cerning environmental site assessments in the trans-
fer of real property in the United States. Any such
standards issued or designated by the Administrator
shall also be deemed to constitute commercially rea-
sonable and generally accepted standards and prac-
tices for purposes of this paragraph. In issuing or
designating any such standards, the Administrator
shall consider requirements governing each of the
following:
‘‘(A) Interviews of owners, operators, and
occupants of the property to determine informa-
tion regarding the potential for contamination.
‘‘(B) Review of historical sources as nec-
essary to determine previous uses and occupan-
cies of the property since the property was first
developed. For purposes of this subclause, the
term ‘historical sources’ means any of the fol-
lowing, if they are reasonably ascertainable: re-
corded chain of title documents regarding the
real property, including all deeds, easements,
leases, restrictions, and covenants, aerial photo-
graphs, fire insurance maps, property tax files,
USGS 7.5 minutes topographic maps, local
street directories, building department records,
zoning/land use records, and any other sources
that identify past uses and occupancies of the
property.
‘‘(C) Determination of the existence of re-
corded environmental cleanup liens against the
real property which have arisen pursuant to
Federal, State, or local statutes.
‘‘(D) Review of reasonably ascertainable
Federal, State, and local government records of
sites or facilities that are likely to cause or con-
tribute to contamination at the real property,
including, as appropriate, investigation reports
for such sites or facilities; records of activities
likely to cause or contribute to contamination at
the real property, including landfill and other
disposal location records, underground storage
tank records, hazardous waste handler and gen-
erator records and spill reporting records; and
such other reasonably ascertainable Federal,
State, and local government environmental
records which could reflect incidents or activi-
ties which are likely to cause or contribute to
contamination at the real property.
‘‘(E) A visual site inspection of the real
property and all facilities and improvements on
the real property and a visual inspection of im-
mediately adjacent properties, including an in-
vestigation of any hazardous substance use,
storage, treatment, and disposal practices on
the property.
‘‘(F) Any specialized knowledge or experi-
ence on the part of the defendant.
‘‘(G) The relationship of the purchase
price 
to 
the 
value 
of 
the 
property 
if
uncontaminated.
‘‘(H) Commonly known or reasonably as-
certainable information about the property.
‘‘(I) The obviousness of the presence or
likely presence of contamination at the prop-
erty, and the ability to detect such contamina-
tion by appropriate investigation.
A record shall be considered to be ‘reasonably ascer-
tainable’ for purposes of this paragraph if a copy or
reasonable facsimile of the record is publicly avail-
able by request (within reasonable time and cost
constraints) and the record is practically reviewable.
‘‘(3) MAINTENANCE
OF
INFORMATION.—No
presumption shall arise under paragraph (1) unless
the defendant has maintained a compilation of the
information reviewed and gathered in the course of
the environmental site assessment.’’.
(b) CROSS REFERENCE.—Section 101(35)(B) (42
U.S.C. 9601(35)(B)) is amended by inserting after ‘‘all
appropriate inquiry’’ the following: ‘‘(as specified in sec-
tion 107(o))’’.
SEC. 6. BONA FIDE PROSPECTIVE PURCHASER LIABILITY.
(a) LIABILITY.—Section 107 the Comprehensive En-
vironmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 and following) is further amended
by adding at the end the following new subsections:
‘‘(r) BONA FIDE PROSPECTIVE PURCHASER.—(1)
Notwithstanding paragraphs (1) through (4) of subsection
(a), a person who does not impede the performance of a
response action or natural resource restoration at a facil-
ity shall not be liable to the extent liability at such facility
is based solely on paragraph (1) of subsection (a) for a
release or threat of release from the facility, and the per-
son is a bona fide prospective purchaser of the facility.
‘‘(2) For purposes of this subsection, the term ‘bona
fide prospective purchaser’ means a person who acquires
ownership of a facility after the date of enactment of this
subsection, or a tenant of such a person, who can establish
each of the following by a preponderance of the evidence:
‘‘(A) All active disposal of hazardous substances
at the facility occurred before that person acquired
the facility.
‘‘(B) The person made all appropriate inquiry
into the previous ownership and uses of the facility
and its real property in accordance with generally
accepted commercial and customary standards and
practices. Standards described in subsection (q)(2)
(relating to innocent landowners) shall satisfy the
requirements of this subparagraph. In the case of
property for residential or other similar use, pur-
chased by a nongovernmental or noncommercial enti-
ty, a site inspection and title search that reveal no
basis for further investigation satisfy the require-
ments of this subparagraph.
‘‘(C) The person provided all legally required
notices with respect to the discovery or release of
any hazardous substances at the facility.
‘‘(D) The person exercised appropriate care
with respect to hazardous substances found at the
facility by taking reasonable steps to stop on-going
releases, prevent threatened future releases of haz-
ardous substances, and prevent or limit human or
natural resource exposure to hazardous substances
previously released into the environment.
‘‘(E) The person provides full cooperation, as-
sistance, and facility access to persons authorized to
conduct response actions at the facility, including
the cooperation and access necessary for the installa-
tion, integrity, operation, and maintenance of any
complete or partial response action at the facility.
‘‘(F) The person is not affiliated with any other
person liable for response costs at the facility,
through any direct or indirect familial relationship,
or any contractual, corporate, or financial relation-
ship other than that created by the instruments by
which title to the facility is conveyed or financed.
‘‘(s) PROSPECTIVE
PURCHASER
AND
WINDFALL
LIEN.—(1) In any case in which there are unrecovered
response costs at a facility for which an owner of the facil-
ity is not liable by reason of subsection (r), and the condi-
tions described in paragraph (2) are met, the United
States shall have a lien upon such facility for such unre-
covered costs. Such lien—
‘‘(A) shall not exceed the increase in fair mar-
ket value of the property attributable to the response
action at the time of a subsequent sale or other dis-
position of property;
‘‘(B) shall arise at the time costs are first in-
curred by the United States with respect to a re-
sponse action at the facility;
‘‘(C) shall be subject to the requirements for
notice and validity established in paragraph (3) of
subsection (l); and
‘‘(D) shall continue until the earlier of satisfac-
tion of the lien or recovery of all response costs in-
curred at the facility.
‘‘(2) The conditions referred to in paragraph (1) are
the following:
‘‘(A) A response action for which there are un-
recovered costs is carried out at the facility.
‘‘(B) Such response action increases the fair
market value of the facility above the fair market
value of the facility that existed within 6 months be-
fore the response action was taken.’’.
SEC. 7. INNOCENT GOVERNMENTAL ENTITIES.
Section 107 the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 and following) is further amended by adding
at the end the following new subsection:
‘‘(t) INNOCENT GOVERNMENTAL ENTITIES.—There
shall be no liability under subsection (a) for any State or
local government if such liability is based solely on—
‘‘(A) the granting of a license or permit to con-
duct business; or
‘‘(B) the State or local government’s status as
an owner or operator of the facility or vessel, and
the State or local government—
‘‘(i) acquired the facility or vessel by es-
cheat or through any other involuntary transfer
or through the exercise of eminent domain, and
‘‘(ii) establishes by a preponderance of the
evidence that it—
‘‘(I) acquired the facility or vessel
after the disposal or placement of the haz-
ardous substances for which liability is al-
leged;
‘‘(II) did not, by any act or omission,
cause or contribute to the release or
threatened release of such hazardous sub-
stances; and
‘‘(III) exercised appropriate care with
respect to such hazardous substances tak-
ing into consideration the characteristics of
such hazardous substances, in light of all
relevant facts, circumstances, and generally
accepted good commercial and customary
standards and practices at the time of the
defendant’s acts or omissions.’’.
SEC. 8. CONTIGUOUS PROPERTIES.
Section 107 the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 and following) is further amended by adding
at the end the following new subsection:
‘‘(u) CONTIGUOUS
PROPERTIES.—(1) A person
(other than the United States or a department, agency,
or instrumentality of the United States) who owns or oper-
ates real property that is contiguous to or otherwise simi-
larly situated with respect to real property on which there
has been a release or threatened release of a hazardous
substance and that is or may be contaminated by such
release shall not be liable under subsection (a) (1) or (2)
by reason of such ownership or operation solely by reason
of such contamination if such person—
‘‘(A) did not cause, contribute to, or consent to
the release or threatened release;
‘‘(B) provides full cooperation, assistance, and
facility access to persons authorized to conduct re-
sponse actions at the facility, including the coopera-
tion and access necessary for the installation, integ-
rity, operation, and maintenance of any complete or
partial response action at the facility; and
‘‘(C) is not affiliated with any other person lia-
ble for response costs at the facility, through any di-
rect or indirect familial relationship, or any contrac-
tual, corporate, or financial relationship.
‘‘(2) The President may issue an assurance of no en-
forcement action under this Act to any such person and
may grant any such person protection against cost recov-
ery and contribution actions pursuant to section 113(f)(2).
Such person may also petition the President to exclude
from the description of a National Priorities List site such
contiguous real property, if such property is or may be
contaminated solely by ground water that flows under
such property and is not used as a source of drinking
water. The President may grant such a petition pursuant
to such procedures as he deems appropriate.’’.
SEC. 9. REMEDY SELECTION.
Section 121 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 is
amended as follows:
(1) By inserting the following before the period
at the end of the first sentence in subsection (b)(1):
‘‘to the extent practicable, considering the nature
and timing of reasonably anticipated uses of land,
water, and other resources’’.
(2) By adding after the first sentence in sub-
section (b)(1): ‘‘The preferences for treatment or
permanent solutions in this paragraph shall not
apply to a treatment option or permanent solution
that would increase risk to the community or to
workers’ health.’’
(3) By striking ‘‘maximum’’ in the penultimate
sentence of subsection (b)(1).
(4) By striking ‘‘or is relevant and appropriate’’
and ‘‘or relevant and appropriate’’ in subsection
(d)(2)(A).
(5) By striking ‘‘Level Goals’’ in subsection
(d)(2)(A) and inserting ‘‘Levels’’.
(6) By striking ‘‘and water quality criteria es-
tablished under section 304 or 303 of the Clean
Water Act where such goals or criteria are relevant
and appropriate under the circumstances of the re-
lease of threatened release’’ in subsection (d)(2)(A)
and inserting ‘‘where such levels are relevant and
appropriate under the circumstances of the release
of threatened release, considering the timing of any
reasonably anticipated use of water as drinking
water and reasonable points of compliance’’.
(7) In subsection (d)(2)(B) by striking clause
(i), striking ‘‘(ii)’’, and redesignating subclauses (I)
through (III) as clauses (i) through (iii).
(8) By adding the following new subsection at
the end thereof:
‘‘(g) RISK ASSESSMENT
AND CHARACTERIZATION
PRINCIPLES.—Risk assessments and characterizations
conducted for remedial actions subject to this section
shall—
‘‘(1) provide scientifically objective assessments,
estimates, and characterizations which neither mini-
mize nor exaggerate the nature and magnitude of
risks to human health and the environment;
‘‘(2) be based on the best available scientific
and technical information, including data on bio-
availability and site-specific information; and
‘‘(3) be based on an analysis of the weight of
the scientific evidence that supports conclusions
about a problem’s potential risk to human health
and the environment.’’.
SEC. 10. BROWNFIELDS GRANTS.
(a) IN GENERAL.—Title I of the Comprehensive En-
vironmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.) is amended by adding at
the end the following:
‘‘SEC. 127. BROWNFIELDS GRANTS.
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) ADMINISTRATIVE
COST.—The term ‘ad-
ministrative cost’ does not include the cost of—
‘‘(A) site inventories;
‘‘(B) investigation and identification of the
extent of contamination;
‘‘(C) design and performance of a response
action; or
‘‘(D) monitoring of natural resources.
‘‘(2) BROWNFIELD FACILITY.—
‘‘(A) IN GENERAL.—The term ‘brownfield
facility’ means real property with respect to
which expansion, development, or redevelopment
is complicated by the presence or potential pres-
ence of a hazardous substance.
‘‘(B) EXCLUDED
FACILITIES.—The term
‘brownfield facility’ does not include—
‘‘(i) any portion of real property that
is the subject of an ongoing removal or
planned removal under section 104;
‘‘(ii) any portion of real property that
is listed or has been proposed for listing on
the National Priorities List;
‘‘(iii) any portion of real property with
respect to which a cleanup is proceeding
under a permit, an administrative order, or
a judicial consent decree entered into by
the United States or an authorized State
under this Act, the Solid Waste Disposal
Act (42 U.S.C. 6901 et seq.), the Federal
Water Pollution Control Act (33 U.S.C.
1251 et seq.), the Toxic Substances Con-
trol Act (15 U.S.C. 2601 et seq.), or the
Safe Drinking Water Act (42 U.S.C. 300f
et seq.);
‘‘(iv) a facility that is owned or oper-
ated by a department, agency, or instru-
mentality of the United States, except a
facility located on lands held in trust for
an Indian tribe; or
‘‘(v) a portion of a facility for which
assistance for response activity has been
obtained under subtitle I of the Solid
Waste Disposal Act (42 U.S.C. 6991 et
seq.) from the Leaking Underground Stor-
age Tank Trust Fund established under
section 9508 of the Internal Revenue Code
of 1986.
‘‘(3) ELIGIBLE ENTITY.—
‘‘(A) IN GENERAL.—The term ‘eligible en-
tity’ means—
‘‘(i) a State or a political subdivision
of a State, including—
‘‘(I) a general purpose unit of
local government; and
‘‘(II) a regional council or group
of general purpose units of local gov-
ernment;
‘‘(ii) a redevelopment agency that is
chartered or otherwise sanctioned by a
State or other unit of government; and
‘‘(iii) an Indian tribe.
‘‘(B) EXCLUDED ENTITIES.—The term ‘el-
igible entity’ does not include any entity that is
not in full compliance with the requirements of
an administrative order, judicial consent decree,
or closure plan under a permit which has been
issued or entered into by the United States or
an authorized State under this Act, the Solid
Waste Disposal Act (42 U.S.C. 6901 et seq.),
the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.), the Toxic Substances
Control Act (15 U.S.C. 2601 et seq.), or the
Safe Drinking Water Act (42 U.S.C. 300f et
seq.) with respect to the real property or por-
tion thereof which is the subject of the order,
judicial consent decree, or closure plan.
‘‘(b) 
BROWNFIELD
ASSESSMENT
GRANT
PRO-
GRAM.—
‘‘(1) 
ESTABLISHMENT
OF
PROGRAM.—The
President shall establish a program to provide
grants to eligible entities for inventory and assess-
ment of brownfield facilities.
‘‘(2) ASSISTANCE FOR SITE ASSESSMENT.—On
approval of an application made by an eligible entity,
the President may make grants to the eligible entity
to be used for developing an inventory and con-
ducting an assessment of 1 or more brownfield fa-
cilities.
‘‘(3) APPLICATIONS.—
‘‘(A) IN
GENERAL.—Any eligible entity
may submit an application to the President, in
such form as the President may require, for a
grant under this subsection for 1 or more
brownfield facilities.
‘‘(B) APPLICATION
REQUIREMENTS.—An
application for a grant under this subsection
shall include information relevant to the rank-
ing criteria established under paragraph (4) for
the facility or facilities for which the grant is
requested.
‘‘(4) RANKING CRITERIA.—The President shall
establish a system for ranking grant applications
submitted under this subsection that includes the
following criteria:
‘‘(A) The demonstrated need for Federal
assistance.
‘‘(B) The extent to which a grant will
stimulate the availability of other funds for en-
vironmental remediation and subsequent rede-
velopment of the area in which the brownfield
facilities are located.
‘‘(C) The estimated extent to which a
grant would facilitate the identification of or fa-
cilitate a reduction in health and environmental
risks.
‘‘(D) The potential to stimulate economic
development of the area, such as the following:
‘‘(i) The relative increase in the esti-
mated fair market value of the area as a
result of any necessary response action.
‘‘(ii) The potential of a grant to cre-
ate new or expand existing business and
employment opportunities on completion of
any necessary response action.
‘‘(iii) The estimated additional tax
revenues expected to be generated by eco-
nomic redevelopment in the area in which
a brownfield facility is located.
‘‘(E) The financial involvement of the
State and local government in any response ac-
tion planned for a brownfield facility and the
extent to which the response action and the
proposed redevelopment is consistent with any
applicable State or local community economic
development plan.
‘‘(F) The extent to which the site assess-
ment and subsequent development involves the
active participation and support of the local
community.
‘‘(5) MAXIMUM
GRANT
AMOUNT
PER
FACIL-
ITY.—A grant made to an eligible entity under this
subsection shall not exceed $200,000 with respect to
any brownfield facility covered by the grant.
‘‘(c) BROWNFIELD
REMEDIATION
GRANT
PRO-
GRAM.—
‘‘(1) 
ESTABLISHMENT
OF
PROGRAM.—The
President shall establish a program to provide
grants to eligible entities to be used for capitaliza-
tion of revolving loan funds for remedial actions at
brownfield facilities.
‘‘(2) ASSISTANCE
FOR
SITE
REMEDIATION.—
Upon approval of an application made by an eligible
entity, the President may make grants to the eligible
entity to be used for establishing a revolving loan
fund. Any fund established using such grants shall
be used to make loans to a State, a site owner, or
a site developer for the purpose of carrying out re-
medial actions at 1 or more brownfield facilities.
‘‘(3) APPLICATIONS.—
‘‘(A) IN
GENERAL.—Any eligible entity
may submit an application to the President, in
such form as the President may require, for a
grant under this subsection.
‘‘(B) APPLICATION
REQUIREMENTS.—An
application under this section shall include in-
formation relevant to the ranking criteria estab-
lished under paragraph (4).
‘‘(4) RANKING CRITERIA.—The President shall
establish a system for ranking grant applications
submitted under this subsection that includes the
following criteria:
‘‘(A) The adequacy of the financial con-
trols and resources of the eligible entity to ad-
minister a revolving loan fund in accordance
with this title.
‘‘(B) The ability of the eligible entity to
monitor the use of funds provided to loan re-
cipients under this title.
‘‘(C) The ability of the eligible entity to en-
sure that a remedial action funded by the grant
will be conducted under the authority of a State
cleanup program that ensures that the remedial
action is protective of human health and the en-
vironment.
‘‘(D) The ability of the eligible entity to
ensure that any cleanup funded under this Act
will comply with all laws that apply to the
cleanup.
‘‘(E) The need of the eligible entity for fi-
nancial assistance to clean up brownfield sites
that are the subject of the application, taking
into consideration the financial resources avail-
able to the eligible entity.
‘‘(F) The ability of the eligible entity to
ensure that the applicants repay the loans in a
timely manner.
‘‘(G) The plans of the eligible entity for
using the grant to stimulate economic develop-
‘‘(3) AGREEMENTS.—
‘‘(A) TERMS
AND
CONDITIONS.—Each
grant made under this section shall be subject
to an agreement that—
‘‘(i) requires the eligible entity to
comply with all applicable Federal and
State laws;
‘‘(ii) requires the eligible entity to use
the grant exclusively for the purposes spec-
ified in subsection (b)(2) or (c)(2);
‘‘(iii) in the case of an application by
a State under subsection (c)(2), requires
payment by the State of a matching share,
of at least 50 percent of the amount of the
grant, from other sources of funding;
‘‘(iv) requires that grants under this
section will not supplant State or local
funds normally provided for the purposes
specified in subsection (b)(2) or (c)(2); and
‘‘(v) contains such other terms and
conditions as the President determines to
be necessary to ensure proper administra-
tion of the grants.
‘‘(B) LIMITATION.—The President shall
not place terms or conditions on grants made
under this section other than the terms and
conditions specified in subparagraph (A).
‘‘(4) LEVERAGING.—An eligible entity that re-
ceives a grant under this section may use the funds
for part of a project at a brownfield facility for
which funding is received from other sources, includ-
ing other Federal sources, but the grant shall be
used only for the purposes described in subsection
(b)(2) or (c)(2).
‘‘(e) APPROVAL.—
‘‘(1) INITIAL GRANT.—Before the expiration of
the fourth quarter of the first fiscal year following
the date of the enactment of this section, the Presi-
dent shall make grants under this section to eligible
entities and States that submit applications, before
the expiration of the second quarter of such year,
that the President determines have the highest
rankings under the ranking criteria established
under subsection (b)(4) or (c)(4).
‘‘(2) SUBSEQUENT
GRANTS.—Beginning with
the second fiscal year following the date of enact-
ment of this section, the President shall make an an-
nual evaluation of each application received during
the prior fiscal year and make grants under this sec-
tion to eligible entities and States that submit appli-
cations during the prior year that the President de-
termines have the highest rankings under the rank-
ing criteria established under subsection (b)(4) or
(c)(4).
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
such sums as may be necessary. Such funds shall remain
available until expended.’’.
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