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CC SR 20250506 H - AQMD Rules 1111 and 1121 CITY COUNCIL MEETING DATE: 05/06/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration to support South Coast Air Quality Management District ’s draft Proposed Amended Rules 1111 and 1121 RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a letter of support for South Coast Air Quality Management District’s (AQMD) draft Proposed Amended Rules (PAR) 1111 and 1121 to require zero-emission standards for residential furnaces and water heaters. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Catherine Jun, Deputy City Manager REVIEWED BY: Same as below APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A) Letter of Support for AQMD Draft PAR 1111 and 1121 (Page A-1) B) Draft PAR 1111 posted on April 1, 2025 (Page B-1) C) Draft PAR 1121 posted on April 1, 2025 (Page C-1) D) 2025 Legislative Platform (Page D-1) BACKGROUND: Originally adopted on December 1, 1978, AQMD Rules 1111 and 1121 are clean air regulations that set limits on nitrogen oxide (NOx) emissions from natural gas furnaces and water heaters, respectively. NOx emissions are a major contributor to smog and respiratory health concerns. Since 1978, the rules have been amended several times to require the manufacture, distribution, sales, and installation of cleaner-burning gas appliances. As a result, most household furnaces and water heaters now meet stricter standards, playing a role in reducing emissions in Southern California homes and yielding improved public health outcomes as a result. 1 However, the South Coast AQMD region still fails to meet multiple ozone standards in which NOx emissions remain a key pollutant. AQMD estimates that the region must cut NOx emissions by over 67% using zero-emission technologies to meet air quality standards by 2037 or risk potential sanctions such as the loss of federal highway funds. In light of this, the AQMD Governing Board, on June 6, 2025, will consider a new series of proposed amendments to Rules 1111 and 1121 that seek to further reduce emissions. Given their potential impact to the region , public health, and the environment, Council Member Steve Perestam, during the April 15, 2025 City Council meeting, requested a discussion and consideration of a support letter that would be submitted to the AQMD Governing Board prior to their deliberations. A support position would align with the City’s 2025 Legislative Platform’s Priority Policy Area 5E - “Support legislation which allows for regional considerations within Los Angeles County, particularly at the council of governments (COG) level, in relation to public health, homelessness, and sustainability, among other areas of regional significance.” The Legislative Platform is available under Attachment D. DISCUSSION: PAR 1111 and 1121: General Requirements Since October 2023, AQMD has been in the process of proposing amendments to the Rules, which are referred to as PAR 1111 and PAR 1121 (Attachments B and C). Following a series of working group meetings, stakeholder meetings, and site visits, PAR 1111 and 1121 were developed to further reduce air pollution by requiring the use of zero- emission heaters, furnaces, boilers, and heat pumps in new and existing homes over time. For reference, a typical zero-emission appliance runs on electricity only. As of April 1, 2025, the latest drafts of PAR 1111 and 1121 require only zero-NOx emission units be manufactured, supplied, sold, resold, offered for sale, imported, or installed for use within the South Coast jurisdiction, per this compliance schedule: No Emission Equipment Category Building Type Compliance Date Water Heater New January 1, 2027 Existing January 1, 2029 Residential Fan-Type Central Furnace New January 1, 2027 Existing January 1, 2029 Wall and Floor Furnace New January 1, 2027 Existing January 1, 2029 Mobile Home Furnace New January 1, 2027 Mobile Home Water Heater New January 1, 2027 2 As of April 11, 2025, AQMD received over 12,500 comment letters. Among those letters were concerns about the increased costs for homeowners and landlords to convert gas appliances to zero-emission units within a relatively short time frame. Furthermore, those letters question whether there is sufficient supply - of both electrical appliances and electrical load - to satisfy the new requirements. AQMD cites their Alternative Compliance Options as a means of easing into these requirements, as summarized below. The proposed rule changes are anticipated to affect five million homes across Southern California and eventually reduce more than 6 tons of NOx emissions per day by the time it is fully implemented in 2037. For context, power plants emit 3 tons per day, re fineries 4 tons per day; and passenger vehicles 7 tons per day. Over the long term, the air quality improvements are expected to contribute to public health benefits, including fewer respiratory issues and hospital visits. PAR 1111 and 1121: Alternative Compliance Options Manufacturers may opt for the alternative compliance option, which would be available starting January 1, 2027. This option would allow manufacturers to sell appliances emitting NOx under specified sales targets in new and existing homes - for a fee to “incentivize transition to zero-emission technologies without putting undue stress on homeowners.” The alternative option would phase out applicable furnaces and water heaters over a longer time frame of 10 years: Under this option, manufacturers must pay a mitigation fee of $100 per gas furnace and $50 per gas water heater unit sold within the targets above. For each gas unit sold over the target, manufacturers would pay higher mitigation fees of $500 per gas furnace and $250 per gas water heater. All fees would increase annually to reflect the consumer price index and would be deposited in the Go-Zero rebate program. The AQMD has already approved $21 million in funding for this pilot incentive program that will provide rebates to residents, installer training, and outreach and application assistance (primarily for disadvantaged communities). This program remains under development and is expected to launch this Spring. 3 CONCLUSION: Given their cited public health and environmental benefits as well as the option to phase in the electric appliances over a longer period of time, Staff recommends the City Council to authorize the Mayor to sign a support letter for PAR 1111 and PAR 1121 (Attachment A). If approved, the position letter would be submitted to the AQMD, prior to a public hearing on June 6, 2025, when the AQMD Governing Board is expected to vote on the PAR 1111 and 1121. ADDITIONAL INFORMATION: Any member of the public, including the Rancho Palos Verdes community, is also able to submit comments and letters directly to AQMD. ALTERNATIVE ACTION: In addition to the Staff recommendations, the following alternative actions are available for the City Council’s consideration: 1) Do not authorize the Mayor to sign the support letter and recommend taking an oppose or neutral position on PAR 1111 and 1121. 2) Request Staff to obtain additional information or monitor both PARs and present it at the May 20 or June 2 City Council meeting for further consideration. 4 30940 HAWTHORNE BLVD. / RANCHO PALOS VERDES, CA 90275-5391 / (310) 544-5207 / FAX (310) 544-5291 / WWW.RPVCA.GOV May 6, 2025 South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 Subject: Support for Proposed Amended Rules 1111 and 1121 Dear Members of the Governing Board, The Rancho Palos Verdes City Council respectfully submits this letter expressing support for the South Coast Air Quality Management District’s (AQMD) Proposed Amended Rules (PAR) 1111 and 1121. The City appreciates AQMD’s continued efforts to balance environmental and public health protections with economic considerations. Given that Southern California fails to meet federal air quality standards that are adversely affecting the health of over 17 million residents , the City recognizes the need to address this challenge as quickly and effectively as possible. Gas furnaces and water heaters are major contributors of NOx emissions, causing respiratory illnesses and significant health-related costs. PAR 1111 and 1121 would further reduce NOx emissions by phasing in the use of zero-emission water heaters and furnaces, a critical step in improving regional air quality and achieving federal and state air quality standards. Doing so is a shared priority that will benefit the entire community. We appreciate that AQMD has engaged in extensive stakeholder outreach on PAR 1111 and 1121 since 2023. This work has helped shape and reshape PAR 1111 and 1121 to be more grounded in realistic implementation timelines that now extend through 2036. This will help minimize financial and logistical burdens to residents, businesses, and manufacturers. In closing, the City of Rancho Palos Verdes supports the adoption of PAR 1111 and 1121 and appreciates AQMD’s commitment to fostering a healthier and more A-1 Rancho Palos Verdes PAR 1111 and 1121 May 6, 2025 Page 2 sustainable future for all South Coast residents. We look forward to continuing to work collaboratively with AQMD and our regional partners to advance air quality improvements. Thank you for your leadership and consideration. Sincerely, David L. Bradley Mayor cc: Rancho Palos Verdes City Council A-2 Draft Proposed Amended Rule 1111 PAR 1111 – 1 (Adopted December 1, 1978)(Amended July 8, 1983)(Amended November 6, 2009) (Amended September 5, 2014)(Amended March 2, 2018)(Amended July 6, 2018) (Amended December 6, 2019)(Amended September 4, 2020)(Amended October 1, 2021) (Amended September 1, 2023)(Amended [DATE OF RULE ADOPTION]) PROPOSED AMENDED RULE 1111 REDUCTION OF NOx EMISSIONS FROM NATURAL- GAS- FIRED , FAN- TYPE CENTRAL FURNACES [RULE INDEX TO BE ADDED AFTER RULE ADOPTION] (a) Purpose and Applicability The purpose of this rule is to reduce Oxides of Nitrogen (NOx) emissions from fan- type central furnaces Furnaces used for interior space heating, 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. (b) Applicability The provisions of this rule are applicable to manufacturers, distributors, retailers, Resellers, and Installers of Furnaces used for interior space heating with a Rated Heat Input Capacity less than 175,000 British thermal units (Btu) per hour, or, for combination heating and cooling units, a cooling rate of less than 65,000 Btu per hour. (bc) 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. (32) CONDENSING FURNACE means a high-efficiency furnace Residential Fan-Type Central 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, and is collected and drained. (3) Consumer Price Index (CPI) means the consumer price index for California as reported by the Department of Industrial Relations based on: B-1 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 2 (A) Urban population coverage (CPI-U); (B) California Area Coverage; (C) Series Title “All Items;” (D) Index Base Period “1982-1984=100;” and (E) Reference Period “Annual Average” for All Urban Consumers. (4) DOWNFLOW FURNACE means a condensing Condensing or non- condensingNon-Condensing furnace Furnace installed in a configuration in which the furnace takes in cool air from the top, warms it, then releases the warm air through the ductwork below. (5) DUAL FUEL SYSTEM is a heating, ventilation, and air conditioning system utilizing a HEAT PUMP as the primary source of heating and cooling with a FAN-TYPE CENTRAL FURNACE serving as auxiliary heating. (5) EXISTING BUILDING means a building that is not a New Building as defined in this rule. (6) FAN-TYPE CENTRAL FURNACE is a self-contained space heater using natural gas, or any fan-type central furnace that is in natural gas-firing mode, providing for circulation of heated air at pressures other than atmospheric through ducts more than 10 inches in length that have: (A) a 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. (6) FLOOR FURNACE means a self-contained, floor-mounted, NOx emitting space heater using natural gas without ducts that has a Rated Heat Input Capacity at or less than 175,000 Btu per hour. (7) FURNACE means any Residential Fan-Type Central Furnace, Wall Furnace, or Floor Furnace, as defined in this rule. (8) HEAT INPUT means the higher heating value of the fuel to the furnace measured as BTU per hour. means the chemical heat released due to assumed complete combustion of fuel to a Furnace, using the higher heating value of the fuel. This does not include the sensible heat of incoming combustion air. (9) HEAT PUMP means an all-electric device that utilizes condensation and evaporation of refrigerant to absorb and release heat for heating, ventilation, and air conditioning applications. B-2 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 3 (10) HIGH-ALTITUDE means an elevation at or above 4,200 feet above sea level. (11) INFORMATIVE MATERIALS means consumer brochures and technical specification sheets for the Furnace and manufacturer’s website that promotes, discusses, or lists the Furnace. (12) INSTALL means the action of an Installer to place a Furnace in a position ready for use. (13) INSTALLER means a person who Installs a Furnace and is required to obtain a license issued by the Department of Consumer Affairs Contractors State License Board for a classification related to buildings and appliances. (14) MASTER-METERED MOBILE HOME PARK means a Mobile Home park that takes electricity through a master meter and then distributes it to park residents through the Mobile Home park’s system. (915) MOBILE HOME means a prefabricated structure on a permanently attached chassis.structure, transportable in one or more sections, that is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities. (1016) MOBILE HOME FURNACE means a Residential Fan-Type Central furnace Furnace designed specifically and solely for installation to heat a mobile home. (17) NEW BUILDING means a building that is newly constructed or a building with a major alteration which changes the occupancy classification of a building, which means a change in the formal designation of the primary purpose of the building pursuant to 2022 Title 24 California Building Code Part 2 Chapter 3 for occupancy classification and use, or any subsequent version of the Building Code. For Mobile Homes, the newly constructed building includes installation of the Mobile Home onto the property of residence. (18) NON-CONDENSING FURNACE means a standard Residential Fan-Type Central Furnace that is not a Condensing Furnace, Weatherized Furnace, or Mobile Home Furnace. (1119) NOx EMISSIONS means the sum of nitrogen nitric oxide and nitrogen dioxide (oxides of nitrogen) in the flue gas collectively emitted; calculated and expressed as nitrogen dioxide. (1220) RATED HEAT INPUT CAPACITY means the gross HEAT INPUTHeat Input of the combustion device, as supported by required documentation. B-3 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 4 (21) RESELLER means anyone who sells Furnace(s) either retail, wholesale, or on an individual basis. (22) RESIDENTIAL FAN-TYPE CENTRAL FURNACE is a self-contained natural gas-fired space heater, or any fan-type central Furnace that is in natural gas-firing mode and emits NOx, providing for circulation of heated air at pressures other than atmospheric through ducts more than 10 inches in length that has: (A) A Rated Heat Input Capacity 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. (1323) 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. (14) 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. (1524) USEFUL HEAT DELIVERED TO THE HEATED SPACE is the AFUE (expressed as a fraction) multiplied by the heat input. (16) 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. (25) WALL FURNACE means a wall-mounted, self-contained NOx emitting space heater using natural gas without ducts that exceed 10 inches that has a Rated Heat Input Capacity less than 175,000 Btu per hour. (1726) WEATHERIZED means a Residential Fan-Type Central Furnace designed for installation outside of a building, equipped with a protective jacket and integral venting, and labeled for outdoor installation. (27) ZERO-NOx EMISSION UNIT means an appliance that provides space heating with heating capacity equivalent to, or sized to replace, Furnaces subjected to this rule and emits no more than zero nanograms of NOx per joule of Useful Heat Delivered To The Heated Space (ng/J). B-4 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 5 (cd) Requirements (1) A manufacturer shall not, after January 1, 1984, manufacture or supply for sale or use in the South Coast AQMD fan-type central furnaces, unless such furnaces meet the requirements of paragraph (c)(3). (2) A person shall not, after April 2, 1984, sell or offer for sale within the South Coast AQMD fan-type central furnaces unless such furnaces meet the requirements of paragraph (c)(3). (3) 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 subdivision (d) of this rule. (41) On or after October 1, 2012A person shall not manufacture, supply, sell, resell, offer for sale, import, or installInstall, for use within the South Coast AQMD, fan-type central furnaces subject to this rule any of the Furnaces listed in Table 1, unless such furnaceFurnace complies with is certified pursuant to subdivision (e) not to exceed the applicable Table 1 emission limit and compliance date set forth in Table 1 and is certified in accordance with subdivision (d) of this rule., expressed by nanograms of NOx per joule of Useful Heat Delivered to the Heated Space (ng/J): Table 1 – Furnace NOx Limits and Compliance Schedule Compliance Date Equipment Category NOx Emission Limit (nanograms/Joule *) October 1, 2012 Mobile Home Furnace 40 April 1, 2015 Condensing Furnace 14 October 1, 2015 Non-condensing Furnace 14 October 1, 2016 Weatherized Furnace 14 October 1, 2018 Mobile Home Furnace 14 B-5 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 6 Table 1 – Residential Fan-Type Central Furnace NOx Limits Equipment Category NOx Emission Limit (ng/J ) Condensing Furnace 14 Non-Condensing Furnace 14 Weatherized Furnace 14 Mobile Home Furnace 14 (2) On and after the applicable Table 2 compliance date, a person shall only manufacture, supply, sell, resell, offer for sale, import, or Install, for use in the South Coast AQMD, a Zero-NOx Emission Unit, that emits zero ng/J of NOx, in place of a Furnace according to the Table 2 compliance schedule for each Furnace equipment category, unless the Furnace is included in the zero-NOx emission manufacturer alternative compliance option pursuant to paragraph (f)(2) as indicated in the Informative Materials for the Furnaces pursuant to subparagraph (g)(1)(C). The applicable Table 2 compliance dates for New Building types shall be determined based on the construction or alteration completion date. Table 2 – Zero-NOx Emission Limit Compliance Schedule Equipment Category Building Type Compliance Date Residential Fan-Type Central Furnace1 New January 1, 2027 Existing January 1, 2029 Mobile Home Furnace New January 1, 2027 Wall Furnace and Floor Furnace New January 1, 2027 Existing January 1, 2029 1 Includes Condensing, Non-Condensing, and Weatherized Furnaces. (5) Any manufacturer of fan-type central furnaces regulated by this rule may elect to pay a per unit mitigation fee in lieu of meeting the 14 nanogram/Joule NOx emission limit in Table 1 of paragraph (c)(4) of this rule, provided the manufacturer complies with the following requirements: (A) Prior to the phase one mitigation fee start date specified in Table 2, pays a per unit mitigation fee of $200 for each condensing furnace B-6 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 7 and $150 for each other type of furnace distributed or sold into the South Coast AQMD, disregarding the furnace size. (B) On and after the phase one mitigation fee start date but no later than the mitigation fee option end date specified in Table 2, pays a per unit phase one or phase two mitigation fee for each condensing, non- condensing, weatherized or mobile home furnace according to Table 2. Table 2 – Alternate Compliance Plan with the Phase One and Phase Two Mitigation Fee Schedules Furnace Phase One Mitigation Fee Phase Two Mitigation Fee Phase Two Mitigation Fee Option End Date Size Range Furnace Category Phase One Mitigation Fee Start Date Phase One Mitigation Fee ($/Unit) Phase Two Mitigation Fee Start Date Phase Two Mitigation Fee ($/Unit) ≤ 60,000 BTU/hr Condensing May 1, 2018 $275 October 1, 2018 $350 September 30, 2019 Non- condensing October 1, 2018 $225 April 1, 2019 $300 September 30, 2019 Weatherized October 1, 2018 $225 April 1, 2019 $300 September 30, 2021 Mobile Home October 1, 2018 $150 April 1, 2019 $150 September 30, 2025 > 60,000 Btu/hr and ≤ 90,000 BTU/hr Condensing May 1, 2018 $300 October 1, 2018 $400 September 30, 2019 Non- condensing October 1, 2018 $250 April 1, 2019 $350 September 30, 2019 Weatherized October 1, 2018 $250 April 1, 2019 $350 September 30, 2021 Mobile Home October 1, 2018 $150 April 1, 2019 $150 September 30, 2025 > 90,000 BTU/hr Condensing May 1, 2018 $325 October 1, 2018 $450 September 30, 2019 Non- condensing October 1, 2018 $275 April 1, 2019 $400 September 30, 2019 Weatherized October 1, 2018 $275 April 1, 2019 $400 September 30, 2021 Mobile Home October 1, 2018 $150 April 1, 2019 $150 September 30, 2025 (C) Submits an alternate compliance plan for each 12-month time period after the applicable Table 1 compliance date during which the manufacturer elects to pay the mitigation fee in lieu of meeting the NOx emission limit. B-7 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 8 (D) Submits to the South Coast AQMD an alternate compliance plan no later than 60 days prior to the applicable compliance date, or no later than March 16, 2018 for the condensing furnace compliance plan starting on April 1, 2018, which includes the following: (i) a letter with the name of the manufacturer requesting the mitigation fee compliance option signed by a responsible official identifying the category of fan-type central furnaces and the 12 month alternate compliance period that the mitigation fees cover; (ii) an estimate of the quantity of applicable Rule 1111 fan-type central furnaces to be distributed or sold into the South Coast AQMD during the alternate compliance period, which estimate shall be based on total distribution and sales records or invoices of weatherized or mobile home fan-type central furnaces that were distributed or sold into the South Coast AQMD during the 12 month period of July 1 to June 30 prior to the applicable compliance date, along with supporting documentation; (iii) a completed South Coast AQMD Form 400A with company name, identification that application is for an alternate compliance plan (section 7 of form), identification that the request is for the Rule 1111 mitigation fee compliance option (section 9 of form), and signature of the responsible official; (iv) a check for payment of the alternate compliance plan filing fee (Rule 306, subdivision (c)). (E) Submits to the Executive Officer a report signed by the responsible official for the manufacturer identifying by model number the quantity of Rule 1111 fan-type central furnaces actually distributed or sold into South Coast AQMD and a check for payment of mitigation fees for the applicable 12 month alternate compliance period for the quantity of applicable Rule 1111 fan-type central furnaces distributed or sold into the South Coast AQMD during the alternate compliance period. The report and the payment of mitigation fees must be submitted to the South Coast AQMD no B-8 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 9 later than thirty (30) days after the end of each 12-month mitigation fee alternate compliance period. (F) Notwithstanding the requirements set forth in subparagraph (c)(5)(E), during the phase one period specified in Table 2, submits a report signed by the responsible official for the manufacturer identifying by model number the quantity of Rule 1111 fan-type central furnaces actually distributed or sold into South Coast AQMD and a check for payment of mitigation fees for the phase one period no later than thirty (30) days after the end of the phase one period. The 12-month compliance plan payment as specified in subparagraph (c)(5)(E) that includes this phase one period shall be reconciled so as not to include the phase one payment. (G) For the last and remaining 6-month period of the condensing furnace final alternate compliance plan ending on September 30, 2019, specified in Table 2, submits a report signed by the responsible official for the manufacturer identifying by model number the quantity of Rule 1111 fan-type central furnaces - condensing furnaces actually distributed or sold into South Coast AQMD and a check for payment of mitigation fees to the South Coast AQMD no later than October 30, 2019. (de) Certification (1) The manufacturer shall have each appliance Furnace model that is required to be certified to meet Table 1 emission limits tested in accordance with the following: (A) Oxides of nitrogenNOx measurements, test equipment, and other required test procedures shall be in accordance with South Coast AQMD Method 100.1.; and (B) Operation of the furnace Furnace shall be in accordance with the procedures specified in: (i) Section 4.0 of Code of Federal Regulations, Title 10, Part 430, Subpart B, Appendix N.; or (ii) South Coast AQMD Rule 1111 Nitrogen Oxides Emissions Compliance Testing for Natural Gas-Fired, Fan-Type Central Furnaces certification protocol. B-9 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 10 (2) One of the two formulas shown below Equation 1 or 2 shall be used to determine the nanograms of oxides of nitrogenNOx per joule of useful heat delivered to the heated space:Useful Heat Delivered to the Heated Space: N = 4.566 x 104 x P x U, (Eq. 1) H x C x E N = 3.655 x 1010 x P (Eq. 2) (20.9-Y) x Z x E Where: N = nanograms ng/J of emitted oxides of nitrogenNOx per joule of useful heat. P = concentration (parts per million byppm volume) of oxides of nitrogen NOx in flue gas as tested. U = volume percent carbon dioxide (CO2) in water-free flue gas for stoichiometric combustion. H = gross heating value of fuel, BTU/cu.ft. Btu/ft3 (60oF, 30-in. Hg). C = measured volume percent of CO2 in water-free flue gas, assuming complete combustion and no carbon monoxide CO present. E = AFUE, percent. Y = volume percent of oxygen O2 in flue gas. Z = heating value of gas, joules/cu. meter J/m3 (0.0oC, 1 ATM standard atmosphere). (3) Prior to the date a furnace model is first shipped to a location in the South Coast AQMD for use in the South Coast AQMD, the manufacturer shall obtain Executive Officer’s approval for the emission test protocol and emission test results verifying compliance with the applicable NOx limit specified in Table 1, submitting the followingWhen applying for certification of Furnaces, the manufacturer shall submit to the Executive Officer the following: (A) A statement that indicating the model is in compliance with subdivision (c)(d) that is (The statement shall be signed and dated by a responsible official Responsible Official, and dated, and shall attesting to the accuracy of all statements.); (B) General Information, including: (i) Name and address of manufacturer.; B-10 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 11 (ii) Brand name; and. (iii) Model number, as it appears on the furnace Furnace rating plate.; (C) A description of the furnace Furnace and specifications for each model being certified.; and (D) A source test report verifying compliance with the emission limits in subdivision (d) for each model to be certified. The source test report shall contain all the elements identified in the procedures specified in (e)(2) for each unit tested. (4) When applying for certification of Furnaces, the manufacturer shall submit the items identified in paragraph (e)(3) no more than 180 days after the date of the source test identified in subparagraph (e)(3)(D). (e) Identification of Compliant Units (1) The manufacturer of the furnace complying with subdivisions (c) and (d) shall display the following on the shipping container label and rating plate of the furnace: (A) Model number; (B) Heat input capacity; (C) Applicable NOx emission limit in Table 1; and (D) Date of manufacture or date code. (2) Any non-certified furnace shipped to a location in the South Coast AQMD for distribution or sale outside of the South Coast AQMD shall have a label on the shipping container identifying the furnace as not certified for use in the South Coast AQMD. (3) Consumer Notification Requirement (A) For the purposes of subparagraph (e)(3)(B), “Informative Materials” shall mean the following: (i) The consumer brochure for the furnace; (ii) The technical specification sheet for the furnace; and (iii) The manufacturer’s website that promotes, discusses, or lists the furnace. (B) Effective October 1, 2018, for any furnace that is for distribution or sale inside of the South Coast that is using an alternate compliance plan in lieu of meeting the 14 ng/J certification limit, a manufacturer shall only distribute or publish Informative Materials that clearly B-11 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 12 display the following language: “If installed in South Coast AQMD only: This furnace does not meet the South Coast AQMD Rule 1111 NOx emission limit (14 ng/J), and thus is subject to a mitigation fee of up to $450. This furnace is not eligible for the Clean Air Furnace Rebate Program: www.CleanAirFurnaceRebate.com.” (C) A manufacturer may use alternative language in lieu of subparagraph (e)(3)(B), provided the alternative language is: (i) Similar to the language in subparagraph (e)(3)(B); (ii) Submitted to the Executive Officer by August 1, 2018; and (iii) Approved by the Executive Officer no later than August 31, 2018. The manufacturer shall use the language in subparagraph (e)(3)(B) if the alternative language is not approved. (f) Alternative Compliance Options (1) Mitigation Fee Alternative Compliance Option for Mobile Home Furnaces A manufacturer of Mobile Home Furnaces may elect to pay a per unit mitigation fee for selling or enabling distributors, retailers, Resellers, or Installers to sell Mobile Home Furnaces certified to emit 40 ng/J of NOx in lieu of complying with the 14 ng/J NOx emission limit in Table 1, provided the manufacturer complies with the following requirements: (A) Pays a per unit mitigation fee of: (i) Until September 30, 2025, $150 for each Mobile Home Furnace distributed or sold into or within the South Coast AQMD; and (ii) On and after October 1, 2025, $100 for each Mobile Home Furnace distributed or sold into or within the South Coast AQMD; (B) Submits an alternative compliance plan, no later than 60 days prior to each 12-month compliance period that begins on October 1st during which the manufacturer elects to pay the mitigation fee in lieu of meeting the NOx emission limit that includes: (i) A letter with the name of the manufacturer requesting the Mobile Home mitigation fee compliance option signed by a Responsible Official and the 12-month alternative compliance period that the mitigation fees cover; B-12 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 13 (ii) An estimate of the quantity of applicable Mobile Home Furnace to be distributed or sold into or within the South Coast AQMD during the alternative compliance period, which estimate shall be based on total distribution and sales records or invoices of Mobile Home Furnaces that were distributed or sold into or within the South Coast AQMD during the 12- month period of July 1 to June 30 prior to the applicable compliance date, along with supporting documentation; (iii) A complete South Coast AQMD Form 400A with company name, identification that application is for an alternative compliance plan (section 7 of form), identification that the request is for the Rule 1111 mitigation fee compliance option (section 9 of form), and signature of the Responsible Official; and (iv) Payment for the alternative compliance plan filing fee pursuant to Rule 306– Plan Fees; (C) Submits to the Executive Officer a report signed by the Responsible Official for the manufacturer, no later than 90 days after the end of each 12-month mitigation fee alternative compliance period, that shall for the applicable 12-month alternative compliance period: (i) Identify each model number and the quantity of Mobile Home Furnaces distributed or sold into or within South Coast AQMD; and (ii) Include the payment of mitigation fees. (2) Zero-NOx Emission Manufacturer (ZEM) Alternative Compliance Option Any manufacturer of Furnaces, other than Mobile Home Furnaces, subject to this rule may elect to comply with the ZEM alternative compliance option in lieu of complying with paragraph (d)(2) provided: (A) The manufacturer submits an alternative compliance plan, no later than November 1, 2026, or no later than 60 days prior to any sales into or within the South Coast AQMD for a new manufacturer, which is a manufacturer who does not have any sales into or within the South Coast AQMD as of October 31, 2026, that includes: B-13 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 14 (i) A letter with the name of the manufacturer requesting the ZEM alternative compliance option signed by a Responsible Official; (ii) A complete South Coast AQMD Form 400A with company name, indicating the application is for a compliance plan (section 7 of form), indicating the request is for the “Rule 1111 ZEM alternative compliance option” (section 9 of form), and signature of the Responsible Official; and (iii) Payment for the alternative compliance plan filing fee pursuant to Rule 306– Plan Fees; (B) The manufacturer sells, or enables distributors, retailers, Resellers, or Installers to sell, Zero-NOx Emission Units into or within the South Coast AQMD: (i) At a percentage greater than or equal to the Zero-NOx Emission Unit sales target specified in Table 3 and pays the mitigation fee in subparagraph (f)(2)(F); or (ii) At a percentage less than the Zero-NOx Emission Unit sales target specified in Table 3 and pays the mitigation fee in paragraph (f)(3)(A); (C) Zero-NOx Emission Unit sales percentage is calculated by Equation 3. For determining the number of Zero-NOx Emission Units sold in a calendar year into or within the South Coast AQMD: (i) Each Zero-NOx Emission Unit that utilizes ductwork to distribute heated air through the home shall be counted as one Zero-NOx Emission Unit; (ii) Each Zero-NOx Emission Unit that does not utilize ductwork to distribute heated air through the home, e.g., a mini-split, shall be counted as half of a Zero-NOx Emission Unit; (iii) Each Zero-NOx Emission Unit that does not utilize ductwork to distribute heated air through the homes but is a multiple zone system with multiple indoor units for one outdoor unit, e.g., a multi-split, only the outdoor unit shall be counted as one Zero-NOx Emission Unit; and (iv) A zero-NOx emission space heating appliance that is portable or has a Rated Heat Input Capacity less than 5,500 B-14 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 15 Btu per hour shall not be counted as a Zero-NOx Emission Unit; Zero‑NOx Emission Unit Sales Percentatge = (Z) (Z +N)× 100 (Eq. 3) Where: Z = Number of Zero-NOx Emission Units sold in a compliance year N= Number of Furnaces sold in a compliance year (D) Furnace sales percentage is calculated by Equation 4; Furnace Sales Percentatge =100 −Zero‑NOx Emission Unit Sales Percentage (Eq. 4) (E) The Furnaces sold under this alternative compliance option are: (i) Residential Fan-Type Central Furnaces certified to emit 14 ng/J or less of NOx; or (ii) Wall or Floor Furnaces; (F) The manufacturer pays the following mitigation fee for each Furnace sold within the Furnace sales target for the applicable calendar year in Table 3: (i) $100 for the calendar year 2027; (ii) $100 adjusted by the CPI annual percent increase for each subsequent calendar year after 2027; and (iii) If the CPI annual percent increase for a calendar year is greater than three percent, a three percent increase will apply to that year in lieu of the CPI annual percent increase; (G) The manufacturer submits a report and mitigation fee payment pursuant to paragraph (g)(2) no later than 90 days after the end of each calendar year utilizing this alternative compliance option; and (H) The manufacturer complies with the Informative Material requirements pursuant to paragraph (g)(1). B-15 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 16 Table 3 – ZEM Alternative Compliance Option Targets Compliance phase Phase 1 Phase 2 Phase 3 Phase 4 Calendar Years 2027 - 2028 2029 - 2032 2033-2035 2036 and after Zero-NOx Emission Unit Sales Target 30 percent 50 percent 75 percent 90 percent Furnace Sales Target 70 percent 50 percent 25 percent 10 percent (3) ZEM Alternative Compliance Option Sales Target Deviation Any manufacturer of Furnaces subject to this rule that elects to comply with the ZEM Alternative Compliance Option pursuant to paragraph (f)(2) that deviates from the applicable Sales Targets in Table 3 shall: (A) If the annual Furnaces sales percentage is greater than the applicable calendar year Furnace sales target specified in Table 3, pay the following mitigation fee for each Furnace sold above the sales target: (i) $500 for the calendar year 2027; (ii) $500 adjusted by the CPI annual percent increase for each subsequent calendar year after 2027; and (iii) If the CPI annual percent increase for a calendar year is greater than three percent, a three percent increase will apply to that year in lieu of the CPI annual percent increase; and (B) If the annual Zero-NOx Emission Units sales percentage is greater than the applicable calendar year Zero-NOx Emission Unit sales target specified in Table 3, apply a discount to their annual mitigation fee required pursuant to subparagraph (f)(2)(F) according to Equation 5: Discounted Mitigation Fee =F −F × (P −T) (100 −T) (Eq. 5) Where: F = Annual Mitigation Fee pursuant to subparagraph (f)(2)(F) P = Reported Percent Zero-NOx Emission Units T = Zero-NOx Emission Unit Sales Target. B-16 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 17 (g) Informative Materials, Labeling, Recordkeeping, and Reporting (1) Informative Materials for Furnaces (A) Effective [90 days after Date of Rule Adoption], for any Mobile Home Furnace that is for distribution or sale inside of the South Coast AQMD that is using an alternative compliance plan in lieu of meeting the 14 ng/J certification limit, a manufacturer shall distribute or publish Informative Materials that clearly display the following language: “If installed in South Coast AQMD only: This furnace is only allowed to be installed and used for mobile homes; subject to a mitigation fee of $150 before September 30, 2025, and $100 thereafter; and only allowed to be installed and used for existing mobile homes or any mobile homes in a Master-Metered Mobile Home Park on and after January 1, 2027.”; (B) For any Furnace that is for distribution or sale inside of the South Coast AQMD for installation at High-Altitude in a downflow configuration pursuant to paragraph (h)(3) shall distribute or publish Informative Materials that clearly display the following language: “This furnace must be installed only as a replacement in a downflow configuration at or above 4,200 feet above sea level in the South Coast AQMD. Installation of this furnace for new construction, in any other configuration, or at a lower elevation will be a violation of South Coast AQMD Rule 1111."; (C) For any Furnace sold under the ZEM Alternative Compliance Option pursuant to paragraph (f)(2) in lieu of complying with paragraph (d)(2), a manufacturer shall distribute or publish Informative Materials that clearly display the following language: “If installed in South Coast AQMD only: This furnace is sold under an alternative compliance option and manufacturer is subject to compliance goals and associated mitigation fee.”; and (D) A manufacturer may request the use of alternative language in lieu of subparagraph (g)(1)(A), (g)(1)(B), or (g)(1)(C), provided: (i) The alternative language is similar to the language in subparagraphs (g)(1)(A), (g)(1)(B), or (g)(1)(C); and (ii) If the alternative language is not approved by the Executive Officer, the manufacturer shall use the language in subparagraphs (g)(1)(A), (g)(1)(B), or (g)(1)(C). B-17 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 18 (2) Reporting and Recordkeeping Requirements for ZEM Alternative Compliance Option The manufacturer of a Furnace supplied or offered for use within the South Coast AQMD in accordance with the ZEM alternative compliance option in paragraph (f)(2) shall: (A) Submit a report to the Executive Officer, signed by the Responsible Official for the manufacturer pursuant to the schedule in paragraph (f)(2)(G), that includes: (i) For Zero-NOx Emission Units: (A) Brand name and model numbers; (B) For Zero-NOx Emission Units with both outdoor and indoor units, only brand name and model numbers for the outdoor units; (C) Zero-NOx Emission Unit type described in subparagraph (f)(2)(C); and (D) Quantity of Zero-NOx Emission Units distributed or sold into or within the South Coast AQMD for the applicable calendar year; and (ii) For Furnaces: (A) Brand name and model numbers; (B) Furnace description; and (C) Quantity of Furnaces distributed or sold into or within South Coast AQMD for the applicable calendar year that are subject to the ZEM alternative compliance option; and (B) Maintain records for at least five years, including, but not limited to, the following information and make them available to the Executive Officer upon request: (i) All information specified by subparagraph (g)(2)(A); (ii) Serial number of each Furnace and Zero-NOx Emission Units sold; (iii) Date and number of Furnaces and Zero-NOx Emission Units sold to a distributor; and (iv) Each distributor’s name, address, and phone number. B-18 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 19 (3) Labeling and Recordkeeping Requirements for Propane Conversion Kits If the manufacturer, distributor, Reseller, or Installer of any Furnace elects to comply pursuant to the exemption in paragraph (h)(1): (A) The shipping carton or the name plate of the Furnace shall clearly display: "This furnace is to be installed for propane firing only. Operating in natural gas mode is in violation of the South Coast AQMD Rule 1111"; and (B) The manufacturer shall submit a report by March 1st of the following calendar year to the Executive Officer, which includes, but not limited to: (i) The quantity of propane conversion kits for Furnaces distributed or sold for use into South Coast AQMD for the applicable compliance plan period; and (ii) The quantity of propane conversion kits for Furnaces distributed or sold for use into the South Coast AQMD during the 12 month period of July 1 to June 30 prior to the applicable compliance date. (4) New and Existing Building Labeling Requirements For any Furnace , except Mobile Home Furnace, that is supplied or offered for sale for use in the South Coast AQMD, and that is not electing to comply with paragraph (f)(2) for ZEM alternative compliance option during the period of January 1, 2027 to January 1, 2029, the manufacturer of the Furnace shall clearly display on the shipping container, or the name plate of the Furnace, the following: (A) The statement: “If Installed in South Coast AQMD: 1) After January 1, 2027, this furnace shall not be sold for installation in new buildings; and 2) After January 1, 2029, not compliant for use and installation in South Coast AQMD.”; (B) A manufacturer may use alternative language in lieu of subparagraph (g)(4)(A), provided: (i) The alternative language is similar to the language in subparagraph (g)(4)(A); and (ii) If the alternative language is not approved by the Executive Officer, the manufacturer shall use the language in subparagraph (g)(4)(A). B-19 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 20 (5) The manufacturer of any Furnace manufactured for sale in the South Coast AQMD shall clearly display on the shipping container and the name plate of the Furnace: (A) Model number; (B) Rated Heat Input Capacity; (C) Applicable NOx emission limit in Table 1; and (D) Date of manufacture or date code. (6) Any non-certified Furnace shipped to a location in the South Coast AQMD for distribution or sale outside of the South Coast AQMD shall have a label on the shipping container identifying the Furnace as not certified for use in the South Coast AQMD. (f) Enforcement The Executive Officer may periodically conduct such tests as are deemed necessary to ensure compliance with subdivisions (c), (d), and (e). (gh) Exemptions (1) The provisions of this rule shall not apply to furnaces installed in mobile homes before October 1, 2012. (2) For furnaces manufactured, purchased, and delivered to the South Coast AQMD 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 South Coast AQMD, so long as the furnace meets the requirements of paragraph (c)(3) and subdivisions (d) and (e). (3) For furnaces that have been encumbered in a contractual agreement, signed prior to January 1, 2018, by a furnace manufacturer or distributor for future or planned construction, the manufacturer shall be allowed to sell the units within the South Coast AQMD at the mitigation fee specified in subparagraph (c)(5)(A), provided: (A) An application for exemption is submitted to the Executive Officer prior to April 2, 2018; (B) The total quantity of furnaces in application(s) by any one manufacturer does not exceed 15 percent of furnaces distributed and sold in the previous compliance plan period; (C) Those furnaces are sold no later than their mitigation fee option end dates specified in Table 2; and B-20 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 21 (D) The following documents and information are provided to the Executive Officer, including but not limited to: (i) contractual agreement for the units sold or to be sold in the South Coast AQMD; (ii) quantity, model number, and serial number of the subject units; (iii) contract execution date; and (iv) name(s) of the contractor (s). (E) Failure to comply with the requirements specified in subparagraphs (g)(3)(A) through (g)(3)(D) shall result in the requirement to paying or retroactively paying the corresponding mitigation fee specified in paragraph (c)(5) within 30 days upon notification from the Executive Officer. (41) The manufacturer of any natural gas furnace Furnace that is not certified to meet the 14 ng/J of NOx emission limit and is to be installed with a propane conversion kit for propane firing only in the South Coast AQMD, is exempt from subdivisions (c)(d) and (d)(e), provided the manufacturer complies with the labeling and reporting requirements in paragraph (g)(3).: (A) Effective June 1, 2018, the shipping carton or the name plate of the furnace clearly displays: "This furnace is to be installed for propane firing only. Operating in natural gas mode is in violation of the South Coast AQMD Rule 1111." (B) The following documents and information shall be provided to the Executive Officer, accompanying the compliance plan report specified in subparagraphs (c)(5)(E), (c)(5)(F), and (c)(5)(G), including but not limited to: (i) The quantity of propane conversion kits for furnaces actually distributed or sold into South Coast AQMD for the applicable compliance plan period; (ii) The quantity of propane conversion kits for furnaces distributed or sold into the South Coast AQMD during the 12 month period of July 1 to June 30 prior to the applicable compliance date; and (iii) Photographic evidence of the required language set forth in subparagraph (g)(4)(A) as it appears on the carton or unit, including all versions utilized by the manufacturer, for B-21 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 22 approval by the Executive Officer. The photographs must be sufficient to verify the wording is correct and that it is “clearly visible,” taking into account the font type, size, color, and location on the carton or unit. (C) The manufacturer of this type of unit which has been installed in the South Coast AQMD without meeting above requirements shall be in violation of South Coast AQMD Rule 1111. (2) Paragraph (d)(2) shall not apply to the following Furnaces: (A) Mobile Home Furnaces in compliance with paragraph (d)(1) for installation in Existing Buildings; (B) Mobile Home Furnaces in compliance with paragraph (d)(1) for installation or use in New Buildings or Existing Buildings located in Master-Metered Mobile Home Parks; and (C) Furnaces in compliance with paragraph (d)(1) that will be installed or used in New Buildings with building permit issued prior to [Date of Adoption] by the appropriate enforcement agency. (5) Condensing or non-condensing furnaces that are certified to meet the 40 ng/J NOx limit and are installed at or above 4,200 feet above sea level are exempt from paragraph (c)(4), if that unit is installed on or before March 31, 2022. (36) Effective April 1, 2022, downflow furnaces Downflow Furnace rated less than 175,000 BTU per hour in heat input capacity and condensing or non- condensing furnaces with rated heat input at or greater than 100,000 BTU per hour, either of which are installed at elevations at or above 4,200 feet above sea level High Altitude as a replacement for an existing furnace Furnaces are exempt from paragraphs (c)(4)(d)(1) and (d)(2), provided that: (A) The downflow furnace Downflow Furnaces areis certified to meet the 40 ng/J NOx limit, is replacing an existing furnaceFurnace;, and the shipping carton or name plate of the furnace clearly displays: "This furnace must be installed only as a replacement in a downflow configuration at or above 4,200 feet above sea level in the South Coast AQMD. Installation of this furnace for new construction, in any other configuration, or at a lower elevation will be a violation of South Coast AQMD Rule 1111."; or (B) Manufacturers of the Downflow Furnaces comply with paragraph (g)(1)(B) for Informative Material requirement. The condensing or B-22 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 23 non-condensing furnace rated at or greater than 100,000 BTU per hour in heat input capacity is certified to meet 40 ng/J NOx limit, is replacing an existing furnace, and the shipping carton or name plate of the furnace clearly displays: “This furnace must be installed only as a replacement at or above 4,200 feet above sea level in the South Coast AQMD. Installation of this furnace for new construction or at a lower elevation will be a violation of South Coast AQMD Rule 1111." (7) Effective April 1, 2022 and until September 30, 2022, a manufacturer, distributor, or installer that manufactures, supplies, sells, offers for sale, or installs a natural gas furnace certified to meet 40 ng/J of NOx that is installed and operated as part of a dual fuel system at or above 4,200 feet above sea level in the South Coast AQMD, shall only install such a unit that: (A) Is designed by the manufacturer with a system switchover point between heat pump and furnace at the external temperature of 32℉ with a nonadjustable system that would prevent any person from changing the external ambient switchover temperature of 32℉; (B) Includes installation of an external temperature sensor which acts as the sole method to determine switchover point; (C) For systems equipped with condensing, noncondensing, or mobile home furnaces, includes communicating technology between the heat pump and furnace installed at the point of manufacture to prevent system operation without a heat pump and requires operations of only the heat pump at and above the switchover temperature outlined in (g)(7)(A); and (D) The shipping carton or the name plate of the furnace clearly displays: "This furnace must be installed only in a dual fuel configuration with an electric heat pump. Installation of this furnace without a heat pump in a dual fuel configuration will be a violation of South Coast AQMD Rule 1111." (8) The manufacturer of any furnace that elects to use the exemption in paragraph (g)(4), (g)(5), (g)(6), or (g)(7) shall record the following information and shall make this information available upon request to the Executive Officer: (A) Sales date to distributor; B-23 Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 24 (B) Distributor’s name and full contact information (address and phone number); (C) Model number of the furnace and heat pump (if applicable); and (D) Serial number of the furnace and heat pump (if applicable). (9) The distributor that elects to use the exemption in paragraph (g)(4), (g)(5), (g)(6), or (g)(7) shall record the following information and shall make this information available upon request to the Executive Officer: (A) Sales date to installer; (B) Installer’s name and full contact information (address and phone number); (C) Model number of the furnace and heat pump (if applicable); and (D) Serial number of the furnace and heat pump (if applicable). (10) The installer that elects to use the exemption in paragraph (g)(4), (g)(5), (g)(6), or (g)(7) shall record the following information and shall make this information available upon request to the Executive Officer: (A) Installation date; (B) Address of furnace installation; (C) Model number of the furnace and heat pump (if applicable); and (D) Serial number of the furnace and heat pump (if applicable). B-24 Draft Proposed Amended Rule 1121 (Adopted December 1, 1978)(Amended March 10, 1995)(Amended December 10, 1999) (Amended September 3, 2004)(Amended [Date of Rule Adoption]) PROPOSED AMENDED RULE 1121. CONTROL OF NITROGEN OXIDES REDUCTION OF NOX EMISSIONS FROM RESIDENTIAL TYPE, NATURAL GAS- FIRED WATER HEATERS [RULE INDEX TO BE ADDED AFTER RULE ADOPTION] (a) Purpose The purpose of this rule is to reduce Oxides of Nitrogen (NOx) emissions from NOx- emitting Water Heaters as defined in this rule. (ab) Applicability This The provisions of this rule applies are applicable to manufacturers, distributors, retailers, Resellers, and installers Installers of natural gas-fired NOx-emitting water heaters Water Heaters, with heat input a Rated Heat Input Capacity rates less than 75,000 British thermal units (Btu) per hour. (bc) Definitions For the purpose of this rule: (1) BTU means British thermal unit or units. (2) DIRECT-VENT WATER HEATER means a water heater with air intake and exhaust ducts that use a gravity system to collect air from outside a building for combustion and exhaust combustion byproducts to the outside of a building. (1) Consumer Price Index (CPI) means the consumer price index for California as reported by the Department of Industrial Relations based on: (A) Urban population coverage (CPI-U); (B) California Area Coverage; (C) Series Title “All Items”; (D) Index Base Period “1982-1984=100”; and (E) Reference Period “Annual Average” for All Urban Consumers. (2) EXISTING BUILDING means a building that is not a New Building as defined in this rule. (3) HEAT INPUT means the heat of combustion released by fuels burned in a unit based on the higher heating value of fuel. the chemical heat released due to assumed complete combustion of fuel to a Water Heater, using the higher heating value of C-1 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 2 the fuel. This does not include the enthalpy sensible heat of incoming combustion air. (4) HEAT OUTPUT means the product Ho as defined in Section 9.3 of the Protocol.the enthalpy of the working fluid output of the Water Heater. (5) INDEPENDENT TESTING LABORATORY means a testing laboratory that meets the requirements of District the South Coast AQMD Rule 304 – Equipment, Materials, and Ambient Air Analyses, subdivision (k) and is approved by the District South Coast AQMD to conduct certification testing under the Protocol. (6) MITIGATION FEE is an emission reduction option, in which monies collected by the District from water heater manufacturers are placed in a restricted fund and are used to fund stationary and mobile source emission reduction programs targeted at equivalent NOx emission reductions as to those that would have otherwise occurred and have been approved by the District’s Governing Board. (6) INFORMATIVE MATERIALS means consumer brochure and technical specification sheet for the Water Heater and manufacturer’s website that promotes, discusses, or lists the Water Heater. (7) INSTALL means the action of an Installer to place a Water Heater in a position ready for use. (8) INSTALLER means a person who Installs a Water Heater and is required to obtain a license issued by the Department of Consumer Affairs Contractors State License Board for a classification related to buildings and appliances. (9) Master-Metered Mobile Home Park means a Mobile Home park that takes electricity through a master meter and then distributes it to park residents through the Mobile Home park’s system. (810) MOBILE HOME means a structure, transportable in one or more sections, that is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities. (711) MOBILE HOME WATER HEATER means a Water Heater closed vessel manufactured exclusively for mobile home Mobile Home use in which water is heated by combustion of gaseous fuel and is withdrawn for use external to the vessel at pressures not exceeding 160 psig, including the apparatus by which heat is generated and all controls and devices necessary to prevent water temperatures from exceeding 210ºF (99ºC). (12) NEW BUILDING means a building that is newly constructed , or a building with a major alteration which changes the occupancy classification of a building, which means a change in the formal designation of the primary purpose of the building C-2 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 3 pursuant to 2022 Title 24 California Building Code Part 2 Chapter 3 for occupancy classification and use, or any subsequent version of the Building Code. For Mobile Homes, the newly constructed building includes installation of the Mobile Home onto the property of residence. (813) NOx EMISSIONS means the sum of nitric oxide and nitrogen dioxide in the flue gas, collectively emitted; calculated and expressed as nitrogen dioxide. (14) PARTS PER MILLION BY VOLUME (ppmv) means, for the purpose of this rule, Parts Per Million by Volume of a pollutant at a three percent oxygen correction on a dry basis at Standard Conditions. (9) POWER-VENT WATER HEATER means a water heater with a blower installed to assist in the expulsion of exhaust gases. (10) POWER DIRECT-VENT WATER HEATER means a water heater with an air intake duct outside of a building with a blower installed to assist in the expulsion of exhaust gases. (1115) PROTOCOL means the most recent version of the South Coast Air Quality Management District AQMD Protocol to ensure standardization of compliance certification test procedures, titled: Nitrogen Oxides Emissions Compliance Testing for Natural Gas-Fired Water Heaters and Small Boilers, January 1998. (1216) RATED HEAT INPUT CAPACITY means the heat input capacity specified on the nameplate of the combustion unit. If the combustion unit has been altered or modified such that its maximum heat input is different from the heat input capacity specified on the nameplate, the new maximum heat input shall be considered as the rated heat input capacity.the gross Heat Input of the combustion device, as supported by required documentation. (1317) RECREATIONAL VEHICLE means either a motor home, travel trailer, truck camper, or camping trailer, with or without motive power, designed for human habitation for recreational, emergency, or other occupancy, as defined pursuant to Section 18010 of the California Health and Safety Code.any vehicle used for recreational purposes designed to include a Water Heater and licensed to be driven or moved on the highways of California. (18) RESELLER means anyone who sells Water Heater(s) either retail, wholesale, or on an individual basis. (19) 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 C-3 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 4 (B) For a partnership or sole proprietorship: general partner or proprietor, respectively. (20) STANDARD CONDITIONS are as defined by Rule 102 – Definition of Terms. (1421) WATER HEATER means a closed vessel other than a mobile home water heater in which water is heated by combustion of combusting natural gas, which emits NOx, and is withdrawn for use external to the vessel at pressures not exceeding 160 psig, including the apparatus by which heat is generated and all controls and devices necessary to prevent water temperatures from exceeding 210ºF (99ºC). (22) ZERO-NOx EMISSION UNITS means an appliance that provides water heating with heating capacity equivalent to, or sized to replace, Water Heaters subjected to this rule and emits no more than zero nanograms of NOx per joule of Heat Output (ng/J). (cd) Requirements (1) Until July 1, 2002, no person shall manufacture for sale, distribute, sell, offer for sale, or install within the South Coast Air Quality Management District any gas- fired water heaters unless the water heater is certified pursuant to subdivision (d) to a NOx emission level of less than or equal to: (A) 40 nanograms of NOx (calculated as NO2) per joule of heat output (93 lb per billion Btu of heat output); or (B) 55 ppmv at 3% O2, dry (71 lb per billion Btu of heat input). (2) On or after July 1, 2002, no person shall manufacture for sale, distribute, sell, offer for sale, or install within the South Coast Air Quality Management District any gas- fired water heaters unless the water heater is certified pursuant to subdivision (d) to a NOx emission level of less than or equal to: (A) 20 nanograms of NOx (calculated as NO2) per joule of heat output (46.5 lb per billion Btu of heat output); or (B) 30 ppmv at 3% O2, dry (35 lb per billion Btu of heat input); or (C) the emission limit specified in subparagraph (c)(1)(A) or (c)(1)(B) provided the manufacturer of the water heater meets the requirements of subdivision (e). (3) On or after January 1, 2006, for water heaters less than or equal to 50 gallon capacity, excluding direct-vent, power-vent and power direct-vent water heaters; on or after January 1, 2007 for water heaters greater than 50 gallon capacity, excluding direct-vent, power-vent and power direct-vent water heaters; and on and after January 1, 2008 for all direct-vent, power- vent, and power direct-vent water C-4 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 5 heaters; no person shall manufacture for sale, distribute, sell, offer for sale, or install within the South Coast Air Quality Management District any gas-fired water heaters unless the water heater is certified pursuant to subdivision (d) to a NOx emission level of less than or equal to: (A) 10 nanograms of NOx (calculated as NO2) per joule of heat output (23 lb per billion Btu of heat output); or (B) 15 ppmv at 3% O2, dry (17.5 lb per billion Btu of heat input). (4) On and after January 1, 2000, no person shall manufacture for sale, distribute, sell, offer for sale, or install within the South Coast Air Quality Management District any gas-fired mobile home water heaters unless the water heater is certified pursuant to subdivision (d) to a NOx emission level of less than or equal to: (A) 40 nanograms of NOx (calculated as NO2) per joule of heat output (93 lb per billion Btu of heat output); or (B) 55 ppmv at 3% O2, dry (71 lb per billion Btu of heat input). (5) The manufacturer of any water heater manufactured for sale in the district shall clearly display on the shipping carton and the name plate of the water heater: (A) the model number; (B) the date of manufacture; and (C) the certification status. (6) Notwithstanding the requirements in paragraph (c)(3), until July 1, 2006, any person may distribute, sell, offer for sale, or install any gas-fired water heaters less than or equal to 50 gallon capacity that are manufactured prior to January 1, 2006 and in compliance with paragraph (c)(2). (7) Notwithstanding the requirements in paragraph (c)(3), until July 1, 2007, any person may distribute, sell, offer for sale, or install gas-fired water heaters greater than 50 gallon capacity that are manufactured prior to January 1, 2007 and in compliance with paragraphs (c)(2). (8) Notwithstanding the requirements in paragraph (c)(3), until July 1, 2008, any person may distribute, sell, offer for sale, or install gas-fired direct- vent, power- vent, or power direct-vent water heaters that are manufactured prior to January 1, 2008 and in compliance with paragraphs (c)(2). (1) A person shall not manufacture, supply, sell, resell, offer for sale, import, or Install, for use in the South Coast AQMD, any of the Water Heaters listed in Table 1, unless the Water Heater is certified pursuant to subdivision (e) and does not exceed the applicable Table 1 NOx limit, expressed by nanograms of NOx per joule of Heat Output (ng/J) or ppmv. C-5 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 6 Table 1 – NOx Emission Limits Equipment NOx Emission Limits ng/J ppmv Water Heater1 10 15 Mobile Home Water Heater 40 55 1 Excluding Mobile Home Water Heater (2) On and after the applicable Table 2 compliance dates, a person shall only manufacture, supply, sell, resell, offer for sale, import, or Install, for use in the South Coast AQMD, a Zero-NOx Emission Unit, that emits zero ng/J of NOx, in place of a Water Heater according to the Table 2 compliance schedule, unless the Water Heater is included in the Zero-NOx Emission Manufacturer Alternative Compliance Option pursuant to paragraph (f)(1) as indicated in the Informative Materials for the Water Heater pursuant to subparagraph (g)(1)(B). The applicable Table 2 compliance dates for New Building types shall be determined based on the construction or alteration completion date. Table 2 – Zero-NOx Emission Limit Compliance Schedule Equipment Category Building Type Compliance Date Water Heater1 New January 1, 2027 Existing January 1, 2029 Mobile Home Water Heater New January 1, 2027 1 Excluding Mobile Home Water Heater (de) Certification (1) The manufacturer shall obtain confirmation that each model of water heaterWater Heater complies with the applicable requirements of subdivision (c) paragraph (d)(1) from an independent testing laboratory Independent Testing Laboratory prior to applying for certification for a Water Heater. This confirmation shall be based upon emission tests conducted pursuant to the Protocol of a randomly selected unit of each model and the Protocol shall be adhered to during the confirmation testing of all water heaters subject to this rule. (2) When applying for certification of water heatersWater Heaters, the manufacturer shall submit to the Executive Officer the following: C-6 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 7 (A) A statement that the model is in compliance with subdivision (c)paragraph (d)(1), . The statement shall be signed and dated bywith the manufacturer identifiedand dated, and shall attesting to the accuracy of all statements; (B) General Information, including: (i) Name and address of manufacturer,; (ii) Brand name, trade name; and (iii) Model number, as it appears on the water heaterWater Heater rating plate; (C) A description of each model being certified; and (D) A source test report verifying compliance with subdivision (c) paragraph (d)(1) for each model to be certified. The source test report shall be , prepared by the confirming independent testing laboratory Independent Testing Laboratory and shall containing all of the elements identified in Section 10 of the Protocol for each unit tested. The source test shall have been conducted no more than ninety days prior to the date of submittal to the Executive Officer. (3) When applying for certification of water heatersWater Heaters, the manufacturer shall submit the items identified in paragraph (d)(2)(e)(2) no more than ninety 180 days after the date of the source test identified in subparagraph (d)(2)(D)(e)(2)(D). (4) When applying for certification of water heaters for compliance with the emission limit specified in paragraph (c)(2) or (c)(3), the manufacturer shall submit the information identified in paragraph (d)(2) at least 90 days prior to the effective compliance date specified in either paragraph (c)(2) or (c)(3), respectively. (5) The Executive Officer shall certify a water heater model which complies with the provisions of subdivision (c) and of paragraphs (d)(1), (d)(2), and (d)(3). (6) Certification status shall be valid for three years from the date of approval by the Executive Officer. After the third year, recertification shall be required according to the requirements of paragraphs (d)(1) and (d)(2). (f) Alternative Compliance Options (1) Zero-Emission Manufacturer (ZEM) Alternative Compliance Option Any manufacturer of Water Heaters, other than Mobile Home Water Heaters, subject to this rule may elect to comply with the ZEM alternative compliance option in lieu of complying with paragraph (d)(2) provided: (A) The manufacturer submits an alternative compliance plan, no later than November 1, 2026, or no later than 60 days prior to any sales to the South C-7 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 8 Coast AMMD for a new manufacturer who does not have any sales into or within the South Coast AQMD as of October 31, 2026, that includes: (i) A letter with the name of the manufacturer requesting the ZEM alternative compliance option signed by a Responsible Official; (ii) A complete South Coast AQMD Form 400A with company name, indicating the application is for a compliance plan (section 7 of form), indicating the request is for the “Rule 1121 ZEM alternative compliance option” (section 9 of form), and signature of the Responsible Official; and (iii) Payment for the alternative compliance plan filing fee pursuant to Rule 306– Plan Fees; (B) The manufacturer sells, or enables distributors, retailers, Resellers, or Installers to sell, Zero-NOx Emission Units into or within the South Coast AQMD; (i) At a percentage greater than or equal to the Zero-NOx Emission Unit sales target specified in Table 3 and pays the mitigation fee in subparagraph (f)(1)(F); or (ii) At a percentage less than the Zero-NOx Emission Unit sales target specified in Table 3 and pays the mitigation fee in paragraph (f)(2)(A); (C) Zero-NOx Emission Unit sales percentage is calculated by Equation 1. For determining the number of Zero-NOx Emission Units sold in a calendar year into or within the South Coast AQMD, portable zero-NOx emission water heating appliances shall not be counted as a Zero-NOx Emission Unit; Zero‑NOx Emission Unit Sales Percentatge = (Z) (Z +N)× 100 (Eq. 1) Where: Z = Number of Zero-NOx Emission Units sold in a compliance year N= Number of Water Heaters sold in a compliance year C-8 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 9 (D) Water Heater sales percentage is calculated by Equation 2; Water Heater Sales Percentatge =100 −Zero‑NOx Emission Unit Sales Percentage (Eq. 2) (E) The Water Heaters sold under this alternative compliance option are certified to emit 10 ng/J (or 15 ppmv) or less of NOx; (F) The manufacturer pays the following mitigation fee for each Water Heater sold within the Water Heater sales target for the applicable calendar year in Table 3: (i) $50 for the calendar year 2027; (ii) $50 adjusted by CPI annual percent increase for each subsequent calendar year after 2027; and (iii) If the CPI annual percent increase for a calendar year is greater than three percent, a three percent increase will apply to that year in lieu of the CPI annual percent increase; (G) The manufacturer submits a report and mitigation fee payment pursuant to paragraph (g)(2) no later than 90 days after the end of each calendar year utilizing this alternative compliance option; and (H) The manufacturer complies with the Informative Material requirements pursuant to paragraph (g)(1). Table 3 – ZEM Alternative Compliance Option Targets Compliance phase Phase 1 Phase 2 Phase 3 Phase 4 Calendar Years 2027 - 2028 2029 - 2032 2033-2035 2036 and after Zero-NOx Emission Unit Sales Target 30 percent 50 percent 75 percent 90 percent Water Heater Sales Target 70 percent 50 percent 25 percent 10 percent (2) ZEM Alternative Compliance Option Sales Target Deviation Any manufacturer of Water Heaters subject to this rule that elects to comply with the ZEM Alternative Compliance Option pursuant to paragraph (f)(1) that deviates from the applicable Sales Target in Table 3 shall: C-9 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 10 (A) If the annual Water Heaters sales percentage is greater than the applicable calendar year Water Heater sales target specified in Table 3, pay the following mitigation fee for each Water Heater sold above the sales target: (i) $250 for the calendar year 2027; (ii) $250 adjusted by CPI annual percent increase for each subsequent calendar year after 2027; and (iii) If the CPI annual percent increase for a calendar year is greater than three percent, a three percent increase will apply to that year in lieu of the CPI annual percent increase; and; (B) If the annual Zero-NOx Emission Units sales percentage is greater than the applicable calendar year Zero-NOx Emission Unit sales target specified in Table 3, apply a discount to their annual mitigation fee required pursuant to subparagraph (f)(1)(F) according to Equation 3: Discounted Mitigation Fee =F −F × (P −T) (100 −T) (Eq. 3) Where: F = Annual Mitigation Fee pursuant to subparagraph (f)(1)(F) P = Reported Percent Zero-NOx Emission Units T = Zero-NOx Emission Unit Sales Target. (g) Informative Materials, Labeling, Recordkeeping, and Reporting (1) Informative Materials for Water Heaters (A) Effective [90 days after Date of Rule Adoption], for any Mobile Home Water Heater certified to meet the applicable Table 1 NOx emission limit that is for distribution or sale inside of the South Coast AQMD, a manufacturer shall distribute or publish Informative Materials that clearly display the following language: “If installed in South Coast AQMD only: This water heater is only allowed to be installed and used for mobile homes; and is only allowed to be installed and used for existing mobile homes or any mobile homes in a Master-Metered Mobile Home Park on and after January 1, 2027.” ; (B) For any Water Heater sold under the ZEM Alternative Compliance Option pursuant to paragraph (f)(1) in lieu of complying with paragraph (d)(2), a manufacturer shall distribute or publish Informative Materials that clearly C-10 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 11 display the following language: “If installed in South Coast AQMD only: This water heater is sold under an alternative compliance option and manufacturer is subject to compliance goal and associated mitigation fee.”; and (C) A manufacturer may request the use of alternative language in lieu of subparagraph (g)(1)(A) or (g)(1)(B), provided: (i) The alternative language is similar to the language in subparagraph (g)(1)(A) or (g)(1)(B); and (ii) If the alternative language is not approved, the manufacturer shall use the language in subparagraph (g)(1)(A) or (g)(1)(B). (2) Reporting and Recordkeeping Requirements for ZEM Alternative Compliance Option The manufacturer of a Water Heater supplied or offered for use within the South Coast AQMD in accordance with the ZEM alternative compliance option in paragraph (f)(1) shall: (A) Submit a report to the Executive Officer , signed by the Responsible Official for the manufacturer pursuant to the schedule in paragraph (f)(1)(G), that includes: (i) For Zero-NOx Emission Units: (A) Model numbers; (B) Zero-NOx Emission Unit description; and (C) Quantity of Zero-NOx Emission Units distributed or sold into or within the South Coast AQMD for the applicable calendar year; and (ii) For Water Heaters: (A) Model numbers; (B) Water Heater description; and (C) Quantity of Water Heaters distributed or sold into or within South Coast AQMD for the applicable calendar year that are subject to the ZEM alternative compliance option; and (B) Maintain records for at least five years, including the following information and any other information for compliance demonstration, and make them available to the Executive Officer upon request: (i) All information specified by subparagraph (g)(2)(A); (ii) Serial number of each Furnace and Zero-NOx Emission Units sold; C-11 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 12 (iii) Date and number of Water Heaters and Zero-NOx-Emission Units sold to a distributor; and (iv) Each distributor’s name, address, and phone number. (3) New and Existing Building Labeling Requirements For any Water Heater, except Mobile Home Water Heater, that is supplied or offered for sale for use in the South Coast AQMD and that is not electing to comply by paragraph (f)(1) for ZEM alternative compliance option during the period of January 1, 2027 to January 1, 2029, the manufacturer of the Water Heater shall prominently display on the shipping container, or the name plate of the Water Heater, the following: (A) The statement: “If Installed in South Coast AQMD: 1) After January 1, 2027, shall not be sold for installation in new buildings; and 2) After January 1, 2029, not compliant for use and installation in South Coast AQMD.” (B) A manufacturer may use alternative language in lieu of subparagraph (g)(3)(A) provided: (i) The alternative language is similar to the language in subparagraph (g)(3)(A); and (ii) If the alternative language is not approved, the manufacturer shall use the language in subparagraph (g)(3)(A). (4) The manufacturer of any Water Heater manufactured for sale in the South Coast AQMD shall clearly display on the shipping carton and the name plate of the water heater: (A) Model number; (B) Date of manufacture; and (C) Certification status. (e) Mitigation Fee Any manufacturer that elects to submit a mitigation fee to the District to meet the Nox emission level established under subparagraph (c)(2)(C) shall: (1) submit a Mitigation Fee Plan to the Executive Officer 180 days prior to complying with the provisions of paragraph (c)(2), where the Mitigation Fee Plan includes: (A) the name of the manufacturer; (B) the compliance period that the mitigation fee covers shall not exceed a 12- month time period; and C-12 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 13 (C) the number of water heaters sold over the compliance period, which shall be based on sales records or invoices of water heaters in a similar model and size that were sold in the district over the past 12 months. (2) receive written verification from the Executive Officer that the Mitigation Fee Plan was approved prior to complying with the provisions of paragraph (c)(2); (3) on and after January 1, 2005, pay a mitigation fee at the beginning of the compliance period in the amount of $3.00 per water heater sold as specified in subparagraph (e)(1)(C), over the time period the mitigation fee covers as specified in subparagraph (e)(1)(B); and before January 1, 2005, pay a mitigation fee in the amount of $5,400 per ton of NOx multiplied by the amount of NOx emission reductions needed as specified in Equation 1; Equation 1: 𝑀𝐹=$5,400/𝑟𝑙𝑙× [(𝑟× 𝑙× 190𝑟�𝑒𝑟𝑙𝑟/𝑦𝑟× (93 −46.5𝑙𝑏𝑟/𝑏�ℎ𝑙𝑙�ℎ𝑙𝑙𝐵𝑟𝑟 −𝑙𝑟𝑟𝑙𝑟𝑟)× 0.76)/(2000 × 10,000)] where: MF = Mitigation fee, Dollars t = Time period that mitigation fee covers as specified in subparagraph (f)(1)(C) n = Number of water heaters sold as specified in subparagraph (f)(1)(D) (4) label water heaters identified in the Mitigation Fee Plan; (5) maintain records and report sales of water heaters covered by the Mitigation Fee Plan and if the number of water heaters originally estimated exceed the number of water heaters identified in subparagraph (e)(1)(C), the water heater manufacturer shall update the Mitigation Fee Plan within 60 days after the end of the compliance period. Make these records available to the Executive Officer upon request, for a period of at least three years after the end of the compliance period. (f) Enforcement The Executive Officer may periodically inspect distributors, retailers, and installers of water heaters located in the District and conduct such tests as are deemed necessary to insure compliance with subdivision (c). C-13 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 14 (gh) Exemptions (1) The provisions of this rule shall not apply to: Water Heaters used in Recreational Vehicles. (2) The provisions of this rule shall not apply to Water Heaters subject to Rule 1146.2 – Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers and Process Heaters. (3) Paragraph (d)(2) shall not apply to the following Water Heaters: (A) Mobile Home Water Heaters in compliance with paragraph (d)(1) for installation in Existing Buildings; (B) Mobile Home Water Heaters in compliance with paragraph (d)(1) for installation or use in Master-Metered Mobile Home Parks; and (C) Water Heaters in compliance with paragraph (d)(1) that will be installed or used in New Buildings with building permits issued prior to [Date of Adoption] by the appropriate enforcement agency. (1) Water heaters with a rated heat input capacity of 75,000 Btu per hour or greater. (2) Water heaters used in recreational vehicles. (h) Final Progress Report On or before April 1, 2007, any person that manufacturers direct-vent, power-vent or power direct-vent water heaters for sale within the South Coast Air Basin shall submit to the Executive Officer a final progress report that shall include: (1) Identification of efforts that have been made to reach commercialization of direct - vent, power-vent, and power direct-vent water heaters that meet the NOx emission level specified under paragraph (c)(3); (2) A description of the technologies used to meet the NOx emission level for direct- vent, power-vent, and power direct-vent water heaters specified under paragraph (c)(3); and (3) Complete documentation for at least three laboratory test results each for direct- vent, power-vent, and power direct-vent water heaters developed to meet the NOx emission level specified under paragraph (c)(3) that shall include the emissions rate measured by an independent testing laboratory using the SCAQMD protocol specified under paragraph (b)(11) or other protocol approved in advance by the Executive Officer. (i) Program Administration C-14 Proposed Amended Rule 1121 (Cont.) (Amended September 3, 2004TBD) PAR 1121 - 15 On and after September 3, 2004, the Executive Officer is authorized to use up to 5% of the mitigation fee funds collected in any given year for program administration. C-15 D-1 City of Rancho Palos Verdes Page 2 of 7 2025 Legislative Platform CITY OF RANCHO PALOS VERDES 2025 LEGISLATIVE PLATFORM Adopted by Resolution No. 2024-XX on February 4, 2025. PURPOSE The City of Rancho Palos Verdes’ 2025 Legislative Platform (Platform) outlines the policy positions of the City Council on current issues that impact the City. This Platform serves as a guideline to actively engage with pending legislation and funding opportunities at the Federal, State and Local levels, with City Council approval. The City looks forward to working with regional, county, state, and federal partners to best serve its residents. The statements outlined in the Platform represent the City’s overarching position on legislative and regulatory issues of interest. PRIORITY CITY PROJECTS Through the City’s Capital Improvement Plan (CIP), major projects are planned for a period of five years. The list below includes important projects of regional significance listed within the CIP that do not have sufficient funding. The City is in support of legislation, policies, programs, or administrative actions that would provide funding to realize these priority projects. A. Greater Portuguese Bend-Landslide Complex Remediation Project Total Cost: - $150 million for project construction (Dewatering Extraction Wells and Water Intrusion Prevention Implementation) - $20 million for annual operations and maintenance of planned infrastructure Status: Construction Description: The Greater Portuguese Bend-Landslide Complex is the largest active landslide in North America, encompassing two of the City’s roughly 14 square miles, directly impacting Palos Verdes Drive South (a major arterial) and a Sanitation District trunk line – both of which serve neighboring cities and thousands of residents and visitors daily. The project seeks to protect life, public health, safety, and the environment through mitigation of land movement in the landslide complex area. Funding Opportunities: • County Funded Capital and O&M projects (including County Sanitation District, County Flood Control District, as well as County Capital improvement projects) • State Funded Capital and O&M projects (including State budget earmarks, State Office of Emergency Services Support, as well as other state funded projects) D-2 City of Rancho Palos Verdes Page 3 of 7 2025 Legislative Platform B. Civic Center Campus Master Plan Total Cost: $150 million Status: Updated, preliminary conceptual site plan complete. Moving on to the selection of a project management firm and the Master Plan and Design Development Stage. Description: The development of the approximately 19-acre Ken Dyda Civic Center Campus into a modern and functional community hub has been a long-standing goal of the city. The project’s current preliminary conceptual site plan, as of June 2024, includes a new City Hall, parking improvements, a Council Chambers, improved site amenities including an amphitheater, village green, public plaza, and parking and access enhancements. Of greatest urgency, however, is the development of a 9.5-acre Emergency Zone on the east end of the campus. FEMA- approved plans for this Zone include an emergency operations center, incident management command center, helipad, helopod, evacuation area, and emergency supply storage and staging area. FEMA has indicated that the Emergency Zone must be developed within four years or approximately Summer 2028. Otherwise, the parcel may revert to Federal control and become subject to sale. As such, the City’s current priority is the funding and development of this Emergency Zone. Secondly, partner with Wayfarers Chapel to consider the feasibility of relocating to the Civic Center site as a preferred alternate location. During Summer 2024, the Chapel was significantly damaged by landslide movement in Portuguese Bend and has since been dismantled and stored off site to preserve the remainder of the historic structure until it can be restored in another location. The approved financial plan for the overall project includes a maximum amount of $45.4 million, which is a combination of both cash on hand and a long-term loan. Additional funding sources are critical to building out the site per the Master Plan and FEMA’s requirements. Funding Opportunities • State budget earmarks • State of California GoBIZ iBank Zero to Low Interest Loans D-3 City of Rancho Palos Verdes Page 4 of 7 2025 Legislative Platform PRIORITY POLICY AREAS 1. HOUSING AND LOCAL LAND USE A. Oppose legislation that infringes on local control and erodes the City’s authority to manage its own affairs. Support actions which further strengthen local democracy, authority, and control. B. Support state grants, legislation, or programs which encourage sustainable and affordable housing development. Support policies or grants that facilitate the development of regional housing trusts. C. Oppose legislation that penalizes cities or local governments if the units identified in the Regional Housing Needs Allocation (RHNA) are not constructed. Oppose legislation that proposes to convert RHNA from a planning process to a production standard. Oppose RHNA legislation that requires high density housing in cities with fire hazard severity zones and other vulnerabilities that may put residents at risk in the event of a natural disaster. D. Support legislation that preserves local authority to manage public rights-of-way including the aesthetics of infrastructure placed within them. E. Support legislation that preserves local authority to zone and plan for the deployment of telecommunications infrastructure within public rights-of-way. F. Oppose legislation that diminishes the authority of local jurisdictions in processing permits, enforcing building codes, or mandating the manner of enforcement. G. Oppose legislation that seeks to limit or eliminate municipal authority to regulate street or sidewalk vendors. H. Support legislation and administrative actions that protect a local jurisdiction to preserve open space in and around their jurisdiction. I. Support legislation efforts that allow for local land use and zoning decisions and oppose efforts that strip a local government’s authority to make decisions regarding parking requirements. o Potential Coalition Partners: League of California Cities (Cal Cities), South Bay Cities Council of Governments (SBCCOG), California Contract Cities Association (CCCA), Southern California Association of Governments (SCAG), Palos Verdes Peninsula Cities (PV Cities), Our Neighborhood Voices Initiative D-4 City of Rancho Palos Verdes Page 5 of 7 2025 Legislative Platform 2. PUBLIC SAFETY A. Support legislation that strengthens and enforces legal protections for all individuals who are victims of crimes, including those that are victims of hate crimes or hate incidents. B. Support legislation and other measures that enhance and provide equal access to public safety funding for municipal public safety divisions, including training, effective emergency preparedness and planning, resiliency, law enforcement and fire department infrastructure, and public safety. C. Support the implementation of Proposition 36 that imposes tougher penalties for serial retail theft and drug possession. Support legislation that increases public awareness of the fentanyl crisis and provides treatment and resources to rehabilitate those with addictions. D. Support legislation to accelerate the development and implementation of enhanced electrical utility infrastructure, including the undergrounding of utility equipment to ensure reliable utility service and public safety and thereby reduces the need for public safety power shutoffs. E. Support legislation or other methods that protect insurance coverage for properties within and adjacent to very high fire zones and geologic hazard abatement districts. o Potential Coalition Partners: Cal Cities, SBCCOG, CCCA, Department of Insurance, State Controller, Los Angeles County Sheriff’s Department (LASD), Los Angeles County Fire Department, PV Cities 3. COMMUNITY SERVICES A. Support legislation and local, state, and federal programs that employ evidence- based strategies to reduce the number of unhoused people or individuals with housing insecurity; promote mental health and substance abuse services; provide emergency and transitional housing; expand permanent affordable housing; and promote self-empowerment through counseling, job training, and other wrap around supportive services. B. Support legislation and local, state, and federal programs that aim to provide mental health services, including youth and young adult programs, community resource centers, and education in accessing mental health care. C. Support increased and sustainable funding for the construction and maintenance of community park facilities; preservation of open space and trails, proactive maintenance for brush clearance to help reduce wildfire risks, and recreation programs. D-5 City of Rancho Palos Verdes Page 6 of 7 2025 Legislative Platform D. Support legislation that equitably reallocates state funding to support local school districts based on performance and does not impart financial incentive for lack of scholastic performance and improvement. E. Continue working with Federal representatives and agencies to transfer or enter into a joint use agreement for the Point Vicente Lighthouse and Battery Barnes bunker properties that are currently owned and operated by the U.S. Coast Guard. o Potential Coalition Partners: Palos Verdes Peninsula Land Conservancy, Cal Cities, SBCCOG, CCCA, Los Angeles Homeless Services Authority, Los Angeles County, CARE Court, Allcove and South Bay Health District, PV Cities, Palos Verdes Peninsula Unified School District 4. ENVIRONMENTAL QUALITY A. Support legislation that recognizes landslides as a disaster that constitutes a state or local emergency under the Emergency Services Act B. Support legislation, funding, regulations, or administrative actions to remediate the harmful effects of dichloro-diphenyl-trichloroethane (DDT) and PFAS in coastal waters, especially on the Palos Verdes Peninsula. C. Support legislation that provides rebate programs, tax credits, and other financial incentives to encourage property owners to invest in water efficient systems and landscaping, and energy efficiency, including renewable energy systems. o Potential Coalition Partners: Cal Cities, SBCCOG, Los Angeles County, PV Cities, coastal cities 5. GOVERNMENT TRANSPARENCY AND EFFECTIVENESS A. Support legislation that grants full cost reimbursement to local agencies by state and federal government for all mandated programs. B. Support legislation that ensures the retention of existing local revenue sources, including the City’s share of property taxes, sales and use taxes, transient occupancy taxes, development and other operating fees etc. C. Support legislation that requires State legislature to be held to the same Brown Act requirements that cities and counties must adhere to. D. Support legislation modernizing the methods by which a local agency may comply with the Brown Act. Support legislation that allows for the continued use of teleconferencing platforms to hold hybrid public meetings outside of a declared D-6 City of Rancho Palos Verdes Page 7 of 7 2025 Legislative Platform state of emergency, thus increasing access to public meetings and promoting greater transparency. E. Support legislation which allows for regional considerations within Los Angeles County, particularly at the council of governments (COG) level, in relation to public health, homelessness, and sustainability, among other areas of regional significance. F. Oppose legislation that would prohibit or limit local governments’ ability to contract out for the provision of services. o Potential Coalition Partners: Cal Cities, SBCCOG, CCCA, PV Cities D-7 D-8