# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

IN THE MATTER OF STATE OF CONNECTICUT AND JACOBS VEHICLE SYSTEMS, INC. ) ) ) ) ) ) ) ) 

### TRADING AGREEMENT AND ORDER NO. 8230



### Whereas, rhe Commissioner ofEnvironmental Protection ("Commissioner") and Jacobs Vehicle Systems, loc. ("JVS") agree that it 

### is in the public interest that they work cooperatively (Q 

### improve the air quality within the State ofConnecticut and that the use ofdiscrete emission reduction credit CDERC") 

### trading to 

### reduce nitrogen oxide ("NOx") emissions will achieve this result in atimely and cosc-effective manner: A. At the request and with the agreement ofJVS, the Conunissioner 

### fmds the following: 1. JVS 

### is acorporation which owns and operates a facility located at 22 East Dudley Town 

### Road, Bloomfield, COIUlecticuI which is engaged in the development and manufacturing of operating systems, including braking systems and other components, for reciprocating engines that are used in 

### motor vehicles (the "facility"). 2. At the facility, JVS operates two (2) boilers numbered I and 2 (the "Boilers"). The Boilers 

### are authorized to 

### bum natural gas and residual oil. Boiler #1 is aperrnined source that operates under permit No. 0030 and Boiler #2 is aregistered source (registration no. 0-11- 008). Boiler#1 is aJohnston Boiler Company, PFT-400-4HG-150 with a maximum rated capacity of 16.74 MMBtu/hr. Boiler#2 is a Combustion Engineering VP9 with a maximum rated capacity of32 MMBtu/hr. 

### 3. Although Boiler #1 is authorized under Permit No.OO30 to 

### burn residual oil and natural gas, it is currently not set up to burn residual oil and 

### NS has represented to 

### the Commissioner that it has not burned, nor does 

### it intend to 

### burn, residual oil in Boiler #1. 

### 4. At the facility, JVS operates thirteen engine test cells, each consisting oftwo diesel-fired reciprocating engines. 5. On December I, 2000, JVS submitted to 

### the Commissioner a Compliance Plan for Connecticut Regulations for the Control ofOxides ofNitrogen (the "plan"). In an April 20, 2001 lener regarding the plan, DEP informed JVS that the test cells on which JVS' (Printed on Recycled Paper) 79 Elm**Slre~1:_Hartford.** CT 06106-5127 All Equal OpponuflilyEmployer

.**htlp:l/de;).Stale.~.lJ$** Celebratinga Century ofForest Conservation Leadership 1901 2001Jacobs Vehicle Systems Trading Agreement and Order No. 8230 products are tested are stationary sources. Therefore, DEP determined that the facility is considered amajor source of

### NO% and is SUbject to Section22a-174·22 ofthe Re!!ula!ions. 6. Based on the above, the Boilers are subject to the emission limitations in Section 22a-174- 22(e) ofthe Regulations. Section 22a·174·22(e) ofthe RegUlations requires that the Boilers emit 

### NO% at a ra,fe1ho greater than 0.25 pounds per million British thermal units ("lbs/MMBru") ofheat input when burning residual oil and 

### 0.20 lbs/MMBru heat input when burning natural gas. 7. Stack testing ofBoiler#1 burning natural gas and Boiler#2 burning natural gas and residual oil was conducted by TRC Environmental Corporation ("YRC") on February 19 and 20, 2002. TRC conducted triplicate 60-minute tests on each boiler. TRC submitted a NOxEmissions Testing report to the DEP in March 2002. The DEP reviewed the report and informed TRC that the DEP considered the emission values reported to be representarive nfacmal emissions (April II, 2002 letter from Dennis Demchak ofthe DEP tn Scott Paterson ofTRC). 8. The average 

### NOxemission rate for Boiler #1 was 0.138 lb/MMBru when burning natural gas. Boiler #1 operated at an a minimum of71.4% ofits maximum rated capacity while fIring narural gas. 9. The average 

### NO% emission rate for Boiler#2 was 0.072 Ib/MMBru while firing natural gas. The average NOx emission rate for Boiler#2 was 0.349 lb/MJ"fBru while burning residual oiL Boiler#2 operated at a minimum of37.3 

### % ofits maximum rated capacity while firing natural gas and 40.9% ofits maximum rated capacity while firing residual oil. 10. The average NOxemission rates measured for Boiler#1**an~** #2 while fIring natural gas were in compliance with the allowable NOxemission rate of0.20 Ib/MMBru when burning natura} gas. 11. The average 

### NOxemission rate ofBoiler#2 burning residual oil exceeds the allowable NOx emission rate limit for burning ofresidual oil as defined in Section 22a-174-22 ofthe Regulations. 12. Pursuant ro Section 213-174-22(j) ofthe Regulations, 

### NS will acquire approved DERCs to offset excess NOx emissions from the Boilers. 

### NS proposes using the FLER identified in paragraph 

### C.S for the purpose ofcalculating DERCs required. 

### NS intends to continue acquiring approved DERCs as needed.

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13. Approved DERCs are defined for purposes ofthis order as those for which the Commissioner has provided written authorization for use in compliance with Section 22a174-22 ofthe Regulations. 14. JVS performed the stack testing during the winter months, so that the boilers could be operated at the maximum load possible during the testing. Although JVS operated the boilers at the highest load possible for this facility, the boilers did nOt reach 90% 

### ofthe maximum rated capacity. The emission values that were measured during the stack testing are representative ofactual emissions at JVS when the boilers are operating at their maximum loads. Therefore, these emission test results are considered adequate to show compliance with Section 22a-I74-22 ofthe Regulations and to set full load emission rates, as long as JVS agrees to derate its boilers. 15. On June 28, 2002, JVS submitted to the DEP a request for a minor modification ofPermit No. 0030. JVS requested that DE?: a) place a restriction on the maximum firing rate of Boiler#1, b) eliminate the option ofburning residual oil in Boiler #1, and c) correct the allowable emissions for Boiler #1 when fuing natural gas. 16. DEP informed JVS that apermit was Dot required for Boiler #1 tinder Section 22a-174-3a ofthe Regulations. Therefore, with the consentofJVS, DE? will revoke Permit No. 0030 in accordance with Section 22a-174-2a(h) ofthe Regulatinns. 17. JVS agrees to restrict the capacity ofBoiler#1 and Boiler #2 so that the rate at which each was tested is considered 90% ofthe maximum rated capacity for each boiler. 18. Boiler #1 was stack tested at a minimum of 11.9 MMBruIhr, or 71.4% ofits maximum rated capacity of 16.74 MMBruIhr. Therefore, 

### NS will agree not to operate Boiler #1 above 13.2 MMBtu/hr (13.2 MMBtu/hr = (11.9 MMBtulbr/0.9)). 19. Boiler #2 was stack tested at a minimum of 11.9 MMBtuIhr, or 37.3% ofits maximum rated capacity of32 MMBtulhr while burning natural gas. Boiler #2 was tested at 13.1 MMBtuIbr or 40.9% ofits maximum rated capacity of32 MMBtu/hr wbile burning residual oiL Therefore, JVS 

### wiII not operate Boiler #2 at a firing rate above 13.2 MMBtu/hr while firing natural gas (13.2 MMBtuibr = (11.9 MMBtuibr/0.9)) or 14.5 MMBtulbr wbile firing residual oil (14.5 MMBtuibr = (13.1 MMBtuibr/0.9)). B. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, and pursuant to Section 22a-174-22(j) ofthe Regulations hereby allows JVS to comply with Section 22a-174-22 ofthe Regulations through use ofDERC trading referenced in Section A, herein, to acbieve the NOx emission reduction required by Section 22a-174-22(d)(I) ofthe Regulations.



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### Jacobs VehicleSystems TradingAgreement and OrderNo. 8230
C. With the agreement ofJVS, the Commissioner, acting under Connecticut General Starutes Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177, orders 

### NS as follows: 1. On and afier April 20, 2001 JVS shall have in its possession approved DERCs for Boiler 

### #2; shall document and record the amounts ofall residual oil and approved DERCs used by Boiler #2; and shall maintain and provide such records in accordance with the following and Section 22a-174-4 ofthe 

### Regulations, until April 30, 

### 2007:

a. Before the first day ofeach month, JVS shall calculate projected DERCs 

### required for Boiler #2 for the next calendar month as follows: DERCs (tons) = (Estimated Residual Oil Use in MMBTU X (FLER(lb/MMBTU)

- [.95 x .25 Ib/MMBTU]))/2000pounds/ton 

### Where FLER means full load 

### emission rate referenced in paragraph C.5. of this Trading Agreement and Order; b. JVS shall have in its possession sufficient approved DERCs no later than tbe first ofeach calendar month to assure comoliance for, at aminimum, that month. Excess DERCs from previous months can be applied to subsequent months. Approved DERCs sball be acquired until JVS achieves 

### permanent compliance with the emission standard in Section 22a-174-22(e) ofthe Regulations;

.
c. DERCs shall only remain valid for five (5) calendar years from the year of 

### the generation ofsuch DERCs. DERCs generated more than five (5) calendar years ago are not valid for use. d. No later than the tenth day ofeach month, NS 

### shall calculate approved DERCs used in the preceding calendar month as follows: DERCs (tons) = (Actual Residual Oil Use 

### in MMBTU X (FLER{lbIMMBTU]

- [.95 x .25 IbIMMBTU)))/2000 poundslton



### e. Document and record monthly residual oil used by Boiler #2 and the approved DERCs used; f. DERCs required shall be adjusted upwards by 100% ifDERCs are not in 

### JVS's possession prior to use. However, based on the gravity ofthe

-4-Jacobs Vehicle Systems Trading Agreement and OrderNo. 8230 noncompliance, the Commissioner may require additional upward adjustment.

g. JVS shall notify the Commissioner io writing, within thirty (30) days from the date ofdiscovery ofany deficit io DERCs, and shall submit copies of supporfing calculations for review and approval by the Commissioner; h. No later than March 1 ofeach year this Trading Agreement and Order is in effect, JVS shall include with its annual emissions report to the Commissioner, the residual oil**consum~d** and approved DERCs used monthly for the previous calendaryear;

I. JVS shall keep records and supporting documentation as described in this section for a minimum offive years, commencing on the date such records are created.; 

### J. JYS shall keep documenlation to demonstrate that DERCs used during the ozone season were generated during the ozone season. The ozone season is from May 1 through September 30 in any calendar year. Generator certification ofthis fact shall be sufficient; and k. 

### NS shall submit the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. I. Pursuant to Section 22a-174-22(d)(3) ofthe Regularions, JVS may use NOx allowances, through April 30, 2007, pursuant to Subsection (j) ofSection 22a-174-22 ofthe Regulations to achieve all or a porrioD ofme reductions required by Section 22a-174-22 ofthe Regulations. Any allowances used for compliance with Section 22a-174-22(e) ofthe RegUlations shall be subject to all restrictions andlor requirements applicable to DERCs contained in this Trading Agreement and Order.

m. . In order for 

### NS to use 

### NOx allowances, JVS shall create a general account in EPA's NOx Allowance Tracking System ("NATS"); and D. 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 Secrion 22a-174- 22 ofthe Regulations when they are transferred from the facility's 

### NOx

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### Jacobs Vehicle Systems TradingAgreement and OrderNo. 8230 general account in the NATS to the CT State 

### NOx Retirement Account (Account ID CTOOO0000300 in the NATS). 

### 2. ]VS shall nO[ burn residual oil in Boiler #1 without modification ofthis Trading Agreement and Order. 

### 3. NS shall not"operate Boiler #1 at afiring rate above 13.2 MMBru/hr while burning natural gas. NS 

### shall not operate Boiler #2 at afiring rate above 13.2 MMBtu/hr while burning natural gas or 14.5 MMBtu/hr while burning residual fuel oil. 4. 

### JVS shall, on adaily basis, document and record fuel consumption, heat input, and hours ofoperation for each boiler as necessary to demonstrate compliance with paragraph C3. 5. On and after the effective date ofthis Trading Agreement and Order, until April 30,2007, during operation ofBoilers #1 and #2, 

### NS shall not exceed the following FLERs: The FLER for Boiler #2 when burning residual oil is 0.45 Ib/MMBtu. Boilers #1 and #2 shaJJ comply with the NO, rate of0.20 Ib/MMBtu 

### when burning natural gas. 

### 6. No later than April 30, 2007, JVS shall comply with the requirements ofSection 22a-174-22(e)(I) ofthe Regulations. However, after fuJi program review ofthis 

### and oilier Trading Agreements and Orders and, ifdetermined to be 

### appropriate, the Commissioner may grant awrinen extension ofthis Trading Agreement and Order. 7. The FLERs may be modified only after the consent ofthe Commissioner by 

### wrinen modification ofthis Trading Agreement and Order. 8. Exceedance ofan established FLER shall subject JVS to make restitution by matching the quantity ofemissions ("true up") caused by the exceedance plus a 100% premiumpenalty. The true up in tons ofDERCs shall be equal to the FLER exceedance in Ibs/MMBtu, multiplied by the total heat input during the period of 

### non-compliance divided by 2000 lbs/ton. Ifthe period ofnon-compliance is nor known, the time period from the completion ofthe last/previous Department witnessed. stack test through the dare the 

### FLER compliance is achieved as approved by the Commissioner shall be used. However, nothing 

### inthis TradingAgreement and Ordershall affectthe Commissioner's authorityto institute anyproceeding or ta.leeanyotheraction to require additional upward adjustment, based on thegravityof anyalleged noncomplianceorviolation oflaw. 

### -6-Jacobs Vehicle Systems Trading Agreement and Order. o. 8230

9. JVS shall conduct NOxemission tests ofthe Boilers at least once every five years commencing from the dates ofthe applicable emission test for the boilers in accordance with the methodology in Section 22a·174·22(k) ofthe Regulations. 10. Approvals. JVS**~hall** use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Order in a complete and approvable form. Ifme Commissioner nOtifies JVS that any document or other action is deficient, and does not approve it with conditions or modifications, it 

### is deemed disapproved, and JVS 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 Agreement and Order, the Commissioner may approve the document or oilier action as submitted or performed or with such conditions or modifications as the Commissioner deems necessary to carry Out the purposes of this Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay. 11. Definitions. As used in this Trading Agreement and Order, "Commissioner" means the Commissioner or a representative of the Commissioner; "Ozone season" means the period from May 1 through September 30 in any given calendar year. 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. 12. Dates. The date ofsubmissionto the Commissionerofany documentrequiredby this Trading Agreement and Order shall bethe date such document is received by the Commissioner. The date ofanynotice bythe Commissionerunder this Trading Agreement and Order, including but not limited to notice ofapproval ordisapproval ofanydocumentorotheraction, shall be the date such notice is deposited inthe U.S. mail oris personallydelivered, whicheveris earlier. Except as otherwise specified in this Trading Agreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendarday. Anydocumentor action which is requiredby this Trading Agreement and Order to be submitted orperformedby a date which falls on a Saturday, Sunday oraConnecticut orfederal holiday shall be submitted orperformedby the nextdaywhich is not a Saturday, Sundayor Connecticutorfederal holiday. 13. Certification ofdocuments. Anydocument, including but not limited to any notice, which is required to be submitted to the Commissionerunderthis Trading Agreement and Order shallbe signed bythe responsible corporate officerof

### NS or -7-Jacobs Vehicle Systems Trading Agreement and OrderNo. 8230

aduly authorized representative ofsuch officer, as those terms are defined in Section 22a-430-3(b)(2) ofthe Regulations, and by the individual or individuals responsible for actuallypreparing such document, each ofwhom shall examine and be familiar with the information submined in the document and all attachments thereto, and shall make inquiryofthose individuals responsible forobtaining the infonnation to determine that the information is true, accurate, and complete, and each ofwhom shall certifyin: writing as follows:

"Ihave personallyexamined and am familiar with the information submitted in this document and all attachments thereto, and Icertify, based on reasonable investigation, including myinquiryofthose individuals responsible forobtaining the information, thatthe submitted information is true, accurate and complete to the best ofmyknowledge and belief. I understand that anyfalse statementmade in the submitted information is punishable as acriminal offense under Section 22a-l

# is of the Connecticut General Statutes or, 

### in accordance with Section**22a~6** ofthe Connecticut General Statutes, under Section 53a-157b ofthe ConnecticutGeneral Statutes, and in accordance with anyother applicable statute."

14. Noncompliance. This Trading Agreement and Order is a fmal 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 subjectJVS to an injunction and penalties. 15. False statements. Any false statement in any information submined pursuant to this Trading Agreement and Order 

### is punishable as a criminal offense under Section 53a-157b ofthe ConnecticufGeneral Statutes and anyother applicable law. 16. Notice oftransfer; liability ofJVS. Until JVS has fully complied with this Trading Agreement and Order, JVS shall notify the Commissioner in writing no later than fifteen (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. JVS's obligations underthis consent order shall not be affected by thepassage oftitle to anypropertyto anyother person ormunicipality.

17. Commissio"ner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding or take any other action 

### -8-Jacobs Vehicle Systems Trading Agreement and OrderNo. 8230

to prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to imposepenaltiesJarpast, present, or future violations oflaw. 

### Ifat anytime the Commissionerdetennines that the actions takenby

### NS pursuantto this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extentordegree ofanypollution, or successfullyabated orpreventedpollution, the Commissionermay institute any proceeding torequire

### NS to undertake further investigation orfurther action to prevent or abate violations orpollution. 18. JVS's obli!!ations under law. Nothing in this Trading Agreement and Order shall relieve 

### NS ofother obligations under applicable federal, state and local law. 19. No assurance bv Conunissioner. No provision afthis 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 JVS pursuant to this Trading Agreement and Order will result in compliance or prevent or abate pollution.


### 20. Access to records and facility. Anyrepresentative ofthe Department of Environmental Protection may enterandinspectthe facility and inspect and copy records within normal business hours withoutpriornotice for the purposes of monitoring and enforcing the actions required orallowed by this Trading Agreement and Order. 21. No effect on ri2hts ofother persons. This Trading Agreement and Order neither creates nor affects any rights ofpersons who or municipalities which are not parties to this Trading Agreement and Order. 22. No Creation ofProperty Ri2:hts. This Trading Agreement and Order does not create·any property rights with respect to these DERCs. 23. Notice to Corrunissioner ofchanges. Within fifteen (15) days ofthe date 

### NS becomes aware ofa 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, JVS shall submit the correct or omitted infOrmation to the Commissioner.



### 24. Notification ofnoncompliance. In the event that JVS become.s aware that it did not or may not comply, or did not or may not comply on time, with any requiremenr 

### -9-Jacobs Vehicle Systems Trading Agreement and Order No. 8230

ofthis Trading Agreement and Order or ofany document required hereunder, 

### NS 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. 

### NS shall also notify the Commissionerin writing within ten days ofbecoming aware ofthe noncompliance orpotential noncompliance stating the date, time, and duration ofthenoncompliance, the reasons for the noncompliance or delay and all activities which JVS and its agents, employees and representatives took to avoid or repair the results ofthenoncompliance and prevent the noncompliance, and propose, for the review and written approval ofthe Commissioner, dates by which compliance will be achieved. 

### NS shall complywith anydates, which may be approved in writing bythe Commissioner. Notification by

### NS shall not excusenoncompliance or delay, and the Commissioner's approval ofanycompliance dates proposed shall Dol excusenoncompliance ordelayunless specifically so stated by the Commissioner 

### in writing.

25. 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 or in writirlg by the Commissioner, be directed to: 

### Mr. Michael LaFleur Department ofEnvironmental Protection Bureau of

### AirManagement 

### Compliance

### andFieldOperations Emission and CreditTrading Section 

### 79ElmStreet Hartford, Coonecticu! 06106

JVS consents to the issuance ofthis Trading Agreement and Order without further notice. The uII:dersigned certifies that helshe is fully authorized to enter into this Trading Agreement
-10-

### Jacobs Vehicle Systems Trading Agreement and OrderNo. 8230

and Order and to 

### legally bind JVS to 

### the terms and conditions ofthe Trading Agreement and Order. Signarure:

# ~h~ Type Name: Anthony Guerrero 

### Type Title: Compliance Engineer



### Arthur J. 

### cqQe, J)./ 

# COmrrllS( ner 

# k' 

# U

LAND RECORDS ! 

### Issued as afinal order ofthe Commissioner otiE viro 2002. 

### Date:

TOWN OF BLOOMFIELD MAJLED CERTIFIED MAJL, RETURN RECEIPT REQUESTED 

### Certified Document

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