EEE-24-0012 - In the Matter of Saniborain LLC

On June 28, 2024, an Administrative Law Judge with the DOE's Office of Hearings and Appeals (OHA) issued an Initial Agency Decision under the DOE's Procedures for Administrative Adjudication of Civil Penalty Actions (the Administrative Procedures). The Energy Policy and Conservation Act (EPCA) established water and energy conservation standards for a variety of covered products, including large diameter ceiling fans. The DOE Energy Conservation Regulations implementing the EPCA require that manufacturers of covered products submit reports to DOE certifying that the covered product complies with the ECPA's conservation standards before they begin distributing it in commerce in the United States. The Regulations further provide that DOE may, at any time, request the data underlying certification of a covered product to make a determination of compliance or noncompliance with an applicable standard. If a manufacturer knowingly fails to respond to such a request, the Regulations provide for the assessment of civil penalties. Under the regulations, the General Counsel may initiate a civil penalty action by issuing a notice of proposed civil penalty (NPCP) to a manufacturer who has failed to comply with the regulations, notifying them of the DOE's intent to access a civil penalty. That manufacturer can elect to either comply with the NPCP or have a hearing before an Administrative Law Judge. If the NPCP recipient fails to respond to the NPCP, the regulations require the General Counsel to refer the civil penalty action to an Administrative Law Judge for a hearing. The DOE has issued the Administrative Procedures to provide procedural guidance for those hearings.

On February 8, 2024, the DOE's Office of the Assistant General Counsel for Enforcement (OGCE) issued a NPCP to a manufacturer, Saniborain LLC, alleging it failed to respond to two Requests for Test Data (TDRs) issued to it by the DOE, which sought all test data underlying the manufacturer's certification of two basic models of showerheads (Showerheads) that it introduced into commerce in the United States. On March 26, 2024, after the manufacturer failed to respond to the NPCP, the OGCE filed a Complaint with OHA alleging that the manufacturer knowingly failed to submit the information requested by the TDRs and seeking an assessment of a civil penalty in the amount of $ 70
,560. OHA's Director appointed an Administrative Law Judge to conduct a hearing under the Administrative Procedures.

The Administrative Law Judge found that the allegations in the Complaint were deemed admitted by the manufacturer, and that the manufacturer violated the ECPA by knowingly failing to submit the information requested by the TDRs for both Showerheads, in violation of the regulations. The Administrative Law Judge's decision recommended that the manufacturer be accessed a civil penalty of $70,560. (OHA Case No. EEE-24-0012, Fine)