EPA Issues Enforcement Alert to Address Illegal Import of Hydrofluorocarbons into the United States

EPA Issues Enforcement Alert to Address Illegal Import of Hydrofluorocarbons into the United States

EPA increasing civil and criminal enforcement efforts due to the global phasedown of HFCs, a climate super pollutant

September 6, 2024

HFCs are potent, super polluting greenhouse gases with a global warming potential that can be hundreds to thousands of times greater than carbon dioxide that are commonly used in refrigeration, air conditioning, and other sectors. EPA's efforts under the 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 EPA's Office of Enforcement and Compliance Assurance. "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."

The AIM Act of 2020 mandates an 85 percent phasedown of HFCs from historic baseline levels by the year 2036 and 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. 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.

The United States is committed to its obligations under the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. The AIM Act was passed by Congress to implement the U.S. commitments to the Kigali Amendment that the U.S. officially ratified in October 2022.

So far in fiscal year 2024, EPA has completed nine civil settlements to resolve claims of unlawful imports of HFCs. The most recent settlements were against five companies - Clean Venture, Inc., HVAC Services, Liferafts Incorporated of Puerto Rico, Little Leaf Farms, LLC, and Parker Engineering and Mechanical, Inc. Each of these companies imported HFCs without allowances in violation of the AIM Act. 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 "EPA Targeting Illegal Imports of Hydrofluorocarbon Super-Pollutants to Combat Climate Change" enforcement alert is available on the EPA website.

More information related to HFCs, the AIM Act, and the Mitigating Climate Change National Enforcement and Compliance Initiative are available on EPA's website:

• National Enforcement and Compliance Initiative: Mitigating Climate Change.
• Enforcement of the American Innovation and Manufacturing Act of 2020.
• Protecting Our Climate by Reducing Use of HFCs.