When purchasing a property, upgrading an existing facility, or selling an asset, evaluating the potential risks and the environmental issues is critical. Phase I Environmental Site Assessments (ESAs) should be an essential step in acquiring commercial or industrial property.
Phase I Environmental Site Assessments are the introductory phase of investigating if there is a potential for environmental risk or contamination on a property that could affect its value. In addition, the Phase I determines if additional investigation and testing are necessary.
Performance completes comprehensive ESAs in accordance with the Environmental Protection Agency Standards and Practices for All Appropriate Inquiries (AAI) located at 40 CFR Part 312, and guidelines established by the American Society for Testing and Materials (ASTM) in the Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process (ASTM Standard Practice E 1527-05/13) for real estate transactions, property development, bank financing, refinancing and foreclosures, and other in-house proactive audit programs.
Performance works directly with lenders, brokers, owners, and asset managers to provide practical, objective evaluations and opinions — remaining sensitive to our client’s specific needs and objectives. Whether the project involves a securitization, new loan, refinance or foreclosure, we can provide guidance every step of the way.
A Phase II Environmental Site Assessment is performed either in support of a financing decision or to meet the requirements of a state agency such as the Michigan Department of Environment, Great Lakes and Energy (EGLE). Most of our reports are presented in a manner to meet the standards set by ASTM E1903-97(2002).
Typically, a Phase II ESA is performed when the Phase I ESA identifies “Recognized Environmental Conditions (RECs)” and/or recommends further investigation. Unlike the Phase I ESA AAI rule, the Phase II is not a rule; instead, it is a standard of practice for performing the assessment. The Phase II ESA is typically defined by the scope proposed by the Environmental Professional assigned to the project and accepted by the client. This allows the scope of work to be tailored to each individual site and situation. Normally, a Phase II ESA is a screening to determine if potential contamination and/or hazardous materials are present. The Phase II does not typically characterize contamination present, nor is it a feasibility study; however, it may be included as part of the Phase II ESA scope or it may be part of the screening recommendations.
Geophysical surveys are often included to help locate subsurface objects and/or identify suitable locations for soil borings and groundwater monitoring wells.