Phase I & II Quick Facts
Phase l ESA reports typically include a discussion of observed suspect asbestos containing materials (ACM), potential lead-based paint (LBP), and mold growth as well as the potential for lead in drinking water, VOCs, and radon. Sampling for these non-ASTM concerns is beyond the scope of a standard Phase I ESA, but can be included upon request.
A Phase II typically includes drilling at the site, collecting water and soil samples from the surface and at depth, and analyzing the samples for a range of chemicals which may be present at the site.
In 2019, the EPA reported about 35 million tons of hazardous waste generated by 23,700 active large quantity generators. California contains the highest number of active generators by far, outnumbering the next highest state (Texas) by at least three times.
It is estimated that there are more than 450,000 brownfield sites across the United States. A brownfield is a property where the reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
There are approximately 542,000 underground storage tanks (USTs) in the United States that store petroleum or hazardous substances. These tanks are hidden underground, so it is difficult to examine their condition without a trained professional or testing.
A Phase I ESA must be completed by an environmental professional which is defined as: A person who possesses sufficient specific education, training, and experience necessary to exercise professional judgment to develop opinions and conclusions regarding conditions indicative of releases or threatened releases (see 40 C.F.R Part 312.1(c)) on, at, in, or to a property, sufficient to meet the objectives and performance factors in 40 C.F.R Part 312.20(e) and (f).
Phase I ESAs have two key expiration dates. In order to be presumed viable for a property transfer or similar transaction (such as lease or refinance), the Phase I report cannot be older than 180 days. If the report is older than 180 days, then the following components must be updated prior to the transaction:
Interviews with owners, operators, and occupants
Searches for recorded environmental cleanup liens
Reviews of federal, tribal, state, and local government records
Visual inspection of the subject property and surrounding properties (site reconnaissance)
The declaration by the environmental professional responsible for the assessment or update
If more than one year has passed from the date prior to the transaction, an entirely new Phase I ESA must be completed.
