Purchasing or developing property? Make sure your Phase I ESA shelf life doesn’t run out.

Much like a property title or lien search, an American Society for Testing and Materials (ASTM) Phase I Environmental Site Assessment (ESA) has become a standard part of the due diligence conducted before real estate transactions, property development, and a host of other transactions. An ASTM Phase I ESA:

  • Assesses the site’s environmental status, identifying any existing or potential environmental concerns that may impact the value of the site
  • Aids in obtaining financing
  • Helps in securing an “innocent land owner” exemption once the site is acquired

The ASTM Phase I identifies whether Recognized Environmental Conditions (RECs) that warrant further investigation are present at a site.

Be aware. If you are a developer or are purchasing a property, it’s important to remember that the ASTM Phase I Report that is issued following the ESA has a limited shelf life, after which it is no longer valid:

  • A Phase I ESA completed less than 180 days prior to the date of acquisition of the property is presumed to be valid
  • A Phase I ESA completed between 180 days and one year prior to the date may be used, but will require some significant updating, including:
    • Interviewing of the property owners, operators, and occupants
    • A search for recorded environmental cleanup liens
    • Review of federal, tribal, state, and local government records
    • The conducting of another inspection of the property and of adjoining properties
    • A declaration by the environmental professional responsible for the assessment or the update
  • A Phase I ESA that is more than one year old is presumed to be no longer valid

Brennan Environmental, Inc. (BEI) provides comprehensive due diligence services, including performing ASTM Phase I ESAs and updating an existing ASTM Phase I Report. For more information, please call us at 908-918-1702 or click here.

NJDEP Supports Community Approach to Brownfield Remediation

Communities seeking remediation of multiple brownfields to promote community-wide development efforts may be interested in the NJ Department of Environmental Protection (NJDEP) Brownfields Development Area (BDA) approach. As part of the approach, the Department works with communities to help design and implement remediation and reuse plans for multiple properties simultaneously. To learn more about the NJDEP program, click here. For information on BEI’s extensive brownfield remediation services, click here or call us at 908.918.1702.

EPA Extends Effective Date of Risk Management Program Amendments

The U.S. Environmental Protection Agency (EPA) has pushed back the effective date of Amendments to its Risk Management Program (RMP) to February 19, 2019. The amendments would be to the RMP’s Accidental Release Prevention Requirements. The delay gives the Agency more time to evaluate the Amendments and further consider questions and concerns it received during the public comment period and public hearing. Click here to read more. For more information on the RMP, click here.