EPA v. Interstate Brands Corporation (Bankruptcy)

Case summary

This is a request to DOJ to file a proof of claim for civil penalties as a general unsecured claim in the company's Chapter 11 bankruptcy.EPA has entered into a Settlement Agreement with Interstate Brands Corporation ( IBC ) to resolve a nationwide enforcement case involving release of ozone depleting gases. On April 14, 2009, the Department of Justice forwarded the signed Settlement Agreement to IBC so that IBC can obtain final approval from the bankruptcy court. As part of this nationwide case, in 2001 Region IX referred ten California facilities owned by Interstate Brands West Corporation, a wholly owned subsidiary of IBC, to the Justice Department for release of ozone depleting gases from industrial process refrigeration systems. Releases of ozone depleting chemicals are prohibited by Section 608 of the Clean Air Act and regulations promulgated thereunder at 40 C.F.R. Part 82, Subpart F, which limit the rate of equipment leaks in industrial process refrigeration systems. The injunctive relief sought by EPA was retrofit, retirement, or replacement of leaking industrial units. During settlement negotiations, IBC initiated bankruptcy proceedings. On March 17, 2005, DOJ filed a proof of claim for civil penalties as a general unsecured claim in the IBC Chapter 11 bankruptcy. On March 29, 2004, Region 9 received evidence that IBC had retired, retrofitted, or replaced all of the appliances for which EPA alleged violations of the stratospheric ozone regulations. Under the terms of the Settlement Agreement, IBC stipulates to a liquidated, unsecured claim in the amount of $1,125,000 in its Chapter 11 bankruptcy proceeding.

Defendants (1)

• Interstate Brands CorporationNamed in complaintNamed in settlement

Facilities (1)

• INTERSTATE BRANDS CORP

  6841 SAN FERNANDO RD, GLENDALE, CA, 91201

  Registry ID: 110010477974

Statutes cited

• CAA 608 — National Recycling & Emission Reduction Program

Enforcement conclusions (1)

• Interstate Brands Corporation (Bankruptcy)entered 2009-04-14

  Primary law: CAA

  Federal penalty: $1,125,000

Timeline (6 milestones)

• 2005-03-01Referred To Dept Of Justice
• 2005-03-17Complaint Filed With Court
• 2005-07-17Enforcement Action Data Entered
• 2009-04-14Enforcement Action Closed
• 2009-04-14Final Order Entered
• 2009-04-14Final Order Lodged