Common Sense Superfund Liability Relief Act of 1999

Summary: Adds provisions related to defenses to liability of an owner of property acquired after April 15, 1994, to deem a person to have made (under current law, "undertaken") appropriate inquiry into the property's previous ownership and uses if the person establishes that an environmental site assessment was conducted which meets specified requirements (compliance with an American Society for Testing and Materials standard or with standards issued by the Administrator of the Environmental Protection Agency) and the person fulfills certain responsibilities concerning information compilation, exercise of appropriate care with respect to hazardous substances at the facility, and cooperation with those conducting response actions.
Absolves from liability for response actions certain bona fide prospective purchasers or operators of facilities owned by such purchasers to the extent liability at a facility for a release or threat thereof is based solely on ownership or operation of a facility. Gives a lien upon a facility to the United States in any case in which there are unrecovered response costs not inconsistent with the National Contingency Plan incurred by the United States for which the owner is not liable by reason of this section and the action increases the facility's fair market value.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Common Sense Superfund Liability 
Relief Act of 1999''.

SEC. 2. SMALL PARTY LIABILITY RELIEF UNDER SUPERFUND.

    (a) Liability Exemption.--Section 107 of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9607) is amended by adding at the end the following new 
subsection:
    ``(o) Small Party Liability Relief.--(1) Notwithstanding paragraphs 
(1) through (4) of subsection (a), a person who does not impede the 
performance of a response action or natural resource restoration at a 
facility or vessel shall not be liable to the extent liability at such 
facility or vessel is based solely on paragraph (3) or (4) of 
subsection (a), and the person arranged for disposal, treatment, or 
transport for disposal or treatment of only municipal solid waste or 
sewage sludge owned or possessed by such person, or accepted for 
transport for disposal or treatment only municipal solid waste or 
sewage sludge, and the person is--
            ``(A) the owner, operator, or lessee of the residential 
        property which is the source of the municipal solid waste or 
        sewage sludge;
            ``(B) a small business; or
            ``(C) a small non-profit organization.
    ``(2) This subsection shall have no effect on the liability of any 
other person.''.
    (b) Small Business Defined.--Section 101 of such Act (42 U.S.C. 
9601) is amended by adding at the end the following new paragraph:
            ``(39) Small business.--The term `small business' refers to 
        any business entity that employs no more than 100 individuals 
        and is a `small business concern' as defined under the Small 
        Business Act (15 U.S.C. 631 et seq.).''.

SEC. 3. INNOCENT LANDOWNERS.

    (a) Environmental Site Assessment.--Section 107 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9607) is further amended by adding at the end the 
following new subsection:
    ``(p) Innocent Landowners.--
            ``(1) Conduct of environmental assessment.--A person who 
        has acquired real property after April 15, 1994, shall have 
        made all appropriate inquiry within the meaning of subparagraph 
        (B) of section 101(35) only if such person establishes that, 
        within 180 days prior to the time of acquisition, an 
        environmental site assessment of the real property was 
        conducted which meets the requirements of paragraph (2).
            ``(2) Definition of environmental site assessment.--For 
        purposes of this subsection, the term `environmental site 
        assessment' means an assessment conducted in accordance with 
        the standards set forth in the American Society for Testing and 
        Materials (ASTM) Standard E1527-94, titled `Standard Practice 
        for Environmental Site Assessments: Phase I Environmental Site 
        Assessment Process' or with alternative standards issued by 
        rule by the Administrator or promulgated or developed by others 
        and designated by rule by the Administrator. Before issuing or 
        designating alternative standards, the Administrator shall 
        first conduct a study of commercial and industrial practices 
        concerning environmental site assessments in the transfer of 
        real property in the United States. Any such standards issued 
        or designated by the Administrator shall also be deemed to 
        constitute commercially reasonable and generally accepted 
        standards and practices for purposes of this title. In issuing 
        or designating any such standards, the Administrator shall 
        consider requirements governing each of the following:
                    ``(A) Interviews of owners, operators, and 
                occupants of the property to determine information 
                regarding the potential for contamination.
                    ``(B) Review of historical sources as necessary to 
                determine previous uses and occupancies of the property 
                since the property was first developed. For purposes of 
                this subparagraph, the term `historical sources' means 
                any of the following, if they are reasonably 
                ascertainable: recorded chain of title documents 
                regarding the real property, including all deeds, 
                easements, leases, restrictions, and covenants, aerial 
                photographs, fire insurance maps, property tax files, 
                USGS 7.5 minutes topographic maps, local street 
                directories, building department records, zoning/land 
                use records, and any other sources that identify past 
                uses and occupancies of the property.
                    ``(C) Determination of the existence of recorded 
                environmental cleanup liens against the real property 
                which have arisen pursuant to Federal, State, or local 
                statutes.
                    ``(D) Review of reasonably ascertainable Federal, 
                State, and local government records of sites or 
                facilities that are likely to cause or contribute to 
                contamination at the real property, including, as 
                appropriate, investigation reports for such sites or 
                facilities; records of activities likely to cause or 
                contribute to contamination at the real property, 
                including landfill and other disposal location records, 
                underground storage tank records, hazardous waste 
                handler and generator records and spill reporting 
                records; and such other reasonably ascertainable 
                Federal, State, and local government environmental 
                records which could reflect incidents or activities 
                which are likely to cause or contribute to 
                contamination at the real property.
                    ``(E) A visual site inspection of the real property 
                and all facilities and improvements on the real 
                property and a visual inspection of immediately 
                adjacent properties, including an investigation of any 
                hazardous substance use, storage, treatment, and 
                disposal practices on the property.
                    ``(F) Any specialized knowledge or experience on 
                the part of the landowner.
                    ``(G) The relationship of the purchase price to the 
                value of the property if uncontaminated.
                    ``(H) Commonly known or reasonably ascertainable 
                information about the property.
                    ``(I) The obviousness of the presence or likely 
                presence of contamination at the property, and the 
                ability to detect such contamination by appropriate 
                investigation.
        If a copy or reasonable facsimile of a record is publicly 
        available by request (within reasonable time and cost 
        constraints) and the record is practically reviewable, the 
        record shall be considered to be reasonably ascertainable for 
        purposes of this paragraph.
            ``(3) Appropriate inquiry.--A person shall not be treated 
        as having made all appropriate inquiry under paragraph (1) 
        unless--
                    ``(A) the person has maintained a compilation of 
                the information reviewed and gathered in the course of 
                the environmental site assessment;
                    ``(B) the person exercised appropriate care with 
                respect to hazardous substances found at the facility 
                by taking reasonable steps to stop on-going releases, 
                prevent threatened future releases of hazardous 
                substances, and prevent or limit human or natural 
                resource exposure to hazardous substances previously 
                released into the environment; and
                    ``(C) the person provides full cooperation, 
                assistance, and facility access to persons authorized 
                to conduct response actions or natural resource 
                restoration at the facility, including the cooperation 
                and access necessary for the installation, integrity, 
                operation, and maintenance of any complete or partial 
                response action or natural resource restoration at the 
                facility.''.
    (b) Exception.--Section 107(b)(3)(a) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9606(b)(3)(a)) is amended by inserting ``(except as provided in 
subsection (p))'' after ``exercised due care''.
    (c) Conforming Amendments.--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), by striking ``, unless the real 
        property'' and inserting ``. A defendant owner or operator of a 
        facility may only assert under section 107(b)(3) that an act or 
        ommission of a previous owner or operator of that facility did 
        not occur in connection with a contractual relationship if the 
        real property''; and
            (2) in subparagraph (B)--
                    (A) by inserting ``(as specified in section 
                107(p))'' after ``all appropriate inquiry''; and
                    (B) by striking ``For purposes of the preceding 
                sentence'' and inserting ``For purposes of the 
                application of the preceding sentence to acquisitions 
                occurring on or before April 15, 1994,''.

SEC. 4. LIMITATIONS ON LIABILITY FOR RESPONSE COSTS FOR PROSPECTIVE 
              PURCHASERS.

    (a) Limitations on Liability.--Section 107 of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9607) is further amended by adding at the end the following new 
subsection:
    ``(q) Limitations on Liability for Prospective Purchasers.--To the 
extent the liability of a person, with respect to a release or the 
threat of a release from a facility, is based solely on subsection 
(a)(1), the person shall not be liable under this Act if the person--
            ``(1) is a bona fide prospective purchaser of the facility 
        or an operator of a facility owned by such a bona fide 
        prospective purchaser;
            ``(2) does not impede the performance of any response 
        action or natural resource restoration at a facility;
            ``(3) provided all legally required notices with respect to 
        the discovery or release of any hazardous substances at the 
        facility;
            ``(4) exercised appropriate care with respect to hazardous 
        substances found at the facility by taking reasonable steps 
        to--
                    ``(A) stop ongoing releases;
                    ``(B) prevent threatened future releases of 
                hazardous substances; and
                    ``(C) prevent or limit human or natural resource 
                exposure to hazardous substances previously released 
                into the environment;
            ``(5) provides full cooperation, assistance, and facility 
        access to such persons as are authorized to conduct response 
        actions at the facility, including the cooperation and access 
        necessary for the installation, integrity, operation, and 
        maintenance of any complete or partial response action at the 
        facility; and
            ``(6) is not liable, or is not affiliated with any other 
        person that is liable, for response costs at the facility, 
        through any direct or indirect familial relationship, or any 
        contractual, corporate, or financial relationship other than 
        that created by the instruments by which title to the facility 
        is conveyed or financed.''.
    (b) Prospective Purchaser and Windfall Lien.--Section 107 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (as amended by subsection (a)) is amended by adding after 
subsection (q) the following new subsection:
    ``(r) Prospective Purchaser and Windfall Lien.--
            ``(1) In general.--In any case in which the United States 
        has incurred unrecovered costs of response not inconsistent 
        with the National Contingency Plan at a facility for which an 
        owner of the facility is not liable by reason of subsection 
        (q), and the conditions described in paragraph (3) are met, the 
        United States shall have a lien on the facility, or may obtain, 
        from the appropriate responsible party or parties, a lien on 
        other property or other assurances of payment satisfactory to 
        the Administrator, for the unrecovered costs.
            ``(2) Amount; duration.--The lien--
                    ``(A) shall be for an amount not to exceed the 
                lesser of the amount of the United States costs of 
                response not inconsistent with the National Contingency 
                Plan or the amount of the increase in fair market value 
                of the property attributable to the response action at 
                the time of a subsequent sale or other disposition of 
                the property;
                    ``(B) shall arise at the time costs are first 
                incurred by the United States with respect to a 
                response action at the facility;
                    ``(C) shall be subject to the requirements for 
                notice and validity specified in subsection (l)(3); and
                    ``(D) shall continue until the earlier of 
                satisfaction of the lien or recovery of all United 
                States costs of response not inconsistent with the 
                National Contingency Plan incurred at the facility, 
                notwithstanding any statute of limitations provided in 
                section 113.
        Nothing in this subsection prevents the United States and a 
        purchaser from entering into a settlement at any time that 
        extinguishes a lien under this subsection.
            ``(3) Conditions.--The conditions referred to in paragraph 
        (1) are the following:
                    ``(A) Response action.--An action for which the 
                United States has incurred unrecovered costs of 
                response not inconsistent with the National Contingency 
                Plan is carried out at the facility.
                    ``(B) Fair market value.--The response action 
                increases the fair market value of the facility.''.
    (c) 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:
            ``(40) Bona fide prospective purchaser.--The term `bona 
        fide prospective purchaser' means a person who acquires 
        ownership of a facility after the date of enactment of the 
        Common Sense Superfund Liability Relief Act of 1999 who can 
        establish each of the following by a preponderance of the 
        evidence:
                    ``(A) Disposal prior to acquisition.--All active 
                disposal of hazardous substances at the facility 
                occurred before the person acquired the facility.
                    ``(B) Inquiry.--
                            ``(i) In general.--The person made all 
                        appropriate inquiry as provided in section 
                        101(35)(B) into the previous ownership and uses 
                        of the facility in accordance with generally 
                        accepted good commercial and customary 
                        standards and practices.
                            ``(ii) Standards.--The ASTM standards 
                        described in section 107(p)(2) or the 
                        alternative standards issued or designated by 
                        the President pursuant to that section shall 
                        satisfy the requirements of this subparagraph.
                            ``(iii) Residential property.--In the case 
                        of property in residential or other similar use 
                        at the time of purchase by a nongovernmental or 
                        noncommercial entity, a site inspection and 
                        title search that reveal no basis for further 
                        investigation shall satisfy the requirements of 
                        this subparagraph.''.
                    ``(C) Notices.--The person provided all legally 
                required notices with respect to the discovery or 
                release of any hazardous substances at the facility.
                    ``(D) Care.--The person exercised appropriate care 
                with respect to hazardous substances found at the 
                facility by taking reasonable steps to--
                            ``(i) stop ongoing releases;
                            ``(ii) prevent threatened future releases 
                        of hazardous substances; and
                            ``(iii) prevent or limit human or natural 
                        resource exposure to hazardous substances 
                        previously released into the environment.
                    ``(E) Cooperation, assistance, and access.--The 
                person provides full cooperation, assistance, and 
                facility access to such persons as are authorized to 
                conduct response actions at the facility, including the 
                cooperation and access necessary for the installation, 
                integrity, operation, and maintenance of any complete 
                or partial response action at the facility.
                    ``(F) Relationship.--The person is not liable, or 
                is not affiliated with any other person that is 
                potentially liable, for response costs at the facility, 
                through any direct or indirect familial relationship, 
                or any contractual, corporate, or financial 
                relationship other than that created by the instruments 
                by which title to the facility is conveyed or 
                financed.''.