I
103D CONGRESS
1ST SESSION
H. R. 2242
To require the Administrator of the Environmental Protection Agency to
establish a program to encourage voluntary environmental cleanup of
facilities, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 24, 1993
Mr. SWIFT introduced the following bill; which was referred to the Committee
on Energy and Commerce
A BILL
To require the Administrator of the Environmental Protec-
tion Agency to establish a program to encourage vol-
untary environmental cleanup of facilities, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Voluntary Environ-
mental Cleanup Act of 1993’’.
SEC. 2. DEFINITIONS.
As used in this Act:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) AFFECTED SITE.—
(A) IN
GENERAL.—The term ‘‘affected
site’’ means a facility in a State that is deter-
mined by the State to have environmental con-
tamination that—
(i) could prevent the timely use, devel-
opment, or reuse of the facility; and
(ii) is limited in scope and can be
comprehensively and readily characterized.
(B) EXCEPTION.—Such term shall not in-
clude—
(i) any facility that is the subject of a
planned or an ongoing response action
under the Comprehensive Environmental
Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601 et seq.);
(ii) any facility included, or proposed
for inclusion, in the National Priorities
List maintained by the Administrator
under such Act;
(iii) any facility that is the subject of
a planned or ongoing corrective action
under section 3004(u) or 3008(h) of the
Solid Waste Disposal Act (42 U.S.C.
6924(u) or 6928(h)), including any facility
with respect to which a corrective action
permit or order has been issued or modi-
fied to require the implementation of cor-
rective measures;
(iv) any land disposal unit with re-
spect to which a closure notification under
subtitle C of the Solid Waste Disposal Act
(42 U.S.C. 6921 et seq.) has been submit-
ted and closure requirements have been
specified in a closure plan or permit;
(v) any facility that contains poly-
chlorinated biphenyls subject to response
under section 6(e) of the Toxic Substances
Control Act (15 U.S.C. 2605(e));
(vi) any facility with respect to which
an administrative order on consent or judi-
cial consent decree requiring cleanup has
been entered into by the President under
the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.), the Solid
Waste Disposal Act (42 U.S.C. 6901 et
seq.), the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.), the Toxic
Substances Control Act (15 U.S.C. 2601
et seq.) or title XIV of the Public Health
Service Act, commonly known as the Safe
Drinking Water Act (42 U.S.C. 300f et
seq.);
(vii) any facility owned or controlled
by, or that is the subject of a planned or
ongoing remediation of environmental con-
tamination by, a department, agency, or
instrumentality of the executive branch of
the Federal Government; and
(viii) any facility at which assistance
for response activities may be obtained
pursuant to subtitle I of the Solid Waste
Disposal Act (42 U.S.C. 6991 et seq.)
from the Leaking Underground Storage
Tank Trust Fund established under sec-
tion 9508 of the Internal Revenue Code of
1986.
(3) CONTAMINANT.—The term ‘‘contaminant’’
includes any hazardous substance, as defined in sec-
tion 101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601(14)) and petroleum-contaminated
soil or debris.
(4) CURRENT
OWNER.—The term ‘‘current
owner’’ means, with respect to a voluntary cleanup
of an affected site, an owner of the site that is an
owner at the time of the cleanup.
(5) DISPOSAL.—The term ‘‘disposal’’ has the
meaning provided the term in section 1004(3) of the
Solid Waste Disposal Act (42 U.S.C. 6903(3)).
(6) ENVIRONMENTAL
CONTAMINATION.—The
term ‘‘environmental contamination’’ means the ex-
istence at a facility of one or more contaminants
that may pose a health or environmental risk.
(7) FACILITY.—The term ‘‘facility’’ has the
meaning provided the term in section 101(9) of the
Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9601(9)).
(8) LOCAL
GOVERNMENT.—The term ‘‘local
government’’ means the governing body of a political
subdivision of a State, including the governing body
of any county, parish, municipality, city, town, town-
ship, Federally recognized Indian tribe, or similar
governing body.
(9) SITE CHARACTERIZATION.—
(A) IN GENERAL.—The term ‘‘site charac-
terization’’ means an investigation that deter-
mines the nature and extent of environmental
contamination at an affected site and meets the
requirements referred to in subparagraph (B).
(B) INVESTIGATION.—For the purposes of
this paragraph, an investigation that meets the
requirements of this subparagraph shall include
an onsite evaluation, and sufficient testing,
sampling, and other field data gathering activi-
ties, to accurately analyze whether the site is
contaminated and the health and environmental
risks posed by the environmental contamination
at the site. The investigation may also include
review of existing information (available at the
time of the review) and an offsite evaluation, if
appropriate.
(10) VOLUNTARY
CLEANUP.—The term ‘‘vol-
untary cleanup’’ means the remediation of environ-
mental contamination at an affected site undertaken
and financed by a current owner or prospective pur-
chaser subject to oversight and approval by a State.
SEC. 3. VOLUNTARY CLEANUP GRANT PROGRAM.
(a) IN GENERAL.—
(1) ESTABLISHMENT
OF
GRANT
PROGRAM.—
The Administrator shall establish a program to pro-
vide a grant to any State that submits an applica-
tion that is approved by the Administrator to estab-
lish or expand a State voluntary cleanup program
that meets the requirements of paragraph (3).
(2) CERTIFICATION.—In an application for a
grant under this section, a State shall be required
to certify that the voluntary cleanup program of the
State will meet the requirements of paragraph (3).
(3) REQUIREMENTS
FOR
STATE
VOLUNTARY
CLEANUP
PROGRAM.—A State voluntary cleanup
program meets the requirements of this paragraph if
the State—
(A) provides adequate opportunities for
public participation, including prior notice and
opportunity for comment, in selecting voluntary
cleanup actions;
(B) provides technical assistance through-
out each voluntary cleanup;
(C) provides adequate oversight and has
adequate enforcement authorities to ensure that
voluntary cleanups are completed in accordance
with all applicable Federal and State require-
ments, including any ongoing operation and
maintenance or long-term monitoring activities;
and
(D) requires the current owner or prospec-
tive purchaser of an affected site to pay all
costs incurred by the State for oversight of the
voluntary cleanup of the site.
(b) GRANT AWARDS.—
(1) IN GENERAL.—In carrying out the program
established under subsection (a), the Administrator
shall, subject to the availability of appropriations,
award a grant to the Governor of each State that
submits an application to the Administrator in ac-
cordance with subsection (a).
(2) GRANT AMOUNT.—The amount of a grant
awarded to any State under subsection (a) shall be
determined by the Administrator on the basis of the
financial need of the State for establishing or ex-
panding a voluntary cleanup program, and shall be
in an amount not less than $200,000, but not to ex-
ceed $500,000, for each fiscal year.
(3) REPORTING.—Each State that receives a
grant under subsection (a) shall submit to the Ad-
ministrator, not later than 2 years after receipt of
the grant, a progress report that includes a descrip-
tion of the cleanups made in accordance with the
voluntary cleanup program of the State.
(4) TERMINATION OF GRANTS.—If the Admin-
istrator determines that a State voluntary cleanup
program no longer meets the requirements of sub-
section (a)(3), the Administrator may terminate a
grant made to the State, and require full or partial
repayment of the grant award.
(c) STATE CERTIFICATION.—Each Governor of a
State that receives a grant under this section shall, not
later than 1 year after receipt of an initial grant, and an-
nually thereafter, submit to the Administrator a certifi-
cation that states—
(1) the State voluntary cleanup program meets
the criteria referred to in subsection (a);
(2) all cleanups achieved or undertaken pursu-
ant to the State voluntary cleanup program fully
comply with all applicable requirements of Federal
or State law;
(3) public participation opportunities have been
adequate during the process of selecting a cleanup
method for each voluntary cleanup;
(4) voluntary cleanups achieved or undertaken
pursuant to the State voluntary cleanup program
have been undertaken in a manner that has reduced
(1) GRANT AWARDS.—In carrying out the pro-
gram established under subsection (a), the Adminis-
trator may award a grant to the head of each local
government that submits to the Administrator an
application to conduct a site characterization at an
affected site within the jurisdiction of the local
government.
(2) GRANT APPLICATION.—An application for a
grant under this section shall—
(A) include a description of the affected
site;
(B) include information demonstrating the
financial need of the owner of the affected site
for funds to conduct a site characterization;
(C) include an analysis that demonstrates
the potential of the affected site for creating
new business and employment opportunities on
completion of the cleanup of the site; and
(D) provide such other information, and be
in such form, as the Administrator determines
appropriate to carry out this Act.
(3) APPROVAL OF APPLICATION.—
(A) IN GENERAL.—In making a decision
whether to approve an application submitted
under paragraph (1), the Administrator shall
consider—
(i) the financial need of the owner of
the affected site for funds to conduct a site
characterization;
(ii) the estimated fair market value of
the site after cleanup;
(iii) other economically viable, com-
mercial activity on real property—
(I) located within the immediate
vicinity of the affected site at the time
of consideration of the application; or
(II) projected to be located with-
in the immediate vicinity of the af-
fected site by the date that is 5 years
after the date of the consideration of
the application;
(iv) the potential of the affected site
for creating new business and employment
opportunities on completion of the cleanup
of the site;
(v) whether the affected site is located
in an economically distressed community;
and
(vi) such other factors as the Admin-
istrator considers relevant to carry out the
purposes of the grant program established
under this section.
(B) GRANT CONDITIONS.—As a condition
for awarding a grant under this section, the
Administrator may, on the basis of the criteria
considered under subparagraph (A), attach
such conditions to the grant award as the Ad-
ministrator determines appropriate.
(4) GRANT AMOUNT.—The amount of a grant
awarded to any local government under subsection
(a) for characterization of an affected site shall not
exceed $100,000.
(5) TERMINATION OF GRANTS.—If the Admin-
istrator determines that a local government that re-
ceives a grant under this subsection is in violation
of a condition of a grant award referred to in para-
graph (2), the Administrator may terminate the
grant made to the local government and require full
or partial repayment of the grant award.
SEC. 5. VOLUNTARY CLEANUP ASSISTANCE PROGRAM.
(a) IN GENERAL.—
(1) ESTABLISHMENT OF PROGRAM.—The Ad-
ministrator shall establish a program to provide a
loan to be used for the cleanup of affected sites to
an owner or a prospective purchaser of an affected
site (including a local government) at which a vol-
untary cleanup is being conducted or is proposed to
be conducted under a State voluntary cleanup pro-
gram that is the subject of a grant award under
section 3.
(2) DISQUALIFICATION.—If the Administrator
determines that an applicant has adequate resources
to conduct, in the absence of financial assistance
provided under this section, a cleanup that is the
subject of a loan application, the Administrator shall
not approve the application.
(b) SCOPE OF PROGRAM.—
(1) IN GENERAL.—
(A) 
LOANS.—The 
Administrator 
may
award a loan to be used to clean up an affected
site to each eligible applicant described in sub-
section (a)(1) that submits an application to the
Administrator that is approved by the Adminis-
trator.
(B) LOAN
APPLICATION.—An application
for a loan under this section shall be in such
form as the Administrator determines appro-
priate. At a minimum, the application shall in-
clude the following:
(i) A description of the affected site,
including the nature and extent of any
known or suspected environmental con-
tamination at the affected site and the
legal description of the real property asso-
ciated with the affected site.
(ii) A complete description of the fi-
nancial standing of the applicant that in-
cludes a description of the assets, cash
flow, and liabilities of the applicant.
(iii) A written certification that at-
tests that the applicant has attempted, and
has been unable, to secure financing from
a private lending institution for the clean-
up action that is the subject the loan appli-
cation. The certification shall specify the
name of each private lending institution to
which the applicant submitted an applica-
tion for a loan. With respect to each appli-
cation to such a lending institution, the
certification shall also specify—
(I) the date that the loan applica-
tion was submitted and the date that
the applicant was notified of the re-
fusal;
(II) the amount of the loan re-
quested;
(III) the terms of the loan re-
quested;
(IV) proof of the refusal of the
loan by the lending institution; and
(V) the reasons given, if any, by
the private lending institution for the
refusal of the loan for the cleanup.
(iv) A justification for the amount of
the financial assistance requested, includ-
ing evidence that the amount of financial
assistance requested by the applicant is not
available to the applicant through other
sources.
(v) The proposed method, and antici-
pated period of time required, to clean up
the environmental contamination at the af-
fected site.
(vi) An estimate of the proposed total
cost of the cleanup to be conducted at the
site.
(vii) An analysis that demonstrates
the potential of the affected site for creat-
ing new business and employment opportu-
nities on completion of the cleanup of the
site.
(2) LOAN APPROVAL.—In determining whether
to award a loan under this section, the Adminis-
trator shall consider—
(A) the need of the applicant for financial
assistance to clean up the affected site that is
the subject of the loan application, taking into
consideration the financial resources available
to the applicant;
(B) the ability of the applicant to repay
the loan in a timely manner;
(C) the inability of the applicant to secure
a loan from a private lending institution or
through other means of financing;
(D) the extent to which the cleanup of the
affected site would reduce health and environ-
mental risks caused by the environmental con-
tamination at, or from, the affected site;
(E) the estimated fair market value of the
affected site after cleanup;
(F) other economically viable, commercial
activity on real property—
(i) located in the immediate vicinity of
the affected site at the time of consider-
ation of the application; or
(ii) projected to be located within the
immediate vicinity of the affected site by
the date that is 5 years after the date of
the consideration of the application;
(G) the potential of the affected site for
creating new, or expanding existing, business
and employment opportunities on completion of
the cleanup of the site;
(H) the estimated additional tax revenues
expected to be generated at the site as a result
of the voluntary cleanup;
(I) whether the site is located in an eco-
nomically distressed community; and
(J) such other factors as the Administrator
considers relevant to carry out the purposes of
the loan program established under this section.
(3) LOAN
AMOUNT.—The amount of a loan
made to an applicant under this section shall not ex-
ceed—
(A) 75 percent of the cost of the cleanup
that is the subject of the loan; or
(B) $750,000,
whichever is less.
(4) STATE APPROVAL.—Each application for a
loan under this section shall, as a condition for ap-
proval by the Administrator, include a written state-
ment by the State under whose voluntary program
the voluntary cleanup is being conducted, or pro-
posed to be conducted that—
(A) the voluntary cleanup or proposed vol-
untary cleanup is cost effective; and
(B) the estimated total cost of the vol-
untary cleanup is reasonable.
(c) LOAN AGREEMENTS.—Each loan under this sec-
tion shall be made pursuant to a loan agreement. At a
minimum, the loan agreement shall include provisions that
address the following items:
(1)(A) The loan shall bear interest at the appli-
cable rate specified in subparagraphs (B) through
(D).
(B) For local government entities, the rate of
interest shall be 1 percentage point below the aver-
age current yield on marketable obligations of the
United States Treasury having comparable matu-
rities.
(C) For prospective purchasers of an affected
site, the rate of interest shall be 1 percentage point
above the average current yield on marketable obli-
gations of the United States Treasury having com-
parable maturities.
(D) For current owners of an affected site, the
rate of interest shall be 2 percentage points above
the average current yield on marketable obligations
of the United States Treasury having comparable
maturities.
(2) The maturity period of the loan (as deter-
mined by the Administrator) shall not exceed 10
years.
(3) The repayment of the loan during the matu-
rity period shall be in accordance with any schedule
for payments that the Administrator may specify in
the loan agreement.
(4) Each payment referred to in this section
shall be made to the Secretary of the Treasury for
deposit in the general fund of the Treasury.
(5) If the sale or redevelopment of the affected
site results in a net profit to the applicant (taking
into consideration any amount of reimbursement
that may be required under this paragraph) in an
amount greater than or equal to 10 percent, in addi-
tion to paying interest on the loan (as specified in
paragraph (1)), the applicant shall make a payment
to reimburse the Federal Government for the full
and actual costs incurred by the Federal Govern-
ment of making the loan to the applicant, including
any administrative costs.
(6) The applicant shall comply with all applica-
ble Federal and State laws (including regulations
promulgated pursuant to such laws) applicable to
the cleanup and shall proceed in accordance with
any voluntary cleanup program in effect in the
State.
(7) The applicant shall guarantee repayment of
the loan.
(8) The applicant shall use the loan solely for
purposes of cleaning up the environmental contami-
nation at the affected site, and shall return any ex-
cess funds to the Administrator immediately on a
determination by the Administrator that the cleanup
has been completed.
(9) The loan shall not be transferable, unless
the Administrator agrees to the transfer in writing.
(10) Such other terms and conditions that the
Administrator determines necessary to protect the fi-
nancial interests of the United States.
(d) FEDERAL LIEN.—
(1) IN GENERAL.—A lien in favor of the United
States shall arise on the contaminated property sub-
ject to a loan under this section. The lien shall cover
all real property included in the legal description of
the property at the time the loan agreement pro-
vided for in this section is signed, and all rights to
the property, and shall continue until the terms and
conditions of the loan agreement have been fully sat-
isfied. The lien shall arise at the time the United
States grants a loan under this section, and shall
not be subject to the rights of any purchaser, holder
of a security interest, or judgment lien creditor
whose interest is or has been perfected under appli-
cable State law, except that any interest held by the
United States as security for a loan under this sec-
tion shall be subordinate to any lien on the property
for taxes due on the property to a State or political
subdivision thereof.
(2) DEFINITIONS.—As used in this paragraph,
the terms ‘‘security interest’’ and ‘‘purchaser’’ shall
have the meaning provided the terms in paragraphs
(1) and (6), respectively, under section 6323(h) of
the Internal Revenue Code of 1986.
(e) ENFORCEMENT.—
(1) IN GENERAL.—If any owner or prospective
purchaser who receives a loan under this section
fails to comply with any condition of a loan agree-
ment entered into pursuant to this section, the Ad-
ministrator may request the Attorney General of the
United States to commence a civil action in an ap-
propriate district court of the United States to en-
force the loan agreement.
(2) JURISDICTION OF DISTRICT COURT.—The
district court shall have jurisdiction to enforce the
loan agreement and grant such relief as the public
interest and the equities of the case may require.
SEC. 6. REGULATIONS.
The Administrator shall promulgate such regulations
as are necessary to carry out this Act. The regulations
shall include the procedures and standards that the Ad-
ministrator considers necessary, including procedures and
standards for evaluating an application for a grant or loan
submitted under this Act.
SEC. 7. AUTHORIZATIONS OF APPROPRIATIONS.
(a) VOLUNTARY CLEANUP GRANT PROGRAM.—There
are authorized to be appropriated to the Environmental
Protection Agency, to carry out section 3, an amount not
to exceed $15,000,000 for fiscal year 1994, and
$7,500,000 for each of fiscal years 1995 through 1997.
(b) SITE CHARACTERIZATION PROGRAM.—There are
authorized to be appropriated to the Environmental Pro-
tection Agency, to carry out section 4, an amount to ex-
ceed $15,000,000 for each of fiscal years 1994 through
1997.
(c) VOLUNTARY CLEANUP ASSISTANCE PROGRAM.—
There are authorized to be appropriated to the Environ-
mental Protection Agency, to carry out section 5, an
amount to exceed $15,000,000 for each of fiscal years
1994 through 1997.
(d) AVAILABILITY OF FUNDS.—The amounts appro-
priated pursuant to this section shall remain available
until expended.
SEC. 8. REPORT.
(a) IN GENERAL.—Not later than 1 year after the
date of enactment of this Act, and not later than January
31 of each of the succeeding 3 calendar years thereafter,
the Administrator shall prepare and submit a report to
the Committee on Environment and Public Works of the
Senate and the Committee on Energy and Commerce of
the House of Representatives describing the achievements
of each grant or loan program established under this Act.
(b) CONTENTS OF REPORT.—The report shall, with
respect to the programs established under this Act, include
a description of—
(1) the number of grant and loan applications
received by the Administrator during the preceding
calendar year;
(2) the number of grants and loans disapproved
during the preceding year, and the reasons for dis-
approval;
(3) the number of grants and loans approved by
the Administrator during the preceding calendar
year;
(4) the amount of grants and loans made dur-
ing the preceding year, and an estimate of the total
cleanup costs incurred by parties receiving a loan
under the voluntary cleanup assistance program;
(5) with respect to each voluntary cleanup pro-
gram of a State that was the subject of a grant
under section 3—
(A) the purposes to which the grant
awarded to the State was applied; and
(B) the achievements of the program;
(6) the affected sites identified by local govern-
ments and the status of cleanup of such sites; and
(7) the affected sites at which a cleanup was
initiated pursuant to the voluntary cleanup assist-
ance program under section 5, and the status of
cleanup and beneficial reuse of such sites.
SEC. 9. FUNDING.
(a) ELIGIBLE COSTS DEFINED.—For the purposes of
each grant and loan program established under this Act,
the term ‘‘eligible costs’’ shall include administrative and
nonadministrative costs.
(b) NONADMINISTRATIVE COSTS.—As used in this
section, the term ‘‘nonadministrative costs’’ shall include
the cost of—
(1) oversight for a cleanup by contractor,
owner, or prospective purchaser;
(2) identifying the probable extent and nature
of environmental contamination at an affected site,
and the preferred manner of carrying out a cleanup
at an affected site;
(3) each cleanup, including onsite and offsite
treatment of contaminants; and
(4) monitoring ground water or other natural
resources.
(c) ADMINISTRATIVE COST LIMITATION.—Not more
that 15 percent of the amount of a grant or loan made
pursuant to this Act may be used for administrative costs.
No grant or loan made pursuant to this Act may be used
to pay for fines or penalties owed to a State or the Federal
Government.
(d) OTHER LIMITATIONS.—Funds made available to
a State pursuant to the grant program established under
section 3 shall be used only for establishing or administer-
ing a voluntary cleanup program.
SEC. 10. STATUTORY CONSTRUCTION.
Nothing in this Act is intended to affect the liability
or response authorities of any other law (including any
regulation) for environmental contamination including the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601 et. seq.), the
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), the
Federal Water Pollution Control Act (33 U.S.C. 1251 et
seq.), the Toxic Substances Control Act (15 U.S.C. 2601
et seq.), or title XIV of the Public Health Service Act,
commonly known as the ‘‘Safe Drinking Water Act’’ (42
U.S.C. 300f et seq.).
Æ
HR 2242 IH——2
HR 2242 IH——3