2. SCAQMD Boiler Rules Rule 1146.2 – Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers March 22, 2006

3. AQMD Boiler NOx Limits Rule 1146 – 30 ppm NOx (25 ppm for larger units) Rule 1146.1 – 30 ppm NOx Rule 1146.2 – 30 ppm NOx for units > 0.4 MM Btu/hr and 55 ppm for smaller units Rule 1121 – 15 ppm NOx

4. Background Rule 1146.2 Adopted in 1998 Established NOx and CO emission limits for new equipment (2000 & 2001) –55 ppm for Type 1 (75,000 to 0.4 MM Btu/hr) –30 ppm for Type 2 ( >0.4 to 2 MM Btu/hr) Established compliance dates for in-use Type 2 units – > 1 MM Btu/hr (7/1/02 and 1/1/05) – > 0.4 to < 1 MM Btu/hr (1/1/06)

5. Implementation Studies Three Implementation Studies conducted since 1999 Phase III Implementation Study for units > 0.4 MM to 1 MM Btu/hr (July 2004) –Pre-Certified retrofit kits not widely developed –Retrofit burners not available for many units –Recommendation to modify retrofit requirements and lower emission limits for new units Similar Implementation Issues for units > 1 MM Btu/hr

6. January 2005 Rule Amendment Extended compliance dates to retrofit or replace in-use units Compliance based on 15 year life Effective date for retrofit started January 1, 2006

7. Proposed 1146.2 Amendment – May 2006 Proposed amendments would: –Lower NOx emission limits for new units –Require owners keep records of maintenance and equipment modifications –Clarify applicability of rule Rule amendment will reduce NOx emissions in order to meet PM2.5 ambient air quality standard

8. Rule Amendment Schedule Set Hearing in March 2006 Public Hearing – April 2006

9. AQMD Contact Wayne Barcikowski 909-396-3077 wbarcikowski@aqmd.gov

10. 15 Year Life Assumption Average life of equipment Date of manufacture used because: –Businesses could install used equipment if based on installation date –Manufacture date/year is on nameplate –Is consistent for all situations

11. 1146.2 Exemption Level Compliance with exemption level (9,000 therms) can be shown using: –Gas meter –Hourly meter –Calculations (gas meter and equipment ratings) Boilers used only for building heat are often exempt (schools, office buildings, hospitals) –1.5 MM Btu/hr unit operating 4 months - likely exempt Units providing hot water may not be exempt Larger buildings often have Rule 1146.1 units