ASTM E2137-22

SIGNIFICANCE AND USE 4.1 Use—The standard is intended for use on a voluntary basis by an estimator of costs and liabilities for environmental matters. The user may elect to apply this standard for any or all uses outlined in the Purpose. Application of this standard for one use does not compel application of the standard for all or any other use. 4.2 Principles—The following principles are an integral part of this standard and should be used to resolve ambiguity or dispute regarding the interpretation of estimated costs and liabilities for environmental matters. 4.2.1 Framing the Estimate—It is important to understand and document/disclose the framework in which the estimate is being made, including identification of the requestor, estimator and relevant qualifications, purpose of the estimate, audience/user of the estimate, limitations, assumptions, and a description of what constitutes a reliable estimate. 4.2.2 Caution When Repurposing Estimates—The estimator should exercise care when repurposing an estimate generated for one objective and audience. For example, an estimator may use the expected value approach on a given cost and liability, and find that the “financial assurance estimate” uses unique financial assumptions (inflation, discount rate, time horizon) specified by a state regulator, while a “project controls” or “reserve” forecast – for the very same cost and liability -- will use differing financial factors. 4.2.3 Uncertainty Not Eliminated—Even though an estimate of costs and liabilities for environmental matters is prepared in accordance with this standard, uncertainty remains with regard to, among other things, the resolution of contractual, technological, regulatory, legislative, and judicial issues, which could affect the costs and liabilities. However, inherent uncertainty in estimates should not prevent an estimate from being made. 4.2.4 Periodic Review of Assumptions and Estimates—Assumptions underlying estimates should be reviewed, documented and p... SCOPE 1.1 Purpose—The purpose of this document is to provide a standard guide for good commercial and customary practice in estimating costs and liabilities for environmental matters.2 Many possible uses for estimates of costs and liabilities for environmental matters exist, including but not limited to business decision making and portfolio optimization, due diligence and communications involving acquisitions and divestitures, regulatory requirements, third-party lawsuits, insurance premium calculation and claim settlement, change of property use, revitalization, compliance planning, construction and project control, analysis of remedial alternatives, budgeting, strategic planning, audit defense, financing, and investment analysis by shareholders. The use of estimated costs and liabilities developed in accordance with this standard may be subject to other standards applicable to the matter involved. For example, it is not intended to supersede accounting and actuarial standards. This standard does not address the establishment of reserves or disclosure requirements. 1.2 Objectives—The objective of this standard is to provide guidance on approaches for estimating costs and liabilities for environmental matters. 1.3 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.