1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 CONSENT DECREE 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

 

UNITED STATES OF AMERICA, ) 

 ) 

 Plaintiff, ) Case No. 3:14-cv-03989 

 ) 

 v. ) 

 ) 

COSTCO WHOLESALE ) 

CORPORATION, ) 

 ) 

 Defendant. ) 

 ) 

CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page1 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 ii CONSENT DECREE 

TABLE OF CONTENTS

I. JURISDICTION, VENUE, AND NOTICE .............................................................2 

II. APPLICABILITY ....................................................................................................2 

III. OBJECTIVES ..........................................................................................................3 

IV. DEFINITIONS .........................................................................................................3 

V. CIVIL PENALTY ....................................................................................................6 

VI. COMPLIANCE REQUIREMENTS ........................................................................7 

 A. Refrigerant Compliance Management Plan .................................................7 

 B. Corporate-Wide Leak Rate Reductions .......................................................7 

 C. Retrofit or Replacement of Covered Appliances at Existing 

 Warehouses ..................................................................................................9 

 D. New Warehouses .......................................................................................10 

VII. PARTICIPATION IN RECOGNITION PROGRAMS ........................................10 

VIII. REPORTING REQUIREMENTS .........................................................................11 

IX. STIPULATED PENALTIES .................................................................................12 

X. FORCE MAJEURE ...............................................................................................15 

XI. DISPUTE RESOLUTION .....................................................................................17 

XII. INFORMATION COLLECTION AND RETENTION ........................................19 

XIII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ..............................20 

XIV. COSTS ...................................................................................................................21 

XV. NOTICES ...............................................................................................................21 

XVI. EFFECTIVE DATE ...............................................................................................23 

XVII. RETENTION OF JURISDICTION .......................................................................23 

XVIII. MODIFICATION ..................................................................................................23 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page2 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 iii CONSENT DECREE 

XIX. TERMINATION ....................................................................................................23 

XX. PUBLIC PARTICIPATION ..................................................................................24 

XXI. SIGNATORIES/SERVICE....................................................................................24 

XXII. INTEGRATION ....................................................................................................25 

XXIII. FINAL JUDGMENT .............................................................................................25 

XXIV. APPENDICES .......................................................................................................25 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page3 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 1 CONSENT DECREE 

 WHEREAS, Plaintiff, the United States of America, on behalf of the United States 

Environmental Protection Agency (“EPA”), has filed a Complaint in this action concurrently 

with this Consent Decree, alleging that Defendant, Costco Wholesale Corporation (“Costco”), 

violated Section 608 of the Clean Air Act (“CAA” or the “Act”), 42 U.S.C. § 7671g, and the 

commercial refrigerant repair and recordkeeping regulations at 40 C.F.R. Part 82, Subpart F, 

§§ 82.150-82.169 (Recycling and Emissions Reduction); 

 WHEREAS, the Complaint alleges that Costco has failed to comply with the leak repair 

and/or recordkeeping requirements of 40 C.F.R. Part 82, Subpart F, at some or all of the 

Warehouses identified in Appendix A to this Consent Decree; 

 WHEREAS, on November 1, 2007, EPA issued an information request to Costco 

pursuant to Section 114 of the Act, 42 U.S.C. § 7414, regarding the repair of leaks from 

commercial refrigeration appliances normally containing more than 50 pounds of refrigerant that 

includes a class I or class II ozone-depleting substance, and EPA subsequently narrowed such 

request to cover 45 Warehouses in California, Arizona, Nevada, and Hawaii; 

 WHEREAS, on January 17, 2008, and March 11, 2008, Costco submitted its responses to 

EPA’s information request, including approximately 25,000 pages of equipment records; 

 WHEREAS, the allegations in the Complaint are based on EPA’s analysis of the 

information contained in Costco’s responses to EPA’s information request; 

 WHEREAS, according to the data in Costco’s leak monitoring system, Costco’s 

Corporate-Wide Average Leak Rate for the 12 months from March 2010 to February 2011 was 

24.1 percent; 

 WHEREAS, between January 1, 2013, and June 20, 2014, Costco retrofitted all Covered 

Appliances at 32 Warehouses to use Non-ODS Refrigerant; 

 WHEREAS, Costco denies liability to the United States arising out of the transactions or 

occurrences alleged in the Complaint; 

 WHEREAS, the Parties recognize, and the Court by entering this Consent Decree finds, 

that this Consent Decree has been negotiated by the Parties in good faith and will avoid litigation 

between the Parties and that this Consent Decree is fair, reasonable, and in the public interest; 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page4 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 2 CONSENT DECREE 

 NOW, THEREFORE, before the taking of any testimony, without the adjudication of or 

admission of any issue of fact or law except as provided in Section I, and with the consent of the 

Parties, IT IS HEREBY ADJUDGED, ORDERED, AND DECREED as follows: 

I. JURISDICTION, VENUE, AND NOTICE

1. This Court has jurisdiction over the subject matter of this action and over the 

Parties pursuant to Section 113(b) of the Act, 42 U.S.C. § 7413(b), and 28 U.S.C. §§ 1331, 1345, 

and 1355. Venue lies in this district pursuant to Section 113(b) of the Act, 42 U.S.C. § 7413(b), 

and 28 U.S.C. §§ 1391(b) and 1395(a), because some of the alleged violations in the Complaint 

are alleged to have occurred in, and Costco conducts business in, this judicial district. For 

purposes of this Decree, or any action to enforce this Decree, Costco consents to the Court’s 

jurisdiction over this Decree and any such action and over Costco and consents to venue in this 

district. 

2. The United States has given notice of the commencement of this action to the 

applicable air pollution control agencies as required by Section 113(b) of the Act, 42 U.S.C. 

§ 7413(b). 

II. APPLICABILITY

3. The obligations of this Consent Decree apply to and are binding upon the United 

States, and upon Costco and any successors, assigns, or other entities or persons otherwise bound 

by law. 

4. At least 30 days prior to any transfer of ownership or operation of a Warehouse, 

Costco shall provide a copy of this Consent Decree to the proposed transferee. If the transferee 

is a Costco affiliate, this Consent Decree shall continue to apply in full. At least 15 days prior to 

a transfer to a non-Costco affiliate, Costco shall provide written notice of the prospective 

transfer, together with a copy of the proposed written agreement, to the United States 

Department of Justice, in accordance with Section XV of this Decree (Notices), and shall submit 

to the United States a plan to ensure that the Refrigerant Compliance Management Plan, or 

another refrigerant compliance management plan approved by EPA, continues to be 

implemented at the transferred Warehouse. Any attempt to transfer ownership or operation of a 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page5 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 3 CONSENT DECREE 

Warehouse without complying with this Paragraph constitutes a violation of this Decree. 

5. Costco shall provide a copy of this Consent Decree to all officers and managers 

whose duties materially include compliance with any provision of this Decree. 

6. In any action to enforce this Consent Decree, Costco shall not raise as a defense 

the failure by any of its officers, directors, employees, agents, or contractors to take any actions 

necessary to comply with the provisions of this Consent Decree. 

III. OBJECTIVES

7. The objectives of this Consent Decree are: (a) to further the goals of Subchapter 

VI of the Act, 42 U.S.C. §§ 7671-7671q, and EPA’s commercial refrigerant repair and 

recordkeeping regulations at 40 C.F.R. Part 82, Subpart F, and (b) to resolve the civil claims of 

the United States as provided in Section XIII (Effect of Settlement/Reservation of Rights). 

IV. DEFINITIONS

8. Terms used in this Consent Decree that are defined in the Act or in regulations 

promulgated pursuant to the Act shall have the meanings assigned to them in the Act or such 

regulations as of the date of lodging of this Decree, unless otherwise provided in this Decree. 

Whenever the terms set forth below are used in this Consent Decree, the following definitions 

shall apply: 

a. “Appliance,” as defined in 40 C.F.R. § 82.152, shall mean any device 

which contains and uses a Refrigerant and which is used for household or commercial purposes, 

including any air conditioner, refrigerator, chiller, or freezer; 

b. “Centrally Monitored Refrigerant Leak Detection System” shall mean an 

automated, computerized system for detecting Refrigerant leaks that, upon detecting a leak, 

automatically notifies Costco staff at the Warehouse and at Costco’s headquarters or other 

central location responsible for overseeing multiple Warehouses; 

c. “Complaint” shall mean the complaint filed by the United States in this 

action; 

d. “Consent Decree” or “Decree” shall mean this Decree and all appendices 

attached hereto (listed in Section XXIV); 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page6 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 4 CONSENT DECREE 

e. “Costco” shall mean Defendant Costco Wholesale Corporation; 

f. “Corporate-Wide Average Leak Rate” for a calendar year shall mean the 

total number of pounds of Refrigerant added to all Covered Appliances at all Warehouses during 

such calendar year (not including the initial charge of Refrigerant added to any new Covered 

Appliance) divided by the total Full Charge of all Covered Appliances at all Warehouses during 

such calendar year. For purposes of this subparagraph, the “total number of pounds of 

Refrigerant added to all Covered Appliances” shall not include (i) the initial charge of 

Refrigerant added to any new Covered Appliance; (ii) where Refrigerant has been recovered 

from an existing Covered Appliance in compliance with 40 C.F.R. § 82.156, the amount of any 

Refrigerant used to recharge such Covered Appliance, up to the amount of Refrigerant 

recovered; or (iii) the amount of any Refrigerant added to a Covered Appliance to replace 

Refrigerant released as the result of an event that EPA agrees constitutes a force majeure event 

under Section X of this Consent Decree (Force Majeure). For purposes of this subparagraph, the 

“total Full Charge of all Covered Appliances” shall include the Full Charge of any appliance that 

was at one time a Covered Appliance and that, after January 1, 2013, has been retrofitted to use, 

or replaced by an appliance that uses, refrigerant that does not consist in part or whole of a class I 

or class II ozone-depleting substance; 

g. “Covered Appliance” shall mean a commercial refrigeration Appliance 

with a Full Charge of more than 50 pounds of Refrigerant; 

h. “Day” shall mean a calendar day. In computing any period of time under 

this Consent Decree, where the last day would fall on a Saturday, Sunday, or federal holiday, the 

period shall run until the close of business of the next business day; 

i. “Effective Date” shall have the definition provided in Section XVI; 

j. “EPA” shall mean the United States Environmental Protection Agency 

and any successor departments or agencies of the United States; 

k. “Full Charge,” as defined in 40 C.F.R. § 82.152, shall mean the amount of 

Refrigerant required for normal operating characteristics and conditions of the Appliance as 

determined by using one or a combination of the following four methods: 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page7 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 5 CONSENT DECREE 

i. Use the equipment manufacturer’s determination of the correct 

Full Charge for the equipment; 

ii. Determine the Full Charge by making appropriate calculations 

based on component sizes, density of Refrigerant, volume of piping, and other relevant 

considerations; 

iii. Use actual measurements of the amount of Refrigerant added or 

evacuated from the appliance; and/or 

iv. Use an established range based on the best available data regarding 

the normal operating characteristics and conditions for the Appliance, where the midpoint of the 

range will serve as the Full Charge, and where records are maintained in accordance with 40 

C.F.R. § 82.166(q); 

l. “Global Warming Potential” shall mean how much a given mass of a 

chemical contributes to global warming over a 100-year time horizon compared to the same mass 

of carbon dioxide, as determined pursuant to IPCC, Climate Change 2007: The Physical Science 

Basis, Contribution of Working Group I to the Fourth Assessment Report of the 

Intergovernmental Panel on Climate Change (2007). 

m. “Glycol Secondary Loop Refrigeration System” shall mean a refrigeration 

system in which the secondary fluid loop, circulating between the primary fluid loop and the 

refrigerator or chiller, contains propylene glycol and not Refrigerant as the heat transfer fluid; 

n. “Non-ODS Refrigerant” shall mean any substance not consisting in part or 

whole of a class I or class II ozone-depleting substance that is used for heat transfer purposes and 

provides a cooling effect; 

o. “Paragraph” shall mean a portion of this Decree identified by an Arabic 

numeral or an upper or lower case letter; 

p. “Parties” shall mean the United States and Costco; 

q. “Refrigerant,” as defined in 40 C.F.R. § 82.152, shall mean any substance 

consisting in part or whole of a class I or class II ozone-depleting substance that is used for heat 

transfer purposes and provides a cooling effect; 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page8 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 6 CONSENT DECREE 

r. “Refrigerant Compliance Management Plan” shall mean the plan (attached 

as Appendix B to this Consent Decree) prepared by Costco and approved by EPA that is directed 

at assuring compliance with 40 C.F.R. Part 82, Subpart F (2012), at the Warehouses, and any 

subsequent amendments or changes to such plan made in accordance with Paragraph 13 of this 

Decree; 

s. “Section” shall mean a portion of this Decree identified by a Roman 

numeral; 

t. “United States” shall mean the United States of America, acting on behalf 

of EPA; and 

u. “Warehouse” shall mean any membership warehouse in the United States 

owned or operated by Costco with one or more Covered Appliances, including any such 

membership warehouse opened to the public after the date of lodging of the Consent Decree. 

V. CIVIL PENALTY

9. Within 30 days after the Effective Date of this Consent Decree, Costco shall pay 

the sum of $335,000 as a civil penalty, together with interest accruing from the date on which the 

Consent Decree is lodged with the Court, at the rate specified in 28 U.S.C. § 1961 as of the date 

of lodging. 

10. Costco shall pay the civil penalty due at https://www.pay.gov to the U.S. 

Department of Justice account, in accordance with instructions provided to Defendant by the 

Financial Litigation Unit (“FLU”) of the United States Attorney’s Office for the Northern 

District of California within 10 days after the Effective Date. The payment instructions provided 

by the FLU shall include a Consolidated Debt Collection System (“CDCS”) number, which 

Costco shall use to identify all payments required to be made in accordance with this Consent 

Decree. The FLU will provide the payment instructions to: 

Costco Wholesale Corporation 

c/o Rue Jenkins 

999 Lake Drive 

Issaquah, WA 98027 

(425) 313-6124 

rjenkins@costco.com 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page9 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 7 CONSENT DECREE 

on behalf of Costco. Costco may change the individual to receive payment instructions on their 

behalf by providing written notice of such change to the United States in accordance with 

Section XV (Notices). At the time of payment, Costco shall send notice that payment has been 

made: (i) to EPA via email at acctsreceivable.cinwd@epa.gov or via regular mail at EPA 

Cincinnati Finance Office, 26 Martin Luther King Drive, Cincinnati, OH 45268; and (ii) to the 

United States via email or regular mail in accordance with Section XV. Such notice shall 

reference the CDCS Number and DOJ case number 90-5-2-1-09643. 

11. Costco shall not deduct any penalties paid under this Decree pursuant to this 

Section or Section IX (Stipulated Penalties) in calculating its federal income tax. 

VI. COMPLIANCE REQUIREMENTS

A. Refrigerant Compliance Management Plan

12. Starting no later than 30 days after the Effective Date, Costco shall implement the 

Refrigerant Compliance Management Plan. 

13. Prior to implementing any amendments or changes to its Refrigerant Compliance 

Management Plan, Costco shall submit a revised Refrigerant Compliance Management Plan to 

EPA along with a letter identifying the amendments or changes. Costco shall implement its 

amended or changed Refrigerant Compliance Management Plan unless and until EPA notifies 

Costco in writing that it declines to approve such amendments or changes and provides written 

comments. Within 30 days of receiving EPA’s written notification, Costco shall either (i) revise 

the Refrigerant Compliance Management Plan consistent with EPA’s written comments and 

submit the revised Refrigerant Compliance Management Plan to EPA, or (ii) invoke Dispute 

Resolution under Section XI of this Consent Decree. 

B. Corporate-Wide Leak Rate Reductions

14. Costco shall achieve a Corporate-Wide Average Leak Rate that is at or below: 

a. 22.3% percent for the first calendar year after the year of the Effective 

Date; 

b. 20.7% percent for the second calendar year after the year of the Effective 

Date; and 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page10 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 8 CONSENT DECREE 

c. 19.1% percent for the third calendar year after the year of the Effective 

Date. 

15. If Costco fails to achieve a Corporate-Wide Average Leak Rate set forth in 

Paragraph 14(a) or (b) for the calendar year specified in that Paragraph, Costco shall take the 

following actions: 

a. Costco shall pay a stipulated penalty pursuant to Section IX of this 

Consent Decree. 

b. By March 1 of the year after the calendar year for which Costco failed to 

achieve the Corporate-Wide Average Leak Rate set forth in Paragraph 14, Costco shall submit to 

EPA a proposed Corrective Action Plan and shall implement the proposed Corrective Action 

Plan in accordance with the schedule set forth therein. The proposed Corrective Action Plan 

shall include (i) a description of all actions taken or to be taken to seek to ensure that Costco 

achieves the Corporate-Wide Average Leak Rate set forth in Paragraph 14 for the year after the 

calendar year for which Costco failed to achieve the required Corporate-Wide Average Leak 

Rate; and (ii) with respect to actions not already completed, the schedule for their 

implementation. 

c. If EPA provides written comments on the proposed Corrective Action 

Plan, Costco shall, within 30 days of receiving EPA’s written comments, either (i) revise the 

Corrective Action Plan consistent with EPA’s written comments, submit the revised Corrective 

Action Plan to EPA, and implement the revised Corrective Action Plan, or (ii) invoke Dispute 

Resolution under Section XI of this Consent Decree. 

16. If Costco fails to achieve the Corporate-Wide Average Leak Rate set forth in 

Paragraph 14(c) for the third calendar year after the year of the Effective Date, Costco shall take 

the following actions: 

a. Costco shall pay a stipulated penalty pursuant to Section IX of this 

Consent Decree. 

b. By March 1 of the fourth calendar year after the year of the Effective 

Date, Costco shall submit to EPA a proposed Corrective Action Plan and shall implement the 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page11 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 9 CONSENT DECREE 

proposed Corrective Action Plan in accordance with the schedule set forth therein. The proposed 

Corrective Action Plan shall include (i) a description of all actions taken or to be taken to seek to 

ensure that Costco achieves a Corporate-Wide Average Leak Rate that is at or below 19.1% for 

the fourth calendar year after the year of the Effective Date; and (ii) with respect to actions not 

already completed, the schedule for their implementation. 

c. Costco shall achieve a Corporate-Wide Average Leak Rate that is at or 

below 19.1% for the fourth calendar year after the year of the Effective Date. 

17. If Costco is required, pursuant to Paragraph 16(c), to achieve a Corporate-Wide 

Average Leak Rate that is at or below 19.1% for the fourth calendar year after the year of the 

Effective Date, and Costco fails to achieve such Corporate-Wide Average Leak Rate, Costco 

shall take the following actions: 

a. Costco shall pay a stipulated penalty pursuant to Section IX of this 

Consent Decree. 

b. By March 1 of the fifth calendar year after the year of the Effective Date, 

Costco shall submit to EPA a written report that provides a detailed explanation of the cause(s) 

of such failure. 

C. Retrofit or Replacement of Covered Appliances at Existing Warehouses

18. By the end of the third calendar year after the year of the Effective Date, at no 

fewer than 30 Warehouses, Costco shall either retrofit all Covered Appliances to use Non-ODS 

Refrigerant with a Global Warming Potential no greater than that of the refrigerant R-407F or 

replace all Covered Appliances with new commercial refrigeration appliances that use Non-ODS 

Refrigerant with a Global Warming Potential no greater than that of the refrigerant R-407F, 

pursuant to the following deadlines: 

 Cumulative Number of

Deadline Warehouses Addressed 

End of first calendar year after year of Effective Date 10 

End of second calendar year after year of Effective Date 20 

End of third calendar year after year of Effective Date 30 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page12 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 10 CONSENT DECREE 

Costco shall have sole discretion to select the Warehouses at which Covered Appliances will be 

retrofitted or replaced and to elect retrofit or replacement for each such Warehouse. In selecting 

the Warehouses at which Covered Appliances will be retrofitted or replaced, Costco shall 

consider, inter alia, the Warehouses’ history of Refrigerant leaks and potential for future 

Refrigerant leaks absent the retrofit or replacement. Warehouses at which Costco has retrofitted 

or replaced all Covered Appliances between January 1, 2013, and the Effective Date of this 

Consent Decree shall count towards Costco’s compliance with the requirements of this 

Paragraph. 

D. New Warehouses

19. Glycol Secondary Loop Refrigeration Systems. Costco shall install a Glycol 

Secondary Loop Refrigeration System for all medium-temperature Covered Appliances at all 

one-story Warehouses opened during the three calendar years after the year of the Effective 

Date. Costco may satisfy this requirement at any Warehouse by installing an alternative 

refrigeration system that will use no more Refrigerant than a Glycol Secondary Loop 

Refrigeration System would use at that Warehouse. No less than 30 days prior to commencing 

construction on any Warehouse at which Costco will install such an alternative refrigeration 

system, Costco shall provide written notice to EPA that includes supporting information 

demonstrating that the proposed alternative refrigeration system will use no more Refrigerant 

than a Glycol Secondary Loop Refrigeration System would use at that Warehouse. 

20. Centrally Monitored Refrigerant Leak Detection Systems. Costco shall install 

Centrally Monitored Refrigerant Leak Detection Systems according to the manufacturer’s 

specifications at all Warehouses opened during the three calendar years after the year of the 

Effective Date. 

VII. PARTICIPATION IN RECOGNITION PROGRAMS

21. Costco shall not seek warehouse certification from, or partnership in, any federal 

or state recognition program relating to ozone-depleting substances, including EPA’s GreenChill 

Advanced Refrigeration Partnership, until termination of this Consent Decree. This Paragraph 

shall not be construed to prohibit Costco’s exchange of data or information with or through any 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page13 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 11 CONSENT DECREE 

such recognition program. 

22. Costco shall not at any time use or rely on measures taken in order to comply with 

the obligations of Section VI of this Consent Decree, or on any reduction in its Corporate-Wide 

Average Leak Rate achieved pursuant to this Consent Decree, as the basis for participation in 

any federal or state recognition program. 

VIII. REPORTING REQUIREMENTS

23. No later than March 1 of each year after the year of the Effective Date, Costco 

shall submit to the United States a Compliance Report that includes the following information 

for the prior calendar year: 

a. a list of all Warehouse openings and closings; 

b. a description of Costco’s retrofit or replacement of Covered Appliances at 

Warehouses pursuant to Paragraph 18 of this Consent Decree, including a description of the 

Warehouses’ history (over the prior calendar year) of Refrigerant leaks and potential for future 

Refrigerant leaks absent the retrofit or replacement; 

c. a description of all refrigeration systems and leak detection systems 

installed at each Warehouse that opened; 

d. the Full Charge, in pounds, of each Covered Appliance at each 

Warehouse; 

e. the number of pounds of Refrigerant added to each Covered Appliance at 

each Warehouse; 

f. the Corporate-Wide Average Leak Rate; 

g. the total number of pounds of Refrigerant added to all Covered Appliances 

at all Warehouses; 

h. a certification that Costco has complied with the Refrigerant Compliance 

Management Plan during the prior calendar year, or a description of all incidences of 

noncompliance with the Refrigerant Compliance Management Plan during the prior calendar 

year and a certification that Costco has otherwise complied with the Refrigerant Compliance 

Management Plan; and 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page14 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 12 CONSENT DECREE 

i. an affirmative statement regarding Costco’s compliance or noncompliance 

with 40 C.F.R. Part 82, Subpart F, at the Warehouses during the prior calendar year. 

24. Data in each Compliance Report submitted by Costco under this Section shall be 

in Microsoft Excel or equivalent spreadsheet form. In addition to submitting each Compliance 

Report to the United States in accordance with the requirements of Section XV of this Consent 

Decree, Costco shall submit each Compliance Report to EPA in electronic form. 

25. Each Compliance Report submitted by Costco under this Section shall be signed 

by a Costco official and shall include the following certification: 

I certify under penalty of law that this document and all attachments were 

prepared under my direction or supervision in accordance with a system designed 

to assure that qualified personnel properly gather and evaluate the information 

submitted. Based on my inquiry of the person or persons who manage the system, 

or those persons directly responsible for gathering the information, the 

information submitted is, to the best of my knowledge and belief, true, accurate, 

and complete. I am aware that there are significant penalties for submitting false 

information, including the possibility of fine and imprisonment for knowing 

violations. 

26. Whenever any violation of this Consent Decree or any other event affecting 

Costco’s performance under this Decree, or the performance of its Warehouses, may pose an 

immediate threat to the public health or welfare or the environment, Costco shall notify EPA 

orally or by electronic or facsimile transmission as soon as possible, but no later than 24 hours 

after Costco first knew of the violation or event. This procedure is in addition to the 

requirements set forth in Paragraphs 23 through 25. 

27. The reporting requirements of this Consent Decree do not relieve Costco of any 

reporting obligations required by the Clean Air Act or implementing regulations, or by any other 

federal, state, or local law, regulation, permit, or other requirement. 

28. Any information provided pursuant to this Consent Decree may be used by the 

United States in any proceeding to enforce the provisions of this Consent Decree and as 

otherwise permitted by law. 

IX. STIPULATED PENALTIES

29. Costco shall be liable for stipulated penalties to the United States for violations of 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page15 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 13 CONSENT DECREE 

this Consent Decree as specified below, unless excused under Section X (Force Majeure). 

30. Late Payment of Civil Penalty. If Costco fails to pay the civil penalty required to 

be paid under Section V of this Decree (Civil Penalty) when due, Costco shall pay a stipulated 

penalty of $2,500 per day for each day that the payment is late. 

31. Refrigerant Compliance Management Plan. For each failure to implement the 

Refrigerant Compliance Management Plan at a Warehouse as required by Paragraph 12, Costco 

shall pay a stipulated penalty of $500 per violation per Warehouse per day. 

32. Corporate-Wide Average Leak Rates

a. If Costco fails to achieve a Corporate-Wide Average Leak Rate that is at 

or below the required Corporate-Wide Average Leak Rate for a calendar year as set forth in 

Paragraph 14, Costco shall pay stipulated penalties as follows: 

First calendar year (Paragraph 14(a)): $50,000 

Second calendar year (Paragraph 14(b)): $100,000 

Third calendar year (Paragraph 14(c)): $150,000 

b. If Costco fails to achieve the Corporate-Wide Average Leak Rate set forth 

in Paragraph 14(c) for the third calendar year after the year of the Effective Date and then fails to 

achieve a Corporate-Wide Average Leak Rate that is at or below 19.1% for the fourth calendar 

year after the year of the Effective Date pursuant to Paragraph 16(c), Costco shall pay a 

stipulated penalty of $150,000. 

33. Retrofit or Replacement of Covered Appliances at Existing Warehouses. For 

failure to complete retrofit or replacement of all Covered Appliances at existing Warehouses as 

required by Paragraph 18, Costco shall pay a stipulated penalty of $2,000 per Warehouse per day 

until such retrofit or replacement is completed. 

34. New Warehouses

 a. For each failure to install a Glycol Secondary Loop Refrigeration System 

at a new Warehouse, or alternative refrigeration system that will use no more Refrigerant than a 

Glycol Secondary Loop Refrigeration System would use at that Warehouse, as required by 

Paragraph 19, Costco shall pay a stipulated penalty of $2,000 per Warehouse per day until such 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page16 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 14 CONSENT DECREE 

installation is completed. Such penalty shall begin to accrue on the day after the date the 

Warehouse opens to the public. 

 b. For each failure to install a Centrally Monitored Refrigerant Leak 

Detection System at a new Warehouse as required by Paragraph 20, Costco shall pay a stipulated 

penalty of $2,000 per Warehouse per day until such installation is completed. Such penalty shall 

begin to accrue on the day after the date the Warehouse opens to the public. 

35. Reporting Requirements. For each failure to comply with the requirements of 

Section VIII of this Consent Decree within the specified time schedules established by this 

Decree, Costco shall pay a stipulated penalty of $1,000 per violation per day. 

36. Stipulated penalties under this Section shall begin to accrue on the day after 

performance is due or on the day a violation occurs, whichever is applicable, and shall continue 

to accrue until performance is satisfactorily completed or until the violation ceases. Stipulated 

penalties shall accrue simultaneously for separate violations of this Consent Decree. 

37. Costco shall pay any stipulated penalty within 30 days of receiving the United 

States’ written demand, except as provided in Paragraph 39 of this Consent Decree. 

38. The United States may, in the unreviewable exercise of its discretion, reduce or 

waive stipulated penalties otherwise due it under this Consent Decree. 

39. Stipulated penalties shall continue to accrue as provided in Paragraph 36 during 

any Dispute Resolution, but need not be paid until the following: 

a. If the dispute is resolved by agreement or by a decision of EPA that is not 

appealed to the Court, Costco shall pay accrued penalties determined to be owing, together with 

interest, to the United States within 30 days of the effective date of the agreement or the receipt 

of EPA’s decision or order. 

b. If the dispute is appealed to the Court and the United States prevails in 

whole or in part, Costco shall pay all accrued penalties determined by the Court to be owing, 

together with interest, within 60 days of receiving the Court’s decision or order, except as 

provided in subparagraph (c), below. 

c. If any Party appeals the District Court’s decision, Costco shall pay all 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page17 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 15 CONSENT DECREE 

accrued penalties determined to be owing, together with interest, within 15 days of receiving the 

final appellate court decision. 

40. Costco shall pay stipulated penalties owing to the United States in the manner set 

forth and with the confirmation notices required by Paragraph 10, except that the transmittal 

letter shall state that the payment is for stipulated penalties and shall state for which violation(s) 

the penalties are being paid. 

41. If Costco fails to pay stipulated penalties according to the terms of this Consent 

Decree, Costco shall be liable for interest on such penalties, as provided for in 28 U.S.C. § 1961, 

accruing as of the date payment became due. Nothing in this Paragraph shall be construed to 

limit the United States from seeking any remedy otherwise provided by law for Costco’s failure 

to pay any stipulated penalties. 

42. Subject to the provisions of Section XIII of this Consent Decree (Effect of 

Settlement/Reservation of Rights), the stipulated penalties provided for in this Decree shall be in 

addition to any other rights, remedies, or sanctions available to the United States for Costco’s 

violation of this Decree or applicable law. Costco reserves its rights to contest any such 

additional actions taken by the United States against Costco. Where a violation of this Consent 

Decree is also a violation of Section 608 of the Act or 40 C.F.R. Part 82, Subpart F, Costco shall 

be allowed a credit, for any stipulated penalties paid, against any statutory penalties imposed for 

such violation. 

X. FORCE MAJEURE

43. “Force majeure,” for purposes of this Consent Decree, is defined as any event 

arising from causes beyond the control of Costco, of any entity controlled by Costco, or of 

Costco’s contractors, that impedes – i.e., delays or prevents – the performance of any obligation 

under this Consent Decree despite Costco’s best efforts to fulfill the obligation. The requirement 

that Costco exercise “best efforts to fulfill the obligation” includes using best efforts to anticipate 

any potential force majeure event and best efforts to address the effects of any such event (a) as it 

is occurring and (b) after it has occurred to seek to prevent or minimize any resulting impedance 

to the greatest extent possible. “Force Majeure” does not include Costco’s financial inability to 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page18 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 16 CONSENT DECREE 

perform any obligation under this Consent Decree. 

44. If any event occurs or has occurred that may impede the performance of any 

obligation under this Consent Decree, whether or not caused by a force majeure event, Costco 

shall provide notice orally or by electronic or facsimile transmission to EPA, within seven days 

of when Costco first knew that the event might cause an impedance. Within 30 days thereafter, 

Costco shall provide in writing to EPA an explanation and description of the reasons for the 

impedance; the anticipated duration of the impedance; all actions taken or to be taken to prevent 

or minimize the impedance; a schedule for implementation of any measures to be taken to 

prevent or mitigate the impedance or the effect of the impedance; Costco’s rationale for 

attributing such impedance to a force majeure event if it intends to assert such a claim; and a 

statement as to whether, in the opinion of Costco, such event may cause or contribute to an 

endangerment to public health, welfare or the environment. Costco shall include with any notice 

all available documentation supporting the claim that the impedance was attributable to a force 

majeure. Failure to comply with the above requirements shall preclude Costco from asserting 

any claim of force majeure for that event for the period of time of such failure to comply, and for 

any additional impedance caused by such failure. Costco shall be deemed to know of any 

circumstance of which Costco, any entity controlled by Costco, or Costco’s contractors knew or 

should have known. 

45. If EPA agrees that the impedance or anticipated impedance is attributable to a 

force majeure event, EPA will extend the time for performance of the obligations under this 

Consent Decree that are affected by the force majeure event for such time as is necessary to 

complete those obligations and/or reduce or waive stipulated penalties otherwise due under this 

Decree as a result of Costco’s failure to perform such obligations. An extension of the time for 

performance of the obligations affected by the force majeure event shall not, of itself, extend the 

time for performance of any other obligation. EPA will notify Costco in writing of its decision, 

including the length of any extension for performance of the obligations affected by the force 

majeure event. 

46. If EPA does not agree that the impedance or anticipated impedance has been or 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page19 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 17 CONSENT DECREE 

will be caused by a force majeure event, EPA will notify Costco in writing of its decision. 

47. If Costco elects to invoke the dispute resolution procedures set forth in Section XI 

(Dispute Resolution), it shall do so no later than 15 days after receipt of EPA’s notice. In any 

such proceeding, Costco shall have the burden of demonstrating by a preponderance of the 

evidence that the impedance or anticipated impedance has been or will be caused by a force 

majeure event, that the duration of the impedance or the relief sought was or will be warranted 

under the circumstances, that best efforts were exercised to avoid and mitigate the effects of the 

impedance, and that Costco complied with the requirements of Paragraphs 43 and 44, above. If 

Costco carries this burden, the impedance at issue shall be deemed not to be a violation by 

Costco of the affected obligation of this Consent Decree identified to EPA and the Court. 

XI. DISPUTE RESOLUTION

48. Unless otherwise expressly provided for in this Consent Decree, the dispute 

resolution procedures of this Section shall be the exclusive mechanism to resolve disputes arising 

under or with respect to this Consent Decree. Costco’s failure to seek resolution of a dispute 

under this Section shall preclude Costco from raising any such issue as a defense to an action by 

the United States to enforce any obligation of Costco arising under this Decree. 

49. Informal Dispute Resolution. Any dispute subject to Dispute Resolution under 

this Consent Decree shall first be the subject of informal negotiations. The dispute shall be 

considered to have arisen when Costco sends the United States a written Notice of Dispute. 

Such Notice of Dispute shall state clearly the matter in dispute. The period of informal 

negotiations shall not exceed 20 days from the date the dispute arises, unless that period is 

modified by written agreement. If the Parties cannot resolve a dispute by informal negotiations, 

then the position advanced by the United States shall be considered binding unless, within 20 

days after the conclusion of the informal negotiation period, Costco invokes formal dispute 

resolution procedures as set forth below. 

50. Formal Dispute Resolution. Costco shall invoke formal dispute resolution 

procedures, within the time period provided in the preceding Paragraph, by serving on the United 

States a written Statement of Position regarding the matter in dispute. The Statement of Position 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page20 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 18 CONSENT DECREE 

shall include, but need not be limited to, any factual data, analysis, or opinion supporting 

Costco’s position and any supporting documentation relied upon by Costco. 

51. The United States shall serve its Statement of Position within 45 days of receipt of 

Costco’s Statement of Position. The United States’ Statement of Position shall include, but need 

not be limited to, any factual data, analysis, or opinion supporting that position and any 

supporting documentation relied upon by the United States. The position advanced by the 

United States shall be binding on Costco, unless Costco files a motion for judicial review of the 

dispute in accordance with the following Paragraph. 

52. Costco may seek judicial review of the dispute by filing with the Court and 

serving on the United States, in accordance with Section XV of this Consent Decree (Notices), a 

motion requesting judicial resolution of the dispute. The motion must be filed within 10 days of 

receipt of the United States’ Statement of Position pursuant to the preceding Paragraph. The 

motion shall contain a written statement of Costco’s position on the matter in dispute, including 

any supporting factual data, analysis, opinion, or documentation, and shall set forth the relief 

requested and any schedule within which the dispute must be resolved for orderly 

implementation of the Consent Decree. 

53. The United States shall respond to Costco’s motion within the time period 

allowed by the Local Rules of this Court. Costco may file a reply memorandum, to the extent 

permitted by the Local Rules. 

54. Standard of Review. Except as otherwise provided in this Consent Decree, in any 

dispute brought under Paragraph 50, Costco shall bear the burden of demonstrating that its 

position complies with this Consent Decree and that it is entitled to relief under applicable 

principles of law. In their initial filings with the Court under Paragraphs 52 and 53, the Parties 

shall state their respective positions as to the applicable standard of law for resolving the dispute. 

55. The invocation of dispute resolution procedures under this Section shall not, by 

itself, extend, postpone, or affect in any way any obligation of Costco under this Consent Decree, 

unless and until final resolution of the dispute so provides. Stipulated penalties with respect to 

the disputed matter shall continue to accrue from the first day of noncompliance, but payment 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page21 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 19 CONSENT DECREE 

shall be stayed pending resolution of the dispute as provided in Paragraph 39. If Costco does not 

prevail on the disputed issue, stipulated penalties shall be assessed and paid as provided in 

Section IX (Stipulated Penalties). 

XII. INFORMATION COLLECTION AND RETENTION

56. The United States and its representatives, including attorneys, contractors, and 

consultants, shall have the right of entry into any Warehouse covered by this Consent Decree, at 

all reasonable times, upon presentation of credentials, to: 

a. monitor the progress of activities required under this Consent Decree; 

b. verify any data or information submitted to the United States in 

accordance with the terms of this Consent Decree; 

c. obtain documentary evidence, including photographs and similar data; and 

d. assess Costco’s compliance with this Consent Decree. 

57. Until three years after the termination of this Consent Decree, Costco shall retain, 

and shall instruct its contractors and agents to preserve, all non-identical copies of all documents, 

records, or other information (including documents, records, or other information in electronic 

form) in its or its contractors’ or agents’ possession or control, or that come into its or its 

contractors’ or agents’ possession or control, necessary to demonstrate Costco’s performance of 

its obligations under this Consent Decree. This information-retention requirement shall apply 

regardless of any contrary corporate or institutional policies or procedures. At any time during 

this information-retention period, upon written request by the United States, Costco shall within 

30 days provide copies of any documents, records, or other information required to be 

maintained under this Paragraph. 

58. At the conclusion of the information-retention period provided in the preceding 

Paragraph, Costco shall notify the United States at least 90 days prior to the destruction of any 

documents, records, or other information subject to the requirements of the preceding Paragraph 

and, upon written request by the United States, Costco shall within 30 days deliver any such nonprivileged documents, records, or other information to EPA. Costco may assert that certain 

documents, records, or other information is privileged under the attorney-client privilege or any 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page22 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 20 CONSENT DECREE 

other privilege recognized by federal law. If Costco asserts such a privilege, it shall provide the 

following: (1) the title of the document, record, or information; (2) the date of the document, 

record, or information; (3) the name and title of each author of the document, record, or 

information; (4) the name and title of each addressee and recipient; (5) a description of the 

subject of the document, record, or information; and (6) the privilege asserted by Costco. 

However, no documents, records, or other information created or generated pursuant to the 

requirements of this Consent Decree shall be withheld on grounds of privilege. 

59. Costco may also assert that information required to be maintained or provided to 

the United States under this Consent Decree is protected as Confidential Business Information 

(“CBI”) under 40 C.F.R. Part 2. As to any information that Costco seeks to protect as CBI, 

Costco shall follow the procedures set forth in 40 C.F.R. Part 2. 

60. This Consent Decree in no way limits or affects any right of entry and inspection, 

or any right to obtain information, held by the United States pursuant to applicable federal laws, 

regulations, or permits, nor does it limit or affect any duty or obligation of Costco to maintain 

documents, records, or other information imposed by applicable federal or state laws, 

regulations, or permits. 

XIII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS

61. This Consent Decree resolves the civil claims of the United States against Costco 

for any violations of 40 C.F.R. §§ 82.156(i), 82.166(k), or 82.166(m) at the Warehouses arising 

out of facts and events that occurred prior to the date of lodging, including the civil claims of the 

United States for the violations alleged in the Complaint through the date of lodging. 

62. The United States reserves all legal and equitable remedies available to enforce 

the provisions of this Consent Decree, except as expressly stated in Paragraph 61. This Consent 

Decree shall not be construed to limit the rights of the United States to obtain penalties or 

injunctive relief under the Act or implementing regulations, or under other federal laws, 

regulations, or permit conditions, except as expressly specified in Paragraph 61. 

63. In any subsequent administrative or judicial proceeding initiated by the United 

States for injunctive relief, civil penalties, or other appropriate relief relating to the Warehouses, 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page23 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 21 CONSENT DECREE 

Costco shall not assert, and may not maintain, any defense or claim based upon the principles of 

waiver, res judicata, collateral estoppel, issue preclusion, claim preclusion, claim-splitting, or 

other defenses based upon any contention that the claims raised by the United States in the 

subsequent proceeding were or should have been brought in the instant case, except with respect 

to claims that have been specifically resolved pursuant to Paragraph 61. 

64. This Consent Decree is not a permit, or a modification of any permit, under any 

federal, state, or local laws or regulations. Costco is responsible for achieving and maintaining 

complete compliance with all applicable federal, state, and local laws, regulations, and permits; 

and Costco’s compliance with this Consent Decree shall be no defense to any action commenced 

pursuant to any such laws, regulations, or permits, except as set forth herein. The United States 

does not, by its consent to the entry of this Consent Decree, warrant or aver in any manner that 

Costco’s compliance with any aspect of this Consent Decree will result in compliance with 

provisions of the Act, 42 U.S.C. § 7401 et seq., or with any other provisions of federal, state, or 

local laws, regulations, or permits. 

65. This Consent Decree does not limit or affect the rights of Costco or of the United 

States against any third parties, not party to this Consent Decree, nor does it limit the rights of 

third parties, not party to this Consent Decree, against Costco, except as otherwise provided by 

law. 

66. This Consent Decree shall not be construed to create rights in, or grant any cause 

of action to, any third party not party to this Consent Decree. 

XIV. COSTS

67. The Parties shall bear their own costs of this action, including attorney’s fees, 

except that the United States shall be entitled to collect the costs (including attorney’s fees) 

incurred in any action necessary to collect any portion of the civil penalty or any stipulated 

penalties due but not paid by Costco. 

XV. NOTICES

68. Unless otherwise specified herein, whenever notifications, submissions, or 

communications are required by this Consent Decree, they shall be made in writing and 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page24 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 22 CONSENT DECREE 

addressed as follows: 

To the United States: 

Chief, Environmental Enforcement Section 

Environment and Natural Resources Division 

U.S. Department of Justice 

P.O. Box 7611 Ben Franklin Station 

Washington, DC 20044-7611 

eescdcopy.enrd@usdoj.gov 

Re: DOJ No. 90-5-2-1-09643 

and 

Brian Riedel (Riedel.Brian@epa.gov) 

Andrew Chew (Chew.Andrew@epa.gov) 

U.S. Environmental Protection Agency 

Region IX 

75 Hawthorne Street 

San Francisco, CA 94105 

To EPA: 

 

Brian Riedel (Riedel.Brian@epa.gov) 

Andrew Chew (Chew.Andrew@epa.gov) 

U.S. Environmental Protection Agency 

Region IX 

75 Hawthorne Street 

San Francisco, CA 94105 

To Costco: 

General Counsel 

Legal Department 

Costco Wholesale Corporation 

999 Lake Drive 

Issaquah, WA 98027 

and 

Mark Schneider (MWSchneider@perkinscoie.com) 

Chris Baird (JCBaird@perkinscoie.com) 

Perkins Coie LLP 

1201 Third Ave., Suite 4800 

Seattle, WA 98101 

69. Any Party may, by written notice to the other Parties, change its designated notice 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page25 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 23 CONSENT DECREE 

recipient or notice address provided above. 

70. Notices submitted pursuant to this Section shall be deemed submitted upon 

mailing or electronic mailing, as applicable, unless otherwise provided in this Consent Decree or 

by mutual agreement of the Parties in writing. 

XVI. EFFECTIVE DATE

71. The Effective Date of this Consent Decree shall be the date upon which this 

Decree is entered by the Court or a motion to enter the Decree is granted, whichever occurs first, 

as recorded on the Court’s docket. 

XVII. RETENTION OF JURISDICTION

72. The Court shall retain jurisdiction over this case until termination of this Consent 

Decree, for the purpose of resolving disputes arising under this Decree or entering orders 

modifying this Decree, pursuant to Sections XI and XVIII, or effectuating or enforcing 

compliance with the terms of this Decree. 

XVIII. MODIFICATION

73. The terms of this Consent Decree, including any attached appendices, may be 

modified only by a subsequent written agreement signed by the Parties. Where the modification 

constitutes a material change to this Decree, it shall be effective only upon approval by the 

Court. 

74. Any disputes concerning modification of this Decree shall be resolved pursuant to 

Section XI of this Decree (Dispute Resolution), provided, however, that, instead of the burden of 

proof provided by Paragraph 54, the Party seeking the modification bears the burden of 

demonstrating that it is entitled to the requested modification in accordance with Federal Rule of 

Civil Procedure 60(b). 

XIX. TERMINATION

75. After Costco has completed the requirements of Sections VI.A and VI.B of this 

Consent Decree, has complied with all other requirements of this Decree, and has paid the civil 

penalty and any accrued stipulated penalties as required by this Decree, Costco may serve upon 

the United States a Request for Termination, stating that Costco has satisfied those requirements, 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page26 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 24 CONSENT DECREE 

together with all necessary supporting documentation. 

76. Following receipt by the United States of Costco’s Request for Termination, the 

Parties shall confer informally concerning the Request and any disagreement that the Parties may 

have as to whether Costco has satisfactorily complied with the requirements for termination of 

this Consent Decree. If the United States agrees that the Consent Decree may be terminated, the 

Parties shall submit, for the Court’s approval, a joint stipulation terminating the Decree. 

77. If the United States does not agree that the Consent Decree may be terminated, 

Costco may invoke Dispute Resolution under Section XI of this Decree. However, Costco shall 

not seek Dispute Resolution of any dispute regarding termination, under Paragraph 50 of Section 

XI, until 60 days after service of its Request for Termination. 

XX. PUBLIC PARTICIPATION

78. This Consent Decree shall be lodged with the Court for a period of not less than 

30 days for public notice and comment in accordance with 28 C.F.R. § 50.7. The United States 

reserves the right to withdraw or withhold its consent if the comments regarding the Consent 

Decree disclose facts or considerations indicating that the Consent Decree is inappropriate, 

improper, or inadequate. Costco consents to entry of this Consent Decree without further notice 

and agrees not to withdraw from or oppose entry of this Consent Decree by the Court or to 

challenge any provision of the Decree, unless the United States has notified Costco in writing 

that it no longer supports entry of the Decree. 

XXI. SIGNATORIES/SERVICE

79. Each undersigned representative of Costco and the Assistant Attorney General for 

the Environment and Natural Resources Division of the Department of Justice certifies that he or 

she is fully authorized to enter into the terms and conditions of this Consent Decree and to 

execute and legally bind the Party he or she represents to this document. 

80. This Consent Decree may be signed in counterparts, and its validity shall not be 

challenged on that basis. Costco agrees to accept service of process by mail with respect to all 

matters arising under or relating to this Consent Decree and to waive the formal service 

requirements set forth in Rules 4 and 5 of the Federal Rules of Civil Procedure and any 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page27 of 51
 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

 25 CONSENT DECREE 

applicable Local Rules of this Court including, but not limited to, service of a summons. 

XXII. INTEGRATION

81. This Consent Decree constitutes the final, complete, and exclusive agreement and 

understanding among the Parties with respect to the settlement embodied in the Decree and 

supersedes all prior agreements and understandings, whether oral or written, concerning the 

settlement embodied herein. Other than deliverables that are subsequently submitted and 

approved pursuant to this Consent Decree, no other document, nor any representation, 

inducement, agreement, understanding, or promise, constitutes any part of this Decree or the 

settlement it represents, nor shall it be used in construing the terms of this Decree. 

XXIII. FINAL JUDGMENT

82. Upon approval and entry of this Consent Decree by the Court, this Consent 

Decree shall constitute a final judgment of the Court as to the United States and Costco. 

XXIV. APPENDICES

83. The following appendices are attached to and part of this Consent Decree: 

“Appendix A” is the list of Warehouses as of the date of lodging of the Consent Decree. 

“Appendix B” is the Refrigerant Compliance Management Plan. 

Dated and entered this ______ day of _____________________, 20____. 

 ______________________________________ 

 

 United States District Judge 

 Northern District of California 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page28 of 51
1 THE UNDERSIGNED PARTIES enter into this Consent Decree in the matter ofUnited States v.

Costco Wholesale Corporation (N.D. Cal.):

2

3 FOR PLAINTIFF UNITED STATES OF AMERICA:

4

5

6 SAM HIRSC

~ Acting Assistant Attorney General

Environment and Natural Resources Division

8

9

10 ~,i~~W~-~CJq,~7~`~a

11 MARK SABATH

Senior Attorney

12 Environmental Enforcement Section

Environment and Natural Resources Division

13 U.S. Department of Justice

P.O. Box 7611

14 Washington, DC 20044-7611

is (202) 514-1196

16

17

18

19

20

21

22 i

23

24

25

26

27

28

26 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page29 of 51
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

THE i1NDERSIGNED PARTIES enter into this Consent Decree in the matter of United States v.

Costco Wholesale Corporation (N.D. Cal.):

FOR PLAINTIFF UNITED STATES OF AMERICA:

S SAN SHINKMAN, Director

Office of Civil Enforcement

Office of Enforcement and Compliance Assurance

U.S. Environmental Protection Agency

1200 Pennsylvania Ave., N.W.

Washington, D.C. 20460

PHILLIP BROOKS

Director, Air Enforcement Division

Office of Civil Enforcement

Office of Enforcement and Compliance Assurance

U.S. Environmental Protection Agency

27 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page30 of 51
Case3:14-cv-03989 Document2-1 Filed09/03/14 Page31 of 51
Case3:14-cv-03989 Document2-1 Filed09/03/14 Page32 of 51
APPENDIX A 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page33 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

1 4401 4th Ave South Seattle WA

6 400 Costco Dr Suite 150 Tukwila WA

8 8629 120th Ave NE Kirkland WA

9 15901 SE Jenkins Raod Aloha OR

10 330 W Dimond Blvd Anchorage AK

13 10000 Mickelberry Rd NW Silverdale WA

17 2828 Chad Dr Eugene OR

19 4299 Guide Meridian St Bellinghan WA

21 3150 Fostoria Way Danville CA

24 1335 S Bradley Santa Maria CA

25 2200 Harvard Way Reno NV

28 27972 Cabot Rd Laguna Niguel CA

38 1616 East Hammer Ln Stockton CA

44 21300 Roscoe Blvd Canoga Park CA

61 35100 Enchanted Pkwy S Federal Way WA

63 4125 Debarr Rd Anchorage AK

64 5500 Littlerock Rd SE Tumwater WA

65 3639 Crater Lake Hwy Medford OR

66 7619 N Division St Spokane WA

67 3220 North Reserve St Missoula MT

68 1010 Hawthorne Salem OR

69 2290 King Ave W Billings MT

88 1800 W Sample Rd Pompano Beach FL

92 8300 Park Blvd Doral FL

93 3250 Northlake Blvd Lake Park FL

95 2219 SO 37th St Tacoma WA

96 2505 Catron St Bozeman MT

97 13130 SE 84th Ave Clackamas OR

101 2500 NE Hwy 20 Bend OR

103 301 5th St Clarkston WA

106 1175 North 205th St Seattle WA

107 5225 Commercial Blvd Juneau AK

110 1801 10th Ave NW Issaquah WA

111 7850 SE Dartmouth Tigard OR

112 375 Highline Dr East Wenatchee WA

114 10200 19th Ave SE Everett WA

116 1420 Renaissance Blvd NE Albuquerque NM

117 5700 Lindero Canyon Rd Westlake Villate CA

119 540 Haleakala Hwy Kahului HI

122 2655 El Camino Real Tustin CA

124 1755 Hacienda Dr Vista CA

A‐1 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page34 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

125 1006 West Wabash Ave Eureka CA

126/20 11000 Garden Grove Blvd Garden Grove CA

127 700 Old Clear Creek Rd Carson City NV

128 2660 Park Center Dr Simi Valley CA

130 2901 Los Feliz Blvd Los Angeles CA

135 380 W Ashlan Ave Clovis CA

140 73‐5600 Maiau St Kailua‐Kona HI

143 1000 N Rengstorff Mountain View CA

144 450 10th St San Francisco CA

145 731 Pole Line Rd Twin Falls ID

149 220 Sylvania Ave Santa Cruz CA

182 14585 Biscayne Blvd N Miami Beach FL

183 741 Orange Ave Altamonte Springs FL

184 2101 Waterbridge Blvd Orlando FL

185 3333 University Blvd Winter Park FL

187/350 3980 Venture Dr Duluth GA

188 6350 Peachtree Dunwoody Rd NE Atlanta GA

189 645 Barrett Pkwy NW Kennesaw GA

202 850 Glenrock Rd Norfolk VA

203 575 E Ordnance Rd Glen Burnie MD

204 4725 West Ox Rd Fairfax VA

205 9650 West Broad St Glen Allen VA

206 3000 Middle Country Rd Nesconset NY

213 880 Russell Ave Gaithersburg MD

214 10925 Baltimore Ave Beltsville MD

218 21398 Price Cascades Plaza Sterling VA

221 77 Willowbrook Blvd Wayne NJ

222 2835 Route 35 N Hazlet NJ

225 10701 Sudley Manor Dr Manassas VA

226 1250 Old Country Rd Westbury NY

227 7373 Boston Blvd Springfield VA

230 125 Beacon Dr Holbrook NY

231 80 South River St Hackensack NJ

233 1200 S Fern St Arlington VA

237 625 Broadhollow Rd Melville NY

238 1830 Reservoir St Harrisonburg VA

239 251 Front Royal Pike Winchester VA

240 10 Garret Place Commack NY

241 1 Industrial Ln New Rochelle NY

243 32‐50 Vernon Blvd Long Island NY

244 156 State Route #10 West East Hanover NJ

A‐2 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page35 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

247 12121 Jefferson Ave Newport News VA

248 740 Upper State Rd North Wales PA

249 1510 N Pointe Dr Durham NC

301 11 Newbury St Danvers MA

302 119 Daggett Dr West Springfield MA

303 120 Stockwell Dr Avon MA

304 200 Federal Rd Brookfield CT

305 50 Overlook Blvd Nanuet NY

306 20 Bridewell Place Clifton NJ

307 311 Daniel Webster Hwy Nashua NH

308 71 2nd Ave Waltham MA

310 605 Rockaway Tpke Lawrence NY

312 1718 Boston Post Rd Milford CT

313 3600 E Main St Waterbury CT

314 218 Lower Mountain View Colchester VT

315 315 Route 15 N Wharton NJ

316 2975 Richmond Ave Staten Island NY

317 1875 Hempstead Rd Lancaster PA

319 200 Legacy Blvd Dedham MA

320 1055 Hudson St Union NJ

321 20 Stew Leonard Dr Yonkers NY

322 325 Promenade Blvd Bridgewater NJ

323 205 Vineyard Rd Edison NJ

324 779 Connecticut Ave Norwalk CT

325 7077 Arundel Mills Circle Hanover MD

326 1 Westchester Ave Port Chester NY

327 5125 Jonestown Rd Harrisburg PA

328 1050 Cranberry Square Dr Cranberry Township PA

329 2361 Hwy 66 Ocean Township NJ

330 10 Monocacy Blvd Frederick MD

332 202 Costco Dr Pittsburgh PA

333 2 Mystic View Rd Everett MA

334 14390 Chantilly Crossing Chantilly VA

335 1185 Ave 65 Infanteria San Juan PR

336 2655 Gulf To Bay Blvd Clearwater FL

337 1300 Edwards Ferry Rd Leesburg VA

338 1021 Oak Forest Ln Myrtle Beach SC

339 4201 West Wendover Ave Greensboro NC

340 3102 Plank Rd #600 Fredericksburg VA

341 3000 Commerce Crossing Rd Commerce Township MI

342 1320 South Route #59 Naperville IL

A‐3 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page36 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

343 35804 Detroit Rd Avon OH

344 1409 Golden Gate Blvd Cleveland OH

345 17800 Congress Ave Boca Raton FL

346 6110 East 86th St Indianapolis IN

347 9010 Michigan Rd Indianapolis IN

348 2900 Patriot Blvd Glenview IL

349 9350 Marshall Dr Lenexa KS

351 7171 Cypress Lake Dr Forty Myers FL

352 2431 N Germantown Pkwy Cordova TN

353 3775 Hacks Cross Rd Memphis TN

354 6275 Naples Blvd Naples FL

356 1205 Memorial Pkwy NW Huntsville AL

357 4901 Gate Pkwy Jacksonville FL

358 10921 Causeway Blvd Brandon FL

359 500 Tyvola Rd Charlotte NC

360 3050 Ashley Town Ctr Dr Charleston SC

361 1085 Hanes Mall Blvd Winston‐Salem NC

362 3650 Galleria Circle Hoover AL

364 2399 Rd 2 KM 15.5 Bayamon PR

365 Plaza Centro Mall II Caguas PR

367 2125 Matthew Township Pk Matthews NC

368 4200 Rusty Rd St. Louis MO

369 12221 Blue Valley Pkwy Overland Park KS

370 1310 E 79th Ave Merrillville IN

371 505 W Army Trail Rd Bloomingdale IL

372 12547 Riverdale Blvd Coon Rapids MN

373 19040 E Valley View Pkwy Independence MO

374 45460 Market St Shelby Township MI

375 241 East Linwood Blvd Kansas City MO

376 400 Brown Rd Auburn Hills MI

378 680 S Rand Rd Lake Zurich IL

379 1100 East Kemper Rd Springdale OH

380 2746 N Clybourn Ave Chicago IL

381 7300 S Cicero Ave Bedford Park IL

382 200 Costco Way St. Peters MO

383 7311 N Melvina Ave Niles IL

386 98 Seaboard Ln Brentwood TN

387 1375 N Meacham Rd Schaumburg IL

388 1901 W 22nd St Oak Brook IL

390 13700 Middlebelt Rd Livonia MI

391 20000 Haggerty Rd Livonia MI

A‐4 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page37 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

403 101 Town Center Pkwy Santee CA

407 6255 E Grant Rd Tucson AZ

410 12324 Hoxie Ave Norwalk CA

411 17900 Newhope St Fountain Valley CA

412 1220 W Foothill Blvd Azusa CA

418 900 South Harbor Blvd Fullerton CA

420 2001 East Ventura Blvd Oxnard CA

422 451 S Airport Blvd S San Francisco CA

424 2200 E Willow St Signal Hill CA

427 15255 North Hayden Rd Scottsdale AZ

428 2207 W Commonwealth Alhambra CA

429 33961 Doheny Park Rd San Juan Capistrano CA

431 3901 W Costco Dr Tucson AZ

432 480 N McKinley St Corona CA

436 1445 W Elliot Rd Tempe AZ

437 8810 Tampa Ave Northridge CA

438 11260 White Rock Rd Rancho Cordova CA

439 1471 S Havana St Aurora CO

440 6400 W 92nd Ave Westminster CO

441 72‐800 Dinah Shore Dr Palm Desert CA

443 7900 W Quincy Ave Littleton CO

445 22633 Savi Ranch Pkwy Yorba Linda CA

447 18649 Via Princessa Santa Clarita CA

452 12350 Carmel Mountain Rd San Diego CA

453 5101 Business Center Dr Fairfield CA

454 115 Technology Dr Irvine CA

459 1345 N Montebellow Blvd Montebello CA

460 895 East H St Chula Vista CA

462 951 Palomar Airport Blvd Carlsbad CA

465 4502 East Oak St Phoenix AZ

466 3911 Hwy 69 Prescott AZ

468 8686 Park Meadows Ctr Dr Littleton CO

469 8125 Fletcher Pkwy La Mesa CA

471 1600 Expo Pkwy Sacramento CA

472 1339 N Davis Rd Salinas CA

474 7095 Market Place Dr Goleta CA

475 1600 El Camino Real S San Francisco CA

476 2751 Skypark Dr Torrance CA

478 1099 E Hospitality Ln San Bernardino CA

480 600 Marshall Rd Superior CO

481 1415 N Arizona Ave Gilbert AZ

A‐5 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page38 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

483 650 Gateway Center Dr San Diego CA

484 648 East 800 South Orem UT

485 94‐1231 Ka Uka Blvd Waipahu HI

486 8505 West Gage Blvd Kennewick WA

488 2345 Fenton Pkwy San Diego CA

489 5300 Overton Ridge Blvd Ft. Worth TX

490 19001 N 27th Ave Phoenix AZ

644 2887 South Market St Gilbert AZ

659 5901 Redwood Dr Rohnert Park CA

660 1201 39th SW Puyallup WA

661 3801 Pelandale Ave Modesto CA

662 1725 S Burlington Blvd Burlington WA

664 3800 N Central Expressway Plano TX

665 1646 W Montebello Phoenix AZ

667 500 Eubank Blvd SE Albuquerque NM

668 600 West Arbrook Blvd Arlington TX

669 2601 E State Hwy 114 Southlake TX

670 5601 East Sprague Ave Spokane WA

672 835 North 3050 East St. George UT

673 791 Marks St Henderson NV

674 17550 N 79th Ave Glendale AZ

676 5195 Wadsworth Blvd Arvada CO

677 1051 Burbank Blvd Burbank CA

678 11800 4th St Rancho Cucamonga CA

679 17550 Castelton St City of Industry CA

681 10401 Research Blvd Austin TX

682 3031 Killdeer Ave Albany OR

685 801 South Pavilion Dr Las Vegas NV

686 9404 Central Ave Montclair CA

687 525 Alakawa St Honolulu HI

688 3800 Rosedale Hwy Bakersfield CA

690 27220 Heather Ridge Rd Laguna Niguel CA

691 10000 W McDowell Rd Avondale AZ

692 1255 NE 48th Ave Hillsboro OR

693 1201 N Loop 1604 East San Antonio TX

694 1051 Hume Way Vacaville CA

735 573 West 100 North W Bountiful UT

736 595 S Galleria Way Chandler AZ

737 6555 N Decatur Blvd Las Vegas NV

738 2450 E Beardsley Rd Phoenix AZ

742 15915 Pines Blvd Pembroke Pines FL

A‐6 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page39 of 51
Appendix A:  List of Warehouses

Warehouse No. Address City State

743 2855 Jordan Court Alpharetta GA

744 4901 Wilson Ave Wyoming MI

745 2330 Hwy 93 N Kalispell MT

747 24008 Snohomish Woodinville Rd Woodinville WA

748 5401 Katella Ave Cypress CA

749 100 Centerton Rd Mt. Laurel NJ

760 7251 Camino Arroyo Gilroy CA

761 2051 S Cole Rd Boise ID

762 1141 West Ave L Lancaster CA

764 5201 S Intermountain Dr Murray UT

765 1800 Cavitt Dr Folsom CA

768 6101 Gateway West Blvd El Paso TX

769 3560 West Century Blvd Inglewood CA

770 3656 Wall Ave South Ogden UT

771 7000 Auburn Blvd Citrus Heights CA

772 6720 NE 84th St Vancouver WA

773 355 East Neider Ave Coeur D'Alene ID

774 250 N Randall Rd Lake in the Hills IL

775 12155 Tech Center Dr Poway CA

777 101 N Beach Blvd La Habra CA

778 43621 Pacific Commons Blvd Fremont CA

779 999 N Elmhurst Rd Mt. Prospect IL

780 75 Freshwater Blvd Enfield CT

781 1130 Broadway Chula Vista CA

782 2955 N Tegner Rd Turlock CA

783 12011 Technology Dr Eden Prairie MN

786 6700 Whitmore Lake Rd Brighton MI

788 7205 Mills Civic Pkwy West Des Moines IA

A‐7 CONSENT DECREE

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page40 of 51
APPENDIX B 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page41 of 51
REFRIGERANT COMPLIANCE MANAGEMENT PLAN 

Costco Wholesale Corporation 

This Refrigerant Compliance Management Plan (CMP) was developed to promote and monitor 

Costco’s compliance with Section 608 of the Clean Air Act and implementing regulations, the 

purpose of which is “to reduce emissions of class I and class II refrigerants and their substitutes 

to the lowest achievable level by maximizing the recapture and recycling of such refrigerants 

during the service, maintenance, repair and disposal of appliances . . . .” 40 C.F.R. § 82.150(a). 

This CMP establishes policies and procedures to direct Costco’s use and maintenance of 

regulated refrigerants and refrigeration equipment. This CMP applies to appliances that contain 

50 or more pounds of class II refrigerants (regulated refrigeration equipment) at Costco 

warehouses in the United States. If any general statements as to the purpose or policy of this 

CMP conflict with any of the specific requirements or directives in this CMP, the specific 

requirements or directives shall control. 

A. POLICY 

Costco is committed to providing a safe workplace and complying with all environmental 

regulatory requirements. Costco does not currently use class I refrigerants. Costco shall, in 

compliance with the policies and procedures set forth in this CMP, implement management 

practices related to use of refrigerants and maintenance and repair of regulated refrigerant 

equipment, and monitor and update an electronic data management system in order to track 

compliance with applicable regulations. 

B. ORGANIZATION AND OVERSIGHT 

1. Purpose

To establish an organizational system for implementing the policies and procedures in this CMP 

and to describe the responsibilities of personnel responsible for implementing this CMP, and to 

preserve warehouse autonomy while maintaining company-wide consistency by allowing for 

corporate oversight and verification of compliance. 

2. General Organizational Structure

Costco employees at the individual warehouse and corporate levels have specific responsibilities 

related to the implementation of this CMP. The main personnel positions responsible for 

implementing the provisions of this CMP are the Warehouse Refrigerant Representatives and the 

Refrigerant Compliance Supervisors. Specific responsibilities are described in the subsections 

below. Costco uses the Verisae data management system (Verisae system), an electronic data 

management system, to track information associated with its refrigerant systems at all 

warehouses that use regulated refrigerant equipment in the United States. This system will be 

utilized by Costco employees, as discussed below, to implement this CMP. 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page42 of 51
-2- 

3. Warehouse Refrigerant Representative 

Costco shall designate one employee in each warehouse subject to this CMP as the “Warehouse 

Refrigerant Representative.” Warehouse Refrigerant Representatives are responsible for 

monitoring individual contractor compliance with electronic data entry requirements set forth in 

Section G (Verisae system). Specific duties of the Warehouse Refrigerant Representative 

include: 

 Using and understanding the Verisae system and populating reports; 

 Assisting the Refrigerant Compliance Supervisors (as defined in Section B.4 below) 

as necessary; 

 Helping contractors to understand and use the Verisae system to track repairs of all 

regulated refrigeration equipment; 

 For those Warehouses that pay contractors, monitoring whether contractors have 

uploaded required leak repair data into the Verisae system prior to Costco’s payment 

of invoices for the associated work; 

 Monitoring the Verisae system data entries; 

 Maintaining hard copies of regulated refrigeration equipment service records, as 

discussed further in Section G; 

 Assisting the Refrigerant Compliance Supervisors to investigate and evaluate any 

compliance issues with this CMP. 

4. Refrigerant Compliance Supervisor 

Costco shall designate two or more persons located at Costco Corporate Headquarters in 

Issaquah, Washington, to serve as Refrigerant Compliance Supervisors (each, an RCS, and 

together, RCSs). At least one RCS will be a member of Costco’s Energy Department (RCS – 

Energy), and at least one RCS will be a member of Costco’s Purchasing Department (RCS – 

Purchasing). The RCSs are responsible for overseeing individual warehouse and contractor 

compliance with this CMP as well as coordinating U.S. company-wide responses to address 

noncompliance. Specific duties of the RCSs include: 

 Using and understanding the Verisae system and populating reports; 

 Reviewing notices of leaks and noncompliance (RCS – Energy) and ensuring 

appropriate corrective actions are taken including, if necessary, initiating (with 

Costco’s Legal Department) written notice to EPA (RCS – Purchasing); 

 For those Warehouses for which personnel at Costco’s Corporate Headquarters pay 

invoices from contractors, monitoring whether contractors have uploaded required 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page43 of 51
-3- 

leak repair data into the Verisae system prior to Costco’s payment of invoices for the 

associated work; 

 Uploading and maintaining the Verisae system inventory of regulated refrigeration 

equipment (RCS – Energy); 

 Monitoring the Verisae system to identify leaks that require repair, and notifying the 

appropriate Warehouse Refrigerant Representative if a leak is not repaired within 

seven (7) days in advance of the regulatory deadline (RCS – Energy); coordinating 

leak investigations and determining appropriate corrective actions (RCS – 

Purchasing); preparing written report regarding leak incidents (RCS – Purchasing); 

 Periodically compiling reports using data from the Verisae system in order to 

determine: 

 which twenty-five (25) warehouses have the highest refrigerant emissions; 

 which warehouses have had no refrigerant added to systems in the past twelve 

(12) months; 

 the average timeframe within which each independent contractor completes 

necessary repairs; and 

 which individual pieces of regulated refrigeration equipment were repaired 

more than three times in the previous twelve (12) months. 

(reports prepared by RCS – Energy and reviewed by RCS – Purchasing) 

 Monitoring the Verisae system for compliance issues related to refrigerant emissions, 

contractor performance, or chronically malfunctioning equipment and contacting the 

appropriate Warehouse Refrigerant Representative(s) or contractor to determine the 

cause of the problem and to design and implement necessary corrective actions (RCS 

– Purchasing); 

 Working with Costco’s Legal Department to coordinate the addition of any new 

requirements to this CMP (RCS – Energy and RCS – Purchasing); 

 Monitoring and updating employee training programs (RCS – Energy); 

 Ensuring Costco corporate personnel remain apprised of obligations under this 

Consent Decree (RCS – Purchasing). 

5. Costco Warehouse Managers 

Individual Costco warehouse managers are responsible for monitoring compliance with this 

CMP as well as applicable regulations. 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page44 of 51
-4- 

6. Independent Contractors 

Costco uses independent contractors to perform necessary refrigerant installation, maintenance, 

and repair work. Contractors shall provide Costco with only EPA-certified technicians, as 

discussed in Section F2 below. Contractors must properly use the Verisae system to report 

repairs of regulated refrigerant equipment or risk nonpayment of invoices. 

C. ACCOUNTABILITY AND RESPONSIBILITY 

1. Purpose 

To create procedures to help achieve company-wide compliance with this CMP. 

2. Internal Accountability

The RCSs are required to meet periodically (at least every six (6) months) with the Legal 

Department to report and address issues regarding company-wide compliance with this CMP, 

including identified amendments to environmental requirements and updates to employee 

training programs, as well as any identified noncompliance at individual warehouses. 

3. Third-Party Accountability

In order to foster accountability for third-party actions, Costco shall seek to hold individuals 

directly responsible for accurate leak reporting and repair, i.e., independent contractors, 

responsible for actions or failures to act that lead to assessment of civil and administrative 

penalties, and/or material violations of this CMP. 

D. ENVIRONMENTAL REQUIREMENTS 

1. Purpose 

To endeavor to ensure Costco remains apprised of any regulatory developments affecting this 

CMP and has procedures to update this CMP. 

2. Environmental Review

An attorney in Costco’s Legal Department shall be tasked with monitoring legislation and 

rulemaking activity regulated appliances and shall report new requirements to Warehouse 

Refrigerant Representatives and the RCSs as developed. The Costco Legal Department shall 

also work with the RCSs to incorporate new requirements into this CMP and shall distribute the 

updated document, along with a summary of regulatory changes, to employees at individual 

warehouse and corporate levels who are involved with the implementation of this CMP, as well 

as third-party contractors involved in the maintenance and repair of regulated refrigeration 

equipment. The RCS – Energy is also responsible for ensuring that training programs identified 

in Section H are updated to reflect changes in requirements. 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page45 of 51
-5- 

E. ASSESSMENT, PREVENTION AND CONTROL 

1. Purpose

To establish the following management practices (MPs) and evaluation procedures to seek to 

prevent or control reasonably foreseeable releases of refrigerants and minimize other risks of 

noncompliance with applicable refrigerant regulations. 

2. Management Practices 

The following MPs shall apply to Costco’s use of class II refrigerants, maintenance of regulated 

refrigeration equipment, and interactions between Costco and independent contractors that 

service Costco’s regulated refrigeration equipment: 

 No knowing release or venting of any regulated refrigerant to the atmosphere shall be 

made. 

 Costco’s regulated refrigerant use shall be managed pursuant to EPA regulations and 

any other applicable federal requirements, including recordkeeping and repair 

requirements in 40 C.F.R. Part 82, Subpart F. 

 Use, maintenance, repair, and replacement of all regulated refrigeration equipment 

shall also be conducted pursuant to the above-mentioned regulations. Any apparent 

violation of such regulations shall be investigated and reported pursuant to procedures 

outlined in Section F of this CMP. 

 All contractors responsible for maintenance and repair of regulated refrigeration 

equipment shall be certified according to EPA requirements in 40 C.F.R. § 82.161, 

and as discussed in more detail in Section F.2 below. 

3. Contractor Evaluations 

The RCS – Purchasing is responsible for facilitating evaluations of independent contractors’ 

compliance with applicable standards and regulations in at least five (5) warehouses randomly 

selected annually. All evaluation results shall be documented in a report to the appropriate 

Warehouse Refrigerant Representative, and the RCS – Purchasing shall further investigate any 

negative results to determine if corrective actions are necessary. The RCS – Purchasing is also 

responsible for initiating, with the assistance of the appropriate Warehouse Refrigerant 

Representative, evaluation of a contractor when Verisae system reports run pursuant to Section 

B.4, or other pertinent information, demonstrates the contractor’s frequent noncompliance with 

this CMP. 

4. Warehouse Audits 

Costco warehouse operations auditors will perform audits of all Costco warehouses subject to 

this CMP, in order to assess compliance with this CMP and all applicable federal refrigerant 

regulations. Costco shall audit each warehouse subject to this CMP annually. Each warehouse 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page46 of 51
-6- 

that is not audited within one year of the last audit shall be audited within the 90 days following 

the one-year anniversary of the prior audit. Auditors must ensure that each warehouse has 

identified personnel, including the Warehouse Refrigerant Representative, that are sufficiently 

trained to comply with the Warehouse Refrigerant Representative’s obligations as described in 

this CMP, and confirm that independent contractors are required to upload data to the Verisae

system prior to Costco’s payment of invoices for the associated work. Audit results shall be 

reported to the RCSs and the appropriate Warehouse Refrigerant Representative, and any reports 

of noncompliance shall be addressed according to the procedures identified in Section F. 

F. SYSTEM MAINTENANCE 

1. Purpose 

To detail which persons may perform refrigerant services and maintenance. 

2. Refrigerant Technicians 

EPA requires certification testing for any person conducting service, maintenance, repair, or 

recovery work on a refrigerant system. Costco requires that only certified technicians perform 

such activities. Technicians must have a certification card showing training in an EPA-approved 

program. In the event of an EPA inspection, technicians must be able to do the following: 

 Present their certification cards; 

 Recite the relevant recovery vacuum levels for the refrigerants currently in use; 

 State the leak trigger rates for the over 50 pound EPA equipment classifications; 

 Demonstrate the proper use of a refrigerant recovery system, confirm that leak tests are 

performed on recovery units, and properly calibrate gauges. 

G. LEAK REPAIR, INVESTIGATIONS, AND REPORTING 

1. Purpose 

To promptly address, investigate, and report leaks and to establish procedures relating to leaks. 

2. Leak Repair 

All regulated commercial refrigeration systems exhibiting an annual leak rate in excess of 35% 

and all regulated comfort cooling appliances exhibiting an annual leak rate in excess of 15% 

shall be repaired within 30 days of leak detection as required by EPA regulations. Repairs will 

be performed by certified technicians. A leak is considered to be repaired if the leak rate is 

reduced below the 35% threshold. Leak repairs must follow all EPA-approved procedures, 

including refrigerant evacuation and recovery/recycling, and verification. 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page47 of 51
-7- 

If a commercial refrigeration appliance with an annual leak rate in excess of 35% or a comfort 

cooling appliance with an annual leak rate in excess of 15% cannot be repaired within 30 days of 

leak detection, then the Warehouse Refrigerant Representative and RCS – Purchasing will 

determine appropriate actions. 

3. Leak Investigations 

Warehouse Refrigerant Representatives are required, upon request from an RCS, to investigate 

any incident of apparent non-compliance with applicable refrigerant regulations, such as failure 

to repair leaks in regulated refrigeration equipment within 30 days. The Warehouse Refrigerant 

Representative and RCS – Purchasing will coordinate an investigation to determine the root 

cause of the incident, corrective actions taken, and any recommended changes in procedures, 

policies, or personnel in order to minimize the risk of continued incidents, and the RCS – 

Purchasing will document same in a written report. Costco’s Legal Department will review each 

investigation report. Individual warehouse investigation reports will be considered cumulatively 

during annual audits. 

4. Leak Reporting 

Contractors shall record specific data regarding the equipment and repairs on Service Record 

forms and enter such information into the Verisae system as described in Section H, in order to 

track compliance with regulations, and equipment and contractor performance. 

H. RECORDKEEPING 

1. Purpose 

To comply with EPA regulations requiring owners and operators of refrigeration equipment 

containing Class II refrigerants to maintain records. EPA may request reports documenting 

refrigerant usage, service, maintenance, and disposal for the past three years. Costco’s CMP 

ensures compliance with these requirements by establishing record-keeping procedures through 

the use of the Verisae system. 

2. Leak Monitoring 

If a regulated refrigeration equipment leak is identified, the independent contractor shall enter the 

information into the Verisae system, including all of the information on the attached “Refrigerant 

Tracking Form 1C.” The Verisae system shall be the primary method for documenting leaks and 

repair events. If contractors provide hard-copy records to Costco regarding leaks and repair 

events, the Warehouse Refrigerant Representative shall keep such hard copies on-site 

indefinitely. 

3. General Monitoring 

Costco will also monitor its regulated refrigerant use and compliance with applicable regulations 

through the Verisae system. Records will be maintained for at least 3 years after the termination 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page48 of 51
-8- 

of the Consent Decree. Responsibilities regarding monitoring and maintenance of the Verisae

system are as follows: 

 Contractors are responsible for uploading data regarding equipment leaks and repairs 

to the Verisae system, to facilitate tracking of applicable leak rates and repair 

deadlines. It is Costco’s policy to withhold payment of contractor invoices until the 

contractor uploads the required data. 

 The RCS – Energy is responsible for uploading and accurately maintaining the 

Verisae system inventory of regulated refrigeration equipment, which includes 

comfort cooling, commercial refrigeration, industrial process refrigeration, and any 

other regulated refrigeration equipment. The inventory will include location and 

identification information for all regulated refrigeration equipment. The RCS – 

Energy is also responsible for uploading and accurately maintaining the Verisae 

system inventory regarding refrigerant types and quantities for each piece of 

regulated refrigeration equipment. 

 Warehouse Refrigerant Representatives shall endeavor to ensure that contractors 

understand and comply with Verisae system data-entry requirements, and must 

monitor all Verisae system data entries and address upcoming repair deadlines noted 

in the Verisae system. 

 The RCS – Energy is responsible for notifying individual warehouses of leaks 

identified in the Verisae system that are not repaired within seven (7) days before the 

regulatory deadline. 

 The RCS – Purchasing will work with contractors and the Warehouse Refrigerant 

Representative to address and effectuate such repairs prior to the regulatory deadline. 

 The RCS – Energy is responsible for running various system-wide reports described 

above in Section B.2 in order to monitor warehouse, contractor and equipment 

performance. 

 Warehouse Refrigerant Representatives and the RCSs are responsible for 

understanding how to access and interpret the Verisae system, and how to design and 

run necessary reports. 

I. TRAINING 

1. Purpose 

To develop training programs for employees and ensure that all relevant personnel are properly 

trained to implement the requirements of this CMP. 

2. Available Training

Costco will develop and implement training programs as follows: 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page49 of 51
-9- 

 Refrigerant Tracking (Verisae) 

 Legal Requirements for Managing Refrigeration 

Individual training records shall be maintained and examined as part of the contractor 

evaluations and warehouse audits described in Section E. 

The RCSs shall be responsible for revising training programs to address regulatory changes, as 

described in Section D, as well as personnel and compliance issues identified through individual 

evaluations, audits, and incident investigations. 

J. ENVIRONMENTAL PLANNING AND ORGANIZATIONAL 

DECISION-MAKING 

1. Purpose 

To accomplish integration of environmental considerations with Costco’s larger corporate 

governance process. 

2. Corporate Environmental Planning 

Environmental planning related to this CMP and Costco’s compliance with applicable refrigerant 

management regulations shall, where practicable, be integrated into Costco’s overall corporate 

decision-making process. For example, the RCS – Purchasing must ensure that corporate 

personnel responsible for capital improvements are aware of Costco’s obligations under this 

CMP, the applicable regulations, and any applicable agreements or consent decrees, as well as 

specific information related to Costco’s use of regulated refrigerants, including cost and phaseout dates. 

K. PROGRAM EVALUATION 

1. Purpose 

To develop procedures for evaluating and improving this CMP. 

2. Evaluation Requirements

In order to ensure that Costco’s implementation of this CMP is effectively achieving stated 

goals, the RCSs will communicate with Warehouse Refrigerant Representatives to evaluate 

implementation of this CMP and discuss and adopt improvements to address identified 

weaknesses in the program. 

 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page50 of 51
-10- 

L. APPLICABLE FEDERAL RULES AND REGULATIONS 

1. Purpose 

To identify relevant federal regulations applicable to refrigerant systems. 

2. 40 C.F.R. Part 82

40 C.F.R Part 82 governs the use of ozone-depleting substances and therefore applies to the use 

of refrigerants. The primary requirements of 40 C.F.R Part 82 are: 

 To maximize recycling of ozone-depleting compounds, such as CFCs and HCFCs 

during the servicing and disposal of refrigeration equipment. 

 To prohibit any knowing releases of refrigerants during maintenance, service, repair, 

or disposal. 

 To set certification requirements for the recovery and recycling of refrigeration 

equipment. 

 To ensure that refrigerants are sold only to certified technicians and appliance 

manufacturers. 

 To require persons repairing or disposing of refrigeration equipment to certify to EPA 

that they have complied with the requirements of the rule. 

 To repair any regulated commercial refrigeration system with an annual leak rate in 

excess of 35%, and any regulated comfort cooling appliance with an annual leak rate 

in excess of 15%, within 30 days of leak detection as required by EPA regulations. 

 To establish safe disposal practices for refrigerants. 

 To set certification requirements for technicians and reclaimers. 

Case3:14-cv-03989 Document2-1 Filed09/03/14 Page51 of 51