Definition
A Site Assessment (Environmental), commonly referred to as an Environmental Site Assessment (ESA), is a detailed investigation aimed at identifying any existing or potential environmental contamination liabilities on a property. The assessment is typically divided into phases:
Phase I Environmental Site Assessment
Phase I ESA includes a historical review, site inspection, interviews, and search of regional databases to determine past and current use and potential environmental concerns associated with the site. It does not involve actual chemical testing of soil, air, groundwater, or building materials.
Phase II Environmental Site Assessment
If a Phase I ESA identifies potential environmental concerns, a Phase II ESA is conducted. This involves sampling and laboratory analysis to confirm the presence of hazardous substances, ascertain their extent and that they comply with environmental regulations.
Phase III Environmental Site Assessment
In instances where significant contamination is found, Phase III ESA includes detailed analysis, risk assessments, and planning of remediation measures. It often leverages engineering controls, soil remediation, and groundwater treatment techniques.
Examples
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Commercial Property Transaction:
- Before purchasing a large commercial property, a developer commissions a Phase I ESA. Historical research reveals that part of the property was once used for industrial purposes possibly involving hazardous chemicals. A Phase II ESA is conducted, uncovering traces of petroleum and solvents in the soil. Based on the findings, the scope and cost of possible remediation inform the negotiation and final purchase price.
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Residential Development:
- A developer plans to convert an old factory site into residential housing. A Phase I ESA identifies asbestos-containing materials (ACM) and abandoned underground storage tanks (USTs). Phase II assessments test the site’s soil and water for contaminants related to this previous usage. Planned remediation ensures the site is safe for future resident occupancy.
Frequently Asked Questions (FAQs)
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What triggers the need for an environmental site assessment?
An ESA is generally required during property transactions, refinancing, land development, or whenever a change in ownership or use is expected, especially where prior industrial or commercial use is involved.
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How long does a Phase I ESA typically take?
The time frame can vary, but a Phase I ESA generally takes approximately 2–4 weeks from commissioning to delivery of the final report.
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Is it mandatory to conduct a Phase II ESA if issues are found in Phase I?
Yes, if potential environmental risks are identified in Phase I, it is common practice and often required by law or lenders to proceed to Phase II to confirm and delineate the contamination.
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Can a property transaction proceed without ESAs?
Technically, it can, but it significantly increases liability risks for the buyer, especially concerning unidentified environmental issues which could result in substantial cleanup costs and legal ramifications.
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Who conducts environmental site assessments?
ESAs are conducted by certified environmental professionals with expertise in environmental science, geology, engineering, chemistry, etc. They are proficient in local, state, and federal regulations associated with environmental due diligence.
Related Terms
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Brownfield: A real property, the expansion, redevelopment, or reuse of which may be complicated by the presence of hazardous substances, pollutants, or contaminants.
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Contamination: The presence of hazardous substances in the environment, indicating potential risk for human health or ecological systems.
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Due Diligence: Comprehensive appraisal of a business or property, conducted before a business transaction or real estate purchase, to ascertain and evaluate its assets and liabilities.
Online Resources
- EPA - Environmental Assessment
- ASTM International - E1527-13 Standard Practice for Environmental Site Assessments
- USDA - Environmental Assessment & Regulations
References
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Environmental Protection Agency. “Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).” Available at: EPA CERCLA.
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American Society for Testing and Materials (ASTM). “ASTM E1527-13 Standard Practice for Environmental Site Assessments.” ASTM International, 2013.
Suggested Books for Further Studies
- “Environmental Site Assessment Phase I: A Basic Guide” by Kathleen Hess-Kosa
- “Site Assessment and Remediation Handbook, Second Edition” by Martin N. Sara
- “Brownfields Development: From Practice to Policy” by Justin Rusty McCorkle, Dana Ann Paulemont
