Understanding the Role of Environmental Phase 1 Inspections

An environmental Phase 1 inspection, also known as a Phase 1 Environmental Site Assessment (ESA), is a standard practice to assess potential environmental liabilities associated with a property. It is typically performed by environmental consultants or firms specializing in environmental assessments. 

What Does an Environmental Phase 1 Inspection Entail?

This particular type of inspection is basically a four-step process. 

#1 Site Visit 

This stage of the process begins with a site visit by an environmental professional. They go out to the property in question and conduct a visual inspection of the site and surrounding areas. The specialist assesses the current condition of the property, identifies potential sources of contamination, and notes any signs of past or present environmental concerns. 

#2 Document Review 

The next step includes a document review. Any consultants working on the property will review all records related to the site. These include property deeds, environmental permits, aerial photographs, reported spills, leaking underground storage tanks (LUST), the presence of historical industries that are recognized as a high risk for pollution or soil contamination and other attainable government records. 

#3 Interviews 

Step three is the process of conducting interviews. The site assessors interview anyone or any organizations that can be helpful in providing additional information on the property or surrounding sites; that may include property owners, occupants, and stakeholders. 

#4 Reporting 

The last step is the writing of the report. Based on the information gathered in steps one through three, the inspector prepares a Phase 1 ESA report. This document provides a detailed assessment of the site’s environmental condition, possible risks, and recommendations for further inspection if necessary. 

What Types of Properties Need a Phase 1 ESA? 

In theory, all properties could get assessed for hazardous environmental conditions, but there are some for which this inspection is often required. Banks or lending institutions are the ones

that will have the final say in whether or not the property you are acquiring needs to be inspected. 

For instance, Phase I ESAs are often conducted for commercial properties, including office buildings, retail spaces, shopping centers, warehouses, and mixed-use developments. Such properties usually cover a significant amount of land and are therefore at a higher chance of being at risk. 

On the other hand, private residences don’t usually have to go through this process unless otherwise requested. 

What Property Concerns Does a Phase 1 ESA Look For? 

Phase 1 ESA inspections aim to identify any concerning environmental conditions that could negatively impact the physical structure built on it. Such negative conditions can include any type of hazardous materials or chemicals like petroleum products, solvents, asbestos, lead-based paint, and underground storage tanks. 

Additionally, any suspected spills must be examined to rule out dangerous effects on soil, groundwater, surface water, vapor encroachment into buildings or surrounding ecosystems. Surroundings near the property in question also need to be examined for potential risks; industrial facilities, landfills, and other potential sources of contamination. 

The purpose of this kind of inspection is to identify any environmental conditions that may become safety hazards to the property and impact its current or future use. It is important to note that Phase 1 inspection does not involve any physical testing or sampling of soil, water, or air. If potential environmental risks are identified, a Phase 2 Environmental Site Assessment may be recommended.