One of the most widespread chemical pollutants found in ground water will not be evaluated by the EPA for the risks it poses in drinking water in a victory for the chemicals industry.

The EPA was ordered by Congress in 2016 to conduct a review of the 85,000 chemicals found in commerce. To start the process, the agency chose 10 high priority chemicals—compounds that are both highly toxic and known to accumulate in the environment. If a chemical is shown...