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09 May May 09, 2013

EPA Losing Millions on Lead RRP Rules

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New Government Report Reveals EPA Losing Millions on Lead RRP Rules

According to the Office of Inspector General (OIG) the EPA has lost $25.3 million on the Renovation, Repair and Painting (RRP) Lead Based Paint program between fiscal year 2011-2014. Although collections exceeded costs by $8.9 Million in fiscal year 2010, there is still a total deficit of $16.4 Million.

The shortfall is primarily attributed to a dramatic over-estimation of Certified Firm Applications and payment of those fees ($300 for 5 years). The following chart shows EPA estimates versus actual companies obtaining the Certification

Year 1

Year 2

Total

EPA Estimated Certified Firms

212,000

72,000

284,000

Actual Certifications

87,000

13,000

100,000

Percentage Overestimated

59%

82%

65%

Source: OIG analysis of EPA data.

In order to cover the shortfall, the OIG is going to require the EPA to update the fee rules to cover all cost of operating and administering the RRP program. In addition, they will be required to conduct ongoing reviews to ensure costs are recouped.

What does this mean to contractors, maintenance firms and property management companies?

Clearly these rules are not going away. With an expansion into commercial and public buildings on the horizon, it’s difficult to imagine the EPA being able to successfully reduce expenses to meet the shortfall. More likely is an increase in fees and costs on all levels of the program.

This means that your marketing must set you apart from your competition. It must be driving a torrent of ready-to-buy, price-is-no-object customers to you who crave the quality and service that only you can deliver.

To learn how to attract the absolute best, highest paying clients who refer you and your company over and over again come to one of our next Lead Classes

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