ABSTRACT
Federal bill H.R. 2787, now in the hands of the House Energy and Commerce Committee, is a proposal to amend the so-called “innocent purchaser” provisions of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund). If enacted, the bill would establish a rebuttable presumption that by having a “Phase I Environmental Audit” performed by “environmental professionals” prior to or at the time of acquisition, a property owner will have satisfied his or her obligation to conduct “all appropriate inquiry” into the past ownership and uses of the property before claiming an “innocent purchaser” defense against CERCLA liability. H.R. 2787 would also establish minimum federal standards for conducting Phase I Environmental Audits and define the term “environmental professional.” This paper will consider how well H.R. 2787’s Phase I Environmental Audit is likely to function as a national baseline for preacquisition investigations, and considers its implications for consultants and prospective property purchasers entering into agreements to conduct such investigations.
