‘‘(B) exercised due care with respect to the
hazardous substance concerned, including pre-
cautions against foreseeable acts of third par-
ties, taking into consideration the characteris-
tics of such hazardous substance, in light of all
relevant facts and circumstances;
‘‘(C) did not cause or contribute to the re-
lease or threat of release; and
‘‘(D) acquired the real property on which
the facility concerned is located, or acquired the
vessel, after disposal or placement of the haz-
ardous substance took place.
‘‘(9) 
CONSTRUCTION
CONTRACTOR
EXEMP-
TION.—There shall be no liability under subsection
(a) of this section based solely on a person’s con-
struction activities at a facility if such person can
demonstrate by a preponderance of evidence that
such construction activities were specifically directed
by and carried out in accordance with a contract
with an owner or operator of the facility.
‘‘(10) CONTIGUOUS
PROPERTIES.—A person
(other than the United States or a department,
agency or instrumentality of the United States) who
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 such release shall
not be liable under subsection (a)(1) or (2) by rea-
son of such ownership or operation solely by reason
of such contamination if such person—
‘‘(A) did not cause, contribute, or consent
to the release or threatened release, and
‘‘(B) provides full cooperation, assistance,
and facility access to persons authorized to con-
duct response actions at the facility.
The President may issue an assurance of no enforce-
ment action under this Act to any such person and
may grant any such person protection against cost
recovery and contribution actions pursuant to sec-
tion 113(f)(2). Such person may also petition the
President to exclude from the description of a Na-
tional Priorities List site such contiguous real prop-
erty, if such property is or may be contaminated
solely by ground water that flows under such prop-
erty and is not used as a source of drinking water.
The President may grant such a petition pursuant
to such procedures as he deems appropriate.
‘‘(11) LIMITATION.—This subsection shall not
apply to any person who impedes the performance of
a response action or natural resource restoration at
the facility concerned.
‘‘(12) LIMITATION ON LIABILITY OF RAILROAD
OWNERS.—Notwithstanding section 107(a)(1), a
person that does not impede the performance of a
response action or natural resource restoration shall
not be liable under this Act to the extent that liabil-
ity is based solely on the status of the person as a
railroad owner or operator of a spur track, including
a spur track over land subject to an easement, to a
facility that is owned or operated by a person that
is not affiliated with the railroad owner or operator,
if—
‘‘(A) the spur track provides access to a
main line or branch line track that is owned or
operated by the railroad;
‘‘(B) the spur track is 10 miles long or
less; and
‘‘(C) the railroad owner or operator does
not cause or contribute to a release or threat-
ened release at the spur track.’’.
(b) CONFORMING AMENDMENT.—Section 107(a) is
amended by striking ‘‘, and subject only to the defenses
set forth in subsection (b) of this section’’.
(c) EFFECTIVE DATE AND TRANSITION RULES.—
The amendments made by this section shall take effect
with respect to actions under section 106 or 107 of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 which become final on or after
the date of the enactment of this Act, except that such
amendments shall not apply in the following:
(1) Any action brought by any person other
than the United States under section 107 of such
Act for contribution to costs or damages incurred by
such person before October 18, 1995.
(2) Any action seeking indemnity, rights of de-
fense or other rights under any contract of indem-
nification or insurance.
SEC. 204. CLARIFICATIONS OF CERTAIN LIABILITY.
(a) 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 liability 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 insert-
ing ‘‘up to three times the amount of such response
costs.’’.
(b) CLARIFICATION OF COMMON CARRIER LIABIL-
ITY.—Section 107(b)(3) is amended by striking out ‘‘from
a published tariff and acceptance for’’ and inserting ‘‘ex-
clusively from a contract for’’.
(c) OTHER CLARIFICATIONS.—Section 107(a) (42
U.S.C. 9607(a)) is amended as follows:
(1) In paragraph (1), by striking ‘‘and’’ and in-
serting ‘‘or’’.
(2) In paragraph (4)(B)—
(A) by striking ‘‘other’’ both places it ap-
pears; and
(B) by inserting ‘‘, other than the United
States, a State, or an Indian tribe,’’ before the
phrase ‘‘consistent with the national contin-
gency plan’’.
(3) In paragraph (4), by striking ‘‘by such per-
son,’’ and all that follows through ‘‘shall be liable
for—’’ and inserting in lieu thereof the following:
‘‘by such person—
from which there is a release, or a threatened release, that
causes the incurrence of response costs, of a hazardous
substance, shall be liable for—’’.
(4) By designating the text beginning with
‘‘The amounts recoverable’’ and ending with ‘‘this
subsection commences.’’ as paragraph (5) and align-
ing the margin of such text with paragraph (4).
SEC. 205. ILLEGAL ACTIVITIES.
Title III is amended by adding the following new sec-
tion at the end thereof:
‘‘SEC. 313. ILLEGAL ACTIVITIES.
‘‘Section 107(n) and section 112(g) shall not apply
to any person whose liability under section 107(a) is based
on any act, omission, or status that is determined by a
court of competent jurisdiction, within the applicable stat-
ute of limitation, to have been illegal at the time the act
or omission occurred or the status existed.’’.
SEC. 206. AMENDMENTS TO SECTION 106.
(a) ADMINISTRATIVE ORDERS.—Section 106(a) (42
U.S.C. 9606(a)) is amended by adding at the end the fol-
lowing: ‘‘The President may not amend such administra-
tive orders or issue additional orders relating to the facil-
ity without a subsequent finding of an imminent and sub-
stantial endangerment. No order may be issued under this
section against any person who would not be liable for
costs or damages referred to in section 107(a). In any case
in which the President issues an order to a person under
this subsection, the President shall provide information
concerning the evidence that indicates that each element
of liability contained in section 107(a) is present.’’.
(d) LIMITATION ON AUTHORITY FOR PRE-ENACT-
MENT RELEASES.—Section 106 is amended by adding the
following new subsection at the end thereof:
‘‘(d) LIMITATION ON AUTHORITY FOR PRE-ENACT-
MENT RELEASES AT NON-NPL FACILITIES.—
‘‘(1) POST-ENACTMENT
ORDERS.—Except in
the case of a facility listed on the National Priorities
List, no orders issued under this section on or after
the date of enactment of this subsection addressing
individual or cumulative releases of hazardous sub-
stances from a facility before the enactment of this
subsection, may require:
‘‘(A) aggregate expenditures to be made at
such facility pursuant to this section in excess
of $3,000,000; or
‘‘(B) response actions to be taken after the
date 2 years after the date on which the order
is issued.
‘‘(2) PRE-ENACTMENT ORDERS.—Except in the
case of a facility listed on the National Priorities
List, any order issued under this section before the
enactment of this subsection addressing individual or
cumulative releases of hazardous substances from a
facility before the enactment of this subsection shall
cease to have any force and effect after the date on
which aggregate expenditures made at such facility
after the enactment of this subsection pursuant to
such order have reached $3,000,000.’’
SEC. 207. ALLOCATION PROCEDURES.
Title I is amended by adding after section 127 (as
added by section 101) the following new section:
‘‘SEC. 128. ALLOCATIONS AT MULTI-PARTY FACILITIES.
‘‘(a) TRIGGERING OF ALLOCATION PROCESS.—
‘‘(1) MANDATORY
ALLOCATIONS.—Except as
provided in paragraph (3) of this subsection, the
President shall initiate the allocation process estab-
lished under this section—
‘‘(A) for any response action involving two
or more potentially responsible parties for which
total costs exceed $1,000,000 in the aggregate
when such an allocation is requested in writing
by any potentially responsible party who has (i)
incurred response costs with respect to a re-
sponse action, (ii) resolved its liability to the
United States with respect to a response action,
or (iii) received an order pursuant to section
106 of this Act; and
‘‘(B) for any response action involving two
or more potentially responsible parties for which
there is a Fund reimbursable share under sub-
section (n).
‘‘(2) DISCRETIONARY ALLOCATIONS.—For any
response action involving two or more potentially re-
sponsible parties other than a response action de-
scribed in subparagraph (A) or (B) of paragraph
(1), the President may, at the request in writing of
any potentially responsible party, initiate the alloca-
tion process established under this section if the
President deems it appropriate.
‘‘(3) EXCLUDED
FACILITIES.—The allocation
process established under this section shall not apply
to any response action for which there has been a
final settlement, decree, or order that determines the
allocated shares of all potentially responsible parties
with respect to such response action as of the date
of the enactment of this section.
‘‘(4) SCOPE OF ALLOCATIONS.—Each allocation
under this section shall apply to the costs of all re-
sponse actions at a facility that are selected by the
President after the date of the enactment of this
section unless the allocator determines, in his sole
discretion, that it should apply only to one or more
of such response actions at the facility.
‘‘(5) OTHER
MATTERS.—Except as otherwise
expressly provided, nothing in this section shall limit
or affect—
‘‘(A) the President’s obligation to initiate
the allocation process for response actions at fa-
cilities that have been the subject of partial or
expedited settlements;
‘‘(B) the ability of any person to resolve its
liability at a facility to any other person at any
time before initiation or completion of the allo-
cation process;
‘‘(C) the validity, enforceability, finality or
merits of any judicial or administrative order,
judgment, or decree issued prior to the date of
enactment of this Act with respect to liability
under this Act; or
‘‘(D) the validity, enforceability, finality or
merits of any pre-existing contract or agree-
ment relating to any allocation of responsibility
or any indemnity for, or sharing of, any re-
sponse costs under this Act.
‘‘(b) MORATORIUM ON LITIGATION AND ENFORCE-
MENT.—(1) No person may commence any civil action or
assert any claim under this Act seeking recovery of any
response costs, or contribution toward such costs, in con-
nection with any response action for which the President
has initiated an allocation, until 180 days after issuance
of the allocator’s report under subsection (i)(5), or of a
second or subsequent report under subsection (p).
‘‘(2) If any such action or claim under this Act is
pending (A) upon the date of enactment of the Reform
of Superfund Act of 1995, or (B) upon initiation of an
allocation, then such action or claim, including any pend-
ent claim under State law over which a court is exercising
jurisdiction, shall be stayed until 90 days after the issu-
ance of the allocator’s report under subsection (i)(5), or
of a second or subsequent report under subsection (p), un-
less the court determines that a stay will result in manifest
injustice.
‘‘(3) Any applicable limitations period with respect to
actions subject to paragraph (1) shall be tolled from the
earlier of (A) the date of listing of the facility on the Na-
tional Priorities List, where such listing occurs after the
date of enactment of this Act, or (B) the commencement
of the allocation process pursuant to this section, until 90
days after the issuance of the allocator’s report under sub-
section (i)(5), or of a second or subsequent report under
subsection (p).
‘‘(4) After the date of enactment of the Reform of
Superfund Act of 1995, the Administrator shall not issue
any order under section 106 of this Act to any persons
or at any facility that is the subject of an allocation under
subsection (a) until 90 days after the issuance of the
allocator’s report under subsection (i)(5), or of a second
or subsequent report under subsection (p), except an order
in which the Administrator requires the performance of
a removal action that is necessary to address a situation
at the facility that actually presents substantial danger to
public health or welfare or the environment.
‘‘(5) Except as otherwise expressly provided in this
Act, nothing in this section shall in any way limit or affect
the President’s authority to exercise the powers conferred
by sections 103, 104, 105, 106, or 122 of this Act, or
to commence an action against a party where there is a
contemporaneous filing of a judicial consent decree resolv-
ing that party’s liability, or to file a proof of claim or take
other action in a proceeding under title 11 of the United
States Code.
‘‘(6) Except as otherwise expressly provided, the allo-
cation process established in this section shall not be con-
strued to modify or affect in any way the principles of
liability under this title as determined by the courts of the
United States.
‘‘(c) ALLOCATION PROCESS.—
the judgment of the President, qualified to perform
an allocation at the facility, and (iii) to the extent
possible, who maintain an office in the general geo-
graphic area of the facility.
‘‘(d) SELECTION OF ALLOCATOR.—As soon as prac-
ticable after the receipt of the initial list specified in sub-
section (c)(2), the potentially responsible parties prelimi-
narily identified by the President, voting on a per capita
basis, shall (1) select by plurality vote a person to serve
as allocator and then (2) promptly notify the President
of such selection. The allocator shall be selected from ei-
ther (A) the list of neutral parties provided by the Presi-
dent, or (B) a current list of neutrals maintained by the
American Arbitration Association, the Center for Public
Resources, the Administrative Conference of the United
States, or other non-profit or governmental organizations
of comparable standing. If the President determines that
the person selected is unqualified to serve, he shall
promptly notify all persons preliminarily identified as po-
tentially responsible parties at the facility, who shall then
select another person: Provided, however, That the Presi-
dent may make no more than two such determinations at
any facility. If the President does not receive notice that
an allocator has been selected within 60 days of the issu-
ance of the initial list specified in subsection (c)(2), or of
the receipt of notice of a determination under the preced-
ing sentence, then the President shall promptly designate
and select the person to serve as allocator. Any action
taken by the President under this paragraph shall not be
subject to judicial review.
‘‘(e) RETENTION OF ALLOCATOR.—Upon selection of
the allocator, the President shall promptly—
‘‘(1) contract with the selected allocator for the
provision of allocation services in accordance with
the provisions of this section, provided that such
contract shall not restrict the allocator’s broad dis-
cretion to conduct the allocation process in a fair, ef-
ficient, and impartial manner; and
‘‘(2) notify all persons preliminarily identified
as potentially responsible parties at the facility that
the allocator has been retained, and make available
to them, as well as to the allocator, within 30 days
of the selection of the allocator, all responses to in-
formation requests, as well as all other potentially
relevant information, concerning the facility and the
potentially responsible parties. The President shall
not make available any privileged or confidential in-
formation, except as otherwise authorized by law.
‘‘(f) ADDITIONAL PARTIES.—Within 60 days after
the later of (1) the issuance of the initial list specified
in subsection (c)(2), or (2) the retention of the allocator
under subsection (e), any person may propose to the allo-
cator the names of additional potentially responsible par-
ties at the facility, or otherwise provide the allocator with
information pertaining to the facility or to the allocation.
Any such proposal of additional parties shall include infor-
mation regarding the nexus between each additional po-
tentially responsible party and the facility, including such
information as would establish that such additional poten-
tially responsible party may not avail itself of the defenses
and exemptions set forth in section 107. The allocator
shall issue a final list of all parties that will be subject
to the allocation process, referred to in this section as the
‘‘allocation parties,’’ no later than 180 days after issuance
of the initial list specified in subsection (c)(2). The allo-
cator shall include in the final list of allocation parties
each additional party proposed pursuant to this para-
graph, unless the allocator reasonably determines that
such party is not potentially responsible under section 107
of this Act.
‘‘(g) FEDERAL, STATE, AND LOCAL AGENCIES.—
Notwithstanding any other provision of law, all Federal,
State, and local governmental departments, agencies, or
instrumentalities that are identified as potentially respon-
sible parties or allocation parties shall be subject to, and
be entitled to the benefits of, the allocation process and
allocation determination provided by this section to the
same extent as any other party.
‘‘(h) POTENTIALLY RESPONSIBLE PARTY SETTLE-
MENT.—At any time prior to the issuance of an allocation
report as described in subsection (i)(5), or of a second or
subsequent report as described in subsection (p), any
group of potentially responsible parties at the facility may
submit to the allocator a private allocation for the re-
sponse action(s) that are within the scope of the allocation
under subsection (a)(3). If such private allocation meets
the following criteria, the allocator shall promptly adopt
it as the allocation report:
‘‘(1) the private allocation is a binding alloca-
tion of 100 percent of the past, present, and future
costs of the response action(s);
‘‘(2) the private allocation does not allocate any
share to any person who is not a signatory to the
private allocation, unless the representative of the
Fund is a signatory to the private allocation; and
‘‘(3) the signatories to the private allocation
waive their rights to seek recovery of response costs
or contribution under this Act with respect to the re-
sponse action(s) from any other potentially respon-
sible parties at the facility.
‘‘(i) ALLOCATION DETERMINATION.—
‘‘(1) ALLOCATION
PROCESS.—The allocator
shall conduct an allocation process culminating in
the allocator’s issuance of a written report with a
nonbinding equitable allocation of percentage shares
of responsibility for the response action(s) that are
within the scope of the allocation under subsection
(a)(3), and shall provide such report to the alloca-
tion parties and the President.
‘‘(2) 
INFORMATION-GATHERING
AUTHORI-
TIES.—The allocator may request information from
any person, either on his own initiative or upon a
timely request by any person, in order to assist in
the efficient completion of the allocation process.
Subject to subsection (k), the allocator is authorized
to exercise the information-gathering authority con-
ferred upon the President under section 104(e) of
this Act. Notwithstanding any other provision of
law, the allocator shall not be considered an agency
of the United States Government subject to the re-
quirements of section 552 of title 5, United States
Code.
‘‘(3) ADDITIONAL AUTHORITIES.—The allocator
shall have the authority to schedule meetings and re-
quire the attendance of allocation parties at such
meetings; to impose sanctions against allocation par-
ties for failure to cooperate with the orderly conduct
of the allocation process; to require that allocation
parties wishing to present similar legal or factual po-
sitions consolidate their presentations; to obtain or
employ support services, including secretarial and
clerical services, computer support services, and legal
and investigative services; and to take any other ac-
tions necessary to conduct a cost-effective, fair, effi-
cient, and impartial allocation process.
‘‘(4) CONDUCT OF ALLOCATION PROCESS.—The
allocator shall conduct the allocation process and
render a decision based solely on the provisions of
this section, including the allocation factors specified
in subsection (j), in accordance with the decisions of
the courts of the United States. Each allocation
party shall be afforded an opportunity to be heard
(orally and/or in writing), and an opportunity to
comment on a draft allocation report. The allocator
shall not be required to respond to comments.
‘‘(5) ALLOCATION REPORT.—The allocator shall
provide the written allocation report to the allocation
parties and the President within 180 days of the is-
suance of the final list of allocation parties pursuant
to subsection (f). At the request of any allocation
party, for good cause shown, the allocator may ex-
tend the time to complete the report by up to 90
days.
‘‘(j) EQUITABLE FACTORS FOR ALLOCATION.—The
allocator shall prepare a nonbinding allocation of percent-
age shares of responsibility to all allocation parties in ac-
cordance with the provisions of this section and without
regard to any theory of joint and several liability, based
on the following equitable factors:
‘‘(1) The amount of hazardous substances con-
tributed by each allocation party.
‘‘(2) The degree of toxicity of the hazardous
substances contributed by each allocation party.
‘‘(3) The mobility of the hazardous substances
contributed by each allocation party.
‘‘(4) The degree of involvement of each alloca-
tion party in the generation, transportation, treat-
ment, storage, or disposal of the hazardous sub-
stances it contributed.
‘‘(5) The degree of care exercised by each allo-
cation party with respect to the hazardous sub-
stances it contributed, taking into account the char-
acteristics of the hazardous substances.
‘‘(6) In the case of an owner or operator, the
degree to which the allocation party caused, contrib-
that have not yet reached settlements with the
United States.
‘‘(2) The reimbursement shall be paid out dur-
ing the course of the response action(s) that were
the subject of the allocation. Reimbursement for the
construction portion of the work shall be paid out no
later than 120 days after completion of said con-
struction.
‘‘(3) The reimbursement is subject to equitable
offset or recoupment by the President at any time
if the allocation party fails to perform the work in
a proper and timely manner.
‘‘(4) The President may require independent
auditing of the claim for reimbursement.
‘‘(5) The allocation party waives its rights to
seek recovery of response costs in connection with
the response action(s), or contribution toward those
response costs, from any other person.
‘‘(6) The completion or the continuing satisfac-
tory performance of the response action required
under the administrative order shall bar any judicial
or administrative action by the United States or any
other person against the allocation party for matters
addressed in the administrative order unless the
United States or such person can establish that the