By John Kell 

Lowe's Cos. agreed to pay a $500,000 penalty stemming from environmental-related violations by the home-improvement retailer's contractors, while also agreeing to implement a program to minimize lead dust during renovations.

The settlement stems from violations discovered by Environmental Protection Agency inspectors after a review of records of completed renovations performed by contractors hired by Lowe's stores in several states.

The federal government's complaint alleged Lowe's failed to provide documentation that its contractors had been certified by the EPA, had been properly trained and had used lead-safe work practices. Additionally, the EPA alleged its investigation found Lowe's contractors failed to ensure that work areas had been properly contained and cleaned during renovations at three homes.

The EPA said its investigation was prompted by tips and complaints by homeowners.

Lowe's said it hires thousands of third-party contractors and the EPA identified only a few who failed to meet certain record-keeping or work-practice requirements regarding lead-based paint.

Lowe's spokeswoman Amanda Manna said the company has had an "aggressive lead-based paint renovation compliance program" in place since the EPA's rules went into effect.

"There have never been any reports of lead-based-paint health issues associated with any projects completed by Lowe's contractors," Ms. Manna said. She added Lowe's "cooperated with the EPA and has resolved all issues alleged by the EPA."

The civil penalty Lowe's agreed to pay is the largest ever for violations of the federal Lead Renovation, Repair and Painting Rule, the EPA and Justice Department said in a prepared statement.

The Justice Department said Lowe's also agreed to implement a corporate-wide program at its stores nationwide to ensure its contractors minimize lead dust from home renovation activities. While lead-based paint was banned in 1978, it remains in many homes and apartments across the U.S.

Write to John Kell at john.kell@wsj.com

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