## ~y~ 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In thematter of ) ) 

### The State ofConnecticut ) ) and )



# , ) Northeast Generation**~ompany)** Trading Agreement and

### Oraer No. 8175

Whereas, the Commissioner

## c.t Environmental Protection ("Commissioner") and Northeast Generation Company ("NGC") agree that it is in the public 

### interest that they work cooDeratively to imDrove 

### the air Quality within the State of Connecticut ana that the use of emission reduction credit 

### ("ERe") trading to reduce nitrogen oxide ("NOx") emissions 

### \.-Jill achieve this result in a timely and cost-effective manner:

A. At the request and with the agreement of NGC, the Commissioner finds 

### the following: 1.**NG~ i~**  an exempt**~hole~ale e~ectric.generating.company** with its orlncloal place or buslness 1n Berl1n,**Co~~eCt1cut.** On or before·February 29, 2000 NGC will purchase from The**Co~~ecticut** Light and Power Comoany and then own one 

### (1) oiece of fuelburning equioment C"oeaking unit") identified-in Table 1 of**thi~ Tr~dlng-Ag~eement**  and Order. This peaking unit is a cornoustlon turolne. 2. On or before February 29, 2000 Northeast Generation Services Comoany will ooerate the Qeaking unit identified in Table 1 of this Trading**Agr~ement** ana Order at NGC's facility. 

### 3. Official 

### U.S. Environmental Protection Agency**(~EPA")** Reference Method 7E stack testing oerformed on the date indicated in Table 1, resulted in a NDx emission rate set forth in Table 1.

Table 1 NGC

## - NOx EMISSION RATE AND RACT LIMIT (lbs{MMStu) ?eaking FUEL FLER NOx RACT Stack Stack Test Date of

Unit (lbs{MM3tu) Rate Test Rate Stack Test (lbs{M!Gtu) Rate (lbs{MM:9tu) (ppmvd)
Tunnel 10 other 0.72 0.289 168.1 0.65 10{9{96 oil



### Date (Printed on RCGYaJod PIper) Elm Streel • Hlrlrord, CT 06106·5127 ht:p:lldep.Sllle.tt.us All**~qutll** Opportunity Employer 4.



## s. The emission rate for the peaking unit and fuel soecified in Table 1 1S in excess of Section 22a-174-22, Table 22-2, of the Regulations of Connecticut State Agencies**("Re9¥lations~),** NOx emission rate limits (ReasonablyAva1lable Control Technology**"R~CT~).** Pursuant to Section 22a-174-22(b) of the Regulations, the oeaking unit is subject to Sections 22a-174-22(d) through (k) of the Regulations, pertaining to the control ofNOx emissions.



### Initials

# ~~ 79

### Northeast Generation Company TradingAgreement and Order No. 8175
6. In accordance with Section 22a-174-22(j) of the Regulations, NGC proposes that for the peaking**~~it** 

### identified inTable I, NGC shall use ERC trading whenburning "other

### oilN

, 

### as that term is defined in Section 22a-174-22 of the Regulations. 7. Pursuant to the Deoartment ofEnvironmental Protection's "Credit Tradingfor

### Sources with IrregularNOxEmissions N 

### policy, with a revised date of November 5, 1997, attached hereto and incorcorated by reference into this T=ading Agreement and Order as**E~~iblt** 

### I, the peaking unit has peakdaily NOx emissions greater than three times the average daily emissions during the ozone season and is therefore considered a source with irregularNOx emissions. 8. BasedonDE? aooroved stack test data, it has been determined that the peaking unli's emissions will not meet the aoplicable**requ~rements** 

### ofRACT contained in Section 22a-174-22 of the Regulations. NGC proposes touse a Full Load Emission Rate**(·FLER~)** 

### identified in Table 1 for the purposes ofcalculating ERCs required. 9. OnDecember 6, 1999, pursuant to Section 22a-174-22<j) of the Regulations, NGC has acquired from the Clean**Air.Act~on** 

### Corporation ten (10) tons of aooroved non-ozone season ERCs**~n** 

### order to meet applicable RACT requirements and the requirements of this Trading Agreement**a-~d** 

### Order for the following months operation. NGC intends to continue acquiring approved ERCs as needed. 10. Aooroved ERCs are defined for the ourcose of chis TradingAgreement ana Order as those forwhich the Commissioner has orovided written authorization for use in comoliance with Section**2~a-174-22** 

### of the Regulations.

- 3. The Commissioner, in accordance with the provisions of this Trading Agreement and Order, and oursuant to**Sect~on** 

### 22a-174-22 (j) 

### of the Regulations hereby allows-NGC to comoly with Section 22a-174-22 of the Regulations throughuse ofERC trading referenced in Section Al 

### herein, to acnieve the nitrogen oxide emission reduction requiredby**Sect~on** 

### 22a-174- 22(d) (2) of the Regulations. C. With the agreement of NGC, the Commissioner, acting under**Cop~ecticut** 

### General Statutes Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177, orders NGC as follows:
1.

2.

3.

4. 

### Upon issuance of this Trading Agreement and Order NGC shall comoly during operation of the peaklng unit with the FLER shown inTable 1 above. On and after the date which NGC purchases the oeaking unit identified in Table I of this Trading Agreement and Order, NGC shall have in its oossession sufficient aooroved ERCs to meet aoolicable RACT requirements and the requirements of this Trading Agreement and Order. On and after the date which NGC ourchases the oeaking unit identified in Table 1 of this TradingAgreement and Order, NGC shall, on a daily basis, document ana record the amounts ofall fuel usedby the**oeak~n9** 

### unit eachday and the number ofERCs used for the ozone season (tromMay 1 through September 30 of eachyear) and non-ozone season (the remainder of the year)

. On and after the date whichNGCourchases the Deaking**~~it** 

### identified in Table I of this TradingAgreement and Order, pursuant to Section 22a-174-22(j) of the**Regulat~ons,** 

### NGC shall**acqu~re** 

### sufficient aooroved ozone and non-ozone season ERCs in oreer to meet applicable RAtT reauirements and the reauirements of this Trading Agreement and Order for the following month's operation.



### Initials -2-

### Northeast Generation Company Trading Agreement and Order No. 8175

b. 5.

6. 

### In accordance with Exhibit 1 of this Trading Agreement and Order, ozone season ERCs for use during the ozone season shall be purchased by NGC prior to the**begi~~ing** 

### or the ozone season. On and after the date whichNGC purchases the oeaking unit identified in Table 1 of this TradingAgreement and Order, NGC shall maintain and orovide the records**re~ired** 

### by paragraDh C.3. of this Trading Agreement and Order in accordance**w~tn** 

### the following and Section 22a-174-4 of the Regulations, and shall:

a. Have in its Dossession sufficient approved ERCs for the current day!**~a~ed** 

### on the following**calculat~ons** 

### (described also in**Exh~b~t** 

### 1) i 

### At all times (mass calculation): ERCs (in tons) 

## =[((FLER in lbs/MMBtu)

- (0.95 x NOx RACT in lbs/MMBtu)) x (actual fuel use inMMBtu)] + 

### 2000 pounds/ton During the ozone season only (peak day calculation): the maximum actual excess NOx emissions (in 

### lbs) on any of the days proiectedby the Commissioner to be "moderate to unnealthtul,H "uhhealthful,H or "very**u!L~ealthful** 

### " dividedby 3 and then dividedby 13 (with the result in tons): ERCs (in tons) = 

### [(Maximum excess NOx in lbsl + 

### 3J + 

### [13 Ibs/day/tonl; At a**min~mum,** 

### adjust**upw~rds** 

### by 100% the ERCs required ifERCs are not In NGC's**possess~on pr~or**  

### to use;

f. d. c.

h. e.

g. 

### As described inExhibit 1 of this Trading Aoreement and Order, to the extent that ERCs used to offset on**a~Deak** 

### day basis during the ozone season exceed the total mass excess emissions, remaining ERCs may be used in the non-ozone season in the same or subsequent years until May 1, 2003; Document and record daily fuel use, excess NOx emissions and, during the ozone season, the ozone classification as forecasted by the Commissioner on the previous day; No later than March 

### If 2000, 2001, 2002, 2003 and 2004, include with its annual**emiss~ons** 

### reDort to the Commissioner, ERCs used (calculated as described insection C.6.a. above), by ozone and non-ozone seasons, for the previous.calendar.year; Retain the records and supoorting documentation as described in this section for a**minimum~of** 

### five years, commencing on the date suchrecords are created;

. Maintain documentation to attest to the fact that ERCs used during the ozone season were generated during the ozone season. The ozone season is fromMay 1 through SeEtember 30 in any calendaryear. Generator certificatlon or this fact shall be sufficient; and Provide the- records specified above to the Commissioner within**thir~y ~30)**  

### days ofreceipt of a written request from the**Comm~ss~oner.** 

### 7. Pursuant to the intent of Section 22a-174-22a(fl(4) of the Regulations, NGC may! for a budget source, use allowances acqyired pursuant to the**prov~sions** 

### of Section 22a-174-22a of the Regulations to comoly with subsection (e) of Section 22a-174-22 of the Regulations Eursuant to the provisions of subsection (j) 

### of Section 22a-174-22 or the Regulations as long as NGC remains an owner of that budget source, tor purooses of chis Trading Agreement and Order. Any allowance used tor compliance with subsection (e) of


### Initials -3- Date 

## //.zc/.uct?Northeast Generation Company Trading Agreement and Order No. 8175

8.

9.

10.

11. Section 22a-174-22 of the Regulations shall be subject to all restrictions and/or reauirements aDolicable to ERCs contained in this Trading Agreement-and Order ana/or Section 22a-174-22a of the Regulations. The terms and conditions established by this Trading Agreement and Order shall become effective on the date NGC purchases the peaking unit identified in Table 1 of this TradingAgreement and Oraer, and upon issuance of this Trading Agreement and Order. No later than May 1, 2003, NGC shall comDlywith the**re~irements** of Section 22a-174-22(dl(2) of the Regulations. However, after full orogramreview of this andotherTrading Agreements and Orders and, ifaetermined to be aooropriate. the Commissionermaygrant a written extension oftnis Trading Agreement and Order.**8efioit~ons.** As used in this order, "Commissioner" means the**omm~ss~oner** of Environmental Protection or an agent of the Commissioner. "Otheroil" means a fuel that is li9Uid at standard conditions and is not residual oil. "Residual oil' means any fuel oil ofNo.4, No. S. orNo.6 grades, as defined by Commercial Standard C.S. 12-48. "Ozone season" means the**oer~od** fromMay 1 through Seotember 30 in any given calendar**year~** "Issuance" means the date this TradingAgreement and Order is deoosited in the u.S. Mail or the date it**~s** personally delivered, whichever is earlier.
Notificaai§D ofnoncomoliance, In the event that NGC becomes aware**t~at ~t.**  1 not or**~ay** not comply, or**d~d** not or may not comply on**t~me, w~th**  any**reau~rement** of**th~s Trad~ng**  Agreement and Orderor or any document reauired**here~~der,** NGC shall br telephone immediately notify the Bureau ofAirManagement and shal take all reasonable steos to ensure that any noncomoliance or delav is avoided or, if unavoidable, is minimized to the greatest extent oossible. NGC shall also notify the Commissioner in writing within ten days of becoming aware of the noncompliance orpotential noncomnliance stating the date, time, anduuration of the noncomoliance, the reasons for the noncomoliance ordelay and all activities which NGC and its agents, emoloyees and representatives took to avoid or reoair the results-of the**noncomoli~~ce** and orevent the**noncomoliCL~ce,** andpronose, for the review and written aoproval of the Commissioner, dates by which comoliance will be achieved. NGC shall comply with.any dates which may be aooroved in writing by the Commissioner. Notif1cation byNGC snaIl not excuse noncompliance or delay, and the Commissioner's approval of any compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated by the Com

... nissioner in writing·. Nothlng herein shall negate NGC's obligation'to comolywith Section 22a-174-7 of the Regulations. To the extent that the orovisions of Section 22a-174-7 are inconsistent with the orovisions of this Trading Agreement and Order, the more stringent

# of the orovisions in the TraaingAgreement and Order or Section 22a-174-7 shall control. 12.**Certificat~on** of**do~uments,** Any document, including but not limited to any**not~ce,** WhlC. 1S reauirea to be submitted to the Commissioner under this TradingAgreement and Order shall be signedby the responsible corporate officerofNGC or a duly autnorizea reoresentative of such officer, as those terms are defined in Section 22a-430-3(b)(2) of the**Re~lations,** andby the individual or individuals resoonsible for actuallyoreoaring such document, each of whom shall examine and be familiar·with the information submitted in the document and all attachments thereto( and shall make inquiry of those individuals responsible for**obtai~~ng** the information to determine that the information is true, accurate, and complete, and each of whom shall certify in writing as follows: "I have personally examined and am familiar with the information submittea in this document and all attachments thereto( and I certify that based on reasonable investigation, includlng my inquiry


### Initials -4- Date

# ';2~/.2."'PNortheast Generation Company Trading Agreement and Order No. 8175

13.

14

.

15.

16.

17.

18.

19. of those individuals responsible for obtaining the information, 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 may be nunishable as a criminal offense under Section 22a-175 of the Connecticut General Statutes or, in accordance with Section 22a-6 of the**Cop~ecticut** General Statutes, under Section 53a-157b of the**Cop~ecticut** General Statutes, and in accordance with any other applicable statute."**rIg~f ~~~~~~~g~** **~gg** orser. This Trading Agreement and Order is the or er by and between tne Commissioner and NGC with resnect,to the matters addressed herein, and shall not be modified·without the written agreement of both parties. False scatemeRts, Any false statement in any information submitted pursuant to t 1S Tradlng Agreement and Order may be punlshable as a criminal offense under Section 22a-175 of the**Connect~cut** General Statutes or, in accordance with Section 22a-6, under Section 53a-1S7b of the Connecticut General Statutes. N0ffce of !ra§Sfer; lfiebi+itv of**~GC** and otheas, Until NGC has !u y comp**~e** wlth t lsradlnggreement an Order, NGC shall notify the Commissioner in writlng no later than fifteen (15) days after transferring all or any portion of the facility, the ooerations, the**s~te** or the nusiness which are the sUbject of this Trading Agreement and Order, or obtaining a new mailing or location address, 

### Any license transfer shall be conducted in accordance with Section 22a-60 of the**Coa~ecticut** General Statutes. NGC's obligations under this Trading Agreement and Order shall not be**affect~d.by ~he**  passage of title to any property to any other person or**mun~c~pal~ty. C9~fsstQner's**  powers.**~othing** in**thi~ Tradi~g**  Agreement and Order sna arrect tne**Comm~ssloner's** authorlty to**lnst~tute** any oroceeding or take any other action to orevent or abate**v~olations** of law, nrevent or abate pollution, recover costs and natural resource-damages and to lmnose nenalties for violations of law which are willfui or criminally negligent or for which penalties have not been soecificallrnrovidea in this Trading Agreement and Order, including but not imited to violations of any oermit issued by the Commissioner. If at any time the Commissioner aetermines that the actions taken by NGC nursuant to this Trading Agreement and Order have not fully achleved**complian~e** with Section 22a-174-22 

### of the Regulations, the Commissioner may institute any nroceeding against NGC and/or require NGC to unaertake further investigation or further action. NGa'S**oblioati~os unde~** **l~wl** Nothing in this Trading Agreement and Or er

### snaIl re 1eve NG 

# 0: other**obl~gations** under**appl~cable** federal,' state and local law.

. Access to re.ords and**faci~** 

### Any representative**o~** the Deoartment or**Env~ronmentar-PrOtectlon**

### may enter and lnsoect the facility and insnect**~~d** copy records witnin normal business hours without prior notice for the purposes of monitoring and enforcing the actions required or allowed ny this Trading Agreement and Oraer. No**effe~t ~n** **r~gnts** of other**per~9ns,** This Trading Agreement and Order s al neltner create nor arrect any rights 9I persons who or municioalities which are not narties to this Tradlng Agreement and Order.

. .

21. 20. 

### No Creation of Prooertv Riahts: This,T;ading Agreement and Order aoes not create**~'y** property**r~ghts w~tn**  respect to these ERCs.**~Qtice**

# EO Commissioner

## ot chanoes, Within fifteen (IS) days of the aate NG becomes aware or a change in any information subm1.tted to the**Com~issioner** under this**Trad~ng** Agreement and Order, or that any**suc~tion** 

### was inaccurate ormisleading or that any relevant

Initials -5- Date

### ~..l.t-/J..()()(l

### Northeast Generation Company Trading Agreement and Order No. 8175
information was omitted/ NGC shall submit the correct or omitted information to the Commlssioner. 22.**S~bmission** 9'**dQcum~nts. P~y**  

### document recruired to be submitted co tne Commlsslonerunaer this Trading Agreement and Order shall,**u~less** 

### otherwise specified in writlng.by the Commissioner, be dlrected to: Mr. David Jawin Deoartment ofEnvironmental Protection Bureau ofAir Management Compliance and Field ODerations Division Emissions and Credit Trading Section 79 

### Elm Street Hartford, Connecticut 06106



### NGC consents to the issuance of this TradingAgreement and Orderwithout fu=ther notice. The undersigned certifies that he/she is fully authorized enter into this Trading Agreement and Orderand to legally binaNGC to the terms and 

### conditions or tne Trading Agreement and Order. to



### Signature:


### Type Name:


### Type Title,

Date:

## ~~ompanY

Bruce D. Kenyon

President

January 

### 26. lOOO



### Issued as a final consent order of the Commissioner of

Environmental Protection on

rthur J. 

### RQcaue, 

### Jr. Commission

.. - 

### TOWN/CITYOF PRBSTON LANDRECORDS**~AILED** 

### CERTIFIED

### MAIL, RETURN RECEIPT REQUESTED



### .- Certified Document,

-6-