Document OJX2DZboK68nE9gaoN8pxb0GQ

TRANSMITTED VIA EMAIL RETURN RECEIPT REQUESTED Ken Gaglione Vice President, Operations Hudson Technologies Company 300 Tice Boulevard, Suite 290 Woodcliff Lake, NJ 07677 kgaglione@hudsontech.com RE: Hudson Technologies Company - Notice of Violation (HFC Imports and GHG Reporting) Dear Mr. Gaglione: The U.S. Environmental Protection Agency ("EPA") is issuing the enclosed Notice of Violation (NOV) to Hudson Technologies Company (Company or you). The EPA alleges that you have violated the American Innovation and Manufacturing ("AIM") Act, 42 U.S.C. 7675, the regulations promulgated thereunder at 40 C.F.R. Part 84, and Section 114 of the Clean Air Act (CAA), 42 U.S.C. 7414, and the regulations promulgated thereunder at 40C.F.R. Part 98, Subparts A and OO. The EPA is issuing this NOV based on information described in detail below that represents specific violations of applicable requirements relating to the importation of hydrofluorocarbons ("HFCs"). The EPA is issuing this NOV under Section 113(a) of the Clean Air Act (the Act or CAA), 42 U.S.C. 7413(a)(3)1 for violations of 40 C.F.R. Part 84 and 40C.F.R. Part 98, Subparts A and OO. See 42 U.S.C. 7675(k)(1)(C) and 42 U.S.C. 7414. Section 113(a)(3) of the Act, 42 U.S.C. 7413(a)(3), gives the EPA several enforcement options to resolve these violations, including issuing an administrative compliance order, issuing an administrative penalty order, bringing a judicial civil action, or bringing a judicial criminal action. Without making a determination that your business or organization is a small business, the EPA is providing you with this Small Business Resources Information Sheet, which provides important information that may assist small businesses in identifying and complying with environmental requirements: https://www.epa.gov/compliance/small-business-resources-information-sheet. 1 The AIM Act provides that Sections 113 and 114 of the CAA, 42 U.S.C. 7413 and 42 U.S.C. 7414, apply to the AIM Act and any regulation promulgated thereunder "as though this section were expressly included in title VI of that Act." See 42 U.S.C. 7675(k)(1)(C). Hudson Technologies Company may request a conference with the EPA to present information on the identified violations in this NOV, efforts you have taken to comply, and the steps you will take to prevent future violations within ten (10) calendar days following receipt of this NOV. You may have counsel represent you at this conference. Please direct such request to Hallie Lipsey, AttorneyAdvisor, at Lipsey.Hallie@epa.gov or 202-564-2448. Sincerely, MARY GREENE Digitally signed by MARY GREENE Date: 2024.11.05 19:22:40 -05'00' Mary E. Greene, Director Air Enforcement Division United States Environmental Protection Agency Enclosure cc (by email): Amelie Isin, HFC Program Lead, EPA Nathan Dancher, Environmental Engineer, EPA Hallie Lipsey, Attorney Adviser, EPA Ken Gaglione, Vice-President, Hudson Technologies Company 2 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, DC IN THE MATTER OF: Hudson Technologies Company 300 Tice Boulevard, Suite 290 Woodcliff Lake, NJ 07677 Proceedings Pursuant to Section 113(a)(3) of the Clean Air Act, 42 U.S.C. 7413(a)(3) ) ) ) ) ) ) NOTICE OF VIOLATION ) ) ) NOTICE OF VIOLATION Statutory and Regulatory Authority The AIM Act 1. Hudson Technologies Company is a refrigerant services company located at 300 Tice Boulevard, Suite 290, Woodcliff Lake, New Jersey 07677. 2. The American Innovation and Manufacturing (AIM) Act, 42 U.S.C. 7675, provides the EPA with authority to regulate hydrofluorocarbons (HFCs), which are greenhouse gases, and requires the Environmental Protection Agency ("EPA") to phase down HFC production and consumption. 3. The regulations at 40 C.F.R. Part 84, Subpart A,2 implement the AIM Act requirement to phase down HFC production and consumption. 4. 40 C.F.R. 84.1(b) states that Subpart A applies to "any person that produces, transforms, destroys, imports, exports, sells or distributes, offers for sale or distribution, recycles for fire suppression, or reclaims a regulated substance." 5. 40 C.F.R. 84.3 defines "regulated substance" as "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). A current list of regulated substances can be found in appendix A to this part." 2 The regulations at 40 C.F.R. Part 84, Subpart A were amended on September 18, 2023. If a version of the regulations was different in 2022 from the current version of the regulations, it is cited as "2022" in this Notice of Violation. 6. 40 C.F.R. 84.3 defines "bulk" to mean "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." 7. 40 C.F.R. 84.3 defines "consumption allowances" as "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." A person's consumption allowances are the total of the allowances obtained under 40 C.F.R. 84.11 or 84.15 and may be modified under 40 C.F.R. 84.17 (availability of additional consumption allowances), 84.19 (transfer of allowances), and 84.35 (administrative consequences). 8. 40 C.F.R. 84.3 defines "application-specific allowance" 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 84.5(c)." 9. 40 C.F.R. 84.3 defines "heel" as the "amount of a regulated substance that remains in a container after the container is discharged or offloaded (that is no more than 10 percent of the volume of the container)." 10. Under 40 C.F.R. 84.3, "import" means "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." 11. 40 C.F.R. 84.3 defines "importer" 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 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." 12. 40 C.F.R. 84.3 defines "person" as "any individual or legal entity, including an individual, corporation, partnership, 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." 13. 40 C.F.R. 84.3 defines "exchange value" 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 this part." 2 14. 40 C.F.R. 84.3 defines "exchange value equivalent (EVe)" 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." 15. Appendix A to 40 C.F.R. Part 84 lists the substances regulated by the AIM Act by HFC, chemical formula, and exchange value. 16. Appendix A to 40 C.F.R. Part 84 includes the compounds HFC-32, HFC-125, HFC-134a, HFC-143a, and HFC-227. 17. Appendix A to 40 C.F.R. Part 84 lists the exchange values as 675 for HFC-32; 3,500 for HFC-125; 1,430 for HFC-134a; 4,470 for HFC-143a; and 3,220 for HFC-227ea. 18. 40 C.F.R. 84.5(b)(1)(i) states in relevant part, that "[n]o person may import bulk regulated substances" except 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.3 19. 40 C.F.R. 84.5(b)(3) states that "[e]ach 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 they can demonstrate that the importer of record possessed and expended allowances in accordance with the requirement outlined in paragraph 3 The language in 40 C.F.R. 84.5(b)(1)(i) (2023) was modified slightly from the previous language in 40 C.F.R. 84.5(b)(1)(i) (2022), but the requirement that every importer must expend consumption or application-specific allowances equal to the quantity equal to the exchange-value weighted equivalent of the regulated substances imported remained unchanged. 40 C.F.R. 84.5(b)(1)(i) (2023) states 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 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 exchangevalue weighted equivalent of the regulated substances imported, whether present as a single component or a multicomponent blend. The required amount of allowances must be calculated to the tenth, but a minimum expenditure of 0.1 allowances is required for any import of regulated substances." Prior to September 18, 2023, 40 C.F.R. 84.5(b)(2) (2022) stated that "[n]o person may import bulk regulated substances, except 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, with the required amount of allowances calculated to the tenth, but a minimum expenditure of 0.1 allowances is required for any import of regulated substances." 3 (b)(1)(i) or (v) of this section or another party who meets the definition of an importer met one of the exceptions set forth in (b)(1)(ii) through (iv) of this section."4 20. From December 1, 2022 to September 17, 2023, 40 C.F.R. 84.31(c)(7) (2022)5 provided that the importer of record was required to submit an advance notification report for each shipment of regulated substances imported no later than 14 days prior to importation. 21. Beginning September 18, 2023, 40 C.F.R. 84.31(c)(7) provides that the importer of record is required to submit an advance notification report for each shipment of regulated substances imported no later than 10 days if arriving by marine vessel or 5 days for non-marine vessel prior to the date of importation. 22. 40 C.F.R. 84.31(c)(1) provides that within 45 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 requirements listed in 40 C.F.R. 84.31(c)(1)(i) - (ix). 23. Pursuant to the AIM Act, any violation of the regulations under 40 C.F.R. Part 84 is subject to the enforcement provisions of Section 113 of the CAA, 42 U.S.C. 7413. See 42 U.S.C. 7675(k)(1)(C). The CAA 24. Under CAA Section 114(a)(1), 42 U.S.C. 7414(a)(1), the EPA may require emission sources, persons subject to the CAA, manufacturers of emission control or process equipment, or persons whom the EPA believes may have necessary information, to monitor and report emissions and to provide such other information as the EPA requests for the purposes of carrying out any provision of the CAA (except for a provision of Title II with respect to motor vehicles). 25. Pursuant to this legal authority, the EPA established the mandatory greenhouse gas reporting requirements in 2010 at 40 C.F.R. Part 98. 26. 40 C.F.R. 98.1(a) establishes greenhouse gas reporting requirements for owners and operators of certain facilities that directly emit greenhouse gases as well as for certain suppliers. For suppliers, the greenhouse gases reported are the quantity that would be emitted from combustion or use of the products supplied. 4 Prior to September 18, 2023, 40 C.F.R. 84.5(b)(2) (2022) stated that "[e]ach 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 they can demonstrate that another party who meets the definition of an importer met one of the exceptions set forth in paragraph (b)(1)." 5 40 C.F.R. 84.31(c)(7) (and other sections) has since been modified, effective September 18, 2023 (See 88 Fed. Reg. 46,836, 46,897 (July 20, 2023)); see also paragraph 18, supra. 4 27. 40 C.F.R. 98.1(b) provides that owners, operators, and suppliers subject to 40 C.F.R. Part 98 must follow the requirements of Subpart A and all applicable subparts, and if a conflict exists between a provision in Subpart A and any other applicable subpart, the requirements of the applicable subpart shall take precedence. 28. 40 C.F.R. 98.2(a) provides that the greenhouse gas reporting requirements and related monitoring, recordkeeping, and reporting requirements of Subpart A apply to the owners and operators of any supplier that meets the requirements of paragraph (a)(4) of this section. 29. 40 C.F.R. 98.2(a)(4) provides that a supplier listed in Table A-5 of 40 C.F.R. Part 98, Subpart A, must submit an annual report that covers all applicable products for which calculation methodologies are provided in the applicable subpart and Subpart A. 30. 40 C.F.R. Part 98, Subpart OO, applies to suppliers of industrial greenhouse gases. Table A-5 of 40 C.F.R. Part 98, Subpart A, lists supplier categories for industrial greenhouse gas suppliers subject to 40 C.F.R. Part 98, Subpart OO, including producers of industrial greenhouse gases, and importers of industrial greenhouse gases with annual bulk imports of N2O, fluorinated greenhouse gas, and CO2 that in combination have greenhouse gas quantities equivalent to 25,000 metric tons of carbon dioxide equivalent (CO2e) or more. Table A-5 of 40 C.F.R. Part 98, Subpart A, also states that suppliers are defined in each applicable subpart. 31. 40 C.F.R. 98.418 provides that all the terms used in 40 C.F.R. Part 98, Subpart OO, have the same meaning given in the CAA and 40 C.F.R. Part 98, Subpart A, except the terms "isolated intermediate" and "low-concentration constituent," which are defined in 40 C.F.R 98.418. 40 C.F.R. 98.418 further provides that if a conflict exists between a definition provided in Subpart OO and a definition provided in Subpart A, the definition in Subpart OO shall take precedence for the reporting requirements in Subpart OO. 32. 40 C.F.R. 98.6 defines "exporter" as any person, company or organization of record that transfers for sale or for other benefit, domestic products from the United States to another country or to an affiliate in another country, excluding any such transfers on behalf of the United States military or military purposes including foreign military sales under the Arms Export Control Act. An exporter is not the entity merely transporting the domestic products, rather an exporter is the entity deriving the principal benefit from the transaction. 33. 40 C.F.R. 98.6 defines "industrial greenhouse gases" as nitrous oxide or any fluorinated greenhouse gas. 34. 40 C.F.R. 98.6 defines "importer" as any person, company, or organization of record that for any reason brings a product into the United States from a foreign country, excluding introduction into United States jurisdiction exclusively for United States military purposes. An importer is the person, company, or organization primarily liable for the payment of any duties on the merchandise or an authorized agent acting on their behalf. The term includes, as 5 appropriate: (1) the consignee, (2) the importer of record, (3) the actual owner, and (4) the transferee, if the right to draw merchandise in a bonded warehouse has been transferred. 35. 40 C.F.R. 98.6 defines "operator" as any person who operates or supervises a facility or supplier. 36. 40 C.F.R. 98.6 defines "owner" as any person who has legal or equitable title to, has a leasehold interest in, or control of a facility or supplier, except a person whose legal or equitable title to or leasehold interest in the facility or supplier arises solely because the person is a limited partner in a partnership that has legal or equitable title to, has a leasehold interest in, or control of the facility or supplier shall not be considered an "owner" of the facility or supplier. 37. 40 C.F.R. 98.6 defines "supplier" as a producer, importer, or exporter in any supply category included in Table A-5 to 40 C.F.R. Part 98, Subpart A, as defined by the corresponding subpart of 40 C.F.R. Part 98. 38. 40 C.F.R. 98.410 defines source categories for suppliers of industrial greenhouse gases. 39. 40 C.F.R. 98.410(a) provides that "the industrial gas supplier source category consists of any facility that produces fluorinated greenhouse gases or nitrous oxide; any bulk importer of fluorinated greenhouse gases or nitrous oxide; and any bulk exporter of fluorinated greenhouse gases or nitrous oxide." 40. 40 C.F.R. 98.411 specifies the applicable reporting threshold for 40 C.F.R. Part 98, Subpart OO, and requires any supplier of industrial greenhouse gases who meets the requirements of 40 C.F.R. 98.410 and 40 C.F.R. 98.2(a)(4) to report greenhouse gas emissions pursuant to 40 C.F.R. Part 98, Subpart OO (40 C.F.R. 98.410 - 98.418). 41. 40 C.F.R. 98.2(f) provides the methodology to calculate industrial greenhouse gas quantities for comparison to the 25,000 metric ton CO2e per year threshold under 40 C.F.R. 98.2(a)(4) for importers and exporters of industrial greenhouse gases, and states that the imported quantities and the exported quantities must be compared separately to the 25,000 metric ton CO2e per year threshold. 42. 40 C.F.R. 98.2(i) provides that once a supplier is subject to the requirements of 40 C.F.R. Part 98, the supplier must for each year thereafter comply with all requirements of 40 C.F.R. Part 98, including the requirement to submit annual greenhouse gas reports, even if the supplier does not meet the applicability requirements in 40 C.F.R. 98.2(a) in a future year. 43. 40 C.F.R. 98.3(b) requires suppliers subject to 40 C.F.R. Part 98 to submit annual reports to the EPA no later than March 31 of each calendar year for greenhouse gas emissions in the previous calendar year, with the exception of the report for calendar year 2010, which was due no later than September 30, 2011. 6 44. 40 C.F.R. 98.3(c) specifies the content of each annual report, other than as provided in 40 C.F.R. 98.3(d) for reporting year 2010, and includes any other data specified in the "Data reporting requirements" section of each applicable Subpart of 40 C.F.R. Part 98. 45. 40 C.F.R. 98.416 provides a list of information, in addition to the information required by 40 C.F.R. 98.3(c)(1) - (3) and (5) - (13), that must be included in each annual report. 46. 40 C.F.R. 98.412 requires reporting of greenhouse gas emissions that would result from the release of the nitrous oxide and each fluorinated greenhouse gas that is produced, imported, exported, transformed, or destroyed during the calendar year. 47. Except for certain special exceptions for reporting year 2010, 40 C.F.R. 98.3(e) requires use of the calculation methodologies specified in the relevant subparts, in preparing the annual report. "For each source category, you must use the same calculation methodology throughout a reporting period unless you provide a written explanation of why a change in methodology was required." 40 C.F.R. 98.3(e). 48. 40 C.F.R. 98.413 prescribes the methodology to calculate the industrial greenhouse gas emissions set forth in 40 C.F.R. 98.412. 49. 40 C.F.R. 98.6 defines global warming potential (GWP) and specifies that the GWP of each greenhouse gas are provided in Table A-1 of 40 C.F.R. Part 98. 50. Table A-1 of 40 C.F.R. Part 98 lists a GWP (based on a 100-year time horizon) of 675 for HFC-32; 3,500 for HFC-125; 1,430 for HFC-134a; 4,470 for HFC-143a; and 3,220 for HFC-227ea. 51. 40 C.F.R. 98.5 requires each annual report to be submitted electronically through the "Electronic Greenhouse Gas Reporting Tool" ("e-GGRT"). Each report must be submitted by a designated representative. See 40 C.F.R. 98.4. 52. Any violation of 40 C.F.R. Part 98 is a violation of the CAA, including Section 114, 42 U.S.C. 7414. A violation includes but is not limited to failure to report greenhouse gas emissions, failure to collect data needed to calculate greenhouse gas emissions, failure to continuously monitor and test, failure to retain records needed to verify the amount of greenhouse gas emissions, and failure to calculate greenhouse gas emissions following the methodologies specified in this part. Each day of violation constitutes a separate violation. 40 C.F.R. 98.8. Facts 53. Hudson Technologies Company is a refrigerant services company located at 300 Tice Boulevard, Suite 290, Woodcliff Lake, New Jersey 07677. 54. R-404A is a refrigerant blend that contains the following bulk regulated substances: HFC-125, 7 HFC-134a, and HFC-143a. 55. R-407A is a refrigerant blend that contains the following bulk regulated substances: HFC-32, HFC-125, and HFC-134a. 56. R-407C is a refrigerant blend that contains the following bulk regulated substances: HFC-32, HFC-125, and HFC-134a. 57. R-410A is a refrigerant blend that contains the following bulk regulated substances: HFC-32 and HFC-125. 58. R-422 is a refrigerant blend that contains the following bulk regulated substances: HFC-125 and HFC-134a. 59. R-507 is a refrigerant blend that contains the following bulk regulated substances: HFC-125 and HFC-143a. 60. In 2022, the EPA issued Hudson Technologies consumption allowances equivalent to 2,977,582.0 total metric tons of EVe (MTEVe) for the importation of HFCs and HFC Blends. See Phasedown of Hydrofluorocarbons: Notice of 2022 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020, 86 Fed. Reg. 55,841 (Oct. 7, 2021). At the end of 2022, Hudson Technologies had unused consumption allowances equivalent to 6,065.5 MTEVe. See Envtl. Prot. Agency, HFC Data Hub, https://www.epa.gov/climate-hfcs-reduction/hfc-data-hub#year-end (last visited Aug. 21, 2024). 61. In 2023, the EPA issued Hudson Technologies consumption allowances equivalent to 2,988,057.5 total MTEVe for the importation of HFCs and HFC Blends. See Phasedown of Hydrofluorocarbons: Notice of 2023 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020, 87 Fed. Reg. 61,314 (Oct. 11, 2022). At the end of 2023, Hudson Technologies had unused consumption allowances equivalent to 3,195.8 MTEVe. See Envtl. Prot. Agency, HFC Data Hub, https://www.epa.gov/climate-hfcs-reduction/hfc-data-hub#year-end (last visited Oct. 4, 2024). 62. In 2024, the EPA issued Hudson Technologies consumption allowances equivalent to 1,928,081.5 total MTEVe for the importation of HFCs and HFC Blends. See Phasedown of Hydrofluorocarbons: Notice of 2024 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020, and Notice of Final Administrative Consequences, 88 Fed. Reg. 72,060 (Oct. 19, 2023). 63. From January 1, 2022 through March 30, 2024, Hudson Technologies failed to submit advance notice reports prior to importation by the day specified by 40 C.F.R. 84.31(c)(7) and 40 C.F.R. 84.31(c)(7) (2022) for approximately 156 separate import shipments containing HFCs and HFC 8 blends ("156 Shipments of Subject HFCs"), including shipments containing HFC-125, HFC-134A, HFC-227, R-404A, R-407A, R-4047C, R-410A, R-422, and R-507. See Exhibit A for relevant shipment numbers. 64. Hudson Technologies failed to submit a report to the EPA with information relating to approximately 38 separate shipments of HFCs or HFC Blends that Hudson Technologies imported during the first quarter of 2022, within 45 days after the end of the first quarter of 2022 ("2022 Q1 Unreported HFCs"). See Exhibit B. 65. Hudson Technologies failed to submit a report to the EPA with information relating to approximately 33 separate shipments of HFCs or HFC Blends that Hudson Technologies imported during the second quarter of 2022, within 45 days after the end of the second quarter of 2022 ("2022 Q2 Unreported HFCs"). See Exhibit C. 66. Hudson Technologies failed to submit a report to the EPA with information relating to approximately 7 separate shipments of HFCs or HFC Blends that Hudson Technologies imported during the third quarter of 2022, within 45 days after the end of the third quarter of 2022 ("2022 Q3 Unreported HFCs"). See Exhibit D. 67. Hudson Technologies failed to submit a report to the EPA with information relating to approximately 4 separate shipments of HFCs or HFC Blends that Hudson Technologies imported during the fourth quarter of 2022, within 45 days after the end of the fourth quarter of 2022 ("2022 Q4 Unreported HFCs"). See Exhibit E. 68. The 2022 Q1 Unreported HFCs, 2022 Q2 Unreported HFCs, 2022 Q3 Unreported HFCs, and 2022 Q4 Unreported HFCs are industrial greenhouse gases under 40 C.F.R. 98.6. 69. Hudson Technologies did not submit an annual report of its greenhouse gas import quantities that included its 2022 Q1 Unreported HFCs, 2022 Q2 Unreported HFCs, 2022 Q3 Unreported HFCs, and 2022 Q4 Unreported HFCs to the EPA by March 31, 2023 for greenhouse gas emissions in calendar year 2022. Alleged Violations Violation 1 - Failure to Submit an Advance Notification Report in Violation of the AIM Act 70. Based on the facts in the section above, the EPA alleges that the approximately 156 Shipments of Subject HFCs are bulk regulated substances. 71. Based on the facts in the section above, Hudson Technologies violated 40 C.F.R. 84.31(c)(7) and 40 C.F.R. 84.31(c)(7) (2022) by failing to submit timely advance notification reports prior 9 to importation for approximately 156 Shipments of Subject HFCs imported between January 1, 2022 and March 31, 2024. Violation 2 - Failure to Submit Correct Quarterly Reports in 2022 in Violation of the AIM Act 72. Based on the facts in the section above, Hudson Technologies violated 40 C.F.R. 84.31(c)(1) by failing to submit a report to the EPA that describes the bulk regulated substances imported during the first quarter of 2022 within 45 days after the end of the first quarter. 73. Based on the facts in the section above, Hudson Technologies violated 40 C.F.R. 84.31(c)(1) by failing to submit a report to the EPA that describes the bulk regulated substances imported during the second quarter of 2022 within 45 days after the end of the second quarter. 74. Based on the facts in the section above, Hudson Technologies violated 40 C.F.R. 84.31(c)(1) by failing to submit a report to the EPA that describes the bulk regulated substances imported during the third quarter of 2022 within 45 days after the end of the third quarter. 75. Based on the facts in the section above, Hudson Technologies violated 40 C.F.R. 84.31(c)(1) by failing to submit a report to the EPA that describes the bulk regulated substances imported during the fourth quarter of 2022 within 45 days after the end of the fourth quarter. Violation 3 - Failure to Submit Accurate Greenhouse Gas Import Quantities in Violation of the CAA 76. Hudson Technologies is a supplier subject to the mandatory greenhouse gas reporting requirements. 77. Based on the facts in the section above, Hudson Technology's greenhouse gas quantities exceeded the mandatory greenhouse gas reporting threshold of 25,000 metric tons CO2e per year or more in 2022. 78. Hudson Technologies did not submit an annual report of its greenhouse gas import quantities that included its 2022 Q1 Unreported HFCs, 2022 Q2 Unreported HFCs, 2022 Q3 Unreported HFCs, and 2022 Q4 Unreported HFCs to the EPA for at least calendar year 2022, in violation of 40 C.F.R. Part 98, Subparts A and OO. Enforcement The EPA's investigation into this matter is continuing. The above information representsspecific violations that the EPA believes, at this point, are sufficiently supported by evidence to warrant the allegations in this NOV. The EPA may find additional violations as the investigation continues. Section 113(a)(3) of the Act, 42 U.S.C 7413(a)(3), provides the Administrator with several enforcement options to resolve these violations, including issuing an administrative compliance 10 order, issuing an administrative penalty order, bringing a judicial civil action, and bringing a judicial criminal action. Effective Date This Notice shall become effective immediately upon issuance. MARY GREENE Digitally signed by MARY GREENE Date: 2024.11.05 19:23:38 -05'00' ____________________ Mary E. Greene, Director Air Enforcement Division United States Environmental Protection Agency 11 EXHIBIT A 12 156 Shipments of Subject HFCs Entry Date Entry Filing Date Entry Number HFC/HFC Days Notice Blend Late January 30, 2024 January 23, 2024 07102564106 HFC-125 3 February 3, 2024 January 30, 2024 07102562290 HFC-125 6 January 21, 2024 January 18, 2024 07102558579 HFC-125 7 September 30, 2023 September 25, 2023 07102540254 HFC-227 5 Change in Reporting Requirements. See 40 C.F.R. 84.31(c)(7) and 40 C.F.R. 84.31(c)(7) (2022). June 21, 2023 June 16, 2023 07102520777 HFC-125 5 June 7, 2023 June 5, 2023 07102519514 HFC-227 12 June 7, 2023 June 5, 2023 07102517179 HFC-125 12 May 28, 2023 May 26, 2023 07102512634 HFC-125 12 May 22, 2023 May 17, 2023 07102510661 HFC-125 9 May 20, 2023 May 17, 2023 07102510638 HFC-125 11 May 20, 2023 May 17, 2023 07102510612 HFC-125 11 May 18, 2023 May 16, 2023 07102517591 HFC-227 12 May 9, 2023 May 17, 2023 07102513152 HFC-125 22 May 9, 2023 May 17, 2023 07102512261 HFC-125 22 April 30, 2023 April 27, 2023 07102506339 HFC-125 11 April 28, 2023 April 27, 2023 07102509028 HFC-125 13 April 17, 2023 April 14, 2023 07102507576 HFC-125 11 April 14, 2023 April 14, 2023 07102507584 HFC-125 14 April 11, 2023 April 7, 2023 07102506909 HFC-125 10 April 10, 2023 April 7, 2023 07102506883 HFC-125 11 March 29, 2023 March 27, 2023 07102504466 HFC-125 12 March 7, 2023 March 6, 2023 07102501322 HFC-125 13 March 7, 2023 March 6, 2023 07102501314 HFC-125 13 March 7, 2023 March 6, 2023 07102501306 HFC-125 13 March 7, 2023 March 6, 2023 07102501298 HFC-125 13 December 12, 2022 December 9, 2022 07102484099 HFC-125 11 December 12, 2022 December 9, 2022 07102484081 HFC-125 11 December 5, 2022 December 2, 2022 07102486060 HFC-125 11 November 28, 2022 November 25, 2022 07102484438 HFC-125 11 November 22, 2022 November 22, 2022 07102482226 R-422 14 November 22, 2022 November 22, 2022 07102482226 HFC-125 14 November 22, 2022 November 22, 2022 07102482218 HFC-125 14 November 22, 2022 November 22, 2022 07102482200 HFC-125 14 November 14, 2022 November 8, 2022 07102488025 HFC-125 8 November 10, 2022 November 7, 2022 07102487985 HFC-125 11 November 10, 2022 November 18, 2022 07102485559 R-410A 22 November 10, 2022 November 18, 2022 07102485542 R-410A 22 November 10, 2022 November 18, 2022 07102485492 R-404A 22 13 Entry Date Entry Filing Date Entry Number November 8, 2022 November 7, 2022 November 7, 2022 November 1, 2022 October 30, 2022 October 20, 2022 October 16, 2022 October 7, 2022 October 4, 2022 October 3, 2022 October 3, 2022 October 1, 2022 October 1, 2022 September 29, 2022 September 28, 2022 September 27, 2022 September 26, 2022 September 26, 2022 September 21, 2022 September 21, 2022 September 15, 2022 September 14, 2022 September 14, 2022 September 11, 2022 September 4, 2022 August 28, 2022 August 28, 2022 August 13, 2022 August 13, 2022 August 13, 2022 August 13, 2022 August 13, 2022 August 13, 2022 August 3, 2022 July 13, 2022 July 13, 2022 July 13, 2022 July 4, 2022 July 3, 2022 July 3, 2022 June 24, 2022 November 3, 2022 November 7, 2022 November 8, 2022 October 31, 2022 October 28, 2022 October 18, 2022 October 19, 2022 October 6, 2022 October 3, 2022 October 17, 2022 October 17, 2022 September 30, 2022 September 30, 2022 September 29, 2022 September 28, 2022 October 20, 2022 September 29, 2022 September 29, 2022 September 23, 2022 September 23, 2022 September 13, 2022 September 13, 2022 September 13, 2022 September 26, 2022 September 14, 2022 August 25, 2022 August 25, 2022 August 15, 2022 August 15, 2022 August 15, 2022 August 15, 2022 August 15, 2022 August 15, 2022 August 5, 2022 August 2, 2022 August 2, 2022 August 2, 2022 July 14, 2022 July 21, 2022 July 20, 2022 July 1, 2022 07102487621 07102488017 07102485815 07102487001 07102485054 07102484214 07102475048 07102483356 07102482788 07102477721 07102477713 07102469223 07102469207 07102482432 07102479016 07102476582 07102476012 07102475998 07102473399 07102473373 07102464851 07102464844 07102464836 07102475378 07102470361 07102471971 07102471682 07102469439 07102469421 07102469413 07102469397 07102469389 07102469371 07102474082 07102466013 07102466005 07102465999 07102466021 07102465494 07102465478 07102462459 14 HFC/HFC Blend HFC-125 HFC-125 HFC-125 HFC-125 HFC-227 HFC-227 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-227 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-134a HFC-125 R-410A HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-125 HFC-227 R-410A R-410A R-410A R-410A R-410A HFC-125 HFC-134a Days Notice Late 9 14 15 13 12 12 17 13 13 28 28 13 13 14 14 37 17 17 16 16 12 13 13 29 24 11 11 16 16 16 16 16 16 16 34 34 34 24 32 31 21 Entry Date Entry Filing Date Entry Number June 24, 2022 June 15, 2022 June 8, 2022 June 5, 2022 June 1, 2022 May 31, 2022 May 31, 2022 May 25, 2022 May 25, 2022 May 20, 2022 May 19, 2022 May 19, 2022 May 19, 2022 May 19, 2022 May 15, 2022 May 15, 2022 May 15, 2022 May 14, 2022 May 14, 2022 May 14, 2022 May 14, 2022 May 12, 2022 May 12, 2022 May 10, 2022 May 9, 2022 May 8, 2022 May 8, 2022 May 5, 2022 May 5, 2022 May 1, 2022 April 27, 2022 April 27, 2022 April 23, 2022 April 15, 2022 April 15, 2022 April 13, 2022 April 9, 2022 April 9, 2022 March 31, 2022 March 31, 2022 March 30, 2022 June 29, 2022 June 15, 2022 June 29, 2022 June 8, 2022 June 15, 2022 June 3, 2022 June 3, 2022 June 9, 2022 June 9, 2022 May 18, 2022 May 19, 2022 May 19, 2022 May 19, 2022 May 19, 2022 May 12, 2022 May 11, 2022 May 9, 2022 May 26, 2022 May 26, 2022 May 26, 2022 May 26, 2022 May 25, 2022 May 27, 2022 May 13, 2022 May 13, 2022 May 18, 2022 May 20, 2022 May 24, 2022 May 24, 2022 April 29, 2022 May 13, 2022 May 13, 2022 May 4, 2022 April 20, 2022 April 20, 2022 April 12, 2022 April 25, 2022 April 25, 2022 April 25, 2022 April 25, 2022 April 29, 2022 07102462129 07102461063 07102459711 07102456626 07102459703 07102460271 07102457087 07102457905 07102457582 07102456287 07102456063 07102456048 07102455784 07102455750 07102457186 07102457152 07102456329 07102456618 07102456311 07102456295 07102455792 07102457194 07102456071 07102448581 07102455776 07102455743 07102455388 07102452609 07102452302 07102450108 07102451213 07102451197 07102449811 07102448987 07102448565 07102447054 07102449944 07102449944 07102446072 07102445546 07102446080 15 HFC/HFC Blend HFC-134a HFC-134a R-410A HFC-134a R-410A HFC-134a HFC-134a R-410A R-410A HFC-134a R-404A R-404A R-404A R-404A R-404A R-404A R-404A R-407C R-407C R-404A R-404A R-410A R-507 R-410A R-404A R-404A R-404A R-410A R-410A R-407a R-410A R-410A R-404A R-404A R-404A R-407A R-407A R-407A R-410A R-410A R-410A Days Notice Late 19 14 35 17 28 17 17 29 29 12 14 14 14 14 11 10 8 26 26 26 26 27 29 17 18 24 26 33 33 12 30 30 25 19 19 13 30 30 39 39 44 Entry Date Entry Filing Date Entry Number March 26, 2022 March 26, 2022 March 26, 2022 March 26, 2022 March 20, 2022 March 20, 2022 March 15, 2022 March 13, 2022 March 13, 2022 March 13, 2022 March 10, 2022 March 6, 2022 March 5, 2022 March 3, 2022 February 27, 2022 February 23, 2022 February 23, 2022 February 19, 2022 February 19, 2022 February 14, 2022 February 14, 2022 February 9, 2022 February 9, 2022 February 9, 2022 February 6, 2022 February 6, 2022 January 31, 2022 January 31, 2022 January 31, 2022 January 29, 2022 January 29, 2022 January 29, 2022 January 26, 2022 January 26, 2022 January 26, 2022 January 26, 2022 April 14, 2022 April 15, 2022 April 15, 2022 April 15, 2022 April 1, 2022 March 29, 2022 March 16, 2022 April 4, 2022 March 17, 2022 March 17, 2022 March 15, 2022 March 11, 2022 February 28, 2022 April 1, 2022 March 1, 2022 March 1, 2022 February 28, 2022 February 24, 2022 February 24, 2022 March 9, 2022 March 8, 2022 March 14, 2022 February 24, 2022 March 17, 2022 March 4, 2022 March 2, 2022 February 24, 2022 February 24, 2022 February 24, 2022 February 25, 2022 February 21, 2022 February 17, 2022 March 3, 2022 February 28, 2022 March 8, 2022 March 8, 2022 07102449621 07102448540 07102448524 07102448516 07102449001 07102448979 07102444440 07102445579 07102444697 07102444432 07102438491 07102444457 07102443921 07102437782 07102442873 07102443913 07102443905 07102441891 07102441867 07102441883 07102440646 07102440752 07102440364 07102440125 07102440117 07102440109 07102439127 07102439119 07102439127 07102448151 07102439564 07102439085 07102438830 07102438822 07102438475 07102438467 HFC/HFC Blend R-410A R-410A R-410A R-410A R-410A R-410A HFC -134a R-410A HFC -134a HFC -134a R-410A HFC -134a HFC -134a R-410A R-407C HFC-134a HFC-134a R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A Days Notice Late 33 34 34 34 26 23 15 36 18 18 19 19 9 43 16 20 19 19 19 37 36 47 29 50 40 38 38 38 38 41 37 33 50 47 55 55 16 Exhibit B 17 Entry Date March 31, 2022 March 31, 2022 March 30, 2022 March 26, 2022 March 26, 2022 March 26, 2022 March 26, 2022 March 20, 2022 March 20, 2022 March 15, 2022 March 13, 2022 March 13, 2022 March 13, 2022 March 10, 2022 March 6, 2022 March 5, 2022 March 3, 2022 February 27, 2022 February 23, 2022 February 23, 2022 February 19, 2022 February 19, 2022 February 14, 2022 February 14, 2022 February 9, 2022 February 9, 2022 February 9, 2022 February 6, 2022 February 6, 2022 January 31, 2022 January 31, 2022 January 31, 2022 January 29, 2022 January 29, 2022 January 29, 2022 January 26, 2022 January 26, 2022 January 26, 2022 January 26, 2022 2022 Q1 Unreported HFCs Entry Filing Date April 25, 2022 April 25, 2022 April 29, 2022 April 15, 2022 April 15, 2022 April 15, 2022 April 14, 2022 April 1, 2022 March 29, 2022 March 16, 2022 March 17, 2022 March 17, 2022 April 4, 2022 March 15, 2022 March 11, 2022 February 28, 2022 April 1, 2022 March 1, 2022 March 1, 2022 February 28, 2022 February 24, 2022 February 24, 2022 March 9, 2022 March 8, 2022 February 24, 2022 March 14, 2022 March 17, 2022 March 4, 2022 March 2, 2022 February 24, 2022 February 24, 2022 February 24, 2022 February 25, 2022 February 21, 2022 February 17, 2022 March 3, 2022 February 28, 2022 March 8, 2022 March 8, 2022 Entry Number 07102446072 07102445546 07102446080 07102448540 07102448524 07102448516 07102449621 07102449001 07102448979 07102444440 07102444697 07102444432 07102445579 07102438491 07102444457 07102443921 07102437782 07102442873 07102443913 07102443905 07102441891 07102441867 07102441883 07102440646 07102440364 07102440752 07102440125 07102440117 07102440109 07102439127 07102439119 07102439127 07102448151 07102439564 07102439085 07102438830 07102438822 07102438475 07102438467 HFC/HFC Blend R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A HFC-410A HFC-134a HFC-134a HFC-134a R-410A R-410A HFC-134a HFC-134a R-410A R-407C HFC-134a HFC-134a R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A R-410A 18 Exhibit C 19 Entry Date June 24, 2022 June 15, 2022 June 1, 2022 May 25, 2022 May 25, 2022 May 12, 2022 May 15, 2022 May 15, 2022 May 14, 2022 May 15, 2022 May 14, 2022 May 14, 2022 May 12, 2022 May 19, 2022 May 19, 2022 May 14, 2022 May 19, 2022 May 9, 2022 May 19, 2022 May 8, 2022 May 8, 2022 May 5, 2022 May 5, 2022 April 27, 2022 April 27, 2022 May 1, 2022 April 9, 2022 April 23, 2022 April 15, 2022 March 20, 2022 May 10, 2022 April 15, 2022 April 13, 2022 April 9, 2022 2022 Q2 Unreported HFCs Entry Filing Date July 1, 2022 June 15, 2022 June 15, 2022 June 9, 2022 June 9, 2022 May 25, 2022 May 12, 2022 May 11, 2022 May 26, 2022 May 9, 2022 May 26, 2022 May 26, 2022 May 27, 2022 May 19, 2022 May 19, 2022 May 26, 2022 May 19, 2022 May 13, 2022 May 19, 2022 May 18, 2022 May 20, 2022 May 24, 2022 May 24, 2022 May 13, 2022 May 13, 2022 April 29, 2022 April 25, 2022 May 4, 2022 April 20, 2022 March 29, 2022 May 13, 2022 April 20, 2022 April 12, 2022 April 25, 2022 Entry Number 07102462459 07102461063 07102459703 07102457905 07102457582 07102457194 07102457186 07102457152 07102456618 07102456329 07102456311 07102456295 07102456071 07102456063 07102456048 07102455792 07102455784 07102455776 07102455750 07102455743 07102455388 07102452609 07102452302 07102451213 07102451197 07102450108 07102449944 07102449811 07102448987 07102448979 07102448581 07102448565 07102447054 07102449944 HFC/HFC Blend HFC-134a HFC-134a R-410A R-410A R-410A R-410A R-404A R-404A R-407C R-404A R-407C R-404A R-507 R-404A R-404A R-404A R-404A R-404A R-404A R-404A R-404A R-410A R-410A R-410A R-410A R-407A R-407A R-404A R-404A R-410A R-410A R-404A R-407A R-407A 20 Exhibit D 21 2022 Q3 Unreported September 4, 2022 July 13, 2022 July 13, 2022 July 13, 2022 July 4, 2022 July 3, 2022 July 3, 2022 Entry Filing Date September 14, 2022 August 2, 2022 August 2, 2022 August 2, 2022 July 14, 2022 July 21, 2022 July 20, 2022 Entry Number 07102470361 07102466013 07102466005 07102465999 07102466021 07102465494 07102465478 HFC/HFC Blend R-410A R-410A R-410A R-410A R-410A R-410A HFC-125 22 Exhibit E 23 Entry Date November 22, 2022 November 10, 2022 November 10, 2022 November 10, 2022 2022 Q4 Unreported HFCs Entry Filing Date November 22, 2022 November 18, 2022 November 18, 2022 November 18, 2022 Entry Number 07102482226 07102485559 07102485542 07102485492 HFC/HFC Blend HFC-125 R-410A R-410A R-404A 24