Phase I Environmental Site Assessments All Appropriate Inquiry

Although the All Appropriate Inquiry (AAI) standard for Phase I Environmental Site Assessments has been around for two years now, many reports now being prepared in accordance with the AAI standard fall short of the current requirements.  Below is a list of provisions that became effective under the AAI standard.  If you are preparing or reviewing a report, the following issues must be identified in the report.

• Data Gaps – AAI requires more extensive documentation of data gaps – The Environmental Professional must identify data gaps, including the sources of information that were consulted to address the data gaps, for all required provision of AAI.  The Environmental Professional is required to comment on the significance of the data gaps with regard of the ability of Environmental Professional to identify conditions indicative of releases or threatened releases of hazardous substances.

• Research back first identified use or 1940, whichever is earlier.  Identify uses in 5 year intervals.  To establish the use, must use at least one of the following.

Aerial Photographs

Fire Insurance Maps

Property Tax Files

Recorded Land Title Records

USGS Topographic Maps

Local Street Directories

Building Department Records

Zoning/Land Use Records

If the fire insurance maps show the same parking garage between 1940 and 1960, the period in between does not need to be researched.

• The Phase I report is to be conducted/supervised by an “Environmental Professional”.  Although this is similar to the previous E 1527-00.  The AAI defines requirements for the Environmental Professional.  Requirements regarding training, experience and education are noted in the standard.

Environmental Professional statement is required in report, “[I, We] declare that, to the best of [my, our] professional knowledge and belief, [I, we] meet the definition of Environmental Professional as defined in §312.10 of 40 CFR Part 312…..”

 

• The shelf life of a Phase I is stated as one year.  All appropriate inquiries must be completed within one year, prior to acquisition of the property, HOWEVER, interviews, liens searches, records review and visual inspection must take place within 180 days. (Not 180 days from the date of the final report!) 

Relevant portions of the report (interviews, etc.) can be updated within the one year period in order to avoid reproduction of the entire report.

·        Interview with the owner and occupants is mandatory.

·        CERCLA landowner liability defense.  Standard E 1527-00 included petroleum products for liability protection.  New standard excludes petroleum products.

·        Either the purchaser or the Environmental Professional must conduct the search for Recorded Environmental Cleanup Liens.  If the search is performed by the prospective property owner and the results are not provided to the EP.  The lack of information to be identified as a data gap.

• Either the purchaser or the Environmental Professional must compare the purchase price of the property to the fair market value of the property, taking into consideration if the difference between the purchase price and the fair market value is due to the presence of releases or threatened releases of hazardous substances.  It is possible that the purchase price information may not be disclosed for business reasons.  This would be addressed as a data gap in the report.

• The report shall include one of the following statements:

“We have performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Practice E 1527 of [insert address or legal description], the property.  Any exceptions to, or deletions from, this practice are described in Section [  ] of this report.  This assessment has revealed no evidence of recognized environmental conditions in connection with the property,” or

“We have performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Practice E 1527 of [insert address or legal description], the property.  Any exceptions to, or deletions from, this practice are described in Section [  ] of this report.  This assessment has revealed no evidence of recognized environmental conditions in connection with the property except for the following:  (list).”

This article was authored by William Chambers, Acacia Environmental Group LLC. For more information on the author see here.