Phoenix, Ariz.— At the Arizona Corporation Commission’s Regular Open Meeting on August 13, 2024, the Commission voted 5-0 to send a letter to the Arizona congressional delegation in support of federal legislation exempting water and wastewater utilities from liability under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) for release of two per- and polyfluoroalkyl substances (“PFAS”).
Commissioner Myers docketed a letter on July 29, 2024, asking his fellow Commissioners to join him in sending a letter to the Arizona congressional delegation in support of federal legislation that would shield water and wastewater customers from higher rates due to new Environmental Protection Agency (“EPA”) regulations.
Pursuant to CERCLA, EPA recently designated two PFAS—perfluorooctanoic acid (“PFOA”) and perfluorooctanesulfonic acid (“PFOS”)—as hazardous substances. This final rule became effective on July 8, 2024. Under this rule, water utilities could be held liable for their disposal of PFOA or PFOS treatment media or residuals, and wastewater utilities for their disposal of sewage sludge that contains PFOA and PFOS.
“Even though these utilities are passive receivers of these substances and not manufacturers of them,” wrote Commissioner Myers in his letter, “they nonetheless can be held liable for cleanup costs and natural resource damages. These costs would ultimately be borne by their customers.”
The EPA has clarified in a policy statement that it intends to pursue parties that manufactured PFAS or used PFAS in the manufacturing process, as well as federal facilities and other industrial parties.
“However, the EPA enforcement policy does not prevent third parties from bringing CERCLA cost recovery lawsuits against water and wastewater utilities, and the EPA can change its policy at any time,” commented Commissioner Myers, “that is why federal legislation is needed to protect customers from higher costs due to these new EPA regulations.”
For more information, please contact Amanda Hasty at myers-web@azcc.gov.