a product made, in whole or in part, from a virgin
raw material.
‘‘(5) For transactions occurring 90 days or
more after the date of enactment of this section, the
person exercised reasonable care to determine that
the facility where the recyclable material would be
handled, processed, reclaimed, or otherwise managed
by another person (hereinafter in this section re-
ferred to as a ‘consuming facility’) was in compli-
ance with substantive (not procedural or administra-
tive) provisions of any Federal, State, or local envi-
ronmental law or regulation, or compliance order or
decree issued pursuant thereto, applicable to the
handling, processing, reclamation, storage, or other
management activities associated with the recyclable
material.
‘‘(6) For purposes of this subsection, ‘reason-
able care’ shall be determined using criteria that in-
clude (but are not limited to) (A) the price paid in
the recycling transaction; (B) the ability of the per-
son to detect the nature of the consuming facility’s
operations concerning its handling, processing, rec-
lamation, or other management activities associated
with the recyclable material; and (C) the result of
inquiries made to the appropriate Federal, State, or
local environmental agency (or agencies) regarding
the consuming facility’s past and current compliance
with substantive (not procedural or administrative)
provisions of any Federal, State, or local environ-
mental law or regulation, or compliance order or de-
cree issued pursuant thereto, applicable to the han-
dling, processing, reclamation, storage, or other
management activities associated with the recyclable
material. For the purposes of this paragraph, a re-
quirement to obtain a permit applicable to the han-
dling, processing, reclamation, or other management
activity associated with the recyclable materials shall
be deemed to be a substantive provision.
‘‘(d) TRANSACTIONS INVOLVING SCRAP METAL.—
‘‘(1) Transactions involving scrap metal shall be
deemed to be arranging for recycling if the person
who arranged for the transaction (by selling recycla-
ble material or otherwise arranging for the recycling
of recyclable material) can demonstrate by a prepon-
derance 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 scrap
metal;
‘‘(B) the person was in compliance with
any applicable regulations or standards regard-
ing the storage, transport, management, or
other activities associated with the recycling of
scrap metal that the Administrator promulgates
under the Solid Waste Disposal Act subsequent
to the enactment of this section and with re-
gard to transactions occurring after the effec-
tive date of such regulations or standards; and
‘‘(C) the person did not melt the scrap
metal prior to the transaction.
‘‘(2) For purposes of paragraph (1)(C), melting
of scrap metal does not include the thermal separa-
tion of 2 or more materials due to differences in
their melting points (referred to as ‘sweating’).
‘‘(3) For the purposes of this subsection, the
term ‘scrap metal’ means bits and pieces of metal
parts (e.g., bars, turnings, rods, sheets, wire) or
metal pieces that may be combined together with
bolts or soldering (e.g., radiators, scrap automobiles,
railroad box cars), which when worn or superfluous
can be recycled, except for scrap metals that the Ad-
ministrator excludes from this definition by regula-
tion and steel shipping containers of a capacity from
30 liters to and including 3,000 liters, whether in-
tact or not, having any hazardous substance (but
not metal bits or pieces) contained in or adhering
thereto.
‘‘(e) TRANSACTIONS INVOLVING BATTERIES.—(1)
Transactions involving spent lead-acid batteries, spent
nickel-cadmium batteries or other spent batteries shall be
deemed to be arranging for recycling if the person who
arranged for the transaction (by selling recyclable material
or otherwise arranging for the recycling of recyclable ma-
terial) can demonstrate by a preponderance of the evi-
dence 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 com-
ponents of such batteries; and
‘‘(B)(i) with respect to transactions involving
lead-acid batteries, the person was in compliance
with applicable Federal environmental regulations or
standards, and any amendments thereto, regarding
the storage, transport, management, or other activi-
ties associated with the recycling of spent lead-acid
batteries;
‘‘(ii) with respect to transactions involving nick-
el-cadmium batteries, Federal environmental regula-
tions or standards are in effect regarding the stor-
age, transport, management, or other activities asso-
ciated with the recycling of spent nickel-cadmium
batteries, and the person was in compliance with ap-
plicable regulations or standards or any amendments
thereto; or
‘‘(iii) with respect to transactions involving
other spent batteries, Federal environmental regula-
tions or standards are in effect regarding the stor-
age, transport, management, or other activities asso-
ciated 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) of this sub-
section, a person who, by contract, arranges or pays for
processing of batteries by an unrelated third person and
receives 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 reasonable
basis to believe at the time of the recycling trans-
action—