American Water Prepared to Meet Final U.S. EPA PFAS Rule
- None.
- None.
Insights
The announcement by American Water regarding its readiness to meet the U.S. EPA's national drinking water standards for PFAS is a significant development within the utilities sector. This proactive stance on compliance not only demonstrates corporate responsibility but also aligns with the growing regulatory scrutiny over environmental contaminants. The ability of American Water to leverage its experience from state-level PFAS regulations to meet federal standards indicates a robust internal process for quality assurance and risk management.
Furthermore, the advocacy for equitable access to federal and state funds for all water utility providers reflects an understanding of the financial implications associated with infrastructure upgrades needed for compliance. By pushing for policies that exempt water utilities from financial liability for PFAS under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), American Water is seeking to mitigate potential financial burdens that could impact the sector at large.
From an environmental policy perspective, their actions may set a precedent for other companies in the industry, potentially leading to a more uniform approach to managing PFAS across the board. This could benefit consumers by ensuring safer drinking water while also offering a level playing field for utility providers in terms of compliance costs.
Investors should note American Water's strategic positioning in response to the EPA's PFAS regulations. The company's early adoption of treatment systems, such as ion exchange and granular activated carbon, suggests a forward-thinking approach to capital investment. This can be seen as a positive signal of management's commitment to regulatory compliance and operational excellence.
However, the financial implications of such compliance measures must be considered. While American Water is seeking to defray costs through litigation and government funding, the extent to which these efforts will be successful remains uncertain. The company's ability to secure funding and manage compliance costs effectively will be critical in maintaining its financial health and, by extension, its stock performance.
Moreover, the company's call for permanent federal funding for a low-income water program indicates a strategic approach to corporate social responsibility, which may enhance its reputation among consumers and investors alike. Nonetheless, the actual impact on the company's bottom line will depend on the balance between the costs incurred for PFAS compliance and the potential financial support received from external sources.
“While we are assessing any changes from the proposed rule to the final rule, we have been preparing for full compliance, from capital planning to engineering to water quality. We have already gained significant experience from complying with individual state PFAS requirements and have been doing so for quite some time. We strongly support these efforts to protect public health,” said M. Susan Hardwick, President and CEO of American Water.
The following are just a few examples of where American Water has been actively treating PFAS in drinking water across its national footprint:
New Jersey American Water constructed a 3 million gallon per day ion exchange treatment system for PFAS removal at one of its well stations for drinking water supplied from that well field. This innovative project earned New Jersey American Water the New Jersey Alliance for Action’s Leading Infrastructure Project Award in February 2021.
Pennsylvania American Water recently installed a new granular activated carbon treatment system for PFAS removal at one of its water treatment plants. The new treatment process was brought online in 2023.
California American Water placed a PFAS treatment unit into operation in 2017 at one of its groundwater facilities to address elevated PFAS levels.
“While we continue to prepare for compliance with the new rules, we are advocating for funds to help mitigate compliance costs from both those who created the problem through participation in multi-district litigation and government funding. Further, we believe that all water and wastewater utility providers, whether privately or municipally owned, should have equal access to any Federal and/or state funding related to treating PFAS. We’ll also continue to advocate for permanent Federal funding for a water and wastewater low-income program,” added
American Water also joins other water organizations urging the
To learn more about all that American Water is doing related to mitigating PFAS, click here.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240409169686/en/
Ruben Rodriguez
Senior Director, External Communications
American Water
(856) 955-4180
ruben.e.rodriguez@amwater.com
Source: American Water
FAQ
What are American Water's plans regarding the final EPA's national drinking water standards for PFAS?
In which states has American Water been actively treating PFAS in drinking water?
What treatment systems has American Water implemented for PFAS removal?
What award did New Jersey American Water receive for its PFAS treatment project?
What advocacy efforts is American Water involved in regarding PFAS compliance costs?
What policies is American Water urging decision-makers to implement regarding PFAS financial liability?
