Environmental Phase 1
Intern Insight

What is an Environmental Phase 1?
An Environmental Phase 1, also known as an Environmental Site Assessment (ESA or Phase 1 ESA), is the process of determining the environmental condition of a property. The main objective of an ESA is to research a site's current and historical background to determine potential groundwater and soil risks or contamination that could harm the environment or people. If hazards are found, the owner of the property can be liable. Various properties can undergo ESA inspections, such as commercial, agricultural, vacant land, industrial, and residential.The assessment can involve discussions regarding lead-based paint, asbestos, mold growth, and lead in drinking water if the client requests it. ASTM E1527-13 implements the guidelines for the ESA Phase 1, while specific properties, like a Small Business Enterprise, may have different requirements than other types of properties.
What does an Environmental Phase 1 Encompass?
- A site inspection which researches and examines the property and adjacent properties to determine possible environmental hazards
- A full analysis of federal, state, tribal, and local regulatory databases relating to above and underground storage tanks, suspected release cases, storage of hazardous substances, disposal of hazardous waste, and institutional and engineering controls
- Research on historical records of aerial photographs, fire insurance maps, historical city directories, and historical topographic maps
- Research of state and local environmental agencies, Building Departments, Fire Departments, and Health Departments
- Interview with current and past property owners
Some Common Sites that Cause Concerns:
- Dry Cleaners
- Gas Stations
- Auto/Vehicle Repair
- Printing Operations
- Manufacturing
Why is it important?
Receiving an Environmental Phase 1 assessment is vital for liability protection enforced by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). In 1980 the judicial decision of the CERCLA enacted a stricter liability towards owners with environmental hazards. The GlobeST has a useful checklist for businesses to analyze and determine if an Environmental Phase 1 is essential/needed for them.
- Is CERCLA liability protection important to you? If yes, then only a Phase 1 will do.
- Property type
- If it is an industrial property or another high risk type property, a Phase 1 ESA is advisable.
- If it is an office building, apartment complex or other low risk property type, limited environmental due diligence could be considered.
- If it is vacant land that has never been developed, limited environmental due diligence could be considered.
- Property location (remember you are not only looking at your property during the environmental assessment, but also surrounding properties and how they might have an effect on your property.
- If the property is in an urban, highly developed area that has been so for a long time, a Phase 1 ESA is advisable.
- If the property is in a mostly undeveloped area, limited environmental due diligence could be considered.
- What does your lender require? This might be the most important question of all. Many lenders have their own scopes of work that they require depending on the loan type (for instance Fannie Mae, Freddie Mac , or HUD loans all have their own requirements for due diligence), property type or other risk factors.
What Happens After an Environmental Phase 1 is Complete?
After the necessary steps are complete for the ESA, the Environmental Professional will summarize all concerns and the additional steps needed to resolve the environmental issues. If the recognized environmental condition (REC) indicates a problem, then an Environmental Phase 2 will be conducted. That will entail acquiring soil, groundwater, or soil vapor samples to be analyzed.
Environmental Phase 1 vs. Environmental Phase 2
Environmental Phase 2 consists of soil and water sampling for potential contamination. With the lab results, they can compare them with the state and federal regulatory guidelines. If necessary, there may be an inspection for mold, radon, and lead paint. It also has the potential to include the identification of wetlands, ecological resources, or endangered species that can cause environmental harm. The main difference between a Phase 1 and Phase 2 assessment is their goal. An ESA Phase 1's goal is to assess the likelihood that the property is contaminated, while the ESA Phase 2 evaluates the presence of environmental contaminants.
Real World Story
Camp Parks- Dublin, CA
Camp Parks is a Global Support Training Center for the Army. An Environmental Site Assessment was conducted at Camp Parks, which determined that there was a potential environmental hazard. The Environmental Professionals inspected further and concluded that the underground and above ground tanks were hazardous to the soil and groundwater. They were then required to conduct extensive remediation for this issue to be resolved. This is a reason why the Environmental Phase 1 is important, to clean up contamination and keep our planet healthy.

Citations
https://www.partneresi.com/resources/blog/what-is-a-phase-i-environmental-site-assessment
https://www.geoforward.com/phase-1-environmental-site-assessment/
https://www.pmenv.com/services/phase-i-environmental-site-assessments
https://www.gleassociates.com/phase-i-versus-phase-ii-environmental-site-assessments/

A Superfund site is
an area designated by the United States Environmental Protection Agency (EPA) that
have been classified as being heavily contaminated with hazardous substances. These
substances may include chemicals, pollutants, or other toxic materials that
could have a significant risk to human health and the environment.
How Superfund site was created
According to the Environmental Protection Agency (EPA), "In the late 1970s, toxic waste dumps, such as Love Canal and Valley of the Drums, received national attention when the public learned about the human health and environmental risks posed by the contaminated sites. In response, Congress established the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in 1980." This law was created to enforce the responsibility of parties involved in contamination to clean up the sites or compensate the government for EPA's cleanup efforts. In cases where no responsible party is identified for the cleanup or reimbursement, the EPA assumes responsibility for cleaning up the contaminated area. The CERCLA act is commonly referred to as a Superfund Site.
CERCLA Act
According to the EPA “The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund, was enacted by Congress on December 11, 1980. This law created a tax on the chemical and petroleum industries and provided broad Federal authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment. Over five years, $1.6 billion was collected and the tax went to a trust fund for cleaning up abandoned or uncontrolled hazardous waste sites."
The purpose of CERCLA
According to the EPA: The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA):
· established prohibitions and requirements concerning closed and abandoned hazardous waste sites;
· provided for liability of persons responsible for releases of hazardous waste at these sites; and
· established a trust fund to provide for cleanup when no responsible party could be identified.
How Superfund site are chosen
According to the EPA, sites are chosen by “Using Hazard Ranking System (HRS) criteria, EPA, its state and tribal partners, or the appropriate federal department or agency then conduct a preliminary assessment and, if warranted, a site inspection or other more in-depth assessment.” Sites that have a HRS score below 28.50 do not qualify for the National Priorities List (NPL) and are assigned to a No Further Remedial Action Planned (NFRAP) decision.
CTI offers safety consulting and the cleanup of sites and contaminated locations. If you have questions or comments, call CTI at 562.608.8401 or email info@ctienviro.com.
Citations:
References available, upon request please contact us.







