What is the purpose of a Phase I Environmental Site Assessment?

The purpose of a Phase I Environmental Site Assessment is primarily focused on evaluating potential environmental contamination risks associated with a property. This assessment is typically conducted before a property transaction to identify any existing or historical contaminative practices that could lead to environmental liability. It involves reviewing historical records, conducting interviews with past and present property owners, and performing a visual inspection of the property and surrounding areas. The goal is to identify Recognized Environmental Conditions (RECs) that could affect the land’s value, its future use, or the health of individuals and ecosystems nearby. This proactive approach is essential in environmental due diligence and helps stakeholders make informed decisions regarding real estate and development projects.

While investigating historical land use is an important part of the Phase I assessment process, it serves the larger purpose of evaluating contamination risks. The assessment is not intended for real estate valuation or assessing community impacts directly; those are separate evaluations that may rely on the findings of the Phase I assessment.