March 19, 2021
DOE ordered Rheem Manufacturing Co. to pay a $695,000 civil penalty after Rheem had manufactured and distributed in commerce in the U.S. 3,768 units of the noncompliant commercial package air conditioner Rheem model # RKKL-B090D. The Order adopted a Compromise Agreement, which reflected settlement terms between DOE and Rheem.
Federal law subjects manufacturers and private labelers to civil penalties if those parties distribute in the U.S. products that do not meet applicable energy conservation standards. DOE issued a civil penalty notice on October 24, 2019, advising the company of the potential penalties and DOE's administrative process, including the company's right to a hearing.
On May 16, 2019, DOE issued a Notice of Noncompliance Determination to Rheem finding that the Rheem commercial package air conditioner model # RKKL-B090D does not comply with applicable energy conservation standards based on DOE testing. Rheem provided DOE records showing the number of units Rheem distributed.