HISTORY OF ENVIRONMENTAL SITE ASSESSMENTS

Environmental Site Assessments (ESAs) began being conducted in the 1970s largely as a result of Love Canal environmental disaster in upstate New York. Studies resembling current Phase I ESAs were being conducted to assess risks associated with ownership of commercial properties which had or potentially used, stored or disposed of hazardous substances or toxic chemical. With the passing of the creation of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980, the demand increased dramatically for ESAs. The U.S. courts decided that completion of an ESA established liability protection known as the Innocent Landowner Defense from potential cleanup costs associated with the release of hazardous substances by a previous property owner. Real estate buyers, sellers, and lenders, out of fear of being held responsible for remediation of contamination caused by a prior owner, started requiring ESAs for property transactions.

The American Society for Testing and Materials (ASTM) E1527 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process was developed in 1993 under the jurisdiction of ASTM Committee E50 on Environmental Assessments and Subcommittee E50.02 on Commercial Real Estate Transactions. Later in 1998 the necessity of performing a Phase I ESA was mandated by the passing the Superfund Cleanup Acceleration Act of 1998. This act requires purchasers of commercial property to perform a Phase I ESA that meets the specific standard of ASTM E1527.