Curren Environmental Blog

Who Requires A Phase I Environmental Site Assessment (ESA)?

Who Requires A Phase I Environmental Site Assessment (ESA)?

Traditionally, a Phase I Environmental Site Assessment (ESA) was contracted by the bank or lending institution on properties where financing was being arranged.  The Phase I was primarily performed for the protection of the banks, who were concerned that if they loaned money for a contaminated property they may be held liable for the site cleanup.   This belief was incorrect as banks have liability protection on loans.   Today, many banks with loans under a million dollars and borrowers supplying a down payment do not require a Phase I.  This has been an industry shift over the past several years as banks have come to understand where their limit of liability stands.    The real liability is financially for the bank, as they are concerned that the cost of environmental work can hinder the borrower from paying the mortgage and defaulting.  Leaving the bank to own the asset.   Banks want to loan money and receive mortgage payments not foreclose on bad loans.

What is included in a Phase I?

The Phase I is a property assessment that includes a walkover of the property and associated structures; a review of historic property information including maps, aerial photographs, deeds, telephone or address directories, etc.; a review of contaminated properties in the vicinity of the subject property; a summary of knowledgeable party information and review of prior reports; and the review of local, State and Federal files pertaining to the property address.

Items evaluated in the Phase I report include tanks, drains, pits, spills, in-ground and aboveground equipment, petroleum and chemical use, and environmental liens.

The Phase I report is typically research only.  Unless otherwise specified as part of the scope of work, testing or surveys are outside of the typical Phase I requirements. For more information on Phase I click here. 

Why complete a Phase I if my bank does not require one?

Although many banks are not requiring a Phase I on some commercial loans (under a million or low risk), the environmental regulations leave the burden of environmental responsibility on the property owner.  Performing a Phase I, allows a purchaser to complete the necessary due diligence.  This due diligence enables a purchaser to obtain prior to taking possession of a property.  Buyer beware is relevant now more than ever in commercial real estate transactions.  If a property is purchased without a due diligence and future evaluation and subsequent environmental issues are found in association with the property, the property owner is now burdened with the cost of remediating the issue. The performance of a pre-purchase Phase I could alleviate the potential for finding environmental issues in the future and thereby holding up future transactions.  As a potential purchaser, the determination of environmental issues on a property could be used as leverage for the seller to remediate the concern prior to purchase or could be used to negotiate the property value pending the need for the potential purchaser to perform the cleanup.

If I do not do a Phase I and buy a property how would I ever find out if there was an environmental problem with the site?

The most common way is when you go to sell and the potential buyer completes a Phase I and discovers an environmental Area of Concern (AOC).   Today the largest purchaser of Phase I’s is not the banks, but commercial real estate investors and owners (*transactions under $1,000,000.00).

I own a property, never had a Phase I and I am now thinking of selling the property.  Do property owners have Phase I’s performed?

One of the largest shifts in the commercial real estate market today is that many landowners are having a Phase I performed to root out environmental issues before they become an issue when a buyer is found.   An owner performed Phase I is viewed as both a marketing tool and an environmental property assessment that can help sellers anticipate issues with a property.  It can be akin to a homeowner having a home inspection completed to address issues that a purchaser might find during their inspection. 

If an environmental issue is found in a Phase I report on a property I am buying, can I still purchase the property?

If the issue is fully disclosed to the lender (if one is involved) and the buyer is willing to accept the liability and cost of addressing the issue, then yes you can buy the property.  However, the real question is should I address the issue before buying the property?

The investigation of potential issues found in the Phase I is typically addressed as part of a Phase II Environmental Site Assessment.

What is Incandescent?

The incandescent light bulb or lamp is a source of electric light that works by incandescence, which is the emission of light caused by heating the filament. They are made in an extremely wide range of sizes, wattages, and voltages. On January 1^st, 2014, by a law passed by Congress in 2007, these bulbs can no longer be manufactured in the U.S. because they don’t meet federal energy efficiency standards. Many other countries have adopted the same type of law as well due the fact that other types (CFL, LED) are much more energy efficient.

What is CFL?

Compact fluorescent lamps (CFL) are smaller versions of standard fluorescent lamps. They consume much less energy but provide light that is comparable to incandescent lights. Also, they can generally directly replace standard incandescent bulbs. Per the EPA, Compact Fluorescent Light Bulbs will help you save money by using less energy, reducing the amount of light bulb changes and most importantly lowering the greenhouse gas emissions which inevitably will lead to climate change.  More information can be found one the EPA website. To find out more about costs, visit Home Depot.

What is LED?

LED (Light emitting diodes) is a semiconductor devise that emits light when and electronic current is passed through it. A study found that over their lifetime LEDs cost $95 to operate compared to CFLs that cost $159 and incandescent bulbs that cost $652. LED bulbs are available in options that either emits a warm, soft glow or a cool, bright glow depending on your preference. Some types perform well outdoors even in cold temperatures. Dimmable options are also available. LEDs (light emitting diodes) use 75-80% less energy than incandescent light bulbs and last 50,000 hours helping you save energy and money. For more information on cost, check out Lowe’s for LED light bulbs.

Which light bulb should you use?  Until LED bulbs drop in price, most people will not realize savings if installed on all fixtures.  Generally speaking, lights that will remain on for an extended period of time (kitchen, family, hallway and dining areas) will benefit the most as they consume electricity for longer periods of time.  Closets, bathrooms, laundry rooms are areas where light is not constantly on and thus do not warrant energy efficient lighting.  As light bulb prices drop, as they have in recent years, it may be more economical to replace all lights with energy efficient lighting.  Your best bet is to choose an ENERGY STAR Certified Light Bulb.  These use 70% to 90% less energy than traditional incandescent light bulbs and can last 10 to even 25 times longer.  This can save you $30 to $80 over the lifetime of the light bulb.  How many times do you change your light bulbs – you do the math.

Are you taking a 20 minute shower? Do you leave the water running while washing dishes?

There are many theories and thoughts about our water supply.  Are we going to have enough in the future?  Is our water supply depleting?  We have stories from NASA, CBS News, and the National Geographic, these stories are telling us that we need learn how to conserve water.  Water conservation is using water efficiently and avoiding waste. Everyday use of water such as dishwasher use, laundry use and long hot showers significantly reduce clean water and add to more strain on septic and sewage systems which then lead to contamination of groundwater.  Conserving water is a national topic and the information that can be found on the web is abundant. 

Earth is made of 70 percent of water but only 1 percent of that is considered fresh, clean water available for use.

Tips for conserving water: 

1. When washing dishes by hand, don't let the water run while rinsing. Fill one sink with wash water and the other with rinse water.
2. Adjust sprinklers so only your lawn is watered and not the house, sidewalk, or street.
3. Run your dishwasher only when it is full and you could save 400 gallons a month.
4. Use the garbage disposal sparingly. Compost instead and save gallons every time.
5. Plant during the spring or fall when the watering requirements are lower.
6. Use a layer of organic mulch around plants to reduce evaporation and save hundreds of gallons of water a year.
7. Turn off the water while you brush your teeth and save 3 gallons a minute. That's more than 1000 gallons a year.
8. Direct downspouts and other runoff towards shrubs and trees, or collect and use for your
9. Time your shower to keep it under 5 minutes. You'll save up to 1000 gallons a month.
10. Consider installing new appliances. They are more water and energy-efficient than older appliances. A new washing machine can save up to 20 gallon per load.
11. Install low-volume toilets.
12. Put food coloring in your toilet tank. If it seeps into the toilet bowl, you have a leak. It's easy to fix, and you can save more than 7000 gallons a year.
13. Soak your pots and pans instead of letting the water run while you scrape them clean.
14. Do one thing each day that will save water. Every drop counts!
15. Start a compost pile. Using compost when you plant adds water-holding organic matter to the soil.
16. Aerate your lawn. Punch holes in your lawn about six inches apart so water will reach the roots rather than run off the surface.
17. Turn off the water while you shave and you can save more than 100 gallons a week.
18. Do not use water to defrost your food, put it in your refrigerator to defrost.
19. Store drinking water in the refrigerator rather than letting the tap water run cold
20. Install Rain Barrels

What are Rain Barrels?

A Rain Barrel (rainwater tank) is a water tank used to collect and store rain water runoff, typically from rooftops via rain gutters.

Why install a Rain Barrel?

Drought and aquifer mining are increasing in terms of use. Many people are looking for a ways to minimize the impact of their municipal water supplies. Installing a rain barrel is way to help conserve water.  You will have your own water source in case of a drought.  You can water your garden from your rain barrel reserves.  Having your own rain barrel helps reduce runoff pollution by collecting water before it hits the fertilizer, and increase algae growth in lakes. Rainwater, unlike tap water, doesn’t have the salt and chemicals.

Photo courtesy of Emma Howell, Shawnee High School.

Some interesting facts about Rain Barrels: 1-inch of rain on a 1,000 square foot roof yields 623 gallons of water. Calculate the yield of your roof by multiplying the square footage of your roof by 623 and divide by 1,000. Depending on your roof area, a rain barrel can fill up when there has been as little as 1/10th-inch of rain. To collect twice this volume from the same downspout, connect the overflow hose from the first rain barrel to a second rain barrel.

Conserving water helps the community, the environment and may even help lower your electric bills.  Conserving water may also help keep moisture away from your house, keeping possible mold from growing in your home.

Check your local County website for different ways you can help and conserve your own water.  Many counties offer free classes on conserving water and how to build your own rain barrels. 

Green Lawn Tips

Remember what your lawn looked like last year?  Good or bad lets get it green.  Here are a few tips to get started.

Americans spend over $6.4 Billion a year on lawn care, according to the Professional Lawn Care Association of America. Why not get started in the spring to ensure a beautiful green and healthy lawn.

Start out by checking the soil pH levels.  Winter can alter the soil pH and create conditions that are friendly to weeds and disease.  The soils pH should read between 6.5 and 7.0 which are slightly acidic. You can test your soils pH by purchasing a pH tester.  After the soil has been checked, invest in a rental aerator.  In high traffic areas grass becomes compacted.  The aerator will draw wine cork-sized plugs out of the lawn surface giving roots the room to spread and allow for air, nutrients and moisture to penetrate the soil.

Pro Tip 1

The soil cores should not be raked always, as they contain bacteria and nutrients that will return to the soil.

In the early spring, apply a pre-emergent weed control to prevent crabgrass.

 Pro Tip 2

½ the dosage of preemergent and reapply in 3 weeks to increase the treatment duration.  Try to get your immediate neighbors to do the same so you encompass a larger spread of weed control.  If your neighbor does not apply preemergent, weeds can grow and move to your yard.

During late spring fix any patchy places and apply your seed.  When seeding in the spring it is pertinent that you provide consistent watering to allow the seed to germinate

Pro Tip 3

Water twice a day for 7 to 10 days to allow the seed to germinate.

When watering, make sure one inch of water to 12 inches of soil is preferred ratio for watering actively growing grass.  You most likely will have to seed again in the fall months.

With the spring upon us, it is very important to prepare your lawn for the warmer, sunnier months ahead.  Having a nice, thick green lawn helps with excess rain, capturing the moisture so it does not end up in your house and produce mold. 

IDo you think you have mold in your home or dwelling?  Curren can answer your questions call now at 888-301-1050 or email at info@currenenvironmental.com. 

Why does the 1^st day of Spring Start on March 19^th?

What is the first day of spring?  Well, naturally it means the flowers are supposed to bloom, the day is longer, the weather gets warmer and the rain never stops.  Astronomically speaking, it is when the equinox occurs when the Sun crosses the celestial equator on its way north along the ecliptic.   

In the years 2008 and 2012, those living in Alaska, Hawaii and the Pacific, Mountain and Central Time Zones on March 19. And in 2016, it if you are in California it will start on March 19, for the Eastern states it will be on March 20^th at 12:30 AM.

There are a few reasons why seasonal dates can vary from year to year.

A year is not an even number of days and neither are the seasons. To try and achieve a value as close as possible to the exact length of the year, our Gregorian Calendar was constructed to give a close approximation to the tropical year which is the actual length of time it takes for the Earth to complete one orbit around the Sun. It eliminates leap days in century years not evenly divisible by 400, such 1700, 1800, and 2100, and millennium years that are divisible by 4,000, such as 8000 and 12000.

Another reason is that the Earth's elliptical orbit is changing its orientation relative to the Sun (it skews), which causes the Earth's axis to constantly point in a different direction, called precession. Since the seasons are defined as beginning at strict 90-degree intervals, these positional changes affect the time Earth reaches each 90-degree location in its orbit around the Sun.

The pull of gravity from the other planets also affects the location of the Earth in its orbit.

So Spring doesn’t start on March 21^st not even March 20^th for the western and mid-western states. Find your date and mark your calendars for the first day of spring! Get the garden tools out, check the lawn mower and prepare your cleaning supplies a day earlier.  Also, check your downspouts and make sure there is proper drainage that slopes the ground away from the foundation of your house or dwelling to ensure no water or moisture gets in to prevent against indoor mold.

For more information about Curren Environmental click here. 

If Mold Remediation was performed properly there are a few things you should be able to see, even with an untrained eye. 

1. On a basic and an expected disclosure basis, the owner should be able to explain what the mold problem was, including the extent and cause.
2. The area remediated should look clean or cleaner than it was before the remediation. While clean is tough to quantify, you would not expect a crawl space or a basement to have a sense of clean like a living room, generally it should be devoid of debris and heavy/dust/dirt.
3. No mold should be visible. This is important, as the site of mold may have been the trigger for remediation.  Remember remediation = removal.
4. The space should be dry. Simply put, moisture caused the mold growth, just remediating the mold without addressing the cause does not solve your problem. There  should be a working dehumidifier in basements and crawl spaces. Building repairs that allowed the initial water entry should be completed, such as leaking basement windows, or roof leaks.  On the outside -  roof leaders should be extended away from the house.   There should be a slope away from the foundation to carry water away (positive drainage). 
5. Ceilings, wood framing, roof sheeting, any remaining organic surfaces within the space, should have been treated with a mold resistant coating.  The coating seals the wood to prevent moisture from getting a toehold, which is exactly how the mold was able to grow  in the first place.  The coating should also have a long acting fungicide to prevent future growth.  The better coatings have a 10 year warranty and are white in color so you know the area has been treated visually.  The clear coat products have lost favor, as it is difficult to ensure that application was even and thorough throughout the space.
6. If the owner performed the remediation, an invoice should be obtained to ensure that the mold remediation was performed professionally and not DIY. 
7. A warranty (typically on the mold resistant coating) should be obtainable and transferable to the new owner.  Warranties that are provided by the company PERFORMING the work are nearly worthless since these companies come and go with little in financial backing.  The companies that manufacture and sell the coating to mold remediators to utilize are multimillion dollar firms with the deep pockets to backup and support any future warranty claims.Click to edit your new post...

Due Diligence and the Innocent Landowner Defense

The experienced and well informed know that due diligence is an important and common practice when purchasing real estate.  The advantage of due diligence and conversely not performing due diligence can best be compared to the saying "you break it, you buy it".  In real estate terms if you buy a property that has an environmental issue (broken) that you were not aware of prior to purchase, you own it and the issue is yours to pay for no matter the cost or value of the real estate.

For example a couple received an inheritance from a relative, the money's were substantial enough for the couple to realize a dream of buying and operating an automotive garage.  This dream was achieved by buying a garage cash from a fellow who was retiring.  They were able to buy the land and tools for approximately $100,000.00. (As a side note the lower the value of the property, the more risk there is that an environmental issue can be a large percentage of the property price. I say this as time and again prospective buyers defer a Phase I as the purchase price is low).   They used an attorney for the paperwork, but no bank was involved.  While the attorney advised of performing a Phase I, the buyers were not concerned and did not want to derail the deal for something they saw as a waste of time and money.   Couple buys property, run the garage for three years and then husband develops health concerns limiting physical activity such as working on cars.  Couple list property for sale, potential buyer finds property and decides to buy it.  Buyer goes to bank, as he is not able to pay cash as the current owner did.  Bank does phase I, finds issues leading to a phase II. Phase II finds oils in ground from garage operations. Buyer requires owner to remediate, owners say not their problem and are selling as is.  

Deal falls through, owner now paying money from retirement to cleanup the problem.  Buyer is gone, garage is closed and owners are spending 50% of what they paid to cleanup the site. 

Can the owners claim an innocent landowner defense?  

No, the innocent landowner defense is based upon a party purchasing a property and having no knowledge of contamination at time of purchase. A buyer must perform an all appropriate inquiries (AAI) prior to purchase to begin to have this defense.

What does an All Appropriate Inquiries (AAI) inquiry entail?

Completion of a Phase I ESA as per

1. All Appropriate Inquiries

“All appropriate inquiries” refers to the process of evaluating a property’s environmental conditions and assessing potential liability for contamination either past or present.  This applies to any party seeking to assert protection from CERCLA liability as an innocent landowner, or a bona fide prospective purchaser, or a contiguous property owner. 

In 2002 Brownfields Amendments were set forth requiring the EPA to establish regulations establishing standards and practices for conducting all appropriate inquiries. These practices were meant to include research into the previous ownership and uses of a property necessary to qualify for certain landowner liability protections. 

November 1, 2005, the EPA published in the Federal Register its final rule entitled “Standards and Practices for All Appropriate Inquiries,” in which it declared that the American Society for Testing and Materials (“ASTM”) E1527-05 standard, entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process,” can be used to comply with the provisions of the rule.  The standards and practices constituting “all appropriate inquiries” are set forth in 40 C.F.R. Part 312.

What is included in the All Appropriate Inquiries?

1. Must be conducted or updated within one year of acquiring ownership of a property. 
2. Interviews with past and present owners, operators, and occupants, the review of government records, visual site inspections, and searches for environmental cleanup liens, must be conducted or updated within 180 days prior to acquiring ownership of the property.
3. An environmental professional must conduct or oversee the conduct of activities required by the all-appropriate inquiry rule. 
4. The environmental professional must conduct the following inquiry activities:

• Interviews with past and present owners, operators, and occupants of the facility for the purpose of gathering information regarding the potential for contamination at the facility;
• Reviews of historical sources, such as chain of title documents, aerial photographs, building department records, and land use records, to determine previous uses and occupancies of the real property since the property was first developed;
• Reviews of Federal, State, and local government records, waste disposal records, underground storage tank records, and hazardous waste handling, generation, treatment, disposal, and spill records, concerning contamination at or near the facility;
• Walking inspections of the site and of adjoining properties;
• Assessments of commonly known or reasonably ascertainable information about the property; and
• Assessments of the degree of obviousness of the presence or likely presence of contamination at the property, and the ability to detect the contamination by appropriate inspection.
• 5 Searches for recorded environmental cleanup liens against the site that are filed under Federal, State, or local law.

6. Assessments of specialized knowledge or experience on the part of the prospective landowner.
7. The relationship of the purchase price to the value of the property, if the property was not contaminated.

An innocent landowner defense also extends to the operation and maintenance of the site after purchase. Once the property is owned the new owner must take reasonable steps to stop any continuing release, prevent any future release, and prevent or limit human, environmental, or natural resource exposure to any previously released hazardous substances. The owner must also cooperate, provide assistance, and allow access to persons to conduct response actions or natural resource restoration at the site. Owners must maintain any and all land use restrictions and not degrade the effectiveness of institutional controls.

Additional responsibilities cover cooperating with requests and administrative subpoenas concerning the facility and follow through with all legally required notices (public notification and government) regarding the discovery or release of any hazardous substances at the facility.

Lastly to comply with AAI, the purchaser cannot be associated/affiliated with any other potentially responsible party through any direct or indirect familial relationship, or any contractual, corporate, or financial relationship (excluding relationships created by instruments conveying or financing title or by contracts for the sale of goods or services).

Bottom line the new owner has to be able to prove that the environmental contamination damages were caused by a third party with whom the new owner does not have an employment, agency, or contractual relationship, as defined in 42 U.S.C. § 9601(35).

Buyers beware and perform your due diligence so you know before you buy?

(Raised Mold On Wood)

There are so many myths out there regarding Mold.  If you Google “Does Mold Cause Cancer” you will get many different answers.  Let’s see if we can find the truth.

The best and only place that you should ever visit on the web regarding mold are government sites, such as the CDC, EPA  or state sites. Many states have no standards regarding mold and Mold Inspectors and Remediators do not have to be licensed.  New York is one of the only states at this point that Mold Inspectors and Remediators have to be licensed and this began starting this January (2016).

Examples of Government websites.

www.cdc.gov/mold/faqs

This website details many different issues that arise regarding mold.

http://www.epa.gov/mold

Good information on keeping a home mold free.

The State of New York

http://www.nyc.gov/html/doh/html/environmental/mold.shtml

Can Mold really make you sick?

No and yes, not all molds cause illnesses or even cause cancer.  There are thousands and thousands of types of mold and mold spores that are alive in every area of our living space. This means both inside and outside there are some levels of mold.  The most important part of understanding mold is finding where the moisture problem is – take care of the moisture problem first, then address the mold.  With that being said, if mold is present and there is belief that this is causing some sort of illness, testing for types of mold and mold spores would be a good idea.  In the event that you have certain types of mold spores a remediation would be necessary. For example, if there is Aspergillus spores, there is a possibility of illness in those with weakened Immune systems. (https://www.nlm.nih.gov/medlineplus/ency/article/001326.htm).  That is just one example of types of spores that have possibility of causing illness. 

Remember – always double check your information.  The internet is not always correct.  Double check the information and again make sure that these sites you receive your information are government websites.  

For more information on Types of Mold click here.

Questions about Mold?  Please call us at 888-301-1050 or fill out the form below.  Thank you.

GPR (Ground Penetrating Radar)

Ground Penetrating Radar surveys (GPR) can locate subsurface obstructions – including utilities, Underground Storage Tanks (UST), former swimming pools and more.  For more information GPR systems click here.

Why do you need a tank scan (tank sweep)?

Sometimes homeowners are unaware that they are the owners of an Underground Oil Tank (UST). They had gas since they bought the house, or there was an above ground oil tank but had no knowledge of an UST. When the homeowner decides it’s time to sell notably there is no evidence of an UST. This is when the Buyer makes the decision to do a tank scan. 

Things to know if you believe a tank scan is necessary.
1. House built before 1985
2. Above Ground Oil Tank
3. Fill Pipe
4. Vent Pipe
5. Copper lines
6. Neighborhood that typically has Underground Storage Tanks
7. A furnace chimney
8. Oil Emergency Shut Off Switch by heater

House built before 1985
Almost always there was an oil tank if the house was built in the 1940’s and early 1950’s
If the house was built before 1985 you should presume that there is an Underground Oil Tank unless the seller provides otherwise.

Above Ground Oil Tank
Before oil tanks homes were heated with coal. Then the underground oil tanks were followed by above ground oil tanks. If there is an Above Ground Oil tank there is a large possibility that there, at some time, was an Underground Oil Tank.

A Furnace Chimney
In many old homes the chimney was not just used for wood burning, it was used for coal or oil. Check the chimney and see how many flues there are.

Need a tank scan (tank sweep)?  Please fill out the form below or please call at 888-351-1050.

Prevention Tips to keep a clean and moisture free home.

Steps to prevent Mold in the Winter Months...

Don’t let mold grow over the winter…

Steps to prevent mold in the winter months.

• Keep moisture from creeping in your home or building.
• Check for cracked or defective areas in your basement. Water can find those areas and seep in.
• Inspect all outside drainage areas, all the roof leaders (downspouts), all gutters should be cleaned and clear.
• If the home is vacant for the season make sure all pipes are dry and the water has properly been shut off.
• Set the heat to a proper temperature to ensure no pipes can freeze and burst.

• If there are freezing temperatures, take measures to insulate pipes inside and out to ensure they will not crack and/or burst.
• Make sure all the seals on the windows and doors are not compromised and in good-working condition.
• Ensure proper ground sloping away from your home or building foundation so that water does not collect in a certain area to enter it.
• Properly use your bathroom fan.  Always use when the shower is on and try to keep a window open.
• Always act quickly if you see condensation on windows, pipes, or walls inside a building. Find the source of the condensation and provide a solution.
• Keep everything clean and dry.

Cold and wet moisure can creep into cracks, holes and small areas of your home or building.  If you see any moisture build up find the source as soon as possible to prevent mold growth.  

Questions or concerns on Mold?  Contact us by filling out the form below.