Legislative Update
Vijay Yadlapati, NATIONAL ASSOCIATION OF REALTORS® Associate
Commercial Policy Representative
EPA Seeks to Propose
Commercial Lead-Based
Paint Rules
Issue
Origin
In order to limit exposure of humans, especially children, to lead-based paint hazards, Congress in 1992 enacted the Residential Lead-Based Paint Hazard Reduction Act (Title X of Public Law 102-550).
Section 1018 of Title X regulates disclosure of lead-based paint in
sales and lease transactions involving pre-1978 residential properties. This law also required the Environmental Protection Agency
(EPA) to reduce lead paint hazards during renovation, repair and
painting (RRP) activities in target residential and commercial buildings. Pursuant to this statute, recent EPA regulations for residential
housing require contractors to comply with additional lead hazard
reduction procedures before, during and after any remodeling or
renovation activity to reduce the creation of lead dust. EPA is now
beginning to develop proposed regulations that address RRP activities in commercial buildings.
What's At Stake
The residential RRP rules have increased regulatory burdens on
small businesses and increased costs for consumers, as well as
property managers. Similar rules for commercial buildings would
also impose increased regulatory burdens and costs on the com-
mercial real estate sector.
NAR Position
NAR opposes mandatory testing for lead-based paint tied to the
transaction process and supports property condition disclosure and
education. NAR also opposed the RRP rule due to its costs and
administrative burdens.
Outlook of Rulemaking
The EPA was required by a court settlement to propose a rule regulating RRP activities on the exterior of commercial buildings by
December 2011 and finalize this rule by July 2013. While this proposal has been delayed, the EPA expects to issue a proposal this
year.
The agency is required to propose a rule that addresses RRP
activities for the interior of commercial buildings, but the timing
of that proposed interior rule is contingent upon additional research
and the collection of scientific information. The EPA may propose
a rule for reducing lead hazards inside commercial buildings by
December 2013, with a finalized rule at some point in 2015.
What NAR is Doing
To address these proposed rulemakings, NAR has convened meetings with EPA staff, hired legal counsel to provide us with strategic advice on how to best have EPA address our concerns, and are
working in coalition with other regulated stakeholders to ensure our
concerns are heard by EPA and members of Congress. NAR will
also comment on the proposed commercial building RRP exterior
rule once it is proposed.
