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The process may also include determining the presence of any chemical residue present on structures, identification of asbestos traces on building materials, inventory of hazardous substances stored or used on the site and numerous other procedures.

This type of environmental due diligence is a relatively new occurrence. Certain events that occurred in the late 1970s (most notably the Love Canal tragedy), have forced authorities to pass laws protecting consumers and the environment from potential contamination.

Because of the Love Canal incident, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), more commonly known as Superfund, was passed by the United States Congress. However, due to insufficient funding, little was accomplished in regulating hazardous wastes. Amendments were made and the Superfund Amendments and Reauthorization Act of 1986 (SARA) was passed, which led to more funding and provided more studies and new technology.

In 1998, performing of a Phase I environmental site assessment was emphasized in the Superfund Cleanup Acceleration Act of 1998. The passing of this law required real estate entities to perform a Phase I ESA in order to meet the specific, exacting standards of ASTM E-1527: Standard Practice for Environmental Site Assessments - Phase I Environmental Site Assessment Process.

Laws and amendments thereafter introduced the kind of environmental due diligence on properties that are to be sold or acquired to prevent a harmful incident from happening again. Today, due diligence is performed before any construction or development takes place, in order to ensure there are no hazardous substances or contamination present on the property.

Several experts also focused on studying these procedures, in order to ensure that only the highest, most stringent standards are used in scrutinizing any subject property. This led directly to private companies offering environmental engineering services, which includes Phase I and Phase II ESA, site remediation, risk assessment, and property condition assessments.

Like the United States, Canada also has rigorous environmental laws. The Canadian government passed the Environmental Assessment Act in 1992. Like the Superfund law, the EAA provided a legal basis for federal environmental assessment on properties.

The process of a Phase I ESA doesn't necessarily involve actual physical sampling and testing. Records from the past are commonly the basis of the study as to whether the property may contain any potential hazards. Site examination may include inventory of hazardous substances stored on the property, any traces of asbestos on building materials, observation of soil and water quality and any chemical residue.

Conducting a Phase I ESA, while it may not entirely remove the possible threat of pollution, is a great leap in preventing any further health damage or loss of life due to environmental contamination and pollution.

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