A phase I is the best insurance at finding out what you might be getting themselves into before you complete the transaction. It also limits your liability, if something be discovered later that you were unaware of. A Phase I site assessment just makes good business sense, and should be part of everyone’s environmental due diligence process.
The main purpose of a Phase I is to evaluate the presence of a Recognized Environmental Condition (REC) at or near the property.
A Phase I site assessment is conducted to look for releases to the environment, or potential releases to the environment – of hazardous substances or petroleum products on or in the vicinity of the property in question. These releases would be a Recognized Environmental Condition (REC).
A REC does not mean there is confirmed contamination, simply that it is possible. A Phase I ESA identifies RECs, and the report may recommend a Phase 2 ESA be conducted to confirm and evaluate the presence, amounts and effects of contamination on site and threat of a release to the environment.
Recognized Environmental Condition Definition as per ASTM
The ASTM E1527-21 standard defines a recognized environmental condition (REC) as: The presence or likely presence of any hazardous substance or petroleum product on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, groundwater, or surface water of the Subject Site.
To simplify, a REC is the existence or probable existence of a hazardous substance within a property, under one or more of three ASTM-defined scenarios.
- The REC is due to a release into the environment.
- The REC is under conditions indicative of a release to the environment.
- The REC poses a significant threat of a forthcoming release to the environment.
Most people associate RECs with leaking Underground Storage Tanks (UST) that were not properly closed, or property that was once a dry cleaner or a car repair shop, where toxic chemicals may have been used and not disposed of properly. However, RECs aren’t limited to just these types of properties.
Some examples of commonly seen RECs are:
- Historical gasoline stations facilities where underground storage tanks.
- Auto repair shops typically utilize and store hazardous substances.
- Current and historical dry cleaning businesses operating on-site.
- Historical plating facilities where chromium, other metals, solvents and degreasers have been utilized.
- Foundries, manufacturing facilities, or other heavy industrial complexes.
Are you looking into a Phase I, or concerned about the results?
RSB has conducted thousands of Phase I environmental assessments across the US.
To learn more click here or give us a call at 832-761-4559 / info@rsbenv.com.
Frequently Asked Questions
What is a Recognized Environmental Condition (REC) in a Phase I Environmental Site Assessment (ESA)?
A Recognized Environmental Condition (REC) is defined by the ASTM E1527-21 standard as the presence or likely presence of hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a release into the environment. This includes contamination that may affect soil, groundwater, or surface water.
Does a REC indicate confirmed contamination on a property?
No, a REC does not necessarily mean there is confirmed contamination. It indicates the possibility of contamination based on the current or historical use of the property. If a REC is identified, further investigation, such as a Phase II ESA, may be recommended to confirm and assess the extent of contamination.
What are some common examples of RECs?
Common examples of RECs include properties with leaking underground storage tanks (USTs), historical gasoline stations, auto repair shops, dry cleaning businesses, and industrial facilities like foundries or manufacturing plants. These types of properties often involve the use or storage of hazardous substances that could potentially contaminate the environment.
Why is identifying a REC important during environmental due diligence?
Identifying a REC is crucial during environmental due diligence because it helps prospective buyers, lenders, and investors understand potential environmental liabilities associated with a property. Recognizing a REC early in the process allows for informed decision-making and can help avoid costly cleanup efforts and legal liabilities in the future.
What steps should be taken if a REC is identified in a Phase I ESA?
If a REC is identified in a Phase I ESA, the report may recommend conducting a Phase II ESA, which involves sampling and laboratory analysis to confirm the presence and extent of contamination. Depending on the findings, further actions such as remediation or monitoring may be necessary to address the environmental risks.
