We've all said these five little words at some point in our lives...maybe not recently, maybe not even since we were five years old.
But when a client asks, "But do I HAVE to do a Phase 1 Environmental Assessment?" My answer is always the same..."You don't HAVE to do one, but you don't HAVEto wear a parachute when you jump out of an airplane either."
Although they are not legally required, Phase 1 Site Assessments protect your liability as a potential purchaser. See some of my past posts for applicable liability protections. But keep in mind that if you choose to jump without a parachute you assume all the risk and responsibility for that choice.
With the first half of 2010 officially behind us, we are forced to look ahead. While transactions in the commercial real estate are still seemingly depressed and lenders are still looking at the future with "cautious optimism," people should still understand their environmental due diligence during the limited number of transactions taking place. Now more than ever, the Phase One Environmental Site Assessment is a must!
Until someone invents a money tree...Investors and loan officers should be looking at a property from all angles in order to protect themselves. From appraisals to Phase 1 Environmental Assessments; Property Condition Assessments to land surveys...Valuing a property from every direction is growing ever more important in order to get the most "bang for your buck" during a property transaction!
Environmental Tenant Assessments - Take Control of Your LiabilityThursday, July 8th, 2010 - 10:00 am EST Owning a commercial or industrial building can present unexpected environmental liabilities. A property owner is ultimately responsible for the environmental condition of the property which includes contamination caused by past or current tenants. Most of these environmental concerns and potential liabilities are unknown until a Phase I Environmental Site Assessment (ESA) is performed. Unfortunately, a Phase I ESA is typically driven by a property transaction and not by an expired lease. An Environmental Tenant Assessment can provide some valuable information and puts the control of environmental liability back into the property owner’s hands.
EPA Issues Final Mandatory Reporting of Greenhouse Gases Rule
Tuesday, July 13, 2010 - 10:00 am EST On October 30, 2009, the Environmental Protection Agency (EPA) published the Final Mandatory Reporting of Greenhouse Gases (GHG) Rule in the Federal Register. The EPA has developed this rule in accordance with the FY2008 Consolidated Appropriations Act in an effort to obtain accurate and comprehensive data on GHG emissions. The EPA anticipates this new rule will apply to more than 10,000 facilities.
So...What's the Status of the Boiler MACT?Thursday, July 15, 2010 - 10:00 am ESTThe NESHAP for Industrial, Commercial and Institutional Boilers and Process Heaters, 40 CFR Part 63, Subpart DDDDD (the “Boiler MACT”) was vacated in June 2007. This web seminar will provide updated information on the status of EPA’s development of a revised Boiler MACT. Information will be provided on new requirements, compliance dates, submittal requirements, and deadlines. In addition, information regarding the development of any source-specific MACT standards by state regulatory agencies will be discussed.
Tuesday, July 20, 2010 - 10:00 am EST
The Michigan Legislature along with the Michigan Department of Natural Resources and Environment (MDNRE) have drafted legislation for consideration to amend Michigan's Superfund rules. Key points of change will be addressed.
Is OSHA Targeting Your Facility? Thursday, July 22, 2010 - 10:00 am EST
Are you one of the 15,000 facilities that OSHA has on their radar screen? What should you do if you are on this list? What you should really want to know is how to lower the chances of being on one of these lists in the future. Join us for this informative webinar to learn more.
Universal Waste: What is it and What are the Associated Rules? Thursday, July 29, 2010 - 10:00 am EST
Join us for this informative 30 minute webinar that explains what universal waste is and how to properly manage it. This often overlooked or neglected area of waste management can lead to regulatory violations if not properly managed. Make sure your facility is doing the right thing.
Owning a commercial or industrial building can present unexpected environmental liabilities. A property owner is ultimately responsible for the environmental condition of the property which includes contamination caused by past or current tenants. Most of these environmental concerns and potential liabilities are unknown until a Phase One Environmental Site Assessment is performed. Unfortunately, a Phase 1 Site Assessment is typically driven by a property transaction and not by an expired lease. That does not mean an evaluation of your tenant’s hazardous material handling practices cannot be performed. This can be done quickly and in a cost-effective manner by having an Environmental Tenant Assessment performed. This assessment can be performed prior to leasing a space to a tenant in order to evaluate the environmental risks associated with that tenant and their operations or towards the end of a lease term prior to the tenant vacating the premises to evaluate what environmental liabilities have been left behind. This will provide the valuable information you need to take control of your environmental liability.
To learn more about environmental tenant assessments, click here to read an article written by one of the environmental assessments consultants at August Mack Environmental.
So are they Phase 1 Environmental Assessments? Is it written Phase One Environmental Site Assessment? Phase I Environmental Site Assessment?...so many names for one little project...but they are so much more! Check out some of our frequently asked questions about Phase I ESAs (had to add one more in there) at
www.augustmack.com/Newsletter/2008/May/Article0089.html
All Appropriate Inquiry (AAI) is a Phase One Environmental Site Assessment that provides CERCLA liability protection. An AAI is a type of environmental due diligence that evaluates a property’s environmental conditions and determines potential liability for any contamination. The AAI Phase 1 Site Assessment is used to identify conditions indicative of releases and threatened releases of:
- Hazardous substances
- Pollutants and contaminants
- Petroleum or petroleum products
- Controlled substances
The AAI Phase 1 Environmental Assessment provides CERCLA Protection via:
- Innocent Landowner Defense, CERCLA § 107(b)(3)
- Bona Fide Prospective Purchaser Liability Protection, CERCLA § 107(r)
- Contiguous Property Owner Liability Protection, CERCLA § 107(q)
The six primary types of environmental site assessment reports are:
- Desktop Environmental Review - Record review only with no site visit
- ASTM E 1528-06 Transaction Screen - Site visit conducted by either environmental assessment consultant or user
- Phase 1 Site Assessment Update - Update prior Phase 1 Environmental Assessments with current government records data, historical data, interviews and site visits. This is most appropriate for Phase 1 Site Assessment that have exceeded their shelf life (180 days), but are less than one year old.
- ASTM E 1527-00 Phase One Environmental Site Assessment - Evaluates environmental risk, but does not offer liability protection.
- Business/Environmental Risk Phase One Environmental Site Assessment - Defined by the user of environmental assessment consultant. Includes non-scope items (asbestos, lead, mold, wetlands, etc.) to guide business decisions.
- ASTM E 1527 Phase One Environmental Site Assessment (All Appropriate Inquiry) - Provides CERCLA liability protection.
So I let my blog fall WAAAY behind, my apologies. Time can totally get away from you if you let it, I guess.
Stay tuned, I will try to be more diligent and get some good entries posted about Phase 1 Environmental Assessments (and other non-scope considerations), environmental due diligence, environmental assessment and remediation!
In the meantime, check out this article on the increase in Phase One Environmental Site Assessment activity:
www.elabs7.com/functions/message_view.html
August Mack was retained by a bank to conduct a Phase I Environmental Site Assessment at a former facility located in Indianapolis, Indiana. The assessment was performed in accordance with ASTM Standard E-1527-97. The scope of the Phase I Environmental Site Assessment involved performing a site history review, conducting a site inspection, interviewing individuals familiar with the site and reviewing regulatory agency files relating to the site. Site history research involved obtaining and reviewing title records for the property, land use maps and available historical aerial photographs. A site inspection was conducted to obtain information regarding current land use and improvements. The site also was inspected for chemical and raw material usage, the presence of hazardous and solid wastes, underground and aboveground storage tanks, hydraulic lifts, potential polychlorinated biphenyl (PCB) and asbestos containing materials, water discharges, waste disposal, site drainage and utilities as well as any other areas of potential environmental concern. It was determined that a dry-cleaning operations was previously located at the target property location. August Mack was then contracted to perform a site investigation at the location to determine if subsurface soil and groundwater had been impacted by former dry-cleaning operations.
August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit www.augustmack.com or call 800.579.0770.
August Mack is committed to providing quality, responsive services to developers, architects, engineers, real estate firms, attorneys and financial institutions throughout the United States. As a solution-orientated firm, August Mack understands the needs of clients and recognizes the importance of getting the deal done in an environmentally-acceptable manner. Our 20 years of experience coupled with our innovative approach provides us with the opportunity to help clients achieve both their internal goals as well as meet their project deadlines.
Our staff’s comprehensive experience includes completing Phase I Environmental Site Assessments, Baseline Environmental Assessments, subsurface investigations and remediation for a variety of commercial, industrial, agricultural and vacant properties. We also are skilled in ALTA/ACSM land surveys, ASTM Property Condition Assessments as well as asbestos, mold and lead-based paint surveys and abatement.
Our Environmental Due Diligence and Risk Management services include:
- Phase I Site Assessment
- Indoor Air Quality Study
- Asbestos Survey and Abatement
- Wetlands
- Baseline Environmental Assessment
- Mold Survey and Remediation
- Transaction Screening Process
- Lead Paint Survey and Abatement
- Property Condition Assessment
- Geophysical Survey
- Well Installation
August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit www.augustmack.com or call 800.579.0770.
August Mack has a recorded webinar available on Phase One Environmental Site Assessments (ESA). It is very important, and most times required by lenders, to have a Phase One Environmental Site Assessment performed prior to a property transaction. The purpose of an ESA is to identify environmental risks associated with the property and to protect against liability related to existing site conditions. However, there are a number of environmental considerations that are outside the scope of a Phase 1 Site Assessment; commonly referred within an ESA as Non-Scope Considerations. These additional considerations discussed during this webinar can help identify business risk and potential financial burdens prior to completing a transaction.
Click here to view the recorded webinar on Phase One Environmental Site Assessments presented by one of August Mack's environmental due diligence technical experts.
August Mack was awarded 100 new projects in February. So you might ask, what types of projects are you doing? Here is a sampling of the types of projects that our clients awarded us recently:
- Air Permitting
- Phase 1 Site Assessments
- Tier II Reporting
- Groundwater Sampling
- Industrial Hygiene Sampling
- Permit Review
August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit
www.augustmack.com or call 800.579.0770.
It is very important, and most times required, by lenders to have a Phase I Environmental Site Assessment (ESA) performed prior to a property transaction. The purpose of an ESA is to identify environmental risks associated with the property and to protect against liability related to existing site conditions. However, there are a number of environmental considerations which are outside the scope of a Phase I ESA; commonly referred to within an ESA as “non-scope considerations.” These additional considerations help identify business risks and potential financial burdens prior to completing a transaction.
To learn more about Phase I ESAs and non-scope considerations, click here to read an article by one of August Mack's technical experts.
August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit www.augustmack.com or call 800.579.0770.
When completing an All Appropriate Inquiry Phase One Environmental Site Assessment, a client may request services that are outside of scope of the AAI Standard (ASTM 1527-05). The following are "non-scope considerations" that a buyer might want to assess or evaluate in connection with commercial real estate:
- Asbestos-containing Building Materials
- Radon
- Lead-based Paint
- Lead in Drinking Water
- Wetlands
- Regulatory compliance*
- Industrial hygiene
- Indoor Air Quality
- Biological agents
- Mold
- Environmental Health and Safety*
- cultural and historic resources
- Ecological resources
- Endangered species
I hope when you hear these words and phrases you think of August Mack Environmental:
- Environmental Compliance Solutions
- Environmental Assessment and Remediation
- Environmental Health and Safety Plan
- Environmental Remediation Consulting
- Phase 1 Environmental Assessments
- And the list goes on.........
Call Tom Anderson at 317.916.3105 with questions.
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