2 

Background 

The purpose of Proposed Amended Rule 1111 – NOx Emissions from Natural Gas-Fired, 

Fan type Central Furnaces (PAR 1111) is to reduce emissions of nitrogen oxides (NOx) 

from gas-fired fan-type residential furnaces. The rule applies to manufacturers, 

distributors, sales outlets and installers of gas-fired furnaces. Natural gas fired fan-type 

central furnaces are used in residential and small commercial buildings to provide 

comfort heating. 

Rule 1111 was adopted by the AQMD Governing Board in December 1978. Beginning 

January 1, 1984, the rule required residential furnaces to meet a NOx emission limit of 40 

nanograms per joule (ng/J) of heat output (equivalent to 55 ppm at 3% oxygen). The rule 

requires manufacturers to certify that the emissions of a furnace are below the rule limit 

before it can be installed in the District. At the time of adoption, the AQMD Board also 

considered a requirement that furnaces meet a 12 ng/J NOx emission limit by 1995. 

Rule 1111 was amended by the AQMD Board in July 1983 in order to place an upper 

limit on the size of equipment. The rule amendment limited applicability to furnaces 

with a heat input of less than 175,000 Btu per hour, or for combination heating and 

cooling units, a cooling rate of less than 65,000 Btu per hour. The 1983 amendment also 

revised the definition of efficiency, exempted units manufactured for use in mobile 

homes (manufactured housing), and clarified testing procedures. 

Proposed Amended Rule (PAR) 1111 is based on Control Measure CMB-03 of the 

AQMD 2007 Air Quality Management Plan (AQMP). Control Measure CMB-03 

proposed NOx emission reductions of 50 to 75 percent based on existing burner 

technologies that can achieve lower NOx emissions of 20 to 10 ng/J of heat output (30 to 

15 ppm) in residential appliances and other equipment. There are at least three types of 

burners that can achieve these lower emission levels and could potentially be employed 

in the redesign of these units. 

Public Process 

The rule development effort for PAR 1111 is part of an ongoing process to reevaluate 

low NOx technologies for combustion equipment. To date, AQMD staff has held seven 

Rule 1111 Task Force meetings to discuss burner technology, implementation issues and 

other topics with representatives from affected manufacturers, trade organizations and 

other interested parties. At these meetings, low NOx technology, emission limits, 

emission testing and compliance dates were discussed. In addition, a Public Workshop 

for PAR 1111 was held on September 9, 2009 and PAR 1111 was discussed at the 

Stationary Source Committee on September 25, 2009 and October 16, 2009. 

Affected Facilities 

Proposed Rule 1111 affects manufacturers and distributors, wholesalers, builders and 

installers of residential furnaces. The Air Conditioning Heating and Refrigeration 
3 

Institute (AHRI), the manufacturer’s trade organization, indicates that there are currently 

no manufacturers of fan-type gas-fired residential furnaces within the AQMD 

jurisdiction. However, these companies do maintain regional sales offices and 

distribution centers in the District. Manufacturers of mobile homes are also affected by 

PAR 1111. New mobile homes delivered to locations in the AQMD must have heating 

furnaces installed that comply with PAR 1111. 

Summary of Proposal 

The proposed amendments will establish a new NOx limit of 14 ng/J (20 ppm at 3% 

oxygen) for new furnaces, which reflects a 65% reduction from the current limit of 40 

ng/J. The three main categories of furnace, condensing, non-condensing and 

weatherized, must meet the 14 ng/J limit in 2014, 2015 and 2016 respectively. New 

mobile home units, which are currently unregulated, will be required to meet 40 ng/J in 

2012 and 14 ng/J in 2018. Because an average lifetime for a residential furnace in 

Southern California is about 20 to 25 years, replacement with 14 ng/J furnaces will not be 

completed until after 2043. 

In an effort to encourage the early introduction of the 14 ng/J units into the marketplace 

and provide manufacturers with a means of partially recovering their product 

development costs, PAR 1111 provides an incentive for early compliance. Specifically, 

manufacturers will be eligible to receive a rebate payment of $75 for each 14 nanograms 

per Joule standard efficiency furnace sold and delivered into the District 90 days prior to 

the applicable compliance date. Further, to promote the introduction of not just 

compliant but also more energy efficient units, the proposal offers manufacturers a rebate 

payment of $90 for each 14 ng/J high efficiency furnace (greater than or equal to 90 

percent annual fuel utilization efficiency) delivered and sold into the District 90 days 

prior to the compliance date. As funds are limited, payments for early compliance will be 

on a first come first served basis. PAR 1111 proposes a cap of $3,000,000 on early 

compliance rebates to all manufacturers. 

Because of industry’s concern regarding the proposed emission limits and compliance 

dates, the proposed rule also includes a requirement for staff to prepare a technology 

assessment by April 1, 2013 to determine if emission limits or compliance dates should 

be revised. In support of the technology assessment, AQMD staff is proposing to make 

available $1,000,000 to fund up to four projects that will develop prototypes of 14 ng/J 

furnaces. 

Further, PAR 1111 updates references to test methods, continues the AQMD program for 

manufacturers to certify the emission level of their products, and also provides more 

specificity in product labeling. To facilitate a smooth transition to the new units and 

allow depletion of existing equipment inventories, PAR 1111 also provides a temporary 

10 month sell through period for units meeting the current emission limit and delivered 

into the AQMD prior to the compliance date. 
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Emission Reductions and Cost Effectiveness 

Based on gas usage data from the California Energy Commission and the Southern 

California Gas Company, annual average NOx emissions from residential heating using 

natural gas were 9.7 tons per day in 2002 and estimated to be 11.1 tons per day in 2023 

(2007 AQMP). Based on an average equipment life of 20 to 25 years, the proposed rule 

is estimated to reduce annual average emissions of NOx by 2.5 to 3.1 tons per day in 

2023. It should be noted that because an average lifetime for a residential furnace in 

Southern California is about 20 to 25 years, replacement with 14 ng/J furnaces will not be 

completed until 2043 and the complete emission reduction benefit of this amendment is 

estimated to be about 6.8 tons per day (annual average). Since residential heating 

furnaces in Southern California are typically used between October and May, daily 

emissions and reductions for 2023 in these months can potentially be 5 to 6 tons per day. 

Staff estimates the cost effectiveness for PAR 1111 to be between $8,600 and $19,000 

per ton. 

Key Issues 

District staff received many comments on the proposed rule at the public workshop, 

consultation meeting, and working group meetings. In addition, attendees provided 

letters summarizing their comments at the workshop and other meetings. From these 

comments, the following key issues have been identified: (1) the compliance schedule 

and technology studies, (2) labeling requirements, (3) high efficiency units, and (4) an 

alternate compliance option. These key issues are summarized in Attachment B. 

AQMP and Legal Mandates 

The California Health and Safety Code requires the AQMD to adopt an Air Quality 

Management Plan to meet state and federal ambient air quality standards and adopt rules 

and regulations that carry out the objectives of the AQMP. The Health and Safety Code 

also requires the AQMD to implement all feasible measures to reduce air pollution. This 

proposed amendment of Rule 1111 implements Control Measure CMB-03 of the 2007 

AQMP to further reduce NOx emissions. The NOx reductions from this proposed rule 

amendment will help achieve compliance with federal and state ambient air quality 

standards for ozone, PM10 and PM2.5. 

California Environmental Quality Act (CEQA) Analysis 

Pursuant to California Environmental Quality Act (CEQA) Guidelines § 15252 and 

AQMD Rule 110, the AQMD has prepared an Environmental Assessment (EA) for 

proposed amended Rule 1111. The Draft EA was released for a 30-day public review 

and comment period from September 24, 2009 to October 23, 2009. No comment letters 

were received from the public regarding the Draft EA. The environmental analysis in the 
5 

Draft EA concluded that proposed amended Rule 1111 would not generate any 

significant adverse environmental impacts. 

Since the release of the Draft EA, minor modifications have been made to the document. 

However, none of the modifications alter any conclusions reached in the Draft EA, nor 

provide new information of substantial importance relative to the draft document. As a 

result, these minor revisions do not require recirculation of the Draft EA pursuant to 

CEQA Guidelines § 15073.5. Therefore, the Draft EA is now a Final EA and is included 

as an attachment to this Governing Board package. 

Socioeconomic Analysis 

The proposed amendments would affect manufacturers, distributors, and installers of 

natural-gas-fired, fan-type central furnaces. No manufacturers are located in the fourcounty area. Residential and commercial property owners and new construction builders 

would also be affected. About 180,000 furnaces are replaced or installed in the District 

each year. The proposed rule will increase the cost of a furnace by about $174. The 

average annual cost (from 2011 to 2025) of the proposed amendments is projected to be 

$30.4 million, of which residential and commercial property owners would incur $22.9 

million (75 percent) due to projected higher cost. It is estimated that an average of 221 

jobs would be forgone annually across all industries in the four-county area, which is 

0.002 percent of the average baseline jobs during the same period. 

Resource Impacts

Existing staff resources are adequate to implement the proposed amendments. 

Attachments 

A. Summary of Proposal 

B. Key Issues and Responses 

C. Rule Development Process 

D. Key Contacts List 

E. Resolution 

F. Proposed Amended Rule 

G. Final Staff Report with Socioeconomic Impact Assessment 

H. Final Environmental Assessment 
ATTACHMENT A 

SUMMARY OF PROPOSAL 

Proposed Amended Rule 1111 – NOx Emissions from Natural Gas-Fired, Fan type 

Central Furnaces 

• Establish a NOx emission limit of 40 ng/Joule (55 ppm) for the currently exempt mobile 

home furnaces on October 1, 2012 

• Lower the NOx emission limit to 14 ng/Joule (20 ppm) for residential type furnaces: 

o Condensing Furnaces on October 1, 2014 

o Non-Condensing Furnaces on October 1, 2015 

o Weatherized Furnaces on October 1, 2016 

o Mobile Home Furnaces on October 1, 2018 

• Allow a ten month sell through period 

• Update test method references 

• Clarify labeling requirements 

• Provide a financial incentive for early compliance ($75 per unit and $90 for high efficiency 

units up to $3,000,000) 

• Require a technology assessment by April 1, 2013 
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ATTACHMENT B 

KEY ISSUES AND RESPONSES 

Proposed Amended Rule 1111 – NOx Emissions from Natural Gas-Fired, Fan type 

Central Furnaces 

Issue – Compliance Schedule and Technology Studies: Manufacturers requested 

compliance dates beyond 2012 for any new proposed standard. In addition, they 

requested that rule adoption be delayed until after completion of a joint technology 

assessment that would be funded by manufacturers, AQMD and The Gas Company. 

Response: In the 2007 AQMP, the AQMD committed to amending Rule 1111 by 2009 

and phasing in reductions beginning 2012. PAR 1111 provides additional time beyond 

the schedule proposed in the 2007 AQMP. The first compliance date is October 1, 

2014 and other dates are phased in over seven years which allows manufacturers five 

additional years or more to design, test and market equipment that will meet the 

proposed limit. Therefore, staff believes the proposed schedule is reasonable and 

provides manufacturers with adequate time to manufacture compliant products. 

 In addition, staff’s regulatory proposal is accompanied by several incentives and 

safeguards. For example, in an effort to facilitate research and product development 

efforts, staff proposes to provide funding up to $1,000,000 to support up to four 

projects that will develop prototypes of 14 ng/J furnaces. In addition, PAR 1111 

commits staff to conduct a technology assessment and present it to the Board by April 

1, 2013 to assess manufacturers’ progress towards meeting the lower NOx limit and 

compliance schedule. To encourage and accelerate the early introduction of units 

complying with the 14 ng/J limit, and provide the manufacturer with a means of 

partially recovering their research and product development costs, the proposed rule 

also provides significant financial incentives for early compliance. Specifically the 

rule provides a rebate payment of $75 per standard unit and $90 for each high 

efficiency unit, up to $3,000,000, for early compliance. 

Issue – Labeling Requirements: The labeling requirements in the rule are not needed. 

Response: The labeling requirements in the current rule were adopted in 1978. The 

proposed labeling requirements in PAR 1111 are based upon the AQMD’s experience 

regulating residential water heaters, commercial water heaters and small boilers, and 

paints and solvents. Because there are four categories of furnaces affected by PAR 

1111 and distributors and sellers could have in stock 40 ng/J units allowed under the 

sell-through provision, compliant 14 ng/J units, and non-certified units that cannot be 

sold for use in the District, it is crucial that company owners, company employees, 
8 

installers, builders, homeowners and AQMD compliance staff can easily identify units 

that may be sold for use and installed in the District. 

Issue – High Efficiency Units: High efficiency condensing furnaces may suffer a loss in 

sales because they must comply with the emission limit first. 

Response: High efficiency will likely be the first category to benefit from the early 

compliance incentive. The early compliance incentive will significantly reduce 

potential price increases and will provide manufacturers with the opportunity to offset 

their research and development costs appreciably. Additionally, to further promote 

high efficiency units, AQMD staff has revised PAR 1111 to increase the incentive for 

high efficiency condensing furnaces to $90 for each furnace sold and delivered to the 

District 90 days prior to the compliance date. In addition, it will be easier for high 

efficiency units to meet the emission limit because it is based on heat output. 

Issue – Alternate Compliance and Mitigation Fee Option: The alternative compliance 

and mitigation fee option should be reinserted into the staff proposal in its modified 

form by staff for compliance flexibility. 

Response: In the Preliminary Draft Rule and Staff Report released in August 2009, staff 

proposed an alternate compliance option that allowed manufacturers to delay 

compliance up to three years and pay emission mitigation fees of $213 for each 

furnace. In response to comments from industry regarding the high cost of the 

mitigation fee, staff revised the proposed mitigation fee and presented it at the 

September 25, 2009 Stationary Source Committee of the AQMD Governing Board as 

follows: 

Alternate Compliance Mitigation Fees

Furnace Emissions (ng/J) Mitigation Fee * 

($) 

31 to 40 $140

26 to 30 $85

20 to 25 $60

< 20 $35

* At least 10% reduction for high efficiency units 

 However, based on the lack of support by the regulated community for this modified 

mitigation fee at the committee meeting, staff removed it from its proposal and 
9 

proposed to replace it with the technology assessment and financial incentives. Staff is 

committed to revisit the mitigation fee option as part of the technology assessment in 

2013. Industry supports the technology assessment and incentives but now argues for 

inclusion of the alternate compliance option as revised by staff for additional 

flexibility. 
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ATTACHMENT C 

RULE DEVELOPMENT PROCESS 

Proposed Amended Rule 1111 – 

Twenty (20) months spent in rule development. 

Initial Rule Development 

March 2008 

Set Public Hearing: October 2, 2009 

CEQA Draft EA Released for 

30-Day Review 

Release Date: September 24, 2009 

Public Hearing: November 6, 2009 

, 2004

• Seven Task Force Meetings (May 2008 to October 2009) 

• Public Workshop: September 9, 2009 

• Stationary Source Committee Briefings: September 25, 

2009 and October 16, 2009 

Approximately 1,050 notices of the public workshop were 

mailed to manufacturers, the Air Conditioning Heating and 

Refrigeration Institute (AHRI), other trade associations, 

equipment suppliers, equipment installers and interested parties. 
11 

ATTACHMENT D 

KEY CONTACTS LIST 

Air Conditioning, Heating and Refrigeration Institute (AHRI) 

Amana/Goodman 

Bekaert 

California Air Resources Board (CARB) 

Carrier/ICP 

DOE 

Lawrence Berkeley National Laboratory 

Lennox/Ducane 

Nordyne 

Rheem 

SEMPRA/The Gas Company 

Trane 

USEPA 

York/Coleman 
ATTACHMENT E 

RESOLUTION NO. - 

A Resolution of the Governing Board of the South Coast Air Quality 

Management District (AQMD) certifying the Final Environmental Assessment for 

Proposed Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, FanType Central Furnaces.

A Resolution of the AQMD Governing Board amending Rule 1111 - 

NOx Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces. 

WHEREAS, the AQMD Governing Board has determined with certainty 

that Proposed Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, FanType Central Furnaces, is a “project” pursuant to the California Environmental Quality 

Act (CEQA); and 

WHEREAS, the AQMD has had its regulatory program certified pursuant 

to Public Resources Code Section 21080.5 and has conducted CEQA review and 

analysis pursuant to such program (AQMD Rule 110); and 

WHEREAS, AQMD staff has prepared a Draft Environmental 

Assessment (EA) pursuant to its certified regulatory program and CEQA Guidelines 

Section 15252, setting forth the potential environmental consequences of Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces; and 

WHEREAS, it was determined that potential environmental impacts from 

the proposed project are not significant; and 

WHEREAS, the Draft EA was circulated for a 30-day public review and 

comment period from September 24, 2009, to October 23, 2009, no comment letters 

were received relative to the Draft EA, and the Draft EA has been revised such that it is 

now a Final EA; and 

WHEREAS, it is necessary that the adequacy of the Final EA be 

determined by the AQMD Governing Board prior to its certification; and 

WHEREAS, the AQMD Governing Board voting on Proposed Amended

Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces has 

reviewed and considered the Final EA prior to its certification; and 
2 

WHEREAS, a Mitigation Monitoring Plan pursuant to Public Resources 

Code Section 21081.6, has not been prepared since no mitigation measures are 

necessary; and 

WHEREAS, because the proposed project was determined to generate no 

significant adverse impacts on the environment, a Statement of Findings and a 

Statement of Overriding Considerations were not required and, thus, not adopted for this 

project pursuant to CEQA Guidelines Sections 15091 and 15093, respectively; and 

WHEREAS, the AQMD Governing Board finds and determines, taking 

into consideration the factors in Section (d)(4)(D) of the Governing Board Procedures, 

that the modifications which have been made to Proposed Amend Rule 1111 - NOx 

Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces since notice of public 

hearing was published do not significantly change the meaning of the proposed project 

within the meaning of Health and Safety Code Section 40726 and would not constitute 

significant new information requiring recirculation of the Draft CEQA document 

pursuant to CEQA Guidelines Section 15073.5; and 

WHEREAS, California Health and Safety Code Section 40727 requires 

that prior to adopting, amending or repealing a rule or regulation, the AQMD Governing

Board shall make findings of necessity, authority, clarity, consistency, non-duplication, 

and reference based on relevant information presented at the public hearing and in the 

staff report; and 

WHEREAS, the AQMD Governing Board obtains its authority to adopt, 

amend, or repeal rules and regulations from Sections 39002, 40000, 40001, 40440, 

40441, 40702, 40725 through 40728, and 41508 of the California Health and Safety 

Code; and 

WHEREAS, the AQMD Governing Board has determined that there is a 

problem that Proposed Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces will help alleviate, in that the South Coast Air Basin does 

not meet federal and state ambient air quality standards for ozone and particulate matter 

and Proposed Rule 1111 will promote attainment of these standards; and 

WHEREAS, the AQMD Governing Board has determined that a need 

exists to amend Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces to reduce emissions of nitrogen oxides which are a precursor to ozone and 

particulate matter; and 

WHEREAS, the AQMD Governing Board has determined that Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 
3 

Furnaces is written or displayed so that its meaning can be easily understood by the 

persons directly affected by it; and 

WHEREAS, the AQMD Governing Board has determined that Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces is in harmony with, and not in conflict with or contradictory to, existing 

federal or state statutes, court decisions, or federal regulations; and 

WHEREAS, the AQMD Governing Board has determined that Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces does not impose the same requirements as any existing state or federal 

regulation and the proposed amended rule is necessary and proper to execute the powers 

and duties granted to, and imposed upon, the District; and 

WHEREAS, the AQMD Governing Board in amending Rule 1111 

references the following statutes which the AQMD hereby implements, interprets or 

makes specific: Health and Safety Code Section 40001(a) (rules to meet air quality 

standards); Section 40440(a) (rules to carry out the plan); and Section 40702 (adoption 

of rules and regulations); and 

WHEREAS, Health and Safety Code Section 40727.2 requires the AQMD 

to prepare a written analysis of existing federal and state air pollution control 

requirements that the AQMD is aware of and that would be applicable to the same 

source type being regulated whenever it adopts, or amends a rule, and that such 

comparative analysis is included in the staff report; and 

WHEREAS, the AQMD Governing Board has determined that the 

Socioeconomic Impact Assessment of the Proposed Amended Rule 1111 - NOx 

Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces is consistent with the 

March 17, 1989 and October 14, 1994 Governing Board Socioeconomic Resolutions for 

rule adoption; and 

WHEREAS, the AQMD Governing Board has determined that the 

Socioeconomic Impact Assessment of Proposed Amended Rule 1111 - NOx Emissions 

From Natural-Gas-Fired, Fan-Type Central Furnaces is consistent with the provisions of 

Health and Safety Code Sections 40440.5, 40440.8 and 40728.5; and 

WHEREAS, the AQMD Governing Board has reviewed and considered 

the staff's findings related to cost and other socioeconomic impacts of Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces set forth in the Socioeconomic Impact Assessment made public with the 

agenda package for this meeting; and 
4 

WHEREAS, the AQMD Governing Board has determined that Proposed 

Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces may result in increased costs to the industry, which is considered to be 

reasonable; and

WHEREAS, the AQMD Governing Board has actively considered the 

Socioeconomic Impact Assessment and has made a good faith effort to minimize such 

impacts; and

WHEREAS, a public hearing has been properly noticed in accordance 

with the provisions of Health and Safety Code Section 40725; and 

WHEREAS, the AQMD Governing Board has held a public hearing in 

accordance with all provisions of law; and 

WHEREAS, the AQMD Governing Board specifies the Manager of

Proposed Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type 

Central Furnaces as the custodian of the documents or other materials which constitute 

the record of proceedings upon which the adoption of this proposed project is based, 

which are located at the South Coast Air Quality Management District, 21865 Copley 

Drive, Diamond Bar, California; and 

NOW, THEREFORE BE IT RESOLVED, that the AQMD Governing 

Board hereby certifies, pursuant to the authority granted by law, the Final EA for 

Proposed Amended Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type 

Central Furnaces; and 

BE IT FURTHER RESOLVED, that because no significant adverse 

environmental impacts were identified as a result of implementing Proposed Amended 

Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces, a 

Statement of Findings, a Statement of Overriding Considerations, and a Mitigation 

Monitoring Plan are not required; and 

BE IT FURTHER RESOLVED, that the AQMD Governing Board, in 

an effort to promote early compliance with the emission limits of Proposed Amended 

Rule 1111 - NOx Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces, 

allocates up to Three Million Dollars ($3,000,000) of Rule 1121 mitigation program and 

variance fees to provide rebate payments to manufacturers that sell compliant units in 

the South Coast Air Quality Management District ahead of the applicable compliance 

dates, and up to One Million Dollars ($1,000,000) for contracts to further develop 

technology for compliance with the rule; and 
5 

BE IT FURTHER RESOLVED, that the AQMD Governing Board 

hereby directs staff to issue no later than March 31, 2010, a Request for Proposal (RFP) 

in an amount of up to One Million Dollars ($1,000,000) to develop a natural gas fired, 

fan-type central furnace compliant with the 14 nanograms per joule NOx limit that 

conforms with all applicable safety requirements; and 

BE IT FURTHER RESOLVED, that AQMD staff is directed to return 

to the Board with recommendations to award contract(s) for the development of 

compliance furnaces no later than July 1, 2010, and for such work to be completed 

within a 2-year time period; and 

BE IT FURTHER RESOLVED, that the AQMD Governing Board does 

hereby amend, pursuant to the authority granted by law, Rule 1111 - NOx Emissions 

From Natural-Gas-Fired, Fan-Type Central Furnaces, as set forth in the attached and 

incorporated herein by reference. 

Dated: 

 Clerk of the District Board
PAR 1111 - 1 

(Adopted December 1, 1978)(Amended July 8, 1983)(Date of Amendment)

RULEPAR 1111. REDUCTION OF NOx EMISSIONS FROM NATURAL-GASFIRED, FAN-TYPE CENTRAL FURNACES

(a) Purpose and Applicability

 The purpose of this rule is to reduce NOx emissions from natural gas-fired, fantype central furnaces, as defined in this rule. This rule applies to manufacturers, 

distributors, sellers and installers of residential and commercial fan-type central 

furnaces, requiring either single-phase or three-phase electric supply, used for 

comfort heating with a rated heat input capacity of less than 175,000 BTU per 

hour;, or, for combination heating and cooling units, a cooling rate of less than

65,000 BTU per hour. 

(ab) Definitions 

(1) ANNUAL FUEL UTILIZATION EFFICIENCY (AFUE) is defined in 

Section 10.1 of Code of Federal Regulations, Title 10, Part 430, Subpart 

B, Appendix N.

(2) BTU means British thermal unit or units.

(3) CONDENSING FURNACE means a high-efficiency furnace that uses a 

second heat exchanger to extract the latent heat in the flue gas by cooling 

the combustion gasses to near ambient temperature so that water vapor 

condenses in the heat exchanger, is collected and drained.

(14) FAN TYPE CENTRAL FURNACEan Type Central Furnace is a selfcontained space heater providing for circulation of heated air at pressures 

other than atmospheric through ducts more than 10 inches in length that 

have: 

(A) an input rate RATED HEAT INPUT CAPACITY of less than 

175,000 BTU/ per hour; or 

(B) for combination heating and cooling units, a cooling rate of less 

than 65,000 BTU/ per hour. 

(2) Annual Fuel Utilization Efficiency (AFUE) is defined in Section 4.2.35 of 

Code of Federal Regulations, Title 10, Part 430, Subpart B, Appendix N.

(5) HEAT INPUT means the higher heating value of the fuel to the furnace

measured as BTU per hour. 
Proposed Amended Rule 1111 (Cont.) (Date of Amendment) 

PAR 1111 - 2

(6) NOx EMISSIONS means the sum of nitrogen oxide and nitrogen dioxide

(oxides of nitrogen) in the flue gas, collectively expressed as nitrogen 

dioxide. 

(7) RATED HEAT INPUT CAPACITY means the gross HEAT INPUT of the 

combustion device. 

(8) RESPONSIBLE OFFICIAL means: 

(A) For a corporation: a president or vice-president of the corporation 

in charge of a principal business function or a duly authorized 

person who performs similar policy-making functions for the 

corporation, or 

(B) For a partnership or sole proprietorship: general partner or 

proprietor, respectively,. 

(9) SINGLE FIRING RATE means the burners and control system are 

designed to operate at only one fuel input rate and the control system 

cycles burners between the maximum heat output and no heat output.

(310) USEFUL HEAT DELIVERED TO THE HEATED SPACEseful Heat 

Delivered to the Heated Space is the AFUE (expressed as a fraction) 

multiplied by the heat input. 

(11) VARIABLE FIRING RATE means the burners and control system are

designed to operate at more than one fuel input rate and the control system 

cycles burners between two or more heat output rates and no heat output.

(12) WEATHERIZED means designed for installation outside of a building, 

equipped with a protective jacket and integral venting, and labeled for 

outdoor installation.

(bc) Requirements 

(1) A manufacturer shall not, after January 1, 1984, manufacture or supply for 

sale or use in the South Coast Air Quality Management District naturalgas-fired, fan-type central furnaces, unless such furnaces meet the 

requirements of subparagraph (c)(3). 

(2) A person shall not, after April 2, 1984, sell or offer for sale within the 

South Coast Air Quality Management District natural-gas-fired, fan-type 

central furnaces unless such furnaces meet the requirements of 

subparagraph (c)(3). 
Proposed Amended Rule 1111 (Cont.) (Date of Amendment) 

PAR 1111 - 3

(3) Natural-gas-fired, fan-type central furnaces shall: 

(A) not emit more than 40 nanograms of oxides of nitrogen (calculated 

as NO2) per joule of useful heat delivered to the heated space; and 

(B) be certified in accordance with paragraph subdivision (cd) of this 

rule. 

(4) On or after October 1, 2012, a person shall not manufacture, supply, sell, 

offer for sale, or install, for use in the South Coast Air Quality 

Management District, natural-gas-fired, fan-type central furnaces subject 

to this rule, unless such furnace complies with the applicable emission 

limit and compliance date set forth in Table 1 and is certified in 

accordance with subdivision (d) of this rule. 

Table 1 – Furnace NOx Limits and Compliance Schedule

* Nanograms of oxides of nitrogen (calculated as NO2) per joule of useful heat delivered to the 

heated space

(cd) Certification 

(1) The manufacturer shall have each appliance model tested in accordance 

with the following: 

(A) Oxides of nitrogen measurements, test equipment, and other 

required test procedures shall be in accordance with methods 

approved by the Executive Officer AQMD Method 100.1. 

(B) Operation of the furnace shall be in accordance with the procedures 

specified in Section 3.14.0 of Code of Federal Regulations, Title 

10, Part 430, Subpart B, Appendix N. 

Compliance Date Equipment Category NOx Emission Limit 

(nanograms/Joule *)

October 1, 2012 Mobile Home Furnace 40

October 1, 2014 Condensing Furnace 14

October 1, 2015 Non-condensing Furnace 14

October 1, 2016 Weatherized Furnace 14

October 1, 2018 Mobile Home Furnace 14
Proposed Amended Rule 1111 (Cont.) (Date of Amendment) 

PAR 1111 - 4

(2) One of the two formulas shown below shall be used to determine the 

nanograms of oxides of nitrogen per joule of useful heat delivered to the 

heated space: 

 N = 4.566 x 104 x P x U, N = 3.655 x 1010 x P

 H x C x E (20.9-Y) x Z x E 

 Where: 

 N = nanograms of emitted oxides of nitrogen per joule of useful 

heat. 

 P = concentration (ppm volume) of oxides of nitrogen in flue 

gas as tested. 

 U = volume percent CO2 in water-free flue gas for stoichiometric 

combustion. 

 H = gross heating value of fuel, BTU/cu.ft. (60oF, 30-in. Hg). 

 C = measured volume percent of CO2 in water-free flue gas, 

assuming complete combustion and no CO present. 

 E = AFUE, percent (calculated using Table 2). 

 Y = volume percent of O2 in flue gas. 

 Z = heating value of gas, joules/cu. meter (0.0oC, 1 ATM). 

(3) At least 120 days prior to the date a furnace model is first shipped to a 

location in the AQMD for use in the District, Tthe manufacturer shall 

submit to the Executive Officer the following: 

(A) A statement that the model is in compliance with 

subsectiondivision (bc). (The statement shall be signed by a 

responsible official and dated, and shall attest to the accuracy of all 

statements.) 

(B) General Information 

 (i) Name and address of manufacturer. 

 (ii) Brand name. 

 (iii) Model number, as it appears on the furnace rating plate. 

(C) A description of the furnace and specifications for each model 

being certified. 
Proposed Amended Rule 1111 (Cont.) (Date of Amendment) 

PAR 1111 - 5

(D) Executive Officer approved emission test protocol and emission 

test results verifying compliance with the applicable NOx limit 

specified in Table 1.

(de) Identification of Compliant Units

(1) The manufacturer shall display the model number of the furnace 

complying with subsectiondivisions (bc) and (d) shall display the 

following on the shipping cartonontainer label and rating plate. of the 

furnace: 

(A) Model number;

(B) Heat input capacity;

(C) ApplicableCertified NOx emission levellimit in Table 1; and

(D) Date of manufacture or date code.

(2) Any non-certified furnace shipped to a location in the South Coast Air 

Quality Management District for distribution or sale outside of the District 

shall have a label on the shipping container identifying the furnace as not 

certified for use in the District.

(ef) Enforcement 

(1) The Executive Officer may require the emission test results to be provided 

when deemed necessary to verify compliance.

(2) The Executive Officer may periodically conduct such tests as are deemed 

necessary to insureensure compliance with subsectiondivision (bc), (d), (e) and 

(h). 

(fg) Exemptions 

(1) The provisions of this rule shall not apply to furnaces installed in mobile 

homes before October 1, 2012. 

(2) The provisions of this rule shall not apply to natural-gas-fired, fan-type 

central furnaces utilizing three-phase electrical current until January 1, 

1986.

(2) For furnaces manufactured, purchased and delivered to the South Coast 

Air Quality Management District prior to the applicable compliance date 

in Table 1, any person may, until 300 days after the applicable compliance 

date, sell, offer for sale, or install such a furnace in the District, so long as 
Proposed Amended Rule 1111 (Cont.) (Date of Amendment) 

PAR 1111 - 6

the furnace meets the requirements of paragraph (c)(3) and subdivisions 

(d) and (e).

(h) Rebate Incentives for Early Compliance

Any manufacturer of natural gas-fired, fan-type central furnaces subject to this 

rule thatand distributes orand sells into the District furnaces that comply with the 

14 nanograms/Joule emission limit 90 days prior to the applicable compliance 

date in Table 1 of paragraph (c)(4) may submit a compliance plan for early 

compliance to the Executive Officer and to receive on a first-come first-served 

basis from the AQMD a rebate payment of $75 for each 14 nanograms/ per Joule 

certified furnace and $90 for each high efficiency 14 nanograms/Joule certified 

furnace with AFUE of 90% or greater distributed andor sold into the District,

prior to the applicable compliance date provided funds are available on the date 

documentation onf the number of units distributed andor sold is submitted to the 

AQMD. Total rebate payments to all manufacturers shall not exceed $3,000,000.

(i) Technology Assessment

On or before April 1, 2013, the Executive Officer shall conduct a technology 

assessment and shall report to the Governing Board on the status of 

manufacturers’ progress towards compliance with the 14 nanograms/ per Joule 

emission limit for nitrogen oxidees. 
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 

Staff Report 

Proposed Amended Rule 1111 – NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces 

October 28, 2009 

Deputy Executive Officer 

Planning, Rule Development, and Area Sources 

Elaine Chang, Dr. PH 

Assistant Deputy Executive Officer 

Planning, Rule Development, and Area Sources 

Laki Tisopulos, Ph.D., P.E. 

Planning and Rules Manager 

Planning, Rule Development, and Area Sources 

Joe Cassmassi 

Author: Wayne Barcikowski – Air Quality Specialist 

 

Reviewed by: Gary Quinn, P.E. – Program Supervisor 

 Ruby Fernandez – Deputy District Counsel II 

 
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 

GOVERNING BOARD 

Chairman: WILLIAM A. BURKE, Ed.D. 

Speaker of the Assembly Appointee 

Vice Chairman: DENNIS YATES 

Mayor, City of Chino 

 Cities Representative, San Bernardino County 

MEMBERS:

 MICHAEL D. ANTONOVICH 

 Supervisor, Fifth District 

 Los Angeles County Representative 

MARION ASHLEY 

 Supervisor, Fifth District 

 Riverside County Representative 

MICHAEL CACCIOTI

 Council Member, City of South Pasadena 

Cities Representative, Los Angeles County/Eastern Region 

 BILL CAMPBELL 

 Supervisor, Third District 

 Orange County Representative 

 JANE W. CARNEY 

 Senate Rules Committee Appointee 

JOSIE GONZALES 

 Supervisor, Fifth District 

 San Bernardino County Representative 

RONALD O. LOVERIDGE 

 Mayor, City of Riverside 

 Cities Representative, Riverside County 

JOSEPH K. LYOU, PH.D.

Governor’s Appointee 

 JAN PERRY

 Council Member, City of Los Angeles 

City of Los Angeles 

MIGUEL PULIDO 

 Mayor, City of Santa Ana 

 Cities Representative, County of Orange 

 TONIA REYES URANGA 

 Council Member, City of Long Beach 

 Cities Representative, Los Angeles County/Western Region 

EXECUTIVE OFFICER:

BARRY R. WALLERSTEIN, D.Env. 
 i 

 TABLE OF CONTENTS 

TABLE OF CONTENTS i 

EXECUTIVE SUMMARY ES-1 

CHAPTER 1: BACKGROUND 

INTRODUCTION 1-1 

REGULATORY HISTORY 1-1 

EQUIPMENT AND PROCESS 1-1 

TECHNOLOGY ASSESSMENT 1-3 

AFFECTED INDUSTRIES 1-5 

PUBLIC PROCESS 1-5 

CHAPTER 2: SUMMARY OF PROPOSED AMENDED RULE 1111 

AQMP CONTROL MEASURE 2-1 

PROPOSED AMENDED RULE REQUIREMENTS 2-1 

CHAPTER 3: IMPACT ASSESSMENT 

IMPACT ANALYSIS 3-1 

COST EFFECTIVENESS 3-2 

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) ANALYSIS 3-3 

SOCIOECONOMIC ASSESSMENT 3-3 

DRAFT FINDINGS UNDER CALIFORNIA HEALTH AND SAFETY 

 CODE SECTION 40727 3-3 

INCREMENTAL COST EFFECTIVENESS 3-4 

COMPARATIVE ANALYSIS 3-4 

RESPONSE TO COMMENTS 4-1 

REFERENCES 

APPENDIX A 
EXECUTIVE SUMMARY 
PAR 1111 Staff Report

 ES -1 October 28, 2009 

EXECUTIVE SUMMARY 

Proposed Amended Rule 1111 (PAR 1111) is designed to reduce NOx emissions from fan type 

gas-fired residential furnaces. Natural gas fired fan-type central furnaces are used in residential 

and commercial buildings to provide comfort heating. Rule 1111 regulates manufacturers, 

distributors, sales outlets and installers of residential furnaces with a heat input rate less than 

175,000 British thermal units per hour (Btu/hr) or, for combination heating and cooling units, a 

cooling rate of less than 65,000 Btu/hr. 

PAR 1111 is based on Control Measure CMB-03 of the 2007 Air Quality Management Plan 

(AQMP). Control Measure CMB-03 proposed NOx emission reductions of 50 to 75 percent by 

requiring furnaces to meet a NOx emission limit of between 10 to 20 nanograms per Joule (ng/J) 

of heat output (15 to 30 ppm at 3% oxygen). 

In line with Control Measure CMB-03 objectives, PAR 1111 seeks to establish a new limit of 14 

ng/J (20 ppm at 3% oxygen) for new furnaces, which reflects a 65% reduction from the current 

limit of 40 ng/J. The three main categories of furnace, condensing, non-condensing and 

weatherized, must meet the 14 ng/J limit in 2014, 2015 and 2016 respectively. New mobile 

home units, which are currently unregulated, will have to meet 40 ng/J in 2012 and 14 ng/J in 

2018. Because an average lifetime for a residential furnace in Southern California is about 20 to 

25 years, replacement with 14 ng/J furnaces will not be completed until after 2043. 

While low NOx burners with emissions less than 20 ng/J are not currently used in residential 

furnaces, they are technology is used in many other applications such as residential water 

heaters, boilers and commercial and industrial air heating applications. New burners to be 

developed for use in residential furnaces are likely to use improved premixing, increased primary 

combustion air and increased excess air. A burner developed for residential furnaces by the Gas 

Research Institute uses these technologies to reduce NOx emissions below 30 ppm (U.S. Patent 

6,071,115). Another burner developed at Lawrence Berkeley National Laboratory uses these 

techniques and staged combustion and can achieve NOx emission levels as low as 10 ppm 

(http://eetd.lbl.gov/aet/combustion/LSC-info/). An alternative approach to reduce NOx 

emissions to as low as 10 ng/J (15 ppm) can be the use of increased surface area (a metal screen, 

fiber, or slotted burner surface) combined with premixing and increased excess air. Two burners 

currently used in residential tank type water heaters sold in the AQMD use this technology. 

AQMD staff expects many of the aforementioned low NOx burners and combustion techniques 

utilized in other residential and commercial applications, as well as laboratory prototypes, will 

successfully be adapted in developing and producing low NOx residential furnaces.

PAR 1111 makes a number of other changes to the rule. PAR 1111 updates references to test 

methods for determining compliance with rule emission limits and continues the AQMD 

program for manufacturers to certify the emission level of their products. It also provides more 

specificity in the labeling requirements. To facilitate the depletion of existing inventories and to 

ensure smooth transition to the new limits, PAR 1111 also provides a temporary 10 month 

exemption (a sell through period) for units manufactured before the compliance date and 

delivered into the AQMD prior to the compliance date. 
PAR 1111 Staff Report

 ES -2 October 28, 2009 

 

PAR 1111 also provides an incentive for early compliance with the 14 nanograms per Joule 

emission limit. Companies that deliver low NOx standard efficiency units into the District prior 

to the compliance date can elect to will receive a payment of $75 for each 14 nanograms per 

Joule furnace delivered and sold into the District 90 days prior to the applicable compliance date. 

Manufacturers of high efficiency units (greater than or equal to 90 percent annual fuel utilization 

efficiency) will receive a payment of $90 for each high efficiency 14 ng/J furnace delivered and 

sold into the District 90 days prior to the compliance date. This early compliance program will 

be funded by the AQMD Rule 1121 Mitigation Program which provides money for NOx 

reduction programs in the District. As funds are limited, payments for early compliance will be 

on a first come first served basis. PAR 1111 proposes a cap of $3,000,000 on early compliance 

rebates to all manufacturers. 

Because of industry’s concern regarding PAR 1111 compliance dates, the proposed rule also 

includes a requirement for staff to prepare a technology assessment by April 1, 2013 to 

determine if emission limits or compliance dates should be revised. The technology assessment 

is also meant to address a lack of interest in an earlier proposal that would have allowed 

manufacturers to delay compliance up to three years and pay mitigation fees for each noncompliant unit shipped into the District after the compliance date. The mitigation fees collected 

by the AQMD were to be used to fund NOx emission reductions from other sources. 

There are over four million residential type heating furnaces in the AQMD. A typical furnace 

emits more than one and a half pounds of NOx per year. PAR 1111 will reduce emissions from 

an individual furnace by more than one pound per year. Based on a 20 to 25 year equipment life, 

Tthe proposed rule is estimated to reduce annual average emissions of NOx by 2.5 to 3.1 tons per 

day in 2023. It should be noted that because an average lifetime for a residential furnace in 

Southern California is about 20 to 25 years, replacement with 14 ng/J furnaces will not be 

completed until 2043 and the complete emission reduction benefit of this amendment is 

estimated to be about 6.8 tons per day (annual average). Since residential heating furnaces in 

Southern California are typically used between October and May, daily emissions and reductions 

for 2023 in these months can potentially be 5 to 6 tons per day. Staff estimates the cost 

effectiveness for PAR 1111 to be between $8,600 and $19,000 per ton with an increased cost to 

the consumer of between $108 to $240 per furnace. 
 

CHAPTER 1: BACKGROUND 

INTRODUCTION 

REGULATORY HISTORY 

EQUIPMENT AND PROCESS 

TECHNOLOGY ASSESSMENT 

AFFECTED INDUSTRIES 

PUBLIC PROCESS 
PAR 1111 Staff Report

 1 - 1 October 28, 2009 

INTRODUCTION 

The purpose of Proposed Amended Rule 1111 – NOx Emissions from Natural Gas-Fired, Fan 

type Central Furnaces (PAR 1111) is to reduce emissions of nitrogen oxides (NOx) from gasfired fan-type residential furnaces. The rule regulates manufacturers, distributors, sales outlets 

and installers of gas-fired furnaces. Natural gas fired fan-type central furnaces are used in 

residential and small commercial buildings to provide comfort heating. Most single family 

homes and many multiunit residences in the South Coast Air Quality Management District 

(AQMD) use this type of heating equipment. Typically, residential gas-fired furnaces have 

burners with a heat input rating between 50,000 and 175,000 British thermal units per hour 

(Btu/hr). 

REGULATORY HISTORY 

Rule 1111 was passed by the AQMD Governing Board in December 1978. Beginning January 

1, 1984, the rule required residential furnaces to meet a NOx emission limit of 40 nanograms per 

joule (ng/J) of heat output (equivalent to 55 ppm at 3% oxygen). The rule also requires 

manufacturers to obtain certification of each furnace model based on source testing using 

specific test methods identified in the rule and approved by the District. In addition, the rule 

requires manufacturers to identify the model number of the furnace on a permanent rating plate 

and the shipping container. At the time of adoption, the AQMD Board also considered a 

requirement that furnaces meet a 12 ng/J NOx emission limit by 1995. 

Rule 1111 was amended by the AQMD Board in July 1983 in order to place an upper limit on 

the size of equipment and limit applicability to units used in residences and small commercial 

buildings. The rule amendment limited applicability to furnaces with a heat input of less than 

175,000 Btu per hour, or for combination heating and cooling units, a cooling rate of less than 

65,000 Btu per hour. The 1983 amendment also revised the definition of efficiency, exempted 

units manufactured for use in mobile homes (manufactured housing), and clarified testing 

procedures. 

PAR 1111 is based on Control Measure CMB-03 of the AQMD 2007 Air Quality Management 

Plan (AQMP). Control Measure CMB-03 proposed NOx emission reductions of 50 to 75 

percent by requiring furnaces to meet a NOx emission limit of between 10 to 20 ng/J of heat 

output (15 to 30 ppm). 

EQUIPMENT AND PROCESS 

Fan-type gas-fired furnaces heat a building by circulating air from inside the building through the 

furnace. In a fan-type furnace, air is heated when it passes through a heat exchanger. 

Combustion gases heat up the inside of the heat exchanger and building air moving past the 

outside of the heat exchanger removes heat from the outside surface. A blower (fan) pulls air 

through one or more intake ducts and pushes the air past the heat exchanger and through another 
PAR 1111 Staff Report

 1 - 2 October 28, 2009 

set of ducts which direct the heated air to different parts of the building. The heated air 

circulates through the building before it is again pulled into the intake ducts and heated. This 

process continues until a specific temperature is detected by a thermostat in the building which 

then shuts off the furnace. When the temperature at the thermostat goes below a set point, the 

thermostat sends a signal for the furnace to turn on. 

Heat Exchangers and Burners 

Two types of heat exchanges are used in forced-draft gas-fired furnaces. These two types of heat 

exchangers are matched with burners that are designed for the specific heat exchanger. One type 

of heat exchanger is a cylinder or “can” type heat exchanger in which a single burner heats the 

inside of the cylinder and the building air is circulated past the outside of the cylinder before 

distribution throughout the building. An exhaust fan pulls the combustion gases from the burner 

out of the cylinder through an exhaust duct. The single burner mixes fuel gas and air before the 

mixture reaches the combustion zone of the burner. 

The second and most common type of heat exchanger for forced-air gas-fired furnaces is the tube 

type. The tube typically has a “Z” or “U” shape which allows for more surface area for heat 

exchange in a smaller volume. Furnaces with this type of heat exchanger have three, four or 

more tubes placed in a row and each tube has its own individual burner. These burners are 

smaller than the single burner used in a cylinder type heat exchanger. While each burner is fired 

into its own heat exchange tube, one exhaust fan pulls the combustion gases from every tube to a 

common exhaust duct. Air from the building is heated by passing through the row of heat 

exchangers before it is pushed by the blower through distribution ducts. 

The tube type heat exchanger is used because it is a cost effective design. Tubes can be made in 

several ways. In addition to fabricating an individual tube from one or more sections of pipe, a 

“tube” can be made using two sheets of stamped sheet metal which are pressed together. The 

tube is formed by the mirror images of a design stamped into each piece of sheet metal. This 

“clamshell” design allows manufacturers to greatly increase the surface area of the heat 

exchanger and produce complicated tubes with more than one pathway for exhaust gases to pass 

through. For large scale production, the clamshell tube-type heat exchanger also reduces 

construction cost. 

The current burners in the tube type heat exchange system are simple and cost-effective. They 

are essentially Bunsen burners fired horizontally into the heat transfer tubes. At the base of the 

burner an orifice (venturi) ejects fuel gas under pressure into the body of the burner. As the jet 

of fuel gas passes two small windows at the base of the burner tube, air is drawn into the burner 

tube and mixed with the fuel gas. At the end of the burner tube, the fuel and air is ignited and 

produces a long flame which projects down the length of the first part of the heat exchange tube. 

The burner can be fired horizontally because the exhaust fan and tube keep the flame and exhaust 

gasses in the heat exchanger. 
PAR 1111 Staff Report

 1 - 3 October 28, 2009 

Heat Transfer 

Heat is transferred from exhaust gases to building air in a furnace by both convective and 

radiative heat transfer. Convective heat transfer involves transfer of energy from a moving fluid 

(i.e., heated air and combustion gasses) to a solid, liquid, or gaseous material. In convective heat 

transfer, heat is transported by both diffusion and larger-scale motion of currents in a fluid. 

Radiative heat transfer is the transfer of heat from one location to another through emission of 

electromagnetic radiation. In a furnace this would be in the form of thermal radiation where 

energy is transferred by emission in the infrared range of the electromagnetic spectrum. The 

amount of thermal radiation emitted by an object depends upon its temperature. Burners produce 

radiant heat from the temperature of the flame and the high temperature of exhaust gases. 

Forced-air furnaces are designed to capture both convective and radiative heat from exhaust 

gases with metal heat exchangers and then transfer heat by convection and radiation to the 

building air circulating past the heat exchanger. The heat exchanger dimensions and the power 

of the combustion gas draft fan determine the amount of time hot combustion gases spend in the 

heat exchanger. The external dimensions of the heat exchange and the power of the circulation 

fan determine the heat transfer to the circulating building air. In furnaces with tube-type heat 

exchangers, a manufacturer can easily produce a variety of models by varying the number of 

tubes. Each number of tubes is matched with a specific combustion exhaust fan and circulating 

air fan. 

TECHNOLOGY ASSESSMENT 

There are several options for reducing NOx emissions from residential furnaces. Since 1978 

when Rule 1111 was adopted by the AQMD Governing Board, a review of patents for residential 

furnaces indicates that manufacturers and others have evaluated many technologies. Since the 

late 1990s however, research on emissions reduction in residential furnaces appears to have 

slowed. Prior to that time, manufacturers experimented with complex technologies such as 

catalytic converters and refined simple technologies such as steel inserts which are placed in the 

burner flame zone to reduce flame temperature. Many of the products currently sold for use in 

the AQMD use flame inserts in heat exchangers. 

Other organizations have also developed technology for use in residential furnaces. For 

example, the Gas Research Institute patented a burner for residential furnaces that can achieve 

NOx emission less than 30 ppm (referenced to 3% oxygen). In addition, manufacturers in 

Europe have developed small low NOx burners that could be used in furnaces in the United 

States. 
PAR 1111 Staff Report

 1 - 4 October 28, 2009 

Emission Reduction Technology 

Low NOx burners in some applications can achieve less than 10 ppm NOx. There are many 

types of burners that emit less than 30 ppm NOx (equivalent to 20 nanograms of NOx per Joule 

of heat output in residential furnaces). These technologies could readily be adapted for use in 

residential furnaces because they have been used in other air heating applications. The 

manufacturers of these products use a variety of techniques to achieve lower emissions. The 

principal technique is better premixing of fuel and air before combustion takes place. This 

results in more efficient combustion of fuel and a more uniform flame temperature. A more 

uniform flame temperature results in fewer hot spots and reduced formation of NOx. 

Most premix burners require the aid of a blower to mix the fuel with air before combustion takes 

place (primary air). However, residential tank type water heaters and some small boilers are now 

made with atmospheric premix burners that achieve NOx emissions in the range of 15 to 30 ppm 

(10 to 20 ng/J). Atmospheric burners do not use a blower to mix fuel and air. The burners in 

these units combine premixing with specially designed burner heads that reduce flame 

temperature and NOx emissions by spreading the flame over a larger area. Premixing of fuel and 

air is accomplished using a jet of fuel gas exiting a specially designed nozzle. The velocity of 

the fuel leaving the nozzle draws air into a mixing zone and mixing is completed before the fuel 

and air mixture leaves the burner. 

A variety of burners are designed to spread flames over a larger area to reduce hot spots and 

lower NOx emissions. One type, radiant premix burners, has been available for several decades. 

Radiant premix burners are made with ceramic, sintered metal, metal screen or metal fiber heads 

that spread the flame over a larger surface. These burners can be run in either radiant or blue 

flame modes. When a burner runs in radiant mode, the flame surface is red instead of blue and it 

produces more radiant heat. These burners come in a variety of shapes including flat and 

cylindrical. 

To further reduce NOx emissions, some premix burners also use staged combustion. This 

technique produces two combustion zones with differing air-fuel mixtures. The burner produces 

a fuel rich zone to start combustion and stabilize the flame and a fuel lean zone to complete 

combustion and reduce the peak flame temperature. In combination, these two zones reduce the 

formation of NOx. This technique incorporates premixing and can be used in combination with 

other techniques. 

Another common technique used to lower NOx emissions is increasing the amount of primary 

combustion air mixed with the fuel prior to combustion (increasing the excess air). Increasing 

the excess air reduces flame temperature and NOx emissions, but it also reduces the temperature 

of combustion gases through dilution. This reduction in flue gas temperature can reduce process 

efficiency if no other adjustments are made. However, furnace heat exchangers can be designed 

to compensate for higher levels of excess air in the burner with no loss of efficiency. Excess air 

through burners can also maintain a lower temperature in the heat exchanger, reduce heat stress 

and extend the life of the heat exchanger. 
PAR 1111 Staff Report

 1 - 5 October 28, 2009 

Available Technology 

While low NOx burners are not currently used in residential furnaces, the technology is used in 

other applications and can be adapted for use in residential furnaces. Low NOx burners used in 

these other applications incorporate several of the techniques discussed above. New burners 

developed for use in residential furnaces are likely to use improved premixing, staged 

combustion, and increased excess air. A burner developed for residential furnaces by the Gas 

Research Institute uses these technologies to reduce NOx emissions below 30 ppm (U.S. Patent 

6,071,115). Another burner developed at Lawrence Berkeley National Laboratory uses these 

techniques and can achieve NOx emission levels as low as 10 ppm 

(http://eetd.lbl.gov/aet/combustion/LSC-info/). An alternative approach is to use increased 

surface area combined with premixing and increased excess air to reduce NOx emissions to as 

low as 15 ppm (10 ng/J). Two burners currently developed for use in residential tank type water 

heaters sold in the AQMD use these techniques. 

AFFECTED INDUSTRIES 

Proposed Amended Rule 1111 affects manufacturers (NAICS 333) and distributors and 

wholesalers (NAICS 423) of residential furnaces. The Air Conditioning Heating and 

Refrigeration Institute (AHRI), the manufacturer’s trade organization, indicates that there are no 

manufacturers of fan-type gas-fired residential furnaces in the AQMD. However, these 

companies do maintain regional sales offices and distribution centers in the AQMD. The units 

affected by the proposed rule are used in most residential and many commercial settings for 

heating small buildings. 

Based on gas usage data from the California Energy Commission and the Southern California 

Gas Company, annual average NOx emissions from residential heating using natural gas were 

9.7 tons per day in 2002 and are estimated to be 10.5 and 11.1 tons/days in 2012 and 2023 

respectively. As most emissions occur between October and May, daily emissions in these 

months are higher. 

PUBLIC PROCESS 

The rule development effort for PAR 1111 is part of an ongoing process to reevaluate low NOx 

technologies for combustion equipment. To date, AQMD staff has held seven five Rule 1111 

Task Force meetings to discuss burner technology, implementation issues and other topics with 

representatives from affected manufacturers, trade organizations and other interested parties. At 

these meetings low NOx technology, emission limits, emission testing and compliance dates 

were discussed. In addition, a Public Workshop for PAR 1111 was held on September 9, 2009 

and PAR 1111 was discussed at the Stationary Source Committee on September 25, 2009 and 

October 16, 2009. 
CHAPTER 2: SUMMARY OF PROPOSED AMENDED RULE 1111 

AQMP CONTROL MEASURE 

PROPOSED AMENDED RULE REQUIREMENTS 
PAR 1111 Staff Report

 2 - 1 October 28, 2009 

AQMP CONTROL MEASURE 

Control measure CMB-03 of the 2007 AQMP proposed NOx emission reductions of 50% to 75% 

from this source category. These emission reductions require a new Rule 1111 emission limit of 

10 to 20 ng/J of heat output (15 to 30 ppm at 3% oxygen). The control measure also allowed for 

a phase-in of the new emission limit. The proposed NOx limit for Proposed Amended Rule 1111 

(PAR 1111) is within the range proposed by CMB-03 and is phased in over a period of seven 

years. 

PROPOSED RULE REQUIREMENTS 

Purpose and Applicability 

A purpose and applicability section has been added to PAR 1111 to make the rule consistent with 

current practice. The purpose of the PAR 1111 is to reduce emissions of nitrogen oxides in order 

to achieve federal and state ambient air quality standards. This new section of PAR 1111 

includes the equipment size limits that were previously contained in the definition section of the 

rule. The rule applies to residential and commercial space heaters used for comfort heating with 

a rated heat input capacity of less than 175,000 BTU per hour; or, for combination heating and 

cooling units, a cooling rate of less thant 65,000 BTU per hour. . 

Requirements 

PAR 1111 requires new residential heating furnaces to meet lower NOx emission limits starting 

in 2012. Table 1 identifies compliance dates and emission limits for different categories of 

furnace. Starting October 1, 2012, new mobile home furnaces must meet an emission limit of 40 

ng/J heat output. Starting October 1, 2014, a 14 ng/J NOx limit is phased-in for new furnaces. 

All new units must meet the 14 ng/J NOx limit by October 1, 2018. 

 Table 1 – Furnace NOx Limits and Compliance Schedule 

The proposed 40 ng/J emission limit for mobile home furnaces is based on the current 

technology for other residential furnaces. This emission level can be achieved using current 

burners. The proposed new 14 ng/J limit is based on several factors. The first is that the new 

burner technology will be the same for any emission limit between 10 and 20 ng/J. While 10 

Compliance Date Equipment Category NOx Emission Limit 

(nanograms/Joule) 

October 1, 2012 Mobile Home Furnace 40 

October 1, 2014 Condensing Furnace 14 

October 1, 2015 Non-condensing Furnace 14 

October 1, 2016 Weatherized Furnace 14 

October 1, 2018 Mobile Home Furnace 14 
PAR 1111 Staff Report

 2 - 2 October 28, 2009 

ng/J has already been achieved in practice by residential tank-type water heaters subject to Rule 

1121, a higher limit such as 14 ng/J would be more appropriate because of the likely higher 

energy output per square inch of burner surface anticipated in residential heating furnaces. In 

addition, for small boilers and larger water heaters subject to AQMD Rule 1146.2, 14 ng/J was 

the most cost effective emission limit. 

Certification, Identification of Compliant Units and Enforcement 

PAR 1111 updates references to test methods for determining compliance with rule emission 

limits and continues the AQMD program for manufacturers to certify the emission level of their 

products. PAR 1111 also makes labeling requirements more specific. In particular, 

manufacturers must identify on the furnace rating plate and shipping container whether the 

furnace complies with the 40 or 14 ng/J NOx emission limit. The AQMD will inspect 

distributors, retailers and installers and conduct tests as necessary to ensure compliance with 

emission limits, the certification program, and labeling requirements. 

Exemptions 

To allow for the depletion of existing inventories, PAR 1111 allows a temporary 300 day 

exemption for units manufactured before the compliance date and delivered into the AQMD 

prior to the compliance date. PAR 1111 also continues the current exemption for mobile home 

furnaces until these units must comply with the 40 ng/J NOx emission limit on October 1, 2012. 

As the rule only applies to natural gas fired units, exemptions are not needed for units fired with 

other fuels. 

Incentives for Early Compliance 

PAR 1111 also provides manufacturers an incentive to produce 14 ng/J products earlier than the 

compliance date. A manufacturer may elect to either reduce (offset) payments for alternate

compliance plan 40 ng/J furnaces by the number of 14/ng/J furnaces of furnaces received by a 

distributor or seller in the District prior to the applicable compliance date or will be eligible to 

receive a rebate payment of $75 for each 14 ng/J furnace received by a distributedor or seller and 

sold into the District 90 days prior to the compliance date. Manufacturers of standard efficiency 

furnaces with standard fuel efficiency will receive a rebate payment of $75 and high efficiency 

furnaces with AFUE greater than or equal to 90 percent will receive a rebate payment of $90 for 

furnaces delivered and sold into the District 90 days prior to the applicable compliance date. 

Offering the rebate directly to the manufacturers instead of distributors, installers or end users, in

addition to the administrative and implementation simplicity, it also provides the manufacturer 

with the best opportunity to recoup hits product development costs and offer the best possible 

price reduction to the end user. 

The AQMD Rule 1121 emission mitigation program will be used to fund early NOx emission 

reductions from residential furnaces. A manufacturer must provide documentation to the AQMD 

of the number of each model of 14 ng/J furnaces distributed or sold into the District and 

delivered prior to the applicable compliance date. Because funds are limited, this incentive for 

early compliance will be available on a first come first served basis. PAR 1111 proposes a cap 

of $3,000,000 on early compliance rebates to all manufacturers. The date an applicant provides 
PAR 1111 Staff Report

 2 - 3 October 28, 2009 

AQMD approved documentation of the number of units delivered into the District will determine 

priority. 

Technology Assessment 

The rule requires a technology assessment be presented to the AQMD Governing Board before 

April 1, 2013. The technology assessment will incorporate information provided by industry 

andor AQMD funded technology development projects. The technology assessment will be used 

to assess whether the evaluate the technical feasibility of the 14 ng/J NOx emission limit in PAR 

1111 and recommend if the limit or compliance dates should be changed. 

The technology assessment is meant to serve as a safeguard and address concerns regarding the 

proposed limits and compliance schedule expressed by manufacturers. It is also meant to 

address, due to the a lack of interest by manufacturers the removal of in a proposal in the 

preliminary draft PAR 1111 that would have allowed manufacturers to delay compliance up to 

three years and pay mitigation fees for each non-compliant unit shipped into the District after the 

compliance date. The mitigation fees collected by the AQMD were to be used to fund NOx 

emission reductions from other sources. The mitigation fee option will be evaluated as part of 

the technology assessment to determine its viability.
CHAPTER 3: IMPACT ASSESSMENT 

IMPACT ANALYSIS 

COST EFFECTIVENESS 

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) ANALYSIS 

SOCIOECONOMIC ASSESSMENT 

DRAFT FINDINGS UNDER CALIFORNIA HEALTH & SAFETY CODE 

SECTION 40727

INCREMENTAL COST-EFFECTIVENESS 

COMPARATIVE ANALYSIS 
PAR 1111 Staff Report

 3 - 1 October 28, 2009 

IMPACT ANALYSIS 

There are over four million residential type heating furnaces in the AQMD. A typical furnace 

emits more than one and a half pounds of NOx per year. PAR 1111 will reduce emissions from 

an individual furnace by more than one pound per year. Based on a furnace life of 20 to 25 

years, Tthe proposed rule is estimated to reduce annual average emissions of NOx by less than 

0.1 ton per day in 2014 and 2.5 to 3.1 tons per day in 2023. These emission reductions are based 

upon an average furnace lifetime of 25 years and baseline NOx emissions of 10.5 tons/day in 

2014 and 11.1 tons/day in 2023 (2007 AQMP). All furnaces will be replaced with low NOx

units by about 2043. It should be noted that because an average lifetime for a residential furnace 

in Southern California is about 20 to 25 years, replacement with 14 ng/J furnaces will not be 

completed until 2043 and the complete emission reduction benefit of this amendment is 

estimated to be about 6.8 tons per day (annual average). Since residential heating furnaces in 

Southern California are typically used between October and May, daily emissions and reductions 

for 2023 in these months can potentially be 5 to 6 tons per day. 

According to the Air Conditioning Heating and Refrigeration Institute (AHRI), the 

manufacturer’s trade organization, there are no facilities manufacturing fan-type gas-fired 

residential furnaces in the AQMD. However, the affected companies do maintain regional sales 

offices and distribution centers in the AQMD. 

Manufacturers will be required to test new furnace models in order to certify the furnace. The 

test must be performed by an independent laboratory not affiliated with the manufacturer. A 

typical cost for a certification source test is about $1,200 per test. Certification tests will be 

performed by a number of laboratories including some in the AQMD. 

COST EFFECTIVENESS 

Although residential natural gas fired, fan-type central furnaces that meet the proposed 14 ng/J 

NOx emission limit in PAR 1111 are not currently produced;, cost effectiveness can be estimated 

in other ways. Three approaches were used to estimate cost effectiveness for PAR 1111. 

Cost Effectiveness From Rule Amendments for Similar Equipment 

One approach is to look at the cost effectiveness for other rule amendments with similar NOx 

emission reductions in small equipment using the technologies applicable to residential furnaces. 

Cost effectiveness for installing new low NOx burners in equipment affected by PAR 1111 was 

estimated for 2007 AQMP Control Measure CMB-03 to be between $10,000 and $16,000 per 

ton. This estimate was based on analyses for amendments to AQMD Rules 1121 and 1146.2. 

Since adoption of the AQMP, an equipment survey and analysis for AQMD Rule 1147, which 

was adopted in December 2008 and regulates a variety of air heating equipment, had a cost 

effectiveness range of $4,000 to $20,000 per ton for small burner systems used in air heating 

applications. Amendments to AQMD Rules 1121 and 1146.2 and recently adopted AQMD Rule 

1147 require manufacturers to use low NOx premix burners to achieve emission levels between 

15 ppm (10 ng/J) and 30 ppm (20 ng/J). 
PAR 1111 Staff Report

 3 - 2 October 28, 2009 

Cost Effectiveness Based On Price Increases for Water Heaters 

The cost effectiveness for residential furnaces can also be estimated from the cost increases for 

residential water heaters that had to reduce NOx emissions from 40 ng/J to 10 ng/J. For the 

amendment to rRule 1121 which reduced the NOx limit, staff estimated a cost increase of about 

$60 per water heater to the consumer. Adjusting the estimated retail cost to 2009 dollars using 

the annual Marshall and Swift Equipment Cost Index results in an average cost increase per 

water heater of $83. 

The cost increase estimated when the rule was adopted is within the range of increases in price 

seen for the new low NOx water heaters. When water heaters meeting the new 10 ng/J NOx 

limit were introduced in the last half of 2007, the retail price increase for a base unit with a six 

year warranty was about $60. The price increases for units with longer warranty, higher output 

and additional options were higher ($80 to $120). However, since the introduction of the new 

low NOx water heaters, prices have decreased because of competition and reductions in the cost 

of steel, aluminum and copper. Currently, the cost of an ultra low NOx water heater is about $80 

more than the cost of a 40 ng/J unit. 

A basic water heater has a 30,000 to 36,000 Btu per hour burner. Higher output models have 

larger burners. However, a typical residential furnace has a much higher heat input of about 

three times that of a water heater (80,000 to 110,000 Btu per hour). Adjusting for the difference 

in burner output, the estimated cost increase to the homeowner for a residential furnace meeting 

a NOx emission limit of 14 ng/J is about $240 (3*$80=$240). The proposed rule will reduce 

NOx emission by an average of 1.01 pounds per year per unit. Assuming a 25 year lifetime, the 

cost effectiveness for NOx reductions based on residential water heater costs is about $19,000 

per ton. 

Cost Effectiveness Based On Material Cost and Price Markups 

PAR 1111 cost effectiveness can also be estimated from the material cost to upgrade residential 

furnace burners and price markups for manufacturers and wholesalers. The U.S. Department of 

Energy (DOE) recently calculated markups for residential furnaces during rulemaking which 

increased the minimum efficiency requirement for residential furnaces. Based on the recent 

residential furnace analysis by DOE and adjusting for local sales tax, the total price markup to 

the homeowner is 4.5 times the manufacturer’s baseline manufacturing cost. 

While the heat exchanger tubes/sections, the burner base and control systems for the new system 

may be different than for a current furnace, these components should be very similar with no 

increase in material or manufacturing cost expected other than different tools. The burner base 

and heat exchangers may be shaped differently but will use the same materials. Different tools 

might be used to shape these components for new furnaces but the tools for existing designs 

would be kept to manufacture furnaces for other parts of the country. The control systems in 

new units would have the same components and perform the same functions. Fans, gas valves, 

flame sensors and other components would be similar and are expected to have the same cost. 

The significant change in the design for new units will be the burner head and how it joins with 

the heat exchanger. AQMD staff has estimated material costs for new burner heads that can 

meet the proposed emission limit based on discussion with representatives of companies that 
PAR 1111 Staff Report

 3 - 3 October 28, 2009 

manufacture burners, provide materials that can be used in burners, or who manufacture metal 

products. The estimate for the cost to the manufacturer for a fabricated burner head for a tube or 

sectional heat exchanger that can meet the proposed emission limit is approximately $6 per 

burner. This is the additional material cost to the manufacturer of modifying a burner. A typical 

residential furnace with a tube or sectional heat exchanger has four burners. The total estimated 

cost to the manufacturer for four burner heads is $24. Based on the cost markups used by DOE 

for its recent regulation, the cost to the homeowner is estimated to be $108. Using this approach 

for estimating cost, a 25 year lifetime and an emission reduction of 1.01 pounds per year, the cost 

effectiveness to produce a furnace that meets a NOx limit of 14 ng/J is $8,600 per ton of NOx 

reduced. 

The cost of research for developing new burners and integrating the new burners into existing 

designs was not included in the above cost estimate of modified burners. Research cost and the 

cost of certification tests will be recouped over time by inclusion in the manufacturer’s price to 

the distributor or wholesaler (the manufacturer’s markup). There may also be other 

manufacturing costs. The manufacturer’s markup can be assumed to include those costs. 

However, the cost estimate of $240 per unit based on the residential water heater cost also 

includes research, testing and manufacturing costs and can be assumed to be an upper bound on 

the increase cost of a low NOx furnace to the homeowner. Based on the three approaches for 

calculating cost, staff estimates the cost effectiveness for PAR 1111 to be between $8,600 and 

$19,000 per ton with an increased cost to the consumer of between $108 and $240 per furnace. 

Table 2 – Cost Effectiveness Summary 

Cost Effectiveness Approach Cost Effectiveness 

Previous Rule Amendments $10,000 to $16,000 per ton

Water Heater Price Increases $19,000 per ton 

Material Cost & Markups $8,600 per ton 

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) ANALYSIS 

Pursuant to the California Environmental Quality Act (CEQA) and AQMD Rule 110, an 

Environmental Assessment (EA) was prepared for proposed amended Rule 1111 and was 

circulated for a 30 day public review from September 24, 2009 to October 23, 2009. Responses 

to any comments on the Draft EA received during the public review and comment period are 

incorporated into the Final EA.

Pursuant to the California Environmental Quality Act (CEQA) and AQMD Rule 110, the 

appropriate CEQA documentation will be prepared to analyze any potential adverse 

environmental impacts associated with PAR 1111. Upon completion, the CEQA document will 

be released for public review and comment, and will be available at AQMD Headquarters, by 

calling the AQMD Public Information Center at (909) 396-3600, or by accessing AQMD’s 

CEQA website at: www.aqmd.gov/ceqa.

SOCIOECONOMIC ASSESSMENT 

An analysis of PAR 1111 assessing the socioeconomic impacts has been conducted and the draft 

socioeconomic report was will be available 30 days prior to the Board hearing. The final 

socioeconomic report is included in the Public Hearing package for PAR 1111.
PAR 1111 Staff Report

 3 - 4 October 28, 2009 

DRAFT FINDINGS UNDER CALIFORNIA HEALTH & SAFETY CODE 

SECTION 40727

California Health and Safety Code Section 40727 requires that prior to adopting, amending or 

repealing a rule or regulation, the AQMD Governing Board shall make findings of necessity, 

authority, clarity, consistency, non-duplication, and reference based on relevant information 

presented at the public hearing and in the staff report. In order to determine compliance with 

Sections 40727 and 40727.2 require a written analysis comparing the proposed rule with existing 

regulations.

The draft findings are as follows:

Necessity: The rule is needed to reduce emission limits from combustion equipment in order 

to meet federal and state ambient air quality standards. 

Authority: The AQMD obtains its authority to adopt, amend, or repeal rules and regulations 

from California Health and Safety Code Sections 39002, 40000, 40001, 40440, 40702, 40725 

through 40728, and 41508.

Clarity: PR1111 has been written or displayed so that its meaning can be easily understood by 

the persons affected by the rule.

Consistency: PR1111 is in harmony with, and not in conflict with or contradictory to, existing 

federal or state statutes, court decisions or federal regulations.

Non-Duplication: PR 1111 does not impose the same requirement as any existing state or 

federal regulation, and is necessary and proper to execute the powers and duties granted to, and 

imposed upon the AQMD. 

Reference: In amending this rule, the following statutes which the AQMD hereby implements, 

interprets or makes specific are referenced: Health and Safety Code sections 39002, 40001, 

40702, 40440(a), and 40725 through 40728.5.

INCREMENTAL COST-EFFECTIVENESS 

Health and Safety Code Section 40920.6 requires an incremental cost-effectiveness analysis for 

Best Available Retrofit Control Technology (BARCT) rules or emission reduction strategies 

when there is more than one control option that would achieve the emission reduction objective 

of the proposed amendments, relative to ozone, CO, SOx, NOx, and their precursors. 

The only option for reducing NOx emission from equipment affected by PAR 1111 is 

replacement of current burners in new manufactured equipment with low NOx burners. Some 

furnaces do use electricity to provide heat and other kinds of units use heated water from a small 

boiler or water heater. However, these equipment are either not regulated by the AQMD 

(electric furnaces or heat pumps) or are regulated by other AQMD rules (Rules 1121 or 1146.2). 

Because there is only one control option, a typical incremental cost-effectiveness analysis cannot 

be prepared. 
PAR 1111 Staff Report

 3 - 5 October 28, 2009 

Staff did evaluate the incremental cost effectiveness as compared to a less stringent option. The 

same technology used to achieve a NOx limit of 14 ng/J can also be used to achieve less 

stringent limits of 17 ng/J (25 ppm) or the upper bound limit of 20 ng/J (30 ppm) included in 

Control Measure CMB-03. For these less stringent limits the cost of the technology is the same 

but because emission reductions are less, the cost effectiveness deteriorates rapidly. In other 

words, the less stringent option is less cost-effective 

COMPARATIVE ANALYSIS 

Under Health and Safety Code Section 40727.2, the AQMD is required to perform a comparative 

written analysis when adopting, amending, or repealing a rule or regulation. The comparative 

analysis is relative to existing federal or state requirements, existing or proposed AQMD rules 

and air pollution control requirements and guidelines that are applicable to industrial, 

institutional, and commercial combustion equipment.

The AQMD is not aware of any state or federal requirements regulating air pollution that are 

applicable to new or in-use PAR 1111 units. Rule 1111 is also the only AQMD rule regulating 

this type of equipment. Because there are no state or federal requirements for PAR 1111 units, 

the proposed amendments are not in conflict with and do not duplicate any AQMD, state or 

federal requirement. 
RESPONSE TO COMMENTS 
PAR 1111 Staff Report

 4 - 1 October 28, 2009 

RESPONSE TO COMMENTS 

Comment: The proposed compliance schedule for PAR 1111 is too soon. 

Response: AQMD staff has extended the compliance schedule for meeting the new lower NOx 

limit by two years. The new 14 ng/J emission limit is phased in for the three main categories of 

equipment starting in 2014. Control Measure CMB-03 of the 2007 AQMP proposed a 

compliance date of 2012 but provided an option for a phased approach starting in 2012. PAR 

1111 requires that mobile home furnaces meet the existing residential furnace limit of 40 ng/J by 

October 1, 2012 and that high efficiency, conventional and weatherized residential furnaces meet 

the 14/ng/J limit by October 1 2014, 2015 and 2016 respectively. Mobile home furnaces must 

meet the 14 ng/J emission limit in 2018. 

PAR 1111 requires new furnaces meet the new 14 ng/J emission limits seven years after 

adoption of the 2007 AQMP. The proposed rule amendment allows industry five years to 

continue developing, testing and marketing the low NOx technology. Note that when the rule 

was adopted in 1978, the Governing Board considered a requirement that residential furnaces 

meet an emission limit 12 ng/J in 1995 in addition to the 40 ng/J limit in 1984. 

It should also be noted that PAR 1111 requires AQMD staff to assess the availability of low 

NOx technology that can meet the 14 ng/J NOx limit by April 1, 2013. Staff will recommend at 

that time whether the emission limit or compliance dates should be revised. 

Comment: The AQMD should participate with industry in technology studies before adoption 

of the rule in order to determine if a new lower NOx emission limit is feasible. 

Response: AQMD staff is committed to contributing to the development of low NOx 

technology for residential furnaces. Specifically the adopting resolution directs staff to invest up 

to $1,000,000 to solicit technical assistance to develop compliant furnaces prior to the effective 

dates. AQMD staff is considering a number of options to evaluate and advance low NOx

technology including joint studies with industry. However, tThe AQMP calls for an amendment 

to Rule 1111 this year. PAR 1111 also includes a new requirement for AQMD staff to present a 

technology assessment to the AQMD Governing Board by April 1, 2013 that evaluates low NOx 

technology in residential furnaces and manufacturers’ progress towards meeting the 14 ng/J NOx 

emission limit. 

Comment: The 14 ng/J emission limit in PAR 1111 will be difficult to meet. 

Response: AQMD staff understands the concern expressed by industry regarding a new NOx 

emission limit. Staff recognizes that adapting low NOx technology to a new application takes 

time. The proposed amendment provides at least 5 years for manufacturers to further develop 

and test new burner technology. PAR 1111 also includes a new requirement for staff to present a 

technology assessment to the AQMD Governing Board by April 1, 2013 that will evaluate the 

state of technology and manufacturers’ progress towards meeting the 14 ng/J NOx emission 

limit. 

The 14 ng/J NOx emission limit was selected based upon information from a variety of sources. 

AQMD staff consulted with furnace manufacturers, manufacturers of burners and burner 

materials, and combustion researchers before selecting 14 ng/J as a NOx emission limit. There 

are also a variety of types of burners that can be used in residential furnaces. At the present time,

small residential boilers and residential tank type water heaters can achieve NOx emission levels 
PAR 1111 Staff Report

 4 - 2 October 28, 2009 

of 10 to 14 ng/J. The technology used in these applications was first developed in larger 

commercial and industrial boilers and heaters and was adapted to residential applications. 

AQMD staff did not propose the NOx emission level of 10 ng/J achieved by residential water 

heaters because AQMD staff expects that, in residential furnaces, the heat output per square inch 

of burner surface will be higher, producing more NOx, than for the burners used in residential 

water heaters. 

Comment: The PAR 1111 mitigation fee is too high. It will cause builders of new homes to 

switch to other types of residential heating systems. 

Response: Based in part on manufacturers’ comments and limited interest, the mitigation fee of 

$213 and alternate compliance option which would allow manufacturers to delay compliance by 

up to three years has been removed from PAR 1111. However, the proposed rule now includes a 

requirement that AQMD staff present a technology assessment to the AQMD Governing Board 

by April 1, 2013 that evaluates low NOx technology in residential furnaces and manufacturers’ 

progress towards meeting the 14 ng/J NOx emission limit. Further, the proposed amendment 

now includes an early compliance incentive provision to encourage and accelerate the product 

development and market introduction efforts. 

Comment: The revised mitigation fee that provided manufacturers with a sliding scale of $140 

to $35 per unit should be included in the proposal. 

Response: In response to the comments received relative to the mitigation fee level, staff at the 

September 25, 2009 Stationary Source Committee of the AQMD Governing Board, presented a 

revised proposal that provides manufacturers requesting delayed compliance with a tiered fee 

schedule based on the emission level of furnaces shipped. The revised mitigation fee was based 

on a 20 year average life and a cost effectiveness of $14,000 per ton (taking into account the cost 

effectiveness of Carl Moyer and other projects). The proposed fee was also prorated based on a 

furnaces certified emissions. Staff also proposed to reduce the fee by at least 10 percent for high 

efficiency condensing furnaces. The following table lists the proposed fees presented to the 

Stationary Source Committee on September 25, 2009. 

Alternate Compliance Mitigation Fees

Furnace Emissions

(ng/J)

Mitigation Fee *

($)

31 to 40 $140

26 to 30 $85

20 to 25 $60

< 20 $35

* At least 10% reduction for high efficiency units

However, as mentioned above, based on the lack of support by the regulated community for this 

modified mitigation fee at the committee meeting, staff removed it from its proposal and 
PAR 1111 Staff Report

 4 - 3 October 28, 2009 

proposed to replace it with the technology assessment and financial incentives. Staff is 

committed to revisit the mitigation fee option as part of the technology assessment in 2013. 

Comment: The labeling requirements of PAR 1111 are unnecessary and difficult to enforce. 

Response: The labeling requirements in the current rule were adopted in 1978. Since the rule 

was adopted, the AQMD has significantly more experience regulating consumer products. The 

proposed labeling requirements in PAR 1111 are based upon the AQMD’s experience regulating 

residential water heaters, commercial water heaters and small boilers, and paints and solvents. 

Because there are four categories of furnaces affected by PAR 1111 and distributors and sellers 

could have in stock 40 ng/J units allowed under the sell-through provision, compliant 14 ng/J 

units, and non-certified units that cannot be sold for use in the District, it is crucial that company

owners, company employees, installers, builders, homeowners and AQMD compliance staff can 

easily identify units that may be sold for use and installed in the AQMD. 

Comment: Manufacturers have different types of distribution networks for providing furnaces 

to consumers. Because of these differences in distribution, the current proposal that provides an 

early compliance incentive for any furnace delivered to the District prior to the compliance is 

unfair. In order to receive a payment for early compliance, manufacturers should be required to 

deliver furnaces to the District at a time prior to the compliance date.

Response: AQMD staff has revised PAR 1111 to require that furnaces be sold and delivered to 

a location in the District 90 days prior to the compliance date in order to be eligible for the early 

compliance incentive.

Comment: High efficiency condensing furnaces may suffer a loss in sales because they must 

comply with the emission limit first. 

Response: While high efficiency furnaces must comply with the emission limit first, they will 

likely be the first category to benefit from the early compliance incentive. The early compliance 

incentive will reduce potential price increases. In addition, AQMD staff has revised PAR 1111 

to increase the incentive for high efficiency condensing furnaces to $90 for each furnace 

delivered to the District 90 days prior to the compliance date. Due to markups from distributors, 

wholesalers, sales outlets, and installers, the additional $15 rebate incentive for high efficiency 

units to manufacturers could result in further savings to the consumer of $60 to $70.

Comment: It is not possible to estimate cost and cost effectiveness for heating furnaces that 

have not been designed. 

Response: The AQMD is required to estimate cost effectiveness of AQMD control measures, 

proposed rules and proposed rule amendments. The three approaches used by staff provide a 

reasonable basis for estimating a range for the cost effectiveness of PAR 1111.
REFERENCES 
REFERENCES 

CEC, 2004. California Statewide Residential Appliance Saturation Study (400-04-009). 

California Energy Commission, June 2004. 

DOE. 2007. Technical Support Document: Energy Efficiency Program for Consumer Products: 

Energy Conservation Standards for Residential Furnaces and Boilers. U.S. Department of 

Energy, September 2007. 

SCAQMD, 2006. Staff Repot: Proposed Rule 1146.2 - Emissions of Oxides of Nitrogen from 

Large Water Heaters and Small Boilers. South Coast Air Quality Management District, May

2006. 

SCAQMD, 1999. Staff Report: Proposed Rule 1121 - Control of Nitrogen Oxides From 

Residential Type Natural Gas-Fired Water Heaters. South Coast Air Quality Management 

District, November 1999. 

SCAQMD, 1997. Final Staff Repot for: Proposed Rule 1146.2 - Emissions of Oxides of 

Nitrogen from Large Water Heaters and Small Boilers. South Coast Air Quality Management 

District, December 1997. 
APPENDIX A – LOW NOX BURNERS 
























SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

SOCIOECONOMIC REPORT FOR

Proposed Amended Rule 1111NOx Emissions from Natural-Gas-Fired, 

Fan-Type Central Furnaces

October 2009

Deputy Executive Officer

Planning, Rule Development, and Area Sources

Elaine Chang, DrPH

Assistant Deputy Executive Officer

Planning, Rule Development, and Area Sources

Laki Tisopulos, Ph.D., P.E.

Planning and Rules Manager

Planning, Rule Development, and Area Sources

Joe Cassmassi

Author: Sue Lieu, Ph.D., Program Supervisor 

Reviewed By: Jill Whynot, Director of Strategic Initiatives

Gary Quinn, P.E., Program Supervisor

Ruby Fernandez, Deputy District Counsel II
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

GOVERNING BOARD

Chairman: WILLIAM A. BURKE, Ed.D.

Speaker of the Assembly Appointee

Vice Chairman: DENNIS YATES

Mayor, City of Chino

Cities of San Bernardino County Representative

Members:

MICHAEL D. ANTONOVICH

Supervisor, Fifth District

Los Angeles County Representative

MARION ASHLEY

Supervisor, Fifth District

Riverside County Representative

MICHAEL CACCIOTI

Council Member, City of South Pasadena

Cities Representative, Los Angeles County/Eastern Region

BILL CAMPBELL

Supervisor, Third District

Orange County Representative

JANE W. CARNEY

Senate Rules Committee Appointee

JOSIE GONZALES

Supervisor, Fifth District

San Bernardino County Representative

RONALD O. LOVERIDGE

Mayor, City of Riverside

Cities Representative, Riverside County

JOSEPH K. LYOU, Ph.D.

Governor’s Appointee

JAN PERRY

Councilmember, City of Los Angeles

Cities Representative, Los Angeles County/Western Region

MIGUEL PULIDO

Mayor, City of Santa Ana

Cities Representative, Orange County

TONIA REYES URANGA

Council Member, City of Long Beach

Cities Representative, Los Angeles County/Western Region

Executive Officer:

BARRY R. WALLERSTEIN, D.Env.
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD i October 2009

EXECUTIVE SUMMARY

A socioeconomic analysis was conducted to assess the impacts of Proposed Amended Rule 

(PAR) 1111NOx Emissions from Natural-Gas-Fired, Fan-Type Central Furnaces. A summary 

of the analysis and findings is presented below. 

Elements of Proposed 

Amended Rule

PAR 1111—NOx Emissions from Natural-Gas-Fired, Fan-Type 

Central Furnaces—establishes NOx standards for natural-gas-fired, 

fan-type central furnaces. Mobile home furnaces sold and installed 

in the South Coast Air Quality Management District would have to 

comply with the 40 nanograms/joule (ng/J) NOx emission limit 

beginning on October 1, 2012 and 14 ng/J on October 1, 2018. 

Condensing, non-condensing, and weatherized furnaces are also 

required to comply with the 14 ng/J limit on October 1, 2014, 

October 1, 2015, and October 1, 2016, respectively. Compliant units 

are required to have proper labels displayed on them. Manufacturers 

of furnaces are required to demonstrate their compliance with an 

emission test protocol and test results. Furthermore, rebates would 

be offered to furnace manufacturers for their early compliance. 

Finally, sellers and installers of furnaces would have up to 300 days 

to clear their existing inventory. 

The proposed amendments would result in 2.5 tons of NOx emission 

reductions per day in 2023 and less than one-tenth of a ton of NOx 

emission reductions per day in 2014. The proposed amendments 

would not change the furnace replacement schedule.

Affected Facilities 

and Industries

The proposed amendments directly affect manufacturers of naturalgas-fired, fan-type central furnaces because burners would have to 

be re-designed to achieve the NOx limits. However, no 

manufacturers are located in the four-county area. Since furnaces 

are sold through local distributors, they will be indirectly affected. 

Residential and commercial property owners (consumers and real 

estate lessors, respectively), as well as builders for new construction

will pay a higher price (incremental manufacturing cost plus 

markup) resulting from the proposed amendments.

Assumptions of 

Analysis

The incremental cost of a mobile home furnace to consumers 

resulting from the NOx emission limit of 40 ng/J in 2012 is 

estimated to be $10. It is estimated that approximately 15 tests 

nationwide will be conducted to certify these compliant furnaces. 

One-third of such tests would be conducted in a testing lab in Los 

Angeles County at a cost of $1,200 per test. It is assumed that the 

average incremental cost of a furnace meeting the 14 ng/J NOx limit 

to consumers regardless of its type is $174, which is the average of 

lower and upper end prices. This cost includes material costs and 

certification tests to furnace manufacturers, markups at various sales 

stages, and any other necessary cost to bring a furnace to consumers. 
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD ii October 2009

The early compliance incentive will help to partially offset R&D 

costs for furnaces in the event manufacturers take advantage of it. 

The AQMD planned funding for product development and R&D 

plans might reduce the $174 incremental cost.

Based on the upper end price of a furnace at $2,000, implementation 

of the proposed amendments would, at most, result in an average 8.7

percent increase in the price of a furnace. This increase is relatively 

small given the average 25-year life of a furnace. 

It is estimated that there are 4.5 million existing furnaces in the fourcounty area, of which four percent are mobile home furnaces, 26 

percent are condensing furnaces, 60 percent are non-condensing 

furnaces, and 10 are percent weatherized furnaces. Since existing 

non-mobile home furnaces located in commercial properties are 

expected to be very low, staff assumed one percent for this analysis.

The number of affected furnaces each year is estimated by assuming 

an annual four percent replacement rate on the existing 4.5 million 

furnace stock based on an average life of 25 years for a furnace plus 

the growth in the number of furnaces each year. The share of each 

county’s total number of furnaces in the four-county area is based on 

the number of housing units in each county in 2008. 

The socioeconomic analysis herein did not consider the impact of 

the rebate program for early compliance by furnace manufacturers

because it is too speculative to predict which manufacturers would 

opt into the program.

Compliance Costs The average annual cost (from the years 2011 to 2025) of the 

proposed amendments is projected to be $30.4 million. Of the $30.4 

million cost, consumers would incur $22.9 million (75 percent) due 

to furnace replacements, and home and commercial builders will 

incur $7.3 million (24 percent) due to new construction. The $0.2 

million cost to real estate lessors represents furnace replacements in 

existing commercial properties. Furnace manufacturers in 2011 

would also incur a minor cost for certification tests for mobile home 

furnaces. 

Employment Impacts A macroeconomic analysis was performed to assess the overall job 

impacts of the proposed amendments on the entire local economy. It 

is estimated that an average of 221 jobs will be forgone annually 

from 2013 to 2025 across all industries in the four-county area, 

which is 0.002 percent of the average baseline jobs during the same 

period. There would be an additional 62 jobs created in the 

wholesale sector where local distributors of furnaces belong.

The sectors of construction, and real estate and rental and leasing,
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD iii October 2009

are projected to have an average of 47 and 36 annual jobs forgone, 

respectively. Consumers may reduce spending on other 

consumption items to compensate for increases in furnace prices. 

The most affected items would be those products and services sold 

by the industry of retail trade (NAICS 55). For example, there 

would be 50 annual jobs forgone in this sector.

Competitiveness Compared to its national counterparts, the proposed amendments 

could result in an increase of 0.01 to 0.02 percent in the cost of 

production in the construction sector from 2015 to 2025. Similar 

increases are expected in the relative delivered price of products in 

that industry. The real estate and rental and leasing industry is 

projected to have increases in its relative cost of production and 

delivered prices by 0.01 percent at most. No changes in the cost of 

production or relative prices are observed in other industries. 

Overall, these impacts are not significant and thus would not affect 

the competitiveness of the four-county area. 
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 1 October 2009

INTRODUCTION

The proposed amendments to Rule 1111 (Reduction of NOx Emissions from Natural-Gas-Fired, 

Fan-type Central Furnaces) set NOx standards for natural-gas-fired, fan-type central furnaces. 

Mobile home furnaces sold and installed in the South Coast Air Quality Management District 

would have to comply with the 40 nanograms/joule (ng/J) NOx emission limit beginning on 

October 1, 2012 and 14 ng/J on October 1, 2018. Condensing, non-condensing, and weatherized 

furnaces are also required to comply with the 14 ng/J limit on October 1, 2014, October 1, 2015, 

and October 1, 2016, respectively. Compliant units are required to have proper labels displayed 

on them. Manufacturers of furnaces are required to demonstrate their compliance with an 

emission test protocol and test results. Furthermore, rebates would be offered to furnace 

manufacturers for their early compliance. Finally, sellers and installers of furnaces would have 

up to 300 days to clear their existing inventory. 

The proposed amendments would result in 2.5 tons of NOx emission reductions per day in 2023 

and less than one-tenth of a ton of NOx emission reductions per day in 2014. The proposed 

amendments would not change the furnace replacement schedule.

LEGISLATIVE MANDATES

The socioeconomic assessments at the AQMD have evolved over time to reflect the benefits and 

costs of regulations. The legal mandates directly related to the assessment of the proposed 

amendments include the AQMD Governing Board resolutions and various sections of the 

California Health & Safety Code (H&SC).

AQMD Governing Board Resolutions

On March 17, 1989 the AQMD Governing Board adopted a resolution that calls for preparing an 

economic analysis of each proposed rule for the following elements:

 Affected Industries

 Range of Control Costs

 Cost Effectiveness

 Public Health Benefits

On October 14, 1994, the Board passed a resolution which directed staff to address whether the 

rules or amendments brought to the Board for adoption are in the order of cost effectiveness as 

defined in the AQMP. The intent was to bring forth those rules that are cost effective first.

Health & Safety Code Requirements

The state legislature adopted legislation that reinforces and expands the Governing Board 

resolutions for socioeconomic assessments. H&SC Sections 40440.8(a) and (b), which became 

effective on January 1, 1991, require that a socioeconomic analysis be prepared for any proposed 

rule or rule amendment that "will significantly affect air quality or emissions limitations." 

Specifically, the scope of the analysis should include:
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 2 October 2009

 Type of Affected Industries

 Impact on Employment and the Economy of the District

 Range of Probable Costs, Including Those to Industries

 Emission Reduction Potential

 Necessity of Adopting, Amending or Repealing the Rule in Order to Attain State and Federal 

Ambient Air Quality Standards

 Availability and Cost Effectiveness of Alternatives to the Rule

For the necessity of rule adoption and cost effectiveness of alternatives to the rule, please refer to 

the Staff Report for Proposed Amended Rule 1111. Additionally, the AQMD is required to 

actively consider the socioeconomic impacts of regulations and make a good faith effort to 

minimize adverse socioeconomic impacts. H&SC Section 40728.5, which became effective on 

January 1, 1992, requires the AQMD to: 

 Examine the type of industries affected, including small businesses; and

 Consider Socioeconomic Impacts in Rule Adoption

H&SC Section 40920.6, which became effective on January 1, 1996, requires that incremental 

cost effectiveness be performed for a proposed rule or amendment relating to ozone, carbon 

monoxide (CO), oxides of sulfur (SOx), oxides of nitrogen (NOx), and their precursors. 

Incremental cost effectiveness is defined as the difference in costs divided by the difference in 

emission reductions between one level of control and the next more stringent control. Please 

refer to the rule Staff Report for such analysis.

AFFECTED FACILITIES

The proposed amendments would directly affect manufacturers of natural-gas-fired, fan-type 

central furnaces because burners would have to be re-designed to achieve the NOx limits. 

However, no manufacturers are located in the four-county area. Since furnaces are sold through 

local distributors (NAICS 423730—Warm Air Heating and Air-Conditioning Equipment and 

Supplies Merchant Wholesalers) and installers (NAICS 238220—Plumbing, Heating, and AirConditioning Contractors), they will be indirectly affected. Residential and commercial property 

owners (consumers and real estate lessors, respectively), as well as builders for new construction 

will pay a higher price (incremental manufacturing cost plus markup) resulting from the 

proposed amendments. Local distributors and installers will benefit from markups on 

incremental costs through additional sales dollars.

Small Businesses

The AQMD defines a "small business" in Rule 102 as one which employs 10 or fewer persons 

and which earns less than $500,000 in gross annual receipts. In addition to the AQMD's 

definition of a small business, the federal Small Business Administration (SBA), the federal 

Clean Air Act Amendments (CAAA) of 1990, and the California Department of Health Services 

(DHS) also provide definitions of a small business.

The SBA's definition of a small business uses the criteria of gross annual receipts (ranging from 

$0.5 million to $25 million), number of employees (ranging from 100 to 1,500), megawatt hours 
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 3 October 2009

generated (4 million), or assets ($150 million), depending on industry type. The SBA definitions 

of small businesses vary by 6-digit North American Industrial Classification System (NAICS) 

code.

The CAAA classifies a facility as a "small business stationary source" if it: (1) employs 100 or 

fewer employees, (2) does not emit more than 10 tons per year of either VOC or NOx, and (3) is 

a small business as defined by SBA.

There are no manufacturers of furnaces in the four-county area. Based on the information 

provided by the NAICS Association, there are 234 distributors of furnaces in the area, of which 

191 are small businesses (fewer than 100 employees) under the federal SBA definition and 95 

are small businesses under the AQMD definition. Emission data on distributors is not available 

to determine whether a business is small under the CAAA definition. 

According to the 2007 County Business Patterns, there were 3,802 installers in the four-county 

area. However, the lack of data on sales, employment, and emissions prevents the assessment of 

small business status of a facility. Sales, employment, and emission data on affected lessors of 

real estate and affected home and commercial builders is not available either. Therefore, their 

small business status cannot be determined.

COMPLIANCE COSTS

The proposed amendments will affect several types of furnaces. Mobile home furnaces have a 

two-phase compliance schedule. AQMD staff assumes that the incremental cost of a mobile 

home furnace to consumers resulting from the NOx emission limit of 40 ng/J in 2012 is 

estimated to be $10. It is estimated that approximately 15 tests nationwide will be conducted to 

certify these compliant furnaces. One-third of such tests would be conducted in a testing lab in 

Los Angeles County at a cost of $1,200 per test.

AQMD staff estimated that the incremental cost of a furnace meeting the 14 ng/J NOx limit to 

consumers regardless of its type (mobile home, condensing, non-condensing, or weatherized)

would be between $108 and $240, despite the compliance years being staggered by type of 

furnace (from 2014 to 2018). Please refer to the Staff Report for details of these estimates. For 

the purpose of the socioeconomic analysis herein, the average cost of $174 [= (108 + 240)/2] per 

furnace is assumed. This cost includes material costs and certification tests to furnace 

manufacturers, markups at various sales stages, and any other necessary cost to bring a furnace 

to consumers. The early compliance incentive will help to partially offset R&D costs for 

furnaces in the event manufacturers take advantage of it. The AQMD planned funding for 

product development and R&D plans might reduce the $174 incremental cost.

Based on the upper end price of a furnace at $2,000, implementation of the proposed 

amendments would, at most, result in an average 8.7 percent increase in the price of a furnace. 

This increase is relatively small given the average 25-year life of a furnace. 

The proposed amendments would affect new and replaced furnaces. It is estimated that there are 

4.5 million existing furnaces in the four-county area, of which four percent are mobile home 
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 4 October 2009

furnaces, 26 percent condensing furnaces, 60 percent non-condensing furnaces, and 10 percent 

weatherized furnaces. Since existing non-mobile home furnaces located in commercial 

properties are expected to be very low, staff assumed one percent for this analysis.

The number of affected furnaces each year is estimated by assuming an annual four percent

replacement rate (based on an average life of 25 years for a furnace) on the existing 4.5 million

furnace stock plus the growth in the number of furnaces each year. A projection of the number 

of new furnaces between 2012 and 2025 was performed based on the existing furnace stock and

the annual compounded growth rate of housing units between 2000 and 2008 for mobile homes 

and occupied housing units in each county, as shown in Table 1.1 This data is based on more 

current data and more updated than the 2007 Air Quality Management Plan (AQMP), which was 

based on the 2002 data and did not include mobile home growth rate. For the purpose of the 

analysis herein, it is assumed that there would be no growth of mobile home furnaces between 

2012 and 2025 in Orange County. The share of each county’s total number of furnaces in the 

four-county area is based on the number of housing units in each county in 2008. 

Table 1

Annual Compounded Growth Rates 

by Type of Housing Units by County (2000 – 2008)

Los Angeles Orange Riverside San Bernardino

Mobile Homes 0.018% -0.136% 0.524% 0.830%

Occupied Housing Units 0.497% 0.789% 3.586% 1.723%

Calculated based on data downloaded from http://www.dof.ca.gov/research/demographic/reports/estimates/e5_2001-06/.

Based on the assumptions above, the average annual cost (from the years 2011 to 2025) of the 

proposed amendments is projected to be $30.4 million, as shown in Table 2. Of the total annual 

$30.4 million cost, consumers would incur $22.9 million (75 percent) due to furnace 

replacements, and home and commercial builders will incur $7.3 million (24 percent) due to new 

construction. The $0.2 million cost to real estate lessors represents furnace replacements in 

existing commercial properties. The cost to furnace manufacturers in 2011 represents the 

certification tests for complying with the 40 ng/J NOx limit for mobile home furnaces in 2012. 

Table 2

Cost of Proposed Amendments by Industry (in millions of dollars)

Industry

2011 2012 2014 2015 2016 2018 2025

Average 

Annual 

(2011-2025)

Furnace Manufacturers $0.018 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.001 

Consumers $0.000 $0.072 $8.134 $26.738 $29.839 $31.019 $31.019 $22.856 

Real Estate Lessors $0.000 $0.000 $0.081 $0.269 $0.301 $0.301 $0.301 $0.224 

Home & Commercial 

Builders $0.000 $0.003 $2.329 $7.859 $8.961 $9.407 $10.984 $7.312 

Total $0.018 $0.075 $10.544 $34.867 $39.100 $40.727 $42.304 $30.394 

 

1

http://www.dof.ca.gov/research/demographic/reports/estimates/e-5_2001-06/, downloaded September 11, 2009.
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 5 October 2009

The socioeconomic analysis herein did not consider the impact of the rebate program for early 

compliance by furnace manufacturers because it is too speculative to predict which 

manufacturers would opt into the program.

TOTAL IMPACTS

The REMI model (PI+ v1.0.116) is used to assess the total socioeconomic impacts of a policy 

change (i.e., the proposed amendments). The model links the economic activities in the counties 

of Los Angeles, Orange, Riverside, and San Bernardino. The REMI model for each county is 

comprised of a five block structure that includes (1) output and demand, (2) labor and capital, (3) 

population and labor force, (4) wages, prices and costs, and (5) market shares. These five blocks 

are interrelated. Within each county, producers are made up of 165 private non-farm industries, 

three government sectors, and a farm sector. Trade flows are captured between sectors as well as 

across the four counties and the rest of U.S. Market shares of industries are dependent upon their 

product prices, access to production inputs, and local infrastructure. The demographic/migration 

component has 160 ages/gender/race/ethnicity cohorts and captures population changes in births, 

deaths, and migration. 

The assessment herein is performed relative to a baseline of the existing Rule 1111. Direct 

effects of the policy change (proposed amendments) have to be estimated and used as inputs to 

the REMI model in order for the model to assess secondary and induced impacts for all the 

actors in the four-county economy on an annual basis and across a user-defined horizon (2011 to 

2025). Direct effects of PAR 1111 include additional costs to the affected entities and additional 

sales of furnaces that meet the proposed limits by local vendors at the county level and by 

industry.

The job impact analysis considers the incremental prices to buyers of compliant furnaces. The 

buyers of replacement furnaces are homeowners and lessors of commercial real estate properties. 

In general, any rise in furnace prices would tend to reduce purchasing power of homeowners and 

increase the cost of doing business for the lessors (NAICS 5311—Lessors of Real Estate). For 

new housing units, a rise in furnace prices would also tend to increase the cost of doing business 

for home and commercial builders (NAICS 236—Construction of Buildings). On the other 

hand, the local distributors of furnaces (NAICS 42—Wholesale Trade) will benefit from the 

additional sales of furnaces and installers of furnaces will benefit from the price markup.

2

 There 

would also be minor benefit to the industry of professional and technical services (NAICS 54)

resulting from certification tests conducted in Los Angeles County. The following sections 

attempt to quantity the magnitude of impacts mentioned above, which are relatively minor 

compared to the overall economy.

Employment Impact by Industry

The total employment impact of the proposed amendments across industries in key years is 

shown in Table 3. It is estimated that an average of 221 jobs will be forgone annually from 2013

 

2The wholesale portion of the incremental cost is approximately 75 percent of the incremental cost based on the 

markups at various production/selling stages of residential furnaces (Table 5.7.1 in US DOE, 2007). The remaining 

25 percent markup from installers to consumers becomes (proprietors’) income to the installers.
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 6 October 2009

to 2025 across all industries in the four-county area, which is 0.002 percent of the average 

baseline jobs during the same period. No job impacts are projected for 2012 and 2013. There 

would be an additional 62 jobs created in the wholesale sector where local distributors of 

furnaces belong. The job creation is due to the projected rise in furnace prices.

Increases in prices of furnaces are translated to reductions in consumers’ purchasing power and 

the increased cost of doing business for affected industries. The sectors of construction, and real 

estate and rental and leasing are projected to have an average of 47 and 36 annual jobs forgone, 

respectively, resulting from purchasing compliant furnaces. Consumers may reduce spending on 

other consumption items to compensate for increases in prices of furnaces. The most affected 

items would be those products and services sold by the industry of retail trade (NAICS 55). For 

example, there would be 50 annual jobs forgone in this industry.

Table 3

Job Impact of Proposed Amendments by Industry by Year

Industry Title NAICS

Year

2014 2015 2016 2018 2025

Average Annual 

(2013 - 2025)

Forestry, Fishing, Related Activities, and 

Other 113-115 0 0 0 0 -1 -1

Utilities 22 0 0 0 0 -1 0

Construction 23 -7 -27 -42 -56 -60 -47

Manufacturing 31 - 33 -2 -8 -13 -20 -31 -19

Wholesale Trade 42 27 85 88 80 53 62

Retail Trade 44 - 45 -11 -38 -47 -55 -69 -50

Transportation and Warehousing 48 - 49 0 0 -2 -5 -10 -5

Information 51 0 -1 -2 -3 -6 -3

Finance and Insurance 52 -1 -5 -9 -14 -23 -14

Real Estate and Rental and Leasing 53 -4 -17 -25 -36 -58 -36

Professional and Technical Services 54 1 0 -6 -15 -36 -18

Management of Companies and Enterprises 55 0 1 0 -1 -3 -1

Administrative and Waste Services 56 2 4 0 -8 -22 -10

Educational Services 61 0 0 -1 -4 -10 -5

Health Care and Social Assistance 62 0 -1 -6 -13 -36 -17

Arts, Entertainment, and Recreation 71 0 -1 -3 -5 -11 -6

Accommodation and Food Services 72 0 -2 -6 -13 -30 -15

Other Services, except Public Administration 81 -1 -3 -7 -11 -23 -12

Government 92 0 -1 -9 -22 -49 -25

Total 4 -14 -88 -203 -428 -221

Competitiveness

The additional costs resulting from the proposed amendments could increase the cost of 

production of the affected industries relative to their national counterparts. Changes in relative 

production costs would thus be a good indicator of changes in relative competitiveness. The 
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 7 October 2009

magnitude of the impact depends on the size and diversification of, and infrastructure in a local 

economy, as well as interactions among industries. A large, diversified, and resourceful 

economy would absorb the impact with relative ease. The relative cost of production in the 

construction industry is projected to rise by 0.01 percent in 2015 and by 0.02 percent from 2016 

to 2025, compared to its national counterparts. The relative cost of production in the industry of 

real estate and rental and leasing would have a slight rise of 0.01 percent in 2016 only. Impacts 

on other industries are not observed.

Changes in production costs will affect prices of goods produced locally. The relative delivered 

price of a good is based on its production cost and the transportation cost of delivering the good 

to where it is consumed or used. The average price of a good at the place of use reflects prices of 

the good produced locally and imported elsewhere. The construction industry is projected to 

have the same magnitude of increases in its relative prices as in the cost of production. The 

increases in prices for the real estate and rental and leasing industry are projected to be 0.01

percent from 2015 to 2023. No projected price increases are forecasted for other industries.

RULE ADOPTION RELATIVE TO THE COST EFFECTIVENESS 

SCHEDULE

On October 14, 1994, the Governing Board adopted a resolution that requires staff to address 

whether rules being proposed for adoption are considered in the order of cost-effectiveness. The 

2007 Air Quality Management Plan (AQMP) ranked, in the order of cost-effectiveness, all of the 

control measures for which costs were quantified. It is generally recommended that the most 

cost-effective actions be taken first.

The proposed amendments to Rule 1111 implement control measure CMB-03 (NOx Reductions 

from Residential Space Heaters) in the 2007 AQMP. Cost-effectiveness of control measure 

CMB-03 was estimated to be $10,000 per ton of NOx reduced, which resulted in being ranked 

7

th out of 12 stationary source control measures. The cost-effectiveness of the proposed 

amendments is estimated to be between $8,600 and $19,000 per ton of NOx reduced.
Proposed Amended Rule 1111 Socioeconomic Report

SCAQMD 8 October 2009

REFERENCES

California Department of Finance. E-5 City/County Population and Housing Estimates. 

Downloaded September 11, 2009 from 

http://www.dof.ca.gov/research/demographic/reports/estimates/e-5_2001-06/.

NAICS Association. June 26, 2009 Electronic Mail Message from mitch@naics.com on Facility 

List for Furnace Manufacturers and Distributors in the Counties of Los Angeles, Orange, 

Riverside, and San Bernardino.

Regional Economic Models, Inc. REMI PI+ version 1.0.116. Amherst, MA. 2009.

SCAQMD. Preliminary Draft Staff Report for Proposed Amended Rule 1111—NOx Emissions 

from Natural-Gas-Fired, Fan-type Central Furnaces. Diamond Bar, CA. September 2009.

South Coast Air Quality Management District (SCAQMD). Final 2007 AQMP. Diamond Bar, 

CA. 2007.

U.S. Department of Energy (DOE). Energy Conservation Standards for Residential Furnaces 

and Boilers. Washington, DC. September 2007

U.S. Small Business Administration. Table of Small Business Size Standards. Washington. DC. 

2008.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 

Final Environmental Assessment for Proposed Amended Rule 1111 – NOx Emissions from 

Natural-Gas-Fired, Fan-Type Central Furnaces 

November 2009 

SCAQMD No. 090902JI 

State Clearinghouse No: TBD 

Executive Officer 

Barry R. Wallerstein, D. Env. 

Deputy Executive Officer 

Planning, Rule Development and Area Sources 

Elaine Chang, DrPH 

Assistant Deputy Executive Officer 

Planning, Rule Development and Area Sources 

Laki Tisopulos, Ph.D., P.E. 

Planning and Rules Manager 

Planning, Rule Development and Area Sources 

Susan Nakamura 

Author: Jeffrey J. Inabinet Air Quality Specialist 

Contributors: Wayne Barcikowski Air Quality Specialist 

 

Reviewed By: Steve Smith, Ph.D. Program Supervisor, CEQA 

 Joe Cassmassi Planning and Rules Manager, Planning, Rule 

 Development, and Area Sources 

 Gary Quinn, P.E. Program Supervisor, Planning, Rule Development, 

 and Area Sources 

 Barbara Baird District Counsel 

 Ruby Fernandez Deputy District Counsel II 
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 

GOVERNING BOARD 

CHAIRMAN: WILLIAM A. BURKE, Ed.D. 

Speaker of the Assembly Appointee 

 

VICE CHAIRMAN: DENNIS YATES 

Mayor, City of Chino 

 Cities Representative, San Bernardino County

MEMBERS: 

MICHAEL D. ANTONOVICH 

Supervisor, Fifth District 

Los Angeles County Representative 

MICHAEL A. CACCIOTTI 

Councilmember, City of South Pasadena 

Cities of Los Angeles County, Eastern Region 

BILL CAMPBELL 

 Supervisor, Third District 

Orange County Representative 

JANE CARNEY 

Senate Rules Committee Appointee 

RONALD O. LOVERIDGE 

Mayor, City of Riverside 

Cities Representative, Riverside County 

JOSEPH K. LYOU, Ph.D. 

Governor's Appointee 

JOSIE GONZALES 

Supervisor, Fifth District 

San Bernardino County Representative 

JAN PERRY 

Councilwoman, 9th District 

 City of Los Angeles Representative 

MIGUEL A. PULIDO 

 Mayor, City of Santa Ana 

Cities Representative, Orange County 

TONIA REYES URANGA 

Councilwoman, City of Long Beach 

Cities of Los Angeles County, Western Region 

MARION ASHLEY 

Supervisor, Fifth District 

Cities Representative, Riverside County 

EXECUTIVE OFFICER: 

BARRY R. WALLERSTEIN, D.Env. 
TABLE OF CONTENTS 

CHAPTER 1 - PROJECT DESCRIPTION 

Introduction ............................................................................................................................ 1-1 

California Environmental Quality Act ....................................................................................... 1-2 

Project Location ......................................................................................................................... 1-2 

Project Objective ........................................................................................................................ 1-3 

Project Background .................................................................................................................... 1-4 

Project Description..................................................................................................................... 1-5 

Summary of Affected Equipment and Methods of Compliance ................................................ 1-8 

CHAPTER 2 - ENVIRONMENTAL CHECKLIST 

Introduction ............................................................................................................................ 2-1 

General Information ................................................................................................................... 2-1 

Environmental Factors Potentially Affected .............................................................................. 2-2 

Determination ............................................................................................................................ 2-3 

Environmental Checklist and Discussion .................................................................................. 2-4 

APPENDICES 

Appendix A – Proposed Amended Rule 1111 

LIST OF FIGURES 

Figure 1-1: South Coast Air Quality Management District .................................................. 1-3 

LIST OF TABLES 

Table 1-1: Furnace NOx Limits and Compliance Schedule ................................................ 1-6 

Table 1-2: Estimated Number of Units Affected Schedule ................................................. 1-7 

Table 2-1: Air Quality Significance Thresholds ................................................................. 2-8 
PREFACE 

This document constitutes the Final Environmental Assessment (EA) for Proposed Amended 

Rule 1111 – NOx Emissions from Natural Gas-fired, Fan-type Central Furnaces. The Draft EA 

was released for a 30-day public review and comment period from September 24, 2009 to 

October 23, 2009. No comment letters were received from the public relative to the Draft EA. 

The environmental analysis in the Draft EA concluded that Proposed Amended Rule 1111 would 

not generate any significant adverse environmental impacts. 

 

Minor modifications were made to the proposed amended rule subsequent to release of the Draft 

EA for public review. To facilitate identifying modifications to the document, added and/or 

modified text is underlined. Staff has reviewed these minor modifications and concluded that 

they do not make any impacts substantially worse or change any conclusions reached in the Draft 

EA. As a result, these minor revisions do not require recirculation of the document pursuant to 

CEQA Guidelines §15088.5. Therefore, this document now constitutes the Final EA for 

Proposed Amended Rule 1111. 
C H A P T E R 1 - P R O J E C T D E S C R I P T I O N 

Introduction 

California Environmental Quality Act 

Project Location 

Project Objective 

Project Background 

Project Description 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-1 November 2009 

INTRODUCTION 

The California Legislature created the South Coast Air Quality Management District 

(SCAQMD) in 19771

 as the agency responsible for developing and enforcing air 

pollution control rules and regulations in the South Coast Air Basin (Basin) and portions 

of the Salton Sea Air Basin and Mojave Desert Air Basin referred to herein as the 

District. By statute, the SCAQMD is required to adopt an air quality management plan 

(AQMP) demonstrating compliance with all federal and state ambient air quality 

standards for the District2. Furthermore, the SCAQMD must adopt rules and regulations 

that carry out the AQMP3. The 2007 AQMP concluded that major reductions in

emissions of volatile organic compounds (VOCs), oxides of sulfur (SOx) and oxides of 

nitrogen (NOx) are necessary to attain the air quality standards for ozone and particulate 

matter (PM10 and PM2.5). Ozone, a criteria pollutant, is formed when VOCs react with 

NOx in the atmosphere and has been shown to adversely affect human health. NOx also 

contributes to the formation of PM10 and PM2.5. 

Proposed Amended Rule (PAR) 1111 implements AQMP control measure CMB-03 of 

the 2007 AQMP. Control Measure CMB-03 proposed NOx emission reductions of 50 to 

75 percent by requiring furnaces to meet a NOx emission limit of between 10 to 20 

nanograms per Joule (ng/J) of heat output [15 to 30 parts per million (ppm) at three 

percent oxygen]. The objective of PAR 1111 is to reduce NOx emissions from fan-type 

gas-fired residential furnaces. The proposed emission limit is 14 ng/J (20 ppm at 3% 

oxygen) with new mobile home units having to meet 40 ng/J in 2012 and 14 ng/J in 2018. 

The three main categories of furnace, condensing, non-condensing and weatherized, must 

meet the 14 ng/J limit in 2014, 2015 and 2016, respectively. Because an average lifetime 

for a residential furnace in Southern California is about 20-25 years, replacement with 14 

ng/J furnaces will not be completed until after 2043. 

Additionally, PAR 1111 updates references to test methods for determining compliance 

with rule emission limits and continues the SCAQMD program for manufacturers to 

certify the emission level of their products. It also provides more specificity in the 

labeling requirements. To facilitate the depletion of existing inventories, PAR 1111 also 

provides a temporary 10 month exemption (a sell through period) for units manufactured 

before the compliance date and delivered into the SCAQMD prior to the compliance date. 

In an effort to encourage the early introduction of the 14 ng/J units into the marketplace 

and provide manufacturers with a means of partially recovering their product 

development costs, PAR 1111 provides an incentive for early compliance. Specifically, 

manufacturers will be eligible to receive a rebate payment of $75 for each 14 nanograms 

per Joule standard efficiency furnace sold and delivered into the District 90 days prior to 

the applicable compliance date. Further, to promote the introduction of not just 

compliant but also more energy efficient units, the proposal offers manufacturers a rebate 

payment of $90 for each 14 ng/J high efficiency (greater than or equal to 90 percent 

 

1

 The Lewis-Presley Air Quality Management Act, 1976 Cal. Stats., ch 324 (codified at Health & Safety 

Code, §§40400-40540). 

2

 Health & Safety Code, §40460 (a). 

3

 Health & Safety Code, §40440 (a). 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-2 November 2009 

annual fuel utilization efficiency) furnace delivered and sold into the District 90 days 

prior to the compliance date. As funds are limited, payments for early compliance will be

on a first come first served basis. PAR 1111 proposes a cap of $3,000,000 on early 

compliance rebates to all manufacturers.

The previous draft version of the proposed amended rule included an alternative 

compliance option, which was analyzed in this document. PAR 1111 also provides 

manufacturers an This alternative compliance option envisioned that Formanufacturers 

that fail to develop compliant products by the proposed compliance dates, PAR 1111 

could allows a manufacturer to request an extension of the effective date of up to three 

years provided the manufacturer pays a mitigation fee for each unit distributed or sold 

into the SCAQMD. In addition to the compliance flexibility it will provide, the alternate 

compliance option iswas intended to balance business and environmental objectives. It 

willwould allow manufacturers that need more time for product development to continue 

distributing their existing products which willwould alleviate any potential disruption in 

product availability. 

As part of this alternative compliance option, for any category of furnace identified in the 

rule, a manufacturer maycould request a delayed compliance date of up to three years. 

To request a delay, a manufacturer must submit an alternative compliance plan that 

requests the alternative compliance date and identifies when compliant products will be 

manufactured and sold. The manufacturer must also submit a progress report with the 

alternative compliance plan and an annual progress report by the end of each year the 

manufacturer requests a delay. For each alternate compliance plan, the manufacturer 

must submit a sales report to the SCAQMD every six months identifying the number of 

units shipped into the District, where the units were sent, and must pay a mitigation fee of 

$213 for each unit shipped into the District. The mitigation fee willwould be used by the 

SCAQMD to fund NOx emission reduction projects in the District. 

It is estimated that there are over four million residential type heating furnaces in the 

SCAQMD. A typical furnace emits more than one and a half pounds of NOx per year. 

SCAQMD staff has estimated that PAR 1111 will reduce emissions from an individual 

furnace by more than one pound per year. The proposed amended rule is estimated to 

reduce annual average emissions of NOx by less than 0.1 ton per day by 2014 and 2.53.1

tons per day by 2023. 

CALIFORNIA ENVIRONMENTAL QUALITY ACT 

PAR 1111 regulates NOx emissions from fan-type gas-fired residential furnaces. 

Because the proposed project requires discretionary approval by a public agency, it is a 

“project” as defined by the California Environmental Quality Act (CEQA). SCAQMD is 

the lead agency for the proposed project and has prepared this Final Environmental 

Assessment (EA) with no significant adverse impacts pursuant to its Certified Regulatory 

Program. California Public Resources Code §21080.5 allows public agencies with 

regulatory programs to prepare a plan or other written document in lieu of an 

environmental impact report once the Secretary of the Resources Agency has certified the 

regulatory program. SCAQMD's regulatory program was certified by the Secretary of 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-3 November 2009 

the Resources Agency on March 1, 1989, and is codified as SCAQMD Rule 110. 

Pursuant to Rule 110, SCAQMD has prepared this Final EA. 

CEQA and Rule 110 require that potential adverse environmental impacts of proposed 

projects be evaluated and that feasible methods to reduce or avoid significant adverse 

environmental impacts of these projects be identified. To fulfill the purpose and intent of 

CEQA, the SCAQMD has prepared this Final EA to address the potential adverse 

environmental impacts associated with the proposed project. The Final EA is a public 

disclosure document intended to: (a) provide the lead agency, responsible agencies, 

decision makers and the general public with information on the environmental effects of 

the proposed project; and, (b) be used as a tool by decision makers to facilitate decision 

making on the proposed project. 

SCAQMD’s review of the proposed project shows that the project would not have a 

significant adverse effect on the environment. Therefore, pursuant to CEQA Guidelines 

§15252, no alternatives or mitigation measures are required to be included in this Final

EA. The analysis in Chapter 2 supports the conclusion of no significant adverse 

environmental impacts. 

PROJECT LOCATION 

PAR 1111 would apply to applicable natural gas-fired fan-type residential furnaces 

within the jurisdiction of the SCAQMD. The SCAQMD has jurisdiction over an area of 

10,473 square miles, consisting of the four-county South Coast Air Basin (Basin) and the 

Riverside County portions of the Salton Sea Air Basin (SSAB) and the Mojave Desert 

Air Basin (MDAB). The Basin, which is a subarea of the District, is bounded by the 

Pacific Ocean to the west and the San Gabriel, San Bernardino, and San Jacinto 

Mountains to the north and east. The 6,745 square-mile Basin includes all of Orange 

County and the non-desert portions of Los Angeles, Riverside, and San Bernardino 

counties. The Riverside County portion of the SSAB and MDAB is bounded by the San 

Jacinto Mountains in the west and spans eastward up to the Palo Verde Valley. The 

federal non-attainment area (known as the Coachella Valley Planning Area) is a 

subregion of both Riverside County and the SSAB and is bounded by the San Jacinto 

Mountains to the west and the eastern boundary of the Coachella Valley to the east 

(Figure 1-1). 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-4 November 2009 

S outh C oast

A ir Q uality M anagem ent D istrict

 SC AQ M D Ju risdiction

M ojave D esert

A ir B asin

S alton S ea

A ir B asin

S an D iego

A ir B asin

S outh

 C entral

 C oast A ir B asin

S outh C oast

 A ir B asin

San D iego C ounty

Im perial C ounty

R iverside C ounty

Los A ngeles

 C ounty

K ern C ounty San B ernardino C ounty

O range

 C ounty

Santa 

 B arbara

 C ounty

V entura 

 C ounty

S an Joaquin

 V alley

 A ir B asin

Figure 1-1 

Boundaries of the South Coast Air Quality Management District 

PROJECT OBJECTIVE 

The general project objectives of PAR 1111 are summarized as the following: 

• Implement 2007 AQMP control measure CMB-03 

• Reduce annual average emissions of NOx by 0.1 ton per day by less than and 

2.53.1 tons per day by 2023 

• Obtain NOx emissions reductions that will contribute to attain and maintain state 

and federal PM 2.5 and eight-hour ozone standards 

• Promote implementation of BACT. 

PROJECT BACKGROUND 

PAR 1111 is based on Control Measure CMB-03 of the SCAQMD 2007 AQMP. Control 

Measure CMB-03 proposed NOx emission reductions of 50 to 75 percent by requiring 

furnaces to meet a NOx emission limit of between 10 to 20 ng/J of heat output (15 to 30 

ppm). 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-5 November 2009 

Rule 1111 was passed by the SCAQMD Governing Board in December 1978. Beginning 

January 1, 1984, the rule required residential furnaces to meet a NOx emission limit of 40 

ng/J of heat output (equivalent to 55 ppm at 3% oxygen). The rule also requires 

manufacturers to obtain certification of each furnace model based on source testing using 

specific test methods identified in the rule and approved by the District. In addition, the 

rule requires manufacturers to identify the model number of the furnace on a permanent 

rating plate and the shipping container. At the time of adoption, the SCAQMD Board 

also considered a requirement that furnaces meet a 12 ng/J NOx emission limit by 1995. 

Rule 1111 was amended by the SCAQMD Board in July 1983 in order to place an upper 

limit on the size of equipment to limit applicability to units used in residences and small 

commercial buildings. The rule amendment limited applicability to furnaces with a heat 

input of less than 175,000 British thermal units per hour (Btu/hr), or for combination 

heating and cooling units, a cooling rate of less than 65,000 Btu/hr. The 1983 

amendment also revised the definition of efficiency, exempted units manufactured for use 

in mobile homes (manufactured housing), and clarified testing procedures. 

 

PAR 1111 affects manufacturers (NAICS 333), distributors and wholesalers (NAICS 

423), as well as sales outlets (NAICS 44-45) and installers (NAICS 23) of natural gasfired furnaces in the District. The units affected by the proposed amended rule are 

primarily located in residential settings, however, they may include units found in small 

commercial buildings. SCAQMD staff estimates that there are approximately 4.5 million 

units currently in the District that will be affected by PAR 1111. 

PAR 1111 requires new residential heating furnaces to meet lower NOx emission limits 

starting in 2012. Table 1-1 identifies compliance dates and emission limits for different 

categories of furnace. Starting October 1, 2012, new mobile home furnaces must meet an 

emission limit of 40 ng/J heat output. Starting October 1, 2014, a 14 ng/J NOx limit is 

phased-in for new furnaces. All new units must meet the 14 ng/J NOx limit by October 

1, 2018. 

 Table 1-1 – Furnace NOx Limits and Compliance Schedule 

The proposed 40 ng/J emission limit for mobile home furnaces is based on the current 

technology for other residential furnaces. This emission level can be achieved using 

current burners. The proposed new 14 ng/J limit is based on several factors. The first is 

Compliance Date Equipment Category NOx Emission Limit 

(ng/J) 

October 1, 2012 Mobile Home Furnace 40 

October 1, 2014 Condensing Furnace 14 

October 1, 2015 Non-condensing Furnace 14 

October 1, 2016 Weatherized Furnace 14 

October 1, 2018 Mobile Home Furnace 14 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-6 November 2009 

that the new burner technology will be the same for any emission limit between 10 and 

20 ng/J. While 10 ng/J has already been achieved in practice by residential tank-type 

water heaters subject to Rule 1121, a higher limit such as 14 ng/J would be more 

appropriate for natural gas-fired furnaces because of the likely higher energy output per 

square inch of burner surface anticipated in residential heating furnaces. 

Based on Air Conditioning, Heating, and Refrigeration Institute (AHRI) data and 

SCAQMD staff projections, an average of approximately 180,000 units are sold each 

year in the SCAQMD. The average lifetime of a unit is estimated to be approximately 

20-25 years. SCAQMD staff has also estimated that approximately four percent of the 

units in Southern California are utilized in mobile homes / manufactured housing, 26 

percent are condensing units, 60 percent are non-condensing (standard) units, and 10 

percent are weatherized units. Based on these SCAQMD staff percentages and the 

proposed PAR 1111 compliance schedule, Table 1-2 depicts the approximate number of 

units that will be affected during the following time increments based on unit 

replacement after its estimated useful life (20-25 years). 

Table 1-2 – Estimated Number of Units Affected Schedule

Time Period Equipment Category Number of Units Affected 

(per year)

2012-2018 Mobile Home Units 7,200 

2014-2038 Condensing Units 46,800 

2015-2039 Non-Condensing (standard) 

Units 108,000 

2016-2040 Weatherized Units 18,000 

2018-2042 Mobile Home Furnace 7,200 

PROJECT DESCRIPTION 

The following summarizes the key components of the proposed amended rule. A copy of 

PAR 1111 is included in Appendix A. 

Purpose and Applicability [subdivision (a)]

The purpose of this rule is to reduce NOx emissions from natural gas-fired, fan-type 

central furnaces, as defined in this rule. This rule applies to residential and commercial 

fan-type central furnaces, requiring either single-phase or three-phase electric supply, 

used for comfort heating with a rated heat input capacity of less than 175,000 BTU per 

hour; or, for combination heating and cooling units, a cooling rate of less than 65,000 

BTU per hour. 

Definitions [subdivision (b)]

The following definitions are included in PAR 1111:

• “Annual fuel utilization efficiency (AFUE)” [paragraph (b)(1)] 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-7 November 2009 

• “BTU” [paragraph (b)(2)] 

• “Condensing furnace” [paragraph (b)(3)] 

• “Fan type central furnace” [paragraph (b)(4)] 

• “Heat input” [paragraph (b)(5)] 

• “NOx emissions” [paragraph (b)(6)] 

• “Rated heat input capacity” [paragraph (b)(7)] 

• “Responsible official” [paragraph (b)(8)] 

• “Single firing rate” [paragraph (b)(9)] 

• “Useful heat delivered to the heated space” [paragraph (b)(10)] 

• “Variable firing rate” [paragraph (b)(11)] 

• “Weatherized” [paragraph (b)(12)] 

Requirements [subdivision (c)]

PAR 1111 requires new residential heating furnaces to meet lower NOx emission limits 

starting in 2012. Table 1-1 identifies compliance dates and emission limits for different 

categories of furnace. Starting October 1, 2012, new mobile home furnaces must meet an 

emission limit of 40 ng/J heat output. Starting October 1, 2014, a 14 ng/J NOx limit is 

phased-in for new furnaces. All new units must meet the 14 ng/J NOx limit by October 

1, 2018. The proposed amended rule will not change the current natural gas-fired furnace 

distribution system and will not change the replacement schedule of existing furnaces. 

The proposed 40 ng/J emission limit for mobile home furnaces is based on the current 

technology for other residential furnaces. This emission level can be achieved using 

current burners. The proposed new 14 ng/J limit is based on several factors. The first is 

that the new burner technology will be the same for any emission limit between 10 and 

20 ng/J. While 10 ng/J has already been achieved in practice by residential tank-type 

water heaters subject to Rule 1121, a higher limit such as 14 ng/J would be more 

appropriate in because of the likely higher energy output per square inch of burner 

surface anticipated in residential heating furnaces.

Certification, Identification of Compliant Units, and Enforcement [subdivisions (d), (e), 

and (f)]

PAR 1111 updates references to test methods for determining compliance with rule 

emission limits and continues the SCAQMD program for manufacturers to certify the 

emission level of their products. PAR 1111 also makes labeling requirements more 

specific. The SCAQMD will inspect distributors, retailers and installers and conduct 

tests as necessary to ensure compliance with emission limits, the certification program, 

and labeling requirements. 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-8 November 2009 

Exemptions [subdivision (g)]

To allow for the depletion of existing inventories, PAR 1111 allows a temporary 300 day 

exemption for units manufactured before the compliance date and delivered into the 

SCAQMD prior to the compliance date. PAR 1111 also continues the current exemption 

for mobile home furnaces installed in mobile homes before October 1, 2012.until these 

units must comply with the 40 ng/J NOx emission limit on October 1, 2012. As the rule 

only applies to natural gas-fired units, exemptions are not needed for units fired with 

other fuels.

Rebate Incentives for Early Compliance [subdivision (h)]

In an effort to encourage the early introduction of the 14 ng/J units into the marketplace 

and provide manufacturers with a means of partially recovering their product 

development costs, PAR 1111 provides an incentive for early compliance. Specifically, 

manufacturers will be eligible to receive a rebate payment of $75 for each 14 nanograms 

per Joule standard efficiency furnace sold and delivered into the District 90 days prior to 

the applicable compliance date. Further, to promote the introduction of not just 

compliant but also more energy efficient units, the proposal offers manufacturers a rebate 

payment of $90 for each 14 ng/J high efficiency (greater than or equal to 90 percent 

annual fuel utilization efficiency) furnace delivered and sold into the District 90 days 

prior to the compliance date. As funds are limited, payments for early compliance will be 

on a first come first served basis. PAR 1111 proposes a cap of $3,000,000 on early 

compliance rebates to all manufacturers.

Alternate Compliance Option 

Athough not part of the currently proposed amendments, an alternative compliance 

option was analyzed. ForUnder the alternative compliance option, manufacturers that fail 

to develop compliant products by the proposed compliance dates PAR 1111 may be 

revised to provides an alternative compliance option that allows a manufacturer to may 

request an extension of the effective date of up to three years provided the manufacturer 

pays a mitigation fee for each unit distributed or sold into the SCAQMD. The alternate 

compliance option is intended to allow manufacturers that need more time for product 

development to continue distributing their existing products which will alleviate any 

potential disruption in product availability. The mitigation fee component of the 

alternative compliance option will provide an ongoing incentive for manufacturers to 

continue their product development effort. 

As part of this alternative compliance option, for any category of furnace identified in the 

rule, a manufacturer may request a delayed compliance date of up to three years. To 

request a delay, a manufacturer must submit an alternative compliance plan that requests 

the alternative compliance date and identifies when compliant products will be 

manufactured and sold. The manufacturer must also submit a progress report with the 

alternative compliance plan and an annual progress report by the end of each year the 

manufacturer requests a delay. For each alternate compliance plan, the manufacturer 

must submit a sales report to the SCAQMD every six months identifying the number of 

units shipped into the District, where the units were sent, and must pay a mitigation fee of 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-9 November 2009 

$213 for each unit shipped into the District. The mitigation fee will be used by the 

SCAQMD to fund NOx emission reduction projects in the District. 

SUMMARY OF AFFECTED EQUIPMENT AND METHODS OF COMPLIANCE 

PAR 1111 affects manufacturers (NAICS 333), distributors and wholesalers (NAICS 

423), as well as sales outlets (NAICS 44-45) and installers (NAICS 23) of natural gasfired furnaces in the District. The AHRI, the manufacturer’s trade organization, indicates 

that there are no manufacturers of fan-type gas-fired residential furnaces in the 

SCAQMD. However, these companies do maintain regional sales offices and 

distribution centers in the SCAQMD. The units affected by the proposed amended rule 

are used mostly in residential structures, however, they may also be located in 

commercial settings for heating small buildings. The proposed amended rule will not 

change the current natural gas-fired furnace distribution system and will not change the 

replacement schedule of existing furnaces. 

Based on gas usage data from the California Energy Commission (CEC) and the 

Southern California Gas Company (SCGC), annual average NOx emissions from 

residential heating using natural gas were 9.7 tons per day (tons/day) in 2002 and are 

estimated to be 10.5 and 11.1 tons/day in 2012 and 2023 respectively. As most emissions 

occur between October and May, daily emissions in these months are higher. 

Compliance with PAR 1111 means that the equipment, at the time of manufacture, will 

be equipped with compliant low NOx burner technology that has been certified by the 

manufacturer to achieve the NOx emission standards. Compliance dates and emission 

limits for different categories of furnace are identified in Table 1-1. Starting October 1, 

2012, new mobile home furnaces must meet an emission limit of 40 ng/J heat output. 

Starting October 1, 2014, a 14 ng/J NOx limit is phased-in for new furnaces. All new 

units must meet the 14 ng/J NOx limit by October 1, 2018. It is estimated that there are 

over four million residential type heating furnaces in the SCAQMD. A typical furnace 

emits more than one and a half pounds of NOx per year. SCAQMD staff has estimated 

that PAR 1111 will reduce emissions from an individual furnace by more than one pound 

per year. The proposed amended rule is estimated to reduce annual average emissions of 

NOx by 0.1 ton per day by less than and 2.53.1 tons per day by 2023. 

The proposed 40 ng/J emission limit for mobile home furnaces is based on the current 

technology for other residential furnaces. This emission level can be achieved using 

current burners. The proposed new 14 ng/J limit is based on several factors. While low 

NOx burners are not currently used in residential furnaces, the technology is used in other 

applications. New burners developed for use in residential furnaces are likely to use 

improved premixing, staged combustion, and increased excess air. A burner developed 

for residential furnaces by the Gas Research Institute uses these technologies to reduce 

NOx emissions below 30 ppm (U.S. Patent 6,071,115). Another burner developed at 

Lawrence Berkeley National Laboratory uses these techniques and can achieve NOx 

emission levels as low as 10 ppm (http://eetd.lbl.gov/aet/combustion/LSC-info/). An 

alternative approach is to use increased surface area combined with premixing and 
Final Environmental Assessment: Chapter 1 

PAR 1111 1-10 November 2009 

increased excess air to reduce NOx emissions to as low as 15 ppm (10 ng/J). Two 

burners currently developed for use in residential tank type water heaters sold in the 

SCAQMD use these techniques. 
C H A P T E R 2 - E N V I R O N M E N T A L C H E C K L I S T 

Introduction 

General Information 

Environmental Factors Potentially Affected 

Determination 

Environmental Checklist and Discussion 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-1 November 2009 

INTRODUCTION 

The environmental checklist provides a standard evaluation tool to identify a project's potential 

adverse environmental impacts. This checklist identifies and evaluates potential adverse 

environmental impacts that may be created by the proposed project. 

GENERAL INFORMATION 

Project Title: Proposed Amended Rule 1111 – NOx Emissions From 

Natural Gas-Fired , Fan-Type Central Furnaces 

Lead Agency Name: South Coast Air Quality Management District 

Lead Agency Address: 21865 Copley Drive 

Diamond Bar, CA 91765 

CEQA Contact Person: Mr. Jeffrey Inabinet (909) 396-2453 

Rule 1147 Contact Person Mr. Wayne Barcikowski (909) 396-3077 

Project Sponsor's Name: South Coast Air Quality Management District 

Project Sponsor's Address: 21865 Copley Drive 

Diamond Bar, CA 91765 

General Plan Designation: Not applicable 

Zoning: Not applicable 

Description of Project: PAR 1111 will reduce NOx emissions from natural gasfired, fan-type central furnaces. PAR 1111 requires new 

residential heating furnaces to meet lower NOx emission 

limits starting in 2012. Starting October 1, 2012, new 

mobile home furnaces must meet an emission limit of 40 

ng/J heat output. Starting October 1, 2014, a 14 ng/J 

NOx limit is phased-in for new furnaces (based on 

category of furnace). All new units must meet the 14 

ng/J NOx limit by October 1, 2018. The proposed 40 

ng/J emission limit for mobile home furnaces is based on 

the current technology for other residential furnaces. The 

proposed 14 ng/J emission limit is based on low-NOx

burner technology used in other residential applications. 

The proposed amended rule will not change the current 

natural gas-fired furnace distribution system and will not 

change the replacement schedule of existing furnaces. 

The proposed amended rule is estimated to reduce annual 

average emissions of NOx by less than 0.1 ton per day by 

2014 and 2.53.1 tons per day by 2023. 

Surrounding Land Uses and 

Setting: 

Not applicable. 

Other Public Agencies Whose 

Approval is Required: 

Not applicable. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-2 November 2009 

ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED 

The following environmental impact areas have been assessed to determine their potential to be 

affected by the proposed project. As indicated by the checklist on the following pages, 

environmental topics marked with an "" may be adversely affected by the proposed project. 

An explanation relative to the determination of impacts can be found following the checklist for 

each area. 

Aesthetics Agriculture Resources Air Quality 

Biological Resources Cultural Resources Energy 

Geology/Soils Hazards & Hazardous 

Materials 

Hydrology/ 

Water Quality 

Land Use/Planning Mineral Resources Noise 

Population/Housing Public Services Recreation 

Solid/Hazardous Waste Transportation/ 

Traffic 

Mandatory 

Findings of 

Significance 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-3 November 2009 

DETERMINATION 

On the basis of this initial evaluation: 

 I find the proposed project, in accordance with those findings made pursuant to 

CEQA Guideline §15252, COULD NOT have a significant effect on the 

environment, and that an ENVIRONMENTAL ASSESSMENT with no 

significant impacts will be prepared. 

I find that although the proposed project could have a significant effect on the 

environment, there will NOT be significant effects in this case because 

revisions in the project have been made by or agreed to by the project 

proponent. An ENVIRONMENTAL ASSESSMENT with no significant 

impacts will be prepared. 

I find that the proposed project MAY have a significant effect(s) on the 

environment, and an ENVIRONMENTAL ASSESSMENT will be prepared. 

I find that the proposed project MAY have a "potentially significant impact" on 

the environment, but at least one effect 1) has been adequately analyzed in an 

earlier document pursuant to applicable legal standards, and 2) has been 

addressed by mitigation measures based on the earlier analysis as described on 

attached sheets. An ENVIRONMENTAL ASSESSMENT is required, but it 

must analyze only the effects that remain to be addressed. 

I find that although the proposed project could have a significant effect on the 

environment, because all potentially significant effects (a) have been analyzed 

adequately in an earlier ENVIRONMENTAL ASSESSMENT pursuant to 

applicable standards, and (b) have been avoided or mitigated pursuant to that 

earlier ENVIRONMENTAL ASSESSMENT, including revisions or mitigation 

measures that are imposed upon the proposed project, nothing further is 

required. 

Date: November 6, 2009 Signature:

 Steve Smith, Ph.D. 

 Program Supervisor 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-4 November 2009 

ENVIRONMENTAL CHECKLIST AND DISCUSSION 

As discussed in Chapter 1, the main focus of PAR 1111 is to reduce NOx emissions from natural 

gas-fired, fan-type central furnaces. The units regulated by PAR 1111 are primarily located in 

residential settings, however, they may also be found include units in small commercial 

buildings. PAR 1111 requires new residential heating furnaces to meet lower NOx emission 

limits starting in 2012. Starting October 1, 2012, new mobile home furnaces must meet an 

emission limit of 40 ng/J heat output. Starting October 1, 2014, a 14 ng/J NOx limit is phased-in 

for new furnaces (based on category of furnace). All new units must meet the 14 ng/J NOx limit 

by October 1, 2018. The proposed 40 ng/J emission limit for mobile home furnaces is based on 

the current technology for other residential furnaces. The proposed 14 ng/J emission is based on 

low-NOx burner technology used in other residential applications. The proposed amended rule 

is estimated to reduce annual average emissions of NOx by 0.1 ton per day by less than and 

2.53.1 tons per day by 2023. 

Manufacturers, distributors, retailers, and installers of new units will be expected to comply with 

the proposed requirements in PAR 1111. Compliance with PAR 1111 for a new unit means that 

the equipment, at the time of manufacture, will be equipped with compliant low NOx burner 

technology that has been certified by the manufacturer to achieve the NOx emission standards. 

Currently existing units are not required to comply with the new NOx emission limits. 

Therefore, no add-on control equipment is expected to be used. As a result, complying with 

PAR 1111 is not expected to require any activities using welders, forklifts, etc., to remove and 

install new equipment or replace old burners with compliant low NOx burners. Since compliant 

units will be installed at the end of existing units operable lifetimes in existing equipment 

locations, no site preparation or grading activities requiring large construction equipment will be 

necessary. Thus, answers to the following checklist items are based on the assumption that 

compliant low NOx burner technology at the time of manufacture will be used to meet the 

requirements of PAR 1111. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

I. AESTHETICS. Would the project: 

a) Have a substantial adverse effect on a scenic 

vista? 



b) Substantially damage scenic resources, 

including, but not limited to, trees, rock 

outcroppings, and historic buildings within a 

state scenic highway? 



c) Substantially degrade the existing visual 

character or quality of the site and its 

surroundings? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-5 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

d) Create a new source of substantial light or glare 

which would adversely affect day or nighttime 

views in the area? 



Significance Criteria 

The proposed project impacts on aesthetics will be considered significant if: 

- The project will block views from a scenic highway or corridor. 

- The project will adversely affect the visual continuity of the surrounding area. 

- The impacts on light and glare will be considered significant if the project adds lighting 

 which would add glare to residential areas or sensitive receptors. 

Discussion 

I.a), b), c) & d) PAR 1111 applies to new residential heating furnaces. Compliance with PAR 

1111 for a new unit means that the equipment, at the time of manufacture, will be equipped with 

compliant low NOx burner technology that has been certified by the manufacturer to achieve the 

NOx emission standards. Implementation of PAR 1111 would not require the construction of 

new buildings or other structures that would obstruct scenic resources or degrade the existing 

visual character of a site, including but not limited to, trees, rock outcroppings, or historic 

buildings. Further, PAR 1111 would not involve the demolition of any existing buildings or 

facilities, require any subsurface activities, require the acquisition of any new land or the 

surrendering of existing land, or the modification of any existing land use designations or zoning 

ordinances. Thus, the proposed project is not expected to degrade the visual character of any site 

or its surroundings, affect any scenic vista, or damage scenic resources. Since the proposed 

project affects new residential heating units and does not require the addition of lighting, it is not

expected to create any new source of substantial light or glare. 

Based upon these considerations, significant adverse aesthetics impacts are not anticipated and 

will not be further analyzed in this Final EA. Since no significant aesthetics impacts were 

identified, no mitigation measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

II. AGRICULTURE RESOURCES. Would the 

project:

 

a) Convert Prime Farmland, Unique Farmland, or 

Farmland of Statewide Importance (Farmland), as 

shown on the maps prepared pursuant to the 

Farmland mapping and Monitoring Program of 

the California Resources Agency, to nonagricultural use?


Final Environmental Assessment: Chapter 2 

PAR 1111 2-6 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

b) Conflict with existing zoning for agricultural use, 

or a Williamson Act contract? 



c) Involve other changes in the existing environment 

which, due to their location or nature, could result 

in conversion of Farmland, to non-agricultural 

use? 



Significance Criteria 

Project-related impacts on agricultural resources will be considered significant if any of the 

following conditions are met: 

- The proposed project conflicts with existing zoning or agricultural use or Williamson Act 

contracts. 

- The proposed project will convert prime farmland, unique farmland or farmland of statewide 

importance as shown on the maps prepared pursuant to the farmland mapping and monitoring 

program of the California Resources Agency, to non-agricultural use. 

- The proposed project would involve changes in the existing environment, which due to their 

location or nature, could result in conversion of farmland to non-agricultural uses. 

II.a), b), & c) Compliance with PAR 1111 means installing new compliant units with low NOx 

burner technology. The residences that will be affected by the implementation of PAR 1111 are 

located within urbanized areas that are typically designated as residential or commercial (for 

units located within small commercial structures). Therefore, installing a new compliant unit at 

the end of a current unit’s operable lifetime to comply with PAR 1111 would not result in any 

new construction of buildings or other structures that would convert any classification of 

farmland to non-agricultural use or conflict with zoning for agricultural use or a Williamson Act 

contract. 

Based upon these considerations, significant agricultural resource impacts are not anticipated and 

will not be further analyzed in this Final EA. Since no significant agriculture resources impacts 

were identified, no mitigation measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

III. AIR QUALITY. Would the project: 

a) Conflict with or obstruct implementation of the 

applicable air quality plan? 



b) Violate any air quality standard or contribute to 

an existing or projected air quality violation? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-7 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

c) Result in a cumulatively considerable net increase 

of any criteria pollutant for which the project 

region is non-attainment under an applicable 

federal or state ambient air quality standard 

(including releasing emissions that exceed 

quantitative thresholds for ozone precursors)? 



d) Expose sensitive receptors to substantial pollutant 

concentrations? 



e) Create objectionable odors affecting a substantial 

number of people? 



f) Diminish an existing air quality rule or future 

compliance requirement resulting in a significant 

increase in air pollutant(s)? 



g) Generate greenhouse gas emissions, either 

directly or indirectly, that may have a significant

impact on the environment, based on applicable 

threshold of significance? 



h) Conflict with any applicable plan, policy or 

regulation of an agency adopted for the purpose 

of reducing the emissions of greenhouse gases? 



III.a) Attainment of the state and federal ambient air quality standards protects sensitive 

receptors and the public in general from the adverse effects of criteria pollutants which are 

known to have adverse human health effects. Based on the discussion under items III. b), c) and 

f), the lower future NOx emission limits proposed in PAR 1111 contribute to carrying out the 

goals of the 2007 AQMP, specifically, the goals of control measure CMB-03, by replacing the 

affected units at the end of their operable life to meet current BACT standards. Further, reducing 

NOx emissions from all affected PAR 1111 units helps contribute to attaining and maintaining 

the state and federal ambient air quality standards. Thus, because PAR 1111 implements a 

portion of this control measure in the 2007 AQMP which results in achieving NOx reductions, 

the proposed project does not obstruct implementation of the applicable AQMP. 

III.b), c) & f) For a discussion of these items, refer to the following analysis. 

Air Quality Significance Criteria 

To determine whether or not air quality impacts from adopting and implementing the proposed 

amendments are significant, impacts will be evaluated and compared to the criteria in Table 2-1. 

If impacts equal or exceed any of the criteria in Table 2-1, air quality impacts will be considered 

significant. All feasible mitigation measures will be identified and implemented to reduce 

significant impacts to the maximum extent feasible. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-8 November 2009 

Table 2-1 

Air Quality Significance Thresholds4

Mass Daily Thresholds 

Pollutant Construction Operation 

NOx 100 lbs/day 55 lbs/day 

VOC 75 lbs/day 55 lbs/day 

PM10 150 lbs/day 150 lbs/day 

PM2.5 55 lbs/day 55 lbs/day 

Sox 150 lbs/day 150 lbs/day 

CO 550 lbs/day 550 lbs/day 

Lead 3 lbs/day 3 lbs/day 

Toxic Air Contaminants and Odor Thresholds 

Toxic Air Contaminants (TACs) 

Accidental Release of Acutely 

Hazardous Materials (AHMs) 

MICR > 10 in 1 million ; HI > 1.0 (project increment) 

CAA §112(r) threshold quantities 

Odor Project creates an odor nuisance pursuant to SCAQMD Rule 402 

Ambient Air Quality for Criteria Pollutants (a)

NO2 

1-hour average 

annual average 

SCAQMD is in attainment; project is significant if it causes or 

contributes to an exceedance of the following attainment standards: 

0.25 ppm (state) 

0.053 ppm (federal) 

PM10 

24-hour average 

annual geometric average 

annual arithmetic mean 

10.4 μg/m3 (construction) (b) & 2.5 μg/m3 (operation) 

1.0 μg/m3 

20 μg/m3

PM2.5 

24-hour average 10.4 μg/m3

 (construction) (b) & 2.5 μg/m3 (operation)

Sulfate 

24-hour average 1 ug/m3

CO 

1-hour average 

8-hour average 

SCAQMD is in attainment; project is significant if it causes or 

contributes to an exceedance of the following attainment standards: 

20 ppm (state) 

9.0 ppm (state/federal) 

(a)

Ambient air quality thresholds for criteria pollutants based on SCAQMD Rule 1303, Table A-2 unless otherwise stated. 

(b)

Ambient air quality threshold based on SCAQMD Rule 403. 

KEY: MICR = maximum individual cancer risk HI = Hazard Index 

 ug/m3 = microgram per cubic meter ppm = parts per million 

 AHM = acutely hazardous material; TAC = toxic air contaminant 

 

4

 CEQA Air Quality Handbook, SCAQMD, November 1993. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-9 November 2009 

Construction Air Quality Impacts 

Construction-related emissions can be distinguished as either onsite or offsite. Onsite emissions 

generated during construction principally consist of exhaust emissions (NOx, SOx, CO, VOC, 

and PM10) from the operation of heavy-duty construction equipment, fugitive dust (as PM10) 

from disturbed soil, and VOC emissions from asphaltic paving and painting. Offsite emissions 

during the construction phase normally consist of exhaust emissions and entrained paved road 

dust (as PM10) from worker commute trips, material delivery trips, and haul truck material 

removal trips to and from the construction site. 

Compliance with PAR 1111 means that the equipment, at the time of manufacture, will be 

equipped with compliant low NOx burner technology that has been certified by the manufacturer 

to achieve the NOx emission standards. Based on the above description of construction 

activities, the proposed project is not expected to generate construction-related emissions, so no 

adverse impacts are expected. There are no requirements in PAR 1111 to perform any 

construction or associated activities (e.g. demolition or building of structures, facilities, 

infrastructure, or installation of control equipment) because the proposed amendments do not 

require any physical modifications at affected manufacturing facilities. Further, there are 

reportedly no furnace manufacturers located in the District. 

Operational Air Quality Impacts 

The overall objective of the proposed project is to reduce NOx emissions from natural gas-fired, 

fan-type central furnaces. Compliance with PAR 1111 means that the equipment, at the time of 

manufacture, will be equipped with compliant low NOx burner technology that has been certified 

by the manufacturer to achieve the NOx emission standards. PAR 1111 is expected to 

permanently reduce NOx emissions from the affected source category by approximatelyless than

0.1 ton per day by 2014 and 2.53.1 tons per day by 2023, so no adverse impacts are expected 

from operational emissions. No other operational emissions changes are expected from 

implementing PAR 1111. 

Changes to NOx Emissions 

PAR 1111 would require affected equipment to meet NOx emission limits beginning in 2012. 

Table 1-1 in Chapter 1 contains a summary of the affected equipment categories and gaseous 

fuel limits proposed in PAR 1111. The proposed compliance dates for each affected equipment 

category are presented in Table 1-2 in Chapter 1. 

Based on gas usage data from the CEC and the SCGC, annual average NOx emissions from 

residential heating using natural gas were 9.7 tons/day in 2002, and are estimated to be 10.5 and 

11.1 tons/day in 2012 and 2023 respectively. By 2014, PAR 1111 is expected to reduce the NOx 

inventory from affected equipment subject to the rule by less than 0.1 tons per day by 2014 and 

2.53.1 tons per day by 2023. Emission reductions were calculated based on current emission 

limits and the proposed emission limits. 

Based on the above information, there are no significant adverse construction or operational air 

quality impacts generated by the proposed project. 

Summary of Global Warming Impacts 

Significant changes in global climate patterns have recently been associated with global 

warming, an average increase in the temperature of the atmosphere near the Earth’s surface, 

attributed to accumulation of GHG emissions in the atmosphere. GHGs trap heat in the 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-10 November 2009 

atmosphere, which in turn heats the surface of the Earth. Some GHGs occur naturally and are 

emitted to the atmosphere through natural processes, while others are created and emitted solely 

through human activities. The emission of GHGs through the combustion of fossil fuels (i.e., 

fuels containing carbon) in conjunction with other human activities, appears to be closely 

associated with global warming. State law defines GHG to include the following: carbon 

dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), 

perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) (Health and Safety Code §38505(g)). 

The most common GHG that results from human activity is CO2, followed by CH4 and N2O. 

The analysis of GHGs is a much different analysis than the analysis of criteria pollutants for the 

following reasons. For criteria pollutants, the significance thresholds are based on daily 

emissions because attainment or non-attainment is based on daily exceedances of applicable 

ambient air quality standards. Further, several ambient air quality standards are based on 

relatively short-term exposure effects on human health, e.g., one-hour and eight-hour standards. 

Since the half-life of CO2 is approximately 100 years, for example, the effects of GHGs occur 

over a longer term which means they affect the global climate over a relatively long time frame. 

As a result, the SCAQMD’s current position is to evaluate the effects of GHGs over a longer 

timeframe than a single day. Although GHG emissions are typically considered to be cumulative 

impacts because they contribute to global climate effects, this Final EA analyzes the GHG 

emissions as project specific impacts because of the close relationship between CO and CO2 

emissions from the compliance options. 

Based on the type and size of equipment affected by PAR 1111, CO2 emissions from the 

operation of the compliant units are likely to decrease from current levels due to improved 

burner efficiency. Therefore, no fuel penalty is associated with PAR 1111 and CO2 emissions 

were not required to be evaluated for operational activities. Additionally, compliance with PAR 

1111 means that the equipment, at the time of manufacture, will be equipped with compliant low 

NOx burner technology that has been certified by the manufacturer to achieve the NOx emission 

standards. Therefore, the proposed project is not expected to generate construction-related CO2 

emissions. 

The SCAQMD has convened a “Greenhouse Gas CEQA Significance Threshold Working 

Group” to consider a variety of benchmarks and potential significance thresholds to evaluate 

GHG impacts. On December 5, 2008, the SCAQMD adopted an interim CEQA GHG 

Significance Threshold for projects where SCAQMD is the lead agency (SCAQMD, 2008). This 

interim threshold is set at 10,000 MT CO2eq per year. The SCAQMD prepared a “Draft 

Guidance Document – Interim CEQA GHG Significance Thresholds” that outlined the approved 

tiered approach to determine GHG significance of projects (SCAQMD, 2008, pg. 3-10). The 

first two tiers involve (1) exempting the project because of potential reductions of GHG 

emissions allowed under CEQA and (2) demonstrating that the project’s GHG emissions are 

consistent with a local general plan. Tier 3 proposes a limit of 10,000 MT CO2eq per year as the 

incremental increase signifying significance (SCAQMD, 2008, pg. 3-11). Tier 4 (performance 

standards) is currently not approved. Tier 5 imposes mitigation measures that would reduce the 

GHG impacts to below the Tier 3 brightline threshold. Projects with incremental increases 

below this threshold will not be cumulatively considerable. 

Since the proposed project is not expected to generate construction-related CO2 emissions, and 

the operational phase of the proposed project is not expected to generate any additional GHG 

emissions, cumulative GHG adverse impacts from PAR 1111 are not considered significant. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-11 November 2009 

PAR 1111 is part of a comprehensive ongoing regulatory program that includes implementing 

related SCAQMD 2007 AQMP control measures as amended or new rules to attain and maintain 

with a margin of safety all state and national ambient air quality standards for all areas within its 

jurisdiction. The 2007 AQMP estimates a CO2 reduction of 427,849 metric tons per year by 

2014, and a CO2 reduction of 1,523,445 metric tons per year by 2020. Therefore, the effects of 

PAR 1111 in connection with other 2007 AQMP control measures isare not considered to be 

cumulatively considerable and, therefore, its effects is are not considered to be a significant 

cumulative GHG impact. 

Conclusion

Based on the preceding discussion, PAR 1111 is expected to reduce the NOx inventory from 

affected equipment subject to the rule by less than 0.1 tons per day by 2014 and 2.53.1 tons per 

day by 2023, which is an air quality benefit. Thus, PAR 1111 is not expected to result in 

significant adverse air quality impacts. Further, implementing PAR 1111 would not diminish an 

existing air quality rule or future compliance requirement, nor conflict with or obstruct 

implementation of the applicable air quality plan. The proposed project has no provision that 

would cause a violation of any air quality standard or directly contribute to an existing or 

projected air quality violation. Since air quality impacts from implementing PAR 1111 are seen 

as benefits and do not exceed any of the air quality significance thresholds in Table 2-1, air 

quality impacts are not considered to be cumulatively considerable as defined in CEQA 

Guidelines §15065(c). Therefore, the proposed project is not expected to result in a cumulatively 

considerable net increase of any criteria pollutant or GHGs. 

III.d) Affected equipment is not expected to increase exposure by sensitive receptors to 

substantial pollutant concentrations from the implementation of PAR 1111 for the following 

reasons: 1) affected equipment is primarily located in existing residential and/or commercial 

areas; 2) there are no emission increases associated with the proposed project; and, 3) installation 

of any new equipment subject to PAR 1111 is expected to reduce NOx emissions from affected 

equipment. Therefore, significant adverse air quality impacts to sensitive receptors are not 

expected from implementing PAR 1111. 

III.e) Historically, the SCAQMD has enforced odor nuisance complaints through SCAQMD 

Rule 402 - Nuisance. Affected equipment is not expected to create objectionable odors affecting 

a substantial number of people for the following reasons: 1) there are no emission increases 

associated with the proposed project; 2) no heavy-duty construction equipment with associated 

diesel exhaust odors are necessary to install compliant equipment; 3) typically no odors are 

associated with combustion equipment (heating furnaces) operating in accordance with Rule 

1111; and, 4) installation of any new equipment subject to PAR 1111 is expected to reduce NOx 

emissions from affected equipment. Therefore, no significant odor impacts are expected to result 

from implementing the PAR 1111. 

III. g) & h) Based on the type and size of equipment affected by PAR 1111, CO2 emissions 

from the operation of the compliant units are likely to decrease from current levels due to 

improved burner efficiency. Therefore, no fuel penalty is associated with PAR 1111 and CO2 

emissions were not required to be evaluated for operational activities. Additionally, compliance 

with PAR 1111 means that the equipment, at the time of manufacture, will be equipped with 

compliant low NOx burner technology that has been certified by the manufacturer to achieve the 

NOx emission standards. Therefore, the proposed project is not expected to generate 

construction-related CO2 emissions. The proposed amended rule will not change the current 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-12 November 2009 

natural gas-fired furnace distribution system and will not change the replacement schedule of 

existing furnaces. Since the proposed project is not expected to generate construction-related 

CO2 emissions, and the operational phase of the proposed project is not expected to generate any 

additional GHG emissions, cumulative GHG adverse impacts from PAR 1111 are not considered 

significant. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

IV. BIOLOGICAL RESOURCES. Would the 

project:

 

a) Have a substantial adverse effect, either directly 

or through habitat modifications, on any species 

identified as a candidate, sensitive, or special 

status species in local or regional plans, policies, 

or regulations, or by the California Department 

of Fish and Game or U.S. Fish and Wildlife 

Service?



b) Have a substantial adverse effect on any riparian 

habitat or other sensitive natural community 

identified in local or regional plans, policies, or

regulations, or by the California Department of 

Fish and Game or U.S. Fish and Wildlife 

Service? 



c) Have a substantial adverse effect on federally 

protected wetlands as defined by §404 of the 

Clean Water Act (including, but not limited to, 

marsh, vernal pool, coastal, etc.) through direct 

removal, filling, hydrological interruption, or 

other means? 



d) Interfere substantially with the movement of any

native resident or migratory fish or wildlife 

species or with established native resident or 

migratory wildlife corridors, or impede the use of 

native wildlife nursery sites? 



e) Conflicting with any local policies or ordinances 

protecting biological resources, such as a tree 

preservation policy or ordinance? 



 

f) Conflict with the provisions of an adopted Habitat 

Conservation plan, Natural Community 

Conservation Plan, or other approved local, 

regional, or state habitat conservation plan? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-13 November 2009 

Significance Criteria 

Impacts on biological resources will be considered significant if any of the following criteria 

apply: 

- The project results in a loss of plant communities or animal habitat considered to be rare, 

threatened or endangered by federal, state or local agencies. 

- The project interferes substantially with the movement of any resident or migratory wildlife 

species. 

- The project adversely affects aquatic communities through construction or operation of the 

project. 

Discussion 

IV.a), b), c), & d) Compliance with PAR 1111 means installing new compliant units or 

replacing existing units at the end of their useful lifetime with units utilizing low NOx burner 

technology. Therefore, installing new equipment to comply with PAR 1111 would not result in 

any new construction of buildings or other structures. In general, the areas where affected 

equipment are located currently do not typically support riparian habitat, federally protected 

wetlands, or migratory corridors. Additionally, special status plants, animals, or natural 

communities are not expected to be found in close proximity to locations were new compliant 

equipment would be installed. 

IV.e) & f) PAR 1111 is not envisioned to conflict with local policies or ordinances protecting 

biological resources nor local, regional, or state conservation plans because it will only affect 

combustion equipment primarily located in residential settings or small commercial structures. 

Additionally, PAR 1111 will not conflict with any adopted Habitat Conservation Plan, Natural 

Community Conservation Plan, or any other relevant habitat conservation plan for the same 

reason. 

The SCAQMD, as the Lead Agency for the proposed project, has found that, when considering 

the record as a whole,Further, there is no evidence that the proposed project will have potential 

for any new adverse effects on wildlife resources or the habitat upon which wildlife depends. 

Accordingly, based upon the preceding information, the SCAQMD has, on the basis of 

substantial evidence, rebutted the presumption of adverse effect contained in §753.5 (d), Title 14 

of the California Code of Regulations.

Based upon these considerations, significant adverse biological resources impacts are not 

anticipated from the proposed project. and will not be further analyzed in this Final EA. Since 

the proposed project is not expected to have no significant adverse biological resources impacts, 

were identified, no mitigation measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

V. CULTURAL RESOURCES. Would the 

project:

 

a) Cause a substantial adverse change in the 

significance of a historical resource as defined 

in §15064.5? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-14 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

 

b) Cause a substantial adverse change in the 

significance of an archaeological resource as 

defined in §15064.5? 



c) Directly or indirectly destroy a unique 

paleontological resource or site or unique 

geologic feature? 



d) Disturb any human remains, including those 

interred outside a formal cemetery? 



Significance Criteria 

Impacts to cultural resources will be considered significant if: 

- The project results in the disturbance of a significant prehistoric or historic archaeological 

site or a property of historic or cultural significance to a community or ethnic or social group. 

- Unique paleontological resources are present that could be disturbed by construction of the 

proposed project. 

- The project would disturb human remains. 

Discussion 

V.a), b), c), & d) Since no construction-related activities associated with installing compliant 

equipment are expected, no impacts to historical resources are expected to occur as a result of 

this project. PAR 1111 is not expected to require physical changes to the environment, which 

may disturb paleontological or archaeological resources. Furthermore, it is envisioned that the 

areas where the affected equipment exists are already either devoid of significant cultural 

resources or whose cultural resources have been previously disturbed. 

Based upon these considerations, significant adverse cultural resources impacts are not expected 

from the implementing PAR 1111. and will not be further assessed in this Final EA. Since no 

significant cultural resources impacts were identified, no mitigation measures are necessary or 

required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

VI. ENERGY. Would the project: 

a) Conflict with adopted energy conservation 

plans? 



b) Result in the need for new or substantially 

altered power or natural gas utility systems? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-15 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

c) Create any significant effects on local or 

regional energy supplies and on requirements for 

additional energy? 



d) Create any significant effects on peak and base

period demands for electricity and other forms of 

energy? 



e) Comply with existing energy standards? 

Significance Criteria 

Impacts to energy and mineral resources will be considered significant if any of the following 

criteria are met: 

- The project conflicts with adopted energy conservation plans or standards. 

- The project results in substantial depletion of existing energy resource supplies. 

- An increase in demand for utilities impacts the current capacities of the electric and natural 

gas utilities. 

- The project uses non-renewable resources in a wasteful and/or inefficient manner. 

Discussion 

VI.a) & e) Compliance with PAR 1111 means installing new compliant units or replacing 

existing units at the end of their useful lifetime with units utilizing low NOx burner technology. 

Installation of new units with low NOx burners or replacing existing equipment with new 

compliant equipment is expected to result in a slight reduction in demand for natural gas, as new 

burners are expected to be more efficient than existing affected equipment. As a result, PAR 

1111 would not conflict with energy conservation plans, use non-renewable resources in a 

wasteful manner, or result in the need for new or substantially altered power or natural gas 

systems. Since PAR 1111 would affect equipment that is primarily located in existing residential 

and/or commercial areas, it will not conflict with adopted energy conservation plans because 

existing structures where new compliant units would be installed would be expected to continue 

implementing any existing energy conservation plans, because it is expected that compliant 

equipment will be more efficient than existing equipment. Additionally, new equipment is 

expected to comply with existing energy conservation plans and standards to minimize operating 

costs, while still complying with the requirements of PAR 1111. Accordingly these impact 

issues will not be further analyzed in the Final EA. 

VI.b), c), & d) PAR 1111 would not create any significant effects on peak and base period 

demands for electricity and other forms of energy since no construction of buildings or other 

structures are anticipated as a result of the installation of new compliant equipment that utilizes 

low NOx burner technology. 

The majority of the universe of sources that would be regulated by PAR 1111 is fired with 

natural gas. As discussed in the air quality section regarding GHG emissions, due to low NOx 

burner use in new compliant units, implementation of PAR 1111 is expected to result in a slight 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-16 November 2009 

decrease in the demand for natural gas. Based upon these considerations, the proposed project is 

not expected to use energy in a wasteful manner. There will be no substantial depletion of 

energy resources nor will significant amounts of fuel be needed when compared to existing 

supplies. Additionally, the proposed amended rule will not change the current natural gas-fired 

furnace distribution system and will not change the replacement schedule of existing furnaces. 

Furnace manufacturers have expressed concern that a mitigation fee could cause developers and 

homeowners to switch to alternatives such as heat pumps in order to avoid increased cost 

associated with the alternate compliance option (mitigation fees). This option is not likely to 

occur in Southern California on a widespread basis due to the higher cost of electricity compared 

to the lower cost of natural gas. However, in order to evaluate potential increased energy 

demand associated with the use of heat pumps, as a worst-case scenario, SCAQMD staff 

estimated that 50 percent of new units over the three year period from 2014 to 2016 would be 

included in the alternate compliance plan on an annual basis (90,000 units). Of these 90,000 new 

units installed in the District annually, SCAQMD staff estimated that approximately ten percent 

would be replaced by heat pumps (9,000 units). This estimate was based on the Technical 

Support Document- Energy Efficiency Program for Consumer Products, Energy Conservation 

Standards for Residential Furnaces and Boilers, prepared by the U.S. Department of Energy 

(2007). Based on the California Statewide Residential Appliance Saturation Study (2004) 

prepared for the California Energy Commission (CEC), the annual average amount of energy 

used by a single family residential heat pump in the State of California is 1,077 kilowatt hours 

(kWh). Therefore, based on the estimated amount of heat pumps used, an additional 9,693,000 

kWh per year would be required. Based on a telephone conversation with a Southern California 

Edison (SCE) representative, SCE’s capacity is approximately 20,000 megawatts, which is 

considerably greater than the expected energy demand for electric heat pumps. Therefore, the 

increased energy demand caused by the potential replacement of natural gas-fired furnaces with 

electric heat pumps is estimated to be very small and is not considered significant. It should also 

be noted that the heat pumps would primarily be operated during the winter months when unused 

energy capacity is available. Additionally, the transfer from the usage of furnaces to heat pumps 

would also eliminate the natural gas demand required by the previously used furnaces. 

Therefore, a decrease in the residential usage of natural gas would also occur in this scenario. 

To compare the energy requirements of heat pumps to the current energy usage of natural gasfired furnaces, SCAQMD staff converted the California statewide annual average electricity use 

by a heat pump (1,077 kWh) to the California average therms used by a gas furnace. Based on 

the California Statewide Residential Appliance Saturation Study (2004) prepared for the 

California Energy Commission (CEC), the annual average amount of therms used by a single 

family residential furnace in the State of California is 242. A typical heat rate (BTU/kWh) was 

used in the following conversion calculation: 

• 8,500 BTUs per kWh 

• 8,500 BTUs x 1,077 kWh = 91.55 therms 

 100,000 BTUs per therm 

Based on the above calculation, the therm equivalency that an average heat pump would require 

to operate is approximately 92 therms5

. This amount of energy is less than the current annual 

 

5

This calculation does not include energy losses (e.g.- transmission line losses, etc.)
Final Environmental Assessment: Chapter 2 

PAR 1111 2-17 November 2009 

average amount of energy used by a single family residential furnace (242 therms). Therefore, in 

this scenario, the proposed amended rule is not expected to create any significant effects on local 

or regional energy supplies and on requirements for additional energy. Additionally, based on 

the lower therm equivalent of heat pumps, this replacement scenario would not result in an 

increase in GHG emissions due to increased electricity requirements of heat pumps. 

In light of the preceding discussion, PAR 1111 would not create any significant effects on peak 

and base period demands for electricity and other forms of energy and it is expected to comply 

with existing energy standards. Therefore, PAR 1111 is not expected to generate significant 

adverse energy resources impacts and will not be discussed further in this Final EA. Since no 

significant energy impacts are expectedwere identified, no mitigation measures are necessary or 

required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

VII. GEOLOGY AND SOILS. Would the project: 

a) Expose people or structures to potential substantial 

adverse effects, including the risk of loss, injury, 

or death involving: 



• Rupture of a known earthquake fault, as 

delineated on the most recent Alquist-Priolo 

Earthquake Fault Zoning Map issued by the 

State Geologist for the area or based on other 

substantial evidence of a known fault? 



• Strong seismic ground shaking? 

• Seismic–related ground failure, including 

liquefaction? 



• Landslides? 

b) Result in substantial soil erosion or the loss of 

topsoil? 



c) Be located on a geologic unit or soil that is 

unstable or that would become unstable as a result 

of the project, and potentially result in on- or 

offsite landslide, lateral spreading, subsidence, 

liquefaction or collapse? 



d) Be located on expansive soil, as defined in Table 

18-1-B of the Uniform Building Code (1994), 

creating substantial risks to life or property? 



e) Have soils incapable of adequately supporting the 

use of septic tanks or alternative waste water 

disposal systems where sewers are not available 

for the disposal of waste water? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-18 November 2009 

Significance Criteria 

Impacts on the geological environment will be considered significant if any of the following 

criteria apply: 

- Topographic alterations would result in significant changes, disruptions, displacement, 

excavation, compaction or over covering of large amounts of soil. 

- Unique geological resources (paleontological resources or unique outcrops) are present that 

could be disturbed by the construction of the proposed project. 

- Exposure of people or structures to major geologic hazards such as earthquake surface 

rupture, ground shaking, liquefaction or landslides. 

- Secondary seismic effects could occur which could damage facility structures, e.g., 

liquefaction. 

- Other geological hazards exist which could adversely affect the facility, e.g., landslides, 

mudslides. 

Discussion 

VII.a) Southern California is an area of known seismic activity. Structures must be designed to 

comply with the Uniform Building Code Zone 4 requirements if they are located in a seismically 

active area. The local city or county is responsible for assuring that a proposed project complies 

with the Uniform Building Code as part of the issuance of the building permits and can conduct 

inspections to ensure compliance. The Uniform Building Code is considered to be a standard 

safeguard against major structural failures and loss of life. The goal of the code is to provide 

structures that will: 1) resist minor earthquakes without damage; 2) resist moderate earthquakes 

without structural damage but with some non-structural damage; and 3) resist major earthquakes 

without collapse but with some structural and non-structural damage. 

The Uniform Building Code bases seismic design on minimum lateral seismic forces (“ground 

shaking”). The Uniform Building Code requirements operate on the principle that providing 

appropriate foundations, among other aspects, helps to protect buildings from failure during 

earthquakes. The basic formulas used for the Uniform Building Code seismic design require 

determination of the seismic zone and site coefficient, which represent the foundation conditions 

at the site. Accordingly, buildings and equipment at existing affected facilities are likely to 

conform with the Uniform Building Code and all other applicable state codes in effect at the time 

they were constructed. 

Compliance with PAR 1111 means installing new compliant units or replacing existing units at 

the end of their useful lifetime with units utilizing low NOx burner technology. Since 

implementing PAR 1111 is expected to involve the installation of new compliant equipment 

utilizing low NOx burners, no new buildings or structures are expected to be constructed in 

response to the proposed project. As a result, substantial exposure of people or structure to the 

risk of loss, injury, or death involving seismic-related activities is not anticipated and will not be

further analyzed in this Final EA. 

VII.b) Compliance with PAR 1111 means installing new compliant units or replacing existing 

units at the end of their useful lifetime with units utilizing low NOx burner technology. Since 

implementing PAR 1111 is expected to involve the installation of new compliant equipment 

utilizing low NOx burners, no soil disruption from excavation, grading, or filling activities; 

changes in topography or surface relief features; erosion of beach sand; or changes in existing 

siltation rates are anticipated in response to the proposed project. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-19 November 2009 

VII.c) Since the affected equipment is primarily located in existing residential and/or 

commercial areas, it is expected that the soil types present at the locations of affected equipment 

will not be further susceptible to expansion or liquefaction. Subsidence is not anticipated to be a 

problem since no excavation, grading, or filling activities will occur at affected facilities. 

Further, the proposed project does not involve drilling or removal of underground products (e.g., 

water, crude oil, et cetera) that could produce new, or make worse existing subsidence effects. 

Additionally, the affected areas are not envisioned to be prone to new risks from landslides or 

have unique geologic features since the affected equipment is located in primarily existing 

residential and/or commercial areas where such features have already been altered or removed. 

Finally, since affected equipment is located primarily at existing facilities, the proposed project 

is not expected to alter or make worse any existing potential for subsidence, liquefaction, etc. 

VII.d) & e) Since compliance with PAR 1111 means installing new compliant units or replacing 

existing units at the end of their useful lifetime with units utilizing low NOx burner technology, 

it is expected that people or property will not be exposed to new impacts relative to expansive 

soils or soils incapable of supporting water disposal, nor will any existing impacts be made 

worse. Further, the proposed project does not require installation of septic tanks or other 

alternative waste water systems. The main effect of the proposed project will be the installation 

of new compliant equipment at the end of the current equipment’s useful lifetime in primarily 

existing residential and/or commercial areas. 

Based upon these considerations, significant geology and soils impacts are not expected from the 

implementation of PAR 1111 and will not be further analyzed in this Final EA. Since no 

significant geology and soils impacts were identified, no mitigation measures are necessary or 

required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

VIII. HAZARDS AND HAZARDOUS 

MATERIALS. Would the project:

 

a) Create a significant hazard to the public or the 

environment through the routine transport, use, 

disposal of hazardous materials? 



b) Create a significant hazard to the public or the 

environment through reasonably foreseeable 

upset and accident conditions involving the 

release of hazardous materials into the 

environment? 



c) Emit hazardous emissions, or handle hazardous 

or acutely hazardous materials, substances, or 

waste within one-quarter mile of an existing or 

proposed school? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-20 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

d) Be located on a site which is included on a list 

of hazardous materials sites compiled pursuant 

to Government Code §65962.5 and, as a result, 

would create a significant hazard to the public 

or the environment? 



e) For a project located within an airport land use 

plan or, where such a plan has not been adopted, 

within two miles of a public airport or public 

use airport, would the project result in a safety 

hazard for people residing or working in the 

project area? 



f) For a project within the vicinity of a private 

airstrip, would the project result in a safety 

hazard for people residing or working in the 

project area? 



g) Impair implementation of or physically interfere 

with an adopted emergency response plan or 

emergency evacuation plan? 



h) Expose people or structures to a significant risk 

of loss, injury or death involving wildland fires, 

including where wildlands are adjacent to 

urbanized areas or where residences are 

intermixed with wildlands? 



i) Significantly increased fire hazard in areas with 

flammable materials? 



Significance Criteria 

Impacts associated with hazards will be considered significant if any of the following occur: 

- Non-compliance with any applicable design code or regulation. 

- Non-conformance to National Fire Protection Association standards. 

- Non-conformance to regulations or generally accepted industry practices related to operating 

policy and procedures concerning the design, construction, security, leak detection, spill 

containment or fire protection. 

- Exposure to hazardous chemicals in concentrations equal to or greater than the Emergency 

Response Planning Guideline (ERPG) 2 levels. 

Discussion 

VIII.a) There are no provisions in PAR 1111 that would increase the amount of hazardous 

materials used or generated by owners/operators of new compliant equipment. Further, because 

implementation of PAR 1111 would involve the installation of new compliant equipment at the 

end of the equipment’s useful life at primarily existing residences or small commercial 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-21 November 2009 

structures, no raw material deliveries or waste disposal truck trips that handle hazardous 

materials will be associated with the proposed project. 

As indicated in the discussion under energy, PAR 1111 applies to combustion equipment 

operations that are fired with natural gas, which is a flammable substance. Because the low NOx 

burner technology is more efficient than existing burner technologies, implementation of PAR 

1111 is expected to slightly reduce the demand for fuel compared to what is currently used in 

currently used equipment. As a result, implementation of PAR 1111 is not expected to 

noticeably change or may slightly reduce any existing flammability hazard that may be 

associated with operating these combustion devices. In summary, implementation of PAR 1111 

is not expected to increase any existing flammability hazard associated with firing low NOx 

burners in new compliant equipment. 

VIII.b) & i) Since PAR 1111 would primarily affect combustion equipment that is primarily 

located at existing residences and small commercial structures, existing emergency planning is 

anticipated to adequately minimize the risk associated with installing new compliant equipment. 

As noted in item VIII.a), PAR 1111 is not expected to increase the amount of materials used or 

generated at affected equipment locations. PAR 1111 is not expected to significantly increase 

the demand of fuels (natural gas) or other flammable substances. 

In addition, local fire departments ensure that adequate permit conditions are in place to protect 

against potential risk of upset. The Uniform Fire Code and Uniform Building Code set standards 

intended to minimize risks from flammable or otherwise hazardous materials. Local 

jurisdictions are required to adopt the uniform codes or comparable regulations. Local fire 

agencies require permits for the use or storage of hazardous materials and permit modifications 

for proposed increases in their use. Permit conditions depend on the type and quantity of the 

hazardous materials at the facility. Permit conditions may include, but are not limited to, 

specifications for sprinkler systems, electrical systems, ventilation, and containment. The fire 

departments make annual business inspections to ensure compliance with permit conditions and 

other appropriate regulations. However, PAR 1111 primarily affects heating equipment utilized 

in residential structures. Therefore, the above hazardous materials storage and usage is not likely 

to be applicable at the locations where PAR 1111-affected equipment is located. Additionally, 

compliance with federal, state and local regulations and proper operation and maintenance of 

equipment should ensure the potential for explosions or accidental releases of hazardous 

materials is not significant. 

VIII.c), e), & f) In general, the purpose of PAR 1111 is to achieve NOx emission reductions 

from natural gas-fired, fan-type central furnaces, which will ultimately improve air quality and 

reduce adverse human health impact related to poor air quality. Since operation of the affected 

equipment is expected to occur primarily in existing residential and/or commercial areas, 

implementation of PAR 1111 is not expected to increase existing, or create any new hazardous 

emissions which would adversely affect existing/proposed schools or public/private airports 

located in close proximity to the affected facilities. Accordingly, these impact issues are not 

further evaluated in this Final EA. 

VIII.d) It is not anticipated that complying with PAR 1111 will alter in any way how operators 

of affected equipment manage their hazardous wastes, seeing that compliance with PAR 1111 

means installing new compliant units or replacing existing units at the end of their useful lifetime 

with units utilizing low NOx burner technology. It is not expected that any of the affected 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-22 November 2009 

equipment locations are designated pursuant to Government Code §65962.5 as a large quantity 

generators of hazardous waste, due to the fact that the units affected by the proposed amended 

rule are primarily located in residential settings.

VIII.g) Aside from the use of natural gas for fueling the equipment, it should again be noted that 

the proposed amended rule has no provisions that dictate the use of, or generate any new 

hazardous material. Under PAR 1111, new compliant combustion equipment with low NOx 

burners would replace old equipment at the end of its useful lifetime or would be used in new 

development. Either way, the installation of new compliant equipment will not pose a 

substantial safety hazard. Therefore, it is not anticipated that PAR 1111 would require changes 

to impair implementation of or physically interfere with an adopted emergency response plan or 

emergency evacuation plan. 

VIII.h) Since the equipment subject to the requirements in PAR 1111 is primarily located in 

existing residential and/or commercial areas where wildlands are not prevalent, risk of loss or 

injury associated with wildland fires is not expected. Accordingly, this impact issue is not 

further evaluated in this Final EA. 

Based upon these considerations, significant hazards and hazardous materials impacts are not 

expected from the implementation of PAR 1111 and will not be further analyzed in this Final

EA. Since no significant hazards and hazardous materials impacts were identified, no mitigation 

measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

IX. HYDROLOGY AND WATER QUALITY. 

Would the project:

 

a) Violate any water quality standards or waste 

discharge requirements? 



b) Substantially deplete groundwater supplies or 

interfere substantially with groundwater 

recharge such that there would be a net deficit 

in aquifer volume or a lowering of the local 

groundwater table level (e.g. the production rate 

of pre-existing nearby wells would drop to a 

level which would not support existing land 

uses or planned uses for which permits have 

been granted)? 



c) Substantially alter the existing drainage pattern 

of the site or area, including through alteration 

of the course of a stream or river, in a manner 

that would result in substantial erosion or 

siltation on- or offsite? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-23 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

d) Substantially alter the existing drainage pattern 

of the site or area, including through alteration 

of the course of a stream or river, or 

substantially increase the rate or amount of 

surface runoff in a manner that would result in 

flooding on- or offsite? 



e) Create or contribute runoff water which would 

exceed the capacity of existing or planned 

stormwater drainage systems or provide 

substantial additional sources of polluted 

runoff? 



f) Otherwise substantially degrade water quality? 

g) Place housing within a 100-year flood hazard 

area as mapped on a federal Flood Hazard 

Boundary or Flood Insurance Rate Map or other 

flood hazard delineation map? 



h) Place within a 100-year flood hazard area 

structures which would impede or redirect flood 

flaws? 



i) Expose people or structures to a significant risk 

of loss, injury or death involving flooding, 

including flooding as a result of the failure of a 

levee or dam? 



j) Inundation by seiche, tsunami, or mudflow? 

k) Exceed wastewater treatment requirements of 

the applicable Regional Water Quality Control 

Board? 



l) Require or result in the construction of new 

water or wastewater treatment facilities or 

expansion of existing facilities, the construction 

of which could cause significant environmental 

effects? 



m) Require or result in the construction of new 

storm water drainage facilities or expansion of 

existing facilities, the construction of which 

could cause significant environmental effects? 



n) Have sufficient water supplies available to 

serve the project from existing entitlements and 

resources, or are new or expanded entitlements 

needed? 


Final Environmental Assessment: Chapter 2 

PAR 1111 2-24 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

o) Require in a determination by the wastewater 

treatment provider which serves or may serve 

the project that it has adequate capacity to serve 

the project's projected demand in addition to the 

provider's existing commitments? 



Significance Criteria 

Potential impacts on water resources will be considered significant if any of the following 

criteria apply: 

Water Quality: 

- The project will cause degradation or depletion of ground water resources substantially 

affecting current or future uses. 

- The project will cause the degradation of surface water substantially affecting current or 

future uses. 

- The project will result in a violation of National Pollutant Discharge Elimination System 

(NPDES) permit requirements. 

- The capacities of existing or proposed wastewater treatment facilities and the sanitary sewer 

system are not sufficient to meet the needs of the project. 

- The project results in substantial increases in the area of impervious surfaces, such that 

interference with groundwater recharge efforts occurs. 

- The project results in alterations to the course or flow of floodwaters. 

Water Demand: 

- The existing water supply does not have the capacity to meet the increased demands of the 

project, or the project would use a substantial amount of potable water. 

- The project increases demand for water by more than five million gallons per day. 

Discussion 

The expected options for compliance with the proposed future NOx emission limits will involve 

the installation of new compliant equipment at the end of the current equipment’s useful life. No 

additional water demand or wastewater generation is expected to result from the operation of the 

units equipped with low NOx burners at the affected equipment locations because this type of 

control technology does not entail the use of water in the NOx control process. Further, PAR 

1111 has no provision that would require the construction of additional water resource facilities, 

increase the need for new or expanded water entitlements, or alter existing drainage patterns. 

The proposed project would not substantially deplete groundwater supplies or interfere 

substantially with groundwater recharge. PAR 1111 would not create or contribute runoff water 

that would exceed the capacity of existing or planned stormwater drainage systems or provide 

substantial additional sources of polluted runoff. Further, since compliance with PAR 1111 does 

not involve wastewater processes, there would be no change in the composition or volume of 

existing wastewater streams from the affected facilities. In addition, the proposed amended rule 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-25 November 2009 

is not expected to require additional wastewater disposal capacity, violate any water quality 

standard or wastewater discharge requirements, or otherwise substantially degrade water quality. 

IX.a), f), k), l), & o) Complying with the proposed project will not change existing operations at 

affected equipment locations, nor would it result in generation of increased volumes of 

wastewater because the low NOx burners do not require water as part of the NOx control 

process. As a result, there are no potential changes in wastewater volume or composition 

expected from units complying with the requirements in PAR 1111. Further, PAR 1111 is not 

expected to cause affected equipment locations to violate any water quality standard or 

wastewater discharge requirements since there would be no wastewater volumes generated as a 

result of implementing with PAR 1111. PAR 1111 is not expected to have significant adverse 

water demand or water quality impacts for the following reasons: 

• The proposed project does not increase demand for water by more than 5,000,000 

gallons per day. 

• The proposed project does not require construction of new water conveyance 

infrastructure. 

• The proposed project does not create a substantial increase in mass inflow of 

effluents to public wastewater treatment facilities. 

• The proposed project does not result in a substantial degradation of surface water 

or groundwater quality. 

• The proposed project does not result in substantial increases in the area of 

impervious surfaces, such that interference with groundwater recharge efforts 

occurs. 

• The proposed project does not result in alterations to the course or flow of 

floodwaters. 

IX.b) & n) Because the NOx control process of the burners in the equipment affected by PAR 

1111 does not rely on water, no increase to any affected facilities’ existing water demand is 

expected. Because low NOx burner technology does not utilize water, implementation of PAR 

1111 will not increase demand for, or otherwise affect groundwater supplies or interfere with 

groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of 

the local groundwater table level. In addition, implementation of PAR 1111 will not increase 

demand for water from existing entitlements and resources, and will not require new or expanded 

entitlements. Since equipment affected by PAR 1111 generally occur in existing structures, no 

paving is required that might interfere with groundwater recharge. Therefore, no water demand 

impacts are expected as the result of implementing PAR 1111. 

IX.c), d), & e) Implementation of PAR 1111 will occur at primarily existing structures, or areas 

that that are typically located in residential or commercial areas that are paved and may have 

drainage infrastructures in place. Since PAR 1111 does not involve major construction 

activities, no impacts to storm water runoff, drainage patterns, groundwater characteristics, or 

flow are expected. Therefore, these impact areas are not expected to be affected by PAR 1111. 

IX.g), h), i), & j) The proposed project will not require construction of new housing, contribute to 

the construction of new building structures, or require modifications or changes to existing 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-26 November 2009 

structures. Further, PAR 1111 is not expected to require additional workers at affected equipment 

locations. Therefore, PAR 1111 is not expected to generate construction of any new structures in 

100-year flood areas as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map 

or other flood delineation map. As a result, PAR 1111 is not expected to expose people or structures 

to significant new flooding risks, or make worse any existing flooding risks. Finally, PAR 1111 will 

not affect in any way any potential flood hazards inundation by seiche, tsunami, or mud flow that 

may already exist relative to existing facilities or create new hazards at existing facilities. 

IX.m) PAR 1111 will not increase storm water discharge, since no construction activities are 

expected at affected equipment locations. Further, no new areas at existing equipment locations are 

expected to be paved, so the proposed project will not increase storm water runoff during operation. 

Therefore, no new storm water discharge treatment facilities or modifications to existing facilities 

will be required due to the implementation of PAR 1111. Accordingly, PAR 1111 is not expected to 

generate significant adverse impacts relative to construction of new storm water drainage facilities. 

Based upon these considerations, significant hydrology and water quality impacts are not expected 

from the implementation of PAR 1111 and will not be further analyzed in this Final EA. Since no 

significant hydrology and water quality impacts were identified, no mitigation measures are 

necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

X. LAND USE AND PLANNING. Would the 

project:

 

a) Physically divide an established community? 

b) Conflict with any applicable land use plan, policy, 

or regulation of an agency with jurisdiction over 

the project (including, but not limited to the 

general plan, specific plan, local coastal program 

or zoning ordinance) adopted for the purpose of 

avoiding or mitigating an environmental effect? 



c) Conflict with any applicable habitat conservation 

or natural community conservation plan?



Significance Criteria 

Land use and planning impacts will be considered significant if the project conflicts with the 

land use and zoning designations established by local jurisdictions. 

Discussion 

X.a) PAR 1111 would only affect combustion equipment primarily at existing equipment 

locations. The expected options for compliance with the proposed future NOx emission limits in 

PAR 1111 will involve the installation of new compliant equipment at the end of the 

equipment’s useful life. Since PAR 1111 affects equipment primarily operating at existing 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-27 November 2009 

equipment locations, it does not include any components that would require physically dividing 

an established community. 

X.b) & c) There are no provisions in PAR 1111 that would affect land use plans, policies, or 

regulations. Land use and other planning considerations are determined by local governments 

and no land use or planning requirements will be altered by regulating NOx emissions from 

affected natural gas-fired combustion equipment. Since PAR 1111 would establish lower NOx 

emission limits for these combustion devices, PAR 1111 would not affect in any way habitat 

conservation or natural community conservation plans, agricultural resources or operations, and 

would not create divisions in any existing communities. Therefore, present or planned land uses 

in the region will not be significantly adversely affected as a result of PAR 1111. 

Based upon these considerations, significant land use and planning impacts are not expected 

from the implementation of PAR 1111 and will not be further analyzed in this Final EA. Since 

no significant land use and planning impacts were identified, no mitigation measures are 

necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XI. MINERAL RESOURCES. Would the project: 

a) Result in the loss of availability of a known mineral 

resource that would be of value to the region and the 

residents of the state? 



b)Result in the loss of availability of a locallyimportant mineral resource recovery site delineated

on a local general plan, specific plan or other land 

use plan? 



Significance Criteria 

Project-related impacts on mineral resources will be considered significant if any of the 

following conditions are met: 

- The project would result in the loss of availability of a known mineral resource that would be 

of value to the region and the residents of the state. 

- The proposed project results in the loss of availability of a locally-important mineral resource 

recovery site delineated on a local general plan, specific plan or other land use plan. 

Discussion 

XI.a) & b) There are no provisions in PAR 1111 that would result in the loss of availability of a 

known mineral resource of value to the region and the residents of the state, or of a locallyimportant mineral resource recovery site delineated on a local general plan, specific plan or other 

land use plan. 

Based upon these aforementioned considerations, significant mineral resources impacts are not 

expected from the implementation of PAR 1111 and will not be further analyzed in this Final

EA. Since no significant mineral resources impacts were identified, no mitigation measures are 

necessary or required. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-28 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XII. NOISE. Would the project result in: 

a) Exposure of persons to or generation of noise levels 

in excess of standards established in the local 

general plan or noise ordinance, or applicable 

standards of other agencies? 



b) Exposure of persons to or generation of excessive 

groundborne vibration or groundborne noise levels? 



c) A substantial permanent increase in ambient noise 

levels in the project vicinity above levels existing 

without the project? 



d) A substantial temporary or periodic increase in 

ambient noise levels in the project vicinity above 

levels existing without the project? 



e) For a project located within an airport land use plan 

or, where such a plan has not been adopted, within 

two miles of a public airport or public use airport, 

would the project expose people residing or working

in the project area to excessive noise levels? 



f) For a project within the vicinity of a private airship, 

would the project expose people residing or working

in the project area to excessive noise levels? 



Significance Criteria 

Impacts on noise will be considered significant if:

- Construction noise levels exceed the local noise ordinances or, if the noise threshold is 

currently exceeded, project noise sources increase ambient noise levels by more than three 

decibels (dBA) at the site boundary. Construction noise levels will be considered significant 

if they exceed federal Occupational Safety and Health Administration (OSHA) noise 

standards for workers. 

- The proposed project operational noise levels exceed any of the local noise ordinances at the 

site boundary or, if the noise threshold is currently exceeded, project noise sources increase 

ambient noise levels by more than three dBA at the site boundary. 

Discussion 

XII.a) PAR 1111 would only affect combustion equipment at primarily existing residential 

and/or commercial areas. Since installation of new equipment does not require heavy-duty 

construction equipment, significant adverse noise impacts are not anticipated. The expected 

options for compliance with the proposed future NOx emission limits in PAR 1111 will involve 

the installation of new equipment at the end of the equipment’s useful life. No other physical 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-29 November 2009 

modifications or changes associated with the implementation of PAR 1111 are expected. Thus, 

the proposed project is not expected to expose persons to the generation of excessive noise levels 

above current facility levels because the proposed project will result in affected equipment 

locations operating the same type of equipment at equivalent or similar noise levels and low 

NOx combustion technology is not typically a noise intensive technology. It is expected that any 

facility affected by PAR 1111 will comply with all existing noise control laws or ordinances. 

XII.b) PAR 1111 is not anticipated to expose people to or generate excessive groundborne 

vibration or groundborne noise levels since no construction activities are expected to occur at the 

existing equipment locations and the affected equipment are not inherently noisy or create 

excessive vibrations. 

XII.c) A permanent increase in ambient noise levels at the affected equipment locations above 

existing levels and low NOx combustion technology is not typically a noise intensive 

technology. The proposed project is unlikely to occur because any new equipment that would be 

installed as part of implementing PAR 1111 will be replacing existing equipment with the same 

or similar noise profiles. Therefore, the existing noise levels are unlikely to change and raise 

ambient noise levels in the vicinities of the existing equipment locations to above a level of 

significance in response to implementing PAR 1111. 

XII.d) No increase in periodic or temporary ambient noise levels in the vicinity of affected 

equipment locations above levels existing prior to PAR 1111 is anticipated because the proposed 

project would not require construction-related activities at affected equipment locations or 

change the existing operations. See also the response to item XII.a). 

XII.e) & f) Implementation of PAR 1111 would not consist of improvements within the existing 

equipment locations requiring major construction activities. Even if affected equipment 

locations are located near a public/private airport, there are no new noise impacts expected from 

any of the existing equipment locations as a result of complying with the proposed project. 

Thus, PAR 1111 is not expected to expose people residing or working in the project vicinities to 

excessive noise levels. See also the response to item XII.a). 

Based upon these considerations, significant noise impacts are not expected from the 

implementation of PAR 1111 and are not further evaluated in this Final EA. Since no significant 

noise impacts were identified, no mitigation measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XIII. POPULATION AND HOUSING. Would the 

project:

 

a) Induce substantial growth in an area either directly 

(for example, by proposing new homes and 

businesses) or indirectly (e.g. through extension of 

roads or other infrastructure)?


Final Environmental Assessment: Chapter 2 

PAR 1111 2-30 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

b) Displace substantial numbers of existing housing, 

necessitating the construction of replacement 

housing elsewhere?



c) Displace substantial numbers of people, 

necessitating the construction of replacement 

housing elsewhere? 



Significance Criteria 

Impacts of the proposed project on population and housing will be considered significant if the 

following criteria are exceeded: 

- The demand for temporary or permanent housing exceeds the existing supply. 

- The proposed project produces additional population, housing or employment inconsistent 

with adopted plans either in terms of overall amount or location. 

Discussion 

XIII.a) Because the installation of new equipment only requires minimal labor, it is expected 

that workers can be drawn from the existing labor pool in southern California. Further, the 

proposed project is not anticipated to generate any significant effects, either direct or indirect, on

the District's population or population distribution as no additional workers are anticipated to be 

required at equipment locations subject to the proposed amendments. Human population within 

the jurisdiction of the SCAQMD is anticipated to grow regardless of implementing PAR 1111. 

As such, PAR 1111 will not result in changes in population densities or induce significant 

growth in population. 

XIII.b) & c) Because the proposed project is primarily located in existing residential and/or 

commercial areas, PAR 1111 is not expected to result in the creation of any industry that would 

affect population growth, directly or indirectly induce the construction of single- or multiplefamily units, or require the displacement of people elsewhere. 

Based upon these considerations, significant population and housing impacts are not expected 

from the implementation of PAR 1111 and are not further evaluated in this Final EA. Since no 

significant population and housing impacts were identified, no mitigation measures are necessary 

or required. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-31 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XIV. PUBLIC SERVICES. Would the proposal 

result in substantial adverse physical impacts 

associated with the provision of new or 

physically altered governmental facilities, need 

for new or physically altered government 

facilities, the construction of which could cause 

significant environmental impacts, in order to 

maintain acceptable service ratios, response 

times or other performance objectives for any of 

the following public services:

 

 a) Fire protection? 

 b) Police protection? 

 c) Schools? 

 d) Parks? 

 e) Other public facilities? 

Significance Criteria 

Impacts on public services will be considered significant if the project results in substantial 

adverse physical impacts associated with the provision of new or physically altered 

governmental facilities, or the need for new or physically altered government facilities, the 

construction of which could cause significant environmental impacts, in order to maintain 

acceptable service ratios, response time or other performance objectives. 

Discussion 

XIV.a) & b) PAR 1111 would only affect combustion equipment located in primarily 

residential settings, however, the affected units may also be found include units in small 

commercial buildings. The expected options for compliance with the proposed future NOx 

emission limits in PAR 1111 will involve the installation of new equipment at the end of the 

equipment’s useful life with low NOx burners that will be compliant with fire department 

standards. No other physical modifications or changes associated with the implementation of 

PAR 1111 are expected. The overall amount of natural gas at any one equipment location over 

their current levels is not expected to change substantially or increase the chances for fires or 

explosions that could affect local fire departments. Finally, PAR 1111 is not expected to 

increase the need for security at affected equipment locations, which could adversely affect local 

police departments. 

XIV.c) & d) The local labor pool (e.g., workforce) of particular affected equipment location 

areas is expected to remain the same since PAR 1111 would not trigger any changes to current 

equipment operations. Therefore, with no increase in local population anticipated, no significant 

adverse impacts are expected to local schools or parks. 

XIV.e) The proposed project will result in replacing existing equipment with functionally 

identical new equipment at the end of the existing equipment’s useful life. The proposed project 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-32 November 2009 

does not require the need for government services. Implementation of PAR 1111 would not 

result in the need for new or physically altered government facilities in order to maintain 

acceptable service ratios, response times, or other performance objectives. There will be no 

increase in population and, therefore, no need for physically altered government facilities. 

Based upon these considerations, significant public services impacts are not expected from the 

implementation of PAR 1111 and are not further evaluated in this Final EA. Since no significant 

public services impacts were identified, no mitigation measures are necessary or required. 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XV. RECREATION. 

a) Would the project increase the use of existing 

neighborhood and regional parks or other 

recreational facilities such that substantial physical 

deterioration of the facility would occur or be 

accelerated?



b) Does the project include recreational facilities or 

require the construction or expansion of recreational 

facilities that might have an adverse physical effect 

on the environment?



Significance Criteria 

Impacts to recreation will be considered significant if: 

- The project results in an increased demand for neighborhood or regional parks or other 

recreational facilities. 

- The project adversely affects existing recreational opportunities. 

Discussion 

XV.a) & b) As previously discussed under “Land Use and Planning,” there are no provisions in 

the PAR 1111 that would affect land use plans, policies, or regulations. Land use and other 

planning considerations are determined by local governments and no land use or planning 

requirements will be altered by the changes proposed in PAR 1111. The proposed project would 

not increase the demand for or use of existing neighborhood and regional parks or other 

recreational facilities or require the construction of new or expansion of existing recreational 

facilities that might have an adverse physical effect on the environment because it will not 

directly or indirectly increase or redistribute population. 

Based upon these considerations, significant recreation impacts are not expected from the 

implementation of PAR 1111 and are not further evaluated in this Final EA. Since no significant 

recreation impacts were identified, no mitigation measures are necessary or required. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-33 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XVI. SOLID/HAZARDOUS WASTE. Would the 

project:

 

a) Be served by a landfill with sufficient permitted 

capacity to accommodate the project’s solid waste 

disposal needs? 



b) Comply with federal, state, and local statutes and 

regulations related to solid and hazardous waste? 



Significance Criteria 

The proposed project impacts on solid/hazardous waste will be considered significant if the 

following occurs: 

- The generation and disposal of hazardous and non-hazardous waste exceeds the capacity of 

designated landfills. 

Discussion 

XVI.a) & b) Compliance with PAR 1111 means installing new compliant units or replacing 

existing units at the end of their useful lifetime with units utilizing low NOx burner technology. 

Because affected equipment has a finite lifetime, it will ultimately have to be replaced at the end 

of its useful life. Affected equipment may be refurbished and used elsewhere or the scrap metal 

from replaced units has economic value and is expected to be recycled, so any solid or hazardous 

waste impacts specifically associated with PAR 1111 are expected to be minor. As a result, no 

substantial change in the amount or character of solid or hazardous waste streams is expected to 

occur. PAR 1111 is not expected to increase the volume of solid or hazardous wastes from 

affected facilities, require additional waste disposal capacity, or generate waste that does not 

meet applicable local, state, or federal regulations. 

Based upon these considerations, PAR 1111 is not expected to increase the volume of solid or 

hazardous wastes that cannot be handled by existing municipal or hazardous waste disposal 

facilities, or require additional waste disposal capacity. Further, implementing PAR 1111 is not 

expected to interfere with any affected facility’s ability to comply with applicable local, state, or 

federal waste disposal regulations. Since no solid/hazardous waste impacts were identified, no 

mitigation measures are necessary or required. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-34 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XVII.TRANSPORTATION/TRAFFIC. Would the 

project:

 

a) Cause an increase in traffic which is substantial in 

relation to the existing traffic load and capacity of 

the street system (i.e., result in a substantial increase 

in either the number of vehicle trips, the volume to 

capacity ratio on roads, or congestion at 

intersections)? 



 

b) Exceed, either individually or cumulatively, a level 

of service standard established by the county 

congestion management agency for designated roads 

or highways? 



c) Result in a change in air traffic patterns, including 

either an increase in traffic levels or a change in

location that results in substantial safety risks? 



d) Substantially increase hazards due to a design feature 

(e.g. sharp curves or dangerous intersections) or 

incompatible uses (e.g. farm equipment)? 



e) Result in inadequate emergency access? 

f) Result in inadequate parking capacity? 

g) Conflict with adopted policies, plans, or programs 

supporting alternative transportation (e.g. bus 

turnouts, bicycle racks)? 



Significance Criteria 

Impacts on transportation/traffic will be considered significant if any of the following criteria 

apply: 

- Peak period levels on major arterials are disrupted to a point where level of service (LOS) is 

reduced to D, E or F for more than one month. 

- An intersection’s volume to capacity ratio increase by 0.02 (two percent) or more when the 

LOS is already D, E or F. 

- A major roadway is closed to all through traffic, and no alternate route is available. 

- There is an increase in traffic that is substantial in relation to the existing traffic load and 

capacity of the street system. 

- The demand for parking facilities is substantially increased. 

- Water borne, rail car or air traffic is substantially altered. 

- Traffic hazards to motor vehicles, bicyclists or pedestrians are substantially increased. 

- The need for more than 350 employees 

- An increase in heavy-duty transport truck traffic to and/or from the facility by more than 350 

truck round trips per day 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-35 November 2009 

- Increase customer traffic by more than 700 visits per day. 

Discussion 

XVII.a) & b) PAR 1111 affects equipment that is primarily located in existing residential and/or 

commercial areas and has no potential to adversely affect transportation. The expected options 

for compliance with the proposed future NOx emission limits in PAR 1111 will involve the 

installation of new compliant equipment at the end of the equipment’s useful life. PAR 1111 

would have no aeffect on existing equipment locations that would change or cause additional 

transportation demands or services. The implementation of PAR 1111 is not expected to 

adversely affect circulation patterns on local roadways or the level of service at intersections near 

affected facilities. The proposed amended rule will not change the current natural gas-fired 

furnace distribution system and will not change the replacement schedule of existing furnaces. 

Finally, no construction-related activities are expected to be associated with installing compliant 

equipment. 

XVII.c) The expected option for compliance with the proposed future NOx emission limits in 

PAR 1111 will involve the installation of new compliant equipment with low NOx burners. 

However, PAR 1111 will not require operators of existing equipment to construct buildings or 

other structures that could interfere with flight patterns so the height and appearance of the 

existing structures are not expected to change. Therefore, implementation of PAR 1111 is not 

expected to adversely affect air traffic patterns. Further, PAR 1111 will not affect in any way air 

traffic in the region because it will not require transport of any materials by air. 

XVII.d) No physical modifications are expected to occur by implementing PAR 1111. 

Therfore, no offsite modifications to roadways are anticipated for the proposed project that 

would result in an additional design hazard or incompatible uses. 

XVII.e) Any equipment replacements associated with implementing PAR 1111 will likely occur 

in or about the same location within the confines of each existing equipment location such that 

no changes to emergency access at or in the vicinity of the affected equipment locations would 

be expected. As a result, PAR 1111 is not expected to adversely impact emergency access. 

XVII.f) Other than the equipment replacements associated with implementing PAR 1111, No 

changes to the parking capacity at or in the vicinity of the affected equipment locations are 

expected. Further, PAR 1111 is not expected to require additional workers, so additional parking 

capacity will not be required. Therefore, PAR 1111 is not expected to adversely impact on- or 

off-site parking capacity. 

XVII.g) Other than equipment replacement at the end of its useful life, no facility modifications 

or changes are expected that would conflict with alternative transportation, such as bus turnouts, 

bicycle racks, et cetera. 

Based upon these considerations, PAR 1111 is not expected to generate significant adverse 

transportation/traffic impacts and, therefore, this topic will not be considered further. Since no 

significant transportation/traffic impacts were identified, no mitigation measures are necessary or 

required. 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-36 November 2009 

Potentially 

Significant 

Impact 

Less Than 

Significant 

Impact 

No Impact 

XVIII. MANDATORY FINDINGS OF 

SIGNIFICANCE. 

 

a) Does the project have the potential to degrade the 

quality of the environment, substantially reduce the 

habitat of a fish or wildlife species, cause a fish or 

wildlife population to drop below self-sustaining 

levels, threaten to eliminate a plant or animal 

community, reduce the number or restrict the range 

of a rare or endangered plant or animal or eliminate 

important examples of the major periods of 

California history or prehistory?



b) Does the project have impacts that are individually 

limited, but cumulatively considerable? 

("Cumulatively considerable" means that the 

incremental effects of a project are considerable 

when viewed in connection with the effects of past 

projects, the effects of other current projects, and the 

effects of probable future projects.)



c) Does the project have environmental effects that will 

cause substantial adverse effects on human beings, 

either directly or indirectly?



XVIII.a) As discussed in the “Biological Resources” section, PAR 1111 is not expected to 

significantly adversely affect plant or animal species or the habitat on which they rely because 

the affected equipment is primarily located in existing residential and/or commercial areas which 

have already been greatly disturbed and that currently do not support such habitats. 

Additionally, special status plants, animals, or natural communities are not expected to be found 

within close proximity to the facilities affected by PAR 1111. 

XVIII.b) Based on the foregoing analyses, since PAR 1111 will not generate any projectspecific significant environmental impacts, PAR 1111 is not expected to cause cumulative 

impacts in conjunction with other projects that may occur concurrently with or subsequent to the 

proposed project. Related projects to the currently proposed project include existing and 

proposed rules and regulations, as well as 2007 AQMP control measures. Furthermore, the 

effects of PAR 1111 will not be "cumulatively considerable" because there are no, or minor, 

incremental impacts and there will be no contribution to a significant cumulative impact caused 

by other projects that would exist in absence of the proposed project. For example, the 

environmental topics checked ‘No Impact’ (e.g., aesthetics, agriculture resources, biological 

resources, cultural resources, energy, geology and soils, hazards and hazardous materials, 

hydrology and water quality, land use and planning, mineral resources, noise, population and 

housing, public services, recreation, solid/hazardous waste and transportation and traffic) would 

not be expected to make any contribution to potential cumulative impacts whatsoever. For the 

environmental topic checked ‘Less than Significant Impact’ (e.g., air quality), the analysis 
Final Environmental Assessment: Chapter 2 

PAR 1111 2-37 November 2009 

indicated that project impacts would not exceed any project-specific significance thresholds. 

This conclusion is based on the fact that the analyses for each of these environmental areas 

concluded that there would be no incremental effects of the proposed project would beor are

minor and, therefore, not considered to be cumulatively considerable. Also, in the case of air 

quality impacts, the net effect of implementing the proposed project with other proposed rules 

and regulations, and control measures in the 2007 AQMP is an overall reduction in district-wide 

emissions contributing to the attainment of state and national ambient air quality standards. 

Therefore, the proposed project has no potential for generating significant adverse cumulative or 

cumulatively considerable impacts. 

XVIII.c) Based on the foregoing analyses, PAR 1111 is not expected to cause adverse effects on 

human beings. Significant air quality impacts are not expected from the implementation of PAR 

1111. The direct impact from the proposed project, however, is an air quality benefit with an 

overall average NOx reduction of NOx by less than 0.1 ton per day by 2014 and 2.53.1 tons per 

day by 2023. No significant adverse impacts to aesthetics, agriculture resources, biological 

resources, cultural resources, energy, geology and soils, hazards and hazardous materials, 

hydrology and water quality, land use and planning, mineral resources, noise, population and 

housing, public services, recreation, solid/hazardous waste and transportation and traffic are 

expected as a result of the implementation of PAR 1111. 

As discussed in items I through XVIII above, the proposed project has no potential to cause 

significant adverse environmental effects. 
A P P E N D I X A 

P R O P O S E D A M E N D E D R U L E 1 1 1 1
PAR 1111 - 2 

(Adopted December 1, 1978)(Amended July 8, 1983)(Date of Amendment)

RULEPAR 1111. REDUCTION OF NOx EMISSIONS FROM NATURAL-GASFIRED, FAN-TYPE CENTRAL FURNACES

(a) Purpose and Applicability

 The purpose of this rule is to reduce NOx emissions from natural gas-fired, fantype central furnaces, as defined in this rule. This rule applies to manufacturers, 

distributors, sellers and installers of residential and commercial fan-type central 

furnaces, requiring either single-phase or three-phase electric supply, used for 

comfort heating with a rated heat input capacity of less than 175,000 BTU per 

hour;, or, for combination heating and cooling units, a cooling rate of less than 

65,000 BTU per hour. 

(ab) Definitions 

(1) ANNUAL FUEL UTILIZATION EFFICIENCY (AFUE) is defined in 

Section 10.1 of Code of Federal Regulations, Title 10, Part 430, Subpart 

B, Appendix N.

(2) BTU means British thermal unit or units.

(3) CONDENSING FURNACE means a high-efficiency furnace that uses a 

second heat exchanger to extract the latent heat in the flue gas by cooling 

the combustion gasses to near ambient temperature so that water vapor 

condenses in the heat exchanger, is collected and drained.

(14) FAN TYPE CENTRAL FURNACEan Type Central Furnace is a selfcontained space heater providing for circulation of heated air at pressures 

other than atmospheric through ducts more than 10 inches in length that 

have: 

(A) an input rate RATED HEAT INPUT CAPACITY of less than 

175,000 BTU/ per hour; or 

(B) for combination heating and cooling units, a cooling rate of less 

than 65,000 BTU/ per hour. 

(2) Annual Fuel Utilization Efficiency (AFUE) is defined in Section 4.2.35 of 

Code of Federal Regulations, Title 10, Part 430, Subpart B, Appendix N.

(5) HEAT INPUT means the higher heating value of the fuel to the furnace 

measured as BTU per hour. 
Proposed Amended Rule 1111 (Cont.) (Date of Adoption) 

PAR 1111 - 3

(6) NOx EMISSIONS means the sum of nitrogen oxide and nitrogen dioxide 

(oxides of nitrogen) in the flue gas, collectively expressed as nitrogen 

dioxide. 

(7) RATED HEAT INPUT CAPACITY means the gross HEAT INPUT of the 

combustion device. 

(8) RESPONSIBLE OFFICIAL means: 

(A) For a corporation: a president or vice-president of the corporation 

in charge of a principal business function or a duly authorized 

person who performs similar policy-making functions for the 

corporation, or 

(B) For a partnership or sole proprietorship: general partner or 

proprietor, respectively,. 

(9) SINGLE FIRING RATE means the burners and control system are 

designed to operate at only one fuel input rate and the control system 

cycles burners between the maximum heat output and no heat output.

(310) USEFUL HEAT DELIVERED TO THE HEATED SPACEseful Heat 

Delivered to the Heated Space is the AFUE (expressed as a fraction) 

multiplied by the heat input. 

(11) VARIABLE FIRING RATE means the burners and control system are 

designed to operate at more than one fuel input rate and the control system 

cycles burners between two or more heat output rates and no heat output.

(12) WEATHERIZED means designed for installation outside of a building, 

equipped with a protective jacket and integral venting, and labeled for 

outdoor installation.

(bc)Requirements 

(1) A manufacturer shall not, after January 1, 1984, manufacture or supply for 

sale or use in the South Coast Air Quality Management District naturalgas-fired, fan-type central furnaces, unless such furnaces meet the 

requirements of subparagraph (c)(3). 

(2) A person shall not, after April 2, 1984, sell or offer for sale within the 

South Coast Air Quality Management District natural-gas-fired, fan-type 

central furnaces unless such furnaces meet the requirements of 

subparagraph (c)(3). 
Proposed Amended Rule 1111 (Cont.) (Date of Adoption) 

PAR 1111 - 4

(3) Natural-gas-fired, fan-type central furnaces shall: 

(A) not emit more than 40 nanograms of oxides of nitrogen (calculated 

as NO2) per joule of useful heat delivered to the heated space; and 

(B) be certified in accordance with paragraph subdivision (cd) of this 

rule. 

(4) On or after October 1, 2012, a person shall not manufacture, supply, sell, 

offer for sale, or install, for use in the South Coast Air Quality 

Management District, natural-gas-fired, fan-type central furnaces subject 

to this rule, unless such furnace complies with the applicable emission 

limit and compliance date set forth in Table 1 and is certified in 

accordance with subdivision (d) of this rule. 

Table 1 – Furnace NOx Limits and Compliance Schedule

* Nanograms of oxides of nitrogen (calculated as NO2) per joule of useful heat delivered to the 

heated space

(cd)Certification 

(1) The manufacturer shall have each appliance model tested in accordance 

with the following: 

(A) Oxides of nitrogen measurements, test equipment, and other 

required test procedures shall be in accordance with methods 

approved by the Executive Officer AQMD Method 100.1. 

(B) Operation of the furnace shall be in accordance with the 

procedures specified in Section 3.14.0 of Code of Federal 

Regulations, Title 10, Part 430, Subpart B, Appendix N. 

Compliance Date Equipment Category

NOx Emission 

Limit 

(nanograms/Joule

*)

October 1, 2012 Mobile Home Furnace 40

October 1, 2014 Condensing Furnace 14

October 1, 2015 Non-condensing Furnace 14

October 1, 2016 Weatherized Furnace 14

October 1, 2018 Mobile Home Furnace 14
Proposed Amended Rule 1111 (Cont.) (Date of Adoption) 

PAR 1111 - 5

(2) One of the two formulas shown below shall be used to determine the 

nanograms of oxides of nitrogen per joule of useful heat delivered to the 

heated space: 

 N = 4.566 x 104 x P x U, N = 3.655 x 1010 x P

 H x C x E (20.9-Y) x Z x E 

 Where: 

 N = nanograms of emitted oxides of nitrogen per joule of useful 

heat. 

 P = concentration (ppm volume) of oxides of nitrogen in flue 

gas as tested. 

 U = volume percent CO2 in water-free flue gas for stoichiometric 

combustion. 

 H = gross heating value of fuel, BTU/cu.ft. (60oF, 30-in. Hg). 

 C = measured volume percent of CO2 in water-free flue gas, 

assuming complete combustion and no CO present. 

 E = AFUE, percent (calculated using Table 2). 

 Y = volume percent of O2 in flue gas. 

 Z = heating value of gas, joules/cu. meter (0.0oC, 1 ATM). 

(3) At least 120 days prior to the date a furnace model is first shipped to a 

location in the AQMD for use in the District, Tthe manufacturer shall 

submit to the Executive Officer the following: 

(A) A statement that the model is in compliance with 

subsectiondivision (bc). (The statement shall be signed by a 

responsible official and dated, and shall attest to the accuracy of all 

statements.) 

(B) General Information 

 (i) Name and address of manufacturer. 

 (ii) Brand name. 

 (iii) Model number, as it appears on the furnace rating plate. 

(C) A description of the furnace and specifications for each model 

being certified. 
Proposed Amended Rule 1111 (Cont.) (Date of Adoption) 

PAR 1111 - 6

(D) Executive Officer approved emission test protocol and emission 

test results verifying compliance with the applicable NOx limit 

specified in Table 1.

(de)Identification of Compliant Units

(1)The manufacturer shall display the model number of the furnace complying 

with subsectiondivisions (bc) and (d) shall display the following on the 

shipping cartonontainer label and rating plate. of the furnace: 

(A)Model number;

(B)Heat input capacity;

(C)ApplicableCertified NOx emission levellimit in Table 1; and

(D)Date of manufacture or date code.

(2) Any non-certified furnace shipped to a location in the South Coast Air 

Quality Management District for distribution or sale outside of the District 

shall have a label on the shipping container identifying the furnace as not 

certified for use in the District.

(ef)Enforcement 

(1) The Executive Officer may require the emission test results to be provided 

when deemed necessary to verify compliance.

(2) The Executive Officer may periodically conduct such tests as are deemed 

necessary to insureensure compliance with subsectiondivision (bc), (d), (e) and 

(h). 

(fg) Exemptions 

(1) The provisions of this rule shall not apply to furnaces installed in mobile 

homes before October 1, 2012. 

(2) The provisions of this rule shall not apply to natural-gas-fired, fan-type 

central furnaces utilizing three-phase electrical current until January 1, 

1986.

(2) For furnaces manufactured, purchased and delivered to the South Coast 

Air Quality Management District prior to the applicable compliance date 

in Table 1, any person may, until 300 days after the applicable compliance 

date, sell, offer for sale, or install such a furnace in the District, so long as 

the furnace meets the requirements of paragraph (c)(3) and subdivisions 

(d) and (e).
Proposed Amended Rule 1111 (Cont.) (Date of Adoption) 

PAR 1111 - 7

(h) Rebate Incentives for Early Compliance

Any manufacturer of natural gas-fired, fan-type central furnaces subject to this 

rule thatand distributes orand sells into the District furnaces that comply with the 

14 nanograms/Joule emission limit 90 days prior to the applicable compliance 

date in Table 1 of paragraph (c)(4) may submit a compliance plan for early 

compliance to the Executive Officer and to receive on a first-come first-served 

basis from the AQMD a rebate payment of $75 for each 14 nanograms/ per Joule 

certified furnace and $90 for each high efficiency 14 nanograms/Joule certified 

furnace with AFUE of 90% or greater distributed andor sold into the District,

prior to the applicable compliance date provided funds are available on the date 

documentation onf the number of units distributed andor sold is submitted to the 

AQMD. Total rebate payments to all manufacturers shall not exceed $3,000,000.

(i) Technology Assessment

On or before April 1, 2013, the Executive Officer shall conduct a technology assessment 

and shall report to the Governing Board on the status of manufacturers’ progress towards 

compliance with the 14 nanograms/ per Joule emission limit for nitrogen oxidees.