ASTM E1527-21 vs. E1527-13: What Changed and Why It Matters

Week 4 of Phase I, Piece by Piece.

If you've ordered a Phase I recently, the report should cite ASTM E1527-21. If someone hands you one that cites E1527-13, the older version, look closely at the date. Since February 13, 2024, a Phase I done to E1527-13 no longer meets EPA's All Appropriate Inquiries rule, which means it can't support the landowner protections covered in last week's post.

The 2021 update didn't reinvent the Phase I. It tightened definitions and made reports more consistent from one consultant to the next. Here are the changes that matter most to buyers and lenders.

A clearer definition of a REC

A recognized environmental condition now covers the likely presence of hazardous substances or petroleum from a release, not only clear evidence of one. That puts more weight on the Environmental Professional's judgment, and the report has to explain that judgment.

Controlled RECs come with their reasoning

When a report calls something a controlled REC (contamination left in place under a regulator's restrictions), it must now explain why and include or cite the regulatory documents behind it. You no longer have to take a one-line conclusion on faith.

The 180-day clock is spelled out

The report must list the dates of the interviews, the lien and records searches, the site visit and the EP's declaration. The 180-day window runs from the earliest of those dates, not the report date. If your closing slips, that's the date to watch.

Historical research is standardized

The standard now names the historical sources a consultant is expected to check, such as aerial photographs, fire insurance maps, city directories and topographic maps. Each must be reviewed or the report must explain why it wasn't. Adjoining properties get a closer historical look too, because the gas station next door matters almost as much as your own lot.

A site plan is required

Every report now includes a map showing where the features, uses and conditions it describes are located.

Significant data gaps are defined

A data gap is "significant" when it affects the EP's ability to identify a REC. The report has to say so plainly, and explain what was done to try to fill it.

Liens and use limitations belong to the User

Searching title records for environmental liens and activity and use limitations is the User's job unless the consultant is hired for it. A database search alone doesn't satisfy it.

What about PFAS?

E1527-21 treats emerging contaminants as outside the standard scope until they become CERCLA hazardous substances. Since 2024, PFOA and PFOS have been listed as CERCLA hazardous substances, so a current Phase I should consider them. Other PFAS compounds can still be added to the scope if you or your lender want them looked at.

What it means for you

Expect reports that are a little longer and more specific, with dates, maps and reasoning you can check. If you're relying on a Phase I, check three things on the cover or in the introduction: that it cites E1527-21, that it names the dates of each component, and that it's still inside 180 days of your closing.

The bottom line

The 2021 standard makes a Phase I easier to read and harder to fudge. Every Phase I we write follows E1527-21. See how our Phase I ESAs work, or request a quote.

Next week: Who the "User" is, and the four things only the User can do.

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BFPP, Innocent Landowner, Contiguous Owner: The Three Protections a Phase I Supports