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Detailed site reconnaissance requirements have been added to reinforce existing good commercial and customary practice.The revisions clarify subject and adjoining property identification, use, and research objectives (i.e., the depth of inquiry required for both the subject and adjoining properties), and new parameters have been established for the use of standard historical sources. The historical records review section has been restructured and updated to reflect good commercial and customary practice.New Definitions: The terms “Property Use Limitation” (PUL) and “Significant Data Gap,” currently undefined by ASTM, have been formally defined to clarify the meaning and use of these terms in a Phase I report.The revisions are further supported by a new appendix that provides guidance on the REC/HREC/CREC decision process, a flow chart, and representative examples of each. The definitions of those three terms have been tightened and clarified to reduce misclassifications of known or likely hazardous material and petroleum product releases affecting subject properties. Key Terminology Revisions: The terms “Recognized Environmental Condition” (REC) “Controlled Recognized Environmental Condition” (CREC) and “Historical Recognized Environmental Condition” (HREC) are key in the evaluation of property risks, but even with the definitions added to the current standard, the terms were subject to varying interpretations by environmental professionals.
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With the adoption of the revised standard, ASTM reports that it made several changes to the standard practice for Phase I environmental site assessments, including: In general, the current standard requires: (1) the review of information, including historical documents concerning the property and government regulatory records (2) interviews with present and prior owners and operators (3) a visual inspection of the subject property and adjacent properties (4) the preparation of a Phase I environmental site assessment report, which is to identify specific conditions or business environmental risks, as defined under the standards and (5) a general assessment of vapor intrusion risks.
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The current ASTM standard, E1527-13, was released in 2013, and subsequently adopted by the EPA for purposes of the AAI Rule. In 2005, EPA adopted standards and procedures for meeting the AAI requirement-namely, by complying with the ASTM standard in place at the time. As such, we expect EPA will promulgate an updated AAI Rule incorporating the revised ASTM standard (ASTM E1527-21) in the coming months.Īll Appropriate Inquiries and Defending Against Environmental LiabilitiesĬERCLA allows the government and private parties to recover their appropriate cleanup costs from any one of four categories of “covered persons:” (1) current owners and operators of a facility with contamination, (2) former owners and operators of a facility at the time that hazardous substances were disposed of at the facility, (3) parties that arranged for the disposal or treatment of hazardous substances to a contaminated facility, and (4) parties that accepted hazardous substances for transport to disposal or treatment facilities from which there is a release of hazardous substances.ĬERCLA is a strict liability statute and three of its very limited available defenses-for innocent purchasers, bona fide prospective purchasers, and contiguous property owners-require real property owners to prove that they complied with the AAI Rule prior to purchase. Revised on November 2, 2021, “ASTM E1527-21” is slated to be published late November or early December 2021. Phase I environmental site assessments facilitate commercial property transfers that satisfy EPA’s All Appropriate Inquiries (AAI) Rule, as defined by federal Superfund law (CERCLA). After a lengthy committee process, ASTM International revised its standard practice for Phase I environmental site assessments (ASTM E1527) for the first time since 2013.