EPA v. CHICAGO PUBLIC SCHOOL

Case summary

EPA AWARDED A $16 MILLION LOAN TO THE CHICAGO PUBLIC SCHOOLS (CPS) IN 1993 FOR ASBESTOS ABATEMENT PROJECTS AT 20 CITY SCHOOLS UNDER THE ASBESTOS SCHOOL HAZARD ABATEMENT ACT (ASHAA). THIS AWARD, THE LARGEST SINGLE AWARD EVER MADE UNDER THE ASHAA PROGRAM, WAS GIVEN IN THE FINAL YEAR OF THIS FINANCIAL ASSISTANCE PROGRAM, AND ALL WORK WAS TO HAVE BEEN COMPLETED WITHIN TWO YEARS. AT THE TIME OF PROJECT COMPLE- TION, CPS WAS REQUIRED TO ACCOUNT FOR ITS EXPENSES, TO CERTIFY THAT ALL WORK WAS COMPLETE, AND THAT THE SCHOOL SYSTEM WAS IN FULL COMPLIANCE WITH EPA'S ASBESTOS-CONTAINING MATERIALS IN SCHOOLS RULE (THE AHERA REGULATION ). CPS WAS SIGNIFICANTLY DELAYED IN COMPLETING THE FINAL PHASE OF ITS ABATEMENT WORK (AT THE DUMAS SCHOOL), UNTIL AUGUST, 1999, AND WAS NOT ABLE TO SUBMIT IT'S FINAL ACCOUNTING OF PROJECT EXPENDITURES UNTIL JANUARY, 2000. AT THAT TIME, CPS DETER- MINED THAT IT HAD OVERDRAWN MORE FROM ITS LETTER-OF-CREDIT THAN IT COULD ACCOUNT FOR HAVING ACTUALLY SPENT FOR ABATE- MENT. IN ADDITION, CPS WAS UNABLE TO CERTIFY ITS FULL COMPLIANCE WITH THE AHERA STANDARDS BECAUSE OF RECORD-KEEP- ING DEFICIENCIES AND A GENERAL LACK OF PROJECT DOCUMENTATION THESE CIRCUMSTANCES HAVE PREVENTED A TIMELY AND SATIFACTORY CLOSEOUT OF THIS EXISTING LOAN. REGION 5 HAS BEEN WORKING CLOSELY WITH CPS TO BRING THESE ISSUES TO A TIMELY RESOLUTION. CPS HAS RECENTLY CORRECTED A VARIETY OF REGULATORY DEFICIENCIES IT HAD BEEN CITED FOR UNDER AN EARLIER NOTICE OF NON-COMPLIANCE (NON), AND AT EPA'S REQUEST, REINSPECTIONS WERE PERFORMED AT ALL 20 OF THE PROJECT SCHOOLS TO DEMONSTRATE CURRENT COMPLIANCE WITH THE AHERA REGULATIONS. ALL OF THE SCHOOLS PASSED INSPECTION. CPA HAS ALSO RECENTLY REPAID EPA FOR THE FULL OVERDRAFT AMOUNT OWED UNDER THE LOAN. AS THE FINAL STEP IN CLOSING OUT THE LOAN, REGION 5 PLANS TO ENTER INTO A CONSENT AGREEMENT/FINAL ORDER (CAFO) WITH CPS THAT WILL PROVIDE FOR THE NECESSARY PROJECT CERTIFICA- TIONS. THIS ALTERNATIVE PROCEDURE IS NECESSARY, BECAUSE CPS CANNOT OTHERWISE MAKE THE REGULATORY CERTIFICATION THAT IS CUSTOMARY TO CLOSING OUT AN ASHAA LOAN. ONCE THE CAFO, WHICH HAS BEEN SENT TO CPS FOR SIGNATURE, IS SIGNED, THE HEADQUARTER'S GRANTS DIVISION WILL BE CLEAR TO COMPLETE FINAL ADMINISTRATIVE CLOSEOUT.

Defendants (1)

• CHICAGO PUBLIC SCHOOLNamed in settlement

Facilities (1)

• CHICAGO PUBLIC SCH

  125 S CLARK ST, CHICAGO, IL, 60603

  Registry ID: 110010598237

Statutes cited

• TSCA 206 — Contractor Laboratory Accreditation

Enforcement conclusions (1)

• CHICAGO PUBLIC SCHOOLentered 2001-04-18

  Primary law: TSCA

Timeline (4 milestones)

• 2001-04-18Complaint Filed/Proposed Order
• 2001-04-18Final Order Issued
• 2001-04-18Enforcement Action Closed
• 2001-07-10Enforcement Action Data Entered