Proposed Changes to ASTM Standards for Phase I Environmental Site Assessments

Phase I Environmental Site Assessments (ESAs), often associated with real estate transactions, are typically performed under the standard ASTM E1527-05 format developed by the American Society for Testing and Materials. Some major changes have been proposed to these standards that are set to potentially take effect as early as the spring of 2013. These changes have the potential to: 1) Increase time and costs associated with completing a typical Phase I Site Assessment, 2) Redefine important language within the standard, and 3) Establish additional terms and requirements that will be incorporated into the ESAs. The proposed new standard will be ASTM E1527-13 (for 2013), and is in the final stages of approval and public comment.

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What are the Changes?

1) The definition of a Recognized Environmental Condition (REC) has been re-worded, and is now consistent with the CERCLA definition of a release ("any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment"). This means that vapor intrusion will now be considered a release, therefore, a vapor intrusion screening must be included in the scope of work of a Phase I ESA to be consistent with E1527-13.

2) The definition of a Historical REC (HREC) has been elaborated, and now indicates that an HREC can only be defined as such if the expert identifies that the site has been cleaned up to all current standards, and that no land use restrictions or other activities exist.

3) Because of the change to HRECs, a new term has been added to the standard, called a "Controlled Recognized Environmental Condition," (CREC). This is a case where a site has been cleaned up with conditions, such as some level of activity or land use restrictions that still remain in effect.

4) E1527-13 proposes to require regulatory file reviews of adjacent properties for a Phase I. In the past, the environmental professional used his or her discretion when deciding to perform a file review of an adjacent property. The requirement to do so for all Phase I's (unless there is some justification that it is not warranted) may impact the time and cost needed to perform such reviews.

5) Other anticipated changes include items such as revisions to the User Responsibilities section, particularly as it relates to environmental lien search requirements.

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What do These Changes Really Mean?

Other than language modifications, these changes will result in additional items in the Scope of Work of a Phase I ESA (vapor intrusion screening) and a likely increase in the number of regulatory file reviews for each site. This will result in additional time and cost to complete a typical Phase I ESA, but will also produce a report that contains more information that will help the User navigate through the due diligence process and expedite the property transaction. 

Contact Pyramid today and speak with one of our environmental professionals to find out how these changes may affect your business!