Flexibility with PFAS Compliance
On May 14, the Environmental Protection Agency announced the agency’s intent to provide greater flexibility, including extended deadlines, for water systems to comply with an EPA regulation released in April 2024 that established legally enforceable levels of PFAS chemicals in drinking water. The regulation requires public water systems to complete initial monitoring for PFAS by 2027 and, beginning that year, inform the public of PFAS levels in their drinking water. It also mandates the implementation of solutions to reduce PFAS if exceeding the maximum levels by 2029.
No official changes to the regulation have been made yet. EPA plans to issue a proposed rule this fall to extend the compliance date to 2031. They also plan to launch PFAS OUT, an outreach initiative to connect with and provide technical assistance to every public water system in need of capital improvements to address PFAS.
This recent announcement could favor cities, especially small and rural communities, working to comply with the drinking water regulation without raising rates for taxpayers. EPA Administrator Lee Zeldin has long recognized that public water systems are “passive receivers” of PFAS. In the 118th Congress, there was bipartisan legislation to shield municipalities from being held liable for PFAS in their drinking water.
Transportation Dollars Go Out the Door
On May 14, the U.S. Department of Transportation announced the approval of 76 grant awards, in turn obligating funds for these transportation projects. USDOT has removed DEI, environmental and social justice requirements from these awards. Of the 11 awards made in Georgia, nine go direct to cities, including $14.7 million through the Natural Gas Distribution Infrastructure Safety and Modernization Grant Program for the cities of Eatonton, Hartwell, Toccoa, Winder, Perry, Thomasville, Monroe and Tifton to rehab and modernize aging natural gas pipes. This program was authorized by the 2021 Infrastructure Investment and Jobs Act.
Movement on Budget Reconciliation
Congress is enacting legislation to advance top Administration priorities around defense, energy and tax cuts in one budget package. While most House committees have already approved their reconciliation proposals, the Energy and Commerce, Ways and Means, and Agriculture committees have been the last to approve theirs. The most contentious issues have been Medicaid and food stamps (i.e. SNAP benefits), where lawmakers are seeking cost savings to help offset proposed tax cuts. See 2025 Reconciliation Tracker.
On Monday, the House Ways and Means marked up and approved “The One, Big, Beautiful Bill” containing a series of tax provisions that will undergird the budget package. Among the provisions is the phase-out and elimination of tax credits from the Inflation Reduction Act to finance clean energy projects across the country. There is no mention of removing the tax exemption on municipal bonds; for now, that threat has been held down. With a mark-up of a full House reconciliation bill slated for Friday, May 16, Speaker Johnson aims to pass their version to send to the Senate before Memorial Day.