Administrative Adjudication of Civil Penalty Actions

The Energy Policy and Conservation Act (EPCA) authorizes the U.S. Department of Energy (DOE) to regulate the energy and water efficiency of certain consumer products and industrial equipment.  (42 U.S.C. §§ 6291-6317).  EPCA makes it unlawful for manufacturers, including importers, to distribute in commerce in the U.S. covered consumer products and industrial equipment that does not comply with DOE’s energy or water conservation standards.  (42 U.S.C. § 6302).  EPCA authorizes DOE to enforce compliance with these standards and to assess civil penalties for noncompliance.  (42 U.S.C. § 6303).  EPCA also provides the opportunity for an on-the-record hearing before an Administrative Law Judge (ALJ) to manufacturers who receive a civil penalty notice for alleged noncompliance with the standards.  (42 U.S.C. § 6303).  After the opportunity for a hearing, the ALJ issues an initial decision with the ALJ’s findings and the basis for any civil penalty assessment.  (42 U.S.C. § 6303).  If the ALJ recommends a civil penalty, and the manufacturer does not appeal the ALJ’s initial decision, DOE then issues an Order assessing the civil penalty.  (10 C.F.R. § 429.126).