New standard exceeds expectations

Journal Article · Sun Aug 01 04:00:00 EDT 1993 · Hazmat World; (United States)

OSTI ID:6260678

Bennett, M J ^[1]

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1. Environmental Data Resources Inc., Southport, CT (United States)

The new ASTM environmental due diligence standard is delivering far more than expected when it was conceived in 1990. Its use goes well beyond the relatively narrow legal liability protection that was the primary goal in its development. The real estate industry, spearheaded by the lending community, was preoccupied with environmental risk and liability. Lenders throughout the concept's evolution have been at the forefront in defining environmental due diligence. The lender liability rule is intended to protect property owners from CERCLA liability for property they own or companies they manage (for example, as a result of foreclosure). The new site assessment standard increasingly is considered a benchmark for prudent environmental due diligence in the interest of risk management, not legal liability. The focus on risk management, including collateral devaluation and corporate credit risk, are becoming dominant areas of policy focus in the lending industry. Lenders now are revising their policies to incorporate transactions beyond issues of real estate, in which a company's economic viability and ability to service debt could be impacted by an environmental problem unrelated to property transfers.

• OSTI ID: 6260678
• Journal Information: Hazmat World; (United States), Journal Name: Hazmat World; (United States) Vol. 6:8; ISSN HMWOED; ISSN 0898-5685
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
COMPLIANCE
HAZARDOUS MATERIALS
INDUSTRIAL PLANTS
LAWS
LIABILITIES
MANAGEMENT
MATERIALS
POLLUTION LAWS
SITE CHARACTERIZATION
STANDARDS
US SUPERFUND
WASTE MANAGEMENT