What you need for a complete Phase 2 PFAS Settlements claim

Apr 29, 2026

Guest article by Kenneth Sansone, senior partner, and Kyla Tengdin, education & outreach, at SL Environmental Law Group. They can be reached at ktengdin@slenvironment.com.

Throughout the country, local governments and public water systems are testing water supplies and collecting data to meet Phase 2 deadlines for the 3M and DuPont PFAS drinking water settlements. These settlements could provide nearly $14 billion to eligible agencies that have detected PFAS, often called forever chemicals, in their drinking water sources.

But the distribution of funds from these settlements is far from automatic. Although eligible public water systems were settlement participants by default unless they formally opted out in 2023, they must submit extensive documentation and testing data by July 31, 2026, to receive any payment. Systems that miss deadlines or submit incorrect or incomplete claims will be excluded. With billions of dollars on the line, now is the time to prepare a clear action plan to ensure your claims are submitted correctly, completely, and on time.

What you’ll need to start the claims process

All water systems must confirm their eligibility for the settlements and register before the claims process can begin. Entities that own multiple water systems, such as large utility companies that provide water service in more than one area, must register each individual water system separately.

Determining eligibility is not always straightforward. Generally, water agencies that detected PFAS in drinking water before the end of June 2023 were assigned to Phase 1 of the settlements, for which the claims deadlines have already passed. Those that did not detect PFAS until after that date — and, for the 3M settlement, also serve more than 3,300 people — are eligible for Phase 2.

However, some Phase 1 systems may still qualify to submit claims as part of the Phase 2 process, and certain systems serving fewer than 3,300 people could be eligible.

The settlements require PFAS testing data that is far more comprehensive than federal — and many state — programs have required. Claims must be supported by PFAS concentration data at each water source, making it unlikely that data from past testing initiatives will suffice. As defined by the settlement agreements, a water source is one that is or was used for drinking water and is either:

  • A groundwater well with sampling done at the wellhead. 
  • A surface water treatment plant, with sampling done at the entry point into the treatment plant.

You will need to test the PFAS concentrations at each of your system’s water sources, as defined above, using a lab-approved method and report them in your claims documentation. The settlements use a complex allocation methodology that scores each impacted water source; that score serves as the basis for a pro rata distribution of the settlement fund. Your system's base score will be calculated using two factors: 

  • Level of PFAS contamination: The highest level of PFOA, PFOS, and, if present, the highest other PFAS compound, detected in that source at any time.
  • Size of the water source: The annual production of the three highest producing years from 2013-2022, and the maximum flow rate or capacity. Inactive wells could also be eligible, so long as they can be tested and the maximum flow rate can be documented.

There is no specific dollar figure that corresponds to the size of a well or the level of contamination. Rather, the final payout will depend on the amount that all other eligible water systems receive.

Completing your system’s claims

Once you have confirmed your system’s eligibility in the settlements, registered it, and tested for all PFAS compounds at each water source, you will be ready to work on your claims. Claims Forms must be completed for each water source owned and/or operated by your water system — including those owned or operated jointly with another agency. For each source, systems will need to provide the following:

  1. PFAS detection levels
    • For impacted water sources (those with any measurable PFAS detections in any concentration, regardless of state or federal regulatory levels), you will need to provide PFAS testing results with extensive documentation. Your legal counsel can help determine what information will best support your claims.
    • For sources without PFAS detections, you will also need to submit documentation. Thorough reporting, even in the absence of detections, can protect your system’s ability to seek additional funding if contamination levels increase to exceed a state or federal Maximum Contaminant Level before the end of 2030.
  2. Size of each water source
    • Annual flow rates: Your claims will also need to include annualized records of production from each water source from 2013-2022. Incorrect calculation could result in errors that could interfere with your system’s receipt of funds.
    • Maximum flow rate: You will need to report the maximum flow rate, or maximum capacity, for each water source. As there are several options for documentation of these rates, your legal counsel can help determine which documents best support your claims.

Because the settlement rules and scoring methodology are highly technical, many utilities route claims through experienced internal or external counsel to confirm assumptions, documentation, and calculations—so they don’t inadvertently understate impacts and leave funds unclaimed.

The information above does not constitute legal advice. To learn more about the settlements and the claims process, visit www.pfaswatersettlement.com. For information about how this settlement could impact your city, please consult your city attorney.