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Environmental Due Diligence
Environmental due diligence is the assessment of any environmental risk that may be associated with a site or property. Radius Environmental Consulting, LLC offers Phase-I ESA, Phase-II ESA, RSRA, and TSA reports to cover any tier of environmental due diligence you require.
Phase-I Environmental Site Assessment (ESA)
A Phase-I ESA is a typical part of most commercial real estate transactions and reviews both the current and historical uses of the property. The purpose is to determine if any of the current or historical uses of the property may negatively affect the environment or human health. A Phase-I ESA also is often used to satisfy the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) innocent land owner defense under the All Appropriate Inquiries (AAI). The Phase-I ESA follows the ASTM E1527-21 standards. The completed Phase-I ESA Report will give a summary of any environmental conditions and/or concerns, along with the opinion of the Environmental Professional who completed the report. Typically, the conclusion states either that “No further assessment is warranted” or “Further assessment is warranted”. In the case that further assessment is warranted, a Phase-II ESA is performed.
Phase-II Environmental Site Assessment (ESA)
When a Phase-I ESA has identified an environmental condition and suggests further assessment, a Phase-II ESA is performed. The purpose of a Phase-II ESA is to determine how the identified environmental condition(s) potentially impacts the property. This is desirable since any environmental impacts to a property can reduce the value and incur a cleanup which can become quite expensive. A Phase-II ESA follows the ASTM E1903-19 standard. A Phase-II ESA consists of on-site sampling of soil (both on the surface and below the surface), surface water, and groundwater. Subsurface soil samples and groundwater samples require drilling on-site at the locations identified by the Environmental Professional. The sampling locations and number of samples are based on the information gathered during the Phase-I ESA. The samples are sent to a laboratory and analyzed to determine if any contaminants are present and if they are above the legal limits. The contaminants to be tested for is based on the judgement of the Environmental Professional conducting the report. When planning the Phase-II ESA site investigation, consideration is given to the site geology, topography, hydrology, state and federal regulations, and the chemicals of concern. Once a Phase-II ESA is completed, the report will identify which soil or water samples, if any, contain contaminants above the legal limits. If samples are found with contaminants exceeding the legal limits, a Phase-III ESA is required.
Transaction Screen Assessment (TSA)
In certain situations, a Phase-I ESA is superfluous and a simple Transaction Screen Assessment (TSA) is adequate. A TSA is a watered-down version of a Phase-I ESA and is typically performed when the property is considered to be low-risk, such as a commercial property that has no history of any high-risk activity (e.g. dry cleaners, gas station, etc.). However, a TSA does not meet the CERCLA innocent land owner defense under the AAI. The TSA follows the ASTM E1528-14 and requires a site visit, completion of the Transaction Screen Questionnaire, a review of government regulatory databases, a review of historical information, and identification of any environmental concerns. The TSA report does not need to be completed by an Environmental Professional, however most banks and lending institutions will require that the TSA be completed by an Environmental Professional.
Records Search with Risk Assessment (RSRA)
The Small Business Association (SBA) developed the RSRA as the minimum environmental assessment for SBA loans that are greater than $150,000 and not identified on the list of sensitive industries. For loans that are less than $150,000, the minimum environmental requirement is simply an Environmental Questionnaire. The RSRA consists of a review of government regulatory databases, a review of historical information, and a risk assessment performed by an Environmental Professional. In addition, the Environmental Questionnaire is also required alongside the RSRA. When completing a RSRA, the lender must perform a good faith site visit with the current property owner/manager/occupant to assess the property and complete the Environmental Questionnaire. The current owner/manager/occupant must sign the Environmental Questionnaire. If the Environmental Questionnaire cannot be completed, then at minimum, a TSA is required.
Geological Assessments
The Edwards aquifer is used by Central Texas for drinking water. The aquifer has “karst” characteristics which lead to the formation of fractures, caves, and sinkholes that act as conduits to the aquifer from the surface. This allows for rainwater and surface runoff to reach and recharge the aquifer quickly. However, this also allow for surface pollution runoff to also have a direct connection to the aquifer and can lead to potentially having a negative effect on the aquifer water quality. Therefore, the Texas Commission on Environmental Quality (TCEQ) created the Edwards Aquifer Protection Plan(EAPP) to help create guidelines for developers to ensure that the water quality of the Edwards aquifer remains acceptable. The EAPP includes guidelines for water pollution abatement, sewage collection, underground and aboveground storage tanks, and contributing zone plans. Before building on the Edwards Aquifer Recharge Zone (EARZ), Edwards Aquifer Contributing Zone (EACZ), or Edwards Aquifer Contributing Zone within the Transition Zone, the EAPP must be reviewed and approved by the TCEQ Edwards Aquifer Protection Program.
A key part of the EAPP is a Geologic Assessment Report (GAR).The purpose of the GAR is to determine if any nexus to the Edwards Aquifer exists on the property. Forms supplied by the TCEQ can help to determine the severity of any identified pathway. Certain cities may have additional requirements in addition to those given by the TCEQ. For example, the City of Georgetown has additional requirements that involve the natural springs in the area and the Georgetown Salamander.
The zones mentioned above are located in the following counties: Kinney County, Uvalde County, Medina County, Bexar County, Comal County, Hays County, Travis County, and Williamson County.
Wetland Assessments
Wetlands, ponds, streams, creeks, lakes, and other surface bodies of water can be regulated by local, state, and federal laws. These laws can place restrictions on how the property can be developed and often additional permits are required. The regulating entity for most wetlands is the U.S. Army Corps of Engineers (USACE). Radius Environmental Consulting, LLC offers Preliminary Wetland Identification, Wetland Determination, Wetland Delineation, and Wetland Permitting.
Other Environmental Services
Radius Environmental Consulting, LLC offers other environmental services such as the Environmental Resource Inventory (ERI) Report, ERI Waiver, Texas Parks and Wildlife Department (TPWD) Compliance, and Water and Soil Sampling and Analysis.
Environmental Resource Inventory (ERI)
The ERI Report is required by the City of Austin for any project that proposes development over a karst aquifer, within an area draining to a karst aquifer or reservoir, in a water quality transition zone, in a critical water quality zone, in a floodplain, or on a tract with a gradient of more than 15%. Development that does not fit any of the above requirements can apply for an ERI Waiver. The ERI Report identifies critical environmental features and propose protection
measures for the features, provides an environmental justification for spoil disposal locations or roadway alignments, proposes methods to achieve overland flow, describes proposed industrial uses and the pollution abatement program, and is completed as prescribed by the Environmental Criteria Manual. Included in the ERI Report is a hydrogeologic report, a vegetation report, and a wastewater report. Certain deletions from the requirements are possible depending if the director determines any said requirements to be unnecessary.
Texas Parks and Wildlife Department (TPWD) Compliance
There are many species within Texas that are considered to be vulnerable, threatened with extinction, and/or are protected. Radius Environmental Consulting, LLC offers Preliminary TPWD Compliance studies to determine if a property contains or will contain in the future any protected species.
Water and Soil Sampling and Analysis
Often times an area in a property can become contaminated by an activity that the owner was unaware of (e.g. dumping, a leak, unmonitored chemicals, etc.). In this situation, concerns can arise of the status of the soil, surface water, and/or groundwater. Radius Environmental Consulting, LLC performs soil and water testing and analysis to help determine if the area is affected.
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