Phase I
Environmental site assessments

A Phase I Environmental Site Assessment, or Phase I ESA, is the first step in the environmental assessment of a commercial or industrial property, with the goal of identifying existing or potential environmental conditions that may impact the soil or groundwater on or beneath the property.

A Phase I ESA is most often performed during, or in advance, of a property transaction. Those transactions may include property sales, loan refinancing, or mergers or acquisitions of entities with real estate assets. Additionally, a Phase I ESA may be a valuable tool for existing property owners who are facing existing or potential environmental conditions on their property, but are unsure of the source of those environmental conditions.

The Phase I ESA process is typically a non-intrusive assessment of the property, meaning that invasive assessment techniques, such as soil and groundwater sampling, are not utilized. The Phase I investigation will generally involve four components:

• Evaluation of the history of the property;
• Environmental Interviews;
• A Site Reconnaissance; and,
• A written report of findings.

Phase I ESAs can be designed to meet the goals of the specific transaction or goals of the User of the Phase I ESA. (A User is typically the entity that ordered the Phase I ESA If the User, such as a prospective buyer, lending institution, or property owner.) If the User is potentially purchasing a property, they will likely want a Phase I ESA that meets Federal All Appropriate Inquiries (AAI) requirements, that will assist them in obtaining CERCLA Liability Protections. This type of Phase I ESA, generally referred to as an ASTM/AAI Compliant Phase I ESA, is generally conducted under the guidelines of the American Standards for Testing and Measurements (ASTM) Standard E1527. This standard explains the processes necessary for conducting an industry standard Phase I ESA, and generally meets the Phase I ESA AAI requirements for CERCLA Liability Protections. ASTM/AAI Compliant Phase I ESAs are conducted under the direction of an Environmental Professional.

In some situations, a Limited Phase I ESA or Business Risk Phase I ESA, can be conducted on a property, when CERCLA Liability Protections are not the desired goal of the assessment. These types of Phase I ESAs can often be completed more quickly and at lesser cost. However, while sometimes a useful tool, you should discuss the limitations and applicability of using these types of Phase I ESAs with your Environmental Consultant prior to ordering a Limited Phase I ESA or Business Risk Phase I ESA.

PEC’s team of Environmental Professionals can help you decide what type of Phase I ESA will meet your needs. Start your Free Project Review now, and let us join your team.

PECs Standard ASTM/AAI Compliant Phase I ESAs will include the following process: