AGENDA REPORT
LOBBY COMMITTEE RECOMMENDED POSITIONS ON VARIOUS
FEDERAL LEGISLATIVE BILLS
Attachments: 1. Bill Summaries
RECOMMENDATION
The Beverly Hills City Council Legislative / Lobby Committee (Vice Mayor Corman and Councilmember Mirisch) recommends the City Council approve the positions taken on the bills below:
1. Support if Amended: S.2651 – ROAD to Housing Act of 2025
2. Support: S.2293 – Muslim Brotherhood Terrorist Designation Act of 2025
3. Support: H.R.4397 - Muslim Brotherhood Terrorist Designation Act of 2025
4. Neutral: H.R.3883 - Muslim Brotherhood is a Terrorist Organization Act of 2025
5. Support: H.R.1267 - Water Systems PFAS Liability Protection Act
INTRODUCTION
This item seeks City Council approval of the Beverly Hills City Council Legislative/Lobby Committee’s (“Committee”) recommended positions on five federal legislative bills at their December 18, 2025, meeting.
DISCUSSION
On December 18, 2025, the Committee met to discuss five federal legislative bills. A summary of legislative bills reviewed by the Committee and their recommendations is listed below. The attachment to this report includes memos for each bill provided by the City’s federal lobbyist, detailing highlights of bill provisions, author’s intent, and those in support or opposition.
1. S.2651 – ROAD to Housing Act of 2025 – This bipartisan federal bill takes significant steps to incentivize growth of the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. With Meeting Date: January 21, 2026
Item Number: D-4
To: Honorable Mayor & City Council
From: Mandy Jiang, Senior Management Analyst
Subject: APPROVAL OF THE BEVERLY HILLS CITY COUNCIL LEGISLATIVE / Meeting Date: January 21, 2026
much support from the US Conference of Mayors, this measure invests directly in cities through flexible new grant programs tied to housing supply and infrastructure readiness; supports community-driven zoning and land-use frameworks through HUD guidance, and permanently authorizes funding programs like Community Development Block Grant – Disaster Recovery (CDBG-DR) and enhances other programs such as HOME and Build More Housing Near Transit. One potential point of concern is verbiage under Sec. 206 (B), which ties some jurisdictions’ Community Development Block Grant (CDBG) funding to their housing production, including bonuses for accelerated homebuilding and a 10% funding reduction for jurisdictions lagging behind the median housing growth improvement rate for all eligible recipients in a fiscal year.
Recommendation: Support if amended, due to a provision in the bill that has the potential to reduce grant funding if a jurisdiction doesn’t meet a housing production metric. Committee recommends removing this to preserve local control and would otherwise fully support this Act.
2. S.2293 – Muslim Brotherhood Terrorist Designation Act of 2025 – This federal bill mandates the Secretary of State to designate and catalog the Muslim Brotherhood (MB) branches as terrorist groups. Currently, the U.S. has officially listed individual members, branches (including Hamas), and charities of the Muslim Brotherhood as terrorists, but has not designated the organization as a whole. This measure would designate MB branches under all three U.S. statute and authorities: Congressional designation under the Anti-Terrorism Act of 1987 (ATA), State Department. designation as a Foreign Terrorist Organization (FTO) pursuant to the Immigration and Nationality Act, and Treasury Department designation as a Specially Designated Global Terrorist (SDGT) under Executive Order (EO) 13224. By doing so, this would create an embargo prohibiting Americans from conducting financial transactions on behalf of the group.
Recommendation: Support
3. H.R.4397 - Muslim Brotherhood Terrorist Designation Act of 2025 - This federal bill was introduced by the House of Representatives and is the companion bill of Senate Bill 2293 above.
Recommendation: Support
4. H.R.3883 - Muslim Brotherhood is a Terrorist Organization Act of 2025 – This federal bill simply states “The Secretary of State shall designate the Muslim Brotherhood as a foreign terrorist organization pursuant to section 219 of the Immigration and Nationality Act (8 U.S.C. 1189)”.
Recommendation: Neutral; this bill is barebones and unlikely to progress further.
5. H.R.1267 - Water Systems PFAS Liability Protection Act – This federal bill exempts public water agencies from liability under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, with respect to releases of PFAS (perfluoroalkyl and polyfluoroalkyl) substances. It aims to protect water utilities, who are passive receivers of PFAS, from financial and legal liabilities associated with decades of use of these chemicals in manufacturing and consumer products.
Recommendation: Support
FISCAL IMPACT
The fiscal impact is not known at this time.
Meeting Date: January 21, 2026
Keith Sterling
Deputy City Manager
Approved By
Attachment 1
TO: Mandy Jiang, Senior Management Analyst
City of Beverly Hills
FROM: Jamie Jones
[email protected]
202-543-3744
DATE: November 12, 2025
RE: Update on S.2651 – ROAD to Housing Act of 2025
Senate Banking, Housing and Urban Affairs Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) introduced S.2651, the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, this past July. The bipartisan bill takes significant steps to boost the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. The Banking, Housing and Urban Affairs Committee unanimously approved the bill by a vote of 24 to 0 on July 29. The measure was passed by the full Senate last month as an amendment to S.2296, the National Defense Authorization Act.
According to Representative Mike Flood (R-NE), Chairman of the House Financial Services Subcommittee on Housing and Insurance, the House is likely to take a more “surgical” approach to addressing the housing and homelessness crises than the Senate bill. For example, Congressman Flood, in a speech before the US Chamber of Commerce, mentioned his bill, H.R. 5878, that would make changes to the HOME Investment Partnership Program at the Department of Housing and Urban Development. The legislation would expand income eligibility for the housing assistance, allow funds to be used for infrastructure improvements related to HOME projects and ease some environmental requirements, among other changes. Representative Emanuel Cleaver (D-MO), ranking member of the housing subcommittee, co-sponsored the bill.
Flood contrasted the bill with the Senate’s proposal for remaking the HOME program. The fact that the House is looking to consider its own housing bill ensures that the legislative process will drag well into next year.
SENATE BILL
The comprehensive Senate measure incorporates part of at least 27 previously introduced pieces of legislation, 23 of which were introduced with bipartisan sponsors. The bill, moreover, contains no unfunded mandates or preemptions of local authority; invests directly in cities through flexible new grant programs tied to housing supply and infrastructure readiness; supports evidence-based, community-driven zoning and land-use frameworks through HUD guidance, not top-down mandates; and permanently authorizes CDBG-DR and enhances programs like HOME and Build More Housing Near Transit, which are essential tools for local governments.
The USCM supports the legislation and is urging member mayors to contact their House delegation members urging them to endorse the bill. The USCM, however, has expressed concern regarding language that ties some localities’ Community Development Block Grant (CDBG) funding to their housing production, including bonuses for accelerated homebuilding and small funding reductions for lagging grantees. USCM letter states: “Our concerns with the legislation are focused on any potential adjustments to the distribution of CDBG funding – one of Washington’s best bipartisan success stories, which has been a force in revitalizing low- and moderate-income neighborhoods across the country and serving the people living in them since 1974. This issue will require discussion as we go forward.”
The ROAD to Housing Act will:
• Expand and Preserve Housing Supply:
o Remove regulatory barriers to housing development
o Increase and preserve existing housing
o Promote innovative construction methods, including to expand access to modular and manufactured housing
o Addresses neighborhood blight and supports communities recovering from natural disasters
• Improve Housing Affordability and Access:
o Expand access to homeownership
o Improve housing affordability
o Promote housing opportunities for veterans
o Reduce homelessness
o Reduce appraisal shortages while addressing inaccurate appraisals • Advance Accountability and Fiscal Responsibility:
o Ensure taxpayer dollars are used efficiently
o Promote evidence-based policy solutions
• Improve Oversight and Program Integrity:
o Strengthen oversight of housing regulators
o Streamline program coordination
o Ensure performance, transparency, and accountability across housing programs Below is a summary of the bill’s key provisions:
Title 1 – Improving Financial Literacy
Sec. 101 – Reforms to Housing Counseling and Financial Literacy Programs • Allows the Department of Housing and Urban Development (HUD) to evaluate the performance of housing counseling agencies and counselors, mandate additional training, and revoke certifications.
Title 2 – Building More in America
Sec. 201 – Rental Assistance Demonstration Program
• Lifts the Rental Assistance Demonstration (RAD) program cap and extends protections for tenants in RAD buildings.
Sec. 202 – Increasing Housing in Opportunity Zones
• Allows HUD to prioritize applicants that are based in or primarily serve communities designated as Opportunity Zones for any competitive grants relating to housing development or preservation.
Sec. 203 – Housing Supply Frameworks Act
• Directs HUD to publish guidelines and best practice frameworks for state and local zoning and land-use policies.
Sec. 204 – Whole-Home Repairs Act
• Creates a HUD pilot program to support state and local whole-home repair programs, which provide grants and forgivable loans to eligible homeowners and landlords for home repairs and modifications.
Sec. 205 – Community Investment and Prosperity Act
• Raises the cap on bank public welfare investments, such as affordable housing and community development projects, from 15% to 20%.
Sec. 206 – Build Now Act
• Ties some localities’ Community Development Block Grant (CDBG) funding to their housing production, including bonuses for accelerated homebuilding and small funding reductions for lagging grantees.
Sec. 207 – Better Use of Intergovernmental and Local Development (BUILD) Housing Act • Authorizes HUD to treat certain housing assistance as “special projects” to help simplify compliance with the National Environmental Policy Act (NEPA). • Expands HUD’s authority to delegate certain environmental review responsibilities to states, local governments, and tribes.
Sec. 208 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act* • Streamlines NEPA review for a broad range of housing-related activities—including small-scale construction, rehabilitation, and infill development—by expanding categorical exclusions to reduce delays and lower administrative burdens.
Sec. 209 – Innovation Fund
• Creates a $200 million annual competitive grant program for local governments and tribes that demonstrate measurable increases in housing supply, incentivizing reforms such as streamlined permitting, density bonuses, and zoning changes.
Sec. 210 – Accelerating Home Building Act
• Provides grants to local governments and tribes to select and implement pre-reviewed housing designs (such as accessory dwelling units, duplexes, or townhouses) to streamline affordable housing construction, with 10% of total funding reserved for rural areas and a 5-year window for adoption.
Sec. 211 – Build More Housing Near Transit Act
• Incentivizes applicants for federal transit project funding to adopt pro-housing policies— including by-right zoning and reduced parking minimums.
Sec. 212 – Revitalizing Empty Structures into Desirable Environments (RESIDE) Act • Creates a pilot grant program to help local governments convert vacant commercial or industrial buildings into affordable housing, prioritizing economically distressed areas and Opportunity Zones, with funding from excess HOME Investment Partnerships Program grant allocations.
Sec. 213 – Housing Affordability Act
• Directs HUD to evaluate, and potentially revise, loan limits for Federal Housing Administration (FHA) multifamily mortgage insurance programs to better reflect construction costs and demand for housing, with proposed increases in per-unit loan limits for walk-up and elevator buildings.
Title 3 – Manufactured Housing for America
Sec. 301 – Housing Supply Expansion Act
• Eliminates the permanent chassis requirement for manufactured homes.
Sec. 302 – Modular Housing Production Act
• Directs HUD to conduct a review of FHA construction financing programs to identify barriers for modular housing developers and administrative opportunities to reduce any such barriers.
• Authorizes HUD to fund a study on the utility of a standardized code for modular homes.
Sec. 303 – Property Improvement and Manufactured Housing Loan Modernization Act* • Increases the loan limits of FHA-insured manufactured housing loans, adds the construction of accessory dwelling units as an acceptable use for FHA-insured property improvement loans, and directs HUD to conduct a study on the cost-effectiveness of offsite construction techniques.
Sec. 304 – PRICE Act
• Reauthorizes Preservation and Reinvestment for Community Enhancement (PRICE) grants to fund the repair, preservation, and improvement of existing manufactured homes and manufactured home communities.
Title 4 – Accessing the American Dream
Sec. 401 – Creating Incentives for Small Dollar Loan Originators • Directs the Consumer Financial Protection Bureau (CFPB) to study and report on mortgage loan originator compensation practices and their impact on the availability of small dollar mortgages (loans of $100,000 or less).
• Enables the CFPB to issue regulations ensuring fair compensation for these loans.
Sec. 402 – Small Dollar Mortgage Points and Fees
• Requires the CFPB to evaluate the impact of current points and fees thresholds on small dollar mortgage lending and authorizes the agency to adjust these limits regulatorily to encourage more small dollar mortgage loans.
Sec. 403 – Appraisal Industry Improvement Act
• Reforms appraisal licensing and training, enhances standards for FHA-approved appraisers, adds flexibility for trainee appraisers, and authorizes grants to support appraisal workforce development.
Sec. 404 – Helping More Families Save Act
• Authorizes HUD to implement a multi-year demonstration project, testing and evaluating an opt-out approach to the Family Self-Sufficiency (FSS) program, among other program changes.
Sec. 405 – Choice in Affordable Housing Act
• Aims to reduce delays in HUD inspections by allowing units financed through certain federal housing programs—the Low-Income Housing Tax Credit (LIHTC), the HOME Program, and the Department of Agriculture (USDA) Rural Housing Service—to automatically meet Housing Choice Voucher (HCV) inspection requirements if they have passed an inspection within the past year.
• Allows new landlords to request advance inspections, helping to expand housing options for voucher holders and incentivizing greater landlord participation in the HCV program.
Title 5 – Program Reform
Sec. 501 – Reforming Disaster Recovery Act
• Permanently authorizes and reforms HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR) program to better address the needs of low- to moderateincome households following major disasters.
Sec. 502 – HOME Investment Partnerships Reauthorization and Improvement Act • Reauthorizes the HOME Investment Partnerships Program. • Makes administrative revisions and reforms to support housing production.
Sec. 503 – Rural Housing Service Reform Act*
• Makes changes to the USDA’s Rural Housing Service programs, including decoupling rental assistance from maturing mortgages, permanently establishing the Housing Preservation and Revitalization program for multifamily rental housing, and providing funding for technology improvements and increased staff capacity.
Sec. 504 – New Moving to Work Cohort
• Authorizes a new Moving to Work program cohort, Economic Opportunity and Pathways to Independence, with specific eligibility and reporting requirements.
Sec. 505 – Reducing Homelessness Through Program Reform Act • Proposes reforms to federal homelessness programs to increase funding consistency, streamline lease-up processes, improve coordination among agencies, and strengthen data collection and coordination.
Sec. 506 – Incentivizing Local Solutions to Homelessness • Allows Emergency Solutions Grant funding recipients to request a waiver of the statutory 60% spending cap on emergency shelter beds and street outreach.
Title 6 – Veterans and Housing
Sec. 601 – VA Home Loan Awareness Act*
• Adds a disclosure to the Uniform Residential Loan Application informing applicants they may be eligible for a Veterans Affairs (VA) Home Loan to increase awareness of and access to the program.
Sec. 602 – Veterans Affairs Loan Informed Disclosure (VALID) Act • Enhances FHA mortgage disclosures to help borrowers compare VA loan options alongside conventional and FHA loans.
Sec. 603 – Housing Unhoused Disabled Veterans Act
• Excludes disability benefits received by veterans for the purpose of determining income eligibility for the HUD-VASH program.
Title 7 – Oversight and Accountability
Sec. 701 – Requiring Annual Testimony and Oversight from Housing Regulators • Requires annual testimony from the heads of HUD, FHA, Ginnie Mae, USDA, Federal Housing Finance Agency (FHFA), and the VA relating to the status of federal housing programs and government-backed mortgages, to enhance oversight and accountability.
Sec. 702 – FHA Reporting Requirements on Safety and Soundness • Requires that HUD provide monthly reports to Congress relating to the Mutual Mortgage Insurance Fund’s statutorily required 2% capital ratio and notify Congress if the fund falls below the mandated ratio.
Sec. 703 – United States Interagency Council on Homelessness (USICH) Oversight • Requires that the USICH include a progress update on its efforts to reduce homelessness as part of its annual planning process and that it provides annual testimony to Congress.
Sec. 704 – NeighborWorks Accountability Act
• Establishes an Office of the Inspector General within NeighborWorks America.
Sec. 705 – Appraisal Modernization Act
• Requires mortgage lenders to establish standardized policies to ensure consistent treatment of consumers who request a second appraisal.
• Requires the Government Accountability Office to issue a report assessing the feasibility of creating a public appraisal database consolidating data collected by the FHFA, HUD, USDA, and the VA.
Title 8 – Coordination, Studies, & Reporting
Sec. 801 – HUD-USDA-VA Interagency Coordination Act
• Directs HUD, USDA, and the VA to share information and identify opportunities for collaboration to streamline the implementation of their housing programs.
Sec. 802 – Streamlining Rural Housing Act
• Directs HUD and USDA to conduct joint environmental reviews for housing projects receiving funding from both agencies.
Sec. 803 – Improving Self-Sufficiency of Families in HUD-Subsidized Housing • Directs HUD to study the benefits and challenges of work requirements on PHAs participating in the Moving to Work demonstration and assisted households. • S. 1461, the Safe SHORES Act, which would reauthorize HUD’s Recovery Housing Program, increase its annual funding, and allow grantees to cover more costs associated with providing housing.
• S. 885, the Strategy and Investment in Rural Housing Preservation Act, which would strengthen USDA’s Section 515 loan program by allowing for the restructuring of existing loans, extending incentives for property owners to remain in the program, and providing resources for necessary repairs and restorations while ensuring residents continue to receive rental assistance.
• S. 138, the VA Home Loan Awareness Act, which would require mortgage applications to inform veterans and surviving spouses that they may be eligible for a VA home loan, aiming to boost awareness and use of this underutilized benefit. • S. 127, the Whole-Home Repairs Act, which would create a national five-year pilot program within HUD to allow low- and moderate-income homeowners and small landlords to apply for grants and loans to make needed repairs to homes.
SUPPORT
The ROAD to Housing Act has support from a myriad of housing stakeholders including:
US Conference of Mayors
National League of Cities
National Association of Affordable Housing Lenders
National Housing Conference
National Alliance to End Homelessness
Coalition for Affordable Homeownership
Veterans Association of Real Estate Professionals
AARP
National Association of Realtors
Real Estate Roundtable
Mortgage Bankers Association
National Association of Home Builders
National Apartment Association
National Multifamily Housing Council
Bipartisan Policy Center
Appraisal Institute
OPPOSITION
There does not appear to be any opposition from housing stakeholders or other private sector entities, for that matter.
TO: Mandy Jiang, Senior Management Analyst
City of Beverly Hills
FROM: Jamie Jones
[email protected]
202-543-3744
DATE: November 12, 2025
RE: S.2293 and H.R.4397 – The Muslim Brotherhood Terrorist Designation Act Senator Ted Cruz, Chair of the Senate Foreign Relations Subcommittee on Africa and Global Health Policy, introduced S.2293, the Muslim Brotherhood Terrorist Designation Act, on July 15, 2025. The bill directs the President and Secretary of State to use their statutory authority to sanction the Muslim Brotherhood as a terrorist organization. The U.S. has officially listed individual members, branches (including Hamas), and charities of the Muslim Brotherhood as terrorists, but has not designated the organization as a whole. S.2293 mandates the Secretary of State to catalog the MB branches designated as terrorist groups and designate additional ones that meet relevant criteria, and mandates the designation of the global MB for its support of those terrorist groups.
There are broadly three ‘ways’ of designating terrorist groups under U.S. statute and authorities:
Congressional designation under the Anti-Terrorism Act of 1987 (ATA), State Dept. designation as a Foreign Terrorist Organization (FTO) pursuant to the Immigration and Nationality Act, and Treasury Dept. designation as a Specially Designated Global Terrorist (SDGT) under Executive Order (EO) 13224. This bill does all three.
• Section 2: Designation of the Muslim Brotherhood under the Anti-Terrorism Act. The designation creates a primary embargo, in which Americans are banned from conducting transactions on behalf of the group.
• Section 3: Designation of the global Muslim Brotherhood and any Muslim Brotherhood branches found to be conducting terrorism pursuant to the Foreign Terrorist Organization and the Specially Designated Global Terrorist authorities, implemented through a periodic report.
According to the sponsors of the bill, the Muslim Brotherhood is a transnational Islamist organization and functions as a global organization, providing material support to Muslim Brotherhood branches in countries and territories by providing political support, financial resources, training, services, expert advice, and communications assistance. The MB has sought to destabilize and undermine United States allies and partners throughout the Middle East, including in Bahrain, Egypt, Jordan, Saudi Arabia, and the United Arab Emirates and has been outlawed as a terrorist group by the governments of those countries.
S.2293 has been referred to the Senate Committee on Foreign Relations and has been cosponsored by Senators Tom Cotton (R-Ark.), John Boozman (R-Ark.), Rick Scott (R-Fla.), Ashley Moody (R-Fla.), and Dave McCormick (R-Pa.).Companion legislation, H.R. 4397, was introduced in the House by Representatives Mario Díaz-Balart (R-FL) and Jared Moskowitz (D-FL), Co-Chairs of the Friends of Egypt Caucus. The bill has 19 cosponsors and has been referred to the House Foreign Affairs Committee and the Judiciary Committee.
SUPPORT
The bill is supported by the Foundation for Defense of Democracies (FDD) Action, Christians United for Israel Action Fund, the American Israel Public Affairs Committee (AIPAC), and the Republican Jewish Coalition.
TO: Mandy Jiang, Senior Management Analyst
City of Beverly Hills
FROM: Jamie Jones
[email protected]
202-543-3744
DATE: November 12, 2025
RE: H.R. 3883 – The Muslim Brotherhood is a Terrorist Organization Act of 2025 Representative Nancy Mace (R-SC) introduced H.R. 3883, the Muslim Brotherhood is a Terrorist Organization Act of 2025, on June 10. The bill has been referred to the House Judiciary Committee.
The thread bare bill contains two sections: Section 1 covers the bill title; and Section 2 directs the Secretary of State to formally designate the Muslim Brotherhood as a foreign terrorist organization pursuant to Section 219 of the Immigration and Nationality Act (8 USC 1189). The bill contains no explanatory statement. According to Congresswoman Mace, the Muslim Brotherhood doesn’t just support terrorism, it inspires it. Mace, in introducing the bill, said “President Trump was right when he said the Muslim Brotherhood is a threat to global security, and it’s long past time we call them what they are: terrorists.”
According to Representative Mace, H.R. 3883 activates critical national security tools including financial sanctions, asset freezes, travel bans, and targeted law enforcement, to dismantle the group’s operations in the U.S. and abroad. Mace states that the Muslim Brotherhood has historically been linked to radical Islamist movements, with affiliates fueling terrorism and undermining key U.S. allies.
It should be noted that Representative Nancy Mace is campaigning for Governor of South Carolina and will not be returning as a member of Congress following the mid-term elections.
Representative Mace’s bill is unlikely to be considered by the Judiciary Committee in this Congress.
TO: Mandy Jiang, Senior Management Analyst
City of Beverly Hills
FROM: Jamie Jones
[email protected]
202-543-3744
DATE: November 12, 2025
RE: H.R. 1267 – Water System PFAS Liability Protection Act Representative Maria Gluesenkamp Perez (D-WA) and Representative Cleste Maloy (R-UT) introduced H.R. 1267, the Water System PFAS Liability Protection Act, on February 12. The bill exempts public water agencies from liability under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 with respect to releases of PFAS (perfluoroalkyl and polyfluoroalkyl) substances. The bill is aimed at protecting water utilities, who are passive receivers of PFAS, from financial and legal liabilities associated with decades of use of these chemicals in manufacturing and consumer products.
Last year, the EPA formally designate two of the most common PFAS chemicals – Perfluorooctanoic acid (PFOA) and Perfluorooctanesulfonic acid (PFOS) – as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), federal statute dealing with superfund cleanup. This designation could put drinking water utilities at risk of incurring cleanup liability when they take necessary steps to remove and dispose of PFAS deposited into water supplies by upstream polluting industries. In addition, wastewater and stormwater utilities could also be put at risk as they receive PFAS chemicals through the raw influent that arrives at the treatment plant or through municipal stormwater runoff.
While EPA has announced an “enforcement discretion” policy that intends to focus on polluters that are responsible for the contamination and have profited from PFAS, such a policy is viewed by water industry stakeholders as insufficient to ensure that drinking water and clean water ratepayers will be permanently protected from CERCLA legal defense costs and cleanup liability for PFAS. Water agencies highlight that not only is the enforcement discretion policy nonbinding and subject to revision or reversal at any time, but potentially responsible parties have already publicly indicated that they will use every legal means available to require public agencies to pay for PFAS cleanups. CERCLA provides an opportunity for manufacturers and users of PFAS to defray their own cost burden, brought on by their own actions, by forcing communities around the country into litigation. These communities are often those that have been the most impacted by PFAS pollution and are therefore the least able to afford such costs. While EPA’s enforcement discretion policy is well intentioned, the Agency simply cannot provide the protection that water utilities and their ratepayers need.
BACKGROUND
Without congressional action, water and wastewater utilities and their customers will be at risk of incurring the significant cost of cleaning up PFAS contaminated sites. Drinking water and wastewater utilities face this risk because they passively receive these per- and polyfluoroalkyl substances (PFAS) from upstream polluting industries and PFAS-laden products. After removing PFAS from water supplies, water utilities possess residuals that contain those PFAS, which must be disposed of in accordance with applicable law. However, should the disposal site ever become subject to a Superfund cleanup, the water system could be treated as a PFAS polluter – and be responsible for a portion or even all the cleanup costs – forcing local ratepayers to cover the bill after they already paid to remove the contaminants from their source water. Wastewater and stormwater utilities would face similar liability through no fault of their own because they either receive PFAS chemicals through the raw influent that arrives at the treatment plant or through the municipal stormwater runoff that they manage. These flows can come from domestic, industrial, and commercial sources and may contain PFAS constituents ranging from trace to higher concentrations, depending on the nature of the dischargers to the sewer or stormwater system.
These flows are not generated by the utility; rather, the utility provides the critical human health and environmental service of managing and treating this influent to meet all the requirements of the Clean Water Act. Congressional action is necessary to distinguish these utilities from the entities responsible for introducing PFAS into the environment.
SUPPORT
American Water Works Association, Association of Metropolitan Water Agencies, National Association of Clean Water Agencies, National Association of Water Companies, National Rural Water Association and Water Environment Federation