ASTM_E_2137_-_17.pdf

Designation:E213717Standard Guide forEstimating Monetary Costs and Liabilities for EnvironmentalMatters1This standard is issued under the fixed designation E2137;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 PurposeThe purpose of this document is to provide astandard guide for good commercial and customary practice inestimating costs and liabilities for environmental matters.2Many possible uses for estimates of costs and liabilities forenvironmental matters exist,including but not limited tobusiness decision making and portfolio optimization,duediligence and communications involving acquisitions anddivestitures,regulatory requirements,third-party lawsuits,in-surance premium calculation and claim settlement,change ofproperty use,revitalization,compliance planning,constructionand project control,analysis of remedial alternatives,budgeting,strategic planning,audit defense,financing,andinvestment analysis by shareholders.The use of estimatedcosts and liabilities developed in accordance with this standardmay be subject to other standards applicable to the matterinvolved.For example,it is not intended to supersede account-ing and actuarial standards.This standard does not address theestablishment of reserves or disclosure requirements.1.2 ObjectivesThe objective of this standard is to provideguidance on approaches for estimating costs and liabilities forenvironmental matters.1.3 This international standard was developed in accor-dance with internationally recognized principles on standard-ization established in the Decision on Principles for theDevelopment of International Standards,Guides and Recom-mendations issued by the World Trade Organization TechnicalBarriers to Trade(TBT)Committee.2.Referenced Documents3,42.1 ASTM Standards:E1527 Practice for Environmental SiteAssessments:Phase IEnvironmental Site Assessment ProcessE1739 Guide for Risk-Based Corrective Action Applied atPetroleum Release SitesE2081 Guide for Risk-Based Corrective ActionE2091 Guide for Use of Activity and Use Limitations,Including Institutional and Engineering ControlsE2107 Practice for Environmental Regulatory ComplianceAuditsE2150 Classification for Life-Cycle Environmental WorkElementsEnvironmental Cost Element StructureE2173 Guide for Disclosure of Environmental LiabilitiesE2205 Guide for Risk-Based Corrective Action for Protec-tion of Ecological ResourcesE2247 Practice for Environmental SiteAssessments:Phase IEnvironmental Site Assessment Process for Forestland orRural PropertyE2637 Guide for Utilizing the Environmental Cost ElementStructure Presented by Classification E2150E2718 Guide for Financial DisclosuresAttributed to ClimateChange3.Terminology3.1 Definitions:3.1.1 accretionan increase to the present value of aliability solely due to the passage of time,normally a year;alsoknown as“unwinding the discount.”3.1.2 activity and use limitations(AULs)legal or physicalrestrictions or limitations on the use of,or access to,a site orfacility to eliminate or minimize potential exposures to chemi-cals of concern,or to prevent activities that could interfere withthe effectiveness of a response action,to ensure maintenance ofa condition of“acceptable risk”or“no significant risk”tohuman health and the environment.These legal or physicalrestrictions are intended to prevent adverse impacts to indi-viduals or populations that may be exposed to chemicals ofconcern.1This guide is under the jurisdiction ofASTM Committee E50 on EnvironmentalAssessment,Risk Management and Corrective Action and is the direct responsibil-ity of Subcommittee E50.05 on Environmental Risk Management.Current edition approved March 1,2017.Published April 2017.Originallyapproved in 2001.Last previous edition approved in 2011 as E2137 06(2011).DOI:10.1520/E2137-17.2For the purposes of this standard,costs and values are defined as monetaryestimates.3Appendix X1 includes citations for additional relevant documents and require-ments from other organizations including FASB,GASB,PCAOB,FASAB,IASB,and SEC.4For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United StatesThis international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for theDevelopment of International Standards,Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade(TBT)Committee.1 3.1.3 allocation or allocated sharethe portion of cost orliability for which a pa