ALJ Recommendation for Assessment of Civil Penalty Under the EPCA
Office of Hearings and Appeals
July 14, 2023
minute read time
On July 14, 2023, an Office of Hearings and Appeals’ (OHA) Administrative Law Judge recommended that a civil penalty of $137,696 be assessed against Advanced Insulation Concepts, Inc. (Advanced) for violations of the Energy Policy and Conservation Act, 42 U.S.C. § 6291 et seq. (the EPCA) and its implementing regulations.
Advanced is a manufacturer of doors for coolers and walk-in freezers which are covered industrial products under the EPCA and DOE’s energy conservation standard regulations. The DOE regulations require that manufacturers of such doors submit to the DOE a report certifying that such doors meet the energy conservation standards required under 10 C.F.R. § 102(a)(1) and 10 C.F.R. §429.12.
Upon failure to receive the mandatory report from Advanced, the Office of the Assistant General Counsel for Enforcement (OGCE) issued a Notice of Proposed Civil Penalty (NPCP) to the Respondent, which offered a settlement of $137,696 as an alternative to the maximum allowed civil penalty of $550,785. Advanced failed to provide any response to the NPCP. Subsequently, OGCE filed a complaint (Complaint) with OHA against Advanced. Advanced failed to file any response to the Complaint.
On March 28, 2023, OGCE filed a Motion for Decision (MFD) regarding its complaint against Advanced. In its Motion, OGCE sought a ruling a ruling deeming each of the allegations set forth in the Complaint as admitted and that Advanced be assessed a civil penalty of $137,696. Advanced failed to file any response to OGCE’s MFD. Pursuant to the DOE’s Procedures for Administrative Adjudication of Civil Penalty Actions, the ALJ found that by not responding, Advanced was deemed to have admitted all of the allegations referenced in the Complaint. After reviewing the admitted allegations, the ALJ found that OGCE was entitled to seek a civil penalty from Advanced pursuant to 10 C.F.R. §429.102(a)(1). Consequently, the ALJ recommended that Advanced be assessed the requested civil penalty of $137,696. (OHA Case No. EEE-23-0005, Cronin)