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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1994 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1994

 To amend the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 to make comprehensive improvements in provisions 
  relating to liability, State implementation, remedy selection, and 
                    funding, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             March 25 (legislative day, February 22), 1994

 Mr. Smith (for himself, Mr. Gregg, Mr. Faircloth, and Mr. Kempthorne) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 to make comprehensive improvements in provisions 
  relating to liability, State implementation, remedy selection, and 
                    funding, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive Superfund Improvement 
Act''.

SEC. 2. TABLE OF CONTENTS.

            The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                           TITLE I--LIABILITY

Sec. 101. Release of evidence.
Sec. 102. Elimination of retroactive liability.
Sec. 103. Limitation on liability of certain owners and operators.
Sec. 104. Contribution protection.
Sec. 105. Contiguous properties.
Sec. 106. Lender and fiduciary liability.
Sec. 107. Definitions.
Sec. 108. Assignment of shares of liability for costs of response 
                            actions at national priority list sites.
Sec. 109. Enforcement of response actions through joint and several 
                            liability.
Sec. 110. Establishment of binding allocation of responsibility 
                            process.
Sec. 111. Site redevelopment.
Sec. 112. Liability of response action contractors.
                     TITLE II--STATE IMPLEMENTATION

Sec. 201. State authority.
Sec. 202. Transfer of authorities.
Sec. 203. EPA oversight costs.
                      TITLE III--REMEDY SELECTION

Sec. 301. Immediate risk reduction measures.
Sec. 302. Site scoring.
Sec. 303. Long-term response plan.
Sec. 304. Long-term response selection.
Sec. 305. Periodic review.
Sec. 306. Delisting of facilities and sites.
                           TITLE IV--FUNDING

Sec. 401. 5-year extension of Hazardous Substance Superfund.
Sec. 402. Increase in environmental income tax.
Sec. 403. Environmental fees and assessments on insurance companies.
Sec. 404. Retroactive Liability Fund.

                           TITLE I--LIABILITY

SEC. 101. RELEASE OF EVIDENCE.

    (a) Timely Access to Information Furnished Under Section 104(e).--
Section 104(e)(7)(A) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9604(e)(7)(A)) is 
amended by inserting after ``shall be available to the public'' the 
following: ``not later than 14 days after the records, reports, or 
information is obtained''.
    (b) Requirement To Provide PRPs Evidence of Liability.--(1) 
Subsection (a) of section 106 of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)) 
is amended by adding at the end the following: ``In any case in which 
the President issues an order to a person under this subsection, the 
President shall provide information concerning the evidence that 
indicates that each element of liability contained in subparagraph (A), 
(B), (C), or (D) of section 107(a)(1) is present.''.
    (2) Section 122(e)(1) of such Act is amended by inserting after 
subparagraph (C) the following:
                    ``(D) For each potentially responsible party, the 
                evidence that indicates that each element of liability 
                contained in subparagraph (A), (B), (C), or (D) of 
                section 107(a)(1) is present.''.

SEC. 102. ELIMINATION OF RETROACTIVE LIABILITY.

    Section 107 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)) is amended 
by adding at the end the following new subsection:
    ``(n) Retroactive Liability Cut-Off Date; Cost Reimbursement 
Provisions.--
            ``(1) In general.--Subject to the provisions in this 
        subsection, a person is liable under this section only for 
        actions occurring after December 11, 1980. The provisions of 
        this subsection shall not apply to actions occurring before 
        December 11, 1980, which were contrary to a law at the time of 
        the actions. Reimbursement or payment from the Retroactive 
        Liability Fund (established by section 9512 of the Internal 
        Revenue Code of 1986) shall be made pursuant to section 508.
            ``(2) Pre-1981 sites.--With respect to sites or facilities 
        with respect to which all actions for which liability arising 
        under this Act occurred before December 11, 1980, the following 
        rules apply:
                    ``(A) Construction completed.--For such sites or 
                facilities where the construction of the response 
                action has been completed by January 1, 1994, no 
                reimbursement may be made from the Retroactivity 
                Liability Fund to the potentially responsible parties 
                concerned for costs incurred for such construction. If 
                a potentially responsible party is conducting operation 
                and maintenance related to the response action at the 
                site or facility as of January 1, 1994, the President 
                shall assume the future costs of such operation and 
                maintenance and shall reimburse the party for such 
                costs incurred.
                    ``(B) Construction ongoing.--For such sites or 
                facilities where the construction of the response 
                action has not been completed by January 1, 1994, 
                reimbursement may be made to the potentially 
                responsible parties concerned for costs incurred for 
                such construction, but only after the construction is 
                completed. After construction is complete, the 
                President shall assume future costs for any operation 
                and maintenance related to the response action.
                    ``(C) Discovery after january 1, 1994.--For such 
                sites or facilities that are discovered after January 
                1, 1994, the President shall use amounts from the 
                Retroactive Liability Fund to pay for all costs of the 
                response action. Such costs shall not include 
                attorney's fees or other costs associated with 
                litigation related to the response action.
            ``(3) Straddle sites.--With respect to sites or facilities 
        with respect to which actions for which liability arising under 
        this Act occurred both before and after December 11, 1980, the 
        following rules apply:
                    ``(A) Construction completed.--For such sites or 
                facilities where the construction of the response 
                action has been completed by January 1, 1994, no 
                reimbursement may be made from the Retroactive 
                Liability Fund to the potentially responsible parties 
                concerned for costs incurred for such construction. If 
                a potentially responsible party is conducting operation 
                and maintenance related to the response action at the 
                site or facility as of January 1, 1994, the potentially 
                responsible party may, within 90 days after the date of 
                enactment of the Comprehensive Superfund Improvement 
                Act, petition the President for an allocation (in 
                accordance with title V) of the operation and 
                maintenance costs. The allocation shall determine which 
                portion of the operation and maintenance costs are 
                attributable to actions occurring before December 11, 
                1980, and which are attributable to actions occurring 
                after such date, and shall provide for the 
                reimbursement of the potentially responsible party, 
                from the Retroactive Liability Fund, of those costs 
                attributable to actions occurring before December 11, 
                1980.
                    ``(B) Construction ongoing.--For such sites or 
                facilities where the construction of the response 
                action has not been completed by January 1, 1994, the 
                potentially responsible parties concerned shall 
                complete construction and conduct any required 
                operation and maintenance. A potentially responsible 
                party may, within 90 days after construction of the 
                response action is complete, petition the President for 
                an allocation (in accordance with title V) of both the 
                construction and operation and maintenance costs. The 
                allocation shall determine which portion of the 
                construction and operation and maintenance costs are 
                attributable to actions occurring before December 11, 
                1980, and which are attributable to actions occurring 
                after such date, and shall provide for the 
                reimbursement of the potentially responsible party, 
                from the Retroactive Liability Fund, of those costs 
                attributable to actions occurring before December 11, 
                1980.
                    ``(C) Discovery after january 1, 1994.--For such 
                sites or facilities that are discovered after January 
                1, 1994, the President shall use amounts from the 
                Retroactive Liability Fund to pay for costs of the 
                response action, including construction and operation 
                and maintenance, attributable to actions occurring 
                before December 11, 1980.
            ``(4) Definitions.--In this subsection:
                    ``(A) The term `actions' includes ownership or 
                operation of a facility at which hazardous substances 
                were disposed of, disposal of hazardous substances, 
                arrangement with a transporter for transport for 
                disposal or treatment of a hazardous substance, and any 
                other activities described in subsection (a).
                    ``(B) The term `person' has the meaning provided in 
                section 101(21) but does not include the United States 
                Government.

SEC. 103. LIMITATION ON LIABILITY OF CERTAIN OWNERS AND OPERATORS.

    (a) Exemption for Grantees of Certain Easements.--Subsection (a) of 
section 107 of the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9607(a)) is amended--
            (1) in paragraph (4), by striking out ``shall be liable 
        for--'' and inserting in lieu thereof ``shall be liable, except 
        as provided in paragraph (4), for the costs and damages set 
        forth in paragraph (2).'';
            (2) by inserting before subparagraph (A) the following:
    ``(2) The costs and damages for which persons described in 
paragraph (1) shall be liable are--'';
            (3) by aligning the margins of subparagraphs (A), (B), (C), 
        and (D) so as to be cut in two ems;
            (4) by inserting ``(1)'' before ``Notwithstanding any other 
        provision or rule of law,'';
            (5) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively;
            (6) by inserting ``(3)'' before the text beginning with 
        ``The amounts recoverable in an action under this section'' 
        (and aligning such text as a paragraph below paragraphs (1) and 
        (2) (as redesignated)) and in that text--
                    (A) by inserting ``of paragraph (2)'' after 
                ``subparagraphs (A) through (D)'';
                    (B) by striking out ``(i)'' and inserting in lieu 
                thereof ``(A)''; and
                    (C) by striking out ``(ii)'' and inserting in lieu 
                thereof ``(B)''; and
            (7) by adding at the end the following new paragraph:
    ``(4) In the case of a person who is a qualified organization under 
section 170(h)(3) of the Internal Revenue Code of 1986 and who is the 
grantee of a conservation easement with respect to real property on 
which a facility is located, the person shall not be considered an 
owner or operator of the facility under subparagraph (A) or (B) of 
paragraph (1) unless the person, by any act or omission, causes or 
contributes to the release or threatened release of a hazardous 
substance that causes the incurrence of response costs. For purposes of 
this paragraph, the term ``conservation easement'' means a restriction 
on the use of land for purposes of protecting in perpetuity a 
conservation purpose listed in section 170(h)(4) of the Internal 
Revenue Code of 1986.
    (b) Safe Harbor for Innocent Landowner Defense.--(1) Section 
101(35) of the Comprehensive Environmental Response, Compensation and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.) is amended by 
redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), 
respectively and inserting after subparagraph (B), the following:
    ``(C)(i) A defendant who has acquired real property shall have 
established a rebuttable presumption that he has made all appropriate 
inquiry within the meaning of subparagraph (B) if he establishes that, 
immediately prior to or at the time of acquisition, he obtained an 
environmental assessment of the real property which meets the 
requirements of this subparagraph.
    ``(ii) For purposes of this subparagraph, the term `environmental 
professional' means an individual, or an entity managed or controlled 
by such individual who, through academic training, occupational 
experience and reputation (such as engineers, environmental consultants 
and attorneys), can objectively conduct one or more aspects of an 
environmental assessment. For purposes of this subparagraph, the term 
`environmental assessment' means an investigation of the real property, 
conducted by environmental professionals, to determine or discover the 
likelihood of the presence or substantial reason to suspect the 
presence of a release or threatened release of hazardous substances on 
the real property and which consists of a review of each of the 
following sources of information concerning the previous ownership and 
uses of the real property:
            ``(I) Recorded chain of title documents regarding the real 
        property, including all deeds, easements, leases, restrictions, 
        and covenants for a period of 50 years.
            ``(II) Aerial photographs which may reflect prior uses of 
        the real property and which are reasonably accessible through 
        State or local government agencies.
            ``(III) Determination of the existence of recorded 
        environmental cleanup liens against the real property which 
        have arisen pursuant to Federal, State, and local statutes.
            ``(IV) Reasonably obtainable Federal, State, and local 
        government records of sites or facilities where there has been 
        a release of hazardous substances and which are likely to cause 
        or contribute to a release or threatened release of hazardous 
        substances on the real property, including investigation 
        reports for such sites or facilities; reasonably obtainable 
        Federal, State, and local government environmental records of 
        activities likely to cause or contribute to a release or a 
        threatened release of hazardous substances on the real 
        property, including landfill and other disposal location 
        records, underground storage tank records, hazardous waste 
        handler and generator records and spill reporting records; and 
        such other reasonably obtainable Federal, State, and local 
        government environmental records which report incidents or 
        activities which are likely to cause or contribute to a release 
        or threatened release of hazardous substances on the real 
        property. A record is considered to be reasonably obtainable 
        for purposes of this subclause if a copy or reasonable 
        facsimile of the record is obtainable from the government 
        agency by request.
            ``(V) A visual site inspection of the real property and all 
        facilities and improvements on the real property, and a visual 
        inspection of immediately adjacent properties from the real 
        property, including an investigation of any chemical use, 
        storage, treatment and disposal practices on the property.
    ``(iii) No presumption shall arise under clause (i) unless the 
defendant has maintained a compilation of the information reviewed in 
the course of the  environmental assessment.
    ``(iv) Notwithstanding any other provision of this paragraph, if 
the environmental assessment discloses the presence or likely presence 
of a release or threatened release of hazardous substances on the real 
property to be acquired, no presumption shall arise under clause (i) 
with respect to such release or threatened release unless the defendant 
has taken reasonable steps, in accordance with current technology 
available, existing regulations, and generally acceptable engineering 
practices, as may be necessary to confirm the absence of such release 
or threatened release.''.
    (2) Subparagraph (C) of section 101(35) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, as 
added by paragraph (1), shall take effect on the date of the enactment 
of this Act.

SEC. 104. CONTRIBUTION PROTECTION.

    Section 113(f)(2) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9613(f)(2)) is 
amended in the first sentence by inserting ``or cost recovery'' after 
``contribution''.

SEC. 105. CONTIGUOUS PROPERTIES.

    Section 107(a) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)), as amended 
by section 103(a), is further amended by adding at the end the 
following new paragraph:
    ``(5) A person who owns or operates real property that is 
contiguous to or otherwise situated with respect to real property on 
which there has been a release of a hazardous substance and that is or 
may be contaminated by such release shall not be considered an owner or 
operator of a facility under paragraph (1)(A) solely by reason of such 
contamination. The President may issue assurances of no enforcement 
action under this Act to any such person and may grant any such person 
protection against cost recovery and contribution actions pursuant to 
section 113(f)(2).''.

SEC. 106. LENDER AND FIDUCIARY LIABILITY.

    (a) Rulemaking Authority for Security Interest Exemption.--Section 
115 of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (15 U.S.C. 9615) is amended--
            (1) by redesignating the text of the section as subsection 
        (a); and
            (2) by adding at the end the following:
    ``(b)(1) Pursuant to the authority conferred by this section, the 
President shall issue, within 30 days after the date of enactment of 
the Comprehensive Superfund Improvement Act, regulations to define the 
terms of this Act as they apply to lenders and other financial services 
providers. These regulations shall clarify the definition of the term 
`owner or operator' contained in section 101(20)(A) by--
            ``(A) defining the terms `indicia of ownership', `security 
        interest', `primarily to protect a security interest', and 
        `participation in management'; and
            ``(B) specifying the types of activities that may be 
        undertaken without voiding the exemption to liability provided 
        by section 101(20)(A).
    ``(2) The following clarifications shall be included among the 
provisions in the regulations issued under paragraph (1):
            ``(A) The term `participation in management' does not 
        include--
                    ``(i) the mere capacity to influence, or ability to 
                influence, or the unexercised right to control facility 
                operations; or
                    ``(ii) any act of the security interest holder to 
                require another person or itself, to comply with 
                applicable laws or to respond lawfully to disposal of 
                any hazardous substance.
            ``(B) A security interest holder will not be deemed to be 
        participating in management of a facility unless the security 
        interest holder--
                    ``(i) has undertaken responsibility for the 
                facility's hazardous substance handling or disposal 
                practices; or
                    ``(ii) has undertaken overall management of the 
                facility encompassing day-to-day decisionmaking over 
                either environmental compliance or over the 
                operational, as opposed to financial and 
                administrative, aspects of the facility.
            ``(C) Legal or equitable title acquired by a security 
        interest holder through foreclosure or its equivalents will be 
        deemed to be held primarily to protect a security interest 
        provided that the holder undertakes to sell, re-lease, or 
        otherwise divest the property in a reasonably expeditious 
        manner on commercially reasonable terms.''.
    (b) Protection for Fiduciaries From Individual Liability.--(1) 
Section 101(20) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601(20)) is amended 
by adding at the end the following new subparagraph:
            ``(E)(i) The term `owner or operator' does not include a 
        fiduciary who holds legal title to, is the mortgagee or secured 
        party with respect to, controls, or manages, directly or 
        indirectly, any facility or vessel for purposes of 
        administering an estate or trust of which such facility or 
        vessel is a part.
            (ii) For purposes of clause (i), the term `fiduciary' means 
        a person who is acting in any of the following representative 
        capacities, but only to the extent such person is acting in 
        such representative capacity:
                    ``(I) An executor or administrator of an estate, 
                including a voluntary executor or a voluntary 
                administrator.
                    ``(II) A guardian.
                    ``(III) A conservator.
                    ``(IV) A trustee under a will under which the 
                trustee takes title to, or otherwise controls or 
                manages, property for the purpose of protecting or 
                conserving such property under the ordinary rules 
                applied in State courts.
                    ``(V) A court-appointed receiver.
                    ``(VI) A trustee appointed in proceedings under 
                Federal bankruptcy laws.
                    ``(VII) An assignee or a trustee acting under an 
                assignment made for the benefit of creditors.
                    ``(VIII) A trustee, or any successor thereto, 
                pursuant to an indenture agreement, trust agreement, 
                lease, or similar financing agreement, for debt 
                securities, certificates of interest of participation 
                in any such debt securities, or other forms of 
                indebtedness as to which it is not, in its capacity as 
                trustee, the lender.''.
    (2) Section 107 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607), as amended by 
sections 102 and 103, is further amended by adding at the end the 
following new subsection:
    ``(m) Fiduciary Liability.--(1) Except as provided in paragraph 
(3), a fiduciary (as defined in section 101(20)) shall not be liable in 
its individual capacity under this section.
    ``(2) Nothing in this paragraph may be construed as preventing 
claims under this Act against--
            ``(A) the assets of the estate or trust administered by a 
        fiduciary; or
            ``(B) non-employee agents or independent contractors 
        retained by a fiduciary.
    ``(3) Nothing in this paragraph may be construed as preventing 
claims under this Act against a fiduciary in its individual capacity 
whose negligent acts or intentional misconduct caused a release or 
threatened release of hazardous substances at a facility or vessel. A 
fiduciary shall not be attributed with the negligence or intentional 
misconduct of non-employee agents or independent contractors if the 
fiduciary has conducted itself without negligence or intentional 
misconduct with regard to its relationship with such agents or 
contractors.''.

SEC. 107. DEFINITIONS.

    Section 101 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601), is amended by 
adding at the end the following:
            ``(39) The term `potentially responsible party' means any 
        person identified as potentially liable under section 107, 
        potentially responsible to perform any response action under 
        sections 104 or 106, or potentially liable for contribution 
        under section 113.
            ``(40) The term `de micromis party' means a potentially 
        responsible party who is a generator or transporter who 
        contributed less than 100 pounds or 100 liters of material 
        containing hazardous substances at a facility, or such greater 
        or lesser amount as the Administrator may determine by 
        regulation.
            ``(41) The term `de minimis party' means a liable party 
        whose assigned share of liability is determined to be 1.0 
        percent or less in a final binding allocation of responsibility 
        decision under title V.
            ``(42) The term `liable party' means any potentially 
        responsible party determined by an allocation panel or a court 
        to be liable under section 107, responsible to perform any 
        action under sections 104 or 106, or liable for contribution 
        under section 113.
            ``(43) The term `assigned share' means the percentage of 
        liability assigned, in accordance with the factors set forth in 
        section 503(g)(2), to a liable party by an allocation panel in 
        a binding allocation of responsibility or by a court of law.
            ``(44) The term `orphan party' means a liable party at a 
        site who is defunct, unknown, insolvent, or whose assigned 
        share has been subject to discharge or limitation in 
        bankruptcy, or who is otherwise financially unable to pay all 
        or part of its assigned share.
            ``(45) The term `creditor party' means the Administrator, a 
        State, or any person who is determined to be a liable party 
        with respect to a National Priority List site and who incurs or 
        has incurred costs with respect to the site that are not 
        inconsistent with the National Contingency Plan.
            ``(46) The term `debtor party' means the Hazardous 
        Substance Superfund and any person who is determined to be a 
        liable party with respect to a National Priority List site.
            ``(47) The term `binding allocation of responsibility' 
        means a final binding determination by an allocation panel 
        pursuant to title V.
            ``(48) The term `orphan share' means the total of the 
        assigned shares of all orphan parties at a site, including all 
        shares eligible for reimbursement or payment pursuant to 
        section 107(n).
            ``(49) The term `guardian of the fund' or `guardian' means 
        the person appointed by the Administrator to represent the 
        Environmental Protection Agency in a binding allocation of 
        responsibility proceeding.
            ``(50) The term `National Priority List site' means any 
        site or facility that the Administrator has listed on, or 
        proposed for listing on, the list established pursuant to 
        section 105(a)(8)(B).''.

SEC. 108. ASSIGNMENT OF SHARES OF LIABILITY FOR COSTS OF RESPONSE 
              ACTIONS AT NATIONAL PRIORITY LIST SITES.

    Section 107(a) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)), is amended 
by inserting before the phrase ``The amounts recoverable'' the 
following: ``With respect to any National Priority List site, each 
liable party who accepts the results of the allocation of 
responsibility process under title V or who successfully appeals the 
results of such process shall be liable only for its assigned share of 
the costs incurred pursuant to subparagraphs (A), (B), and (D) of this 
section. The orphan share of a National Priority List site shall be 
paid out of the Hazardous Substance Superfund or the Retroactive 
Liability Fund, or any combination thereof, as determined by final 
binding allocation of liability.''.

SEC. 109. ENFORCEMENT OF RESPONSE ACTIONS THROUGH JOINT AND SEVERAL 
              LIABILITY.

    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: 
    ``(n) Joint and Several Liability of Parties Who Fail To Perform 
Response Actions.--In any case in which no liable party or potentially 
responsible party agrees to perform a response action at a National 
Priority List site, or a liable party or potentially responsible party 
agrees to perform a response action but the party fails to perform such 
response action, as determined by the Administrator or the State in 
which the site is located, the following provisions apply:
            ``(1) The party is considered to have not resolved its 
        liability to the United States, notwithstanding the party's 
        acceptance of the results of the binding allocation of 
        responsibility process under title V or the party's successful 
        appeal of the results of such process.
            ``(2) The party is subject to civil action under section 
        106, subparagraphs (A), (B), and (D) of subsection (a) of this 
        section, and section 113 for the response action and all costs 
        of the response action with respect to the National Priority 
        List site.
    ``(o) Payment of Certain Response Costs by Fund.--A potentially 
responsible party who performs and pays for a response action at a 
National Priority List site shall be reimbursed by the Hazardous 
Substance Superfund.
    ``(p) Authority To Collect Response Costs from Others.--A liable 
party who performs and pays for a response action at a National 
Priority List site is a creditor party under section 508 with respect 
to the site and may recover its response costs in accordance with that 
section.''.

SEC. 110. ESTABLISHMENT OF BINDING ALLOCATION OF RESPONSIBILITY 
              PROCESS.

    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 new title:

            ``TITLE V--BINDING ALLOCATION OF RESPONSIBILITY

``Sec. 501. General rules governing binding allocations of 
                            responsibility.
``Sec. 502. Qualifications and powers of administrative law judges and 
                            allocation panels.
``Sec. 503. Specific rules and procedures.
``Sec. 504. Duty to answer information requests and requests for 
                            production of documents.
``Sec. 505. Civil and criminal penalties.
``Sec. 506. Document repository; confidentiality; no waiver.
``Sec. 507. Final agency action and judicial review.
``Sec. 508. Collection, enforcement, and implementation.
``Sec. 509. Transition provisions.
``Sec. 510. Voluntary settlements.
``Sec. 511. New binding allocations of responsibility.

``SEC. 501. GENERAL RULES GOVERNING BINDING ALLOCATIONS OF 
              RESPONSIBILITY.

    ``(a) Allocation Panels.--The Administrator shall appoint panels of 
administrative law judges to perform expedited administrative 
proceedings, to be known as `binding allocations of responsibility', 
for purposes of determining the liability of potentially responsible 
parties at National Priority List sites. Each such panel shall be 
composed of three administrative law judges appointed by the 
Administrator under section 3105 of title 5, United States Code, and 
shall be known as an `allocation panel'.
    ``(b) Rules of Decision.--The decisions of allocation panels under 
this title shall be rendered based on the provisions of this Act and 
the court decisions interpreting such provisions.
    ``(c) Relationship to Natural Resources Damage.--Binding 
allocations of responsibility shall not address or affect the liability 
of any person with respect to damage to natural resources under section 
107(a)(1)(C).

``SEC. 502. QUALIFICATIONS AND POWERS OF ALLOCATION PANELS.

    ``(a) Qualifications.--An administrative law judge may not be 
appointed to an allocation panel under section 501 unless the judge 
completes at least 40 hours of education and training, as specified by 
the Administrator, in the following subject areas:
            ``(1) The operation of this Act and the regulations 
        promulgating this Act.
            ``(2) The science of soil and groundwater contamination and 
        the technology for treating such contamination.
    ``(b) General Powers.--An allocation panel shall have the power and 
authority to perform all functions necessary to administer and perform 
the binding allocations of responsibility, including the power to--
            ``(1) issue information requests and requests for 
        production of documents to any person;
            ``(2) require the Administrator and the State concerned to 
        provide all information relevant to a binding allocation of 
        responsibility, including the production of copies of all 
        documents and information obtained pursuant to section 104(e) 
        or pursuant to similar State law;
            ``(3) rule upon motions, requests, and offers of proof, 
        dispose of procedural requests, and issue all necessary orders;
            ``(4) administer oaths and affirmations and take 
        affidavits;
            ``(5) examine witnesses and receive documentary or other 
        evidence;
            ``(6) grant and manage such discovery by the parties as the 
        allocation panel deems appropriate and consistent with the 
        expedited nature of the binding allocation of responsibility 
        process;
            ``(7) admit or exclude evidence;
            ``(8) hear and decide questions of fact and law;
            ``(9) require the parties, including the State and the 
        guardian of the Fund, to attend conferences for the settlement 
        or simplification of the issues or the expedition of the 
        proceedings;
            ``(10) require, at any time, that potentially responsible 
        parties wishing to present similar legal or factual arguments 
        use a common spokesman or consolidated briefing for the 
        presentation of such facts and legal positions;
            ``(11) obtain or employ such support services as are 
        necessary to conduct the binding allocation of responsibility, 
        including secretarial and clerical services, investigative 
        services, and computer information and database management 
        services;
            ``(12) establish a document repository where all documents 
        associated with the binding allocation of responsibility shall 
        be maintained and made available to all parties to the binding 
        allocation of responsibility in accordance with section 506; 
        and
            ``(13) do all other acts and take all measures necessary 
        for the maintenance of order and for the efficient, fair, and 
        impartial adjudication of issues arising in the binding 
        allocation of responsibility.
    ``(c) Subpoena Power.--Allocation panels shall have the power of 
subpoena to collect information necessary or appropriate for conducting 
the binding allocation of responsibility or for otherwise implementing 
this section. This authority shall include the power to compel the 
attendance and testimony of witnesses and the production of reports, 
papers, documents, answers to questions, and other information that the 
allocation panel deems necessary. Witnesses shall be paid the same fees 
and mileage that are paid witnesses in the courts of the United States. 
In the event of contumacy or failure or refusal of any person to obey 
any such subpoena, any district court of the United States in which 
venue is proper shall have jurisdiction to order any such person to 
comply with such subpoena.
    ``(d) Informal Rules of Evidence.--In conducting the binding 
allocation of responsibility, an allocation panel shall not be bound by 
the Federal Rules of Evidence, but shall instead use such informal 
rules of evidence and evidentiary procedures, such as those set forth 
at sections 22.22 and 22.23 of title 40 of the Code of Federal 
Regulations, as will promote the expeditious completion of the 
proceeding.
    ``(e) Nationwide Service of Process.--Any document required to be 
served on a party under this title may be served in any district where 
the person is found, resides, transacts business, or has appointed an 
agent for service of process. Any such document is deemed to be served 
on a party if it is mailed to the counsel of record for the party or to 
the address designated by the party if the party is not represented by 
counsel.

``SEC. 503. SPECIFIC RULES AND PROCEDURES.

    ``(a) Initiation of Allocation Process.--
            ``(1) In general.--A binding allocation of responsibility 
        with respect to a National Priority List site shall be 
        initiated by filing a petition with the Office of the 
        Administrative Law Judges of the Environmental Protection 
        Agency. Such a petition may be filed by the Administrator or 
        the State where the National Priority List site is located.
            ``(2) When initiated.--The Administrator or a State shall 
        file a petition to initiate a binding allocation of 
        responsibility at a National Priority List site not later than 
        30 days after initiating the remedial investigation study (or 
        its equivalent) for the site. In any case where the petition is 
        filed more than 30 days after initiation of the remedial 
        investigation study (or its equivalent), all governmental 
        response costs incurred or contracted for prior to the filing 
        of the petition shall be allocated entirely to the orphan 
        share.
            ``(3) Contents of petition.--The petition to initiate the 
        binding allocation of responsibility proceeding shall identify 
        the petitioner and shall include all relevant information 
        reasonably available concerning--
                    ``(A) the identity, location, history, current 
                status, and environmental condition of the National 
                Priority List site;
                    ``(B) the identity and address of each person 
                believed by the petitioner to be a liable party and the 
                basis for such belief;
                    ``(C) any proposed questions and document requests 
                that the petitioner believes should be included in the 
                allocation panel's first information request and 
                document request; and
                    ``(D) a list of any legal or technical issues that 
                the petitioner believes may be raised in the binding 
                allocation of responsibility.
            ``(4) Service.--A copy of the petition shall be served by 
        mail, publication, or otherwise on the Administrator, the State 
        where the site is located, and each potentially responsible 
        party identified in the petition. Within 20 days after the 
        filing of the petition, the Hearing Clerk of the Office of 
        Administrative Law Judges shall cause a notice of the filing of 
        the petition, together with a brief description of the site and 
        a list of all potentially responsible parties identified in the 
        petition, to be published in the Federal Register. The 
        petitioner shall cause a similar notice, description, and list 
        to be published in a newspaper of general circulation within 
        the State where the site is located.
            ``(5) Prior investigation and search.--The Administrator or 
        the State, as the case may be, shall, prior to filing a 
        petition, conduct a thorough investigation and search, under 
        section 104(e) or any other relevant Federal or State statutory 
        or regulatory authority, for all potentially responsible 
        parties. All information, answers, and documents discovered in 
        such investigation or search and relevant to any aspect of the 
        binding allocation of responsibility shall, simultaneously with 
        the filing of the petition, be filed in the document repository 
        for the binding allocation of responsibility. If the allocation 
        panel determines that the Administrator or the State failed to 
        conduct a diligent search for potentially responsible parties 
        in accordance with this paragraph, and if another party 
        performs additional investigations and successfully identifies 
        additional potentially responsible parties, then the allocation 
        panel shall credit all of the reasonable costs of such 
        additional search against the assigned share, if any, of the 
        party that performed such additional investigation or search.
            ``(6) Appointment of guardian for the hazardous substance 
        superfund and the retroactive liability fund.--Any petition 
        filed by the Administrator shall include the name and address 
        of the person appointed to serve as the guardian for the 
        Hazardous Substance Superfund and the Retroactive Liability 
        Fund for that binding allocation of responsibility. In any case 
        where a petition is initiated by a State, the Administrator 
        shall notify the Hearing Clerk of the Office of the 
        Administrative Law Judges within 10 days after the petition is 
        filed of the name and address of the person designated by the 
        Administrator as the guardian for the Hazardous Substance 
        Superfund and the Retroactive Liability Fund. If the 
        Environmental Protection Agency is also a potentially 
        responsible party or a liable party with respect to the 
        National Priority List site concerned, then the agency may 
        participate in the binding allocation of responsibility with 
        regard to such liability, but the person designated as the 
        guardian shall not represent the agency with regard to the 
        agency's status as a potentially responsible party or liable 
        party.
    ``(b) Identification of Potentially Responsible Parties.--
            ``(1) Initial statement.--(A) Not later than 30 days after 
        receipt of a copy of a petition or after publication in the 
        Federal Register of a notice of the filing of an initial 
        petition (whichever is earlier) under subsection (a)(4), the 
        guardian, the State and any potentially responsible party may 
        file an initial statement setting forth--
                    ``(i) any defenses to liability;
                    ``(ii) any equitable considerations pertaining to 
                any party's potential liability;
                    ``(iii) any additional facts and issues relevant to 
                the binding allocation of responsibility;
                    ``(iv) any proposed questions or document requests 
                that the person filing the statement believes should be 
                included in the first information request issued by the 
                allocation panel; and
                    ``(v) the name and address of any additional person 
                or persons that the person filing the statement 
                believes may be a liable party at the National Priority 
                List site and all reasonably available information as 
                to the relationship between each proposed additional 
                party and the site.
            ``(B) Any initial statement shall be filed with the Hearing 
        Clerk and served on all parties named in the petition and named 
        in such initial statement.
            ``(2) Information requests and requests for production of 
        documents.--(A) Not later than 30 days after the filing of the 
        petition, the allocation panel shall mail initial information 
        requests and requests for production of documents to the 
        guardian, the State, all potentially responsible parties 
        identified in the petition, and all additional parties 
        identified in the initial statements. Responses to such 
        requests shall be made in accordance with this paragraph and 
        section 504.
            ``(B) Within 45 days after a person receives any 
        information request or request for production of documents, 
        such person shall file a response with the Hearing Clerk. For 
        good cause shown, the allocation panel may grant a single 45-
        day extension for the filing of any such response. Each party 
        shall have a continuing obligation to supplement its response 
        upon the receipt of additional relevant information.
            ``(3) Additional nominations of potentially responsible 
        parties.--The parties may identify and nominate additional 
        potentially responsible parties until the expiration of the 
        120-day period beginning on the date of filing of the petition. 
        Any nominations received by the Hearing Clerk after that period 
        may be disregarded by the allocation panel. Each nomination 
        shall include all reasonably available information supporting 
        the assertion that the nominee is a liable party and shall be 
        made at the earliest possible time. Any party making an 
        additional nomination shall serve notice of such nomination on 
        the nominated party and file a copy of such notice with the 
        Hearing Clerk. The nominated party may file its initial 
        response not later than 30 days after receipt of the notice. 
        The allocation panel may issue information requests and 
        requests for the production of documents to any nominated party 
        at any time.
            ``(4) Initial list of all potentially responsible 
        parties.--Within six months after the filing of the petition, 
        the allocation panel shall cause to be published in the Federal 
        Register and a newspaper of general circulation in the State 
        where the site is located a list identifying all parties that 
        the allocation panel preliminarily deems to be potentially 
        responsible parties with respect to the site. The allocation 
        panel also shall attempt to mail a copy of the list to all 
        parties to the binding allocation of responsibility. The 
        allocation panel shall reject the nomination of any person as a 
        liable party or potentially responsible party if it finds that 
        the nomination alleges no connection between the nominated 
        person and the site. The allocation panel may also identify, on 
        its own motion or the motion of a potentially responsible 
        party, additional potentially responsible parties at any time 
        before issuance of the final binding allocation of 
        responsibility.
    ``(c) De Micromis Parties.--(1) Not later than six months after the 
filing of the petition, the allocation panel shall issue a list 
identifying all potentially responsible parties that the allocation 
panel determines contributed only 100 pounds or 100 liters of material 
containing hazardous substances at the facility (or such greater or 
lesser amount as the Administrator may determine by regulation), to be 
known as `de micromis parties'. The allocation panel shall base the 
determination on an evaluation of all evidence received at the time of 
the issuance of the list with respect to the amount of hazardous 
substances contributed by potentially responsible parties.
    ``(2) The allocation panel shall notify each de micromis party of 
its inclusion on the list issued under paragraph (1) not later than 20 
days after issuing the list.
    ``(3) Any person included on the list of de micromis parties is 
exempt from liability to the United States and shall have no other 
liability (including liability for contribution), under Federal or 
State law, to any person for response actions or for any past, present, 
or future costs incurred at the site, provided that the person takes no 
other actions after being included on the list that would give rise to 
a separate basis for liability under this Act.
    ``(d) Identification of Liable Parties and Determination of 
Assigned Shares.--
            ``(1) First allocation advocacy paper.--Unless the 
        allocation panel determines that it would unduly delay the 
        process, the guardian, the State, and any potentially 
        responsible party may file an allocation advocacy paper with 
        the Hearing Clerk not later than 30 days after the publication 
        of the initial list of potentially responsible parties in the 
        Federal Register. Any such allocation advocacy paper, which 
        shall be served on the guardian, the State, and each 
        potentially responsible party, shall be a concise statement, 
        together with citations to relevant supporting evidence and 
        law, of the party's position with regard to--
                    ``(A) the legal and factual criteria that should be 
                used in determining whether a potentially responsible 
                party at the site is a liable party; and
                    ``(B) how the allocation factors set forth in 
                subsection (g)(2) should be applied to determine the 
                assigned share of each liable party.
            ``(2) First allocation report.--Within 90 days after the 
        publication of the initial list of potentially responsible 
        parties in the Federal Register, the allocation panel shall 
        issue its first allocation report tentatively specifying the 
        criteria to be used in identifying the liable parties, 
        tentatively specifying how the allocation factors will be 
        applied to the case to determine assigned shares, and setting 
        forth the process and schedule that will be used to allow 
        parties the opportunity to present written evidence and 
        argument regarding how such criteria and factors apply to the 
        case. The first allocation report shall be served on the 
        guardian, on the State, and on each potentially responsible 
        party.
            ``(3) Second allocation advocacy paper.--The guardian, the 
        State, and each potentially responsible party may file an 
        allocation advocacy paper with the Hearing Clerk not later than 
        60 days after receipt of the first allocation report. The 
        allocation advocacy paper, which shall be served on the 
        guardian, the State, and each potentially responsible party, 
        shall be the primary opportunity for the guardian, the State, 
        and each potentially responsible party to present evidence and 
        argument regarding how the liability criteria and the 
        allocation factors should be applied to such party and, if 
        desired by the person filing the paper, how those criteria and 
        factors should be applied to other potentially responsible 
        parties at the site.
            ``(4) Hearing.--Any potentially responsible party may 
        request a hearing on the determination that such party is a 
        liable party and on the determination of its assigned share. 
        The allocation panel may hold such a hearing if the allocation 
        panel determines that it would expedite or materially assist in 
        the resolution of disputed factual or legal issues. The 
        allocation panel shall have broad discretion in managing the 
        conduct of any such hearing, including limiting the time 
        available to each party and requiring that parties with 
        generally similar interests be represented by a single 
        spokesperson or common counsel. The allocation panel may allow 
        or prohibit the cross-examination of witnesses.
            ``(5) Rule of decision.--Any party may present written 
        evidence or argument on whether it, or any other potentially 
        responsible party, is a liable party and on the appropriate 
        assigned share for itself or any other potentially responsible 
        party. A potentially responsible party shall be deemed a liable 
        party if the allocation panel determines that the preponderance 
        of the evidence supports the conclusion that such party is 
        liable.
            ``(6) Second allocation report.--Following the submission 
        of advocacy papers and at the conclusion of any hearings, the 
        allocation panel shall issue a second allocation report 
        identifying all liable parties at the site and specifying the 
        assigned share of each liable party. If the second allocation 
        report changes or expands the list of potentially responsible 
        parties or the criteria or factors set forth in the first 
        allocation report, then the second report shall so specify and 
        provide a brief explanation of any such change. The second 
        allocation report shall be served on the guardian, the State, 
        all potentially responsible parties, and all liable parties.
    ``(e) Determination of Orphan Share.--
            ``(1) Orphan share advocacy paper.--Unless the allocation 
        panel determines that it would unduly delay the process, the 
        guardian, the State, and each liable party may file an orphan 
        share advocacy paper with the Hearing Clerk not later than the 
        30-day period beginning on the date of issuance of the second 
        allocation report. The orphan share advocacy paper shall be the 
        primary opportunity for the guardian, the State, and each 
        liable party to present written evidence and argument as to 
        which liable parties are orphan parties whose assigned share 
        should, in whole or in part, be assigned to the orphan share.
            ``(2) Orphan share report.--Following the expiration of the 
        30-day period referred to in paragraph (1), the allocation 
        panel shall issue an orphan share allocation report identifying 
        the orphan share. The orphan share report shall be served on 
        the guardian, the State, all potentially responsible parties, 
        and all liable parties.
    ``(f) Determination of Nonliable Parties.--(1) At any time during 
the period beginning six months after the filing of the petition and 
ending 18 months after the filing of the petition, the allocation panel 
shall issue a list identifying all potentially responsible parties that 
the allocation panel determines did not contribute any amount of 
hazardous substances to the National Priority List site. The allocation 
panel shall base the determination on an evaluation of all evidence 
received at the time of the issuance of the list with respect to the 
amount of hazardous substances contributed by potentially responsible 
parties.
    ``(2) The allocation panel shall notify each nonliable party of its 
inclusion on the list issued under paragraph (1) not later than 20 days 
after issuing the list.
    ``(3) Nonliable parties shall have no other liability, under 
Federal or State law, to any person for response actions or for any 
past, present, or future costs incurred at the site, provided that they 
take no other actions after making such settlement payment that would 
give risk to a separate basis for their liability under this Act.
    ``(g) Final Binding Allocation of Responsibility Decision.--
            ``(1) Decision.--(A) Not later than the deadline set forth 
        in subparagraph (B), the allocation panel shall issue a final 
        binding allocation of responsibility decision (in this 
        subsection referred to as the `final BAR decision') based on 
        the allocation factors listed in paragraph (2). The panel shall 
        include the Government's costs of carrying out the allocation 
        as part of the response costs to be included in the final BAR 
        decision. The decision shall include a list of all potentially 
        responsible parties, a list of all liable parties and the 
        assigned share for each (including all de minimis parties as 
        determined under paragraph (3)), a list of all orphan parties 
        and the portion of the assigned share of each orphan party that 
        is assigned to the orphan share, and the total orphan share 
        assigned to the Fund and to the Retroactive Liability Fund. 
        Where an orphan party is able to pay only a portion of its 
        assigned share, the allocation panel shall allocate to the 
        orphan share the portion of the assigned share that the party 
        is unable to pay and require the party to pay the remainder. 
        The final BAR decision shall provide a concise explanation of 
        the basis for the decision. The decision may consist, in whole 
        or in part, of a compilation of the first allocation report, 
        the second allocation report, and the orphan share report.
            ``(B) The final BAR decision shall be issued not later than 
        18 months after the date of publication under section 503(a)(4) 
        of notice that a petition for a binding allocation of 
        responsibility has been filed, except that, in a case of 
        exceptional complexity, the final decision shall be issued not 
        later than 24 months after such date.
            ``(2) Allocation factors.--An allocation panel shall 
        determine the assigned share of each liable party based on the 
        following factors:
                    ``(A) The degree to which the liable party's 
                contribution to a discharge, release, or disposal of a 
                hazardous substance can be distinguished.
                    ``(B) The amount of hazardous substances 
                contributed by the liable party at the site concerned, 
                compared to the total amount of hazardous substances at 
                that site.
                    ``(C) The degree of toxicity of the hazardous 
                substance contributed by the liable party.
                    ``(D) The degree of involvement by the liable party 
                in the generation, transportation, treatment, storage, 
                or disposal of the hazardous substance.
                    ``(E) The degree of care exercised by the liable 
                party with respect to the hazardous substance 
                concerned, taking into account the characteristics of 
                such hazardous substance.
                    ``(F) The degree of cooperation by the liable party 
                with Federal, State, or local officials to prevent any 
                harm to the public health or the environment.
                    ``(G) The weight of the evidence as to the 
                liability and the appropriate share of the liable 
                party.
                    ``(H) The ability to pay of the liable party.
                    ``(I) Any other equitable factors deemed 
                appropriate.
            ``(3) De minimis settlements.--(A) As part of the final BAR 
        decision, or at any time before the issuance of the final BAR 
        decision, the allocation panel shall issue a list identifying 
        all potentially responsible parties that the allocation panel 
        determines contributed only 1.0 percent or less of the total 
        quantity of hazardous substances present at the National 
        Priority List site, to be known as `de minimis parties'.
            ``(B) Not later than 60 days after issuance of the final 
        BAR decision or the issuance of the list of de minimis parties 
        under subparagraph (A), whichever is earlier, the Administrator 
        shall make a firm written offer of settlement to all de minimis 
        parties. The amount of the settlement offer for a de minimis 
        party shall be based on the Environmental Protection Agency's 
        estimate of the total cleanup cost at the site multiplied by 
        the de minimis party's allocated share as determined by the 
        allocation panel and increased by a reasonable premium 
        (expressed as a percentage) to reflect the benefit of an early 
        and complete resolution of liability, including consideration 
        of whether the remedy at the site will entail multiple phases 
        or operable units. All settlement offers by the Administrator 
        to de minimis parties at the same site shall be based on the 
        same estimate of cleanup costs and the same premium percentage. 
        The settlement offer under this subparagraph is not subject to 
        judicial review.
            ``(C) A de minimis party may accept or decline a settlement 
        offer, but any acceptance of the offer must be made within 60 
        days after receipt of the offer. A de minimis party that 
        accepts the offer may resolve its liability to the United 
        States by paying the amount of the offer to the Hazardous 
        Substance Superfund. Such settlement may not be reopened after 
        payment is made, except on grounds of fraud.
            ``(D) De minimis parties that accept the settlement offer 
        and pay the amount of the offer shall have no other liability, 
        under Federal or State law, to any person for response actions 
        or for any past, present, or future costs incurred at the site, 
        provided that they take no other actions after making such 
        settlement payment that would give risk to a separate basis for 
        their liability under this Act.
            ``(E) All proceeds from de minimis settlements under this 
        paragraph that represent the allocated shares of de minimis 
        parties at a site shall be paid by the Administrator directly 
        to the person performing the response action at the site. All 
        proceeds from de minimis settlements under this paragraph that 
        represent premiums paid by de minimis parties at the site shall 
        be earmarked in the Hazardous Substance Superfund to be used 
        specifically for costs of response action at the site. Any 
        amounts of such settlements remaining in the Fund after 
        completion of the response action shall be available in the 
        Superfund for general use.
            ``(4) Service and publication.--The binding allocation of 
        responsibility decision shall be served on the guardian, the 
        State, and all liable parties. The Hearing Clerk shall cause a 
        notice of the binding allocation of responsibility decision to 
        be published in the Federal Register and in a newspaper of 
        general publication in the State where the site is located.
            ``(5) Binding effect.--The binding allocation of 
        responsibility decision shall be binding as to all past, 
        present, or future liability (i) for response costs incurred 
        under section 107(a)(1)(A), (B), or (D), and (ii) for 
        contribution under section 113. The binding allocation of 
        responsibility decision shall be binding on all persons, 
        including, without limitation, the United States, any affected 
        State or local governmental agency or Indian Tribe, any alleged 
        or nominated potentially responsible party (regardless of 
        whether such party participates in the binding allocation of 
        responsibility), and the public.
            ``(6) Effect on other proceedings.--A determination that a 
        person is a liable party under a binding allocation of 
        responsibility proceeding is applicable only with respect to 
        liability being assigned in the proceeding and not with respect 
        to liability being determined in any other criminal, civil, or 
        administrative proceeding.

``SEC. 504. DUTY TO ANSWER INFORMATION REQUESTS AND REQUESTS FOR 
              PRODUCTION OF DOCUMENTS.

    ``(a) Duty to Answer.--Each person who receives any information 
request or request for production of documents from the allocation 
panel during a binding allocation of responsibility must provide full 
and timely responses to the request.
    ``(b) Certification of Documents.--Answers to information requests 
and requests for production of documents shall include a certification 
by a responsible representative who meets the criteria established in 
section 270.11(a) of title 40 of the Code of Federal Regulations that 
the answers--
            ``(1) are true and correct to the best of their knowledge;
            ``(2) are based on a diligent good faith search of records 
        in the possession or control of the person to whom the request 
        was directed;
            ``(3) are based on a reasonable inquiry of the current and 
        former officers, directors, employees, and agents of the person 
        to whom the request was directed;
            ``(4) accurately reflect information obtained in the course 
        of conducting such search and such inquiry;
            ``(5) that the person executing the certification 
        understands that there is a duty to supplement any such answers 
        if, during the binding allocation of responsibility, any 
        significant additional, new, or different information becomes 
        known or available to the answerer; and
            ``(6) that the person executing the certification 
        understands that there are significant penalties for submitting 
        false information, including the possibility of fine and 
        imprisonment for knowing violations.
    ``(c) Sanction.--In addition to any other penalty or sanction, any 
person who fails to answer an information request or request for 
production of documents, and who is determined to be a liable party, 
shall be assigned an assigned share of up to 500 percent of whatever 
its assigned share would otherwise have been, or up to 50 percent of 
the total liability at the site, whichever is greater. If this results 
in a binding allocation of responsibility that allocates more than 100 
percent of the total liability, then the excess shall be deposited into 
the Hazardous Substance Superfund.

``SEC. 505. CIVIL AND CRIMINAL PENALTIES.

    ``(a) Civil Penalties.--Any person who fails to submit a complete 
and timely answer to an allocation panel's information request or 
request for production of documents or other discovery request, or who 
submits a response that lacks the certification required under section 
504(b), or who makes any false or misleading material statement or 
representation in any submission to the allocation panel during the 
binding allocation of responsibility process, including statements or 
representations in connection with the nomination of another 
potentially responsible party, shall be subject to civil penalties of 
up to $10,000 per day of violation. The violation shall be deemed a 
continuing one until such time as the request is answered or the 
necessary certification is submitted or the false or misleading 
statement or representation is corrected. Such penalties may be 
assessed by the President in accordance with section 109 or by any 
other party in a citizen suit brought under section 310. A prevailing 
plaintiff in such a citizen suit shall be awarded its attorneys fees 
and up to 50 percent of the penalty imposed by the court.
    ``(b) Criminal Penalties.--Any person who knowingly makes any false 
material statement or representation in the response to an allocation 
panel's information request or request for the production of documents 
or other discovery request, or in any other submission to the 
allocation panel during the binding allocation of responsibility, 
including statements or representations in connection with the 
nomination of another potentially responsible party, may be fined under 
title 18, United States Code, imprisoned for not more than 2 years, or 
both.

``SEC. 506. DOCUMENT REPOSITORY; CONFIDENTIALITY; NO WAIVER.

    ``(a) Document Repository.--The allocation panel shall establish 
and maintain a document repository where copies of all petitions, 
initial statements, advocacy papers, reports, answers to information 
requests and requests for production of documents by the allocation 
panel, answers to Federal or State information requests or requests for 
the production of documents issued prior to the filing of the petition, 
produced documents, and all other similar material shall be maintained 
and organized. The documents and information in the document repository 
shall be available only to the parties to the binding allocation of 
responsibility for review and copying at their own expense, subject 
only to the confidentiality provisions of subsection (b). All responses 
to any information request or request for production of documents by 
the allocation panel shall be filed with the clerk for the document 
repository and need not be served on other potentially responsible 
parties, the State, or the guardian.
    ``(b) Confidentiality.--(1) All pleadings, documents, and materials 
submitted to the allocation panel or placed in the document repository, 
together with the record of any depositions or testimony adduced during 
the binding allocation of responsibility, shall be confidential and 
shall not be subject to release under section 552 of title 5, United 
States Code (the Freedom of Information Act). The Hearing Clerk and 
each party to the binding allocation of responsibility proceeding shall 
maintain such pleadings, documents, and materials, together with the 
record of any depositions or testimony adduced during the binding 
allocation of responsibility, as confidential. Such material shall not 
be discoverable or admissible in any other Federal, State or local 
judicial, administrative, or legislative proceeding of any kind 
whatsoever, except--
            ``(A) to the extent necessary to collect or otherwise 
        enforce in court the assigned share of a liable party as 
        determined by the binding allocation of responsibility;
            ``(B) in a proceeding for judicial review of the binding 
        allocation of responsibility;
            ``(C) in any new binding allocation of responsibility 
        proceeding concerning the same site; and
            ``(D) in any binding allocation of responsibility involving 
        a different site where the allocation panel determines that the 
        sites are related and that specified documents from the first 
        binding allocation of responsibility could materially assist 
        the second binding allocation of responsibility.
    ``(2) Notwithstanding paragraph (1)(D), if the original of any 
document or material submitted to the allocation panel or placed in the 
document repository during the binding allocation of responsibility 
was, while in the possession of the party which provided it, otherwise 
discoverable or admissible, then such original document, if 
subsequently sought from such party, shall remain discoverable or 
admissible. If a fact covered in any deposition or testimony adduced 
during the binding allocation of responsibility was, in the knowledge 
of the witness or deponent, otherwise discoverable or admissible, then 
such testimony, if subsequently sought from such other party, shall 
remain discoverable or admissible.
    ``(c) No Waiver of Privilege.--The submission of documents or 
information pursuant to the binding allocation of responsibility 
proceeding shall not be deemed to be a waiver of any privilege, 
applicable to the original document or fact, under any Federal or State 
law, regulation, or rule of discovery or evidence .
    ``(d) Discovery.--In any case where a party to a binding allocation 
of responsibility receives any request for any pleading, document, or 
material, or for the record of any depositions or testimony adduced in 
a binding allocation of responsibility, such party shall promptly 
notify the person who originally submitted such item and shall provide 
such submitting person the opportunity to assert and defend the 
confidentiality of such item. No party to the binding allocation of 
responsibility shall release or provide a copy of any pleading, 
document, or material, or the record of any depositions or testimony 
adduced therein, to any person not a party to such binding allocation 
of responsibility, except in compliance with an order from a court.
    ``(e) Civil Penalty for Violation of Confidentiality 
Requirements.--Any person who fails to maintain the confidentiality of 
any pleadings, documents, or materials, or the record of any deposition 
or testimony adduced during the binding allocation of responsibility, 
or who releases any such information in violation of this section, 
shall be subject to a civil penalty of up to $25,000 per violation. 
Such a penalty may be assessed by the President in accordance with 
section 109 or by any other party in a citizen suit brought under 
section 310. A prevailing plaintiff in such a citizen suit shall be 
awarded its attorneys fees and up to 50 percent of the penalty imposed 
by the court.

``SEC. 507. FINAL AGENCY ACTION AND JUDICIAL REVIEW.

    ``(a) Final Agency Action.--The binding allocation of 
responsibility decision of the allocation panel shall constitute final 
agency action pursuant to section 706 of title 5, United States Code, 
subject only to review by the Administrator in situations of fraud or 
gross misconduct.
    ``(b) Judicial Review.--
            ``(1) In general.--No Federal or State court shall have 
        jurisdiction to review, modify, or enjoin any aspect of any 
        binding allocation of responsibility proceeding except as 
        expressly set forth in this subsection. No aspect of any 
        action, decision, ruling, or determination by an allocation 
        panel in any binding allocation of responsibility proceeding 
        shall be subject to administrative or judicial review in any 
        Federal or State court until after the final binding allocation 
        of responsibility decision (in this subsection referred to as 
        the `final BAR decision') is issued by the allocation panel. 
        Thereafter the Administrator, the guardian, the State, or any 
        person determined by the allocation panel to be a liable party 
        may obtain judicial review of a final BAR decision by filing a 
        petition for review with the United States Court of Appeals for 
        the Circuit in which the facility is located or for the 
        District of Columbia.
            ``(2) Petition.--Any such petition for review must be filed 
        within 60 days after the date of the final BAR decision by the 
        allocation panel. The petition shall set forth either the 
        specific assigned share of liability that the petitioner 
        believes should have been assigned to it (or, in the case of a 
        petition filed by the guardian, the assigned share that the 
        guardian believes should have been assigned to the orphan 
        share) in the binding allocation of responsibility, or stating 
        specifically that the petitioner believes it should not have 
        been found to have any liability at all.
            ``(3) Review.--Judicial review of the final BAR decision 
        shall be conducted on the administrative record, which shall 
        include all materials relating to the issues raised on appeal 
        by the petitioner that are contained in the document repository 
        described in section 506(a). The court shall set aside the 
        binding allocation of responsibility only if it is found to be 
        arbitrary, capricious, an abuse of discretion, or contrary to 
        constitutional right, power, privilege, or immunity.
            ``(4) Payment during pendency of review.--During the 
        pendency of a petition for review under this section, the 
        petitioner shall pay any demand notices rendered for its 
        assigned share in accordance with the binding allocation of 
        responsibility decision, subject to later refund if the 
        petitioner prevails in the litigation.
            ``(5) Conduct of response action during pendency of 
        review.--During the pendency of a petition for review under 
        this section, response action with respect to the site may 
        occur, but only as provided in section 121(b)(7).
            ``(6) Liability of successful petitioner.--If the 
        petitioner is a liable party and the court adopts the assigned 
        share proposed by the petitioner, then the difference between 
        that share and the share originally assigned to the petitioner 
        shall be added to the orphan share. If the petitioner is the 
        guardian and the court adopts the orphan share proposed by the 
        petitioner, then the matter shall be remanded to the allocation 
        panel for the issuance, as soon as possible, of a revised 
        binding allocation of responsibility decision in accordance 
        with the decision of the court.
            ``(7) Liability of unsuccessful petitioner.--(A) In the 
        case of a petitioner who is a liable party petitioning for a 
        change in the petitioner's assigned share, and the court does 
        not adopt the assigned share proposed by the petitioner, the 
        following provisions apply:
                    ``(i) The petitioner shall reimburse all other 
                parties that participated in the appeal for the actual 
                attorneys' fees and costs that they incurred in 
                defending the binding allocation of responsibility 
                decision.
                    ``(ii) The petitioner may participate in the 
                settlement based on its assigned share if the 
                petitioner notifies the court of such intention within 
                10 days after the court's decision on the petition.
                    ``(iii) If the petitioner does not give notice as 
                described in clause (ii), the petitioner is considered 
                to have not resolved its liability to the United States 
                and is subject to civil action under section 106, 
                107(a), and 113 for the following response costs with 
                respect to the National Priority List site concerned:
                            ``(I) The assigned share of the petitioner, 
                        as determined in the final BAR decision, plus
                            ``(II) the orphan share for that site.
                    ``(iv) A petitioner covered by clause (ii) is 
                subject to claims for contribution from, and may make 
                claims for contribution against, other unsuccessful 
                petitioners with respect to the National Priority List 
                site concerned.
            ``(B) In the case of a petitioner who is a liable party 
        petitioning for a determination that the petitioner is not 
        liable with respect to the site concerned (for reasons such as 
        the fact that the petitioner is a successor to, or a parent or 
        subsidiary of, a company which the petitioner believes should 
        be assigned liability instead), and the court denies the 
        petition, the petitioner is liable for its assigned share as 
        determined in the final BAR decision.

``SEC. 508. COLLECTION, ENFORCEMENT, AND IMPLEMENTATION.

    ``(a) Collection.--
            ``(1) Amount recoverable.--After a final binding allocation 
        of responsibility decision is made with respect to a National 
        Priority List site, any creditor party may, in accordance with 
        paragraph (2), recover from any debtor party the following:
                    ``(A) With respect to a debtor party who is a 
                liable party, that party's assigned share, as 
                determined under the binding allocation of 
                responsibility.
                    ``(B) With respect to a debtor party which is the 
                Hazardous Substance Superfund or the Retroactive 
                Liability Fund, the orphan share, as determined under 
                the binding allocation of responsibility.
                    ``(C) With respect to a debtor party who is either 
                a liable party or the Hazardous Substance Superfund or 
                the Retroactive Liability Fund, any attorneys' fees 
                incurred by the creditor party in a judicial action 
                seeking to recover costs from the debtor party.
            ``(2) Procedures for recovery.--Recovery by a creditor 
        party from a debtor party shall be carried out in accordance 
        with the following provisions:
                    ``(A) The creditor party shall file a certified 
                copy of the final decision of the binding allocation of 
                responsibility in the United States District Court for 
                the district in which the site is located.
                    ``(B) The creditor party shall file a verified 
                statement with the same court specifying the actions 
                taken and the costs incurred by the creditor party, and 
                stating that such actions and costs are not 
                inconsistent with the National Contingency Plan.
                    ``(C) The creditor party shall serve a demand 
                notice to each debtor party against whom enforcement is 
                sought and shall deliver a copy of each such notice to 
                the Administrator and the State in which the site is 
                located. The demand notice shall specify the total 
                amount of costs covered by the notice, state a demand 
                amount (consisting of the debtor party's assigned share 
                or, with regard to the Fund, the orphan share), and 
                demand that the debtor party pay such demand amount 
                within 30 days after receipt of the notice. Any demand 
                notice served by a creditor party shall provide that a 
                debtor party may pay the demand amount over a period of 
                time in installment payments. A copy of the demand 
                notice shall be filed with the United States District 
                Court for the district in which the site is located.
                    ``(D) With respect to any response actions or 
                expenditures of a continuing nature, verified 
                statements and demand notices shall be filed with the 
                court and delivered to the debtor parties and the 
                guardian quarterly.
                    ``(E) Where several liable parties, or a liable 
                party and the Administrator or the State, each take 
                actions or incur costs not inconsistent with the 
                National Contingency Plan, different demand notices may 
                be issued concurrently.
    ``(b) Penalties and Damages.--Except in the case of a challenge to 
collection duly filed in accordance with subsection (c), if a liable 
party, including any Federal, State, or local governmental agency, 
fails to pay the sum specified in a demand notice within 30 days after 
receipt of the notice (or, in the case of a debtor party paying by 
installments, within 30 days after an installment payment is due), such 
party shall be liable for the interest thereon, civil penalties of up 
to $10,000 per day, and damages of up to an amount equal to 3 times the 
sum specified in the demand notice. In the case of the orphan share, if 
the Hazardous Substance Superfund or the Retroactive Liability Fund 
fails to pay the sum specified in a demand notice within 30 days after 
receipt of the notice, the Fund or the Retroactive Liability Fund shall 
be liable for interest thereon and damages of up to the amount equal to 
2 times the sum specified in the demand notice.
    ``(c) Challenges to Enforcement.--There shall be no administrative 
or judicial review of any aspect of a demand notice filed and delivered 
pursuant to subsection (a) except in accordance with this subsection. 
Within 30 days after receipt of a demand notice, a liable party or, in 
the case of the orphan share, the guardian may file a petition with the 
allocation panel that issued the binding allocation of responsibility 
decision contending that the costs reflected in the demand notice were 
incurred for actions inconsistent with the National Contingency Plan. 
If such a petition is filed, the allocation panel shall conduct an 
expedited review of the matter. The review shall be limited solely to 
the issue of the alleged inconsistency of the response actions and 
costs with the National Contingency Plan. The person challenging the 
demand notice shall have the burden of proof that such actions and the 
claimed costs are inconsistent with the National Contingency Plan. The 
allocation panel's decision shall not be subject to judicial review. 
Payment need not be made, and no interest shall accrue, pending the 
allocation panel's decision.
    ``(d) Subsequent Additions to Orphan Share.--If good faith 
collection and enforcement efforts, whether by the Federal or State 
government or by any other creditor party, against a liable party 
results in a judicial or administrative determination that such liable 
party is an orphan party, then such liable party's share will be added 
to the orphan share amount and will be recoverable from the Hazardous 
Substance Superfund.
    ``(e) Contribution Protection.--Liable parties that pay their 
assigned share and comply with the binding allocation of responsibility 
decision shall have no other liability, under Federal or State law, to 
any person for costs incurred at the site, and shall be granted 
covenants not to sue by the Federal Government and the State government 
concerned, except that the binding allocation of responsibility 
decision shall not affect any contract for insurance or 
indemnification.

``SEC. 509. TRANSITION PROVISIONS.

    ``(a) In General.--Except as provided in subsection (b), no person 
may initiate any administrative or judicial action under section 106, 
subparagraph (A), (B), or (D) of section 107(a)(1), or section 113, or 
under any other Federal or State law or regulation, for the recovery of 
response costs, contribution, or performance of response actions 
regarding any National Priority List site until 90 days after a final 
binding allocation of responsibility is issued.
    ``(b) Exceptions.--Subsection (a) is subject to only the following 
exceptions:
            ``(1) Administrative orders for emergency removal 
        actions.--The President may issue an order under section 106, 
        prior to the issuance of a final binding allocation of 
        responsibility, if the order is limited to those actions 
        required to implement immediate risk reduction measures pending 
        the issuance of the final binding allocation of responsibility 
        decision.
            ``(2) Continuation of pending response actions.--In any 
        case where, as of the date of enactment of this title, the 
        Administrator or a State has already issued a binding contract 
        for the performance of a remedial investigation/feasibility 
        study or has issued an administrative order or executed a 
        consent decree for the performance of any response action, the 
        binding allocation of responsibility process shall not affect 
        the timing or manner of implementation of such response 
        actions.
    ``(c) Stay of Existing Actions.--
            ``(1) Stay of pending enforcement actions.--In any case 
        where, as of the date of enactment of this title, the 
        Administrator or the State has already initiated any 
        administrative or judicial enforcement action regarding the 
        liability of any party under section 106, subparagraph (A), 
        (B), or (D) of section 107(a)(1), or section 113, or under any 
        other Federal or State law or regulation for the response 
        costs, contribution, or performance of response actions, such 
        action shall be automatically stayed until 90 days after a 
        binding allocation of responsibility is issued, any judicial 
        review of such allocation is completed, and a final 
        administrative or judicial allocation decision is rendered.
            ``(2) Stay of pending private party litigation.--In any 
        case where, as of the date of enactment of this title, any 
        private person has initiated any administrative or judicial 
        action regarding the liability of any party at a National 
        Priority List site under section 106, subparagraph (A), (B), or 
        (D) of section 107(a)(1), or section 113, or under any other 
        Federal or State law or regulation for the response costs, 
        contribution, or performance of response actions, such action 
        shall be automatically stayed until 90 days after a binding 
        allocation of responsibility is issued, any judicial review of 
        such allocation is completed, and a final administrative or 
        judicial allocation decision is rendered.
    ``(d) Credit for Actions and Costs in Pending Matters.--In the case 
of any response action performed or cost incurred in any activity 
carried out pursuant to subsection (b), the liability for such response 
action shall be governed by, and the costs of implementing any such 
response action or other activity carried out pursuant to subsection 
(b), shall be included in, the subsequently issued binding allocation 
of responsibility for such National Priority List site. In conducting 
the binding allocation of responsibility, the allocation panel shall, 
to the extent reasonably possible, give credit for any prior costs 
incurred or response actions performed at the National Priority List 
site.
    ``(e) Limitations on Existing Actions.--(1) The time period 
described in paragraph (2) shall not be counted in determining the 
statute of limitations applicable to any administrative or judicial 
action under section 106, subparagraph (A), (B), or (D) of section 
107(a)(1), or section 113, or under any other Federal or State law or 
regulation, for the recovery of costs, for contribution, or for the 
investigation, cleanup, or remediation of any National Priority List 
site.
    ``(2) The time period referred to in paragraph (1) is the period 
beginning on the date that any person first files a petition for the 
initiation of a binding allocation of responsibility for that site and 
ending on the date that a binding allocation of responsibility is 
issued.

``SEC. 510. VOLUNTARY SETTLEMENTS.

    ``Prior to the issuance of a binding allocation of responsibility 
decision, any group of potentially responsible parties may submit a 
private allocation for the National Priority List site (to be known as 
a `voluntary binding allocation of responsibility') to the allocation 
panel. If such voluntary binding allocation of responsibility meets the 
following criteria, the allocation panel shall promptly adopt it as the 
binding allocation of responsibility:
            ``(1) The voluntary binding allocation of responsibility 
        shall be a binding allocation of 100 percent of past, present, 
        and future recoverable response costs at the site.
            ``(2) The voluntary binding allocation of responsibility 
        shall not allocate any costs or requirements--
                    ``(A) to the orphan share, unless the guardian 
                agrees, in writing, to such allocation; or
                    ``(B) to any person who is not a signatory to the 
                voluntary binding allocation of responsibility.
            ``(3) Signatories to the voluntary binding allocation of 
        responsibility shall be entitled to contribution protection as 
        specified in section 508(e). Such signatories shall be 
        prohibited from pursuing any cost recovery action or 
        contribution against any non-signatory, but may seek additional 
        recovery against non-signatories based on a contract for 
        insurance or indemnification.
            ``(4) Signatories to the voluntary binding allocation of 
        responsibility shall be entitled to enforce it in the same 
        manner as any binding allocation of responsibility final 
        decision by the allocation panel.

``SEC. 511. NEW BINDING ALLOCATIONS OF RESPONSIBILITY.

    ``A binding allocation of responsibility shall constitute a 
permanent determination of the assigned share of each liable party and 
of the orphan share and, except for additions to the orphan share 
pursuant to section 508(d) and judicially mandated changes pursuant to 
section 507(b), the binding allocation of responsibility shall not be 
subject to any change or revision for at least 5 years after the date 
of the binding allocation of responsibility final decision. Thereafter 
a new binding allocation of responsibility process shall be available 
only if the party requesting it demonstrates that, due to new 
information not reasonably available during first binding allocation of 
responsibility, a 35 percent or greater increase in total waste-in 
volume has been discovered. If such a request for a new binding 
allocation of responsibility is granted, the same rules and procedures 
described for initial binding allocations of responsibility apply to 
the new or revised binding allocation of responsibility. New binding 
allocations of responsibility shall only apply to funds actually 
expended after the effective date of the new binding allocation of 
responsibility decision, with no credits for funds already expended. 
Subsequent new binding allocations of responsibility requests are 
prohibited until 5 years after the date of issuance of the prior new 
binding allocation of responsibility.''.

SEC. 111. SITE REDEVELOPMENT.

    Section 107 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607) is amended by 
adding the following at the end thereof:
    ``(n) Site Redevelopment.--
            ``(1) Exemption.--No person who is a qualified redeveloper 
        shall be liable under this title for costs or damages with 
        respect to the release of any hazardous substance or the threat 
        of any such release from any facility solely by reason of an 
        agreement by such person to redevelop such facility after a 
        response action has been completed (as determined by the 
        President) at such facility.
            ``(2) Qualified redeveloper.--For purposes of this 
        subsection, the term `qualified redeveloper' means a person who 
        is not otherwise liable under section 107 and did not cause or 
        contribute to the release or threat of release which 
        necessitated the response action referred to in paragraph 
        (1).''.

SEC. 112. LIABILITY OF RESPONSE ACTION CONTRACTORS.

    (a) Extension of Negligence Standard.--Subsection (a) of section 
119 of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 is amended--
            (1) in paragraph (1) by striking out ``title or under any 
        other Federal law'' and inserting in lieu thereof ``title, 
        under any other Federal law, or under the law of any State or 
        political subdivision of a State''; and
            (2) by adding at the end of paragraph (2) the following: 
        ``Such conduct shall be evaluated based on the generally 
        accepted standards and practices in effect at the time and 
        place that the conduct occurred.''.
    (b) Extension of Indemnification Authority.--Section 119(c) of such 
Act is amended by adding at the end of paragraph (1) the following: 
``Any such agreement may apply to claims for negligence arising under 
Federal, State, or common law.''.
    (c) Extension of Coverage.--Section 119(e) of such Act is amended 
in the text appearing after subparagraph (D)--
            (1) by striking out ``List, or any removal under this 
        Act,'' and inserting in lieu thereof ``List, any removal under 
        this Act, or any response action under this Act at a facility 
        using an alternative or innovative technology,''; and
            (2) by inserting before the period the following: ``, or to 
        undertake appropriate natural resource restoration actions 
        necessary to protect and restore any natural resources damaged 
        by such release or threatened release of a hazardous substance 
        or pollutant or contaminant''.
    (d) Indemnification for Threatened Releases.--Section 119(c)(5) of 
such Act is amended in subparagraph (A) by inserting ``or threatened 
release'' after ``release'' both places it appears.
    (e) Clarification of Liability.--Section 101 of such Act, as 
amended by section 106, is further amended by adding at the end of 
paragraph (20) the following:
            ``(F) The term `owner or operator' does not include any 
        person carrying out a written contract or agreement with any 
        Federal agency, any State (or any political subdivision of a 
        State), or any responsible party to provide any response action 
        or any form of services or equipment ancillary to such response 
        action. Any such person shall not be considered to have caused 
        or contributed to any release or threatened release of, or to 
        have arranged for disposal or treatment of, or arranged with a 
        transporter for transport for disposal or treatment of, or 
        transported, hazardous substances or pollutants or 
        contaminants. This subparagraph shall not apply to any person 
        potentially responsible under section 106 or 107 other than 
        those persons associated solely with the provision of response 
        action or any form of ancillary services or equipment.''.
    (f) Federal Statute of Repose.--Section 119 of such Act is further 
amended by adding at the end the following new subsection:
    ``(g) Limitation on Actions Against Response Action Contractors.--
No action to recover for any injury to property, real or personal, or 
for bodily injury or wrongful death, or any other expenses or costs 
arising out of the performance of services under a response action 
contract, nor any action for contribution or indemnity for damages 
sustained as a result of such injury, shall be brought against any 
response action contractor more than 6 years after the completion of 
work at any site under such contract. The limitation prescribed in this 
subsection shall not affect any right of indemnification that such 
response action contractor may have under this section or may acquire 
by written agreement with any party.''.

                     TITLE II--STATE IMPLEMENTATION

SEC. 201. STATE AUTHORITY.

    (a) State Authorization.--Title I of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9600 et seq.) is amended by adding after section 126 the 
following new section:
``Sec. 127. State authority
    ``(a) State Program Authorization.--
            ``(1) In general.--At any time after the promulgation of 
        regulations required by paragraph (2), a State may apply to the 
        Administrator to carry out, under its own legal authorities, 
        response actions and enforcement activities at all facilities 
        listed or proposed for listing on the National Priorities List, 
        or certain categories of facilities listed or proposed for 
        listing on the National Priorities List, within the State. If 
        the Administrator determines that the State meets the criteria 
        for eligibility, the Administrator, pursuant to a contract or 
        agreement entered into between the Administrator and the State, 
        shall authorize the State to assume the responsibilities 
        established under this Act at all such facilities or categories 
        of facilities. Except as otherwise provided in this Act, such 
        responsibilities include, but are not limited to, responding to 
        a release or threatened release of a hazardous substance or 
        pollutant or contaminant; selecting response actions; expending 
        the Fund and the Retroactive Liability Fund in amounts 
        authorized by the Administrator to finance response activities; 
        and taking enforcement actions, including cost recovery actions 
        to recover Fund and the Retroactive Liability Fund expenditures 
        made by the State. In an application for authorization, a State 
        shall acknowledge its responsibility to address all response 
        actions at the facilities for which it seeks authorization.
            ``(2) Promulgation of regulations.--Not later than 1 year 
        after the date of the enactment of the Comprehensive Superfund 
        Improvement Act, the Administrator shall issue regulations to 
        determine a State's eligibility for authorization and to 
        establish a process and criteria for withdrawal of such an 
        authorization. A State shall be considered eligible for 
        authorization if the Administrator determines that the State 
        possesses the legal authority, technical capability, and 
        resources necessary to conduct response actions and enforcement 
        activities in a manner that is substantially consistent with 
        this Act and the National Contingency Plan at the facilities 
        listed or proposed for listing on the National Priorities List 
        for which it seeks authorization.
    ``(b) Authorized Use of Funds.--At facilities listed on the 
National Priorities List for which a State is authorized under 
subsection (a), and at facilities listed on the National Priorities 
List which are referred to a State under subsection (b), the State 
shall be eligible for response action financing from the Fund and the 
Retroactive Liability Fund. The Administrator shall ensure that all 
allocations of the Fund and the Retroactive Liability Fund to the 
States for the purpose of undertaking site-specific response actions 
are based primarily on the relative risks to human health and the 
environment posed by the facilities eligible for funding. The amount of 
Fund and Retroactive Liability Fund financing for a State-selected 
response action at a facility listed on the National Priorities List 
shall--
            ``(1) take into account the number and financial viability 
        of parties identified as potentially liable for response costs 
        at such facility, and
            ``(2) be limited to the amount necessary to achieve a level 
        of response that is not more stringent than that required under 
        this Act.
A State also may obtain Fund financing to develop and enhance its 
capacity to undertake response actions and enforcement activities. The 
Administrator, in consultation with the States, shall establish, within 
1 year after the date of enactment of the Comprehensive Superfund 
Improvement Act, specific criteria for allocating expenditures from the 
Fund and the Retroactive Liability Fund among States for the purposes 
of undertaking response actions and enforcement activities at referred 
and State-authorized facilities, and building State capacities to 
undertake such response actions and enforcement activities.
    ``(c) State Cost Share.--Notwithstanding section 104(c)(3)(C) of 
this Act, a State shall pay or assure payment of 10 percent of the 
costs of all response actions (including response actions at facilities 
operated by the State or a political subdivision of the State) for 
which the State receives funds from the Fund under this section. A 
State that receives funds from the Retroactive Liability Fund under 
this section shall not be subject to any cost share requirements for 
the receipt of those funds.
    ``(d) Terms and Conditions; Cost Recovery.--A contract or agreement 
for a State authorization or referral under this section is subject to 
such terms and conditions as the Administrator prescribes. The terms 
and conditions shall include requirements for periodic auditing and 
reporting of State expenditures from the Fund and the Retroactive 
Liability Fund. The contract or agreement may cover a specific 
facility, a category of facilities, or all facilities listed or 
proposed to be listed on the National Priorities List in the State. The 
contract or agreement shall require the State to seek cost recovery, as 
contemplated by this Act, of all expenditures from the Fund. Ten 
percent of the moneys recovered by the State may be retained by the 
State for use in its hazardous substance response program, and the 
remainder shall be returned to the Fund. Before making further 
allocations from the Fund to any State, the Administrator shall take 
into consideration the effectiveness of the State's enforcement program 
and cost recovery efforts.
    ``(e) Enforcement of Agreements.--If the Administrator enters into 
a contract or agreement with a State pursuant to this section, and the 
State fails to comply with any terms and conditions of the contract or 
agreement, the Administrator, after providing 60 days notice, may 
withdraw the State authorization or referral, or seek in the 
appropriate Federal district court to enforce the contract or agreement 
to recover any funds advanced or any costs incurred because of the 
breach of the contract or agreement by the State.
    ``(f) More Stringent State Standards.--Under either an 
authorization or referral, a State may select a response action that 
achieves a level of cleanup that is more stringent than required under 
section 121 of this Act if the State agrees to pay for the incremental 
increase in response cost attributable to achieving the more stringent 
cleanup level. Neither the Fund, the Retroactive Liability Fund, nor 
any party liable for response costs shall incur costs in excess of 
those necessary to achieve a level of cleanup required under section 
121 of this Act.
    ``(g) Opportunity for Public Comment.--The Administrator shall make 
available, for public review and comment, applications for 
authorization under subsection (a) and applications for referral under 
subsection (b). The Administrator shall not approve or withdraw 
authorization or referral from a State unless the Administrator 
notifies the State, and makes public, in writing, the reasons for such 
approval or withdrawal.
    ``(h) Periodic Review of Authorized State Programs and Referrals.--
The Administrator shall conduct a periodic review of authorized State 
programs and referrals to determine, among other things, whether--
            ``(1) the response actions were selected and conducted in a 
        manner that was substantially consistent with this Act, the 
        National Contingency Plan, and the contract or agreement 
        between the Administrator and the State;
            ``(2) the State response costs financed by Fund and 
        Retroactive Liability Fund expenditures were incurred in the 
        manner agreed to by the State, in accordance with the contract 
        or agreement between the Administrator and the State; and
            ``(3) the State's cost recovery efforts and other 
        enforcement efforts were conducted in accordance with the 
        contract or agreement between the Administrator and the State.
Within 1 year after the date of enactment of the Comprehensive 
Superfund Improvement Act, the Administrator, in consultation with the 
States, shall develop specific criteria for periodic reviews of 
authorized State programs and referrals. The Administrator shall 
establish a mechanism to make the periodic State reviews available to 
the public.''.
    (b) Transition and Conforming Amendments.--
            (1) Sections 104(c)(5), 104(c)(7), 104(d)(1), and 104(d)(2) 
        of the Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 are each amended by inserting after the 
        heading in each paragraph the following--``This paragraph 
        applies only to response actions for which a Record of Decision 
        or other decision document is signed before the date of 
        enactment of the Comprehensive Superfund Improvement Act.''.
            (2) Section 114(a) of such Act is amended by striking 
        ``Nothing'' and inserting--``Except as otherwise provided in 
        this Act, nothing'';
            (3) Paragraph (1) of section 121(f) of such Act is amended 
        to read as follows: ``(1) The President may repeal, no earlier 
        than one year after the promulgation of final regulations under 
        sections 127(a)(3) and 127(b)(3), the regulations issued under 
        this paragraph prior to the date of enactment of the 
        Comprehensive Superfund Improvement Act.'';
            (4) Paragraphs (2) and (3) of section 121(f) of such Act 
        are each amended in the second sentence of subparagraph (A) by 
        striking ``does not attain a legally applicable or relevant and 
        appropriate standard, requirement, criteria, or limitation, 
        under the authority of subsection(d)(4)'' and inserting in lieu 
        thereof ``is not relevant and appropriate under 
        subsection(d),''.
            (5) Section 302(d) of such Act is amended by striking 
        ``Nothing'' and inserting--``Except as otherwise provided in 
        this Act, nothing''.

SEC. 202. TRANSFER OF AUTHORITIES.

    Section 120(g) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(g)) is amended 
by inserting after ``the Environmental Protection Agency,'' the 
following: ``and except as provided in section 127,''.

SEC. 203. EPA OVERSIGHT COSTS.

    (a) Oversight Cost Accounting and Appeal Procedure.--Section 104(a) 
of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9604(a)) is amended by adding at the 
end the following new paragraph:
    ``(5) Oversight Cost Accounting and Appeal Procedure.--(A) The 
President shall maintain detailed and timely records of the costs 
incurred under, or in connection with, any oversight contract or 
arrangement referred to in paragraph (1). The President shall submit 
such records to the responsible party that has agreed to reimburse the 
Fund for such costs with each demand or bill for such costs.
    ``(B) The President shall establish an administrative procedure 
under which a party that conducts any response action may contest the 
amount of costs incurred by the President in overseeing the conduct of 
that response action. The procedure shall be carried out separately 
from the conduct of the response action at the facility concerned.''.
    (b) Limitation on Oversight Costs.--Any costs of oversight incurred 
by the President that exceed 50 percent of the response costs incurred 
by the responsible party or parties at the facility concerned shall be 
paid by the Fund, unless the responsible party or parties have 
previously agreed to pay a larger sum under a court decree or the 
response action is being conducted under an order issued under section 
106 of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980.

                      TITLE III--REMEDY SELECTION

SEC. 301. IMMEDIATE RISK REDUCTION MEASURES.

    (a) Immediate Risk Reduction Measures.--Section 104(a) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        paragraphs (2), (3), (4), and (5), respectively;
            (2) in paragraph (5) (as redesignated), by striking out 
        ``paragraph (3)'' and inserting in lieu thereof ``paragraph 
        (4)''; and
            (2) by inserting after ``(a)'' the following new paragraph 
        (1): ``(1) Immediate Risk Reduction Measures.--
            ``(A) Authority to act.--Whenever any hazardous substance, 
        pollutant, or contaminant is released or there is a substantial 
        threat of such a release into the environment, and such release 
        may present an imminent and substantial danger to the public 
        health, the President, or the State in the case of a facility 
        for which a State has responsibility under section 127, is 
        authorized to act to minimize and prevent to the extent 
        possible the endangerment to the public health.
            ``(B) Types of measures allowed.--The actions that the 
        President or a State may take under this paragraph (hereinafter 
        in this section referred to as `immediate risk reduction 
        measures') may include, but are not limited to, the following:
                    ``(i) The removal of waste from barrels, tanks, or 
                lagoons.
                    ``(ii) The provision of alternative water supplies 
                or point-of-use treatment.
                    ``(iii) The prevention of discharges to surface 
                waters or ground waters.
                    ``(iv) The installation of fencing.
                    ``(v) The institution of other institutional 
                controls.
            ``(C) Measures prohibited.--The authority provided by this 
        paragraph does not include authority for the President or a 
        State to institute long-term remediation measures.
            ``(D) Timing.--The President or a State shall commence 
        immediate risk reduction measures under this paragraph--
                    ``(i) in the case of a facility that is not listed 
                on the National Priorities List, as soon as practicable 
                after the President or the State becomes aware of an 
                endangerment to the public health; and
                    ``(ii) in the case of a facility that is listed on 
                the National Priorities List, not later than 60 days 
                after the facility is so listed.
            ``(E) Cost effectiveness.--Any immediate risk reduction 
        measure carried out under this paragraph shall be conducted in 
        the most cost-effective manner practicable.
            ``(F) Funding.--The Fund may be used to pay for immediate 
        risk reduction measures taken under this paragraph. The 
        President may (in accordance with title V) recover the costs of 
        such measures from any person determined to be liable for such 
        costs but, in the case of measures costing less than 
        $1,000,000, the President may choose not to recover such costs.
            ``(G) Judicial review.--The decision of the President or a 
        State to act under this subsection is subject to review as 
        provided in chapter 7 of title 5, United States Code, except 
        that a reviewing court may set aside an action only if it is 
        found to be arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with law. Review may be had only in 
        the United States district court for the district in which the 
        facility or site is located.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 302. SITE SCORING.

    Section 105(c)(1) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9605(c)(1)) is 
amended--
            (1) by inserting ``(A)'' after ``Revision.--''; and
            (2) by adding at the end the following new subparagraph
            ``(B)(i) After the date of enactment of the Comprehensive 
        Superfund Improvement Act, the hazard ranking system shall be 
        applied to a site or facility only after the site or facility 
        has undergone immediate risk reduction measures pursuant to 
        section 104(a)(1). In applying such ranking system, conditions 
        existing at the site or facility before the immediate risk 
        reduction measures were taken shall not be taken into account.
            ``(ii) Clause (i) shall apply to all sites and facilities 
        to be newly listed on the National Priorities List after such 
        date of enactment and to any sites already so listed as of such 
        date of enactment but for which a remedial investigation and 
        feasibility study has not been conducted as of such date.
            ``(iii) As soon as practicable after such date of 
        enactment, the President shall revise the hazard ranking system 
        regulations to reflect the requirements in this subparagraph. 
        ''.

SEC. 303. LONG-TERM RESPONSE PLAN.

    (a) In General.--Section 104(a) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980, as amended by 
section 301, is further amended by adding at the end the following new 
paragraph:
    ``(6) Long-Term Response Plan.--
            ``(A) In general.--Before carrying out or allowing another 
        person to carry out a response action at a facility under this 
        subsection, the President, or the State in the case of a 
        facility for which a State has responsibility under section 
        127, shall prepare a long-term response plan (hereinafter in 
        this section referred to as an `LTRP' or `plan') for such 
        facility. The President or State may allow a potentially 
        responsible party to prepare such a plan and to carry out the 
        elements of the plan listed in clauses (i), (ii), and (iv) of 
        subparagraph (B).
            ``(B) Elements of ltrp.--The LTRP shall address the 
        following elements:
                    ``(i) Site characterization.--The site 
                characterization element of the plan shall determine 
                the type, nature, and extent of contamination at the 
                facility, including the location of the sources of the 
                release or threatened release. The site 
                characterization component shall be completed within 12 
                months after a facility is listed on the National 
                Priorities List.
                    ``(ii) Risk assessment.--The risk assessment 
                element of the plan shall be carried out in accordance 
                with paragraph (7). The risk assessment component shall 
                be performed simultaneously with the site 
                characterization component and shall be completed 
                within 12 months after a facility is listed on the 
                National Priorities List.
                    ``(iii) Community advisory councils.--The plan 
                shall take into account any recommendations made by the 
                community advisory council for the facility created 
                under section 117(f). The council shall provide its 
                recommendations with respect to the facility within 12 
                months after a facility is listed on the National 
                Priorities List.
                    ``(iv) Response option identification.--The 
                response option identification element of the plan 
                shall be carried out in accordance with paragraph (8) 
                during the 3-month period beginning on the date on 
                which the elements listed in clauses (i) through (iii) 
                are completed.
            ``(C) Applicability.--(i) A long-term response plan shall 
        be required for the following:
                    ``(I) A facility to be newly listed on the National 
                Priorities List after the date of enactment of the 
                Comprehensive Superfund Improvement Act.
                    ``(II) A facility or site listed on the National 
                Priorities List as of such date of enactment but for 
                which a remedial investigation and feasibility study 
                has not been conducted as of such date.
                    ``(III) A facility or site listed on the National 
                Priorities List as of such date of enactment, for which 
                a remedial investigation and feasibility study has been 
                conducted as of such date, but for which a contract has 
                not been executed for remedial design and remedial 
                action as of such date, if the potentially responsible 
                parties and the State in which the facility or site is 
                located agree, within 30 days after such date, to 
                subject themselves to the requirements of an LTRP.
    ``(ii) A long-term response plan shall not be required for any 
facility or site with respect to which a contract has been executed for 
remedial design and remedial action as of such date of enactment. ''.
    (b) Risk Assessments.--(1) Section 104(a) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9604(a)), as amended by section 301 and this section, is further 
amended by adding at the end the following new paragraph:
    ``(7) Risk Assessments.--
            ``(A) In general.--In carrying out a remedial investigation 
        with respect to a facility, the President or other person 
        carrying out the investigation shall assess the risk to human 
        health and the environment presented by the release or threat 
        of release of a hazardous substance, pollutant, or contaminant. 
        The risk assessment component of the remedial investigation 
        shall be carried out in compliance with regulations promulgated 
        by the President. The President shall ensure that the 
        regulations do not conflict with regional or State guidance on 
        risk assessments. At a minimum, the regulations shall--
                    ``(i) require risk assessments to use exposure 
                factors that accurately describe site or facility 
                conditions; and
                    ``(ii) require that values used to describe 
                quantities of a substance consumed by people accurately 
                reflect average conditions.
            ``(B) Current risk versus future risk.--In carrying out the 
        risk assessment component of the remedial investigation, the 
        President or other person carrying out the assessment shall 
        separately evaluate (i) the current risks, and (ii) the likely 
        future risks, to human health and the environment, based on 
        current and likely future land use of the site. If the 
        President determines that one or more such risks exist and 
        warrant remedial action, the President shall specify in the 
        record of decision which risks support the decision for 
        remedial action, which risks are current risks, and which risks 
        are likely future risks.
            ``(C) Best estimates versus worst case.--In carrying out 
        the risk assessment component of the remedial investigation, 
        the President or other person carrying out the assessment shall 
        rely to the maximum extent practicable on actual data rather 
        than on assumptions. The President or other person shall 
        provide the most plausible estimate of any risk to human health 
        and the environment. The President or other person also shall 
        describe any assumptions or uncertainties that pertain to such 
        estimate, including the likelihood of human exposure actually 
        occurring. Whenever the President or other person considers it 
        feasible, the President shall provide a quantitative estimate 
        of the uncertainty associated with the most plausible estimate 
        of the risk.''.
    (1) Performance of Risk Assessments by PRPS.--Section 104(a)(1) of 
such Act is amended in the second sentence--
            (A) by striking out ``may'' and inserting in lieu thereof 
        ``shall''; and
            (B) by inserting after ``remedial investigation'' the 
        following: ``(including the risk assessment component of the 
        remedial investigation)''.
    (c) Community Advisory Councils.--Section 117 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:
    ``(f) Community Advisory Councils.--
            ``(1) Creation.--The Administrator shall create a Community 
        Advisory Council for each facility listed on the National 
        Priorities List. Such Council shall be comprised of not more 
        than 20 persons appointed by the Governor of the State in which 
        the facility is located from among persons in the community in 
        which the facility is located. Each such council shall 
        represent a wide variety of local interests.
            ``(2) Purpose.--The Community Advisory Councils shall 
        provide information to potentially responsible parties, the 
        Administrator, and the State with regard to the future use of 
        the facility and affected off-site areas and resources. The 
        councils shall provide a public forum for citizens to voice 
        concerns regarding the response action to be taken and the 
        future use of the site.
            ``(3) Recommendations.--The President and the State shall 
        taken into consideration any recommendations made by a 
        Community Advisory Council in making decisions regarding any 
        response action under this title at the facility for which such 
        council was established.
            ``(4) Technical and administrative support for community 
        advisory councils.--The Administrator's regional offices shall 
        provide administrative and technical services for Community 
        Advisory Councils, including technical assistance in 
        understanding this title and the regulations under this 
        title.''.
    (d) Response Option Identification.--(1) Section 104(a) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9604(a)), as amended by section 301 and this 
section, is further amended by adding at the end the following new 
paragraph:
    ``(8) Response Option Identification.--(A) The response option 
identification element of a long-term remediation plan shall consist of 
the development of the range of possible response actions for a 
facility and the conduct of a cost-benefit analysis on each of the 
following categories of possible response actions:
                    ``(i) Containment (both permanent and temporary).
                    ``(ii) Remediation.
                    ``(iii) Monitoring.
                    ``(iv) Delisting.
                    ``(v) Institutional controls.
    ``(B) The President, the State, or the other person carrying out 
the identification shall take into account advice from the Community 
Advisory Council created for the facility concerned.
    ``(C) During the 30-day period occurring after completion of the 
response option identification, the Community Advisory Council, 
potentially responsible parties, and any other interested parties may 
submit comments to the President or the State on preferred options.''.
    (2) Cost-Benefit Regulations.--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 new 
subsection:
    ``(h) Cost-Benefit Regulations.--(1) The President shall promulgate 
and include in the national contingency plan guidelines for conducting 
cost/benefit analyses of response actions conducted pursuant to this 
Act. The guidelines shall include a standard methodology for evaluating 
benefits and costs over the lifetime of a remedial action.
    ``(2) In developing the standard methodology under paragraph (1), 
the President shall seek and take into account suggestions from States 
and political subdivisions of States for which costs and benefits to 
include in a cost-benefit analysis, and which methods to use in 
evaluating the costs and benefits. The costs may include costs related 
to public welfare.
    ``(3) In developing the methodology for measuring the costs of a 
remedial action, the President, at a minimum, shall take into account 
the following costs:
            ``(A) Costs associated with the remedial action, including 
        the following:
                    ``(i) Direct capital costs.
                    ``(ii) Operation and maintenance costs.
                    ``(iii) Preconstruction costs, including 
                permitting, siting, and regulatory compliance costs.
                    ``(iv) Capital acquisition, amortization, and debt 
                service costs.
                    ``(v) Consulting costs.
                    ``(vi) Costs and potential liabilities of future 
                environmental remediation if the remedial action does 
                not provide for a permanent remedy.
                    ``(vii) Land acquisition costs.
                    ``(viii) Costs of insurance.
            ``(B) Avoided or additional costs of cleaning up the 
        contamination using an alternative treatment technology.
    ``(4) In developing the methodology for measuring the benefits of a 
remedial action, the President shall, at a minimum, take into account 
the costs of benefits associated with the remedial action, including 
the following:
            ``(A) Increased property values.
            ``(B) Reduced public health risks.
            ``(C) Reduced ecological risks.
            ``(D) Improved environmental quality in the community.''.

SEC. 304. LONG-TERM RESPONSE SELECTION.

    (a) Long-Term Response Selection.--Section 121(a) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9621(a)) is amended to read as follows:
    ``(a) Response Selection.--
            ``(1) Section 104.--After completion of the long-term 
        response plan for a facility under section 104, the President, 
        or the State in the case of a facility for which a State has 
        responsibility under section 127, shall select that response or 
        combination of responses (from among the options identified in 
        the plan) that best achieves an acceptable level of residual 
        risk reduction at the facility or site (referred to as the 
        `cleanup goal'), in accordance with the general rules stated in 
        subsection (b).
            ``(2) Section 106.--With respect to actions determined to 
        be necessary by the President to be secured under section 106, 
        the President shall select appropriate remedial actions that 
        are in accordance with this section and, to the extent 
        practicable, the national contingency plan, and which provide 
        for cost-effective response.''
    (b) General Rules for Response Selection.--Section 121(b) of such 
Act is amended to read as follows:
    ``(b) General Rules.--
            ``(1) Selection process.--In selecting a response action 
        under this section, the President (or State, as the case may 
        be) shall review the long-term response plan for the facility 
        or site and consider any recommendations submitted to it from 
        the Community Advisory Council, the potentially responsible 
        parties, and the general public.
            ``(2) Factors to be considered.--In selecting a response 
        action, the President shall take into account the following:
                    ``(A) Site-specific factors, including the current 
                and likely future uses of the land and the ground water 
                (including any designated uses or institutional 
                controls), the potential for human exposure to 
                contamination, the actual risk to human health, and the 
                degree and type of contamination.
                    ``(B) The economic impact of the action on the 
                potentially responsible parties. In the case of a 
                potentially responsible party which is a municipality 
                or other subdivision of a State (including 
                municipalities that are owners or operators of 
                landfills), the President shall take into account the 
                funding priorities of the community.
                    ``(C) The costs and benefits of the response 
                options, as determined by cost-benefit analysis under 
                section 104(a)(8).
            ``(3) Types of responses that may be selected.--The types 
        of response actions that the President (or State, as the case 
        may be) may select include the following:
                    ``(A) Monitoring.
                    ``(B) Containment or stabilization, if the 
                President or State finds that any of the following 
                conditions exist with respect to the facility 
                concerned:
                            ``(i) The risks to human health or the 
                        environment are low.
                            ``(ii) The costs of other types of 
                        remediation, including treatment, are extremely 
                        high.
                            ``(iii) No proven technology exists for 
                        achieving a permanent and significant decrease 
                        in the toxicity, mobility, or volume of the 
                        hazardous substance, pollutant, or contaminant 
                        concerned that is proportionate to the risk to 
                        human health or the environment.
                    ``(C) Institutional controls as part of a permanent 
                remedy. The President shall give preference to using 
                such controls at facilities with low future risk (as 
                determined in the risk assessment component of a Long-
                Term Response Plan). Such controls include zoning 
                ordinances and other ordinances that restrict access to 
                or use of property (including groundwater management 
                zones), physical barriers that restrict access to 
                property (such as fences), and such other controls as 
                the President (or State) considers appropriate.
            ``(4) Preference for certain type of action.--In selecting 
        a response action, the President (or State) shall, with 
        reference to the factors set forth in section 121(b)(2), prefer 
        response actions that significantly reduce the volume, 
        toxicity, or mobility of the hazardous substances, pollutants, 
        and contaminants, or that significantly reduce actual or 
        threatened exposure to such hazardous substances, pollutants, 
        or contaminants.
            ``(5) Limitation on standardized remedies.--The President 
        (or State) shall not select a response action that is a 
        standardized remedy in any case in which the use of an 
        alternative technology would be less expensive but as 
        protective of health and the environment as the standardized 
        remedy. For purposes of this paragraph, the term `standardized 
        remedy' means a remedy that is determined by the President to 
        be protective of human health and the environment for a 
        category of facilities.
            ``(6) Compliance boundaries.-- The President (or State), in 
        determining the boundaries within which a response action is to 
        be achieved, shall extend site or facility boundaries to 
        include areas subject to easements or other institutional 
        controls, such as zones of groundwater management.
            ``(7) Judicial review.--The selection of a response action 
        by the President or a State under this subsection is subject to 
        review as provided in chapter 7 of title 5, United States Code, 
        except that a reviewing court may set aside an action only if 
        it is found to be arbitrary, capricious, an abuse of 
        discretion, or otherwise not in accordance with law. Review may 
        be had only in the United States district court for the 
        district in which the facility or site is located. In any such 
        review, the facts of the case are subject to a trial de novo by 
        the reviewing court. Any appeal of the selection of a response 
        action shall be filed within 60 days after the selection is 
        made.
            ``(8) Deadline for implementation to begin.--The 
        implementation of a response action selected pursuant to this 
        section shall begin no later than 60 days after the selection 
        has been made and--
                    ``(A) an appeal of such selection has been filed 
                and a court has finally acted upon such appeal; or
                    ``(B) the time for filing an appeal of such 
                selection has expired and no appeal has been filed.''.
    (c) Repeal of ARARs Cleanup Standards.--Section 121(d) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9621(d)) is amended--
            (1) by striking out paragraphs (2), (3), and (4); and
            (2) by striking out ``(1)''.
    (d) Applicability.--The amendments made by this section shall apply 
with respect to any facility or site with respect to which--
            (1) no contract for remedial design and remedial action has 
        been executed as of the date of the enactment of this Act; and
            (2) the pertinent parties have not opted to subject 
        themselves to the long-term response plan and related 
        requirements within 30 days after such date of enactment (as 
        described in section 104(a)(6)(C)).
    (e) Cross Reference Amendment.--Section 104(c)(4) of such Act is 
amended to read as follows:
    ``(4) Selection of Response.--The President shall select response 
actions to carry out this section in accordance with section 121 of 
this Act.''.

SEC. 305. PERIODIC REVIEW.

    Section 121(c) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9621(c)) is amended 
by striking out the first two sentences and inserting in lieu thereof 
the following: ``The President, or the State in the case of a facility 
for which a State has responsibility under section 127, shall review 
each response action selected under this section not less often than 
once every 5 years after the initiation of the action to assure that 
human health and the environment are being protected by the action 
being implemented. If upon such review it is the judgment of the 
President or State that additional actions are appropriate at such site 
in accordance with section 104, the President or State shall take or 
require such action, including a supplemental long-term response plan 
under section 104. In the case of a review carried out by the 
President, if it is the judgment of the President that additional 
actions are appropriate at such site in accordance with section 106, 
the President or State shall take or require such action.''.

SEC. 306. DELISTING OF FACILITIES AND SITES.

    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 new subsection:
    ``(h) Delisting of Facilities and Sites.--After a response action 
selected for a site or facility achieves the cleanup goal set for such 
facility under section 121(a), the President shall delist the site or 
facility from the National Priorities List. Such delisting may occur 
even if monitoring or operation and maintenance are being conducted at 
the facility.''.

                           TITLE IV--FUNDING

SEC. 401. 5-YEAR EXTENSION OF HAZARDOUS SUBSTANCE SUPERFUND.

    (a) Extension of Taxes.--
            (1) The following provisions of the Internal Revenue Code 
        of 1986 are each amended by striking ``January 1, 1996'' each 
        place it appears and inserting ``January 1, 2001'':
                    (A) Section 59A(e)(1) (relating to application of 
                environmental tax).
                    (B) Paragraphs (1) and (3) of section 4611(e) 
                (relating to application of Hazardous Substance 
                Superfund financing rate).
            (2) Paragraph (2) of section 4611(e) of such Code is 
        amended--
                    (A) by striking ``1993'' and inserting ``1998'',
                    (B) by striking ``1994'' each place it appears and 
                inserting ``1999'', and
                    (C) by striking ``1995'' each place it appears and 
                inserting ``2000''.
    (b) Increase in Aggregate Tax Which May Be Collected.--Paragraph 
(3) of section 4611(e) of such Code is amended by striking 
``$11,970,000,000'' each place it appears and inserting 
``$26,970,000,000'' and by striking ``December 31, 1995'' and inserting 
``December 31, 2000''.
    (c) Extension of Repayment Deadline for Superfund Borrowing.--
Subparagraph (B) of section 9507(d)(3) is amended by striking 
``December 31, 1995'' and inserting ``December 31, 2000''.
    (d) Extension of Authorization of Appropriations to Trust Fund.--
Subsection (b) of section 517 of the Superfund Revenue Act of 1986 (26 
U.S.C. 9507 note) is amended by striking ``and'' at the end of 
paragraph (8), by striking the period at the end of paragraph (9) and 
inserting ``, and'', and by adding at the end thereof the following new 
paragraphs:
            ``(10) 1996, $250,000,000,
            ``(11) 1997, $250,000,000,
            ``(12) 1998, $250,000,000,
            ``(12) 1999, $250,000,000, and
            ``(13) 2000, $250,000,000,''.

SEC. 402. INCREASE IN ENVIRONMENTAL INCOME TAX.

    (a) In General.--Subsection (a) of section 59A of the Internal 
Revenue Code of 1986 (relating to environmental tax) is amended by 
inserting ``(0.24 percent in the case of taxable years beginning after 
December 31, 1994, and before January 1, 2000)''.
    (b) Increased Revenues Not Deposited in Superfund.--Subsection (b) 
of section 9507 of such Code (relating to Hazardous Substance 
Superfund) is amended by adding at the end the following new sentence: 
``Only 50 percent of the taxes received in the Treasury under section 
59A with respect to taxable years beginning after December 31, 1994, 
and before January 1, 2000, shall be taken into account under paragraph 
(1).''
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.

SEC. 403. ENVIRONMENTAL FEES AND ASSESSMENTS ON INSURANCE COMPANIES.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
inserting after section ____ the following new section:
``Sec.   . Environmental fees and assessments on insurance companies''.

                               [reserved]

    (b) Clerical Amendments.--The table of sections for chapter ____ of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to section ____ the following:
``Sec.   . Environmental fees and assessments on insurance companies''.

SEC. 404. RETROACTIVE LIABILITY FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end thereof the following new section:

``SEC. 9512. RETROACTIVE LIABILITY FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Retroactive 
Liability Fund', consisting of such amounts as may be appropriated or 
credited to such Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Fund.--There are hereby appropriated to the 
Retroactive Liability Fund--
            ``(1) amounts equivalent to 50 percent of the revenues 
        received in the Treasury from the tax imposed by section 59A 
        (relating to environmental tax) for taxable years beginning 
        after December 31, 1994, and before January 1, 2000; and
            ``(2) amounts received from fees and assessments imposed by 
        the amendments made by section 403 of this Act.
    ``(c) Expenditures From Fund.--Amounts in the Retroactive Liability 
Fund shall be available, as provided in appropriation Acts, only for 
purposes of making expenditures to carry out section 107(n) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Retroactive Liability 
                                        Fund.''

                                 <all>

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