ALJ Recommendation for Assessment of Civil Penalty Under the EPCA
Office of Hearings and Appeals
April 11, 2024
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On April 11, 2024, an Office of Hearings and Appeals' (OHA) Administrative Law Judge recommended that a civil penalty of $296,745 be assessed against Ningbo Xingtai Technology Co., Ltd. (Respondent) for violations of the Energy Policy and Conservation Act, 42 U.S.C. § 6291 et seq. (the EPCA) and its implementing regulations.
Respondent is a manufacturer of ceiling fans which are covered industrial products under the EPCA and DOE's energy conservation standard regulations. The DOE regulations require that manufacturers of such fans submit to the DOE a report certifying that such fans meet the energy conservation standards required under 10 C.F.R. § 102(a)(1) and 10 C.F.R. §429.12.
Upon failure of six models of ceiling fans to pass the energy efficiency standards or to submit a compliance report mandated at 10 C.F.R. Part 429, the Office of the Assistant General Counsel for Enforcement (OGCE) issued a Notice of Proposed Civil Penalty (NPCP) to the Respondent. OGCE filed a complaint (Complaint) with OHA against the Respondent. The Respondent failed to file any response to the NPCP or the Complaint.
On March 4, 2024, OGCE filed a Motion to Deem the Allegations of the Complaint Admitted, and a Motion for Decision (collectively MFD) regarding its Complaint against the Respondent. The Motions sought rulings deeming each of the allegations set forth in the Complaint as admitted and requested that the ALJ issue a decision against the Respondent. The Respondent failed to reply to the MFD. The ALJ determined that because of the Respondent's failure to respond to the Complaint or the MFD, OGCE's allegations against the Respondents were deemed admitted and that the Motion for Decision be granted. The ALJ also found that it was appropriate assess a civil penalty against the Respondent and recommended that the Respondent be assessed a civil penalty of $296,745. (OHA Case No. EEE-24-0009, Cronin)