PHASE I ENVIRONMENTAL SITE ASSESSMENT We have prepared this letter to inform our valued clients of the recent and significant changes in the Phase I Environmental Site Assessment process. For years we have followed ASTM Practice E1527-00 (and earlier versions of the practice) when conducting Phase I Environmental Site Assessments for commercial property. ASTM Practice E1527-00 has been the industry standard, recognized by consultants, banks, attorneys and buyers. The process was designed to both identify potential environmental concerns related to hazardous materials and petroleum products, and to allow the user to qualify for the liability protection provided in the Superfund regulations. The Small Business Liability Relief and Brownfield Revitalization Act (Brownfield Amendments) which amended the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) was passed into law in 2002. The Brownfield Amendments required the U.S. Environmental Protection Agency to develop procedures for All Appropriate Inquiry to identify environmental concerns associated with commercial properties. The U.S. Environmental Protection Agency's final rule for All Appropriate Inquiry went into effect on November 1, 2006. Compliance with the requirement of all appropriate inquiry allows the purchaser to qualify for the additional liability protection provided in the Brownfield Amendments. The Brownfield Amendments provide liability protection for innocent landowners, contiguous property owners and bona fide prospective purchasers. The buyers must conduct an assessment in accordance with the requirements of all appropriate inquiry in order to qualify for the liability protection. The new ASTM E1527-05 Phase I Environmental Site Assessment standard is consistent with EPA's final rule and may be used to comply with the provisions of all appropriate inquiry. The final rule for All Appropriate Inquiry maintains all of the major requirements that have been traditionally performed as part of environmental due diligence and expands the scope of work for several of the components of the assessment. Major changes to the environmental assessment process brought about by the all appropriate inquiry requirements include the designation of an environmental professional, the use of "user provided data" and the procedures for handling data gaps and evaluating the historical data.
Midwest Environmental Services, Inc. |
