Phase I Environmental Inspections
Phase I Environmental Site Assessments are a standard component of commercial real estate due diligence. These assessments help lenders, buyers, and property owners identify potential environmental liabilities and determine whether any Recognized Environmental Conditions (RECs) exist on or near the property.
We perform Phase I Environmental Site Assessments (ESAs) in accordance with ASTM E1527-13 and 40 C.F.R. Part 312 (Standards and Practices for All Appropriate Inquiries) and by incorporation the procedures set forth in ASTM Standard E1527-21.
Goal of Inspection
The primary goal of a Phase I Environmental Inspection is to identify potential environmental risks associated with a property before a real estate transaction is completed. This process involves reviewing historical records, examining regulatory databases, and conducting a site inspection to determine whether any past or present activities may have resulted in contamination. The assessment helps identify Recognized Environmental Conditions (RECs) that could indicate the presence of hazardous substances or petroleum products in the soil, groundwater, or surrounding environment.
Key Points For Phase I Environmental Inspection
A Phase I Environmental Site Assessment involves a comprehensive review of a property’s current and historical conditions to identify potential environmental concerns.
The process typically includes a search of official records to determine past ownership and land use, as well as a site visit to observe existing conditions and operations. Inspectors review regulatory agency records for permits, violations, or other environmental documentation and may conduct interviews with current or former owners, tenants, or nearby property occupants.
Additional research often includes reviewing available site maps, aerial photographs, and city directories to understand historical property use.
Environmental professionals may also evaluate information related to the local water table, nearby water wells, and water quality data, along with reviewing any prior geological or hydrogeological studies conducted on the site or surrounding properties. Together, these steps help identify potential Recognized Environmental Conditions that could warrant further investigation.
All findings are compiled into a detailed report, providing clients with the information needed to make informed decisions moving forward.
