Senate committee moves language to put PFAS settlement money into drinking water fund statute

The Senate Finance Committee voted to include statutory language describing the purpose and operation of a fund to receive and disburse settlement proceeds from PFAS contamination litigation, aiming to reimburse communities that already spent money remediating drinking-water systems.

A senator explained the change as putting the fund’s purpose into statute so that when settlement money arrives "they can get to work" without needing a separate bill. The amendment directs the Department of Environmental Services (DES) to determine eligible recipients and route final approvals for disbursement through the Drinking Water and Groundwater Trust Fund (or the named fund in statute).

Committee members noted the settlement is a combination of multiple actions (3M, DuPont, Tyco) and that distributions have been delayed because additional defendants are still signing onto the settlement agreements. A senator clarified this was not solely a 3M settlement and that the timing of distributions depends on remaining defendants joining the settlement.

Senator Wallace and others said the statutory clarification is sensible: it will define eligibility and allow DES and the drinking-water fund to adopt a reimbursement formula when funds become available. Lawmakers said they did not yet know the total distribution timeline but agreed the statute should be in place so agencies can act when settlements are finalized.

The committee voted to approve the amendment and move the item forward in the HB2 package; senators requested the current eligibility sheets be included with materials so members can see the list of potentially eligible systems.