[Federal Register Volume 63, Number 104 (Monday, June 1, 1998)]
[Rules and Regulations]
[Pages 29908-29921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14437]



[[Page 29907]]

_______________________________________________________________________

Part XV





Environmental Protection Agency





_______________________________________________________________________



40 CFR Part 745



Lead; Requirements for Hazard Education Before Renovation of Target 
Housing; Final Rule

Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Rules 
and Regulations

[[Page 29908]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 745

[OPPTS-62131; FRL-5751-7]
RIN 2070-AC65


Lead; Requirements for Hazard Education Before Renovation of 
Target Housing

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This rule requires certain persons who perform renovations of 
target housing (as defined under 40 CFR 745.103) for compensation to 
provide a lead hazard information pamphlet to owners and occupants of 
such housing prior to commencing the renovation, as stipulated by 
section 406(b) of the Toxic Substances Control Act. In addition, this 
rule requires notification on the nature of the renovation activities 
in certain circumstances involving multi-family housing. This rule 
ensures that owners and occupants of target housing are provided 
information concerning potential hazards of lead-based paint exposure 
before certain renovations are begun on that housing. In addition to 
providing general information on the health hazards associated with 
exposure to lead, the lead hazard information pamphlet advises owners 
and occupants to take appropriate precautions to avoid exposure to 
lead-contaminated dust and lead-based paint debris that are sometimes 
generated during renovations. The Agency believes that the distribution 
of the pamphlet will help to reduce the exposures which cause serious 
lead poisonings, especially in children under age 6, who are 
particularly susceptible to the hazards of lead. This rule was proposed 
in the Federal Register of March 9, 1994.

DATES: The requirements in this final rule shall take effect on June 1, 
1999. In accordance with 40 CFR 23.5, this rule shall be promulgated 
for purposes of judicial review at 1 p.m. Eastern Daylight Savings Time 
on June 1, 1998.

FOR FURTHER INFORMATION CONTACT: For general information or to obtain 
copies of the final rule (or other documents mentioned as available in 
this rule), contact the National Lead Information Clearinghouse at 1-
800-424-LEAD. For technical information contact: Dayton Eckerson, 
National Program Chemicals Division (7404), Office of Pollution 
Prevention and Toxics, Environmental Protection Agency, 401 M St., SW., 
Washington, DC 20460, Telephone: 202-260-1591, e-mail: 
<a href="/cdn-cgi/l/email-protection#a3c6c0c8c6d1d0cccd8dc7c2dad7cccde3c6d3c28dc4ccd5"><span class="__cf_email__" data-cfemail="680d0b030d1a1b0706460c09111c0706280d1809460f071e">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Regulated Entities

    Potentially regulated entities under this rule are any person(s) 
who perform renovations of target housing for compensation. Target 
housing is defined (see 40 CFR 745.103) as any housing constructed 
prior to 1978, except housing for the elderly or persons with 
disabilities (unless any child who is less than 6 years of age resides 
or is expected to reside in such housing) or any 0-bedroom dwelling 
pursuant to 40 CFR 745.103. Regulated categories and entities include:

                                                                        
------------------------------------------------------------------------
                Category                  Examples of Regulated Entities
------------------------------------------------------------------------
Renovators                                <bullet> General Building     
                                           Contractors/Operative        
                                           Builders [Renovation firms,  
                                           Individual Contractors, etc.]
                                          <bullet> Special Trade        
                                           Contractors [Carpenters,     
                                           Painters, Drywall workers and
                                           lathers, ``Home Improvement''
                                           Contractors, etc.]           
------------------------------------------------------------------------
Multi-family Housing                      Property Management Firms     
------------------------------------------------------------------------
Owners/Managers                           Some Landlords                
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. Other types of entities not listed in this table could also be 
regulated. To determine whether you or your business is regulated by 
this action, you should carefully examine the applicability provisions 
in Sec. 745.82 of the rule. If you have any questions regarding the 
applicability of this action to a particular entity, consult the person 
listed in the ``FOR FURTHER INFORMATION CONTACT'' section.

II. Authority

    This final rule is issued under the authority of section 406(b) of 
the Toxic Substances Control Act (TSCA), 15 U.S.C. 2686(b). In 1992, 
TSCA was amended by section 1021 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992 to add Title IV, entitled Lead Exposure 
Reduction. The Residential Lead-Based Paint Hazard Reduction Act is 
also referred to as Title X of the Housing and Community Development 
Act of 1992, Pub. L. 102-550.

III. Background

A. Legislative and Statutory Background

    Congress passed Title X to address the need to control exposure to 
lead-based paint hazards. Title X establishes the infrastructure and 
standards necessary to reduce lead-based paint hazards in housing. 
Congress recognized that lead poisoning is a particular threat to 
children under age 6, and emphasized the needs of this vulnerable 
population within the various sections of Title X. Section 1021 of 
Title X amends TSCA (15 U.S.C. 2601, et seq.) by adding a Title IV, 
entitled ``Lead Exposure Reduction.''
    This rule is issued under the authority of section 406(b) of Title 
IV of TSCA, and is intended to provide information to owners and 
occupants of target housing that will allow these individuals to avoid 
exposure to lead-contaminated dust and lead-based paint debris which 
are sometimes generated during renovations of housing with lead-based 
paint. Since children under the age of 6 are especially susceptible to 
the hazards of lead, those owners and occupants with children can take 
action to protect their children from lead poisonings. Section 406(b) 
requires EPA to promulgate regulations requiring certain persons who 
perform renovations of target housing for compensation to provide a 
lead hazard information pamphlet (developed under section 406(a) of 
TSCA) to the owner and occupant of such housing prior to commencing the 
renovation. Target housing is defined in section 401(17) of TSCA, 15 
U.S.C. 2681. Those who fail to provide the pamphlet as required may be 
subject to both civil and criminal sanctions under section 16 of TSCA.
    This regulation represents one piece of a broad range of 
interrelated lead exposure reduction activities mandated under Title X. 
Many of these activities supported and affected the development of the 
section 406(b) regulations. Below is a discussion of several related 
provisions of Title X which provide the context for many of the 
decisions made during the development of this rule.
    The provision most closely tied to section 406(b) is section 406(a) 
of TSCA. Section 406(a) directs EPA to develop and publish, after 
notice and comment, an information pamphlet on lead and the hazards of 
exposure to lead-based paint in the home. The Consumer Product Safety 
Commission (CPSC) joined EPA in co-sponsoring the pamphlet's 
development in consultation with the Department of Housing and Urban 
Development (HUD) and the Centers for Disease Control and

[[Page 29909]]

Prevention (CDC). EPA issued a draft of the pamphlet for public review 
on March 9, 1994 (59 FR 11119) (FRL-4642-7). After addressing comments 
received from the public and other Federal Agencies, EPA announced the 
final pamphlet's availability in the Federal Register of August 1, 1995 
(60 FR 39167) (FRL-4966-6).
    In addition to outlining the health effects and symptoms of lead 
exposure, section 406(a) requires that this pamphlet: Contain 
information on the potential hazards of renovating dwellings containing 
lead-based paint; recommend that an inspection or risk assessment for 
lead-based paint be performed before beginning renovations in target 
housing; suggest precautionary measures for protecting occupants during 
renovations in homes containing lead-based paint; and identify Federal, 
State, and local sources of information on lead and lead-based paint.
    Two sections of Title X also require the dissemination of the lead 
hazard information pamphlet developed pursuant to section 406(a) of 
TSCA. First, section 1018 of Title X requires EPA and HUD to promulgate 
joint regulations for disclosure of certain information concerning 
lead-based paint and lead-based paint hazards by persons offering to 
sell or lease target housing. The section 1018 regulations include the 
requirement that the sellers and lessors provide the lead hazard 
information pamphlet to prospective purchasers or lessees. EPA and HUD 
issued the final regulations implementing section 1018 in the Federal 
Register of March 6, 1996 (61 FR 9064) (FRL-5347-9).
    Second, section 1012 amends section 302 of the Lead-Based Paint 
Poisoning Prevention Act (42 U.S.C. 4822) to require that the lead 
hazard information pamphlet be provided to purchasers and tenants of 
housing receiving assistance under a program administered by the 
Secretary of HUD, or otherwise receiving more than $5,000 in project-
based assistance under a Federal housing program. HUD issued the 
proposed section 1012 rule on June 7, 1996 (61 FR 29170) (FRL-3482-P-
01).
    Under section 403 of TSCA, EPA is charged with refining the general 
definitions of ``lead-based paint hazards,'' ``lead-contaminated 
dust,'' and ``lead-contaminated soil'' which are listed in section 401 
of TSCA. On September 11, 1995 (60 FR 47248) (FRL-4969-6), EPA issued 
an interim guidance document for risk assessors and managers to aid in 
the identification and prioritization for control of lead hazards until 
the final section 403 definitions are issued. EPA is currently in the 
process of developing the section 403 definitions.
    EPA has developed this rule to function independently of the lead 
hazard definitions to be developed under section 403. Under this final 
rule, EPA has eliminated the linkage of the definition of 
``renovation'' to whether or not lead-based paint hazards are expected 
to occur as a result of the renovation activity. Instead, the 
definition of ``renovation'' has been simplified to focus on activities 
that disturb painted surfaces in target housing. It is discussed 
further in Unit V.D. of this preamble. Therefore, this rule under 
section 406(b) would require renovators to perform pre-renovation 
notification for all renovation activities performed for compensation 
in target housing, unless specifically exempted by Sec. 745.82 of the 
regulatory text.
    Section 402(a) of TSCA directs EPA (in consultation with HUD, the 
Department of Labor, and the Department of Health and Human Services 
(HHS)) to promulgate regulations on accreditation of training programs 
and the certification of individuals and contractors engaging in lead-
based paint activities. Section 402(a) also requires that EPA, in 
consultation with the aforementioned agencies, develop standards for 
the performance of lead-based paint activities (including lead 
inspections and risk assessments). EPA issued the proposed section 402 
rule on September 2, 1994 (59 FR 45872) (FRL-4633-9), and the final 
rule on August 29, 1996 (61 FR 45778) (FRL-5389-9).
    Section 402(c)(1) of TSCA directs EPA to issue guidelines for the 
conduct of renovation and remodeling activities which may create a risk 
of exposure to dangerous levels of lead when performed in target 
housing, public buildings constructed before 1978, and commercial 
buildings. EPA released its final guidelines for renovation and 
remodeling, entitled Reducing Lead Hazards When Remodeling Your Home in 
April 1994 (revised in September 1997), and has made the guidelines 
available through the National Lead Information Clearinghouse (NLIC).
    Section 402(c)(2) of TSCA directs EPA to conduct a study of the 
lead hazards generated during different types of renovation and 
remodeling activities. Section 402(c)(3) of TSCA directs EPA to use the 
results of the renovation study, along with other information, to 
determine which renovation and remodeling activities should be 
regulated as lead-based paint activities, based on potential hazards 
generated during their performance.
    Section 404 of TSCA directs EPA to develop an application process 
for those States (which EPA has interpreted to include Tribes) that 
seek to administer and enforce the standards, regulations, and 
requirements established under sections 402 and 406. Section 404 also 
directs EPA to develop and issue a Model State Program for use by 
States and Tribes pursuing authorization under these provisions. EPA 
proposed the authorization process and the Model State Program for 
States and Tribes, in conjunction with the proposed rule for section 
402, in the September 2, 1994 Federal Register. The section 404 rule 
was also published on August 29, 1996, in final form.
    Pursuant to section 1015 of Title X, HUD established a Task Force 
on Lead-Based Paint Hazard Reduction and Financing made up of private 
and public organizations. The Task Force, representing the spectrum of 
interests affected by the lead-based paint issue, released final 
recommendations on evaluating and reducing lead-based paint hazards in 
private housing on July 11, 1995, in a report entitled Putting the 
Pieces Together: Controlling Lead Hazards in the Nation's Housing 
(Copies of this report can be acquired by contacting the NLIC at 1-800-
424-LEAD). These recommendations have been considered in the 
development of this final rule.
    Pursuant to section 1017 of Title X, HUD, in cooperation with EPA 
and other Federal agencies, has revised its guidelines for lead-based 
paint hazard evaluation and reduction activities. The revised document, 
entitled Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing, was released to the public in June 1995. A copy of 
the guidelines is included in the public record for this rule.

B. Lead Poisoning in the United States

    Lead affects virtually every system of the body. While it is 
harmful to individuals of all ages, lead exposure can be especially 
damaging to children, fetuses, and women of childbearing age. As recent 
studies have identified previously unrecognized effects, there has been 
increasing concern about blood-lead levels once thought to be safe. 
Since 1978, CDC has lowered the blood-lead level of concern from 60 
<greek-m>g/dL (micrograms/deciliter) to 10 <greek-m>g/dL (Ref. 2).
    Lead poisoning has been called ``the silent disease'' because its 
effects may occur gradually and imperceptibly, often showing no obvious 
symtoms. Chronic blood-lead levels as low as 10 <greek-m>g/dl have been 
associated with learning disabilities, growth

[[Page 29910]]

impairment, permanent hearing and visual impairment, and other damage 
to the brain and nervous system. In large doses, lead exposure can 
cause blindness, brain damage, convulsions, and even death. Lead 
exposure before or during pregnancy can also alter fetal development 
and cause miscarriages.
    In 1991, the Secretary of HHS characterized lead poisoning as the 
``number one environmental threat to the health of children in the 
United States'' (Ref. 2). The percentage of children under 6 years of 
age with elevated blood-lead levels has declined over the last 20 
years. Recent results from the Third National Health and Nutrition 
Examination Survey (NHANES III, Phase 2) indicate that the average 
child's blood-lead level has declined from 12.8 <greek-m>g/dL to 2.7 
<greek-m>g/dL (Ref. 9a). However, about 800,000 children under the age 
of 6 (4.2% of children at that age) still had blood-lead levels above 
CDC's 10 <greek-m>g/dL level of concern (Refs. 9 and 9b).

C. Hazards From Past Uses of Lead-Based Paint

    Efforts to reduce exposure to lead from sources like gasoline and 
food cans have played a large role in the past reductions of blood-lead 
levels in the United States. Despite these successes, a significant 
human health hazard remains due to improperly managed lead-based paint. 
From the turn of the century through the 1940's, paint manufacturers 
used lead as a primary ingredient in many oil-based interior and 
exterior house paints. Usage gradually decreased through the 1950's and 
1960's, as largely lead-free latex paints became more popular. Although 
CPSC banned lead-based paints from residential use in 1978 (currently, 
paints may not have greater than 0.06% lead by weight (Ref. 3)), EPA 
and HUD estimate that 83% of the privately-owned housing units built in 
the United States before 1980 contain some lead-based paint. By these 
estimations, approximately 64 million homes contain lead-based paint 
which may pose a hazard to the occupants (Ref. 4).
    Lead from exterior house paint can flake off or leach into the soil 
around the outside of a home, contaminating children's playing areas. 
Dust caused during normal lead-based paint wear (especially around 
windows and doors) can create an imperceptible film over surfaces in a 
house. In some cases, cleaning and renovation activities can increase 
the threat of lead-based paint exposure by dispersing fine lead dust 
particles into the air and over accessible household surfaces. If dust 
is managed improperly, both adults and children could receive hazardous 
exposures to lead by inhaling the fine dust or by ingesting paint-dust 
during hand-to-mouth activities. Children under age 6 are especially 
susceptible to lead poisoning (Ref. 2).

IV. Summary of Proposed Rule and Public Comments

    On March 9, 1994 (59 FR 11108), EPA issued proposed regulations 
that would require renovators to provide a lead hazard information 
pamphlet to owners and occupants of target housing before beginning 
renovations, and notification on the nature of the renovation 
activities in certain circumstances involving multi-family housing. The 
housing that EPA proposed to cover by the regulation included all 
housing built before 1978 with the exception of 0-bedroom dwellings and 
housing for the elderly and persons with disabilities wherein no child 
under 6 years of age resides or is expected to reside. EPA's proposal 
provided flexibility for renovations conducted in common areas (like 
stairways, lobbies, and hallways) of buildings. EPA requested comments 
concerning the proposed rule, specifically on the definition of 
``renovation'' and identifying renovation activities that should be 
covered under the rule.
    By the close of the comment period, May 9, 1994, EPA had received 
30 comments. The largest number of responses was received from public 
health and environmental protection departments (27% of the responses) 
and organizations involved with building and development (27% of the 
responses). Other commenters included representatives from advocacy 
groups (23% of the responses) and the real estate industry (10% of the 
responses). Approximately 10% of the responses came from a combination 
of Federal agencies, State agencies, and concerned private citizens. A 
summary of all comments received, and EPA's responses, may be found in 
the Response to Comments document which is available for public review 
in the TSCA Docket for this rulemaking (see Unit VIII. of this 
preamble). The paragraphs that follow briefly describe some of the key 
concerns that were raised by the commenters.
    The majority of the comments received concerned the term 
``renovation.'' Commenters requested clarification so as to 
differentiate between work that would be considered renovation and that 
categorized as repair and maintenance. Concerns were expressed 
regarding flexibility in addressing emergency situations where the need 
for a rapid response conflicted with the ability to provide the 
pamphlet to the owner and occupant of the target housing to be 
renovated. Over half of the comments concerning renovation specifically 
addressed the proposed alternative approaches for defining renovations: 
modeling the definition after the asbestos program, listing specific 
activities of concern, using the Occupational Safety and Health 
Administration (OSHA) list of construction activities, identifying 
specific job classifications, identifying specific cost ranges, or 
specifying the size of the home improvement activity.
    Numerous comments concerned other definitions in the proposed rule 
such as ``person,'' ``lead-based paint hazard,'' and ``target 
housing.'' Commenters also addressed the proposed rule's applicability 
to multi-family housing, the actual mechanisms for pamphlet 
distribution, and the corresponding acknowledgment requirement. A few 
comments concerned the burden of the rule on the regulated industry, 
the overall scope of the rule, and its projected cost.
    EPA received no comments on the section of the rule establishing a 
procedure for the submission of confidential business information.

V. Final Rule Provisions

    In light of the public's comments, the Agency has striven to ensure 
that this rule is clear, understandable, flexible, achieves the 
statutory objective while imposing the minimum burden, and is 
consistent with other Federal activities. These goals are important to 
assure quick and widespread implementation of and compliance with the 
rule.

A. Scope and Purpose

    The scope, purpose, and applicability sections of the rule have 
been modified to more clearly reflect who is responsible for providing 
lead hazard information, who is to receive this information, the nature 
of that information, and the rule's authority.

B. Date of the Rule

    EPA received a comment suggesting that the effective date of the 
rule be immediate. However, EPA believes that the rule's effective 
implementation requires an informed and prepared general public and 
regulated community. EPA has concluded that a phase-in period of 1 year 
is necessary to provide adequate time for parties to become familiar 
with the rule requirements and to set up procedures for compliance.

[[Page 29911]]

C. Applicability

    EPA requested comments on six approaches being considered for 
describing the activities encompassed by the term ``renovation.'' Most 
of the numerous comments received on this topic requested further 
clarification and additional guidance in determining which types of 
home improvement, maintenance, and repair activities would be 
classified as renovations for purposes of the rule. Commenters 
requested more specific criteria to facilitate differentiation between 
a renovation activity and routine maintenance or repair. One commenter 
suggested that modeling the definition of regulated activities under 
this rule after EPA's Asbestos Program (which used both the Standard 
Industrial Classification (SIC) codes and the OSHA list of construction 
tasks) would result in the inclusion of too broad a range of 
activities.
    Based on the responses received from commenters, EPA determined 
that both the SIC codes and the OSHA list of construction tasks lacked 
the specificity necessary to aid EPA in developing its list of 
regulated renovation activities. The OSHA list was developed to address 
a far broader range of construction tasks than should be regulated 
under section 406(b); likewise, using SIC codes as a way of creating 
worker categories was determined to be inadequate in capturing the 
appropriate spectrum of activities.
    In general, commenters also suggested that neither cost nor the 
overall size of the work was a valid criterion for determining exposure 
to lead-based paint hazards and indicating risk. EPA agrees, and has 
also determined that a de minimis cost level would be difficult to 
interpret, especially when compensation was provided in non-monetary 
terms or when such activities were part of a larger service or 
maintenance agreement.
    After careful review of the comments on these proposed approaches, 
EPA has decided to define renovation by focusing on the potential 
disruption of paint (the key source of exposure that may occur during 
renovation). One commenter voiced specific concerns that the proposed 
approach to defining renovation was too broad and suggested that EPA 
focus on activities that are likely to generate a risk of lead 
exposure. In response to that and other comments, EPA modified the 
definition to include all renovation activities except those which do 
not disturb painted surfaces.
    EPA recognizes that it is necessary to distinguish between 
renovation activities and those minor activities that are required 
during the maintenance of a residence. EPA believes that requiring 
maintenance workers to distribute hazard information during the 
implementation of regular tasks would pose an undue burden on owners 
and their staffs. A 2 square foot per component de minimis level has 
been adopted from the June 1995 Guidelines for the Evaluation and 
Control of Lead-Based Paint Hazards in Housing as a means of 
differentiating between large-scale renovation activity and minor 
maintenance activities which pose a lower likelihood of creating a lead 
hazard. This same de minimis level has also been used by the National 
Institute of Building Sciences (NIBS) in its draft Regulatory Models 
for Lead Poisoning Prevention report. This draft report is the result 
of a consensus process involving both public (e.g., Federal and State 
governments) and private (e.g., landlord associations, builders) 
sectors. EPA believes that this revised definition provides a common 
sense approach which is consistent with standard industry practices (as 
captured in the aforementioned guidelines and the de minimis level's 
use in the NIBS report), along with clear guidance and direction to the 
regulated community, as to which renovation activities will trigger the 
requirements of this rule.
    EPA recognizes that emergency situations occur which require 
renovation activities to be conducted within a time frame precluding 
advance notification. Such emergencies would typically involve 
structural or equipment failure that could lead to endangerment to 
public health or substantial property damage if not repaired 
immediately. To address these situations, EPA has included a category 
of Emergency renovation operations (see Sec. 745.83 of the regulatory 
text) that are exempted from the requirements of this rule.
    In addition, EPA has exempted renovations performed (in target 
housing) on components that have been determined, by an inspector 
(certified pursuant to either Federal regulations at 40 CFR 745.226 or 
an EPA-authorized State certification program), to be free of paint or 
other surface coatings that contain lead equal to or in excess of 1.0 
milligram per square centimeter or 0.5 percent by weight (see 
Sec. 745.82(b)(3) of the regulatory text).

D. Definitions

    EPA received many comments that suggested the definitions used for 
this rule retain full consistency with existing State, local, and 
industry practice. Below is a brief discussion of definitions that 
apply to this rule. While these definitions were included in the 
proposed rule, most have since been promulgated as part of related 
rulemakings under Title X and Title IV of TSCA. Only the definitions of 
``emergency renovation operations,'' ``pamphlet,'' ``person,'' 
``renovation,'' and ``renovator'' are promulgated in this rule. 
However, all definitions that were proposed for use in this rule are 
discussed below.
    Common area means a portion of a building generally accessible to 
all residents/users, including, but not limited to, hallways, 
stairways, laundry and recreational rooms, playgrounds, community 
centers, and boundary fences.
    This definition is unchanged from the proposed rule and can be 
found in 40 CFR 745.103. Although EPA received a comment suggesting to 
limit the definition, EPA has decided to retain the definition of 
common area also being used in other regulations mandated by Title X 
and Title IV of TSCA. These other regulations require a broader 
interpretation of the term (e.g., the inclusion of residence exteriors 
within the term's scope), and for consistency, EPA elected to adopt a 
single definition for all the rules. EPA has concluded that this 
discussion of the term's broad interpretation should sufficiently 
address commenter requests for an explicit inclusion of renovation work 
being performed upon a residence's exterior surfaces and surfaces in 
proximity to the residence within the rule's notification requirements.
    However, because today's rule affects only residential housing, 
applicability of the definition for section 406(b) purposes is limited 
to common areas in residential housing.
    Emergency renovation operations means renovation activities, such 
as operations necessitated by non-routine failures of equipment, that 
were not planned but result from a sudden, unexpected event that, if 
not immediately attended to, presents a safety or public health hazard, 
or threatens equipment and/or property with significant damage.
    In the March 9, 1994 proposal, EPA specifically requested comment 
on whether the rule should include provisions for emergency renovations 
and other situations where unusual circumstances necessitated immediate 
action. EPA received a comment indicating that this definition was too 
broad. The commenter argued that only catastrophic situations such as 
fire, explosion, or imminent structural collapse required a response so 
prompt

[[Page 29912]]

as to preclude notification and that this exemption would be subject to 
abuse. EPA does not believe that emergency renovation activities are 
defined only by life-threatening situations. To ensure that the 
regulation does not unduly impair a property owner or manager's ability 
to react quickly to situations that present a sudden hazard to public 
safety or a sudden threat of significant property damage, EPA has added 
a specific exemption for emergency renovations and has provided the 
above definition. EPA has based its definition on the language used 
within EPA's National Emission Standards for Hazardous Air Pollutants 
(Asbestos) (40 CFR part 61, subpart M).
    Multi-family housing means a housing property consisting of more 
than four dwelling units.
    This definition is unchanged from the proposed rule. EPA received a 
comment suggesting that either this definition be changed to 
accommodate housing consisting of two, three, and four dwelling units, 
or that a definition covering that number of units be created. EPA may 
propose and seek comment on such a modification in the near future.
    Owner means any entity that has legal title to target housing, 
including but not limited to individuals, partnerships, corporations, 
trusts, government agencies, housing agencies, Indian tribes, and 
nonprofit organizations, except where a mortgagee holds legal title to 
property serving as collateral for a mortgage loan, in which case the 
owner is considered the mortgagor.
    EPA received a comment on the proposed definition's inclusion of 
third party managers or representatives. The commenter asserted that 
since management agreements between owners and third parties clearly 
establish that the responsibility for all property decisions reside 
with the owners, owners should be clearly differentiated from third 
party fee property managers. EPA agrees with the commenter. For the 
sake of consistency with section 1018 of the Residential Lead-Based 
Paint Hazard Reduction Act, EPA has revised the definition (see 40 CFR 
745.103) of owner to clarify its applicability to trusts and to 
distinguish between owners (mortgagor) and mortgage lenders 
(mortgagees). The definition was also revised by removing the 
representative portion.
    Pamphlet means the EPA pamphlet developed under section 406(a) of 
TSCA for use in complying with this and other rulemakings under Title 
IV of TSCA and the Residential Lead-Based Paint Hazard Reduction Act, 
or any State or Tribal pamphlet approved by EPA pursuant to 40 CFR 
745.326 that is developed for the same purpose. This includes 
reproductions of the pamphlet when copied in full and without revision 
or deletion of material from the pamphlet (except for the addition or 
revision of State or local sources of information).
    EPA added this definition to specify and identify either the lead 
hazard information pamphlet developed under section 406(a) of TSCA or 
any EPA-approved State pamphlet.
    Person means any natural or judicial person including any 
individual, corporation, partnership, or association; any Indian Tribe, 
State or political subdivision thereof; any interstate body; and any 
department, agency, or instrumentality of the Federal Government.
    EPA received several comments on this definition regarding whether 
the sovereign immunity of the United States is waived in relation to 
this rule. Congress provided such a waiver in section 408 of TSCA. EPA 
modified this definition so that it is consistent with the definition 
promulgated in Sec.  745.223.
    Renovation means the modification of any existing structure, or 
portion thereof, that results in the disturbance of painted surfaces, 
unless that activity is performed as part of an abatement as defined by 
this part (40 CFR 745.223). The term renovation includes (but is not 
limited to): the removal or modification of painted surfaces or painted 
components (e.g., modification of painted doors, surface preparation 
activity (such as sanding, scraping, or other such activities that may 
generate paint dust)); the removal of large structures (e.g., walls, 
ceiling, large surface replastering, major re-plumbing); and window 
replacement.
    EPA requested and received many comments on the proposed 
definition. EPA agrees with the commenters who stated that the proposed 
definition did not provide adequate guidance in defining a regulated 
transaction. EPA has, therefore, revised the definition to remove the 
unclear references to hazard levels involved in the activities, 
believing that it is not appropriate to expect each potential renovator 
to determine what is and what is not a ``hazardous'' activity. Instead, 
EPA has developed a definition that focuses on disturbance of paint, 
the key source of exposure that may occur during renovations.
    Further, EPA has added an applicability section (Sec. 745.82) that 
lists activities that are excluded. This section excludes emergency 
renovations and renovation activities that pose little likelihood of 
creating lead hazards. The specifically excluded activities are: minor 
repair and maintenance activities (including minor electrical work and 
plumbing) that disrupt 2 square feet or less of painted surface per 
component; emergency renovation operations; and renovations in target 
housing in which a written determination has been made by an inspector 
(certified pursuant to either Federal regulations at Sec. 745.226 or an 
EPA-authorized State certification program) that lead-based paint is 
not present in the area affected by the renovation, where the renovator 
has obtained a copy of the determination.
    EPA believes that the definition, coupled with the list of excluded 
activities in the applicability section, provides the regulated 
community with a clearer direction than that provided in the proposed 
rule. EPA also thinks that the definition and applicability sections 
enable this rule to cover all potentially hazardous renovation 
activities and exclude those that pose little likelihood of disturbing 
significant amounts of painted surface.
    Renovator means any person who performs for compensation a 
renovation.
    This definition was changed from the proposed rule by deleting the 
phrase ``of target housing or public buildings'' which appeared after 
the term ``renovation.'' This change makes the term ``renovator'' 
consistent with the term ``renovation,'' which is not limited to 
particular types of structures. Further, because future rules issued 
pursuant to section 402(c) of TSCA may apply, regulations promulgated 
under section 402(a) to renovation and remodeling in target housing, 
public buildings constructed before 1978, and commercial buildings, EPA 
believes the terms ``renovation'' and ``renovator'' should be defined 
in such a way that they can apply to all such structures. This change 
does not affect the scope or applicability of the rule, because the 
applicability provision at Sec. 745.82 of the rule will limit the rule 
to renovations of target housing performed for compensation. Finally, 
as discussed in the proposal, although EPA considers that maintenance 
staff retained by the owners of buildings may be considered renovators 
for the purpose of this rule, an exclusion for routine maintenance and 
operations activities is provided in the applicability section of the 
rule.
    Residential dwelling means:
    (1) A single-family dwelling, including attached structures such as 
porches and stoops; or
    (2) A single-family dwelling unit in a structure that contains more 
than one separate residential dwelling unit, and in which each such 
unit is used or occupied, or intended to be used or occupied, in whole 
or in part, as the

[[Page 29913]]

home or residence of one or more persons.
    This definition, drawn from the statute, is unchanged from the 
proposal (see 40 CFR 745.103).
    Target housing means any housing constructed prior to 1978, except 
housing for the elderly or persons with disabilities (unless any child 
who is less than 6 years of age resides or is expected to reside in 
such housing) or any 0-bedroom dwelling.
    This definition was provided by the statute and is unchanged (see 
40 CFR 745.103).
    0-Bedroom dwelling means any residential dwelling in which the 
living area is not separated from the sleeping area. The term includes 
efficiencies, studio apartments, dormitory housing, military barracks, 
and rentals of individual rooms in residential dwellings.
    This definition, which can be found in 40 CFR 745.103, is drawn 
from the HUD 1994 housing survey, as a standard definition for 0-
bedroom housing. It was added to this rule to provide both 
clarification of the term as it is used in the definition of target 
housing and consistency with the other regulations under Title X and 
TSCA.

E. Lead Hazard Information Pamphlet

    In the August 1, 1995 Federal Register, EPA issued a Notice of 
Availability for the lead hazard information pamphlet entitled Protect 
Your Family From Lead In Your Home. EPA and HUD will distribute this 
pamphlet under several Congressional directives that will be 
implemented in separate rulemaking initiatives, including this rule.
    The pamphlet has been made available to the general public as well 
as the regulated community. Single copies of the pamphlet are available 
in both English and Spanish from the NLIC, by calling 1-800-424-LEAD 
(TDD 1-800-526-5456). Multiple copies are available through the 
Government Printing Office (GPO), and may be ordered by calling the GPO 
Order Desk at (202) 512-1800, faxing (202) 512-2233, or writing to 
Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-
7954. Request the publication by title, Protect Your Family From Lead 
in Your Home, and/or GPO stock #055-000-00507-9.
    The pamphlet may be reproduced without permission from EPA or CPSC. 
EPA is encouraging persons to make their own reproductions of the 
pamphlet. Persons who wish to reprint the pamphlet may obtain negatives 
or black and white reproducible copy from the NLIC at 1-800-424-LEAD. 
Any copies reproduced for use in complying with this rule, however, 
must be copied in full, and may not be revised in any way unless those 
actions are meant to add or properly reference State or local sources 
of information. Also, persons wishing to reprint the pamphlet may 
attach their company name, logo, and contact information on the back 
cover in the space provided at the bottom of the page.
    In addition, EPA has developed a program under section 404 of TSCA 
in which States and Tribes may apply to EPA for authorization to 
develop and distribute their own pamphlets for compliance with this 
rule. That program now allows States and Tribes that have obtained such 
authorization to substitute the State-developed pamphlet for the 
Federal version for compliance with this rule. EPA provided preliminary 
approvals for pamphlet substitutions to the States of California and 
Massachusetts in August 1996.
    This is a change from the proposed section 406(b) rulemaking. The 
section 406(b) proposal included language preventing State and Tribal 
modification of the pamphlet. EPA has since concluded that States and 
Tribes should be able to craft their own pamphlets so long as they 
include a number of basic elements.
    In anticipation of this change, EPA included specific language in 
the preamble to the section 404 rule (under Unit I.X.) that was 
published August 29, 1996 (see FR 45802, 45803). That unit describes 
the minimum elements that must be present in a State or Tribal program 
in order for that State or Tribe to receive authorization from EPA (see 
40 CFR 745.326). The unit also acknowledges the need for flexibility in 
the amount of detail and supplemental information to be included in a 
pamphlet for State or Tribal use. EPA has concluded that this 
flexibility is required due to the variety of particular, local 
informational and communication challenges that States and Tribes may 
face.
    This change makes the section 406(b) program consistent with the 
rest of the lead program under Titles IV and X. This change also gives 
renovators a greater amount of flexibility; now renovators may choose 
between disseminating the EPA pamphlet or pamphlets crafted pursuant to 
section 404 (40 CFR 745.326).
    EPA received comments concerning the pamphlet emphasizing that both 
it and the acknowledgment need to be available in languages other than 
English. As noted above, EPA concurred and has made the pamphlet 
available in Spanish. However, it was not considered reasonable to 
require the renovator to provide translations into any language 
requested by the resident, nor does EPA have the resources to 
unilaterally develop, print, and distribute the pamphlet in every 
language represented in the United States. EPA is pursuing the 
feasibility of obtaining additional translations through public and 
private partnerships. Several private organizations are in the midst of 
developing the pamphlet in languages other than Spanish and English. If 
you have any questions concerning those efforts, consult the parties 
listed in the ``FOR FURTHER INFORMATION CONTACT'' section.

F. Information Distribution Requirements

    1. Renovations in living units. EPA's modifications of the proposed 
information distribution requirements provide the regulated community 
with flexibility while ensuring appropriate communication with owners 
and occupants whose living units are undergoing renovations. Commenters 
expressed concerns about the proposed provision regarding the 
feasibility of requiring a signed acknowledgment from the ``head of a 
household,'' noting that it could be extremely difficult to locate or 
guarantee accurate identification of such an individual. In the final 
rule, EPA permits any adult occupant of an affected target housing unit 
to acknowledge receipt of the pamphlet.
    A second concern involved using the acknowledgment of the receipt 
of the pamphlet as an indication of the owner or occupant's awareness 
of the potential health hazards associated with renovations that 
disturb lead-based paint. Commenters indicated that a person who has 
just received a pamphlet would not have had time to read it. He or she 
could not realistically be expected to attest to any level of 
comprehension of the potential risks. EPA revised the final rule to 
focus solely on acknowledging receipt of the pamphlet.
    2. Delivery requirements. EPA received numerous comments regarding 
this section. A prevalent comment expressed concern with requiring the 
renovator to obtain a signed acknowledgment. Commenters suggested 
scenarios of owners and occupants refusing to sign the acknowledgment 
or being unavailable during normal business hours, when such deliveries 
would typically occur. Commenters stated that holding the renovator 
accountable for such actions beyond his or her control was 
inappropriate.

[[Page 29914]]

    After careful consideration, and in keeping with the goal of 
allowing flexibility where appropriate, the final rule allows the 
renovator several options for distributing the pamphlet, including 
personal delivery by the renovator or a designated representative, 
self-certification for unsuccessful attempted personal deliveries, and 
the option to mail the pamphlet.
    The final rule permits either the renovator or a designated 
representative (such as a landlord) to deliver the pamphlet and obtain 
the acknowledgment. However, when using a designated representative, 
the renovator remains responsible for compliance with this rule. This 
provides renovators with additional flexibility with regard to 
delivery, but still ensures that they retain the responsibility for 
compliance with the rule and maintaining the appropriate records. EPA 
also recognizes that there may be situations when an adult occupant 
cannot be reached or simply refuses to sign an acknowledgment. Under 
these circumstances, the renovators, or their designee, will be allowed 
to certify in writing that the delivery was attempted, and briefly 
explain what was done and why a signed and dated acknowledgment could 
not be obtained. The renovator is nonetheless required to deliver a 
copy of the pamphlet to the affected housing unit.
    Another option allows the renovator to deliver the pamphlet by mail 
after receiving some receipt or proof of mailing. Of course, the 
renovator may use more expensive methods of delivery (e.g., certified 
mail, registered mail), but obtaining a certificate of mailing from the 
Post Office is the minimum required.
    Notwithstanding the renovator's approach, the renovator must either 
have the proper documentation (i.e., signed and dated acknowledgment, 
or self-certification) or have purchased and received a certificate of 
mailing from the Post Office at least 7 days before the commencement of 
renovation activities.
    3. Content of Acknowledgement Statements. Commenters provided 
suggestions as to the specific language of the acknowledgment 
statements. Several commenters suggested that the statements include 
detail regarding lead hazards and a reference to the pamphlet, while 
others suggested that obtaining acknowledgement would be overly 
burdensome or cause delays in renovation activities. After reviewing 
the comments, EPA decided to delete specific acknowledgment language 
from the rule in order to reduce the burden on the regulated community 
and permit a greater degree of flexibility without compromising the 
safety of owners and occupants. However, to provide guidance to the 
regulated community, Sec. 745.88 has been added, offering suggested 
language for acknowledgment.
    4. Renovations in common areas. The final rule discusses target 
housing in terms of dwelling units and common areas (as would be found 
in multi-family housing). Pre-renovation notification activities for 
renovations in common areas differ slightly from those in dwelling 
units. The main difference is that the renovator is not required to 
distribute the pamphlet and obtain an acknowledgment from the occupants 
regarding renovations performed in common areas, although the renovator 
must notify residents of the upcoming renovations and make the pamphlet 
available upon request, prior to the renovation, at no charge.
    Although some commenters suggested that all residents should 
receive a copy of the pamphlet before any work begins in common areas, 
EPA does not believe that the creation of a system in which occupants 
receive a pamphlet every time any kind of work occurs within the common 
areas of a building is the most efficient method for achieving the 
informational objectives contemplated by section 406(b). Since 
renovation activities may occur in various hallways or lobbies of a 
building on a frequent basis, it could be impractical to require a 
renovator to provide all occupants with a new pamphlet before the 
commencement of each renovation, especially in dwellings with large 
numbers of residential units. Such a requirement would be difficult to 
implement and enforce, and the impact of the pamphlet would likely 
decrease with each time it was given. The renovator is required, 
however, to provide the owner with a copy of the pamphlet and obtain 
the signed, dated acknowledgment thereof.
    Although the renovator is not required to distribute the pamphlet 
and obtain acknowledgments from each occupant in the building, the 
renovator must still notify (no more than 60 days prior to the 
renovation) each unit individually in writing of the renovation work 
that is to occur, including a description and locations of the 
activity, a statement that lead-based paint may be disturbed, and the 
expected starting and ending dates. Further, the renovator must make 
copies of the pamphlet available upon request and provide information 
on how to obtain them. The notification process could be accomplished 
by distributing a letter or flyer containing the required information 
to each living unit within the dwelling. Notification activities could 
be performed by the renovator, by the owner of the dwelling or other 
representative, on behalf of the renovator. Even if the owner or other 
representative agreed to perform the notification activities, however, 
the responsibility to assure compliance would still rest with the 
renovator. In any case, the notification must be received before the 
work is commenced.
    EPA recognizes that in some cases, large renovations could take an 
extended period of time or cover several different common areas of 
multi-family housing. In that case, if the initial notification 
provides accurate information on the scope of renovations planned in 
the various areas, with an accurate schedule of their performance, then 
that initial notification would be sufficient to meet the requirements 
of this rule. If the scope, location, or time frame of the activities 
change in a way not reflected in the original notification, then the 
renovator is obligated to provide updated information in an additional 
notification. This updated information is necessary to ensure that 
owners and occupants can, if necessary, adequately protect themselves 
from exposure to lead-based paint.
    EPA believes that owners or renovators in the original notification 
will allow a generous amount of time for the completion of the 
renovation and define a comprehensive scope of the work to ensure that 
renotification (pursuant to Sec. 745.85(b)(4)) will not be necessary. 
Therefore, EPA has chosen not to include the costs of this provision in 
the Regulatory Impact Analysis (see Unit VII. of this preamble) for 
this rulemaking. EPA has concluded that these provisions for notifying 
occupants of common area renovations strike the appropriate balance 
between public access to information and burden on the regulated 
community.

G. Recordkeeping Requirements

    EPA requested comment on whether the recordkeeping requirements 
were reasonable, too stringent, or not stringent enough. The comments 
were mixed and varied. A significant number of commenters argued that 
the length of the renovation job was a sufficient retention period, and 
an equally significant number of commenters argued to retain the 3-year 
recordkeeping requirement of the proposal. Based on a review of the 
comments provided, EPA will retain the 3-year recordkeeping requirement 
as proposed.
    Thus, renovators are required to retain and, if requested, make 
available to EPA

[[Page 29915]]

or its authorized delegates (i.e., States and Tribes with EPA-approved 
programs) all records necessary to demonstrate compliance with the 
requirements of this rule for 3 years following completion of the 
renovation activities on target housing. These records include any 
reports certifying that lead-based paint is not present in the housing; 
the signed, dated acknowledgments of receipt for delivery of the 
pamphlet; the signed, dated certifications of the inability to obtain 
an acknowledgment of receipt; the certificate of mailing for delivery 
of the pamphlet; and the signed, dated acknowledgments and records of 
notification activities for renovations in common areas.

H. Enforcement and Inspections

    EPA received some comment on the enforcement provisions discussed 
in the statute and the proposed rule. A few commenters expressed 
concern about EPA's ability to oversee and enforce the requirements of 
section 406(b), while other commenters sought assurance that the Agency 
recognized the importance of education and outreach to the regulated 
community. Since the enforcement and inspection provisions in this rule 
derive directly from the authorizing statutory language of TSCA, this 
rule retains the enforcement language largely as proposed. The section 
number was changed to reflect modified numbering, and the section 
heading was renamed so that it could more simply indicate that it 
addressed EPA's enforcement and inspection authority. Below is a 
discussion of the general enforcement authority provided by TSCA 
(including Title IV), along with some discussion of the process EPA 
envisions for the development of a sensible and effective lead 
enforcement program.
    Section 409 of TSCA makes it unlawful to fail or refuse to comply 
with any provision of a rule promulgated under Title IV of TSCA. 
Therefore, failure to comply with any provisions of this final rule by 
regulated entities would be a violation of TSCA. In addition, section 
15 of TSCA makes it unlawful for any regulated entity to fail or refuse 
to permit entry or inspection (of business records in this instance) by 
EPA or its authorized delegates as required by section 11 of TSCA. 
Violators may be subject to both civil and criminal sanctions. Under 
the penalty provision of section 16 of TSCA, any person who violates 
sections 15 or 409 may be subject to a civil penalty of up to $25,000 
per day for each such violation. Knowing or willful violations of any 
provision of this final rule could lead to the imposition of criminal 
fines of up to $25,000 per day and imprisonment for up to 1 year for 
each such violation.
    The above-described provisions reflect the overall enforcement 
authority available to EPA under TSCA. While EPA intends to use the 
inspection and enforcement tools available to ensure compliance with 
this final rule, it is also EPA's intent that outreach and compliance 
assistance be major components of the section 406(b) program so that 
renovators are aware of the new requirements and their subsequent 
obligations. EPA also intends to bring clarity and predictability to 
the enforcement process for section 406(b). EPA is developing a 
mechanism that achieves a common sense relationship between a 
particular ``violation'' of section 406(b) and a particular enforcement 
response. This includes issuing notices of warning (without penalties) 
as appropriate to let individuals know that they are out of compliance 
and give them an opportunity to come into compliance, and ensuring that 
willful and repeated violators are appropriately penalized. However, 
numerous factors (many of which are mandated by TSCA) are involved in 
the Agency's determination of a proper enforcement response. EPA is 
currently developing an ``Enforcement Response Policy'' (ERP) for the 
requirements of this final rule.

I. Confidential Business Information

    EPA received no comments on this section. However, in order for 
readers to understand what is required for the submission of 
confidential documents, EPA has included the following two paragraphs 
to describe those procedures (per 40 CFR part 2, subpart B):
    Those who assert a confidentiality claim for submitted information 
must provide EPA with two copies of their submission. The first copy 
must be complete and contain all information being claimed as 
confidential. The second copy must contain only information not claimed 
as confidential. EPA will place the second copy of the submission in 
the public file.
    EPA will disclose information subject to a claim of confidentiality 
only to the extent permitted by section 14 of TSCA and 40 CFR part 2, 
subpart B. If a person does not assert a claim of confidentiality for 
information at the time it is submitted to EPA, EPA may make the 
information public without further notice to that person.

VI. Authorization of State Programs

    Under section 404(a) of TSCA and its implementing regulations, 
States and Tribes may apply to administer and enforce the standards, 
regulations, and requirements established under this rule. Section 
404(b) states that the Administrator may approve such an application 
only after finding that the State or Tribal program is at least as 
protective of human health and the environment as the Federal program 
established according to the mandate of sections 402 and 406 of TSCA, 
and that it provides adequate enforcement.
    The State or Tribal program must have regulations or procedures 
that contain the following: (1) Requirements for distribution of an 
approved lead hazard information pamphlet before renovations performed 
for compensation in target housing commence; and (2) provisions for the 
adequate enforcement of the above program.
    In providing an approved lead hazard information pamphlet meeting 
the requirements of section 406(a) of TSCA, the State or Tribe may 
either require distribution of: (1) The lead hazard information 
pamphlet developed by EPA, under section 406(a) of TSCA, entitled 
Protect Your Family From Lead In Your Home, or (2) an alternative 
pamphlet or package of lead hazard information that has been approved 
by EPA. Any pamphlet or package of information submitted for EPA 
approval must contain the content and design elements as mandated by 
section 406(a) of TSCA. The procedures for submitting an application 
(40 CFR 745.324) were made final in a separate Federal Register notice.

VII. Summary of Regulatory Impact Analysis

    EPA has prepared a Regulatory Impact Analysis (RIA) which examines 
the potential costs, benefits, and impacts of these regulations for the 
disclosure of potential lead-based paint hazards prior to residential 
renovations. The complete RIA is included as a part of the public 
record for this rule and is available through the TSCA Docket (see Unit 
VIII. of this preamble for address).

A. Background and Framework for Analysis

    Those parties directly affected by the rule are renovators (which 
may include property managers), occupants of owner-occupied and rental 
housing, and owners of rental property. EPA found the required 
activities which give rise to regulatory burden imposed on the affected 
parties to fall into four categories for cost estimation purposes:
    <bullet> Start-up costs, which include learning the rule's 
requirements and establishing compliance procedures.

[[Page 29916]]

    <bullet> Disclosure activities, which refer to the costs resulting 
from the actual transfer of information and obtaining of needed 
acknowledgments.
    <bullet> Recordkeeping, which results principally from the 
requirement that signed acknowledgment statements must be retained by 
the provider of the information.
    <bullet> Materials, which is linked primarily to the disclosure 
requirement, as the lead hazard information pamphlet must be purchased 
or photocopied (acknowledgment statements must also be provided). Costs 
may also be incurred for filing where a high number of acknowledgment 
statements are generated (e.g., renovators), though such burden was 
estimated to be quite modest.
    The requirements of section 406(b) of TSCA fall on parties 
providing renovation services for compensation to owners of ``target 
housing,'' which is defined to be any housing constructed prior to 
1978, except housing for the elderly or persons with disabilities 
(unless any child who is less than 6 years of age resides or is 
expected to reside in such housing) or any 0-bedroom dwelling.
    To estimate the impacts of the rule, data were sought pertaining to 
the number of affected parties; the frequency with which affected 
renovation transactions are completed; and the incremental costs, in 
labor and materials, added to each transaction by the regulations.

B. Profile of Sectors Affected

    Four major industry sectors were identified as affected: SIC codes 
15 (General Contractors and Operative Builders); 17 (Special Trade 
Contractors); 651 (Real Estate Operators and Lessors); and 653 (Real 
Estate Agents and Managers). In total, EPA estimates there to be 
482,000 establishments potentially affected by the rule. The greatest 
portion of this sum is expected to fall within SIC 17, where 199,000 
establishments could be subject to the rule's requirements. Ninety-nine 
thousand establishments were estimated to be potentially affected in 
SIC 15. Also subject to the rule are as many as 92,000 business 
establishments falling within each of SICs 651 and 653.
    Employment data for these industries were obtained for occupations 
most likely to be involved in transactions subject to the rule. EPA 
estimates that 2,272,000 contractor personnel (SICs 15 and 17) and 
243,000 property managers (SICs 651 and 653) may be affected.
    With regard to transaction volume, EPA found that 12.2 million 
renovation events in owner-occupied target housing and 6.3 million 
renovation events in rental target housing that occur each year may be 
subject to the rule.

C. Estimated Costs to Private Parties and Government

    EPA found that due to limitations of the data, the RIA cost 
estimates could not distinguish the frequency of regulated transactions 
in target housing from those transactions occurring in housing not 
subject to the information disclosure rules. While completing the final 
analysis, EPA also determined that it was not possible to establish how 
frequently transactions performed in target housing would be excluded 
from regulatory coverage (e.g., jobs disturbing less than 2 square feet 
of painted surface). For those reasons, EPA believes that both the 
proposed and final regulatory impact analyses overstate the impact of 
this rulemaking.
    The first private party cost category, start-up costs, represents 
about one-third of overall annual compliance costs at $13.2 million. 
Factors affecting the magnitude of these costs include the number of 
employees having to familiarize themselves with the regulations, both 
initially (employees in the existing workforce) and over time (new 
entrants to the affected sectors); the time required to learn the 
activities which must be undertaken in order to comply; and the hourly 
compensation of affected employees.
    Disclosure event costs of $57.5 million constitute the greatest 
portion of overall compliance costs. Factors affecting the magnitude of 
these costs include the frequencies of regulated events; the time 
involved in performing required activities, such as providing the 
owner/tenant with the required information and obtaining the required 
signatures; and the hourly compensation of all involved parties.
    Recordkeeping and materials costs comprise a relatively modest 
share of overall annual costs at $3.7 million and $7.8 million, 
respectively. Factors affecting the magnitude of these cost items 
include the number of affected parties per transaction; the frequency 
of transactions; the costs of acquiring/duplicating documents, which 
include the lead hazard information pamphlet and signed acknowledgment 
statements; and costs to maintain documents. This leads to a total 
estimated annual cost to private parties of $82.2 million.
    To administer the final regulation, EPA estimates government 
resources totaling between $2.4 million (low estimate) and $4.3 million 
(high estimate) will be required to conduct a number of activities, 
including: inspections; violation case management; establishment and 
maintenance of cooperative agreements; compliance assistance, 
development of performance measurement criteria; and management. 
Therefore, the total annual costs for this rule, to private parties and 
the government, is estimated to be between $84.6 million (low estimate) 
and $86.5 million (high estimate).

D. Effect of the Lead-Based Paint Hazard Disclosure Rule for Real 
Estate Renovations on Small Businesses Regulatory Flexibility Analysis

    EPA investigated the potential impacts of the rule on small 
businesses, and has prepared a regulatory flexibility analysis which is 
included in the RIA. While a large number of small establishments will 
be potentially affected by the rule, cost impacts were not found to be 
of sufficient magnitude to have significant economic impacts on such 
establishments. That analysis is summarized separately in Unit X.B. of 
this preamble.

E. Assessment of Benefits

    The market imperfection that the rule is intended to correct is the 
lack of information available to homeowners and tenants regarding the 
potential health risks accompanying residential renovations that are 
related to lead-based paint. Under the rule, general information about 
risks associated with lead-based paint will be provided through the 
provision of the pamphlet. The failure of the marketplace to currently 
provide this information means that owners and occupants may not be 
able to react appropriately to avoid or prevent such risks.
    This rule will generate direct benefits by providing homeowners and 
tenants information which they value and otherwise can acquire only 
through their own effort at some cost. Two approaches for estimating 
the benefits associated with having information are discussed in the 
Regulatory Impact Analysis (RIA): a contingent valuation study, or a 
study of the transaction costs to buyers and renters of obtaining 
similar information. However, an information base and the associated 
accepted analytic methods are not yet available; thus, the direct 
benefits of this rule are not quantified. Nevertheless, EPA believes 
that the information provided in the qualitative analysis presented in 
the RIA adequately serves to inform and support the Agency's decision 
to promulgate this rule.
    EPA also expects indirect or ``follow-on'' benefits from the rule, 
as the parties to the renovation transaction comprehend and use the 
information in

[[Page 29917]]

the pamphlet. The regulation does not require that the pamphlet be read 
or that actions be taken to reduce lead-based paint hazards; thus, the 
extent to which lead exposure is reduced depends upon how transaction 
participants respond to the information provided to them by this rule. 
Such responses will involve both costs and benefits. As discussed in 
the RIA, these costs and benefits are extremely difficult to quantify 
because doing so requires the prediction of behavior and the isolation 
of the many factors that influence behavior. In any event, EPA believes 
that the benefits of any follow-on activities will outweigh their 
costs, because any such actions will be undertaken voluntarily by the 
parties to the renovation transaction.

VIII. Rulemaking Record

    A record for this final rule has been established under docket 
control number ``OPPTS-62131.'' The public version of this record 
(which does not contain any information claimed as CBI) is available 
for inspection from noon to 4 p.m., Monday through Friday, excluding 
legal holidays. The public record is located in EPA's TSCA Docket or 
Nonconfidential Information Center (NCIC), Rm. NE-B607, 401 M St., SW., 
Washington, DC 20460.
    The rulemaking record contains information considered by EPA in 
developing this final rule. The record includes: (1) All Federal 
Register notices, (2) relevant support documents, (3) reports, (4) 
memoranda and letters, and (5) hearing transcripts, responses to 
comments, and other documents related to this rulemaking.
    Unit IX. of this preamble contains the list of documents which the 
Agency relied upon while developing this final regulation and can be 
found in the docket. Other documents, not listed there, such as those 
submitted with written comments from interested parties, are contained 
in the TSCA Docket Office as well. A draft of today's final rule 
submitted by the Administrator to the Office of Management and Budget 
for an interagency review process prior to publication of the rule is 
also contained in the public docket.

IX. References

    1. Alliance to End Childhood Lead Poisoning, Preventing Childhood 
Lead Poisoning: The First Comprehensive National Conference; Final 
Report. Washington, DC, 1991.
    2. CDC, 1991. U.S. Centers for Disease Control and Prevention, 
``Preventing Lead Poisoning in Young Children; A Statement By the 
Centers for Disease Control.'' Atlanta, GA, October 1991.
    3. CPSC, 1977. ``Notice Reducing Allowable Levels of Lead in Lead-
Based Paint.'' Federal Register. September 1, 1977: 42 FR 44199.
    4. EPA, 1995. U.S. Environmental Protection Agency, ``Report on the 
National Survey of Lead-Based Paint in Housing: Base Report.'' 
Washington, DC: (EPA #747-R95-003).
    5. HUD, 1995. U.S. Department of Housing and Urban Development, 
Task Force on Lead-Based Paint Hazard Reduction and Financing, 
``Putting the Pieces Together: Controlling Lead Hazards in the Nation's 
Housing: Final Report.'' Washington, DC: HUD-1542-LBP.
    6. HUD, 1990. ``Lead-Based Paint; Interim Guidelines for Hazard 
Identification and Abatement in Public and Indian Housing; Notice.'' 
Federal Register. April 18, 1990: 55 FR 14556.
    7. HUD, 1994. Department of Housing and Urban Development, 
``National Housing Survey.'' Washington, DC.
    8. HUD, 1995. Department of Housing and Urban Development, 
``Guidelines for the Evaluation and Control of Lead-Based Paint Hazards 
in Housing.'' Washington, DC.
    9. Pirkle, 1994. Pirkle, J.L., Brody D.J., Gunter E.W., Kramer 
R.A., Paschal D.C., Flegal K.M., Matte T.D., ``The Decline in Blood 
Lead Levels in the United States.'' Journal of the American Medical 
Association, 272(4): 284-291.
    9a. CDC, 1997. ``Update: Blood Lead Levels - United States, 1991-
1994.'' Morbidity and Mortality Weekly Report, 46(7): 141-146.
    9b. CDC, 1997. Erratum: Vol. 46, No. 7. Morbidity and Mortality 
Weekly Report, 46(26).
    10. EPA, 1995. ``Lead Hazard Information Pamphlet; Notice of 
Availability.'' Federal Register. August 1, 1995: 60 FR 39167.
    11. National Institute of Building Sciences, 1996. ``Regulatory 
Models for Lead Poisoning Prevention: Lead-Based Paint Regulatory 
Infrastructure Project.'' Published draft: Washington, DC. December 2, 
1996.

X. Regulatory Assessment Requirements

A. Executive Order 12866

    Under Executive Order 12866, entitled Regulatory Planning and 
Review (58 FR 51735, October 4, 1993), this is a ``significant 
regulatory action'' subject to review by the Office of Management and 
Budget (OMB), because this action may raise novel legal and policy 
issues arising from the implementation of new statutory mandates under 
Title IV of the Toxic Substances Control Act (15 U.S.C. 2681-2692). 
This action was therefore submitted to OMB for review, and any changes 
made during that review have been documented in the public record.
    EPA has prepared an economic analysis of the impact of this action 
for renovation activities, which is contained in a document entitled 
Regulatory Impact Analysis of Lead-Based Paint Hazard Disclosure 
Regulation for Residential Renovations (hereinafter referred to as the 
RIA). This document is available as a part of the public record for 
this action and is summarized in Unit VII. of this preamble. EPA finds 
that the rule will not have an annual effect on the economy of $100 
million or more, will not result in major increases in costs or prices, 
and is not anticipated to have significant adverse effects on 
competition, employment, investment, or productivity in the relevant 
sectors.
    EPA estimates the annual costs to private entities to be $82 
million and the annual costs to government to range from $2.4 to $4.3 
million. These estimates include costs for rule familiarization, 
information disclosure and obtaining required signatures, 
recordkeeping, materials costs and, for government, costs of 
administration. EPA estimates that the provisions of the rule would add 
about $2.00 to $4.00 to the cost of each transaction for each entity 
impacted. The average unit costs per renovation activity is $4.52.

B. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), the Agency hereby certifies that this action will 
not have a significant economic impact on a substantial number of small 
entities. Although small businesses were found to constitute the great 
majority of affected entities, the estimated individual cost impacts of 
$2.00 to $4.00 per transaction (e.g., the cost to renovation 
contractors, speciality trade contractors, or rental property managers 
on a per unit basis), are quite insignificant. EPA has prepared a final 
analysis of small entity impacts as part of the RIA, which is 
summarized in Unit VII.D. of this preamble and briefly discussed here.
    As demonstrated in the analysis, all provisions were carefully 
crafted to minimize impacts on all regulated entities. Similarly, due 
to the high proportion of affected establishments represented by small 
business, the Agency's review and response to public comments, 
particularly comments relating to cost estimates presented in the RIA 
and which formed the basis of the flexibility analysis, have been 
incorporated into the analysis by

[[Page 29918]]

reference. The Regulatory Flexibility Act also requires a statement of 
the need for, and objectives of, the rule to be provided. This 
statement appears in Unit III. of this preamble, and is also 
incorporated into the analysis by reference.
    In assessing small business impacts, EPA first developed an 
establishment profile for each major sector: SIC 15 (General 
Contractors and Operative Builders); SIC 17 (Special Trade 
Contractors); SIC 651 (Real Estate Operators and Lessors); and SIC 653 
(Real Estate Agents and Managers). This profile indicated that 
approximately 80 to 90% of all establishments in each sector fell 
within the 1-9 employee size class, and roughly 98% had fewer than 50 
employees. Thus, a substantial number of small firms are estimated to 
be potentially affected by the rule.
    To measure the cost impacts of the rule on these establishments, 
representative or model establishments were designed. These model 
establishments corresponded to typical establishments, with respect to 
number of employees and annual transaction volume, in each affected 
sector. Since transaction activity was reported to vary widely, a range 
of transaction volume was estimated for each establishment type.
    For each model establishment, annual regulatory costs were then 
calculated and compared to annual labor and overhead costs. Ratios were 
computed for both high and low estimates of the range of transaction 
activity. In the case of a multi-trade renovation contractor, 
regulatory costs were found to represent from 0.04 to 0.09 percent of 
labor and overhead costs. In the case of a specialty trade contractor, 
impacts were somewhat higher, ranging from 0.21 to 0.49%. An 
establishment engaged in rental property management was projected to 
sustain impacts of 0.73 to 1.44%.
    In developing these impact ratios, EPA was unable to distinguish in 
its estimates of transaction activity how frequently transactions might 
take place in target housing as opposed to housing not subject to the 
information disclosure rules. Further, it was not possible to determine 
how frequently transactions performed in target housing would be 
excluded from regulatory coverage (e.g., jobs disturbing less than 2 
square feet of painted surface). For these reasons, the number of 
transactions incorporated in the flexibility analysis may exaggerate 
the number of jobs actually subject to the rule, resulting in impacts 
which most likely overstate true impacts.
    While a large number of small establishments will be potentially 
affected by the rule, the analysis did not suggest cost impacts to be 
significant for such establishments. EPA received a number of comments 
relating to the costs of the rulemaking. Most of those comments 
centered on a belief that EPA underestimated the burden hours of (and 
thereby the costs associated with) each transaction. EPA disagrees with 
those commenters' assertions. Information EPA collected suggested that 
in the majority of affected transactions, section 406 requirements 
could be met as part of a pre-existing process. Information regarding 
the frequency with which more complex, time-consuming scenarios might 
occur suggested that those circumstances would be in the minority. 
Further, EPA believes the flexibility afforded the renovator by the 
rule will be of particular advantage to contractors who may foresee 
difficulties in carrying out the notification requirements.
    Information relating to this determination has been provided to the 
Chief Counsel for Advocacy of the Small Business Administration, and is 
included in the docket for this rulemaking.

C. Paperwork Reduction Act

    The information collection requirements in this rule have been 
submitted for approval to OMB under the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.). An Information Collection Request (ICR) document 
has been prepared by EPA (EPA ICR No. 1669.01) and a copy may be 
obtained from Sandy Farmer, OPPE Regulatory Information Division, U.S. 
Environmental Protection Agency (2136), 401 M St., SW., Washington, DC 
20460, or by calling (202) 260-2740. The information collection 
requirements in this rule are not effective until OMB approves them.
    The collection of information required in this rule has an 
estimated recordkeeping burden averaging 6.2 minutes per response, and 
requires 5.7 hours per recordkeeper, annually. These estimates include 
time to review instructions, search existing data sources, gather and 
maintain the data needed, and complete the collection of information.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, disclose, or provide 
information to or for a Federal agency. This includes the time needed 
to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations are listed in 40 CFR part 9. Upon OMB approval, EPA will 
issue a notice in the Federal Register to announce OMB's approval and 
to make a technical amendment to include a reference to this approval 
in 40 CFR part 9.
    Send comments on the Agency's accuracy of the provided burden 
estimates, and any suggested methods for minimizing respondent burden, 
including through the use of automated collection techniques to the 
Director, OPPE Regulatory Information Division, at the address listed 
above, and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th St., NW., Washington, DC 20503, 
marked ``Attention: Desk Officer for EPA.'' Include the ICR number in 
any correspondence.

D. Unfunded Mandates Reform Act and Executive Order 12875

    Pursuant to Title II of the Unfunded Mandates Reform Act, which the 
President signed into law on March 22, 1995, EPA has assessed the 
effects of this regulatory action on State, local, and tribal 
governments, and the private sector. This action does not result in the 
annual expenditure (in the aggregate) of $100 million or more by any 
State, local, or tribal government, or by anyone in the private sector. 
The costs associated with this action are described in the Executive 
Order 12866 section above.
    In addition to the consultations prior to proposal, EPA has had 
several informal consultations regarding the proposed rule with some 
States through the EPA Regional Offices and at regularly scheduled 
State meetings. No significant issues or information were identified as 
a result of EPA's discussion with the States.
    In addition, since the issuance of this rule is not discretionary, 
the intergovernmental consultation provisions of section 204 of the 
UMRA and Executive Order 12875, entitled Enhancing the 
Intergovernmental Partnership (58 FR 58093, October 28, 1993), do not 
apply. The EPA is required under Title IV of the Toxic

[[Page 29919]]

Substances Control Act (15 U.S.C. 2681-2692) to promulgate these 
regulations.

E. Executive Order 12898

    Pursuant to Executive Order 12898 (59 FR 7629, February 16, 1994), 
entitled Federal Actions to Address Environmental Justice in Minority 
Populations and Low-Income Populations, the Agency has considered 
environmental justice-related issues with regard to the potential 
impacts of this action on the environmental and health conditions in 
low-income and minority communities. Recognizing that lead-based paint 
hazard exposure is more prevalent in those communities, the Agency has 
developed a Spanish language version of the pamphlet and is seeking 
partners to investigate its translation into other languages. The 
Agency also requires that the signed acknowledgment statements be in 
the same language as the contract it accompanies.

F. Executive Order 13045

    This action is not subject to Executive Order 13045, entitled 
Protection of Children from Environmental Health Risks and Safety Risks 
(62 FR 19885, April 23, 1997), because this action is not an 
economically significant regulatory action as defined by Executive 
Order 12866 (see Unit X.A. above). This action does, however, address 
environmental health or safety risks affecting children, in that this 
rule ensures that owners and occupants of target housing are provided 
information concerning the potential hazards of lead-based paint 
exposure before certain renovations are begun, and children are 
particularly susceptible to the hazards of lead. This information 
allows these individuals to consider taking appropriate precautions to 
avoid exposure to the lead-contaminated dust and lead-based paint 
debris that are sometimes generated during renovations of housing with 
lead-based paint. In fact, children under the age of 6 are the primary 
beneficiaries of this rule, as well as the Agency's overall Lead 
Program.

XI. Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) of the Administrative Procedure Act 
(APA) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (Title II of Pub. L. 104-121, 110 Stat. 847), EPA submitted 
a report containing this rule and other required information to the 
U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States prior to publication of the rule in 
today's Federal Register. This rule is not a ``major rule'' as defined 
by 5 U.S.C. 804(2) of the APA as amended.

List of Subjects in 40 CFR Part 745

    Environmental protection, Abatement, Housing renovation, Lead, 
Lead-based paint, Reporting and recordkeeping requirements.

    Dated: May 22, 1998.
Carol M. Browner,
Administrator.
    Therefore, 40 CFR chapter I is amended as follows.

PART 745--[AMENDED]

    1. The authority citation for part 745 is revised to read as 
follows:

    Authority: 15 U.S.C. 2605, 2607, 2681-2692 and 42 U.S.C. 4852d.

    2. Subpart E is added to read as follows:
Subpart E--Residential Property Renovation
Sec.
745.80    Purpose.
745.81    Effective date.
745.82    Applicability.
745.83    Definitions.
745.84    Confidential business information.
745.85    Information distribution requirements.
745.86    Recordkeeping requirements.
745.87    Enforcement and inspections.
745.88    Acknowledgment and certification statements.

Subpart E--Residential Property Renovation


Sec. 745.80   Purpose.

    This subpart contains regulations developed under Title IV (15 
U.S.C. 2681-2692) of the Toxic Substances Control Act and applies to 
all renovations of target housing performed for compensation. The 
purpose of this subpart is to require each person who performs a 
renovation of target housing for compensation to provide a lead hazard 
information pamphlet to the owner and occupant of such housing prior to 
commencing the renovation.


Sec. 745.81   Effective date.

    The requirements in this subpart shall take effect on June 1, 1999.


Sec. 745.82   Applicability.

    (a) Except as provided in paragraph (b) of this section, this 
subpart applies to all renovations of target housing performed for 
compensation.
    (b) This subpart does not apply to renovation activities that are 
limited to the following:
    (1) Minor repair and maintenance activities (including minor 
electrical work and plumbing) that disrupt 2 square feet or less of 
painted surface per component.
    (2) Emergency renovation operations.
    (3) Renovations in target housing in which a written determination 
has been made by an inspector (certified pursuant to either Federal 
regulations at Sec. 745.226 or a State or Tribal certification program 
authorized pursuant to Sec. 745.324) that the components affected by 
the renovation are free of paint or other surface coatings that contain 
lead equal to or in excess of 1.0 milligram per square centimeter or 
0.5 percent by weight, where the renovator has obtained a copy of the 
determination.


Sec. 745.83   Definitions.

    For purposes of this part, the definitions in Sec. 745.103 as well 
as the following definitions apply:
    Administrator means the Administrator of the Environmental 
Protection Agency.
    Emergency renovation operations means renovation activities, such 
as operations necessitated by non-routine failures of equipment, that 
were not planned but result from a sudden, unexpected event that, if 
not immediately attended to, presents a safety or public health hazard, 
or threatens equipment and/or property with significant damage.
    Multi-family housing means a housing property consisting of more 
than four dwelling units.
    Pamphlet means the EPA pamphlet developed under section 406(a) of 
TSCA for use in complying with this and other rulemakings under Title 
IV of TSCA and the Residential Lead-Based Paint Hazard Reduction Act, 
or any State or Tribal pamphlet approved by EPA pursuant to 40 CFR 
745.326 that is developed for the same purpose. This includes 
reproductions of the pamphlet when copied in full and without revision 
or deletion of material from the pamphlet (except for the addition or 
revision of State or local sources of information).
    Person means any natural or judicial person including any 
individual, corporation, partnership, or association; any Indian Tribe, 
State, or political subdivision thereof; any interstate body; and any 
department, agency, or instrumentality of the Federal Government.
    Renovation means the modification of any existing structure, or 
portion thereof, that results in the disturbance of painted surfaces, 
unless that activity is performed as part of an abatement as defined by 
this part (40 CFR 745.223). The term renovation includes (but is not 
limited to): the removal or modification of painted surfaces or painted

[[Page 29920]]

components (e.g., modification of painted doors, surface preparation 
activity (such as sanding, scraping, or other such activities that may 
generate paint dust)); the removal of large structures (e.g., walls, 
ceiling, large surface replastering, major re-plumbing); and window 
replacement.
    Renovator means any person who performs for compensation a 
renovation.


Sec. 745.84   Confidential business information.

    (a) Those who assert a confidentiality claim for submitted 
information must provide EPA with two copies of their submission. The 
first copy must be complete and contain all information being claimed 
as confidential. The second copy must contain only information not 
claimed as confidential. EPA will place the second copy of the 
submission in the public file.
    (b) EPA will disclose information subject to a claim of 
confidentiality only to the extent permitted by section 14 of TSCA and 
40 CFR part 2, subpart B. If a person does not assert a claim of 
confidentiality for information at the time it is submitted to EPA, EPA 
may make the information public without further notice to that person.


Sec. 745.85   Information distribution requirements.

    (a) Renovations in dwelling units. No more than 60 days before 
beginning renovation activities in any residential dwelling unit of 
target housing, the renovator shall:
    (1) Provide the owner of the unit with the pamphlet, and comply 
with one of the following:
    (i) Obtain, from the owner, a written acknowledgment that the owner 
has received the pamphlet.
    (ii) Obtain a certificate of mailing at least 7 days prior to the 
renovation.
    (2) In addition to the requirements in paragraph (a)(1) of this 
section, if the owner does not occupy the dwelling unit, provide an 
adult occupant of the unit with the pamphlet, and comply with one of 
the following:
    (i) Obtain, from the adult occupant, a written acknowledgment that 
the occupant has received the pamphlet; or certify in writing that a 
pamphlet has been delivered to the dwelling and that the renovator has 
been unsuccessful in obtaining a written acknowledgment from an adult 
occupant. Such certification must include the address of the unit 
undergoing renovation, the date and method of delivery of the pamphlet, 
names of the persons delivering the pamphlet, reason for lack of 
acknowledgment (e.g., occupant refuses to sign, no adult occupant 
available), the signature of the renovator, and the date of signature.
    (ii) Obtain a certificate of mailing at least 7 days prior to the 
renovation.
    (b) Renovations in common areas. No more than 60 days before 
beginning renovation activities in common areas of multi-family 
housing, the renovator shall:
    (1) Provide the owner with the pamphlet, and comply with one of the 
following:
    (i) Obtain, from the owner, a written acknowledgment that the owner 
has received the pamphlet.
    (ii) Obtain a certificate of mailing at least 7 days prior to the 
renovation.
    (2) Notify in writing, or ensure written notification of, each unit 
of the multi-family housing and make the pamphlet available upon 
request prior to the start of renovation. Such notification shall be 
accomplished by distributing written notice to each affected unit. The 
notice shall describe the general nature and locations of the planned 
renovation activities; the expected starting and ending dates; and a 
statement of how the occupant can obtain the pamphlet, at no charge, 
from the renovator.
    (3) Prepare, sign, and date a statement describing the steps 
performed to notify all occupants of the intended renovation activities 
and to provide the pamphlet.
    (4) If the scope, locations, or expected starting and ending dates 
of the planned renovation activities change after the initial 
notification, the renovator shall provide further written notification 
to the owners and occupants providing revised information on the 
ongoing or planned activities. This subsequent notification must be 
provided before the renovator initiates work beyond that which was 
described in the original notice.
    (c) Written acknowledgment. Sample language for such 
acknowledgments is provided in Sec. 745.88. The written acknowledgments 
required in paragraphs (a)(1)(i), (a)(2)(i), and (b)(1)(i) of this 
section shall:
    (1) Include a statement recording the owner or occupant's name and 
acknowledging receipt of the pamphlet prior to the start of renovation, 
the address of the unit undergoing renovation, the signature of the 
owner or occupant as applicable, and the date of signature.
    (2) Be either a separate sheet or part of any written contract or 
service agreement for the renovation.
    (3) Be written in the same language as the text of the contract or 
agreement for the renovation or, in the case of non-owner occupied 
target housing, in the same language as the lease or rental agreement 
or the pamphlet.


Sec. 745.86   Recordkeeping requirements.

    (a) Renovators shall retain and, if requested, make available to 
EPA all records necessary to demonstrate compliance with this subpart 
for a period of 3 years following completion of the renovation 
activities in target housing. This 3-year retention requirement does 
not supersede longer obligations required by other provisions for 
retaining the same documentation, including any applicable State or 
Tribal laws or regulations.
    (b) Records that must be retained pursuant to paragraph (a) of this 
section shall include (where applicable):
    (1) Reports certifying that a determination had been made by an 
inspector (certified pursuant to either Federal regulations at 
Sec. 745.226 or an EPA-authorized State or Tribal certification 
program) that lead-based paint is not present in the area affected by 
the renovation, as described in Sec. 745.82(b)(vi).
    (2) Signed and dated acknowledgments of receipt as described in 
Sec. 745.85(a)(1)(i), (a)(2)(i), and (b)(1)(i).
    (3) Certifications of attempted delivery as described in 
Sec. 745.85(a)(2)(i).
    (4) Certificates of mailing as described in Sec. 745.85(a)(1)(ii), 
(a)(2)(ii), and (b)(1)(ii).
    (5) Records of notification activities performed regarding common 
area renovations, as described in Sec. 745.85(b)(3) and (4).


Sec. 745.87   Enforcement and inspections.

    (a) Failure or refusal to comply with any provision of this subpart 
is a violation of TSCA section 409 (15 U.S.C. 2689).
    (b) Failure or refusal to establish and maintain records or to make 
available or permit access to or copying of records, as required by 
this subpart, is a violation of TSCA sections 15 and 409 (15 U.S.C. 
2614 and 2689).
    (c) Failure or refusal to permit entry or inspection as required by 
40 CFR 745.87 and TSCA section 11 (15 U.S.C. 2610) is a violation of 
sections 15 and 409 (15 U.S.C. 2614 and 2689).
    (d) Violators may be subject to civil and criminal sanctions 
pursuant to TSCA section 16 (15 U.S.C. 2615) for each violation.
    (e) EPA may conduct inspections and issue subpoenas pursuant to the 
provisions of TSCA section 11 (15 U.S.C. 2610) to ensure compliance 
with this subpart.


Sec. 745.88   Acknowledgment and certification statements.

    (a)(1) Acknowledgment statement. As required under 
Sec. 745.85(c)(1),

[[Page 29921]]

acknowledgments shall include a statement of receipt of the pamphlet 
prior to the start of renovation, the address of the unit undergoing 
renovation, the signature of the owner or occupant as applicable, and 
the date of signature.
    (2) Sample acknowledgment language. The following is a sample of 
language that could be used for such acknowledgments:
I have received a copy of the pamphlet, Protect Your Family From Lead 
In Your Home, informing me of the potential risk of lead hazard 
exposure from renovation activity to be performed in my dwelling unit. 
I received this pamphlet before the work began.
________________
________________

Printed Name and Signature

____________
Date

______________
______________
Unit Address
    (b)(1) Certification of attempted delivery. When an occupant is 
unavailable for signature or refuses to sign the acknowledgment of 
receipt of the pamphlet, the renovator is permitted (per 
Sec. 745.85(a)(2)(i)) to certify delivery for each instance. The 
certification shall include the address of the unit undergoing 
renovation, the date and method of delivery of the pamphlet, names of 
the persons delivering the pamphlet, reason for lack of acknowledgment 
(e.g. occupant refuses to sign, no adult occupant available), the 
signature of the renovator, and the date of signature.
    (2) Sample certification language. The following is a sample of 
language that could be used under those circumstances:
    (i) Unavailable for signature.
    I certify that I have made a good faith effort to deliver the 
pamphlet, Protect Your Family From Lead In Your Home, to the unit 
listed below at the dates and times indicated, and that the occupant 
refused to sign the acknowledgment. I further certify that I have left 
a copy of the pamphlet at the unit with the occupant.
________________
________________

Printed Name and Signature
______________
Date
____________
____________
Unit Address

Attempted delivery dates and times:
    (ii) Refusal to sign.
    I certify that I have made a good faith effort to deliver the 
pamphlet, Protect Your Family From Lead In Your Home, to the unit 
listed below, and that the occupant was unavailable to sign the 
acknowledgment. I further certify that I have left a copy of the 
pamphlet at the unit by sliding it under the door.
______________
______________

Printed Name and Signature
________________
Date
________________
________________
Unit Address

Attempted delivery dates and times:

[FR Doc. 98-14437 Filed 5-29-98; 8:45 am]
BILLING CODE 6560-50-F


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