I have a nursing home design that requires a back-up generator for essential systems. Looking at FPN Figure 517.41, No.2 (2005 NEC), I need to keep the life safety and critical branches separate, but can use one ATS (less than 150KVA system.) The '05 Handbook Exhibit 700.1 indicates a switchboard used to separate the emergency loads from legally required loads, etc. They claim that a switchboard can separate the wiring physically (unlike a panel board, which has an open design.) This diagram shows the switchboard at the generator, but I am assuming a switchboard would be required in Figure 517.41, as well. I'd like to delete the switchboard all-together by using a double-lug rated ATS to feed two separate panel boards - Life Safety and Critical. Of course, we would have separate conduits for the two feeders. Do you see anything wrong with this?