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Statement of Need: EPA is particularly concerned about dust lead hazards generated by renovations because children, especially younger children, are at risk for high exposures of lead-based paint dust via hand-to-mouth exposure. This rulemaking revision is being considered in response to a settlement agreement.

Summary of the Legal Basis: Section 402(c)(3) of the Toxic Substances Control Act (TSCA) requires EPA to regulate renovation or remodeling activities that create lead-based paint hazards in target housing, which is defined by statute to cover most pre-1978 housing, public buildings built before 1978, and commercial buildings. The work practice requirements for dust wipe testing and clearance, training, certification and accreditation requirements, and State, territorial, and tribal authorization provisions are being promulgated under the authority of TSCA sections 402(c)(3), 404, and 407 (15 U.S.C. 2682(c)(3), 2684, and 2687).

Alternatives: In addition to the proposed rule option, the Economic Analysis for the proposed rule analyzes several alternative options, including options with lower and higher thresholds (in terms of the amount of lead-based paint disturbed) for renovations that require dust wipe testing or clearance. See also the discussion in the preamble to the proposed rule at page 25058 et seq.

Anticipated Costs and Benefits: Benefits. The proposed rule is estimated to generate benefits by providing greater assurance that dust-lead hazards created by renovations are adequately cleaned up, primarily by requiring renovation firms to provide building owners and occupants with information on dust lead levels remaining in the work area after many renovation projects, but also by requiring renovation firms to demonstrate that they have achieved regulatory clearance levels after some of the dustiest renovations. These changes will protect individuals residing in target housing or attending a child-occupied facility where these renovation events are performed. It will also protect individuals who move into target housing after such a renovation is performed, or who visit a friend, relative, or caregiver’s house where such a renovation is performed. EPA has estimated the number of individuals residing in target housing units or attending COFs where renovation events are performed. The proposed rule will benefit 809,000 children under the age of 6 and 7,547,000 individuals age 6 and older (including 96,000 pregnant women) per year by minimizing their exposure to lead dust generated by renovations. The low threshold option would protect 882,000 children under the age of 6 and 8,193,000 individuals age 6 and older, including 105,000 pregnant women. The high threshold option protects 706,000 children and 6,590,000 individuals age 6 and older, including 83,000 pregnant women. The remaining three alternative options (dust wipe testing only, clearance only, and third party dust wipe testing) would affect the same number of individuals as the proposed rule, although the amount of protection provided to some of those individuals may differ from the proposed rule. Costs. Total annualized costs for the proposed rule are $272 million per year using a 3 percent discount rate and $293 million per year using a 7 percent discount rate. Under the low threshold option, costs are $312 million per year with a 3 percent discount rate and $336 million per year with a 7 percent rate. Under the high threshold option, costs are $224 million per year with a 3 percent discount rate and $242 million per year with a 7 percent discount rate. The option that only requires dust wipe testing costs $268 million per year with a 3 percent discount rate and $288 million per year with a 7 percent discount rate. The option requiring clearance for all renovations covered by the proposed rule costs $367 million with a 3 percent discount rate and $394 million with a 7 percent discount rate. The option requiring the use of a third-party for dust wipe sampling costs $431 million per year with a 3 percent discount rate and $459 million per year with a 7 percent discount rate. These cost estimates are based on the assumption that improved lead test kits would be available.

Risks: Lead is known for its "broad array of deleterious effects on multiple organ systems via widely diverse mechanisms of action." (EPA Air Quality Criteria for Lead, October 2006). This array of health effects includes heme biosynthesis and related functions; neurological development and function; reproduction and physical development; kidney function; cardiovascular function; and immune function. There is also some evidence of lead carcinogenicity, primarily from animal studies, together with limited human evidence of suggestive associations. Of particular interest to EPA during the RRP rulemaking was the delineation of lowest observed effect levels for those lead-induced effects that are most clearly associated with blood lead levels of less than 10 micrograms per deciliter in children and adults. See also the discussion in the preamble to the proposed rule at page 25039 et seq.