On December 15, 2022, just in time for the New Year, as part of compliance with the US Environmental Protection Agency’s All Appropriate Inquiries (AAI) component for potential liability protections under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) the United States Environmental Protection Agency issued a final notice approving the ASTM E1527-21 as the updated standard practice for all the Phase-I Environmental Site Assessments.
ASTM 1527-21 retains much of the substance and form of the previous standard ASTM 1527-13 which has been in use by environmental for the past 8 years but clarifies and expands on certain details. The most significant modifications in the new Standard include the following:
- Updated definitions of Recognized Environmental Condition (REC).
- Use of the term “Subject Property” consistently throughout the report for the target property.
- Shelf Life of the Phase-I ESA report
- Review of Historical Sources for the Subject Property and the adjoining properties
- Requirements on Additional Standard Historical Records
- Updated definition of Historical REC (HREC)
- Difference between REC, HREC, and CREC.
- Inclusion of interviews in the ASTM Standard Historical Sources of Information
- Discussion on Emergent Contaminants
- Discussion on Data gaps
- Inclusion of Maps/Photographs
Although, many of these findings are quite distinct, we agree that the updated standard clarifies existing language, strengthens the deliverables and reflects good commercial and customary practices, and thereby will improve the quality of Phase-I ESAs across the board.
Expanded Considerations Under ASTM E1527-21: What Professionals, Purchasers, and Lenders Need to Know
The ASTM E1527-21 standard brings consistency, improved clarification, and updated requirements to the Phase I Environmental Site Assessment process, affecting all parties involved in real estate transactions—owners, purchasers, lenders, and consultants alike. The enhanced reporting framework ensures that users and operators gain access to accurate environmental data that supports informed acquisition decisions.
One of the most impactful revisions is the emphasis on robust searches of historical resources and more comprehensive documentation of hazardous substances and known releases. The standard now requires professionals to incorporate interviews, site observations, and government records as part of their investigative scope.
These updates also give qualified environmental professionals authority to use their judgment and experience in areas where data gaps exist—allowing space for professional opinions while maintaining adherence to regulatory standards. This balance improves the overall quality and usability of reports.
For example, a Phase I ESA must now clearly identify whether contaminants are emerging concerns and document such findings in one place. This not only satisfies CERCLA’s All Appropriate Inquiry (AAI) requirements but also helps lenders and other parties evaluate environmental issues before finalizing a transaction.
By implementing these changes, the ASTM E1527-21 standard enhances the due diligence process by aligning legal rules, technical components, and practical considerations. It streamlines environmental risk management, reduces uncertainty, and supports a smoother real estate transaction experience for all involved.
Frequently Asked Questions About ASTM E1527-21
Why was the Phase I ESA standard updated to ASTM E1527-21?
The update was made to address changes in environmental regulations, ensure consistency, and provide more precise clarification of assessment practices. It also enhances protection for purchasers and lenders under CERCLA.
What’s the benefit of including interviews and additional historical data?
These components improve the depth of the assessment by adding context and real-world evidence. Interviews, in particular, provide insight into past site uses that may not be documented in public records.
How does this affect due diligence for real estate purchases?
The updated standard ensures better environmental research and more thorough reports, reducing the likelihood of post-purchase issues and increasing the confidence of owners, buyers, and operators in environmental satisfaction and legal compliance.
How are emerging contaminants handled under the new standard?
ASTM E1527-21 acknowledges the growing list of emerging hazardous substances and encourages consultants to document them when applicable, even if they are not yet regulated—improving proactive risk evaluation.
Can professionals still use judgment in interpreting the findings?
Yes, the new standard allows professional discretion while requiring that all assessments adhere to core rules and include a well-reasoned explanation, based on logic and technical knowledge.
