CPP CPP Site Assessment & Due Diligence 1

Question 1

What is the purpose of a Phase I Environmental Site Assessment (ESA)?

Accepted Answer

To identify recognized environmental conditions (RECs) through records review and site inspection without sampling

Answer

To collect soil and groundwater samples to confirm contamination

Answer

To remediate identified contamination on a property

Answer

To assess the value of a contaminated property for tax purposes

Question 2

What triggers the need for a Phase II Environmental Site Assessment?

Accepted Answer

Recognized environmental conditions (RECs) identified in a Phase I ESA that require further investigation

Answer

Any property transaction over $1 million

Answer

All commercial properties regardless of prior use history

Answer

Whenever a Phase I ESA is more than 2 years old

Question 3

What are 'recognized environmental conditions' (RECs) in environmental due diligence?

Accepted Answer

The presence or likely presence of hazardous substances or petroleum products due to a release or threatened release

Answer

Visible pollution observed during a site walk

Answer

Any environmental permits associated with a property

Answer

Environmental conditions that meet regulatory cleanup standards

Question 4

What federal law creates environmental liability for contaminated site cleanup and drives Phase I/II due diligence?

Accepted Answer

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA/Superfund)

Answer

Resource Conservation and Recovery Act (RCRA)

Answer

Safe Drinking Water Act

Answer

Toxic Substances Control Act (TSCA)

Question 5

What is a 'Brownfield' site in the context of US environmental law and permitting?

Accepted Answer

A real property where expansion or redevelopment is complicated by real or perceived contamination

Answer

Any site on the EPA Superfund National Priorities List

Answer

A site where industrial use has been banned permanently

Answer

Agricultural land converted to residential use

Question 6

What is 'All Appropriate Inquiry' (AAI) under CERCLA as it relates to environmental due diligence?

Accepted Answer

The standard of environmental investigation required to qualify for CERCLA liability protections as an innocent purchaser

Answer

A comprehensive soil sampling protocol for industrial sites

Answer

The level of review required before issuing a Section 404 permit

Answer

A federal audit program for industrial facilities