355
designated by subsection (b)), is amended to
read as follows:
‘‘(A) Any records, reports, documents,
or information obtained from any person
under this section (including records, re-
ports, documents, or information ob-
tained by representatives of the Presi-
dent and records, reports, documents, or
information obtained pursuant to a con-
tract, grant, or other agreement to per-
form work pursuant to this section) shall
be available to the public, except as fol-
lows:
‘‘(i) Upon a showing satisfactory
to the President (or the State, as the
case may be) by any person that
records, reports, documents, or infor-
mation, or any particular part thereof
(other than health or safety effects
data), to which the President (or the
State, as the case may be) or any offi-
cer, employee, or representative has
access under this section if made
public would divulge information en-
titled to protection under section
356
1905 of title 18, United States Code,
such information or particular por-
tion thereof shall be considered con-
fidential in accordance with the pur-
poses of that section, except that such
record, report, document, or informa-
tion may be disclosed to other offi-
cers, employees, or authorized rep-
resentatives of the United States car-
rying out this Act, or when relevant
in any proceeding under this Act, or,
if such records, reports, documents,
or information are obtained or sub-
mitted to the United States (or the
State, as the case may be) pursuant to
a contract, grant, or other agreement
to perform work pursuant to this sec-
tion, to persons from whom the Presi-
dent seeks to recover costs pursuant
to this Act.
‘‘(ii) This section does not require
that information which is exempt
from disclosure pursuant to section
552(a) of title 5, United States Code,
by reason of subsection (b)(5), sub-
357
section (b)(6), or subsection (b)(7) of
such section, be available to the pub-
lic, nor shall the disclosure of any
such information pursuant to this
section authorize disclosure to other
parties or be deemed to waive any
confidentiality privilege available to
the President under any Federal or
State law.’’.
(e) CONFIDENTIALITY
REQUIREMENTS
FOR
CONTRACTORS.—Paragraph 
(8) 
of 
section
104(e) (as redesignated by subsection (b)) is
amended by adding at the end the following
new subparagraph:
‘‘(G)(i) No person described in clause
(ii) may disclose such record, report, doc-
ument, or other information without the
permission of the President.
‘‘(ii) A person referred to in clause (i)
is any person—
‘‘(I) who is not an employee of the
United States Government; and
‘‘(II) who, by virtue of the per-
son’s duties under a contract or coop-
erative agreement with the United
358
States under this section to perform
work for the United States Govern-
ment or implement the requirements
of this Act, has received information
obtained under this section (or any
record, report, or document contain-
ing such information) which, if re-
quested from the United States Gov-
ernment pursuant to section 552 of
title 5, United States Code, would be
exempt from disclosure by reason of
subsection (b) of such section.’’.
(f) AVAILABILITY OF INFORMATION TO CON-
GRESS.—Subsection 104(e) is further amended
by adding after paragraph (9) the following
new paragraph:
‘‘(10) AVAILABILITY OF INFORMATION TO
CONGRESS.—Nothing in this subsection
shall be construed to authorize any per-
son, including the allocator, to withhold
any documents or information from Con-
gress, or any duly authorized Committee
thereof, or limit in any manner the right
of Congress, or any duly authorized Com-
359
mittee thereof, to obtain such documents
or information.’’.
SEC. 402. COMPLIANCE WITH ADMINISTRATIVE ORDERS.
(a) ADDITIONAL AUTHORITY TO ISSUE OR-
DERS.—Section 106(a) (42 U.S.C. 9606(a)) is
amended by adding at the end the following:
‘‘The President may amend such orders and
issue additional orders relating to the facility,
as appropriate, without a subsequent finding
of 
an 
imminent 
and 
substantial
endangerment, to complete all response ac-
tions necessary to respond to an actual or
threatened release or to require additional re-
sponse actions that are necessary or appro-
priate to respond to the actual or threatened
release that was the subject of the original
order.’’.
(b) SUFFICIENT CAUSE.—Section 106(b)(1)
(42 U.S.C. 9606(b)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’;
(2) by striking ‘‘to enforce such
order’’;
(3) by inserting before the period ‘‘, or
be required to comply with such order, or
both, even if another person has com-
360
plied, or is complying, with the terms of
the same order or another order pertain-
ing to the same facility and release or
threatened release’’; and
(4) by inserting at the end the follow-
ing:
‘‘(B) For purposes of this subsection, a
‘sufficient cause’ requires—
‘‘(i) an objectively reasonable belief
by the person to whom the order is is-
sued that the person is not liable for any
response costs under section 107; or
‘‘(ii) that the action to be performed
pursuant to the order is inconsistent with
the national contingency plan.
‘‘(C) The existence or results of an alloca-
tion process pursuant to section 130 shall not
affect or constitute a basis for a determina-
tion of ‘sufficient cause’ under this paragraph
or under section 107(c)(3).’’.
(c) REIMBURSEMENT.—Subsection (b) of
section 106 (42 U.S.C. 9606(b)) is further
amended in the first sentence of paragraph
(2)(A) by striking ‘‘completion of’’ and insert-
361
ing ‘‘the President determines that such per-
son has completed’’.
SEC. 403. LIMITATIONS TO LIABILITY FOR RESPONSE
COSTS.
(a) LIMITATIONS
ON
LIABILITY.—Section
107(a) (42 U.S.C. 9607(a)) is amended as fol-
lows:
(1) In paragraph (1), by striking ‘‘and’’
and inserting ‘‘or’’.
(2) In paragraph (3), by striking ‘‘per-
son,’’ and inserting ‘‘person or’’.
(3) In paragraph (4)(A), by inserting ‘‘,
including the costs of overseeing re-
sponse actions conducted by potentially
responsible parties,’’ before ‘‘incurred by
the United States’’.
(4) In paragraph (4)(B)—
(A) by striking ‘‘other’’ both places
it appears; and
(B) by inserting ‘‘, other than the
United States, a State, or an Indian
tribe,’’ before the phrase ‘‘consistent
with the national contingency plan’’.
(5) In paragraph (4), by striking ‘‘by
such 
person,’’ 
and 
all 
that 
follows
362
through ‘‘shall be liable for—’’ and insert-
ing in lieu thereof the following: ‘‘by such
person—
from which there is a release, or a threatened
release, that causes the incurrence of re-
sponse costs, of a hazardous substance, shall
be liable for—’’.
(6) By designating the text beginning
with ‘‘The amounts recoverable’’ and end-
ing with ‘‘this subsection commences.’’ as
paragraph (5) and aligning the margin of
such text with paragraph (4).
(7) By adding the following new para-
graphs after paragraph (5):
‘‘(6) Notwithstanding paragraphs (1)
through (4) of this subsection, a person
who does not impede the performance of
response actions or natural resource res-
toration shall not be liable:
‘‘(A)(i) To the extent liability is
based solely on paragraph (3) or (4) of
this subsection, and the person ar-
ranged for disposal, treatment, or
transport for disposal or treatment,
or accepted for transport for disposal
363
or treatment of only municipal solid
waste or sewage sludge owned or pos-
sessed by such person, and the per-
son is—
‘‘(I) the owner, operator, or
lessee of residential property;
‘‘(II) a small business; or
‘‘(III) a small non-profit orga-
nization.
‘‘(ii) This subparagraph shall have
no effect on the liability of any other
person.
‘‘(B) To the extent liability is
based solely on paragraph (3) or (4) of
this subsection, and the person can
demonstrate that it arranged for dis-
posal or treatment, or transport for
disposal or treatment or accepted for
transport for disposal or treatment,
55 gallons or less of liquid materials
containing hazardous substances or
pollutants or contaminants or less
than 100 pounds of solid materials
containing hazardous substances or
pollutants or contaminants, or such
364
greater or lesser amount as the Ad-
ministrator may determine by regula-
tion, except in a case in which—
‘‘(i) the Administrator has de-
termined that such material con-
tributed or could contribute sig-
nificantly to the costs of response
at the facility, or
‘‘(ii) the person has failed to
respond fully and completely to
information requests or adminis-
trative subpoenas by the United
States.
‘‘(C) To the extent liability is
based solely on paragraph (1) of this
subsection for a release or threat of
release from a facility, and the person
is a bona fide prospective purchaser
of the facility. Not later than 18
months after the date of the enact-
ment of the Superfund Reform Act of
1994, the Administrator shall issue
guidelines containing criteria for a
person to qualify as a bona fide pro-
spective purchaser. Such guidelines
365
shall include provision for a person
to make a self-evaluation on whether
he or she qualifies as a bona fide pro-
spective purchaser under the criteria
established in the guidelines. Such
provision shall be made readily avail-
able to the public.
‘‘(D) To the extent liability is
based solely on the person’s status as
owner under paragraph (1) for a re-
lease or threat of release from a facil-
ity, and the person acquired the facil-
ity by inheritance or bequest if the
person—
‘‘(i) acquired the real property
on which the facility concerned is
located after disposal or place-
ment of the hazardous substance
took place;
‘‘(ii) did not cause or contrib-
ute to the release or threat of re-
lease; and
‘‘(iii) exercised due care with
respect to the hazardous sub-
stance concerned, including pre-
366
cautions against foreseeable acts
of third parties, taking into con-
sideration the characteristics of
such 
hazardous 
substance, 
in
light of all relevant facts and cir-
cumstances.
‘‘(E) To the extent the liability of
a Federal or State governmental en-
tity or municipality is based solely on
its—
‘‘(i) 
ownership 
of 
a 
road,
street, or other right of way or
public transportation route (other
than railroad rights of way and
railroad 
property) 
over 
which
hazardous substances are trans-
ported; or
‘‘(ii) granting of a license or
permit to conduct business.
‘‘(F) To the extent the liability of
a department, agency, or instrumen-
tality of the United States is based on
actions of such department, agency,
or instrumentality taken in response
to a natural disaster pursuant to the
367
Act of August 18, 1941 (33 U.S.C. 701n)
or The Robert T. Stafford Disaster
Relief and Emergency Act (42 U.S.C.
5121 and following).
‘‘(7) Notwithstanding paragraphs (1)
through (4), a person shall not be liable
for more than 10 percent of total re-
sponse costs at a facility, in aggregate, to
the extent the person’s liability is based
solely on paragraph (3) or (4) of this sub-
section, and the arrangement for dis-
posal, treatment, or transport for dis-
posal or treatment, or the acceptance for
transport for disposal or treatment, in-
volved only municipal solid waste or sew-
age sludge. In any case in which more
than one person at a facility comes with-
in the coverage of this paragraph, the 10
percent limitation on liability shall apply
to the aggregate liability of all such per-
sons. Such limitation on liability shall
apply only if either the acts or omissions
giving rise to liability occurred before
the date occurring 36 months after enact-
ment of this paragraph, or the person as-
368
serting the limitation institutes or par-
ticipates in a qualified household hazard-
ous waste collection program within the
meaning of section 101(43).
‘‘(8)(A) Notwithstanding paragraphs
(1) through (4) of this subsection, the li-
ability of a person who does not impede
the performance of response actions or
natural resource restoration with respect
to a release or threatened release from a
vessel or facility shall be limited to the
lesser of the fair market value of the ves-
sel or facility or the actual proceeds of
the sale of the vessel or facility received
by the person, to the extent such liability
is based solely on the person’s status as
owner under paragraph (1) of the vessel
or facility if the person—
‘‘(i) holding title, either outright
or in trust, to the vessel or facility is
an organization described in section
501(c)(3) of the Internal Revenue
Code of 1986 and exempt from tax
under section 501(a) of such Code and
holds such title as a result of a chari-
369
table donation that qualifies under
section 170 of such Code; and
‘‘(ii) exercised due care with re-
spect to the hazardous substance con-
cerned, including precautions against
foreseeable acts of third parties, tak-
ing into consideration the character-
istics of such hazardous substance, in
light of all relevant facts and cir-
cumstances.
‘‘(B) The limitation on liability pro-
vided for by subparagraph (A) shall not
apply in any case in which the Adminis-
trator determines that the person—
‘‘(i) acquired the real property on
which the facility is located, or ac-
quired the vessel, on or before dis-
posal or placement of the hazardous
substance took place; or
‘‘(ii) caused or contributed to the
release or threat of release.’’.
(b) PROSPECTIVE PURCHASER AND WINDFALL
LIEN.—Section 107 is amended by inserting
after subsection (m) the following new sub-
section:
370
‘‘(n) PROSPECTIVE PURCHASER
AND WIND-
FALL LIEN.—(1) 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 (a)(6)(C), and the condi-
tions described in paragraph (2) are met, the
United States shall have a lien upon such fa-
cility for such unrecovered costs. Such lien—
‘‘(A) shall not exceed the increase in
fair market value of the property attrib-
utable to the response action at the time
of a subsequent sale or other disposition
of property;
‘‘(B) shall arise at the time costs are
first incurred by the United States with
respect to a response action at the facil-
ity;
‘‘(C) shall be subject to the require-
ments for notice and validity established
in paragraph (3) of subsection (l); and
‘‘(D) shall continue until the earlier of
satisfaction of the lien or recovery of all
response costs incurred at the facility.
‘‘(2) The conditions referred to in para-
graph (1) are the following:
371
‘‘(A) A response action for which
there are unrecovered costs is carried
out at the facility.
‘‘(B) Such response action increases
the fair market value of the facility above
the fair market value of the facility that
existed within six months before the re-
sponse action was taken.
‘‘(C) A sale or other disposition of all
or a portion of the facility has occurred.’’.
‘‘(3) No lien under this section shall arise
(A) with respect to property for which the
property owner preceding the first bona fide
prospective purchaser is not a liable party or
has resolved its liability under this Act, or (B)
where an audit or inquiry required under sec-
tion 101(39)(B) by an environmental profes-
sional certified under section 612 of the
Superfund Reform Act of 1994 gives the bona
fide prospective purchaser no knowledge or
reason to know of the release of hazardous
substances.’’.
SEC. 404. LIABILITY.
(a) LIABILITY.—Section 107(a) (42 U.S.C.
9607(a)) (as amended by section 403) is further
372
amended by adding the following new para-
graph at the end thereof:
‘‘(9) The Administrator shall calculate
the Environmental Protection Agency re-
sponse action oversight costs for which
potentially responsible parties are liable
under this section (pursuant to para-
graph (4)(A)) on a national basis as a per-
centage of total response costs incurred
by potentially responsible parties (in this
paragraph referred to as the ‘national
oversight rate’). The calculation shall be
based on data comparing oversight ex-
penditures of the Environmental Protec-
tion Agency to estimated or actual re-
sponse costs incurred by potentially re-
sponsible 
parties. 
The 
Administrator
shall periodically review and update the
national oversight rate. In no case shall
the rate exceed 10 percent of total re-
sponse costs incurred by potentially re-
sponsible parties. The national oversight
rate shall be applied to all settlements
under section 130.’’.
373
(b) 
AMOUNT
OF
LIABILITY.—Section
107(c)(3) (42 U.S.C. 9607(c)(3)) is amended in
the first sentence—
(1) by inserting ‘‘, in addition to liabil-
ity for any response costs incurred by the
United States as a result of such failure
to take proper action,’’ after ‘‘person’’ the
second time it appears; and
(2) by striking ‘‘at least equal to,’’ and
all that follows through the end of the
sentence and inserting ‘‘up to three times
the amount of such response costs.’’.
(c) CLARIFICATION OF COMMON CARRIER LI-
ABILITY.—Section 107(b)(3) is amended by
striking out ‘‘from a published tariff and ac-
ceptance for’’ and inserting ‘‘exclusively from
a contract for’’.
(d) SMALL BUSINESS CONSTRUCTION CON-
TRACTORS.—Section 107 is amended by adding
at the end the following:
‘‘(o) SMALL BUSINESS CONSTRUCTION CON-
TRACTORS.—There shall be no liability under
subsection (a) of this section based solely on
a person’s construction activities at a facility
374
if such person can demonstrate by a prepon-
derance of evidence that—
‘‘(1) such construction activities were
specifically directed by and carried out
in accordance with a contract with an
owner or operator of the facility; and
‘‘(2) the person is a small business
construction contractor as defined by
section 101(49).’’.
SEC. 405. CIVIL PROCEEDINGS.
(a) PETITIONS.—Section 113(a) (42 U.S.C.
9613(a)) is amended—
(1) by striking ‘‘upon application by
any interested person’’ and inserting ‘‘by
any interested person through the filing
of a petition for review’’; and
(2) by striking ‘‘application shall be
made’’, and inserting ‘‘petition shall be
filed’’.
(b) PERIOD
IN
WHICH
ACTION
MAY
BE
BROUGHT.— Section 113(g) (42 U.S.C. 9613(g))
is amended by striking paragraphs (2) and (3)
and inserting in lieu thereof the following:
‘‘(2) 
ACTIONS
FOR
RECOVERY
OF
COSTS.—(A) Except as provided in sub-
375
paragraph (C), an initial action for recov-
ery of costs referred to in section 107
must be commenced—
‘‘(i) for a removal action, within 3
years after completion of all removal
action taken with respect to the facil-
ity, including off-site disposal of any
removed materials, except that if
physical on-site construction of the
remedial action is initiated within 3
years after the completion of all re-
moval action taken with respect to
the facility, costs incurred for re-
moval action may be recovered in a
cost recovery action brought under
clause (ii); and
‘‘(ii) for a remedial action, within
6 years after initiation of physical on-
site construction of the remedial ac-
tion.
‘‘(B) In any such action described in
this paragraph, the court shall enter a
declaratory judgment on liability for re-
sponse costs or damages that will be
binding in such action or in any subse-
376
quent action or actions to recover further
response costs or damages. A subsequent
action or actions under section 107 for
further response costs at the vessel or fa-
cility may be maintained at any time dur-
ing the response action, but must be com-
menced no later than 3 years after the
date of completion of all response action.
Except as otherwise provided in this
paragraph, an action may be commenced
under section 107 for recovery of costs at
any time after such costs have been in-
curred.
‘‘(C) An action by any potentially re-
sponsible party against another poten-
tially responsible party for recovery of
any response costs or damages must be
commenced within the later of—
‘‘(i) the time limitations set forth
in subparagraph (A); or
‘‘(ii) where recovery is sought for
costs or damages paid pursuant to a
judgment 
or 
settlement, 
years
after—
377
‘‘(I) the date of judgment in
any action under this Act for re-
covery of such costs or damages,
or
‘‘(II) the date of any adminis-
trative order or judicial settle-
ment for recovery of the costs or
damages paid or incurred pursu-
ant to such a settlement.
‘‘(3) CLAIMS BY THE UNITED STATES OR
STATES.—Claims by the United States
under section 106 and claims by the Unit-
ed States or a State under section 107(a)
shall not be deemed compulsory counter-
claims in an action against the United
States or a State seeking response costs,
contribution, 
damages, 
or 
any 
other
claim by any person under this Act.’’.
(c) JUDICIAL REVIEW.—Section 113(j)(1) (42
U.S.C. 9613(j)(1)) is amended by striking ‘‘or
ordered by the President’’ and inserting ‘‘or
selected by the President pursuant to this Act,
or ordered or sought by the President,’’.
378
SEC. 406. LIMITATIONS ON CONTRIBUTION ACTIONS.
Section 113(f) (42 U.S.C. 9613(f)) is amend-
ed as follows:
(1) Paragraph (1) is amended—
(A) by striking ‘‘Any person’’ in
the first sentence and inserting ‘‘Ex-
cept as provided in paragraph (4),
any person who is liable or poten-
tially liable under section 107(a)’’;
(B) by striking ‘‘, during or follow-
ing any civil action under section 106
or under section 107(a).’’ and insert-
ing ‘‘in a claim asserted under section
107(a).’’;
(C) in the second sentence, by
striking ‘‘this section’’ and inserting
‘‘section 107(a), this section,’’; and
(D) by striking the sentence be-
ginning with ‘‘Nothing in this sub-
section’’.
(2) Paragraph (2) is amended to read
as follows:
‘‘(2) SETTLEMENTS.—A person who has
resolved its liability to the United States
in an administrative or judicially ap-
proved settlement shall not be liable for
379
contribution or any other claims by any
person other than a State acting under
section 107(a)(4)(A) (and not as a poten-
tially responsible party) regarding re-
sponse actions, response costs, or dam-
ages addressed in the settlement. A per-
son who has resolved its liability to a
State or an Indian tribe in an administra-
tive or judicially approved settlement
shall not be liable for contribution or any
other claims by persons other than the
United States Government acting under
section 107(a)(4)(A) (and not as a poten-
tially responsible party) regarding re-
sponse costs or damages addressed in the
settlement for which the State or Indian
tribe has a claim under this title. Such
settlement does not discharge any other
potentially responsible persons unless its
terms so provide, but it reduces the po-
tential liability of such other persons by
the amount of the settlement. The protec-
tion afforded by this subsection shall in-
clude protection against claims, under
Federal or State law, that may be as-
380
serted against the settling party for re-
covery of response costs or damages in-
curred or paid by another person, if such
costs or damages are addressed in the
settlement, but shall not include protec-
tion against claims based on contractual
indemnification or other express contrac-
tual agreements to pay such costs or
damages.’’.
(3) Such section is amended by add-
ing at the end the following new para-
graph:
‘‘(4) LIMITATIONS ON CONTRIBUTION AC-
TIONS.—(A) There shall be no right of con-
tribution under this subsection in any of
the following circumstances:
‘‘(i) The person asserting the right
of contribution has waived the right
in a settlement pursuant to this Act.
‘‘(ii) The person from whom con-
tribution is sought is not liable under
this Act.
‘‘(iii) The person from whom con-
tribution is sought has entered into a
settlement with the United States
381
pursuant to section 122(g), with re-
spect to matters addressed in that
settlement.
‘‘(B) Any person who commences an
action for contribution shall be liable to
the person against whom the claim of
contribution is brought for all reasonable
costs of defending against the claim, in-
cluding all reasonable attorneys’ and ex-
pert witness fees, if—
‘‘(i) the action is barred by sub-
paragraph (A);
‘‘(ii) the action is brought against
a person who is not liable under this
Act;
‘‘(iii) the action is brought against
a person who is protected from such
suits pursuant to section 113(f)(2) by
reason of a settlement with the Unit-
ed States; or
‘‘(iv) the action is brought during
the moratorium pursuant to section
130.’’.
382
SEC. 407. SCOPE OF RULEMAKING AUTHORITY.
(a) IN GENERAL.—Section 115 (42 U.S.C.
9615) is amended to read as follows:
‘‘SEC. 115. PRESIDENTIAL DELEGATION AND ASSIGNMENT
OF DUTIES OR POWERS AND PROMULGATION
OF REGULATIONS.
‘‘The President (or the Administrator
where applicable) is authorized to promul-
gate such regulations as the President (or the
Administrator where applicable) deems nec-
essary to carry out the provisions of this Act,
and to delegate and assign any duties or pow-
ers imposed upon or assigned to him by this
Act, including the authority to promulgate
regulations. The preceding sentence includes
authority to clarify or interpret all terms and
to implement any provision of this Act.’’.
(b) LENDER LIABILITY RULE.—(1) Effective
on the date of enactment of this section, the
final rule issued by the Administrator of the
Environmental Protection Agency on April 29,
1992 (57 Fed. Reg. 18344), shall be deemed to
have been validly issued pursuant to the au-
thority of the Comprehensive Environmental
Response, Compensation, and Liability Act of
383
1980, and to have been effective according to
the final rule’s terms. No additional adminis-
trative or judicial proceedings shall be nec-
essary with respect to such final rule.
(2) Notwithstanding section 113(a) of the
Comprehensive 
Environmental 
Response,
Compensation and Liability Act of 1980, no
court shall have jurisdiction to review the
final rule issued by the Administrator of the
Environmental Protection Agency on April 29,
1992 (57 Fed. Reg. 18344).
(3) Nothing in this subsection shall be con-
strued to limit the authority of the President
or his delegate to amend the final rule issued
by the Administrator of the Environmental
Protection Agency on April 29, 1992 (57 Fed.
Reg. 18344), in accordance with applicable
provisions of law.
SEC. 408. RESPONSE ACTION CONTRACTORS.
(a) EXTENSION OF NEGLIGENCE STANDARD.—
Section 119(a)(1) (42 U.S.C. 9619(a)(1)) is
amended—
(1) by inserting ‘‘or under the law of
any State or political subdivision’’ after
‘‘Federal law’’; and
384
(2) by adding at the end the following
new sentence: ‘‘Notwithstanding the pre-
ceding sentence, this section shall not
apply in determining the liability of a re-
sponse action contractor under the law of
any State or political subdivision thereof
if the State has adopted by statute an al-
ternative process intended to promote
quality response actions and ensure max-
imum competition by professional compa-
nies of all sizes providing response ac-
tions.’’.
(b) 
NEGLIGENCE
STANDARD.—Section
119(a)(2) (42 U.S.C. 9619(a)(2)) is amended by
inserting ‘‘(A)’’ before ‘‘Paragraph’’ and by
adding at the end the following:
‘‘(B) For the purposes of this para-
graph, a response action contractor’s con-
duct shall not be deemed to be negligent
if—
‘‘(i) such conduct is based on the
standard of skill and learning com-
monly possessed by members of the
profession in good standing as those
standards exist at the time that the
385
conduct occurred and under the par-
ticular circumstances involved, or
‘‘(ii) such conduct is carried out
in accordance with a plan which was
approved by the President.’’.
(c) CLARIFICATION
OF
RESPONSE
ACTION
CONTRACTOR
LIABILITY.—Section 119(a) (42
U.S.C. 9619(a)) is amended by inserting after
paragraph (4) the following new paragraph:
‘‘(5) LIABILITY.—Notwithstanding any
other provision of this Act, any liability
of a response action contractor under
this Act shall be determined solely in ac-
cordance with this section.’’.
(d) INDEMNIFICATION FOR THREATENED RE-
LEASES.—Section 119(a) (42 U.S.C. 9619(a)) is
further amended by adding at the end the fol-
lowing:
‘‘(6) 
IMPLEMENTATION
OF
TECH-
NOLOGIES.—No response action contractor
shall be liable under this title solely as a
result of such contractor’s testing or im-
plementation of an investigative or reme-
dial technology with respect to a re-
sponse action if use of the technology in
386
connection with the response action has
been approved by the authorized Federal
or State regulatory agency. This para-
graph shall not apply in the case of neg-
ligence, gross negligence, or intentional
misconduct by such contractor in imple-
menting the approved technology, includ-
ing any noncompliance with the ap-
proved process for implementing the
technology.’’.
(e) INDEMNIFICATION CLARIFICATION.—Sec-
tion 119(c)(1) (42 U.S.C. 9619(c)(1)) is amended
by inserting ‘‘under Federal, State, or com-
mon law’’ after ‘‘any liability’’.
(f) INDEMNIFICATION FOR THREATENED RE-
LEASES.—Section 
119(c)(5)(A) 
(42 
U.S.C.
9619(c)(5)(A)) is amended by inserting ‘‘or
threatened release’’ after ‘‘release’’ each place
it appears.
(g) DETERMINATION
TO
INDEMNIFY.—Sec-
tion 119(c) (42 U.S.C. 9619(c)) is amended by
redesignating paragraphs (5), (6), (7), and (8)
as paragraphs (6), (7), (8), and (9), respec-
tively, and by inserting after paragraph (4)
the following new paragraph:
387
‘‘(5) DETERMINATION
TO
INDEMNIFY.—
Notwithstanding any guidelines or regu-
lations of this section, the President
shall, for each response action contract
for a facility or facilities, make a decision
whether to enter into an indemnification
agreement with a response action con-
tractor. The President shall enter into
such an agreement unless the President
determines there is insurance reasonably
available to such contractor upon fair
and reasonable terms (including consid-
eration of premium, policy terms, and
deductibles) that is likely to provide ade-
quate long-term protection to the public
for the potential liabilities involved in
the response action (including consider-
ation of policy coverage, limits, and re-
newal terms). The President’s determina-
tion shall be made a part of the invitation
for bids or the request for proposals for
each such response action contract.’’.
(h) EXTENSION OF SECTION 119 COVERAGE.—
Section 119(e)(1) (42 U.S.C. 9619(e)(1)) is
amended—
388
(1) by striking ‘‘carrying out an agree-
ment under section 106 or 122’’;
(2) by striking ‘‘any remedial action
under this Act at a facility listed on the
National Priorities List, or any removal
under this Act,’’ and inserting ‘‘any re-
sponse action under this Act’’; and
(3) by inserting ‘‘or to undertake ap-
propriate actions necessary to protect
and restore any natural resources dam-
aged by such release or threatened re-
lease’’ before the period at the end.
(i) EXTENSION.—Section 119 (42 U.S.C.
9619) is amended—
(1) in subsection (e)(2)(C) by striking
‘‘, and before January 1, 1996,’’; and
(2) in subsection (g)(5) by striking ‘‘,
or after December 31, 1995’’.
(j) STATUTE OF REPOSE.—Section 119 (42
U.S.C. 9619) is amended by adding at the end
the following new subsection:
‘‘(h) LIMITATION ON ACTIONS AGAINST RE-
SPONSE ACTION CONTRACTORS.—No action to
recover for any injury to property, real or per-
sonal, or for bodily injury or wrongful death,
389
or any other expenses or costs arising out of
the performance of services under a response
action contract, nor any action for contribu-
tion or indemnity for damages sustained as a
result of such injury, shall be brought against
any response action contractor more than 6
years after the completion of work at any site
under such contract. The limitation pre-
scribed in this subsection shall not affect any
right of indemnification which such response
action contractor may have under this section
or may acquire by written agreement with
any party. This subsection shall not apply if
a State adopts by statute an alternative proc-
ess intended to promote quality response ac-
tions and ensure maximum competition by
professional companies of all sizes providing
response actions.’’.
SEC. 409. ENHANCEMENT OF SETTLEMENT AUTHORITIES.
Section 122 (42 U.S.C. 9622) is amended as
follows:
(1) Subsection (b) is amended by
striking paragraph (3) and redesignating
paragraph (4) as paragraph (3).
390
(2) Section 122(d)(1) is amended by
adding at the end the following new sub-
paragraph:
‘‘(D) 
COMPLIANCE.—Any 
consent
decree shall require the parties to at-
tempt expeditiously to resolve dis-
agreements concerning implementa-
tion of the remedial action informally
with the appropriate Federal and
State agencies. Where the parties
agree, the consent decree may pro-
vide for administrative enforcement.
Each consent decree shall also con-
tain stipulated penalties for viola-
tions of the decree in an amount not
to exceed $25,000 per day, which may
be enforced by either the President
or the State. Such stipulated pen-
alties shall not be construed to im-
pair or affect the authority of the
court to order compliance with the
specific terms of any such decree.’’.
(3) Subsection (e) is amended—
(A) by striking paragraph (3); and
391
(B) by redesignating paragraphs
(4) and (5) as paragraphs (3) and (4),
respectively.
(4) The section is amended—
(A) by transferring paragraph (6)
to the end of the section and redesig-
nating such paragraph as subsection
(o);
(B) in such subsection (o) (as so
transferred 
and 
redesignated), 
by
striking ‘‘remedial action’’ and insert-
ing ‘‘response action’’, and by insert-
ing ‘‘or the State under applicable
law’’ before the period at the end; and
(C) by adding after such sub-
section (o) (as so transferred and re-
designated) the following new sub-
sections:
‘‘(p) RETENTION OF FUNDS.—(1) If, as part of
any settlement agreement under this Act, the
potentially responsible parties will be paying
amounts to the President for carrying out any
response action, the President may retain
such amounts in interest bearing accounts,
and use such amounts, together with accrued
392
interest, to conduct or enable other persons to
conduct such response action.
‘‘(2) If, as part of any settlement agree-
ment for carrying out a response action under
this Act, a potentially responsible party or
parties will be paying amounts to the United
States, the Administrator is authorized to ac-
cept ownership of a financial instrument run-
ning irrevocably to the benefit of the United
States to conduct, or enable other persons to
conduct, such response actions. For the pur-
poses of this paragraph, the term ‘financial in-
strument’ means an annuity contract, funding
agreement, or similar instrument acceptable
to the Secretary of the Treasury, that is pur-
chased by one or more potentially responsible
parties, and has a defined schedule of peri-
odic payments which coincides with the obli-
gations set forth in the settlement agreement.
Periodic payments under such a financial in-
strument will be made to the owner, or as the
owner directs, for response costs at the facil-
ity which is the subject of the settlement
agreement.
393
‘‘(q) CHALLENGE TO COST RECOVERY COMPO-
NENT
OF SETTLEMENT.—Notwithstanding the
limitations on review in section 113(h), and
except as provided in subsection (g) of this
section, a person whose potential claim for re-
sponse costs or contribution is limited as a re-
sult of contribution protection afforded by an
administrative settlement under this section
may challenge the cost recovery component of
such settlement. Such a challenge may be
made only by filing a complaint against the
Administrator in the United States District
Court within 60 days after such settlement be-
comes final. Venue shall lie in the district in
which the principal office of the appropriate
region of the Environmental Protection Agen-
cy is located. Any review of an administrative
settlement shall be limited to the administra-
tive record, and the settlement shall be
upheld unless the objecting party can dem-
onstrate on that record that the decision of
the President to enter into the administrative
settlement was arbitrary, capricious, or other-
wise not in accordance with law.
394
‘‘(r) UNSUCCESSFUL CHALLENGERS LIABLE
FOR ATTORNEY’S FEES.—Any party who chal-
lenges any settlement entered into between
the President and any potentially responsible
party under this Act, and who is not success-
ful in overturning or modifying the settle-
ment, shall be liable to the United States and
any settling party for all reasonable attor-
neys’ fees and costs incurred in defending the
settlement.’’.
SEC. 410. PROFESSIONAL SERVICES.
Section 122 is amended by adding after
subsection (r), as added by section 408, the fol-
lowing new subsection:
‘‘(s) PROFESSIONAL SERVICES.—The Admin-
istrator has the authority to use the proce-
dures set forth in section 109(e) to obtain the
services of neutral professionals to assist in
the conduct of settlement negotiations under
this section, whether or not the neutral pro-
fessional actually participates in such nego-
tiations.’’.
SEC. 411. FINAL CONVENANTS.
Section 122(f) is amended as follows:
395
(1) Paragraph (1) is amended to read
as follows:
‘‘(1) FINAL COVENANTS.—The President
shall offer potentially responsible parties
who enter into settlement agreements
that are in the public interest a final cov-
enant not to sue concerning any liability
to the United States under this Act, in-
cluding a covenant with respect to future
liability, for response actions or response
costs addressed in the settlement, if all of
the following conditions are met:
‘‘(A) The settling party agrees to
perform, or there are other adequate
assurances of the performance of, a
final remedial action authorized by
the Administrator for the release or
threat of release that is the subject of
the settlement.
‘‘(B) The remedial action does not
provide that any hazardous sub-
stances will remain at the facility at
concentrations above the protective
concentration levels established pur-
396
suant to section 121(d) after the final
remedial action is completed.
‘‘(C) The settlement agreement
has been reached prior to the com-
mencement of litigation against the
settling party under section 106 or
107 of this Act with respect to this fa-
cility.
‘‘(D) The settling party waives all
contribution rights against other po-
tentially responsible parties at the fa-
cility.
‘‘(E) The settling party pays a pre-
mium that compensates for the risks
of remedy failure; future liability re-
sulting from unknown conditions; un-
anticipated increases in the cost of
any uncompleted response action, un-
less the settling party is performing
the response action; and the United
States litigation risk as provided in
section 130 with respect to persons
who have not resolved their liability
to the United States under this Act,
unless all parties have settled their li-