Chapter 3 Property Evaluations And Environmental Compliance Audits

Question 1

Jen has been contracted to redecorate the lobby of a mixed use building. She will work with the contractor to tear out the existing furnishings, wall coverings, and light fixtures, and will dispose of any hazardous materials based on environmental regulations. According to the resource conservation and recovery act (RCRA), who is liable for any subsequent problem or future hazard?

A. Jen

B. The contractor

C. The building owners

D. The disposal company

Answer 1

C. The building owners

Question 2

What does a phase 3 ESA accomplish?

Answer 2

The design and implementation of active and passive measures to remediate identified contamination at the site

The facilitation and preparation of all necessary reports and permits to achieve for mediation of the site to appropriate clean up standards

Question 3

What is the scope of an ESA and an ECA?

Answer 3

They provide a snapshot in time of the facilities potential environmental liability.

A one time ESA does not typically identify every EHS issue particularly attendance environmental compliance, new dedication requirements for the EHS implications of new equipment like storage tanks.

ECAs must be performed on a regular basis to ensure that the facilities compliant status is up-to-date

Question 4

What is the RCRA liability of entities that handle it hazardous waste?

Answer 4

Liability cannot be transferred from generators of hazardous waste even to properly certified waste disposal companies. Regardless of how they are disposed of, legally and carefully, any subsequent problem for future has her determination can be used as a basis of lawsuits against the original generator.

Question 5

Describe the four goals of GSR.

Answer 5

Minimizing total energy use in promoting the use of renewable energy for operations and transportation

Preserving natural resources

Minimizing waste generation while maximizing materials recycling

Maximizing future reuse operations for remediated land

Question 6

What is the purpose of RCRA?

Answer 6

RCRA -resource conservation and recovery act

Establish rules pertaining to hazardous waste generators in transporters, as well as the owners and managers of hazardous waste treatment, storage, and disposal facilities

Responsibility for administering the act lies with the EPA which makes regulations to implement it

Question 7

(Fill in the blank)________ Is included in the super fun to indicate there any individual potentially responsible party (PRP) can be held liable for the entire cost to clean up the site, even if they only contributed a small amount to the overall contamination.

A.. Mutual liability

B. Shared an assigned liability

C. Collective liability

D. Joint and several liability

Answer 7

D. Joint and several liability

Question 8

As lead engineer at the hospital, you support self audit policies and perform them regularly to check for environmental violations, and to take advantage of EPA supported incentives. Which of the following is NOT an incentive offered to owners and managers perform self audits?

A. Opt out of future site assessments

B. Significant penalty reductions

C. Extended time to correct violations

D. No recommendation for criminal prosecution

Answer 8

A.. Opt out of future site assessments

Question 9

Describe the purpose of an ECA.

Answer 9

It is meant to ensure the potential liability exposures are minimized or illuminated by ensuring the ongoing operations in activities are in compliance with environmental regulations.

Question 10

During the dude – process, and assessment was performed to identify recognize environmental conditions (REC’s) by evaluating the used, storage, treatment, or disposal of hazardous materials. Subsequently, it must be determined whether contamination is present on site, and likely source of the contamination must be identified through another investigation. What types of ESA’s have been performed?

A. Phase 1 and phase 3.

B. Phase 1 and phase 2

C. Phase 2 and phase 3.

D. Phase 1 and phase 4

Answer 10

B. Phase 1 and phase 2

Question 11

Explain joint and several liability.

Answer 11

A situation in which liability is shared in that allows any one of the responsible parties to be held liable for the entire obligation.

Question 12

The ESA investigation can be broken down into which of the following for major porch?

A. Current, future, primary, secondary

B. Primary, secondary, past, present

C. External, internal, current, future

D. Past, present, external, internal

Answer 12

D. Past, present, external, Internal

Question 13

Explain the scheduling of an ESA versus an ECA.

Answer 13

Phase 1 ESA is typically initiated by a buyer as part of property due diligence.

And ECA is initiated by the owner. It’s done periodically to ensure proper ongoing operations or perhaps in anticipation of a sale or lease, and specifies corrective actions as they occur.

Question 14

Which of the following regulations established rules specifically pertaining to the generators, transporters, and owners of hazardous waste in the duration of their liability for the waste?

A. Superfund amendments and re-authorization act (SARA)

B. Resource conservation and recovery act (RCRA)

C. Comprehensive environmental response, compensation, and liability act (CERCLA)

D. How’s your test and solid waste amendment act (HSWA)

Answer 14

B. Resource conservation and recovery act (RCRA)

Question 15

Compare the focus of the ECA with the focus of the ESA.

Answer 15

ESA is focused on the buy/sell portions of the property life cycle

ECA is focused on the activities and operations portion of the life cycle

Question 16

The Acme Hotel chain purchased a boutique hotel from a local owner. They discovered that the soil on the property had been contaminated from the use of toxic pesticides. Based on CERCLA and SARA provisions, what is required of the Acme Hotel chain as the property owners?

A.. To report the existing of the known or suspected hazardous waste and potential he be liable to clean up the contamination

B. To notify the surrounding community of the potential health and safety risk of contamination

C. To hold the previous owner liable for the remediation of the contamination by filing in the ministry of action

D. Registration of their site contamination on the EPA’s national priorities list (NPL)

Answer 16

A.. To report the existence of the known or suspected hazardous waste and potential he be liable to clean up the contamination

Question 17

What are the four parts of an ESA phase 1 investigation?

Answer 17

Past- investigations of past activities or operations Involving the use, storage, treatment, or disposal of hazardous were other regulated materials.

Present – the review of current property activities or operations involving the use, storage, treatment, or disposal of hazardous or other regularly materials

External – the review of the environmental compliance statutes concerning permits, discharges, and other regulatory issues for the property

Internal – the review of sight physical setting and historical conditions

Question 18

What is the purpose of phase 1 and phase 2 ESA’s?

Answer 18

Phase 1-Do identify recognized environmental conditions (REC’s) through evaluation of current and prior activities involving the use, storage, treatment, or disposal of hazardous materials.

Phase 2-If our ACs are identified, phase 2 can be conducted. Typically involves the subservice investigation, which consists of the sampling of sight soil’s, groundwater, and or soil vapor to a certain the presence or absence of suspected contaminants. The phase 2 investigation is primarily designed to determine whether contamination is present on site and to identify the the likely source of the contamination.

Question 19

After an underground pipe leak is discovered and investigated, I’ll design and implement a plan to remediate the contamination of waste. He also prepares the reports and permits he needs to achieve a propria cleanup standards. Al has accomplish the objectives of which type of ESA?

A. Phase 1

B. Phase 2

C. Phase 3

D. Face for

Answer 19

C. Phase 3

Question 20

What is incentive for implementing self audit policies?

Answer 20

Penalty reductions
Extended time to correct violations
Other considerations

Question 21

The green and sustainable remediation (GSR) approach aims to minimize total energy use and promote the use of renewable energy for operations and transportation, as well as maximize future use options for mediated land. What are two other goals of GSR?

A. Preserve natural resources, minimized waste generation while maximizing recycling

B. But just remediation sites to climate change, maximize energy derived from nontraditional sources

C. Maximize best practices for sustainability, minimize dependency on traditional energy sources

D. Maximize the capture and use of wasted energy by products, increased global climate change awareness

Answer 21

A.. Preserve natural resources, minimize waste generation while maximizing recycling

Question 22

Aside from performing in environmental site assessment to a sure interested parties of the value and condition of the property, what is another benefit to performing this assessment?

A. To investigate any past and/or current potential for environmental contamination

B. To collect building data to assess against environmental performance standards

C. To establish a baseline of the facilities standing related to compliance and risk management

D. To receive a penalty reduction for compliance violations disclosed during the assessment

Answer 22

A.. To investigate any past and/or current potential for environmental contamination

Question 23

(Fill in the blanks) the environmental site assessment (ESA) focuses on ________, where is the environmental compliance audit (ECA) focuses on _________.

A.. Facility operations; buying and selling property

B. Buying and selling property; facility operations

C. Punishment; prevention

D. Prevention; punishment

Answer 23

B. Buying and selling property; facility operations

Question 24

To establish liability protection for herself, Kim conducts investigations in compliance with 40 CFR before acquiring her property. She also complies with all continuing obligations after acquiring her property, and is not affiliated with any liable party through any familial, contractual, corporate, or financial relationship. Under which requirement has Kim established liability protection?

A.. Strict liability

B. All appropriate inquiries

C. Zero liability

D. No fault obligation

Answer 24

B. All appropriate inquiries

Question 25

What obligations are required due to the CERCLA and SARA?

Answer 25

CERCLA includes strict liability provisions for property owners With respect to contamination, even if the contamination occurred before the owner took title to the property

SARA amended CERCLA Added time for cleanup requirements in increased the amount of money available in the superfund.

Question 26

As a new manager you have been challenged to keep your facility in regulatory compliance at all times. Limitation factors you must consider regarding the scope of your environmental liability include all of the following eXCEPT:

A. A one time ESA does not identify every EHS issue.

B. The implications of new equipment are not always accounted for depending on when the assessment occurred.

C. ECAs must be performed on a regular basis to keep compliance up-to-date.

D. Records of environmental concerns do not need to be recorded in between assessments.

Answer 26

D. Records of environmental concerns do not need to be recorded in between assessments.

Question 27

(Fill in the blank) An _______ Is performed periodically to ensure proper ongoing operations in compliance, it specifies corrective actions when necessary.

A. Environmental site assessment

B environmental condition assessment

C. Environmental compliance audit

D. Environmental gap analysis

Answer 27

C. Environmental compliance audit

Question 28

Carlos is preparing for his facilities environmental compliance audit. The ECA will focus on all of the following EXCEPT:

A. Due diligence for the transfer of real property.

B. Operational aspects of the facility

C. Ensuring that potential liability exposures are minimized or eliminated

D. Compliance of operations and activities with environmental regulations.

Answer 28

A.Due diligence for the transfer of real property

Question 29

What must a prospective property owners do to establish liability protection under AAI?

Answer 29

AAI - All appropriate inquiries

AAI established liability protection under CERCLA for innocent landowners, or boba code purchasers

Must do all of the following:

Conduct AAI in compliance with 40 CFR (code of federal regulations)
 Comply with all continuing obligations after acquiring the property
  Not be affiliated with any liable party through familial relationship or any contractual, corporate, or financial relationship

Question 30

Miguel‘s environmental consulting company is well-established, has a proven track record of success in their industry, and has excellent testimonials from former clients to speak to their professionalism and ability to stick to the project plan. Which criteria for selecting an environmental consultant does Miguel‘s company exhibit?

A. Experience of the firm; litigation history of the client

B. Availability of reference of reputation; credit rating

C. Experience of the firm, availability of references of reputation

D. Credit rating; documented licenses, certifications, and registrations by region and discipline

Answer 30

C. Experience of the firm; availability of references of reputation

Question 31

Before Monique’s realty group could purchase a new office complex, the current owners present and past activities related to environmental liability were examined in order to provide protection to the purchasers. What type of environmental appraisal was performed?

A.. Environmental compliance audit (ECA)

B. Environmental risk analysis

C. Environmental condition assessment

D. Phase 1 environmental site assessment (ESA)

Answer 31

D. Phase 1 environmental site assessment (ESA)

Question 32

Which criteria should be used for selecting an environmental consultant?

Answer 32

Experience of the firm

Experience performing similar work in the geographic area in question or a similar industries

Documented licenses, certifications, and registrations, by geographic region and discipline

Professional liability insurance and an appropriate insurance rating (preferably A or better)

Availability of references of reputation

Litigation history of the consultant

Credit rating

Question 33

Explain the purpose of an ESA.

Answer 33

They are completed as part of the normal due diligence requirements for financing, refinancing, or foreclosure. Parties associated with the property transaction typically contract for an ESA to satisfy themselves about the value or condition of the property, including the potential for any on-site environmental contamination.

Sometimes called a transaction screen