If you are buying land or a building in Ontario, your lawyer or lender will almost certainly ask for a Phase I Environmental Site Assessment (ESA). Here is what it involves, when it leads to a Phase II, and how to plan both around your deal.
Phase I: a records review, not a test
A Phase I ESA looks for signs that a property may be contaminated. The consultant reviews historical records, aerial photographs, fire insurance plans and government databases, visits the site, interviews people who know it, and looks at neighbouring properties. No samples are taken.
The result is a list of areas of potential environmental concern, with a recommendation: either no further investigation is needed, or a Phase II is.
Phase II: confirming what is actually there
A Phase II ESA tests the concerns raised in the Phase I. It usually involves drilling boreholes or digging test pits, installing groundwater monitoring wells, and sending soil, groundwater or soil vapour samples to an accredited laboratory. Results are compared to the provincial site condition standards.
Common triggers for a Phase II include:
- Former or current fuel storage tanks, on the site or next door
- Past industrial use, auto repair, dry cleaning or gas stations
- Fill of unknown origin
- Records of spills
CSA or O. Reg. 153/04? Choose early
There are two versions of each phase. The CSA standards (Z768 for Phase I, Z769 for Phase II) are used for most purchases and financing. The provincial versions under O. Reg. 153/04 follow stricter rules and are required if you need to file a Record of Site Condition (RSC).
An RSC is generally needed before a property changes to a more sensitive use, such as from commercial or industrial to residential. If there is any chance you will redevelop for housing, do the provincial version from the start. Otherwise you may pay for much of the work twice.
Timing your conditional period
- A Phase I typically takes a few weeks, mostly waiting on records.
- A Phase II adds several more weeks for drilling, lab analysis and reporting.
- If contamination is found, delineation and remediation planning take longer again.
Tell your consultant your condition date on day one. A good consultant will warn you early if a Phase II looks likely, so you can negotiate an extension before time runs out.
Save money by combining drilling
If you also need a geotechnical investigation, combine it with the Phase II. One drill rig and one mobilization for both saves cost and time, and the data can also support your excess soil planning later.
This article is general information, not legal advice. Requirements depend on the property, the planned use and the municipality.