US EPA and Department of Justice reached a settlement with Northcutt, Inc., of Wichita, Kansas, resolving alleged violations of the Significant New Alternatives Policy (SNAP) Program and Title VI of the Clean Air Act. Northcutt's operations are subject to the SNAP Program, codified at 40 C.F.R. Part 82, Subpart G (SNAP Regulations), because Northcutt has marketed, sold and distributed hydrocarbon-based refrigerants as replacements for ozone depleting substances (ODS). One of these SNAP regulations, 40 C.F.R. Part 82.176(a), prohibits the introduction into interstate commerce of any ODS substitute until a notice of intent has been submitted to EPA and 90 days have elapsed. This 90-day period enables EPA to determine, among other things, whether the ODS substitute may cause adverse effects to human health, safety, and the environment.
EPA issued a Section 114 Information Request to the company on April 28, 2014. Review of responsive information indicated that the ODS substitutes being sold by Northcutt were flammable hydrocarbon refrigerants and were being marketed as direct replacements for ODS such as the refrigerant HCFC-22, which is non-flammable and commonly used in residential air conditioning and industrial process refrigeration. If used by customers as direct replacements for non-flammable refrigerants in equipment not designed and approved for such use, fires and explosions may occur. On June 26, 2014, EPA issued a Finding of Violation to Northcutt, a