[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2028 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 2028

To assist the States and local governments in assessing and remediating 
  brownfields and encouraging environmental cleanup programs, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 2, 1996

Mr. Lautenberg (for himself, Mr. Baucus, Mr. Reid, Mr. Graham, and Mr. 
   Moynihan) introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To assist the States and local governments in assessing and remediating 
  brownfields and encouraging environmental cleanup programs, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Brownfields and Environmental 
Cleanup Act of 1996''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) past uses of land in the United States for industrial 
        and commercial purposes have created many sites throughout the 
        United States that have environmental contamination;
            (2) Congress and the governments of States and political 
        subdivisions of States have enacted laws to--
                    (A) prevent environmental contamination; and
                    (B) carry out response actions to correct past 
                instances of environmental contamination;
            (3) many sites are minimally contaminated, do not pose 
        serious threats to human health or the environment, and can be 
        satisfactorily remediated expeditiously with little government 
        oversight;
            (4) promoting the assessment, cleanup and redevelopment of 
        contaminated sites could lead to significant environmental and 
        economic benefits, particularly in any case in which a cleanup 
        can be completed quickly and during a period of time that meets 
        short-term business needs;
            (5) the private market demand for sites affected by 
        environmental contamination frequently is reduced, often due to 
        uncertainties regarding liability or potential cleanup costs of 
        innocent landowners, lenders, fiduciaries, and prospective 
        purchasers under Federal law;
            (6) the abandonment or underutilization of affected sites 
        impairs the ability of the Federal Government and the 
        governments of States and political subdivisions of States to 
        provide economic opportunities for the people of the United 
        States, particularly the unemployed and economically 
        disadvantaged;
            (7) the abandonment or underuse of affected sites also 
        results in the inefficient use of public facilities and 
        services, as well as land and other natural resources, and 
        extends conditions of blight in local communities;
            (8) cooperation among Federal agencies, departments and 
        agencies of States and political subdivisions of States, local 
        community development organizations, and current owners and 
        prospective purchasers of affected sites is required to 
        accomplish timely response actions and the redevelopment or 
        reuse of affected sites;
            (9) there is a need for a program to--
                    (A) encourage cleanups of affected sites; and
                    (B) facilitate the establishment and enhancement of 
                programs by States and local governments to foster 
                cleanups of affected site through capitalization of 
                loan programs; and
            (10) there is a need to provide financial incentives and 
        assistance to characterize certain affected sites and 
        facilitate the cleanup of the sites so that the sites may be 
        redeveloped for beneficial uses.
    (b) Purpose.--The purpose of this Act is to create new business and 
employment opportunities through the economic redevelopment of affected 
sites that generally do not pose a serious threat to human health or 
the environment and to stimulate the assessment and cleanup of affected 
sites by--
            (1) encouraging States and local governments to provide for 
        characterization and cleanup of sites that may not be 
        remediated under other environmental laws (including 
        regulations) in effect on the date of enactment of this Act;
            (2) encouraging local governments and private parties, 
        including local community development organizations, to 
        participate in programs, such as State cleanup programs, that 
        facilitate expedited response actions that are consistent with 
        business needs at affected sites;
            (3) directing the Administrator to establish programs that 
        provide financial assistance to--
                    (A) facilitate site assessments of certain affected 
                sites;
                    (B) encourage cleanup of appropriate sites through 
                capitalization of loan programs; and
                    (C) encouraging workforce development in areas 
                adversely affected by contaminated properties; and
            (4) reducing transaction costs and paperwork, and 
        preventing needless duplication of effort and delay at all 
        levels of government.

SEC. 3. DEFINITIONS.

    As used in this Act (unless the context clearly requires 
otherwise):
            (1) Administrative costs.--The term ``administrative 
        costs'' means eligible costs that are not nonadministrative 
        costs.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (3) Affected site.--
            (A) In general.--Except as provided in subparagraph (B), 
        the term ``affected site'' means a facility that has or is 
        suspected of having environmental contamination that--
                            (i) could prevent the timely use, 
                        development, reuse, or redevelopment of the 
                        facility; and
                            (ii) is relatively limited in scope or 
                        severity and can be comprehensively 
                        characterized and readily analyzed.
                    (B) Exceptions.--The term does not include--
                            (i) any facility that is the subject of a 
                        planned or an ongoing response action under the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9601 et seq.), except that the term 
                        includes a facility for which a preliminary 
                        assessment, site investigation or removal 
                        action has been completed and with respect to 
                        which the Administrator has decided not to take 
                        further response action, including cost 
                        recovery action;
                            (ii) any facility included, or proposed for 
                        inclusion, on the National Priorities List 
                        maintained by the Administrator under such Act;
                            (iii) any facility with respect to which a 
                        record of decision, other than a no-action 
                        record of decision, has been issued by the 
                        President under section 104 of the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9604) with respect to the facility;
                            (iv) any facility that is subject to 
                        corrective action under section 3004(u) or 
                        3008(h) of the Solid Waste Disposal Act (42 
                        U.S.C. 6924(u) or 6928(h)) at the time that an 
                        application for loan assistance with respect to 
                        the facility is submitted under this title, 
                        including any facility with respect to which a 
                        corrective action permit or order has been 
                        issued or modified to require the 
                        implementation of corrective measures;
                            (v) any land disposal unit with respect to 
                        which a closure notification under subtitle C 
                        of the Solid Waste Disposal Act (42 U.S.C. 6921 
                        et seq.) has been submitted and closure 
                        requirements have been specified in a closure 
                        plan or permit;
                            (vi) any facility at which there has been a 
                        release of polychlorinated biphenyls and that 
                        is subject to the requirements of the Toxic 
                        Substances Control Act (15 U.S.C. 2601 et 
                        seq.);
                            (vii) any facility with respect to which an 
                        administrative order on consent or a judicial 
                        consent decree requiring cleanup has been 
                        entered into by the President and is still in 
                        effect under--
                                    (I) the Comprehensive Environmental 
                                Response, Compensation, and Liability 
                                Act of 1980 (42 U.S.C. 9601 et seq.);
                                    (II) the Solid Waste Disposal Act 
                                (42 U.S.C. 6901 et seq.);
                                    (III) the Federal Water Pollution 
                                Control Act (33 U.S.C. 1251 et seq.);
                                    (IV) the Toxic Substances Control 
                                Act (15 U.S.C. 2601 et seq.); or
                                    (V) title XIV of the Public Health 
                                Service Act (commonly known as the 
                                ``Safe Drinking Water Act'') (42 U.S.C. 
                                300f et seq.);
                            (viii) any facility at which assistance for 
                        response activities may be obtained pursuant to 
                        subtitle I of the Solid Waste Disposal Act (42 
                        U.S.C. 6991 et seq.) from the Leaking 
Underground Storage Tank Trust Fund established by section 9508 of the 
Internal Revenue Code of 1986; and
                            (ix) a facility owned or operated by a 
                        department, agency or instrumentality of the 
                        United States, except for lands held in trust 
                        by the United States for Indian tribes.
            (4) Contaminant.--The term ``contaminant'' includes any 
        hazardous substance (as defined in section 101(14) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(14)).
            (5) Current owner.--The term ``current owner'' means, with 
        respect to a voluntary cleanup, an owner of an affected site or 
        facility at the time of the cleanup.
            (6) Disposal.--The term ``disposal'' has the meaning 
        provided the term in section 1004(3) of the Solid Waste 
        Disposal Act (42 U.S.C. 6903(3)).
            (7) Environment.--The term ``environment'' has the meaning 
        provided the term in section 101(8) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601(8)).
            (8) Environmental contamination.--The term ``environmental 
        contamination'' means the existence at a facility of 1 or more 
        contaminants that may pose a threat to human health or the 
        environment.
            (9) Facility.--The term ``facility'' has the meaning 
        provided the term in section 101(9) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601(9)).
            (10) Grant.--The term ``grant'' includes a cooperative 
        agreement.
            (11) Ground water.--The term ``ground water'' has the 
        meaning provided the term in section 101(12) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(12)).
            (12) Indian tribe.--The term ``Indian tribe'' has the 
        meaning provided the term in section 101(36) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(36)).
            (13) Local government.--The term ``local government'' has 
        the meaning provided the term ``unit of general local 
        government'' in the first sentence of section 102(a)(1) of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 
        5302(a)(1)), except that the term includes Indian tribe.
            (14) Natural resources.--The term ``natural resources'' has 
        the meaning provided the term in section 101(16) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(16)).
            (15) Nonadministrative costs.--The term ``nonadministrative 
        costs'' includes the costs of--
                    (A) inventorying and classifying properties with 
                probable contamination;
                    (B) oversight for a cleanup at an affected site by 
                a contractor, current owner, or prospective purchaser;
                    (C) identifying the probable extent and nature of 
                environmental contamination at the affected site, and 
                the preferred manner of carrying out a cleanup at the 
                affected site;
                    (D) the cleanup, including onsite and offsite 
                treatment of contaminants; and
                    (E) monitoring ground water or other natural 
                resources at the affected site.
            (16) Owner.--The term ``owner'' has the meaning provided 
        the term in section 101(20) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(20)).
            (17) Person.--The term ``person'' has the meaning provided 
        the term in section 101(21) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(21)).
            (18) Prospective purchaser.--The term ``prospective 
        purchaser'' means a prospective purchaser of an affected site.
            (19) Release.--The term ``release'' has the meaning 
        provided the term in section 101(22) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601(22)).
            (20) Response action.--The term ``response action'' has the 
        meaning provided the term ``response'' in section 102(25) of 
        such Act (42 U.S.C. 9601(25)).
            (21) Site characterization.--
                    (A) In general.--The term ``site characterization'' 
                means an investigation that determines the nature and 
                extent of a release or potential release of a hazardous 
                substance at a site and meets the requirements referred 
                to in subparagraph (B).
                    (B) Investigation.--For the purposes of this 
                paragraph, an investigation that meets the requirements 
                of this subparagraph--
                            (i) shall include--
                                    (I) an onsite evaluation; and
                                    (II) sufficient testing, sampling, 
                                and other field data gathering 
                                activities to accurately determine 
                                whether the site is contaminated and 
                                the threats to human health and the 
                                environment posed by the release of 
                                contaminants at the site; and
                            (ii) may also include--
                                    (I) review of existing information 
                                regarding the site and previous uses 
                                (available at the time of the review); 
                                and
                                    (II) an onsite evaluation, if 
                                appropriate.
            (22) State.--The term ``State'' has the meaning provided 
        the term under section 101(27) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601(27)).

       TITLE I--BROWNFIELD REMEDIATION AND ENVIRONMENTAL CLEANUP

SEC. 101. SITE CHARACTERIZATION GRANT PROGRAM.

    (a) In General.--The Administrator shall establish a program to 
provide grants to local governments to inventory brownfield sites and 
to conduct site characterizations of affected sites at which cleanups 
are being conducted or are proposed to be conducted under a State 
voluntary cleanup program, State superfund program, or other State 
cleanup program.
    (b) Scope of Program.--
            (1) Grant awards.--In carrying out the program established 
        under subsection (a), the Administrator may award a grant to 
        the head of each local government that submits to the 
        Administrator an application (that is approved by the 
        Administrator) to conduct an inventory of sites and a site 
        characterization at an affected site or sites within the 
        jurisdiction of the local government.
            (2) Grant application.--An application for a grant under 
        this section shall include, at a minimum, each of the 
        following:
                    (A) An identification of the brownfield areas for 
                which assistance is sought and a description of the 
                effect of the brownfields on the community, including a 
                description of the nature and extent of any known or 
                suspected environmental contamination within the areas.
                    (B) The need for Federal support.
                    (C) A demonstration of the potential of the 
                assistance to stimulate economic development, including 
                the extent to which the assistance will stimulate the 
                availability of other funds for site characterization, 
                site identification, or environmental remediation and 
                subsequent redevelopment of the areas in which eligible 
                brownfields sites are situated.
                    (D) The existing local commitment, which shall 
                include a community involvement plan that demonstrates 
                meaningful community involvement.
                    (E) A plan that shows how the site 
                characterization, site identification, or environmental 
                remediation and subsequent development shall be 
                implemented, including an environmental plan that 
                ensures the use of sound environmental procedures, an 
                explanation of the existing appropriate government 
                authority and support for the project, proposed funding 
                mechanisms for any additional work, and the proposed 
                land ownership plan.
                    (F) A statement on the long-term benefits and the 
                sustainability of the proposed project that includes 
                the national replicability and measures of success of 
                the project and, to the extent known, the potential of 
                the plan for the areas in which eligible brownfields 
                sites are situated to stimulate economic development of 
                the area on completion of the environmental 
                remediation.
                    (G) A statement that describes how the proposed 
                site inventory and characterization program will 
                analyze the extent to which the project or projects 
                will reduce potential health and environmental threats 
                caused by the presence of or potential releases of 
                contaminants at or from the site or sites.
                    (H) A plan for the distribution of the grant monies 
                among sites within the jurisdiction of the State or 
                local government, including mechanisms to ensure a fair 
                distribution of the grant monies.
                    (I) Such other factors as the Administrator 
                considers relevant to carry out the purposes of this 
                title.
            (3) Approval of application.--
                    (A) In general.--In making a decision whether to 
                approve an application submitted under paragraph (1) 
                the Administrator shall consider the criteria in the 
                application, and--
                            (i) the financial need of the State or 
                        local government for funds to conduct a 
                        characterization of the site or sites;
                            (ii) the demonstrable potential of the 
                        affected site or sites for stimulating economic 
                        development on completion of the cleanup of the 
                        affected site if the cleanup is necessary;
                            (iii) to the extent information is 
                        available, the estimated fair market value of 
                        the site or sites (4) after cleanup;
                            (iv) to the extent information is 
                        available, other economically viable, 
                        commercial activity on real property--
                                    (I) located within the immediate 
                                vicinity of the affected site at the 
                                time of consideration of the 
                                application; or
                                    (II) projected to be located within 
                                the immediate vicinity of the affected 
                                site by the date that is 5 years after 
                                the date of the consideration of the 
                                application;
                            (v) the potential of the affected site for 
                        creating new business and employment 
                        opportunities on completion of the cleanup of 
                        the site;
                            (vi) whether the affected site is located 
                        in an economically distressed community; and
                            (vii) such other factors as the 
                        Administrator considers relevant to carry out 
                        the purposes of the grant program under this 
                        section.
                    (B) Grant conditions.--As a condition for awarding 
                a grant under this section, the Administrator may, on 
                the basis of the criteria considered under subparagraph 
                (A), attach such conditions to the grant award as the 
                Administrator determines appropriate.
            (4) Grant amount.--The amount of a grant awarded to any 
        local government under subsection (a) for characterization of 
        an affected site or sites shall not exceed $200,000.
            (5) Termination of grants.--If the Administrator determines 
        that a local government that receives a grant under this 
        subsection is in violation of a condition of a grant award 
        referred to in paragraph (3), the Administrator may terminate 
        the grant made to the local government and require full or 
        partial repayment of the grant award.

SEC. 102. ECONOMIC REDEVELOPMENT ASSISTANCE GRANTS FOR LOAN PROGRAMS.

    (a) Establishment of Program.--The Administrator shall establish a 
program to provide grants to be used by State or local governments to 
capitalize loan programs for the cleanup of affected sites. These loans 
may be provided by the State or local government to finance cleanups of 
affected sites by the State or local government, or by an owner or a 
prospective purchaser of an affected site (including a local 
government) at which a cleanup is being conducted or is proposed to be 
conducted under Federal or State authority, including a State voluntary 
cleanup program.
    (b) Scope of Program.--
            (1) In general.--
                    (A) Grants.--The Administrator may award a grant to 
                a local or State government that is an eligible 
                applicant described in subsection (a)(1) that submits 
                an application to the Administrator that is approved by 
                the Administrator. The grant monies shall be used by 
                the local or State government to capitalize a loan fund 
                to be used for cleanup of an affected site or affected 
                sites.
                    (B) Grant application.--An application for a grant 
                under this section shall be in such form as the 
                Administrator determines appropriate. At a minimum, the 
                application submitted by the State or local government 
                to establish a revolving loan program shall include the 
                following:
                            (i) Insofar as the sites within their 
                        jurisdiction have been identified and 
                        information as to the contaminated sites is 
                        known, a description of the affected site or 
                        sites, including the nature and extent of any 
                        known or suspected environmental contamination 
                        at the affected site or sites.
                            (ii) Identification of the criteria to be 
                        used by the local or State government in 
                        providing for loans under the program. This 
                        criteria shall include the financial standing 
                        of the applicants for the loans, the use to 
                        which the loans will be put, and the provisions 
                        to be used to ensure repayment of the funds. 
                        These criteria shall also include:
                                    (I) A complete description of the 
                                financial standing of the applicant 
                                that includes a description of the 
                                assets, cash flow, and liabilities of 
                                the applicant.
                                    (II) A written certification that 
                                attests that the applicant has 
                                attempted, and has been unable, to 
                                secure financing from a private lending 
                                institution for the cleanup action that 
                                is the subject of the loan application.
                                    (III) The proposed method, and 
                                anticipated period of time required, to 
                                clean up the environmental 
                                contamination at the affected site.
                                    (IV) An estimate of the proposed 
                                total cost of the cleanup to be 
                                conducted at the site.
                                    (V) An analysis that demonstrates 
                                the potential of the affected site for 
                                simulating economic development on 
                                completion of the cleanup of the site.
            (2) Grant approval.--In determining whether to award a 
        grant under this section, the Administrator shall consider--
                    (A) the need of the local or State government for 
                financial assistance to clean up the affected site or 
                sites that are the subject of the application, taking 
                into consideration the financial resources available to 
                the local or State government;
                    (B) the ability of the local or State government to 
                ensure that the applicants repay the loans in a timely 
                manner;
                    (C) the extent to which the cleanup of the affected 
                site or sites would reduce health and environmental 
                risks caused by the release of contaminants at, or 
                from, the affected site or sites;
                    (D) the demonstrable potential of the affected site 
                or sites for stimulating economic development on 
                completion of the cleanup;
                    (E) the demonstrated ability of the local or State 
                government to administer such a loan program;
                    (F) the demonstrated experience of the local or 
                State government regarding brownfields and the reuse of 
                contaminated land, including whether or not the 
                government has received grant monies under the 
                Comprehensive Environmental Response, Compensation, and 
                Liability Act of 1980 (42 U.S.C. 9601 et seq.) to 
                characterize brownfields sites provided however that 
                applicants who have not previously received such grant 
                monies may also be considered for awards under this 
                section;
                    (G) the efficiency of having the loan administered 
                by the applicant entity level of government;
                    (H) the experience of administering any loan 
                programs by the entity, including the loan repayment 
                rates;
                    (I) the demonstrations made regarding the ability 
                of the local or State government to ensure a fair 
                distribution of grant monies among sites within their 
                jurisdiction; and
                    (J) such other factors as the Administrator 
                considers relevant to carry out the purposes of the 
                loan program established under this section.
            (3) Grant amount.--The amount of a grant made to a local or 
        State applicant under this section shall not exceed $500,000.
            (4) State approval.--Each application for a grant under 
        this section shall, as a condition for approval by the 
        Administrator, include a written statement by the local or 
        State government that cleanups to be funded under their loan 
        programs shall be conducted under the auspices of and compliant 
        with the State voluntary cleanup program or State Superfund 
        program or Federal authority, and that--
                    (A) the cleanup or proposed voluntary cleanup is 
                cost-effective; and
                    (B) the estimated total cost of the cleanup is 
                reasonable.
    (c) Grant Agreements.--Each grant under this section shall be made 
pursuant to a grant agreement. At a minimum, the grant agreement shall 
include provisions that ensure the following:
            (1) The grant recipient shall include in all loan 
        agreements a requirement that the loan recipient shall comply 
        with all applicable Federal and State laws applicable to the 
        cleanup and shall ensure that the cleanup is protective of 
        human health and the environment.
            (2) The local or State government shall require and ensure 
        repayment of the loan consistent with this title.
            (3) The State or local government shall use the funds 
        solely for purposes of establishing and capitalizing a loan 
        program pursuant to the provisions of this title and of 
        cleaning up the environmental contamination at the affected 
        site or sites.
            (4) The State or local government shall require in each 
        loan agreement, and take necessary steps to ensure, that the 
        loan recipient shall use the loan funds solely for the purposes 
        stated in paragraph (3), and shall require the return of any 
        excess funds immediately on a determination by the appropriate 
        State or local official that the cleanup has been completed.
            (5) The funds shall not be transferable, unless the 
        Administrator agrees to the transfer in writing.
            (6) Lien.--
                    (A) In general.--A lien in favor of the State shall 
                arise on the contaminated property subject to a loan 
                under this section. The lien shall cover all real 
                property included in the legal description of the 
                property at the time the loan agreement provided for in 
                this section is signed, and all rights to the property, 
                and shall continue until the terms and conditions of 
                the loan agreement have been fully satisfied. The lien 
                shall arise at the time a security interest is 
                appropriately recorded in the real property records of 
                the appropriate office of the State, county, or other 
                governmental subdivision, as designated by State law, 
                in which the real property subject to the lien is 
                located, and shall be subject to the rights of any 
                purchaser, holder of a security interest, or judgment 
                lien creditor whose interest is or has been perfected 
                under applicable State law before the notice has been 
                filed in the appropriate office within the State, 
                county, or other governmental subdivision, as 
                designated by State law, in which the real property 
                subject to the lien is located.
                    (B) Definitions.--In this paragraph, the terms 
                ``security interest'' and ``purchaser'' have the 
                meanings provided in section 6323(h) of the Internal 
                Revenue Code of 1986.
            (7) Such other terms and conditions that the Administrator 
        determines to be necessary to protect the financial interests 
        of the United States or to protect human health and the 
        environment.
    (e) Audits.--The Inspector General of the Environmental Protection 
Agency shall audit a portion of the grants awarded under this section 
to ensure that all funds are used for the purposes set forth in this 
section. The result of the audit shall be taken into account in 
awarding any future grant monies to the entity of State or local 
government.

SEC. 103. REGULATIONS.

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

SEC. 104. ECONOMIC REDEVELOPMENT GRANTS.

    (a) Expenditures From the Superfund.--Amounts in the Superfund 
shall be made available, consistent with and for the purposes of 
carrying out the grant program established under sections 101 and 102.
    (b) Authority To Award Grants.--There are authorized to be 
appropriated from the Superfund, as grants to local and State 
governments as provided for in sections 101 and 102, an amount equal to 
$25,000,000 for each of fiscal years 1997, 1998, 1999, 2000, and 2001.

SEC. 105. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Site Characterization Program.--There are authorized to be 
appropriated to the Environmental Protection Agency to carry out 
section 101, an amount not to exceed $10,000,000 for each of fiscal 
years 1997 through 2001.
    (b) Economic Redevelopment Assistance Program.--There are 
authorized to be appropriated to the Environmental Protection Agency to 
carry out section 102 an amount not to exceed $15,000,000 for each of 
fiscal years 1997 through 2001.
    (c) Availability of Funds.--The amounts appropriated pursuant to 
this section shall remain available until expended.

SEC. 106. REPORTS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and not later than January 31 of each of the 3 calendar 
years thereafter, the Administrator shall prepare and submit a report 
describing the achievements of each program established under this 
title to--
            (1) the Committee on Environment and Public Works of the 
        Senate; and
            (2) the Committee on Energy and Commerce of the House of 
        Representatives.
    (b) Contents of Report.--Each report shall, with respect to each of 
the programs established under this title, include a description of--
            (1) the number of applications received by the 
        Administrator during the preceding calendar year;
            (2) the number of applications approved by the 
        Administrator during the preceding calendar year; and
            (3) the allocation of assistance under sections 101 and 102 
        among the States and local governments for assistance under 
        this title.

SEC. 107. FUNDING.

    (a) Administrative Cost Limitation.--Not more than 15 percent of 
the amount of a grant made pursuant to this title may be used for 
administrative costs. No grant made pursuant to this title may be used 
to pay for fines or penalties owed to a State or the Federal 
Government, or for Federal cost-sharing requirements.
    (b) Other Limitations.--Funds made available to a State or local 
government pursuant to the grant programs established under sections 
101 and 102 shall be used only for inventorying, assessing, and 
characterizing sites as authorized by this Act, and for capitalizing a 
loan program as authorized by this Act. Funds made available under this 
title may not be used to relieve a local government or State of the 
commitment or responsibilities of the local government or State under 
State law to assist or carry out cleanup actions at affected sites.

SEC. 108. STATUTORY CONSTRUCTION.

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

                    TITLE II--PROSPECTIVE PURCHASERS

SEC. 201. LIMITATIONS ON LIABILITY FOR RESPONSE COSTS FOR PROSPECTIVE 
              PURCHASERS.

    (a) Limitations on Liability.--Section 107 of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9607) is amended by adding at the end the following new 
subsection:
    ``(n) Limitations on Liability for Prospective Purchasers.--
Notwithstanding paragraphs (1) through (4) of subsection (a), a person 
who does not impede the performance of response actions or natural 
resource restoration at a facility shall not be liable under this Act, 
to the extent liability is based solely on subsection (a)(1) for a 
release or threat of release from a facility, and the person is a bona 
fide prospective purchaser of the facility.''.
    (b) Prospective Purchaser and Windfall Lien.--Section 107 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (as amended by subsection (a)) is further amended by inserting 
after subsection (n) the following new subsection:
    ``(o) Prospective Purchaser and Windfall Lien.--
            ``(1) Lien.--In any case in which there are unrecovered 
        response costs at a facility for which an owner of the facility 
        is not liable by reason of subsection (n), and the conditions 
        described in paragraph (2) are met, the United States shall 
        have a lien upon such facility, or may obtain from the 
        appropriate responsible party or parties, a lien on other 
        property or other assurances of payment satisfactory to the 
        Administrator, for such unrecovered costs. Such lien--
                    ``(A) 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 the property;
                    ``(B) shall arise at the time costs are first 
                incurred by the United States with respect to a 
                response action at the facility;
                    ``(C) shall be subject to the requirements for 
                notice and validity established in paragraph (3) of 
                subsection (l); and
                    ``(D) shall continue until the earlier of 
                satisfaction of the lien or recovery of all response 
                costs incurred at the facility.
            ``(2) Conditions.--The conditions referred to in paragraph 
        (1) are the following:
                    ``(A) Response action.--A response action for which 
                there are unrecovered costs is carried out at the 
                facility.
                    ``(B) Fair market value.--Such response action 
                increases the fair market value of the facility above 
                the fair market value of the facility that existed 180 
                days before the response action was taken.''.
    (c) Section 101 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is amended by 
adding at the end the following new paragraph:
            ``(39) Bona fide prospective purchaser.--The term `bona 
        fide prospective purchaser' means a person who acquires 
        ownership of a facility after the date of enactment of the 
        Brownfields and Environmental Cleanup Act of 1996, or a tenant 
        of such a person, who can establish each of the following by a 
        preponderance of the evidence:
                    ``(A) Disposal prior to acquisition.--All active 
                disposal of hazardous substances at the facility 
                occurred before that person acquired the facility.
                    ``(B) Inquiry.--The person made all appropriate 
                inquiry into the previous ownership and uses of the 
                facility and its real property in accordance with 
                generally accepted good commercial and customary 
                standards and practices. The standards and practices 
                issued by the Administrator pursuant to paragraph 
                (35)(B)(ii) shall satisfy the requirements of this 
                subparagraph. In the case of property for residential 
                or other similar use purchased by a nongovernmental or 
                noncommercial entity, a site inspection and title 
                search that reveal no basis for further investigation 
                satisfy the requirements of this subparagraph.
                    ``(C) Notices.--The person provided all legally 
                required notices with respect to the discovery or 
                release of any hazardous substances at the facility.
                    ``(D) Care.--The person exercised appropriate care 
                with respect to hazardous substances found at the 
                facility by taking reasonable steps to stop on-going 
                releases, prevent threatened future releases of 
                hazardous substances, and prevent or limit human or 
                natural resource exposure to hazardous substances 
                previously released into the environment.
                    ``(E) Cooperation, assistance, and access.--The 
                person provides full cooperation, assistance, and 
                facility access to those persons that are 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.
                    ``(F) Relationship.--The person is not liable, or 
                is not affiliated with any other person that is 
                potentially 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.''.

               TITLE III--FIDUCIARY AND LENDER LIABILITY

SEC. 301. FIDUCIARY LIABILITY.

    (a) Definitions.--Section 101 of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601) (as 
amended by section 201(c)) is amended by adding at the end the 
following:
            ``(40) Fiduciary.--The term `fiduciary'--
                    ``(A) means a person acting for the benefit of 
                another party as a bona fide--
                            ``(i) trustee;
                            ``(ii) executor;
                            ``(iii) administrator of an estate;
                            ``(iv) custodian;
                            ``(v) guardian of estates or guardian ad 
                        litem;
                            ``(vi) court-appointed receiver;
                            ``(vii) conservator;
                            ``(viii) committee of estates of 
                        incapacitated persons or other incapacitated 
                        persons;
                            ``(ix) personal representative; or
                            ``(x) representative in any other capacity 
                        that the Administrator, pursuant to public 
                        notice, determines to be similar to those 
                        listed in clauses (i) through (ix); and
                    ``(B) does not include any person who--
                            ``(i) had a role in establishing a trust, 
                        estate, or fiduciary relationship if such 
                        trust, estate, or fiduciary relationship has no 
                        objectively reasonable or substantial purpose 
apart from the avoidance or limitation of liability under this Act; or
                            ``(ii) is acting as a fiduciary with 
                        respect to a trust or other fiduciary estate 
                        that--
                                    ``(I) was not created as part of, 
                                or to facilitate, one or more estate 
                                plans or pursuant to the incapacity of 
                                a natural person; and
                                    ``(II) was organized for the 
                                primary purpose of, or is engaged in, 
                                actively carrying on a trade or 
                                business for profit.
            ``(41) Fiduciary capacity.--The term `fiduciary capacity', 
        in reference to an act of a person with respect to a vessel or 
        facility, means a capacity in which the person holds title to a 
        vessel or facility, or otherwise has control of or an interest 
        in a vessel or facility, pursuant to the exercise of the 
        responsibilities of the person as a fiduciary.''.
    (b) Liability of Fiduciaries.--Title I of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 et seq.) is amended by adding at the end the following new 
section:

``SEC. 127. LIABILITY OF FIDUCIARIES.

    ``(a) In General.--The liability of a fiduciary that is liable 
under any other provision of this Act for the release or threatened 
release of a hazardous substance at, from, or in connection with a 
vessel or facility held in a fiduciary capacity, may not exceed the 
assets held in such fiduciary capacity that are available to indemnify 
the fiduciary.
    ``(b) Exclusion.--Subsection (a) does not apply to the extent that 
a person is liable under this Act independent of such person's 
ownership or actions taken in a fiduciary capacity.
    ``(c) Limitation.--Subsections (a) and (d) shall not limit the 
liability of a fiduciary whose failure to exercise due care caused or 
contributed to the release of a hazardous substance.
    ``(d) Safe Harbor.--A fiduciary shall not be liable in its personal 
capacity under this Act for--
            ``(1) undertaking or directing another to undertake a 
        response action under section 107(d)(1) or under the direction 
        of an on-scene coordinator;
            ``(2) undertaking or directing another to undertake any 
        other lawful means of addressing hazardous substances in 
        connection with the vessel or facility;
            ``(3) terminating the fiduciary relationship;
            ``(4) including in the terms of a fiduciary agreement 
        covenant, warranty, or other terms or conditions that relate to 
        compliance with environmental laws, or monitoring or enforcing 
        such terms;
            ``(5) monitoring or undertaking one or more inspections of 
        the vessel or facility;
            ``(6) providing financial or other advice or counseling to 
        any other party to the fiduciary relationship, including the 
        settler or beneficiary;
            ``(7) restructuring, renegotiating, or otherwise altering a 
        term or condition of the fiduciary relationship;
            ``(8) acting in a fiduciary capacity with respect to a 
        vessel or facility that was contaminated before the fiduciary's 
        period of service; or
            ``(9) declining to take any of the actions described in 
        paragraphs (2) through (8).
    ``(e) Savings Clause.--Nothing in this section shall affect the 
rights or immunities or other defenses that are available under this 
Act or other applicable law to any person subject to the provisions of 
this section. Nothing in this section shall create any liability for 
any party. Nothing in this section shall create a private right of 
action against a fiduciary or any other party.
    ``(f) No Effect on Certain Persons.--Nothing in this section shall 
be construed to affect the liability, if any, of a person who--
            ``(1)(A) acts in a capacity other than a fiduciary 
        capacity; and
            ``(B) directly or indirectly benefits from a trust or 
        fiduciary relationship; or
            ``(2) who--
                    ``(A) is a beneficiary and a fiduciary with respect 
                to the same fiduciary estate; and
                    ``(B) as a fiduciary, receives benefits that exceed 
                customary or reasonable compensation, and incidental 
                benefits, permitted under other applicable law.
    ``(g) Regulatory Authority.--
            ``(1) In general.--The Administrator may--
                    ``(A) issue such regulations as the Administrator 
                deems necessary to carry out this section; and
                    ``(B) delegate and assign any duties or powers 
                imposed upon or assigned to the Administrator by this 
                section, including the authority to issue regulations.
            ``(2) Authority to clarify.--The authority under paragraph 
        (1) includes authority to clarify or interpret all terms, 
        including those used in this section, and to implement any 
        provision of this section.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any claim that has not been fully adjudicated as of the date 
of enactment of this Act.

SEC. 302. LIABILITY OF LENDERS.

    (a) Definition of Participation in Management.--Section 101(20) of 
the Comprehensive Environmental Response, Liability, and Compensation 
Act of 1980 (42 U.S.C. 9601(20)) is amended--
            (1) in subparagraph (A), by striking the second sentence;
            (2) by amending paragraph (A)(iii) to read as follows:
                            ``(iii) any person who owned, operated or 
                        otherwise controlled activities at a vessel or 
                        facility immediately before the United States 
                        (including any department, agency or 
                        instrumentality), a unit of State or local 
                        government, or their agents or appointees, 
                        acquired title or control of such vessel or 
                        facility in any of the following ways:
                                    ``(I) through bankruptcy, tax 
                                delinquency, abandonment, or escheat;
                                    ``(II) through forclosure that is 
                                connected with the provision of loans, 
                                discounts, advances, guarantees, 
                                insurance, or other financial 
                                assistance, if the United States or 
                                unit of State or local government meets 
                                the requirements of paragraph (F)(ii) 
                                (I) and (II) of this section;
                                    ``(III) through the exercise of 
                                statutory receivership or 
                                conservatorship authority, including 
                                any liquidating or winding up the 
                                affairs of any person or any subsidiary 
                                thereof, if the governmental entity did 
                                not participate in management of the 
                                vessel or facility prior to acquiring 
                                title or control and meets the 
                                requirements of paragraph (F)(ii)(II) 
                                of this section;
                                    ``(IV) through the exercise of any 
                                seizure or forfeiture authority;
                                    ``(V) in any civil, criminal, or 
                                administrative enforcement proceeding, 
                                whether by order or settlement, in 
                                which an interest in a vessel or 
                                facility is conveyed to satisfy a claim 
of the governmental entity, and the governmental entity meets the 
requirements of this section; and
                                    ``(VI) temporarily in connection 
                                with a law enforcement operation.'';
            (3) by amending paragraph (D) to read as follows:
                    ``(D)(i) The term `owner or operator' does not 
                include the United States (including any department, 
                agency, or instrumentality) or a unit of State or local 
                government that acquires title or control of a vessel 
                or facility in a manner described in paragraph 
                (A)(iii), or in any other circumstances in which the 
                government involuntary acquires title by virtue of its 
                function as sovereign.
                    ``(ii) Notwithstanding subparagraph (i), if the 
                United States or a unit of State or a unit of State or 
                local government caused or contributed to the release 
                or threatened release of a hazardous substance from the 
                facility, this Act (including section 107) shall apply 
                in the same manner and to the same extent, procedurally 
                and substantively, as the Act does to any 
                nongovernmental entity.''; and
            (4) by adding at the end the following:
                    ``(E) Exclusion of persons not participants in 
                management.--
                            ``(i) Indicia of ownership to protect 
                        security interest.--The term `owner or 
                        operator' does not include--
                                    ``(I) a person, including a 
                                successor or assign of such person, 
                                who, without participating in the 
                                management of a vessel or facility, 
                                holds indicia of ownership primarily to 
                                protect such person's security interest 
                                in the vessel or facility; or
                                    ``(II) a successor or assign of a 
                                person described in subclause (I).
                            ``(ii) Nonparticipation in management prior 
                        to foreclosure.--The term `owner or operator' 
                        does not include a person that forecloses on a 
                        vessel or a facility even if such person 
                        forecloses on such vessel or facility, sells, 
                        re-leases (in the case of a lease finance 
                        transaction), or liquidates the vessel or 
                        facility, maintains business activities, winds 
                        up operations, or undertakes any response 
                        action under section 107(d)(1) or under the 
                        direction of an on-scene coordinator, with 
                        respect to the vessel or facility, or takes 
                        other measures to preserve, protect, or prepare 
                        the vessel or facility prior to sale or 
                        disposition, if--
                                    ``(I) the person did not 
                                participate in management prior to 
                                foreclosure; and
                                    ``(II) such person seeks to sell, 
                                re-lease (in the case of a lease 
                                finance transaction), or otherwise 
                                divest such vessel or facility at the 
                                earliest practical, commercially 
                                reasonable time, on commercially 
                                reasonable terms, taking into account 
                                market conditions and legal and 
                                regulatory requirements.
                    ``(F) Participation in management.--For purposes of 
                subparagraph (E)--
                            ``(i) the term `participate in management' 
                        means actually participating in the management 
                        or operational affairs of the vessel or 
                        facility, and does not include merely having 
the capacity to influence, or the unexercised right to control, vessel 
or facility operations;
                            ``(ii) a person shall be considered to 
                        `participate in management' only if, while the 
                        borrower is still in possession of the vessel 
                        or facility encumbered by the security 
                        interest, such person--
                                    ``(I) exercises decisionmaking 
                                control over the environmental 
                                compliance of a borrower, such that the 
                                person has undertaken responsibility 
                                for the hazardous substance handling or 
                                disposal practices of the borrower; or
                                    ``(II) exercises control at a level 
                                comparable to that of a manager of the 
                                enterprise of the borrower, such that 
                                the person has assumed or manifested 
                                responsibility for the overall 
                                management of the enterprise 
                                encompassing day-to-day decisionmaking 
                                with respect to environmental 
                                compliance, or with respect to all or 
                                substantially all of the operational 
                                aspects (as distinguished from 
                                financial or administrative aspects) of 
                                the enterprise, other than 
                                environmental compliance;
                            ``(iii) the term `participate in 
                        management' does not include conducting an act 
                        or failing to act prior to the time that a 
                        security interest is created in a vessel or 
                        facility; and
                            ``(iv) the term `participate in management' 
                        does not include--
                                    ``(I) holding such a security 
                                interest or, prior to foreclosure, 
                                abandoning or releasing such a security 
                                interest;
                                    ``(II) including in the terms of an 
                                extension of credit, or in a contract 
                                or security agreement relating to such 
                                an extension, covenant, warranty, or 
                                any other term or condition that 
                                relates to environmental compliance;
                                    ``(III) monitoring or enforcing the 
                                term or condition of the extension of 
                                credit or security interest;
                                    ``(IV) monitoring or undertaking 1 
                                or more inspections of the vessel or 
                                facility;
                                    ``(V) requiring the borrower to 
                                undertake response action or other 
                                lawful means of addressing the release 
                                or threatened release of a hazardous 
                                substance in connection with the vessel 
                                or facility prior to, during, or upon 
                                the expiration of the term of the 
                                extension of credit;
                                    ``(VI) providing financial or other 
                                advice or counseling in an effort to 
                                mitigate, prevent, or cure default or 
                                diminution in the value of the vessel 
                                or facility;
                                    ``(VII) restructuring, 
                                renegotiating, or otherwise agreeing to 
                                alter a term or condition of the 
                                extension of credit or security 
                                interest;
                                    ``(VIII) exercising other remedies 
                                that may be available under applicable 
                                law for the breach of any term or 
                                condition of the extension of credit or 
                                security agreement; or
                                    ``(IX) conducting a response action 
                                under section 107(d)(1) or under the 
                                direction of an on-scene coordinator,
                        if such actions do not rise to the level of 
                        participating in management, as defined in 
                        clauses (i) and (ii).
                    ``(G) Other terms.--As used in subparagraph (E), 
                subparagraph (F), and this subparagraph, the following 
                definitions shall apply:
                            ``(i) Borrower.--The term `borrower' means 
                        a person whose vessel or facility is encumbered 
                        by a security interest.
                            ``(ii) Extension of credit.--The term 
                        `extension of credit' includes a lease finance 
                        transaction--
                                    ``(I) in which the lessor does not 
                                initially select the leased vessel or 
                                facility and does not during the lease 
                                term control the daily operations or 
                                maintenance of the vessel or facility; 
                                or
                                    ``(II) that conforms with 
                                regulations issued by the appropriate 
                                Federal banking agency or the 
                                appropriate State bank supervisor (as 
                                those terms are defined in section 3 of 
                                the Federal Deposit Insurance Act (12 
                                U.S.C. 1813)) or with regulations 
                                issued by the National Credit Union 
                                Administration Board, as appropriate.
                            ``(iii) Financial or administrative 
                        aspect.--The term `financial or administrative 
                        aspect' includes a function such as a function 
                        of a credit manager, accounts payable officer, 
                        accounts receivable officer, personnel manager, 
                        comptroller, or chief financial officer, or any 
                        similar function.
                            ``(iv) Foreclosure; foreclose.--The term 
                        `foreclosure' and `foreclose' mean, 
                        respectively, acquiring, and to acquire from a 
                        nonaffiliated party for subsequent disposition, 
                        a vessel or facility through--
                                    ``(I) purchase at sale under a 
                                judgment or decree, a power of sale, a 
                                nonjudicial foreclosure sale, or from a 
                                trustee, deed in lieu of foreclosure, 
                                or similar conveyance, or through 
                                repossession, if such vessel or 
                                facility was security for an extension 
                                of credit previously contracted;
                                    ``(II) conveyance pursuant to an 
                                extension of credit previously 
                                contracted, including the termination 
                                of a lease agreement; or
                                    ``(III) any other formal or 
                                informal manner by which the person 
                                acquires, for subsequent disposition, 
                                possession of collateral in order to 
                                protect the security interest of the 
                                person.
                            ``(v) Operational aspect.--The term 
                        `operational aspect' includes a function such 
                        as a function of a facility or plant manager, 
                        operations manager, chief operating officer, or 
                        chief executive officer.
                            ``(vi) Security interest.--The term 
                        `security interest' includes a right under a 
                        mortgage, deed of trust, assignment, judgment 
                        lien, pledge, security agreement, factoring 
                        agreement, or lease, or any other right 
                        accruing to a person to secure the repayment of 
                        money, the performance of a duty, or some other 
                        obligation.''.
    (b) Effective Date.--The amendments made by this section shall be 
applicable with respect to any claim that has not been finally 
adjudicated as of the date of enactment of this Act.
    (c) Lender Liability Rule.--(1) Effective on the date of enactment 
of this section, the final rule issued by the Administrator of the 
Environmental Protection Agency on April 29, 1992 (57 Stat. Fed. Reg. 
18344), shall be deemed to have been validly issued pursuant to the 
authority of the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980, and to have been effective according to the 
final rule's terms. No additional administrative or judicial 
proceedings shall be necessary with respect to such final rule.
    (2) Notwithstanding section 113(a) of the Comprehensive 
Environmental Response, Compensation and Liability Act of 1980, no 
court shall have jurisdiction to review the final rule issued by the 
Administrator of the Environmental Protection Agency on April 29, 1992 
(57 Fed. Reg. 18344).
    (3) Nothing in this subsection shall be construed to limit the 
authority of the President or his delegate to amend the final rule 
issued by the Administrator of the Environmental Protection Agency on 
April 29, 1992 (57 Fed. Reg. 18344), in accordance with applicable 
provisions of law.
    (d) Regulatory Authority.--
            (1) In general.--The Administrator may--
                    (A) issue such regulations as the Administrator 
                deems necessary to carry out the amendments made by 
                this section; and
                    (B) delegate and assign any duties or powers 
                imposed upon or assigned to the Administrator by the 
                amendments made by this section, including the 
                authority to issue regulations.
            (2) Authority to clarify.--The authority under paragraph 
        (1) includes authority to clarify or interpret all terms, 
        including those used in this section, and to implement any 
        provision of the amendments made by this section.

                     TITLE IV--INNOCENT LANDOWNERS

SEC. 401. INNOCENT LANDOWNERS.

    (a) Environmental Site Assessment.--Section 107 (as amended by 
section 201(b)) is amended by adding at the end the following new 
subsection:
    ``(p) Innocent Landowners.--
            ``(1) Conduct of environmental assessment.--A person who 
        has acquired real property shall have made all appropriate 
        inquiry within the meaning of subparagraph (B) of section 
        101(35) if the person establishes that, within 180 days prior 
        to the time of acquisition, an environmental site assessment of 
        the real property was conducted which meets the requirements of 
        paragraph (2).
            ``(2) Definition of environmental site assessment.--For 
        purposes of this subsection, the term `environmental site 
        assessment' means an assessment conducted in accordance with 
        the standards set forth in the American Society for Testing and 
        Materials (ASTM) Standard E1527-94, titled `Standard practice 
        for Environmental Site Assessments: Phase I Environmental Site 
        Assessment Process' or with alternative standards issued by 
        rule by the President or promulgated or developed by others and 
        designated by rule by the President. Before issuing or 
        designating alternative standards, the President shall first 
        conduct a study of commercial and industrial practices 
        concerning environmental site assessments in the transfer of 
        real property in the United States. Any such standards issued 
        or designated by the President shall also be deemed to 
        constitute commercially reasonable and generally accepted 
        standards and practices for purposes of this paragraph. In 
        issuing or designating any such standards, the President shall 
        consider requirements governing each of the following:
                    ``(A) Interviews of owners, operators, and 
                occupants of the property to determine information 
                regarding the potential for contamination.
                    ``(B) Review of historical sources as necessary to 
                determine previous uses and occupancies of the property 
                since the property was first developed. For purposes of 
                this subclause, the term `historical sources' means any 
                of the following, if they are reasonably ascertainable: 
                recorded chain of title documents regarding the real 
                property, including all deeds, easements, leases, 
                restrictions, and covenants, aerial photographs, fire 
                insurance maps, property tax files, USGS 7.5 minutes 
                topographic maps, local street directories, building 
                department records, zoning/land use records, and any 
                other sources that identify past uses and occupancies 
                of the property.
                    ``(C) Determination of the existence of recorded 
                environmental cleanup liens against the real property 
                which have arisen pursuant to Federal. State, or local 
                statutes.
                    ``(D) Review of reasonably ascertainable Federal, 
                State, and local government records of sites or 
                facilities that are likely to cause or contribute to 
                contamination at the real property, including, as 
                appropriate, investigation reports for such sites or 
                facilities, records of activities likely to cause or 
                contribute to contamination at the real property, 
                including landfill and other disposal location records, 
                underground storage tank records, hazardous waste 
                handler and generator records and spill reporting 
                records; and such other reasonably ascertainable 
                Federal, State, and local government environmental 
                records which could reflect incidents or activities 
                which are likely to cause or contribute to 
                contamination at the real property.
                    ``(E) A visual site inspection of the real property 
                and all facilities and improvements on the real 
                property and a visual inspection of immediately 
                adjacent properties, including an investigation of any 
                hazardous substance use, storage, treatment, and 
                disposal practices on the property.
                    ``(F) Any specialized knowledge or experience on 
                the part of the defendant.
                    ``(G) The relationship of the purchase price to the 
                value of the property if uncontaminated.
                    ``(H) Commonly known or reasonably ascertainable 
                information about the property.
                    ``(I) The obviousness of the presence or likely 
                presence of contamination at the property, and the 
                ability to detect such contamination by appropriate 
                investigation.
        A record shall be considered to be `reasonably ascertainable' 
        for purposes of this paragraph if a copy or reasonable 
        facsimile of the record is publicly available by request 
        (within reasonable time and cost constraints) and the record is 
        practically reviewable.
            ``(3) Appropriate inquiry.--A person shall not be treated 
        as having made all appropriate inquiry under paragraph (1) 
        unless--
                    ``(A) the person has maintained a compilation of 
                the information reviewed and gathered in the course of 
                the environmental site assessment;
                    ``(B) the person exercised appropriate care with 
                respect to hazardous substances found at the facility 
                by taking reasonable steps to stop on-going releases, 
                prevent threatened future releases of hazardous 
                substances, and prevent or limit human or natural 
                resource exposure to hazardous substances previously 
                released into the environment; and
                    ``(C) the person provides full cooperation, 
                assistance, and facility access to persons authorized 
                to conduct 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.
            ``(4) Definition of contamination.--For the purposes of 
        this subsection and section 101(35), the term `contamination' 
        means an existing release, a past release, or the threat of a 
        release of a hazardous substance.''.
    (b) Section 101(35) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601(35)) is by 
striking subparagraph (B) and inserting the following new subparagraph:
                    ``(B) Knowledge of inquiry requirement.--
                            ``(i) In general.--To establish that the 
                        defendant had no reason to know, as provided in 
                        subparagraph (A)(i), the defendant must have 
undertaken, at the time of the acquisition, all appropriate inquiry (in 
accordance with section 107(p)) into the previous ownership and uses of 
the facility and its real property in accordance with generally 
accepted good commercial and customary standards and practices. For the 
purposes of the preceding sentence and until the Administrator issues 
or designates standards and practices as provided in clause (ii), the 
court shall take into account any specialized knowledge or experience 
on the part of the defendant, the relationship of the purchase price to 
the value of the property if uncontaminated, commonly known or 
reasonably ascertainable information about the property, the 
obviousness of the presence or likely presence of contamination at the 
property, and the ability to detect such contamination by appropriate 
investigation.
                            ``(ii) Rule.--Within 1 year after the date 
                        of enactment of this Act, the Administrator 
                        shall, by rule, issue standards and practices 
                        or designate standards and practices 
                        promulgated or developed by others, that 
                        satisfy the requirements of this subparagraph. 
                        In issuing or designating such standards and 
                        practices, the Administrator shall consider 
                        each of the following:
                                    ``(I) Conduct of an inquiry by an 
                                environmental professional.
                                    ``(II) Inclusion of interviews with 
                                past and present owners, operators, and 
                                occupants of the facility and its real 
                                property for the purpose of gathering 
                                information regarding the potential for 
                                contamination at the facility and its 
                                real property.
                                    ``(III) Inclusion of a review of 
                                historical sources, such as chain of 
                                title documents, aerial photographs, 
                                building department records, and land 
                                use records, to determine previous uses 
                                and occupancies of the real property 
                                since it was first developed.
                                    ``(IV) Inclusion of a search for 
                                recorded environmental cleanup liens, 
                                filed under Federal, State, or local 
                                law, against the facility or its real 
                                property.
                                    ``(V) Inclusion of a review of 
                                Federal, State, and local government 
                                records (such as waste disposal 
                                records), underground storage tank 
                                records, and hazardous waste handling, 
                                generation, treatment, disposal, and 
                                spill records, concerning contamination 
                                at or near the facility or its real 
                                property.
                                    ``(VI) Inclusion of a visual 
                                inspection of the facility and its real 
                                property and of adjoining properties.
                                    ``(VII) Any specialized knowledge 
                                or experience on the part of the 
                                defendant.
                                    ``(VIII) The relationship of the 
                                purchase price to the value of the 
                                property if uncontaminated.
                                    ``(IX) Commonly known or reasonably 
                                ascertainable information about the 
                                property.
                                    ``(X) The obviousness of the 
                                presence or likely presence of 
                                contamination at the property, and the 
                                ability to detect such contamination by 
                                appropriate investigation.
                            ``(iii) Site inspection and title search.--
                        In the case of property for residential use or 
                        other similar use purchased by a 
                        nongovernmental or noncommercial entity, a site 
                        inspection and title search that reveal no 
                        basis for further investigation satisfy the 
                        requirements of this subparagraph.''; and
    (c) Regulatory Authority.--
            (1) In general.--The Administrator may--
                    (A) issue such regulations as the Administrator 
                deems necessary to carry out the amendments made by 
                this section; and
                    (B) delegate and assign any duties or powers 
                imposed upon or assigned to the Administrator by the 
                amendments made by this section, including the 
                authority to issue regulations.
            (2) Authority to clarify.--The authority under paragraph 
        (1) includes authority to clarify or interpret all terms, 
        including those used in this section, and to implement any 
        provision of the amendments made by this section.
                                 <all>