Phase I and Phase II Environmental Site Assessments

When purchasing commercial real estate a buyer must be aware of any potential environmental liabilities they will become responsible for once the property is purchased.  A Phase I Environmental Site Assessment (ESA) of the property by Singleton Environmental (SEI) can assist the buyer in identifying and quantifying such liabilities.

Once SEI has completed the site assessment proper documentation will be completed in accordance with the EPA Standards and Practices for All Appropriate Inquires as published in the Standard Practice for ASTM E 1527-05 Environmental Site Assessments. Once complete a property owner now has a second layer of protection through the Innocent Land Owner Act against unidentifiable liabilities as long as one can prove a thorough investigation was conducted prior to purchasing a property. 

Singleton Environmental assess former agricultural properties, large tracts of land, operating or closed gas stations, and other commercial properties. As of February 2018, Singleton Environmental now uses aerial drone technology to assist with site assessments if needed.  Certain weather and FAA regulations apply.

Phase I Purpose: To identify environmental conditions prior to purchasing, re-financing, or option agreement, and ultimately to assist property owners to choose a site that presents manageable environmental risks.

Goal and Objectives: A Phase I Environmental Site Assessment (ESA) is a qualitative assessment intended to help owners of property satisfy one of the requirements to qualify for CERCLA’s(1) innocent landowner defense. Since the mid-1980s, it has also been incorporated into the environmental policies of most lending organizations as a requirement of any loan application involving a parcel of commercial real estate.

Please note that in a Phase I ESA, no samples nor tests are made of any materials (i.e., no air, water, soil, building materials or site substances are tested or analyzed). In addition, a Phase I ESA is not an operational regulatory compliance audit. Federal, state, and local laws may impose environmental obligations that are usually not included in a Phase I ESA.

READ THE ENVIRONMENTAL POLICY OF YOUR BANK. ARE YOU REQUIRED TO PERFORM AN ASSESSMENT BEYOND THE SCOPE OF ASTM(2) E 1527 STANDARD PRACTICE? Non-scope considerations include, but are not limited to: asbestos-containing materials, radon, lead-based paint, lead in drinking water, and wetlands.

(1) CERCLA = Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (2) ASTM = American Society for Testing and Materials

Phase II Environmental Site Assessment

A Phase II ESA is defined as a quantitative assessment. It is the actual testing for specific hazards, identified in the Phase I ESA. These tests usually includes soil and/or groundwater analysis for volatile organics compounds (VOCs), semi-volatile organic compounds (SVOCs), metals, herbicides, pesticides, hazardous biological compounds, and other hazardous substances identified in the Phase I ESA.