## Qtougress of t}fe Nuiteil §tales Bns(fiitgton, ll<!r 20515

The Honorable Daniel B. Poneman Acting Secretary U.S. Department ofEnergy 1000 Independence Ave. SW Washington, DC 20585 Dear Acting Secretary Poneman: May 17, 2013

We are writing to comment on the Department ofEnergy's (DOE) February 15, 2013 Notice of Proposed Rule Making (NOPR) regarding the proposed waiver for large-capacity electricresistance water heaters capable ofbeing used in demand response and thermal storage programs. It is important that DOE act to permit manufacturers to continue producing the water heaters used by hundreds ofutility load control programs across the country. We appreciate DOE's recognition ofthe importance ofdemand response and thermal storage to electricity consumers, to the reliability ofthe electric grid and to the integration ofrenewable resources into our nation's power supply. We also appreciate DOE's recognition ofthe need to mitigate the impact ofits 2010 efficiency standard on those programs. However, we believe DOE's current proposal falls well short ofthe mark. An annual waiver allowing the manufacturing ofonly a limited number of electric water heaters with the restrictive conditions in the proposal will not meet the needs ofmanufacturers, utilities, or their consumers - our constituents. We support demand response and the development ofalternative energy resources as a means of achieving energy efficiency standards. Utilities' demand response programs use large-capacity electric-resistance water heaters to increase the integration ofrenewable resources, decrease peak demand, and help stabilize the grid, all while lowering the cost of electricity to our constituent consumer-members. Used in this manner, electric resistance water heaters are helping achieve multiple energy objectives - something that would be all but eliminated with the proposed annual waiver ofthe new standard. DOE's proposed annual waiver in the recent NOPR provides insufficient certainty to ensure continued manufacturing capacity for demand response products, and will preclude new thermal storage programs to integrate additional renewable energy sources. A separate product class for

PRINTED ON RECYCLED PAPERgrid interactive water heaters, as expressly supported by numerous utilities, manufacturers, associations and several other members of Congress, would provide such certainty. In the alternative, a more realistic, 5-year waiver, without the limitations imposed in the NOPR, should be considered. We urge DOE to reconsider the proposed annual waiver process and reach a solution that is practical, allowing electric cooperatives and other utilities to continue to operate and expand their demand response programs while providing consumers with affordable hot water. On behalfofour constituents, manufacturers, and utilities, we appreciate your consideration ofour views and look forward to your response. Sincerely,

Spencer achus Member of Congress
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