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Wednesday, August 21, 2013

An interesting perspective on the new ASTM Phase I Standard:

EPA Proposes To Add E1527-13 to AAI Rule The good news is that EPA has proposed to amend its AAI rule so that the new ASTM E1527-13 will satisfy the requirements of AAI. The bad news is that EPA has declined to delete E1527-05 from the AAI rule. As a result, property owners and lenders will be able to continue to use E1527-05, thereby undermining the changes to the ASTM standard that were achieved after a protracted process. EPA published a proposed rule and final direct rule in the August 15th federal register. If no adverse comments are received, the final direct rule will become effective in November. If EPA receives adverse comments, it will withdraw the final rule and respond to the comments. The direction that EPA has taken seems ill-advised to this observer. Among the changes in E1527-13 is a presumption that agency files be reviewed as part of the phase 1 process. EPA seems to believe that users will migrate to using E1527-13. However, it is anticipated that E1527-13 will be more costly than E1527-05 because of the time involved to review agency files. Moreover, many of the high volume phase 1 shops were not happy with presumption of doing agency file reviews because it complicated their business model which consists of relying on a high percentage of independent contractors or "1099" employees. Currently, many of these phase 1 operations charge extra for the file review...even though their customers may have anticipated that the agency file reviews were part of the original agreed upon scope of work. EPA's proposed action takes them off the hook. Now, they can urge their clients to just follow the existing E1527-05. Given the pricing pressures that have driven down the quality of phase 1reports, there seems little doubt that market forces will continue to use the E1527-05 standard given that the regulatory language. As a result, this observer believes that many users will continue to opt to use the cheaper version of E1527. The lawyer who recommends to a client that they use the more expensive version of ASTM when both versions provide the same liability protection may find themselves with an ex-client....unless the client has particularly high aspirational goals towards environmental excellence,the aspirational goals.

Tuesday, January 8, 2013

New Phase I Standard (ASTM 1527-13) American Society for Testing and Materials (ASTM) is revising the current Phase I Environmental Site Assessment (ESA) standard. This new revision although not out yet has been freshly titled ASTM E1527-13 and is expected to be released sometime in 2013. The current Phase I standard (ASTM E1527-05) was designed to meet the EPA’s requirement for All Appropriate Inquiry for environmental due diligence. The new Phase I standard is expected to include language addressing the following areas of concerns. Some likely changes to ASTM E1527-13 standard compared to the current ASTM E1527-05 standard include: • Clarifying Recognized Environmental Conditions (RECs) • Historical Recognized Environmental Condition (HREC) have been clarified for better clarity • Controlled Recognized Environmental Condition (CREC) is expected to be added as new terminology • Update of Findings and Conclusions sections to reflect the REC, HREC and CREC updates • Specific inclusion of Vapor Migration/Intrusion • Specific regulatory file review requirements • Revisions to User Responsibilities • Vapor Intrusion or Migration is expected to be clarified as included in Phase I ESA investigations and ASTM E2600-10 and lastly • Changes to appendices, especially the Table of Contents/Report Format Appendix and Legal Appendix

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