NY grocer Gristedes to spend millions to settle US greenhouse gas charges

By Jonathan Stempel

NEW YORK (Reuters) - The New York supermarket chain Gristedes will pay a $400,000 civil fine and spend $13.5 million on repairs and upgrades to settle charges that its store refrigerators emitted far more greenhouse gases than rivals' refrigerators, the U.S. Department of Justice said on Monday.

Gristedes was accused of allowing 42,094 pounds of refrigerant leaks from its stores between 2019 and 2021, the greenhouse gas equivalent of driving a gas-powered car 140 million miles (225 million km) -- or 5,622 times around the Earth's equator.

The Justice Department also said Gristedes "completely ignored" a U.S. Environmental Protection Agency rule adopted under the Clean Air Act that requires supermarkets to monitor, repair and document commercial refrigerant leaks.

Under a consent decree, Gristedes must reduce emissions by at least 73% from 2020 levels, and will face significant additional penalties if it fails, U.S. Attorney Damian Williams in Manhattan said in a statement.

The decree requires Gristedes to make needed repairs, install advanced refrigerants with low global warming potential in three stores, and lower its corporate leak rate within four years to below 16% from 59% in 2020.

A judge must approve the consent decree, which was signed by Gristedes' billionaire owner John Catsimatidis.

Gristedes had no immediate comment. The chain no longer uses ozone-depleting substances as refrigerants at its stores but acknowledged using hydrofluorocarbons, which are also greenhouse gases, the consent decree said.

WIth a lineage dating to 1888, Gristedes operates 19 stores, mainly in Manhattan, according to its website.

(Reporting by Jonathan Stempel in New York; editing by Jonathan Oatis)