II 

110TH CONGRESS 

1ST SESSION S. 1179 

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

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

more than $50,000,000, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 20, 2007 

Mr. CASEY introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

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

removal and remedial action is estimated to cost more 

than $50,000,000, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Megasite Remediation Act of 2007’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

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1 (1) The Comprehensive Environmental Re2 sponse, Compensation, and Liability Act of 1980 es3 tablished a Federal Superfund trust fund for the 

4 purpose of hazardous substance removal and remedi5 ation at sites across the Nation. 

6 (2) The release of hazardous substances may 

7 threaten and impair public health, the local environ8 ment, community infrastructure, the economy, and 

9 social well being. 

10 (3) The Environmental Protection Agency has 

11 evaluated more than 45,000 sites and has currently 

12 listed 1,086 non-Federal sites on the National Prior13 ities List. 

14 (4) One in 4 Americans lives within 3 miles of 

15 a Superfund site. 

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

17 chemical feedstock, and corporate taxes in 1995 has 

18 contributed to a funding shortfall and has shifted 

19 the burden of cleanup to the general public, which 

20 has prevented numerous Superfund sites from re21 ceiving new construction funding in fiscal years 

22 2004, 2005, and 2006 and slowed the pace of exist23 ing cleanups. 

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

3 remediation costs. 

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

8 of 1980 after reestablishment of Superfund taxes. 

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

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

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

15 exceed $50,000,000 to be megasites. 

16 (10) Megasites typically are among the larger, 

17 more complex, and more severely contaminated of 

18 sites, presenting the greatest cleanup challenges. As 

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

21 under the Superfund program. 

22 (11) The Environmental Protection Agency 

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

25 a few sites. These megasites siphon funding from 

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1 other Superfund sites and result in construction 

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

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

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

8 annual cost per megasite is projected to be at least 

9 $140,000,000. 

10 (13) Megasites differ from non-megasites in 

11 that they require more resources over the long term 

12 to address complexities associated with developing 

13 remedies and cleaning up contamination that can 

14 cover many square miles and may involve multiple 

15 communities, responsible parties, Indian Tribes, or 

16 States. 

17 (14) For some megasites there is no ascertain18 able final remedy because remediation may involve 

19 decades of sequential actions, and institutional con20 trols may be required in perpetuity. According to the 

21 Environmental Protection Agency, more than half of 

22 the mining sites currently listed on the National Pri23 orities List will require operation and maintenance 

24 in perpetuity. 

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1 (15) Responsible parties may not be able to 

2 fund megasite remediation activities that are antici3 pated to last for decades or longer. The lack of a 

4 dedicated revenue stream raises serious concerns 

5 about how a remediation program expected to last 

6 for decades, if not centuries, can be successfully im7 plemented. 

8 (16) At megasites with no viable responsible 

9 parties, the Federal Government pays 90 percent of 

10 the construction costs, with the State paying the 

11 other 10 percent. Once construction is completed, 

12 the State is solely responsible for paying all oper13 ation and maintenance costs, a time frame that for 

14 many megasites may extend in perpetuity. 

15 SEC. 3. SUPERFUND TAXES. 

16 (a) PERMANENT EXTENSION.— 

17 (1) EXCISE TAXES.—Section 4611(e) of the In18 ternal Revenue Code of 1986 is amended to read as 

19 follows: 

20 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE

21 SUPERFUND FINANCING RATE.— 

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Hazardous Substance Superfund fi24 nancing rate under this section shall apply after De25 cember 31, 1986, and before January 1, 1996, and 

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1 after the date of the enactment of the Superfund 

2 Equity and Megasite Remediation Act of 2007 or if 

3 later, the date which is 30 days after the last day 

4 of any calendar quarter for which the Secretary esti5 mates that, as of the close of that quarter, the unob6 ligated balance in the Hazardous Substance Super7 fund is less than $5,700,000,000. 

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

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

10 Substance Superfund financing rate shall not apply 

11 during a calendar quarter if the Secretary estimates 

12 that, as of the close of the preceding calendar quar13 ter, the unobligated balance in the Hazardous Sub14 stance Superfund exceeds $5,700,000,000.’’. 

15 (2) CORPORATE ENVIRONMENTAL INCOME

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

17 read as follows: 

18 ‘‘(e) APPLICATION OF TAX.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the tax imposed by this section shall 

21 apply to taxable years beginning after December 31, 

22 1986, and before January 1, 1996, and to taxable 

23 years beginning after the date of the enactment of 

24 the Superfund Equity and Megasite Remediation 

25 Act of 2007 or if later, the date which is 30 days 

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1 after the last day of any calendar quarter for which 

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

3 quarter, the unobligated balance in the Hazardous 

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

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

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

7 this section shall not apply during a calendar quar8 ter if the Secretary estimates that, as of the close 

9 of the preceding calendar quarter, the unobligated 

10 balance in the Hazardous Substance Superfund ex11 ceeds $5,700,000,000.’’. 

12 (3) TECHNICAL AMENDMENTS.— 

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

14 amended— 

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

16 paragraph (1)(A), 

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

18 paragraph (1)(B), and 

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

20 in the heading. 

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

22 amended— 

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

24 oil, as the case may be’’ in the text and in25 serting ‘‘the crude oil’’, and 

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

2 heading. 

3 (b) TEMPORARY TAX INCREASE FOR CLEANUP OF

4 CERTAIN SUPERFUND SITES.— 

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

6 4611 of such Code is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(3) TEMPORARY RATE INCREASE TO FUND

9 CLEANUP OF CERTAIN SUPERFUND SITES.—During 

10 the period beginning on January 1, 2008, and end11 ing on December 31, 2012, the rate of tax specified 

12 by subparagraph (A) of paragraph (2) shall be in13 creased by the amount equal to 50 percent of such 

14 rate.’’. 

15 (2) CERTAIN CHEMICALS AND IMPORTED SUB16 STANCES.—Section 4661 of such Code (relating to 

17 imposition of tax on certain chemicals) is amended 

18 by adding at the end the following: 

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

20 CERTAIN SUPERFUND SITES.—During the period begin21 ning on January 1, 2008, and ending on December 31, 

22 2012, each amount of tax per ton with respect to a sub23 stance specified in subsection (b) shall be increased by an 

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

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1 (3) TEMPORARY INCREASE IN CORPORATE EN2 VIRONMENTAL INCOME TAX CLEANUP OF CERTAIN

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

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

5 amended by adding at the end the following flush 

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

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

8 December 31, 2012, the preceding sentence shall be 

9 applied by substituting ‘0.18 percent’ for ‘0.12 per10 cent’.’’. 

11 (4) SEPARATE ACCOUNTING FOR CLEANUP

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

13 Hazardous Substance Superfund) is amended by 

14 adding at the end the following new subsection: 

15 ‘‘(f) ESTABLISHMENT OF MEGASITES AND HIGH

16 RISK SITES CLEANUP ACCOUNT.— 

17 ‘‘(1) CREATION OF ACCOUNT.—There is estab18 lished in the Hazardous Substance Superfund a sep19 arate account to be known as the ‘Megasites and 

20 High Risk Sites Cleanup Account’ consisting of such 

21 amounts as may be transferred or credited to the 

22 Megasites and High Risk Sites Cleanup Account as 

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

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

25 shall transfer to the Megasites and High Risk Sites 

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1 Cleanup Account from the amounts appropriated to 

2 Superfund under subsection (b) amounts equal to— 

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

4 section 59A by reason of the last sentence of 

5 subsection (a) thereof, 

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

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

8 thereof, 

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

10 section 4661 by reason of subsection (d) there11 of, and 

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

13 section 4671 by reason of the increase in tax 

14 under section 4661(d). 

15 ‘‘(3) EXPENDITURES FROM ACCOUNT.— 

16 Amounts in the Megasites and High Risk Sites 

17 Cleanup Account shall be available, as provided by 

18 appropriation Acts, for making expenditures in ac19 cordance with section 4 of the Superfund Equity and 

20 Megasite Remediation Act of 2007. 

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

22 Amounts remaining in the Megasites and High Risk 

23 Sites Cleanup Account shall revert to the Hazardous 

24 Substance Superfund on the date which is the later 

25 of— 

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1 ‘‘(A) December 31, 2013, or 

2 ‘‘(B) the date as of which the Adminis3 trator of the Environmental Protection Agency 

4 makes the determination under section 4 of 

5 such Act.’’. 

6 (c) EFFECTIVE DATES.— 

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

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

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

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

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

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

13 years beginning after the date of the enactment of 

14 this Act. 

15 SEC. 4. EXPENDITURES FROM TRUST FUND. 

16 Amounts in the Megasites Cleanup and High Risk 

17 Sites Account established under section 9507(f) of the In18 ternal Revenue Code of 1986 shall be used only for mak19 ing expenditures in accordance with such section 9507(f) 

20 with respect to any site on the National Priorities List 

21 under the Comprehensive Environmental Response, Com22 pensation, and Liability Act of 1980 (‘‘Superfund’’)— 

23 (1) at which response is cumulatively estimated 

24 by the Administrator of the Environmental Protec25 tion Agency to cost more than $50,000,000, or 

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

5 until such time as the Administrator determines by rule 

6 that no response actions are necessary to protect human 

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

11 SEC. 5. ANNUAL REPORTS TO CONGRESS. 

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

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

15 the President submits to the Congress the budget for a 

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

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

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

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

22 following: 

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

24 hazardous substance has been identified. 

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1 (2) A statement of the status of response actions pro2 posed for or initiated at each site. 

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

4 response actions at each site. 

5 (4) A statement of the amount of funds obligated by 

6 the Administrator for such response actions at each site, 

7 and the progress made in implementing the response ac8 tions at each site during the fiscal year preceding the year 

9 in which the report is submitted, including an explanation 

10 of— 

11 (A) any cost overruns for such response actions, 

12 if the amount of funds obligated for those response 

13 actions exceeds the estimated cost for those response 

14 actions by the greater of 15 percent of the estimated 

15 cost or $10,000,000; and 

16 (B) any deviation in the schedule of more than 

17 180 days for such response actions at each site. 

18 (5) A statement of the amount of funds allocated by 

19 the Administrator for, and the anticipated progress in im20 plementing, such response actions during the fiscal year 

21 in which the report is submitted. 

22 (6) A statement of the amount of funds requested 

23 for such response actions for the 5 fiscal years following 

24 the fiscal year in which the report is submitted, and the 

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1 anticipated progress in implementing such response ac2 tions for the fiscal year for which the budget is submitted. 

3 (7) A statement of the total costs incurred for such 

4 response actions as of the date of the submission of the 

5 report. 

6 (8) A statement of the estimated cost of completing 

7 all response actions required with respect to each site, in8 cluding, where relevant, the estimated cost of such activi9 ties in each of the 5 fiscal years following the fiscal year 

10 in which the report is submitted. 

11 (9) A statement of the estimated schedule for com12 pleting all response actions at each site. 

13 (10) A statement of the activities, if any, including 

14 expenditures for grants awarded to communities for tech15 nical assistance. 

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