EPA Issues Enforcement Alert for Illegal Import of HFCs

The U.S. Environmental Protection Agency (EPA) issued an Enforcement Alert regarding its work under the AIM Act to phase down the production and consumption of HFCs. The agency’s new alert provides information on common compliance issues observed with the importation of bulk HFCs and highlights recent civil and criminal enforcement actions. The alert is intended to help ensure that companies comply with the law and take the necessary steps to avoid potential EPA enforcement actions. 

The AIM Act mandates an 85% 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 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°C. 

“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,” said David M. Uhlmann, assistant administrator of EPA’s Office of Enforcement and Compliance Assurance. 

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. 

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. 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. 

EPA encourages the public to report those suspected of illegally importing HFCs to its Report Environmental Violations webpage. Information submitted will be forwarded to EPA environmental enforcement personnel or the appropriate regulatory authority.