“ Codes  and Standards Issues Impacting Natural Gas Service and Appliances” SGA  Residential Marketing Conference Covingto...
Marketing Implication <ul><li>Codes and Standards Impact </li></ul>WHICH, HOW, WHEN & IF appliances can be installed
AGA’S Role   <ul><li>Building Energy Codes and Standards Committee </li></ul><ul><ul><li>34 Member Companies </li></ul></u...
 
AGA’S Role   <ul><li>Secretariat to the National Fuel Gas Code Committee </li></ul><ul><ul><li>ANSI Accredited Committee Z...
Can Be Adopted Directly
<ul><li>AGA Website: www.aga.org </li></ul><ul><li>To Order: 1.866.816.9444 </li></ul>
AGA’S Role   <ul><li>Interact with Voluntary Codes and Standards Writing Organizations </li></ul><ul><ul><li>IAPMO UMC and...
AGA’S Role   <ul><li>Interact with Voluntary Codes and Standards Writing Organizations </li></ul><ul><ul><li>CSA Internati...
AGA’S Role   <ul><li>Interact with Federal and State Agencies </li></ul><ul><ul><li>Department of Energy  </li></ul></ul><...
AGA’S Role   <ul><li>Interact with Federal and State Agencies </li></ul><ul><ul><li>HUD Manufactured Home Standard  </li><...
Residential Gas Water Heating <ul><li>Importance </li></ul><ul><li>Impacts Of Voluntary Standards Changes </li></ul><ul><l...
The Residential Market Importance <ul><li>Statistical Trends (2003) </li></ul><ul><ul><li>Gas Water Heater Shipments </li>...
Major Residential  Safety  Standard Changes for Gas Water Heaters <ul><ul><li>ANSI Z21.10.1 Requirements </li></ul></ul><u...
Effective Dates Established By CSA International <ul><li>July 1, 2003 </li></ul><ul><ul><li>Conv.  30, 40, & 50 gallon </l...
WH Installation Code Changes <ul><li>National Fuel Gas Code </li></ul><ul><li>International Fuel Gas Code </li></ul><ul><u...
New Federal (DOE) Minimum  Efficiency  Requirements <ul><li>New Minimums  From a .54 EF to .59 EF (40 gal. Gas Water Heate...
FTC Label  <ul><li>Does provide Estimated Annual Operating Cost </li></ul>
Sample FTC Label
Texas Commission on Environmental Quality Rulemaking Impact of Rulemaking Limiting NO X  Emissions from Residential Water ...
Overview <ul><li>TCEQ rulemaking designed to reduce  nitrogen oxide  ( NO X ) emissions from new natural gas appliances so...
Overview (cont’d.) <ul><ul><li>Includes provision that residential water heaters sold after January, 2005 must be certifie...
Overview (cont’d.) <ul><ul><li>Source:  Texas Natural Resource Conservation Commission </li></ul></ul>El Paso Houston Corp...
Background <ul><li>Ozone (O 3 ) is a photochemical oxidant and the major component of smog.  </li></ul><ul><ul><li>High co...
Background (cont’d.) <ul><ul><li>Source:  EPA Technology Transfer Network </li></ul></ul>0 5 10 15 20 25 30 Emissions (per...
Background (cont’d.) <ul><li>1-Hour Ozone Standard  </li></ul><ul><ul><li>The ozone threshold value is 0.12 parts per mill...
Background (cont’d.) <ul><li>EPA Designations   </li></ul><ul><ul><li>Nonattainment - any area that does not meet (or that...
Background (cont’d.) <ul><li>Ozone Classifications </li></ul><ul><ul><li>Extreme - Area has a design value of 0.280 ppm an...
Background (cont’d.) <ul><li>Ozone Classifications (cont’d.) </li></ul><ul><ul><li>Moderate - Area has a design value of 0...
Background (cont’d.) <ul><li>South Coast Air Quality Management District  </li></ul><ul><ul><li>Established NO X  emission...
The Problem <ul><li>The impact of the TCEQ rulemaking on the market for residential gas water heaters is expected to be dr...
Project Objectives <ul><li>Analyze the impact of the TCEQ rulemaking concerning the control of air pollution from NO X , s...
Analysis Approach <ul><li>Obtain more detailed information on the subject rulemaking, including any analyses used to subst...
Analysis Approach (cont’d.) <ul><li>Ascertain the availability and installed cost of natural gas water heaters that curren...
Analysis Approach (cont’d.) <ul><li>Determine whether the rulemaking’s objective of reducing the level of ozone in  non-at...
Project Deliverables   <ul><li>Report summarizing analysis approach, results and recommendations.  </li></ul><ul><ul><li>S...
Who’s Next?
Commercial Water Heater  Market Trends
 
 
 
 
Residential Gas Central Heating <ul><li>Importance </li></ul><ul><li>Impacts Of Voluntary Standards Changes </li></ul><ul>...
The Residential Market Importance <ul><li>Statistical Trends (2003) </li></ul><ul><ul><li>Gas Furnace Shipments </li></ul>...
Major Residential  Safety  Standards: Residential Gas Central Heating Equipment <ul><ul><li>ANSI Z21.47 (Furnaces) </li></...
Installation Codes <ul><li>National Fuel Gas Code (2002) </li></ul><ul><ul><li>Currently Working On the 2005 Edition </li>...
Current Federal (DOE) Minimum  Efficiency  Requirements <ul><li>Effective Date: 1/01/92 </li></ul><ul><li>Furnace Minimums...
Status of DOE Rulemaking <ul><li>DOE Notice expected this month?  Will it happen?  </li></ul><ul><li>Impact Of DOE Air Con...
Comparing Estimated Annual  Operating Costs <ul><ul><ul><li>DOE National Average Energy Costs: </li></ul></ul></ul><ul><ul...
FTC Label  <ul><li>Does provide AFUE Ranges  </li></ul><ul><li>No Estimated Annual Operating Cost </li></ul>
Sample FTC Label – Natural Gas Furnace
Sample FTC Label – Electric Furnace
Summary <ul><li>For More Information Contact  </li></ul><ul><li>Jim Ranfone </li></ul><ul><li>AGA </li></ul><ul><li>202-82...
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  • Voluntary codes and standards are important because they can and often are adopted by states or jurisdictions.
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  • Transcript of "Natural gas"

    1. 1. “ Codes and Standards Issues Impacting Natural Gas Service and Appliances” SGA Residential Marketing Conference Covington, Kentucky July 14, 2004 Jim Ranfone Managing Director, Building Codes & Standards American Gas Association
    2. 2. Marketing Implication <ul><li>Codes and Standards Impact </li></ul>WHICH, HOW, WHEN & IF appliances can be installed
    3. 3. AGA’S Role <ul><li>Building Energy Codes and Standards Committee </li></ul><ul><ul><li>34 Member Companies </li></ul></ul><ul><ul><li>SGA, APGA, GAMA, GTI, NFPA, NPGA, etc. Represented </li></ul></ul><ul><ul><ul><li>Set Priorities and Guide Activities </li></ul></ul></ul><ul><ul><ul><li>Identifies C&S Research Needs </li></ul></ul></ul>
    4. 4.  
    5. 5. AGA’S Role <ul><li>Secretariat to the National Fuel Gas Code Committee </li></ul><ul><ul><li>ANSI Accredited Committee Z223 </li></ul></ul><ul><ul><li>2002 Edition Published </li></ul></ul><ul><li>Partner with the International Code Council </li></ul><ul><ul><li>Co-sponsor the International Fuel Gas Code (IFGC) </li></ul></ul><ul><ul><li>2003 ICC Code Published </li></ul></ul>
    6. 6. Can Be Adopted Directly
    7. 7. <ul><li>AGA Website: www.aga.org </li></ul><ul><li>To Order: 1.866.816.9444 </li></ul>
    8. 8. AGA’S Role <ul><li>Interact with Voluntary Codes and Standards Writing Organizations </li></ul><ul><ul><li>IAPMO UMC and UPC </li></ul></ul><ul><ul><ul><li>AGA Successful In Blocking ANSI Approval </li></ul></ul></ul><ul><ul><li>Building Code Groups </li></ul></ul><ul><ul><ul><li>International Code Council’s IBC </li></ul></ul></ul><ul><ul><ul><li>NFPA 5000 Building Code </li></ul></ul></ul><ul><ul><li>ASHRAE </li></ul></ul><ul><ul><ul><li>Building Efficiency and Ventilation Standards </li></ul></ul></ul><ul><ul><ul><li>ASHRAE 90.1 (Commercial Buildings) </li></ul></ul></ul><ul><ul><ul><li>ASHRAE 90.2 (Residential) </li></ul></ul></ul><ul><ul><ul><li>62.1 (Commercial Buildings) </li></ul></ul></ul><ul><ul><ul><li>62.2P(Residential IAQ) </li></ul></ul></ul>
    9. 9. AGA’S Role <ul><li>Interact with Voluntary Codes and Standards Writing Organizations </li></ul><ul><ul><li>CSA International </li></ul></ul><ul><ul><ul><li>Gas Appliance Standards (Some utility representation) </li></ul></ul></ul><ul><ul><li>Underwriters Laboratories </li></ul></ul><ul><ul><ul><li>Gas Products Council </li></ul></ul></ul>
    10. 10. AGA’S Role <ul><li>Interact with Federal and State Agencies </li></ul><ul><ul><li>Department of Energy </li></ul></ul><ul><ul><ul><li>Furnace Rulemaking </li></ul></ul></ul><ul><ul><li>Federal Trade Commission </li></ul></ul><ul><ul><ul><li>Appliance Labeling </li></ul></ul></ul><ul><ul><li>Consumer Product Safety Commission Influence On Product Standards </li></ul></ul>
    11. 11. AGA’S Role <ul><li>Interact with Federal and State Agencies </li></ul><ul><ul><li>HUD Manufactured Home Standard </li></ul></ul><ul><ul><li>State Hearings and Code Adoption Processes When Requested </li></ul></ul>
    12. 12. Residential Gas Water Heating <ul><li>Importance </li></ul><ul><li>Impacts Of Voluntary Standards Changes </li></ul><ul><li>Impacts Of New Federal Minimum Efficiency Requirements </li></ul><ul><li>NOx Requirements (Ca & Texas) </li></ul>
    13. 13. The Residential Market Importance <ul><li>Statistical Trends (2003) </li></ul><ul><ul><li>Gas Water Heater Shipments </li></ul></ul><ul><ul><ul><li>5,124,265 (53%) </li></ul></ul></ul><ul><ul><li>Electric Water Heater Shipments </li></ul></ul><ul><ul><ul><li>4,429,880 (47%) </li></ul></ul></ul><ul><li>Annual Gas Consumption per household about 34 Mcf </li></ul>
    14. 14. Major Residential Safety Standard Changes for Gas Water Heaters <ul><ul><li>ANSI Z21.10.1 Requirements </li></ul></ul><ul><ul><li>Flammable Resistant Requirement </li></ul></ul><ul><ul><li>18” Elevation Label Change </li></ul></ul>
    15. 15. Effective Dates Established By CSA International <ul><li>July 1, 2003 </li></ul><ul><ul><li>Conv. 30, 40, & 50 gallon </li></ul></ul><ul><li>January 1, 2005 (Change) </li></ul><ul><ul><li>Power Vent, etc. 30, 40, & 50 gallon </li></ul></ul>
    16. 16. WH Installation Code Changes <ul><li>National Fuel Gas Code </li></ul><ul><li>International Fuel Gas Code </li></ul><ul><ul><ul><li>Eliminated 18” elevation requirement </li></ul></ul></ul>
    17. 17. New Federal (DOE) Minimum Efficiency Requirements <ul><li>New Minimums From a .54 EF to .59 EF (40 gal. Gas Water Heater) </li></ul><ul><li>Effective Date: 1/20/04 </li></ul><ul><li>Design Changes to Meet </li></ul><ul><ul><li>Heat traps, Increased insulation and flue baffles </li></ul></ul><ul><ul><li>Cost increase $58 (DOE 1/17/01) </li></ul></ul><ul><ul><li>Savings $12.74/year (DOE 1/17/01) </li></ul></ul><ul><ul><li>Can be met with atmospheric type designs but concerns about reduced margin of safety </li></ul></ul>
    18. 18. FTC Label <ul><li>Does provide Estimated Annual Operating Cost </li></ul>
    19. 19. Sample FTC Label
    20. 20. Texas Commission on Environmental Quality Rulemaking Impact of Rulemaking Limiting NO X Emissions from Residential Water Heaters Prepared by GARD Analytics, Inc. under contract to the American Gas Association
    21. 21. Overview <ul><li>TCEQ rulemaking designed to reduce nitrogen oxide ( NO X ) emissions from new natural gas appliances sold and installed in Texas. </li></ul><ul><ul><li>Rulemaking covers water heaters, small boilers, and process heaters. </li></ul></ul><ul><ul><li>Objective is to reduce the level of ozone in non-attainment and near non-attainment areas. </li></ul></ul>
    22. 22. Overview (cont’d.) <ul><ul><li>Includes provision that residential water heaters sold after January, 2005 must be certified to have a NO X emission level no greater than 10ng/j of heat output (15 ppmv at 3.0% O 2 , dry). </li></ul></ul>
    23. 23. Overview (cont’d.) <ul><ul><li>Source: Texas Natural Resource Conservation Commission </li></ul></ul>El Paso Houston Corpus Christi Dallas-Ft. Worth Austin San Antonio Tyler - Longview Victoria
    24. 24. Background <ul><li>Ozone (O 3 ) is a photochemical oxidant and the major component of smog. </li></ul><ul><ul><li>High concentrations of O 3 at ground level are a major health and environmental concern. </li></ul></ul><ul><ul><li>O 3 is formed through chemical reactions between volatile organic compounds (VOC) and NO X . </li></ul></ul><ul><ul><li>Both VOCs and NO X are emitted by transportation and industrial sources, including autos, chemical manufacturing, dry cleaners, paint shops and other sources using solvents. </li></ul></ul><ul><ul><li>Source: EPA Green Book </li></ul></ul>
    25. 25. Background (cont’d.) <ul><ul><li>Source: EPA Technology Transfer Network </li></ul></ul>0 5 10 15 20 25 30 Emissions (percent of total) Metals Processing Solvent Utilization Storage & Transport Waste Disposal & Recycling Natural Sources Miscellaneous Chemical & Allied Product Mfg Fuel Comb. Other * Petroleum & Related Industries Other Industrial Processes Fuel Comb. Industrial Fuel Comb. Elec. Utility Off-Highway Highway Vehicles Texas Annual NO X Emissions <ul><ul><li>* Includes emissions from residential natural gas combustion (0.50% of total) </li></ul></ul>
    26. 26. Background (cont’d.) <ul><li>1-Hour Ozone Standard </li></ul><ul><ul><li>The ozone threshold value is 0.12 parts per million (ppm), measured as 1-hour average concentration. </li></ul></ul><ul><ul><li>An area meets the ozone National Ambient Air Quality Standards (NAAQS) if there is no more than one day per year when the highest hourly value exceeds the threshold. </li></ul></ul><ul><ul><li>To be in attainment, an area must meet the ozone NAAQS for three consecutive years. </li></ul></ul><ul><ul><li>Source: EPA Green Book </li></ul></ul>
    27. 27. Background (cont’d.) <ul><li>EPA Designations </li></ul><ul><ul><li>Nonattainment - any area that does not meet (or that contributes to ambient air quality in a nearby area that does not meet) the air quality standard for the pollutant. </li></ul></ul><ul><ul><li>Attainment - any area that meets the national primary or secondary ambient air quality standard for the pollutant. </li></ul></ul><ul><ul><li>Unclassifiable - any area that cannot be classified on the basis of available information </li></ul></ul><ul><li>Source: Clean Air Act, Section 107(d)1 </li></ul>
    28. 28. Background (cont’d.) <ul><li>Ozone Classifications </li></ul><ul><ul><li>Extreme - Area has a design value of 0.280 ppm and above. </li></ul></ul><ul><ul><li>Severe 17 - Area has a design value of 0.190 up to 0.280 ppm and has 17 years to attain. </li></ul></ul><ul><ul><li>Severe 15 - Area has a design value of 0.180 up to 0.190 ppm and has 15 years to attain. </li></ul></ul><ul><ul><li>Serious - Area has a design value of 0.160 up to 0.180 ppm. </li></ul></ul><ul><li>Source: Clean Air Act, Section 181 </li></ul>
    29. 29. Background (cont’d.) <ul><li>Ozone Classifications (cont’d.) </li></ul><ul><ul><li>Moderate - Area has a design value of 0.138 up to 0.160 ppm. </li></ul></ul><ul><ul><li>Marginal - Area has a design value of 0.121 up to 0.138 ppm. </li></ul></ul><ul><ul><li>Submarginal - Area has a design value of less than 0.121 parts per million. </li></ul></ul><ul><ul><li>Section 185A - Area has not violated air quality standard for ozone from Jan. 1987 to Dec. 1989. </li></ul></ul><ul><ul><li>Incomplete Data </li></ul></ul><ul><li>Source: Clean Air Act, Section 181 </li></ul>
    30. 30. Background (cont’d.) <ul><li>South Coast Air Quality Management District </li></ul><ul><ul><li>Established NO X emission limit for residential gas water heaters in California of 10ng/j of heat output (Rule 1121) </li></ul></ul><ul><ul><li>GAMA requested that implementation of this provision be delayed until January 1, 2006 </li></ul></ul><ul><ul><li>GAMA has proposed similar delay for the TCEQ rulemaking </li></ul></ul>
    31. 31. The Problem <ul><li>The impact of the TCEQ rulemaking on the market for residential gas water heaters is expected to be dramatic. </li></ul><ul><li>No atmospherically vented units that meet the provision’s criteria of the are thought to be commercially available at this time. </li></ul><ul><li>Only viable substitute, electric resistance water heaters, would only aggravate the current situation. </li></ul>
    32. 32. Project Objectives <ul><li>Analyze the impact of the TCEQ rulemaking concerning the control of air pollution from NO X , specifically as it pertains to residential water heaters. </li></ul><ul><li>Support Texas utilities efforts to reshape the debate on NO X reduction in nonattainment areas. </li></ul><ul><li>Help other utilities deal with similar future legislation in their service territories. </li></ul>
    33. 33. Analysis Approach <ul><li>Obtain more detailed information on the subject rulemaking, including any analyses used to substantiate the proposed emission levels </li></ul><ul><li>Obtain information regarding the process for amending the language of the rulemaking and its implementation. </li></ul>
    34. 34. Analysis Approach (cont’d.) <ul><li>Ascertain the availability and installed cost of natural gas water heaters that currently meet the proposed NO X emission levels. </li></ul><ul><li>Project NO X emission levels in nonattainment areas before and after implementation of the rulemaking taking into account market shifts from natural gas water heaters to electric resistance units. </li></ul>
    35. 35. Analysis Approach (cont’d.) <ul><li>Determine whether the rulemaking’s objective of reducing the level of ozone in non-attainment and near non-attainment areas is achievable with the current provisions. </li></ul>
    36. 36. Project Deliverables <ul><li>Report summarizing analysis approach, results and recommendations. </li></ul><ul><ul><li>Support possible AGA filing. </li></ul></ul><ul><ul><li>Resource for other utilities faced with similar legislative action. </li></ul></ul><ul><li>Presentation materials. </li></ul>
    37. 37. Who’s Next?
    38. 38. Commercial Water Heater Market Trends
    39. 43. Residential Gas Central Heating <ul><li>Importance </li></ul><ul><li>Impacts Of Voluntary Standards Changes </li></ul><ul><li>Impacts Of New Federal Minimum Efficiency Requirements </li></ul>
    40. 44. The Residential Market Importance <ul><li>Statistical Trends (2003) </li></ul><ul><ul><li>Gas Furnace Shipments </li></ul></ul><ul><ul><ul><li>3,265,550 (31.4% Condensing i.e. 88% AFUE +) </li></ul></ul></ul><ul><ul><li>Gas Boilers </li></ul></ul><ul><ul><ul><li>240,000 (est.) </li></ul></ul></ul><ul><ul><li>Annual Gas Consumption per household about 67.9 Mcf </li></ul></ul>
    41. 45. Major Residential Safety Standards: Residential Gas Central Heating Equipment <ul><ul><li>ANSI Z21.47 (Furnaces) </li></ul></ul><ul><ul><ul><li>Combustion Sensors? </li></ul></ul></ul><ul><ul><li>ANSI Z21.13 (Boilers) </li></ul></ul>
    42. 46. Installation Codes <ul><li>National Fuel Gas Code (2002) </li></ul><ul><ul><li>Currently Working On the 2005 Edition </li></ul></ul><ul><ul><li>Over 166 Active Proposals </li></ul></ul><ul><ul><li>All 12 AGA Proposals Tentatively Approved </li></ul></ul><ul><li>International Fuel Gas Code (2003) </li></ul><ul><ul><li>New requirements for combustion air to provide reasonable alternatives for builders. </li></ul></ul>
    43. 47. Current Federal (DOE) Minimum Efficiency Requirements <ul><li>Effective Date: 1/01/92 </li></ul><ul><li>Furnace Minimums 78% AFUE(ICS) </li></ul><ul><li>Boiler Minimum 80% AFUE (Indoor) 75% Steam </li></ul><ul><li>Manufactured Home 75% AFUE </li></ul><ul><li>DOE has been conducting Analysis </li></ul><ul><li>Last Workshops July 17, 2001, & May 8, 2002 (Venting issues) </li></ul>
    44. 48. Status of DOE Rulemaking <ul><li>DOE Notice expected this month? Will it happen? </li></ul><ul><li>Impact Of DOE Air Conditioner Rule - 13 SEER Effective 1/23/06 </li></ul>
    45. 49. Comparing Estimated Annual Operating Costs <ul><ul><ul><li>DOE National Average Energy Costs: </li></ul></ul></ul><ul><ul><ul><li>2003 2004 </li></ul></ul></ul><ul><ul><ul><ul><li>Natural Gas: $ 8.16 $ 9.10 per million Btu </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Propane: $13.25 $13.46 per million Btu </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Electricity: $24.65 $25.20 per million Btu </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Oil: $ 8.80 $ 9.23 per million Btu </li></ul></ul></ul></ul>
    46. 50. FTC Label <ul><li>Does provide AFUE Ranges </li></ul><ul><li>No Estimated Annual Operating Cost </li></ul>
    47. 51. Sample FTC Label – Natural Gas Furnace
    48. 52. Sample FTC Label – Electric Furnace
    49. 53. Summary <ul><li>For More Information Contact </li></ul><ul><li>Jim Ranfone </li></ul><ul><li>AGA </li></ul><ul><li>202-824-7310 </li></ul><ul><li>[email_address] </li></ul>
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