What Are PFAS?

Per- and polyfluoroalkyl substances (PFAS) are a large group of synthetic chemicals used for decades because they resist heat, water, oil, and stains. Because they break down very slowly, PFAS are often referred to as “forever chemicals.”

PFAS have been used in products such as:

  • Firefighting foams
  • Industrial manufacturing processes
  • Metal plating operations
  • Waterproof textiles
  • Non-stick coatings
  • Food packaging
  • Electronics manufacturing
  • Chemical production

Their persistence in the environment has led to increased regulation by both New Jersey and the federal government.

Why Is New Jersey a Leader in PFAS Regulation?

New Jersey has adopted some of the nation’s most comprehensive PFAS regulations. The state established drinking water standards for PFOA, PFOS, and PFNA, designated those chemicals as hazardous substances, expanded groundwater discharge requirements, and adopted groundwater quality standards and remediation standards for several PFAS compounds, including GenX. (NJDEP)

These regulations affect many businesses involved in:

  • Manufacturing
  • Industrial operations
  • Waste management
  • Commercial redevelopment
  • Environmental remediation
  • Water treatment
  • Chemical handling

Which Businesses Are Most Likely to Be Affected?

Not every business will have PFAS compliance obligations, but certain industries face increased regulatory scrutiny because of their operations or historical use of PFAS-containing materials.

Industries commonly affected include:

  • Chemical manufacturers
  • Metal finishing facilities
  • Airports
  • Fire training facilities
  • Industrial laundries
  • Landfills
  • Recycling operations
  • Wastewater treatment facilities
  • Manufacturers using PFAS-containing products

Businesses purchasing older industrial properties should also evaluate whether historical PFAS contamination may affect redevelopment plans.

How Can PFAS Affect Commercial Real Estate Transactions?

PFAS contamination can complicate commercial property sales, financing, redevelopment, and environmental due diligence. Lenders, buyers, and investors increasingly evaluate PFAS risks during property acquisitions, particularly for industrial sites.

Environmental due diligence may include:

  • Phase I Environmental Site Assessments
  • Phase II sampling when appropriate
  • Groundwater testing
  • Historical operational reviews
  • NJDEP file reviews
  • Evaluation of prior industrial activities

If PFAS contamination is identified, buyers may negotiate contractual protections or require additional environmental investigation before closing.

What Are a Business’s Potential Regulatory Obligations?

Depending on the nature of its operations, a business may have obligations related to testing, reporting, permitting, remediation, or environmental compliance. These requirements vary by industry and the applicable environmental program.

Potential obligations may include:

  • Sampling groundwater or drinking water
  • Evaluating industrial discharges
  • Addressing contamination during site remediation
  • Complying with NJPDES permit requirements
  • Investigating historical releases
  • Maintaining environmental records
  • Implementing corrective actions where required

Because New Jersey’s PFAS regulations continue to evolve, businesses should periodically review their compliance programs. (NJDEP)

How Do PFAS Regulations Affect Site Remediation?

PFAS have become an increasingly important consideration during environmental investigations and remediation projects. New Jersey has adopted remediation standards for several PFAS compounds, and remediation professionals may need to evaluate PFAS when contamination is unknown or poorly documented. (Business.NJ.gov)

PFAS may arise during:

  • Brownfield redevelopment
  • Industrial property cleanup
  • Groundwater investigations
  • Soil remediation
  • Environmental due diligence
  • Licensed Site Remediation Professional (LSRP) projects

When PFAS contamination is discovered, the scope and cost of remediation may increase depending on site conditions and applicable standards.

How Can Businesses Prepare for PFAS Compliance?

Businesses can reduce regulatory risk by identifying potential PFAS issues before they become enforcement or remediation problems. A proactive compliance strategy helps companies understand whether PFAS may be present in their operations, waste streams, or properties and allows them to respond to changing regulations more effectively.

Practical steps include:

Review Current and Historical Operations

Determine whether PFAS-containing materials have been:

  • Manufactured
  • Used in production
  • Stored on-site
  • Discharged through wastewater systems
  • Used in firefighting foam
  • Incorporated into industrial processes

Historical operations can be just as important as current activities, particularly on older industrial properties.

Evaluate Environmental Permits

Businesses should review applicable environmental permits to determine whether changing PFAS regulations may affect:

    • Industrial wastewater discharges
    • Stormwater compliance
    • Groundwater monitoring
    • Drinking water obligations
    • Waste management practices

Update Environmental Due Diligence

Companies purchasing or redeveloping industrial property should consider whether PFAS should be evaluated during environmental investigations based on the property’s history and intended use.

Maintain Good Environmental Records

Accurate documentation of:

    • Chemical inventories
    • Environmental sampling
    • Waste disposal
    • Operational changes
    • Compliance activities

can help demonstrate responsible environmental management if questions arise.

Monitor Regulatory Developments

Both New Jersey and the federal government continue to expand PFAS regulations. Businesses should periodically review new requirements that may affect their operations, permitting obligations, or remediation responsibilities.

What Are Common Misconceptions About PFAS Regulations?

Because PFAS regulation continues to evolve, many businesses misunderstand when these requirements apply. Understanding the scope of PFAS regulation can help companies make informed decisions about compliance and risk management.

Misconception: PFAS only affects chemical manufacturers.Reality: Many industries have used PFAS-containing materials, including airports, manufacturers, metal finishers, landfills, wastewater facilities, and companies that historically used firefighting foam.

 

Misconception: Older contamination is no longer a concern.

Reality: Historical releases can still create environmental obligations during property transactions, redevelopment, or site remediation.

 

Misconception: PFAS regulations only concern drinking water.

Reality: PFAS regulations may affect groundwater, wastewater discharges, contaminated site remediation, hazardous substances, and environmental permitting.

 

Misconception: If a business is currently compliant, no additional action is needed.

Reality: As federal and state regulations evolve, businesses may need to reassess compliance programs, permits, and environmental investigations.

Practical Example: Purchasing an Older Manufacturing Facility

A company plans to purchase an older manufacturing property in New Jersey for expansion.

During environmental due diligence, consultants discover that previous operations used PFAS-containing materials in industrial processes. Additional groundwater sampling identifies PFAS above applicable regulatory standards.

Before completing the transaction, the buyer:

  • Conducts additional environmental investigation.
  • Reviews NJDEP records.
  • Negotiates environmental provisions within the purchase agreement.
  • Evaluates potential remediation obligations.
  • Incorporates anticipated cleanup costs into the project’s financial planning.

Although the discovery adds time to the acquisition process, identifying the issue before closing allows the buyer to make informed business decisions and reduce unexpected liability.

Key Takeaways

  • PFAS are persistent synthetic chemicals that have become a major environmental regulatory focus.
  • New Jersey has adopted some of the nation’s most comprehensive PFAS regulations.
  • Businesses involved in manufacturing, waste management, redevelopment, and industrial operations may face PFAS-related compliance obligations.
  • PFAS contamination can affect environmental permitting, site remediation, commercial real estate transactions, and redevelopment projects.
  • Environmental due diligence should consider PFAS where historical operations indicate potential exposure.
  • Monitoring regulatory developments and maintaining strong compliance programs can help businesses manage evolving PFAS requirements.

When Should You Contact an Attorney?

Businesses should consider consulting an environmental attorney whenever PFAS contamination, regulatory compliance, or potential liability could affect their operations or property. Legal guidance can help businesses evaluate regulatory obligations, allocate environmental risk during commercial transactions, and respond to agency inquiries or enforcement actions.

An environmental attorney may be helpful when:

  • PFAS contamination is discovered during due diligence.
  • A commercial property transaction involves potential PFAS liability.
  • NJDEP or EPA requests information regarding PFAS.
  • Environmental permits may be affected by PFAS regulations.
  • Site remediation includes PFAS investigation or cleanup.
  • Contract negotiations involve environmental indemnification.
  • A business faces potential regulatory enforcement.

Early legal guidance can help businesses understand evolving PFAS requirements while protecting their operational and financial interests.

PFAS regulations continue to reshape environmental compliance for businesses across New Jersey. The Law Office of Alan S. Ashkinaze advises manufacturers, commercial property owners, developers, industrial businesses, and investors on PFAS compliance, environmental due diligence, site remediation, NJDEP permitting, regulatory enforcement, and contaminated property transactions. Contact The Law Office of Alan S. Ashkinaze to discuss how PFAS regulations may affect your business or real estate project.