ASTM (American Society for Testing and Materials) due diligence standards have been updated to address environmental conditions not widely recognized in 2013 but EPA's "all appropriate inquiry" regulations have yet to conform.

ASTM International (ASTM) issued its seventh version of Environmental Site Assessment (ESA) standards, E1527-21, on Nov. 1, 2021. These ASTM standards provide the leading source of guidance on minimum standards for Phase I ESAs for commercial and industrial property acquisitions. While ASTM E1527-21 improves upon the predecessor E1527-13, the US Environmental Protection Agency’s (EPA) "all appropriate inquiry" regulations (40 CFR § 312.11(b)) currently codify E1527-13 as setting the appropriate due diligence standard. As a matter of course, EPA is expected to amend its regulations to replace the reference to E1527-13 with a reference to E1527-21. However, until EPA amends its rules, buyers should recognize that the improved commercial standard for due diligence is based on E1527-21, but the regulatory safe harbor for complying with "all appropriate inquiry" standards for purposes of meeting EPA requirements remains E1527-13. Continue reading >