Hoeven, Klobuchar Water Heater Efficiency Legislation Passes House, Goes to President for Signature

Hoeven, Klobuchar Water Heater Efficiency Legislation Passes House, Goes to President for Signature

Measure Saves Consumers Additional Expense

WASHINGTON, D.C. – April 22, 2015 – (RealEstateRama) — Senators John Hoeven (R-N.D.) and Amy Klobuchar (D-Minn.) today announced that the House of Representatives has passed their Water Heater Efficiency legislation. The bill enables rural electric power cooperatives and their members to continue using large, energy-efficient water heaters in “demand response” conservation programs. The measure passed the Senate last month and now goes to the president’s desk for his signature.

The legislation addresses the Department of Energy’s (DOE) plan to phase out these water heaters by April 2015. The DOE’s new rules do not take into account the value of these water heaters to both consumers and the electrical cooperatives that serve them throughout rural America.

“This commonsense, bipartisan bill means our rural electrical cooperatives can continue using large, energy-efficient water heaters in their conservation programs, and our rural consumers won’t have to buy much more expensive water heaters,” Hoeven said. “As a result of our bill, consumers save money, rural electric cooperatives optimize their energy management and the environment benefits because the water heaters in the program are energy efficient.”

Senator Amy Klobuchar: “Rural electric cooperatives power farms and businesses, encourage clean energy development, and save consumers money. Our legislation will ensure that these providers can continue to deliver affordable, efficient electricity to the rural communities that help keep our country strong.”

“North Dakota’s rural electric cooperatives are extremely grateful for Senator Hoeven’s diligent leadership in achieving this water heater fix,” said Dennis Hill, Executive Vice President and General Manager of the North Dakota Association of Electrical Cooperatives. “North Dakota’s rural electric Cooperatives have relied on large capacity thermal storage water heaters in demand response programs for years. We have thousands of these water heaters in use across North Dakota and losing this option would have been a real blow to demand response programs used by rural electric cooperatives

“Electric co-ops across the country appreciate the incredible leadership and persistence of Senator Hoeven for his role in getting S. 535 across the finish line,” said Jo Ann Emerson, NRECA CEO. “The bill helps save consumers money, promotes reliability of the grid, and helps integrate renewable energy – truly a win-win-win piece of legislation.”

Darrick Moe, Minnesota Rural Electric Association, President and CEO: “On behalf of the Minnesota Rural Electric Association members, we are grateful for your hard work in advocating for the Rural Electric Cooperatives in Minnesota by finding a way to protect the use of large capacity electric water heaters in our load management programs. Large capacity water heaters are the best storage alternative currently available on the electrical power grid because the water heater elements are run through the night, when generation resources such as wind energy are plentiful and loads are light. During the day the elements are turned off when loads are high and generation resources are stretched thin. While other systems of storing energy undergo research and development, Minnesota’s cooperatives have these load management practices and technologies in place today to provide for a more reliable and economic system, and facilitate the integration of renewable energy resources.”

Demand-response programs use off-peak electricity to conserve energy and reduce costs to consumers. The programs also help electrical cooperatives to manage load during periods of peak demand. Additionally, in areas where wind is in the energy mix, the programs can help integrate renewable energy into the grid by enabling power to be stored under conditions when renewable sources are not producing power.

The bill allows the continued manufacture of large “grid-enabled” electric-resistance water heaters only for use in electric thermal storage or demand response programs. It also requires “grid-enabled water heaters” to have a volume of more than 75 gallons, be energy efficient and work on grids that have a demand response program.

The Hoeven-Klobuchar provision was passed as part of the Energy Efficiency Improvement Act of 2015.

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