NEW ASTM STANDARD FOR PHASE I ENVIRONMENTAL SITE ASSESSMENTS

The American Society for Testing and Materials has releases a new standard – ASTM E1527-13 – for Phase I environmental site assessments.  The new standard applies to Phase I’s performed after November 1, 2013 and is the first update since 2005.  Notably, it wasn’t until August 2013 that the US Environmental Protection Agency confirmed that the new standard will satisfy the “all appropriate inquiry” standard. 

A Phase I performed in accordance with the standard will satisfy most lenders and investors due diligence requirements.  Additionally, a properly performed Phase I will quality for the purchaser for “innocent landowner” or “bona fide prospective purchaser” defenses so important under federal law.

The new standard has several important changes: 1) more detailed public records review; 2) clearly classification of environmental conditions; and 3) consideration of vapor intrusion from petroleum products and hazardous substances.  The changes will increase the amount of time required to perform the review because of the increased records review burden which may require the consultant to physical access public files in addition using common records retrieval services.  Cost to the land purchaser for a typical Phase I may increase slightly because of the records review burden.  After ordering a recent Phase I that was performed in accordance with the new standard, I did not find that additional time or cost were noticeable. 

A copy of the new standard is available from ASTM at http://www.astm.org/Standards/E1527.htm.