News & Resources
News & Resources
Over the past year, New Jersey legislators and regulators have taken several actions requiring responsible parties to investigate and remediate PFAS found in the environment and to limit the use of these compounds in products.
Purchasers, owners, developers, lenders, landlords, and businesses involved with New Jersey real estate should consider PFAS risks early – particularly when a property has a history of industrial activity or other uses associated with these chemicals. PFAS contamination can affect property value, environmental due diligence, remediation costs, and potential liability.
Per- and polyfluoroalkyl substances, commonly called PFAS or “forever chemicals,” are manmade chemicals used in industrial processes and consumer products because they resist water, grease, oil, and heat. These same properties allow PFAS to persist in the environment. PFAS may be found in products such as nonstick cookware, grease-resistant food packaging, stain-resistant fabrics, certain building and cleaning products, and firefighting foam.
Research concerning the health effects of PFAS exposure is ongoing. According to the United States Environmental Protection Agency (USEPA), exposure to certain PFAS at particular levels may be associated with reproductive and developmental effects, increased risk of some cancers, reduced immune response, hormonal interference, and increased cholesterol or obesity risk. Drinking contaminated water and consuming fish from contaminated waters may result in higher exposure.
New Jersey has taken several steps to regulate PFAS and reduce exposure. The New Jersey Department of Environmental Protection (NJDEP) has established maximum contaminant levels for three types of PFAS: perfluorooctanoic acid (PFOA), perfluorooctanesulfonic acid (PFOS), and perfluorononanoic acid (PFNA) in drinking water, requiring public systems to monitor for those substances.
New Jersey also requires certain private wells subject to sale or lease to be tested for PFOA, PFOS, and PFNA. The State has designated these compounds as “hazardous substances,” and adopted groundwater quality and remediation standards for certain PFAS. Beginning in 2028, New Jersey law will also prohibit the sale and distribution of specified food packaging, cosmetics, carpet, and fabric treatments containing intentionally added PFAS and will impose labeling requirements on certain cookware containing intentionally added PFAS.
PFAS should be evaluated as part of environmental due diligence when a property’s location, history, or prior uses indicate a potential risk. The discovery of PFAS may require additional investigation, affect the scope and cost of remediation, delay a transaction, influence property value, or change how the parties allocate environmental responsibility.
Parties may need to address PFAS through expanded environmental assessments, additional testing, purchase-price adjustments, indemnification provisions, escrow arrangements, remediation obligations, access agreements, or other transaction terms.
Heightened diligence may be appropriate for properties associated with:
These uses do not necessarily establish that PFAS contamination is present. They may, however, warrant closer evaluation before a property is acquired, developed, financed, leased, or remediated.
PFAS issues can create significant legal, regulatory, and financial uncertainty. Experienced environmental counsel can help property owners, purchasers, developers, lenders, and businesses:
Our environmental attorneys assist clients with PFAS-related due diligence, regulatory compliance, remediation, liability management, and transaction structuring throughout New Jersey. Early legal guidance can help identify material risks, avoid unexpected costs, and keep a transaction moving toward closing.
