118
sions to be made under paragraphs (1) and (3) of 
subsection (i), to report on a consolidated basis all 
of the information necessary to determine the pay-
ment level under this subtitle and pay to the Fund 
on a consolidated basis. 
(2) ELECTION.—If an affiliated group elects 
consolidation as provided in this subsection—
(A) for purposes of this Act other than 
this subsection, the affiliated group shall be 
treated as if it were a single participant, includ-
ing with respect to the assessment of a single 
annual payment under this subtitle for the en-
tire affiliated group; 
(B) the ultimate parent of the affiliated 
group shall prepare and submit each submission 
to be made under subsection (i) on behalf of the 
entire affiliated group and shall be solely liable, 
as between the Administrator and the affiliated 
group only, for the payment of the annual 
amount due from the affiliated group under this 
subtitle, except that, if the ultimate parent does 
not pay when due any payment obligation for 
the affiliated group, the Administrator shall 
have the right to seek payment of all or any 
portion of the entire amount due (as well as
119
any other amount for which the affiliated group 
may be liable under sections 223 and 224) from 
any member of the affiliated group; 
(C) all members of the affiliated group 
shall be identified in the submission under sub-
section (i) and shall certify compliance with this 
subsection and the Administrator’s regulations 
implementing this subsection; and 
(D) the obligations under this subtitle shall 
not change even if, after the date of enactment 
of this Act, the beneficial ownership interest be-
tween any members of the affiliated group shall 
change. 
(3) CAUSE OF ACTION.—Notwithstanding sec-
tion 221(e), this Act shall not preclude actions 
among persons within an affiliated group with re-
spect to the payment obligations under this Act. 
(g) DETERMINATION OF PRIOR ASBESTOS EXPENDI-
TURES.—
(1) IN GENERAL.—For purposes of determining 
a defendant participant’s prior asbestos expendi-
tures, the Administrator shall prescribe such rules 
as may be necessary or appropriate to assure that 
payments by indemnitors before December 31, 2002, 
shall be counted as part of the indemnitor’s prior as-
120
bestos expenditures, rather than the indemnitee’s 
prior asbestos expenditures, in accordance with this 
subsection. 
(2) INDEMNIFIABLE COSTS.—If an indemnitor 
has paid or reimbursed to an indemnitee any 
indemnifiable cost or otherwise made a payment on 
behalf of or for the benefit of an indemnitee to a 
third party for an indemnifiable cost before Decem-
ber 31, 2002, the amount of such indemnifiable cost 
shall be solely for the account of the indemnitor for 
purposes under this Act. 
(3) INSURANCE PAYMENTS.—When computing 
the prior asbestos expenditures with respect to an 
asbestos claim, any amount paid or reimbursed by 
insurance shall be solely for the account of the 
indemnitor, even if the indemnitor would have no di-
rect right to the benefit of the insurance, if—
(A) such insurance has been paid or reim-
bursed to the indemnitor or the indemnitee, or 
paid on behalf of or for the benefit of the 
indemnitee; and 
(B) the indemnitor has either, with respect 
to such asbestos claim or any similar asbestos 
claim, paid or reimbursed to its indemnitee any 
indemnifiable cost or paid to any third party on
121
behalf of or for the benefit of the indemnitee 
any indemnifiable cost. 
(h) MINIMUM ANNUAL PAYMENTS.—
(1) IN GENERAL.—Except as provided under 
subsection (m), the aggregate annual payments of 
defendant participants to the Fund shall be at least 
$2,500,000,000 for each calendar year in the first 
23 years of the Fund, or until such shorter time as 
the condition set forth in subsection (a)(2) of this 
section is attained. 
(2) GUARANTEED PAYMENT ACCOUNT.—To the 
extent payments in accordance with sections 202 
and 203 (as modified by subsections (b), (d), (f) and 
(g) of this section) fail in any year to raise at least 
$2,500,000,000 net of any adjustments under sub-
section (d), the balance needed to meet this required 
minimum aggregate annual payment shall be ob-
tained from the defendant guaranteed payment ac-
count established under subsection (k). 
(3) GUARANTEED PAYMENT SURCHARGE.—To 
the extent the procedure set forth in paragraph (2) 
is insufficient to satisfy the required minimum ag-
gregate annual payment net of any adjustments 
under subsection (d), the Administrator may assess
122
a guaranteed payment surcharge under subsection 
(l). 
(i) PROCEDURES FOR MAKING PAYMENTS.—
(1) INITIAL YEAR: TIERS II–VI.—
(A) IN
GENERAL.—Not later than 180 
days after enactment of this Act, each defend-
ant participant that is included in Tiers II, III, 
IV, V, or VI shall file with the Administrator—
(i) a statement of whether the defend-
ant participant irrevocably elects to report 
on a consolidated basis under subsection 
(f); 
(ii) a good faith estimate of its prior 
asbestos expenditures; 
(iii) a statement of its 2002 revenues, 
determined in accordance with section 
203(a)(2); and 
(iv) payment in the amount specified 
in section 203 for the lowest subtier of the 
tier within which the defendant participant 
falls, except that if the defendant partici-
pant, or the affiliated group including the 
defendant participant, had 2002 revenues 
exceeding $3,000,000,000, it or its affili-
ated group shall pay the amount specified
123
for Subtier 3 of Tiers II, III, or IV or 
Subtier 2 of Tiers V or VI, depending on 
the applicable Tier. 
(B) RELIEF.—The Administrator shall es-
tablish procedures to grant a defendant partici-
pant relief from its initial payment obligation 
where the participant shows that it is likely to 
qualify for a financial hardship adjustment, and 
that failure to provide interim relief would 
cause severe irreparable harm. The Administra-
tor’s refusal to grant such relief is subject to 
immediate judicial review under section 303. 
(2) INITIAL YEAR: TIER I.—Not later than 90 
days after enactment of this Act, each debtor shall 
file with the Administrator—
(A) a statement identifying the bankruptcy 
case(s) associated with the debtor; 
(B) a statement whether its prior asbestos 
expenditures exceed $1,000,000; 
(C) a statement whether it has material 
continuing business operations and, if not, 
whether it holds cash or other assets that have 
been allocated or earmarked for asbestos settle-
ments;
124
(D) in the case of debtors falling within 
Subtier 1 of Tier I, a statement of the debtor’s 
2002 revenues, determined in accordance with 
section 203(a)(2), and a payment under section 
203(b)(2)(B); 
(E) in the case of debtors falling within 
Subtier 2 of Tier I, an assignment of its assets 
under section 203(b)(3)(B); and 
(F) in the case of debtors falling within 
Subtier 3 of Tier I, a payment under section 
203(b)(4)(B), and a statement of how such 
payment was calculated. 
(3) INITIAL YEAR: TIER VII.—Not later than 90 
days after enactment of this Act, each defendant 
participant in Tier VII shall file with the Adminis-
trator—
(A) a good faith estimate of all payments 
of the type described in section 203(h)(1) (as 
modified by section 203(h)(6)); 
(B) a statement of revenues calculated in 
accordance with sections 203(a)(2) and 203(h); 
and 
(C) payment in the amount specified in 
section 203(h).
125
(4) NOTICE TO PARTICIPANTS.—Not later than 
240 days after enactment of this Act, the Adminis-
trator shall—
(A) directly notify all reasonably identifi-
able defendant participants of the requirement 
to submit information necessary to calculate the 
amount of any required payment to the Fund; 
and 
(B) publish in the Federal Register a no-
tice setting forth the criteria in this Act, and as 
prescribed by the Administrator in accordance 
with this Act, for paying under this subtitle as 
a defendant participant and requiring any per-
son who may be a defendant participant to sub-
mit such information. 
(5) RESPONSE REQUIRED.—
(A) IN
GENERAL.—Any person who re-
ceives notice under paragraph (4)(A), and any 
other person meeting the criteria specified in 
the notice published under paragraph (4)(B), 
shall provide the Administrator with an address 
to send any notice from the Administrator in 
accordance with this Act and all the informa-
tion required by the Administrator in accord-
126
ance with this subsection no later than the ear-
lier of—
(i) 30 days after the receipt of direct 
notice; or 
(ii) 30 days after the publication of 
notice in the Federal Register. 
(B) CERTIFICATION.—The response sub-
mitted under subparagraph (A) shall be signed 
by a responsible corporate officer, general part-
ner, proprietor, or individual of similar author-
ity, who shall certify under penalty of law the 
completeness and accuracy of the information 
submitted. 
(C) CONSENT TO AUDIT AUTHORITY.—The 
response submitted under subparagraph (A) 
shall include, on behalf of the defendant partici-
pant or affiliated group, a consent to the Ad-
ministrator’s audit authority under section 
221(d). 
(6) NOTICE OF INITIAL DETERMINATION.—
(A) IN GENERAL.—Not later than 60 days 
after receiving a response under paragraph (5), 
the Administrator shall send the person a notice 
of initial determination identifying the tier and 
subtier, if any, into which the person falls and