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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. ) )

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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

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iii CONSENT DECREE XIX. TERMINATION ....................................................................................................23

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

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

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

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

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

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1 CONSENT DECREE WHEREAS, Plaintiff, the United States of America, on behalf of the United States Environmental Protection Agency (“EPA”), has f iled a Complaint in this action concurrently with this Consent Decree, alleging that Defenda nt, Costco Wholesale Co rporation (“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 Appendi x 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 cont aining more than 50 pounds of refrigerant that includes a class I or class II ozone-depleting s ubstance, and EPA subsequently narrowed such request to cover 45 Warehouses in Calif ornia, Arizona, Nevada, and Hawaii; WHEREAS, on January 17, 2008, and March 11, 2008, Costco submitted its responses to EPA’s information request, including approxi mately 25,000 pages of equipment records; WHEREAS, the allegations in the Compla int are based on EPA’s analysis of the
information contained in Costco’s re sponses to EPA’s information request; WHEREAS, according to the data in Cost co’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 J une 20, 2014, Costco retr ofitted all Covered Appliances at 32 Warehouses to use Non-ODS Refrigerant; WHEREAS, Costco denies liabil ity to the United States arisin g out of the transactions or occurrences alleged in the Complaint; WHEREAS, the Parties rec ognize, and the Court by enteri ng this Consent Decree finds,
that this Consent Decree has b een negotiated by the Parties in good faith and will avoid litigation
between the Parties and that this Consent Decree is fair, reasonab le, and in the public interest;

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2 CONSENT DECREE NOW, THEREFORE, before the taking of a ny testimony, without the adjudication of or admission of any issue of fact or law except as pr ovided 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 subj ect 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 cond ucts business in, this ju dicial district. For purposes of this Decree, or any action to enforce this Decree, Co stco consents to the Court’s jurisdiction over this Decree and an y such action and over Costco and consents to venue in this
district.
2. The United States has given notice of th e 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, assi gns, or other entities or persons otherwise bound by law.
4. At least 30 days prior to any transfer of ownership or opera tion 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 sh all provide written notice of the prospective transfer, together with a copy of the proposed written agreement, to the United States Department of Justice, in accord ance with Section XV of this D ecree (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 a ttempt to transfer owners hip or operation of a

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3 CONSENT DECREE Warehouse without complying with this Paragrap h constitutes a viola tion of this Decree.
5. Costco shall provide a copy of this Cons ent Decree to all officers and managers whose duties materially include complianc e with any provision of this Decree.

6. In any action to enforce this Consent Decr ee, Costco shall not raise as a defense the failure by any of its officers, directors, empl oyees, agents, or contractors to take any actions necessary to comply with the prov isions 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 EP A’s commercial refrigerant repair and recordkeeping regulations at 40 C.F.R. Part 82, Subpa rt F, and (b) to resolv e 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 m eanings assigned to them in the Act or such regulations as of the date of l odging of this Decree, unless otherw ise 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 whic h is used for household or commercial purposes, including any air conditioner, re frigerator, 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 Wa rehouse 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 “Decr ee” shall mean this Decree and all appendices attached hereto (listed in Section XXIV);

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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 al l Covered Appliances at all Warehouses during such calendar year (not including the initial ch arge of Refrigerant added to any new Covered Appliance) divided by the total Full Charge of all Covered App liances at all Warehouses during such calendar year. For purposes of this subparagraph, the “total number of pounds of Refrigerant added to all Covere d Appliances” shall not includ e (i) the initial charge of Refrigerant added to any new Covered Appliance; (ii) where Refrigerant has been recovered from an existing Covered Appliance in complia nce 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 Refrig erant 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 purpos es of this subparagraph, the “total Full Charge of all Covere d Appliances” shall include the Fu ll Charge of any appliance that was at one time a Covered Appliance and that, afte r January 1, 2013, has been retrofitted to use, or replaced by an appliance that uses, refrigerant th at does not consist in part or whole of a class I or class II ozone-depleting substance;

g. “Covered Appliance” shall mean a co mmercial 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 ne xt business day;
i. “Effective Date” shall have the de finition 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 characte ristics and conditions of the Appliance as determined by using one or a combination of the following four methods:

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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 Refrig erant, 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 th e 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 wher e 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 1 00-year time horizon compared to the same mass of carbon dioxide, as determined pursuant to IP CC, 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, circ ulating between the prim ary fluid loop and the refrigerator or chiller, contains propylene glycol and not Refriger ant 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 oz one-depleting substance that is used for heat transfer purposes and provides a cooling effect;

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6 CONSENT DECREE r. “Refrigerant Compliance Management Pl an” 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 membersh ip warehouse in the United States owned or operated by Costco with one or mo re 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 w ith 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 511

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7 CONSENT DECREE on behalf of Costco. Costco may change the in dividual to receive payment instructions on their behalf by providing written notice of such chan ge 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 Ki ng Drive, Cincinnati, OH 45268; and (ii) to the United States via email or regular mail in acco rdance with Section XV. Such notice shall
reference the CDCS Number a nd DOJ case number 90-5-2-1-09643.
11. Costco shall not deduct any penalties pa id under this Decree pursuant to this Section or Section IX (Stipul ated Penalties) in calculating its federal income tax. VI. COMPLIANCE REQUIREMENTS A. Refrigerant Compliance Management Plan
12. Starting no later than 30 days after the E ffective 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 revise d Refrigerant Compliance Management Plan to EPA along with a letter identifyi ng the amendments or changes. Costco shall implement its amended or changed Refrigerant Compliance Ma nagement Plan unless and until EPA notifies Costco in writing that it declines to approve su ch amendments or changes and provides written comments. Within 30 days of receiving EPA’s writ ten notification, Costco sh all either (i) revise the Refrigerant Compliance Management Plan consistent with EPA’s written comments and submit the revised Refrigerant Compliance Manage ment 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 Aver age 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 511

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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 spec ified 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 cale ndar year for which Costco failed to achieve the Corporate-Wide Average Leak Rate se t forth in Paragraph 14, Costco shall submit to EPA a proposed Corrective Action Plan and sh all implement the proposed Corrective Action
Plan in accordance with the sc hedule set forth therein. The proposed Corrective Action Plan shall include (i) a descrip tion of all actions taken or to be ta ken to seek to ensure that Costco achieves the Corporate-Wide Average Leak Rate se t 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 comment s 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 Corporat e-Wide Average Leak Rate set forth in Paragraph 14(c) for the third calendar year after th e 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 ye ar after the year of the Effective Date, Costco shall submit to EPA a proposed Co rrective Action Plan a nd shall implement the

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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 a ll actions taken or to be taken to seek to ensure that Costco achieves a Corporate-Wide Av erage Leak Rate that is at or below 19.1% for the fourth calendar year after the year of the Effective Date; and (i i) 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 su ch 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 Covere d 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 Appl iances to use Non-ODS Refrigerant with a Global Warmi ng 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 afte r year of Effective Date 10 End of second calendar year afte r year of Effective Date 20 End of third calendar year afte r year of Effective Date 30 Case3:14-cv-03989 Document2-1 Filed09/03/14 Page12 of 511

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10 CONSENT DECREE Costco shall have sole discreti on to select the Warehouses at wh ich 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 wi ll be retrofitted or replaced, Costco shall consider, inter alia , the Warehouses’ history of Refriger ant leaks and potential for future Refrigerant leaks absent the retr ofit or replacement. Warehouses at which Costco has retrofitted or replaced all Covered Applian ces 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 me dium-temperature Covered Appliances at all one-story Warehouses opened during the three ca lendar years after the y ear 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 w ill 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 Refrigerati on System would use at that Warehouse.
20. Centrally Monitored Refriger ant Leak Detection Systems . Costco shall install Centrally Monitored Refrigerant Leak Detect ion Systems according to the manufacturer’s specifications at all Warehouses opened during th e three calendar years af ter the year of the
Effective Date.
VII. PARTICIPATION IN RECOGNITION PROGRAMS
21. Costco shall not seek warehouse certificat ion from, or partners hip in, any federal or state recognition program relating to ozone-depleting substances, including EPA’s GreenChill Advanced Refrigeration Partnership, until termina tion of this Consent Decree. This Paragraph shall not be construed to prohibi t Costco’s exchange of data or information with or through any

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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 Cons ent 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 Complian ce 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 C onsent Decree, including a description of the Warehouses’ history (over the prio r calendar year) of Refrigerant leaks and potential for future Refrigerant leaks absent th e retrofit or replacement;

c. a description of all refrigeration systems and leak detection systems
installed at each Wa rehouse 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 Refriger ant added to all C overed Appliances at all Warehouses;
h. a certification that Costco has comp lied 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 othe rwise complied with the Refrigerant Compliance Management Plan; and

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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 pr ior 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 th e requirements of Section XV of this Consent Decree, Costco shall submit each Complian ce 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 in clude the following certification:
I certify under penalty of law that this document a nd all attachments were prepared under my direction or supervis ion in accordance with a system designed to assure that qualified personnel proper ly 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 gather ing the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there ar e significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.

26. Whenever any violation of this Consen t Decree or any other event affecting Costco’s performance under this Decree, or th e performance of its Warehouses, may pose an immediate threat to the public he alth or welfare or the enviro nment, 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 ev ent. This procedure is in addition to the requirements set forth in Paragraphs 23 through 25.
27. The reporting requirements of this Consen t Decree do not relieve Costco of any reporting obligations required by the Clean Air Act or implementi ng regulations, or by any other federal, state, or local law, regul ation, 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 th e provisions of this Consent Decree and as otherwise permitted by law.
IX. STIPULATED PENALTIES
29. Costco shall be liable for stipulated penalt ies to the United States for violations of Case3:14-cv-03989 Document2-1 Filed09/03/14 Page15 of 511

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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 th e civil penalty required to be paid under Section V of this Decree (Civil Pe nalty) 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 $50 0 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 L eak Rate for a calendar year as set forth in Paragraph 14, Costco shall pay s tipulated 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 Corpor ate-Wide Average Leak Rate set forth in Paragraph 14(c) for the third cal endar 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 pur suant 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 Applia nces at existing Warehouses as required by Paragraph 18, Costco shall pay a st ipulated 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 Glyc ol 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

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14 CONSENT DECREE installation is completed. Such penalty shall begin to accrue on the da y after the date the Warehouse opens to the public.
b. For each failure to install a Ce ntrally 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 da te 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 th e 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 Secti on shall begin to accrue on the day after performance is due or on the day a violation occurs, whichever is applicab le, and shall continue to accrue until performance is satisfactorily comple ted or until the violation ceases. Stipulated penalties shall accrue simultaneously for sepa rate 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 penalt ies 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 agreemen t or by a decision of EPA that is not appealed to the Court, Costco shall pay accrued pe nalties 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 Co urt and the United States prevails in whole or in part, Costco sha ll pay all accrued penalties determ ined 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 Co urt’s decision, Costco shall pay all Case3:14-cv-03989 Document2-1 Filed09/03/14 Page17 of 511

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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 owi ng to the United States in the manner set forth and with the confirmation notices requi red by Paragraph 10, except that the transmittal letter shall state that the payment is for stipulat ed penalties and shall stat e for which violation(s) the penalties are being paid.
41. If Costco fails to pay stipulated penal ties 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. Noth ing in this Paragraph shall be construed to
limit the United States from seeking any remedy otherwise pr ovided by law for Costco’s failure to pay any stipulated penalties.
42. Subject to the provisions of Section X III of this Consent Decree (Effect of Settlement/Reservation of Rights), th e stipulated penalties provided fo r 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 appl icable law. Costco reserves its rights to contest any such additional actions taken by the Unite d States against Costco. Wher e 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 statutor y penalties imposed for
such violation.
X. FORCE MAJEURE
43. “Force majeure,” for purposes of this C onsent Decree, is defined as any event arising from causes beyond the control of Cost co, of any entity controlled by Costco, or of Costco’s contractors, that impedes – i.e., delays or prevents – the perf ormance 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 ob ligation” includes using best efforts to anticipate any potential force majeure event and best efforts to address the effects of a ny such event (a) as it is occurring and (b) after it has occurred to se ek to prevent or minimize any resulting impedance to the greatest extent possible. “Force Majeure” does not include Costco’s financial inability to

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16 CONSENT DECREE perform any obligation unde r this Consent Decree.
44. If any event occurs or has occurred th at may impede the performance of any obligation under this Consent D ecree, whether or not caused by a force majeure event, Costco shall provide notice orally or by electronic or fa csimile transmission to EPA, within seven days
of when Costco first knew that the even t 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 impedan ce; all actions taken or to be taken to prevent or minimize the impedance; a schedule for impl ementation 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 even t if it intends to assert such a claim; and a statement as to whether, in the opinion of Co stco, such event may cause or contribute to an endangerment to public health, welf are or the environment. Costco shall include with any notice all available documentation supportin g the claim that the impedance was attributable to a force majeure. Failure to comply with the above re quirements shall preclude Costco from asserting any claim of force majeure for that event for the pe riod of time of such fa ilure 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 contro lled by Costco, or Costco’s contractors knew or
should have known.
45. If EPA agrees that the impedance or anti cipated 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 maje ure event for such time as is necessary to complete those obligations and/or reduce or waiv e stipulated penalties otherwise due under this
Decree as a result of Costco’s fa ilure to perform such obligations . An extension of the time for performance of the obligations a ffected by the force majeure event shall not, of itself, extend the time for performance of any other obligation. EP A will notify Costco in writing of its decision, including the length of any exte nsion for performance of the ob ligations 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 511

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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 reso lution 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 burde n of demonstrating by a preponderance of the evidence that the impedance or anticipated impe dance has been or will be caused by a force majeure event, that the duration of the impedan ce or the relief sought was or will be warranted under the circumstances, that best efforts were ex ercised 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 i ssue shall be deemed not to be a violation by Costco of the affected obligation of this C onsent 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 Sec tion shall be the exclusive mechan ism to resolve disputes arising under or with respect to this Consent Decree. Co stco’s failure to seek resolution of a dispute under this Section shall pr eclude Costco from raising any such issue as a defense to an action by the United States to enforce any obligati on of Costco arisi ng 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 bi nding unless, within 20 days after the conclusi on of the informal negotiation peri od, Costco invokes formal dispute resolution procedures as set forth below.
50. Formal Dispute Resolution

. Costco shall invoke form al dispute resolution procedures, within the time period provided in the preceding Paragraph, by serving on the United States a written Statement of Position regarding th e matter in dispute. The Statement of Position

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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 Po sition shall include, but need not be limited to, any factual data, analys is, or opinion supporting that position and any supporting documentation relied upon by the Unit ed States. The position advanced by the United States shall be binding on Costco, unless Cost co files a motion for j udicial 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 S ection 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 stat ement of Costco’s position on th e matter in dispute, including any supporting factual data, analysis, opinion, or documentation, and shall set forth the relief requested and any schedule within which th e dispute must be resolved for orderly implementation of the Consent Decree.
53. The United States shall respond to Cost co’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 burde n of demonstrating that its position complies with this Cons ent Decree and that it is enti tled to relief under applicable principles of law. In their initial filings w ith the Court under Paragraphs 52 and 53, the Parties shall state their respective positions as to the appl icable standard of law for resolving the dispute.
55. The invocation of dispute resolution pro cedures under this S ection shall not, by itself, extend, postpone, or affect in any way a ny obligation of Costco under this Consent Decree, unless and until final resolution of the dispute so pr ovides. Stipulated penalties with respect to the disputed matter shall continue to accrue fr om the first day of nonc ompliance, but payment

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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 penal ties shall be assessed and paid as provided in Section IX (Stipulated Penalties).
XII. INFORMATION CO LLECTION AND RETENTION
56. The United States and its representatives, including attorneys, contractors, and consultants, shall have the righ t of entry into any Warehouse cove red by this Consent Decree, at all reasonable times, upon presen tation 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, includi ng 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 pr eserve, all non-identical co pies 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 demons trate Costco’s performance of its obligations under this Consent Decree. This information-retention requirement shall apply regardless of any contrary corpor ate or institutional policies or pr ocedures. At any time during this information-retention period, upon written re quest by the United States, Costco shall within 30 days provide copies of any documents, reco rds, or other information required to be maintained under this Paragraph.
58. At the conclusion of the information-re tention 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, Cost co shall within 30 days deliver any such nonprivileged documents, records, or other informa tion to EPA. Costco may assert that certain documents, records, or other information is priv ileged under the attorney-client privilege or any

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20 CONSENT DECREE other privilege recognized by federal law. If Co stco 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 th e document, record, or information; (4) the name and title of each addr essee and recipient; (5 ) a description of the subject of the document, record, or informati on; and (6) the privileg e asserted by Costco. However, no documents, records, or other info rmation 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 re quired to be maintained or provided to
the United States under this Consent Decree is protected as Confidentia l Business Information (“CBI”) under 40 C.F.R. Part 2. As to any info rmation 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 a ffects any right of entry and inspection, or any right to obtain information, held by the Unite d States pursuant to a pplicable federal laws, regulations, or permits, nor does it limit or affect any duty or obligation of Costco to maintain documents, records, or other information im posed by applicable federal or state laws, regulations, or permits.
XIII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS
61. This Consent Decree resolves the civil clai ms of the United Stat es 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 occu rred prior to the date of lodging, in cluding 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 specif ied in Paragraph 61.
63. In any subsequent administ rative or judicial proceed ing initiated by the United States for injunctive relief, civil penalties, or other appropriate relief relating to the Warehouses,

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21 CONSENT DECREE Costco shall not assert, and may not maintain, a ny defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issu e preclusion, claim preclusion, claim-splitting, or other defenses based upon any c ontention 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 Decr ee 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 Cons ent 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 thei r own costs of this action, including atto rney’s fees, except that the United States sha ll be entitled to collect the cost s (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, when ever notifications, submissions, or communications are required by this Consent D ecree, they shall be made in writing and

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22 CONSENT DECREE addressed as follows:
To the United States :
Chief, Environmental Enforcement Section Environment and Natura l 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

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23 CONSENT DECREE recipient or notice a ddress provided above.
70. Notices submitted pursuant to this S ection shall be deemed submitted upon mailing or electronic mailing, as applicable, unless otherwise provided in th is Consent Decree or by mutual agreement of the Parties in writing.
XVI. EFFECTIVE DATE
71. The Effective Date of this Consent D ecree 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 th is 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, incl uding 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 modi fication of this Decree shall be resolved pursuant to Section XI of this Decree (Dispute Resolution), provided, however, that, in stead of the burden of proof provided by Paragraph 54, the Party seek ing 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 requir ements 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,

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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 Re quest 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 Resolu tion under Section XI of this D ecree. However, Costco shall not seek Dispute Resolution of any dispute rega rding termination, under Pa ragraph 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 cons ent if the comments regarding the Consent
Decree disclose facts or considerations indica ting that the Consent D ecree is inappropriate, improper, or inadequate. Costco consents to en try of this Consent Decr ee without further notice and agrees not to withdraw from or oppose entr y of this Consent Decree by the Court or to challenge any provision of the D ecree, 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 A ttorney General for
the Environment and Natural Resources Division of the Department of Justice certifies that he or she is fully authorized to ente r into the terms and conditions of this Consent Decree and to execute and legally bind th e Party he or she represents to this document.
80. This Consent Decree may be signed in count erparts, and its validity shall not be challenged on that basis. Costco agrees to ac cept service of process by mail with respect to all matters arising under or relati ng to this Consent Decree and to waive the formal service requirements set forth in Rules 4 and 5 of th e Federal Rules of Civil Procedure and any

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25 CONSENT DECREE applicable Local Rules of this Court includi ng, 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 understand ings, whether oral or written, concerning the
settlement embodied herein. Other than deliv erables 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 us ed in construing the terms of this Decree.
XXIII. FINAL JUDGMENT
82. Upon approval and entry of this Consen t Decree by the Court, this Consent Decree shall constitute a final judgment of th e 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 511 THE UNDERSIGNED PARTIES enter into this Consent Decree in the matter of United States v.

Costco Wholesale Corporation (N.D. Cal.): 2 3 FOR PLAINTIFF UNITED STATES OF AMERICA:

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6 SAM HIRSC

~ Acting Assistant Attorney General Environment and Natural Resources Division

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~ ,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

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26 CONSENT DECREE

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

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

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‐ 1 CONSENT DECREE Case3:14-cv-03989 Document2-1 Filed09/03/14 Page34 of 51Appendix 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

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‐ 2 CONSENT DECREE Case3:14-cv-03989 Document2-1 Filed09/03/14 Page35 of 51Appendix 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

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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

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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

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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

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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

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‐ 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 clas s 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 dispos al 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 refriger ation equipment. This CMP app lies 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 wor kplace and complying with all environmental regulatory requirements. Costco does not currently use class I refr igerants. Costco shall, in compliance with the policies and procedures se t forth in this CMP, implement management practices related to use of refrigerants and ma intenance 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 implem enting the policies and procedures in this CMP and to describe the responsibilities of personne l responsible for implementing this CMP, and to preserve warehouse autonomy while maintaini ng company-wide consistency by allowing for corporate oversight and ve rification of compliance.


### 2. General Organizational Structure Costco employees at the individu al 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 th e Warehouse Refrigerant Representatives and the Refrigerant Compliance Supervisors. Specific re sponsibilities are described in the subsections below. Costco uses the Verisae data management system ( Verisae system ), an electronic data management system, to track information asso ciated with its refrigerant systems at all warehouses that use regulated refrigerant equipmen t in the United States. This system will be utilized by Costco employees, as discu ssed below, to implement this CMP.

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### 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 contra ctor 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 Superv isors (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 contractor s, monitoring whether contractors have uploaded required leak re pair 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 refr igeration 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 overs eeing individual warehouse and contractor compliance with this CMP as well as coordina ting 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 no tice to EPA (RCS – Purchasing);

 For those Warehouses for which personnel at Costco’s Corporate Headquarters pay invoices from contractors, monitoring wh ether 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 Representati ve if a leak is not repaired within seven (7) days in advance of the regula tory deadline (RCS – Energy); coordinating leak investigations and determining appropriate correctiv e actions (RCS – Purchasing); preparing written report rega rding 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 e ach independent contractor completes necessary repairs; and

 which individual pieces of regulated re frigeration equipment were repaired more than three times in the previous twelve (12) months. (reports prepared by RCS – Energy a nd reviewed by RCS – Purchasing)

 Monitoring the Verisae system for compliance issues re lated to refrigerant emissions, contractor performance, or chronically malfunctioning equipment and contacting the appropriate Warehouse Refrigerant Representa tive(s) or contractor to determine the cause of the problem and to design and im plement necessary corre ctive 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 trai ning 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.

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### 6. Independent Contractors Costco uses independent contract ors to perform necessary refrige rant installation, maintenance, and repair work. Contractors shall provide Co stco with only EPA-certif ied technicians, as discussed in Section F2 below. Contractors must properly use the Verisae system to report repairs of regulated refrigerant equi pment or risk nonpayment of invoices. 

## C. ACCOUNTABILITY AND RESPONSIBILITY

1. Purpose To create procedures to help achieve co mpany-wide compliance with this CMP.


### 2. Internal Accountability The RCSs are required to meet periodically (a t least every six (6) months) with the Legal Department to report and address issues regard ing company-wide compliance with this CMP, including identified amendments to environmental requirements and updates to employee training programs, as well as any identifie d noncompliance at individual warehouses.


### 3. Third-Party Accountability In order to foster accountability for third-part y actions, Costco shall seek to hold individuals directly responsible for accura te leak reporting and repair, i.e. , independent contractors, responsible for actions or failure s to act that lead to assessme nt of civil and administrative penalties, and/or material vi olations of this CMP. 

## D. ENVIRONMENTAL REQUIREMENTS

1. Purpose To endeavor to ensure Costco remains apprised of any regulatory develo pments affecting this CMP and has procedures to update this CMP.


### 2. Environmental Review An attorney in Costco’s Legal Department sha ll be tasked with monitoring legislation and rulemaking activity regulated appliances and shall report new requirements to Warehouse Refrigerant Representatives and the RCSs as de veloped. 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 invol ved in the maintenance and repa ir 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.

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## E. ASSESSMENT, PREVENTION AND CONTROL

1. Purpose To establish the following management practices ( MPs ) and evaluation procedures to seek to prevent or control reasonably fo reseeable releases of refrigeran ts 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 betw een Costco and independe nt 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 fede ral 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 re ported pursuant to procedures outlined in Section F of this CMP.

 All contractors responsible for maintenan ce 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 facilita ting evaluations of inde pendent contractors’ compliance with applicable standards and regulat ions 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, w ith the assistance of the appr opriate 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 th is 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 Refr igerant Representative, that are sufficiently trained to comply with the Wa rehouse Refrigerant Representative’ s obligations as described in this CMP, and confirm that independent cont ractors are required to upload data to the Verisae system prior to Costco’s payment of invoices fo r the associated work. Audit results shall be reported to the RCSs and the appropriate Warehous e Refrigerant Representative, and any reports of noncompliance shall be addressed according to the procedures iden tified in Section F. 

## F. SYSTEM MAINTENANCE

1. Purpose To detail which persons may perform re frigerant services and maintenance.


### 2. Refrigerant Technicians EPA requires certification testi ng for any person conducting service, maintenance, repair, or recovery work on a refrigerant system. Costco requires that only certif ied technicians perform such activities. Technicians must have a certif ication card showing training in an EPA-approved program. In the event of an EPA inspection, t echnicians 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 ov er 50 pound EPA equipment classifications;

 Demonstrate the proper use of a refrigerant r ecovery system, confirm that leak tests are performed on recovery units, a nd properly calibrate gauges. 

## G. LEAK REPAIR, INVESTIGATIONS, AND REPORTING

1. Purpose To promptly address, investigate, and report leak s and to establish proced ures relating to leaks.


### 2. Leak Repair All regulated commercial refrigera tion systems exhibiting an annual leak rate in excess of 35% and all regulated comfort cooling appliances e xhibiting an annual leak rate in excess of 15% shall be repaired within 30 days of leak dete ction 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 repa irs 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 app liance with an annual leak rate in excess of 35% or a comfort cooling appliance with an annual leak rate in ex cess of 15% cannot be repa ired within 30 days of leak detection, then the Warehouse Refrigeran t Representative and RCS – Purchasing will determine appropriate actions.


### 3. Leak Investigations Warehouse Refrigerant Representatives are requi red, upon request from an RCS, to investigate any incident of apparent non-compliance with app licable refrigerant regula tions, such as failure to repair leaks in regulated refrigeration equi pment within 30 days. The Warehouse Refrigerant Representative and RCS – Purchasing will coordi nate an investigation to determine the root cause of the incident, corrective actions take n, 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. In dividual warehouse investigation report s will be considered cumulatively during annual audits.


### 4. Leak Reporting Contractors shall record specifi c 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 e quipment and contractor performance. 

## H. RECORDKEEPING

1. Purpose To comply with EPA regulations requiring owne rs and operators of refrigeration equipment containing Class II refrigerants to maintain records. EPA may request reports documenting refrigerant usage, service, maintenance, and disp osal for the past three years. Costco’s CMP ensures compliance with these requirements by establishing record-keep ing procedures through the use of the Verisae system. 

### 2. Leak Monitoring If a regulated refrigeration equipment leak is id entified, the independent c ontractor 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 Cost co regarding leaks and repair events, the Warehouse Refrigerant Representati ve shall keep such hard copies on-site indefinitely.


### 3. General Monitoring Costco will also monitor its regulated refrigeran t use and compliance with applicable regulations through the Verisae system. Records will be maintained fo r 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 re garding monitoring a nd maintenance of the Verisae system are as follows:

 Contractors are responsible for uploading da ta regarding equipmen t leaks and repairs to the Verisae system, to facilitate tracking of applicable leak rates and repair deadlines. It is Costco’s policy to wit hhold payment of contra ctor invoices until the contractor uploads the required data.

 The RCS – Energy is responsible for uploading and accurately maintaining the Verisae system inventory of regulated refr igeration equipment, which includes comfort cooling, commercial refrigeration, i ndustrial process refrigeration, and any other regulated refrigeration equipment. The inventory will include location and identification information for all regulate d refrigeration equipment. The RCS – Energy is also responsible for uploa ding 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 no tifying individual warehouses of leaks identified in the Verisae system that are not repaired w ithin seven (7) days before the regulatory deadline.

 The RCS – Purchasing will work with c ontractors and the Warehouse Refrigerant Representative to address and effectuate such repairs prior to the regulatory deadline.

 The RCS – Energy is responsible for runni ng various system-wide reports described above in Section B.2 in order to monitor warehouse, contractor and equipment performance.

 Warehouse Refrigerant Representative s 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 sha ll be maintained and examined as part of the contractor evaluations and warehouse audits described in Section E. The RCSs shall be responsible for revising traini ng programs to address regulatory changes, as described in Section D, as well as personnel a nd compliance issues iden tified through individual evaluations, audits, and in cident investigations. 

## J. ENVIRONMENTAL PLANNING AND ORGANIZATIONAL DECISION-MAKING

1. Purpose To accomplish integration of environmental cons iderations 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, wh ere 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 ar e aware of Costco’s obl igations under this CMP, the applicable regulations, and any applicab le 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 implementati on 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.

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## 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 substa nces and therefore applies to the use of refrigerants. The primary requ irements 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 refriger ants during maintenance, service, repair, or disposal.

 To set certification requirements for the recovery and recyclin g 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 comme rcial refrigeration system w ith an annual leak rate in excess of 35%, and any regulated comfort coo ling 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