SIP DESCRIPTION - Middletown Power LLC Trading Agreement and Order No. 8215A Modification 1 I. SIP

- DESCRIPTION OF DERC CREATION AND/OR USE SIPSUMMARYTABLE TradinQ' AQreement and Order No. 821SA Middletown Power LLC 1866 River Road Middletown

## cr06457 Identifier 

# IClient 7741 Town # 104 Premise #

## 241 Sequence # Contact Ms. CynthiaKarlic Tel: (860) 343-6962 Fax (860) 343-6969 RC2ionaiManager Pollutantand Regulatory Standard: NOx 

# I Section 22a-174-22 ofthe Regulations of Connecticut State Agencies. Nonauainment Area Classification Severe Annual DERCs needed Estimated 

### to non..<Jzone Annual DERCs l!cnerated Estimated 50 ozone (BDERCs) ComDlianceTime Period Until Aotil 30 2007. Max. Emission Rate: CEM and full load emission rate (FLER) for Generation and Usc. (Sec Table I below):

Table 1 NOx Emission Rates and Allowable Limits Unit Fuel Maximum Stack Test FLER Allowable Date of Next PlRnumber Capacity (ppmvd) IbsIMMBtu Rate Stack Stack MMBtulhr IbsIMMBtu Test Test Due Boiler4 #6 oil 4684 CEM CEM 0.25 NA NA P-I04-0001 #2 oil " " " 0.17 " " Non-olonec " " 

### " 0.15 " " II. SPECIAL REQUIREMENTS

a. This Trading Agreement and OrderModification supersedes Trading Agreement and Order No. 8215A issued on April 30, 2003. b. Calculations of**~redits** used or generated shall be as specified in Trading Agreement and OrderNo. 8215A.

c. Starting on October I, 2003 and until April 30, 2007 during the non-ozone season: For purposes ofgeneratingDERCs from the boiler at the facility, Middletown Power LLC shall usc 0.15 IbsIMMBtu ofheat input when operating on No.6 fuel oil, No.2 fuel oil andlor natural gas as the non-ozone season baseline emission rate for the boiler. Ten (10) percent ofall DERCs (tons) generated by the boilershall be retired by 'he facility and permanently removed from all calculations on anon-ozone season basis to assure a benefit to the environment.

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT AND MIDDLETOWN POWER LLC

# i~~ © 0

# ~][~**~1** 1°1 V! 

# i Uu su:} 1 

### ccD4 l'J1RADING AGREEMENT

### AND 18y 

### --ORDER NO. 8215A MODIFICATION NO.1

TRADING AGREEMENT

### AND ORDER MODIFICATION In the matter ofaTrading Agreement and Orderbetween the Commissioner ofEnvironmental Protection ("Comrrtissioner") and Middletown PowerLLC ("MP"). WHEREAS, the Commissioner and 

### tv1P, having agreed to the terms and conditions set forth in Tra.ding Agreement and Order No. 8215A issued on April 30, 2003. do now, by mutual agreement, modify said Trading Agreement and Order as follows:

2. Delete paragraph A.6. and substitute the following therefor: 

# o 1. Delete the date September 30, 2004, and substitute thereforMay 1, 2007, in 

### paragraphs A.9., C.I., C2., C3.a., C.3.a. footnote 3, C.3.b., C.3.c., C3.d., C3.e., C3.f., and C6.

Pursuant to Section 22a-174-220) ofthe Regulations, MP intends both to acquire and generate approvedDERCs until May 1, 2007 for boiler4 at the facility. 

### Approved DERCs are defined for purposes ofthis Trading Agreement and Order as those for which the Commissionerhas provided written amhority for use in compliance with Section 22a-174-22 ofthe Regulations. 3. Delete paragraph B.1. and substitute the following lherefor: 

### Comply with Section 22a-174-22(d)(I) ofthe Regulations through usebfBudge' Discrete Emission Reduction Credit ("BDERC") and DERC trading.



### , 

### . 

## ') 4. Delete paragraph C.6.b. and substitute the following therefor: During the non-ozone season: During the period from October 1through April 30, inclusive, each yearuntil 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 anon-alone season 

### emission limit of0.15 IblMMBtu. Prior to 

### October 1,2003, October 1,2004, October 1,2005, and October 1,2006, MP shall estimate and acquire the amount ofnon-Olone season DERCs or allowances needed to comply with Section 22a- (Printed on Recycled PIper) 79 Elo Street • Hartfold, CT 06106·5127 http://dcp.S1ltC.CI.us All £qucl Opp<Ulu,,,'ry Employu

### Middletown Power LLC 2 

### Trading Agreement and Order No. 8215A Modification No. I



# r) 1,_.

, 

# - , 

## , U 5.



### 6. 174-22(e)(3) ofthe Regulations as follows: Estimated DERCs (tons) 

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

### April 30 x (lowerofthe estimated seasonal average NOx emission rate or the proportioned 24-hour allowable emission limit in !b/M]yffiruduring 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 pursuantto paragraph C.6.a. ofthis Trading Agreement and Order. MP shall calculate and pennanenlly relire DERCs used in the preceding non-ozone season as follows: Actual DERCs (tons) 

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

### 30 x (lowerofthe actual seasonal average NOx emission rate orthe proportioned 24-hour allowable emission limit in IblMMBtu during October I through April 30

- (0.95 x 0.15 IblMMBtu))] + 2000 pounds/ton. 

### Delete paragraph C.lO, and subslitute the following therefor: Annual Emission Statement and Non-Ozone Season Emission Statement. No later. than March I for the previous calendaryear and July 30 (for the October through 

### April time period only starting in 2003) ofevery year after issuance ofthis 

### Trading Agreement and Order, MP shall provide to the Commissioner, arecord of each sale ororner transfer, and use ofany and all ofthe DERCs approved within and subsequent to 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 approvedDERCs generated and/or purchased from otherfacilities), generated and/or approved for the previous calendar year and October through April time period. These reports shall·be on a 

### fonn prescribed by the Commissionerand shall 

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

### 100% ifDERCs are notin MP's possession for use prior to the first day ofeach month or applicable season. However, nothing in this Trading Agreement and Ordershall affect the Commissioner's authority to institute any proceeding or take any otheraction to require additional upward adjustment, based on the gravity of any alleged noncompliance or violation oflaw. MP shall pennanently retire the quantity ofemissions caused by the exceedance plus a 100% premium within sixty (60) days ofMP's discovery ofthe DERC shortfall. MP shall certify andMiddletown Power liC 

### 3 Trading Agreement and Order No. 8215A Modification No. I 

### report any such DERC retirement [0 

### 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, MP 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 I, 2006, MP shall submit a repon 

### 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 boileron and after May 1,2007. "') "All otherterms and conditions ofTrading Agreement and Order no. 8215A issued bythe Commissioner acting underChapter446c, Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a

### 177 ofthe 

### Connecticut General Statutes shall remain in effect.



# u

### Middletown Power LLC 4 

### Trading Agreement and Order No. 82lSA Modification No.1 

### MP herebyconsents to the entry ofthis modification to the Trading Agreement and Order without further notice. Middletown PowerLLC 

### Signature: Type Name: Type Title: 

### Date: 

# ::::/t:::**~t&DrnL** f:-nv;ronrnet\({)!

# (YBn~er 9-/5-01./ Entered as amodification ofan Orderofthe Commissioner ofEnvironmental Protection numbered 821SA this

# _..:~-,,-~ __ dayof

# ""'!~%~~'l}f)4

MAJLED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED 

### Certified DocumentNo.