Impacts of New PFAS Regulations on Commercial Real Estate

Jun 26, 2024

As new PFAS regulations come into effect, commercial real estate investors and lenders must navigate evolving compliance requirements. At EBI Consulting, we specialize in guiding you through these changes to protect your investments and ensure regulatory compliance.

Understanding PFAS:

Per- and polyfluoroalkyl substances (PFAS) are persistent synthetic chemicals known for their resistance to water, grease, and heat. Widely used in various industries, PFAS have raised environmental and health concerns due to their long-lasting effects and potential risks.

Key Regulatory Changes Effective July 8, 2024:

Under the latest EPA ruling, PFAS compounds PFOA and PFOS are now classified as hazardous substances under CERCLA. This designation significantly expands liability for property owners, operators, investors, and lenders.

PFAS have been linked to serious health issues, including cancers and immune system disruptions. Compliance with stringent EPA reporting requirements is now essential to mitigate risks associated with PFAS contamination.For more information on PFAS regulations, visit the EPA’s official site.

Who is Impacted?

Industry Sectors: Various sectors including textiles, cosmetics, chemicals, food packaging, airports, military bases, mining facilities, landfills, and wastewater treatment plants face heightened scrutiny under the new regulations.

Commercial Real Estate Investors and Lenders: For investors and lenders, thorough due diligence in Phase I Environmental Site Assessments (ESAs) is crucial. Identifying potential PFAS contamination could prompt further Site Investigation to assess the presence and extent of PFAS, guiding strategic decision-making regarding property acquisitions and loans.

A Strategic Approach to Compliance

Comprehensive Phase I ESA: Our ASTM-compliant Phase I ESAs include thorough evaluations for potential PFAS contamination, ensuring compliance with revised regulatory standards.

Regulatory Compliance and Risk Management: Navigating PFAS regulations requires proactive compliance strategies. Our comprehensive assessments ensure properties meet regulatory standards, minimizing liabilities and protecting investment portfolios from potential financial risks.

Risks and Liabilities of Non-Compliance

  • Legal Liability: Property owners and operators may face lawsuits from affected parties, including neighboring property owners, tenants, and environmental groups.
  • Reputational Damage: Non-compliance can harm a company’s reputation, impacting relationships with investors, customers, and the community.
  • Operational Disruptions: Regulatory enforcement actions can lead to operational disruptions, affecting business continuity and profitability.

Ready to safeguard your investments from PFAS regulatory impacts?

Contact EBI today for personalized guidance on compliance strategies and risk management in commercial real estate. Our experts are here to ensure your properties meet regulatory standards and protect your investment portfolios effectively.

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Reach out to our dedicated team for expert advice and peace of mind in navigating PFAS regulations.

For more information on PFAS regulations, visit the EPA’s official site.

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