The Home Depot (THD) revealed today that criminal investigators from the federal Environmental Protection Agency (EPA) are examining THD's compliance with agency rules governing work on sites where lead paint is present.
The news, contained in THD's annual report filed with the Securities and Exchange Commission, comes 15 months after the EPA announced it reached a $37,065 settlement with THD At-Home Service, as a result of alleged violations of the Renovation, Repair, and Painting (RRP) Rule at a project site in Arvada, Colo. Last September, Sears paid a $400,000 civil penalty, while three years ago EPA imposed a record $500,000 civil penalty on Lowe's for alleged violations of the Lead Paint Renovation, Repair and Painting (RRP) rule
"SEC regulations require us to disclose certain information about proceedings arising under federal, state or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions of $100,000 or more," THD said today in the "legal proceedings" section of its annual report. "In January 2017, the company became aware of an investigation by the EPA’s criminal investigation division into the company’s compliance with lead-safe work practices for certain jobs performed through our installation services business. The company has also previously responded to civil document requests from several EPA regions. The company is cooperating with the EPA."
Use of lead paint in homes was banned in 1978 because it was found to damage the health of residents, particularly developmental disabilities and behavioral disorders--even seizures and death--mainly involving infants, small children, and the elderly. The RRP rule seeks to minimize the harms that could come when lead paint on the walls is disturbed during renovation projects.
The Seeking Alpha website was among the first to spot THD's news.
