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103D CONGRESS

1ST SESSION H. R. 2718

To amend the Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 and the Solid Waste Disposal Act to limit the

liability under those Acts of lenders and fiduciaries.

IN THE HOUSE OF REPRESENTATIVES

JULY 23, 1993

Mr. COX introduced the following bill; which was referred jointly to the

Committees on Energy and Commerce and Public Works and Transportation

A BILL

To amend the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 and the Solid Waste

Disposal Act to limit the liability under those Acts of

lenders and fiduciaries.

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

3 SECTION 1. LIMITATION OF LIABILITY UNDER THE COM4 PREHENSIVE ENVIRONMENTAL RESPONSE,

5 COMPENSATION, AND LIABILITY ACT OF 1980.

6 (a) EXCLUSION FROM DEFINITION OF OWNER AND

7 OPERATOR.—Section 101(20) of the Comprehensive Envi-
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1 ronmental Response, Compensation, and Liability Act of

2 1980 (42 U.S.C. 9601(20)) is amended—

3 (1) by striking out the last sentence of subpara4 graph (A); and

5 (2) by adding at the end the following new sub6 paragraphs:

7 ‘‘(E)(i) The term ‘owner or operator’ does

8 not include a person whose interest in a vessel

9 or facility arises in connection with a secured fi10 nancing arrangement or who acquires such in11 terest as a result of foreclosing upon a vessel or

12 facility.

13 ‘‘(ii) This subparagraph does not exempt

14 from liability any person described in clause (i)

15 who willfully, knowingly, or recklessly causes or

16 exacerbates a release or threatened release of a

17 hazardous substance, and such a person shall

18 be liable for response costs to the extent that

19 the release or threatened release is attributable

20 to the person’s activities.

21 ‘‘(F)(i) The term ‘owner or operator’ does

22 not include—

23 ‘‘(I) a fiduciary,

24 ‘‘(II) a trustee, pursuant to an inden25 ture agreement or similar financing agree-
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1 ment, for debt securities, certificates of in2 terest, or participation in any such debt se3 curities, or

4 ‘‘(III) any successor to a fiduciary or

5 trustee described in subclause (II),

6 which acquires an interest in or control of a

7 vessel or facility for purposes of administering

8 an estate or trust. This subparagraph does not

9 exempt a fiduciary or trustee whose appoint10 ment is solely an attempt to evade liability

11 under this Act.

12 ‘‘(ii) This subparagraph does not exempt

13 from liability a person described in clause (i)

14 who willfully, knowingly, or recklessly causes or

15 exacerbates a release or threatened release of a

16 hazardous substance, and such a person shall

17 be liable for response costs to the extent that

18 the release or threatened release is attributable

19 to the person’s activities.

20 ‘‘(iii) Nothing in this subparagraph shall

21 prevent claims against the assets that con22 stitute the estate held by the fiduciary or trust23 ee or the filing of actions against the fiduciary

24 or trustee in its representative capacity.’’.
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1 (b) SECTION 107 LIABILITY.—Section 107(a) of such

2 Act is amended by adding at the end the following sen3 tence: ‘‘The liability established by subparagraphs (E)(ii)

4 and (F)(ii) of section 101(20) shall be deemed to arise

5 under this subsection.’’.

6 SEC. 2. LIMITATION OF LIABILITY UNDER SOLID WASTE

7 DISPOSAL ACT.

8 The Solid Waste Disposal Act (42 U.S.C. 6901 et

9 seq.) is amended—

10 (1) by adding at the end of section 1004 the

11 following paragraph:

12 ‘‘(42) The terms ‘owner’, ‘operator’, ‘generator’,

13 and ‘transporter’ do not include a person who would

14 not be an owner or operator within the meaning of

15 subparagraphs (E) and (F) of section 101(20) of the

16 Comprehensive Environmental Response, Compensa17 tion, and Liability Act of 1980.’’; and

18 (2) by adding at the end of section 9003(h)(9)

19 the following sentence: ‘‘This definition shall be con20 strued to be parallel and comparable to that speci21 fied in section 101(20)(E) of the Comprehensive En22 vironmental Response, Compensation, and Liability

23 Act of 1980.’’.

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