Docket Number: EERE

ResWaterHtrsRFI‐2012‐STD

NOPR to Develop a Waiver Process for Large‐Volume Ele

W
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Welcome and Introduction• Introductions• Role of the Facilitator

• Ground Rules

– Listen as an ally

– Focus on issues

– Use short, succinct statements/keep to the point

– Hold sidebar conversations outside the room

– One person speaks at a time (raise hand to be recognized; state y

the record)

– Set cell phones to silent/vibrate

• Housekeeping Items

• Agenda Review

• Opening Remarks
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Public Meeting Agenda

Description of IssueOptions and Proposed ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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Listening Via the Webcast• The Department is broadcasting this meeting live over the inte

• DOE is providing the webcast to accommodate stakeholders th

unable to attend the public meeting in person.

• The web broadcast allows stakeholders to listen in and view th

• All stakeholders are encouraged to submit written comments a

public meeting.
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Purpose of the Public Meeting• Present and discuss the proposed waiver program for large‐vol

electric storage water heaters.

• Invite comment on the notice of proposed rulemaking for large

electric storage water heaters.

• Discuss next steps in the rulemaking.• Encourage participants to submit data, information, summary s

and written comments, including additional issues for discussio
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Request for Comment

Issue box numbering corresponds to the list of items published at 

the NOPR document, available at:

http://www1.eere.energy.gov/buildings/appliance_standards/pro

roductid/27The deadline for submitting comments is April 29, 2013.

Item: While DOE invites comment on all aspects of the materia

presentation and the NOPR document, several specific issues o

DOE seeks comment are set out in comment boxes like this one

uses these comment boxes to highlight issues and to ask specifi

questions on the approaches DOE plans to follow for this rulem

Such requests for feedback are numbered sequentially through

document.
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Opening Remarks

Meeting participants are invited to provide opening rem

or statements at this time. Please keep your remarks as 

as possible to give others a chance to speak.
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Public Meeting Agenda

Description of IssueOptions and Proposed ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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Statutory Authority and Regulatory History• Energy Policy and Conservation Act (EPCA) of 1975 (Public Law 

– Established the energy conservation program for consumer products othe

automobiles.

– Directs DOE to establish test procedures in conjunction with energy conse

standards.

– Further provides DOE with the authority to conduct rulemakings to deter

to amend standards.

• National Appliance Energy Conservation Act (NAECA) of 1987 (

100‐357)

– Established the energy conservation standards for water heaters. (42 U.S.

– Directed DOE to conduct two cycles of rulemakings to amend standards. (

6295(e)(4))

• On April 16, 2010, DOE published a final rule amending standa

residential water heaters. 75 FR 20112.

– Standards for electric storage water heaters with rated storage volumes >

were amended to levels that currently are achieved through the use of he

water heater (HPWH) technology. Standards will apply to products manu

after April 16, 2015.
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Public Meeting Agenda

Description of IssueOptions and Proposed Corrective ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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Steps in the Rulemaking Process

• DOE published a request for information (RFI) regarding the im

standards on utility electric thermal storage programs (ETS) on 

2012. 77 FR 35299.

• DOE published a NOPR on February 26, 2013. 78 FR 12969.

• DOE is holding the NOPR public meeting today, March 15, 2013

• DOE will accept comments on the NOPR from interested partie

− Oral comments from today’s meeting will be recorded and t

− Interested parties can submit written comments until April 

• DOE expects to publish a final rule later this year.

NOPR Final 

Rule

RFI
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Public Meeting Agenda

Description of IssueOptions and Proposed ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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Background – ETS Programs

• Electric Thermal Storage (ETS) programs allow utility companie

water heater operation remotely.

– Limit operation of heating elements to only “off‐peak” hours– Water heater stores energy for use during peak demand periods

– Used as a tool to manage peak load

– Benefit utilities by reducing peak generation capacity needs

– Allow for enhanced renewables integration

• Utility companies currently utilize large‐volume electric resista

heaters (ERWH) in ETS programs.

– Larger storage tanks provide additional storage capacity for “peak

when water heater cannot turn on.

– ERWH are able to store water at higher‐than‐normal temperature

stored energy for use during “peak” periods.
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Background – April 2010 Standards

Technology Change

Technology Change

Electric Resistance Water Heater 

(ERWH) Heat Pump Wa

(HPW

• April 2010 standard level for large-volume electric water hea

only achieved using heat pump water heater (HPWH) techn

• Efficiency ratings change (example): Raised minimum energy factor fo

electric water heater from 0.86 to 1.97.

• The standard currently cannot be met using conventional ele

resistance water heater (ERWH) technology.
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Description of Issue• Interested parties expressed concerns over the amended standard lev

volume, electric water heaters and the potential impacts on ETS progr

– Lack of ERWH availability may result in elimination of ETS programs for ec

technical reasons.

– HPWH and multiple smaller tanks are unlikely to be suitable replacements 

volume ERWH in ETS programs.

– Interested parties requested that DOE consider allowing for the manufact

volume ERHWs solely for ETS applications.

• The June 2012 RFI summarized concerns and sought comment on var

including:

– Information on the penetration of ETS programs utilizing ERWH in the U.S

– Effect of utility ETS programs, including economic benefits to consumers, 

benefits (if any), and other benefits to the Nation.

– Anticipated impacts of April 2010 standards on ETS program.

– Information on potential solutions that would mitigate concerns, includin

waiver process; Establishing a new product class for “grid interactive” ERW

such as multiple smaller water heaters or large volume HPWH.
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Comments received in response to June 2012 R

• DOE received 127 unique comments.

 111 from utility companies or associations; 6 from manufacturers; 

efficiency advocates; 1 from a trade association; 4 from U.S. Congr

• Majority of commenters supported DOE action to allow for the

manufacture of large‐volume ERWH for ETS programs.

‒ Some commenters supported a new product class for “Grid‐Intera

‒ Some commenters supported a waiver process.

• Two commenters opposed DOE action.

• One commenter took no position on whether DOE should act.

• Comments from utilities indicated that:

 630,00 consumers currently participate in ETS programs.

 ETS programs result in combined peak load reduction of 145 MW.

 ETS programs result in combined $60 million in annual consumer s

 Other benefits include: improved grid reliability; increased renewa

integration; reduced need for future generation capacity; increase

awareness about energy use.
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Public Meeting Agenda

Description of IssueOptions and Proposed ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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Options Considered

• Alternatives to large‐volume ERWH for use in ETS programs

‒ Large‐volume HPWH

 More study is needed to determine impacts of ETS usage patterns on H

functionality.

 Technological challenges meeting water temperatures required.

 Multiple small‐volume ERWH

 May have issues in space‐constrained installations due to larger footpr

large volume water heater.

 May require more complex controls systems.

• Waiver process
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Proposed Action: Waiver

• After considering all alternatives, DOE has tentatively determin

establishing a waiver process is the best option to address conc

companies while achieving DOE goals.

 Waiver provides maximum flexibility since it can be reviewed often 

technologies develop or new information becomes available.

 Waiver could be targeted at the affected portion of the market.

• Comments on RFI raised several concerns about a waiver system

 Some utilities cannot sell direct to consumers – proposal does not 

requirements for distribution chain.

 Homeowners may move or change mind about enrollment in utilit

proposal does not require that the homeowner have an agreemen

enrolled in a utility ETS program.

 DOE proposes other requirements to ensure the program is target
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Proposed Waiver Process

Request Requirements

Waiver Process Overview

Request Submitted to DOE

DOE Review and Approval

DOE Grants Waiver(if Requirements Met) Waiver Specifics

Notice published in the Federal Register

Specifies exaunits covered and alternativ

Requires unitbe shipped w

Utility must submit program information via EIA form

Must be a utility, manufacturer, or joint request

Include compinformation oinvolved in re

Describe control device. Device must be capable of receiving communication

Must provide units, manufamodel #, EF, 

Large-Volume ERWH Shipped with ETS Control Device Installed

Verify shipments through utility reporting on form EIA-861

Periodic Reviews of Waiver Process
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Proposed Waiver Process ‐ Applicant

 Applicant Requirements:

 A manufacturer of large‐volume electric storage water heat

 A utility program administering a demand response progra

 A joint application by the manufacturer and the utility.

 Application Requirements:

 The company and contact information of both the manufac

the utility programs involved must be provided as part of th

application.

DOE specifically seeks comment on the requirements for who ca

the waiver and the types of information about the parties involv

should be submitted as part of the waiver.
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Proposed Waiver Process – Controller

 Controller Requirements:

 Must be capable of receiving communications from the grid.

 Must be integrated and shipped with the unit from the point 

manufacturer of the water heater.

 The water heater must be clearly labeled and marketed for u

in ETS programs, including a description of the control device 

into the water heater, before it leaves the original equipment

manufacturer.

 Application Requirements:

 A full description of the control device along with accompany 

must be submitted as part of the waiver for each basic mode

used in the demand response program.

Item 1: DOE seeks comment on its proposal to require that th

which a waiver is granted are shipped from the manufacturer 

ETS control devices installed on the water heater. In addition, 

specifically seeks comment on the control requirements that 

the application process and the label that must be applied to 

heater.
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Proposed Waiver Process – Additional Require

 Basic Model Requirements:

 Application must include each manufacturer, brand, and ba

number combination.

 Application must include basic model characteristics includ

storage volume and energy factor.

 Utility Program Requirements

 Application must include a list of all programs a given basic 

participate in.

 Application must include an annual allotment value corresp

the number of shipments for a given basic model.

DOE seeks comment on the information that should be submitt

the waiver describing the basic model and utility program.
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Proposed Waiver Process – Utility Reporting

 DOE proposed to require that utilities submit information rega

demand response programs for large‐volume electric storage w

to EIA as part of their regular submissions.

 DOE will monitor the applications with the information submitt

EIA‐861 and EIA‐861S forms to ensure the program is targeted.

Item 2: DOE seeks comment on its proposal to add a question to forms EIA‐861S that would read as follows: “If you have a demand side manag

program for electric storage water heaters, how many electric storage w

with storage volumes above 55 gallons were utilized in your program th
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Requests for Comment

Item 3: DOE also seeks information concerning the impacts of the propos

process on all parties, and in particular small business manufacturers tha

impacted by this rulemaking. DOE is interested in the nature and extent o

potential impacts of the proposed waiver process.
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Public Meeting Agenda

Description of IssueOptions and Proposed ActionClosing Remarks

4562 Regulatory History3 Rulemaking Overview

1 Introduction
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How to Submit Written Comments• In all correspondence, please refer to the residential water heater rule

 Residential Water Heater Rulemaking

 Docket Number EERE‐2012‐BT‐STD‐0022

 Regulatory Identification Number (RIN) 1904‐AC78

• Email: ResWaterHtrsRFI‐2012‐STD‐0022@ee.doe.gov

Postal: Courier:

Ms. Brenda Edwards

U.S. Department of Energy

Building Technologies Program, Mailstop EE‐2J

1000 Independence Avenue, SWWashington, DC 20585‐0121

Ms. Brenda Edwards

U.S. Department of Energy

Building Technologies Progra

950 L’Enfant Plaza, SWWashington, DC 20024

Tel: 202 586‐2945

Comment period closes: April 29, 2013