There is general awareness of the need to perform environmental due diligence on virtually any transaction that involves commercial/industrial property. However, even with such general awareness missteps or lack of attention to detail during the process can risk exposing a purchaser or new tenant to significant liability. Having been involved in counseling on environmental due
All Appropriate Inquiries
U.S. EPA Endorses New ASTM Phase I Standard
On December 15, 2022, the U.S. Environmental Protection Agency (EPA) issued a final rule that endorses ASTM E1527-21 which provides a uniform standard for performing Phase I Environmental Assessments. The new rule will have an effective date of February 13, 2023. The EPA endorsement of the new ASTM Phase I standard means that the procedures…
New Ohio Law Reduces Cost and Time for Environmental Cleanups
On June 16, 2020, Ohio Governor Mike DeWine signed House Bill 168, which provides greater flexibility to manage environmental issues on commercial/industrial property. The bill will take effect on September 14, 2020 (90 days after the governor’s signature).
What issue does H.B. 168 address?
The cost to clean up historical contamination at commercial/industrial properties has…
Indiana Court Grants Bona Fide Purchaser Defense Without a Phase I
Despite its limitations, most commercial and industrial property transactions rely on the Bona Fide Purchaser Defense (BFPD) to CERCLA as the principal means of protecting new owners from environmental liability. While EPA has adopted the “All Appropriate Inquiry” (AAI Rule) to provide some clarity to the steps necessary to qualify for the defense, there is…
New Ohio Bill Could Jumpstart Brownfield Redevelopment
Since the sunset of the very successful Clean Ohio Brownfield Revitalization Program, brownfield redevelopment has slowed in Ohio. At a time when the economy is finally doing well, and real estate development is in full recovery mode, brownfields are still being passed over for less costly redevelopment options.
This past week, Representative Arndt introduced House…
BUILD Act- Federal Brownfield Legislation Includes Major New Liability Protections
Congress does not often pass environmental legislation, so the passage of the Brownfields Utilization, Investment, and Local Development Act (BUILD Act) is noteworthy. While the amount of federal funds available will still be far less than needed to move the needle, there are important changes to the law that will help facilitate brownfield…
Rethinking Brownfield Redevelopment in Ohio – Part 1 of 4
Two weeks ago I participated in the Ohio Brownfields Conference in Columbus, Ohio. 2016 marks the twentieth (20th) anniversary of Ohio’s Voluntary Action Program (VAP) which is implemented by Ohio EPA and is the primary regulatory program for cleanup of brownfields.
To mark the anniversary, Ohio EPA encouraged presenters to reflect on the success…
Local Governments, Land Banks and Brownfield Properties
One of the issues that has prevented local governments from being more aggressive in addressing brownfields has been liability concerns associated with existing environmental contamination. Prior to 2009, some local governments learned the hard way that placing their name in the chain of title as an "owner" exposed the local government to liability under CERCLA…
EPA No Longer Recognizes Old ASTM Standard for Phase Is
U.S. EPA has published in the Federal Register its action that removes the old Phase I standard (1527-05) from the "All Appropriate Inquiries" Rule (AAI). Until this action, AAI recognized both the old standard and the new standard- ASTM 1527-13.
The major differences between the old and new ASTM Phase I standard include:
- Key
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Only About 1/2 of Phase I Assessments Analyze for Vapor Migration Risks
Phase I Environmental Assessments (Phase I ESA) are the first step in the environmental due diligence process. A Phase I ESA is a review of available information regarding a property to determine the possibility contamination may be present. The assessment includes a review of environmental databases, file reviews, interviews with regulators/property owners and a site…