The Phase I Environmental Site Assessment: Unexpected COVID-19 Victim?

Key Points

• The COVID-19 crisis has left consultants, lenders, servicers, investors and other users struggling to assess environmental conditions of assets as they question the ability to conduct, and the utility of, phase I environmental site assessments ("ESAs") in this environment.
• A number of states still allow ESAs to take place during the pandemic, assuming consultants follow applicable orders and take commonsense steps to protect themselves and others, though the resulting ESA reports may be limited in scope and/or identify "data gaps."
• The usefulness of such an ESA depends on its intended purpose, but counsel and consultants can help to quantify and manage risk and navigate the flexibility existing in, and being added to, the regulatory framework.