DOE has been severely criticized for its lack of enforcement of U.S. regulations.
The Department of Energy today announced 27 new proposed penalties against companies selling products in the United States without certifying that they comply with energy efficiency or water conservation standards.
The legally required certifications are said to ensure that products sold in the U.S. deliver significant energy and cost savings to buyers. Prior to the Obama Administration, the Department had never systematically enforced DOE’s 35-year-old energy efficiency standards. Lax enforcement of energy efficiency standards undermines the goal of increased energy efficiency – now clearly a national security issue.
There are other implications as well. While not directly automotive industry related, today’s enforcement actions – coming on top of a newly activist Department of Transportation in automotive safety matters and the U.S. Trade Representatives’ duties on Chinese tire imports, among other well-publicized examples – are the latest indications that an industrial policy of sorts to protect manufacturing jobs is underway across the Obama Administration.
The U.S. is alone among industrial nations – either communist run or elected democracies – to lack formal policies to protect U.S. jobs, now a contentious mid-term election year issue with record high unemployment levels not seen since the Great Depression.
In the latest DOE matter, the 27 companies include manufacturers, importers, and private labelers of appliance, plumbing, and lighting products – notably from Asian countries that are the source of trade friction and the loss of U.S. manufacturing jobs. Included are such well known exporters as Korean conglomerate Daewoo, Chinese Hisense (among the top ten Chinese electronics makers) and Sanyo Electric from Japan.
Collectively, the notices propose penalty fees of more than $3.5 million, although these fines may be reduced if the companies quickly comply with certification requirements. Unless companies address these claims within thirty days, the Department will file actions either in the United States District Court or with an Administrative Law Judge to demand payment of the proposed penalties
“This unprecedented number of cases reflects our commitment to enforce all aspects of the Department’s conservation standards,” said Scott Blake Harris, General Counsel of the Department. “Strong enforcement will encourage compliance and ensure cost savings for consumers.”
Earlier this year, the Department gave companies thirty days to submit correct energy use before “aggressive” enforcement actions were taken.