Phase I & Phase II Environmental Site Assessments in California
Before you buy, sell, or finance commercial property in California, you need to know what's in the ground. A Phase I Environmental Site Assessment identifies environmental risk from historical records — and a Phase II confirms or rules out contamination through actual sampling. Skipping this step can mean inheriting millions in cleanup liability.
McNeil Safety Consulting provides ASTM E1527-21 compliant Phase I and Phase II ESAs throughout California — with 35+ years of environmental consulting experience and reports that satisfy lender, regulatory, and legal requirements.
What's Included
Phase I and Phase II ESAs serve different purposes and are often conducted in sequence — Phase I first to identify risk, Phase II to confirm or rule out contamination where warranted.
Phase I ESA
Records review · No sampling · ASTM E1527-21
- Historical records review (aerial photos, Sanborn maps, city directories)
- Federal and state regulatory database review (ASTM E1527-21 standard search)
- Site reconnaissance and visual inspection
- Interviews with current and past owners, operators, and occupants
- Identification of Recognized Environmental Conditions (RECs)
- Written Phase I ESA report compliant with ASTM E1527-21
- Lender-ready documentation for SBA, conventional, and CMBS loans
- Rush turnaround available for time-sensitive transactions
Phase II ESA
Physical sampling · Lab analysis · Triggered by Phase I RECs
- Soil boring and sampling program design and execution
- Groundwater monitoring well installation and sampling
- Soil vapor probe installation and sampling
- Surface and subsurface soil sampling
- Laboratory analysis through accredited California laboratories
- Comparison to California regulatory screening levels (ESLs, RSLs)
- Written Phase II ESA report with findings and recommendations
- Remedial cost estimation and cleanup strategy development
- Regulatory agency notification and reporting where required
Who We Serve
Environmental site assessments are required across a wide range of commercial real estate transactions and regulatory contexts.
Frequently Asked Questions
What is a Phase I Environmental Site Assessment?
A Phase I Environmental Site Assessment (ESA) is a records-based investigation of a property's environmental history — conducted in accordance with ASTM Standard E1527-21. It involves a review of historical records, regulatory databases, aerial photographs, and Sanborn fire insurance maps, combined with a site reconnaissance and interviews with current and past owners. The goal is to identify Recognized Environmental Conditions (RECs) — evidence of past or present releases of hazardous substances that may have impacted the property. A Phase I does not involve sampling; it is a records and visual review only.
When is a Phase I ESA required?
A Phase I ESA is required by most commercial lenders as a condition of financing — including SBA loans, conventional commercial mortgages, and CMBS loans. It is also required for CERCLA innocent landowner defense (to establish that a buyer conducted "all appropriate inquiries" before purchasing a contaminated property). Many buyers and sellers commission Phase I ESAs voluntarily as part of commercial real estate due diligence, even when not required by a lender, to understand the environmental risk profile of a property before closing.
What is a Phase II Environmental Site Assessment?
A Phase II Environmental Site Assessment involves actual physical sampling — soil borings, groundwater monitoring wells, soil vapor probes, and/or surface samples — to confirm or rule out contamination identified or suspected in a Phase I ESA. Phase II sampling is triggered when a Phase I identifies a Recognized Environmental Condition (REC) that warrants further investigation. The results determine whether contamination is present, what contaminants are involved, and at what concentrations — information needed to assess cleanup costs, regulatory obligations, and deal risk.
How long does a Phase I ESA take?
A standard Phase I ESA typically takes 2–3 weeks from engagement to final report delivery — including database research, site reconnaissance, and report preparation. Rush turnaround is available for time-sensitive transactions. The timeline can be affected by the complexity of the property's history, the availability of historical records, and the responsiveness of regulatory agencies to database requests.
What is a Recognized Environmental Condition (REC)?
A Recognized Environmental Condition (REC) is the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property due to a release to the environment, under conditions indicative of a release, or under conditions that pose a material threat of a future release. RECs are the primary output of a Phase I ESA — they are the findings that may warrant further investigation through a Phase II ESA. Not all RECs result in actual contamination, but they represent environmental risk that a buyer, lender, or investor needs to understand.
What types of properties need a Phase I ESA in California?
Any commercial or industrial property transaction in California may require a Phase I ESA — including office buildings, retail centers, industrial facilities, warehouses, gas stations, dry cleaners, auto repair shops, agricultural land, and mixed-use properties. Properties with a history of industrial use, underground storage tanks, or proximity to known contaminated sites are particularly likely to have RECs identified. Residential properties are generally not subject to Phase I requirements, but multi-family properties and residential developments on formerly commercial or industrial land may be.
What is ASTM E1527-21 and why does it matter?
ASTM E1527-21 is the current standard practice for Phase I Environmental Site Assessments, published by ASTM International and adopted by the EPA as the standard for "all appropriate inquiries" under CERCLA. The 21 refers to the 2021 update, which replaced the previous E1527-13 standard. Lenders and regulatory agencies require that Phase I ESAs comply with the current ASTM standard — a Phase I conducted under an outdated standard may not satisfy lender or regulatory requirements. All of our Phase I ESAs are conducted in full compliance with ASTM E1527-21.
Don't Close Without Knowing What's in the Ground
Call today for a free consultation. We'll discuss your property, your transaction timeline, and what level of environmental due diligence is appropriate — so you can close with confidence.
Call (626) 546-9384Headquartered in Arcadia, CA · Serving California statewide · Rush turnaround available