Understanding the EPA’s New PFAS Regulations: What Property Owners and Buyers Need to Know

On April 19, 2024, the United States Environmental Protection Agency (EPA) announced the designation of two per- and polyfluoroalkyl substances (PFAS)—perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS)—as hazardous substances under the Superfund Law. This reclassification marks a significant shift from their previous status as emerging contaminants, with profound implications for commercial real estate transactions.

Key Implications for Property Owners and Buyers:

Expanded Environmental Investigations:
The reclassification will necessitate a broader scope for Phase I and Phase II environmental investigations in commercial real estate transactions.

Impact on Due Diligence:
These regulatory changes could influence price negotiations, property valuations, and future environmental liabilities associated with PFAS remediation efforts.

Increased Risk:
Long-term effects may include ‘reopeners’ at state environmental agencies, heightening the risk for purchasing or redeveloping properties impacted by PFAS.

Lender Considerations:
While Phase I and II reports might not be directly impacted, lenders are likely to re-evaluate their criteria, potentially affecting financing options for clients.

Why This Matters

For property owners, understanding these changes is crucial for managing assets and planning future transactions effectively. Prospective buyers need to be aware of these new regulations to make informed decisions and accurately assess potential risks.

Learn More

For detailed information, please read the full article here.

At Sentry Commercial, we are committed to keeping you informed about critical regulatory changes that may affect your real estate decisions. Should you have any questions or need further assistance, please do not hesitate to contact us.