CPP CPP Site Assessment & Due Diligence

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

A Phase I ESA identifies Recognized Environmental Conditions through historical records review, regulatory database searches, and a site reconnaissance without intrusive sampling, providing CERCLA liability protection.

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

Phase II ESAs are conducted when Phase I identifies RECs suggesting potential contamination, requiring soil, groundwater, or building material sampling to confirm or rule out contamination.

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

RECs are the standard of care finding in a Phase I ESA, identifying conditions suggesting hazardous substance or petroleum releases that could pose regulatory or legal liability.

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

CERCLA imposes strict, joint, and several liability on property owners and operators for cleanup costs, driving buyers to conduct environmental due diligence to qualify for liability protections.

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

Brownfields are properties with known or suspected contamination that may deter development; federal and state programs provide grants, loans, and liability relief to incentivize brownfield cleanup and redevelopment.

CPP - Certified Permitting Professional Practice Test

CPP - Certified Permitting Professional Practice Test

CPP CPP Site Assessment & Due Diligence