EPA Establishing Investigation Standard for Environmental Contamination

U.S. EPA is planning to propose an important regulation to define how properties must be investigated prior to purchase — called “all appropriate inquiry” standards.  This follows just two years after President Bush signed the Small Business Liability Relief Act and Brownfields Revitalization Act (H.R. 2896), in which Congress created a new federal liability defense (bona fide prospective purchasers) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for builders and developers (or other parties) who purchase potentially contaminated properties with the goal of redevelopment.  In order for any builder or developer to qualify for the liability protections, a party will have to be able to demonstrate (to a court) that it meets all requirements under the law, including performing an environmental site assessment (“all appropriate inquiry”) prior to purchasing the property. 

The EPA proposed regulation was developed as a negotiated rulemaking in which NAHB participated.  A draft copy of EPA’s proposal will be posted on NAHB members-only website under the Environmental Issues Committee along with additional background information.  If you have any questions please contact NAHB staff member Michael Mittelholzer at 800-368-5242 x8660. [ return to top ]