Anyone looking to acquire, finance, or re-finance property next year should know that the federal EPA recently approved a new Phase I Environmental Site Assessment (ESA) Standard (ASTM-E1527-21) to satisfy "All Appropriate Inquiry" and obtain certain liability defenses under federal law. Among other changes, the new standard revises the definition of "recognized environmental condition" and requires consultants to review, at a minimum, specific historical sources for the subject property and adjacent properties.
However, the most significant aspect of the new ASTM-E1527-21 Standard is what it did not change. A review of potential emerging contaminants, such as per- and polyfluoroalkyl substances (PFAS), remains outside of the scope of a Phase I ESA review. This could soon change, however, if, as anticipated, EPA identifies these emerging contaminants as "hazardous substances" under CERCLA.
