# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

Cynthia L. Karlic, Regional Environmental Manager NRG Energy, Inc. 

### P.O.Box 1001 1866 River Road Middletown, CT 06547 

### Re: Nitrogen Oxide ("NOx") Trading Agreements and Orders # 8300 and 8306 Dear Ms. Karlic: Enclosed are copies ofTrading Agreements and Orders (TA&Os) #8300 and 8306. The TA&Os are now enforceable by the State ofConnecticut. Overthe next few months the Department will be taking steps to revise the annual reporting forms that you have become familiar with overthe years to facilitate compliant submission ofthe repOlis required underthe TA&Os. When these forms are complete, electronic versions ofthe forms and instruction will be provided for your use. Until then, NOx Trading Program participants may generate their own forms for the reports required under the TA&Os. The terms ofthe new TA&Os need to be incorporated into the Title V Operating Permits for your facilities, ifyou have such. To do so, please kindly submit applications for minor permit modifications to your existing Title V Permits in accordance with Section 22a-174-2a ofthe Regulations ofCOlmecticut State Agencies. Ifyour facilities are likely to violate the TA&Os due to an inability to acquire DERCs or Allowances, you should submit notice in accordance with the Notice ofNoncompliance paragraph ofthis TA&Os. In such Notice, you should demonstrate that all reasonable efforts to procure DERCs and/or Allowances were exhausted prior to submission ofthe Notice. Should you have any questions regarding this letter or the TA&O, please contact me at (860) 424-3462. Sincerely,

# /lIW~r;~ Michael LaFleur Air Pollution Control Engineer 3

(Printed on Recycled Paper) 79 Elm Street • Hartford, CT 06106·5127 www.cLgov/dep An Equal Opportunity Employer

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

State ofConnecticut and NRG Energy, Inc., Middletown Power LLC, NRG Middletown Operations Inc., Montville Power LLC, NRG Montville Operations Inc., Norwalk Power LLC, NRG Norwalk .Harbor Operations Inc. 

### ) ) ) ) ) 

### ) ) ) 

### Trading Agreement and OrderNo. 8306

WHEREAS, the Commissioner ofEnvironmental Protection ("Commissioner") and NRG Energy, Inc., et al. ("Respondents") agree that the Commissioner may issue a permit or order to allow emissions trading in accordance with Section 22a-174-22G) ofthe Regulations ofConnecticut State Agencies ("Regulations") as a method ofcompliance with Section 22a-174-22 ofthe Regulations: A. At the request and with the agreement ofRespondents, the Commissioner finds the following: 1. This Trading Agreement and Order supersedes Trading Agreement and Orders 8213A, 8214A, 8215A, 

### 8216A, 8217A, and 8218A and all subsequent modifications thereto. 2. Respondents own and operate electricity generation facilities in Connecticut ("facilities"). 3. Atthe facilities, Respondents operate the emission units described inTable 1 below, which are subject to Section 22a-174-22 ofthe Regulations ofConnecticut State Agencies ("Regulations") pertaining to the control ofNitrogen Oxide (NOx) emissions. 4. Forthe purposes ofthis Trading Agreement and Order, the following definitions shall apply:

a. Allowable Emission Limit (AEL): the applicable NOx emission limit set forth in Section 22a-174-22(e) or Section 22a-174-22(f) ofthe Regulations cOlTesponding to each emission unit described in Table 1 ofthis Trading Agreement and Order b. Allowance: CAIRNOx Ozone Season allowance originally allocated to a CAIRNOx Ozone Season unit, as defined in Section 22a-174-22c ofthe Regulations, located in the State ofConnecticut or aNOx allowance designated specifically for compliance during Ozone Season control periods and allocated to a CAIRNOx Ozone Season unit located in the State of Connecticut after the date ofissuance ofthis Trading Agreement and Order.

(Printed on Recycled Paper) 79 Elm Street • Hartford. CT**06106~5J27** www.ct.gov/dep An Equal OpporrunityEmployerNRG Energy, Inc., et al. 2 Trading Agreement and OrderNo. 8306

c. CAIRNOx Ozone Season unit: shall be as defined in Section 22a-174-22c of the Regulations d. CEMS: Continuous Emissions Monitoring System

e. Discrete Emission Reduction Credit (DERC): a unit thatwas generated and approved by the Commissioner in accordance with a Trading Agreement and Order issued by the Commissioneror generated and approved by the Commissioner in accordance with aprotocol submitted and approved pursuant to Section 22a-174-38 ofthe Regulations. Such unit is equivalentto 1 ton of NOx emissions and may be used for emissions trading in accordance with Section 22a-174-22(j) ofthe Regulations, subjectto the provisions ofPartB of this Trading Agreement and Order. f. Non-AttainmentArea: means the geographic area which has been designated as nonattainmentpursuantto 40 CFR 81 in accordance with the provisions of

, 42 USC 7407 (Section 107 ofthe Act). Pursuantto 40 CFR 81.307, the

designated ozone non-attainment areas in the State ofConnecticut are: the Greater Connecticut, CT area and the New York-Northern New Jersey-Long Island, NY-NJ-CT area. g. CAIR NATS: "CAIRNOxOzone Season Allowance Tracking System" as defined in 40 CFR 96.302. h. Ozone Season: May 1 through September 30 ofeach calendaryear or such period as defined by the U.S. Environmental Protection Agency, subsequentto the issuance ofthis Trading Agreement and Order. 

### i. Non-Ozone Season: the period ofconsecutive calendarmonths between two successive Ozone Seasons j. ppmvd: parts permillion, by volume, dry basis

Table 1 CAIR NOx Ozone Season UnitsAllowable Limits (IbslMMBtu, unless otherwise noted) UNlT- Fuel Heat Allowable Emissiou Limit reg. or permit no. Input (AEL) (MMBtnl Middletown Unit 2 No.6 1,295 0.25 I R104-0098 No.2 0.20 

### I NatOas 0.15 non-ozone season average, regardless offuels burnedNRG Energy, Inc" et al. 

### 3 Trading Agreement and OrderNo. 8306 Table I CAIR NOx Ozone Season Units- 

### I Allowable Limits (IbslMMBtu unless otherwise noted) I Middletown Unit 3 No,6 2,370 0.43 R104-0100 No,2 0.43 Nat Gas 0,15 non-ozone season average, regardless offuels burned Middletown Unit 4 No.6 4,684 0.25 P104-0003 No.2 0.15 non-ozone season average, regardless offuels burned Montville Unit 5 No.6 995 0,25 RI07-0017 Nat Gas 0.20 0.15 non-ozone season average, regardless offuels burned 

### I Montville Unit 6 No,6 4,658 0.25 RI07-0020 No.2 0.15**non~ozone** season average, regardless offuels burned Norwalk Unit 1& 2 No,6 1,776 each 0,25 R137-0028 No,2 0,20 R137-0030 0.15 non-ozone season average, regardless offuels burned

5. The Respondents agree that the actual NOx emissions rate from the emission units described in Table I, attimes, exceed the corresponding AELs. 6. The Respondents and the Commissioner agree that the actual 24-hour, block average NOx emission rate from the emissions units described in Table I, attimes, may be less than the corresponding AELs. At such times, the Respondents propose to generate DERCs. 7. Pursuantto Section 22a-174-22(j) ofthe Regulations, Respondents propose to comply with Section 22a-174-22(e

- f) ofthe Regulations, when operating the emission units described in Table 1 by means ofemissions trading in accordance with the provisions of this Trading Agreement and Order. 8, The Respondents propose to use the actual 24-hour !\verage emissions rate measured by CEMS for the purposes ofcalculating Actual DERCs generated andlor Actual DERCslAllowances Required for the emissions units described in Table 1. The Commissioner, in accordance with Section 22a-174-22(j) ofthe Regulations hereby allows Respondents to comply with Section 22a-174-22 ofthe Regulations atthe facilities through the use ofemissions trading, subjectto the provisions ofthis Trading Agreement and Order. B. With the agreement ofRespondents, the Commissioner, acting under Sections 22a-6, 22a-174, 22a176, and 22a-l77 ofthe ConnecticutGeneral Statutes, hereby orders Respondents as follows:

1. The Respondents may use emissions trading, subjectto the provisions ofthis Trading Agreement and Orderuntil the earlierof:

a. May 31, 2014; b. The Commissioner issues written notice to the Respondents stating thatthe Respondents are no longer allowed to use emissions trading due to the Respondents' violation ofany provision ofthis Trading Agreement and Order;NRG Energy, Inc., et al.

or 4 Trading Agreement and OrderNo. 8306

c. The Commissioner issues written notice to the Respondents notifying the Respondents that the Commissioner has determined the use ofemissions trading as a compliance option has been further restricted, modified ornullified by: (i) the promulgation ofan Act, Statute, orRegulations; or (ii) the issuance ofajudgment or court order. 2. Control Technology Evaluation: Not more than 12 months from the date ofissuance ofthis Trading Agreement and Order, the Respondents shall submit a control technology evaluation to reduce emissions ofNOx from the emissions units described in Table 1 to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a-174- 22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances orDERCs. Such evaluation shall include but notbe limited to the following:

a. A detailed description ofall subjectemissions units, currently installed emissions controls equipment and methods, all currently installed emissions monitoring systems; b. A detailed description ofany and all additional or alternative emissions control equipment and methods or, combinations thereof, that are capable of reducing NOx emissions from subjectemissions units to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a174-22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances orDERCs;

c. An evaluation ofcapital costs, annual operating costs, and total annualized $/ton costs associated with the installation and operation ofany and all additional or alternative emissions control equipment and methods, or combinations thereof, that are capable ofreducing NOx emission from the subjectunits to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances or DERCs; d. An estimated schedule for the design, procurement, installation and operation ofany additional or alternative emissions control equipment and methods, or combinations thereof, that are capable ofreducing NOx emission from the subjectunits to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances or DERCs;

e. A detailed description ofany adjustments and/or modifications that mustbe made to the emissions monitoring systems for the subjectemission units in orderto demonstrate compliance with, at least, Section 22a-174-22 oftheNRG Energy, Inc., et al. 5 Trading Agreement and Order No. 8306 Regulations as may be amended, without using, tendering, or otherwise acquiring Allowances orDERCs; and f. A detailed description ofany collateral environmental impacts that will result as a direct consequence ofthe Respondents' use ofadditional/alternative emissions control equipment and methods to reduce NOx emissions to, at a bare minimum, a rate or concentration that complies with the applicable limits ofSection 22a-174-22 ofthe Regulations as may be amended, withoutusing, tendering, or otherwise acquiring Allowances orDERCs; 3. While using emissions trading in accordance with this Trading Agreement and Order, the Respondents shall obtain and use sufficientDERCs and/or Allowances in such a manner as to comply with Paragraphs B.8 and B.I0 ofthis Trading Agreement and Order. All Allowances used must come from an emission unitthat is within the same ozone nonattainment area as the emission unit seeking to use the Allowances for compliance with this Trading Agreement and Order. Any Allowances used to comply with this Trading Agreement and Order mustbe allocated for the control periodthat occurs during the same year those allowances are used for compliance with this Trading Agreement and Order. All DERCs used during the Ozone Season for the emissions units described in Table 1, shall have been generated during an Ozone Season. 4. Priorto using Allowances to comply with this Trading Agreement and Orderthe Respondents shall obtain a General and/or Compliance Account in the CAIRNATS. 5. Vintage Restriction. Forthe purposes ofcompliance with Section 22a-174-22 ofthe Regulations and the provisions ofthis Trading Agreement and Order, DERCs shall only remain valid for five (5) calendaryears from the year ofthe generation ofsuch DERCs. DERCs olderthan five (5) calendaryears from their creation are not valid for use for compliance with Section 22a-174-22 ofthe Regulations and the provisions ofthis Trading Agreement and Order 6. Ozone Season Fuel Use Restriction: Notwithstanding the provisions ofParagraph B.3 ofthis Trading Agreement and Order, when operating the emission units described in Table Iduring the Ozone Season, the Respondents shall operate those units while firing or co-firing the lowestNOx emitting fuel type or combination offuel types that the units are physically able to burn to achieve the units' rated electricity output, according to the Independent System Operator- New England (ISO NE), and that the Respondents are authorized to burn in accordance with Departmental permit, registration, or applicable regulation. 7. Notwithstanding Paragraph 

### B. 6 ofthis Trading Agreement and Order, during the Ozone Season, the Respondents may operate the emission units described above on fuels that result in higher emissions ofNOx, ifeither:

a. the availability offuel oil that complies with Paragraph B.6 is inadequate to meet the needs ofresidential, commercial and industrial users in this state and that such inadequate supply constitutes an emergency; orNRG Energy, Inc., et al. 

### 6 Trading Agreement and OrderNo. 8306 b. the supply ofgaseous fuels to the emission units is interrupted due to inadequate supply or in accordance with an interruptible supply agreementbetween the Respondents and the gaseous fuel supplier, or

c. the unit is operating in orderto conducttesting required by any governmental agency or auditing/testing required to demonstrate the abilityto satisfy commitments made to 

### ISO NE in the Forward Capacity and/or Locational Forward Reserve Markets. 8. DERC/Allowance Use. On the first day ofeach calendar month, the Respondents shall possess a quantity ofDERCs and/orAllowances that equals or exceeds the quantity ofActual DERCs Required and/orActual Allowances Required in that month. Compliance with Paragraph B.8 ofthis Trading Agreement and Order shall be determined as follows:

a. Before the first day ofeach month, Respondents shall estimate DERCs and/or Allowances required for such calendarmonth for each emission unit identified in Table 1 as follows: EstimatedDERCs/ Allowances Required = {(Estimated fuel use in MMBtu) x ((estimated 24-hr average NOx emission rate lb/mmbtu)

- (0.95 x AEL))} +2000 lbs/ton b. No laterthan the twentieth day ofeach month, Respondents shall calculate actual DERCs and/orAllowances used in the preceding calendarmonth for each emission unit described in Table 1 as follows: Actual DERCs/Allowances Required

## = :E{(Dailyfuel use MMBtu) x ((actual 24-hr average emission rate lb/mmbtu)

- (0.95 x AEL))} + 2000 lbs/ton For all days in the month where actual 24-hr average emissions rate> AEL 9. DERC Generation. No laterthan the twentieth day ofeach month, Respondents shall calculate actual DERCs generated in the preceding calendar month for each emission unit described in Table 1 as follows: Actual DERCs Generated (during ozone season only)} 

## = :E{(Daily fuel use MMBtu) x ((AEL)

- actual 24-hr average NOx emission rate lb/mmbtu))} + 2000 lbs/ton For all days in the month where actual 24-hr average NOx emissions rate 

### < AEL For any day in the month where the actual 24-hr average NOx emissions rate is attributed to burning solelyNo.2 fuel oil, AEL shall be 0.17 lb/mmbtu. Where daily fuel use and actual 24-hr average emission rate determinations shall

### NRG Energy, Inc., et al. 7 

### Trading Agreement and OrderNo. 8306 exclude data substituted in accordance with any missing data substitutionprocedures, including those allowed under Section 22a-174-22c ofthe Regulations and 40 CFR Part 75. Notwithstanding Paragraph B.5, all DERCs generated by Table I emission units in accordance with this paragraph shall expire I calendaryear afterthe date of generation and may only be used by CAIRNOx Ozone Season units. 10. Non-Ozone Season DERCI 

### Allowance Use. In addition to the requirements ofParagraph B.9 ofthis Trading Agreement and Order, on the first day ofeachNon-Ozone Season, the Respondents shall possess a quantity ofDERCs and/orAllowances thatequals orexceeds the quantity ofNon- Ozone Season Actual DERCsl 

### Allowances Required forthatNon-Ozone Season. Compliance with Paragraph B.IO ofthis Trading Agreement and Order shall be determined as follows:

a. Before the first day ofeach Non-Ozone Season, Respondents shall estimate DERCs and/orAllowances required for thatNon- Ozone Season for each emission unit described in Table I based an emission limitof0.15 lb/mmbtu as follows: Estimated Non-Ozone Season DERCs/Allowances Required 

## = {(EstimatedNon-Ozone Season fuel use in MMBtu) x «estimated average NOx Emission Rate lb/mmbtu)

- (0.95 x 0.15 lb/mmbtu))} + 2000 lbs/ton b. No laterthan thirty (30) days afterthe end ofeach Non-Ozone Season, the Respondents shall calculate Actual Non-Ozone Season DERCs and/orAllowances used duringthatNon-Ozone Season for each emission unit as follows: Actual Non-Ozone Season DERCs/Allowances Required 

## = {(ActualNon-Ozone Season fuel use in MMBtu) x «Non-Ozone SeasonAverage Actual NOx Emission Rate lb/mmbtu)

- (0.95 x 0.15Ib/mmbtu))} +2000 lbs/ton -:E( DERCS and/or Allowances Required for all months ofthe Non-Ozone Season calculated pursuantto Paragraph B.8) II. Non-Ozone Season DERC Generation. No laterthan thirty (30) days afterthe end ofthe NonOzone Season, Respondents shall calculate actual DERCs generated during the Non-Ozone Season from each emission unit described in Table I as follows: Actual Non Ozone Season DERCs Generated

## =

{Non-Ozone Season fuel use (MMBtu) x [(0.15Ib/mmbtu)

- Non-Ozone Season average emission rate (lb/mmbtu)]} + 2000 lbs/ton Where: Non-Ozone Season Average Emission Rate < 

### 0.15 lb/mmbtu; and Where Non-Ozone Season fuel use and Non-Ozone SeasonAverage Emission rate shall exclude missing data substituted in accordance with any missing data substitutionNRG Energy, Inc., et al. 8 Trading Agreement and OrderNo. 8306 procedures, including those allowed under Section 22a-174-22c ofthe Regulations and 40 CFR Part 75. 12. The Respondents shall retire ten (10) percent ofall DERCs (tons) generated by the emission units identified in Table 1, priorto use, and shall deduct them from any calculations of DERCs available and possessed bythe Respondents to assure a benefitto the environment. 13. On or before January 31 ofeach calendaryear, the Respondents shall deduct a quantity of DERCs from the currentbalance ofDERCs possessed by the Respondents and/or transfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Account to the CT State NOx Retirement Account (AccountID CT0000000300 in the CAIRNATS) such that the total is equal to the sum of(Actual DERCs/ Allowances Required determined pursuant to Paragraph B. 8 for the preceding calendaryear)

- 0.9*(Actual DERCs Generated detennined pursuantto Paragraph B.9 in the preceding calendaryear) for all emissions units. 14. Not more than ninety (90) days after the completion ofthe Non-Ozone Season, the Respondents shall deduct a quantity ofDERCs from the currentbalance ofDERCs possessed by the Respondents and/or transfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Account to the CT State NOx Retirement Account (AccountID CT0000000300 in the CAIRNATS) such that the total is equal to 0 or the total of(Actual Non-Ozone Season DERCs/ Allowances Required for the most recently completed Non-Ozone Season)

- 0.9*(Actual Non-Ozone Season DERCs Generated in the mostrecently completed Non-Ozone Season) for all emissions units described in Table I, whichever is greater. Notwithstanding the control period limitations ofParagraph B.3 ofthis Trading Agreement and Order, Allowances used to comply with this Paragraph for aNon-Ozone Season must have been originally allocated for the control periods that correspond to the same calendar years within thatNon-Ozone Season. 15. Doubling: Ifthe Actual DERCs/Allowances Required for any month, detennined in accordance with Paragraph B.8, exceeds the quantity ofDERCs and/or Allowances in the Respondents' possession on the first day ofthat month, then in addition to the deduction or transfer specified in Paragraphs B.I3, the Respondents shall also deduct a quantity ofDERCs from the currentbalance ofDERCs possessed bythe Respondents and/or transfer a quantity of Allowances from the Respondents' NOx General and/or Compliance Account to the CT State NOx Retirement Account (Account ID CT0000000300 in the CAIRNATS) such that the total is equal to 0 orthe total of(Actual DERCs/ Allowances Required for that month)

- 0.9*(Actual DERCs Generated in that month) for all emission units, whichever is greater. Such additional DERC deduction orAllowance transfer shall be perfonned atthe same time as any DERC deduction orAllowance transfer specified in Paragraph B.l3 ofthis Trading Agreement and Order. Ifthe Actual Non-Ozone Season DERCs/Allowances Required for any Non-Ozone Season, detennined in accordance with Paragraph B.I0, exceeds the quantity ofDERCs and/or Allowances in the Respondents' possession on the first day ofthe Non-Ozone Season, then in addition to the deduction ortransfer specified in Paragraphs B.14, the Respondents shall also deduct a quantity ofDERCs from the current balance ofDERCs possessed by the Respondents and/or transfer a quantity ofAllowances from the Respondents' NOx General and/or Compliance Account to the CT State NOx Retirement Account (Account ID

### NRG Energy, Inc., et al. 

### 9 Trading Agreement and OrderNo. 8306 CT0000000300 in the CAIRNATS) suchthatthe total is equal to 0 orthe total of(Actual Non-Ozone Season DERCs/ Allowances Reguired forthe most recently completed Non-Ozone Season)

- 0.9*(Actual Non- Ozone Season DERCs Generated in the mostrecently completed Non-Ozone Season) forTable I emissions units, whichever is greater. Such additional DERC deduction orAllowance transfer shall be performed atthe same time as any DERC deduction orAllowance transfer specified in Paragraph 

### RI4 ofthis Trading Agreement and Order. Notwithstanding the provisions ofParagraph B.l5 ofthis Trading Agreement and Order, any violation ofParagraphs 8.8 and RIO 

### ofthis Trading Agreement and Ordermay be subjectto additional enforcementaction as may be deemed appropriate by the Commissioner in accordance with the Department's enforcementresponse policy. 16. Atthe end ofeach calendaryear, the Respondent shall demonstrate that any Allowances used for compliance with this Trading Agreement and Order during the year satisfy the requirements ofParagraph B.3 and are surplus, quantifiable, enforceable and permanent. This shall be determined forthe emissions units in each Non-AttainmentAreaby demonstrating thatthe actual, aggregate NOx emissions during the most recentcontrol period, as reported to the United States Environmental Protection Agency, from the emission unites) to which the Allowances were originally allocated were equal to or less than the aggregate amount of Allowances allocatedto such unites) by the State ofConnecticutminus the aggregate amount ofAllowances transferred orused for compliance with this and any otherTrading Agreement and Order. The Respondents shall also demonstrate that any DERCs generated and/or used in accordance with this Trading Agreement and Order are: Real because they will result in a reduction ofilctual emissions released into the air, net of any consequential increase in actual emissions resulting from shifting demand. The emission reductions will be properly measured, recorded and reported. Surplus because they are notrequired by any Connecticut statute orregulation mandated by a current State ImplementationPlan ("SIP"), and are not currently relied upon in any applicable attainmentplan, any reasonable further progress plan or milestone demonstration. Permanent because NOx controls are in place and operating, and an appropriate tracking system is in place to monitor all data required to verify and quantifythe creation ofDERCs. Enforceable because the DERCs were generated in accordance with the provisions ofthis or apriorTrading Agreement and Order issued by the Commissioner 17. Maintenance and Tune-up. Not more than 2 years from the date ofissuance ofthis Trading Agreement and Order, the Respondents shall perform maintenance and inspection ofeach emission unit listed in Table I. Such maintenance and inspection shall include, butnotbe limitedto, the following:

a. Inspectthe combustion system, and clean or replace any components ofthe combustion system as necessary, in accordance with manufacturer's specification or current good engineering practice;NRG Energy, Inc., et al. 10 Trading Agreement and OrderNo. 8306

b. Inspectthe system controlling the air-to-fuel ratio, and ensure that it is calibrated and functioning in accordance with the manufacturer's specifications or current good engineering practice;

c. Measure the operating parameters ofthe emission unit used to determine that the emission unit is operating in accordance with manufacturer's specification or current good engineering practice priorto and after any adjustments are made during maintenance, tune-up, or inspection activity; and d. Make and keep records including, but not limited to, the following:

I. Demonstration that any maintenance, tune-up, and/or inspection activity performed on the emission units described in Table I in accordance with Paragraph B.I 7 ofthis Trading Agreement and Order has been performed in accordance with the manufacturer's specifications or current good engineeringpractice, ii. The date and a description ofany maintenance, tune-up, and/or inspection activity performed on the emission units described in Table I in accordance with Paragraph B.I7 ofthis Trading Agreement and Order, iii. The name, title and affiliation ofthe person conducting any maintenance, tune-up, and/or inspection activity performed on the emission units described in Table I in accordance with Paragraph B.17 ofthis Trading Agreement and Order, iv. The operating parameters ofthe emission unit used to determine that the emission unit is operating in accordance with manufacturer's specification or current good engineering practice priorto and after any adjustments are made during maintenance, tune-up, or inspection activity performed in accordance with Paragraph B.I 7 ofthis Trading Agreement and Order. 18. Record Keeping:

a. By the close ofeach calendar day, the Respondents shall record the actual 24-hour average NOx emission rate for any emission unit equipped with an approved CEMS, the actual fuel type and the actual quantity ofeach type of fuel in units ofvolume per day or MMbtu per day for each fuel used on the preceding day in an emission unit described in this Trading Agreement and Order, b. On orbefore the first day ofeach calendarmonth, the Respondents shall record the number ofDERCs and corresponding serial numbers and vintages for all DERCs in its possession on the first calendarday ofthat calendar month,NRG Energy, Inc., et al. II Trading Agreement and OrderNo. 8306

c. On orbefore the first day ofeach calendarmonth, the Respondents shall record the number ofAllowances and corresponding identification numbers and allocation control periods for all Allowances in its possession on the first calendar day ofthat calendarmonth, d. On orbefore the first day ofeach calendar month, the Respondents shall record the number ofDERCs and corresponding serial numbers, vintages, purchase/sales dates, and seller/buyer for all DERCs purchased or sold during the preceding calendarmonth,

e. On or before the first day ofeach calendarmonth, the Respondents shall record the number ofAllowances and corresponding identification numbers, purchase/sales dates, allocation years, and seller/buyer for all Allowances purchased or sold during the preceding calendar month (Transaction reports generated from the CAlRNATs shall suffice for the purposes ofthis subparagraph), 

### f. On orbefore the first day ofeach calendar month, the Respondents shall record the Estimated DERCs/ Allowances Required for that calendar month determined in accordance with Paragraph B.8 ofthis Trading Agreement and Order, g. On orbefore the twentieth calendar day ofeach calendarmonth, the Respondents shall record the Actual DERCs/ Allowances Required for the preceding calendar month determined in accordance with Paragraph B.8 of this Trading Agreement and Order, h. On orbefore the twentieth calendarday ofeach calendar month, the Respondents shall record the Actual DERCs Generated for the preceding calendar month determined in accordance with Paragraph B.9 ofthis Trading Agreement and Order and DERCs retired for environmental benefit in accordance with Paragraph B.12 ofthis Trading Agreement and Order, 

### i. On or before January 31 ofeach calendaryear, the Respondents shall record the quantity ofDERCs deducted in accordance with Paragraphs B.13 and B.IS ofthis Trading Agreement and Orderfor the preceding month. Such records shall include the serial number and vintage ofeach DERC deducted from the Respondents' currentbalancepursuantto Paragraphs B.13 and B.IS ofthis Trading Agreement and Order, 

### j. On orbefore January 31 ofeach calendaryear, the Respondents shall record the quantity ofAllowances transferred in accordance with Paragraphs B.13 and B.IS ofthis Trading Agreementand Order. Suchrecords shall include the identification number and allocation control period ofeach Allowance transferred pursuantto Paragraphs B.13 and B.IS ofthis Trading Agreement and Order, k. Not more than thirty (30) days after the completion ofeach Non-Ozone Season, the Respondents shall record the Non-Ozone Season Average NOx emission rate for all emissions units described in Table I, the quantity of DERCs and/or allowances possessed on the first day ofthe Non-Ozone Season, the quantity ofDERCs deducted and/or Allowances transferred in

### NRG Energy, Inc., et al. 12 Trading Agreement and OrderNo. 8306 accordance with Paragraph B.14 ofthis Trading Agreement and Order, the quantity ofDERCs generated during the Non-Ozone Season in accordance with Paragraph B.II ofthis Trading Agreement and Order, and the quantity ofNon-Ozone Season DERCs generated during the Non-Ozone Season and retired.for environmental benefit in accordance with Paragraph B.l2 ofthis Trading Agreement and Order, l. For each month ofthe Ozone season, the Respondents shall maintain records attesting to the fact that any DERCs deducted from its balance in accordance with Paragraphs B.13 and B.IS ofthis Trading Agreement and Order satisfy the requirements ofParagraph B.3. Generator certification of this fact shall be sufficient, and

m. On each day during the ozone season thatthe Respondents operate in accordance with Paragraph R 7 ofthis Trading Agreement and Order, the Respondents shall make and keep Records ofall emission unit operation in accordance with Paragraph B.7 ofthis Trading Agreement and Order, including copies ofany written correspondence from the Respondents' fuel supplier detailing the duration and circumstances ofthe inadequate fuel oil supply or interruption ofgaseous fuel supply to the emission units. 19. Respondents.shall retain records and supporting documentation required by this Trading Agreement and Order for a minimum offive years, commencing on the date such records were created. Respondents shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofa written requestfrom the Commissioner. All records shall be maintained in accordance with Sections 22a-174-4 and 22a-174-22 ofthe Regulations. 20. Reporting: No laterthan March 1 ofevery year after issuance ofthis Trading Agreement and Order, the Respondents shall submitto the Commissionera written report containing copies of all ofthe records required pursuantto Paragraphs B.l8.a.

- RI8.j, R18.! and B.l8.m ofthis Trading Agreement and Order. Not laterthan July 30 ofeach calendaryear, the Respondents shall submit awritten report containing copies ofall records required pursuantto Paragraph B.l8.k ofthis Trading Agreement and Order. The Commissionermay prescribe the forms to be used for the submission ofthese reports. The Respondents shall submitthese reports on such forms, ifprescribed by the Commissioner. 21. Full compliance. Respondents shall notbe considered in full compliance with this Trading Agreement and Order until all actions required by this Trading Agreement and Orderhave been completed as approved and to the Commissioner's satisfaction. 22. Approvals. Respondents shall use best efforts to submitto the Commissioner all documents required bythis Trading Agreement and Order in a complete and approvable form. Ifthe Commissioner notifies Respondents that any document or other action is deficient, and does not approve itwith conditions ormodifications, it is deemed disapproved, and Respondents shall correct the deficiencies andresubmit itwithin the time specified by the Commissioner or, ifno time is specified by the Commissioner, within 30 days ofthe Commissioner's notice of deficiencies. In approving any document orother action underthis Trading Agreement and Order, the Commissioner may approve the document orother action as submitted orperformed orwith such conditions or modifications as the Commissionerdeems necessary to carry outthe purposes ofthis Trading Agreement and Order. Nothing in this paragraph shall excuse noncompliance or delay.NRG Energy, Inc., et al. 13 Trading Agreement and OrderNo. 8306

23. Definitions. As used in this Trading Agreement and Order "Commissioner" means the Commissioner or a representative ofthe Commissioner; The date of"issuance" ofthis Trading Agreement and Order is the date the Trading Agreement and Order is deposited in the U.S. mail orpersonally delivered, whichever is earlier. 24. Dates. The date ofsubmission to the Commissionerofany documentrequired 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 Trading Agreement and Order, including butnot limited to notice ofapproval ordisapproval ofany document orother 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 calendar day. Any document or action which is required by this Trading Agreement and Orderto be submitted orperformed by a date which falls on a Saturday, Sunday or a Connecticut or federal holiday shall be submitted orperformed bythe next day which is not a Saturday, Sunday orConnecticut orfederal holiday. 25. Certification ofdocuments. Any document, including butnot limited to any notice, which is required to be submitted to the Commissioner underthis Trading Agreement and Order shall be signed by an individual, employed by the Respondents, who satisfies the criteria setforth in Section 22a-174-2a(a)(I) ofthe Regulations ofConnecticut State Agencies and by the individual(s) responsible for actuallypreparing such document. Each individual who signs documents in accordance with this Paragraph 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, including my inquiry ofthose individuals responsible for obtaining the information, that the submitted information is true, accurate and complete to the bestofmy knowledge and belief. I understand that any false statementmade in the submitted information may be punishable as a criminal offense under Section 53a-157b ofthe ConnecticutGeneral Statutes and any other applicable law."

26. Noncompliance. This Trading Agreement and Order is a final order ofthe Commissionerwith respectto the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Order may subject Respondents to an injunction and penalties. 27. False statements. Any false statement in any information submittedpursuantto this Trading Agreement and Order may be punishable as a criminal offense under Section 53a-157b ofthe Connecticut General Statutes and any other applicable law. 28. Notice oftransfer; liability ofRespondents. Until Respondents have fully complied with this Trading Agreement and Order, Respondents shall notify the Commissioner in writing no later than 15 days aftertransferring all or any portion ofthe facility, the operations, the site orthe business which is the subjectofthis Trading Agreement and Order or after obtaining a new mailing or location address. Respondents' obligations underthis Trading Agreement and Order shall notbe affected by the passage oftitle to anyproperty to any otherperson ormunicipality.NRG Energy, Inc., et aJ. 14 Trading Agreement and OrderNo. 8306 29. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any other action to prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties forpast, present, or future violations oflaw. Ifat any time the Commissionerdetermines that the actions taken by Respondents pursuantto this Trading Agreement and Order have 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 Respondents to undertake further investigation orfurther action to prevent orabate violations orpollution. 30. Respondents' obligations under law. Nothing in this Trading Agreement and Order shall relieve Respondents ofother obligations under applicable federal, state and local law. 31. No assurance by Commissioner. No provision ofthis Trading Agreement and Order and no action or inaction by the Commissioner shall be construed to constitute an assurance by the Commissionerthat the actions taken by Respondents pursuantto this Trading Agreement and Order will result in compliance orprevent or abate pollution. 32. Access to premises. Any representative ofthe Department ofEnvironmental Protection may enterthe withoutpriornotice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order. 33. No effect on rights ofotherpersons. This Trading Agreement and Order neither creates nor affects any rights ofpersons ormunicipalities that are notparties to this Trading Agreement and Order. 34. No Creation ofProperty Rights. This Consent Orderdoes not create any property rights with respectto these DERCs orAllowances. 35. Notice to Commissionerofchanges. Within 15 days ofthe date Respondents become aware of a change in any information submitted to the Commissionerunder this Trading Agreement and Order, orthat any such information was inaccurate ormisleading orthat any relevant information was omitted, Respondents shall submitthe correct or omitted information to the Commissioner. 36. Notification ofnoncompliance. In the eventthat Respondents become aware that they did not ormay not comply, or did not or may not comply on time, with any requirement ofthis Trading Agreement and Order or ofany document required hereunder, Respondents shall immediately notify bytelephone the section identified in the nextparagraph and shall take all reasonable steps to ensure that any noncompliance or delay is avoided or, ifunavoidable, is minimized to the greatest extentpossible. Within five (5) days ofthe initial notice, Respondents 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 written approval ofthe Commissioner, dates by which compliance will be achieved, and Respondents shall comply with any dates which may be approved in writing by the Commissioner. Notification by Respondents 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.

### NRG Energy, Inc., et al. 15 

### Trading Agreement and OrderNo. 8306

37. Submission ofdocuments. Any documentrequired to be submittedto the Commissioner under this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Orderor in writing by the Commissioner, be directed to: Supervisor Administrative Enforcement Group Engineering and Enforcement Division Bureau ofAir Management Department ofEnvironmental Protection 79 Elm Street, 5th 

### Floor Hartford, Connecticut 06106 (860) 424-3702 Respondents consentto the issuance ofthis Trading Agreement and Orderwithout further notice. The undersigned certifies thathe/she is fully authorized to enter into this Trading Agreement and Order and to legally bind Respondents to the terms and conditions ofthe Trading Agreement and Order.

Issued as a final consentorder ofthe Commissioner ofthe Department ofEnvironmental Protection.

# ~!b,=~o..... Arney Marrella () Commissioner

TOWN

### OF~===== MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED Certified Document 

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