1 | Regional Standards Enforcement Working Group DiscussionRegional StandardsEnforcement Working GroupEnforcement Plan2 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training• Reporting Violations• Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents3 | Regional Standards Enforcement Working Group Discussion•Basics• Public Awareness• Training• Reporting Violations• Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents4 | Regional Standards Enforcement Working Group Discussion• Least efficient rating combination for a specified model ofcondensing unit must be 14 in the SE and SW regions.• Least efficient rating combination for a specified model ofcondensing unit must meet minimum EER requirement in the SWregion.• Any condensing unit model thathas a certified combination thatis below the regional standard cannot be installed in the region.• A condensing unit model certified below a regional standard bythe OEM cannot be installed in a region subject to regionalstandard(s) even with an ICM indoor coil or air handlercombination that may have a certified rating meeting theapplicable regional standardVote: unanimous (1 abstention)“14 SEER” interpretation5 | Regional Standards Enforcement Working Group Discussion• Contractor– A person (other than the manufacturer or distributor) who sells toand/or installs for an end user a central air conditioner subject toregional standards• Dealer– A type of contractor, generally with a relationship with one ormore specific manufacturers• Installation– Installation of a central air conditioner is the connection of therefrigerant lines and/or electrical systems to make the central airconditioner operational• In the preamble DOE will describe that internet sales fallinto the category of contractor, dealer, or distributorVote: unanimousDefinitions6 | Regional Standards Enforcement Working Group Discussion• Basics•Public Awareness• Training• Reporting Violations• Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents7 | Regional Standards Enforcement Working Group Discussion• DOE will establish a webpage with information onregional standards• Others can link to this page from their own websites• Will include link to print:– Consumer information trifold– Distributor counter/bulletin board flier• Also link to file complaints via emailVote: unanimousDOE website8 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness•Training• Reporting Violations• Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents9 | Regional Standards Enforcement Working Group Discussion• Manufacturers will provide training to distributors andcontractors/dealers• Distributors will also conduct training• Contractors will also conduct own training• DOE will provide webinar on standards and enforcementVote: unanimousIndustry training10 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training•Reporting Suspected Violations• Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents11 | Regional Standards Enforcement Working Group Discussion• DOE will accept complaints in Enforcement inbox–EnergyEfficiencyEnforcement@hq.doe.gov• DOE will set up voicemail box for call-in complaints• Complainant will have confidentiality to maximum extentauthorized by law• DOE will look into all credible complaintsVote: unanimousReporting12 | Regional Standards Enforcement Working Group Discussion• If funding is available, DOE will consider conducting asurvey of homes in any region to determine if anoncompliant unit has been installedVote: unanimousProactive check13 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training• Reporting Violations•Records Retention• Finding of Routine Violation• Labels• Manufacturer LiabilityComponents14 | Regional Standards Enforcement Working Group Discussion• Scope: applies to installations in the Southeast and Southwest• Split-system central air conditioner:– outdoor condensing unit: manufacturer, model and serial number– indoor coil or air handler: manufacturer and model number• Do not need to keep track of components (e.g., uncased coil)• Single package air conditioner: manufacturer, model and serialnumber• For all such units:– location of the installation (including street address, city, state, and zipcode)– date of the installation; and– party from whom the unit was purchased, including company orindividual’s name, full address and phone numberVote: unanimousContractors/dealers15 | Regional Standards Enforcement Working Group Discussion• Split-system central air conditioner:– outdoor condensing unit: manufacturer, model and serial number• Single package: manufacturer, model and serial number• For all such units:– date unit was purchased from manufacturer– party from whom the unit was purchased, including company orindividual’s name, full address and phone number– date unit was sold to dealer/contractor– party to whom the unit was sold, including company or individual’sname, full address and phone number– if delivered, delivery address• Implementation date:– November 30, 2015Vote: unanimousDistributors16 | Regional Standards Enforcement Working Group Discussion• Split-system central air conditioner:– outdoor condensing unit: model and serial number– indoor coil or air handler: model number• Do not need to keep track of components (e.g. uncased coil)• Single package air conditioner: model and serial number• For all such units:– date of manufacture;– date of sale; and– party to whom the unit was sold, including company orindividual’s name, full address and phone numberVote: unanimousManufacturers17 | Regional Standards Enforcement Working Group Discussion• Maintain for 48 months for contractors, 54 fordistributors, and 60 for manufacturers– Dealers/contractors from date of install– Manufacturers and distributors from date of sale– Can be archived, just not deleted or disposed• Records shall be produced within 30 days of request• DOE can grant extra time if make good faith productionand explain need for additional time– Produce what have gathered in 30 days– Written explanation of need for more time with requested date forcompleting production• No requirement to create “new” forms• Not required to be electronic or “searchable”Vote: unanimousOther issues18 | Regional Standards Enforcement Working Group Discussion• DOE must have “reasonable belief” to request records specific to anon going investigation• DOE will look at following factors to determine:– Address of suspected noncompliant install or attempted install?– Identifying information for equipment?– Physical Evidence?• Picture of condensing unit with nameplate depicting model and serialnumber• Copy of EnergyGuide label• Copy of completed work order/invoice• Bill of sale for equipment• Copy of bid for installation• Distributor prepared price bookfor customer in regions– Repeat complaints about party?– Complainant has history of substantiated complaints?Vote: unanimousThreshold for records request19 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training• Reporting Violations• Records Retention•Finding of Routine Violation• Labels• Manufacturer LiabilityComponents20 | Regional Standards Enforcement Working Group DiscussionDistributor:– knowingly sell a product to a contractor or dealer with knowledgethat the entity will sell and/or install the product in violation of anyregional standard applicable to the product– knowingly sell a product to a contractor or dealer with knowledgethat the entity routinely violatesany regional standard applicable tothe productContractor/Dealer:– knowingly sell to and/or install for an end user a central airconditioner subject to regional standards with the knowledge thatsuch product shall be installed in violation of any regional standardapplicable to the productVote: unanimousViolation21 | Regional Standards Enforcement Working Group Discussion• Complete system installed is not certified as a completesystem that meets the applicable standard– may install combinations that were previously validly certifiedafter manufacturer has discontinued the combination– But: if discontinued because noncompliant with applicablestandard, cannot install• Replacement outdoor unit is not certified as part of acombination that meets the applicable standard– not necessarily as installed• Outdoor unit installed has a certified combination lessthan standard applicable in regionVote: unanimous (1 abstention)Product installed in violation22 | Regional Standards Enforcement Working Group Discussion• Investigation may include:– Discussion with end user– Request for retained records– Discussion with alleged violator• If no violation found, DOE will issue case closed letter toparty being investigated• If a non-compliant installation in one residence (orequivalent) remediated before DOE makes a finding,then DOE will issue a case closed letter to party beinginvestigated• If violation found, DOE will issue Notice of Violation andpost it publiclyVote: unanimousDOE investigation23 | Regional Standards Enforcement Working Group Discussion• Party found to be in violation can remediate• Sole method is replacement of noncompliant unit– A party may remediate by replacement of noncompliant units ordemonstrate to the Department’s satisfaction the attemptedreplacement of all noncompliant units– Remediation is at cost to party in violation• Must provide DOE serial number of old and new unit• DOE will provide these numbers to the manufacturer(s)and distributor(s)– check against warranty or other replacement claims• If clear, violation will not count towards finding of “routineviolator” unless repeated• DOE will issue Notice of RemediationVote: unanimousRemediation24 | Regional Standards Enforcement Working Group Discussion• If Routine Violator wants toremediate it must contactDOE Office of Enforcement (POC listed in notice) andidentify distributor or manufacturer it wishes to buyproduct from• DOE will contact distributor or manufacturer andauthorize sale for purposes of remediation within 3business days– DOE will send an official letter for sellers records• Party must provide documentation to DOE onceremediation is completed.• DOE will follow up with Routine Violator within 30 days ofofficial letter for sellers records to determine status ofremediationRemediation Continued25 | Regional Standards Enforcement Working Group Discussion• DOE will consider these factors:– number of violations (both found in current investigation and any pastinvestigations)– length of time over which committed violations– ratio of compliant/noncompliant installations or sales– percentage of employees committing violation– evidence of effort/intent– evidence of training/education– subsequent remedial actions• DOE will issue Notice of Finding of Routine Violation if determined tobe routine violator– Posted on Enforcement website– Blasted via emailRoutine Violator26 | Regional Standards Enforcement Working Group Discussion• In determining a Routine Violation,DOE shall consider whether theRoutine Violation was limited to a specific location. If DOE, in itsdiscretion, finds that the routine violation was so limited, DOE will inthe public notice of “Routine Violation” state that the prohibition onmanufacturer sales is limited to a particular contractor or distributionlocation. In making such determination DOE would rely on thefactors considered in determining whether a routine violationoccurred.Vote: unanimousRoutine Violator Continued27 | Regional Standards Enforcement Working Group Discussion• Party will have right to administrative appeal finding ofroutine violator• Must fileappealwithin 30 days of Noticeof Finding ofRoutine Violation• Office of Hearing and Appeals will receive administrativeappeals• Appeal must present information rebutting finding ofviolation(s)• Appeal will be decided within 45 days of filingVote: unanimousRight to appeal28 | Regional Standards Enforcement Working Group Discussion• Can be removed through remediation of violations• Will be removed no longer than 30 days after completesall remediation• DOE will issue Notice indicating no longer considered aroutine violatorVote: unanimousRemoval from “Routine Violator” list29 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training• Reporting Violations• Records Retention• Finding of Routine Violation•Labels• Manufacturer LiabilityComponents30 | Regional Standards Enforcement Working Group Discussion• Recommend FTC initiate rulemaking with simplified label• Make consistent with 14 SEER interpretationVote: unanimous (1 abstention)EnergyGuide Label31 | Regional Standards Enforcement Working Group Discussion• Manufacturers will add label to outdoor unit– Near or as part of current nameplate– Ruggedized to withstand elements• States “Install Prohibited in [pertinent regions]”– Southwest or Southeast and Southwest• In the preamble DOE will state:– Manufacturers have agreed to label outdoor units– AHRI agreed that as part of its certification program it will requireparticipants to label outdoor units• To be implemented by March 1, 2015– Also target date for AHRI certification programVote: unanimousManufacturer label32 | Regional Standards Enforcement Working Group Discussion• Basics• Public Awareness• Training• Reporting Violations• Records Retention• Finding of Routine Violation• Labels•Manufacturer LiabilityComponents33 | Regional Standards Enforcement Working Group Discussion• Once DOE issues Notice of Finding of Routine Violation,manufacturer can be fined for selling product to routine violator– Manufacturer has 3 business days from date of issuance of noticebefore it will be liable for sales to routine violator– Maximum fine is $200 per unit sold to routine violator• If a Notice of Intent to Appeal is filed within 3 business days ofNotice of Finding of Routine Violation thenmanufacturer may sellto routine violator during pendency of appeal– But: if appeal denied, mfgs are liable for products below eitherapplicable regional standards sold to routine violator during thattime• If manufacturer has knowledge of routine violation before DOEfinding, can be held liable for sales after date of knowledge– No liability for products sold if reported to DOE within 15 days ofreceipt of such knowledgeVote: unanimousManufacturer liability34 | Regional Standards Enforcement Working Group DiscussionPreamble language: The working group had significant discussionson the scope of the term product asit relates to the statutorilydefined prohibited act. The Departmentexplained that it interpretedthe term product to include all classes of central air conditioners andheat pumps found within 10 CFR430.32(c). Ultimately the workinggroup could not come to consensus on whether the scope of anyprohibition of sales could be limited to split system central airconditioners and single package systems instead of this broadinterpretation. See the public meeting transcript for October 24,2014.Vote: unanimousScope of “Product”35 | Regional Standards Enforcement Working Group Discussion• If DOE determines model of outdoor unit fails to meet regionalstandard when tested in a combination certified by the samemanufacturer, model of outdoor unit will be deemed noncompliantwith regional standard.– outdoor unit manufacturer responsible• If DOE determines combination fails to meet regional standard whentested in a combination certifiedby a manufacturer other than theoutdoor unit manufacturer (e.g., ICM), combination is deemednoncompliant with regional standard.– indoor unit manufacturer responsible• Manufacturer of model determined noncompliant with regionalstandard will be liable for distribution in commerce of noncompliantunits– Can minimize liability by demonstrating installed in region where wouldbe compliant– Manufacturer bears burden of provingVote: unanimousProduct determined noncompliant36 | Regional Standards Enforcement Working Group DiscussionPreamble language: The working group had significantdiscussions on whether to include additional prohibited actsand ultimately could not come to consensus on whether toinclude additional prohibited acts. See the public meetingtranscript for October 16, 2014.Vote: 1 objectionAdditional Prohibited Acts37 | Regional Standards Enforcement Working Group DiscussionIssues:1. Routine Violator1. Doug will follow up on modified language for limiting routine violator2. Doug will draft language to describe howa routine violator will remediate2. 3 business day response time (on slide “right to appeal”)3. Product definition (manufacturers and AHRI to follow up)4. State enforcement5. Manufacturer liability, additional prohibited act for manufacturerowned distribution?6. If DOE determines model of outdoor unit fails to meet regionalstandard when tested in a combination certified by the samemanufacturer, model of outdoor unit (in all certified combinations)will be deemed noncompliant with regional standard.7. Review of final packageMeeting Extension38 | Regional Standards Enforcement Working Group DiscussionAddition meeting on 10/24 starting at 8am