# What is a Recognized Environmental Condition (REC) and Why Does it Matter?

- Link: https://moran.rocks/what-is-a-rec-and-why-it-matters/
- Published: 2024-04-04T23:47:26-04:00
- Author: Nicholas Moran

## Recognized Environmental Conditions (RECs): Understanding This Key Environmental Assessment Term

When it comes to real estate and property development, there’s an important environmental
assessment term you need to be familiar with: Recognized Environmental Condition(
REC). But what exactly is a REC, and why does it matter?

A Recognized Environmental Condition, or REC, is a term used in the [Phase I Environmental Site Assessment (ESA)](https://moran.rocks/phase-1-environmental-site-assessment/)
process to describe the presence, or likely presence, of any hazardous substances
or petroleum products in, on, or at a property due to a release to the environment.
In other words, a REC indicates there is evidence that a harmful substance has been
released and may still be present on the property.

Identifying RECs is a crucial part of evaluating the environmental risks and liabilities
associated with a property. Finding a REC means that further investigation, known
as a[ Phase II ESA](https://moran.rocks/phase-2-environmental-site-assessment/),
is needed to determine the extent of any contamination and potential risks.

If you are concerned that you may have a REC on your property, reach out to MORAN
ROCKS and we will be able to assist you.

## How are RECs Identified?

RECs are identified through the comprehensive review conducted during a Phase I 
ESA. This process involves:

 * Historical record reviews – Examining past uses of the property and surrounding
   area to identify any activities that may have involved hazardous materials.
 * Site inspections – Physically evaluating the property for any visible signs of
   contamination, storage of hazardous materials, or evidence of spills/releases.
 * Interviews – Talking to current and past owners, occupants, and other knowledgeable
   parties to gather information about the property’s history.
 * Regulatory database reviews – Checking government records for any reported spills,
   leaks, or other environmental incidents associated with the property.

If the Phase I ESA uncovers evidence of a past release or material threat of a future
release of hazardous substances, this is documented as a REC. Common examples of
RECs include:

 * Underground storage tanks
 * On-site hazardous materials storage
 * Past industrial or commercial uses involving chemicals
 * Spills or leaks identified in records

## Why Do RECs Matter?

Recognized Environmental Conditions are an important consideration for anyone involved
in real estate transactions or property development projects. Identifying RECs is
crucial because it:

 * Helps assess environmental liability and risk
 * Triggers the need for further environmental investigation
 * Impacts the value, use, and redevelopment potential of a property
 * Can lead to requirements for cleanup or mitigation efforts

Ultimately, properly identifying and addressing RECs is essential for protecting
human health, the environment, and your investment in a property. By understanding
what a REC is and how it’s identified, you can make more informed decisions and 
better manage environmental risks.