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 A

MENDMENT intended to be proposed by Mr. HOEVEN (for himself and Mr. PRYOR) Viz: On page 48, after line 16, add the following:

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SEC. 4

ll. GRID-ENABLED WATER HEATERS. 2 Part B of title III of the Energy Policy and Conserva3 tion Act (42 U.S.C. 6291 et seq.) is amended— 4 (1) in section 325(e), by adding at the end the 5 following: 6 ‘‘(6) A DDITIONAL STANDARDS FOR GRID

- EN

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ABLED WATER HEATERS .— 8 ‘‘(A) D EFINITIONS .—In this paragraph: 9 ‘‘(i) ACTIVATION KEY.—The term ‘ac10 tivation key’ means a physical device or 112 WEI13737 S.L.C.

control directly on the water heater, a soft1 ware code, or a digital communication 2

means— 3 ‘‘(I) that must be activated to en4 able the product to operate continu5 ously and at its designed specifica6 tions and capabilities; and 7 ‘‘(II) without which activation 8 the product will provide not greater 9 than 50 percent of the rated first 10 hour delivery of hot water certified by 11 the manufacturer. 12 ‘‘(ii) GRID

- ENABLED WATER HEAT

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ER.—The term ‘grid-enabled water heater’ 14 means an electric resistance water heat15

er— 16 ‘‘(I) with a rated storage tank 17 volume of more than 75 gallons; 18 ‘‘(II) manufactured on or after 19 April 16, 2015; 20 ‘‘(III) that has— 21 ‘‘(aa) an energy factor of 22 not less than 1.061 minus the 23 product obtained by multi24 plying— 253 WEI13737 S.L.C.

‘‘(AA) the rated storage 1 volume of the tank, ex2 pressed in gallons; and 3 ‘‘(BB) 0.00168; or 4 ‘‘(bb) an efficiency level 5 equivalent to the energy factor 6 under item (aa) and expressed as 7 a uniform energy descriptor 8 based on the revised test proce9 dure for water heaters described 10 in paragraph (5); 11 ‘‘(IV) equipped by the manufac12 turer with an activation key; and 13 ‘‘(V) that bears a permanent 14 label applied by the manufacturer 15
that— 16 ‘‘(aa) is made of material 17 not adversely affected by water; 18 ‘‘(bb) is attached by means 19 of non-water-soluble adhesive; 20
and 21 ‘‘(cc) advises purchasers and 22 end-users of the intended and ap23 propriate use of the product with 24 the following notice printed in 254 WEI13737 S.L.C.

16.5 point Arial Narrow Bold 1 font: 2 ‘‘ ‘IMPORTANT INFORMATION: This water heater is 3 intended only for use as part of an electric thermal storage 4 or demand response program. It will not provide adequate 5 hot water unless enrolled in such a program and activated 6 by your utility company or another program operator. 7 Confirm the availability of a program in your local area 8 before purchasing or installing this product.’. 9 ‘‘(B) REQUIREMENT .—The manufacturer 10 or private labeler shall provide the activation 11 key only to utilities or other companies oper12 ating electric thermal storage or demand re13 sponse programs that use grid-enabled water 14
heaters. 15 ‘‘(C) REPORTS .— 16 ‘‘(i) M ANUFACTURERS .—The Sec17 retary shall require each manufacturer of 18 grid-enabled water heaters to report to the 19 Secretary annually the number of grid-en20 abled water heaters that the manufacturer 21 ships each year. 22 ‘‘(ii) OPERATORS .—The Secretary 23 shall require utilities and other demand re24 sponse and thermal storage program oper- 255 WEI13737 S.L.C.

ators to report annually the number of 1 grid-enabled water heaters activated for 2 their programs using forms of the Energy 3 Information Agency or using such other 4 mechanism that the Secretary determines 5 appropriate after an opportunity for notice 6
and comment. 7 ‘‘(iii) C ONFIDENTIALITY REQUIRE

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MENTS .—The Secretary shall treat ship9 ment data reported by manufacturers as 10 confidential business information. 11 ‘‘(D) PUBLICATION OF INFORMATION .— 12 ‘‘(i) IN GENERAL .—In 2017 and 13 2019, the Secretary shall publish an anal14 ysis of the data collected under subpara15 graph (C) to assess the extent to which 16 shipped products are put into use in de17 mand response and thermal storage pro18
grams. 19 ‘‘(ii) PREVENTION OF PRODUCT DI

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VERSION .—If the Secretary determines 21 that sales of grid-enabled water heaters ex22 ceed by 15 percent or greater the number 23 of such products activated for use in de24 mand response and thermal storage pro- 256 WEI13737 S.L.C.

grams annually, the Secretary shall, after 1 opportunity for notice and comment, estab2 lish procedures to prevent product diver3 sion for non-program purposes. 4 ‘‘(E) C OMPLIANCE .— 5 ‘‘(i) IN GENERAL .—Subparagraphs 6 (A) through (D) shall remain in effect 7 until the Secretary determines under this 8 section that grid-enabled water heaters do 9 not require a separate efficiency require10
ment. 11 ‘‘(ii) E FFECTIVE DATE .—If the Sec12 retary exercises the authority described in 13 clause (i) or amends the efficiency require14 ment for grid-enabled water heaters, that 15 action will take effect on the date de16 scribed in subsection (m)(4)(A)(ii). 17 ‘‘(iii) C ONSIDERATION .—In carrying 18 out this section with respect to electric 19 water heaters, the Secretary shall consider 20 the impact on thermal storage and demand 21 response programs, including the con22 sequent impact on energy savings, electric 23 bills, electric reliability, integration of re24 newable resources, and the environment. 257 WEI13737 S.L.C.

‘‘(iv) REQUIREMENTS .—In carrying 1 out this subparagraph, the Secretary shall 2 require that grid-enabled water heaters be 3 equipped with communication capability to 4 enable the grid-enabled water heaters to 5 participate in ancillary services programs if 6 the Secretary determines that the tech7 nology is available, practical, and cost-ef8 fective.’’; and 9 (2) in section 332— 10 (A) in paragraph (5), by striking ‘‘or’’ at 11 the end; 12 (B) in the first paragraph (6), by striking 13 the period at the end and inserting a semicolon; 14 (C) by redesignating the second paragraph 15 (6) as paragraph (7); 16 (D) in subparagraph (B) of paragraph (7) 17 (as so redesignated), by striking the period at 18 the end and inserting ‘‘; or’’; and 19 (E) by adding at the end the following: 20 ‘‘(8) with respect to grid-enabled water heaters 21 that are not used as part of an electric thermal stor22 age or demand response program, for any person 23 knowingly and repeatedly— 248 WEI13737 S.L.C.

‘‘(A) to distribute activation keys for those 1 grid-enabled water heaters; 2 ‘‘(B) otherwise to enable the full operation 3 of those grid-enabled water heaters; or 4 ‘‘(C) to remove or render illegible the la5 bels of those grid-enabled water heaters.’’. 6