[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2580 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2580

   To encourage the creation, development, and enhancement of State 
  response programs for contaminated sites, removing existing Federal 
   barriers to the cleanup of brownfield sites, and cleaning up and 
   returning contaminated sites to economically productive or other 
                            beneficial uses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 1999

Mr. Greenwood (for himself, Mr. Hall of Texas, Mr. Ganske, Mr. Hastings 
   of Florida, Mr. Moran of Virginia, Mr. Roemer, Mr. Martinez, Mr. 
Traficant, Mr. Clay, Mr. Shows, Mr. Peterson of Minnesota, Mr. Ehrlich, 
  Mr. Gillmor, Mr. Pickering, Mr. Upton, Mr. Shimkus, and Mr. Burr of 
 North Carolina) introduced the following bill; which was referred to 
    the Committee on Commerce, and in addition to the Committee on 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To encourage the creation, development, and enhancement of State 
  response programs for contaminated sites, removing existing Federal 
   barriers to the cleanup of brownfield sites, and cleaning up and 
   returning contaminated sites to economically productive or other 
                            beneficial uses.

    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 ``Land Recycling Act of 1999''.

SEC. 2. FINDINGS.

    (a) Findings.--Congress finds the following:
            (1) Brownfields are parcels of land that contain or 
        contained abandoned or under used commercial or industrial 
        facilities, the expansion or redevelopment of which is 
        complicated by the actual or potential presence of hazardous 
        substances, pollutants, or contaminants.
            (2) Brownfields, which may number in the hundreds of 
        thousands nationwide, threaten the environment, devalue 
        surrounding property, erode State and local tax bases, and 
        prevent job growth.
            (3) The primary environmental reason that current owners 
        and prospective developers do not redevelop brownfields is 
        their fear about the potential liability under environmental 
        laws associated with the cleanup and redevelopment of these 
        sites.
            (4) Current Federal law poses a barrier to the cleanup and 
        redevelopment of brownfields, leading instead to the 
        development of so-called greenfields, contributing to urban 
        sprawl, creating infrastructure problems, and reducing 
        recreational and agricultural opportunities.
            (5) Cleanup and redevelopment of brownfields will reduce 
        environmental contamination, encourage job growth, enhance 
        State and local tax bases, and curb the development of 
        greenfields.
            (6) Many States have enacted cleanup programs to address 
        the brownfields problem by allowing for the consideration of 
        future land use in deciding appropriate cleanup standards and 
        providing clear releases of liability upon completion of 
        cleanups.
            (7) State response programs have been very effective in 
        promoting the cleanup and redevelopment of brownfields while 
        ensuring the adequate protection of human health and the 
        environment.
    (b) Purposes and Objectives.--The purposes and objectives of this 
section are--
            (1) to increase significantly the pace of response 
        activities at contaminated sites by promoting and encouraging 
        the creation, development, and enhancement of State response 
        programs; and
            (2) to remove existing Federal barriers to the cleanup of 
        brownfield sites; and
            (3) to benefit the public health, welfare, and the 
        environment by cleaning up and returning contaminated sites to 
        economically productive or other beneficial uses.

SEC. 3. CLEANUPS PURSUANT TO STATE RESPONSE PROGRAMS.

    (a) Prohibition on Enforcement.--Except as otherwise provided in 
this section, neither the President nor any other person (other than a 
State) may use any authority of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) or section 7002(a)(1)(B) or section 7003 of the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.) to commence an administrative or 
judicial action under either of those Acts with respect to any release 
or threatened release at a facility that is, or has been, the subject 
of a response action pursuant to a State program that meets the 
requirements of subsection (b).
    (b) State Requirements.--The prohibition in subsection (a) applies 
with respect to a facility that is, or has been, the subject of a 
response action pursuant to a State program for undertaking response 
actions at facilities where there is a release or threatened release of 
hazardous substances if such program has been submitted to the 
Administrator of the Environmental Protection Agency together with a 
certification by the State that--
            (1) the State has enacted such program into law,
            (2) the State has committed the financial and personnel 
        resources necessary to carry out such program, and
            (3) such program will be implemented in a manner protective 
        of human health and the environment.
    (c) Limitation on Prohibition.--The prohibition under subsection 
(a) and the exemption under subsection (f) shall not apply with respect 
to any of the following:
            (1) Any facility listed on the National Priorities List, 
        unless the Administrator, on a facility-by-facility basis and 
        pursuant to an agreement with the State concerned, makes a 
        finding that a facility listed on the National Priorities List 
        is eligible to participate in a State cleanup program meeting 
        the requirements of subsection (b).
            (2) Any facility for which the Governor of a State has 
        requested Environmental Protection Agency assistance to perform 
        a response action.
            (3) Any facility owned or operated by a department, agency, 
        or instrumentality of the United States.
            (4) A release or threatened release to the extent that a 
        response action has been required pursuant to an administrative 
        order or judicial order or decree entered into by the United 
        States under any of the following laws before the commencement 
        of a response action pursuant to a State program described in 
        subsection (a):
                    (A) The Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                and following).
                    (B) The Solid Waste Disposal Act (42 U.S.C. 6901 
                and following).
                    (C) The Federal Water Pollution Control Act (33 
                U.S.C. 1251 and following).
                    (D) The Toxic Substances Control Act (15 U.S.C. 
                2601 and following).
                    (E) Title XIV of the Public Health Service Act 
                (commonly known as the Safe Drinking Water Act) (42 
                U.S.C. 300f and following).
            (5) A release or threatened release for which response 
        actions are immediately required to prevent or mitigate a 
        public health emergency and for which the State is not 
        responding in a timely manner.
    (d) Prior Actions.--Nothing in this section shall affect 
administrative or judicial action commenced prior to the date of 
enactment of this section.
    (e) Permits and Other Requirements.--(1) 18 months after enactment 
of this Act, Federal permit or permit revisions shall not be required 
for the on-site portion of response actions that are subject to the 
prohibition under subsection (a). Nothing in this paragraph diminishes 
the application of substantive standards required by law.
    (2) Within 12 months after enactment of this Act and after public 
notice and comment and consultation with State Governors, the 
Administrator shall promulgate regulations which streamline any 
reporting requirements connected with implementation of substantive 
requirements of Federal law and consistent with paragraph (1).
    (f) Assistance to States.--The Administrator shall provide 
technical, financial, and other assistance to States to establish and 
enhance State response programs. The Administrator shall encourage the 
States to develop risk sharing pools, indemnity pools, or insurance 
mechanisms to provide financing for response actions under their 
response programs.
    (g) Effect of Response.--Performance of a response action pursuant 
to a State program under this section shall not constitute an admission 
of liability under any Federal, State, or local law or regulation or in 
any citizens suit or other private action.

SEC. 4. ADDITIONS TO NATIONAL PRIORITIES LIST.

    (a) Additions to NPL.--Section 105 of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 and following) is amended by adding at the end the 
following new subsection:
    ``(h) Additions to NPL.--The President may add a facility to the 
National Priorities List only after requesting and obtaining the 
concurrence of the Governor of the State in which the facility is 
located. If the Governor assures the President that the State is 
addressing, or will address, the site under State authority, and the 
Governor does not concur in the listing of the site, the President 
shall not list the site.''.
    (b) Cross Reference.--Subparagraph (B) of section 105(a)(8) of such 
Act is amended by inserting after ``shall revise the list'' the 
following: ``, subject to subsection (h),''.

SEC. 5. INNOCENT LANDOWNERS.

    (a) In General.--Section 107 of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 and 
following) is further amended by adding at the end the following new 
subsection:
    ``(q) 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 he establishes that, within 180 days prior to the 
        time of acquisition, an environmental site assessment of the 
        real property was conducted that meets the requirements of this 
        subsection.
            ``(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 Administrator or promulgated or developed by others 
        and designated by rule by the Administrator. Before issuing or 
        designating alternative standards, the Administrator 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 Administrator 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 Administrator 
        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) Maintenance of information.--No presumption shall 
        arise under paragraph (1) unless the defendant has maintained a 
        compilation of the information reviewed and gathered in the 
        course of the environmental site assessment.''.
    (b) Cross Reference.--Section 101(35)(B) (42 U.S.C. 9601(35)(B)) is 
amended by inserting after ``all appropriate inquiry'' the following: 
``(as specified in section 107(o))''.

SEC. 6. BONA FIDE PROSPECTIVE PURCHASER LIABILITY.

    (a) Liability.--Section 107 the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 and 
following) is further amended by adding at the end the following new 
subsections:
    ``(r) Bona Fide Prospective Purchaser.--(1) Notwithstanding 
paragraphs (1) through (4) of subsection (a), a person who does not 
impede the performance of a response action or natural resource 
restoration at a facility shall not be liable to the extent liability 
at such facility is based solely on paragraph (1) of subsection (a) for 
a release or threat of release from the facility, and the person is a 
bona fide prospective purchaser of the facility.
    ``(2) For purposes of this subsection, the term `bona fide 
prospective purchaser' means a person who acquires ownership of a 
facility after the date of enactment of this subsection, or a tenant of 
such a person, who can establish each of the following by a 
preponderance of the evidence:
            ``(A) All active disposal of hazardous substances at the 
        facility occurred before that person acquired the facility.
            ``(B) The person made all appropriate inquiry into the 
        previous ownership and uses of the facility and its real 
        property in accordance with generally accepted commercial and 
        customary standards and practices. Standards described in 
        subsection (q)(2) (relating to innocent landowners) 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) The person provided all legally required notices with 
        respect to the discovery or release of any hazardous substances 
        at the facility.
            ``(D) The person exercised 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) 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.
            ``(F) The person is not affiliated with any other person 
        liable for response costs at the facility, through any direct 
        or indirect familial relationship, or any contractual, 
        corporate, or financial relationship other than that created by 
        the instruments by which title to the facility is conveyed or 
        financed.
    ``(s) Prospective Purchaser and Windfall Lien.--(1) 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 (r), and 
the conditions described in paragraph (2) are met, the United States 
shall have a lien upon such facility 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 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) The conditions referred to in paragraph (1) are the 
following:
            ``(A) A response action for which there are unrecovered 
        costs is carried out at the facility.
            ``(B) Such response action increases the fair market value 
        of the facility above the fair market value of the facility 
        that existed within 6 months before the response action was 
        taken.''.

SEC. 7. INNOCENT GOVERNMENTAL ENTITIES.

    Section 107 the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 and following) is further 
amended by adding at the end the following new subsection:
    ``(t) Innocent Governmental Entities.--There shall be no liability 
under subsection (a) for any State or local government if such 
liability is based solely on--
            ``(A) the granting of a license or permit to conduct 
        business; or
            ``(B) the State or local government's status as an owner or 
        operator of the facility or vessel, and the State or local 
        government--
                    ``(i) acquired the facility or vessel by escheat or 
                through any other involuntary transfer or through the 
                exercise of eminent domain, and
                    ``(ii) establishes by a preponderance of the 
                evidence that it--
                            ``(I) acquired the facility or vessel after 
                        the disposal or placement of the hazardous 
                        substances for which liability is alleged;
                            ``(II) did not, by any act or omission, 
                        cause or contribute to the release or 
                        threatened release of such hazardous 
                        substances; and
                            ``(III) exercised appropriate care with 
                        respect to such hazardous substances taking 
                        into consideration the characteristics of such 
                        hazardous substances, in light of all relevant 
                        facts, circumstances, and generally accepted 
                        good commercial and customary standards and 
                        practices at the time of the defendant's acts 
                        or omissions.''.

SEC. 8. CONTIGUOUS PROPERTIES.

    Section 107 the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 and following) is further 
amended by adding at the end the following new subsection:
    ``(u) Contiguous Properties.--(1) A person (other than the United 
States or a department, agency, or instrumentality of the United 
States) who owns or operates real property that is contiguous to or 
otherwise similarly situated with respect to real property on which 
there has been a release or threatened release of a hazardous substance 
and that is or may be contaminated by such release shall not be liable 
under subsection (a) (1) or (2) by reason of such ownership or 
operation solely by reason of such contamination if such person--
            ``(A) did not cause, contribute to, or consent to the 
        release or threatened release;
            ``(B) 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; and
            ``(C) is not affiliated with any other person liable for 
        response costs at the facility, through any direct or indirect 
        familial relationship, or any contractual, corporate, or 
        financial relationship.
    ``(2) The President may issue an assurance of no enforcement action 
under this Act to any such person and may grant any such person 
protection against cost recovery and contribution actions pursuant to 
section 113(f)(2). Such person may also petition the President to 
exclude from the description of a National Priorities List site such 
contiguous real property, if such property is or may be contaminated 
solely by ground water that flows under such property and is not used 
as a source of drinking water. The President may grant such a petition 
pursuant to such procedures as he deems appropriate.''.

SEC. 9. REMEDY SELECTION.

    Section 121 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 is amended as follows:
            (1) By inserting the following before the period at the end 
        of the first sentence in subsection (b)(1): ``to the extent 
        practicable, considering the nature and timing of reasonably 
        anticipated uses of land, water, and other resources''.
            (2) By adding after the first sentence in subsection 
        (b)(1): ``The preferences for treatment or permanent solutions 
        in this paragraph shall not apply to a treatment option or 
        permanent solution that would increase risk to the community or 
        to workers' health.''
            (3) By striking ``maximum'' in the penultimate sentence of 
        subsection (b)(1).
            (4) By striking ``or is relevant and appropriate'' and ``or 
        relevant and appropriate'' in subsection (d)(2)(A).
            (5) By striking ``Level Goals'' in subsection (d)(2)(A) and 
        inserting ``Levels''.
            (6) By striking ``and water quality criteria established 
        under section 304 or 303 of the Clean Water Act where such 
        goals or criteria are relevant and appropriate under the 
        circumstances of the release of threatened release'' in 
        subsection (d)(2)(A) and inserting ``where such levels are 
        relevant and appropriate under the circumstances of the release 
        of threatened release, considering the timing of any reasonably 
        anticipated use of water as drinking water and reasonable 
        points of compliance''.
            (7) In subsection (d)(2)(B) by striking clause (i), 
        striking ``(ii)'', and redesignating subclauses (I) through 
        (III) as clauses (i) through (iii).
            (8) By adding the following new subsection at the end 
        thereof:
    ``(g) Risk Assessment and Characterization Principles.--Risk 
assessments and characterizations conducted for remedial actions 
subject to this section shall--
            ``(1) provide scientifically objective assessments, 
        estimates, and characterizations which neither minimize nor 
        exaggerate the nature and magnitude of risks to human health 
        and the environment;
            ``(2) be based on the best available scientific and 
        technical information, including data on bioavailability and 
        site-specific information; and
            ``(3) be based on an analysis of the weight of the 
        scientific evidence that supports conclusions about a problem's 
        potential risk to human health and the environment.''.

SEC. 10. BROWNFIELDS GRANTS.

    (a) In General.--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:

``SEC. 127. BROWNFIELDS GRANTS.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Administrative cost.--The term `administrative cost' 
        does not include the cost of--
                    ``(A) site inventories;
                    ``(B) investigation and identification of the 
                extent of contamination;
                    ``(C) design and performance of a response action; 
                or
                    ``(D) monitoring of natural resources.
            ``(2) Brownfield facility.--
                    ``(A) In general.--The term `brownfield facility' 
                means real property with respect to which expansion, 
                development, or redevelopment is complicated by the 
                presence or potential presence of a hazardous 
                substance.
                    ``(B) Excluded facilities.--The term `brownfield 
                facility' does not include--
                            ``(i) any portion of real property that is 
                        the subject of an ongoing removal or planned 
                        removal under section 104;
                            ``(ii) any portion of real property that is 
                        listed or has been proposed for listing on the 
                        National Priorities List;
                            ``(iii) any portion of real property with 
                        respect to which a cleanup is proceeding under 
                        a permit, an administrative order, or a 
                        judicial consent decree entered into by the 
                        United States or an authorized State under this 
                        Act, the Solid Waste Disposal Act (42 U.S.C. 
                        6901 et seq.), the Federal Water Pollution 
                        Control Act (33 U.S.C. 1251 et seq.), the Toxic 
                        Substances Control Act (15 U.S.C. 2601 et 
                        seq.), or the Safe Drinking Water Act (42 
                        U.S.C. 300f et seq.);
                            ``(iv) a facility that is owned or operated 
                        by a department, agency, or instrumentality of 
                        the United States, except a facility located on 
                        lands held in trust for an Indian tribe; or
                            ``(v) a portion of a facility for which 
                        assistance for response activity has been 
                        obtained under subtitle I of the Solid Waste 
                        Disposal Act (42 U.S.C. 6991 et seq.) from the 
                        Leaking Underground Storage Tank Trust Fund 
                        established under section 9508 of the Internal 
                        Revenue Code of 1986.
            ``(3) Eligible entity.--
                    ``(A) In general.--The term `eligible entity' 
                means--
                            ``(i) a State or a political subdivision of 
                        a State, including--
                                    ``(I) a general purpose unit of 
                                local government; and
                                    ``(II) a regional council or group 
                                of general purpose units of local 
                                government;
                            ``(ii) a redevelopment agency that is 
                        chartered or otherwise sanctioned by a State or 
                        other unit of government; and
                            ``(iii) an Indian tribe.
                    ``(B) Excluded entities.--The term `eligible 
                entity' does not include any entity that is not in full 
                compliance with the requirements of an administrative 
                order, judicial consent decree, or closure plan under a 
                permit which has been issued or entered into by the 
                United States or an authorized State under this Act, 
                the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), 
                the Federal Water Pollution Control Act (33 U.S.C. 1251 
                et seq.), the Toxic Substances Control Act (15 U.S.C. 
                2601 et seq.), or the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.) with respect to the real property 
                or portion thereof which is the subject of the order, 
                judicial consent decree, or closure plan.
    ``(b) Brownfield Assessment Grant Program.--
            ``(1) Establishment of program.--The President shall 
        establish a program to provide grants to eligible entities for 
        inventory and assessment of brownfield facilities.
            ``(2) Assistance for site assessment.--On approval of an 
        application made by an eligible entity, the President may make 
        grants to the eligible entity to be used for developing an 
        inventory and conducting an assessment of 1 or more brownfield 
        facilities.
            ``(3) Applications.--
                    ``(A) In general.--Any eligible entity may submit 
                an application to the President, in such form as the 
                President may require, for a grant under this 
                subsection for 1 or more brownfield facilities.
                    ``(B) Application requirements.--An application for 
                a grant under this subsection shall include information 
                relevant to the ranking criteria established under 
                paragraph (4) for the facility or facilities for which 
                the grant is requested.
            ``(4) Ranking criteria.--The President shall establish a 
        system for ranking grant applications submitted under this 
subsection that includes the following criteria:
                    ``(A) The demonstrated need for Federal assistance.
                    ``(B) The extent to which a grant will stimulate 
                the availability of other funds for environmental 
                remediation and subsequent redevelopment of the area in 
                which the brownfield facilities are located.
                    ``(C) The estimated extent to which a grant would 
                facilitate the identification of or facilitate a 
                reduction in health and environmental risks.
                    ``(D) The potential to stimulate economic 
                development of the area, such as the following:
                            ``(i) The relative increase in the 
                        estimated fair market value of the area as a 
                        result of any necessary response action.
                            ``(ii) The potential of a grant to create 
                        new or expand existing business and employment 
                        opportunities on completion of any necessary 
                        response action.
                            ``(iii) The estimated additional tax 
                        revenues expected to be generated by economic 
                        redevelopment in the area in which a brownfield 
                        facility is located.
                    ``(E) The financial involvement of the State and 
                local government in any response action planned for a 
                brownfield facility and the extent to which the 
                response action and the proposed redevelopment is 
                consistent with any applicable State or local community 
                economic development plan.
                    ``(F) The extent to which the site assessment and 
                subsequent development involves the active 
                participation and support of the local community.
            ``(5) Maximum grant amount per facility.--A grant made to 
        an eligible entity under this subsection shall not exceed 
        $200,000 with respect to any brownfield facility covered by the 
        grant.
    ``(c) Brownfield Remediation Grant Program.--
            ``(1) Establishment of program.--The President shall 
        establish a program to provide grants to eligible entities to 
        be used for capitalization of revolving loan funds for remedial 
        actions at brownfield facilities.
            ``(2) Assistance for site remediation.--Upon approval of an 
        application made by an eligible entity, the President may make 
        grants to the eligible entity to be used for establishing a 
        revolving loan fund. Any fund established using such grants 
        shall be used to make loans to a State, a site owner, or a site 
        developer for the purpose of carrying out remedial actions at 1 
        or more brownfield facilities.
            ``(3) Applications.--
                    ``(A) In general.--Any eligible entity may submit 
                an application to the President, in such form as the 
                President may require, for a grant under this 
                subsection.
                    ``(B) Application requirements.--An application 
                under this section shall include information relevant 
                to the ranking criteria established under paragraph 
                (4).
            ``(4) Ranking criteria.--The President shall establish a 
        system for ranking grant applications submitted under this 
        subsection that includes the following criteria:
                    ``(A) The adequacy of the financial controls and 
                resources of the eligible entity to administer a 
                revolving loan fund in accordance with this title.
                    ``(B) The ability of the eligible entity to monitor 
                the use of funds provided to loan recipients under this 
                title.
                    ``(C) The ability of the eligible entity to ensure 
                that a remedial action funded by the grant will be 
                conducted under the authority of a State cleanup 
                program that ensures that the remedial action is 
                protective of human health and the environment.
                    ``(D) The ability of the eligible entity to ensure 
                that any cleanup funded under this Act will comply with 
                all laws that apply to the cleanup.
                    ``(E) The need of the eligible entity for financial 
                assistance to clean up brownfield sites that are the 
                subject of the application, taking into consideration 
                the financial resources available to the eligible 
                entity.
                    ``(F) The ability of the eligible entity to ensure 
                that the applicants repay the loans in a timely manner.
                    ``(G) The plans of the eligible entity for using 
                the grant to stimulate economic development or creation 
                of recreational areas on completion of the cleanup.
                    ``(H) The plans of the eligible entity for using 
                the grant to stimulate the availability of other funds 
                for environmental remediation and subsequent 
                redevelopment of the area in which the brownfield 
                facilities are located.
                    ``(I) The plans of the eligible entity for using 
                the grant to facilitate a reduction of health and 
                environmental risks.
                    ``(J) The plans of the eligible entity for using 
                the grant for remediation and subsequent development 
                that involve the active participation and support of 
                the local community.
            ``(5) Maximum grant amount.--A grant made to an eligible 
        entity under this subsection may not exceed $1,000,000.
    ``(d) General Provisions.--
            ``(1) Prohibition.--No part of a grant under this section 
        may be used for the payment of penalties, fines, or 
        administrative costs.
            ``(2) Audits.--The President shall audit an appropriate 
        number of grants made under subsections (b) and (c) to ensure 
        that funds are used for the purposes described in this section.
            ``(3) Agreements.--
                    ``(A) Terms and conditions.--Each grant made under 
                this section shall be subject to an agreement that--
                            ``(i) requires the eligible entity to 
                        comply with all applicable Federal and State 
                        laws;
                            ``(ii) requires the eligible entity to use 
                        the grant exclusively for the purposes 
                        specified in subsection (b)(2) or (c)(2);
                            ``(iii) in the case of an application by a 
                        State under subsection (c)(2), requires payment 
                        by the State of a matching share, of at least 
                        50 percent of the amount of the grant, from 
                        other sources of funding;
                            ``(iv) requires that grants under this 
                        section will not supplant State or local funds 
                        normally provided for the purposes specified in 
                        subsection (b)(2) or (c)(2); and
                            ``(v) contains such other terms and 
                        conditions as the President determines to be 
                        necessary to ensure proper administration of 
                        the grants.
                    ``(B) Limitation.--The President shall not place 
                terms or conditions on grants made under this section 
                other than the terms and conditions specified in 
                subparagraph (A).
            ``(4) Leveraging.--An eligible entity that receives a grant 
        under this section may use the funds for part of a project at a 
        brownfield facility for which funding is received from other 
        sources, including other Federal sources, but the grant shall 
        be used only for the purposes described in subsection (b)(2) or 
        (c)(2).
    ``(e) Approval.--
            ``(1) Initial grant.--Before the expiration of the fourth 
        quarter of the first fiscal year following the date of the 
        enactment of this section, the President shall make grants 
        under this section to eligible entities and States that submit 
        applications, before the expiration of the second quarter of 
        such year, that the President determines have the highest 
        rankings under the ranking criteria established under 
        subsection (b)(4) or (c)(4).
            ``(2) Subsequent grants.--Beginning with the second fiscal 
        year following the date of enactment of this section, the 
        President shall make an annual evaluation of each application 
        received during the prior fiscal year and make grants under 
        this section to eligible entities and States that submit 
        applications during the prior year that the President 
        determines have the highest rankings under the ranking criteria 
        established under subsection (b)(4) or (c)(4).
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary. 
Such funds shall remain available until expended.''.
                                 <all>