ALJ Recommendation for Assessment of Civil Penalty Under the EPCA
Office of Hearings and Appeals
August 3, 2023
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On August 3, 2023, an Office of Hearings and Appeals' (OHA) Administrative Law Judge recommended that a civil penalty of $1,285,165 be assessed against Shangdong Huajing Glass Co ., Ltd. (Shangdong) for violations of the Energy Policy and Conservation Act, 42 U.S.C. § 6291 et seq. ( the EPCA) and its implementing regulations.
Shangdong is a manufacturer of doors for coolers and walk -in freezers which are covered industrial products under the EPCA and DOE's energy conservation standard regulations. The DOE regulations require that manufacturers of such doors submit to the DOE a report certifying that such doors meet the energy conservation standards required under 10 C.F.R. § 102(a)(1) and 10 C.F.R. §429.12.
Upon failure to receive the mandatory report from Shangdong, the Office of the Assistant General Counsel for Enforcement (OGCE) issued a Notice of Proposed Civil Penalty (NPCP) to the Respondent, which offered a settlement of $642,538 as an alternative to the maximum allowed civil penalty of $1,285,165. Shangdong failed to provide any response to the NPCP. Subsequently, OGCE filed a complaint (Complaint) with OHA against Shangdong. Shangdong failed to file any response to the Complaint.
On April 21, 2023, OGCE filed a Motion to Deem the Allegations of the Complaint as Admitted ( MCA) along with a Motion for Decision (MFD) regarding its Complaint against Shangdong. In its Motion, OGCE sought a ruling a ruling deeming each of the allegations set forth in the Complaint as admitted and that Shangdong be assessed a civil penalty of $ 1,285,165. Shangdong failed to file any response to OGCE's MCA or MFD. Pursuant to the DOE's Procedures for Administrative Adjudication of Civil Penalty Actions, the ALJ found that by not responding, Shangdong was deemed to have admitted all of the allegations referenced in the Complaint. After reviewing the admitted allegations, the ALJ found that OGCE was entitled to seek a civil penalty from Shangdong pursuant to 10 C.F.R.
§429.102(a)(1). Consequently, the ALJ recommended that Shangdong be assessed the requested civil penalty of $1,285,165. (OHA Case No. EEE-23-0003, Cronin)