The Phased Environmental Assessment

To protect themselves from inadvertently assuming this liability, many buyers and lenders are requiring an environmental assessment to be conducted before transfer of ownership or loan approval. The cost of the assessment is usually made a part of the non-refundable closing costs for the property transfer.

The problem of establishing the proper scope of an environmental assessment has been addressed by numerous organizations including the Environmental Protection Agency (EPA), lender organizations, and environmental consulting firms. The environmental assessment process has evolved into three phases: Identification, Confirmation/Description and Remediation. These phases represent basic activities ranging from the initial investigation of a property through the final clean-up of contamination. While there is often some variability within and crossover between the phases, the following is a brief description of what each phase of an environmental assessment normally covers.

PHASE I - Identification

The phase one framework currently used by most is the ASTM Standard which includes:

1. A thorough review of the history of the site.
This usually involves tracing the use of the property back at least fifty (50) years and preferably back to the time the property was 'unimproved' land. The prior land use investigation looks for those types of uses that could have involved the use, manufacture, storage, etc. of hazardous, toxic or regulated chemicals or materials.

2. A review of federal, state, and local government records pertaining to the site.
This stage of the investigation involves checking environmental enforcement records, geological and hydrological records, aerial photos, subdivision plats, land use planning and zoning documents, and other related records for indications of suspect conditions or activities on or around the property. Such investigations usually include surrounding properties for a radius of one half to one mile to determine off site conditions that may affect the property in question.

A NOTE OF CAUTION: many firms providing Phase I evaluations use `national' databases for this information (ie: EPA, commercial providers, etc.). While this may slightly reduce the cost of the project, that information can be out of date by up to a year.

3. An on-site visual investigation of the property.
After the completion of steps 1 & 2 the investigator then conducts an on-site inspection of the property to determine the existence of any visible suspect materials or conditions. This investigation covers such items as building construction, illegal dumping, drainage, construction debris, soil variability and staining, types and health of flora and fauna, on-site materials and equipment that may contain hazardous materials such as tanks, PCB filled transformers, old wells and cisterns, etc. and other visible evidence of contamination or sources of contamination.

Although the on-site investigation does not normally include sampling, the assessment report should include recommendations for sampling based on the Phase I findings.

PHASE II - Confirmation/Definition

Confirmation sampling and testing is the scope of the Phase II Environmental Assessment. Based on the findings of the Phase I assessment and regulatory mandated time periods for identification, suspect materials and conditions are further investigated to define or confirm the existence of hazardous, toxic or regulated materials. This usually involves the collection of samples for analysis. Based on the analytical results, any correction, abatement or clean-up actions that may be required are developed as part of the Phase II investigative report.

The Phase II report should reference applicable regulatory mandates and include actions required by the owner for compliance. Many of the regulations require abatement action to begin within a very short period of time after the conditions become known.

PHASE III - Remediation

Phase III involves the clean-up of the property and includes sampling and testing done during remediation activities and upon completion for 'clean site' certification. The purpose of this phase is to return the property to an environmentally sound and marketable condition.

Finally, if the environmental assessment goes beyond Phase I be prepared for what could be an extended delay in your expected 'closing date'.

The CERL Solution!

More Information on the Environmental Site Assessment
Frequently Asked Questions About the Phase I ESA