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# STATE OFCONNECTICUT DEPARTMENT OF ENVIRONMENTALPROTECTION

In the matter of

The State of Connecticut and


# , PSEG PowerConnecticut LLC ) ) ) ) ) 

### TradingAgreement and Order No. 8242



### Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and PSEG Power Connecticut LLC ("PSEGU ) agree that it is in the public interest that they work cooperatively 

### to improve the air qualitywithin the State of Connecticut and that the use of emission reduction trading will achieve this result in a timely andcost-effective manner:
A. At the request and with the agreement of PSEG, the 

### Commissionerfinds the following:

1. 

### PSEG 

### is anexempt wholesale electric generating company with 

### its principal place of business in Newark, New Jersey. On December 6, 2002 PSEG purchased from Wisvest-Connecticut, LLC and now owns a fossil fuel-fired electric generating station at 1 Atlantic Street in Bridgeport, Connecticut ("facility")

. 2. At the facility, PSEG operates Bridgeport Harbor StationUnit 2, Connecticut Registration NO.00150162,
an oil-fired cyclone boiler, currently rated at 170 megawatts ("boiler"). The boiler operates on No. 6 or No.2 fuel oil. No.2 fuel oil is used primarily as a start-up fuel. Acontinuous emissions monitor ("CEM"), certified to 40 Code of Federal Regulations Part 75, measures nitrogen oxide ("NOx") emissions from the boiler.

3. During the year 1997, based on CEM monitoring data, the annual NOx emissions for Bridgeport Harbor StationUnit 2 were 1,095 tons. The unit operated for 5,320 hours and combusted 34,885,616 gallons of No.6 oil and 61,781 gallons of No.2 oil.

4. During the year 1998, based on CEM monitoring data,

(PriIH:d Oil**R~c~c'ed** Paper) 79 Eb SlIee: • Hanford, CT 06106·'127 h:tp:lldep.$tILc.C::,Il$ All £q:,,:1 OppOfflllliry £",ployu"

### .. PSEG Power Connecticut LLC 2 Trading Agreement and OrderNo. 8242

the annual l.JOx emissions for Bridgeport Harbor Station Unit 2 were 920 tons. The unit operated for 4,493 tours and combusted 31,110,827 gallons of No.6 oil and 71,527 gallons ofNo.2 oil. 

# , , s. The NOx RACT emission limit for Unit 2 is 0.43 lb/MMBtu,**w~ich** applies to firing onNo. 6 oil or No.2.oil, either individually or in combination.

6. On Decembe=.6, 2002 PSEG purchased fromWisvestConnecticut, LLC and now owns 200 tons ofNOx CERCs,**SN#C~4NOxOO-015-0045-7668-200.** These 200 tons of·NOx CERCs were approved under Trading Agreement and Order 8187.



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.. .. 7. Pursuant to Section 22a-174-22(j) of the Regulations: PSEG intends to limit' the NOx emissions f=om Unit 2 to 192 tons annually to maintain the NOx CERCs approved under Trading Agreement andOrder 8187 issued to WisvestConnecticut, LLC.

B. With the agreement of PSEG, the Commissioner, acting under Sections 22a-6, 22a-:71, 22a-174, 22a-176, and 22a-177 of the Connecticut General Statutes, orders PSEG as follows:

1. PSEG shall limit annual NOx emissions from the boiler to
no more than 192 tons during any calendaryear.
2. PSEG shall maintain records fDr the boiler showing daily NOx mass emissions, actual fuel consumed on a daily basis, and**ru~~ing** totals of each of the foregoing for the current calendaryear. 3. No later than March 1 of everyyear after**~ssuance** of this Trading Agreement and Order, PSEG shall**~nclude** with the**k~nual** Emission Statement orovided to the Commissioner, a record of each sale·or other transfer, and use of any and all of the 200 tons of CERes referenced ip oaragraphA.6. of this rrading Agreement and Orderuntil all such CERCs have been used. PSEG shall also include actual NOx emissions from the boiler. These reports shall be on a formprescribed by the Commissioner.

4. PSEG shall retain records and supporting documentation as described in this Trading Agreement and Order for a



# . .PSEG Power**Cop~ecticut** LLC 3 Trading Agreement and OrderNo. 8242



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# '- minimumof five years,**commencin~** on the**dat~** such records were created. PSEG shal_**o~ovide** the records specified above to the Commissioner-within thirty (30) days ofreceipt of a written request from the Commissioner'l 5. AnyNOx allowances allocated to the boiler and received by PSEGpursuant to Sections 22a-i74-22a or 22a-174-22b of the Regulations shall not be eligible for conversion to offset credits. In addition, the 200 tons peryear of NOx CERCs referenced in paragraphA.G. of this Trading Agreement and Order shall be used as offset, credits only by stationary sources subject to Sections 22a-174-22a or 22a-174-22b of the Regulations or by stationary**so~rces** subject to a NOxbudget programestablished by another state in accordance with the Ozone Transport Commission Memorandum ofUnderstanding dated September 27, 1994 or 40 Code of Federal Regulations Part 96.

6. Aoorovals. PSEG shall use best efforts to submit to the Commissioner all documents required by this Trading Agreement and Order in a complete and approvable form. If the**Com~issioner** notifies PSEG that any**docume~t** or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and PSEG shall correct the deficiencies and resubmit it within the time specifiedby the Commissioner or, 

### ifno time is specifiedby the Commissioner, within 30 days of the Commissioner's notice ofdeficiencies. In approving any document orother action under this TradingAgreement and Order, the Commissionermay approve the document or other action as submitted orperformed or with such conditions ormodifications as the Commissioner deems necessary to carryout the purposes of this Trading Agreement and Order. Nothing in this paragraph shall
excuse noncompliance or delay.

7. Definitions. As used in this Trading Agreement and Order, "Commissioner" means the Commissioner of Environmental Protection or an agent of the Commissioner.

"Ozone season" means the period fromMay 1 through September 30 in any given calendar year. The date of "issuance" of this Trading P.greement and Order is the date the TradingAgreement and Order is deposited in the U.S. mail orpersonally delivered, whichever is earlier

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### •PSEG Power Connecticut LLC 4 Trading Agreement and OrderNo. 8242

8. Dates. The dal:e of submission to the Commissioner of any document requir:ed by this TradingAgreement and Order shall be the,date such document is received by the CommissioneI:.

·..The date ofany notice by the Commissioner under this Trading Agreement and Order, including but not limited to notice of approval or disapproval of any document or otheraction, 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 requiredby this**Tr~ding** Agreement and**Qrd~r** to be submitted orperformed by a date which falls on a Saturday, Sunday or a Connecticut
or federal holiday shall be submitted orperformed by the next day which is not a Saturday, Sunday or Connecticut or federal holiday.

9. Certification of documents. Any document, including but not limited to any notice, which is reqUired to be submitted to the Commissionerunder this Trading Agreement andOrder shall be signed by PSEG or, ifPSEG is not an individual, by PSEG's chief executive officer
or a duly authorized representative of such officer, as those terms are defined in Section 22a-430-3(b)(2) of the Regulations, and by the individual(s) responsible for actually preparing such document, and PSEG or PSEG's chief executive 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 I certify, based on reasonable investigation, including my inquiry of those individuals responsible for obtaining the information, that the submitted information is true, accurate and complete to the best of my knowledge and belief. I understand that any false statement made in the submitted information is punishable as a criminal offense under Section 53a-157b of the Connecticut General Statutes and an.y other applicable law."

10. Noncomoliance

.. This Trading Agreement and Order is a final order of.the Commissioner with respect to the matters addressed herein, and is nonappealable and

### PSEG PowerConnecticut LLC 5 

### Trading Agreement andOrderNo. 8242

immediately enforceable. Failure-to comply with this TradingAgreement andOrdermay subject PSEG to an injunctionandpenalties.

I 11. 

### False statements. Any false**stat~ment** 

### in any information submittedpursuant to this TradingAgreement and Order is punishable as a criminal 

### offense under Section 53a-157b 

### of the ConnecticutGeneral Statut'es and any other applicable law.

12. Notice of transfer; liabilityof PSEG andothers. Until PSEG has fully compliedwith this TradingAgreement and Order, PSEG shall notifythe Commissioner inwriting no laterthan fifteen (15) 

### days after transferring all or anyportionof the facility, the operations, the site or thebusiness which 

### is the subject of this Trading Agreement andOrderorafterobtaining a newmailing or locationaddress. PSEG's obligations under this Trading Agreement andOrder shall not be affectedby the passage oftitle to anyproperty to any otherperson or municipality.

13. 

### Commissionerls powers. Nothing in this TradingAgreement and 

### Order shall affect the Commissioner's authority to institute anyproceeding ortake any other action to prevent or abate.violations oflaw, prevent or abate pollution, recover costs andnatural resource damages, and to impose penalties forpast, present, or future violations 

### of law. 

### Ifat any time the Commissioner determines that the actions taken by PSEGpursuant to this TradingAgreement andOrderhave successfully correctedall violations, fully characterizedthe extent ordegree ofanypollution, or successfullyabatedor preventedpollution, the Commissionermay institute any proceeding to require PSEG to undertake further investigation or further action toprevent or abate violations orpollution.

14. 

### PSEG's obligations under law. Nothing in this Trading Agreement and Order shall relieve PS£G ofother obligations under applicable federal, state and local law.

15. No assurance by Commissioner. No provision of thisPSEG Power Connecticut LLC 6 Trading Agreement and OrderNo. 8242

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 PSEGpursuant to this Trading Agreement and Order will result in**c~~liance** orprevent or abate pollution.

16. Access to facility. Any representative of the Department of Environmental Protection may enter the facility without prior notice for the purposes of monitoring and enforcing the actions required or allowed by this Trading Agreement and Order.

17. No effect on rights of otherpersons_ This Trading. Agreement and Order neither creates nor affects any rights ofpersons or municipalities that are not parties to this TradingAgreement and Order.

18. No Creatlon of PropertyRights. This Trading Agreement and Order does not create any property rights with respect to these DERCs.

19. Notice to Commissioner of changes. Within fifteen (15) days of the date PSEG becomes aware ofa change in any information submitted to the Cowmissionerunder this Trading Agreement andOrder, or that any such information
was inaccurate ormisleading or that any relevant informationwas omitted, PSEG shall submit the correct or omitted information to the Commissioner.

20. Notification ofnoncomnliance. In the event that P5EG becomes aware that it did not ormay not comply, or did not ormay not comply on time, with any requirement of this Trading Agreement and Order or of any document required hereunder, PSEG 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. Within five (5) days of the initial notice, PSEG shall submit in writing the date, time, and duration of the noncompliance and the reasons for the noncompliance or delay and propose, for the review and written approval of the Commissioner, dates by which compliance will be achieved, and PSEG shall comply with any dates which may bePSEG Power Connecticuc LLC 7 Trading Agreement and OrderNo. 8242

! "-" approved in writing by the Commissioner. Notification by PSEG shall not excuse noncompliance or delay, and the Comrnissioner1s approval ofany compliance dates proposed shall not excpse noncompliance or delay unless specifically. so statedby the Commissioner in writing.

21. Submission ofdocuments. Any document required**~o** be submitted to the Commissioner under this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order

# or in writing by the Commissioner, be directed to:

Ms. Wendy Jacobs Department of Environmental Protection Bureau ofAirManagement Compliance and Field'Operations Division Emissions and Credit Trading Section 79 Elm Street Hartford,**Cop_~ecticut** 06106P5EG Power Connecticut LLC 8 Trading Agreement and Order No. 8242

PSEG consents to the issuance of this TradingAgreement and Order without further notice. The undersigned certifies that he/she is fully authorized to enter into this TradingAgreement and Order and to legallybind PSEG to the terms and conditions of the Trading**Ag~eement** and Order.

Signature:

Name:

### ~power

W. r"toore Connecticut LLC

Title; V_ce President

- =ossil**O~erations**

Environmental Protection on Issued as 

### a final consent order**~anuar~** 24, 2003

nrtnur Commi'e,J,ta

RECEIPT REQUESTED 

### RECORDS

RETURN Date;



### CITYOFBRIDGEPORT**LP~VD** MAILED CERTIFIED MAIL, Certified Document No.



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