What is a Recognized Environmental Condition (REC)?

Recognized Environmental Conditions (RECs) are a critical concept in environmental due diligence, particularly within the framework of Phase I Environmental Site Assessments (ESAs).  

The term "Recognized Environmental Condition" (REC) is defined by the ASTM E1527-21 standard as:

1. The presence of hazardous substances or petroleum products in, on, or at the subject property due to a release to the environment.
2. The likely presence of hazardous substances or petroleum products in, on, or at the subject property due to a release or likely release to the environment.
3. The presence of hazardous substances or petroleum products in, on, or at the subject property under conditions that pose a material threat of a future release to the environment.

This definition is crucial for environmental professionals conducting Phase I ESAs, as it helps determine whether a property may pose environmental risks that could affect its value or usability.

Historical Context and Evolution

The concept of RECs has evolved over time, requiring significant updates in the ASTM standards. The E1527-21 standard, for instance, provides a more detailed and clearer definition compared to its predecessors (E1527-05 and E1527-13). This evolution reflects the growing complexity and importance of environmental due diligence in real estate transactions.

Types of RECs

There are three primary types of RECs:

1. Historical Recognized Environmental Condition (HREC): This refers to a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority, meeting unrestricted use criteria without subjecting the property to any required controls.
2. Controlled Recognized Environmental Condition (CREC): This involves a past release that has been addressed, but hazardous substances or petroleum products remain in place under required controls such as property use restrictions, institutional controls, or engineering controls.
3. De Minimis Condition/Environmental Concerns: Although not classified as a REC, a de minimis condition/environmental concern refers to a situation where the presence of hazardous substances or petroleum products does not pose a significant risk to human health or the environment and does not warrant further investigation or remediation.

Identification and Assessment Process

The identification of RECs is a systematic process carried out during Phase I ESAs. This process involves:

1. Records Review: Examining historical and current records related to the property, including previous environmental assessments, regulatory filings, and land use records.
2. Site Inspection: Conducting a physical inspection of the property to identify visible signs of contamination, such as stained soil, unusual odors, or abandoned containers.
3. Interviews: Engaging with property owners, occupants, and local authorities to gather information about past and present uses of the property and any known environmental issues.
4. Report Preparation: Compiling the findings into a comprehensive report that outlines the identified RECs, their potential impacts, and recommendations for further action if necessary.

Implications of RECs

Identifying RECs has several implications for property transactions:

1. Financial Impact: Properties with RECs may require costly remediation efforts, which can affect their market value and the financial viability of transactions.
2. Legal Liability: Buyers and sellers must be aware of potential legal liabilities associated with environmental contamination. Failure to address RECs can result in regulatory penalties and lawsuits.
3. Transaction Delays: The presence of RECs can delay property transactions as parties negotiate remediation responsibilities and costs.

Managing RECs

Effective management of RECs involves several steps:

1. Further Investigation: Conducting Phase II ESAs to determine the extent of contamination and the necessary remediation measures.
2. Remediation: Implementing cleanup efforts to address identified contamination, which may include soil excavation, groundwater treatment, or the installation of engineering controls.
3. Monitoring and Maintenance: Establishing ongoing monitoring and maintenance programs to ensure that remediation efforts remain effective and that the property remains compliant with regulatory standards.

How GPRS Supports the Environmental Sector

As a trusted leader in damage prevention within the environmental sector, GPRS provides dependable results from the initial investigation through delineation, remediation, and project completion.

With a nationwide network of Project Managers, we are prepared to mobilize quickly for projects across the United States. Utilizing state-of-the-art ground penetrating radar (GPR) scanners, electromagnetic (EM) locators, remote-controlled video pipe inspection (VPI) crawlers and push-fed sewer scopes, acoustic leak detection and leak noise correlators, and more, we Intelligently Visualize The Built World^® to keep your environmental projects on time, on budget, and safe.

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Frequently Asked Questions

What is the difference between a Phase I and Phase II Environmental Site Assessment?

A Phase I Environmental Site Assessment (ESA) is a preliminary, non-intrusive investigation to identify potential environmental risks or recognized environmental conditions (RECs) through records reviews, site inspections, and interviews. If RECs are identified, a Phase II ESA is conducted as a more detailed, intrusive investigation involving soil, groundwater, or air sampling to confirm and characterize contamination. While Phase I focuses on identifying potential risks, Phase II provides concrete data to guide remediation or determine the extent of contamination.

Why do I need to hire a professional utility locating company to locate and mark out all buried utilities prior to beginning an ESA?

Locating buried utilities is essential prior to a Phase I or Phase II Environmental Site Assessment to ensure the safety of field personnel and prevent damage to underground infrastructure during site activities. It minimizes the risk of striking utilities, which could result in costly repairs, project delays, or hazardous situations like gas leaks or electrical incidents. Additionally, accurate utility mapping helps guide subsurface investigations, ensuring that drilling or sampling locations are appropriately cleared and positioned for reliable environmental data collection.