[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2921 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2921

 To amend the Comprehensive Environmental Response, Compensation, and 
  Liability Act of 1980 relating to settlements by certain qualified 
                  businesses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 1999

 Mr. Shadegg 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 amend the Comprehensive Environmental Response, Compensation, and 
  Liability Act of 1980 relating to settlements by certain qualified 
                  businesses, 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. CONSTITUTIONAL AUTHORITY.

    The constitutional authority upon which this Act rests is the power 
of Congress to make all laws which are necessary and proper for 
carrying into execution the powers vested by the United States 
Constitution in the Government of the United States, or in any 
Department or officer thereof, as contained in section 8 of article I 
of the Constitution.

SEC. 2. QUALIFIED BUSINESS AND FINANCIAL HARDSHIP SETTLEMENTS.

    Section 122 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9622) is amended by 
adding at the end the following:
    ``(n) Qualified Business Settlements.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        President shall enter into a settlement under this section with 
        a person (other than a person whose liability under this Act 
        arose from criminal acts) that qualifies pursuant to this 
        subsection without regard to the extent of liability of such 
        person.
            ``(2) Request.--An applicant seeking settlement under this 
        subsection shall submit, in writing, a letter to the President 
        requesting a qualified business settlement under this 
        subsection on a form provided by the President. The request 
        letter shall include the applicant's tax returns for the time 
        periods provided in paragraph (12). The President may require 
        additional information to verify the applicant's eligibility 
        for a settlement under this subsection. Financial information 
        submitted by the applicant under this subsection and marked 
        `confidential' shall be kept confidential by the President.
            ``(3) Settlement agreement.--If the President verifies that 
        the applicant meets the definition of a qualified business, the 
        President shall enter into a settlement within 90 days after 
        receipt of the request letter and other information required 
        under this subsection. The settlement shall meet the 
        requirements of this subsection, but without regard to the 
        extent of its liability, and shall require that--
                    ``(A) the business pay 5 percent of its average 
                annual gross income for the 2 years preceding the year 
                that the request was submitted by the applicant over 
                such period of time as the President may provide, up to 
                a maximum of 10 years, and subject to payment of 
                interest at the rate of 6 percent per year; except that 
                if the settlement amount is paid in full within the 
                first 5 years, the payments shall not be subject to the 
                payment of interest; and
                    ``(B) the qualified business shall cooperate with 
                the President in providing reasonable access and 
                information necessary for the President to carry out 
                the requirements of this subsection.
            ``(4) Notice.--Notice of the settlement shall be published 
        as provided in subsection (i). The notice shall provide a 
        general description of the contents of the agreement. Any 
        interested person may comment on whether the applicant is a 
        qualified business, in writing, to the President. The President 
        may withdraw from a settlement after considering the comments.
            ``(5) Decision of nonqualification; appeal.--
                    ``(A) Decision of nonqualification.--If the 
                President determines that the business does not qualify 
                for a settlement under this subsection, the President 
                shall notify the applicant, in writing, within 90 days 
                of the receipt of all information required under 
                paragraph (2) stating the reasons for denial. If the 
                President does not notify the applicant within 90 days, 
                the application is deemed denied.
                    ``(B) Appeal.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this Act, a denial of 
                        settlement under this subsection may be 
                        appealed.
                            ``(ii) Authority of environmental appeals 
                        board.--The Environmental Appeals Board of the 
                        Environmental Protection Agency is authorized 
                        to adjudicate denials of settlement under this 
                        subsection. Within 60 days of the date on which 
                        notice of denial is received, a denial of 
                        settlement may be appealed to the Board. The 
                        Board may consider whether the President has 
                        followed the provisions of this Act but shall 
                        not determine questions regarding liability.
                            ``(iii) Procedural rules.--In any appeal 
                        made pursuant to this subparagraph, the 
                        documents submitted by the applicant under 
                        paragraph (2) are not confidential. If an 
                        applicant agrees not to contest the share of 
                        liability under section 107 assigned by the 
                        President, the appeal shall include only a 
                        determination of the applicant's ability to pay 
                        its allocated share.
            ``(6) Judicial procedures.--In reviewing a proposed 
        settlement under this subsection, a United States district 
        court shall give deference to the President's determination 
        that the settlement is in the public interest and meets 
        applicable legal standards for court approval. Any person who 
        challenges a proposed settlement bears the burden of proving 
        that the proposed settlement does not meet applicable legal 
        standards for court approval. If a settlement is reached with 
        an applicant, the confidential information supplied to the 
        President under this subsection may be submitted under seal to 
        the court for in camera review.
            ``(7) Gross income determination.--In determining the 
        applicant's gross income for purposes of this subsection, the 
        income of all concerns in which the applicant maintains 
        ownership, control, or management may be considered by the 
        President.
            ``(8) Regulations.--The President may issue regulations to 
        implement this subsection.
            ``(9) Limitation on effect of settlement.--A settlement 
        under this subsection applies only to the applicant for the 
        settlement and does not release or affect in any way the 
        liability of any other person.
            ``(10) Limitation on lien.--If a settlement is made 
        pursuant to this subsection, the President shall not file a 
        lien under section 107 for an amount greater than the 
        settlement.
            ``(11) Modification of payment schedule.--Upon the filing 
        of a petition by an applicant for modification of a payment 
        schedule agreed to under paragraph (3)(A), the President may 
        modify the payment schedule.
            ``(12) Qualified business defined.--In this subsection, the 
        term `qualified business' means an applicant under this 
        subsection whose gross income as defined by section 61 of the 
        Internal Revenue Code of 1986 is less than $3,000,000 per year 
        for the average of the 2 years preceding the year that an 
        investigation of the applicant's share was initiated by the 
        President or the Administrator of the Environmental Protection 
        Agency, and for each of the 2 years preceding the year that the 
        request is submitted by the applicant under paragraph (2).
    ``(o) Financial Hardship Settlement.--
            ``(1) Consideration of offer.--The President shall consider 
        any offer of settlement by a person who is potentially liable 
        for remedial action costs under section 107, without regard to 
        the extent of that person's liability, if the person 
        demonstrates that payment of the amount for which the person is 
        liable under section 107 would be a financial hardship. A 
        person whose liability under section 107 arose from criminal 
        acts is not eligible to request a settlement under this 
        section. In considering a person's ability to pay, the 
        President shall consider all of the following:
                    ``(A) The financial resources of the person, 
                including available insurance.
                    ``(B) The person's ability to continue in business 
                after payment of the settlement amount.
                    ``(C) Whether liability for the settlement amount 
                would require the person to seek protection under 
                Federal bankruptcy laws.
            ``(2) Application.--
                    ``(A) Contents.--An applicant seeking settlement 
                under this subsection shall submit a letter to the 
                President requesting a financial hardship settlement on 
                a form provided by the President. The request letter 
                shall include the applicant's tax returns and all 
                schedules, financial statements, balance statements, 
                and other information concerning the person's gross 
                income and net worth for the 5 years preceding the date 
                of the application on a form provided by the President.
                    ``(B) Additional information.--Within 90 days of 
                the application, the President may require additional 
                information to verify the applicant's eligibility for 
                settlement under this section. The applicant may 
                provide any additional information the applicant 
                believes to be relevant.
                    ``(C) Confidential information.--Financial 
                information submitted by the applicant pursuant to this 
                section and marked `confidential' shall be kept 
                confidential by the President. If the President or the 
                Attorney General disputes a claim of confidentiality, 
                written notice shall be provided to the person claiming 
                the confidentiality that the claim is disputed. If the 
                person claiming the confidentiality does not file a 
                court action for declaratory relief within 30 days 
                after receiving this notice, the information shall be 
                made available to the public.
            ``(3) Settlement agreement.--
                    ``(A) In general.--If the President verifies that 
                payment by the applicant of the amount for which the 
                applicant is liable under section 107 would be a 
                financial hardship for the applicant, the President 
                shall enter into a settlement within 90 days after 
                receipt of the request letter and other information 
                required under this subsection. The settlement shall 
                meet the requirements of this subsection, but without 
                regard to the extent of the person's liability, and 
                shall be made pursuant to paragraph (1).
                    ``(B) Payment schedule.--The President shall allow 
                the settlement amount to be paid over time, up to a 
                maximum of 10 years, subject to payment of interest at 
                the rate of 6 percent per year. If the settlement 
                amount is paid in full within the first 5 years, the 
                payments shall not be subject to the payment of 
                interest.
                    ``(C) Petition to modify.--An applicant may file a 
                petition with the President to modify the payment 
                schedule.
            ``(4) Cooperation.--The applicant shall cooperate with the 
        President in providing reasonable access and information 
        necessary for the President to carry out the requirements of 
        this subsection.
            ``(5) Notice and comments.--
                    ``(A) Notice.--Notice of the settlement shall be 
                published as provided in subsection (i). The notice 
                shall provide a general description of the contents of 
                the agreement.
                    ``(B) Comments.--Any interested person may comment 
                on whether the applicant qualifies for a settlement 
                pursuant to this section in writing to the President. 
                The President may withdraw from a settlement after 
                considering the comments.
            ``(6) Decision of nonqualification; appeal.--
                    ``(A) Decision of nonqualification.--If the 
                President determines that the applicant does not 
                qualify for a settlement pursuant to this subsection, 
                the President shall notify the applicant in writing 
                within 90 days for the receipt of all information 
                required under paragraph (2) stating the reasons. If 
                the President does not notify the applicant within 90 
                days, the application is deemed denied.
                    ``(B) Appeal.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this Act, a denial of 
                        settlement under this subsection may be 
                        appealed.
                            ``(ii) Authority of environmental appeals 
                        board.--The Environmental Appeals Board of the 
                        Environmental Protection Agency is authorized 
                        to adjudicate denials of settlement under this 
                        subsection. Within 60 days of the date on which 
                        notice of denial is received, a denial of 
                        settlement may be appealed to the Board. The 
                        Board may consider whether the President has 
                        followed the provisions of this Act but shall 
                        not determine questions regarding liability.
                            ``(iii) Procedural rules.--In any appeal 
                        made pursuant to this subparagraph, the 
                        documents submitted by the applicant under 
                        paragraph (2) are not confidential. The appeal 
                        shall determine only the amount which the 
                        applicant is able to pay.
            ``(7) Judicial procedures.--In reviewing a proposed 
        settlement, the Federal district court shall give deference to 
        the President's determination that the settlement is in the 
        public interest and meets applicable legal standards for court 
        approval. Any person challenging a proposed settlement shall 
        bear the burden of proving that the proposed settlement 
does not meet the applicable legal standards for court approval. If a 
settlement is reached with an applicant, the confidential information 
supplied to the President under this subsection may be submitted under 
seal to the court for in camera review.
            ``(8) Determination of financial resources.--In determining 
        the applicant's financial resources, the financial resources of 
        all concerns in which the applicant maintains ownership, 
        control, or management may be considered by the President. A 
        settlement under this subsection applies only to the applicant 
        and does not release or affect in any way the liability of any 
        other person. The President may adopt rules to implement this 
        subsection.
            ``(9) Filing of lien.--If a settlement is made pursuant to 
        this subsection, the President shall not file a lien pursuant 
        to section 107 for an amount greater than the settlement.''.

SEC. 3. CONTIGUOUS PROPERTIES.

    (a) In General.--Section 107 of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)) 
is amended by adding at the end the following:
    ``(o) Contiguous Properties.--
            ``(1) Not considered to be an owner or operator.--
                    ``(A) In general.--A person that 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 the release shall not be considered to 
                be an owner or operator of a vessel or facility under 
                paragraph (1) or (2) of subsection (a) solely by reason 
                of the contamination if--
                            ``(i) the person did not cause, contribute, 
                        or consent to the release or threatened 
                        release;
                            ``(ii) the person is not affiliated through 
                        any familial or corporate relationship with any 
                        person that is or was a party potentially 
                        responsible for response costs at the facility;
                            ``(iii) the person exercised appropriate 
                        care with respect to each hazardous substance 
                        found at the facility by taking reasonable 
                        steps to stop any continuing release, prevent 
                        any threatened future release and prevent or 
                        limit human or natural resource exposure to any 
                        previously released hazardous substance;
                            ``(iv) the person provides full 
                        cooperation, assistance, and access to persons 
                        that are responsible for response actions at 
                        the vessel or facility from which there has 
                        been a release or threatened release, including 
                        the cooperation and access necessary for the 
                        installation, integrity, operation, and 
                        maintenance of any complete or partial response 
                        actions at the vessel or facility;
                            ``(v) the person does not impede the 
                        effectiveness or integrity of any institutional 
                        control employed at the vessel or facility; and
                            ``(vi) the person complies with any request 
                        for information or administrative subpoena 
                        issued by the President under this Act.
                    ``(B) Ground water.--With respect to hazardous 
                substances in ground water beneath a person's property 
                solely as a result of subsurface migration in an 
                aquifer from a source or sources outside the property, 
                appropriate care shall not require the person to 
conduct ground water investigations or to install ground water 
remediation systems.
            ``(2) Assurances.--The Administrator may--
                    ``(A) issue an assurance that no enforcement action 
                under this Act will be initiated against a person 
described in paragraph (1); and
                    ``(B) grant a person described in paragraph (1) 
                protection against a cost recovery or contribution 
                action under section 113(f).''.
    (b) National Priorities List.--
            (1) In general.--Section 105(a)(8) of such Act (42 U.S.C. 
        9605(a)(8)) is amended--
                    (A) in subparagraph (B) by inserting ``and'' after 
                the semicolon at the end; and
                    (B) by adding at the end the following:
            ``(C) provision that in listing a facility on the National 
        Priorities List, the Administrator shall not include any parcel 
        of real property at which no release has actually occurred, but 
        to which a released hazardous substance, pollutant, or 
        contaminant has migrated in ground water that has moved through 
        subsurface strata from another parcel of real estate at which 
        the release actually occurred, unless--
                    ``(i) the ground water is in use as a public 
                drinking water supply or was in such use at the time of 
                the release; and
                    ``(ii) the owner or operator of the facility is 
                liable, or is affiliated with any other person that is 
                liable, for any 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.''.
            (2) Listing of particular parcels.--Section 105 of such Act 
        is further amended by adding at the end the following:
    ``(h) Listing of Particular Parcels.--
            ``(1) Definition.--In subsection (a)(8)(C) and paragraph 
        (2) of this subsection, the term `parcel of real property' 
        means a parcel, lot, or tract of land that has a separate legal 
        description from that of any other parcel, lot, or tract of 
        land the legal description and ownership of which has been 
        recorded in accordance with the law of the State in which it is 
        located.
            ``(2) Statutory construction.--Nothing in subsection 
        (a)(8)(C) limits the Administrator's authority under section 
        104 to obtain access to and undertake response actions at any 
        parcel of real property to which a released hazardous 
        substance, pollutant, or contaminant has migrated in the ground 
        water.''.
            (3) Revision of national priorities list.--
                    (A) In general.--The President shall annually 
                revise the National Priorities List to conform with the 
                amendments made by paragraphs (1) and (2), based on 
                individual delisting recommendations made by each 
                Regional Administrator of the Environmental Protection 
                Agency.
                    (B) Delisted parcels.--In complying with this 
                paragraph, the President shall delist not more than 20 
                individual parcels of real property from the National 
                Priorities List in any 1 calendar year.
    (c) Conforming Amendment.--Section 107(a) of such Act (42 U.S.C. 
9607(a)) is amended by striking ``of this section'' and inserting ``and 
the exemptions and limitations stated in this section''.
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