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ney’s fees, costs of suit, consultant
and expert fees and costs, and ex-
penses for testing and monitoring).
(iv) LIMIT ON ELIGIBLE COSTS.—
(I) 
Except 
as 
provided 
in
subclause (II), the eligible costs of an
eligible person may not exceed—
(aa) $15,000,000 in the case
of an eligible person that has
demonstrated insurance coverage
pursuant 
to 
subparagraph
(A)(ii)(I); or
(bb) an amount equal to
one-seventh of $15,000,000 for
each year of insurance coverage,
in the case of an eligible person
that has demonstrated insurance
coverage pursuant that has dem-
onstrated 
insurance 
coverage
pursuant 
to 
subparagraph
(A)(ii)(II).
(II) The limitation on eligible
costs provided in subclause (I) shall
not apply to an eligible costs provided
in subclause (I) shall not apply to an
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eligible person that, when filing a re-
quest for a resolution offer with the
Resolution Fund, presents evidence to
the satisfaction of the Resolution
Fund that the limits on valid con-
tracts of insurance (including per oc-
currence, aggregate, primary, excess
or other limits) of such eligible person
prior to January 1, 1986, cumula-
tively exceed the amount determined
pursuant to subclause (I) without ref-
erence to any time period. For pur-
poses of this clause, a valid contract
for insurance shall not include any
contract for insurance with respect to
which an eligible person has entered
into a settlement with an insurer pro-
viding, or where a judgment has pro-
vided, that the contract has been sat-
isfied and that such eligible person
has no right to make any further
claims under such contract.
(C) ELIGIBLE SITE.—For purposes of this
subsection, the term ‘‘eligible site’’ means—
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(i) any site or facility placed on the
National Priority List at any time, at
which a hazardous substance was disposed
of on or before December 31, 1985; or
(ii) any site or facility subject to a re-
moval (as defined in section 101(23) of the
Act (42 U.S.C. 9601(23)) conducted pur-
suant to such Act at any time, at which a
hazardous substance was disposed of on or
before December 31, 1985.
For purposes of this subparagraph, the term
‘‘facility’’ shall have the same meaning as pro-
vided in section 101(9) of the Comprehensive
Environmental Response, Compensation and Li-
ability Act (42 U.S.C. 9601(9)).
(D) STATE.—For purposes of this sub-
section, the term ‘‘State’’ shall have the same
meaning as provided in section 101(27) of the
Comprehensive Environmental Response, Com-
pensation 
and 
Liability 
Act 
(42 
U.S.C.
9601(27)).
(3) RESOLUTION OFFERS.—
(A) IN GENERAL.—The Resolution Fund
shall offer one comprehensive resolution to each
eligible person. The offer shall—
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(i) be for a percentage of all the eligi-
ble costs of such eligible person incurred in
connection with all eligible sites, deter-
mined pursuant to paragraph (4); and
(ii) state the limitation on eligible
costs, if any, applicable to the eligible per-
son pursuant to paragraph (2)(B)(ii).
(B) REQUESTS
FOR
RESOLUTION
OF-
FERS.—An eligible person shall file a request
for resolution from the Resolution Fund in such
form and manner as the Resolution Fund shall
prescribe. No such request shall be deemed re-
ceived by the Resolution Fund before the date
final regulations concerning State percentage
categories are published in the Federal Register
pursuant to paragraph 4(B)(iii). The Resolu-
tion Fund shall make an offer of resolution, de-
termined pursuant to paragraph (4), to each el-
igible person that has filed a request for an
offer of resolution not later than 180 days after
the receipt of a complete request as determined
by the Resolution Fund.
(C) REVIEW
OF
RESOLUTION
OFFERS.—
No resolution offer made by the Resolution
Fund shall be subject to review by any court.
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(4) DETERMINATION
OF
RESOLUTION
OF-
FERS.—
(A) IN GENERAL.—The Resolution Fund
shall determine a resolution offer—
(i) in the case of an eligible person
that has established only one State litiga-
tion venue pursuant to subparagraph (C),
by applying the State percentage deter-
mined pursuant to subparagraph (B)(iii) to
the established State litigation venue;
(ii) in the case of an eligible person
that has established two or more State liti-
gation venues pursuant to subparagraph
(C), each site with respect to which a State
litigation venue has been established shall
be accorded equal value and the applicable
percentage shall be the weighted average of
all established State litigation venues; or
(iii) in the case of an eligible person
that has not established any State litiga-
tion venue pursuant to subparagraph
(C)—
(I) if the eligible person has po-
tential liability in connection with only
one hazardous waste site, by applying
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the State percentage determined pur-
suant to subparagraph (B)(iii) to the
State in which the site is located; or
(II) if the eligible person has po-
tential liability in connection with
more than one hazardous waste site,
each site shall be accorded equal value
and the applicable percentage shall be
the weighted average of all States in
which the sites are located.
(B) STATE PERCENTAGE.—
(i) IN GENERAL.—The Congress finds
that as of January 1, 1994, State law gen-
erally is more favorable to eligible persons
that pursue claims concerning eligible costs
against insurers in some States, that State
law generally is more favorable to insurers
with respect to such claims in some States,
and that in some States the law generally
favors neither insurers nor eligible persons
with respect to such claims or that there is
insufficient 
information 
to 
determine
whether such law generally favors insurers
or eligible persons with respect to such
claims. The Congress further finds that
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considerations of equity and fairness re-
quire that resolution offers made by the
Resolution Fund must vary to reflect the
relative state of the law among the several
States.
(ii) PROPOSED
REGULATIONS.—The
Resolution Fund shall examine the law in
each State as of January 1, 1994. Not
later than 120 days after the date of en-
actment of this title, the Resolution Fund
shall publish in the Federal Register a no-
tice of proposed rulemaking soliciting pub-
lic comment for 60 days and classifying
States into the following percentage cat-
egories:
(I) 20 percent, in the case of the
ten States in which the Resolution
Fund determines that State law gen-
erally is most favorable to insurers
relative to the other States.
(II) 60 percent, in the case of the
ten States in which the Resolution
Fund determines that State law gen-
erally is most favorable to eligible per-
sons relative to the other States.
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(III) 40 percent, in the case of
all other States.
(iii) FINAL REGULATIONS.—
(I) Not later than 60 days after
the close of the public comment pe-
riod, the Resolution Fund shall pub-
lish in the Federal Register final reg-
ulations providing State classifica-
tions.
(II) The State classifications pro-
vided in the final rule shall govern all
resolution offers made by the Resolu-
tion Fund and shall not be subject to
amendment by the Resolution Fund.
(III) Notwithstanding any other
provision of law, the final regulations
promulgated by the Resolution Fund
pursuant to this clause shall not be
subject to review by any court.
(C) LITIGATION VENUE.—For purposes of
this subsection, litigation venue is considered
established with respect to an eligible person
if—
(i) on or before December 31, 1993,
the eligible person had pending in a court
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of competent jurisdiction a complaint or
cross complaint against an insurer with re-
spect to eligible costs at an eligible site;
and
(ii) no motion to change venue with
respect to such complaint was pending on
or before January 31, 1994.
(5) ACCEPTANCE OR REJECTION OF RESOLU-
TION OFFER.—
(A) IN GENERAL.—
(i) An eligible person may, when sub-
mitting a request for a resolution to the
Resolution Fund, make a written irrev-
ocable election to accept any resolution to
be made by the Resolution Fund.
(ii) An eligible person that does not
make an election pursuant to clause (i)
shall, within 60 days of the receipt of a
resolution offer from the Resolution Fund,
notify the Resolution Fund in writing of its
irrevocable acceptance or rejection of such
offer. An eligible person who does not so
accept or reject a resolution offer within
60 days shall be deemed to have made an
irrevocable election to reject the offer and
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the provisions of subparagraph (C) shall
apply.
(B) RESOLUTION OFFER ACCEPTED.—An
eligible person that accepts a resolution offered
by the Resolution Fund shall be subject to the
provisions of this paragraph.
(i) WAIVER OF INSURANCE CLAIMS.—
The Resolution Fund shall not make pay-
ments to an eligible person unless the eligi-
ble person agrees in writing, subject to re-
instatement described in clause (ii)—
(I) to waive any existing and fu-
ture claims against any insurer for eli-
gible costs; and
(II) to stay or dismiss each claim
pending against an insurer for eligible
costs.
(ii) REINSTATEMENT OF INSURANCE
CLAIMS.—
(I) If the Resolution Fund fails
to timely fulfill its obligations to an
eligible person under the terms of an
accepted resolution offer, such eligible
person shall be entitled to reinstate
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any claim under a contract for insur-
ance with respect to eligible costs.
(II) STATUTE
OF
LIMITATION
TOLLED.—Notwithstanding any other
provision of Federal or State law, any
Federal or State statute of limitation
concerning the filing or prosecution of
an action by an eligible person against
an insurer, or by an insurer against
an eligible person, with respect to eli-
gible costs shall be tolled during the
pendency of the stay of pending litiga-
tion established by section 804(a).
(iii) PAYMENT
OF
RESOLUTION
OF-
FERS.—
(I) PRE-RESOLUTION
COSTS.—
The Resolution Fund shall make
equal annual payments over a period
of eight years for eligible costs in-
curred by an eligible person on or be-
fore the date such person accepts a
resolution offer pursuant to subpara-
graph (A) (i) or (ii), and interest shall
not accrue with respect to such eligi-
ble costs. The Resolution Fund may,
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in its sole discretion, make such pay-
ments over a shorter period if the ag-
gregate eligible costs do not exceed
$50,000. An eligible person shall sub-
mit to the Resolution Fund docu-
mentation of such costs as the Resolu-
tion Fund may require. The initial
payment to an eligible person under
this subclause shall be made not later
than 60 days after the receipt of doc-
umentation satisfactory to the Resolu-
tion Fund.
(II) POST-RESOLUTION COSTS.—
The Resolution Fund shall make pay-
ments for eligible costs incurred by an
eligible person after the date such per-
son accepts a resolution offer pursu-
ant to subparagraph (A) (i) or (ii) to
the eligible person, or to a contractor
or other person designated by the eli-
gible person, subject to such docu-
mentation as the Resolution Fund
may require. Payments under this
subclause shall be made not later than
60 days after the receipt of docu-
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mentation satisfactory to the Resolu-
tion Fund.
(III) ADJUSTMENT FOR DEDUCT-
IBLE
OR
SELF
INSURANCE.—In the
case of an eligible person that has
submitted to the Resolution Fund, as
proof of status as an eligible person,
a contract for insurance described in
paragraph (2)(A)(ii) that is subject to
a self-insured retention or a deduct-
ible, payment to such eligible person
pursuant to a resolution shall be re-
duced by the amount of such self-in-
sured retention or deductible, except
that such reduction shall not exceed
the amount of one self-insured reten-
tion or one deductible that the eligible
person would have required to pay
with respect to one claim for eligible
costs under the terms of the contracts
for insurance submitted. In the event
that the eligible person submitted
more than one contract for insurance,
any such reduction shall be made with
respect to the lowest of the amounts
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of 
self-insured 
retentions 
and
deductibles.
(IV) ADJUSTMENT FOR CERTAIN
DUTY-TO-DEFEND
COSTS.—If an in-
surer has incurred and paid costs pur-
suant to a duty-to-defend clause con-
tained in a contract for insurance de-
scribed in paragraph (2)(B), and such
costs are the subject of a dispute be-
tween the eligible person and an in-
surer, the payment of a resolution to
an eligible person shall be reduced by
such amount, and the Resolution
Fund shall pay such amount to the
insurer. If such costs were paid by the
insurer on or before the date the eligi-
ble person accepted a resolution offer
made by the Resolution Fund, pay-
ment 
to 
an 
insurer 
under 
this
subclause shall be made in equal an-
nual installments over a period of
eight years, and interest shall not ac-
crue with respect to such costs. The
Resolution Fund may, in its sole dis-
cretion, make such payments over a
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shorter period if the aggregate costs
do not exceed $50,000.
(C) RESOLUTION OFFER REJECTED; LITI-
GATION OF INSURANCE CLAIMS.—
(i) ADMISSIBILITY
OF
RESOLUTION
OFFER.—No resolution offered by the Res-
olution Fund shall be admissible in any
legal action brought by an eligible person
against an insurer or by an insurer against
an eligible person.
(ii) INSURER ACTION AGAINST ELIGI-
BLE PERSON.—Any eligible person that re-
jects a resolution offer, litigates a claim
with respect to eligible costs against an in-
surer, and obtains a final judgment that is
less favorable than the resolution offered
by the Resolution Fund, shall be liable to
such insurer for 20 percent of the reason-
able costs and legal fees incurred by the
insurer in connection with such litigation
after the resolution was offered to the eli-
gible person. The district courts of the
United States shall have original jurisdic-
tion of all such actions, without regard to
amount or value. The court shall reduce
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any award to an insurer in any such action
by the amount, if any, of such costs and
legal fees recovered by the insurer pursu-
ant to State law or court rule. Nothing in
this clause shall be construed to limit or
affect in any way the application of State
law, or the rule of any court, to such costs
or legal fees.
(iii) REIMBURSEMENT TO INSURER.—
In the case of an eligible person that re-
jects a resolution offer, litigates a claim
with respect to eligible costs against one or
more insurers, and obtains a final judg-
ment against any such insurer, the Resolu-
tion Fund—
(I) shall reimburse to such in-
surer or insurers the lesser of the
amount of the resolution offer made
to the eligible person or the final
judgment; and
(II) may, if the resolution offer
exceeded the final judgment, reim-
burse the insurer or insurers for unre-
covered reasonable costs and legal
fees, except that the total reimburse-
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ment under this subclause may not
exceed the amount of the resolution
offer to the eligible person.
Reimbursements pursuant to this clause
shall be subject to such documentation as
the Resolution Fund may require and shall
be made by the Resolution Fund not later
than 60 days after receipt by the Resolu-
tion Fund of a complete request for reim-
bursement as determined by the Resolution
Fund.
(6) PAYMENTS CONSIDERED PURSUANT TO IN-
SURANCE CONTRACT.—Payments made by the Reso-
lution Fund pursuant to a resolution offer shall be
deemed payments made by an insurer under the
terms and conditions of a contract of insurance or
in settlement thereof. Nothing in this paragraph
shall be construed to affect in any way the issue of
whether the liability limits of a contract of insurance
has been satisfied.
(7) RESOLUTION PROCESS NOT ADMISSION OF
LIABILITY.—No provision of this title, and no action
by an eligible person undertaken in connection with
any provision of this title shall in any way constitute
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an admission of liability in connection with the dis-
posal of a hazardous substance.
(8) REGULATIONS.—
(A) 
PROCEDURES
AND
DOCUMENTA-
TION.—Not later than 120 days after the date
of enactment of this title, the Resolution Fund
shall publish in the Federal Register for public
comment of not more than 60 days interim
final regulations concerning procedures and
documentation for the submission of requests
for resolution offers and the payment of accept-
ed resolution offers. Not later than 60 days
after the close of the public comment period,
the Resolution Fund shall publish in the Fed-
eral Register final regulations concerning such
procedures and documentation, which may be
amended by the Resolution Fund from time to
time.
(B) OTHER
REGULATIONS.—The Resolu-
tion Fund may prescribe such other regulations,
rules and procedures as the Resolution Fund
deems appropriate from time to time.
(C) JUDICIAL
REVIEW.—No regulation,
rule or procedure prescribed by the Resolution
Fund pursuant to this paragraph shall be sub-
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ject to review by any court except to the extent
such regulation, rule or procedure is not con-
sistent with a provision of this title.
(h) JURISDICTION OF FEDERAL COURTS.—Notwith-
standing section 1349 of title 28, United States Code:
(1) The Resolution Fund shall be deemed to be
an agency of the United States for purposes of sec-
tions 1345 and 1442 of title 28, United States Code.
(2) All civil actions to which the Resolution
Fund is a party shall be deemed to arise under the
laws of the United States, and the district courts of
the United States shall have original jurisdiction of
all such actions, without regard to amount or value.
(3) Any civil or other action, case or con-
troversy in a court of a State, or in any court other
than a district court of the United States, to which
the Resolution Fund is a party may at any time be-
fore the trial thereof be removed by the Resolution
Fund, without the giving of any bond or security, to
the district court of the United States for the dis-
trict and division embracing the place where the
same is pending, or, if there is no such district
court, to the district court of the United States for
the district in which the principal office of the Reso-
lution Fund is located, by following any procedure
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for removal of causes in effect at the time of such
removal.
(4) No attachment or execution shall be issued
against the Resolution Fund or any of its property
before final judgment in any State, Federal, or other
court.
(i) REPORTS.—
(1) ANNUAL REPORTS.—The Resolution Fund
shall report annually to the President and the Con-
gress not later than January 15 of each year on its
activities for the prior fiscal year. The report shall
include—
(A) a financial statement audited by an
independent auditor; and
(B) a determination of whether the fees
and assessments imposed by section ll of the
Internal Revenue Code of 1986 will be suffi-
cient to meet the anticipated obligations of the
Resolution Fund.
(2) SPECIAL REPORTS.—The Resolution Fund
shall promptly report to the President and the Con-
gress at any time the Resolution Fund determines
that the fees and assessments imposed by section
ll of the Internal Revenue Code of 1986 will be
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HR 3800 IH1S
insufficient to meet the anticipated obligations of the
Resolution Fund.
(j) FALSE
OR
FRAUDULENT
STATEMENTS
OR
CLAIMS.—
(1) CRIMINAL PENALTIES.—
(A) For purposes of section 287 of title 18,
United States Code (relating to false claims),
the Resolution Fund shall be considered an
agency of the United States and any officer or
employee of the Resolution Fund shall be con-
sidered a person in the civil service of the
United States.
(B) For purposes of section 1001 of title
18, United States Code (relating to false state-
ments or entries), the Resolution Fund shall be
considered an agency of the United States.
(2) CIVIL PENALTIES.—Officers and employees
of the Resolution Fund shall be considered officers
and employees of the United States for purposes of
section 3729 of title 31, United States Code (relat-
ing to false claims).
SEC. 803. FINANCIAL STATEMENTS, AUDITS, INVESTIGA-
TIONS AND INSPECTIONS.
(a) IN GENERAL.—The financial statements of the
Resolution Fund shall be prepared in accordance with gen-
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HR 3800 IH1S
erally accepted accounting principles and shall be audited
annually by an independent certified public account in ac-
cordance with the auditing standards issued by the Comp-
troller General. Such auditing standards shall be consist-
ent with the private sector’s generally accepted auditing
standards.
(b) INVESTIGATIONS AND OTHER AUDITS.—The In-
spector General of the Environmental Protection Agency
is authorized to conduct audits and investigations as the
Inspector General deems necessary or appropriate. For
purposes of the preceding sentence, the provisions of the
Inspector General Act of 1978 shall apply to the Resolu-
tion Fund and to the Inspector General to the same extent
as they apply to the Environmental Protection Agency.
SEC. 804. STAY OF PENDING LITIGATION.
(a) IN GENERAL.—
(1) Except as provided in this section, enact-
ment of this title operates as a stay, applicable to all
person other than the United States, of the com-
mencement or continuation, including the issuance
or employment of process or service of any pleading,
motion, or notice, of any judicial, administrative, or
other action with respect to claims for indemnity or
other claims arising from a contract for insurance
described in section 802(g)(2)(A)(ii) concerning in-
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HR 3800 IH1S
surance coverage for eligible costs as defined in sec-
tion 802(g)(2)(B)(i).
(2) Nothing in paragraph (1) shall be construed
to apply to the extent the issuance or employment
of process or service of any pleading, motion, or no-
tice, of any judicial, administrative, or other action
with respect to claims for indemnity or other claims
does not concern eligible costs (as defined in section
802(g)(2)(B)(i)) or a contract for insurance de-
scribed in section 802(g)(2)(A)(ii). An eligible per-
son (as defined in section 802(g)(2)(A)) may move
to serve claims not involving eligible costs from
claims involving eligible costs and may proceed with
the prosecution of claims not involving eligible costs.
(b) TERMINATION OF STAY.—
(1) PENDING
OFFER
OF
RESOLUTION.—The
stay established by subsection (a) shall terminate
with respect to an eligible person upon the earlier
of—
(A) the rejection of a resolution offer by
such 
eligible 
person 
pursuant 
to 
section
802(g)(5)(A); or
(B) the failure of the Resolution Fund to
timely fulfill the terms of a resolution offer ac-
cepted by such eligible person.
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(2) EXPIRATION OF RESOLUTION OFFERS.—No
stay established by subsection (a) shall be effective
after May 31, 2000.
(c) OTHER STAYS.—Nothing in this section shall be
construed to limit or affect in any way the discretion of
any judicial, administrative, or other entity to maintain
or impose a stay that is not required by subjection (a)
but that will otherwise serve the ends of justice by staying
a judicial, administrative or other action pending the ac-
ceptance or rejection of a resolution offer pursuant to sec-
tion 802(g)(5)(A).
(d) 
AUTHORITY
OF
UNITED
STATES
UNAF-
FECTED.—Nothing in this section shall be construed to
limit or affect in any way the discretion or authority of
the United States or any party to commerce or continue
all allocation process, cost recovery, or other action pursu-
ant to the authority of sections 101–122a of the Com-
prehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. 9601–9622a).
SEC. 805. SUNSET PROVISIONS.
(a) AUTHORITY TO ACCEPT REQUEST FOR RESOLU-
TION.—The authority of the Resolution Fund to accept
requests for resolution shall terminate after September 30,
1999.
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HR 3800 IH1S
(b) AUTHORITY TO OFFER RESOLUTIONS.—The au-
thority of the Resolution Fund to offer resolutions to eligi-
ble persons shall terminate after March 31, 2000.
(c) CONTINUING OBLIGATIONS.—Nothing in this sec-
tion shall be construed to limit or affect in any way the
authority of the Resolution Fund—
(1) to make payments pursuant to resolution
offers made on or before March 31, 2000; or
(2) to reimburse insurers with respect to litiga-
tion commenced or continued in connection with a
resolution offer made on or before March 31, 2000,
that was rejected by an eligible person or not acted
upon by an eligible person as provided in section
802(g)(5)(a).
SEC. 806. SOVEREIGN IMMUNITY OF THE UNITED STATES.
No obligation or liability of the Resolution Fund shall
constitute an obligation or liability of the United States,
or of any department, agency, instrumentality, officer, or
employee thereof. No person shall have a cause of action
of any kind against the United States, or any department
agency, instrumentality, officer, or employee thereof with
respect to any obligation, liability, or activity of the Reso-
lution Fund.