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How to run NM-B (romex) from exterior sub-panel and comply with NEC

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How should NM-B wire (romex) be run from an exterior panel to comply with California Electric Code 2019 (based on NEC 2017)?

Here are two ideas:

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Option 1: run THWN through an LB into an 8x8 box in the crawlspace, where the THWN is spliced (wirenuts) to NM-B romex. This avoids running the NM-B in exterior conduit, which is not allowed as it a 'wet location'

Option 2: run THWN through a nipple directly out the back of the panel box, into an 8x8 box in the crawlspace with same splicing to NM-B as Option 1.

Questions:

  1. Do both of these comply with California Electric Code 2019 (based on NEC 2017)?
  2. For Option 2, what fitting would be used between the nipple and the back of the panel to prevent water ingress? (see orange mark for location). Would that require extra siding to be removed to accommodate the fitting to allow the panel to sit flush?
  3. Is there a code compliant 'Option 2b' where no splicing is needed, and the the NM-B runs directly into the subpanel?
  4. Any better ideas?

I'm assuming I don't need to derate the ampacity of the THWN in either case, as the distance from panel to the box is <24", so no derating is required.

I'm curious - if the nipple/conduit in these designs is considered a 'wet location', then why is the 8x8 box not? Is it because any water in the conduit is assumed to drain out the bottom of the box without mixing with the wires? Just curious.


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