The local Department of Health and Environmental Control can usually provide guidance relative to which contaminants, if any, are prevalent in your project area.

Company states the following:" Due to the presence of damaged asbestos containing materials and debris, a Procedure 5 (P5) cleanup plan is required to be generated by a Certified Asbestos Consultant (CAC), such as JLM Environmental, and approved by the SCAQMD prior to asbestos abatement in accordance with SCAQMD Rule 1403."

1) glad you know your error now but I guess it's about minimizing damage now; in future I think anytime there's an environmental question beforehand about a property the ideal situation is you get what's called IIRC a 'no further action' letter before purchase otherwise pollutants in ground can be pursed by lawyers even though property has been sold to another owner 2) if you have 2 widely varying quotes, I think you need to drill down deeply into what both quotes are and are not covering and then probably get a 3rd quote with as much detail as possible to also compare

seller wouldn't pay for a Phase 2 (assuming we are talking environmental)...

Unfortunately in CA the environmental regulations have driven the cost of EVERYTHING used in construction up.

Environmental Protection Agency, and a residential building energy analysis, as defined in § 54.1-1144, in accordance with the terms and conditions as may be contained in the real estate purchase contract, but in any event, prior to settlement pursuant to such contract.

But, depending on the property you’re buying, you may not need to review every single one of these (this is where a real estate agent or broker can be helpful as well):Population and job growthHousehold median income trendsAccess to public transportation and amenitiesNeighborhood and school rankingsUnemployment rateCrime rateBusiness openings and closingsNew development activity that could help or harm your intended investmentProperty value trendsFair market rent trendsPercentage of renter-occupied householdsMarket vacancy trendsGross rent collectedMaintenance and repair expensesUtility expensesProperty management, leasing, and advertising feesInsurance expense including past insurance claims, need for flood insurance, and the cost of homeowners and landlord insuranceProperty taxes and potential increase due to change in ownershipProof that any sales tax collected on rent has been remitted and is up to datePhysical property inspections including structural and mechanical, wood-destroying organisms, radon, and lead-based paintTitle commitment on the property and legal descriptionMost recent ALTA (American Land Title Association) surveyZoning or use certificate for property in rural or unincorporated areasNew survey, septic report, and well water report for rural propertiesPhase I environmental report for property near industrial areasHOA covenants, conditions, and restrictionsHOA financial reports including P&L and balance sheetReview of seller financial statements including a copy of the seller’s tax return to verify income and expenses are true as reported to the IRS going back two or three yearsReview of tenant file including the lease terms and conditions, deposit amount, tenant application, and background and credit checksCopies of existing service contracts such as landscaper or current property managerList of all outstanding invoice and proof of payment for all work recently doneLien search to verify there are no existing worker’s liensHistory of insurance claims on the property going back three yearsVerification that property appraisal is for at least the contract purchase price if not moreCompare your pre-offer pro forma analysis to the seller’s reports to make sure the deal still makes sense.Good Luck!

Should we get an environmental inspection done?

Avoid any property that used to be a gas station or a dry cleaner (on-site cleaning), because mortgage lenders are likely to turndown these loan applications due to environmental issues.

They do it partially for cost savings, but also as part of their environmental impact statement.