Phase I ESA vs. Preliminary Assessment in New Jersey

Why Both Reports Matter in New Jersey

When buying or selling commercial or industrial property in NJ, completing

both a Phase I Environmental Site Assessment (ESA) and a Preliminary Assessment (PA)

is the only way to fully protect yourself from liability under federal and state law.

✔ Phase I ESA meets federal due diligence (ASTM E1527).

✔ Preliminary Assessment satisfies NJ Spill Act requirements.

✔ Together, they protect your investment and reduce costly surprises.

Quick Comparison

Phase I ESA

👉 Federal standard (ASTM E1527)

👉 Identifies RECs (Recognized Environmental Conditions)

👉 Used nationwide by lenders & investors

👉 May recommend a Phase II ESA if RECs are found

👉 Protects under CERCLA (federal law)

Preliminary Assessment (PA)

👉 State requirement (NJDEP TRSR)

👉 Identifies AOCs (Areas of Concern)

👉 Specific to NJ real estate transactions

👉 May require a Site Investigation if AOCs are found

👉 Protects under NJ Spill Act (state law)

Real-World Impact

Skipping a Preliminary Assessment can cost hundreds of thousands of dollars in remediation

and legal fees. NJ courts have ruled: without a PA, you lose the “innocent purchaser”

defense.

The Bottom Line

In New Jersey, a Phase I ESA alone is not enough. For true protection:

Always complete BOTH a Phase I ESA and a Preliminary Assessment.

Oak Environmental Consulting & Services

Serving all of New Jersey – “We Jersey all day, every day.”

www.oaknj.com | ☎ 551-525-3211