I
105TH CONGRESS
1ST SESSION
H. R. 2485
To amend the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.) to provide liability
relief for small parties, innocent landowners, and prospective purchasers.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 16, 1997
Mr. STUPAK (for himself, Mr. GOODLING, Mr. HEFLEY, and Mr. MCHALE)
introduced the following bill; which was referred to the Committee on
Commerce, and in addition to the Committee on Transportation and In-
frastructure, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601
et seq.) to provide liability relief for small parties, inno-
cent landowners, and prospective purchasers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Common Sense
Superfund Liability Relief Act of 1997’’.
SEC. 
2. 
SMALL 
PARTY 
LIABILITY 
RELIEF 
UNDER
SUPERFUND.
(a) LIABILITY EXEMPTION.—Section 107(a) of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9607(a)) is amended
as follows:
(1) In paragraph (4), by striking ‘‘by such per-
son,’’ and all that follows through ‘‘shall be liable
for—’’ and inserting in lieu thereof the following:
‘‘by such person—
from which there is a release, or a threatened release, that
causes the incurrence of response costs, of a hazardous
substance, shall be liable for—’’.
(2) By designating the text beginning with
‘‘The amounts recoverable’’ and ending with ‘‘this
subsection commences.’’ as paragraph (5) and align-
ing the margin of such text with paragraph (4).
(3) By adding the following new paragraph
after paragraph (5):
‘‘(6)(A) 
Notwithstanding 
paragraphs 
(1)
through (4) of this subsection, a person who does
not impede the performance of a response action or
natural resource restoration at a facility shall not be
liable to the extent liability at such facility is based
solely on paragraph (3) or (4) of this subsection,
and the person arranged for disposal, treatment, or
transport for disposal or treatment, or accepted for
transport for disposal or treatment of only municipal
solid waste or sewage sludge owned or possessed by
such person, and the person is—
‘‘(i) the owner, operator, or lessee of resi-
dential property;
‘‘(ii) a small business; or
‘‘(iii) a small non-profit organization.
‘‘(B) This paragraph shall have no effect on the
liability of any other person.’’.
(b) SMALL BUSINESS DEFINED.—Section 101 of
such Act (42 U.S.C. 9601) is amended by adding at the
end the following new paragraph:
‘‘(39) SMALL BUSINESS.—The term ‘small busi-
ness’ refers to any business entity that employs no
more than 100 individuals and is a ‘small business
concern’ as defined under the Small Business Act
(15 U.S.C. 631 et seq.).’’.
SEC. 3. INNOCENT LANDOWNER PROTECTION UNDER
SUPERFUND.
(a) ENVIRONMENTAL SITE ASSESSMENT.—Section
107 of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9607) is
further amended by adding at the end the following new
subsection:
‘‘(o) INNOCENT LANDOWNERS.—
‘‘(1) CONDUCT
OF
ENVIRONMENTAL
ASSESS-
MENT.—A person who has acquired real property
shall have made all appropriate inquiry within the
meaning of subparagraph (B) of section 101(35) if
he establishes that, within 180 days prior to the
time of acquisition, an environmental site assess-
ment of the real property was conducted which
meets the requirements of paragraph (2).
‘‘(2) DEFINITION OF ENVIRONMENTAL SITE AS-
SESSMENT.—For purposes of this subsection, the
term ‘environmental site assessment’ means an as-
sessment conducted in accordance with the stand-
ards set forth in the American Society for Testing
and Materials (ASTM) Standard E1527–94, titled
‘Standard Practice for Environmental Site Assess-
ments: Phase I Environmental Site Assessment
Process’ or with alternative standards issued by rule
by the President or promulgated or developed by
others and designated by rule by the President. Be-
fore issuing or designating alternative standards, the
President shall first conduct a study of commercial
and industrial practices concerning environmental
site assessments in the transfer of real property in
the United States. Any such standards issued or
designated by the President shall also be deemed to
constitute commercially reasonable and generally ac-
cepted standards and practices for purposes of this
paragraph. In issuing or designating any such stand-
ards, the President shall consider requirements gov-
erning 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 landowner.
‘‘(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) APPROPRIATE
INQUIRY.—A person shall
not be treated as having made all appropriate in-
quiry under paragraph (1) unless—
‘‘(A) the person has maintained a compila-
tion of the information reviewed and gathered
in the course of the environmental site assess-
ment;
‘‘(B) 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 re-
leases of hazardous substances, and prevent or
limit human or natural resource exposure to
hazardous substances previously released into
the environment; and
‘‘(C) the person provides full cooperation,
assistance, and facility access to persons au-
thorized to conduct response actions or natural
resource restoration at the facility, including
the cooperation and access necessary for the in-
stallation, integrity, operation, and maintenance
of any complete or partial response action or
natural resource restoration at the facility.’’.
(b) CROSS REFERENCE.—Section 101(35)(B) of such
Act (42 U.S.C. 9601(35)(B)) is amended by inserting
after ‘‘all appropriate inquiry’’ the following: ‘‘(as speci-
fied in section 107(o))’’.
SEC. 4. PROSPECTIVE PURCHASER PROTECTION UNDER
SUPERFUND.
(a) LIMITATIONS ON LIABILITY.—Section 107 of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9607) is further
amended by adding at the end the following new sub-
section:
‘‘(p) LIMITATIONS ON LIABILITY FOR PROSPECTIVE
PURCHASERS.—Notwithstanding paragraphs (1) through
(4) of subsection (a), to the extent the liability of a person,
with respect to a release or the threat of a release from
a facility, is based solely on subsection (a)(1), the person
shall not be liable under this Act if the person—
‘‘(1) is a bona fide prospective purchaser of the
facility; and
‘‘(2) does not impede the performance of any
response action or natural resource restoration at a
facility.’’.
(b) PROSPECTIVE
PURCHASER
AND
WINDFALL
LIEN.—Section 107 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (as
amended by subsection (a)) is further amended by adding
after subsection (p) the following new subsection:
‘‘(q) PROSPECTIVE
PURCHASER
AND
WINDFALL
LIEN.—
‘‘(1) IN GENERAL.—In any case in which there
are unrecovered response costs at a facility for which
an owner of the facility is not liable by reason of
subsection (p), and the conditions described in para-
graph (3) are met, the United States shall have a
lien on the facility, or may obtain, from the appro-
priate responsible party or parties, a lien on other
property or other assurances of payment satisfactory
to the Administrator, for the unrecovered costs.
‘‘(2) AMOUNT; DURATION.—The lien—
‘‘(A) shall be for an amount not to exceed
the increase in fair market value of the prop-
erty attributable to the response action at the
time of a subsequent sale or other disposition of
the property;
‘‘(B) shall arise at the time costs are first
incurred by the United States with respect to a
response action at the facility;
‘‘(C) shall be subject to the requirements
for notice and validity specified in subsection
(l)(3); and
‘‘(D) shall continue until the earlier of sat-
isfaction of the lien or recovery of all response
costs incurred at the facility.
‘‘(3) CONDITIONS.—The conditions referred to
in paragraph (1) are the following:
‘‘(A) RESPONSE ACTION.—A response ac-
tion for which there are unrecovered costs is
carried out at the facility.
‘‘(B) FAIR MARKET VALUE.—The response
action increases the fair market value of the fa-
cility above the fair market value of the facility
that existed on the date that is 180 days before
the response action was commenced.’’.
(c) DEFINITION OF BONA FIDE PROSPECTIVE PUR-
CHASER.—Section 101 of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601) is further amended by adding at
the end the following:
‘‘(40) BONA FIDE PROSPECTIVE PURCHASER.—
The term ‘bona fide prospective purchaser’ means a
person who acquires ownership of a facility after the
date of enactment of this paragraph, or a tenant of
such a person, who can establish each of the follow-
ing by a preponderance of the evidence:
‘‘(A) DISPOSAL PRIOR TO ACQUISITION.—
All active disposal of hazardous substances at
the facility occurred before the person acquired
the facility.
‘‘(B) INQUIRY.—
‘‘(i) IN GENERAL.—The person made
all appropriate inquiry into the previous
ownership and uses of the facility in ac-
cordance with generally accepted good
commercial and customary standards and
practices.
‘‘(ii) STANDARDS.—The ASTM stand-
ards described in section 107(o)(2) or the
alternative standards issued or designated
by the President pursuant to that section
shall satisfy the requirements of this sub-
paragraph.
‘‘(iii) RESIDENTIAL
PROPERTY.—In
the case of property in residential or other
similar use at the time of purchase by a
nongovernmental or noncommercial entity,
a site inspection and title search that re-
veal no basis for further investigation shall
satisfy the requirements of this subpara-
graph.
‘‘(C) NOTICES.—The person provided all
legally required notices with respect to the dis-
covery or release of any hazardous substances
at the facility.
‘‘(D) CARE.—The person exercised appro-
priate care with respect to hazardous sub-
stances found at the facility by taking reason-
able steps to—
‘‘(i) stop ongoing releases;
‘‘(ii) prevent threatened future re-
leases of hazardous substances; and
‘‘(iii) prevent or limit human or natu-
ral resource exposure to hazardous sub-
stances previously released into the envi-
ronment.
‘‘(E) COOPERATION, ASSISTANCE, AND AC-
CESS.—The person provides full cooperation,
assistance, and facility access to such persons
as are authorized to conduct response actions at
the facility, including the cooperation and ac-
cess necessary for the installation, integrity, op-
eration, and maintenance of any complete or
partial response action at the facility.
‘‘(F) RELATIONSHIP.—The person is not
liable, or is not affiliated with any other person
that is potentially liable, for response costs at
the facility, through any direct or indirect fa-
milial relationship, or any contractual, cor-
porate, or financial relationship other than that
created by the instruments by which title to the
facility is conveyed or financed.’’.
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