order shall relieve BMS ofotherobligations under applicable federal, state and local law. 24. 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 Commissionerthat the actions**tak~n** by BMS pursuant to this Trading Agreement and Order will result in compliance orprevent or abate pollution. 25. Access to facility. Any representative ofthe Department ofEnvironmental Protection may enter the without prior notice for the purposes ofmonitoring and enforcing the actions required orallowed by this Trading Agreement and Order. 26. No effect on ri!!hts o(otherpersons. This Trading Agreement and Orderneither creates nor affects any rights ofpersons or municipalities that are not parties to this Trading Agreement and Order. 

### 27. No CreatIon ofProoerty Ru!hts. This Trading Agreement and Orderdoes not create any property rights with respect to these DERCs. 

### 28. Notice to Commissionerofchanges. Within 15 days ofthe date BMS becomes aware ofachange in any information submitted to the Commissionerunder this Trading Agreement and Order, or that any such infonnation was inaccurate or misleading or chat any releyant infonnation wa,s omitted, BMS shall submit the correct oromitted information to the Commissioner.



### ....

# - 29. Notification ofnoncompliance. In the event thatBMS becomes aware that it did not or may not,comply, or did not or may not comply on time, with any requirement of this Trading Agreement and Orderor ofany document required hereunder, BMS shall immediately notify by telephone the individual identified in the next paragraphBristol·Meyers Squibb Company 10 Trading Agreemem and Order 8220 A

.j 30. 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. BMS shall submit in writing the date. time, and duration ofthe noncompliance and the reasons for the noncompliance ordelay and propose. for the review and wrinen approval ofthe Commissioner, dates by which compliance will be achieved, and EMS shall comply with any dates which may be approved in writing by the Commissioner. Notification by BMS shall not excuse noncompliance ordelay, and the:Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance ordelay unless specifically so stated by the CommissioneT'"in writing. Submission ofdocuments. Any document required to be submitted to the Commissionerunderthis Trading Agreemem and Order shall. unless otherwise specified in this Trading Agreement and Orderor in writing by the Commissioner, be directed to:**~r. ~ichael** **~eur** Emissions Trading Unit Compliance and Field Operations Oivision 5th Floor Bureau of.-\.irManagement Department ofEnvironmental Protection 79 Elm Street Hartford, Connecticut 06106

# ·

# . Bristol·Meyers Squibb Company 

# " Trading Agreement 

### and Order 8220 A

BMS 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 BMS to**th~** 

### tenns and conditions ofthe Trading Agreement and Order. Brisol-Mey rs Squibb Company Signature:

# _-,= Type Name:

### 1--,tJ.~""'."'-""-~ll.Jr.u"-':>'~l=~ _ Type Title:

## 5'""",';~**h·",~** 

# -\..r**F~,.** 

# 1..\,,; Date: 

## .7-,0-03

Issued as afinal order ofthe CQTl)ffiis;io!l.erofthe Departmen 

# If :Environmental Protection on ""'1.;1.4 17, 2003.

## ~'((4~'" 

# I ArthurJ. 

### Rotque,

### J,r. , commiSSiofei '. ') CITY OF WALLINGFORD LAND RECORDS 

# U
MAILED CERTJFIED MAIL. RETURN RECEIPT REQUESTED Certified Document No.