Business Costs

Lead Paint Rules Could Have
Far-Reaching Consequences

Regulations taking effect next month may prove a big hassle -- and a huge expense -- for contractors and homeowners alike.

By Andrew C. Schneider, Associate Editor, The Kiplinger Letter

March 11, 2010

New lead paint rules will reach further than many businesses may realize. Under Environmental Protection Agency regulations that go into effect April 22, any contractor who repairs, renovates or paints homes built before 1978 must have at least one employee undergo safety training. Such a licensed employee would need to be present at the worksite at the start and the end of any project that might disturb lead-based paint and throw contaminated dust into the air. The rule requires eight hours of training from an EPA-accredited instructor, at an average cost of $200-$250 per employee, and the certification must be renewed every five years.

While the time and resource commitment are relatively modest, there is a significant shortfall in the number of approved trainers. Nationwide, there are just 146 companies licensed to provide such training, only eight of which are willing to cross state lines. As of the end of last month, fewer than 7,000 of the more than 200,000 individuals the EPA estimates will require such training had received it.

As long as the housing market remains weak, the shortage of certified contractors will have little effect on homeowners. But if the economy recovers and demand picks up before the problem is fixed, the cost of remodeling will accelerate. More homeowners are likely to take on the task of remodeling themselves as a way of saving a few bucks. In so doing, they’d run the risk of exposing themselves and their family to any lead paint they may disturb in the process. Lead poisoning can damage the brain, central nervous system, red blood cells and kidneys. Young children are particularly susceptible.

Michael Mittelholzer, assistant vice president for environmental policy at the National Association of Home Builders, fears that a large number of subcontractors are likely to be caught unprepared when the rule goes into effect. “There’s a whole universe of trades that may not even be aware of it,” says Mittelholzer. Electricians, plumbers, HVAC technicians and, indeed, anyone whose work requires them to cut through walls in a pre-1978 home would fall under the rule. Roughly 68% of the current U.S. housing stock was constructed prior to 1978.

Under the Toxic Substances Control Act, penalties for firms that engage in remodeling without the proper lead safety certification can be severe. Each day of noncompliance can bring up to $25,000 in civil penalties. Criminal penalties for willful violations can add up to an additional $25,000 and/or up to a year in jail for each day out of compliance. Even a brief time operating without the proper license would be more than enough to break a small firm.

Maria Doa, director of the EPA’s National Program Chemicals Division, expects the number of safety licensed contractors to increase dramatically in the final six weeks before the rule takes effect. “People are waiting, as they do for many things, until the last minute,” says Doa. The agency is planning a major marketing and outreach effort to encourage affected contractors to enroll for training. It’s also working with the Ad Council on a campaign to alert parents and homeowners to the dangers of lead poisoning, underscoring the importance of hiring remodelers trained in lead paint safety.

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