June 15, 2021

DOE ordered Rheem Manufacturing Co. to pay a $439,620 civil penalty after Rheem had manufactured and distributed in commerce in the U.S. 2,586 units of the noncompliant commercial package air conditioner Rheem model #RAWL-120C. 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 July 16, 2020, advising the company of the potential penalties and DOE's administrative process, including the company's right to a hearing.

On April 28, 2020, DOE issued a Notice of Noncompliance Determination to Rheem finding that the Rheem commercial package air conditioner model #RAWL-120C does not comply with applicable energy conservation standards based on DOE testing. Rheem provided DOE records showing the number of units Rheem distributed.