Tuesday, March 24, 2009

The Reality of the EPA Penalty

By Daniel Stouffer

Refrigeration and air-conditioning systems; commercial refrigeration; heating, ventilation and air conditioning systems; fire protection systems; and other equipment using refrigerant gas are part of the phase out program now underway in the United States. Facilities that use this ozone-depleting gas risk a significant EPA penalty by not following requirements under the U.S. Clean Air Act.

Preventing a costly EPA penalty requires companies, municipalities and property managers to follow strict documentation requirements for refrigerant equipment. This means monitoring its usage and submitting records that indicate refrigerant management efforts. To avoid hefty fines, many facilities use refrigerant tracking and reporting programs. They are automated, so identifying leaks, tracking repairs and tracing disposal are all done with minimal effort. An automated management program enables them to stay up-to-date with polices and procedures, compliance regulations and penalties for non-compliance.

The Office of Enforcement and Compliance Assurance handles the EPA penalty part of the U.S. Clean Air Act aimed at reducing harmful gas emissions. They are in charge of enforcing the requirements and pursuing violators. As part of their responsibilities, spot inspections are conducted by auditors and inspectors to review a facility's records regarding regulated gases. Heavy fines can be imposed if there is no documentation or records are incomplete or missing data.

Facilities that improperly emit, vent, or dispose of refrigerant gas are subject to the EPA penalty. Fines of up to $25,000 a day, per violation can be charged for improper servicing and unsafe removal of any equipment using restricted substances. Fines are also applied if refrigerant gas is improperly recovered. There is a technician certification program established by the government for those who provide service, repair, maintenance, or disposal of equipment containing refrigerant gases. The program is designed to minimize the chances of a hefty fine.

There are substantial costs to violators, so it's essential for businesses and municipalities to track every pound of gas and manage its inventory across all locations. According to the EPA penalty guidelines, a $32,500 fine per day, per unit is assessed for refrigerant leaks not fixed within 30 days and a $300K per 30 pound cylinder is levied for the illegal purchase of used or imported refrigerant gas.

Under the law, comments are being accepted and updates and proposals can be made. But on January 1, 2010, the phase out of refrigerant gas is official and the EPA penalty is more strictly enforced. The government agency is already taking civil and criminal actions against companies nationwide who violate the law, collecting billions of dollars in fines to date.

The problem with refrigerant gas is that it contains chlorofluorocarbons and hydrochlorofluorocarbons. These compounds have been proven to cause major damage to the ozone layer. The plan is to reduce the use of refrigerant gas by 75% by 2010 and eliminate it entirely by 2015. As the phase-out plan rolls out, the EPA penalty increases according to the various stages.

EPA penalty policies are based on the guidelines established by the U.S. Clean Air Act, and its international counterparts, the Montreal Protocol and the Kyoto Protocol, to control the use of refrigerant gas as a means of reducing the damaging impact it has on the ozone layer and lower the potential for global warming. Penalties are being issues to protect the environment and to encourage facilities to improve their carbon foot print.

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