The U.S. Environmental Protection Agency (EPA) announced several enforcement actions that support national and international goals to reduce the use of hydrofluorocarbons (HFCs) in our fight against climate change. These civil penalty actions include three landmark settlements with HFC importers who failed to report their imported quantities in violation of the Clean Air Act’s (CAA) Greenhouse Gas Reporting Program: Artsen Chemical America, LLC ($247,601 penalty), Harp USA, Inc. ($275,000 penalty), and the IGas Companies ($382,473 penalty). EPA is aggressively pursuing similar actions against several other importers that failed to report their HFCs.
EPA also recently issued the first notices of violation (NOVs) under the American Innovation and Manufacturing Act of 2020 (AIM Act) to alleged violators who imported regulated substances without required allowances. Under the AIM Act, importers are required to expend allowances to import HFCs. Compliance with the allowance system is critical to assuring the success of the United States’ HFC phasedown program. Illegal imports undermine the phasedown, disadvantage companies who follow the rules, and contribute to global warming.
"These NOVs demonstrate EPA's commitment to enforcing the American Innovation and Manufacturing Act of 2020," said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “In addition, our Greenhouse Gas Reporting Program settlements with HFC importers recognize that accurate data is essential for setting sound climate change policy.”
Stopping illegal HFC imports is a top priority of a federal interagency task force that includes EPA and U.S. Customs and Border Protection. In fiscal year 2022, the task force prevented illegal HFC imports equal to more than 889,000 metric tons of carbon dioxide. This equates to the carbon dioxide released from powering 173,000 homes with electricity for a year.
HFCs are commonly used in refrigeration and air conditioning equipment. Released to the atmosphere, HFCs can have a climate impact thousands of times stronger than carbon dioxide. Enforcement of the Greenhouse Gas Reporting Program demonstrates the Biden Administration’s commitment to address HFCs and protect our climate. The United States agreed under the bipartisan AIM Act to phasedown HFC production and consumption by 85% by 2036, consistent with the international HFC phasedown laid out in the Kigali Amendment to the Montreal Protocol. Global efforts to phase down HFCs are expected to avoid up to 0.5 °C of global warming by 2100. Accurate reporting of HFCs helps set sound policy and going forward under the HFC phasedown will allow the United States to verify we are meeting the limits under the AIM Act.
More information on the settlements and outstanding NOVs can be found at: Enforcement of the Greenhouse Gas Reporting Program: HFC Importers | US EPA. More information on the AIM Act NOVs can be found at: Enforcement of the American Innovation and Manufacturing Act of 2020 | US EPA.
Learn more about the Greenhouse Gas Reporting Program here: Greenhouse Gas Reporting Program. For more information on the EPA’s actions to address HFCs, visit: Protecting Our Climate by Reducing Use of HFCs.