We expect that ASTM will publish a revision to the ASTM E 1527 standard (Phase I ESAs) in late 2013. The 2013 version will be the sixth revision since the standard’s initial publication in 1993. The last revision to the E 1527 Standard was in 2005, after EPA’s “All Appropriate Inquiries” rule was promulgated.
Three key areas of change are described below, together with some potential implications for lenders and “users”:
- An agency “file review” is a common industry term used to describe a review by an environmental professional of files maintained by local, state, or federal authorities. The proposed standard indicates the environmental professional should do an agency file review if the subject property or an adjoining property is identified in any of the standard environmental records sources. If the EP decides not to undertake such a file review, justification for not conducting a file review must be included in the Phase I report.
- At the center of the current Phase I ESA process is the identification of “Recognized Environmental Concerns” or RECs. The proposed draft includes a simplified definition of a REC, clarification of Historical RECs (HREC) and a new term, the Controlled REC (CRECs). The draft REC definition more closely resembles the CERCLA’s text, while maintaining language from the current definition. The revised draft definition for HRECs applies to RECs that have been addressed to the satisfaction of the regulatory authority or meet unrestricted residential use criteria without subjecting the property to any required institutional or engineering controls. In contrast to HRECs, the CREC draft language will apply to past releases that were addressed, yet have contamination remaining subject to an “activity and use limitations (AULs)” such as an institutional/engineering control. The CREC provides environmental professionals with a new term to better address situations where there is a land use restriction associated with the cleanup. The revised standard specifies that CRECs are to be considered RECs.
- Another definition being proposed is “migrate and/migration,” relating to both contaminated groundwater and vapor migration. The proposed standard makes it clear that vapor migration should be considered no differently than contaminated groundwater migration in Phase I investigations. The change also establishes a standardized definition consistent with the existing CERCLA and AAI definitions of a release (e.g., solid, liquid and vapor) to the environment. The new standard will specifically reference the ASTM E 2600-10 Vapor Encroachment Standard Guide as the methodology for assessing vapor migration in Phase I investigations.
ASTM has submitted the revised standard for EPAs’ review. The EPA will review the revisions to ensure that the standard is still consistent with the AAI Rule. If approved by EPA, ASTM will publish the standard as E1527-13. We expect this will happen toward the end of 2013.