Elizabeth Krol
February 13, 2024
What to expect from USEPA’s updates to the ASTM Phase I ESA Standard
Last year, the United States Environmental Protection Agency (USEPA) adopted ASTM E1527-21 Standard Practice for Phase I Environmental Site Assessments (ESA) as meeting All Appropriate Inquiry (AAI) requirements for property due diligence and CERCLA liability defense. Starting February 13, 2024, only the new E1527-21 and E2247-23 Standards will be recognized by USEPA as satisfying AAI. In this article, we discuss what this means for investors, financial institutions, and attorneys.
- Important updates to “strengthen the deliverable” – which means improving the quality and utility of the Phase I ESA report. Specific requirements include site photographs, especially representative of onsite operations, as well as to demarcate findings and observations identified in the report.
- Additional strengthening is encouraged by including guidance to conduct more thorough historical research. Further clarification also outlines that historical research should include adjoining properties, going beyond the boundaries of the subject property. While some may have claimed that the information was not readily available or ascertainable, the updated standard makes it clear that a variety of historical resources may be employed, thereby making information pertaining to the historical use of the subject and adjoining properties both readily available and reasonably ascertainable. For many properties, the Phase I ESA often garners pertinent information from the “Big Four” of historical resources, which are fire insurance maps, aerial photographs, street or city directories, and historical topographic maps. To improve quality and utility in city directory research, a white paper was prepared to elevate and guide a more thorough research process CD Research White Paper 3.7.23.pdf (dropbox.com)
- It is important to note that the recently published ASTM E2247-23 Phase I ESA of Forestland and Rural Property standard has been revised to mirror the changes to ASTM E1527-21 to be in conformance with USEPA’s AAI requirements for large tracts of land including forestland and rural property.
Want to know more?
Elizabeth Krol
Principal
+1 781 820 6897
- The procedures of ASTM International Standard E1527–21 entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process.” This standard is available from ASTM International at astm.org, 1–610–832–9585.
- The procedures of ASTM International Standard E2247–16 entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.” This standard is available from ASTM International at astm.org, 1–610–832–9585.
- Until February 13, 2024, the procedures of ASTM International Standard E1527–13 entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process.” This standard is available from ASTM International at astm.org, 1–610–832–9585.[70 FR 66107, Nov. 1, 2005, as amended at 73 FR 78655, Dec. 23, 2008; 78 FR 79324, Dec. 30, 2013; 79 FR 60090, Oct. 6, 2014; 82 FR 43312, Sept. 15, 2017; 87 FR 76581, Dec. 15, 2022]