{"id":1160,"date":"2022-07-19T15:49:34","date_gmt":"2022-07-19T15:49:34","guid":{"rendered":"https:\/\/www.trccompanies.com\/insights\/environmental-regulatory-compliance-items-to-consider-as-part-of-your-transactional-due-diligence\/"},"modified":"2025-02-18T15:49:00","modified_gmt":"2025-02-18T15:49:00","slug":"environmental-regulatory-compliance-items-to-consider-as-part-of-your-transactional-due-diligence","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/environmental-regulatory-compliance-items-to-consider-as-part-of-your-transactional-due-diligence\/","title":{"rendered":"Regulatory Compliance Items to Consider as Part of Transactional Due Diligence"},"content":{"rendered":"\n\n
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While a Phase I Environmental Site Assessment (ESA) is a common method for identifying environmental liabilities during transactional due diligence, the ASTM International standard for Phase I ESAs (E1527-13, with proposed E1527-21 awaiting adoption) omits regulatory compliance<\/a> from its scope. For properties containing operations that may be applicable to environmental compliance regulations, performing a limited environmental regulatory review can identify potential deficiencies with the environmental management of the facility.<\/p>\n

A limited environmental compliance review typically evaluates the presence of material findings that may exist in a facility\u2019s management of its environmental compliance requirements. Material findings are defined as a condition of non-compliance that could necessitate expenditures, not including attorney fees or regulatory agency penalties, in excess of a specified dollar amount or materiality threshold. The materiality threshold is based on the client\u2019s risk tolerance and is often in the range of $50,000. However, this amount is arbitrary and can be revised as appropriate. Non-material deficiencies, those identified below the materiality threshold, would still require action but are within the client\u2019s risk tolerance.<\/p>\n <\/div>\n

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