[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1834 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1834

 To amend the Comprehensive Environmental Response, Compensation, and 
             Liability Act of 1980, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 7 (legislative day, January 25), 1994

Mr. Baucus (by request) (for himself and Mr. Lautenberg) introduced the 
   following bill; which was read twice and ordered referred to the 
  Committee on Environment and Public Works for consideration only of 
matters within that Committee's jurisdiction, provided that if and when 
reported from the Committee, the bill then be referred to the Committee 
 on Finance for consideration only of matters within that Committee's 
      jurisdiction for a period not to exceed thirty session days

_______________________________________________________________________

                                 A BILL


 
 To amend the Comprehensive Environmental Response, Compensation, and 
             Liability Act of 1980, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Superfund Reform 
Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
           TITLE I--COMMUNITY PARTICIPATION AND HUMAN HEALTH

Sec. 101. Purposes and objectives.
Sec. 102. Early, direct and meaningful community participation.
Sec. 103. Community working groups.
Sec. 104. Citizen information and access offices.
Sec. 105. Response to comments.
Sec. 106. Multiple sources of risk demonstration projects.
Sec. 107. Assessing risks from multiple sources.
Sec. 108. Multiple sources of risk in priority setting.
Sec. 109. Disease registry and medical care providers.
Sec. 110. Substance profiles.
Sec. 111. Determining health effects.
Sec. 112. Public health and related health activities at National 
                            Priorities List sites.
Sec. 113. Health studies.
Sec. 114. Distribution of materials to health professionals and medical 
                            centers.
Sec. 115. Grant awards/contracts/community assistance activities.
Sec. 116. Public health recommendations in remedial actions.
Sec. 117. Agency for Toxic Substances and Disease Registry 
                            notification.
                         TITLE II--STATE ROLES

Sec. 201. State authority.
Sec. 202. Transfer of authorities.
Sec. 203. State role in determination of remedial action taken.
Sec. 204. State assurances.
Sec. 205. Siting.
Sec. 206. The National Priorities List.
Sec. 207. The State Registry.
                     TITLE III--VOLUNTARY RESPONSE

Sec. 301. Purposes and objectives.
Sec. 302. State voluntary response program.
Sec. 303. Site characterization program.
                   TITLE IV--LIABILITY AND ALLOCATION

Sec. 401. Response authorities.
Sec. 402. Compliance with administrative orders.
Sec. 403. Limitations to liability for response costs.
Sec. 404. Liability.
Sec. 405. Civil proceedings.
Sec. 406. Limitations on contribution actions.
Sec. 407. Scope of rulemaking authority.
Sec. 408. Enhancement of settlement authorities.
Sec. 409. Allocation procedures.
                       TITLE V--REMEDY SELECTION

Sec. 501. Purposes and objectives.
Sec. 502. Cleanup standards and levels.
Sec. 503. Remedy selection.
Sec. 504. Miscellaneous amendments to section 121.
Sec. 505. Response authorities.
Sec. 506. Removal actions.
Sec. 507. Transition.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Interagency agreements at mixed ownership and mixed 
                            responsibility facilities.
Sec. 602. Transfers of uncontaminated property.
Sec. 603. Agreements to transfer by deed.
Sec. 604. Alternative or innovative treatment technologies.
Sec. 605. Definitions.
Sec. 606. Conforming amendment.
                           TITLE VII--FUNDING

Sec. 701. Authorizations of appropriations.
Sec. 702. Orphan share funding.
Sec. 703. Agency for Toxic Substances and Disease Registry.
Sec. 704. Limitations on research, development and demonstration 
                            programs.
Sec. 705. Authorization of appropriations from general revenues.
Sec. 706. Additional limitations.
                         TITLE VIII--INSURANCE

Sec. 801. Short title.
Sec. 802. Environmental Insurance Resolution Fund.
Sec. 803. Financial statements, audits, investigations, and 
                            inspections.
Sec. 804. Stay of pending litigation.
Sec. 805. Sunset provisions.
Sec. 806. Sovereign immunity of the United States.
Sec. 807. Effective date.
                             TITLE IX--TAX

Sec. 901. Amendments to the Internal Revenue Code of 1986.
Sec. 902. Environmental fees and assessments on insurance companies.
Sec. 903. Funding provisions for Environmental Insurance Resolution 
                            Fund.
Sec. 904. Resolution Fund not subject to tax.

           TITLE I--COMMUNITY PARTICIPATION AND HUMAN HEALTH

SEC. 101. PURPOSES AND ACTIVITIES.

    The purposes and objectives of the community participation 
activities required by this title are to--
            (a) inform citizens and elected officials at all levels of 
        government of the existence and status of facilities listed on 
        the National Priority List and contaminated sites identified on 
        State Registries (as established by section 207 of this Act);
            (b) provide citizens with information regarding the 
        Superfund identification and cleanup process and maintain lists 
        of technical, health and other relevant experts licensed or 
        located in the state who are available to assist the community;
            (c) ensure wide dissemination of and access to information 
        in a manner that is easily understood by the community, 
        considering any unique cultural needs of the community, 
        including presentation of information orally and distribution 
        of information in languages other than English; and
            (d) ensure that the President is aware of and considers the 
        views of affected communities.

SEC. 102. EARLY, DIRECT AND MEANINGFUL COMMUNITY PARTICIPATION.

    (a) Section 117(e)(1) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, referred to in this Act as 
``the Act'' (42 U.S.C. 9617) is amended by amending the first sentence 
to read as follows:
            ``(1) Authority.--Subject to such amounts as are provided 
        in appropriations Acts and in accordance with rules promulgated 
        by the President, the President may make grants or services 
        available to any group of individuals which may be affected by 
        a release or threatened release of a hazardous substance or 
        pollutant, or contaminant at or from a facility where there is 
        significant response action under this Act including, a site 
        assessment, remedial investigation/feasibility study, or 
        removal or remedial action.''.
    (b) Section 117(e) of the Act is amended by striking paragraph (2) 
and inserting in the following:
            ``(2) Amount.--The amount of any grants or services may not 
        exceed $50,000 for a single recipient of grants or services. 
        The President may waive the $50,000 limitation in any case 
        where such waiver is necessary to carry out the purposes of 
        this subsection. Each recipient of grants or services shall be 
        required, as a condition of the grants or services, to 
        contribute at least 20 percent of the total costs of the 
        technical assistance for which such grants and services are 
        made. The President may waive the 20 percent contribution 
        requirement if the grants or services recipient demonstrates 
        financial need, and such waiver is necessary to facilitate 
        public participation in the selection of remedial action at the 
        facility. Not more than one award or grants or services may be 
        made with respect to a single facility, but the grants or 
        services may be renewed to facilitate public participation at 
        all stages of remedial action.''.
    (c) Section 117 of the Act (42 U.S.C. 9617) is amended by adding 
after subsection (e) the following new subsections:
    ``(f) Early, Direct and Meaningful Community Involvement.--The 
President shall provide for early, direct and meaningful community 
involvement in each significant phase of response activities taken 
under this Act. The President shall provide the community with access 
to information necessary to develop meaningful comments on critical 
decisions regarding facility characterization, risks posed by the 
facility, and selection of removal and remedial actions. The President 
shall consider the views, preferences and recommendations of the 
affected community regarding all aspects of the response activities, 
including the acceptability to the community of achieving background 
levels.
    ``(g) Information To Be Disseminated.--In addition to other 
information the President considers appropriate, the President shall 
ensure that the community is provided information on the following:
            ``(1) the availability of a Technical Assistance Grant 
        (TAG) under subsection (e), directions on completing the TAG 
        application, and the details of the application process;
            ``(2) the possibility (where relevant) that members of a 
        community may qualify to receive an alternative water supply or 
        relocation assistance;
            ``(3) the Superfund process, and rights of private citizens 
        and public interest or community groups;
            ``(4) the potential for or existence of a Community Working 
        Group (CWG) established under subsection (i) (as added by the 
        Superfund Reform Act of 1994); and
            ``(5) an objective description of the facility's location 
        and characteristics, the contaminants present, the known 
        exposure pathways, and the steps being taken to assess the risk 
        presented by the facility.
    ``(h) Process For Involvement.--As early as practicable after site 
discovery, the President shall provide regular, direct, and meaningful 
community involvement in all phases of the response activities at the 
facility, including--
            ``(1) Site assessment.--Whenever practicable, during the 
        site assessment, the President shall solicit and evaluate the 
        concerns and interests of the community likely affected by the 
        facility. The evaluation may consist of face-to-face community 
        surveys, a minimum of one public meeting, written responses to 
        significant concerns, and other appropriate participatory 
        activities.
            ``(2) Remedial investigation/feasibility study.--During the 
        remedial investigation and feasibility study, the President 
        shall solicit the views and preferences of the community on the 
        remediation and disposition of the hazardous substances, 
        pollutants or contaminants at the site. The community's views 
        and preferences shall be described in the remedial 
        investigation and feasibility study and considered in the 
        development of remedial alternatives for the facility.''.

SEC. 103. COMMUNITY WORKING GROUPS.

    Section 117 of the Act (42 U.S.C. 9617) is amended by adding after 
subsection (h) (as added by this Act) the following new subsection:
    ``(i) Community Working Groups.--
            ``(1) Creation and responsibilities.--The President shall 
        provide the opportunity to establish a representative public 
        forum, known as a Community Working Group (CWG), to achieve 
        direct, regular and meaningful consultation with community 
        members throughout all stages of a response action. The 
        President shall consult with the CWG at each significant phase 
        of the remedial process.
            ``(2) Information clearinghouse.--The CWG shall serve as a 
        facility information clearinghouse for the community. In 
        addition to maintaining records of facility status and lists of 
        active citizen groups and available experts, the CWG shall also 
        be a repository for health assessment information and other 
        related health data.
            ``(3) Land use recommendations.--To establish land use 
        expectations more reliably, and obtain greater community 
        support for remedial decisions affecting future land use, the 
        President shall consult with the CWG on a regular basis 
        throughout the remedy selection process regarding reasonably 
        anticipated future use of land at the facility. The CWG may 
        offer recommendations to the President at any time during the 
        response activities at the facility on the reasonably 
        anticipated future use of land at the facility, taking into 
        account development possibilities and future waste management 
        needs. The President shall not be bound by any recommendation 
        of the CWG. However, when the CWG achieves substantial 
        agreement on the reasonably anticipated future use of the land 
        at the facility, the President shall give substantial weight to 
        that recommendation. In cases where there is substantive 
        disagreement within the CWG over a recommendation regarding the 
        reasonably anticipated future use of land at the facility, the 
        President shall seek to reconcile the differences. In the event 
        of continued substantive disagreement, substantial weight shall 
        be given to the views of the residents of the affected 
        community. Should the President make a determination that is 
        inconsistent with a CWG recommendation on the reasonably 
        anticipated future use of land at the facility, the President 
        shall issue a written reason for the inconsistency.
            ``(4) Members.--CWG membership shall not exceed twenty 
        persons. CWG members shall serve without pay. Nominations for 
        CWG membership shall be solicited and accepted by the 
        President. Selection of CWG members shall be made by the 
        President. In selecting citizen participants for the CWG, the 
        President shall provide notice and an opportunity to 
        participate in CWGs to persons who potentially are affected by 
        facility contamination in the community. Special efforts shall 
        be made to ensure that the composition of CWGs reflects a 
        balanced representation of all those interested in facility 
        remediation. In general, it shall be appropriate for the 
        President to offer members of the following groups 
        representation on a CWG--
                    ``(A) Residents and/or landowners who live on or 
                have property immediately adjacent to or near the 
                facility, or who may be directly affected by releases 
                from the facility, with a minimum of one representative 
                of the recipient a grant for technical assistance, if 
                any, awarded under subsection (e);
                    ``(B) Persons who, although not physically as close 
                to the facility as those in the group identified in 
                subparagraph (A), may be potentially affected by 
                releases from the facility;
                    ``(C) Members of the local medical community who 
                have resided in the community for at least five years;
                    ``(D) Representatives of Indian tribes;
                    ``(E) Representatives of citizen, environmental or 
                public interest groups with members residing in the 
                community;
                    ``(F) Local government officials;
                    ``(G) Workers at the facility who will be involved 
                in actual cleanup operations;
                    ``(H) Persons at the facility during response 
                actions;
                    ``(I) Facility owners and the significant PRPs who, 
                whenever practicable, represent a balance of interests; 
                and,
                    ``(J) Members of the local business community.
            ``(5) Other community views.--The existence of a CWG shall 
        not affect or diminish any other obligation of the President to 
        consider the views of any person in selecting response actions 
        under this Act.''.

SEC. 104. CITIZEN INFORMATION AND ACCESS OFFICES.

    Section 117 of the Act (42 U.S.C. 9617) is amended by adding after 
subsection (i) (as added by this Act) the following new subsection:
    ``(j) Citizen Information and Access Offices.--
            ``(1) Creation and responsibilities.--The Administrator 
        shall ensure that an independent Citizen Information and Access 
        Office (CIAO) is established in each state and on each tribal 
        land affected by a National Priorities List facility.
            ``(2) Primary functions.--The primary functions of each 
        CIAO shall be to--
                    ``(A) inform citizens and elected officials at all 
                levels of government of the existence and status of 
                National Priorities List facilities in the state;
                    ``(B) provide citizens with information about each 
                phase of the Superfund process, including the site 
                identification, assessment and cleanup phases;
                    ``(C) ensure wide distribution of information that 
                is easily understood by citizens;
                    ``(D) serve as a state-wide, or tribal land-wide 
                clearinghouse of information; and
                    ``(E) assist in the Administrator's efforts to 
                notify, nominate, and select potential Community 
                Working Group members.''.

SEC. 105. RESPONSE TO COMMENTS.

    Section 117(a) (42 U.S.C. 9617(a)) of the Act is amended by 
striking ``both of'' from the phrase immediately preceding paragraph 
(1) and by inserting after paragraph (2) the following new paragraph:
            ``(3) Consider the recommendations of any Community Working 
        Group, community members and Technical Assistance Grant 
        recipients established for the facility pursuant to this 
        section. Provide, in writing a response to each significant 
        comment received during the public comment period. The written 
        response shall include an explanation of how the lead agency 
        has used or rejected significant comments of the Community 
        Working Group in its final decision.''.

SEC. 106. MULTIPLE SOURCES OF RISK DEMONSTRATION PROJECTS.

    Section 117 of the Act (42 U.S.C. 9617) is amended by adding after 
subsection (j) (as added by this Act) the following new subsection:
    ``(k) Multiple Sources of Risk Demonstration Projects.--
            ``(1) In general.--The Administrator shall select at least 
        10 demonstration projects to be implemented over a five year 
        period, relating to the identification, assessment, management 
        of, and response to, multiple sources of risk in and around 
        designated facilities. These demonstration projects will 
        examine various approaches to protect communities exposed to 
        such multiple sources of risk. The Administrator shall 
        promulgate regulations that set forth the criteria by which 
        demonstration projects will be selected.
            ``(2) Additional health benefits.--In the course of 
        conducting these demonstration projects, if a distinct pattern 
        of adverse health effects is identified in the surrounding 
        community, the Administrator shall consider the provision of 
        additional health benefits to the affected community, in an 
        effort to improve community health and welfare. Additional 
        benefits may include services such as consultations on health 
        information and health screening, the kind and availability of 
        which will be set forth in regulations promulgated by the 
        Administrator. These benefits shall not duplicate any 
        activities already undertaken at those facilities by the Agency 
        for Toxic Substances and Disease Registry under section 104(i) 
        of this Act.
            ``(3) Multiple sources of risk.--For the purposes of this 
        section, the term ``multiple sources of risk'' means--
                    ``(A) health risks from the existence of and 
                exposure to hazardous substances in the vicinity of a 
                facility for which a response action under this Act is 
                considered, which may present risks to persons who are 
                also at risk due to conditions at such a facility; or
                    ``(B) health risks from releases or threatened 
                releases of a hazardous substance, pollutant or 
                contaminant from facilities, permitted or otherwise, in 
                the vicinity of a facility for which a response action 
                under this Act is being considered, which may present 
                risks to persons who are also at risk due to the 
                specific facility for which a response action is being 
                considered.
            ``(4) Consistency with designation of empowerment zones.--
        The Administrator shall, to the maximum extent practicable, 
        select locations for conducting demonstration projects under 
        this subsection that coincide with areas which have been 
        identified as empowerment zones under the Omnibus Budget 
        Reconciliation Act of 1994 (Public Law 103-66).
            ``(5) Right to Petition.--Any person may petition the 
        Administrator to conduct a demonstration project under this 
        subsection at a specified location. Without regard to paragraph 
        (4), the Administrator may grant such a petition if--
                    ``(A) the petition sets out a reasonable basis in 
                fact that the population residing in the vicinity of 
                the specified location may be exposed to multiple 
                sources of risk as described in paragraph (3) and;
                    ``(B) the petition otherwise meets the requirements 
                of regulations promulgated by the Administrator which 
                set forth the criteria by which demonstration projects 
                will be selected.
            ``(6) Reviews of petitions.--The Administrator's 
        determinations and reviews of petitions under this subsection 
        are committed to the Administrator's unreviewable discretion.
            ``(7) Interagency coordination.--The Administrator shall 
        coordinate with other departments or agencies as necessary in 
        carrying out the responsibilities of this subsection.''.

SEC. 107. ASSESSING RISKS FROM MULTIPLE SOURCES.

    Section 105(a) of the Act (42 U.S.C. 9605(a)) is amended by adding 
after paragraph (10) the following new paragraph:
            ``(11) standards and procedures for assessing the risks, 
        and the cumulative impact of such risks, posed by the release 
        or threatened release of hazardous substances, or pollutants, 
        or contaminants from multiple sources of risk (as described in 
        section 117(l)(3) of this Act) in and around a facility, for 
        utilization in response actions authorized by this Act. The 
        demonstration projects authorized under subsection 117(l) of 
        this Act shall be used to help meet the requirements of this 
        subsection.''.

SEC. 108. MULTIPLE SOURCES OF RISK IN PRIORITY SETTING.

    Section 105(a)(8)(A) of the Act (42 U.S.C. 9605(a)(8)(A)) is 
amended by adding in the last sentence before ``and other appropriate 
factors'' the following ``the presence of multiple sources of risk 
(described in section 117(l)(3) of this Act) to affected 
communities.''.

SEC. 109. DISEASE REGISTRY AND MEDICAL CARE PROVIDERS.

    Section 104(i)(1) of the Act (42 U.S.C. 9604(i)(1)) is amended:
            (a) by amending subparagraph (A) to read as follows:
            ``(A) in cooperation with the States, for scientific 
        purposes and public health purposes, establish and maintain a 
        national registry of persons exposed to toxic substances;''; 
        and
            (b) by amending subparagraph (E) by striking ``admissions 
        to hospitals and other facilities and services operated or 
        provided by the Public Health Service'' and by inserting 
        ``referral to accredited medical care providers''.

SEC. 110. SUBSTANCE PROFILES.

    Section 104(i)(3) of the Act (42 U.S.C. 9604(i)(3)) is amended by 
amending the paragraph beginning ``Any toxicological profile or 
revision thereof'' to read as follows:
``Any toxicological profile or revision thereof shall reflect the 
Administrator of ATSDR's assessment of all relevant toxicological 
testing which has been peer reviewed. The profiles prepared under this 
paragraph shall be for those substances highest on the list of 
priorities under paragraph (2) for which profiles have not previously 
been prepared or for substances not on the listing but which have been 
found at non-National Priorities List facilities and which have been 
determined by ATSDR to be of critical health concern. Profiles required 
under this paragraph shall be revised and republished as necessary, 
based on scientific need. Such profiles shall be provided to the States 
and made available to other interested parties.''.

SEC. 111. DETERMINING HEALTH EFFECTS.

    Section 104(i)(5) of the Act (42 U.S.C. 9604(i)(5)) is amended--
            (a) in subparagraph (A) by--
                    (1) striking ``designed to determine the health 
                effects (and techniques for development of methods to 
                determine such health effects) of such substance'' and 
                inserting ``conducted directly or by means such as 
                cooperative agreements and grants with appropriate 
                public and nonprofit institutions. The research shall 
                be designed to determine the health effects (and 
                techniques for development of methods to determine such 
                health effects) of the substance''; and
                    (2) redesignating clause (iv) as ``(v)'', striking 
                ``and'' after clause (iii), and by inserting a new 
                clause (iv) to read as follows:
            ``(iv) laboratory and other studies which can lead to the 
        development of innovative techniques for predicting organ-
        specific, site-specific, and system-specific acute and chronic 
        toxicity; and''; and
            (b) striking subparagraph (D).

SEC. 112. PUBLIC HEALTH AND RELATED HEALTH ACTIVITIES AT NPL 
              FACILITIES.

    Section 104(i)(6) of the Act (42 U.S.C. 9604(i)(6)) is amended by--
            (a) amending subparagraph (A) to read as follows:
    ``(A) The Administrator of ATSDR shall perform a public health 
assessment or related health activity for each facility on the National 
Priorities List established under section 105 of this Act. The public 
health assessment or related health activity shall be completed for 
each facility proposed for inclusion on the National Priorities List 
not later than one year after the date of proposal for inclusion, 
including those facilities owned by any department, agency, or 
instrumentality of the United States.''; and
            (b) in subparagraph (H), striking ``health assessment'' and 
        ``such assessment'' each place that they appear and inserting 
        ``public health assessment or related health activity''.

SEC. 113. HEALTH STUDIES.

    Section 104(i)(7)(A) of the Act (42 U.S.C. 9604(i)(7)(A)) is 
amended to read as follows:
    ``(A) Whenever in the judgment of the Administrator of ATSDR it is 
appropriate on the basis of the results of a public health assessment 
or on the basis of other appropriate information, the Administrator of 
ATSDR shall conduct a human health study of exposure or other health 
effects for selected groups or individuals in order to determine the 
desirability of conducting full scale epidemiologic or other health 
studies of the entire exposed population.''.

SEC. 114. DISTRIBUTION OF MATERIALS TO HEALTH PROFESSIONALS AND MEDICAL 
              CENTERS.

    Section 104(i)(14) of the Act (42 U.S.C. 9604(i)(14)) is amended to 
read as follows:
    ``(14) In implementing this subsection and other health-related 
provisions of this Act in cooperation with the States, the 
Administrator of ATSDR shall--
            ``(A) assemble, develop as necessary, and distribute to the 
        States, medical colleges, physicians, nursing institutions, 
        nurses, and other health professionals and medical centers, 
        appropriate educational materials (including short courses) on 
        the medical surveillance, screening, and methods of prevention, 
        diagnosis and treatment of injury or disease related to 
        exposure to hazardous substances (giving priority to those 
        listed in paragraph (2)), through means the Administrator of 
        ATSDR considers appropriate; and
            ``(B) assemble, develop as necessary, and distribute to the 
        general public and to at-risk populations appropriate 
        educational materials and other information on human health 
        effects of hazardous substances.''.

SEC. 115. GRANT AWARDS/CONTRACTS/COMMUNITY ASSISTANCE ACTIVITIES.

    Section 104(i)(15) of the Act (42 U.S.C. 6904(i)(15)) is amended 
by--
            (a) inserting ``(A)'' before ``The activities'';
            (b) striking ``cooperative agreements with States (or 
        political subdivisions thereof)'' and inserting ``grants, 
        cooperative agreements, or contracts with States (or political 
        subdivisions thereof), other appropriate public authorities, 
        public or private institutions, colleges, and universities, and 
        professional associations,'';
            (c) in the second sentence, inserting ``public'' before 
        ``health assessments''; and
            (d) adding a new subparagraph as follows:
    ``(B) When a public health assessment or related health activity is 
conducted at a facility on, or a release being evaluated for inclusion 
on the National Priorities List, the Administrator of ATSDR may provide 
the assistance specified in this paragraph to public or private non-
profit entities, individuals, and community-based groups who may be 
affected by the release or threatened release of hazardous substances 
in the environment.''.

SEC. 116. PUBLIC HEALTH RECOMMENDATIONS IN REMEDIAL ACTIONS.

    Section 121(c) of the Act (42 U.S.C. 9621(c)) is amended by 
inserting after the phrase ``remedial action'' the second time it 
appears the following: ``, including public health recommendations and 
decisions resulting from activities under section 104(i),''.

SEC. 117. ATSDR NOTIFICATION.

    Section 122 of the Act (42 U.S.C. 9622) is amended by inserting 
after subsection (m) the following new subsection:
    ``(n) Notification of ATSDR.--When the Agency for Toxic Substances 
and Disease Registry (ATSDR) has conducted health related response 
activities pursuant to section 104(i) in response to a release or 
threatened release of any hazardous substance that is the subject of 
negotiations under this section, the President shall notify ATSDR of 
the negotiations and shall encourage the participation of ATSDR in the 
negotiations.''.

                         TITLE II--STATE ROLES

SEC. 201. STATE AUTHORITY.

    (a) Title I of the Act (42 U.S.C. 9600 et seq.) is amended by 
adding after section 126 the following new section:

``SEC. 127. STATE AUTHORITY.

    ``(a) State Program Authorization.--
            ``(1) In general.--At any time after the promulgation of 
        the criteria required by paragraph (3) of this subsection, a 
        State may apply to the Administrator to carry out, under its 
        own legal authorities, response actions and enforcement 
        activities at all facilities listed or proposed for listing on 
        the National Priorities List, or certain categories of 
        facilities listed or proposed for listing on the National 
        Priorities List, within the State. This section shall not apply 
        to any facility owned or operated by a department, agency, or 
        instrumentality of the United States listed on the National 
        Priorities List if, on the date of enactment of the Superfund 
        Reform Act of 1994, an interagency agreement for such facility 
        has been entered into pursuant to section 120(a)(2).
            ``(2) Requirements for authorization.--If the Administrator 
        determines that the State possesses the legal authority, 
        technical capability, and resources necessary to conduct 
        response actions and enforcement activities in a manner that is 
        substantially consistent with this Act and the National 
        Contingency Plan at the facilities listed or proposed for 
        listing on the National Priorities List for which it seeks 
        authorization, the Administrator, pursuant to a contract or 
        agreement entered into between the Administrator and the State, 
        may authorize the State to assume the responsibilities 
        established under this Act at all such facilities or categories 
        of facilities. Except as otherwise provided in this Act, such 
        responsibilities include, but are not limited to, responding to 
        a release or threatened release of a hazardous substance or 
        pollutant or contaminant; selecting response actions; expending 
        the Fund in amounts authorized by the Administrator to finance 
        response activities; and taking enforcement actions, including 
        cost recovery actions to recover Fund expenditures made by the 
        State. In an application for authorization, a State shall 
        acknowledge its responsibility to address all response actions 
        at the facilities for which it seeks authorization.
            ``(3) Promulgation of regulations.--The Administrator shall 
        issue regulations to determine a State's eligibility for 
        authorization and establish a process and criteria for 
        withdrawal of such an authorization. At a minimum, a State must 
        demonstrate--
                    ``(A) that it has a process for allocating 
                liability among potentially responsible parties that is 
                substantially consistent with section 122a of this Act 
                (as added by the Superfund Reform Act of 1994);
                    ``(B) that it provides for public participation in 
                a manner that is substantially consistent with section 
                117 of this Act and the National Contingency Plan;
                    ``(C) that it provides for selection and conduct of 
                response actions in a manner that is substantially 
                consistent with section 121 of this Act; and
                    ``(D) that it provides for notification of and 
                coordination with trustees in a manner that is 
                substantially consistent with section 104(b)(2) and 
                section 122(j)(1) of this Act.
    ``(b) Referral of Responsibilities.--
            ``(1) In general.--At any time after the promulgation of 
        the criteria required by paragraph (3) of this subsection, a 
        State may apply to the Administrator to carry out, under its 
        own legal authorities, response actions at a specific facility 
        or facilities listed or proposed for listing on the National 
        Priorities List, within the State.
            ``(2) Requirements for referral.--If the Administrator 
        determines that the State possesses the legal authority, 
        technical capability, and resources necessary to conduct 
        response actions and enforcement activities in a manner 
        substantially consistent with this Act and the National 
        Contingency Plan at the facilities listed or proposed for 
        listing on the National Priorities List facilities for which it 
        seeks referral, the Administrator, pursuant to a contract or 
        agreement entered into between the Administrator and the State, 
        may refer the responsibilities established under this Act to 
        the State for the facilities for which the State seeks 
        referral. Except as otherwise provided in this Act, such 
        responsibilities include, but are not limited to, responding to 
        a release or threatened release of a hazardous substance or 
        pollutant or contaminant; selecting response actions; expending 
        the Fund in amounts authorized by the Administrator to finance 
        response activities; and taking enforcement actions, including 
        cost recovery actions to recover Fund expenditures made by the 
        State.
            ``(3) Promulgation of regulations.--The Administrator shall 
        promulgate regulations to determine a State's eligibility for 
        referral and establish a process and criteria for withdrawal of 
        such referral. At a minimum, a State must demonstrate that it 
        meets the requirements described in subsection (a)(3).
    ``(c) Authorized Use of Fund.--At facilities listed on the National 
Priorities List for which a State is authorized under subsection (a), 
and at facilities listed on the National Priorities List which are 
referred to a State under subsection (b), the State shall be eligible 
for response action financing from the Fund. The Administrator shall 
ensure that all allocations of the Fund to the States for the purpose 
of undertaking site-specific response actions are based primarily on 
the relative risks to human health and the environment posed by the 
facilities eligible for funding. The amount of Fund financing for a 
State-selected response action at a facility listed on the National 
Priorities List shall--
            ``(1) take into account the number and financial viability 
        of parties identified as potentially liable for response costs 
        at such facility, and
            ``(2) be limited to the amount necessary to achieve a level 
        of response that is not more stringent than that required under 
        this Act.
A State also may obtain Fund financing to develop and enhance its 
capacity to undertake response actions and enforcement activities. The 
Administrator shall establish specific criteria for allocating 
expenditures from the Fund among States for the purposes of undertaking 
response actions and enforcement activities at referred and State-
authorized facilities, and building state capacities to undertake such 
response actions and enforcement activities. The Administrator shall 
develop a program and provide an appropriate level of Fund financing to 
assist Indian tribes in developing and enhancing their capabilities to 
conduct response actions and enforcement activities.
    ``(d) State Cost Share.--As provided in section 104(c)(3)(B) of 
this Act (as added by the Superfund Reform Act of 1994), a State shall 
pay or assure payment of 15 percent of the costs of all response 
actions and program support or other costs for which the State receives 
funds from the Fund under this section. An Indian tribe authorized to 
conduct a response actions and enforcement activities or to which 
facilities have been referred under this section is not subject to the 
cost-share requirement of this subsection.
    ``(e) Terms and Conditions; Cost recovery.--A contract or agreement 
for a State authorization or referral under this section is subject to 
such terms and conditions as the Administrator prescribes. The terms 
and conditions shall include requirements for periodic auditing and 
reporting of State expenditures from the Fund. The contract or 
agreement may cover a specific facility, a category of facilities, or 
all facilities listed or proposed to be listed on the National 
Priorities List in the State. The contract or agreement shall require 
the State to seek cost recovery, as contemplated by this Act, of all 
expenditures from the Fund. Five percent of the monies recovered by the 
State may be retained by the State for use in its hazardous substance 
response program, and the remainder shall be returned to the Fund. 
Before making further allocations from the Fund to any State, the 
Administrator shall take into consideration the effectiveness of the 
State's enforcement program and cost recovery efforts.
    ``(f) Enforcement of Agreements.--If the Administrator enters into 
a contract or agreement with a State pursuant to this section, and the 
State fails to comply with any terms and conditions of the contract or 
agreement, the Administrator, after providing sixty days notice, may 
withdraw the State authorization or referral, or seek in the 
appropriate Federal district court to enforce the contract or agreement 
to recover any funds advanced or any costs incurred because of the 
breach of the contract or agreement by the State.
    ``(g) More Stringent State Standards.--Under either an 
authorization or referral, a State may select a response action that 
achieves a level of cleanup that is more stringent than required under 
section 121(d) of this Act if the State agrees to pay for the 
incremental increase in response cost attributable to achieving the 
more stringent cleanup level. Neither the Fund nor any party liable for 
response costs shall incur costs in excess of those necessary to 
achieve a level of cleanup required under section 121(d) of this Act.
    ``(h) Opportnity for Public Comment.--The Administrator shall make 
available, for public review and comment, applications for 
authorization under subsection (a) and applications for referral under 
subsection (b). The Administrator shall not approve or withdraw 
authorization or referral from a State unless the Administrator 
notifies the State, and makes public, in writing, the reasons for such 
approval or withdrawal.
    ``(i) Periodic Review of Authorized State Programs and Referrals.--
The Administrator shall conduct a periodic review of authorized State 
programs and referrals to determine, among other things, whether--
            ``(1) the response actions were selected and conducted in a 
        manner that was substantially consistent with this Act, the 
        National Contingency Plan, and the contract or agreement 
        between the Administrator and the State;
            ``(2) the State response costs financed by Fund 
        expenditures were incurred in the manner agreed to by the 
        State, in accordance with the contract or agreement between the 
        Administrator and the State; and
            ``(3) the State's cost recovery efforts and other 
        enforcement efforts were conducted in accordance with the 
        contract or agreement between the Administrator and the State.
The Administrator, in consultation with the States, shall develop 
specific criteria for periodic reviews of authorized State programs and 
referrals. The Administrator shall establish a mechanism to make the 
periodic State reviews available to the public.
    ``(j) Modification of Response.--At a facility for which a State 
selects a response action under an authorization or a referral, the 
State shall afford the opportunity for public participation in a manner 
that is substantially consistent with the requirements of section 
117(f)-(i) of this Act, and shall give notice of and a copy of the 
proposed plan for response action to the Administrator. The State also 
shall give prompt written notice and a copy of the final decision in 
selecting the response action to the Administrator. Within 90 days from 
the date of receipt of such notice and final response action decision 
from the State, the Administrator may issue a notice of a request to 
modify the State-selected remedy. The Administrator's notice shall be 
in writing and shall set forth the basis for the Administrator's 
position, and the final date for responding to the Administrator's 
request, which shall be no less than 90 days from the date of the 
notice. If the State's response does not resolve the Administrator's 
concerns to the Administrator's satisfaction, the Administrator may 
withhold the distribution of Fund monies for the selected response 
action or may withdraw all or part of the State's authorization or 
referral.
    ``(k) Effect of Section.--The President shall retain the authority 
to take response actions at facilities listed or proposed for listing 
on the National Priorities List that are not being addressed by a State 
under an authorization or referral pursuant to this section. At 
facilities listed or proposed for listing on the National Priorities 
List that are being addressed by a State under either an authorization 
or a referral, the President may take response actions that the 
President determines necessary to protect human health or the 
environment, if the State fails, after a request by the Administrator 
to take such response actions in a timely manner. A State does not have 
the authority, except pursuant to this section, to take or order a 
response action, or any other action relating to releases or threatened 
releases, at any facility listed or proposed for listing on the 
National Priorities List. This section does not affect the authority of 
the United States under this Act to seek cost recovery for costs 
incurred by the United States.''.
    (b) Transition and Conforming Amendments.--
            (1) Sections 104(c)(5), 104(c)(7), 104(d)(1) and 104(d)(2) 
        of the Act are each amended by inserting after the heading in 
        each paragraph the following--``This paragraph applies only to 
        response actions for which a Record of Decision or other 
        decision document is signed before the date of enactment of the 
        Superfund Reform Act of 1994 and response actions covered by a 
        contract or agreement for which a State has selected, pursuant 
        to the option provided in subsection (c)(3)(C) (as added by the 
        Superfund Reform Act of 1994), the funding requirements set 
        forth in subsection (c)(3)(A) (as amended by Superfund Reform 
        Act of 1994).'';
            (2) Section 114(a) of the Act is amended by striking 
        ``Nothing'' and inserting ``Except as otherwise provided in 
        this Act, nothing'';
            (3) Section 121(f)(1) of the Act is amended by striking the 
        existing provisions and inserting ``The President may repeal, 
        no earlier than one year after the promulgation of final 
        regulations under sections 127(a)(3) and 127(b)(3), the 
        regulations issued under this paragraph prior to the date of 
        enactment of the Superfund Reform Act of 1994.'';
            (4) Section 121(f)(2) of the Act is amended by--
                    (A) striking ``legally applicable or relevant and 
                appropriate'' from the second sentence of subparagraph 
                (A); and
                    (B) striking ``subsection (d)(4)'' from the second 
                sentence of subparagraph (A) and inserting ``subsection 
                (d)(5)(C)'';
            (5) Section 121(f)(3) of the Act is amended by--
                    (A) striking ``legally applicable or relevant and 
                appropriate'' from the second sentence of subparagraph 
                (A); and
                    (B) striking ``subsection (d)(4)'' from the second 
                sentence of subparagraph (A) and inserting ``subsection 
                (d)(5)(C)''; and
            (6) Section 302(d) of the Act is amended by striking 
        ``Nothing'' and inserting ``Except as otherwise provided in 
        this Act, nothing''.

SEC. 202. TRANSFER OF AUTHORITIES.

    Section 120(g) of the Act (42 U.S.C. 9620(g)) is amended by adding, 
after ``the Environmental Protection Agency,'' the phrase ``and except 
as provided in section 127,''.

SEC. 203. STATE ROLE IN DETERMINATION OF REMEDIAL ACTION TAKEN.

    Section 120(h)(3) of the Act (42 U.S.C. 9620(h)(3)) is amended by 
adding at the end thereof the following: ``If the property being 
transferred is part of a facility subject to a State authorization or a 
referral under section 127, all demonstrations required by this 
paragraph to be made to the Administrator shall be made to the 
appropriate State official.''.

SEC. 204. STATE ASSURANCES.

    Section 104(c)(3) of the Act (42 U.S.C. 9604(c)(3)) is amended by--
            (a) in the beginning of the paragraph after ``(3)'' 
        inserting ``State cost shares for response actions and programs 
        for which Superfund funds may be allocated under this section 
        or section 127 shall be as follows--'';
            (b) striking ``The'' before ``President'' and inserting 
        ``(A) For all remedial actions for which a Record of Decision 
        is signed before the date of enactment of the Superfund Reform 
        Act of 1994, the'';
            (c) redesignating subparagraphs (A), (B) and (C) of 
        existing section 104(c)(3) as subparagraphs (1), (2) and (3) 
        respectively; by striking ``(i)'', wherever it appears and 
        inserting ``(I)''; and striking ``(ii)'' wherever it appears 
        and inserting ``(II)'';
            (d) adding a new subparagraph (B) as follows--
    ``(B) Subject to the provisions of subparagraph (C), for the costs 
of all response actions for which a Record of Decision or other 
decision document is signed after the date that is one year after the 
effective date of final regulations promulgated under section 127(a)(3) 
and section 127(b)(3), and for all program or other costs for which 
Fund money may be allocated to the State pursuant to this section or 
section 127, the President shall not provide or authorize funding from 
the Fund unless the State first enters into a contract or agreement 
with the President providing assurances deemed adequate by the 
President that the State will pay or assure payment of 15 percentum of 
all such costs as required by section 127(d). The Administrator may 
provide funding authorized under this paragraph for a one-year or other 
period for all costs and facilities in a State; in that event, the 
State cost share requirement set forth above shall apply to all costs 
covered by such period.''; and
            (e) adding a new subparagraph (C) as follows:
    ``(C) Each State shall have the option of receiving funding for all 
response action costs and program or other costs for which funding is 
authorized under this section or section 127 pursuant to either 
subparagraph (A) or subparagraph (B) of this paragraph. The option 
selected by the State shall apply to all contracts and agreements 
signed pursuant to this section or section 127.''.

SEC. 205. SITING.

    Section 104(c)(9) of the Act (42 U.S.C. 9604(c)(9)) is amended to 
read as follows:
    ``(9) Siting.--Effective one year after the date of enactment of 
the Superfund Reform Act of 1994, the President shall not provide any 
remedial actions pursuant to this section unless the State in which the 
release occurs submits a report describing its plans for adequate 
disposal capacity for hazardous wastes, in accordance with guidelines 
issued by the Administrator.''.

SEC. 206. THE NATIONAL PRIORITIES LIST.

    (a) Section 105(a)(8)(B) of the Act (42 U.S.C. 9605(a)(8)(B)) is 
amended by striking ``as part of the plan'', and by inserting before 
``Within'' the sentence ``The National Priorities List, and any 
modifications to the National Priorities List, may be adopted 
administratively, and without rulemaking.''.
    (b) Section 105(a)(8) of the Act (42 U.S.C. 9605(a)(8)) is amended 
by adding after subparagraph (B) the following new subparagraph:
            ``(C) before determining that a facility is to be listed on 
        the National Priorities List, the Administrator shall publish a 
        notice proposing the facility for listing on the National 
        Priorities List and shall provide an opportunity for public 
        comment. Public notice and opportunity for comment also shall 
        be provided before a decision by the Administrator to remove a 
        facility from the National Priorities List. The Administrator 
        shall establish a procedure under which any person may request 
        that a facility be considered for listing on, or removal from, 
        the National Priorities List. The Administrator has the sole 
        discretion to list or remove a facility on the National 
        Priorities List.''.

SEC. 207. THE STATE REGISTRY.

    Section 105(a)(8) of the Act (42 U.S.C. 9605(a)(8)) is amended by 
adding after subparagraph (C) (as added by this Act) a new 
subparagraph--
            ``(D) State registry.--Each State shall maintain and make 
        available to the public a list of facilities in the State that 
        are believed to present a current or potential hazard to human 
        health or the environment due to the release or threatened 
        release of hazardous substances or pollutants or contaminants. 
        Each State, in consultation with the Administrator and other 
        appropriate federal agencies, shall prepare such listing, and 
        shall, on an annual basis, publish the State Registry, 
        specifying the governmental agency addressing the facility, and 
        whether the facility is on the National Priorities List.''.

                     TITLE III--VOLUNTARY RESPONSE

SEC. 301. PURPOSES AND OBJECTIVES.

    The purposes and objectives of this title are to--
            (a) significantly increase the pace of response activities 
        at contaminated sites by promoting and encouraging the 
        development and expansion of State voluntary response programs, 
        and
            (b) benefit the public welfare by returning contaminated 
        sites to economically productive uses.

SEC. 302. STATE VOLUNTARY RESPONSE PROGRAM.

    Title I of the Act is amended by adding after section 127 (as added 
by this Act) the following new section:

``SEC. 128. VOLUNTARY RESPONSE PROGRAM.

    ``(a) In General.--The Administrator shall establish a program to 
provide technical and other assistance to the States to establish and 
expand voluntary response programs.
    ``(b) Voluntary Response Program.--The Administrator shall assist 
States to establish and administer a voluntary program that--
            ``(1) covers all eligible facilities, as defined in 
        subsection (c) of this section, within the State;
            ``(2) provides adequate opportunities for public 
        participation, including prior notice and opportunity for 
        comment, in selecting response actions;
            ``(3) provides opportunities for technical assistance for 
        voluntary response actions;
            ``(4) has the capability, through enforcement or other 
        mechanisms, of assuming the responsibility for completing a 
        response action if the current owner or prospective purchaser 
        fails or refuses to complete the necessary response, including 
        operation and maintenance; and
            ``(5) provides adequate oversight and has adequate 
        enforcement authorities to ensure that voluntary response 
        actions are completed in accordance with applicable Federal and 
        State laws, including applicable permit requirements and any 
        on-going operation and maintenance or long-term monitoring 
        activities.
    ``(c) Eligible Facilities.--
            ``(1) Except as provided in paragraph 2 of this subsection, 
        the term `eligible facility' means a facility or portion of a 
        facility where there has been a release or threat of release of 
        a hazardous substance, pollutant, or contaminant into the 
        environment.
            ``(2) The term `eligible facility' does not include any of 
        the following--
                    ``(A) a facility at which a remedial investigation 
                and feasibility study is underway, unless the 
                Administrator, in consultation with the State, 
                determines that it is appropriate to allow the response 
                action at such a facility to proceed under a voluntary 
                response program;
                    ``(B) a facility with respect to which a Record of 
                Decision has been issued under section 104 of this Act;
                    ``(C) a facility with respect to which a corrective 
                action permit condition or order has been proposed, 
                issued, modified, or amended to require implementation 
                of specific corrective measures under section 3004(u), 
                3004(v), or 3008(h) of the Solid Waste Disposal Act (42 
                U.S.C. 6924(u), 6924(v), or 6928(h)):
                    ``(D) a 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;
                    ``(E) a facility with respect to which an 
                administrative or judicial order or decree concerning 
                the response action has been issued, sought, or entered 
                into by the United States under this Act, the Solid 
                Waste Disposal Act (42 U.S.C. 6901 et seq.), the Atomic 
                Energy Act of 1954 (42 U.S.C. 2011 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. 300(f) et seq.); and
                    ``(F) a facility at which assistance for response 
                activities may be obtained under 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) A facility listed or proposed for listing on the 
        National Priorities List may be an ``eligible facility'' if--
                    ``(A) the facility is not a facility identified in 
                paragraph (2);
                    ``(B) the State in which the facility is located 
                has obtained a State authorization or referral under 
                section 127 of this Act; and
                    ``(C) the Administrator concurs in the State's 
                determination to address the facility under its 
                voluntary response program.
    ``(d) Annual Reporting.--The Administrator shall report, not later 
than 1 year after enactment of this Act and annually thereafter, to the 
Congress on the status of State voluntary response programs including--
            ``(1) whether the State's voluntary response program 
        continues to meet the criteria set forth in subsection (b) or 
        (c);
            ``(2) whether the State has adopted procedures to ensure 
        that all response actions completed or undertaken under the 
        State's voluntary response program comply with all applicable 
        Federal and State laws;
            ``(3) whether public participation opportunities have been 
        adequate during the process of selecting a response action for 
        each voluntary response;
            ``(4) whether voluntary response actions completed or 
        undertaken under the State voluntary response program have been 
        implemented in a manner that has reduced or eliminated risks to 
        human health and the environment to the satisfaction of the 
        State;
            ``(5) whether voluntary response actions completed or 
        undertaken under the State voluntary response program at 
        facilities listed or proposed for listing on the National 
        Priorities List were conducted in accordance with section 
        121(d) of this Act; and
            ``(6) whether a voluntary response action has increased 
        risk to human health or the environment, and whether a State 
        has taken timely and appropriate steps to reduce or eliminate 
        that risk to human health or the environment.
    ``(e) Statutory Construction.--This section is not intended--
            ``(1) to impose any requirement on a State voluntary 
        response program existing on or after the date of enactment of 
        this Act; or
            ``(2) to affect the liability of any person or response 
        authorities afforded under any law (including any regulation) 
        relating to environmental contamination, including this Act 
        (except as expressly provided in section 101(39)(D) (42 U.S.C. 
        9601(39)(D)), section 107(a)(5)(C) (42 U.S.C. 9607(a)(5)(C)), 
        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. 300(f) et. seq.).''.

SEC. 303. SITE CHARACTERIZATION PROGRAM.

    Title I of the Act is amended by adding after section 128 (as added 
by this Act) the following new section:

``SEC. 129 SITE CHARACTERIZATION TECHNICAL ASSISTANCE PROGRAM

    ``(a) In General.--The Administrator shall establish a program to 
provide technical and other assistance to municipalities to conduct 
site characterizations for facilities at which voluntary response 
actions are being conducted or are proposed to be conducted pursuant to 
a State voluntary response program that meets the requirements 
described in section 127.
    ``(b) Technical Assistance.--In carrying out the program 
established under subsection (a), the Administrator may provide 
technical and other assistance to a municipality to conduct a site 
characterization of a facility within the jurisdiction of the 
municipality at which voluntary response actions are being conducted or 
are proposed to be conducted. A municipality requesting technical and 
other assistance shall provide to the Administrator the following 
information--
            ``(1) describing the facility at which voluntary response 
        actions are being conducted or are proposed to be conducted;
            ``(2) demonstrating the financial need of the owner or 
        prospective purchaser of such a facility for funds to conduct a 
        site characterization;
            ``(3) analyzing the potential of the facility for creating 
        new businesses and employment opportunities on completion of 
        the response action;
            ``(4) estimating the fair market value of the site after 
        the proposed or ongoing response action, if a response action 
        is necessary;
            ``(5) regarding the economic viability and commercial 
        activity on real property--
                    ``(A) located within the immediate vicinity of the 
                affected site at the time of consideration of the 
                application; or
                    ``(B) 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;
            ``(6) regarding the potential of the facility for creating 
        new businesses and employment opportunities on completion of a 
        response action;
            ``(7) regarding whether the affected site is located in an 
        economically distressed community;
            ``(8) regarding the presence of multiple sources of risk as 
        described in section 117(k) of this Act; and
            ``(9) in such form, as the Administrator considers 
        appropriate to carry out the purposes of this section.''.

                   TITLE IV--LIABILITY AND ALLOCATION

SEC. 401. RESPONSE AUTHORITIES.

    (a) Section 104(e)(2) of the Act (42 U.S.C. 9604(e)(2)) is amended 
by deleting the word ``cleanup'' and inserting the phrase ``response 
action'', and inserting after subparagraph (C) the following:
                    ``(D) The nature and extent of all activities and 
                operations at such vessel or facility, including the 
                identity of any persons engaged in, responsible for, 
                controlling, or having the ability to control such 
                activities or operations.
                    ``(E) Information relating to the liability or 
                responsibility of any person to perform or pay for a 
                response action.
                    ``(F) Information that is otherwise relevant to 
                enforce the provisions of this Act.''.
    (b) Section 104(e)(7) of the Act (42 U.S.C. 9604(e)) is amended to 
read as follows:
            ``(7) Administrative subpoenas.--When it would assist in 
        the collection of information necessary or appropriate for the 
        purposes of implementing this Act, the President may by 
        subpoena require the attendance and testimony of witnesses and 
        the production of reports, papers, documents, answers to 
        questions, and other information that the President deems 
        necessary. Witnesses shall be paid the same fees and mileage 
        that are paid witnesses in the courts of the United States. In 
        the event of contumacy or failure or refusal of any person to 
        obey any such subpoena, any district court of the United States 
        in which venue is proper shall have jurisdiction to order any 
        such person to comply with such subpoena. Any failure to obey 
        such an order of the court is punishable by the court as a 
        contempt thereof.
            ``(8) Confidentiality of information.--
                    ``(A) Any records, reports, or information obtained 
                from any person under this section (including records, 
                reports or information obtained by representatives of 
                the President and records, reports or information 
                obtained pursuant to a contract, grant or other 
                agreement to perform work pursuant to this section, but 
                not including documents, reports, compilations, 
                summaries, or other analyses prepared by the President 
                or representatives of the President which reference or 
                incorporate information obtained under this section) 
                shall be available to the public, except as follows:
                            ``(i) Upon a showing satisfactory to the 
                        President (or the State, as the case may be) by 
                        any person that records, reports or 
                        information, or any particular part thereof 
                        (other than health or safety effects data), to 
                        which the President (or the State, as the case 
                        may be) or any officer, employee, or 
                        representative has access under this section if 
                        made public would divulge information entitled 
                        to protection under section 1905 of title 18 of 
                        the United States Code, such information or 
                        particular portion thereof shall be considered 
                        confidential in accordance with the purposes of 
                        that section, except that such record, report, 
                        document or information may be disclosed to 
                        other officers, employees, or authorized 
                        representatives of the United States (including 
                        government contractors) concerned with carrying 
                        out this chapter, or when relevant in any 
                        proceeding under this chapter, or, if such 
                        records, reports or information are obtained or 
                        submitted to the United States (or the State, 
                        as the case may be) pursuant to a contract, 
                        grant or other agreement to perform work 
                        pursuant to this section, to persons from whom 
                        the President seeks to recover costs pursuant 
                        to this Act.
                            ``(ii) This section does not require that 
                        information which is exempt from disclosure 
                        pursuant to section 522(a) of title 5 of the 
                        United States Code by reason of subsection 
                        (b)(5), subsection (b)(6), or subsection (b)(7) 
                        of such section, be available to the public, 
                        nor shall the disclosure of any such 
                        information pursuant to this section authorize 
                        disclosure to other parties or be deemed to 
                        waive any confidentiality privilege available 
                        to the President under any federal or State 
                        law.''.

SEC. 402. COMPLIANCE WITH ADMINISTRATIVE ORDERS.--

    (a) Section 106(a) of the Act (42 U.S.C. 9606(a)) is amended by--
            (1) inserting after the phrase ``hazardous substance'' the 
        phrase ``, or pollutant or contaminant''; and
            (2) by adding at the end thereof the following: ``The 
        President may amend such orders and issue additional orders, as 
        appropriate, without a subsequent finding of an imminent and 
        substantial endangerment, to complete response action 
        undertaken in response to a release or substantial threat of a 
        release, or to require additional response actions that are 
        necessary or appropriate.''.
    (b) Section 106(b)(1) of the Act (42 U.S.C. 9606(b)(1)) is amended
            (1) by striking out the phrase ``to enforce such order'', 
        and
            (2) by inserting before the period ``, or be required to 
        comply with such order, or both, even if another party has 
        complied, or is complying, with the terms of the same order or 
        another order pertaining to the same facility, release or 
        threatened release''; and
            (3) by inserting at the end of the paragraph the following 
        ``For purposes of this title, a `sufficient cause' requires--
                    ``(A) an objectively reasonable belief by the 
                person to whom the order is issued that the person is 
                not liable for any response costs under section 107 of 
                this title; or
                    ``(B) that the action to be performed pursuant to 
                the order is determined to be inconsistent with the 
                national contingency plan.
        The existence or results of an allocation process pursuant to 
        section 122a of this title shall not affect or constitute a 
        basis for a determination of `sufficient cause.'''.
    (c) Section 106(b)(2) is amended by moving the second sentence of 
subsection (b)(2)(A) and redesignating it as subsection (b)(4), and by 
striking the word ``paragraph'' in such newly designated subsection 
(b)(4) and replacing it with the word ``subsection''.
    (d) Section 106(b)(2)(A) of the Act (42 U.S.C. 9602(b)(2)(A) is 
amended by striking out the phrase ``completion of '', and inserting 
the phrase ``the President determines that such person has completed''.
    (e) Section 106(b)(2)(C) of the Act (42 U.S.C. 9606(b)(2)(C)) is 
amended by inserting after the words ``Subparagraph (D)'' the phrase'', 
or as may be authorized in a settlement entered into under section 122a 
of this title.''.

SEC. 403. LIMITATIONS TO LIABILITY FOR RESPONSE COSTS.

    Section 107 of the Act (42 U.S.C. 9607), is amended (a) in 
subsection (a) by inserting:
            ``(5) Notwithstanding paragraphs (1) through (4) of this 
        subsection, a person who does not impede the performance of 
        response actions or natural resource restoration shall not be 
        liable--
                    ``(A) to the extent liability is based solely on 
                subsection 107(a)(3) or 107(a)(4) of this Act, and the 
                arrangement for disposal, treatment, or transport for 
                disposal or treatment, or the acceptance for transport 
                for disposal or treatment, involved less than five 
                hundred pounds of municipal solid waste (MSW) or sewage 
                sludge as defined in sections 101(41) and 101(44) of 
                this Act, respectively, or such greater or lesser 
                amount as the Administrator may determine by 
                regulation;
                    ``(B) to the extent liability is based solely on 
                subsection 107(a)(3) or 107(a)(4) of this Act, and the 
                arrangement for disposal, treatment, or transport for 
                disposal or treatment, or the acceptance for transport 
                for disposal or treatment, involved less than ten 
                pounds or liters of materials containing hazardous 
                substances or pollutants or contaminants or such 
                greater or lesser amount as the Administrator may 
                determine by regulation, except where--
                            ``(i) the Administrator has determined that 
                        such material contributed significantly or 
                        could contribute to the costs of response at 
                        the facility; or
                            ``(ii) the person has failed to respond 
                        fully and completely to information requests by 
                        the United States, or has filed to certify 
                        that, on the basis of information within its 
                        possession, it qualifies for this exception;
                    ``(C) to the extent liability is based solely on 
                subsection 107(a)(1) of this Act, for a release or 
                threat of release from a facility, and the person is a 
                bona fide prospective purchaser of the facility as 
                defined in section 101(39);
                    ``(D) to the extent the liability of a department, 
                agency, or instrumentality of the United States is 
                based solely open section 107(a)(1) or (2) with regard 
                to a facility over which the department, agency, or 
                instrumentality exercised no regulatory or other 
                control over activities that directly or indirectly 
                resulted in a release or threat of release of a 
                hazardous substance, and--
                            ``(i) all activities that directly or 
                        indirectly resulted in a release or threat of a 
                        release of a hazardous substance during the 
                        period of ownership by the United States 
                        occurred prior to 1976;
                            ``(ii) the activities either directly or 
                        indirectly resulting in a release or a threat 
                        of a release of a hazardous substance at the 
                        facility were pursuant to a statutory 
                        authority;''
                            ``(iii) such department, agency, or 
                        instrumentality of the United States did not 
                        cause or contribute to the release or threat of 
                        release of hazardous substances or pollutants 
                        or contaminants at the facility; and
                            ``(iv) there are persons, other than the 
                        United States, who are both potentially liable 
                        for the release of hazardous substances or 
                        pollutants or contaminants at the facility and 
                        fully capable of performing or financing the 
                        response action at the facility; or
                    ``(E) to the extent the liability of a Federal or 
                State entity or municipality is based solely on its 
                ownership of a road, street, or other right of way or 
                other public transportation route over which hazardous 
                substances are transported, or the granting of a 
                license or permit to conduct business; or
                    ``(F) for more than 10 per centum of total response 
                costs at the facility, in aggregate, for all persons to 
                the extent their whose liability is based solely on 
                subsections 107(a)(3) or 107(a)(4) of this Act, and the 
                arrangement for disposal, treatment, or transport for 
                disposal or treatment, or the acceptance for transport 
                for disposal or treatment involved only municipal solid 
                waste (MSW) or sewage sludge as defined in sections 
                101(41) and 101(44), respectively, of this Act. Such 
                limitation on liability shall apply only--
                            ``(i) where either the acts or omissions 
                        giving rise to liability occurred before the 
                        date thirty-six months after enactment of this 
                        paragraph, or the person asserting the 
                        limitation institutes or participates in a 
                        qualified household hazardous waste collection 
                        program within the meaning of section 101(43); 
                        and
                            ``(ii) where the disposal did not occur on 
                        lands owned by the United States or any 
                        department, agency, or instrumentality thereof, 
                        or on any tribal land.''.
    (b) By inserting after subsection (m) the following:
    ``(n) Prospective Purchaser and Windfall Lien.--Where there are 
unrecovered response costs for which an owner of a facility is not 
liable by operation of subsection 107(a)(5)(C) of this Act, and a 
response action for which there are unrecovered costs inures to the 
benefit of such owner, the United States shall have a lien upon the 
facility for such unrecovered costs. Such lien--
            ``(1) shall not exceed the increase in fair market value of 
        the property attributable to the response action at the time of 
        a subsequent sale or other disposition of property;
            ``(2) shall be subject to the requirements for notice and 
        validity established in paragraph (3) of subsection (l) of this 
        section; and
            ``(3) shall continue until the earlier of satisfaction of 
        the lien, or recovery of all response costs incurred at the 
        facility.''.
    (c) Section 120 of the Act (42 U.S.C. 9620) is amended by inserting 
before the word ``Facilities'' in the title of the section the phrase 
``Entities And''.
    (d) Section 120(a)(1) of the Act (42 U.S.C. 9620(a)(1)) is 
amended--
            (1) after the word ``title'' in the first sentence by 
        inserting the phrase ``the right to contribution protection set 
        forth in sections 113 and 122, when such department, agency or 
        instrumentality resolves its share of liability under this Act 
        and liability for all federal civil and administrative 
        penalties and fines imposed under this Act, regardless of 
        whether such penalties and fines are punitive or coercive in 
        nature or are imposed for isolated or continuing violations.'';
            (2) by inserting the word ``other'' before the phrase 
        ``person or entity'' in the second sentence and by inserting 
        after the second sentence the following new sentence ``The 
        waiver of immunity in this section does not encompass uniquely 
        governmental actions such as--
                    ``(A) any actions of any department, agency or 
                instrumentality, except for official seizure of or 
                holding title to a facility, taken pursuant to Federal 
                authority to regulate the economy in preparation for, 
                during, or otherwise in connection with war through the 
                use and implementation of national priority rating 
                systems, national wage, profit and price incentives or 
                controls, or otherwise to mobilize the national economy 
                for war-related production; or
                    ``(B) any actions of any department, agency, or 
                instrumentality taken in response to a natural disaster 
                pursuant to the Emergency Flood Control Work Act (33 
                U.S.C. 701(n)), or the Disaster Relief Act of 1974 (42 
                U.S.C. 5121 et seq.).'';
    (e) Section 120(a)(4) of the Act (42 U.S.C. 9620(a)(4)) is 
amended--
            (1) by inserting ``currently'' before ``owned'' in the 
        first sentence;
            (2) by inserting after the word ``United States'' the 
        phrase ``in the following circumstances: (A)''; and
            (3) by inserting after the word ``List'' ``; (B) when such 
        facilities are included on the National Priorities List but are 
        specifically referred to the State by the Administrator 
        pursuant to the provisions of section 127 of this Act; or (C) 
        when such laws are part of an authorized program approved by 
        the Administrator pursuant to section 127 of this Act, and such 
        facilities are included on the National Priorities List and are 
        to be addressed by the State authorized program pursuant to 
        section 127 of this Act.
            ``Each department, agency, or instrumentality of the United 
        States shall be subject to State requirements, both substantive 
        and procedural, respecting liability for the costs of 
        responding to releases or threats of releases of hazardous 
        substances at non-federally owned facilities referred to the 
        State pursuant to section 127 of this Act, or such requirements 
        that are part of a State authorized program for non-federally 
        owned facilities being addressed under a State authorized 
        program pursuant to section 127 of this Act.'';
            (4) after the word ``preceding'' by replacing the word 
        ``sentence'' with ``sentences'';
            (5) at the end of the section by adding ``This waiver of 
        immunity for such facilities shall include all civil and 
        administrative penalties and fines imposed under such laws, 
        regardless of whether such penalties and fines are punitive or 
        coercive in nature or are imposed for isolated or continuing 
        violations. Neither the United States, nor any agent, employee 
        or officer thereof, shall be immune or exempt from any process 
        or sanction of any State or Federal Court with respect to the 
        enforcement of any appropriate relief under such laws, but the 
        United States shall be entitled to remove any action filed in 
        State court against any department, agency, instrumentality, 
        employee or officer of the United States to the appropriate 
        Federal district court. No agent, employee, or officer of the 
        United States shall be personally liable for any civil or 
        administrative penalty under any Federal or State law with 
        respect to any act or omission within the scope of the official 
        duties of the agent, employee, or officer. All funds collected 
        by a State from the Federal Government from penalties and fines 
        imposed for violation of any substantive or procedural 
        requirement referred to in this subsection shall be used by the 
        State only for projects designed to improve or protect the 
        environment or to defray the costs of environmental protection 
        or enforcement.''.
    (f) Section 120(j)(1) of the Act (42 U.S.C. 9620(j)(1)) is amended 
before the phrase ``with respect to the site'' in the second sentence 
by inserting ``or any State law applicable under section 120(a)(4)''.

SEC. 404 LIABILITY.

    (a) Section 107(a)(1) of the Act (42 U.S.C. 9607(a)(1)) is amended 
by striking the word ``and'' and inserting the word ``or'';
    (b) Section 107(a)(3) of the Act (42 U.S.C. 9607(a)(3)) is amended 
by striking out the phrase ``by any other party or entity,'';
    (c) Section 107(a)(4) of the Act (42 U.S.C. 9607(a)(4)) is 
amended--
            (1) by inserting a blank line before the phrase ``from 
        which there is a release'';
            (2) by moving the phrase ``from which there is a release'' 
        to the left margin;
            (3) inserting a comma after the phrase ``threatened 
        release''; and
    (d) Section 107(a)(4)(A) of the Act (42 U.S.C. 9607(a)(4)(A)) is 
amended by inserting the phrase ``, including direct costs, indirect 
costs, and costs of overseeing response actions conducted by private 
parties'' before the phrase ``incurred by the United States''.
    (e) Section 107(a)(4)(B) of the Act (42 U.S.C. 9607(a)(4)(B)) is 
amended--
            (1) by striking out the word ``other'' both times it 
        appears; and
            (2) by inserting the phrase ``other than the United States, 
        a State or an Indian tribe'' before the phrase ``consistent 
        with the national contingency plan''.
    (f) Section 107(c)(3) of the Act (42 U.S.C. 9607(c)(3)) is 
amended--
            (1) by inserting the phrase ``in addition to liability for 
        any response costs incurred by the United States as a result of 
        such failure to take proper action,'' after the word ``person'' 
        the second time it appears;
            (2) by striking out the phrase ``at least equal to, and not 
        more than'' and inserting the phrase ``up to'';
            (3) by striking out the comma after the word ``times''; and
            (4) by striking out the phrase ``any costs incurred by the 
        Fund as a result of such failure to take proper action'' and 
        inserting the phrase ``such response costs''.
    (g) Section 107 of the Act (42 U.S.C. 9607(a)(4)(B)) is amended by 
inserting the phrase ``, or pollutant or contaminant'' after the term 
``hazardous substance'' or ``hazardous substances'' wherever they 
appear in sections 107(a)(2), (3) and (4); 107(b); 107(c); 107(d)(1) 
and (2); 107(f)(1); 107(i); 107(j); and 107(k)(1)(B).

SEC. 405. CIVIL PROCEEDINGS.

    (a) Section 113(a) of the Act (42 U.S.C. 9613(a)) is amended--
            (1) by striking out the phrase ``upon application by any 
        interested person'', and inserting the phrase ``by any 
        adversely affected person through the filing of a petition for 
        review''; and
            (2) by striking out the phrase ``application shall be 
        made'', and inserting in lieu thereof ``petition shall be 
        filed''.
    (b) Section 113(b) of the Act (42 U.S.C. 9613(b)) is amended--
            (1) before ``without regard to the citizenship,'' by 
        inserting the phrase ``or in any manner limiting or affecting 
        the President's ability to carry out a response action under 
        this title,''; and
            (2) by inserting immediately after the first sentence the 
        following sentence--``Any action initiated in any state or 
        local court against the United States (or any department, 
        agency, or instrumentality, officer or employee thereof) 
        pursuant to or under any provision of or authorized by this 
        title may be removed by the United States to the appropriate 
        federal district court in accordance with section 1446 of title 
        18 of the United States Code.''.
    (c) Section 113(g) of the Act (42 U.S.C. 9613(g)) is amended by 
striking paragraphs (2) and (3) and inserting:
            ``(2) Actions for recovery of costs.--Except as provided in 
        paragraph (3) below, an initial action for recovery of costs 
        referred to in section 107 of this title must be commenced--
                    ``(A) for removal action, within three years after 
                completion of all removal action taken with respect to 
                the facility, including off-site disposal of any 
                removed materials; except that if physical on-site 
                construction of the remedial action is initiated within 
                three years after the completion of all removal action 
                taken with respect to the facility, costs incurred for 
                removal action may be recovered in the cost recovery 
                action brought under subparagraph (B); and
                    ``(B) for a remedial action, within six years after 
                initiation of physical on-site construction of the 
                remedial action.
        In any such action described in this subsection, the court 
        shall enter a declaratory judgment on liability for response 
        costs or damages that will be binding on any subsequent action 
        or actions to recover further response costs or damages. A 
        subsequent action or actions under section 107 of this title 
        for further response costs at the vessel or facility may be 
        maintained at any time during the response action, but must be 
        commenced no later than three years after the date of 
        completion of all response action. Except as otherwise provided 
        in this paragraph, an action may be commenced under section 107 
        of this title for recovery of costs at any time after such 
        costs have been incurred.
            ``(3) Contributing.--An action by a potentially responsible 
        party against another potentially responsible party for 
        recovery of any response costs or damages must be commenced 
        within the later of--
                    ``(A) the time limitations set forth in paragraph 
                (2) above, or
                    ``(B) where recovery is sought for costs or damages 
                paid pursuant to a judgment or settlement, three years 
                after--
                            ``(i) the date of judgment in any action 
                        under this Act for recovery of such costs or 
                        damages, or
                            ``(ii) the date of any administrative order 
                        or judicial settlement for recovery of the 
                        costs or damages paid or incurred pursuant to 
                        such a settlement.''.
    (d) Section 113(g) of the Act (42 U.S.C. 9613(g)) is amended by 
inserting the following at the end thereof:
            ``(4) Claims by the united states, states or indian 
        tribes.--Claims by the United States under section 106, and 
        claims by the United States, a State or Indian tribe under 
        section 107(a), of this Act shall not be deemed compulsory 
        counterclaims in an action against the United States, a State 
        or an Indian tribe seeking response costs, contribution, 
        damages, or any other claim by any person under this Act.''.
    (e) Section 113(j)(1) of the Act (42 U.S.C. 9613(j)(1) is amended--
            (1) before the phrase ``or ordered'' by inserting the 
        phrase ``or selected by the President pursuant to this Act,''; 
        and
            (2) after the phrase ``or ordered'' by inserting the phrase 
        ``or sought''.

SEC. 406. LIMITATIONS ON CONTRIBUTION ACTIONS.

    Section 113 of the Act (42 U.S.C. 9613) is amended (a) by amending 
subsection (f)(1) as follows--
            (1) by redesignating the paragraph as subparagraph 
        ``(1)(A),'';
            (2) before the phrase ``may seek contribution'' by 
        inserting the phrase ``who is liable or potentially liable 
        under section 107(a) of this title'';
            (3) by striking out the phrase ``during or following any 
        civil action under section 106 of this title or under section 
        107(a) of this title'', and inserting in lieu thereof the 
        phrase ``in a claim asserted under section 107(a)''; and
            (4) by deleting the period at the end of the first 
        sentence, and inserting ``except that there shall be no right 
        of contribution where--
                    ``(i) the person asserting the right of 
                contribution has waived such rights in a settlement 
                pursuant to this Act;
                    ``(ii) the person from whom contribution is sought 
                is liable solely under section 107(a)(3) of this Act, 
                and contributed less than ten pounds or ten liters of 
                material containing hazardous substances at the 
                facility, or such greater or lesser amount as the 
                Administrator may determine by regulation;
                    ``(iii) the person from whom contribution is sought 
                has entered into a final settlement with the United 
                States pursuant to section 122(g).;
            (5) before the phrase ``this section and the Federal 
        Rules'' by inserting the phrase ``section 107(a),''; and
            (6) by striking out the sentence ``Nothing in this 
        subsection shall diminish the right of any person to bring an 
        action for contribution in the absence of a civil action under 
        section 106 of this title or section 107 of this title.''.
    (b) By inserting after subparagraph (1)(A) the following 
subparagraph--
            ``(B) Any person who commences an action for contribution 
        against a person who is not liable by operation of subsection 
        107(a)(5) of this Act, or against a person who is protected 
        from suits in contribution by this section or by a settlement 
        with the United States, shall be liable to the person against 
        whom the claim of contribution is brought for all reasonable 
        costs of defending against the claim, including all reasonable 
        attorney's and expert witness fees.''.
    (c) Section 113(f) of the Act (42 U.S.C. 9613(f)) is amended by 
striking out paragraph (2), and inserting the following:
            ``(2) Settlement.--A person that has resolved its liability 
        to the United States in an administrative or judicially 
        approved settlement shall not be liable for claims by other 
        persons regarding response actions, response costs or damages 
        addressed in the settlement. A person that has resolved its 
        liability to a State in an administrative or judicially 
        approved settlement shall not be liable for claims by persons 
        other than the United States regarding response costs or 
        damages addressed in the settlement for which the State has a 
        claim under this title. Such settlement does not discharge any 
        other potentially responsible persons unless its terms so 
        provide, but it reduces the potential liability of such other 
        persons by the amount of the settlement. The protection 
        afforded by this section shall include protection against 
        contribution claims and all other types of claims, under 
        Federal or State law, that may be asserted against the settling 
        party for recovery of response costs or damages incurred or 
        paid by another person, if such costs or damages are addressed 
        in the settlement, but shall not include protection against 
        claims based on contractual indemnification or other express 
        contractual agreements to pay such costs or damages.''.

SEC. 407. SCOPE OF RULEMAKING AUTHORITY.

    Section 115 of the Act (42 U.S.C. 9615), is amended by 
redesignating the text of the section as subsection ``(a)'' and adding 
a new subsection:
    ``(b) The authority conferred by this section includes, without 
limitation, authority to promulgate legislative regulations to define 
the terms and scope of sections 101 through 405 of this Act, inclusive.
    ``(c) This section confirms, without limitation, authority to 
promulgate regulations to define the terms of this Act as they apply to 
lenders and other financial services providers, and property 
custodians, trustees, and other fiduciaries.''.

SEC. 408. ENHANCEMENT OF SETTLEMENT AUTHORITIES.

    Section 122 of the Act (42 U.S.C. 9622), is amended--
            (a) by striking out subparagraph (e)(3);
            (b) by redesignating subparagraphs (e) (4) and (5) as 
        subparagraphs (e) (3) and (4), respectively;
            (c) by redesignating subparagraph (e)(6) as a new section 
        122(o) and by amending redesignated section 122(n)--
                    (1) by deleting ``remedial investigation and 
                feasibility study'' and inserting in lieu thereof 
                ``response action''; and
                    (2) by deleting ``remedial action'' in both places 
                where it appears and inserting ``response action'';
            (d) by inserting at the end of section 122 the following--
    ``(p) Retention of Funds.--If, as part of any agreement under this 
Chapter, the President will be carrying out any action and the parties 
will be paying amounts to the President, the President may retain such 
amounts in interest bearing accounts, and use such amounts, together 
with accrued interest, for purposes of carrying out the agreement.
    ``(q) Notwithstanding the limitations on review in section 113(h), 
and except as provided in subsection (g) of this section, a person 
whose claim for response costs or contribution is limited as a result 
of contribution protection afforded by an administrative settlement 
under this section may challenge the cost recovery component of such 
settlement only by filing a complaint against the Administrator in the 
United States District Court within 60 days after such settlement 
becomes final. Venue shall lie in the district in which the appropriate 
Regional Administrator has her principal office. Any review of an 
administrative settlement shall be limited to the administrative 
record, and the settlement shall be upheld unless the objecting party 
can demonstrate on that record that the decision of the President to 
enter into the administrative settlement was arbitrary, capricious, or 
otherwise not in accordance with law.''.
            (e) by deleting subsection (f)(1) and inserting in lieu 
        thereof:
            ``(1) Final covenants.--The President shall offer 
        potentially responsible parties who enter into settlement 
        agreements otherwise acceptable to the United States a final 
        covenant not to sue concerning any liability to the United 
        States under this Act, including a covenant with respect to 
        future liability, for response actions or response costs, 
        provided that--
                    ``(A) the settling party agrees to perform, or 
                there are other adequate assurances of the performance 
                of, a final remedial action for the release or threat 
                of release that is the subject of the settlement;
                    ``(B) The settlement agreement has been reached 
                prior to the commencement of litigation against the 
                settling party under section 106 or 107 of this Act 
                with respect to this facility;
                    ``(C) The settling party waives all contribution 
                rights against other potentially responsible parties at 
                the facility; and
                    ``(D) The settling party pays premium that 
                compensates for the risks of remedy failure; future 
                liability resulting from unknown conditions; 
                unanticipated increases in the cost of any uncompleted 
                response action, unless the settling party is 
                performing the response action; and the United States' 
                litigation risk with respect to persons who have not 
                resolved their liability to the United States under 
                this Act, unless all parties have settled their 
                liability to the United States, or the settlement 
                covers 100 percent of the United States' response 
                costs. The President shall have sole discretion to 
                determine the appropriate amount of any such premium, 
                and such determinations are committed to the 
                President's discretion. The President has discretion to 
                waive or reduce the premium payment for persons who 
                demonstrate an inability to pay such a premium.
            ``(2) Discretionary covenants.--For all other settlements 
        under this title, the President may, in his discretion, provide 
        any person with a covenant not to sue concerning any liability 
        to the United States under this title, if the covenant not to 
        sue is in the public interest. The President may include any 
        conditions in such covenant not to sue, including but not 
        limited to the additional condition referred to in paragraph 
        (5) of this subsection. In determining whether such conditions 
        or covenants are in the public interest, the President shall 
        consider the effectiveness and reliability of the response 
        action, the nature of the risks remaining at the facility, the 
        strength of evidence, the likelihood of cost recovery, the 
        reliability of any response action or actions to restore, 
        replace or acquire the equivalent of injured natural resources, 
        and any other factors relevant to the protection of human 
        health, welfare, and the environment.'';
            (f) by striking out the word ``remedial'', wherever it 
        appears in paragraph (f)(2), and inserting the word 
        ``response'';
            (g) by deleting paragraphs (f)(3) and (f)(4);
            (h) by redesignating existing paragraphs (f)(2), (f)(5) and 
        (f)(6) as paragraphs (f)(3), (f)(4), and (f)(5), respectively;
            (i) in redesignated subparagraph (f)(5)(A)--
                    (1) by striking out the word ``remedial'', and 
                inserting in lieu thereof the word ``response'';
                    (2) by deleting ``paragraph (2)'' in the first 
                clause of the first sentence and inserting ``paragraph 
                (1) or (3)'' in lieu thereof; and
                    (3) by deleting ``de minimis settlements'' and 
                inserting ``de minimis and other expedited settlements 
                pursuant to subsection (g) of this section'' in lieu 
                thereof;
                    (4) by striking the phrase ``the President 
                certifies under paragraph (3) that remedial action has 
                been completed at the facility concerned'', and 
                inserting in lieu thereof the phrase ``that the 
                response action that is the subject of the settlement 
                agreement is selected''.
            (j) by amending redesignated subsection (f)(5)(B)--
                    (1) by striking ``In extraordinary circumstances, 
                the'' and inserting the word ``The'';
                    (2) by striking the phrase ``those referred to in 
                paragraph (4) and'';
                    (3) by inserting ``the agreement containing the 
                covenant not to sue provides for payment of a premium 
                to address possible remedy failure or any releases that 
                may result from unknown conditions, and'' before the 
                phrase ``the other terms''; and
                    (4) by inserting at the end the following ``The 
                President may, in his discretion, waive or reduce the 
                premium payment for persons who demonstrate an 
                inability to pay such a premium.''
            (k) by deleting paragraph (g)(1)(A) and inserting in lieu 
        thereof:
    ``(g) Expedited Final Settlement.--
            ``(1) Parties eligible for expedited settlement.--Wherever 
        practicable and in the public interest, and as provided in 
        section 122a of this title, the President will as promptly as 
        possible offer to reach a final administrative or judicial 
        settlement with potentially responsible parties who, in the 
        judgment of the President, meet one or more of the following 
        conditions for eligibility for an expedited settlement:
                    ``(A) the potentially responsible party's 
                individual contribution of hazardous substances at the 
                facility is de minimis. The contribution of hazardous 
                substance to a facility by a potentially responsible 
                party is de minimis if:
                            ``(i) the potentially responsible party's 
                        volumetric contribution of materials containing 
                        hazardous substances is minimal in comparison 
                        to the total volumetric contributions at the 
                        facility; such individual contribution is 
                        presumed to be minimal if it is one percent or 
                        less of the total volumetric contribution at 
                        the facility, unless the Administrator 
                        identifies a different threshold based on site-
                        specific factors; and
                            ``(ii) the potentially responsible party's 
                        hazardous substances do not present toxic or 
                        other hazardous effects that are significantly 
                        greater than those of other hazardous 
                        substances at the facility; or''
            (l) by inserting the following after subsection (g)(1)(B):
                    ``(C) The potentially responsible party's liability 
                is based solely on subsection 107(a)(3) or 107(a)(4) of 
                this title, and the arrangement for disposal, 
                treatment, or transport for disposal or treatment, or 
                the acceptance for transport for disposal or treatment, 
                involved only municipal solid waste (MSW) or sewage 
                sludge as defined in section 101(41) or 101(44), 
                respectively, of this Act. The Administrator may offer 
                to settle the liability of generators and transporters 
                of MSW or sewage sludge whose liability is limited 
                pursuant to section 107(a)(5)(A) of this title for up 
                to 10 percent of the total response costs at the 
                facility; or
                    ``(D) The potentially responsible party is a small 
                business or a municipality and has demonstrated to the 
                United States a limited ability to pay response costs. 
                For purposes of this provision--
                            ``(i) In the case of a small business, the 
                        President shall consider, to the extent that 
                        information is provided by the small business, 
                        the business' ability to pay for its total 
                        allocated share, and demonstrable constraints 
                        on its ability to raise revenues.
                            ``(ii) In the case of a municipal owner or 
                        operator, the President shall consider, to the 
                        extent that information is provided by the 
                        municipality, the following factors: (1) the 
                        municipality's general obligation bond rating 
                        and information about the most recent bond 
                        issue for which the rating was prepared; (2) 
                        the amount of total available funds (other than 
                        dedicated funds); (3) the amount of total 
                        operating revenues (other than obligated or 
                        encumbered revenues); (4) the amount of total 
                        expenses; (5) the amounts of total debt and 
                        debt service; (6) per capita income; and (7) 
                        real property values. A municipality may also 
                        submit for consideration by the President an 
                        evaluation of the potential impact of the 
                        settlement on essential services that the 
                        municipality must provide, and the feasibility 
                        of making delayed payments or payments over 
                        time. If a municipality asserts that it has 
                        additional environmental obligations besides 
                        its potential liability under this Act, then 
                        the municipality may create a list of the 
                        obligations, including an estimate of the costs 
                        of complying with such obligations. A 
                        municipality may establish an inability to pay 
                        through an affirmative showing that such 
                        payment of its liability under this Act would 
                        either (I) create a substantial demonstrable 
                        risk that the municipality would default on 
                        existing debt obligations, be forced into 
                        bankruptcy, be forced to dissolve, or be forced 
                        to make budgetary cutbacks that would 
                        substantially reduce current levels of 
                        protection of public health and safety, or (II) 
                        necessitate a violation of legal requirements 
                        or limitations of general applicability 
                        concerning the assumption and maintenance of 
                        fiscal municipal obligations.''.
            (m) by deleting paragraphs (2) and (3) of subsection (g) 
        and inserting in lieu thereof:
            ``(2) The determination of whether a party is eligible for 
        an expedited settlement shall be made on the basis of 
        information available to the President at the time the 
        settlement is negotiated. Such determination, and the 
        settlement, are committed to the President's unreviewable 
        discretion. If the President determines not to apply these 
        provisions for expedited settlements at a facility, the basis 
        for that determination must be explained in writing.
            ``(3) Additional factors relevant to municipalities.--In 
        any settlement with a municipality pursuant to this title, the 
        President may take additional equitable factors into account in 
        determining an appropriate settlement amount, including, 
        without limitation, the limited resources available to that 
        party, and any in-kind services that the party may provide to 
        support the response action at the facility. In considering the 
        value of in-kind services, the President shall consider the 
        fair market value of those services.''.
            (n) by striking in paragraph (g)(4) ``$500,000'' and 
        inserting ``$2,000,000''.
            (o) by striking paragraph (g)(5) and redesignating 
        paragraph (g)(6) as (g)(5).
            (p) by amending paragraph (h) by striking--
                    (1) the title, and inserting the phrase ``Authority 
                to settle claims for penalties, punitive damages and 
                cost recovery''; and
                    (2) by striking out the phrase ``settlement 
                authority''.
            (q) by amending paragraph (h)(1)--
                    (1) before the phrase ``costs incurred'' by 
                inserting the phrase ``past and future'';
                    (2) before the phrase ``by the United States 
                Government'' by inserting the phrase ``or that may be 
                incurred'';
                    (3) by inserting after the phrase ``if the claim 
                has not been referred to the Department of Justice for 
                further action'', the following: ``The head of any 
                department or agency with the authority to seek, or to 
                request the Attorney General to seek, civil or punitive 
                damages under this Act may settle claims for any such 
                penalties or damages which may otherwise be assessed in 
                civil administrative or judicial proceedings''; and by 
                striking out ``$500,000'', and inserting in lieu 
                thereof ``$2,000,000''.
            (r) by striking paragraph (h)(4).

SEC. 409. ALLOCATION PROCEDURES.

    The Act is amended by inserting following section 122:

``SEC. 122a ALLOCATION AT MULTI-PARTY FACILITIES.

    ``(a) Scope.--
            ``(1) Except as provided in paragraph (3) of this section, 
        for each non-federally owned facility listed on the National 
        Priorities List involving two or more potentially responsible 
        parties, the Administrator shall--
                    ``(A) initiate the allocation process established 
                under this section for any remedial action selected by 
                the President after the date of enactment of the 
                Superfund Reform Act of 1994, and
                    ``(B) initiate the allocation process established 
                in subsections (c)(2) through (d)(3) of this section 
                for any remedial action selected by the President prior 
                to the date of enactment of the Superfund Reform Act of 
                1994, when requested by any potentially responsible 
                party who has resolved its liability to the United 
                States with respect to the remedial action or is 
                performing the remedial action pursuant to an order 
                issued under section 106(a) of this title, to assist in 
                allocating shares among potentially responsible 
                parties. The allocation performed pursuant to this 
                subsection shall not be construed to require--
                            ``(i) payment of an orphan share pursuant 
                        to subsection (e) of this section; or
                            ``(ii) the conferral of reimbursement 
                        rights pursuant to subsection (h) of this 
                        section.
            ``(2) Except as provided in paragraph (3) of this section, 
        the Administrator may initiate the allocation process 
        established under this section with respect to any other 
        facility involving two or more potentially responsible parties, 
        as the Administrator deems appropriate.
            ``(3) The allocation process established under this section 
        shall not apply to any facility where--
                    ``(i) there has been a final settlement, decree or 
                order that determines all liability or allocated shares 
                of all potentially responsible parties with respect to 
                the facility; or
                    ``(ii) where response action is being carried out 
                by a State pursuant to referral or authorization under 
                section 104(k) of this title.
            ``(4) Nothing in this section limits or affects--
                    ``(A) the Administrator's obligation to perform an 
                allocation for facilities that have been the subject of 
                partial or expedited settlements;
                    ``(B) the ability of a potentially responsible 
                party at a facility to resolve its liability to the 
                United States or other parties at any time before 
                initiation or completion of the allocation process; or
                    ``(C) the validity, enforceability, finality or 
                merits of any judicial or administrative order, 
                judgment or decree issued, signed, lodged, or entered 
                with respect to liability under this Act, or authorizes 
                modification of any such order, judgment or decree.
    ``(b) Moratorium on Commencement or Continuation of Suits.--
            ``(1) No person may commence an action pursuant to section 
        107 of this Act regarding a response action for which an 
        allocation must be performed under subsection (a)(1)(A) of this 
        section, or for which the Administrator has initiated an 
        allocation under subsection (a)(1)(B) or (a)(2) of this 
        section, until 60 days after issuance of the allocator's report 
        under subsection (d)(1) of this section.
            ``(2) If an action under section 107 of this Act regarding 
        a response for which an allocation is to be performed under 
        this section is pending (A) upon date of enactment of the 
        Superfund Reform Act of 1994, or (B) upon initiation of an 
        allocation under subsection (a)(1)(B) or (a)(2) of this 
        section, the action shall be stayed until 60 days after the 
        issuance of an allocator's report, unless the court determines 
        that a stay will not result in a just and expeditious 
        resolution of the action.
            ``(3) Any applicable limitations period with respect to 
        actions subject to paragraph (1) shall be tolled from the 
        earlier of--
                    ``(A) the date of listing of the facility on the 
                National Priorities list; or
                    ``(B) the commencement of the allocation process 
                pursuant to this section, until 120 days after the 
                allocation report required by this section has been 
                provided to the parties to the allocation.
            ``(4) Nothing in this section shall in any way limit or 
        affect the President's authority to exercise the powers 
        conferred by sections 103, 104, 105, 106, or 122 of this title, 
        or to commence an action where there is a contemporaneous 
        filing of a judicial consent decree resolving a party's 
        liability; or to file a proof of claim or take other action in 
        a proceeding under title 11 of the United States Code.
            ``(5) The procedures established in this section are 
        intended to guide the exercise of settlement authority by the 
        United States, and shall not be construed to diminish or affect 
        the principles of retroactive, strict, joint and several 
        liability under this title.
    ``(c) Commencement of Allocation.--
            ``(1) Responsible party search.--At all facilities subject 
        to this section, the Administrator shall, as soon as 
        practicable but not later than 60 days after the earlier of the 
        commencement of the remedial investigation or the listing of 
        the facility on the National Priorities List, initiate a search 
        for potentially responsible parties, using its authorities 
        under section 104 of this title.
            ``(2) Notice to parties.--As soon as practicable after 
        receipt of sufficient information, but not more than eighteen 
        months after commencement of the remedial investigation, the 
        Administrator shall--
                    ``(A) notify those potentially responsible parties 
                who will be assigned shares in the allocation process 
                and notify the public, in accordance with section 
                117(d) of this title, of the list of potentially 
                responsible parties preliminarily identified by the 
                Administrator to be assigned shares in the allocation 
                process; and
                    ``(B) provide the notified potentially responsible 
                parties with a list of neutral parties who are not 
                employees of the United States and who the 
                Administrator determines, in his or her sole 
                discretion, are qualified to perform an allocation at 
                the facility.
            ``(3) Selection of allocator.--The Administrator shall 
        thereafter--
                    ``(A) acknowledge the parties' selection of an 
                allocator from the list, or select an allocator from 
                the list provided to the parties if the parties cannot 
                agree on a selection within 30 days of the notice;
                    ``(B) contract with the selected allocator for the 
                provision of allocation services; and
                    ``(C) make available all responses to information 
                requests, as well as other relevant information 
                concerning the facility and potentially responsible 
                parties, to the parties and to the allocator within 30 
                days of the appointment of the allocator. The 
                Administrator shall not make available any privileged 
                or confidential information, except as otherwise 
                authorized by law.
            ``(4) Proposed addition of parties.--
                    ``(A) For 60 days after information has been made 
                available pursuant to paragraph 3(C), the parties 
                identified by the Administrator and members of the 
                affected community shall have the opportunity to 
                identify and propose additional potentially responsible 
                parties or otherwise provide information relevant to 
                the facility or such potentially responsible parties. 
                This period may be extended by the Administrator for an 
                additional 30 days upon request of a party.
                    ``(B) Within 30 days after the end of the period 
                specified in paragraph (A) for identification of 
                additional parties, the Administrator shall issue a 
                final list of parties subject to the allocation 
                process, hereinafter the ``allocation parties''. The 
                Administrator shall include in the list of allocation 
                parties those parties identified pursuant to paragraph 
                (A) in the allocation process unless the Administrator 
                determines and explains in writing that there is not a 
                sufficient basis in law or fact to take enforcement 
                action with respect to those parties under this title, 
                or that they have entered into an expedited settlement 
                under section 122(g). The Administrator's determination 
                is to be based on the information available at the time 
                of the determination and is committed to the 
                Administrator's unreviewable discretion.
            ``(5) Role of federal agencies.--Federal departments, 
        agencies or instrumentalities that are identified as 
        potentially responsible parties shall be subject to, and be 
        entitled to the benefits of, the allocation process provided by 
        this section to the same extent as any other party.
            ``(6) Representation of the united states.--The 
        Administrator and the Attorney General shall be entitled to 
        review all documents and participate in any phase of the 
        allocation proceeding.
    ``(d) Allocation Determination.--
            ``(1) Settlement and allocation report.--Following issuance 
        of the list of allocation parties, the allocator may convene 
        the allocation parties for the purpose of facilitating 
        agreement concerning their shares. If the allocation parties do 
        not agree to a negotiated allocation of shares, the allocator 
        shall prepare a written report, with a nonbinding, equitable 
        allocation of percentage shares for the facility, and provide 
        such report to the allocation parties and the Administrator.
            ``(2) Information requests.--To assist in the allocation of 
        shares, the allocator may request information from the 
        allocation parties, and may make additional requests for 
        information at the request of any allocation party. The 
        allocator may request the Administrator to exercise any 
        information-gathering authority under this title where 
        necessary to assist in determining the allocation of shares.
            ``(3) Factors in the allocation.--Unless the allocation 
        parties agree to a negotiated allocation, the allocator shall 
        prepare a nonbinding, equitable allocation of percentage shares 
        for the facility based on the following factors:
                    ``(A) the amount of hazardous substances 
                contributed by each allocation party;
                    ``(B) the degree of toxicity of hazardous 
                substances contributed by each allocation party;
                    ``(C) the mobility of hazardous substances 
                contributed by each allocation party;
                    ``(D) the degree of involvement of each allocation 
                party in the generation, transportation, treatment, 
                storage, or disposal of the hazardous substance;
                    ``(E) the degree of care exercised by each 
                allocation party with respect to the hazardous 
                substance, taking into account the characteristics of 
                the hazardous substance;
                    ``(F) the cooperation of each allocation party in 
                contributing to the response action and in providing 
                complete and timely information during the allocation 
                process; and
                    ``(G) such other factors that the Administrator 
                determines are appropriate by published regulation or 
                guidance, including guidance with respect to the 
                identification of orphan shares pursuant to paragraph 
                (3) of this subsection
            ``(4) Identification of orphan shares.--The allocator may 
        determine that a percentage share for the facility is 
        specifically attributable to an ``orphan share''. The orphan 
        share may only consist of the following:
                    ``(A) shares attributable to hazardous substances 
                that the allocator determines, on the basis of 
                information presented, to be specifically attributable 
                to identified but insolvent or defunct responsible 
                parties who are not affiliated with any allocation 
                party;
                    ``(B) the difference between the aggregate shares 
                that the allocator determines, on the basis of the 
                information presented, are specifically attributable to 
                contributors of municipal solid waste subject to the 
                limitations in section 107(a)(5)(D) of this title, and 
                the share actually assumed by those parties in any 
                settlements with the United States pursuant to 
                subsection 122(g) of this title, including the fair 
                market value of in-kind services provided by a 
                municipality; and
                    ``(C) the difference between the aggregate share 
                that the allocator determines, on the basis of 
                information presented, is specifically attributable to 
                parties with a limited ability to pay response costs 
                and the share actually assumed by those parties in any 
                settlements with the United States pursuant to 
                subsection 122(b) of this title.
        The orphan share shall not include shares attributable to 
        hazardous substances that the allocator cannot attribute to any 
        identified party. Such shares shall be distributed among the 
        allocation parties.
    ``(e) Funding of Orphan Shares.--From funds available in the Fund 
in any given fiscal year, and without further appropriation action, the 
President shall make reimbursements from the Fund, to eligible parties 
for costs incurred and equitably attributable to orphan shares 
determined pursuant to this section, provided that Fund financing of 
orphan shares shall not exceed $300,000,000 in any fiscal year. 
Reimbursements made under this subsection shall be subject to such 
terms and conditions as the President may prescribe.
    ``(f) Timing.--The allocator shall provide the report required by 
subsection (d)(1) of this section to the allocation parties and the 
Administrator within 180 days of the issuance of the list of parties 
pursuant to subsection (c)(4)(B) of this section. Upon request, for 
good cause shown, the Administrator may grant the allocator additional 
time to complete the allocation, not to exceed 90 days.
    ``(g) Settlement Following Allocation.--
            ``(1) Obligations of the united states.--The President will 
        accept a timely offer of settlement from a party based on the 
        share determined by the allocator, if it includes appropriate 
        premia and other terms and conditions of settlement, unless the 
        Administrator, with the concurrence of the Attorney General of 
        the United States, determines that a settlement based on the 
        allocator's determinations would not be fair, reasonable, and 
        in the public interest. The Administrator and the Attorney 
        General shall seek to make any such determination within 60 
        days from the date of issuance of the allocator's report. The 
        determinations of the Administrator and the Attorney General 
        shall not be judicially reviewable.
            ``(2) If the Administrator and the Attorney General 
        determine not to settle on the basis of the allocation, they 
        shall provide the allocation parties and members of the 
        affected community with a written explanation of the 
        Administrator's determination. If the Administrator and the 
        Attorney General make such a determination, the parties who are 
        willing to settle on the basis of the allocation are entitled 
        to a consultation with an official appointed by the President, 
        to present any objections to the determination, within 60 days 
        after the determination.
            ``(3) Settlements based on allocated shares shall include--
                    ``(A) a waiver of contribution rights against all 
                parties who are potentially responsible parties for the 
                response action;
                    ``(B) covenants not to sue, consistent with the 
                provisions of section 122(f) of this title, and 
                provisions regarding performance or adequate assurance 
                of performance of response actions addressed in the 
                settlement;
                    ``(C) a premium that compensates for the United 
                States' litigation risk with respect to potentially 
                responsible parties who have not resolved their 
                liability to the United States, except that no such 
                premium shall apply if all parties settle or the 
                settlement covers one 100 percent of response costs;
                    ``(D) contribution protection, consistent with 
                sections 113(f) and 122(g) of this title, regarding 
                matters addressed in the settlement. Such settlement 
                does not discharge any of the other potentially 
                responsible parties unless its terms so provide, but it 
                reduces the potential liability of the others by the 
                amount of the settlement; and
                    ``(E) provisions through which the settling parties 
                shall receive reimbursement from the Fund for any 
                response costs incurred by such parties in excess of 
                the aggregate of their allocated share and any premia 
                required by the settlement. Such right to reimbursement 
                shall not be contingent on the United States' recovery 
                of response costs from any responsible person not a 
                party to any settlement with the United States.
            ``(4) The President shall report annually to Congress on 
        the administration of the allocation scheme, and provide 
        information comparing allocation results with actual 
        settlements at multiparty facilities.
            ``(5) The provisions of this section shall not apply to any 
        offer of settlement made after commencement of litigation by 
        the United States against the offering party under section 107 
        of this title.
    ``(h) Authorization of Reimbursement.--In any settlement in which a 
party agrees to perform response work in excess of its share, the 
Administrator shall have authority in entering the settlement to confer 
a right of reimbursement on the settling party pursuant to such 
procedures as the Administrator may prescribe.
    ``(i) Post-Settlement Litigation.--
            ``(1) In general.--The United States may commence an action 
        under section 107 against any person who has not resolved its 
        liability to the United States following allocation, on or 
        after 60 days following issuance of the allocator's report. In 
        any such action, the potentially responsible parties shall be 
        liable for all unrecovered response costs, including any 
        federally-funded orphan share identified in accordance with 
        subsection (d)(4). Defendants in any such action may implead 
        any allocation party who did not resolve its liability to the 
        United States. The Administrator and the Attorney General shall 
        issue guidelines to ensure that the relief sought against de 
        minimis parties under principles of joint and several liability 
        will not be grossly disproportionate to their contribution to 
        the facility. The application of such guidelines is committed 
        to the discretion of the Administrator and the Attorney 
        General.
            ``(2) In commencing any action under section 107 following 
        allocation, the Attorney General must certify, in the 
        complaint, that the United States has been unable to reach a 
        settlement that would be in the best interests of the United 
        States.
            ``(3) Admissibility of allocator's report.--The allocator's 
        report shall not be admissible in any court with respect to a 
        claim brought by or against the United States, except in its 
        capacity as a nonsettling potentially responsible party, or for 
        the determination of liability. The allocator's report, subject 
        to the rules and discretion of the court, may be admissible 
        solely for the purpose of assisting the court in making an 
        equitable allocation of response costs among the relative 
        shares of nonsettling liable parties.
            ``(4) Other authorities unaffected.--Nothing in this 
        section limits or in any way affects the exercise of the 
        President's authority pursuant to sections 103, 104, 105, or 
        106.
            ``(5) Costs.--
                    ``(A) The costs of implementing the allocation 
                procedure set forth in this section, including 
                reasonable fees and expenses of the allocator, shall be 
                considered necessary costs of response.
                    ``(B) The costs attributable to any funding of 
                orphan shares identified by the allocator pursuant to 
                subsection (d)(4) also shall be considered necessary 
                costs of response, and shall be recoverable from liable 
                parties who do not resolve their liability on the basis 
                of the allocation.
            ``(6) Rejection of share determination.--In any action by 
        the United States under this title, if the United States has 
        rejected an offer of settlement that is consistent with 
        subsections (g)(1) and (g)(3) of this section and was presented 
        to the United States prior to the commencement of the action, 
        the offeror shall be entitled to recover from the United States 
        the offeror's reasonable costs of defending the action after 
        the making of the offer, including reasonable attorneys' fees, 
        if the ultimate resolution of liability or allocation of costs 
        with respect to the offeror, taking into account all 
        settlements and reimbursements with respect to the facility 
        other than those attributable to insurance or indemnification, 
        is as or more favorable to the offeror than the offer based on 
        the allocation.
    ``(j) Procedures.--The Administrator shall further define the 
procedures of this section by regulation or guidance, after 
consultation with the Attorney General.''.

            TITLE V--REMEDY SELECTION AND CLEANUP STANDARDS

SEC. 501. PURPOSES AND OBJECTIVES.

    The purposes and objectives of this title are to--
            (a) ensure that remedial actions under the Act are 
        protective of human health and the environment;
            (b) provide consistent and equivalent protection to all 
        communities affected by facilities subject to remedial action; 
        and,
            (c) ensure that the national goals, national generic 
        cleanup levels, and the national risk protocol required by this 
        title are developed through a process based on substantial 
        public input and, where appropriate, on consensual 
        decisionmaking.

SEC. 502. CLEANUP STANDARDS AND LEVELS.

    Section 121(d)(1)-(2)(C)(i) of the Act (42 U.S.C. 9621(d)) is 
amended to read as follows:
    ``(d) Degree of Cleanup.--
            ``(1) Protection of human health and the environment.--A 
        remedial action selected under this section or otherwise 
        required or agreed to by the President under this Act shall be 
        protective of human health and the environment. In order to 
        provide consistent protection to all communities, the 
        Administrator shall promulgate national goals to be applied at 
        all facilities subject to remedial action under this Act.
            ``(2) Generic cleanup levels.--The Administrator shall 
        promulgate, as appropriate, national generic cleanup levels for 
        specific hazardous substances, pollutants, or contaminants, 
        based on the national goals established in paragraph (1). A 
        cleanup level shall--
                    ``(A) reflect reasonably anticipated future land 
                uses,
                    ``(B) reflect other variables which can be easily 
                measured at a facility and whose effects are 
                scientifically well-understood to vary on a site-
                specific basis, and
                    ``(C) represent concentration levels below which a 
                response action is not required.
            ``(3) Site-specific methods to establish cleanup levels.--
        Notwithstanding the promulgation of national generic cleanup 
        levels under subsection (d)(2) and nationally-approved generic 
        remedies under subsection (b)(4) of this section, the 
        Administrator may, as appropriate, rely on a site-specific risk 
        assessment to determine the proper level of cleanup at a 
        facility, based on the national goals established in paragraph 
        (1) and the reasonably anticipated future land uses at the 
        facility. This may occur if a national generic cleanup level 
        has not been developed or to account for particular 
        characteristics of a facility or its surroundings. In 
        establishing site-specific cleanup levels, the President shall 
        consider the views of the affected community in accordance with 
        section 117 of this Act.
            ``(4) Risk assessment.--The Administrator shall promulgate 
        a national risk protocol for conducting risk assessments based 
        on realistic assumptions. After promulgation, risk assessments 
        underlying the degree of cleanup and remedy selection processes 
        shall use the national risk protocol.
            ``(5) Federal and state laws.--
                    ``(A) A remedial action shall be required to comply 
                with the substantive requirements of--
                            ``(i) any standard, requirement, criterion, 
                        or limitation under any federal environmental 
                        or facility siting law that the President 
                        determines is suitable for application to the 
                        remedial action at the facility; and
                            ``(ii) any promulgated standard, 
                        requirement, criterion, or limitation under any 
                        state environmental law specifically addressing 
                        remedial action that is adopted for the purpose 
                        of protecting human health or the environment 
                        with the best available scientific evidence 
                        through a public process where such a law is 
                        more stringent than any such federal cleanup 
                        standard, requirement, criterion, or 
                        limitation, or the cleanup level determined in 
                        accordance with the requirements of this 
                        section.
                    ``(B) Procedural requirements of federal and state 
                standards, requirements, criteria, or limitations, 
                including but not limited to permitting requirements, 
                shall not apply to response actions conducted on-site. 
                In addition, compliance with such laws shall not be 
                required with respect to return, replacement, or 
                redisposal of contaminated media or residuals of 
                contaminated media into the same medium in or very near 
                existing areas of contamination on-site.
                    ``(C) The President may select a remedial action 
                meeting the requirements of paragraph (1) that does not 
                attain a level or standard of control at least 
                equivalent to the federal or State standards, 
                requirements, criteria, or limitations as required by 
                paragraph (A), if the President finds that--
                            ``(i) the remedial action selected is only 
                        part of a total remedial action that will 
                        attain such level or standard of control when 
                        completed;
                            ``(ii) compliance with such requirement at 
                        that facility will result in greater risk to 
                        human health and the environment than 
                        alternative options;
                            ``(iii) compliance with such requirements 
                        is technically impracticable from an 
                        engineering perspective;
                            ``(iv) a generic remedy under section 
                        (b)(4) has been selected for the facility;
                            ``(v) the remedial action selected will 
                        attain a standard of performance that is 
                        equivalent to that required under the standard, 
                        requirement, criterion, or limitation 
                        identified under (A)(i) and (A)(ii) through use 
                        of another approach;
                            ``(vi) with respect to a State standard, 
                        requirement, criterion, or limitation, the 
                        State has not consistently applied (or 
                        demonstrated the intention to consistently 
                        apply) the standard, requirement, criterion, or 
                        limitation in similar circumstances at other 
                        remedial actions within the State; or
                            ``(vii) in the case of a remedial action to 
                        be undertaken solely under section 104 using 
                        the Fund, a selection of a remedial action that 
                        attains such level or standard of control will 
                        not provide a balance between the need for 
                        protection of public health and welfare and the 
                        environment at the facility under 
                        consideration, and the availability of amounts 
                        from the Fund to respond to other facilities 
                        which present or may present a threat to public 
                        health or welfare or the environment, taking 
                        into consideration the relative immediacy of 
                        such threat.
                The President shall publish such findings, together 
                with an explanation and appropriate documentation.''.

SEC. 503. REMEDY SELECTION.

    Section 121(b) of the Act (42 U.S.C. 9621(b) is amended to read as 
follows:
    ``(b) General Rules.--
            ``(1) Selection of protective remedies.--Remedies selected 
        at individual facilities shall be protective of human health 
        and the environment. Whether a response action requires 
        remediation through treatment, containment, a combination of 
        treatment and containment, or other means, shall be determined 
        through the evaluation of remedial alternatives.
            ``(2) Land use.--In selecting a remedy, the President shall 
        take into account the reasonably anticipated future uses of 
        land at a facility as required by this Act.
            ``(3) Appropriate remedial action.--
                    ``(A) The President shall identify and select an 
                appropriate remedy utilizing treatment, containment, 
                other remedial measures, or any combination thereof, 
                that is protective of human health and the environment 
                and achieves the degree of cleanup determined under 
                section 121(d), taking into account the following 
                factors--
                            ``(i) the effectiveness of the remedy;
                            ``(ii) the long-term reliability of the 
                        remedy, that is, its capability to achieve 
                        long-term protection of human health and the 
                        environment;
                            ``(iii) any risk posed by the remedy to the 
                        affected community, to those engaged in the 
                        cleanup effort, and to the environment;
                            ``(iv) the acceptability of the remedy to 
                        the affected community; and
                            ``(v) the reasonableness of the cost of the 
                        remedy in relation to the preceding factors (i) 
                        and (iv).
                    ``(B) Innovative remedies.--If an otherwise 
                appropriate treatment remedy is available only at a 
                disproportionate cost and the President determines that 
                an appropriate treatment remedy is likely to become 
                available within a reasonable period of time, the 
                President may select an interim containment remedy. A 
                selected interim containment remedy shall include 
                adequate monitoring to ensure the continued integrity 
                of the containment system. If an appropriate treatment 
                remedy becomes available within that period of time, 
                that remedy shall be required.
                    ``(C) Hot spots.--In evaluating a facility for a 
                permanent containment remedy, if the President 
                determines, based on standard site investigation, that 
                a discrete area within a facility is a ``hot spot'' (as 
                defined in this paragraph), the President shall select 
                a remedy for the hot spot with a preference for 
                treatment, unless he determines, based on treatability 
                studies and other information, that no treatment 
                technology exists or such technology is only available 
                at a disproportionate cost. In such instances, the 
                President shall select an interim containment remedy 
                for a hot spot subject to adequate monitoring to ensure 
                its continued integrity and shall review the interim 
                containment remedy within five years to determine 
                whether an appropriate treatment remedy for the hot 
                spot is available. For purposes of this paragraph, the 
                term ``hot spot'' means a discrete area within a 
                facility that contains hazardous substances that are 
                highly toxic or highly mobile, cannot be reliably 
                contained, and present a significant risk to human 
                health or the environment should exposure occur.
            ``(4) Generic remedies.--In order to streamline the remedy 
        selection process, and to facilitate rapid voluntary action, 
        the President shall establish, taking into account the factors 
        enumerated in subsection (b)(3)(A), cost-effective generic 
        remedies for categories of facilities, and expedited procedures 
        that include community involvement for selecting generic 
        remedies at an individual facility. To be eligible for 
        selection at a facility, a generic remedy shall be protective 
        of human health and the environment at that facility. When 
        appropriate, the President may select a generic remedy without 
        considering alternative remedies.''.

SEC. 504. MISCELLANEOUS AMENDMENTS TO SECTION 121.

    (a) Section 121(c) of the Act (42 U.S.C. 9621(c)) is amended by 
striking out the word ``initiation'', and inserting in lieu thereof the 
phrase ``completion of all physical on-site construction''.
    (b) Section 121(d) of the Act is further amended by--
            (1) redesignating paragraph (2)(C)(ii) as paragraph 
        ``(6)(A)'';
            (2) redesignating paragraph (2)(C)(iii) as paragraph 
        ``(6)(B)'';
            (3) striking ``clauses (iii) and (iv)'' in redesignated 
        paragraph (6)(A) and inserting ``subparagraph (B)'';
            (4) striking paragraph (2)(C)(iv);
            (5) redesignating paragraph (3) as paragraph ``(7)'' and 
        amending it to read as follows:
    ``(7) In the case of any removal or remedial action involving the 
transfer of any hazardous substance or pollutant or contaminant off-
site, such hazardous substance or pollutant or contaminant and shall be 
transferred to a facility which is authorized under applicable Federal 
and State law to receive such hazardous substance or pollutant or 
contaminant and is in compliance with such applicable Federal and State 
law. Such substance or pollutant or contaminant may be transferred to a 
land disposal facility permitted under subtitle C of the Solid Waste 
Disposal Act only if the President determines that both of the 
following requirements are met:
            ``(A) The unit to which the hazardous substance or 
        pollutant or contaminant is transferred is not releasing any 
        hazardous waste, or constituent thereof, into the groundwater 
        or surface water or soil.
            ``(B) All such releases from other units at the facility 
        are being controlled by a corrective action program approved by 
        the Administrator under subtitle C of the Solid Waste Disposal 
        Act.
The President shall notify the owner or operator of such facility of 
determinations made under this paragraph.''; and
            (6) striking paragraph (4).
    (c) Section 121(e) of the Act (42 U.S.C. 9621(e)) is amended by--
            (1) in paragraph (1) inserting in the first sentence ``or 
        permit application'' before ``shall be required''; and by 
        adding at the end thereof the following: ``Furthermore, no 
        Federal, State or local permit or permit application shall be 
        required for one-site or off-site activities conducted under 
        section 311(b),''; and
            (2) striking paragraph (2).
    (d) Section 121(f) of the Act (42 U.S.C. 9621(f)) is amended by 
adding after paragraph (3) (as amended by this Act) the following new 
paragraph:
    ``(4) A State may enforce only those Federal or State legally 
applicable standards, requirements, criterion, or limitations to which 
the Administrator has determined the remedial action is required to 
conform under this Act. Where the parties agree, the consent decree may 
provide for administrative enforcement. Each consent decree shall also 
contain stipulated penalties for violations of the decree in an amount 
not to exceed $25,000 per day. Such stipulated penalties shall not be 
construed to impair or affect the authority of the court to order 
compliance with the specific terms of any such decree.''.

SEC. 505. RESPONSE AUTHORITIES.

    (a) Section 104(b)(1) of the Act (42 U.S.C. 9604(b)(1)) is amended 
by--
            (1) inserting ``actions,'' before ``studies'';
            (2) striking ``, to recover the costs thereof, and'' and 
        inserting ``or''; and
            (3) striking the ``.'' after ``Act'' and inserting ``and 
        shall be entitled to recover the costs thereof.''.
    (b) Section 104(j) of the Act (42 U.S.C. 9604(j)) is amended by--
            (1) in paragraph (1) by striking ``remedial'', and 
        inserting ``response'';
            (2) striking paragraph (2);
            (3) redesignating paragraph (3) as paragraph ``(2)'' and 
        striking ``estate'' and inserting ``property''; and
            (4) by inserting after paragraph (2) (as redesignated by 
        this Act) the following new paragraph:
    ``(4) Disposal Authority.--The President is authorized to dispose 
of any interest in real property acquired for use by the Administrator 
under this subsection by sale, exchange, donation or otherwise and any 
such interest in real property shall not be subject to any of the 
provisions of section 120 except the notice provisions of section 
120(h)(1). Any moneys received by the President pursuant to this 
subparagraph shall be deposited in the Fund.''.

SEC. 506. REMOVAL ACTIONS.

    (a) Section 104(c)(1) of the Act is amended in subparagraph (C) as 
follows:
            (1) strike ``$2,000,000'' and insert ``$6,000,000'';
            (2) strike ``12 months'' and insert ``three years''; and
            (3) strike ``consistent with the remedial action to be 
        taken'' and insert ``not inconsistent with any remedial action 
        that has been selected or is anticipated at the time of the 
        removal action.'';
    (b) Section 117 of the Act is amended by adding after subsection 
(k) (as added by this Act) the following new subsection:
    ``(1) Removal Actions.--Whenever the planning period for a removal 
action is expected to be greater than six months, the Administrator 
shall provide the community with notice of the anticipated removal 
action and a public comment period of no less than thirty days.''.

SEC. 507. TRANSITION.

    The provisions of this title shall become effective on the date of 
enactment of this Act and shall apply to all response actions for which 
a Record of Decision or other decision document is signed after the 
date of enactment of the Act.

                        TITLE VI--MISCELLANEOUS

SEC. 601. INTERAGENCY AGREEMENTS AT MIXED OWNERSHIP AND MIXED 
              RESPONSIBILITY FACILITIES.

    Section 120(e) of the Act (42 U.S.C. 9620(e)) is amended by--
            (a) inserting after paragraph (3) the following new 
        paragraph:
            ``(4) A provision allowing for the participation of other 
        responsible parties in the response action.; and
            (b) inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) Exception to required action.--No department, agency, 
        and instrumentality of the United States that owns or operates 
        a facility over which the department, agency, or 
        instrumentality exercised no regulatory or other control over 
        activities that directly or indirectly resulted in a release or 
        threat of a release of a hazardous substance shall be subject 
        to the requirements of paragraphs (1) through (6) except (5)(F) 
        and (G) of this subsection if the department, agency, or 
        instrumentality demonstrates to the satisfaction of the 
        Administrator that--
                    ``(A) no department, agency, or instrumentality was 
                the primary or sole source or cause of a release or 
                threat of release of a hazardous substance at the 
                facility;
                    ``(B) the activities either directly or indirectly 
                resulting in a release or threat of a release of a 
                hazardous substance at the facility were pursuant to a 
                statutory authority and occurred prior to 1976; and
                    ``(C) the person or persons primarily or solely 
                responsible for such release or threat of release are 
                financially viable, and capable of performing or 
                financing the response action at the facility.
        In the event the above conditions are not met, the applicable 
        terms of section 120(e) apply to the department, agency, or 
        instrumentality of the United States at the facility. Upon 
        determination by the Administrator that a department, agency, 
        or instrumentality qualifies for the exception provided by this 
        paragraph, the head of such department, agency, or 
        instrumentality may exercise enforcement authority pursuant 
        under section 106 (in addition to any other delegated 
        authorities). To the extent a person who has been issued an 
        order under the authority of this paragraph seeks reimbursement 
        under the provisions of section 106, the relevant department, 
        agency, or instrumentality, and not the Fund, shall be the 
        source of any appropriate reimbursement. If the Administrator 
        determines that the relevant department, agency, or 
        instrumentality has failed to seek the performance of response 
        actions by responsible parties within 12 months after the 
        facility has been listed on the National Priorities List, the 
        Administrator may void the exception provided by this paragraph 
        and the applicable provisions or section 120(e) would apply to 
        the department, agency or instrumentality at the facility.

SEC. 602. TRANSFERS OF UNCONTAMINATED PROPERTY.

    Section 120(h)(4)(A) of the Act (42 U.S.C. 9620(h)(4)(A)) is 
amended by striking the words ``stored for one year or more,''.

SEC. 603. AGREEMENTS TO TRANSFER BY DEED.

    Section 120(h) of the Act (42 U.S.C. 9620(h)) is amended by adding 
after paragraph (5) the following new paragraph:
            ``(6) Agreements to transfer by deed.--Nothing in this 
        subsection shall be construed to prohibit the head of the 
        department, agency, or instrumentality of the United States 
        from entering into an agreement to transfer by deed real 
        property or facilities prior to the entering of such deed.''.

SEC. 604. ALTERNATIVE OR INNOVATIVE TREATMENT TECHNOLOGIES.

    Section 111(a) of the Act of 1980 is amended by adding after 
paragraph (6) the following new paragraph:
            ``(7) Alternative or innovative treatment technologies.--
                    ``(A) When a party potentially liable under this 
                Act undertakes a response action pursuant to an 
                administrative order or consent decree, and employs an 
                alternative or innovative technology that fails to 
                achieve a level of response required under this Act, 
                the Administrator may use the Fund to reimburse no more 
                than 50 percent of response costs incurred by the 
                potentially liable party in taking other actions 
                approved by the Administrator to achieve these required 
                levels of response. The Administrator shall issue 
                guidance on the procedures and criteria to be used in 
                determining whether a remedial technology constitutes 
                an alternative or innovative technology for purposes of 
                this subsection, and the appropriate level of funding 
                for response activities that are necessary to achieve a 
                level of response required under this Act. The 
                Administrator shall review and update such guidance, as 
                appropriate.''.

SEC. 605. DEFINITIONS.

    Section 101 of the Act (42 U.S.C. 9601)) is amended by--
            (a) in paragraph (1) striking the ``.'' after ``Act'' and 
        inserting ``and includes the cost of enforcement activities 
        related thereto.'';
            (b) in paragraph (10)(H) striking ``subject to'' and 
        inserting ``in compliance with'';.
            (c) in paragraph (14)) inserting after ``Congress'' the 
        phrase ``, unless such waste contains a substance that is 
        listed under any other subparagraph of this paragraph'';
            (d) in paragraph (20) by--
                    (1) in subparagraph (A) inserting after ``similar 
                means to'' the phrase ``the United States (or any 
                department, agency, or instrumentality thereof), or'';
                    (2) in subparagraph (D) by inserting--
                            (A) after ``does not include'' the phrase 
                        ``the United States (or any department, agency, 
                        or instrumentality thereof), or''; and,
                            (B) before ``any State'' the phrase ``any 
                        department, agency, or instrumentality of the 
                        United States, or''; and
                    (3) in subparagraph (D) by striking ``a'' after 
                ``such'' and inserting ``department, agency, or 
                instrumentality of the United States, or'';
                    (4) by adding after subparagraph (D) the following 
                new subparagraphs:
                    ``(E) The term `owner or operator' shall include a 
                trust or estate, but does not include a person who 
                holds title to a vessel or facility solely in the 
                capacity as a fiduciary, provided that such person--
                            ``(i) does not participate in the 
                        management of a vessel or facility operations 
                        that result in a release or threat of release 
                        of hazardous substances; and
                            ``(ii) complies with such other 
                        requirements as the Administrator may set forth 
                        by regulation.
                    ``(F) The term `owner or operator' shall not 
                include the United States or any department, agency or 
                instrumentality of the United States or a conservator 
                or receiver appointed by a department, agency or 
                instrumentality of the United States, which acquired 
                ownership or control of a vessel or facility (or any 
                right or interest therein)--
                            ``(i) in connection with the exercise of 
                        receivership or conservatorship authority or 
                        the liquidation or winding up of the affairs of 
                        any entity subject to a receivership or 
                        conservatorship, including any subsidiary 
                        thereof; or
                            ``(ii) in connection with the exercise of 
                        any seizure or forfeiture authority; or
                            ``(iii) pursuant to an act of Congress 
                        specifying the property to be acquired:
                Provided, That the United States, or conservator or 
                receiver appointed by the United States does not 
                participate in the management of the vessel or facility 
                operations that result in a release or threat of 
                release of hazardous substances and complies with such 
                other requirements as the Administrator may set forth 
                by regulation.'';
            (e) in paragraph (23) adding at the end of the paragraph 
        the following ``The terms `remove' or `removal' are not limited 
        to emergency situations and include actions to address future 
        or potential exposures and, provided such actions are 
        consistent with the requirements of this Act, actions obviating 
        the need for a remedial action.'';
            (f) in paragraph (25) striking ``related thereto'', and 
        inserting ``and oversight activities related thereto when such 
        activities are undertaken by the President.'';
            (g) in paragraph (29) striking the ``.'' after ``Act'' and 
        inserting ``, except that the term ``hazardous substance'' 
        shall be substituted for the term ``hazardous waste'' in the 
        definitions of ``disposal'' and ``treatment.'';
            (h) in paragraph (33) striking ``; except that the'', and 
        inserting ``. The'';
            (i) adding after paragraph (38) the following new 
        paragraphs:
            ``(39) Bona fide prospective purchaser.--The term `bona 
        fide prospective purchaser' means a person who acquires 
        ownership of a facility after enactment of this provision, and 
        who can establish by a preponderance of the evidence that--
                    ``(A) all active disposal of hazardous substances 
                at the facility occurred before that person acquired 
                the facility;
                    ``(B) the person conducted a site audit of the 
                facility in accordance with commercially reasonable and 
                generally accepted standards and practices. The 
                Administrator shall have authority to develop standards 
                by guidance or regulation, or to designate standards 
                promulgated or developed by others, that satisfy this 
                subparagraph. In the case of property for residential 
                or other similar use, a site inspection and title 
                search that reveal no basis for further investigation 
                satisfy the requirements of this subparagraph;
                    ``(C) the person provided all legally required 
                notices with respect to the discovery or release of any 
                hazardous substances at the facility;
                    ``(D) the person exercised due care with respect to 
                hazardous substances found at the facility and took 
                reasonably necessary steps to address any release or 
                threat of release of hazardous substances and to 
                protect human health and the environment. The 
                requirements of due care and reasonably necessary steps 
                with respect to hazardous substances discovered at the 
                facility shall be conclusively established where the 
                person successfully completes a response action 
                pursuant to a State voluntary response program, as 
                defined in section 127 of this title; and
                    ``(E) the person provides full cooperation, 
                assistance, and facility access to those responsible 
                for response actions at the facility, including the 
                cooperation and access necessary for the installation, 
                integrity, operation, and maintenance of any complete 
                or partial response action at the facility; and
                    ``(F) the person is not affiliated with any other 
                person liable for response costs at the facility, 
                through any direct or indirect familial relationship, 
                or any contractual, corporate, or financial 
                relationship other than that created by the instruments 
                by which title to the facility is conveyed or financed.
            ``(40) Fiduciary.--
                    ``(A) Except as provided in subparagraph (B), the 
                term `fiduciary' means a person who owns or controls 
                property--
                            ``(i) as a fiduciary within the meaning of 
                        section 3(31) of the Employee Retirement Income 
                        Security Act of 1974, or as a trustee, 
                        executor, administrator, custodian, guardian, 
                        conservator, or receiver acting for the 
                        exclusive benefit of another person; and
                            ``(ii) who has not previously owned or 
                        operated the property in a non-fiduciary 
                        capacity.
                    ``(B) The term `fiduciary' does not include any 
                person described in subparagraph (A)--
                            ``(i) who acquires ownership or control of 
                        property to avoid the liability of such person 
                        or any other person under this Act; or
                            ``(ii) who owns or controls property on 
                        behalf of or for the benefit of a holder of a 
                        security interest.
            ``(41) Municipal solid waste.--The term `municipal solid 
        waste' means all waste materials generated by households, 
        including single and multi-family residences, and hotels and 
        motels. The term also includes waste materials generated by 
        commercial, institutional, and industrial sources, to the 
        extent such wastes (A) are essentially the same as waste 
        normally generated by households or (B) were collected and 
        disposed of with other municipal solid waste or sewage sludge 
        as part of normal municipal solid waste collection services, 
        and, regardless of when generated, would be considered 
        conditionally exempt small quantity generator waste under 
        section 3001(d) of the Solid Waste Disposal Act (42 U.S.C. 
        6921(d)). Examples of municipal solid waste include food and 
        yard waste, paper, clothing, appliances, consumer product 
        packaging, disposable diapers, office supplies, cosmetics, 
        glass and metal food containers, elementary or secondary school 
        science laboratory waste, and household hazardous waste (such 
        as painting, cleaning, gardening, and automotive supplies). The 
        term `municipal solid waste' does not include combustion ash 
        generated by resource recovery facilities or municipal 
        incinerators, or waste from manufacturing or processing 
        (including pollution control) operations not essentially the 
        same as waste normally generated by households.
            ``(42) Municipality.--The term `municipality' means a 
        political subdivision of a State, including cities, counties, 
        villages, towns, townships, boroughs, parishes, school 
        districts, sanitation districts, water districts, and other 
        public entities performing local governmental functions. The 
        term also includes a natural person acting in the capacity of 
        an official, employee, or agent of a municipality in the 
        performance of governmental functions.
            ``(43) Qualified household hazardous waste collection 
        program.--The term `qualified household hazardous waste 
        collection program' means a program established by an entity of 
        the federal government, a state, municipality, or Indian tribe 
        that provides, at a minimum, for semiannual collection of 
        household hazardous wastes at accessible, well-publicized 
        collection points within the relevant jurisdiction.
            ``(44) Sewage sludge.--The term `sewage sludge' means 
        solid, semisolid, or liquid residue removed during the 
        treatment of municipal waste water, domestic sewage, or other 
        waste water at or by publicly-owned or federally-owned 
        treatment works.
            ``(45) Site characterization.--The term `site 
        characterization' means an investigation that determines the 
        nature and extent of a release or potential release of a 
        hazardous substance, pollutant or contaminant, and that 
        includes an on-site evaluation and sufficient testing, sampling 
        and other field data gathering activities to analyze whether 
        there has been a release or threat of a release of a hazardous 
        substance, pollutant or contaminant, and the health and 
        environmental risks posed by such a release or threat of 
        release. The investigation also may include review of existing 
        information (available at the time of the review), an off-site 
        evaluation, or other measures as the Administrator deems 
        appropriate.
            ``(46) Voluntary response.--The term `voluntary response' 
        means a response action--
                    ``(A) undertaken and financed by a current owner or 
                prospective purchaser under a voluntary response 
                program; and
                    ``(B) with respect to which the current owner or 
                prospective purchaser agrees to pay all State oversight 
                costs.''.

SEC. 606. CONFORMING AMENDMENT.

    Section 126(a) of the Act (42 U.S.C. 9626(a)) is amended by adding, 
after ``section 104(i) (regarding health authorities),'' the phrase 
``section 127 (regarding State authority), section 120 (regarding 
voluntary response actions),''.

                           TITLE VII--FUNDING

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    Section 111(a) of the Act is amended by striking ``$8,500,000,000 
for the 5-year period beginning on October 17, 1986, and not more than 
$5,100,000,000 for the period commencing October 1, 1991, and ending 
September 30, 1994'' and inserting ``$9,600,000,000 for the period 
commencing October 1, 1994 and ending September 30, 1999''.

SEC. 702. ORPHAN SHARE FUNDING.

    Section 111(a) is amended by adding after paragraph (7) (as added 
by this Act) the following new paragraph:
            ``(8) Orphan share funding.--Payment of orphan shares 
        pursuant to section 122a(e) of this Act.''.

SEC. 703. AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY.

    Section 111(m) of the Act is amended to read as follow:
    ``(m) There shall be directly available to the Agency for Toxic 
Substances and Disease Registry to be used for the purpose of carrying 
out activities described in subsection (c)(4) of this section and 
section 104(i) of this Act not less than $80,000,000 per fiscal year 
for each of fiscal years 1995, 1996, 1997, 1998, and 1999. Any funds so 
made available which are not obligated by the end of the fiscal year in 
which made available shall be returned to the Fund.''.

SEC. 704. LIMITATIONS ON RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
              PROGRAMS.

    Section 111(n) of the Act is amended to read as follows:
            ``(1) Section 311(b).--For each of the fiscal years 1995, 
        1996, 1997, 1998, and 1999, not more than $20,000,000 of the 
        amounts available in the Fund may be used for the purposes of 
        carrying out the applied research, development, and 
        demonstration program for alternative or innovative 
        technologies and training program authorized under section 
        311(b) of this title (relating to research, development, 
        demonstration) other than basic research. Such amounts shall 
        remain available until expended.
            ``(2) Section 311(a).--From the amounts available in the 
        Fund, not more than the following amounts may be used for the 
        purposes of section 311(a) of this title (relating to hazardous 
        substance research, demonstration, and training activities)--
                    ``(A) For fiscal year 1995 $40,000,000,
                    ``(B) For fiscal year 1996 $50,000,000,
                    ``(C) For fiscal year 1997 $55,000,000,
                    ``(D) For fiscal year 1998 $55,000,000,
                    ``(E) For fiscal year 1999 $55,000,000,
        No more than 10 percent of such amounts shall be used for 
        training under section 311(a) of this title for any fiscal 
        year.
            ``(3) Section 311(d).--For each of the fiscal years 1995, 
        1996, 1997, 1998, and 1999, not more than $5,000,000 of the 
        amounts available in the Fund may be used for the purposes of 
        section 311(d) of this title (relating to university hazardous 
        substance research centers).''.

SEC. 705. AUTHORIZATION OF APPROPRIATIONS FROM GENERAL REVENUES.

    Section 111(p)(1) of the Act is amended to read as follows:
            ``(1) In general.--The following sums are authorized to be 
        appropriated, out of any money in the Treasury not otherwise 
        appropriated, to the Hazardous Substance Superfund:
                    ``(A) For fiscal year 1995 $250,000,000,
                    ``(B) For fiscal year 1996 $250,000,000,
                    ``(C) For fiscal year 1997 $250,000,000,
                    ``(D) For fiscal year 1998 $250,000,000,
                    ``(E) For fiscal year 1999 $250,000,000,
        In addition there is authorized to be appropriated to the 
        Hazardous Substance Superfund for each fiscal year an amount 
        equal to so much of the aggregate amount authorized to be 
        appropriated under this subsection (and paragraph (2) of 
        section 131(b) of this title) as has not been appropriated 
        before the beginning of the fiscal year involved.''.

SEC. 706. ADDITIONAL LIMITATIONS.

    Section 111 of the Act is amended by adding after subsection (p) 
the following new subsections:
    ``(q) Alternative or Innovative Treatment Technologies.--For each 
of the fiscal years 1995, 1996, 1997, 1998, and 1999, not more than 
$40,000,000 of the amounts available in the Fund may be used for the 
purposes of subsection (a)(7) of this section (relating to alternative 
or innovative treatment technologies).
    ``(r) Citizen Information and Access Offices.--For each of the 
fiscal years 1995, 1996, 1997, 1998, and 1999, not more than 
$50,000,000 of the amounts available in the Fund may be used for the 
purposes of section 117(j) of this Act (relating to citizen information 
and access offices).
    ``(s) Multiple Sources of Risk Demonstration Projects.--For the 
period commencing October 1, 1994 and ending September 30, 1999, not 
more than $30,000,000 of the amounts available in the Fund may be used 
for the purposes of section 117(k) of this Act (relating to multiple 
sources of risk demonstration projects).''.

          TITLE VIII--ENVIRONMENTAL INSURANCE RESOLUTION FUND

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Environmental Insurance Resolution 
and Equity Act of 1994''.

SEC. 802. ENVIRONMENTAL INSURANCE RESOLUTION FUND.

    (a) Environmental Insurance Resolution Fund Established.--There is 
hereby established the Environmental Insurance Resolution Fund 
(hereinafter referred to as the ``Resolution Fund'').
    (b) Offices.--The principal office of the Resolution Fund shall be 
in the District of Columbia or at such other place as the Resolution 
Fund may from time to time prescribe.
    (c) Status of Resolution Fund.--Except as expressly provided in 
this title, the Resolution Fund shall not be considered an agency or 
establishment of the United States. The members of the Board of 
Trustees shall not, by reason of such membership, be deemed to be 
officers or employees of the United States.
    (d) Board of Trustees.--
            (1) In general.--The Resolution Fund shall be administered 
        by a Board of Trustees (Board).
            (2) Membership.--The Board shall consist of--
                    (A) Governmental members.--
                            (i) The Administrator of the Environmental 
                        Protection Agency.
                            (ii) The Attorney General of the United 
                        States.
                    (B) Public members.--Five public members appointed 
                by the President not later than 60 days after the date 
                of enactment of this title, not less than two of whom 
                shall represent insurers subject to section        of 
                the Internal Revenue Code of 1986, and not less than 
                two of whom shall represent eligible persons defined in 
                subsection (g)(2)(A). The public members shall be 
                citizens of the United States.
                    (C) Ex-officio member.--The Secretary of the 
                Treasury shall serve as an ex officio member of the 
                Board.
            (3) Chair.--The Chair of the Board shall be designated by 
        the President from time to time from among the members 
        described in paragraph (2)(A). No expenditure may be made, or 
        other action taken, by the Resolution Fund without the 
        concurrence of the Chair of the Board.
            (4) Compensation.--Governmental members of the Board shall 
        serve without additional compensation. Public members of the 
        Board shall, while attending meetings of the Board or while 
        engaged in duties related to such meetings or other activities 
        of the Board pursuant to this title, be entitled to receive 
        compensation at the rate of $200 per day, including travel 
        time. While away from their homes or regular places of 
        business, members of the Board shall be allowed travel and 
        actual, reasonable and necessary expenses to the same extent as 
        officers of the United States.
            (5) Term of public members.--Public members of the Board 
        shall serve for a term of 5 years, except that such members may 
        be removed by the President for any reason at any time. A 
        public member whose term has expired may continue to serve on 
        the Board until such time as the President appoints a 
        successor. The President may reappoint a public member of the 
        Board, but no such member may consecutively serve more than two 
        terms.
            (6) Vacancies.--A vacancy on the Board shall be filled in 
        the same manner as the original appointment, except that such 
        appointment shall be for the balance of the unexpired term of 
        the vacant position.
            (7) Quorum.--Four members of the Board shall constitute a 
        quorum for the conduct of business.
            (8) Meetings.--The Board shall meet not less than quarterly 
        at the call of the Chair. Meetings of the Board shall be open 
        to the public unless the Board, by a majority vote of members 
        present in open session, determines that it is necessary or 
        appropriate to close a meeting. The Chair shall provide at 
        least 10 days notice of a meeting by publishing a notice in the 
        Federal Register and such notice shall indicate whether it is 
        expected that the Board will consider closing all or a portion 
        of the meeting. Nothing in this paragraph shall be construed to 
        apply to informal discussions or meetings among Board members.
    (e) Officers and Employees.--
            (1) Chief executive officer; chief financial officer.--
                    (A) The Resolution Fund shall have a Chief 
                Executive Officer appointed by the Board who shall 
                exercise any authority of the Resolution Fund under 
                such terms and conditions as the Board may prescribe.
                    (B) The Resolution Fund shall have a Chief 
                Financial Officer appointed by the Board.
            (2) Compensation.--No officer or employee of the Resolution 
        Fund may be compensated by the Resolution Fund at an annual 
        rate of pay which exceeds the rate of basic pay in effect from 
        time to time for level I of the Executive Schedule under 
        section 5312 of title 5, United States Code. No officer or 
        employee of the Resolution Fund, other than a member of the 
        Board, may receive any salary or other compensation from any 
        source other than the Resolution Fund for services rendered 
        during the period of employment by the Resolution Fund.
            (3) Political test or qualification.--No political test or 
        qualification shall be used in selecting, appointing, 
        promoting, or taking other personnel actions with respect to 
        officers, agents, and employees of the Resolution Fund.
            (4) Assistance by federal agencies.--The Attorney General, 
        the Secretary of the Treasury, and the Administrator of the 
        Environmental Protection Agency, may to the extent practicable 
        and feasible, and in their sole discretion, make personnel and 
        other resources available to the Resolution Fund. Such 
        personnel and resources may be provided on a reimbursable 
        basis, and any personnel so provided shall not be considered 
        employees of the Resolution Fund for purposes of paragraph (2).
    (f) Powers of Resolution Fund.--Notwithstanding any other provision 
of law, except as provided in this title or as may be hereafter enacted 
by the Congress expressly in limitation of the provisions of this 
paragraph, the Resolution Fund shall have power--
            (1) to have succession until dissolved by Act of Congress;
            (2) to make and enforce such bylaws, rules and regulations 
        as may be necessary or appropriate to carry out the purposes of 
        this title;
            (3) to make and perform contracts, agreements, and 
        commitments;
            (4) to settle, adjust, and compromise, and with or without 
        consideration or benefit to the Resolution Fund release or 
        waive in whole or in part, in advance or otherwise, any claim, 
        demand, or right of, by, or against the Resolution Fund;
            (5) to sue and be sued, complain and defend, in any State, 
        Federal or other court;
            (6) to determine its necessary expenditures and the manner 
        in which the same shall be incurred, allowed, and paid, and 
        appoint, employ, and fix and provide for the duties, 
        compensation and benefits of officers, employees, attorneys, 
        and agents, all of whom shall serve at the pleasure of the 
        Board;
            (7) to invest funds, through the Secretary of the Treasury, 
        in interest bearing securities of the United States suitable to 
        the needs of the Resolution Fund: Provided, That interest 
        earned on such investments shall be retained by the Resolution 
        Fund and used consistent with the purposes of this title;
            (8) to hire or accept the voluntary services of 
        consultants, experts, advisory boards, and panels to aid the 
        Resolution Fund in carrying out the purposes of this title; and
            (9) to take such other actions as may be necessary to carry 
        out the responsibilities of the Resolution Fund under this 
        title. Nothing in this subsection or any other provision of 
        this title shall be construed to permit the Resolution Fund to 
        issue any evidence of indebtedness or otherwise borrow money.
    (g) Resolution of Disputes Between Insureds and Insurers.--
            (1) In general.--The Resolution Fund shall offer a 
        comprehensive resolution described in this subsection with 
        respect to all eligible costs of an eligible person at eligible 
        sites.
            (2) Definitions.--
                    (A) Eligible person.--For purposes of this 
                subsection, the term ``eligible person'' means any 
                individual, firm, corporation, association, 
                partnership, consortium, joint venture, commercial 
                entity or governmental unit (including any predecessor 
                in interest or any subsidiary thereof) that satisfies 
                the following criteria:
                            (i) Status as potentially responsible 
                        party.--An eligible person--
                                    (I) shall have been named at any 
                                time as a potentially responsible party 
                                pursuant to the Comprehensive 
                                Environmental Response, Compensation 
                                and Liability Act with respect to an 
                                eligible site on the National Priority 
                                List in connection with a hazardous 
                                substance that was disposed of on or 
                                before December 31, 1985; or
                                    (II) is or was liable, or alleged 
                                to be liable, at any time for removal 
                                (as defined in section 101(23) of the 
                                Comprehensive Environmental Response, 
                                Compensation and Liability Act (42 
                                U.S.C. 9601(23)) at any eligible site 
                                in connection with a hazardous 
                                substance that was disposed of on or 
                                before December 31, 1985.
                            (ii) Insurance coverage.--An eligible 
                        person shall have demonstrated, to the 
                        satisfaction of the Resolution Fund, that such 
                        person had entered into a valid contract for 
                        comprehensive general liability (including 
                        broad form liability, general liability, 
                        commercial general liability, and excess or 
                        umbrella coverage) or commercial multi-peril 
                        (including broad form property, commercial 
                        package, special multi-peril, and excess or 
                        umbrella coverage) insurance coverage--
                                    (I) for any seven years in any 
                                consecutive 14 year period prior to 
                                January 1, 1986; or
                                    (II) in the case of a person that 
                                has been in existence for less than 14 
                                years prior to January 1, 1986, for at 
                                least one-half of such years of 
                                existence.
                        For purposes of this clause, a valid contract 
                        for insurance shall not include any contract 
                        for insurance with respect to which a person 
                        has entered into a settlement with an insurer 
                        providing, or where a judgment has provided, 
                        that the contract has been satisfied and that 
                        such person has no right to make any further 
                        claims under such contract.
                    (B) Eligible costs.--
                            (i) In general.--For purposes of this 
                        subsection, the term ``eligible costs'' means 
                        costs described in clause (ii) or (iii) 
                        incurred with respect to a hazardous substance 
                        that was disposed of on or before December 31, 
                        1985--
                                    (I) for which an eligible person 
                                has not been reimbursed; or
                                    (II) for which an eligible person 
                                has been reimbursed and that are the 
                                subject of a dispute between the 
                                eligible person and an insurer.
                            (ii) NPL sites.--With respect to an 
                        eligible site described in subparagraph (C)(i), 
                        eligible costs means costs described in clause 
                        (i)--
                                    (I) of response (as defined in 
                                section 101(25) of the Comprehensive 
                                Environmental Response, Compensation 
                                and Liability Act (42 U.S.C. 9601(25));
                                    (II) for natural resources damages; 
                                or
                                    (III) to defend potential liability 
                                (including, but not limited to, 
                                attorney's fees, costs of suit, 
                                consultant and expert fees and costs, 
                                and expenses for testing and 
                                monitoring).
                            (iii) NON-NPL sites.--With respect to an 
                        eligible site described in subparagraph 
                        (C)(ii), eligible costs means costs described 
                        in clause (i)--
                                    (I) of removal (as defined in 
                                section 101(23) of the Comprehensive 
                                Environmental Response, Compensation 
                                and Liability Act (42 U.S.C. 9601(23)); 
                                or
                                    (II) to defend potential liability 
                                (including, but not limited to, 
                                attorney's fees, costs of suit, 
                                consultant and expert fees and costs, 
                                and expenses for testing and 
                                monitoring).
                            (iv) Limit on eligible costs.--
                                    (I) Except as provided in subclause 
                                (II), the eligible costs of an eligible 
                                person may not exceed--
                                            (aa) $15,000,000 in the 
                                        case of an eligible person that 
                                        has demonstrated insurance 
                                        coverage pursuant to 
                                        subparagraph (A)(ii))(I); or
                                            (bb) an amount equal to 
                                        one-seventh of $15,000,000 for 
                                        each year of insurance 
                                        coverage, in the case of an 
                                        eligible person that has 
                                        demonstrated insurance coverage 
                                        pursuant to subparagraph 
                                        (A)(ii)(II).
                                    (II) The limitation on eligible 
                                costs provided in subclause (I) shall 
                                not apply to an eligible person that, 
                                when filing a request for a resolution 
                                offer with the Resolution Fund, 
                                presents evidence to the satisfaction 
                                of the Resolution Fund that the limits 
                                on valid contracts of insurance 
                                (including per occurrence, aggregate, 
                                primary, excess or other limits) of 
                                such eligible person prior to January 
                                1, 1986, cumulatively exceed the amount 
                                determined pursuant to subclause (I) 
                                without reference to any time period. 
                                For purposes of this clause, a valid 
                                contract for insurance shall not 
                                include any contract for insurance with 
                                respect to which an eligible person has 
                                entered into a settlement with an 
                                insurer providing, or where a judgment 
                                has provided, that the contract has 
                                been satisfied and that such eligible 
                                person has no right to make any further 
                                claims under such contract.
                    (C) Eligible site.--For purposes of this 
                subsection, the term ``eligible site'' means--
                            (i) any site or facility placed on the 
                        National Priority List at any time, at which a 
                        hazardous substance was disposed of on or 
                        before December 31, 1985; or
                            (ii) any site or facility subject to a 
                        removal (as defined in section 101(23) of the 
                        Act (42 U.S.C. 9601(23)) conducted pursuant to 
                        such Act at any time, at which a hazardous 
                        substance was disposed of on or before December 
                        31, 1985.
                For purposes of this subparagraph, the term 
                ``facility'' shall have the same meaning as provided in 
                section 101(9) of the Comprehensive Environmental 
                Response, Compensation and Liability Act (42 U.S.C. 
                9601(9)).
                    (D) State.--For purposes of this subsection, the 
                term ``State'' shall have the same meaning as provided 
                in section 101(27) of the Comprehensive Environmental 
                Response, Compensation and Liability Act (42 U.S.C. 
                9601(27)).
            (3) Resolution offers.--
                    (A) In general.--The Resolution Fund shall offer 
                one comprehensive resolution to each eligible person. 
                The offer shall--
                            (i) be for a percentage of all of the 
                        eligible costs of such eligible person incurred 
                        in connection with all eligible sites, 
                        determined pursuant to paragraph (4); and
                            (ii) state the limitation on eligible 
                        costs, if any, applicable to the eligible 
                        person pursuant to paragraph (2)(B)(ii).
                    (B) Requests for resolution offers.--An eligible 
                person shall file a request for resolution from the 
                Resolution Fund in such form and manner as the 
                Resolution Fund shall prescribe. No such request shall 
                be deemed received by the Resolution Fund before the 
                date final regulations concerning State percentage 
                categories are published in the Federal Register 
                pursuant to paragraph 4(B)(iii). The Resolution Fund 
                shall make an offer of resolution, determined pursuant 
                to paragraph (4), to each eligible person that has 
                filed a request for an offer of resolution not later 
                than 180 days after the receipt of a complete request 
                as determined by the Resolution Fund.
                    (C) Review of resolution offers.--No resolution 
                offer made by the Resolution Fund shall be subject to 
                review by any court.
            (4) Determination of resolution offers.--
                    (A) In general.--The Resolution Fund shall 
                determine a resolution offer--
                            (i) in the case of an eligible person that 
                        has established only one State litigation venue 
                        pursuant to subparagraph (C), by applying the 
                        State percentage determined pursuant to 
                        subparagraph (B)(iii) to the established State 
                        litigation venue;
                            (ii) in the case of an eligible person that 
                        has established two or more State litigation 
                        venues pursuant to subparagraph (C), each site 
                        with respect to which a State litigation venue 
                        has been established shall be accorded equal 
                        value and the applicable percentage shall be 
                        the weighted average of all established State 
                        litigation venues; or
                            (iii) in the case of an eligible person 
                        that has not established any State litigation 
                        venue pursuant to subparagraph (C)--
                                    (I) if the eligible person has 
                                potential liability in connection with 
                                only one hazardous waste site, by 
                                applying the State percentage 
                                determined pursuant to subparagraph 
                                (B)(iii) to the State in which the site 
                                is located; or
                                    (II) if the eligible person has 
                                potential liability in connection with 
                                more than one hazardous waste site, 
                                each site shall be accorded equal value 
                                and the applicable percentage shall be 
                                the weighted average of all States in 
                                which the sites are located;
                    (B) State percentage.--
                            (i) In general.--The Congress finds that as 
                        of January 1, 1994, State law generally is more 
                        favorable to eligible persons that pursue 
                        claims concerning eligible costs against 
                        insurers in some States, that State law 
                        generally is more favorable to insurers with 
                        respect to such claims in some States, and that 
                        in some States the law generally favors neither 
                        insurers nor eligible persons with respect to 
                        such claims or that there is insufficient 
                        information to determine whether such law 
                        generally favors insurers or eligible persons 
                        with respect to such claims. The Congress 
                        further finds that considerations of equity and 
                        fairness require that resolution offers made by 
                        the Resolution Fund must vary to reflect the 
                        relative state of the law among the several 
                        States.
                            (ii) Proposed regulations.--The Resolution 
                        Fund shall examine the law in each State as of 
                        January 1, 1994. Not later than 120 days after 
                        the date of enactment of this title, the 
                        Resolution Fund shall publish in the Federal 
                        Register a notice of proposed rulemaking 
                        soliciting public comment for 60 days and 
                        classifying States into the following 
                        percentage categories:
                                    (I) 20 percent, in the case of the 
                                ten States in which the Resolution Fund 
                                determines that State law generally is 
                                most favorable to insurers relative to 
                                the other States;
                                    (II) 60 percent, in the case of the 
                                ten States in which the Resolution Fund 
                                determines that State law generally is 
                                most favorable to eligible persons 
                                relative to the other States; and
                                    (III) 40 percent, in the case of 
                                all other States.
                            (iii) Final regulations.--
                                    (I) Not later than 60 days after 
                                the close of the public comment period, 
                                the Resolution Fund shall publish in 
                                the Federal Register final regulations 
                                providing State classifications.
                                    (II) The State classifications 
                                provided in the final rule shall govern 
                                all resolution offers made by the 
                                Resolution Fund and shall not be 
                                subject to amendment by the Resolution 
                                Fund.
                                    (III) Notwithstanding any other 
                                provision of law, the final regulations 
                                promulgated by the Resolution Fund 
                                pursuant to this clause shall not be 
                                subject to review by any court.
                    (C) Litigation venue.--For purposes of this 
                subsection, litigation venue is considered established 
                with respect to an eligible person if--
                            (i) on or before December 31, 1993, the 
                        eligible person had pending in a court of 
                        competent jurisdiction a complaint or cross 
                        complaint against an insurer with respect to 
                        eligible costs at an eligible site; and
                            (ii) no motion to change venue with respect 
                        to such complaint was pending on or before 
                        January 31, 1994.
            (5) Acceptance or rejection of resolution offer.--
                    (A) In general.--
                            (i) An eligible person may, when submitting 
                        a request for a resolution to the Resolution 
                        Fund, make a written irrevocable election to 
                        accept any resolution to be made by the 
                        Resolution Fund.
                            (ii) An eligible person that does not make 
                        an election pursuant to clause (i) shall, 
                        within 60 days of the receipt of a resolution 
                        offer from the Resolution Fund, notify the 
                        Resolution Fund in writing of its irrevocable 
                        acceptance or rejection of such offer. An 
                        eligible person who does not accept or reject a 
                        resolution offer within 60 days shall be deemed 
                        to have made an irrevocable election to reject 
                        the offer and the provisions of subparagraph 
                        (C) shall apply.
                    (B) Resolution offer accepted.--An eligible person 
                that accepts a resolution offered by the Resolution 
                Fund shall be subject to the provisions of this 
                paragraph.
                            (i) Waiver of insurance claims.--The 
                        Resolution Fund shall not make payments to an 
                        eligible person unless the eligible person 
                        agrees in writing, subject to reinstatement 
                        described in clause (ii)--
                                    (I) to waive any existing and 
                                future claims against any insurer for 
                                eligible costs; and
                                    (II) to stay or dismiss each claim 
                                pending against an insurer for eligible 
                                costs.
                            (ii) Reinstatement of insurance claims.--
                                    (I) If the Resolution Fund fails to 
                                timely fulfill its obligations to an 
                                eligible person under the terms of an 
                                accepted resolution offer, such 
                                eligible person shall be entitled to 
                                reinstate any claim under a contract 
                                for insurance with respect to eligible 
                                costs.
                                    (II) Statute of limitation 
                                tolled.--Notwithstanding any other 
                                provision of Federal or State law, any 
                                Federal or State statute of limitation 
                                concerning the filing or prosecution of 
                                an action by an eligible person against 
                                an insurer, or by an insurer against an 
                                eligible person, with respect to 
                                eligible costs shall be tolled during 
                                the pendency of the stay of pending 
                                litigation established by section 
                                804(a).
                            (iii) Payment of resolution offers.--
                                    (I) Pre-resolution costs.--The 
                                Resolution Fund shall make equal annual 
                                payments over a period of eight years 
                                for eligible costs incurred by an 
                                eligible person on or before the date 
                                such person accepts a resolution offer 
                                pursuant to subparagraph (A) (i) or 
                                (ii), and interest shall not accrue 
                                with respect to such eligible costs. 
                                The Resolution Fund may, in its sole 
                                discretion, make such payments over a 
                                shorter period if the aggregate 
                                eligible costs do not exceed $50,000. 
                                An eligible person shall submit to the 
                                Resolution Fund documentation of such 
                                costs as the Resolution Fund may 
                                require. The initial payment to an 
                                eligible person under this subclause 
                                shall be made not later than 60 days 
                                after the receipt of documentation 
                                satisfactory to the Resolution Fund.
                                    (II) Post-resolution costs.--The 
                                Resolution Fund shall make payments for 
                                eligible costs incurred by an eligible 
                                person after the date such person 
                                accepts a resolution offer pursuant to 
                                subparagraph (A) (i) or (ii) to the 
                                eligible person, or to a contractor or 
                                other person designated by the eligible 
                                person, subject to such documentation 
                                as the Resolution Fund may require. 
                                Payments under this subclause shall be 
                                made not later than 60 days after the 
                                receipt of documentation satisfactory 
                                to the Resolution Fund.
                                    (III) Adjustment for deductible or 
                                self insurance.--In the case of an 
                                eligible person that has submitted to 
                                the Resolution Fund, as proof of status 
                                as an eligible person, a contract for 
                                insurance described in paragraph 
                                (2)(A)(ii) that is subject to a self-
                                insured retention or a deductible, 
                                payment to such eligible person 
                                pursuant to a resolution shall be 
                                reduced by the amount of such self-
                                insured retention or deductible, except 
                                that such reduction shall not exceed 
                                the amount of one self-insured 
                                retention or one deductible that the 
                                eligible person would have been 
                                required to pay with respect to one 
                                claim for eligible costs under the 
                                terms of the contracts for insurance 
                                submitted. In the event that the 
                                eligible person submitted more than one 
                                contract for insurance, any such 
                                reduction shall be made with respect to 
                                the lowest of the amounts of self-
                                insured retentions and deductibles.
                                    (IV) Adjustment for certain duty-
                                to-defend costs.--If an insurer has 
                                incurred and paid costs pursuant to a 
                                duty-to-defend clause contained in a 
                                contract for insurance described in 
                                paragraph (2)(B), and such costs are 
                                the subject of a dispute between the 
                                eligible person and an insurer, the 
                                payment of a resolution to an eligible 
                                person shall be reduced by such amount, 
                                and the Resolution Fund shall pay such 
                                amount to the insurer. If such costs 
                                were paid by the insurer on or before 
                                the date the eligible person accepted a 
                                resolution offer made by the Resolution 
                                Fund, payment to an insurer under this 
                                subclause shall be made in equal annual 
                                installments over a period of eight 
                                years, and interest shall not accrue 
                                with respect to such costs. The 
                                Resolution Fund may, in its sole 
                                discretion, make such payments over a 
                                shorter period if the aggregate costs 
                                do not exceed $50,000.
                    (C) Resolution offer rejected; litigation of 
                insurance claims.--
                            (i) Admissibility of resolution offer.--No 
                        resolution offered by the Resolution Fund shall 
                        be admissible in any legal action brought by an 
                        eligible person against an insurer or by an 
                        insurer against an eligible person.
                            (ii) Insurer action against eligible 
                        person.--Any eligible person that rejects a 
                        resolution offer, litigates a claim with 
                        respect to eligible costs against an insurer, 
                        and obtains a final judgment that is less 
                        favorable than the resolution offered by the 
                        Resolution Fund, shall be liable to such 
                        insurer for 20 percent of the reasonable costs 
                        and legal fees incurred by the insurer in 
                        connection with such litigation after the 
                        resolution was offered to the eligible person. 
                        The district courts of the United States shall 
                        have original jurisdiction of all such actions, 
                        without regard to amount or value. The court 
                        shall reduce any award to an insurer in any 
                        such action by the amount, if any, of such 
                        costs and legal fees recovered by the insurer 
                        pursuant to State law or court rule. Nothing in 
                        this clause shall be construed to limit or 
                        affect in any way the application of State law, 
                        or the rule of any court, to such costs or 
                        legal fees.
                            (iii) Reimbursement to insurer.--In the 
                        case of an eligible person that rejects a 
                        resolution offer, litigates a claim with 
                        respect to eligible costs against one or more 
                        insurers, and obtains a final judgment against 
                        any such insurer, the Resolution Fund--
                                    (I) shall reimburse to such insurer 
                                or insurers the lesser of the amount of 
                                the resolution offer made to the 
                                eligible person or the final judgment; 
                                and
                                    (II) may, if the resolution offer 
                                exceeded the final judgment, reimburse 
                                the insurer or insurers for unrecovered 
                                reasonable costs and legal fees, except 
                                that the total reimbursement under this 
                                subclause may not exceed the amount of 
                                the resolution offer to the eligible 
                                person.
                        Reimbursements pursuant to this clause shall be 
                        subject to such documentation as the Resolution 
                        Fund may require and shall be made by the 
                        Resolution Fund not later than 60 days after 
                        receipt by the Resolution Fund of a complete 
                        request for reimbursement as determined by the 
                        Resolution Fund.
            (6) Payments considered pursuant to insurance contract.--
        Payments made by the Resolution Fund pursuant to a resolution 
        offer shall be deemed payments made by an insurer under the 
        terms and conditions of a contract of insurance or in 
        settlement thereof. Nothing in this paragraph shall be 
        construed to affect in any way the issue of whether the 
        liability limits of a contract of insurance has been satisfied.
            (7) Resolution process not admission of liability.--No 
        provision of this title, and no action by an eligible person 
        undertaken in connection with any provision of this title shall 
        in any way constitute an admission of liability in connection 
        with the disposal of a hazardous substance.
            (8) Regulations.--
                    (A) Procedures and documentation.--Not later than 
                120 days after the date of enactment of this title, the 
                Resolution Fund shall publish in the Federal Register 
                for public comment of not more than 60 days interim 
                final regulations concerning procedures and 
                documentation for the submission of requests for 
                resolution offers and the payment of accepted 
                resolution offers. Not later than 60 days after the 
                close of the public comment period, the Resolution Fund 
                shall publish in the Federal Register final regulations 
                concerning such procedures and documentation, which may 
                be amended by the Resolution Fund from time to time.
                    (B) Other regulations.--The Resolution Fund may 
                prescribe such other regulations, rules and procedures 
                as the Resolution Fund deems appropriate from time to 
                time.
                    (C) Judicial review.--No regulation, rule or 
                procedure prescribed by the Resolution Fund pursuant to 
                this paragraph shall be subject to review by any court 
                except to the extent such regulation, rule or procedure 
                is not consistent with a provision of this title.
    (h) Jurisdiction of Federal Courts.--Notwithstanding section 1349 
of title 28, United States Code:
            (1) The Resolution Fund shall be deemed to be an agency of 
        the United States for purposes of sections 1345 and 1442 of 
        title 28, United States Code.
            (2) All civil actions to which the Resolution Fund is a 
        party shall be deemed to arise under the laws of the United 
        States, and the district courts of the United States shall have 
        original jurisdiction of all such actions, without regard to 
        amount or value.
            (3) Any civil or other action, case or controversy in a 
        court of a State, or in any court other than a district court 
        of the United States, to which the Resolution Fund is a party 
        may at any time before the trial thereof be removed by the 
        Resolution Fund, without the giving of any bond or security, to 
        the district court of the United States for the district and 
        division embracing the place where the same is pending, or, if 
        there is no such district court, to the district court of the 
        United States for the district in which the principal office of 
        the Resolution Fund is located, by following any procedure for 
        removal of causes in effect at the time of such removal.
            (4) No attachment or execution shall be issued against the 
        Resolution Fund or any of its property before final judgment in 
        any State, Federal, or other court.
    (i) Reports.--
            (1) Annual reports.--The Resolution Fund shall report 
        annually to the President and the Congress not later than 
        January 15 of each year on its activities for the prior fiscal 
        year. The report shall include--
                    (A) a financial statement audited by an independent 
                auditor; and
                    (B) a determination of whether the fees and 
                assessments imposed by section        of the Internal 
                Revenue Code of 1986 will be sufficient to meet the 
                anticipated obligations of the Resolution Fund.
            (2) Special reports.--The Resolution Fund shall promptly 
        report to the President and the Congress at any time the 
        Resolution Fund determines that the fees and assessments 
        imposed by section        of the Internal Revenue Code of 1986 
        will be insufficient to meet the anticipated obligations of the 
        Resolution Fund.
    (j) False or Fraudulent Statements or Claims.--
            (1) Criminal penalties.--
                    (A) For purposes of section 287 of title 18, United 
                States Code (relating to false claims), the Resolution 
                Fund shall be considered an agency of the United States 
                and any officer or employee of the Resolution Fund 
                shall be considered a person in the civil service of 
                the United States.
                    (B) For purposes of section 1001 of title 18, 
                United States Code (relating to false statements or 
                entries), the Resolution Fund shall be considered an 
                agency of the United States.
            (2) Civil penalties.--Officers and employees of the 
        Resolution Fund shall be considered officers and employees of 
        the United States for purposes of section 3729 of title 31, 
        United States Code (relating to false claims).

SEC. 803. FINANCIAL STATEMENTS, AUDITS, INVESTIGATIONS AND INSPECTIONS.

    (a) In General.--The financial statements of the Resolution Fund 
shall be prepared in accordance with generally accepted accounting 
principles and shall be audited annually by an independent certified 
public accountant in accordance with the auditing standards issued by 
the Comptroller General. Such auditing standards shall be consistent 
with the private sector's generally accepted auditing standards.
    (b) Investigations and Other Audits.--The Inspector General of the 
Environmental Protection Agency is authorized to conduct such audits 
and investigations as the Inspector General deems necessary or 
appropriate. For purposes of the preceding sentence, the provisions of 
the Inspector General Act of 1978 shall apply to the Resolution Fund 
and to the Inspector General to the same extent as they apply to the 
Environmental Protection Agency.

SEC. 804. STAY OF PENDING LITIGATION.

    (a) In General.--
            (1) Except as provided in this section, enactment of this 
        title operates as a stay, applicable to all persons other than 
        the United States, of the commencement or continuation, 
        including the issuance or employment of process or service of 
        any pleading, motion, or notice, of any judicial, 
        administrative, or other action with respect to claims for 
        indemnity or other claims arising from a contract for insurance 
        described in section 802(g)(2)(A)(ii) concerning insurance 
        coverage for eligible costs as defined in section 
        802(g)(2)(B)(i).
            (2) Nothing in paragraph (1) shall be construed to apply to 
        the extent the issuance or employment of process or service of 
        any pleading, motion, or notice, of any judicial, 
        administrative, or other action with respect to claims for 
        indemnity or other claims does not concern eligible costs (as 
        defined in section 802(g)(2)(B)(i)) or a contract for insurance 
        described in section 802(g)(2)(A)(ii). An eligible person (as 
        defined in section 802(g)(2)(A)) may move to sever claims not 
        involving eligible costs from claims involving eligible costs 
        and may proceed with the prosecution of claims not involving 
        eligible costs.
    (b) Termination of Stay.--
            (1) Pending offer of resolution.--The stay established by 
        subsection (a) shall terminate with respect to an eligible 
        person upon the earlier of--
                    (A) the rejection of a resolution offer by such 
                eligible person pursuant to section 802(g)(5)(A); or
                    (B) the failure of the Resolution Fund to timely 
                fulfill the terms of a resolution offer accepted by 
                such eligible person.
            (2) Expiration of resolution offers.--No stay established 
        by subsection (a) shall be effective after May 31, 2000.
    (c) Other Stays.--Nothing in this section shall be construed to 
limit or affect in any way the discretion of any judicial, 
administrative, or other entity to maintain or impose a stay that is 
not required by subsection (a) but that will otherwise serve the ends 
of justice by staying a judicial, administrative or other action 
pending the acceptance or rejection of a resolution offer pursuant to 
section 802(g)(5)(A).
    (d) Authority of United States Unaffected.--Nothing in this section 
shall be construed to limit or affect in any way the discretion or 
authority of the United States or any party to commence or continue an 
allocation process, cost recovery, or other action pursuant to the 
authority of sections 101-122a of the Comprehensive Environmental 
Response, Compensation and Liability Act (42 U.S.C. 9601-9622a).

SEC. 805. SUNSET PROVISIONS.

    (a) Authority To Accept Requests For Resolution.--The authority of 
the Resolution Fund to accept requests for resolution shall terminate 
after September 30, 1999.
    (b) Authority To Offer Resolutions.--The authority of the 
Resolution Fund to offer resolutions to eligible persons shall 
terminate after March 31, 2000.
    (c) Continuing Obligations.--Nothing in this section shall be 
construed to limit or affect in any way the authority of the Resolution 
Fund--
            (1) to make payments pursuant to resolution offers made on 
        or before March 31, 2000; or
            (2) to reimburse insurers with respect to litigation 
        commenced or continued in connection with a resolution offer 
        made on or before March 31, 2000, that was rejected by an 
        eligible person or not acted upon by an eligible person as 
        provided in section 802(g)(5)(A).

SEC. 806. SOVEREIGN IMMUNITY OF THE UNITED STATES.

    No obligation or liability of the Resolution Fund shall constitute 
an obligation or liability of the United States, or of any department, 
agency, instrumentality, officer, or employee thereof. No person shall 
have a cause of action of any kind against the United States, or any 
department, agency, instrumentality, officer, or employee thereof with 
respect to any obligation, liability, or activity of the Resolution 
Fund.

SEC. 807. EFFECTIVE DATE.

    The provisions of this title shall become effective on the date of 
enactment of this title.

                            TITLE IX--TAXES

SEC. 901. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) Section 59A(e)(1) of the Internal Revenue Code of 1986 (26 
U.S.C. 59A(e)(1)) is amended by striking ``January 1, 1996'' and 
inserting instead ``January 1, 2001''.
    (b) Section 4611(e) of the Internal Revenue Code of 1986 (26 U.S.C. 
4611(e)) is amended--
            (1) in paragraph (1) by striking ``December 31, 1986'' and 
        inserting instead ``December 31, 1995'';
            (2) in paragraph (2)--
                    (A) by striking ``December 31, 1993 or December 31, 
                1994'' and inserting instead ``December 31, 1998 or 
                December 31, 1999'';
                    (B) by striking ``December 31, of 1994 or 1995, 
                respectively'' and inserting instead ``December 31 of 
                1999 or 2000, respectively''; and
                    (C) by striking ``1994 or 1995'' the last place it 
                appears and inserting instead ``1999 or 2000'';
            (3) in paragraph (3)(A), by striking ``January 1, 1987, and 
        ending December 31, 1995'' and inserting instead ``January 1, 
        1996, and ending December 31, 2000''; and
            (4) in paragraph (3)(B)--
                    (A) in the title thereof, by striking ``January 1, 
                1996'' and inserting ``January 1, 2001''; and
                    (B) by striking ``Fund before January 1, 1996'' and 
                inserting instead ``Fund before January 1, 2001''.

SEC. 902. ENVIRONMENTAL FEES AND ASSESSMENTS ON INSURANCE COMPANIES.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
inserting after section      the following new section:

``SEC.   . ENVIRONMENTAL FEES AND ASSESSMENTS ON INSURANCE COMPANIES.

                               [RESERVED]

    (b) Clerical Amendment.--The table of sections for chapter        
of the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to section        the following:

                              ``Sec.   . Environmental Fees and 
                                        Assessments on Insurance 
                                        Companies.''.

SEC. 903. FUNDING PROVISIONS FOR ENVIRONMENTAL INSURANCE RESOLUTION 
              FUND.

    (a) In General.--
            (1) Except as provided in section 802(f)(7) of this Act, 
        all expenditures of the Resolution Fund shall be paid out of 
        the fees and assessments imposed by section      of the 
        Internal Revenue Code.
            (2) Except as may be expressly authorized by the Secretary 
        of the Treasury, all funds of the Resolution Fund shall be 
        maintained in the Treasury of the United States. The Secretary 
        may provide for the disbursement of such funds to the 
        Resolution Fund or on behalf of the Resolution Fund under such 
        procedures, terms and conditions as the Secretary may 
        prescribe.
    (b) Transfer to Resolution Fund.--The Secretary of the Treasury 
shall transfer to the Resolution Fund on October 1 of fiscal years 
1995, 1996, 1997, 1998 and 1999, an amount equal to the fees and 
assessments anticipated to be collected pursuant to section      of the 
Internal Revenue Code of 1986 during the then current fiscal year.
    (c) Adjustments.--In each succeeding fiscal year the Secretary of 
the Treasury shall adjust the amounts transferred pursuant to paragraph 
(2) to reflect actual collections of fees and assessments during the 
prior fiscal year, except that with respect to the transfer made on 
October 1, 1999, the Resolution Fund shall reimburse the Secretary the 
amount of such transfer subsequently determined by the Secretary to 
have exceeded actual collections of fees and assessments during such 
fiscal year.

SEC. 904. RESOLUTION FUND NOT SUBJECT TO TAX.

    The Resolution Fund, including its capital, reserves, surplus, 
security holdings, and income shall be exempt from all taxation now or 
hereafter imposed by the United States (including any territory, 
dependency or possession thereof) or any State, county, municipality or 
local taxing authority.

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