Hazardous substances stored and used at an operating business

A business operating on the subject property uses and stores chemicals or petroleum products, and nothing on record or in sight shows a release. The standard asks for these materials to be described and makes no class of their presence. Whether there is a recognized environmental condition (REC) depends on four things: what the business keeps, how it is stored and contained, whether there is evidence of a release now or before, and how long and in what period the operations have run.

What the answer turns on

Each part of the REC definition joins presence or likely presence with a release, a likely release or a material threat of a future release (E1527-21, 3.2.73). The standard's appendixes are nonmandatory.

What the business keeps. Only hazardous substances and petroleum products count; a substance that is neither is a non-scope consideration, which the user may still add to the scope of work (E1527-21, 1.1.4, footnote 3, 3.2.36, 3.2.61, 13.1.5.15). The site visit item for current uses takes in any use, storage, treatment, disposal or generation of those substances (E1527-21, 9.4.1). For materials tied to identified uses, the report gives roughly how many containers there are and describes in general their contents, capacity, types and storage conditions; no detailed inventory is required (E1527-21, 9.4.11). Tanks are described as well (E1527-21, 9.4.12): see aboveground storage tank on the subject property.
How it is stored and contained. A material threat is an obvious threat, likely to lead to a release, that the environmental professional judges would likely harm public health or the environment (E1527-21, 3.2.52, 3.2.55). In the appendix's first illustration, a labeled drum of a hazardous substance in good condition, with no leak and no stains or corrosion around it, is a finding with no REC attached; in its second, the assessor judged a damaged diesel tank on gravel, with no roof, bollards or containment structure, a REC by material threat. The appendix says its examples are not to be applied universally (E1527-21, X4.3). Its note gives precariously stacked drums of hazardous substances and bulging petroleum tanks as possible examples, only if the professional deems the condition serious enough to cause or contribute to a release (E1527-21, X4.1). Establish the condition of containers and tanks, and whether a drain or bare ground lies below.
Evidence of a release, now or before. Odors, stains or corrosion on floors, drains and sumps, stained soil or pavement and stressed vegetation are site visit features (E1527-21, 9.4.13, 9.4.20, 9.4.21, 9.4.23, 9.4.24). The legal background appendix reports the federal agency's reading that a release not held wholly inside a building or structure is one into the environment (E1527-21, X1.1.1.2). A release that is found is weighed against the de minimis definition (E1527-21, 3.2.20): see staining on pavement or soil.
How long, and in what period, the operations have run. The professional considers what releases past uses could have led to (E1527-21, 8.3.1). For a likely release, the appendix on the REC definition points to the operations involving those substances, how long they ran and when. Its note names petroleum storage or dispensing, dry cleaning and manufacturing run for a significant time before regulatory controls among its possible examples, if the professional believes a release from them has likely occurred (E1527-21, X4.1). Establish when this business, and any earlier occupant with like uses, began.

The records that bear on it

Site visit. The interior is observed, including maintenance and repair areas, boiler rooms, a representative sample of occupant spaces, and the places where the business stores, uses, treats, discharges or disposes of these materials, or may once have done so (E1527-21, 9.2.3).
Interviews. With no more than five current occupants, each is sought for an interview; with more, the major occupants and those whose operations are likely to indicate RECs. The report names the occupants interviewed and how long each has occupied the property (E1527-21, 10.5.2.2, 10.5.2.4).
Documents. Before the site visit the owner, key site manager and user are asked for safety data sheets, community right-to-know plans, spill prevention, countermeasure and control plans, hazardous waste generator notices or reports, environmental permits and agency correspondence on violations (E1527-21, 10.8.1). The non-scope appendix notes that facilities storing or using certain volumes of hazardous chemicals may have reporting duties under the community right-to-know law (E1527-21, X6.6.1).
Government records. The federal generator list and state registered tank lists are standard sources searched for the subject property and adjoining properties (RCRA generators, registered storage tanks; E1527-21, 8.2.2, Table 2). Neither listing alone shows a release.

What the federal rule says

Among what the inquiry rule (40 CFR part 312) says the inquiry must seek to identify:

Current and past uses of hazardous substances;

40 CFR 312.20(e)(1)(ii), edition revised as of July 1, 2025

For a party seeking the liability protections that item stops at hazardous substances; the standard includes petroleum products (E1527-21, 1.1.2).

How it is written up

The materials are a finding when the professional judges they may indicate hazardous substances or petroleum products present or likely present at the subject property, as the drum is in the appendix's first illustration (E1527-21, 12.5, X4.3).

Where the professional concludes a release, or a likely one, has left such substances present or likely present at the subject property, the opinion gives the grounds: the materials, the years, the storage, the evidence. Unless judged a de minimis condition or a historical REC, the REC is listed in the Conclusions, and the professional should give an opinion on additional investigation, if any (E1527-21, 3.2.20, 3.2.39, 12.7, 12.8).

Where the professional concludes the storage poses a material threat of a future release, the opinion names the obvious condition and why a release with likely impact is expected, and the REC is listed in the Conclusions (E1527-21, 3.2.52, 12.6, 12.7).

Where the professional concludes neither, the opinion gives its reasoning on the same four facts (E1527-21, 12.6). Whether the business meets storage, labeling, permit or reporting rules is regulatory compliance, a non-scope consideration; work on it, or on business environmental risk, is an additional service agreed with the user and should be reported only as the terms of engagement specify (E1527-21, 3.2.11, 4.4, 12.10, 13.1.5.14).

Access to the space where the business keeps its materials, or an interview with the key site manager, may be what cannot be had. Required information that good faith efforts could not obtain is a data gap, significant if it affects the ability to identify a REC: named in the Findings with the sources consulted, discussed in the Opinions and listed in the Conclusions (E1527-21, 3.2.19, 3.2.78, 12.5.1, 12.6.2, 12.7).

This page is general reference for environmental professionals. It does not classify any property. ASTM E1527-21 is the standard and is not reproduced here; the judgment of the environmental professional on the facts governs.