SIP DESCRIPTION Middletown Power LLC Trading Agreement and Order No. 8214A Modification 1 I. SIP

- DESCRIPTIO' OF DERC CREATION AND/OR USE SIP SUMMARY TABLE Tradin2 A2reement and OrderNo. 8214A Middletown Power LLC 1866 RiverRoad Middletown CT 06457 Identifier 

# I Client 7741 Town # 104 Premise #

# 241 Sequence #

### 2. Contact Ms. Cynthia Karlic Tel: (860) 343-6962 Fax (860) 343-6969 Regional Manager Pollutant and Regulatory Standard: NOx 

# ISection 22a-174-22 ofthe Regulations of Connecticut State A.'!:encies. Nonattainment Area Classification Severe Annual DERCs needed Estimated 150non-ozone Annual DERCs 2enerated Estimated50 ozone (BDERCs) Compliance Time Period Until A01;130, 2007. Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and Use. (SeeTable I below):

Table 1 NOx Emission Rates and Allowable Limits Unit Fuel 

### Maximum Stack Test FLER Allowable Date of Next PIR number Capacity (ppmvd) IbsIMMBru Rate Stack Stack MMBruIhr IbsIMMBru Test Test Due Boiler3 #6 oil 2370 CEM CEM 0.43 NA NA R· 104-0100 #2 oil 

### " 

### " " 0.17 

### " " Nat. gas 

### " " " 0.43 

### " " Non-olonec 

### " " " 0.15 

### " "



# n. SPECIAL REQUIREMENTS

a. This Trading Agreement and OrderModification supersedes Trading Agreement and Order o. 8214A issued on April 30, 2003. b. Calculations ofcredits used or generated shall be as specified in Trading Agreement and Order No. 8214A.

c. Starting on October 1, 2003 and until April 30, 2007 during the non-alone season; For purposes ofgenerating DERCs from the boiler at the facility, Middletown Power LLC shall use 0.15 IbslIvlMBtu ofheat input when operating on No.6 fuel oil, No.2 fuel oil and/or natural gas as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofali DERCs (tons) generated by the boiler shall be retired by the facility and pennanently removed from all calculations on a non-alone season basis to assure a benefit to the envirorunent.

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTIClIT AND MIDDLETOWN POWER LLC

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## ~8iJ.y======i=fR ADING AGREEMENT

# AND ORDER NO. 8214A MODIFICATION NO. I

TRADING AGREEMENT AND ORDER MODIFICATION 

### In the matterofa Trading Agreement and Orderbetween the Commissioner ofEnvironmental Protection ("Commissioner") and Middletown Power LLC ("MP"). 

### WHEREAS. the 

### Commissionerand MP. having agreed to 

### the terms and conditions setforth in Trading Agreement and OrderNo. 8214A issued on Apri130, 2003, do now, by mutual agreement, modify saidTrading Agreement and Orderas follows: 1. 

### Delete the date September30,2004, and substitute therefor May 1, 2oo?, 

### in paragraphs A.9., C.l., C.2., C.3.a., C.3.a. footnote 3, C.3.b., C.3.c., C.3.d., C.3.e., C.3.f., and C.6. 

### 2. Delete paragraph A.6. and substitute the following therefor: Pursuant to Section 22a-174-22U) ofthe Regulations, 

### :rv:tP intends both to acquire and generate approved DERCs until May I, 2007 for boiler 3 at the facility. 

### Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissioner has provided written authority for use in compliance with Section 22a-174-22 ofthe Regulations. 3. Delete paragraph 

### B.l. and substitute the following therefor: Comply with Section 22a-174-22(d)(I) ofthe Regulations through use ofBudget Discrete Emission Reduction Credit ("BDERC") andDERC trading. 4. Delete paragraph C.6.b. and substitute the following therefor: 

### During the non·ozone season: During the period from October 1 through April 30, inclusive, each year until May 1,2007, the boiler shall, in addition to meeting the 24-houremission limit in Table 22-1 ofSection 22a·174-22 ofthe Regulations, meet a**non~ozone** season emission limit of0.15 IblMMBtu. Prior to October I, 2003, October 1,2004, October I, 2005, and October 1, 2006,:MP shall estimate and acquire the amount (Printed on Recycled Piper) 79 Elm SHeet • Hlnford, CT 06106·5127 hItp:lldep.$111e.ct.U$Middletown Power LLC 

### 2 Trading Agreement and Order No. 8214A Modification No. I ofnon-Olone season 

### DERCs or 

### allowances needed to 

### comply 

### with Section 22a174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

### = [Estimated fuel use in MMBtu from October I through 

### April 30 x (lower ofthe estimated seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit

### in Ibl?v1J.\1Btu during October 1 through April 30

- (0.95 x 0.15 IblMMBtu))J'" 2000 pounds/ton. No later than May 31 of2004,2005,2006, and 2007, in addition to the DERCs retired pursuant to paragraph C.6.a. ofthis Trading Agreement and Order, MP 

### shall calculate and permanently retire DERCs used in the preceding non-Olone season as follows: Actual DERCs (tons) 

### = [Actual fuel use in MMBtu from October I through April 

### 30 x (lowerofthe actual seasonal average NOx emission ratc orthe proportioned 24-hour allowable emission limit in lbtM:MBtu during October 1through April 30

- (0.95 x 0.15 IblMMBtu))J

... 2000 pounds/ton. 5. Delete paragraph C.lO. and substitute the following therefor: Annual Emission Statement and Non-Ozone Season Emission Statement. No later than March I for the previous calendaryear andJuly 30 (for the October through 

### April time period 

### only staning in 2003) ofevery year after issuance ofthis Trading Agreement and Order, MP shall provide to the Commissioner. arecord of each sale orother transfer, and use ofany and all ofthe DERCs approved within and subsequentto issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used or are no longer in MP's possession. MP shall also include actual NOx emissions from the boilerand the amount ofall 

### DERCs used (including serial numbers (ifassigned) and approved DERCs generated andlor

. purchased from otherfacilities), generated andlor approved forthe previous calendar year and October through April time period. These reports shall be on a 

### form prescribed by the Commissionerand shall be 

### in monthly increments, and by ozone and non-ozone seasons. 6. Delete paragraph C.12. and substitute the following therefor: DERC ShQrtfall. At a minimum, DERCs required shall be adjusted upwards by 

### 100% ifDERCs are not in MP's possession foruse prior [0 the first clay ofeach month or applicable season. However, nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any otheraction to require additional upward adjustment, based on the gravityof any alleged noncompliance or violation oflaw. MP shall pennanently retire the quantity ofemissions caused by the exceedance plus a 100% premium withinMiddletown Poweru..C 

### 3 

### Trading Agreement and Order No. 8214A Modification No.1 sixty (60) days ofMiP's discovery ofthe DERC shortfall. MiP shall certify and 

### report any such DERC retirement to 

### the Commissionerin accordance with paragraph C.31 ofthis Trading Agreement and Order. 7. Delete paragraph C.14. and substitute the following therefor: Extension. No later than May 1, 2007, with respect to the boiler, MiP shall comply with the requirements ofSections 22a-174-22(d)(I) and 22a-174-22(d)(2)(A) of 

### the Regulations. There is no assurance that after full program review ofthis and otherTrading Agreements and Orders that the Commissioner will grant awritten extension ofthis Trading Agreement and Order. 8. Delete paragraph C.15. and substitute the following therefor: 

### Future Compliance Report. On orbefore September 1, 

### 2006, 11P shall submit a report in writing to the Commissioner, as directed in paragraph C.32. ofthis Trading Agreement and Order, indicating how the facility shall comply with 

### section 22a-174-22 ofthe Regulations with respect to the boiler on and after May 1,2007. 

### All other tenns and conditions ofTrading 

### Agreement and Orderno. 8214A issued by the Commissioneracting under Chapter446c, 

### Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a177 ofthe Connecticut General Statutes shall remain in effect.Middletown Power LLC 

### 4 

### Trading Agreementand Order No. 8214A Modification No.1 

### MP herebyconsents to the entry ofthis modification to the Trading Agreementand Order without further notice. Middletown PowerLLC Signature: 

### Type Name: Type Title: Date: 

# == R®J!!na/ 

# t:f\VI'ronmerrraJ**rno~tr** q-/S-Olj Entered as amodification ofan Order ofthe Commissionerpf

### Environmental Protection

ArthurJ. R que, 

### Jr.) 

### Commissioner 

# L,-/ numbered 8214A this

# --,/c:..::~=-d.- day of

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MAILED CERTIFIED MAll..,



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