Arizona Corporation Commission calls on Congress to exempt utilities from EPA hazardous waste costs

Arizona Corporation Commission calls on Congress to exempt utilities from EPA hazardous waste costs

The Arizona Corporation Commission (ACC) is taking action to protect consumers from potential utility rate increases due to the Environmental Protection Agency’s (EPA) recent hazardous substance classifications.

The Public Utilities Commission has sent a letter to Congress and Arizona’s congressional delegation advocating for federal legislation that would exempt water and wastewater utilities from liability for disposing of hazardous substances under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as Superfund.

Republican Commissioner Nick Myers, who proposed the letter in July, said utilities are recipients of these substances, not their manufacturers.

“The classification in its current form potentially exposes these utilities and customers to CERCLA violations and lawsuits, as well as higher disposal fees,” Myers said.

In a unanimous and bipartisan decision, the ACC agreed to send the letter earlier this month.

Myers added that he wanted to pass the costs on to the parties that originally caused the pollution.

Earlier this year, the EPA classified PFOA and PFOS – two widely used per- and polyfluoroalkyl substances known as PFAS – under CERCLA.

While CERCLA aims to hold polluters accountable, Myers argued that the measure left water and wastewater utilities vulnerable to significant cleanup costs and damage to natural resources.

“We are doing everything we can to reduce costs,” Myers said. “We expect costs could quadruple for some utilities in Arizona.”

Myers noted that utilities in rural areas may be hit hardest by rising costs.

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