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Statement of Need: The need for this action is the congressional mandate in the Small Business Liability Relief and Brownfields Revitalization Act. Section 101(35)(B)(ii) of the law, Congress directs the EPA Administrator to establish (by regulation) standards and practices for the purpose of satisfying the requirement to carry out all appropriate inquiries. Congressional intent or "need" is that purchasers of potentially contaminated property must conduct an inquiry or investigation into the environmental conditions of a property prior to purchasing the property to ensure an understanding of the extent of prior and ongoing environment conditions to establish liability.

Summary of the Legal Basis: In Section 101(35)(B)(ii) of the Small Business Liability Relief and Brownfields Revitalization Act Congress directs the EPA Administrator to establish (by regulation) standards and practices for the purpose of satisfying the requirement to carry out all appropriate inquiries.

Alternatives: EPA may consider alternative standards for specific portions of the regulatory requirements, if viable and suitable alternatives are identified by the FACA committee chartered to negotiate the rulemakings. No such alternatives have been identified to date.

Anticipated Costs and Benefits: Costs associated with the new Federal standard may include incremental costs, associated with using the new Federal standard, that are over and above the costs associated with the privately developed standards currently employed in conducting all appropriate inquiry for the purposes of real estate transaction. This rulemaking will not impose new mandatory requirements on any entities, other than recipients of Federal brownfields grants provided for the purpose of assessing or characterizing brownfields sites. Other than these grant recipients, the standards will be applicable to purchasers of contaminated properties who wish to assert certain limitations on CERCLA liability. The benefits of the regulation may include providing purchasers of contaminated property with clarity regarding the procedures and standards for the conduct of "all appropriate inquiry" required to assert certain limitations on CERCLA liability.

Risks: This regulatory action will not directly address risks to human health or the environment.