TITLE II—GRID-ENABLED WATER 
HEATERS 
SEC. 201. GRID-ENABLED WATER HEATERS. 
Part B of title III of the Energy Policy and Conserva-
tion Act is amended— 
(1) in section 325(e) (42 U.S.C. 6295(e)), by 
adding at the end the following: 
‘‘(6) ADDITIONAL
STANDARDS
FOR
GRID-EN-
ABLED WATER HEATERS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) ACTIVATION
LOCK.—The term 
‘activation lock’ means a control mecha-
nism (either a physical device directly on 
the water heater or a control system inte-
grated into the water heater) that is locked 
by default and contains a physical, soft-
ware, or digital communication that must 
be activated with an activation key to en-
able the product to operate at its designed 
specifications and capabilities and without 
which activation the product will provide 
not greater than 50 percent of the rated 
first hour delivery of hot water certified by 
the manufacturer. 
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‘‘(ii) GRID-ENABLED
WATER
HEAT-
ER.—The term ‘grid-enabled water heater’ 
means an electric resistance water heater 
that— 
‘‘(I) has a rated storage tank vol-
ume of more than 75 gallons; 
‘‘(II) is manufactured on or after 
April 16, 2015; 
‘‘(III) has— 
‘‘(aa) an energy factor of 
not less than 1.061 minus the 
product 
obtained 
by 
multi-
plying— 
‘‘(AA) the rated storage 
volume of the tank, ex-
pressed in gallons; and 
‘‘(BB) 0.00168; or 
‘‘(bb) an equivalent alter-
native standard prescribed by the 
Secretary and developed pursu-
ant to paragraph (5)(E); 
‘‘(IV) is equipped at the point of 
manufacture with an activation lock; 
and 
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‘‘(V) bears a permanent label ap-
plied by the manufacturer that— 
‘‘(aa) is made of material 
not adversely affected by water; 
‘‘(bb) is attached by means 
of 
non-water-soluble 
adhesive; 
and 
‘‘(cc) advises purchasers and 
end-users of the intended and ap-
propriate use of the product with 
the following notice printed in 
16.5 point Arial Narrow Bold 
font: 
‘‘ ‘IMPORTANT INFORMATION: This water heater is 
intended only for use as part of an electric thermal storage 
or demand response program. It will not provide adequate 
hot water unless enrolled in such a program and activated 
by your utility company or another program operator. 
Confirm the availability of a program in your local area 
before purchasing or installing this product.’. 
‘‘(B) REQUIREMENT.—The manufacturer 
or private labeler shall provide the activation 
key for a grid-enabled water heater only to a 
utility or other company that operates an elec-
tric thermal storage or demand response pro-
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gram that uses such a grid-enabled water heat-
er. 
‘‘(C) REPORTS.— 
‘‘(i) 
MANUFACTURERS.—The 
Sec-
retary shall require each manufacturer of 
grid-enabled water heaters to report to the 
Secretary annually the quantity of grid-en-
abled water heaters that the manufacturer 
ships each year. 
‘‘(ii) 
OPERATORS.—The 
Secretary 
shall require utilities and other demand re-
sponse and thermal storage program oper-
ators to report annually the quantity of 
grid-enabled water heaters activated for 
their programs using forms of the Energy 
Information Agency or using such other 
mechanism that the Secretary determines 
appropriate after an opportunity for notice 
and comment. 
‘‘(iii) 
CONFIDENTIALITY
REQUIRE-
MENTS.—The Secretary shall treat ship-
ment data reported by manufacturers as 
confidential business information. 
‘‘(D) PUBLICATION OF INFORMATION.— 
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‘‘(i) IN
GENERAL.—In 2017 and 
2019, the Secretary shall publish an anal-
ysis of the data collected under subpara-
graph (C) to assess the extent to which 
shipped products are put into use in de-
mand response and thermal storage pro-
grams. 
‘‘(ii) PREVENTION
OF
PRODUCT
DI-
VERSION.—If the Secretary determines 
that sales of grid-enabled water heaters ex-
ceed by 15 percent or greater the quantity 
of such products activated for use in de-
mand response and thermal storage pro-
grams annually, the Secretary shall, after 
opportunity for notice and comment, estab-
lish procedures to prevent product diver-
sion for non-program purposes. 
‘‘(E) COMPLIANCE.— 
‘‘(i) 
IN
GENERAL.—Subparagraphs 
(A) through (D) shall remain in effect 
until the Secretary determines under this 
section that— 
‘‘(I) grid-enabled water heaters 
do not require a separate efficiency 
requirement; or 
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‘‘(II) sales of grid-enabled water 
heaters exceed by 15 percent or great-
er the quantity of such products acti-
vated for use in demand response and 
thermal storage programs annually 
and procedures to prevent product di-
version for non-program purposes 
would not be adequate to prevent such 
product diversion. 
‘‘(ii) EFFECTIVE DATE.—If the Sec-
retary exercises the authority described in 
clause (i) or amends the efficiency require-
ment for grid-enabled water heaters, that 
action will take effect on the date de-
scribed in subsection (m)(4)(A)(ii). 
‘‘(iii) CONSIDERATION.—In carrying 
out this section with respect to electric 
water heaters, the Secretary shall consider 
the impact on thermal storage and demand 
response programs, including any impact 
on energy savings, electric bills, peak load 
reduction, electric reliability, integration of 
renewable resources, and the environment. 
‘‘(iv) REQUIREMENTS.—In carrying 
out this paragraph, the Secretary shall re-
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quire that grid-enabled water heaters be 
equipped with communication capability to 
enable the grid-enabled water heaters to 
participate in ancillary services programs if 
the Secretary determines that the tech-
nology is available, practical, and cost-ef-
fective.’’; 
(2) in section 332(a) (42 U.S.C. 6302(a))— 
(A) in paragraph (5), by striking ‘‘or’’ at 
the end; 
(B) in the first paragraph (6), by striking 
the period at the end and inserting a semicolon; 
(C) by redesignating the second paragraph 
(6) as paragraph (7); 
(D) in subparagraph (B) of paragraph (7) 
(as so redesignated), by striking the period at 
the end and inserting ‘‘; or’’; and 
(E) by adding at the end the following: 
‘‘(8) for any person— 
‘‘(A) to activate an activation lock for a 
grid-enabled water heater with knowledge that 
such water heater is not used as part of an 
electric thermal storage or demand response 
program; 
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‘‘(B) to distribute an activation key for a 
grid-enabled water heater with knowledge that 
such activation key will be used to activate a 
grid-enabled water heater that is not used as 
part of an electric thermal storage or demand 
response program; 
‘‘(C) to otherwise enable a grid-enabled 
water heater to operate at its designed speci-
fication and capabilities with knowledge that 
such water heater is not used as part of an 
electric thermal storage or demand response 
program; or 
‘‘(D) to knowingly remove or render illegi-
ble the label of a grid-enabled water heater de-
scribed in section 325(e)(6)(A)(ii)(V).’’; 
(3) in section 333(a) (42 U.S.C. 6303(a))— 
(A) by striking ‘‘section 332(a)(5)’’ and in-
serting ‘‘paragraph (5), (6), (7), or (8) of sec-
tion 332(a)’’; and 
(B) by striking ‘‘paragraph (1), (2), or (5) 
of section 332(a)’’ and inserting ‘‘paragraph 
(1), (2), (5), (6), (7), or (8) of section 332(a)’’; 
and 
(4) in section 334 (42 U.S.C. 6304)— 
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(A) by striking ‘‘section 332(a)(5)’’ and in-
serting ‘‘paragraph (5), (6), (7), or (8) of sec-
tion 332(a)’’; and 
(B) by striking ‘‘section 332(a)(6)’’ and in-
serting ‘‘section 332(a)(7)’’. 
TITLE 
III—ENERGY 
INFORMA-
TION 
FOR 
COMMERCIAL 
BUILDINGS 
SEC. 301. ENERGY INFORMATION FOR COMMERCIAL BUILD-
INGS. 
(a) REQUIREMENT OF BENCHMARKING AND DISCLO-
SURE FOR LEASING BUILDINGS WITHOUT ENERGY STAR 
LABELS.—Section 435(b)(2) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17091(b)(2)) is 
amended— 
(1) by striking ‘‘paragraph (2)’’ and inserting 
‘‘paragraph (1)’’; and 
(2) by striking ‘‘signing the contract,’’ and all 
that follows through the period at the end and in-
serting the following: ‘‘signing the contract, the fol-
lowing requirements are met: 
‘‘(A) The space is renovated for all energy 
efficiency and conservation improvements that 
would be cost effective over the life of the lease, 
including improvements in lighting, windows, 
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and heating, ventilation, and air conditioning 
systems. 
‘‘(B)(i) Subject to clause (ii), the space is 
benchmarked under a nationally recognized, on-
line, free benchmarking program, with public 
disclosure, unless the space is a space for which 
owners cannot access whole building utility con-
sumption data, including spaces— 
‘‘(I) that are located in States with 
privacy laws that provide that utilities shall 
not provide such aggregated information to 
multitenant building owners; and 
‘‘(II) for which tenants do not provide 
energy consumption information to the 
commercial building owner in response to a 
request from the building owner. 
‘‘(ii) A Federal agency that is a tenant of 
the space shall provide to the building owner, or 
authorize the owner to obtain from the utility, 
the energy consumption information of the 
space for the benchmarking and disclosure re-
quired by this subparagraph.’’. 
(b) STUDY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of 
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Energy, in collaboration with the Administrator of 
the Environmental Protection Agency, shall complete 
a study— 
(A) on the impact of— 
(i) 
State 
and 
local 
performance 
benchmarking and disclosure policies, and 
any associated building efficiency policies, 
for commercial and multifamily buildings; 
and 
(ii) programs and systems in which 
utilities provide aggregated information re-
garding whole building energy consumption 
and usage information to owners of multi-
tenant commercial, residential, and mixed- 
use buildings; 
(B) that identifies best practice policy ap-
proaches studied under subparagraph (A) that 
have resulted in the greatest improvements in 
building energy efficiency; and 
(C) that considers— 
(i) compliance rates and the benefits 
and costs of the policies and programs on 
building owners, utilities, tenants, and 
other parties; 
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(ii) utility practices, programs, and 
systems that provide aggregated energy 
consumption information to multitenant 
building owners, and the impact of public 
utility commissions and State privacy laws 
on those practices, programs, and systems; 
(iii) exceptions to compliance in exist-
ing laws where building owners are not 
able to gather or access whole building en-
ergy information from tenants or utilities; 
(iv) the treatment of buildings with— 
(I) multiple uses; 
(II) uses for which baseline infor-
mation is not available; and 
(III) uses that require high levels 
of energy intensities, such as data 
centers, trading floors, and television 
studios; 
(v) implementation practices, includ-
ing disclosure methods and phase-in of 
compliance; 
(vi) 
the 
safety 
and 
security 
of 
benchmarking tools offered by government 
agencies, and the resiliency of those tools 
against cyber attacks; and 
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(vii) international experiences with re-
gard to building benchmarking and disclo-
sure laws and data aggregation for multi-
tenant buildings. 
(2) SUBMISSION TO CONGRESS.—At the conclu-
sion of the study, the Secretary shall submit to the 
Committee on Energy and Commerce of the House 
of Representatives and the Committee on Energy 
and Natural Resources of the Senate a report on the 
results of the study. 
(c) CREATION AND MAINTENANCE OF DATABASE.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act and following 
opportunity for public notice and comment, the Sec-
retary of Energy, in coordination with other relevant 
agencies, shall maintain, and if necessary create, a 
database for the purpose of storing and making 
available public energy-related information on com-
mercial and multifamily buildings, including— 
(A) data provided under Federal, State, 
local, and other laws or programs regarding 
building benchmarking and energy information 
disclosure; 
(B) information on buildings that have dis-
closed energy ratings and certifications; and 
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(C) energy-related information on buildings 
provided voluntarily by the owners of the build-
ings, only in an anonymous form unless the 
owner provides otherwise. 
(2) COMPLEMENTARY
PROGRAMS.—The data-
base maintained pursuant to paragraph (1) shall 
complement and not duplicate the functions of the 
Environmental Protection Agency’s Energy Star 
Portfolio Manager tool. 
(d) INPUT FROM STAKEHOLDERS.—The Secretary of 
Energy shall seek input from stakeholders to maximize the 
effectiveness of the actions taken under this section. 
(e) REPORT.—Not later than 2 years after the date 
of enactment of this Act, and every 2 years thereafter, 
the Secretary of Energy shall submit to the Committee 
on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of 
the Senate a report on the progress made in complying 
with this section. 
Æ 
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