A phase I site assessment, generally known as EES, or phase I, phase I, is conducted to discover the current and historical uses of a property as part of a commercial real estate transaction. The intent of the report is to assess whether current or historical uses of the property have had an impact on the soil or groundwater below the property and could pose a threat to the environment and / or human health. If these problems are discovered, this represents a possible liability to the lender and / or owner, as well as the value of the property. A Phase I SEA completed prior to the closing of a real estate transaction may be used to comply with CERCLA's (Comprehensive Environmental Response, Compensation and Environmental Responsibility) innocent landlord defense requirements under All Appropriate Investigations (AAI)
Phase I site evaluation reports can be written for all types of properties, including vacant lots, agriculture, residential, commercial, and multi-family industrial uses; however, all ESA Phase I reports have been completed to comply with ASTM E1527-13 (exceptions are made for properties comprising large and mostly undeveloped land, which are searchable in the standard ASTM E2247-16).
A Phase I SEA generally includes the following:
• A site visit to observe current and past conditions and the uses of the property and adjacent properties;
• Analysis of federal, state, tribal and local regulatory databases, including, but not limited to, underground storage tanks (UST), aboveground storage tanks (AST), known or suspected cases disposal, storage of hazardous substances and elimination of hazardous substances. waste, including petroleum products, and institutional and technical controls;
• A review of historical documents, such as historical aerial photographs, fire insurance cards (Sanborn cards), directories of historic cities and historical topographic maps;
• A review of the records of state and local agencies, including, but not limited to, state environmental agencies, construction services, fire departments and health services.
• Interviews with current and previous owners, operators and occupants, or other people familiar with the property.
• Interviews with the user of the report to obtain titles or court records of charges and environmental activities and limits of use (AUL); specialized knowledge or experience; real knowledge; commonly known or reasonably verifiable information; the reason for a significantly lower purchase price; and the reason for the preparation of phase I of the ESA. It is the responsibility of the User to provide this information in order to be able to defend the innocent owner.
• Analysis of federal, state, tribal and local regulatory databases, including, but not limited to, underground storage tanks (UST), aboveground storage tanks (AST), known or suspected cases disposal, storage of hazardous substances and elimination of hazardous substances. waste, including petroleum products, and institutional and technical controls;
• A review of historical documents, such as historical aerial photographs, fire insurance cards (Sanborn cards), directories of historic cities and historical topographic maps;
• A review of the records of state and local agencies, including, but not limited to, state environmental agencies, construction services, fire departments and health services.
• Interviews with current and previous owners, operators and occupants, or other people familiar with the property.
• Interviews with the user of the report to obtain titles or court records of charges and environmental activities and limits of use (AUL); specialized knowledge or experience; real knowledge; commonly known or reasonably verifiable information; the reason for a significantly lower purchase price; and the reason for the preparation of phase I of the ESA. It is the responsibility of the User to provide this information in order to be able to defend the innocent owner.
The Environmental Professional (PE) evaluates this investigation to identify potential environmental risks to the property, such as current or historical operations known to or suspected of having used hazardous substances or petroleum products during on-site operations. Some very common uses are: dry cleaners, service stations, car and vehicle repair, printing and manufacturing. In addition to possible contamination of soil and groundwater, ASTM E1527-13 addresses the concerns associated with contamination of soil vapors and the risk that vapor migration poses a threat to tenants on and off site.
Although not part of ASTM requirements, ESA Phase I reports generally include a discussion of materials suspected of containing asbestos (ACM), potential lead-based paint (LBP), and fungal growth; as well as the potential of lead in drinking water and radon. Sampling for these non-ASTM concerns is beyond the scope of a standard Phase I SEA, but may be included on request.
ASTM E1527-13 provides guidelines for an ESA Phase I report to meet industry standards, but there are other factors to consider when requesting a report. Projects associated with Fannie Mae, Freddie Mac, the United States Department of Housing and Urban Development (HUD), and the Small Business Association (SBA) have their own reporting requirements. This also applies to other credit institutions.
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