Due Diligence Disruptions

Addressing Emerging PFAS Risks in Site Assessments and Property Transactions

When the U.S. Environmental Protection Agency (EPA) finalized the PFAS Designation Rule last year, the change introduced expanded PFAS-related requirements, increased litigation proceedings, and more uncertainty about the evolving regulatory landscape. By designating PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the regulatory milestone created lasting implications for environmental due diligence and added requisites to the Phase I ESA process under ASTM Standard E1527-21.

As a result, environmental due diligence and real estate acquisitions have become more complex across the board—from industrial and commercial sites to farmlands and residential areas—because of the presence of PFAS, especially in unexpected sources. Langan’s PFAS team actively evaluates these overlooked pathways (e.g., stormwater infrastructure, biosolids, residential septic systems), keeping clients abreast of emerging risks, potential insurance coverage implications, and historical liability concerns.

AGRICULTURAL

Concerns related to PFAS contamination in agricultural land have grown in recent years, particularly due to the use of biosolids, or sewage sludge, as fertilizer. In 2024, this issue gained national attention when PFAS were found in crops, soil, and livestock on farms that had applied contaminated biosolids. These findings led to significant liabilities, land devaluation, and, in some cases, loss of market access for affected farmers. However, a 2025 EPA study added nuance to the concern, finding that while 31% of sewage sludge is land-applied, it’s concentrated on only about 1% of United States cropland, suggesting limited risk. However, for the areas where it exists, the consequences can be significant. To add another layer of complexity, PFAS have historically been a component in certain pesticides. Yet much of the public information about biosolids and pesticide use on agricultural sites comes from interviews with farmers, sometimes decades after the application, which introduces the potential for memory gaps and inconsistent recordkeeping, further compounding associated challenges.

AFFF & INDUSTRIAL

When conducting due diligence at an industrial facility, the presence of an aqueous film-forming foam (AFFF) system or fire extinguisher does not necessarily constitute a recognized environmental condition in the context of a Phase I ESA. Environmental professionals must evaluate if any causes for AFFF deployment occurred at the site and led to discharge into the environment. Site- or building-specific factors about the area of deployment—such as the presence or absence of containment areas, berms, pavement, and floor drains—should also be evaluated. As with agricultural use, accurate information about AFFF deployment relies on proper record-keeping at each facility, including historical maintenance logs and release records, which are often incomplete.

RESIDENTIAL

Residential septic systems warrant attention during due diligence for property transactions. Household products containing PFAS (e.g., cleaning agents, personal care products, nonstick cookware residues, treated fabrics) can accumulate in septic sludge and leach fields, which may impact surrounding soil and groundwater. Because septic systems are not typically designed to filter out PFAS, they can serve as an unmonitored pathway for the chemicals to enter the environment, posing risks to drinking water sources and nearby ecosystems.

While the type of property in question can vary significantly, the presence of PFAS on a site poses potential legal risks for all parties involved in the transaction. Langan understands that every transaction is unique and conducts thorough evaluations of each site to equip clients with the knowledge and assurance needed to confidently move forward.

Chelsea Haglage is an Ohio Voluntary Action Program Certified Professional and environmental scientist in Langan’s Cleveland office with over 12 years of experience. Her expertise includes due diligence activities, surface logging, environmental sampling, on-site health & safety, and construction oversight for remediation projects. Throughout her career, Haglage has conducted due diligence for projects in Ohio, Michigan, Pennsylvania, New York, New Jersey, Massachusetts, Missouri, Kansas, Texas, and California.

Anna Statkiewicz has over 11 years of environmental experience with a primary focus on site characterizations and remediation projects. Located in Langan’s Pittsburgh office, Statkiewicz’s expertise includes due diligence assessments, remedial investigations and designs, vapor intrusion investigations, storage tank removals, wetland delineation and stream identification, and local zoning permits.