The System shall comply with applicable installation standards in the California electrical, mechanical, and plumbing codes.

A thermostatic mixing valve conforming to ASSE 1017 shall be installed on the hot water supply line following all manufacturer installation instructions or the water heater shall conform to UL 60730-1, ASSE 1082, or ASSE 1084.

The installed System shall meet or exceed the following performance specifications:

1. Efficiency: meet all requirements of version 7.0 of the Northwest Energy Efficiency Alliance (NEEA) Advanced Water Heater Specification Tier 3 or higher, excluding Appendix A.
2. Thermal storage: comply with the first hour rating requirements in the following table (Chapter 5, Table 501.1(2) in 2022 California Plumbing Code):

   Number of bathrooms	1 to 1.5	1 to 1.5	1 to 1.5	2 to 2.5	2 to 2.5	2 to 2.5	2 to 2.5	3 to 3.5	3 to 3.5	3 to 3.5	3 to 3.5
   Number of bedrooms	1	2	3	2	3	4	5	3	4	5	6
   First Hour Rating (gallons)	38	49	49	49	62	62	74	62	74	74	74

The requirements below are applicable to all control strategies:

1. Time-of-use schedules: The System shall have the capability of storing a minimum of five time-of-use schedule(s) locally, each supporting a minimum of five distinct time periods for both weekdays and weekends, at least three separate seasonal schedules, and daylight savings time changes. The System shall support both local and remote setup, selection, and update of time-of-use schedules. Local and remote setup, selection, and update shall be possible through a user interface (such as an app).
2. Demand management functionality
   Upon receiving a demand management price or dispatch signal, the System shall be capable of all the following automatic event responses:
   1. Basic Load Up: The System will store extra thermal energy without exceeding the user set point temperature. It will avoid use of electric resistance elements unless user needs cannot be met;
   2. Advanced Load Up: The System stores extra thermal energy, where some or all of the tank may exceed the set point temperature chosen by the user, within safe operating conditions. Advanced Load Up must only be enabled after agreement by the user and utility as defined below. It will avoid use of electric resistance elements unless user needs cannot be met. Advanced Load Up will only be available in Advanced Demand Response Control mode as defined in JA13.3.3.2;
   3. Return to Standard Operation: The System terminates any demand management function and returns to user-selected standard operation mode until the next demand management function is activated;
   4. Light Shed: The System will defer complete recovery for the duration of the shed event unless user needs cannot be met; The water heater shall avoid use of electric resistance elements during and immediately after the event unless user needs cannot be met;
   5. Deep Shed: same as Light Shed, but the System will completely avoid use of electric resistance elements during the event; and
   6. Full Shed: same as Light Shed, but the System will completely avoid use of both compressor and electric resistance element during the event.
      The demand management signals may be sent from a local utility, a remote aggregator, a local demand manager (e.g. local time-of-use demand manager) or be internal to the System (e.g. internal schedule- or price-based demand management).
      The “Advanced Load Up” function shall only be enabled by a deliberate action of the user through the system’s physical or remote interface upon enrolling in a utility’s demand response program. The “Advanced Load Up” function shall be capable of being disabled deliberately by the user, or remotely by the utility or third-party service provider without deliberate action by the user.
      For a water heater sized in accordance with JA13.3.2(b) and with the default set point as shipped from the manufacturer, the System shall be able to shift:
      • A minimum of 0.5 kWh of user electrical energy per (Basic Load Up + Light Shed) event; and
      • A minimum of 1 kWh of user electrical energy per (Advanced Load Up + Light Shed) event, including at least 0.5 kWh on Advanced Load Up.
3. Non-standard mode exception: The demand management functionality shall be achieved in all user-selected modes except for vacation and off modes, which are deemed non-standard modes. The System shall return to the previous standard operation. Mode once the water heater exits from a non-standard mode.
4. Local time management: In the event of a loss of power, the System settings, including operating mode, time-of-use schedules, and local clock, shall be retained, or reacquired, for at least three months. The local clock shall have a maximum drift of less than 5 minutes per year under standard operating conditions and without requiring remote connectivity.
5. Override and permanent disabling: The System shall provide local and remote means for the user to override or permanently disable the demand management functions. The override shall be temporary and have a maximum duration of 72 hours. Permanent disabling shall not be available as an operating mode or as an option in the primary menu.
6. User interface: The System shall provide both a remote and local user interface, such as a web-based portal or a mobile device application, that at a minimum provides the dwelling occupants access to the following information: control strategy that is currently active, remote or local demand management mode, selected time-of-use schedule if applicable, and confirmation of any settings change.
7. Measurement and validation: When connected remotely, the System shall make the following data available to the local utility, remote aggregator, or local demand manager: Demand Management Override Status, Demand Management Disabled Status; power demand (watts); cumulative energy consumption (watt- hours); total energy storage capacity (watt-hours), available energy storage capacity (watt-hours).

The System shall be capable to use one of the following control strategies at the time of installation. The System also shall have the capability to switch to other control strategies if available. The “Advanced Load Up” function shall not be enabled at time of installation.