If you are cooking anything that generates grease-laden vapors (typically meat, deep fat frying, wok sauté, etc.) you are required to install a Type 1 hood. If you are baking, boiling water, warming, or using a press (panini, grilled cheese) you are required to install a Type 2 hood. If you are just serving hot beverages and re-heating in a microwave oven, no hood is required.