Phase I ESAs and Environmental Due Diligence: RECs, PFAS, Post-Closing Obligations, and CERCLA Defense Strategy

This CLE course will provide an in-depth look at ASTM E1527-21, the current Phase I ESA standard recognized by the EPA as satisfying all appropriate inquiries (AAI) requirements. The panel will examine the standard's application in current practice, the identification of recognized environmental conditions (RECs), treatment of data gaps, and the role of the Phase I ESA in preserving CERCLA landowner defenses.

Federal and state environmental laws can impose significant liability on parties acquiring or operating commercial real estate unless they qualify for available defenses or otherwise understand and manage environmental risk appropriately. AAI, commonly conducted through a Phase I Environmental Site Assessment, remains a critical step for parties seeking CERCLA liability protections. Counsel must understand what the standard is designed to do, what it does not do, and how findings in the report may affect decisions and post-closing obligations.

The current standard continues to guide environmental due diligence through revised definitions, greater rigor around historical review and agency records, and clearer treatment of RECs, controlled RECs, and historical RECs. Environmental diligence has grown increasingly complex as parties confront emerging contaminants, vapor concerns, and when additional investigation may be prudent.

Listen as our expert panel examines current practice under ASTM E1527-21 and offers guidance for using Phase I ESAs effectively in environmental due diligence. The panel will discuss practical REC examples, PFAS and other emerging-contaminant issues, continuing obligations necessary to help preserve CERCLA defenses after closing, and best practices for guiding clients through Phase I findings and related follow-up issues.