[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Senate]
[Pages S9565-S9572]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. Baucus, Mr. Reid, Mr. 
        Moynihan, and Mr. Graham):
  S. 2028. A bill to assist the States and local governments in 
assessing and remediating brownfields and encouraging environmental 
cleanup programs, and for other purposes; to the Committee on 
Environment and Public Works.

[[Page S9566]]

         the brownfields and environmental cleanup act of 1996

  Mr. LAUTENBERG. Mr. President, today, along with Senators Baucus and 
Reid, I am introducing the Brownfields and Environmental Cleanup Act of 
1996. This legislation is designed to foster the cleanup and reuse of 
thousands of lightly contaminated and abandoned properties across the 
country.
  Mr. President, I have long been interested in the issue of abandoned, 
underutilized and contaminated industrial properties, commonly known as 
brownfields.
  For years, decaying industrial plants have defined the skyline and 
contaminated the land in many of our urban, suburban, and rural areas.
  Their rusting frames, like aging skyscrapers, are a silent reminder 
of the manufacturers that left, taking jobs--and often hope--with them.
  Yet, in these fallow fields may lie the seeds of economic 
revitalization. I continue to feel, as I did when I introduced similar 
legislation in 1993, that a brownfields' cleanup program can spur 
significant economic development and create jobs. Such a cleanup 
initiative makes good environmental sense, and good business sense.
  In fact, if one picture is worth a thousand words, then we need only 
look at a few of the brownfields' success stories in my State of New 
Jersey.
  In Hackensack, the city's department of public works yard, and an 
adjacent oil tank farm, have been redeveloped as a Price Club discount 
store, complete with riverwalk and park area. The site is now estimated 
to be worth about $15 million dollars, and the project has created 350 
jobs.
  Near Elizabeth, NJ, a withering brownfield has been converted into a 
thriving IKEA furniture store.
  The story is the same across the country, where unused, unattractive 
land is being transformed into valuable community assets.
  A pilot project in Cleveland resulted in $3.2 million in private 
investment, a $1 million increase in the local tax base, and more than 
170 new jobs. And in Buffalo, NY, a hydroponic tomato farm was built on 
a former Republic Steel site, bringing 300 new jobs to the area.
  In fact, the potential for job creation is enormous. And every 
revitalized brownfield may represent a field of dreams to an unemployed 
worker.
  Mr. President, while fostering jobs, brownfields' cleanup also means 
that dangerous contaminants are removed from our environment. The 
subsequent benefit to our--and our children's--health could be 
enormous. Furthermore, the scars of decades of neglected industrial 
waste, which disfigure our cities and suburbs, may finally be allowed 
to heal.
  Brownfield initiatives are important, because the Superfund Program 
only provides for cleaning-up those abandoned waste sites that pose the 
most serious threats. However, there are over 100,000 brownfields that 
don't fall under Superfund, because of lower levels of contamination.
  The risks posed by many of these sites may be relatively low. But 
their full economic use is being stymied, because there's no ready 
mechanism for fostering and financing cleanups--even when the property 
owner is ready, willing and eager to do so. In addition, prospective 
purchasers, developers and bankers are reluctant to invest in 
brownfields because they could be held liable for cleaning up the 
contamination.
  This is unfortunate because, as I noted these abandoned or 
underutilized sites have enormous potential for economic development.
  To unleash this potential, several States--including New Jersey--have 
developed expedited procedures to clean-up sites that do not pose a 
significant threat to public health or the environment.
  Under these cleanup programs, owners can volunteer to pay for the 
costs of remediation and State oversight. In return, they get a letter 
from the State which assures prospective buyers and lenders that the 
property has been cleaned up to the Government's satisfaction, and that 
other parties need not worry about potential liability. This so-called 
clean bill of health removes a major impediment to economic 
development, and it can help revitalize stagnant local economies.
  In New Jersey, 550 parties signed up for the State's voluntary 
cleanup program in just the first 18 months of its existence. The 
economic benefits, in terms of jobs and economic development, are 
undeniable.
  But if we are to move forward, if we are to foster economic 
revitalization and economic renewal, if we are to continue this public-
private partnership for progress, then we must remove all major 
roadblocks to brownfields' cleanup and reuse.
  My legislation addresses the major barriers preventing redevelopment 
of brownfields sites.
  This bill would provide financial assistance, in the form of grants, 
to local and State governments to evaluate brownfields sites. 
Consequently, interested parties would know what is required to clean 
the site, and what reuse would best suit the property.
  My bill would also provide grants to State and local governments to 
establish and capitalize low-interest loan programs for cleanups. These 
funds could be lent to current owners, prospective purchasers, and 
municipalities.
  The minimal seed money envisioned by this program would leverage 
substantial economic payoffs, and turn lands which may be of negative 
worth into assets for the future.
  This legislation would also place limits on the potential liability 
of innocent property buyers. So long as purchasers or landowners made 
reasonable inquires, they would be exempt from Superfund liability.
  The bill also limits the liability of banks and other lending 
institutions, which hold title merely as a result of their security 
interest in the property. As long as they did not participate in the 
management of the site, the institutions could not be held liable.
  My bill would make similar reforms in the area of fiduciary 
liability, and would limit the liability for those who merely act as 
trustees or executors.
  Cleaning up brownfields means a safer environment in the future, and 
more jobs for places that need them in the present.
  Mr. President, the introduction of this bill is not a substitute for 
a Superfund bill. Throughout this session of Congress, Senators Baucus, 
Smith, Chafee, and I have worked long and hard to try and craft a 
Superfund bill which we could all agree on and the President could sign 
into law.
  However, I am forced to acknowledge that the calendar is against us 
at this point. Consequently, I think it is important to use the time 
remaining to focus on one of the areas where there is general 
consensus--the desire to facilitate the cleanup and development of 
blighted areas, and to provide the legislative framework to make this 
possible.
  Interest in fostering the cleanup of brownfields has been bipartisan, 
and it exists in both in our own body and among our colleagues on the 
other side of the Capitol. It also has the strong backing of the EPA, 
and I want to thank Director Carol Browner for her support.
  Moreover, this bill is largely based on S. 773, which was unanimously 
reported by the Environment and Public Works Committee in the 103d 
Congress, and on the lender, prospective purchaser and innocent 
landowner provisions in S. 1285 and S. 1834, that was reported by the 
Environment and Public Works Committee last Congress.
  Mr. President, as ranking Democratic member of the Superfund 
Subcommittee of the Environment and Public Works Committee, I am 
committed to continuing the quest to reform the Superfund program. But 
I believe that we should move ahead, now, to cleanup thousands of 
priority sites not governed by the Superfund.
  This is an area where we can--and should--put aside our differences 
and work for a goal which we all embrace.
  Mr. President, our citizens want progress on both the environmental 
and economic fronts. The Brownfields legislation that I introduce today 
supports both goals. It creates a vehicle for cleanups which can help 
keep us on-board for environmental improvement and on-track for 
economic growth.
  Mr. President, I ask unanimous consent to print a copy of the bill in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S9567]]

                                S. 2028

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. FINDINGS AND PURPOSE.

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

     SEC. 3. DEFINITIONS.

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

[[Page S9568]]

     affected site, and the preferred manner of carrying out a 
     cleanup at the affected site;
       (D) the cleanup, including onsite and off-site treatment of 
     contaminants; and
       (E) monitoring ground water or other natural resources at 
     the affected site.
       (16) Owner.--The term ``owner'' has the meaning provided 
     the term in section 101(20) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(20)).
       (17) Person.--The term ``person'' has the meaning provided 
     the term in section 101(21) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(21)).
       (18) Prospective purchaser.--The term ``prospective 
     purchaser'' means a prospective purchaser of an affected 
     site.
       (19) Release--The term ``release'' has the meaning provided 
     the term in section 101(22) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(22)).
       (20) Response action.--The term ``response action'' has the 
     meaning provided the term ``response'' in section 102(25) of 
     such Act (42 U.S.C. 9601(25)).
       (21) Site characterization.--
       (A) In general.--The term ``site characterization'' means 
     an investigation that determines the nature and extent of a 
     release or potential release of a hazardous substance at a 
     site and meets the requirements referred to in 
     subparagraph (B).
       (B) Investigation.--For the purposes of this paragraph, an 
     investigation that meets the requirements of this 
     subparagraph--
       (i) shall include--
       (I) an onsite evaluation; and
       (II) sufficient testing, sampling, and other field data 
     gathering activities to accurately determine whether the site 
     is contaminated and the threats to human health and the 
     environment posed by the release of contaminants at the site; 
     and
       (ii) may also include--
       (I) review of existing information regarding the site and 
     previous uses (available at the time of the review); and
       (II) an offsite evaluation, if appropriate.
       (22) State.--The term ``State'' has the meaning provided 
     the term under section 101(27) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(27)).

       TITLE I--BROWNFIELD REMEDIATION AND ENVIRONMENTAL CLEANUP

     SEC. 101. SITE CHARACTERIZATION GRANT PROGRAM.

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

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

       (a) Establishment of Program.--The Administrator shall 
     establish a program to provide grants to be used by State or 
     local governments to capitalize loan programs for the cleanup 
     of affected sites. These loans may be provided by the State 
     or local government to finance cleanups of affected sites by 
     the State or local government, or by an owner or a 
     prospective purchaser of an affected site (including a local 
     government) at which a cleanup is being conducted or is 
     proposed to be conducted under Federal or State authority, 
     including a State voluntary clean-up program.
       (b) Scope of Program.--
       (1) In general.--
       (A) Grants.--The Administrator may award a grant to a local 
     or State government that is an eligible applicant described 
     in subsection (a)(1) that submits an application to the 
     Administrator that is approved by the Administrator. The 
     grant monies shall be used by the local or State government 
     to capitalize a loan fund to be used for cleanup of an 
     affected site or affected sites.
       (B) Grant application.--An application for a grant under 
     this section shall be in such form as the Administrator 
     determines appropriate. At a minimum, the application 
     submitted by the State or local government to establish a 
     revolving loan program shall include the following:
       (i) Insofar as the sites within their jurisdiction have 
     been identified and information as to the contaminated sites 
     is known, a description of the affected site or sites, 
     including the nature and extent of any known or suspected 
     environmental contamination at the affected site or sites.
       (ii) Identification of the criteria to be used by the local 
     or State government in providing for loans under the program. 
     This criteria shall include the financial standing of the 
     applicants for the loans, the use to which the loans will be 
     put, and the provisions to be used to ensure repayment of the 
     funds. These criteria shall also include:
       (I) A complete description of the financial standing of the 
     applicant that includes a description of the assets, cash 
     flow, and liabilities of the applicant.
       (II) A written certification that attests that the 
     applicant has attempted, and has been unable, to secure 
     financing from a private lending institution for the cleanup 
     action that is the subject of the loan application.
       (III) The proposed method, and anticipated period of time 
     required, to clean up the environmental contamination at the 
     affected site.
       (IV) An estimate of the proposed total cost of the cleanup 
     to be conducted at the site.
       (V) An analysis that demonstrates the potential of the 
     affected site for stimulating economic development on 
     completion of the cleanup of the site.

[[Page S9569]]

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

     SEC. 103. REGULATIONS.

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

     SEC. 104. ECONOMIC REDEVELOPMENT GRANTS.

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

     SEC. 105. AUTHORIZATION OF APPROPRIATIONS

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

     SEC. 106. REPORTS.

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

     SEC. 107. FUNDING.

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

     SEC. 108. STATUTORY CONSTRUCTION.

       Nothing in this title is intended to affect the liability 
     or response authorities for environmental contamination of 
     any other law (including any regulation), including--
       (1) the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.);
       (2) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);
       (3) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.);
       (4) the Toxic Substances Control Act (15 U.S.C. 2601 et 
     seq.); and
       (5) title XIV of the Public Health Service Act (commonly 
     known as the ``Safe Drinking Water Act'') (42 U.S.C. 300f et 
     seq.).

                    TITLE II--PROSPECTIVE PURCHASERS

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

       (a) Limitations on Liability.--Section 107 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607) is amended by adding 
     at the end the following new subsection:
       ``(n) Limitations on Liability for Prospective 
     Purchasers.--Notwithstanding paragraphs (1) through (4) of 
     subsection (a), a person who does not impede the performance 
     of response actions or natural resource restoration at a 
     facility shall not be liable under this Act, to the extent 
     liability is based solely on subsection (a)(1) for a release 
     or threat of release from a facility, and the person is a 
     bona fide prospective purchaser of the facility.

[[Page S9570]]

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

               TITLE III--FIDUCIARY AND LENDER LIABILITY

     SEC. 301. FIDUCIARY LIABILITY.

       (a) Definitions.--Section 101 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601) (as amended by section 201(c)) is 
     amended by adding at the end the following:
       ``(40) Fiduciary.--The term `fiduciary'--
       ``(A) means a person acting for the benefit of another 
     party as a bona fide--
       ``(i) trustee;
       ``(ii) executor;
       ``(iii) administrator of an estate;
       ``(iv) custodian;
       ``(v) guardian of estates or guardian ad litem;
       ``(vi) court-appointed receiver;
       ``(vii) conservator;
       ``(viii) committee of estates of incapacitated persons or 
     other incapacitated persons;
       ``(ix) personal representative; or
       ``(x) representative in any other capacity that the 
     Administrator, pursuant to public notice, determines to be 
     similar to those listed in clauses (i) through (ix); and
       ``(B) does not include any person who--
       ``(i) had a role in establishing a trust, estate, or 
     fiduciary relationship if such trust, estate, or fiduciary 
     relationship has no objectively reasonable or 
     substantial purpose apart from the avoidance or limitation 
     of liability under this Act; or
       ``(ii) is acting as a fiduciary with respect to a trust or 
     other fiduciary estate that--
       ``(I) was not created as part of, or to facilitate, 1 or 
     more estate plans or pursuant to the incapacity of a natural 
     person; and
       ``(II) was organized for the primary purpose of, or is 
     engaged in, activity carrying on a trade or business for 
     profit.
       ``(41) Fiduciary capacity.--The term ``fiduciary 
     capacity'', in reference to an act of a person with respect 
     to a vessel or facility, means a capacity in which the person 
     holds title to a vessel or facility, or otherwise has control 
     of or an interest in a vessel or facility, pursuant to the 
     exercise of the responsibilities of the person as a 
     fiduciary.''.
       (b) Liability of Fiduciaries.--Title I of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 127. LIABILITY OF FIDUCIARIES.

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

     SEC. 302. LIABILITY OF LENDERS.

       (a) Definition of Participation in Management.--Section 
     101(20) of the Comprehensive Environmental Response, 
     Liability, and Compensation Act of 1980 (42 U.S.C. 9601(20)) 
     is amended--
       (1) in subparagraph (A), by striking the second sentence;
       (2) by amending paragraph (A)(iii) to read as follows:

[[Page S9571]]

       ``(iii) any person who owned, operated or otherwise 
     controlled activities at a vessel or facility immediately 
     before the United States (including any department, agency or 
     instrumentality), a unit of State or local government, or 
     their agents or appointees, acquired title or control of such 
     vessel or facility in any of the following ways:
       ``(I) through bankruptcy, tax delinquency, abandonment, or 
     escheat;
       ``(II) through foreclosure that is connected with the 
     provision of loans, discounts, advances, guarantees, 
     insurance, or other financial assistance, if the United 
     States or unit of State or local government meets the 
     requirements of paragraph (F)(ii) (I) and (II) of this 
     section;
       ``(III) through the exercise of statutory receivership or 
     conservatorship authority, including any liquidating or 
     winding up the affairs of any person or any subsidiary 
     thereof, if the governmental entity did not participate in 
     management of the vessel or facility prior to acquiring title 
     or control and meets the requirements of paragraph 
     (F)(ii)(II) of this section;
       ``(IV) through the exercise of any seizure or forfeiture 
     authority;
       ``(V) in any civil, criminal, or administrative enforcement 
     proceeding, whether by order or settlement, in which an 
     interest in a vessel or facility is conveyed to satisfy a 
     claim of the governmental entity, and the governmental entity 
     meets the requirements of this section; and
       ``(VI) temporarily in connection with a law enforcement 
     operation.'';
       (3) by amending paragraph (D) to read as follows:
       ``(D)(i) The term `owner or operator' does not include the 
     United States (including any department, agency, or 
     instrumentality) or a unit of State or local government that 
     acquires title or control of a vessel or facility in a manner 
     described in paragraph (A)(iii), or in any other 
     circumstances in which the government involuntary acquires 
     title by virtue of its function as sovereign.
       ``(ii) Notwithstanding subparagraph (i), if the United 
     States or a unit of State or a unit of State or local 
     government caused or contributed to the release or threatened 
     release of a hazardous substance from the facility, this Act 
     (including section 107) shall apply in the same manner and to 
     the same extent, procedurally and substantively, as the Act 
     does to any non-governmental entity.''; and
       (4) by adding at the end the following:
       ``(E) Exclusion of persons not participants in 
     management.--
       ``(i) Indicia of ownership to protect security interest.--
     The term `owner or operator' does not include--
       ``(I) a person, including a successor or assign of such 
     person, who, without participating in the management of a 
     vessel or facility, holds indicia of ownership primarily to 
     protect such person's security interest in the vessel or 
     facility; or
       ``(II) a successor or assign of a person described in 
     subclause (I).
       ``(ii) Nonparticipation in management prior to 
     foreclosure.--The term `owner or operator' does not include a 
     person that forecloses on a vessel or a facility even if such 
     person forecloses on such vessel or facility, sells, re-
     leases (in the case of a lease finance transaction), or 
     liquidates the vessel or facility, maintains business 
     activities, winds up operations, or undertakes any response 
     action under section 107(d)(1) or under the direction of an 
     on-scene coordinator, with respect to the vessel or facility, 
     or takes other measures to preserve, protect, or prepare the 
     vessel or facility prior to sale or disposition, if--
       ``(I) the person did not participate in management prior to 
     foreclosure; and
       ``(II) such person seeks to sell, re-lease (in the case of 
     a lease finance transaction), or otherwise divest such vessel 
     or facility at the earliest practical, commercially 
     reasonable time, on commercially reasonable terms, taking 
     into account market conditions and legal and regulatory 
     requirements.
       ``(F) Participation in management.--For purposes of 
     subparagraph (E)--
       ``(i) the term `participate in management' means actually 
     participating in the management or operational affairs of the 
     vessel or facility, and does not include merely having the 
     capacity to influence, or the unexercised right to control, 
     vessel or facility operations;
       (ii) a person shall be considered to `participate in 
     management' only if, while the borrower is still in 
     possession of the vessel or facility encumbered by the 
     security interest, such person--
       ``(I) exercises decisionmaking control over the 
     environmental compliance of a borrower, such that the person 
     has undertaken responsibility for the hazardous substance 
     handling or disposal practices of the borrower; or
       ``(II) exercises control at a level comparable to that of a 
     manager of the enterprise of the borrower, such that the 
     person has assumed or manifested responsibility for the 
     overall management of the enterprise encompassing day-to-day 
     decisionmaking with respect to environmental compliance, or 
     with respect to all or substantially all of the operational 
     aspects (as distinguished from financial or administrative 
     aspects) of the enterprise, other than environmental 
     compliance;
       ``(iii) the term `participate in management' does not 
     include conducting an act or failing to act prior to the time 
     that a security interest is created in a vessel or facility; 
     and
       ``(iv) the term `participate in management' does not 
     include-
       ``(I) holding such a security interest or, prior to 
     foreclosure, abandoning or releasing such a security 
     interest;
       ``(II) including in the terms of an extension of credit, or 
     in a contract or security agreement relating to such an 
     extension, covenant, warranty, or any other term or condition 
     that relates to environmental compliance;
       ``(III) monitoring or enforcing the term or condition of 
     the extension of credit or security interest;
       ``(IV) monitoring or undertaking 1 or more inspections of 
     the vessel or facility;
       ``(V) requiring the borrower to undertake response action 
     or other lawful means of addressing the release or threatened 
     release of a hazardous substance in connection with the 
     vessel or facility prior to, during, or upon the expiration 
     of the term of the extension of credit;
       ``(VI) providing financial or other advice or counseling in 
     an effort to mitigate, prevent, or cure default or diminution 
     in the value of the vessel or facility;
       ``(VII) restructuring, renegotiating, or otherwise agreeing 
     to alter a term or condition of the extension of credit or 
     security interest;
       ``(VIII) exercising other remedies that may be available 
     under applicable law for the breach of any term or condition 
     of the extension of credit or security agreement; or
       ``(IX) conducting a response action under section 107(d)(1) 
     or under the direction of an on-scene coordinator,

     if such actions do not rise to the level of participation in 
     management, as defined in clauses (i) and (ii).
       ``(G) Other terms.--As used in subparagraph (E), 
     subparagraph (F), and this subparagraph, the following 
     definitions shall apply:
       ``(i) Borrower.--The term ``borrower'' means a person whose 
     vessel or facility is encumbered by a security interest.
       ``(ii) Extension of credit.--The term `extension of credit' 
     includes a lease finance transaction--
       ``(I) in which the lessor does not initially select the 
     leased vessel or facility and does not during the lease term 
     control the daily operation or maintenance of the vessel or 
     facility; or
       ``(II) that conforms with regulations issued by the 
     appropriate Federal banking agency or the appropriate State 
     bank supervisor (as those terms are defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813)) or with 
     regulations issued by the National Credit Union 
     Administration Board, as appropriate.
       ``(iii) Financial or administrative aspect.--The term 
     `financial or administrative aspect' includes a function such 
     as a function of a credit manager, accounts payable officer, 
     accounts receivable officer, personnel manager, comptroller, 
     or chief financial officer, or any similar function.
       ``(iv) Foreclosure; foreclose.--The term `foreclosure' and 
     `foreclose' mean, respectively, acquiring, and to acquire 
     from a nonaffiliated party for subsequent disposition, a 
     vessel or facility through--
       ``(I) purchase at sale under a judgment or decree, a power 
     of sale, a nonjudicial foreclosure sale, or from a trustee, 
     deed in lieu of foreclosure, or similar conveyance, or 
     through repossession, if such vessel or facility was security 
     for an extension of credit previously contracted;
       ``(II) conveyance pursuant to an extension of credit 
     previously contracted, including the termination of a lease 
     agreement; or
       ``(III) any other formal or informal manner by which the 
     person acquires, for subsequent disposition, possession of 
     collateral in order to protect the security interest of the 
     person.
       ``(v) Operational aspect.--The term `operational aspect' 
     includes a function such as a function of a facility or plant 
     manager, operations manager, chief operating officer, or 
     chief executive officer.
       ``(vi) Security interest.--The term `security interest' 
     includes a right under a mortgage, deed of trust, assignment, 
     judgment lien, pledge, security agreement, factoring 
     agreement, or lease, or any other right accruing to a person 
     to secure the repayment of money, the performance of a duty, 
     or some other obligation.''.
       (b) Effective Date.--The amendments made by this section 
     shall be applicable with respect to any claim that has not 
     been finally adjudicated as of the date of enactment of this 
     Act.
       (c) Lender Liability Rule.--(1) Effective on the date of 
     enactment of this section, the final rule issued by the 
     Administrator of the Environmental Protection Agency on April 
     29, 1992 (57 Stat. Fed. Reg. 18344), shall be deemed to have 
     been validly issued pursuant to the authority of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980, and to have been effective according 
     to the final rule's terms. No additional administrative or 
     judicial proceedings shall be necessary with respect to such 
     final rule.
       (2) Notwithstanding section 113(a) of the Comprehensive 
     Environmental Response, Compensation and Liability Act of 
     1980, no court shall have jurisdiction to review the final 
     rule issued by the Administrator of the Environmental 
     Protection Agency on April 29, 1992 (57 Fed. Reg. 18344).
       (3) Nothing in this subsection shall be construed to limit 
     the authority of the President or his delegate to amend the 
     final rule issued by the Administrator of the Environmental 
     Protection Agency on April 29, 1992

[[Page S9572]]

     (57 Fed. Reg. 18344), in accordance with applicable 
     provisions of law.
       (d) Regulatory Authority.--
       (1) In general.--The Administrator may--
       (A) issue such regulations as the Administrator deems 
     necessary to carry out the amendments made by this section; 
     and
       (B) delegate and assign any duties or powers imposed upon 
     or assigned to the Administrator by the amendments made by 
     this section, including the authority to issue regulations.
       (2) Authority to clarify.--The authority under paragraph 
     (1) includes authority to clarify or interpret all terms, 
     including those used in this section, and to implement any 
     provision of the amendments made by this section.

                     TITLE IV--INNOCENT LANDOWNERS

     SEC. 401. INNOCENT LANDOWNERS.

       (a) Environmental Site Assessment.--Section 107 (as amended 
     by section 201(b)) is amended by adding at the end the 
     following new subsection:
       ``(p) Innocent Landowners.--
       ``(1) Conduct of environmental assessment.--A person who 
     has acquired real property shall have made all appropriate 
     inquiry within the meaning of subparagraph (B) of section 
     101(35) if the person establishes that, within 180 days prior 
     to the time of acquisition, an environmental site assessment 
     of the real property was conducted which meets the 
     requirements of paragraph (2).
       ``(2) Definition of environmental site assessment.--For 
     purposes of this subsection, the term `environmental site 
     assessment' means an assessment conducted in accordance with 
     the standards set forth in the American Society for Testing 
     and Materials (ASTM) Standard E1527-94, titled `Standard 
     Practice for Environmental Site Assessments: Phase I 
     Environmental Site Assessment Process' or with alternative 
     standards issued by rule by the President or promulgated or 
     developed by others and designated by rule by the President. 
     Before issuing or designating alternative standards, the 
     President shall first conduct a study of commercial and 
     industrial practices concerning environmental site 
     assessments in the transfer of real property in the United 
     States. Any such standards issued or designated by the 
     President shall also be deemed to constitute commercially 
     reasonable and generally accepted standards and practices for 
     purposes of this paragraph. In issuing or designating any 
     such standards, the President shall consider requirements 
     governing each of the following:
       ``(A) Interviews or owners, operators, and occupants of the 
     property to determine information regarding the potential for 
     contamination.
       ``(B) Review of historical sources as necessary to 
     determine previous uses and occupancies of the property since 
     the property was first developed. For purposes of this 
     subclause, the term `historical sources' means any of the 
     following, if they are reasonably ascertainable: recorded 
     chain of title documents regarding the real property, 
     including all deeds, easements, leases, restrictions, and 
     covenants, aerial photographs, fire insurance maps, property 
     tax files, USGS 7.5 minutes topographic maps, local street 
     directories, building department records, zoning/land use 
     records, and any other sources that identify past uses and 
     occupancies of the property.
       ``(C) Determination of the existence of recorded 
     environmental cleanup liens against the real property which 
     have arisen pursuant to Federal, State, or local statutes.
       ``(D) Review of reasonably ascertainable Federal, State, 
     and local government records of sites or facilities that are 
     likely to cause or contribute to contamination at the real 
     property, including, as appropriate, investigation reports 
     for such sites or facilities; records of activities likely to 
     cause or contribute to contamination at the real property, 
     including landfill and other disposal location records, 
     underground storage tank records, hazardous waste handler and 
     generator records and spill reporting records; and such other 
     reasonably ascertainable Federal, State, and local government 
     environmental records which could reflect incidents or 
     activities which are likely to cause or contribute to 
     contamination at the real property.
       ``(E) A visual site inspection of the real property and all 
     facilities and improvements on the real property and a visual 
     inspection of immediately adjacent properties, including an 
     investigation of any hazardous substance use, storage, 
     treatment, and disposal practices on the property.
       ``(F) Any specialized knowledge or experience on the part 
     of the defendant.
       ``(G) The relationship of the purchase price to the value 
     of the property if uncontaminated.
       ``(H) Commonly known or reasonably ascertainable 
     information about the property.
       ``(I) The obviousness of the presence or likely presence of 
     contamination at the property, and the ability to detect such 
     contamination by appropriate investigation.

     A record shall be considered to be `reasonably ascertainable' 
     for purposes of this paragraph if a copy or reasonable 
     facsimile of the record is publicly available by request 
     (within reasonable time and cost constraints) and the record 
     is practically reviewable.
       ``(3) Appropriate inquiry.--A person shall not be treated 
     as having made all appropriate inquiry under paragraph (1) 
     unless--
       ``(A) the person has maintained a compilation of the 
     information reviewed and gathered in the course of the 
     environmental site assessment;
       ``(B) the person exercised appropriate care with respect to 
     hazardous substances found at the facility by taking 
     reasonable steps to stop on-going releases, prevent 
     threatened future releases of hazardous substances, and 
     prevent or limit human or natural resource exposure to 
     hazardous substances previously released into the 
     environment; and
       ``(C) the person provides full cooperation, assistance, and 
     facility access to persons authorized to conduct response 
     actions at the facility, including the cooperation and access 
     necessary for the installation, integrity, operation, and 
     maintenance of any complete or partial response action at the 
     facility.
       ``(4) Definition of contamination.--For the purposes of 
     this subsection and section 101(35), the term `contamination' 
     means an existing release, a past release, or the threat of a 
     release of a hazardous substance.''.
       (b) Section 101(35) of the Comprehensive Environmental 
     Response, Compensation, and Liability act of 1980 (42 U.S.C. 
     9601(35)) is by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) Knowledge of inquiry requirement.--
       ``(i) In general.--To establish that the defendant had no 
     reason to know, as provided in subparagraph (A)(i), 
     the defendant must have undertaken, at the time of the 
     acquisition, all appropriate inquiry (in accordance with 
     section 107(p)) into the previous ownership and uses of 
     the facility and its real property in accordance with 
     generally accepted good commercial and customary standards 
     and practices. For the purposes of the preceding sentence 
     and until the Administrator issues or designates standards 
     and practices as provided in clause (ii), the court shall 
     take into account any specialized knowledge or experience 
     on the part of the defendant, the relationship of the 
     purchase price to the value of the property if 
     uncontaminated, commonly known or reasonably ascertainable 
     information about the property, the obviousness of the 
     presence or likely presence of contamination at the 
     property, and the ability to detect such contamination by 
     appropriate investigation.
       ``(ii) Rule.--Within 1 year after the date of enactment of 
     this Act, the Administrator shall, by rule, issue standards 
     and practices or designate standards and practices 
     promulgated or developed by others, that satisfy the 
     requirements of this subparagraph. In issuing or designating 
     such standards and practices, the Administrator shall 
     consider each of the following:
       ``(I) Conduct of an inquiry by an environmental 
     professional.
       ``(II) Inclusion of interviews with past and present 
     owners, operators, and occupants of the facility and its real 
     property for the purpose of gathering information regarding 
     the potential for contamination at the facility and its real 
     property.
       ``(III) Inclusion of a review of historical sources, such 
     as chain of title documents, aerial photographs, building 
     department records, and land use records, to determine 
     previous uses and occupancies of the real property since it 
     was first developed.
       ``(IV) Inclusion of a search for recorded environmental 
     cleanup liens, filed under Federal, State, or local law, 
     against the facility or its real property.
       ``(V) Inclusion of a review of Federal, State, and local 
     government records (such as waste disposal records), 
     underground storage tank records, and hazardous waste 
     handling, generation, treatment, disposal, and spill records, 
     concerning contamination at or near the facility or its real 
     property.
       ``(VI) Inclusion of a visual inspection of the facility and 
     its real property and of adjoining properties.
       ``(VII) Any specialized knowledge or experience on the part 
     of the defendant.
       ``(VIII) The relationship of the purchase price to the 
     value of the property if uncontaminated.
       ``(IX) Commonly known or reasonably ascertainable 
     information about the property.
       ``(X) The obviousness of the presence or likely presence of 
     contamination at the property, and the ability to detect such 
     contamination by appropriate investigation.
       ``(iii) Site inspection and title search.--In the case of 
     property for residential use or other similar use purchased 
     by a nongovernmental or noncommercial entity, a site 
     inspection and title search that reveal no basis for further 
     investigation satisfy the requirements of this 
     subparagraph.''; and
       (c) Regulatory Authority.--
       (1) In general.--The Administrator may--
       (A) issue such regulations as the Administrator deems 
     necessary to carry out the amendments made by this section; 
     and
       (B) delegate and assign any duties or powers imposed upon 
     or assigned to the Administrator by the amendments made by 
     this section, including the authority to issue regulations.
       (2) Authority to clarify.--The authority under paragraph 
     (1) includes authority to clarify or interpret all terms, 
     including those used in this section, and to implement any 
     provision of the amendments made by this section.
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