[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Senate]
[Pages S10442-S10458]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAFEE (for himself and Mr. Smith of New Hampshire):

  S. 1537. A bill to reauthorize and amend the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980; to the 
Committee on Environment and Public Works.


          superfund amendments and reauthorization act of 1999

  Mr. CHAFEE. Mr. President, I rise today to introduce the Superfund 
Amendments and Reauthorization Act of 1999. This bill is based on S. 
1090, the Superfund Program Completion Act of

[[Page S10443]]

1999, a bill that I introduced, along with Senators Smith and Lott, 
earlier this year.
  Last year, the Committee reported a comprehensive Superfund bill to 
the Senate. However, gaining a consensus on a comprehensive bill was 
not possible last year, and the bill was not called up. The most 
controversial issues were cleanup standards, paying ``polluters,'' and 
natural resource damages.
  In S. 1090, we narrowed the scope of the bill greatly to get relief 
now for many parties--small businesses, local governments, municipal 
solid waste contributors--and we did it fairly, while strengthening the 
role of the states.
  Our goal was always to report a bill that enjoyed wide support. 
Unfortunately, Senator Smith and I were not able to move S. 1090 out of 
the committee. We spent several months negotiating with members on both 
sides of the aisle. The bill that Senator Smith and I introduce today 
serves as a record of our progress in trying to craft a broadly-
supported Superfund reform bill.
  The bill contains numerous changes from S. 1090. Some changes were 
made prior to the markup. Others are based on amendments filed for the 
markup, and others in response to negotiations over the last week.
  Our bills retains the key features of S. 1090. 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.
  The bill exempts recyclers, 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. 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.
  Importantly, this liability relief is provided fairly. EPA is 
directed to pay for the shares of exempted parties from a $200 million 
annual orphan share instead of merely shifting the liability onto the 
remaining nonexempt parties. Importantly, responsible parties still 
must proceed with the cleanup if $200 million is insufficient to cover 
all orphan shares in a given year.
  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. Allocation is 
preceded by a period for EPA-directed alternative dispute resolution. 
Parties that do not participate or settle remain liable to Superfund's 
underlying liability provisions, which remain unchanged.
  The bill starts the process of bringing the National Priority List 
cleanup program to an orderly end. EPA notes that cleanup is complete 
or underway at more than 90 percent of the sites on the current NPL. 
EPA is cleaning up the sites at a rate of 85 per year, but it has 
listed only an average of about 26 sites per year. Last year, the 
General Accounting Office surveyed the states and EPA about the 
approximately 3,000 sites identified as 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. The 
Superfund NPL cleanup program is closer to the end of its mission than 
to the beginning. The authorized funding levels in the bill, which 
decrease during the five-year authorization period, are consistent with 
the expected decrease in Superfund's workload.
  The ramp-down of the NPL cleanup program has important implications 
for state cleanup programs. The bill provides $100 million per year for 
state cleanup programs. Therefore, the bill requires EPA to plan how it 
will proceed at the 3,000 sites still awaiting a decision regarding NPL 
listing. Further, under our bill, new listings on the National Priority 
List must be approved by the Governor of the affected state.

  What is most important, 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. We know that the vast 
majority of sites not already listed on the NPL will be cleaned up by 
the states, not EPA. A strong finality provision will give greater 
confidence to prospective developers that state cleanup decisions will 
not be second-guessed by EPA. I would note that the bill includes new 
safeguards, not present in S.1090 as-introduced, to ensure a robust 
federal safety net if a state fails to meet its obligations.
  How does this bill differ from S. 1090? In preparation for the 
markup, members filed several amendments that Senator Smith and I plan 
to accept. Senator Bond filed several amendments to improve the 
brownfields provisions and protect law enforcement activities from 
Superfund liability. Senator Thomas filed an amendment to clarify the 
liability of common carriers and railroad spur track owners. Senator 
Inhofe filed an amendment to encourage the recycling of used oil, and 
another to improve the state cleanup program provisions. Senator Smith 
and I filed an amendment to study the costs of the Superfund program 
over the next ten years. All of these amendments are included in the 
new bill.
  Senator Smith and I have also included an amendment that we filed 
containing narrow provisions in two areas not originally addressed in 
S.1090: natural resource damages, and remedy. We offered the language 
in our negotiations in order to try to accommodate the concerns of 
Republicans members who felt that the scope of the bill was too narrow. 
We felt these provisions would solve most of the concerns that were 
raised without completely reopening the debates on NRD and remedy.
  The new remedy provisions would accomplish three things. First, it 
makes improvements to the system of identifying and applying the 
applicable relevant and appropriate requirements of other federal and 
state laws in Superfund cleanups. Second, the existing statutory 
preference for permanent remedies that use treatment is replaced by a 
preference limited to so-called ``hot spots.'' This comports with EPA's 
current practice, where 70% of all cleanup plans include containment 
instead of removal of the hazardous substance. Finally, new provisions 
establish procedures for the use of facility-specific risk assessments 
and the use of science in decision-making. This provision was closely 
modeled on the recent Safe Drinking Water Act Amendment.
  The new natural resource damages provision makes four significant 
changes to the NRD program.
  First, it provides a clear statement as to what costs a responsible 
party will be required to bear under a natural resource damage claim. A 
responsible party will be liable for only for the reasonable costs of 
restoring the resource--that is for reinstating the human uses and 
environmental functions of the resource.
  Second, it would eliminate recovery for any damages based on the 
nonuse values associated with an injured resource. Proponents of nonuse 
damages have argued that these damages are an important element of 
recovery in cases where a resource like the Grand Canyon is injured or 
destroyed. Our provision addresses this issue more directly. Instead, 
it recognizes that certain resources, such as endangered species, or 
wilderness areas, or certain national monuments are truly unique and 
therefore warrant special consideration. The language provides that 
where a unique resource has been damaged and is irreplaceable, the 
trustees may seek enhanced or expedited restoration.
  Third, it set parameters for determining whether the costs associated 
with a restoration measure are reasonable. Under this bill, the 
reasonableness of the costs will be determined based on four factors: 
technical feasibility, cost-effectiveness, the time period in which 
recovery will be achieved; and whether the response action or natural 
recovery will reinstate the uses of a resource in a reasonable period 
of time. This provision is not intended to require a cost-benefit 
analysis. However, it is intended to require that trustees select cost-
effective restoration measures.

[[Page S10444]]

  Fourth, it clarifies the prohibition against double recovery. It 
would protect responsible parties against claims under section 107(f) 
if damages have already been recovered for the same injury to the same 
resource under CERCLA, State or Tribal law.
  It is clear that we have moved a long way to try to reach an 
accommodation on both the right and the left. Perhaps this new bill can 
serve as the rallying-point if prospects for Superfund improve later in 
the Congress. In closing, I want to thank Senator Smith for his efforts 
on Superfund over the years.
  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. 1537

       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 
     Amendments and Reauthorization 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.
Sec. 304. Treatment of religious, charitable, scientific, and 
              educational organizations as owners or operators.

        TITLE IV--REMEDY SELECTION AND NATURAL RESOURCE DAMAGES

Sec. 401. Selection and implementation of remedial actions.
Sec. 402. Use of risk assessment in remedy selection.
Sec. 403. Natural resource damages.
Sec. 404. Double recovery.

                            TITLE V--FUNDING

Sec. 501. 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) Inclusion.--The term `brownfield facility' includes 
     real property that is contaminated with cocaine, heroin, 
     methamphetamine, or any other controlled substance (as 
     defined in section 102 of the Controlled Substances Act (21 
     U.S.C. 802)), a precursor chemical to a controlled substance, 
     or a residual chemical from the manufacture of a controlled 
     substance.
       ``(C) 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 this 
     title;
       ``(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 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, so as to permit the facility to receive a grant of 
     not to exceed $600,000.
       ``(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).

[[Page S10445]]

       ``(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;
       ``(iii) the person exercised appropriate care with respect 
     to each hazardous substance found at the facility by taking 
     reasonable steps to stop any continuing release, prevent any 
     threatened future release and prevent or limit human or 
     natural resource exposure to any previously released 
     hazardous substance;
       ``(iv) the person provides full cooperation, assistance, 
     and access to persons that are responsible for response 
     actions at the vessel or facility from which there has been a 
     release or threatened release, including the cooperation and 
     access necessary for the installation, integrity, operation, 
     and maintenance of any complete or partial response actions 
     at the vessel or facility;
       ``(v) the person does not impede the effectiveness or 
     integrity of any institutional control employed at the vessel 
     or facility; and
       ``(vi) the person complies with any request for information 
     or administrative subpoena issued by the President under this 
     Act.
       ``(B) Ground water.--With respect to hazardous substances 
     in ground water beneath a person's property solely as a 
     result of subsurface migration in an aquifer from a source or 
     sources outside the property, appropriate care shall not 
     require the person to conduct ground water investigations or 
     to install ground water remediation systems.
       ``(2) Assurances.--The Administrator may--
       ``(A) issue an assurance that no enforcement action under 
     this Act will be initiated against a person described in 
     paragraph (1); and
       ``(B) grant a person described in paragraph (1) protection 
     against a cost recovery or contribution action under section 
     113(f).''.
       (b) National Priorities List.--
       (1) In general.--Section 105 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.--
       (A) In general.--The President shall annually revise the 
     National Priorities List to conform with the amendments made 
     by paragraph (1), based on individual delisting 
     recommendations made by each Regional Administrator of the 
     Environmental Protection Agency.
       (B) Delisted parcels.--In complying with this paragraph, 
     the President shall delist not more than 20 individual 
     parcels of real property from the National Priorities List in 
     any 1 calendar year.
       (c) Conforming Amendment.--Section 107(a) of 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.--

[[Page S10446]]

       ``(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 
     provides full cooperation, assistance, and access 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.
       ``(F) Institutional control.--The person does not impede 
     the effectiveness or integrity of any institutional control 
     employed at the vessel or facility.
       ``(G) Requests; subpoenas.--The person complies with any 
     request for information or administrative subpoena issued by 
     the President under this Act.
       ``(H) 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 an 
     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 
     (2) 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 took 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 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; or

[[Page S10447]]

       ``(B) has been proposed for listing on the National 
     Priorities List, but for which the Administrator has notified 
     the State in writing that the Administrator has deferred 
     final listing of the facility pending completion of a 
     remedial action under State authority at the facility.
       ``(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 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 cleanup conducted under 
     State law.
       ``(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 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.
       ``(4) State reimbursement and certification.--
       ``(A) In general.--On making a finding under this section 
     that a State is unwilling or unable to take appropriate 
     action to address a public health or environmental emergency, 
     the President may require that the State reimburse the 
     Hazardous Substance Superfund for response costs incurred by 
     the United States.
       ``(B) Certification.--On making a finding under this 
     section that a State is unwilling or unable to take 
     appropriate action to address a public health or 
     environmental emergency at 3 separate facilities within any 
     1-year period, the President may notify the Governor of the 
     State that this section shall not apply in the State until 
     the President certifies that the State's cleanup program is 
     adequate to ensure that response actions will protect human 
     health and the environment.''.

     SEC. 202. NATIONAL PRIORITIES LIST COMPLETION.

       (a) In General.--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) 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 the concurrence 
     of the Governor of the State in which the facility is 
     located.''.
       (b) Independent CERCLA Cost Analysis.--
       (1) In general.--From amounts appropriated under section 
     111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)), 
     the Administrator shall fund a cooperative agreement for an 
     independent analysis of the projected 10-year costs for the 
     implementation of the program under that Act.
       (2) Completion.--The independent analysis under paragraph 
     (1) shall be completed not later than 180 days after the date 
     of enactment of this Act.

     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-

[[Page S10448]]

     kind contributions, 10 percent of the costs of--
       ``(i) the remedial action; and
       ``(ii) operation and maintenance costs.
       ``(B) State-operated facilities.--Notwithstanding 
     subparagraph (A), the Administrator may require a State 
     contribution, in cash or in-kind, of 50 percent of the costs 
     of any sums expended in response to a release at a facility 
     that was operated by the State or a political subdivision of 
     the State, either directly or through a contractual 
     relationship or otherwise, at the time of any disposal of 
     hazardous substances therein.
       ``(C) Activities with respect to which state cost share is 
     required.--No State cost share shall be required except for 
     remedial actions under this section.
       ``(D) 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 municipal sewage sludge as 
     part of normal municipal solid waste collection services, 
     and, with respect to each source from which the waste 
     material is collected, qualifies for a de micromis exemption 
     under section 107(r).

       ``(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.
       ``(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);
       ``(2) the person is liable based on an arrangement for 
     disposal or treatment of, an arrangement with a transporter 
     for transport for disposal or treatment of, or an acceptance 
     for transport for disposal or treatment at a facility of, 
     municipal solid waste;
       ``(3) the person provides full cooperation, assistance, and 
     access 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;
       ``(4) the person does not impede the effectiveness or 
     integrity of any institutional control employed at the vessel 
     or facility;
       ``(5) the person complies with any request for information 
     or administrative subpoena issued by the President under this 
     Act; and
       ``(6) 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 liable solely under paragraph (3) or 
     (4) or subsection (a);
       ``(B) 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;
       ``(C) 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;
       ``(D) 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;
       ``(E) the person provides full cooperation, assistance, and 
     access 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;
       ``(F) the person does not impede the effectiveness or 
     integrity of any institutional control employed at the vessel 
     or facility; and
       ``(G) the person complies with any request for information 
     or administrative subpoena issued by the President under this 
     Act.
       ``(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 subsection (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 subsection (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.

[[Page S10449]]

       ``(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) of this subsection, a person who 
     arranged for the recycling of recyclable material or 
     transported such material shall not be liable under 
     paragraphs (3) or (4) of subsection (a) with respect to such 
     material. A determination whether or not any person shall be 
     liable under paragraph (3) or (4) of subsection (a) for any 
     transaction not covered by paragraphs (2) and (3), (4), or 
     (5) of this subsection shall be made, without regard to 
     paragraphs (2), (3), (4) and (5) of this subsection, on a 
     case-by-case basis, based on the individual facts and 
     circumstances of such transaction.
       ``(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--
       ``(A) shipping containers with 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; or
       ``(B) any item of material containing polychlorinated 
     biphenyls (PCBs) in excess of 50 parts per million (ppm) or 
     any new standard promulgated pursuant to applicable Federal 
     laws.
       ``(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 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--

[[Page S10450]]

       ``(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; or
       ``(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).
       ``(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.
       ``(D) Limitation on statutory construction.--Nothing in 
     this subsection--
       ``(i) affects any rights, defenses, or liabilities under 
     section 107(a) of any person with respect to any transaction 
     involving any material other than a recyclable material 
     subject to paragraph (1) of this subsection; or
       ``(ii) relieves a plaintiff of the burden of proof that the 
     elements of liability under section 107(a) are met under the 
     particular circumstances of any transaction for which 
     liability is alleged.
       ``(v) Recycling Transactions Involving Used Oil.--
       ``(1) Definition of used oil.--In this subsection, the term 
     `used oil' has the meaning given the term in section 1004 of 
     the Solid Waste Disposal Act (42 U.S.C. 6903), except that 
     the term--
       ``(A) includes any synthetic oil; and
       ``(B) does not include an oil that is subject to regulation 
     under section 6(e)(10)(A) of the Toxic Substances Control Act 
     (15 U.S.C. 2605(e)(10)(A)).
       ``(2) Transactions involving used oil.--Transactions 
     involving recyclable material that consists of used oil shall 
     be considered to be arranging for recycling if the person 
     that arranged for the transaction (by selling recyclable 
     material or otherwise arranging for the recycling of 
     recyclable material)--
       ``(A) did not mix the recyclable material with a hazardous 
     substance following the removal of the used oil from service; 
     and
       ``(B) demonstrates by a preponderance of the evidence 
     that--
       ``(i) at the time of the transaction, the recyclable 
     material was sent to a facility that recycled used oil by 
     using it as a feedstock for the manufacture of a new saleable 
     product; or
       ``(ii)(I) at the time of the transaction, the recyclable 
     material or the product to be made from the recyclable 
     material could have been a replacement or substitute, in 
     whole or in part, for a virgin raw material;
       ``(II) in the case of a transaction occurring on or after 
     the date that is 90 days after the date of enactment of this 
     section, the person exercised reasonable care to determine 
     that the facility where the recyclable material would be 
     handled, processed, reclaimed, or otherwise managed by 
     another person was in compliance with substantive provisions 
     of any Federal, State, or local environmental law (including 
     a regulation promulgated or a compliance order or decree 
     issued under the law) that is applicable to the handling, 
     processing, reclamation, storage, or other management 
     activities associated with the recyclable material; and
       ``(III) the person was in compliance with any regulations 
     or standards for the management of used oil promulgated under 
     the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) that 
     were in effect on the date of the transaction.
       ``(3) Reasonable care.--For purposes of this subsection, 
     reasonable care shall be determined using criteria that 
     include--
       ``(A) the price paid in the recycling transaction;
       ``(B) 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; and
       ``(C) 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 provisions of any Federal, State, 
     or local environmental law (including a regulation 
     promulgated or a compliance order or decree issued under the 
     law), applicable to the handling, processing, reclamation, 
     storage, or other management activities associated with 
     recyclable material.
       ``(w) Limitation of Liability of Railroad Owners.--
       ``(1) In general.--Notwithstanding subsection (a), a person 
     that substantially complies with paragraph (2) with respect 
     to a facility shall not be liable under this Act to the 
     extent that liability is based solely on the status of the 
     person as a railroad owner or operator of a spur track 
     (including a spur track over land subject to an easement), to 
     a facility that is owned or operated by a person that is not 
     affiliated with the railroad owner or operator, if--
       ``(A) the spur track provides access to a main line or 
     branch line track that is owned or operated by the railroad;
       ``(B) the spur track is not more than 10 miles long; and
       ``(C) the railroad owner or operator does not cause or 
     contribute to a release or threatened release at the spur 
     track.
       ``(2) Requirements for limitation of liability.--The 
     requirement of this paragraph is that--
       ``(A) to the extent that the person has operational control 
     over a facility--
       ``(i) the person provides full cooperation to, assistance 
     to, and access to the facility by, 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
       ``(ii) the person takes no action to impede the 
     effectiveness or integrity of any institutional control 
     employed under section 121 at the facility; and
       ``(B) the person complies with any request for information 
     or administrative subpoena issued by the President under this 
     Act.
       ``(x) Religious, Charitable, Scientific, and Educational 
     Organizations.--
       ``(1) Limitation on liability.--Subject to paragraph (2), 
     if an organization described in section 101(20)(I) holds 
     legal or equitable title to a vessel or facility as a result 
     of a charitable gift that is allowable as a deduction under 
     section 170, 2055, or 2522 of the Internal Revenue Code of 
     1986 (determined without regard to dollar limitations), the 
     liability of the organization shall be limited to the lesser 
     of the fair market value of the vessel or facility or the 
     actual proceeds of the sale of the vessel or facility 
     received by the organization.
       ``(2) Conditions.--In order for an organization described 
     in section 101(20)(I) to be eligible for the limited 
     liability described in paragraph (1), the organization 
     shall--
       ``(A) substantially comply with the requirement of 
     subsection (y) with respect to the vessel or facility;

[[Page S10451]]

       ``(B) provide full cooperation and assistance to the United 
     States in identifying and locating persons who recently 
     owned, operated, or otherwise controlled activities at the 
     vessel or facility;
       ``(C) establish by a preponderance of the evidence that all 
     active disposal of hazardous substances at the vessel or 
     facility occurred before the organization acquired the vessel 
     or facility; and
       ``(D) establish by a preponderance of the evidence that the 
     organization did not cause or contribute to a release or 
     threatened release of hazardous substances at the vessel or 
     facility.
       ``(3) Limitation.--Nothing in this subsection affects the 
     liability of a person other than a person described in 
     section 101(20)(I) that meets the conditions specified in 
     paragraph (2).''.
       (2) Transition rules.--
       (A) In general.--The exemptions under subsections (q), (r), 
     (s), (v), and (w) 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 administrative 
     settlement or 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--

       ``(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

[[Page S10452]]

     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 initiate an impartial 
     fare share allocation, conducted by a neutral third party, at 
     National Priorities List facilities, if--
       ``(A) there is more than 1 potentially responsible party 
     that is not--
       ``(i) eligible for an exemption or limitation under 
     subsection (q), (r), (s), (t), (u), (v), (w), or (x) of 
     section 107;
       ``(ii) eligible for a settlement under subsection (g); or
       ``(iii) insolvent, bankrupt, or defunct; and
       ``(B) 1 or more of the potentially responsible parties 
     agree to bear the costs of the allocation (which shall be 
     considered to be response costs under this Act) under such 
     conditions as the President may prescribe.
       ``(2) Pre-allocation settlements.--
       ``(A) In general.--Before initiating the allocation, the 
     President may--
       ``(i) provide a 90-day period of negotiation; and
       ``(ii) extend the period of negotiation described in clause 
     (i) for an additional 90 days.
       ``(B) Alternative dispute resolution.--The President may 
     use the services of an alternative dispute resolution neutral 
     to assist in negotiations.
       ``(C) Settlement.--On expiration of a negotiation period 
     described in subparagraph (A), the President may offer to 
     settle the liability of 1 or more of the parties.
       ``(D) Response action.--
       ``(i) In general.--As a condition of a settlement under 
     this subsection, the President may require 1 or more parties 
     to conduct a response action at the facility.
       ``(ii) Funding and costs.--An agreement for a required 
     response action described in clause (i) may include mixed 
     funding under this section, including the forgiveness of past 
     costs.
       ``(3) Expedited allocation.--
       ``(A) In general.--At the request of any party subject to 
     the allocation, the allocator may first accept the 
     President's estimate of the statutory orphan share specified 
     under subsection (o).
       ``(B) Settlement based on statutory orphan share.--The 
     President may offer to settle the liability of any party 
     based on--
       ``(i) the statutory orphan share as accepted by the 
     allocator;
       ``(ii) the party's pro rata share of the statutory orphan; 
     and
       ``(iii) other terms and conditions acceptable to the United 
     States.
       ``(4) Factors.--In conducting an allocation under this 
     subsection, the allocator, 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.
       ``(5) Scope.--A fair share allocation under this subsection 
     shall include any response costs at a National Priorities 
     List facility that are not addressed in an administrative 
     settlement or a settlement or a judgment approved by a United 
     States Federal District Court.
       ``(6) 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.
       ``(C) Joint rejection.--The President and the Attorney 
     General may jointly reject an allocation report, in writing, 
     if--
       ``(i) the allocation does not provide a basis for 
     settlement that is fair, reasonable, and consistent with the 
     objectives of this Act; or
       ``(ii) the allocation process was directly and 
     substantially affected by bias, procedural error, fraud, or 
     unlawful conduct.
       ``(D) Subsequent allocation.--
       ``(i) In general.--If the Administrator and the Attorney 
     General jointly reject an allocation report under 
     subparagraph (C), the President shall initiate another 
     impartial fair share allocation.
       ``(ii) Costs.--The United States shall bear 50 percent of 
     the costs of a subsequent allocation if an initial allocation 
     is rejected under subparagraph (C)(i).
       ``(7) 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), (u), (v), (w), or 
     (x) of section 107 or subsection (g) of this section.
       ``(8) Savings.--The President may use the authority under 
     this section to enter into settlement agreements with respect 
     to any response action that is the subject of an allocation 
     at any time.
       ``(9) Effect on principles of liability.--Except as 
     provided in paragraph (4), the authorization of an allocation 
     process under this section shall not modify or affect the 
     principles of liability under this title as determined by the 
     courts of the United States.
       ``(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), (u), (v), (w), or (x) of section 107 or subsection 
     (g) of this section; and
       ``(B) the President's estimate of the liability of the 
     party, notwithstanding any exemption from or limitation on 
     liability in this Act, for response costs that are not 
     addressed in an administrative settlement or a settlement or 
     judgment approved by a United States district court.
       ``(2) Determination of statutory orphan shares.--The 
     President shall include an estimate of the statutory orphan 
     share of a party described in section 107(t) or subsection 
     (g) of this section, 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 
     subsections (q), (s), and (u) of section 107 that is 
     otherwise liable at a facility for costs addressed 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.--An administrative settlement, or a 
     judicially-approved consent decree or settlement, shall 
     identify the statutory orphan share owing if the consent 
     decree or settlement includes all funding necessary to 
     complete remedial project construction for the last operable 
     unit at the facility.

[[Page S10453]]

       ``(B) Funding and reimbursement.--A consent decree or 
     settlement described in subparagraph (A) shall include 
     funding of statutory orphan shares in accordance with this 
     section to the extent funds are available.
       ``(C) Facilities under unilateral order only.--
       ``(i) In general.--At a facility proceeding under an order 
     under section 106(a) that includes all funding necessary to 
     complete remedial project construction for the last operable 
     unit at the facility, if the order has been issued to 1 or 
     more parties, and all other potentially responsible parties 
     not subject to the order at the facility are described in 
     subsection (q), (r), (s), (t), (u), (v), (w), or (x) of 
     section 107 or subsection (g) of this section or are 
     insolvent, bankrupt, or defunct, the Administrator shall, on 
     petition by the party performing under section 106(b), 
     calculate the statutory orphan share for the facility.
       ``(ii) Payment.--Payment of any statutory orphan share 
     under this subparagraph shall be made in accordance with 
     subsection (p)(2)(J), as if the parties had settled.
       ``(p) General Provisions Applicable to Statutory Orphan 
     Shares and Fair Share Settlements.--
       ``(1) In general.--A fair share settlement under subsection 
     (n) and a statutory orphan share under subsection (o) 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 
     section 107(t) and subsection (g) of this section 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, 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 statutory orphan share funding 
     and partial reimbursement payments to a party on a schedule 
     that ensures an equitable distribution of payments to all 
     eligible parties on a timely basis.
       ``(ii) Priority.--The priority for partial payments shall 
     be based on the length of time that has passed since the 
     payment obligation arose.
       ``(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, 
     subsection (g), or section 107(t) shall provide complete 
     protection from all claims for contribution or cost recovery 
     for response costs that are addressed in the settlement.
       ``(ii) Costs beyond scope of allocation.--In the case of 
     response costs at a facility that, as a result of a prior, 
     administrative or 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), (u), 
     (v), (w), or (x) of section 107; or
       ``(II) a party that has settled its liability under section 
     107(t) or subsection (g) of this section.

       ``(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), subsection (g), or section 107(t), 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), 
     (u), (v), (w), and (x) of section 107 and subsection (g) of 
     this section 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) 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 (g) or section 107(t) 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 
     that settles its liability under subsection (n) or section 
     107(t) for response costs incurred in performing a response 
     action that exceed the amount of a settlement approved under 
     subsection (n) or section 107(t).
       ``(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), (u), (v), (w) or (x) of section 
     107 or subsection (g) of this section 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.
       (c) Technical Amendment.--Section 106(b)(1) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9706(b)(1)) is amended by 
     adding at the end the following: `The conduct or approval of 
     an allocation of liability under this Act, including any 
     settlement of liability with a party based on the allocation, 
     shall not constitute sufficient cause for any party 
     (including a party that settled its liability based on the 
     allocation) to willfully violate, or fail or refuse to comply 
     with, any order of the President under subsection (a).''.
       (d) Law Enforcement Agencies Not Included as Owner or 
     Operator.--Section 101(20)(D) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(20(D)) is amended by inserting after 
     ``or control'' the following: ``through seizure or otherwise 
     in connection with law enforcement activity, or''.
       (e) Common Carriers.--Section 107(b)(3) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607(b)(3)) is amended by 
     striking ``a published tariff and acceptance'' and inserting 
     ``a contract''.

[[Page S10454]]

     SEC. 304. TREATMENT OF RELIGIOUS, CHARITABLE, SCIENTIFIC, AND 
                   EDUCATIONAL ORGANIZATIONS AS OWNERS OR 
                   OPERATORS.

       Section 101(20) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(20)) is amended by adding at the end the following:
       ``(H) Religious, charitable, scientific, and educational 
     organizations.--The term `owner or operator' includes an 
     organization described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 that is organized and operated 
     exclusively for religious, charitable, scientific, or 
     educational purposes and that holds legal or equitable title 
     to a vessel or facility.''.
        TITLE IV--REMEDY SELECTION AND NATURAL RESOURCE DAMAGES

     SEC. 401. SELECTION AND IMPLEMENTATION OF REMEDIAL ACTIONS.

       (a) Preference for Treatment.--Section 121(b) of the 
     Comprehensive Environmental Response Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9621(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Preference for treatment.--
       ``(A) In general.--For any discrete area containing a 
     principal hazardous constituent of a hazardous substance, 
     pollutant, or contaminant that, based on site specific 
     factors, presents a substantial risk to human health or the 
     environment because of--
       ``(i) the high toxicity of the principal hazardous 
     constituent; or
       ``(ii) the high mobility of the principal hazardous 
     constituent;

     the remedy selection process shall include a preference for a 
     remedial action that includes treatment that reduces the risk 
     posed by the principal hazardous constituent over remedial 
     actions that do not include such treatment.
       ``(B) Final containment.--With respect to a discrete area 
     described in subparagraph (A), the President may select a 
     final containment remedy at a landfill or mining site or 
     similar facility if--
       ``(i)(I) the discrete area is small relative to the overall 
     volume of waste or contamination being addressed;
       ``(II) the discrete area is not readily identifiable and 
     accessible; and
       ``(III) without the presence of the discrete area, 
     containment would have been selected as the appropriate 
     remedy under this subsection for the larger body of waste or 
     larger area of contamination in which the discrete area is 
     located; or
       ``(ii) the volume and size of the discrete area is 
     extraordinary compared to other facilities listed on the 
     National Priorities List, and, because of the volume, size, 
     and other characteristics of the discrete area, it is highly 
     unlikely that any treatment technology will be developed that 
     could be implemented at a reasonable cost.''.
       (b) Compliance With Federal and State Laws.--Section 
     121(d)(2) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(d)(2)) is amended by striking subparagraph (C) and 
     inserting the following:
       ``(C) Compliance with federal and state laws.--
       ``(i) Applicable requirements.--

       ``(I) In general.--Subject to clause (iii), a remedial 
     action shall require, at the completion of the remedial 
     action, a level or standard of control for each hazardous 
     substance, pollutant, and contaminant that at least attains 
     the substantive requirements of all promulgated standards, 
     requirements, criteria, and limitations, under--

       ``(aa) each Federal environmental law, that are legally 
     applicable to the conduct or operation of the remedial action 
     or to the level of cleanup for hazardous substances, 
     pollutants, or contaminants addressed by the remedial action;
       ``(bb) any State environmental or facility siting law, that 
     are more stringent than any Federal standard, requirement, 
     criterion, or limitation and are legally applicable to the 
     conduct or operation of the remedial action or to the level 
     of cleanup for hazardous substances, pollutants, or 
     contaminants addressed by the remedial action, and that the 
     State demonstrates are of general applicability, publishes 
     and identifies to the President in a timely manner as being 
     applicable to the remedial action, and has consistently 
     applied to other remedial actions in the State; and
       ``(cc) any more stringent standard, requirement, criterion, 
     or limitation relating to an environmental or facility siting 
     law promulgated by the State after the date of enactment of 
     the Superfund Amendments and Reauthorization Act of 1999 that 
     the State demonstrates is of general applicability, publishes 
     and identifies to the President in a timely manner as being 
     applicable to the remedial action, and has consistently 
     applied to other remedial actions in the State.

       ``(II) Contaminated media.--Compliance with substantive 
     provisions of section 3004 of the Solid Waste Disposal Act 
     (42 U.S.C. 6924) shall not be required with respect to 
     return, replacement, or disposal of contaminated media 
     (including residuals of contaminated media and other solid 
     wastes generated onsite in the conduct of a remedial action) 
     into the same media in or very near then-existing areas of 
     contamination onsite at a facility.

       ``(ii) Applicability of requirements to response actions 
     conducted onsite.--No procedural or administrative 
     requirement of any Federal, State, or local law (including 
     any requirement for a permit) shall apply to a response 
     action that is conducted onsite at a facility if the response 
     action is selected and carried out in compliance with this 
     section.
       ``(iii) Waiver provisions.--

       ``(I) In general.--The President may select a remedial 
     action at a facility that meets the requirements of 
     subparagraph (B) that does not attain a level or standard of 
     control that is at least equivalent to an applicable 
     requirement described in clause (i)(I) if the President makes 
     any of the following findings:

       ``(aa) Part of remedial action.--The selected remedial 
     action is only part of a total remedial action that will 
     attain the applicable requirements of clause (i)(I) when the 
     total remedial action is completed.
       ``(bb) Greater risk.--Attainment of the requirements of 
     clause (i)(I) will result in greater risk to human health or 
     the environment than alternative options.
       ``(cc) Technical impracticability.--Attainment of the 
     requirements of clause (i)(I) is technically impracticable.
       ``(dd) Equivalent to standard of performance.--The selected 
     remedial action will attain a standard of performance that is 
     equivalent to that required under clause (i)(I) through use 
     of another method or approach.
       ``(ee) Inconsistent application.--With respect to a State 
     requirement made applicable under clause (i)(I), the State 
     has not consistently applied (or demonstrated the intention 
     to apply consistently) the requirement in similar 
     circumstances to other remedial actions in the State.
       ``(ff) Balance.--In the case of a remedial action to be 
     funded predominantly under section 104 using amounts from the 
     Fund, a selection of a remedial action that attains the level 
     or standard of control described in clause (i)(I) will not 
     provide a balance between the need for protection of public 
     health and welfare and the environment at the facility, and 
     the need to make amounts from the Fund available to respond 
     to other facilities that may present a threat to public 
     health or welfare or the environment, taking into 
     consideration the relative immediacy of the threats presented 
     by the various facilities.

       ``(II) Publication.--The President shall publish any 
     findings made under subclause (I), including an explanation 
     and appropriate documentation and an explanation of how the 
     selected remedial action meets the requirements of this 
     section.

       ``(D) No standard.--If no applicable Federal or State 
     standard is established for a specific hazardous substance, 
     pollutant, or contaminant, a remedial action shall attain a 
     standard that the President determines to be protective of 
     human health and the environment.''

     SEC. 402. USE OF RISK ASSESSMENT IN REMEDY SELECTION.

       (a) In General.--Section 121(a) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9621(a)) is amended by adding at the end the 
     following: ``In selecting an appropriate remedial action, the 
     President shall conduct and utilize a facility-specific risk 
     evaluation in accordance with section 129.''.
       (b) Facility-Specific Risk Evaluations.--Title I of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) (as amended by 
     section 201(b)) is amended by adding at the end the 
     following:

     ``SEC. 129. FACILITY-SPECIFIC RISK EVALUATIONS.

       ``(a) In General.--The goal of a facility-specific risk 
     evaluation performed under this Act is to provide informative 
     and understandable estimates that neither minimize nor 
     exaggerate the current or potential risk posed by a facility.
       ``(b) Risk Evaluation Principles.--
       ``(1) In general.--A facility-specific risk evaluation 
     shall--
       ``(A)(i) use chemical-specific and facility-specific data 
     in preference to default assumptions whenever it is 
     practicable to obtain such data; or
       ``(ii) if it is not practicable to obtain such data, use a 
     range and distribution of realistic and scientifically 
     supportable default assumptions;
       ``(B) ensure that the exposed population and all current 
     and potential pathways and patterns of exposure are 
     evaluated;
       ``(C) consider the current or reasonably anticipated future 
     use of the land and water resources in estimating exposure; 
     and
       ``(D) consider the use of institutional controls that 
     comply with the requirements of section 121.
       ``(2) Criteria for use of science.--Any chemical-specific 
     and facility-specific data or default assumptions used in 
     connection with a facility-specific risk evaluation shall be 
     consistent with the criteria for the use of science in 
     decisionmaking stated in subsection (e).
       ``(3) Institutional controls.--In conducting a risk 
     assessment to determine the need for remedial action, the 
     President may consider only institutional controls that are 
     in place at the facility at the time at which the risk 
     assessment is conducted.
       ``(c) Uses.--A facility-specific risk evaluation shall be 
     used to--
       ``(1) determine the need for remedial action;
       ``(2) evaluate the current and potential hazards, 
     exposures, and risks at the facility;
       ``(3) screen out potential contaminants, areas, or exposure 
     pathways from further study at a facility;

[[Page S10455]]

       ``(4) evaluate the protectiveness of alternative remedial 
     actions proposed for a facility;
       ``(5) demonstrate that the remedial action selected for a 
     facility is capable of protecting human health and the 
     environment considering the current and reasonably 
     anticipated future use of the land and water resources; and
       ``(6) establish protective concentration levels if no 
     applicable requirement under section 121(d)(2)(c) exists or 
     if an otherwise applicable requirement is not sufficiently 
     protective of human health and the environment.
       ``(d) Risk Communication Principles.--In carrying out this 
     section, the President shall ensure that the presentation of 
     information on public health effects is comprehensive, 
     informative, and understandable. The document reporting the 
     results of a facility-specific risk evaluation shall specify, 
     to the extent practicable--
       ``(1) each population addressed by any estimate of public 
     health effects;
       ``(2) the expected risk or central estimate of risk for the 
     specific populations;
       ``(3) each appropriate upper-bound or lower-bound estimate 
     of risk;
       ``(4) each significant uncertainty identified in the 
     process of the assessment of public health effects and 
     research that would assist in resolving the uncertainty; and
       ``(5) peer-reviewed studies known to the President that 
     support, are directly relevant to, or fail to support any 
     estimate of public health effects and the methodology used to 
     reconcile inconsistencies in the scientific data.
       ``(e) Use of Science in Decisionmaking.--In carrying out 
     this section, the President shall use--
       ``(1) the best available peer-reviewed science and 
     supporting studies conducted in accordance with sound and 
     objective scientific practices; and
       ``(2) data collected by accepted methods or best available 
     methods (if the reliability of the method and the nature of 
     the decision justifies use of the data).
       ``(f) Regulations.--Not later than 18 months after the date 
     of enactment of this section, the President shall issue a 
     final regulation implementing this section.''.

     SEC. 403. NATURAL RESOURCE DAMAGES.

       Section 107(f)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980, (42 U.S.C. 
     9607(f)(1)), is amended by striking the fifth sentence 
     (beginning ``The measure of damages'') and inserting the 
     following: ``The measure of damages in any action under 
     subsection (a)(4)(C) may include only the reasonable costs 
     of: (i) restoring, replacing or acquiring the equivalent 
     (referred to collectively as ``restoration") of an injured, 
     destroyed or lost natural resource to reinstate the human 
     uses and environmental functions of the natural resource; 
     (ii) providing a substantially equivalent resource during the 
     period of any interim lost use of the injured, destroyed or 
     lost resource to the extent that a substitute resource 
     providing the uses is not otherwise reasonably available; and 
     (iii) assessing the damages. Where a unique resource has been 
     destroyed, lost, or cannot be restored, the measure of 
     damages may include the reasonable costs of expediting or 
     enhancing the restoration of appropriate substitute 
     resources. For purposes of this paragraph, reasonable costs 
     of alternative restoration measures shall be determined based 
     on the following factors: technical feasibility; cost 
     effectiveness; the period of time required for restoration; 
     and whether a response action or natural recovery will 
     reinstate the uses provided by a natural resource within a 
     reasonable period of time.''.

     SEC. 404. DOUBLE RECOVERY.

       Section 107(f)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(f)(1))) is amended by striking the sixth sentence 
     (beginning ``There shall be no'') and inserting the 
     following: ``A person shall not be liable for damages under 
     this paragraph for an injury to, destruction of, or loss of a 
     natural resource, or a loss of the uses provided by the 
     natural resource, that have been recovered under this Act or 
     any other Federal, State or Tribal law for the same injury 
     to, destruction of, or loss of the natural resource or loss 
     of the uses provided by the natural resource.''.
                            TITLE V--FUNDING

     SEC. 501. USES OF HAZARDOUS SUBSTANCE SUPERFUND.

       The Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 is amended by striking sections 111 and 
     112 (9611, 9612) and inserting the following:

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

       ``(a) In General.--
       ``(1) Specific uses.--The President shall use amounts 
     appropriated out of the Hazardous Substance Superfund only--
       ``(A) for the performance of response actions;
       ``(B) to enter into mixed funding agreements in accordance 
     with section 122; and
       ``(C) 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.
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated from the Hazardous Substances 
     Superfund for the purposes specified in paragraph (1), not 
     more than the following amounts:
       ``(A) For fiscal year 2000, $1,165,000,000, of which not 
     more than $200,000,000 shall be used for the purposes set 
     forth in subparagraphs (B) and (C) of paragraph (1).
       ``(B) For fiscal year 2001, $1,165,000,000, of which not 
     more than $200,000,000 shall be used for the purposes set 
     forth in subparagraphs (B) and (C) of paragraph (1).
       ``(C) For fiscal year 2002, $1,120,000,000, of which not 
     more than $200,000,000 shall be used for the purposes set 
     forth in subparagraphs (B) and (C) of paragraph (1).
       ``(D) For fiscal year 2003, $1,075,000,000, of which not 
     more than $200,000,000 shall be used for the purposes set 
     forth in subparagraphs (B) and (C) of paragraph (1). and
       ``(E) For fiscal year 2004, $1,025,000,000, of which not 
     more than $200,000,000 shall be used for the purposes set 
     forth in subparagraphs (B) and (C) of paragraph (1).
       ``(b) Claims Against Hazardous Substance Superfund.--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.
       ``(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.

[[Page S10456]]

       ``(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) 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.
       ``(2) 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).
       ``(3) 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.
       ``(4) 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 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.
       ``(5) Department of justice.--There is authorized to be 
     appropriated to the Attorney General, for enforcement of this 
     Act, $30,000,000 for each of fiscal years 2000 through 2004.
       ``(6) 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. Mr. President, I am pleased to join the 
distinguished chairman of the Committee on Environment and Public Works 
in introducing the Superfund Amendments and Reauthorization Act of 1999 
(SARA). This bill is the result of several months of negotiations in 
the Committee, and reflects input we received from Senators on both 
sides of the aisle, state and local officials, the Administration, 
environmental groups, and the regulated community.
  My colleagues who are familiar with our original bill, S. 1090, will 
notice several changes made in this new legislation.
  Perhaps most significantly, we have added new titles on remedy 
selection and natural resource damages. These new provisions are 
similar to those contained in S. 8, the Superfund Cleanup Acceleration 
Act in the 105th Congress. Some may remember that the Environment and 
Public Works Committee reported S. 8 in May of 1998, but we never were 
able to debate the bill on the Senate floor.
  Our remedy selection provisions are fairly straightforward. We would 
codify EPA's policy on the preference for treatment of principal 
threats, with an exception for sites, such as mining sites, at which 
such a preference would be inappropriate. We require remedies to 
achieve a degree of cleanup that complies with applicable Federal and 
State standards. We also set forth requirements for site specific risk 
assessments.
  On natural resource damages (NRD), we deal with the major issues that 
have been debated over the last 10 years or more. SARA's NRD 
provisions:
  Provide a clear definition of the objective of restoration; require 
costs assessed against responsible parties to be reasonable, based on 
the restoration measure's technical feasibility, cost effectiveness, 
timeliness, and consideration of natural recovery as a restoration 
alternative; prohibit recoveries for so-called ``nonuser'' damages and 
appropriately limit lost use damages; provide for the expedited or 
enhanced restoration of substitute resources where a unique resource 
that cannot be replaced has been destroyed, lost or damaged; provide 
responsible parties with the right to de novo review--or a full trial 
on all aspects of the claims against them; and, preclude double 
recovery against responsible parties.
  In addition to these new titles, we have also made several changes to 
S. 1090 as introduced.
  First, we have increased authorized funding levels in the first two 
years of the five-year period covered by the bill and made the ramp-
down in funding less severe in the final three years.
  Second, we deleted the cap on new NPL listings and revised the 
requirement for removing clean contiguous property parcels from NPL 
listings.
  Third, we made extensive changes to the allocation system to provide 
additional flexibility. We added authorization for early settlements 
without an allocation, as well as an expedited allocation based only on 
an estimate of the orphan share.
  Fourth, we expressly preserve strict, joint and several liability for 
those parties who choose not to participate in a settlement. We also 
ensure that EPA's existing authority to issue orders and engage in 
removal actions is not unduly limited.

[[Page S10457]]

  Mr. President, these modifications have, in my view, improved the 
bill substantially. We are introducing this new bill for the 
information of our colleagues, and in an effort to generate more 
support for this legislation.
  Unfortunately, these revisions to our Superfund bill were not 
sufficient to garner support from a majority of the Members on the 
Committee. That is disappointing to me, and I would urge my colleagues 
to take a good look at the bill we introduce today. It represents 
strong reform of the troubled Superfund program. It will accelerate 
cleanup by injecting greater fairness into the system, providing more 
resources for state and local cleanup efforts, and providing finality 
for decisions made under those state programs.

  Our legislation continues to make major reforms in six areas. 
Specifically, SARA:
  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 CERLA 
Information System (CERCLIS).
  Clearly allocates responsibility between states and EPA for future 
cleanups.
  Protects municipalities, small businesses, 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, SARA 
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, SARA 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 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 appear to have divested resources 
from EPA's fundamental mission--protecting human health and the 
environment from releases of hazardous waste.
  GAO reported last year that 3,000 sites still await a National 
Priorities List decision by EPA. Most of those sites have been in the 
CERCLIS inventory for more than a decade. According to the report, 
however, more than 1,200 of them 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 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.
  Unfortunately, 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 strategy. 
Nonetheless, Congress has an obligation to provide direction and 
assistance to EPA in this effort. The Superfund Amendments and 
Reauthorization Act provides that direction by:
  Requiring EPA to finish evaluating and/or archiving old sites stuck 
in the CERCLIS inventory, thus 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 that 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,

[[Page S10458]]

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 Amendments and Reauthorization Act, on the other hand, 
assists, recognizes, and builds on the growth of state cleanup 
programs. SARA 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. SARA 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 has the strong 
support of the nation's small businesses, Governors, Mayors, and state 
cleanup officials. I urge my colleagues to support it as well.
                                 ______