dent to carry out the requirements of this sub-
section.
‘‘(4) NOTICE.—Notice of the settlement shall be
published as provided in subsection (i). The notice
shall provide a general description of the contents of
the agreement. Any interested person may comment
on whether the applicant is a qualified business, in
writing, to the President. The President may with-
draw from a settlement after considering the com-
ments.
‘‘(5) DECISION
OF
NONQUALIFICATION; AP-
PEAL.—
‘‘(A) DECISION OF NONQUALIFICATION.—
If the President determines that the business
does not qualify for a settlement under this
subsection, the President shall notify the appli-
cant, in writing, within 90 days of the receipt
of all information required under paragraph (2)
stating the reasons for denial. If the President
does not notify the applicant within 90 days,
the application is deemed denied.
‘‘(B) APPEAL.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of this Act, a denial of
settlement under this subsection may be
appealed.
‘‘(ii) AUTHORITY OF ENVIRONMENTAL
APPEALS BOARD.—The Environmental Ap-
peals Board of the Environmental Protec-
tion Agency is authorized to adjudicate de-
nials of settlement under this subsection.
Within 60 days of the date on which notice
of denial is received, a denial of settlement
may be appealed to the Board. The Board
may consider whether the President has
followed the provisions of this Act but shall
not determine questions regarding liability.
‘‘(iii) PROCEDURAL
RULES.—In any
appeal made pursuant to this subpara-
graph, the documents submitted by the ap-
plicant under paragraph (2) are not con-
fidential. If an applicant agrees not to con-
test the share of liability under section 107
assigned by the President, the appeal shall
include only a determination of the appli-
cant’s ability to pay its allocated share.
‘‘(6) JUDICIAL PROCEDURES.—In reviewing a
proposed settlement under this subsection, a United
States district court shall give deference to the
President’s determination that the settlement is in
the public interest and meets applicable legal stand-
ards for court approval. Any person who challenges
a proposed settlement bears the burden of proving
that the proposed settlement does not meet applica-
ble legal standards for court approval. If a settle-
ment is reached with an applicant, the confidential
information supplied to the President under this
subsection may be submitted under seal to the court
for in camera review.
‘‘(7) GROSS INCOME DETERMINATION.—In de-
termining the applicant’s gross income for purposes
of this subsection, the income of all concerns in
which the applicant maintains ownership, control, or
management may be considered by the President.
‘‘(8) REGULATIONS.—The President may issue
regulations to implement this subsection.
‘‘(9) LIMITATION
ON
EFFECT
OF
SETTLE-
MENT.—A settlement under this subsection applies
only to the applicant for the settlement and does not
release or affect in any way the liability of any other
person.
‘‘(10) LIMITATION ON LIEN.—If a settlement is
made pursuant to this subsection, the President
shall not file a lien under section 107 for an amount
greater than the settlement.
‘‘(11) MODIFICATION
OF
PAYMENT
SCHED-
ULE.—Upon the filing of a petition by an applicant
for modification of a payment schedule agreed to
under paragraph (3)(A), the President may modify
the payment schedule.
‘‘(12) QUALIFIED BUSINESS DEFINED.—In this
subsection, the term ‘qualified business’ means an
applicant under this subsection whose gross income
as defined by section 61 of the Internal Revenue
Code of 1986 is less than $3,000,000 per year for
the average of the 2 years preceding the year that
an investigation of the applicant’s share was initi-
ated by the President or the Administrator of the
Environmental Protection Agency, and for each of
the 2 years preceding the year that the request is
submitted by the applicant under paragraph (2).
‘‘(o) FINANCIAL HARDSHIP SETTLEMENT.—
‘‘(1) CONSIDERATION OF OFFER.—The Presi-
dent shall consider any offer of settlement by a per-
son who is potentially liable for remedial action costs
under section 107, without regard to the extent of
that person’s liability, if the person demonstrates
that payment of the amount for which the person is
liable under section 107 would be a financial hard-
ship. A person whose liability under section 107
arose from criminal acts is not eligible to request a
settlement under this section. In considering a per-
son’s ability to pay, the President shall consider all
of the following:
‘‘(A) The financial resources of the person,
including available insurance.
‘‘(B) The person’s ability to continue in
business after payment of the settlement
amount.
‘‘(C) Whether liability for the settlement
amount would require the person to seek pro-
tection under Federal bankruptcy laws.
‘‘(2) APPLICATION.—
‘‘(A) CONTENTS.—An applicant seeking
settlement under this subsection shall submit a
letter to the President requesting a financial
hardship settlement on a form provided by the
President. The request letter shall include the
applicant’s tax returns and all schedules, finan-
cial statements, balance statements, and other
information concerning the person’s gross in-
come and net worth for the 5 years preceding
the date of the application on a form provided
by the President.
‘‘(B) ADDITIONAL INFORMATION.—Within
90 days of the application, the President may
require additional information to verify the ap-
plicant’s eligibility for settlement under this
section. The applicant may provide any addi-
tional information the applicant believes to be
relevant.
‘‘(C) CONFIDENTIAL
INFORMATION.—Fi-
nancial information submitted by the applicant
pursuant to this section and marked ‘confiden-
tial’ shall be kept confidential by the President.
If the President or the Attorney General dis-
putes a claim of confidentiality, written notice
shall be provided to the person claiming the
confidentiality that the claim is disputed. If the
person claiming the confidentiality does not file
a court action for declaratory relief within 30
days after receiving this notice, the information
shall be made available to the public.
‘‘(3) SETTLEMENT AGREEMENT.—
‘‘(A) IN
GENERAL.—If the President
verifies that payment by the applicant of the
amount for which the applicant is liable under
‘‘(A) NOTICE.—Notice of the settlement
shall be published as provided in subsection (i).
The notice shall provide a general description of
the contents of the agreement.
‘‘(B) COMMENTS.—Any interested person
may comment on whether the applicant quali-
fies for a settlement pursuant to this section in
writing to the President. The President may
withdraw from a settlement after considering
the comments.
‘‘(6) DECISION
OF
NONQUALIFICATION; AP-
PEAL.—
‘‘(A) DECISION OF NONQUALIFICATION.—
If the President determines that the applicant
does not qualify for a settlement pursuant to
this subsection, the President shall notify the
applicant in writing within 90 days for the re-
ceipt of all information required under para-
graph (2) stating the reasons. If the President
does not notify the applicant within 90 days,
the application is deemed denied.
‘‘(B) APPEAL.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of this Act, a denial of
settlement under this subsection may be
appealed.
‘‘(ii) AUTHORITY OF ENVIRONMENTAL
APPEALS BOARD.—The Environmental Ap-
peals Board of the Environmental Protec-
tion Agency is authorized to adjudicate de-
nials of settlement under this subsection.
Within 60 days of the date on which notice
of denial is received, a denial of settlement
may be appealed to the Board. The Board
may consider whether the President has
followed the provisions of this Act but shall
not determine questions regarding liability.
‘‘(iii) PROCEDURAL
RULES.—In any
appeal made pursuant to this subpara-
graph, the documents submitted by the ap-
plicant under paragraph (2) are not con-
fidential. The appeal shall determine only
the amount which the applicant is able to
pay.
‘‘(7) JUDICIAL PROCEDURES.—In reviewing a
proposed settlement, the Federal district court shall
give deference to the President’s determination that
the settlement is in the public interest and meets ap-
plicable legal standards for court approval. Any per-
son challenging a proposed settlement shall bear the
burden of proving that the proposed settlement does
not meet the applicable legal standards for court ap-
proval. If a settlement is reached with an applicant,
the confidential information supplied to the Presi-
dent under this subsection may be submitted under
seal to the court for in camera review.
‘‘(8) 
DETERMINATION
OF
FINANCIAL
RE-
SOURCES.—In determining the applicant’s financial
resources, the financial resources of all concerns in
which the applicant maintains ownership, control, or
management may be considered by the President. A
settlement under this subsection applies only to the
applicant and does not release or affect in any way
the liability of any other person. The President may
adopt rules to implement this subsection.
‘‘(9) FILING OF LIEN.—If a settlement is made
pursuant to this subsection, the President shall not
file a lien pursuant to section 107 for an amount
greater than the settlement.’’.
SEC. 3. CONTIGUOUS PROPERTIES.
(a) IN GENERAL.—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:
‘‘(o) CONTIGUOUS PROPERTIES.—
‘‘(1) NOT CONSIDERED TO BE AN OWNER OR
OPERATOR.—
‘‘(A) IN GENERAL.—A person that owns or
operates real property that is contiguous to or
otherwise similarly situated with respect to real
property on which there has been a release or
threatened release of a hazardous substance
and that is or may be contaminated by the re-
lease shall not be considered to be an owner or
operator of a vessel or facility under paragraph
(1) or (2) of subsection (a) solely by reason of
the contamination if—
‘‘(i) the person did not cause, con-
tribute, or consent to the release or threat-
ened release;
‘‘(ii) the person is not affiliated
through any familial or corporate relation-
ship with any person that is or was a party
potentially responsible for response costs at
the facility;
‘‘(iii) the person exercised appropriate
care with respect to each hazardous sub-
stance found at the facility by taking rea-
sonable steps to stop any continuing re-
lease, prevent any threatened future re-
lease and prevent or limit human or nat-
ural resource exposure to any previously
released hazardous substance;
‘‘(iv) the person provides full coopera-
tion, assistance, and access to persons that
are responsible for response actions at the
vessel or facility from which there has been
a release or threatened release, including
the cooperation and access necessary for
the installation, integrity, operation, and
maintenance of any complete or partial re-
sponse actions at the vessel or facility;
‘‘(v) the person does not impede the
effectiveness or integrity of any institu-
tional control employed at the vessel or fa-
cility; and
‘‘(vi) the person complies with any re-
quest for information or administrative
subpoena issued by the President under
this Act.
‘‘(B) GROUND
WATER.—With respect to
hazardous substances in ground water beneath
a person’s property solely as a result of sub-
surface migration in an aquifer from a source
or sources outside the property, appropriate
care shall not require the person to conduct
ground water investigations or to install ground
water remediation systems.
‘‘(2) ASSURANCES.—The Administrator may—
‘‘(A) issue an assurance that no enforce-
ment action under this Act will be initiated
against a person described in paragraph (1);
and
‘‘(B) grant a person described in para-
graph (1) protection against a cost recovery or
contribution action under section 113(f).’’.
(b) NATIONAL PRIORITIES LIST.—
(1) IN GENERAL.—Section 105(a)(8) of such
Act (42 U.S.C. 9605(a)(8)) is amended—
(A) in subparagraph (B) by inserting
‘‘and’’ after the semicolon at the end; and
(B) by adding at the end the following:
‘‘(C) provision that in listing a facility on the
National Priorities List, the Administrator shall not
include any parcel of real property at which no re-
lease has actually occurred, but to which a released
hazardous substance, pollutant, or contaminant has
migrated in ground water that has moved through
subsurface strata from another parcel of real estate
at which the release actually occurred, unless—
‘‘(i) the ground water is in use as a public
drinking water supply or was in such use at the
time of the release; and
‘‘(ii) the owner or operator of the facility
is liable, or is affiliated with any other person
that is liable, for any response costs at the fa-
cility, through any direct or indirect familial re-
lationship, or any contractual, corporate, or fi-
nancial relationship other than that created by
the instruments by which title to the facility is
conveyed or financed.’’.
(2) LISTING OF PARTICULAR PARCELS.—Sec-
tion 105 of such Act is further amended by adding
at the end the following:
‘‘(h) LISTING OF PARTICULAR PARCELS.—
‘‘(1) DEFINITION.—In subsection (a)(8)(C) and
paragraph (2) of this subsection, the term ‘parcel of
real property’ means a parcel, lot, or tract of land
that has a separate legal description from that of
any other parcel, lot, or tract of land the legal de-
scription and ownership of which has been recorded
in accordance with the law of the State in which it
is located.
‘‘(2) STATUTORY CONSTRUCTION.—Nothing in
subsection (a)(8)(C) limits the Administrator’s au-
thority under section 104 to obtain access to and
undertake response actions at any parcel of real
property to which a released hazardous substance,
pollutant, or contaminant has migrated in the
ground water.’’.
(3) REVISION OF NATIONAL PRIORITIES LIST.—
(A) IN GENERAL.—The President shall an-
nually revise the National Priorities List to con-
form with the amendments made by paragraphs
(1) and (2), based on individual delisting rec-
ommendations made by each Regional Adminis-
trator of the Environmental Protection Agency.
(B) DELISTED
PARCELS.—In complying
with this paragraph, the President shall delist
not more than 20 individual parcels of real
property from the National Priorities List in
any 1 calendar year.
(c) CONFORMING AMENDMENT.—Section 107(a) of
such Act (42 U.S.C. 9607(a)) is amended by striking ‘‘of
this section’’ and inserting ‘‘and the exemptions and limi-
tations stated in this section’’.
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