ASTM E1528-22
(Practice)Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process
Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process
SIGNIFICANCE AND USE
4.1 Uses—This practice sets forth a procedure for conducting limited environmental due diligence. This practice is intended for use on a voluntary basis by parties who wish to assess the environmental condition of a subject property where a Phase I Environmental Site Assessment is, initially, deemed to be unnecessary by the user and the parties do not seek CERCLA LLPs. This practice is intended primarily as a commercially prudent or reasonable approach to conducting an inquiry designed to identify potential environmental concerns in connection with a subject property.
4.2 Clarifications on Use:
4.2.1 Use Not Intended for CERCLA Liability Protection—This document is not intended to permit a user to satisfy CERCLA LLPs, that is, the practices that constitute all appropriate inquiries into the previous ownership and uses of the subject property consistent with “generally accepted good commercial and customary standards and practices” as defined in 42 U.S.C. §9601(35)(B).
4.2.2 Transaction Screen Does Not Identify Recognized Environmental Conditions—This practice does not define a scope of assessment sufficient to identify recognized environmental conditions as defined in Practice E1527 and Practice E2247.
4.2.3 Residential Tenants/Purchasers and Others—Although this practice is not intended for residential purposes, it may be used at the user’s discretion for residential tenants of multifamily residential buildings, tenants of single-family homes or other residential real estate, or purchasers of dwellings for residential use to conduct a transaction screen in connection with these transactions.
4.2.4 Site-Specific—This practice is site-specific in that it relates to assessment of environmental conditions at a subject property. Consequently, this practice does not address many additional issues raised in transactions such as purchases of business entities, or interests therein, or of their assets, that may well involve environmental liabilities pertaini...
SCOPE
1.1 Purpose—The purpose of this practice is to define a good practice in the United States of America for conducting a transaction screen2 for a subject property where the user wishes to conduct limited environmental due diligence (that is, less than a Phase I Environmental Site Assessment). If the driving force behind the environmental due diligence is a desire to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Landowner Liability Protections (LLPs), this practice should not be applied. Instead, the ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property may be used.
1.1.1 This practice will not satisfy the requirement to conduct all appropriate inquiries into the previous ownership and uses of the subject property consistent with “generally accepted good commercial and customary standards and practices” as defined in 42 U.S.C. §9601(35)(B) to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Landowner Liability Protections (LLPs). Users who desire to conduct environmental due diligence to qualify for one of the CERCLA LLPs should conduct assessment activities in conformity with “Standards and Practices for All Appropriate Inquiries,” 40 C.F.R. Part 312; ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.
1.2 An evaluation of business environmental risk associated with a parcel of commercial real estate may necessitate investigation beyond that identified in this practice. See Sections 1.4 and 9.
1.2...
General Information
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Standards Content (Sample)
This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E1528 − 22
Standard Practice for
Limited Environmental Due Diligence: Transaction Screen
1
Process
This standard is issued under the fixed designation E1528; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope 1.2 An evaluation of business environmental risk associated
with a parcel of commercial real estate may necessitate
1.1 Purpose—The purpose of this practice is to define a
investigation beyond that identified in this practice. See Sec-
good practice in the United States ofAmerica for conducting a
tions 1.4 and 9.
2
transaction screen for a subject property where the user
1.2.1 Potential Environmental Concerns—The goal of con-
wishes to conduct limited environmental due diligence (that is,
ducting a transaction screen is to identify potential environ-
less than a Phase I Environmental Site Assessment). If the
mental concerns as defined in 3.2.36.
driving force behind the environmental due diligence is a
1.2.2 Other Federal, State, and Local Environmental
desire to qualify for one of the Comprehensive Environmental
Laws—Thispracticedoesnotaddressrequirementsofanystate
Response, Compensation, and Liability Act (CERCLA) Land-
or local laws or of any federal laws. Users are cautioned that
owner Liability Protections (LLPs), this practice should not be
federal, state, and local laws may impose environmental
applied. Instead, the ASTM E1527: Standard Practice for
assessment obligations that are beyond the scope of this
Environmental Site Assessments: Phase I Environmental Site
practice. In some cases, government agencies permit the use of
Assessment Process or ASTM E2247: Standard Practice for
this practice in connection with their programs but sometimes
Environmental Site Assessments: Phase I Environmental Site
impose additional requirements going beyond this practice.
Assessment Process for Forestland or Rural Property may be
Users should also be aware that there are likely to be other
used.
legal obligations with regard to chemicals of concern discov-
1.1.1 This practice will not satisfy the requirement to
eredon propertythatarenotaddressedinthispracticeandmay
conduct all appropriate inquiries into the previous ownership
pose risks of civil or criminal sanctions or both for non-
and uses of the subject property consistent with “generally
compliance.
accepted good commercial and customary standards and prac-
1.3 Objective—The objective guiding the development of
tices” as defined in 42 U.S.C. §9601(35)(B) to qualify for one
this practice is to facilitate standardized transaction screens.
of the Comprehensive Environmental Response,
1.3.1 Note of Caution—The user should be cautious in
Compensation, and Liability Act (CERCLA) Landowner Li-
applying this practice to properties with known current or
ability Protections (LLPs). Users who desire to conduct
historical handling of chemicals of concern. See Note 1.
environmental due diligence to qualify for one of the CERCLA
1.3.2 Potentially Appropriate Uses—This practice may be
LLPs should conduct assessment activities in conformity with
especially appropriate for properties in rural, non-industrial, or
“Standards and Practices for All Appropriate Inquiries,” 40
undeveloped locations or, subject to the criteria of a lending
C.F.R. Part 312;ASTM E1527: Standard Practice for Environ-
institution,inconnectionwithafinancingof propertiesthatare
mental Site Assessments: Phase I Environmental Site Assess-
expected to have few environmental concerns.
ment Process orASTM E2247: Standard Practice for Environ-
mental Site Assessments: Phase I Environmental Site NOTE 1—In general, a transaction screen assessment is not suitable for
purposes of evaluating environmental conditions of a property having
Assessment Process for Forestland or Rural Property.
activities that use, handle, store, or dispose of large volumes of chemicals,
either currently or in the past. Such activities include, but are not limited
to, manufacturing, vehicle fueling, dry cleaning, metal plating and
1 finishing, circuit board manufacturing, junkyard, and landfill activities
This practice is under the jurisdiction of ASTM Committee E50 on Environ-
which would prompt the need for further inquiry. Refuting the presump-
mental Assessment, Risk Management and Corrective Action and is the direct
tion of a potential environmental concern on such properties normally
responsibility of Subcommittee E50.02 on Real Estate Assessment and Mana
...
This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
´1
Designation: E1528 − 14 E1528 − 22
Standard Practice for
Limited Environmental Due Diligence: Transaction Screen
1
Process
This standard is issued under the fixed designation E1528; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1
ε NOTE—Question 21 of the Transaction Screen Questionnaire (see Section 6) and footnote 6 were editorially corrected
in January 2017.
1. Scope
1.1 Purpose—The purpose of this practice is to define a good practice in the United States of America for conducting a
2
transaction screen for a parcel of commercial real estatesubject property where the user wishes to conduct limited environmental
due diligence (that is, less than a Phase I Environmental Site Assessment). If the driving force behind the environmental due
diligence is a desire to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Landowner Liability Protections (LLPs), this practice should not be applied. Instead, the ASTM E1527: Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment Process or ASTM E2247: Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property may be used.
1.1.1 This practice will not satisfy the requirement to conduct all appropriate inquiries into the previous ownership and uses
of the subject property consistent with “generally accepted good commercial and customary standards and practices” as defined
in 42 U.S.C. §9601(35)(B) to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA) Landowner Liability Protections (LLPs). Users who desire to conduct environmental due diligence to qualify for one
of the CERCLALLPs should conduct assessment activities in conformity with “Standards and Practices for All Appropriate
Inquiries,” 40 C.F.R. Part 312,312; ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental
Site Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site
Assessment Process for Forestland or Rural Property.
1.2 An evaluation of business environmental risk associated with a parcel of commercial real estate may necessitate
investigation beyond that identified in this practice. See Sections 1.4 and 119.
1.2.1 Potential Environmental Concerns—The goal of conducting a transaction screen is to identify potential environmental
concerns, concerns as defined in 3.2.353.2.36.
1.2.2 Other Federal, State, and Local Environmental Laws—This practice does not address requirements of any state or local
laws or of any federal laws. Users are cautioned that federal, state, and local laws may impose environmental assessment
obligations that are beyond the scope of this practice. In some cases, government agencies permit the use of this practice in
connection with their programs but sometimes impose additional requirements going beyond this practice. Users should also be
aware that there are likely to be other legal obligations with regard to hazardous substanceschemicals of concern or petroleum
productsdiscovered on property that are not addressed in this practice and may pose risks of civil and/oror criminal sanctions or
both for non-compliance.
1.3 Objective—The objective guiding the development of this practice is to facilitate standardized transaction screens.
1.3.1 Note of Caution—The user should be cautious in applying this practice to properties with known current or
historichistorical handling of hazardous substanceschemicals of orconcern. petroleum productsSee Note 1.
1.3.2 Potentially Appropriate Uses—This practice may be especially appropriate for properties in rural, non-industrial, or
undeveloped locations or, subject to the criteria of a lending institution, in connection with a financing of properties that are
expected to have few environmental concerns.
NOTE 1—In general, a transaction screen assessment is not suitable for purposes of evaluating environmental conditions of a property having activities
1
This practice is under the jurisdiction of ASTM Committee E50 on Environmental Assessment, Risk Management and Corrective Action and is the direct responsibility
of Subcommittee E50.02 on Real Estate Assessment and Mana
...
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