Change Is In the Air – EPA’s Final ´All Appropriate Inquiries´ Rule

Originally published 4th Quarter, 2005

Change is in the air with regard to the way in which prospective purchasers, lenders and others will conduct environmental due diligence in the future. These changes stem from Congress’ enactment of the Small Business Liability Relief and Brownfields Revitalization Act, 115 Stat. 2356 (the Brownfields Amendments of 2002 or Amendments). As part of these Amendments, Congress required the Environmental Protection Agency (EPA) to develop standards for parties to conduct "all appropriate inquiries" prior to taking title to real property in order to determine if there are "conditions indicative of releases or threatened releases of hazardous substances" or petroleum products on the property. EPA convened a negotiated rulemaking committee (reg-neg committee) in 2003 to develop the proposed rule. The proposed AAI rule was published in August of 2004 (69 Fed. Reg. 52,542) (August 26, 2004),