Phase I Environmental Site Assessments

There are several reasons why a property may require a Phase I Environmental Site Assessment:

Transfer of Ownership

Many transfers of ownership of a commercial property are required by law to receive a Phase I Environmental Site Assessment.

Financing

Many banks will not approve a loan for the purchase of a property if a trained environmental professional has not reviewed the property for risk of environmental contaminants. This reduces the risk of the transaction and gives them a more reliable figure on the value of the property.

There are many contaminants on a property that could require further testing and remediation. These are some of the common concerns with a property that may be addressed in a Phase I ESA. If the property used to contain or still contains underground storage tanks or above ground storage tanks, then there is a risk that they may have leaked over time and the soil and/or groundwater is contaminated with petroleum hydrocarbons.

• Petroleum Hydrocarbons
• Indoor Air Quality
• Lead
• Asbestos
• Mold
• Radon
• Pesticides
• Polychlorinated Biphenyls
• Radiological Hazards
• Wetlands
• Endangered Species
• Cultural and historical resources
• Ecological resources

ASTM International has issued a set of standards known as Standard E1527 for environmental professionals to follow in order to conduct a Phase I ESA accurately and to set a consistent standard for Phase I ESA’s. These standards are frequently updated to cover additional hazardous materials, as it was done recently. Banks and other lenders may request additional investigations that are not included in the list of ASTM standards.

Review of Records

The environmental professionals will examine records that show previous transfers of ownerships of the property and what the properties were used for. Any heavy industrial activities might raise some red flags and warrant further inspection or testing in a Phase II ESA. Aerial photographs will also be reviewed to show any historical changes or developments done on the property or on surrounding properties.

Site Reconnaissance

A site reconnaissance involves a visual inspection of the property and the surrounding properties. Pictures may be taken of the property and some measurements may be conducted, but testing for environmentally hazardous materials is not conducted in a Phase I ESA.

Interviews

Interviews may be conducted with anyone or any organizations that can be helpful in providing additional information on the property or surrounding properties. The environmental professionals may meet with local health departments, fire departments, water departments, and petroleum tank management associations.

Report

A written report will be conducted by the environmental professionals that will outline the findings from the Phase I ESA and any conclusions that can be made regarding the property. If environmental contamination may be present, a Phase II Environmental Site Assessment may be recommended.

American Society for Testing and Materials (ASTM) International Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process / Designation E1527-21 (ASTM Standard Practice E1527-21) to satisfy the CERCLA All Appropriate Inquiry (AAI) regulation.

The Environmental Protection Agency (EPA) issued their final rule on December 15, 2022. The updated standard, which was published in November 2021, will satisfy AAI requirements for parties seeking landowner liability protection relief under CERCLA and for recipients of brownfield grants for conducting site assessments.

With the approval of the ASTM E1527-21 standard, the EPA will sunset the ASTM E1527-13 standard, which will no longer be a recognized method for complying with the AAI as of December 15, 2023. (One year from the date of publication of the final rule in the Federal Register).

For more information on the ASTM E1527-21 standard – click here

Not familiar with the Environmental Due Diligence Process? Click here for the basics

• Completed to ASTM 1527-21 standard satisfying All Appropriate Inquiry
• Executive Summary, Clear Scope of Work, and Provision of Supporting Documentation and Sources Checked are included in the Phase I ESA
• In-house research department with extensive archive of historical information
• On-Site reconnaissance for a standard Phase I ESA with in-depth interviews of knowledgeable site contacts
• Interviews with appropriate Government and Private Sector Sources of Information
• Review of standard environmental record sources from local, state, and federal agencies within ASTM approximate minimum search distances
• Regular updates for all stakeholders during process
• Strict client confidentiality
• Clear summary of Recognized Environmental Conditions (RECs)
• Incorporation of specific lender requirements for issuance or reliance language for the purposes of making loan decisions.
• If conditions warrant additional investigation, a written Phase II Environmental Site Assessment proposal describing means for identifying and characterizing environmental contamination revealed during a Phase I ESA will be prepared upon request
• HUD, Fannie Mae/Freddie Mac compliant
• Use of PARCEL for multiple site portfolios
• Visual inspection for the purpose of identifying suspect Asbestos Containing Materials (ACMs).
• Vapor Encroachment Condition (VEC) screening available upon request in accordance with ASTM Standard 2600-10.

Our parent company, Pinchin Ltd, is one of Canada’s largest environmental consulting firms and provides Phase I Environmental Site Assessments in Toronto and across Canada. Their team of professional experts possess a wealth of knowledge and expertise and are dedicated to helping you balance your business goals with an understanding of both your natural and built environments.