May 2022

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

New Standard for Phase I Environmental Site Assessments

By Patricia Paruch

On March 14, 2022, the U.S. Environmental Protection Agency (EPA) published a proposed rule which would amend the 2013 Standards and Practices for All Appropriate Inquiries (AAI)(40 CFR part 312). The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) requires prospective purchasers or operators of potentially contaminated property and others to conduct all appropriate inquiry into the environmental condition of the property to receive the liability protections in the statute. The purpose of the inquiry is to provide a snapshot of the environmental condition of the property and to identify any recognized environmental conditions (RECs) that may exist. Once any RECs are identified and documented, the entity can usually assume ownership or occupancy without incurring liability for the existing contamination.

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The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.