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Reporting Chemical Compounds Used in Fracking

As of February 1, dilling operaters in Texas are now required to report the chemical compounds used in hydraulic fracturing or “fracking” operations, the process used to extract natural gas from the ground.  Fracking has caused controversy over the potential that it can contaminate groundwater and well water. 

In addition, they will have to report the amount of water used, which should be of great interest because of the drought there.  Several other states have put this requirement in place. 

Click here to read the story.

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Cleaning Up Indoor Air

According to researchers, people in developed countries spend 90 percent of their time indoors, potentially breathing air polluted by emissions from indoor sources, such as formaldehyde. One approach to improve indoor air quality is to increase the amount of fresh air intake, the old “dilution is the solution to pollution”.  But increasing fresh air intake brings with it increased energy consumption of energy for heating, cooling and humidifying/dehumidifying.

Members of the Indoor Environment Department of the Lawrence BerkeleyNational Laboratory’s Environmental Energy Technologies Division (EETD) have developed methods for reducing levels of indoor formaldehyde concentrations with a synthetic catalyst and evaluating reduction of other volatile organic compounds with activated carbon fiber filters.

Click here to read the article.

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Freddie Mac Environmental Report Updates / Revisions

On May 31st , 2011 Freddie Mac updated their requirements for Phase I ESA environmental reports.

The most significant of Freddie Mac’s environmental report updates is a requirement to indicate in the Phase I ESA whether the state in which the property is located has a State Super Lien Law.  Super Liens would allow environmental authorities to place a first priority lien on the Property as a result of environmental hazards.  Numerous states currently have Super Lien laws in effect, including Connecticut, Hawaii, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, and Wisconsin.

Another Freddie Mac ESA revision is a clarification that the opinion that a Property contains no asbestos-containing materials (ACM) cannot be based on the Property’s construction date.  Freddie Mac requires that the consultant either render a professional opinion on whether the building contains asbestos, that opinion not being based solely on the age of the building, or conduct sampling of suspect ACM. In lieu of conducting sampling, an O&M Plan may be recommended if the material is:

  • Undamaged non-friable; and
  • Non-hazardous in its current form, condition and location.

An abbreviated O&M plan is allowed for undamaged, encapsulated friable joint compound, if that is the only suspect material.  If sampling is conducted, a qualified professional must analyze the samples utilizing polarized light microscopy and dispersion staining.

Other revisions include:

  • The minimum number of units to be inspected and/or sampled
  • Requires that Freddie Mac approves O&M plans prior to the loan origination date
  • Clarifying the inspection requirements for PCBs
  • Revisions to form 1103

Visit our Freddie Mac due diligence webpage for a full rundown of the revisions.

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LSRP Program

The New Jersey Department of Environmental Protection (NJDEP) created the Licensed Site Remediation Professional (LSRP) program last year to help expedite the cleanup of contaminated sites.  The program was created by the Site Remediation Reform Act (SRRA), which was signed into law in May 2009, and gives LSRPs the ability to oversee the day to day management of remediation sites, rather than waiting for NJDEP approval to proceed.

LSRPs are required to meet the same stringent cleanup standards as previously established and are bound by a strict code of ethics; however, the process of remediation will proceed much more quickly under this new program.  This is a welcome change for industrial and commercial property owners and developers that are eager to achieve site closure and return properties to greatest productive use.

Given the relative newness of this program, there seems to be a shortage of LSRPs in New Jersey.  The NJDEP anticipated  receiving 5,000 applications upon the inception of the program.  To date, less than 500 certifications have been processed.  Partner Engineering and Science’s David Umbach is a PG and an LSRP and has been overseeing remediation sites since 1981, including more than 1,000 major oil company UST site removals, Industrial site closures, Brownfields redevelopments, HUD, FHA and SBA funded developments, Industrial waste system closure and construction, Landfill capping and closure,  Lagoon, pond and marina dredging, Wetlands reconstruction, Municipal water supply system designs, Spill Prevention Containment and Countermeasure Plan preparation, ISRA and RCRA compliance, groundwater remediation system design and operation.

Last week the NJDEP issued new guidance on complying with the program, clarifying certain fees, forms and site classifications/scopes of work.  Visit Partner for information on the LSRP program and the recent advisory.

Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Environmental Soil Testing. Tagged with , , , , , , , , , .

Erosion Control and the Phase 1 Environmental Site Assessment

Erosion Control is a big issue for lenders taking back construction sites and vacant parcels that were intended for construction.   When lots are graded, all of the natural vegetation that protects a site from surface leaving, allows the soil to becomes exposed to rain and wind.   When a site erodes the result can be damage to the completed earthwork on the site as well as silting of streams and storm sewers.   Cities and states around the country are fining land owners across the country for not controlling their erosion.  

The Phase 1 Environmental Site Assessment can easily address erosion control issues at the same time.   To do this, the client should work with a firm that has expertise in both erosion control and environmental site assessment.

Erosion control measures include: silt fences, straw bales or sandbags around the perimeter, engineered catch basins, and seeding of exposed soils.   

Partner Engineering and Sciences, offers a full range of erosion control products ranging from site inspection to design of mitigation measures.

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Lead Scavengers

Lead scavengers, such as Ethylene dibromide (EDB) and 1,2-dichloroethane (1,2-DCA), were additives to leaded gasoline until the late 1980s. Recent study has shown that these compounds may persist in the environment and affect drinking water supplies. The regulations for lead scavengers may be evolving and environmental professionals performing Phase I and II Environmental Site Assessments should beware.
Lead scavengers have had uses other than gasoline. For examples, the common lead scavenger, EDB, was used as a soil fumigant. EDB was widely used as an agricultural fumigant and was banned in 1983 and 1,2-DCA is still used as an industrial solvent. Both of these lead scavengers have federal Maximum Concentration Limits (MCLs) in drinking water; for EDB the MCL is 0.05 parts per billion (ppb), and for 1,2-DCA it is 5.0 ppb.

Leaded fuel with lead scavengers is still used in some fuels—auto racing fuel and aviation fuel. The EPA is currently working with states to determine the size of the lead scavengers problem.
Phase 2 Environmental Reports and soil and groundwater testing at fuel storage or underground storage tank sites should include testing for lead scavengers.
After lead scavengers were phased out of leaded gasoline, the hope was that that lead scavengers present in the ground and groundwater as a result of leaking underground storage tanks would degrade and dissipate or degrade. Recent data indicates that lead scavengers may persist for long periods of time in the groundwater.

Posted in Environmental Due Diligence, Environmental Soil Testing, Phase I Environmental Site Assessments. Tagged with , , , , .

Phase II Environmental Report

A Phase I Environmental Site Assessment Report researches a site’s history and if the previous uses of the site represent a Recognized Environmental Condition, the Environmental Professional typically recommends a Phase II Environmental Report.   The Phase II Environmental Report typically consists of subsurface soil borings from which soil, groundwater, and/or soil vapor samples are collected. 

 

Phase IIs are commonly recommended for historical use of a site by environmentally sensitive uses such as: a gas station, a dry cleaners, industrial uses, and auto repair.   The Phase II will test the soil in areas of concern as determined during the Phase I ESA and the samples collected from these borings will be sampled for the chemicals of concern.    A good Phase I ESA is critical in adequately scoping a Phase II Environmental Report 

 

The Phase II Environmental Report will evaluate if the historical use of hazardous chemicals on the subject site are a threat to human health, groundwater, or the general environment. 

 

For a quote or advice on a Phase II Environmental Report call Partner Engineering and Science at 800-419-4923. 
 
 
 
 
 

 

Posted in Commercial Building Inspection, Environmental Due Diligence, Environmental Soil Testing. Tagged with , , , , .

Phase I Environmental Reviews

As an Environmental Professional, I am routinely asked to review a competitor’s Phase I Environmental Site Assessment and in these instances I think how we approach these reviews is an important manifestation of our professionalism.   When reviewing another consultant’s Phase I ESA and/or Phase II Subsurface Testing Report, we need to focus on our client’s needs as opposed to trying to show why we are somehow better than the report author.  

When reviewing an environmental report, important questions to ask are:  1) did the scope of work materially meet the requirements of ASTM 1527-2007 and those of the EPA’s All Appropriate Inquiry (AAI) Standard; 2) does the report contain enough information and data to support the decision at hand; and 3) did the author interpret the environmental risks in a way that fits into your client’s paradigm.  

 

The bottom line is that while we should take firm positions on the facts and risk interpretation, we should always give the other professional the benefit of the doubt.  

Posted in Environmental Due Diligence, Environmental Soil Testing, Phase I Environmental Site Assessments, Real Estate Due Diligence. Tagged with , , , , , , .

HUD Phase I Environmental Site Assessment

A Phase I Environmental Site Assessment is required for to finance all MAP projects (purchase, refinance, new construction or substantial rehabilitation) and the Phase I ESA must meet both the requirements of the American Society of Testing Materials (ASTM) Standards E1527 and the requirements of HUD “Environmental Assessment Guide for Housing Projects” and the HUD  Handbook 1390.4 “Guide to HUD Environmental Criteria and Standards contained in 24 CFR 51”.

 

The consultant must complete HUD’s environmental form HUD-4128 “Environmental Assessment and Compliance Finding for the Related Laws.”  HUD Form 4128 requires the consultant to address issue beyond the traditional ASTM Phase I ESA.   For example, the consultant must opine on the site’s exposure to noise and must address asbestos and lead based paint.

  

Recently, HUD has began requiring a Tier 1 vapor intrusion (VI) screen as defined by  ASTM E 2600 with the Phase I environmental site assessments. Per Tier I guidelines, the environmental professional must perform an initial vapor intrusion screen to determine if there is a potential for toxic vapors to exist onsite as a result of an onsite or offsite release.

 

HUD also wants to ensure that the environmental professionals working on their projects are experienced with HUD projects.   The engineers and architects that run my firm’s HUD Group are MAP Certified and LEAN Certified, and these are important qualifications in the universe of HUD due diligence. 

Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Phase I Environmental Site Assessments, Real Estate Due Diligence. Tagged with , , , , , , , , , .

HUD Phase I ESAs: Navigating HUD’s Multifamily Accelerated Processing (MAP) program

Once considered the last option for financing multifamily property, HUD’s MAP program is an appealing alternative to developers, owners, and brokers in today’s lending environment.  The program, Section 207/223(f), insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing.  These projects may have been financed originally with traditional or FHA insured mortgages, which have recently provided limited liquidity.  However, with the recent (July 27, 2009) grant waiver of the Three-Year Rule for Section 223(f) applications, HUD has given borrowers more financing latitude to secure long-term loans of recently constructed or substantially rehabilitated, self-sustaining properties.  

All MAP projects (purchase, refinance, new construction or substantial rehabilitation) require a Phase I Environmental Site Assessment (ESA), in accordance with the American Society of Testing Materials (ASTM) Standards E1527-97 as amended.  Completion of an environmental form (HUD-4128) established by HUD, is also required as part of the environmental assessment.  Partner Engineering and Science (Partner), understands the need for a strong screening process and has extensive experience in performing HUD Phase I ESAs for various clients including cities, lenders, private equity clients, developers and brokers.  In addition to understanding the NEPA process, Partner understands the importance of informing our clients of potential issues that could delay or even break a deal.  As the leader in Due Diligence, Partner consistently provides HUD staff with comprehensive reports that meet all compliance findings described in HUD -4218.  This creates a smoother screening process and allows the lender to focus on other deals.  

Given the current state of the economy and the Obama administration’s commitment to revitalize government backed loans, HUD Phase Is may become a more accessible option.

 

Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Phase I Environmental Site Assessments, Real Estate, Real Estate Due Diligence. Tagged with , , , , , , .