2011 CPEO Brownfields List Archive

From: Ben Neal <bennealsemail@gmail.com>
Date: Wed, 16 Feb 2011 10:26:57 -0800 (PST)
Reply: cpeo-brownfields
Subject: [CPEO-BIF] EPA's Inspector General reviews AllAppropriate Inquiries reports
 
Larry - "the industry" is hardly a monolith. As in pretty much any human commercial endeavor, in the consulting world there are those who seek to gain business
by cutting cost and quality as a strategy for increasing their revenue; at least in the short term. The legal profession, I'm quite confident, is not immune.

I can assure you that there are many firms in the environmental consulting industry who do Phase I work only reluctantly, and only for carefully selected clients;
if they do it at all. ÂNot just because it's a low-margin service, but because the risk is so profoundly inconsistent with any reward. ÂAnd -- because of the presence
of low-margin low-quality consultants -- the price expectations of many clients and their legal counsel are poorly calibrated.

Rather than pointing fingers, perhaps we should brainstorm solutions. One solution is education. ÂIf you expect to pay $3,000 or $5,000 for a Phase I study, you should know that you have a high probability of getting a very poor quality product. ÂWouldn't it be nice if clients knew that? ÂIt would also be nice if the attorneys, who inevitably are involved in these kinds of transactions, advised their clients of that. ÂSome do. ÂI know a few. ÂI value them like gold.

I don't know what to do about the fly-by-night low-cost commodity Phase I consultant shops. ÂMaybe if there were fewer clients willing to buy a $5,000 Phase I there would be fewer consultants offering it. ÂI think we all have a role in educating clients. How best to do that? I'm open for suggestions.

Another solution might be to tighten the requirements of who is allowed to do Phase I work, with real consequences for those who fail to meet expectations. I don't agree with Lenny's suggestion that Phase I reports should routinely be disclosed to government regulators. ÂMany Phase I projects are done for tentative reasons: speculation or anticipatory due diligence. In my opinion, those should be able to remain confidential.

It's a tough question. ÂHow do we counteract the price pressure on a service the market considers to be a commodity, when in reality with each incremental decrease in fee, the risk to the buyer increases?

I don't have the answers. ÂBut I know the source of the problem is not solely an industry that "does all it can to commoditize their work." The reality is more complex than that.

Ben Neal

------------------------------
------------------------------------------
Re: [CPEO-BIF] EPA's Inspector General reviews AllAppropriateInquiries reports
brownfields-bounces@lists.cpeo.org <mailto:brownfields-bounces@lists.cpeo.org> [brownfields-bounces@lists.cpeo.org <mailto:brownfields-bounces@lists.cpeo.org>] on behalf of Larry Schnapf [larry@schnapflaw.com <mailto:larry@schnapflaw.com>]
Sent: Â Tuesday, February 15, 2011 5:49 PM
To: Â Â
'R CHAPIN' [rwc27q@verizon.net] <https://legacy.ch2m.com/owa/?ae=Item&t=IPM.Note&a=New&to=rwc27q%40verizon.net&nm=%27R+CHAPIN%27>; 'Jerry Kubal' [jerry@kubalassoc.com] <https://legacy.ch2m.com/owa/?ae=Item&t=IPM.Note&a=New&to=jerry%40kubalassoc.com&nm=%27Jerry+Kubal%27>
Cc: Â Â
'Brownfields Internet Forum' [brownfields@lists.cpeo.org] <https://legacy.ch2m.com/owa/?ae=Item&t=IPM.Note&a=New&to=brownfields%40lists.cpeo.org&nm=%27Brownfields+Internet+Forum%27>
Attachments: Â Â
ATT00001.txtâ (224 Bâ) <https://legacy.ch2m.com/owa/attachment.ashx?attach=1&id=RgAAAACl2eHLflTREZ7oAIBf1MitBwBx4o3TQErREZ7lAIBf1MitAAAABdxGAADiYAlsyYsEQrntj1VTAh9LAANrlN9qAAAJ&attid0=EAD5yEvY5t3mSagCOCOi%2bvvm&attcnt=1>


We cant really blame clients without sophisticated environmental knowledge Âbeing unable to discern the value of well-prepared reports when the industry does all it can to commoditize their work

Â
Lawrence Schnapf

Schnapf Law Office

55 East 87th Street #8B

New York, New York 10128

212-756-2205 (p)

212-646-8483 (c)

Larry@SchnapfLaw.com <https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

www.SchnapfLaw.com <https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

Â
Named to Chambers USA 2009-10 Client Guide of Americaâs Leading Lawyers for Business.

AV Preeminent Rating from Martindale-Hubbell

Â
Listed in 2010 New York Super Lawyers-Metro Edition

Â
Blog: Visit Schnapf Judgment on the commonground community at
http://commonground.edrnet.com/resources/9d51c3f88e/summary <https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

Â
Â
Linked-In Blog: Environmental Issues in Business Transactions
http://www.linkedin.com/groups?mostPopular=&gid=3607181 <https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

------------------------------------------------------------------------


From: R CHAPIN [mailto:
rwc27q@verizon.net <mailto:rwc27q@verizon.net>]
Sent: Tuesday, February 15, 2011 4:47 PM
To: Jerry Kubal; larry@schnapflaw.com <mailto:larry@schnapflaw.com>
Cc: Brownfields Internet Forum
Subject: Re: [CPEO-BIF] EPA's Inspector General reviews AllAppropriateInquiries reports

Â
I strongly agree with Jerry. ÂWhen the client selects low bid they typically what they paid for.
Â
________________________________________________
Richard W. Chapin, M.S., P.E., BCEE
President, Chapin Engineering
27 Quincy Road, Basking Ridge, NJ 07920
908-647-8407 908 625 5697 (cell) 908-647-6959 (fax)

Â
Â
Â
----- Original Message -----

 ÂFrom: Jerry Kubal
 Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>


 ÂTo:
larry@schnapflaw.com
 Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>


 ÂCc: Brownfields Internet Forum
 Â<
https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>


 ÂSent: Tuesday, February 15, 2011 4:24 PM

 ÂSubject: Re: [CPEO-BIF] EPA's Inspector General reviews All
 ÂAppropriateInquiries reports

 Â
 ÂThese have become a commodity and are priced accordingly. Phase I
 Âreports cannot be done properly for the amount of money paid to
 Âconduct them. Expenses eat up more than half the cost and that only
 Âleaves time for junior, lower billiability rate staff to spend any
 Âtime on interpretation. ÂThese things are the equivalent of a loss
 Âleader. When you have junior staff do the work and a P.G. takes 15
 Âminutes to review and sign them, there is a tendency to turn these
 Âinto marketing reports by finding something that will result in a
 ÂPhase II follow-on so some of the actual cost incurred can be
 Ârecovered.

 Â
 ÂWe won't do these types of investigations unless they're for an
 Âexisting client that understands what it takes to do one properly
 Âand is willing to pay accordingly. Unfortunately, the big consumer
 Âof these reports is typically a financial institution that will pick
 Âthe low bidder and then require ridiculous amounts of professional
 Âliability insurance to cover their rear ends because they know a
 Âcertain number of these are going to be substandard.

 Â
 ÂSame sorry state of affairs in the UST business. If you think AAI's
 Âare bad, pick up and read a typical UST report some day. That will
 Âreally scare you.

 Â
 ÂI get tired of hearing all the complaints about the shoddy work of
 Âconsultants when in most cases it's the end user that drives the
 Âquality of the work product. When it's all said and done, you
 Âtypically get what you pay for. Professional services and work
 Âproducts aren't exempt from this. General Electric's policy to
 Âreverse auction professional services is probably one of the most
 Âdegrading experiences you can ever be subjected to as a consultant.
 ÂAnd, over and over, they're getting exactly what they don't pay for.

 Â
 ÂJerry E. Kubal, P.G.

 ÂKubal & Associates, Inc.

 ÂP.O. Box 273210

 ÂTampa, FL Â33688-3210

 Â813-265-2338 (Office)

 Â813-503-6493 (Cell)

 Â
 Â
 Â
 Â
 Â
 ÂOn Feb 15, 2011, at 3:33 PM,
larry@schnapflaw.com
 Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>
 Âwrote:



 ÂI could speak hours on the volume of crappy and substandard phase 1
 Âreports that are produced each year by so-called "commodity shops".
 ÂThey typically miss historical contamination and prior uses, nearby
 Âplumes that may be impacting a site, vapor intrusion, old tanks.
 Âexistence of prior bombing ranges- the list goes on.

 Â
 ÂThe problem was always there but EPA's AAI facilitated this mess by
 Âdiluting the definition of EP. We should have mandatory state
 Âlicensing for EPs who could then lose their licenses if they
 Âcontinue to crank out (some would say spit out) these terrible phase
 Â1 reports.

 Â
 ÂLarry
 ÂSchnapf Law Offices   55 East 87th Street, Ste. 8B
 ÂNew York, NY 10128
 Â212-756-2205 (p)   646-468-8483 (c)
 ÂLarry@SchnapfLaw.com
 Â<
https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

 Â
http://www.SchnapfLaw.com/
 Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>

 ÂNamed to Chambers USA 2009-10 Client Guide of America?s Leading
 ÂLawyers for Business.

 ÂAV Preeminent Rating from Martindale-Hubbell

 ÂListed in 2010 New York Super Lawyers-Metro Edition

 Â
   Â-----Original Message-----
   ÂFrom: Trilling, Barry [mailto:
BTrilling@wiggin.com
   Â<mailto:BTrilling@wiggin.com>]
   ÂSent: Tuesday, February 15, 2011 02:50 PM
   ÂTo: lsiegel@cpeo.org
   Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>,
   Â'Brownfields Internet Forum'
   ÂSubject: Re: [CPEO-BIF] EPA's Inspector General reviews All
   ÂAppropriate Inquiries reports

   ÂHaving seen this curse spread in both the public and private
   Âsectors, I favor the enactment of legislation or promulgation of
   Âregulation that will give EPA and state agencies the authority
   Âto issue monetary sanctions and/or lift the license to practice
   Âof so-called environmental professionals who certify compliance
   Âwith the regulatory standard when it is far from the truth to do
   Âso. Corporate officials who certify statements submitted to EPA
   Âare subject to criminal penalties; these folks who louse up the
   Âprocess for everyone else and endanger human health and the
   Âenvironment by doing so should also be subject to punishment.
   ÂBarry J. Trilling ÂW I G G I N ÂA N D ÂD A N A -----Original
   ÂMessage----- From:
brownfields-bounces@lists.cpeo.org
   Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>
   Â[mailto:
brownfields-bounces@lists.cpeo.org
   Â<mailto:brownfields-bounces@lists.cpeo.org>] On Behalf Of Lenny
   ÂSiegel Sent: Tuesday, February 15, 2011 2:24 PM To: Brownfields
   ÂInternet Forum Subject: [CPEO-BIF] EPA's Inspector General
   Âreviews All Appropriate Inquiries reports [This new reports
   Âfinds that EPA does not normally review All Appropriate
   ÂInquiries reports submitted by Brownfields Assessment grantees,
   Âand that those reports often do not meet the legal requirements
   Âunder the AAI rule. What can and should be done to improve the
   Âquality of those reports? What can and should be done to ensure
   Âthat AAI reports prepared for other purposes meet the legal
   Ârequirements? Does anyone have evidence of serious on-the-ground
   Âconsequences of poor AAI documentation?- LS] EPA Must Implement
   ÂControls to Ensure Proper Investigations Are Conducted at
   ÂBrownfields Sites U.S. EPA Office of Inspector General Report
   ÂNo. 11-P-0107 February 14, 2011 At a Glance What We Found EPA
   Âdoes not review AAI [All Appropriate Inquiries] reports
   Âsubmitted by grantees to assure that they comply with federal
   Ârequirements. Rather, EPA has relied on the environmental
   Âprofessional conducting the AAI to self-certify that
   Ârequirements are met. Of the 35 AAI reports we reviewed, from
   Âthree EPA regions, none contained all the required documentation
   Âelements. This occurred because the Agency does not have
   Âmanagement controls requiring EPA project officers to conduct
   Âoversight of AAI reports. Management controls regarding EPA
   Âoversight of Brownfields grants funded by the American Recovery
   Âand Reinvestment Act of 2009 (ARRA) are also missing. EPA has
   Âissued specific guidance and management controls for ARRA grant
   Âactivities. However, the guidance and controls do not address
   Âoversight of AAI reports. Because of EPA's lack of oversight and
   Âreliance on environmental professionals' self-certifications,
   ÂAAI investigations not meeting federal requirements may go
   Âundetected by Agency staff. The Office of Inspector General
   Âfound instances of noncompliance that were not detected by
   ÂAgency staff. Improper AAI investigations introduce risk that
   Âthe environmental conditions of a property have not been
   Âproperly or adequately assessed, which may lead to improper
   Âdecisions about appropriate uses of brownfields properties.
   ÂUltimately, threats to human health and the environment could go
   Âunrecognized. Noncompliant AAI investigations may result in
   Âfuture grant denials and possible government reimbursement. The
   ÂAAI reports the OIG reviewed were generated from $2.14 million
   Âin grant awards. If conditions merit, EPA is authorized to take
   Âback funds from noncompliant grantees. The OIG questions the
   Âvalue of the reports we reviewed. What We Recommend We recommend
   Âthat EPA establish accountability for compliant AAI reports, to
   Âinclude those conducted under ARRA Brownfields grants; develop a
   Âplan to review AAI reports to determine the reports' compliance
   Âwith AAI documentation requirements; and establish criteria to
   Âdetermine whether noncompliant grantees should return federal
   Âgrant money. The Agency did not clearly agree or disagree with
   ÂOIG recommendations. In its final response to the report, the
   ÂAgency needs to agree or disagree with recommendations and, as
   Âappropriate, provide a corrective action plan to address the
   Ârecommendations. To download the full 19-page 140 KB report, go
   Âto http://www.epa.gov/oig/reports/2011/20110214-11-P-0107.pdf
   Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>
   Â-- Lenny Siegel Executive Director, Center for Public
   ÂEnvironmental Oversight a project of the Pacific Studies Center
   Â278-A Hope St., Mountain View, CA 94041 Voice: 650/961-8918 or
   Â650/969-1545 Fax: 650/961-8918
http://www.cpeo.org
   Â<https://legacy.ch2m.com/owa/redir.aspx?C=d8d51f5696e141e2b0bb462801bc9b3c&URL="">>
   Â_______________________________________________ Brownfields
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--


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org
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