PFAS 2026 Whitepaper

Gabelli Funds September 14, 2026 249 Royal Palm Way Palm Beach, FL 33480 Tel (

- PFAS - “Forever Chemicals” 2026 Update

Rosemarie Morbelli, CFA Timothy M. Winter, CFA (

Wayne C. Pinsent, CFA Michael Neviera (

September 14, 2026 Gabelli Funds 249 Royal Palm Way Palm Beach, FL 33480 Tel (

- PFAS - Overview On April 10, 2024, for the first time ever, the EPA issued limits for per- and polyfluoroalkyl substances (PFAS), the “forever chemicals,” in drinking water, and shortly after, designated select PFAS compounds as hazardous substances. Public systems have until 2027 to finish initial monitoring; however, under a 2026 proposal, systems can request an extension until 2031 to meet PFOA and PFOS limits. Note that the current administration has kept strict limits in place for the two most common compounds of PFAS. Adherence to these guidelines will provide unique and timely investment opportunities for several select water and soil treatment suppliers and publicly traded water utilities. To reflect current developments, we are taking this opportunity to provide the 3rd update to our 2023 whitepaper “PFAS- An Overview of the “Forever Chemicals.” We will also be holding our 4th PFAS Symposium on September 24, 2026 in New York City.

PFAS have become an increasingly significant environmental and public health concern due to their persistence and inability to naturally degrade. To meet the final EPA regulations of 4 parts per trillion (ppt) for Perfluorooctanoic acid, or PFOA, and perfluorooctane sulfonic acid, or PFOS, the two most common PFAS found in drinking water, the nation’s water and wastewater utilities will require as much as $50 billion of capital investment over the next five years and up to an additional $3.5 billion of annual operating expense.

Enforcement of the regulations will lead to increased demand for treatment equipment and capacity restraints on the available engineers, contractors, and suppliers to build the required treatment systems. We expect the suppliers of the three most recognized effective treatment technologies (activated carbon, anion exchange, and membrane filtration) as well as the suppliers of novel remediation technologies to be beneficiaries given the anticipated significant increase in demand. We also expect the nation’s water utilities to benefit from the enhanced rate base growth and increased acquisition opportunities.

According to the EPA, PFAS are a group of around 15,000 environmentally persistent, man-made chemicals used in industrial and commercial applications for firefighting activities, grease resistance, water repellents, and non-stick cookware, among others. Currently there are over 600 PFAS compounds which are EPA-approved for sale or importation into the United States. These molecules, with a chain of linked carbon and fluorine atoms, are valued for their high resistance to oil, water and heat. Due to their widespread use, PFAS are found at low, ambient levels in the environment.

PFOA and PFOS are two of the PFAS molecules often found in drinking water. These two legacy compounds are either phased out or no longer manufactured in the U.S. and Europe; however, they remain present in the environment. The presence of PFAS compounds in several water sources, including drinking water, is of increasing public concern due to their environmental persistence and perceived health concerns. As per the National Center for Biotechnology Information, PFOAs are estimated to be detectable in the blood of more than 98% of the U.S. population. Research shows that they increase cholesterol level, affect the immune system, affect fertility and child development, and increase the risk of prostate, kidney, and testicular cancers. As more research is being done on PFAS, it indicates that it can cause health risks even at very low levels, which is why regulations to reduce exposure have become a large focus for the EPA in the US and around the world. Exhibit 1 – PFAS Potential Risks