,,ii  #aacth ,,congress  #ast ,session  
,s4 #agci  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #bj1 
#bjac,mr4 ,hoeven 7for himself1 ,mr4    
,pryor1 ,mr4 ,chambliss1 ,ms4           
,klobuchar1 and ,mr4 ,blunt7 introduced 
the following bill2 which was read twice
 and referred to the ,committee on      
,energy and ,natural ,resources  ,a     
,,bill  ,to modify the efficiency       
standards for grid-enabled water        
heaters4  #a4 ,grid-enabled water       
heaters ,part ,b of title ,,iii of the  
,energy ,policy and ,conservation ,act  
7#db ,u4,s4,c4 #fbia et seq47 is        
amended-- 7#a7 in section #cbe7;e7 7#db 
,u4,s4,c4 #fbie7;e771 by adding at the  
end the following3  7#f7 ,additional    
standards for grid-enabled water heaters
  7,a7 ,definitions ,in this paragraph3 
7i7 ,activation key ,the term activation
 key means a physical device or control 
directly on the water heater1 a software
 code1 or a digital communication       
means-- 7,i7 that must be activated to  

enable the product to operate           
continuously and at its designed        
specifications and capabilities2 and    
7,,ii7 without which activation the     
product will provide not greater than   
#ej percent of the rated first hour     
delivery of hot water certified by the  
manufacturer4  7ii7 ,grid-enabled water 
heater ,the term grid-enabled water     
heater means an electric resistance     
water heater that-- 7,i7 has a rated    
storage tank volume of more than #ge    
gallons2  7,,ii7 is manufactured on or  
after ,april #af1 #bjae2  7,,iii7 has-- 
7aa7 an energy factor of not less than  
#a4jfa minus the product obtained by    
multiplying-- 7,,aa7 the rated storage  
volume of the tank1 expressed in        
gallons2 and 7,,bb7 #j4jjafh2 or  7bb7  
an efficiency level equivalent to the   
energy factor under item 7aa7 and       
expressed as a uniform energy descriptor
 based on the revised test procedure for
 water heaters described in paragraph   
7#e72  7,,iv7 is equipped by the        

manufacturer with an activation key2 and
  7,v7 bears a permanent label applied  
by the manufacturer that-- 7aa7 is made 
of material not adversely affected by   
water2  7bb7 is attached by means of    
non-water-soluble adhesive2 and  7cc7   
advises purchasers and end-users of the 
intended and appropriate use of the     
product with the following notice       
printed in #af4e point ,arial ,narrow   
,bold font3 ,,important ,,information3  
,this water heater is intended only for 
use as part of an electric thermal      
storage or demand response program4 ,it 
will not provide adequate hot water     
unless enrolled in such a program and   
activated by your utility company or    
another program operator4 ,confirm the  
availability of a program in your local 
area before purchasing or installing    
this product44  7,b7 ,requirement ,the  
manufacturer or private labeler shall   
provide the activation key only to      
utilities or other companies operating  
electric thermal storage or demand      

response programs that use grid-enabled 
water heaters4  7,c7 ,reports  7i7      
,manufacturers ,the ,secretary shall    
require each manufacturer of            
grid-enabled water heaters to report to 
the ,secretary annually the quantity of 
grid-enabled water heaters that the     
manufacturer ships each year4  7ii7     
,operators ,the ,secretary shall require
 utilities and other demand response and
 thermal storage program operators 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 comment4     
7iii7 ,confidentiality requirements ,the
 ,secretary shall treat shipment data   
reported by manufacturers as            
confidential business information4  7,d7
 ,publication of information  7i7 ,in   
general ,in #bjag and #bjai1 the        
,secretary shall publish an analysis of 

the data collected under subparagraph   
7,c7 to assess the extent to which      
shipped products are put into use in    
demand response and thermal storage     
programs4  7ii7 ,prevention of product  
diversion ,if the ,secretary determines 
that sales of grid-enabled water heaters
 exceed by #ae percent or greater the   
quantity of such products activated for 
use in demand response and thermal      
storage programs annually1 the          
,secretary shall1 after opportunity for 
notice and comment1 establish procedures
 to prevent product diversion for       
non-program purposes4  7,e7 ,compliance 
7i7 ,in general ,subparagraphs 7,a7     
through 7,d7 shall remain in effect     
until the ,secretary determines under   
this section that grid-enabled water    
heaters do not require a separate       
efficiency requirement4  7ii7 ,effective
 date ,if the ,secretary exercises the  
authority described in clause 7i7 or    
amends the efficiency requirement for   
grid-enabled water heaters1 that action 

will take effect on the date described  
in subsection 7m77#d77;,a77ii74  7iii7  
,consideration ,in carrying out this    
section with respect to electric water  
heaters1 the ,secretary shall consider  
the impact on thermal storage and demand
 response programs1 including the       
consequent impact on energy savings1    
electric bills1 electric reliability1   
integration of renewable resources1 and 
the environment4  7iv7 ,requirements ,in
 carrying out this subparagraph1 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 technology is available1       
practical1 and cost-effective4  2 and   
7#b7 in section #ccb 7#db ,u4,s4,c4     
#fcjb7-- 7,a7 in paragraph 7#e71 by     
striking or at the end2  7,b7 in the    
first paragraph 7#f71 by striking the   
period at the end and inserting a       

semicolon2  7,c7 by redesignating the   
second paragraph 7#f7 as paragraph 7#g72
  7,d7 in subparagraph 7,b7 of paragraph
 7#g7 7as so redesignated71 by striking 
the period at the end and inserting 2   
or2 and  7,e7 by adding at the end the  
following3  7#h7 with respect to        
grid-enabled water heaters that are not 
used as part of an electric thermal     
storage or demand response program1 for 
any person knowingly and repeatedly--   
7,a7 to distribute activation keys for  
those grid-enabled water heaters2  7,b7 
otherwise to enable the full operation  
of those grid-enabled water heaters2 or 
7,c7 to remove or render illegible the  
labels of those grid-enabled water      
heaters4  4