ASTM E1527-21 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process

ASTM E1527-21 is the standard practice for conducting Phase I Environmental Site Assessments (ESAs). It provides guidelines for identifying potential environmental liabilities associated with commercial real estate and other properties.

ASTM International (formerly known as the American Society for Testing and Materials) publishes ASTM E1527-21.

ASTM E1527-21 was released on November 1, 2021.

Key changes include:

• Clarified definitions of Recognized Environmental Conditions (RECs)
• Enhanced historical research requirements
• Updated guidance on emerging contaminants
• Improved discussion on significant data gaps

Environmental professionals, property owners, lenders, and other stakeholders involved in commercial real estate transactions should use this standard.

The primary purpose is to identify Recognized Environmental Conditions (RECs) and assess potential environmental liabilities associated with a property.

Yes, when properly conducted, an ESA following ASTM E1527-21 meets the requirements for "All Appropriate Inquiries" under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

A REC is the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property due to a release, past release, or material threat of a release.

A CREC is a REC resulting from a past release that has been addressed but is subject to ongoing control or use limitations.

An HREC is a past environmental condition that has been remediated to unrestricted use standards and requires no further action.

Emerging contaminants are substances that are not yet regulated but may pose environmental or health risks, such as per- and polyfluoroalkyl substances (PFAS).

The main components include:

• Records review
• Site reconnaissance
• Interviews
• Report preparation

Historical sources may include aerial photographs, fire insurance maps, local street directories, topographic maps, and previous environmental reports.

The historical review should go back to the property's first developed use or 1940, whichever is earlier.

An environmental professional, as defined in the standard, should conduct the site reconnaissance.

The report should include an executive summary, introduction, site description, records review, site reconnaissance findings, interviews, findings, opinions, conclusions, and supporting documentation.

Significant data gaps should be identified in the report, and their impact on the ability to identify RECs should be discussed.

A Phase I ESA report is considered valid for 180 days from the date of the earliest component (e.g., interviews, records review).

An environmental professional must have specific education, training, and experience as defined in the standard, including relevant degrees and years of experience.

Yes, but the environmental professional must supervise or perform the assessment and sign the report.

Non-scope considerations are additional environmental issues that may be considered in a Phase I ESA but are not required, such as asbestos, lead-based paint, and wetlands.

ASTM E1527-21 addresses emerging contaminants as non-scope considerations but notes that they may be considered RECs if defined as hazardous substances under CERCLA.

Users have responsibilities including providing information about the property, such as environmental liens, specialized knowledge, and the reason for lower purchase price (if applicable).

No, a Phase I ESA is limited to visual observations and readily available information. It does not include sampling or testing of soil, water, or building materials.

While not legally required for all transactions, many lenders and buyers require a Phase I ESA as part of their due diligence process.