Transaction Screening Assessments (ASTM E-1528)

Transaction Screening Assessments, as outlined in ASTM E-1528, provide a streamlined approach to environmental due diligence, particularly in situations where a full Phase I Environmental Site Assessment (ESA) may not be initially necessary or required. Here’s an expanded overview of Transaction Screening Assessments:

Purpose and Scope:

• Transaction Screening Assessments are designed to identify potential environmental concerns in a less comprehensive and less costly manner than a full Phase I ESA.
• They are typically used for lower-risk properties or in transactions where the parties involved do not require the comprehensive liability protections offered under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Process and Methodology:

• The assessment involves a basic review of environmental conditions, which may include a site visit, limited historical research, and interviews with knowledgeable parties.
• It focuses on identifying obvious signs of environmental contamination or risks, such as visible spills, industrial materials, or evidence of underground storage tanks.

Limitations:

• Unlike a Phase I ESA, Transaction Screening Assessments do not provide CERCLA liability protection. They are less thorough and do not include a detailed historical review or comprehensive site investigation.
• They are not a substitute for a Phase I ESA in transactions where thorough environmental due diligence is necessary, especially for properties with a higher risk of contamination.

When to Use:

• This practice is suitable for lower-risk transactions, such as properties with a history of non-industrial use or where the buyer has prior knowledge of the site’s environmental condition.
• It may also be used as a preliminary step before deciding whether to conduct a full Phase I ESA.

Benefits:

• Transaction Screenings can be faster and more cost-effective than a full Phase I ESA.
• They can provide an initial understanding of potential environmental issues that may affect a property transaction.

Follow-up Actions:

• If a Transaction Screening Assessment identifies potential environmental concerns, it is often recommended to proceed with a Phase I ESA to fully assess the risks and ensure due diligence.

In summary, Transaction Screening Assessments offer a basic level of environmental review and can be appropriate in certain low-risk scenarios. However, for comprehensive environmental due diligence and legal protection under CERCLA, a Phase I Environmental Site Assessment remains the standard practice.