[Congressional Record Volume 145, Number 74 (Thursday, May 20, 1999)]
[Senate]
[Pages S5742-S5756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAFEE (for himself, Mr. Smith of New Hampshire, and Mr. 
        Lott):
  S. 1090. A bill to reauthorize and amend the Comprehensive 
Environmental Response, Liability, and Compensation Act of 1980; to the 
Committee on Environment and Public Works.


              the superfund program completion act of 1999

  Mr. CHAFEE. Mr. President, I rise today to introduce the Superfund 
Program Completion Act of 1999. This bill represents our efforts to 
focus on the areas where bipartisan consensus is achievable this year. 
The bill provides liability relief for many parties trapped in 
Superfund--in fact, it exempts or limits the liability of the vast bulk 
of all parties involved in Superfund litigation. The bill includes very 
strong provisions to facilitate the redevelopment of Brownfields, and 
it starts to wind down the Federal role in site cleanup, while 
enhancing the role of the states.
  The bill includes many provisions that have enjoyed widespread 
bipartisan support in the Senate. The Brownfields title will provide 
$100 million in grants for state, tribal and local governments to 
identify, assess and redevelop Brownfields sites. It protects 
prospective purchasers of contaminated sites, innocent owners of 
properties adjacent to the source of contamination, and innocent 
property owners who exercised due diligence upon purchase. These 
provisions have been included in past bills supported by Democrats and 
Republicans over the last six years.
  The bill exempts a number of parties from Superfund liability and 
incorporates provisions of S. 2180, the Superfund Recycling Equity Act 
of 1998, cosponsored last year by Senators Lott and Daschle, as well as 
64 other members of the Senate. Our bill exempts small businesses, 
contributors of very small amounts of hazardous waste, and contributors 
of small amounts of municipal solid waste. The bill limits the 
liability of larger generators or transporters of municipal solid 
waste, as well as owners or operators of co-disposal landfills where 
municipal solid waste is disposed. The bill limits the liability of so-
called de minimis parties--generally one percent contributors or less--
as well as municipalities and small businesses with a limited ability 
to pay.
  It is well known that Superfund liability--retroactive, strict, joint 
and several liability--often can be terribly unfair. It does not make 
any sense to make Superfund liability even more unfair to the parties 
who do not receive liability relief in this bill by merely shifting the 
share of the exempt or limited parties onto those that remain liable. 
This bill does not do that. Instead, where we grant liability relief, 
we direct EPA to use the taxes already collected from industry to pay 
the cost of the exemptions. This seems only fair.

  The bill also requires EPA to perform an impartial fair-share 
allocation at Superfund NPL sites and to give all parties an 
opportunity to settle for their allocated amount. In performing the 
allocation, EPA is directed to use the factors first proposed by Vice 
President Gore when he was serving in the House. EPA is given 
discretion to design the process, and parties that do not participate 
or settle remain liable to Superfund's underlying liability provisions, 
which remain unchanged except for those fortunate parties provided the 
new protections noted above.
  As EPA proudly boasts, cleanup is complete or underway at over 90 
percent of the sites on the current NPL. While it is cleaning up the 
sites at a rate of 85 per year, it has listed only an average of about 
26 per year. Last year, the General Accounting Office surveyed the 
states and EPA about the approximately 3,000 sites identified as

[[Page S5743]]

possible National Priority List sites, but not yet listed. Only 232 of 
these sites were identified by either EPA, a state, or both, as likely 
to be listed on the NPL. Clearly, this program is much closer to the 
end than in the beginning.
  This bill requires EPA to plan how it will proceed at those 3,000 
sites still awaiting a decision regarding listing. Everyone knows that 
the vast bulk of these sites will not be listed on the Superfund List, 
they will be cleaned up by the states, as the GAO report confirms. 
Under our bill, new listings on the National Priority List must be 
requested by the Governor of the affected state, and EPA is limited to 
listing 30 sites per year.
  The bill provides finality at sites cleaned up in state cleanup 
programs unless a state asks for help, fails to take action, or a true 
emergency is present. This will give greater confidence to prospective 
developers that state cleanup decisions will not be second-guessed by 
EPA. The bill strengthens state programs and starts to bring Superfund 
to an end.
  The bill makes EPA's authorization and appropriation process more 
transparent. There are separate line items for EPA's cleanup program--
the heart of the program--and all other activities such as Brownfields, 
support for research and development, Department of Justice 
enforcement, et cetera. No longer will increases in popular programs 
such as Brownfields come at the expense of the cleanup program. 
Authorization levels for the cleanup recognize that the program's 
workload is decreasing and will ramp down over time.
  The bill allows the program to be funded from either general revenues 
or the Trust Fund. It is my view that the Superfund taxes should not be 
reimposed, and I will strongly oppose their reimposition absent 
comprehensive Superfund reform that includes needed improvements to 
provisions governing natural resource damages, liability, and the 
cleanup process. To the extent that EPA improves its cost recovery 
performance and the Trust Fund balance exceeds levels needed to fund 
the liability relief provided in this bill, then that balance, instead 
of general revenues, can be used for Superfund cleanup.
  It is possible that EPA can recover enough past cleanup expenditures 
to pay for the full 5-year reauthorization program. Since the program's 
inception, EPA has spent approximately $15.9 billion on cleanup, the 
vast majority of it from industry-paid Superfund taxes deposited in the 
Trust Fund. Unfortunately, EPA has only recovered $2.4 billion of this 
total. Even discounting nearly $6.9 billion in expenditures that have 
been written-off by EPA or are no longer considered recoverable, there 
is approximately $6.6 billion that EPA could recover for the Trust 
Fund.

  It is well known that Senator Smith and I have long advocated 
comprehensive reform of the Superfund program. We have not abandoned 
that goal. However, in many ways, the bill we introduce today is more 
far-reaching than our efforts in the last two Congresses. Except for 
the liability provisions described above, the major focus of this bill 
is how to address sites not yet in the federal Superfund program. The 
Superfund Program Completion Act addresses the future of the Superfund 
program.
  The major reforms included in our previous efforts are not a part of 
the new bill. This bill does not address liability for damages to 
natural resources. The bill does not include liability relief for large 
responsible parties, such as federal funding of the fair shares 
attributed to bankrupt, defunct and insolvent parties. The bill does 
not make changes to Superfund's provisions regarding the conduct of 
cleanups.
  I still believe reforms are needed for natural resource damages, 
liability for large responsible parties, and the cleanup process. 
Unfortunately, the administration no longer supports legislative reform 
in these areas. Even in previous years, when the administration claimed 
to support such reforms, agreement was not possible. Given the remote 
prospects for concurrence on these issues, Senator Smith and I decided 
to set the issues aside for now and move forward with an agenda that we 
believe can generate bipartisan support.
  I cannot understand why anyone would fail to support this bill. It 
will accelerate Brownfields redevelopment. It will strengthen state 
programs in anticipation of the day we all know is coming--the day when 
the Superfund program becomes the small emergency program that was 
originally intended. It limits or eliminates the liability of many 
parties who were caught in Superfund's incredibly broad liability net, 
and it does so in a manner that is fair to those that are left. It does 
not undermine the so-called ``polluter pays'' principle, but in fact 
strengthens it by creating an incentive for EPA to improve its cost 
recovery performance.
  The committee will move forward quickly on this bill. The committee 
will hold hearings on the bill next week. We will work through the 
Memorial Day recess to address Members' concerns, then hold a markup 
within 10 days of returning from the recess. The bill will be ready for 
floor action prior to the July Fourth recess.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1090

       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 
     Program Completion Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                  TITLE I--BROWNFIELDS REVITALIZATION

Sec. 101. Brownfields.
Sec. 102. Contiguous properties.
Sec. 103. Prospective purchasers and windfall liens.
Sec. 104. Safe harbor innocent landholders.

                   TITLE II--STATE RESPONSE PROGRAMS

Sec. 201. State response programs.
Sec. 202. National priorities list completion.
Sec. 203. Federal emergency removal authority.
Sec. 204. State cost share.

      TITLE III--FAIR SHARE LIABILITY ALLOCATIONS AND PROTECTIONS

Sec. 301. Liability exemptions and limitations.
Sec. 302. Expedited settlement for certain parties.
Sec. 303. Fair share settlements and statutory orphan shares.

                           TITLE IV--FUNDING

Sec. 401. Uses of Hazardous Substance Superfund.

                  TITLE I--BROWNFIELDS REVITALIZATION

     SEC. 101. BROWNFIELDS.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 127. BROWNFIELDS.

       ``(a) Definitions.--In this section:
       ``(1) Brownfield facility.--
       ``(A) In general.--The term `brownfield facility' means 
     real property, the expansion or redevelopment of which is 
     complicated by the presence or potential presence of a 
     hazardous substance.
       ``(B) Exclusions.--The term `brownfield facility' does not 
     include--
       ``(i) any portion of real property that, as of the date of 
     submission of an application for assistance under this 
     section, is the subject of an ongoing removal under title I;
       ``(ii) any portion of real property that has been listed on 
     the National Priorities List or is proposed for listing as of 
     the date of the submission of an application for assistance 
     under this section;
       ``(iii) any portion of real property with respect to which 
     cleanup work is proceeding in substantial compliance with the 
     requirements of an administrative order on consent, or 
     judicial consent decree that has been entered into, or a 
     permit issued by, the United States or a duly authorized 
     State under this Act, the Solid Waste Disposal Act (42 U.S.C. 
     6901 et seq.), section 311 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1321), the Toxic Substances Control 
     Act (15 U.S.C. 2601 et seq.), or the Safe Drinking Water Act 
     (42 U.S.C. 300f et seq.);
       ``(iv) a land disposal unit with respect to which--

       ``(I) a closure notification under subtitle C of the Solid 
     Waste Disposal Act (42 U.S.C. 6921 et seq.) has been 
     submitted; and
       ``(II) closure requirements have been specified in a 
     closure plan or permit;

       ``(v) a facility that is owned or operated by a department, 
     agency, or instrumentality of the United States; or
       ``(vi) a portion of a facility, for which portion, 
     assistance for response activity has been obtained under 
     subtitle I of the Solid Waste Disposal Act (42 U.S.C. 6991 et 
     seq.) from the Leaking Underground Storage Tank Trust Fund 
     established under section 9508 of the Internal Revenue Code 
     of 1986.
       ``(C) Facilities other than brownfield facilities.--That a 
     facility may not be a brownfield facility within the meaning 
     of

[[Page S5744]]

     subparagraph (A) has no effect on the eligibility of the 
     facility for assistance under any provision of Federal law 
     other than this section.
       ``(2) Eligible entity.--
       ``(A) In general.--The term `eligible entity' means--
       ``(i) a general purpose unit of local government;
       ``(ii) a land clearance authority or other quasi-
     governmental entity that operates under the supervision and 
     control of or as an agent of a general purpose unit of local 
     government;
       ``(iii) a government entity created by a State legislature;
       ``(iv) a regional council or group of general purpose units 
     of local government;
       ``(v) a redevelopment agency that is chartered or otherwise 
     sanctioned by a State;
       ``(vi) a State; and
       ``(vii) an Indian Tribe.
       ``(B) Exclusion.--The term `eligible entity' does not 
     include any entity that is not in substantial compliance with 
     the requirements of an administrative order on consent, 
     judicial consent decree that has been entered into, or a 
     permit issued by, the United States or a duly authorized 
     State under this Act, the Solid Waste Disposal Act (42 U.S.C. 
     6901 et seq.), the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.), the Toxic Substances Control Act (15 
     U.S.C. 2601 et seq.), or the Safe Drinking Water Act (42 
     U.S.C. 300f et seq.) with respect to any portion of real 
     property that is the subject of the administrative order on 
     consent, judicial consent decree, or permit.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(b) Brownfield Site Characterization and Assessment Grant 
     Program.--
       ``(1) Establishment of program.--The Administrator shall 
     establish a program to provide grants for the site 
     characterization and assessment of brownfield facilities.
       ``(2) Assistance for site characterization and assessment 
     and response actions.--
       ``(A) In general.--On approval of an application made by an 
     eligible entity, the Administrator may make grants to the 
     eligible entity to be used for the site characterization and 
     assessment of 1 or more brownfield facilities.
       ``(B) Site characterization and assessment.--A site 
     characterization and assessment carried out with the use of a 
     grant under subparagraph (A)--
       ``(i) shall be performed in accordance with section 
     101(35)(B); and
       ``(ii) may include a process to identify and inventory 
     potential brownfield facilities.
       ``(c) Brownfield Remediation Grant Program.--
       ``(1) Establishment of program.--In consultation with the 
     Secretary, the Administrator shall establish a program to 
     provide grants to be used for response actions (excluding 
     site characterization and assessment) at 1 or more brownfield 
     facilities.
       ``(2) Assistance for response actions.--On approval of an 
     application made by an eligible entity, the Administrator, in 
     consultation with the Secretary, may make grants to the 
     eligible entity to be used for response actions (excluding 
     site characterization and assessment) at 1 or more brownfield 
     facilities.
       ``(d) General Provisions.--
       ``(1) Maximum grant amount.--
       ``(A) In general.--The total of all grants under 
     subsections (b) and (c) shall not exceed, with respect to any 
     individual brownfield facility covered by the grants, 
     $350,000.
       ``(B) Waiver.--The Administrator may waive the $350,000 
     limitation under subparagraph (A) based on the anticipated 
     level of contamination, size, or status of ownership of the 
     facility.
       ``(2) Prohibition.--
       ``(A) In general.--No part of a grant under this section 
     may be used for payment of penalties, fines, or 
     administrative costs.
       ``(B) Exclusions.--For the purposes of subparagraph (A), 
     the term `administrative cost' does not include the cost of--
       ``(i) investigation and identification of the extent of 
     contamination;
       ``(ii) design and performance of a response action; or
       ``(iii) monitoring of natural resources.
       ``(3) Audits.--The Inspector General of the Environmental 
     Protection Agency shall conduct such reviews or audits of 
     grants under this section as the Inspector General considers 
     necessary to carry out the objectives of this section. Audits 
     shall be conducted in accordance with the auditing procedures 
     of the General Accounting Office, including chapter 75 of 
     title 31, United States Code.
       ``(4) Leveraging.--An eligible entity that receives a grant 
     under this section may use the funds for part of a project at 
     a brownfield facility for which funding is received from 
     other sources, but the grant shall be used only for the 
     purposes described in subsection (b) or (c).
       ``(5) Agreements.--Each grant made under this section shall 
     be subject to an agreement that--
       ``(A) requires the eligible entity to comply with all 
     applicable State laws (including regulations);
       ``(B) requires that the eligible entity shall use the grant 
     exclusively for purposes specified in subsection (b) or (c);
       ``(C) in the case of an application by an eligible entity 
     under subsection (c), requires payment by the eligible entity 
     of a matching share (which may be in the form of a 
     contribution of labor, material, or services) of at least 20 
     percent of the costs of the response action for which the 
     grant is made, is from non-Federal sources of funding.
       ``(D) contains such other terms and conditions as the 
     Administrator determines to be necessary to carry out this 
     section.
       ``(e) Grant Applications.--
       ``(1) Submission.--
       ``(A) In general.--Any eligible entity may submit an 
     application to the Administrator, through a regional office 
     of the Environmental Protection Agency and in such form as 
     the Administrator may require, for a grant under this section 
     for 1 or more brownfield facilities.
       ``(B) Coordination.--In developing application 
     requirements, the Administrator shall coordinate with the 
     Secretary and other Federal agencies and departments, such 
     that eligible entities under this section are made aware of 
     other available Federal resources.
       ``(C) Guidance.--The Administrator shall publish guidance 
     to assist eligible entities in obtaining grants under this 
     section.
       ``(2) Approval.--The Administrator, in consultation with 
     the Secretary, shall make an annual evaluation of each 
     application received during the prior fiscal year and make 
     grants under this section to eligible entities that submit 
     applications during the prior year and that the 
     Administrator, in consultation with the Secretary, determines 
     have the highest rankings under the ranking criteria 
     established under paragraph (3).
       ``(3) Ranking criteria.--The Administrator, in consultation 
     with the Secretary, shall establish a system for ranking 
     grant applications that includes the following criteria:
       ``(A) The extent to which a grant will stimulate the 
     availability of other funds for environmental remediation and 
     subsequent redevelopment of the area in which the brownfield 
     facilities are located.
       ``(B) The potential of the development plan for the area in 
     which the brownfield facilities are located to stimulate 
     economic development of the area on completion of the 
     cleanup, such as the following:
       ``(i) The relative increase in the estimated fair market 
     value of the area as a result of any necessary response 
     action.
       ``(ii) The demonstration by applicants of the intent and 
     ability to create new or expand existing business, 
     employment, recreation, or conservation opportunities on 
     completion of any necessary response action.
       ``(iii) If commercial redevelopment is planned, the 
     estimated additional full-time employment opportunities and 
     tax revenues expected to be generated by economic 
     redevelopment in the area in which a brownfield facility is 
     located.
       ``(iv) The estimated extent to which a grant would 
     facilitate the identification of or facilitate a reduction of 
     health and environmental risks.
       ``(v) The financial involvement of the State and local 
     government in any response action planned for a brownfield 
     facility and the extent to which the response action and the 
     proposed redevelopment is consistent with any applicable 
     State or local community economic development plan.
       ``(vi) The extent to which the site characterization and 
     assessment or response action and subsequent development of a 
     brownfield facility involves the active participation and 
     support of the local community.
       ``(vii) Such other factors as the Administrator considers 
     appropriate to carry out the purposes of this section.
       ``(C) The extent to which a grant will enable the creation 
     of or addition to parks, greenways, or other recreational 
     property.
       ``(D) The extent to which a grant will meet the needs of a 
     community that has an inability to draw on other sources of 
     funding for environmental remediation and subsequent 
     redevelopment of the area in which a brownfield facility is 
     located because of the small population or low income of the 
     community.''.

     SEC. 102. CONTIGUOUS PROPERTIES.

       (a) In General.--Section 107 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607(a)) is amended by adding at the end the 
     following:
       ``(o) Contiguous Properties.--
       ``(1) Not considered to be an owner or operator.--
       ``(A) In general.--A person that owns or operates real 
     property that is contiguous to or otherwise similarly 
     situated with respect to real property on which there has 
     been a release or threatened release of a hazardous substance 
     and that is or may be contaminated by the release shall not 
     be considered to be an owner or operator of a vessel or 
     facility under paragraph (1) or (2) of subsection (a) solely 
     by reason of the contamination if--
       ``(i) the person did not cause, contribute, or consent to 
     the release or threatened release;
       ``(ii) the person is not affiliated through any familial or 
     corporate relationship with any person that is or was a party 
     potentially responsible for response costs at the facility; 
     and
       ``(iii) the person exercised appropriate care with respect 
     to each hazardous substance found at the facility by taking 
     reasonable steps to stop any continuing release, prevent any 
     threatened future release and prevent or limit human or 
     natural resource exposure to any previously released 
     hazardous substance.
       ``(B) Ground water.--With respect to hazardous substances 
     in ground water beneath a

[[Page S5745]]

     person's property solely as a result of subsurface migration 
     in an aquifer from a source or sources outside the property, 
     appropriate care shall not require the person to conduct 
     ground water investigations or to install ground water 
     remediation systems.
       ``(2) Cooperation, assistance, and access.--A party 
     described in paragraph (1) may be considered an owner or 
     operator of a vessel or facility under paragraph (1) or (2) 
     of subsection (a) if the party has failed to substantially 
     comply with the requirement stated in section 122(p)(2)(H) 
     with respect to the facility.
       ``(3) Assurances.--The Administrator may--
       ``(A) issue an assurance that no enforcement action under 
     this Act will be initiated against a person described in 
     paragraph (1); and
       ``(B) grant a person described in paragraph (1) protection 
     against a cost recovery or contribution action under section 
     113(f).''.
       (b) National Priorities List.--
       (1) In general.--Section 105 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9605) is amended--
       (A) in subsection (a)(8)--
       (i) in subparagraph (B), by inserting ``and'' after the 
     semicolon at the end; and
       (ii) by adding at the end the following:
       ``(C) provision that in listing a facility on the National 
     Priorities List, the Administrator shall not include any 
     parcel of real property at which no release has actually 
     occurred, but to which a released hazardous substance, 
     pollutant, or contaminant has migrated in ground water that 
     has moved through subsurface strata from another parcel of 
     real estate at which the release actually occurred, unless--
       ``(i) the ground water is in use as a public drinking water 
     supply or was in such use at the time of the release; and
       ``(ii) the owner or operator of the facility is liable, or 
     is affiliated with any other person that is liable, for any 
     response costs at the facility, through any direct or 
     indirect familial relationship, or any contractual, 
     corporate, or financial relationship other than that created 
     by the instruments by which title to the facility is conveyed 
     or financed.''; and
       (B) by adding at the end the following:
       ``(h) Listing of Particular Parcels.--
       ``(1) Definition.--In subsection (a)(8)(C) and paragraph 
     (2) of this subsection, the term `parcel of real property' 
     means a parcel, lot, or tract of land that has a separate 
     legal description from that of any other parcel, lot, or 
     tract of land the legal description and ownership of which 
     has been recorded in accordance with the law of the State in 
     which it is located.
       ``(2) Statutory construction.--Nothing in subsection 
     (a)(8)(C) limits the Administrator's authority under section 
     104 to obtain access to and undertake response actions at any 
     parcel of real property to which a released hazardous 
     substance, pollutant, or contaminant has migrated in the 
     ground water.''.
       (2) Revision of National Priorities List.--Not later than 
     180 days after the date of enactment of this Act, the 
     President shall revise the National Priorities List to 
     conform with the amendments made by paragraph (1).
       (c) Conforming Amendment.--Section 107(a) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607) is amended by striking 
     ``of this section'' and inserting ``and the exemptions and 
     limitations stated in this section''.

     SEC. 103. PROSPECTIVE PURCHASERS AND WINDFALL LIENS.

       (a) Definition of Bona Fide Prospective Purchaser.--Section 
     101 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is 
     amended by adding at the end the following:
       ``(39) Bona fide prospective purchaser.--The term `bona 
     fide prospective purchaser' means a person that acquires 
     ownership of a facility after the date of enactment of this 
     paragraph, or a tenant of such a person, that establishes 
     each of the following by a preponderance of the evidence:
       ``(A) Disposal prior to acquisition.--All deposition of 
     hazardous substances at the facility occurred before the 
     person acquired the facility.
       ``(B) Inquiries.--
       ``(i) In general.--The person made all appropriate 
     inquiries into the previous ownership and uses of the 
     facility and the facility's real property in accordance with 
     generally accepted good commercial and customary standards 
     and practices.
       ``(ii) Standards and practices.--The standards and 
     practices referred to in paragraph (35)(B)(ii) or those 
     issued or adopted by the Administrator under that paragraph 
     shall be considered to satisfy the requirements of this 
     subparagraph.
       ``(iii) Residential use.--In the case of property for 
     residential or other similar use purchased by a 
     nongovernmental or noncommercial entity, a facility 
     inspection and title search that reveal no basis for further 
     investigation shall be considered to 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 each hazardous substance found at the facility by 
     taking reasonable steps to stop any continuing release, 
     prevent any threatened future release and prevent or limit 
     human or natural resource exposure to any previously released 
     hazardous substance.
       ``(E) Cooperation, assistance, and access.--The person has 
     not failed to substantially comply with the requirement 
     stated in section 122(p)(2)(H) with respect to the facility.
       ``(F) No affiliation.--The person is not affiliated through 
     any familial or corporate relationship with any person that 
     is or was a party potentially responsible for response costs 
     at the facility.''.
       (b) Amendment.--Section 107 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607) (as amended by section 102) is amended 
     by adding at the end the following:
       ``(p) Prospective Purchaser and Windfall Lien.--
       ``(1) Limitation on liability.--Notwithstanding subsection 
     (a), a bona fide prospective purchaser whose potential 
     liability for a release or threatened release is based solely 
     on the purchaser's being considered to be an owner or 
     operator of a facility shall not be liable as long as the 
     bona fide prospective purchaser does not impede the 
     performance of a response action or natural resource 
     restoration.
       ``(2) Lien.--If there are unrecovered response costs at a 
     facility for which an owner of the facility is not liable by 
     reason of subsection (n)(1) and each of the conditions 
     described in paragraph (3) is met, the United States shall 
     have a lien on the facility, or may obtain from appropriate 
     responsible party a lien on any other property or other 
     assurances of payment satisfactory to the Administrator, for 
     such unrecovered costs.
       ``(3) Conditions.--The conditions referred to in paragraph 
     (1) are the following:
       ``(A) Response action.--A response action for which there 
     are unrecovered costs is carried out at the facility.
       ``(B) Fair market value.--The response action increases the 
     fair market value of the facility above the fair market value 
     of the facility that existed 180 days before the response 
     action was initiated.
       ``(C) Sale.--A sale or other disposition of all or a 
     portion of the facility has occurred.
       ``(4) Amount.--A lien under paragraph (2)--
       ``(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 at which costs are first 
     incurred by the United States with respect to a response 
     action at the facility;
       ``(C) shall be subject to the requirements of subsection 
     (l)(3); and
       ``(D) shall continue until the earlier of satisfaction of 
     the lien or recovery of all response costs incurred at the 
     facility.''.

     SEC. 104. SAFE HARBOR INNOCENT LANDHOLDERS.

       (a) Amendment.--Section 101(35) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(35)) is amended--
       (1) in subparagraph (A)--
       (A) in the matter that precedes clause (i), by striking 
     ``deeds or'' and inserting ``deeds, easements, leases, or''; 
     and
       (B) in the matter that follows clause (iii)--
       (i) by striking ``he'' and inserting ``the defendant''; and
       (ii) by striking the period at the end and inserting ``, 
     has provided full cooperation, assistance, and facility 
     access to the 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, and has taken no action that impeded the 
     effectiveness or integrity of any institutional control 
     employed under section 121 at the facility.''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Reason to know.--
       ``(i) All appropriate inquiries.--To establish that the 
     defendant had no reason to know of the matter described in 
     subparagraph (A)(i), the defendant must show that--

       ``(I) at or prior to the date on which the defendant 
     acquired the facility, the defendant undertook all 
     appropriate inquiries into the previous ownership and uses of 
     the facility in accordance with generally accepted good 
     commercial and customary standards and practices; and
       ``(II) the defendant exercised appropriate care with 
     respect to each hazardous substance found at the facility by 
     taking reasonable steps to stop any continuing release, 
     prevent any threatened future release and prevent or limit 
     human or natural resource exposure to any previously released 
     hazardous substance.

       ``(ii) Standards and practices.--The Administrator shall by 
     regulation establish as standards and practices for the 
     purpose of clause (i)--

       ``(I) the American Society for Testing and Materials (ASTM) 
     Standard E1527-94, entitled `Standard Practice for 
     Environmental Site Assessments: Phase I Environmental Site 
     Assessment Process'; or
       ``(II) alternative standards and practices under clause 
     (iii).

       ``(iii) Alternative standards and practices.--

       ``(I) In general.--The Administrator may by regulation 
     issue alternative standards

[[Page S5746]]

     and practices or designate standards developed by other 
     organizations than the American Society for Testing and 
     Materials after conducting a study of commercial and 
     industrial practices concerning the transfer of real property 
     in the United States.
       ``(II) Considerations.--In issuing or designating 
     alternative standards and practices under subclause (I), the 
     Administrator shall consider including each of the following:

       ``(aa) The results of an inquiry by an environmental 
     professional.
       ``(bb) Interviews with past and present owners, operators, 
     and occupants of the facility and the facility's real 
     property for the purpose of gathering information regarding 
     the potential for contamination at the facility and the 
     facility's real property.
       ``(cc) Reviews 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 the property was first 
     developed.
       ``(dd) Searches for recorded environmental cleanup liens, 
     filed under Federal, State, or local law, against the 
     facility or the facility's real property.
       ``(ee) Reviews 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 the facility's real 
     property.
       ``(ff) Visual inspections of the facility and facility's 
     real property and of adjoining properties.
       ``(gg) Specialized knowledge or experience on the part of 
     the defendant.
       ``(hh) The relationship of the purchase price to the value 
     of the property if the property was uncontaminated.
       ``(ii) Commonly known or reasonably ascertainable 
     information about the property.
       ``(jj) The degree of obviousness of the presence or likely 
     presence of contamination at the property, and the ability to 
     detect such contamination by appropriate investigation.
       ``(iv) 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 facility 
     inspection and title search that reveal no basis for further 
     investigation shall be considered to satisfy the requirements 
     of this subparagraph.''.
       (b) Standards and Practices.--
       (1) Establishment by regulation.--The Administrator of the 
     Environmental Protection Agency shall issue the regulation 
     required by section 101(35)(B)(ii) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (as added by subsection (a)) not later than 1 year after 
     the date of enactment of this Act.
       (2) Interim standards and practices.--Until the 
     Administrator issues the regulation described in paragraph 
     (1), in making a determination under section 101(35)(B)(i) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (as added by subsection (a)), there 
     shall be taken into account--
       (A) any specialized knowledge or experience on the part of 
     the defendant;
       (B) the relationship of the purchase price to the value of 
     the property if the property was uncontaminated;
       (C) commonly known or reasonably ascertainable information 
     about the property;
       (D) the degree of obviousness of the presence or likely 
     presence of contamination at the property; and
       (E) the ability to detect the contamination by appropriate 
     investigation.

                   TITLE II--STATE RESPONSE PROGRAMS

     SEC. 201. STATE RESPONSE PROGRAMS.

       (a) Definitions.--Section 101 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601) (as amended by section 103(a)) is 
     amended by adding at the end the following:
       ``(40) Facility subject to state cleanup.--The term 
     `facility subject to State cleanup' means a facility that--
       ``(A) is not listed or proposed for listing on the National 
     Priorities List; and
       ``(B)(i) has been archived from the Comprehensive 
     Environmental Response, Compensation, and Liability 
     Information System;
       ``(ii) was included on the Comprehensive Environmental 
     Response, Compensation, and Liability Information System 
     before the date of enactment of this section and is not 
     listed or proposed for listing on the National Priorities 
     List within 2 years after the date of enactment of this 
     section; or
       ``(iii) is added to the Comprehensive Environmental 
     Response, Compensation, and Liability Information System 
     after the date of enactment of this section, if at least 2 
     years have elapsed since the earlier of--
       ``(I) inclusion of the facility on the Comprehensive 
     Environmental Response, Compensation, and Liability 
     Information System; or
       ``(II) issuance at the facility of an order under section 
     106(a).
       ``(41) Qualifying state response program.--The term 
     `qualifying State response program' means a State program 
     that includes the elements described in section 128(b).''.
       (b) Qualifying State Response Programs.--Title I of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) (as amended by 
     section 101(a)) is amended by adding at the end the 
     following:

     ``SEC. 128. QUALIFYING STATE RESPONSE PROGRAMS.

       ``(a) Assistance to States.--The Administrator shall 
     provide grants to States to establish and expand qualifying 
     State response programs that include the elements listed in 
     subsection (b).
       ``(b) Elements.--The elements of a qualifying State 
     response program are the following:
       ``(1) Oversight and enforcement authorities or other 
     mechanisms that are adequate to ensure that--
       ``(A) response actions will protect human health and the 
     environment and be conducted in accordance with applicable 
     Federal and State law; and
       ``(B) in the case of a voluntary response action, if the 
     person conducting the voluntary response action fails to 
     complete the necessary response activities, including 
     operation and maintenance or long-term monitoring activities, 
     the necessary response activities are completed.
       ``(2) Adequate opportunities for public participation, 
     including prior notice and opportunity for comment in 
     appropriate circumstances, in selecting response actions.
       ``(3) Mechanisms for approval of a response action plan, or 
     a requirement for certification or similar documentation from 
     the State to the person conducting a response action 
     indicating that the response is complete.
       ``(c) Enforcement in Cases of a Release Subject to a State 
     Plan.--
       ``(1) Enforcement.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in the case of a release or threatened release of a hazardous 
     substance at a facility subject to State cleanup, neither the 
     President nor any other person may use any authority under 
     this Act to take an enforcement action against any person 
     regarding any matter that is within the scope of a response 
     action that is being conducted or has been completed under 
     State law.
       ``(B) Exceptions.--The President may bring an enforcement 
     action under this Act with respect to a facility described in 
     subparagraph (A) if--
       ``(i) the enforcement action is authorized under section 
     104;
       ``(ii) the State requests that the President provide 
     assistance in the performance of a response action and that 
     the enforcement bar in subparagraph (A) be lifted;
       ``(iii) at a facility at which response activities are 
     ongoing the Administrator--

       ``(I) makes a written determination that the State is 
     unwilling or unable to take appropriate action, after the 
     Administrator has provided the Governor notice and an 
     opportunity to cure; and
       ``(II) the Administrator determines that the release or 
     threat of release constitutes a public health or 
     environmental emergency under section 104(a)(4);

       ``(iv) the Administrator determines that contamination has 
     migrated across a State line, resulting in the need for 
     further response action to protect human health or the 
     environment; or
       ``(v) in the case of a facility at which all response 
     actions have been completed, the Administrator--

       ``(I) makes a written determination that the State is 
     unwilling or unable to take appropriate action, after the 
     Administrator has provided the Governor notice and an 
     opportunity to cure; and
       ``(II) makes a written determination that the facility 
     presents a substantial risk that requires further remediation 
     to protect human health or the environment, as evidenced by--

       ``(aa) newly discovered information regarding contamination 
     at the facility;
       ``(bb) the discovery that fraud was committed in 
     demonstrating attainment of standards at the facility; or
       ``(cc) a failure of the remedy under the State remedial 
     action plan or a change in land use giving rise to a clear 
     threat of exposure.
       ``(C) EPA notification.--
       ``(i) In general.--In the case of a facility at which there 
     is a release or threatened release of a hazardous substance, 
     pollutant, or contaminant and for which the Administrator 
     intends to undertake an administrative or enforcement action, 
     the Administrator, prior to taking the administrative or 
     enforcement action, shall notify the State of the action the 
     Administrator intends to take and wait for an acknowledgment 
     from the State under clause (ii).
       ``(ii) State response.--Not later than 48 hours after 
     receiving a notice from the Administrator under clause (i), 
     the State shall notify the Administrator if the facility is 
     currently or has been subject to a State remedial action 
     plan.
       ``(iii) Public health or environmental emergency.--If the 
     Administrator finds that a release or threatened release 
     constitutes a public health or environmental emergency under 
     section 104(a)(4), the Administrator may take appropriate 
     action immediately after giving notification under clause (i) 
     without waiting for State acknowledgment.
       ``(2) Cost or damage recovery actions.--Paragraph (1) shall 
     not apply to an action brought by a State, Indian Tribe, or 
     general purpose unit of local government for the recovery of 
     costs or damages under this Act.
       ``(3) Savings provision.--
       ``(A) Existing agreements.--A memorandum of agreement, 
     memorandum of understanding, or similar agreement between

[[Page S5747]]

     the President and a State or Indian tribe defining Federal 
     and State or tribal response action responsibilities that was 
     in effect as of the date of enactment of this section with 
     respect to a facility to which paragraph (1)(C) does not 
     apply shall remain effective until the agreement expires in 
     accordance with the terms of the agreement.
       ``(B) New agreements.--Nothing in this subsection precludes 
     the President from entering into an agreement with a State or 
     Indian tribe regarding responsibility at a facility to which 
     paragraph (1)(C) does not apply.''.

     SEC. 202. NATIONAL PRIORITIES LIST COMPLETION.

       Section 105 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9605) is 
     amended by striking subsection (b) and inserting the 
     following:
       ``(b) National Priorities List Completion.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this paragraph, the President shall complete the 
     evaluation of all facilities classified as awaiting a 
     National Priorities List decision to determine the risk or 
     danger to public health or welfare or the environment posed 
     by each facility as compared with the other facilities.
       ``(2) Maximum number.--For fiscal years 2000 through 2004, 
     the President shall add a maximum of 30 facilities to the 
     National Priorities List on an annual basis.
       ``(3) Requirement of request by the governor of a state.--
     No facility shall be added to the National Priorities List 
     without the President having first received a written 
     communication from the Governor of the State in which the 
     facility is located requesting that the facility be added.''.

     SEC. 203. FEDERAL EMERGENCY REMOVAL AUTHORITY.

       Section 104(c)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9604(c)(1)) is amended--
       (1) in subparagraph (C), by striking ``consistent with the 
     remedial action to be taken'' and inserting ``not 
     inconsistent with any remedial action that has been selected 
     or is anticipated at the time of any removal action at a 
     facility,'';
       (2) by striking ``$2,000,000'' and inserting 
     ``$5,000,000''; and
       (3) by striking ``12 months'' and inserting ``3 years''.

     SEC. 204. STATE COST SHARE.

       Section 104(c) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9604(c)) 
     is amended--
       (1) by striking ``(c)(1) Unless'' and inserting the 
     following:
       ``(c) Miscellaneous Limitations and Requirements.--
       ``(1) Continuance of obligations from fund.--Unless'';
       (2) in paragraph (1), by striking ``taken obligations'' and 
     inserting ``taken, obligations'';
       (3) by striking ``(2) The President'' and inserting the 
     following:
       ``(2) Consultation.--The President''; and
       (4) by striking paragraph (3) and inserting the following:
       ``(3) State cost share.--
       ``(A) In general.--The Administrator shall not provide any 
     funding for remedial action under this section unless the 
     State in which the release occurs first enters into a 
     contract or cooperative agreement with the Administrator that 
     provides assurances that the State will pay, in cash or 
     through in-kind contributions, 10 percent of the costs of--
       ``(i) the remedial action; and
       ``(ii) operation and maintenance costs.
       ``(B) Activities with respect to which state cost share is 
     required.--No State cost share shall be required except for 
     remedial actions under this section.
       ``(C) Indian tribes.--The requirements of this paragraph 
     shall not apply in the case of remedial action to be taken on 
     land or water--
       ``(i) held by an Indian Tribe;
       ``(ii) held by the United States in trust for an Indian 
     Tribe;
       ``(iii) held by a member of an Indian Tribe (if the land or 
     water is subject to a trust restriction on alienation); or
       ``(iv) within the borders of an Indian reservation.

      TITLE III--FAIR SHARE LIABILITY ALLOCATIONS AND PROTECTIONS

     SEC. 301. LIABILITY EXEMPTIONS AND LIMITATIONS.

       (a) Definitions.--Section 101 of the Comprehensive 
     Environmental Response, Liability, and Compensation Act of 
     1980 (42 U.S.C. 9601) (as amended by section 201(a)) is 
     amended by adding at the end the following:
       ``(42) Codisposal landfill.--The term `codisposal landfill' 
     means a landfill that--
       ``(A) was listed on the National Priorities List as of the 
     date of enactment of this paragraph;
       ``(B) received for disposal municipal solid waste or sewage 
     sludge; and
       ``(C) may also have received, before the effective date of 
     requirements under subtitle C of the Solid Waste Disposal Act 
     (42 U.S.C. 6921 et seq.), any hazardous waste, if the 
     landfill contains predominantly municipal solid waste or 
     sewage sludge that was transported to the landfill from 
     outside the facility.
       ``(43) Municipal solid waste.--
       ``(A) In general.--The term `municipal solid waste' means 
     waste material generated by--
       ``(i) a household (such as a single- or multi-family 
     residence) or a public lodging (such as a hotel or motel); or
       ``(ii) a commercial, institutional, or industrial source, 
     to the extent that--

       ``(I) the waste material is substantially similar to waste 
     normally generated by a household or public lodging (without 
     regard to differences in volume); or
       ``(II) the waste material is collected and disposed of with 
     other municipal solid waste or sewage sludge and, regardless 
     of when generated, would be conditionally exempt small 
     quantity generator waste under the regulation issued under 
     section 3001(d) of the Solid Waste Disposal Act (42 U.S.C. 
     6921(d)).

       ``(B) Inclusions.--The term `municipal solid waste' 
     includes 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.
       ``(C) Exclusions.--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 that is not described in subclause (I) or (II).
       ``(44) Municipality.--
       ``(A) In general.--The term `municipality' means a 
     political subdivision of a State (including a city, county, 
     village, town, township, borough, parish, school district, 
     sanitation district, water district, or other public entity 
     performing local governmental functions).
       ``(B) Inclusions.--The term `municipality' includes a 
     natural person acting in the capacity of an official, 
     employee, or agent of any entity described in subparagraph 
     (A) in the performance of a governmental function.
       ``(45) 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 treatment works.''.
       (b) Exemptions and Limitations.--
       (1) In general.--Section 107 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607) (as amended by section 103(b)) is 
     amended by adding at the end the following:
       ``(q) Liability Exemption for Municipal Solid Waste and 
     Sewage Sludge.--No person shall be liable to the United 
     States or to any other person (including liability for 
     contribution) under this section for any response costs at a 
     facility listed on the National Priorities List to the extent 
     that--
       ``(1) the person is liable solely under paragraph (3) or 
     (4) of subsection (a); and
       ``(2) the person is--
       ``(A) an owner, operator, or lessee of residential property 
     from which all of the person's municipal solid waste was 
     generated;
       ``(B) a business entity that, during the tax year preceding 
     the date of transmittal of written notification that the 
     business is potentially liable, employs not more than 100 
     individuals; or
       ``(C) a nonprofit organization described in section 
     501(c)(3) of the Internal Revenue Code of 1986 that employs 
     not more than 100 individuals, from which all of the person's 
     municipal solid waste was generated.
       ``(r) De Micromis Contributor Exemption.--
       ``(1) In general.--In the case of a vessel or facility 
     listed on the National Priorities List, no person described 
     in paragraph (3) or (4) of subsection (a) shall be liable to 
     the United States or to any other person (including liability 
     for contribution) for any response costs under this section 
     if the activity specifically attributable to the person 
     resulted in the disposal or treatment of not more than 200 
     pounds or 110 gallons of material containing a hazardous 
     substance at the vessel or facility before the date of 
     enactment of this subsection, or such greater amount as the 
     Administrator may determine by regulation.
       ``(2) Exception.--Paragraph (1) shall not apply in a case 
     in which the Administrator determines that material described 
     in paragraph (1) has contributed or may contribute 
     significantly, individually, to the amount of response costs 
     at the facility.
       ``(s) Small Business Exemption.--
       ``(1) In general.--No person shall be liable to the United 
     States or to any person (including liability for 
     contribution) under this section for any response costs at a 
     facility listed on the National Priorities List if--
       ``(A) the person is a business that--
       ``(i) during the taxable year preceding the date of 
     transmittal of notification that the business is a 
     potentially responsible party, had full- and part-time 
     employees whose combined time was equivalent to 75 or fewer 
     full-time employees; or
       ``(ii) for that taxable year reported $3,000,000 or less in 
     gross revenue;
       ``(B) the activity specifically attributable to the person 
     resulted in the disposal or treatment of material containing 
     a hazardous substance at the vessel or facility before the 
     date of enactment of this subsection; and
       ``(C) the person is not affiliated through any familial or 
     corporate relationship with any person that is or was a party 
     potentially responsible for response costs at the facility.

[[Page S5748]]

       ``(2) Exception.--Paragraph (1) shall not apply in a case 
     in which the material containing a hazardous substance 
     referred to in subparagraph (A) contributed significantly or 
     could contribute significantly to the cost of the response 
     action with respect to the facility.
       ``(t) Municipal Solid Waste and Sewage Sludge Exemption and 
     Limitations.--
       ``(1) Contribution of municipal solid waste and municipal 
     sewage sludge.--
       ``(A) In general.--The condition stated in this 
     subparagraph is that the liability of the potentially 
     responsible party is for response costs based on paragraph 
     (3) or (4) of section 107(a) and on the potentially 
     responsible party's having arranged for disposal or treatment 
     of, arranged with a transporter for transport for disposal or 
     treatment of, or accepted for transport for disposal or 
     treatment of, municipal solid waste or municipal sewage 
     sludge at a facility listed on the National Priorities List.
       ``(B) Settlement amount.--
       ``(i) In general.--The President shall offer a settlement 
     to a party referred to in clause (i) with respect to 
     liability under paragraph (3) or (4) of section 107(a) on the 
     basis of a payment of $5.30 per ton of municipal solid waste 
     or municipal sewage sludge that the President estimates is 
     attributable to the party.
       ``(ii) Revision.--

       ``(I) In general.--The President may revise the settlement 
     amount under clause (i) by regulation.
       ``(II) Basis.--A revised settlement amount under subclause 
     (I) shall reflect the estimated per-ton cost of closure and 
     post-closure activities at a representative facility 
     containing only municipal solid waste.

       ``(C) Conditions.--The provisions for settlement described 
     in this subparagraph shall not apply with respect to a 
     facility where there is no waste except municipal solid waste 
     or municipal sewage sludge.
       ``(D) Adjustment for inflation.--The Administrator may by 
     guidance periodically adjust the settlement amount under 
     subparagraph (B) to reflect changes in the Consumer Price 
     Index (or other appropriate index, as determined by the 
     Administrator).
       ``(2) Municipal owners and operators.--
       ``(A) Aggregate liability of large municipalities.--
       ``(i) In general.--With respect to a codisposal landfill 
     that is owned or operated in whole or in part by 
     municipalities with a population of 100,000 or more 
     (according to the 1990 census), and that is not subject to 
     the criteria for solid waste landfills published under 
     subtitle D of the Solid Waste Disposal Act (42 U.S.C. 6941 et 
     seq.) at part 258 of title 40, Code of Federal Regulations 
     (or a successor regulation), the aggregate amount of 
     liability of such municipal owners and operators for response 
     costs under this section shall be not greater than 20 percent 
     of such costs.
       ``(ii) Increased amount.--The President may increase the 
     percentage under clause (i) to not more than 35 percent with 
     respect to a municipality if the President determines that 
     the municipality committed specific acts that exacerbated 
     environmental contamination or exposure with respect to the 
     facility.
       ``(iii) Decreased amount.--The President may decrease the 
     percentage under clause (i) with respect to a municipality to 
     not less than 10 percent if the President determines that the 
     municipality took specific acts of mitigation during the 
     operation of the facility to avoid environmental 
     contamination or exposure with respect to the facility.
       ``(B) Aggregate liability of small municipalities.--
       ``(i) In general.--With respect to a codisposal landfill 
     that is owned or operated in whole or in part by 
     municipalities with a population of less than 100,000 
     (according to the 1990 census), that is not subject to the 
     criteria for solid waste landfills published under subtitle D 
     of the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.) at 
     part 258 of title 40, Code of Federal Regulations (or a 
     successor regulation), the aggregate amount of liability of 
     such municipal owners and operators for response costs under 
     this section shall be not greater than 10 percent of such 
     costs.
       ``(ii) Increased amount.--The President may increase the 
     percentage under clause (i) to not more than 20 percent with 
     respect to a municipality if the President determines that 
     the municipality committed specific acts that exacerbated 
     environmental contamination or exposure with respect to the 
     facility.
       ``(iii) Decreased amount.--The President may decrease the 
     percentage under clause (i) with respect to a municipality to 
     not less than 5 percent if the President determines that the 
     municipality took specific acts of mitigation during the 
     operation of the facility to avoid environmental 
     contamination or exposure with respect to the facility.
       ``(3) Applicability.--This subsection shall not apply to--
       ``(A) a person that acted in violation of subtitle C of the 
     Solid Waste Disposal Act (42 U.S.C. 6921 et seq.) at a 
     facility that is subject to a response action under this 
     title, if the violation pertains to a hazardous substance the 
     release of threat of release of which caused the incurrence 
     of response costs at the facility;
       ``(B) a person that owned or operated a codisposal landfill 
     in violation of the applicable requirements for municipal 
     solid waste landfill units under subtitle D of the Solid 
     Waste Disposal Act (42 U.S.C. 6941 et seq.) after October 9, 
     1991, if the violation pertains to a hazardous substance the 
     release of threat of release of which caused the incurrence 
     of response costs at the facility; or
       ``(C) a person under section 122(p)(2)(G).
       ``(4) Performance of response actions.--As a condition of a 
     settlement with a municipality under this subsection, the 
     President may require that the municipality perform or 
     participate in the performance of the response actions at the 
     facility.
       ``(5) Notice of applicability.--The President shall provide 
     a potentially responsible party with notice of the potential 
     applicability of this section in each written communication 
     with the party concerning the potential liability of the 
     party.
       ``(u) Recycling Transactions.--
       ``(1) Liability clarification.--As provided in paragraphs 
     (2), (3), (4), and (5), a person who arranged for recycling 
     of recyclable material shall not be liable under paragraph 
     (3) or (4) of subsection (a) with respect to the material.
       ``(2) Recyclable material defined.--For purposes of this 
     subsection, the term `recyclable material' means scrap paper, 
     scrap plastic, scrap glass, scrap textiles, scrap rubber 
     (other than whole tires), scrap metal, or spent lead-acid, 
     spent nickel-cadmium, and other spent batteries, as well as 
     minor amounts of material incident to or adhering to the 
     scrap material as a result of its normal and customary use 
     prior to becoming scrap; except that such term shall not 
     include shipping containers of a capacity from 30 liters to 
     3,000 liters, whether intact or not, having any hazardous 
     substance (but not metal bits and pieces or hazardous 
     substance that form an integral part of the container) 
     contained in or adhering thereto.
       ``(3) Transactions involving scrap paper, plastic, glass, 
     textiles, or rubber.--Transactions involving scrap paper, 
     scrap plastic, scrap glass, scrap textiles, or scrap rubber 
     (other than whole tires) shall be deemed to be arranging for 
     recycling if the person who arranged for the transaction (by 
     selling recyclable material or otherwise arranging for the 
     recycling of recyclable material) can demonstrate by a 
     preponderance of the evidence that all of the following 
     criteria were met at the time of the transaction:
       ``(A) The recyclable material met a commercial 
     specification grade.
       ``(B) A market existed for the recyclable material.
       ``(C) A substantial portion of the recyclable material was 
     made available for use as feedstock for the manufacture of a 
     new saleable product.
       ``(D) The recyclable material could have been a replacement 
     or substitute for a virgin raw material, or the product to be 
     made from the recyclable material could have been a 
     replacement or substitute for a product made, in whole or in 
     part, from a virgin raw material.
       ``(E) For transactions occurring 90 days or more after the 
     date of enactment of this subsection, the person exercised 
     reasonable care to determine that the facility where the 
     recyclable material was handled, processed, reclaimed, or 
     otherwise managed by another person (hereinafter in this 
     subsection referred to as a `consuming facility') was in 
     compliance with substantive (not procedural or 
     administrative) provisions of any Federal, State, or local 
     environmental law or regulation, or compliance order or 
     decree issued pursuant thereto, applicable to the handling, 
     processing, reclamation, storage, or other management 
     activities associated with recyclable material.
       ``(F) For purposes of this paragraph, `reasonable care' 
     shall be determined using criteria that include (but are not 
     limited to)--
       ``(i) the price paid in the recycling transaction;
       ``(ii) the ability of the person to detect the nature of 
     the consuming facility's operations concerning its handling, 
     processing, reclamation, or other management activities 
     associated with recyclable material; and
       ``(iii) the result of inquiries made to the appropriate 
     Federal, State, or local environmental agency (or agencies) 
     regarding the consuming facility's past and current 
     compliance with substantive (not procedural or 
     administrative) provisions of any Federal, State, or local 
     environmental law or regulation, or compliance order or 
     decree issued pursuant thereto, applicable to the handling, 
     processing, reclamation, storage, or other management 
     activities associated with the recyclable material. For the 
     purposes of this subparagraph, a requirement to obtain a 
     permit applicable to the handling, processing, reclamation, 
     or other management activity associated with the recyclable 
     materials shall be deemed to be a substantive provision.
       ``(4) Transactions involving scrap metal.--
       ``(A) Transactions involving scrap metal shall be deemed to 
     be arranging for recycling if the person who arranged for the 
     transaction (by selling recyclable material or otherwise 
     arranging for the recycling of recyclable material) can 
     demonstrate by a preponderance of the evidence that at the 
     time of the transaction--
       ``(i) the person met the criteria set forth in paragraph 
     (3) with respect to the scrap metal;
       ``(ii) the person was in compliance with any applicable 
     regulations or standards regarding the storage, transport, 
     management, or other activities associated with the recycling 
     of scrap metal that the Administrator promulgates under the 
     Solid Waste Disposal

[[Page S5749]]

     Act subsequent to the enactment of this subsection and with 
     regard to transactions occurring after the effective date of 
     such regulations or standards; and
       ``(iii) the person did not melt the scrap metal prior to 
     the transaction.
       ``(B) For purposes of subparagraph (A)(iii), melting of 
     scrap metal does not include the thermal separation of 2 or 
     more materials due to differences in their melting points 
     (referred to as `sweating').
       ``(C) For purposes of this paragraph, the term `scrap 
     metal' means--
       ``(i) bits and pieces of metal parts (e.g., bars, turnings, 
     rods, sheets, wire) or metal pieces that may be combined 
     together with bolts or soldering (e.g., radiators, scrap 
     automobiles, railroad box cars), which when worn or 
     superfluous can be recycled; and
       ``(ii) notwithstanding subparagraph (A)(iii), metal 
     byproducts from copper and copper-based alloys that--

       ``(I) are not 1 of the primary products of a secondary 
     production process;
       ``(II) are not solely or separately produced by the 
     production process;
       ``(III) are not stored in a pile or surface impoundment; 
     and
       ``(IV) are sold to another recycler that is not 
     speculatively accumulating such metal byproducts;

     except for scrap metals that the Administrator excludes from 
     this definition by regulation.
       ``(5) Transactions involving batteries.--Transactions 
     involving spent lead-acid batteries, spent nickel-cadmium 
     batteries, or other spent batteries shall be deemed to be 
     arranging for recycling if the person who arranged for the 
     transaction (by selling recyclable material or otherwise 
     arranging for the recycling of recyclable material) can 
     demonstrate by a preponderance of the evidence that at the 
     time of the transaction--
       ``(A) the person met the criteria set forth in paragraph 
     (3) with respect to the spent lead-acid batteries, spent 
     nickel-cadmium batteries, or other spent batteries, but the 
     person did not recover the valuable components of such 
     batteries; and
       ``(B)(i) with respect to transactions involving lead-acid 
     batteries, the person was in compliance with applicable 
     Federal environmental regulations or standards, and any 
     amendments thereto, regarding the storage, transport, 
     management, or other activities associated with the recycling 
     of spent lead-acid batteries;
       ``(ii) with respect to transactions involving nickel-
     cadmium batteries, Federal environmental regulations or 
     standards are in effect regarding the storage, transport, 
     management, or other activities associated with the recycling 
     of spent nickel-cadmium batteries, and the person was in 
     compliance with applicable regulations or standards or any 
     amendments thereto; or
       ``(iii) with respect to transactions involving other spent 
     batteries, Federal environmental regulations or standards are 
     in effect regarding the storage, transport, management, or 
     other activities associated with the recycling of such 
     batteries, and the person was in compliance with applicable 
     regulations or standards or any amendments thereto.
       ``(6) Exclusions.--
       ``(A) The exemptions set forth in paragraphs (3), (4), and 
     (5) shall not apply if--
       ``(i) the person had an objectively reasonable basis to 
     believe at the time of the recycling transaction--

       ``(I) that the recyclable material would not be recycled;

       ``(II) that the recyclable material would be burned as 
     fuel, or for energy recovery or incineration; or
       ``(III) for transactions occurring before 90 days after the 
     date of the enactment of this subsection, that the consuming 
     facility was not in compliance with a substantive (not 
     procedural or administrative) provision of any Federal, 
     State, or local environmental law or regulation, or 
     compliance order or decree issued pursuant thereto, 
     applicable to the handling, processing, reclamation, or other 
     management activities associated with the recyclable 
     material;

       ``(ii) the person had reason to believe that hazardous 
     substances had been added to the recyclable material for 
     purposes other than processing for recycling;
       ``(iii) the person failed to exercise reasonable care with 
     respect to the management and handling of the recyclable 
     material (including adhering to customary industry practices 
     current at the time of the recycling transaction designed to 
     minimize, through source control, contamination of the 
     recyclable material by hazardous substances); or
       ``(iv) with respect to any item of a recyclable material, 
     the item contained polychlorinated biphenyls at a 
     concentration in excess of 50 parts per million or any new 
     standard promulgated pursuant to applicable Federal laws.
       ``(B) For purposes of this paragraph, an objectively 
     reasonable basis for belief shall be determined using 
     criteria that include (but are not limited to) the size of 
     the person's business, customary industry practices 
     (including customary industry practices current at the time 
     of the recycling transaction designed to minimize, through 
     source control, contamination of the recyclable material by 
     hazardous substances), the price paid in the recycling 
     transaction, and the ability of the person to detect the 
     nature of the consuming facility's operations concerning its 
     handling, processing, reclamation, or other management 
     activities associated with the recyclable material.
       ``(C) For purposes of this paragraph, a requirement to 
     obtain a permit applicable to the handling, processing, 
     reclamation, or other management activities associated with 
     recyclable material shall be deemed to be a substantive 
     provision.''.
       (2) Transition rules.--
       (A) In general.--The exemptions under subsections (q), (r), 
     and (s) of section 107 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(q), 9607(r), 9607(s)) (as added by paragraph (1)) shall 
     not apply to any settlement or judgment approved by a United 
     States Federal District Court--
       (i) before the date of enactment of this Act; or
       (ii) not later than 180 days after the date of enactment of 
     this Act.
       (B) Effect on pending or concluded actions.--The exemptions 
     provided in subsection (u) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(u)) (as added by paragraph (1)) shall not affect any 
     concluded judicial or administrative action or any pending 
     judicial action initiated by the United States prior to the 
     date of enactment of this Act.
       (c) Service Station Dealers.--Section 114(c) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9614(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``No person'' and inserting ``A person'';
       (B) by striking ``may recover'' and inserting ``may not 
     recover'';
       (C) by striking ``if such recycled oil'' and inserting 
     ``unless the service station dealer''; and
       (D) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) mixed the recycled oil with any other hazardous 
     substance; or
       ``(B) did not store, treat, transport, or otherwise manage 
     the recycled oil in compliance with any applicable 
     regulations or standards promulgated under section 3014 of 
     the Solid Waste Disposal Act (42 U.S.C. 6935) and other 
     applicable authorities that were in effect on the date of 
     such activity.''; and
       (2) by striking paragraph (4).

     SEC. 302. EXPEDITED SETTLEMENT FOR CERTAIN PARTIES.

       (a) Parties Eligible.--Section 122(g) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9622(g)) is amended--
       (1) by striking the subsection heading and inserting the 
     following:
       ``(g) Expedited Final Settlement.--'';
       (2) in paragraph (1)--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) by striking ``(1)'' and all that follows through 
     subparagraph (A) and inserting the following:
       ``(1) Parties eligible.--
       ``(A) In general.--As expeditiously as practicable, the 
     President shall--
       ``(i) notify each potentially responsible party that meets 
     1 or more of the conditions stated in subparagraphs (B), (C), 
     and (D) of the party's eligibility for a settlement; and
       ``(ii) offer to reach a final administrative or judicial 
     settlement with the party.
       ``(B) De minimis contribution.--The condition stated in 
     this subparagraph is that the liability is for response costs 
     based on paragraph (3) or (4) of section 107(a) and the 
     party's contribution of a hazardous substance at a facility 
     is de minimis. For the purposes of this subparagraph, a 
     potentially responsible party's contribution shall be 
     considered to be de minimis only if the President determines 
     that both of the following criteria are met:
       ``(i) Minimal amount of material.--The amount of material 
     containing a hazardous substance contributed by the 
     potentially responsible party to the facility is minimal 
     relative to the total amount of material containing hazardous 
     substances at the facility. The amount of a potentially 
     responsible party's contribution shall be presumed to be 
     minimal if the amount is 1 percent or less of the total 
     amount of material containing a hazardous substance at the 
     facility, unless the Administrator promptly identifies a 
     greater threshold based on site-specific factors.
       ``(ii) Hazardous effects.--The material containing a 
     hazardous substance contributed by the potentially 
     responsible party does not present toxic or other hazardous 
     effects that are significantly greater than the toxic or 
     other hazardous effects of other material containing a 
     hazardous substance at the facility.'';
       (C) in subparagraph (C) (as redesignated by subparagraph 
     (A))--
       (i) by redesignating clauses (i) through (iii) as 
     subclauses (I) through (III), respectively, and adjusting the 
     margins appropriately;
       (ii) by striking ``(C) The potentially responsible party'' 
     and inserting the following:
       ``(C) Owners of real property.--
       ``(i) In general.--The condition stated in this 
     subparagraph is that the potentially responsible party''; and
       (iii) by striking ``This subparagraph (B)'' and inserting 
     the following:
       ``(ii) Applicability.--Clause (i)''; and
       (D) by adding at the end the following:
       ``(D) Reduction in settlement amount based on limited 
     ability to pay.--
       ``(i) In general.--The condition stated in this 
     subparagraph is that--

[[Page S5750]]

       ``(I) the potentially responsible party is--

       ``(aa) a natural person;
       ``(bb) a small business; or
       ``(cc) a municipality;

       ``(II) the potentially responsible party demonstrates an 
     inability to pay or has only a limited ability to pay 
     response costs, as determined by the Administrator under a 
     regulation promulgated by the Administrator, after--

       ``(aa) public notice and opportunity for comment; and
       ``(bb) consultation with the Administrator of the Small 
     Business Administration and the Secretary of Housing and 
     Urban Development; and

       ``(III) in the case of a potentially responsible party that 
     is a small business, the potentially responsible party does 
     not qualify for the small business exemption under section 
     107(s) because of the application of section 107(s)(2).

       ``(ii) Small businesses.--

       ``(I) Definition of small business.--In this subparagraph, 
     the term `small business' means a business entity that--

       ``(aa) during the taxable year preceding the date of 
     transmittal of notification that the business is a 
     potentially responsible party, had full- and part-time 
     employees whose combined time was equivalent to that of 75 or 
     fewer full-time employees or for that taxable year reported 
     $3,000,000 or less in gross revenue; and
       ``(bb) is not affiliated through any familial or corporate 
     relationship with any person that is or was a party 
     potentially responsible for response costs at the facility.

       ``(II) Considerations.--At the request of a small business, 
     the President shall take into consideration the ability of 
     the small business to pay response costs and still maintain 
     its basic business operations, including--

       ``(aa) consideration of the overall financial condition of 
     the small business; and
       ``(bb) demonstrable constraints on the ability of the small 
     business to raise revenues.

       ``(III) Information.--A small business requesting 
     settlement under this paragraph shall promptly provide the 
     President with all information needed to determine the 
     ability of the small business to pay response costs.
       ``(IV) Determination.--A small business shall demonstrate 
     the extent of its ability to pay response costs, and the 
     President shall perform any analysis that the President 
     determines may assist in demonstrating the impact of a 
     settlement on the ability of the small business to maintain 
     its basic operations. The President, in the discretion of the 
     President, may perform such an analysis for any other party 
     or request the other party to perform the analysis.
       ``(V) Alternative payment methods.--If the President 
     determines that a small business is unable to pay its total 
     settlement amount immediately, the President shall consider 
     such alternative payment methods as may be necessary or 
     appropriate.

       ``(iii) Municipalities.--

       ``(I) Considerations.--The President shall consider the 
     inability or limited ability to pay of a municipality to the 
     extent that the municipality provides information with 
     respect to--

       ``(aa) the general obligation bond rating and information 
     about the most recent bond issue for which the rating was 
     prepared;
       ``(bb) the amount of total available funds (other than 
     dedicated funds or State assistance payments for remediation 
     of inactive hazardous waste sites);
       ``(cc) the amount of total operating revenues (other than 
     obligated or encumbered revenues);
       ``(dd) the amount of total expenses;
       ``(ee) the amounts of total debt and debt service;
       ``(ff) per capita income and cost of living;
       ``(gg) real property values;
       ``(hh) unemployment information; and
       ``(ii) population information.

       ``(II) Evaluation of impact.--A municipality may submit for 
     consideration by the President an evaluation of the potential 
     impact of the settlement on the provision of municipal 
     services and the feasibility of making delayed payments or 
     payments over time.
       ``(III) Risk of default or violation.--A municipality may 
     establish an inability to pay for purposes of this 
     subparagraph by showing that payment of its liability under 
     this Act would--

       ``(aa) create a substantial demonstrable risk that the 
     municipality would default on debt obligations existing as of 
     the time of the showing, go into bankruptcy, be forced to 
     dissolve, or be forced to make budgetary cutbacks that would 
     substantially reduce the level of protection of public health 
     and safety; or
       ``(bb) necessitate a violation of legal requirements or 
     limitations of general applicability concerning the 
     assumption and maintenance of fiscal municipal obligations.

       ``(IV) Other factors relevant to settlements with 
     municipalities.--In determining an appropriate settlement 
     amount with a municipality under this subparagraph, the 
     President may consider other relevant factors, including the 
     fair market value of any in-kind services that the 
     municipality may provide to support the response action at 
     the facility.

       ``(iv) Other potentially responsible parties.--This 
     subparagraph does not affect the President's authority to 
     evaluate the ability to pay of a potentially responsible 
     party other than a natural person, small business, or 
     municipality or to enter into a settlement with such other 
     party based on that party's ability to pay.
       ``(E) Additional conditions for expedited settlements.--
       ``(i) Basis of determination.--If the President determines 
     that a potentially responsible party is not eligible for 
     settlement under this paragraph, the President shall state 
     the reasons for the determination in writing to any 
     potentially responsible party that requests a settlement 
     under this paragraph.''.
       (b) Settlement Offers.--Section 122(g) of the Comprehensive 
     Environment Response, Liability, and Compensation Act of 1980 
     (42 U.S.C. 9622(g)) is amended--
       (1) by redesignating paragraph (6) as paragraph (7); and
       (2) by inserting after paragraph (5) the following:
       ``(6) Settlement offers.--
       ``(A) Notification.--As soon as practicable after receipt 
     of sufficient information to make a determination, the 
     Administrator shall notify any person that the Administrator 
     determines is eligible under paragraph (1) of the person's 
     eligibility for the expedited final settlement.
       ``(B) Offers.--As soon as practicable after receipt of 
     sufficient information, the Administrator shall submit a 
     written settlement offer to each person that the 
     Administrator determines, based on information available to 
     the Administrator at the time at which the determination is 
     made, to be eligible for a settlement under paragraph (1).
       ``(C) Information.--At the time at which the Administrator 
     submits an offer under paragraph (1), the Administrator 
     shall, at the request of the recipient of the offer, make 
     available to the recipient any information available under 
     section 552 of title 5, United States Code, on which the 
     Administrator bases the settlement offer, and if the 
     settlement offer is based in whole or in part on information 
     not available under that section, so inform the recipient.''.

     SEC. 303. FAIR SHARE SETTLEMENTS AND STATUTORY ORPHAN SHARES.

       (a) In General.--Section 122 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9622) is amended by adding at the end the 
     following:
       ``(n) Fair Share Allocation.--
       ``(1) Process.--The President shall conduct an impartial 
     fair share allocation of response costs at National Priority 
     List facilities.
       ``(2) Factors.--In conducting an allocation under this 
     subsection, the President, without regard to any theory of 
     joint and several liability, shall estimate the fair share of 
     each potentially responsible party using principles of 
     equity, the best information reasonably available to the 
     President, and the following factors:
       ``(A) the quantity of hazardous substances contributed by 
     each party;
       ``(B) the degree of toxicity of hazardous substances 
     contributed by each party;
       ``(C) the mobility of hazardous substances contributed by 
     each party;
       ``(D) the degree of involvement of each party in the 
     generation, transportation, treatment, storage, or disposal 
     of hazardous substances;
       ``(E) the degree of care exercised by each party with 
     respect to hazardous substances, taking into account the 
     characteristics of the hazardous substances;
       ``(F) the cooperation of each party in contributing to any 
     response action and in providing complete and timely 
     information to the United States or the allocator; and
       ``(G) such other equitable factors as the President 
     considers appropriate.
       ``(3) Scope.--A fair share allocation under this subsection 
     shall include any response costs at a National priorities 
     List facility that are not addressed in a settlement or a 
     judgment approved by a United States Federal District Court--
       ``(A) before the date of enactment of this subsection; or
       ``(B) not later than 180 days after the date of enactment 
     of this subsection.
       ``(4) Settlements based on allocations.--
       ``(A) In general.--A party may settle any liability to the 
     United States for response costs under this Act for its 
     allocated fair share, including a reasonable risk premium 
     that reflects uncertainties existing at the time of 
     settlement.
       ``(B) Completion of obligations.--A person that is 
     undertaking a response action under an administrative order 
     issued under section 106 or has entered into a settlement 
     decree with the United States of a State as of the date of 
     enactment of this subsection shall complete the person's 
     obligations under the order or settlement decree.
       ``(5) Unfunded and unattributable shares.--Any share 
     attributable to an insolvent, defunct, or bankrupt party, or 
     a share that cannot be attributed to any particular party, 
     shall be allocated among any responsible parties not 
     described in subsection (q), (r), (s), (t), or (u) of section 
     107 or section 122(g).
       ``(o) Statutory Orphan Shares.--
       ``(1) In general.--For purposes of this section, the 
     statutory orphan share is the difference between--
       ``(A) the liability of a party described in subsection (q), 
     (s), (t), or (u) of section 107 or section 122(g); and
       ``(B) the President's estimate of the liability of the 
     party, notwithstanding any exemption from or limitation on 
     liability in this Act.
       ``(2) Determination of statutory orphan shares.--

[[Page S5751]]

       ``(A) In general.--The President shall include an estimate 
     of the statutory orphan share of a party described in section 
     107(t) or section 122(g), based on the best information 
     reasonably available to the President, at any time at which 
     the President seeks judicial approval of a settlement with 
     the party.
       ``(3) Transition rule and subsequent settlements.--
       ``(A) In general.--Each settlement presented for judicial 
     approval on or after the date that is 1 year after the date 
     of enactment of this subsection shall include an estimate of 
     the statutory orphan share for each party described in 
     subsection (q), (s), and (u) of section 107 that is involved 
     in the settlement.
       ``(B) Subsequent settlements.--The President shall include 
     in a subsequent settlement at the same facility a revised 
     statutory orphan share estimate if the President--
       ``(i) determines that the subsequent settlement includes a 
     new statutory orphan share; or
       ``(ii) has good cause to revise an earlier statutory orphan 
     share estimate.
       ``(4) Final settlements.--
       ``(A) In general.--A judicially-approved consent decree or 
     settlement shall identify the total statutory orphan share 
     owing for a facility if the consent decree or settlement--
       ``(i) includes remedial project construction for the last 
     operable unit at the facility; or
       ``(ii) provides funding for remedial project construction 
     described in clause (i).
       ``(B) Funding and reimbursement.--A consent decree or 
     settlement described in subparagraph (A) shall include full 
     funding of any statutory orphan shares in accordance with 
     this section.
       ``(5) Hazardous substance superfund.--A statutory orphan 
     share constitutes an obligation of the Hazardous Substance 
     Superfund.
       ``(p) General Provisions Applicable to Statutory Orphan 
     Shares and Fair Share Settlements.--
       ``(1) In general.--A fair share settlement under subsection 
     (g) and a statutory orphan share under subsection (n) shall 
     be subject to paragraph (2).
       ``(2) Provisions applicable to statutory orphan shares and 
     fair share settlements.--
       ``(A) Stay of litigation and enforcement.--
       ``(i) In general.--All contribution and cost recovery 
     actions under this Act against each party described in 
     sections 107(t) and 122(g) are stayed until the Administrator 
     offers those parties a settlement.
       ``(ii) Suspension of statute of limitations.--Any statute 
     of limitations applicable to an action described in clause 
     (i) is suspended during the period that a stay under this 
     subparagraph is in effect.
       ``(B) Failure or inability to comply.--If the President 
     fails to fund a statutory orphan share, reimburse a party as 
     required by subsection (g), or include a statutory orphan 
     share estimate in any settlement when required to do so under 
     this Act, the President shall not--
       ``(i) issue any new order under section 106 at the facility 
     to any non-Federal party; or
       ``(ii) commence or maintain any new or existing action to 
     recover response costs at the facility.
       ``(C) Amounts owed.--
       ``(i) Hazardous substance superfund management.--The 
     President may provide partial reimbursement payments to a 
     party on a schedule that ensures an equitable distribution of 
     reimbursement payments to all eligible parties on a timely 
     basis.
       ``(ii) Priority.--The priority for reimbursement shall be 
     based on the length of time that has passed since the 
     settlement between the United States and the party.
       ``(iii) Payment from funds made available for subsequent 
     fiscal years.--Any amounts payable in excess of available 
     appropriations in any fiscal year shall be paid from amounts 
     made available for subsequent fiscal years, along with 
     interest on the unpaid balances at the rate equal to that of 
     the current average market yield on outstanding marketable 
     obligations of the United States with a maturity of 1 year.
       ``(D) Contribution protection.--
       ``(i) In general.--A settlement under this subsection, 
     section 107(t), or section 122(g) shall provide complete 
     protection from all claims for contribution or cost recovery 
     for response costs that are addressed in the allocation under 
     subsection (n).
       ``(ii) Costs beyond scope of allocation.--In the case of 
     response costs at a facility that, as a result of a prior, 
     judicially-approved settlement at the facility, are not 
     within the scope of an allocation under subsection (n), a 
     party shall retain the right to seek cost recovery or 
     contribution from any other party in accordance with the 
     prior settlement, except that no party may seek contribution 
     for any response costs at the facility from--

       ``(I) a party described in subsection (q), (r), (s), or (u) 
     of section 107; or
       ``(II) a party that has settled its liability under section 
     107(t) or 122(g).

       ``(E) Liability for attorney's fees for certain actions.--A 
     person that, after the date of enactment of this subsection, 
     commences a civil action for contribution under this Act 
     against a person that is not liable by operation of 
     subsections (q), (r), (s), or (u) of section 107, or has 
     resolved its liability to the United States under subsection 
     (n), section 107(t), or 122(g), shall be liable to that 
     person for all reasonable costs of defending the action, 
     including all reasonable attorney's fees and expert witness 
     fees.
       ``(F) Illegal activities.--Subsections (q), (r), (s), (t), 
     and (u) of section 107 and section 122(g) shall not apply 
     to--
       ``(i) any person whose liability for response costs under 
     section 107(a) is otherwise based on any act, omission, or 
     status that is determined by a court or administrative body 
     of competent jurisdiction, within the applicable statute of 
     limitation, to have been a violation of any Federal or State 
     law pertaining to the treatment, storage, disposal, or 
     handling of hazardous substances if the violation pertains to 
     a hazardous substance, the release or threat of release of 
     which caused the incurrence of response costs at the vessel 
     or facility;
       ``(ii) a person described in section 107(o); or
       ``(iii) a bona fide prospective purchaser.
       ``(G) Exception.--
       ``(i) In general.--The President may decline to reimburse 
     or offer a settlement to a potentially responsible party 
     under subsections (g) and (n) or section 122(g) if the 
     President makes a decision concerning a reimbursement or 
     offer of a settlement under clause (ii).
       ``(ii) Requirements for reimbursement or offer of a 
     settlement.--A potentially responsible party may be denied a 
     reimbursement or settlement under clause (i)--

       ``(I) to the extent that the person or entity has 
     operational control over a vessel or facility, if--

       ``(aa) the person or entity fails to provide full 
     cooperation to, assistance to, and access to the vessel or 
     facility to persons that are responsible for response actions 
     at the vessel or facility (including the cooperation and 
     access necessary for the installation, integrity, operation, 
     and maintenance of any complete or partial response actions 
     at the vessel or facility); or
       ``(bb) the person or entity acts in such a way as to impede 
     the effectiveness or integrity of any institutional control 
     employed at the vessel or facility; or

       ``(II) if the person or entity fails to comply with any 
     request for information or administrative subpoena issued by 
     the President under this Act.

       ``(H) Basis of determination.--If the President determines 
     that a potentially responsible party is not eligible for 
     settlement under this paragraph, the President shall state 
     the reasons for the determination in writing to any 
     potentially responsible party that requests a settlement 
     under this paragraph.
       ``(I) Waiver.--
       ``(i) Response costs in allocation.--A party that settles 
     its liability under this subsection waives the right to seek 
     cost recovery or contribution under this Act for any response 
     costs that are addressed in the allocation.
       ``(ii) Response costs of facility.--A party that settles 
     its liability under subsection 107(t) or section 122(g) 
     waives its right to seek cost recovery or contribution under 
     this Act for any response costs at the facility.
       ``(J) Performance of response actions.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     the President may require, as a condition of settlement under 
     subsection (n) and section 107(t), that 1 or more parties 
     conduct a response action at the facility.
       ``(ii) Reimbursement.--

       ``(I) In general.--The President shall reimburse a party 
     described in subparagraph (A) for costs incurred in excess of 
     the party's allocated fair share.
       ``(II) Pro rata reimbursement.--The President shall provide 
     equitable pro rata reimbursement to such parties on at least 
     an annual basis.

       ``(iii) Response actions.--No party described in 
     subsections (q), (r), (s), or (u) of section 107 or 122(g) 
     may be required to perform a response action as a condition 
     of settlement or ordered to conduct a response action under 
     section 106.
       ``(K) Judicial review.--
       ``(i) In general.--A court shall not approve any settlement 
     under this Act unless the settlement includes an estimate of 
     the statutory orphan share that is fair, reasonable and 
     consistent with this Act.
       ``(ii) Statutory orphan share settlement.--If a court 
     determines that an estimate of a statutory orphan share is 
     not fair, reasonable, or consistent with this Act, the court 
     may--

       ``(I) approve the settlement; and
       ``(II) disapprove and remand the estimate of the statutory 
     orphan share.''.

       (b) Regulations.--The President shall issue regulations to 
     implement this title not later than 180 days after the date 
     of enactment of this Act.

                           TITLE IV--FUNDING

     SEC. 401. USES OF HAZARDOUS SUBSTANCE SUPERFUND.

       (a) In General.--The Comprehensive Environmental Response 
     Compensation, and Liability Act of 1980 is amended by 
     striking sections 111 and 112 (42 U.S.C. 9611, 9612) and 
     inserting the following:

     ``SEC. 111. USES OF HAZARDOUS SUBSTANCE SUPERFUND.

       ``(a) In General.--
       ``(1) Authorization of appropriations.--
       ``(A) In general.--There is authorized to be appropriated 
     from the Hazardous Substance Fund for the purposes specified 
     in subparagraphs (A) and (B) of paragraph (2) not more than 
     $1,000,000,000 for the 5-year period beginning on the date of 
     enactment of the Superfund Program Completion Act of 1999.

[[Page S5752]]

       ``(B) Response actions.--There are authorized to be 
     appropriated from the Hazardous Substance Superfund for the 
     performance of response actions the amounts described in 
     paragraph (2)(C).
       ``(2) Specific uses.--The President shall use amounts 
     appropriated out of the Hazardous Substance Superfund only--
       ``(A) to enter into mixed funding agreements in accordance 
     with section 122;
       ``(B) to reimburse a party for response costs incurred in 
     excess of the allocated share of the party as described in a 
     final settlement under section 122; and
       ``(C) for the performance of response actions to the extent 
     that the total amount in the Hazardous Substance Superfund is 
     greater than--
       ``(i) in fiscal year 2000, $1,000,000,000;
       ``(ii) in fiscal year 2001, $800,000,000;
       ``(iii) in fiscal year 2002, $600,000,000;
       ``(iv) in fiscal year 2003, $400,000,000; and
       ``(v) in fiscal year 2004, $200,000,000.
       ``(b) Claims Against Hazardous Substance Superfund.--
       ``(1) In general.--Claims against the Hazardous Substance 
     Superfund shall not be valid or paid in excess of the total 
     amount in the Hazardous Substance Superfund at any 1 time.
       ``(2) Validity of claims exceeding amount in hazardous 
     substance superfund.--Claims against the Hazardous Substance 
     Superfund in excess of the total amount in the Hazardous 
     Substance Superfund shall become valid only when additional 
     amounts are collected for, appropriated for, or otherwise 
     added to the Hazardous Substance Superfund.
       ``(3) Insufficient balance.--
       ``(A) In general.--The President shall not issue an order 
     or seek to recover costs for a response action at a facility 
     if the amount in the Hazardous Substance Superfund is 
     insufficient to enable the President to enter into an 
     agreement or reimburse a party at the facility under 
     subsection (a).
       ``(B) Authorization of appropriations.--If sufficient funds 
     are unavailable in the Hazardous Substance Superfund to 
     satisfy claims or to enter into agreements, there are 
     authorized to be appropriated such amounts as are necessary 
     to make such payments.
       ``(4) No limitation of authority.--Nothing in this 
     subsection limits the authority of the President to act under 
     section 104.
       ``(c) Regulations.--
       ``(1) Obligation of funds.--The President may promulgate 
     regulations designating 1 or more Federal officials that may 
     obligate amounts in the Hazardous Substance Superfund in 
     accordance with this section.
       ``(2) Notice to potential injured parties.--
       ``(A) In general.--The President shall promulgate 
     regulations with respect to the notice that shall be provided 
     to potential injured parties by an owner and operator of any 
     vessel or facility from which a hazardous substance has been 
     released.
       ``(B) Substance.--The regulations under subparagraph (A) 
     shall describe the notice that would be appropriate to carry 
     out this title.
       ``(C) Compliance.--
       ``(i) In general.--On promulgation of regulations under 
     subparagraph (A), an owner and operator described in that 
     subparagraph shall provide notice in accordance with the 
     regulations.
       ``(ii) Pre-promulgation releases.--In the case of a release 
     of a hazardous substance that occurs before regulations under 
     subparagraph (A) are promulgated, an owner and operator 
     described in that subparagraph shall provide reasonable 
     notice of any release to potential injured parties by 
     publication in local newspapers serving the affected area.
       ``(iii) Releases from public vessels.--The President shall 
     provide such notification as is appropriate to potential 
     injured parties with respect to releases from public vessels.
       ``(d) Natural Resources.--
       ``(1) In general.--Except as provided in paragraph (2), 
     funds may not be used under this Act for the restoration, 
     rehabilitation, or replacement or acquisition of the 
     equivalent of any natural resource until a plan for the use 
     of the funds for those purposes has been developed and 
     adopted, after adequate public notice and opportunity for 
     hearing and consideration of all public comment, by--
       ``(A) affected Federal agencies;
       ``(B) the Governor of each State that sustained damage to 
     natural resources that are within the borders of, belong to, 
     are managed by, or appertain to the State; and
       ``(C) the governing body of any Indian tribe that sustained 
     damage to natural resources that--
       ``(i) are within the borders of, belong to, are managed by, 
     appertain to, or are held in trust for the benefit of the 
     tribe; or
       ``(ii) belong to a member of the tribe, if those resources 
     are subject to a trust restriction on alienation.
       ``(2) Emergency action exemption.--Funds may be used under 
     this Act for the restoration, rehabilitation, or replacement 
     or acquisition of the equivalent of any natural resource only 
     in circumstances requiring action to--
       ``(A) avoid an irreversible loss of a natural resource;
       ``(B) prevent or reduce any continuing danger to a natural 
     resource; or
       ``(C) prevent the loss of a natural resource in an 
     emergency situation similar to those described in 
     subparagraphs (A) and (B).
       ``(e) Post-Closure Liability Fund.--The President shall use 
     the amounts in the Post-closure Liability Fund for--
       ``(1) any of the purposes specified in subsection (a) with 
     respect to a hazardous waste disposal facility for which 
     liability has been transferred to the Post-closure Liability 
     Fund under section 107(k); and
       ``(2) payment of any claim or appropriate request for costs 
     of a response, damages, or other compensation for injury or 
     loss resulting from a release of a hazardous substance from a 
     facility described in paragraph (1) under--
       ``(A) section 107; or
       ``(B) any other Federal or State law.
       ``(f) Inspector General.--
       ``(1) Audit.--In each fiscal year, the Inspector General of 
     the Environmental Protection Agency shall conduct an annual 
     audit of--
       ``(A) all agreements and reimbursements under subsection 
     (a); and
       ``(B) all other activities of the Environmental Protection 
     Agency under this Act.
       ``(2) Report.--The Inspector General of the Environmental 
     Protection Agency shall submit to Congress an annual report 
     that--
       ``(A) describes the results of the audit under paragraph 
     (1); and
       ``(B) contains such recommendations as the Inspector 
     General considers to be appropriate.
       ``(g) Foreign Claims.--To the extent that this Act permits, 
     a foreign claimant may assert a claim to the same extent that 
     a United States claimant may assert a claim if--
       ``(1) the release of a hazardous substance occurred--
       ``(A) in the navigable waters of a foreign country of which 
     the claimant is a resident; or
       ``(B) in or on the territorial sea or adjacent shoreline of 
     a foreign country described in subparagraph (A);
       ``(2) the claimant is not otherwise compensated for the 
     loss of the claimant;
       ``(3) the hazardous substance was released from a facility 
     or vessel located adjacent to or within the navigable waters 
     under the jurisdiction of, or was discharged in connection 
     with activities conducted under--
       ``(A) section 20(a)(2) of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1346(a)(2)); or
       ``(B) the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
     seq.); and
       ``(4)(A) recovery is authorized by a treaty or an executive 
     agreement between the United States and the foreign country; 
     or
       ``(B) the Secretary of State, in consultation with the 
     Attorney General and other appropriate officials, certifies 
     that the foreign country provides a comparable remedy for 
     United States claimants.
       ``(h) Authorization of Appropriations Out of the General 
     Fund.--
       ``(1) Removal and response actions.--There are authorized 
     to be appropriated to the Environmental Protection Agency out 
     of the general fund of the Treasury or from the Hazardous 
     Substance Superfund, in accordance with section 111(a)(2)(C), 
     to conduct removal and response actions under this Act:
       ``(A) For fiscal year 2000, $900,000,000.
       ``(B) For fiscal year 2001, $875,000,000.
       ``(C) For fiscal year 2002, $850,000,000.
       ``(D) For fiscal year 2003, $825,000,000.
       ``(E) For fiscal year 2004, $800,000,000.
       ``(2) Health assessments and health consultations.--There 
     are authorized to be appropriated to the Agency for Toxic 
     Substances and Disease Registry to conduct health assessments 
     and health consultations under this Act, and for 
     epidemiologic and laboratory studies, preparation of 
     toxicologic profiles, development and maintenance of a 
     registry of persons exposed to hazardous substances to allow 
     long-term health effects studies, and diagnostic services not 
     otherwise available to determine whether persons in 
     populations exposed to hazardous substances in connection 
     with a release or suspected release are suffering from long-
     latency diseases:
       ``(A) For fiscal year 2000, $60,000,000.
       ``(B) For fiscal year 2001, $55,000,000.
       ``(C) For fiscal year 2002, $55,000,000.
       ``(D) For fiscal year 2003, $50,000,000.
       ``(E) For fiscal year 2004, $50,000,000.
       ``(3) Hazardous substance research, demonstration, and 
     training.--
       ``(A) In general.--There are authorized to be appropriated 
     not more than the following amounts for the purposes of 
     section 311(a):
       ``(i) For fiscal year 2000, $40,000,000.
       ``(ii) For fiscal year 2001, $40,000,000.
       ``(iii) For fiscal year 2002, $40,000,000.
       ``(iv) For each of fiscal years 2003 and 2004, $40,000,000.
       ``(B) Training limitation.--Not more than 15 percent of the 
     amounts appropriated under subparagraph (A) shall be used for 
     training under section 311(a) for any fiscal year.
       ``(C) University hazardous substance research centers.--Not 
     more than $5,000,000 of the amounts available in the 
     Hazardous Substance Superfund may be used in any of fiscal 
     years 2000 through 2004 for the purposes of section 311(d).
       ``(4) Brownfield grant programs.--There are authorized to 
     be appropriated to carry out section 127 $100,000,000 for 
     each of fiscal years 2000 through 2004.
       ``(5) Qualifying state response programs.--There are 
     authorized to be appropriated to maintain, establish, and 
     administer qualifying State response programs during the 
     first 5 full fiscal years following

[[Page S5753]]

     the date of enactment of this paragraph under a formula 
     established by the Administrator, $100,000,000 for each of 
     fiscal years 2000 through 2004.
       ``(6) Department of justice.--There are authorized to be 
     appropriated to the Attorney General for the enforcement of 
     this Act--
       ``(A) for fiscal year 2000, $30,000,000;
       ``(B) for fiscal year 2001, $28,000,000;
       ``(C) for fiscal year 2002, $26,000,000;
       ``(D) for fiscal year 2003, $24,000,000; and
       ``(E) for fiscal year 2004, $22,000,000.
       ``(7) Prohibition of transfer.--None of the funds 
     authorized to be appropriated under this subsection may be 
     transferred to any other Federal agency.''.
       (b) Conforming Amendments.--
       (1) Response actions.--Section 104(c) of the Comprehensive 
     Environmental Response Compensation, and Liability Act of 
     1980 (42 U.S.C. 9604(c)) is amended--
       (A) in paragraph (1), by striking ``obligations from the 
     Fund, other than those authorized by subsection (b) of this 
     section,'' and inserting ``, such response actions''; and
       (B) in paragraph (7), by striking ``shall be from funds 
     received by the Fund from amounts recovered on behalf of such 
     fund under this Act'' and inserting ``shall be from 
     appropriations out of the general fund of the Treasury''.
       (2) Information gathering and analysis.--Section 105(g)(4) 
     of the Comprehensive Environmental Response Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9605(g)(4)) is amended by 
     striking ``expenditure of monies from the Fund for''.
       (3) President.--Section 107(c)(3) of the Comprehensive 
     Environmental Response Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607(c)(3)) is amended in the first sentence 
     by striking ``Fund'' and inserting ``President''.
       (4) Other liability.--Section 109(d) of the Comprehensive 
     Environmental Response Compensation, and Liability Act of 
     1980 (42 U.S.C. 9609(d)) is amended by striking the second 
     sentence.
       (5) Source of funding.--Section 119(c)(3) of the 
     Comprehensive Environmental Response Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9619(c)(3)) is amended--
       (A) in the second sentence, by striking ``For purposes of 
     section 111, amounts'' and inserting ``Amounts''; and
       (B) in the third sentence--
       (i) by striking ``If sufficient funds are unavailable in 
     the Hazardous Substance Superfund established under 
     subchapter A of chapter 98 of the Internal Revenue Code of 
     1954 to make payments pursuant to such indemnification or if 
     the Fund is repealed, there'' and inserting ``There``; and
       (ii) by striking ``payments'' and inserting 
     ``expenditures''.
       (6) Remedial action using hazardous substance superfund.--
     Section 121(d)(4)(F) of the Comprehensive Environmental 
     Response Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(d)(4)(F)) is amended--
       (A) by striking `` using the Fund''; and
       (B) by striking ``amounts from the Fund'' and inserting 
     ``funds''.
       (7) Availability of funding.--Section 122(f)(4)(F) of the 
     Comprehensive Environmental Response Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9622(f)(4)(F)) is amended by 
     striking ``the Fund or other sources of''.

  Mr. SMITH of New Hampshire. I am pleased to join the distinguished 
chairman of the Committee on Environment and Public Works in 
introducing the Superfund Program Completion Act of 1999. This is a 
good day for the environment and for the American taxpayer, because 
this bill addresses many of the problems in Superfund that have wasted 
resources and delayed the cleanup of hazardous waste sites across the 
country.
  Since I became chairman of the Superfund, Waste Control and Risk 
Assessment Subcommittee in 1995, I have had one overriding goal with 
respect to Superfund reform: To increase cleanups by decreasing the 
unfairness of the law.
  By now, most are well aware of Superfund's dismal history. The 
program was created in 1980 to clean up abandoned hazardous waste 
sites. Begun with the best of intentions, Superfund has failed to meet 
even minimal expectations. Despite public and private expenditures of 
more than $40 billion dollars, less than 14% of approximately 1,300 
sites have been cleaned up and removed from the National Priorities 
List over the last nineteen years.
  The primary reason for this abysmal performance is Superfund's 
retroactive, strict, joint and several liability scheme. Under joint 
and several liability, the EPA or a private party can seek to hold any 
other potentially responsible party liable for the entire cleanup cost 
at a site--regardless of the type of contamination, when the material 
was disposed of, or whether the activity was legal at the time. Joint 
and several liability allows the government or a larger polluter to 
legally extort payments far in excess of a company's true share of 
responsibility for waste at a site.
  Most reasonable people would agree that such a liability scheme is 
simply unfair. Worse yet, this unfairness has significantly hindered 
progress in cleaning up sites and wasted vast amounts of taxpayer 
funding. As one might expect, when a company is faced with paying 100% 
of the costs at a site for which their true liability may be less than 
10%, that company will delay, negotiate, and litigate at every stop of 
the process. That, unfortunately, is the well-documented history of 
Superfund.
  It is important to recognize that this unfairness is not confined to 
EPA's enforcement of the law. EPA merely begins the process at most 
sites by targeting one or more large parties who are potentially 
responsible for cleanup. Then those parties typically turn around and 
sue tens or hundreds of other parties--average citizens, small 
businesses, schools, churches, and others who face huge legal bills and 
years of expensive litigation if they don't pay up.
  My position on this issue has been constant: I believe that 
retroactive, strict, joint and several liability is fundamentally 
unfair. If I had my way, I would repeal it today. Some of my colleagues 
see things differently, however, and the bill we introduce today 
represents a reasonable resolution of conflicting views on that topic.
  While our legislation does not go as far as many would like, I 
believe it goes as far as we can if we are interested in passing a bill 
this Administration will sign into law. There's an old saying around 
here: ``Don't let the perfect be the enemy of the good.'' That is 
certainly the case with Superfund and the legislation we introduce 
today. This is a good bill. It will make a profound and positive 
difference in the lives of millions of Americans. It is a bill that can 
pass the Senate on a strong bi-partisan basis; and it is a bill that 
the President should sign into law.
  The Superfund Program Completion Act makes major reforms in six 
areas. Specifically, the SPCA:
  Directs EPA to finish the job that was started nearly two decades ago 
by completing the evaluation of the 3,000 remaining sites on the CERCLA 
Information System (CERCLIS).
  Clearly allocates responsibility between states and EPA for future 
cleanups.
  Protects municipalities, small business, recyclers, and other parties 
from unfair liability--while making the system fairer for everyone 
else.
  Provides states $100 million per year and full authority for their 
own cleanup programs.
  Revitalizes communities with $100 million in annual brownfields 
redevelopment grants.
  Requires fiscal responsibility by EPA and saves taxpayers money.
  Our legislation will result in more hazardous waste sites being 
cleaned up--and in fewer dollars being wasted on litigation. It will 
give much-needed and much-deserved liability relief to innocent 
landowners, contiguous property owners, prospective purchasers, 
municipalities, small businesses and recyclers. Unlike EPA's 
administrative reforms, this bill does not shift costs from politically 
popular parties to those left holding the bag. Instead, it requires 
payment of a statutory orphan share and authorizes the use of the 
Superfund Trust Fund for those shares.

  For those left trapped in the Superfund liability scheme, the SPCA 
requires an allocation process to determine a party's fair share in an 
expedited settlement--instead of fighting it out for years in court.
  In addition to increasing fairness, the SPCA provides much needed 
guidance and direction to a sometimes wayward EPA. It recognizes and 
builds upon the growth and strength of State hazardous waste cleanup 
programs. It provides new resources to States and localities for their 
cleanup and redevelopment efforts. As many of my colleagues know, the 
fear of Superfund liability has resulted in an estimated 450,000 
abandoned or underutilized properties, or ``Brownfields,'' that lay 
fallow because private developers and municipalities don't want to be 
dragged into Superfund's litigation quagmire. With new resources and 
appropriate liability protections, our bill will allow the cleanup of 
those sites, spurring economic redevelopment in cities, towns, and 
rural areas across America.
  We take a different approach to the brownfields redevelopment issue 
than

[[Page S5754]]

the Administration seeks. Along with many of my colleagues, I believe 
that economic redevelopment is primarily a State and local issue. Our 
approach provides the resources and freedom States need to make 
progress on this front, rather than giving EPA new authority to get 
into the commercial real estate and redevelopment business. That is not 
EPA's role, nor should it be. Where EPA does have a role is in 
identifying and addressing risks at uncontrolled hazardous waste sites. 
Our legislation ensures that EPA regains its focus on that mission.
  Earlier this year, the General Accounting Office (GAO) reported that 
``completion of construction at existing sites'' and reducing new 
entries into the program was the Environmental Protection Agency's top 
Superfund priority. Unfortunately, EPA's narrow focus on generating 
construction completion statistics appears to have diverted resources 
from EPA's fundamental mission--protecting human health and the 
environment from releases of hazardous waste.
  GAO reported last year that there are still 3,000 sites awaiting a 
National Priorities List decision by EPA, most of which have been in 
the CERCLIS inventory for more than a decade. According to the report, 
however, more than 1,200 of those sites are actually ineligible for 
listing on the NPL, for a variety of reasons. Some of the sites were 
classified erroneously, while others either do not require cleanup, 
have already been cleaned up, or have final cleanup underway. EPA's 
failure to remove the specter of an NPL listing at these sites has 
likely caused significant economic and social harm to the surrounding 
communities. EPA needs to focus on that task.
  In addition, far too many of the sites that are still potentially 
eligible for listing have received little or no attention from EPA. EPA 
admitted taking no cleanup action at all at 336 sites and provided no 
information for another 48 sites. The only action taken at 719 sites 
was an initial site assessment. EPA's inattention may be due to the 
fact that EPA and state officials together identified only 232 of the 
sites as worthy of being added to the NPL. In that case, however, the 
appropriate response is to archive the sites while ensuring that any 
necessary cleanup occurs under some other Federal or state program. EPA 
needs to focus on that task as well.
  Unforfunately, there is also disagreement between EPA and state 
officials about even those 232 sites. EPA identified 132 that may be 
listed on the NPL in the future, but state officials agreed on only 26 
of those. Conversely, state officials identified a different group of 
100 sites as worthy of an NPL listing in the future.
  EPA agreed with GAO's recommendation that it ``develop a joint 
strategy'' with the States for addressing these sites. After nearly 20 
years and $20 billion in taxpayer funded EPA appropriations, it is 
disturbing that the agency only now is developing such a strategy. 
Nonetheless, Congress has an obligation to provide direction and 
assistance to EPA in this effort. The Superfund Program Completion Act 
provides that direction by:
  Requiring EPA to finish evaluating and/or archiving old sites stuck 
in the CERCLIS inventory, correcting the current imbalance between 
evaluating uncontrolled sites and amassing construction completed 
statistics.
  Providing EPA with a schedule of 30 NPL listings per year, to ensure 
that it and the States appropriately allocate sites for cleanup under 
Superfund, RCRA, or State response programs.
  Increasing current law limits on EPA removal actions to provide 
greater flexibility in responding to sites that at least initially 
should be the responsibility of the Federal government, but ultimately 
do not require an NPL listing.
  These provisions will ensure that the limited universe of sites 
remaining in the Superfund pipeline are dealt with quickly and safely.
  In addition to keeping EPA focused on the task at hand, our bill 
provides increased resources and authority to the States, in 
recognition of the progress made by State cleanup programs in the last 
decade.
  Superfund is notable among the major Federal environmental statutes 
not only for its abysmal track record, but also for its heavy reliance 
on EPA action rather than state implementation. In other environmental 
programs--RCRA, the Clean Water Act, the Safe Drinking Water Act--EPA 
typically sets general program direction and provides technical support 
while leaving implementation and enforcement to the states. In the 
Superfund program, however, EPA takes a direct role in both enforcement 
and cleanup. This leadership role was originally justified by a 
perceived inability or alleged unwillingness on the part of states to 
perform or oversee cleanups. The situation today is far different.
  The Environmental Law Institute reported last year that States have 
now completed 41,000 cleanups, with another 13,700 in progress. The 
Association of State and Territorial Solid Waste Management Officials 
(ASTSWMO) reports that ``States are not only addressing more sites at 
any given time, but are also completing more sites through streamlined 
State programs. State programs have matured and increased in their 
infrastructure capacity.''
  Most now recognize that states have made great strides in their 
programs, and even EPA in May of 1998 released a ``Plan to Enhance the 
Role of States and Tribes in the Superfund Program.'' Not surprisingly, 
while that plan appears to provide some increased opportunities for 
state leadership, it also envisions a significant, on-going role for 
EPA.
  The Superfund Program Completion Act, on the other hand, assists, 
recognizes and builds on the growth of state cleanup programs. The SPCA 
also responds to pleas from ASTSWMO, the National Governors Association 
and others to remove the ever-present threat of EPA over-filing and 
third party lawsuits under Superfund when a site is being cleaned up 
under a State program. The SPCA recognizes the fact that States should 
be the leaders in cleaning up hazardous waste sites by:
  Providing $100 million annually for State core and voluntary response 
programs to allow States to build on their impressive record of 
accomplishment in this area.
  Providing finality, except in cases of emergency or at a State's 
request, for cleanups conducted under State law.
  Requiring EPA to work with the States so that sites listed on the NPL 
are those the Governor of the State agrees warrant an NPL listing.
  Mr. President, the legislation we introduce today represents the 
culmination of years of hard work. In the four years I have been 
Chairman of the Superfund Subcommittee, we have heard from more than 
100 witnesses, representing every viewpoint, in an effort to grapple 
with the problems caused by the Superfund law. We have communicated 
with thousands of individuals and organizations who have urged us to 
fix this law.
  Senator Chafee and I have spent long hours with our Democratic 
colleagues on the Environment and Public Works Committee, and with EPA 
Administrator Carol Browner. So far, we and our staffs have devoted 
more than 600 hours to this effort. We have negotiated issues, 
identified areas of agreement, eliminated many areas of controversy, 
and pinpointed those few remaining areas where our differences will 
need to be resolved through the legislative process itself. I look 
forward to working with my colleagues on both sides of the aisle during 
that process.
  Before I close, let me say a few words about taxes. Simply put, there 
are no taxes required to finance this bill, and I will oppose all 
attempts to attach them to it.
  Congress has appropriated more than $20 billion to support EPA's 
Superfund program during the past 19 years. The GAO reports that amount 
includes more than $6 billion of unrecovered ``recoverable costs.'' 
``Recoverable costs'' are taxpayer expenditures that EPA made in 
anticipation of recovering them from individual polluters at sites. 
That sum alone would be sufficient to finance EPA's cleanup efforts 
throughout the life of this reauthorization. Our bill allows those 
funds to be used for cleanup when EPA does recover them. Further, there 
should be no doubt that Congress will continue to appropriate funds 
needed for EPA to finish its job. More taxes are not required to 
finance this bill or to finish the Superfund program.
  During the last two Congresses, I was willing to support the 
reimposition of

[[Page S5755]]

taxes to finance Superfund legislation with major changes in the areas 
of remedy selection and natural resource damages--as well as more 
sweeping liability reforms than are contained in the bill we introduce 
today. There remains a real need for those reforms, and I pledge to 
continue my efforts in that regard.
  The bill we introduce today, however, is designed to achieve all that 
we can under the current Administration. It represents substantial, 
real reform that will help thousands of communities and millions of 
Americans. I urge my colleagues to support it.
  Mr. LOTT. Mr. President, today, I am pleased to join my colleagues 
Senator Bob Smith and Senator. John Chafee in introducing the Superfund 
Program Completion Act. For several years Congress has worked 
diligently to find common ground for all parties involved, common 
ground that will also correct the flaws of the original law. Senator 
Smith's legislation will do just that.
  In 1980, Congress approved the Comprehensive Environmental Response 
Compensation and Liability Act (CERCLA) which was intended to pay for 
the cleanup of the nation's most hazardous waste sites. This law became 
known as Superfund--a bit ironic since the law provides no funding, but 
instead requires those who operated or used the landfill to pay for the 
cleanup.
  There is logic and fairness in requiring the polluters to pay for the 
cleanup; however, Superfund's liability structure was so poorly planned 
excessive litigation was encouraged. Cleanup did not occur and costs 
were passed to small businesses across the nation. Superfund did cause 
unnecessary lawsuits and wasted valuable time, all the while leaving 
sites across America polluted.
  Mr. President, this new legislation by Senators Smith and Chafee 
would exempt those small businesses who acted in good faith and are 
still being dragged into Superfund as third and fourth party defendants 
by simply throwing out their household trash. Superfund does not 
distinguish large from small, nor does it distinguish polluters from 
responsible businesses. In many instances, these business owners did 
nothing wrong. Yet, the law penalizes people for something that at one 
time was legal.
  Virtually all sides agree that some small businesses should have 
never been pulled into the system. While this legislation would not be 
retroactive, it will save small businesses in other communities from 
future Superfund lawsuits. It is important to reward those who have 
acted responsibly. I believe Senator Smith's bill is responsible.
  Mr. President, I do not believe there is one Senator who is pleased 
with the way in which the Superfund statute has operated. Like small 
businesses, recyclers have also been targeted to pay for cleanup. They 
should not be held responsible for pollution at a Superfund site. The 
Administration agrees. A majority of the Congress agrees. The 
environmental community agrees. Senator Smith's bill will fix the 
recycler's problem and remain faithful to the environment.
  Over the past three decades, concern for our environment and natural 
resources has grown--as has the desire to recycle and reuse. This makes 
environmental sense. This legislation would remove an unintended yet 
troublesome legal obstacle to recycling. This bill corrects current law 
and encourages recycling. It simply recognizes that recycling is not 
disposal and that recyclables are not waste. Common sense tells us that 
recycling something is not the same as disposing of it.
  This bill will help level the playing field between the use of 
recycled goods and competitive virgin raw materials. Currently 
suppliers of virgin raw materials face no Superfund liability for 
contamination caused by the consumer. This bill will supply the same 
waiver to those who sell recyclable materials.
  This bill also contains protections to ensure that sham recyclers are 
unable to benefit from this exemption. In order for recyclers to be 
relieved of Superfund liability, they must act in an environmentally 
sound manner and sell their product to manufacturers with 
environmentally responsible business practices. Considering that most 
recyclers are currently operating in a reasonable and conscience 
manner, this should be an easy test.
  Mr. President, the recycling portion of the bill is the product of 
lengthy negotiations between the federal and state governments, the 
environmental community and the recycling industry. It serves only one 
purpose--to remove from the liability loop those who collect and ship 
recyclables to a third party site. These negotiations have resulted in 
a provision that I believe to be both environmentally and fiscally 
sound. By removing the threat of Superfund liability for recyclers, we 
will encourage more recycling.
  Mr. President, while this provision is not precisely the Superfund 
Recycling Equity Act which Senator Daschle and I introduced last year--
a bill which was supported by 63 of our Senate colleagues--I look 
forward to working with all parties to ensure we pass a bill that the 
Administration, environmentalists, and industry can support.
  Mr. President, I will also work with my colleagues to ensure that no 
Superfund taxes will be reinstated. After many years and millions and 
millions of dollars spent by the government, large businesses, 
municipalities, schools, and small businesses, only a fraction of the 
costs has been devoted to cleanup. This cannot continue to happen.
  I have seen a copy of the May 14, 1999, letter from Senators Chafee 
and Smith to the Environmental Protection Agency, and I completely 
agree with its conclusions. There is no need for additional tax 
revenue. I want to quote from their letter because the Senators said it 
just right.
  ``Many responsible parties who have already paid for their own 
cleanups would also be liable for reimposed taxes. They are frankly 
unwilling to see the tax reinstated unless there are sweeping reforms 
in the structure of the program, as well. We find their arguments 
persuasive. We will not vote to reimpose the tax, unless it is part of 
a comprehensive Superfund reform.''
  ``There is a second reason for our opposition to a tax extension at 
this time. As we noted in a recent letter to Administrator Browner, 
Congress has appropriated $15.9 billion for Superfund from its 
inception through 1988. The Superfund Trust Fund was created to 
facilitate rapid cleanups carried out by the federal government's 
expenditures would be recovered from responsible parties once the 
cleanup action was complete. This is real ``polluters pay'' 
principle.''
  ``However, only a small percentage of the $15.9 billion has been 
recovered. To date, the Agency has obtained commitments to recover $2.4 
billion. EPA has written off $5 billion of past expenditures and GAO 
reports that another $1.9 billion is likely unrecoverable because EPA 
did not properly calculate its indirect costs. This is a troubling 
record. A good cost recovery program that actually made the real 
polluters (as opposed to the taxpaying industries) pay could have 
recovered sufficient funds to carry Superfund through another 
authorization cycle without the reimposition of taxes. We are reluctant 
to ask Superfund taxpayers to once again prop up a Trust Fund that EPA 
has allowed to dwindle.''
  Mr. President, I'm very impressed with the Chairman Chafee and 
Chairman Smith have done in getting this bill drafted and introduced. 
They are also working on a second major environmental bill in the waste 
area--RCRA. Last year we jointly requested a report from the GAO on 
what saving and efficiencies can be achieved with rifle shot fixes. 
This year Senators Chafee and Smith have been diligently working on 
finalizing a legislative approach that is compatible to this GAO study. 
I know their staffs have been consulting with all the stakeholders, and 
I look forward to seeing this bill this summer. Hopefully, both bills 
will have a chance to advance through the legislative process so that 
the full Senate can consider them. Both approaches are reforms that 
Americans deserve and need.
  As environmentalists talk about laws which protect the environment, 
Congress must determine who actually bears the burden of cost, and 
determine the balance. Superfund does not discriminate. The way 
Superfund is being implemented, it attacks our neighbors, our schools, 
and even our corner grocers. The Superfund Program Completion Act makes 
positive strides toward

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correcting the balance and reflects society's progress from the 80's 
and incorporates the methods of the 90's.
                                 ______