Presented by:Lee E. Wasserman – LEW Corp. Gary Gordon, Esq. – Feinstein, Reiss, …Greg Steinman, – Synapse Risk Management

This program is from is from 9am to 12 noon, with a break in the Middle. Its never enough time.

Three Simple Steps for Full Compliance of EPA’s LBP RRP Rule.

For anyone who “MAY” disturb lead-based paint

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ATLANTIC BUILDERS CONVENTION

Govt. ? ISIS? Plan Crashes?

Lead-based Paint for Real Estate Agents (3 CEU)

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This program is from 9am till 12pm, students who want to obtain Real Estate 3 CEU’s must register prior to the start of the program. HAS ANY ONE NOT register who would like to NOW?

Introduction:

The Rules and Regulations

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Failure to Obtain Certification.  Failure to obtain a firm certification from EPA before commencing renovations on the property.Failure to Obtain Acknowledgement of Receipt of Pamphlet.  Failure to obtain from the property owner written acknowledgement that the owner received EPA’s Renovate Right lead hazard information pamphlet prior to the renovation.Failure to Post Warning Signs. Failure to post signs warning occupants and others not involved in the renovation activities to remain outside the work area.Failure to Contain Waste. Failure to contain waste from the renovation activities to prevent the release of dust and debris.Failure to Store Waste. Failure to store waste under containment at the conclusion of the work day.Failure to Retain Documentation. Failure to retain required renovation records.Failure to Ensure Certified Renovator Assigned. Failure to ensure that a certified renovator was assigned to the renovation.

In December 2014, (EPA) announced 62 enforcement actions that require renovation contractors and training providers to protect people from harmful exposure to lead dust and debris. RRP Violations.

ACTUAL EPA RRP ACTION IN 2014AXX Construction, Inc. - Overview of Company and Facility Location(the Company) is located in, New Jersey.  The settlement involves a renovation conducted at a pre-1978 property in Howell, New Jersey.

Violations The Consent Agreement and Final Order (CAFO) settles alleged violations (TSCA), and the (RRP Rule), 40 C.F.R. Part 745, Subpart E. In the CAFO, the US alleges that the Company committed the following violations:

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Regulations

U.S. Environmental Protection Agency (EPA): Established accredited training and certification programs for

workers, supervisors, inspectors and risk assessors conducting evaluation or abatement of lead-based paint.

Established requirements for pre-renovation education. Promulgated the Renovation, Repair, and Painting Program Final

Rule (RRP Rule). 1/23/2015 Renewals Should Begin!U.S. Department of Housing and Urban Development (HUD): Established actions in Federally-assisted target housing. Established Federal grant programs. Established guidelines for lead-based paint evaluation and

control; established the Lead Safe Housing Rule. (2012)U.S. Occupational Safety and Health Administration (OSHA): Established worker protection standards.

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The RRP Rule

Addresses activities that disturb lead-based paint in target housing and child-occupied facilities. It requires: Renovators to be certified through training. Firms to be certified. Training providers to be accredited. Lead-safe work practices during renovations. Pre-renovation education in target housing and child-occupied

facilities.• On or after April 22, 2010, firms working in pre-1978 homes and child-occupied facilities must be certified and use lead-safe work practices during renovations.• EPA may authorize states, territories and tribes to enforce the Rule.•4/23/15 First renewals occur (90 day submission recommended training refresh date 1/23/15)

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The RRP Rule: Exclusions

• Renovation activities where affected components do not contain lead-based paint.

• Emergency renovations (requires cleanup and cleaning verification).

• Minor repair and maintenance activities. Note: This exclusion does not apply to window replacement, demolition or activities involving prohibited practices.

• Renovations performed by homeowners in their own homes.

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The RRP Rule: Firm Certification

• On or after April 22, 2010, all covered renovations must be performed by Certified Firms, using Certified Renovators and other trained workers.

• To become certified, firms must submit an application, and pay a fee, to EPA. Firms may begin to apply for certification on October 22, 2009.

• Certifications will be good for 5 years. 2015• Certification allows the firm to perform renovations

in any non-authorized state or Indian tribal area.

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The RRP Rule: Firm Responsibilities

• Ensure overall compliance with the RRP Rule.• Ensure that all renovation personnel are

Certified Renovators or have been trained on-the-job by Certified Renovators.

• Assign a Certified Renovator to all jobs.• Meet pre-renovation education requirements.• Meet recordkeeping requirements!

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The RRP Rule: Individual Certification

• To become a Certified Renovator, an individual must take an EPA-approved 8-hour training course from an EPA-accredited training provider.

• The course completion certificate serves to certify renovators (no application to EPA is required).

• Refresher training is required every 5 years.• Workers do not need certification so long as on-

the-job training is received from a Certified Renovator and the work is not HUD-regulated.

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The RRP Rule: Certified Renovator

Responsibilities Perform work and direct lead-safe work practices. Provide on-the-job training to non-certified workers. Keep a copy of the initial and/or refresher training

certificates onsite. Use EPA-recognized test kits to identify lead-based paint. Be physically present while posting signs, containing

work areas, and cleaning work areas. Be available by telephone when off-site. Maintain the containment to keep dust and debris within

the work area. Implement the cleaning verification procedure. Prepare and maintain required records.

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The RRP Rule: Enforcement

EPA may suspend, revoke, or modify a firm’s certification if the Certified Firm or Certified Renovator is found to be in non-compliance.

Those firms found to be non-compliant may be liable for civil penalties of up to $37,500 for each violation.

Those firms who knowingly or willfully violate this regulation may be subject to fines of up to an additional $37,500 per violation, or imprisonment, or both.

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Module 1Why Should I Be Concerned

About Lead Dust?

CDC 2012 Advisory Report, 5ug/dl = New Reference Value.

Poisons childrenPoisons children Violation of some lawsViolation of some laws LitigationLitigation

Why be concerned about Environmental Risk?

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Module 1 Overview

Why is lead-contaminated dust a problem? Health risks and effects of lead? What is lead-based paint? How many homes contain lead-based paint? What is being done about lead-based paint? Summary

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How do we create dust?

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A little dust goes a long way . . .

You can’t see it It’s hard to sweep up And it travels

One gram of lead can contaminate several homes!

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Why Is Dust and Debris a Problem?

Dust and debris can contain lead Lead-contaminated dust and debris is

poisonous Very small amounts of lead-contaminated dust

can poison children and adults Children swallow it during ordinary play activities Adults swallow or breathe it during work activities

Workers can bring lead-contaminated dust home and poison their families

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Health Risks of Lead

Very hazardous to children Reading and learning difficulties Behavioral problems Difficulty paying attention and hyperactivity May result in seizures, coma, and death

Hazardous to pregnant women Damage to fetus

Also hazardous to workers and other adults Loss of sex drive Physical fatigue, high blood pressure

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THINK ABOUT OUR KIDS

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THINK ABOUT YOUR HEALTH

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Lead Poisoning

Lead poisoning does not always have obvious symptoms Symptoms are easily misdiagnosed, thus delaying

effective treatment and increasing the likelihood of permanent physical and mental damage

Only sure way to determine lead poisoning is to take a blood lead level (BLL) test.

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What Is Lead-Based Paint?

Lead-based paint is Any paint or surface coating that contains more lead than 0.5% or

5,000 ppm by dry weight or 1.0 mg/cm2

Some states regulate paint with lower concentrations of lead Why was lead used in paint?

Primary pigment Added color Durability Drying agent Mildew inhibitor Corrosion inhibitor

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How Widespread is Lead in Housing?

Year House Was BuiltPercent of Houses with

Lead-Based Paint

Before 1940 87 percent

1940-1959 69 percent

1960-1978 24 percent

All Housing 40 percent

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What Is Being Done About Lead?

Ban in Residential Housing Lead-based paint was banned from

residential use in 1978 Pre-Renovation Education Rule

Contractors must distribute a pamphlet (See Appendix 5).

Disclosure Rule Buyers/renters receive information

about lead in their homes They can share this information with

contractors

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What Is Being Done About Lead?

Worker Training EPA/state training and accreditation programs for abatement Lead Safe Work Practice Training (like this one) for renovation,

repair, and painting rule.

Worker Protection Worker protection standards

Lead Hazard Reduction Initiatives Required actions in Federally-assisted housing Federal grant programs State and local initiatives

Renewals of RRP begin 4/23/15

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How Do I Work Lead Safe?

Follow the work practices shown during this & EPA’s RRP training programs.

Plan your work using the chart in Appendix 1 to determine if Federal or State requirements apply to a job.

Properties that receive housing assistance Ask the agency providing the assistance about lead safety

requirements. (Hurricane Sandy work might be HUD subsidized!)

Jobs involving lead abatement Tell the owner that a certified lead abatement contractor must

perform those activities.

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Now You Know

Why we are concerned with lead-contaminated dust

The health risks of lead to children and adults Some actions taken to address lead-based

paint

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Module 2Using Containment

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Module 2 Overview

What is containment? Four steps for interior activities

Special considerations for high dust jobs

Two steps for exterior activities Special considerations for high dust jobs

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What Is Containment?

Keeping lead-contaminated dust in the work area

Benefits of containment Protects residents and workers Easier clean-up at the end of the job

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Current Interior Set-Up Practicesthat Poison children

Reusable drop cloth Furniture and household

objects in the room Open doors and

windows Broom or shop vacuum

Do not use these practices when lead is present!

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Overview of Interior Set-Up Steps

Step 1: Limit access Step 2: Cover belongings that can not be

moved Step 3: Cover floors Step 4: Close windows, doors, and HVAC

system Special consideration for high dust jobs

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Set-up Toolkit

Barriers and signs Coverings for furniture,

fixtures, plants, or outdoor play areas

Other set-up containment items

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Interior Set-UpStep 1: Limit Access

Instruct residents to stay away from work area

Do not allow small children (under 6 years) or pets near work area

Place a barrier or tape across entrances

Post a sign

Do not allow eating, drinking, or smoking in the work area

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Insert illustration here

Interior Set-UpStep 2: Remove and Cover Belongings

Remove belongings Cover furniture and

objects in protective sheeting Furniture Carpet Lamps, pictures, and other

fixtures

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Interior Set-UpStep 3: Cover Floors

Cover floors with protective sheeting At least five feet on all sides

of work area 2nd smaller layer if using

chemical strippers Place a tack pad at edge of

protective sheeting, lay protective sheeting on frequently used walking paths to outdoors and bathrooms

5’5’

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VERTICAL CONTAINMENT

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Interior Set-UpStep 4: Close Windows, Doors, HVAC

Close all windows and doors Close and seal HVAC vents

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Special Considerations forInterior High Dust Jobs

Remove furniture, fixtures and belongings from work area

Cover door openings with a 2 layers of protective sheeting to form an “airlock”

Close and cover HVAC vents

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Special Considerations For Interior High Dust Jobs

For work on removable objects that create lots of dust

Select a room that can be easily closed off Follow Steps 1 through 4 for

interior set-up Follow the procedures for

high dust jobs

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Current Exterior Set-Up Practices that Poison children

Ground uncovered Reusable drop cloth Paint chips No barriers Windows and doors open

Do not use these practices when lead is present!

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Overview of Exterior Set-up Steps

Step 1: Establish work area Step 2: Close windows and doors Special considerations for high dust jobs

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Exterior Set-UpStep 1: Establish Work Area

Cover the ground with protective sheeting If space permits, extend at

least 10 feet from work area Cover nearby vegetable

gardens and children's play areas

Limit work area access Establish a 20 foot

perimeter around work area if space permits

20’

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Exterior Set-Up Step 2: Close Windows &Doors

Close nearby doors and windows within 20 feet of the work area

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Special Considerations ForExterior High Dust Jobs

For high dust jobs: Cover doors and windows with protective sheeting Use the two-layer protective sheeting system to cover the door For multi-story jobs, attach protective sheeting to scaffolding to

cover house entrance

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Now You Know

How to set up for a job Interior containment Exterior containment High and low dust jobs

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Module 3

Working Safe

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Module 3 Overview

High risk practices to avoid Safe work practices and safe work practices

toolkit Protect yourself and make a personal

protection equipment toolkit Control the spread of dust Exercise (Actual Case) Discussion

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Typical Lead Dust Creation

0

100

200

300

400

500

600

Hand Sanding Power Sanding Interior DemolitionTraditional Work Practices

Mic

rog

ram

s/M

ete

r3

*

* OSHA’s PEL, 50 µg/m3

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High Risk Practices

Open flame burning or torching

Heat gun above 1,100 degrees Fahrenheit

Power sanding, grinding, abrasive blasting without HEPA vacuum attachment

Extensive dry scraping and dry sanding

RRP Hydro-blasting (aka Power wash, unless contained)

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Safe Work Practice Alternatives

High Risk Safe

Open flame burning or torching

Wet scraping and sanding, chemical stripping, heat gun below 1,100 degrees F

Heat gun on high

(1,100+ degrees F)

Heat gun below 1,100

degrees F Dry scraping and sanding

Wet scraping and sanding

Power sanding, grinding, abrasive blasting without attachment to HEPA vacuum

Use of power tools with attachment to HEPA vacuum

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More Safe Work Practices

Mist before drilling and cutting

(hand tools only) Score paint Minimize pounding and

hammering -- pry and pull instead Mist surroundings Use shaving cream.

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Benefits of Safe Work Practices

Protect your health Protect your family by not bringing dust home

with you Protect residents, especially children Simplify daily and final cleanup Enhance reputation for knowledge and

professionalism

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Safe Work Practices Toolkit:

Wet/dry sandpaper, sanding sponge Mist bottle, pump sprayer Tape (painter’s, duct, masking) Heavy duty (4-6 mil) plastic sheeting Heavy duty garbage bags Chemical stripper Utility knife Heat gun Vacuum with HEPA filter

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Safe Work Practices Toolkit:Consider Investing in New Tools

Large jobs may require special tools Power sanders, grinders, planers, shavers with HEPA

filter vacuum attachment

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Protect Yourself

Workers should wear Painter’s hat -- helps keep dust out of hair Disposable coveralls

– Can be reused if not ripped– Repair tears with duct tape– Store in plastic bag

Disposable N-100-rated respirator Wash face and hands frequently

Helps to reduce hand-to-mouth ingestion of lead dust OSHA may require more protection Insurance Coverage

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Personal Protection Equipment (PPE)

Disposable hand towels Pre-moistened disposable wipes Painter’s hats Gloves Coveralls Disposable shoe covers N-100-rated disposable respirators

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Control the Spread of Dust

When you leave the work site Remove shoe coverings, HEPA vacuum or wipe shoes Use tack pads Remove coveralls or HEPA vacuum clothes

At the end of the day don’t take lead home to your family on your clothes or in your car HEPA vacuum clothes, shoes Change your clothes and dispose or place in plastic bag to wash

separately from household laundry Wash hands, face Shower as soon as you get home

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Cleaning During the Job

A clean work site reduces the spread of dust and paint chips

Clean as you work HEPA vacuum horizontal surfaces Remove debris frequently Remove paint chips as they are created As building components are removed, wrap and

dispose of them immediately Clean frequently (in stages, at least daily)

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Now You Know

How to work safely with lead Dangerous practices Alternatives to traditional practices

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Module 4 Clean-up and Check Your Work

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Module 4 Overview

What is effective clean-up? Clean up toolkit Interior clean-up techniques Exterior clean-up techniques How to check your work Safe disposal methods Keep in mind

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What is Effective Clean Up?

Containing dust during clean-up to the area that will be cleaned

Using proper cleaning techniques Cleaning all surfaces, tools and clothing Checking your work

This could include clearance testing

Safe and secure disposal

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Clean Up Toolkit

Vacuum with HEPA filter Misting bottle and pump sprayer Mop with disposable heads Detergent Two buckets or two-sided bucket Disposable hand towels Heavy duty garbage bags Duct tape Shovel and rake

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HEPA VACCUM

6/11/03 4-66

WASH

6/11/03 4-67

HEPA

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Interior Clean-Up Techniques

Pick up all paint chips with wet, disposable cloth

Pick up protective sheeting Mist sheeting before folding Fold dirty side inward Tape shut to seal in dirty side

Dispose of protective sheeting at end of job

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Interior Clean-Up Techniques

HEPA Vac work area from high to low Start with walls, tops of doors,

window troughs HEPA Vac at least two feet

beyond contained area Wet clean from high to low

Change cloths and rinse water often or use disposable wipes

Clean the floor last Check your work visually

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Interior Checking Your Work

Always conduct a visual inspection after cleaning Look for paint chips, dust, debris, and deteriorated paint Focus on child access areas such as floors, window

troughs, window sills Inspect beyond work area Repeat clean-up steps if necessary

Clearance (dust sampling) Encouraged to check work Sometimes required

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Cleaning Verification (CV) Procedure

Wipe each window sill within the work area. Use a single wet disposable cleaning cloth per window sill.

Wipe uncarpeted floors and all countertops with wet disposable cleaning cloths. Wipe up to a maximum of 40 ft2 per cloth.

Compare each wipe to the CV card. If the cloth matches or is lighter than the CV card, the surface has passed cleaning verification and no further action is required.

If the cloth is darker than the CV card, re-clean and repeat the CV process.

If the second wet cloth fails, wait 1 hour or until surfaces are dry, and then wipe with an electrostatically-charged white disposable cleaning cloth designed to be used for cleaning hard surfaces. This completes the cleaning verification.

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Dust Clearance Examination

A dust clearance examination may be performed instead of cleaning verification. A clearance examination must be a conducted

by a Certified Lead Inspector, Risk Assessor, or Dust Sampling Technician.

If clearance fails, the renovation firm must re-clean the work area until dust standards comply with applicable state, territorial, tribal and local standards.

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Exterior Clean-Up Techniques

For high-dust jobs mist area to keep dust down Visually inspect work area

Look for dust, debris, and paint chips Focus on child access areas such as:

– Window sills

– Bare soil and ground

– Play areas

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Exterior Clean-Up Techniques

Pick up protective sheeting Collect and dispose of any debris or chips on sheeting HEPA vacuum sheeting Clean sheeting to visual clearance Fold and store securely for reuse

Visually inspect beyond work area

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Exterior Checking your Work

Visual inspection Always conduct a visual inspection after any cleaning Focus on child access areas such as

– Bare soil or ground– Window sills– Exterior porches– Play areas

Inspect beyond work area

Collect and dispose all paint chips, dust, debris, and deteriorated paint

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Disposal

What should I do with my waste?

At the work site Place waste in heavy duty plastic

bag “Gooseneck Seal” the bag with duct

tape Carefully dispose of waste in

accordance with State and Federal regulations

Store waste in a secure area

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Disposal – Federal, State and Local Information

According to Federal law: In housing: Waste must be disposed of as normal

household waste. In non-residential child-occupied facilities: If waste

exceeds 220 lbs, treat all debris as hazardous.

Always check local requirements!

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Disposal - Local and Federal Information

Segregate hazardous and non-hazardous waste

Minimize generation of hazardous waste Always check State regulations!

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Keep In Mind

Schedule time to clean thoroughly at the end of each day

Assign responsibilities to specific personnel Create and maintain a checklist for cleaning

procedures Always maintain sufficient cleaning and

disposal supplies Clearance is an option for checking your work

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Module 5Recordkeeping

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Module 5: Recordkeeping

Overview: In this section, you will learn about

records required for each job. Records must be retained and made

available to EPA, upon request, for 3 years following completion of renovation.

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On-The-Job Records

Copies of Certified Firm and Certified Renovator certifications (must be kept on site).

Lead-based paint testing results when an EPA-recognized test kit is used.

Proof of owner/occupant pre-renovation education. Non-certified worker training documentation (must be

kept on site). Check list Cleaning verification or clearance Final close out package distribution

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Recordkeeping: Pre-Renovation Education Records

In Target Housing – Individual units: Must acquire either written proof of receipt by an adult occupant

or proof of delivery/unsuccessful delivery of Renovate Right, or: Written proof of receipt of Renovate Right by owner or proof of

mailing (if mailing, send 7 days prior to renovation).In Target Housing - Common Areas (Two Options): Provide written notification to each affected unit and make

Renovate Right pamphlet available on request; or: Keep copies or pictures of the signs and notices posted.

In Child-Occupied Facilities Written proof of receipt of Renovate Right by owner or proof of

mailing required (If mailing, send 7 days prior to renovation). Maintain proof of receipt by owner or adult representative, or

certify in writing that the Renovate Right pamphlet has been delivered to facility.

Keep copies or pictures of the signs and notices posted.

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Sample Confirmation of Receipt of Renovate Right

I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard Information for Families, Child Care Providers and Schools.

Recipient Signature:__________ Printed Name: __________ Date:__/__/__

Self-Certification Option (for tenant-occupied dwellings only) - If the lead pamphlet was delivered but a tenant signature was not obtainable, you may check the appropriate box below.

Refusal to sign. Unavailable for signature.

Gather the following information: Printed name and signature of person certifying lead pamphlet delivery. Date and time of lead pamphlet delivery. Unit address.

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Recordkeeping: Non-Certified Worker Training

Worker’s name. Description of lead safe work practices the

worker is trained to perform. Completed and signed skills evaluation

checklists. Date(s) of training. Name and signature of the Certified Renovator

who conducted the training.

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Recordkeeping: Test Kit Reporting

If an EPA-recognized test kit is used to test surfaces in the work area, the firm must: Submit a report to the person contracting for the work Submit a report to the person contracting for the work

within 30 days after the end of the renovation, within 30 days after the end of the renovation, containingcontaining:– Manufacturer and model of the EPA-recognized test kit.– A description of of the components tested.– The location of components tested.– Results of the testing.

Retain a copy of the test kit documentation form.

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Recordkeeping: Post-Renovation Reporting

At the end of each renovation, the Certified Renovator must sign a report including the following information: Name of Certified Renovator assigned to lead the project; Copy of Certified Renovator certification(s); Certification from a Certified Renovator of non-certified worker

training, and a list of the topics covered; Certification of posting of warning signs; Description of chemical spot testing, if any performed; Certification by the Certified Renovator of work area

containment, on-site waste containment and transport, proper post renovation work area cleaning, and of successful cleaning verification.

Clearance report, if performed.

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Now You Know…

To have records available at the work site of: Training of Certified Renovators and non-certified renovation

workers. Certifications for the Certified Firm and Certified Renovators.

To retain all records for at least 3 years after completion of the renovation.

To keep records of: Training and certifications for all renovation personnel, and for

certification of the firm. Distribution of required information. Communications with and certifications from owners and

residents. Work activities in compliance to the Rule. Post-renovation reports.

How to manage hazardous environmental risk

Once you have Identified the Hazardous Risk you then must. Identify all the different forms of Related Risk the

Hazardous Env. risk could impact.– Regulatory Risk – not complying with a law– Litigious risk – someone suit you for exposure– Financial risk – what will this cost– Operational – how will this Hazard env. Material impact

current operations & future operations. – Strategic risk – if we do or don’t do this what is our best

outcome (what are the risk to our strategy)

OSHOSHAA

3 Simple Steps for Compliance3 Simple Steps for Compliance

what responsibilities are most important, why and how best to practice them?

Training ComplianceDocumentation complianceWork Practice Stds.

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Gary Gordon, Esq.

Litigation Risk Standard Applied to Lead Poisoning Cases Potential Individual Liability

1-91

Thank You!

And remember questions are always free.

Register today for a Refresher course near you!

www.RRPTrainer.comwww.RRPTrainer.com

•1-800-783-0567•info@lewcorp.com•www.lewcorp.com

History of the Environmental Movement & Cornerstone Regulations

After WWII there was a growing awareness to combat the ways humans were impacting the environment

More than 6,300 shipwrecks from the WWII era. Oil contained on those ships estimated up to 6 billion gallons

Realizations about nuclear fallout Silent Spring released in 1962, exposing how

DDT effects the food chain, ultimately causing cancer and genetic damage for humans

Cornerstone of the environmental movement Signed into law by President Nixon in 1969

to “encourage productive and enjoyable harmony between man and his environment”

National Environmental Policy ACT (NEPA)

Earth Day Celebration April 22, 1970

Resource Conservation and Recovery ACT (RCRA)

Enacted in 1976 and was focused on the management of hazardous waste in order to better protect human health and the environment

Cradle-to-grave management of waste and associated liability

Love Canal In the 1920s the short canal between the lower and upper

Niagara Rivers was used to bury 21,000 tons of toxic waste by Hooker Chemical Company

In 1953 the company sold the site to the Niagara Falls School Board for $1, with a deed detailing the presence of waste and including a liability limitation clause about the contamination

In the late ‘50s, about 100 homes and a school were built at the site

Investigations discovered a disturbingly high rate of miscarriages, birth-defect cases, unexplained illnesses, congenital malformations, high white blood cell counts and mental retardation

President Carter approved the first emergency funds ever to be approved for something other than a “natural” disaster

Hooker Chemical was found to be negligent in their waste disposal, though not reckless in the sale of the land, this became a test case for liability clauses

Comprehensive Environmental Response, Compensation and Liability ACT (CERCLA) Enacted in 1980 to cleanup the

contamination of hazardous waste sites around the country and avoid the creation of new ones

Liability is STRICT, JOINT AND SEVERAL

It is Retroactive Parties Liable under CERCLA:

current owners, prior owners, transporters, generators

U.S. Environmental Protection Agency (EPA)/RRP Rule:

Established accredited training and certification programs for workers, supervisors, inspectors and risk assessors conducting evaluation or abatement of lead-based paint.

Established requirements for pre-renovation education.Promulgated the Renovation, Repair, and Painting

Program Final Rule (RRP Rule).

History of the Environmental Movement and Cornerstone Regulations

Regulatory Impact

Due to legislation that was created in the 1970s and 80’s discharges to the environment were now being regulated and owners, operators, contractors and financial institutions were being held liable for environmental contamination

The frequency in pollution related claims caused the Insurance Industry to develop blanket exclusionary wording that was applied to all P&C policies by the mid 1970s

Today nearly all commonly sold commercial insurance policies contain an exclusion for pollution

It was not until the early 1980’s that the first monoline pollution insurance product became available.

There was all but one carrier that was providing the coverage and these policies were limited to risks such as: landfills, chemical manufacturers, asbestos contractors, and hazardous materials handlers.

Since those humble beginnings the pollution marketplace has evolved substantially

The CGL Pollution Exclusion

• Some coverage exists in that standard exclusion for very limited and specific circumstances, however, relying on the CGL policy for total pollution needs is not a good idea.

• Most carriers also replace the standard exclusion with a total pollution exclusion, plus asbestos, lead, mold and now silica.

• CPL policies have been written to extend similar coverage as would be present in the CGL form, but limited to damages from pollution conditions:

• Operational (ongoing & completed)• Contractual (assumed in a legal contract)

• Coverage is for Bodily Injury, Property Damage, or Environmental Damage caused by pollution incidents resulting from contracting operations

Who needs CPL coverage?

General, specialty and trade contractors who perform contracting services for a third party or hire subcontractors to perform services on their behalf.

It is a common misconception that contractors who aren’t performing environmentally related services don’t have any environmental exposure.

Who purchases pollution insurance?

• Carpentry• Demolition• Drilling• Electrical• General Contracting• Insulation• Painting• Plumbing • Restoration• Roofing• Street and Road• Utility

• Abatement• Remediation• Emergency Response• Landfill Contracting• Hazardous and Non-

Hazardous Hauling• Tank Installation,

Maintenance, Removal• Pipeline (sewer/water, natural

gas, oil)• Excavation/Grading• Flooring

• HVAC/mechanical• Landscaping• Steel erection• Weatherization• Masonry/concrete• Industrial cleaning• Etc.

Common Environmental Exposures for Contractors:

Disturbance and release of unknown hazardous building materials (lead based paint, asbestos)

Silt and sedimentation Severing unmarked or mismarked utility lines

and causing a release Indoor air quality issues (vapor intrusion, mold,

carbon monoxide, legionnaire’s disease) or leaks/releases of hazardous materials caused by construction defects or improper installation

Spills from transporting construction materials (asphalt) or hazardous materials used in contracting equipment (fuel, hydraulic fluid, etc.)

Disposal of construction and hazardous materials

CPL Policy Discussion

Coverage for these exposures can be:Blanket for all of the contractors operationsProject specific where required by contractOwner/Contractor Controlled Insurance Programs are available

Completed Operations:A form of insurance issued to various types of contractors. It covers a contractor’s liability for pollution conditions arising out of jobs or operations that have been completed

What is a pollution Incident?

The discharge, dispersal, release, seepage, migration, or escape of any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, hazardous substances, hazardous materials, electromagnetic fields, low level radioactive waste, medical waste and waste materials into or upon land, or any structure on land, the atmosphere or any watercourse or body of water, including groundwater.

Pollutants also include:

Lead and Asbestos Microbial Matter and Legionella

(Legionnaire’s Disease) Silt and Sedimentation Midnight Dumping Material exacerbation of contamination

Covers 1st party cleanup, 3rd party bodily injury/ property damage including defense costs

Cleanup includes: the reasonable and necessary expenses incurred for the investigation, monitoring, testing, removal, disposal, neutralization, or treatment of pollution conditions to the extent required by the law

Bodily injury includes: physical injury, sickness or disease sustained by any person, including death and medical monitoring resulting from any of these including mental anguish and emotional distress

Property damage includes: physical injury to, or destruction of tangible property, including all resulting loss of use of that property

Loss of use of tangible property that is not physically injured or destroyed but has been evacuated, withdrawn from use or rendered inaccessible because of a pollution condition

Diminution in value of tangible property and natural resource damage

Covers pollutants released during transportation (including loading and unloading) of vehicles to or from a job site

1st and 3rd Party carriers Differences to the Auto CA 9948

Not tied to an upset or overturn Provides additional coverage for

things such as NRD suits

Covers pollutants on at or migrating from Non-Owned Disposal Sites Protects against CERCLA liability

and Potentially Responsible Party suits from the Federal Government

Claim Examples

A Drywall Contractor was doing renovation work on a pre 1978 apartment building in NYC . He was not aware that lead based paint was present and caused a release arising out of his contracting operations resulting in property damage and bodily injury.

Defense Costs in excess of $250k Property Damage Costs in excess of $50kBodily Injury Costs in excess of $100k

Lowe’s Home Centers, one of the nation’s largest home improvement retailers, has agreed to implement a comprehensive, corporate-wide compliance program at its over 1,700 stores nationwide to ensure that the contractors it hires to perform work minimize lead dust from home renovation activities, as required by the federal Lead Renovation, Repair, and Painting (RRP) Rule, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.

The company will also pay a $500,000 civil penalty, which is the largest ever for violations of the RRP Rule

Advantages of pollution coverage for the Insured

Reduces and Quantifies Uncertainty Back up Indemnities Compliance with owner coverage specifications

Gregory SteinmanVice PresidentDirect: 908-300-5517Mobile: 917-597-4328Fax: 908-253-8503gsteinman@synapsellc.com

NY Corporate Headquarters New Jersey Georgia360 Erie Boulevard E. 198 West High Street 1055 Canton StreetSyracuse, NY 13202 Somerville, NJ 08876 Roswell, GA 30075

Thank You!

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