“Essential” Uses of PFAS Under Scrutiny

Chamber of Commerce analysis evaluates potential fiscal impacts of PFAS bans and restrictions for seven industries

The U.S. Chamber of Commerce recently issued a report titled "Essential Chemistries Providing Benefits Across the U.S. Economy," identifying "essential" uses of per- and polyfluoroalkyl substances (PFAS) in seven industries and the potential impact of the loss of these essential fluorochemistries on those industries and the national economy. Their analysis estimates the fiscal impact of PFAS bans and other restrictions in terms of lost labor income, employment, gross domestic product, and economic output.

This report was issued in response to public policies being considered both in the U.S. and abroad that would threaten the use of PFAS and follows the European Chemicals Agency's 2023 report evaluating the use, criticality, and replaceability of PFAS compounds in a wide variety of applications. Prior reports, however, do not analyze the impact of potential PFAS bans on the U.S. economy.

PFAS use and potential bans in seven targeted industries

The Chamber of Commerce selected the following seven industries due to their dependence on essential fluorochemistries - gases, liquids, and solids - and evaluated their fiscal impact on a state-by-state basis while providing a description of industry-specific PFAS uses.

• Vehicles
  • Engine coolants, lubricants, and coatings to enhance fuel efficiency, minimize wear and friction, and prevent corrosion; seals, hoses, and gaskets; refrigerants; separator material in batteries to improve electrode adhesion, reduce short circuits, and enhance battery performance and safety; coolants to prevent battery overheating during charging
• Semiconductor manufacturing
  • Photolithography formulations, antireflective coatings, barrier layers, and buffer coatings; fluorinated surfactants to increase wettability; etching and cleaning; lubricants for high-precision automation; heat transfer fluids for precise temperature control; hermetic sealing and durability of packaging for semiconductor devices; facility infrastructure for safety, contamination control, and resilience
• Data centers
  • Low global-warming-potential fluorinated gases to cool electronic equipment and provide fire suppression
• Energy transition and emerging energy technologies (solar panels, wind turbine towers and blades, and subcomponents of lithium-ion batteries)
  • Coatings to protect equipment from the environment; heat transfer materials; and insulation in lithium-ion batteries
• Defense
  • Pyrotechnics and missile munition manufacturing; coatings that work well in extreme environments; personal protective equipment textiles against chemical and biological threats; refrigerants
• Healthcare
  • Inert, lubricious, insulating materials in medical devices and equipment and surgical tools; certain active pharmaceutical ingredients; water-repelling pharmaceutical packaging to increase shelf life; fluorinated gases for refrigeration and inhalers; sterilization.
• Aerospace manufacturing
  • Durable, high-temperature resistant, lightweight components, such as seals, gaskets, and insulating materials in fuel and hydraulic systems; wiring and insulation; high-performance coatings; transparent displays

According to the report, the use of fluorochemistries in these seven industries supports 6 million jobs; over $550 billion in labor income; over $200 billion in federal, state, and local taxes; and over $2.4 trillion in output. Together these industries constitute approximately $1 trillion, or about 4%, of U.S. GDP, shown by state in Figure 1.

Figure 1: Total GDP Impact for States of Selected Sectors Dependent on Fluorochemistries, from Essential-Chemistries_-Providing-Benefits-Across-the-U.S.-Economy.pdf (uschamber.com).

Impact

Developing viable replacements for PFAS across these sectors is challenging and could take more than 5 to 20 years, depending on the application. The report highlights how crucial aspects of the U.S. economy rely on essential fluorochemistries. These materials are indispensable to the seven key industries considered, and any sudden policy changes that may disrupt the use of these essential fluorochemistries will impact both the nation and the global economy.