Water Supply and Sewage Treatment NAICS 221310, 221320

Nov 23, 2025 - Proposed EPA Rule Would Curtail Protection for Wetlands

• The Trump administration has proposed limiting the Environmental Protection Agency’s authority to regulate pollution in wetlands, rivers, and streams, according to The New York Times. The move could strip protections from up to 55 million acres of wetlands and threaten clean drinking water supplies. By narrowing the definition of protected waters to those with year-round or seasonal flow, the rule would exclude many intermittent and ephemeral streams, which provide more than half of the water flowing through river systems used for drinking supplies. The proposal follows the 2023 Supreme Court decision in Sackett v. EPA, which reduced federal oversight. Environmental groups warn the changes could lead to unsafe water and higher treatment costs, while industry groups, including agriculture, home builders, oil drillers, and real estate developers, suggest the change will reduce regulatory burdens.
• The Environmental Business Journal estimates the 30-year market potential for managing PFAS contamination at $132 million, the lowest projection since 2019, reflecting regulatory shifts under the Trump administration, according to Waste Dive. While remediation is expected to dominate at nearly $88 million, drinking water and wastewater spending are projected at $24 million and $20 million, respectively. Despite muted forecasts, companies are expanding capacity, with SGS quadrupling PFAS testing and Veolia pledging more than 100 treatment sites, including a $35 million drinking water facility in Delaware. Recent EPA tests confirmed destruction efficiencies of 99.9999% for certain PFAS chemicals, but mixed regulatory actions, including limits on wastewater sludge oversight, create uncertainty. The evolving landscape highlights both challenges and opportunities for utilities tasked with safeguarding drinking water and managing sewage treatment amid rising demand for PFAS solutions.

• 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.