Basics of the Phase I Environmental Site Assessment Process - Team Beta

Introduction to Environmental Site Assessment (ESA)

Environmental Site Assessments (ESA) are very common practice within the environmental and real estate fields. ESAs are completed to identify existing and potential environmental concerns or issues to a piece of land or structure. The ESA usually includes a review and analysis of existing data and information concerning a property, as well as an update, review and analysis of any current information concerning the property in historical records of governmental regulatory agencies. Additionally, a site reconnaissance of the subject property is performed and interviews are conducted to determine the presence of any recognized environmental conditions or any contamination arising there from. Some examples of recognized environmental conditions include:

• Petroleum hydrocarbon contamination and unauthorized releases of fuel
• Polychlorinated Biphenyl (PCB) contamination
• Asbestos-containing material (ACM)
• Lead-based paint materials
• Visual evidence of diesel contamination on the soil surface
• Open well casing exposing groundwater to surface contamination
• Soil and ground water contamination due to historical land uses and business practices (i.e. metals, solvents, petroleum hydrocarbons, etc.) onsite and from adjacent properties
• Heavy chemical odors
• Large volumes of debris and stored items
• Pesticide/herbicide contamination due to historic agricultural use

A Phase I Environmental Site Assessment is crucial for establishing innocent landowner defense, contiguous property owner, or prospective purchaser limitations on CERCLA liability (Pichtel, 2008). ESAs are performed according to guidelines developed by the American Society for Testing and Materials (ASTM E 1527-00 and 1527-05). Other industry standards can be tailored to meet clients’ specific requirements (ASTM E 1527-05). ESAs also include a Phase II and Phase III depending on what environmental concerns are discovered during the first phase. Detailed site characterization and sampling are usually completed during Phase II. Sampling and analysis can confirm or deny any concerns raised in Phase I. A third phase, Phase III, is usually completed if there has been actual contamination discovered. The removal of environmental concerns and actual contamination are completed in Phase III. The Phase I ESA consists of many important steps. The physical setting of the property, geologic characteristics, site history, aerial photographs, fire insurance maps, historical records and documents of the property, site investigation, use of the property, prior use, present use, previous storage use, topography, vegetation, hydrogeologic characteristics, and hazardous materials investigation are all investigated and identified through the Phase I.

ESA is conducted in three Phases, PhaseI, PhaseII and Phase III. In this blog we are focusing Phase I of ESA study. Here is a point wise summary of what is included in a Phase I report of ESA.

• Historical Research :
  Historical aerial photographs
  Building permits and Planning records (Current and past both)
  Topographical maps
  Department of Oil and Gas maps
  Fire insurance maps
  TitleInformation
  Reverse street directories
• Geology and Hydrogeology:
  Geological settings
  Groundwater flow and depth
  Soil nature and type
• Regulatory Research:
  A review of city, state and federal agency records including but not limited to:
  Regional Water Quality Control Board
  Environmental Health Department
  Building/ Planning & Zoning Departments
  Air Pollution Control District
  Fire Department
  Public Works Department
• Onsite investigation:
  An onsite inspection
  Document any hazardous materials/ hazardous waste stored onsite or nearby
• Interviews and Document Review:
  Interview Site Tenants and Owners
  Interview State and Local Regulators
  A Review of Past Reports

Statutory Basis and Regulatory Summary

Liability for environmental contamination under federal Superfund law (CERCLA) has long been a big concern for anyone purchasing property, especially commercial and industrial.

In December 2002, congress passed H.R. 2869, the Small Business Liability Relief and Brownfields Revitalization Act (also known as the 2002 Brownfields Amendments to CERCLA). This act was signed into law by President Bush on January 11, 2002 as Public Law 107-118. This law clarified requirements for property purchasers who wish to qualify for protection against CERCLA liability under the following specific legal defenses:

• Contiguous property owner defense
• Innocent landowner defense
• Bona fide prospective purchaser defense

This law also directed the U.S. Environmental Protection Agency (EPA) to promulgate regulations to “establish standards and practices for the purpose of satisfying the requirement to carry out all appropriate inquiries”. (U.S. EPA, 2009d)

The U.S. EPA (2009a) published a final rule, Standards and Practices for All Appropriate Inquiries (40 CFR Part 312), in the Federal Register on November 1, 2005. This regulation took effect one year later. There are also two standards published by ASTM International that are currently recognized by the EPA as complying with 40 CFR 312:

• E1527-05 - Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process
• ASTM E2247-08 - Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland and Rural Property

Property purchasers must do the following to qualify for the above liability protections (U.S. EPA 2009b):

• Conduct or update an AAI assessment according to the requirements of 40 CFR 312 within one year (or within 180 days for some portions) before they purchase the property.
• Comply with any and all continuing obligations under CERCLA after taking ownership of the property (for example, release prevention and reporting, etc.).

Qualifications of Environmental Professionals performing ESAs

Environmental site assessments are standardized by the American Society for Testing and Materials number E1527-05. This ASTM has the purpose of defining “good commercial and customary practice in the United States of America for Conducting an environmental site assessment of a parcel of commercial real estate…” (ASTM E1527, 2005) ASTM E1527-05 has an embedded criteria for those performing an environmental site assessment; the Environmental Professional (EP). In the past, the EP was a person who possessed the training and ability to perform this task. (Nielsen and Neil, 1997) Currently, the EP is required a Professional Engineer or Professional Geologist license or registration and have the equivalent of four years of full-time relevant experience. Other qualifications include a Baccalaureate degree in any engineering or science field with five ears of full-time relevant experience or ten years of full time relevant experience. (ASTM E1527, 2005)

How to Conduct an ESA

Environmental Site Assessments (ESA) or Phase I’s are needed for a lot of different reasons, whether your in real estate, business, industry or environmental to outline the existing or potential environmental issues. Once decided that an ESA is needed the proper procedures and investigations need to be taken. The following procedures are the bare minimum for conducting an ESA but not limited to:

• Defining and outlining the area/property under investigation
• Have a survey map of coordinates and defined structures/utilities/hazards/streets/waterways etc located on property
• Investigate property history-utility history, libraries, topo maps, historians, owernerships, locals and city offices (blue stake, water, land and water, communications)

Once the full history investigation is complete, depending on how large of area/parcel, the consultant is ready to walk, rover, or drive the defined land area. Keep in mind the adjoining properties and what they consist of. The consultant will investigate the area with a knowledgeable surveyor and mark all utilities and object/obstructions on the site. Things to document (photograph) and map on the site:

• Bermed areas
• Erosion
• High and low areas-uphill/downhill
• Water ways, retention areas, streams
• Debris
• Wildlife (dead and alive)
• All structural and utility areas
• All roadways and trails
• Any chemical spills or canisters
• Document all the things you smell and hear
• Agriculture and distinctive plant life
• Define ground and soil, whether it be native or non native
• Samples of all structures, questionable liquids and soils

Depending on what your findings are, outline the environmental issues both existing and potential in a finding/photo documented report with the surveyor’s maps of the site. Be sure to include the adjoining areas existing and potential issues on your site. Remember that this report needs to have supportive evidence for the existing conditions and supportive theory for the potential conditions. If you sent any materials/samples to the lab, be sure to include photographs and full lab analysis. Have an area in the report that a Certified Environmental Professional has included his/her findings, conclusions and remedies.


User Provided Information, Records Review, and Documentation Gaps

As per ASTM E1527-05 the future or current land owner, user, must provide “sufficient documentation of all sources, records, and resources” about the history, usage and all information about the site that could lead to the occurrence of a potential hazardous material on the site (ASTM, 2005). The EPA’s Final AAI Standard has set standards governing the use of gathered information from users (EPA, 2005). To fulfill ASTM and AAI standards the environmental professional is able to access the user provided information to research the activities on the site. The information may include judicial records, environmental liens, specific knowledge of site use provided through interviews with users and neighbors, and federal and state databases (ODEQ, 2006; EPA 2005). Through the evaluation process the environmental professional may encounter information gaps where documentation is not available to describe the history and usage of a site (EPA, 2005). At these occurrences the environmental professional is required to document sources of last information and comment on the consequence of the gap (EPA, 2005). With this information the environmental professional is able to evaluate the information in addition to site visits and other obtained information in a written report (ASTM, 2005; EPA 2005).

Site Reconnaissance

The site investigation or Site Reconnaissance is a very important part of the Phase I ESA. Site hazards can be identified and documented. The current use of the site and potential previous use or previous contamination can be viewed firsthand during the visit. A thorough walk through can help identify potential concerns such as chemical or petroleum storage tanks or drums, above ground and below ground tanks, emission stacks, emission controls, visible soil staining or contamination, drains and sumps, retention basins, ground level depressions, electrical equipment and transformers potentially containing pcb’s, and the presence of potential asbestos or lead paint containing building materials. Lead based paint use prior to 1980 was very common and can be a serious concern. Asbestos use in building materials is also a serious and common environmental concern. A few other items to watch for during the reconnaissance are other properties and facilities within the neighborhood. Nearby properties can be the source of other environmental concerns (Pichtel, 2000). Personnel interviews can also be completed during the site recon. A thorough site map should also be completed during the site visit.

Interviews

Environmental Site Assessments should include interviews with current or previous personnel who are familiar with the site being investigated. Personnel can include current and previous property owners, facility manager(s), manager of operations, and employees. If necessary, neighbors and/or local, state and federal governments can be interviewed. Conducting the interview can be in person, by telephone, or by mail. The interview report should include the site name, site address, who is conducting the interview, who is being interviewed, date and a series of questions related to the site being investigated. The interviewing process should include questions related to activities performed on-site, such as, manufacturing methods, chemical(s) used, distributed and disposal methods, permitting, chemical spills, underground storage tanks, and previous renovation of the site and removal methods. Further documentation to be investigated can include permit or reports maintained by the site. They can be air, water, and hazardous waste permits. Reports, such as, chemical inventory, spill prevention countermeasure and control plans (SPCC), and notice of violations.

Phase I Case Study (Example)
The following is a summary of an actual Phase I ESA:

Subject Property: 215 50th Street, Moline, Illinois

Performed by: Landmark Environmental Services, Inc. (LES)

The City of Moline requested the services of Landmark Environmental Services, Inc. (LES). LES conducted a Phase I Environmental Site Assessment (ESA) at the above-mentioned property.

LES has found the following at the property in question:

Current conditions

• 215 50th Street, Moline, Illinois is approximately 2 acres in size
• The property currently contains a rental home, trailer used as offices and trucks used as storage.
• The property is used as a storage site for various wood products.
• The wood products are ground and sold as mulch on the property.

Findings that would pose an environmental risk

• A property that is adjacent to the property in question (204 49th Street) had significant findings.
• At 204 49th Street LES found twenty-three 55-gallon drums that were in poor condition.
• The 55-gallon drums were full and not labeled.
• LES observed a paint or solvent type odor downwind from the 55-gallon drums.
• A salvage yard was also observed adjacent to the property in question.
• On the salvage yard the soil was observed to be stained and discolored.
• The property in question is down gradient from the salvage yard.
• The property in question had numerous refrigerators and appliances.
• The property in question had old batteries, fluorescent light bulbs and unlicensed old vehicles.
• A property that is adjacent to the property in question was previously owned and operated by a wooden toy manufacturer.
• The property that was operated by a wooden toy manufacturer also contains a large amount of wooden rail road ties currently.
• The property that was operated by a wooden toy manufacturer also contains a number of 55-gallon drums that were observed from the street.

References

American Society for Testing Materials, 2005, ASTM E1527 - 05 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. Retrieved October 3, 2009 from the World Wide Web: http://www.astm.org/Standards/E1527.htm

"Commercial Property Evaluations." http://www.fusion2e.com. 3 Oct. 2009 .

Lyon, D. R. (2007, June 4). Phase 1 Environmental Site Assessment Report. Retrieved October 4, 2009, from www.moline.il.us/departments/planning/economic/pdf/Phase%20I%20ESA%20-%20215%2050th.pdf

Nielsen, John T., and Neil K. Ostler. Prentice Hall's Environmental Technology Series, Volume V: Waste Management Concepts. Alexandria, VA: Prentice Hall, 1997.

Oklahoma Department of Environmental Quality, December 2006. Phase I TBA Pawnee Armory. Target Brownfield Assessment, Oklahoma Army National Guard, Pawnee Armory, Pawnee, Oklahoma. Retrieved October 3, 2009 from the World Wide Web: http://204.87.94.66/lpdnew/scap/SCAP%20Webpage/Pawnee/Pawnee%20TBA.pdf

"Phase I Environmental Site Assessment - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. 3 Oct. 2009 .

Pichtel, John. Fundamentals of Site Remediation. Lanham, Maryland: Government Institutes, 2007.

Raposa, Jeffrey (2001, June 21). PHASE I Environmental Site Assessment Interview Form. Retrieved October 5, 2009, from http://www.dot.state.co.us/4thStreetBridge/PhaseI/Appendix%20A%20Phase%20I%20interviews.pdf

U.S. Environmental Protection Agency. (2009). All appropriate inquiries. Retrieved October 3, 2009, from http://epa.gov/brownfields/regneg.htm

U.S. Environmental Protection Agency. (2009). Brownfields fact sheet: EPA brownfields grants, CERCLA liability, and all appropriate inquiries. Retrieved October 4, 2009, from http://epa.gov/brownfields/aai/aaicerclafs.pdf

U.S. Environmental Protection Agency. October 2005. EPA-560-F-05-242 Comparison of the Final All Appropiate Inquires Standard and the ASTM E1527-00 Environmental Site Assessment Standard. Retrieved October 4, 2009 from the World Wide Web: http://www.epa.gov/brownfields/aai/compare_astm.pdf

U.S. Environmental Protection Agency. (2009). Summary of the small business liability relief and brownfields revitalization act. Retrieved October 4, 2009, from http://epa.gov/brownfields/laws/2869sum.htm