EXC-15-0001 - In the Matter of Reuland Electric Co.

On March 25, 2016, OHA issued a decision denying an Application for Exception filed by Reuland Electric Co. (Reuland).  In its Application, Reuland sought exception relief from the provisions of 10 CFR Part 431, Energy Conservation Program: Energy Conservation Standards for Commercial and Industrial Electric Blowers, 79 Fed. Reg. 30934 (2014) (Electric Motor Efficiency Standards), effective July 28, 2014 (codified at 10 C.F.R. § 431 .25). Compliance with the Electric Motor Efficiency Standards is required as of June 1, 2016.  Reuland is a domestic manufacturer of custom electric motors and asserted that the firm would suffer a special hardship, gross inequity and unfair distribution of burdens, if forced to comply with the new efficiency standards.  The firm therefore requested that OHA grant exception relief to authorize the firm to continue to manufacture up to 1200 custom motors per year that would not be required to meet the Electric Motor Efficiency Standards.  In evaluating Reuland’s Application, however, OHA found that Reuland had failed to substantiate its claim that the firm would incur prohibitively excessive capital costs to bring its custom motor product line into compliance.  Reuland’s Application for Exception was therefore denied.