[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2242 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2242

To require the Administrator of the Environmental Protection Agency to 
  establish a program to encourage voluntary environmental cleanup of 
                  facilities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 1993

  Mr. Swift introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To require the Administrator of the Environmental Protection Agency to 
  establish a program to encourage voluntary environmental cleanup of 
                  facilities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Voluntary Environmental Cleanup Act 
of 1993''.

SEC. 2. DEFINITIONS.

    As used in this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Affected site.--
                    (A) In general.--The term ``affected site'' means a 
                facility in a State that is determined by the State to 
                have environmental contamination that--
                            (i) could prevent the timely use, 
                        development, or reuse of the facility; and
                            (ii) is limited in scope and can be 
                        comprehensively and readily characterized.
                    (B) Exception.--Such term shall not include--
                            (i) any facility that is the subject of a 
                        planned or an ongoing response action under the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9601 et seq.);
                            (ii) any facility included, or proposed for 
                        inclusion, in the National Priorities List 
                        maintained by the Administrator under such Act;
                            (iii) any facility that is the subject of a 
                        planned or ongoing corrective action under 
                        section 3004(u) or 3008(h) of the Solid Waste 
                        Disposal Act (42 U.S.C. 6924(u) or 6928(h)), 
                        including any facility with respect to which a 
                        corrective action permit or order has been 
                        issued or modified to require the 
                        implementation of corrective measures;
                            (iv) any land disposal unit with respect to 
                        which a closure notification under subtitle C 
                        of the Solid Waste Disposal Act (42 U.S.C. 6921 
                        et seq.) has been submitted and closure 
                        requirements have been specified in a closure 
                        plan or permit;
                            (v) any facility that contains 
                        polychlorinated biphenyls subject to response 
                        under section 6(e) of the Toxic Substances 
                        Control Act (15 U.S.C. 2605(e));
                            (vi) any facility with respect to which an 
                        administrative order on consent or judicial 
                        consent decree requiring cleanup has been 
                        entered into by the President under the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9601 et seq.), the Solid Waste Disposal 
                        Act (42 U.S.C. 6901 et seq.), the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 et seq.), 
                        the Toxic Substances Control Act (15 U.S.C. 
                        2601 et seq.) or title XIV of the Public Health 
                        Service Act, commonly known as the Safe 
                        Drinking Water Act (42 U.S.C. 300f et seq.);
                            (vii) any facility owned or controlled by, 
                        or that is the subject of a planned or ongoing 
                        remediation of environmental contamination by, 
                        a department, agency, or instrumentality of the 
                        executive branch of the Federal Government; and
                            (viii) any facility at which assistance for 
                        response activities may be obtained pursuant to 
                        subtitle I of the Solid Waste Disposal Act (42 
                        U.S.C. 6991 et seq.) from the Leaking 
                        Underground Storage Tank Trust Fund established 
                        under section 9508 of the Internal Revenue Code 
                        of 1986.
            (3) Contaminant.--The term ``contaminant'' includes any 
        hazardous substance, as defined in section 101(14) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(14)) and petroleum-
        contaminated soil or debris.
            (4) Current owner.--The term ``current owner'' means, with 
        respect to a voluntary cleanup of an affected site, an owner of 
        the site that is an owner at the time of the cleanup.
            (5) Disposal.--The term ``disposal'' has the meaning 
        provided the term in section 1004(3) of the Solid Waste 
        Disposal Act (42 U.S.C. 6903(3)).
            (6)  Environmental contamination.--The term ``environmental 
        contamination'' means the existence at a facility of one or 
        more contaminants that may pose a health or environmental risk.
            (7) Facility.--The term ``facility'' has the meaning 
        provided the term in section 101(9) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601(9)).
            (8) Local government.--The term ``local government'' means 
        the governing body of a political subdivision of a State, 
        including the governing body of any county, parish, 
        municipality, city, town, township, Federally recognized Indian 
        tribe, or similar governing body.
            (9)  Site characterization.--
                    (A) In general.--The term ``site characterization'' 
                means an investigation that determines the nature and 
                extent of environmental contamination at an affected 
                site and meets the requirements referred to in 
                subparagraph (B).
                    (B) Investigation.--For the purposes of this 
                paragraph, an investigation that meets the requirements 
                of this subparagraph shall include an onsite 
                evaluation, and sufficient testing, sampling, and other 
                field data gathering activities, to accurately analyze 
                whether the site is contaminated and the health and 
                environmental risks posed by the environmental 
                contamination at the site. The investigation may also 
                include review of existing information (available at 
                the time of the review) and an offsite evaluation, if 
                appropriate.
            (10) Voluntary cleanup.--The term ``voluntary cleanup'' 
        means the remediation of environmental contamination at an 
        affected site undertaken and financed by a current owner or 
        prospective purchaser subject to oversight and approval by a 
        State.

SEC. 3. VOLUNTARY CLEANUP GRANT PROGRAM.

    (a) In General.--
            (1) Establishment of grant program.--The Administrator 
        shall establish a program to provide a grant to any State that 
        submits an application that is approved by the Administrator to 
        establish or expand a State voluntary cleanup program that 
        meets the requirements of paragraph (3).
            (2) Certification.--In an application for a grant under 
        this section, a State shall be required to certify that the 
        voluntary cleanup program of the State will meet the 
        requirements of paragraph (3).
            (3) Requirements for state voluntary cleanup program.--A 
        State voluntary cleanup program meets the requirements of this 
        paragraph if the State--
                    (A) provides adequate opportunities for public 
                participation, including prior notice and opportunity 
                for comment, in selecting voluntary cleanup actions;
                    (B) provides technical assistance throughout each 
                voluntary cleanup;
                    (C) provides adequate oversight and has adequate 
                enforcement authorities to ensure that voluntary 
                cleanups are completed in accordance with all 
                applicable Federal and State requirements, including 
                any ongoing operation and maintenance or long-term 
                monitoring activities; and
                    (D) requires the current owner or prospective 
                purchaser of an affected site to pay all costs incurred 
                by the State for oversight of the voluntary cleanup of 
                the site.
    (b) Grant Awards.--
            (1) In general.--In carrying out the program established 
        under subsection (a), the Administrator shall, subject to the 
        availability of appropriations, award a grant to the Governor 
        of each State that submits an application to the Administrator 
        in accordance with subsection (a).
            (2) Grant amount.--The amount of a grant awarded to any 
        State under subsection (a) shall be determined by the 
        Administrator on the basis of the financial need of the State 
        for establishing or expanding a voluntary cleanup program, and 
        shall be in an amount not less than $200,000, but not to exceed 
        $500,000, for each fiscal year.
            (3) Reporting.--Each State that receives a grant under 
        subsection (a) shall submit to the Administrator, not later 
        than 2 years after receipt of the grant, a progress report that 
        includes a description of the cleanups made in accordance with 
        the voluntary cleanup program of the State.
            (4) Termination of grants.--If the Administrator determines 
        that a State voluntary cleanup program no longer meets the 
        requirements of subsection (a)(3), the Administrator may 
        terminate a grant made to the State, and require full or 
        partial repayment of the grant award.
    (c) State Certification.--Each Governor of a State that receives a 
grant under this section shall, not later than 1 year after receipt of 
an initial grant, and annually thereafter, submit to the Administrator 
a certification that states--
            (1) the State voluntary cleanup program meets the criteria 
        referred to in subsection (a);
            (2) all cleanups achieved or undertaken pursuant to the 
        State voluntary cleanup program fully comply with all 
        applicable requirements of Federal or State law;
            (3) public participation opportunities have been adequate 
        during the process of selecting a cleanup method for each 
        voluntary cleanup;
            (4) voluntary cleanups achieved or undertaken pursuant to 
        the State voluntary cleanup program have been undertaken in a 
        manner that has reduced or eliminated health and environmental 
        risks to the satisfaction of the State; and
            (5) for any voluntary cleanup initiated pursuant to the 
        State voluntary cleanup program that has increased health and 
        environmental risks, the State has taken timely and appropriate 
        steps to reduce or eliminate the health and environmental 
        risks.
    (d) Statutory Construction.--Nothing in this Act is intended--
            (1) to impose any requirement on a State voluntary cleanup 
        program existing on or after the date of enactment of this Act 
        if the Governor of the State has not been awarded a grant under 
        this section; or
            (2) to preclude a Governor of a State with a voluntary 
        cleanup program referred to in paragraph (1) from submitting an 
        application for a grant under this section.

SEC. 4. SITE CHARACTERIZATION GRANT PROGRAM.

    (a) In General.--The Administrator shall establish a program to 
provide grants to local governments to conduct site characterizations 
for affected sites at which voluntary cleanups are being conducted or 
are proposed to be conducted under a State voluntary cleanup program 
that is the subject of a grant award under section 3.
    (b) Scope of Program.--
            (1) Grant awards.--In carrying out the program established 
        under subsection (a), the Administrator may award a grant to 
        the head of each local government that submits to the 
        Administrator an application to conduct a site characterization 
        at an affected site within the jurisdiction of the local 
        government.
            (2) Grant application.--An application for a grant under 
        this section shall--
                    (A) include a description of the affected site;
                    (B) include information demonstrating the financial 
                need of the owner of the affected site for funds to 
                conduct a site characterization;
                    (C) include an analysis that demonstrates the 
                potential of the affected site for creating new 
                business and employment opportunities on completion of 
                the cleanup of the site; and
                    (D) provide such other information, and be in such 
                form, as the Administrator determines appropriate to 
                carry out this Act.
            (3) Approval of application.--
                    (A) In general.--In making a decision whether to 
                approve an application submitted under paragraph (1), 
                the Administrator shall consider--
                            (i) the financial need of the owner of the 
                        affected site for funds to conduct a site 
                        characterization;
                            (ii) the estimated fair market value of the 
                        site after cleanup;
                            (iii) other economically viable, commercial 
                        activity on real property--
                                    (I) located within the immediate 
                                vicinity of the affected site at the 
                                time of consideration of the 
                                application; or
                                    (II) projected to be located within 
                                the immediate vicinity of the affected 
                                site by the date that is 5 years after 
                                the date of the consideration of the 
                                application;
                            (iv) the potential of the affected site for 
                        creating new business and employment 
                        opportunities on completion of the cleanup of 
                        the site;
                            (v) whether the affected site is located in 
                        an economically distressed community; and
                            (vi) such other factors as the 
                        Administrator considers relevant to carry out 
                        the purposes of the grant program established 
                        under this section.
                    (B) Grant conditions.--As a condition for awarding 
                a grant under this section, the Administrator may, on 
                the basis of the criteria considered under subparagraph 
                (A), attach such conditions to the grant award as the 
                Administrator determines appropriate.
            (4) Grant amount.--The amount of a grant awarded to any 
        local government under subsection (a) for characterization of 
        an affected site shall not exceed $100,000.
            (5) Termination of grants.--If the Administrator determines 
        that a local government that receives a grant under this 
        subsection is in violation of a condition of a grant award 
        referred to in paragraph (2), the Administrator may terminate 
        the grant made to the local government and require full or 
        partial repayment of the grant award.

SEC. 5. VOLUNTARY CLEANUP ASSISTANCE PROGRAM.

    (a) In General.--
            (1) Establishment of program.--The Administrator shall 
        establish a program to provide a loan to be used for the 
        cleanup of affected sites to an owner or a prospective 
        purchaser of an affected site (including a local government) at 
        which a voluntary cleanup is being conducted or is proposed to 
        be conducted under a State voluntary cleanup program that is 
        the subject of a grant award under section 3.
            (2) Disqualification.--If the Administrator determines that 
        an applicant has adequate resources to conduct, in the absence 
        of financial assistance provided under this section, a cleanup 
        that is the subject of a loan application, the Administrator 
        shall not approve the application.
    (b) Scope of Program.--
            (1) In general.--
                    (A) Loans.--The Administrator may award a loan to 
                be used to clean up an affected site to each eligible 
                applicant described in subsection (a)(1) that submits 
                an application to the Administrator that is approved by 
                the Administrator.
                    (B) Loan application.--An application for a loan 
                under this section shall be in such form as the 
                Administrator determines appropriate. At a minimum, the 
                application shall include the following:
                            (i) A description of the affected site, 
                        including the nature and extent of any known or 
                        suspected environmental contamination at the 
                        affected site and the legal description of the 
                        real property associated with the affected 
                        site.
                            (ii) A complete description of the 
                        financial standing of the applicant that 
                        includes a description of the assets, cash 
                        flow, and liabilities of the applicant.
                            (iii) A written certification that attests 
                        that the applicant has attempted, and has been 
                        unable, to secure financing from a private 
                        lending institution for the cleanup action that 
                        is the subject the loan application. The 
                        certification shall specify the name of each 
                        private lending institution to which the 
                        applicant submitted an application for a loan. 
                        With respect to each application to such a 
                        lending institution, the certification shall 
                        also specify--
                                    (I) the date that the loan 
                                application was submitted and the date 
                                that the applicant was notified of the 
                                refusal;
                                    (II) the amount of the loan 
                                requested;
                                    (III) the terms of the loan 
                                requested;
                                    (IV) proof of the refusal of the 
                                loan by the lending institution; and
                                    (V) the reasons given, if any, by 
                                the private lending institution for the 
                                refusal of the loan for the cleanup.
                            (iv) A justification for the amount of the 
                        financial assistance requested, including 
                        evidence that the amount of financial 
                        assistance requested by the applicant is not 
                        available to the applicant through other 
                        sources.
                            (v) The proposed method, and anticipated 
                        period of time required, to clean up the 
                        environmental contamination at the affected 
                        site.
                            (vi) An estimate of the proposed total cost 
                        of the cleanup to be conducted at the site.
                            (vii) An analysis that demonstrates the 
                        potential of the affected site for creating new 
                        business and employment opportunities on 
                        completion of the cleanup of the site.
            (2) Loan approval.--In determining whether to award a loan 
        under this section, the Administrator shall consider--
                    (A) the need of the applicant for financial 
                assistance to clean up the affected site that is the 
                subject of the loan application, taking into 
                consideration the financial resources available to the 
                applicant;
                    (B) the ability of the applicant to repay the loan 
                in a timely manner;
                    (C) the inability of the applicant to secure a loan 
                from a private lending institution or through other 
                means of financing;
                    (D) the extent to which the cleanup of the affected 
                site would reduce health and environmental risks caused 
                by the environmental contamination at, or from, the 
                affected site;
                    (E) the estimated fair market value of the affected 
                site after cleanup;
                    (F) other economically viable, commercial activity 
                on real property--
                            (i) located in the immediate vicinity of 
                        the affected site at the time of consideration 
                        of the application; or
                            (ii) projected to be located within the 
                        immediate vicinity of the affected site by the 
                        date that is 5 years after the date of the 
                        consideration of the application;
                    (G) the potential of the affected site for creating 
                new, or expanding existing, business and employment 
                opportunities on completion of the cleanup of the site;
                    (H) the estimated additional tax revenues expected 
                to be generated at the site as a result of the 
                voluntary cleanup;
                    (I) whether the site is located in an economically 
                distressed community; and
                    (J) such other factors as the Administrator 
                considers relevant to carry out the purposes of the 
                loan program established under this section.
            (3) Loan amount.--The amount of a loan made to an applicant 
        under this section shall not exceed--
                    (A) 75 percent of the cost of the cleanup that is 
                the subject of the loan; or
                    (B) $750,000,
        whichever is less.
            (4) State approval.--Each application for a loan under this 
        section shall, as a condition for approval by the 
        Administrator, include a written statement by the State under 
        whose voluntary program the voluntary cleanup is being 
        conducted, or proposed to be conducted that--
                    (A) the voluntary cleanup or proposed voluntary 
                cleanup is cost effective; and
                    (B) the estimated total cost of the voluntary 
                cleanup is reasonable.
    (c) Loan Agreements.--Each loan under this section shall be made 
pursuant to a loan agreement. At a minimum, the loan agreement shall 
include provisions that address the following items:
            (1)(A) The loan shall bear interest at the applicable rate 
        specified in subparagraphs (B) through (D).
            (B) For local government entities, the rate of interest 
        shall be 1 percentage point below the average current yield on 
        marketable obligations of the United States Treasury having 
        comparable maturities.
            (C) For prospective purchasers of an affected site, the 
        rate of interest shall be 1 percentage point above the average 
        current yield on marketable obligations of the United States 
        Treasury having comparable maturities.
            (D) For current owners of an affected site, the rate of 
        interest shall be 2 percentage points above the average current 
        yield on marketable obligations of the United States Treasury 
        having comparable maturities.
            (2) The maturity period of the loan (as determined by the 
        Administrator) shall not exceed 10 years.
            (3) The repayment of the loan during the maturity period 
        shall be in accordance with any schedule for payments that the 
        Administrator may specify in the loan agreement.
            (4) Each payment referred to in this section shall be made 
        to the Secretary of the Treasury for deposit in the general 
        fund of the Treasury.
            (5) If the sale or redevelopment of the affected site 
        results in a net profit to the applicant (taking into 
        consideration any amount of reimbursement that may be required 
        under this paragraph) in an amount greater than or equal to 10 
        percent, in addition to paying interest on the loan (as 
        specified in paragraph (1)), the applicant shall make a payment 
        to reimburse the Federal Government for the full and actual 
        costs incurred by the Federal Government of making the loan to 
        the applicant, including any administrative costs.
            (6) The applicant shall comply with all applicable Federal 
        and State laws (including regulations promulgated pursuant to 
        such laws) applicable to the cleanup and shall proceed in 
        accordance with any voluntary cleanup program in effect in the 
        State.
            (7) The applicant shall guarantee repayment of the loan.
            (8) The applicant shall use the loan solely for purposes of 
        cleaning up the environmental contamination at the affected 
        site, and shall return any excess funds to the Administrator 
        immediately on a determination by the Administrator that the 
        cleanup has been completed.
            (9) The loan shall not be transferable, unless the 
        Administrator agrees to the transfer in writing.
            (10) Such other terms and conditions that the Administrator 
        determines necessary to protect the financial interests of the 
        United States.
    (d) Federal Lien.--
            (1) In general.--A lien in favor of the United States shall 
        arise on the contaminated property subject to a loan under this 
        section. The lien shall cover all real property included in the 
        legal description of the property at the time the loan 
        agreement provided for in this section is signed, and all 
        rights to the property, and shall continue until the terms and 
        conditions of the loan agreement have been fully satisfied. The 
        lien shall arise at the time the United States grants a loan 
        under this section, and shall not be subject to the rights of 
        any purchaser, holder of a security interest, or judgment lien 
        creditor whose interest is or has been perfected under 
        applicable State law, except that any interest held by the 
        United States as security for a loan under this section shall 
        be subordinate to any lien on the property for taxes due on the 
        property to a State or political subdivision thereof.
            (2) Definitions.--As used in this paragraph, the terms 
        ``security interest'' and ``purchaser'' shall have the meaning 
        provided the terms in paragraphs (1) and (6), respectively, 
        under section 6323(h) of the Internal Revenue Code of 1986.
    (e) Enforcement.--
            (1) In general.--If any owner or prospective purchaser who 
        receives a loan under this section fails to comply with any 
        condition of a loan agreement entered into pursuant to this 
        section, the Administrator may request the Attorney General of 
        the United States to commence a civil action in an appropriate 
        district court of the United States to enforce the loan 
        agreement.
            (2) Jurisdiction of district court.--The district court 
        shall have jurisdiction to enforce the loan agreement and grant 
        such relief as the public interest and the equities of the case 
        may require.

SEC. 6. REGULATIONS.

     The Administrator shall promulgate such regulations as are 
necessary to carry out this Act. The regulations shall include the 
procedures and standards that the Administrator considers necessary, 
including procedures and standards for evaluating an application for a 
grant or loan submitted under this Act.

SEC. 7. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Voluntary Cleanup Grant Program.--There are authorized to be 
appropriated to the Environmental Protection Agency, to carry out 
section 3, an amount not to exceed $15,000,000 for fiscal year 1994, 
and $7,500,000 for each of fiscal years 1995 through 1997.
    (b) Site Characterization Program.--There are authorized to be 
appropriated to the Environmental Protection Agency, to carry out 
section 4, an amount to exceed $15,000,000 for each of fiscal years 
1994 through 1997.
    (c) Voluntary Cleanup Assistance Program.--There are authorized to 
be appropriated to the Environmental Protection Agency, to carry out 
section 5, an amount to exceed $15,000,000 for each of fiscal years 
1994 through 1997.
    (d) Availability of Funds.--The amounts appropriated pursuant to 
this section shall remain available until expended.

SEC. 8. REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and not later than January 31 of each of the succeeding 3 
calendar years thereafter, the Administrator shall prepare and submit a 
report to the Committee on Environment and Public Works of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives describing the achievements of each grant or loan 
program established under this Act.
    (b) Contents of Report.--The report shall, with respect to the 
programs established under this Act, include a description of--
            (1) the number of grant and loan applications received by 
        the Administrator during the preceding calendar year;
            (2) the number of grants and loans disapproved during the 
        preceding year, and the reasons for disapproval;
            (3) the number of grants and loans approved by the 
        Administrator during the preceding calendar year;
            (4) the amount of grants and loans made during the 
        preceding year, and an estimate of the total cleanup costs 
        incurred by parties receiving a loan under the voluntary 
        cleanup assistance program;
            (5) with respect to each voluntary cleanup program of a 
        State that was the subject of a grant under section 3--
                    (A) the purposes to which the grant awarded to the 
                State was applied; and
                    (B) the achievements of the program;
            (6) the affected sites identified by local governments and 
        the status of cleanup of such sites; and
            (7) the affected sites at which a cleanup was initiated 
        pursuant to the voluntary cleanup assistance program under 
        section 5, and the status of cleanup and beneficial reuse of 
        such sites.

SEC. 9. FUNDING.

    (a) Eligible Costs Defined.--For the purposes of each grant and 
loan program established under this Act, the term ``eligible costs'' 
shall include administrative and nonadministrative costs.
    (b) Nonadministrative Costs.--As used in this section, the term 
``nonadministrative costs'' shall include the cost of--
            (1) oversight for a cleanup by contractor, owner, or 
        prospective purchaser;
            (2) identifying the probable extent and nature of 
        environmental contamination at an affected site, and the 
        preferred manner of carrying out a cleanup at an affected site;
            (3) each cleanup, including onsite and offsite treatment of 
        contaminants; and
            (4) monitoring ground water or other natural resources.
    (c) Administrative Cost Limitation.--Not more that 15 percent of 
the amount of a grant or loan made pursuant to this Act may be used for 
administrative costs. No grant or loan made pursuant to this Act may be 
used to pay for fines or penalties owed to a State or the Federal 
Government.
    (d) Other Limitations.--Funds made available to a State pursuant to 
the grant program established under section 3 shall be used only for 
establishing or administering a voluntary cleanup program.

SEC. 10. STATUTORY CONSTRUCTION.

    Nothing in this Act is intended to affect the liability or response 
authorities of any other law (including any regulation) for 
environmental contamination including the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et. 
seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), the 
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), the Toxic 
Substances Control Act (15 U.S.C. 2601 et seq.), or title XIV of the 
Public Health Service Act, commonly known as the ``Safe Drinking Water 
Act'' (42 U.S.C. 300f et seq.).

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