demonstrate by a preponderance of the evidence that
at the time of the transaction—
‘‘(A) the person met the criteria set forth
in subsection (c) with respect to the spent lead-
acid batteries, spent nickel-cadmium batteries,
or other spent batteries, but did not recover the
valuable components of such batteries; and
‘‘(B)(i) with respect to transactions involv-
ing lead-acid batteries, the person was in com-
pliance with applicable Federal environmental
regulations or standards, and any amendments
thereto, regarding the storage, transport, man-
agement, or other activities associated with the
recycling of spent lead-acid batteries;
‘‘(ii) with respect to transactions involving
nickel-cadmium 
batteries, 
Federal 
environ-
mental regulations or standards are in effect re-
garding the storage, transport, management, or
other activities associated with the recycling of
spent nickel-cadmium batteries, and the person
was in compliance with applicable regulations or
standards or any amendments thereto; or
‘‘(iii) with respect to transactions involving
other spent batteries, Federal environmental
regulations or standards are in effect regarding
the storage, transport, management, or other
activities associated with the recycling of such
batteries, and the person was in compliance
with applicable regulations or standards or any
amendments thereto.
‘‘(2) For purposes of paragraph (1)(A), a per-
son who, by contract, arranges or pays for process-
ing of batteries by an unrelated third person and re-
ceives from such third person materials reclaimed
from such batteries shall not thereby be deemed to
recover the valuable components of such batteries.
‘‘(f) EXCLUSIONS.—
‘‘(1) The exemptions set forth in subsections
(c), (d), and (e) shall not apply if—
‘‘(A) the person had an objectively reason-
able basis to believe at the time of the recycling
transaction—
‘‘(i) that the recyclable material would
not be recycled;
‘‘(ii) that the recyclable material
would be burned as fuel, or for energy re-
covery or incineration; or
‘‘(iii) for transactions occurring before
90 days after the date of the enactment of
this section, that the consuming facility
was not in compliance with a substantive
(not procedural or administrative) provi-
sion of any Federal, State, or local envi-
ronmental law or regulation, or compliance
order or decree issued pursuant thereto,
applicable to the handling, processing, rec-
lamation, or other management activities
associated with the recyclable material;
‘‘(B) the person had reason to believe that
hazardous substances had been added to the re-
cyclable material for purposes other than proc-
essing for recycling;
‘‘(C) the person failed to exercise reason-
able care with respect to the management and
handling of the recyclable material (including
adhering to customary industry practices cur-
rent at the time of the recycling transaction de-
signed to minimize, through source control, con-
tamination of the recyclable material by hazard-
ous substances); or
‘‘(D) with respect to any item of a recycla-
ble material, the item—
‘‘(i) 
contained 
polychlorinated
biphenyls at a concentration in excess of
50 parts per million or any new standard
promulgated pursuant to applicable Fed-
eral laws; or
‘‘(ii) is an item of scrap paper con-
taining at the time of the recycling trans-
action a concentration of a hazardous sub-
stance that has been determined by the
Administrator, after notice and comment,
to present a significant risk to human
health or the environment in light of the
nature of scrap paper management and re-
cycling.
‘‘(2) For purposes of this subsection, an objec-
tively reasonable basis for belief shall be determined
using criteria that include (but are limited to) the
size of the person’s business, customary industry
practices (including customary industry practices
current at the time of the recycling transaction de-
signed to minimize, through source control, contami-
nation of the recyclable material by hazardous sub-
stances), the price paid in the recycling transaction,
and the ability of the person to detect the nature of
the consuming facility’s operations concerning its
handling, processing, reclamation, or other manage-
ment activities associated with the recyclable mate-
rial.
‘‘(3) For purposes of this subsection, a require-
ment to obtain a permit applicable to the handling,
processing, reclamation, or other management activi-
ties associated with recyclable material shall be
deemed to be a substantive provision.
‘‘(g) EFFECT
ON OTHER LIABILITY.—Nothing in
this section shall be deemed to affect the liability of a per-
son under paragraph (1) or (2) of section 107(a).
‘‘(h) REGULATIONS.—The Administrator has the au-
thority, under section 115, to promulgate additional regu-
lations concerning this section.
‘‘(i) EFFECT
ON PENDING
OR CONCLUDED AC-
TIONS.—The exemptions provided in this section shall not
affect any concluded judicial or administrative action or
any pending judicial action initiated by the United States
prior to enactment of this section.
‘‘(j) LIABILITY FOR ATTORNEY’S FEES FOR CERTAIN
ACTIONS.—Any person who commences an action in con-
tribution against a person who is not liable by operation
of this section shall be liable to that person for all reason-
able costs of defending that action, including all reason-
able attorney’s and expert witness fees.
‘‘(k) RELATIONSHIP TO LIABILITY UNDER OTHER
LAWS.—Nothing in this section shall affect—
‘‘(1) liability under any other Federal, State, or
local statute or regulation promulgated pursuant to
any such statute, including any requirements pro-
mulgated by the Administrator under the Solid
Waste Disposal Act; or
‘‘(2) the ability of the Administrator to promul-
gate regulations under any other statute, including
the Solid Waste Disposal Act.’’.
(b) TECHNICAL AMENDMENT.—The table of contents
for title I of such Act is amended by adding at the end
the following item:
‘‘SEC. 127. Recycling transactions.’’.
Æ