ENVIRONMENTAL SITE ASSESSMENTS

 A new federal standard for conducting property transfer due diligence has been implemented.  The new rule -(proposed by the EPA and passed by Congress) will affect all persons and businesses purchasing commercial and industrial property who wish to avoid CERCLA’s liability responsibility for releases of hazardous substances.  If you are involved in mergers and acquisitions, development, commercial lending; or if you buy, sell or lease property, you need to know how this new rule affects you.  Just as importantly, you need to know when a lesser effort ‘due diligence’ may be appropriate.

The new rule is termed the “All Appropriate Inquiry” Rule and supercedes the existing ASTM Phase I Environmental Site Assessment (E-1527) procedures currently used as the standard for site assessments. 

There are new standards and practices for:

● Current and past property uses and occupancies.

● Current and past uses of hazardous substances.

● Waste management and disposal activities that could have caused releases or threatened releases of hazardous substances.

● Current and past corrective actions and response activities undertaken to address past and ongoing releases of hazardous substances.

● Engineering controls.

● Institutional controls; and,

● Properties adjoining or located nearby the subject property that have environmental conditions that could have resulted in conditions indicative of releases or threatened releases of hazardous substances to the subject property.