I 
113TH CONGRESS 
2D SESSION 
H. R. 4066 
To modify the efficiency standards for grid-enabled water heaters. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 18, 2014 
Mr. WHITFIELD (for himself, Mr. LATTA, Mr. WELCH, and Mr. MATHESON) 
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce 
A BILL 
To modify the efficiency standards for grid-enabled water 
heaters. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. GRID-ENABLED WATER HEATERS. 
Part B of title III of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6291 et seq.) 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: 
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‘‘(i) ACTIVATION KEY.—The term ‘ac-
tivation key’ means a physical device or 
control directly on the water heater, a soft-
ware code, or a digital communication— 
‘‘(I) that must be activated to en-
able the product to operate continu-
ously and at its designed specifica-
tions and capabilities; and 
‘‘(II) 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. 
‘‘(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 
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product 
obtained 
by 
multi-
plying— 
‘‘(AA) the rated storage 
volume of the tank, ex-
pressed in gallons; and 
‘‘(BB) 0.00168; or 
‘‘(bb) 
an 
efficiency 
level 
equivalent to the energy factor 
under item (aa) and expressed as 
a 
uniform 
energy 
descriptor 
based on the revised test proce-
dure for water heaters described 
in paragraph (5); 
‘‘(IV) is equipped by the manu-
facturer with an activation key; and 
‘‘(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 
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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 only to utilities or other companies oper-
ating electric thermal storage or demand re-
sponse programs that use grid-enabled water 
heaters. 
‘‘(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-
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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.— 
‘‘(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-
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bills, electric reliability, integration of re-
newable resources, and the environment. 
‘‘(iv) REQUIREMENTS.—In carrying 
out this subparagraph, the Secretary shall 
require 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.’’; and 
(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) with respect to grid-enabled water heaters 
that are not used as part of an electric thermal stor-
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age or demand response program, for any person 
knowingly and repeatedly— 
‘‘(A) to distribute activation keys for those 
grid-enabled water heaters; 
‘‘(B) otherwise to enable the full operation 
of those grid-enabled water heaters; or 
‘‘(C) to remove or render illegible the la-
bels of those grid-enabled water heaters.’’. 
Æ 
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