Freezetone Products, LLC (Board decision, May 29, 2025)

In re Freezetone Products, LLC (EAB CAA Appeal No. 25-06C): HFC-import settlement approved

Decision type
Board decision
Docket
CAA 25-06C
Decided
May 29, 2025
Outcome
Settled
Precedential status
Citable Board precedent
Checked against source
2026-08-21

Apply this precedent to your situation

This is citable Board precedent from 2025, and it may have been appealed since. Ezel checks how it stands today and answers your situation, with citations.

Final EAB decision
This Environmental Appeals Board Final Order is a final disposition of the enforcement proceeding. The Board ratified the Expedited Settlement Agreement, ordered Freezetone Products, LLC to comply with its terms, and approved a $40,000 civil penalty. The full text below is the official EPA release.
About this page: The plain-English summary and decision snapshot below were written by Ezel based on the official EPA EAB release. The full text is the agency's own release.
Read the official release (epa.gov)

Plain-English summary

Freezetone Products, LLC imported bulk hydrofluorocarbons in two shipments that arrived in the United States on June 29, 2024, and August 17, 2024. EPA alleged that the company imported 31,346.1 kilograms of regulated substances without expending the required consumption or application-specific allowances. Freezetone agreed to settle the alleged violations, completed corrective action by exporting the subject products, and agreed to pay a $40,000 civil penalty. The EAB ratified the Expedited Settlement Agreement and ordered compliance.

Decision snapshot

  • Cited authorities: American Innovation and Manufacturing Act; 42 U.S.C. §§ 7413 and 7675; 40 C.F.R. parts 13, 22, and 84
  • Outcome: The Expedited Settlement Agreement was ratified, Freezetone was ordered to comply with its terms, and a $40,000 civil penalty was assessed.
  • Key point: Importers of bulk HFCs must have and expend the required allowances for the regulated substances they import.

Full text (EPA EAB public release)

                                                                       F I L E D
                                                                          May 29, 2025
                                                                     Clerk, Environmental Appeals Board
                                                                     INITIALS ________________________
                 ENVIRONMENTAL APPEALS BOARD
 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON,
                            D.C.

                                           )
                                           )

In re Freezetone Products, LLC ) Docket No. CAA-2024-008459
)
)

                                      FINAL ORDER

    Pursuant to 40 C.F.R. § 22.18(b)-(c) of EPA’s Consolidated Rules of Practice Governing the

Administrative Assessment of Penalties and the Revocation/Termination or Suspension of Permits, the attached Expedited Settlement Agreement resolving this matter is incorporated by reference into this Final Order and is hereby ratified.

  The Respondent is ORDERED to comply with all terms of the Expedited Settlement

Agreement, effective immediately.
So ordered.1

                                                      ENVIRONMENTAL APPEALS BOARD

Dated: May 29, 2025
Mary Kay Lynch
Environmental Appeals Judge

   1
    The three-member panel ratifying this matter is composed of Environmental Appeals

Judges Wendy L. Blake, Mary Kay Lynch, and Ammie Roseman-Orr. ENVIRONMENTAL APPEALS BOARD
UNITED STA TES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C.

                                             )

In re: )
) Docket No. CAA-2024-008459
Freezetone Products, LLC )
)
)

                    • -- - -- -)

            EXPEDITED SETTLEMENT AGREEMENT

                       A.      JURISDICTION
            
  1. This is an expedited administrative penalty assessment proceeding brought for alleged
    violations of the American Innovation in Manufacturing Act of 2020 ("AIM Act"), 42 U.S.C.
    § 7675, which governs the import of hydrofluorocarbons ("HF Cs"). This proceeding is brought under Section l 13(d) of the Clean Air Act ("CAA"), 42 U.S.C. § 7413(d), which authorizes the United States Environmental Protection Agency ("EPA") to bring administrative civil enforcement actions.

  2. This Expedited Settlement Agreement ("Agreement") is entered into under Section 113(d) of
    the CAA, as amended, 42 U.S.C. § 7413(d), and the Consolidated Rules of Practice Governing the Administrative Assessment of Penalties and the Revocation/Termination or Suspension of Permits, 40 C.F.R. Part 22.

  3. Complainant is the United States Environmental Protection Agency. On the EPA's behalf,
    Mary E. Greene, Director, Air Enforcement Division, is delegated the authority to settle civil administrative penalty proceedings under Section 113(d) of the Act.

  4. Respondent is Freezetone Products, LLC, and is a "person" as defined below and identified
    further in Table 1 of Expedited Settlement Agreement ("ESA") Attachment 1.

  5. Complainant and Respondent (together, the "Parties"), having agreed that settlement of this
    action is in the public interest, consent to the issuance of the attached final order ("Final Order" or "Order") ratifying this Agreement before taking testimony and without adjudication of any issues of law or fact herein, and Respondent agrees to comply with the terms of this Agreement and Final Order.

  6. The Environmental Appeals Board is authorized to ratify this Agreement, which
    memorializes a settlement between Complainant and Respondent. 40 C.F.R. §§ 22.4(a) and

    1. l 8(b ).
      In re: Freezetone Products LLC
      Docket No. CAA-2024-008459
  7. The ratification of the Final Order, incorporating this Agreement, simultaneously commences
    and concludes this proceeding. 40 C.F.R. § 22.13(b).

                              B.      GOVERNING LAW
    
  8. This proceeding arises under the AIM Act, 42 U.S .C. § 7675 , and Section 113 of the CAA,
    42 U.S.C . § 7413, and the regulations promulgated thereunder, which impose limits on HFC production and consumption.

  9. The EPA is authorized to enforce the AIM Act and any regulation promulgated thereunder
    pursuant to the federal enforcement authorities established by Section 113(a) of the CAA. 42 U.S.C. § 7675(k)(l )(C).

  10. The EPA regulations at 40 C.F.R. Part 84, Subpart A, implement the AIM Act requirement to
    phase down HFC production and consumption.

  11. The regulations at 40 C.F.R. Part 84, Subpa1t A, apply to anyone who impo1ts a regulated
    substance. 40 C.F.R. § 84. l(b).

  12. The regulations at 40 C.F .R. § 84.S(b )(1) state that: "[ n]o person may import bulk regulated
    substances, either as a single component or a multicomponent substance, except . . . [i]f the
    importer of record possesses at the time they are required to submit rep01ts to EPA pursuant
    to § 84.31 (c)(7), and expends at the time of ship berthing for vessel anivals, border crossing
    for land anivals such as tmcks, rails, and autos, and first point of terminus in U.S.
    jurisdiction for anivals via air, consumption or application-specific allowances in a quantity
    equal to the exchange-value weighted equivalent of the regulated substances imported,
    whether present as a single component or a multicomponent blend."

  13. The regulations at 40 C.F.R. § 84.5(b)(7) state that "every kilogram of bulk regulated
    substances imported ... constitutes a separate violation of this subpart."

  14. The definitions, listed at 40 C.F.R. Part 84, Subpart A, include:

    a) An "allowance" is defined as a "limited authorization for the production or consumption
    of a regulated substance established under subsection (e) of Sectionl 03 in Division S,
    Innovation for the Environment, of the Consolidated Appropriations Act, 2021 (Pub. L.
    116-260) (the AIM Act). An allowance allocated under subsection (e) of Section 103 in
    Division S of the AIM Act does not constitute a propc1ty right." 40 C.F.R. § 84.3.

    b) An "application-specific allowance" is defined as "a limited authorization granted in
    accordance with subsection (e)(4)(B)(iv) of the AIM Act for the production or import of a
    regulated substance for use in the specifically identified applications that are listed in that
    subsection and in accordance with the restrictions contained at§ 84.S(c)." 40 C.F.R.
    § 84.3.

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    In re: Freezetone Products LLC
    Docket No. CAA-2024-008459

c) "Bulk" is defined as "a regulated substance of any amount that is in a container for the
transportation or storage of that substance such as cylinders, drums, ISO tanks, and small
cans. A regulated substance that must first be transfen-ed from a container to another
container, vessel, or piece of equipment in order to realize its intended use is a bulk
substance. A regulated substance contained in a manufactured product such as an
appliance, an aerosol can, or a foam is not a bulk substance." 40 C.F.R. § 84.3.

d) "Consumption allowances" are "a limited authorization to produce and import regulated
substances; however, consumption allowances may be used to produce regulated
substances only in conjunction with production allowances." 40 C.F.R. § 84.3.

e) "Exchange value" is defined as the "value assigned to a regulated substance in
accordance with AIM Act subsections (c) and (e), as applicable, and as provided in
Appendix A to 40 C.F.R. Part 84." 40 C.F.R. § 84.3.

f) "Exchange value equivalent" is defined as "the exchange value-weighted amount of a
regulated substance obtained by multiplying the mass of a regulated substance by the
exchange value of that substance." 40 C.F.R. § 84.3.

g) "Import" is defined as "to land on, bring into, or introduce into, or attempt to land on,
bring into, or introduce into, any place subject to the jurisdiction of the United States,
regardless of whether that landing, bringing, or introduction constitutes an importation
within the meaning of the customs laws of the United States. Offloading used regulated
substances recovered from equipment aboard a marine vessel, aircraft, or other aerospace
vehicle during servicing is not considered an import." 40 C.F.R. § 84.3.

h) "Importer" is defined as "any person who imports a regulated substance into the United
States. 'Importer' includes the person primarily liable for the payment of any duties on
the merchandise or an authorized agent acting on his or her behalf. The tenn also
includes: (1) [t]he consignee; (2) [t]he impmter of record; (3) [t]he actual owner; or (4)
[t]he transferee, if the right to draw merchandise in a bonded warehouse has been
transferred." 40 C.F.R. § 84.3.

i) "Person" is defined as "any individual or legal entity, including an individual,
corporation, paitnership, association; state, municipality, political subdivision of a state,
Indian tribe; any agency, department, or instrumentality of the United States; and any
officer, agent, or employee thereof." 40 C.F.R. § 84.3.

j) "Regulated substance" is defined as "a hydrotluorocarbon listed in the table contained in
subsection (c)( 1) of the AIM Act and a substance included as a regulated substance by
the Administrator under the authority granted in subsection (c)(3)." 40 C.F.R. § 84.3 .

  1. A current list of regulated substances, their chemical formulas, and their exchange values can
    be found in Appendix A to 40 C.F.R. Part 84. See 40 C.F.R. § 84.3.

                                             3
    

    In re: Freezetone Products LLC
    Docket No. CAA-2024-008459

  2. The exchange value of a blend is calculated by summing the exchange value of each
    constituent of the blend multiplied by the nominal mass fraction of the constituent within that
    blend. 40 C.F.R. § 84.64.

                      C.      ALLEGED VIOLATION OF LAW
    
  3. The EPA alleges that, on or about June 29, 2024, and August 17, 2024, Respondent violated
    the prohibition on importing bulk regulated substances into the United States without
    expending allowances as required by 40 C.F.R. § 84.5(b) for each of the 31,346.1 kg
    identified in Table 1 of ESA Attachment 1.

                      D.      TERMS OF AGREEMENT
    
  4. For the purpose of this proceeding, as required by 40 C.F.R. § 22. l 8(b )(2), Respondent:

    a. admits that the EPA has jurisdiction over the subject matter alleged in this
    Agreement;
    b. admits the facts stipulated in Table 1 ofESA Attachment 1;
    c. consents to the assessment of a civil penalty as stated in Table 3 of ESA
    Attachment 1 and below;
    d. waives any right to contest the alleged violations of law set forth in Section C of
    this Agreement; and
    e. waives its right to appeal the Final Order accompanying this Agreement.

  5. By signing this Agreement, respondent waives any rights or defenses that respondent has or
    may have for this matter to be resolved in federal court, including but not limited to any right
    to a jury trial, and waives any right to challenge the lawfulness of the Final Order
    accompanying this Agreement.

  6. For the purpose of this proceeding, Respondent:

    a.     agrees that this Agreement states a claim upon which relief may be granted
           against Respondent;
    b.     acknowledges that this Agreement constitutes an enforcement action for purposes
           of considering Respondent's compliance history in any subsequent enforcement
           actions related to the Respondent;
    c.     certifies that it completed the corrective action as set forth in Table 4 of ESA
           Attachment 1;
    d.     waives its right to request a hearing, any right to contest the allegations in this
           Expedited Settlement Agreement and Final Order and its right to appeal this
           Expedited Settlement Agreement and Final Order;
    e.     consents to personal jurisdiction in any action to enforce this Agreement or Order,
           or both, in an appropriate United States District Court; and
    f.     waives any rights it may possess at law or in equity to challenge the authority of
           the EPA to bring a civil action in an appropriate United States District Court to
           compel compliance with the Agreement or Order, or both, and to seek an
    
                                              4
    

    In re: Freezetone Products LLC
    Docket No . CAA-2024-008459

            additional penalty for noncompliance with the Agreement or Order, and agrees
            that federal law shall govern in any such civil action.
    
                            E.     TERMS OF PAYMENT
    
  7. Respondent agrees to pay a civil penalty in the amount of $40,000 ("Assessed Penalty"),
    which is stated in Table 3 of ESA Attachment 1, within thirty (30) calendar days after the
    date the Final Order ratifying this Agreement is filed with the Clerk of the Environmental
    Appeals Board ("Filing Date"). Respondent shall pay the Assessed Penalty and any interest,
    fees, and other charges due using any method, or combination of appropriate methods, as
    provided on the EPA website: https: //www.epa.gov/financial/makepayment. For additional
    instructions see: https://www.epa.gov/financial/additional-instructions-making-payments-
    epa.

  8. When making a payment, Respondent shall:

       a.   Identify every payment with Respondent's name and the docket number of this
            Agreement, CAA-2024-008459.
    
       b. ConcutTently with any payment or within 24 hours of any payment, Respondent
          shall serve proof of such payment (electronic correspondence is preferred) to the
          following person(s):
    
            Tommie Madison, Clerk of the Environmental Appeals Board
            U.S. Environmental Protection Agency, Headquai1ers
            1200 Pennsylvania Avenue, NW
            Mail Code 1103M
            Washington, DC 20460-0001
            Clerk EAB(a),epa.gov
    
            Ethan Thompson, Attorney Advisor
            U.S. Environmental Protection Agency, Headquarters
            2.2202 H, William Jefferson Clinton Building South
            1200 Pennsylvania Avenue, N.W.
            Washington, DC 20460
            Mail Code 2242A
            [email protected]
    
            and
    
            U.S. Environmental Protection Agency
            Cincinnati Finance Center
            Via electronic mail to:
            CJNWD [email protected]
    
            "Proof of payment" means, as applicable, a copy of the check, confirmation of
    
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    In re: Freezctone Products LLC
    Docket No. CAA-2024-008459

          credit card or debit card payment, or confirmation of wire or automated
          clearinghouse transfer, and any other information required to demonstrate that
          payment has been made according to EPA requirements, in the amount due, and
          identified with the appropriate docket number and Respondent's name.
    
  9. Interest, Charges, and Penalties on Late Payments. Pursuant to 42 U.S.C. § 7413(d)(5), 31
    U.S.C. § 3717, 31 C.F.R. § 901.9, and 40 C.F.R. § 13.11, if Respondent fails to timely pay
    any portion of the Assessed Penalty per this Agreement, the entire unpaid balance of the
    Assessed Penalty and all accrued interest shall become immediately due and owing, and the
    EPA is authorized to recover the following amounts.

        a. Interest. Interest begins to accrue from the Filing Date. If the Assessed Penalty is
            paid in full within thirty (30) days, interest accrued is waived. If the Assessed
            Penalty is not paid in full within thirty (30) days, interest will continue to accrue
            until any unpaid po1iion of the Assessed Penalty as well as any interest, penalties,
            and other charges are paid in full. Per 42 U.S.C. § 7524(c)(6), interest will be
            assessed pursuant to 26 U.S.C. § 6621 (a)(2), that is the IRS standard
            underpayment rate, equal to the Federal short-term rate plus 3 percentage points.
    
        b. Handling Charges. The United States' enforcement expenses including, but not
           limited to, attorneys' fees and costs of handling collection.
    
       c. Late Payment Penalty. A ten percent (10%) quarterly non-payment penalty.
    
  10. Late Penalty Actions. In addition to the amounts described in the prior Paragraph, if
    Respondent fails to timely pay any portion of the Assessed Penalty per this Agreement, the
    EPA may take additional actions. Such actions the EPA may take include, but are not limited
    to, the following.

       a. Refer the debt to a credit reporting agency or a collection agency, pursuant to 40
          C.F.R. §§ 13.13 and 13.14.
    
       b. Collect the debt by administrative offset (i.e., the withholding of money payable by
          the United States government to, or held by the United States government for, a
          person to satisfy the debt the person owes the United States government), which
          includes, but is not limited to, referral to the Internal Revenue Service for offset
          against income tax refunds, pursuant to 40 C.F.R. Part 13, Subparts C and H.
    
       c. Suspend or revoke Respondent's licenses or other privileges, or suspend or
          disqualify Respondent from doing business with the EPA or engaging in programs
          the EPA sponsors or funds, pursuant to 40 C.F .R. § 13 .17.
    
       d. Request that the Attorney General bring a civil action in the appropriate district
          court to enforce the Final Order and recover the full remaining balance of the
          Assessed Penalty, in addition to interest and the amounts described above,
          pursuant to 42 U.S.C. § 7413(d)(5). In any such action, the validity, amount, and
    
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    In re: Freezctone Products LLC
    Docket No. CAA-2024-008459

           appropriateness of the Assessed Penalty and Final Order shall not be subject to
           review.
    
  11. Allocation of Payments. Pursuant to 31 C.F.R. § 901.9(f) and 40 C.F.R. § 13.1 l(d), a partial
    payment of debt will be applied first to outstanding handling charges, second to late penalty
    charges, third to accrued interest, and last to the principal that is the outstanding Assessed
    Penalty amount.

  12. Tax Treatment of Penalties. Pursuant to 26 U.S.C. § 162(f), penalties, interest, and other
    charges paid pursuant to this Agreement shall not be deductible for purposes of federal taxes.

  13. By signing this Agreement, Respondent certifies that the information it has supplied
    concerning this matter was at the time of submission true, accurate, and complete for each
    such submission, response, and statement. Respondent acknowledges that there are
    significant penalties for submitting false or misleading information, including the possibility
    of fines and imprisonment for knowing submission of such information, under 18 U.S.C.
    § 1001.

  14. By signing this Agreement, Respondent acknowledges that this Agreement and Order,
    including identifying infonnation such as name, federal tax ID number, mailing and e-mail
    address, will be available to the public when the Agreement and Certificate of Service are
    filed and uploaded to a searchable database and agrees that this Agreement does not contain
    any confidential business information or other personally identifiable information.

  15. By signing this Agreement, the undersigned representative of Complainant and the
    undersigned representative of Respondent each ce1iify that they are fully authorized to
    execute and enter into the terms and conditions of this Agreement and has the legal capacity
    to bind the pa1iy they represent to this Agreement.

  16. By signing this Agreement, Respondent agrees to acceptance of the Complainant's: (a)
    digital or an original signature on this Agreement; and (b) service of the fully executed
    Agreement on the Respondent by mail or electronically by e-mail. Respondent understands
    that the mailing or e-mail address may be made public when the Agreement and Certificate
    of Service are filed and uploaded to a searchable database. Complainant agrees to acceptance
    of the Respondent's digital or an original signature on this Agreement.

  17. Each paiiy shall bear its own attorney's fees, costs, and disbursements incurred in this
    proceeding.

      E.       EFFECT OF AGREEMENT AND ATTACHED FINAL ORDER
    
  18. In accordance with 40 C.F.R. § 22.l8(c), completion of the terms of this Agreement and
    Final Order resolves only Respondent's liability for federal civil penalties for the violations
    identified in Section C of this Agreement.

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    In re: Freezctone Products LLC
    Docket No. CAA-2024-008459

  19. This Agreement constitutes the entire agreement and understanding of the Parties and
    supersedes any prior agreements or understandings among the Parties with respect to the
    subject matter hereof.

  20. The te1ms, conditions, and compliance requirements of this Agreement may not be modified
    or amended after it is ratified except upon the written agreement of both parties, and approval
    of the Environmental Appeals Board.

  21. Any violation of this Agreement or Order may result in a civil judicial action for an
    injunction, or civil penalties ofup to $124,426 per day per violation (with each kilogram a
    separate violation), or both, as provided in Section l l3(b)(2) of the Act, 42 U.S.C. §
    7413(b)(2), as well as criminal sanctions as provided in Section l 13(c) of the Act, 42 U.S.C.
    § 74 l 3(c). The EPA may use any information submitted under this Agreement in an
    administrative, civil judicial, or criminal action.

  22. Nothing in this Agreement shall relieve Respondent of the duty to comply with all applicable
    provisions of the Act and other federal, state, or local laws or statutes, nor shall it restrict the
    EPA 's authority to seek compliance with any applicable laws or regulations, nor shall it be
    constrned to be a rnling on, or determination of, any issue related to any federal, state, or
    local pe1mit.

37 . Nothing herein shall be construed to limit the power of the EPA to undertake any action
against Respondent or any person in response to conditions that may present an imminent
and substantial endangennent to the public health, welfare, or the environment.

3 8. The EPA reserves the right to revoke this Agreement and settlement penalty if and to the
extent that the EPA finds, after signing this Agreement, that any info1mation provided by
Respondent was materially false or inaccurate at the time such information was provided to
the EPA, and the EPA reserves the right to assess and collect any and all civil penalties for
any violation described herein. The EPA shall give Respondent notice of its intent to revoke,
which shall not be effective until received by Respondent.

  1. Respondent and Complainant agree to the Environmental Appeals Board's issuance of the
    attached Final Order ratifying the Agreement.
                                                8
    

    The foregoing Agreement In the Matter c!fFreezetone Products, LLC, Docket No. CAA-2024- 008459 is Hereby Stipulated, Agreed, and Approved.

FOR COMPLAINANT:
Digitally signed by
MARY MARY GREENE
Date: 2025.05.22
GREENE 15:35:05 -04'00'

Signature

Mary E. Greene
Director, Air Enforcement Division
Office of Enforcement and Compliance Assurance
U.S . Environmental Protection Agency
The foregoing Agreement In the Matter ofFreezetone Products, LLC, Docket No. CAA-2024- 008459 is Hereby Stipulated, Agreed, and Approved.

FOR RESPONDENT:

Si~~

Printed Name:
ESA ATTACHMENT

  AMERICAN INNOVATION AND MANUFACTURING ("AIM") ACT

OFFSITE COMPLIANCE MONITORING ACTIVITY OR INSPECTION FACTS, ALLEGED VIOLATIONS, PENALTY, AND CORRECTIVE ACTION FORM

 Ta hlc 1 - Offsite Co1111>lia nce Monitorini.: Activity or Inspection St i1rnlated Facts

Offsite Compliance Mon itoring Activity Docket Number: or Inspecti on Date(s): Shipment 219 187782:54: July 12, 2024 CAA-2024-008459 Shi))ment 22424633942: August 22, 2024 Offsite Comp liance Monitoring Activ ity Shipment/F:ntry Number(s): or Inspection Locat ion: Mia mi, Florida Shipment 2 19 18778254/Entiy No. ITC-
00237182
Shipment 22424633942/No ~ntry Fi led
Person /Importer Narne(" Respondent") lnspector(s) Name(s) and Ema il Address: and lm(!orter Number: freezetone Products, LLC Alccka Broner; broner.alecka@q~a.gov Respondent Address: Date of Detention or Hold: 7986 NW 14th Street, Shipment 2 l 9 18778-254: July 11 , 2024 Doral, Florida 33126 Shipment 22424633942: August 22, 2024 Va lue of Goods: Arrival Date: Sh ipment 21918778254: $65,998 .80 Shipment 21918778254: June 29, 2024 Sh ipment 22424633942: $70,519.00 Shipment 22424633942: August J 7, 2024
Combined Value: S136,517.80
Suh_ject 1-IFCs and Mass (in ke) : MTEVe:
Shipment 21918778254: Shipment 21918778254: 16,978. J I 1,872.8 kg of HFC-134a Shipment 22424633942: 50,734.5
Combined MTEVe: 67,712.6
Shipment 22424633942:
9,503.3 kg ofR-410A 1
5,450 kg of l{-404A 2
4,520 kg of R-407 A3
Combined Mass: 31,346.1 kg
Did the importer have an d expend Container and Quantity: allowances eg_ual to the imported HFCs'? No Shipment 21918778254: 34,920 cans of
1-IFC-134a

                                                                                              Li



                                                                                           ~
                                                                                           /' .
                                                                                                            "

' R-4l OA irn II FC blead composed ofS 0% HFC- 125 a,,d50% HFC-32. 1 R-404A is an HFC blend composed of 52% HFC-l 34a, 44% HFC-125, and 4% HFC-l 34a. C/ J R-407A is an HFC blend composed of 40% HFC-134a, 40% HFC-125, and 20% HFC-12. For more information on the co11132osition of 1-IFC blends sccwww.e32a.gov/sna32/co11132ositions-rcfrigcrant-blc11ds. Table 1 - Offsite Compliance Monitoring Activity or Inspection Stipulated Facts
Shipment 22424633942: 841 cylinders of
R-410A, 500 cylinders of R-404A, 400
cylinders ofR-407A
Did the importer receive any non-objection The EPA Delegated Official: notices from the EPA? No Mary E. Greene

                      Table 2 - Description of Alleged Violation

Based on the facts in Table 1, the EPA alleges that the Subject HFCs are bulk regulated substances that were imported without the impo1ier expending consumption or application-specific allowances in a quantity equal to the exchange-value weighted equivalent of the regulated substances imported, a violation of the HFC Allocation regulations at 40 C.F.R. & 84.5(b). Table 3 - Civil Penalty 4
$40,00 where

 $136,517.80 * 30% = $40,955
 Rounded down to the nearest $1,000 = $40,000


 Monetary Value of Goods* Percentage Multiplier= Penalty, where

HFC EV 5                 Percentage             HFC                    EV
                         Multiplier             HFC-152                                 53
< 1,300               20%                       HFC--41                                 92
> 1,300 < 5,000       30%                       HFC-152a                               124
> 5,000 < 10,000      40%                       HFC- 143                               353
>10,000 < 15,000      50%                       HFC-32                                 675
                                                HFC- 245ca                             693
                                                HFC-365mfc                             794
                                                HFC-245fa                            1,030
                                                HFC-134a                             1,100
                                                HFC-236cb                            1,340
                                                HFC-236ea                            1,370
                                                HFC-134a                             1,430
                                                HFC--43-1 Omee                       1,640
                                                HFC-227ea                            3,220
                                                HFC-125                              3,500
                                                HFC-l43a                             4,470
                                                HFC-236fa                            9,810
                                                HFC-23                              14,800

4
To determine the EV of a HFC blend, calculate the contribution of each HFC to the total EV of the blend and calculate a case-specific EV multiplier by: multiplying the percentage of the blend made up of each HFC by its EV and summing the resulting blend constituent products to calculate the blend EV. For example, if the percentages of the blend and the EVs (in parentheses) of the constituents are: 55 percent HFC-32 (675), 16 percent HFC-125 (3,500), and 29 percent HFC-134a (1,430), the EV would be (0.55 x 675) + (0. 16 x 3,500) + (0.29 x 1,430)) = 1345.95 EV. Where the exact amount or percentage of each HFC in a blend is unknown, the case team shall use the highest EV associated with a HFC in the blend as a multiplier to calculate the penalty. 5 EVs are found in Appendix A of 40 C.F.R. Part 84. Table 4 - Corrective Action

Respondent certifies that it:

    has exported the Subject Regulated Products to b\!:>,(l.\e,v\00)(..A A\110 fl\-a.15
   5.f\. ~o~ 1::>0t.,\\f..)C.,0 f'st>,~Aa.- c..J\l..,L~ P~\~Cl     ~< - ~~
   [name and address (including country) of the recipient of the exports], a country other
   than Canada or Mexico (unless the point of entry to the U.S. for the Subject Regulated
   Producti,,was through Canada or Mexico), and has paid
   $[     ~ \ "2.S~.0O                 ] to perform the action to export the Subject
   Regulated Products.

   will submit to the EPA at [email protected], within thirty (30) days of the
   Effective Date of the ESA a record documenting such payment for export of the
   Subject Regulated Products.

Respondent must check the boxes,fill in all relevant blanks, and return any enclosures, as aoolicable, and this Attachment 1 with the sil!ned Al!reement. CERTIFICATE OF SERVICE

   I certify that copies of the foregoing “Expedited Settlement Agreement” and “Final Order,” in

the matter of Freezetone Products, LLC Docket No. CAA-2024-008459 were sent to the following persons in the manner indicated:

       By Electronic Mail:
       Ethan Thompson
       Attorney-Advisor
       United States Environmental Protection Agency
       Air Enforcement Division
       [email protected]

       Luis Latour
       President
       Freezetone Products
       [email protected]

       Angel Soler
       Freezetone Products
       [email protected]

Dated: May 29, 2025
Tommie Madison
Clerk of the Board

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