IB 
Union Calendar No. 102 
114TH CONGRESS 
1ST SESSION 
H. R. 906 
[Report No. 114–142] 
To modify the efficiency standards for grid-enabled water heaters. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2015 
Mr. WHITFIELD (for himself, Mr. WELCH, Mr. LATTA, Mr. LOEBSACK, Mr. 
CRAMER, and Mr. MICHAEL F. DOYLE of Pennsylvania) introduced the 
following bill; which was referred to the Committee on Energy and Com-
merce 
JUNE 9, 2015 
Additional sponsors: Mr. BYRNE, Mr. EMMER of Minnesota, Mr. DUNCAN of 
South Carolina, Mr. MULVANEY, Mr. NOLAN, Mr. GIBSON, Mr. PETER-
SON, Mr. GOWDY, Mr. MESSER, Mr. BUCSHON, Mr. BLUM, and Mr. 
WOMACK 
JUNE 9, 2015 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 11, 2015] 
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A BILL 
To modify the efficiency standards for grid-enabled water 
heaters. 
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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: 
‘‘(i) ACTIVATION LOCK.—The term ‘ac-
tivation lock’ means a control mechanism 
(either a physical device directly on the 
water heater or a control system integrated 
into the water heater) that is locked by de-
fault and contains a physical, software, or 
digital communication that must be acti-
vated with an activation key to enable the 
product to operate at its designed specifica-
tions 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. 
‘‘(ii) GRID-ENABLED
WATER
HEAT-
ER.—The term ‘grid-enabled water heater’ 
means an electric resistance water heater 
that— 
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‘‘(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 multiplying— 
‘‘(AA) the rated storage 
volume of the tank, expressed 
in gallons; and 
‘‘(BB) 0.00168; or 
‘‘(bb) an equivalent alter-
native standard prescribed by the 
Secretary and developed pursuant 
to paragraph (5)(E); 
‘‘(IV) is equipped at the point of 
manufacture with an activation lock; 
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 
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‘‘(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 in-
tended 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. Con-
firm 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 electric ther-
mal storage or demand response program that 
uses such a grid-enabled water heater. 
‘‘(C) REPORTS.— 
‘‘(i) MANUFACTURERS.—The Secretary 
shall require each manufacturer of grid-en-
abled water heaters to report to the Sec-
retary annually the quantity of grid-en-
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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 opera-
tors to report annually the quantity of grid- 
enabled water heaters activated for their 
programs using forms of the Energy Infor-
mation Agency or using such other mecha-
nism that the Secretary determines appro-
priate after an opportunity for notice and 
comment. 
‘‘(iii) 
CONFIDENTIALITY
REQUIRE-
MENTS.—The Secretary shall treat shipment 
data reported by manufacturers as con-
fidential business information. 
‘‘(D) PUBLICATION OF INFORMATION.— 
‘‘(i) IN GENERAL.—In 2017 and 2019, 
the Secretary shall publish an analysis of 
the data collected under subparagraph (C) 
to assess the extent to which shipped prod-
ucts are put into use in demand response 
and thermal storage programs. 
‘‘(ii) PREVENTION OF PRODUCT DIVER-
SION.—If the Secretary determines that 
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sales of grid-enabled water heaters exceed by 
15 percent or greater the quantity of such 
products activated for use in demand re-
sponse and thermal storage programs annu-
ally, the Secretary shall, after opportunity 
for notice and comment, establish proce-
dures to prevent product diversion 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 re-
quirement; or 
‘‘(II) sales of grid-enabled water 
heaters exceed by 15 percent or greater 
the quantity of such products activated 
for use in demand response and ther-
mal storage programs annually and 
procedures to prevent product diversion 
for non-program purposes would not be 
adequate to prevent such product di-
version. 
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‘‘(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 described 
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-
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-effec-
tive.’’; 
(2) in section 332(a) (42 U.S.C. 6302(a))— 
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(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 to— 
‘‘(A) 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; 
‘‘(B) distribute an activation key for a grid- 
enabled water heater with knowledge that such 
activation key will be used to activate a grid-en-
abled water heater that is not used as part of an 
electric thermal storage or demand response pro-
gram; 
‘‘(C) otherwise enable a grid-enabled water 
heater to operate at its designed specification 
and capabilities with knowledge that such water 
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heater is not used as part of an electric thermal 
storage or demand response program; or 
‘‘(D) knowingly remove or render illegible 
the label of a grid-enabled water heater described 
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 section 
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)— 
(A) by striking ‘‘section 332(a)(5)’’ and in-
serting ‘‘paragraph (5), (6), (7), or (8) of section 
332(a)’’; and 
(B) by striking ‘‘section 332(a)(6)’’ and in-
serting ‘‘section 332(a)(7)’’. 
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Union Calendar No. 102 
114TH CONGRESS 
1ST SESSION 
H. R. 906 
[Report No. 114–142] 
A BILL 
To modify the efficiency standards for grid-enabled 
water heaters. 
JUNE 9, 2015 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
21:28 Jun 09, 2015
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