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A Phase I ESA is like your common screwdriver, a trusty, and dependable tool that most people know what it is used for, just like buyer due diligence, which is your insurance when buying a property.  A Phase I when completed properly provides protection under CERCLA, the Federal Superfund law, so Federal protection.

A Preliminary Assessment or "PA" is more like the tool in your workbench that you are not 100% sure what it is or how to use it.  New Jersey has its own innocent purchaser defense that requires a property owner to demonstrate that, at the time they acquired the property, they did not know and had no reason to know that any hazardous substance had been discharged at the property, by performing an “all appropriate inquiry” prior to purchase.  The PA provides NJ innocent landowner defense. 

 

A Phase I Environmental Site Assessment is meant to identify Recognized Environmental Conditions (REC)as defined by the American Society for Testing Materials (ASTM).   A Phase I report will include a comprehensive records review, interviews with knowledgeable parties, noninvasive walking inspection of the property, any data gap identification, an environmental lien search, and a comprehensive historical records review (think a 100 year lookback).

The current ASAT standard for a Phase I is E1527-21 which outlines how to assess the environmental condition of the Property utilizing the All Appropriate Inquiry (AAI). AAI is defined as an inquiry into the previous ownership and use of the Subject Property consistent with good commercial or customary practice as defined by CERCLA 42 U.S.C. §9601(35) (B). According to ASTM E1527-21, non-scope considerations that a consultant may want to assess in connection with commercial real estate and to which no implication is intended as to the relative importance of inquiry into such non-scope considerations consist of: asbestos-containing building materials; radon; lead-based paint; lead-in-drinking water; wetlands’ regulatory compliance; cultural and historic resources; industrial hygiene; health and safety; ecological resources; endangered species; indoor air quality; biological agents; and mold.

A Phase I includes zero testing but may find RECs that require testing.  The Phase I evaluates a property’s environmental condition and assess its potential liability for contamination. 

A Preliminary Assessment follows EPA guidelines not ASTM and is like a Phase I on steroids. The Preliminary Assessment will include an Order of Magnitude Analysis to ensure that previously generated environmental data is compliant with current regulations.  The PAR (Preliminary Assessment Report) is more detailed regarding both research and database research.  The Preliminary Assessment will look at historical manufacturing directories, deeper level of contamination identification, including recommendation(s) should the PA reveal any Areas of Concern (AOC) that require further investigation.  The more extensive environmental evaluation in a Preliminary Assessment entails a search/evaluation of the Site, specific to both current and historic operational and environmental information to determine if there have been any confirmed or potential releases or discharges.  A key part of this is an “Order of Magnitude” evaluation comparing past investigation results to current regulations and standards. Standards change and what may have been acceptable in the past can be out of compliance today.  Past environmental investigations can be found to be lacking and not compliant with today's standards, thus requiring further evaluation.  The additional layer of evaluation helps support a property owners NJ Innocent Purchaser Defense and, in some circumstances, can help acquire funding to remediate sites should contamination be found that was not identified in the report. 

Phase I  Preliminary Assessment Pro Tip 

In New Jersey, if you are opening a daycare or are subject to ISRA,  you need to complete PA, as NJDEP requires a PA not a Phase I.

 

Important facts about a Phase I vs a Preliminary Assessment

1.   A Phase I ESA is a screening tool to evaluate possible environmental liabilities at a property.   It is strictly lender level ASTM compliant research and data review for financial transactions. The party paying for the Phase I may choose to not investigate(test) any RECs from the Phase I.  A Preliminary Assessment covers state (NJ-specific) liability and is necessary to be in compliance with NJDEP's Technical Requirements for Site Remediation (N.J.A.C. 7:26E)  to obtain protection from potential liability as an innocent landowner (under the NJ Spill Compensation and Control Act N.J.S.A. 58:10-23.11) 

2.  The timing of a Phase I is 2 to 3 weeks.  A Preliminary Assessment takes longer and can  take 20-45 days, due to the additional research involved and you have to wait to receive File Review replies from local and state agencies.

 Can you combine a Phase I & Preliminary Assessment?

Curren has been working on PHIs for over 30 years and this has been a more recent trend in real estate sales.  Curren has been performing PHI/PAR reports for many clients with legal representation in the transaction.   

Phase I or Preliminary Assessment Questions?

Call the Experts

888-301-1050

 

 

 

No testing is performed during the typical PHI and PAR.  The sampling would be performed during the PHII ESA or Site Investigation phase.

How to Choose an LSRP? aka Hiring an LSRP

After 8 years of LSRP mandated involvement in the state of New Jersey we still are asked, how do I choose an LSRP?

If you are looking to retain an LSRP for an environmental issue, your property is either in the State of New Jersey or Massachusetts. New Jersey implemented the LSRP program to more or less privatize the cleanup of contaminated sites in New Jersey. The LSRP program is telling in the fact that only two states have LSRP programs.

You will need an LSRP is you own are connected (responsible) for a property in New Jersey that has found to contain contamination. Contamination at a site could be from your involvement or historic contamination that may not have ever been known or disclosed to the current owner prior to purchase. We work at a number of properties that require LSRP involvement due to contamination being left behind from a prior owner. The laws are that if you own the site even if you did not cause the contamination you are responsible. This is true for most all sites, it can have exceptions such as where contamination had been previously found under another owner and that owner is listed as the Responsible party (RP) according to the New Jersey Spill Act.

 

The New Jersey LSRP program started on May 7, 2009, then Governor Jon Corzine signed the Site Remediation Reform Act N.J.S.A. 58:10C – 1 ("SRRA") into law. One of the many provisions of the law establishes a program for the licensing of Licensed Site Remediation Professionals ("LSRPs") environmental professionals that have the experience with environmental impacted sites and who pass a proficiency exam. An LSRP has the responsibility for the oversight of environmental investigations and cleanups of applicable site in New Jersey. There was a phase in period of the program, which ran until May 7, 2012.

Bottom line, as of May 7, 2012, all applicable remediation’s (any commercial or industrial site as a rule) requires LSRP involvement in the state of New Jersey. Even sites that may have been undergoing remediation prior to May 7, 2009, without regard to when remediation was initiated, are required to find and retain a Licensed Site Remediation Professional (LSRP), as per N.J.S.A. 58:10B-1.3b(1) through (9).

An LSRP takes responsibility of navigating responsible parties through the NJDEP’s Site Remediation Program (SRP). In short, if you have contamination, you must determine the source, define the area of contamination, determine media affected by the contamination (soil, groundwater), evaluate for vapor concerns if applicable and then determine a course of action. Addressing contamination may mean physically addressing the contamination (soil excavation, chemical or biological treatment) or by permitting the contamination in place (deed restrictions, Classification Exemption Areas CEA).

Before the LSRP program an RP would receive a No Further Action (NFA), today you receive an RAO or Response Action Outcome (RAO) document that effectively replaces the No Further Action (NFA) letter previously issued by the NJDEP. On sites where an RAO includes the use of institutional or engineering controls, which are meant to be protective of public health, safety, and the environment, an LSRP must remain involved for any required post-RAO monitoring.

For sites where all applicable remediation standards have been met (meaning no institutional or engineering controls are required), then an unrestricted-use RAO is issued as the final remediation document, and the role of the LSRP is completed.

Hiring an LSRP is similar to engaging other professionals such as accountants or lawyers. As with any professional, you will find some are better than others. You need to look at the broad picture of what you will need with engagement of an LSRP. Meaning, any licensed LSRP will have the experience and background to perform the work as they hold the LSRP license. Outside of just experience you will also be incurring costs for fieldwork, such as drilling, soil and water sampling, excavation, geophysical surveys, air monitoring, the list can be long. These blue-collar services so to speak can dwarf the hourly rates of the professional (LSRP) directing the activities. Boutique firms such as Curren Environmental retain these services in-house to not only ensure the quality of the services, but also the cost. We find our rates to be below those of firms where subcontractors must be sourced and markups added by the environmental consultant. At Curren, we source both consulting and contracting under one umbrella to provide true turnkey services.

To that end, hiring an LSRP can entail lengthy relationship and we respect that no one wakes up in the morning and wants to make a bad decision but it happens.We offer a no cost, no obligation consultation on your project needs.As a matter of course we cannot accept every project that arises as we hold responsibility to steer the project to NJDEP mandated timeframes, we cannot simple hand stamp a project to buy time for an RP, as the fees and fines the NJDEP has established for not meeting mandatory timeframes in conjunction with the LSRP program are burdensome.

Our office is available Monday to Friday 8:00 am to 5:00 pm EST to answer your questions.  Toll Free 866-332-3388

In 2009, the New Jersey Legislature in conjunction with the New Jersey Department of Environmental Protection (NJDEP) enacted the Site Remediation Reform Act, which was designed to expedite and better manage contaminated sites in New Jersey.  In essence, the NJDEP privatized the management and environmental cleanup of commercial contaminated properties in New Jersey.    Previously the NJDEP would take a more active or inactive role in the management of these sites depending on how you defined managed.  The new regulations require owners of contaminated sites (responsible party) to retain a LSRP (licensed site remediation professional) to direct said owner in following the applicable NJDEP regulations.  There are steep fines for owners that do not follow these regulations and these fines are meant to ensure compliance.  To establish timely compliance, the NJDEP also has timeframe deadlines for when specific tasks must be completed, such as defining the extent of a plume -  both on and off site, if and when applicable.  Additional incentive for property owners to remediate a property relates to annual fees the NJDEP imposes on owners of the contaminated site. The theory being if you are being charged for owning a contaminated site you will be motivated to remediate and thus remove those fees.

Licensed site remediation professionals" (LSRPs), are private sector professionals authorized to act instead of the NJDEP to evaluate contamination and supervise asd well as approve remediation efforts at industrial/commercial sites. LSRPS’s have education and experience requirements as well as having to pass a proficiency exam and complete on going continuing education relative to environmental regulations.  In short, the LSRPs do what the NJDEP formerly did, and in theory do it more efficiently and expeditiously. At the conclusion of a cleanup, LSRPs issue the site an approval called a "response action outcome" (RAO).  RAO’s, say that the site is in compliance with environmental regulations.  RAO's, replaces what the NJDEP historically had provided for sites, which was an NFA or "No Further Action".  NFA’s while still provided for residential sites, were formerly issued by the NJDEP under the prior system on commercial sites. Commercial sites no longer receive an NFA under these regulations

The NJDEP still has oversight over LSRP’s, although somewhat limited as the regulations allow the LSRP’s to use professional judgement. The LSRP program has both fans and critics.   There are federal and state environmental regulations in the United States, but of all the states only two have an LSRP program (Massachusetts and New Jersey).   Bottom line, if you have interests in commercial property in New Jersey and that is contaminated, you will be retaining an LSRP.