Proposed PFAS Liability Exemption for Passive Receivers under CERCLA: What Utilities and Biosolids Programs Should Know

Publicly owned treatment works (POTWs), wastewater utilities, and drinking water systems often receive PFAS passively from upstream sources.  Under CERCLA’s strict liability framework, these entities can face cleanup cost claims despite not manufacturing or intentionally using PFAS.  The proposed legislation seeks to narrow that exposure for compliant operations.

The “Water Systems PFAS Liability Protection Act” would shield passive receivers—public water systems and wastewater treatment facilities—from CERCLA liability for PFAS releases when operating in compliance with applicable laws. The exemption would not apply where gross negligence or willful misconduct is involved.  If enacted, the bill could materially reduce legal and financial exposure tied to PFAS contamination claims, supporting continued biosolids land application.  The bill is pending before the House Subcommittee on Water Resources and Environment, with 23 bipartisan cosponsors (14 Republican; 9 Democratic), most hailing from California. 

What the Exemption Would Do:  

  • Scope: Exempts specified passive receivers from CERCLA PFAS liability when their handling of PFAS (transport, treatment, disposal) complies with applicable laws and permits. 
  • Limits: No protection for gross negligence or willful misconduct; entities must continue meeting all relevant environmental requirements. 
  • Practical Effect: Reduced risk of third-party claims or cost recovery actions linked to PFAS releases, potentially stabilizing budgets and enabling continued biosolids management pathways. 

Current Legislative Status:  

  • Committee: House Subcommittee on Water Resources and Environment. 
  • Cosponsors: 23 total (14 Republican; 9 Democratic); most cosponsors are from California. 
  • Outlook: Bipartisan interest signals momentum.