{"id":299,"date":"2011-05-31T14:07:05","date_gmt":"2011-05-31T18:07:05","guid":{"rendered":"http:\/\/www.environmentalriskmanagers.com\/erm\/?p=299"},"modified":"2011-05-31T14:07:05","modified_gmt":"2011-05-31T18:07:05","slug":"phase-i-environmental-site-assessments-esas","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/phase-i-environmental-site-assessments-esas\/","title":{"rendered":"Phase I Environmental Site Assessments"},"content":{"rendered":"

environmental Strategist, between the lines: I am often asked what a Phase I site assessment entails. The following article does an excellent job of describing not only what comprises a Phase I but also discusses changes taking place with the addition of All Appropriate Inquiry (AAI). Please share this with client\u2019s looking or buy or sell commercial property.<\/p>\n

Phase I \u2013 Environmental Site Assessments (ESAs)
\nBy Richard Popino
\nCourtesy of Common Sense Solutions, LLC
\nOct. 1, 2009<\/p>\n

Nowadays, real estate mortgage companies often require the execution of a Phase I Environmental Site Assessment (ESA) to identify a property\u2019s potential environmental concerns which may affect its value and\/or liabilities. The purpose of the Phase I ESA is to disclose any Recognized Environmental Condition (REC) associated with the property. It comprises four main activities:<\/p>\n

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  1. Reviewing records that will help identify RECs connected with the property;<\/li>\n
  2. Site Inspections that will help evaluate any potential RECs at the site. These can\u00a0include building interior and exteriors, public utilities, transformers, septic systems, water\u00a0wells, underground storage tanks, and other items with the potential for environmental\u00a0contamination;<\/li>\n
  3. Interviews with past and present owners, operators and occupants of the property as\u00a0well as interviews with state and\/or local government officials. This interviews will help\u00a0gather information about the property history; and<\/li>\n
  4. Report Writing which will include all findings, professional\u2019s opinion of the impact\u00a0of those findings and any remedial recommendations identified as a result of the Phase\u00a0I ESA. Parties (including recipients of Brownfield grants) who want to seek a defense\u00a0to Superfund (CERCLA) liability must comply with a number of requirements outlined\u00a0in CERCLA and the Brownfields Act. The landowner of a contaminated property that\u00a0qualifies as: \u201cBona Fide Prospective Purchasers (BFPPs), Contiguous Property Owners\u00a0(CPOs) and\/or Innocent Landowners (ILOs) are entitled to the Landowner Liability\u00a0Protections. All of them involve, among other requirements, performing ‘All Appropriate\u00a0Inquiry’ rule (AAI) to determine the potential for environmental liabilities that exist on a\u00a0property.<\/li>\n<\/ol>\n

    The new AAI rule references the American Society for Testing and Materials (ASTM)\u00a0Standard Practice 1527-05: ‘Standard Practice for Environmental Site Assessments:\u00a0Phase I Environmental Site Assessments Process.’ The ASTM 1527 Standard has been\u00a0the recognized method for conducting real estate environmental assessments since 1993.\u00a0Compared to the current standard, the new rule will require:<\/p>\n