556
nicipal solid waste or sewage sludge as
part of normal municipal solid waste col-
lection services, and, regardless of when
generated, would be considered condi-
tionally exempt small quantity generator
waste under section 3001(d) of the Solid
Waste Disposal Act (42 U.S.C. 6921(d)).
Examples of municipal solid waste in-
clude food and yard waste, paper, cloth-
ing, appliances, consumer product pack-
aging, disposable diapers, office supplies,
cosmetics, glass and metal food contain-
ers, 
elementary 
or 
secondary 
school
science laboratory waste, and household
hazardous waste. The term does not in-
clude combustion ash generated by re-
source recovery facilities or municipal in-
cinerators, or waste from manufacturing
or processing (including pollution con-
trol) operations not essentially the same
as waste normally generated by house-
holds.
‘‘(42) MUNICIPALITY.—The term ‘mu-
nicipality’ means a political subdivision
of a State, including a city, county, vil-
557
lage, town, township, borough, parish,
school district, sanitation district, water
district, or other public entity performing
local governmental functions. The term
also includes a natural person acting in
the capacity of an official, employee, or
agent of any entity referred to in the pre-
ceding sentence in the performance of
governmental functions.
‘‘(43) QUALIFIED
HOUSEHOLD
HAZARD-
OUS
WASTE
COLLECTION
PROGRAM.—The
term 
‘qualified 
household 
hazardous
waste collection program’ means a pro-
gram established by an entity of the Fed-
eral Government, a State, a municipality,
or an Indian tribe that provides, at a
minimum, for semiannual collection of
household hazardous wastes at acces-
sible, well-publicized collection points
within the relevant jurisdiction.
‘‘(44) SEWAGE SLUDGE.—The term ‘sew-
age sludge’ means solid, semisolid, or liq-
uid residue removed during the treat-
ment of municipal waste water, domestic
sewage, or other waste water at or by
558
publicly owned or federally owned treat-
ment works.
‘‘(45) 
SITE
CHARACTERIZATION.—The
term ‘site characterization’ means an in-
vestigation that determines the nature
and extent of a release or potential re-
lease of a hazardous substance, pollutant,
or contaminant, and that includes an on
site evaluation and sufficient testing,
sampling, and other field data gathering
activities to analyze whether there has
been a release or threat of a release of a
hazardous substance, pollutant, or con-
taminant, and the health and environ-
mental risks posed by such a release or
threat of release. The investigation also
may include review of existing informa-
tion (available at the time of the review),
an off-site evaluation, or other measures
that the Administrator considers appro-
priate.
‘‘(46) OWNER, OPERATOR, OR LESSEE OF
RESIDENTIAL PROPERTY.—The term ‘owner,
operator, or lessee of residential prop-
erty’ refers to a person who owns, oper-
559
ates, manages, or leases residential prop-
erty and who uses or allows the use of
the residential property exclusively for
residential purposes. The term ‘residen-
tial property’ refers to single or multi-
family residences, including accessory
land, buildings, or improvements inciden-
tal to such dwellings, which are exclu-
sively for residential use.
‘‘(47) 
SMALL
BUSINESS.—The 
term
‘small business’ refers to any business en-
tity that employs no more than 100 indi-
viduals and is a ‘small business concern’
as defined under the Small Business Act
(15 U.S.C. 631 et seq.).
‘‘(48) 
SMALL
NONPROFIT
ORGANIZA-
TION.—The term ‘small nonprofit organi-
zation’ means any organization that, at
the time of disposal, did not distribute
any part of its income or profit to its
members, directors, or officers, employed
no more than 100 paid individuals at the
involved chapter, office, or department,
and was recognized as a non-profit orga-
560
nization under section 501(c) of the Inter-
nal Revenue Code of 1986.
‘‘(49) SMALL
BUSINESS
CONSTRUCTION
CONTRACTOR.—The term ‘small business
construction contractor’ means a person
who—
‘‘(A) is a small business as defined
by paragraph (47);
‘‘(B) is not a response action con-
tractor, 
as 
defined 
by 
section
119(e)(2), for the release or threat-
ened release concerned;
‘‘(C) did not know or have reason
to know of the presence of hazardous
substances at the facility before be-
ginning construction activities; and
‘‘(D) exercised due care with re-
spect to any hazardous substances
discovered during the course of per-
forming construction activities.’’.
SEC. 607. RESPONSE CLAIMS PROCEDURES.
(a) AMENDMENT OF SECTION 111.—Section
111(a)(2) (42 U.S.C. 9611(a)(2)) is amended by
inserting after ‘‘under said plan’’ the phrase
‘‘, reasonable in amount based on open and
561
free competition or fair market value for simi-
lar available goods and services,’’.
(b) AMENDMENT OF SECTION 112.—Section
112(a) (42 U.S.C. 9612(a)(2)) is amended—
(1) in the first sentence, by adding
after ‘‘unless such claim is’’ the following:
‘‘(1) accompanied by an audit prepared
by an independent, certified public ac-
countant, and (2)’’; and
(2) by inserting after the first sen-
tence the following: ‘‘The Administrator
reserves the right to review such audits
to determine that the costs for which the
claimant is seeking reimbursement are
consistent with section 111(a) and, where
necessary, withhold claims or a portion
thereof which are inconsistent with sec-
tion 111(a).’’.
SEC. 608. SMALL BUSINESS OMBUDSMAN.
The Administrator of the Environmental
Protection Agency shall establish a small
business Superfund assistance section within
the small business ombudsman office at the
Environmental Protection Agency. Such sec-
tion shall carry out the following functions:
562
(1) Act as a clearinghouse of informa-
tion for small businesses regarding the
Comprehensive Environmental Response,
Compensation, and Liability Act of 1980.
Such information shall be comprehen-
sible to a lay person and shall include in-
formation regarding the allocation proc-
ess under section 130 of such Act, re-
quirements and procedures for expedited
settlements pursuant to section 122(g) of
such Act, de minimis and de micromis
status, and ability-to-pay procedures.
(2) Provide general advice and assist-
ance to small businesses as to their ques-
tions and problems concerning the alloca-
tion and settlement processes, except
that such advice and assistance shall not
include any legal advice as to liability or
any other legal representation. The om-
budsman shall not participate in the allo-
cation process.
(3) Develop proposals and make rec-
ommendations for changes in policies
and activities of the Environmental Pro-
tection Agency which would better fulfill
563
the goals of title IV of the Superfund Re-
form Act of 1994 in ensuring equitable,
simplified, and expedited allocations and
settlements for small businesses.
SEC. 
609. 
CONSIDERATION 
OF 
LOCAL 
GOVERNMENT
CLEANUP PRIORITIES.
Section 104(c)(2) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(2) by adding at the end the following
new subparagraph:
‘‘(B) In setting priorities for scheduling
work and allocating oversight resources for a
remedial action at a facility at which a poten-
tially responsible party that is a State or local
government proposes to carry out the reme-
dial action (or a portion thereof), the Adminis-
trator should give higher priority to such re-
medial action (or portion thereof) if the State
or local government demonstrates that the re-
medial action (i) will have a public benefit;
and (ii) will result in the property on or adja-
cent to the facility being returned to produc-
tive use. A private potentially responsible
party may request similar consideration, in
the Administrator’s discretion. Nothing in
564
this subparagraph shall affect the responsibil-
ity of the Administrator to schedule and over-
see the conduct of remedial action so as to as-
sure protection of human health and the envi-
ronment.’’.
SEC. 610. CONSISTENT APPLICATION AMONG REGIONAL
OFFICES.
Section 115 (42 U.S.C. 9615), as amended
by section 407, is further amended as follows:
(1) By inserting the following imme-
diately before ‘‘The President’’: ‘‘(a) PRESI-
DENTIAL RULEMAKING AND DELEGATION AU-
THORITY.—’’.
(2) By inserting at the end thereof the
following new subsection:
‘‘(b) CONSISTENT APPLICATION AMONG RE-
GIONAL
OFFICES.—Each Regional Adminis-
trator should implement, execute, and enforce
this Act and regulations, guidance, and poli-
cies established in accordance with this Act
by (1) the President (or by the Administrator
pursuant to a delegation from the President),
or (2) the Administrator (or by the Deputy Ad-
ministrator or an Assistant Administrator
565
pursuant to a delegation from the Adminis-
trator).’’.
SEC. 611. STUDY OF PARTICIPANTS.
(a) STUDY.—The Administrator shall un-
dertake a study of current Environmental
Protection Agency procedures for suspension
and debarment of persons and business enti-
ties, particularly response action contractors
and to assess the feasibility and cost of creat-
ing a nationwide data base to track such per-
sons. The study shall include, but shall not be
limited, to the following items:
(1) Whether the certification process
pursuant to 40 CFR 32 regarding debar-
ment and suspensions is sufficient to un-
cover those persons who have previously
served as a principal of a business entity
affiliated or unaffiliated with the certify-
ing entity.
(2) Whether the 3-year period for cer-
tification is a sufficient length of time to
uncover past activities.
(3) Whether the process under Fed-
eral regulations for determining false
certification is sufficient, particularly for
566
those persons who are attempting to hide
past debarment or suspension.
(4) The effectiveness of the current
debarment and suspension procedures.
(5) The practicability of coordination,
through a central data base, with other
Federal agencies the tracking and shar-
ing of data on such persons who have
been debarred or suspended.
(6) The effectiveness of debarment
and suspension on the future conduct of
persons or business entities with regard
to compliance with Federal and State en-
vironmental laws.
(7) The extent of sharing data within
the Environmental Protection Agency
and among its regional offices.
(8) The cost of creating a central data
base.
(b) REPORT AND RECOMMENDATIONS.—The
Administrator shall report the findings of this
study to Congress within 12 months after the
enactment of this Act. The Administrator
shall also make a recommendation to Con-
gress whether statutory language or further
567
regulations are necessary to correct any prob-
lems or deficiencies that may be uncovered.
SEC. 612. PUBLIC COMMENT.
Nothing in this Act or any amendments
made by this Act shall limit the obligations of
the President or the Administrator to fully
consider and respond to public comments
during any available comment period or oth-
erwise abridge the requirements of sub-
chapter II of chapter 5 of title 5, United States
Code (commonly referred to as the Adminis-
trative Procedures Act).
SEC. 613. CERTIFICATION OF ENVIRONMENTAL TRAINING
AND CERTIFICATION ORGANIZATIONS.
(a) REGULATIONS.—(1) Not later than 2
years after enactment of this Act, the Admin-
istrator of the Environmental Protection
Agency shall publish guidelines, in accord-
ance with subsection (b), for a model State
program for organizations that train and cer-
tify individuals to perform Phase I Environ-
mental Site Assessments.
(2) The guidelines published under para-
graph (1) may include, but not be limited to,
minimum standards relating to—
568
(A) formal environmental training;
(B) continuing environmental edu-
cation;
(C) environmental certification and
testing procedures;
(D) revocation and disciplinary pro-
cedures;
(E) establishment of a code of ethics;
(F) consumer education;
(G) certification renewal procedures;
and
(H) annual reporting of program ac-
tivities.
(b) ESTABLISHMENT OF THE ENVIRONMENTAL
CERTIFICATION BOARD.—(1) Not later than 60
days after enactment of this Act, the Adminis-
trator of the Environmental Protection Agen-
cy shall establish a certification advisory
board to be known as the ‘‘Environmental
Certification Board’’ (hereafter in this section
referred to as the ‘‘Board’’).
(2) The Board shall consist of a minimum
of 6 members, appointed by the Adminis-
trator, with a demonstrated knowledge in the
environmental field. The Board may include
569
representatives from the Environmental Pro-
tection Agency, environmental interest orga-
nizations, the chemical/manufacturing indus-
try, the environmental consulting service in-
dustry, the insurance industry, the banking/
investment industry, professional societies,
private sector accreditation organizations,
State government, and other appropriate rep-
resentatives with a knowledge in the environ-
mental field.
(3) All members of the Board shall serve
on a voluntary basis, except those members
from the Environmental Protection Agency.
(4) The Board shall appoint 1 member to
serve as Chairman of the Board who shall ex-
ercise the executive and administrative func-
tions of the Board.
(5) Not later than 6 months after the date
of enactment of this Act, the Board shall issue
recommendations to the Administrator which
shall include, but not be limited to, the mini-
mum standards to be established under sub-
section (a).
(c) STATE ADOPTION OF REGULATIONS.—(1)
After the publication of the guidelines under
571
that individual also meets the requirements
of the State licensing statute.
(d) DETERMINATION OF COMPLIANCE.—(1) If
a State adopts the guidelines issued by the
Administrator, any organization that seeks to
obtain a determination of compliance with
the regulations set forth in subsection (c) may
submit to any such State, in which the organi-
zation is located, information documenting
such compliance.
(2) Such State shall make the determina-
tion of such organization’s compliance or non-
compliance with such regulations.
(3) Upon a determination of compliance
under paragraph (2), the State shall issue no-
tice in writing to such organization, indicat-
ing that such organization is an ‘‘Approved
Phase I Environmental Training and Certifi-
cation Organization’’ in accordance with this
Act. Such approval shall be valid for a term
to be set by the State, but no longer than 5
years.
(4) A State may charge a reasonable fee,
equal to the cost of determining compliance
under paragraph (2), to each organization
572
that applies for such determination. Any such
fees shall be listed as part of the regulations
promulgated under subsection (c).
(5) Any organization that has received no-
tice of a determination of compliance from a
State under paragraph (3), may issue a di-
ploma, certification, or other form of degree,
to any individual who has completed to its
satisfaction such organization’s curriculum
and training program signifying that the re-
cipient is a ‘‘Certified Phase I Environmental
Professional’’ qualified to perform Phase I En-
vironmental Site Assessments.
(6) A State may periodically, or upon expi-
ration of a notification of a determination of
compliance under paragraph (3), review the
program, curriculum, facilities, and training
methods of any such organization to deter-
mine such organizations continued compli-
ance with the regulations promulgated under
subsection (c).
(e) DEFINITIONS.—For purposes of this sec-
tion:
(1) PHASE
I
ENVIRONMENTAL
SITE
AS-
SESSMENT.—The term ‘‘Phase I Environ-
573
mental Site Assessment’’ means the proc-
ess by which a person or entity seeks to
determine whether a particular parcel of
real property is subject to recognized en-
vironmental conditions. These conditions
indicate the presence or likely presence
of a hazardous substance or pollutant or
contaminant on a property under condi-
tions that indicate the existence of a re-
lease or threatened release at the facility
into structures on the property or into
the ground, ground water or surface
water of the property.
(2) CERTIFIED PHASE I ENVIRONMENTAL
PROFESSIONAL.—The 
term 
‘‘Certified
Phase 
I 
Environmental 
Professional’’
means any person receiving certification
to perform Phase I Environmental Site
Assessments from an approved environ-
mental training and certification organi-
zation in accordance with this section.
(3) APPROVED PHASE I ENVIRONMENTAL
TRAINING
AND
CERTIFICATION
ORGANIZA-
TION.—The term ‘‘Approved Phase I Envi-
ronmental Training and Certification Or-
574
ganization’’ 
means 
Phase 
I 
Environ-
mental Training and Certification Orga-
nization whose curriculum, program, fa-
cilities, training, and testing methods
comply with the regulations adopted by a
State under this section.
SEC. 614. SAVINGS CLAUSE.
Nothing in this Act or any amendment
made by this Act shall affect the application
of the Atomic Energy Act of 1954 to any facil-
ity licensed by the Nuclear Regulatory Com-
mission.
SEC. 615. FEDERAL ENTITIES AND FACILITIES.
Section 120 (42 U.S.C. 9620) is amended as
follows:
(1) By amending the heading to read
as follows:
‘‘SEC. 120. FEDERAL ENTITIES AND FACILITIES.’’.
(2) By amending paragraph (1) of sub-
section (a) to read as follows:
‘‘(1)(A) Each department, agency, and
instrumentality of the executive, legisla-
tive, and judicial branches of the United
States shall be subject to, and comply
with, all Federal, State, interstate and
575
local requirements, both substantive and
procedural (including any requirements
for permits, reporting, or any provisions
for injunctive relief and such sanctions
as may be imposed by a court to enforce
such relief), regarding response actions
related to, or management of, hazardous
substances, pollutants, or contaminants
in the same manner, and to the same ex-
tent, as any nongovernmental entity is
subject to such requirements, including
enforcement and liability under sections
106 and 107 of this title and the payment
of reasonable service charges.
‘‘(B) The Federal, State, interstate,
and local substantive and procedural re-
quirements referred to in subparagraph
(A) include, but are not limited to, all ad-
ministrative orders and all civil and ad-
ministrative penalties and fines, regard-
less of whether such penalties and fines
are punitive or coercive in nature or are
imposed for isolated, intermittent, or con-
tinuing violations. The United States
hereby expressly waives any immunity
576
otherwise applicable to the United States
with respect to any such substantive or
procedural requirement (including, but
not limited to, any injunctive relief, ad-
ministrative order or civil or administra-
tive penalty or fine referred to in the pre-
ceding sentence, or reasonable service
charge).
‘‘(C) The reasonable service charges
referred to in this paragraph include, but
are not limited to, fees or charges as-
sessed in connection with the processing
and issuance of permits, renewal of per-
mits, amendments to permits, review of
plans, studies, and other documents, and
inspection and monitoring of facilities, as
well as any other nondiscriminatory
charges that are assessed in connection
with a State, interstate, or local response
program.
‘‘(D) Neither the United States, nor
any agent, employee, or officer thereof,
shall be immune or exempt from any
process or sanction of any State or Fed-
577
eral court with respect to the enforce-
ment of any injunctive relief.
‘‘(E) No agent, employee, or officer of
the United States shall be personally lia-
ble for any civil penalty under any Fed-
eral or State response law with respect to
any act or omission within the scope of
their official duties. An agent, employee,
or officer of the United States shall be
subject to any criminal sanction (includ-
ing, but not limited to, any fine or impris-
onment) under any Federal or State re-
sponse law, but no department, agency,
or instrumentality of the executive, legis-
lative, or judicial branch of the United
States shall be subject to any such sanc-
tions.
‘‘(F) The waiver of sovereign immu-
nity provided in this paragraph shall not
apply to the extent a State law would
apply any standard or requirement to
such Federal department, agency, or in-
strumentality in a manner which is more
stringent than such standard or require-
578
ment would be applied to any other per-
son.
‘‘(G) Nothing in this section shall be
construed to affect the liability of any
person or entity other than a department,
agency, or instrumentality of the United
States under sections 9606 and 9607 of
this title.
‘‘(H)(i) The Administrator may issue
an order under section 106 of this Act to
any department, agency, or instrumental-
ity of the executive, legislative, or judi-
cial branch of the United States. The Ad-
ministrator shall initiate an administra-
tive enforcement action against such a
department, agency, or instrumentality
in the same manner and under the same
circumstances as action would be initi-
ated against any other person.
‘‘(ii) No administrative order issued
to such department, agency, or instru-
mentality shall become final until such
department, agency, or instrumentality
has had the opportunity to confer with
the Administrator.
579
‘‘(iii) Unless a State law in effect on
the effective date of the Superfund Re-
form Act of 1994, or a State Constitution,
requires the funds to be used in a dif-
ferent manner, all funds collected by a
State from the Federal Government from
penalties and fines imposed for violation
of any substantive or procedural require-
ment referred to in subsection (a) of this
section shall be used by the State only for
projects designed to improve or protect
the environment or to defray the costs of
environmental 
protection 
or 
enforce-
ment.
‘‘(I) Each such department, agency,
and instrumentality shall have the right
to contribution protection set forth in
section 113, when such department, agen-
cy, or instrumentality resolves its liabil-
ity under this Act.’’.
(3) By striking paragraph (4) of sub-
section (a).
(4) By inserting ‘‘(other than the in-
demnification requirements of section
580
119)’’ after ‘‘responsibility’’ in subsection
(a)(3).
SEC. 616. WORKER TRAINING AND EDUCATION GRANTS.
Section 111(c)(12) (42 U.S.C. 9611(c)(12)) is
amended—
(1) by striking ‘‘$10,000,000’’ and in-
serting ‘‘$20,000,000’’; and
(2) by inserting before the period at
the end ‘‘and $40,000,000 for each of fiscal
years 1995, 1996, 1997, 1998, and 1999’’.
SEC. 617. REPORT AND OVERSIGHT REQUIREMENTS.
(a) SUBMISSION TO STATE GOVERNORS.—Sec-
tion 301(h)(1) (42 U.S.C. 9651(h)(1)) is amend-
ed in the matter preceding subparagraph (A)
by striking ‘‘to Congress of such Agency’’ and
inserting ‘‘of such Agency to Congress and the
Governor of each State’’.
(b) SITE-SPECIFIC PROGRESS REPORT.—Sec-
tion 301(h)(1)(A) is amended to read as fol-
lows:
‘‘(A) A site-specific progress re-
port of accomplishments and expend-
itures on a State-by-State basis, in-
cluding—
581
‘‘(i) a statement of the number
of completed record of decisions,
removal actions, remedial actions,
and enforcement actions; and
‘‘(ii) a statement of—
‘‘(I) the aggregate amount
expended in each State;
‘‘(II) the amount expended
in each State for site inves-
tigation and cleanup activi-
ties;
‘‘(III) 
the 
amount 
ex-
pended in each State for non
site-specific costs; and
‘‘(IV) 
the 
amount 
ex-
pended for enforcement ac-
tions and cost recovery activi-
ties.’’.
(c) OTHER
REPORT
CONTENTS.—Section
301(h)(1) is amended—
(1) in subparagraph (B) by striking
the period at the end and inserting ‘‘and
removal or remedial action.’’; and
582
(2) in subparagraph (C) by inserting
‘‘, removal action, and remedial action’’
after ‘‘study’’.
(d) RESPONSE
TO
STATE
COMMENTS
BY
EPA.—Section 301(h) is amended by adding at
the end the following:
‘‘(4) RESPONSE TO STATE COMMENTS BY
EPA.—The Administrator of the Environ-
mental Protection Agency shall respond
in writing to any comments submitted to
the Administrator by a State regarding
reports 
developed 
under 
this 
sub-
section.’’.
SEC. 618. REMEDIAL TECHNOLOGIES.
Section 311 (42 U.S.C. 9660) is amended by
adding at the end the following:
‘‘(h) REMEDIAL TECHNOLOGIES.—
‘‘(1) REPORT.—Not later than 180 days
after the date of the enactment of this
subsection, the Administrator shall pub-
lish a report which—
‘‘(A) identifies and prioritizes ex-
isting 
remedial 
technology 
dem-
onstration 
and 
development 
pro-
grams conducted by the Adminis-
583
trator, the States, and Federal agen-
cies, including the Department of En-
ergy and the Department of Defense;
and
‘‘(B) identifies and prioritizes re-
medial technology needs at National
Priority List, non-National Priority
List, and Federal facility sites.
‘‘(2) STATE
INVOLVEMENT.—In prepar-
ing the report pursuant to paragraph (1),
the Administrator shall solicit State in-
volvement.’’.
SEC. 619. ADDITION OF STATES TO GOVERNMENTAL ENTI-
TIES ELIGIBLE FOR REIMBURSEMENT FOR
EMERGENCY REMOVAL ACTIONS; CLARIFICA-
TION OF AUTHORITY TO TAKE EMERGENCY
RESPONSE ACTION AT ILLICIT DRUG LAB-
ORATORIES.
(a) AMENDMENT OF SECTION 123.—Section
123 (42 U.S.C. 9623) is amended to read as fol-
lows:
‘‘SEC. 123. REIMBURSEMENT TO STATE AND LOCAL GOV-
ERNMENTS.
‘‘(a) APPLICATION.—Any State or general
purpose unit of local government for a politi-
584
cal subdivision of a State that is affected by
a release or threatened release at any facility
may apply to the President for reimburse-
ment under this section.
‘‘(b) REIMBURSEMENT.—
‘‘(1) EMERGENCY
RESPONSE
ACTIONS.—
The President is authorized to reimburse
States and local community authorities
for expenses incurred (before or after the
enactment of the Superfund Reform Act
of 1994) in carrying out emergency re-
sponse actions necessary to prevent or
mitigate injury to human health or the
environment associated with the release
or threatened release of any hazardous
substance or pollutant or contaminant.
Such actions may include, where appro-
priate, security fencing to limit access,
cleanup of illicit drug laboratories, re-
sponse to fires and explosions, and other
measures that require immediate re-
sponse at the State or local level.
‘‘(2) STATE OR LOCAL FUNDS NOT SUP-
PLANTED.—Reimbursement under this sec-
585
tion shall not supplant State or local
funds normally provided for response.
‘‘(c) AMOUNT.—(1) The amount of any reim-
bursement to a local authority under sub-
section (b)(1) may not exceed $25,000 for a sin-
gle response. The reimbursement under this
section with respect to a single facility shall
be limited to the units of local government
having jurisdiction over the political subdivi-
sion in which the facility is located.
‘‘(2) The amount of any reimbursement to
a State under subsection (b)(1) may not ex-
ceed $50,000 for a single response. The reim-
bursement under this section with respect to
a single facility shall be limited to the State
in which the facility is located.
‘‘(3) The amounts allowed for State and
local governments under subsection (b)(1)
may not be combined for any single response
action.
‘‘(d) 
PROCEDURE.—Reimbursements 
au-
thorized pursuant to this section shall be in
accordance with rules promulgated by the Ad-
ministrator.’’.
586
(b) AMENDMENT
OF
SECTION
111.—Para-
graph (11) of section 111(c) of such Act is
amended—
(1) by striking out ‘‘LOCAL
GOVERN-
MENT REIMBURSEMENT.—’’ and inserting in
lieu thereof ‘‘STATE
AND
LOCAL
GOVERN-
MENT REIMBURSEMENT.—(A)’’; and
(2) by adding at the end the following
new subparagraph:
‘‘(B) Reimbursements to States under
section 123, except that no State may re-
ceive more than $2,000,000 in any one fis-
cal year.’’.
(c) DEADLINE FOR REGULATIONS.—The Ad-
ministrator 
of 
Environmental 
Protection
Agency shall promulgate regulations to imple-
ment section 123 of the Comprehensive Envi-
ronmental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9623), as amend-
ed by subsection (a), not later than one year
after the date of the enactment of this Act.
SEC. 620. INCENTIVES TO MANAGING PARTIES.
The President shall encourage managing
parties conducting response actions under
the Comprehensive Environmental Response,
587
Compensation, and Liability Act of 1980 to
have their contractors train minorities and
other disadvantaged persons from the af-
fected community in remediation skills di-
rectly and in conjunction with historically
black colleges and universities and other edu-
cational institutions that primarily serve mi-
norities.
SEC. 621. STUDY OF SMALL DISADVANTAGED BUSINESS
GOALS.
The Administrator of the Environmental
Protection Agency shall study the advisability
and feasibility of instituting a small disadvan-
taged business goal program for all contracts
entered into by the Federal Government
under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of
1980 and shall report the Administrator’s rec-
ommendations to Congress within 1 year after
the date of the enactment of this Act. In carry-
ing out the study, the Administrator shall give
due consideration to the small disadvantaged
business goals established under section 2323
of title 10, United States Code, for the Depart-
ment of Defense and to the implementation of
588
such goals by a State in any case in which a
State is authorized to carry out such Act.
SEC. 622. INCINERATION OF DIOXIN AT TIMES BEACH, MIS-
SOURI.
The Administrator of the Environmental
Protection Agency may not incinerate dioxin
at the Times Beach site in the vicinity of St.
Louis, Missouri, until the General Accounting
Office and the Office of Technology Assess-
ment have completed a study on alternatives
to the incineration of dioxin at such site.
SEC. 623. CONFORMING AMENDMENT.
Section 104(g)(1) (42 U.S.C. 9604(g)(1)) is
amended by striking ‘‘section’’ and inserting
in lieu thereof ‘‘Act’’.
TITLE VII—FUNDING
SEC. 701. AUTHORIZATION OF APPROPRIATIONS.
Section 111(a) is amended by striking
‘‘$8,500,000,000 for the 5-year period begin-
ning on the date of enactment of the
Superfund Amendments and Reauthorization
Act of 1986, and not more than $5,100,000,000
for the period commencing October 1, 1991,
and ending September 30, 1994’’ and inserting
589
‘‘$9,600,000,000 for the period commencing Oc-
tober 1, 1994, and ending September 30, 1999’’.
SEC. 702. ORPHAN SHARE FUNDING.
Section 111(a) is amended by adding after
paragraph (7) (as added by this Act) the fol-
lowing new paragraph:
‘‘(8) ORPHAN
SHARE
FUNDING.—Pay-
ment of orphan shares pursuant to sec-
tion 130(e) of this Act.’’.
SEC. 703. AGENCY FOR TOXIC SUBSTANCES AND DISEASE
REGISTRY.
Section 111(m) (relating to ATSDR) is
amended to read as follows:
‘‘(m) AGENCY FOR TOXIC SUBSTANCES AND
DISEASE REGISTRY.—There shall be directly
available to the Agency for Toxic Substances
and Disease Registry to be used for the pur-
pose of carrying out activities described in
subsection (c)(4) of this section and section
104(i) of this Act not less than $100,000,000 per
fiscal year for each of fiscal years 1995, 1996,
1997, 1998, and 1999 of which $20,000,000 per
fiscal year shall be available for the purposes
of section 104(i)(15)(C). Any funds so made
available which are not obligated by the end
590
of the fiscal year in which made available
shall be turned to the Fund.’’.
SEC. 704. LIMITATIONS ON RESEARCH, DEVELOPMENT,
AND DEMONSTRATION PROGRAMS.
Section 111(n) is amended to read as fol-
lows:
‘‘(n) LIMITATIONS ON RESEARCH, DEVELOP-
MENT, AND DEMONSTRATION PROGRAM.—
‘‘(1) 
SECTION
311(a).—From 
the
amounts available in the Fund, not more
than the following amounts may be used
for the purposes of section 311(a) of this
title (relating to hazardous substance re-
search, demonstration, and training ac-
tivities):
‘‘(A) 
For 
fiscal 
year 
1995
$40,000,000.
‘‘(B) 
For 
fiscal 
year 
1996
$50,000,000.
‘‘(C) 
For 
fiscal 
year 
1997
$55,000,000.
‘‘(D) 
For 
fiscal 
year 
1998
$55,000,000.
‘‘(E) 
For 
fiscal 
year 
1999
$55,000,000.
591
No more than 10 percent of such amounts
shall be used for training under section
311(a) of this title for any fiscal year.
‘‘(2) SECTION 311(d).—For each of the
fiscal years 1995, 1996, 1997, 1998, and
1999, not more than $5,000,000 of the
amounts available in the Fund may be
used for the purposes of section 311(d) of
this title (relating to university hazard-
ous substance research centers).’’.
SEC. 705. AUTHORIZATION OF APPROPRIATIONS FROM
GENERAL REVENUES.
Section 111(p)(1) is amended to read as
follows:
‘‘(1) IN GENERAL.—The following sums
are authorized to be appropriated, out of
any money in the Treasury not otherwise
appropriated, to the Hazardous Sub-
stance Superfund:
‘‘(A) 
For 
fiscal 
year 
1995,
$250,000,000.
‘‘(B) 
For 
fiscal 
year 
1996,
$250,000,000.
‘‘(C) 
For 
fiscal 
year 
1997,
$250,000,000.
592
‘‘(D) 
For 
fiscal 
year 
1998,
$250,000,000.
‘‘(E) 
For 
fiscal 
year 
1999,
$250,000,000.
In addition there is authorized to be ap-
propriated to the Hazardous Substance
Superfund for each fiscal year an amount
equal to so much of the aggregate
amount authorized to be appropriated
under this subsection (and paragraph (2)
of section 131(b) of this title) as has not
been appropriated before the beginning
of the fiscal year involved.’’.
SEC. 706. ADDITIONAL LIMITATIONS.
Section 111 is amended by adding after
subsection (p) the following new subsections:
‘‘(q) CITIZEN INFORMATION AND ACCESS OF-
FICES.—For each of the fiscal years 1995, 1996,
1997, 
1998, 
and 
1999, 
not 
more 
than
$50,000,000 of the amounts available in the
Fund may be used for the purposes of section
117(h) of this Act (relating to citizen informa-
tion and access offices).
‘‘(r) VOLUNTARY RESPONSE PROGRAMS.—For
each of the fiscal years 1995 through 1999, not
593
more than $20,000,000 of the amounts avail-
able in the Fund may be used for the purposes
of section 128 of this Act (relating to State vol-
untary cleanup programs).’’.
SEC. 707. USES OF THE FUND.
Section 111(a) is amended by adding after
paragraph (8) the following new paragraph:
‘‘(9) REIMBURSEMENT
OF
POTENTIALLY
RESPONSIBLE
PARTY
COSTS.—If a poten-
tially responsible party and the Adminis-
trator enter into a settlement under this
Act in which the Administrator is reim-
bursed for its response costs, and if the
Administrator 
determines, 
through 
a
Federal audit of response the costs, that
costs for which the Administrator was re-
imbursed:
‘‘(A) are unallowable due to con-
tractor fraud, or
‘‘(B) are unallowable under the
Federal Acquisition Regulations, or
‘‘(C) should be adjusted due to
routine contract and Environmental
Protection 
Agency 
response 
cost
audit procedures,
594
then the Administrator is authorized to
use the fund to reimburse a potentially
responsible party for any costs identified
under subparagraph (A), (B), or (C) of
this paragraph.’’.
TITLE VIII—ENVIRONMENTAL
INSURANCE RESOLUTION FUND
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Environ-
mental Insurance Resolution and Equity Act
of 1994’’.
SEC. 802. DEFINITIONS.
For purposes of this title:
(1) APPLICABLE COSTS.—The term ‘‘ap-
plicable costs’’ means applicable National
Priorities List (NPL) facility costs or ap-
plicable non-NPL facility costs. Costs of
removal shall be treated as applicable
costs only if the removal is conducted in
accordance with section 104, 106 or 122 of
CERCLA or under the regulations of the
Administrator governing removal actions
(40 CFR 300.415 or any successor regula-
tions).
595
(2) APPLICABLE NPL FACILITY COSTS.—
The term ‘‘applicable NPL facility costs’’
means the costs for an eligible NPL facil-
ity—
(A) of response (as defined in sec-
tion 101(25) of CERCLA);
(B) for natural resources damages
under section 107 of CERCLA; or
(C) to defend potential liability
for the costs described in subpara-
graph (A) or (B) or both, including,
but not limited to, attorney’s fees,
costs of suit, consultant and expert
fees and costs, and expenses for test-
ing and monitoring.
(3) 
APPLICABLE
NON-NPL
FACILITY
COSTS.—The term ‘‘applicable non-NPL fa-
cility costs’’ means the costs for a non-
NPL facility—
(A) of removal (as defined in sec-
tion 101(23) of CERCLA); and
(B) to defend potential liability
for such costs of removal, including,
but not limited to, attorney’s fees,
costs of suit, consultant and expert
596
fees and costs, and expenses for test-
ing and monitoring.
(4) BOARD.—The term ‘‘Board’’ means
the Board of Trustees of the Fund.
(5) CERCLA.—The term ‘‘CERCLA’’
means the Comprehensive Environmental
Response, Compensation and Liability
Act of 1980 (42 U.S.C. 9601 et seq.).
(6) ELIGIBLE COSTS.—The term ‘‘eligi-
ble costs’’ means the applicable costs in-
curred with respect to a hazardous sub-
stance disposed of at an eligible facility
for which an eligible person either (A)
has not been reimbursed or (B) has been
reimbursed and that are the subject of a
dispute between the eligible person and
an insurer. The term eligible costs shall
not include any costs paid by the United
States.
(7) ELIGIBLE FACILITY.—The term ‘‘eli-
gible facility’’ means an eligible NPL fa-
cility or an eligible non-NPL facility.
(8) ELIGIBLE NPL FACILITY.—The term
‘‘eligible NPL facility’’ means any facility
placed on the National Priority List at
597
any time, at which a hazardous substance
was disposed of on or before December
31, 1985.
(9) ELIGIBLE
NON-NPL
FACILITY.—The
term ‘‘eligible non-NPL facility’’ means
any site or facility where a removal (as
defined in section 101(23) of CERCLA)
was conducted pursuant to governmental
direction or oversight under CERCLA
and the National Contingency Plan at
any time, at which a hazardous substance
was disposed of on or before December
31, 1985.
(10) ELIGIBLE PERSON.—The term ‘‘eli-
gible person’’ means any person that
demonstrates, to the satisfaction of the
Resolution Fund, that such person ei-
ther—
(A) has received a notice at any
time that it may be a potentially re-
sponsible party pursuant to CERCLA
with respect to an eligible NPL facil-
ity, which notice requests or demands
that such party perform response ac-
598
tions or pay response costs or natural
resource damages for such facility; or
(B) is or was liable, or alleged to
be liable, at any time for a removal
(as defined in section 101(23) of
CERCLA) at any eligible facility,
and had entered into a valid insurance
contract for qualified insurance.
(11) FACILITY.—The term ‘‘facility’’ has
the same meaning as provided in section
101(9) of CERCLA.
(12) FUND.—The term ‘‘Fund’’ means
the Environmental Insurance Resolution
Fund.
(13) NPL.—The term ‘‘NPL’’ means the
National Priorities List.
(14) PERSON.—The term person means
an individual, firm, corporation, associa-
tion, partnership, consortium, joint ven-
ture, commercial entity or governmental
unit (including any predecessor in inter-
est or any subsidiary thereof).
(15) QUALIFIED INSURANCE.—The term
‘‘qualified insurance’’ means insurance
for comprehensive general liability or
599
commercial multi-peril insurance cov-
erage for any period prior to January 1,
1986. For purposes of this paragraph,
comprehensive general liability insur-
ance includes broad form liability, gen-
eral liability, commercial general liabil-
ity, and excess or umbrella coverage; and
commercial 
multi-peril 
insurance 
in-
cludes broad form property, commercial
package, special multi-peril, and excess
or umbrella coverage. Such term shall
not include any other insurance, such as
environmental impairment liability in-
surance, whether found in primary, ex-
cess, or umbrella coverage.
(16) VALID INSURANCE CONTRACT.—The
term ‘‘valid insurance contract’’ means a
contract for qualified insurance other
than any of the following:
(A) An insurance contract with re-
spect to which a person has entered
into a settlement with an insurer pro-
viding, or where a final judgment has
provided, that the contract has been
satisfied and that such person has no
600
right to make any further claims
under such contract.
(B) An insurance contract which
covers only a time period prior to the
earliest date of the action or status of
the insured person which resulted in
liability or potential liability under
section 107 of CERCLA.
(C) An insurance contract with an
insurance company which is insol-
vent or in insolvency proceedings.
(D) An insurance contract which
is the subject of a settlement between
the insurance company and the in-
sured pursuant to which the policy
has been reformed to include an abso-
lute exclusion for pollution liability
(‘‘absolute pollution exclusion’’).
(17) STATE.—The term ‘‘State’’ has the
same meaning as provided in section
101(27) of CERCLA.
SEC. 
803. 
ENVIRONMENTAL 
INSURANCE 
RESOLUTION
FUND.
(a) ENVIRONMENTAL INSURANCE RESOLUTION
FUND ESTABLISHED.—There is hereby estab-
601
lished the Environmental Insurance Resolu-
tion Fund.
(b) OFFICES.—The principal office of the
Fund shall be in the District of Columbia or
at such other place as the Fund may from
time to time prescribe.
(c) STATUS OF RESOLUTION FUND.—Except
as expressly provided in this title, the Fund
shall not be considered an agency or estab-
lishment of the United States. The members of
the Board of Trustees shall not, by reason of
such membership, be deemed to be officers or
employees of the United States.
(d) BOARD OF TRUSTEES.—
(1) IN
GENERAL.—The Fund shall be
administered by a Board of Trustees.
(2) MEMBERSHIP.—The 
Board 
shall
consist of the following:
(A) GOVERNMENTAL MEMBERS.—
(i) The Administrator of the
Environmental Protection Agency
or the Administrator’s designee.
(ii) The Attorney General of
the United States or the Attorney
General’s designee.
602
(B) PUBLIC MEMBERS.—Five public
members appointed by the President
not later than 60 days after the date
of enactment of this title, not less
than two of whom shall represent in-
surers subject to section ll of the
Internal Revenue Code of 1986, and
not less than two of whom shall rep-
resent eligible persons as defined in
section 802(10). The public members
shall be citizens of the United States.
(C) EX-OFFICIO MEMBER.—The Sec-
retary of the Treasury shall serve as
an ex officio member of the Board.
(3) CHAIR.—The Chair of the Board
shall be designated by the President from
time to time from among the members de-
scribed in paragraph (2)(A). No expendi-
ture may be made, or other action taken,
by the Fund without the concurrence of
the Chair of the Board.
(4) 
COMPENSATION.—Governmental
members of the Board shall serve without
additional compensation. Public mem-
bers of the Board shall, while attending
603
meetings of the Board or while engaged
in duties related to such meetings or
other activities of the Board pursuant to
this title, be entitled to receive compensa-
tion at the rate of $200 per day, including
travel time. While away from their homes
or regular places of business, members of
the Board shall be allowed travel and ac-
tual, reasonable and necessary expenses
to the same extent as officers of the Unit-
ed States.
(5) TERM OF PUBLIC MEMBERS.—Public
members of the Board shall serve for a
term of 5 years, except that such mem-
bers may be removed by the President
for any reason at any time. A public mem-
ber whose term has expired may con-
tinue to serve on the Board until such
time as the President appoints a succes-
sor. The President may reappoint a pub-
lic member of the Board, but no such
member may consecutively serve more
than two terms.
(6) VACANCIES.—A vacancy on the
Board shall be filled in the same manner
604
as the original appointment, except that
such appointment shall be for the bal-
ance of the unexpired term of the vacant
position.
(7) QUORUM.—Four members of the
Board shall constitute a quorum for the
conduct of business.
(8) MEETINGS.—The Board shall meet
not less than quarterly at the call of the
Chair. Meetings of the Board shall be
open to the public unless the Board, by a
majority vote of members present in open
session, determines that it is necessary or
appropriate to close a meeting. The Chair
shall provide at least 10 days notice of a
meeting by publishing a notice in the
Federal Register and such notice shall in-
dicate whether it is expected that the
Board will consider closing all or a por-
tion of the meeting. Nothing in this para-
graph shall be construed to apply to in-
formal discussions or meetings among
Board members.
(e) OFFICERS AND EMPLOYEES.—
605
(1) CHIEF EXECUTIVE OFFICER; CHIEF FI-
NANCIAL
OFFICER.—(A) The Fund shall
have a Chief Executive Officer appointed
by the Board who shall exercise any au-
thority of the Fund under such terms and
conditions as the Board may prescribe.
(B) The Fund shall have a Chief Fi-
nancial Officer appointed by the Board.
(2) COMPENSATION.—No officer or em-
ployee of the Fund may be compensated
by the Fund at an annual rate of pay
which exceeds the rate of basic pay in ef-
fect from time to time for level I of the
Executive Schedule under section 5312 of
title 5, United States Code. No officer or
employee of the Fund, other than a mem-
ber of the Board, may receive any salary
or other compensation from any source
other than the Fund for services ren-
dered during the period of employment
by the Fund.
(3) POLITICAL TEST OR QUALIFICATION.—
No political test or qualification shall be
used in selecting, appointing, promoting,
or taking other personnel actions with
606
respect to officers, agents, and employees
of the Fund.
(4) ASSISTANCE BY FEDERAL AGENCIES.—
The Attorney General, the Secretary of
the Treasury, and the Administrator of
the Environmental Protection Agency,
may to the extent practicable and fea-
sible, and in their sole discretion, make
personnel and other resources available
to the Fund. Such personnel and re-
sources may be provided on a reimburs-
able basis, and any personnel so provided
shall not be considered employees of the
Fund for purposes of paragraph (2).
(f) POWERS
OF
RESOLUTION
FUND.—Not-
withstanding any other provision of law, ex-
cept as provided in this title or as may be
hereafter enacted by the Congress expressly
in limitation of the provisions of this sub-
section, the Fund shall have the power—
(1) to have succession until dissolved
by Act of Congress;
(2) to make and enforce such bylaws,
rules and regulations as may be nec-
607
essary or appropriate to carry out the
purposes of this title;
(3) to make and perform contracts,
agreements, and commitments;
(4) to settle, adjust, and compromise,
and with or without consideration or
benefit to the Fund release or waive in
whole or in part, in advance or other-
wise, any claim, demand, or right of, by,
or against the Fund;
(5) to sue and be sued, complain and
defend, in any State, Federal or other
court;
(6) to determine its necessary expend-
itures and appoint, employ, and fix and
provide for the duties, compensation and
benefits of officers, employees, attorneys,
and agents, all of whom shall serve at the
pleasure of the Board; except that all
amounts withdrawn from the Treasury of
the United States by or on behalf of the
Resolution Fund shall be certified by a
federally authorized certifying officer
who is an employee of the Federal agency
608
represented by the chair of the Resolu-
tion Fund;
(7) to hire or accept the voluntary
services of consultants, experts, advisory
boards, and panels to aid the Fund in
carrying out the purposes of this title;
and
(8) to take such other actions as may
be necessary to carry out the responsibil-
ities of the Fund under this title.
(g) BORROWING
AUTHORITY.—Nothing in
this title shall be construed to permit the
Fund to issue any evidence of indebtedness or
otherwise borrow money.
SEC. 804. RESOLUTION OFFERS.
(a) IN GENERAL.—The Fund shall offer one
comprehensive resolution to each eligible per-
son. The offer shall be for a percentage of all
the eligible costs of such eligible person in-
curred in connection with all eligible facili-
ties. The amount of the offer shall be deter-
mined pursuant to section 806.
(b) REQUESTS FOR RESOLUTION OFFERS.—
(1) IN
GENERAL.—An eligible person
may, at any time after the promulgation
609
of the interim final regulations under
section 812(a), file a request for a resolu-
tion offer from the Fund.
(2) RESPONSE TO REQUEST.—Not later
than 180 days after the receipt of a com-
plete request as determined by the Fund,
the Fund shall in writing—
(A) make a resolution offer to
each eligible person that has filed a
request for a resolution offer; or
(B) notify a person filing such a
request that such person is not an eli-
gible person.
(c) JOINT VENTURES AND SUBSIDIARIES.—A
joint venture shall not be aggregated with any
individual joint venturer for purposes of this
section but shall be treated as a distinct en-
tity for such purposes. All claims by subsidi-
aries shall be included in a single claim by the
corporate parent for purposes of this Act.
SEC. 805. DOCUMENTATION OF CLAIMS AND INSURANCE
COVERAGE.
(a) SCREENING OF CLAIMS.—
(1) DENIAL BY REASON OF FELONY.—The
Fund may deny a resolution offer to an
610
otherwise eligible person for a specific fa-
cility if the eligible person has been con-
victed of a felony under any Federal or
State statute which has a material effect
on the response costs or natural resource
damage incurred at the facility.
(2) FILING
AND
ACTIVE
PURSUIT
OF
CLAIMS.—The Fund may decide not to
make an offer to an eligible person unless
the eligible person has filed a claim and
is actively pursuing the claim. The Fund
may also decide that an offer should be
made to any such person.
(b) FILING OF CLAIMS.—For the purposes of
subsection (a), an eligible person shall be
deemed to have filed a claim if the eligible
person has notified one or more of its insurers
of the existence of a claim, or has engaged in
active investigation and preparation of a
claim, or has filed a lawsuit seeking coverage
for eligible costs. Failure to have filed a claim
or to have engaged in settlement discussions
before January 1, 1994, shall not be deemed
to preclude an eligible person from receiving
an offer from the Fund if the eligible person
611
had not received any notice letter from a gov-
ernmental authority or one or more poten-
tially responsible parties asserting its poten-
tial liability under CERCLA at any eligible fa-
cility until after January 1, 1993.
(c) ACTIVE PURSUIT OF CLAIMS.—For pur-
poses of this section, an eligible person shall
be considered to be actively pursuing a claim
if—
(1) the person has filed a lawsuit
against an insurer, or has filed a motion
or another pleading in a lawsuit against
an insurer, or has engaged in any discov-
ery in a lawsuit against an insurer be-
tween January 1, 1993, and December 31,
1993 regarding eligible costs at an eligi-
ble facility;
(2) the person has engaged in settle-
ment discussions with an insurer be-
tween January 1, 1993, and December 31,
1993 regarding eligible costs at an eligi-
ble facility;
(3) the person has engaged in active
investigation and preparation of a claim
before January 1, 1994;
612
(4) if the person has received a letter
from an insurer rejecting coverage or re-
serving its rights to reject coverage re-
garding eligible costs at an eligible facil-
ity, the person has sent within 1 year
thereafter an additional status report or
letter apprising an insurer of activities
regarding an eligible facility; or
(5) the eligible person has sent a let-
ter to an insurer notifying an insurer of
the potential existence of a claim regard-
ing eligible costs at an eligible facility
and has received no response from the in-
surer.
(d) DOCUMENTATION OF COVERAGE.—
(1) EFFECT
OF
DOCUMENTATION.—Cov-
erage of an eligible person for policy
years prior to 1986 and the applicable
deductibles and limits on coverage shall
be confirmed to the satisfaction of the
Fund by the terms of the policies or other
documentary proof of insurance provided
by, or for, the eligible person in accord-
ance with this subsection.
613
(2) SUBMISSION
OF
DOCUMENTARY
EVI-
DENCE.—After promulgation of regula-
tions governing documentation require-
ments, an eligible person requesting an
offer shall submit: copies of its insurance
policies, or other documentary evidence
sufficient to establish the following six
terms of coverage: insurance company,
policy number, type of policy, duration of
policy, deductible or self-insured reten-
tion, and limit of coverage. Documentary
evidence may consist of any documents
from an insurance company or broker or
documents of the eligible person or other
party which are generally contempora-
neous with the term of the policy or with
subsequent retrospective rating under
the policy. Where documentary evidence
(other than a policy) is relied upon as the
proof of coverage, an eligible person must
certify that it has undertaken a good
faith investigation of its records, that its
submission is complete and accurate to
the best of its information and belief, and
that it does not have a copy of the insur-
614
ance policy. If an eligible person submits
documentary evidence which does not es-
tablish all six terms of coverage but
which does establish the name of the in-
surance company and one or more other
terms evidencing coverage, the named in-
surance company shall undertake an in-
vestigation for any policy or other rel-
evant documents evidencing the eligible
person’s coverage. At the conclusion of
the investigation, the named insurance
company shall—
(A) produce to the Fund any poli-
cies or other documents relevant to
the eligible person’s claim of cov-
erage; or
(B) certify that it has undertaken
a good faith investigation of its
records and that it has produced any
and all policies or documents avail-
able to the insurer and relevant to
the eligible person’s claim of cov-
erage.
Subsequent to the named insurance com-
pany’s production or certification, the
615
Fund shall decide whether a person has
provided adequate proof of insurance
based on the evidence presented. Submis-
sion of the six terms of coverage referred
to in this paragraph shall be treated as
adequate proof of insurance.
(e) PRIOR SETTLEMENTS.—
(1) DISCLOSURE.—Each eligible person
shall be required to disclose and certify
the amounts and terms of any settlement
reached with an insurer for eligible costs
at eligible facilities. In the event that the
terms of such a settlement are subject to
a protective order or are otherwise con-
fidential, the eligible person may provide
evidence of the confidential nature of the
settlement information to the Fund. Upon
receipt of such evidence, the Fund shall
be obligated to preserve the confidential-
ity of all such settlement information.
(2) EFFECT OF TITLE ON PRIOR SETTLE-
MENTS.—This title shall have no effect on
prior settlements between eligible per-
sons and an insurer.
616
SEC. 806. AMOUNT OF RESOLUTION OFFERS.
(a) RESOLUTION OFFERS.—The Fund shall
make resolution offers to each eligible person
equal to the applicable percentage (deter-
mined under this section) of the lesser of the
following:
(1) The eligible costs actually in-
curred by an eligible person.
(2) The available coverage, as deter-
mined under this section.
(b) APPLICABLE PERCENTAGE.—
(1) IN GENERAL.—For each eligible per-
son that has not established a litigation
venue pursuant to subsection (d), the ap-
plicable percentage shall be equal to the
facility location percentage for that per-
son. For each eligible person that has es-
tablished one or more litigation venues
pursuant to subsection (d), the applicable
percentage shall be comprised of one-half
of the facility location percentage for
that person plus one-half of the venue
percentage for that person.
(2) FACILITY LOCATION PERCENTAGE.—
(A) ONE OR MORE ELIGIBLE NPL FA-
CILITIES.—For each eligible person,
617
the Fund shall establish a facility lo-
cation percentage. The percentage
shall be equal to the weighted aver-
age of the State percentages for each
eligible NPL facility for which such
person has been identified as a poten-
tially responsible party. In determin-
ing such weighted average, each such
eligible facility shall be accorded
equal value, except as provided in
paragraph (4).
(B) NO ELIGIBLE NPL FACILITIES.—
For each person not identified as a
potentially responsible party at one
or more eligible NPL facilities but
who is, or is alleged to be, liable at
any time for removal (as defined in
section 101(23) of CERCLA) at one or
more eligible non-NPL facilities, the
Fund shall establish a facility loca-
tion percentage equal to the weighted
average of the State percentages for
each such eligible non-NPL facility.
In determining such weighted aver-
618
age, each such facility shall be ac-
corded equal value.
(3) LITIGATION VENUE PERCENTAGE.—
(A) ONE OR MORE ELIGIBLE NPL FA-
CILITIES.—For each eligible person
that has established one or more liti-
gation venues pursuant to subsection
(d) with respect to one or more eligi-
ble NPL facilities, the Fund shall es-
tablish a litigation venue percentage.
The percentage shall be equal to the
weighted average of the State per-
centages for each eligible NPL facility
in each State in which such eligible
person has established a litigation
venue. In determining such weighted
average, each eligible NPL facility
with respect to which such person
has established a litigation venue
shall be accorded equal value.
(B) NO ELIGIBLE NPL FACILITIES.—
For each eligible person that does not
have one or more eligible NPL facili-
ties and has established litigation
venue with respect to one or more eli-
619
gible non-NPL facilities pursuant to
subsection (d), the Fund shall estab-
lish a litigation venue percentage
equal to the weighted average of the
State percentages for each eligible
non-NPL facility in each State in
which such eligible person has estab-
lished a litigation venue. In determin-
ing such weighted average, each eligi-
ble non-NPL facility with respect to
which litigation venue has been es-
tablished shall be accorded equal
value.
(4) EXTRA WEIGHTING OF LARGE SITES.—
In determining the facility location per-
centage under paragraph (2)(A), the Fund
shall count a facility twice for weighting
purposes if—
(A) the facility is located in the
same State as the State in which liti-
gation venue has been established;
(B) the facility is included in the
eligible person’s coverage litigation
in that venue; and
620
(C) total response costs incurred
plus estimated response costs exceed
$50,000,0000, as established by gov-
ernmental cost summaries or de-
mands, records or decision, or evi-
dence satisfactory to the Fund of
costs actually incurred.
(c) STATE PERCENTAGE.—
(1) 
CONGRESSIONAL
FINDINGS.—The
Congress finds that as of January 1, 1994,
State law generally is more favorable to
eligible persons that pursue claims con-
cerning eligible costs against insurers in
some States, that State law generally is
more favorable to insurers with respect
to such claims in some States, and that in
some States the law generally favors nei-
ther insurers nor eligible persons with
respect to such claims or that there is in-
sufficient 
information 
to 
determine
whether such law generally favors insur-
ers or eligible persons with respect to
such claims. The Congress further finds
that considerations of equity and fairness
require that resolution offers made by
621
the Fund must vary to reflect the relative
state of the law among the several States.
(2) STATE
PERCENTAGE
CATEGORIES.—
The States are hereby classified into the
following percentage categories:
(A) 20 PERCENT.—The State per-
centage shall be 20 percent for: Flor-
ida, Maine, Maryland, Massachusetts,
Michigan, New York, North Carolina,
and Ohio.
(B) 60 PERCENT.—The State per-
centage shall be 60 percent for: Cali-
fornia, Colorado, Georgia, Illinois,
New Jersey, Washington, West Vir-
ginia, and Wisconsin.
(C) 40 
PERCENT.—For all other
States the State percentage shall be
40 percent.
(d) LITIGATION VENUE.—For purposes of
this section, litigation venue is considered es-
tablished with respect to an eligible person
if—
(1) on or before December 31, 1993,
the eligible person had pending in a
court of competent jurisdiction a com-
622
plaint against an insurer with respect to
eligible costs at an eligible facility; and
(2) no motion to change venue with
respect to such complaint was pending
on or before January 31, 1994.
(e) AVAILABLE COVERAGE.—
(1) IN GENERAL.—The Fund shall de-
termine the available coverage for each
eligible person by adding the limits of li-
ability contained in all valid insurance
contracts of insurance (including per oc-
currence, aggregate, primary, excess or
other limits) and then by subtracting the
total of all deductibles and self-insured
retentions applicable to those policies. In
calculating the available coverage and
the average deductible pursuant to sec-
tion 808(c), the Fund shall exclude any
deductible or self-insured retention con-
tained in a policy which has already been
paid by the eligible person.
(2) PER OCCURRENCE BASIS POLICIES.—
For insurance policies with limits or
deductibles expressed on a per occur-
rence basis without an aggregate limit,
623
the limit or deductible shall be an
amount equal to the limit or deductible
in the policy multiplied by the number of
eligible facilities of the eligible person
and by the number of years the policy
was in effect. Per occurrence limits or
deductibles may be adjusted by the Fund
whenever there is an increase in the eli-
gible facilities attributable to an eligible
party.
(f) ADJUSTMENT
FOR
OWNED
PROPERTY
SITES.—
(1) ADJUSTMENT.—If an eligible person
seeks payment of eligible costs for an
owned property site, only 70 percent of
such eligible costs (including eligible
costs for off site contamination attrib-
utable to the owned property) shall be
taken into account in making payments
under this section.
(2) DEFINITIONS.—For purposes of this
subsection:
(A) OWNED
PROPERTY
SITE.—A fa-
cility shall be considered an owned
property site if—
624
(i) an eligible person owned
or leased the facility at the time
of initial disposal or a prede-
cessor company owned or leased
the facility at the time of initial
disposal and the predecessor com-
pany merged into an eligible per-
son or became the wholly owned
subsidiary of an eligible person;
(ii) the property owned or
leased by the eligible person or
predecessor company represents
all or a portion of the facility as
specifically 
designated 
on 
the
NPL or as subject to a removal
covered by this title;
(iii)(I) an eligible person or
predecessor company generated
all of the hazardous substances
which were disposed of during
the period such person or prede-
cessor owned or leased the facil-
ity, or (II) an eligible person or
predecessor company owned a
landfill which is part of the prop-
625
erty on which a manufacturing or
industrial facility is situated, the
landfill was used for the treat-
ment, 
storage, 
or 
disposal 
of
waste generated from the manu-
facturing or industrial facility
and from third parties, and the
landfill contains waste that is not
primarily municipal solid waste
or sewage sludge as defined in
title VI of this Act; and
(iv) the hazardous substances
associated with the owned prop-
erty constitute the basis for liabil-
ity at the facility.
(B) 
PROPERTY
NOT
CONSIDERED
OWNED PROPERTY.—A facility shall not
be considered owned property of an
eligible person for purposes of this
section when the eligible person ac-
quired the facility from, or acquired
the assets of, a company which en-
gaged in initial disposal of hazardous
substances at the facility and the eli-
gible person did not engage in initial
627
(ii) any activities undertaken
by an owner related to response
at the facility.
SEC. 807. ACCEPTANCE OF RESOLUTION OFFER.
(a) ACCEPTANCE.—
(1) ELECTION TO ACCEPT.—An eligible
person may, when submitting a request
for a resolution to the Fund, make a writ-
ten irrevocable election to accept any
resolution to be made by the Fund.
(2) NOTIFICATION.—An eligible person
that does not make an election pursuant
to paragraph (1) shall, within 60 days of
the receipt of a resolution offer from the
Fund, notify the Fund in writing of its ir-
revocable acceptance or rejection of such
offer. An eligible person who does not so
accept or reject a resolution offer within
60 days shall be deemed to have made an
irrevocable election to reject the offer.
(b) ACCEPTANCE
OR REJECTION PRIOR
TO
OFFER.—Upon expiration of the 60-day period
immediately following the enactment of this
Act, any eligible person may notify the Fund
that such eligible person accepts or rejects
628
any offer to be issued by the Fund under this
title. Any such notice shall be signed by a duly
authorized officer of the eligible person, as
certified by the secretary of the eligible per-
son or by a person with equivalent authority.
(c) WAIVER OF INSURANCE CLAIMS.—Any eli-
gible person accepting a resolution offer from
the Fund shall agree in writing, subject to re-
instatement described in subsection (d) to
waive, stay, or dismiss any of its existing and
future claims against any insurer for eligible
costs, including bad faith claims pertaining to
actions to recover eligible costs.
(d) 
REINSTATEMENT
OF
INSURANCE
CLAIMS.—If the Fund fails to timely fulfill its
obligations to an eligible person under the
terms of an accepted resolution offer, such eli-
gible person shall be entitled to reinstate any
of its existing and future claims under a con-
tract for insurance with respect to eligible
costs. A shortfall provided for in section 808(f)
shall not be considered a failure of the Fund
to timely fulfill its obligations.
629
SEC. 808. RESOLUTION PAYMENTS.
(a) TIME
OF
PAYMENT; PRE-RESOLUTION
COSTS.—The Fund shall make equal annual
payments over a period of 10 years for the ap-
plicable percentage of eligible costs incurred
by an eligible person on or before the date
such person accepts a resolution offer. The
Fund may, in its sole discretion, make such
payments over a shorter period if the aggre-
gate eligible costs do not exceed $50,000. An
eligible person shall submit to the Fund docu-
mentation of such costs as the Fund may re-
quire. The initial payment to an eligible per-
son under this paragraph shall be made not
later than 60 days after the receipt of docu-
mentation satisfactory to the Fund. Interest
shall not accrue on amounts payable pursuant
to a resolution offer during the 5-year period
beginning on the date of the enactment of this
Act. In each year thereafter, interest shall ac-
crue on the unpaid balance of the pre-resolu-
tion costs in an amount equal to the rate of
interest on one year Treasury bills issued on
the anniversary of such date of enactment, or
if no bills were issued on such date, on the
630
last date such bills were issued prior to such
anniversary.
(b) TIME
OF PAYMENT; POST-RESOLUTION
COSTS.—The Fund shall make payments for el-
igible costs incurred by an eligible person
after the date such person accepts a resolu-
tion offer to the eligible person, or to a con-
tractor or other person designated by the eli-
gible person, subject to such documentation
as the Fund may require. Payments under
this title shall be made not later than 60 days
after the receipt of documentation (satisfac-
tory to the Fund) with respect to such costs.
(c) ADJUSTMENT FOR DEDUCTIBLE OR SELF
INSURANCE.—In the case of an eligible person
that has submitted to the Fund, as proof of
status as an eligible person, a valid insurance
contract subject to a self-insured retention or
a deductible, payment to such eligible person
pursuant to a resolution shall be reduced
once by an amount equal to the average of the
amounts 
of 
self-insured 
retentions 
and
deductibles in all valid insurance contracts of
insurance of the eligible person. For purposes
of determining such average in the case of a
631
per occurrence deductible or self-insured re-
tention, the Fund shall only count such de-
ductible or self-insured retention once for
each policy year.
(d) ADJUSTMENT FOR CERTAIN DUTY-TO-DE-
FEND COSTS.—If an insurer has incurred and
paid costs pursuant to a duty-to-defend clause
contained in a contract for insurance, and
such costs are the subject of a dispute be-
tween the eligible person and an insurer, the
Fund shall reduce payment of a resolution to
an eligible person by such amount and pay
such amount to the insurer. If such costs were
paid by the insurer on or before the date the
eligible person accepted a resolution offer
made by the Fund, payment to an insurer
under this section shall be made in equal an-
nual installments over a period of 10 years,
and interest shall not accrue with respect to
such costs. The Fund may, in its sole discre-
tion, make such payments over a shorter pe-
riod if the aggregate costs do not exceed
$50,000.
(e) EFFECT
OF PAYMENTS.—(1) Payments
made to an eligible person by the Fund pursu-
632
ant to a resolution offer shall be treated as
payments made by an insurer in satisfaction
of the terms and conditions of a contract of
insurance. Such payments shall be allocated
pro rata to each year in which proof of insur-
ance has been established. The amount allo-
cated to each coverage year shall be allocated
100 percent to the primary coverage until it
is exhausted and then 100 percent to each suc-
cessively higher layer of coverage until each
such layer is exhausted.
(2) No insurer shall be allowed to collect
recovery pursuant to a reinsurance contract
on the basis of a payment by the Fund unless
such reinsurer is not subject to the fees under
section lll of the Internal Revenue Code or
has not satisfied its obligations pursuant to
such fees.
(f) SHORTFALL.—If, in any year during the
first 10 years after enactment, the Fund does
not have sufficient funds available to pay all
eligible costs of resolution offers accepted by
eligible persons, the Fund shall determine the
amount of the costs which cannot be paid in
that year (the ‘‘shortfall’’). The Fund shall al-
633
locate the shortfall to the eligible persons in
proportion to the size of their pending claims
for reimbursement from the Fund. This short-
fall shall be paid to the eligible person and
shall be amortized over the next 5 years, and
the amortized amount shall be paid with in-
terest at the rate specified for the amortiza-
tion of past costs. A shortfall which is being
amortized hereunder shall not be considered
a default by the Fund, triggering the rein-
statement of claims.
(g) INTERIM ALLOCATIONS.—An eligible per-
son accepting an offer of resolution shall be
entitled to receive payment of all eligible
costs which have been incurred. If an eligible
person obtains reimbursement of such eligi-
ble costs as a result of a final allocation, con-
tribution action, or otherwise, the eligible
person must notify the Fund of the amount of
the reimbursement and must either (1) reduce
its next claim to the Fund for payment of eli-
gible costs by the amount of the reimburse-
ment, or (2) refund the amount of the reim-
bursement.
634
SEC. 809. REJECTION OF RESOLUTION OFFER AND REIM-
BURSEMENT TO INSURER.
If an eligible person rejects a resolution
offer (including a rejection pursuant to sec-
tion 807(b)), litigates a claim with respect to
eligible costs against 1 or more insurers, and
obtains a final judgment against, or enters
into a settlement with, any such insurer, the
Fund—
(1) shall reimburse to such insurer or
insurers the lesser of the amount of the
resolution offer made to the eligible per-
son (or, in the case of a rejection pursu-
ant to section 807(b), the amount which
the Fund would have offered) or the final
judgment or settlement; and
(2) may, if the resolution offer ex-
ceeded the final judgment or settlement,
reimburse the insurer or insurers for un-
recovered reasonable costs and legal fees,
except that the total reimbursement
under this subsection may not exceed the
amount of the resolution offer to the eli-
gible person (or, in the case of a rejection
pursuant to section 807(b), the amount
which the Fund would have offered).
635
Reimbursements pursuant to this subsection
shall be subject to such documentation as the
Fund may require and shall be made by the
Fund not later than 60 days after receipt by
the Fund of a complete request for reimburse-
ment satisfactory to the Fund.
SEC. 810. FINANCIAL STATEMENTS, AUDITS, INVESTIGA-
TIONS, AND INSPECTIONS.
(a) IN GENERAL.—The financial statements
of the Fund shall be prepared in accordance
with generally accepted accounting prin-
ciples and shall be audited annually by an
independent certified public accountant in
accordance with the auditing standards is-
sued by the Comptroller General. Such audit-
ing standards shall be consistent with the pri-
vate sector’s generally accepted auditing
standards.
(b) INVESTIGATIONS
AND OTHER AUDITS.—
The Inspector General of the Environmental
Protection Agency is authorized to conduct
audits and investigations as the Inspector
General deems necessary or appropriate.
636
SEC. 811. STAY OF PENDING LITIGATION.
(a) ENACTMENT OPERATES AS STAY.—Except
as provided in this section, enactment of this
title shall operate as a stay, applicable to all
persons other than the United States, of the
commencement or continuation, including
the issuance or employment of process or
service of any pleading, motion, or notice, of
any judicial, administrative, or other action
with respect to claims for indemnity or other
claims arising from a valid insurance contract
of qualified insurance concerning insurance
coverage for eligible costs.
(b) ACTIONS NOT AFFECTED.—Nothing in
this title shall be construed to authorize a
stay of any action involving claims that do not
concern eligible costs or a valid insurance
contract of qualified insurance. Any such
claim shall be severed by operation of law
from claims involving eligible costs or valid
contracts of insurance of qualified insurance,
and the insured party may proceed with the
prosecution of the severed claims not involv-
ing eligible costs or not involving qualified in-
surance.
637
(c) TERMINATION OF STAY.—(1) The stay es-
tablished by subsection (a) shall terminate
with respect to an eligible person upon the
earlier of the following:—
(A) The rejection of a resolution offer
(including an early rejection) by such eli-
gible person pursuant to section 807.
(B) A determination by the Fund that
an offer will not be made to such eligible
person or that such person is not an eligi-
ble person.
(C) A determination by the Fund pur-
suant to section 816(b) that the minimum
participation level has not been achieved.
(D) A failure by the Fund at any time
after the date 10 years after the enact-
ment of this Act to timely pay to such eli-
gible person a resolution payment equal
to the total amount of eligible costs (in-
cluding shortfalls from prior years) re-
quired to be paid to such person under a
resolution offer in any year after such
date.
(2) The stay established by subsection (a)
shall terminate on the date that is 10 years
638
after the enactment of this Act with respect
to:
(A) A person that becomes an eligible
person on or after such date.
(B) An eligible person that has not
filed a request for a resolution offer and
has not rejected a resolution offer pursu-
ant to section 807(b) before such date.
(d) AUTHORITY
OF UNITED STATES UNAF-
FECTED.—Nothing in this section shall be con-
strued to limit or affect in any way the discre-
tion or authority of the United States or any
party to commerce or continue any allocation
process, cost recovery, or other action pursu-
ant to the authority of sections 101 through
122a of CERCLA.
(e) STATUTE OF LIMITATION TOLLED.—Not-
withstanding any other provision of Federal
or State law, any Federal or State statute of
limitation concerning the filing or prosecu-
tion of an action by an eligible person against
an insurer, or by an insurer against an eligi-
ble person, with respect to eligible costs shall
be tolled during the pendency of the stay of
pending litigation established by this title.
639
SEC. 812. REGULATIONS.
(a) PROCEDURES
AND
DOCUMENTATION.—
Not later than 120 days after the date of en-
actment of this title, the Fund shall publish in
the Federal Register for public comment of
not more than 60 days interim final regula-
tions concerning procedures and documenta-
tion for the submission of requests for resolu-
tion offers and the payment of accepted reso-
lution offers. Not later than 60 days after the
close of the public comment period, the Fund
shall publish in the Federal Register final reg-
ulations concerning such procedures and doc-
umentation, which may be amended by the
Fund from time to time. The Fund in its dis-
cretion may require that requests for resolu-
tion offers made before the issuance of final
regulations pursuant to this subsection be re-
vised to conform to the requirements of such
final regulations.
(b) OTHER REGULATIONS.—The Fund may
prescribe such other regulations, rules and
procedures as the Fund deems appropriate
from time to time.
(c) JUDICIAL REVIEW.—No regulation, rule
or procedure prescribed by the Fund shall be
640
subject to review by any court except to the
extent such regulation, rule or procedure is
not consistent with a provision of this title.
No resolution offer made by the Fund shall be
subject to review by any court.
SEC. 813. COURT JURISDICTION AND PENALTIES.
(a) JURISDICTION
OF FEDERAL COURTS.—
Notwithstanding section 1349 of title 28,
United States Code:
(1) The Fund shall be deemed to be
an agency of the United States for pur-
poses of sections 1345 and 1442 of title 28,
United States Code.
(2) All civil actions to which the Fund
is a party shall be deemed to arise under
the laws of the United States, and the dis-
trict courts of the United States shall
have original jurisdiction of all such ac-
tions, without regard to amount or value.
(3) Any civil or other action, case or
controversy in a court of a State, or in
any court other than a district court of
the United States, to which the Fund is a
party may at any time before the trial
thereof be removed by the Fund, without
641
the giving of any bond or security, to the
district court of the United States for the
district and division embracing the place
where the same is pending, or, if there is
no such district court, to the district
court of the United States for the district
in which the principal office of the Fund
is located, by following any procedure for
removal of causes in effect at the time of
such removal.
(4) No attachment or execution shall
be issued against the Fund or any of its
property before final judgment in any
State, Federal, or other court.
(b) FALSE OR FRAUDULENT STATEMENTS OR
CLAIMS.—
(1) CRIMINAL PENALTIES.—(A) For pur-
poses of section 287 of title 18, United
States Code (relating to false claims), the
Fund shall be considered an agency of
the United States and any officer or em-
ployee of the Fund shall be considered a
person in the civil service of the United
States.
642
(B) For purposes of section 1001 of
title 18, United States Code (relating to
false statements or entries), the Fund
shall be considered an agency of the
United States.
(2) CIVIL PENALTIES.—Officers and em-
ployees of the Fund shall be considered
officers and employees of the United
States for purposes of section 3729 of title
31, United States Code (relating to false
claims).
SEC. 814. MISCELLANEOUS PROVISIONS.
(a) ADMISSIBILITY OF RESOLUTION OFFER.—
No resolution offered by the Fund shall be ad-
missible in any legal action brought by an eli-
gible person against an insurer or by an in-
surer against an eligible person.
(b) RESOLUTION PROCESS NOT ADMISSION OF
LIABILITY.—No provision of this title, and no
action by an eligible person undertaken in
connection with any provision of this title
shall in any way constitute an admission of li-
ability in connection with the disposal of a
hazardous substance.
643
(c) PRECEDENTIAL EFFECT.—No provision
of this title shall affect or be construed to es-
tablish a precedent with respect to any insur-
ance dispute between any person and insurer
not subject to a stay under this title.
(d) SOVEREIGN IMMUNITY
OF
THE UNITED
STATES.—No obligation or liability of the Fund
shall constitute an obligation or liability of
the United States, or of any department, agen-
cy, instrumentality, officer, or employee
thereof. No person shall have a cause of ac-
tion of any kind against the United States, or
any department agency, instrumentality, offi-
cer, or employee thereof with respect to any
obligation, liability, or activity of the Fund.
SEC. 815. REPORTS.
(a) REPORT ON POTENTIAL FOR ESCALATION
OF EIRF LIABILITY.—Not later than the end of
the 5th year after enactment of this title, the
President shall submit a report to Congress
assessing the potential liability of the Fund
over the next 5-year period. The report shall
include recommendations for amendments to
address any shortfalls between the projected
potential liability of the Fund and the
644
amounts authorized to be raised over such 5-
year period.
(b) REPORT ON NON-NPL FACILITIES.—The
President shall conduct a study of the number
of non-NPL facilities and the average cleanup
cost per non-NPL facility and shall report his
findings not later than 3 years after the date
of enactment.
(c) ANNUAL REPORTS.—The Fund shall re-
port annually to the President and the Con-
gress not later than January 15 of each year
on its activities for the prior fiscal year. The
report shall include—
(1) a financial statement audited by
an independent auditor; and
(2) a determination of whether the
fees and assessments imposed by section
ll of the Internal Revenue Code of 1986
will be sufficient to meet the anticipated
obligations of the Fund.
(d) SPECIAL
REPORTS.—The Fund shall
promptly report to the President and the Con-
gress at any time the Fund determines that
the fees and assessments imposed by section
ll of the Internal Revenue Code of 1986 will
645
be insufficient to meet the anticipated obliga-
tions of the Fund.
SEC. 816. EFFECTIVE DATE.
(a) IN GENERAL.—This title shall take ef-
fect on the date of enactment of this Act.
(b) MINIMUM PARTICIPATION LEVEL BY ELI-
GIBLE PERSONS.—
(1) IDENTIFICATION OF LITIGATING ELIGI-
BLE
PERSONS.—Each insurance company
providing insurance coverage to eligible
persons shall submit to the Fund, within
30 days after the enactment of this Act, a
list of all eligible persons which filed suit
against that company for eligible costs
prior to the enactment of this Act and
shall notify each eligible person which is
on the list.
(2) REQUESTS
FOR
APPLICABLE
PER-
CENTAGE.—Each eligible person identified
on a list under paragraph (1) shall file a
request for its applicable percentage (as
determined under section 806(b)) with
the Fund within 60 days after the enact-
ment of this Act. The Fund shall deter-
mine the applicable percentage of the eli-
646
gible person and notify the eligible per-
son of such percentage within 90 days of
enactment. Each eligible person receiving
such notification shall decide whether to
accept or reject the applicable percent-
age determination within 135 days of en-
actment. An eligible person which has
made an early acceptance or rejection
pursuant 
to 
section 
807(b) 
shall 
be
deemed to have accepted or rejected its
applicable percentage, as the case may
be. Any eligible person which does not
file such a request within such period,
and any eligible person which files such
a request and does not reject the applica-
ble percentage determination within 135
days after the enactment of this Act, shall
be deemed to have accepted the deter-
mination solely for the purposes of this
section.
(3) MINIMUM
PARTICIPATION
LEVEL.—
Within 150 days after enactment, the
Fund shall determine—
(A) the number of eligible persons
on the list under paragraph (1), and
647
(B) the weighted average (as de-
termined under paragraph (4)) of
such eligible persons,
which have accepted or rejected applica-
ble percentage determinations under this
subsection. If more than 15 percent of the
eligible persons on such list or more than
a weighted average of 15 percent of such
eligible persons have rejected such deter-
minations, the provisions of this title and
the insurance fee provisions of title IX
shall cease to have any force and effect,
and any fees paid by insurance compa-
nies which have not been utilized for ad-
ministration of the Fund shall be re-
funded to those companies.
(4) WEIGHTED AVERAGE.—The weighted
average of eligible persons accepting or
rejecting applicable percentage deter-
minations shall be determined by mul-
tiplying the acceptances or rejections by
eligible persons listed under paragraph
(1) times the number of each such per-
son’s eligible facilities (without regard to
648
whether or not any such is the subject of
any lawsuit).
SEC. 817. TERMINATION OF AUTHORITY TO OFFER AND AC-
CEPT RESOLUTION.
(a) AUTHORITY TO ACCEPT REQUEST
FOR
RESOLUTION.—The authority of the Fund to ac-
cept requests for resolution shall terminate
on the date 10 years after the enactment of
this Act.
(b) AUTHORITY TO OFFER RESOLUTIONS.—
The authority of the Fund to offer resolutions
to eligible persons shall terminate after the
date 10 years and 180 days after the date of
the enactment of this Act.
(c) CONTINUING OBLIGATIONS.—Until termi-
nation of the Fund, the Fund shall continue
to—
(1) make payments pursuant to reso-
lution offers for any eligible facility
which is identified at the time of accept-
ance of the resolution offer or within 10
years after the enactment of this Act; or
(2) reimburse insurers with respect to
litigation commenced or continued in
connection with a resolution offer made
649
on or before the date 10 years after the
date of the enactment of this Act, where
the resolution offer was rejected by an el-
igible person or not acted upon by an eli-
gible person.
SEC. 818. TERMINATION OF FUND.
If, during any two-year calendar period
commencing after the date 10 years after the
date of the enactment of this Act, no eligible
person makes a claim to the Fund for pay-
ment of eligible costs, the Fund shall termi-
nate, and all amounts remaining in the Fund
shall be deposited in the General Fund of the
Treasury.
TITLE IX—TAXES
SEC. 901. AMENDMENTS TO THE INTERNAL REVENUE CODE
OF 1986.
(a) Section 59A(e)(1) of the Internal Reve-
nue Code of 1986 (26 U.S.C. 59A(e)(1)) is
amended by striking ‘‘January 1, 1996’’ and in-
serting instead ‘‘January 1, 2001’’.
(b) Section 4611(e) of the Internal Reve-
nue Code of 1986 (26 U.S.C. 4611(e)) is amend-
ed—
650
(1) in paragraph (1), by striking ‘‘De-
cember 31, 1986’’ and inserting instead
‘‘December 31, 1995’’;
(2) in paragraph (2)—
(A) by striking ‘‘December 31,
1993 or December 31, 1994’’ and in-
serting instead ‘‘December 31, 1998 or
December 31, 1999’’;
(B) by striking ‘‘December 31, of
1994 or 1995, respectively’’ and insert-
ing instead ‘‘December 31 of 1999 or
2000, respectively’’; and
(C) by striking ‘‘1994 or 1995’’ the
last place it appears and inserting in-
stead ‘‘1999 or 2000’’;
(3) in paragraph (3)(A), by striking
‘‘January 1, 1987, and ending December
31, 1995’’ and inserting instead ‘‘January
1, 1996, and ending December 31, 2000’’;
and
(4) in paragraph (3)(B)—
(A) in the title thereof, by striking
‘‘January 1, 1996’’ and inserting ‘‘Jan-
uary 1, 2001’’; and
651
(B) by striking ‘‘Fund before Jan-
uary 1, 1996’’ and inserting instead
‘‘Fund before January 1, 2001’’.
SEC. 902. ENVIRONMENTAL FEES AND ASSESSMENTS ON IN-
SURANCE COMPANIES.
(a) IN GENERAL.—The Internal Revenue
Code of 1986 is amended by inserting after
section ll the following new section:
‘‘SEC. 
. ENVIRONMENTAL FEES AND ASSESSMENTS ON
INSURANCE COMPANIES.
[RESERVED]
(b) CLERICAL AMENDMENTS.—The table of
sections for chapter ll of the Internal Reve-
nue Code of 1986 is amended by inserting
after the item relating to section ll the fol-
lowing:
‘‘Sec. 
. Environmental fees and assessments on
insurance companies.’’.
SEC. 903. FUNDING PROVISIONS FOR ENVIRONMENTAL IN-
SURANCE RESOLUTION FUND.
(A) IN GENERAL.—
(1) Except as provided in section
802(f)(7) of this Act, all expenditures of
the Resolution Fund shall be paid out of
the fees and assessments imposed by sec-
tion ll of the Internal Revenue Code.
652
(2) Except as may be expressly au-
thorized by the Secretary of the Treas-
ury, all funds of the Resolution Fund
shall be maintained in the Treasury of
the United States. The Secretary may
provide for the disbursement of such
funds to the Resolution Fund or on be-
half of the Resolution Fund under such
procedures, terms and conditions as the
Secretary may prescribe.
(b) TRANSFER TO RESOLUTION FUND.—The
Secretary of the Treasury shall transfer to the
Resolution Fund on October 1 of fiscal year
1995, 1996, 1997, 1998 and 1999, an amount
equal to the fees and assessments anticipated
to be collected pursuant to section ll of the
Internal Revenue Code of 1986 during the
then current fiscal year.
(c) ADJUSTMENTS.—In each succeeding fis-
cal year the Secretary of the Treasury shall
adjust the amounts transferred pursuant to
paragraph (2) to reflect actual collections of
fees and assessments during the prior fiscal
year, except that with respect to the transfer
made on October 1, 1999, the Resolution Fund
653
shall reimburse the Secretary the amount of
such transfer subsequently determined by the
Secretary to have exceeded actual collections
of fees and assessments during such fiscal
year.
SEC. 904. RESOLUTION FUND NOT SUBJECT TO TAX.
The Resolution Fund, including its cap-
ital, reserves, surplus, security holdings, and
income shall be exempt from all taxation now
or hereafter imposed by the United States (in-
cluding any territory, dependency or posses-
sion thereof) or any State, county, municipal-
ity or local taxing authority.
TITLE IX—TAXES
SEC. 901. AMENDMENTS TO THE INTERNAL REVENUE CODE
OF 1986.
(a) Section 59A(e)(1) of the Internal Revenue Code
of 1986 (26 U.S.C. 59A(e)(1)) is amended by striking
‘‘January 1, 1996’’ and inserting instead ‘‘January 1,
2001’’.
(b) Section 4611(e) of the Internal Revenue Code of
1986 (26 U.S.C. 4611(e)) is amended—
(1) in paragraph (1), by striking ‘‘December
31, 1986’’ and inserting instead ‘‘December 31,
1995’’;
654
(2) in paragraph (2)—
(A) by striking ‘‘December 31, 1993 or
December 31, 1994’’ and inserting instead
‘‘December 31, 1998 or December 31, 1999’’;
(B) by striking ‘‘December 31, of 1994 or
1995, respectively’’ and inserting instead ‘‘De-
cember 31 of 1999 or 2000, respectively’’; and
(C) by striking ‘‘1994 or 1995’’ the last
place it appears and inserting instead ‘‘1999 or
2000’’;
(3) in paragraph (3)(A), by striking ‘‘January
1, 1987, and ending December 31, 1995’’ and in-
serting instead ‘‘January 1, 1996, and ending De-
cember 31, 2000’’; and
(4) in paragraph (3)(B)—
(A) in the title thereof, by striking ‘‘Janu-
ary 1, 1996’’ and inserting ‘‘January 1, 2001’’;
and
(B) by striking ‘‘Fund before January 1,
1996’’ and inserting instead ‘‘Fund before Jan-
uary 1, 2001’’.
655
SEC. 902. ENVIRONMENTAL FEES AND ASSESSMENTS ON IN-
SURANCE COMPANIES.
(a) IN GENERAL.—The Internal Revenue Code of
1986 is amended by inserting after section ll the fol-
lowing new section:
‘‘SEC.
. ENVIRONMENTAL FEES AND ASSESSMENTS ON
INSURANCE COMPANIES.
[RESERVED]
(b) CLERICAL AMENDMENTS.—The table of sections
for chapter ll of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section
ll the following:
‘‘Sec.
. Environmental fees and assessments on insurance
companies.’’.
SEC. 903. FUNDING PROVISIONS FOR ENVIRONMENTAL IN-
SURANCE RESOLUTION FUND.
(A) IN GENERAL.—
(1) Except as provided in section 802(f)(7) of
this Act, all expenditures of the Resolution Fund
shall be paid out of the fees and assessments im-
posed by section ll of the Internal Revenue Code.
(2) Except as may be expressly authorized by
the Secretary of the Treasury, all funds of the Reso-
lution Fund shall be maintained in the Treasury of
the United States. The Secretary may provide for
the disbursement of such funds to the Resolution
656
Fund or on behalf of the Resolution Fund under
such procedures, terms and conditions as the Sec-
retary may prescribe.
(b) TRANSFER TO RESOLUTION FUND.—The Sec-
retary of the Treasury shall transfer to the Resolution
Fund on October 1 of fiscal year 1995, 1996, 1997, 1998
and 1999, an amount equal to the fees and assessments
anticipated to be collected pursuant to section ll of the
Internal Revenue Code of 1986 during the then current
fiscal year.
(c) ADJUSTMENTS.—In each succeeding fiscal year
the Secretary of the Treasury shall adjust the amounts
transferred pursuant to paragraph (2) to reflect actual
collections of fees and assessments during the prior fiscal
year, except that with respect to the transfer made on Oc-
tober 1, 1999, the Resolution Fund shall reimburse the
Secretary the amount of such transfer subsequently deter-
mined by the Secretary to have exceeded actual collections
of fees and assessments during such fiscal year.
SEC. 904. RESOLUTION FUND NOT SUBJECT TO TAX.
The Resolution Fund, including its capital, reserves,
surplus, security holdings, and income shall be exempt
from all taxation now or hereafter imposed by the United
States (including any territory, dependency or possession
657
thereof) or any State, county, municipality or local taxing
authority.
TITLE IX—ENVIRONMENTAL IN-
SURANCE 
RESOLUTION
TAXES AND TRUST FUND; 5-
YEAR 
EXTENSION 
OF 
HAZ-
ARDOUS 
SUBSTANCE
SUPERFUND
Subtitle A—Environmental Insur-
ance Resolution Taxes and Trust
Fund
SEC. 
901. 
ENVIRONMENTAL 
INSURANCE 
RESOLUTION
TAXES.
(a) GENERAL RULE.—Chapter 38 of the In-
ternal Revenue Code of 1986 (relating to envi-
ronmental taxes) is amended by adding at the
end the following new subchapter:
‘‘Subchapter E—Environmental Insurance
Resolution Taxes
‘‘Part I. Tax on persons with base-period exposure.
‘‘Part II. Tax on current-year premiums.
‘‘Part III. Assessment on insurers resolving claims
with Environmental Insurance Resolu-
tion Trust Fund.
‘‘Part IV. Termination; administrative provisions.
‘‘PART I—TAX ON PERSONS WITH BASE-PERIOD
EXPOSURE
‘‘Sec. 4691. Imposition of tax.
658
‘‘Sec. 4692. Adjusted base-period commercial pre-
miums.
‘‘Sec. 4693. Commercial net premiums.
‘‘Sec. 4694. Other definitions and special rules.
‘‘SEC. 4691. IMPOSITION OF TAX.
‘‘(a) GENERAL RULE.—There is hereby im-
posed on each assessable person engaged in
any trade or business during any calendar
year a tax for such calendar year equal to the
sum of—
‘‘(1)(A) such person’s adjusted base-pe-
riod commercial direct premiums, multi-
plied by
‘‘(B) the applicable direct funding
rate, and
‘‘(2)(A) such person’s adjusted base-pe-
riod commercial reinsurance premiums,
multiplied by
‘‘(B) the applicable reinsurance fund-
ing rate.
‘‘(b) APPLICABLE FUNDING RATES.—For pur-
poses of subsection (a)—
‘‘(1) 
APPLICABLE
DIRECT
FUNDING
RATE.—The applicable direct funding rate
is—
‘‘(A) 0.22 percent for 1995, 1996,
1997, and 1998, and
659
‘‘(B) zero thereafter.
‘‘(2) APPLICABLE REINSURANCE FUNDING
RATE.—The applicable reinsurance fund-
ing rate is—
‘‘(A) 0.83 percent for 1995, 1996,
1997, and 1998, and
‘‘(B) 0.14 percent thereafter.
‘‘(c) ADJUSTED DIRECT
AND REINSURANCE
PREMIUMS.—For purposes of subsection (a)—
‘‘(1) ADJUSTED
BASE-PERIOD
COMMER-
CIAL
DIRECT
PREMIUMS.—The term ‘ad-
justed base-period commercial direct pre-
miums’ means an amount equal to the
percentage of the aggregate adjusted
base-period commercial premiums which
is the same percentage as the percentage
of the sum described in section 4692(a)(1)
which is attributable to net premiums
written from qualified commercial poli-
cies (other than reinsurance policies).
‘‘(2) ADJUSTED
BASE-PERIOD
COMMER-
CIAL
REINSURANCE
PREMIUMS.—The term
‘adjusted base-period commercial reinsur-
ance premiums’ means adjusted base-pe-
riod commercial premiums which are not
660
adjusted base-period commercial direct
premiums.
‘‘(d) TIME FOR PAYMENT OF TAX.—
‘‘(1) MONTHLY INSTALLMENTS.—The tax
imposed by subsection (a) on any assess-
able person for any calendar year shall be
paid in equal monthly installments dur-
ing such calendar year.
‘‘(2) DUE DATE FOR INSTALLMENT.—Any
installment under paragraph (1) for any
month shall be paid on or before the last
day of such month.
‘‘(e) ASSESSABLE PERSON.—For purposes of
this part, the term ‘assessable person’ means
any person—
‘‘(1) which has commercial net pre-
miums for any base-period year; and
‘‘(2) which is—
‘‘(A) a United States person, or
‘‘(B) a person (other than a United
States person) if—
‘‘(i) such person, during the
calendar year for which the tax
would be assessed, is engaged in
661
any trade or business within the
United States, and
‘‘(ii) such person’s taxable in-
come which is effectively con-
nected with the conduct of such
business is taxed under section
871(b) or 882(a) and is not exempt
from such tax under a treaty obli-
gation of the United States.
‘‘SEC. 4692. ADJUSTED BASE-PERIOD COMMERCIAL PRE-
MIUMS.
‘‘(a) GENERAL RULE.—For purposes of this
part, the adjusted base-period commercial pre-
miums of any person is the excess (if any) of—
‘‘(1) the sum of the inflation-adjusted
commercial premiums of such person for
each base-period year, over
‘‘(2) the exemption amount.
‘‘(b) INFLATION-ADJUSTED COMMERCIAL PRE-
MIUMS.—For purposes of this part, the infla-
tion-adjusted commercial premiums of any
person for any base-period year shall be an
amount equal to the commercial net premiums
of such person for such base-period year multi-
662
plied by the inflation adjustment factor for
such base-period year.
‘‘(c) INFLATION ADJUSTMENT FACTOR.—
‘‘In the case of the following
The inflation
base-period years:
adjustment factor is:
1968 ................................................................................
3.09
1969 ................................................................................
2.93
1970 ................................................................................
2.77
1971 ................................................................................
2.66
1972 ................................................................................
2.57
1973 ................................................................................
2.42
1974 ................................................................................
2.18
1975 ................................................................................
2.00
1976 ................................................................................
1.89
1977 ................................................................................
1.78
1978 ................................................................................
1.65
1979 ................................................................................
1.48
1980 ................................................................................
1.31
1981 ................................................................................
1.18
1982 ................................................................................
1.12
1983 ................................................................................
1.08
1984 ................................................................................
1.04
1985 ................................................................................
1.00
‘‘(d) EXEMPTION AMOUNT.—For purposes of
this section—
‘‘(1) 
IN
GENERAL.—The 
exemption
amount for any person is $50,000,000.
‘‘(2) AGGREGATION
RULES.—For pur-
poses of paragraph (1)—
‘‘(A) 
IN
GENERAL.—All 
persons
treated as a single employer as of Feb-
ruary 2, 1994, under subsection (a) or
(b) of section 52 shall be treated as 1
person.
‘‘(B) JOINT UNDERWRITING.—
663
‘‘(i) IN GENERAL.—In the case of
any joint underwriting operation
of insurance or reinsurance—
‘‘(I) under which the par-
ticipating persons assume a
portion of the business written
and share pro rata in the pre-
miums, losses, expenses, and
profits, and
‘‘(II) which is under the
management of 1 or more
managing underwriters,
such participating persons as of
February 2, 1994, shall be treated
as 1 person.
‘‘(ii) COMMONLY GOVERNED UN-
DERWRITING
OPERATIONS.—If more
than 1 operation referred to in
clause (i) is governed by a com-
mon board of directors, council, or
similar body, all such operations
shall be treated as 1 operation for
purposes of clause (i).
‘‘(iii) CERTAIN CLOSING AGREE-
MENTS.—If any person participat-
664
ing in a joint underwriting oper-
ation is subject to a closing agree-
ment as of February 2, 1994, with
respect to such operation, such
person and all other persons sub-
ject to such agreement shall be
treated as 1 person.
‘‘(C) 
ALLOCATION
OF
EXEMPTION
AMOUNT.—The exemption amount de-
termined under paragraph (1) shall
be allocated among persons treated as
1 person—
‘‘(i) under subparagraph (A)
or (B)(i) in proportion to each
such person’s respective share of
the aggregate of the amounts de-
scribed in subsection (a)(1) of all
such persons, and
‘‘(ii) in any other case, using
any other method prescribed by
the Secretary.
‘‘SEC. 4693. COMMERCIAL NET PREMIUMS.
‘‘(a) GENERAL RULE.—For purposes of this
part, the commercial net premiums of any per-
son for any base-period year is the sum of—
665
‘‘(1) the net premiums written for such
base-period year from qualified commer-
cial policies (other than reinsurance poli-
cies),
‘‘(2) the net premiums written for such
year from allocated reinsurance of quali-
fied commercial policies, and
‘‘(3) 21 percent of the net premiums
written for such year from unallocated re-
insurance.
Commercial net premiums shall be determined
by taking into account only premiums attrib-
utable to insurance or reinsurance against, or
with respect to, hazards, risks, losses, or liabil-
ities within the United States.
‘‘(b) QUALIFIED COMMERCIAL POLICIES.—For
purposes of this subchapter—
‘‘(1) IN GENERAL.—The term ‘qualified
commercial policy’ means any insurance
policy against, or with respect to, haz-
ards, risks, losses, or liabilities within the
United States if premiums or liabilities
under such policy—
‘‘(A) are of a type required to be
reported in the line of the underwrit-
666
ing and investment exhibit of the an-
nual statement relating to the com-
mercial multiple peril line of busi-
ness, or
‘‘(B) are of a type required to be
reported in the line of the underwrit-
ing and investment exhibit of the an-
nual statement relating to the other
liability line of business.
‘‘(2) EXCLUSION
OF
CERTAIN
TYPES
OF
POLICIES.—Subparagraph 
(B) 
of 
para-
graph (1) shall not apply to—
‘‘(A) any policy providing only
noncommercial coverage, or
‘‘(B) any other policy which pro-
vides neither comprehensive general
liability coverage nor environmental
liability coverage.
‘‘(c) ALLOCATED
REINSURANCE.—For pur-
poses of this part, the term ‘allocated reinsur-
ance’ means any reinsurance the net pre-
miums written for which were reported on the
underwriting and investment exhibit of the an-
nual statement by the line of business related
to the underlying policies covered by such rein-
667
surance (or, in the case of a person not filing
an annual statement, would have been re-
quired to be so reported) and were not reported
as part of the reinsurance line of business.
‘‘(d) UNALLOCATED REINSURANCE.—For pur-
poses of this part, the term ‘unallocated rein-
surance’ means any reinsurance the net pre-
miums written for which were reported in the
line of the underwriting and investment ex-
hibit of the annual statement relating to the
reinsurance line of business (or, in the case of
a person not filing an annual statement,
would have been required to be so reported).
‘‘(e) 
REINSURANCE
BY
RELATED
PARTY
TREATED AS NOT REINSURANCE.—For purposes
of this part, if, with respect to a policy of rein-
surance, the reinsurer and the reinsured are
members of the same controlled group, pre-
miums written on such reinsurance shall be
treated as premiums described in section
4693(a)(1) and not as premiums written on re-
insurance. For purposes of the preceding sen-
tence, the term ‘controlled group’ means all
persons treated as a single employer under sec-
tion 52(a), and, to the extent provided by the
668
Secretary, all persons who are commonly man-
aged by the same corporation.
‘‘SEC. 4694. OTHER DEFINITIONS AND SPECIAL RULES.
‘‘(a) GENERAL DEFINITIONS.—For purposes
of this part—
‘‘(1) BASE PERIOD.—
‘‘(A) IN GENERAL.—The term ‘base
period’ means the 18-calendar year pe-
riod beginning with calendar year
1968 and ending with calendar year
1985.
‘‘(B) BASE-PERIOD YEAR.—The term
‘base-period year’ means any calendar
year in the base period.
‘‘(2) NET PREMIUMS WRITTEN.—
‘‘(A) IN GENERAL.—The determina-
tion of the net premiums written of
any person for any year shall be made
on the basis of the underwriting and
investment exhibit of the annual state-
ment filed by such person for such
year (or, if such person did not file
such a statement, the determination
shall be made on a basis consistent
669
with the annual statement require-
ments applicable to such year).
‘‘(B) AMOUNTS
MAY
BE
LESS
THAN
ZERO.—The amount taken into ac-
count as the net premiums written
with respect to any type of policy for
any year may be less than zero.
‘‘(3) ANNUAL
STATEMENT.—The term
‘annual statement’ means the annual
statement approved by the National Asso-
ciation 
of 
Insurance 
Commissioners
which is required to be filed with the in-
surance regulatory authorities of a State.
If any person was required to file an an-
nual statement with the authorities of 2
or more different States for any base-pe-
riod year, the annual statement used for
purposes of this part shall be the annual
statement in which the net premiums
written related to reinsurance were re-
ported and identified in the most specific
manner in the underwriting and invest-
ment exhibit.
‘‘(4) POLICY.—The term ‘policy’ in-
cludes any policy or other instrument by
670
whatever name called whereby a contract
of insurance or reinsurance is made, con-
tinued, or renewed.
‘‘(5) UNITED STATES.—
‘‘(A) 
IN
GENERAL.—The 
term
‘United States’, when used in a geo-
graphical sense, has the meaning
given such term by section 4612(a)(4).
‘‘(B) UNITED STATES PERSON.—Sub-
paragraph (A) shall not apply for pur-
poses of determining whether any per-
son is a United States person.
‘‘(b) SPECIAL RULE FOR INSURERS NOT RE-
QUIRED
TO FILE ANNUAL STATEMENT.—If any
person—
‘‘(1) was not required to file an an-
nual statement for any year,
‘‘(2) establishes to the satisfaction of
the Secretary that, despite the best efforts
of such person, such person has inad-
equate records to make determinations
consistent with the annual statement re-
porting requirements of this part for such
year, and
671
‘‘(3) provides, in a manner acceptable
to the Secretary, a reasonable estimate of
such determinations,
then such person shall be treated as meeting
such requirements for such year.
‘‘(c) ADJUSTMENT
FOR
CERTAIN
ACQUISI-
TIONS, ETC.—Except as otherwise provided by
the Secretary—
‘‘(1) ACQUISITIONS.—If, after the begin-
ning of the base period, a person acquires
any portion of a commercial insurance
business of another person (hereinafter in
this subsection referred to as the ‘prede-
cessor’), the inflation-adjusted commer-
cial premiums of the acquiring person
shall include the inflation-adjusted com-
mercial premiums of such predecessor
which are attributable to the portion of
such insurance business so acquired.
‘‘(2) DISPOSITIONS.—If, after the begin-
ning of the base period—
‘‘(A) a person disposes of any por-
tion of a commercial insurance busi-
ness in a transaction to which para-
graph (1) applies, and
672
‘‘(B) such person furnishes the ac-
quiring person with such information
as is necessary for the application of
paragraph (1),
then the inflation-adjusted commercial
premiums of the person making such dis-
position shall be reduced by the portion of
such premiums attributable to the portion
of such insurance business involved in
such disposition.
‘‘(3) 
TREATMENT
OF
REINSURANCE
TRANSACTIONS.—For purposes of this sub-
section—
‘‘(A) IN GENERAL.—Except as other-
wise provided in this paragraph, a re-
insurance transaction shall not be
treated as the disposition of a portion
of an insurance business by the rein-
sured nor as an acquisition of such a
portion by the reinsurer if, as a result
of such transaction, there is—
‘‘(i) a reduction in the net pre-
miums written of the reinsured,
and
673
‘‘(ii) 
an 
increase 
(in 
an
amount equal to the amount of
such reduction) in the net pre-
miums written of the reinsurer.
‘‘(B) TREATMENT OF CERTAIN REIN-
SURANCE
TRANSACTIONS.—If, after De-
cember 31, 1985, and before February
2, 1994, any person transferred any in-
surance business in an assumption re-
insurance transaction with respect to
qualified commercial policies that
were issued during the base period
whereby the reinsurer becomes di-
rectly liable on the qualified commer-
cial policies transferred, such trans-
action shall be treated for purposes of
paragraphs (1) and (2) as a disposi-
tion of a portion of a commercial in-
surance business by the reinsured and
as an acquisition of such a portion by
the reinsurer.
‘‘(C) TREATMENT OF CERTAIN TERMI-
NATIONS
OF
REINSURANCE
TRANS-
ACTIONS.—If, after the beginning of the
base period and before February 2,
674
1994, a reinsurance transaction with
respect to qualified commercial poli-
cies is terminated in accordance with
a commutation agreement whereby
the reinsurer is no longer liable for
any potential claim under the reinsur-
ance agreement, the determination of
the adjusted base-period commercial
premiums of the reinsured and the re-
insurer shall be made as if such rein-
surance transaction had not occurred.
‘‘(4) SPECIAL RULES.—
‘‘(A) 
ADJUSTMENT
OF
ADJUSTED
BASE-PERIOD
PREMIUMS
FOR
ACQUISI-
TIONS AND DISPOSITIONS ON OR AFTER
FEBRUARY 2, 1994.—In the case of an ac-
quisition or disposition on or after
February 2, 1994, paragraphs (1) and
(2) shall be applied by substituting
‘adjusted base-period commercial pre-
miums’ for ‘inflation-adjusted com-
mercial premiums’ each place it ap-
pears.
‘‘(B) TIMING OF EFFECT OF TRANS-
ACTIONS ON COMPUTATION OF TAXES.—If
675
any acquisition or disposition referred
to in paragraph (1) or (2) occurs after
December 31, 1994, the provisions of
this subsection shall apply only for
purposes of determining the amount
of the tax imposed by section 4691 for
calendar years beginning after the
date of such transaction.
‘‘(C) DETERMINATION OF PREMIUMS
ATTRIBUTABLE
TO
PORTION
OF
INSUR-
ANCE BUSINESS.—The determination of
inflation-adjusted 
commercial 
pre-
miums and adjusted base-period com-
mercial premiums attributable to the
transferred portion of a commercial
insurance business shall be made
based on the ratio of assets trans-
ferred in connection with the commer-
cial insurance business to total assets
of the transferor immediately before
such transfer.
‘‘(D) 
TRANSFERORS
REMAIN
SEC-
ONDARILY
LIABLE.—Notwithstanding
any reduction in the inflation-ad-
justed commercial premiums or ad-