By Lauren Hunter, http://www.remodeling.hw.net
According to a recent report from the Environmental Protection Agency’s Office of the Inspector General (OIG), the EPA is losing money on its lead-based paint program. Based on the agency’s estimates since the Renovation, Repair, and Painting (RRP) rule went into effect in 2010, the total loss will amount to $16.4 million by 2014. Fiscal year 2010 actually turned a profit of $8.9 million, but costs are exceeding fee collections by $25.3 million for 2011 through 2014.
According to the report, three issues are contributing to the EPA’s unrecovered costs. The agency has not conducted recommended biennial cost reviews to ensure that fees are in line with costs, and the fee structure also does not take into account all the indirect costs needed to recover the cost of administering the lead-based paint program. More importantly, the agency notes that RRP firm participation is lower than projected. Read More