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£	\	Off i no r>f Incnortnr fionoi-al	February 14, 2011
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	 \ Office of Inspector General
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At a Glance
Catalyst for Improving the Environment
Why We Did This Review
We conducted this review to
evaluate how the U.S.
Environmental Protection
Agency (EPA) is ensuring that
Brownfields Assessment
grantees adhere to all
appropriate inquiries (AAI)
requirements.
Background
Grantees awarded EPA
Brownfields Assessment
grants must meet AAI
requirements. AAI is the
process of evaluating a
property for potential
environmental contamination
and assessing potential
liability for contamination. To
ensure a proper investigation,
grantees must conduct AAI in
compliance with federal
regulations put into effect by
EPA on November 1, 2006,
and issue a report on findings.
For further information,
contact our Office of
Congressional, Public Affairs
and Management at
(202) 566-2391.
The full report is at:
www.epa.qov/oiq/reports/2011/
20110214-11 -P-0107.pdf
EPA Must Implement Controls to Ensure Proper
Investigations Are Conducted at Brownfields Sites
What We Found
EPA does not review AAI reports submitted by grantees to assure that they
comply with federal requirements. Rather, EPA has relied on the environmental
professional conducting the AAI to self-certify that requirements are met. Of the
35 AAI reports we reviewed, from three EPA regions, none contained all the
required documentation elements. This occurred because the Agency does not
have management controls requiring EPA project officers to conduct oversight of
AAI reports. Management controls regarding EPA oversight of Brownfields grants
funded by the American Recovery and Reinvestment Act of 2009 (ARRA) are
also missing. EPA has issued specific guidance and management controls for
ARRA grant activities. However, the guidance and controls do not address
oversight of AAI reports.
Because of EPA"s lack of oversight and reliance on environmental professionals"
self-certifications, AAI investigations not meeting federal requirements may go
undetected by Agency staff. The Office of Inspector General found instances of
noncompliance that were not detected by Agency staff. Improper AAI
investigations introduce risk that the environmental conditions of a property have
not been properly or adequately assessed, which may lead to improper decisions
about appropriate uses of brownfields properties. Ultimately, threats to human
health and the environment could go unrecognized.
Noncompliant AAI investigations may result in future grant denials and possible
government reimbursement. The AAI reports the OIG reviewed were generated
from $2.14 million in grant awards. If conditions merit, EPA is authorized to take
back funds from noncompliant grantees. The OIG questions the value of the
reports we reviewed.
What We Recommend
We recommend that EPA establish accountability for compliant AAI reports, to
include those conducted under ARRA Brownfields grants; develop a plan to
review AAI reports to determine the reports" compliance with AAI documentation
requirements; and establish criteria to determine whether noncompliant grantees
should return federal grant money. The Agency did not clearly agree or disagree
with OIG recommendations. In its final response to the report, the Agency needs
to agree or disagree with recommendations and, as appropriate, provide a
corrective action plan to address the recommendations.

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