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Can't seem to understand this question. Can someone post an official explanation for the question ?

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Why option C is correct?
It said that "before...requiring testing" that means the dangerous materials are manufactured before the testing. Drawing paralel to the chemical company, we know the testing is already required.

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Can someone provide the official explanation as to why C is correct. I am equally confused between B & C and marked C only because of the time frame being showcased in both the options.
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As GMATNinja says don't miss key modifiers. This is perfect example, here key modifiers is "company's long-established dump".

So if dump contains large no of chemical dated back from pre mandate, it is quite possible that leak will concern public. Hence option (c) is our answer.

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Why option C is correct?
It said that "before...requiring testing" that means the dangerous materials are manufactured before the testing. Drawing paralel to the chemical company, we know the testing is already required.

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­Specific to you query I would try to answer.

­To allay public concern about chemicals that are leaking into a river from a chemical company's long-established dump, a company representative said, "Federal law requires that every new chemical be tested for safety before it is put onto the market. This is analogous to the federal law mandating testing of every pharmaceutical substance for safety."

(C) Before the federal law requiring testing of nonpharmaceutical chemicals went into effect recently, there were 40,000 such chemicals
being manufactured, many of them dangerous.

See the blue text as key points around which the passage is built.
- Long established dump
- New chemical tested for safety under federal law
- Analogy(a red flag in itself) of testing pharmaceutical substance for safety

Now the law is for new chemicals. But as per C there are 40K chemicals many of which are dangerous that may have been already dumped. And this is over the fact that the law came into effect recently. 

Hence the concerns still remain as it is. Note that it is also better than A.  
Thus, it is the best answer.­

HTHs.
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