7. NGAT Problems and Solutions
Background. NGAT is the process of testing the inside of a household for toxins such as carbon monoxide (CO) and other pollutants emitted by natural gas appliances.
D.03-11-020 adopted a two-prong NGAT process recommended by the parties. The NGAT process consisted of a pre-weatherization assessment61 using visual and olfactory cues (before any infiltration measures62 are installed) and an NGAT post-weatherization protocol that utilizes a room ambient CO test in the household with an operational gas appliance. Subsequently, the Commission approved the expansion of the pre-weatherization NGAT (pre-test) to be used as criteria for screening for the installation of infiltration reduction measures when a natural gas appliance problem existed and could not feasibly be corrected. D.01-03-028 reiterated the Commission's policy that the utilities should provide energy efficiency measures in ways that promote safe living environments.
Under the adopted NGAT process, if toxins are apparent in the environment, utilities do not install energy efficiency measures that would tighten up the air flow in the building and thereby contribute to a health or safety hazard. As a result, utilities only provide non-filtration measures to homes failing the NGAT.
R.07-01-042 stated our intent to consider problems that some believe arise with utility NGAT programs. Parties have expressed concern that ignoring the conditions in a residence that fails an NGAT test presents liabilities to the resident.
The Commission conducted workshops in this proceeding on NGAT and furnace programs on June 13, 2007 and June 25, 2007. The assigned ALJ subsequently issued a ruling on September 14, 2007, seeking the parties' responses to the following questions. (Questions in italics were directed at utilities only):
What are specific challenges associated with the current NGAT process?
How are low-income customers affected by the current NGAT process?
How can the utilities improve the current NGAT process? In that regard, what, if anything, would the Commission need to order the utilities to do?
How would each utility program modification affect customer bills, reduce energy use, or address customer health, safety and comfort?
How many residences in your territory received LIEE measures and services during 2006?
How many of the homes served with LIEE services in 2006 had problems with non-infiltration measures? The purpose of this question is related to non-equipment concerns.
How many of the homes served with LIEE services during 2006 were denied services due to an NGAT failure? The purpose of this question is to determine which homes had problems with the equipment itself.
When a house fails an NGAT, how does the utility coordinate with other programs such as LIHEAP?
On October 16, 2007, parties filed comments in response to the September 14, 2007 ruling and filed reply comments on October 26, 2007.
Parties' Comments.
Most parties did not point to any specific technical challenges associated with the current NGAT process. SDG&E and SoCalGas stated that some parties perceive incorrectly that the two NGAT processes conducted by the LIEE programs are complicated. PG&E considers being able to get back into homes for the second NGAT as its greatest challenge with the NGAT process. Partly for this reason, SW Gas recommends a one-step process with a full NGAT prior to infiltration measures being installed.
ACCES and A WISH emphasized their common concern with the limitations of the existing NGAT rules and process which preclude the installation of remedial measures and the certain energy efficiency measures. ACCES claims that rented homes that are not eligible for repair or replacement of furnaces and water heaters as a result of NGAT failure are exposed to hazardous conditions. ACCES and A WISH recommend that the Commission reexamine the reasons for declaring renters ineligible for water heater and furnace repair and replacement. PG&E specifies that owner-occupied homes failing NGAT may be eligible to receive repairs or replacement appliances. In cases where a renter's home has failed NGAT, SDG&E and SoCalGas note that they notify the landlord or owner of the action taken by the utility.
PG&E claims that approximately 10% of the homes it treated in 2006 received only non-infiltration measures due to the homes failing NGAT. Prior to the adoption of current NGAT processes, PG&E used a flue test to identify hazardous appliances. PG&E recommends the Commission reverse its 2003 decision, which eliminated the flue test. PG&E believes the flue test would allow the utility to identify inefficient and unsafe appliances better than the current tests.
SDG&E and SoCalGas would retain the current NGAT process, believing that it ensures that all low-income homes serviced by the LIEE program are left in a safe and non-hazardous condition. However, SDG&E and SoCalGas believe that if any modifications to the process are needed, a team of technical experts should evaluate the impacts of any changes prior to adoption.
ACCES and A WISH recommend that contractors should be allowed to correct the problem even if the correction requires replacement or relocation of the furnace. Alternatively, these parties suggest grandfathering of homes with furnaces installed in conformance with earlier code requirements. ACCES and A WISH propose that the Commission direct utilities to fix the problems. Additionally, repairing or replacing furnaces and water heaters in all households-renters and owners-promotes comfort, health, and safety and contributes to gas emission reduction.
SWGas suggests the incorporation of recommendations developed during the June 2007 workshop into the current practices and protocols. Additionally, SWGas recommends the adoption of the proposed changes to the NGAT standards to correct inconsistent language and increased Commission direction to the utilities regarding LIEE policies and procedures when questions and problems arise.
Discussion
D.03-11-020 stated that "the important issue for the safety of low-income customers receiving weatherization services is to ensure that the utility's inspection and response procedures effectively protect all LIEE program participants from potentially hazardous situations in the home." The Commission subsequently adopted a consultant report endorsing the current two prong process for NGAT, which the utilities still use. This procedure protects customers from potential harm but limits the number of homes that can receive energy efficient measures.
We have two separate issues to address: (1) whether the utilities should treat renters and homeowners alike with regard to the NGAT process and therefore permit appliance repair or replacement when necessary; and (2) whether the NGAT process should be modified to permit renters to receive infiltration measures when NGAT failure has occurred.
We are not convinced that utility ratepayers should assume the costs of appliance repairs and replacements. Section 1941.1 of the California Civil Code requires landlords to provide space heating and hot water to renters. California law also requires landlords to be responsible for certain household repairs, to assure the unit is habitable and to repair problems that make the unit uninhabitable.63 It is the landlord's responsibility to assure rental property is safe.
On the question of whether the utilities should install infiltration measures where the property fails the NGAT, we are not prepared to modify existing policy because of our concerns over resident safety. Accordingly, the utilities shall continue to employ the NGAT protocols adopted in D.03-11-020, both for rental and owner-occupied households.
In its comments, SW Gas suggests the incorporation of recommendations from the June 2007 workshop for some technical revisions. The record here does not provide enough information for us to order their implementation, although the revisions appear thoughtful and may improve the existing procedures. We will direct the utilities to address these technical revisions in the Quarterly Public Meetings required by D.06-12-038. If the utilities wish to propose changes to the Weatherization and Installation Manuals as a result of those meetings, they should file for approval of those changes.
61 The following items are included in the NGAT pre-assessment: gas leaks; inadequate combustion ventilation air (CVA); inadequate clearance between water heater vent termination and evaporative cooler inlet; other improper flue/vent terminations; inoperable or inaccessible gas appliance; gas clothes dryer in the living space not exhausted outdoors; unvented combustion space heater in the living space; when a whole house fan is in the ceiling, gas water heater or open combustion furnace with sanding pilot in the attic; range with space heater/incinerator not vented outdoors; or open combustion water heater located in a sleeping area.
62 Infiltration reduction measures are those which seal or tighten the building envelope and reduce natural infiltration. These measures include caulking, door weather-stripping, cover plate gaskets, duct sealing and some items within minor home repair.
63 See Green v. Superior Court (1974) 10 Cal.3d 616 [111 Cal.Rptr. 704] which held that all residential leases and rental agreements contain an implied warranty of habitability. Under the "implied warranty of habitability," the landlord is legally responsible for repairing conditions that seriously affect the rental unit's habitability. That is, the landlord must repair substantial defects in the rental unit and substantial failures to comply with state and local building and health codes.
