Phase I & Phase II
Environmental Site Assessments
If you're acquiring commercial property and want to keep the CERCLA innocent landowner defense intact, a Phase I ESA isn't optional. Here's what the current ASTM standard actually requires, when a Phase II is triggered, and where we fit in as the analytical lab behind the consultant.
Due diligence with regulatory teeth
An Environmental Site Assessment is the standardized due-diligence process that protects a property buyer (or refinancing owner) from CERCLA cleanup liability under the All Appropriate Inquiries (AAI) Rule. The current standard, ASTM E1527-21 for Phase I, was finalized in 2021 and replaced the long-standing 2013 version. EPA recognized it under AAI in 2024, which means using the older standard now exposes your client.
The basic question a Phase I answers: is there evidence that this property has been impacted by hazardous substances or petroleum products? If the answer is "maybe" or "yes," that's a Recognized Environmental Condition (REC), and you're probably looking at a Phase II to investigate. We come in at the Phase II stage as the analytical lab behind your consultant or LSRP.
What ASTM E1527-21 requires
The Phase I is a non-intrusive desk-and-site review. No sampling, no soil work. Its job is to identify whether further investigation is needed.
Standard scope
Records review: Federal, state, tribal, and local environmental databases for the property and surrounding area (the "search radius").
Site reconnaissance: Walk-through documenting current and past uses, storage tanks, drums, staining, distressed vegetation.
Interviews: Current and past owners, occupants, operators where reasonably available.
Historical review: Sanborn maps, aerial photos, city directories, title records going back to first developed use.
Key 2021 changes
"Significant data gap": New formal definition requiring explicit identification and discussion in the report.
Historical use research: Stricter requirements for documenting adjacent properties, not just the subject site.
PFAS handled separately: Per- and polyfluoroalkyl substances are NOT covered under E1527-21. Some buyers commission a separate PFAS review.
Shelf life: 180 days from the earliest of records review, site visit, or interviews. Components older than 1 year cannot be updated.
The three condition findings
REC (Recognized Environmental Condition): Likely presence of hazardous substances or petroleum on the property. Phase II usually follows.
HREC (Historical REC): Past release that has been addressed to satisfaction of regulators. No further action expected.
CREC (Controlled REC): Past release addressed but with restrictions in place (deed restriction, AOC, etc). Conditions must be maintained.
Deliverable
A signed report by an Environmental Professional that meets all AAI elements. The cover letter typically states whether RECs, HRECs, or CRECs were identified and whether further investigation is recommended.
For commercial real estate deals, the report goes to the lender as part of underwriting, the buyer's counsel, and the title file.
When a Phase II is triggered
Phase II is the sampling and analysis step. If the Phase I identified a REC, you'll usually do this next. ASTM E1903 is the framework, but the actual scope is heavily site-specific.
Common triggers
Historical use: Former dry cleaner, gas station, auto repair, manufacturing, machine shop.
Adjacent property impacts: Upgradient release that may have migrated.
USTs / ASTs: Underground or aboveground storage tanks identified in records.
Visible evidence: Staining, distressed soil, unexplained fill, suspect drums.
Vapor intrusion concerns: Documented groundwater contamination within the vapor pathway.
Typical Phase II scope
Soil sampling: Direct-push (Geoprobe) borings to characterize depth and lateral extent.
Groundwater sampling: Monitoring well installation and screening for site-specific analytes.
Soil vapor / sub-slab vapor: When vapor intrusion is a concern under the NJDEP Vapor Intrusion Guidance.
Indoor air sampling: Summa canister sampling where occupied buildings overlie suspected plumes.
Common analyte suites
VOCs (EPA 8260): Solvents, fuel constituents, dry cleaner residue.
SVOCs (EPA 8270): PAHs, phenols, plasticizers.
RCRA-8 metals (EPA 6010 / 7000-series): Lead, arsenic, mercury, chromium, etc.
PCBs (EPA 8082): Electrical equipment legacy contamination.
TPH (EPA 8015B): Total petroleum hydrocarbons.
What we provide
Analytical work on the soil, groundwater, soil vapor, and indoor air samples your consultant or LSRP collects. NJ NELAP-certified reporting suitable for site remediation submissions.
Standard 10 to 15 business day TAT on full Phase II analyte panels. Rush available when the project schedule needs it.
The transactions and projects that drive ESA work
Commercial real estate buyers
Every commercial acquisition involving outside financing. Lenders typically require a Phase I before closing. The cost of skipping it is the loss of innocent-landowner protection.
Lenders & CMBS
Commercial mortgage underwriting almost always conditions funding on a clean Phase I or, where RECs exist, a satisfactory Phase II.
Developers
Land acquisition for redevelopment, particularly when the parcel was previously industrial or commercial. Vapor intrusion is the most common deal-killer.
LSRPs (NJ)
Licensed Site Remediation Professionals overseeing NJDEP-regulated cleanups. Phase I/II work is often the entry point to a longer SRRA case.
Brownfield programs
Properties entering federal or state Brownfields programs to access cleanup incentives and liability protections.
Estate planning & trusts
Property transfers within estates, partnerships, or trusts where successor liability is a concern.
Running a Phase II?
If you're a consultant or LSRP and need lab work on a Phase II sampling campaign, we can typically scope and quote within a business day. We work directly with the field crew on chain-of-custody and bottle orders.