1 | General Counsel’s Office of EnforcementRegional StandardsEnforcement Working GroupRefresher on CentralAir ConditionerRegional Standards2 | General Counsel’s Office of EnforcementRelevant History• Energy Policy and Conservation Act of 1975 ("EPCA")– Title III created energy conservation program for consumerproducts– Codified at 42 U.S.C. § 6291,et. seq.• Energy Independence and Security Act (“EISA 2007”)– authorized regional standards for furnaces, central airconditioners, and heat pumps• Codified at 42 U.S.C. 6295(o)(6)• DOE issued Direct Final Rule promulgating regionalstandards for furnaces and specified central airconditioners in 2011• Subsequent litigation over furnaces resulted insettlement that vacated rule as relates to certain productclasses of furnaces3 | General Counsel’s Office of Enforcement10 C.F.R. 430.32(c)(3):• In addition to meeting the [national standard], [splitsystem air conditioners] that are manufactured on orafter January 1, 2015, and installed in the States ofAlabama, Arkansas, Delaware, Florida, Georgia, Hawaii,Kentucky, Louisiana, Maryland, Mississippi, NorthCarolina, Oklahoma, South Carolina, Tennessee, Texas,or Virginia, or in the District of Columbia, shall have aSeasonal Energy Efficiency Ratio not less than 14.What are the Regional Standards?4 | General Counsel’s Office of Enforcement10 C.F.R. 430.32(c)(4):In addition to meeting the [national standard], [splitsystem air conditioners and single-package airconditioners] that are manufactured on or after January1, 2015, and installed in the States of Arizona, California,Nevada, or New Mexico shall have a Seasonal EnergyEfficiency Ratio not less than 14 and have an EnergyEfficiency Ratio (at a standard rating of 95 °F dry bulboutdoor temperature) not less than the following:– split-systems with a rated cooling capacity of less than 45,000Btu/hr must have an EERof at least 12.2;– split-systems with a rated cooling capacity of equal to or greaterthan 45,000 Btu/hr must have anEER of at least 11.7; and– single-package systems must have an EER of at least 11.What are the Regional Standards?(continued)5 | General Counsel’s Office of Enforcement• June 28, 2012 DOE issued guidance– Stated the EISA 2007 amendments to EPCA specifically tied thecompliance date for regional standardsto the date of installation.– Based upon language from 42 U.S.C. 6295(o)(6)(E):the base national standard shall “apply to all productsmanufactured or imported into the United States on and after theeffective date of the standard,” but “[a]ny additional and morerestrictive regional standard ... shall apply to any such productinstalled on or after the effective date of the standard...”(emphasis added).Date of installation guidance6 | General Counsel’s Office of Enforcement• FTC issued Final Rule regarding the label that would beused on products subject tothe regional standards onFebruary 6, 2013.• Federal Register notice included sample Energy Guidelabels.FTC Labeling Rule7 | General Counsel’s Office of Enforcement• The portion of the rule relating to energy conservationstandards for non-weatherized gas furnaces, includingmobile home gas furnaces, was vacated and remandedto DOE for a new notice and comment rulemakingproceeding.• DOE agreed to:– conduct an administrative proceeding to clarify its processrelated to direct final rules;– clarify its position regarding its enforcement authority vis-à-visdistributors;– exercise its enforcement discretion by not seeking civil penaltiesfor violations of the regional air conditioner standards for 18months, so as to alleviate problems related to product sellthrough and stranded inventory; and– consider a negotiated rulemaking to address enforcement ofregional standards for central air conditioners.Furnace litigation settlement8 | General Counsel’s Office of Enforcement• Issued April 24, 2014• DOE stated will not assert civil penalty authority forviolation of the regional standard for central airconditioners, as defined in 10 C.F.R. Part 430, overparties that are distributors, as defined by 42 U.S.C §6291(14).Distributor policy statement9 | General Counsel’s Office of Enforcement• Issued April 24, 2014.• DOE stated that due to the uncertainty created by thelitigation and in an exercise of its enforcement discretion,DOE will not seek civil penalties for violations of theregional standards applicable to central air conditionersthat occur prior to July 1, 2016, provided that theviolations are related to the distribution in commerce(including sales by retailers and installation) of unitsmanufactured prior to January 1, 2015.• Does not apply to units manufactured on or after January1, 2015.18-month grace period10 | General Counsel’s Office of EnforcementQuestions?