H.R. 1267: Water Systems PFAS Liability Protection Act

This bill, known as the Water Systems PFAS Liability Protection Act, aims to provide liability protection to certain entities regarding the management and disposal of harmful chemical substances known as perfluoroalkyl and polyfluoroalkyl substances (PFAS). These substances are often found in water systems due to their widespread use and persistence in the environment. The key elements of the bill include:

Exemption from Liability

The bill exempts specific entities, termed "protected entities," from liability under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for costs related to the release of covered PFAS substances into the environment. The following entities are identified as protected:

• Public water systems
• Publicly or privately operated treatment works
• Municipalities with stormwater discharge permits
• Political subdivisions of a state acting as wholesale water agencies
• Contractors managing disposal activities for any of the above entities

This exemption applies regardless of any environmental claims for costs or damages arising from the management of these hazardous substances, provided certain conditions are satisfied.

Conditions for Exemption

The liability exemption will only take effect if the protected entity has adhered to applicable laws at the time of the activity. Specifically, it concerns how they manage or dispose of covered PFAS substances. The law outlines the following conditions:

• Entities must handle, transport, or treat the PFAS substances in compliance with regulatory standards.
• The activities involve the conveyance or treatment of water under federal or state law.
• This includes proper management or disposal of byproducts from drinking water or wastewater treatment activities.

Exclusions from Liability Protection

Despite the broad protection offered, the bill specifies that liability can still be incurred if the protected entity shows:

• Gross negligence in their actions related to the substance
• Willful misconduct when managing or disposing of the covered PFAS

Definitions

The bill also provides definitions for terms such as "covered perfluoroalkyl or polyfluoroalkyl substance," focusing on non-polymeric substances containing at least two fully fluorinated carbon atoms, which excludes gases and volatile liquids. It defines the scope of the "protected entities" which will benefit from the liability exemption.

Conclusion

Overall, the bill seeks to provide a legal shield to specific water-related entities against potential liability for environmental damage connected to PFAS, as long as they follow established legal procedures and avoid gross negligence or intentional wrongdoing.

Relevant Companies

• WM (Waste Management, Inc.) - As a large waste management company, WM may be involved in managing biosolids and wastewater treatment, potentially benefiting from the liability protections offered by this bill.
• SJW Group - This water utility company could be directly impacted as it provides water services and may deal with PFAS regulations under this bill.
• American States Water Company (AWR) - As a water provider, AWR would benefit from the liability protections while managing treatment operations related to PFAS.