[Congressional Record Volume 140, Number 10 (Monday, February 7, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. PELL (by request):
  S. 1831. A bill to implement the Protocol on Environmental Protection 
to the Antarctic Treaty, to enact a prohibition against Antarctic 
mineral resource activities, and for other purposes; to the Committee 
on Foreign Relations.


             antarctic environmental protection act of 1993

 Mr. PELL. Mr. President, by request, I introduce for 
appropriate reference a bill to implement the Protocol on Environmental 
Protection to the Antarctic Treaty, to enact a prohibition against 
Antarctic mineral resource activities, and for other purposes.
  This proposed legislation has been requested by the Department of 
State, and I am introducing it in order that there may be a specific 
bill to which Members of the Senate and the public may direct their 
attention and comments.
  I reserve my right to support or oppose this bill, as well as any 
suggested amendments to it, when the matter is considered by the 
Committee on Foreign Relations.
  I ask unanimous consent that the bill be printed in the Record, 
together with a statement of purpose and need, the section-by-section 
analysis, and the letter from the Assistant Secretary of State for 
Legislative Affairs, which was received on November 16, 1993.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1831

       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 ``Antarctic Environmental 
     Protection Act of 1993''.

     SEC. 2. FINDINGS, PURPOSE, AND POLICY.

       (a) Findings.--The Congress finds that--
       (1) the Antarctic Treaty and the Protocol on Environmental 
     Protection to the Antarctic Treaty have established a firm 
     foundation for the comprehensive protection of the Antarctic 
     environment, the continuation of international cooperation, 
     and the freedom of scientific investigation in Antarctica;
       (2) the Protocol establishes international mechanisms and 
     creates legal obligations necessary for the maintenance of 
     Antarctica as a natural reserve, devoted to peace and 
     science;
       (3) the Protocol serves important United States 
     environmental and resource management interests, while at the 
     same time preserving the freedom of scientific investigation 
     in Antarctica;
       (4) the Protocol represents an important contribution to 
     the United States' long-term legal and political objectives 
     of maintenance of Antarctica as an area of peaceful 
     international cooperation;
       (5) the Protocol institutes environmental impact assessment 
     procedures applicable to United States activities in 
     Antarctica which are consistent with those of the National 
     Environmental Policy Act of 1969;
       (6) the prohibition of Antarctic mineral resource activity 
     will contribute to protection of the Antarctic environment 
     and dependent and associated ecosystems by avoiding potential 
     environmental degradation which could result from mineral 
     resource activities;
       (7) the Protocol, including the principles contained in 
     Article 3, which is legally binding on the United States, 
     provides a basis for granting residual regulatory authority 
     to address situations not specifically addressed by the 
     provisions of the Protocol; and
       (8) Antarctica is a natural reserve, devoted to peace and 
     science.
       (b) Purpose.--The purpose of this Act is to provide 
     legislative authority to implement, with respect to the 
     United States, the Protocol on Environmental Protection to 
     the Antarctic Treaty.
       (c) Policy.--
       (1) It is the national policy of the United States that the 
     protection of the Antarctic environment and dependent and 
     associated ecosystems and the intrinsic value of Antarctica, 
     including its wilderness and aesthetic values and its value 
     as an area for the conduct of scientific research, in 
     particular research essential to understanding the global 
     environment, shall be fundamental considerations in the 
     planning and conduct of all activities in the Antarctic 
     Treaty area.
       (2) It is the national policy of the United States that 
     activities in Antarctica are to be planned and conducted so 
     as to limit adverse impacts on the Antarctic environment and 
     dependent and associated ecosystems and avoid--
       (A) adverse effects on climate or weather patterns;
       (B) significant adverse effects on air or water quality;
       (C) significant changes in the atmospheric, terrestrial 
     (including aquatic), glacial, or marine environments;
       (D) detrimental changes in the distribution, abundance of 
     productivity of species or populations of species of fauna 
     and flora;
       (E) further jeopardy to endangered or threatened species or 
     populations of such species; or
       (F) degradation of, or substantial risk to, areas of 
     biological, scientific, historic, aesthetic, or wilderness 
     significance.
       (3) It is the national policy of the United States that 
     activities in Antarctica are to be planned and conducted on 
     the basis of information sufficient to allow prior 
     assessments of, and informed judgments about, their possible 
     impacts on the Antarctic environment and dependent and 
     associated ecosystems and on the value of Antarctica for the 
     conduct of scientific research, taking full account of--
       (A) the scope of the activity, including its area, 
     duration, and intensity;
       (B) the cumulative impacts of the activity, both by itself 
     and in combination with other activities in the Antarctic 
     Treaty area;
       (C) whether the activity will detrimentally affect any 
     other activity in the Antarctic Treaty area;
       (D) whether technology and procedures are available to 
     provide for environmentally safe operations;
       (E) whether there exists the capacity to monitor key 
     environmental parameters and ecosystem components so as to 
     identify and provide early warning of any adverse effects of 
     the activity and to provide for such modification of 
     operating procedures as may be necessary in the light of the 
     results of monitoring or increased knowledge of the Antarctic 
     environment and dependent and associated ecosystems; and
       (F) whether there exists the capacity to respond promptly 
     and effectively to accidents, particularly those with 
     potential environmental effects.
       (4) It is the national policy of the United States that 
     regular and effective monitoring take place to allow 
     assessment of the impacts of ongoing activities, including 
     the verification of predicted impacts.
       (5) It is the national policy of the United States that 
     regular and effective monitoring take place to facilitate 
     early detection of the possible unforeseen effects of 
     activities carried out both within and outside the Antarctic 
     Treaty area on the Antarctic environment and dependent and 
     associated ecosystems.
       (6) It is the national policy of the United States that 
     activities in Antarctica be planned and conducted so as to 
     accord priority to scientific research and to preserve the 
     value of Antarctica as an area for the conduct of such 
     research, including research essential to understanding the 
     global environment.
       (7) It is the national policy of the United States that 
     activities in Antarctica subject to U.S. jurisdiction take 
     place in a manner consistent with the Protocol, and be 
     modified, suspended or cancelled if they result in or 
     threaten to result in impacts upon the Antarctic environment 
     or dependent or associated ecosystems inconsistent with the 
     Protocol.

     Sec. 3. DEFINITIONS.

       For purposes of this Act----
       (1) The term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency or an officer or employee 
     of the Environmental Protection Agency designated by the 
     Administrator.
       (2) The term ``Antarctica'' means the area south of 60 
     degrees south latitude, except that with respect to Antarctic 
     mineral resource activity, the term means the area south of 
     the Antarctic Convergence as defined in section 303 of the 
     Antarctic Marine Living Resources Convention Act of 1984 (16 
     USC 2342(1)).
       (3) The term ``Antarctic mineral resource''--
       (A) means any nonliving natural nonrenewable resource (or 
     part or product thereof) found in or recovered from 
     Antarctica;
       (B) includes fossil fuels and minerals, whether metallic or 
     nonmetallic; and
       (C) does not include ice, water, snow, or any mineral 
     resource removed before the date of enactment of this Act.
       (4) The term ``Antarctic mineral resource activity'' means 
     collecting, removing or transporting, or prospecting for, or 
     exportation or development of, an Antarctic mineral resource, 
     except that the term does not include those activities that 
     are undertaken in the course of and that are directly related 
     to--
       (A) scientific research;
       (B) construction, operation and maintenance of research 
     stations, field camps, or other such facilities; or
       (C) providing, with the advance written consent of the 
     recipient institution, an Antarctic mineral resource specimen 
     to a museum or other institution with a similar public 
     function.
       (5) The term ``Antarctic specially protected area'' means 
     an area identified as such under section 6.
       (6) The term ``Committee for Environmental Protection'' 
     means the Committee for Environmental Protection established 
     under Article 11 of the Protocol.
       (7) The term ``development''--
       (A) means any activity, including logistic support, which 
     takes place following exploration, the purpose of which is 
     the exploitation of specific Antarctic mineral resource 
     deposits; and
       (B) includes processing, storage, and transport activities.
       (8) The term ``Director'' means the Director of the 
     National Science Foundation or an officer or employee of the 
     Foundation designated by the Director.
       (9) The term ``exploration''--
       (A) means any activity, including logistic support, the 
     purpose of which is the identification or evaluation of 
     specific Antarctic mineral resource deposits for possible 
     development; and
       (B) includes exploratory drilling, dredging, and other 
     surface or subsurface excavations undertaken to determine the 
     nature and size of mineral resource deposits and the 
     feasibility of their development.
       (10) The term ``harmful interference'' means--
       (A) flying or landing helicopters or other aircraft in a 
     manner that disturbs concentrations of birds or seals;
       (B) using vehicles or vessels, including hovercraft and 
     small boats, in a manner that disturbs concentrations of 
     birds or seals;
       (C) using explosives or firearms in a manner that disturbs 
     concentrations of birds or seals;
       (D) willfully disturbing breeding or molting birds or 
     concentrations of birds or seals by persons on foot;
       (E) significantly damaging concentrations of native 
     terrestrial plants by landing aircraft, driving vehicles, 
     walking on them, or by other means; and
       (F) any activity that results in significant adverse 
     modification of the habitat of any species or population of 
     native mammal, native bird, native plant or native 
     invertebrate.
       (11) The term ``historic site or monument'' mans any site 
     or monument identified as a historic site or monument by the 
     Director under section 6.
       (12) The term ``impact'' means impact on the Antarctic 
     environment or on dependent or associated ecosystems.
       (13) The term ``implementing agency'' means the Director, 
     the Secretary, the Administrator, the Secretary of the 
     Department in which the Coast Guard is operating, or the 
     Secretary of State, as regulatory responsibilities are vested 
     under this Act.
       (14) The term ``import'' means to land on, bring into, or 
     introduce into, or attempt to land on, bring into, or 
     introduce into, any place subject to the jurisdiction of the 
     United States, including the 12-mile territorial sea of the 
     United States, whether or not such act constitutes an 
     importation within the meaning of the customs laws of the 
     United States.
       (15) The term ``native bird'' means any member, at any 
     stage of its life cycle (including eggs), of any species of 
     the class Aves which is indigenous to Antarctica or occurs 
     there seasonally through natural migrations, designated by 
     the Director as a native species under section 6, and 
     includes any part of such member.
       (16) The term ``native invertebrate'' means any terrestrial 
     or freshwater invertebrate, at any state of its life cycle, 
     which is indigenous to Antarctica, designated by the Director 
     as such under section 6, and includes any part of such 
     invertebrate.
       (17) The term ``native mammal'' means any member, at any 
     stage of its life cycle, of any species of the class 
     Mammalia, which is indigenous to Antarctica or occurs there 
     seasonally through natural migrations, designated by the 
     Director as a native species under section 6, and includes 
     any part of such member.
       (18) The term ``native plant'' means any terrestrial or 
     freshwater vegetation, including bryophytes, lichens, fungi 
     and algae, at any stage of its life cycle (including seeds 
     and other propagules), which is indigenous to Antarctica, 
     designated as such by the Director under section 6, and 
     includes any part of such vegetation.
       (19) The term ``non-native species'' means any species of 
     animal or plant which is not indigenous to Antarctica.
       (20) The term ``person'' means an individual, partnership, 
     corporation, trust, association, or other entity subject to 
     the jurisdiction of the United States and any department, 
     agency, or other instrumentality of the Federal Government or 
     of any State or local government, and any officer, employee, 
     or agent of any such instrumentality.
       (21) The term ``prohibited product'' means any substance 
     which is designated as such under section 6.
       (22) The term ``prohibited waste'' means any substance 
     which is designated as such under section 6.
       (23) The term ``prospecting'' means any activity, including 
     logistic support, the purpose of which is the identification 
     of Antarctic mineral resource potential for possible 
     exploration and development.
       (24) The term ``Protocol'' means the Protocol on 
     Environmental Protection to the Antarctic Treaty, signed 
     October 4, 1991, in Madrid, and all annexes thereto, and 
     includes any future amendments thereto which have entered 
     into force.
       (25) The term ``Secretary'' means the Secretary of 
     Commerce, or an officer or employee of the Department of 
     Commerce designated by the Secretary.
       (26) The term ``specifically protected species'' means any 
     native species designated as a specially protected species by 
     the Director under section 6.
       (27) The term ``take'' or ``taking'' means to kill, injure, 
     capture, handle, or molest, a native mammal or bird, or to 
     remove or damage such quantities of native plants that their 
     local distribution or abundance would be significantly 
     affected.
       (28) The term ``Treaty'' and ``Antarctic Treaty'' mean the 
     Antarctic Treaty signed in Washington, D.C. on December 1, 
     1959.
       (29) The term ``United States'' means the several States of 
     the Union, the District of Columbia, the Commonwealth of 
     Puerto Rico, American Samoa, the Virgin Islands, Guam, the 
     Commonwealth of the Northern Mariana Islands, any other 
     commonwealth, territory or possession of the United States, 
     and the Trust Territory of the Pacific Islands.
       (30) The term ``vessel subject to the jurisdiction of the 
     United States'' includes any ``vessel of the United States'' 
     and any ``vessel subject to the jurisdiction of the United 
     States'' as those terms are defined in section 303 of the 
     Antarctic Marine Living Resources Convention Act of 1984 (16 
     USC 2432).

     SEC. 4. PROHIBITED ACTS.

       (a) In General.--It is unlawful for any person--
       (1) to engage in, provide assistance (including logistic 
     support) to, or knowingly finance any Antarctic mineral 
     resource activity;
       (2) to receive, acquire, transport, offer for sale, sell, 
     purchase, import, export, or have custody, control or 
     possession of any Antarctic mineral resource which that 
     person knows, or in the exercise of due care should have 
     known, was recovered or otherwise possessed as a result of 
     Antarctic mineral resource activity, without regard to the 
     citizenship of the entity that engaged in, or the vessel used 
     in engaging in, the Antarctic mineral resource activity;
       (3) to introduce any prohibited product onto land or ice 
     shelves or into water in Antarctica;
       (4) to dispose of any waste onto ice-free land areas or 
     into fresh water systems in Antarctica;
       (5) to dispose of any prohibited waste in Antarctica;
       (6) to engage in open burning of waste in Antarctica after 
     March 1, 1994;
       (7) to transport passengers to, from or within Antarctica 
     by any vessel not required to comply with the Act to Prevent 
     Pollution from Ships (33 USC 1901 et seq.), unless the person 
     has an agreement with the vessel owner or operator under 
     which the owner or operator is required to comply with Annex 
     IV to the Protocol;
       (8) who organizes, sponsors, operates, or promotes a non-
     governmental expedition to Antarctica, and who does business 
     in the United States, to fail to notify all members of the 
     expedition of the environmental protection obligations of 
     this Act, and of actions which members must take, or not 
     take, in order to comply with those obligations;
       (9) to damage, remove, or destroy a historic site or 
     monument;
       (10) to refuse permission to any authorized officer or 
     employee of the United States to board a vessel, vehicle, or 
     aircraft of the United States, or subject to the jurisdiction 
     of the United States, for the purpose of conducting any 
     search or inspection in connection with the enforcement of 
     this Act or any regulation promulgated or permit issued under 
     this Act;
       (11) to forcibly assault, resist, oppose, impede, 
     intimidate, or interfere with any authorized officer or 
     employee of the United States in the conduct of any search or 
     inspection described in paragraph (10) of this subsection;
       (12) to resist a lawful arrest or detention for any act 
     prohibited by this section;
       (13) to interfere with, delay, or prevent, by any means, 
     the apprehension, arrest, or detention of another person, 
     knowing that such other person has committed any act 
     prohibited by this section;
       (14) to violate any regulation promulgated under this Act, 
     or any term or condition of any permit issued to that person 
     under this Act; or
       (15) to attempt to commit or cause to be committed any act 
     prohibited by this section.
       (b) It is unlawful for any person, unless authorized by a 
     permit issued under this Act--
       (1) to dispose of any waste in Antarctica (except as 
     otherwise authorized under the Act to Prevent Pollution from 
     Ships (33 USC 1901 et seq.)), including--
       (A) to dispose of any waste from land into the sea in 
     Antarctica; and
       (B) to incinerate any waste on land or ice shelves in 
     Antarctica, or on board vessels at points of embarcation or 
     debarcation, other than through the use at remote field sites 
     of incinerator toilets for human waste;
       (2) to introduce into Antarctica any member of a non-native 
     species;
       (3) to enter or engage in activities within any Antarctic 
     specially protected area;
       (4) to engage in any taking or harmful interference in 
     Antarctica; or
       (5) to receive, acquire, transport, offer for sale, sell, 
     purchase, import, export, or have custody, control or 
     possession of, any native bird, native mammal, or native 
     plant which the person knows, or in the exercise of due care 
     should have known, was taken in violation of this Act.
       (c) Exception for Emergencies.--No act described in 
     subsections (a)(4), (a)(5), (a)(6), (a)(7), (a)(9), (a)(14), 
     (a)(15) or subsection (b) shall be unlawful if the person 
     committing the act reasonably believed that he or she did so 
     under emergency circumstances involving the safety of human 
     life or of ships, aircraft, or equipment or facilities of 
     high value, or the protection of the environment.

     SEC. 5. PERMITS.

       (a) In General.--The Director may, in accordance with this 
     section, issue a permit which authorizes the conduct within 
     Antarctica of an act described in section 4(b).
       (b) Applications for Permits.--
       (1) Applications for permits under this section shall be 
     made in such manner and form, and shall contain such 
     information, as the Director shall by regulation prescribe, 
     and shall be signed by the persons responsible for the 
     activities undertaken under the permit.
       (2) The Director shall publish notice in the Federal 
     Register of each application which is made for a permit under 
     this section. The notice shall invite the submission by 
     interested parties, within 30 days (or such other reasonable 
     period greater than 30 days as the Director may determine) 
     after the publication of the notice, of written data, 
     comments, or views with respect to the application. Such 
     application, and any data, comments or views received, shall 
     be made available to the public.
       (c) Cooperation with Other Agencies on Certain Permits.--
       (1)(A) If the Director receives an application for a permit 
     under this section requesting authority to undertake any 
     action with respect to--
       (i) any native mammal which is a marine mammal within the 
     meaning of section 3(5) of the Marine Mammal Protection Act 
     of 1972 (16 USC 1362(5));
       (ii) any native mammal, native bird, native plant, or 
     native invertebrate which is an endangered species or 
     threatened species under the Endangered Species Act of 1973 
     (16 USC 1531 et seq.);
       (iii) any native bird which is protected under the 
     Migratory Bird Treaty Act (16 USC 701 et seq.);
     the Director shall submit a copy of the application to the 
     Secretary or to the Secretary of the Interior, as appropriate 
     (hereinafter in this subsection referred to as the 
     ``appropriate Secretary'').
       (B) After receiving a copy of any application from the 
     Director under subparagraph (A) of this paragraph the 
     appropriate Secretary shall promptly determine, and notify 
     the Director, whether or not any action proposed in the 
     application also requires a permit or other authorization 
     under any law administered by the appropriate Secretary.
       (C) If the appropriate Secretary notifies the Director that 
     any action proposed in the application requires a permit or 
     other authorization under any law administered by the 
     appropriate Secretary, the Director may not issue a permit 
     under this section with respect to such action unless such 
     other required permit or authorization is issued by the 
     appropriate Secretary and a copy thereof is submitted to the 
     Director. The issuance of any permit or other authorization 
     by the appropriate Secretary for the carrying out of any 
     action with respect to any native mammal, native bird, native 
     invertebrate, or native plant shall not be deemed to entitle 
     the applicant concerned to the issuance by the Director of a 
     permit under this section.
       (2)(A) If the Director receives an application for a permit 
     under this section requesting authority to undertake an 
     action described in section 4(b)(1), the Director shall 
     submit a copy of the application to the Administrator, and 
     the Director and Administrator shall promptly consult on the 
     application.
       (B) The Director shall not issue, or deny the issuance of, 
     a permit under this section with respect to an action 
     described in section 4(b)(1) before consulting with the 
     Administrator.
       (3)(A) If the Director receives an application for a permit 
     under this section requesting authority to undertake an 
     action described in section 4(b)(4) in connection with 
     unavoidable consequences of the construction or operation of 
     scientific support facilities, the Director shall submit a 
     copy of the application to the Secretary, and to the Director 
     and the Secretary shall promptly consult on the application.
       (B) The Director shall not issue, or deny the issuance of, 
     a permit under this section with respect to such an action 
     without the written concurrence of the Secretary. The 
     Secretary shall inform the Director of such concurrence or 
     denial thereof within 60 days (unless the Secretary and 
     Director agree otherwise) after receiving a copy of the 
     application under paragraph (3)(A) of this subsection.
       (4) The Director shall provide the Administrator with a 
     copy of any permit application received for an activity which 
     may be subject to regulations promulgated under section 7(c). 
     The Director shall not issue such a permit without written 
     notice from the Administrator that the applicable 
     requirements of such regulations have been met. The 
     Administrator shall provide the Director with written notice 
     as to whether such requirements have been met within sixty 
     days after receiving a copy of the application.
       (d) Issuance of Permits.--As soon as practicable after 
     receiving any application for a permit under this section, 
     or, in the case of any application to which subsection (c) of 
     this section applies, as soon as practicable after the 
     applicable requirements of such subsection are complied with, 
     the Director shall issue, or deny the issuance of, the 
     permit. Within 10 days after the date of the issuance or 
     denial of a permit under this subsection, the Director shall 
     publish notice of the issuance or denial in the Federal 
     Register, including a description of any terms and conditions 
     of the permit.
       (e) Modification, Suspension, and Revocation.--
       (1) The Director may modify, suspend, or revoke, in whole 
     or part, any permit issued under this section--
       (A) if there is any change in conditions which makes the 
     permit inconsistent with the provisions of this Act or the 
     Protocol;
       (B) in any case in which there has been any violation of 
     this Act, including a violation of any regulation promulgated 
     under this Act, or of any term or condition of the permit; or
       (C) in order to make the permit consistent with any change 
     made, after the date of issuance of the permit, to any 
     regulation promulgated under section 6.
       (2) If consultation with the Administrator was required 
     before issuance of the permit, under subsection (c)(2) of 
     this section, then the Director shall not modify the permit 
     before consulting with the Administrator with respect to the 
     modification.
       (3) If the concurrence of the Secretary was required before 
     issuance of the permit, under subsection (c)(3) of this 
     section, then the Director shall not modify the permit 
     without receiving the concurrence of the Secretary with 
     respect to the modification.
       (4) The Director shall publish notice of the modification, 
     suspension, or revocation of any permit in the Federal 
     Register within 10 days after the date of the decision, 
     including the reasons for the decision.
       (5) Any permit modification, suspension, or revocation 
     under paragraph (1)(B) of this subsection shall be undertaken 
     pursuant to the provisions of section 15.
       (f) Permit Fees.--The Director may establish and charge 
     fees for processing applications for permits under this 
     section. The amount of the fees shall be commensurate with 
     the administrative costs incurred by the Director in 
     processing the application. Fees received will be credited to 
     the appropriation or appropriations designed by the Director.
       (g) Terms and Conditions of Permits.--
       (1) Each permit issued under this section shall specify.--
       (A) the period during which the permit is valid; and
       (B) any other terms and conditions the Director considers 
     necessary and appropriate to ensure that any action 
     authorized under the permit is carried out in a manner 
     consistent with this Act and the regulations promulgated 
     under the Act, including appropriate record-keeping, 
     reporting, and compliance monitoring requirements, and other 
     terms and conditions relating to inspection of documents and 
     records.
       (2) A permit which authorizes the disposal of any waste in 
     Antarctica shall--
       (A) be issued only if the Director determines, after 
     consultation with the Administrator and based on all relevant 
     information, that such disposal will not pose a substantial 
     hazard to human health of the Antarctic environment;
       (B) specify the amount of waste which may be disposed of in 
     Antarctica, how the waste shall be managed prior to disposal, 
     and the conditions for the disposal;
       (C) authorize the disposal of sewage or domestic liquid 
     wastes from land directly into the sea only if the Director 
     has taken fully into account the provisions of Article 3 of, 
     and Annex III to, the Protocol, and provided that:
       (i) the Director has determined that such disposal occurs, 
     if practicable, where conditions exist for initial dilution 
     and rapid dispersal; and
       (ii) if generated in large quantities, such waste shall be 
     treated by maceration or a treatment that the Director has 
     determined provides greater environmental protection than 
     does maceration;
       (D) authorize the disposal of the by-product of sewage 
     treatment by the rotary biological contacter process or 
     similar processes from land into the sea, provided that the 
     Director has determined that such disposal does not adversely 
     affect the local environment;
       (E) authorize the disposal of waste through incineration 
     only if the Director has determined that the incineration 
     will meet the standards established by regulation under 
     section 6; and
       (F) not authorize any disposal of prohibited waste in 
     Antarctica.

     All determinations by the Director under this paragraph shall 
     be made in consultation with the Administrator.
       (3) a permit which authorizes a taking or a harmful 
     interference within Antarctica--
       (A) may be issued only for the purpose of providing--
       (i) specimens for scientific study or scientific 
     information;
       (ii) specimens for museums, herbaria, zoological or 
     botanical gardens, or other educational or cultural 
     institutions or uses; or
       (iii) for consequences of scientific activities, or of the 
     construction and operation of scientific support facilities, 
     which the Director has determined are unavoidable; and
       (B) shall require that, as determined by the Director--
       (i) no more native mammals, native birds, or native plants 
     are taken than are strictly necessary to meet the purposes 
     set forth in subparagraph (A) of this paragraph;
       (ii) only small numbers of native mammals or native birds 
     are killed, and in no case more native mammals or native 
     birds are killed from local populations than can, in 
     combination with other permitted takings, normally be 
     replaced by natural reproduction in the following season; and
       (iii) the diversity of species, as well as the habitats 
     essential to their existence, and the balance of the 
     ecological systems existing within Antarctica are maintained.
       (C) shall specify--
       (i) the number and species of native mammals, native birds, 
     native invertebrates, or native plants to which the permit 
     applies; and
       (ii) the manner in which the taking or harmful interference 
     shall be conducted (which manner, as determined by the 
     Director, involves the least degree of pain and suffering 
     practicable), the period of time within which it must be 
     conducted, the are in which it must be conducted, and the 
     person who will take the action.
     All determinations made by the Director under this paragraph 
     in connection with permits for which the concurrence of the 
     Secretary under subsection (c)(3) of this section is required 
     shall be made only with the concurrence of the Secretary.
       (4) A permit which authorizes a taking within Antarctica of 
     a member of a specially protected species must meet the 
     requirements contained in paragraph (3) of this subsection, 
     and in addition may be issued only if the Director determines 
     that--
       (A) there is a compelling scientific purpose for the 
     taking;
       (B) the taking will not jeopardize any existing natural 
     ecological system or the survival or recovery of the species 
     or local population; and
       (C) the taking uses non-lethal techniques, if appropriate.
     All determinations made by the Director under this paragraph 
     in connection with permits for which the concurrence of the 
     Secretary under subsection (c)(3) of this section is required 
     shall be made only with the concurrence of the Secretary.
       (5) A permit which authorizes the introduction of a member 
     of a non-native species into Antarctica--
       (A) may not be issued unless the non-native species is 
     listed in Appendix B to Annex II to the Protocol;
       (B) shall specify the number, species, and, if appropriate, 
     age and sex of the animals or plants to which the permit 
     applies;
       (C) shall specify the precautions to be taken to prevent 
     escape or contact with native fauna and flora;
       (D) shall require that any animals or plants to which the 
     permit applies, and any progeny, shall, prior to expiration 
     of the permit, be removed from Antarctica or disposed of by 
     incineration or equally effective means that eliminates risk 
     to native fauna and flora;
       (E) shall not permit the importation of dogs or live 
     poultry or other living birds; and
       (F) shall require that precautions be taken to prevent the 
     release into the environment of micro-organisms (e.g., 
     viruses, bacteria, parasites, yeasts and fungi) not present 
     in native fauna and flora.
       (6) A permit which authorizes entry into and engaging in 
     activities within an Antarctic specially protected area 
     shall--
       (A) if a management plan relating to the area has been 
     approved, be issued only--
       (i) to enter and engage in activities within the 
     specifically protected area which the Director has determined 
     are in accordance with the requirements of the management 
     plan relating to that area; and
       (ii) if accompanied by the relevant sections of the 
     management plan;
       (B) if a management plan relating to the area has not been 
     approved, be issued by only--
       (i) if entry is necessary to accomplish a compelling 
     scientific purpose which the Director has determined cannot 
     be served elsewhere; and
       (ii) if the Director has determined that the actions allow 
     under the permit will not jeopardize the natural ecological 
     system existing in the area; and
       (C) specify--
       (i) the extent and location of the specially protected 
     area;
       (ii) the activities authorized;
       (iii) the period of time within which the authorized 
     activities must be conducted, the area in which they must be 
     conducted, and the person who is authorized to conduct them; 
     and
       (iv) other conditions imposed by the management plan, if 
     any.
       (7) No permit shall be required for the importation of food 
     into Antarctica, except that--
       (A) no live animals may be imported for this purpose;
       (B) all plants and animal parts shall be kept under 
     carefully controlled conditions and disposed of in accordance 
     with the provisions of this Act; and
       (C) before dressed poultry is packaged for shipment to 
     Antarctica, it shall be inspected for evidence of disease, 
     such as Newcastle's disease, tuberculosis, and yeast 
     infection.

     SEC. 6. REGULATIONS.

       (a) In General.--The Director, the Secretary, the 
     Administrator, the Secretary of the Department in which the 
     Coast Guard is operating, and the Secretary of State shall 
     promulgate, in accordance with this section, such regulations 
     as are necessary and appropriate to implement the provisions 
     of this Act and the Protocol.
       (b) Regulations To Be Promulgated by the Secretary.--The 
     Secretary shall promulgate such regulations relating to 
     Antarctic mineral resource activity as the Secretary deems 
     are necessary and appropriate to implement the provisions of 
     this Act and the Protocol.
       (c) Regulations To Be Promulgated by the Director.--The 
     Director shall promulgate regulations which--
       (1) designate as native species--
       (A) each species of the class Aves;
       (B) each species of the class Mammalia;
       (C) each species of plant; and
       (D) each species of invertebrate;
     which is indigenous to Antarctica or which occurs there 
     seasonally through natural migrations;
       (2) specify those actions which must, and those actions 
     which must not, be taken within Antarctica in order to 
     protect, in accordance with the applicable provisions of the 
     Protocol, members of each native species designated under 
     subsection (c)(1) of this section;
       (3) designate as a specially protected species any species 
     of native mammal, native bird, native invertebrate, or native 
     plant which is--
       (A) listed in Appendix A to Annex II to the Protocol; or
       (B) approved by the United States for special protection 
     under the Protocol;
       (4) designate as a non-native species that may be 
     introduced into Antarctica only those species listed in 
     Appendix B to Annex II to the Protocol;
       (5) identify each area designated as a Antarctic specially 
     protected area or specially managed area under the Protocol, 
     and implement the provisions of the management plan 
     applicable to such area;
       (6) identify each historic site and monument--
       (A) listed under Article 8 of Annex V to the Protocol; or
       (B) approved by the United States for listing as a historic 
     site or monument;
       (7) require that any person who organizes, sponsors, 
     operates, or promotes a non-governmental expedition to 
     Antarctica, and who does business in the United States, to 
     notify all members of the expedition of the environmental 
     protection obligations of this Act, and of actions which 
     members must take, or not take, in order to comply with those 
     obligations; and
       (8) set forth the form, content, and manner of filing, if 
     applicable, of all notices, reports, declarations, or other 
     documentation which may be required with respect to the 
     carrying out of any act for which a permit is required under 
     this Act.
       (d) Residual Regulatory Authority of the Director.--In 
     addition to the specific authorities set forth in subsection 
     (c) of this section, the Director may promulgate such 
     regulations relating to the conservation of Antarctic fauna 
     and flora or area protection in Antarctica as the Director 
     deems necessary and appropriate to implement the provisions 
     of the Protocol, including but not limited to regulations 
     which address a situation not covered by the annexes to the 
     Protocol or in which a more rigorous or supplemental 
     requirement is necessary.
       (e) Regulations To Be Promulgated By the Director With the 
     Concurrence of the Administrator.--The Director, with the 
     concurrence of the Administrator, shall promulgate 
     regulations which--
       (1) designate as prohibited products--
       (A) polychlorinated biphenyls;
       (B) non-sterile soil;
       (C) polystyrene beads or chips or similar forms of 
     packaging;
       (D) pesticides (other than those required for scientific, 
     medical or hygiene purposes); and
       (E) substances which the Parties to the Protocol or Treaty 
     agree should be banned from use in Antarctica;
       (2) designate as prohibited waste--
       (A) radioactive materials;
       (B) electrical batteries;
       (C) liquid and solid fuel;
       (D) wastes containing harmful levels of heavy metals or 
     acutely toxic or harmful persistent compounds;
       (E) polyvinyl chloride, polyurethane foam, polystyrene 
     foam, rubber and lubricating oils, treated timbers and other 
     products which contain additives that could produce harmful 
     emissions if incinerated;
       (F) all other plastic wastes, except low density 
     polyethylene containers (such as bags for storing wastes), 
     provided that the capacity exists to incinerate such 
     containers under paragraph (5) of this subsection, in which 
     case such containers shall be incinerated;
       (G) fuel drums and other solid, non-combustible wastes 
     (provided that their removal would not result in greater 
     adverse environmental impact than leaving them in their 
     existing locations);
       (H) unless incinerated, autoclaved, or otherwise treated to 
     be made sterile--
       (i) residues of carcasses of imported animals;
       (ii) laboratory culture of micro-organisms and plant 
     pathogens;
       (iii) medical wastes; and
       (iv) introduced avian products; and
       (I) the solid residue of incineration;
       (3) provide that--
       (A) prohibited waste shall be removed from Antarctica;
       (B) sewage, domestic liquid waste, and other liquid waste 
     (other than prohibited waste) shall, to the maximum extent 
     practicable, be removed from Antarctica;
       (C) waste at field camps shall be transported to supporting 
     stations or vessels for disposal in accordance with this Act; 
     and
       (D) wastes removed from Antarctica shall be disposed of in 
     accordance with applicable domestic and international law;
       (4) provide that sewage, domestic liquid waste, and other 
     liquid waste (other than prohibited waste) to the maximum 
     extent practicable are not disposed of onto sea ice, ice 
     shelves, or the grounded ice-sheet, provided that such wastes 
     which are generated by stations located inland on ice shelves 
     or on the grounded ice-sheet may be disposed of in deep ice 
     pits if such disposal is the only practical option, as long 
     as such pits are not located on known ice-flow lines which 
     terminate at ice-free land areas or in areas of high 
     ablation;
       (5) if the Director determines, in consultation with the 
     Administrator, through sound waste management planning, to 
     allow incineration as a means of waste disposal, provide 
     standards for incineration which--
       (A) to the maximum extent practicable, reduce harmful 
     emissions;
       (B) take fully into account the provisions of Article 3 of 
     the Protocol;
       (C) are based on the criteria contained in sections 
     129(a)(2), 129(a)(4), and 129(c) of the Clean Air Act (42 USC 
     7429(a)(2), (a)(4), and (c)), taking into account the unique 
     circumstances of Antarctic logistics, operations, and the 
     Antarctic environment; and
       (D) take into account any emission standards and equipment 
     guidelines which may be recommended by the Committee for 
     Environmental Protection and the Scientific Committee on 
     Antarctic Research.
     If it has been determined to use incineration as a means of 
     waste disposal, the Director, in consultation with the 
     Administrator, shall review such determination not later than 
     five years after the initial promulgation of any incineration 
     standards, and at five-year intervals thereafter. Such review 
     shall take into account technological advances in waste 
     disposal and removal, new information concerning effects on 
     human health and the environment, and the state of the 
     Antarctic environment;
       (6) provide that all wastes to be removed from Antarctica, 
     or disposed of in Antarctica, shall be stored in such a way 
     as to prevent their release into the environment;
       (7) provide, with respect to the United States Antarctic 
     Program and any other United States Government program in 
     Antarctica, in accordance with Articles 8, 9 and 10 of Annex 
     III to the Protocol, for--
       (A) the establishment of a waster disposal classification 
     system;
       (B) the preparation, and annual review and update, of waste 
     management plans, taking into account Article 1(3) of Annex 
     III to the Protocol; and
       (C) other waste management activities of such programs; and
       (8) provide that past and present waste disposal sites on 
     land and abandoned work sites of Antarctic activities shall 
     be cleaned up by the generator of such wastes and the user of 
     such sites, provided that--
       (A) such regulations shall not require the removal of any 
     structure designated as a historic site or monument, or the 
     removal of any structure or waste material in circumstances 
     where the removal by any practical option would result in 
     greater adverse environmental impact than leaving the 
     structure or waste material in its existing location; and
       (B) such regulations shall take into account considerations 
     of practicality, and of the safety of human life.
       (f) Residual Regulatory Authority of the Director With the 
     Concurrence of the Administrator.--In addition to the 
     specific authorities set forth in subsection (e) of this 
     section, the Director, with the concurrence of the 
     Administrator, may--
       (1) promulgate such regulations relating to waste disposal 
     and waste management in Antarctica as the Director deems 
     necessary and appropriate to implement the provisions of the 
     Protocol, including but not limited to regulations which 
     address a situation not covered by the annexes to the 
     Protocol or in which a more rigorous or supplemental 
     requirement is necessary; and
       (2) designate additional items as prohibited products or 
     prohibited waste under subsection (e)(1) and (e)(2) of this 
     section, when the Director determines that such designation 
     is necessary and appropriate to protect human health or the 
     Antarctic environment.
       (g) Regulations To Be Promulgated by the Secretary of 
     State.--The Secretary of State shall promulgate such 
     regulations as are necessary and appropriate to implement, 
     with respect to any person, paragraph 5 of Article VII of the 
     Treaty, pertaining to the filing of advance notifications of 
     expeditions to and within Antarctica, including a requirement 
     for such person to describe how he or she plans to comply 
     with any regulations promulgated under subsection (h) of this 
     section.
       (h) Regulations with Respect to Contingency Planning and 
     Response Action.--
       (1) The Secretary of the Department in which the Coast 
     Guard is operating in addition to the regulations specified 
     in section 9, shall promulgate, with the concurrence of the 
     Director, such regulations as are necessary and appropriate 
     to implement the provisions of Article 15 of the Protocol 
     with respect to vessels.
       (2) The Director shall promulgate such regulations as are 
     necessary and appropriate to implement the provisions of 
     Article 15 of the Protocol with respect to land areas and ice 
     shelves in Antarctica.
       (i) Residual Regulatory Authority of the Secretary of the 
     Department in Which the Coast Guard is Operating.--In 
     addition to the specific authority set forth in subsection 
     (h) of this section and in section 9, the Secretary of the 
     Department in which the Coast Guard is operating may 
     promulgate such regulations relating to marine pollution in 
     Antarctica as the Secretary of said Department deems 
     necessary and appropriate to implement the provisions of the 
     Protocol, including but not limited to regulations which 
     address a situation not covered by the annexes to the 
     Protocol or in which a more rigorous or supplemental 
     requirement is necessary.
       (j) Time Period for Regulations.--The regulations to be 
     promulgated under subsections (c) and (g) of this section 
     shall be promulgated within 24 months after the date of 
     enactment of this Act. The regulations to be promulgated 
     under subsection (e) of this section shall be promulgated 
     within 36 months after the date of enactment of this Act.

     SEC. 7. ENVIRONMENTAL IMPACT ASSESSMENT.

       (a) Federal Activities.--
       (1)(A) It is the intent of Congress to implement U.S. 
     obligations under Article 8 of and Annex I to the Protocol by 
     applying the National Environmental Policy Act (42 USC 4321 
     et seq.) to proposals for federal agency activities in 
     Antarctica, as specified in this section.
       (B) The obligations contained in section 102(2)(C) of the 
     National Environmental Policy Act (42 USC 4332(2)(C)) shall 
     apply to proposals for federal agency activities occurring in 
     Antarctica and affecting the quality of the human environment 
     in Antarctica or dependent or associated ecosystems, as 
     specified in this section.
       (2)(A) Unless an agency which proposes to conduct a federal 
     activity in Antarctica determines that the activity will have 
     less than a minor or transitory impact, or unless a 
     comprehensive environment evaluation is being prepared in 
     accordance with paragraph (2)(C) of this subsection, the 
     agency shall prepare an initial environmental evaluation, in 
     accordance with Article 2 of Annex I to the Protocol.
       (B) If the agency determines, through the preparation of 
     the initial environmental evaluation, that the proposed 
     federal activity is likely to have a minor or transitory 
     impact, the activity may proceed if appropriate procedures 
     are put in place to assess and verify the impact of the 
     activity.
       (C) If the agency determines, through the preparation of 
     the initial environmental evaluation or otherwise, that a 
     proposed federal activity is likely to have more than a minor 
     or transitory impact, the agency shall prepare a 
     comprehensive environmental evaluation in accordance with 
     Article 3 of Annex I to the Protocol, and shall make such 
     comprehensive environmental evaluation publicly available for 
     comment.
       (3) Any agency decision under this section on whether a 
     proposed federal activity, to which paragraph (2)(C) of this 
     subsection applies, should proceed, and, if so, whether in 
     its original or in a modified form, shall be based on the 
     comprehensive environmental evaluation as well as other 
     considerations which the agency, in the exercise of its 
     discretion, deems relevant.
       (4) For the purposes of this section:
       (A) the term ``federal activity'' includes, but is not 
     limited to, activities conducted under a federal agency 
     research program in Antarctica, whether or not conducted by a 
     federal agency; and
       (B) activities that may have a ``significant'' impact, 
     within the meaning of section 102(2)(C) of the National 
     Environmental Policy Act (42 USC 4332(2)(C)), are deemed to 
     fall within the category of activities that are likely to 
     have ``more than a minor or transitory impact''.
       (b) Federal Activities Carried Out Jointly With Foreign 
     Governments.--
       (1) For the purposes of this subsection, ``Antarctic joint 
     activity'' means any federal activity in Antarctica which is 
     proposed to be conducted, or which is conducted, jointly or 
     in cooperation with one or more foreign governments, as 
     defined in regulations promulgated by such agencies as the 
     President may designate.
       (2) Where the Secretary of State, in cooperation with the 
     lead U.S. agency planning an Antarctic joint activity and 
     with the other government or governments involved, determines 
     that a government other than the United States, which has 
     signed or acceded to the Protocol, is coordinating the 
     implementation of environmental impact assessment procedures 
     for that activity, the requirements of subsection (a) of this 
     section shall not apply in respect of that activity.
       (3) Determinations under paragraph (2) of this subsection, 
     and agency actions and decisions in connection with 
     assessments of impacts of Antarctic joint activities, shall 
     not be subject to judicial review.
       (c) Nongovernmental Activities.--
       (1) The Administrator shall, within 24 months after the 
     date of enactment of this Act, promulgate regulations to 
     provide for--
       (A) the environmental impact assessment of nongovernmental 
     activities, including tourism, for which the United States is 
     required to give advance notice under paragraph 5 of Article 
     VII of the Treaty; and
       (B) coordination of the review of information regarding 
     environmental impact assessment received from other Parties 
     under the Protocol.
       (2) Such regulations shall be consistent with the 
     provisions of Annex I to the Protocol.
       (d) Decision To Proceed.--
       (1) No decision shall be taken to proceed with an activity 
     for which a comprehensive environmental evaluation is 
     prepared under this section unless there has been an 
     opportunity for consideration of the draft comprehensive 
     environmental evaluation at an Antarctic Treaty Consultative 
     Meeting, provided that no decision to proceed with a proposed 
     activity shall be delayed through the operation of this 
     subsection for more than 15 months from the date of 
     circulation of the draft comprehensive environmental 
     evaluation.
       (2) The Secretary of State shall circulate the final 
     comprehensive environmental evaluation, in accordance with 
     Article 3(6) of Annex I to the Protocol, at least 60 days 
     before the commencement of the activity in Antarctica.
       (e) Cases of Emergency.--The requirements set out in this 
     section, and in regulations promulgated under it, shall not 
     apply in cases of emergency relating to the safety of human 
     life or of ships, aircraft, or equipment and facilities of 
     high value, or the protection of the environment, which 
     require an activity to be undertaken without fulfilling these 
     requirements.
       (f) Judicial Review. Agency compliance with subsection (a) 
     of this section shall be reviewable under sections 701 et 
     seq. of Title 5, subject to the provisions of subsection 
     (b)(3) of this section.
       (g) Reporting.--The Secretary of State and the 
     Administration shall report annually to the Congress 
     regarding implementation of this section. Their reports shall 
     include information provided under Article 6 of Annex I to 
     the Protocol, copies of all comprehensive environmental 
     evaluations circulated and all public comments received, as 
     well as descriptions of any Antarctic joint activities and 
     the environmental impact documentation associated therewith.
       (h) Exclusive Mechanism.--Notwithstanding any other 
     provision of law, the requirements of the National 
     Environmental Policy Act as specified in this section shall 
     constitute the sole and exclusive statutory obligations of 
     the federal agencies with regard to assessing the 
     environmental impacts of proposed federal activities 
     occurring in Antarctica.
       (i) Decisions on Permit Applications.--The provisions of 
     this section requiring environmental impact assessments 
     (including initial environmental evaluations and 
     comprehensive environmental evaluations) shall not apply to 
     permitting decisions under section 5.

     SEC. 8. MONITORING.

       The Director, in consultation with the Administrator, shall 
     promulgate such regulations as are necessary and appropriate, 
     in accordance with Article 8 of and Annex I to the Protocol, 
     to provide for procedures to assess and verify the impact 
     over time of any activity that proceeds following the 
     completion of a comprehensive environmental evaluation and, 
     as appropriate, the impact over time of activities that 
     proceed after a determination that they are likely to have no 
     more than a minor or transitory impact.

     SEC. 9. MARINE POLLUTION--AMENDMENTS TO THE ACT TO PREVENT 
                   POLLUTION FROM SHIPS, 33 USC 1901 ET SEQ.

       (a) References.--All references in this section to 
     amendment or repeal mean amendment or repeal of a section, 
     subsection or provision of the Act to Prevent Pollution from 
     Ships (33 USC 1901 et seq.)
       (b) Definitions.--Subsection (a) of section 1901 of Title 
     33 is amended--
       (1) in paragraph (8) by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9) by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following new paragraphs:
       ``(10) `Antarctica' means the area south of 60 degrees 
     south latitude; and
       (11) `Antarctic Protocol' means the Protocol on 
     Environmental Protection to the Antarctic Treaty, signed 
     October 4, 1991, in Madrid, and all annexes thereto, and 
     includes any future amendments thereto which have entered 
     into force.''
       (c) Application of Annex IV of the Protocol on 
     Environmental Protection to the Antarctic Treaty.--Section 
     1901 of Title 33 is further amended by adding a new 
     subsection (c) as follows:
       ``(c) For the purposes of this chapter, the requirements of 
     Annex IV of the Antarctic Protocol shall apply in Antarctica 
     to all vessels over which the United States has jurisdiction, 
     except for vessels listed in 33 U.S.C. 1902(b).''
       (d) Administration.--Subsection (a) of section 1903 of 
     Title 33 is amended by inserting in the first sentence ``, 
     Annex IV to the Antarctic Protocol'' after ``the MARPOL 
     Protocol''.
       (e) Regulations.--Subsection (b)(1) of section 1903 of 
     Title 33 is amended by inserting ``, Annex IV to the 
     Antarctic Protocol'' after ``the MARPOL Protocol''.
       (f) Violations.--
       (1) Subsection (a) of section 1907 of Title 33 is amended 
     by inserting in the first sentence ``, Annex IV to the 
     Antarctic Protocol'' after ``the MARPOL Protocol''.
       (2) Subsection (b) of section 1907 of Title 33 is amended 
     by striking the fourth and fifth sentences and replacing them 
     with the following:
       ``With respect to the MARPOL Protocol, upon completion of 
     the investigation, the Secretary shall take the action 
     required by the MARPOL Protocol and whatever further actions 
     he or she considers appropriate under the circumstances. If 
     the initial evidence was provided by a party to the MARPOL 
     Protocol, the Secretary, acting through the Secretary of 
     State, shall inform that party of the action taken or 
     proposed. With respect to Annex IV to the Antarctic Protocol, 
     upon completion of the investigation, the Secretary shall 
     take any actions required by the Antarctic Protocol and 
     whatever further actions he or she considers appropriate 
     under the circumstances.''
       (g) Penalties.--Section 1908 of Title 33 is amended--
       (1) in subsection (a) by inserting ``Annex IV to the 
     Antarctic Protocol,'' after ``the MARPOL Protocol,'';
       (2) in subsection (b) by inserting ``Annex IV to the 
     Antarctic Protocol,'' after ``the MARPOL Protocol,'' in both 
     paragraphs (1) and (2);
       (3) in subsection (d) by inserting ``Annex IV to the 
     Antarctic Protocol,'' after ``the MARPOL Protocol,''.

     SEC. 10. REPRESENTATIVE TO THE COMMITTEE FOR ENVIRONMENTAL 
                   PROTECTION.

       (a) The Secretary of State, with the concurrence of the 
     Administrator, the Director and the Secretary, shall 
     designate an officer or employee of the United States to be 
     the United States representative of the Committee for 
     Environmental Protection.
       (b) The officer or employee designated shall have the 
     technical qualifications necessary to serve in this capacity.
       (c) The United States representative shall receive no 
     additional compensation by reason of service as such 
     representative.

     SEC. 11. OVERSIGHT.

       (a) Report and On-Site Inspections.--
       (1) The Secretary of State, in conjunction with the 
     Administrator and the Secretary, shall, at appropriate 
     intervals of between two and five years, conduct an 
     inspection of the United States Antarctic Program, including 
     on-site inspections of stations, field camps, and operations, 
     and review of any other relevant information, including 
     information received from the Director, with a view to 
     examining the overall compliance of the United States 
     Antarctic Program with this Act and the Protocol.
       (2) The inspection of the United States Antarctic Program 
     shall be conducted by a team designated by the Secretary of 
     State, the Administrator, and the Secretary. The team shall 
     comprise no more members than are necessary and appropriate 
     to carry out its mandate, and shall include technically 
     qualified experts, both governmental and non-governmental.
       (3) The National Science Foundation shall provide all 
     transportation and logistical support necessary to allow the 
     team to conduct the on-site inspections in Antarctica, and 
     shall cooperate to the fullest extent possible in meeting 
     requests for documents, other information, and assistance 
     necessary for the inspection team to carry out its work. The 
     costs of transportation to and from Antarctica shall be borne 
     by the Department of State, the Environmental Protection 
     Agency, and the Department of Commerce.
       (4) The inspection team shall prepare a draft report which 
     documents its findings on the compliance of the United States 
     Antarctic Program with the provisions of this Act and the 
     Protocol, shall specify any examples of failures of 
     compliance, and shall make recommendations. The inspection 
     team shall provide the draft report to the Director for 
     review and comment for a period not to exceed 120 days.
       (b) Publication.--The final report of the inspection team, 
     including any comments by the Director, shall promptly be 
     made public. The Director shall publish notice of the report 
     and the response in the Federal Register.

     SEC. 12. STUDY OF ANTARCTIC TOURISM.

       The Department of State shall coordinate an interagency 
     study of tourism in Antarctica (including recommendations 
     where appropriate) to determine whether or not additional 
     measures should be taken with respect to Antarctic tourist 
     activities. This study shall be completed within 24 months 
     after the date of enactment of this Act.

     SEC. 13. RULE MAKING AND PETITION FOR REGULATIONS.

       (a) Rule Making.--Promulgation of regulations under this 
     Act shall be in accordance with section 553 of Title 5.
       (b) Petition for Regulations.--Any person may petition the 
     implementing agency for the promulgation, amendment, or 
     repeal of any regulation under this Act within its authority. 
     Within 180 days of receipt of such a petition, the 
     implementing agency shall grant or deny the petition. If the 
     petition is denied, the implementing agency shall provide 
     notice of such denial and the reasons therefor. If the 
     petition is granted, the final regulations shall be 
     promulgated within twenty-four months of the granting of the 
     petition.

     SEC. 14. JUDICIAL REVIEW AND CITIZEN SUITS.

       (a) Judicial Review. Any judicial review of final 
     regulations promulgated under this act, of the denial of any 
     petition for the promulgation, amendment, or repeal of any 
     regulation under this Act, or of any final agency action on 
     any permit under section 5 shall be in accordance with 
     sections 701 through 706 of Title 5, except that--
       (1) any petition for such review may be filed only in the 
     United States Court of Appeals for the District of Columbia;
       (2) such petition shall be filed within thirty days from 
     the date of notice of final agency action;
       (3) action with respect to which review could have been 
     obtained under this section shall not be subject to judicial 
     review in any civil or criminal proceeding for enforcement;
       (4) only an objection which was raised with reasonable 
     specificity during the period for public comment may be 
     raised during judicial review; and
       (5) the filing of a petition for reconsideration shall not 
     postpone the effectiveness of any regulation.
       (b) Citizens' Suits.--
       (1) Except as provided in paragraph (2) of this subsection, 
     any person may commence a civil action under this subsection 
     on his or her own behalf--
       (A) against any person (including (i) the United States, 
     and (ii) any other governmental instrumentality or agency to 
     the extent permitted by the Eleventh Amendment to the 
     Constitution) who is alleged to have violated any permit, 
     regulation, or prohibition which has become effective under 
     this Act, provided that no such action may be brought against 
     any individual, grantee, or grantee institution based on an 
     alleged violation committed while the individual, grantee, or 
     grantee institution was engaged in scientific research in 
     Antarctica in connection with a federal agency program of 
     research in Antarctica; and
       (B) against the implementing agency where there is alleged 
     a failure of the implementing agency to perform any action 
     which, under section 6(j), section 7(c)(1), or section 13(b) 
     is not discretionary with the implementing agency.
       The U.S. District Court for the District of Columbia shall 
     have jurisdiction, without regard to the amount in 
     controversy or the citizenship of the parties, to enforce 
     such a permit, regulation, or prohibition, or to order the 
     implementing agency to perform such act or duty, as the case 
     may be, and, with respect to actions under subparagraph (A) 
     of this paragraph, shall have jurisdiction to impose 
     appropriate civil penalties not to exceed 50,000 dollars per 
     day for each violation, taking into account the factors in 
     section 16(b). The U.S. District Court for the District of 
     Columbia shall have jurisdiction to compel (consistent with 
     subparagraph (B) of this paragraph) agency action 
     unreasonably delayed. In any such action for unreasonable 
     delay, notice to the implementing agency shall be provided 
     180 days before commencing such action.
       (2) No action may be commenced--
       (A) under paragraph (1)(A) of this subsection--
       (i) prior to sixty days after the plaintiff has given 
     notice of the alleged violation to the implementing agency 
     and to any alleged violator of the permit, regulation, or 
     prohibition; or
       (ii) if the implementing agency has commenced and is 
     diligently prosecuting an enforcement action; or
       (B) under paragraph (1)(B) of this subsection, prior to 
     sixty days after the plaintiff has given notice of such 
     action to the implementing agency.
       Notice under this paragraph shall be given in such manner 
     as the implementing agency shall prescribe by regulation.
       (3) Any person may request the implementing agency to 
     commence an action against any individual, grantee, or 
     grantee institution who is alleged to have violated any 
     permit, regulation, or prohibition which has become effective 
     under this Act, while the individual, grantee, or grantee 
     institution was engaged in scientific research in Antarctica 
     in connection with a federal agency program of research in 
     Antarctica. A copy of such request shall be given to the 
     alleged violator. Within sixty days after such request is 
     made to the implementing agency, the implementing agency 
     shall either--
       (A) commence an action against the alleged violator; or
       (B) provide to the person making the request a written 
     response that (i) states the implementing agency's decision 
     not to take enforcement action against the alleged violator 
     and (ii) describes any other action the implementing agency 
     has taken or intends to take in connection with the alleged 
     violation.

     The response of the implementing agency under paragraph 
     (3)(B) of this subsection shall not be subject to judicial 
     review.
       (4) In any action under this subsection, the implementing 
     agency, if not a party, may intervene as a matter of right at 
     any time in the proceeding. A judgment in an action under 
     this subsection to which the United States is not a party 
     shall not, however, have any binding effect upon the United 
     States.
       (5) Whenever any action is brought under this subsection, 
     the plaintiff shall serve a copy of the complaint on the 
     Attorney General of the United states and on the implementing 
     agency. No consent judgment shall be entered in an action 
     brought under this subsection in which the United States is 
     not a party prior to 45 days following the receipt of a copy 
     of the proposed consent judgment by the Attorney General and 
     the implementing agency during which time the Government may 
     submit its comments on the proposed consent judgment to the 
     court and parties or may intervene as a matter of right.
       (6) Nothing in this subsection shall restrict any right 
     which any person or class of person may have under any 
     statute or common law to seek enforcement of any permit, 
     regulation, or prohibition, or to seek any other relief.
       (c) Costs of Litigation. In any judicial proceeding under 
     this section, the court may award costs of litigation 
     (including reasonable attorney and expert witness fees) to 
     any prevailing or substantially prevailing party whenever the 
     court determines that such award is appropriate. The court 
     may, if a temporary restraining order or preliminary 
     injunction is sought, require the filing of a bond or 
     equivalent security in accordance with the Federal Rules of 
     Civil Procedure.
       (d) Federal Compliance and Waiver of Sovereign Immunity.
       (1) Each department, agency, and instrumentality of the 
     executive, legislative, and judicial branches of the federal 
     government (i) having jurisdiction over any facility or site 
     in Antarctica, or (ii) engaged in any activity pursuant to 
     the Protocol, this Act or any regulation promulgated or 
     permit issued hereunder, shall be subject to, and comply 
     with, all federal requirements, both substantive and 
     procedural (including any requirement for permits or 
     reporting or any provisions for injunctive relief and such 
     sanctions as may be imposed by a court to enforce such 
     relief), respecting compliance with this Act and any 
     regulation promulgated or permit issued hereunder, in the 
     same manner and to the same extent, as any person is subject 
     to such requirements, including the payment of reasonable 
     service charges. The federal substantive and procedural 
     requirements referred to in this paragraph include, but are 
     not limited to, all administrative orders and all civil and 
     administrative penalties and fines, regardless of whether 
     such penalties or fines are punitive or coercive in nature or 
     are imposed for isolated, intermittent, or continuing 
     violations. The United States hereby expressly waives any 
     immunity otherwise applicable to the United States with 
     respect to any such substantive or procedural requirement 
     (including, but not limited to, any injunctive relief, 
     administrative order or civil or administrative penalty or 
     fine referred to in the preceding sentence, or reasonable 
     service charge). The reasonable service charges referred to 
     in this paragraph include, but are not limited to, fees or 
     charges assessed in connection with the processing and 
     issuance of permits, renewal of permits, amendments to 
     permits, review of plans, studies, and other documents, and 
     inspection and monitoring of facilities.
       (2) Neither the United States, nor any agent, employee, or 
     officer thereof, shall be immune or exempt from any process 
     or sanction of any federal court with respect to the 
     enforcement of any such injunctive relief. No agent, 
     employee, or officer of the United States shall be personally 
     liable for any civil penalty under any section of this Act 
     with respect to any act or omission within the scope of the 
     official duties of the agent, employee, or officer. An agent, 
     employee, or officer of the United States shall be subject to 
     any criminal sanction (including, but not limited to, any 
     fine or imprisonment) under any federal law, but no 
     department, agency, or instrumentality of the federal 
     government shall be subject to any such sanction. The 
     President may exempt any Antarctic facility or activity of 
     any department, agency, or instrumentality in the executive 
     branch from compliance with such a requirement if he 
     determines it to be in the paramount interest of the United 
     States to do so. No such exemption shall be granted due to 
     lack of appropriation unless the President shall have 
     specifically requested such appropriation as a part of the 
     budgetary process and the Congress shall have failed to make 
     available such requested appropriation. Any exemption shall 
     be for a period not in excess of one year, but additional 
     exemptions may be granted for periods not to exceed one year 
     upon the President's making a new determination. The 
     President shall report each January to the Congress all 
     exemptions from the requirements of this section granted 
     during the preceding calendar year, together with his or her 
     reason for granting each such exemption.

     SEC. 15. ADMINISTRATIVE ENFORCEMENT.

       (a) Administrative Compliance Orders.--
       (1) Whenever, on the basis of any information, the 
     implementing agency determines that any person has violated 
     or is in violation of any requirement of this Act, or any 
     permit issued or regulation promulgated under this Act, such 
     agency may, after notice and opportunity for a hearing in 
     accordance with subsection (c) of this section, issue an 
     order requiring compliance immediately or within a specified 
     time period, or both.
       (2) Upon the failure of any person against whom a 
     compliance order is issued to take corrective action within 
     the time specified in the order, and after notice and an 
     opportunity for a hearing in accordance with subsection (c) 
     of this section, the implementing agency may request the 
     Attorney General to institute a civil action in either the 
     U.S. District Court for the District of Columbia or for any 
     district in which such person is found, resides or transacts 
     business to enforce such order.
       (b) Assessment of Penalties.--
       (1) Any person who is found by the implementing agency, 
     after notice and opportunity for a hearing in accordance with 
     subsection (c) of this section, to have committed any act 
     prohibited by section 4 shall be liable to the United States 
     for a civil penalty. The amount of the civil penalty shall 
     not exceed 50,000 dollars for each violation. Each day of a 
     continuing violation shall constitute a separate offense. The 
     amount of such civil penalty shall be assessed by written 
     notice. In determining the amount of such penalty, the 
     implementing agency shall take into account the nature, 
     circumstances, extent, and gravity of the prohibited acts 
     committed, and, with respect to the violator, the degree of 
     culpability, any history of prior offenses, any economic 
     benefit derived from the violation, and such other matters as 
     justice may require, to the extent such information is 
     reasonably available to the implementing agency.
       (2) The implementing agency may compromise, modify, or 
     remit, with or without conditions, any civil penalty which is 
     subject to imposition or which has been imposed under this 
     section.
       (c) Hearings.--Hearings for administrative actions under 
     this section shall be conducted in accordance with section 
     554 of Title 5. For the purposes of conducting any such 
     hearing, the implementing agency may issue subpoenas for the 
     attendance and testimony of witnesses and the production of 
     relevant papers, books, and documents, and may administer 
     oaths. Witnesses summoned shall be paid the same fees and 
     mileage that are paid to witnesses in the courts of the 
     United States. In case of contempt or refusal to obey a 
     subpoena served upon any person under this subsection, the 
     district court of the United States for any district in which 
     such person is found, resides, or transacts business, upon 
     application by the United States and after notice to such 
     person, shall have jurisdiction to issue an order requiring 
     such person to appear and give testimony before the 
     implementing agency or to appear and produce documents before 
     the implementing agency, or both, and any failure to obey 
     such order of the court may be punished by such court as a 
     contempt thereof.
       (d) Review of Administrative Actions.--Any person against 
     whom an administrative action has been taken under this 
     section may obtain review thereof in the U.S. District Court 
     for the District of Columbia by filing a complaint in such 
     court within 30 days from the date of such order and by 
     simultaneously sending a copy of such complaint, by certified 
     mail to the implementing agency, the Attorney General and the 
     appropriate United States Attorney. The implementing agency 
     shall promptly file in such court a certified copy of the 
     record upon which the violation was found or such penalty 
     imposed, as provided in section 2112 of Title 28. Such court 
     shall not set aside or remand such order unless there is not 
     substantial evidence in the record, taken, as a whole, to 
     support the finding of a violation or unless the implementing 
     agency's assessment of the penalty constitutes an abuse of 
     discretion. In any such proceeding, the United States may 
     seek to recover the civil penalty assessed under this 
     section.
       (e) Action Upon Failure To Pay Assessment.--If any person 
     fails to pay an assessment of a civil penalty after it has 
     become a final and unappealable order, or after the court has 
     entered final judgment in favor of the implementing agency, 
     the implementing agency shall request the Attorney General of 
     the United States to bring a civil action to recover the 
     amount assessed in any appropriate district court of the 
     United States. In such action, the validity and 
     appropriateness of the final order imposing the civil penalty 
     shall not be subject to review.
       (f) In Rem Jurisdiction.--Any vessel, vehicle or aircraft 
     (including its gear, furniture, appurtenances, stores, and 
     cargo) used in the commission of an act prohibited by section 
     4 shall be liable in rem for any civil penalty assessed for 
     such violation under this section and may be proceeded 
     against in any district court of the United States having 
     jurisdiction thereof. Such penalty shall constitute a 
     maritime lien on such vessel which may be recovered in an 
     action in rem in the district court of the United States 
     having jurisdiction over the vessel.

     Sec. 16. CIVIL JUDICIAL ENFORCEMENT.

       (a) Civil Judicial Enforcement.--Whenever, on the basis of 
     any information, the implementing agency determines that a 
     person has violated or is in violation of any requirement of 
     this Act or any permit issued or regulation promulgated under 
     this Act, such agency may request the Attorney General to 
     commence a civil action in either the U.S. District Court of 
     the District of Columbia, or for any district in which such 
     person is found, resides, or transacts business, for 
     appropriate relief, including a temporary or permanent 
     injunction or to assess and recover a civil penalty not to 
     exceed 50,000 dollars per day for each past or ongoing 
     violation, or both. Each day of continuing violation shall 
     constitute a separate offense.
       (b) Factors Considered in Determining Amount.--In 
     determining the amount of such penalty, the court shall take 
     into account the nature, circumstances, extent, and gravity 
     of the prohibited act committed, and, with respect to the 
     violator, the degree of culpability, and history of prior 
     offenses, any economic benefit derived from the violation, 
     and such other matters as justice may require.
       (c) Imminent Hazard.--Notwithstanding any other provision 
     of this Act, upon receipt of evidence that a person's past or 
     present activities may present an imminent and substantial 
     endangerment to human health or the environment in 
     Antarctica, the Director, in consultation with the 
     Administrator, may request the Attorney General to bring suit 
     on behalf of the United States in either the U.S. District 
     Court for the District of Columbia, or for any district in 
     which such person is found, resides, or transacts business, 
     against any person who has contributed to or who is 
     contributing to such activities to restrain such person from 
     such activities, to order such person to take other action as 
     may be necessary, or both. The Director, in consultation with 
     the Administrator, may also take other action under this 
     section, including but not limited to issuing such orders as 
     may be necessary to protect human health or the environment 
     in Antarctica, and undertaking corrective action and 
     recovering costs of such action.

     SEC. 17. CRIMINAL OFFENSES.

       (a) Offenses.--Any person who knowingly commits any act 
     prohibited by section 4 shall, upon conviction, be punished 
     by a fine of not more than $50,000 per day of the violation, 
     or by imprisonment for not more than five years, or by both; 
     except that if in the commission of any such offense the 
     person uses a dangerous weapon, engages in conduct that 
     causes bodily injury to any officer or employee of the United 
     States carrying out the powers specified in section 19(b)(1), 
     or places any such officer or employee in fear of imminent 
     bodily injury, the maximum fine shall be as provided in Title 
     18 and the maximum imprisonment shall be as provided in Title 
     18 and the maximum imprisonment shall be ten years. Each day 
     of a continuing violation shall constitute a separate 
     offense. If a conviction of a person is for a violation 
     committed after a first conviction of such person under this 
     paragraph, the maximum punishment shall be doubled with 
     respect to both fine and imprisonment.
       (b) Federal Jurisdiction.--There is federal jurisdiction 
     over any offense described in subsection (a) of this section.
       (c) Other Criminal Offenses.--Nothing in this Act shall be 
     construed to limit the jurisdiction of the United States over 
     other criminal offenses which may occur in Antarctica.

     SEC. 18. CIVIL FORFEITURE.

       (a) In General.--Any vessel, vehicle or aircraft (including 
     its gear, furniture, appurtenances, stores and cargo), and 
     any guns, traps, and other equipment used, and any animal, 
     plant, Antarctic mineral resource (or the fair market value 
     thereof), or other property recovered, taken, or possessed, 
     in any manner, including any proceeds thereof, in connection 
     with or as a result of the commission of any act prohibited 
     by section 4 shall be subject to forfeiture to the United 
     States. All or part of such vessel, vehicle or aircraft may, 
     and all of any such animal, plant, or Antarctic mineral 
     resource (or fair market value thereof), shall be forfeited 
     to the United States pursuant to a civil proceeding under 
     this section.
       (b) Jurisdiction of District Courts.--Any district court of 
     the United States shall have jurisdiction, upon application 
     by the Attorney General on behalf of the United States, to 
     order any forfeiture authorized under subsection (a) of this 
     section and any action provided for under subsection (d) of 
     this section.
       (c) Judgment.--If a judgment is entered for the United 
     States in a civil forfeiture proceeding under this section, 
     the Attorney General may seize any property or other interest 
     declared forfeited to the United States, which has not 
     previously been seized under this Act or for which security 
     has not previously been obtained under subsection (d) of this 
     section. The provisions of the customs laws relating to--
       (1) the seizure, forfeiture, and condemnation of property 
     for violation of the customs law;
       (2) the disposition of such property or the proceeds from 
     the sale thereof; and
       (3) the remission or mitigation of any such forfeiture;

     shall apply to seizures and forfeitures incurred, or alleged 
     to have been incurred, under the provisions of this Act, 
     unless such customs law provisions are inconsistent with the 
     purposes, policy, and provisions of this Act, except that all 
     powers, rights, and duties conferred or imposed by the 
     customs laws upon any officer or employee of the Customs 
     Services shall, for the purposes of this Act, be exercised or 
     performed by the implementing agency.
       (d) Procedure.--(1) Any officer authorized to serve any 
     process in rem which is issued by a court under this Act 
     shall--
       (A) stay the execution of such process; or
       (B) discharge any property seized pursuant to such process;

     upon the receipt of a satisfactory bond or other security 
     from any person claiming such property. Such bond or other 
     security shall be conditioned upon such person (i) delivering 
     such property to the appropriate court upon order thereof, 
     without any impairment of its value, or (ii) paying the 
     monetary value of such property pursuant to an order of such 
     court. Judgment shall be recoverable on such bond or other 
     security against both the principal and any sureties in the 
     event that any condition thereof is breached, as determined 
     by such court. Nothing in this paragraph may be construed to 
     require the implementing agency, except in such agency's 
     discretion or pursuant to the order of a court, to release on 
     bond any seized property or the proceeds from the sale 
     thereof.
       (2) Except as provided in subsection (e) of this section, 
     any property seized under this Act may be sold, subject to 
     regulations promulgated by the implementing agency, for not 
     less than the fair market value thereof. The proceeds of any 
     such sale shall be deposited with such court pending the 
     disposition of the matter involved.
       (e) Disposal.--Notwithstanding any other provision of law, 
     upon the forfeiture to the United States of any property or 
     item described in subsection (a) of this section, or upon the 
     abandonment or waiver of any claim to any such property or 
     item, it shall be disposed of by the implementing agency in 
     such manner (including, but not limited to loan, sale, gift 
     or destruction), consistent with the purposes of the Act, as 
     may be prescribed by regulation; except that no native 
     mammal, native bird, or native plant may be disposed of by 
     sale to the public.

     SEC. 19. POWERS OF AUTHORIZED ENFORCEMENT OFFICERS AND 
                   EMPLOYEES.

       (a) General Responsibility.--The provisions of the Act and 
     of any regulation promulgated or permit issued under this Act 
     shall be enforced by the authorized officers or employees 
     designated by the Director, the Secretary, the Administrator, 
     the Secretary of the Treasury, the Secretary of the 
     department in which the Coast Guard is operating or the 
     Secretary of State. Each such agency may by agreement, on a 
     reimbursable basis or otherwise, utilize the personnel, 
     services, equipment (including aircraft and vessels) and 
     facilities of any other department or agency of the United 
     States in the performance of such duties.
       (b) Specific Powers.--Any officer or employee of the United 
     States who is authorized (by an enforcing agency, or the head 
     of any department or agency of the United States which has 
     entered into an agreement with an enforcing agency under 
     subsection (a) of this section) to enforce the provisions of 
     this Act and of any regulation promulgated or permit issued 
     under this Act may--
       (1) secure, execute, and serve any order, warrant, 
     subpoena, or other process, which is issued under the 
     authority of the United States or by any court of competent 
     jurisdiction;
       (2) with or without a warrant or other process--
       (A) search any person, place, vessel, vehicle, or aircraft 
     subject to the provisions of this Act where there are 
     reasonable grounds to believe that evidence of a violation of 
     this Act will be found;
       (B) board, and search or inspect, any vessel, vehicle or 
     aircraft subject to the provisions of this Act;
       (C) seize any evidence relating to a violation of this Act;
       (D) seize any animal, plant, Antarctic mineral resource, 
     prohibited product or prohibited waste, wherever such item 
     may be found, which is or has been recovered, taken or 
     possessed in violation of this Act;
       (E) seize any vessel, vehicle or aircraft subject to the 
     provisions of this Act (including its gear, furniture, 
     appurtenances, stores and cargo), or any guns, traps or other 
     equipment used in, or that reasonably appears to have been 
     used in, a violation of this Act;
       (F) detain for inspection and inspect any package, crate, 
     or other container, including its contents, and all 
     accompanying documents, upon importation into or exportation 
     from, the United States; and
       (G) arrest any person, if he or she has reasonable cause to 
     believe that such person has committed an act prohibited by 
     section 4;
       (2) offer and pay a reward to any person who furnishes 
     information which leads to an arrest, conviction, civil 
     penalty assessment, permit sanction, compliance order, 
     injunction, or forfeiture of property for any violation of 
     any provision of this Act;
       (3) make inquiries, and administer to, or take from, any 
     person an oath, affirmation or affidavit, concerning any 
     matter which is related to the enforcement of such 
     provisions; and
       (4) exercise any other authority which such officer or 
     employee is permitted by law to exercise.

     SEC. 20. MISCELLANEOUS ENFORCEMENT PROVISIONS.

       (a) Regulations.--Each agency that has responsibility for 
     implementing and enforcing this Act may promulgate such 
     regulations as may be appropriate to enforce the provisions 
     of this Act and of any regulations promulgated or permits 
     issued under this Act, and charge reasonable fees for the 
     expenses of the United States incurred in carrying out 
     inspections and in transferring, boarding, handling, or 
     storing animals, plants, Antarctic mineral resources and any 
     other property seized or forfeited under this Act.
       (b) Burden of Proof.--In connection with any action 
     alleging a violation of this Act, or implementing 
     regulations, any person claiming the benefit of any exemption 
     or permit shall have the burden of proving that the exemption 
     applies or that the permit is applicable, has been granted, 
     was valid and was in force at the time of the alleged 
     violation.
       (c) Statute of Limitations.--The statute of limitations for 
     initiating an administrative or judicial enforcement 
     proceeding shall begin to run at the time a violation is 
     discovered by any of the authorities listed in section 19 and 
     shall run for a period of five years.
       (d) Action Against Permit.--If any person fails to pay a 
     civil penalty or criminal fine, the implementing agency may 
     suspend or deny any permit issued to or applied for by such 
     person. The implementing agency shall reinstate such permit 
     or permit application upon payment of the penalty or fine and 
     interest thereon at the prevailing rate.
       (e) payment of Storage and Other Costs.--Notwithstanding 
     any other provision of law, the implementing agency may 
     retain sums it receives as fines, penalties, and forfeitures 
     of property for violations of any provisions of this Act, and 
     shall pay from such sums--
       (1) the reasonable and necessary costs it incurs in 
     connection with the seizure and forfeiture of property under 
     this Act, including in providing temporary storage, care, and 
     maintenance of such property pending disposition of any civil 
     or criminal proceeding alleging a violation of any provision 
     of this Act;
       (2) to a qualifying person any reward offered under section 
     19;
       (3) any expenses directly related to investigations and 
     civil and criminal enforcement proceedings, including any 
     necessary expenses for equipment, training, travel, 
     witnesses, and contracting services directly related to such 
     investigations or proceedings;
       (4) any valid liens or mortgages against any property that 
     has been forfeited;
       (5) claims of parties in interest to property disposed of 
     under section 612(b) of the Tariff Act of 1930 (19 U.S.C. 
     1612(b)) or under other provision of the customs laws, as 
     made applicable by this Act to seizures under this Act, in 
     amounts determined by the implementing agency to be 
     applicable to such claims at the time of seizure; and
       (6) reimbursement to any agency for services performed, or 
     personnel, equipment, or facilities utilized, under any 
     agreement entered into under section 19, or any similar 
     agreement authorized by law.
       (f) Proceedings Under Other Laws.--Legal proceedings 
     brought under any section of this Act with respect to any act 
     shall not be deemed to preclude proceedings with respect to 
     such act under any other provision of this Act or any other 
     law.
       (g) Information Gathering Authority.--For the purposes of 
     enforcing the provisions of this Act, or any permit issued or 
     regulation promulgated under this Act--
       (1) the implementing agency may require any person who has 
     undertaken activities in Antarctica to--
       (A) furnish information relating to his or her activities 
     in Antarctica; or
       (B) sample any wastes, emissions, discharges, or releases; 
     and
       (2) the implementing agency or its authorized 
     representative may at reasonable times have access to and 
     copy any records relating to activities in Antarctica, and 
     sample any wastes, emissions, discharges, or releases that 
     such person is required to sample under paragraph (1) of this 
     subsection.

     SEC. 21. JUDICIAL ACTIONS.

       A district court of the United States which has 
     jurisdiction over any case or controversy arising under the 
     provisions of this Act may, at any time--
       (a) enter restraining orders or prohibitions;
       (b) issue warrants, process in rem, or other process;
       (c) prescribe and accept satisfactory bonds or other 
     security; and
       (d) take such other actions as are in the interest of 
     justice.

     SEC. 22. FEDERAL AGENCY COOPERATION.

       (a) Each federal department or agency whose activities 
     affect Antarctica shall utilize, to the maximum extent 
     practicable, its authorities in furtherance of the purposes 
     of this Act, and shall cooperate with the Director in 
     carrying out the purposes of this Act.
       (b) The Director shall consult with the Administrator with 
     respect to enforcement of regulations promulgated under 
     section 6(e), and with respect to determining compliance with 
     the terms and conditions of permits issued under section 
     5(g)(2).

     SEC. 23. RELATIONSHIP TO EXISTING INTERNATIONAL AGREEMENTS, 
                   STATUTES, REGULATIONS, AND PERMITS.

       (a) In General.--Nothing in this Act shall be construed as 
     contravening or superseding the provisions of any treaty or 
     other international agreement, if such treaty or agreement is 
     in force with respect to the United States on the date of 
     enactment of this Act, or the provisions of any statute 
     except as provided in subsections (b) and (c) of this 
     section.
       (b) Statute.--For purposes of any Antarctic mineral 
     resource, the provisions of this Act prevail over any 
     inconsistent provision of the Deep Seabed Hard Mineral 
     Resources Act (30 USC 1401-1471).
       (c) Repeal of Statutes.--The Antarctic Conservation Act of 
     1978 (16 USC 2401 et seq.) and the Antarctic Protection Act 
     of 1990 (16 USC 2461 et seq.) are hereby repealed.
       (d) Savings Provisions.--
       (1) All regulations promulgated under the Antarctic 
     Conservation Act of 1978 (16 USC 2401 et seq.) shall remain 
     in effect until the Director, the Secretary, the 
     Administrator, the Secretary of the Department in which the 
     Coast Guard is operating, or the Secretary of State, as the 
     case may be, promulgates superseding regulations under 
     sections 6, 7, or 8.
       (2) All permits issued under the Antarctic Conservation Act 
     of 1978 (16 USC 2401 et seq.) shall remain in effect until 
     they expire in accordance with the terms of those permits.

     SEC. 24. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary for each of fiscal years 1994 and 1995 to carry out 
     this Act.
                                  ____



                                     U.S. Department of State,

                                Washington, DC, November 15, 1993.
     Hon. Al Gore,
     President of the Senate.
       Dear Mr. President: I have the honor to transmit for the 
     consideration of the Congress a draft bill, entitled the 
     Antarctic Environmental Protection Act of 1993, implementing 
     the Protocol on Environmental Protection to the Antarctic 
     Treaty, and four annexes thereto, done at Madrid on October 
     4, 1991, and an additional annex done at Bonn on October 17, 
     1991. The Protocol, with all five annexes, received the 
     advice and consent to ratification of the Senate on October 
     7, 1992.
       The draft bill repeals the Antarctic Conservation Act of 
     1978 (16 U.S.C. Sec. 2401 et seq.) and replaces it with 
     legislation which enacts measures to implement the provisions 
     of the Protocol and annexes. It also repeals the Antarctic 
     Protection Act of 1990 (16 U.S.C. Sec. 2461 et seq.) and 
     creates a new prohibition on mineral resource activities in 
     Antarctica consistent with the Protocol.
       The Omnibus Budget Reconciliation Act (OBRA) requires that 
     all revenue and direct spending legislation meet a pay-as-
     you-go requirement. That is, no such bill should result in an 
     increase in the deficit; and if it does, it will trigger a 
     sequester if not fully offset. Collections and fines in this 
     bill would recover any pay-as-you-go costs, resulting in a 
     net zero pay-as-you-go effect.
       We are advised by the Office of Management and Budget that 
     there is no objection to our submission of this legislative 
     proposal to the Congress, and that its enactment would be in 
     accord with the President's program.
       Please do not hesitate to contact me if we can be of 
     further assistance.
           Sincerely,

                                             Wendy R. Sherman,

                                              Assistant Secretary,
                                              Legislative Affairs.
                                  ____


                     Statement of Purpose and Need

       The attached draft bill, called the Antarctic Environmental 
     Protection Act of 1993, contains proposed legislation to 
     implement the Protocol on Environmental Protection to the 
     Antarctic Treaty.


                              the protocol

       The Antarctic Treaty Consultative Parties adopted and 
     opened for signature the Protocol on Environmental Protection 
     to the Antarctic Treaty, including four annexes, on October 
     4, 1991, in Madrid.
       All 26 Consultative Parties, including the United States, 
     have signed the Protocol. The Consultative Parties adopted an 
     additional annex to the Protocol at Bonn on October 17, 1991. 
     The Senate gave its advice and consent to ratification of the 
     Protocol, including the annexes, on October 7, 1992.
       The Protocol builds upon the Antarctic Treaty to extend and 
     improve the Treaty's effectiveness as a mechanism for 
     ensuring the protection of the Antarctic environment. The 
     Protocol is intended to replace existing recommendations 
     under the Treaty addressing the protection of the Antarctic 
     environment, including the Agreed Measures for the 
     Conservation of Antarctic Fauna and Flora. It does not affect 
     other agreements on the Antarctic to which the United States 
     is a party, such as the Convention on the Conservation of 
     Antarctic Marine Living Resources and the Convention on the 
     Conservation of Antarctic Seals.
       The Protocol designates Antarctic as a natural reserve, 
     devoted to peace and science. It prohibits mineral resource 
     activities, other than scientific research, in Antarctica. 
     Its annexes, which form an integral part of the Protocol, set 
     out specific rules on environmental impact assessment, 
     conservation of Antarctic fauna and flora, waste disposal and 
     management, the prevention of marine pollution, and area 
     protection and management. The Protocol establishes a 
     Committee for Environmental Protection to provide advice and 
     recommendations to the Antarctic Treaty Consultative Meetings 
     on the implementation of the Protocol, and includes 
     provisions on settlement of disputes.


                         the draft legislation

       The draft legislation is called the Antarctic Environmental 
     Protection Act of 1993. The legislation would repeal the 
     Antarctic Conservation Act of 1978 (``ACA''), Pub. L. No. 95-
     541 (16 U.S.C. Sec. Sec. 2401 et seq.) and the Antarctic 
     Protection Act of 1990 (``APA''), Pub. L. No. 101-594 (16 
     U.S.C. Sec. Sec. 2461 et seq,), and replace those Acts with 
     new provisions consistent with the Protocol.
       The draft legislation would establish a more comprehensive 
     statutory scheme for the protection of the Antarctic 
     environment than the ACA and APA currently provide. Based 
     upon the Protocol, the legislation would prohibit certain 
     actions, such as Antarctic mineral resource activity, 
     introduction of specified products, and open burning of waste 
     after March 1, 1994. The legislation would allow other 
     actions, such as disposal of waste, entry into specially 
     protected areas, and taking of or harmful interference with 
     Antarctic flora and fauna, only with a permit.
       The legislation would authorize the Director of the 
     National Science Foundation (``NSF Director''), the Secretary 
     of Commerce, the Administrator of the Environmental 
     Protection Agency (``EPA Administrator''), the Secretary of 
     State, and the Secretary of the Department in which the Coast 
     Guard operates to promulgate regulations to implement the 
     provisions of the Protocol. In particular, the legislation 
     would, inter alia, provide for:
       The NSF Director to promulgate regulations on protection of 
     flora and fauna, and of specially protected areas;
       The NSF Director, with the concurrence of the EPA 
     Administrator, to promulgate regulations on waste disposal 
     and management;
       The Secretary of Commerce to promulgate regulations on 
     Antarctic mineral resource activity;
       The Secretary of State to promulgate regulations on the 
     filing of advance notice of expeditions to and within 
     Antarctica; and
       The Secretary of the Department in which the Coast Guard is 
     operating to promulgate regulations on marine pollution.
       The legislation would implement the provisions of the 
     Protocol on environmental impact assessment, which are 
     consistent with the National Environmental Policy Act of 
     1969. The legislation would amend the Act to Prevent 
     Pollution from Ships, 33 U.S.C. Sec. 1901 et seq., to 
     implement the Protocol's provisions on marine pollution 
     contained in Annex IV.
       The legislation would provide for oversight of the United 
     States Antarctic Program through on-site inspections and 
     reports by governmental and non-governmental experts, with 
     a view to examining the overall compliance of the Program 
     with the legislation and the Protocol. The legislation 
     would provide that the Department of State would 
     coordinate an interagency study to determine whether 
     additional measures should be taken with respect to 
     tourism in Antarctica.
       The legislation would provide for effective civil and 
     criminal enforcement, including through administrative 
     compliance orders, assessment of penalties, civil judicial 
     enforcement, and criminal proceedings.
                                  ____


                      Section-by-Section Analysis


                         section 1. short title

       The short title of the proposed legislation is the 
     ``Antarctica Environmental Protection Act of 1993.''


                section 2. findings, purpose, and policy

       The legislation would find, in conformity with Article 2 of 
     the Protocol, that Antarctica is a natural reserve, devoted 
     to peace and science.
       The purpose of the bill is to provide legislative authority 
     to implement the Protocol.
       The legislation would incorporate the environmental 
     principles of Article 3 of the Protocol as a statement of 
     U.S. national policy.


                         section 3. definitions

       The bill draws on the Definitions section of the ACA, but 
     changes some definitions and adds others to conform with the 
     Protocol.
       The definition of ``person'' follows the example of the 
     Antarctic Marine Living Resources Convention Act of 1984 
     (``AMLR''). The legislation would apply to any natural or 
     corporate person subject to the jurisdiction of the United 
     States, including federal, state or local government 
     entities. The legislation would not change or affect the 
     provisions of the Foreign Sovereign Immunities Act of 1976, 
     Pub. L. 94-583, 90 Stat. 2891.


                       Section 4. Prohibited Acts

       Section 4(a) of the bill lists prohibited actions; section 
     4(b) lists actions that would be prohibited unless carried 
     out with a permit.
       Section 4(a)(1) would make it unlawful for any person to 
     engage in, provide assistance to, or knowingly finance any 
     Antarctic mineral resource activity. This provision reflects 
     article 7 of the Protocol, which states: ``Any activity 
     relating to mineral resources, other than scientific 
     research, shall be prohibited.'' This legislation would 
     repeal the APA, which was intended as an interim measure 
     pending entry into force of an international agreement 
     providing an indefinite ban on Antarctic mineral resource 
     activities. Article 7, which has no termination date and is 
     not reviewable for fifty years following entry into force of 
     the Protocol, constitutes such an indefinite ban.
       The legislation would prohibit several activities 
     concerning waste in Antarctica. It would be unlawful to: 
     introduce certain specified products; to dispose of certain 
     types of waste, except through removal; to engage in open 
     burning of waste after March 1, 1994; and to dispose of any 
     waste onto ice-free land areas or into fresh water systems. 
     In addition, section 4 (b) of the legislation would prohibit 
     disposal of any waste in Antarctica without a permit, except 
     as otherwise authorized under the Act to Prevent Pollution 
     from Ships. All of these prohibitions are based on provisions 
     of Annex III of the Protocol.
       Section 4(b) of the legislation would prohibit any person 
     from introducing into Antarctica any member of a non-native 
     species and from engaging in any taking or harmful 
     interference in Antarctica without a permit, in conformity 
     with Annex II of the Protocol.
       Section 4(b) would also prohibit entering specially 
     protected areas without a permit, in conformity with Annex V 
     of the Protocol.


                           section 5. permits

       The legislation would set out terms and conditions on the 
     issuance of permits by the NSF Director for activities 
     otherwise prohibited under section 4(b). The legislation 
     would require the Director to consult with the EPA 
     Administrator before issuing a permit to dispose of waste, 
     and to receive the concurrence of the Secretary of Commerce 
     before issuing a permit for a taking or harmful interference 
     in connection with the construction or operation of 
     scientific support facilities.
       The bill provides that the Director may modify, suspend or 
     revoke any permit where there is a change in conditions that 
     makes the permit inconsistent with the provisions of the 
     legislation or the Protocol.


                         section 6. regulations

       The legislation would authorize the NSF Director, the 
     Secretary of Commerce, the EPA Administrator, the Secretary 
     of State, and the Secretary of the Department in which the 
     Coast Guard operates to promulgate regulations to implement 
     the provisions of the Protocol. In particular, the 
     legislation would provide for:
       The NSF Director to promulgate regulations on protection of 
     flora and fauna, and of specially protected areas, in 
     accordance with specific requirements drawn from Annex II of 
     the Protocol;
       The NSF Director, with the concurrence of the EPA 
     Administrator, to promulgate regulations on waste disposal 
     and management, in accordance with specific requirements 
     drawn from Annex III of the Protocol;
       The Secretary of Commerce to promulgate regulations on 
     Antarctic mineral resource activity;
       The Secretary of State to promulgate regulations on the 
     filing of advance notice of expeditions to and within 
     Antarctica; and
       The Secretary of the Department in which the Coast Guard is 
     operating to promulgate regulations on marine pollution.
       The legislation would also provide authority to promulgate 
     additional regulations to implement the Protocol, including 
     regulations to address a situation not covered by the annexes 
     to the Protocol or in which a more rigorous or supplemental 
     requirement is necessary.


               section 7. environmental impact assessment

       The legislation would implement the provisions of the 
     Protocol on environmental impact assessment of federal agency 
     activities in Antarctica by applying the National 
     Environmental Policy Act of 1969 to the activities, as 
     specified in the legislation.
       The Protocol requires environmental impact assessment of 
     non-governmental activities, as well as governmental 
     activities, in Antarctica. The legislation would authorize 
     the EPA Administrator to promulgate regulations to provide 
     for the environmental impact assessment of non-governmental 
     activities, including tourism, consistent with the provisions 
     of Annex I of the Protocol.


                         section 8. monitoring

       The legislation would authorize the NSF Director, in 
     consultation with the EPA Administrator, to promulgate 
     regulations to provide for procedures to assess and verify 
     the environmental impact of activities that proceed following 
     a determination that they will have more than a minor or 
     transitory impact on the Antarctic environment or dependent 
     and associated ecosystems.


                      section 9. marine pollution

       The legislation would amend the Act to Prevent Pollution 
     from Ships, to implement the Protocol's provisions on marine 
     pollution contained in Annex IV.


                       section 10. representation

       The legislation would provide that the Secretary of State, 
     with the concurrence of appropriate agency officials, would 
     appoint the U.S. representative to the Committee for 
     Environmental Protection created under the Protocol.


                         section 11. oversight

       The legislation would provide that the Secretary of State, 
     in conjunction with the EPA Administration and the Secretary 
     of Commerce, will inspect the U.S. Antarctic Program at 
     appropriate intervals of between two and five years. The 
     inspection team will conduct on-site inspections of stations, 
     field camps, and operations, and review any other relevant 
     information, with a view to examining the overall compliance 
     of the U.S. Antarctic Program with the legislation and the 
     Protocol.
       The inspection team will prepare a report which documents 
     its findings, specifies any examples of failures of 
     compliance, and makes recommendations. The report, along with 
     any comments by the NSF Director on it, will be made public.


                 section 12. study of antarctic tourism

       The legislation would provide that the Department of State 
     will coordinate an interagency study to determine whether 
     additional measures should be taken with respect to tourism 
     in Antarctica. The legislation would provide that the study 
     would be completed within 24 months of the date of enactment 
     of the legislation.


                  section 13. rule making and petition

       The legislation would provide that any person may petition 
     for the promulgation, amendment, or repeal of any regulation. 
     Within 180 days of receipt of the petition, the agency 
     responsible for implementing the legislation shall grant or 
     deny the petition.


            section 14. judicial review and citizens' suits

       The legislation would provide for judicial review of final 
     regulations, the denial of petitions under section 13, and 
     final agency action on any permit. It would also provide for 
     citizens' suits, to help to ensure effective implementation 
     of the provisions of the Act.


                 section 15. administrative enforcement

       The legislation would provide that when an agency 
     implementing the legislation determines that any person is in 
     violation of any requirement of the Act, or any regulation or 
     permit under it, the agency may issue an order requiring 
     compliance. Any person who commits an act prohibited by the 
     legislation would be liable for a civil penalty up to 50,000 
     dollars for each day of the violation.


                 section 16. civil judicial enforcement

       An agency which determines that a person has violated any 
     requirement of the Act, or any regulation or permit under it, 
     could request the Attorney General to commence a civil action 
     to assess and recover a civil penalty against the person, up 
     to 50,000 dollars for each day of the violation.
       In addition, the legislation would authorize the Director 
     to request the Attorney General to bring suit against any 
     person whose past or present activities may present an 
     imminent and substantial endangerment to human health or the 
     environment in Antarctica, to restrain the person from the 
     activities, or to order the person to take other action as 
     may be necessary.


                     section 17. criminal offenses

       The legislation would provide that a person is guilty of a 
     criminal offense if he or she knowingly commits any act 
     prohibited by section 4 of the legislation. The offense would 
     be punishable by imprisonment for not more than five years, 
     or a fine, or both.


                      section 18. civil forfeiture

       The legislation would provide that any vessel, vehicle or 
     aircraft used in connection with any act prohibited by 
     section 4 would be subject to forfeiture by the United 
     States.


         Section 19. Powers of Authorized Enforcement Officers

       The legislation would provide that its provisions would be 
     enforced by authorized officers of designated agencies, 
     including the National Science Foundation, the Environmental 
     Protection Agency, the Secretary of Commerce, and the Coast 
     Guard, and would provide the officers specific enforcement 
     authority (such as conducting searches and seizures and 
     making arrest).


            Section 20. Miscellaneous Enforcement Provisions

       This provision would make clear that agencies with 
     responsibility for implementing and enforcing the legislation 
     may promulgate appropriate regulations to that end. The 
     legislation would provide that the statute of limitations for 
     initiating an administrative or judicial enforcement 
     proceeding will be five years.


                      Section 21. Judicial Actions

       This section would provide that courts with jurisdiction 
     over cases arising under the legislation may enter 
     restraining orders, issue warrants, prescribe and accept 
     bonds or other security, or take other actions in the 
     interest of justice.


                 Section 22. Federal Agency Cooperation

       This section, which is identical to language in the ACA, 
     would provide that every federal department or agency whose 
     activities affect Antarctica will use its authorities in 
     furtherance of the purposes of the legislation, and will 
     cooperate with the NSF Director in carrying out those 
     purposes.


   Section 23. Relationship to Existing International Agreements and 
                                Statutes

       The bill provides that the legislation shall not be 
     construed to contravene or supersede the provisions of any 
     treaty or other international agreement in force with respect 
     to the United States on the date of enactment of the Act. It 
     also provides that the legislation does not contravene or 
     supersede any statute, with the exception of those 
     specifically listed in this section.
       Section 23(b) is intended to assure that the Deep Seabed 
     Hard Mineral Resources Act, 30 U.S.C. Sec. Sec. 1401-1471, is 
     not construed to authorize prospecting or the issuance of 
     authorizations to engage in deep seabed mining in Antarctica.
       Section 23(c) would repeal the APA (which will expire upon 
     entry into force of the Protocol for the United States) and 
     the ACA, both of which would be superseded by this 
     legislation.


              Section 24. Authorization of Appropriations

       The legislation would authorize such sums as may be 
     necessary and appropriate for the fiscal year 1994 and 1995 
     to carry out the legislation.
                                 ______

      By Mr. BAUCUS (for himself and Mr. Lautenberg) (by request):
  S. 1834. A bill to amend the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, and for other purposes; to the 
Committee on Environment and Public Works, pursuant to the order of 
February 7, 1994, for consideration only of matters within that 
committee's jurisdiction, provided that if and when reported from 
committee, the bill be referred to the Committee on Finance for 
consideration only of matters within that committee's jurisdiction for 
a period not to exceed 30 session days.


                      superfund reform act of 1994

  Mr. BAUCUS. Mr. President, I rise, along with Senator Lautenberg, to 
introduce upon the request of the administration, legislation to reform 
and reauthorize our Nation's Superfund law. President Clinton, 
Administrator Browner, Secretary Bentsen, and many others in the 
administration deserve credit for their leadership in proposing much 
needed reforms to Superfund.
  This bill represents a year long effort to study Superfund, pinpoint 
the problems, and evaluate alternatives for reforming the program. 
Administrator Browner began the process early last year when she 
commissioned an advisory group of public and private representatives 
called the NACEPT group. This group took an honest look at Superfund 
and made recommendations on how to improve the program.
  Also last year the Keystone group, an independent and diverse group 
of leaders from government, industry, environmental, and civil rights 
organizations began examining Superfund. In late December, they 
completed their work, reaching consensus on a proposal that would 
substantially reform Superfund.
  This bill builds on the work and recommendations of NACEPT and the 
Keystone groups. It recognizes the problems with the existing law and 
proposes fundamental solutions. It proposes changes to lower litigation 
costs, achieve more rational and quicker cleanups, ensure that 
polluters pay their fair share, and strengthen the role of the States 
and enhance community involvement. It represents an excellent start for 
congressional action.


                          fair share liability

  One of the most troubling parts of Superfund is its unfair and highly 
litigious liability system. In 1980, when we passed Superfund we had 
hoped to quickly and cost-effectively clean up our Nation's most toxic 
dumps. To accomplish this task, we gave the Environmental Protection 
Agency broad legal authority to order any polluter at a site to pay for 
the entire cost of cleaning up that site.
  As it now stands, the EPA typically orders the larger polluters to 
clean up a site. They in turn sue smaller polluters, and their 
insurance companies, to recover some of the costs. In the end, the 
courts determine everyone's share.
  This liability system has become a cash cow for lawyers and has 
forced EPA and industry to spend more time and money finding culprits 
than cleaning up contaminated sites.
  The President's bill recognizes these problems and proposes a new 
system to more fairly allocate costs among polluters. Under the 
proposal polluters could use an independent arbitrator to determine 
their fair share. If they don't they would be subject to the full force 
of the current liability system.
  The bill also proposes an exemption from Superfund entirely for the 
smallest polluters, the so called de micromis parties. It proposes an 
expedited settlement process for small businesses, de minimis 
polluters, and municipalities to get them out of the Superfund system 
more quickly and more fairly by considering their ability to pay. And 
it caps liability facing municipal waste generators and transporters.
  Finally the bill proposes a new insurance settlement fund, financed 
by insurers to substantially reduce the potential liability and 
litigation now facing insurers and PRPs.


                          commonsense cleanups

  Although these liability reforms should make Superfund more fair and 
less litigious, at the heart of Superfund's problems are slow, costly, 
unpredictable, ineffective, and often unnecessary cleanups and 
reluctance on the part of polluters to cleanup sites on their own, or 
try new technologies.
  It takes 9 years to even begin cleaning up a site and decades to 
finish the job at a cost of almost $30 million per site. We are 
throwing this money down the drain if we try to return sites to 
pristine conditions, when that's not technically feasible. Or if we 
cleanup sites where risks are negligible. The problem is that Cadillac 
remedies rob resources from sites where health threats are real and 
they delay all cleanups.
  The President's bill seeks to change this. It proposes to expedite 
cleanups by focusing on the worst problems first rather than 
concentrating on every problem, large and small, all at once.
  It does this by proposing national standards that should provide 
businesses with certainty and predictability. It gives polluters an 
incentive to cleanup pollution voluntarily and use innovative 
technology. It sets cleanup standards that are consistent with the type 
of land use at the site. It eliminates the controversial reasonable and 
appropriate requirements that have delayed cleanups. But it preserves 
legally applicable State cleanup standards and provides a safety net to 
ensure that highly contaminated areas, known as hot spots, are treated 
if possible.


                Enhanced State and Public Participation

  Finally the bill proposes to significantly expand the role of the 
public allowing citizens to participate in all parts of the Superfund 
process where key decisions are made. And it proposes to let States 
pick up and run the Superfund Program like they can under most other 
environmental laws.


                           An Excellent Start

  As I said at the outset, this proposal represents an excellent start 
for congressional action. Last year, Senator Lautenberg began the 
process for Senate action by holding 9 days of Superfund hearings. We 
heard from dozens of experts. They told us about the problems with the 
current program and offered suggestions for improvement.
  I am pleased that the proposed reforms in the President's bill seems 
to address many of the concerns raised during Senator Lautenberg's 
hearings.
  Next week, on February 10, Senator Lautenberg will continue the 
reauthorization process by holding the first Senate hearing on the 
administration's bill. And as we begin consideration of this bill, I 
will pay especially close attention to four areas:
  The nonbinding allocations system--that system must not simply 
transfer today's liability disputes from the courts to independent 
arbitrators. It must provide enough of an incentive so that PRP's will 
want to participate. And it must ensure that money will be available to 
pay for orphan shares if an independent arbitrator decides to allocate 
some costs to the Fund.
  The voluntary insurance settlement fund--it must be both affordable 
enough to insurers who will pay into the fund, and large enough to 
entice PRP's to participate in a voluntary settlement.
  The State delegation process--it must minimize Federal Government 
interference with States once they are authorized to run the Superfund 
Program.
  The cleanup goals and remedy section process--it must ensure that 
remedies will be done quickly, responsibility, and are fully protective 
of human health and the environment.
  Let me stress one final, point. We have a full plate of issues before 
us this year--the crime bill, health care, and welfare reform, as well 
as clean water and safe drinking water reauthorizations before my 
committee.
  Given these competing priorities we must continue to work together to 
broaden the consensus that we now have to fixing Superfund. In that 
spirit, I will be working with the Administrator, my Senate and House 
colleagues, and with others who are committed to Superfund reform. And 
I urge everyone to work together so that we can reach consensus on 
Superfund this Congress.
  Mr. President, I ask unanimous consent that the text of the 
administration's bill along with a summary be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1834

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS

       (a) Short Title.--This act may be cited as the ``Superfund 
     Reform Act of 1994''.
       (b) Table of Contents.--
Sec. 1. Short title; table of contents.
           TITLE I--COMMUNITY PARTICIPATION AND HUMAN HEALTH

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

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

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

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

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

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

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

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

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

           TITLE I--COMMUNITY PARTICIPATION AND HUMAN HEALTH

     SEC. 101. PURPOSES AND OBJECTIVES.

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

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

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

     SEC. 103. COMMUNITY WORKING GROUPS.

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

     SEC. 104. CITIZEN INFORMATION AND ACCESS OFFICES.

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

     SEC. 105. RESPONSE TO COMMENTS.

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

     SEC. 106. MULTIPLE SOURCES OF RISK DEMONSTRATION PROJECTS.

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

     SEC. 107. ASSESSING RISKS FROM MULTIPLE SOURCES.

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

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

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

     SEC. 109. DISEASE REGISTRY AND MEDICAL CARE PROVIDERS.

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

     SEC. 110. SUBSTANCE PROFILES.

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

     SEC. 111. DETERMINING HEALTH EFFECTS.

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

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

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

     SAC. 113. HEALTH STUDIES.

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

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

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

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

       Section 104(i)(15) of the Act (42 U.S.C. 9604(i)(15)) is 
     amended by--
       (a) inserting ``(A)'' before ``The activities'';
       (b) striking ``cooperative agreements with States (or 
     political subdivisions thereof)'' and inserting: ``grants, 
     cooperative agreements, or contracts with States (or 
     political subdivisions thereof), other appropriate public 
     authorities, public or private institutions, colleges, and 
     universities, and professional associations,'';
       (c) in the second sentence, inserting ``public'' before 
     ``health assessments''; and
       (d) adding a new subparagraph as follows--
       ``(B) When a public health assessment or related health 
     activity is conducted at a facility on, or a release being 
     evaluated for inclusion on the National Priorities List, the 
     Administrator of ATSDR may provide the assistance specified 
     in this paragraph to public or private non-profit entities, 
     individuals, and community-based groups who may be affected 
     by the release or threatened release of hazardous substances 
     in the environment.''.

     SEC. 116. PUBLIC HEALTH RECOMMENDATIONS IN REMEDIAL ACTIONS.

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

     SEC. 117. ATSDR NOTIFICATION.

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

                         TITLE II--STATE ROLES

     SEC. 201. STATE AUTHORITY.

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

     ``SEC. 127. STATE AUTHORITY

       ``(a) State Program Authorization.--
       ``(1) In general.--At any time after the promulgation of 
     the criteria required by paragraph (3) of this subsection, a 
     State may apply to the Administrator to carry out, under its 
     own legal authorities, response actions and enforcement 
     activities at all facilities listed or proposed for listing 
     on the National Priorities List, or certain categories of 
     facilities listed or proposed for listing on the National 
     Priorities List, within the State. This section shall not 
     apply to any facility owned or operated by a department, 
     agency, or instrumentality of the United States listed on the 
     National Priorities List if, on the date of enactment of the 
     Superfund Reform Act of 1994, an interagency agreement for 
     such facility has been entered into pursuant to section 
     120(a)(2).
       ``(2) Requirements for authorization.--If the Administrator 
     determines that the State possesses the legal authority, 
     technical capability, and resources necessary to conduct 
     response actions and enforcement activities in a manner that 
     is substantially consistent with this Act and the National 
     Contingency Plan at the facilities listed or proposed for 
     listing on the National Priorities List for which it seeks 
     authorization, the Administrator, pursuant to a contract or 
     agreement entered into between the Administrator and the 
     State, may authorize the State to assume the responsibilities 
     established under this Act at all such facilities or 
     categories of facilities. Except as otherwise provided in 
     this Act, such responsibilities include, but are not limited 
     to, responding to a release or threatened release of a 
     hazardous substance or pollutant or contaminant; selecting 
     response actions; expending the Fund in amounts authorized by 
     the Administrator to finance response activities; and taking 
     enforcement actions, including cost recovery actions to 
     recover Fund expenditures made by the State. In an 
     application for authorization, a State shall acknowledge its 
     responsibility to address all response actions at the 
     facilities for which it seeks authorization.
       ``(3) Promulgation of regulations.--The Administrator shall 
     issue regulations to determine a State's eligibility for 
     authorization and establish a process and criteria for 
     withdrawal of such an authorization. At a minimum, a State 
     must demonstrate--
       (A) that it has a process for allocating liability among 
     potentially responsible parties that is substantially 
     consistent with section 122a of this Act (as added by the 
     Superfund Reform Act of 1994);
       (B) that it provides for public participation in a manner 
     that is substantially consistent with section 117 of this Act 
     and the National Contingency Plan;
       (C) that it provides for selection and conduct of response 
     actions in a manner that is substantially consistent with 
     section 121 of this Act; and
       (D) that it provides for notification of and coordination 
     with trustees in a manner that is substantially consistent 
     with section 104(b)(2) and section 122(j)(1) of this Act.
       ``(b) Referral of Responsibilities.--
       ``(1) In general.--At any time after the promulgation of 
     the criteria required by paragraph (3) of this subsection, a 
     State may apply to the Administrator to carry out, under its 
     own legal authorities, response actions at a specific 
     facility or facilities listed or proposed for listing on the 
     National Priorities List, within the State.
       ``(2) Requirements for referral.--If the Administrator 
     determines that the State possesses the legal authority, 
     technical capability, and resources necessary to conduct 
     response actions and enforcement activities in a manner 
     substantially consistent with this Act and the National 
     Contingency Plan at the facilities listed or proposed for 
     listing on the National Priorities List facilities for which 
     it seeks referral, the Administrator, pursuant to a contract 
     or agreement entered into between the Administrator and the 
     State, may refer the responsibilities established under this 
     Act to the State for the facilities for which the State seeks 
     referral. Except as otherwise provided in this Act, such 
     responsibilities include, but are not limited to, 
     responding to a release or threatened release of a 
     hazardous substance or pollutant or contaminant; selecting 
     response actions; expending the Fund in amounts authorized 
     by the Administrator to finance response activites; and 
     taking enforcement actions, including cost recovery 
     actions to recover Fund expenditures made by the State.
       ``(3) Promulgation of regulations.--The Administrator shall 
     promulgate regulations to determine a State's eligibility for 
     referral and establish a process and criteria for withdrawal 
     of such referral. At a minimum, a State must demonstrate that 
     it meets the requirements described in subsection (a)(3).
       ``(c) Authorized Use of Fund.--At facilities listed on the 
     National Priorities List for which a State is authorized 
     under subsection (a), and at facilities listed on the 
     National Priorities List which are referred to a State under 
     subsection (b), the State shall be eligible for response 
     action financing from the Fund. The Administrator shall 
     ensure that all allocations of the Fund to the States for the 
     purpose of undertaking site-specific response actions are 
     based primarily on the relative risks to human health and the 
     environment posed by the facilities eligible for funding. The 
     amount of Fund financing for a State-selected response action 
     at a facility listed on the National Priorities List shall--
       ``(1) take into account the number and financial viability 
     of parties identified as potentially liable for response 
     costs at such facility, and
       ``(2) be limited to the amount necessary to achieve a level 
     of response that is not more stringent than that required 
     under this Act.

     A State also may obtain Fund financing to develop and enhance 
     its capacity to undertake response actions and enforcement 
     activities. The Administrator shall establish specific 
     criteria for allocating expenditures from the Fund among 
     States for the purposes of undertaking response actions and 
     enforcement activities at referred and State-authorized 
     facilities, and building state capacities to undertake such 
     response actions and enforcement activities. The 
     Administrator shall develop a program and provide an 
     appropriate level of Fund financing to assist Indian tribes 
     in developing and enhancing their capabilities to conduct 
     response actions and enforcement activities.
       ``(d) State Cost Share.--As provided in section 
     104(c)(3)(B) of this Act (as added by the Superfund Reform 
     Act of 1994), a State shall pay or assure payment of 15 
     percent of the costs of all response actions and program 
     support or other costs for which the State receives funds 
     from the Fund under this section. An Indian tribe authorized 
     to conduct a response actions and enforcement activities or 
     to which facilities have been referred under this section is 
     not subject to the cost-share requirement of this subsection.
       ``(e) Terms and Conditions; Cost Recovery.--A contract or 
     agreement for a State authorization or referral under this 
     section is subject to such terms and conditions as the 
     Administrator prescribes. The terms and conditions shall 
     include requirements for periodic auditing and reporting of 
     State expenditures from the Fund. The contract or agreement 
     may cover a specific facility, a category of facilities, or 
     all facilities listed or proposed to be listed on the 
     National Priorities List in the State. The contract or 
     agreement shall require the State to seek cost recovery, as 
     contemplated by this Act, of all expenditures from the Fund. 
     Five percent of the monies recovered by the State may be 
     retained by the State for use in its hazardous substance 
     response program, and the remainder shall be returned to the 
     Fund. Before making further allocations from the Fund to any 
     State, the Administrator shall take into consideration the 
     effectiveness of the State's enforcement program and cost 
     recovery efforts.
       ``(f) Enforcement of Agreements.--If the Administrator 
     enters into a contract or agreement with a State pursuant to 
     this section, and the State fails to comply with any terms 
     and conditions of the contract or agreement, the 
     Administrator, after providing sixty days notice, may 
     withdraw the State authorization or referral, or seek in the 
     appropriate federal district court to enforce the contract or 
     agreement to recover any funds advanced or any costs incurred 
     because of the breach of the contract or agreement by the 
     State.
       ``(g) More Stringent State Standards.--Under either an 
     authorization or referral, a State may select a response 
     action that achieves a level of cleanup that is more 
     stringent than required under section 121(d) of this Act if 
     the State agrees to pay for the incremental increase in 
     response cost attributable to achieving the more stringent 
     cleanup level. Neither the Fund nor any party liable for 
     response costs shall incur costs in excess of those necessary 
     to achieve a level of cleanup required under section 121(d) 
     of this Act.
       ``(h) Opportunity For Public Comment.--The Administrator 
     shall make available, for public review and comment, 
     applications for authorization under subsection (a) and 
     applications for referral under subsection (b). The 
     Administrator shall not approve or withdraw authorization or 
     referral from a State unless the Administrator notifies the 
     State, and makes public, in writing, the reasons for such 
     approval or withdrawal.
       ``(i) Periodic Review of Authorized State Programs and 
     Referrals.--The Administrator shall conduct a periodic review 
     of authorized State programs and referrals to determine, 
     among other things, whether--
       ``(1) the response actions were selected and conducted in a 
     manner that was substantially consistent with this Act, the 
     National Contingency Plan, and the contract or agreement 
     between the Administrator and the State;
       ``(2) the State response costs financed by Fund 
     expenditures were incurred in the manner agreed to by the 
     State, in accordance with the contract or agreement between 
     the Administrator and the State; and
       ``(3) the State's cost recovery efforts and other 
     enforcement efforts were concluded in accordance with the 
     contract or agreement between the Administrator and the 
     State.

     The Administrator, in consultation with the States, shall 
     develop specific criteria for periodic reviews of authorized 
     State programs and referrals. The Administrator shall 
     establish a mechanism to make the periodic State reviews 
     available to the public.
       ``(j) Modification of Response.--At a facility for which a 
     State selects a response action under an authorization or a 
     referral, the State shall afford the opportunity for public 
     participation in a manner that is substantially consistent 
     with the requirements of section 117(f)-(i) of this Act, and 
     shall give notice of and a copy of the proposed plan for 
     response action to the Administrator. The State also shall 
     give prompt written notice and a copy of the final decision 
     in selecting the response action to the Administrator. Within 
     90 days from the date of receipt of such notice and final 
     response action decision from the State, the Administrator 
     may issue a notice of a request to modify the State-selected 
     remedy. The Administrator's notice shall be in writing and 
     shall set forth basis for the Administrator's position, and 
     the final date for responding to the Administrator's request, 
     which shall be no less than 90 days from the date of the 
     notice. If the State's response does not resolve the 
     Administrator's concerns to the Administrator's satisfaction, 
     the Administrator may withhold the distribution of Fund 
     monies for the selected response action or may withdraw all 
     or part of the State's authorization or referral.
       ``(1) Effect of Section.--The President shall retain 
     authority to take response actions at facilities listed or 
     proposed for listing on the National Priorities List that are 
     not being addressed by a State under an authorization or 
     referral pursuant to this section. At facilities listed or 
     proposed for listing on the National Priorities List that are 
     being addressed by a State under either an authorization or a 
     referral, the President may take response actions that the 
     President determines necessary to protect human health or the 
     environment, if the State fails, after a request by the 
     Administrator to take such response actions in a timely 
     manner. A State does not have the authority, except pursuant 
     to this section, to take or order a response action, or any 
     other action relating to releases or threatened releases, at 
     any facility listed or proposed for listing on the National 
     Priorities List. This section does not effect the authority 
     of the United States under this Act to seek cost recovery for 
     costs incurred by the United States.
       (b) Transition and Conforming Amendments.--
       (1) Sections 104(c)(5), 104(c)(7), 104(d)(1) and 104(d)(2) 
     of the Act are each amended by inserting after the heading in 
     each paragraph the following--``This paragraph applies only 
     to response actions for which a Record of Decision or other 
     decision document is signed before the date of enactment of 
     the Superfund Reform Act of 1994 and response actions covered 
     by a contract or agreement for which a State has selected, 
     pursuant to the option provided in subsection (c)(3)(C) (as 
     added by the Superfund Reform Act of 1994), the funding 
     requirements set forth in subsection (c)(3)(A) (as amended by 
     Superfund Reform Act of 1994).'';
       (2) Section 114(a) of the Act is amended by striking 
     ``Nothing'' and inserting--``Except as otherwise provided in 
     this Act, noting'';
       (3) Section 12(f)(1) of the Act is amended by striking the 
     existing provisions and inserting--``The President may 
     repeal, no earlier than one year after the promulgation of 
     final regulations under sections 127(a)(3) and 127(b)(3), the 
     regulations issued under this paragraph prior to the date of 
     enactment of the Superfund Reform Act of 1994.'';
       (4) Section 121(f)(2) of the Act is amended by--
       (A) striking ``legally applicable or relevant and 
     appropriate'' from the second sentence of subparagraph (A); 
     and
       (B) striking ``subsection (d)(4)'' from the second sentence 
     of subparagraph (A) and inserting ``subsection (d)(5)(C)'';
       (5) Section 121(f)(3) of the Act is amended by--
       (A) striking ``legally applicable or relevant and 
     appropriate'' from the second sentence of subparagraph (A); 
     and
       (B) striking ``subsection (d)(4)'' from the second sentence 
     of subparagraph (A) and inserting ``subsection (d)(5)(C)''; 
     and
       (6) Section 302(d) of the Act is amended by striking 
     ``Nothing'' and inserting--``Except as otherwise provided in 
     this Act, noting''.

     SEC. 202. TRANSFER OF AUTHORITIES.

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

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

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

     SEC. 204. STATE ASSURANCES.

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

     SEC. 205. SITING.

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

     SEC. 206. THE NATIONAL PRIORITIES LIST.

       (a) Section 105(a)(8)(B) the Act (42 U.S.C. 9605(a)(8)(B)) 
     is amended by striking ``as part of the plan'', and by 
     inserting before ``Within'' the sentence ``The National 
     Priorities List, and any modifications to the National 
     Priorities List, may be adopted administratively, and without 
     rulemaking.''.
       (b) Section 105(a)(8) of the Act (42 U.S.C. 9606(a)(8)) is 
     amended by adding after subparagraph (B) the following new 
     subparagraph--
       ``(C) before determining that a facility is to be listed on 
     the National Priorities List, the Administrator shall publish 
     a notice proposing the facility for listing on the National 
     Priorities List and shall provide an opportunity for public 
     comment. Public notice and opportunity for comment also shall 
     be provided before a decision by the Administrator to remove 
     a facility from the National Priorities List. The 
     Administrator shall establish a procedure under which any 
     person may request that a facility be considered for listing 
     on, or removal from, the National Priorities List. The 
     Administrator has the sole discretion to list or remove a 
     facility on the National Priorities List.''.

     SEC. 207. THE STATE REGISTRY.

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

                     TITLE III--VOLUNTARY RESPONSE

     SEC. 301. PURPOSES AND OBJECTIVES.

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

     SEC. 302. STATE VOLUNTARY RESPONSE PROGRAM.

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

     ``SEC. 128. VOLUNTARY RESPONSE PROGRAM.

       ``(a) In General.--The Administrator shall establish a 
     program to provide technical and other assistance to the 
     States to establish and expand voluntary response programs.
       ``(b) Voluntary Response Program.--The Administrator shall 
     assist States to establish and administer a voluntary program 
     that--
       ``(1) covers all eligible facilities, as defined in 
     subsection (c) of this section, within the State;
       ``(2) provides adequate opportunities for public 
     participation, including prior notice and opportunity for 
     comment, in selecting response actions;
       ``(3) provides opportunities for technical assistance for 
     voluntary response actions;
       ``(4) has the capability, through enforcement or other 
     mechanisms, of assuming the responsibility for completing a 
     response action if the current owner or prospective purchaser 
     fails or refuses to complete the necessary response, 
     including operation and maintenance; and
       ``(5) provides adequate oversight and has adequate 
     enforcement authorities to ensure that voluntary response 
     actions are completed in accordance with applicable Federal 
     and State laws, including applicable permit requirements and 
     any on-going operation and maintenance or long-term 
     monitoring activities.
       ``(c) Eligible Facilities.--
       ``(1) Except as provided in paragraph 2 of this subsection, 
     the term ``eligible facility'' means a facility or portion of 
     a facility where there has been a release or threat of 
     release of a hazardous substance, pollutant, or contaminant 
     into the environment.
       ``(2) The term ``eligible facility'' does not include any 
     of the following--
       ``(A) a facility at which a remedial investigation and 
     feasibility study is underway, unless the Administrator, in 
     consultation with the State, determines that it is 
     appropriate to allow the response action at such a facility 
     to proceed under a voluntary response program;
       ``(B) a facility with respect to which a Record of Decision 
     has been issued under section 104 of this Act;
       ``(C) a facility with respect to which a corrective action 
     permit condition or order has been proposed, issued, 
     modified, or amended to require implementation of specific 
     corrective measures under section 3004(u), 3004(v), or 
     3008(h) of the Solid Waste Disposal Act [42 U.S.C. 6924(u), 
     6924(v), or 6928(h)]:
       ``(D) a land disposal unit with respect to which a closure 
     notification under subtitle C of the Solid Waste Disposal Act 
     (42 U.S.C. 6921 et seq.) has been submitted;
       ``(E) a facility with respect to which an administrative or 
     judicial order or decree concerning the response action has 
     been issued, sought, or entered into by the United States 
     under this Act, the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.), the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
     seq.), the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.), the Toxic Substances Control Act (15 U.S.C. 
     2601 et seq.) or title XIV of the Public Health Service Act, 
     commonly known as the Safe Drinking Water Act (42 U.S.C. 
     300(f) et seq.); and
       ``(F) a facility at which assistance for response 
     activities may be obtained under subtitle I of the Solid 
     Waste Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking 
     Underground Storage Tank Trust Fund established under section 
     9508 of the Internal Revenue Code of 1986.
       ``(3) A facility listed or proposed for listing on the 
     National Priorities List may be an ``eligible facility'' if--
       ``(A) the facility is not a facility identified in 
     paragraph (2);
       ``(B) the State in which the facility is located has 
     obtained a State authorization or referral under section 127 
     of this Act; and
       ``(C) the Administrator concurs in the State's 
     determination to address the facility under its voluntary 
     response program.
       ``(d) Annual Reporting.--The Administrator shall report, 
     not later than 1 year after enactment of this Act and 
     annually thereafter, to the Congress on the status of State 
     voluntary response programs including--
       ``(1) whether the State's voluntary response program 
     continues to meet the criteria set forth in subsection (b) or 
     (c);
       ``(2) whether the State has adopted procedures to ensure 
     that all response actions completed or undertaken under the 
     State's voluntary response program comply with all applicable 
     Federal and State laws;
       ``(3) whether public participation opportunities have been 
     adequate during the process of selecting a response action 
     for each voluntary response;
       ``(4) whether voluntary response actions completed or 
     undertaken under the State voluntary response program have 
     been implemented in a manner that has reduced or eliminated 
     risks to human health and the environment to the satisfaction 
     of the State;
       ``(5) whether voluntary response actions completed or 
     undertaken under the State voluntary response program at 
     facilities listed or proposed for listing on the National 
     Priorities List were conducted in accordance with section 
     121(d) of this Act; and
       ``(6) whether a voluntary response action has increased 
     risk to human health or the environment, and whether a State 
     has taken timely and appropriate steps to reduce or eliminate 
     that risk to human health or the environment.
       ``(i) Statutory Construction.--This section is not 
     intended--
       ``(1) to impose any requirement on a State voluntary 
     response program existing on or after the date of enactment 
     of this Act; or
       ``(2) to affect the liability of any person or response 
     authorities afforded under any law (including any regulation) 
     relating to environmental contamination, including this Act 
     (except as expressly provided in section 101(39)(D) (42 
     U.S.C. 9601(39)(D)), section 107(a)(5)(C) (42 U.S.C. 
     9607(a)(5)(C)), the Solid Waste Disposal Act (42 U.S.C. 6901 
     et. seq.), the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et. seq.), the Toxic Substances Control Act (15 U.S.C. 
     2601 et. seq.), or title XIV of the Public Health Service 
     Act, commonly known as the ``Safe Drinking Water Act'' (42 
     U.S.C. 300(f) et. seq.).''.

     SEC. 303. SITE CHARACTERIZATION PROGRAM.

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

     ``SEC. 129. SITE CHARACTERIZATION TECHNICAL ASSISTANCE 
                   PROGRAM.

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

                   TITLE IV--LIABILITY AND ALLOCATION

     SEC. 401. RESPONSE AUTHORITIES.

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

     SEC. 402. COMPLIANCE WITH ADMINISTRATIVE ORDERS.

       (a) Section 106(a) of the Act (42 U.S.C. 9606(a)) is 
     amended by
       (1) inserting after the phrase ``hazardous substance'' the 
     phrase ``, or pollutant or contaminant''; and
       (2) by adding at the end thereof the following: ``The 
     President may amend such orders and issue additional orders, 
     as appropriate, without a subsequent finding of an imminent 
     and substantial endangerment, to complete response action 
     undertaken in response to a release or substantial threat of 
     a release, or to require additional response actions that are 
     necessary or appropriate.''.
       (b) Section 106(b)(1) of the Act (42 U.S.C. 9606(b)(1)) is 
     amended
       (1) by striking out the phrase ``to enforce such order'', 
     and
       (2) by inserting before the period ``, or be required to 
     comply with such order, or both, even if another party has 
     complied, or is complying, with the terms of the same order 
     or another order pertaining to the same facility, release or 
     threatened release''; and
       (3) by inserting at the end of the paragraph the 
     following--

     ``For purposes of this title, a `sufficient cause' requires--
       ``(A) an objectively reasonable belief by the person to 
     whom the order is issued that the person is not liable for 
     any response costs under section 107 of this title; or
       ``(B) that the action to be performed pursuant to the order 
     is determined to be inconsistent with the national 
     contingency plan.

     The existence or results of an allocation process pursuant to 
     section 122a of this title shall not affect or constitute a 
     basis for a determination of `sufficient cause.'''.
       (c) Section 106(b)(2) is amended by moving the second 
     sentence of subsection (b)(2)(A) and redesignating it as 
     subsection (b)(4), and by striking the word ``paragraph'' in 
     such newly designated subsection (b)(4) and replacing it with 
     the word ``subsection''.
       (d) Section 106(b)(2)(A) of the Act (42 U.S.C. 
     9602(b)(2)(A)) is amended by striking out the phrase 
     ``completion of'', and inserting the phrase ``the President 
     determines that such person has completed''.
       (e) Section 106(b)(2)(C) of the Act (42 U.S.C. 
     9606(b)(2)(C)) is amended by inserting after the words 
     ``Subparagraph (D)'' the phrase ``, or as may be authorized 
     in a settlement entered into under section 122a of this 
     title.''.

     SEC. 403. LIMITATIONS TO LIABILITY FOR RESPONSE COSTS.

       Section 107 of the Act (42 U.S.C. 9607), is amended--
       (a) in subsection (a) by inserting--
       ``(5) Notwithstanding paragraphs (1) through (4) of this 
     subsection, a person who does not impede the performance of 
     response actions or natural resource restoration shall not be 
     liable--
       ``(A) to the extent liability is based solely on subsection 
     107(a)(3) or 107(a)(4) of this Act, and the arrangement for 
     disposal, treatment, or transport for disposal or treatment, 
     or the acceptance for transport for disposal or treatment, 
     involved less than five hundred (500) pounds of municipal 
     solid waste (MSW) or sewage sludge as defined in sections 
     101(41) and 101(44) of this Act, respectively, or such 
     greater or lesser amount as the Administrator may determine 
     by regulation;
       ``(B) to the extent liability is based solely on subsection 
     107(a)(3) or 107(a)(4) of this Act, and the arrangement for 
     disposal, treatment, or transport for disposal or treatment, 
     or the acceptance for transport for disposal or treatment, 
     involved less than ten (10) pounds or liters of materials 
     containing hazardous substances or pollutants or contaminants 
     or such greater or lesser amount as the Administrator may 
     determine by regulation, except where--
       ``(i) the Administrator has determined that such material 
     contributed significantly or could contribute to the costs of 
     response at the facility; or
       ``(ii) the person has failed to respond fully and 
     completely to information requests by the United States, or 
     has failed to certify that, on the basis of information 
     within its possession, it qualifies for this exception;
       ``(C) to the extent liability is based solely on subsection 
     107(a)(1) of this Act, for a release or threat of release 
     from a facility, and the person is a bona fide prospective 
     purchaser of the facility as defined in section 101(39);
       ``(D) to the extent the liability of a department, agency, 
     or instrumentality of the United States is based solely on 
     section 107(a)(1) or (2) with regard to a facility over which 
     the department, agency, or instrumentality exercised no 
     regulatory or other control over activities that directly or 
     indirectly resulted in a release of threat of a release of a 
     hazardous substance, and--
       ``(i) all activities that directly or indirectly resulted 
     in a release of threat of a release of a hazardous substance 
     during the period of ownership by the United States occurred 
     prior to 1976;
       ``(ii) the activities either directly or indirectly 
     resulting in a release or a threat of a release of a 
     hazardous substance at the facility were pursuant to a 
     statutory authority;''
       ``(iii) such department, agency, or instrumentality of the 
     United States did not cause or contribute to the release or 
     threat of release of hazardous substances or pollutants or 
     contaminants at the facility; and
       ``(iv) there are persons, other than the United States, who 
     are both potentially liable for the release of hazardous 
     substances or pollutants or contaminants at the facility and 
     fully capable of performing or financing the response action 
     at the facility; or
       ``(E) to the extent the liability of a federal or state 
     entity or municipality is based solely on its ownership of a 
     road, street, or other right of way or other public 
     transportation route over which hazardous substances are 
     transported, or the granting of a license or permit to 
     conduct business; or
       ``(F) for more than ten percent of total response costs at 
     the facility, in aggregate, for all persons to the extent 
     their whose liability is based solely on subsections 
     107(a)(3) or 107(a)(4) of this Act, and the arrangement for 
     disposal, treatment, or transport for disposal or treatment, 
     or the acceptance for transport for disposal or treatment 
     involved only municipal solid waste (MSW) or sewage sludge as 
     defined in sections 101(41) and 101(44), respectively, of 
     this Act. Such limitation on liability shall apply only--
       ``(i) where either the acts or omissions giving rise to 
     liability occurred before the date thirty-six (36) months 
     after enactment of this paragraph, or the person asserting 
     the limitation institutes or participates in a qualified 
     household hazardous waste collection program within the 
     meaning of section 101(43); and
       ``(ii) where the disposal did not occur on lands owned by 
     the United States or any department, agency, or 
     instrumentality thereof, or on any tribal land.''.
       (b) by inserting after subsection (m) the following--
       ``(n) Prospective purchaser and windfall lien.--Where there 
     are unrecovered response costs for which an owner of a 
     facility is not liable by operation of subsection 
     107(a)(5)(C) of this Act, and a response action for which 
     there are unrecovered costs inures to the benefit of such 
     owner, the United States shall have a lien upon the facility 
     for such unrecovered costs. Such lien--
       ``(1) shall not exceed the increase in fair market value of 
     the property attributable to the response action at the time 
     of a subsequent sale or other disposition of property;
       ``(2) shall be subject to the requirements for notice and 
     validity established in paragraph (3) of subsection (l) of 
     this section; and
       ``(3) shall continue until the earlier of satisfaction of 
     the lien, or recovery of all response costs incurred at the 
     facility.''.
       (c) Section 120 of the Act (42 U.S.C. 9620) is amended by 
     inserting before the word ``Facilities'' in the title of the 
     section the phrase ``Entities And''.
       (d) Section 120(a)(1) of the Act (42 U.S.C. 9620(a)(1)) is 
     amended--
       (1) after the word ``title'' in the first sentence on 
     inserting the phrase ``the right to contribution protection 
     set forth in Sections 113 and 122, when such department, 
     agency or instrumentality resolves its share of liability 
     under this Act and liability for all federal civil and 
     administrative penalties and fines imposed under this Act, 
     regardless of whether such penalties and fines are punitive 
     or coercive in nature or are imposed for isolated or 
     continuing violations.'';
       (2) by inserting the word ``other'' before the phrase 
     ``person or entity'' in the second sentence and by inserting 
     after the second sentence the following new sentence--

     ``The waiver of immunity in this section does not encompass 
     uniquely governmental actions such as--
       ``(A) any actions of any department, agency or 
     instrumentality, except for official seizure of or holding 
     title to a facility, taken pursuant to Federal authority to 
     regulate the economy in preparation for, during, or otherwise 
     in connection with war through the use and implementation of 
     national priority rating systems, national wage, profit and 
     price incentives or controls, or otherwise to mobilize the 
     national economy for war-related production; or
       ``(B) any actions of any department, agency, or 
     instrumentality taken in response to a natural disaster 
     pursuant to the Emergency Flood Control Work Act (33 U.S.C. 
     701(n)), or the Disaster Relief Act of 1974 (42 U.S.C. 5121 
     et seq.).'';
       (e) Section 120(a)(4) of the Act (42 U.S.C. 9620(a)(4) is 
     amended--
       (1) by inserting ``currently'' before ``owned'' in the 
     first sentence;
       (2) by inserting after the word ``United States'' the 
     phrase ``in the following circumstances: (A)''; and
       (3) by inserting after the word ``List'' ``; (B) when such 
     facilities are included on the National Priorities List but 
     are specifically referred to the State by the Administrator 
     pursuant to the provisions of section 127 of this Act; or (C) 
     when such laws are part of an authorized program approved by 
     the Administrator pursuant to section 127 of this Act, and 
     such facilities are included on the National Priorities List 
     and are to be addressed by the State authorized program 
     pursuant to section 127 of this Act.
       ``Each department, agency, or instrumentality of the United 
     States shall be subject to State requirements, both 
     substantive and procedural, respecting liability for the 
     costs of responding to releases or threats of releases of 
     hazardous substances of non-federally owned facilities 
     referred to the State pursuant to section 127 of this Act, or 
     such requirement that are part of a State authorized program 
     for non-federally owned facilities being addressed under a 
     State authorized program pursuant to section 127 of this 
     Act.'';
       (4) after the word ``preceding'' by replacing the word 
     ``sentence'' with ``sentences'';
       (5) at the end of the Section by adding ``This waiver of 
     immunity for such facilities shall include all civil and 
     administrative penalties and fines imposed under such 
     laws, regardless of whether such penalties and fines are 
     punitive or coercive in nature or are imposed for isolated 
     or continuing violations. Neither the United States, nor 
     any agent, employee or officer thereof, shall be immune or 
     exempt from any process or sanction of any State or 
     Federal Court with respect to the enforcement of any 
     appropriate relief under such laws, but the United States 
     shall be entitled to remove any action filed in state 
     court against any department, agency, instrumentality, 
     employee or officer of the United States to the 
     appropriate Federal district court. No agent, employee, or 
     officer of the United States shall be personally liable 
     for any civil or administrative penalty under any Federal 
     or State law with respect to any act or omission within 
     the scope of the official duties of the agent, employee, 
     or officer. All funds collected by a State from the 
     Federal Government from penalties and fines imposed for 
     violation of any substantive or procedural requirement 
     referred to in this subsection shall be used by the State 
     only for projects designed to improve or protect the 
     environment or to defray the costs of environmental 
     protection or enforcement.''.
       (f) Section 120(j)(1) of the Act (42 U.S.C. 9620(j)(1)) is 
     amended before the phrase ``with respect to the site'' in the 
     second sentence by inserting ``or any State law applicable 
     under Section 120(a)(4)''.

     SEC. 404.  LIABILITY.

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

     SEC. 405. CIVIL PROCEEDINGS.

       (a) Section 113(a) of the Act (42 U.S.C. 9613(a)) is 
     amended--
       (1) by striking out the phrase ``upon application by any 
     interested person'', and inserting the phrase ``by any 
     adversely affected person through the filing of a petition 
     for review''; and
       (2) by striking out the phrase ``application shall be 
     made'', and inserting in lieu thereof ``petition shall be 
     filed''.
       (b) Section 113(b) of the Act (42 U.S.C. 9613(b)) is 
     amended--
       (1) before ``without regard to the citizenship,'' by 
     inserting the phrase ``or in any manner limiting or affecting 
     the President's ability to carry out a response action under 
     this Title,''; and
       (2) by inserting immediately after the first sentence the 
     following sentence--``Any action initiated in any state or 
     local court against the United States (or any department, 
     agency, or instrumentality, officer or employee thereof) 
     pursuant to or under any provision of or authorized by this 
     Title may be removed by the United States to the appropriate 
     federal district court in accordance with Section 1446 of 
     Title 18 of the U.S. Code.''
       (c) Section 113(g) of the Act (42 U.S.C. 9613(g)) is 
     amended by striking paragraphs (2) and (3) and inserting--
       ``(2) Actions for recovery of costs.

     ``Except as provided in Paragraph (3) below, an initial 
     action for recovery of costs referred to in section 107 of 
     this title must be commenced--
       ``(A) for removal action, within three years after 
     completion of all removal action taken with respect to the 
     facility, including off-site disposal of any removed 
     materials; except that if physical on-site construction of 
     the remedial action is initiated within three years after the 
     completion of all removal action taken with respect to the 
     facility, costs incurred for removal action may be recovered 
     in the cost recovery action brought under subparagraph (B); 
     and
       ``(B) for a remedial action, within six years after 
     initiation of physical on-site construction of the remedial 
     action.
       ``In any such action described in this subsection, the 
     court shall enter a declaratory judgment on liability for 
     response costs or damages that will be binding on any 
     subsequent action or actions to recover further response 
     costs or damages. A subsequent action or actions under 
     section 107 of this title for further response costs at the 
     vessel or facility may be maintained at any time during the 
     response action, but must be commenced no later than three 
     years after the date of completion of all response action. 
     Except as otherwise provided in this paragraph, an action may 
     be commenced under section 107 of this title for recovery of 
     costs at any time after such costs have been incurred.
       ``(3) Contribution--

     ``An action by a potentially responsible party against 
     another potentially responsible party for recovery of any 
     response costs or damages must be commenced within the later 
     of--
       ``(A) the time limitations set forth in Paragraph (2) 
     above, or
       ``(B) where recovery is sought for costs or damages paid 
     pursuant to a judgment or settlement, three years after--
       ``(i) the date of judgment in any action under this Act for 
     recovery of such costs or damages, or
       ``(ii) the date of any administrative order or judicial 
     settlement for recovery of the costs or damages paid or 
     incurred pursuant to such a settlement.''.
       (d) Section 113(g) of the Act (42 U.S.C. 9613(g)) is 
     amended by inserting the following at the end thereof--
       ``(4) Claims by the United States, States or Indian tribes. 
     Claims by the United States under Section 106, and claims by 
     the United States, a State or Indian tribe under Section 
     107(a), of this Act shall not be deemed compulsory 
     counterclaims in an action against the United States, a State 
     or an Indian tribe seeking response costs, contributions, 
     damages, or any other claim by any person under this Act.''.
       (e) Section 113(j)(1) of the Act (42 U.S.C. 9613(j)(1) is 
     amended--
       (1) before the phrase ``or ordered'' by inserting the 
     phrase ``or selected by the President pursuant to this 
     Act,''; and
       (2) after the phrase ``or ordered'' by inserting the phrase 
     ``or sought''.

     SEC. 406. LIMITATIONS ON CONTRIBUTIONS ACTIONS.

       Section 113 of the Act (42 U.S.C. 9613) is amended--
       (a) by amending subsection (f)(1) as follows--
       (1) by redesignating the paragraph as subparagraph 
     ``(1)(A),'';
       (2) before the phrase ``may seek contribution'' by 
     inserting the phrase ``who is liable or potentially liable 
     under section 107(a) of this title'';
       (3) by striking out the phrase ``during or following any 
     civil action under section 106 of this title or under section 
     107(a) of this title'', and inserting in lieu thereof the 
     phrase ``in a claim asserted under section 107(a)''; and
       (4) by deleting the period at the end of the first 
     sentence, and inserting--

     ``except that there shall be no right of contribution where--
       ``(i) the person asserting the right of contribution has 
     waived such rights in a settlement pursuant to this Act;
       ``(ii) the person from whom contribution is sought is 
     liable solely under section 107(a)(3) of this Act, and 
     contributed less than ten pounds or ten liters of material 
     containing hazardous substances at the facility, or such 
     greater or lesser amount as the Administrator may determine 
     by regulation;
       ``(iii) the person from whom contribution is sought has 
     entered into a final settlement with the United States 
     pursuant to section 122(g).;
       (5) before the phrase ``this section and the Federal 
     Rules'' by inserting the phrase ``section 107(a),''; and
       (6) by striking out the sentence ``Nothing in this 
     subsection shall diminish the right of any person to bring an 
     action for contribution in the absence of a civil action 
     under section 106 of this title or section 107 of this 
     title.''.

       (b) by inserting after subparagraph (1)(A) the following 
     subparagraph--
       ``(B) Any person who commences an action for contribution 
     against a person who is not liable by operation of subsection 
     107(a)(5) of this Act, or against a person who is protected 
     from suits in contribution by this section or by a settlement 
     with the United States, shall be liable to the person against 
     whom the claim of contribution is brought for all reasonable 
     costs of defending against the claim, including all 
     reasonable attorney's and expert witness fees.''.
       (c) Section 113(f) of the Act (42 U.S.C. 9613(f)) is 
     amended by striking out paragraph (2), and inserting the 
     following--
       ``(2) Settlement.
       ``A person that has resolved its liability to the United 
     States in an administrative or judicially approved settlement 
     shall not be liable for claims by other persons regarding 
     response actions, response costs or damages addressed in the 
     settlement. A person that has resolved its liability to a 
     State in an administrative or judicially approved settlement 
     shall not be liable for claims by persons other than the 
     United States regarding response costs or damages addressed 
     in the settlement for which the State has a claim under this 
     title. Such settlement does not discharge any other 
     potentially responsible persons unless its terms so provide, 
     but it reduces the potential liability of such other persons 
     by the amount of the settlement. The protection afforded by 
     this section shall include protection against contribution 
     claims and all other types of claims, under federal or state 
     law, that may be asserted against the settling party for 
     recovery of response costs or damages incurred or paid by 
     another person, if such costs or damages are addressed in the 
     settlement, but shall not include protection against claims 
     based on contractual indemnification or other express 
     contractual agreements to pay such costs or damages.''.

     SEC. 407. SCOPE OF RULEMAKING AUTHORITY.

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

     SEC. 408. ENHANCEMENT OF SETTLEMENT AUTHORITIES.

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

     SEC. 409. ALLOCATION PROCEDURES.--

       The act is amended by inserting following section 122--
       ``Sec. 122a. Allocation at Multi-party Facilities.--
       ``(a) Scope.--
       ``(1) Except as provided in paragraph (3) of this section, 
     for each non-federally owned facility listed on the National 
     Priorities List involving two or more potentially responsible 
     parties, the Administrator shall:
       ``(A) initiate the allocation process established under 
     this section for any remedial action selected by the 
     President after the date of enactment of the Superfund Reform 
     Act of 1994, and
       ``(B) initiate the allocation process established in 
     subsections (c)(2) through (d)(3) of this section for any 
     remedial action selected by the President prior to the date 
     of enactment of the Superfund Reform Act of 1994, when 
     requested by any potentially responsible party who has 
     resolved its liability to the United States with respect to 
     the remedial action or is performing the remedial action 
     pursuant to an order issued under section 106(a) of this 
     title, to assist in allocating shares among potentially 
     responsible parties. The allocation performed pursuant to 
     this subsection shall not be construed to require:
       ``(i) payment of an orphan share pursuant to subsection (e) 
     of this section; or
       ``(ii) the conferral of reimbursement rights pursuant 
     to subsection (h) of this section.
       ``(2) Except as provided in paragraph (3) of this section, 
     the Administrator may initiate the allocation process 
     established under this section with respect to any other 
     facility involving two (2) or more potentially responsible 
     parties, as the Administrator deems appropriate.
       ``(3) The allocation process established under this section 
     shall not apply to any facility where--
       ``(i) there has been a final settlement, decree or order 
     that determines all liability or allocated shares of all 
     potentially responsible parties with respect to the facility; 
     or
       ``(ii) where response action is being carried out by a 
     State pursuant to referral or authorization under section 
     104(k) of this title.
       ``(4) Nothing in this section limits or affects--
       ``(A) the Administrator's obligation to perform an 
     allocation for facilities that have been the subject of 
     partial or expedited settlements;
       ``(B) the ability of a potentially responsible party at a 
     facility to resolve its liability to the United States or 
     other parties at any time before initiation or completion of 
     the allocation process; or
       ``(C) the validity, enforceability, finality or merits of 
     any judicial or administrative order, judgment or decree 
     issued, signed, lodged, or entered with respect to liability 
     under this Act, or authorizes modification of any such order, 
     judgment or decree.
       ``(b) Moratorium on Commencement or Continuation of 
     Suits.--
       ``(1) No person may commence an action pursuant to section 
     107 of this Act regarding a response action for which an 
     allocation must be performed under subsection (a)(1)(A) of 
     this section, or for which the Administrator has initiated an 
     allocation under subsection (a)(1)(B) or (a)(2) of this 
     section, until 60 days after issuance of the allocator's 
     report under subsection (d)(1) of this section.
       ``(2) If an action under section 107 of this Act regarding 
     a response for which an allocation is to be performed under 
     this section is pending (A) upon date of enactment of the 
     Superfund Reform Act of 1994, or (B) upon initiation of an 
     allocation under subsection (a)(1)(B) or (a)(2) of this 
     section, the action shall be stayed until 60 days after the 
     issuance of an allocator's report, unless the court 
     determines that a stay will not result in a just and 
     expeditious resolution of the action.
       ``(3) Any applicable limitations period with respect to 
     actions subject to paragraph (1) shall be tolled from the 
     earlier of--
       ``(A) the date of listing of the facility on the National 
     Priorities list; or
       ``(B) the commencement of the allocation process pursuant 
     to this section, until 120 days after the allocation report 
     required by this section has been provided to the parties to 
     the allocation.
       ``(4) Nothing in this section shall in any way limit or 
     affect the President's authority to exercise the powers 
     conferred by sections 103, 104, 105, 106, or 122 of this 
     title, or to commence an action where there is a 
     contemporaneous filing of a judicial consent decree resolving 
     a party's liability; or to file a proof of claim or take 
     other action in a proceeding under title 11 of the U.S. 
     Code.
       ``(5) The procedures established in this section are 
     intended to guide the exercise of settlement authority by the 
     United States, and shall not be construed to diminish or 
     affect the principles of retroactive, strict, joint and 
     several liability under this title.
       ``(c) Commencement of Allocation.--
       ``(1) Responsible party search.--At all facilities subject 
     to this section, the Administrator shall, as soon as 
     practicable but not later than 60 days after the earlier of 
     the commencement of the remedial investigation or the listing 
     of the facility on the National Priorities List, initiate a 
     search for potentially responsible parties, using its 
     authorities under section 104 of this title.
       ``(2) Notice to parties.--As soon as practicable after 
     receipt of sufficient information, but not more than eighteen 
     (18) months after commencement of the remedial investigation, 
     the Administrator shall:
       ``(A) notify those potentially responsible parties who will 
     be assigned shares in the allocation process and notify the 
     public, in accordance with section 117(d) of this title, of 
     the list of potentially responsible parties preliminarily 
     identified by the Administrator to be assigned shares in the 
     allocation process; and
       ``(B) provide the notified potentially responsible parties 
     with a list of neutral parties who are not employees of the 
     United States and who the Administrator determines, in his or 
     her sole discretion, are qualified to perform an allocation 
     at the facility.
       ``(3) Selection of allocator.--The Administrator shall 
     thereafter.
       ``(A) acknowledge the parties' selection of an allocator 
     from the list, or select an allocator from the list provided 
     to the parties if the parties cannot agree on a selection 
     within 30 days of the notice;
       ``(B) contract with the selected allocator for the 
     provision of allocation services; and
       ``(C) make available all responses to information requests, 
     as well as other relevant information concerning the facility 
     and potentially responsible parties, to the parties and to 
     the allocator within 30 days of the appointment of the 
     allocator. The Administrator shall not make available any 
     privileged or confidential information, except as otherwise 
     authorized by law.
       ``(4) Proposed addition of parties.--
       ``(A) For 60 days after information has been made available 
     pursuant to paragraph 3(C), the parties identified by the 
     Administrator and members of the affected community shall 
     have the opportunity to identify and propose additional 
     potentially responsible parties or otherwise provide 
     information relevant to the facility or such potentially 
     responsible parties. This period may be extended by the 
     Administrator for an additional 30 days upon request of a 
     party.
       ``(B) Within 30 days after the end of the period specified 
     in paragraph (A) for identification of additional parties, 
     the Administrator shall issue a final list of parties 
     subject to the allocation process, hereinafter the 
     ``allocation parties''. The Administrator shall include in 
     the list of allocation parties those parties identified 
     pursuant to paragraph (A) in the allocation process unless 
     the Administrator determines and explains in writing that 
     there is not a sufficient basis in law or fact to take 
     enforcement action with respect to those parties under 
     this title, or that they have entered into an expedited 
     settlement under section 122(g). The Administrator's 
     determination is to be based on the information available 
     at the time of the determination and is committed to the 
     Administrator's unreviewable discretion.
       ``(5) Role of federal agencies.--Federal departments, 
     agencies or instrumentalities that are identified as 
     potentially responsible parties shall be subject to, and be 
     entitled to the benefits of, the allocation process provided 
     by this section to the same extent as any other party.
       ``(6) Representation of the united states.--The 
     Administrator and the Attorney General shall be entitled to 
     review all documents and participate in any phase of the 
     allocation proceeding.
       ``(d) Allocation Determination--
       ``(1) Settlement and allocation report.--Following issuance 
     of the list of allocation parties, the allocator may convene 
     the allocation parties for the purpose of facilitating 
     agreement concerning their shares. if the allocation parties 
     do not agree to a negotiated allocation of shares, the 
     allocator shall prepare a written report, with a nonbinding, 
     equitable allocation of percentage shares for the facility, 
     and provide such report to the allocation parties and the 
     Administrator.
       ``(2) Information requests.--To assist in the allocation of 
     shares, the allocator may request information from the 
     allocation parties, and may make additional requests for 
     information at the request of any allocation party. The 
     allocator may request the Administrator to exercise any 
     information-gathering authority under this title where 
     necessary to assist in determining the allocation of shares.
       ``(3) Factors in the allocation.--Unless the allocation 
     parties agree to a negotiated allocation, the allocator shall 
     prepare a nonbinding, equitable allocation of percentage 
     shares for the facility based on the following factors:
       ``(A) the amount hazardous substances contributed by each 
     allocation party;
       ``(B) the degree of toxicity of hazardous substances 
     contributed by each allocation party;
       ``(C) the mobility of hazardous substances contributed by 
     each allocation party;
       ``(D) the degree of involvement of each allocation party in 
     the generation, transportation, treatment, storage, or 
     disposal of the hazardous substance;
       ``(E) the degree of care exercised by each allocation party 
     with respect to the hazardous substance, taking into account 
     the characteristics of the hazardous substance;
       ``(F) the cooperation of each allocation party in 
     contributing to the response action and in providing complete 
     and timely information during the allocation process; and
       ``(G) such other factors that the Administrator determines 
     are appropriate by published regulation or guidance, 
     including guidance with respect to the identification of 
     orphan shares pursuant to paragraph (3) of this subsection.
       ``(4) Identification of orphan shares.--The allocator may 
     determine that a percentage share for the facility is 
     specifically attributable to an ``orphan share''. The orphan 
     share may only consist of the following:
       ``(A) shares attributable to hazardous substances that the 
     allocator determines, on the basis of information presented, 
     to be specifically attributable to identified but insolvent 
     or defunct responsible parties who are not affiliated with 
     any allocation party;
       ``(B) the difference between the aggregate shares that the 
     allocator determines, on the basis of the information 
     presented, are specifically attributable to contributors of 
     municipal solid waste subject to the limitations in section 
     107(a)(5)(D) of this title, and the share actually assumed by 
     those parties in any settlements with the United States 
     pursuant to subsection 122(g) of this title, including the 
     fair market value of in-kind services provided by a 
     municipality; and
       ``(C) the difference between the aggregate share that the 
     allocator determines, on the basis of information presented, 
     is specifically attributable to parties with a limited 
     ability to pay response costs and the share actually assumed 
     by those parties in any settlements with the United States 
     pursuant to subsection 122(g) of this title.

     The orphan share shall not include shares attributable to 
     hazardous substances that the allocator cannot attribute to 
     any identified party. Such shares shall be distributed among 
     the allocation parties.
       ``(e) Funding of Orphan Shares.--
       ``From funds available in the Fund in any given fiscal 
     year, and without further appropriation action, the President 
     shall make reimbursements from the Fund, to eligible parties 
     for costs incurred and equitably attributable to orphan 
     shares determined pursuant to this section, provided that 
     Fund financing of orphan shares shall not exceed $300 million 
     in any fiscal year. Reimbursements made under this subsection 
     shall be subject to such terms and conditions as the 
     President may prescribe.
       ``(f) Timing.--
       ``The allocator shall provide the report required by 
     subsection (d)(1) of this section to the allocation parties 
     and the Administrator within 180 days of the issuance of the 
     list of parties pursuant to subsection (c)(4)(B) of this 
     section. Upon request, for good cause shown, the 
     Administrator may grant the allocator additional time to 
     complete the allocation, not to exceed 90 days.
       ``(g) Settlement Following Allocation.--
       ``(1) Obligations of the United States.--The President will 
     accept a timely offer of settlement from a party based on the 
     share determined by the allocator, if it includes appropriate 
     premia and other terms and conditions of settlement, unless 
     the Administrator, with the concurrence of the Attorney 
     General of the United States, determines that a settlement 
     based on the allocator's determinations would not be fair, 
     reasonable, and in the public interest. The Administrator and 
     the Attorney General shall seek to make any such 
     determination within 60 days from the date of issuance of the 
     allocator's report. The determinations of the Administrator 
     and the Attorney General shall not be judicially reviewable.
       ``(2) If the Administrator and the Attorney General 
     determine not to settle on the basis of the allocation, they 
     shall provide the allocation parties and members of the 
     affected community with a written explanation of the 
     Administrator's determination. If the Administrator and the 
     Attorney General make such a determination, the parties who 
     are willing to settle on the basis of the allocation are 
     entitled to a consultation with an official appointed by the 
     President, to present any objections to the determination, 
     within 60 days after the determination.
       ``(3) Settlements based on allocated shares shall include:
       ``(A) a waiver of contribution rights against all parties 
     who are potentially responsible parties for the response 
     action;
       ``(B) covenants not to sue, consistent with the provisions 
     of section 122(f) of this title, and provisions regarding 
     performance or adequate assurance of performance of response 
     actions addressed in the settlement;
       ``(C) a premium that compensates for the United States' 
     litigation risk with respect to potentially responsible 
     parties who have not resolved their liability to the United 
     States, except that no such premium shall apply if all 
     parties settle or the settlement covers one 100% of response 
     costs;
       ``(D) contribution protection, consistent with sections 
     113(f) and 122(g) of this title, regarding matters addressed 
     in the settlement. Such settlement does not discharge any of 
     the other potentially responsible parties unless its terms so 
     provide, but it reduces the potential liability of the others 
     by the amount of the settlement; and
       ``(E) provisions through which the settling parties shall 
     receive reimbursement from the Fund for any response costs 
     incurred by such parties in excess of the aggregate of their 
     allocated share and any premia required by the settlement. 
     Such right to reimbursement shall not be contingent on the 
     United States' recovery of response costs from any 
     responsible person not a party to any settlement with the 
     United States.
       ``(4) The President shall report annually to Congress on 
     the administration of the allocation scheme, and provide 
     information comparing allocation results with actual 
     settlements at multiparty facilities.
       ``(5) The provisions of this section shall not apply to any 
     offer of settlement made after commencement of litigation by 
     the United States against the offering party under section 
     107 of this title.
       ``(h) Authorization of Reimbursement.--
       ``In any settlement in which a party agrees to perform 
     response work in excess of its share, the Administrator shall 
     have authority in entering the settlement to confer a right 
     of reimbursement on the settling party pursuant to such 
     procedures as the Administrator may prescribe.
       ``(i) Post-Settlement Litigation.--
       ``(1) General.--The United States may commence an action 
     under section 107 against any person who has not resolved its 
     liability to the United States following allocation, on or 
     after 60 days following issuance of the allocator's report. 
     In any such action, the potentially responsible parties shall 
     be liable for all unrecovered response costs, including any 
     federally-funded orphan share identified in accordance with 
     subsection (d)(4). Defendants in any such action may implead 
     any allocation party who did not resolve its liability to the 
     United States. The Administrator and the Attorney General 
     shall issue guidelines to ensure that the relief sought 
     against de minimis parties under principles of joint and 
     several liability will not be grossly disproportionate to 
     their contribution to the facility. The application of such 
     guidelines is committed to the discretion of the 
     Administrator and the Attorney General.
       ``(2) In commencing any action under section 107 following 
     allocation, the Attorney General must certify, in the 
     complaint, that the United States has been unable to reach a 
     settlement that would be in the best interests of the United 
     States.
       ``(3) Admissibility of allocator's report.--The allocator's 
     report shall not be admissible in any court with respect to a 
     claim brought by or against the United States, except in its 
     capacity as a nonsettling potentially responsible party, or 
     for the determination of liability. The allocator's report, 
     subject to the rules and discretion of the court, may be 
     admissible solely for the purpose of assisting the court in 
     making an equitable allocation of response costs among the 
     relative shares of nonsettling liable parties.
       ``(4) Other authorities unaffected.--Nothing in this 
     section limits or in any way affects the exercise of the 
     President's authority pursuant to sections 103, 104, 105, or 
     106.
       ``(5) Costs.--
       ``(A) The costs of implementing the allocation procedure 
     set forth in this section, including reasonable fees and 
     expenses of the allocator, shall be considered necessary 
     costs of response.
       ``(B) The costs attributable to any funding of orphan 
     shares identified by the allocator pursuant to subsection 
     (d)(4) also shall be considered necessary costs of response, 
     and shall be recoverable from liable parties who do not 
     resolve their liability on the basis of the allocation.
       ``(6) Rejection of share determination.--In any action by 
     the United States under this title, if the United States has 
     rejected an offer of settlement that is consistent with 
     subsections (g)(1) and (g)(3) of this section and was 
     presented to the United States prior to the commencement of 
     the action, the offeror shall be entitled to recover from the 
     United States the offeror's reasonable costs of defending the 
     action after the making of the offer, including reasonable 
     attorneys' fees, if the ultimate resolution of liability or 
     allocation of costs with respect to the offeror, taking into 
     account all settlements and reimbursements with respect to 
     the facility other than those attributable to insurance or 
     indemnification, is as or more favorable to the offeror than 
     the offer based on the allocation.
       ``(j) Procedures.--
       ``The Administrator shall further define the procedures of 
     this section by regulation or guidance, after consultation 
     with the Attorney General.''.

            TITLE V--REMEDY SELECTION AND CLEANUP STANDARDS

     SEC. 501. PURPOSES AND OBJECTIVES.

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

     SEC. 502. CLEANUP STANDARDS AND LEVELS.

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

     The President shall publish such findings, together with an 
     explanation and appropriate documentation.''.

     SEC. 503. REMEDY SELECTION.

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

     SEC. 504. MISCELLANEOUS AMENDMENTS TO SECTION 121.

       (a) Section 121(c) of the Act (42 U.S.C. Sec. 9621(c)) is 
     amended by striking out the word ``initiation'', and 
     inserting in lieu thereof the phrase ``completion of all 
     physical on-site construction''.
       (b) Section 121(d) of the Act is further amended by--
       (1) redesignating paragraph (2)(C)(ii) as paragraph 
     ``(6)(A)'';
       (2) redesignating paragraph (2)(C)(iii) as paragraph 
     ``(6)(B)'';
       (3) striking ``clauses (iii) and (iv)'' in redesignated 
     paragraph (6)(A) and inserting ``subparagraph (B)'';
       (4) striking paragraph (2)(C)(iv);
       (5) redesignating paragraph (3) as paragraph ``(7)'' and 
     amending it to read as follows--
       ``(7) In the case of any removal or remedial action 
     involving the transfer of any hazardous substance or 
     pollutant or contaminant off-site, such hazardous substance 
     or pollutant or contaminant shall be transferred to a 
     facility which is authorized under applicable Federal and 
     state law to receive such hazardous substance or pollutant or 
     contaminant and is in compliance with such applicable Federal 
     and state law. Such substance or pollutant or contaminant may 
     be transferred to a land disposal facility permitted under 
     Subtitle C of the Solid Waste Disposal Act only if the 
     President determines that both of the following requirements 
     are met--
       ``(A) The unit to which the hazardous substance or 
     pollutant or contaminant is transferred is not releasing any 
     hazardous waste, or constituent thereof, into the groundwater 
     or surface water or soil.
       ``(B) All such releases from other units at the facility 
     are being controlled by a corrective action program approved 
     by the Administrator under subtitle C of the Solid Waste 
     Disposal Act.

     The President shall notify the owner or operator of such 
     facility of determinations made under this paragraph.''; and
       (6) striking paragraph (4).
       (c) Section 121(e) of the Act (42 U.S.C. 9621(e)) is 
     amended by--
       (1) in paragraph (1) inserting in the first sentence ``or 
     permit application'' before ``shall be required''; and by 
     adding at the end thereof the following: ``Furthermore, no 
     Federal, State or local permit or permit application shall be 
     required for on-site or off-site activities conducted under 
     section 311(b).''; and
       (2) striking paragraph (2).
       (d) Section 121(f) of the Act (42 U.S.C. 9621(f)) is 
     amended by adding after paragraph (3) (as amended by this 
     Act) the following new paragraph--
       ``(4) A State may enforce only those Federal or State 
     legally applicable standards, requirements, criterion, or 
     limitations to which the Administrator has determined the 
     remedial action is required to conform under this Act. Where 
     the parties agree, the consent decree may provide for 
     administrative enforcement. Each consent decree shall also 
     contain stipulated penalties for violations of the decree in 
     the amount not to exceed $25,000 per day. Such stipulated 
     penalties shall not be construed to impair or affect the 
     authority of the court to order compliance with the specific 
     terms of any such decree.''.

     SEC. 505. RESPONSE AUTHORITIES.

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

     SEC. 506. REMOVAL ACTIONS.

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

     SEC. 507. TRANSITION.

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

                        TITLE VI--MISCELLANEOUS

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

       Section 120(e) of the Act (42 U.S.C. 9620(e)) is amended 
     by--
       (a) inserting after paragraph (3) the following new 
     paragraph--
       ``(4) A provision allowing for the participation of other 
     responsible parties in the response action.; and
       (b) insection after paragraph (6) the following new 
     paragraphs--
       ``(7) Exception to Required Action.--No department, agency, 
     and instrumentality of the United States that owns or 
     operates a facility over which the department, agency, or 
     instrumentality exercised no regulatory or other control over 
     activities that directly or indirectly resulted in a release 
     or threat of a release of a hazardous substance shall be 
     subject to the requirements of paragraphs (1) through (6) 
     except (5)(F) and (G) of this subsection if the department, 
     agency, or instrumentality demonstrates to the satisfaction 
     of the Administrator that--
       ``(A) no department, agency, or instrumentality was the 
     primary or sole source or cause of a release or threat of 
     release of a hazardous substance at the facility;
       ``(B) the activities either directly or indirectly 
     resulting in a release or threat of release of a hazardous 
     substance at the facility were pursuant to a statutory 
     authority and occurred prior to 1976; and
       ``(C) the person or persons primarily or solely responsible 
     for such release or threat of release are financially viable, 
     and capable of performing or financing the response action at 
     the facility.

     In the event the above conditions are not met, the applicable 
     terms of section 120(e) apply to the department, agency, or 
     instrumentality of the United States at the facility. Upon 
     determination by the Administrator that a department, agency, 
     or instrumentality qualifies for the exception provided by 
     this paragraph, the head of such department, agency, or 
     instrumentality may exercise enforcement authority pursuant 
     under section 106 (in addition to any other delegated 
     authorities). To the extent a person who has been issued an 
     order under the authority of this paragraph seeks 
     reimbursement under the provisions of section 106, the 
     relevant department, agency, or instrumentality, and not the 
     Fund, shall be the source of any appropriate reimbursement. 
     If the Administrator determines that the relevant department, 
     agency, or instrumentality has failed to seek the performance 
     of response actions by responsible parties within 12 months 
     after the facility has been listed on the National Priorities 
     List, the Administrator may void the exception provided by 
     this paragraph and the applicable provisions or section 
     120(e) would apply to the department, agency or 
     instrumentality at the facility.

     SEC. 602. TRANSFERS OF UNCONTAMINATED PROPERTY.

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

     SEC. 603. AGREEMENTS TO TRANSFER BY DEED.

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

     SEC. 604. ALTERNATIVE OR INNOVATIVE TREATMENT TECHNOLOGIES.

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

     SEC. 605. DEFINITIONS.

       Section 101 of the Act (42 U.S.C. 9601)) is amended by--
       (a) in paragraph (1) striking the ``.'' after ``Act'' and 
     inserting ``and includes the cost of enforcement activities 
     related thereto.'';
       (b) in paragraph (10)(H) striking ``subject to'' and 
     inserting ``in compliance with'';.
       (c) in paragraph (14)) inserting after ``Congress'' the 
     phrase '', unless such waste contains a substance that is 
     listed under any other subparagraph of this paragraph'';
       (d) in paragraph (20) by--
       (1) in subparagraph (A) inserting after ``similar means 
     to'' the phrase ``the United States (or any department, 
     agency, or instrumentality thereof), or'';
       (2) in subparagraph (D) by inserting--
       (A) after ``does not include'' the phrase ``the United 
     States (or any department, agency, or instrumentality 
     thereof), or''; and,
       (B) before ``any State'' the phrase ``any department, 
     agency, or instrumentality of the United States, or''; and
       (3) in subparagraph (D) by striking ``a'' after ``such'' 
     and inserting ``department, agency, or instrumentality of the 
     United States, or'';
       (4) by adding after subparagraph (D) the following new 
     subparagraphs--
       ``(E) The term ``owner or operator'' shall include a trust 
     or estate, but does not include a person who holds title to a 
     vessel or facility solely in the capacity as a fiduciary, 
     provided that such person--
       ``(i) does not participate in the management of a vessel or 
     facility operations that result in a release or threat of 
     release of hazardous substances; and
       ``(ii) complies with such other requirements as the 
     Administrator may set forth by regulation.
       ``(F) The term ``owner or operator'' shall not include the 
     United States or any department, agency or instrumentality of 
     the United States or a conservator or receiver 
     appointed by a department, agency or 
     instrumentality of the United States, which acquired 
     ownership or control of a vessel or facility (or any right or 
     interest therein)--
       (i) in connection with the exercise of receivership or 
     conservatorship authority or the liquidation or winding up of 
     the affairs of any entity subject to a receivership or 
     conservatorship, including any subsidiary thereof; or
       (ii) in connection with the exercise of any seizure or 
     forfeiture authority; or
       (iii) pursuant to an act of Congress specifying the 
     property to be acquired,

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

     SEC. 606. CONFORMING AMENDMENT.

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

                           TITLE VII--FUNDING

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 702. ORPHAN SHARE FUNDING.

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

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

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

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

       Sec. 11(n) of the Act is amended to read as follows--
       ``(1) section 311(B).--For each of the fiscal years 1995, 
     1996, 1997, 1998, and 1999, not more than $20,000,000 of the 
     amounts available in the Fund may be used for the purposes of 
     carrying out the applied research, development, and 
     demonstration program for alternative or innovative 
     technologies and training program authorized under section 
     311(b) of this title (relating to research, development, 
     demonstration) other than basic research. Such amounts shall 
     remain available until expended.
       ``(2) Section 311(a).--From the amounts available in the 
     Fund, not more than the following amounts may be used for the 
     purposes of section 311(a) of this title (relating to 
     hazardous substance research, demonstration, and training 
     activities)--
       (A) for fiscal year 1995 $40,000,000,
       (B) for fiscal year 1996 $50,000,000,
       (C) for fiscal year 1997 $55,000,000,
       (D) for fiscal year 1998 $55,000,000,
       (E) for fiscal year 1998 $55,000,000.
       No more than 10 percent of such amounts shall be used for 
     training under section 311(a) of this title for any fiscal 
     year.
       ``(3) Section 311(d).--For each of the fiscal years 1995, 
     1996, 1997, 1998, and 1999, not more than $5,000,000 of the 
     amounts available in the Fund may be used for the purposes of 
     section 311(d) of this title (relating to university 
     hazardous substance research centers).''.

     SEC. 705. AUTHORIZATION OF APPROPRIATIONS FROM GENERAL 
                   REVENUES.

       Section 111(p)(1) of the Act is amended to read as 
     follows--
       ``(1) In general.--The following sums are authorized to be 
     appropriated, out of any money in the Treasury not otherwise 
     appropriated, to the Hazardous Substance Superfund:
       ``(A) for fiscal year 1995 $250,000,000,
       ``(B) for fiscal year 1996 $250,000,000,
       ``(C) for fiscal year 1997 $250,000,000,
       ``(D) for fiscal year 1998 $250,000,000,
       ``(E) for fiscal year 1999 $250,000,000.

     In addition there is authorized to be appropriated to the 
     Hazardous Substance Superfund for each fiscal year an amount 
     equal to so much of the aggregate amount authorized to be 
     appropriated under this subsection (and paragraph (2) of 
     section 131(b) of this title) as has not been appropriated 
     before the beginning of the fiscal year involved.''

     SEC. 706. ADDITIONAL LIMITATIONS.

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

          TITLE VIII--ENVIRONMENTAL INSURANCE RESOLUTION FUND

     SEC. 801. SHORT TITLE.

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

     SEC. 802. ENVIRONMENTAL INSURANCE RESOLUTION FUND.

       (a) Environmental Insurance Resolution Fund Established.--
       There is hereby established the Environmental Insurance 
     Resolution Fund (hereinafter referred to as the ``Resolution 
     Fund'').
       (b) Offices.--The principal office of the Resolution Fund 
     shall be in the District of Columbia or at such other place 
     as the Resolution Fund may from time to time prescribe.
       (c) Status of Resolution Fund.--Except as expressly 
     provided in this title, the Resolution Fund shall not be 
     considered an agency or establishment of the United States. 
     The members of the Board of Trustees shall not, by reason of 
     such membership, be deemed to be officers or employees of the 
     United States.
       (d) Board of Trustees.--
       (1) In general.--The Resolution Fund shall be administered 
     by a Board of Trustees (Board).
       (2) Membership.--The board shall consist of----
       (A) Governmental members.--
       (i) The Administrator of the Environmental Protection 
     Agency.
       (ii) The Attorney General of the United States.
       (B) Public members.--Five public members appointed by the 
     President not later than 60 days after the date of enactment 
     of this title, not less than two of whom shall represent 
     insurers subject section __ of the Internal Revenue Code of 
     1986, and not less than two of whom shall represent eligible 
     persons defined in subsection (g)(2)(A). The public members 
     shall be citizens of the United States.
       (C) Ex-officio member.--The Secretary of the Treasury shall 
     serve as an ex officio member of the Board.
       (3) Chair.--The Chair of the Board shall be designated by 
     the President from time to time from among the members 
     described in paragraph (2)(A). No expenditure may be made, or 
     other action taken, by the Resolution Fund without the 
     concurrence of the Chair of the Board.
       (4) Compensation.--Governmental members of the Board shall 
     serve without additional compensation. Public members of the 
     Board shall, while attending meetings of the Board or while 
     engaged in duties related to such meetings or other 
     activities of the Board pursuant to this title, be entitled 
     to receive compensation at the rate of $200 per day, 
     including travel time. While away from their homes or regular 
     places of business, members of the Board shall be allowed 
     travel and actual, reasonable and necessary expenses to the 
     same extent as officers of the United States.
       (5) Term of public members.--Public members of the Board 
     shall serve for a term of 5 years, except that such members 
     may be removed by the President for any reason at any time. A 
     public member whose term has expired may continue to serve on 
     the Board until such time as the President appoints a 
     successor. The President may reappoint a public member of the 
     Board, but no such member may consecutively serve more than 
     two terms.
       (6) Vacancies.--A vacancy on the Board shall be filled in 
     the same manner as the original appointment, except that such 
     appointment shall be for the balance of the unexpired term of 
     the vacant position.
       (7) Quorum.--Four members of the Board shall constitute a 
     quorum for the conduct of business.
       (8) Meetings.--The Board shall meet not less than quarterly 
     at the call of the Chair. Meetings of the Board shall be open 
     to the public unless the Board, by a majority vote of members 
     present in open session, determines that it is necessary or 
     appropriate to close a meeting. The Chair shall provide at 
     least 10 days notice of a meeting by publishing a notice in 
     the Federal Register and such notice shall indicate whether 
     it is expected that the Board will consider closing all or a 
     portion of the meeting. Nothing in this paragraph shall be 
     construed to apply to informal discussions or meetings among 
     Board members.
       (e) Officers and Employees.--
       (1) Chief executive officer; chief financial officer.--
       (A) The Resolution Fund shall have a Chief Executive 
     Officer appointed by the Board who shall exercise any 
     authority of the Resolution Fund under such terms and 
     conditions as the Board may prescribe.
       (B) The Resolution Fund shall have a Chief Financial 
     Officer appointed by the Board.
       (2) Compensation.--No officer or employee of the Resolution 
     Fund may be compensated by the Resolution Fund at an annual 
     rate of pay which exceeds the rate of basic pay in effect 
     from time to time for level I of the Executive Schedule under 
     section 5312 of title 5, United States Code. No officer or 
     employee of the Resolution Fund, other than a member of the 
     Board, may receive any salary or other compensation from any 
     source other than the Resolution Fund for services rendered 
     during the period of employment by the Resolution Fund.
       (3) Political test or qualification.--No political test or 
     qualification shall be used in selecting, appointing, 
     promoting, or taking other personnel actions with respect to 
     officers, agents, and employees of the Resolution Fund.
       (4) Assistance by federal agencies.--The Attorney General, 
     the Secretary of the Treasury, and the Administrator of the 
     Environmental Protection Agency, may to the extent 
     practicable and feasible, and in their sole discretion, make 
     personnel and other resources available to the Resolution 
     Fund. Such personnel and resources may be provided on a 
     reimbursable basis, and any personnel so provided shall not 
     be considered employees of the Resolution Fund for purposes 
     of paragraph (2).
       (f) Powers of Resolution Fund.--Notwithstanding any other 
     provision of law, except as provided in this title or as may 
     be hereafter enacted by the Congress expressly in limitation 
     of the provisions of this paragraph, the Resolution Fund 
     shall have power--
       (1) to have succession until dissolved by Act of Congress;
       (2) to make and enforce such bylaws, rules and regulations 
     as may be necessary or appropriate to carry out the purposes 
     of this title;
       (3) to make and perform contracts, agreements, and 
     commitments;
       (4) to settle, adjust, and compromise, and with or without 
     consideration or benefit to the Resolution Fund release or 
     waive in whole or in part, in advance or otherwise, any 
     claim, demand, or right of, by, or against the Resolution 
     Fund;
       (5) to sue and be sued, complain and defend, in any State, 
     Federal or other court;
       (6) to determine its necessary expenditures and the manner 
     in which the same shall be incurred, allowed, and paid, and 
     appoint, employ, and fix and provide for the duties, 
     compensation and benefits of officers, employees, attorneys, 
     and agents, all of whom shall serve at the pleasure of the 
     Board;
       (7) to invest funds, through the Secretary of the Treasury, 
     in interest bearing securities of the United States suitable 
     to the needs of the Resolution Fund; provided, that interest 
     earned on such investments shall be retained by the 
     Resolution Fund and used consistent with the purposes of this 
     title;
       (8) to hire or accept the voluntary services of 
     consultants, experts, advisory boards, and panels to aid the 
     Resolution Fund in carrying out the purposes of this title; 
     and
       (9) to take such other actions as may be necessary to carry 
     out the responsibilities of the Resolution Fund under this 
     title. Nothing in this subsection or any other provision 
     of this title shall be construed to permit the Resolution 
     Fund to issue any evidence of indebtedness or otherwise 
     borrow money.
       (g) Resolution of Disputes Between Insureds and Insurers.
       (1) In general.--The Resolution Fund shall offer a 
     comprehensive resolution described in this subsection with 
     respect to all eligible costs of an eligible person at 
     eligible sites.
       (2) Definitions.--
       (A) Eligible person.--For purposes of this subsection, the 
     term ``eligible person'' means any individual, firm, 
     corporation, association, partnership, consortium, joint 
     venture, commercial entity or governmental unit (including 
     any predecessor in interest or any subsidiary thereof) that 
     satisfies the following criteria:
       (i) Status as potentially responsible party.--An eligible 
     person--
       (I) shall have been named at any time as a potentially 
     responsible party pursuant to the Comprehensive Environmental 
     Response, Compensation and Liability Act with respect to an 
     eligible site on the National Priority List in connection 
     with a hazardous substance that was disposed of on or before 
     December 31, 1985; or
       (II) is or was liable, or alleged to be liable, at any time 
     for removal (as defined in section 101(23) of the 
     Comprehensive Environmental Response, Compensation and 
     Liability Act (42 U.S.C. 9601(23)) at any eligible site in 
     connection with a hazardous substance that was disposed of on 
     or before December 31, 1985.
       (ii) Insurance coverage.--An eligible person shall have 
     demonstrated, to the satisfaction of the Resolution Fund, 
     that such person had entered into a valid contract for 
     comprehensive general liability (including broad form 
     liability, general liability, commercial general liability, 
     and excess or umbrella coverage) or commercial multi-peril 
     (including broad form property, commercial package, special 
     multi-peril, and excess or umbrella coverage) insurance 
     coverage----
       (I) for any seven years in any consecutive 14 year period 
     prior to January 1, 1986; or
       (II) in the case of a person that has been in existence for 
     less than 14 years prior to January 1, 1986, for at least 
     one-half of such years of existence.

     For purposes of this clause, a valid contract for insurance 
     shall not include any contract for insurance with respect to 
     which a person has entered into a settlement with an insurer 
     providing, or where a judgment has provided, that the 
     contract has been satisfied and that such person has no right 
     to make any further claims under such contract.
       (B) Eligible costs.--
       (i) In general.--For purposes of this subsection, the term 
     ``eligible costs'' means costs described in clause (ii) or 
     (iii) incurred with respect to a hazardous substance that was 
     disposed of on or before December 31, 1985--
       (I) for which an eligible person has not been reimbursed; 
     or
       (II) for which an eligible person has been reimbursed and 
     that are the subject of a dispute between the eligible person 
     and an insurer.
       (ii) NPL SITES.--With respect to an eligible site described 
     in subparagraph (C)(i), eligible costs means costs described 
     in clause (i)--
       (I) of response (as defined in section 101(25) of the 
     Comprehensive Environmental Response, Compensation and 
     Liability Act (42 U.S.C. 9601(25));
       (II) for natural resources damages; or
       (III) to defend potential liability

     (including, but not limited to, attorney's fees, costs of 
     suit, consultant and expert fees and costs, and expenses for 
     testing and monitoring)
       (iii) Non-npl sites.--With respect to an eligible site 
     described in subparagraph (C)(ii), eligible costs means costs 
     described in clause (i)--
       (I) of removal (as defined in section 101(23) of the 
     Comprehensive Environmental Response, Compensation and 
     Liability Act (42 U.S.C. 9601(23)); or
       (II) to defend potential liability (including, but not 
     limited to, attorney's fees, costs of suit, consultant and 
     expert fees and costs, and expenses for testing and 
     monitoring).
       (iv) Limit on eligible costs.--
       (I) Except as provided in subclause (II), the eligible 
     costs of an eligible person may not exceed--
       (aa) $15,000,000 in the case of an eligible person that has 
     demonstrated insurance coverage pursuant to subparagraph 
     (A)(ii)(I); or
       (bb) an amount equal to one-seventh of $15,000,000 for each 
     year of insurance coverage, in the case of an eligible person 
     that has demonstrated insurance coverage pursuant to 
     subparagraph (A)(ii)(II).
       (II) The limitation on eligible costs provided in subclause 
     (I) shall not apply to an eligible person that, when filing a 
     request for a resolution offer with the Resolution Fund, 
     presents evidence to the satisfaction of the Resolution Fund 
     that the limits on valid contracts of insurance (including 
     per occurence, aggre- gate, primary, excess or other limits) 
     of such eligible person prior to January 1, 1986, 
     cumulatively exceed the amount determined pursuant to 
     subclause (I) without reference to any time period. For 
     purposes of this clause, a valid contract for insurance 
     shall not include any contract for insurance with respect 
     to which an eligible person has entered into a settlement 
     with an insurer providing, or where a judgment has 
     provided, that the contract has been satisfied and that 
     such eligible person has no right to make any further 
     claims under such contract.
       (C) Eligible site.--For purposes of this subsection, the 
     term ``eligible site'' means--
       (i) any site or facility placed on the National Priority 
     List at any time, at which a hazardous substance was disposed 
     of on or before December 31, 1985; or
       (ii) any site or facility subject to a removal (as defined 
     in section 101(23) of the Act (42 U.S.C. 9601(23)) conducted 
     pursuant to such Act at any time, at which a hazardous 
     substance was disposed of on or before December 31, 1985.

     For purposes of this subparagraph, the term ``facility'' 
     shall have the same meaning as provided in section 101(9) of 
     the Comprehensive Environmental Response, Compensation and 
     Liability Act (42 U.S.C. 9601(9)).
       (D) State.--For purposes of this subsection, the term 
     ``State'' shall have the same meaning as provided in section 
     101(27) of the Comprehensive Environmental Re-sponse, 
     Compensation and Liability Act (42 U.S.C. 9601(27)).
       (3) Resolution offers.--
       (A) In general.--The Resolution Fund shall offer one 
     comprehensive resolution to each eligible person. The offer 
     shall--
       (i) be for a percentage of all of the eligible costs of 
     such eligible person incurred in connection with all eligible 
     sites, determined pursuant to paragraph (4); and
       (ii) state the limitation on eligible costs, if any, 
     applicable to the eligible person pursuant to paragraph 
     (2)(B)(ii).
       (B) Request for resolution offers.--An eligible person 
     shall file a request for resolution from the Resolution Fund 
     in such form and manner as the Resolution Fund shall 
     prescribe. No such request shall be deemed received by the 
     Resolution Fund where before the date final regulations 
     concerning State percentage categories are published in the 
     Federal Register pursuant to paragraph (4)(B)(iii). The 
     Resolution Fund shall make an offer of resolution, determined 
     pursuant to paragraph (4), to each eligible person that has 
     filed a request for an offer of resolution not later than 180 
     days after the receipt of a complete request as determined by 
     the Resolution Fund.
       (C) Review of resolution offers.--No resolution offer made 
     by the Resolution Fund shall be subject to review by any 
     court.
       (4) Determination of resolution offers.--
       (A) In general.--The Resolution Fund shall determine a 
     resolution offer--
       (i) in the case of an eligible person that has established 
     only one State litigation venue pursuant to subparagraph (C), 
     by applying the State percentage determined pursuant to 
     subparagraph (B)(iii) to the established State litigation 
     venue;
       (ii) in the case of an eligible person that has established 
     two or more State litigation venues pursuant to subparagraph 
     (C), each site with respect to which a State litigation venue 
     has been established shall be accorded equal value and the 
     applicable percentage shall be the weighted average of all 
     established State litigation venues; or
       (iii) in the case of an eligible person that has not 
     established any State litigation venue pursuant to 
     subparagraph (C)--
       (I) if the eligible person has potential liability in 
     connection with only one hazardous waste site, by applying 
     the State percentage determined pursuant to subparagraph 
     (B)(iii) to the State in which the site is located; or
       (II) if the eligible person has potential liability in 
     connection with more than one hazardous waste site, each site 
     shall be accorded equal value and the applicable percentage 
     shall be the weighted average of all States in which the 
     sites are located.
       (B) State percentage.--
       (i) In general.--The Congress finds that as of January 1, 
     1994, State law generally is more favorable to eligible 
     persons that pursue claims concerning eligible costs against 
     insurers in some States, that State law generally is more 
     favorable to insurers with respect to such claims in some 
     States, and that in some States the law generally favors 
     neither insurers nor eligible persons with respect to such 
     claims or that there is insufficient information to determine 
     whether such law generally favors insurers or eligible 
     persons with respect to such claims. The Congress further 
     finds that considerations of equity and fairness require that 
     resolution offers made by the Resolution Fund must vary to 
     reflect the relative state of the law among the several 
     States.
       (ii) Proposed regulations.--The Resolution Fund shall 
     examine the law in each State as of January 1, 1994. Not 
     later than 120 days after the date of enactment of this 
     title, the Resolution Fund shall publish in the Federal 
     Register a notice of proposed rulemaking soliciting public 
     comment for 60 days and classifying States into the following 
     percentage categories:
       (I) 20 percent, in the case of the ten States in which the 
     Resolution Fund determines that State law generally is 
     most favorable to insurers relative to the other States;
       (II) 60 percent, in the case of the ten States in which the 
     Resolution Fund determines that State law generally is most 
     favorable to eligible persons relative to the other States; 
     and
       (III) 40 percent, in the case of all other States.
       (iii) Final regulations.--
       (I) Not later than 60 days after the close of the public 
     comment period, the Resolution Fund shall publish in the 
     Federal Register final regulations providing State 
     classifications.
       (II) The State classifications provided in the final rule 
     shall govern all resolution offers made by the Resolution 
     Fund and shall not be subject to amendment by the Resolution 
     Fund.
       (III) Notwithstanding any other provision of law, the final 
     regulations promulgated by the Resolution Fund pursuant to 
     this clause shall not be subject to review by any court.
       (C) Litigation venue.--For purposes of this subsection, 
     litigation venue is considered established with respect to an 
     eligible person if--
       (i) on or before December 31, 1993, the eligible person had 
     pending in a court of competent jurisdiction a complaint or 
     cross complaint against an insurer with respect to eligible 
     costs at an eligible site; and
       (ii) no motion to change venue with respect to such 
     complaint was pending on or before January 31, 1994.
       (5) Acceptance or rejection of resolution offer.--
       (A) In general.--
       (i) An eligible person may, when submitting a request for a 
     resolution to the Resolution Fund, make a written irrevocable 
     election to accept any resolution to be made by the 
     Resolution Fund.
       (ii) An eligible person that does not make an election 
     pursuant to clause (i) shall, within 60 days of the receipt 
     of a resolution offer from the Resolution Fund, notify the 
     Resolution Fund in writing of its irrevocable acceptance or 
     rejection of such offer. An eligible person who does not so 
     accept or reject a resolution offer within 60 days shall be 
     deemed to have made an irrevocable election to reject the 
     offer and the provisions of subparagraph (C) shall apply.
       (B) Resolution offer accepted.--An eligible person that 
     accepts a resolution offered by the Resolution Fund shall be 
     subject to the provisions of this paragraph.
       (i) Waiver of insurance claims.--The Resolution Fund shall 
     not make payments to an eligible person unless the eligible 
     person agrees in writing, subject to reinstatement described 
     in clause (ii)--
       (I) to waive any existing and future claims against any 
     insurer for eligible costs; and
       (II) to stay or dismiss each claim pending against an 
     insurer for eligible costs.
       (ii) Reinstatement of insurance claims.--
       (I) If the Resolution Fund fails to timely fulfill its 
     obligations to an eligible person under the terms of an 
     accepted resolution offer, such eligible person shall be 
     entitled to reinstate any claim under a contract for 
     insurance with respect to eligible costs.
       (II) Statute of limitation tolled.--Notwithstanding any 
     other provision of Federal or State law, any Federal or State 
     statute of limitation concerning the filing or prosecution of 
     an action by an eligible person against an insurer, or by an 
     insurer against an eligible person, with respect to eligible 
     costs shall be tolled during the pendency of the stay of 
     pending litigation established by section 804(a).
       (iii) Payment of resolution offers.--
       (I) Pre-resolution costs.--The Resolution Fund shall make 
     equal annual payments over a period of eight years for 
     eligible costs incurred by an eligible person on or before 
     the date such person accepts a resolution offer pursuant to 
     subparagraph (A)(i) or (ii), and interest shall not accrue 
     with respect to such eligible costs. The Resolution Fund may, 
     in its sole discretion, make such payments over a shorter 
     period if the aggregate eligible costs do not exceed $50,000. 
     An eligible person shall submit to the Resolution Fund 
     documentation of such costs as the Resolution Fund may 
     require. The initial payment to an eligible person under this 
     subclause shall be made not later than 60 days after the 
     receipt of documentation satisfactory to the Resolution Fund.
       (II) Post-resolution costs.--The Resolution Fund shall make 
     payments for eligible costs incurred by an eligible person 
     after the date such person accepts a resolution offer 
     pursuant to subparagraph (A)(i) or (ii) to the eligible 
     person, or to a contractor or other person designated by the 
     eligible person, subject to such documentation as the 
     Resolution Fund may require. Payments under this subclause 
     shall be made not later than 60 days after the receipt of 
     documentation satisfactory to the Resolution Fund.
       (III) Adjustment for deductible or self insurance.--In the 
     case of an eligible person that has submitted to the 
     Resolution Fund, as proof of status as an eligible person, a 
     contract for insurance described in paragraph (2)(A)(ii) that 
     is subject to a self-insured retention or a deductible, 
     payment to such eligible person pursuant to a resolution 
     shall be reduced by the amount of such self-insured 
     retention or deductible, except that such reduction shall 
     not exceed the amount of one self-insured retention or one 
     deductible that the eligible person would have been 
     required to pay with respect to one claim for eligible 
     costs under the terms of the contracts for insurance 
     submitted. In the event that the eligible person submitted 
     more than one contract for insurance, any such reduction 
     shall be made with respect to the lowest of the amounts of 
     self-insured retentions and deductibles.
       (IV) Adjustment for certain duty-to-defend costs.--If an 
     insurer has incurred and paid costs pursuant to a duty-to-
     defend clause contained in a contract for insurance described 
     in paragraph (2)(B), and such costs are the subject of a 
     dispute between the eligible person and an insurer, the 
     payment of a resolution to an eligible person shall be 
     reduced by such amount, and the Resolution Fund shall pay 
     such amount to the insurer. If such cost were paid by the 
     insurer on or before the date the eligible person accepted a 
     resolution offer made by the Resolution Fund, payment to an 
     insurer under this subclause shall be made in equal annual 
     installments over a period of eight years, and interest shall 
     not accrue with respect to such costs. The Resolution Fund 
     may, in its sole discretion, make such payments over a 
     shorter period if the aggregate costs do not exceed $50,000.
       (C) Resolution offer rejected; litigation of insurance 
     claims.--
       (i) Admissibility of resolution offer.--No resolution 
     offered by the Resolution Fund shall be admissible in any 
     legal action by an eligible person against an insurer or by 
     an insurer against an eligible person.
       (ii) Insurer action against eligible person.--Any eligible 
     person that rejects a resolution offer, litigates a claim 
     with respect to eligible costs against an insurer, and 
     obtains a final judgment that is less favorable than the 
     resolution offered by the Resolution Fund, shall be liable to 
     such insurer for 20 percent of the reasonable costs and legal 
     fees incurred by the insurer in connection with such 
     litigation after the resolution was offered to the eligible 
     person. The district courts of the United States shall have 
     original jurisdiction of all such actions, without regard to 
     amount or value. The court shall reduce any award to an 
     insurer in any such action by the amount, if any, of such 
     costs and legal fees recovered by the insurer pursuant to 
     State law or court rule. Nothing in this clause shall be 
     construed to limit or affect in any way the application of 
     State law, or the rule of any court, to such costs or legal 
     fees.
       (iii) Reimbursement to insurer.--In the case of an eligible 
     person that rejects a resolution offer, litigates a claim 
     with respect to eligible costs against one or more insurers, 
     and obtains a final judgment against any such insurer, the 
     Resolution Fund--
       (I) shall reimburse to such insurer or insurers the lesser 
     of the amount of the resolution offer made to the eligible 
     person or the final judgment; and
       (II) may, if the resolution offer exceeded the final 
     judgment, reimburse the insurer or insurers for unrecovered 
     reasonable costs and legal fees, except that the total 
     reimbursement under this subclause may not exceed the amount 
     of the resolution offer to the eligible person.

     Reimbursements pursuant to this clause shall be subject to 
     such documentation as the Resolution Fund may require and 
     shall made by the Resolution Fund not later than 60 days 
     after receipt by the Resolution Fund of a complete request 
     for reimbursement as determined by the Resolution Fund.
       (6) Payments considered pursuant to insurance contract.--
     Payments made by the Resolution Fund pursuant to a resolution 
     offer shall be deemed payments made by an insurer under the 
     terms and conditions of a contract of insurance or in 
     settlement thereof. Nothing in this paragraph shall be 
     construed to affect in any way the issue of whether the 
     liability limits of a contract of insurance has been 
     satisfied.
       (7) Resolution process not admission of liability.--No 
     provision of this title, and no action by an eligible person 
     undertaken in connection with any provision of this title 
     shall in any way constitute an admission of liability in 
     connection with the disposal of hazardous substance.
       (8) Regulations.--
       (A) Procedures and documentation.--Not later than 120 days 
     after the date of enactment of this title, the Resolution 
     Fund shall publish in the Federal Register for public comment 
     of not more than 60 days interim final regulations concerning 
     procedures and documentation for the submission of requests 
     for resolution offers and the payment of accepted resolution 
     offers. Not later than 60 days after the close of the public 
     comment period, the Resolution Fund shall publish in the 
     Federal Register final regulations concerning such procedures 
     and documentation, which may be amended by the Resolution 
     Fund from time to time.
       (B) Other regulations.--The Resolution Fund may prescribe 
     such other regulations, rules and procedures as the 
     Resolution Fund deems appropriate from time to time.
       (C) Judicial review.--No regulation, rule or procedure 
     prescribed by the Resolution Fund pursuant to this paragraph 
     shall be subject to review by any court except to the extent 
     such regulation, rule or procedure is not consistent with a 
     provision of this title.
       (h) Jurisdiction of Federal Courts.--Notwithstanding 
     section 1349 of title 28, United States Code:
       (1) The Resolution Fund shall be deemed to be an agency of 
     the United States for purposes of sections 1345 and 1442 of 
     title 28, United States Code.
       (2) All civil actions to which the Resolution Fund is a 
     party shall be deemed to arise under the laws of the United 
     States, and the district courts of the United States shall 
     have original jurisdiction of all such actions, without 
     regard to amount or value.
       (3) Any civil or other action, case or controversy in a 
     court of a State, or in any court other than a district court 
     of the United States, to which the Resolution Fund is a party 
     may at any time before the trial thereof be removed by the 
     Resolution Fund, without the giving of any bond or security, 
     to the district court of the United States for the district 
     and division embracing the place where the same is pending, 
     or, if there is no such district court, to the district court 
     of the United States for the district in which the principal 
     office of the Resolution Fund is located, by following any 
     procedure for removal of causes in effect at the time of such 
     removal.
       (4) No attachment or execution shall be issued against the 
     Resolution Fund or any of its property before final judgment 
     in any State, Federal, or other court.
       (i) Reports.--
       (1) Annual reports.--The Resolution Fund shall report 
     annually to the President and the Congress not later than 
     January 15 of each year on its activities for the prior 
     fiscal year. The report shall include--
       (A) A financial statement audited by an independent 
     auditor; and
       (B) a determination of whether the fees and assessments 
     imposed by section    of the Internal Revenue Code of 1986 
     will be sufficient to meet the anticipated obligations of the 
     Resolution Fund.
       (2) Special Reports.--The Resolution Fund shall promptly 
     report to the President and the Congress at any time the 
     Resolution Fund determines that the fees and assessments 
     imposed by section   of the Internal Revenue Code of 1986 
     will be insufficient to meet the anticipated obligations of 
     the Resolution Fund.
       (j) False or Fraudulent Statements or Claims.--
       (1) Criminal penalties.--
       (A) For purposes of section 287 of title 18, United States 
     Code (relating to false claims), the Resolution Fund shall be 
     considered an agency of the United States and any officer or 
     employee of the Resolution Fund shall be considered a person 
     in the civil service of the United States.
       (B) For purposes of section 1001 of title 18, United States 
     Code (relating to false statements or entries), the 
     Resolution Fund shall be considered an agency of the United 
     States.
       (2) Civil penalties.--Officers and employees of the 
     Resolution Fund shall be considered officers and employees of 
     the United States for purposes of section 3729 of title 31, 
     United States Code (relating to false claims).

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

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

     SEC. 804. STAY OF PENDING LITIGATION.

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

     SEC. 805. SUNSET PROVISIONS.

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

     SEC. 806. SOVEREIGN IMMUNITY OF THE UNITED STATES.

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

     SEC. 807. EFFECTIVE DATE.

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

                            TITLE IX--TAXES

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

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

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

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

     SEC.   . ENVIRONMENTAL FEES AND ASSESSMENTS ON INSURANCE 
                   COMPANIES.

       [Reserved]
       (b) Clerical Amendment.--The table of sections for chapter   
      of the Internal Revenue Code of 1986 is amended by inserting 
     after the item relating to section    the following:
``Sec.   . Environmental Fees and Assessments on Insurance 
              Companies.''.

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

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

     SEC. 904. RESOLUTION FUND NOT SUBJECT TO TAX.

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


                           SUMMARY OF S. 1834

      Title I.--Community Participation and Human Health Concerns


                        A. COMMUNITY INVOLVEMENT

                                1. Issue

       Many communities near Superfund sites, including low 
     income, minority and Indian communities, feel that they are 
     not provided with the opportunity to fully participate in the 
     Superfund process. These and other communities believe that 
     the program does not address local concerns adequately when 
     addressing risk or determining the method and level of 
     cleanup, particularly with respect to future use of land. The 
     public is often skeptical of the government's willingness to 
     give serious consideration to community concern. Affected 
     stakeholders sometimes voice concern that opportunities for 
     their involvement in site activities come too late in the 
     process and that their input has little impact on cleanup 
     decisions. There is a general consensus that opportunities 
     for earlier, direct and regular community involvement would 
     enhance the communities' participation throughout the cleanup 
     process.

                  2. General Overview of the Proposal

       The Administration's proposal is based on the principle 
     that communities must be involved in the cleanup process from 
     the time a site is discovered to the time it is finally 
     remediated. The Administration's proposal sets out several 
     innovative methods for getting communities involved in the 
     cleanup process. Community work Groups (CWG) would be formed 
     to promote early, direct and meaningful public participation 
     throughout the Superfund process. In addition, communities' 
     access to information would be facilitated through the 
     establishment of Citizen Information and Access Offices 
     (CIAOs) in each state and tribal land affected by a Superfund 
     site.
       Soliciting and evaluating community views would occur as 
     early as during the site assessment stage of the Superfund 
     process. The communities' views and preferences on remedies 
     would also be solicited earlier (i.e., prior to the 
     feasibility study), providing an upfront opportunity to 
     participate in and influence the remedy selection process. 
     Their views could then be considered in the development of 
     remedial alternatives for the site. Considering the public's 
     recommendations once a preferred remedial action is proposed 
     would continue to occur.
       a. Community Work Groups.--The CWG would serve as a site 
     information clearinghouse for the affected community, assist 
     in establishing land use expectations more reliably, and 
     obtain greater community support for remedial decisions 
     affecting future land use. as a result, the community's 
     preference with respect to land use would be considered in 
     the development of remedial alternatives for the site.
       The proposed bill establishes a hierarchy for considering 
     future land use recommendations. When the CWG reaches 
     consensus on future land use, their recommendations would be 
     given substantial weight in remedy selection. If there is 
     substantive disagreement within the CWG, then the government 
     would attempt to reconcile the differences. If disagreement 
     continues, then substantial weight would be given to the 
     views of residents of the affected community.
       The remedy selection process has also been modified to 
     account for the community's acceptance of a remedial 
     alternative, during the evaluation of alternatives, including 
     the alternative's ability to achieve the community's 
     preferred future land use. Accordingly, the opportunity for 
     community input is more meaningful in that it occurs prior to 
     the proposal of a preferred remedial action plan by the 
     government. In addition, by requiring the government to 
     prepare a written explanation when it makes decisions that 
     are inconsistent with the CWG's recommendations on a 
     significant issue, the government's accountability to the 
     affected community with respect to its decision-making is 
     increased.
       The proposed bill contains guidelines for establishing 
     CWG's (See, Section 103). The CWG membership should generally 
     not exceed twenty people who serve on the board without pay. 
     The Administrator would solicit nominations and make the 
     ultimate selection of CWG members. Notice and opportunity to 
     participate would be given to people who potentially are 
     affected by site contamination in the community. Special 
     efforts would also be made to ensure that the composition of 
     the CWG reflects the racial, ethnic and economic makeup of 
     the community. The government would attend and participant in 
     CWG meetings as appropriate, but would not serve on the 
     board. This would allow the CWG to function independently of 
     the government, while providing access to government 
     officials when needed.
       b. Citizens Information and Access Offices.--The CIAO would 
     provide citizens and elected officials with information on 
     NPL and ensure wide distribution of information that is 
     easily understood by citizens. The CIAO would also assist in 
     notifying, nominating and selecting potential CWG members. 
     CIAO program funding could not exceed $50 million per year. 
     Funds would be distributed based on a formula using such 
     factors as the number and complexity of sites.
       These proposed changes to the current Superfund law would 
     enhance and increase community input into the decision-making 
     process by providing opportunities for earlier, direct and 
     regular community involvement. Establishing CWGs and CIAOs 
     plays a critical role in accomplishing this objective. 
     Changes in the remedy selection process have also been made 
     which increase the significance of community acceptance in 
     determining an appropriate remedy for a site.
       c. Technical Assistance Grants.--The proposal amends the 
     current law to expand the concept of technical assistance 
     grants to include the granting of services in addition to 
     funds.


                   b. environmental justice proposal

                                1. Issue

       Environmental Justice focuses on the needs of disadvantaged 
     communities. These communities face not only risks from 
     uncontrolled toxic waste sites, but also from multiple 
     sources of pollution (e.g., air emissions from nearby 
     manufacturing plants). EPA, however, has not traditionally 
     taken into account multiple environmental stresses from 
     sources other than the site when setting priorities and 
     evaluating risk under the Superfund program.

                  2. General Overview of the Proposal

       The Administration's proposed amendments to CERCLA seek to 
     respond to evidence that disadvantaged communities, whether 
     urban, rural or tribal, bear a disproportionate share of 
     environmental risk. Priority setting would be changed to 
     account for the presence of disproportionate risk. In 
     addition, demonstration projects would be used to advance 
     methodologies for assessing cumulative risk.
       a. Multiple Sources of Risk in Priority Setting.--Under 
     this proposal, the hazard ranking system (HRS), the model 
     used to determine sites eligible for the National Priorities 
     List (NPL), would be amended to explicitly take into account 
     the presence of multiple sources of risk and cumulative risk 
     to minority and low income populations in priority setting. 
     Sites that are placed on the NPL qualify for additional 
     funding to address long-term risks. The current HRS does not 
     take into account cumulative risk from sources other than the 
     site under consideration. In addition, the current HRS is 
     biased against including urban sites on the NPL, since most 
     urban areas obtain drinking water from public water supplies. 
     These changes in the HRS would tip the balance in favor of 
     placing such sites on the NPL, rather than rejecting them.
       The National Oil and Hazardous Substances Contingency Plan 
     would also be amended to develop methodologies for assessing 
     the cumulative risk from multiple sources. Advances must be 
     made in the science of risk assessment to improve such 
     methodologies. Therefore, demonstration projects are also 
     proposed to support the development of these methodologies.
       b. Demonstration Projects.--The proposed demonstration 
     projects are part of a five year program of study relating to 
     multiple sources of risk and cumulative risk. The program is 
     concerned with identifying and assessing multiple sources of 
     risk. Locations for demonstration projects would coincide 
     with areas designated as empowerment zones, to the extent 
     practicable. This program would be coordinated with Housing 
     and Urban Development and other appropriate departments or 
     agencies.
       The Administration also proposes to authorize EPA to 
     conduct a five year study and demonstration project relating 
     to the provision of additional health related benefits (e.g., 
     health screening, medical care) at a selected number of sites 
     in an effort to increase community acceptance and 
     satisfaction with actions taken at these sites.
       By taking into account cumulative risk from multiple 
     sources in priority setting and making strides in the area of 
     identifying and assessing such risk, the Administration 
     places increased emphasis on responding to environmental 
     issues of disadvantaged communities that bear a 
     disproportionate share of environmental risk.

                         Title II.--State Role


                      a. state involvement issues

                                1. Issue

       The federal government has primary responsibility for 
     implementing the Superfund program, and it has exclusive 
     access to money in the Superfund. States, however, play a 
     significant role in the program's implementation. CERCLA 
     currently provides for State involvement in virtually every 
     aspect of the program. For example, State standards apply to 
     all cleanups, and States must pay a share of cleanup cost and 
     provide assurances to conduct operation and maintenance 
     activities at federally-funded, non-federal facility sites. 
     State involvement in Superfund cleanups, however, has been 
     the subject of much controversy. Due to overlapping authority 
     and responsibility, federal and State governments often 
     disagree over the degree to which sites should be cleaned up 
     and the remedy to be used. These disagreements contribute to 
     the cost and duration of cleanups, and they result in 
     substantial confusion among stakeholders. Although EPA, 
     States and Potentially Responsible Parties (PRPs), have 
     differing opinions of the problem, they would generally agree 
     that having dual sovereigns exercise some control at each 
     Superfund site creates uncertainly and duplication of effort 
     and increases both government and PRP transaction costs. In 
     addition, all three would support changes to CERCLA that 
     would leverage Federal, State and private resources to 
     address the maximum number of contaminated sites possible.

                  2. General Overview of the Proposal

       The Administration's proposal would enhance the state role 
     in Superfund and limit the duplication between the federal 
     and state governments at specific sites by establishing a 
     principle that only one government entity would have 
     responsibility for each site. States would be offered the 
     opportunity to assume responsibility and authority for the 
     cleanup of specific sites. States could elect to take on 
     clean up responsibilities at all sites or categories of 
     sites, depending on their interest and the capabilities of 
     their program. EPA would work with the States to help them 
     develop the capacity to take on more responsibility. 
     States that did take on clean up responsibilities would be 
     given access to federal funds under certain conditions. To 
     support this larger role, a State would be required to 
     have in place a clean up program substantially consistent 
     with the federal program.
       a. Authorization and Referral.--This proposal provides for 
     increased State involvement in response actions for NPL Sites 
     and federal facility sites through either site-specific 
     referrals or State program authorization. Under either 
     scheme, States will take lead response roles, select 
     remedies, and have access to the Fund to finance a portion of 
     necessary response costs. This proposal would provide for 
     meaningful public participation at various stages of the 
     referral and State program authorization processes, in order 
     to ensure public accountability for State expenditure of 
     Federal response action dollars at referred sites and in 
     authorized programs. Finally, more positive State-EPA and 
     State-PRP relationships may result with the recognition that 
     many States have adequate authorities and capabilities to 
     proceed in a lead role at NPL sites with minimum EPA 
     oversight.
       EPA will provide funding for referred sites and authorized 
     programs through a grant with the State. The grants would 
     include non-site-specific program support and response action 
     funds. The State would be required to provide cost share when 
     receiving federal funds through such grant. Currently, States 
     are responsible for ten percent (10 percent) matching funds 
     for federally-funded remedial actions only and are fully 
     responsible for operation and maintenance requirements at 
     such sites. EPA would consider cost recovery and the 
     effectiveness of a State's enforcement program in allocating 
     additional funds to the State. EPA would conduct bi-annual 
     performance reviews of State programs and response actions at 
     referred and authorized programs to determine whether 
     continued funding is appropriate. EPA would also retain 
     discretion to withdraw authorization or referral for all or 
     part of a State program.
       State program authorization would provide States with 
     programs that are substantially consistent with the Federal 
     program with the opportunity to take the lead role at all NPL 
     sites within the State. Authorized States need not take the 
     lead at all NPL sites, but may address a category or 
     categories of sites (as defined by EPA). However, authorized 
     States choosing to address particular categories of sites 
     will be responsible for all phases of response at all NPL 
     sites within the category or categories of sites.
       To obtain authorization or site-specific referral, States 
     must have a program with the statutory and administrative 
     authority, as well as technical capability and resources, to 
     conduct the full range of response activities (including 
     enforcement) in a manner substantially consistent with the 
     Federal program under CERCLA and the NCP. For example, the 
     State must demonstrate that it has a process for allocating 
     liability among responsible parties, provides for public 
     participation and provides for CERCLA quality cleanups.
       At all authorized and referred sites, States will select 
     remedies and have access to Superfund monies for response 
     activities. Fund-financed remedial actions will be limited 
     to Federal funding amounts necessary to achieve CERCLA 
     cleanup requirements, and will be subject to a state cost 
     share. The State may enhance a remedy beyond CERCLA 
     requirements, but will be required to pay for all of the 
     excess costs necessary to achieve those standards.
       EPA would have the opportunity to review any proposed plan 
     for a remedial action before the State selects the remedy. 
     The State also would give EPA a copy of the final selected 
     remedy. Within ninety (90) days, EPA may request a 
     modification to the remedy. If EPA's concerns were not 
     adequately addressed by the State, EPA could withhold funding 
     or withdraw all or part of the State's authorization, or 
     both.
       As mentioned above, to ensure public accountability for 
     State expenditures of Federal dollars, EPA would review State 
     programs on a bi-annual basis. The review would be used to 
     determine if: 1) response actions were conducted in a manner 
     consistent with the Federal program; 2) Federal funds were 
     utilized in the manner agreed to during the funding process; 
     and 3) the State's cost recovery and other enforcement 
     efforts were adequate.

                     Title III.--Voluntary Response


                       a. state voluntary program

                                1. Issue

       The universe of sites requiring cleanup is much larger than 
     either EPA or State environmental agencies can address alone. 
     With limited resources, EPA and the States have focused their 
     efforts on maximizing risk reduction at those sites posing 
     the greatest threat to human health and the environment. 
     Although many non-NPL/medium risk sites are being addressed 
     by other federal agencies and several State programs, there 
     still exists a substantial backlog of low- and medium-risk 
     sites that are not currently being addressed by any 
     governmental agency. The resultant delays in addressing such 
     sites can prolong exposure to environmental risks and 
     restrict economic redevelopment in those areas.

                              2. Proposal

       The Administration's proposal maintains a ``worst sites 
     first'' approach to achieve maximum risk reduction, while 
     assisting State and private parties to clean up sites that 
     may not pose as great a risk, but which have significant 
     economic redevelopment potential. By working with the States 
     to help them enhance existing voluntary cleanup programs and 
     develop new ones, EPA can also leverage its resources to 
     increase the speed and number of cleanups at contaminated 
     sites. Given the fact that most voluntary cleanups are driven 
     by local economic redevelopment concerns, EPA believes that 
     States are in the best position to oversee such efforts.


                   b. economic redevelopment proposal

                                1. Issue

       At contaminated sites, uncertainty about future tort, third 
     party, and CERCLA liability, as well as uncertainty about 
     cost, cleanup standards, and the length of time needed for 
     cleanup often create barriers to the redevelopment of these 
     sites--regardless whether the site is of federal or state 
     concern. This situation deters investment in such sites. As a 
     result, at times, affected communities may suffer such 
     adverse economic effects as declining property values and 
     increasing unemployment rates. Furthermore, since the poor 
     and many minority groups tend to be concentrated in older 
     urban centers or rural areas where polluted real estate is 
     usually found, they may bear disproportionately greater 
     health and environmental risks.

                  2. General Overview of the Proposal

       The Administration's proposal is designed to reduce the 
     current Superfund-related obstacles to the redevelopment of 
     contaminated sites. It changes provisions of the current law 
     that discourage prospective purchasers from investing in 
     contaminated property and banks from lending money for such 
     purposes. The Administration's proposal contains a 
     conditional exemption from liability for bona fide 
     prospective purchasers of contaminated property. Since CERCLA 
     liability is often noted as a key factor in freezing the 
     market for industrial and commercial properties, this 
     exemption would provide certainty for these parties, thereby 
     providing an incentive to bring contaminated property back 
     into productive use.
       Prospective purchasers' liability would be limited if a 
     person: acquired the property subsequent to disposal of 
     hazardous substances; conducted a site audit and in the case 
     of property for residential or noncommercial use, a site 
     inspection and title search revealed no basis for further 
     investigation; provided proper notification of releases of 
     hazardous substances; exercised due care and took reasonably 
     necessary steps to address the release or threatened release 
     of hazardous substances and to protect human health and the 
     environment; and provides cooperation, assistance and site 
     access to those responsible for response actions. To prevent 
     against sham transactions, a bona fide prospective purchaser 
     cannot be affiliated with any other person liable for 
     response costs.
       To protect against unjust enrichment the government could 
     place a lien on the property. The lien would be based on the 
     fair market value that response action increases the value of 
     the property, (e.g., the net difference between the value of 
     the property prior to and following the response action). The 
     lien would continue until it is satisfied or all response 
     costs are recovered, whichever is sooner.

                    Title IV.--The Liability Scheme


   a. proposals to increase fairness and reduce transaction costs in 
                   implementing the liability scheme

                               1. Issues

       The Superfund statute makes those who caused or were 
     associated with contamination liable to finance or conduct 
     cleanup. Liability is strict, joint and several, and 
     retroactive. EPA has used the statute to obtain a large 
     proportion of current cleanups. The liability scheme has 
     resulted in 72% of new Remedial Actions being undertaken by 
     responsible parties in the 1992 fiscal year, up from a 37% 
     liable party share in FY 87. EPA has obtained over $8 billion 
     in responsible party commitments to do response work since 
     1980. Many claim that the Superfund liability scheme has 
     positively modified behavior respecting waste disposal.
       Notwithstanding CERCLA's role in, effecting privately 
     funded cleanups on a large scale, many criticize the statute. 
     Criticisms fall roughly into three groups. First, liable 
     parties commonly complain that the strict, joint and several, 
     retroactive liability scheme is unfair, principally on 
     grounds that it imposes costs on a liable party which may 
     exceed its proportional ``share'' of the costs of clean up, 
     and that it imposes liability for acts which may have been 
     legal when taken. The impact on small waste contributors 
     generally may be most acute, because often they are least 
     able to bear the costs of cleanup.
       Second, parties often complain that implementation of the 
     statute imposes heavy transaction costs on them. These costs 
     primarily arise from disputes between and among liable 
     parties over their allocation of cost shares, often by way of 
     contribution litigation, and secondarily from coverage 
     disputes between liable parties and their insurers.
       Finally, many complain about the broad scope of the 
     liability scheme, and about its unintended effects. For 
     example, one of the unintended effects of the Superfund 
     liability scheme is that many truly small waste contributors, 
     who are technically liable but rarely the subject of EPA 
     enforcement, are drawn into litigation through contribution 
     suits brought by large liable parties. Municipalities which 
     are generators and transporters of Municipal Solid Waste 
     (``MSW'') also claim that they are unintended victims of the 
     liability scheme. Finally, prior to promulgation of EPA's 
     lender rule, lenders claimed their normal lending practices 
     could be chilled in some cases because of potential Superfund 
     liability exposure, and trustees complain about potential 
     liability exposure in their activities.

                      2. Overview of the Proposal

       In addition to the government's proposed allocation scheme 
     set forth in IV.B. below, the proposal makes adjustments to 
     the Superfund liability scheme to increase the scheme's 
     overall fairness and efficiency and to reduce transaction 
     costs for all, especially those least able to bear them.
       To increase the liability scheme's overall fairness and 
     efficiency, and to reduce transaction costs, the 
     Administration recommends making substantial improvements in 
     the manner in which the current liability scheme is 
     implemented while retaining the core elements of the scheme. 
     Such improvements include exemptions for ``de micromis'' 
     parties, expedited settlements for de minimis parties, limits 
     on the liability of MSW generators and transporters, 
     protection for lenders and trustees, a mandatory cost 
     allocation process (including assignment to the government of 
     a major portion of the ``orphan share''), and decisively 
     greater opportunities for finality in settlement. Specific 
     proposals for these improvements follow in succeeding 
     sections.

                         3. Specific Proposals

            a. Truly Tiny Parties (``De Micromis'' Parties)

                                i. Issue

       EPA as a matter of practice generally does not pursue truly 
     small volume waste contributors, principally on grounds of 
     equity, and also because it is not an efficient use of the 
     government's enforcement resources. However, liable parties 
     sometime do. To date, this problem has arisen largely in 
     municipal/industrial ``co-disposal'' landfill cases where 
     generators of chemical or industrial wastes have brought 
     contribution actions against large numbers of small parties 
     who contributed only trash or other MSW. These contribution 
     actions are premised on generic studies which show that MSW 
     contains small quantities of hazardous substances. In such 
     cases, the resulting litigation and other transaction costs 
     can overwhelm the truly small volume parties, and are likely 
     to far exceed the allocable share of each such party, even if 
     liability can be established. The Administration therefore 
     believes that truly small volume waste contributors should 
     receive protection against such actions both as a matter of 
     equity, and as a means of eliminating transaction costs which 
     are not justified by the likely recovery from these parties.

                              ii. Proposal

       The Administration proposes to provide exemption from 
     liability special treatment to ``de micromis'' parties, but 
     to distinguish between contributors of MSW on the one hand, 
     and contributors of hazardous substances generally on the 
     other. Cutoffs of five hundred (500) pounds of MSW, and ten 
     (10) pounds or liters of hazardous substances, respectively, 
     would be established. ``De micromis'' MSW contributors whose 
     contributions fell below the MSW cutoff would have an 
     absolute exemption from CERCLA liability. ``De micromis'' 
     non-MSW contributors whose contributions fell below the non-
     MSW cutoff would be wholly exempt from third-party 
     contribution actions and would be exempt unless their 
     contribution significantly contributed to response costs.

                         b. De Minimis Parties

                                i. Issue

       CERCLA authorizes expedited settlements with de minimis 
     parties. In adding this provision to CERCLA in 1986, the 
     Congress recognized the need to provide small volume waste 
     contributors an early opportunity to fully resolve their 
     liability for a site to avoid both the full impact of 
     CERCLA's joint and several liability scheme and the 
     transaction costs incurred in monitoring site activities and 
     defending against contribution claims.
       However, the absence of information required to make the 
     statutory determination of eligibility, uncertainties in the 
     statutory text concerning the level of information needed for 
     this determination, and the resources required to negotiate 
     de minimis party settlements have resulted in an under-
     utilization of these authorities. As a result, many de 
     minimis waste contributors have had to incur costs in 
     monitoring developments at Superfund sites and have been 
     subjected to third party contribution actions with their 
     attendant high transaction costs. In addition, under-
     utilization of the de minimis settlement authority has been 
     an impediment to reaching an expeditious overall settlement 
     with the larger waste contributors.

                              ii. Proposal

       The Administration proposes amendments to make it 
     substantially easier for EPA to settle with de minimis waste 
     contributors earlier in the site remediation process. Among 
     other things, the amendments would require that the 
     government need only show that the individual contributor's 
     contribution, not the collective contribution of the entire 
     de minimis contributor class, is minimal in comparison to the 
     total waste contributions; and that the contributor's waste 
     is not significantly more toxic than other wastes.
       Moreover, to ensure greater use of this authority, EPA 
     would be required, when it rejects a written request for a de 
     minimis settlement, to explain in writing why use of this 
     authority is inappropriate.

                        c. Lenders and Trustees

                                i. Issue

       While CERCLA Sec. 101(20)(A) exempts persons who, without 
     participating in the management of a facility, hold indicia 
     of ownership in the facility primarily to protect a security 
     interest, questions regarding the judicial interpretation of 
     this ``security interest'' exemption have generated 
     uncertainty within the financial and lending communities. In 
     particular, uncertainty exists with regard to the extent to 
     which a secured creditor may undertake activities to oversee 
     the affairs of a person whose facility is encumbered by a 
     security interest without incurring CERCLA liability. 
     Specifically, there is concern over whether actions commonly 
     taken by a secured creditor (``lender'')--such as monitoring 
     facility operations; requiring compliance with legal 
     requirements and compliance-related activities; 
     refinancing or undertaking loan workouts; providing 
     financial advice; and undertaking other similar actions 
     that may affect the financial, management, and operational 
     aspects of a business--may constitute evidence that the 
     lender is ``participating in the management of a 
     facility.''
       In April 1992, EPA promulgated its Final Rule on Lender 
     Liability. The Final Rule defined and amplified the meaning 
     of the key terms of the statutory exemption. In addition to 
     clarifying the meaning of the terms and providing a ``bright 
     line'' liability standard, the overall goals of the final 
     rule were: (1) to allow lenders to work with their borrowers, 
     without necessarily incurring liability; (2) to preserve a 
     lender's traditional remedy--foreclosure; and (3) to ensure 
     that the benefits of a taxpayer-financed cleanup inure to the 
     benefit of the public, and not to the private lender.
       Lending institutions and others who act as trustees have 
     expressed concern about the potential CERCLA liability of 
     trustees. In particular, concern has been expressed about the 
     potential liability of ``passive trustees,'' i.e., those who 
     perform ministerial tasks pursuant to trust instruments but 
     exercise little or no control over the management of trust 
     property. Since these trustees often hold legal title to the 
     trust property, there is a risk that they will be found 
     personally liable as ``owners'' under Sec. 107(a)(1) when 
     response costs are incurred at property held in trust.

                              ii. Proposal

       The Administration proposes an amendment to Sec. 101 of 
     CERCLA to explicitly state that the term ``owner or 
     operator'' does not include persons who hold title to a site 
     solely as a trustee, custodian, or fiduciary as required by 
     law, provided that they do not contribute to the release or 
     threatened release of hazardous substances and are not 
     affiliated with a liable party, other than through a 
     custodian or fiduciary role, provided that they comply with 
     any requirements that EPA establishes for such parties 
     through regulation.
       The Administration's legislation also would clarify EPA's 
     authority to issue regulations interpreting the limitations 
     on liability of lenders.

            d. Municipal Solid Waste (``MSW'') Contributors

                                i. Issue

       The principal question is whether generators and 
     transporters of MSW and municipal sewage sludge (``MSS'') 
     should be treated differently than other liable parties at 
     Superfund sites. Superfund does not specifically address 
     generators or transporters of MSW and accordingly does not 
     exempt them from potential liability for cleanup costs. The 
     law imposes liability on, among others, a person who arranged 
     for the disposal or treatment of hazardous substances. 
     Studies indicate that ordinary household waste may contain a 
     small percentage of a variety of hazardous substances. In 
     December 1989, EPA issued the Interim Municipal Settlement 
     Policy (``Policy''), which stated that EPA would not pursue 
     generators or transporters of MSW under Superfund absent 
     site-specific information that there were hazardous 
     substances present from industrial, commercial, or 
     institutional processes. This statement was an exercise of 
     enforcement discretion and not an interpretation of the 
     statute.
       Although EPA generally has not pursued MSW generators or 
     transporters, the Policy did not prevent other responsible 
     parties from pursuing them for contribution. Municipalities 
     and private generators and transporters of MSW have been sued 
     or threatened with third-party litigation by private parties 
     who believe that MSW contains hazardous substances and also 
     contributes significantly to the costs of Superfund remedies 
     due to the large volume disposed of at sites. Such actions 
     have caused or have the potential to cause substantial 
     transaction and remediation costs that exceed what the 
     Administration believes to be the MSW generators' or 
     transporters' fair contribution to site cleanup.

                              ii. Proposal

       ``De Micromis'' MSW Contributors. See Part IV. A. 3. a. 
     ``De Micromis'' Parties above.
       Non-``De Micromis'' MSW Contributors. The Administration 
     proposes to provide settlement opportunities to MSW 
     generators and transporters through the expedited settlement 
     process (See Allocating Cost Shares, Part B below), with the 
     MSW liability limited in aggregate to not more than 10% of 
     the total cost of cleanup at the site. If the allocable share 
     attributable to MSW exceeds the share assumed by such parties 
     in any settlement with the federal government, the difference 
     would be assigned to the orphan share.
       The proposal provides contribution protection to an MSW 
     contributor that settles with the United States. This 
     approach would also specify that parties that do not elect to 
     settle in this manner will be placed in the general cost 
     allocations process.

                   e. Municipal Owners and Operators

                                i. Issue

       The principal question is whether municipal owners and/or 
     operators of Superfund sites should be treated differently 
     than private owner/operators because they provided a public 
     service in owning/operating landfills and because they may 
     experience ability to pay problems.

                              ii. Proposal

       While the Administration proposes no adjustment to the 
     liability of municipal owners and operators, the 
     Administration recognizes the unique circumstances of 
     municipal owner/operators and is committed to provide relief 
     to those parties through expedited settlements based on 
     ability to pay. The proposal also contains an explanation of 
     the factors which may be relevant in determining such 
     parties' ability to pay. A municipal party's provision of 
     ``in-kind'' services may also be taken into account 
     (considered at fair market value).

             f. Authority to Ensure Finality of Settlements

                                i. Issue

       Existing CERCLA settlement authorities do not permit 
     immediately effective releases from liability in most cases, 
     which is contrary to most parties' expectations in settling 
     litigation. Conditioning this aspect of settlement on success 
     of the chosen remedy protects the Fund but can leave parties 
     open to future claims many years later. Responsible parties 
     contend that since EPA selects the remedy, it should bear the 
     risk that the remedy will not work.
       The current statute also restricts EPA's settlement 
     authority by requiring EPA to include in all but 
     ``extraordinary circumstance'' settlements a reopener 
     provision for future liability based on unknown site 
     conditions. Responsible parties claim that this ``statutory 
     reopener'', in effect, imposes perpetual liability and serves 
     as a disincentive to settlement.

                              ii. Proposal

       The Administration proposes to amend CERCLA in a manner 
     that will strike an appropriate balance between the competing 
     interests of providing finality to settling parties while 
     protecting the Fund against the need to fund future remedial 
     actions. The first amendment will provide that the 
     government's covenant not to sue for future liability will 
     become effective upon entry of the consent decree, but will 
     remain in effect only so long as the settling parties are in 
     compliance with the decree. A second amendment would empower 
     EPA to enter into settlements with complete and final 
     covenants not to sue for future liability--without statutory 
     reopeners--where, among other things such covenants are in 
     the public interest and where the settlors pay a premium for 
     the risks of remedy failure and unknown conditions.

                    g. Liability of Federal Agencies

                            i. Mining sites

                               (i). Issue

       I can be argued that the United States may be liable under 
     Section 107 of CERCLA as the past or present ``owner'' of 
     public lands subject to ``unpatented mining claims'' under 
     the General Mining Law of 1872, pursuant to which private 
     parties engaged in mining activities on such lands which 
     caused or contributed to the release of hazardous substances. 
     The United States' ``ownership'' interest is unlike that of a 
     private party's. For example, once a mining claim was 
     asserted, the miner effectively controlled full use of the 
     property, and the United States could not prevent or manage 
     the mining activities. Upon request of a miner with a valid 
     claim, the United States was statutorily compelled to grant a 
     ``patent'' (i.e., deed) to the property. In addition, it was 
     not until, passage of the Federal Land Policy and 
     Management Act (``FLPMA'') that the United States was 
     conferred an ability to ``manage'' the mining activities 
     permitted on federally-held lands.
       CERCLA Sec. 120 imposes certain requirements upon federal 
     agencies, including the requirement that they enter into 
     interagency agreements (``IAGs'') with EPA; and include in 
     annual budget submissions a review of alternative funding 
     that might be used to provide for cleanup costs.

                             (ii). Proposal

       The Administration's bill proposes that the United States 
     be exempt from liability under CERCLA when its ownership 
     interest and/or involvement with a mining site is solely as a 
     result of its statutorily compelled land management 
     functions; and the act of disposal giving rise to CERCLA 
     liability occurred before 1976. The Administration's bill 
     also proposes that for unpatented sites, the United States 
     remains subject to Section 120, and will finance response 
     activity where it is unable to locate viable PRPs. The bill 
     provides that in any event, the United States' potential 
     operator or ``arranger'' liability under Section 107 remains 
     intact.

     ii. Liability for penalties at sites owned by non-federal PRPs

                               (i). Issue

       The present statute explicitly waives sovereign immunity in 
     Sections 120(a) and 122(l), and renders federal agencies 
     liable for penalties regarding federal facilities. The 
     present statute does not clearly waive immunity for penalties 
     arising at private party sites.

                             (ii). Proposal

       The Administration's bill proposes a Miscellaneous 
     Amendment explicitly waiving sovereign immunity in CERCLA so 
     as to render the United States liable for all civil and 
     stipulated penalties under CERCLA, whether or not it owns the 
     Site.

                         iii. Natural disasters

                               (i). Issue

       CERCLA liability may deter governmental entities and/or 
     their contractors from responding to natural disasters on 
     contaminated lands.

                             (ii). Proposal

       The Administration's bill proposes a Miscellaneous 
     Amendment explicitly stating that the waiver of sovereign 
     immunity does not extend to the United States when it is 
     responding to natural disasters on contaminated lands. (We 
     anticipate that this Administration bill ultimately will 
     extend this protection to state and local governments and 
     possibly their contractors.)

                         iv. Co-response agency

                               (i). Issue

       Federal agencies, such as the U.S. Coast Guard, the U.S. 
     Army Corps of Engineers, and EPA, in implementing response 
     action, as mandated by CERCLA and/or the Clean Water Act, may 
     be subject to CERCLA liability.

                             (ii). Proposal

       The Administration's bill proposes a Miscellaneous 
     Amendment, explicitly stating that the waiver of sovereign 
     immunity contained in section 120(a) does not extend to 
     federal agencies implementing response action pursuant to 
     CERCLA and/or the Clean Water Act.

                v. War-time economic regulatory control

                               (i). Issue

       The United States may be held liable for activities taken 
     by a private party because of its regulation of the economy 
     during wartime.

                             (ii). Proposal

       The Administration's bill proposes a miscellaneous 
     amendment explicitly stating that the waiver of sovereign 
     immunity does not extend to the United States' economic 
     regulation of industry during war-time.


b. reducing transaction cost and increasing fairness in the allocation 
                             of cost shares

                                1. Issue

       CERCLA's liability regime now operates to ensure prompt 
     settlement of government-initiated actions and expeditious 
     initiation of cleanup by private parties. The 
     Administration's proposal preserves the incentives the 
     current scheme creates for environmental compliance and 
     responsible handling of hazardous substances. The reforms 
     ensure the pace of cleanup proceeds expeditiously and 
     provides incentives for private party action. Similarly, the 
     proposal decreases the total transaction costs.
       There is, however, much justified criticism of the status 
     quo. Many complain of the unfairness of a regime that permits 
     parties to be held liable for more than what they regard as 
     their ``share.'' In addition, government-initiated 
     litigation often commences a second round of private party 
     litigation seeking contribution from other PRPs at the 
     site. Due to the limited information on which allocation 
     can be based and the magnitude of the liability, 
     negotiation and litigation among PRPs on issues relating 
     to allocating costs often is protracted and can generate 
     considerable transaction costs. There is a legitimate 
     federal interest in reducing the transaction costs that 
     CERCLA occasions. A second and related concern is the 
     extent to which contribution actions generate litigation 
     involving certain parties for which the costs of 
     protracted litigation are not justified by the likely 
     recovery from those parties. These parties include ``de 
     micromis'' and de minimis contributors to a site, parties 
     of extremely limited means, municipalities and other 
     contributors of extremely small amounts of household 
     hazardous waste.

                              2. Proposal

       The Administration proposes an early, expeditious and 
     obligatory cost allocation process, for NPL sites with more 
     than two parties, reinforced by appropriate incentives to 
     settle and disincentives to litigate. The Administration 
     regards this as the best approach to the problem of 
     transaction costs and increasing fairness, because the 
     proposal should substantially curtail current contribution 
     litigation and wrangling over allocation of costs without 
     creating a new and potentially expensive and time-consuming 
     formal administrative or judicial process. The proposal 
     places a moratorium on the commencement of cost recovery and 
     contribution suits until the allocation process is concluded. 
     The allocation process must start no later than eighteen (18) 
     months after the commencement of the remedial investigation/ 
     feasibility study. To initiate the allocation process, EPA 
     would notice potentially responsible parties that may be 
     assigned shares and provide such parties with a list of 
     neutral allocators. The allocation will be governed by 
     published regulations based on the Gore factors. PRPs may 
     elect to include natural resource damages in the allocation 
     process. EPA would provide the opportunity for the allocation 
     parties to voluntarily settle their cost shares. Failing 
     that, the allocator would issue an allocation scheme based on 
     percentage shares of responsibility, including orphan shares. 
     The Federal Government would accept any settlement offer 
     based on the allocation scheme, provided that such offer 
     include appropriate premia and terms and conditions of 
     settlement, unless it determined that such settlement was not 
     fair, reasonable and in the public interest.
       Settling PRPs may receive a final release from future 
     liability for remedy failure and undiscovered risks, provided 
     that among other things, they pay a premium and there are 
     adequate assurances for performance of a final remedial 
     action.
       The proposal provides incentives to settle on the basis of 
     the allocation, and disincentives to litigate, including the 
     availability of orphan share funding and greater finality for 
     settling parties, and the imposition of joint and several 
     liability and fee-shifting on non-settling parties. It also 
     requires settling parties to waive their right to seek 
     contribution, thus limiting transaction costs associated with 
     litigation primarily to those incurred from government 
     initiated claims against recalcitrant parties.
       The proposal also provides an opportunity for early 
     settlement with those parties for whom the benefit of 
     litigation or participation in allocation greatly exceeds 
     their liability or ability to pay. This includes de minimis 
     waste contributors, parties with limited financial means, and 
     generators and transporters of MSW.
       The Administration proposes to fund shares of non-viable 
     and limited ability to pay parties up to $300 million a year.

                       Title V.--Remedy Selection


                   A. Speeding cleanups, cutting cost

                                1. Issue

       Protracted and costly site cleanups are a result of a 
     number of factors under the current approach for selecting 
     remedies. The law currently does not specify a standard level 
     of cleanup nationwide; instead it establishes a complex 
     cleanup framework under which applicable or relevant and 
     appropriate state and federal standards are used to set 
     cleanup levels on a site-by-site basis. This site-by-site 
     determination encumbers remedy selection by constraining 
     EPA's ability to draw on the last thirteen years of 
     experience in determining appropriate remedies.

                  2. General Overview of the Proposal

       The Administration's proposal is premised on the principle 
     that all communities are entitled to receive the same 
     protection from carcinogenic and non-carcinogenic health 
     risks. Establishing national generic cleanup levels is at the 
     core of achieving this concept. Reduced cleanup cost would 
     result from establishing national cleanup levels by 
     eliminating inefficient site-by-site decision making, 
     wherever possible. An ancillary benefit of national cleanup 
     levels is that they would promote the use of generic remedies 
     by fixing the endpoints that categories of remedies would 
     need to meet. Generic remedies tap into experience gained 
     from remediating similar sites and obviate the need for 
     extensive study.


                           b. cleanup levels

                                1. Issue

       Determining the standards for cleanups has been a matter of 
     recurring concern. At present, remedies require compliance 
     with ``applicable'' or ``relevant and appropriate'' 
     requirements of other federal and more stringent state 
     environmental laws (``ARARs''). As a result, ARARs are used 
     to establish cleanup levels. Where no ARAR exists, cleanup 
     levels are determined by site specifically using risk 
     assessment methodologies to achieve a goal of protectiveness.
       The use of ARARs has been identified as a principal cause 
     of delay in cleanups (because of disputes between regulators 
     over interpretation). Furthermore, while ARARs sometime 
     provide suitable cleanup standards, in some cases ARARs 
     increase costs of remedies significantly without a 
     commensurate level of risk reduction. Moreover, mandatory 
     compliance with ``relevant and appropriate'' requirements 
     imposes conditions on Superfund remedies that are not applied 
     in similar cases outside the CERCLA context.
       Since ARARs are not generally available for soil, one of 
     the key media impacted at Superfund sites, most sites require 
     a site-specific, risk-based determination of soil cleanup 
     levels under the current system. Also, the lack of soil 
     cleanup standards is an impediment to voluntary cleanups, 
     since it is difficult for private parties to predict the 
     level of cleanup necessary to eliminate the need for 
     regulatory action later.
       Insufficient standardization in risk-based approaches for 
     determining cleanup levels has resulted in concerns regarding 
     consistency and has also hindered voluntary cleanup. Although 
     it is evident that certain site conditions necessitate some 
     degree of flexibility in determining appropriate cleanup 
     levels.

                              2. Proposal

       The Administration's proposal increases predictability and 
     consistency in determining cleanup levels to encourage 
     voluntary cleanups; ensures that cleanup levels are suitable 
     for application at Superfund sites to increase the cost-
     effectiveness of remedies; and greatly simplifies the process 
     for determining such levels, to improve efficiency. These 
     objectives are accomplished by developing national goals, 
     national generic cleanup levels and a national risk 
     assessment protocol which would ensure that remedial actions 
     are protective of human health and the environment.
       National generic cleanup levels would be developed for 
     specific chemicals. The cleanup levels would reflect 
     different land uses (e.g., different chemical-specific 
     cleanup levels for residential and industrial land uses). 
     Cleanup levels could also be calculated using site-specific 
     parameters that are known to vary on a site-specific basis 
     (e.g., pH, depth of groundwater, etc.). The national generic 
     cleanup levels would also represent a level below which a 
     response action is not required.
       Where appropriate, the Administrator could rely on a site-
     specific risk assessment to determine the protective level of 
     cleanup for a site. A national risk protocol for conducting 
     risk assessment would be used in this instance.
       Remedies would comply with the substantive requirements of 
     any federal environmental facility and siting law that is 
     suitable for application to a remedial action at the site; 
     and any state requirement that specifically addresses 
     remedial action that is more stringent than any federal 
     requirement, unless waivers are invoked. As a result, sites 
     located in States with more stringent cleanup levels would be 
     remediated to the State levels instead of federal 
     national generic cleanup levels or federal site-specific 
     risk-based cleanup levels, unless waivers are invoked. 
     Waivers are consistent with those in the current statute, 
     with an additional waiver for when a generic remedy is 
     selected at a site.


                      c. remedy selection process

                                1. Issue

       There is a widely held perception that Superfund remedies 
     are excessively costly. Many believe that remedies incur 
     substantial costs without achieving a commensurate degree of 
     risk reduction, and that some remedies are based on 
     unnecessarily stringent land uses. There also is general 
     agreement that the existing remedy selection process needs to 
     be streamlined to simplify and expedite the selection of 
     remedies to achieve in faster risk reduction at sites.
       The current remedy selection process derived from the 
     statutory mandates and preferences requires that remedial 
     actions meet two threshold criteria: protectiveness of human 
     health and the environment and ARARs. Remedial alternatives 
     that meet the two threshold criteria are evaluated using five 
     balancing criteria: permanence, treatment, short-term risk, 
     implementability and cost. The remedial alternative that 
     provides the best balance between these criteria is to be 
     preferred. State and community acceptance of the preferred 
     remedial action is then considered prior to the selection of 
     a remedy.
       Although the preferred remedy could be modified based on 
     State and community acceptance, this raises concern that the 
     communities' views are solicited too late in the process to 
     be fully meaningful.

                              2. Proposal

       The Administration's proposal continues to mandate that all 
     remedies must be protective of human health and the 
     environment and attacks the three factors under the current 
     remedy selection process that drive the cost of remediation: 
     ARARs, the mandate for permanence to the maximum extent 
     practicable, and the preference for treatment.
       The role of ARARs would be modified as discussed above. The 
     mandate for permanence would be eliminated and instead, the 
     long-term reliability of a remedy would be considered. This 
     change would place permanent treatment remedies and 
     containment remedies on a level playing field, instead of 
     favoring treatment for all waste other than hot spots. The 
     proposal specifically limits the preference for treatment to 
     hot spots. Hot spots are areas of hazardous substances that 
     are highly toxic or highly mobile, cannot be reliably 
     contained, and would present a significant risk to human 
     health or the environment should exposure occur. When a 
     treatment remedy is not available or is too costly and it is 
     likely that a less costly treatment remedy would become 
     available within a reasonable period of time, interim 
     containment could be selected. Any interim containment remedy 
     would include adequate monitoring to ensure the continued 
     integrity of the containment system. When an appropriate 
     treatment remedy becomes available it would be selected 
     and implemented.
       Under the proposal, remedies would continue to utilize 
     treatment, containment, other remedial measures, or any 
     combination of such measures. The appropriate remedial 
     approach would be determined on a site-specific basis by 
     applying modified remedy selection criteria. The remedy 
     selection nine criteria would be changed and reduced to five, 
     to streamline the remedy selection process. An appropriate 
     remedy that is protective of human health and the environment 
     would be determined by considering the remedy's: (1) 
     effectiveness; (2) long-term reliability, that is, its 
     capability to achieve long-term protectiveness of human 
     health and the environment; (3) implementation risk; (4) 
     acceptability to the affected community; and (5) cost in 
     relation to the preceding factors. Under this approach, both 
     cost and community acceptance would play a greater role than 
     they presently do.
       To further streamline remedy selection and facilitate rapid 
     voluntary action, generic remedies for categories of sites 
     would be established taking into account the factors 
     enumerated above. Expedited procedures that include community 
     involvement would also be developed for selecting generic 
     remedies at individual sites.
       A number of other changes are proposed to allow for early, 
     direct and meaningful community involvement as described 
     above. These changes include the opportunity to establish 
     Community Work Groups (CWG) and Community Information Access 
     Offices. Through the CWG, communities would play a larger 
     role in making land use recommendations at sites. (A more 
     detailed description of the issues and proposed changes to 
     address community involvement is presented in Part I A.2.a.).


                           D. REMOVAL ACTIONS

                                1. Issue

       While the streamlined remedy selection process described 
     above would accelerate risk reduction activities, a need to 
     use removal actions to achieve immediate risk reduction would 
     remain. Certain statutory constraints need to be changed to 
     enhance the effectiveness of employing removal actions to 
     accomplish rapid risk reduction.

                              2. Proposal

       To facilitate the effective use of removal authority the 
     dollar limit on Fund-financed removals would be increased 
     from $2 million to $6 million; and the time for completion 
     would be expanded from one year to three years. Additionally, 
     the proposal modifies the waiver from these limitations to 
     clarify that a waiver could be used where the nature of the 
     long-term remedial action was uncertain or where it was 
     expected that the removal would make remedial action 
     unnecessary.
       The statutory definition of removal would be clarified to 
     remove the ambiguity of whether removal authority is limited 
     to emergency situations or short term actions. Finally, to 
     address concerns that increased use of removal authority may 
     reduce public participation, a public comment period of 
     thirty (30) days would be required whenever the planning 
     period for a removal action exceeds six months.

          Title VIII.--Environmental Insurance Resolution Fund


                     a. insurance transaction cost

                                1. Issue

       Under the current law, high transaction costs result from 
     disputes between insurers and insureds arising out of the 
     liability imposed by the Comprehensive Environmental 
     Response, Compensation and Liability Act of 1980 (CERCLA). 
     These disputes between insurance companies and insureds 
     concern the applicability of contracts of insurance to 
     liability under CERCLA which often result in protracted 
     litigation.

                              2. Proposal

       The Administration's proposal establishes the Environmental 
     Insurance Resolution Fund. The Fund is funded solely by fees 
     imposed on insurance companies; the Fund will offer holders 
     of insurance policies comprehensive resolutions of their 
     CERCLA claims against insurance companies. The Fund is 
     structured to eliminate the vast majority of litigation 
     between insurers and insureds and expedite the availability 
     of funds for response actions.
       The Fund will offer one comprehensive resolution of all 
     eligible costs of an eligible person at eligible sites.
       An eligible person is a person (1) who is a PRP at an NPL 
     site or is subject to liability for a removal at a non-NPL 
     site and (2) who holds or held certain insurance coverage.
       Eligible costs are (1) response, natural damages, and duty-
     to-defend costs incurred at an eligible NPL site, and (2) 
     removal and duty-to-defend costs incurred at a non-NPL site. 
     All costs must be incurred in connection with the disposal of 
     a hazardous substance on or before December 31, 1985. 
     Eligible costs of an eligible person are capped at $15 
     million, unless the eligible person can demonstrate a greater 
     level of insurance coverage.
       Resolution offers made by the Fund shall be for a stated 
     percentage of all eligible costs incurred by eligible persons 
     at eligible sites.
       First, the Fund will by regulation classify each state into 
     one of three percentage categories based on how State 
     insurance law applies to disputes between insurers and 
     insureds with respect to superfund liability. The percentage 
     category is 60 percent for the 10 States in which the law 
     is most favorable to insureds; 20 percent for the 10 
     States in which the law is most favorable to insurers; and 
     40 percent for all other States. The final regulation 
     issued by the Fund shall not be subject to judicial 
     review.
       Second, the Fund will determine the appropriate State 
     percentage applicable to an eligible person. If an eligible 
     person had established litigation venue in one State, the 
     percentage category of that State will govern the resolution 
     offer. If an eligible person had established more than one 
     State litigation venue, the State percentage will be the 
     average of the State percentages, weighted according to the 
     number of eligible sites located in such States. If an 
     eligible person has only one eligible site but had not 
     established a litigation venue in any State, the State in 
     which the site is located will determine the resolution 
     percentage. If an eligible person has more than one eligible 
     site and had not established a State litigation venue, the 
     State percentage will be the average of the State percentages 
     in which the sites are located, weighted according to the 
     number of sites located in those states.
       Litigation venue is deemed established if, on or before 
     December 31, 1993, an eligible person had pending in a court 
     of competent jurisdiction a complaint or cross complaint 
     against an insurer with respect to eligible costs at an 
     eligible site, and no motion to change venue with respect to 
     such complaint was pending on or before January 31, 1994.
       An eligible person must accept or reject a resolution 
     within 60 days; an eligible person who does not do so is 
     deemed to have rejected the offer.
       An eligible person who accepts a resolution must agree to 
     waive any future claims against an insurer for eligible 
     costs, and to stay or dismiss each claim pending against an 
     insurer for such costs. Any such claim may be reinstated upon 
     failure of the Fund to timely fulfill its obligations under 
     the resolution. Applicable statutes of limitation with 
     respect to such claims are tolled during the pendency of the 
     stay of pending litigation established by the title.
       Payment of eligible costs pursuant to a resolution are (1) 
     made over 8 years with respect to such costs incurred on or 
     before the date the resolution is accepted and (2) payable 
     within 60 days with respect to such costs incurred after the 
     date the resolution is accepted.
       Payment of eligible costs is reduced once to the extent of 
     the insurance deductible or self-insured retention of an 
     eligible person.
       Eligible duty-to-defend costs that have previously been 
     paid by an insurer, and that are the subject to a dispute 
     between the insurer and the eligible person, are payable to 
     the insurer.
       If an eligible person rejects a resolution offer and 
     successfully litigates against an insurer, the Fund will 
     reimburse the insurer for the lesser of the resolution offer 
     or the final judgment obtained against the insurer. The Fund 
     may reimburse the insurer for litigation expenses if the 
     final judgment is less favorable than the resolution offered 
     by the Fund except that the total reimbursement to an insurer 
     may not exceed the resolution offered by the Fund. If the 
     litigation is unsuccessful, or the final judgment is less 
     favorable than the resolution offered by the Fund, the 
     insurer has a cause of action against the eligible person 
     for 20 percent of the reasonable costs and legal fees 
     incurred by the insurer in connection with the litigation.
       No provision of Title VIII, and no action by an eligible 
     person pursuant thereto, constitutes an admission of 
     liability in connection with the disposal of a hazardous 
     substance.
       The Fund shall report annually to the President and the 
     Congress on its activities. Such reports must contain a 
     financial statement audited by an independent auditor and an 
     assessment whether the fees collected by the Fund will be 
     sufficient to meet its anticipated obligations. In addition, 
     the Fund is required promptly to report to the President and 
     the Congress at any time it determines that the fees 
     collected by the Fund will be insufficient to meet its 
     anticipated obligations.
       The Fund shall be considered an agency of the United States 
     for purposes of certain criminal and civil penalties relating 
     to false or fraudulent statements or claims.
       Financial statements of the Fund shall be prepared in 
     accordance with generally accepted accounting procedures, and 
     shall be audited annually by an independent auditor.
       The Inspector General of the Environmental Protection 
     Agency may conduct audits and investigations of the Fund.
       Title VIII provides for an automatic stay of the 
     commencement or continuation of all actions arising from a 
     contract of insurance concerning insurance coverage for 
     eligible costs.
       The authority of the Fund to accept requests for 
     resolutions expires after September 30, 1999, and to make 
     resolution offers after March 31, 2000.
       Obligations or liabilities of the Fund shall not constitute 
     obligations or liabilities of the United States.-

          Funding of Environmental Insurance Resolution Reform


                              i. proposal

       Approximately 70 percent of the Environmental Insurance 
     Resolution Fund (``the Fund'') would be funded by a 
     ``environmental insurance resolution fee'' that would be 
     imposed on net premiums written by domestic and foreign 
     insurers and reinsurers for contracts providing certain U.S. 
     commercial liability insurance during the period from 1971 
     through 1985.
       Approximately 30 percent of the Fund would be funded 
     through an ``environmental insurance resolution assessment'' 
     on premiums from certain commercial insurance of U.S. risks 
     currently written by domestic and foreign insurers.
       This proposal would raise revenue of $2.5 billion over five 
     years, with approximately $1.75 billion attributable to the 
     environmental insurance resolution fee and $.75 billion 
     attributable to the environmental insurance resolution 
     assessment.


               ii. environmental insurance resolution fee

       The environmental insurance resolution fee (EIRF) would be 
     determined by multiplying a fee funding rate of 0.19 percent 
     by the sum of the company's adjusted net premiums written for 
     contracts or agreements providing (i) insurance, (ii) 
     proportional reinsurance, and (iii) nonproportional 
     reinsurance in each case with respect to qualified commercial 
     coverage (as defined below) of U.S. risks during the fifteen-
     year period beginning on January 1, 1971 and ending on 
     December 31, 1985.\1\ The Secretary of the Treasury will have 
     the authority to adjust the rate should actual collections 
     differ from anticipated collections.
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     Footnotes at end of article.
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  A. Net premiums written for qualified commercial insurance contracts

       Net premiums written for qualified commercial insurance 
     contracts means net premiums written for contracts providing 
     insurance of qualified commercial coverage of U.S. situs 
     risks (``qualified commercial contracts'') computed on the 
     basis of the annual statement approved by the National 
     Association of Insurance Commissioners (NAIC).
       Qualified commercial coverage means insurance coverage that 
     was, or should have been, categorized in the NAIC annual 
     statement as ``commercial multiperil'' or ``other liability'' 
     lines of business. However, contracts included in the 
     ``other liability'' line of business that insured only 
     certain types of coverage unrelated to commercial 
     liability (and thus could not generate exposure to 
     environmental insurance claims) would be excluded. For 
     example, medical malpractice insurance would be an 
     excluded coverage.

   B. Net premiums written for proportional reinsurance of qualified 
                          commercial coverage

       Premiums related to proportional reinsurance (i.e., first 
     dollar pro rata reinsurance) are identified by line of 
     business. Accordingly, net premiums written for proportional 
     reinsurance of qualified commercial coverage means net 
     premiums written for reinsurance on a proportional basis of 
     qualified commercial coverage computed either on the basis of 
     the annual statement approved by the National Association of 
     Insurance Commissioners (NAIC), or on the books and records 
     of the reinsurer, if the premiums are not allocated in the 
     annual statement to lines of business.

 C. Net premiums written for nonproportional reinsurance of qualified 
                          commercial coverage

       When insurance coverage is reinsured on a nonproportional 
     basis (i.e., reinsurance in excess of a retention by the 
     ceding company), the reinsurer does not separately report net 
     premiums written by line of business on the annual statement. 
     Thus, net premiums written related to such reinsurance would 
     be determined using a formula based on the insurance 
     industry's ceded premiums for qualified commercial coverage 
     from January 1, 1971 through December 31, 1985.
       To derive the net premiums written related to 
     nonproportional reinsurance of qualified commercial coverage, 
     a reinsurance ratio of 21 percent (or otherwise as determined 
     by the Secretary) would be multiplied by the net premiums 
     written, as reported on the NAIC annual statement (or 
     equivalent computational basis if an NAIC annual statement 
     was not prepared or nonproportional reinsurance premiums were 
     not separately identified on the annual statement), for the 
     nonproportional reinsurance line(s) of business.

                    D. Adjusted net premiums written

       In determining the adjusted net premiums written from 1971 
     through 1985, the sum of net premiums written for qualified 
     commercial insurance contracts and for proportional and 
     nonproportional reinsurance of qualified commercial coverage 
     for each year during the period would be adjusted by an 
     inflation factor. This adjustment would restate all premiums 
     to 1985 dollars.

                   E. Foreign insurers and reinsurers

       If the underwriting income on a contract issued or 
     reinsured by a foreign person, including a nonresident alien, 
     from 1971 through 1985 was not effectively connected with a 
     U.S. trade or business (or attributable to a U.S. permanent 
     establishment, deemed permanent establishment, or fixed 
     base), such person would be subject to an environmental 
     insurance fee, in lieu of the EIRF unless an election 
     described below were made.
       The environmental insurance fee would be imposed on the 
     aggregate limit of liability on each and any type of casualty 
     insurance contract insuring or reinsuring U.S. risks (a 
     ``qualified casualty contract''). In the case of proportional 
     reinsurance, the aggreate limit of liability on the contract 
     (or qualified portion thereof) would equal the percentage 
     actually placed through reinsurance. The fee would be 
     withheld and remitted to the Internal Revenue Service (IRS) 
     by the U.S. premium payor.
       Foreign persons could elect to be subject to the EIRF 
     instead of the environmental insurance fee. If such an 
     election were made, the EIRF would apply in the same manner 
     as it applies to U.S. insurers and reinsurers. The foreign 
     persons would be required to enter into a closing agreement 
     with the IRS to ensure collection of the fee.

       F. Exemptions from environmental insurance resolution fee

       A company would not be subject to the EIRF if it had a de 
     minimis amount of total net premiums written from January 1, 
     1971 through December 31, 1985 for qualified commercial 
     contracts or coverage.
       In addition, companies that could demonstrate to the IRS 
     that they have no potential exposure to claims for 
     environmental liability based on the type of insurance 
     contracts written or reinsured during 1971 through 1985 would 
     not be subject to the EIRF. For example, it is anticipated 
     that a company whose total net premiums from 1971 through 
     1985 for qualified commercial contracts were from the 
     insurance of commercial multiperil risks, medical malpractice 
     liability risks, and insurance agents' and brokers' liability 
     risks would be able to demonstrate that it is subject to the 
     EIRF only on the premiums related to the commercial 
     multiperil risks. A company seeking to demonstrate that it is 
     not subject to the EIRF would be required to provide 
     documentation in its initial report (discussed below).

                 G. Subsequent adjustments for factors

       Any adjustments to the funding rate or the reinsurance 
     ratio would be applied prospectively in the computation of a 
     company's EIRF. For example, adjustments could be required 
     because of the unknown application of the exemptions, outcome 
     of the elections by foreign insurers and reinsurers not 
     engaged in a U.S. trade or business, and insufficient 
     collections.

                  H. Administration and effective date

       The EIRF would be computed for each calendar year, or part 
     thereof, commencing with the first day of a month beginning 
     120 days after the date of enactment.
       On the first filing with the IRS, each company would be 
     required to report its net and adjusted net premiums written 
     for the insurance, proportional reinsurance, and 
     nonproportional reinsurance of qualified commercial coverage 
     separately for each calendar year from 1971 through 1985 (the 
     ``initial report''). The initial report would include a 
     reconciliation for each year of the net premiums written for 
     the ``other liability'' line of business as reported on the 
     annual statement to the company's net premiums written for 
     commercial general liability insurance policies included in 
     such line of business.
       The environmental insurance fee would be imposed on 
     qualified casualty contract coverage for periods beginning 
     the first day of a month beginning 120 days after the date of 
     enactment.

                        I. EIRF follows business

       The EIRF would follow the insurer (or its assets and 
     liabilities should it cease to exist) in any corporate 
     reorganization.
       If after December 31, 1985, but prior to February 2, 1994, 
     the company disposed of qualified commercial contracts, 
     through an assumption reinsurance transaction or loss 
     portfolio transfer whereby the reinsurer became solely liable 
     on the contracts transferred, the company will be permitted 
     to reduce its net premiums written for purposes of computing 
     the EIRF by the net written premiums generated from the 
     transferred insurance business from 1971 through 1985, 
     provided that the company reports the amount of such net 
     written premiums to the reinsurer and the reinsurer includes 
     such premiums in its base for purposes of its EIRF 
     computation.


           iii. environmental insurance resolution assessment

       The environmental insurance resolution assessment (EIRF) 
     would be determined by multiplying an assessment funding rate 
     of 0.30 percent by the company's gross premiums written for 
     commercial insurance contracts.\2\ The Secretary could 
     adjust the rate should actual assessment collections 
     differ from those anticipated.
       The EIRA would apply in the same manner with respect to 
     commercial insurance contracts written by foreign insurers of 
     U.S. risks and would be collected through withholding in the 
     case of contracts, the underwriting income on which would not 
     be effectively connected with a U.S. trade or business (or 
     attributable to a U.S. permanent establishment, deemed 
     permanent establishment, or fixed base).

      A. Gross premiums written for commercial insurance contracts

       Gross premiums written for commercial insurance contracts 
     means gross premiums written for contracts providing 
     insurance of commercial coverage. Gross premiums written 
     would be computed on the basis of the annual statement 
     approved by the NAIC (as reported in Schedule T) or on an 
     equivalent basis.
       Commercial coverage means insurance coverage that is, or 
     would be, categorized in the NAIC annual statement as 
     ``commercial multiperil,'' ``fire,'' or ``other liability'' 
     lines of business. However, contracts that insure only 
     certain types of coverage unrelated to commercial liability 
     included in the ``other liability'' line of business would be 
     excluded.

                           B. Effective date

       The EIRA would apply to gross premiums written for 
     commercial insurance contracts issued after date to 
     enactment.


                          iv. funding increase

       The Fund would assess annually and report promptly to the 
     President and Congress whether its collections from the EIRF, 
     EIRA, and environmental insurance fee will be sufficient to 
     meet the Fund's anticipated obligations. If there is an 
     anticipated shortfall, the rates used to determine the EIRF, 
     EIRA, and environmental insurance fee could be adjusted to 
     increase revenue in subsequent years by 40 percent so that up 
     to an additional 4.2 billion could be collected in each of 
     the third, forth, and fifth years.


                            v. miscellaneous

       Broad anti-abuse rules would be provided, including rules 
     that would prevent reclassification, recharacterization, or 
     relabeling of insurance coverage or abusive transfers 
     of business between affiliates, and any other rules 
     necessary to carry out the proposal.
       The EIRF and EIRA would be deductible for tax purposes 
     under Section 162 as an ordinary and necessary business 
     expense and each would be remitted quarterly to the IRS under 
     administrative rules similar to those that govern the 
     remittance of excise taxes.


      vi. environmental insurance resolution fund exempt from tax

       The Fund would be exempt from Federal income tax under 
     Section 501.


                               footnotes

     \1\ The fee funding rate of .19 percent is estimated to 
     generate revenue of $1,750 million over five years. This rate 
     would be adjusted in later years, if necessary.
     \2\ The assessment funding rate of .30 percent is estimated 
     to generate revenue of $750 million over five years. This 
     rate could be adjusted in later years, if necessary.
  Mr. LAUTENBERG. Mr. President, I am pleased to join Chairman Baucus 
in sponsoring legislation that will reform the Superfund hazardous 
waste site cleanup program and promote economic redevelopment in our 
communities.
  As chairman of the Senate Superfund Subcommittee, and representing 
the State that has the most Superfund sites in the country, I believe 
this legislation will provide both environmental and economic benefits 
to the communities, businesses, environmentalists, State, and local 
governments who are affected by the program--and whose recommendations 
are reflected in this bill.
  Mr. President, the Environmental Protection Agency has so far 
discovered over 1,300 Superfund sites around the Nation. Some 73 
million Americans live within 4 miles of those sites, and numerous 
studies have shown that people living near these sites suffer 
significantly higher risks of cancer, birth defects, and other serious 
health problems.
  Their problems are only compounded by the economic devastation that 
these communities face, as property values are devalued and they are 
unable to leave the very sites that are poisoning them.
  My home State of New Jersey, unfortunately, has the most Superfund 
sites of any State in the Nation. Our industrial legacy has caused 
contamination that threatens our fragile drinking water sources and 
stalls the economy of our State.
  This situation cries out for relief. And the Superfund law was 
supposed to provide that relief. But the law has clearly fallen short 
of its promise since it was first enacted in 1980.
  In the first few years, EPA Administrator Anne Gorsuch resigned and 
the head of the EPA Superfund Program, Rita Lavelle, went to jail 
because of charges that the Reagan administration was trying to gut the 
program.
  In 1986, Congress reauthorized the law with numerous improvements, 
but only over administration objections which stalled action until the 
program's authority lapsed and cleanups were forced to a standstill.
  When I assumed the chairmanship of the Senate Superfund Subcommittee 
in 1987, I held the first of 23 oversight hearings, revealing major 
problems in the implementation of the program. I also commissioned 
numerous General Accounting Office and EPA Inspector General 
investigations, and pursued with the administration the complaints from 
communities and businesses about the way the program was being run.
  In 1989, Senator Durenberger and I issued a major report with 
numerous recommendations for reforms in the program. Our work fell on 
deaf ears, and it is only since last year that the White House and EPA 
have shown a willingness and interest in reforming the program.
  My hearings and investigations disclosed numerous abuses in the 
program.
  We found hundreds of instances of municipalities and small businesses 
being sued, while EPA stood by idly, as industrial polluters tried to 
spread the cost of cleanup to innocent parties who had sent ordinary 
household garbage to landfills that later became Superfund sites. I 
introduced legislation, which was passed twice by the Senate, to 
provide relief to these small businesses and municipalities.
  We found lending being chilled and economic redevelopment stalled 
because banks feared that they would inherit Superfund liability if 
they made a loan to a company and took contaminated property as 
collateral. Again, I supported legislation, which passed the Senate, to 
provide relief to these lenders, and authored legislation to promote 
voluntary cleanups and economic redevelopment of contaminated 
properties.
  And we found communities being shut out of the cleanup process, 
litigation costs skyrocketing, and bickering between the Federal EPA 
and the States as they oversaw the program.
  Of course, there have been many accomplishments in the Superfund 
Program. EPA has secured over $8.3 billion of work from the responsible 
parties, completed cleanup at over 217 sites, performed over 3,000 
emergency removal actions, and screened some 35,000 sites for potential 
Superfund status. In New Jersey, over three-quarters of our 108 sites 
are beyond the study phase and half the subsites in the State have been 
completely cleaned up.
  But the controversy remains.
  When I began Superfund reauthorization hearings last year, I 
announced four principles that would guide me--and continue to guide 
me--as we revamp the law. Those principles are:
  First, to speed up cleanups; second, to make the law fairer, 
particularly for municipalities and small businesses; third, to spend 
more money on cleanups and less on litigation; and fourth, to eliminate 
waste, fraud, and abuse from the program.
  The legislation that we are introducing today represents a giant step 
forward toward accomplishing these four goals.
  First, cleanups will be streamlined, speeded up, and made less costly 
by using presumptive, cookie-cutter remedies for certain well-studied 
types of sites; fostering voluntary cleanups and private market 
redevelopment of fallow contaminated land; eliminating duplication that 
has led to bickering, delays, and wasteful expense between the State 
and Federal Government in overseeing cleanups; and promoting innovative 
technology for cleaning up sites more efficiently and cost-effectively.
  Second, the bill will cap the liability of small businesses and 
municipalities who sent ordinary household garbage to landfills that 
became Superfund sites. Municipal owners or operators of Superfund 
sites will not be required to pay more than they can afford--so we 
don't sacrifice police or fire protection services as a result of the 
unfunded mandates imposed by the Federal Government. The bill will also 
exempt from liability the truly tiny de micromis parties, and provide a 
special, early-out settlement opportunity for small businesses and de 
minimis contributors of waste. For the first time, EPA will be 
expressly required to give relief to small businesses when it 
negotiates these early-out settlements.
  Third, the bill will eliminate literally thousands of lawsuits that 
often drag on for years as parties try to determine their respective 
shares of liability. Those lawsuits will be replaced with a single, 
out-of-court forum at each site where a neutral arbitrator will decide 
each party's fair share of liability. Nonsettlors will remain subject 
to the full force of joint and several liability.
  Fourth, the bill will vastly expand the role of communities in 
deciding how their sites will get cleaned up. Community working groups, 
with broad representation from the local community, will be created to 
assure involvement by interested citizens earlier and more often in the 
cleanup process. Technical assistance grants, that allow citizens to 
hire expert advisors on the cleanup process, will be made available 
much earlier in the site investigation process.
  And statewide citizen information and access offices will serve as a 
clearinghouse and resource center for communities in the State.
  Fifth, the bill will incorporate the voluntary cleanup legislation 
that I introduced last year and provide relief to lenders, trustees, 
and prospective purchasers of these sites so that the private market 
will once again invest in these properties and free communities of the 
economic stigma of contamination.
  I would also like to highlight an area in the bill that is still 
evolving. Insurers have testified that they are facing as much as $50 
billion of potential Superfund exposure, and need certainty as to the 
liability that they are facing. This provision, establishing an 
insurance trust fund, was developed by the administration in 
discussions with insurers and policyholders. It is an effort to provide 
certainty to insurers--something they've said they desire--without 
jeopardizing cleanups or infringing on the rights of their 
policyholders.
  I understand that many insurers and policyholders have informed the 
President that these provisions are a strong starting point, and that 
they share the goal of ending the wasteful litigation between insurers 
and policyholders. I also understand that these insurers view it as 
important that any solution to this issue be fair and reasonable for 
the affected parties.
  All these changes will fundamentally reform the program. EPA has 
estimated that these reforms will slash private sector litigation 
costs, and cut cleanup costs by one-quarter. But it will not be easy to 
enact these changes.
  The last time we reauthorized Superfund, the resistance of the 
administration delayed enactment of the law until the program lapsed 
and cleanups came to a halt. The continuing resistance of the Bush 
administration to push for reform created a climate where it was 
impossible to improve the situation.
  In fact, the only Superfund liability legislation to pass the Senate 
apart from the overall reauthorization has been legislation that I 
authored to provide relief from frivolous litigation to taxpayers, 
small businesses, and municipalities, and another bill that I supported 
to relieve lenders of undue Superfund burdens and encourage lending.
  So we will need the continuing support of the President, and a 
bipartisan effort to bring about the changes that business, 
environmentalists, State, and local governments want.
  Mr. President, as we plunge into the reauthorization process, we must 
never forget what this is all about. People are suffering from cancer, 
birth defects, miscarriages, and all the financial and emotional trauma 
of being continually exposed to the chemicals that are causing these 
problems. We have a duty to reform the system and allow our citizens to 
get on with their lives.
  I urge my colleagues on both sides of the aisle, and the 
environmental and business community, to build on the consensus that 
has been developed so far and enact new Superfund law by the end of 
this year. With the continuing leadership of Senators Baucus, Chafee, 
and Durenberger, whose participation to date has been invaluable, we 
will move quickly into the legislative process and strive to produce 
the new law. There are 73 million Americans counting on us.

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