Stantec Settles U.S. False Claims Allegations for $4 Million Over EPA Brownfields Grants

Edmonton, July 8, 2025 — Edmonton-based engineering and design firm Stantec Inc. has agreed to pay US$4 million (C$5.5 million) to resolve allegations that it violated the U.S. False Claims Act in connection with federal Environmental Protection Agency (EPA) brownfields grants, the U.S. Department of Justice announced this week.

The settlement stems from claims that between 2014 and 2022, Stantec subsidiaries including Stantec Consulting Services and Cardno Consulting, acquired by Stantec in 2021 improperly helped draft requests for proposals and statements of work for EPA brownfields assessment grants, then competed for and won those same grants.

Federal regulations strictly prohibit contractors involved in drafting specifications or requirements for grant-funded projects from later bidding on those contracts to ensure fair competition.

“The EPA’s Brownfields Grant Program aims to help communities around the country transform contaminated sites into community assets,” said acting EPA inspector general Nicole Murley in a statement. “Fair competition is critical to the integrity of this program, and the EPA Office of Inspector General will vigorously pursue allegations of false certifications to protect both the program and the taxpayer dollars that fund it.”

The EPA’s brownfields assessment grants typically range from US$200,000 to $2 million and fund environmental assessments and cleanup planning for contaminated sites like abandoned gas stations and dry cleaners.

Under the settlement, Stantec has agreed to pay nearly US$2.7 million (C$3.6 million) in restitution, but the company did not admit to any wrongdoing or liability.

In a statement to CTVNews.ca, a Stantec spokesperson said the company has “diligently followed EPA guidance on procurement requirements” for more than 30 years and opted to settle “to avoid the costs, inconvenience and intrusion of further investigation.”

“Our practices for the procurement of brownfield grant writing and redevelopment design projects remain unchanged. We stand firmly by the quality, nature and unparalleled attention to ethics and compliance in our work,” the spokesperson said.

Founded in Edmonton in 1954, Stantec employs about 32,000 people worldwide and has participated in high-profile projects such as the Keystone Pipeline and the Panama Canal expansion. The company was recently recognized by Time Magazine as one of the world’s most sustainable companies, though it has faced criticism in Toronto for its work with the Ontario government on bike lane removals.

The U.S. Department of Justice emphasized that compliance with federal grant regulations is non-negotiable. “The department will hold accountable those who undermine the integrity of the federal grant process by falsely certifying compliance with regulations designed to prevent unfair competitive advantage,” said assistant attorney general Brett A. Shumate.

Since 2000, Stantec has secured or implemented more than 550 EPA brownfield grants across 45 U.S. states, with its website stating, “We approach brownfields as development projects, not costly clean-up jobs,” and noting it has helped facilitate over $1 billion in EPA grants.