I 

110TH CONGRESS 

1ST SESSION H. R. 1887 

To amend the Internal Revenue Code of 1986 to extend the financing for 

Superfund for purposes of cleanup activities with respect to those Superfund sites for which removal and remedial action is estimated to cost 

more than $50 million, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2007 

Mr. HINCHEY introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy 

and Commerce and Transportation and Infrastructure, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the financing for Superfund for purposes of cleanup activities with respect to those Superfund sites for which 

removal and remedial action is estimated to cost more 

than $50 million, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Superfund Equity and 

5 Megasite Remediation Act of 2007’’. 


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1 SEC. 2. FINDINGS. 

2 The Congress finds the following: 

3 (1) The Comprehensive Environmental Re4 sponse, Compensation, and Liability Act of 1980 es5 tablished a Federal Superfund trust fund for the 

6 purpose of hazardous substance removal and remedi7 ation at sites across the Nation. 

8 (2) The release of hazardous substances may 

9 threaten and impair public health, the local environ10 ment, community infrastructure, the economy, and 

11 social well being. 

12 (3) The Environmental Protection Agency has 

13 evaluated more than 45,000 sites and has currently 

14 listed 1,086 non-Federal sites on the National Prior15 ities List. 

16 (4) One in four Americans live within 3 miles 

17 of a Superfund site. 

18 (5) The expiration of the Superfund crude oil, 

19 chemical feedstock, and corporate taxes in 1995 has 

20 contributed to a funding shortfall and has shifted 

21 the burden of cleanup to the general public, which 

22 has prevented numerous Superfund sites from re23 ceiving new construction funding in fiscal years 

24 2004, 2005, and 2006 and slowed the pace of exist25 ing cleanups. 


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1 (6) Delayed and slowed Superfund cleanup ac2 tions magnify public health risks and increase total 

3 remediation costs. 

4 (7) Responsible parties or potentially respon5 sible parties would continue to be liable for haz6 ardous releases under the Comprehensive Environ7 mental Response, Compensation, and Liability Act 

8 of 1980 after reestablishment of Superfund taxes. 

9 (8) Although costs vary from site to site, costs 

10 at some sites are substantial and place a greater de11 mand on the Hazardous Substance Superfund re12 sources to clean up contamination. 

13 (9) The Environmental Protection Agency gen14 erally considers Superfund sites where cleanup costs 

15 exceed $50 million to be megasites. 

16 (10) Megasites typically are among the larger, 

17 more complex, and more severely contaminated of 

18 sites, presenting the greatest cleanup challenges. As 

19 such, megasites are a substantial factor driving fu20 ture funding needs to clean up hazardous substances 

21 under the Superfund program. 

22 (11) The Environmental Protection Agency 

23 commits a large percentage of annual Superfund ob24 ligations for long-term ongoing cleanup work at only 

25 a few sites. These megasites siphon funding from 


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1 other Superfund sites and result in construction 

2 delays. In fiscal year 2006, 45 percent of funds for 

3 Superfund construction and post-construction activi4 ties went to only 14 sites. 

5 (12) As more megasites move beyond the anal6 ysis and design phase into actual construction, fund7 ing needs for these sites will increase. The average 

8 cost at megasites is projected to be at least $140 

9 million. 

10 (13) Megasites differ from non-megasites in 

11 that they require more resources over the long term 

12 to address complexities associated with developing 

13 remedies and cleaning up contamination that can 

14 cover many square miles, involve multiple commu15 nities, responsible parties, Indian Tribes or States. 

16 (14) For some megasites there is no ascertain17 able final remedy because remediation may involve 

18 decades of sequential actions, and institutional con19 trols may be required in perpetuity. According to the 

20 Environmental Protection Agency, more than half of 

21 the mining sites currently listed on the National Pri22 orities List will require operation and maintenance 

23 in perpetuity. 

24 (15) Responsible parties may not be able to 

25 fund megasite remediation activities that are anticiVerDate Aug 31 2005 18:51 Apr 20, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1887.IH H1887

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1 pated to last for decades or longer. The lack of a 

2 dedicated revenue stream raises serious concerns 

3 about how a remediation program expected to last 

4 for decades, if not centuries, can be successfully im5 plemented. 

6 (16) At megasites with no viable responsible 

7 parties, the Federal Government pays 90 percent of 

8 the construction costs, with the State paying the 

9 other 10 percent. Once construction is completed, 

10 the State is solely responsible for paying all oper11 ation and maintenance costs after completion of con12 struction activities, a time frame that for many 

13 megasites may extend in perpetuity. 

14 SEC. 3. SUPERFUND TAXES. 

15 (a) PERMANENT EXTENSION.— 

16 (1) EXCISE TAXES.—Section 4611(e) of the In17 ternal Revenue Code of 1986 is amended to read as 

18 follows: 

19 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE

20 SUPERFUND FINANCING RATE.— 

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), the Hazardous Substance Superfund fi23 nancing rate under this section shall apply after De24 cember 31, 1986, and before January 1, 1996, and 

25 after the date of the enactment of this subsection or 


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1 if later, the date which is 30 days after the last day 

2 of any calendar quarter for which the Secretary esti3 mates that, as of the close of that quarter, the unob4 ligated balance in the Hazardous Substance Super5 fund is less than $5,700,000,000. 

6 ‘‘(2) NO TAX IF UNOBLIGATED BALANCE IN

7 FUND EXCEEDS $5,700,000,000.—The Hazardous 

8 Substance Superfund financing rate shall not apply 

9 during a calendar quarter if the Secretary estimates 

10 that, as of the close of the preceding calendar quar11 ter, the unobligated balance in the Hazardous Sub12 stance Superfund exceeds $5,700,000,000.’’. 

13 (2) CORPORATE ENVIRONMENTAL INCOME

14 TAX.—Section 59A(e) of such Code is amended to 

15 read as follows: 

16 ‘‘(e) APPLICATION OF TAX.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), the tax imposed by this section shall 

19 apply to taxable years beginning after December 31, 

20 1986, and before January 1, 1996, and to taxable 

21 years beginning after the date of the enactment of 

22 this subsection or if later, the date which is 30 days 

23 after the last day of any calendar quarter for which 

24 the Secretary estimates that, as of the close of that 


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1 quarter, the unobligated balance in the Hazardous 

2 Substance Superfund is less than $5,700,000,000. 

3 ‘‘(2) NO TAX IF UNOBLIGATED BALANCE IN

4 FUND EXCEEDS $5,700,000,000.—The tax imposed by 

5 this section shall not apply during a calendar quar6 ter if the Secretary estimates that, as of the close 

7 of the preceding calendar quarter, the unobligated 

8 balance in the Hazardous Substance Superfund ex9 ceeds $5,700,000,000.’’. 

10 (3) TECHNICAL AMENDMENTS.— 

11 (A) Section 4611(b) of such Code is 

12 amended— 

13 (i) by striking ‘‘or exported from’’ in 

14 paragraph (1)(A), 

15 (ii) by striking ‘‘or exportation’’ in 

16 paragraph (1)(B), and 

17 (iii) by striking ‘‘AND EXPORTATION’’ 

18 in the heading. 

19 (B) Section 4611(d)(3) of such Code is 

20 amended— 

21 (i) by striking ‘‘or exporting the crude 

22 oil, as the case may be’’ in the text and in23 serting ‘‘the crude oil’’, and 

24 (ii) by striking ‘‘OR EXPORTS’’ in the 

25 heading. 


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1 (b) TEMPORARY TAX INCREASE FOR CLEANUP OF

2 CERTAIN SUPERFUND SITES.— 

3 (1) IN GENERAL.—Subsection (c) of section 

4 4611 of such Code is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(3) TEMPORARY RATE INCREASE TO FUND

7 CLEANUP OF CERTAIN SUPERFUND SITES.—During 

8 the period beginning on January 1, 2008, and end9 ing on December 31, 2012, the rate of tax specified 

10 by subparagraph (A) of paragraph (2) shall be in11 creased by the amount equal to 50 percent of such 

12 rate.’’. 

13 (2) CERTAIN CHEMICALS AND IMPORTED SUB14 STANCES.—Section 4661 of such Code (relating to 

15 imposition of tax on certain chemicals) is amended 

16 by adding at the end the following: 

17 ‘‘(d) TEMPORARY INCREASE TO FUND CLEANUP OF

18 CERTAIN SUPERFUND SITES.—During the period begin19 ning on January 1, 2008, and ending on December 31, 

20 2012, each amount of tax per ton with respect to a sub21 stance specified in subsection (b) shall be increased by an 

22 amount equal to 50 percent of such amount.’’. 

23 (3) TEMPORARY INCREASE IN CORPORATE EN24 VIRONMENTAL INCOME TAX CLEANUP OF CERTAIN

25 SUPERFUND SITES.—Subsection (a) of section 59A 


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1 of such Code (relating to imposition of tax) is 

2 amended by adding at the end the following flush 

3 sentence: ‘‘In the case of taxable years beginning on 

4 or after January 1, 2008, and ending on or before 

5 December 31, 2012, the preceding sentence shall be 

6 applied by substituting ‘0.18 percent’ for ‘0.12 per7 cent’.’’. 

8 (4) SEPARATE ACCOUNTING FOR CLEANUP

9 FUNDS.—Section 9507 of such Code (relating to 

10 Hazardous Substance Superfund) is amended by 

11 adding at the end the following new subsection: 

12 ‘‘(f) ESTABLISHMENT OF MEGASITES AND HIGH

13 RISK SITES CLEANUP ACCOUNT.— 

14 ‘‘(1) CREATION OF ACCOUNT.—There is estab15 lished in the Hazardous Substance Superfund a sep16 arate account to be known as the ‘Megasites and 

17 High Risk Sites Cleanup Account’ consisting of such 

18 amounts as may be transferred or credited to the 

19 Megasites and High Risk Sites Cleanup Account as 

20 provided in this subsection or section 9602(b). 

21 ‘‘(2) TRANSFERS TO ACCOUNT.—The Secretary 

22 shall transfer to the Megasites and High Risk Sites 

23 Cleanup Account from the amounts appropriated to 

24 Superfund under subsection (b) amounts equal to— 


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1 ‘‘(A) the increase in the tax imposed under 

2 section 59A by reason of the last sentence of 

3 subsection (a) thereof, 

4 ‘‘(B) the increase in the tax imposed under 

5 section 4611(c) by reason of paragraph (3) 

6 thereof, 

7 ‘‘(C) the increase in the tax imposed under 

8 section 4661 by reason of subsection (d) there9 of, and 

10 ‘‘(D) the increase in the tax imposed under 

11 section 4671 by reason of the increase in tax 

12 under section 4661(d). 

13 ‘‘(3) EXPENDITURES FROM ACCOUNT.— 

14 Amounts in the Megasites and High Risk Sites 

15 Cleanup Account shall be available, as provided by 

16 appropriation Acts, for making expenditures in ac17 cordance with section 4 of the Superfund Equity and 

18 Megasite Remediation Act of 2007. 

19 ‘‘(4) REVERSION OF UNEXPENDED FUNDS.— 

20 Amounts remaining in the Megasites and High Risk 

21 Sites Cleanup Account shall revert to the Hazardous 

22 Substance Superfund on the date which is the later 

23 of— 

24 ‘‘(A) December 31, 2013, or 


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1 ‘‘(B) the date as of which the Adminis2 trator of the Environmental Protection Agency 

3 makes the determination under section 4 of 

4 such Act.’’. 

5 (c) EFFECTIVE DATES.— 

6 (1) EXCISE TAXES.—The amendments made by 

7 subsections (a) (other than paragraph (2) thereof) 

8 and (b) (other than paragraph (3) thereof shall take 

9 effect on the date of the enactment of this Act. 

10 (2) INCOME TAX.—The amendments made by 

11 subsections (a)(2) and (b)(3) shall apply to taxable 

12 years beginning after the date of the enactment of 

13 this Act. 

14 SEC. 4. EXPENDITURES FROM TRUST FUND. 

15 Amounts in the Megasites Cleanup and High Risk 

16 Sites Account established under section 9507(f) of the In17 ternal Revenue Code of 1986 shall be used only for mak18 ing expenditures in accordance with such section 9507(f) 

19 with respect to any site on the National Priorities List 

20 under the Comprehensive Environmental Response, Com21 pensation, and Liability Act of 1980 (‘‘Superfund’’)— 

22 (1) at which response is cumulatively estimated 

23 by the Administrator of the Environmental Protec24 tion Agency to cost more than $50,000,000, or 


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1 (2) the Administrator has designated as pre2 senting high health risks, including sites where haz3 ardous substance exposure to humans remains un4 controlled, 

5 until such time as the Administrator determines by rule 

6 that no response actions are necessary to protect human 

7 health and the environment with respect to such sites. Be8 fore initiating a rulemaking under this section, the Admin9 istrator shall notify the Congress of the intention to ini10 tiate the rulemaking. 

11 SEC. 5. ANNUAL REPORTS TO CONGRESS. 

12 (a) IN GENERAL.—The Administrator of the Envi13 ronmental Protection Agency shall submit to the Congress 

14 each year, not later than 45 days after the date on which 

15 the President submits to the Congress the budget for a 

16 fiscal year, a report on the progress of response actions 

17 funded by the Hazardous Substance Superfund with re18 spect to each non-Federal site placed on the National Pri19 orities List. 

20 (b) CONTENTS OF REPORT.—Each such report shall 

21 include, with respect to response actions at each site, the 

22 following: 

23 (1) A statement of the number of sites at which 

24 a hazardous substance has been identified. 


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1 (2) A statement of the status of response ac2 tions proposed for or initiated at each site. 

3 (3) A statement of the total cost estimated for 

4 such response actions at each site. 

5 (4) A statement of the amount of funds obli6 gated by the Administrator for such response actions 

7 at each site, and the progress made in implementing 

8 the response actions at each site during the fiscal 

9 year preceding the year in which the report is sub10 mitted, including an explanation of— 

11 (A) any cost overruns for such response 

12 actions, if the amount of funds obligated for 

13 those response actions exceeds the estimated 

14 cost for those response actions by the greater of 

15 15 percent of the estimated cost or 

16 $10,000,000; and 

17 (B) any deviation in the schedule of more 

18 than 180 days for such response actions at each 

19 site. 

20 (5) A statement of the amount of funds allo21 cated by the Administrator for, and the anticipated 

22 progress in implementing, such response actions dur23 ing the fiscal year in which the report is submitted. 

24 (6) A statement of the amount of funds re25 quested for such response actions for the five fiscal 


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1 years following the fiscal year in which the report is 

2 submitted, and the anticipated progress in imple3 menting such response actions for the fiscal year for 

4 which the budget is submitted. 

5 (7) A statement of the total costs incurred for 

6 such response actions as of the date of the submis7 sion of the report. 

8 (8) A statement of the estimated cost of com9 pleting all response actions required with respect to 

10 each site, including, where relevant, the estimated 

11 cost of such activities in each of the five fiscal years 

12 following the fiscal year in which the report is sub13 mitted. 

14 (9) A statement of the estimated schedule for 

15 completing all response actions at each site. 

16 (10) A statement of the activities, if any, in17 cluding expenditures for grants awarded to commu18 nities for technical assistance. 

Æ 


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