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Elements of Radon Risk Compliance and Penalties in the Real World A look at increasing risks facing U.S. radon professionals. Basis of EPA/State Programs. Late 1980s – the USEPA Concentrated On: Voluntary Program – Not Risk Reduction Based Consumer Protection from a Wild West Industry
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Elements of Radon Risk Compliance and Penalties in the Real World A look at increasing risks facing U.S. radon professionals
Basis of EPA/State Programs • Late 1980s – the USEPA Concentrated On: • Voluntary Program – Not Risk Reduction Based • Consumer Protection from a Wild West Industry • Industry Was the Problem – Not Radon • Created Barriers/Threshold for Entry • Government Standards – Top Down Program • Criteria Lite Requirements for Providers – RPP & Regional Radon Training Centers • Assumption Education would compel States to Enforce Emerging Markets - New Opportunities
US EPA’s Voluntary Program Acceded to the Housing Lobby (Real Estate and Home Builders) and Created a Cheap Voluntary System that Would Not Interfere with Housing Sales. Emerging Markets - New Opportunities
28 Years Later Lead * Learn * Mentor * Contribute * Communicate • Privatized the RPP in 1998 • Reduced EPA Funding • 4,000 Certified/Licensed in U.S. • There should be 40,000 certified • Lacking sustainable infrastructure
Compliance Risk & Professionals Lead * Learn * Mentor * Contribute * Communicate • Typically • Radon Risk is talked about as Health Risk • First 20 Years – For Pros - Most Risk Contractual • Contractual Interference – Small Claims • Seller Complaints – Sales Transaction - Measurement • Very Few Mitigation Complaints • Again – Mostly Contractual
The Typical Case – First 20 Years Lead * Learn * Mentor * Contribute * Communicate • Contract Dispute • Seller Does Not Like Test • Claims Test Results Wrong – Threatens Suit • If Buyer Reneges On Sale – Sues • Claims Contract Inference – Goes After Lost Sale • Minimal Impact on Profession
Compliance – 20 Years Lead * Learn * Mentor * Contribute * Communicate • 35 States Non-regulated • Tribal Nations/Military/Territories – No Regulations • 5 States Weakly Regulated • 10 Highly Regulated States • Having State Regulations & Enforcement • Most Enforcement - Educations
Regulated Compliance – First 20 Years Lead * Learn * Mentor * Contribute * Communicate • NRPP and NRSB • Suspensions and De-Certification • Highly Regulated States • Warnings – Seeking Re-education • Fines – Minor • Some Decertification of “Bad Players”
2010 – Radon Risk Seismic Shift Good News – Increased Compliance Bad News – Torts Emerging Markets - New Opportunities
Why Increased Compliance is Good News… Lead * Learn * Mentor * Contribute * Communicate • $4,000 Fines for Non-Compliance Will Be the New Normal • Regulated States Have Increased Penalties • Minimal Fines Per Occurance – Significant Totals • Such As CRM not calibrated • Failure to Maintain QA/QC • $100,000 fines may become the Norm.
Case Study 1 : Regulated State Lead * Learn * Mentor * Contribute * Communicate • Reputable Licensee – 24 Years Experience • Failure to Calibrate 2 CRMs in Inventory • Lost Paperwork • Calibration Lab Closed – No Access to backup records • State Tracked Usage of CRMs after Out of Calibration Date – over 8 months • $50 fine per occurance • Total Fine Exceeded $4,000.
Case Study 3: Non Regulated State Lead * Learn * Mentor * Contribute * Communicate • NRPP Case in Non-Regulated State • State Submitted Compeling Evidence to NRPP • Compelling Violations of EPA RMS • State De-listed Company from Web Site • NRPP Decertified the Professional • Company was required to create QA/QC Plan • Lost web references for 6 Months
Case Study 3:Code Enforcement Lead * Learn * Mentor * Contribute * Communicate • Code Enforcement in Non-Regulated State • 150 Cases Electrical Wired w/o Licensed Electrician • City Department Issued Cease and Desist Order • No Work Allowed Until Resolved • 100 Sites Had to Be Re-wired by Licensed Electrician • At Least $15,000 in Direct Costs • 4-5 Weeks Lost Work in City
Case Study 4: Regulated State: Kansas Lead * Learn * Mentor * Contribute * Communicate • National Company - $106,000 Potential Fine • Non-compliance, multiple violations • $30,000 Fine • Signed Consent Order • Future Requirements and Potential $76,000 Fine held in abeyance
That’s The Good News Lead * Learn * Mentor * Contribute * Communicate • Generally, Fines Enacted by Agencies (Both Private and Public Agencies May Fine) Seek To: • Change Behavior • Compel Compliance to recognized Standards • Protect the public and other professionals • Termination of Certification is Last Resort
Bad News: Class Action Law Suits Lead * Learn * Mentor * Contribute * Communicate • Ambulance Chasers Also Change Behavior • Radon: • Significant Lawsuits Are Now Impacting The Marketplace • Radon Torts are Now Risky – Think Millions
Class Action Case One Lead * Learn * Mentor * Contribute * Communicate • Condo Association Members Sued • Property Managers, R.E. Agent, Builder and Radon Professional • For Failure to Inform of Radon Remediation • Lawsuit Cost Member > $700,000 • Each Defendant faced individual costs • Settlements were Extensive
Class Action Case One Lead * Learn * Mentor * Contribute * Communicate • Don’t Go Along with the Customer • Absence of a Standard is Not Absolution • Underwriting the importance of a complete set of National Standards
Class Action Case Two Lead * Learn * Mentor * Contribute * Communicate • National Builder • Failure to Adhere to RRNC Standard • Costly Legal Defense • Public Company – Reserved Tens of Millions • Settlement was Sealed • Did Not Exceed Reserves
AARST-NRPP Action Steps Lead * Learn * Mentor * Contribute * Communicate • Increased Compliance Staffing • Required QA Plan Submissions • Audits – Cost to the Professional • Reinstatements will be Provisional/Audited • Extra Cost • Penalties May Include Extra $$ Fees/Penalties