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[107th Congress Public Law 118]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ118.107]

[[Page 2355]]

   SMALL BUSINESS LIABILITY RELIEF AND BROWNFIELDS REVITALIZATION ACT

[[Page 115 STAT. 2356]]

Public Law 107-118
107th Congress

                                 An Act

 
To provide certain relief for small businesses from liability under the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
    1980, and to amend such Act to promote the cleanup and reuse of 
      brownfields, to provide financial assistance for brownfields 
   revitalization, to enhance State response programs, and for other 
            purposes. <<NOTE: Jan. 11, 2002 -  [H.R. 2869]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Small Business Liability 
Relief and Brownfields Revitalization Act.>> assembled,

SECTION 1. <<NOTE: 42 USC 9601 note.>>  SHORT TITLE.

    This Act may be cited as the ``Small Business Liability Relief and 
Brownfields Revitalization Act''.

   TITLE I-- <<NOTE: Small Business Liability Protection Act.>> SMALL 
BUSINESS LIABILITY PROTECTION

SEC. 101. <<NOTE: 42 USC 9601 note.>>  SHORT TITLE.

    This title may be cited as the ``Small Business Liability Protection 
Act''.

SEC. 102. SMALL BUSINESS LIABILITY RELIEF.

    (a) Exemptions.--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 subsections:
    ``(o) De Micromis Exemption.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        person shall not be liable, with respect to response costs at a 
        facility on the National Priorities List, under this Act if 
        liability is based solely on paragraph (3) or (4) of subsection 
        (a), and the person, except as provided in paragraph (4) of this 
        subsection, can demonstrate that--
                    ``(A) the total amount of the material containing 
                hazardous substances that the person 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, at the facility 
                was less than 110 gallons of liquid materials or less 
                than 200 pounds of solid materials (or such greater or 
                lesser amounts as the Administrator may determine by 
                regulation); and
                    ``(B) all or part of the disposal, treatment, or 
                transport concerned occurred before April 1, 2001.
            ``(2) Exceptions.--Paragraph (1) shall not apply in a case 
        in which--

[[Page 115 STAT. 2357]]

                    ``(A) the President determines that--
                          ``(i) the materials containing hazardous 
                      substances referred to in paragraph (1) have 
                      contributed significantly or could contribute 
                      significantly, either individually or in the 
                      aggregate, to the cost of the response action or 
                      natural resource restoration with respect to the 
                      facility; or
                          ``(ii) the person has failed to comply with an 
                      information request or administrative subpoena 
                      issued by the President under this Act or has 
                      impeded or is impeding, through action or 
                      inaction, the performance of a response action or 
                      natural resource restoration with respect to the 
                      facility; or
                    ``(B) a person has been convicted of a criminal 
                violation for the conduct to which the exemption would 
                apply, and that conviction has not been vitiated on 
                appeal or otherwise.
            ``(3) No judicial review.--A determination by the President 
        under paragraph (2)(A) shall not be subject to judicial review.
            ``(4) Nongovernmental third-party contribution actions.--In 
        the case of a contribution action, with respect to response 
        costs at a facility on the National Priorities List, brought by 
        a party, other than a Federal, State, or local government, under 
        this Act, the burden of proof shall be on the party bringing the 
        action to demonstrate that the conditions described in paragraph 
        (1)(A) and (B) of this subsection are not met.

    ``(p) Municipal Solid Waste Exemption.--
            ``(1) In general.--Except as provided in paragraph (2) of 
        this subsection, a person shall not be liable, with respect to 
        response costs at a facility on the National Priorities List, 
        under paragraph (3) of subsection (a) for municipal solid waste 
        disposed of at a facility if the person, except as provided in 
        paragraph (5) of this subsection, can demonstrate that the 
        person is--
                    ``(A) an owner, operator, or lessee of residential 
                property from which all of the person's municipal solid 
                waste was generated with respect to the facility;
                    ``(B) a business entity (including a parent, 
                subsidiary, or affiliate of the entity) that, during its 
                3 taxable years preceding the date of transmittal of 
                written notification from the President of its potential 
                liability under this section, employed on average not 
                more than 100 full-time individuals, or the equivalent 
                thereof, and that is a small business concern (within 
                the meaning of the Small Business Act (15 U.S.C. 631 et 
                seq.)) from which was generated all of the municipal 
                solid waste attributable to the entity with respect to 
                the facility; or
                    ``(C) an organization described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 and exempt from tax 
                under section 501(a) of such Code that, during its 
                taxable year preceding the date of transmittal of 
                written notification from the President of its potential 
                liability under this section, employed not more than 100 
                paid individuals at the location from which was 
                generated all of the municipal

[[Page 115 STAT. 2358]]

                solid waste attributable to the organization with 
                respect to the facility.
        For purposes of this subsection, the term `affiliate' has the 
        meaning of that term provided in the definition of `small 
        business concern' in regulations promulgated by the Small 
        Business Administration in accordance with the Small Business 
        Act (15 U.S.C. 631 et seq.).
            ``(2) Exception.--Paragraph (1) shall not apply in a case in 
        which the President determines that--
                    ``(A) the municipal solid waste referred to in 
                paragraph (1) has contributed significantly or could 
                contribute significantly, either individually or in the 
                aggregate, to the cost of the response action or natural 
                resource restoration with respect to the facility;
                    ``(B) the person has failed to comply with an 
                information request or administrative subpoena issued by 
                the President under this Act; or
                    ``(C) the person has impeded or is impeding, through 
                action or inaction, the performance of a response action 
                or natural resource restoration with respect to the 
                facility.
            ``(3) No judicial review.--A determination by the President 
        under paragraph (2) shall not be subject to judicial review.
            ``(4) Definition of municipal solid waste.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `municipal solid waste' means waste material--
                          ``(i) generated by a household (including a 
                      single or multifamily residence); and
                          ``(ii) generated by a commercial, industrial, 
                      or institutional entity, to the extent that the 
                      waste material--
                                    ``(I) is essentially the same as 
                                waste normally generated by a household;
                                    ``(II) is collected and disposed of 
                                with other municipal solid waste as part 
                                of normal municipal solid waste 
                                collection services; and
                                    ``(III) contains a relative quantity 
                                of hazardous substances no greater than 
                                the relative quantity of hazardous 
                                substances contained in waste material 
                                generated by a typical single-family 
                                household.
                    ``(B) Examples.--Examples of municipal solid waste 
                under subparagraph (A) include 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--
                          ``(i) combustion ash generated by resource 
                      recovery facilities or municipal incinerators; or
                          ``(ii) waste material from manufacturing or 
                      processing operations (including pollution control 
                      operations) that is not essentially the same as 
                      waste normally generated by households.
            ``(5) Burden of proof.--In the case of an action, with 
        respect to response costs at a facility on the National 
        Priorities List, brought under section 107 or 113 by--

[[Page 115 STAT. 2359]]

                    ``(A) a party, other than a Federal, State, or local 
                government, with respect to municipal solid waste 
                disposed of on or after April 1, 2001; or
                    ``(B) any party with respect to municipal solid 
                waste disposed of before April 1, 2001, the burden of 
                proof shall be on the party bringing the action to 
                demonstrate that the conditions described in paragraphs 
                (1) and (4) for exemption for entities and organizations 
                described in paragraph (1)(B) and (C) are not met.
            ``(6) Certain actions not permitted.--No contribution action 
        may be brought by a party, other than a Federal, State, or local 
        government, under this Act with respect to circumstances 
        described in paragraph (1)(A).
            ``(7) Costs and fees.--A nongovernmental entity that 
        commences, after the date of the enactment of this subsection, a 
        contribution action under this Act shall be liable to the 
        defendant for all reasonable costs of defending the action, 
        including all reasonable attorney's fees and expert witness 
        fees, if the defendant is not liable for contribution based on 
        an exemption under this subsection or subsection (o).''.

    (b) Expedited Settlement.--Section 122(g) of such Act (42 U.S.C. 
9622(g)) is amended by adding at the end the following new paragraphs:
            ``(7) Reduction in settlement amount based on limited 
        ability to pay.--
                    ``(A) In general.--The condition for settlement 
                under this paragraph is that the potentially responsible 
                party is a person who demonstrates to the President an 
                inability or a limited ability to pay response costs.
                    ``(B) <<NOTE: President.>>  Considerations.--In 
                determining whether or not a demonstration is made under 
                subparagraph (A) by a person, the President shall take 
                into consideration the ability of the person to pay 
                response costs and still maintain its basic business 
                operations, including consideration of the overall 
                financial condition of the person and demonstrable 
                constraints on the ability of the person to raise 
                revenues.
                    ``(C) Information.--A person requesting settlement 
                under this paragraph shall promptly provide the 
                President with all relevant information needed to 
                determine the ability of the person to pay response 
                costs.
                    ``(D) <<NOTE: President.>>  Alternative payment 
                methods.--If the President determines that a person is 
                unable to pay its total settlement amount at the time of 
                settlement, the President shall consider such 
                alternative payment methods as may be necessary or 
                appropriate.
            ``(8) Additional conditions for expedited settlements.--
                    ``(A) <<NOTE: President.>>  Waiver of claims.--The 
                President shall require, as a condition for settlement 
                under this subsection, that a potentially responsible 
                party waive all of the claims (including a claim for 
                contribution under this Act) that the party may have 
                against other potentially responsible parties for 
                response costs incurred with respect to the facility, 
                unless the President determines that requiring a waiver 
                would be unjust.

[[Page 115 STAT. 2360]]

                    ``(B) Failure to comply.--The President may decline 
                to offer a settlement to a potentially responsible party 
                under this subsection if the President determines that 
                the potentially responsible party has failed to comply 
                with any request for access or information or an 
                administrative subpoena issued by the President under 
                this Act or has impeded or is impeding, through action 
                or inaction, the performance of a response action with 
                respect to the facility.
                    ``(C) Responsibility to provide information and 
                access.--A potentially responsible party that enters 
                into a settlement under this subsection shall not be 
                relieved of the responsibility to provide any 
                information or access requested in accordance with 
                subsection (e)(3)(B) or section 104(e).
            ``(9) <<NOTE: President.>>  Basis of determination.--If the 
        President determines that a potentially responsible party is not 
        eligible for settlement under this subsection, the President 
        shall provide the reasons for the determination in writing to 
        the potentially responsible party that requested a settlement 
        under this subsection.
            ``(10) <<NOTE: President.>>  Notification.--As soon as 
        practicable after receipt of sufficient information to make a 
        determination, the President shall notify any person that the 
        President determines is eligible under paragraph (1) of the 
        person's eligibility for an expedited settlement.
            ``(11) No judicial review.--A determination by the President 
        under paragraph (7), (8), (9), or (10) shall not be subject to 
        judicial review.
            ``(12) <<NOTE: President.>>  Notice of settlement.--After a 
        settlement under this subsection becomes final with respect to a 
        facility, the President shall promptly notify potentially 
        responsible parties at the facility that have not resolved their 
        liability to the United States of the settlement.''.

SEC. 103. EFFECT ON <<NOTE: 42 USC 9607 note.>>  CONCLUDED ACTIONS.

    The amendments made by this title shall not apply to or in any way 
affect any settlement lodged in, or judgment issued by, a United States 
District Court, or any administrative settlement or order entered into 
or issued by the United States or any State, before the date of the 
enactment of this Act.

    TITLE II-- <<NOTE: Brownfields Revitalization and Environmental 
Restoration Act of 2001.>> BROWNFIELDS REVITALIZATION AND ENVIRONMENTAL 
RESTORATION

SEC. 201. <<NOTE: 42 USC 9601 note.>>  SHORT TITLE.

    This title may be cited as the ``Brownfields Revitalization and 
Environmental Restoration Act of 2001''.

             Subtitle A--Brownfields Revitalization Funding

SEC. 211. BROWNFIELDS REVITALIZATION FUNDING.

    (a) Definition of Brownfield Site.--Section 101 of the Comprehensive 
Environmental Response, Compensation, and Liability

[[Page 115 STAT. 2361]]

Act of 1980 (42 U.S.C. 9601) is amended by adding at the end the 
following:
            ``(39) Brownfield site.--
                    ``(A) In general.--The term `brownfield site' means 
                real property, the expansion, redevelopment, or reuse of 
                which may be complicated by the presence or potential 
                presence of a hazardous substance, pollutant, or 
                contaminant.
                    ``(B) Exclusions.--The term `brownfield site' does 
                not include--
                          ``(i) a facility that is the subject of a 
                      planned or ongoing removal action under this 
                      title;
                          ``(ii) a facility that is listed on the 
                      National Priorities List or is proposed for 
                      listing;
                          ``(iii) a facility that is the subject of a 
                      unilateral administrative order, a court order, an 
                      administrative order on consent or judicial 
                      consent decree that has been issued to or entered 
                      into by the parties under this Act;
                          ``(iv) a facility that is the subject of a 
                      unilateral administrative order, a court order, an 
                      administrative order on consent or judicial 
                      consent decree that has been issued to or entered 
                      into by the parties, or a facility to which a 
                      permit has been issued by the United States or an 
                      authorized State under the Solid Waste Disposal 
                      Act (42 U.S.C. 6901 et seq.), 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.);
                          ``(v) a facility that--
                                    ``(I) is subject to corrective 
                                action under section 3004(u) or 3008(h) 
                                of the Solid Waste Disposal Act (42 
                                U.S.C. 6924(u), 6928(h)); and
                                    ``(II) to which a corrective action 
                                permit or order has been issued or 
                                modified to require the implementation 
                                of corrective measures;
                          ``(vi) 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;
                          ``(vii) a facility that is subject to the 
                      jurisdiction, custody, or control of a department, 
                      agency, or instrumentality of the United States, 
                      except for land held in trust by the United States 
                      for an Indian tribe;
                          ``(viii) a portion of a facility--
                                    ``(I) at which there has been a 
                                release of polychlorinated biphenyls; 
                                and
                                    ``(II) that is subject to 
                                remediation under the Toxic Substances 
                                Control Act (15 U.S.C. 2601 et seq.); or
                          ``(ix) 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

[[Page 115 STAT. 2362]]

                      Tank Trust Fund established under section 9508 of 
                      the Internal Revenue Code of 1986.
                    ``(C) Site-by-site determinations.--Notwithstanding 
                subparagraph (B) and on a site-by-site basis, the 
                President may authorize financial assistance under 
                section 104(k) to an eligible entity at a site included 
                in clause (i), (iv), (v), (vi), (viii), or (ix) of 
                subparagraph (B) if the President finds that financial 
                assistance will protect human health and the 
                environment, and either promote economic development or 
                enable the creation of, preservation of, or addition to 
                parks, greenways, undeveloped property, other 
                recreational property, or other property used for 
                nonprofit purposes.
                    ``(D) Additional areas.--For the purposes of section 
                104(k), the term `brownfield site' includes a site 
                that--
                          ``(i) meets the definition of `brownfield 
                      site' under subparagraphs (A) through (C); and
                          ``(ii)(I) is contaminated by a controlled 
                      substance (as defined in section 102 of the 
                      Controlled Substances Act (21 U.S.C. 802));
                          ``(II)(aa) is contaminated by petroleum or a 
                      petroleum product excluded from the definition of 
                      `hazardous substance' under section 101; and
                          ``(bb) is a site determined by the 
                      Administrator or the State, as appropriate, to 
                      be--
                                    ``(AA) of relatively low risk, as 
                                compared with other petroleum-only sites 
                                in the State; and
                                    ``(BB) a site for which there is no 
                                viable responsible party and which will 
                                be assessed, investigated, or cleaned up 
                                by a person that is not potentially 
                                liable for cleaning up the site; and
                          ``(cc) is not subject to any order issued 
                      under section 9003(h) of the Solid Waste Disposal 
                      Act (42 U.S.C. 6991b(h)); or
                          ``(III) is mine-scarred land.''.

    (b) Brownfields Revitalization Funding.--Section 104 of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9604) is amended by adding at the end the following:
    ``(k) Brownfields Revitalization Funding.--
            ``(1) Definition of eligible entity.--In this subsection, 
        the term `eligible entity' means--
                    ``(A) a general purpose unit of local government;
                    ``(B) 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;
                    ``(C) a government entity created by a State 
                legislature;
                    ``(D) a regional council or group of general purpose 
                units of local government;
                    ``(E) a redevelopment agency that is chartered or 
                otherwise sanctioned by a State;
                    ``(F) a State;
                    ``(G) an Indian Tribe other than in Alaska; or
                    ``(H) an Alaska Native Regional Corporation and an 
                Alaska Native Village Corporation as those terms are 
                defined in the Alaska Native Claims Settlement Act (43

[[Page 115 STAT. 2363]]

                U.S.C. 1601 and following) and the Metlakatla Indian 
                community.
            ``(2) Brownfield site characterization and assessment grant 
        program.--
                    ``(A) <<NOTE: Grants.>>  Establishment of program.--
                The Administrator shall establish a program to--
                          ``(i) provide grants to inventory, 
                      characterize, assess, and conduct planning related 
                      to brownfield sites under subparagraph (B); and
                          ``(ii) perform targeted site assessments at 
                      brownfield sites.
                    ``(B) Assistance for site characterization and 
                assessment.--
                          ``(i) In general.--On approval of an 
                      application made by an eligible entity, the 
                      Administrator may make a grant to the eligible 
                      entity to be used for programs to inventory, 
                      characterize, assess, and conduct planning related 
                      to one or more brownfield sites.
                          ``(ii) Site characterization and assessment.--
                      A site characterization and assessment carried out 
                      with the use of a grant under clause (i) shall be 
                      performed in accordance with section 101(35)(B).
            ``(3) Grants and loans for brownfield remediation.--
                    ``(A) Grants provided by the president.--Subject to 
                paragraphs (4) and (5), the President shall establish a 
                program to provide grants to--
                          ``(i) eligible entities, to be used for 
                      capitalization of revolving loan funds; and
                          ``(ii) eligible entities or nonprofit 
                      organizations, where warranted, as determined by 
                      the President based on considerations under 
                      subparagraph (C), to be used directly for 
                      remediation of one or more brownfield sites owned 
                      by the entity or organization that receives the 
                      grant and in amounts not to exceed $200,000 for 
                      each site to be remediated.
                    ``(B) Loans and grants provided by eligible 
                entities.--An eligible entity that receives a grant 
                under subparagraph (A)(i) shall use the grant funds to 
                provide assistance for the remediation of brownfield 
                sites in the form of--
                          ``(i) one or more loans to an eligible entity, 
                      a site owner, a site developer, or another person; 
                      or
                          ``(ii) one or more grants to an eligible 
                      entity or other nonprofit organization, where 
                      warranted, as determined by the eligible entity 
                      that is providing the assistance, based on 
                      considerations under subparagraph (C), to 
                      remediate sites owned by the eligible entity or 
                      nonprofit organization that receives the grant.
                    ``(C) <<NOTE: President.>>  Considerations.--In 
                determining whether a grant under subparagraph (A)(ii) 
                or (B)(ii) is warranted, the President or the eligible 
                entity, as the case may be, shall take into 
                consideration--
                          ``(i) the extent to which a grant will 
                      facilitate the creation of, preservation of, or 
                      addition to a park, a greenway, undeveloped 
                      property, recreational property, or other property 
                      used for nonprofit purposes;

[[Page 115 STAT. 2364]]

                          ``(ii) 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 site is located because 
                      of the small population or low income of the 
                      community;
                          ``(iii) the extent to which a grant will 
                      facilitate the use or reuse of existing 
                      infrastructure;
                          ``(iv) the benefit of promoting the long-term 
                      availability of funds from a revolving loan fund 
                      for brownfield remediation; and
                          ``(v) such other similar factors as the 
                      Administrator considers appropriate to consider 
                      for the purposes of this subsection.
                    ``(D) Transition.--Revolving loan funds that have 
                been established before the date of the enactment of 
                this subsection may be used in accordance with this 
                paragraph.
            ``(4) General provisions.--
                    ``(A) Maximum grant amount.--
                          ``(i) Brownfield site characterization and 
                      assessment.--
                                    ``(I) In general.--A grant under 
                                paragraph (2) may be awarded to an 
                                eligible entity on a community-wide or 
                                site-by-site basis, and shall not 
                                exceed, for any individual brownfield 
                                site covered by the grant, $200,000.
                                    ``(II) Waiver.--The Administrator 
                                may waive the $200,000 limitation under 
                                subclause (I) to permit the brownfield 
                                site to receive a grant of not to exceed 
                                $350,000, based on the anticipated level 
                                of contamination, size, or status of 
                                ownership of the site.
                          ``(ii) Brownfield remediation.--A grant under 
                      paragraph (3)(A)(i) may be awarded to an eligible 
                      entity on a community-wide or site-by-site basis, 
                      not to exceed $1,000,000 per eligible entity. The 
                      Administrator may make an additional grant to an 
                      eligible entity described in the previous sentence 
                      for any year after the year for which the initial 
                      grant is made, taking into consideration--
                                    ``(I) the number of sites and number 
                                of communities that are addressed by the 
                                revolving loan fund;
                                    ``(II) the demand for funding by 
                                eligible entities that have not 
                                previously received a grant under this 
                                subsection;
                                    ``(III) the demonstrated ability of 
                                the eligible entity to use the revolving 
                                loan fund to enhance remediation and 
                                provide funds on a continuing basis; and
                                    ``(IV) such other similar factors as 
                                the Administrator considers appropriate 
                                to carry out this subsection.
                    ``(B) Prohibition.--
                          ``(i) In general.--No part of a grant or loan 
                      under this subsection may be used for the payment 
                      of--
                                    ``(I) a penalty or fine;

[[Page 115 STAT. 2365]]

                                    ``(II) a Federal cost-share 
                                requirement;
                                    ``(III) an administrative cost;
                                    ``(IV) a response cost at a 
                                brownfield site for which the recipient 
                                of the grant or loan is potentially 
                                liable under section 107; or
                                    ``(V) a cost of compliance with any 
                                Federal law (including a Federal law 
                                specified in section 101(39)(B)), 
                                excluding the cost of compliance with 
                                laws applicable to the cleanup.
                          ``(ii) Exclusions.--For the purposes of clause 
                      (i)(III), 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 a natural 
                                resource.
                    ``(C) Assistance for development of local government 
                site remediation programs.--A local government that 
                receives a grant under this subsection may use not to 
                exceed 10 percent of the grant funds to develop and 
                implement a brownfields program that may include--
                          ``(i) monitoring the health of populations 
                      exposed to one or more hazardous substances from a 
                      brownfield site; and
                          ``(ii) monitoring and enforcement of any 
                      institutional control used to prevent human 
                      exposure to any hazardous substance from a 
                      brownfield site.
                    ``(D) Insurance.--A recipient of a grant or loan 
                awarded under paragraph (2) or (3) that performs a 
                characterization, assessment, or remediation of a 
                brownfield site may use a portion of the grant or loan 
                to purchase insurance for the characterization, 
                assessment, or remediation of that site.
            ``(5) Grant applications.--
                    ``(A) Submission.--
                          ``(i) In general.--
                                    ``(I) Application.--An eligible 
                                entity may submit to the Administrator, 
                                through a regional office of the 
                                Environmental Protection Agency and in 
                                such form as the Administrator may 
                                require, an application for a grant 
                                under this subsection for one or more 
                                brownfield sites (including information 
                                on the criteria used by the 
                                Administrator to rank applications under 
                                subparagraph (C), to the extent that the 
                                information is available).
                                    ``(II) NCP requirements.--The 
                                Administrator may include in any 
                                requirement for submission of an 
                                application under subclause (I) a 
                                requirement of the National Contingency 
                                Plan only to the extent that the 
                                requirement is relevant and appropriate 
                                to the program under this subsection.
                          ``(ii) Coordination.--The Administrator shall 
                      coordinate with other Federal agencies to assist 
                      in making eligible entities aware of other 
                      available Federal resources.

[[Page 115 STAT. 2366]]

                          ``(iii) <<NOTE: Publication.>> Guidance.--The 
                      Administrator shall publish guidance to assist 
                      eligible entities in applying for grants under 
                      this subsection.
                    ``(B) Approval.--The Administrator shall--
                          ``(i) at least annually, complete a review of 
                      applications for grants that are received from 
                      eligible entities under this subsection; and
                          ``(ii) <<NOTE: Grants.>>  award grants under 
                      this subsection to eligible entities that the 
                      Administrator determines have the highest rankings 
                      under the ranking criteria established under 
                      subparagraph (C).
                    ``(C) Ranking criteria.--The Administrator shall 
                establish a system for ranking grant applications 
                received under this paragraph that includes the 
                following criteria:
                          ``(i) The extent to which a grant will 
                      stimulate the availability of other funds for 
                      environmental assessment or remediation, and 
                      subsequent reuse, of an area in which one or more 
                      brownfield sites are located.
                          ``(ii) The potential of the proposed project 
                      or the development plan for an area in which one 
                      or more brownfield sites are located to stimulate 
                      economic development of the area on completion of 
                      the cleanup.
                          ``(iii) The extent to which a grant would 
                      address or facilitate the identification and 
                      reduction of threats to human health and the 
                      environment, including threats in areas in which 
                      there is a greater-than-normal incidence of 
                      diseases or conditions (including cancer, asthma, 
                      or birth defects) that may be associated with 
                      exposure to hazardous substances, pollutants, or 
                      contaminants.
                          ``(iv) The extent to which a grant would 
                      facilitate the use or reuse of existing 
                      infrastructure.
                          ``(v) The extent to which a grant would 
                      facilitate the creation of, preservation of, or 
                      addition to a park, a greenway, undeveloped 
                      property, recreational property, or other property 
                      used for nonprofit purposes.
                          ``(vi) The extent to which a grant would 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 site is located because 
                      of the small population or low income of the 
                      community.
                          ``(vii) The extent to which the applicant is 
                      eligible for funding from other sources.
                          ``(viii) The extent to which a grant will 
                      further the fair distribution of funding between 
                      urban and nonurban areas.
                          ``(ix) The extent to which the grant provides 
                      for involvement of the local community in the 
                      process of making decisions relating to cleanup 
                      and future use of a brownfield site.
                          ``(x) The extent to which a grant would 
                      address or facilitate the identification and 
                      reduction of threats to the health or welfare of 
                      children, pregnant women, minority or low-income 
                      communities, or other sensitive populations.

[[Page 115 STAT. 2367]]

            ``(6) Implementation of brownfields programs.--
                    ``(A) Establishment of program.--The Administrator 
                may provide, or fund eligible entities or nonprofit 
                organizations to provide, training, research, and 
                technical assistance to individuals and organizations, 
                as appropriate, to facilitate the inventory of 
                brownfield sites, site assessments, remediation of 
                brownfield sites, community involvement, or site 
                preparation.
                    ``(B) Funding restrictions.--The total Federal funds 
                to be expended by the Administrator under this paragraph 
                shall not exceed 15 percent of the total amount 
                appropriated to carry out this subsection in any fiscal 
                year.
            ``(7) Audits.--
                    ``(A) In general.--The Inspector General of the 
                Environmental Protection Agency shall conduct such 
                reviews or audits of grants and loans under this 
                subsection as the Inspector General considers necessary 
                to carry out this subsection.
                    ``(B) Procedure.--An audit under this subparagraph 
                shall be conducted in accordance with the auditing 
                procedures of the General Accounting Office, including 
                chapter 75 of title 31, United States Code.
                    ``(C) Violations.--If the Administrator determines 
                that a person that receives a grant or loan under this 
                subsection has violated or is in violation of a 
                condition of the grant, loan, or applicable Federal law, 
                the Administrator may--
                          ``(i) terminate the grant or loan;
                          ``(ii) require the person to repay any funds 
                      received; and
                          ``(iii) seek any other legal remedies 
                      available to the Administrator.
                    ``(D) <<NOTE: Deadline.>>  Report to congress.--Not 
                later than 3 years after the date of the enactment of 
                this subsection, the Inspector General of the 
                Environmental Protection Agency shall submit to Congress 
                a report that provides a description of the management 
                of the program (including a description of the 
                allocation of funds under this subsection).
            ``(8) Leveraging.--An eligible entity that receives a grant 
        under this subsection may use the grant funds for a portion of a 
        project at a brownfield site for which funding is received from 
        other sources if the grant funds are used only for the purposes 
        described in paragraph (2) or (3).
            ``(9) Agreements.--Each grant or loan made under this 
        subsection shall--
                    ``(A) include a requirement of the National 
                Contingency Plan only to the extent that the requirement 
                is relevant and appropriate to the program under this 
                subsection, as determined by the Administrator; and
                    ``(B) be subject to an agreement that--
                          ``(i) requires the recipient to--
                                    ``(I) comply with all applicable 
                                Federal and State laws; and
                                    ``(II) ensure that the cleanup 
                                protects human health and the 
                                environment;

[[Page 115 STAT. 2368]]

                          ``(ii) requires that the recipient use the 
                      grant or loan exclusively for purposes specified 
                      in paragraph (2) or (3), as applicable;
                          ``(iii) in the case of an application by an 
                      eligible entity under paragraph (3)(A), requires 
                      the eligible entity to pay a matching share (which 
                      may be in the form of a contribution of labor, 
                      material, or services) of at least 20 percent, 
                      from non-Federal sources of funding, unless the 
                      Administrator determines that the matching share 
                      would place an undue hardship on the eligible 
                      entity; and
                          ``(iv) contains such other terms and 
                      conditions as the Administrator determines to be 
                      necessary to carry out this subsection.
            ``(10) Facility other than brownfield site.--The fact that a 
        facility may not be a brownfield site within the meaning of 
        section 101(39)(A) has no effect on the eligibility of the 
        facility for assistance under any other provision of Federal 
        law.
            ``(11) Effect on federal laws.--Nothing in this subsection 
        affects any liability or response authority under any Federal 
        law, including--
                    ``(A) this Act (including the last sentence of 
                section 101(14));
                    ``(B) the Solid Waste Disposal Act (42 U.S.C. 6901 
                et seq.);
                    ``(C) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    ``(D) the Toxic Substances Control Act (15 U.S.C. 
                2601 et seq.); and
                    ``(E) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.).
            ``(12) Funding.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $200,000,000 for each of fiscal years 2002 
                through 2006.
                    ``(B) Use of certain funds.--Of the amount made 
                available under subparagraph (A), $50,000,000, or, if 
                the amount made available is less than $200,000,000, 25 
                percent of the amount made available, shall be used for 
                site characterization, assessment, and remediation of 
                facilities described in section 101(39)(D)(ii)(II).''.

            Subtitle B--Brownfields Liability Clarifications

SEC. 221. CONTIGUOUS PROPERTIES.

    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:
    ``(q) Contiguous Properties.--
            ``(1) Not considered to be an owner or operator.--
                    ``(A) In general.--A person that owns real property 
                that is contiguous to or otherwise similarly situated 
                with respect to, and that is or may be contaminated by a 
                release or threatened release of a hazardous substance 
                from, real

[[Page 115 STAT. 2369]]

                property that is not owned by that person 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--
                                    ``(I) potentially liable, or 
                                affiliated with any other person that is 
                                potentially liable, for response costs 
                                at a facility through any direct or 
                                indirect familial relationship or any 
                                contractual, corporate, or financial 
                                relationship (other than a contractual, 
                                corporate, or financial relationship 
                                that is created by a contract for the 
                                sale of goods or services); or
                                    ``(II) the result of a 
                                reorganization of a business entity that 
                                was potentially liable;
                          ``(iii) the person takes reasonable steps to--
                                    ``(I) stop any continuing release;
                                    ``(II) prevent any threatened future 
                                release; and
                                    ``(III) prevent or limit human, 
                                environmental, or natural resource 
                                exposure to any hazardous substance 
                                released on or from property owned by 
                                that person;
                          ``(iv) the person provides full cooperation, 
                      assistance, and access to persons that are 
                      authorized to conduct response actions or natural 
                      resource restoration 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 action or natural resource 
                      restoration at the vessel or facility);
                          ``(v) the person--
                                    ``(I) is in compliance with any land 
                                use restrictions established or relied 
                                on in connection with the response 
                                action at the facility; and
                                    ``(II) does not impede the 
                                effectiveness or integrity of any 
                                institutional control employed in 
                                connection with a response action;
                          ``(vi) the person is in compliance with any 
                      request for information or administrative subpoena 
                      issued by the President under this Act;
                          ``(vii) the person provides all legally 
                      required notices with respect to the discovery or 
                      release of any hazardous substances at the 
                      facility; and
                          ``(viii) at the time at which the person 
                      acquired the property, the person--
                                    ``(I) conducted all appropriate 
                                inquiry within the meaning of section 
                                101(35)(B) with respect to the property; 
                                and
                                    ``(II) did not know or have reason 
                                to know that the property was or could 
                                be contaminated by a release or 
                                threatened release of one or more 
                                hazardous substances from other real 
                                property not owned or operated by the 
                                person.

[[Page 115 STAT. 2370]]

                    ``(B) Demonstration.--To qualify as a person 
                described in subparagraph (A), a person must establish 
                by a preponderance of the evidence that the conditions 
                in clauses (i) through (viii) of subparagraph (A) have 
                been met.
                    ``(C) Bona fide prospective purchaser.--Any person 
                that does not qualify as a person described in this 
                paragraph because the person had, or had reason to have, 
                knowledge specified in subparagraph (A)(viii) at the 
                time of acquisition of the real property may qualify as 
                a bona fide prospective purchaser under section 101(40) 
                if the person is otherwise described in that section.
                    ``(D) Ground water.--With respect to a hazardous 
                substance from one or more sources that are not on the 
                property of a person that is a contiguous property owner 
                that enters ground water beneath the property of the 
                person solely as a result of subsurface migration in an 
                aquifer, subparagraph (A)(iii) shall not require the 
                person to conduct ground water investigations or to 
                install ground water remediation systems, except in 
                accordance with the policy of the Environmental 
                Protection Agency concerning owners of property 
                containing contaminated aquifers, dated May 24, 1995.
            ``(2) Effect of law.--With respect to a person described in 
        this subsection, nothing in this subsection--
                    ``(A) limits any defense to liability that may be 
                available to the person under any other provision of 
                law; or
                    ``(B) imposes liability on the person that is not 
                otherwise imposed by subsection (a).
            ``(3) Assurances.--The Administrator may--
                    ``(A) issue an assurance that no enforcement action 
                under this Act will be initiated against a person 
                described in paragraph (1); and
                    ``(B) grant a person described in paragraph (1) 
                protection against a cost recovery or contribution 
                action under section 113(f).''.

SEC. 222. 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) (as amended by section 211(a) of this Act) 
is amended by adding at the end the following:
            ``(40) Bona fide prospective purchaser.--The term `bona fide 
        prospective purchaser' means a person (or a tenant of a person) 
        that acquires ownership of a facility after the date of the 
        enactment of this paragraph and that establishes each of the 
        following by a preponderance of the evidence:
                    ``(A) Disposal prior to acquisition.--All disposal 
                of hazardous substances at the facility occurred before 
                the person acquired the facility.
                    ``(B) Inquiries.--
                          ``(i) In general.--The person made all 
                      appropriate inquiries into the previous ownership 
                      and uses of the facility in accordance with 
                      generally accepted good commercial and customary 
                      standards and practices in accordance with clauses 
                      (ii) and (iii).

[[Page 115 STAT. 2371]]

                          ``(ii) Standards and practices.--The standards 
                      and practices referred to in clauses (ii) and (iv) 
                      of paragraph (35)(B) shall be considered to 
                      satisfy the requirements of this subparagraph.
                          ``(iii) Residential use.--In the case of 
                      property in residential or other similar use at 
                      the time of purchase 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 provides all legally 
                required notices with respect to the discovery or 
                release of any hazardous substances at the facility.
                    ``(D) Care.--The person exercises appropriate care 
                with respect to hazardous substances found at the 
                facility by taking reasonable steps to--
                          ``(i) stop any continuing release;
                          ``(ii) prevent any threatened future release; 
                      and
                          ``(iii) prevent or limit human, environmental, 
                      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 authorized to conduct response 
                actions or natural resource restoration at a vessel or 
                facility (including the cooperation and access necessary 
                for the installation, integrity, operation, and 
                maintenance of any complete or partial response actions 
                or natural resource restoration at the vessel or 
                facility).
                    ``(F) Institutional control.--The person--
                          ``(i) is in compliance with any land use 
                      restrictions established or relied on in 
                      connection with the response action at a vessel or 
                      facility; and
                          ``(ii) does not impede the effectiveness or 
                      integrity of any institutional control employed at 
                      the vessel or facility in connection with a 
                      response action.
                    ``(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--
                          ``(i) potentially liable, or affiliated with 
                      any other person that is potentially liable, for 
                      response costs at a facility through--
                                    ``(I) any direct or indirect 
                                familial relationship; or
                                    ``(II) any contractual, corporate, 
                                or financial relationship (other than a 
                                contractual, corporate, or financial 
                                relationship that is created by the 
                                instruments by which title to the 
                                facility is conveyed or financed or by a 
                                contract for the sale of goods or 
                                services); or
                          ``(ii) the result of a reorganization of a 
                      business entity that was potentially liable.''.

    (b) Prospective Purchaser and Windfall Lien.--Section 107 of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9607) (as amended by this Act) is further amended by 
adding at the end the following:

[[Page 115 STAT. 2372]]

    ``(r) Prospective Purchaser and Windfall Lien.--
            ``(1) Limitation on liability.--Notwithstanding subsection 
        (a)(1), 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 
        incurred by the United States at a facility for which an owner 
        of the facility is not liable by reason of paragraph (1), and if 
        each of the conditions described in paragraph (3) is met, the 
        United States shall have a lien on the facility, or may by 
        agreement with the owner, obtain from the owner a lien on any 
        other property or other assurance of payment satisfactory to the 
        Administrator, for the unrecovered response 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 of the United States 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 
                before the response action was initiated.
            ``(4) Amount; duration.--A lien under paragraph (2)--
                    ``(A) shall be in an amount not to exceed the 
                increase in fair market value of the property 
                attributable to the response action at the time of a 
                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--
                          ``(i) satisfaction of the lien by sale or 
                      other means; or
                          ``(ii) notwithstanding any statute of 
                      limitations under section 113, recovery of all 
                      response costs incurred at the facility.''.

SEC. 223. INNOCENT LANDOWNERS.

    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 first sentence, in the matter preceding 
                clause (i), by striking ``deeds or'' and inserting 
                ``deeds, easements, leases, or''; and
                    (B) in the second sentence--
                          (i) by striking ``he'' and inserting ``the 
                      defendant''; and
                          (ii) by striking the period at the end and 
                      inserting ``, provides full cooperation, 
                      assistance, and facility access to the persons 
                      that are authorized to conduct

[[Page 115 STAT. 2373]]

                      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), is in compliance with any 
                      land use restrictions established or relied on in 
                      connection with the response action at a facility, 
                      and does not impede the effectiveness or integrity 
                      of any institutional control employed at the 
                      facility in connection with a response action.''; 
                      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 demonstrate to a court that--
                                    ``(I) on or before the date on which 
                                the defendant acquired the facility, the 
                                defendant carried out all appropriate 
                                inquiries, as provided in clauses (ii) 
                                and (iv), 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--
                                            ``(aa) stop any continuing 
                                        release;
                                            ``(bb) prevent any 
                                        threatened future release; and
                                            ``(cc) prevent or limit any 
                                        human, environmental, or natural 
                                        resource exposure to any 
                                        previously released hazardous 
                                        substance.
                          ``(ii) <<NOTE: Deadline. Regulations.>>  
                      Standards and practices.--Not later than 2 years 
                      after the date of the enactment of the Brownfields 
                      Revitalization and Environmental Restoration Act 
                      of 2001, the Administrator shall by regulation 
                      establish standards and practices for the purpose 
                      of satisfying the requirement to carry out all 
                      appropriate inquiries under clause (i).
                          ``(iii) Criteria.--In promulgating regulations 
                      that establish the standards and practices 
                      referred to in clause (ii), the Administrator 
                      shall include each of the following:
                                    ``(I) The results of an inquiry by 
                                an environmental professional.
                                    ``(II) Interviews with past and 
                                present owners, operators, and occupants 
                                of the facility for the purpose of 
                                gathering information regarding the 
                                potential for contamination at the 
                                facility.
                                    ``(III) 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.
                                    ``(IV) Searches for recorded 
                                environmental cleanup liens against the 
                                facility that are filed under Federal, 
                                State, or local law.

[[Page 115 STAT. 2374]]

                                    ``(V) Reviews of Federal, State, and 
                                local government records, waste disposal 
                                records, underground storage tank 
                                records, and hazardous waste handling, 
                                generation, treatment, disposal, and 
                                spill records, concerning contamination 
                                at or near the facility.
                                    ``(VI) Visual inspections of the 
                                facility and of adjoining properties.
                                    ``(VII) Specialized knowledge or 
                                experience on the part of the defendant.
                                    ``(VIII) The relationship of the 
                                purchase price to the value of the 
                                property, if the property was not 
                                contaminated.
                                    ``(IX) Commonly known or reasonably 
                                ascertainable information about the 
                                property.
                                    ``(X) The degree of obviousness of 
                                the presence or likely presence of 
                                contamination at the property, and the 
                                ability to detect the contamination by 
                                appropriate investigation.
                          ``(iv) Interim standards and practices.--
                                    ``(I) Property purchased before may 
                                31, 1997.-- <<NOTE: Courts.>> With 
                                respect to property purchased before May 
                                31, 1997, in making a determination with 
                                respect to a defendant described in 
                                clause (i), a court shall take into 
                                account--
                                            ``(aa) any specialized 
                                        knowledge or experience on the 
                                        part of the defendant;
                                            ``(bb) the relationship of 
                                        the purchase price to the value 
                                        of the property, if the property 
                                        was not contaminated;
                                            ``(cc) commonly known or 
                                        reasonably ascertainable 
                                        information about the property;
                                            ``(dd) the obviousness of 
                                        the presence or likely presence 
                                        of contamination at the 
                                        property; and
                                            ``(ee) the ability of the 
                                        defendant to detect the 
                                        contamination by appropriate 
                                        inspection.
                                    ``(II) Property purchased on or 
                                after may 31, 1997.--With respect to 
                                property purchased on or after May 31, 
                                1997, and until the Administrator 
                                promulgates the regulations described in 
                                clause (ii), the procedures of the 
                                American Society for Testing and 
                                Materials, including the document known 
                                as `Standard E1527-97', entitled 
                                `Standard Practice for Environmental 
                                Site Assessment: Phase 1 Environmental 
                                Site Assessment Process', shall satisfy 
                                the requirements in clause (i).
                          ``(v) 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.''.

[[Page 115 STAT. 2375]]

                   Subtitle C--State Response Programs

SEC. 231. 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 this Act) is further amended by adding at the end the 
following:
            ``(41) Eligible response site.--
                    ``(A) In general.--The term `eligible response site' 
                means a site that meets the definition of a brownfield 
                site in subparagraphs (A) and (B) of paragraph (39), as 
                modified by subparagraphs (B) and (C) of this paragraph.
                    ``(B) Inclusions.--The term `eligible response site' 
                includes--
                          ``(i) notwithstanding paragraph (39)(B)(ix), 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; or
                          ``(ii) <<NOTE: President.>>  a site for which, 
                      notwithstanding the exclusions provided in 
                      subparagraph (C) or paragraph (39)(B), the 
                      President determines, on a site-by-site basis and 
                      after consultation with the State, that 
                      limitations on enforcement under section 128 at 
                      sites specified in clause (iv), (v), (vi) or 
                      (viii) of paragraph (39)(B) would be appropriate 
                      and will--
                                    ``(I) protect human health and the 
                                environment; and
                                    ``(II) promote economic development 
                                or facilitate the creation of, 
                                preservation of, or addition to a park, 
                                a greenway, undeveloped property, 
                                recreational property, or other property 
                                used for nonprofit purposes.
                    ``(C) Exclusions.--The term `eligible response site' 
                does not include--
                          ``(i) a facility for which the President--
                                    ``(I) conducts or has conducted a 
                                preliminary assessment or site 
                                inspection; and
                                    ``(II) after consultation with the 
                                State, determines or has determined that 
                                the site obtains a preliminary score 
                                sufficient for possible listing on the 
                                National Priorities List, or that the 
                                site otherwise qualifies for listing on 
                                the National Priorities List; unless the 
                                President has made a determination that 
                                no further Federal action will be taken; 
                                or
                          ``(ii) facilities that the President 
                      determines warrant particular consideration as 
                      identified by regulation, such as sites posing a 
                      threat to a sole-source drinking water aquifer or 
                      a sensitive ecosystem.''.

    (b) State Response Programs.--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:

[[Page 115 STAT. 2376]]

``SEC. 128. <<NOTE: 42 USC 9628.>>  STATE RESPONSE PROGRAMS.

    ``(a) Assistance to States.--
            ``(1) In general.--
                    ``(A) States.--The Administrator may award a grant 
                to a State or Indian tribe that--
                          ``(i) has a response program that includes 
                      each of the elements, or is taking reasonable 
                      steps to include each of the elements, listed in 
                      paragraph (2); or
                          ``(ii) is a party to a memorandum of agreement 
                      with the Administrator for voluntary response 
                      programs.
                    ``(B) Use of grants by states.--
                          ``(i) In general.--A State or Indian tribe may 
                      use a grant under this subsection to establish or 
                      enhance the response program of the State or 
                      Indian tribe.
                          ``(ii) Additional uses.--In addition to the 
                      uses under clause (i), a State or Indian tribe may 
                      use a grant under this subsection to--
                                    ``(I) capitalize a revolving loan 
                                fund for brownfield remediation under 
                                section 104(k)(3); or
                                    ``(II) purchase insurance or develop 
                                a risk sharing pool, an indemnity pool, 
                                or insurance mechanism to provide 
                                financing for response actions under a 
                                State response program.
            ``(2) Elements.--The elements of a State or Indian tribe 
        response program referred to in paragraph (1)(A)(i) are the 
        following:
                    ``(A) Timely survey and inventory of brownfield 
                sites in the State.
                    ``(B) Oversight and enforcement authorities or other 
                mechanisms, and resources, that are adequate to ensure 
                that--
                          ``(i) a response action will--
                                    ``(I) protect human health and the 
                                environment; and
                                    ``(II) be conducted in accordance 
                                with applicable Federal and State law; 
                                and
                          ``(ii) if the person conducting the response 
                      action fails to complete the necessary response 
                      activities, including operation and maintenance or 
                      long-term monitoring activities, the necessary 
                      response activities are completed.
                    ``(C) Mechanisms and resources to provide meaningful 
                opportunities for public participation, including--
                          ``(i) public access to documents that the 
                      State, Indian tribe, or party conducting the 
                      cleanup is relying on or developing in making 
                      cleanup decisions or conducting site activities;
                          ``(ii) prior notice and opportunity for 
                      comment on proposed cleanup plans and site 
                      activities; and
                          ``(iii) a mechanism by which--
                                    ``(I) a person that is or may be 
                                affected by a release or threatened 
                                release of a hazardous substance, 
                                pollutant, or contaminant at a 
                                brownfield site located in the community 
                                in which

[[Page 115 STAT. 2377]]

                                the person works or resides may request 
                                the conduct of a site assessment; and
                                    ``(II) an appropriate State official 
                                shall consider and appropriately respond 
                                to a request under subclause (I).
                    ``(D) Mechanisms for approval of a cleanup plan, and 
                a requirement for verification by and certification or 
                similar documentation from the State, an Indian tribe, 
                or a licensed site professional to the person conducting 
                a response action indicating that the response is 
                complete.
            ``(3) Funding.--There is authorized to be appropriated to 
        carry out this subsection $50,000,000 for each of fiscal years 
        2002 through 2006.

    ``(b) Enforcement in Cases of a Release Subject to State Program.--
            ``(1) Enforcement.--
                    ``(A) In general.-- Except as provided in 
                subparagraph (B) and subject to subparagraph (C), in the 
                case of an eligible response site at which--
                          ``(i) there is a release or threatened release 
                      of a hazardous substance, pollutant, or 
                      contaminant; and
                          ``(ii) a person is conducting or has completed 
                      a response action regarding the specific release 
                      that is addressed by the response action that is 
                      in compliance with the State program that 
                      specifically governs response actions for the 
                      protection of public health and the environment,
                the President may not use authority under this Act to 
                take an administrative or judicial enforcement action 
                under section 106(a) or to take a judicial enforcement 
                action to recover response costs under section 107(a) 
                against the person regarding the specific release that 
                is addressed by the response action.
                    ``(B) Exceptions.--The President may bring an 
                administrative or judicial enforcement action under this 
                Act during or after completion of a response action 
                described in subparagraph (A) with respect to a release 
                or threatened release at an eligible response site 
                described in that subparagraph if--
                          ``(i) the State requests that the President 
                      provide assistance in the performance of a 
                      response action;
                          ``(ii) the Administrator determines that 
                      contamination has migrated or will migrate across 
                      a State line, resulting in the need for further 
                      response action to protect human health or the 
                      environment, or the President determines that 
                      contamination has migrated or is likely to migrate 
                      onto property subject to the jurisdiction, 
                      custody, or control of a department, agency, or 
                      instrumentality of the United States and may 
                      impact the authorized purposes of the Federal 
                      property;
                          ``(iii) after taking into consideration the 
                      response activities already taken, the 
                      Administrator determines that--
                                    ``(I) a release or threatened 
                                release may present an imminent and 
                                substantial endangerment to public 
                                health or welfare or the environment; 
                                and

[[Page 115 STAT. 2378]]

                                    ``(II) additional response actions 
                                are likely to be necessary to address, 
                                prevent, limit, or mitigate the release 
                                or threatened release; or
                          ``(iv) the Administrator, after consultation 
                      with the State, determines that information, that 
                      on the earlier of the date on which cleanup was 
                      approved or completed, was not known by the State, 
                      as recorded in documents prepared or relied on in 
                      selecting or conducting the cleanup, has been 
                      discovered regarding the contamination or 
                      conditions at a facility such that the 
                      contamination or conditions at the facility 
                      present a threat requiring further remediation to 
                      protect public health or welfare or the 
                      environment. Consultation with the State shall not 
                      limit the ability of the Administrator to make 
                      this determination.
                    ``(C) <<NOTE: Applicability.>>  Public record.--The 
                limitations on the authority of the President under 
                subparagraph (A) apply only at sites in States that 
                maintain, update not less than annually, and make 
                available to the public a record of sites, by name and 
                location, at which response actions have been completed 
                in the previous year and are planned to be addressed 
                under the State program that specifically governs 
                response actions for the protection of public health and 
                the environment in the upcoming year. The public record 
                shall identify whether or not the site, on completion of 
                the response action, will be suitable for unrestricted 
                use and, if not, shall identify the institutional 
                controls relied on in the remedy. Each State and tribe 
                receiving financial assistance under subsection (a) 
                shall maintain and make available to the public a record 
                of sites as provided in this paragraph.
                    ``(D) EPA notification.--
                          ``(i) In general.--In the case of an eligible 
                      response site at which there is a release or 
                      threatened release of a hazardous substance, 
                      pollutant, or contaminant and for which the 
                      Administrator intends to carry out an action that 
                      may be barred under subparagraph (A), the 
                      Administrator shall--
                                    ``(I) notify the State of the action 
                                the Administrator intends to take; and
                                    ``(II)(aa) wait 48 hours for a reply 
                                from the State under clause (ii); or
                                    ``(bb) if the State fails to reply 
                                to the notification or if the 
                                Administrator makes a determination 
                                under clause (iii), take immediate 
                                action under that clause.
                          ``(ii) <<NOTE: Deadline.>>  State reply.--Not 
                      later than 48 hours after a State receives notice 
                      from the Administrator under clause (i), the State 
                      shall notify the Administrator if--
                                    ``(I) the release at the eligible 
                                response site is or has been subject to 
                                a cleanup conducted under a State 
                                program; and
                                    ``(II) the State is planning to 
                                abate the release or threatened release, 
                                any actions that are planned.
                          ``(iii) Immediate federal action.--The 
                      Administrator may take action immediately after 
                      giving

[[Page 115 STAT. 2379]]

                      notification under clause (i) without waiting for 
                      a State reply under clause (ii) if the 
                      Administrator determines that one or more 
                      exceptions under subparagraph (B) are met.
                    ``(E) <<NOTE: Deadline. President.>>  Report to 
                congress.--Not later than 90 days after the date of 
                initiation of any enforcement action by the President 
                under clause (ii), (iii), or (iv) of subparagraph (B), 
                the President shall submit to Congress a report 
                describing the basis for the enforcement action, 
                including specific references to the facts demonstrating 
                that enforcement action is permitted under subparagraph 
                (B).
            ``(2) Savings provision.--
                    ``(A) Costs incurred prior to limitations.--Nothing 
                in paragraph (1) precludes the President from seeking to 
                recover costs incurred prior to the date of the 
                enactment of this section or during a period in which 
                the limitations of paragraph (1)(A) were not applicable.
                    ``(B) Effect on agreements between states and epa.--
                Nothing in paragraph (1)--
                          ``(i) modifies or otherwise affects a 
                      memorandum of agreement, memorandum of 
                      understanding, or any similar agreement relating 
                      to this Act between a State agency or an Indian 
                      tribe and the Administrator that is in effect on 
                      or before the date of the enactment of this 
                      section (which agreement shall remain in effect, 
                      subject to the terms of the agreement); or
                          ``(ii) limits the discretionary authority of 
                      the President to enter into or modify an agreement 
                      with a State, an Indian tribe, or any other person 
                      relating to the implementation by the President of 
                      statutory authorities.
            ``(3) <<NOTE: Applicability.>>  Effective date.--This 
        subsection applies only to response actions conducted after 
        February 15, 2001.

    ``(c) Effect on Federal Laws.--Nothing in this section affects any 
liability or response authority under any Federal law, including--
            ``(1) this Act, except as provided in subsection (b);
            ``(2) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);
            ``(3) the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et seq.);
            ``(4) the Toxic Substances Control Act (15 U.S.C. 2601 et 
        seq.); and
            ``(5) the Safe Drinking Water Act (42 U.S.C. 300f et 
        seq.).''.

SEC. 232. ADDITIONS TO NATIONAL PRIORITIES LIST.

    Section 105 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9605) is amended by 
adding at the end the following:
    ``(h) NPL Deferral.--
            ``(1) <<NOTE: President.>>  Deferral to state voluntary 
        cleanups.--At the request of a State and subject to paragraphs 
        (2) and (3), the President generally shall defer final listing 
        of an eligible response site on the National Priorities List if 
        the President determines that--
                    ``(A) the State, or another party under an agreement 
                with or order from the State, is conducting a response 
                action at the eligible response site--

[[Page 115 STAT. 2380]]

                          ``(i) in compliance with a State program that 
                      specifically governs response actions for the 
                      protection of public health and the environment; 
                      and
                          ``(ii) that will provide long-term protection 
                      of human health and the environment; or
                    ``(B) the State is actively pursuing an agreement to 
                perform a response action described in subparagraph (A) 
                at the site with a person that the State has reason to 
                believe is capable of conducting a response action that 
                meets the requirements of subparagraph (A).
            ``(2) Progress toward cleanup.--If, after the last day of 
        the 1-year period beginning on the date on which the President 
        proposes to list an eligible response site on the National 
        Priorities List, the President determines that the State or 
        other party is not making reasonable progress toward completing 
        a response action at the eligible response site, the President 
        may list the eligible response site on the National Priorities 
        List.
            ``(3) Cleanup agreements.--With respect to an eligible 
        response site under paragraph (1)(B), if, after the last day of 
        the 1-year period beginning on the date on which the President 
        proposes to list the eligible response site on the National 
        Priorities List, an agreement described in paragraph (1)(B) has 
        not been reached, the President may defer the listing of the 
        eligible response site on the National Priorities List for an 
        additional period of not to exceed 180 days if the President 
        determines deferring the listing would be appropriate based on--
                    ``(A) the complexity of the site;
                    ``(B) substantial progress made in negotiations; and
                    ``(C) other appropriate factors, as determined by 
                the President.
            ``(4) Exceptions.--The President may decline to defer, or 
        elect to discontinue a deferral of, a listing of an eligible 
        response site on the National Priorities List if the President 
        determines that--
                    ``(A) deferral would not be appropriate because the 
                State, as an owner or operator or a significant 
                contributor of hazardous substances to the facility, is 
                a potentially responsible party;
                    ``(B) the criteria under the National Contingency 
                Plan for issuance of a health advisory have been met; or

[[Page 115 STAT. 2381]]

                    ``(C) the conditions in paragraphs (1) through (3), 
                as applicable, are no longer being met.''.

    Approved January 11, 2002.

LEGISLATIVE HISTORY--H.R. 2869:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 147 (2001):
            Dec. 19, considered and passed House.
            Dec. 20, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001):
            Jan. 11, Presidential remarks.

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