# -~**~~~** 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

State ofConnecticut and Sikorsky Aircraft 

### Corporation 

# , ) ) 

### ) ) Trading Agreement and Order No. 

### 8120 A



### WHEREAS, the 

### Commissioner ofEnvironmental Protection ("Commissioner") and the Sikorsky Aircraft Corporation ("Sikorsk-y") agree that 

### it is in the public interest that they work cooperatively 

### to improve the air quality within the State ofConnecticut and that the use ofdiscrete emission reduction credit ("DERen) trading to reduce nitrogen oxide (''NOx'') emissions will achieve this 

### result 

### in atimely and cost-effective manner: A. 

### At the request 

### and with 

### the agreement ofSikorsky, the Commissioner finds the following:

2. Sikorsky is a corporation which owns and operates a facility involved 

### in aircraft manufacturing at 

### 6900 Main Street in Strarford, Connecticut ("faciliry"). 

### '4\ 

## ...J 1. This Trading Agreement and Order supercedes Trailing Agreement and Order 8120 issued on AprilS, 

### 2002.

'.,./ 3. At the faciliry, Sikorsky operates fuel-burning equipment that consists offive (5) dual-fuel fired steamboilers (''boilers 

### 1,2,3,4, and 

### 5'') capable ofburning natural gas orNo.6 fuel oil, which are subject to Section 22a-174-22 ofthe Regulations of Cormecticut State Agencies ("Regulations") pertaining to the control ofNOx emISSions.
4. Official U.S. Environmental Protection Agency ("EPA") Reference Method 7E stack testing perfonned on October 3 through 10, 2000 resulted in NOx emission rates as follows:

Table 1 Sikorsky

- ·Ox Emission Rates, FLERs and Allowable Limits (lbsIMMBtu) U1'<U Fuel But St:lckTest FLER AJlowable D:lfe of D2!e oCNext Reg. or Input Rate Limit Last St.ackTest Permit No. (MMB,u) (tO/OO) Ra!e StackTest Boiler No. I No.6 oil 48.0 

# I 0.30 0.39 0.25 

# I 10110/00 10110/05 R178-0019 Natural Gas 50.4 0.18 N/A 0.20 10/10/00 10/1 0/05

(PriDted OD Rec)'cled Paper) 79 Elm Street • Hanford. CT 06106·5127 tinp .lId'p.SI.1 C. 'I. liS

.... 11 Equ.ol OpportlJ.lli:y Err.plo.vtr 

# ORIGINALT ad·n. Agre-ment And 

### 0 d N 8PO A ? Sikorskv A.ircraft Corooration



# - r I 

### ,

# - . r er o.


# - Table 1 Sikorsky

- NOx Emission Rates, FLERs and Allowable Limits (lbsIMMBtu) BoilerNo.2 NO.6 oil 48.0 0.30 0.34 0.25 

# I 10110/00 

# I 10/10/05 RI78-00t8 Natural Gas 50.4 0.20 N/A 0.20 tOllOIOO 10/10/05 BoilerNo.3 No.6 oil 48.0 0.30 0.35 0.25 10/10/00 10110105 Ri78-0017 Natural Gas 50.4 0.16 N/A 0.20 10/10/00 10/10/05 BoilerNo.4 No.6 oil 48.0 0.31 0.33 0.25 t011 0/00 10/10/05 R178·00t6 Natural Gas 50.4 0.19 N/A 0.20 lOll 0/00 10ltOl05 BoilerNo. 5 No.6 oil 49.5 0.34 0.35 0.25 10110/00 10110/05 Pi78-D039 Natural Gas
..... 52.5 0.12 N/A 0.20 10/10/00 10110/05
5. When burning No.6 fuel oil in boilers 1, 2, 3, 4 and 5, Sikorsky exceeds the NOx allowable emission rate limit specified in Section 22a-174-22(e) ofthe Regulations.
6. Pursuant to Section 22a-174-22(j) ofthe Regulations Sikorskyproposes to comply with Section 22a-174-22(e) ofthe Regulations, when burning No.6 fuel oil 

### in boilers 1,2,3,4 and 5, through the use ofapproved DERCs until April 30, 2007 at the facility in accordance with this Trading Agreement and Order.
7. Sikorskyproposes to use a full load emission rate ("FLER") identified 

### in Table 1 for the purposes ofcalculating DERCs required. 

# ""'" f.J 8. The Commissioner, 

### in accordance with the provisions ofTradingAgreement and OrderNo. 8120, pursuant to Section 22a-174-22 ofthe Regulations, approved the NOx DERCs referenced in Table 2 below ofthis Trading Agreement and Order, or they were purchased by Sikorsky. DERC creation serial numbers assigned bythe Department to these previously approved DERCs are identified 

### in Table 2 ofthis Trading Agreement and Order. DERCs are subject to the vintage restrictions ofthis Trading Agreement and Order. Dates after which the unused DERCs will no longer be eligible for use as a result ofthe vintage restricti0t:s are provided 

### in Table 2 ofthis Trading Agreement and Order 

### in the expiration date column.
Table 1 SIl<ORSKY Previously ADDroved DERCs y", Ozone Season NOx DERC serial Ozone Non-ozone season NOx DERC serial Non-ozone Expiralion

of numbers Season numbers season Dale Gen. DERCs DERes Pre-I999 SIN nol assiv:ned 2 SIN nOI assilr;ned 

## '4 I213IIQA

2000 

### I 12131105 2001 SIN nOI assi2Tted 

# ,. I SIN no! assi£Tted 

# 4. 12131106 2002 

### I 12131107



# . ,-

..f A. The Commissioner, in accordance with the provisions ofthis Trading Agreement and Order, pursuant to Section 22a-174-22(j) ofthe Regulations, hereby allows Sikorsky to comply with Section 22a-174-22 ofthe Regulations at the facility through use ofemissions DERC trading. 

# ORIGINAL

### Sikorskv Aircraft Corporation 

### 3 Trading Agreement And OrderNo. 8120 A

B. With the agreement ofSikorsky, the Commissioner, acting under Sections**22a~6,** 

### 22a-174, 22a-174, 22a-176, and 22a-177 ofthe Connecticut General Statues, hereby orders Sikorsky follows:

. 1. Upon issuance ofthis Trading Agreement and Order, at the facility Sikorsky shall comply with Section 22a-174-22 ofthe Regulations through emission reduction trading until Sikorsky achieves permanent compliance with the emission standards in Section 22a-174-?-2 (ej ofthe Regulation orbyApril 

### 30, 2007, whicheveris earlier as follows: '"

a. Sikorsky shall use approved DERCs 

### as required underthis Trading Agreement and Order; b. Sikorsky shall have in 

### its possession sufficient approved DERCs to meet applicable NOx emission limits as allowed under this Trading Agreement and Order; and

c. Sikorsky shall comply during the operation ofthe boilers with the full load emissions rate (FLERs) shown in Table 1 above oftrus Trading Agreement and Order

.



# . n),

. :::.., 

### .. 2. DERC Use. Until April 

### 30, 2007, before the first day ofeach month Sikorsky shall have in its possession sufficient approved DERCs for such month based on the following calculation:

a. Before the first day ofeach month, Sikorsky shall estimate DERCs required for such calendarmonth boilers when burning No.6 fuel oil and using the FLERfrom Table 1 as follows:. Estimated DERCs (tons) use {(Estimated fuel use in MMBtu) x ((FLER)

- (0.95 

### x NOx allowable emission limit))}.;.2000 lbs/ton.
Where:

• Allowable limit = 

### allowable limit rate in lbsl1v1MBtu shown in Table 1 ofthis Trading Agreement and Order.

• FLER = 

### full load emission rate in IbsfMMBtu as shown in Table 1 of this Trading Agreement and Order.

• Discount (0.95) = 

### 5% design margin applied to the allowable limit rate.

• Fuel heating value = 

### 150,000 BTU per gallon 

# ORIGINAL

### Sikorsky Aircraft Cornoration 4 

### Tradine. Agreement And Order No. 8120 A b. 0 

### laterthan the twentieth day ofeach month, calculate actual DERCs used in the preceding calendarmonth for boiler 1,2,3,4 and 5 when burning No.6 fuel oil using the FLER from Table I above and as follows:
Actual DERCs (tons) used {(Actual fuel use in MMBtu) x «HER)

- (0.95 x NOx allowable**limit)))~2000** 

### Ibs/ton.
3. Sikorsky shall make and keep records of: daily fuel use and fuel type; excess NOx emissions; the number ofDERCs in its possession, created, purchased and used (by serial number ifassigo,ed) each month in accordance with the appropriate emission rates and limits 

### in this Trading Agreement and Order; the number ofDERCs used during the ozone season and non-ozone season (the remainder ofthe year) as well as documentation attesting to the fact that approved DERCs used during the ozone season were generated during the ozone season. Generator certification ofttis fact shall be sufficient. Sikorsky shall maintain and submit such records to the Commissionerin accordance with Section 22a-174-22 ofthe Regulations.

5. Annual Emission Statement. No laterthan March I, ofevery year after issuance ofthis Trading Agreement and Order, Sikorsky shall include with the Annual Emission Statement provided to the Commissioner, arecord ofeach sale or othertransfer, and use ofany and all ofthe DERCs approved within and subsequent to issuance ofthis Trading Agreement and Orderuntil all such DERCs have been used. Sikorsky shall also includeNOx emissions from each boiler using or generating DERCs, and the amoUDt ofall DERCs used including serial number (ifassigned) and approved DERCs generated and/or purchased from otherfacilities, generated and/or approved for the previous calendaryear. These reports shall be on a form prescribed by the Commissioner and shall be in monthly increments. Should Sikorsky choose to discontinue the generation ofDERCs, Sikorsky will notify the Commissioner upon discontinuance.

### .~ 

## oJ o·4. 

### Record Keeping. Sikorsky shall retain records and supporting documentation as described in this Trading Agreement and Orderfor aminimum offive years, commencing on the date such records were created. Sikorsky shall provide the records specified above to the Commissionerwithin thirty (30) days ofreceipt ofawritten request from the Commissioner. All records shall be maintained in accordance with Sections 22a-174-4 and 22a-174-22 of the Regulations.

6. Allowance Use. Pursuant to Section 22a-174-22(d)(3) oftheRegulations, Sikors!,y may use NOx allowances, through April 30, 2007, pursuant to Section 22a o 

### I74-22G) ofthe Regulations to achieve all or aportion ofthe reductions required by Section 22a-174-22 of the Regulations. Any allowance used for compliance with Section 22a-174-22(e) ofthe Regulations shall be subject to all restrictions and/orrequirements applicable to DERCs contained in this Trading Agreement and Order;

a. In orderfor Sikorsky to use NOx allowances, Sikorsky shall create a general account in EPA's NOx Allowance Tracking System ("NATS''); and b. 

### Each allowance used for comoliance with Section 22a-174-22 ofthe Regulations shall be equivalent to one discrete emission reduction credit. Allowances shall be considered used for compliance with Section 22a-174-22 

# ORIGINALSikorsky Aircraft Corporation 

### 5 Tradin2 Agreement And Order No. 8110 A ofthe Regulations when they are transferred from the facility's NOx general account in the NAIS to the CT Stale NOx Retirement Account (Account ID 

### CTOOOOO00300 in the NATS). 7. DERC Doubling. At aminimum, DERCs required shall be adjusted upwards by 100% if DERCs are not in Sikorsky's possessionpriorto the first day ofeach month ofuse and staning on October I, 2003, priorto each non-Olone season. However, based on the gravity ofnoncompliance, the Commissionermay require additional upward adjustment. 

### 8. Vintage Restriction. For,thepurposes ofcompliance with Section 22a-174-22 ofthe 

### Regulations, DERCsiallowances shall onlyremain valid for five (5) calendaryears from the yearofthe generationlallocationofsuchDERCsiallowances. DERCsiallowances olderthan five (5) calendaryears from their creation/allocation are not valid for use for compliance 

### with Section 22a-174-22 ofthe Regulations. Notwithstanding the above, DERCsiallowances generated/allocated priorto calendar year 2000 are valid for use for compliance with Section 

### 22a-174-22 ofthe Regulations up to and inclnding De<:ember3J, 

### 2004. 9. FLER Exceedance. Noncompliance with an established FLER shall subje<:t Sikorskyto make restitution bymatching the quantity ofemissions ("true up'') caused by the exceedance 

### plus a 100% premium. The oue up in tons ofDERCs shall be equal to the FLER exceedance in IbslM:N!Btu, multiplied by the total heat input during the period of noncompliance divided by 2000 Ibs/ton. Ifthe period ofnoncompliance is not known, the time period from the completion ofthe last/previous Department witnessed emission test tlu"ough the date the FLER compliance is achieved as approved by the Commissioner shall be used. However, nothing 

### in this Trading Agreement and Order shall affect the Commissioner's authority to institute anyproceeding or take any other action to require additional upward adjusonent, based on the gravity ofany alleged noncompliance or violation oflaw. 

### 10. FLERModification. FLERs set forth inTable 2 of

### this Trading Agreement and Ordermay be modified 'only after the consent ofthe Commissionerby wrinen modification oftrus 

### Trading Agreement and Order. II. 

### Emissions Testing. Pursuant to Section 22a-174-22(k) ofthe Regulations, Sikorsky shall conduct NOx emission tests ofboilers 1,2,3,4 and 5 at least once every five years commencing from the dates ofthe applicable year 2000 emissions tests for boilers 1,2,3,4 

### and 5. 

### 12. Prol1Taro Review. AfterApril 30, 2007 for the boilers, Sikorsky shall comply with the requirements ofSection 22a-174-22 ofthe Regulations. However, after full program review ofthis and otherTrading Agreements and Orders and ifdetennined to be appropriate, the Commissionermay grant wrinen extension ofthis Trading Agreement and Order. After full program review, and ifthe Commissioner deems it appropriate, the Commissioner may allow the survival and use ofthese DERCs, subject to the vintage restriction, beyond April 

### 30,2007.



## , j 

### 13. Future Compliance Report. On or before September I, 2006, Sikorsky shall submit a report indicating how the facility will comply with Section 22a-174-22 ofthe Regulations after 

### April 30, 2007. 

# ORIGINALSikorsky Aircraft Corooration 

### 6 Trading: AQTeernent And Order No. 8]20 A

14. Full compliance. Sikorsky shall not be considered 

### in full compliance with this Trading Agreement and Orderuntil all actions required by this Trading Agreement and Orderhave been completed as approved and to the Commissioner's satisfaction. 

### 15. Approvals. Sikorsky shall use best efforts to submit to the Commissionerall documents required by this Trading Agreement and Orderin a complete and approvable fonn. lfthe Commissionernotifies Sikorskythat any docwnent or other action is deficient, and does not approve 

### it with conditions or modifications, 

### it is deemed disapproved, and Sikorsky shall correct the**deficiencie~** and resubmit 

### it within the time specified by the Commissioner or, if no time is specified bythe Commissioner, within 30 days ofthe Commissioner's notice of deficiencies. 

### In approving any document or other action under this Trading Agreement and Order, the Commissioner may approve the document or other action as submined or performed orwith such conditions ormodifications as the Commissioner deems necessary to carry out the purposes ofthis TradingAgreement and Order. Nothing in this paragraph shall excuse noncompliance or delay.**.~** 

### 'V .. 16. Definiti'ons. As used in this Trading Agreement and Order, "Approved DERCs" are those for which the Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioner or a representative ofthe Commissioner; "Ozone season" means theperiod from May 1 through September 30 in any given calendar year. The date of"issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Order is deposited in the U.S. mail or personally delivered, whichever is earlier.
17. Dates. The date ofsubmission to the Commissioner ofany document required by this Trading Agreement and Order shall be the date such document is received by the Commissioner. The date ofany notice by the Commissionerunder Trading Agreement and Order, including but not**limit~d** to notice ofapproval or disapproval ofany document or other 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 Order means calendar day. Any document or action which is required by this Trading Agreement and Order to be submined orperformed by a date which falls on a Saturday, Sundayor a Connecticut or federal holiday shall be submined orperformed bythe next day which is not a Saturday, Sundayor Connecticut or federal holiday. 

### 18. Certification ofdocuments

. .t\ny document, including but not limited to any notice, which is required to be submitted to the Commissionerunder this Trading Agreement and Order shall be signed by Sikorskyor, ifSikorskyis not an individual, by Sikorsky's chiefexecutive officer or a duly authorized representative ofsuch officer, as those terms are defined 

### in Section 22a-430·3(b)(2) ofthe Regulations ofConnecticut State Agencies, and by the individual(s) responsible for actuallypreparing such document, and Sikorsky or Sikorsk-y's chiefexecutive officer and each such individual shall cenify in writing as follows:
"I have personally examined and am familiar with the information submitted in this 

# ORIGINAL

### Sikorsky Aircraft Corporation 7 

### Trading Agreement And Order No, 8120 A document and all anaclunents thereto, and I certify, based on reasonable 

### investigation, including my inquiry ofthose individuals responsible for obtaining the infonnation, that the submitted information is true, accurate and complete to the best 

### ofmy knowledge and belief. Iunderstand that any false statement made in the submitted infonnation is punishable as a criminal offense under Section 53a-157b of 

### the Connecticut General Statutes and any other applicable law."


### 19. Noncompliance. lbis Trading Agreement and Order is afinal orderafme Commissioner with respect to the matters addressed herein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement and Ordermay subject 

### Sikorsky to an injunction andpenalties. 20. False statements. Any false statement in anyinfonnation submitted pursuant to Lllls Trading Agreement and Orderis punishable as a criminal offense under Section 53a-157b ofthe ConnecticutGeneral Statutes and anyother applicable law.
21.



### 22.

?' 

# -,.

24.

? -). 

### Notice oftransfer; liabilirv ofSikorsky. Until Sikorsky has fully complied with this Trading 

### Agreement and Order, Sikorskyshall notifythe Commissioner in writing no laterthan 15 days aftertransfening all or anyportion ofthe facility, the operations, the site orthe business which is the subject ofthis Trading Agreement and Orderor after obtaining a new mailing or location address. Sikorsky's obligations underthis Trading Agreement and Order shall not be affected by the passage oftitle to any property to any otherperson ormunicipality. Commissioner's powers. Nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute anyproceeding ortake any other action to preventor abate violations oflaw, prevent or abate pollution, recover costs and natural resource damages, and to impose penalties forpast, present, orfuture violations oflaw. If

### at any time the Commissionerdetermines that the actions taken by Sikorskypursuant to this Trading Agreement and Orderhave not successfullycorrected all violations, fully characterized the extent ordegree ofany pollution, or successfully abated orpreventedpollution, the Commissionermay institute anyproceeding to require Sikorsky to undertake further investigation orfurther action to prevent or abate violations orpollution. Sikorskv's obligations under law. Nothing in this Trading Agreement and Order shall relieve Sikorsky ofotherobligations under applicable federal, state and local law.
No assurance bv Commissioner. No provision ofthis Trading Agreement and Order and no action orinaction by the Commissioner shall be construed to constitute an assurance bythe Commissioner that the actions taken by Sikorskypursuant to this Trading Agreement and Orderwill result in 

### compliance orprevent or abate pollution. 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. 

# ORIGINALSikorskY Aircraft Corporation 8**Tradim~** A!ZTeement And Order No. 8120 A 

### 26. No effect on ril2:hts ofother persons. This Trading Agreement and Order neither creates nor affects any rights ofpersons or municipalities that are not parties to this Trading Agreement and Order.
27. No Creation ofPropertYRights. This Consent Order does not create any property rights with respect to these DERCs.
28. Notice to Commissioner ofchanges. Within 15 days ofthe date Sikorskybecomes aware of a change in any information submined to the Commissioner under this Trading Agreement and Order, or that anyfu'ch information was inaccurate or misleading or that any relevant information was omined, Sikorsky shall submit the correct or omined information to the Commissioner. 

### 29. Notification ofnoncompliance. 

### In the event that Sikorsky becomes aware that it did not or may not comply, ordid not ormay not comply on time, with anyrequirement ofthis Trading Agreement and Order or ofany document required hereunder, Sikorsky shall immediately notifyby 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 ofme initial notice, Sikorsky 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 Sikorsky shall comply with any dates which maybe approved in writing by the Commissioner. Notification by Sikorsky 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.

• i ',/ 

### 30. Submission ofdocuments. Any document required to be submitted to the Commissioner underthis Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement 

### and Order orin writing by the Commissioner, be directed 

### to: Mr. Roland 

### L. Severance Jr., P.E. Emissions and Credit Trading Section Compliance and Field Operations Division 

### 5th Floor Bureau ofAir Management Department ofEnvironmental Protection 79 Elm Street Hartford, Connecticut 06106



# ORIGINAL

### SikorskyAircraft Corporation 9 Trading Agreement And Order No. 8120 A**,~'l** 

## .J 

## -

. 

### Sikorsky consents to the issuance ofthis 

### TradingAgreement and Order without further notice. The

undersigned ceI1ifies that he/she 

### is fully authorized to enterinto this Trading Agreement and Order and to legally bind Sikorskyto the terms and conditions ofthe 

### Trading Agreement and Order. Sikorskyp,ir..craft Corporation

Type Name: "William D. Lut 

### Type Title: Director; Environment. Health and Safety
Date: 

### d'3

# Itt/a.!3 7 

# J

Issued 

### as a

## Pnal;onsent order ofthe 

### Commissioner ofthe 

### Depamnen:(ofEn.¥fr on

### ~~**~1** ,2003. / /. ,I { t" t;./

" [/- ,6"



### ------ArthurJ

# R~~ue, Jr COmmiSSiOn\)

• 

### , 

## ,



# .. TOWN OF STRATFORD 

### MAILED CERTIFIED MAIL, RETURNRECEIPT REQUESTED CeI1ified Document

G:\.TIV.DING-RI..S\.TIV.DINGORDERs\sikOtSky\8120Sil"Ord(02-13.o3).doc: 

# ORIGINAL