Thursday, December 10, 2009

Is Environmental Review Equal To Environmental Site Assessment?

Is Environmental Review the same as a “Phase I” or “Phase 1 Environmental Site Assessment”?

No; a Phase I ESA is not the same as “Environmental Review”. Generally, environmental review considers the impacts of a "project", while environmental site assessment considers the condition of the land.


Environmental Review is usually much broader in scope. Environmental review typically includes issues that are not included in a Phase I ESA, including sensitive ecosystems, wetland impacts, environmental justice, etc. However, there can be some overlap – some environmental reviews might include some of the same inquiries and document reviews that would be included in a Phase I ESA.

Click here if you need more information on Phase I Environmental Assessment

Or click here if you need information on Small Business Administration (SBA) or HUD Phase I ESA requirements

Caltha LLP provides expert consulting services to public and private sector clients nationwide to address Environmental Review and Environmental Impact Assessment.

Caltha Environmental Review Website




Saturday, November 7, 2009

FTA Categorical Exclusion - Environmental Analysis - Environmental Impact Review

The Federal Transit Authority (FTA) has developed specific categories for environmental review in compliance with NEPA. For certain types of projects, FTA may require project proposers to complete sufficient environmental analysis such that FTA can determine that the proposed project meets the criteria for a Categorical Exclusion (CE) under 27 CFR 771.117(d). By meeting these criteria, FTA will meet Categorical Exclusion criteria under NEPA (40 CFR 1508.4), and ultimately neither the proposer nor FTA will be required to conduct an Environmental Assessment as prescribed under 27 CFR 771.119. FTA could then take actions, including providing project funding.

Caltha LLP assists City, County and State project proposers to conduct environmental analyses required to meet FTA requirements for Categorical Exclusions. Caltha also conducts Environmental Assessments and Environmental Impact Assessments, and other Environmental Review requirements.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Thursday, November 5, 2009

HUD Environmental Review Under Neighborhood Stabilization Program

For a single family home that is being demolished and rebuilt, what type of environmental review will be required under Neighborhood Stabilization Program?

According to the Housing & Urban Development (HUD) , the level of environmental review required depends upon the program design and project description. The responsible entity needs to consider the use of the categorical exclusion:

§58.35 Categorical exclusions.
Categorical exclusion refers to a category of activities for which no environmental impact statement or environmental assessment and finding of no significant impact under NEPA is required, except in extraordinary circumstances (see §58.2(a)(3)) in which a normally excluded activity may have a significant impact. Compliance with the other applicable Federal environmental laws and authorities listed in §58.5 is required for any categorical exclusion listed in paragraph (a) of this section.
(a) Categorical exclusions subject to §58.5. The following activities are categorically excluded under NEPA, but may be subject to review under authorities listed in §58.5:
(4)(i) An individual action on up to four dwelling units where there is a maximum of four units on any one site. The units can be four one-unit buildings or one four-unit building or any combination in between; or
(ii) An individual action on a project of five or more housing units developed on scattered sites when the sites are more than 2,000 feet apart and there are not more than four housing units on any one site.
(iii) Paragraphs (a)(4)(i) and (ii) of this section do not apply to rehabilitation of a building for residential use (with one to four units) (see paragraph (a)(3)(i) of this section).


“Individual action” as used in §58.35(a) refers to an individual approval action about the particular dwelling unit(s) and may include new construction, demolition, and/or reconstruction (demolition and new construction). However, note that this categorical exclusion does not apply to rehabilitation of a building for residential use.

A responsible entity (RE) may apply the categorical exclusion at §58.35(a) on an individual application basis, allowing the RE to use this categorical exclusion when an individual applicant is submitting an application for construction, demolition and/or reconstruction of dwelling units. If the RE designs a program where individual applicants will be submitting applications for new construction of up to four dwelling units, then each individual application may be considered to be categorically excluded per §58.35(a)(4)(i). If the RE designs a program where individual applicants will be submitting applications for a project of five more housing units on scattered sites when the sites are more than 2,000 feet apart and there are not more than four housing units on any one site, then each individual application may be considered to be categorically excluded per §58.35(a)(4)(ii).

If the Neighborhood Stabilization Program is clearly designed and intended to develop a specific block/neighborhood or other limited geographic area, then an environmental assessment for the program/area will be required.

Caltha LLP assists project proposers in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website





Revision To E 1527-05 - Phase 1 ESA Environmental Review Standard Practice

In October, the ASTM E 50.02 subcommittee met to discuss the future of the E 1527-05 standard. According to ASTM bylaws, standards must be revised or reballoted every eight years to avoid sunsetting and becoming obsolete. E 1527-05 is approaching its fifth year and a task group has formed to discuss what changes, if any, need to be made to bring the standard in line with current best practices.

One factor that will make revising E 1527-05 more complicated than other E50 standards is that EPA has recognized E 1527-05 as being at least as stringent as the All Appropriate Inquiry (AAI) rule. Because the standard is referenced in a federal rule, EPA must approve of any revisions to E 1527. Depending on the nature of the changes, they may need to go through the federal rule making process, including a mandatory public comments period.

Caltha LLP assists prospective Buyers, Sellers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Friday, October 16, 2009

Vapor Intrusion Screening ASTM E 2600 Mandatory For HUD Lending Programs

The U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing has adopted Tier 1 vapor intrusion (VI) screens (the first of four tiers) under ASTM E 2600 as a mandatory component of Phase I environmental site assessments conducted under the agency's MAP (Multifamily Accelerated Processing) Guide. MAP is the procedure used by hundreds of MAP-approved lenders and HUD field offices throughout the country to process loan applications for Federal Housing Administration multifamily mortgage insurance.

Under the revised policy, a HUD Phase I ESA must include an initial vapor intrusion screen to determine if there is a potential for vapors to occur in the subsurface below existing and/or proposed on-site structures from those hazardous substances, petroleum and petroleum products that consist of VOCs, SVOCs and inorganic volatile compounds.

HUD is one of two Federal lending agencies that that prescribe additional mandatory requirements to a Phase I ESA. The Small Business Administration also has additional enviornmental review requirements for participation in its lending programs.

SBA Environmental Review / RSRA / Phase I Environmental Site Assessment Requirements

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Tuesday, October 6, 2009

EPA Warning On PCB Containing Caulk

US EPA has announced a series of steps that building owners and school administrators should take to reduce exposure to PCBs that may be found in caulk in many buildings constructed or renovated between 1950 and 1978. EPA is also conducting new research to better understand the risks posed by caulk containing PCBs.

As background, polychlorinated biphenyls, or PCBs, are man-made chemicals that persist in the environment and were widely used in construction materials and electrical products prior to 1978. PCBs can affect the immune system, reproductive system, nervous system, and endocrine system and are potentially cancer-causing if they build up in the body over long periods of time. Although Congress banned the manufacture and most uses of PCBs in 1976 and they were phased out in 1978, there is evidence that many buildings across the country constructed or renovated from 1950 to 1978 may have PCBs at high levels in the caulk around windows and door frames, between masonry columns, and in other masonry building materials. Exposure to these PCBs may occur as a result of their release from the caulk into the air, dust, surrounding surfaces, and soil and through direct contact.

If buildings were erected or renovated between 1950 and 1978, EPA is recommending that owners take steps to minimize exposure to potentially contaminated caulk:

  • Cleaning air ducts.
  • Improving ventilation by opening windows and using or installing exhaust fans where possible.
  • Cleaning frequently to reduce dust and residue inside buildings.
  • Using a wet or damp cloth or mop to clean surfaces.
  • Not sweeping with dry brooms and minimizing the use of dusters in areas near potential PCB-containing caulk.
  • Using vacuums with high efficiency particulate air filters.
  • Washing hands with soap and water often, particularly before eating and drinking.
  • Washing children’s toys often.

EPA also recommends testing peeling, brittle, cracking, or deteriorating caulk directly for the presence of PCBs and removing the caulk if PCBs are present at significant levels; or the building owner can assume the PCBs are present and proceed directly to remove deteriorating caulk.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Monday, September 28, 2009

SBA Requirements For Environmental Review - Phase I ESA - Risk Assessment

The U.S. Small Business Administration has announced upcoming changes to its environmental policies and procedures under SOP 50-10-5(B), Lender and Development Company Loan Programs. These changes will be effective October 1, 2009.


For further information, go to Changes to SBA Environmental Review, Risk Assessment and Environmental Investigation Requirements.


The key changes made to the environmental policies for Lenders and Certified Development Companies to participate in SBA lending programs include:



  • Clarification that, in the case of gas stations (NAICS code 447), the Environmental Investigation must begin with a Phase I;

  • On-site dry cleaners in operation for more than five years must undergo a Phase II Environmental Site Assessment, in addition to a Phase I (which would be required due to the NAICS code match);

  • For special use facilities (daycare or child care centers, nursery schools), revision to the date of construction for conducting a lead risk assessment for lead-based paint from 1978 to 1980;

  • Revised definition of "environmental questionnaire" to reflect that if the current owner or operator of the property will not sign the questionnaire, it cannot be used, and the lender must then, at a minimum, obtain a Transaction Screen;

  • Acknowledgment that the SBA will recognize a Phase II ESA conducted "in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a release;"

  • Establishing a shelf life of 1 year for the Records Search with Risk Assessment; and

  • Minor clarifications to the list of NAICS codes that trigger Phase I ESA requirement.


The new SOP also reflects any policy and procedural notices issued between January 1, 2009 and June 30, 2009. In addition, the SBA has determined that updating the SOP every six months is no longer necessary; in the future SBA will update its SOP every 12 months.


Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements.

Click here for more information on SBA Environmental Review and Assessment Services



For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website




Thursday, September 24, 2009

SBA Records Search with Risk Assessment RSRA Services

The Small Business Administration (SBA) procedures under SOP 50-10(5) Lender and Development Company Loan Programs under certain circumstances requires Lenders to conduct a Records Search with Risk Assessment (RSRA) in order to evaluate the likelihood of contamination at the Subject Property and neighboring properties. If the RSRA concludes that there exists a high risk for contamination, additional environmental investigation may be required.


Caltha LLP provides cost-effective Records Search with Risk Assessment (RSRA) services to SBA Lenders nationwide.

For further information on Caltha's services, to go:

SBA Environmental Assessment - Environmental Review Services

Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Monday, September 21, 2009

Changes to SBA Environmental Assessment and Review Requirements

The U.S. Small Business Administration has announced upcoming changes to its environmental policies and procedures under SOP 50-10-5(B), Lender and Development Company Loan Programs. These changes will be effective October 1, 2009. The key changes made to the environmental policies for Lenders and Certified Development Companies to participate in SBA lending programs include:

  • Clarification that, in the case of gas stations (NAICS code 447), the Environmental Investigation must begin with a Phase I;
  • On-site dry cleaners in operation for more than five years must undergo a Phase II Environmental Site Assessment, in addition to a Phase I (which would be required due to the NAICS code match);
  • For special use facilities (daycare or child care centers, nursery schools), revision to the date of construction for conducting a lead risk assessment for lead-based paint from 1978 to 1980;
  • Revised definition of "environmental questionnaire" to reflect that if the current owner or operator of the property will not sign the questionnaire, it cannot be used, and the lender must then, at a minimum, obtain a Transaction Screen;
  • Acknowledgment that the SBA will recognize a Phase II ESA conducted "in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a release;"
  • Establishing a shelf life of 1 year for the Records Search with Risk Assessment; and
  • Minor clarifications to the list of NAICS codes that trigger Phase I ESA requirement.

The new SOP also reflects any policy and procedural notices issued between January 1, 2009 and June 30, 2009. In addition, the SBA has determined that updating the SOP every six months is no longer necessary; in the future SBA will update its SOP every 12 months.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Wednesday, May 6, 2009

Phase 1 Environmental Assessment - Phase One ESA

A Phase 1 Environmental Site Assessment (ESA) conducted using ASTM E 1527-05 is intended to identify “Recognized Environmental Conditions” (or RECs) associated with a property. Recognized Environmental Conditions are defined as “the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a [future] release”. In short, a Phase 1 ESA addresses releases hazardous substances and petroleum products.

[Read more about Landowner Liability Protections]
[Read more about why Sellers might consider performing a Phase 1 ESA]

Caltha LLP provides “qualified professionals” to conduct Environmental Due Diligence on industrial and commercial properties. Caltha’s assessment staff are also qualified to conduct environmental compliance assessments, and environmental liability assessments. These additional assessments can be conducted concurrently with a Phase 1 ESA, thus reducing both cost and time.

What does a Phase 1 Environmental Site Assessment cost?
Click here to go to Caltha’s on-line Environmental Due Diligence quote request page. You will be prompted to answer a few basic questions regarding the property(ies) you wish to have assessed. Once a request is completed and submitted, you should receive a quote within 24-hours.

Caltha conducts Phase 1 Environmental Assessments the following States:
[Click on a State to request information]

Alabama Phase 1 Environmental Site Assessment
Alaska Phase 1 Environmental Site Assessment
Arkansas Phase 1 Environmental Site Assessment
California Phase 1 Environmental Site Assessment
Connecticut Phase 1 Environmental Site Assessment
Florida Phase 1 Environmental Site Assessment
Georgia Phase 1 Environmental Site Assessment
Illinois Phase 1 Environmental Site Assessment
Indiana Phase 1 Environmental Site Assessment
Iowa Phase 1 Environmental Site Assessment
Kansas Phase 1 Environmental Site Assessment
Kentucky Phase 1 Environmental Site Assessment
Louisiana Phase 1 Environmental Site Assessment
Maine Phase 1 Environmental Site Assessment
Massachusetts Phase 1 Environmental Site Assessment
Michigan Phase 1 Environmental Site Assessment
Minnesota Phase 1 Environmental Site Assessment
Mississippi Phase 1 Environmental Site Assessment
Nebraska Phase 1 Environmental Site Assessment
Nevada Phase 1 Environmental Site Assessment
New Jersey Phase 1 Environmental Site Assessment
New York Phase 1 Environmental Site Assessment
North Carolina Phase 1 Environmental Site Assessment
North Dakota Phase 1 Environmental Site Assessment
Ohio Phase 1 Environmental Site Assessment
Oklahoma Phase 1 Environmental Site Assessment
Oregon Phase 1 Environmental Site Assessment
Pennsylvania Phase 1 Environmental Site Assessment
South Carolina Phase 1 Environmental Site Assessment
South Dakota Phase 1 Environmental Site Assessment
Tennessee Phase 1 Environmental Site Assessment
Texas Phase 1 Environmental Site Assessment
Utah Phase 1 Environmental Site Assessment
Virginia Phase 1 Environmental Site Assessment
Washington Phase 1 Environmental Site Assessment
Wisconsin Phase 1 Environmental Site Assessment

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Tuesday, March 10, 2009

Environmental Site Assessment - Environmental Due Diligence

A Phase I ESA conducted using ASTM E 1527-05 is intended to identify “Recognized Environmental Conditions” (or RECs) associated with a property. Recognized Environmental Conditions are defined as “the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a [future] release”. In short, a Phase I ESA addresses releases hazardous substances and petroleum products.

[Read more about Landowner Liability Protections]
[Read more about why Sellers might consider performing a Phase I ESA]

Caltha LLP provides “qualified professionals” to conduct Environmental Due Diligence on industrial and commercial properties. Caltha’s assessment staff are also qualified to conduct environmental compliance assessments, and environmental liability assessments. These additional assessments can be conducted concurrently with a Phase I ESA, thus reducing both cost and time.

What does a Phase I Environmental Site Assessment cost?
Click here to go to Caltha’s on-line Environmental Due Diligence quote request page. You will be prompted to answer a few basic questions regarding the property(ies) you wish to have assessed. Once a request is completed and submitted, you should receive a quote within 24-hours.

[See a list showing in which States Caltha LLP worked recently]

Caltha conducts Phase 1 Environmental Assessments the following States:
[Click on a State to request information]

Alabama Phase I Environmental Site Assessment
Alaska Phase I Environmental Site Assessment
Arkansas Phase I Environmental Site Assessment
California Phase I Environmental Site Assessment
Connecticut Phase I Environmental Site Assessment
Florida Phase I Environmental Site Assessment
Georgia Phase I Environmental Site Assessment
Illinois Phase I Environmental Site Assessment
Indiana Phase I Environmental Site Assessment
Iowa Phase I Environmental Site Assessment
Kansas Phase I Environmental Site Assessment
Kentucky Phase I Environmental Site Assessment
Louisiana Phase I Environmental Site Assessment
Maine Phase I Environmental Site Assessment
Massachusetts Phase I Environmental Site Assessment
Michigan Phase I Environmental Site Assessment
Minnesota Phase I Environmental Site Assessment
Mississippi Phase I Environmental Site Assessment
Nebraska Phase I Environmental Site Assessment
Nevada Phase I Environmental Site Assessment
New Jersey Phase I Environmental Site Assessment
New York Phase I Environmental Site Assessment
North Carolina Phase I Environmental Site Assessment
North Dakota Phase I Environmental Site Assessment
Ohio Phase I Environmental Site Assessment
Oklahoma Phase I Environmental Site Assessment
Oregon Phase I Environmental Site Assessment
Pennsylvania Phase I Environmental Site Assessment
South Carolina Phase I Environmental Site Assessment
South Dakota Phase I Environmental Site Assessment
Tennessee Phase I Environmental Site Assessment
Texas Phase I Environmental Site Assessment
Utah Phase I Environmental Site Assessment
Virginia Phase I Environmental Site Assessment
Washington Phase I Environmental Site Assessment
Wisconsin Phase I Environmental Site Assessment

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Saturday, March 7, 2009

Conducting Phase I ESA on Forest - Rural Lands - Amended Rules

Conducting environmental site assessments for large tracts of forested or rural lands presents a challenge to strict adherence to the ASTM Standard Method for Phase I environmental site assessments (ASTM E 1527-05).

Recognizing this, in December 2008, the U.S. Environmental Protection Agency (“EPA”) issued a final rule amending the standards and practices for “All Appropriate Inquiries” under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). The amendments now allow the use of ASTM E2247-08 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.” The rule will benefit persons or entities purchasing large tracts of forested lands or large rural properties that may intend to claim landowner liability protections as innocent landowners, bona fide prospective purchasers, or contiguous property owners.

The rule applies to any entity conducting a site characterization or assessment on a large forested or rural property with a brownfields grant and will become effective on March 23, 2009. EPA also published a separate proposed rule proposing the same change to the All Appropriate Inquiries regulations.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Tuesday, February 10, 2009

SBA Environmental Review Requirements - Phase I ESA Requirement

In 2008, the U.S. Small Business Administration (SBA) revised its procedures under the Lender & Development Companies Loan Programs (SOP 50-10(5)). Some of the key changes are procedures related to environmental assessments detailed under the Environmental Policies & Procedures requirements.

The goal of the policy is to identify properties that have a higher risk for environmental contamination, and to assure that if contamination is present, it is addressed in a manner that reduces the potential liability of SBA and the lender. The basic structure is SBA requires an Environmental Investigation of ALL COMMERCIAL property loans it is securing; The level of the Environmental Investigation will depend on the risks for contamination.

The determination of the appropriate level of Environmental Investigation will follow a formal process path, so that Lenders can quickly determine what documentation SBA will require for individual loans. At a minimum, the investigation will require an evaluation of current and past uses, and completion of an Environmental Questionnaire. The SBA Environmental Policy also provides specific guidance on steps required based on the results of the environmental investigation.

Here are two links for more information:

Summary of SBA Environmental Review Requirements

Subsequent Revision to SBA Environmental Review Requirements

Caltha LLP assists prospective Buyers and their Lenders in meeting SBA environmental review requirements. To requiest a quote on-line, go to Caltha Environmental Assessment Quote Web Page.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Tuesday, January 20, 2009

User Requirements Under All Appropriate Inquiry

On November 1, 2005, USEPA finalized the requirements for due diligence which meet the “all appropriate inquiry” requirement. To be eligible for LLPs, land owners must have completed these requirements prior to purchasing/acquiring the property:

Complete all User requirements, including:

  • Prepare a Phase I Environmental Site Assessment
  • Conduct review of judicial and title records for applicable Activity & Use Restrictions (AULs)
  • Demonstrate compliance with any AULs
  • Complete User Questionnaire

Caltha LLP assists clients nationwide in conducting All Appropriate Inquiry during the acquisition of commercial and industrial properties. To request a quote, go to Caltha Site Assessment Quote.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Monday, January 12, 2009

Environmental Due Diligence – What Is Value and Cost of Information?

In most mergers or acquisitions, there is a transfer of information from the Seller to the Buyer. The Buyer begins with little or no information and over time collects data and information that will be used to base their decisions. Ideally, this information would be complete and would address all the needs of the Buyer so they can make optimal decisions.

In practice, this ideal is rarely met. Buyers will always be making decisions based on incomplete and sometimes inaccurate information. Therefore Buyers will often invest in gathering more or better information to improve their chances of making good decisions. Because Buyers are investing time and money upfront in order to reduce the changes of making bad (i.e., costly) decisions later, a Cost-Benefit relationship can be calculated on the value of collecting information.

Nowhere is the value of information more critical than in Environmental Due Diligence. Some information can be gathered at fairly low cost, such as a Phase I environmental site assessment. However, if environmental issues are identified, costs to collect further information can be high, and therefore the value of gathering the information must be put into context with overall decision-making processes.

Two questions help frame the value of information:

Depending on what I learn, would I make a different decision?

What are the costs associated with potential outcomes if I proceed without further information?

By considering the benefit of having the information in relation to the costs associating with collecting it, Buyers can make an informed decision on whether or not gathering more information is cost-effective.

Caltha LLP supports clients nationwide in evaluating and quantifying environmental liabilities and conducting environmental due diligence.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Friday, January 9, 2009

Environmental Assessment Scope - What If Boundaries Are Not Defined?

For some assessments, the boundaries used to define the scope of the assessment are not explicitly defined. For example, an environmental assessment report might state “only conditions considered to represent a significant risk are discussed”, or “only conditions representing a significant financial liability are addressed”. In both cases, the meaning of “significant” is key to defining the boundaries of the assessment. Other assessments may appear to be more analytical, “only conditions representing greater than a $100,000 financial liability are addressed”. In this case, and those above, it is implied that a wider range of issues were considered and only a subset were documented. Without documentation of the wider ranges of issues, a reviewer is left not knowing what the boundaries of the assessment really were.

What if the boundaries are not addressed in a report? The most problematic situation for a reviewer will be an assessment report that does not document its boundaries. In this case, the conclusions of assessment can not be considered valid, although the report itself may include valid information. Unfortunately, it takes time to review and understand this level of detail; a reviewer relying on an executive summary will typically not gain this level of understanding of the scope of the assessment.

Caltha LLP assisting clients in planning and conducting their environmental assessment. Caltha also provides technical review services for existing assessment documents.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website



Thursday, January 8, 2009

Environmental Assessments - Setting Assessment Boundaries

Whether explicitly communicated or not, all assessments are constructed within a set of boundaries. This is true whether the assessment is Phase I site assessment, a due diligence assessment, a compliance audit or an environmental impact assessment. Whether you are conducting, using or reviewing an environmental assessment, you need to understand those boundaries and to assure that the boundaries being used are appropriate to address the issues that the assessment is intended to address.

What are boundaries? Simply stated, boundaries for the assessment will set the limits on what types of data or information are reviewed, what types of potential impacts are being considered, and what results are being documented.
Why are boundaries important? For each assessment, boundaries are important to understand because they define how in-depth the assessment is and what information the assessment considered.

For anyone wishing to use the results of the assessment, it will be critical to understand the boundaries used to assure that the key questions important to the reviewer are covered within the scope of the assessment.

Boundaries are also important from the standpoint of someone preparing an assessment. Because assessments will need to be conducted within a specified schedule and budget, setting boundaries is a critical step in defining what the assessment will consider. It is important to recognize that defining the boundaries is conducted BEFORE the assessment is actually performed, and does not take into account the information that will subsequently be gathered and reviewed. Therefore, it is important that the assessment boundaries be periodically revisited to assure they align with any newly uncovered information.

For the reviewer, assessment boundaries are sometimes well documented. For environmental impact assessments, this may be contained in a separate “scoping document”. Other assessments may detail the assessment boundaries within the assessment report, or may refer to a standardized assessment approach such as ASTM E 1527-05.

Caltha LLP assists clients in planning and conducting many types of environmental assessments, including environmental due diligence and environmental reviews.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Wednesday, January 7, 2009

Activity and Use Restrictions (AULs) Under ASTM E 1527-05

Although consideration of Activity & Use Restrictions (AULs) has been included in previous ASTM methods, the ASTM E 1527-05 standard increased the importance of these restrictions. AULs are explicit restrictions on the uses and/or activities that are allowed on a property. The existence of an AUL should be considered an indication that the property is contaminated and not suitable for unrestricted use. For example, an “Industrial Use Only” restriction may indicate that contamination was partially cleaned up to meet industrial standards. Restrictions could also limit physical changes to the buildings, parking lots, etc.

ASTM E 1527-05 places the responsibility for identifying applicable AULs in title or judicial records on the prospective Buyer. To be eligible for LLPs, a property owner must also demonstrate that they have complied with all AULs.

Caltha LLP helps prospective Buyers research and evaluate AULs at commercial and industrial properties. To request a quote, go to Environmental Due Diligence Quote Page.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Tuesday, January 6, 2009

Landowner Liability Protections Under the Small Business Liability Relief and Brownfields Revitalization Act

Three forms of landowner liability protections (LLPs) are defined by the Small Business Liability Relief and Brownfields Revitalization Act of 2002. It is important to note that these LLPs do not infer that a property does not need to be investigated and/or remediated – they simply place the financial liability on others, usually the previous landowner or an adjacent landowner. The current landowner will need to cooperate with all activities required on the property, which could include limitations on the use of their property.

Innocent landowner:
Applies to prospective purchasers, governmental agencies acquiring properties through eminent domain or condemnation, or persons acquiring property by inheritance or bequest.

Bona fide prospective purchaser:
Applies to any prospective purchaser; differs from an “innocent landowner” because although both require “all appropriate inquiry” prior to purchase, bona fide prospective purchaser protection can apply even if evidence of contamination is discovered on the property. An innocent landowner protection only applies if there is no evidence found that contamination may exist prior to purchase.

Contiguous property owner:
Applies to property owner who’s property is contaminated due to releases from an adjacent property, owned by a separate party.

Caltha LLP assists prospective purchasers of commercial and industrial real estate to preserve their Landowner Liability Protections.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website


Monday, January 5, 2009

Landowner Liability Protections and All Appropriate Inquiry

Under many conditions, land owners can be held responsible for the investigation and clean up costs associated with contamination on their property. This liability exists even if the current property owner did not cause or contribute to the problem or was unaware that the problem existed when the property was purchased. This liability could even extend to cleaning up contamination that came onto their property from adjacent lands.

In 2002, the Small Business Liability Relief and Brownfields Revitalization Act developed certain conditions under which businesses could be protected from these liabilities, termed Landowner Liability Protections, or LLPs. One of the key requirements for businesses wishing to eligible for LLPs is that “all appropriate inquiry” was conducted prior to purchasing the property to determine if known or suspected contamination exists.

More information on LLPs and “All Appropriate Inquiry”

Caltha LLP conducts All Appropriate Inquiry on behalf of prospective Buyers. For a quote, go to Caltha LLP Environmental Assessment On-line Quote Page.


For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website