Chemours Agrees to $450 Million PFAS Settlement Across Three States

Chemours Agrees to $450 Million PFAS Settlement Across Three States

By
Key Takeaways
  • Landmark Federal Settlement: Chemours agreed to a settlement exceeding $450 million, the first comprehensive federal enforcement resolution with a major PFAS manufacturer.
  • Long-Term Environmental Commitments: The agreement requires 15 years of pollution controls, drinking water programs, leak detection measures, and emissions reductions across four facilities.
  • Alleged Decade-Long Violations: Federal regulators allege Chemours unlawfully discharged PFAS into the Ohio, Cape Fear, and Delaware rivers and failed to meet chemical safety requirements for more than ten years.
  • DuPont Liability Unresolved: The Justice Department emphasized that the settlement addresses Chemours' alleged liability only and does not resolve any potential liability of former owner DuPont.
  • Manufacturing Continues Under Stricter Controls: Chemours will continue producing PFAS for commercial and military applications while operating under extensive court-enforced environmental obligations.
Deep Dive

For more than a decade, federal regulators say, PFAS left Chemours facilities in West Virginia, North Carolina, and New Jersey and entered three of the country's major rivers. On Wednesday, that alleged history of contamination produced one of the most consequential enforcement actions yet against a manufacturer of the so-called "forever chemicals."

The U.S. Department of Justice, the Environmental Protection Agency, and the West Virginia Department of Environmental Protection announced a settlement requiring Chemours to spend more than $450 million on civil penalties, pollution controls, drinking water programs, and long-term environmental improvements. The agreement is the first comprehensive federal settlement with a major PFAS manufacturer, resolving alleged violations under the Clean Water Act, the Resource Conservation and Recovery Act, the Toxic Substances Control Act, and the West Virginia Water Pollution Control Act.

The settlement is notable as much for what it requires as for what it permits. Chemours will continue producing PFAS used in critical commercial and military applications, but it will do so under years of court-enforceable obligations designed to reduce releases into surrounding communities.

At the center of the agreement is a $22.5 million civil penalty. Beyond that, Chemours will undertake a multi-year, $90 million program to mitigate PFAS discharges, invest an estimated $60 million in pollution controls at its West Virginia facility, and spend an estimated $280 million providing clean drinking water to communities near facilities in West Virginia and New Jersey for more than a decade. The company must also evaluate and implement additional controls to reduce releases of PFAS and other toxic chemicals from its North Carolina facility. Together, those commitments are expected to exceed $450 million.

Alleged Violations Spanned More Than a Decade

According to the government's complaint, Chemours facilities in West Virginia, North Carolina, and New Jersey discharged PFAS into the Ohio, Cape Fear, and Delaware rivers in violation of environmental permits. Regulators also allege the company failed to comply with requirements of the Toxic Substances Control Act at all four covered facilities.

Those alleged violations continued for more than ten years, exposing nearby communities to unlawful PFAS releases, according to the complaint.

The Justice Department also drew an important distinction. Although the facilities were owned by DuPont for decades before becoming part of Chemours, the settlement resolves only Chemours' alleged liability. Any potential liability for DuPont remains outstanding.

PFAS, or per- and polyfluoroalkyl substances, comprise a large family of synthetic chemicals prized for resisting heat, water, grease, and stains. They are used in everything from industrial manufacturing to specialized military applications. Their persistence in the environment has also made them the focus of increasing regulatory scrutiny, with scientific studies linking exposure to some PFAS compounds to harmful effects in people and animals.

Fifteen Years of Required Controls

The consent decree reaches well beyond financial penalties. Chemours must complete 14 projects to reduce PFAS in wastewater, stormwater, and groundwater at its West Virginia facility, including treatment systems using granular activated carbon. The company must also test drinking water for communities surrounding its facilities in West Virginia and New Jersey and provide treated or alternative water where required.

Across all covered facilities, Chemours will be required to reduce emissions of GenX, a PFAS processing aid used in fluoropolymer manufacturing, by at least 99%. Its North Carolina facility must also implement additional controls for PFAS and other toxic chemicals based on recommendations from an independent engineering firm.

Those obligations will remain in place for 15 years. The company must also implement enhanced leak detection and repair programs aimed at reducing PFAS emissions and certify compliance with hazardous waste storage requirements.

A New Benchmark for PFAS Enforcement

Federal officials described the agreement as a turning point in PFAS enforcement. Principal Deputy Assistant Attorney General Adam Gustafson said the settlement would allow Chemours to continue manufacturing materials considered important for commercial and military uses while requiring the company to better control PFAS releases and protect surrounding communities.

Jeffrey A. Hall, Assistant Administrator for EPA's Office of Enforcement and Compliance Assurance, called it the first comprehensive federal settlement against a major PFAS manufacturer, saying the agreement demonstrates how existing environmental laws can be used to reduce contamination across water, land, and air while addressing past violations.

West Virginia Governor Patrick Morrisey characterized the settlement as an important first step but said it addresses only part of the state's broader concerns surrounding the Washington Works facility. He added that negotiations toward a more comprehensive long-term resolution remain ongoing.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.

Oops! Something went wrong