I
105TH CONGRESS
1ST SESSION
H. R. 1395
To assist the States and local governments in assessing and remediating
brownfield sites and encouraging environmental cleanup programs, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 1997
Mr. ROTHMAN (for himself, Mr. OLVER, Mr. HINCHEY, and Mr. PASTOR) in-
troduced the following bill; which was referred to the Committee on Com-
merce, and in addition to the Committee on Transportation and Infra-
structure, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To assist the States and local governments in assessing and
remediating brownfield sites and encouraging environ-
mental cleanup programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Brownfields and Environmental Cleanup Act of 1997’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—BROWNFIELD REMEDIATION AND ENVIRONMENTAL
CLEANUP
Sec. 101. Definitions.
Sec. 102. Inventory and assessment grant program.
Sec. 103. Grants for revolving loan programs.
Sec. 104. Economic redevelopment grants.
Sec. 105. Reports.
Sec. 106. Limitations on use of funds.
Sec. 107. Effect on other laws.
Sec. 108. Regulations.
Sec. 109. Authorizations of appropriations.
TITLE II—PROSPECTIVE PURCHASERS
Sec. 201. Limitations on liability for response costs for prospective purchasers.
TITLE III—INNOCENT LANDOWNERS
Sec. 301. Innocent landowners.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) past uses of land in the United States for
industrial and commercial purposes have created
many sites throughout the United States that have
environmental contamination;
(2) Congress and the governments of States
and political subdivisions of States have enacted
laws to—
(A) prevent environmental contamination;
and
(B) carry out response actions to correct
past instances of environmental contamination;
(3) many sites are minimally contaminated, do
not pose serious threats to human health or the en-
(4) reducing transaction costs and paperwork,
and preventing needless duplication of effort and
delay at all levels of government.
TITLE I—BROWNFIELD REMEDI-
ATION AND ENVIRONMENTAL
CLEANUP
SEC. 101. DEFINITIONS.
In this title:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) BROWNFIELD SITE.—The term ‘‘brownfield
site’’ means a facility that has or is suspected of
having environmental contamination that—
(A) could prevent the timely use, develop-
ment, reuse, or redevelopment of the facility;
and
(B) is relatively limited in scope or severity
and can be comprehensively assessed and read-
ily analyzed.
(3) CONTAMINANT.—The term ‘‘contaminant’’
includes any hazardous substance (as defined in sec-
tion 101 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601)).
(4) DISPOSAL.—The term ‘‘disposal’’ has the
meaning given the term in section 1004 of the Solid
Waste Disposal Act (42 U.S.C. 6903).
(5) ENVIRONMENT.—The term ‘‘environment’’
has the meaning given the term in section 101 of the
Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9601).
(6) ENVIRONMENTAL
CONTAMINATION.—The
term ‘‘environmental contamination’’ means the ex-
istence at a facility of 1 or more contaminants that
may pose a threat to human health or the environ-
ment.
(7) FACILITY.—The term ‘‘facility’’ has the
meaning given the term in section 101 of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601).
(8) GRANT.—The term ‘‘grant’’ includes a co-
operative agreement.
(9) GROUND
WATER.—The term ‘‘ground
water’’ has the meaning given the term in section
101 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601).
(10) INDIAN TRIBE.—The term ‘‘Indian tribe’’
has the meaning given the term in section 101 of the
Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9601).
(11) LOCAL
GOVERNMENT.—The term ‘‘local
government’’ has the meaning given the term ‘‘unit
of general local government’’ in the first sentence of
section 102(a)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(1)),
except that the term includes an Indian tribe.
(12) NATURAL RESOURCES.—The term ‘‘natu-
ral resources’’ has the meaning given the term in
section 101 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601).
(13) OWNER.—The term ‘‘owner’’ has the
meaning given the term in section 101 of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601).
(14) PERSON.—The term ‘‘person’’ has the
meaning given the term in section 101 of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601).
(15) PROSPECTIVE
PURCHASER.—The term
‘‘prospective purchaser’’ means a prospective pur-
chaser of a brownfield site.
(16) RELEASE.—The term ‘‘release’’ has the
meaning given the term in section 101 of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601).
(17) RESPONSE ACTION.—The term ‘‘response
action’’ has the meaning given the term ‘‘response’’
in section 101 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601).
(18) SITE ASSESSMENT.—
(A) IN GENERAL.—The term ‘‘site assess-
ment’’ means an investigation that determines
the nature and extent of a release or potential
release 
of 
a 
hazardous 
substance 
at 
a
brownfield site and meets the requirements of
subparagraph (B).
(B) INVESTIGATION.—For the purposes of
this paragraph, an investigation that meets the
requirements of this subparagraph—
(i) shall include—
(I) an onsite evaluation; and
(II) sufficient testing, sampling,
and other field-data-gathering activi-
ties to accurately determine whether
the brownfield site is contaminated
and the threats to human health and
the environment posed by the release
of contaminants at the brownfield
site; and
(ii) may include—
(I) review of such information re-
garding the brownfield site and pre-
vious uses as is available at the time
of the review; and
(II) an offsite evaluation, if ap-
propriate.
(19) STATE.—The term ‘‘State’’ has the mean-
ing given the term in section 101 of the Comprehen-
sive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601).
SEC. 102. INVENTORY AND ASSESSMENT GRANT PROGRAM.
(a) IN GENERAL.—The Administrator shall establish
a program to award grants to States or local governments
to inventory brownfield sites and to conduct site assess-
ments of brownfield sites.
(b) SCOPE OF PROGRAM.—
(1) GRANT AWARDS.—To carry out subsection
(a), the Administrator may, on approval of an appli-
cation, provide financial assistance to a State or
local government.
(2) GRANT APPLICATION.—An application for a
grant under this section shall include, to the extent
practicable, each of the following:
(A) An identification of the brownfield
sites for which assistance is sought and a de-
scription of the effect of the brownfield sites on
the community, including a description of the
nature and extent of any known or suspected
environmental contamination within the areas.
(B) A description of the need of the appli-
cant for financial assistance to inventory
brownfield sites and conduct site assessments.
(C) A demonstration of the potential of the
grant assistance to stimulate economic develop-
ment, including the extent to which the assist-
ance will stimulate the availability of other
funds for site assessment, site identification, or
environmental remediation and subsequent re-
development of the areas in which eligible
brownfield sites are situated.
(D) A description of the local commitment
as of the date of the application, which shall in-
clude a community involvement plan that dem-
onstrates meaningful community involvement.
(G) Such other factors as the Adminis-
trator considers relevant to carry out this title.
(3) APPROVAL OF APPLICATION.—
(A) IN GENERAL.—In making a decision
whether to approve an application under para-
graph (1), the Administrator shall—
(i) consider the need of the State or
local government for financial assistance to
carry out this section;
(ii) consider the ability of the appli-
cant to carry out an inventory and site as-
sessment under this section;
(iii) ensure a fair distribution of grant
funds between urban and nonurban areas;
and
(iv) consider such other factors as the
Administrator considers relevant to carry
out this section.
(B) GRANT CONDITIONS.—As a condition
of awarding a grant under this section, the Ad-
ministrator may, on the basis of the criteria
considered under subparagraph (A), attach
such conditions to the grant as the Adminis-
trator determines appropriate.
(4) GRANT AMOUNT.—The amount of a grant
awarded to any State or local government under
subsection (a) for inventory and site assessment of
1 or more brownfield sites shall not exceed
$200,000.
(5) TERMINATION OF GRANTS.—If the Admin-
istrator determines that a State or local government
that receives a grant under this subsection is in vio-
lation of a condition of a grant referred to in para-
graph (3)(B), the Administrator may terminate the
grant made to the State or local government and re-
quire full or partial repayment of the grant.
SEC. 103. GRANTS FOR REVOLVING LOAN PROGRAMS.
(a) IN GENERAL.—
(1) ESTABLISHMENT.—The Administrator shall
establish a program to award grants to be used by
State or local governments to capitalize revolving
loan funds for the cleanup of brownfield sites.
(2) LOANS.—The loans may be provided by the
State or local government to finance cleanups of
brownfield sites by the State or local government, or
by an owner or a prospective purchaser of a
brownfield site (including a local government) at
which a cleanup is being conducted or is proposed to
be conducted.
(b) SCOPE OF PROGRAM.—
(1) IN GENERAL.—
(A) GRANTS.—In carrying out subsection
(a), the Administrator may award a grant to a
State or local government that submits an ap-
plication to the Administrator that is approved
by the Administrator.
(B) USE OF GRANT.—The grant shall be
used by the State or local government to cap-
italize a revolving loan fund to be used for
cleanup of 1 or more brownfield sites.
(C) GRANT APPLICATION.—An application
for a grant under this section shall be in such
form as the Administrator determines appro-
priate. At a minimum, the application shall in-
clude the following:
(i) Evidence that the grant applicant
has the financial controls and resources to
administer a revolving loan fund in accord-
ance with this title.
(ii) Provisions that—
(I) ensure that the grant appli-
cant has the ability to monitor the use
of funds provided to loan recipients
under this title;
(II) ensure that any cleanup con-
ducted by the applicant is protective
of human health and the environment;
and
(III) ensure that any cleanup
funded under this Act will comply
with all applicable Federal and State
laws that apply to the cleanup.
(iii) Identification of the criteria to be
used by the State or local government in
providing for loans under the program.
The criteria shall include the financial
standing of the applicants for the loans,
the use to which the loans will be put, the
provisions to be used to ensure repayment
of the loan funds, and the following:
(I) A complete description of the
financial standing of the applicant
that includes a description of the as-
sets, cash flow, and liabilities of the
applicant.
(II) A written statement that at-
tests that the cleanup of the site
would not occur without access to the
revolving loan fund.
(III) The proposed method, and
anticipated period of time required, to
clean up the environmental contami-
nation at the brownfield site.
(IV) An estimate of the proposed
total cost of the cleanup to be con-
ducted at the brownfield site.
(V) 
An 
analysis 
that 
dem-
onstrates 
the 
potential 
of 
the
brownfield site for stimulating eco-
nomic development on completion of
the cleanup of the brownfield site.
(2) GRANT APPROVAL.—In determining wheth-
er to award a grant under this section, the Adminis-
trator shall consider—
(A) the need of the State or local govern-
ment for financial assistance to clean up
brownfield sites that are the subject of the ap-
plication, taking into consideration the financial
resources available to the State or local govern-
ment;
(B) the ability of the State or local govern-
ment to ensure that the applicants repay the
loans in a timely manner;
(C) the extent to which the cleanup of the
brownfield site or sites would reduce health and
environmental risks caused by the release of
contaminants at, or from, the brownfield site or
sites;
(D) the demonstrable potential of the
brownfield site or sites for stimulating economic
development on completion of the cleanup;
(E) the demonstrated ability of the State
or local government to administer such a loan
program;
(F) the demonstrated experience of the
State or local government regarding brownfield
sites and the reuse of contaminated land, in-
cluding whether the government has received
any grant under the Comprehensive Environ-
mental Response, Compensation, and Liability
Act of 1980 (42 U.S.C. 9601 et seq.) to assess
brownfield sites, except that applicants who
have not previously received such a grant may
be considered for awards under this section;
(G) the efficiency of having the loan ad-
ministered by the level of government rep-
resented by the applicant entity;
(H) the experience of administering any
loan programs by the entity, including the loan
repayment rates;
(I) the demonstrations made regarding the
ability of the State or local government to en-
sure a fair distribution of grant funds among
brownfield sites within the jurisdiction of the
State or local government; and
(J) such other factors as the Administrator
considers relevant to carry out this section.
(3) GRANT AMOUNT.—The amount of a grant
made to a State or local applicant under this section
shall not exceed $500,000.
(4) REVOLVING LOAN FUND APPROVAL.—Each
application for a grant to capitalize a revolving loan
fund under this section shall, as a condition of ap-
proval by the Administrator, include a written state-
ment by the State or local government that—
(A) cleanups to be funded under the loan
program of the State or local government shall
be conducted under the auspices of, and in com-
pliance with, the State voluntary cleanup pro-
gram or State Superfund program or Federal
authority;
(B) the cleanup or proposed voluntary
cleanup is cost-effective; and
(C) the estimated total cost of the cleanup
is reasonable.
(c) GRANT AGREEMENTS.—Each grant under this
section for a revolving loan fund shall be made pursuant
to a grant agreement. At a minimum, the grant agreement
shall include provisions that ensure the following:
(1) COMPLIANCE WITH LAW.—The grant recipi-
ent will include in all loan agreements a requirement
that the loan recipient shall comply with all applica-
ble Federal and State laws applicable to the cleanup
and shall ensure that the cleanup is protective of
human health and the environment.
(2) REPAYMENT.—The State or local govern-
ment will require repayment of the loan consistent
with this title.
(3) USE OF FUNDS.—The State or local govern-
ment will use the funds solely for purposes of estab-
lishing and capitalizing a loan program in accord-
ance with this title and of cleaning up the environ-
mental contamination at the brownfield site or sites.
(4) REPAYMENT OF FUNDS.—The State or local
government will require in each loan agreement, and
take necessary steps to ensure, that the loan recipi-
ent will use the loan funds solely for the purposes
stated in paragraph (3), and will require the return
of any excess funds immediately on a determination
by the appropriate State or local official that the
cleanup has been completed.
(5) NONTRANSFERABILITY.—The funds will not
be transferable, unless the Administrator agrees to
the transfer in writing.
(6) LIENS.—
(A) DEFINITIONS.—In this paragraph, the
terms ‘‘security interest’’ and ‘‘purchaser’’ have
the meanings given the terms in section
6323(h) of the Internal Revenue Code of 1986.
(B) LIENS.—A lien in favor of the grant
recipient shall arise on the contaminated prop-
erty subject to a loan under this section.
(C) COVERAGE.—The lien shall cover all
real property included in the legal description of
the property at the time the loan agreement
provided for in this section is signed, and all
rights to the property, and shall continue until
the terms and conditions of the loan agreement
have been fully satisfied.
(D) TIMING.—The lien shall—
(i) arise at the time a security interest
is appropriately recorded in the real prop-
erty records of the appropriate office of the
State, county, or other governmental sub-
division, as designated by State law, in
which the real property subject to the lien
is located; and
(ii) be subject to the rights of any
purchaser, holder of a security interest, or
judgment lien creditor whose interest is or
has been perfected under applicable State
law before the notice has been filed in the
appropriate office of the State, county, or
other governmental subdivision, as des-
ignated by State law, in which the real
property subject to the lien is located.
(7) OTHER CONDITIONS.—The State or local
government will comply with such other terms and
conditions as the Administrator determines are nec-
essary to protect the financial interests of the Unit-
ed States and to protect human health and the envi-
ronment.
(d) AUDITS.—
(1) IN
GENERAL.—The Inspector General of
the Environmental Protection Agency shall audit a
portion of the grants awarded under this section to
ensure that all funds are used for the purposes set
forth in this section.
(2) FUTURE GRANTS.—The result of the audit
shall be taken into account in awarding any future
grants to the State or local government.
SEC. 104. ECONOMIC REDEVELOPMENT GRANTS.
(a) EXPENDITURES
FROM
THE
SUPERFUND.—
Amounts in the Hazardous Substance Superfund estab-
lished by section 9507 of the Internal Revenue Code of
1986 shall be made available consistent with, and for the
purposes of carrying out, the grant programs established
under sections 102 and 103.
(b) AUTHORITY TO AWARD GRANTS.—There is au-
thorized to be appropriated from the Hazardous Sub-
stance Superfund for grants to State and local govern-
ments under sections 102 and 103, $40,000,000 for each
of fiscal years 1998 through 2002.
SEC. 105. REPORTS.
(a) IN GENERAL.—Not later than 1 year after the
date of enactment of this Act, and not later than January
31 of each of the 3 calendar years thereafter, the Adminis-
trator shall prepare and submit a report describing the
results of each program established under this title to—
(1) the Committee on Environment and Public
Works of the Senate; and
(2) the Committee on Commerce of the House
of Representatives.
(b) CONTENTS OF REPORT.—Each report shall, with
respect to each of the programs established under this
title, include a description of—
(1) the number of applications received by the
Administrator during the preceding calendar year;
(2) the number of applications approved by the
Administrator during the preceding calendar year;
and
(3) the allocation of assistance under sections
102 and 103 among the States and local govern-
ments.
SEC. 106. LIMITATIONS ON USE OF FUNDS.
(a) EXCLUDED FACILITIES.—A grant for site inven-
tory and assessment under section 102 or to capitalize a
revolving loan fund under section 103 may not be used
for any activity involving—
(1) a facility that is the subject of a planned or
an ongoing response action under the Comprehensive
Environmental Response, Compensation, and Liabil-
ity Act of 1980 (42 U.S.C. 9601 et seq.), except for
a facility for which a preliminary assessment, site in-
vestigation, or removal action has been completed
and with respect to which the Administrator has de-
cided not to take further response action, including
cost recovery action;
(2) a facility included, or proposed for inclu-
sion, on the National Priorities List maintained by
the Administrator under the Comprehensive Envi-
ronmental Response, Compensation, and Liability
Act of 1980 (42 U.S.C. 9601 et seq.);
(3) a facility with respect to which a record of
decision, other than a no-action record of decision,
has been issued by the President under section 104
of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9604) with respect to the facility;
(4) a facility that is subject to corrective action
under section 3004(u), 3008(h) of the Solid Waste
Disposal Act (42 U.S.C. 6924(u) or 6928(h)) to
which a corrective action permit or order has been
issued or modified to require the implementation of
corrective measures;
(5) any land disposal unit with respect to which
a closure notification under subtitle C of the Solid
Waste Disposal Act (42 U.S.C. 6921 et seq.) has
been submitted and closure requirements have been
specified in a closure plan or permit;
(6) a facility at which there has been a release
of a polychlorinated biphenyl and that is subject to
the Toxic Substances Control Act (15 U.S.C. 2601
et seq.);
(7) a facility with respect to which an adminis-
trative order on consent or a judicial consent decree
requiring cleanup has been entered into by the
President and is in effect under—
(A) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.);
(B) the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.);
(C) the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.);
(D) the Toxic Substances Control Act (15
U.S.C. 2601 et seq.); or
(E) the Safe Drinking Water Act (42
U.S.C. 300f et seq.);
(8) a facility at which assistance for response
activities may be obtained under subtitle I of the
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.)
from the Leaking Underground Storage Tank Trust
Fund established by section 9508 of the Internal
Revenue Code of 1986; and
(9) a facility owned or operated by a depart-
ment, agency, or instrumentality of the United
States, except for land held in trust by the United
States for an Indian tribe.
(b) FINES
AND COST-SHARING.—A grant made
under this title may not be used to pay any fine or penalty
owed to a State or the Federal Government, or to meet
any Federal cost-sharing requirement.
(c) OTHER LIMITATIONS.—
(1) IN GENERAL.—Funds made available to a
State or local government under the grant programs
established under sections 102 and 103 shall be used
only to inventory and assess brownfield sites as au-
thorized by this title and for capitalizing a revolving
loan fund as authorized by this title, respectively.
(2) RESPONSIBILITY FOR CLEANUP ACTION.—
Funds made available under this title may not be
used to relieve a local government or State of the
commitment or responsibilities of the local govern-
ment or State under State law to assist or carry out
cleanup actions at brownfield sites.
SEC. 107. EFFECT ON OTHER LAWS.
Nothing in this title affects the liability or response
authorities for environmental contamination under any
other law (including any regulation), including—
(1) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.);
(2) the Solid Waste Disposal Act (42 U.S.C.
6901 et seq.);
(3) the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.);
(4) the Toxic Substances Control Act (15
U.S.C. 2601 et seq.); and
(5) the Safe Drinking Water Act (42 U.S.C.
300f et seq.).
SEC. 108. REGULATIONS.
(a) IN GENERAL.—The Administrator may issue
such regulations as are necessary to carry out this title.
(b) PROCEDURES AND STANDARDS.—The regulations
shall include such procedures and standards as the Admin-
istrator considers necessary, including procedures and
standards for evaluating an application for a grant or loan
submitted under this title.
SEC. 109. AUTHORIZATIONS OF APPROPRIATIONS.
(a) SITE ASSESSMENT PROGRAM.—There is author-
ized to be appropriated to carry out section 102
$15,000,000 for each of fiscal years 1998 through 2002.
(b) ECONOMIC REDEVELOPMENT ASSISTANCE PRO-
GRAM.—There is authorized to be appropriated to carry
out section 103 $25,000,000 for each of fiscal years 1998
through 2002.
(c) AVAILABILITY OF FUNDS.—The amounts appro-
priated under this section shall remain available until ex-
pended.
TITLE II—PROSPECTIVE
PURCHASERS
SEC. 201. LIMITATIONS ON LIABILITY FOR RESPONSE
COSTS FOR PROSPECTIVE PURCHASERS.
(a) LIMITATIONS ON 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) LIMITATIONS ON LIABILITY FOR PROSPECTIVE
PURCHASERS.—Notwithstanding paragraphs (1) through
(4) of subsection (a), to the extent the liability of a person,
with respect to a release or the threat of a release from
a facility, is based solely on subsection (a)(1), the person
shall not be liable under this Act if the person—
‘‘(1) is a bona fide prospective purchaser of the
facility; and
‘‘(2) does not impede the performance of any
response action or natural resource restoration at a
facility.’’.
(b) PROSPECTIVE
PURCHASER
AND
WINDFALL
LIEN.—Section 107 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (as
amended by subsection (a)) is amended by inserting after
subsection (n) the following:
‘‘(o) PROSPECTIVE
PURCHASER
AND
WINDFALL
LIEN.—
‘‘(1) IN GENERAL.—In any case in which there
are unrecovered response costs at a facility for which
an owner of the facility is not liable by reason of
subsection (n), and the conditions described in para-
graph (3) are met, the United States shall have a
lien on the facility, or may obtain, from the appro-
priate responsible party or parties, a lien on other
property or other assurances of payment satisfactory
to the Administrator, for the unrecovered costs.
‘‘(2) AMOUNT; DURATION.—The lien—
‘‘(A) shall be for an amount not to exceed
the increase in fair market value of the prop-
erty attributable to the response action at the
time of a subsequent sale or other disposition
of the property;
‘‘(B) shall arise at the time costs are first
incurred by the United States with respect to a
response action at the facility;
‘‘(C) shall be subject to the requirements
for notice and validity specified in subsection
(l)(3); and
‘‘(D) shall continue until the earlier of sat-
isfaction of the lien or recovery of all response
costs incurred at the facility.
‘‘(3) CONDITIONS.—The conditions referred to
in paragraph (1) are the following:
‘‘(A) RESPONSE ACTION.—A response ac-
tion for which there are unrecovered costs is
carried out at the facility.
‘‘(B) FAIR MARKET VALUE.—The response
action increases the fair market value of the fa-
cility above the fair market value of the facility
that existed on the date that is 180 days before
the response action was commenced.’’.
(c) DEFINITION OF BONA FIDE PROSPECTIVE PUR-
CHASER.—Section 101 of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601) is amended by adding at the end
the following:
‘‘(39) BONA FIDE PROSPECTIVE PURCHASER.—
The term ‘bona fide prospective purchaser’ means a
person who acquires ownership of a facility after the
date of enactment of the Brownfields and Environ-
mental Cleanup Act of 1997, or a tenant of such a
person, who can establish each of the following by a
preponderance of the evidence:
‘‘(A) DISPOSAL PRIOR TO ACQUISITION.—
All active disposal of hazardous substances at
the facility occurred before the person acquired
the facility.
‘‘(B) INQUIRY.—
‘‘(i) IN GENERAL.—The person made
all appropriate inquiry into the previous
ownership and uses of the facility in ac-
cordance with generally accepted good
commercial and customary standards and
practices.
‘‘(ii) 
STANDARDS.—The 
standards
and practices issued by the Administrator
under paragraph (35)(B)(ii) shall satisfy
the requirements of this subparagraph.
‘‘(iii) RESIDENTIAL
PROPERTY.—In
the case of property in residential or other
similar use at the time of purchase by a
nongovernmental or noncommercial entity,
a site inspection and title search that re-
veal no basis for further investigation shall
satisfy the requirements of this subpara-
graph.
‘‘(C) NOTICES.—The person provided all
legally required notices with respect to the dis-
covery or release of any hazardous substances
at the facility.
‘‘(D) CARE.—The person exercised appro-
priate care with respect to hazardous sub-
stances found at the facility by taking reason-
able steps to—
‘‘(i) stop ongoing releases;
‘‘(ii) prevent threatened future re-
leases of hazardous substances; and
‘‘(iii) prevent or limit human or natu-
ral resource exposure to hazardous sub-
stances previously released into the envi-
ronment.
‘‘(E) COOPERATION, ASSISTANCE, AND AC-
CESS.—The person provides full cooperation,
assistance, and facility access to such persons
as are authorized to conduct response actions at
the facility, including the cooperation and ac-
cess necessary for the installation, integrity, op-
eration, and maintenance of any complete or
partial response action at the facility.
‘‘(F) RELATIONSHIP.—The person is not
liable, or is not affiliated with any other person
that is potentially liable, for response costs at
the facility, through any direct or indirect fa-
milial relationship, or any contractual, cor-
porate, or financial relationship other than that
created by the instruments by which title to the
facility is conveyed or financed.’’.
TITLE III—INNOCENT
LANDOWNERS
SEC. 301. INNOCENT LANDOWNERS.
(a) KNOWLEDGE OF INQUIRY REQUIREMENT.—Sec-
tion 101(35) of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601(35)) is amended by striking subparagraph
(B) and inserting the following:
‘‘(B) KNOWLEDGE OF INQUIRY REQUIRE-
MENT.—
‘‘(i) 
DEFINITION
OF
CONTAMINA-
TION.—In this subparagraph, the term
‘contamination’ means an existing release,
a past release, or the threat of a release of
a hazardous substance.
‘‘(ii) REQUIREMENT.—
‘‘(I) INQUIRY.—To establish that
the defendant had no reason to know
(under subparagraph (A)(i)), the de-
fendant must have made, at the time
of the acquisition, all appropriate in-
quiry (as well as comply with clause
(vii)) into the previous ownership and
uses of the facility, consistent with
good commercial or customary prac-
tice in an effort to minimize liability.
‘‘(II) CONSIDERATIONS.—For the
purpose of subclause (I) and until the
President issues or designates stand-
ards as provided in clause (iv), the
court shall take into account—
‘‘(aa) any specialized knowl-
edge or experience on the part of
the defendant;
‘‘(bb) the relationship of the
purchase price to the value of the
property if uncontaminated;
‘‘(cc) commonly known or
reasonably ascertainable informa-
tion about the property;
‘‘(dd) the obviousness of the
presence or likely presence of
contamination at the property;
and
‘‘(ee) the ability to detect
the contamination by appropriate
investigation.
‘‘(iii) CONDUCT OF ENVIRONMENTAL
ASSESSMENT.—A person who has acquired
real property shall be considered to have
made all appropriate inquiry within the
meaning of clause (ii)(I) if—
‘‘(I) the person establishes that,
within 180 days prior to the date of
acquisition, an environmental site as-
sessment of the real property was con-
ducted that meets the requirements of
clause (iv); and
‘‘(II) the person complies with
clause (vii).
‘‘(iv) ENVIRONMENTAL SITE ASSESS-
MENT.—
‘‘(I) IN GENERAL.—An environ-
mental site assessment meets the re-
quirements of this clause if the assess-
ment is conducted in accordance with
the standards set forth in the Amer-
ican Society for Testing and Materials
(ASTM) Standard E1527–94, titled
‘Standard Practice for Environmental
Site Assessments: Phase I Environ-
mental Site Assessment Process’ or
with any alternative standards issued
by regulation by the President or is-
sued or developed by other entities
and designated by regulation by the
President.
‘‘(II) STUDY
OF
PRACTICES.—
Before issuing or designating alter-
native standards under subclause (I),
the President shall conduct a study of
commercial and industrial practices
concerning environmental site assess-
ments in the transfer of real property
in the United States.
‘‘(v) CONSIDERATIONS
IN
ISSUING
STANDARDS.—In issuing or designating
any standards under clause (iv), the Presi-
dent shall consider requirements governing
each of the following:
‘‘(I) Conduct of an inquiry by an
environmental professional.
‘‘(II) Interviews of each owner,
operator, and occupant of the prop-
erty to determine information regard-
ing the potential for contamination.
‘‘(III) 
Review 
of 
historical
sources as necessary to determine
each previous use and occupancy of
the property since the property was
first developed. In this subclause, the
term ‘historical sources’ means any of
the following, if reasonably ascertain-
able: each recorded chain of title doc-
ument regarding the real property, in-
cluding each deed, easement, lease, re-
striction, and covenant, any aerial
photograph, fire insurance map, prop-
erty tax file, United States Geological
Survey 7.5 minutes topographic map,
local street directory, building depart-
ment record, and zoning/land use
record, and any other source that
identifies a past use or occupancy of
the property.
‘‘(IV) Determination of the exist-
ence of any recorded environmental
cleanup lien against the real property
that has arisen under any Federal,
State, or local law.
‘‘(V) Review of reasonably ascer-
tainable Federal, State, and local gov-
ernment records of any facility that is
likely to cause or contribute to con-
tamination at the real property, in-
cluding, as appropriate—
‘‘(aa) any investigation re-
port for the facility;
‘‘(bb) any record of activities
likely to cause or contribute to
contamination at the real prop-
erty, including any landfill or
other disposal location record,
underground storage tank record,
hazardous waste handler and
generator record, and spill re-
porting record; and
‘‘(cc) any other reasonably
ascertainable Federal, State, and
local government environmental
record that could reflect an inci-
dent or activity that is likely to
cause or contribute to contamina-
tion at the real property.
‘‘(VI) A visual site inspection of
the real property and each facility and
improvement on the real property and
a visual site inspection of each imme-
diately adjacent property, including an
investigation of any hazardous sub-
stance use, storage, treatment, or dis-
posal practice on the property.
‘‘(VII) Any specialized knowledge
or experience on the part of the per-
son that acquired the property.
‘‘(VIII) The relationship of the
purchase price to the value of the
property if uncontaminated.
‘‘(IX) Commonly known or rea-
sonably 
ascertainable 
information
about the property.
‘‘(X) The obviousness of the
presence or likely presence of contami-
nation at the property, and the ability
to detect the contamination by appro-
priate investigation.
‘‘(vi) 
REASONABLY
ASCERTAIN-
ABLE.—A record shall be considered to be
reasonably ascertainable for purposes of
clause (v) if a copy or reasonable facsimile
of the record is publicly available by re-
quest (within reasonable time and cost con-
straints) and the record is practicably
reviewable.
‘‘(vii) APPROPRIATE INQUIRY.—A per-
son shall not be treated as having made all
appropriate inquiry under clause (ii)(I) un-
less—
‘‘(I) the person has maintained a
compilation of the information re-
viewed and gathered in the course of
any environmental site assessment;
‘‘(II) the person exercised appro-
priate care with respect to hazardous
substances found at the facility by
taking reasonable steps to—
‘‘(aa) stop ongoing releases
of hazardous substances;
‘‘(bb) prevent threatened fu-
ture releases of hazardous sub-
stances; and
‘‘(cc) prevent or limit human
or natural resource exposure to
hazardous substances previously
released into the environment;
and
‘‘(III) the person provides full co-
operation, assistance, and facility ac-
cess to such persons as are authorized
to conduct response actions at the fa-
cility, including the cooperation and
access necessary for the installation,
integrity, operation, and maintenance
of any complete or partial response
action at the facility.
‘‘(viii) SITE INSPECTION AND TITLE
SEARCH.—In the case of property for resi-
dential use or other similar use purchased
by a nongovernmental or noncommercial
entity, a site inspection and title search
that reveal no basis for further investiga-
tion shall satisfy the requirements of
clause (ii).’’.
(b) REGULATORY AUTHORITY.—
(1) IN
GENERAL.—The Administrator of the
Environmental Protection Agency may—
(A) issue such regulations as the Adminis-
trator considers necessary to carry out the
amendment made by this section; and
(B) delegate and assign any duties or pow-
ers imposed on or assigned to the Adminis-
trator by the amendment made by this section,
including the authority to issue regulations.
(2) AUTHORITY
TO
CLARIFY
AND
IMPLE-
MENT.—The authority under paragraph (1) includes
authority to clarify or interpret all terms, including
the terms used in this section, and to implement any
provision of the amendment made by this section.
Æ