Limited Environmental Due Diligence
Limited environmental due diligence reports are cost-effective tools that aim to consolidate the environmental information of a property. In fact, these reports are typical without regulation and standards. And they simply help environmental professionals gain a preliminary understanding of the potential environmental risks at hand or lack thereof. In some cases, landowners may find it in their best interest to independently conduct a series of these investigations prior to a Phase 1 Environmental Site Assessment or Phase 2 Subsurface Investigation. Theoretically, these smaller steps may aid landowners in better decision-making. Updated June 10, 2021.
Applications for Limited Environmental Due Diligence Reports
Limited Environmental Reports are generally the starting request for properties with a low- to moderate- risk of contamination. For instance, lots that exist within busy industrial zones. In the same way, Limited Environmental Due Diligence Reports also apply to lots without any obvious chance of direct contamination on-site. For example, lots that are adjacent to other possible contamination sites.
The more comprehensive options are ASTM-compliant environmental site assessments for properties that presumably have higher liability and risk. And ASTM-compliant reports also provide buyers with CERCLA liability protection as Innocent Land Owners (ILO). These reports are a cost-effective way to initially evaluate the environmental risks of a property. For complete CERCLA liability protection and risk evaluation of “high-risk” properties, a full scope Phase I Environmental Site Assessment Report is advised.
Types of Reports & Options
Deciding between Limited Environmental Site Assessment Reports and complete Phase I Site Assessment Reports can be difficult. For all inquiries, call (888) 930-6604 to speak with a professional geologist or engineer. Otherwise, the following are some of the options investors have for preliminary assessments.
A Desktop Environmental Report is a limited due diligence report that allows property owners to economically evaluate the potential for contamination risk at a property by unforeseen causes. In fact, these reports typically comprise Phase 1 ESA components. For instance, government database reports, regulatory agency files, and historical aerials and fire insurance maps. Desktop ESA reports are fully customizable, and can also include Records Search with Risk Assessment (RSRA) components.
A Transaction Screen Assessment is a limited environmental due diligence report aiming towards the loan qualification process. Most of these assessments apply to the Small Business Administration (SBA). Transaction Screen Assessments are usually the request upon 7(a) and 504 loans, on considerably “Low-Risk Properties.”
Limited Subsurface Testing procedures aim to provide landowners with a particular set of subsurface data. Typically, this may not be certain enough to determine whether contamination does exist, or not. However, it can provide reliable preliminary information, as a valuable purchaser’s tool when engaging in a transaction. Moreover, in addition to soil sampling, the also includes sub-slab soil gas testing.