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 <title>Drinking Water: Revisions to EPA&apos;s Cost Analysis for the Radon Rule Would Improve Its Credibility and Usefulness</title>
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<abstract>The Safe Drinking Water Act requires the Environmental Protection
Agency (EPA) to set a drinking water standard for radon. In a	 
proposed rule issued in November 1999, EPA presented a unique and
complex drinking water regulation for radon. GAO found that EPA&apos;s
analysis of the costs to implement the proposed radon rule has	 
several strengths. EPA&apos;s estimates of the typical costs for water
systems to buy and install radon removal technologies--a key	 
determinant of total national costs--are reasonable for 	 
estimating national compliance costs. Moreover, EPA used	 
recommendations from an expert panel to estimate the costs to	 
install and maintain radon removal equipment. EPA also developed 
a range of annual cost estimates, rather than a single estimate, 
to account for uncertainty about the extent to which the less	 
costly alternative standard will be adopted by states. EPA&apos;s	 
analysis of the national annual costs to comply with its proposed
radon drinking water rule has several limitations that, if	 
corrected, would likely increase EPA&apos;s best estimate of these	 
costs. EPA made two errors in estimating the various costs	 
associated with programs to reduce radon levels in indoor air	 
under the alternative standard--one that understated radon	 
testing and mitigation costs by $37 million and another that	 
overstated administrative costs by $31 million--resulting in a	 
combined understatement of costs by $6 million. In addition,	 
EPA&apos;s exclusion of &quot;mixed&quot; water systems, which use a mix of	 
groundwater and surface water sources, effectively understated	 
compliance costs by about $17 million.</abstract>
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 <topic>Cost control</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Hazardous substances</topic>
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 <topic>Radiation exposure hazards</topic>
 <topic>Water pollution control</topic>
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