EPA v. COSTCO WHOLESALE CORPORATION (NATIONAL CASE)

Case summary

9/3/14 - Costco Wholesale Corp, the nation?s second largest retailer, has agreed to cut its emissions of ozone-depleting and greenhouse gas chemicals from refrigeration equipment at more than half of its stores nationwide. In the settlement announced today by EPA and DOJ, Costco will pay $335,000 in penalties for federal CAAct violations and improve refrigerant management at 274 stores at an estimated cost of $2 million over the next 3 yrs. ?Cutting harmful greenhouse gas emissions is a national priority for EPA, and this settlement will lead to significant reductions of an ozone-depleting gas that is 1,700 times more potent than carbon dioxide,? said Cynthia Giles, asst administrator for EPA?s Office of Enforcement and Compliance Assurance. ?Fixing leaks of refrigerants, improving compliance and reducing emissions will make a real difference in protecting us from the dangers of ozone depletion, while reducing the impact on climate change.? Costco violated the federal CAA by failing to repair leaks of the refrigerant R-22, a hydrochlorofluorocarbon and a powerful ozone-depleting substance, between 2004 and 2007. Costco also failed to keep adequate records of the servicing of its refrigeration equipment, required by the CAA to prevent harmful leaks. Under the settlement, Costco will implement a refrigerant management system to prevent and repair coolant leaks and reduce its corporate-wide average leak rate by one-fifth (from 24% in 2011 to 19% or less by 2017). Costco will install and operate environmentally friendly glycol secondary loop refrigeration systems and centrally monitored refrigerant leak detection systems at all new stores for three years. As required by the settlement, Costco will retrofit commercial refrigeration equipment at 30 stores, reducing ozone-depleting and greenhouse gas emissions. The measures required of Costco by the settlement are expected to prevent more than 105,000 pounds of future releases of ozone-depleting refrigerants that destroy the ozone layer. Destroying the ozone layer results in dangerous amounts of cancer-causing ultraviolet solar radiation striking the earth, increasing skin cancers and cataracts. R-22 is also a potent greenhouse gas with 1,700 times more global warming potential than carbon dioxide or CO2. The measures required by the settlement are expected to reduce Costco?s greenhouse gas emissions by the equivalent of approximately 30,000 metric tons of carbon dioxide per year. The settlement is part of EPA?s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including large grocery stores. Clean Air Act Title VI requires owners or operators of commercial refrigeration equipment with over 50 pounds of ozone-depleting refrigerants, and with an annual leak rate greater than 35 percent, to repair all leaks within 30 days. Corporate commitments to reduce emissions from refrigeration systems have been increasing in recent years. EPA?s GreenChill Partnership Program works with food retailers to reduce refrigerant emissions and decrease their impact on the ozone layer and climate change by transitioning to environmentally friendlier refrigerants, using less refrigerant and eliminating leaks, and adopting green refrigeration technologies and best environmental practices. Costco, headquartered in Issaquah, Wash., operates 466 stores in 43 U.S. states, the District of Columbia, and Puerto Rico, and additional stores worldwide, with revenues of $105.2 billion in 2013. The settlement covers 274 Costco stores that have commercial refrigeration equipment regulated by the Clean Air Act. The proposed settlement is subject to a 30-day public comment period and final court approval.

Defendants (1)

• COSTCO WHOLESALE CORPORATIONNamed in complaintNamed in settlement

Facilities (63)

• COSTCO WHOLESALE #354

  6275 NAPLES BLVD, NAPLES, FL, 341092030

  Registry ID: 110005658234

• COSTCO WHOLESALE 338

  1021 OAK FOREST LN, MYRTLE BEACH, SC, 29577

  Registry ID: 110016712253

• COSTCO

  4201 WEST WENDOVER AVENUE, GREENSBORO, NC, 27407

  Registry ID: 110060350677

• COSTCO #361

  1085 HANES MALL BLVD, WINSTON SALEM, NC, 27103

  Registry ID: 110006541518

• COSTCO WHOLESALE #186

  1700 MOUNT ZION RD, MORROW, GA, 30260

  Registry ID: 110005702070

• COSTCO WHOLESALE #353

  3775 HACKS CROSS ROAD, MEMPHIS, TN, 38125

  Registry ID: 110008134321

• COSTCO WHOLESALE #345

  17800 CONGRESS AVE, BOCA RATON, FL, 33487

  Registry ID: 110013301998

• COSTCO WHOLESALE #635

  5351 GINGERWOOD DR, WILMINGTON, NC, 28405

  Registry ID: 110031376669

• COSTCO WHOLESALE #623

  11001 SOUTHERN BLVD, ROYAL PALM BEACH, FL, 33411

  Registry ID: 110031302855

• COSTCO WHOLESALE #630

  6670 CHARLOTTE PIKE, NASHVILLE, TN, 37209

  Registry ID: 110031359973

• COSTCO WHOLESALE #358

  11201 CAUSEWAY BLVD, BRANDON, FL, 33511

  Registry ID: 110012541696

• COSTCO

  2838 WAKE FOREST ROAD, RALEIGH, NC, 27609

  Registry ID: 110060350686

• COSTCO WHOLESALE #186

  1700 MOUNT ZION RD, MORROW, GA, 30260

  Registry ID: 110005702070

• COSTCO WHOLESALE #742

  15915A PINES BLVD, PEMBROKE PINES, FL, 330271201

  Registry ID: 110022310168

• COSTCO WHOLESALE #1026

  4067 LAGNIAPPE WAY, TALLAHASSEE, FL, 32317

  Registry ID: 110035427259

• …and 48 more

Statutes cited

• CAA 608 — National Recycling & Emission Reduction Program

Enforcement conclusions (1)

• COSTCO WHOLESALE CORPORATION (NATIONAL CASE) (04-2015-C021)entered 2014-11-05

  Primary law: CAA

  Federal penalty: $37,356

Timeline (7 milestones)

• 2011-12-13Referred To Dept Of Justice
• 2011-12-15Enforcement Action Data Entered
• 2014-09-03Complaint Filed With Court
• 2014-09-03Final Order Lodged
• 2014-11-05Concluded
• 2014-11-05Final Order Entered
• 2018-04-30Enforcement Action Closed