The EPA continues to crack down on the phasedown of hydrofluorocarbons (HFCs). The Agency recently issued an enforcement alert, which provides information on common compliance issues observed with the importation of bulk HFCs and highlights recent civil and criminal enforcement actions.

 

HFCs are potent, super-polluting greenhouse gases with a global warming potential that can be hundreds to thousands of times greater than carbon dioxide (CO2) and are commonly used in refrigeration, air conditioning, and other sectors. 

The EPA’s efforts under the American Innovation and Manufacturing (AIM) Act are part of a global HFC phasedown that, when fully implemented, is expected to reduce global warming by up to 0.5 degrees Celsius.

“After another summer of record-breaking heat, the urgency of the climate crisis continues to accelerate. The Biden-Harris administration is committed to meeting our goals to phasedown HFCs, which contribute dramatically to near-term climate change, so that our children and grandchildren can have a sustainable future,” said Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance in an Agency news release. The “EPA and its law enforcement partners will police our borders and ports to halt HFC smuggling to protect our nation from the harmful effects of climate super pollutants.”

An 85 percent phasedown of HFCs from historic baseline levels by the year 2036 is mandated under the 2020 AIM Act.

The Act “authorizes the EPA to place limits on production and consumption (including imports), facilitate the transition to next-generation technologies, and minimize releases from equipment using HFCs while maximizing the re-use of existing HFCs,” the Agency release adds. The “EPA’s enforcement office ensures the HFC phasedown rules are being followed and works to maintain a level playing field for regulated companies. The alert highlights EPA’s recent pursuit of entities that sought to unlawfully import HFCs without the required allowances, submitted false or misleading information, or failed to report required information under the AIM Act.”

To date, in fiscal year 2024, the EPA has reported the completion of nine civil settlements to resolve claims of the unlawful importation of HFCs.

The most recent settlements were with five companies. “Each of these companies imported HFCs without allowances in violation of the AIM Act,” the Agency noted in its release. “If released into the atmosphere, the combined HFCs prevented from these cases are equivalent to over 24 thousand metric tons of CO2, or about the same amount of CO2 produced from powering over 14 thousand homes with electricity for a year. The companies will pay a combined total of $115,551 in civil penalties to resolve the alleged violations. In addition, criminal enforcement actions have also been taken in fiscal year 2024.”

The consequences of noncompliance are severe and can include administrative, civil, or criminal enforcement actions. Charges for criminal violations of the AIM Act can include:

• Smuggling
• Conspiracy
• Money laundering
• False statements

The penalties for criminal violations can result in incarceration, restitution, and court-ordered environmental projects.

The current monetary penalty for illegally importing HFCs is steep—up to $121,275 per violation.