Assessment Associates, Inc. Environmental Consultants

If you’re a property investor, developer, or commercial real estate professional, you’ve probably heard that the ASTM E1527-05 Standard is being updated this year. Recent market research indicates few professionals are aware of what’s changing. Here’s a recap of what to expect when ASTM E1527-13 comes out later this year:

There are three principal changes in the standard:

1. Clarifications to the definitions of Recognized Environmental Condition (REC), and Historical REC (HREC), along with a new term: Controlled REC (CREC). The proposed draft includes a simplified definition of a REC:

Old Definition:
“the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property, or into the ground, ground water, or surface water of the property. The term includes hazardous substances or petroleum products even under conditions in compliance with laws.”

New Simplified Definition:
“the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: (1) due to any release to the environment; (2) under conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment.”

Revised Historical REC (HREC) Definition
Old Definition:
“an environmental condition which in the past would have been considered a REC, but which may or may not be considered a REC currently.”

New Definition:
“a past release of any hazardous substances or petroleum products that has occurred in connection with the property and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted residential use criteria established by a regulatory authority, without subjecting the property to any required controls (e.g., property use restrictions, AULs, institutional controls, or engineering controls). Before calling the past release an HREC, the EP must determine whether the past release is a REC at the time the Phase I ESA is conducted (e.g., if there has been a change in the regulatory criteria). If the EP considers this past release to be a REC at the time the Phase I ESA is conducted, the condition shall be included in the conclusions section of the report as a REC.”

New CREC Definition:
“a REC resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority (e.g., as evidenced by the issuance of a NFA letter or equivalent, or meeting risk-based criteria established by regulatory authority), with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls (e.g., property use restrictions, AULs, institutional controls, or engineering controls)… a CREC shall be listed in the Findings Section of the Phase I ESA report, and as a REC in the Conclusions Section of the…report.”

2. Vapor Migration has been clarified as being included in the Phase I ESA process

• CERCLA/AAI do not differentiate by form (e.g., solid, liquid, vapor) of the release to the environment (refer to CERCLA definition of “release” and “environment”)
A. Migrate/migration is now defined in E1527 (as it is used in many places in E1527)
B. E2600-10 is a referenced document in E1527
C. Addressed in revised AUL definition
D. Contaminated vapor migration/intrusion now specifically excluded from IAQ (which is a non-scope consideration)

3. Regulatory File Review Requirement Revisions:

• An agency file review is a common industry term used to describe the search for and review of files maintained by local, state, or federal authorities.
• Revisions address two specific issues:
1. What factors should the environmental professional consider in exercising professional judgment as to when an agency file review should be conducted?
2. When are agency file reviews considered reasonably ascertainable?

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Possible Environmental Problems

You may be reading this because you’ve been told by a lender that you need to order a Phase I Environmental Site Assessment (Phase I ESA). You’re in the right place. Our staff have conducted hundreds and hundreds of these assessments and we really love to investigate the history of a property. My name is Michael O’Connor and I’ve spent my career as a registered geologist helping investors, banks, governments, and industrial and commercial property owners avoid the financial nightmare of hidden environmental liabilities. These can range is scope from a forgotten underground gasoline tank, to a poorly-managed nearby drycleaners, to a hazardous waste dump in the basement next door, to lead paint on a windowsill or asbestos lurking behind a wall. Any of these items, if found after you buy the property, will be yours and yours alone to clean up or deal with. By engaging an environmental assessment expert to find those problems before your sign a purchase agreement, you’ll be best prepared to negotiate the terms for cleanup. If you’re the seller, we can help you evaluate and clean up your property in a timely, cost-effective manner. Buying a property without doing a Phase I ESA is like buying used car without popping the hood. Don’t buy a lemon, call the friendly folks at Assessment Associates Environmental Consulting today at 503.233.8565 or email us at info@aaiconsulting.com. Best of luck with your deal!