If I remember right he has a Marantz SR5010, and that has maximum volume of +18, that means he can go above reference. It also depends on the recording/mastering level of the source material.
Another thing I am not 100% about is how exactly THX defines that 20 dB peak, do they mean maximum SPL average, or maximum SPL peak in the source material, i.e. movie (same principle applies to music too, just different numbers)? This may sound crazy but you never know until you see the definition in fine print. I googled this very hard and came up with nothing, time to give them a call but I doubt they know that too.

To me, peaks are peaks, and it should mean just that literally. So hopefully whenever someone (from THX and other standards committees etc.) refers to "peak" they mean the absolute maximum peak of the signal, not the maximum average of the signal in the material.
I don't ever listen to reference level myself, though it is nice to be at least 20 dB below the amp's clipping point regardless of what I listen to.