D.C. Circuit upholds EPA designation of PFOA and PFOS as hazardous substances

The U.S. Court of Appeals for the D.C. Circuit has upheld the Environmental Protection Agency’s (EPA) 2024 designation of PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund.

In the case of Chamber of Commerce v. EPA, the court rejected challenges from industry groups regarding the EPA’s statutory authority and decision-making process. The court ruled that the EPA’s designation was legally sound, noting that the statute allows for the designation of substances based on the possibility of substantial danger rather than requiring absolute certainty of harm. The court also found that the EPA provided adequate notice and reasoned cost-benefit analyses.

The decision has prompted reactions from industry stakeholders. The American Water Works Association (AWWA) stated that while polluters should bear the cost of remediation, they expressed concern that water utilities could face significant legal and financial liability as passive receivers of these chemicals. The AWWA called on Congress to grant specific exemptions for water and wastewater utilities to protect them from claims and ensure resources remain focused on infrastructure and service affordability.