Infusion of capital into the water sector via the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), is accelerating investments in controlling contaminants such as PFAS. The IIJA devotes $10 billion for fiscal years 2022–2026 to addressing PFAS. This is divided into three primary categories: $5 billion to help small and disadvantaged communities address PFAS drinking water issues; $4 billion to help water utilities remove PFAS from drinking water supplies; and $1 billion to help wastewater utilities. All of the IIJA funding for emerging contaminants will be provided as grants or forgivable loans and prioritizes small and disadvantaged communities. The majority of these funds flow through the state revolving fund (SRF) programs, are managed directly by state entities, and are first awarded as formula grants to states before they can flow to recipients implementing projects. This is a two-step process, which results in a one- to three-year delay between when the federal funds are made available by the EPA and when the recipients receive the funds. This means that funds will be available for projects past 2026 and potentially into 2029.
Projects eligible to receive funds include the construction of new treatment facilities or upgrades to existing facilities, planning and design costs, and creation of new community water systems to supply water when privately owned wells or surface water sources are found to be contaminated. Some funds can also be used to pay for activities unrelated to building infrastructure such as household water testing, technical assistance, local contractor training, public communication and water system consolidation.
When it comes to litigation, until recently, only a small number of cases were brought against PFAS manufacturers. Now, the pace and volume of litigation is intensifying. For example, some 13,000 claimants (including dozens of state attorneys general) are participating in a multi-district lawsuit in South Carolina against PFAS manufacturers. Also, bellwether lawsuits against utility companies, energy companies, paper companies and fire equipment distributors are quickly increasing the breadth and depth of PFAS-related litigation. To be able to participate in such litigation, entities must actively, consistently and precisely track their PFAS levels and mitigation efforts.