Why a Phase I Environmental Site Assessment?
Authored By Scott St. John - V.P. of Engineering and Regulatory Compliance
If you are reading this, you probably have some interest or need for a Phase I Environmental Site Assessment (ESA). Why do you need a Phase I ESA? In short, a Phase I provides the developer or purchaser of a real estate property with a baseline snapshot of the environmental condition of the property. Phase I is the first step of the environmental due diligence process prior to closing a real estate transaction.
Whether it is a real estate transaction involving solar development, wind development, or commercial development, the Phase I is a vehicle used to obtain innocent landowner protections or landowner liability protections (LLPs). It is in the purchaser’s best interest to limit the liability associated with any existing contamination that the property might have. If a Phase I is not completed by a reputable environmental firm, the purchaser could be legally responsible for environmental liabilities on the property.
The Phase I is used to identify any Recognized Environmental Concern (REC). A REC is the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property. There are several steps taken to determine RECs including desktop research, aerial photography, and Sanborn maps. A site visit is then conducted to field verify anything found in the desktop research as well as provide for a more comprehensive site assessment. The process for Phase I is outlined in the American Society for Testing Materials (ASTM) E1527-13.
Since a Phase I is a snapshot of the conditions of the property at a moment in time, the term of validity of the Phase I is limited. Generally, Phase I’s are good for 180 days from the date of completion. If the closing occurs after 180 days but prior to 1 year then the Phase I is still good, however, it will need to be updated. After a year, the Phase I has expired.
Reagan Smith has the requisite Environmental Professionals that can provide a comprehensive Phase I that meets and exceeds the requirements of the ASTM standards. We are an approved vendor for major oil and gas companies, solar, wind, and commercial developers. Contact Reagan Smith to speak with one of our professionals about your development project.