A Phase I ESA is the investigation of a property (usually one being purchased) performed by an environmental professional to determine the potential presence of recognized environmental conditions (REC’s).
When conducting the ESA, the environmental professional follows standards set by ASTM (ASTM E 1527-13) which are aligned with the All Appropriate Inquiry standards in 40 CFR §312.21.
“All appropriate inquiries” is a process of evaluating a property’s environmental conditions and assessing potential liability for any contamination. All appropriate inquiries must be conducted to obtain certain protections from liability under the federal Superfund Law (CERCLA).
The term recognized environmental conditions (REC’s)
means the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property:
(1) due to any release to the environment;
(2) under conditions indicative of a release to the environment; or
(3) under conditions that pose a material threat of a future release to the environment.
De minimis conditions are not recognized environmental conditions.