Tuesday, December 21, 2010

When Does A Phase 1 Need to Be Updated? Why Update My ESA Report?

Why Update An Environmental Site Assessment Report?

A Phase 1 ESA is a review of current and historic data sources to assess the potential for contamination on a specific property. Overtime, the information available to conduct this assessment increases. Therefore, a property that had no evidence of contamination issues (or "recognized environmental conditions") during a Phase 1 environmental assessment can potentially have significant issues identified in subsequent assessments.

How Often Does A Phase 1 ESA Report Have To Be Updated?

The Standard Method used to conduct Phase 1 environmental assessments (ASTM E 1527-05. Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessment) specifies how often a Phase 1 ESA must be updated to remain valid.

1. After 180 days (6 months) the ESA is no longer valid, and portions of the ESA report must be updated, including conducting on-site inspection.

2. After 1 year, all portions of the ESA report must be updated.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in all States in meeting Due Diligence, Environmental Site Assessment and Environmental Records Search and Risk Assessment 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, December 10, 2010

Understanding Lender Environmental Liabilities and Environmental Review Requirements

Understanding Lender Environmental Liabilities and Environmental Review Requirements
Minnetonka, Minnesota
January 19, 2011, 9 am to 1 pm


This half day training seminar is being provided for individuals who have responsibilities for managing liabilities associated with commercial lending, and those needing to meet environmental due diligence requirements prescribed by the U.S. Small Business Administration (SBA).

Agenda

Legal and Regulatory Aspects of Lender Environmental Liability
Lenders need to be aware of potential environmental liability associated with the past use of property. Federal and state environmental laws impose financial obligations, including investigation and response costs, on parties who own or operate sites where there has been a leaking underground tank or a release of hazardous substances. Lenders need to be aware of liability arising from impacts to soil and groundwater and the emerging issues associated with vapor intrusion. This session will focus on due diligence review, the All Appropriate Inquiry standard and liability assurances that are available to Lenders and Borrowers to address these liability concerns.

Lender Liability Protection and Due Diligence Tools
A number of tools are available to lenders to help evaluate and manage potential risks. These range from simple Environmental Questionnaires to more extensive environmental reviews. This session will provide an overview of the typical assessment tools, including transaction screening, Phase 1 and 2 environmental site assessments. The session will also cover a specific type of assessment process required by SBA, a “Records Search With Risk Assessment”. Finally, the session will discuss the use of Reliance Letters by Lenders and SBA.

Overview of SBA Environmental Policies and Procedures
Since 2008, SBA has been much more prescriptive in the required level of environmental review to participate in SBA lending programs. This session will provide an overview of environmental review requirements in SBA Standard Operating Procedure SOP 50-10(5), which applies to 504 Loan programs, and SOP 50-51(3), which defines the Post-default Environmental Investigations required by SBA.

Case Studies
During the final session, case studies will be presented to emphasize the key concepts of Lender Environmental Liabilities.

For further information go to:
Understanding Lender Environmental Liabilities and Environmental Review Requirements



Caltha LLP, a leading provider of environmental due diligence services to the banking industry
Minneapolis, MN, Pine River, MN, Eau Claire, WI, Tucson, AZ
www.calthacompany.com

Monday, December 6, 2010

Small Business Review Panel Of CERCLA Financial Responsibility Requirements For Hard Rock Mining

The U.S. Environmental Protection Agency (EPA) is seeking self nominations from small businesses to participate in a Small Business Advocacy Review (SBAR) panel on a proposed rule that would establish financial responsibility requirements for classes of facilities within the hard rock mining industry. The requirements will be developed under the Comprehensive Environmental Response, Compensation and Liability Act (Superfund).

The Regulatory Flexibility Act requires EPA to establish a federal panel for rules that may have a significant economic impact on a substantial number of small entities. The SBAR panel will also include representatives from the Small Business Administration, the Office of Management and Budget and EPA.

The panel will ask a selected group of Small Entity Representatives (SERs), to provide advice and recommendations on the proposed rule to the panel. The agency is seeking self-nominations directly from small entities that may be subject to the rule requirements. Self-nominations may be submitted through December 20, 2010.

Caltha LLP assists Sellers, 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, December 4, 2010

SBA Revised Environmental Assessment, Post-default Environmental Investigation Requirements

The US Small Business Administration (SBA) has revised its Standard Operating Procedure (SOP) related to post-default environmental risk management. This procedure is contained in SOP 50 51 3, and became effective November 15, 2010. The revised SOP defines when and how a Post-default Environmental Investigation is conducted 1) before taking title to a property, and 2) before taking control of a business using hazardous substances.

The type and scope of the Post-default Environmental Investigation required varies depending on the risk of contamination, and SOP 50 51 3 provides the minimum standards. All Transaction Screen, Phase I and Phase II Environmental Site Assessments must be performed by an Environmental Professional and be accompanied by a Reliance Letter.

The SOP defines the process to be followed, which includes:
  • Determining whether any underground liquid fuel storage tanks are located on the Property,
  • Determining the NAICS codes for the Property's uses since the SBA Loan was funded, and whether any of the NAICS codes match codes on the list of NAICS Codes of Environmentally Sensitive Industries,
  • Completing any additional testing, record searches or other inquiries recommended by the Environmental Professional who conducted the initial investigation.

In addition, if taking control of a business that handles hazardous substances is contemplated, the Post-default Environmental Investigation may also include an environmental audit to determine whether the business has the required environmental permits and is in compliance with applicable environmental laws. In some cases, testing of fixtures and equipment related to the operation of the business, including underground storage tanks, lines and related equipment may also be required.

If the Post-default Environmental Investigation Report concludes that the property is contaminated, SBA's prior written approval must be obtained. Regardless of the conclusions reached in the Post-default Environmental Investigation Report, SBA's prior written approval must be obtained prior to taking control of a business that handles hazardous substances.


Caltha LLP is a leading provider of environmental services to Lenders, and especially to Lenders needing to conform to SBA environmental review procedures. Caltha provides transaction screens meeting ASTM E 1528-06, Phase 1 Environmental Site Assessments meeting ASTM E 1527-05, Phase 2 investigations, and SBA Records Search With Risk Assessment RSRA reports, all certified by a qualified environmental professional.

For further information or to request a quote, go to:

Caltha Environmental Site Assessment & Risk Assessment