For the first time since EPA’s All Appropriate Inquiries (AAI) rule requiring prospective purchase of industrial or commercial properties to perform Phase I Environmental Site Assessments was issued, revisions have now been proposed.
EPA’s AAI standards are promulgated under 40 CFR Part 312, and the American Society for Testing & Materials (ASTM) is revising ASTM E1527-05, the guidance document that sets forth the required tasks that must be completed to conform to EPA’s standards. ASTM’s Committee E50 on Environmental Assessment, Risk Management and Corrective Action, formed in 1990, meets twice annually to address various technical issues. The Committee, whose membership consists of approximately 800 persons, regularly reviews existing standards to evaluate the need for revisions as a means to improve environmental management.
In September of this year, the subcommittee that addresses environmental due diligence for real estate transactions believed that clarifying language in various sections of the standard would be helpful.
Some of the key changes proposed include:
- The term, Migration, has been added to the definitions sections of the standard. Within the definition, there is a reference to ASTM’s E2600-10 standard related to vapor encroachment screening for indoor air quality in the vicinity of contaminated properties. This officially links AAI and E1527-05 with ASTM’s vapor intrusion screening assessment and sets forth a requirement to conduct such screening where warranted.
- Clarifications to the definition of Recognized Environmental Conditions (REC) definition along with an expanded definition for an existing term, the Historical REC (HREC), and the definition of a new term, the Controlled REC (CREC). An HREC is a REC that exists on the site, but which has been addressed to the satisfaction of the regulatory agencies and no longer poses a material threat of a release of petroleum or hazardous substances due to past corrective actions and for which there is no restricted use of the property. A CREC on a site includes the site or portion thereof, where contamination remains in place, but where such contamination is controlled through an environmental covenant or deed restriction, and/or engineering controls and where such controls have been approved or accepted by the regulatory agencies.
- Enhanced descriptions of what is required of the User of the report, and why it is important. The User of the Phase I ESA report is Midwest’s client. Most Users who are not counseled by an attorney do not fully understand their responsibilities under the AAI standard to assure that they are eligible for CERCLA (Superfund) liability relief. The proposed changes affect and enhance the User’s requirements to conduct a search for environmental liens and Activity or Use Limitations (AULs) related to the subject property and inform the Environmental Professional of any findings, including circumstances where no environmental liens or AULs exist, but where commonly known information about the property exists within the community.
- A new requirement to review regulatory agency files related to RECs encountered on the site. Such review of regulatory agency file records has been standard practice by Midwest Environmental Services. Now our competitors will have to come up to our standards and review regulatory records for relevant documents related to RECs associated with a site.
Additionally, dozens of editorial changes are proposed for the 2013 version of ASTM guidance. Committee member voting was conducted in mid-October 2012. The task group will soon meet to determine the results of balloting and prepare the final language for inclusion in the standard.
Are you planning to purchase or finance the purchase of commercial or industrial property? Know what is required to protect your business from potentially severe environmental liabilities. Midwest Environmental Services, Inc.’s, Consulting Services Division, can assist you with solutions to all your questions related to environmental compliance and risks.
Don’t wait to find out that you should have taken appropriate steps during environmental due diligence. Contact Midwest Environmental Services at 800-388-5160 or our Consulting Services Division at 502-491-0991, and inquire about environmental site assessment services as well as any environmental compliance training and auditing services needs you have.
Midwest Environmental Services, Inc. is ready to support your business’ compliance to the myriad environmental and safety regulations. Midwest Environmental Services continually works to improve our professional services to help ensure that our valuable clients receive prompt, professional attention.