Recognized Environmental Conditions (RECs) are essential in environmental due diligence, especially within the scope of Phase I Environmental Site Assessments (ESAs). According to the ASTM E1527-21 standard, a “Recognized Environmental Condition” (REC) is defined as:

1. The presence of hazardous substances or petroleum products in, on, or at the subject property due to an environmental release.
2. The probable presence of hazardous substances or petroleum products in, on, or at the subject property due to an actual or potential environmental release.
3. The presence of hazardous substances or petroleum products in, on, or at the subject property under conditions that pose a significant threat of future environmental release.

This definition is vital for environmental professionals conducting Phase I ESAs, as it helps assess whether a property may present environmental risks that could impact its value or usability.

Historical Context and Evolution

The concept of RECs has undergone significant changes over time, necessitating substantial revisions to the ASTM standards. The E1527-21 standard, for example, offers a more precise and comprehensive definition compared to its earlier versions (E1527-05 and E1527-13). This progression highlights the increasing complexity and significance 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 & SiteMap® Support 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.

All this accurate, field-verified data is at your fingertips 24/7 thanks to SiteMap® (patent pending), GPRS interactive infrastructure mapping application that gives you 24/7, secure access to your data so you can plan, design, manage, dig, and ultimately build better.

GPRS SiteMap Team Members are currently scheduling live, personal SiteMap demos. Click below to schedule your free demo today!