A Phase I Environmental Site Assessment (ESA) is a critical toolto understanding and managing environmental risk associated with areal estate asset. But when do you need more than aPhase I ESA? For buyers who want toqualify for defenses to liability under the ComprehensiveEnvironmental Response, Compensation and Liability Act (CERCLA) ,the answer is always. In order to qualify for suchliability defenses, EPA requires property buyers to go beyondhiring a consultant to complete a Phase I ESA.

CERCLA and AAI

Under Federal laws the owner of a property can be responsible tocleanup a property even if they didn't cause contamination and didnot own the property when the contamination occurred. It ispossible to qualify for defenses to CERCLA liabilities, but only by carefully followingthe requirements established by EPA. A Phase I Environmental SiteAssessment can be an important tool to protect buyers from thenegative impacts to cash flow, value and use of real estate, andability to sell or finance the property that can result whencontamination is present, but it is not enough to allow buyers toclaim defenses to liability under CERCLA.