Grocery store chain fined for refrigerant leaks; ordered to cut greenhouse gases

Trader Joe’s is cleaning up its act — with regards to the environment.



In a proposed settlement with the U.S. Department of Justice and the EPA, the chain agreed to spend $2 million over the next three years to reduce coolant leaks from refrigerator equipment at its 460 stores nationwide, and also to pay a $500,000 related civil penalty.



The federal agencies allege that Trader Joe’s violated the Clean Air Act by failing to promptly repair leaks of R-22, an ozone-depleting hydro-chlorofluorocarbon (HCFC) substance and powerful greenhouse gas that is used as a coolant in refrigerators. They also said the retailer did not keep adequate servicing records of its refrigeration equipment and did not provide information about its compliance record.



As part of the settlement, Trader Joe’s will implement a corporate refrigerant compliance management system to comply with federal regulations and to detect and repair leaks through a new quarterly leak monitoring program. It has agreed to achieve and maintain an annual corporate-wide average leak rate of 12.1% through 2019, below the supermarket industry average of 25%.



In addition, Trader Joe’s must use non-ozone depleting refrigerants at all new stores and major remodels’ and at least 15 of these stores must use advanced refrigerants, such as carbon dioxide. These advanced coolants have much less global warming potential compared to typical refrigerants.



Regulators said the settlement is expected to prevent the release of approximately 31,000 metric tons of carbon-equivalent greenhouse gases, which is equal to the amount generated by more than 6,500 cars each year.



Trader Joe’s did not admit liability in agreeing to settle the issue.



"Trader Joe's looks forward to working with the EPA in its mission to reduce air pollution and protect the ozone layer, and, with this agreement, has committed to reducing its emissions to a rate that matches the best of the industry,” the company stated in a release.



Trader Joe's is the third supermarket chain to face concerns about refrigerant leaks. Previous cases have been filed against Safeway and Costco Wholesale for similar leaks of ozone-depleting refrigerants.



For a story on detecting refrigerant leaks, click here.