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Phase I environmental site assessment - Wikipedia, the free encyclopedia

PhaseIenvironmentalsiteassessment
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IntheUnitedStates,anenvironmentalsiteassessmentisa reportpreparedforarealestateholdingthatidentifiespotential orexistingenvironmentalcontaminationliabilities.The analysis,oftencalledanESA,typicallyaddressesboththe underlyinglandaswellasphysicalimprovementstothe property.Aproportionofcontaminatedsitesare"brownfield sites."Inseverecases,brownfieldsitesmaybeaddedtothe NationalPrioritiesListwheretheywillbesubjecttotheU.S. EnvironmentalProtectionAgency'sSuperfundprogram. Theactualsamplingofsoil,air,groundwaterand/orbuilding Anypieceofrealestatecanbethesubjectof materialsistypicallynotconductedduringaPhaseIESA.The aPhaseIESA. PhaseIESAisgenerallyconsideredthefirststepintheprocess ofenvironmentalduediligence.Standardsforperforminga PhaseIsiteassessmenthavebeenpromulgatedbytheUSEPA[1]andarebasedinpartonASTMinStandard E152705.[2] Ifasiteisconsideredcontaminated,aPhaseIIenvironmentalsiteassessmentmaybeconducted,ASTMtest E1903,amoredetailedinvestigationinvolvingchemicalanalysisforhazardoussubstancesand/orpetroleum hydrocarbons.[3]

Contents
1Background 2Triggeringactions 3Scope 4Preparers 5Examples 6Internationalcontext 7Otherreporttypes 8Seealso 9References

Background
Asearlyasthe1970sspecificpropertypurchasersintheUSAundertookstudiesresemblingcurrentPhaseI ESAs,toassessrisksofownershipofcommercialpropertieswhichhadahighdegreeofriskfrompriortoxic chemicaluseordisposal.Manytimesthesestudieswerepreparatorytounderstandingthenatureofcleanup costsifthepropertywasbeingconsideredforredevelopmentorchangeoflanduse.
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IntheUnitedStatesofAmericademandincreaseddramaticallyfor thistypeofstudyinthe1980sfollowingjudicialdecisionsrelated toliabilityofpropertyownerstoeffectsitecleanup.Interpreting theComprehensiveEnvironmentalResponse,Compensationand LiabilityActof1980(CERCLA),theU.S.courtshaveheldthata buyer,lessor,orlendermaybeheldresponsibleforremediationof hazardoussubstanceresidues,evenifapriorownercausedthe contaminationperformanceofaPhaseIEnvironmentalSite Assessment,accordingtothecourtsreasoning,createsasafe harbor,knownasthe'InnocentLandownerDefense'.Most Leakingundergroundstoragetanksare engineeringfirmswereveryconcernedaboutunknownliabilities onesourceofhazardoussubstance andavoideddealingwiththenewRCRAdefinitionof"Due liability diligence".DuringthisperiodJosephmandukewroteand compiledaprotocoltosimplyaddresstheseissues.Theprocess involvedaphysicalsiteassessmentbyatraineddegreedinspectorarmedwiththeHTSduediligence checklist.HTSwasactuallyabletoofferlendersaninsuredproductin1989givingawayforJoeManduketo maketheINC500in1993.TheexactoriginalrootoftheHTSbankingstandardisthecoreofthefirstASTM standard.Thenwhathasorlscontributedtowhatwouldbecomeknownasthefirstdiscretescopeofworkto addressthescopeofservicesrequiredtomeetthe'innocentpurchaserdefense".Thisincludedinspector technicalqualificationsasbeingdegreedscientistsandtheuseofa"Duediligenceinquirychecklist",Joseph MandukeandHTSaretheinventorofachecklist,inspectorqualifications,andotherworkbyregisteringwith theUnitedStates copyrightandtrademarkofficein1988).JosephMandukepresidentofHTSfirstcompiledthescopeofwork andtheoriginalsiteinspectionprocedure.Over1000esa'swereperformedoutoftheColumbiaMaryland office.Thecopyrighttotheoriginalworkfortheprocesswasnotenforcedatthetime.Themandukefamilyis consideringenforcementoftheoriginalprocedureagainstASTMandcompanieswhohaveviolatedthe copyrights.TheoriginalsofthephaseoneesastillexistandareinthepossessionofMr.Manduke.Royalties andviolationoftheoriginalmaterialsarepending.
[ 4 ] T h i sw a st h ew o r kt h a tb e c a m et h eb a s i so ft h em o d e r nA S T Ms t a n d a r d .

In1998thenecessityofperformingaPhaseIESAwasunderscoredbycongressionalactioninpassingthe SuperfundCleanupAccelerationActof1998.[5]Thisactrequirespurchasersofcommercialpropertyto performaPhaseIstudymeetingthespecificstandardofASTME1527:StandardPracticeforEnvironmental SiteAssessments:PhaseIEnvironmentalSiteAssessmentProcess. Themostrecentstandardis"StandardsandPracticesforAllAppropriateInquiries"40CodeofFederal Regulations,Section312[6]whichdrewheavilyfromASTME152705whichhasbecomeknownas'All AppropriateInquiry'(AAI).PreviousguidancesregardingtheASTME1527standardwereASTME152797 andASTME152700. Residentialpropertypurchasersneedonlyconductasiteinspectionandchainoftitlesurvey.

Triggeringactions
[7] http://en.wikipedia.org/wiki/Phase_I_environmental_site_assessment

Avarietyofactions cancauseaPhaseIstudytobeperformedforacommercialproperty,themost

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Avarietyofactions[7]cancauseaPhaseIstudytobeperformedforacommercialproperty,themost commonbeing: Purchaseofrealpropertybyapersonorentitynotpreviouslyontitle. Contemplationbyanewlendertoprovidealoanonthesubjectrealestate. Partnershipbuyoutorprincipalredistributionofownership. Applicationtoapublicagencyforchangeofuseorotherdiscretionarylandusepermit. Existingpropertyownersdesiretounderstandtoxichistoryoftheproperty. Compulsionbyaregulatoryagencywhosuspectstoxicconditionsonthesite. Divestitureofproperties

Scope
Scrutinyofthelandincludesexaminationofpotentialsoilcontamination,groundwaterquality,surfacewater qualityandsometimesissuesrelatedtohazardoussubstanceuptakebybiota.Theexaminationofasitemay include:definitionofanychemicalresidueswithinstructuresidentificationofpossibleasbestoscontaining buildingmaterialsinventoryofhazardoussubstancesstoredorusedonsiteassessmentofmoldandmildew andevaluationofotherindoorairqualityparameters.[8] Dependinguponpreciseprotocolsutilized,thereareanumberof variationsinthescopeofaPhaseIstudy.Thetaskslistedhereare commontoalmostallPhaseIESAs:[9] Performanceofanonsitevisittoviewpresentconditions (chemicalspillresidue,diebackofvegetation,etc.)hazardous substancesorpetroleumproductsusage(presenceofabove groundorundergroundstoragetanks,storageofacids,etc.)and evaluateanylikelyenvironmentallyhazardoussitehistory. Asbestoscontainingmaterialsare Evaluationofrisksofneighboringpropertiesuponthesubject nottypicallysurveyedorsampled property inaPhaseIsiteinspection,but ReviewofFederal,State,LocalandTribalRecordsoutto suspectbuildingmaterialsmaybe distancesspecifiedbytheASTM1528andAAIStandards noted (rangingfrom1/8to1miledependingonthedatabase) Interviewofpersonsknowledgeableregardingthepropertyhistory (pastowners,presentowner,keysitemanager,presenttenants,neighbors). Examinemunicipalorcountyplanningfilestocheckpriorlandusageandpermitsgranted Conductfilesearcheswithpublicagencies(Statewaterboard,firedepartment,countyhealth department,etc.)havingoversightrelativetowaterqualityandsoilcontaminationissues. Examinehistoricaerialphotographyofthevicinity. ExaminecurrentUSGSmapstoscrutinizedrainagepatternsandtopography. ExaminechainoftitleforEnvironmentalLiensand/orActivityandLandUseLimitations(AULs). Inmostcases,thepublicfilesearches,historicalresearchandchainoftitleexaminationsareoutsourcedto informationservicesthatspecializeinsuchactivities.NonScopeItemsinaPhaseIEnvironmentalSite Assessmentscanincludevisualinspectionsorrecordsreviewsearchesfor:
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AsbestosContainingBuildingMaterials(ACBM) LeadBasedPaint LeadinDrinkingWater Mold Radon Wetlands ThreatenedandEndangeredSpecies Mercurypoisoning Debrisblow EarthquakeHazard Vaporintrusion

Preparers
OftenamultidisciplinaryapproachistakenincompilingallthecomponentsofaPhaseIstudy,sinceskillsin chemistry,atmosphericphysics,geology,microbiologyandevenbotanyarefrequentlyrequired.Manyofthe preparersareenvironmentalscientistswhohavebeentrainedtointegratethesediversedisciplines.Many stateshaveprofessionalregistrationswhichareapplicabletothepreparersofPhaseIESAsforexample,the stateofCaliforniahadaregistrationentitled"CaliforniaRegisteredEnvironmentalAssessorClassIorClass II"[1](http://www.dtsc.ca.gov/REA/). UnderASTME152705parametersweresetforthastowhoisqualifiedtoperformPhaseIESAs.Thenew parameterdefinedanEnvironmentalProfessionalassomeonewith 1. acurrentProfessionalEngineer'sorProfessionalGeologist'slicenseorregistrationfromastateorU.S. territorywith3yearsequivalentfulltimeexperience 2. haveaBaccalaureateorhigherdegreefromanaccreditedinstitutionofhighereducationinadiscipline ofengineeringorscienceand5yearsequivalentfulltimeexperienceor 3. havetheequivalentof10yearsfulltimeexperience. ApersonnotmeetingoneormoreofthosequalificationsmayassistintheconductofaPhaseIESAifthe individualisunderthesupervisionorresponsiblechargeofapersonmeetingthedefinitionofan EnvironmentalProfessionalwhenconcludingsuchactivities. Mostsiteassessmentsareconductedbyprivatecompaniesindependentoftheownerorpotentialpurchaserof theland.

Examples
WhiletherearemyriadsitesthathavebeenanalyzedtodatewithintheUnitedStates,thefollowinglistwill serveasexamplesofthesubjectmatter: AukeBayU.S.PostalFacility,Juneau,Alaska EssoCanadaLtd.FormerBulkFuelsFacility,OwenSound,Ontario,Canada DakinBuilding,Brisbane,California EastElkGroveSpecificPlan,ElkGrove,California
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MarinersMarshPark,StatenIsland,NewYork RichmondStateHospitalFarmIndustrialPark,WayneCounty,Indiana SydneySteelPlantLands,Sydney,NovaScotia WeyerhauserTechnologyCenter,FederalWay,Washington

Internationalcontext
InJapan,withthepassageofthe2003SoilContaminationCountermeasuresLaw,thereisastrongmovement toconductPhaseIstudiesmoreroutinely.AtleastonejurisdictioninCanada(Ontario)nowrequiresthe completionofaPhaseIpriortothetransferofsometypesofindustrialproperties.SomepartsofEurope begantoconductPhaseIstudiesonselectedpropertiesinthe1990s,butstilllackthecomprehensiveattention giventovirtuallyallmajorrealestatetransactionsintheUSA. IntheUnitedKingdomcontaminatedlandregulationisoutlinedintheEnvironmentAct1995.The EnvironmentAgencyofEnglandandWaleshaveproducedasetofguidanceCLEAastandardized approachtotheassessmentoflandcontamination.APhase1DesktopStudyisoftenrequiredinsupportofa planningapplication.[10]IntheUKthesereportmustbeassembledbya"competentperson".

Otherreporttypes
Thereareseveralotherreporttypesthathavesomeresemblancein nameordegreeofdetailtothePhaseIEnvironmentalSite Assessment: PhaseIIEnvironmentalSiteAssessmentisan"intrusive" investigationwhichcollectsoriginalsamplesofsoil,groundwateror buildingmaterialstoanalyzeforquantitativevaluesofvarious contaminants.[11]Thisinvestigationisnormallyundertakenwhena PhaseIESAdeterminesalikelihoodofsitecontamination.Themost frequentsubstancestestedarepetroleumhydrocarbons,heavymetals, pesticides,solvents,asbestosandmold.

Storageandhandlingoftoxicsis assessedforeachsitewithinaPhaseI study.

PhaseIIIEnvironmentalSiteAssessmentisaninvestigation involvingremediationofasite.PhaseIIIinvestigationsaimtodelineatethephysicalextentofcontamination basedonrecommendationsmadeinPhaseIIassessments.PhaseIIIinvestigationsmayinvolveintensive testing,sampling,andmonitoring,fateandtransportstudiesandothermodeling,andthedesignof feasibilitystudiesforremediationandremedialplans.Thisstudynormallyinvolvesassessmentofalternative cleanupmethods,costsandlogistics.Theassociatedreportagedetailsthestepstakentoperformsitecleanup andthefollowupmonitoringforresidualcontaminants. LimitedPhaseIEnvironmentalSiteAssessmentisatruncatedPhaseIESA,normallyomittingoneor moreworksegmentssuchasthesitevisitorcertainofthefilesearches.Whenthefieldvisitcomponentis deletedthestudyissometimescalledaTransactionScreen. EnvironmentalAssessmenthaslittletodowiththesubjectofhazardoussubstanceliability,butratherisa studypreliminarytoanEnvironmentalImpactStatement,whichidentifiesenvironmentalimpactsofaland developmentactionandanalyzesabroadsetofparametersincludingbiodiversity,environmentalnoise,water
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pollution,airpollution,traffic,geotechnicalrisks,visualimpacts,publicsafetyissuesandalsohazardous substanceissues. SBAPhaseIEnvironmentalSiteAssessmentmeansallpropertiespurchasedthroughtheUnitedStates SmallBusinessAdministration's504FixedAssetFinancingProgramrequirespecificandoftenhigherdue diligencerequirementsthanregularRealEstatetransactions.Duediligencerequirementsaredetermined accordingtotheNAICScodesassociatedwiththepriorbusinessuseoftheproperty.Thereare58specific NAICScodesthatrequirePhaseIInvestigations.Theseinclude,butarenotlimitedto:FuneralHomes,Dry Cleaners,andGasStations.TheSBAalsorequiresPhaseIIEnvironmentalSiteAssessmenttobeperformed onanyGasStationthathasbeeninoperationformorethan5years.Theadditionalcosttoperformthis assessmentcannotbeincludedintheamountrequestedintheloanandaddssignificantcoststotheborrower. FreddieMac/FannieMaePhaseIEnvironmentalSiteAssessments[2] (http://www.partneresi.com/news/Gell_Fannie_Freddie_Due_Diligence_Article_Scotsman_Guide_4_09.pdf) aretwospecializedtypesofPhaseIESAsthatarerequiredwhenaloanisfinancedthroughFreddieMacor FannieMae.ThescopesofworkarebasedontheASTME152705Standardbuthavespecificrequirements includingthefollowing:thepercentandscopeofthepropertyinspectionrequirementsforradontesting asbestosandleadbasedpainttestingandoperationsandmaintenance(O&M)planstomanagethehazardsin placeleadindrinkingwaterandmoldinspection.Forcondominiums,FannieMaerequiresaPhaseIESA anytimetheinitialunderwritinganalysisindicatesenvironmentalconcerns.[12] HUDPhaseIEnvironmentalSiteAssessmentTheU.S.DepartmentofHousingandUrbanDevelopment alsorequiresaPhaseIESAforanycondominiumunderconstructionthatwishestoofferanFHAinsured loantopotentialbuyers.[13]

Seealso
Environmentalremediation Environmentalscientist CertifiedHazardousMaterialsManager InstituteofEnvironmentalManagementandAssessment

References
1. ^ EPAStandardsandPracticesforAllAppropriateInquiriesFinalRule (http://epa.gov/brownfields/aai/aai_final_rule.pdf) 2. ^ "ASTMStandardE152705forPhaseIESAs"(http://www.astm.org/Standards/E1527.htm). 3. ^ "ASTMStandardE1903forPhaseIIESAs"(http://www.astm.org/Standards/E1903.htm). 4. ^ QualityAssuranceAndQualityControlForWasteContainmentFacilities 5. ^ SuperfundCleanupAccelerationActof1998 ,U.S.Congress,March26,1998 6. ^ EPAStandardsandPracticesforAllAppropriateInquiriesFinalRule (http://epa.gov/brownfields/aai/aai_final_rule.pdf) 7. ^ ThomasMMissimerandMissimerMMissimer,ALender'sGuidetoEnvironmentalLiabilityManagementCRCPress (1996) 8. ^ SaraNMartin,SiteAssessmentandRemediationHandbook,CRCPress(2003) 9. ^ "ComponentsofaPhaseIEnvironmentalSiteAssessment"(http://apexenviro.com/faq.html#1). 10. ^ DesktopStudyReports(Phase1)(http://southwestenvironmental.co.uk/Deskto%20Study_copy(1).html) 11. ^ EnvironmentalAspectsofRealEstateandCommercialTransactions:FromBrownfieldstoGreenBuildings,American BarAssociation,ed.byJamesB.Witkin(2002)
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12. ^ "PhaseIEnvironmentalSiteAssessments"(http://strategicinspections.com/services/phaseienvironmentalsite assessmentsesas/). 13. ^ "PhaseIEnvironmentalSiteAssessments"(http://strategicinspections.com/services/phaseienvironmentalsite assessmentsesas/).

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