Elements of Radon Risk Compliance and Penalties in the Real World A look at increasing risks facing U.S. radon professionals

Basis of EPA/State Programs Late 1980s – the USEPA Concentrated On: –Voluntary Program – Not Risk Reduction Based –Consumer Protection from a Wild West Industry Industry Was the Problem – Not Radon –Created Barriers/Threshold for Entry Government Standards – Top Down Program Criteria Lite Requirements for Providers – RPP & Regional Radon Training Centers Assumption Education would compel States to Enforce Emerging Markets - New Opportunities

US EPA’s Voluntary Program Acceded to the Housing Lobby (Real Estate and Home Builders) and Created a Cheap Voluntary System that Would Not Interfere with Housing Sales. Emerging Markets - New Opportunities

Lead * Learn * Mentor * Contribute * Communicate 28 Years Later Privatized the RPP in 1998 Reduced EPA Funding 4,000 Certified/Licensed in U.S. –There should be 40,000 certified Lacking sustainable infrastructure

Lead * Learn * Mentor * Contribute * Communicate Compliance Risk & Professionals Typically –Radon Risk is talked about as Health Risk –First 20 Years – For Pros - Most Risk Contractual Contractual Interference – Small Claims Seller Complaints – Sales Transaction - Measurement –Very Few Mitigation Complaints Again – Mostly Contractual

Lead * Learn * Mentor * Contribute * Communicate The Typical Case – First 20 Years Contract Dispute –Seller Does Not Like Test –Claims Test Results Wrong – Threatens Suit –If Buyer Reneges On Sale – Sues Claims Contract Inference – Goes After Lost Sale Minimal Impact on Profession

Lead * Learn * Mentor * Contribute * Communicate Compliance – 20 Years 35 States Non-regulated –Tribal Nations/Military/Territories – No Regulations 5 States Weakly Regulated 10 Highly Regulated States –Having State Regulations & Enforcement –Most Enforcement - Educations

Lead * Learn * Mentor * Contribute * Communicate Regulated Compliance – First 20 Years NRPP and NRSB –Suspensions and De-Certification Highly Regulated States –Warnings – Seeking Re-education –Fines – Minor –Some Decertification of “Bad Players”

2010 – Radon Risk Seismic Shift Good News – Increased Compliance Bad News – Torts Emerging Markets - New Opportunities

Lead * Learn * Mentor * Contribute * Communicate Why Increased Compliance is Good News… $4,000 Fines for Non-Compliance Will Be the New Normal –Regulated States Have Increased Penalties –Minimal Fines Per Occurance – Significant Totals Such As CRM not calibrated Failure to Maintain QA/QC $100,000 fines may become the Norm.

Lead * Learn * Mentor * Contribute * Communicate Case Study 1 : Regulated State Reputable Licensee – 24 Years Experience –Failure to Calibrate 2 CRMs in Inventory Lost Paperwork Calibration Lab Closed – No Access to backup records –State Tracked Usage of CRMs after Out of Calibration Date – over 8 months –$50 fine per occurance –Total Fine Exceeded $4,000.

Lead * Learn * Mentor * Contribute * Communicate Case Study 3: Non Regulated State NRPP Case in Non-Regulated State –State Submitted Compeling Evidence to NRPP –Compelling Violations of EPA RMS –State De-listed Company from Web Site –NRPP Decertified the Professional –Company was required to create QA/QC Plan Lost web references for 6 Months

Lead * Learn * Mentor * Contribute * Communicate Case Study 3:Code Enforcement Code Enforcement in Non-Regulated State –150 Cases Electrical Wired w/o Licensed Electrician –City Department Issued Cease and Desist Order –No Work Allowed Until Resolved 100 Sites Had to Be Re-wired by Licensed Electrician At Least $15,000 in Direct Costs 4-5 Weeks Lost Work in City

Lead * Learn * Mentor * Contribute * Communicate Case Study 4: Regulated State: Kansas National Company - $106,000 Potential Fine Non-compliance, multiple violations $30,000 Fine Signed Consent Order Future Requirements and Potential $76,000 Fine held in abeyance

Lead * Learn * Mentor * Contribute * Communicate That’s The Good News Generally, Fines Enacted by Agencies (Both Private and Public Agencies May Fine) Seek To: –Change Behavior –Compel Compliance to recognized Standards –Protect the public and other professionals Termination of Certification is Last Resort

Lead * Learn * Mentor * Contribute * Communicate Bad News: Class Action Law Suits Ambulance Chasers Also Change Behavior Radon: –Significant Lawsuits Are Now Impacting The Marketplace –Radon Torts are Now Risky – Think Millions

Lead * Learn * Mentor * Contribute * Communicate Class Action Case One Condo Association Members Sued –Property Managers, R.E. Agent, Builder and Radon Professional –For Failure to Inform of Radon Remediation Lawsuit Cost Member > $700,000 –Each Defendant faced individual costs Settlements were Extensive

Lead * Learn * Mentor * Contribute * Communicate Class Action Case One Don’t Go Along with the Customer Absence of a Standard is Not Absolution –Underwriting the importance of a complete set of National Standards

Lead * Learn * Mentor * Contribute * Communicate Class Action Case Two National Builder –Failure to Adhere to RRNC Standard –Costly Legal Defense –Public Company – Reserved Tens of Millions –Settlement was Sealed Did Not Exceed Reserves

Lead * Learn * Mentor * Contribute * Communicate AARST-NRPP Action Steps Increased Compliance Staffing Required QA Plan Submissions Audits – Cost to the Professional Reinstatements will be Provisional/Audited –Extra Cost –Penalties May Include Extra $$ Fees/Penalties