Bill > S1739

This bill modifies efficiency standards for grid-enabled water heaters, which are electric resistance water heaters with a storage tank volume over 75 gallons manufactured after April 16, 2015, that meet specific energy factor requirements and are equipped with an "activation key." An activation key is defined as a mechanism, such as a physical device, software code, or digital communication, that must be activated for the water heater to operate at its full capacity; without it, the heater provides no more than 50% of its rated hot water output. The bill mandates that manufacturers provide activation keys only to utilities or companies operating electric thermal storage or demand response programs, which are programs designed to manage electricity usage. Manufacturers and program operators must report the quantities of these water heaters shipped and activated annually, with shipment data treated as confidential. The Secretary of Energy will analyze this data to ensure products are used as intended and will establish procedures to prevent diversion for non-program purposes if sales significantly exceed activated units. The bill also outlines penalties for distributing activation keys or enabling full operation of grid-enabled water heaters not part of these programs, or for removing their required warning labels. The Secretary will consider the impact on energy savings, bills, reliability, and renewable resource integration when implementing these standards.