Welcome to the Votes and Verdicts podcasts hosted by Bloomberg Intelligence, the investment research arm of Bloomberg LP. In this podcast series, we talk about the intersection of business policy and law. My name is Holly from I'm an analyst with Bloomberg Intelligence covering consumer and industrials litigation. Today's podcast we'll focus on regulatory and other issues related to p fast chemicals
or what are also called forever chemicals. I'm delighted to be joined today by Scott Wilson, President and CEO of regenafis, a global leader in environmental technology. Scott has devoted a significant amount of time to p fast for mediation. So Scott, thank you for joining us. Can you tell us a little bit about your background and what ReGenesis does.
Yeah, well, thanks thanks for having me, Hollie. I appreciate it. Yeah. Just by way of background, I've been in the environmental remediation industry since really the birth of the industry itself back in the eighties. I have an undergraduate degree in biology and a master's degree in applied microbiology as it relates to chemical as it relates to patrolling engineering in geochemistry type of things. We were injecting bacteria into oil reservoirs and trying to clean up certain fractions of oil
with bacteria back in the day. And I then moved into the environmental industry and was with one of the first groundwater treatment firms, in fact, the first public company treating groundwater that was groundwater technology back in the day. And then then I went back to school and got an NBA from Kellogg and then have been with ReGenesis for now twenty five years or so. So that's a bit of my background.
And what does re Genesis do.
Yeah, so we are a company that's dead ded catered to developing sort of the leading edge environmental technologies to restore groundwater and soil that's been contaminated. Uh. And so what we do is we develop chemical and biological type technologies that are used by engineering firms all around the
world to restore polluted land and contaminate the land. So we have we have a pretty broad understanding of the global problems that are that are confronting us with the use of different chemicals in our everyday lives that get into the media that we breathe and that we that we you know, eat and drink, and that sort of thing. So, yeah, so that's what we do, got it?
And I understand that a significant amount of your intention has been devoted to p FAST. For those who don't know, can you explain what p fats are and why they are a contenant of concern?
Yeah, So p FAT stands for poly or perfluorinated alcohol substances, And really what that means is that it's a nomenclature for a broad range of chemicals that are all related. Uh and and they're chains of carbon atoms ranging from a couple carbons long to eight or nine carbons long. And these these molecules have one if you consider a chain of carbon on one end, there's a what's known as a water loving group or a hydrophilic group that
tends to pull the molecule into water. The other end, I should say that the rest of the chain has fluorine atoms all over it, and and that that that end of the molecule really doesn't like water at all, so it tends to stay more on the surface of of of materials and or into into oil or for fats. So, so what you have is that these molecules, there's' be like five thousand different variations of these. But but they have really unique characteristics, much like soaps, if you want
to look at it that way. They will tend to move in water somewhat depending on the length of the molecule. The more the more long, the longer the chain of carbons, the more it does not want to be in the water. But but what happens is that is that these molecules will tend to aggregate the surface of water and air and they make bubbles. Uh And and as a result, they've been used in products such as aqueous film forming foams,
which are firefighting foams. So you see, uh, you know, on on airports and so forth, you see these foam that they spray down on the on the runway. That's often what's known as a triple F or firefighting foam that's made with p fast molecules. And and it turns out that that the way, the way this whole thing started was when when these were invented, they realized that it changed the surface of materials that were sprayed with
these compounds. For instance, you could you could spray, you know, put it on a frying pan and it would make it nonstick. You could put it into clothes and and and water wouldn't penetrate it, but but air could breathe through it. So we these molecules have found there their their way into all sorts of products in our daily lives. The non stick little cupcake holders often had pea fastened, and the little the little paper paper doily things put
around cupcakes, for instance. So I mean there is in all sorts of materials, but probably the most insidious area that we see it is in the firefighting foams. And the reason for that is the firefighting foams were formulated with the longer chain pa fasts, the eight or the eight carbon long type molecules, and those tend to not want to be in well. They tend to want to
accumulate in oil and in fat molecules. So if you drink those like let's say that some of that firefighting foam gets into groundwater and then it gets into well and you recover that for drinking. Even a very small amount of that going into your body over time will be detrimental simply because it's building up in your body.
It's what's known as bioaccumulation. The long chain, the long carbon chain surrounded with fluorine tends to accumulate in the fat cells of the fat and the cells in your body, and it doesn't go out with your urine, So your body accumulates it over time, and when we get larger, when we get these higher concentrations, as it builds up,
it starts to have toxic and carcinogenic effects. So that's sort of a little bit of background on the types of molecules, where they're used, and the impact to human health and the environment. What happens the humans also happens to all sorts of life in streams and surface water bodies, et cetera.
You got it.
And so what types of p fast impacted sites exist out there?
Good question. So let's if you if you look at at at sites that are impacted with p fasts, probably the most clear and present danger is the drinking water sites. Right, So they they that's on one end of the problem. That's where it's being recovered and and we're you know, we're put potentially drinking it. So there's water drinking water sites. But if you look at if you look at where that p fass came from, it's impacting that drinking water site.
It came from upgradients someplace, and that would be let's say an airport or a military base, an industrial facility, maybe a landfill. And what happens is, let's let's for an example, let's look at an airport, the fire training area where they were spraying these foams regularly to train. That's filled with some peafast and the soil there well.
Then rain comes and drives it down into the subsurface soil down to a point where it impacts the groundwater table, which is a point in the subsurface where the soil is filled with water. It's saturated. Once it's down there, then it tends to move off site and down down gradient if you want to look at that weight. So those are what I call the source sites. Those source
sites are the sites that need remediation. Certainly on the very downgradient where we're recovering it for drinking water, we'll have to treat that for drinking but also the sites that are causing the problem are the source sites. And to answer your question, Holly, those include airportsli terry bases,
and industrial facilities. And those industrial facilities could range from manufacturing facilities for textiles that were coating with p facts to making dishware that was coated with teflon type substances, to landfills, to a whole range of different industries that have used this material in the past. Does that answer the question?
Got it? Yep? And then with respect to those those types of sites, which ones have new remediated? What types of states have you remediated?
Yeah? Well, so, to be honest with you, there isn't a whole lot of remediation going on yet. Most most of all the sites out there have just been in a study mode where they're trying to figure out what the extent of contamination is and where the where the groundwater beneath the site and moving off the site is actually impacted with pfasts. So that's what most of the work it has been done so far. However, there are
some sites that have been remediated. We have we have actually treated about forty project sites or between forty and fifty project sites to date, and they've included everything from a small furniture manufacturing facility that was using p fas, to a major refinery that was having p fasts leave its facility into a river, to a superfund sites which was an old landfill that that was trying to go through a hazardous Waste Closure Action and they realized p FASc was on the site and so that us EPA
has utilized our technology to restore that site as well. So a broad range of facilities.
So when you say super fun, say, can you explain what that is?
Ah? Yeah, So super fun means that it was a super fund is A is a nickname an acronym force for the CIRCLA UH a Circle of law UH and and UH. What what that does is is basically, the U s c p A has money available if a site is abandoned and and there's no responsible party stepping forward, they will actually utilize that money UH to to implement
a remediation and clean up themselves. There's also UH sites that are named as a super Fund Project site by the U s c p A, whereby responsible parties will get together and they'll do the clean up themselves under the auspice or under the direction of the U s c p A, and they can be named as a super Fun site as well. Got it.
P past hasn't been just need hazards planners since so if if if a substance that does any hazardous then under CIRCLA e p A can comment and try to try to force responsible parties to clean it up. But these substances have not yet been designated and hazardous, So why would they.
Be remediating those or why would they even how would they even know that they need to be remediated to currently existing super fund sites.
Yeah, well, uh so, just just to be clear here, when we say CIRCLA, we mean the Comprehensive Environmental Response, Compensation and Liability Act. It was think there was, Yeah, that was put in and that was an acted in nineteen eighty and and and so under that under that act, they're under that act, the e p A has the
right to designate certain compounds as hazardous substances. And when a substance named as a hazardous substance under CIRCLA, it means that that there has to that anyone having spilled that material has to under the National Contingency Plan, has to alert the U s c p A, and then has to to implement a cleanup. So that's that's really
what that means. At at this point in time, the U s c p A has come forward and said, hey, we we put forward a roadmap on p fas Administer Reagan put together a roadmap that that that says that we will in fact designate this as a a hazardous substance under circlet. But it has not yet been done. That has not been that has not happened, and and
the thought is it will happen early next year. However, states themselves have taken this, have taken the action to implement regulations and put in clean up levels for for for p fas, particularly p f O S and p fo A, which are two specific molecules within the PFAS family. So states have implemented clean up levels. However, federal facilities like military bases, FAA controlled airports, and so forth, are not obligated to clean up to those state levels, and
they're waiting for federal guidance. So once the federal government that is, the e p A, implements this rule making and says, hey, we're going to make p facs a hazardous substance, these military bases in the FAA will have to comply.
Got it. So it sounds like some are starting to already.
Yes, I think there are people that are starting to get ahead of it. You know, most of the work that we have done the forty starts, we've cleaned up. There have been a couple that are that are federal. However, mostly at state level, the federal is still waiting for for the the other shoe to drop on the on the substance designation hazard substance. Got it.
We've talked about, you know, other sites besides water authorities that may require remediation. Three and one of one of the manufacturers of PFASs reported at tentative, well, they just submitted a proposal to resolve through a class action water authority cases for lawsuits for remediation, reportedly for ten to twelve point five billion dollars, and that would resolve p FAST claims related to costs to drink drinking water to
treat drinking water. Do you have any idea of how many of the other sites, the non water authority sites you described exist.
Yes, so again, other than that the drinking water sites that are impacted A good, a really good basis for this was a paper that was published by Derek Salvatory and a group at Northeastern University, and a few others were involved too. There was something like ten authors on this paper, so it's pretty comprehensive. It was published in the American Chemical Society Journal Environmental Science and Technology Letters,
and it was published last year, late last year. And what they did is they put together a probabilistic model and tried to statistically estimate how many project sites or how many sites out there in the US are impacted by pfasts or contaminated by PFAST and they came up with about five hundred and nineteen airports, thirty five hundred
military bases, and some forty nine thousand industrial facilities. And those industrial facilities would include landfills, refineries, and manufacturing, et cetera. So it's a huge number. And in terms of liability, I mean, I can tell you, you know, a remediation, a remediation of the refinery site that I mentioned that
we had completed. A large engineering firm, multinational engineering firm undertook that cleanup and they compared our technology to the typical technology of pumping the water from the ground and treating it and they said, just you know, just the installation alone would have been twenty some million dollars just for the installation of the pumping system implementing our technology. They were able to do that for about three point
five million. So there's a huge looming latent liability out there to clean these sites up, and the typical way to do that is to try to recover the water from the subsurface and put it through different techniques to concentrate it, whether you're bubbling it and skimming off the bubbles or whether you're putting it on ato activity carbon. Those pumping systems are trying to flush the pfast out
of the subsurface. And flushing it out of the subsurface is what's been coined by a leading researcher remediation of perpetuity. Trying to wash pfasts out of the subsurface aquaf for by pumping the water out will take more than my lifetime, your lifetime, your children's lifetime. It's going to take one hundred plus years of pumping. So it's at a huge cost on an annual basis. So it's really a looming huge liability.
So there's pumping and treating and then what you do, which I'll ask you to explain in a minute. And then with respect to water authorities, what are the methods there using to address p fasts in the drinking water.
Okay, so again looking at the sites, now we're downgradient, we're down where the drinking water is being impacted. Right where drinking water is being impacted, what they will most likely do is is the water they pulled out of the ground, they have to treat that to some extent anyway, So it's already in a pipe, so what they'll what they'll do is they will put that through probably what's
known as ion exchange resins. Much like a water software takes takes takes minerals out, there are certain ion exchange resins that that will pull p fasts out and then they can regenerate those or dispose of them, or they'll put it through activated carbon which is like charcoal, huge charcoal filters that they'll put the water through and it'll strip the p fass out onto the carbon. So that's the types of technologies that they will implement at the water at the water authorities.
Yes, and so with respect to the other sites that we talked about in the technology that you've implemented that you'll explain in a minute, why would those other sites have to be remediated if they're already treating the water, if they intend to treat the water at the water authority anyway.
Right, Well, you have to remember that the p fast moving in the subsurface in groundwater, is it spreads, you're impacting a wider and wider and wider amount of the water resource. We have not all of groundwater's impact factory, very small amounts impacted at this point, and so the intent is to the intent of designating this as a hazardous substances to make it so that people have to
clean it up. What last thing we want is the water resources, the groundwater to be impacted throughout the US so that it always has to be treated with these expensive methodologies. The other thing you have to remember is that groundwater impact surface water, So all the streams, all
the lakes, they are all in communication with groundwater. And when PFAST is in the groundwater leaking from a military base or an airport or an industrial facility into the groundwater, it's migrating under people's homes, through past their domestic wells, and then into streams where it makes foam and it impacts the fish, the wildlife. It's toxic and impacts them as well. So it's insidious and it has a large
natural resource damages liability with it. With the impacting of groundwater with PFAST, not to mention third party liability from people that are swimming in lakes and streams that are being impacted by pfast generated from a nearby airport or military base. So it's not just drinking water, it's the natural resource itself that's being impacted.
So we've heard that in a number of companies. I've entered into deals to resolve water authority lawsuits, So lawsuits over the drinking water. What are and you touched upon this, but what are the remaining risks for What other risks are out there for those companies, Well, all.
Of the remediation risk. When I say remediation, I mean cleaning up the sites that caused the problem. So you know that is a huge looming liability. As I said, you know forty nine thousand industrial facilities out there that if this probabilistic models correct, a large portion of those are going to have to implement a remediation of groundwater
and soil. They're going to have to treat the source of the contamination on their site, and if it's going off site, they're probably going to have to treat the groundwater that's migrated off site. And that's you know, as the example I gave you the twenty million dollars for
the refinery. That's the cost of putting in a pumping system if you know, somewhere are going to be somewhere between three million and twenty million dollars just for the installation, So it could be at it's a huge liability.
Yeah, And that's just you know, just just assuming that their you know, causation could be proven and like you know, the p FEST could be tied to those companies. So with respect to and so we talked. I think he said, you were talking about a refinery where the installation of the pumping and treating method could just could cost three to twenty million dollars. Is that true? Like at any p FAS site, like for example, another a triple le F site, because I'm trying to get an idea of
and that's the firefighting home sites. I'm trying to get an idea of how much remediation and a single a triple left site could cost.
Well, again, and it depends on the technology used. There will be the sorce area. We'll have to stabilize the soils or aul the soils off to be disposed of. So worst case, worst case, it would be you know, in the in the tens of millions of dollars for soil treatment, uh and then and then tens of million dollars of dollars to install a pumping system and then to operate it a million, you know, eight hundred thousand
dollars a year to operate something like that. I mean that's eight hundred to a million dollars operated per year. So that's a you know, that's sort of the worst case with our technology that we've developed.
We've been is that what is that technology called?
Yeah, so, so the technology that we've developed is and let me just finish my thought. Instead of a twenty million dollar install on eight hundred thousand dollars a year or so, there's a military base where we just did a cost comparison. You know, we were able to do an installation for under four million dollars with no operation costs at all. So we can lower the liability for these sites by you know, by by a factor of three,
so three five to three. So so we've taken a twenty million dollar installed down a three million with no operation of maintenance. So over time that could be one tenth the cost of a typical pumping system. So what we've done is instead of taking the water out of the ground and putting it through filtration apparatus to try to filter it out, which is which is the traditional way to treat things, and then having to dispose of that material once you've once you've pulled it out of
the ground, which is a whole nother liability. You know, if you filter these chemicals out and put it onto carbon or onto iron exchange resident and then dispose of that, now you own part of the landfill under CIRCLA. Because anytime you dispose of things, it's joint in several liability under CIRCLEA if so, so it's a continuing liability for the responsible party. What we've done is we've taken activated carbon, the charcoal material, and we mill it to the size
of a red blood cell. We get it down to the size of one micron, and we wrap that with negatively charged polymers so that it stays in suspension at the one micron size, so it looks like water. It looks like black ink with the consistency of water. We actually then pour that down into the aquifer down wells and pour it right into the aquifer where it paints the all of the sand and soil and rock cracks are filled with water on the subsurface, it paints it black.
In other words, the surface has become coated with this carbon permanently. So we make the subsurface into which you could think of as a huge Brita filter. So we convert the contaminated aquifer into a huge purifying filter and it strips all the p fasts out. So when you get down gradient on the other side of the the area that we've treated, the water is coming out pure
without any without any p fascenter. And so you know, we've been doing this for years with other with other contaminants, treating the subsurface of the contaminants, and in the past say five years now, people have begun to use our technology. We call it plume Stop. A plume is a is a body of contamination within an aquifer. So we call it plume stop because it just binds up all the p fasts stops the plume from migrating. The water continues
to migrate in the subsurface. The groundwater moves, but it's now purified and cleaned as it moves through the air through the area. So the plume stop technology requires no op and maintenance. So once you put it in the ground, you're done for. And if you treat the source up gradient, if you you know, the fire training pit or whatever, you know, one application of plume stop could last forever.
If for some reason you can't treat the incoming concentration of p FAST into the area that you've treated, you can simply reinject it in fifty years and it'll give you another fifty one hundred years of treatment. So it's a it's a way that you can actually limit the liability by eliminating any risk to anyone down gradient. So you know, remember that risk environmental risk is equal to hazard times exposure. And while the PFAST has a hazard
because it can't be degraded, doesn't degrade. Well, that's why it's called forever chemical. The hazard that is not a risk if you can eliminate the exposure to it. So by buying it up in the subsurface, you know, fifty sixty feet down, it's at no risk to anybody and it's not migrating, so there's no risk downgrading. So that's what we're able to do with plume stop.
About it, and so turn shifting years a little, I want to talk about the EPA proposal. They proposed a rule in March to set maximum contaminant levels and water. Can you explain what maximum contaminant levels are and what obstacles there could be to achieving those levels?
Okay, so that's under the Safe Drinking Water Act, and that's the MCLs and maximum concentration level they were proposed. They're very, very very low. They're in the range of four parts per trillion. It's near the level of quantitation that you can you can achieve and analytical methods, and it's it's for a few key a few two key p fast compounds and then an index for the balance of them. It's Uh, they're proposed. I don't know when
that that will be uh, when they'll be promulgated. However, it you know it it is forced this for it's mostly relating to drinking water and whether those m c ls will be enforced for cleanup levels under CIRCLA has yet to be determined. That there's some questions about how they will try to implement those levels. Uh. But but uh, once once that's finalized, it certainly is going to change the complexion of of the environmental remediation requirements for pfacts.
It will drive demand for remediation, and uh, it will drive liability for industries that are using these compounds and potentially for the the original manufacturers will have to see.
So what types of sites do you think will be the main focus of key fast remediation in the future.
Well, as I say, you know, military bases, airports, and these industrial facilities that range and everything from refineries to small and you know manufacturing facilities, et cetera. I mean, there's there's a whole range of different different types of of projects that we'll see undertake remediation.
Right, So it sounds like it's it's not quite over yet that will be discussing this probably years from now.
Yeah, I would say it's just beginning.
Okay, Well, thank you so much, Scott. I really appreciate your time and look forward to reading more about what you have to say in the future.
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