Knowing the Difference between Phase I And Phase II Environmental Site Assessments

Knowing the Difference between Phase I And Phase II Environmental Site Assessments

Environmental site assessment phases, as we all know, are commonly used terms for a real estate holding that classifies probable or existent environmental contamination liabilities. Addressing both the underlying land as well as physical improvements to the property, both phase I environmental assessment and phase II environmental assessment hold high importance.

Here, in this blog, we would like to highlight the prime differences between Phase I And Phase II Environmental Site Assessments.
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Performing environmental site assessments is an essential part of due diligence as most of the time, questions regarding legal responsibility related to environmental concerns are increasing. The best part is that it helps to prevent damage to property transactions by providing both buyers and vendors with information about potential environmental hazards.

  • The Phase I assessment works on framing complete details like documenting and checking with the property owners and others to compile information. Phase II assessments go in-depth, which includes even analyzing soil and water samples.
  • Phase I Environmental Assessment was referred by CERCLA for determining liabilities for environmental contamination of real estate properties. This assessment can identify hazardous substances and highlight issues to landowners and genuine prospective purchasers and exempt them from liability. As per the Phase I ESA report, a Phase II ESA may be recommended by the evaluator, and they may conduct lab tests.
  • Once phase one environmental site assessments ascertain a potential contamination risk that requires much more investigation, evaluators perform a Phase II Environmental Site Assessment Report. The Phase II ESA will confirm the presence of hazardous materials on the property, helping protect a potential buyer, lender, investor, or another interested party on the transaction from environmental liability.
  • Another difference is Phase II assessments are unquestionably more intrusive than Phase I. In Phase I ESA, evaluators records things like deeds, aerial photographs, surveys, maps, and other essential documents and even examine records of other nearby properties. While Phase II assessment will assess more things like subsurface soil borings, groundwater monitoring well installation, drum sampling, sampling of dry wells, floor drains and catch basins, transformer/capacitor sampling for Polychlorinated Biphenyls (PCBs), testing of underground storage tanks and much more.
  • Some more benefits are – say if a Phase I determine if a vapor encroachment condition is likely to exist at the subject property, the Phase II will further highlight potential remedial actions that may be required to clean up the property.

Our take – In light of what experts suggest, the land buyers have many alternatives. They can take a final call on remediating the property for the deal, finalize the costing or buy the property and start remediation all alone. The dealers might need to revalue the worth of the property through the ESA report if required.

For environmental site assessment, you can connect with us at Fulcrum. We can give provide expert assessments in both the phases tailored to clients’ specific needs. Both Phases I and Phase II environmental assessment is performed by our trained and experienced environmental professionals frequently throughout the country. We have an edge from our competitors as our Environmental Professionals are more acquainted with local geography and local regulatory authority. We would be happy to assist you!

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