Phase I reports assist users, including stakeholders, property owners, investors, municipalities, developers, and sellers in identifying potential or existing environmental contamination liabilities. Environmental Site Assessments (ESAs) evaluate both land and property improvements. The Comprehensive Environmental Response, and Compensation Liability Act (CERCLA) (42 USC § 9601), outlines the Landowner Liability Protections (LLPs) enabling the federal government to address hazardous substance releases and hold Potentially Responsible Parties (PRPs) accountable. The Phase I ESA Process allows users to qualify for the LLPs. Innocent landowners, contiguous property owners, or bona fide prospective purchasers are the categories of landowners that can be eligible for the LLPs under CERCLA by meeting the required inquiries and obligations.

Innocent landowners have no knowledge of contamination at the time of purchase. Contiguous property owners own land that is affected by contamination, but they are not the source of the contamination. Bona fide prospective purchasers are aware of contamination but still meet CERCLA protections.

The first Phase I ESA standard was developed by ASTM in 1993 with the most recent update in 2021. The new ASTM E1527-21 clarifies the Recognized Environmental Conditions (REC) definitions and introduces a multi-step process for research, including enhanced historical research and emerging contaminants like PFAS. The Phase I ESA scope includes site reconnaissance, records review, and interviews with relevant parties. The final report features photographs, maps, database findings, and personnel qualifications. It is the Users responsibility to check title records for environmental liens and AULs, assess the relationship between the purchase price and contamination risks, and indicate if they have specialized knowledge of RECs. The Phase I ESA will assess RECs, Historical RECs (HRECs), and Controlled RECs (CRECs).

Phase I ESAs help determine the presence or absence of contamination on a property. When hazardous substances or petroleum products are present or likely present due to a release or conditions indicative of a release, a REC is identified. While HRECs refer to properties where contamination existed in the past but has since been remediated to meet current applicable closure levels, making them no longer a concern. CRECs involve properties where contamination is still present but is being managed through controls or mitigation measures to limit exposure or risk. These outcomes guide property owners and stakeholders in assessing the level of environmental risk and determining the necessary next steps.

During a Phase I ESA, historical operations are evaluated through site reconnaissance, research, and interviews. Resources like fire insurance maps and aerial photos are used to gather data. A thorough Phase I ESA helps stakeholders understand environmental risks and ensure compliance.

When addressing RECs, identified HRECs typically don’t require further investigation, while CRECs require adherence to controls. RECs often prompt additional investigation and Phase II ESAs or Limited Subsurface Investigations (LSIs) confirm contamination through testing, focusing on areas with identified or suspected contamination.