EBA Journal – Winter 2026 Edition
Common Phase I Issues: A Brief Reflection By Dianne R. Phillips, Holland & Knight LLP
The most common environmental due diligence report requested by lenders/investors is a Phase I Environmental Site Assessment report prepared pursuant to American Society for Testing and Materials (ASTM) (now known as ASTM International) Standard Practice for Environmental Assessments: Phase I Environmental Site Assessment Process, E1527-21. A properly prepared and timely Phase I can be used to satisfy EPA’s “All Appropriate Inquiry” rule, 40 C.F.R. Part 312, positioning a property owner (borrower or SPE) to claim eligibility under the Landowner Liability Protections enacted as part of the 2002 Small Business Liability Relief and Brownfields Revitalization Act, the "Brownfields Amendments" to Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). For lenders, it is considered a business requirement of underwriting.
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