May 14, 2025 | JacobiJournal.com – PFAS Settlement Agreement: In a pivotal legal and environmental development, New Jersey has secured a $450 million settlement from 3M Company, marking the state’s largest recovery to date involving PFAS contamination. The agreement resolves 3M’s liability for polluting New Jersey’s water and natural resources with per- and polyfluoroalkyl substances, commonly known as “forever chemicals.”
Landmark Deal Averts Trial
The settlement, announced by Attorney General Matthew J. Platkin and DEP Commissioner Shawn M. LaTourette, comes just days before a high-stakes trial scheduled for May 19, 2025, in federal court. The trial would have been the first in the nation where a state pursued PFAS contamination claims against manufacturers.
This deal ends litigation involving:
- 3M’s Chambers Works site (Pennsville/Carneys Point)
- Parlin site (Sayreville)
- A statewide PFAS directive issued in 2019
- PFAS claims related to aqueous film-forming foam (AFFF)
Payment Timeline and Financial Breakdown
PFAS Settlement Agreement: 3M will pay between $275 million and $325 million between 2026 and 2034, followed by $125 million from 2035 to 2050, subject to certain credits. Key provisions include:
- $43.45 million in 2026 for natural resource damages at the Chambers Works site
- $16.55 million for PFAS abatement and drinking water treatment
- $40 million for fees, costs, and punitive damages
- Remaining funds allocated toward statewide PFAS cleanup and resource restoration
The agreement is subject to court approval and public comment.
3M Avoids Trial, But Not Accountability
“This is one of the first statewide PFAS settlements 3M has agreed to nationwide,” said AG Platkin. “For decades, they knew the dangers but continued contaminating our water. That ends now.”
Notably, the settlement does not shield 3M from private lawsuits, and the company must continue cleanup efforts at its former facilities in New Jersey.
3M, headquartered in Minnesota, was once a major PFAS producer. The company has announced plans to exit PFAS production by the end of 2025.
Remaining Defendants Head to Trial
While 3M exits the case, other major chemical firms remain. Defendants in the upcoming May 2025 trial include:
- DuPont (now EIDP, Inc.)
- Chemours Co. and Chemours Co. FC, LLC
- Corteva Inc.
- DuPont de Nemours, Inc.
These companies are accused of contributing to widespread PFAS contamination through their production and distribution of AFFF and other PFAS-laden products.
Environmental Insurance Fallout: PFAS and Risk Exclusions
As PFAS litigation and regulation escalate, insurers are growing cautious. Underwriters are increasingly:
- Adding PFAS exclusions to general liability policies
- Refusing to insure high-risk industries
- Relying on EPA regulations and ISO endorsements to shape risk models
The EPA has set strict limits on PFAS levels in drinking water, while ISO has introduced endorsements that broadly exclude PFAS-related claims. These moves signal a broader tightening of coverage in environmental risk markets.
Larger Context: A National Reckoning Over PFAS
New Jersey is also set to receive $300 to $500 million from 3M’s $10+ billion national water system settlement announced in 2023. Combined with other settlements—including Solvay’s $175 million agreement in 2023—the state has now secured approximately $840 million for PFAS-related damages.
Funds will be used to remediate contaminated water supplies, restore natural resources, and protect public health statewide.
For authoritative guidance on PFAS and related regulations, direct your audience to the EPA’s PFAS page.
FAQs: PFAS Settlement Agreement: Legal, Environmental, and Insurance Implications
What Does the PFAS Settlement Agreement Mean for New Jersey?
The PFAS settlement agreement between New Jersey and 3M ensures the state receives $450 million for contamination cleanup and water restoration. This landmark deal also helps fund natural resource protection and infrastructure upgrades. Learn more from the EPA’s official PFAS guidelines to understand how these settlements impact communities.
How Will the PFAS Settlement Agreement Affect Future Lawsuits?
Although the PFAS settlement agreement ends New Jersey’s case against 3M, it doesn’t shield the company from private litigation. Residents and other entities may still pursue claims. The deal also increases pressure on remaining defendants, like DuPont and Chemours, to settle or face trial.
Why Are PFAS Exclusions Appearing in Insurance Policies?
The rise in PFAS settlement agreements has led insurers to limit liability exposure. Carriers are now adding PFAS exclusions to general liability and environmental policies. These clauses reflect concerns about long-term cleanup costs, stricter EPA limits, and rising litigation.
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