Water Supply and Sewage Treatment NAICS 221310, 221320

Sep 23, 2025 - EPA Signals Support for Passive Receivers of PFAS

• In September, the Environmental Protection Agency (EPA) issued a press release saying the agency would retain the hazardous substances designation for two common PFAS chemicals but would support Congressional efforts to protect “passive receivers” of PFAS, according to Water Finance & Management. The hazardous substances designation through the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) imposes retroactive liability on polluters. CERCLA liability enforcement can sometimes extend to passive receivers who received pollutants in feedstocks, waste, or products. Water and wastewater utilities have been concerned about potential CERCLA liabilities since two types of PFAS (PFOA and PFOS) were designated hazardous substances in July 2024. In February, the bipartisan Water Systems PFAS Liability Protection Act of 2025 was introduced in the House. The bill enjoys broad support from water industry organizations.
• The Environmental Protection Agency’s (EPA) motion in a federal appeals court to partially vacate its 2023 PFAS drinking water standards introduces significant regulatory uncertainty for water and wastewater utilities. Citing procedural violations of the Safe Drinking Water Act, the agency acknowledged it finalized enforceable limits for four PFAS compounds without allowing adequate public comment on the regulatory determination, according to WaterWorld Magazine. If the court grants the vacatur, utilities may need to reassess compliance strategies and delay capital investments in PFAS treatment systems already underway. The proposed compliance deadline extension from 2029 to 2031 reflects EPA’s recognition of the operational and financial burdens utilities face. For utilities, the outcome could reshape monitoring plans, treatment priorities, and long-term infrastructure planning tied to PFAS mitigation.

• In mid-July, the US House Interior Subcommittee issued its Environmental and Related Agencies Bill for fiscal 2026, and it proposes funding cuts for the EPA and two water infrastructure programs. The bill would reduce spending on the Drinking Water State Revolving Fund (DWSRF) by 19% from $1.1 billion in fiscal 2025 to $894.7 million. The proposed legislation, which has passed to the Senate, also includes a 25% reduction in funding for the Clean Water State Revolving Funds (CWSRF) program, which, through the EPA, provides clean water grants to all 50 states and Puerto Rico. Under the proposed bill, funding for CWSRF would fall from $1.6 billion in fiscal 2025 to about $1.21 billion. In a statement responding to the budget proposal, the Association of Metropolitan Water Agencies said the 20% cut to DWSRF would further strain financially strapped water systems and challenge their ability to maintain services.
• The global smart water metering market has grown to a value of $6.8 billion as the sector has become a key driver of the water utility industry’s digital transformation, according to Bluefield Research. In 2024, smart metering accounted for 25% of digital spending by water utilities. Technologies like automated meter reading and advanced metering infrastructure help utilities better manage water system assets, measure water more accurately, reduce lost revenue, and improve customer engagement. About 20 vendors control more than three-quarters of the smart metering market. However, smart metering is attracting new entrants, including software and telecom firms, to a traditionally hardware-focused industry.