A Phase I Environmental Site Assessment (ESA) is a process that identifies potential environmental risks associated with a property. It is typically conducted as part of a real estate transaction to provide disclosure to the buyer. Phase I ESAs are also required by some lenders before they provide financing for a property.
In Boston, Massachusetts, Phase I ESAs are known as 21E Environmental Reports, after the 21E clause of the Massachusetts General Law Chapter 21 which covers the cleanup of oil and hazardous materials. Keep reading to learn more about the 21E Environmental Reports throughout this page.
Site Research and Historical Records Review:Â Consultants start by conducting a thorough review of historical records, including property deeds, aerial photographs, maps, and other public documents to identify any historical uses of the property.
Site Inspection:Â A physical inspection of the property is conducted to identify any potential environmental concerns, such as underground storage tanks, hazardous materials storage, or other potential sources of contamination.
Interviews:Â Interviews with current and past property owners, occupants, and neighbors may be conducted to gather additional information about the site’s history and potential environmental concerns.
Regulatory Database Searches:Â Consultants search various databases to identify known environmental issues or regulated activities in the vicinity of the property.
Environmental Conditions Report:Â The gathered information is compiled into an Environmental Conditions Report (ECR), which summarizes the findings, identifies recognized environmental conditions (RECs), and makes recommendations for further investigation if necessary.
ASTM Compliance:Â The Phase I ESA is typically conducted in accordance with ASTM Standard E1527-13, which provides a standardized process for conducting environmental due diligence.
No Further Action or Further Investigation:Â Based on the findings of the Phase I ESA, if no RECs are identified, it may be concluded that no further action is required. However, if RECs are identified, additional investigation or a Phase II ESA may be recommended to assess and remediate any environmental issues.
