Confined space

Was not sure where to post this or what to call it. Looking at the codes it would seem there are some errors in this installation. Gas water heater installed inside a bathroom closet right beside the electric air handler which draws air from inside the closet/bathroom. The closet does not have any vents that allow air from the outside. And if it did it would be counter productive. Does the code call for outside air venting for a gas water heater? and does this installation pose additional threats to safety?

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Do you have a better overall photo of the room?

No sorry. The room is very tiny so hard to get a wide angle

**[FONT=Optima-Bold][size=2] b. ALL AIR FROM OUTDOORS: **[/size][/FONT][FONT=Optima][size=2](see Figures 3-5)
The confined space shall be provided with two permanent
openings, one commencing within 12 inches of the top
and one commencing within 12 inches from the bottom
of the enclosure. The openings shall communicate directly,
or by ducts, with the outdoors or spaces (crawl or attic)
that freely communicate with the outdoors.

  1. When directly communicating with the outdoors, each
    opening shall have a minimum free area of 1 square inch
    per 4,000 Btu per hour of total input rating of all equipment
    in the enclosure. (See Figure 3.)
  2. When communicating with the outdoors through vertical
    ducts, each opening shall have a minimum free area of 1
    square inch per 4,000 Btu per hour of total input rating of
    all equipment in the enclosure. (See Figure 4.)
  3. When communicating with the outdoors through horizontal
    ducts, each opening shall have a minimum free area of
    1 square inch per 2,000 Btu per hour of total input rating
    of all equipment in the enclosure. (See Figure 5.)
  4. When ducts are used, they shall be of the same cross-sectional
    area as the free area of the openings to which they
    connect. The minimum short side dimension of rectangular
    air ducts shall not be less than 3 inches. (See Figure 5.)
  5. Louvers and Grilles: In calculating free area, consideration
    shall be given to the blocking effect of louvers, grilles or
    screens protecting openings. Screens used shall not be
    smaller than [/size][/FONT][FONT=Optima][size=1]1[/size][/FONT][FONT=Optima][size=2]⁄[/size][/FONT][FONT=Optima][size=1]4 [/size][/FONT][FONT=Optima][size=2]inch mesh. If the free area through a design
    of louver or grille is known, it should be used in calculating
    the size opening required to provide the free area
    specified. If the design and free area is not known, it may
    be assumed that wood louvers will be 20-25 percent free
    area and metal louvers and grilles will have 60-75 percent
    free area. Louvers and grilles shall be fixed in the open
    position or interlocked with the equipment so that they are
    opened automatically during equipment operation.
  6. Special Conditions Created by Mechanical Exhausting or
    Fireplaces: Operation of exhaust fans, ventilation systems,
    clothes dryers or fireplaces may create conditions requiring
    special attention to avoid unsatisfactory operation of
    installed gas utilization equipment.
    [/size][/FONT]***[FONT=Optima-BoldOblique][size=7][FONT=Optima-BoldOblique][size=7] Locating the New Water Heater (cont’d)
    *[/size][/FONT][/size][/FONT][FONT=Optima-Bold][size=2] Figure 2
    Figure 4
    Figure 5
    Figure 3
    **[/size][/FONT]