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 Implementat ion Plan (SIP) revisions must be supported by certa in information and documentation for the rule packages to be deeme d complete for review by the EPA. Rules will not b e evaluated for approvability by the EPA unless the submittal packa ges are complete. To assist you in determining tha t all necessary materials are included in rules packages sent to th e 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 Co rrecting 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 Heater s)

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 u nderline and strikeout format all language which has been added, deleted, or chan ged 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 c opy 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 certif ication 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 da te of the public hearing, and a statement of compliance with California Healt h 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 p ublic hearing. Also submit any written responses prepared by the Distri ct 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 m ade during the notice period or at the hearing, please indicate N/A to th e left.CALIFORNIA AIR RESOURCES BOARD



### SIP COMPLETENESS CHECKLIST (Electronic Format)

TECHNICAL MATERIALS

Note: All documents and forms should be in electro nic 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 o ther media such as SW846 for solid waste are not automatically approve d for air pollution applications. Submittal of test methods that are n ot EPA-approved should include the information and follow the procedure de scribed in Region 9’s “Test Method Review & Evaluation Process.”

( ) ( ) ( X ) MODELING SUPPORT: Provide if appropriate. In general, modeling sup port is not required for VOC and NOx rules to determine the ir impacts on ozone levels. Modeling is required where a rule is a rel axation that affects large sources (> 100 TPY) in an attainment area for SO2, directly e mitted 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 refere nce back to the approved SIP will be sufficient provided the approved SIP ac counts 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 i ncluded 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, demonstr ating 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 accor ding to EPA’s RACM/BACM policy.

( X ) ( ) ( ) ADDITIONAL MATERIALS : Provide District staff reports and any other supporting information concerning development of th e rule or rule changes. This information should explain the basis for all l imits 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 490 2 March 19, 2009.

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

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 com mitments 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 exclu sively to heat pools or hot tubs (pool heaters). Addition ally, Rule 4902 establishes more stringent NOx limi ts for water heaters including pool heaters and instantaneous wa ter 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 imp lemented, will result in quantifiable changes in em issions. Attach reference(s) for emission factor(s) and other information. Attach calculatio n sheet showing how the emission information provid ed below was determined

.

Net Effect on Emissions: Increase Decrease N/A

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

Inventory Year Used to Calculate Changes in Emissio ns: 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% 2 015: 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 Measu re: 1.37 tons per day of NOx.

Emissions Reduction Commitment in the SIP for the C ontrol 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 calcu lated baseline emissions of 1.41 tons per day of NOx).

Note that the district’s input to the Rule Evaluati on Form will not be used as input to the ARB’s emis sion forecasting and planning.

III. SOURCES/ATTAINMENT STATUS

District is: Attainment Nonattainment Split

Approximate Total Number of Small (<100 TPY) Source s 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 Cont inuous? Yes No

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

Other Methods in the Rule for Achieving Emission Re ductions 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): 6.05/1/2002 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 wa ter heaters less than or equal to 75,000 Btu/hr. N Ox emissions reductions are generated by removing an exemption f rom the rule and by lowering the applicable NOx lim its 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, 2 010 these units must meet all applicable requiremen ts of the rule. Pool heaters would have to meet a NOx limit of 40 nanogr ams 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 o ther applicable units would have to meet lower NOx limits of 10 nanograms per joule of heat output on and after January 1, 2 010.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 4902SJVUAPCD
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 4902SJVUAPCD
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 4902SJVUAPCD
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 4902SJVUAPCD 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

Proposed Amendments to Rule 4902 

### 4902 - 1 RULE 4902 RESIDENTIAL WATER HEATERS (Adopted June 1 7, 1993; Amended (Rule

Adoption Date) )

1.0 Purpose

The purpose of this rule is to limit oxides of nit rogen emissions from residential water
heaters.

2.0 Applicability

This rule applies to residential manufacturers, distributors, retailers, and instal lers of PUC quality natural gas-fired residential water heaters with heat input rates less than or eq ual to 75,000 Btu/hr

.

3.0 Definitions

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

3.2 California Public Utility Commission (PUC) Qua lity 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 (1 00) standard cubic feet and no more than five (5) grains of total sulfur per one h undred (100) standard cubic feet. PUC quality natural gas also means high methane ga s of at least 80% methane by
volume.

3.1 Natural Gas

- Fired Water Heater: A closed vessel, in which w ater 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 app aratus by which heat is generated and all controls and devices necessary to prevent water temperatures fro m exceeding 210 ° F

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

methane by volume as determined according to Standa rd Method ASTM D1945

- 64

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

defined by Section 6.1.3 of the Code of Federal Reg ulation, Title 10, Part 430, Subpart B, Appendix E, by the input rating of the w ater heater.

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

(Btu/Hour).

3.5 Instantaneous Water Heater: A water heater tha t heats water only when it flows through a heat exchanger.

# PROPOSED March 19, 2009

Proposed Amendments to Rule 4902 

### 4902 - 2 3.6 Mobile Home Water Heater: A closed vessel manu factured exclusively for mobile home use in which water is heated by combust ion of gaseous fuel and is withdrawn for use external to the vessel at pressur es not exceeding 160 psig, including the apparatus by which heat is generated and all controls and devices necessary to prevent water temperatures from exceed ing 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 ex ternal to the vessel at pressures not exceeding 160 psig, including the app aratus 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 n N atural gas-fired water heaters with rated heat inpu t of greater than

75,000 Btu per hour.

4.2 Water heaters using fuels other than PUC quali ty natural gas.

4.3 Pool heaters. Natural gas

- fired heaters used exclusively to heat swimming poo ls
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 recreationa l vehicles.

5.0 Requirements

5.1 Natural Gas

- Fired Water Heaters with a rated heat input less th an 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 quali ty natural gas-fired water heater manufactured after December 17, 1993, except for mo bile 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 NO 2 

### ) per Joule of heat output.

5.2 No person shall manufacture for sale, distribut e, sell, offer for sale, or install within the District any PUC quality natural gas-fir ed mobile home water heater unless the water heater is certified pursuant to Se ction 6.1 to a NOx emission level of less than or equal to 40 nanograms of NOx (calcu lated as NO 2 

### ) per joule of heat output.

5.3 On and after January 1, 2010, no person shall m anufacture for sale, distribute, sell, offer for sale, or install within the District any PUC quality natural gas-fired pool

# PROPOSED March 19, 2009

Proposed Amendments to Rule 4902 

### 4902 - 3 heater unless the water heater is certified pursuan t to Section 6.1 to a NOx emission level of less than or equal to 40 nanogram s of NOx (calculated as NO 2 

### ) per joule of heat output.

5.4 On and after January 1, 2010, no person shall m anufacture 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, instan taneous 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 nanogram s of NOx (calculated as NO 2 

### ) per joule of heat output.

5.5 On and after January 1, 2012, no person shall m anufacture 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 t o 14 nanograms of NOx (calculated as NO 2 

### ) per joule of heat output.

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

shall be certified in accordance with s e ctions 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 St andards ANSI Z21.10.1-1990, Z21.10.3-2004, or Z21.56-2006, as ap plicable, at normal test pressure, input rates, and with a five-foot ex haust stack installed during the nitrogen oxides emission tests.

6.1.2 6.2 Certification: The manufacturer shall demonstrate that each wate r

heater model subject to the requirements of s S ection 4.1 5.0 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 t he emissions of

NO
x 

### in nanograms of NO
x 

### per Joule of heat output:

N = (4.566 x 10 4 

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

Where:

N = NO X 

### emission rate in nanograms of NO X 

### emitted per Joule of heat output

# PROPOSED March 19, 2009

Proposed Amendments to Rule 4902 

### 4902 - 4 4.566 x 10 4 

### = unit conversion factor (ppm to nanograms and B tu to Joules)
P = Concentration of NO X 

### in the flue gas in parts per million (volume) U = Dry volume percent of CO 2 

### 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 CO 2 

### in flue gas E = Recovery efficiency, percentage, as define d 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 approve d South

Coast Air Quality Management District Rule 1121 (Co ntrol of Nitrogen Oxides From Residential Type, Natural Gas-Fired Wat er Heaters) SCAQMD , Ventura County Air Pollution Control District Rul e 74.11 (Natural Gas-Fired Residential Water Heaters – Cont rol of NOx), or Bay Area Air Quality Management District Regulation 9 R ule 6 (Nitrogen
Oxides Emissions from Natural Gas-Fired Boilers and Water Heaters) BAAQMD certification in lieu of conducting duplicative ce rtification 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 c ertifying the water heaters subject to this rule are in compliance with the provisions of

s S ection 5.0 1 . The statement shall be signed, dated and shall a ttest to the accuracy of all information. The statement shall i nclude:

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 ra ting plate,

and
6.1.5.4 Heat input rating, Btu/hr.

6.2 6.4 Identification: For units subject to Section 5.0, t T he 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 un it. :

6.2.1 the model number, 6.2.2 the date of manufacture, and
6.2.3 the certification status.

# PROPOSED March 19, 2009

Proposed Amendments to Rule 4902 

### 4902 - 5

# PROPOSED March 19, 2009

Proposed Amendments to Rule 4902 

### 4902 - 6 This page intentionally blank.SJVUAPCD 3/19/2009 

### 4902 - 1 RULE 4902 RESIDENTIAL WATER HEATERS (Adopted June 1 7, 1993; Amended March

19, 2009)

1.0 Purpose

The purpose of this rule is to limit oxides of nit rogen 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 he at input rates less than or equal to 75,000 Btu/hr.

3.0 Definitions

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

3.2 California Public Utility Commission (PUC) Qua lity 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 (1 00) standard cubic feet and no more than five (5) grains of total sulfur per one h undred (100) standard cubic feet. PUC quality natural gas also means high methane ga s of at least 80% methane by
volume.

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

defined by Section 6.1.3 of the Code of Federal Reg ulation, Title 10, Part 430, Subpart B, Appendix E, by the input rating of the w ater heater.

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

(Btu/Hour).

3.5 Instantaneous Water Heater: A water heater tha t heats water only when it flows through a heat exchanger.

3.6 Mobile Home Water Heater: A closed vessel manu factured exclusively for mobile home use in which water is heated by combust ion of gaseous fuel and is withdrawn for use external to the vessel at pressur es not exceeding 160 psig, including the apparatus by which heat is generated and all controls and devices necessary to prevent water temperatures from exceed ing 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 ofSJVUAPCD 3/19/2009 

### 4902 - 2 PUC quality natural gas and is withdrawn for use ex ternal to the vessel at pressures not exceeding 160 psig, including the app aratus 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 wi th rated heat input of greater than

75,000 Btu per hour.

4.2 Water heaters using fuels other than PUC quali ty natural gas.

4.3 Pool heaters. On and after January 1, 2010, po ol heaters shall comply with all applicable requirements of this rule.

4.4 Water heaters used exclusively in recreationa l vehicles.

5.0 Requirements

5.1 On and before December 31, 2009, no person shal l sell, install or offer for sale within the District any PUC quality natural gas-fir ed water heater manufactured after December 17, 1993, except for mobile home wat er 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 nitr ogen oxides (calculated as NO 2 

### ) per Joule of heat output.

5.2 No person shall manufacture for sale, distribut e, sell, offer for sale, or install within the District any PUC quality natural gas-fir ed mobile home water heater unless the water heater is certified pursuant to Se ction 6.1 to a NOx emission level of less than or equal to 40 nanograms of NOx (calcu lated as NO 2 

### ) per joule of heat output.

5.3 On and after January 1, 2010, no person shall m anufacture 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 pursuan t to Section 6.1 to a NOx emission level of less than or equal to 40 nanogram s of NOx (calculated as NO 2 

### ) per joule of heat output.

5.4 On and after January 1, 2010, no person shall m anufacture 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, instan taneous 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 nanogram s of NOx (calculated as NO 2 

### ) per joule of heat output.SJVUAPCD 3/19/2009 

### 4902 - 3 5.5 On and after January 1, 2012, no person shall m anufacture 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 t o 14 nanograms of NOx (calculated as NO 2 

### ) 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 no rmal test pressure, input rates, and with a five-foot exhaust stack ins talled during the nitrogen
oxides emission tests.

6.1.2 The manufacturer shall demonstrate that eac h 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 calc ulate the emissions of NO
x 

### in

nanograms of NO
x 

### per Joule of heat output:

N = (4.566 x 10 4 

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

Where:

N = NO X 

### emission rate in nanograms of NO X 

### emitted per Joule of heat output
4.566 x 10 4 

### = unit conversion factor (ppm to nanograms and B tu to Joules)
P = Concentration of NO X 

### in the flue gas in parts per million (volume) U = Dry volume percent of CO 2 

### 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 CO 2 

### in flue gas E = Recovery efficiency, percentage, as define d 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 N itrogen Oxides From Residential Type, Natural Gas-Fired Water Heat ers), VenturaSJVUAPCD 3/19/2009 

### 4902 - 4 County Air Pollution Control District Rule 74.11 (N atural Gas-Fired Residential Water Heaters – Control of NOx), or Bay Area Air Quality Management District Regulation 9 Rule 6 (Nitrogen O xides Emissions from Natural Gas-Fired Boilers and Water Heaters) c ertification 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 t his 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 he ater rating plate,

and 6.1.5.4 Heat input rating, Btu/hr.

6.2 For units subject to Section 5.0, the manufact urer 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~deoteleconferencing 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~a nd 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~dmatters 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~d

### patter. 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 En

### of 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

0 THIS DAY 

### &

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.

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# 0 Address 1990 E GETTYSBURGFRED BATES 

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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 a rule 

### 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) 1Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4902 

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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 S pecialist Clay Bishop, Air Quality Inspector

Dan Klevann, Air Quality Engineer Joven R. Nazareno, Senior Air Quality Engineer George Heinen, P.E., Supervising Air Quality Engin eer Errol Villegas, Planning Manager

I. SUMMARY

A. Reasons for Rule Development and Implementation

The San Joaquin Valley Air Basin (SJVAB) is a conti nuous inter-mountain valley comprised of eight counties in the southern portion of the San Joaquin Valley of California: Fresno, Kings, Madera, Merced, San Joaq uin, 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 Mounta in 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 format ion 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 NAAQ S. Prior to the United States Environmental Protection Agency’s (EPA’s) implement ation of the eight-hour ozone standard, the SJVAB was also classified as an extre me nonattainment area for the onehour ozone NAAQS. Although EPA revoked the one-hou r ozone NAAQS, the San Joaquin Valley Air Pollution Control District (Dist rict) 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 Californ ia ozone air quality standard and nonattainment for the California air quality standa rd for particulate matter ten microns in diameter or smaller (PM10).

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 th e 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) requireme nts. This rulemaking project is intended to satisfy the attainment goals of the Dis trict’s 2007 Eight-Hour Ozone Plan. The proposed amendments to Rule 4902 (Residential W ater Heaters) will seek to obtain as much reduction of oxides of nitrogen (NO x 

### ) from residential water heaters as expeditiously practicable, technologically feasible , and economically reasonable, as determined by the District’s Governing Board. Furt hermore, the rule is intended to satisfy the requirements identified in Table 1 belo w.

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 f or different program requirements under the NSR program. EPA defines RA CT as “the lowest emission limitation that a particular source is capable of m eeting 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 DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 (R esidential 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 ach ieved by lowering the NOx emission limit from those adopted in 1993.

As guidelines for developing the proposed changes t o Rule 4902, District staff studied rules from other air districts within and outside o f California. Lower NOx limits are already in place in the following rules:

• South Coast Air Quality Management District (SCAQM D) Rule 1121 (Control of Nitrogen Oxides From Residential Type, Natural Gas- Fired Water Heaters) (Amended September 3, 2004) and Rule 1146.2 (Emissi ons 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 s ource category affected would include water heater manufacturers, plumbing wholesalers, r etail home supply stores, plumbers and contractors, and homeowners.

C. Rule Development Process

The District’s 2007 Eight-Hour Ozone Plan identifie d Rule 4902 as control measure SCOM-9 which would be implemented through the rule d evelopment process. As part of the rule development process, District staff conduc ted public workshops in November 2008 and January 2009 to present and discuss propos ed amendments to Rule 4902.

At the workshops, District staff presented the obje ctives of the proposed rulemaking project and provided draft amendments. District st aff solicited information from affected source operators, consultants, vendors and manufact urers of control technologies, and trade associations on the technological feasibility and compliance cost information that would be useful in developing amendments to Rule 49 02.

The comments received from the public, affected sou rces, interested parties, California Air Resources Board (ARB), and EPA, during the public w orkshop process have been incorporated into the draft rule as appropriate. C omments received and District staff responses are presented in Appendix A of this repor t.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 limitatio ns. As part of the District socioeconomic analysis process, District staff requ ested 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 socioec onomic 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 ex pected from this rule.

The proposed rule, final draft staff report with ap pendices, and final draft socioeconomic analysis report will be published and mailed to aff ected 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 newspape r in each of the eight San Joaquin Valley counties and will be mailed to affected sour ces, interested parties, the public, EPA and ARB. The public notice will solicit writte n comments to be submitted by mail, and it also will identify the name and telephone nu mber of the District staff who can answer questions and respond to comments. The publ ic hearing is scheduled for March 19, 2009.

II. CURRENT AND PROPOSED REGULATIONS

A. Existing Rule 4902

Rule 4902 (Residential Water Heaters) was adopted J une 17, 1993 and has not been amended since that time. The purpose of Rule 4902 is to limit NO 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 tha t are greater than 75,000 Btu/hr, or used exclusively in recreational vehicles, or use o ther 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 D ecember 17, 1993 that emits more than 40 nanograms of NO x 

### calculated as NO 2 

### per Joule of heat output. The rule also requires subject water heaters to be certified as m eeting that limit.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 Comm ission (PUC) Quality Natural Gas” would be added to the rule to make Rule 4902 uniform with other District rules. Other definitions added to the ru le include Air Pollution Control Officer, instantaneous water heater, mobile home water heate r, and pool heater.

Section 4.0 – Exemptions: The exemption for water heaters used exclusively to heat swimming pools or hot tubs would be deleted, thereb y making such units subject to the emission limits of the rule. Though these units ty pically are low use their emissions tend to be higher than low-NO x 

### types of water heaters. Removing this exemption w ill 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 disti nct types of water heaters and includes the required NO x 

### limit and compliance deadline.

• On and after January 1, 2010, pool heaters, curren tly exempt, will be required to meet the 40 nanograms of NO x 

### 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 NO x 

### per joule of heat output.

• Mobile home water heaters will remain at the techn ologically achievable limit of 40 nanograms of NO x



### per joule of heat output.

• On and after January 1, 2010, all other water heat ers will be required to meet a NO x 

### limit of 10 nanograms of NO 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. Section 6.1 ha s been modified requiring “certification status” to be displayed on the water heater shippin g carton and rating plate of each unit.

III. CURRENT EMISSIONS AND EMISSIONS REDUCTION

The District’s 2007 Eight-Hour Ozone Plan states, f or this source category, that the current emissions are approximately 1.3 tons of NO x 

### per day which is approximately 474.5 tons of NO x 

### per year. The projected reductions, with the reco mmended changes, would total approximately 0.85 tons of NO x 

### per day or 310.25 tons of NO x 

### per year.

Further calculations show that the number of natura l 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 NO x 

### per year. District staff’s emissions reduction analysis is shown in Appendix B of this report.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 t hird 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, sola r water heaters, and tankless coil and indirect water heaters. Water heater options a lso vary by fuel type which includes electricity, fuel oil, geothermal energy, natural g as, propane, and solar energy.

As stated previously, Rule 4902 only regulates PUC quality natural gas fired water heaters. Conventional storage water heaters are th e most common. The U.S. Department of Energy states that almost all water h eaters sold in the U.S. are storage water heaters. They have an insulated tank sized f rom 20 to 80 gallons and natural gas fired units have a gas burner under the tank regula ted 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 dema nd 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 th rough a heat exchanger installed in a furnace or boiler. Similar to the tankless coil wa ter heater an indirect water heater uses a furnace or boiler. Fluid heated by the furnace o r boiler is circulated through a heat exchanger in a storage tank.

Manufacturers have focused on combustion modificati on to meet the lower NO x 

### limit as required in other California air districts. Combus tion modification systems are designed to reduce thermal NO x



### formation by changing the flame characteristics to reduce peak flame temperature. Combustion modification for residenti al water heaters is achieved by different burner designs such as Low NO x 

### and Ultra Low NO x



### burners. Some of the design principles used in Ultra low NO x 

### and Low NO x



### burner include staged air burners, staged fuel burners, pre-mix burners, internal reci rculation, 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 NO x 

### 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 Av ailable Retrofit Control Technology (BARCT) or all feasible measure. The co st effectiveness, of the reference draft NOx limit in SCAQMD Rule 1121, is listed by t he 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 alread y been absorbed by manufacturers due to complying with other district rules. Distri ct staff calculated the cost effectiveness to be approximately $20,000/ton. This amount is ba sed on an increased cost of $50 per

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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 pe r boiler. The cost effectiveness analysis is shown in Appendix C.

VI. SOCIOECONOMIC ANALYSIS

CH&SC Section 40728.5(a) requires the District to p erform an assessment of the socioeconomic impacts of the adoption, amendment, o r repeal of a rule or regulation that will significantly affect air quality or emiss ion limitations. The result of the socioeconomic analysis was used to further refine t he rule amendments as appropriate. The socioeconomic report was published as part of t he 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 source s. 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 Ac t (CEQA), District staff investigated the likely environmental impacts of the proposed rule a mendments. 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 environ ment. Staff recommend filing a Notice of Exemption under the provisions of Public Resourc e 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 amendme nts with the corresponding elements of other District rules, federal regulatio ns and guidelines that apply to the same source category or type of equipment. The pro posed 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 DI STRICT

Final Draft Staff Report for Amendments to Rule 490 2 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) da ta 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 Di strict 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 Febr uary 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 Divi sion, but not by the Enforcement Division.

If you have any questions, please contact me by e-m ail or at the telephone number above.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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 DI STRICT

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 DAT ED 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 DI STRICT

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 DI STRICT

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 ol der units operating currently at a NO x 

### emission limit of 40 nanograms (calculated as NO 2 

### ) 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 Managem ent District Regulation 9, Rule 6 staff report, the average useful life of a resident ial water heater is approximately 12 years and the average water heater produces 1.08 lb /year of NO x 

### . New units would emit 75% less NO x 

### .
Rule 4902 would require that no units be sold, inst alled, or offered for sale in the District unless they met a NO x



### limit of:

• 40 nanograms (calculated as NO 2 

### ) per joule of heat output for mobile home water heaters effective currently.

• 40 nanograms (calculated as NO 2 

### ) per joule of heat output for pool heaters effective on and after January 1, 2010.

• 10 nanograms (calculated as NO 2 

### ) 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 NO 2 

### ) per joule of heat output for instantaneous water heaters effective on and after January 1, 201 2.

II. Current Emissions from Affected Units

In the 2007 Ozone Plan, Appendix I, page Appendix I – 28 notes that NO x 

### emissions from sources subject to the Residential Water Heate rs 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 h ousing units was obtained from ADE data generated during development of District Rule 4901 (Wood Burning Fireplaces And Wood Burning Heaters). Information from the En ergy Information Administration was also used to identify the state average of natu ral gas fired residential water heaters as compared to other types of fuel.

Current emissions or emission reductions were not c alculated for instantaneous water heaters because the information was not available f rom the Energy Information Administration. The Energy Information Administrat ion 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 DI STRICT

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 emission s 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 implem entation of the Residential Water Heaters control measure, 0.85 tons per day of NO x 

### reductions from a planning baseline of 1.37 tons NOx/day was anticipated. As calculate d in this analysis and shown in Table 1, current NO x



### emissions from the affected units are estimated to be 1.41 tons per day. The proposed rule would achieve NO x 

### emissions reduction of 1.06 tons per day from that baseline. To determine if the planni ng reduction was met, the estimated percent reduction will be applied to the planning b aseline as follows:

Percent Reduction = (Calculated NOx Emissions Reduc tion ÷ Estimated Current NO x 

### Emissions) x 100%

Percent Reduction = (1.06 tons per day ÷ 1.41 tons per day) x 100% = 75.2%

Amount NOx Reduced = 2005 Baseline NO x 

### Emission Inventory x from Planning Baseline Percent Reduction /100

2005 Baseline Emissions = 1.37 tons per day

Amount NO x 

### Reduced = 1.37 tons per day x 75.2% / 100 From Planning Baseline = 1.03 tons/day

Therefore the proposed control measure satisfies th e 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 r esidential water heater gives a potential of 1,199,290 water heaters. Since Rule 4 902 only applies to natural gas fired water heaters District staff used the Energy Inform ation Administration’s breakdown of water heater fuel types.

1. Of the total number of water heaters in the Dist rict approximately 85.12% are natural gas fired: (0.8512 X 1,199,290 = 1,020,836 natural gas fired w ater heaters)

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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, 64,2 92 are mobile home units. Mobile home water heaters will remain at the curren t limit of 40 nanograms (calculated as NO 2 

### ) per joule of heat output and therefore do not con tribute 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 uni ts that meet the 40 nanograms (calculated as NO 2 

### ) 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 un its)

3. Current emissions from the applicable units woul d 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 da y)

4. The change in limits from 40 nanograms to 10 nan ograms (calculated as NO 2 

### ) per joule of heat output represents a 75% reduction . The emissions reduction would equal a 75% reduction from the current emissi ons:

(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 be low for the units subject to Rule 4902. Table 1 summarizes the basis and results of those calculations.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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 Units A


### SJVAPCD 1,199,290

Fuel Type Percent by Fuel B 

### 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 redu ction

A Source: Applied Development Economics, based on Cal ifornia Department of
Finance

B Energy Information Administration, 2005 Residential Energy Consumption Survey

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Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4902 

### B - 6 This page intentionally blank.

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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

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Appendix C: Cost Effectiveness Analysis March 19, 200 9

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) re quires the San Joaquin Valley Unified Air Pollution Control District to conduct b oth an "absolute" cost effectiveness analysis and an incremental cost effectiveness anal ysis of available emission control options prior to adopting each Best Available Retro fit Control Technology (BARCT) rule. The purpose of conducting a cost effectiveness anal ysis 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 reside ntial water heater be sold, installed, or offered for sale unless it met a NO x 

### limit of 10 nanograms of NO x 

### (calculated as NO 2 

### ) 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 effective ness 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 NO x 

### 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 emi ssion 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 t o note that the actual increased cost of the new boilers is only $50 per unit and that the c ost 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/y ear) between two progressively more effective control options or technologies. IC E compares the differences in costs and the differences in emissions reductions of cand idate control options. ICE does not reveal the emission reduction potential of the cont rol options. Unlike the absolute cost effectiveness analysis that identifies the control option with the greatest emission reduction, ICE does not present any correlation bet ween emissions reductions and cost effectiveness. Therefore, the relative values prod uced in the ICE analysis and the

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### absolute cost effectiveness values are not comparab le 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 economic ally feasible control option that is more stringent than ultra low NO x 

### burner technology that could meet the proposed 10 nanograms NO x



### limit. Other control technology like selective ca talytic reduction (SCR), and selective noncatalytic reduction (SNCR) are not technologically feasible or achieved in practice for residential water heaters. Such technologies reduce NO x 

### emissions by injecting ammonia in the exhaust gas a nd 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 NO x 

### burner technology, conducting the ICE analysis is not appropriate.

III. SOURCES OF COST DATA

Preliminary cost information is based on the Bay Ar ea Air Quality Management District staff report for Regulation 9 Rule 6 (Nitrogen Oxid es Emissions From Natural Gas-Fired Boilers And Water Heaters). Staff may refine the a nalysis 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 ca n achieve the proposed emission limits; (3) estimate the average annualized cost of each co ntrol 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 Me thod

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

1. Determine an equivalent annual equipment cost us ing a capital recovery factor based on an assumed interest rate of 10 percent and equipment life of 10 years.

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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 fact or 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 St ep 1 and Step 2).

$8.00 + $0 = $8.00

4. Calculate the emission reduction in tons/year (A s shown in Appendix B).

0.81 lb/year = 0.81 lb/year X 1 ton/2000 lb = 0.000 405 tons/year

5. Calculate the absolute cost effectiveness. (Div ide 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

Cost 1 Total Annual Cost 2 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 wit h 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).

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Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 1 

## APPENDIX D

Socioeconomic Impact Analysis For Rule 4902 (Residential Water Heaters)

March 19, 2009

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Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### 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

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### 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 W ater Heaters....................................... ..13

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### D - 4 

# 1. EXECUTIVE SUMMARY

The San Joaquin Valley Unified Air Pollution Contro l District (“District”) adopted Rule 4902 (Residential Water Heaters) on June 17, 1993. Distr ict staff seeks to amend Rule 4902 to implement an emission control measure (S-COM-9) in the Distri ct’s 2007 Eight-Hour Ozone Plan. As guidelines for developing the proposed changes to R ule 4902, District staff studied rules from other
air districts within and outside of California. Low er 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 Wat er Heaters) (Amended September 3, 2004) and Rule 1146.2 (Emissions of Oxides of Nitrogen Fr om 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 t ype rule and the source category affected would include water heater manufacturers, plumbing wholes alers, 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 o f new water heaters is approximately $50 (or $8 on an annualized basis) for housing of a variety of si zes, from single-family units to small-to-large mul tifamily units. Impacts to households are less than s ignificant. 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 equipm ent and large appliances” and what they spend on retail and services in general. In additio n, the analysis concludes by saying that small businesses are not disproportionately impacted by t he proposed amendments to Rule 4902.

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### D - 6 

# 2. DESCRIPTION OF THE PROPOSED RULE

CURRENT STATUS OF THE RULE
Rule 4902 (Residential Water Heaters) was adopted J une 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 ga s, 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 t hat emits more than 40 nanograms of NOx calculated as NO2 per Joule of heat output. The rule also requires su bject water heaters to be
certified.


### PROPOSED RULE AMENDMENTS
Section 2.0 (Applicability): This section would be modified to add clarity to th e rule.
Section 3.0 (Definitions): A definition of “California Public Utilities Commis sion (PUC) Quality Natural Gas” would be added to the rule to make Rul e 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 s uch units subject to the emission limits of the rule. Though these units typically are low use thei r emissions tend to be higher than low- NOx

x 

### types of water heaters. Removing this exemption wil l make Rule 4902 similar to South Coast AQMD Rule 1146.2 which applies to this type of unit s. Section 5.0 – Requirements: This section has been modified to include a table o f NOx

x 

### limits with
effective compliance deadlines. On and after Decem ber 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, f or this source category, that the 2005 baseline emissions are approximately 1.37 tons of NOx per da y which is approximately 500 tons of NOx per year. The Ozone Plan’s projected reductions, with t he recommended changes, would total approximately 0.85 tons of NOx per day or 310.25 to ns of NOx per year. Further calculations show that the number of natural gas water heaters is app roximately 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 preli minary estimate of emissions reduction is shown in Appendix B of the Draft Staff Report.

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Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 7 

# 3. IMPACT OF PROPOSED RULE AMENDMENTS

This section of the socioeconomic analysis describe s 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 Va lley 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 CON TROL DISTRICT

Source: ADE, Inc.

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### D - 8 

### METHODOLOGY
The socioeconomic analysis of the proposed rule ame ndments concerning nitrogen oxides from stationary gas turbines involves the use of informa tion provided directly by the District, as well as secondary data used to describe the industries affe cted by the proposed rule amendments.
Based on information provided by District staff, AD E 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 determine d 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 w ith 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 repor t 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 demograph ic information of typical households living in various housing settings, from owner-occupied singl e-family homes to renters living in large apartment complexes. With respect to impacts on ho useholds purchasing new water heaters that comply with Rule 4902 as amended, ADE gathered info rmation from US Census, particularly data from 2007 American Community Survey (ACS) on househ olds in the eight-county San Joaquin Valley region. We also checked data against demogra phic estimates produced by the California Department of Finance. ADE identified typical hous eholds in a variety of housing arrangements, from households in owner-occupied single-family hom es to renters living in large apartment complex. ADE identified average household incomes f or households in various housing arrangements, and, based on this information, calcu lated 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 o n the significance of the incremental cost.



### REGIONAL DEMOGRAPHIC TRENDS
The San Joaquin Valley Region experienced significa nt 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 sam e 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.

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### D - 9 TABLE 1 POPULATION TRENDS: SAN JOAQUIN VALLEY REGION AND CA LIFORNIA, 1997-2007

------------------- Year -------------- ------- Ch ange ------- - Annual % Change -
1997 2002 2007 97-02 02-07 97-02 02-07 California 32,670,019 35,088,671 37,662,518 2,418,6 52 2,573,847 1.4% 1.4% Region 3,147,776 3,445,018 3,900,965 297,242 455,94 7 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 o f Finance



### REGIONAL ECONOMIC TRENDS
Economic development practitioners and planners hav e traditionally divided economies into two broad industrial categories—the economic base and l ocal support industries. Economic base industries are the drivers of local and regional ec onomies in that these industries draw income into a local economy by selling products outside of the lo cal economy, much like the export industries of a national economy. Accrued earnings then circulate t hroughout the local area in the form of wages and salaries; investments; purchases of fixed asset s, goods, and services; and generation of more jobs
and wealth.
The economic base is typically comprised of industr ies within the manufacturing, minerals-resource extraction, and agricultural sectors. There are als o the “local support industries” such as retail or service sectors, the progress of which is a functio n of the economic base and demographic changes, and more so the latter than the former. As populati on 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 t he 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 nat ion and the globe. Twelve percent of all workers in the region are employed by industries within agr iculture, 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 gai ned in prominence within the San Joaquin Valley region. Service-rendering industries employe d 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 w ords, 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-re ndering industries (excluding the public sector) represented 44 percent of all jobs, early as the mi d to late 1990s with the significant increase in th e number of people during that time.

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### D - 10 Increases in employment in service-rendering indust ries 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 p ercent, 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 an nually 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\uti lities, 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 217,333 184,4 35 197,798 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 189,894 209,33 5 237,788 2.0% 2.6% Retail 116,765 131,458 145,700 9.5% 1 0.8% 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 96,624 115,5 21 135,197 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 M arket Information Division of the California Employment Development Department

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### 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 househ olds occupy buildings that utilize a water heater i n one capacity or another. Households living in singl e-family units to multi-family structures, from duplexes to large apartment buildings, are potentia lly subject to the rule, at the point in time they
need a new water heater.
The discussion below analyzes household and demogra phic trends in greater detail. The discussion first examines household trends, including analysis on what proportion of household spending incremental costs associated with rule amendments r epresents. 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 hou seholds maintain a mortgage (or 45 percent). Approximately 178,114 households live in owner-occu pied units with no mortgage payments (15 percent). Table 3 also shows that there are over 47 7,732 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: 1,199,290 543,444 178,1 14 477,732 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 B 25098) and California Department of Finance (Report E-5)



### Data is broken into three broad categories of “mort gage,” “no mortgage,” and “renters” as incomes for households in each of these broad categories ty pically differ even when adjusted for housing unit type (i.e. single-family units, duplex, small apart ment, mid-sized apartment, and large apartment). Thus, the average household income for households i n owner-occupied living situations with a mortgage is $85,818 versus $56,984 for households w ithout a mortgage. Because spending on a wide variety of goods, including household equipmen t and large appliances, varies with income, it is important to characterize average household incomes as accurately as possible.

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### D - 12 Table 4 identifies average household incomes for ho useholds living in various housing arrangements. At $87,446, the typical household liv ing 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 r ents 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 $56,9 84 $39,135 1, detached or attached $71,242 $87,446 $58,06 5 $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 $47,6 46 $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, B250 33, B25120)



### Tables 5 and 6 identify estimated annual spending o n “miscellaneous household equipment” and “large appliances” by households living in the diff erent housing arrangements. Spending amounts in Tables 5 and 6 are directly related to average hous ehold 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 s pending habits.
The tables below show that the typical household li ving in a single-family unit with mortgage payments spends an estimated $1,526 on “miscellaneo us household equipment/large appliances” (Table 5), and, in general, spends $55,098 on retai l and services (Table 6). Thus, the typical household that lives in single-family unit with a m ortgage 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 servi ces (i.e. $10,645/$30,013).

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009

Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 13 TABLE 5 MISCELLANEOUS HOUSEHOLD EQUIPMENT AND MAJOR APPLIAN CES: 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 $2 74 20 or more (large apartments, etc) $898 $482 $ 274 Source: Applied Development Economics, based on US Bureau of Labor Statistics Consumer Expenditures An nual Survey

TABLE 6 AVERAGE ANNUAL HOUSEHOLD CONSUMER RETAIL AND SERVIC ES 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 $15,54 6 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 $17,1 09 $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 c onsumer spending excludes housingshelter payment and utilities)



### Incremental Cost and Impact Analysis: Residential W ater Heaters

Table 7 below identifies total and incremental cost s of new water heaters that comply with Rule 4902 as amended. The District does not require hous eholds to replace existing water heaters with new compliant water heaters. In other words, househ olds and owners of rental properties can purchase new water heaters when needed, particularl y when their existing water heaters breakdown. Thus, the report analyzes incremental costs associa ted with proposed amendments to Rule 4902, not the total cost of new compliant water heaters. As T able 7 shows, the District estimates incremental cost at $50 for a new water heater per residential unit.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009

Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 14 TABLE 7 INCREMENTAL COST OF RESIDENTIAL WATER HEATERS (PROP OSED)

Incremental Cost Annualized Incremental Cost Cost Associated with Proposed Rule $50 $8 Source: San Joaquin Valley Unified Air Pollution Co ntrol 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 sma ll share of the amount of dollars typical households spend on “miscellaneous household equipm ent/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 hous ehold will spend no more than three percent of its respective “miscellaneous household equipment/l arge appliances” spending on the incremental cost of new water heaters. Most will spend less tha n 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 househ old equipment\large appliances.” For a typical renter of a single-family unit, the $8 incr emental 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 increment al cost amounts to, on average, 0.63 percent of annual spending on “miscellaneous household equipme nt\large appliances.” In general, the ratio of annual incremental cost to spending on “miscellaneo us household equipment\large appliances” is higher for renters than homeowners, although for bo th the ratio is relatively low at around three
percent. 1 

### Table 9 compares incremental costs against overal l spending on retail and services. This table shows smaller incremental cost-to-spending ra tios than cost-to-spending ratios found in Table 8. Thus, the analysis concludes that households ar e not significantly impacted by the proposed amendments to Rule 4902. Given that cost-to-spendi ng ratios are a small fraction of spending for household equipment\large appliances and a minute f raction 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 c onsumers.

1 The analysis assumes that property owners will pas s costs onto renters.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009

Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 15 TABLE 8 INCREMENTAL COST AS PERCENT OF MISCELLANEOUS HOUSEH OLD 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 HOUSEHO LD 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 DI STRICT

Appendix D: Socioeconomic Impact Analysis Report March 19, 2009

Applied Development Economics, Inc. Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4 902 

### D - 16 This page intentionally left blank.

### SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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 DI STRICT

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 T O RULE 4902

I. Requirements of Rule Consistency Analysis

Pursuant to Section 40727.2 OF California Health an d Safety Code, prior to adopting, amending of a rule or regulation, the Dis trict is required to perform a written analysis that identified and compares the a ir pollution control elements of the rule amendments to Rule 4902 with the correspon ding elements of existing or proposed District and EPA regulations and guideline s that apply to Residential Water Heaters (units). The analysis is discussed b elow.

II. Results of Analysis

A. District Rules

Rule 4902 applies to manufacturers, distributors, r etailers, 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 categ ory. Units subject to proposed amendments to Rule 4902 are not subject to existing Rule 4308 because this rule applies to larger boilers, steam generators, a nd 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 requirem ents for residential water heaters.

2. EPA “Alternative Control Techniques (ACT) Docume nt

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 DISTRICTAppendix E: Rule Consistency AnalysisMarch 19, 2009E – 3Final Draft Staff Report with AppendicesFor Proposed Amendments to Rule 4902Summary of Rule Consistency Analysis For Rule 4902Federal Rules, Regulations, and PoliciesRequirements Rule 4902CTG ACTApplicabilityThe rule applies to gas-fired waterheaters that are less than or equal to75,000 Btu perNone NoneEmission Limits•40 nanograms (calculated asNO2) per joule of heat output formobile home water heaterseffective currently.•40 nanograms (calculated asNO2) per joule of heat output forpool heaters effective on andafter January 1, 2010.•10 nanograms (calculated asNO2) per joule of heat output forall water heaters excludingmobile home water heaters,instantaneous water heaters,and pool heaters effective onand after January 1, 2010.•14 nanograms (calculated asNO2) per joule of heat output forinstantaneous water heaterseffective on and after January 1,2012.None NoneAdministrative RequirementsCertification requirements.None None

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Appendix E: Rule Consistency Analysis March 19, 2009



### E – 4 Final Draft Staff Report with Appendices For Proposed Amendments to Rule 4902 

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## 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 ame nded Rule 4902 (Residential Water Heaters). Interested persons ma y 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) 23 0-6005 or fax your request to Noemi Walther at (559) 230-6064. Please direct your ques tions concerning Rule 4902 to the Permit Services or Compliance Divisions in your reg ional 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

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