COVER STORY
Changes to Phase I Environmental Site Assessment Standard ( USEPA )
Not compliant as an NJ Preliminary Assessment , ESAs are often required by lenders .
By Charlene Drake LSRP , Langan
Last fall , the American Society for Testing and Materials ( ASTM ) modified the standard practice for Phase I Environmental Site Assessments ( ESA ) and the USEPA appears ready to accept the modifications this spring .
A properly conducted ESA protects your investment by identifying concerns before the property transfer to help you plan to reduce or eliminate environmental business risk . Phase I ’ s are not compliant as New Jersey Preliminary Assessment Reports but required by most lenders for property transactions as part of standard environmental due diligence .
Each time the ASTM standard practice is revised , the USEPA reviews the standard for conformance to the federal All Appropriate Inquiry rule .
In the interim , ESA practitioners may decide to use the old or new standard , or a combination that meets both standards after consulting with their counsel , lender and environmental professional .
The ASTM modifications promote consistency in the way ESAs are conducted and documented and may require more research than in the past .
The ASTM modifications include examples and a decision tree . The emphasis is on documenting lines of evidence through a thorough review of records , and a clear , convincing narrative in ESA reports . Here are a few other significant changes or clarifications .
The new standard clarifies that the first date of interviews , searches for recorded environmental cleanup liens , review of government records , or site reconnaissance triggers a 180-day period during which the ESA can be used without being updated .
Under the new standard , historical aerial photographs , city directories , topographic maps and Sanborn maps must be reviewed for the subject property and adjoining properties . Additional historical sources must be reviewed if they could identify a more-specific use and are “ reasonably ascertainable .”
Previously closed cases now require in-depth evaluation , and the author of the ESA must determine whether the environmental data meets present-day unrestricted cleanup standards .
Although many states have standards for emerging contaminants such as per- and polyfluoroalkyl substances ( PFAS ), the new ASTM standard says they do not need to be included in an ESA until they are regulated as federal CERCLA hazardous contaminants . However , such contaminants can be added as a “ Non- Scope Consideration .”
34 COMMERCE www . commercemagnj . com