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HB 2954

Relating to substance abuse prevention; declaring an emergency.

2025 Regular Session Introduced by Ed Diehl and 4 co-sponsors

Creates a PFAS Fund funded by a new manufacturer tax to grant/reimburse public entities for PFAS testing, cleanup, and related costs.

In committee upon adjournment.
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Bill Summary · HB 2954

HB 2954 — “PFAS TRUST ACT” (Taxpayer Relief from Ubiquitous Synthetic Toxics / TRUST Act)

Status & Sponsorship
- Primary sponsor: Rep. Abdelnasser Rashid.
- Introduced: Feb 2025. Current status (as provided): Rule 19(a) / Re‑referred to Rules Committee.
- Companion: SB 1746.

Purpose
- To create a permanent funding mechanism to address PFAS contamination by (1) imposing a tax on PFAS manufacturers and (2) establishing a dedicated PFAS Fund to provide grants and reimbursements to eligible public entities for PFAS‑related costs. The Act aims to protect public health and natural resources while shifting remediation costs toward manufacturers.

Key provisions
1. PFAS Fund (special state fund)
- Creates the PFAS Fund in the State treasury.
- Sources: settlements from Attorney General enforcement actions, tax revenues collected under the Act, and other credited moneys.
- Interest and investment income remain in the Fund; balances carry forward and do not revert to General Revenue.
- Fund may be divided into subaccounts (e.g., separate accounts for grant vs. reimbursement programs).
- Authorized uses include grants/reimbursements, Agency and Department administrative costs, and tax administration.

  1. Administration

    • Illinois Environmental Protection Agency (the “Agency”) is the lead administrator and must adopt implementing rules.
    • Agency sets eligibility, criteria, and payment rules for both the PFAS Grant Program and PFAS Reimbursement Program.
    • Payments and agreements are contingent on availability of Fund moneys.
    • Final decisions under the Reimbursement Program are reviewable under procedures akin to permit‑denial appeals in the Environmental Protection Act; other final administrative decisions subject to Administrative Review Law.

  2. PFAS Grant Program & Reimbursement Program

    • Establishes a Grant Program (for research, remediation, treatment projects, etc.) and a Reimbursement Program to cover PFAS‑related costs.
    • Eligible entities primarily include publicly owned utilities, publicly owned treatment works (POTWs), and publicly owned community water supplies; Agency may define/adjust eligibility.
    • Agency may create different eligibility and payment rules depending on project type.

  3. PFAS tax on manufacturers

    • Creates a tax on persons/entities that manufacture PFAS chemicals or products containing PFAS (with enumerated exceptions such as certain publicly owned utilities/POTWs).
    • The Agency must propose to the Pollution Control Board which PFAS chemicals will be taxed and the applicable rates; the Board must adopt those rules within one year of the Agency proposal.
    • Manufacturers must file returns with the Department of Revenue; the Department administers the tax and adopts rules. Tax revenues are deposited into the PFAS Fund.

Definitions & scope
- The bill defines “PFAS chemical,” “PFAS manufacturer,” “PFAS‑related costs,” “eligible entity,” POTWs, etc., and adopts EPA‑aligned definitions for PFAS inclusion.

Potential impacts
- Public utilities/water systems: Creates a new funding source to finance PFAS testing, treatment, remediation, monitoring, and related capital projects — potentially reducing pressure on local ratepayers.
- PFAS manufacturers and product assemblers: New tax liability tied to specified PFAS chemicals; may increase costs, prompt reformulation or manufacturing changes.
- State agencies: Adds administrative responsibilities (Agency rulemaking, Department of Revenue tax administration, Pollution Control Board rule adoption).
- Legal/administrative: Establishes review pathways for program decisions; settlements and tax receipts provide multiple revenue streams but program details (eligibility, award amounts, specific taxed chemicals and rates) depend on forthcoming rulemaking.

Key procedural/timing notes
- Agency required to propose PFAS list and tax rates to Pollution Control Board; Board required to adopt rules no later than one year after the Agency’s proposal.
- Payments/grants contingent on Fund availability.
- The Act (as drafted in the introduced text) states it is effective immediately; many substantive details are left to Agency/Board rulemaking.

Uncertainties / items to watch
- Which specific PFAS compounds will be taxed and the tax rates (set via Agency/Board rulemaking).
- Exact eligibility criteria, reimbursement caps, and grant award methodologies to be set by the Agency.
- Interplay with other state or federal PFAS funding and regulatory programs.

Compiled from official sources — confirm details with the bill’s official record.

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