What is an Environmental Site Assessment?

Environmental Site Assessments (ESA) are performed to gather objective evidence regarding contamination on a property through research, inspection, sampling, etc.

ESA Shelf Life

The ASTM & AAI rules assign a six (6) month shelf life to an ESA site visit, interviews, and government records. Updates are required prior to 6 months if no material property changes have occurred since last ESA. AAI must be conducted or updated within one (1) year of the property acquisition date. If AAI are conducted more than 180 days prior to the acquisition date, certain AAI aspects must be updated.

PHASE I ESA

The Environmental Site Assessment (ESA) process begins with Phase I. Conditions may be found that may constitute the need for Phase II to evaluate the presence of contaminants.

Due Diligence

Environmental due diligence includes elements such as site reconnaissance, records, review, interviews, and documentation of recognized environmental conditions.

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All Appropriate Inquiries

"All appropriate inquiries" (AAI) is the process of evaluating a property's environmental conditions and assessing potential liability for any contamination, as defined by the EPA.

AAI Applicability

"All appropriate inquiries" rules are applicable to any party who may seek protection from CERCLA liability as an innocent landowner, a bona fide prospective purchaser, or a contiguous property owner. Prior to the date of property acquisition, AAI is required for CERCLA liability defense for commercial and even for residential properties. Brownfields funding also requires AAI.

CERCLA DEFENSE

Comprehensive Environmental Response Compensation & Liability Act (CERCLA) establishes federally regulated criteria for environmental liability defense.

Additional Inquiries

Additional inquiries that must be conducted by or for the prospective landowner or grantee include:

• Searches for environmental clean up liens
• assessments of any specialized knowledge or experience of prospective landowner (or grantee)
• an assessment of the relationship of the purchase price to the fair market value of the property, if not contaminated
• commonly known or reasonably ascertainable information

PHASE II ESA

Phase II of the ESA process is generally performed to assess recognized environmental conditions identified in the Phase I ESA. This may also be required to fill data gaps on the Phase I.