The newest American Society for Testing and Materials (ASTM) standard for Phase I Environmental Site Assessments (ESAs), E1527-21, has been approved by the ASTM Committee (on Environmental Assessment, Risk Management and Corrective Action) and submitted to the Environmental Protection Agency (EPA). The EPA is expected to adopt the standard as part of the All-Appropriate Inquiries (AAI) Rule.

This updated ASTM E1527-21 standard was intended to modify the requirements for conducting Phase I ESAs and to clarify existing ambiguities definitions. A large portion of the new items in the updated standard have been incorporated into The Riley Group, Inc.’s (RGI’s) risk assessment and standard environmental due diligence reporting.

The following are notable changes from the previous Phase I ESA (E1527-13) standard to the updated Phase I ESA (E1527021) standard:

  • Activity Use Limitation (AULs) and Lien Search: The User is now required to obtain title records dating back to 1980, identifying any environmental liens or AULs on the subject Property. 
  • Historical Sources: A minimum of four specific historical resources (aerial photographs, fire insurance maps, local street directories, and historical topographic maps) are now required to assess the past use of the subject and adjoining properties (which was not required previously). 
  • Report Shelf-Life: The revised ASTM standard states a Phase I ESA report will remain viable when certain components (interviews, environmental lien search, site reconnaissance, review of records, and environmental professional statement) are completed within 180 days (6 months) prior to the date of acquisition or the date of the transaction. Consultants are required to explicitly state the date of each individual component for purposes of assessing validity. Previously the publication date of the report was frequently used to start the 180 day countdown.
  • Emerging Contaminants: “Emerging Contaminants” (other potentially hazardous substances) are now included to the list of non-scope considerations. This means a purchaser may want to evaluate (as a business risk) other chemicals of concern not yet been designated by the EPA as hazardous substances under Comprehensive Environmental Response and Compensation Act (CERCLA). Some emerging contaminants may be regulated under state law and may be federally regulated in the future. 

RGI strives to be an innovative leader in the arena of environmental due diligence, and we appreciate the provided clarity of the updated ASTM E1527-21 standard. We believe this update will overall improve the quality of the Phase I ESA reports being issued throughout the industry. RGI recommends that our clients follow the updated E1527-21 standard for all Phase I ESAs. It’s our understanding that once the EPA approves the updated ASTM standard, Phase I ESA reports following the previous standard will no longer be an affirmative defense to environmental liability imposed by CERCLA.