An Environmental Site Assessment (ESA) is essential for commercial properties in the U.S., particularly during acquisitions, financing, or refinancing. It helps identify potential contamination and environmental risks before transactions occur.
Phase 1 ESA assesses historical site use and potential environmental hazards, while Phase 2 ESA involves testing soil and water samples to confirm contamination presence. Understanding these assessments is crucial for potential property owners, buyers and lenders to mitigate risks and ensure regulatory compliance.
Phase 1 & Phase 2 Assessment: Side-by-Side Comparison
Phase 1 Environmental Site Assessment (ESA)
Phase 1 ESA is a preliminary environmental review that focuses on identifying potential contamination risks. This phase i environmental site assessment includes:
- Historical Research: Examining past records, including aerial photographs, land use history, government documents, and environmental databases to determine prior activities that may have led to contamination.
- Site Inspection: Conducting a visual survey of the property and surrounding areas to identify signs of contamination such as stained soil, chemical storage, abandoned structures, or improper waste disposal.
- Interviews: Engaging with property owners, occupants, neighboring businesses, and local government officials to gather insights into the site’s past usage and any known environmental concerns.
- Regulatory Review: Checking compliance with local, state, and federal regulations to determine if the property has a history of environmental violations or concerns.
The goal of Phase 1 ESA is to assess for site contamination or the likelihood of contamination without physically disturbing the site. If evidence of potential contamination is found, a Phase 2 ESA is recommended.
Phase 2 Environmental Site Assessment (ESA)
Phase 2 ESA is a more in-depth evaluation that involves physical testing to confirm the presence and extent of contamination. This phase ii assessment includes:
- Soil and Groundwater Sampling: Collecting and analyzing samples from various depths and locations to detect hazardous substances like petroleum, heavy metals, pesticides, and volatile organic compounds (VOCs).
- Air Quality Testing: Measuring indoor and outdoor air quality to identify contaminants such as radon, mold, and asbestos that may pose health risks.
- Geophysical Surveys: Utilizing advanced techniques like ground-penetrating radar and electromagnetic sensors to detect underground storage tanks, buried waste, or structural hazards.
- Ecological Assessments: Evaluating the impact of potential contamination on nearby wetlands, water bodies, and protected ecosystems to ensure regulatory compliance and conservation efforts.
- Laboratory Analysis: Comparing the collected data with federal and state environmental standards to determine the severity and risk level of contamination.
Phase 2 ESA provides scientific evidence to confirm or refute the presence of environmental hazards. If contamination is confirmed, then further investigation, remediation and mitigation strategies must be implemented before property transactions or developments can proceed.
Is ESA Means Tested?
Environmental Site Assessments (ESAs) are not means-tested in the traditional sense, as they are not based on an individual’s income or financial status. Instead, ESAs are conducted based on regulatory requirements and industry best practices.
The need for an ESA is determined by factors such as property type, past land use, lender requirements, and local, state, or federal environmental regulations. Commercial property transactions often require ESAs to mitigate liability and ensure compliance with environmental laws.
While certain government programs may offer financial assistance for site assessments and remediation, the assessment process itself applies universally to qualifying properties, regardless of financial considerations.
Why Conduct a Site Assessment?
The importance of an environmental site assessment cannot be overstated. In 1980, a series of court determinations tasked the current property owners and lenders with the burden of environmental contaminant clean-up.
The current landowners were tasked with contamination clean-up even though the previous occupiers had been responsible for the contamination. The court’s determinations were based on the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The CERCLA environmental framework held these parties—owners, users, occupiers, and lenders—responsible for clean-ups even if the contamination emanated from previous owners.
Inter-State Environmental Site Assessment Regulatory Guidelines
It’s crucial to note that environmental guidelines differ among states.
Virginia
In Virginia, the Department of Environmental Quality (DEQ) is responsible for coordinating the Commonwealth’s response to environmental action. The department is responsible for environmental planning records for all Federal and State projects. The Department of Environmental Quality oversees all the documentation involved in state projects.
The Office of Environmental Impact Review reviews the following projects:
- Environmental impact reports for state projects
- Virginia Department of Aviation environmental reports
- State Corporation Commission environmental reports
- Exploration of resources in state-owned mines
- Environmental assessment on drilling of Tidewater
Federal projects
- Federal consistency reviews in conformity to the Coastal Zone and Management Act
- National Environmental Policy documents
Maryland
In Maryland, response to environmental contamination and rehabilitation is solely the reserve of the Environmental Protection Agency. The Environmental Information for Maryland is captured by the EPA and states the environmental conditions and guidelines.
The environmental requirements for environmental contamination and rehabilitation include air in Maryland. All approved air state implementation plans for air quality will be approved by the Environmental Protection Agency.
Other air-related acts and regulations include:
- Clean Air Act in Maryland
- Local air indoor quality champions
- Mercury and Air Toxics
- Community air monitoring
- Radon measurement maps
- Status of region operating permits
These and other regulations underlie the environmental site assessment process in Maryland.
D.C. Area
The District of Columbia has a different approach to environmental impact assessment.
According to the D.C. ESA regulations, whenever the Board, Mayor, buyer, or any other person approves a major action that’s likely to have negative environmental implications—if implemented, the Mayor, the Board, the authority, or persons who approved such actions with detrimental environmental effects shall prepare a detailed Environmental Impact Assessment (EIS) plan within 60 days before its implementation.
The District of Columbia, otherwise referred to as D.C., finds authorities tasked with environmental well-being as central in actualizing sustainable environmental action plans through proper review and approval processes.
DFM Development Services – Experts in Environmental Impact Assessment
You can contact DFM Development Services for consultations on environmental impact assessments in either D.C., Virginia, or Maryland areas. We are a seasoned provider of professional EIA services—alongside document review and approval solutions for Federal and State projects.
