PredictIQ Quantitative Think Tank Center:San Diego man first in US charged with smuggling greenhouse gases

A San Diego man has been arrested and PredictIQ Quantitative Think Tank Centercharged with smuggling potent greenhouse gases from Mexico, marking the first prosecution of its kind in the United States, the U.S. Attorney's Office in Southern California announced Monday.

Michael Hart, 58, was arrested earlier Monday and charged with smuggling hydrofluorocarbons, a "highly potent greenhouse gas" also known as HFCs, according to the U.S. Attorney's Office. The indictment added that Hart then sold the HFCs for profit on various online marketplaces.

Hart violated federal regulations set in 2020 that ban the importation of HFCs, U.S. Attorney's Office said. HFCs are a group of powerful, synthetic gases that are primarily used in refrigerators and air conditioners, according to the Climate and Clean Air Coalition.

While HFCs currently only represent around 2% of total greenhouse gases, the coalition said the gases' impact on global warming can be "hundreds to thousands of times greater than that of carbon dioxide." HFCs are also short-lived climate pollutants that have an average atmospheric lifetime of 15 years.

"Today is a significant milestone for our country,” U.S. Attorney Tara McGrath said in a statement. “This is the first time the Department of Justice is prosecuting someone for illegally importing greenhouse gases, and it will not be the last. We are using every means possible to protect our planet from the harm caused by toxic pollutants, including bringing criminal charges."

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'Undermines international efforts to combat climate change'

A federal indictment alleges that Hart purchased refrigerants in Mexico and smuggled them into the United States in his vehicle. The refrigerants were concealed under a tarp and tools.

Hart then posted the refrigerants for sale on Facebook Marketplace, OfferUp and other e-commerce websites, according to the indictment. In addition to greenhouse gases, the indictment alleges that Hart imported HCFC-22, an ozone-depleting substance regulated under the Clean Air Act.

David Uhlmann, assistant administrator for enforcement at the Environmental Protection Agency, said in a statement that the smuggling of illicit HFCs "undermines international efforts to combat climate change."

"Anyone who seeks to profit from illegal actions that worsen climate change must be held accountable," Uhlmann added. "This arrest highlights the significance of EPA's climate enforcement initiative and our efforts to prevent refrigerants that are climate super pollutants from illegally entering the United States."

Hart made his first appearance in federal court on Monday afternoon and pleaded not guilty, according to the U.S. Attorney's Office. He faces charges of conspiracy, importation contrary to law and sale of merchandise imported contrary to law.

Conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. Hart also faces a maximum penalty of twenty years in prison and a $250,000 fine on his other charges. His next hearing is scheduled for March 25.

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U.S., other countries have been phasing out use of HFCs

According to the EPA and U.S. Attorney's Office, HFCs are "potent greenhouse gases that cause climate change." The gases are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols.

"The use of HFCs has been rapidly increasing worldwide due to the global phaseout of ozone-depleting substances and increased demand for refrigeration and air conditioning," the U.S. Attorney's Office said.

Last summer, the EPA announced a rule imposing a 40% overall reduction in HFCs as part of a global phaseout designed to slow climate change. The rule follows a 2020 law, known as the American Innovation and Manufacturing Act, that prohibits the importation of HFCs without allowances issued by the EPA.

The law authorizes the EPA to reduce the production and consumption of HFCs by 85% "in a stepwise manner by 2036," according to the agency. It aligns with a 2016 international agreement — signed by more than 130 countries, including the United States — to limit the use and production of HFCs.

Contributing: The Associated Press