[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 18 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 18

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

 Mr. Lautenberg (for himself, Mr. Baucus, Mr. Reid, Mr. Moynihan, Mr. 
 Graham, Mrs. Boxer, Mr. Wyden, Mr. Levin, Mr. Torricelli, Mr. Breaux, 
 and Mr. Kennedy) 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 
 brownfield sites 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Brownfields and 
Environmental Cleanup Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
       TITLE I--BROWNFIELD REMEDIATION AND ENVIRONMENTAL CLEANUP

Sec. 101. Definitions.
Sec. 102. Inventory and assessment grant program.
Sec. 103. Grants for revolving loan programs.
Sec. 104. Economic redevelopment grants.
Sec. 105. Reports.
Sec. 106. Limitations on use of funds.
Sec. 107. Effect on other laws.
Sec. 108. Regulations.
Sec. 109. Authorizations of appropriations.
                    TITLE II--PROSPECTIVE PURCHASERS

Sec. 201. Limitations on liability for response costs for prospective 
                            purchasers.
                     TITLE III--INNOCENT LANDOWNERS

Sec. 301. Innocent landowners.

SEC. 2. FINDINGS AND PURPOSES.

    (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 
        because of uncertainties regarding liability or potential 
        cleanup costs of innocent landowners and prospective purchasers 
        under Federal law;
            (6) the abandonment or underutilization of brownfield 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 brownfield 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 brownfield sites is required to 
        accomplish timely response actions and the redevelopment or 
        reuse of brownfield sites;
            (9) there is a need to provide financial incentives and 
        assistance to inventory and assess certain brownfield sites and 
        facilitate the cleanup of the sites so that the sites may be 
        redeveloped for beneficial uses; and
            (10) there is a need for a program to--
                    (A) encourage cleanups of brownfield sites; and
                    (B) facilitate the establishment and enhancement of 
                programs by States and local governments to foster 
                cleanups of brownfield sites through capitalization of 
                loan programs.
    (b) Purposes.--The purposes of this Act are to create new business 
and employment opportunities through the economic redevelopment of 
brownfield sites that generally do not pose a serious threat to human 
health or the environment and to stimulate the assessment and cleanup 
of brownfield sites by--
            (1) encouraging States and local governments to provide for 
        the assessment and cleanup of brownfield 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 brownfield sites;
            (3) directing the Administrator of the Environmental 
        Protection Agency to establish programs that provide financial 
        assistance to--
                    (A) facilitate site assessments of certain 
                brownfield sites;
                    (B) encourage cleanup of appropriate brownfield 
                sites through capitalization of loan programs; and
                    (C) encourage 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.

       TITLE I--BROWNFIELD REMEDIATION AND ENVIRONMENTAL CLEANUP

SEC. 101. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Brownfield site.--The term ``brownfield site'' means a 
        facility that has or is suspected of having environmental 
        contamination that--
                    (A) could prevent the timely use, development, 
                reuse, or redevelopment of the facility; and
                    (B) is relatively limited in scope or severity and 
                can be comprehensively assessed and readily analyzed.
            (3) Contaminant.--The term ``contaminant'' includes any 
        hazardous substance (as defined in section 101 of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601)).
            (4) Disposal.--The term ``disposal'' has the meaning given 
        the term in section 1004 of the Solid Waste Disposal Act (42 
        U.S.C. 6903).
            (5) Environment.--The term ``environment'' has the meaning 
        given the term in section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601).
            (6) 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.
            (7) Facility.--The term ``facility'' has the meaning given 
        the term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
            (8) Grant.--The term ``grant'' includes a cooperative 
        agreement.
            (9) Ground water.--The term ``ground water'' has the 
        meaning given the term in section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601).
            (10) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601).
            (11) Local government.--The term ``local government'' has 
        the meaning given 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 an Indian tribe.
            (12) Natural resources.--The term ``natural resources'' has 
        the meaning given the term in section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601).
            (13) Owner.--The term ``owner'' has the meaning given the 
        term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
            (14) Person.--The term ``person'' has the meaning given the 
        term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
            (15) Prospective purchaser.--The term ``prospective 
        purchaser'' means a prospective purchaser of a brownfield site.
            (16) Release.--The term ``release'' has the meaning given 
        the term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
            (17) Response action.--The term ``response action'' has the 
        meaning given the term ``response'' in section 101 of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601).
            (18) Site assessment.--
                    (A) In general.--The term ``site assessment'' means 
                an investigation that determines the nature and extent 
                of a release or potential release of a hazardous 
                substance at a brownfield site and meets the 
                requirements of 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 brownfield site is 
                                contaminated and the threats to human 
                                health and the environment posed by the 
                                release of contaminants at the 
                                brownfield site; and
                            (ii) may include--
                                    (I) review of such information 
                                regarding the brownfield site and 
                                previous uses as is available at the 
                                time of the review; and
                                    (II) an offsite evaluation, if 
                                appropriate.
            (19) State.--The term ``State'' has the meaning given the 
        term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).

SEC. 102. INVENTORY AND ASSESSMENT GRANT PROGRAM.

    (a) In General.--The Administrator shall establish a program to 
award grants to States or local governments to inventory brownfield 
sites and to conduct site assessments of brownfield sites.
    (b) Scope of Program.--
            (1) Grant awards.--To carry out subsection (a), the 
        Administrator may, on approval of an application, provide 
        financial assistance to a State or local government.
            (2) Grant application.--An application for a grant under 
        this section shall include, to the extent practicable, each of 
        the following:
                    (A) An identification of the brownfield sites for 
                which assistance is sought and a description of the 
                effect of the brownfield sites on the community, 
                including a description of the nature and extent of any 
                known or suspected environmental contamination within 
                the areas.
                    (B) A description of the need of the applicant for 
                financial assistance to inventory brownfield sites and 
                conduct site assessments.
                    (C) A demonstration of the potential of the grant 
                assistance to stimulate economic development, including 
                the extent to which the assistance will stimulate the 
                availability of other funds for site assessment, site 
                identification, or environmental remediation and 
                subsequent redevelopment of the areas in which eligible 
                brownfield sites are situated.
                    (D) A description of the local commitment as of the 
                date of the application, which shall include a 
                community involvement plan that demonstrates meaningful 
                community involvement.
                    (E) A plan that shows how the site assessment, site 
                identification, or environmental remediation and 
                subsequent development will be implemented, including--
                            (i) an environmental plan that ensures the 
                        use of sound environmental procedures;
                            (ii) an explanation of the appropriate 
                        government authority and support for the 
                        project as in existence on the date of the 
                        application;
                            (iii) proposed funding mechanisms for any 
                        additional work; and
                            (iv) a proposed land ownership plan.
                    (F) A statement on the long-term benefits and the 
                sustainability of the proposed project that includes--
                            (i) the ability of the project to be 
                        replicated nationally and measures of success 
                        of the project; and
                            (ii) to the extent known, the potential of 
                        the plan for each area in which an eligible 
                        brownfield site is situated to stimulate 
                        economic development of the area on completion 
                        of the environmental remediation.
                    (G) Such other factors as the Administrator 
                considers relevant to carry out this title.
            (3) Approval of application.--
                    (A) In general.--In making a decision whether to 
                approve an application under paragraph (1), the 
                Administrator shall--
                            (i) consider the need of the State or local 
                        government for financial assistance to carry 
                        out this section;
                            (ii) consider the ability of the applicant 
                        to carry out an inventory and site assessment 
                        under this section;
                            (iii) ensure a fair distribution of grant 
                        funds between urban and nonurban areas; and
                            (iv) consider such other factors as the 
                        Administrator considers relevant to carry out 
                        this section.
                    (B) Grant conditions.--As a condition of 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 as the 
                Administrator determines appropriate.
            (4) Grant amount.--The amount of a grant awarded to any 
        State or local government under subsection (a) for inventory 
        and site assessment of 1 or more brownfield sites shall not 
        exceed $200,000.
            (5) Termination of grants.--If the Administrator determines 
        that a State or local government that receives a grant under 
        this subsection is in violation of a condition of a grant 
        referred to in paragraph (3)(B), the Administrator may 
        terminate the grant made to the State or local government and 
        require full or partial repayment of the grant.

SEC. 103. GRANTS FOR REVOLVING LOAN PROGRAMS.

    (a) In General.--
            (1) Establishment.--The Administrator shall establish a 
        program to award grants to be used by State or local 
        governments to capitalize revolving loan funds for the cleanup 
        of brownfield sites.
            (2) Loans.--The loans may be provided by the State or local 
        government to finance cleanups of brownfield sites by the State 
        or local government, or by an owner or a prospective purchaser 
        of a brownfield site (including a local government) at which a 
        cleanup is being conducted or is proposed to be conducted.
    (b) Scope of Program.--
            (1) In general.--
                    (A) Grants.--In carrying out subsection (a), the 
                Administrator may award a grant to a State or local 
                government that submits an application to the 
                Administrator that is approved by the Administrator.
                    (B) Use of grant.--The grant shall be used by the 
                State or local government to capitalize a revolving 
                loan fund to be used for cleanup of 1 or more 
                brownfield sites.
                    (C) 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 shall include the following:
                            (i) Evidence that the grant applicant has 
                        the financial controls and resources to 
                        administer a revolving loan fund in accordance 
                        with this title.
                            (ii) Provisions that--
                                    (I) ensure that the grant applicant 
                                has the ability to monitor the use of 
                                funds provided to loan recipients under 
                                this title;
                                    (II) ensure that any cleanup 
                                conducted by the applicant is 
                                protective of human health and the 
                                environment; and
                                    (III) ensure that any cleanup 
                                funded under this Act will comply with 
                                all applicable Federal and State laws 
                                that apply to the cleanup.
                            (iii) Identification of the criteria to be 
                        used by the State or local government in 
                        providing for loans under the program. The 
                        criteria shall include the financial standing 
                        of the applicants for the loans, the use to 
                        which the loans will be put, the provisions to 
                        be used to ensure repayment of the loan funds, 
                        and the following:
                                    (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 statement that 
                                attests that the cleanup of the site 
                                would not occur without access to the 
                                revolving loan fund.
                                    (III) The proposed method, and 
                                anticipated period of time required, to 
                                clean up the environmental 
                                contamination at the brownfield site.
                                    (IV) An estimate of the proposed 
                                total cost of the cleanup to be 
                                conducted at the brownfield site.
                                    (V) An analysis that demonstrates 
                                the potential of the brownfield site 
                                for stimulating economic development on 
                                completion of the cleanup of the 
                                brownfield site.
            (2) Grant approval.--In determining whether to award a 
        grant under this section, the Administrator shall consider--
                    (A) the need of the State or local government for 
                financial assistance to clean up brownfield sites that 
                are the subject of the application, taking into 
                consideration the financial resources available to the 
                State or local government;
                    (B) the ability of the State or local government to 
                ensure that the applicants repay the loans in a timely 
                manner;
                    (C) the extent to which the cleanup of the 
                brownfield site or sites would reduce health and 
                environmental risks caused by the release of 
                contaminants at, or from, the brownfield site or sites;
                    (D) the demonstrable potential of the brownfield 
                site or sites for stimulating economic development on 
                completion of the cleanup;
                    (E) the demonstrated ability of the State or local 
                government to administer such a loan program;
                    (F) the demonstrated experience of the State or 
                local government regarding brownfield sites and the 
                reuse of contaminated land, including whether the 
                government has received any grant under the 
                Comprehensive Environmental Response, Compensation, and 
                Liability Act of 1980 (42 U.S.C. 9601 et seq.) to 
                assess brownfield sites, except that applicants who 
                have not previously received such a grant may be 
                considered for awards under this section;
                    (G) the efficiency of having the loan administered 
                by the level of government represented by the applicant 
                entity;
                    (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 State or local government to ensure a fair 
                distribution of grant funds among brownfield sites 
                within the jurisdiction of the State or local 
                government; and
                    (J) such other factors as the Administrator 
                considers relevant to carry out this section.
            (3) Grant amount.--The amount of a grant made to a State or 
        local applicant under this section shall not exceed $500,000.
            (4) Revolving loan fund approval.--Each application for a 
        grant to capitalize a revolving loan fund under this section 
        shall, as a condition of approval by the Administrator, include 
        a written statement by the State or local government that--
                    (A) cleanups to be funded under the loan program of 
                the State or local government shall be conducted under 
                the auspices of, and in compliance with, the State 
                voluntary cleanup program or State Superfund program or 
                Federal authority;
                    (B) the cleanup or proposed voluntary cleanup is 
                cost-effective; and
                    (C) the estimated total cost of the cleanup is 
                reasonable.
    (c) Grant Agreements.--Each grant under this section for a 
revolving loan fund shall be made pursuant to a grant agreement. At a 
minimum, the grant agreement shall include provisions that ensure the 
following:
            (1) Compliance with law.--The grant recipient will 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) Repayment.--The State or local government will require 
        repayment of the loan consistent with this title.
            (3) Use of funds.--The State or local government will use 
        the funds solely for purposes of establishing and capitalizing 
        a loan program in accordance with this title and of cleaning up 
        the environmental contamination at the brownfield site or 
        sites.
            (4) Repayment of funds.--The State or local government will 
        require in each loan agreement, and take necessary steps to 
        ensure, that the loan recipient will use the loan funds solely 
        for the purposes stated in paragraph (3), and will 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) Nontransferability.--The funds will not be 
        transferable, unless the Administrator agrees to the transfer 
        in writing.
            (6) Liens.--
                    (A) Definitions.--In this paragraph, the terms 
                ``security interest'' and ``purchaser'' have the 
                meanings given the terms in section 6323(h) of the 
                Internal Revenue Code of 1986.
                    (B) Liens.--A lien in favor of the grant recipient 
                shall arise on the contaminated property subject to a 
                loan under this section.
                    (C) Coverage.--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.
                    (D) Timing.--The lien shall--
                            (i) 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
                            (ii) 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 of the State, county, or 
                        other governmental subdivision, as designated 
                        by State law, in which the real property 
                        subject to the lien is located.
            (7) Other conditions.--The State or local government will 
        comply with such other terms and conditions as the 
        Administrator determines are necessary to protect the financial 
        interests of the United States and to protect human health and 
        the environment.
    (d) Audits.--
            (1) In general.--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.
            (2) Future grants.--The result of the audit shall be taken 
        into account in awarding any future grants to the State or 
        local government.

SEC. 104. ECONOMIC REDEVELOPMENT GRANTS.

    (a) Expenditures From the Superfund.--Amounts in the Hazardous 
Substance Superfund established by section 9507 of the Internal Revenue 
Code of 1986 shall be made available consistent with, and for the 
purposes of carrying out, the grant programs established under sections 
102 and 103.
    (b) Authority To Award Grants.--There is authorized to be 
appropriated from the Hazardous Substance Superfund for grants to State 
and local governments under sections 102 and 103, $25,000,000 for each 
of fiscal years 1998 through 2002.

SEC. 105. 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 results of each program established under this title 
to--
            (1) the Committee on Environment and Public Works of the 
        Senate; and
            (2) the Committee on 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 102 and 103 
        among the States and local governments.

SEC. 106. LIMITATIONS ON USE OF FUNDS.

    (a) Excluded Facilities.--A grant for site inventory and assessment 
under section 102 or to capitalize a revolving loan fund under section 
103 may not be used for any activity involving--
            (1) a 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 for 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;
            (2) a facility included, or proposed for inclusion, on the 
        National Priorities List maintained by the Administrator under 
        the Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.);
            (3) a 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;
            (4) a facility that is subject to corrective action under 
        section 3004(u), 3008(h) of the Solid Waste Disposal Act (42 
        U.S.C. 6924(u) or 6928(h)) to which a corrective action permit 
        or order has been issued or modified to require the 
        implementation of corrective measures;
            (5) 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;
            (6) a facility at which there has been a release of a 
        polychlorinated biphenyl and that is subject to the Toxic 
        Substances Control Act (15 U.S.C. 2601 et seq.);
            (7) a 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 in effect under--
                    (A) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.);
                    (B) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
                seq.);
                    (C) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    (D) the Toxic Substances Control Act (15 U.S.C. 
                2601 et seq.); or
                    (E) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.);
            (8) 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 by section 9508 of the 
        Internal Revenue Code of 1986; and
            (9) a facility owned or operated by a department, agency, 
        or instrumentality of the United States, except for land held 
        in trust by the United States for an Indian tribe.
    (b) Fines and Cost-Sharing.--A grant made under this title may not 
be used to pay any fine or penalty owed to a State or the Federal 
Government, or to meet any Federal cost-sharing requirement.
    (c) Other Limitations.--
            (1) In general.--Funds made available to a State or local 
        government under the grant programs established under sections 
        102 and 103 shall be used only to inventory and assess 
        brownfield sites as authorized by this title and for 
        capitalizing a revolving loan fund as authorized by this title, 
        respectively.
            (2) Responsibility for cleanup action.--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 brownfield sites.

SEC. 107. EFFECT ON OTHER LAWS.

    Nothing in this title affects the liability or response authorities 
for environmental contamination under 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. 6901 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) the Safe Drinking Water Act (42 U.S.C. 300f et seq.).

SEC. 108. REGULATIONS.

    (a) In General.--The Administrator may issue such regulations as 
are necessary to carry out this title.
    (b) Procedures and Standards.--The regulations shall include such 
procedures and standards as the Administrator considers necessary, 
including procedures and standards for evaluating an application for a 
grant or loan submitted under this title.

SEC. 109. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Site Assessment Program.--There is authorized to be 
appropriated to carry out section 102 $10,000,000 for each of fiscal 
years 1998 through 2002.
    (b) Economic Redevelopment Assistance Program.--There is authorized 
to be appropriated to carry out section 103 $15,000,000 for each of 
fiscal years 1998 through 2002.
    (c) Availability of Funds.--The amounts appropriated under this 
section shall remain available until expended.

                    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:
    ``(n) Limitations on Liability for Prospective Purchasers.--
Notwithstanding paragraphs (1) through (4) of subsection (a), to the 
extent the liability of a person, with respect to a release or the 
threat of a release from a facility, is based solely on subsection 
(a)(1), the person shall not be liable under this Act if the person--
            ``(1) is a bona fide prospective purchaser of the facility; 
        and
            ``(2) does not impede the performance of any response 
        action or natural resource restoration at a 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 amended by inserting after 
subsection (n) the following:
    ``(o) Prospective Purchaser and Windfall Lien.--
            ``(1) In general.--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 (3) are met, the United 
        States shall have a lien on the 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 the unrecovered costs.
            ``(2) Amount; duration.--The lien--
                    ``(A) shall be for an amount not to 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 specified in subsection (l)(3); and
                    ``(D) shall continue until the earlier of 
                satisfaction of the lien or recovery of all response 
                costs incurred at the facility.
            ``(3) 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.--The response action 
                increases the fair market value of the facility above 
                the fair market value of the facility that existed on 
                the date that is 180 days before the response action 
                was commenced.''.
    (c) Definition of Bona Fide Prospective Purchaser.--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:
            ``(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 1997, 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 the person acquired the facility.
                    ``(B) Inquiry.--
                            ``(i) In general.--The person made all 
                        appropriate inquiry into the previous ownership 
                        and uses of the facility in accordance with 
                        generally accepted good commercial and 
                        customary standards and practices.
                            ``(ii) Standards.--The standards and 
                        practices issued by the Administrator under 
                        paragraph (35)(B)(ii) shall satisfy the 
                        requirements of this subparagraph.
                            ``(iii) Residential property.--In the case 
                        of property in residential or other similar use 
                        at the time of purchase by a nongovernmental or 
                        noncommercial entity, a site inspection and 
                        title search that reveal no basis for further 
                        investigation shall 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--
                            ``(i) stop ongoing releases;
                            ``(ii) prevent threatened future releases 
                        of hazardous substances; and
                            ``(iii) 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 such persons as are 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.
                    ``(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--INNOCENT LANDOWNERS

SEC. 301. INNOCENT LANDOWNERS.

    (a) Knowledge of Inquiry Requirement.--Section 101(35) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601(35)) is amended by striking subparagraph (B) 
and inserting the following:
                    ``(B) Knowledge of inquiry requirement.--
                            ``(i) Definition of contamination.--In this 
                        subparagraph, the term `contamination' means an 
                        existing release, a past release, or the threat 
                        of a release of a hazardous substance.
                            ``(ii) Requirement.--
                                    ``(I) Inquiry.--To establish that 
                                the defendant had no reason to know 
                                (under subparagraph (A)(i)), the 
                                defendant must have made, at the time 
                                of the acquisition, all appropriate 
                                inquiry (as well as comply with clause 
                                (vii)) into the previous ownership and 
                                uses of the facility, consistent with 
                                good commercial or customary practice 
                                in an effort to minimize liability.
                                    ``(II) Considerations.--For the 
                                purpose of subclause (I) and until the 
                                President issues or designates 
                                standards as provided in clause (iv), 
                                the court shall take into account--
                                            ``(aa) any specialized 
                                        knowledge or experience on the 
                                        part of the defendant;
                                            ``(bb) the relationship of 
                                        the purchase price to the value 
                                        of the property if 
                                        uncontaminated;
                                            ``(cc) commonly known or 
                                        reasonably ascertainable 
                                        information about the property;
                                            ``(dd) the obviousness of 
                                        the presence or likely presence 
                                        of contamination at the 
                                        property; and
                                            ``(ee) the ability to 
                                        detect the contamination by 
                                        appropriate investigation.
                            ``(iii) Conduct of environmental 
                        assessment.--A person who has acquired real 
                        property shall be considered to have made all 
                        appropriate inquiry within the meaning of 
                        clause (ii)(I) if--
                                    ``(I) the person establishes that, 
                                within 180 days prior to the date of 
                                acquisition, an environmental site 
                                assessment of the real property was 
                                conducted that meets the requirements 
                                of clause (iv); and
                                    ``(II) the person complies with 
                                clause (vii).
                            ``(iv) Environmental site assessment.--
                                    ``(I) In general.--An environmental 
                                site assessment meets the requirements 
                                of this clause if the assessment is 
                                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 any 
                                alternative standards issued by 
                                regulation by the President or issued 
                                or developed by other entities and 
                                designated by regulation by the 
                                President.
                                    ``(II) Study of practices.--Before 
                                issuing or designating alternative 
                                standards under subclause (I), the 
                                President shall conduct a study of 
                                commercial and industrial practices 
                                concerning environmental site 
                                assessments in the transfer of real 
                                property in the United States.
                            ``(v) Considerations in issuing 
                        standards.--In issuing or designating any 
                        standards under clause (iv), the President 
                        shall consider requirements governing each of 
                        the following:
                                    ``(I) Conduct of an inquiry by an 
                                environmental professional.
                                    ``(II) Interviews of each owner, 
                                operator, and occupant of the property 
                                to determine information regarding the 
                                potential for contamination.
                                    ``(III) Review of historical 
                                sources as necessary to determine each 
                                previous use and occupancy of the 
                                property since the property was first 
                                developed. In this subclause, the term 
                                `historical sources' means any of the 
                                following, if reasonably ascertainable: 
                                each recorded chain of title document 
                                regarding the real property, including 
                                each deed, easement, lease, 
                                restriction, and covenant, any aerial 
                                photograph, fire insurance map, 
                                property tax file, United States 
                                Geological Survey 7.5 minutes 
                                topographic map, local street 
                                directory, building department record, 
                                and zoning/land use record, and any 
                                other source that identifies a past use 
                                or occupancy of the property.
                                    ``(IV) Determination of the 
                                existence of any recorded environmental 
                                cleanup lien against the real property 
                                that has arisen under any Federal, 
                                State, or local law.
                                    ``(V) Review of reasonably 
                                ascertainable Federal, State, and local 
                                government records of any facility that 
                                is likely to cause or contribute to 
                                contamination at the real property, 
                                including, as appropriate--
                                            ``(aa) any investigation 
                                        report for the facility;
                                            ``(bb) any record of 
                                        activities likely to cause or 
                                        contribute to contamination at 
                                        the real property, including 
                                        any landfill or other disposal 
                                        location record, underground 
                                        storage tank record, hazardous 
                                        waste handler and generator 
                                        record, and spill reporting 
                                        record; and
                                            ``(cc) any other reasonably 
                                        ascertainable Federal, State, 
                                        and local government 
                                        environmental record that could 
                                        reflect an incident or activity 
                                        that is likely to cause or 
                                        contribute to contamination at 
                                        the real property.
                                    ``(VI) A visual site inspection of 
                                the real property and each facility and 
                                improvement on the real property and a 
                                visual site inspection of each 
                                immediately adjacent property, 
                                including an investigation of any 
                                hazardous substance use, storage, 
                                treatment, or disposal practice on the 
                                property.
                                    ``(VII) Any specialized knowledge 
                                or experience on the part of the person 
                                that acquired the property.
                                    ``(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 the contamination by 
                                appropriate investigation.
                            ``(vi) Reasonably ascertainable.--A record 
                        shall be considered to be reasonably 
                        ascertainable for purposes of clause (v) if a 
                        copy or reasonable facsimile of the record is 
                        publicly available by request (within 
                        reasonable time and cost constraints) and the 
                        record is practicably reviewable.
                            ``(vii) Appropriate inquiry.--A person 
                        shall not be treated as having made all 
                        appropriate inquiry under clause (ii)(I) 
                        unless--
                                    ``(I) the person has maintained a 
                                compilation of the information reviewed 
                                and gathered in the course of any 
                                environmental site assessment;
                                    ``(II) the person exercised 
                                appropriate care with respect to 
                                hazardous substances found at the 
                                facility by taking reasonable steps 
                                to--
                                            ``(aa) stop ongoing 
                                        releases of hazardous 
                                        substances;
                                            ``(bb) prevent threatened 
                                        future releases of hazardous 
                                        substances; and
                                            ``(cc) prevent or limit 
                                        human or natural resource 
                                        exposure to hazardous 
                                        substances previously released 
                                        into the environment; and
                                    ``(III) the person provides full 
                                cooperation, assistance, and facility 
                                access to such persons as are 
                                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.
                            ``(viii) 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 shall satisfy 
                        the requirements of clause (ii).''.
    (b) Regulatory Authority.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency may--
                    (A) issue such regulations as the Administrator 
                considers necessary to carry out the amendment made by 
                this section; and
                    (B) delegate and assign any duties or powers 
                imposed on or assigned to the Administrator by the 
                amendment made by this section, including the authority 
                to issue regulations.
            (2) Authority to clarify and implement.--The authority 
        under paragraph (1) includes authority to clarify or interpret 
        all terms, including the terms used in this section, and to 
        implement any provision of the amendment made by this section.
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