EPA: Asbestos program funding on hold during evaluation

The federal grant that funds the Lincoln County Asbestos Resource Program is on temporary hold while the Environmental Protection Agency evaluates the legality of past grant spending, the agency announced on Tuesday.

The EPA has been evaluating the ARP grant administration since May and has since asked for more information regarding the audit that found grant money may have been improperly spent on legal services, as well as further information on the legal firm that drew up the grant administration contract.

“EPA appreciates that the Lincoln County Board of Commissioners has requested our assistance with specific concerns regarding administration of the grant and is working closely with us to address this matter,” said EPA Assistant Regional Administrator Martin Hestmark in a prepared statement.

EPA public relations specialist Jennifer Harrison on Wednesday said that the ARP, which operates under the City-County Board of Health for Lincoln County to reduce asbestos exposure and complete educational public outreach, can continue to operate while the grant funding is on hold. The ARP receives the grant funding on a reimbursement basis, so Harrison said future reimbursement may be on hold as the EPA continues its evaluation.

“Funds cannot be accessed at this time,” she said. “The program can continue to operate but future reimbursement would be subject to the grant review.”

“We’ve had to place a financial hold on the cooperative agreement with the City-County Board of Health of Lincoln County due to specific concerns about grant management and inconsistencies with grant regulations,” she said.

ARP program manager Nick Raines said while the county continues to work with the EPA in search of a conclusion on the evaluation, the program will proceed with services and work as planned.

“As of right now, there will be no impact in the services we’re providing,” Raines said Wednesday. “I’ve spoken with the City-County Board of Health and they plan to continue to implement the program while the funding is under evaluation.”

The Libby CARD Clinic, which specializes in asbestos-related disease, is not funded through the ARP grant and will not be affected.

The evaluation initially began in May, when Lincoln County commissioners asked the federal agency for guidance after discovering R. Allen Payne and his legal firm, Doney Crowley Bloomquist Payne UDA, had received payments from the grant funds, which may be against federal grant funding regulations.

The EPA volleyed the commissioners’ request in August with their own request for more information, asking specifically for the county to provide the final report and analysis from Denning, Downey & Associates (the company that performed the audit finding inconsistencies in the grant payments); a detailed report for all funds that identify the source, income, expenditures and assets related to the grant money, and invoices for legal services from Payne and his firm for work completed on the grant administration.

Payne has not yet returned phone calls made by The Western News for comment.

Earlier this month, Raines and Lincoln County Commissioner Mark Peck visited EPA officials in Colorado to discuss the information requested by the EPA.

“We’re working through the issues with the EPA right now,” Raines said Wednesday. “We’re looking at a path forward for what it means and with everything the EPA has provided, we expect no interruption in the services we provide or the work ARP is doing. This is just a temporary evaluation.”

In his Tuesday statement, Hestmark underscored that the ARP itself is not at risk, as the agency is focused on grant spending. 

“The Asbestos Resource Program has been and remains a valuable resource for residents and businesses. While we are carefully evaluating circumstances related to administration of the grant, the Program’s effectiveness and importance to the local community are not in question. Our goal as we move forward is to meet our dual responsibility to secure taxpayer dollars and to ensure that these essential services continue to be delivered to the residents of Libby and Troy.”

Reporter Bethany Rolfson contributed to this report.

Reporter Seaborn Larson may be reached at 293-4124 or by email at slarson@dailyinterlake.com.