ConforMatic Inc. (Board decision, April 30, 2026)
In re ConforMatic Inc. (EAB CAA Appeal No. 26-05C): bulk HFC-import settlement approved
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Plain-English summary
ConforMatic Inc. is an air-conditioning services company headquartered in San Juan, Puerto Rico. EPA alleged that ConforMatic imported about 33,662 kilograms of bulk hydrofluorocarbons in 2022 without first expending required allowances, obtaining a non-objection notice, or filing the required advance notification. EPA also alleged that ConforMatic failed to submit required reports for the first and second quarters of 2022. The EAB ratified the settlement, which includes a $355,000 civil penalty and payment obligations.
Decision snapshot
- Cited authorities: American Innovation and Manufacturing Act; Clean Air Act § 113; 40 C.F.R. parts 13, 19, 22, and 84; 42 U.S.C. §§ 7413 and 7675
- Outcome: The Consent Agreement was ratified, and ConforMatic was ordered to pay a $355,000 civil penalty.
- Key point: Importers of bulk HFCs must use the allowance, notice, and reporting systems established under the AIM Act and 40 C.F.R. part 84.
Full text (EPA EAB public release)
F I L E D
Apr 30, 2026
Clerk, Environmental Appeals Board
INITIALS ________________________
ENVIRONMENTAL APPEALS BOARD
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C.
)
)
In re ConforMatic Inc. ) Docket No. CAA-2026-8710
)
)
)
FINAL ORDER
Decided April 30, 2026
Before Environmental Appeals Judges Aaron P. Avila and Ammie Roseman-Orr.
Order of the Board by Judge Roseman-Orr:
Pursuant to 40 C.F.R. § 22.18(b)-(c) of EPA’s Consolidated Rules of Practice, the
attached Consent 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 Consent Agreement,
effective immediately.
So ordered.
ENVIRONMENTAL APPEALS BOARD
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C.
)
In re: )
) Docket No. CAA-2026-8710
ConforMatic Inc. )
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CONSENT AGREEMENT
A. PRELIMINARY STATEMENT
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This is an administrative penalty assessment proceeding brought for alleged violations of the
American Innovation and Manufacturing Act of 2020 (“AIM Act”), 42 U.S.C. § 7675, which governs the import of bulk hydrofluorocarbons (“HFCs”), under Section 113(d) of the Clean Air Act (“CAA”), 42 U.S.C. § 7413(d), and Sections 22.13 and 22.18 of the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties and Revocation/Termination or Suspension of Permits (“Consolidated Rules”), codified at 40 C.F.R. Part 22. -
HFCs are potent chemicals that impact the environment. The United States has committed, as a
signatory of the Kigali Amendment to the Montreal Protocol, to reduce its production and consumption of HFCs by 85% in a stepwise manner by the year 2036. -
Complainant is the United States Environmental Protection Agency (“EPA”). On EPA’s behalf,
Sparsh S. Khandeshi, Acting Director, Air Enforcement Division, is delegated theauthority to settle civil administrative penalty proceedings under Section 113(d) of the CAA. -
Respondent is ConforMatic Inc. (“ConforMatic”), an air conditioning services company
headquartered in San Juan, Puerto Rico. Respondent is a “person” as defined in Section 302(e) of the CAA, 42 U.S.C. § 7602(e). Consent Agreement and Final Order – Docket No. CAA-2026-87105. Complainant and Respondent (together, the “Parties”), having agreed that settlement of this
action is in their mutual interest, consent to the issuance of the attached final order (“Final
Order” or “Order”) ratifying this Consent Settlement Agreement (“Consent Agreement” or
“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.
Furthermore, Complainant has determined, and Respondent does not dispute, that settlement of
this action is in the public interest.
B. JURISDICTION -
This Consent Agreement is entered into under Section 113(d) of the CAA, as amended, 42
U.S.C. § 7413(d), and the Consolidated Rules, 40 C.F.R. Part 22.
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The EPA and the United States Department of Justice jointly determined that this matter,
although it involves alleged violations that occurred more than one year before the initiation of
this proceeding, is appropriate for an administrative penalty assessment. 42 U.S.C. § 7413(d).
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The Environmental Appeals Board is authorized to ratify this Consent Agreement, which
memorializes a settlement between Complainant and Respondent. 40 C.F.R. §§ 22.4(a) and
22.18(b).
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The issuance of this Consent Agreement and attached Final Order simultaneously commences
and concludes this proceeding. 40 C.F.R. § 22.13(b).
C. GOVERNING LAW -
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.
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The EPA is authorized to enforce the AIM Act and any regulation promulgated thereunder
pursuant to the federal enforcement authorities established by Section 113 of the CAA, 42 U.S.C.
2 Consent Agreement and Final Order – Docket No. CAA-2026-8710§ 7413, as though the AIM Act were expressly included in Title VI of the CAA. 42 U.S.C.
§ 7675(k)(1)(C).
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The regulations at 40 C.F.R. Part 84, Subpart A, implement the AIM Act requirement to phase
down HFC production and consumption.
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The regulations at 40 C.F.R. Part 84, Subpart A, apply to any person who imports a regulated
substance. 40 C.F.R. § 84.1(b).
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The regulations at 40 C.F.R. Part 84, Subpart A, contain the following definitions:
a. An “allowance” means “a limited authorization for the production or consumption of a regulated substance established under subsection (e) of Section 103 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 property right.” 40 C.F.R. § 84.3. b. An “application-specific allowance” means “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 § 84.5(c).” 40 C.F.R. § 84.3. c. “Bulk” means “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 transferred 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. 3 Consent Agreement and Final Order – Docket No. CAA-2026-8710d. “Consumption allowances” means “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” means “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” (“EVe”) means “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” means “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” means “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 term also
includes: (1) [t]he consignee; (2) [t]he importer 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” means “any individual or legal entity, including an individual, Inc.,
partnership, association, state, municipality, political subdivision of a state, Indian tribe;
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Consent Agreement and Final Order – Docket No. CAA-2026-8710
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” means “a hydrofluorocarbon 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.
k. “Transhipment” means “the continuous shipment of a regulated substance, from a
foreign country of origin through the United States or its territories, to a second foreign
country of final destination, as long as the shipment does not enter U.S. commerce. A
transshipment, as it moves through the United States or its territories, cannot be
repackaged, sorted, or otherwise changed in condition.” 40 C.F.R. § 84.3.
- From January 1, 2022, to September 17, 2023, 40 C.F.R. § 84.5(b)(1) (2022) provided that “no
person may import bulk regulated substances, except: (i) by expending, at the time of the import, consumption or application-specific allowances in a quantity equal to the exchange-value weighted equivalent of the regulated substances imported; (ii) after receipt of a non-objection notice for regulated substances for use in a process resulting in their transformation or destruction in accordance with § 84.25(a); (iii) after receipt of a non-objection notice for used regulated substances imported for destruction in accordance with § 84.25(b); or (iv) as a transhipment in accordance with § 84.31(c)(3) if all transhipped regulated substances are exported from the United States within six months of its import. 1
1
The regulations at 40 C.F.R. Part 84, Subpart A were subsequently changed after the alleged violations in this Consent Agreement took place. If a version of the regulations was different in 2022 from the current version of the regulations, it is cited as “2022” in this Consent Agreement. Effective September 18, 2023, 40 C.F.R. § 84.5(b)(1)(i) was revised to: “[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 reports to EPA pursuant to § 84.31(c)(7), and expends at the time of ship berthing for vessel arrivals, border crossing for land arrivals such as trucks, rails, and autos, and first point of terminus in U.S. jurisdiction for arrivals 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.” (see 88 Fed. Reg. 46,836, 46,894 (July 20, 2023)).
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Consent Agreement and Final Order – Docket No. CAA-2026-8710
16. The importer of record is required to submit an advance notification report for each shipment of
regulated substances imported no later than fourteen days prior to importation. 40 C.F.R.
§ 84.31(c)(7) (2022). 2
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Within forty-five days after the end of each quarter, an importer of record of a regulated
substance must submit to the relevant Agency official a report containing the required information listed in 40 C.F.R. § 84.31(c)(1)(i) - (ix). 40 C.F.R. § 84.31(c)(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. -
The regulated substances relevant to this matter are assigned the following exchange values:
HFC Chemical Formula Exchange Value HFC-134a CH2 FCF2 1,430.0 HFC-143a CH3 CF3 4,470.0 HFC-125 CHF2 CF3 3,500.0 HFC-32 CH2 F2 675.0 40 C.F.R. Part 84, Appendix A. -
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. -
“Each person meeting the definition of importer for a particular regulated substance import
transaction is jointly and severally liable for a violation of paragraph (b)(1) of this section, unless
2
As previously discussed in footnote 1, 40 C.F.R. § 84.31(c)(7) has since been modified (along with other sections) to require that the importer of record submit an advance notification report “no later than 10 days if arriving by marine vessel or 5 days for non-marine vessel prior to the date of importation,” effective September 18, 2023 (see 88 Fed. Reg. 46,836, 46,897 (July 20, 2023)).
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Consent Agreement and Final Order – Docket No. CAA-2026-8710
they can demonstrate that another party who meets the definition of an importer met one of the
exceptions set forth in paragraph (b)(1).” 40 C.F.R. § 84.5(b)(2) (2022). 3
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“Every kilogram of bulk regulated substances imported … constitutes a separate violation of this
subpart.” 40 C.F.R. § 84.5(b)(6) (2022). 4 -
Sections 113(a)(3)(A) and 113(d)(1) of the CAA, 42 U.S.C. §§ 7413(a)(3)(A) and 7413(d)(1),
authorizes the Administrator of the EPA to assess a civil administrative penalty of not more than $25,000 per day of violation of Title VI of the CAA, or regulations promulgated thereunder. Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 101-410, as amended, and its implementing regulation, the Civil Monetary Penalty Inflation Adjustment Rule, codified at 40 C.F.R. Part 19, the statutory maximum civil administrative penalty has subsequently been raised to $59,114 per day of violation. 40 C.F.R. § 19.4, Table 1. D. STIPULATED FACTS -
ConforMatic owns and operates a facility that provides air conditioning services and is
incorporated under the laws of Puerto Rico. Respondent has its headquarters in San Juan, Puerto Rico. -
Respondent is a “person,” as that term is defined in 40 C.F.R. § 84.3.
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Respondent is an “importer,” as that term is defined in 40 C.F.R. § 84.3.
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R-404A is an HFC blend comprised of 52% HFC-143a, 44% HFC-125, and 4% HFC-134a.
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R-410A is an HFC blend comprised of 50% HFC-125 and 50% HFC-32.
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For R-404A, the Exchange Value of the blend is 3,921.6, which is calculated as follows: (0.52 x
4,470 (the Exchange Value of HFC-143a)) plus (0.44 x 3,500 (the Exchange Value of HFC-
3
This provision was also amended in 2023, with the current provision now located at 40 C.F.R. § 84.5(b)(3), effective September 18, 2023 (see 88 Fed. Reg. 46,836, 46,894 (July 20, 2023)). 4 This provision was also amended in 2023, with the current provision now located at 40 C.F.R. § 84.5(b)(7), effective September 18, 2023 (see 88 Fed. Reg. 46,836, 46,894 (July 20, 2023)).
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Consent Agreement and Final Order – Docket No. CAA-2026-8710
125)) plus (0.04 x 1,430 (the Exchange Value of HFC-134a)). See 40 C.F.R. Part 84, Appendix
A.
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For R-410A, the Exchange Value of the blend is 2,087.5, which is calculated as follows: (0.5 x
3,500 (the Exchange Value of HFC-125)) plus (0.5 x 675 (the Exchange Value of HFC-32)). See
40 C.F.R. Part 84, Appendix A.
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On or about March 2, 2022, ConforMatic imported approximately 2,862.8 kg of HFC-134a,
1,635 kg of R-404A, and 10,044.4 kg of R-410A from Kingston, Jamaica into San Juan, Puerto
Rico under Customs Entry Number ASE-00147728 (“March 2022 shipment”).
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On or about June 27, 2022, ConforMatic imported approximately 2,856 kg of HFC-134a, 2,616
kg of R-404A, and 13,648 kg of R-410A from China into San Juan, Puerto Rico under Customs
Entry Number 883756521 (“June 2022 shipment”). The HFCs detailed in this paragraph and the
preceding paragraph will be referred to collectively as “Subject HFCs.”
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The Subject HFCs are bulk regulated substances, as defined at 40 C.F.R. § 84.3.
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The Subject HFCs have a sum total Metric Tons EVe (MTEVe) of approximately 74,320,
determined through the formula specified in the definition of EVe at 40 C.F.R. § 84.3 as follows:
5,718.8 kg of HFC-134a is equivalent to approximately 8,177.9 MTEVe; 4,251 kg of R-404A is
equivalent to approximately 16,672.4 MTEVe; 23,692.4 kg of R-410A is equivalent to
approximately 49,469.7 MTEVe.
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ConforMatic was required to possess and expend 74,320 consumption or application-specific
allowances at the time Respondent imported the Subject HFCs.
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ConforMatic did not possess or expend any allowances when importing the Subject HFCs.
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ConforMatic, as importer of record of the Subject HFCs, did not file an advance notification
report for the import of the Subject HFCs prior to importation and did not receive a non-
objection notice from the EPA for the Subject HFCs.
8 Consent Agreement and Final Order – Docket No. CAA-2026-871038. ConforMatic, as importer of record of the Subject HFCs, failed to submit a report to the EPA
with information relating to the Subject HFCs, which the company imported during the first and
second quarters of 2022, within 45 days after the end of each quarter.
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The June 2022 shipment was re-exported to the Dominican Republic on August 21, 2022, and
was not consumed in the United States.
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Respondent sold the March 2022 shipment and distributed it within the United States.
E. ALLEGED VIOLATIONS OF LAW Importation of bulk HFCs without expending consumption or application-specific allowances -
Respondent imported the Subject HFCs without first expending the required allowances,
obtaining a non-objection notice, or having transhipped the Subject HFCs in accordance with 40
C.F.R. § 84.31(c)(3), in violation of 40 C.F.R. § 84.5(b)(1) (2022).
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Pursuant to 40 C.F.R. § 84.5(b)(6) (2022), every kilogram of the Subject HFCs imported
constitutes a separate violation of 40 C.F.R. § 84.5(b).
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The Subject HFCs imported by Respondent are approximately 33,662 kg, which constitutes
33,662 violations of 40 C.F.R. § 84.5(b)(1) (2022).
Failure to submit advance notification reports -
Respondent violated 40 C.F.R. § 84.31(c)(7) (2022) by failing to submit an advance notification
report for the Subject HFCs no later than fourteen days prior to importation.
Failure to submit quarterly reports -
Respondent violated 40 C.F.R. § 84.31(c)(1) by failing to submit reports to the EPA that describe
the Subject HFCs imported during the first and second quarters of 2022 within forty-five days
after the end of each quarter.
9 Consent Agreement and Final Order – Docket No. CAA-2026-8710F. TERMS OF CONSENT AGREEMENT
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For the purpose of this proceeding, as required by 40 C.F.R. § 22.18(b)(2),
Respondent:
a. admits that the EPA has jurisdiction over this matter as stated above;
b. admits the stipulated facts stated above;
c. neither admits nor denies the alleged violations of law stated above;
d. consents to the assessment of a civil penalty as stated below;
e. consents to the conditions specified in this Consent Agreement;
f. waives any right to contest the alleged violations of law; and
g. waives its rights to appeal the Order accompanying this Consent Agreement.
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For the purpose of this proceeding, Respondent:
a. agrees that this Consent Agreement states a claim upon which relief may be
granted against Respondent;b. acknowledges that this Consent Agreement constitutes an enforcement action for
purposes of considering Respondent’s compliance history in any subsequent enforcement actions related to the Respondent;c. waives any and all remedies, claims for relief and otherwise available rights to
judicial or administrative review that Respondent may have with respect to any issue of fact or law set forth in this Consent Agreement, including any right of judicial review under Section 307(b)(1) of the Clean Air Act, 42 U.S.C. § 7607(b)(1);d. 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 the Consent Agreement; 10 Consent Agreement and Final Order – Docket No. CAA-2026-8710e. consents to personal jurisdiction in any action to enforce this Agreement or Final Order,
or both, in the United States District Court for the District of Columbia;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 a United States District Court to compel compliance with this Consent Agreement or Final Order, or both, and to seek an additional penalty for noncompliance with this Consent Agreement or Final Order and agrees that federal law shall govern in any such civil action;g. acknowledges that this Consent Agreement and attached Final Order will be available
to the public and agree that it does not contain any confidential business information or personally identifiable information;h. acknowledges that its tax identification number may be used for collecting or
reporting any delinquent monetary obligation arising from this Consent Agreement (see 31 U.S.C. § 7701);i. certifies that the information it has supplied concerning this matter was at the time of
submission true, accurate, and complete; andj. acknowledges that there are significant penalties for knowingly submitting false,
fictitious, or fraudulent information, including the possibility of fines and imprisonment (see 18 U.S.C. § 1001). -
Civil Penalty. The civil penalty agreed upon by the Parties for settlement purposes is $355,000
(the “Assessed Penalty”).
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Penalty Payment. Respondent agrees to pay the Assessed Penalty to the United States in the
manner specified below:
a. Pay the Assessed Penalty within thirty calendar days of the Filing Date of this Agreement; 11 Consent Agreement and Final Order – Docket No. CAA-2026-8710b. 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.c. Identify each and every payment with “Docket No. CAA-2026-8710”; and
d. Concurrently with any payment or within 24 hours of any payment, email proof of
payment to Ethan Thompson at [email protected]. “Proof of payment” means, as applicable, confirmation of credit card or debit card payment, confirmation of wire or automated clearinghouse transfer, and any other information required to demonstrate that payment has been made according to the EPA requirements, in the amount due, and identified with “Docket No. CAA-2026-8710”. -
Failure to pay the full amount of the penalty assessed under this Consent Agreement may subject
Respondent to a civil action to collect any unpaid portion of the proposed civil penalty and
interest. In order to avoid the assessment of interest, administrative costs, and late payment
penalty in connection with such civil penalty, as described in the following four paragraphs of
this Consent Agreement, Respondent must timely pay the penalty.
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Interest, Charges, and Penalties on Late Payments. Pursuant to 42 U.S.C. § 7524(c)(6), 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 Effective Date. If the Assessed Penalty is paid in full within thirty days of the Effective Date as provided in Paragraph 49, interest accrued is waived. If the Assessed Penalty is not paid in full within thirty days of the 12 Consent Agreement and Final Order – Docket No. CAA-2026-8710Effective Date, interest will begin to accrue and will continue to accrue until any unpaid
portion of the Assessed Penalty as well as any accrued 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 three percentage points. b. Handling Charges. The United States’ enforcement expenses including, but not limited to, attorneys’ fees and costs of collection proceedings. c. Late Payment Penalty. A ten percent quarterly non-payment penalty. -
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, interest, or other charges and penalties
per this Consent Agreement and attached Final Order, 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, per 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, per 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, 40 C.F.R. § 13.17; and d. request that the Attorney General bring a civil action in the appropriate district court to recover the full remaining balance of the Assessed Penalty, in addition to interest and 13 Consent Agreement and Final Order – Docket No. CAA-2026-8710the amounts described above, per 42 U.S.C. § 7524(c)(6). In any such action, the
validity, amount, and appropriateness of the Assessed Penalty shall not be subject to review. -
Allocation of Payments. Pursuant to 31 C.F.R. § 901.9(f) and 40 C.F.R. § 13.11(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.
-
Tax Treatment of Penalties. Penalties, interest, and other charges paid pursuant to this Consent
Agreement and attached Final Order shall not be deductible for purposes of federal taxes.
-
By signing this Agreement, the undersigned representative of Complainant and the
undersigned representative of Respondent each certify that he or she is fully authorized to
execute and enter into the terms and conditions of this Agreement andhas the legal capacity to
bind the party he or she represents to this Agreement.
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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. Complainant agrees to
acceptance of the Respondent’s digital or an original signature on this Agreement.
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Except as qualified by Paragraph 51(b), each party shall bear its own attorney’s fees, costs,
and disbursements incurred in this proceeding.
G. EFFECT OF CONSENT AGREEMENT AND ATTACHED FINAL ORDER
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In accordance with 40 C.F.R. § 22.18(c), Respondent’s full compliance with this Consent
Agreement shall only resolve Respondent’s liability for federal civil penalties for the
violations alleged in Section E of this Consent Agreement.
14 Consent Agreement and Final Order – Docket No. CAA-2026-871059. This Consent Agreement and attached Final Order apply to and are binding upon the
Complainant and the Respondent. Successors and assigns of Respondent are also bound if
they are owned, in whole or in part, directly or indirectly, or otherwise controlled by
Respondent. Nothing in the previous sentence adversely affects any right of the EPA under
applicable law to assert successor or assignee liability against Respondent’s successor or
assignee.
-
Pursuant to 26 U.S.C. § 6050X and 26 C.F.R. § 1.6050X-1, the EPA is required to send to the
Internal Revenue Service (“IRS”), annually, a completed IRS Form 1098-F (“Fines, Penalties,
and Other Amounts”) with respect to any court order or settlement agreement (including
administrative settlements) that require a payor to pay an aggregate amount that the EPA
reasonably believes will be equal to, or in excess of, $50,000 for the payor’s violation of any law
or the investigation or inquiry into the payor’s potential violation of any law, including amounts
paid for “restitution or remediation of property” or to come “into compliance with a law.” The
EPA is further required to furnish a written statement, which provides the same information
provided to the IRS, to each payor (i.e., a copy of IRS Form 1098-F). Failure to comply with
providing IRS Form W-9 or Tax Identification Number (“TIN”), as described below, may
subject Respondent to a penalty, per 26 U.S.C. § 6723, 26 U.S.C. § 6724(d)(3), and 26 C.F.R. §
301.6723-1. In order to provide the EPA with sufficient information to enable it to fulfill these
obligations, Respondent shall complete the following actions as applicable:
a. Respondent shall complete an IRS Form W-9 (“Request for Taxpayer Identification Number and Certification”), which is available at https://www.irs.gov/pub/irspdf/fw9.pdf; 15 Consent Agreement and Final Order – Docket No. CAA-2026-8710b. Respondent shall therein certify that its completed IRS Form W-9 includes
Respondent’s correct TIN or that Respondent has applied and is waiting for issuance of a TIN; c. Respondent shall email its completed Form W-9 to the EPA’s Cincinnati Finance Center at [email protected], on or before the date that Respondent’s penalty payment is due, pursuant to Paragraph 49 of this Agreement, or within seven days should the order become effective between December 15 and December 31 of the calendar year. The EPA recommends encrypting IRS Form W-9 email correspondence; and d. In the event that Respondent has certified in its completed IRS Form W-9 that it does not yet have a TIN but has applied for a TIN, Respondent shall provide the EPA’s Cincinnati Finance Division with Respondent’s TIN, via email, within five (5) days of Respondent’s receipt of a TIN issued by the IRS. -
This Consent 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.
-
This Consent Agreement may be signed in any number of counterparts, each of which will be
deemed an original and, when taken together, constitute one agreement; the counterparts are
binding on each of the Parties individually as fully and completely as if the Parties had signed
one single instrument, so that the rights and liabilities of the Parties will be unaffected by the
failure of any of the undersigned to execute any or all of the counterparts; any signature page
and any copy of a signed signature page may be detached from any counterpart and attached to
any other counterpart of this Consent Agreement.
16 Consent Agreement and Final Order – Docket No. CAA-2026-871063. 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
construed to be a ruling on, or determination of, any issuerelated to any federal, state, or local
permit.
-
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 animminent and
substantial endangerment to the public health, welfare, or the environment.
-
The EPA reserves the right to revoke this Consent Agreement and settlement penalty if and to
the extent that the EPA finds, after signing this Consent Agreement, that any information
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 in writing.
H. EFFECTIVE DATE -
The Effective Date of this Consent Agreement shall be the date that the Final Order is filed
and becomes effective in accordance with 40 C.F.R. § 22.31(b). Respondent and Complainant
agree to the Environmental Appeals Board’s issuance of the attached Final Order. The EPA
will transmit a copy of the Final Order and ratified Consent Agreement to the Respondent.
17 Consent Agreement and Final Order – Docket No. CAA-2026-8710The foregoing Consent Agreement In the Matter of ConforMatic Inc., Docket No. CAA-2026-8710, is Hereby Stipulated, Agreed, and Approved for Entry.
COMPLAINANT:
Digitally signed by
SPARSH SPARSH KHANDESHI
KHANDESHI Date: 2026.04.23
18:25:12 -04'00'
____________________________________________
Sparsh S. Khandeshi
Acting Director, Air Enforcement Division
Office of Enforcement and Compliance Assurance
U.S. Environmental Protection Agency
19
Consent Agreement and Final Order – Docket No. CAA-2026-8710
CERTIFICATE OF SERVICE
I certify that copies of the foregoing “Consent Agreement” and “Final Order,” in the
matter of ConforMatic Inc., Docket No. CAA-2026-8710, were sent to the following persons on April 30, 2026, in the manner indicated:
By E-mail:
Ethan Thompson
Attorney-Advisor
Air Enforcement Division
U.S. Environmental Protection Agency
[email protected]
Camelia Mazard, Esq.
Counsel for Respondent
Doyle, Barlow & Mazard PLLC
[email protected]
Digitally signed by
TOMMIE MADISON
Date: 2026.04.30
12:17:58 -04'00'
Tommie Madison
Clerk of the Board
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