WEI13737 S.L.C. 

AMENDMENT NO.llll Calendar No.lll 

Purpose: To modify the efficiency standards for grid-enabled 

water heaters. 

IN THE SENATE OF THE UNITED STATES—113th Cong., 1st Sess. 

S. 1392 

To promote energy savings in residential buildings and 

industry, and for other purposes. 

Referred to the Committee on llllllllll and 

ordered to be printed 

Ordered to lie on the table and to be printed 

AMENDMENT intended to be proposed by Mr. HOEVEN (for 

himself and Mr. PRYOR) 

Viz: 

1 On page 48, after line 16, add the following: 

2 SEC. 4ll. GRID-ENABLED WATER HEATERS. 

3 Part B of title III of the Energy Policy and Conserva4 tion Act (42 U.S.C. 6291 et seq.) is amended— 

5 (1) in section 325(e), by adding at the end the 

6 following: 

7 ‘‘(6) ADDITIONAL STANDARDS FOR GRID-EN8 ABLED WATER HEATERS.— 

9 ‘‘(A) DEFINITIONS.—In this paragraph: 

10 ‘‘(i) ACTIVATION KEY.—The term ‘ac11 tivation key’ means a physical device or 
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1 control directly on the water heater, a soft2 ware code, or a digital communication 

3 means— 

4 ‘‘(I) that must be activated to en5 able the product to operate continu6 ously and at its designed specifica7 tions and capabilities; and 

8 ‘‘(II) without which activation 

9 the product will provide not greater 

10 than 50 percent of the rated first 

11 hour delivery of hot water certified by 

12 the manufacturer. 

13 ‘‘(ii) GRID-ENABLED WATER HEAT14 ER.—The term ‘grid-enabled water heater’ 

15 means an electric resistance water heat16 er— 

17 ‘‘(I) with a rated storage tank 

18 volume of more than 75 gallons; 

19 ‘‘(II) manufactured on or after 

20 April 16, 2015; 

21 ‘‘(III) that has— 

22 ‘‘(aa) an energy factor of 

23 not less than 1.061 minus the 

24 product obtained by multi25 plying— 
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1 ‘‘(AA) the rated storage 

2 volume of the tank, ex3 pressed in gallons; and 

4 ‘‘(BB) 0.00168; or 

5 ‘‘(bb) an efficiency level 

6 equivalent to the energy factor 

7 under item (aa) and expressed as 

8 a uniform energy descriptor 

9 based on the revised test proce10 dure for water heaters described 

11 in paragraph (5); 

12 ‘‘(IV) equipped by the manufac13 turer with an activation key; and 

14 ‘‘(V) that bears a permanent 

15 label applied by the manufacturer 

16 that— 

17 ‘‘(aa) is made of material 

18 not adversely affected by water; 

19 ‘‘(bb) is attached by means 

20 of non-water-soluble adhesive; 

21 and 

22 ‘‘(cc) advises purchasers and 

23 end-users of the intended and ap24 propriate use of the product with 

25 the following notice printed in 
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WEI13737 S.L.C. 

1 16.5 point Arial Narrow Bold 

2 font: 

3 ‘‘ ‘IMPORTANT INFORMATION: This water heater is 

4 intended only for use as part of an electric thermal storage 

5 or demand response program. It will not provide adequate 

6 hot water unless enrolled in such a program and activated 

7 by your utility company or another program operator. 

8 Confirm the availability of a program in your local area 

9 before purchasing or installing this product.’. 

10 ‘‘(B) REQUIREMENT.—The manufacturer 

11 or private labeler shall provide the activation 

12 key only to utilities or other companies oper13 ating electric thermal storage or demand re14 sponse programs that use grid-enabled water 

15 heaters. 

16 ‘‘(C) REPORTS.— 

17 ‘‘(i) MANUFACTURERS.—The Sec18 retary shall require each manufacturer of 

19 grid-enabled water heaters to report to the 

20 Secretary annually the number of grid-en21 abled water heaters that the manufacturer 

22 ships each year. 

23 ‘‘(ii) OPERATORS.—The Secretary 

24 shall require utilities and other demand re25 sponse and thermal storage program oper-
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1 ators to report annually the number of 

2 grid-enabled water heaters activated for 

3 their programs using forms of the Energy 

4 Information Agency or using such other 

5 mechanism that the Secretary determines 

6 appropriate after an opportunity for notice 

7 and comment. 

8 ‘‘(iii) CONFIDENTIALITY REQUIRE9 MENTS.—The Secretary shall treat ship10 ment data reported by manufacturers as 

11 confidential business information. 

12 ‘‘(D) PUBLICATION OF INFORMATION.— 

13 ‘‘(i) IN GENERAL.—In 2017 and 

14 2019, the Secretary shall publish an anal15 ysis of the data collected under subpara16 graph (C) to assess the extent to which 

17 shipped products are put into use in de18 mand response and thermal storage pro19 grams. 

20 ‘‘(ii) PREVENTION OF PRODUCT DI21 VERSION.—If the Secretary determines 

22 that sales of grid-enabled water heaters ex23 ceed by 15 percent or greater the number 

24 of such products activated for use in de25 mand response and thermal storage pro-
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WEI13737 S.L.C. 

1 grams annually, the Secretary shall, after 

2 opportunity for notice and comment, estab3 lish procedures to prevent product diver4 sion for non-program purposes. 

5 ‘‘(E) COMPLIANCE.— 

6 ‘‘(i) IN GENERAL.—Subparagraphs 

7 (A) through (D) shall remain in effect 

8 until the Secretary determines under this 

9 section that grid-enabled water heaters do 

10 not require a separate efficiency require11 ment. 

12 ‘‘(ii) EFFECTIVE DATE.—If the Sec13 retary exercises the authority described in 

14 clause (i) or amends the efficiency require15 ment for grid-enabled water heaters, that 

16 action will take effect on the date de17 scribed in subsection (m)(4)(A)(ii). 

18 ‘‘(iii) CONSIDERATION.—In carrying 

19 out this section with respect to electric 

20 water heaters, the Secretary shall consider 

21 the impact on thermal storage and demand 

22 response programs, including the con23 sequent impact on energy savings, electric 

24 bills, electric reliability, integration of re25 newable resources, and the environment. 
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1 ‘‘(iv) REQUIREMENTS.—In carrying 

2 out this subparagraph, the Secretary shall 

3 require that grid-enabled water heaters be 

4 equipped with communication capability to 

5 enable the grid-enabled water heaters to 

6 participate in ancillary services programs if 

7 the Secretary determines that the tech8 nology is available, practical, and cost-ef9 fective.’’; and 

10 (2) in section 332— 

11 (A) in paragraph (5), by striking ‘‘or’’ at 

12 the end; 

13 (B) in the first paragraph (6), by striking 

14 the period at the end and inserting a semicolon; 

15 (C) by redesignating the second paragraph 

16 (6) as paragraph (7); 

17 (D) in subparagraph (B) of paragraph (7) 

18 (as so redesignated), by striking the period at 

19 the end and inserting ‘‘; or’’; and 

20 (E) by adding at the end the following: 

21 ‘‘(8) with respect to grid-enabled water heaters 

22 that are not used as part of an electric thermal stor23 age or demand response program, for any person 

24 knowingly and repeatedly— 
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1 ‘‘(A) to distribute activation keys for those 

2 grid-enabled water heaters; 

3 ‘‘(B) otherwise to enable the full operation 

4 of those grid-enabled water heaters; or 

5 ‘‘(C) to remove or render illegible the la6 bels of those grid-enabled water heaters.’’.