Title of Regulation: 16VAC25-20. Regulation Concerning Licensed Asbestos Contractor Notification, Asbestos Project Permits, and Permit Fees (amending 16VAC25-20-40).

Statutory Authority: §§ 40.1-22 and 40.1-51.20 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: July 31, 2013.

Effective Date: August 15, 2013.

Agency Contact: John Crisanti, Planning and Evaluation Manager, Department of Labor and Industry, Main Street Centre, 600 East Main Street, Richmond, VA 23219, telephone (804) 786-4300, FAX (804) 786-8418, TTY (804) 786-2376, or email john.crisanti@doli.virginia.gov.

Basis: Pursuant to § 40.1-22 of the Code of Virginia, the board, with the advice of the commissioner, is authorized to adopt, alter, amend, or repeal rules and regulations to further, protect, and promote the safety and health of employees in places of employment over which it has jurisdiction. All such rules and regulations shall be designed to protect and promote the safety and health of such employees. This amendment supports that statutory mandate.

Purpose: The purpose of this regulatory action is to delete the requirement in 16VAC25-20-40, necessitating notification to the department of residential asbestos projects because Virginia law does not require a permit fee for such asbestos projects in residential buildings. New regulatory language has been inserted stating that no notification to the department or payment of asbestos project fees is required for asbestos projects in residential buildings as defined under 16VAC25-20-10.

Rationale for Using Fast-Track Process: Most residential asbestos projects now fall within the minimum reporting amount (10 square or 10 linear feet up to 260 linear feet or 160 square feet), and jobs of this size present a small risk to the public, require fewer inspections, and are of short duration. Therefore, eliminating the notification requirements for residential buildings will minimize the paperwork burden for asbestos contractors and also for homeowners. As such, amending the regulation is noncontroversial, and no individual or entity will be adversely affected.

Substance: In 16VAC25-20-40, the language "No asbestos project fees will be required for residential buildings. Notification for asbestos projects in residential buildings shall otherwise be in accordance with applicable portions of this chapter," was replaced with "No notification to the department or payment of asbestos project fees is required for asbestos projects in residential buildings as defined under 16VAC25-20-10." While residential buildings are covered under this Virginia Occupational Safety and Health (VOSH) program, the procedure required for such structures does not include payment of a fee, therefore, the board approved the discontinuance of the requirement for notification of residential asbestos project by replacing the regulatory language requiring it.

Issues: The department does not anticipate any disadvantages to Virginia employers or Virginia employees. Most residential asbestos projects fall within the minimum reporting amount (10 square or 10 linear feet up to 260 linear feet or 160 square feet). Jobs of this size present a small risk to the public, require fewer inspections, and are of short duration. Advantages to the public, private citizens, or businesses from the elimination of the notification requirements for residential buildings will include minimizing the paperwork burden for asbestos contractors and also for homeowners.

The department does not anticipate any disadvantages to the department with the adoption of these changes. Eliminating the notification requirements for residential buildings will reduce the number of applications the department will have to process.

There are no disadvantages to the public or to the Commonwealth.

The department believes that these amendments are noncontroversial, and no individual or entity will be adversely affected.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Safety and Health Codes Board (Board) proposes to amend its regulations that govern licensed asbestos contractor notification, asbestos project permits and permit fees to eliminate a requirement that the Department of Labor and Industry (DOLI) receive notification of asbestos projects in residential buildings.

Result of Analysis. Benefits likely outweigh costs for this proposed regulatory change.

Estimated Economic Impact. Currently, individuals who are removing asbestos from residential buildings (as defined by these regulations) do not have to pay a fee but do have to provide notification of the project to DOLI. The Board now proposes to amend these regulations so that notification is no longer required for projects in residential buildings that do not require payment of a fee to DOLI. No entity is likely to incur costs on account of this regulatory change. Asbestos contractors, and owners of affected properties, will benefit from not having to spend time notifying DOLI of these residential projects. DOLI will likely also see a slight benefit from not having to process these notifications.

Businesses and Entities Affected. Board staff reports that there are 180 asbestos contractors in the Commonwealth. All of these individuals, plus owners of residential properties that may have asbestos on premises, will likely be affected by this proposed regulatory change.

Localities Particularly Affected. No localities will be particularly affected by these proposed regulations.

Projected Impact on Employment. This proposed regulatory action is unlikely to have any effect on employment in the Commonwealth.

Effects on the Use and Value of Private Property. These proposed regulatory changes are unlikely to affect the use or value of private property in the Commonwealth.

Small Businesses: Costs and Other Effects. No small business is likely to incur any additional expense on account of these regulatory changes.

Small Businesses: Alternative Method that Minimizes Adverse Impact. No small business is likely to incur any additional expense on account of these regulatory changes.

Real Estate Development Costs. This regulatory action will likely have little effect on real estate development costs in the Commonwealth.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The Department of Labor and Industry concurs with the Department of Planning and Budget's economic impact analysis.

Summary:

The amendments eliminate the notification requirements to the department for asbestos projects in residential buildings defined as site-built homes, modular homes, condominium units, mobile homes, manufactured housing, and duplexes or other multi-unit dwellings consisting of four units or fewer that are currently in use or intended for use only for residential purposes. However, demolition of any such structures that are to be replaced by other than a residential building shall not fall within this definition and would be subject to payment of a fee. This action is in response to the Governor's Regulatory Reform Initiative.

16VAC25-20-40. Exemption.

No asbestos project fees will be required for residential buildings. Notification for asbestos projects in residential buildings shall otherwise be in accordance with applicable portions of this chapter. No notification to the department or payment of asbestos project fees is required for asbestos projects in residential buildings as defined under 16VAC25-20-10.