This week, the Department of Energy (DOE) announced 27 proposed penalties totaling $3.5 million against companies for failing to certify that their products complied with new federally mandated energy efficiency and water conservation standards. Under the Obama Administration, the DOE established energy efficiency standards for more than twenty product categories that will save consumers between $250 and $300 billion on their energy bills through 2030.
The 27 penalties were assessed to manufacturers, importers, and private labelers in the following product categories: three (3) refrigerators/freezers, four (4) incandescent and fluorescent lamps, seven (7) showerheads and faucets, four (4) dishwashers, clothes washers, and clothes dryers, four (4) dehumidifiers, and five (5) water heaters and pool heaters. The DOE announced this enforcement initiative in October 2009 and is following through with its promise of “stepping up enforcement” to save energy for American consumers and businesses and ensure that manufacturers have a level playing field. Companies affected by the DOE’s newly promulgated standards (especially those manufacturing or selling the above products) should expect this enforcement trend to continue under the current Administration.
Since these penalties are proposed, not final, there is the opportunity to negotiate a lower penalty in response to a product specific justification, an agreement to attain compliance on a reasonable schedule or other innovative approaches. Also, companies may want to perform an energy or water efficiency audit of their product lines to ensure compliance.
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