Superfund Recycling Equity Act of 1994

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Superfund Recycling Equity Act of 
1994''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to promote the reuse and recycling of scrap material in 
        furtherance of the goals of waste minimization and natural 
        resource conservation while protecting human health and the 
        environment;
            (2) to level the playing field between the use of virgin 
        materials and recycled materials; and
            (3) to remove the disincentives and impediments to 
        recycling because of potential Superfund liability.

SEC. 3. CLARIFICATION OF LIABILITY UNDER CERCLA FOR RECYCLING 
              TRANSACTIONS.

    Title I of the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 is amended by adding at the end the following 
new section:

``SEC. 127. RECYCLING TRANSACTIONS.

    ``(a) Liability Clarification.--As provided in subsections (b), 
(c), and (d), a person who arranged for the recycling of recyclable 
material shall not be liable under section 107(a)(3) or 107(a)(4).
    ``(b) Recyclable Material Defined.--For purposes of this section, 
the term `recyclable material' means scrap paper, scrap plastic, scrap 
glass, scrap textiles, scrap rubber (other than whole tires), scrap 
metal, or scrap lead-acid and nickel-cadmium 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.
    ``(c) 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:
            ``(1) The recyclable material met a commercial 
        specification grade.
            ``(2) A market existed for the recyclable material.
            ``(3) A substantial portion of the recyclable material was 
        made available for use as a feedstock for the manufacture of a 
        new saleable product.
            ``(4) The recyclable material could have been a replacement 
        or substitute for a virgin raw material, or the product 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.
            ``(5) For transactions occurring 90 days or more 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 (hereinafter in this 
        section 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 the 
        recyclable material. For purposes of this subsection, 
        `reasonable care' shall be determined using criteria that 
        includes (but is not limited to) (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 (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 paragraph, 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.
    ``(d) Transactions Involving Scrap Metal.--
            ``(1) 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--
                    ``(A) the person met the criteria set forth in 
                subsection (c) with respect to the scrap metal;
                    ``(B) 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 
                section and with regard to transactions occurring after 
                the effective date of such regulations or standards; 
                and
                    ``(C) the person did not melt the scrap metal prior 
                to the transaction.
            ``(2) For purposes of paragraph (1)(C), 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').
            ``(3) For the purposes of this subsection, the term `scrap 
        metal' means 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, except for scrap metals that the 
        Administrator excludes from this definition by regulation.
    ``(e) Transactions Involving Batteries.--Transactions involving 
spent lead-acid batteries or nickel-cadmium 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--
            ``(1) the person met the criteria set forth in subsection 
        (c) with respect to the spent lead-acid batteries or nickel-
        cadmium batteries but did not recover the valuable components 
        of such batteries; and
            ``(2) either--
                    ``(A) with respect to transactions involving 
                nickel-cadmium batteries, the Administrator has 
                promulgated regulations or standards 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
                    ``(B) with respect to transactions involving lead-
                acid batteries, the person was in compliance with 
                applicable regulations or standards, and any amendments 
                thereto, regarding the storage, transport, management, 
                or other activities associated with the recycling of 
                spent lead-acid batteries.
    ``(f) Exclusions.--(1) The exemptions set forth in subsections (c), 
(d), and (e) shall not apply if--
            ``(A) 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 during the 90-
                day period beginning on the date of the enactment of 
                this section, that the consuming facility was not in 
                compliance with a substantive (not a 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;
            ``(B) the person added hazardous substances into the 
        recyclable material for purposes other than processing or 
        recycling; or
            ``(C) the person failed to exercise reasonable care with 
        respect to the management and handling of the recyclable 
        material.
    ``(2) For purposes of this subsection, an objectively reasonable 
basis for belief shall be determined using criteria that includes (but 
is not limited to) the size of the person's business, customary 
industry practices, 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.
    ``(3) For purposes of this subsection, 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.
    ``(g) Effect on Other Liability.--Nothing in this section shall be 
deemed to affect the liability of a person under paragraph (1) or (2) 
of section 107(a).
    ``(h) PCBs.--An exemption under this section does not apply if the 
recyclable material contained polychlorinated biphenyls in excess of 50 
parts per million or any new standard promulgated pursuant to 
applicable Federal laws.
    ``(i) Regulations.--The Administrator has the authority, under 
section 115, to promulgate additional regulations concerning this 
section.
    ``(j) Effect on Pending or Concluded Actions.--The exemptions 
provided in this section shall not affect any concluded judicial or 
administrative action or any pending judicial action initiated by the 
United States prior to enactment of this section.
    ``(k) Liability for Attorney's Fees for Certain Actions.--Any 
person who commences an action in contribution against a person who is 
not liable by operation of this section shall be liable to that person 
for all reasonable costs of defending that action, including all 
reasonable attorney's and expert witness fees.
    ``(l) Relationship to Liability Under Other Laws.--Nothing in this 
section shall affect--
            ``(1) liability under any other Federal, State, or local 
        statute or regulation promulgated pursuant to any such statute, 
        including any requirements promulgated by the Administrator 
        under the Solid Waste Disposal Act; or
            ``(2) the ability of the Administrator to promulgate 
        regulations under any other statute, including the Solid Waste 
        Disposal Act.''.

Summary: Superfund Recycling Equity Act of 1994 - Amends the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to absolve persons who arranged for the recycling of recyclable material from liability for environmental response actions. Deems transactions involving scrap paper, plastic, glass, textiles, or rubber to be arranging for recycling if the person who arranged the transaction demonstrates that the following criteria were met: (1) the recyclable material met a commercial specification grade and a market existed for the material. (2) a substantial portion of the material was made available for use as a feedstock for the manufacture of a new saleable product. (3) the material could have been a replacement for a virgin raw material. And (4) with respect to transactions occurring 90 days after this Act's enactment, the person exercised reasonable care to determine that the facility where the material would be managed by another was in compliance with Federal, State, or local environmental laws or regulations. Deems transactions involving scrap metal to be arranging for recycling if the person who arranged the transaction demonstrates that: (1) the criteria for scrap materials were met. (2) heshe complied with applicable standards regarding activities associated with the recycling of scrap metals. And (3) the scrap metal was not melted prior to the transaction. Deems transactions involving spent lead-acid or nickel-cadmium batteries to be arranging for recycling if the person involved demonstrates that: (1) the criteria for scrap materials were met. And (2) heshe complied with applicable standards regarding such batteries. Makes the exemptions from liability under this Act inapplicable if the person: (1) had an objectively reasonable basis to believe at the time of the recycling transaction that the recyclable material would not be recycled or would be burned as fuel or for energy recovery or incineration or that the consuming facility was not in compliance with Federal, State, or local environmental laws or regulations. (2) added hazardous substances to the material for purposes other than processing or recycling. Or (3) failed to exercise reasonable care with respect to the management of the material. Makes such exemptions inapplicable if the recyclable material contained polychlorinated biphenyls in excess of 50 parts per million or any new Federal standard.