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Why Do I Need A Phase I Environmental
Site Assessment?

Local, state, and federal laws have been established to protect people and the environment from environmental contamination. The release of hazardous substances and/or petroleum products as well as other environmental contaminants can pollute the air, soil, and groundwater and affect human health. They can also create liability for property owners or those who purchase contaminated property. Under the Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, persons may be held strictly liable for cleaning up contamination at properties that they either currently own or operate, or owned or operated in the past. Strict liability under CERCLA means that liability for environmental contamination may be assigned based solely on property ownership. This means that if you unknowingly purchase a property that is later discovered to be contaminated, you may be held liable. This is why you should always conduct your environmental due diligence prior to purchasing commercial and sometimes residential property.

Understanding Phase I ESAs and All Appropriate Inquiry

With passage of the Small Business Liability Relief and Brownfields Revitalization Act (the “Brownfields Amendments”) to CERCLA in 2002, All Appropriate Inquiries, or AAI, has been established as the process of evaluating a property’s environmental conditions. The AAI Final Rule was published in the Federal Register on November 1, 2005 (40 CFR Part 312) and went into effect on November 1, 2006.

 

The AAI Final Rule provides that ASTM International Standard E1527-21 (“Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process”) and E2247-16 (“Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property”) can be used to satisfy the statutory requirements for conducting AAI.

The intent of AAI is to assess if current or historical property uses have impacted the soil or groundwater beneath the property that could pose a threat to the environment and/or human health. If these issues are identified, it presents a potential liability for the owner and/or lender and can negatively affect the value of the property. In addition to commercial and government entities purchasing property, anyone purchasing a property for non-residential use that is interested in seeking protection from CERCLA liability is subject to AAI requirements.

Discover Our Approach to Phase I ESAs

Our Phase I ESAs are conducted according to ASTM 1527-21 or ASTM E2247-16. According to the standards, a Phase I ESA should include the following:

Regulatory Database Review

We examine federal, state, tribal, and local environmental databases to identify nearby sites with environmental issues that may impact the property we are assessing.

Historical Land Use Research

We examine available aerial photographs, historical topographic maps, city directories, fire insurance maps, plats, and other reasonably ascertainable historical sources for information indicating past uses of the property that may have involved hazardous substances or petroleum products.

Site Reconnaissance

A site reconnaissance is performed to observe current conditions and to look for evidence of buried waste, underground storage tanks, past spills or releases of contaminants, distressed vegetation, unusual soil staining, or other indications of the presence of contaminants.

Interviews

We attempt to interview past and present property owners, managers, operators, occupants, and government or local officials, as needed, for knowledge of past and present uses of a property.

Phase I ESA Report

The purpose of a Phase I ESA is to identify recognized environmental conditions, or RECs, in relation to the subject property. Upon completion of the assessment, we will prepare a comprehensive report that documents our findings related to RECs identified during the assessment, if any. If RECs are identified and if requested by you, we will also present our recommendations.

Other Due Diligence Services

Although it does not meet the requirements for AAI and will not offer protection from potential CERCLA liability, a Transaction Screen Assessment (TSA) conducted according to ASTM International Standard 1528-22 (“Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process”) is another due diligence option that may be useful in certain situations.

Contact Us to Discuss Our Environmental Due Diligence Services

Evans Environmental Consulting specializes in due diligence services to identify potential environmental liability concerns as well as environmental issues that may pose risks to our clients, their investments, or site workers. Our Phase I ESAs and TSAs are conducted by an experienced Environmental Professional according to the respective ASTM standards. Contact us today to discuss your specific project needs.

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