1. Environmental Due
Diligence Overview
© 2011 GLE Associates, Inc.

2. Company Background
 Formed in 1989
 Strong Base of Technical Expertise
 Geographic Accessibility
 Financial Stability
 Client Satisfaction

3. Offering Full-Service
Capabilities
 Architects
 Engineers
 Environmental Consultants
 Construction Management
 LEED Accredited Professionals in all major disciplines

4. Office Locations
 Tampa, FL
 Orlando, FL
 Gainesville, FL
 Jacksonville, FL
 Ft. Lauderdale, FL
 Atlanta, GA
 Nashville, TN

5. Environmental Due
Diligence Overview
 Why complete Environmental Due Diligence?
 Types of Due Diligence
 Phase I, Phase II, and Phase III ESA Process
 SBA Guidance – Environmental Risk Management
 Sources of Error on Phase I ESA Process
 Vapor Intrusion
 Questions

6. Why Complete Environmental
Due Diligence?

7. Why Complete Environmental
Due Diligence?
 Formal Environmental Policy
 Regulatory Pressure
 Loan Risk Management
- New loan origination
- Facilityproperty acquisition
- Foreclosure
- Loan extension or refinance
- Monitoring over Life of Loan

8. Why Complete Environmental
Due Diligence?
 EDR 2010 Annual Survey of Financial Institutions
 Reviewed Lender Environmental Policy requiring EDD

9. Types of Environmental
Due Diligence
 Phase I ESA Process ASTM E 1527-05
 Phase II ESA Process ASTM E1903-97
 Phase III ESA Process
 Remediation Action Plan

10. Phase I ESA Process
ASTM 1527-05
Definition:
“The purpose of this practice is to define good commercial and customary
practice in the United States of America for conducting an environmental site
assessment of a parcel of commercial real estate with respect to the range of
contaminants within the scope of Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) (42 U.S.C. §9601) and petroleum
products. As such, this practice is intended to permit a user to satisfy one of the
requirements to qualify for the innocent landowner, contiguous property
owner, or bona fide prospective purchaser limitations on CERCLA liability
(hereinafter, the “landowner liability protections,” or “LLPs”): that is, the
practice that constitutes “all appropriate inquiry into the previous ownership
and uses of the property consistent with good commercial or customary
practice.”

11. Phase I ESA Process
ASTM 1527-05
Goal of a Phase I ESA:
 CERCLA Liability Protection
 Determination of “Recognized Environmental Concern”
 Determination of “Business Environmental Risk”

12. Phase I ESA Process
ASTM 1527-05
Definitions (con’t):
Recognized Environmental Conditions “the presence or
likely presence of any hazardous substances (HS) or petroleum
products on a property under conditions that indicate an existing
release, a past release, or a material threat of a release of any
hazardous substances or petroleum products into structures on the
property or into the ground, ground water, or surface water of the
property. The term includes hazardous substances or petroleum
products even under conditions in compliance with laws.”

13. Phase I ESA Process
ASTM 1527-05
Definitions:
Business environmental risk “a risk which can have a material
environmental or environmentally-driven impact on the business
associated with the current or planned use of a parcel of
commercial real estate, not necessarily limited to those
environmental issues required to be investigated in this practice.
Consideration of business environmental risk issues may involve
addressing one or more non-scope considerations.”

14. Phase I ESA Process
ASTM 1527-05
What is included in a Phase I ESA Report:
 Records Review
– Regulatory database search
– Regulatory agency file review
 Historical Use
– Aerial Photographs
– Sanborn Maps
– City Directory Review
– Land Title Records
– BuildingProperty Tax Records
– Zoning Land Use Records

15. Phase I ESA Process
ASTM 1527-05
What is included in a Phase I ESA Report:
 Site Visit
– Visually and physically observe the property
– Currentpast use of property and adjoining properties
– Color Photographs
– Site Plan
 Interviews
– Current Property OwnersOperatorsOccupants
– Local Government Officials

16. Phase I ESA Process
ASTM 1527-05
Limitations of a Phase I ESA Report:
 Out of Scope Items
– Sampling
– Asbestos, Lead, Mold, Radon
– Cultural or Historical Resources
– Wetlands, Ecological Resources, or Endangered Species
– Health, Safety, or Regulatory Compliance
– Checking Title Records for Environmental Liens or Land Use
Restrictions
– Property Appraisal or Review of Purchase Price

17. Phase I ESA Process
ASTM 1527-05
Limitations of a Phase I ESA Report (con’t):
 Phase I ESA report, per the standard,
− Is only good for 180 days,
− At which point an update will need to be
performed

18. Phase II ESA Process
ASTM E1903-97
 Follow-up investigation based on the results of the Phase I
ESA
 Scope is determined by Environmental Professional to
properly address “Recognized Environmental Conditions”
and “Potential Environmental Concerns”
 Typically includes soil and groundwater sampling on the
subject property for laboratory analysis
 Results of laboratory analysis compared to local, state and
federal regulatory guidelines

19. Phase III ESA Process
Goal – to determine the horizontal and vertical extent of
contaminations impacts in order to estimate the method and
cost of cleanup
 Typically includes additional soil and groundwater
sampling and laboratory analysis
 Results of laboratory analysis compared to local, state and
federal regulatory guidelines
 Development of a Remedial Action Plan

20. Contact Us
For a copy of our complete presentation or to
schedule a lunch n’ learn please contact us at:
akucenic@gleassociates.com
1-888-453-4531
www.gleassociates.com