CALIFORNIA AIR RESOURCES BOARD 

SIP COMPLETENESS CHECKLIST 

(Electronic Format) 

*** TO BE COMPLETED BY DISTRICT AND RETURNED TO ARB *** 

All rules submitted to the EPA as State Implementation Plan (SIP) revisions must be supported by certain information 

and documentation for the rule packages to be deemed complete for review by the EPA. Rules will not be evaluated for 

approvability by the EPA unless the submittal packages are complete. To assist you in determining that all necessary 

materials are included in rules packages sent to the ARB for submittal to the EPA, please fill out the following form and 

include it with the rule package you send ARB. See the ARB's Guidelines on the Implementation of the 40 CFR 51, 

Appendix V, for a more detailed explanation than is provided here. Adopted rules and rule amendments should be 

checked against U.S. EPA's Guidance Document for Correcting Common VOC & Other Rule Deficiencies (Little Blue 

Book, August 21, 2001) to ensure that they contain no elements which will result in disapproval by EPA. 

District SJVUAPCD Rule No. 4902 Date Adopted March 19, 2009.

Rule Title Rule 4902 (Residential Water Heaters)

ADMINISTRATIVE MATERIALS 

Note: All documents should be in electronic format. Items that have signatures, initials, or stamps may be scanned. 

 Not 

Attached Attached N/A

(X) ( ) ( ) COMPLETE COPY OF THE RULE: Provide an unmarked copy of the entire 

rule as adopted or amended by your District Board. 

(X ) ( ) ( ) UNDERLINE AND STRIKEOUT COPY OF THE RULE: If an amended rule, 

provide a complete copy of the rule indicating in underline and strikeout format 

all language which has been added, deleted, or changed since the rule was 

last adopted or amended. 

( ) (X) ( ) COMPLETE COPY OF THE REFERENCED RULE(S): For any rule which 

includes language specifically referencing another rule, a copy of that other 

rule must also be submitted, unless it has already been submitted to EPA as 

part of a previous SIP submittal. 

(X) ( ) ( ) PUBLIC NOTICE EVIDENCE: Include a copy of the local newspaper clipping 

certification(s), stating the date of publication, which must be at least 30 days 

before the hearing. As an alternative, include a copy of the actual published 

notice of the public hearing as it appeared in the local newspaper(s). In this 

case, however, enough of the newspaper page must be included to show the 

date of publication. The notice must specifically identify by title and number 

each rule adopted or amended. 

(X) ( ) ( ) RESOLUTION/MINUTE ORDER: Provide the Board Clerk certified resolution 

or minute order. This document must include certification that the hearing 

was held in accordance with the information in the public notice. It must also 

list the rules that were adopted or amended, the date of the public hearing, 

and a statement of compliance with California Health and Safety Code 

Sections 40725-40728 (Administrative Procedures Act). 

( ) ( ) (X) PUBLIC COMMENTS AND RESPONSES: Submit copies of written public 

comments made during the notice period and at the public hearing. Also 

submit any written responses prepared by the District staff or presented to the 

District Board at the public hearing. A summary of the public comments and 

responses is adequate. If there were no comments made during the notice 

period or at the hearing, please indicate N/A to the left. 
 

CALIFORNIA AIR RESOURCES BOARD 

SIP COMPLETENESS CHECKLIST 

(Electronic Format)

TECHNICAL MATERIALS 

Note: All documents and forms should be in electronic format. 

 Not 

Attached Attached N/A

(X) ( ) ( ) RULE EVALUATION FORM: See instructions for completing the Rule 

Evaluation Form and the accompanying sample form. 

( ) ( ) (X) NON-EPA TEST METHODS: Attach all test methods that are referenced in 

your rule that do not appear in 40 CFR 51, 60, 61, 63, or have not been 

previously submitted to EPA. EPA methods used in other media such as 

SW846 for solid waste are not automatically approved for air pollution 

applications. Submittal of test methods that are not EPA-approved should 

include the information and follow the procedure described in Region 9’s “Test 

Method Review & Evaluation Process.” 

( ) ( ) (X) MODELING SUPPORT: Provide if appropriate. In general, modeling support is 

not required for VOC and NOx rules to determine their impacts on ozone 

levels. Modeling is required where a rule is a relaxation that affects large 

sources (> 100 TPY) in an attainment area for SO2, directly emitted PM10, 

CO, or NOx (for NO2 purposes). In cases where EPA is concerned with the 

impact on air quality of rule revisions which relax limits or cause a shift in 

emission patterns in a nonattainment area, a reference back to the approved 

SIP will be sufficient provided the approved SIP accounts for the relaxation 

and provided the approved SIP used the current EPA modeling guidelines. If 

current EPA modeling guidelines were not used, then new modeling may be 

required. 

( ) ( ) (X) ECONOMIC AND TECHNICAL JUSTIFICATION FOR DEVIATIONS FROM 

EPA POLICIES: The District staff report or other information included with the 

submittal should discuss all potential relaxations or deviations from RACT, 

RACM, BACT, BACM, enforceability, attainment, RFP, or other relevant EPA 

requirements. This includes, for example, demonstrating that exemptions or 

emission limits less stringent than the presumptive RACT (e.g., a CTG) meet 

EPA’s 5 percent policy, and demonstrating that all source categories 

exempted from a RACM/BACM rule are de minimus according to EPA’s 

RACM/BACM policy. 

(X) ( ) ( ) ADDITIONAL MATERIALS: Provide District staff reports and any other 

supporting information concerning development of the rule or rule changes. 

This information should explain the basis for all limits and thresholds 

contained in the rule. 
CALIFORNIA AIR RESOURCES BOARD 

APCD/AQMD RULE EVALUATION FORM – Page 1 

(Electronic Format) 

I. GENERAL INFORMATION

District: SJVUAPCD

Rule No(s): 4902 Date adopted/Amended/Rescinded: Amended Rule 4902 March 19, 2009.

Rule Title(s): Rule 4902 (Residential Water Heaters)

Date Submitted to ARB: April 3, 2009

If an Amended Rule, Date Last Amended (or Adopted): Rule 4902 Adopted June 17, 1993

Is the Rule Intended to be Sent to the U.S. EPA as a SIP Revision? Yes No (If No, do not complete remainder of form)

District Contact: Lisa Van de Water Phone Number: (559) 230-6100 E-mail Address: lisa.vandewater@valleyair.org

Narrative Summary of New Rule or Rule Changes: New Rule Amended Rule 

Amendments to Rule 4902 satisfy control measure commitments included in both the Disrict's 2007 Ozone Plan 

and the 2008 PM2.5 Plan. Amendments to Rule 4902 removed the existing exemption for units used exclusively 

to heat pools or hot tubs (pool heaters). Additionally, Rule 4902 establishes more stringent NOx limits for water 

heaters including pool heaters and instantaneous water heaters with a rated heat input of less than or equal to 

75,000 Btu/hr. Details of the proposed changes to Rule 4902 are discussed in Section II of the final draft staff 

report.

Pollutant(s) Regulated by the Rule (Check): ROG (NOx) SO2 

 (CO) PM TAC (name): 

II. EFFECT ON EMISSIONS

Complete this section ONLY for rules that, when implemented, will result in quantifiable changes in emissions. Attach reference(s) for emission 

factor(s) and other information. Attach calculation sheet showing how the emission information provided below was determined. 

Net Effect on Emissions: Increase Decrease N/A 

Emission Reduction Commitment in SIP for this Source Category: NOx: 0.85 tons per day.

Inventory Year Used to Calculate Changes in Emissions: 2005 Area Affected: SJV Air Basin

Future Year Control Profile Estimate (Provide information on as many years as possible): 

Percent reduction from 2010- 2010: 8.33% 2011: 16.66% 2012: 24.99% 2013: 33.32% 2014: 41.65% 2015: 49.98% 

2016: 58.31% 2017: 66.64% 2018: 74.97% 2019: 83.3% 2020: 91.63% 2021: 99.96%
 

CALIFORNIA AIR RESOURCES BOARD 

APCD/AQMD RULE EVALUATION FORM - Page 2 

(Electronic Format) 

Baseline Inventory in the SIP for the Control Measure: 1.37 tons per day of NOx.

Emissions Reduction Commitment in the SIP for the Control Measure: NOx: 0.85 tons per day.

Revised Baseline Inventory (if any): None

Revised Emission Reduction Estimate (if developed): NOx: 1.03 tons per day (75% reduction from calculated baseline 

emissions of 1.41 tons per day of NOx). 

Note that the district’s input to the Rule Evaluation Form will not be used as input to the ARB’s emission forecasting and 

planning. 

III. SOURCES/ATTAINMENT STATUS

District is: Attainment Nonattainment Split 

Approximate Total Number of Small (<100 TPY) Sources Affected by this Amendment: N/A

Percent in Nonattainment Area: N/A% 

Number of Large (> 100 TPY) Sources Controlled: N/A Percent in Nonattainment Area: N/A% 

Name(s) and Location(s) (city and county) of Large (> 100 TPY) Sources Controlled by Rule (Attach additional sheets as 

necessary): N/A

IV. EMISSION REDUCTION TECHNOLOGY

Does the Rule Include Emission Limits that are Continuous? Yes No 

If Yes, Those Limits are in Section(s) 5.0 of the Rule. 

Other Methods in the Rule for Achieving Emission Reductions are: N/A

V. OTHER REQUIREMENTS

The Rule Contains: 

Emission Limits in Section(s): 5.0 Work Practice Standards in Section(s): 5.0

Recordkeeping Requirements in Section(s): 6.0 Reporting Requirements in Section(s): 6.0
 

5/1/2002 

CALIFORNIA AIR RESOURCES BOARD 

APCD/AQMD RULE EVALUATION FORM - Page 3 

(Electronic Format) 

VI. IMPACT ON AIR QUALITY PLAN

 No Impact Impacts RFP Impacts attainment 

Discussion: 

1. Amendments to Rule 4902 apply to residential water heaters less than or equal to 75,000 Btu/hr. NOx emissions

reductions are generated by removing an exemption from the rule and by lowering the applicable NOx limits for new and 

replacement water heaters at the time of sale. The total exemption for pool heaters would be removed making Rule 4902 

similar to other air districts. After January 1, 2010 these units must meet all applicable requirements of the rule. Pool 

heaters would have to meet a NOx limit of 40 nanograms per joule of heat output. Instantaneous water heaters would 

have to meet a NOx limit of 14 nanograms per joule of heat output on and after January 1, 2012. All other applicable units 

would have to meet lower NOx limits of 10 nanograms per joule of heat output on and after January 1, 2010. 
SJVUAPCD 

990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT PROPOSED AMENDMENTS TO RULE 4902 (RESIDENTIAL WATER HEATERS) 

March 19, 2009 

BEFORE THE GOVERNING BOARD OF THE 

SAN JOAQUIN VALLEY UNIFIED - 

AIR POLLUTION CONTROL DISTRICT 

IN THE MATTER OF: PROPOSED 

AMENDMENTS TO RULE 4902 

) RESOLUTION NO. 09-03-13 

1 

(RESIDENTIAL WATER HEATERS) i 

WHEREAS, the San Joaquin Valley Unified Air Pollution Control District (District) is a 

duly constituted unified air pollution control district, as provided in California Health 

and Safety Code Sections 40150 et seq. and 40600 et seq.; and 

WHEREAS, said district is authorized by California Health and Safety Code Section 

40702 to make and enforce all necessary and proper orders, rules, and regulations to 

accomplish the purpose of Division 26 of the California Health and Safety Code; and 

WHEREAS, pursuant to Section 107 of the federal Clean Air Act, the San Joaquin 

Valley Air Basin has been classified as a nonattainment area for the national healthbased air quality standards for ozone and particulate matter with aerodynamic 

diameter of 2.5 micrometers or less jPM2.5); and 

WHEREAS, pursuant to Section 39608 of the California Health and Safety Code, the 

San Joaquin Valley Air Basin has been classified as a nonattainment area for the state 

health-based air quality standards for ozone and PM2.5; and 

WHEREAS, the California Clean Air Act as codified in Section 40910 et seq. of the 

California Health and Safety Code requires the District's ozone attainment plan to be 

designed to reduce ozone precursor emissions by at least five percent per year or to 

include every feasible emission control measure; and 

WHEREAS, the District's 2007 Ozone Plan and the District's 2008 PM2.5 Plan 

fulfilled both federal and state mandates by committing the District to develop and 

adopt all feasible emission control measures including rule amendments to reduce 

emissions of oxides of nitrogen from residential water heaters; and 

111 

Resolution for Proposed 

Amendments to Rule 4902 
SJVUAPCD 

990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT PROPOSED AMENDMENTS TO RULE 4902 (RESIDENTIAL WATER HEATERS) 

March 19, 2009 

WHEREAS, a public hearing for the adoption of amendments to Rule 4902 

(Residential Water Heaters) was duly noticed for March 19, 2009, in accordance with 

California Health and Safety Code Section 40725. 

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 

1. The Governing Board hereby adopts amendments to Rule 4902 (Residential 

Water Heaters). Said rule shall become effective on March 19, 2009. 

2. The Governing Board hereby finds, based on the evidence and information 

presented at the hearing upon which its decision is based, all notices required to be 

given by law have been duly given in accordance with California Health and Safety 

Code Section 40725, and the Governing Board has allowed public testimony in 

accordance with California Health and Safety Code Section 40726. 

3. In connection with said rulemaking, the Governing Board makes the following 

findings as required by California Health and Safety Code Section 40727: 

a. NECESSITY. The Governing Board finds, based on the staff report, and 

on public and industry testimony, on the record for this rulemaking proceed~ng that a 

need exists for the said rule amendments. The said rule amendments are necessary 

to meet the commitments of the State Implementation Plan and requirements of the 

federal Clean Air Ac, and the California Clean Air Act. Said rule amendments satisfy 

the District's commitment in the District's 2007 Ozone Plan and District's 2008 PM2.5 

Plan. 

b. AUTHORITY. The Governing Board finds that it has the legal authority 

for said rulemaking under the California Health and Safety Code Sections 40000 and 

40001. 

c. CLARITY. The Governing Board finds that said rule is written or 

displayed so that the meaning can be easily understood by those persons or 

industries directly affected by the said rule. 

Ill 

Resolution for Proposed 

Amendments to Rule 4902 
SJVUAPCD 

990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT PROPOSED AMENDMENTS TO RULE 4902 (RESIDENTIAL WATER HEATERS) 

March 19,2009 

= 

d. CONSISTENCY. The Governing Board finds that said rule 

amendments are in harmony with, and not in conflict with or contradictory to, existing 

statutes, court decisions, or state or federal regulations. 

e. NONDUPLICATION. The Governing Board finds that said rule 

amendments do not impose the same requirements as any existing state or federal 

regulation. 

f. REFERENCE. The Governing Board finds that said rulemaking 

implements Section 172(c)(l) of the federal Clean Air Act, and Section 40920 of the 

California Health and Safety Code. 

4. The Governing Board hereby finds that the requirements of California Health 

and Safety Code Sections 40728.5 and 40920.6 have been satisfied to the greatest 

extent possible, and that the Governing Board has actively considered and made a 

good faith effort to minimize any adverse socioeconomic impacts associated with the 

proposed rulemaking. 

5. In connection with said rulemaking and based on the evidence and information 

presented at the hearing upon which its decision is based, the Governing Board makes 

the following findings as required by California Health and Safety Code Section 

40920.6: 

a. Implementation of Proposed Amendments to Rule 4902 (Residential Water 

Heaters) will significantly reduce emissions of oxides of nitrogen (NOx); 

b. NOx emission reductions will benefit San Joaquin Valley public health by 

reducing unhealthful ambient concentrations of ozone and particulate matter; 

c. Techniques and technologies that comply with said rule amendments are 

available and currently in use in the San Joaquin Valley; 

d. Complying with said rule amendments is not expected to constitute an 

undue burden on affected sources; 

111 

Resolution for Proposed 

Amendments to Rule 4902 
SJVUAPCD 

990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT PROPOSED AMENDMENTS TO RULE 4902 (RESIDENTIAL WATER HEATERS) 

March 19, 2009 

- 

e. Implementation of said rule amendments will advance longstanding 

commitments by the District to implement every feasible measure for the reduction of 

ozone and particulate matter precursor emissions. 

6. The District has completed an Initial Study for said rule amendments that 

indicates the project will not result in any significant adverse effects to the 

environment, and the proposed actions for Rule 4902 are exempt under the 

provisions of Sections 15061 (b)(3) of the State CEQA Guidelines. In accordance 

with the provisions of Section 15075 of the California Environmental Quality Act 

Guidelines, the Executive DirectorlAir Pollution Control Officer is hereby directed to 

cause to be filed a Notice of Exemption with the County Clerks of each of the counties 

in the District. 

7. The Executive DirectorlAir Pollution Control Officer is directed to file with all 

appropriate agencies certified copies of this resolution and the rule adopted herein and 

is directed to maintain a record of this rulemaking proceeding in accordance with 

California Health and Safety Code Section 40728. 

8. The Executive DirectorIAir Pollution Control Officer is directed to transmit said 

rule to the California Air Resources Board for incorporation in the State Implementation 

Plan. 

9. The Governing Board authorizes the Executive DirectorlAir Pollution Control 

Officer to include in the submittal or subsequent documentation any technical 

corrections, clarifications, or additions that may be needed to secure EPA approval, 

provided such changes do not alter the substantive requirements of the approved rule. 

Ill 

Ill 

Ill 

Ill 

Ill 

Resolution for Proposed 

Amendments to Rule 4902 
SJVUAPCD Governing Board 

ADOPT PROPOSED AMENDMENTS TO RULE 4902 (RESIDENTIAL WATER HEATERS) 

March 19, 2009 

3 11 THE FOREGOING was passed and adopted by the following vote of the 

4 Governing Board of the San Joaquin Valley Unified Air Pollution Control District this I I 

5 19th day of March 2009, to wit: I I 

AYES: Barba, Case, Dominici, Forman, Nelson, 

Ornellas, Telles, Vierra, Watson, Worthley 

SJVUAPCD 

:990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

l9 

20 

2 1 

22 

23 

24 

25 

26 

Resolution for Proposed 

Amendments to Rule 4902 

NOES: None 

ABSENT: 0' Brien 

SAN JOAQUIN VALLEY UNIFIED 

AIR POLLUTION CONTROL DISTRICT 

BY 

P 

Chris fir[^ Vierra, Chair 

Governing Board 

ATTEST: 

Clerk to the Governing Board 

By 

 PROPOSED March 19, 2009

4902 - 1 Proposed Amendments to Rule 4902

RULE 4902 RESIDENTIAL WATER HEATERS (Adopted June 17, 1993; Amended (Rule 

Adoption Date)) 

1.0 Purpose 

 The purpose of this rule is to limit oxides of nitrogen emissions from residential water 

heaters. 

2.0 Applicability 

 This rule applies to residential manufacturers, distributors, retailers, and installers of PUC 

quality natural gas-fired residential water heaters with heat input rates less than or equal 

to 75,000 Btu/hr. 

3.0 Definitions 

3.1 Air Pollution Control Officer (APCO): As defined in Rule 1020 (Definitions). 

3.2 California Public Utility Commission (PUC) Quality Natural Gas: Any gaseous 

fuel, gas-containing fuel where the sulfur content is no more than one-fourth 

(0.25) grain of hydrogen sulfide per one hundred (100) standard cubic feet and no 

more than five (5) grains of total sulfur per one hundred (100) standard cubic feet. 

 PUC quality natural gas also means high methane gas of at least 80% methane by 

volume.

 3.1 Natural Gas-Fired Water Heater: A closed vessel, in which water is heated by the 

combustion of natural gas and is withdrawn for use external to the vessel at 

pressures not exceeding 160 psig, including the apparatus by which heat is 

generated and all controls and devices necessary to prevent water temperatures 

from exceeding 210°F

 3.2 Natural Gas: A mixture of gaseous hydrocarbons containing at least 80 percent 

methane by volume as determined according to Standard Method ASTM D1945-

64

 3.3 Heat Output: The product obtained by multiplying the recovery efficiency, as 

defined by Section 6.1.3 of the Code of Federal Regulation, Title 10, Part 430, 

Subpart B, Appendix E, by the input rating of the water heater. 

 3.4 Input Rating: The amount of energy a water heater consumes in one hour 

(Btu/Hour). 

3.5 Instantaneous Water Heater: A water heater that heats water only when it flows 

through a heat exchanger.
 PROPOSED March 19, 2009

4902 - 2 Proposed Amendments to Rule 4902

3.6 Mobile Home Water Heater: A closed vessel manufactured exclusively for 

mobile home use in which water is heated by combustion of gaseous fuel and is 

withdrawn for use external to the vessel at pressures not exceeding 160 psig, 

including the apparatus by which heat is generated and all controls and devices 

necessary to prevent water temperatures from exceeding 210oF (99oC).

3.7 Pool Heater: A water heater designed to heat a pool, hot tub, or spa.

3.8 Water Heater: A closed vessel, in which water is heated by the combustion of

PUC quality natural gas and is withdrawn for use external to the vessel at 

pressures not exceeding 160 psig, including the apparatus by which heat is 

generated and all controls and devices necessary to prevent water temperatures 

from exceeding 210°F (99oC).

4.0 Exemptions 

 4.1 PUC quality nNatural gas-fired water heaters with rated heat input of greater than 

75,000 Btu per hour. 

 4.2 Water heaters using fuels other than PUC quality natural gas. 

4.3 Pool heaters. Natural gas-fired heaters used exclusively to heat swimming pools 

or hot tubs. On and after January 1, 2010, pool heaters shall comply with all 

applicable requirements of this rule. 

 4.4 Water heaters used exclusively in recreational vehicles. 

5.0 Requirements 

5.1 Natural Gas-Fired Water Heaters with a rated heat input less than or equal to 

75,000 Btu/hr: On and before December 31, 2009, no No person shall sell, install 

or offer for sale within the District any PUC quality natural gas-fired water heater 

manufactured after December 17, 1993, except for mobile home water heaters 

subject to Section 5.2, that emits more than unless the water heater is certified 

pursuant to Section 6.1 to a NOx emission level of less than or equal to 40 

nanograms of nitrogen oxides (calculated as NO2) per Joule of heat output. 

5.2 No person shall manufacture for sale, distribute, sell, offer for sale, or install 

within the District any PUC quality natural gas-fired mobile home water heater 

unless the water heater is certified pursuant to Section 6.1 to a NOx emission level 

of less than or equal to 40 nanograms of NOx (calculated as NO2) per joule of 

heat output.

5.3 On and after January 1, 2010, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired pool 
 PROPOSED March 19, 2009

4902 - 3 Proposed Amendments to Rule 4902

heater unless the water heater is certified pursuant to Section 6.1 to a NOx 

emission level of less than or equal to 40 nanograms of NOx (calculated as NO2) 

per joule of heat output.

5.4 On and after January 1, 2010, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired water 

heater, excluding mobile home water heaters, instantaneous water heaters, and

pool heaters, unless the water heater is certified pursuant to Section 6.1 to a NOx 

emission level of less than or equal to 10 nanograms of NOx (calculated as NO2) 

per joule of heat output.

5.5 On and after January 1, 2012, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired 

instantaneous water heater unless the water heater is certified pursuant to Section 

6.1 to a NOx emission level of less than or equal to 14 nanograms of NOx 

(calculated as NO2) per joule of heat output.

 5.2 Certification of Water Heaters: Water heaters subject to section 4.1 of this rule 

shall be certified in accordance with sections 5.1, 5.2 and 5.3.

6.0 Administrative Requirements 

 6.1 Certification

 6.1.1 Each tested water heater undergoing testing shall be operated in 

accordance with Section 2.4 of American National Standards ANSI 

Z21.10.1-1990, Z21.10.3-2004, or Z21.56-2006, as applicable, at normal 

test pressure, input rates, and with a five-foot exhaust stack installed 

during the nitrogen oxides emission tests. 

 6.1.2 6.2 Certification: The manufacturer shall demonstrate that each water 

heater model subject to the requirements of sSection 4.15.0 has been tested 

in accordance with EPA Reference Test Method 7E, 40 CFR Part 60, 

Appendix A. 

 6.1.3 6.2.1 The following formula shall be used to calculate the emissions of 

NOx in nanograms of NOx per Joule of heat output: 

 N = (4.566 x 104

 x P x U)/(H x C x E) 

 Where: 

 N = NOX emission rate in nanograms of NOX emitted 

per Joule of heat output 
 PROPOSED March 19, 2009

4902 - 4 Proposed Amendments to Rule 4902

 4.566 x 104 = unit conversion factor (ppm to nanograms and Btu 

to Joules) 

 P = Concentration of NOX in the flue gas in parts per 

million (volume) 

 U = Dry volume percent of CO2 in flue gas necessary for 

stoichiometric combustion 

 H = Gross heating value of the gas, Btu/Cu ft (at 60°F 

and 30" Hg) 

 C = Dry volume percent of CO2 in flue gas 

 E = Recovery efficiency, percentage, as defined in 

Section 6.1.3 of the Code of Federal Regulation, 

Title 10, Part 430, Subpart B, Appendix E 

 6.1.4 6.2.2 The manufacturer may submit to the APCO an approved South 

Coast Air Quality Management District Rule 1121 (Control of Nitrogen 

Oxides From Residential Type, Natural Gas-Fired Water Heaters) 

SCAQMD, Ventura County Air Pollution Control District Rule 74.11 

(Natural Gas-Fired Residential Water Heaters – Control of NOx), or Bay 

Area Air Quality Management District Regulation 9 Rule 6 (Nitrogen 

Oxides Emissions from Natural Gas-Fired Boilers and Water Heaters) 

BAAQMD certification in lieu of conducting duplicative certification tests 

pursuant to Section 6.1. 

 6.1.5 6.3 Compliance Statement: Upon request of the APCO, each 

manufacturer shall submit to the APCO a statement certifying the water 

heaters subject to this rule are in compliance with the provisions of 

sSection 5.01. The statement shall be signed, dated and shall attest to the 

accuracy of all information. The statement shall include: 

 General Information:

6.1.5.1 Name and address of manufacturer, 

6.1.5.2 Brand name, 

6.1.5.3 Model number, as it appears on the water heater rating plate, 

and

6.1.5.4 Heat input rating, Btu/hr. 

 6.2 6.4 Identification: For units subject to Section 5.0, tThe manufacturer shall 

display the following the model number of the water heater and date of 

manufacture on the shipping carton and rating plate of each unit.:

6.2.1 the model number,

6.2.2 the date of manufacture, and

6.2.3 the certification status.
 PROPOSED March 19, 2009

4902 - 5 Proposed Amendments to Rule 4902
 PROPOSED March 19, 2009

4902 - 6 Proposed Amendments to Rule 4902

This page intentionally blank.
SJVUAPCD 4902 - 1 3/19/2009 

RULE 4902 RESIDENTIAL WATER HEATERS (Adopted June 17, 1993; Amended March 

19, 2009) 

1.0 Purpose 

 The purpose of this rule is to limit oxides of nitrogen emissions from residential water 

heaters. 

2.0 Applicability 

 This rule applies to manufacturers, distributors, retailers, and installers of PUC quality 

natural gas-fired residential water heaters with heat input rates less than or equal to 

75,000 Btu/hr. 

3.0 Definitions 

3.1 Air Pollution Control Officer (APCO): As defined in Rule 1020 (Definitions). 

3.2 California Public Utility Commission (PUC) Quality Natural Gas: Any gaseous 

fuel, gas-containing fuel where the sulfur content is no more than one-fourth 

(0.25) grain of hydrogen sulfide per one hundred (100) standard cubic feet and no 

more than five (5) grains of total sulfur per one hundred (100) standard cubic feet. 

 PUC quality natural gas also means high methane gas of at least 80% methane by 

volume. 

 3.3 Heat Output: The product obtained by multiplying the recovery efficiency, as 

defined by Section 6.1.3 of the Code of Federal Regulation, Title 10, Part 430, 

Subpart B, Appendix E, by the input rating of the water heater. 

 3.4 Input Rating: The amount of energy a water heater consumes in one hour 

(Btu/Hour). 

3.5 Instantaneous Water Heater: A water heater that heats water only when it flows 

through a heat exchanger. 

3.6 Mobile Home Water Heater: A closed vessel manufactured exclusively for 

mobile home use in which water is heated by combustion of gaseous fuel and is 

withdrawn for use external to the vessel at pressures not exceeding 160 psig, 

including the apparatus by which heat is generated and all controls and devices 

necessary to prevent water temperatures from exceeding 210oF (99oC). 

3.7 Pool Heater: A water heater designed to heat a pool, hot tub, or spa. 

3.8 Water Heater: A closed vessel, in which water is heated by the combustion of 
SJVUAPCD 4902 - 2 3/19/2009 

PUC quality natural gas and is withdrawn for use external to the vessel at 

pressures not exceeding 160 psig, including the apparatus by which heat is 

generated and all controls and devices necessary to prevent water temperatures 

from exceeding 210°F (99oC). 

4.0 Exemptions 

 4.1 PUC quality natural gas-fired water heaters with rated heat input of greater than 

75,000 Btu per hour. 

 4.2 Water heaters using fuels other than PUC quality natural gas. 

4.3 Pool heaters. On and after January 1, 2010, pool heaters shall comply with all 

applicable requirements of this rule. 

 4.4 Water heaters used exclusively in recreational vehicles. 

5.0 Requirements 

5.1 On and before December 31, 2009, no person shall sell, install or offer for sale 

within the District any PUC quality natural gas-fired water heater manufactured 

after December 17, 1993, except for mobile home water heaters subject to Section 

5.2, unless the water heater is certified pursuant to Section 6.1 to a NOx emission 

level of less than or equal to 40 nanograms of nitrogen oxides (calculated as NO2) 

per Joule of heat output. 

5.2 No person shall manufacture for sale, distribute, sell, offer for sale, or install 

within the District any PUC quality natural gas-fired mobile home water heater 

unless the water heater is certified pursuant to Section 6.1 to a NOx emission level 

of less than or equal to 40 nanograms of NOx (calculated as NO2) per joule of 

heat output. 

5.3 On and after January 1, 2010, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired pool 

heater unless the water heater is certified pursuant to Section 6.1 to a NOx 

emission level of less than or equal to 40 nanograms of NOx (calculated as NO2) 

per joule of heat output. 

5.4 On and after January 1, 2010, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired water 

heater, excluding mobile home water heaters, instantaneous water heaters, and 

pool heaters, unless the water heater is certified pursuant to Section 6.1 to a NOx 

emission level of less than or equal to 10 nanograms of NOx (calculated as NO2) 

per joule of heat output. 
SJVUAPCD 4902 - 3 3/19/2009 

5.5 On and after January 1, 2012, no person shall manufacture for sale, distribute, sell, 

offer for sale, or install within the District any PUC quality natural gas-fired 

instantaneous water heater unless the water heater is certified pursuant to Section 

6.1 to a NOx emission level of less than or equal to 14 nanograms of NOx 

(calculated as NO2) per joule of heat output. 

6.0 Administrative Requirements 

 6.1 Certification 

 6.1.1 Each water heater undergoing testing shall be operated in accordance with 

Section 2.4 of American National Standards ANSI Z21.10.1-1990, 

Z21.10.3-2004, or Z21.56-2006, as applicable, at normal test pressure, 

input rates, and with a five-foot exhaust stack installed during the nitrogen 

oxides emission tests. 

 6.1.2 The manufacturer shall demonstrate that each water heater model subject 

to the requirements of Section 5.0 has been tested in accordance with EPA 

Reference Test Method 7E, 40 CFR Part 60, Appendix A. 

 6.1.3 The following formula shall be used to calculate the emissions of NOx in 

nanograms of NOx per Joule of heat output: 

 N = (4.566 x 104

 x P x U)/(H x C x E) 

 Where: 

 N = NOX emission rate in nanograms of NOX emitted 

per Joule of heat output 

 4.566 x 104 = unit conversion factor (ppm to nanograms and Btu 

to Joules) 

 P = Concentration of NOX in the flue gas in parts per 

million (volume) 

 U = Dry volume percent of CO2 in flue gas necessary for 

stoichiometric combustion 

 H = Gross heating value of the gas, Btu/Cu ft (at 60°F 

and 30" Hg) 

 C = Dry volume percent of CO2 in flue gas 

 E = Recovery efficiency, percentage, as defined in 

Section 6.1.3 of the Code of Federal Regulation, 

Title 10, Part 430, Subpart B, Appendix E 

 6.1.4 The manufacturer may submit to the APCO an approved South Coast Air 

Quality Management District Rule 1121 (Control of Nitrogen Oxides 

From Residential Type, Natural Gas-Fired Water Heaters), Ventura 
SJVUAPCD 4902 - 4 3/19/2009 

County Air Pollution Control District Rule 74.11 (Natural Gas-Fired 

Residential Water Heaters – Control of NOx), or Bay Area Air Quality 

Management District Regulation 9 Rule 6 (Nitrogen Oxides Emissions 

from Natural Gas-Fired Boilers and Water Heaters) certification in lieu of 

conducting duplicative certification tests pursuant to Section 6.1. 

 6.1.5 Upon request of the APCO, each manufacturer shall submit to the APCO a 

statement certifying the water heaters subject to this rule are in compliance 

with the provisions of Section 5.0. The statement shall be signed, dated 

and shall attest to the accuracy of all information. The statement shall 

include: 

 

6.1.5.1 Name and address of manufacturer, 

6.1.5.2 Brand name, 

6.1.5.3 Model number, as it appears on the water heater rating plate, 

and 

6.1.5.4 Heat input rating, Btu/hr. 

 6.2 For units subject to Section 5.0, the manufacturer shall display the following on 

the shipping carton and rating plate of each unit: 

6.2.1 the model number, 

6.2.2 the date of manufacture, and 

6.2.3 the certification status. 
Proof of Publication 

(201 5.5 C.C.P.) 

NOTICE OF PUBLIC HEARING 

MARCH 19, 2009 

RE: RULE 4902 

STATE OF CALIFORNIA ) 

) ss. 

County of Madera 1 

I am a citizen of the United States and a resident of the County 

aforesaid; I am over the age of eighteen years, and not a party 

to or interested in the above entitled matter. I am the principal 

clerk of the printer of the Madera Tribune, a newspaper of 

general circulation, published in the City of Madera, County of 

Madera, and which newspaper has been adjudged a newspaper 

of general circulation by the Superior Court of the County of 

Madera, State of California, under the date of November 9, 

1966, Case Number 4875 that the notice, of which the annexed 

is a printed copy, has been published in each regular and entire 

issue of said newspaper and not in any supplement thereof on 

the following dates, to wit: 

FEBRUARY 2,2009 

I certify (or declare) under penalty of perjury that 

the foregoing is true and correct. 

Signature 

Date: Februarv 2, 2009 

SAN JOAOUIN VALLEY UNIFIED 

AIR POLLUTION CONTROL DISTRICT 

NOTICE OF PUBLIC HEARING 

ON PROPOSED RULES 

AND REGULATIONS 

NOTICE IS HEREBY GIVEN that a publlc 

hearlng will be held on March 19, 2009, 

9.00 a m . or as soon thereafter as may be 

heard, at 1990 East Gettysburg Ave , 

Fresno, Cal~forn~a The publlc hearlng may 

also be attended through v~deo teleconferencing at San Joaquln Valley Un~f~ed Air 

Pollut~on Control Dlstrlct's (Dlstnct's) reglonal offices at 34946 F\yover Court, Bakersf~eld, Cal~forn~and at 4800 Enterprlse Way, Modesto, Cal~forn~a At sa~d 

hearing, the District's Governrng Board will 

cons~der amendlng a ~le affecting the 

countles of Fresno, Kern, Klngs, Madera, 

Merced, San Joaquln, Stan~slaus, and Tulare The following actlon w~ll be cons~dered at sa~d hearing 

Amend Rule 4902 

(Residential Water Heaters) 

NOTICE IS FURTHER GIVEN that the 

adopted rule wlll be submitted through the 

Cal~fom~a Air Resources Board to the 

Un~ted States Environmental Protect~on 

Agency for lncoporatron as part of the 

Callfornla State lmplementat~on Plan 

(SIP) The proposed actlons would constltute a SIP revlslon 

NOTICE IS FURTHER GIVEN that, pursuant to Cal~fom~a Health and Safety 

Code Sect~on 40727 2, Distnct staff has 

prepared a rule consistency analys~s for 

Proposed Rule 4902 that compares the elements of the propose* rule w~th the corresponding elements of other D~str~ct and 

federal regulat~ons and gu~dellnes that apply to the same type of equipment or 

source categories. 

NOTICE IS FURTHER GIVEN that all Interested persons deslrlng to be heard or to 

present ev~dence on sa~d matters may appear at said hearlng Interested persons 

may vlew the proposed rule at the Dlstrlct 

offlces at 1990 East Gettysburg Avenue In 

Fresno, 34946 Flyover Court In Bakersfield, and 4800 Enterprise Way in Modesto, as well as on-l~ne at. 

www. valleya~r.orS/workshops/publ~c~workshops-idx him 

Copies of the proposed rule and related 

documents w~ll be made available no later 

than February 12, 2009. To obtaln copies 

of the documents, please call (559) 230- 

5800, or FAX your request to Noem~ 

Walther at (559) 230-6064. 

Comments on the proposed rule should 

be addressed to Manuel Sal~nas, 

Proof of Publlcatlon - The Madera Tribune, P 0 Box 269, Madera, CA 93639 - (5 SJVUAPCD, 1990 East Gettysburg Ave., 

Adjudged a newspaper of general clrculatlon by Court decree No. 4875 dated Now Fresno, CA 93726 and must be rece~ved 

The Madera Tribune by 5:OO p.m February 26,2009. For additional informat~on on the proposed rule, 

contact Mr. Manuel Salinas by email at 

manuel.salinasOvalleyair.org or by phone 

at (559) 230-5800. 

No 12075 - Feb. 2,2009 
Proof of Publication This space is sAN JOAQUlN VALLEY UNIFIED A~R 

(201 5.5 C.C.P.) POLLUTION CONTROL DISTRICT 

NOTICE OF PUBUC HEARING ON 

PROPOSED RULES AND REGULATIONS 

NOTICE IS HEREBY GIVEN that a 

Public hearrng will be held on March 

19, 2009, 9 00 a m, or as soon 

thereafter as may be heard, at 1990 

East Gettysburg Ave , Fresno, Call- PUBLIC NOTICE G~B 3 J 229 forma The pub~rc hearrng may also 3 b- be attended through vldeo teleconferenclng at San Joaquln Valley 

Unlfled Arr Pollution Control DIStrld's (District's) reglonal off~ces at 

34946 Flyover Court, Bakersf~eld, 

County of Merced Calffornta and at 4800 Enterprise 

Way, Modesto, Cal~fornia At said 

hearrng the Drstnct's Govem~ng 

Board wlil conslder amendlng a rule 

I am a citizen of the United States and a resident of the affecting the count~es of Fresno, 

County aforesaid; I am over the age of eighteen years, 

Kern Klngs, Madera, Merced, San 

Joaquln Stanlslaus, and Tulare 

and not a party to or interested in the above entitled ered The following at sa~d heanng act~on WIII be cons~dpatter. I am the principal clerk of the printer of the 

Merced Sun-Star, a newspaper of general circulation, Amend Rule 4902 (Residential 

Water Heaters) 

printed and published in the City of Merced, County of NOTICE lS FURTHER GIVEN that Merced, and which newspaper has been adjudged a the adopted rule WIII be submmed 

newspaper of general circulation by the Superior Court through the Cal~fornra Air Resources Board to the Un~ted States Enof the County of Merced, State of California, under the vrronmental Protect~on Agency for 

date of July 14, 1964, Case Number 33224 that the lnCOrpOratlOn as part of the Callfornla State lmplementatlon Plan 

notice, of which the annexed is a printed COPY, has been (SIP) The proposed actrons would 

constrtute a SIP revlsron 

published in each regular and entire issue of said 

newspaper and not in any supplement thereof on the NOTICE IS FURTHER GIVEN that, 

PUrSGant to Californla Health and 

following dates, to wit: Safety Code Sectron 40727 2, DIStnct staff has prepared a rule consrstency analysrs for Proposed Rule 

JANUARY 30,2009 4902 that compares the elements of 

the proposed rule wrth the corresponding elements of other Drstrlct 

and federal regulatrons and guidelines that apply to the same type of 

WW'nent or source categorres 

NOTICE IS FURTHER GIVEN that 

all Interested persons desrrrng to be 

heard or to present evldence on 

sald matters may appear at sard 

hearrng Interested persons may 

view the proposed rule at the Drstrlct 0fflceS at 1990 East Gettysburg 

Avenue In Fresno, 34946 Flyover 

Court In Bakersf~eld, and 4800 Enterprise Way tn Modesto as well as 

01/3012009 on-lrne at 

www valleyair org/workshopslpubIlc~workshops~rdx htm 

Copies of the proposed rule and related documents will be made available no later than February 12, 

2009 To obta~n coples of the documents please call (559) 230-5800, 

or FAX your request to Noeml 

Walther at (559) 230-6064 

Comments on the proposed rule 

Should be addressed to Manuel 

Salrnas, SJVUAPCD 1990 East 

Gettysburg Ave Fresno CA 93726 

and must be recelved by 5 00 p m 

February 26, 2009 For addrtronal 

lnformatlon on the proposed rule, 

contact Mr Manuel Salrnas by 

emarl at 

manuel salrnas@valleyarr org or by 

Prwf of Publication - Merced Sun-Star, P.O. Box 739, Merced, California ! ~~~~~~,,(~~~)~

!d 

newspaper of general circulation by court decree No. 33224 ud~u duly 14, ~JU* 

Date: 

Stamp 
~FF~DAv~T OF PUBLICATION f 

1 ACCOUNT NUMBER 1658 

AD &R 

AD SIZE 

AD AMOUNT 

San Joaquin Valley 

1990 E. Gettysburg 

Fresno, CA 93726 

PUBLICATION SENT 

STATE OF CALIFORNIA 

COUNTY OF KINGS 

I AM A CITIZEN OF THE UNITED STATES AND A RESIDENT OF THE 

COUNTY FORESAID; I AM OVER THE AGE OF EIGHTEEN YEARS, AND 

NOT A PART TO OR INTERESTED IN THE ABOVE-ENTITLED MATTER. 

I AM THE PRINCIPAL CLERK OF WnRn ~F.NTTNF.T,, LDZL;. , A 

NEWSPAPER OF GENERAL CIRCULATION, PRINTED AND PUBLISHED 

DAILY IN THE CITY OF HANFORD, COUNTY OF KINGS, AND WHICH 

NEWSPAPER HAS BEEN ADJUDGED A NEWSPAPER OF GENERAL 

CIRCULATION BY THE SUPERIOR COURT OF THE COUNTY OF KINGS, 

STATE OF CALIFORNIA, UNDER THE DATE OF OCTOBER 23, 1951, 

CASE NUMBER 11623, 

THAT I KNOW FROM MY OWN PERSONAL KNOWLEDGE THE NOTICE, OF 

WHICH THE ANNEXED IS A PRINTED COPY (SET IN TYPE NOT 

SMALLER THAN NONPAREIL), HAS BEEN PUBLISHED IN EACH 

REGULAR AND ENTIRE ISSUE OF SAID NEWSPAPER AND NOT IN ANY 

SUPPLEMENT THEREOF ON THE FOLLOWING DATES, TO WIT: 

PUBLISHED ON: 2/2/2009 

PUBLISHED ON: 2/2/2009 

FILED ON: 02/02/2009 

I CERTIFY (OR DECLARE) UNDER PENALTY OF PERJURY THAT 

THE FOREGOING IS TRUE AND CORRECT. 

DATED AT KINGS COUNTY, CALIFORNIA, 

8 ~ '> 4 

THIS DAY & 0 

SIGNATURE 1 hi 

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION 

CONTROL DISTRICT 

NOTICE OF PUBLIC HEARING ON 

PROPOSED RULES AND REGULA'TIONS 

NOTICE IS HEREBY GIVEN that a publtc hearlng w~ll be held on 

March 19, 2009, 9 00 a m , or as soon thereafter as may be heard, I 

at 1990 East Gettysburg Ave , Fresno, Callforn~a The publ~c hear- 1 

Ing may also be attended thrcugh vldeo teleconferenc~ng at San 

Joaqu~n Valley Unlfled Air Pollution Control D~str~ct's (D~str~ct's) regional off~ces at 34946 Flyover Court, Bakersf~eld, Cal~fornia and at I 

4800 Enterprlse Way Modesto, Cal~forn~a At sa~d hearlng, the Dis- I 

trlct's Governing Board w~ll conslder amend~ng a rule affecting the 

countles of Fresno, Kern, K~ngs, Madera, Merced, San Joaqdn, 

Stan~slaus, and Tulare The follow~ng actton will be cons~dered at 

sald hearlng 

Amend Rille 4902 (Residential Water Heaters) 

NOTICE IS FURTHER GIVEN that the adopted rule will be subm~tted through the Cal~forn~a Air Resources Board to the Unlted States 

Env~ronmental Protect~on Agency for Incorporahon as part of the 

Callforn~a State Implementatlon Plan (SIP) The proposed actlons 

would const~tute a SIP revlslon 

NOTICE IS FURTHER GIVEN that, pursuant to Cal~fornla Health 

and Safety Code Sect~on 40727 2, Dlstrlct staff has prepared a rule 

consistency analys~s for Proposed Rule 4902 that compares the elements of the proposed rule w~th the corresponding elements of other 

D~str~ct and federal regulations and gu~dellnes that apply to the 

same type of equ~pment or source categortes I 

NOTICE IS FURTHER GIVEN that all Interested persons deslr~ng to 

be heard or to present ev~dence on sa~d mattels may appear at sa~d 

hear~ng Interested persons may vlew the proposed rule at the DIP 

trict off~ces at 1990 East Gettysburg Avenue In Fresno, 34946 

Flyover Court In Bakersf~eld, and 4800 Enterprlse Way in Modesto, 

as well as on-l~ne at 

www valleya~r or~~orkshdpslpublic~workshops~~dx htm I 

Copies of the proposed rule and related documents will be made 

avatlable no later than February 12, 2009. To obta~n copies of the 

documents, please call (559) 230-5800, or FAX your request to 

Noem~ Walther at (559) 230-6064 I 

Comments on the proposed rule should be addressed to Manuel 

Sal~nas, SJVUAPCD, 1990 East Gettysburg Ave, Fresno, CA 

93726 and must be rece~ved by 5 00 p m February 26, 2009 For 

add~t~onal lnformat~on on the proposed rule:contact Mr Manuel Salt. 

nas by emall at manuel.sal~nas@valIeymr org or by phone at (559) 

230-5800 

Publ~sh Feb 2,2009 
PROOF OF PUBLICATION 

NOTICE 

STATE OF CALIFORNIA 

COUNTY OF SAN JOAQUIN 

THE UNDERSIGNED SAYS : 

I am a citizen of the United States 

and a resident of San Joaquin 

County; I am over the age of 18 

years and not a part to or interested 

in the above-entitled matter. I am the 

principal clerk of the printer of THE 

RECORD, a newspaper of general 

publication, printed and published 

daily in the City of Stockton, County 

of San Joaquin and which newspaper 

has been adjudged a newspaper of 

general circulation in the City of 

Stockton and the County of San 

Joaquin by the Superior Court of the 

County of San Joaquin, State of 

California, under the date of 

February 26, 1952, File No. 52857, 

San Joaquin County Records; that 

the notice of which the annexed is a 

printed copy (set in type not smaller 

than nonpareil), has been published 

in each regular and entire issue of 

said newspaper and not in any 

supplement thereof on the following 

dates, 

To wit, Feb.2 

All in the year 2009 

I declare under penalty of perjury 

that the foregoing is true and correct. 

Execute on ~eb.2"~ ,2009 

In Stockton California 

Cop~es of the proposed rule and related documents will 

be made available no later than February 12 2009. To 

obtain co les of the documents please cal~'(559) 230- 

5800 or FAX your request to &em1 Watther at (559) 230-6064 

Comments on the pro osed rule should be addressed 

to Manuel Saltnas SJ~JAPCD 1990 East Ciettysbur Ave Fresno CA b3726 and mhst be received by 5:0% 

p.m.'~ebr~@ j 26 2009 for additi~nal infomatron on the prciposed !ule' contact Mr. Manuel Salinab !3 email 

at manue~sa!mnasbwa~~eyair.ar~ or by phone s&659) 230*5800. - #a8813 212/(19 

Laurie Costello 
........................................................................................................................................................ 

SAN JOAQUIN VALLEY APCD 

ATTN FINANCE DEPARTMENT 

1990 E GETTYSBURG AVE PROOF OF PUBLICATION 

........................................................................................... FRESNO CA 93726 

COUNTY OF FRESNO 

STATE OF CALIFORNIA --- 

PUBLIC NOTICE 

#I72995 

SAN JOAQUIN VALW UNIFIED AIR WLLFION CONTROL DISTRICT 

NOTICE OF PUBLIC HEARING ON 

PROPOSED RULES 4ND REGULATIONS 

NOTICE IS HEREBY GIVEN that a public hearing will be held on 

Morch 19, 2009, 9:00 a.m., or as soon thereafter as may be heard, at 1990 East 

Geitysburg Ave., Fresno, Cal~fornia. The public heortng may also be aftended through 

v~deo teleconferencing at San Jooqu~n Volley Unified Air Pollutcon, Control District's 

(D~str~ct's) reg~onal offtces at 34946 Flyover Court, Bakersfield, Californ~a and at 4800 

Enterprtse Way, Modesto, California. At said hearing, the Dtstrid's Govern~ng Board will 

cons~der amend~ng a rule affecting fhe counties of Fresno, Kern, Kings, Modero, Merced, 

Son Joaqu~n, Stan~slaus, and Tulare. The following action will be cons~dered at sold 

hearing: 

Amend Rule 4902 (Residential Woter Heaten) 

NOTICE IS FURTHER GIVEN that $he adopted rule will be submitted through the 

Cal~forn~o Air Resources Board to the United States Environmental Protection Agency for 

incorporation as part of the Ccl~fcrnia ~tate~lmplementotion Plan (SIP). The proposed 

adtons would const~tute a SIP revision. 

FPROOFAD 

The undersigned states: 

McClatchy Newspapers in and on all dates herein stated 

was a corporation, and the owner and publisher of The 

Fresno Bee. 

The Fresno Bee is a daily newspaper of general 

circulation now published, and on all-the-dates herein 

stated was published in the City of Fresno, County of 

Fresno, and has been adjudged a newspaper of general 

circulation by the Superior Court of the County of Fresno, 

State of California, under the date of November 22, 1994, 

Action No. 520058-9. 

The undersigned is and on all dates herein mentioned 

was a citizen of the United States, over the age of 

twenty-one years, and is the principal clerk of the printer 

and publisher of said newspaper; and that the notice, a 

copy of which is hereto annexed, marked Exhibit A, hereby 

made a part hereof, was published in The Fresno Bee in 

each issue thereof (in type not smaller than nonpareil), on 

the following dates. 

I certify (or declare) under penalty of perjury that the 

foregoing is true and correct. 

Dated ........... FEBRUARY, ....................... ...2..,1. ,2.,0 0.9 ...................................... 
DECLARATION OF PUBLICATION 

(C.C.P. S2015.5) 

COUNTY OF STAMSLAUS 

STATE OF CALIFORNIA 

I am a citizen of the United States and a resident 

Of the County aforesaid; I am over the age of 

Eighteen years, and not a party to or interested 

In the above entitle matter. I am a printer and 

Principal clerk of the publisher 

of THE MODESTO BEE, printed in the City 

of MODESTO, County of STANISLAUS, 

State of California, daily, for which said 

newspaper has been adjudged a newspaper of 

general circulation by the Superior Court of the 

County of STANISLAUS, State of California, 

Under the date of February 25, 1951, Action 

No. 46453; that the notice of which the annexed is 

a printed copy, has been published in each issue 

thereof on the following dates, to wit: 

FEBRUARY 2,2009 

I certify (or declare) under penalty of perjury 

That the foregoing is true and correct and that 

This declaration was executed at 

MODESTB, California on 

&,*i ---- 

BAN JOAQUlN VALLEY UNIFIED AIR 

POLLUTION CONTROL --- BICTRIPY ..-. NOTICE OF PUBLIC HEARING ON 

PROPOSED RULES AND REGULATIONS 

--. NOTICE IS HEREBY GiVEN that a pub- 

!it 9esrin3 will be held on March 19, 2009,9:00 

a.m., 01' as soon thereafter as rnay he heard, at 

1990 East Gettvsbure Ave., Fresno, California. 

The Pubiic hearing may also be attended 

throl~sh video teleconferencing at San Joaquin 

ValleY Unified Air Pollution Control District's 

(District's) regional offices at 34946 Flyover 

Court, Bakersfield, California and at 4800 Enterprise Way, Modesto, California. At said 

hearjns, the District's Governing Board will 

cons~der amending a rule affecting the counties of Fresno, Kern, Kings, Madera. Merced, 

San Joaquin, Stanislous, and Tulare. The following action will be considered at said hear. 

ins: 

Amend Rule 4902 (Residential Water Heaters) 

NGTICE IS FURTHER GIVEN that the 

adopted rule will besubmitted through the California Air Resources Board to the United 

States Environmental Proteciioll Agency for 

incorporation as part of the California State 

Implementation Plan (SIP). The proposed actions would constitute a SIP revision. 

NOTICE IS FURTHER GIVEN that, pursuant to California Health and Safety Code Section 40727.2, District staff has prepared a rule 

consistency analysis for Proposed Rule 4902 

that compares the elements of the proposed 

rule with the corresponding elements of other 

District and federal regulations and guidelines 

that apply to the same type of equipment or 

source categories. 

NOTICE IS FURTHER GlVElV that all 

interested persons desiring to be heard or to 

present evidence on said matters may appear 

at said hearing. Interested persons may view 

the proposed rule at the District offices at 1990 

Eost Gettysburg Avenue in Fresno, 34946 Flyover Court in Bakersfield, and 4800 Enterprise 

Way in Modesto, as well as on-line at: 

www.valleyair.ors/workshO~s/~~~blic~worksho~s 

_idx.htm 

Copies of the proposed rule and related 

documents will be made available no later than 

February 12,2009. To obtain copies of the documents, please call (559) 230-5800, or FAX your 

request to Noemi Walther at (559) 230-6064. 

Comments on the proposed rule should be 

addressed to Manuel Salinas, SJYUAPCD, 1990 

Eost Gettvsburg Ave., Fresno, CA 93726 and 

must be received by 5:OQ P.m. February 26, 

2009. For additional information on the proposed rule, contact Mr. Manuel Salinas by 

email at manuel.salinas@volle~air.ors or by 

phone at (559) 230-5800. 

FEBRUARY 2, 2009 - - 

(Signature) 
Visalia Newspapers, Inc. 

P 0, Box 31, V~salra, CA 93279 

559-735-3200 / Fax 559-735-321 0 "- ;-&#gig~ Certificate of Publication 2% @ 4 &@$ 

State Of California ss: 

County of Tulare 

Advertiser: SAN JOAQUIN VALLEY AIR POLLUTI 

1990 E GETTYSBURG AVE 

FRESNO , CA 937261 

SAN JOAQUlN VALLEY 

UNIFIED AIR POLLUnON 

CONTROL DISTRICT I NOTICE OF PUBLIC 

HEARING ON PROPOSED 

RULES AND REGULATIONS 

bd~ .t , YEREBY ($/EN 

that a publ~c hearing w~ll be 

held on March 19,2009,90~ 

am, or as soon thereafter RE: SAN JOAQUlN VALLEY UNIFIED AIR POLLUTION as may be heard, at 1990 

East Gettysburg Ave, Fres- no California The public 

hearln~ may alsobe attend- 1, Lora Daniels, Accounting Clerk, for the below mentioned 

ed through vrdeo 

telecovferencng at Sari newspaper(s), am over the age of 18 years old, a citizen of the 

doaquln Valley Un~fied Air POIIU~IO~ Control ~,~~~f~ United States and not a party to, or have interest in this matter. I 

iDistrlct sl regional offices at 3946 F~~~.~ coun Ba. hereby certify that the attached advertisement appeared in said 

kersfleld Cal~fornia and at 

4800 Enterpr~se Way, Modesto, Cailfornia At said 

nearlng, the District's GOVerning Board will consider 

amendlng a rule affecting Newspaper: Visalia Times-Delta 

the countles of Fresno, 

Kern Klvgs, Madera, 

Merced, San Joaquin, Stanlsiaus and Turare The 2/2/2009 

foliowlny action will be 

considered at sa~d hearing 

I acknowledge that I am a principal clerk of said paper which is 

printed and published in the City of Visalia, County of Tulare, State 

of California. The Visalia Times Delta was adjudicated a newspaper 

of general circulation on July 25, 2001 by Tulare County Superior 

Court Order No. 41-20576. The Tulare Advance Register was 

adjudicated a newspaper of general circulation on July 25, 2001 by 

Superior Court Order No. 52-43225. 

I declare under penalty o 

correct. Executed on this 

Amend Rule 4902 

lRes8dental Water Heaters) 

NOTICE IS FURTHER GIVEN 

that the adapted rule will be 

subm~tted through the Calrforn~a Air Resources Board 

to the Unlted States ~nu;- ' .oriiiii-ta' ?ioiec+ion Agency ior nL3r,Joraticil as part 

of the Cal~forn~a State lmplementatlon Plan (SIP)- 

The proposed actions 

would conslltute a SIP revp 

sion 

NOTICt IS FURTHER GIVEN 

that, pursuant to Californ~a 

Health and Safety Code 

Sect~on 40727 2, O~strict 

stapf has prepared a rule 

consistency andiysis for 

Proposed Rule 4902 that 

compares the elements of 

the proposed rule with the 

correspond~ng elements of 

other D~strrct and federal 

in Visalia, California. 

' 

regulat~ons and gu~delines 

that apply ro the same type 

of equipment or source categories 

NOTICE IS FURTHER GIVEN 

that all interested persons 

desiring to be heard or to 

present evidence on said 

matters (nay appear at sa~d 

hearing Interested persons may view the proposed rule at the District offices at 1990 East Gettysburg Avenue in Fresno, 

34946 Flyover Court In Bakersf~eld, and 4800 Enterprise Way in Modesto as well as on l~ne at I ww !!2Ilo$ 28, nrnl,a n-1 -h- 
I Cop~es of the proposed rule 

l and related dacuments w~ll be made available no later I than February 12,2009 To 

obtaln coplei of the docu- 1 

ments, please call 15591 230- 

5800, or FAXvour reauest to 

mation on the proposed 

rule, contact Mr. Manuel 

Sal~nas by emall at 

manuel.saltnas$valleyair.o 

rg or by phone at (559) 230- 

5800. 

Publish: Feb. FZMIJ4 
PROOF OF PUBLICATION 

The BAKERSFIELD CALIFORNIAN Ad Number: 1 1 19 1276 PO #: 

P.0. BOX 440 Edition: TBC Run Times 1 

BAKERSFIELD, CA 93302 Class Code Legal Notices 

Start Date 2/2/2009 Stop Date 2/2/2009 

SAN JOAQUIN VALLEY A.P.C.D. Billing Lines 56 Inches 336.92 

1990 E GETTYSBURG FRED BATES Totalcost $203.48 Account I SANS 1 

FRESNO, CA 93726 , Billing SAN JOAQUIN VALLEY A.P.C.D. 

r g " gs %$I 0 Address 1990 E GETTYSBURGFRED BATES r-g 8- 's,'s,- $. 

FRESN0,CA 93726 -- Ha- -- g !J 3 tQB? 

Pi, -p$f i; 

STATE OF CALIF0 g .* # 

COUNTY OF KERN Solicitor I.D.: 1,048 

I AM A CITIZEN OF THE UNITED STATES AND A RESIDENT 

OF THE COUNTY AFORESAID: I AM OVER THE AGE OF 

First Text 

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION 

EKHTEEN YEARS, AND NOT A PARTY TO OR NTERESTED 

IN THE ABOVE ENTITLED MATTER. I AM THE ASSISTANT Ad Number I 1 191 276 

PRINCIPAL CLERK OF THE PIUNTER OF THE BAKERSFIELD 

CALIFORNIAN, A NEWSPAPER OF GENERAL 

CIRCULATION, HUNTED AND PUBLISHED DAILY THE 

SAN JOAQUIN VAL1,EY UNIFIED AIR POLLUTION 

CONWOLDISTRICT 

CITY OF BAKERSFIELD COUNTY OF KERN, NOTICE OF PUBLIC HEARING ON pROPOSD RULES AND REGULATlONS 

NOTICE IS WREBY GIVEN that a public hemg willbe 

held 011~arch 19 2009 9 00 a.m .or as soontl~ereaftetas 

may bt'heard, at j990 &st Gettysburg Ave . Fresno. Cab 

fomia The pubk hednnig mag also be attended tbro~gh 

video teleconfermcu~gat San Joaqub~ Valley Unified 

AND WHCH NEWSPAPER HAS BEEN ADJUDGED A Pouution Co~ttrolUiStrict's (Dt~trict's) reglOnal offices at 34946 Ryoyer Court, Bakersfieid, Califorma dlld at 4800 

NI3WSPAPER OF GENERAL CIRCULATION BY THE SUPERIOR Emelpptise Way Modesto, Cahfoi-Nd At sa~dheamg. the ~is~ct's ~~verkg ~aard will cons~der amend~ng arule 1 

COURT OF THE CO affecting the countzes of Fresno Kem. m@. Madera. 

Merced Sari Joaqmn. Staruslaus, afid lukt! Ihe f0nomg ' 

action &I be ronsldered at said heanng I 

THAT THE NOTICE, OF wd ~ule 4902 (Rcsldenhal Water Hedtersi I 

COPY, HAS BEEN PUBL NOT~CH. IS FURTHER GIVEN that the adopted ruledbe I 

&on& the Cahfomia Au Resources Board to the 1 

United States Envlronmcntal Protechon AgW far mcor pmti~~aspartofthc Cahfom State Implementakon Plan 

AND NOT IN ANY SUPPL ism. l3eproposcd achons would conshtute a SIP revlslon 

FOLLOWING DATES, TO NOTIC~IS~~~GIVEN that pursuant to CawHealthand Safety Code Sechon 40727 2. Dlstl'lct staff has 

prepared a rnle consistcnqr dnalysis for Proposed Rule 

4902 thaf compares the elements of the proposed rule with 

the corresponding elements of other Distrlct and federal 

regulations andgutdeber that apply to the same type of 

equipment or source CategO11es 

NOTICE IS PURTfIERGImN that all mtercsted persons 

ALL IN YEAR 2009 

I CERTIFY (OR DECLA 

IXAT THE FOREGOING IS TRUE AND CORRECT. 

de-g tobe heard or toprcsent evidence on sad matters may appear at said hearulg Interested persons may *w 

theproposedde at theD~shfct offices at 1990 East Get- t sbug Avenue io Fresno 34946 Flyover Court in Bakers 

le~, and 4800 ~nter~nFe Way in ~odesto, as well as 

on line at. www valleyair ~rglworkshopaiyubllc~~~orksh~ps~i~ 

cop~es of theproposed rule and nlatrd documents ~nbe 

made avdable no later than Eebruay 12,2009 To obtaru 

copies of the documet~ts.pledse call (5 59) 230 5800, of 

FAXyourrequest to Noemt'cvalther at(S59) 230 6064 

coments~u the rnic should be add~essed to ManqelS&as.SJWAPCD 1990 East GetQ'shg AVe. 

Fresno GA 93 726 analnust be received IJY 5.00 P m Feb 

mary i13 '2009. For add~tlonal inforlndhon on thegro contact Mx Manuel Sbas by emad at manuel salinas@vaUeyair org or by phone at (559) 

230 5800 

Febmary2,2009(11191276) 1 
Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

FINAL DRAFT STAFF REPORT 

March 19, 2009 

Amendments to Rule 4902 (Residential Water Heaters)

 

Prepared by: Manuel Salinas, Air Quality Engineer 

 

Reviewed by: Colette Feldner, Senior Air Quality Specialist 

 Clay Bishop, Air Quality Inspector 

Dan Klevann, Air Quality Engineer 

Joven R. Nazareno, Senior Air Quality Engineer 

 George Heinen, P.E., Supervising Air Quality Engineer 

 Errol Villegas, Planning Manager 

 

I. SUMMARY 

A. Reasons for Rule Development and Implementation 

The San Joaquin Valley Air Basin (SJVAB) is a continuous inter-mountain valley 

comprised of eight counties in the southern portion of the San Joaquin Valley of 

California: Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, Tulare, and the 

Valley portion of Kern. The SJVAB is approximately 250 miles long, averages 80 miles 

wide, and is partially enclosed by the Coast Mountain range on the west, the Tehachapi 

Mountains on the south, and the Sierra Nevada range on the east. These surrounding 

mountains trap pollution. Low wind speeds combined with low-lying inversion layers in 

the winter create a climate conducive to the formation of high particulate matter (PM) 

concentrations. The region’s hot, dry summers are conducive to ozone formation. 

The SJVAB is currently designated as nonattainment for the national ambient air quality 

standard (NAAQS) for particulate matter 2.5 microns in diameter or less (PM2.5) and 

serious nonattainment for the eight-hour ozone NAAQS. Prior to the United States 

Environmental Protection Agency’s (EPA’s) implementation of the eight-hour ozone 

standard, the SJVAB was also classified as an extreme nonattainment area for the onehour ozone NAAQS. Although EPA revoked the one-hour ozone NAAQS, the San 

Joaquin Valley Air Pollution Control District (District) is still required to meet certain 

requirements mandated by the federal Clean Air Act related to the extreme designation. 

In addition to being classified as nonattainment of federal air standards, SJVAB is 

classified as severe nonattainment for the California ozone air quality standard and 

nonattainment for the California air quality standard for particulate matter ten microns in 

diameter or smaller (PM10). 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

2

Since amending Rule 4902 is a control measure in the District’s 2007 Eight-Hour Ozone 

Plan, it is subject to Code of Federal Regulations (CFR), Clean Air Act (CAA), and 

California Health and Safety Code (CH&SC) requirements. This rulemaking project is 

intended to satisfy the attainment goals of the District’s 2007 Eight-Hour Ozone Plan. 

The proposed amendments to Rule 4902 (Residential Water Heaters) will seek to obtain 

as much reduction of oxides of nitrogen (NOx) from residential water heaters as 

expeditiously practicable, technologically feasible, and economically reasonable, as 

determined by the District’s Governing Board. Furthermore, the rule is intended to 

satisfy the requirements identified in Table 1 below. 

Table 1: Ozone Plan Commitments 

Subject Reference Requirement 

Timeline CAA Section 

172(c)(1) 

Ozone attainment plans shall implement 

control measures as expeditiously as 

practicable, and provide for attainment. 

RACT 

CAA Sections 

182(b)(2) and 

182(f) 

Ozone attainment plans shall assure that 

reasonable available control technology 

(RACT) for NOx and volatile organic 

compounds (VOC) is in use at sources and 

on source categories at or above the RACT 

threshold. 

BARCT CH&SC 

40919(a)(3) 

Ozone attainment plans should provide for 

best available retrofit technology (BARCT) 

for existing permitted sources. 

All Feasible Controls CH&SC 

40914(b)(2) 

Ozone attainment plans should include "all 

feasible control measures." 

Deadline 

District 2007 

Eight-Hour 

Ozone Plan 

Rule adoption by the first quarter of 2009. 

Reductions 

District 2007 

Eight-Hour 

Ozone Plan 

The plan commits to 0.85 tons per day of 

NOx reductions. 

The terms "RACT," "BACT," and "LAER" are acronyms for different program 

requirements under the NSR program. EPA defines RACT as “the lowest emission 

limitation that a particular source is capable of meeting by the application of control 

technology that is reasonably available considering technological and economic 

feasibility.” RACT is required on existing sources in non-attainment areas. Best 

Available Control Technology (BACT), is required on major new or modified sources in 

attainment areas. Lowest Achievable Emission Rate (LAER) is required on major new 

or modified sources in non-attainment areas. BACT and LAER (and sometimes RACT) 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

3

are determined on a case-by-case basis, usually by State or local permitting agencies. 

For this rule project, District staff will focus on RACT limits, as defined by EPA’s NSR 

rule, and BARCT limits as defined by the CH&SC. 

B. Description of the Project 

The District’s Governing Board adopted Rule 4902 (Residential Water Heaters) on June 

17, 1993. District staff would amend Rule 4902 to implement an emission control 

measure (S-COM-9) in the District’s 2007 Eight-Hour Ozone Plan. The control measure 

indicates that NOx emission reductions could be achieved by lowering the NOx 

emission limit from those adopted in 1993. 

As guidelines for developing the proposed changes to Rule 4902, District staff studied 

rules from other air districts within and outside of California. Lower NOx limits are 

already in place in the following rules: 

• South Coast Air Quality Management District (SCAQMD) Rule 1121 (Control of 

Nitrogen Oxides From Residential Type, Natural Gas-Fired Water Heaters) 

(Amended September 3, 2004) and Rule 1146.2 (Emissions of Oxides of 

Nitrogen From Large Water Heaters and Small Boilers and Process Heaters) 

(Amended May 5,2006), and 

• Bay Area Air Quality (BAAQMD) Regulation 9 Rule 6 (Nitrogen Oxides Emissions 

From Natural Gas-Fired Boilers And Water Heaters) (Amended November 7, 

2007). 

Rule 4902 is a point-of-sale type of rule and the source category affected would include 

water heater manufacturers, plumbing wholesalers, retail home supply stores, plumbers 

and contractors, and homeowners. 

C. Rule Development Process 

The District’s 2007 Eight-Hour Ozone Plan identified Rule 4902 as control measure SCOM-9 which would be implemented through the rule development process. As part of 

the rule development process, District staff conducted public workshops in November 

2008 and January 2009 to present and discuss proposed amendments to Rule 4902. 

At the workshops, District staff presented the objectives of the proposed rulemaking 

project and provided draft amendments. District staff solicited information from affected 

source operators, consultants, vendors and manufacturers of control technologies, and 

trade associations on the technological feasibility and compliance cost information that 

would be useful in developing amendments to Rule 4902. 

The comments received from the public, affected sources, interested parties, California Air 

Resources Board (ARB), and EPA, during the public workshop process have been 

incorporated into the draft rule as appropriate. Comments received and District staff 

responses are presented in Appendix A of this report. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

4

Pursuant to state law, the District is required to perform a socioeconomic impact 

analysis prior to adoption, amendment, or repeal of a rule that has significant air quality 

benefits or that will strengthen emission limitations. As part of the District 

socioeconomic analysis process, District staff requested volunteers from affected 

stakeholders and interested parties to participate as members of the Socioeconomic 

Focus Group. District staff convened a meeting of the Focus Group in conjunction with 

the first workshop held in November 2008 to assist District staff in gathering information 

on regulatory compliance costs and business impacts resulting from compliance with 

the proposed amendments. The result of the socioeconomic analysis was published in 

a report and presented along with the proposed rule amendments to the public and 

interested parties during the final workshop. The analysis can be found in Appendix D. 

Based on this analysis, no significant impact is expected from this rule. 

The proposed rule, final draft staff report with appendices, and final draft socioeconomic 

analysis report will be published and mailed to affected sources and interested parties 

prior to a public hearing to consider the adoption of proposed amendments to Rule 4902 

by the District Governing Board. The notice of the public hearing for the proposed rule 

will be published in a general circulation newspaper in each of the eight San Joaquin 

Valley counties and will be mailed to affected sources, interested parties, the public, 

EPA and ARB. The public notice will solicit written comments to be submitted by mail, 

and it also will identify the name and telephone number of the District staff who can 

answer questions and respond to comments. The public hearing is scheduled for 

March 19, 2009. 

II. CURRENT AND PROPOSED REGULATIONS 

A. Existing Rule 4902 

Rule 4902 (Residential Water Heaters) was adopted June 17, 1993 and has not been 

amended since that time. The purpose of Rule 4902 is to limit NOx emissions from 

residential water heaters. The rule applies to gas-fired water heaters that are less than 

or equal to 75,000 Btu per hour. Water heaters that are greater than 75,000 Btu/hr, or 

used exclusively in recreational vehicles, or use other than natural gas, or that are used 

exclusively to heat swimming pools or hot tubs are exempt from the rule. 

The rule requires that no person sell, install, or offer for sale within the District any 

natural gas-fired water heater manufactured after December 17, 1993 that emits more 

than 40 nanograms of NOx calculated as NO2 per Joule of heat output. The rule also 

requires subject water heaters to be certified as meeting that limit. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

5

B. Summary of Draft Amendments to Rule 4902 

Section 2.0 (Applicability): This section would be modified to add clarity to the rule. 

Section 3.0 (Definitions): A definition of “California Public Utilities Commission (PUC) 

Quality Natural Gas” would be added to the rule to make Rule 4902 uniform with other 

District rules. Other definitions added to the rule include Air Pollution Control Officer, 

instantaneous water heater, mobile home water heater, and pool heater. 

Section 4.0 – Exemptions: The exemption for water heaters used exclusively to heat 

swimming pools or hot tubs would be deleted, thereby making such units subject to the 

emission limits of the rule. Though these units typically are low use their emissions tend to 

be higher than low-NOx types of water heaters. Removing this exemption will make Rule 

4902 similar to South Coast AQMD Rule 1146.2, which applies to this type of units. 

Section 5.0 – Requirements: This section has been modified to address the distinct 

types of water heaters and includes the required NOx limit and compliance deadline. 

• On and after January 1, 2010, pool heaters, currently exempt, will be required to 

meet the 40 nanograms of NOx per joule of heat output limit which is 

technologically achievable. 

• On and after January 1, 2012, instantaneous water heaters will be required to 

meet a limit of 14 nanograms of NOx per joule of heat output. 

• Mobile home water heaters will remain at the technologically achievable limit of 40 

nanograms of NOx per joule of heat output. 

• On and after January 1, 2010, all other water heaters will be required to meet a 

NOx limit of 10 nanograms of NOx per joule of heat output. 

Section 6.0 – Administrative Requirements: This section would be restructured by 

changing section numbers and restructuring the rule language to make Rule 4902 similar, 

in format, to other District rules. Section 6.1 has been modified requiring “certification 

status” to be displayed on the water heater shipping carton and rating plate of each unit. 

III. CURRENT EMISSIONS AND EMISSIONS REDUCTION 

The District’s 2007 Eight-Hour Ozone Plan states, for this source category, that the current 

emissions are approximately 1.3 tons of NOx per day which is approximately 474.5 tons of 

NOx per year. The projected reductions, with the recommended changes, would total 

approximately 0.85 tons of NOx per day or 310.25 tons of NOx per year. 

Further calculations show that the number of natural gas water heaters is approximately 

1,020,836 units. With a 75% reduction in emissions from 955,066 of the affected units the 

total reductions would be 386 tons of NOx per year. District staff’s emissions reduction 

analysis is shown in Appendix B of this report. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

6

IV. NOx CONTROL TECHNOLOGIES 

Typically residential water heaters represent the third largest energy end use in the home. 

There are several types of water heaters including conventional storage water heaters, 

demand water heaters, heat pump water heaters, solar water heaters, and tankless coil 

and indirect water heaters. Water heater options also vary by fuel type which includes 

electricity, fuel oil, geothermal energy, natural gas, propane, and solar energy. 

As stated previously, Rule 4902 only regulates PUC quality natural gas fired water 

heaters. Conventional storage water heaters are the most common. The U.S. 

Department of Energy states that almost all water heaters sold in the U.S. are storage 

water heaters. They have an insulated tank sized from 20 to 80 gallons and natural gas 

fired units have a gas burner under the tank regulated by a thermostat. 

Demand water heaters, also known as instantaneous, heat water as it is required and do 

not use a storage tank. As soon as there is a demand for hot water a gas burner heats 

cold water as it travels through a pipe in the unit. Natural gas fired units provide hot water 

at a rate upwards of 5 gallons per minute. 

A tankless coil water heater heats water flowing through a heat exchanger installed in a 

furnace or boiler. Similar to the tankless coil water heater an indirect water heater uses 

a furnace or boiler. Fluid heated by the furnace or boiler is circulated through a heat 

exchanger in a storage tank. 

Manufacturers have focused on combustion modification to meet the lower NOx limit as 

required in other California air districts. Combustion modification systems are designed to 

reduce thermal NOx formation by changing the flame characteristics to reduce peak flame 

temperature. Combustion modification for residential water heaters is achieved by 

different burner designs such as Low NOx and Ultra Low NOx burners. Some of the 

design principles used in Ultra low NOx and Low NOx burner include staged air burners, 

staged fuel burners, pre-mix burners, internal recirculation, and radiant burners. Burner 

design technology incorporated radiant burners with a premix of air and fuel to provide an 

even distribution of heat combustion to lower NOx emissions. 

V. COST EFFECTIVENESS ANALYSIS 

CH&SC Section 40920.6(a), requires the District to analyze the cost effectiveness of 

new rules or rule amendments that implement Best Available Retrofit Control 

Technology (BARCT) or all feasible measure. The cost effectiveness, of the reference 

draft NOx limit in SCAQMD Rule 1121, is listed by the ARB at $4,400 to $16,000 (based 

on 2005 cost data) per ton reduced. District staff believe that the costs associated with 

developing an ultra-low NOx water heater has already been absorbed by manufacturers 

due to complying with other district rules. District staff calculated the cost effectiveness 

to be approximately $20,000/ton. This amount is based on an increased cost of $50 per 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

7

boiler and reduced emissions of 0.81 lb per year per boiler. The cost effectiveness 

analysis is shown in Appendix C. 

VI. SOCIOECONOMIC ANALYSIS 

CH&SC Section 40728.5(a) requires the District to perform an assessment of the 

socioeconomic impacts of the adoption, amendment, or repeal of a rule or regulation 

that will significantly affect air quality or emission limitations. The result of the 

socioeconomic analysis was used to further refine the rule amendments as appropriate. 

The socioeconomic report was published as part of the staff report, and was presented 

to the public at the final rule workshop. Based on this analysis, the rule is not expected 

to have a significant impact on the affected sources. The final draft socioeconomic 

report will be presented to the District Governing Board, at a public hearing for adopting 

amendments to the rule. The socioeconomic analysis is shown in Appendix D. 

VII. ENVIRONMENTAL IMPACTS 

Pursuant to the California Environmental Quality Act (CEQA), District staff investigated the 

likely environmental impacts of the proposed rule amendments. Based on the lack of 

evidence to the contrary, District staff concluded that the proposed amendments will not 

have any significant adverse effects on the environment. Staff recommend filing a Notice 

of Exemption under the provisions of Public Resource Code 15061 (b)(3). 

VIII. RULE CONSISTENCY ANALYSIS 

Pursuant to CH&SC Section 40272.2, District staff prepared a rule consistency analysis

that compares the elements of proposed rule amendments with the corresponding 

elements of other District rules, federal regulations and guidelines that apply to the 

same source category or type of equipment. The proposed rule is consistent with the 

applicable rules. The rule consistency analysis is shown in Appendix E. 

IX. REFERENCES 

1. San Joaquin Valley Unified Air Pollution Control District 2007 Ozone Plan, April 30, 

2007. 

2. Federal Clean Air Act, Amended 1990. 

3. San Joaquin Valley Unified Air Pollution Control District, Rules and Regulations. 

4. South Coast AQMD Rule 1121. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Final Draft Staff Report for Amendments to Rule 4902 March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

8

5. South Coast AQMD Rule 1121 Staff Report. 

6. Sheth, Atul and Tom Giel. “Understanding the PM-2.5 Problem.” Pollution 

Engineering On-line. March 2000. 

7. Department of Energy. “Energy Star® Residential Water Heaters: Final Criteria 

Analysis”. April 1, 2008. 

8. Bay Area AQMD Regulation 9 Rule 6. 

9. Bay Area AQMD Regulation 9 Rule 6 Staff Report. 

10. Residential Energy Consumption Survey (RECS) data from 2005. 
STATE OF CALIFORNIA 

ENVIRONMENTAL PROTECTION AGENCY

AIR RESOURCES BOARD 

P. O. Box 2815 

Sacramento, California 95812 

March 5, 2009 

ARB Staff Rule Review Results 

To: Manuel Salinas 

San Joaquin Valley Unified Air Pollution Control District 

Telephone Number: (559) 230-5833 

E-mail: manuel.salinas@valleyair.org 

From: Ava Yaghoobirad, (916) 327-5603 

E-mail: ayaghoob@arb.ca.gov 

The following proposed rule, which is scheduled for hearing to be held by your District 

staff on March 19, 2009, was received by us on February 11, 2009, for our review: 

Rule 4902 Residential Water Heaters 

The Air Resources Board staff has reviewed the rule and, based on the information 

available to us at this time, we have no comments. 

The rule was examined by the Stationary Source Division, but not by the Enforcement 

Division. 

 

If you have any questions, please contact me by e-mail or at the telephone number 

above. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix A: Comments and Responses March 19, 2009 

 A - 1 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

APPENDIX A 

COMMENTS AND RESPONSES FOR RULE 4902 

(RESIDENTIAL WATER HEATERS) 

March 19, 2009 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix A: Comments and Responses March 19, 2009 

 A - 2 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

SUMMARY OF COMMENTS AND RESPONSES 

FOR RULE 4902 (RESIDENTIAL WATER HEATERS) DRAFT DATED 

FEBRUARY 19, 2009 

EPA Comments: 

No comments were received. 

ARB Comments: 

ARB reviewed the rule and, based on the information available to at the time of receipt, 

had no comments. 

Industry Comments: 

No comments were received. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 1

APPENDIX B 

Emissions Reduction Analysis For 

Rule 4902 (Residential Water Heaters) 

March 19, 2009 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 2

I. Summary

Rule 4902 applies to residential natural gas fired water heaters. Emission reductions 

for Rule 4902 would come from the replacement of older units operating currently at a 

NOx emission limit of 40 nanograms (calculated as NO2) per joule of heat output (93 lb 

per billion Btu of heat output) with new units that meet the proposed limits. As reported 

in the September 2007, Bay Area Air Quality Management District Regulation 9, Rule 6 

staff report, the average useful life of a residential water heater is approximately 12 

years and the average water heater produces 1.08 lb/year of NOx. New units would 

emit 75% less NOx. 

Rule 4902 would require that no units be sold, installed, or offered for sale in the District 

unless they met a NOx limit of: 

• 40 nanograms (calculated as NO2) per joule of heat output for mobile home 

water heaters effective currently. 

• 40 nanograms (calculated as NO2) per joule of heat output for pool heaters 

effective on and after January 1, 2010. 

• 10 nanograms (calculated as NO2) per joule of heat output for all water heaters 

excluding mobile home water heaters, instantaneous water heaters, and pool 

heaters effective on and after January 1, 2010. 

• 14 nanograms (calculated as NO2) per joule of heat output for instantaneous 

water heaters effective on and after January 1, 2012. 

II. Current Emissions from Affected Units 

In the 2007 Ozone Plan, Appendix I, page Appendix I – 28 notes that NOx emissions 

from sources subject to the Residential Water Heaters control measure is estimated to 

be 1.37 tons per day in 2005. 

Current emissions were calculated in this analysis utilizing information obtained from 

District consultant Applied Development Economics (ADE) and the Energy Information 

Administration. Specifically the total number of housing units was obtained from ADE 

data generated during development of District Rule 4901 (Wood Burning Fireplaces 

And Wood Burning Heaters). Information from the Energy Information Administration 

was also used to identify the state average of natural gas fired residential water heaters 

as compared to other types of fuel. 

Current emissions or emission reductions were not calculated for instantaneous water 

heaters because the information was not available from the Energy Information 

Administration. The Energy Information Administration reported that the data was 

withheld either because the Relative Standard Error was greater than 50 percent since 

fewer than 10 households were sampled. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 3

Based on this data, the calculated current emissions are 515 tons per year or 1.41 tons 

per day, as shown in Table 1. 

 III. Adjusted Emissions Reduction for Rule 4902 

As stated in the 2007 Ozone Plan, upon final implementation of the Residential Water 

Heaters control measure, 0.85 tons per day of NOx reductions from a planning baseline 

of 1.37 tons NOx/day was anticipated. As calculated in this analysis and shown in 

Table 1, current NOx emissions from the affected units are estimated to be 1.41 tons 

per day. The proposed rule would achieve NOx emissions reduction of 1.06 tons per 

day from that baseline. To determine if the planning reduction was met, the estimated 

percent reduction will be applied to the planning baseline as follows: 

Percent Reduction = (Calculated NOx Emissions Reduction ÷ 

 Estimated Current NOx Emissions) x 100% 

Percent Reduction = (1.06 tons per day ÷ 1.41 tons per day) x 100% 

 = 75.2% 

Amount NOx Reduced = 2005 Baseline NOx Emission Inventory x 

from Planning Baseline Percent Reduction /100 

2005 Baseline Emissions = 1.37 tons per day 

Amount NOx Reduced = 1.37 tons per day x 75.2% / 100 

From Planning Baseline = 1.03 tons/day 

Therefore the proposed control measure satisfies the plan commitment of 0.85 tons/day 

since it results in an adjusted emission reduction of 1.03 tons/day from the planning 

baseline. 

III. Calculations 

As shown in Table 1 the number of estimated housing units in the District is 1,199,290. 

 Assuming that each housing unit has at least one residential water heater gives a 

potential of 1,199,290 water heaters. Since Rule 4902 only applies to natural gas fired 

water heaters District staff used the Energy Information Administration’s breakdown of 

water heater fuel types. 

1. Of the total number of water heaters in the District approximately 85.12% are 

natural gas fired: 

(0.8512 X 1,199,290 = 1,020,836 natural gas fired water heaters) 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 4

• Out of the 1,020,836 natural gas fired units, 64,292 are mobile home units. 

Mobile home water heaters will remain at the current limit of 40 nanograms 

(calculated as NO2) per joule of heat output and therefore do not contribute to 

the emission reductions. 

• There are also 1,478 housing units including boats, recreational vehicles (RV), or 

vans excluded from the rule and therefore emission reductions. 

• Pool heaters were previously exempt from Rule 4902. Current emissions or 

reductions are not included because generally pool heaters are sized greater 

than 75,000 Btu/hr. It is possible that there are a small percentage of units in 

this size range and they would be replaced with units that meet the 40 

nanograms (calculated as NO2) per joule of heat output limit. 

2. Applicable units would equal the 1,020,836 units after subtracting out the mobile 

home units and exempt units: 

(1,020,836 – 64,292 – 1,478 = 955,066 applicable units) 

3. Current emissions from the applicable units would equal the number of units 

multiplied by an emissions factor: 

(955,066 units X 1.08 lbs/yr/units X 1 ton/2000lb = 515 tons per year) 

(515 tons per year / 365 days/yr = 1.41 tons per day) 

4. The change in limits from 40 nanograms to 10 nanograms (calculated as NO2) 

per joule of heat output represents a 75% reduction. The emissions reduction 

would equal a 75% reduction from the current emissions: 

(0.75 X 515 tons per year = 386 tons per year) 

(386 tons per year / 365 days/year = 1.06 tons per day) 

Emissions and emission reductions are calculated below for the units subject to Rule 

4902. Table 1 summarizes the basis and results of those calculations. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 5

Table 1- Calculated Emissions Reduction 

 

 Housing UnitsA

 

SJVAPCD 1,199,290 

 

Fuel Type Percent by FuelB Water Heaters 

Electric 10.74% 128,804

Natural Gas 85.12% 1,020,836

Propane/LPG 4.13% 49,531

Other 0.01% 120

 100.00% 1,199,290

 

Natural Gas Units 1,020,836

Mobile Home Units (64,292)

Boat, RV, Van (1,478)

Total Units 955,066

 

NOx Reductions = 386 tons/year 

(955,066 units X 1.08 lb/yr/unit X 1/2000 ton/lb) = 515 tpy current emissions 

(515 tpy X 0.75 reduction) = 386 tpy emissions reduction 

A

Source: Applied Development Economics, based on California Department of 

Finance

B

Energy Information Administration, 2005 Residential Energy Consumption Survey
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix B: Emissions Reduction Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

B - 6

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SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix C: Cost Effectiveness Analysis March 19, 2009

 C - 1 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

APPENDIX C 

Cost Effectiveness Analysis for 

Rule 4902 (Residential Water Heaters) 

March 19, 2009 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix C: Cost Effectiveness Analysis March 19, 2009 

 C - 2 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

I. INTRODUCTION 

The California Health and Safety Code 40920.6(a) requires the San Joaquin Valley 

Unified Air Pollution Control District to conduct both an "absolute" cost effectiveness 

analysis and an incremental cost effectiveness analysis of available emission control 

options prior to adopting each Best Available Retrofit Control Technology (BARCT) rule. 

The purpose of conducting a cost effectiveness analysis is to evaluate the economic 

reasonableness of the pollution control measure or rule. The analysis also serves as a 

guideline in developing the control requirements of a rule. 

Rule 4902 applies to residential natural gas fired water heaters. Amendments to Rule 

4902 would require that no natural gas fired residential water heater be sold, installed, 

or offered for sale unless it met a NOx limit of 10 nanograms of NOx (calculated as NO2) 

per joule of heat output (23 lb per billion Btu of heat output). This NOx limit represents 

a 75% reduction from the current limit. 

District staff analyzed the absolute cost effectiveness of Draft Rule 4902 based on 

replacing an existing residential water heater, at the end of its useful life, with a new 

heater that meets the proposed 10 nanograms NOx unit. 

II. SUMMARY AND CONCLUSION 

A. Absolute Cost Effectiveness Analysis 

Absolute cost effectiveness of a control option is the added annual cost (in $/year) of a 

control technology or technique, divided by the emission reduction achieved (in tons 

reduced/year). The costs typically include capital equipment costs, engineering design 

costs, labor and maintenance costs. 

The estimated absolute cost effectiveness for this analysis is $20,086 per ton. The 

calculation is shown in Table 1. It is important to note that the actual increased cost of 

the new boilers is only $50 per unit and that the cost effectiveness number does not 

reflect an actual cost to the operator. 

 

B. Incremental Cost Effectiveness 

Incremental cost effectiveness (ICE) is intended to measure the change in costs (in 

$/year) and emissions reductions (in tons reduced/year) between two progressively 

more effective control options or technologies. ICE compares the differences in costs 

and the differences in emissions reductions of candidate control options. ICE does not 

reveal the emission reduction potential of the control options. Unlike the absolute cost 

effectiveness analysis that identifies the control option with the greatest emission 

reduction, ICE does not present any correlation between emissions reductions and cost 

effectiveness. Therefore, the relative values produced in the ICE analysis and the 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix C: Cost Effectiveness Analysis March 19, 2009 

 C - 3 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

absolute cost effectiveness values are not comparable and cannot be evaluated 

similarly. 

The District is required to conduct an ICE analysis for BARCT rules or emission 

reduction strategies in accordance with Health and Safety Code Section 40920.6 when 

there is more than one control option. In this case, District staff’s research concluded 

that there is no other technologically and economically feasible control option that is 

more stringent than ultra low NOx burner technology that could meet the proposed 10 

nanograms NOx limit. Other control technology like selective catalytic reduction (SCR), 

and selective noncatalytic reduction (SNCR) are not technologically feasible or 

achieved in practice for residential water heaters. Such technologies reduce NOx

emissions by injecting ammonia in the exhaust gas and require high exhaust gas 

temperature for successful treatment. Water heater exhaust gas temperature is well 

below the required temperature range of SCR or SNCR operation. Since there are no 

other stringent emission control options to compare with ultra low NOx burner 

technology, conducting the ICE analysis is not appropriate. 

 

III. SOURCES OF COST DATA

Preliminary cost information is based on the Bay Area Air Quality Management District 

staff report for Regulation 9 Rule 6 (Nitrogen Oxides Emissions From Natural Gas-Fired 

Boilers And Water Heaters). Staff may refine the analysis if additional cost information 

is received from stakeholders and vendors. 

IV. COST EFFECTIVENESS ANALYSIS PROCEDURE 

A. Cost Effectiveness Analysis Procedure 

In conducting the cost effectiveness analysis of a rule, District staff generally use the 

following procedure: (1) identify typical operating conditions for units affected by the 

rule; (2) identify the control technologies that can achieve the proposed emission limits; 

(3) estimate the average annualized cost of each control option; (4) calculate the 

potential average emissions reduction of a control option; and (5) calculate the absolute 

cost effectiveness of a given equipment setting. 

B. Absolute Cost Effectiveness (ACE) Calculation Method 

The absolute cost effectiveness of a control technology is calculated as follows: 

1. Determine an equivalent annual equipment cost using a capital recovery factor 

based on an assumed interest rate of 10 percent and equipment life of 10 years. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix C: Cost Effectiveness Analysis March 19, 2009 

 C - 4 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

The annualized capital equipment cost is calculated by multiplying the installed 

capital equipment cost by the capital recovery factor of 0.1627. 

$50.00 X 0.1627 = $8.00 

2. If applicable, determine the annual electricity, fuel, and operation and 

maintenance costs of a control technology. 

N/A = $0 

3. Calculate the annual cost. (Add the costs in Step 1 and Step 2). 

$8.00 + $0 = $8.00 

4. Calculate the emission reduction in tons/year (As shown in Appendix B). 

0.81 lb/year = 0.81 lb/year X 1 ton/2000 lb = 0.000405 tons/year 

5. Calculate the absolute cost effectiveness. (Divide the cost in Step 3 by the 

annual emissions reduction of the pollutant in tons/year). 

$8.135 / 0.000405 tons/year = $20,086/ton 

Table 1 Cost Effectiveness Calculation 

Cost1Total Annual 

Cost2

NOx Reduced 

Tons/Year 

CE 

$/ton 

$50 $8 0.000405 $20,086 

NOTES: 

1. Cost equals the additional cost of a new water heater equipped with an Ultra-Low NOx burner 

compared to the cost of a water heater equipped with a Low NOx burner. 

2. The annualized cost is based on 10 years and a 10% annual interest rate. Cost multiplied by 

0.1627 (capital recovery factor). 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 1

APPENDIX D 

Socioeconomic Impact Analysis For 

Rule 4902 (Residential Water Heaters) 

March 19, 2009 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 2

PROPOSED AMENDMENTS TO RULE 4902 

(RESIDENTIAL WATER HEATER): 

SOCIOECONOMIC IMPACT ANALYSIS

JANUARY 7, 2009 

Prepared for 

San Joaquin Valley Air Pollution Control District 

Prepared by 

Applied Development Economics 

100 Pringle Avenue, Suite 560  Walnut Creek, California 94596  (925) 934-8712 

2151 River Plaza Drive, Suite 150  Sacramento, CA 95833  (916) 923-1562 

www.adeusa.com
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 3

CONTENTS 

1. Executive Summary.........................................................................................................................4

2. Description of the Proposed Rule ................................................................................................6

Current Status of the Rule..............................................................................................................6

Proposed Rule Amendments.........................................................................................................6

Emissions Reductions.....................................................................................................................6

3. Impact of Proposed Rule Amendments ......................................................................................7

Methodology ....................................................................................................................................8

Regional Demographic Trends......................................................................................................8

Regional Economic Trends ...........................................................................................................9

Description of Affected Household.............................................................................................11

Household Trends and Impacts....................................................................................................11

Incremental Cost and Impact Analysis: Residential Water Heaters.........................................13
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 4

1. EXECUTIVE SUMMARY 

The San Joaquin Valley Unified Air Pollution Control District (“District”) adopted Rule 4902 

(Residential Water Heaters) on June 17, 1993. District staff seeks to amend Rule 4902 to implement 

an emission control measure (S-COM-9) in the District’s 2007 Eight-Hour Ozone Plan. As 

guidelines for developing the proposed changes to Rule 4902, District staff studied rules from other 

air districts within and outside of California. Lower NOx limits are already in place in the following

rules; South Coast Air Quality Management District (SCAQMD) Rule 1121 (Control of Nitrogen 

Oxides From Residential Type, Natural Gas-Fired Water Heaters) (Amended September 3, 2004) 

and Rule 1146.2 (Emissions of Oxides of Nitrogen From Large Water Heaters and Small Boilers 

and Process Heaters) (Amended May 5,2006), and Bay Area Air Quality (BAAQMD) Regulation 9 

Rule 6 (Nitrogen Oxides Emissions From Natural Gas-Fired Boilers And Water Heaters) (Amended 

November 7, 2007). Rule 4902 is a point of sale type rule and the source category affected would 

include water heater manufacturers, plumbing wholesalers, retail home supply stores, plumbers and 

contractors, and homeowners. 

This socioeconomic analysis report is based on the November 25, 2008 draft of Rule 4902. 

According to District staff, the incremental cost of new water heaters is approximately $50 (or $8 on 

an annualized basis) for housing of a variety of sizes, from single-family units to small-to-large multifamily units. Impacts to households are less than significant. The socioeconomic analysis shows that 

incremental costs for residential new water heaters are a small fraction of what households typically 

spend every year on “miscellaneous household equipment and large appliances” and what they 

spend on retail and services in general. In addition, the analysis concludes by saying that small 

businesses are not disproportionately impacted by the proposed amendments to Rule 4902. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 5

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SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 6

2. DESCRIPTION OF THE PROPOSED RULE 

CURRENT STATUS OF THE RULE 

Rule 4902 (Residential Water Heaters) was adopted June 17, 1993 and has not been amended. The 

purpose of Rule 4902 is to limit NOx

 x 

emissions from residential water heaters. The rule applies to 

gas-fired water heaters that are less than or equal to 75,000 Btu per hour. Water heaters that are 

greater than 75,000 Btu/hr, or used exclusively in recreational vehicles, or use other than natural gas, 

or that are used exclusively to heat swimming pools or hot tubs are exempt from the rule. 

The rule requires that no person sell, install, or offer for sale within the District any natural gas-fired 

water heater manufactured after December 17, 1993 that emits more than 40 nanograms of NOx

calculated as NO2 per Joule of heat output. The rule also requires subject water heaters to be 

certified. 

PROPOSED RULE AMENDMENTS 

Section 2.0 (Applicability): This section would be modified to add clarity to the rule. 

Section 3.0 (Definitions): A definition of “California Public Utilities Commission (PUC) Quality 

Natural Gas” would be added to the rule to make Rule 4902 uniform with other District rules. 

Section 4.0 – Exemptions: The exemption for water heaters used exclusively to heat swimming 

pools or hot tubs would be deleted thereby making such units subject to the emission limits of the 

rule. Though these units typically are low use their emissions tend to be higher than low- NOx

 x 

types of water heaters. Removing this exemption will make Rule 4902 similar to South Coast 

AQMD Rule 1146.2 which applies to this type of units. 

Section 5.0 – Requirements: This section has been modified to include a table of NOx

 x 

limits with 

effective compliance deadlines. On and after December 31, 2009, all water heaters will be required 

to meet a NOx

 x 

limit of 10 nanograms of NOx

 x 

per joule of heat output. 

Section 6.0 – Administrative Requirements: This section would be restructured by changing 

Section numbers and restructuring the rule language to make Rule 4902 similar, in format, to other 

District rules. 

EMISSIONS REDUCTIONS 

The District’s 2007 Eight-Hour Ozone Plan states, for this source category, that the 2005 baseline 

emissions are approximately 1.37 tons of NOx per day which is approximately 500 tons of NOx per 

year. The Ozone Plan’s projected reductions, with the recommended changes, would total 

approximately 0.85 tons of NOx per day or 310.25 tons of NOx per year. Further calculations show 

that the number of natural gas water heaters is approximately 1,019,358 units. With a 75% reduction 

from the 2005 baseline emissions the total emission reductions would be 1.12 tons of NOx per day 

or 412 tons of NOx per year. District staff’s preliminary estimate of emissions reduction is shown in 

Appendix B of the Draft Staff Report. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 7

3. IMPACT OF PROPOSED RULE AMENDMENTS 

This section of the socioeconomic analysis describes demographic and economic trends in the San 

Joaquin Valley region. Following an overview of the methodology for the socioeconomic analysis, 

the first part of this section compares the region against California and provides a context for 

understanding demographic and economic changes that have occurred within the San Joaquin Valley 

region between 1997 and 2007. After an overview of industries in the region, we focus on 

households and industries impacted by the proposed amendments to Rule 4902. 

For the purposes of this report, the San Joaquin Valley region is defined as Fresno, Kern (part), 

Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare Counties. The map below depicts the 

eight-county region. 

FIGURE 1 

MAP OF SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Source: ADE, Inc. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 8

METHODOLOGY 

The socioeconomic analysis of the proposed rule amendments concerning nitrogen oxides from 

stationary gas turbines involves the use of information provided directly by the District, as well as 

secondary data used to describe the industries affected by the proposed rule amendments. 

Based on information provided by District staff, ADE determined that the impacts would affect 

households, particularly as they purchase new water heaters. Given the low annual incremental costs 

stemming from the proposed amendment, ADE determined that manufacturers, wholesalers, and 

retailers can pass costs onto the consumers without any significant impacts to themselves. In turn, 

consumers can absorb the costs. The District does not require affected households and residential 

property owners to replace existing water heaters with water heaters that meet Rule 4902 as 

amended. Affected entities will purchase compliant water heaters at the point in time they need to 

replace existing units. For this reason, this report analyzes incremental compliance costs associated 

with amendments to Rule 4902, not the total cost of a new heater. 

With this information we began to collect demographic information of typical households living in 

various housing settings, from owner-occupied single-family homes to renters living in large 

apartment complexes. With respect to impacts on households purchasing new water heaters that 

comply with Rule 4902 as amended, ADE gathered information from US Census, particularly data 

from 2007 American Community Survey (ACS) on households in the eight-county San Joaquin 

Valley region. We also checked data against demographic estimates produced by the California 

Department of Finance. ADE identified typical households in a variety of housing arrangements, 

from households in owner-occupied single-family homes to renters living in large apartment 

complex. ADE identified average household incomes for households in various housing 

arrangements, and, based on this information, calculated annual retail spending in general and 

spending on appliances-and-miscellaneous household equipment. ADE compared incremental cost 

of purchasing new water heaters against spending in general and on household equipment and 

appliance in particular, and made a determination on the significance of the incremental cost. 

REGIONAL DEMOGRAPHIC TRENDS 

The San Joaquin Valley Region experienced significant growth from 1997 to 2007. Between 1997 

and 2002, the eight county region increased by 1.8 percent annually, from 3.1 million in 1997 to 

almost 3.5 million in 2002. From 2002 to 2007, the population grew to 3.9 million for an annual 

increase of approximately 2.5 percent. Over the same period, California grew at a slower rate of 1.4 

percent per year. Kern County, Madera, Merced, and San Joaquin Counties grew at rates faster than 

the regional average between 2002-2007. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 9

TABLE 1 

POPULATION TRENDS: SAN JOAQUIN VALLEY REGION AND CALIFORNIA, 1997-2007 

 ------------------- Year -------------- ------- Change ------- - Annual % Change - 

 1997 2002 2007 97-02 02-07 97-02 02-07 

California 32,670,019 35,088,671 37,662,518 2,418,652 2,573,847 1.4% 1.4% 

Region 3,147,776 3,445,018 3,900,965 297,242 455,947 1.8% 2.5% 

 Fresno 774,208 827,310 917,515 53,102 90,205 1.3% 2.1% 

 Kern 629,227 688,875 801,648 59,648 112,773 1.8% 3.1% 

 Kings 116,727 133,553 151,381 16,826 17,828 2.7% 2.5% 

 Madera 111,892 130,373 148,721 18,481 18,348 3.1% 2.7% 

 Merced 200,169 219,554 251,510 19,385 31,956 1.9% 2.8% 

 San Joaquin 537,669 596,907 679,687 59,238 82,780 2.1% 2.6% 

 Stanislaus 421,946 469,969 521,497 48,023 51,528 2.2% 2.1% 

 Tulare 355,938 378,477 429,006 22,539 50,529 1.2% 2.5% 

Source: ADE, Inc., based on California Department of Finance 

REGIONAL ECONOMIC TRENDS 

Economic development practitioners and planners have traditionally divided economies into two 

broad industrial categories—the economic base and local support industries. Economic base 

industries are the drivers of local and regional economies in that these industries draw income into a

local economy by selling products outside of the local economy, much like the export industries of a 

national economy. Accrued earnings then circulate throughout the local area in the form of wages 

and salaries; investments; purchases of fixed assets, goods, and services; and generation of more jobs

and wealth. 

The economic base is typically comprised of industries within the manufacturing, minerals-resource 

extraction, and agricultural sectors. There are also the “local support industries” such as retail or 

service sectors, the progress of which is a function of the economic base and demographic changes, 

and more so the latter than the former. As population increases in a given area, demand for 

services–such as realtors, teachers, and healthcare–increases, as does demand for basic retail items 

like groceries, gas for commuting, or clothing at the local apparel shops. 

Agriculture is the economic base of the San Joaquin Valley region by virtue of the amount of goods 

this sector produces and exports throughout the nation and the globe. Twelve percent of all workers 

in the region are employed by industries within agriculture, as Table 2 shows. However, in 1997 

slightly almost 16 percent of all workers worked in agriculture. By 2002, this ratio stood at 13 

percent. In fact, over the five-year period between 2002 and 2007, employment in agriculture barely 

increased, growing by 0.2 percent per year. 

Between 2002 and 2007, local support industries gained in prominence within the San Joaquin 

Valley region. Service-rendering industries employed the most workers as a proportion of total 

employment in the region. As Table 2 shows, service-rendering industries comprise 62 percent of all 

jobs, including public sector positions. In other words, 955,079 jobs out of a total of 1,530,284 jobs

are in service-rendering industries. Excluding the public sector, service-rendering jobs account for 

45 percent of all jobs in 2007. In 2002, service-rendering industries (excluding the public sector) 

represented 44 percent of all jobs, early as the mid to late 1990s with the significant increase in the 

number of people during that time. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 10

Increases in employment in service-rendering industries are consistent with regional population 

growth. In the region, local support industries of construction, education and health, and financial 

activities increased annually by 3.9 percent, 3.2 percent, and 1.5 percent respectively between 2002 

and 2007. 

Close examination of Table 2 shows that the region experienced respectable growth in 

manufacturing, as employment in this sector grew annually by 1.2 percent between 2002 and 2007. 

In comparison, manufacturing jobs declined annually by 0.7 percent between 1997 and 2002. 

Another regional bright spot was transportation\utilities, as jobs increased by a healthy clip of 3.2 

percent per year between 2002 and 2007. 

TABLE 2 

EMPLOYMENT PROFILE OF THE SAN JOAQUIN VALLEY REGION, 1997-2007 

Industry 1997 2002 2007 

% of Total 

Private & 

Public 

Employment 

in 2007: 

Region 

% of Total 

Private & 

Public 

Employment 

in 2007: 

California 

Annual 

Percent 

Chg, 

97-02 

Annual 

Percent 

Chg, 

02-07 

Total, all private industries 1,121,188 1,159,334 1,273,164 0.7% 1.9%

 Goods-Producing 581,277 540,028 575,205 -1.5% 1.3% 

 Agriculture 207,186 181,777 183,335 12.0% 2.0% -2.6% 0.2% 

 Natural Resources and Mining 217,333 184,435 197,798 12.9% 2.6% -3.2% 1.4% 

 Construction 43,999 64,992 78,704 5.1% 5.7% 8.1% 3.9% 

 Manufacturing 112,759 108,824 115,368 7.5% 9.3% -0.7% 1.2% 

 Service-Providing 539,911 619,306 697,959 2.8% 2.4% 

 Trade, Trans, and Utilities 189,894 209,335 237,788 2.0% 2.6% 

 Retail 116,765 131,458 145,700 9.5% 10.8% 2.4% 2.1% 

 Wholesale 33,993 37,443 44,832 2.9% 4.6% 2.0% 3.7% 

 Transport\Warehse\Util 39,136 40,434 47,256 3.1% 3.1% 0.7% 3.2% 

 Information 14,485 14,682 15,225 1.0% 3.0% 0.3% 0.7% 

 Financial Activities 40,287 45,345 48,778 3.2% 5.8% 2.4% 1.5% 

 Professional & Business Srvs 81,314 98,203 108,007 7.1% 14.4% 3.8% 1.9% 

 Education and Health Services 96,624 115,521 135,197 8.8% 10.4% 3.6% 3.2% 

 Leisure and Hospitality 79,462 89,736 101,415 6.6% 9.9% 2.5% 2.5% 

 Other Services 37,845 46,484 51,549 3.4% 4.9% 4.2% 2.1% 

Federal Government 26,013 29,186 27,784 1.8% 1.6% 2.3% -1.0% 

State Government 23,886 29,000 30,945 2.0% 2.9% 4.0% 1.3% 

Local Government 155,836 185,774 198,391 13.0% 11.0% 3.6% 1.3% 

Tot, all public and private ind 1,326,923 1,403,294 1,530,284 100.0% 102.0% 1.1% 1.7%

Source: ADE, Inc. from data supplied by the Labor Market Information Division of the California 

Employment Development Department 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 11

DESCRIPTION OF AFFECTED HOUSEHOLD 

Proposed amendments to Rule 4902 potentially affect almost all households in the eight-county 

Central Valley region, in so far as affected households occupy buildings that utilize a water heater in 

one capacity or another. Households living in single-family units to multi-family structures, from 

duplexes to large apartment buildings, are potentially subject to the rule, at the point in time they 

need a new water heater. 

The discussion below analyzes household and demographic trends in greater detail. The discussion 

first examines household trends, including analysis on what proportion of household spending 

incremental costs associated with rule amendments represents. 

Household Trends and Impacts 

As Table 3 shows, there are 1.2 million households in the eight-county region. Of these households, 

543,444 live in owner-occupied housing in which households maintain a mortgage (or 45 percent). 

Approximately 178,114 households live in owner-occupied units with no mortgage payments (15 

percent). Table 3 also shows that there are over 477,732 renting households in the eight-county 

region (45 percent). 

TABLE 3 

HOUSEHOLDS BY HOUSING UNITS IN STRUCTURE AND TENURE

 San Joaquin Valley Region 

 Owner-Occupied Renter-Occupied 

Total Mortgage No Mortgage No Mortgage 

Housing Units in Structure: 1,199,290 543,444 178,114 477,732 

 1, detached or attached 900,596 501,236 164,280 235,080 

 2 to 4 86,553 2,851 934 82,767 

 5 to 9 (small apartment\condo\townhouse) 60,692 672 220 59,800 

 10 to 19 (medium apartments\condo\townhouse) 23,500 267 87 23,147 

 20 or more (large apartments\condo\townhouse) 50,682 904 297 49,481 

 Mobile home 75,531 36,587 11,992 26,952 

 Boat, RV, van, etc. 1,736 927 304 505 

Source: Applied Development Economics, based on US Census American Community Survey 2007 (B25032 and B25098) and 

California Department of Finance (Report E-5) 

Data is broken into three broad categories of “mortgage,” “no mortgage,” and “renters” as incomes 

for households in each of these broad categories typically differ even when adjusted for housing unit 

type (i.e. single-family units, duplex, small apartment, mid-sized apartment, and large apartment). 

Thus, the average household income for households in owner-occupied living situations with a 

mortgage is $85,818 versus $56,984 for households without a mortgage. Because spending on a 

wide variety of goods, including household equipment and large appliances, varies with income, it is 

important to characterize average household incomes as accurately as possible. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 12

Table 4 identifies average household incomes for households living in various housing 

arrangements. At $87,446, the typical household living in single-family units with mortgage 

payments has a higher income than households living in other situations, on average. At 

approximately $30,000, the typical household that rents in apartment complexes with at least 10 

units has the lowest incomes, on average. 

TABLE 4 

AVG. HOUSEHOLD INCOME BY HOUSING UNITS IN STRUCTURE AND TENURE 

 San Joaquin Valley Region 

 Owner-Occupied Renter-Occupied 

All Households Mortgage No Mortgage No Mortgage 

Housing Units in Structure: $62,975 $85,818 $56,984 $39,135 

 1, detached or attached $71,242 $87,446 $58,065 $45,901 

 2 to 4 $35,202 $65,613 $43,568 $34,060 

 5 to 9 (small apartment\condo\townhouse) $31,430 $47,632 $31,628 $29,794 

 10 to 19 (medium apartments, etc) $31,439 $47,646 $31,637 $29,802 

 20 or more (large apartments, etc) $31,661 $47,982 $31,861 $30,013 

Source: Applied Development Economics, based on US Census American Community Survey 2007 (B25032, B25033, B25120) 

Tables 5 and 6 identify estimated annual spending on “miscellaneous household equipment” and 

“large appliances” by households living in the different housing arrangements. Spending amounts in 

Tables 5 and 6 are directly related to average household incomes found in Table 4 above. Spending 

data comes from the US Bureau of Labor Statistics (BLS), which annually surveys over 120,000 

consumers of various incomes and their respective spending habits. 

The tables below show that the typical household living in a single-family unit with mortgage 

payments spends an estimated $1,526 on “miscellaneous household equipment/large appliances” 

(Table 5), and, in general, spends $55,098 on retail and services (Table 6). Thus, the typical 

household that lives in single-family unit with a mortgage spends over 60 percent of household 

income on retail and services (i.e. $55,098/$87,446). In contrast, the typical renter in an apartment 

complex with at least 20 units spends $274 and $10,645 on “miscellaneous household 

equipment/large appliances” and retail and services respectively. Thus, this household spends 35 

percent of its household income on retail and services (i.e. $10,645/$30,013). 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 13

TABLE 5 

MISCELLANEOUS HOUSEHOLD EQUIPMENT AND MAJOR APPLIANCES: ANNUAL EXPENDITURES 

BY TYPE OF UNITS AND TENURE, 2007 

San Joaquin Valley Region 

Owner-Occupied Renter-Occupied 

Mortgage No Mortgage No Mortgage 

Units in Structure By Avg. Household 

 1, detached or attached $1,526 $996 $407 

 2 to 4 $1,264 $707 $266 

 5 to 9 (small apartment, etc) $898 $482 $274 

 10 to 19 (medium apartments, etc) $898 $482 $274 

 20 or more (large apartments, etc) $898 $482 $274 

Source: Applied Development Economics, based on US Bureau of Labor Statistics Consumer Expenditures Annual Survey 

TABLE 6 

AVERAGE ANNUAL HOUSEHOLD CONSUMER RETAIL AND SERVICES EXPENDITURES BY HOUSING 

UNITS IN STRUCTURE AND TENURE, 2007* 

San Joaquin Valley Region 

Owner-Occupied Renter-Occupied 

Mortgage No Mortgage No Mortgage 

Housing Units in Structure: 

 1, detached or attached $55,098 $30,388 $15,546 

 2 to 4 $40,097 $24,470 $12,660 

 5 to 9 (small apartment, etc) $32,239 $20,220 $10,645 

 10 to 19 (medium apartments, etc) $32,239 $17,109 $10,645 

 20 or more (large apartments, etc) $32,239 $17,109 $10,645 

Source: Applied Development Economics, based on US Bureau of Labor Statistics 

Consumer Expenditures Annual Survey (*Note: Total consumer spending excludes housingshelter payment and utilities) 

Incremental Cost and Impact Analysis: Residential Water Heaters 

Table 7 below identifies total and incremental costs of new water heaters that comply with Rule 

4902 as amended. The District does not require households to replace existing water heaters with 

new compliant water heaters. In other words, households and owners of rental properties can 

purchase new water heaters when needed, particularly when their existing water heaters breakdown. 

Thus, the report analyzes incremental costs associated with proposed amendments to Rule 4902, not 

the total cost of new compliant water heaters. As Table 7 shows, the District estimates incremental 

cost at $50 for a new water heater per residential unit. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 14

TABLE 7 

INCREMENTAL COST OF RESIDENTIAL WATER HEATERS (PROPOSED) 

Incremental Cost 

Annualized 

Incremental Cost 

Cost Associated with Proposed Rule $50 $8 

Source: San Joaquin Valley Unified Air Pollution Control District 

Tables 8 and 9 express incremental cost as a share of spending for “miscellaneous household 

equipment/large appliances” in particular, and as a share of overall retail and services spending. 

These tables shows that incremental costs are a small share of the amount of dollars typical 

households spend on “miscellaneous household equipment/large appliances,” meaning that 

incremental cost due to the proposed amendments to Rule 4902 are less than significant. 

Table 8 shows that in most instances a typical household will spend no more than three percent of 

its respective “miscellaneous household equipment/large appliances” spending on the incremental 

cost of new water heaters. Most will spend less than 1.7 percent. For example, for a typical 

mortgage-paying homeowner of a single-family unit, the $8 annual incremental cost amounts to 0.52 

percent of annual spending on “miscellaneous household equipment\large appliances.” For a 

typical renter of a single-family unit, the $8 incremental cost represents 1.96 percent of annual 

spending household equipment and large appliances, assuming the landlord bills the tenant for the 

cost of a new water heater. For a typical mortgage-paying homeowner residing in a building 

consisting of 2 to 4 units, the $8 annual incremental cost amounts to, on average, 0.63 percent of 

annual spending on “miscellaneous household equipment\large appliances.” In general, the ratio of 

annual incremental cost to spending on “miscellaneous household equipment\large appliances” is 

higher for renters than homeowners, although for both the ratio is relatively low at around three 

percent.1

 Table 9 compares incremental costs against overall spending on retail and services. This 

table shows smaller incremental cost-to-spending ratios than cost-to-spending ratios found in Table 

8. Thus, the analysis concludes that households are not significantly impacted by the proposed 

amendments to Rule 4902. Given that cost-to-spending ratios are a small fraction of spending for 

household equipment\large appliances and a minute fraction of overall retail and services spending, 

we also conclude that small businesses will not be disproportionately impacted by the proposed 

amendments, as they will be able to pass costs to consumers. 

 

1

 The analysis assumes that property owners will pass costs onto renters. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 15

TABLE 8 

INCREMENTAL COST AS PERCENT OF MISCELLANEOUS HOUSEHOLD EQUIPMENT AND MAJOR 

APPLIANCES SPENDING 

San Joaquin Valley Region 

Owner-Occupied Renter-Occupied 

Mortgage No Mortgage No Mortgage 

Units in Structure By Avg. Household 

 1, detached or attached 0.52% 0.80% 1.96% 

 2 to 4 0.63% 1.13% 3.01% 

 5 to 9 (small apartment, etc) 0.89% 1.66% 2.92% 

 10 to 19 (medium apartments, etc) 0.89% 1.66% 2.92% 

 20 or more (large apartments, etc) 0.89% 1.66% 2.92% 

Source: Applied Development Economics 

TABLE 9 

INCREMENTAL COST AS PERCENT OF TOTAL ANNUAL HOUSEHOLD CONSUMER RETAIL AND SERVICES 

SPENDING* 

San Joaquin Valley Region 

Owner-Occupied Renter-Occupied 

Mortgage No Mortgage No Mortgage 

Units in Structure By Avg. Household 

 1, detached or attached 0.01% 0.03% 0.05% 

 2 to 4 0.02% 0.03% 0.06% 

 5 to 9 (small apartment, etc) 0.02% 0.04% 0.08% 

 10 to 19 (medium apartments, etc) 0.02% 0.05% 0.08% 

 20 or more (large apartments, etc) 0.02% 0.05% 0.08% 

Source: Applied Development Economics (*note: Total consumer spending excludes housing-shelter payment and utilities) 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009 

Applied Development Economics, Inc. Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902

D - 16

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SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix E: Rule Consistency Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

E - 1

APPENDIX E 

RULE CONSISTENCY ANALYSIS FOR PROPOSED 

AMENDMENTS TO RULE 4902

March 19, 2009 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix E: Rule Consistency Analysis March 19, 2009 

Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

E - 2

RULE CONSISTENCY ANALYSIS FOR PROPOSED AMENDMENTS TO 

RULE 4902 

I. Requirements of Rule Consistency Analysis 

Pursuant to Section 40727.2 OF California Health and Safety Code, prior to 

adopting, amending of a rule or regulation, the District is required to perform a 

written analysis that identified and compares the air pollution control elements of 

the rule amendments to Rule 4902 with the corresponding elements of existing or 

proposed District and EPA regulations and guidelines that apply to Residential 

Water Heaters (units). The analysis is discussed below. 

II. Results of Analysis

A. District Rules 

Rule 4902 applies to manufacturers, distributors, retailers, and installers of PUC 

quality natural gas-fired residential water heaters with heat input rates less than 

or equal to 75,000 Btu/hr. 

No other District rule applies to this source category. Units subject to proposed 

amendments to Rule 4902 are not subject to existing Rule 4308 because this 

rule applies to larger boilers, steam generators, and process heaters or water 

heaters with a rated heat input of greater than 75,000 Btu/hr. 

B. Federal Rules, Regulations, and Policies 

1. Federal Rules 

There are no federal air pollution control requirements for residential water 

heaters. 

2. EPA “Alternative Control Techniques (ACT) Document 

There is no EPA ACT for residential water heaters. 

6. EPA “Control Techniques Guideline (CTG) Document 

There is no EPA CTG for residential water heaters. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix E: Rule Consistency Analysis March 19, 2009 

E – 3 Final Draft Staff R

 For Proposed Ame

Summary of Rule Consistency Analysis For Rule 4902 

Requirements Rule 4902 Federal Rules, Regulations, and Policie

 CTG 

Applicability The rule applies to gas-fired water 

heaters that are less than or equal to 75,000 Btu per 

 None N

Emission Limits • 40 nanograms (calculated as 

NO2) per joule of heat output for 

mobile home water heaters effective currently. 

• 40 nanograms (calculated as 

NO2) per joule of heat output for 

pool heaters effective on and after January 1, 2010. 

• 10 nanograms (calculated as 

NO2) per joule of heat output for 

all water heaters excluding mobile home water heaters, instantaneous water heaters, and pool heaters effective on and after January 1, 2010. 

• 14 nanograms (calculated as 

NO2) per joule of heat output for 

instantaneous water heaters effective on and after January 1, 2012. 

None N

Administrative Requirements Certification requirements. None N
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

Appendix E: Rule Consistency Analysis March 19, 2009 

E – 4 Final Draft Staff Report with Appendices 

 For Proposed Amendments to Rule 4902 

This page intentionally left blank. 



RULEMAKING ADVISORY 

DATE: March 30, 2009 

TO: Interested Parties 

FROM: Lisa Van de Water, Air Quality Specialist 

SUBJECT: Amended Rule 4902 (Residential Water Heaters)

On March 19, 2009, the District Governing Board amended Rule 4902 

(Residential Water Heaters). Interested persons may view and download the 

rules from the District’s web site at www.valleyair.org/rules/1ruleslist.htm. 

To obtain a copy of the rules, please call (559) 230-6005 or fax your request to Noemi 

Walther at (559) 230-6064. Please direct your questions concerning Rule 4902 to the 

Permit Services or Compliance Divisions in your regional District office. 
San Joaquin Valley 

AIR POLLUTION CONTROL DISTRICT 

April 3, 2009 

Mr. Mike Guzzetta, Manager 

Rule Evaluations Section 

California Air Resources Board 

P.O. Box 2815 

Sacramento, CA 9581 2 

Dear Mr. Guzzetta: 

Attached is the Rule Action Package for Rule 4902 (Residential Water Heaters) which 

was amended by the San Joaquin Valley Air Pollution Control District Governing Board 

on March 19, 2009. We request that the California Air Resources Board (ARB) transmit 

Rule 4902 and the appropriate documentation to the United States Environmental 

Protection Agency as a State Implementation Plan (SIP) revision. 

Included with this Rule Action Package are the following attachments: 

1. ARB SIP Completeness Checklist 

2. ARB APCDIAQMD Rule Evaluation Form 

3. Clean Copy of Rule 4902 

4. StrikeoutIUnderline Copy of Rule 4902 

5. Governing Board Resolution 

6. Evidence of Public Hearing 

7. Governing Board Memo 

8. Staff Report with appendices. 

The package is being transmitted by e-mail to ARB staff. If you have any questions, 

please contact Lisa Van de Water at (559) 230-5819 or lisa.vandewater@valleyair.org. 

The District thanks you and your staff for your assistance. 

Sincerely, 

Scott Nester 

Director of Planning 

Attachments 

Seyed Sadredin 

Executive DirectorIAir Pollution Control Officer 

Northern Region Central Region (Main Office) Southern Region 

4800 Enterprise Way 1990 E. Gettysburg Avenue 34946 Fiyover Court 

Modesto, CA 95356-8718 Fresno, CA 93726-0244 Balterst~eid, CA 93308-9725 

Pel: (209) 557-6400 FAX: (2091 557-6475 Tel: (559) 230-6000 FAX: (559) 230-6061 Pel: (661) 392.5500 FAX' 3661 3 392-5585 

www.valleyair.org 

Prlnted on recycled paper 0