.1. 

REPRESENTATIVE MIKE KELLY C'2_MMITTEE ON WAYS AND MEAN.S, 

THIRD DISTRICT, PENNSYLVANIA 

CO-CHAIRMAN OF 

NORTHEAST-MIDWEST CAUCUS 

CO-CHAIRMAN OF 

KOREAN CAUCUS 

June 5, 2013 

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OOtla~blngton, 1JB<tC 20515 

The Honorable Ernest Moniz 

Secretary 

U.S. Department of Energy 

1000 Independence Ave. SW 

Washington, DC 20585 

Dear Secretary Moniz: 

SUBCOMMITTEE ON HUMAN RESOURCES 

SUBCOMMITTEE ON SOCIAL SECURITY 

SUBCOMMITTEE ON OVERSIGHT 

I am writing to comment on the Department of Energy's (DOE) February 15, 2013 Notice of Proposed 

Rule Making (NOPR) regarding the proposed waiver for large capacity electric resistance water heaters 

capable of being used in demand response and thermal storage programs. I appreciate DOE's 

recognition of the importance of demand response and thermal storage to electricity consumers, to the 

reliability of the electric grid, as well as, DOE's recognition of the need to mitigate the impact of its 2010 

efficiency standard on those programs. 

DO E's current proposal falls short of the mark. It is important DOE act to permit manufacturers to 

continue producing the water heaters used by hundreds of utility load control programs across the 

country. An annual waiver allowing the manufacturing of only a limited number of electric water heaters 

with the restrictive conditions in the proposal will not meet the needs of manufacturers, utilities, or 

their consumers - my constituents. 

DO E'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 grid 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. 

I urge DOE to reconsider the proposed annual waiver process and reach a practical solution, allowing 

electric cooperatives and utilities to continue operating and expanding their demand response programs 

while providing consumers with affordable hot water. On behalf of my constituents, manufacturers, and 

utilities, I appreciate your consideration of my views and look forward to your response. 

Sincerely, 

Mike Kelly 

Member of Congress 

1519 LONGWORTH HOUSE OFFICE BUILDING 

WASHINGTON, DC 20515 

TEL.: (202) 225-5406 

FAx: (202) 225-3103 

208 EAST BAYFRONT PARKWAY 

SUITE 102 

ERIE, PA 16507 

TEL.: (814) 454-8190 

FAX: (814) 454-8197 

101 EAST DIAMOND STREET 

SUITE218 

BUTLER, PA 16001 

TEL.: (724) 282-2557 

FAX: (724) 282-3682 

33 CHESTNUT AVENUE 

SHARON, PA 16146 

TEL: (724) 342-7170 

FAX: (724) 342-7242 
RESENTATIVES 41/A 

20515-3803 

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RECEIVED 

JUN 11 2013 

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