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Appliance and Equipment Efficiency Standards

Overview

Crowell & Moring’s energy team has significant experience with matters involving the U.S. Department of Energy’s (DOE) appliance conservation standards as well as the Energy Star program. We have been active in compliance, enforcement, policymaking, and other advisory matters spanning multiple presidential administrations, and we regularly advise manufacturers, importers, private labelers, and other stakeholders on the Energy Policy and Conservation Act (EPCA) and state-level programs, including those administered by the California Energy Commission (CEC). Our team is particularly adept at resolving matters that require counsel to be in command of technical issues, and to work extensively and productively with your legal, business, engineering, and technical teams. We have advised on and negotiated successful resolutions of enforcement cases on behalf of numerous clients spanning diverse consumer, commercial, and industrial products and are unique in being one of the only firms to have administratively litigated EPCA-related decisions from the DOE’s Office of Hearings and Appeals (OHA).

Our team takes a comprehensive approach to resolve EPCA compliance and enforcement issues, including political engagement, outreach to policy and enforcement staff, and when necessary, enforcement proceedings and litigation. Our long-term working relationships with DOE personnel and team members’ prior government experience, including serving within DOE's Office of General Counsel and as Energy Counsel to the U.S. House of Representatives Energy & Commerce Committee, give us substantive experience and credibility with agency stakeholders and an understanding of how DOE and other key government stakeholders operate. We have a wealth of experience helping companies navigate complex regulatory questions, protect their brands, and mitigate enforcement exposure.

More About Energy and Water Conservation Standards

Manufacturers, importers, and private labelers of consumer products and of certain commercial and industrial equipment should be aware of the energy and water conservation standards administered by the DOE. Originally promulgated under the Energy Policy and Conservation Act, these mandatory efficiency standards and test procedures may be less well-known than other product compliance regimes, but they can create significant compliance risk for manufacturers, importers, and private labelers—potential penalties can exceed $500 for each non-compliant product sold or made available for sale.

DOE currently regulates and sets mandatory conservation standards for energy and water efficiency for more than 60 consumer, commercial, and industrial products, with more products still under consideration. Manufacturers, importers, and private labelers should note that this regime has in recent years become a key tool in the regulatory arsenal of presidential administrations seeking to increase energy and water efficiency and reduce greenhouse gas emissions.

Insights

Client Alert | 3 min read | 01.26.23

Appliance Manufacturers and Importers Should Prepare for Increased DOE Enforcement Activity in 2023

As the Biden Administration enters its third year, now with a party split in Congress, it seems likely that the Administration will redouble its focus on executive branch regulatory tools that can be used to achieve energy-related policy objectives, including with respect to energy efficiency and reducing carbon emissions. For manufacturers and importers of appliances and certain other consumer, lighting, plumbing and commercial and industrial products, that means the potential for additional scrutiny of their products’ compliance with the Department of Energy’s (DOE) conservation standards for energy and water efficiency. It also likely means a commensurate increase in DOE enforcement activity for non-compliance with the applicable efficiency standards or the associated test procedures required to demonstrate compliance, as well as registration and labeling requirements. Given the magnitude of the penalties associated with violating efficiency standards, currently $503 per violation, which can quickly run into multiple millions of dollars across noncompliant units, manufacturers and importers should consider refamiliarizing themselves with DOE’s conservation standards regime....

Representative Matters

  • Prepared written comments for Fortune 500 company on DOE’s proposed energy conservation standards for multiple residential products.
  • Advise major international appliance manufacture on compliance and enforcement under the Energy Star program.
  • Represented covered product manufacturer on the novel application of DOE's enforcement authority for the Backstop Rule for General Service Lamps.
  • Represented a covered product manufacturer in self-reporting a DOE compliance violation and in all phases of the subsequent DOE enforcement proceeding and settlement process, resulting in a favorable client outcome and a significant reduction from the proposed penalty to the penalty paid.
  • Advised a global technology manufacturer on novel compliance issues related to an Internet-connected consumer appliance, including obtaining a beneficial private letter ruling from DOE for the client ahead of the global launch of their product.
  • Counseled a covered product manufacturer through a DOE enforcement proceeding resulting from a DOE-initiated enforcement investigation of the manufacturer’s product, including conducting an internal investigation concerning the manufacturer’s historical production and testing processes. Ultimately reached a favorable outcome for the client in settlement, securing a significantly smaller penalty than initially proposed by the agency.
  • Represented three covered product manufacturers in separate but parallel proceedings to pursue interpretation of a DOE compliance standard for external power supplies (EPSs), including through staff outreach, OHA proceedings and, ultimately, appeals to the Federal Energy Regulatory Commission (FERC) to challenge the OHA outcomes. All three matters were resolved through settlement during the FERC proceedings, resulting in the issuance of new DOE guidance for EPSs that reflected our clients' input.
  • Advised a global manufacturer and importer of covered products on multiple novel compliance issues related to Internet-connected devices and diverse issues related to EPSs and battery chargers, including proactive outreach to DOE policy staff.
  • Advised diverse manufacturers and importers throughout all phases of the EPCA rulemaking process for multiple products, including DOE staff outreach, development of comments, and outreach to other impacted companies.
  • Represented a covered product manufacturer regarding a novel product category throughout all phases of CEC rulemaking, including challenges to the Codes and Standards Enhancement process, outreach to CEC staff, coordination and collaboration with aligned stakeholders and, at times, contentious informational sessions with CEC staff and other stakeholders, ultimately reaching the most satisfactory available outcome for the client.

Insights

Client Alert | 3 min read | 01.26.23

Appliance Manufacturers and Importers Should Prepare for Increased DOE Enforcement Activity in 2023

As the Biden Administration enters its third year, now with a party split in Congress, it seems likely that the Administration will redouble its focus on executive branch regulatory tools that can be used to achieve energy-related policy objectives, including with respect to energy efficiency and reducing carbon emissions. For manufacturers and importers of appliances and certain other consumer, lighting, plumbing and commercial and industrial products, that means the potential for additional scrutiny of their products’ compliance with the Department of Energy’s (DOE) conservation standards for energy and water efficiency. It also likely means a commensurate increase in DOE enforcement activity for non-compliance with the applicable efficiency standards or the associated test procedures required to demonstrate compliance, as well as registration and labeling requirements. Given the magnitude of the penalties associated with violating efficiency standards, currently $503 per violation, which can quickly run into multiple millions of dollars across noncompliant units, manufacturers and importers should consider refamiliarizing themselves with DOE’s conservation standards regime....

Insights

Client Alert | 3 min read | 01.26.23

Appliance Manufacturers and Importers Should Prepare for Increased DOE Enforcement Activity in 2023

As the Biden Administration enters its third year, now with a party split in Congress, it seems likely that the Administration will redouble its focus on executive branch regulatory tools that can be used to achieve energy-related policy objectives, including with respect to energy efficiency and reducing carbon emissions. For manufacturers and importers of appliances and certain other consumer, lighting, plumbing and commercial and industrial products, that means the potential for additional scrutiny of their products’ compliance with the Department of Energy’s (DOE) conservation standards for energy and water efficiency. It also likely means a commensurate increase in DOE enforcement activity for non-compliance with the applicable efficiency standards or the associated test procedures required to demonstrate compliance, as well as registration and labeling requirements. Given the magnitude of the penalties associated with violating efficiency standards, currently $503 per violation, which can quickly run into multiple millions of dollars across noncompliant units, manufacturers and importers should consider refamiliarizing themselves with DOE’s conservation standards regime....