A Phase I Environmental Site Assessment is only useful if itaddresses all current and relevant issues impacting risk associatedwith real estate transactions. That's why the American Society forTesting Materials (ASTM) is updating the industry's StandardPractice for Phase I Environmental Site Assessments toreflect recent changes in the due diligence world. The 2013 versionof the Phase I ESA standard, ASTM E1527-13, is undergoing somefinal tweaks and, pending approval by the US EnvironmentalProtection Agency (EPA), is expected to be passed this summer.

While ASTM E1527-13 is predicted to differ only on afew key points from its 2005 predecessor (which at the time wasrevised mainly to meet the EPA's new requirements for AllAppropriate Inquiry [AAI] for environmental due diligence),these proposed changes could have an important impact on the wayPhase I ESAs are conducted and written. There is some concern that,under certain circumstances, the proposed changes may increasecosts for the user and add to report delivery times – a fear that'snot unsubstantiated.

So what are the key new procedures and terminology to look outfor?