5EPA
        x
          United States
          Environmental Protection
          Agency
            Office of
            Solid Waste and
            Emergency Response
DIRECTIVE NUMBER: 9834.\3,-//A

TITLE:   Potentially Responsible Party Search
         Manual
APPROVAL DATE: 8/2J/87

EFFECTIVE DATE: B/27/87

ORIGINATING OFFICE:     OWPE/NEIC

Q FINAL

D DRAFT

 LEVEL OF DRAFT

   D A — Signed by AA or DAA
   Q 8 — Signed by Office Director
   DC — Review & Comment

REFERENCE (otter documents):
SWER      OSWER     OSWER
  DIRECTIVE   DIRECTIVE   Dl

-------
      SERA
          United States Environmental Protection Agency
                 Washington, DC 20460
OSWER Directive  Initiation Request
                    1. Directive Number
                     9834.6  ,
                                  2. Originator Information
      Name of Contact Person
         Donna Lee Gerst
                  Mail Code
                    WH-527
Office
    OWPE
      3. Title
            Potentially Responsible Party Search Manual
      4. Summary of Directive (include bnef statement of purpose)

           The document  explains  the purpose  of a potentially responsible party search,
       the  reporting requirements  of the search, and the mechanics  of the tasks that are
       available to the researcher conducting  the search.  It also  describes what is
       minimally acceptable for the purposes of SCAP and the CEAT audits.
      5. Keywords
             PRP search, basic PRP search,  specialized tasks,
      6a. Does This Directive Supersede Previous Directive(s)?
      b. Does It Supplement Previous Directive(s)?
                                            No
                                            No
                                   Yes   What directive (number, title)
                                   Yes   What directive (number, tftte)
                                        OSWER 9834.3
      7. Draft Level
          A - Signed by AA/DAA
             8 -- Signed by Office Director
      C - For Review & Comment
D - In Development
8. Document to be distributed to States by Headquarters?
v

Yes


No
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Office Directives Coordinator
oy^^WjL. /X^xXjei s~rr^
10. Name and Title of Approving Official
Date
•sfa/*?
Date
      EPA Form 1315-17 (Rev. S-87) Previous editions are obsolete.
   OSWER           OSWER               OSWER              C
VE    DIRECTIVE         DIRECTIVE        DIRECTIVE

-------
   I         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
  r/                     WASHINGTON, D.C. 20460
  /


                            ALJ6 27  ISST


                                                         OFFICE OF
                                                SOLID WASTE AND EMERGENCY RESPO^

                                               OSWER  Directive 9834.6

MEMORANDUM
SUBJECT:  Potentially  Responsible  Party Search Manual
FROM:     Gene A.  Lucero,  Director
          Office of Waste  Programs  Enforcement

TO:       Waste Management Division Directors
          Regions  I-X

     Attached is the final Potentially  Responsible  Party Search
Manual.  This guidance was developed by the  Office  of Waste
Programs Enforcement in cooperation with NEIC and the Regions,
with input from contractors involved in the  PRP search process.
It reflects changes in the process  as a result  of the passage of
SARA, and details  the methodology used  in the search process.

     Workshops have been scheduled  for  most  Regions to educate
staff, contractors and the states on the new guidance and procedures,

     If you have any questions  relating to this guidance, or the
workshops, contact Donna Gerst  (FTS-475-7027) of the Office of
Waste Programs Enforcement.

Attachment

cc:  Regional Counsels, Regions  I-X
     Henry Longest, OERR
     Steve Leifer, OECM

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              UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                             WASHINGTON, D.C. 20460
                                 SEP  17  1987
MEMORANDUM

SUBJECT:  New Directive for the OSWER Directives System
                                                                    OFFICE OF
                                                         SOLID WASTE AND EMERGENCY RESPON:
FROM:     Sharon Foote  T-f^i /-A
          Program Analyst

TO:       Regional Directives Coordinators

     The purpose of this memorandum is to transmit One (1) OSWER

Directives System document.

     The new entry included in this report is:

     9834.6       Potentially Responsible Party Search Manual

     If there are any questions or suggestions, please call me at

382-4510.

Attachment

cc:  Mary Escaville

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                                                   OSWER Directive 9834.6
POTENTIALLY RESPONSIBLE PARTY SEARCH MANUAL

                   FINAL REPORT



                     Prepared for

     U.S. ENVIRONMENTAL PROTECTION AGENCY
          Office of Waste Programs Enforcement
                Washington, D.C.  20460
        Work Assignment No.
        EPA Region
        Site No.
        Date Prepared
        Contract No.
        PRC No.
        Prepared By
        Telephone No.
        EPA Primary Contact
        Telephone No.
342
HQ
Not Applicable
August, 1987
68-01-7037
15-3420-00
PRC Environmental
Management, Inc.
(Laurie Redeker)
312/938-0300
Donna Gerst
202/382-4819

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                                   PREFACE

Please be advised that this manual was drafted in May 1987.  This manual
constitutes guidance only and should  not be construed as creating substantive rights
or affecting the  rights or liabilities of any party.
                             ACKNOWLEDGEMENT

This manual was developed by the Office of Waste Programs Enforcement and the
National Enforcement Investigation Center. Contributions were made by the
following firms:

          PRC Environmental Management, Inc.
          TechLaw, Inc.
          Versar, Inc.
          Alliance Technologies Corporation
          Jacobs Engineering Group, Inc.

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                    PRP SEARCH MANUAL UPDATE FORM


If you would like to be included on the mailing update list, please fill out the

information below and return it to:
               PRP Search Manual Update
               Office of Waste Programs Enforcement
               EPA Headquarters WH-527
               401 M Street, S.W.
               Washington, D.C. 20460
               Attention: Donna Gerst
Please include me on the PRP Search Manual Update mailing list.
Name:

Company/Off ice:

Mail Code:

Address:
                                       11

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                              TABLE OF CONTENTS
Section
Page
PREFACE
ACKNOWLEDGEMENT
PRP SEARCH MANUAL UPDATE FORM
   i
   i
   ii
1.0      INTRODUCTION	    1

2.0      BACKGROUND	    1

        2.1    DEFINITION OF PRP	    1
        2.2    WHY A PRP SEARCH IS NEEDED	    2
        2.3    WHEN TO DO A PRP SEARCH	    3
        2.4    COMPLETION OF A PRP SEARCH	    5

3.0      METHODOLOGY	    6

        3.1    TASKS GENERALLY PERFORMED IN ALL PRP SEARCHES . ...   11

              3. .1     Agency Record Collection and File Review	   11
              3. .2     CERCLA 104(e) Letters/RCRA 3007 Letters	   17
              3. .3     Financial Status	   20
              3. .4     History of Operations at the Site	   24
              3. .5     Interviews with Government Officials	28
              3. .6     PRP Name and Address Updates  	   32
              3. .7     PRP Status/PRP History	   34
              3. .8     Records Compilation	   38
              3. .9     Report Preparation	   41
              3. .10    Title Search	45

        3.2    TASKS PERFORMED TO FURTHER CHARACTERIZE
              SITE-SPECIFIC PRP ASSOCIATION	   51

              OBTAINING SPECIALIZED INFORMATION

              3.2.1     Aerial  Photographs	   53
              3.2.2     CERCLA Subpoena Authority	   56
              3.2.3     Field Survey	   57
              3.2.4     PRP File Review	   60
              3.2.5     Private Citizen/PRP Interviews	63
              3.2.6     Private Investigations	   68
              3.2.7     Site Enforcement Tracking Systems	   71
              3.2.8     Site Sampling	   72

              PERFORMING WASTE STREAM COMPARISONS

              3.2.9     Industrial Survey	   75
              3.2.10    Process Chemistry Analysis	   77
              3.2.11    Waste Stream Inventory	   79

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Section
                        TABLE OF CONTENTS (Continued)
Page
              CREATING DATABASES

              3.2.12    Correspondence Tracking Databases
              3.2.13    Inventory Databases	
              3.2.14    Transactional Databases	
  81
  83
  86
              PERFORMING OTHER TASKS
              3.2.15    Compliance History .
              3.2.16    Financial Assessment
              3.2.17    Generator Ranking .
              3.2.18    Property Appraisal .
  91
  93
  96
  98
Appendices
A       Glossary and Acronyms

B       Activities Checklist

C       EPA/NEIC Information Services

D       Key Information Source Index

E       Information Collection Forms

F       Comprehensive Environmental Response, Compensation,
        and Liability Act (CERCLA)

G       Guidance and Policy Memoranda

H       List of Contacts

I       Sample Reports
                                LIST OF FIGURES
Figure

  1     Superfund Site Remediation Process
 Pag?

.  . 4

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                             1.0    INTRODUCTION

     The purpose of this manual is to provide guidance to EPA personnel and
contractors in conducting potentially responsible party (PRP) searches. The manual
was written to address the needs of three groups:

     (1)   EPA and state personnel and contractors assigned to conduct PRP
          searches;
     (2)   EPA and state project managers who are responsible for directing and
          reviewing contractor efforts; and
     (3)   EPA and state enforcement personnel using the manual as a reference in
          order to fully incorporate  a PRP investigation into an enforcement
          strategy.

     The manual is composed of two parts: background and methodology.  The
background section defines a PRP and discusses the role of PRP searches under
CERCLA (42 USC 9601), while  the methodology section provides detailed descriptions
of different tasks performed in PRP searches. The tasks are arranged alphabetically
within each subsection, not in the order they  are generally performed during a
search.  The general order is discussed under  "Methodology," on page 7.  The
appendices include sample PRP search reports as well as information sources,
relevant policy and guidance documents, an activities checklist, and a glossary for
easy reference. The sample reports can be used as guides  for standard format, and
they are examples of the type of information  that should be included in PRP
reports. Terms included in the  glossary are presented in boldface type throughout
this manual.  The glossary and list of acronyms are in Appendix A.

                              2.0     BACKGROUND

2.1        DEFINITION OF PRP

     EPA generally regards owners, operators, generators, and transporters as PRPs.
More specifically, Section 107(a) of CERCLA  indicates that a PRP may be:

          (1)   the owner and  operator of a vessel or a facility,
          (2)   any person who at the time of disposal of any hazardous substance
               owned or operated any facility at which such hazardous substances
               were disposed of,

                                       1

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          (3)   any person who by contract, agreement, or otherwise arranged for
               disposal or treatment, or arranged  with a transporter for transport
               for disposal or treatment, of hazardous substances owned or
               possessed by such person, by any other party or entity, at any
               facility or incineration vessel owned or operated by another party or
               entity and containing such  hazardous substances, and

          (4)   any person who accepts or  accepted any hazardous substances for
               transport to disposal or  treatment facilities, incineration vessels or
               sites selected by such person, from which there is  a release, or a
               threatened release which causes the incurrence of  response costs, of
               a hazardous substance  . .


     A "person" is defined in CERCLA  Section 101(21) as  "an individual,  firm,

corporation, association, partnership, consortium, joint venture, commercial entity,

United States Government, State, municipality, commission, political subdivision of a

State, or  any interstate body."


     An  "owner or operator" as defined by CERCLA Section 101(20)(A) is:

          (i)        in the case of a vessel, any person owning., operating, or
                    chartering by demise, such vessel,

          (ii)       in the case of an onshore facility or an offshore facility, any
                    person owning or operating such facility, and

          (iii)       in the case of any facility, title or control of which was
                    conveyed due to bankruptcy, foreclosure, tax delinquency,
                    abandonment, or similar means to a unit of State or local
                    government, any person who  owned, or otherwise controlled
                    activities at such facility immediately beforehand.

     For further elaboration, refer to CERCLA Section 101(20)(B-C) and Section

107(a) located in Appendix F.


2.2       WHY A PRP SEARCH IS NEEDED
     The identification of PRPs is an integral component in the resolution of a

hazardous substance release.  From the notification of a release through the

remedial action, identification of  and communication with the PRPs are essential in

determining the strategy for  a cleanup. Early identification supports EPA policy to

secure cleanup by PRPs in lieu of Superfund use, where such cleanup can be

accomplished  in a timely and effective manner (see Timely Initiation of Responsible

Party Searches, Issuance of Notice Letters, and Release of Information, Appendix G).
€

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In instances where Superfund is used to finance a cleanup, the PRPs must be
identified for cost recovery actions.

2.3       WHEN TO DO A PRP SEARCH

     Current EPA policy and the Superfund Amendments and Reauthorization Act
(SARA) encourage beginning a  PRP search early in the Superfund cleanup process
(Figure 1). The initiation of a  PRP search should be concurrent with the initiation
of the National Priorities List (NPL) listing process (during the expanded site
investigation).  In most cases, as PRPs are identified, EPA expects to issue general
notice letters. In addition, in the majority of cases, special notice procedures will
be initiated for the remedial investigation/feasibility study (RI/FS) and for remedial
design/remedial action (RD/RA), and information exchange as set forth in the
"Interim Guidance on Notice Letters, Negotiations, and Information Exchange" (see
Appendix G).  Figure 1  shows  why the PRP search is an essential, early step in
the enforcement process  and the importance of early PRP identification.  Completion
should take place at the  time of NPL proposed listing and well before any projected
obligation for an RI/FS.

     At the time of  site  discovery, a preliminary search is conducted to identify
obvious PRPs.  This  step is essential, especially at removal sites where immediate
action is indicated, to determine if PRPs are available to finance the cleanup.  A
PRP search at this stage  is performed within a limited timeframe. Where response
actions must precede completion of the PRP search, the search should be performed
to support cost recovery  or future response actions.

     The extent of a PRP search depends on several factors including NPL or non-
NPL status, site complexity (single landowner, landfill, abandoned drums, etc.), and
the amount of funds expended  at the site.  A baseline PRP search is initiated at the
time a site is submitted to EPA's Office of Emergency and Remedial Response for
inclusion on the NPL.  This baseline search includes the first 10 tasks described in
Section 3.1 of this manual, but  may also include more specialized tasks as deemed
necessary by the remedial project manager and as dictated  by the complexity of the
site. As a site cleanup progresses, further tasks may be initiated to aid  in
identifying all PRPs at a site, as well as their  financial status and other pertinent
data.  A site is submitted for inclusion on the  NPL  based on its hazard  ranking

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                                FIGURE 1
                SUPERFUND SITE REMEDIATION PROCESS
Preliminary
PRP Search
                                      General
                                    Notice Letters
            Preliminary
            PRP Search
                                                              Baseline
                                                             PRP Search
                                    RI/FS Special
                                    Notice Letters
                                       RI/FS
                                     Negotiation
                                     PRP RI / FS
                                   RD/RA Special
                                    Notice Letters
                                      Record of
                                      Decision
                                       RD/RA
                                      Negotiation
J
                                      Remedial
                                     Design (RD)
                                      Remedial
                                     Action (RA)
                                    Operations and
                                     Maintenance

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system (HRS) score, which is determined during the preliminary assessment/site
investigation (PA/SI) stage of the Superfund process (see Figure 1).  An HRS of
28.5 or higher justifies NPL listing.

     Throughout the PRP search, it is important that the investigator maintain
ongoing communications with the EPA primary contact, regional counsel, and the
regional civil investigator. Beginning in  1987, one civil investigator will be located
in EPA headquarters and will be responsible for effective implementation of an
overall national investigation strategy for conducting PRP searches.  In addition,
one civil investigator will be located in each region to ensure regional consistency
and quality among PRP searches, develop a regional plan for conducting  PRP
searches, and aid the headquarters investigator in implementing the national
strategy.

     In summary, the PRP search, as a key component of the cleanup, should be
initiated  as early as possible in  the site strategy development. The extent of the
search depends  on the stage  of development, NPL or non-NPL status, and the
complexity of the site.

2.4       COMPLETION OF A  PRP SEARCH

     The primary efforts of a PRP search are directed at identifying all  PRPs at a
site.  This investigation  may require a considerable expenditure of resources, and,
while in most cases  it should be  substantially completed several months before  the
RI/FS starts, it may extend over the entire remedial process.  For EPA reporting
purposes, a definition of a completed PRP search has been developed based on the
Superfund  Comprehensive Accomplishments Plan (SCAP) definition.  The information
required  to meet the SCAP target of a completed PRP search may be developed
from the conduct of the ten basic tasks.  In most multi-party cases, specialized
tasks will also be utilized to provide adequate information for the baseline report.
The PRP search effort should include, or yield, the following information at a
minimum:

          o    A review and compilation of agency and state records
          o    A title search
          o    Interviews with  government officials

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          o    A history of operations at the site
          o    Identification of owner/operators
          o    Identification of generators and transporters
          o    Any quantitative waste information developed for each identified
               PRP and a  preliminary volumetric ranking
          o    Financial status of identified parties
          o    PRP status and history
          o    PRP name and  address update
          o    Issuance of information request letters
          o    Comprehensive  report documenting findings

     These components are essential  to support  an enforcement strategy at
Superfund sites.

                             3.0    METHODOLOGY

     This chapter describes 28  tasks  that may be completed during a PRP search.
Rarely, if ever, would  all 28 tasks be used to obtain the information  required for a
PRP search.  EPA anticipates that the researcher will  select a combination of those
tasks that effectively produce the necessary information.  A clear understanding of
the type and detail  of  information required for each search will allow the
researcher to select  the appropriate tasks.  If a contractor  is conducting the
research, the contractor and EPA personnel should discuss the progress of the
selected tasks during the search so that appropriate follow-up tasks can be
completed.

     Before any tasks  are started during a specific PRP search, the researcher must
clearly understand the objective of the search.  This understanding will help the
researcher obtain the necessary information in an  orderly manner. If a contractor
is conducting the research, early and continuous communication with EPA personnel
involved with the site  is required.  The  researcher must be aware of  (1) the  type of
case, such as a landfill with many PRPs, or a manufacturing facility with a small
number of PRPs; (2) the types of PRPs possibly involved with the site (owners,
operators, generators, transporters); (3) EPA's specific needs to support case
development, such as identifying only corporate PRPs; (4) information already
available  so as not to repeat previous efforts; and  (5)  EPA's anticipated action.

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     Ten of the 28 tasks presented in this manual are those generally performed in
all PRP searches.  These tasks are presented in alphabetical order in Section 3.1.
Of these 10 basic tasks, 4 are used to collect information: government agency
record collection and file reviews, title  searches, interviews with public officials,
and CERCLA 104(e)/RCRA 3007 letters.  In most cases, these four tasks can be
conducted simultaneously.

     The remaining six tasks in Section 3.1 are records compilation,  history of
operations at the site, PRP status/PRP history, PRP name and address update,
financial status, and report preparation. Records compilation is completed after the
government files are located.  This task organizes the files into a useful and easily
accessible source of information.  After obtaining information about the site,  the
researcher develops a site history and a list of PRPs.  Once a list of  PRPs is
formulated, additional information is obtained on each  PRP.  This information
includes current name, address, and financial  status.  After PRPs are identified, EPA
can request site-specific information and documents from the PRPs using CERCLA
104(e)  or RCRA 3007 letters.  Once the  information is collected, a report presenting
the information is completed.

     The other 18 tasks, presented in Section 3.2, are specialized tasks that may  be
useful  in some searches, but not in others.  These tasks are used to further
characterize the relationship between PRPs and the site. This section of the
manual can serve as a checklist of tasks the researcher can choose from as needed,
depending on  the situation. If the researcher  knows at  the beginning of the search
that some of these tasks may be  useful in identifying PRPs, those tasks may be
completed concurrently with the  10 tasks listed in Section 3.1. In other situations,
it may be useful to complete the  initial  10 tasks, review  the findings, and determine
whether additional research is necessary.  It should be noted that of the 18
specialized tasks, the PRP file review and private  citizen/PRP interview tasks have
traditionally been conducted most frequently.

     The 18 specialized tasks are categorized into four  subsections:  (1) obtaining
specialized information, (2) performing waste  stream comparisons, (3) creating
databases, and (4) performing  other  tasks.

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     The subsection on obtaining specialized information (Sections 3.2.1 to 3.2.8)
includes eight tasks that may provide more information about a site and its PRPs.
These eight tasks are listed alphabetically within the subsection.

     The subsection on performing waste stream comparisons (Sections 3.2.9 to
3.2.11) includes three tasks.  Two of the tasks, industrial survey and waste stream
inventory,  usually must be completed before the third task, process chemistry
analysis, can be completed.

     Three tasks are  listed in the subsection on creating databases (Sections 3.2.12
to 3.2.14).  These tasks allow large amounts of data, such as types and quantities of
waste, or key document information, to be managed more efficiently.  These tasks
are also  listed alphabetically.

     Four  tasks not directly related to PRP identification but often included in PRP
searches are listed alphabetically in the subsection  on performing other tasks
(Sections 3.2.15 to 3.2.18). These tasks are compliance history, financial assessment,
generator ranking, and property appraisal. Generator ranking, including type and
amount of  waste (Section 3.2.17) is  particularly useful in satisfying the special
notice provisions of CERCLA Section 122(e)(l).

     Each  task description listed in this chapter  is divided into three  parts:
objective, procedures, and problems/resolutions.  The objective states what the task
should accomplish, while the procedures explain  how a task is completed.  For some
tasks, the procedures  are divided into two parts:  initial information needs and
process.  Initial information needs lists background information that is required to
begin the task. Process presents the steps to be taken to complete the  task.
Finally,  problems/resolutions presents common problems and solutions to those
problems.  The information is presented  in  a concise, easy-to-read format  that the
researcher  may use as a checklist to indicate which steps  and tasks have been
completed.

     Nine  appendices have been included to assist  the PRP researcher. These
appendices are listed below.

     Appendix A, Glossary and Acronyms — defines many of the terms used in the
     manual.

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Appendix B, Activities Checklist ~ presents each task listed in this chapter
along with a level-of-effort estimate and selection criteria. This checklist
serves as a menu of the possible activities that can be selected during a
search.

Appendix C, EPA/NEIC Information Services —  explains the relevant
information NEIC can provide to EPA Superfund personnel.

Appendix D, Key Information Source Index -- lists document sources and
document types that are useful in obtaining information.  Sources are provided
for each task discussed in this chapter.  Additional examples of documents are
provided in Potentially Responsible Party Search Workshop Outline/Exhibits.
National Enforcement Investigations Center, May 6,  1986.

Appendix E, Information Collection Forms -- provides sample forms  used to
conduct interviews and industrial surveys. These forms must be altered to fit
site-specific needs.

Appendix F, Comprehensive Environmental Response, Compensation, and
Liability Act - is  a copy of CERCLA as amended by the Superfund
Amendments and Reauthorization Act (SARA) of 1986.

Appendix G, Guidance and Policy Memoranda -- contains copies of several
memoranda issued by  EPA, many of which are being revised under SARA.
These memoranda  provide guidance for various  PRP search issues.  New and
revised  guidances relating to PRP searches will  be included as they become
available.

Appendix H, List of Contacts -- provides names, addresses, and telephone
numbers of federal and state agencies that may  be contacted to obtain site-
specific information.

Appendix I, Sample Reports -- provides several sample work products.  None of
the reports are presented  in their entirety; only  highlights are presented.

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             3.1.1  AGENCY RECORD COLLECTION AND FILE REVIEW
OBJECTIVE
The objective of this task is to locate and obtain copies of all governmental records
pertinent to the site and  relevant to  the PRP search. Relevant records could include
correspondence, hazardous waste manifests, technical data and reports, permits,
complaints, investigations, site owner records, fire department chemical reports, litigation
files, and bankruptcy files.  These initial records provide important information the
researcher uses to become familiar with the  site, identify PRPs, and determine additional
possible contacts. This task can  be completed while conducting the title search (Section
3.1.10)  and  interviews (Section 3.1.5). Examples 1 and 2 in Appendix I, Sample Reports,
discuss file reviews.  Procedures for  reviewing PRP files, not government files, are
discussed in Section 3.2.4.
PROCEDURES
     Initial Information
     Needs

     o     Location of
           Records

     o     Information
           Needs

     o     Authorization to
           Contact Other
           Agencies
The first step in collecting and reviewing site
records is to locate the appropriate records.  If a
contractor is conducting the search, discuss
information needs with the EPA primary contact.
Identify any areas for which the agency would like
additional or unique information.  In addition, obtain
authorization to contact other agencies you might
identify. Discuss sources of site records with the
EPA primary contact  focusing on:

     o    Site background.

     o    EPA records held by specific divisions or
          program offices:

               Air

               Water

               RCRA

               CERCLA

               Hazardous Site Control Division
               (remedial program)
               Emergency Response Division (removal
               program)
               CERCLA Enforcement Division

               Regional Counsel

               Other program offices
                                         11

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Process (Record
Collection)

o    Contact Agency
     with Documents

o    Identify
     Document Type
     and Quantity

o    Copy Documents

o    Obtain Leads on
     Other Document
     Sources
     o     State and local agencies that have records.
          See Appendix D for examples of
          information sources, such as local
          attorney's office and the local department
          of public works.  See Appendix  H for a
          list of state agencies.

     o     State and local government  officials and
          private individuals to contact for
          interviews and record collection, such as
          previous site managers and  compliance and
          permit personnel.

     o     Type of information required. Depending
          on the type of information  required by
          EPA,  both administrative and technical
          documents may need to be located and
          reviewed.

Using the information described above, compile a
preliminary list of agencies,  divisions, officials, and
private individuals to contact for  site  records.
Discussions should be held with the EPA primary
contact to determine who will  initially contact the
other agencies and how  to approach newly  identified
sources.

With the above needs in mind, contact each known
agency by phone and:

     o    Identify yourself  and your  organization,
          and clearly explain  your role in  the EPA
          investigation.  Give the name and
          telephone  number of the EPA primary
          contact.

     o    Explain the scope of the document request
          relevant to:

               Site operational history

               Identification,  of owners, operators,
               generators, and transporters

               Other information needs consistent
               with EPA strategy

     o    Identify all records, correspondence, or
          other files and the approximate quantity
          (such as number of  file drawers).

     o    Ask each agency to  identify its  divisions,
          such as:
                                             Air
                                   12

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         Water

         RCRA

         CERCLA

         Engineering

    Ask each agency whether it can identify
    other agencies, including regional and
    district offices, that might have additional
    records on the site.  See Appendix D for
    examples of additional information  sources.
    These might include:

         Health department

         Environmental department/office

         Transportation department

         Police department

         Fire department

         Public works department

         State Attorney General

         Chamber of Commerce

    As appropriate, contact the EPA Regional
    Counsel to determine other kinds of
    information important to identifying PRPs
    and linking PRPs to  the site.  If a
    contractor is conducting the search,
    determine with the EPA primary contact if
    the contractor should contact the Regional
    Counsel directly or go  through the EPA
    primary contact.

    Request a copy of a manufacturer's
    directory for the local  area from a local
    source.  This may aid in identifying PRPs
    (also see Section 3.1.7).

    Inquire as to whether records may be
    contaminated (see Problems/Resolutions).
    Arrange to obtain a copy of the records.
    If the agency is to copy the records,
    identify:

         Number of pages  to be copied

         Cost of the photocopying
13

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              Length of time needed to copy the
              records

    o    If the contractor  will do the copying,
         identify:

              Numb.er  of pages to be copied

              Time required to review and copy the
              records

              Agency policy on the use of in-house
              copiers

              Agency policy on employing
              temporary help to assist  with copying

              Agency policy on removing documents
              from the office for commercial
              copying

    o    If the files are to be physically removed
         from an agency's files, EPA or its
         contractor should provide a receipt to  that
         agency  describing the records (type and
         approximate volume).

    o    Review the documents to determine which
         to copy. Examples of the types of records
         that are useful for PRP  searches are given
         in Appendix D.   Primarily, the researcher
         is looking  for any document that:

              Identifies PRPs

              Is evidence  that a PRP was involved
              with  a site

              Lists types and quantities of waste
              disposed of  at the site

              Explains the operations or methods of
              disposal  at the site

              Identifies other persons or agencies
              that may have knowledge of site
              activities

After determining which documents are  relevant
based on the criteria described above, copy those
documents.  EPA and its contractors should use
standard chain-of-custody procedures when obtaining
possession of another agency's files. This will
prevent tampering or allegations of tampering  with
the documents.
      14

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    Process (File Review)

    o     Arrange
          Documents

    o     Number
          Documents

    o     Review and
          Record
          Information
PROBLEMS/RESOLUTIONS
After the documents have been obtained, they must
be organized and  reviewed.  The process is
straightforward but involves a number of steps.

     o    Arrange the documents either by
          chronological order, source, document type
          (such as permits or analytical results), or
          by other appropriate methods.

     o    Number the documents for  reference
          purposes.

     o    Review and record the contents of each
          document based on the criteria described
          on the  previous page as it pertains to:

               Relevancy

               Site history

               PRPs identified

               Waste types and amounts

               Contacts identified

               Contradictions with other documents
               reviewed
          The volume of records identified is very
          large.

               If a contractor is conducting the
               search, the contractor travels to the
               agency, identifies relevant records,
               and makes copies of the relevant
               records.

          The volume of relevant records identified
          is too large to be readily copied.

               Copy records at the agency with the
               help of a rental copier or temporary
               help.

               Send records to a local company for
               copying, with contractor staff
               supervision.

               Microfilm documents and produce
               hard copies from the microfilm.
                                        15

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    The records are determined to be business
    confidential.

         The contractor consults with EPA to
         determine whether it is necessary to
         review these records.

         The contractor obtains confidential
         business information (CBI) clearance
         from EPA and accesses the  records.

    Records are encountered that may be
    contaminated with toxic or hazardous
    materials.

         The contractor consults EPA to
         determine the probable degree of
         contamination, whether the documents
         should be tested, and possible
         methods to obtain clean copies.

         The contractor develops a safety plan
         approved by EPA before initiating
         work with contaminated  records.

    The contractor is refused access  to
    records or other sources of information.

         Provide the party refusing  access
         with the name and telephone number
         of the EPA primary contact, or
         contact  EPA to obtain a letter of
         introduction or to make the initial
         contact.
i
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               3.1.2   CERCLA 104(e) LETTERS/RCRA 3007 LETTERS
OBJECTIVE

The objective of this task is to formally request information from persons about
hazardous waste management practices at the site.  Under Section 104(e)(2) of CERCLA
as amended by  SARA, "Any officer, employee, or representative [of the President] . . .
may require any person who has or may have information relevant to any of the
following to furnish, upon reasonable notice, information or documents relating to such
matter:

     "(A) The identification,  nature, and quantity of materials which have  been  or are
          generated, treated, stored, or disposed of at vessel or facility or transported
          to a vessel or facility;

     "(B)  The nature or extent of a release or threatened release of a  hazardous
          substance or pollutant or contaminant at or from a vessel or facility;

     "(C)  Information relating to the ability of a person to pay  for or to perform a
          cleanup."

RCRA Section 3007(a) provides that "For purposes of developing or assisting in the
development of any regulation or enforcing the provisions of this title, any  person who
generates, stores, treats, transports, disposes of, or otherwise handles or has handled
hazardous wastes shall, upon request . . . furnish information relating  to such wastes and
permit such person at all reasonable times to have access to, and to copy all  records
relating to such wastes."

Information commonly requested includes that concerning operations, chemical  usage,
chemical storage, waste generation,  waste disposal, and so on.  Often documentation
provided by the PRP may include hazardous waste manifests, site maps, purchase  orders,
weight tickets, technical  data,  technical reports, and permits.  This documentation is
screened for relevant, site-related information.  It may also identify other parties,
including PRPs, who may be contacted for  additional  information.
PROCEDURE
     Initial Information
     Needs

     o    Background
          Information
     Process
          Identify Names
          and Addresses

          Determine
          Questions

          Prepare Letters
Obtain basic site information, such as years of
operation and  waste types, to formulate questions for
the CERCLA  104(e)/RCRA 3007 letters.

     o    Identify parties who  may have information
          about the site from the following
          sources:

               PRPs

               Customer lists

               Industrial surveys

               Other
                                        17

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                                        o     Obtain current names and addresses. See
                                             Section 3.1.6 for procedures used to update
                                             names and addresses.

                                        o     Define the information needed from the
                                             identified parties.

                                        o     Contractors should coordinate with the
                                             EPA primary contact and Regional Counsel
                                             to formulate specific questions.

                                        o     Prepare the 104(e)/3007 letters.

                                        o     Assist EPA in preparing the mailing list.

                                        o     Send letters by certified mail -- return
                                             receipt requested.

                                        o     Immediately send the first round of letters
                                             to owners and operators.  Then send
                                             letters to all identified generators and
                                             transporters.

                                        o     Review and summarize responses to gain
                                             additional site-related information.
                                             Quantifying the information may require
                                             computer assistance (see Sections  3.2.12
                                             through 3.2.14, Creating Databases).
PROBLEMS/RESOLUTIONS
Parties do not respond to letters.

     Obtain updated names and addresses
     and resubmit the letter (this is also
     the procedure for returned letters).

     Ensure that EPA has a receipt
     verifying that the letter was
     received.

     After verifying that the letter was
     received, EPA should issue a warning
     letter.

     EPA can issue an administrative order
     requiring compliance and can take
     civil action for appropriate relief.

     EPA may use CERCLA subpoena
     authority (see Section 3.2.2).
                                         18

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    Upon review of the responses, additional
    questions arise.

         Send a second 104(e)/3007  letter to
         the PRPs.  If a contractor  is sending
         the letters, obtain EPA approval
         before preparing additional letters
         (EPA signs and  issues these letters,
         not the contractor).

    Responses are voluminous.

         The contractor can assist EPA by
         developing computerized databases
         (see Section 3.2.12).  Examples of
         software used for this purpose are
         dBASE III and  LOTUS 1-2-3.  The
         database can be used to characterize
         the status of the response by
         indicating information such as who
         received letters, who responded, and
         who provided complete responses.
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                             3.1.3   FINANCIAL STATUS
OBJECTIVE

The objective of this task is to obtain some indication of a company's or individual's
ability to pay for remedial action.  The completeness of  the financial information depends
on the amount of public  information available.  Examples 1, 5, and 6 in Appendix I,
Sample Reports, present financial status findings obtained during PRP searches.
PROCEDURE
     Initial Information
     Needs

     o    Names of PRPs
          to Investigate

     o    Type and Detail
          of Information
          Needed

     o    Background
          Information
Before beginning any research on PRP financial
status, the researcher should determine the agency's
information needs and requirements, focusing on:

     o    Which identified PRPs to investigate
          regarding  their financial status and their
          addresses if available.

     o    The type and detail of financial
          information required.

     o    Any background information already
          available on the PRP. For a company, this
          could  include the date and state of
          incorporation; for an individual, this could
          include their date of birth and social
          security number.
     Process
          Obtain Address
          Information for
          Identified PRPs

          Request an NEIC
          Search

          As Necessary,
          Conduct
          Financial
          Research
          Directly
After determining the nature and extent of the
research required, the researcher should begin
gathering financial information. The researcher
should complete the steps listed below.

     o    Perform initial research on corporate
          status, which includes obtaining a
          headquarters or local address for the
          company.

     o    If research is being conducted by a
          contractor, provide EPA with a company
          name and  address for each PRP and
          request that an NEIC search be initiated,
          with the results forwarded to the
          appropriate regional contact (for publicly
          held companies only). The regional
          contact can then forward the information
          to the contractor. NEIC has access to the
          following  sources:
                                        20

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         The Superfund Financial Assessment
         System (SFFAS) (usually for publicly
         held companies); NEIC will prepare an
         SFFAS report for the parent
         company, if any.

         Dun & Bradstreet (privately and
         publicly held companies); Dun &
         Bradstreet, unlike SFFAS, can be
         accessed by the contractor as well as
         NEIC to obtain:

              Credit information
              Information on sales, current
                   assets, and current
                   liabilities
              Company history
              Names of subsidiaries
              Addresses of company plants and
                   headquarters
              Names of company
                   officers/directors
              Holdings  and  affiliations of
                   company officers/directors

     Review the NEIC results and incorporate
     relevant information into the report.

     If parent companies or subsidiaries are
     identified, determine if  corporate status
     research is required on these companies.

     Begin  the research effort if NEIC  is
     unsuccessful in providing corporate
     information or if the researcher is to
     determine the financial status directly.
     This effort may involve:

         Performing full corporate status
         research (see Section 3.1.7)

         Identifying all company locations
         within the U.S.

         Interviewing knowledgeable
         individuals (see Section 3.2.5)

         Checking local tax  assessors' offices
         for:

              Business holdings  (past and
                   present)
              Real and  personal property
                   holdings (past and  present)
              Assessed value of  holdings
              Taxes paid on holdings
21

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                                                        Listings of tax returns filed in
                                                            other localities

                                                 Checking local sources of information
                                                 such as:

                                                      Secretary of State
                                                      Local courts
                                                      Uniform Commercial Code
                                                            offices
                                                      Registry of Motor Vehicles
                                                      Police department
                                                      Better Business Bureau

                                                 Referring to financial publications
                                                 such as:

                                                        Dun & Bradstreet
                                                        Moody's Industrial Manual
                                                        Standard and Poor's
                                                            Corporation Descriptions

                                                 Identifying,  from the title documents,
                                                 any mortgages and liens against each
                                                 title-holding company or individual

                                                 For individuals, checking bankruptcy,
                                                 court divorce proceedings, and wills
PROBLEMS/RESOLUTIONS
The assessed value of property obtained
from the local tax assessor may not reflect
full market value. Also, the assessed
value may be too high if the appraisal was
completed before contamination  occurred
or was discovered.

     Ask for the basis on which the
     assessed value was computed  and the
     date of the last assessment. The
     assessed value reported to the
     researcher may be old (for  example,
     property was last assessed in  1978
     and never reassessed) or  not the full
     market value (some jurisdictions do
     not levy  property taxes on  100
     percent of the property value). The
     researcher should note assessments
     that are not 100 percent  of market
     value.

Business, personal, and real property may
not be owned  free and clear.
                                        22

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         If mortgages, loans, and Hens cannot
         be identified, indicate in the report
         that the assets may be encumbered
         by debt.  Be sure to identify the
         sources of information  that are
         available.

    Publicly available financial information is
    almost non-existent for privately held
    corporations, sole proprietorships, or
    limited partnerships.

         Contractors should consult EPA for
         direction on how much effort to
         expend on small corpor ;tions or
         privately held companies.

         Recommend the use of legal devices
         (warrants, subpoenas), if possible, to
         obtain private financial documents.

    Only a small amount of financial informa-
    tion can be uncovered by the researcher.
    (This occurs more often with private
    companies or individuals than with publicly
    held companies.)

         Dun & Bradstreet's Report is a
         potential source of this information.

         Local information sources may exist
         that the researcher is not aware of.
         Consider hiring a local private
         investigator who may be familiar with
         these sources.
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                  3.1.4   HISTORY OF OPERATIONS AT THE SITE
OBJECTIVE

The objective of this task is to obtain information concerning activities at the site that
may  have resulted in hazardous and/or solid waste spills or disposal. The history of
operations generally begins immediately preceding the first industrial use of the site and
continues to the present.  It includes information concerning waste generation and
transportation to the site, waste disposal methods practiced at the site, and a history of
environmental enforcement actions at the site. Examples  1  and  2 in Appendix I, Sample
Reports,  include histories of operations.
                                                                                      i
PROCEDURES
     Initial Information
     Needs

     o    Type of
          Information
          Required

     o    Level of Detail
          Needed

     o    Names of
          Interviewees
                              Before conducting any research, the researcher
                              should determine the type of information and
                              level of detail required.  If a contractor is
                              performing the work, the contractor and EPA
                              should discuss and agree upon  this level of
                              effort.  Specifically, the researcher should
                              determine whether EPA  requires:

                                   Technical information

                                   Only PRP-related information

                                   A complete history including information
                                   not  related to PRPs, such as  security
                                   practices, disposal methods, insurance, and
                                   products produced

                              Also determine:

                                   Which state and local  officials may be
                                   knowledgeable of site activities

                                   Whether to contact PRPs  and former
                                   employees
     Process

     o
Prepare
Questions
     o    Contact Officials

     o    Review Files

     o    Conduct Title
          Search and
          Interviews
The following process should be performed in
conjunction with appropriate EPA personnel (EPA
primary contact, Regional Counsel).

o    While conducting the research, the researcher
     should consider the following questions:

          What types of wastes were generated?

          Where were the wastes generated?

          When were the wastes generated?
                                         24

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    If wastes were generated at the site, what
    were the waste streams?

    How were the wastes disposed of?

    Where were the wastes disposed of?

    When were the wastes disposed of?

    How much of the wastes were disposed of
    at the  site?  When?

    What type of security did the site have?
    (Condition of fence, guards present, hours
    of operation, gate locked?)

    What procedures were followed when a
    transporter arrived?  (Logged in by
    anyone?  Could anyone enter at anytime?)

    What kind  of "housekeeping" was practiced
    at the  site?

    Did developers of the property knowingly
    move the wastes of  concern?

    Did any contracts exist between owners,
    operators, transporters, and generators?
    If so, when did they exist?  Were standard
    forms  used?  Are copies available?

    Was there a monetary exchange between
    the site operator and the generator?
    Between the site operator and transporter?

    How many employees worked at the site?
    At  what times?  What were their duties?

    What are the names and last known
    addresses of the employees?

    Are there any disgruntled employees?

    Are any other individuals (neighbors,
    former employees) knowledgeable of the
    site?

    Did the site operator own the site?
    (Confirm answer with title search results.
    See Section 3.1.10)

    Did the site owner have any liability
    insurance?
25

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         Were any state or local agencies
         involved with overseeing site
      ,  operations?  If so, what are the
         names  of the agencies and officials
         who performed this role?

         What is the  relationship between
         federal, state, and local agencies with
         regard to this site?  If a relationship
         exists,  what is  its nature? Coopera-
         tive?

    Contact knowledgeable officials (see
    Section 3.1.5) to obtain:

         Information regarding  site operations

         Leads  to additional knowledgeable
         individuals

    Review EPA,  state, local, and site (if
    allowed) files for:

         CERCLA 104(e)  responses (see Section
         3.1.2)

         Leases on site property (see Section
         3.1.10)

         Inspection reports

         Waste disposal  permits

         Correspondence involving the site
         operator

         Manifests

         Weight tickets

         Dumping tickets

         Lists of employees

         Lists of customers and their
         addresses

         Leads  to other knowledgeable
         individuals

         Responses to interrogatories in state
         or federal lawsuits

         Lists of  transporters and their
         addresses
26

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                                             Conduct a title search (see Section 3.1.10)
                                             to identify leases on the site property.

                                             Interview  PRPs,  especially transporters and
                                             former employees (see Section  3.2.5) who:

                                                  May  provide first-hand information
                                                  regarding the site

                                                  May  be able to identify generators
                                                  when records are inadequate

                                                  May  have leads to additional
                                                  knowledgeable individuals

                                             Incorporate the history of operations at
                                             the site into the  site history section of
                                             the draft report  (see Section 3.1.4).
PROBLEMS/RESOLUTIONS
The documents contain unclear or
conflicting information about the site
history.

     Contact the authors of the documents
     to verify the information.

     Contact other individuals who may be
     able to clarify the information.

     State in the report that  the
     information is unclear and describe
     how the investigator attempted to
     verify  the information.
                                         27

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               3.1.5   INTERVIEWS WITH GOVERNMENT OFFICIALS
OBJECTIVE

The objective of this task is to (1) develop additional information on site operations, site
history, and PRPs, and (2) to identify government agencies or private parties that may
possess relevant documents or information.  This can be a very productive research
avenue because government officials, especially state or local officials, often work
directly with hazardous waste sites and have more intimate knowledge of the sites. The
interviews may reveal valuable personal recollections not  recorded in documents.  Sample
PRP search reports that included interviews are presented in Appendix I, Examples  1 and
2.  Example 9 presents a method of including interview summaries in a report.  These
examples also show the types of information the researcher may collect during interviews.
PROCEDURES
     Initial Information
     Needs

     o    Background
          Information

     o    Names of
          Government
          Officials
     Process
          Contact
          Government
          Officials

          Discuss the
          Purpose of the
          Interview

          Conduct the
          Interview
Before conducting interviews, the researcher will
need to:

     o    Review EPA background information on the
          site.

     o    Obtain the names of state or local
          government agencies and officials involved
          with the site.

     o    Generate a list of site-specific questions.
          This list will need to be modified for
          different interviewees depending on their
          relationship with the site. The type of
          information to obtain is listed below and
          in Section 3.1.4.  A sample interview form
          is provided in Appendix  E.
In conducting interviews, the contractor should
follow the procedure outlined below.

     o    Contact all initially identified government
          officials by telephone (or by letter or in
          person,  if necessary).

     o    If a contractor is conducting the
          interview, identify yourself as an EPA
          contractor conducting background research
          on the site.
€
                                         28

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    Ask the government official about:

         The availability of relevant documents
         in the government official's files, and
         whether copies can be obtained

         Activities on the site before, during,
         and  after the site's suspected use for
         waste disposal

         PRPs associated with the site

         Site enforcement history

         Administrative or legal actions
         involving the site and the PRPs and
         the location of relevant documents;
         administrative or legal actions include
         those such as:

               Lawsuits
               License or permit violations
               Cleanup orders

         Relevant state  or local regulatory
         requirements and the location  of
         relevant documents including:

               Hauler licenses
               Landfill permits
               Business licenses
               Building permits
               Zoning ordinances

         Newspaper articles concerning the
         site

         Other possibly knowledgeable  people,
         organizations, or local sources  to
         contact such as:

               Other current or former
                    government officials and
                    agencies
               Current or former site
                    employees
               Site neighbors
               Citizens and citizens groups
               Local environmentalists
               The public library

         Interviewing the official  (if
         necessary) and  reviewing relevant
         files
29

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PROBLEMS/RESOLUTIONS
Persons with  knowledge of the site no
longer work for the government.

     Locate these persons and request
     interviews, just as with  other private
     parties.  If a contractor  is conducting
     the research, EPA approval may be
     required prior to  contacting these
     persons.

Government officials or agency attorneys
are hesitant about giving interviews
because of ongoing litigation.

     Attempt to work out an acceptable
     arrangement with the government
     officials or attorneys, even if the
     scope of the interview is limited.
     Contact the EPA  primary contact for
     advice or  involvement.

The official has a large amount of
information,  and the interview is being
conducted by telephone.

     Ask the interviewee if the telephone
     conversation can  be tape-recorded.
     Explain to the interviewee  that this
     will speed up the interviewing process
     and will ensure that the answers are
     properly recorded. If the official
     agrees, the telephone conversation
     can be taped on a recorder
     containing a beep tone warning every
      15 seconds.  (State laws  pertaining to
     recording  telephone conversations
     should be  reviewed.)  Be aware that
     this method  may  cause some
     interviewees to be reluctant about
     answering questions.

The interviewer needs  to improve his
interviewing techniques.

     References are available at public
     libraries that provide advice on
     conducting successful interviews. The
     references may be written for
     purposes other than obtaining
     historical  information about a site,
     but the basic techniques can be used
     during a PRP search. Examples of
     such references are:
                                         30

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         Donaghy, William C, 1984; The
         Interview:  Skills and Applications.
         Scott, Foresman and Company,
         Glenview, Illinois.

         Garrett,  Annette, 1982; Interviewing,
         Its Principles and Methods.  Family
         Service Association of America,  New
         York.

         Royal, Robert F. and Steven R.
         Schutt, 1976; The Gentle Art of
         Interviewing and Interrogation.
         Prentice-Hall, Inc., Englewood Cliff,
         New Jersey.
31

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                    3.1.6   PRP NAME AND ADDRESS UPDATES
OBJECTIVE

The objective of this task is to obtain current PRP names and addresses, thus enabling
EPA to send CERCLA  104(e) letters. Other information, including current corporate
address, registered agent, mergers, name changes, and dissolutions, may be collected  to
ensure that  all PRPs are contacted.
                                                                                         i
PROCEDURES
     Initial Information
     Needs

     o    Original List of
          PRPs

     o    Degree  of Detail
          Needed in
          Updated List
     Process
          Contact
          Secretary of
          State's Office

          Contact or
          Review Other
          Sources of
          Information

          Revise
          Correspondence
          Tracking System
          if Necessary
Before the researcher can update the name and
address list, the following must be known:

     o    Original names and addresses.

     o    The level of detail needed in the updated
          list, such as corporate address as filed
          with the Secretary of State's office,
          registered agent address, or address from
          telephone directory.

     o    Contact the Secretary of State's  office  for
          each state involved.

               Obtain the current corporate address,
               registered agent name and  address,
               name changes, mergers, and
               dissolutions.

               If possible, obtain information over
               the telephone; otherwise, obtain a
               written report from the Secretary of
               State's office (allow extra time for
               mail delivery).

     o    For companies not listed with the
          Secretary of State, conduct additional
          research using the following sources:

               Local industrial directories

               Local newspaper archives

               Long distance information

     o    If the researcher is also tracking PRPs,
          revise the correspondence tracking system
          (see Section 3.2.12) as modified or
          corrected address information is received.
i
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PROBLEMS/RESOLUTIONS
The Secretary of State's computerized
system may not contain older information
on company names.  Weeks of state
research time are often encountered.

     Consider traveling to the state office
     to review the older files.

     Consider reviewing early industrial
     directories  to obtain information on
     name changes.

The Secretary of State's files are not
always current.

     To determine the reliability of the
     information, ask the Secretary of
     State's office about its methods of
     updating information.

     To confirm addresses, consider using
     an alternate source of information
     such as  a current telephone directory
     or industrial directory.
                                         33

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                        3.1.7   PRP STATUS/PRP HISTORY
OBJECTIVE

The objective of this task is to develop background information on companies or
individuals identified as PRPs, thus enabling EPA to identify successor or parent company
PRPs, correspond with PRPs, and conduct financial assessments of PRPs. Corporate
information should include the date of incorporation, whether or  not corporate PRPs
currently exist, the fate of inactive companies, current mailing addresses (facility,
headquarters, and registered agent), and parent or successor companies.  Information
obtained for individuals and unincorporated companies should include their current
location, their association with other PRPs (company officer for another PRP), and their
involvement with a site. Examples 1 and  5  in Appendix I,  Sample Reports, each have
sections on PRP status or PRP history.
PROCEDURES
     Initial Information
     Needs

     o    Addresses Needed

     o    Information
          Needed
Before developing PRP information, the researcher
should determine which identified PRPs are to be
researched and the anticipated use of the research
information.  Specifically determine the types of
information needed, such as:

     o    Which mailing addresses are relevant:

               Headquarters  address

               Facility address

               Registered agent names and addresses

               Officer names and addresses

     o    The extent of PRP  history needed by EPA
          including:

               Simply determining whether a
               company currently exists

               Developing a  full PRP history
               including the  fate of currently
               inactive companies

     o    Whether company officer  information is
          needed.

     o    The type of information needed on private
          individuals who may be PRPs.
                                        34

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Process
                              individuals identified as PRPs, the researcher should:
     Review Site
     Documents
     Contact
     Information
     Sources

     Organize
     Database, if
     Necessary
In developing information on companies and
          Review site documents for information
          such as PRP names, addresses, and the
          history on companies or individuals.

          Contact information sources; obtain verbal
          information and copies of documents, if
          available.  The Secretary of State's office
          is generally the key source of information.
          Other sources can be used if a company is
          not incorporated or if supplemental
          information is required.  Examples of the
          most commonly used sources include:

               The Secretary of State's office,
               specifically (for incorporated firms):

                    Corporation  division
                    Uniform Commercial Code (UCC)
                         division
                                             The local public library and reference
                                             librarian for access to:

                                                  State, regional, or local
                                                       industrial directories
                                                  City directories
                                                  Telephone directories
                                                  Local newspapers
                                                  Local or regional Who's Who
                                                  Moody's Industrial Manual
                                                  Standard and Poor's Corporation
                                                       Descriptions
                                                  Index of Corporation Affiliations

                                             The local Chamber of Commerce for:

                                                  Current directory of chamber
                                                       members
                                                  Historical  directory of members
                                                       (rare)

                                             The county or city clerk, business
                                             license office, county assessors'
                                             office

                                             Local  tax records

                                             Historical societies
                                   35

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                                                 DIALOG Information Retrieval Service
                                                 (available at many public libraries),
                                                 which includes data sources such as:

                                                      Dun & Bradstreet's files
                                                      Thomas* Register
                                                      Disclosure
                                                      Electronic Yellow Pages

                                            If many PRPs  are involved, it may be more
                                            efficient to organize a database using
                                            software such  as dBASE III or LOTUS 1-2-
                                            3 (see Section 3.2.13). Depending on
                                            EPA's information needs, include:

                                                 Current PRP name

                                                 Former PRP name

                                                 History

                                                 Registered agent name and address

                                                 Corporate headquarters address

                                                 Facility address

                                                 Parent company address
PROBLEMS/RESOLUTIONS
It is possible that a corporation will go
out of business and another corporation
will assume the former corporation's name.

     Check incorporation and  dissolution
     dates or dates of operation against
     site operation dates.

     Check the Secretary of State's  office
     to  track the history of corporate
     mergers,  takeovers, and name
     changes.

Determining PRP status for numerous
parties becomes overly time consuming.

     Establish priorities (with  EPA  if a
     contractor is involved).

     For simple  PRP status (company
     existence, headquarters address,
     telephone number) anticipate limiting
     the effort to one-half hour or one
     full hour per PRP, including
                                        36

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         research and reporting.

         For complicated history (including
         mergers, name changes, and purchase
         of assets), several hours of effort per
         PRP may be required.  In this case,
         only provide information on those
         PRPs clearly linked to the site or
         other criteria as determined by the
         EPA primary contact.

         Review the Hazardous Waste
         Enforcement Policy (Federal Register,
         Vol. 50, No. 24, Tuesday, February 5,
         1985).  This interim policy describes
         the approach EPA "is now  taking in
         evaluating private party settlement
         proposals for cleanup of hazardous
         waste sites or contribution to funding
         of response action under" CERCLA.

    The state in which a company is
    incorporated may not be known.

         Contact the Secretary of State's
         office  of the state in which the
         company is located.

         Review all relevant background
         information.

    Obtaining information by telephone from
    local sources and for many PRPs is very
    time consuming.

         Consider traveling to the site
         location  to personally review local
         sources of information such as city
         directories, newspaper  articles, and
         telephone directories.
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                          3.1.8  RECORDS COMPILATION
OBJECTIVE

The objective of this task is to organize a set of documents according to a system that
will allow the user to easily access and review information in the documents, as well as
maintain accurate documentation of all findings. This system should allow easy  retrieval
of information and should provide an index that accesses the information desired.
Example 7 in Appendix I, Sample Reports, is a  PRP search  report that involved both
compilation of records and  development of a transactional database.
PROCEDURES
     Initial Information
     Needs

     o    Method of
          Organization
The records compilation may require simple or
complex organization, depending on EPA's needs.
Processes for both are discussed below.  To choose
the best method of organizing the documents and to
complete this organization in a timely manner, the
researcher must consider several factors, including:

     o    Types of information needed from the
          documents.

     o    Approximate number of documents and the
          time needed to organize them.

If a contractor is conducting the records compilation,
these factors should be discussed with the EPA
primary contact to determine the desired product and
specific requirements.
     Process
     (Simple Organization)

     o    Arrange
          Documents
          Manually

     o    Assign Index
          Numbers

     o    Develop an Index
If a simple organization is needed, such as organizing
documents by PRP, the researcher should  use the
system outlined below.  This system is used for both
small  and large quantities of documents.

     o    Arrange the  documents manually based on
          case needs and projected document  use.
          Documents may be organized by methods
          such as:

               Chronological order

               Subject matter

               Like documents

     o    Assign the documents an index number,
          such as a Bates stamp  number.
                                                                                      i
                                        38

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                                       Develop an index for the document set
                                       based on such factors as:

                                            Index numbers and the title of each
                                            document

                                            The author and date of each
                                            document
Process
(Complex
Organization)

o    Group Like
     Documents

o    Assign Index
     Numbers

o    Develop an Index

o    Program
     Database to
     Access
     Information
If complex organization is needed, such as extensive
cross-referencing or key-word indexing, use the
system outlined below.  If a contractor is  conducting
the  records compilation, the EPA primary contact
and others who will use the information should be
consulted before each step.  Refer to Creating
Databases, Sections 3.2.12 through 3.2.14, for a more
detailed discussion.

     o    Group documents of similar content, such
          as scientific  or legal documents.

     o    Assign an  index number to each document.

     o    Develop an index using a database.
          Include the index number and decide what
          information  to use in the database index.
          Examples of  additional information from
          each document include:

              Title

              Date

              Author

              Addressee

     o    Develop a more complex database, if
         necessary, using:

              Coded designation for particular
              subject matter

              A database index to refer to the
              particular subject

              Key word indexing (be sure  that
              appropriate EPA personnel are
              involved in determining the  key
              words)
                                  39

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                                           Program the database to access
                                           information in various  ways such as:

                                                Chronological order

                                                Authors

                                                Key words (be sure that  appropriate
                                                EPA personnel are involved in
                                                determining  the key words)

                                                Subject matter
PROBLEMS/RESOLUTIONS
New documents are added to the set after
the work is completed.

     For a small set of documents, the
     new ones can still be included in the
     appropriate order.  For example, new
     documents inserted  between
     documents 10 and 11 can be
     numbered 10.1, 10.2, and so on.

     With a database index, new
     documents can  be integrated into the
     system and the index.  The computer
     can perform all necessary searches.
     The database index may require
     significant revisions if a large number
     of new documents are  discovered
     after the key words are selected  or
     the index is created.
                                       40

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                           3.1.9  REPORT PREPARATION
OBJECTIVE

The objective of this task is for the contractor to present PRP information requested by
EPA in a comprehensive written summary that discusses the research performed, research
results, and  recommendations for  additional research. The  report must be fully
documented, attributing all information presented to specific sources.  Reports should
summarize all important information collected during both  the baseline PRP search and
additional site-specific tasks (see Section 3.2). Reports prepared by the contractors are
enforcement confidential; the contractors can submit these reports only to EPA.
Appendix I  includes nine examples from PRP reports that involve various tasks.
PROCEDURE
     Initial Information
     Needs

     o    Establish Report
          Deadlines,
          Objectives, and
          Format

     o    Organize
          Research Results

     o    Identify
          Information
          Sources to
          Reference
Before preparing a report, the contractor should:

     o    Establish with EPA all reporting
          requirements.  Report contents and format
          should  be consistent with requirements of
          the CERCLA Enforcement Division to
          facilitate cost recovery actions. The
          reporting requirements should include at a
          minimum:

               Report format

               Content

               Objectives

               Deadlines for delivery

     o    Organize and review  all research materials
          and information  including:

               Copies of all documents

               Interview results

               Title search results

               Corporate information

               Financial information

               Researcher's complete and accurate
               notes

               Audio tapes, if any (determine
               whether audio tapes should be
               transcribed  to hard copy)
                                        41

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                                         Develop a thorough understanding of
                                         available research tools and information.

                                         Identify specific relevant sources to  be
                                         referenced in report.
Process

0
Provide
Background
Information

Explain the
Scope of Work

Discuss Site
History

List Identified
PRPs

Present
Conclusions and
Recommendations

List References
The comprehensive PRP report summarizes all the
relevant information gathered during the research
effort. To prepare a thorough and well organized
report, the contractor must present information on  a
wide range of topics in a structured and integrated
format. Specifically, the contractor should:

     o    Provide background information on the  site
          including:

               Location (site map)

               Period and nature of operation

               Physical features of the site

               Reason for investigation

     o    Describe the specific tasks proposed in the
          Work Plan and the tasks actually
          performed.

     o    Identify the various sources contacted and
          their connection with the site, including:

               EPA contacts

               State and local officials

               Private individuals

     o    Describe the  information and records
          obtained as a result of the research.

     o    Describe the site property ownership,
          possibly using:

               A property history narrative

               Charts  or maps

               A title  abstract

    o    Discuss the history of the property  as a
          hazardous waste  site, specifically
          addressing:
                                   42

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         Site operations

         Disposal methods

         Reference sources

         Gaps  in information

    Present interview results.

    List all identified PRPs as a generator,
    transporter, owner,  or operator (current
    and past).  Give the documentary evidence
    supporting the inclusion of each PRP on
    the list. The evidence  should  be organized
    to provide  efficient retrieval  for a
    particular  PRP.  Although past owners are
    liable only if  they were owners at the
    time of disposal (Section 107(a)(2) of
    CERCLA), this determination should be
    made by EPA, not the  contractor.  Provide
    the following for each PRP:

         A basis for inclusion (referenced)

         PRP status and PRP history

         Financial information

    Provide, if applicable, separate lists  of
    PRPs and information request recipients.
    The report may identify parties that
    should be contacted, yet are not PRPs.
    These cases should  clearly be  identified.

    Present any quantitative or qualitative
    waste information developed for each
    identified  PRP.  Provide a preliminary
    volumetric ranking based on available
    information.

    Summarize all research and develop
    conclusions.

    Make specific recommendations for
    additional  PRP research, where appropriate.

    Provide a list of referenced documents.

    Provide copies of all relevant documents to
    EPA in an indexed fashion.  The
    researcher's notes do not need to be
    included in these documents.

    Mark on the cover  of the report that it
    was prepared in anticipation of litigation.
    This allows EPA to protect the report
    during discovery, if necessary.
43

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PROBLEMS/RESOLUTIONS
Research yields important information that
should be delivered to EPA before delivery
of a lengthy report.

     Explore with EPA  the possibility of
     delivering an interim report or
     briefing containing this vital
     information.

Research results in numerous data gaps.

     Identify data gaps and recommend to
     EPA further activities  that may  be
     necessary to obtain additional
     information.

Research yields voluminous  records or
uncovers many  promising leads.

     Determine EPA's priorities such  as
     (1) which  records or leads to
     research and (2) EPA's need to
     receive the report  before all avenues
     are researched (unresearched records
     or leads should be identified in  the
     recommendations).
                                         44

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                                3.1.10 TITLE SEARCH
OBJECTIVE

The objective of this task is to identify past and present site owners.  Although past
owners are liable only if they were owners at the time of disposal (Section  107(a)(2) of
CERCLA), this determination should be made by EPA, not the contractor.  Other PRPs
connected with the site may also be  identified during a title search  if their roles appear
in recorded documents. Specific results of the title search include summaries of
transactions involving the site property, identities of PRPs, and copies of title documents.
From this information the present and past owners of the property,  and often lease
agreements with site operators, can be identified. Other information may include  how
the site property was used during various periods of  time.  A title search may also be
conducted for parcels adjacent to the site.  This may provide names of people who are
familiar with past or present site activities; these people can then be contacted and
interviewed. A title search  for adjacent parcels may also provide information about
other activities in the area that  may have contributed to contamination at the site.
Examples 1, 3, and 4 in Appendix I, Sample Reports, present title search findings.
Example 3 is a report that included  only a title search.  The history of ownership is
explained with numerous figures. Example 4 shows another method of depicting chain-of-
title  information.
PROCEDURES
     Initial Information
     Needs

     o    Site Location

     o    Site Description

     o    EPA
          Requirements
Before beginning the actual title search, the
researcher will need to obtain information on the
site location, site description, and specific EPA
requirements for the title search. For this task, the
researcher may be the contractor or a title company
subcontracted by the contractor. Specifically, the
researcher should:

     o    Locate the site on a map and obtain a
          legal description, if available.

     o    Obtain additional indicators of the site
          location and description including:

               County tax assessor's  parcel number

               Street address

               Name of owners

     o    A survey of the site may be required if
          the legal description or exact location of
          the site is unknown.  This may also be
          necessary if the site consists of several
          parcels and the relationship between the
          parcel boundaries and the site boundaries
          is unclear.
                                         45

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Process

o    Obtain
     Subcontractor

o    Oversee Work

o    Prepare
     Ownership
     History
                                        Determine EPA's specific requirements for
                                        the title search.  The Regional Counsel
                                        should be consulted for this determination.
                                        Title search requirements should focus on:

                                             The time period the title search is to
                                             cover

                                             Whether certified copies of any of
                                             the title documents are  required (see
                                             Problems/Resolutions section)

                                             The summary format of title search
                                             results

                                        Determine the types of documents that
                                        EPA specifically needs copied.
To subcontract a professional title researcher to
perform the title search, the EPA contractor should:

     o    Obtain the names of some title researchers
          in the county in which the site is located.
          These names  can be obtained from the
          following sources:

               County  recorder's office in the
               county seat

               Long Distance Yellow Pages
               information

               Chamber of Commerce

               Title company directories such as
               American Land Title Association

     o    Contact several title researchers. Larger
          title search companies with offices in
          metropolitan  areas  may have  branch offices
          near the site  or may be able to recommend
          local companies. If possible, contact  title
          companies that have experience with
          CERCLA cases, such as testifying in or
          preparing for them. Companies that have
          experience in testifying in court or are
          willing to sign affidavits relating to their
          work are preferable.

     o    Explain the title search requirements
          including:
                                   46

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         The time period to be covered by the
         title search

         Copies (certified or not) of all
         recorded title documents needed

         A list of the names and dates of
         each title document and the parcel(s)
         each affects

         Maps displaying current and past tax
         parcel boundaries

         A clear summary of the ownership
         history

         The fact that no title insurance is
         needed for  this work

         Schedule requirements

     Obtain approximate cost and delivery
     schedule estimates (verified in writing)
     from each title researcher.

     Select  one title researcher.  Selection
     should be based on qualifications.
     Qualification requirements may  include
     such factors as:

         Number of  title searches previously
         conducted

         Recommendations from references

         Current liability insurance

     Prepare and complete a contract.  The
     contract should include the maximum dollar
     amount for the search (not to be exceeded
     unless notified).

     Maintain close and continuous contact with
     the title researcher.

     Review title search work products to
     determine whether:
         The correct property was researched

         Erroneous documents were provided

         Missing or unreadable documents exist
47

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         Documents are incomplete

         The property descriptions in the
         documents relate to site property

         The chain-of-title is continuous (no
         gaps appear in the chain)

    Contact the title researcher to resolve any
    errors or questions.

    Prepare a reference list of all recorded
    documents, including their location (book
    number,  page number). Recorded
    documents may include:

         Deeds

         Leases

         Grants

         Mortgages/liens

         Easements

         Agreements

         Legal  property descriptions

    Prepare  a clear summary of the site
    ownership history (if not completed by the
    title researcher).  To complete this
    summary, the preparer should:

         Arrange documents chronologically.

         Determine the history of each parcel.

         Briefly describe each transaction and
         whether it affects all or a portion of
         the site.  Items to be described,  as
         appropriate, include:

              Type of transaction
              Date of transaction
              Date recorded
              Parties  involved and their role
              Effect on the site
              Declaration of trust
              Schedule of beneficiaries
              Restrictive covenants
              Death certificates
              Easements
48

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         Terms of transaction (such as a 5-
         year recorded lease).

         Determine whether the transaction
         transferred all rights to the land.
         For example, the determination of
         whether the mineral rights were
         transferred with the surface rights,
         or whether the mineral rights were
         valid,  is important for sites in mining
         areas.

         Explain specific terms, including:

              Quit claim deed
              Conditional sales contract
              Partial release of deed of  trust
                     and mortgage
              Warranty deed

         Include charts  and maps where  these
         are useful.

         Provide precise references to
         documents (EPA may need to access
         these documents at a later date).

    Obtain additional information about past
    and present owners if they are
    partnerships, corporations, or trusts.

         If the  property  is owned by a
         partnership, obtain a copy of the
         Partnership Agreement or  the
         Dissolution of  Partnership.

         If the  owner is a corporation, obtain
         the Certificate of Incorporation.

         If the  property  is owned in trust,
         obtain a copy of the Declaration of
         Trust, the Trustee Certificate, and
         Schedule of Beneficiaries.

    A title search is usually considered
    complete when the ownership history is
    clear and complete for each of  the site
    parcels.
49

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PROBLEMS/RESOLUTIONS
The researcher is unsure of the period of
interest to be covered by the title search.

     Assure that the title search includes
     the time  period of known industrial
     activity at the site. The title
     company may be able to determine
     this at the outset of the search.  The
     period of industrial activity may also
     be obtained from research of other
     agency files (see Section 3.1.1).

The amount of time and money  required
by the researcher to complete the title
search is uncertain until the work is well
underway.

     Close contact between the title
     researcher, EPA contractor, and EPA
     is required to become aware of and
     address scheduling  and budget
     changes.

It is difficult  to decide  whether certified
copies of title documents are desirable.

     During discovery,  EPA may request
     admissions concerning property
     ownership. If parties do not admit
     their ownership, EPA can recover the
     costs of obtaining  the certified copies
     necessary to  prove  ownership at that
     time from the recalcitrant parties.
     As certified copies are extremely
     expensive, close coordination with the
     EPA primary contact and Regional
     Counsel  is required to determine
     whether  certified copies are required.

Despite the usual attempt to obtain a
professional title researcher to perform the
title search, the contractor cannot find a
researcher who is  willing or able to do the
work.

     The contractor will perform the title
     search working closely with the EPA
     primary  contact.  The person
     conducting the search should be
     qualified and have prior experience in
     this area.
                                         50

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             3.2    TASKS PERFORMED TO FURTHER CHARACTERIZE
                          SITE-SPECIFIC PRP ASSOCIATION
     Section 3.2 contains 18 specialized tasks. These tasks are categorized into four
subsections: (1) obtaining specialized information, (2) performing waste stream
comparisons, (3) creating databases, and (4) performing other tasks.

     The subsection on obtaining specialized information includes eight  tasks that may
provide more information about a site and its PRPs. These eight tasks are listed
alphabetically within the subsection.

     The subsection on performing waste stream comparisons includes three tasks.  Two
of the tasks, industrial survey and waste stream inventory, usually must  be completed
before the  third task, process chemistry analysis, can be completed.

     Three tasks are listed in the subsection  on  creating databases.  These tasks allow
large amounts of data, such as types and quantities of  waste, or key document
information, to be managed more efficiently.  These tasks are also listed  alphabetically.

     Four  tasks not directly related  to PRP identification but often  included in PRP
searches are listed alphabetically in the subsection on performing other tasks.  These
tasks are compliance history, financial assessment, generator ranking, and property
appraisal.
                                         51

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                           3.2.1    AERIAL PHOTOGRAPHS
OBJECTIVE

The objective of this task is to locate and obtain copies of aerial photographs pertaining
to a specific site. Aerial photographs can be beneficial in a PRP search because they
often  show the  relationship between the site and its surroundings. Aerial photographs
are generally larger in scale than topographic maps.  Aerial photographs, taken over a
period of  time,  can be  useful in characterizing  the chronological development of a site
and its surroundings.  These photographs are valuable in determining if lagoons, ponds,
or other disposal areas were active during a PRP's tenure as owner or operator.  Current
aerial photos can provide information otherwise obtained from a site survey.
PROCEDURE
     Process (Historical
     Photographs)

     o    Gather
          Background
          Information

     o    Obtain Historical
          Photographs

     o    Evaluate
          Photographs
The following steps provide a method for obtaining
historical information about the site.

     o    Gather background information on the site,
          including:

               Site location and size

               Duration of site operation

               The need to identify site features to
               a high level of detail (will determine
               enlargement needs)

     o    Obtain the aerial photographs.  Historical
          aerial photographs are available through
          several sources.  If a contractor is
          conducting the research, arrangements
          must be made through EPA to access the
          last two sources  listed on the following
          page.

               Local commercial aerial surveyors or
               photographers

               State agencies or departments

               State or county surveyor's office

               U.S. Geological Survey  (USGS)
               National Cartographic Center
               507 National Center
               Reston,  Virginia 22092
               703/860-6045
                                        53

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Process (Current
Photographs)
                              a site visit.
o    Gather
     Photograph
                                             U.S. EPA Environmental Monitoring
                                             Support Laboratory (EMSL)
                                             P.O. Box 15027
                                             Las Vegas, Nevada  89114
                                             702/798-2100

                                             EROS Data Center
                                             Sioux Falls, South Dakota  57198
                                             605/594-6151

                                        Evaluate the photographs. The  researcher
                                        can conduct  a simple analysis of the
                                        photographs  to characterize obvious site
                                        features. A comparison  of the historical
                                        photographs  will give an  indication of the
                                        site history, such as:

                                             When industrial or disposal activities
                                             began at the site

                                             When manmade structures  were
                                             constructed (buildings, impoundments)

                                             When land units were closed or
                                             covered
The following steps provide a method for obtaining
current information about the site without conducting
     Background
     Information

     Obtain Current
     Photograph
                                             Duration of site operation
     Evaluate
          Gather background information on the site,
          including:

               Site location and size
               The need to identify site features to
               a high level of detail (will determine
               scale and enlargement needs)

          Contact aerial photograph sources (listed
          above) to determine if a current aerial
          photograph is available.

               Order and obtain  available
               photographs,

               If not available, determine whether
               an aerial photograph is required; if  a
               contractor is conducting the  search,
               consult EPA.
                                   54

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                                             If a current photograph is required, but
                                             not already available, contact aerial
                                             photograph sources (listed above) to
                                             determine if they can photograph ("fly")
                                             the site.

                                             Select a photograph source and  obtain a
                                             current photograph.  Proper contract
                                             procedures must be followed.

                                             Evaluate the photograph.  The researcher
                                             can conduct a simple analysis of the
                                             photograph to characterize obvious site
                                             features. Possible information that  can be
                                             obtained includes:

                                                  Dimensions of the site

                                                  Topographic characteristics

                                                  Number and types of manmade
                                                  structures

                                                  Presence of surface  impoundments

                                                  Types of vegetation

                                                  Surface hydrology

                                                  Presence of waste disposal areas and
                                                  possibly the types of wastes disposed
                                                  of

                                             If the information will be used  to draw
                                             conclusions regarding the  connection of
                                             PRPs to the site, the  assistance of highly
                                             skilled and trained remote sensing
                                             specialists should be  solicited.  EPA's
                                             EMSL at Las Vegas can provide such
                                             assistance.
PROBLEMS/RESOLUTIONS
In a photograph, the exact boundaries of a
site may not be distinguishable.

     The contractor  can use title
     documents and  landscape features to
     draw appropriate property  boundaries.

Aerial photographs are not readily
available

     Non-aerial historical photographs are
     also useful in obtaining information
     about the site.
                                        55

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                     3.2.2    CERCLA SUBPOENA AUTHORITY-
OBJECTIVE

The administrative subpoena provision of SARA, Section 122(c)(3)(B), gives EPA the
power to require the attendance and testimony of witnesses and the production of
documents as is "necessary and appropriate" for performing a non-binding preliminary
allocation of responsibility (NEAR) "or for otherwise implementing" the settlement
provisions of Section  122. While NBARs are specifically mentioned in CERCLA, there is
no requirement that EPA first decide to prepare an NEAR before issuing an
administrative subpoena or that the information gathered by  an administrative subpoena
be somehow only used for an NBAR.  The language of Section 122 is  broad and permits
the use of administrative subpoenas not only for preparation  of NBARs, but also for
factors set forth in Section 122 (c)(3)(A)  that may be considered when preparing an
NBAR.  These factors are a  useful outline of the types of information that may be
obtained with an administrative subpoena.

Administrative subpoenas may be used at any time prior to settlement, and even prior  to
an administrative  or civil enforcement action, to gather any information that  may aid  in
ultimately reaching a settlement.

An administrative subpoena is most productive in two  situations;  where preliminary
information has already  been gathered and  the examiner wishes to question a  particular
person in detail, perhaps with the  use of documents or exhibits, and  where expedited
enforcement is being  considered.

A subpoena can be served in a number of ways depending on the circumstances of the
investigation. Whenever possible, personal service is preferred, especially when it is
likely that the subpoena  may be ignored or  challenged.  When personal service is not
practical, a subpoena can be served by registered or certified mail, return receipt
requested. Regardless of how the subpoenas is serviced, the correct person must be
served.  Clearly, a subpoena to testify must  be directed to and served upon the person
whose testimony is sought.  A subpoena to provide documents must be served upon the
custodian of the records  or documents sought or upon a person authorized to compile the
information sought.  The person serving  the subpoena,  including the  person who actually
mails the subpoena when that method of service is used,  must complete an affidavit of
service at the time of  service.

An administrative subpoena should not be issued in lieu of enforcing an information
request and should not be confused with a deposition or other means of discovery.
Administrative subpoenas arc to be used prior to filing a complaint, and generally can be
used to obtain a wider range of information than is possible during discovery.

*    Guidance for use of CERCLA subpoena authority under SARA Section 122 is being
     developed by the Office of Enforcement and Compliance Monitoring (OECM). This
     information  will be made available as soon as possible for inclusion in this manual.
     For  any questions prior to the issuance of additional information, contact Tom Fiore
     of OECM at  FTS 382-3105.
                                         56

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                               3.2.3    FIELD SURVEY
OBJECTIVE

The main objective of a supplemental field survey is to gather additional evidence
through field activities that may connect or associate PRPs with hazardous waste storage
or disposal at the site. Field surveys are recommended when little other information is
available. This task is a routine  part of site  investigations (SI) and remedial
investigations (RI). The  EPA primary contact for the PRP search should coordinate with
EPA personnel responsible for the SI and RI  to ensure that information  is collected
efficiently.
PROCEDURE
     Initial Information
     Needs

     o    SI or RI Status
This task is a routine part of site investigations (SI)
and remedial investigations  (RI). To eliminate
redundancy, the EPA primary contact should
determine if an SI or RI has been or will be
conducted.   If a contractor is conducting the survey,
the coordination with other  agency personnel should
be conducted through the EPA primary contact,
unless directed  otherwise. Coordinating the PRP
search with an  SI or RI will affect  the  contractor's
scope of work,  level of effort, and schedule.

     o    If an SI or RI has been conducted:

               Obtain and review information already
               collected.

               Determine if additional data  is needed
               from a field survey; if so, conduct
               the  survey as described  in the
               Process section.

     o     If an SI or RI is underway, planned, or
         anticipated:

               Contact the EPA personnel
               responsible for the SI or RI to
               discuss:

                    Data to be collected
                    Schedule  of data collection
                    Modification of data collection
                         plan to include PRP search
                         needs
                    PRP researcher's role in the SI
                         or RI
                                         57

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Process

o
Obtain
Background
Information

Determine  Who
to Contact

Determine
Information Gaps

Plan Field
Activities

Obtain
Permission from
Site Owner

Conduct General
Field Inspections

Record Drum
Label
Information

Take Samples for
Analysis
               If the PRP researcher is to lead the
               field survey, follow the process
               described  below with  appropriate
               modifications to satisfy the SI or RI.

     o    If an SI or RI has not been conducted and
          is not anticipated, follow the process
          described  below to conduct the field
          survey.

To safely and  efficiently  obtain useful information
from a field study, adequate planning and preparation
are required.

     o    Review site background data and
          information obtained through interviews to
          identify the logistical requirements of the
          field survey as well  as the  focus of the
          survey.

     o    Determine safety considerations; prepare a
          site safety plan, if appropriate.  Field
          surveys should  be conducted only by
          personnel  enrolled in a medical  monitoring
          program and certified in the appropriate
          use of safety equipment warranted by site
          conditions.

     o    Determine the  individuals and businesses  to
          contact during  the survey.

     o    Determine information gaps and questions
          to ask  based on previously  reviewed
          information.

     o    Plan and schedule field activities.

     o    Obtain permission to enter the site from
          the  site owner before conducting the
          survey.  If a contractor is conducting the
          survey, EPA resources may be required  to
          seek access.

     o    Document all findings accurately to  ensure
          their usefulness.

     o    Conduct a general field inspection.

               Identify site layout, buildings,
               disposal and release areas,  wash
               stations, and drop areas.

               Identify locations where records may
               be kept.
                                    58

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                                                 Record abandoned vehicle license
                                                 plate  numbers, registrations, and
                                                 Interstate Commerce Commission
                                                 (ICC) numbers.

                                                 Take  photographs (describe each
                                                 picture in a field notebook).

                                                 Gauge the level of effort that may be
                                                 required later, particularly if sampling
                                                 is to be conducted or drum label
                                                 information is to be obtained.

                                                 Identify any previously unforeseen
                                                 logistical problems.

                                       o    Review the documents (see Section 3.2.4).

                                       o    Conduct personal interviews with
                                            employees, neighbors, and owners and
                                            operators (see Section 3.2.5).

                                       o    Record drum label information.

                                                 Record or photograph all visible drum
                                                 label  markings, hazard warnings, and
                                                 drum lot and inventory numbers.

                                                 Do not touch drums.

                                       o    If appropriate, take samples for analysis
                                            (procedures for site sampling are in
                                            Section 3.2.8).
PROBLEMS/RESOLUTIONS
The researcher determines that abandoned
operating records are located at the site.

     The contractor or EPA enforcement
     staff should obtain written permission
     from the owner or operator of the
     site or  verbal permission from the
     EPA Regional Counsel to obtain these
     documents.

Both removal action and field survey are
planned for  the CERCLA site.

     Contact the on-scene coordinator as
     early as possible to coordinate your
     field survey activities. You may want
     to conduct a preliminary survey prior
     to any  remedial activities to ensure
     that valuable evidence is not
     destroyed.
                                        59

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                              3.2.4   PRP FILE REVIEW
OBJECTIVE

The main objectives of this task are to (1) locate and obtain all relevant PRP documents
pertaining to the site and (2) gather information from these documents about a site's
history of operations, including details on  waste types and amounts and PRPs possibly
involved with the site. Relevant  documents may include those from citizens' groups,
newspaper articles,  customer lists, bills of lading, gate logs,  ledgers, accounts receivable
records, former customer lists, change of address lists, customer correspondence, invoices,
and so on. Efforts  to obtain private records can establish initial contacts with private
individuals and  corporate personnel, some  of whom may be good prospects for personal
interviews.
PROCEDURE
     Initial Information
     Needs

     o     Background
           Information

     o     Possible Sources
Before attempting to obtain PRP files, the researcher
should:

     o    Review site information from agency files
          and staff.

     o    List possible sources of private site files.
          These sources  may be identified through
          agency file  reviews or interviews with
          government officials.  Another source is
          CERCLA 104(e)/RCRA 3007 letter responses
          (see Section 3.1.2).
     Process (Site File
     Retrieval)

     o     Obtain
           Authorization
           Prior to
           Contacting
           Source

     o     Obtain
           Information on
           Other Sources

     o     Arrange to
           Review Files
PRP file retrieval and review processes are listed
below.

PRP File Retrieval

     o    If a contractor is conducting the research,
          first obtain EPA  authorization to contact
          private parties who may have relevant
          documents, and to review PRP records.

     o    Contact parties with files by telephone or
          letter as directed  by EPA.

     o    Identify yourself and your organization;
          fully explain the  purpose and scope of the
          EPA investigation.

     o    Request information pertaining to:

               History of site operations
                                         60

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                                             Potential owners, operators,
                                             generators, and  transporters

                                             Needs consistent with EPA strategy

                                        Identify other knowledgeable individuals or
                                        sources of records.

                                        Arrange to review and copy the PRP
                                        records. Identify  the following:

                                             A place  to review  records

                                             The volume of records

                                             Availability  of photocopying
                                             equipment

                                        If original documents are taken from the
                                        PRP  for copying purposes, follow proper
                                        chain-of-custody procedures
Process (Site File
Review)

o    Review Records

o    Summarize
     Results
PRP File Review

     o
                                   o

                                   o
Review the records.  Appendix D lists the
types of documents that may  be useful.
Documents of interest include those that:

     Identify PRPs

     Provide evidence that a  PRP was
     involved with a site

     List types and quantities of  waste
     disposed of at the site

     Identify other persons or agencies
     that may have knowledge of site
     activities

Document all sources reviewed.

Obtain permission  to photocopy relevant
material.

Summarize the results.
                                   61

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PROBLEMS/RESOLUTIONS
The volume of documents may be large.
This situation may present difficulties  with
respect to cost, time, and space
constraints.

     To decrease costs, review records
     prior to  copying to eliminate
     duplicate or irrelevant  documents.

     To save  time, copy records with a
     rental copier or use temporary help.

     To save  space, microfilm documents
     and produce hard copies from the
     microfilm only when necessary.

Documents from the waste disposal site
may be contaminated.

     Before reviewing potentially
     contaminated documents, analyze  a
     representative sample of the
     documents.

     Develop a safety plan before
     initiating work with contaminated
     documents.

Site owners or operators may refuse access
to site records.

     Contact  the EPA Regional Counsel for
     guidance and assistance.
                                                                                         4
                                        62

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                    3.2.5   PRIVATE CITIZEN/PRP INTERVIEWS
OBJECTIVE

Interviewing private citizens and PRPs may be an effective means of gathering
information on site operations, site history, PRPs, or other private parties who may
possess relevant documents or information. Private  citizens, especially persons living
near sites, often have relevant information concerning events at the site.  In addition,
PRPs are often familiar with past site activities.  Samples from PRP search reports that
include interviews are presented in Appendix I, Examples 1  and 2.  Example 9 presents
another method of summarizing  interviews in a report. These examples also show the
types of information that can be collected during interviews.
PROCEDURES
     Initial Information
     Needs

     o    Background
          Information

     o    Names of Private
          Citizens and
          PRPs to
          Interview
Before conducting interviews, the researcher will
need to:

     o    Review background site information from
          all agency sources.

     o    Obtain names of private citizens and PRPs
          who may have useful information regarding
          the site.

     o    If  a contractor is conducting the research,
          the contractor will need EPA authorization
          prior to contacting and interviewing
          private citizens and PRPs.

     o    Determine whether a private investigator
          should  perform the interviews  (for
          example, an  interviewee may have past
          criminal associations or may be in hiding).
     Process (Scheduling
     Interviews)

     o    Prioritize
          Interviews

     o    Contact
          Interviewees

     o    Determine When
          and How
          Interviews Will
          Be Conducted
The process of interviewing private citizens and
PRPs can be divided into two parts:  scheduling
interviews and performing  interviews.

Scheduling Interviews

     o    Order potential interviewees (if many)
          according to association, geographic
          location,  potential amount of information,
          and so on.

     o    Decide whether it is desirable to
          tape-record the planned interview.

               If it is, obtain advance approval from
               EPA.
                                        63

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                                             Be certain that tape-recorded
                                             interviews are conducted in
                                             compliance with  applicable laws.

                                        Contact the private citizens and PRPs.  Be
                                        prepared for possible negative reactions,
                                        depending on the individual's relationship
                                        to the site.

                                        If a contractor is conducting  the
                                        interview, identify yourself as an EPA
                                        contractor.

                                             Indicate that private citizen or PRP
                                             statements will be provided by the
                                             contractor to EPA only.

                                             Provide the  name and telephone
                                             number of the EPA primary contact if
                                             the interviewee wants verification.

                                        Decide whether the interview should be
                                        conducted by telephone or in person.  Base
                                        the decision on time, scheduling, travel,
                                        and interviewee preferences.
                                                     i
Process (Performing
Interviews)

o    Prepare
     Questions

o    Conduct
     Interviews

o    Document and
     Record
     Interviews
Performing Interviews
          Prepare specific interview questions
          beforehand to ensure  that all topics
          consistent with the EPA/contractor
          strategy are covered.

          Have an EPA attorney at the interview if
          the PRP's  attorney is  present.

          Have the interviewee  answer general
          questions first, such as explaining
          recordkeeping procedures.  Then ask
          specific questions on key areas of interest
          based on the background information.  The
          general types of information to obtain are
          listed below and in Section 3.1.4.  An
          example of an interview form is in
          Appendix E.

               Activities at the site before, during,
               and after the site's suspected use for
               waste disposal

               Site owner and operator history

               Waste disposal practices
€
                                                                                     4
                                    64

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                                                  Enforcement actions relating to the
                                                  site

                                                  PRPs associated with the site
                                                  (owners, operators, generators,
                                                  transporters)

                                                  Administrative or legal actions
                                                  involving  the site (lawsuits, license or
                                                  permit violations, cleanup orders)

                                                  Available  documents

                                                  Other people or organizations
                                                  knowledgeable  of the site

                                             Conduct the interviews.  Whenever
                                             possible, have two persons  present at the
                                             interview.

                                             Determine interviewee's association  with
                                             the site and the basis of  his knowledge
                                             (first-hand information or eye witness vs.
                                             rumored information).

                                             Determine whether a transcript  (if  it was
                                             tape-recorded)  or a written report of the
                                             interviews is needed.

                                                  Select a transcribing service if
                                                  transcripts are  desired.

                                                  Include the interview record in the
                                                  report.
PROBLEMS/RESOLUTIONS
Private citizens and PRPs may ask that
their attorneys handle any interview
requests or that their  attorneys be present
during the interview.

     Agree to this arrangement; however,
     if a contractor is conducting the
     interview, notify EPA of the
     situation.

The interviewee  has a large amount of
information, and  the  interview is being
conducted by telephone.

     Ask the interviewee  if the telephone
     conversation can be tape-recorded.
     Explain to the interviewee that this
     will speed up the interviewing process
     and will  ensure  that  the  answers are
                                         65

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         properly recorded.  If the interviewee
         agrees, the telephone conversation
         can be taped on a recorder with a
         beep tone  warning every 15 seconds.
         (State laws pertaining to telephone
         conversation recording should be also
         reviewed.)  Be aware that this
         method may cause some interviewees
         to  be  reluctant about answering
         questions.

         Also,  be aware that several problems
         may arise  when obtaining transcripts
         of  tape-recorded interviews.
         Transcripts are expensive (it can
         require 10 minutes  to transcribe one
         minute of an interview).  An inter-
         viewer must proofread the
         transcription and check it against the
         recording  to ensure accuracy.

    The  interviewer needs  to improve his
    interviewing techniques.
         References are available at public
         libraries that provide advice on
         conducting successful interviews.  The
         references may be written for
         applications other than obtaining
         historical information  about  a site,
         but the basic techniques can  be used
         during a PRP search.  Examples of
         such references are:

         Donaghy, William C, 1984; The
         Interview:  Skills and Applications.
         Scott, Foresman and Company,
         Glenview, Illinois.

         Garrett,  Annette, 1982; Interviewing,
         Its Principles and Methods.  Family
         Service Association of America, New
         York.

         Royal, Robert F. and Steven  R.
         Schutt, 1976; The Gentle Art of
         Interviewing and Interrogation.
         Prentice-Hall, Inc., Englewood Cliff,
         New Jersey.
66

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     It is difficult to establish the accuracy and
     reliability of personal interviews.

          Attempt to obtain information from
          more than one source.

          Carefully characterize the
          backgrounds of the persons
          interviewed.

     An interviewee requests anonymity.

          Comply with this request; check other
          sources to confirm information
          provided during the interview.

     An interviewee is uncooperative.

          Consider hiring a private investigator
          who is skilled in interview  techniques
          to conduct the interview.
67

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                        3.2.6    PRIVATE INVESTIGATIONS
OBJECTIVE

Private investigators (PI) are generally hired to locate PRPs or to obtain financial
information about PRPs. Pis are used in situations that are potentially dangerous or
when it is more efficient or economical for a PI to conduct the research than the
primary researcher.  The use of Pis may be more efficient or  economical because they
are located in and are familiar with the local community.  After locating a PRP, EPA or
the contractor, not the PI, should contact the PRP. PI reports should provide the
research findings (addresses, assets) and the basis for the information provided.
                                                                                        C
PROCEDURES
     Initial Information
     Needs

     o    Determination
          That a PI is
          Needed

     o    Background
          Information
                                  Determine whether a PI is needed.  A PI
                                  may be needed if the researcher:

                                       Cannot locate a principal PRP or
                                       witness

                                       Believes that a PRP  is concealing
                                       assets

                                       Has identified a potentially dangerous
                                       situation (armed PRPs, organized
                                       crime)

                                  Obtain background information from
                                  previously researched avenues.
                                                                                         4
     Process

     o
Determine
Conditions  of
Hiring a PI

Identify Possible
Pis

Select Pis
If a PI is needed, the contractor should
contact EPA to:

     Determine activities the PI will be
     asked to perform.

     Confirm necessary information to be
     released to the PI.

     Obtain instructions for the PI,
     including:

          Whom the PI  can contact
          Information that can be released
               to those contacted

Identify Pis near the suspected location of
the PRP.  Obtain suggestions from:

     State environmental enforcement
     authorities
                                        68

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         Local police or sheriff

    Select a PI.  This selection is based on
    information obtained by:

         Checking with the Better Business
         Bureau, Chamber of Commerce, and
         other informed services

         Contacting potential Pis directly and
         determining:

              How long they have been in
                    business
              Whether they are former police
                    officers
              Whether they have experience
                   with environmental cases
              Whether they have experience
                   working for government
                   agencies
              Whether they are insured  or
                   bonded
              Whether any suits have been
                   filed against them for
                   breach of privacy or  other
                   such actions
              Association  memberships
              References

         Contacting references

    If a contractor is the researcher, clear the
    selection with EPA.

    Contact the PI.

         Stress need for confidentiality and
         lawful methods for gathering
         information.

         Define research parameters  and
         methodologies, as necessary.

         Establish reporting methods
         (deliverables should  include results,
         all accessed information sources,
         procedures,  and hours spent on the
         project).

    Develop and have the PI sign a
    confidentiality agreement with EPA.
69

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PROBLEMS/RESOLUTIONS
Since the PRP researcher is unlikely to
have prior experience with the particular
PI, it is often difficult to  assure the
quality of the investigative work.

     Check references closely.

     Be specific about the limits of
     information being sought.

     Require frequent written status
     reports.

The  PI or contractor obtains information
indicating that the PRP has been involved
in criminal actions within the last six
months.

     Inform the EPA primary contact of
     the situation.  Arrangements should
     be made to contact the EPA Criminal
     Investigations  Unit or the FBI.
                                         70

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                3.2.7   SITE ENFORCEMENT TRACKING SYSTEMS
OBJECTIVE

The objective of this task is to obtain information about certain PRPs through the Site
Enforcement Tracking Systems (SETS).  SETS is a database maintained by EPA's Office
of Waste Programs Enforcement  (OWPE) that indicates whether a party has been sent a
notice letter.  OWPE updates SETS with information it obtains from the regions.  When
the regions issue notice letters, copies are submitted to EPA headquarters. OWPE uses
these letters to update SETS.
PROCEDURE
     Initial Information
     Needs

     o    Names of PRPs
                        Before SETS can be accessed, the researcher must
                        identify the complete names of the identified PRPs.
     Process

     o
Obtain Access to
SETS
     o    Submit List of
          PRPs

     o    Obtain PRP
          Information
If a PRP has been sent a notice letter, information
about the PRP may be obtained by completing the
following steps:

     o    Obtain access to SETS through NEIC or
          OWPE.  (EPA anticipates that the regions
          will have access to SETS beginning
          sometime in fiscal year 1987.)

     o    Relay a list of PRPs to SETS to determine
          whether  any have been sent letters.

     o    Obtain information on PRPs who have been
          sent notice letters. Information may
          include:

              Address

              Site information

              Site contacts (EPA headquarters, EPA
              regional office, Department of Justice
              (DOJ), U.S. Attorney, and state
              personnel)

     o   Contact the EPA regional office contact, if
         identified, to obtain additional information
         about the PRPs.
PROBLEMS/RESOLUTIONS
                        No problems have been identified in performing this
                        task.
                                       71

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                              3.2.8   SITE SAMPLING
OBJECTIVE

The objective of site sampling is to connect a specific, identified waste type with a PRP
through chemical analysis of samples collected at the site.  This task is a routine part of
site investigations (SI) and remedial investigations (RI).  The EPA primary contact for
the PRP search should coordinate with EPA personnel responsible for  the SI and RI to
ensure that samples are collected efficiently.  The EPA primary contact should also make
sure  a "site access" agreement between the site owner and EPA exists prior to doing any
work on the site.
PROCEDURE
     Initial Information
     Needs
     o    SI or RI Status
     o    Site Access
          Agreement
This task is a routine part of Sis and RIs. To
eliminate redundancy, the EPA primary contact
should determine if an SI or RI has been or  will be
conducted.  If a  contractor  is conducting the
sampling, the coordination  with other agency
personnel should be conducted through the EPA
primary contact, unless directed otherwise.
Coordinating the PRP search with  an SI or RI will
affect the contractor's scope of work, level of
effort, and schedule.

     o    If an  SI or RI has been  conducted:

               Obtain and review the information
               already collected.

               Determine if additional data is needed
               from site sampling; if so, conduct the
               sampling as described in the Process
               section.

     o    If an  SI or RI is underway, planned, or
          anticipated:

               Contact the EPA personnel
               responsible for the SI or RI to
               discuss:

                    Data to be collected
                    Sampling schedule
                    Modification  of sampling plan to
                         include  PRP search needs
                    PRP researcher's role in the SI
                         or RI
                                                                                        i
                                                                                         t
                                         72

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Process
     Obtain
     Background
     Information

     Develop a
     Sampling Plan

     Develop a
     Quality
     Assurance
     Project Plan

     Conduct
     Sampling
     If the PRP researcher is to lead the
     site sampling, follow the process
     described below with appropriate
     modifications to satisfy the SI or RI.

If an SI or RI has not been conducted and
is not anticipated, follow the process
described below to conduct the sampling.

Prior to doing any work on the site, the
investigator must obtain "site access"
agreement from the site owner.

The file review should provide necessary
information for planning the sampling
activities. The information includes:

     Types of wastes known or suspected
     at the site

     Media involved (soil, drums, ground
     water)

     Compounds and concentration levels

     Safety considerations

Review applicable sampling procedures
detailed in "SW-846 Physical/Chemical
Methods," Office of Solid  Waste.

Develop a sampling plan that includes a
safety plan.

Prepare an EPA-approved  Quality
Assurance Project Plan (details in "Interim
Guidelines and Specifications for Preparing
Quality Assurance Project Plans," Office
of Emergency and Remedial Response).

Coordinate sampling with  the on-scene
coordinator (OSC) if remedial  work is
being undertaken or if a removal action is
planned or underway. Sampling performed
under OSC's direction, if complete and
accurate, may preclude the need for
sampling by the PRP researcher.

Coordinate activities with  the assigned
analytical laboratory to ensure that sample
integrity is not compromised.
                                   73

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                                             Follow the RCRA  Inspection Manual for
                                             specific approaches to sampling drums,
                                             tanks, waste piles,  impoundments, and
                                             other disposal  areas.

                                             Employ strict chain-of-custody procedures
                                             to ensure the validity of sample results
                                             (details in "National Enforcement
                                             Investigations  Center Policies  and
                                             Procedures Manual," U.S. EPA, 1981).
PROBLEMS/RESOLUTIONS
Identification of PRPs from site sampling
results is not complete.

     Characterizing the waste at the site
     is only half the effort required to
     establish evidentiary data that may
     implicate a PRP.  The remaining
     effort entails associating the  specific
     waste to drum markings, operating
     log entries, and other generator,
     transporter, owner, or operator
     information.

The owner or operator of the site  may
refuse the contractor access to site.

     Notify  the EPA  primary contact  and
     request assistance in obtaining site
     access.
                                         74

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                           3.2.9   INDUSTRIAL SURVEY
OBJECTIVE

The objective of an industrial survey is to determine parties who may have contributed
to the site contamination.  This is accomplished through surveying local businesses and
reviewing various industrial manuals and directories.  This task is particularly useful
when  little information is available on the site from documents, interviews, and other
usual  sources, or when the site is in an area where neighboring facilities may have
contributed  to the contamination. Example 1  in Appendix I, Sample Reports, identifies
unconfirmed PRPs based on an industrial survey.
PROCEDURES
     Process
          Review and
          Contact Local
          Information
          Sources

          Interview
          Persons with
          Knowledge of
          the Site

          Obtain Detailed
          Information on
          Local Industries
The following steps outline the process for
conducting an industrial survey.  A sample form that
may assist in conducting these surveys is provided in
Appendix E.

     o    Review local business directories and
          consult local offices to obtain information
          on industries in the area.

               Chamber of Commerce

               Planning department

               Office of Solid Waste

               Better  Business Bureau

               Business or industrial directories

               Tax or property assessment office

               Telephone directories/yellow pages

               Area visit/windshield survey

    o    Interview ex-employees, neighbors,
          citizens' groups, and officials with site
          knowledge (see Section 3.2.5).

    o    Determine the type  of business each
          company is engaged in and its industrial
          classification.  Sources  of information
          include:

               Moody's Industrial Manual

               Standard & Poor's Corporation
               Descriptions
                                        75

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                                                  Thomas' Register

                                                  Local industrial directories

                                                  Interviews (see Section 3.2.5)

                                             Compile an inventory of potential
                                             industries that may have contributed to
                                             the contamination at the site.

                                             Complete the industrial survey list by
                                             obtaining (at a minimum) each industry's
                                             name, address, facility contact, and its
                                             Standard Industrial Classification (SIC)
                                             code, which classifies the major activity of
                                             the industry.
                                           i
PROBLEMS/RESOLUTIONS
If the CERCLA site is located in a large
metropolitan area, then hundreds of
potential industries could be PRPs.

     It may be necessary to establish
     geographical limits for the survey.

Current directories may not be applicable
for an old disposal site.

     Consult libraries to obtain telephone
     books and directories for the
     applicable time  period.
                                         76

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                     3.2.10    PROCESS CHEMISTRY ANALYSIS
OBJECTIVE

The objective of a process chemistry analysis is to determine the types of wastes likely
to be generated by area industries that may have used the site for disposal.  This task is
particularly useful when little documentation exists to indicate who disposed of wastes at
the site.  This task is usually only conducted when the site had a history of receiving
wastes  from off-site generators.  A good understanding of industrial technology is useful
in the process chemistry analysis. Local industries are grouped according to the products
and manufacturing processes from which characteristic waste streams are normally
generated.  These wastes are subsequently compared to contaminants found at the site.
Once the investigator establishes a link between an industry and wastes disposed of at
the site, then additional data gathering efforts can be initiated to further define an
identified company's specific waste handling activities.
PROCEDURES
     Process
          Identify Local
          Industries

          Determine Waste
          Types

          Compare
          Industrial Wastes
          and Disposed
          Wastes
Consult the industrial survey list prepared
for the site, if available (see Section
3.2.9).

Categorize each of the firms according to
their SIC codes.  Identify  products and
manufacturing processes for each category.
Company-specific information can also be
included if it is available from sources
such as an industrial survey or CERCLA
104(c) letters.

Determine the types of waste generated by
each industry. Available data sources
include:

     EPA -- effluent limitations guidelines,
     available through the Office of Water
     and Waste Management, list pollutant
     parameters for various industry
     categories and sometimes identify
     other waste streams not falling under
     the wastewater control system;  other
     sources include RCRA studies and
     listing or delisting information.

     Raw material  manufacturers and
     suppliers -- these companies can
     provide extensive information on the
     types of raw materials used by many
     types of industries.
                                         77

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                                                 Trade associations -- trade
                                                 associations might provide information
                                                 on products,, processes, and wastes
                                                 that are used or generated by a
                                                 specific industry.

                                                 Literature studies — other federal
                                                 and  state studies, the Kirk-Othmer
                                                 Encyclopedia of Chemical Technology,
                                                 and  trade publications can provide
                                                 detailed information on  many  aspects
                                                 of a particular industry.

                                             Maintain  a  parallel list of identified
                                             contaminants found at the site (see
                                             Section 3.2.1 1).

                                             Compare  types of wastes  generated  by the
                                             various industries with the list of
                                             contaminants found at  the site and
                                             establish  causal relationships.
                                         i
PROBLEMS/RESOLUTIONS
Not all contaminants found at the site
have been linked to an area industry.

     Transporters may cover areas beyond
     the geographical limits established by
     the study.  Contact  local solid waste
     regulatory  offices to determine which
     haulers work in the area and whether
     they service any outlying industries.

Some contaminants, such as solvents, are
used by many industries; thus, many
potential generators may be assigned to
one waste type.

     All industries must be regarded as
     potential sources until further
     information can be acquired that will
     specifically exclude them from
     consideration. Consider conducting
     additional  research through such
     activities as interviews (see Section
     3.2.5).

Information obtained from SIC codes is not
company-specific.

     Additional research can be conducted
     to obtain information about the waste
     streams generated by  specific
     companies.
                                         78

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                       3.2.11    WASTE STREAM INVENTORY
OBJECTIVE

The main objective of this task is to compile an accurate inventory of wastes that were
stored or disposed of at a site by reviewing all  waste stream records, operating  logbooks,
and analytical reports. This task is required  if the researcher  needs to determine the
types and quantities of waste contributed  by  each PRP. Knowing  the types of wastes
disposed of at the site is necessary to identify a relationship between  the site and PRPs.
When a  complete  inventory of wastes is developed, it can be used in conjunction with
process descriptions and industry surveys (see Section 3.2.9) to  identify parties that may
have been involved in disposal activities at the site.
PROCEDURE
     Initial Information
     Needs

     o    Location

     o    Contamination
     Process

     o
Identify All
Available
Documents

Inventory Wastes
                         Before initiating a waste stream inventory, the
                         researcher must know:

                              o    The locations of detected contamination.

                              o    The types of contamination detected.
The inventory process includes the following steps:

     o    Identify all available documents (daily
          operating  logbooks, inspection reports,
          ledgers, disbursements, invoices,
          consignments, and laboratory analysis
          records).

     o    Identify the document originator or author,
          document  location, and range of years or
          key dates  covered by the records.

     o    Identify applicable information in the
          documents (wastes involved, disposal
          prices, volume of waste disposed,
          contaminant concentrations, and
          contractual arrangements).

     o    Establish a database when information is
          voluminous or is from  several different
          sources. Information can be entered on a
          personal computer spreadsheet that allows
          data to be sorted in various ways (see
          Sections 3.2.13 and 3.2.14).

     o    Identify PRPs by comparing the waste
          stream inventory with  process descriptions
          and industrial surveys  (see Section 3.2.9).
                                        79

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PROBLEMS/RESOLUTIONS
Evidence about a specified party  is found
on a soiled or torn page of a document.
The condition of  the document or evidence
can compromise its validity.

     Illegible handwritten notes,
     incomplete  records, and  torn or soiled
     document pages will  diminish  the
     reliability of the findings.  Be careful
     to support all findings with
     credible or clear data before listing
     companies or individuals as  PRPs.
                                         80

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               3.2.12   CORRESPONDENCE TRACKING DATABASES
OBJECTIVE

The objective of this task is to track the mailing of and responses to notice letters and
information requests sent to PRPs.  This task often requires using a computerized
database because of the large number of PRPs contacted.  Computer printouts can be
used to summarize the PRP responses.  See Section 3.1.6 for procedures on maintaining a
PRP address list.
PROCEDURES
     Initial Information
     Needs

     o    Information to
          Track

     o    PRP Names and
          Addresses
     Process

     o    Design Database

     o    Update Name and
          Address List
Before beginning the tracking procedure, the
researcher should obtain:

     o    The type of information to be tracked,
          such as who was sent a letter or request,
          whether they receive it, and whether they
          responded.

     o    Names and addresses of contacts within
          each PRP's company or the name and
          address of the company's registered agent.

     o    Design a database system which  will
          incorporate the  required information.

     o    Determine the universe of PRPs.

     o    Determine how  the documents and other
          information will be received and entered
          into the  database system.

     o    Determine the types of printouts and
          summary reports to be extracted from the
          database.

     o    Update the name and address list as new
          information becomes available (see Section
          3.1.6).
PROBLMES/RESOLUTIONS
          It is difficult to track necessary
          information.
                                                 Do not "clutter" the database
                                                 printouts with any information not
                                                 required.
                                        81

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    Inaccurate data were entered.

         As with all database work,  use a
         rigorous quality assurance program by
         creating printouts that will display all
         of the latest edits and entries for
         quality control review.
82

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                         3.2.13   INVENTORY DATABASES
OBJECTIVE

The objective of this task is to develop a computer-based information management system
for organizing and controlling case document files and for summarizing case-specific
information contained in the documents.  The system should provide three litigation
support services:  (1) an  efficient way of locating and retrieving documents by keyword,
subject, author, or date;  (2) a document control system to assure that documents are not
lost or misplaced; and (3) a means for assuring an orderly and timely response to
discovery orders and to  voluntary document exchanges.
PROCEDURE
     Process
          Obtain
          Documents

          Create Document
          Coding Forms

          Develop Key
          Words

          Create Inventory
          Database
o    Locate all relevant documents.

o    Determine how the data are to be used
     and what information needs to be
     extracted. The ultimate needs of all users
     must be reflected in the system, and the
     system must be able to handle the ultimate
     size of the database.

o    If a contractor is conducting  the search,
     meet with the EPA primary contact and
     others who will be using the system
     regarding:

          Type of software available

          Type of hardware available

          Type of programming

          Product (contractor-generated reports
          or system  for EPA's use)

o    Screen  documents for  relevance
     (contractors should work with EPA to
     determine the criteria).

o    Identify duplicate documents. Eliminate
     the documents or enter them into the
     system  as duplicates.

o    Number the documents (use a  Bates stamp
     or microfilm frame number).

o    Create document coding forms.
                                        83

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         Possible field definitions include:

              Document location
              Document number
              Document type
              Originator
              Author(s)
              Origination date
              Title
              Subject(s) or key words
              Addressee
              Number of pages
              Document condition
              Method obtained
              Document source (EPA, state,
                   PRP)
              Recipients
              Attachments
              Miscellaneous

    Develop key words to reflect case issues,
    relevant technical or scientific information,
    or discovery issues.

    Create the inventory database using
    software such as dBASE III  or LOTUS 1-2-
    3, or mainframe hardware and software
    systems if necessary. (Two systems
    already developed and  in use are (1) the
    Superfund Litigation System (SLS) in
    Region 2 and (2) the PRPBASE System  in
    Region 5.)

         Develop a coding  manual

         Train coding personnel

         Extract data

         Code the information for generators,
         document  types, and  so on

         Conduct quality check

         Enter data

         Conduct edit runs

         Prepare pilot printouts

         Prepare draft and final reports

         Conduct various sorting and database
         manipulations
84

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PROBLEMS/RESOLUTIONS
The inventory database was begun before
all documents were available and without
input  from all who will use the database.
Subsequent changes in the established
fields and procedures were required.

     Obtain as many documents as possible
     before beginning, and obtain input
     from any persons who may use  the
     database.
                                       85

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                      3.2.14    TRANSACTIONAL DATABASES
OBJECTIVE

The objective of this task is to develop a transactional database for storing information
contained in transactional documents. The nature of the waste disposal industry often
requires that several transactions be made before final disposal of a hazardous waste.
Transactions often involve generators conveying hazardous waste  to haulers, and haulers
conveying hazardous waste to disposers.  Records of these transactions, such as bills of
lading or purchase orders, may contain information regarding  the type, volume, and
disposal method of the waste.  Summaries of the database information can display, where
available from  the documentation, evidentiary information on  the types of wastes disposed
of, the generators and haulers of the hazardous materials, the total volume of each waste
type, the quantity of each waste type  by  generator or  hauler, and  the ranking of each
generator or hauler according to total quantity of hazardous waste disposed of.  Example
7 in Appendix I, Sample  Reports, is a report explaining  the preparation and results of a
transactional database.
PROCEDURES
     Initial Information
     Needs
                                        Determine how the database is to be used and
          AH Relevant
          Documents
          Requirements
Locate all relevant documents.
what information needs to be extracted from
the transactional records.  The needs of all
                                        users must be reflected in the system.
          Database
€
If a contractor is conducting the search, meet
with the  EPA primary contact and others who
will be using the system regarding:

     Type of software  available

     Type of hardware available

     Level of programming

     Product (contractor-generated reports or
     system for EPA's use)

     Data quality criteria and quality control
     procedures
                                         86

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Process
     Number
     Documents

     Create Document
     Coding Forms

     Select  Key Words

     Organize
     Documents

     Create
     Transactional
     Database
o    Screen documents for relevance.

o    Identify duplicate documents. Either eliminate
     duplicate documents or enter them into the
     system as duplicates.

o    Number documents using a Bates stamp,
     microfilm frame number, or other system.

o    Create document coding forms.

o    Define the data fields.  Possible field definitions
     include:

          Document number

          Generator

          Hauler

          Waste type

          Waste quantity

          Date

          Site

          Attachments

          Miscellaneous

o    Select key words to reflect case  issues,
     relevant technical  or scientific information, or
     discovery issues.

o    Sort documents into folders according to
     generator.

o    Sort files chronologically within a folder to
     identify all documents that pertain to one waste
     shipment.

o    Place non-waste documents in the back of
     folders (these will not be included in the
     database).

o    Create transactional packets (each  shipment
     constitutes a  packet; a packet  may consist of
     several waste types).

o    Create a transactional record for each
     waste in a  packet.
                                    87

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                                 o    Develop criteria for evidence of shipment
                                      (invoices and other supporting documents
                                      with waste manifests).  Contractors should
                                      confirm with the EPA  primary contact the
                                      approaches to be used in dealing with
                                      discrepancies and gaps in the documents.

                                 o    Create the transactional database using software
                                      such as dBASE III or LOTUS 1-2-3, or
                                      mainframe hardware and software systems  if
                                      necessary.  (Two systems already developed and
                                      in use are (1) the Superfund Litigation System
                                      (SLS) in Region 2  and  (2) the PRPBASE System
                                      in Region 5.)

                                           Develop coding manual

                                           Train coding personnel

                                           Extract data

                                           Complete  document coding forms

                                           Conduct quality check

                                           Enter data

                                           Conduct edit runs

                                           Prepare pilot printouts

                                           Prepare draft and final reports

                                           Conduct various sorting and database
                                           manipulations

                                           Prepare user manuals  and technical
                                           documentations

                                           State assumptions
PROBLEMS/RESOLUTIONS        o    Several factors increase the time and cost of
                                       developing a database.  These factors include
                                       designing the database before all documents are
                                       available, not getting input from all users,
                                       adding fields, and changing procedures after the
                                       system is in place.

                                            These problems should be  minimized
                                            through careful planning during the
                                            initial design of the database.
                                       88

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Inaccurate data are entered.

     Institute a rigorous quality control (QC)
     program using printouts of the latest
     edits and entries for QC review.  It is
     more efficient, from both a scheduling and
     budgeting aspect, to institute the QC
     procedures at the beginning of a  project
     than to correct inaccurate data and rerun
     programs at a later date.

Illegible documents or entries may be
encountered; waste units may not be included
with the quantities.

     Obtain other documents for the same
     shipment that provide  this information.

     Request  this specific information from
     the PRP.
 89

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                          3.2.15   COMPLIANCE HISTORY
OBJECTIVE

This task involves reviewing records and information to identify violations of hazardous
waste and other environmental laws and regulations.  A profile can then be prepared of
the PRP's compliance history.  This research also may yield the names of individuals in
state agencies and Attorney Generals' offices who can provide facts supporting a party's
identification as a PRP.
PROCEDURE
     Initial Information
     Needs

     o    Scope of
          Research
     Process

     o
Obtain
Background
Information

Develop
Compliance
History
                                   Identify the particular sites or PRPs to
                                   research and the scope of the research to
                                   be conducted.
The following steps are required to develop a
compliance history:

     o    Obtain records and information from public
          and private  sources (see Sections 3.1.1,
          3.1.5, and 3.2.4).  Private sources may have
          records not available through other
          sources, such as the operator's meeting
          minutes, operator's logbooks, and internal
          memoranda.

     o    Review  and analyze the information
          concerning the PRP's method of operation
          and compliance with applicable federal,
          state, and local laws and regulations.
          Useful records may include:

               Inspection reports (such as RCRA,
               TSCA,  NPDES, CAA, CWA, FIFRA,
               SDWA, and OSHA  compliance
               inspections)

               Violation notices

               Legal actions for violation of laws
               and regulations

               Correspondence with regulatory
               agencies

     o    Develop information through alternative
          methods such as interviewing former
          employees and interviewing residents living
          nearby (see Section 3.2.5).
                                        91

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                                            Develop a profile of the operator's
                                            compliance with relevant environmental
                                            requirements (regulations and  permits).

                                            Determine, if possible, whether the
                                            compliance history affects the operator's
                                            identification as a PRP.
PROBLEMS/RESOLUTIONS
A lengthy violation history found in
documents might have little to do with
relevant CERCLA site activity.  For
example, notices of  violations for blowing
litter are not relevant to ground-water
contamination at the site.

     Go through all documents  to analyze
     the information.

     Briefly summarize non-CERCLA
     violations such as blowing litter.
                                                                                       C
                                        92

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                         3.2.16    FINANCIAL ASSESSMENT
OBJECTIVE

The objective of a financial assessment is to obtain the necessary financial and economic
information and analyses to facilitate enforcement actions.  Results from financial
assessments can be used to project the capability of a PRP to address an environmental
problem, or a violator's ability to pay a penalty.  Knowing such information, EPA can
better formulate an appropriate negotiation and litigation strategy.  A financial
assessment should be conducted with an understanding of the EPA Superfund Settlement
Policy and EPA Civil Penalty Policy.  Typically, financial assessments are conducted to
determine the ability of PRPs to  respond to cleanup requests and to pay penalties.  Both
the EPA Superfund Settlement Policy and EPA Civil Penalty Policy contain provisions
regarding the ability to pay as an enforcement criteria.  The financial assessment goes
beyond  the financial status (see Section 3.1.3) by including an analysis of the information
collected.
PROCEDURE
     Process

     o
Gather Financial
Information

Research PRP's
Business

Formulate a
Baseline

Assess PRP's
Financial
Condition
The thrust of a financial assessment is to understand
the financial position of a company and to project
its changes under different scenarios. Financial
information may be very difficult to obtain if the
company is not publicly held.  The key steps in
conducting a financial assessment are listed below.

     o    Gather the firm's financial information.

               Three years of annual or, preferably,
               quarterly reports will form a strong
               basis for evaluating and projecting a
               PRP's financial position.  Types of
               information are:

                    Balance sheets
                    Income statements
                    Statements on uses and sources
                         of  funds

               Sources of information include:

                    Securities and  Exchange
                         Commission (publicly held
                         companies are required to
                         submit annual reports)
                    PRP (in consultation  with EPA)
                    Dun & Bradstreet business
                         surveys
                    State corporation or business
                         licenses and tax assessment
                         divisions
                    Clients and suppliers  of the firm
                    RCRA files, if they exist
                                        93

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    Understand the business of the PRP in
    terms of:

         Management

         Ownership

         Marketplace strategy

         Industry outlook

    Formulate the  baseline for the assessment
    (the PRP's financial performance without
    the environmental liability).

         Develop a pro forma balance sheet,
         income statement, and uses  and
         sources of funds for the appropriate
         period of time.

         Clearly define and report all
         assumptions.

         Produce key financial ratios for  the
         coming years, such as:

              Liquidity
              Asset  management
              Fund  management
              Debt management
              Profitability
              Market value

    Assess the impact of EPA enforcement
    actions.

         Charge the necessary environmental
         expenditure to the current assets
         account.

         Interpret the effects of these charges
         on the PRP's financial condition.

    Assess the PRP's financial condition
    relative to firms in a similar business.
    Compare key ratios  to ones found in
    national surveys under the same  Standard
    Industrial Classification (SIC) code.
94

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PROBLEMS/RESOLUTIONS
A PRP may enter bankruptcy proceedings
if forced to pay a penalty or compliance
cost.

     Conduct a bankruptcy analysis.

           Determine the PRP's liquidation
                value.
           Determine the likelihood of
               EPA asserting its claim in
               a  bankruptcy court.
           Appraise the PRP's assets and
               examine the seniority of
               the  outstanding liabilities.
                                        95

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                          3.2.17   GENERATOR RANKING
OBJECTIVE

The objective of this task is to rank generators by the type and amount of wastes
disposed of at a site. This is an  important element of EPA's CERCLA Settlement Policy,
which provides that the quantity and type of wastes  contributed to the site by various
PRPs can  be considered in evaluating settlement offers.  Moreover, EPA has committed to
releasing information about the volume and  nature of wastes to PRPs to facilitate
settlement discussions.  However, the accuracy of this ranking system depends on the
completeness of the records available.  EPA can release information on the volume and
nature of  wastes only to  the extent identified as being sent to the site. Example 8  in
Appendix I, Sample Reports,  includes three tables created  during the generator  ranking
task.
PROCEDURES
     Initial Information
     Needs

     o    Types and
          Quantities of
          Waste

     o    Transactional
          Database
                                  Obtain sufficient information on the types
                                  and quantities of waste disposed of at the
                                  site.

                                  Search for all available documents
                                  concerning types and quantities of waste
                                  disposed of by generator.

                                  Establish a transactional database (see
                                  Section 3.2.14).
     Process

     o
Select
Comparison Units

Rank Generators
Select appropriate comparison units.

     Choose the most appropriate unit of
     waste depending on the type of waste
     (volume versus  weight) and the type
     of information  available (weight
     versus dollars).

Determine whether weighting factors are
applicable and available. Examples of
situations where a weighting factor may be
appropriate include:

     When a small quantity  of one waste
     may be significantly more toxic than
     a large quantity of another waste.

     When a small quantity  may be highly
     mobile or persistent, thus resulting  in
     greater exposure.
                                         96

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                                                  When a small quantity may be more
                                                  expensive to clean up, dispose of, or
                                                  treat than  a larger waste quantity.

                                             Rank generators based on quantities of
                                             waste and weighting factors when
                                             appropriate.
PROBLEMS/RESOLUTIONS
Ranking is started (establishing fields and
procedures) before (1) entering all
information in the database, (2) obtaining
all comments and input from users, or (3)
considering all possible  uses of
information.

     Solicit input from all persons who
     may use the information.

     Consider all possible uses.

Many types of waste, including both
hazardous and non-hazardous, are listed in
the waste inventory.

     Consult the EPA primary contact to
     determine if the ranking should be
     based on all wastes, only hazardous
     wastes, or some combination
     identified by the primary contact.
                                        97

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                          3.2.18    PROPERTY APPRAISAL
OBJECTIVE

EPA may need to assess the monetary value of certain contaminated real property to
support remedial actions evaluated or undertaken in accordance with the National
Contingency Plan.  Contemplated remedial actions might include Fund-sponsored cleanup,
possibly including  purchasing land and relocating residents. Appraisals of the property
"as is" (before  remedial action) and "as modified" (after  remedial action) are often
required. Property appraisals can also be included during a PRP search if the researcher
is trying to determine the assets  of an identified PRP. Because professional real estate
appraisals may be  expensive, each appraisal should be specifically  authorized by the EPA
primary contact when a contractor is conducting the search. Alternatively, less costly
estimates of the "as is" property  value can sometimes be  developed  by those other than
professional real estate appraisers, as indicated  in Section 3.1.3, Financial Status.
PROCEDURES
     Initial Information
     Needs

     o    Authorization to
          Retain Appraiser

     o    Names of
          Government
          Personnel
          Involved With
          Case
Before proceeding with  the property appraisal, the
researcher needs to obtain the following:

     o    Specific authorization to retain a real
          estate appraiser to provide a property
          assessment.

     o    Names of  all  EPA and DOJ personnel who
          may be using the information obtained
          from the property appraisal.  Because
          appraisal assumptions affect the usefulness
          of the  value estimates, it is important for
          the researcher to  be aware of all
          assumptions involved.
      Process

     o    Develop
          Assumptions

     o    Retain  Appraiser

     o    Review
          Preliminary Draft
Each of the following steps should be completed to
provide a usable value estimate.

     o    Develop, with input  from EPA and DOJ
          staff, a complete set of assumptions to be
          applied when performing  the appraisal.
          The assumptions address  issues including,
          but not limited to:

               Date on which  the property's value is
               to be estimated
                                         98

-------
         "As is" and "as modified" property
         valuation

               Clear and complete descriptions
                    of the property
                    modifications
               Consideration of "highest and
                    best use" of modified
                    property (that is, its most
                    productive appropriate  use)

         Existence  or absence of fee simple
         title that is free and clear of all
         debts, liens, and encumbrances

         Existence  or absence of contamination

    Select  and retain a real  estate appraiser.

         Obtain recommendations for a real
         estate appraiser from:

               Chamber of Commerce
               Member listings of
                    appraiser associations
                    such as  American
                    Institute of Real Estate
                    Appraisers
               Long distance yellow  pages
                    information

         Contact several real estate appraisers.

               Describe the  planned  research
               Generally describe assumptions
               Obtain written cost estimates
               Obtain appraiser's
                    qualifications and
                    credentials
               Screen for conflicts of interest

         Select a real estate appraiser
         (contractors should clear the choice
         with EPA).

         Prepare a  contract that  includes a
         written  list of assumptions.

         Set a not-to-exceed ceiling  on costs
         unless first notified.
99

-------
                                            Contractors should maintain close and
                                            continuous contact with EPA and the real
                                            estate appraiser.

                                            Review the preliminary draft of the
                                            appraisal  to determine conformance with
                                            assumptions.

                                            Transmit  comments (contractor and EPA)
                                            to the appraiser prior to completion of the
                                            final appraisal.
PROBLEMS/RESOLUTIONS
A property appraisal may not be completed
in time for inclusion in PRP search report.

     Clearly explain scheduling
     requirements to the appraiser prior to
     signing a contract.  If the  time frame
     cannot be met, select another
     appraiser.

The extent of "coroparables" (such as
nearby, comparable property recently
subjected to value assessment) is often
learned after research is underway.

     Maintain close contact among all
     parties involved (EPA, appraiser,
     contractor) to define the comparable
     search area and to be aware of
     scheduling and budgetary  impacts.

Site access  is necessary to complete the
property appraisal.

     Contact the  EPA primary  contact to
     determine if site access is  really
     necessary. The Regional Counsel
     should be consulted before a
     determination is made. If access is
     required, EPA should contact the site
     owner and request written consent.
                                        100

-------
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-------
Appendix A
Glossary and Acronyms

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                                   APPENDIX A
                                    GLOSSARY
Administrative Order on Consent
An administrative order issued pursuant to
authorities provided under CERCLA or RCRA for
response actions. This is an administrative order
which is consented to by the recipient in writing.
Bates Stamp
Bill of Lading
CERCLA
A hand-held numbering machine that will stamp
consecutive numbers.  Useful when assigning
reference or index numbers to a set of documents.

A receipt issued by a carrier to a shipper listing
the goods received from the shipper for shipment.

The Comprehensive Environmental Response, Com-
pensation, and Liability Act (CERCLA), passed in
1980 and commonly known as "Superfund."  CERCLA
gives the federal government the power to  respond
to releases, or threatened releases, of any hazardous
substance into the  environment as well as to a
release of a pollutant  or contaminant that may
present an imminent and substantial danger to
public health or welfare. CERCLA established a
Hazardous  Response Superfund (formerly the
Hazardous  Substance Trust Fund),  available to
finance responses taken by the federal government.
Chain-of-Custody
Evidence of analytical data is related to samples
taken at particular locations and times.  In offering
real evidence, the offerer accounts for the custody
of the evidence from the time it is gathered until
the time that it is offered in evidence.  If this
custody "chain" is broken, the admissibility of the
evidence can be challenged.
                                       A - 1

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Civil Investigator
Cleanup
The Headquarter civil investigator is responsible for
planning the national strategy.  The  regional civil
investigators are responsible for planning regional
strategy that obtains the national goals and follows
the national strategy.

The elimination, reduction, or containment of
pollutants associated with a site in accordance with
the National Contingency Plan.
Conditional Sales Contract
A contract between buyer and seller, where the
seller reserves title to the property until the buyer
fully pays for the property.
dBASE III
Death Certificate

Declaration of Trust
An electronic relational database system for the
IBM and Mackintosh class of microcomputers sold
by Ashton Tate, Inc.  dBASE III stores a collection
of related information or data in a record.  A
record is similar to an index card.  A group of
records (index cards) makes up a database file.
Data from these files can be deleted or edited, or
new information can be  added.  Data from  the files
can  be sorted, manipulated mathematically, and
summarized in printed reports.  dBASE III offers
similar capabilities as LOTUS 1-2-3; however, dBASE
III has a more powerful  programming language  that
was designed for databases.

An official document evidencing that a person died.

A statement by the person named as owner  of land
on legal records that he  holds the land in trust for
the use of another person.
                                         A - 2

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Deed
A legal document which transfers a property.
Identifies property owner  and partial date of
ownership, and describes the property owned.
Easement
A right afforded a person or entity to make limited
use of  another's  real property. Another term for
easement is "right of way." Easements may identify
additional parties that had access to a site.
Expanded Site Investigation
Investigation of a site that requires field work
including sampling.  This  field work will provide
data in preparation for Superfund activities at the
site.
Fee Simple Title
Title to an estate of which the owner is entitled to
the entire property, with unconditional power of
disposition during his life, and descending to his
heirs and legal representatives upon his death.
Such estate is  unlimited as to duration, disposition,
and descendability.
Gate Logs
Logs maintained by a site operator at the entrance
to a site.  Information on the logs may have been
entered by a site employee or by truck drivers as
they entered the site.  Information may include
hauling company names, truck driver names, delivery
dates, waste type, and waste quantities.
Grant
A grant transfers land to someone other than the
person making the grant.  A grant may identify the
site's owner as of a certain date.
Hazard Ranking System
The method regulatory authorities use to set
priorities for response actions under CERCLA. The
Hazard Ranking System (HRS) ranks a site by means
of a mathematical rating scheme that combines
                                        A - 3

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                                   probability and magnitude (the potential of a release
                                   to cause hazardous situations and the severity or
                                   magnitude of these potential impacts).  Using the
                                   numerical scores from this scheme, EPA and the
                                   states list sites by priority and allocate resources
                                   for site investigation, enforcement, and cleanup.
                                   The HRS is most commonly referred to as the Mitre
                                   model after its developer, the Mitre Corporation.
                                   Sites receiving high HRS scores -- currently greater
                                   than 28.5 -- appear on the National Priorities List.
                                   (See Preliminary Assessment/Site Investigation.)
Hazardous Superfund Response
The Fund, formerly the Hazardous Substance
Response Trust Fund, largely financed by an
environmental tax on industry (i.e., chemicals,
petrochemicals, oil) that provides operating money
for government financed actions under CERCLA.
The Fund is a revolving fund in the sense that it
enables the government to take  action and then
seek reimbursement later, or to  clean up sites for
which  responsible parties with sufficient cleanup
funds cannot be found. Money recovered by
CERCLA  Section 107 is returned to the  Fund
rather  than the U.S. Treasury.
Land Trust
Lease
A method of holding real estate.  When a land trust
is used, the legal title to the land is listed as the
trustee on all the legal records. However, by use
of a trust agreement, the beneficiary of the trust
usually maintains management and control of the
real property.

A contract by which a landlord rents lands,
buildings, and so on to  a tenant for a specified
time. A lease may provide information on site
                                        A - 4

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Lien
operations and operators for various periods of time
in the site's history.

A legal claim on another's property as security for
the payment of a just debt.  A lien may identify
the site's owner and may give an indication of the
owner's financial status.
Lotus 1-2-3
An electronic spreadsheet for the IBM class of
microcomputers sold by Lotus Development
Corporation.  Lotus 1-2-3 stores information
electronically in columns and rows.  The information
in the columns and rows can be manipulated.  Text
can be sorted and numerical data added, subtracted,
and multiplied within seconds.  Data can be printed
in tables or graphs.  Lotus 1-2-3 offers similar
capabilities as dBASE III; however, Lotus 1-2-3's
principal application is  accounting models and its
programming language is not designed for large  and
complex transactional databases.
Mortgage
A security interest in land created by a written
instrument.  Mortgages are usually created to secure
payment of a debt.  A mortgage may identify  the
site's owner and may  give an indication of the
owner's financial status.
National Contingency Plan
A plan that provides for efficient, coordinated, and
effective response to discharges of oils and releases
of hazardous substances of the Comprehensive
Environmental Response Compensation and Liability
Act and the Clean Water Act.
National Priorities List
The National Priorities List (NPL) establishes
priorities for remedial response actions throughout


     A - 5

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Notice Letter
the country through government enforcement action
or cleanup (see Hazard Ranking System).

EPA's formal notice to PRPs that CERCLA-related
action is to be undertaken at a site for which those
PRPs are considered  responsible.  Notice letters are
generally sent at least 60 days prior to scheduled
obligation of funds for a remedial investigation/
feasibility study at a designated site.  The intent is
to give PRPs sufficient time to organize and to
contact  the government.
On-Scene Coordinator
An individual, designated within an EPA region, who
coordinates and directs Federal responses under
Subpart E and removals under Subpart F of the
NCP. The on-scene coordinator (OSC) is
responsible for developing contingency plans for
federal  response in the OSC's area.  In some
regions, the OSC has additional responsibilities
which include those defined under  Remedial Project
Manager.  (See Remedial Project Manager.)
Owner or Operator
". . . (i) In the case of a vessel, any person owning,
operating, or chartering by demise, such  vessel, (ii)
in the case of an onshore facility or an offshore
facility, any person owning or operating  such
facility, and (iii) in the case of any facility, title or
control of which was conveyed due to bankruptcy,
foreclosure, tax delinquency., abandonment, or
similar means to a unit of State or local
government, any person who owned, operated, or
otherwise controlled activities at such facility
immediately beforehand" (CERCLA; Title  1, Section
101(20)(a)).  Potentially responsible parties can
include both present and former owners  and
operators.

      A - 6

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Partial Release of Deed
of Trust  and Mortgage
Person
Potentially Responsible Parties
A release of specified parcels of land from mortgage
or trust.  A partial release is used when not all
land originally subject to mortgage or in trust is
released  from mortgage or trust.

An individual, trust,  firm, joint venture, corporation
(including a government corporation), partnership,
consortium, commercial entity, association, U.S.
government, state, municipality, commission, political
subdivision of a state, or any interstate body.

Those identified by EPA as potentially liable under
CERCLA for  cleanup costs.  PRPs may include
generators and other  persons who arranged for
disposal  or treatment, present or former owners or
operators of certain  facilities where hazardous
substances have been located or disposed of, as well
as those  who accepted hazardous substances and
transported them to certain facilities.
Preliminary Assessment/
Site Investigation
The preliminary assessment (PA) is the first step
taken after EPA or a state discovers a site. It
involves reviewing existing information and
assessing current site conditions to determine if a
potential threat to the public or the environment
exists. A PA usually involves a site visit. The
need for a site inspection (SI) is based on the
results of the PA.
                                    The purpose of a SI is to gather additional data
                                    sufficient to rank the site using the Hazard ranking
                                    System (HRS), and to aid in making judgements on
                                    what further actions are required at the site.
                                    Historically, an SI involves a visual inspection of  a
                                    site and usually  includes limited  sample collections.
                                         A - 7

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                                   A current initiative is underway to expand the
                                   scope of an SI to provide better support to the
                                   development of  the remedial investigation (RI) work
                                   plan and scope.  This expanded SI (ESI) would  also
                                   provide  better support for the MRS, NPL, and
                                   related program needs.
Primary Contact
The person at EPA who has primary responsibility
for a work assignment.  Each work assignment
issued to a contractor has an EPA primary contact.
The contractor is responsible to this contact for the
work assignment. All changes in the scope of work
and tasks to be conducted must be cleared with the
primary contact.  Direction from other EPA
personnel to the contractor must also be cleared
with the primary contact.
Proposed NPL Sites
Proposed NPL sites are sites which have Hazard
Ranking System scores above 28.5 and are under-
going public comment, but have not yet been added
finally to the National Priorities List.
Pro Forma Balance Sheet
A balance sheet based on assumed or anticipated
facts (usually short form).
Quit Claim Deed
A deed of conveyance, operating by way of release,
that is intended to pass any title, interest, or claim
that the grantor may have on the premises, but not
professing that such title is  valid, and not
containing any warranty or  covenants for title.
Record of Decision
Published by the government after completion of a
remedial investigation/feasibility study, the Record
of Decision (ROD) identifies the remedial alternative
chosen for implementation at a Superfund site.
                                        A - 8

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Remedial Action
Remedy or remedial action or measure.  Actions
consistent with permanent remedy taken instead of,
or in addition to, removal action to prevent or
minimize the release or threatened release of
hazardous substances so that they do not migrate to
cause a substantial danger to present or future
public health, welfare, or the environment.  Includes
a variety of on-site measures (storage, perimeter
protection, recycling or reuse, dredging, excavation,
etc.), off-site disposition, required monitoring, and
the costs of permanent relocation of affected popu-
lations when deemed necessary by the President.
Remedial Investigation/
Feasibility  Study (RI/FS)
An extensive technical investigation conducted
by the government or by PRPs to investigate the
scope of contamination (RI) and to determine  the
remedial response, consistent with the NCP, to be
implemented at a Superfund site (FS).  An  RI/FS
may include a variety of activities such as
monitoring, sampling, and analysis.
Remedial Project Manager
An individual, designated within an EPA region, who
coordinates, monitors, or directs remedial or other
response activities under Subpart F of the NCP.
The counterpart of the On-Scenc Coordinator for
removal actions (see On-Scene Coordinator).
Remedy

Removal
See Remedial Action.

Actions taken involving cleanup or removal of
released substances from the environment; actions in
response to the threat of release; actions that may
be necessary to monitor, assess, and evaluate the
release or threat; disposal of removed material; or
other actions needed to prevent, minimize, or
mitigate damage to public health or welfare or to
                                        A - 9

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                                  the environment.  Removal also includes, without
                                  being limited to, security fencing or other measures
                                  to limit access, provision of alternative water
                                  supplies, temporary evacuation and housing of
                                  threatened individuals not  otherwise provided for,
                                  action taken under Section 104(b) of CERCLA, and
                                  any emergency assistance provided under the
                                  Disaster Relief Act.
Restrictive Covenants
A provision in a deed limiting certain uses of the
property.
Schedule of Beneficiaries
A list of beneficiaries of a trust.
Site Discovery
The point at which the EPA becomes aware of a
site.
Subpoena
A command to appear at a certain time and place to
give testimony on a certain matter or produce
documents.
Superfund
See CERCLA.
Superfund Amendments and
Reauthorization Act (SARA)
The Superfund Amendments and Reauthorization
Act (SARA) was signed into law on October  17,
1986.  SARA leaves the basic framework of
Superfund but makes several policy and management
changes that reflect EPA's experience in
administering the original law.  SARA emphasizes
the importance of developing permanent solutions at
hazardous waste sites and imposes  requirements for
setting cleanup standards. SARA establishes goals
and mandatory schedules that EPA must follow for
various phases of remedial response.  SARA  also
sets out procedures for negotiating settlements with
potentially responsible partcis for conducting

     A - 10

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                                   remedial response actions. The new law increases
                                   Superfund to $8.5 billion over the next five years
                                   and broadens the fund's tax base.
Title Insurance
Insurance against loss or damage resulting from
defects or failure of title to a particular parcel of
realty, or from the enforcement of liens existing
against it at the time of the insurance.
Trustee Certificate
A written acknowledgment that certain land is in
trust and that a certain person is trustee.
Warranty Deed
Windshield Survey
A deed in which the grantor guarantees to the
grantee that the granter has title to the land free
of any other possible claims. This document will
identify the owner of a site at a particular point in
time.

Survey conducted  to obtain names and addresses of
industries located  near a site.  The researcher walks
or drives the area  surrounding the site, noting
which industries could be PRPs.  Normally a subtask
of the industrial survey task.  See Section 3.2.9,
Industrial Survey.
                                        A - 11

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                                   ACRONYMS
AOC      -    Administrative Order on Consent
CAA      -    Clean Air Act
CBI       -    Confidential Business Information
CERCLA  -    Comprehensive Environment Response, Compensation, and Liability Act
CWA      -    Clean Water Act
DCF      -    Document Coding Forms
DOJ      -    Department of Justice
EMSL     -    Environmental Monitoring Systems Laboratory
ERA      -    Expedite Response Action
ERCS     -    Emergency Response Cleanup Services
ERT      -    Emergency Response Team
ESI       -    Expanded Site Investigation
FIFRA    -    Federal Insecticide, Fungicide, and Rodenticide Act
FIT       -    Field Investigation Team
FOIA     -    Freedom of Information Act
FS        -    Feasibility Study
HRS      -    Hazard Ranking System
LTRA     -    Long Term Remedial Action
NEAR     -    Non-Binding Preliminary Allocation of Responsibility
NCP      -    National Contingency Plan
NEIC     -    National Enforcement Investigation Center
NPDES    -    National Pollutant Discharge Elimination System
NPL      -    National Priorities List
O&M     -    Operation and Maintenance
OECM     -    Office of Enforcement  and Compliance Monitoring
OSC      -    On-Scene Coordinator
OSHA     -    Occupational Safety and Health Administration
OWPE     -    Office of Waste Programs Enforcement
PA       -    Preliminary Assessment
PCB      -    Polychlorinated Biphenyls
PI        -    Private Investigator
PRP      -    Potentially Responsible Party
QA       -    Quality Assurance
                                      A - 12

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QC
RA
RCRA
RD
REM
RI
ROD
SARA
SDWA
SEC
SETS
SFFAS
SI
SIC
SW
TES
TSCA
UCC
               ACRONYMS (Continued)

Quality Control
Remedial Action
Resource Conservation and Recovery Act
Remedial Design
Remedial Planning
Remedial Investigation
Record of Decision
Superfund Amendments and Reauthorization Act
Safe Drinking Water Act
Securities and Exchange Commission
Site Enforcement Tracking System
Superfund Financial Assessment System
Site Investigation
Standard Industrial Classification
Solid Waste
Technical Enforcement Support
Toxic Substances Control Act
Uniform Commercial Code
                                      A - 13

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Appendix B
Activities Checklist

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                                      POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
         Task
               LABOR HRS
                  Range
                                                          TASK SELECTION CRITERIA/CONDITIONS
Note:  Tasks 3.1.1 through 3.1.10 are presented here in the order they are generally performed as opposed to
       alphabetically as they are in the text.  The tasks are presented in this order to assist the researcher in
       preparing the scope of work.

3.1.1 []     Agency Record Collection
           and File Review
Gather, organize
information.
                                  180-300
                                        Review documents to extract PRP information and
                                        leads.  This task is used in most PRP searches.
  l.[]Federal

  2.[]State

  3.[]Local

  4. [] Other
Document locations:
Number of pages:
Document locations:
Number of pages:
Document locations:
Number of pages:
Document locations:
Number of pages:
     Describe anything unique about the records
     (condition of the records, business
     confidential, must travel to review, possible
     to mail records to contractor, possible
     contamination):
3.1.10 []    Title Search (Hours in parentheses reflect subcontracted title research by title company. These
           hours are a portion of the total hours listed).
     a.(l    Simple Title
            Search

     b.[]    Complex Title
            Search

     c.[]    Unknown Title
            Search
            Regular copies
            of recorded
            instruments
            (deeds, leases,
            mortgages)
                  30-100
                  (5-50)

                  110-225
                  (50-100)

                  45-350
                  (10-150)
                  Included
                  above
Site involves less than five parcels and less
than 30 years of relevant history.

Site involves more than five parcels or more than
30 years of relevant history.

Contractor will develop a site property description,
estimate title search cost, and discuss with EPA prior
to initiating the title search. May result in either
a simple or complex title  search.

Necessary to support site history and PRP list. If
litigation is expected, certified copies (see next
task) are usually required for admissibility.
                                                                   B-l

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                                     POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
Task
e.[] Certified copies
(deeds, leases,
mortgages)
LABOR HRS
Range
Contractor
Included
above
TASK SELECTION CRITERIA/CONDITIONS
Obtain certified copies if litigation is expected and
case attorney requires certified copies for court
admissibility. (Usually costs about $0.50 - 1.50/page.)
    f.[]    Chain of Title
                                   20-40
                      A chronological list of title instruments for
                      quick reference to title transactions over time.
    g.Q    Property History
           Narrative
                                   30-150
                      Requested for complex sites when a detailed narrative
                      description of property history would assist case
                      development.
3.1.5   []
          Interviews with
          Government
          Officials
1-20/
interview
Interviews required of persons known or suspected to
possess unique information about the site. Interviews
generally conducted by phone unless travel is specifi-
cally requested.  This task is used in most PRP searches.
3.1.8   0
3.1.4
 3.1.6
           Records
           Compilation
90-500
           History of
           Operations at
           Site
3.1.7   []    PRP Status/
           PRP History
           PRP Name and
           Address Update
                                    30-150
                                    0.5-5/
                                    PRP
 O.S-5/PRP
Records are located and manually organised to permit
easy access and use.  A file system and index are
usually established. Depending on the number of
documents,  the data may be computerized.  (See 3.2.13
and 3.2.14 for database record compilation tasks.)

A narrative description of site operations through
a specified period of interest is presented in a
report. This history focuses on activities and
parties involved with hazardous wastes. May be
particularly useful if many operators or various
types of operations were  involved at the site.

PRPs  for which a current addreas is not available are
researched to determine their fate.  Names, addresses,
and registered agents are provided for the PRPs and
any successor companies.

Current name and address information is
obtained for identified PRPs.  Includes name,
address, registered agent, merge™, and name changes.
                                                                                                                           c
 3.1.3   Q    Financial Status
            Develop financial
            information for
            public companies.
          1.0     Known PRP
                 (attach list
                 of names and
                 addresses).
                                    2-100/
                                    PRP
                       NEIC can conduct financial status task on publicly
                       held companies.  The contractor can research these
                       companies if, after NEIC report is received by EPA,
                       it is determined by EPA that additional information
                       is needed. The contractor can attempt to develop infor-
                       mation regarding the financial aiisets of all other PRPs.
                                                                   B-2

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                                     POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
        Task
LABOR HRS
  Range
        2.(]    Contractor-
               identified PRPs.
                                                         TASK SELECTION CRITERIA/CONDITIONS
           Develop financial
           information for
           private companies
           or individuals.
             Use Private
             Investigator

           Financial
           record audit
  2-100/
  PRP
   100-ISO/
   PRP
This task can provide PRP information such as
a description of corporate financial status,
officers, tax history, and current business
practices.  For privately held companies and
private individuals, a private investigator
may be required.

Conducted if PRP internal financial records are
accessible.  A certified public accountant is required
to audit these records.
3.1.2   []    CERCLA 104(e)/        1-10/
           RCRA 3007(c)           letter
           Letters
3.1.9   []    Report                  50-300
           Preparation
3.2.1   []   Aerial Photographs      10-100
3.2.2   []   CERCLA Subpoena      New task
           Authority
3.2.3   []   Field Survey
   40-200
                        This task includes formulating potential questions for
                        PRPs based on gaps observed in available information,
                        preparing letters with PRP names and addresses, and
                        reviewing responses for information relevant to PRPs.

                        PRP reports must include sections on the site
                        background, project approach, contacts  and sources, site
                        history, PRPs, and  conclusions and recommendations
                        (and other information specified by EPA).

                        Aerial photographs  can provided detailed site information
                        without accessing the site. Photographs can also be used
                        to compare site characteristics over a period of time.

                        This task has not been fully developed to date.
                        This task is used to gather additional evidence through
                        field activities such as general field inspection,
                        document reviews, personal interviews, and drum label
                        recording.  Usually conducted only when there is no
                        other information available about a site.
3.2.4
           PRP Files Review
                                 180-300
       Describe anything unique about the records
       (such as condition of the records,
       business confidential, possible to mail
       records to contractor, possible
       contamination):
                                                         PRP documents, such as operator records, are reviewed
                                                         to extract PRP information and leads. This task should
                                                         be completed after a review of agency files.
                                                                 B-3

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         Task
                                      POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
LABOR HRS
  Range
                                                          TASK SELECTION CRITERIA/CONDITIONS
3.2.5   []   Private
           Citizen/PRP
           Interview
  1-20/
interview
Interviews with persons known or suspected to possess
unique information about the site.  Shall be conducted
by telephone unless travel is specifically requested.
Detailed interviews, when needed, can be documented by
a transcript.
3.2.6   []   Private
           Investigations
   10-100
3.2.7  I]   SETS
3.2.8  []   Site Sampling
  0.5-5/
  PRP
   20-400
Private investigators can be useful in locating
individuals, developing information regarding closely
held financial assets, and interviewing parties with
knowledge of the site activities. Private investigators
should be employed if a potential  for danger exists.

This database may indicate that a PRP has previously
been sent a notice letter and can provide basic
information about a PRP.  Thin task should be completed
when no  other information  is available.

Chemical analysis of samples collected at the site
are used  to link a specific identified waste type
with a PRP.  Conducted only when analytical results
or other evidence about a PRP are not available.
3.2.9  (]   Industrial Survey
   40-100
This task identifies PRPs through a survey of local
businesses and a review of various industrial manuals
and directories. This is an indirect method of identi-
fying PRPs and may be difficult to prove if no other
information is available.  May serve as a starting
point of more detailed research  into disposal practices
of local industries.
 3.2.10 []    Waste Stream           40-400
            Inventory
 3.2.11 []    Process Chemistry       1-5/PRP
            Analysis
                         Compile an accurate inventory of wastes that
                         were disposed of at the site by reviewing operating
                         logbooks, analytical reports, and waste stream records.

                         The process chemistry analysis l:ask is generally
                         performed after an industrial survey and a waste
                         stream inventory.  This task attempts to link
                         industries with wastes at a site.
 3.2.12 []    Correspondence
            Tracking
            Databases
   200-500
 A database is created to keep track of PRPs sent
 letters (Notice or Information), whether they responded,
 and other information aa specified by EPA.  Computerized
 databases should be considered for cases with a large
 number of PRPs.
                                                                   B-4

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                                     POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
         Task
                      LABOR HRS
                        Range
3.2.13 []    Inventory Databases

       l.[]    With key words
       2.[]    Without key words
                        500-1500
                        250-1000
                                                         TASK SELECTION CRITERIA/CONDITIONS
                      A computer-based information management system is
                      developed to organize and permit quick retrieval of
                      documents by key word, author, date, subject, or other
                      predetermined strategy.  Useful for searches with a
                      large number of documents or if documents must be easily
                      accessed.
3.2.14 I
3.2.15 []
Transactional
Databases
Compliance
History
                                   400-1500
30-150
Used when a relatively large number of site transactions
are available (500 or more ) or when it is necessary to
rank a large number of PRPs based on quantified site usage
information. (See also 3.2.17 Generator Ranking.)

This task provides a narrative description of aite
compliance status for a specified period of interest
focusing on activities and parties involved with
hazardous wastes.
3.2.16 []
3.2.IT I
3.2.18
Financial
Assessment

Generator
Ranking
Property
Appraisal
TO-HO/
PRP

20-100
                                   50-200/
                                   site
This task provides a more detailed analysis of a
PRP's financial situation than the financial status.

This is usually a work product (printout) from a
transactional database project (see Section 3.2.14).
The ranking orders generators by waste volume
or other comparable units.

Appraisal of site property owned by & PRP which may
have value.  Appraisal may focus on contaminated
state or post-remedial state.
                                                                 B-5

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Appendix C
EPA/NEIC Information Services

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                       EPA/NEIC INFORMATION SERVICES

     The National Enforcement Investigations Center (NEIC) provides information to
EPA Superfund personnel  to enable assessment of a Potentially Responsible Party's (PRP)
financial status.  NEIC staff maintain and operate the Superfund Financial Assessment
System (SFFAS) model for publicly held companies and can provide Dun and  Bradstreet
reports for those companies (usually privately held) for which an assessment cannot be
done.

     The SFFAS is an automated financial model intended to be used as a tool to assist
enforcement personnel in negotiating with PRPs. It was designed to (1) calculate  the
amount of  remedial action costs a company can afford to pay and (2) provide a concise
financial evaluation  of the company.  The model has two components. First, it
calculates the PRP's  "ability to pay" by measuring the cash flows from the company's
operations  and the variability in these cash flows to determine the company's ability to
maintain its current  business and pay the remedial action  costs. A table is generated
that indicates the probability that a given amount of cash will be available to fund a
remedial action. Second, it uses  three standard financial ratios to assess  whether
additional  borrowing by the firm may be feasible. These  ratios are also used  to alert
Superfund enforcement personnel to  possible defenses the  company may  use to argue
that it is unable to pay remedial action costs.  The SFFAS model requires a minimum of
three, and  preferably five, years of annual data on net  income and depreciation.  In
addition, data on financial condition for the most recent  year are required, including
current liabilities, long-term liabilities, net worth, interest expense, and income tax rate.
The SFFAS model was intended  to be used as a tool to assist enforcement personnel in
negotiating with PRPs.

     Because the SFFAS  model requires specific financial data and this  data is usually
not available for privately held companies, NEIC can provide Dun and Bradstreet reports
for these companies.  The Dun and Bradstreet report typically provides brief financial
data, such  as annual sales, net worth, and  net profit/loss,  depending on what the  owner
or chief executive provides to Dun and Bradstreet. However, the Dun and Bradstreet
report may also include other  important information, such as:

           o    Business done by the company
           o    Corporate history

                                         C-l

-------
          o    Subsidiaries and affiliates
          o    Plant locations
          o    Principals (president, vice-president, etc.)
          o    Bankruptcy filings

     Finally, NEIC maintains an automated file that contains a listing of all PRPs for
which Superfund financial assessments have been conducted.  Information from this  file
can be retrieved by individual PRP name and by site name.  This is useful in
determining PRP liabilities at other Superfund sites.

     To request information, EPA Superfund  enforcement personnel should call the NEIC
Information Services Section at FTS 776-3219.  Since financial assessments are
considered attorney work product, it  is necessary to give the case attorney's name when
requesting information.  These services are available solely to EPA Superfund
enforcement personnel in support of  the  Superfund enforcement program, and any
requests for financial data must be made through the Regional Superfund offices.
Turn-around time  can vary, depending upon the number of PRPs for  which financial
assessments are needed.  For example, it  can take several weeks to gather the financial
data and provide assessments for a site where several hundred PRPs have been
identified, but only a day or two for a site where 10 or less have been identified.
Examples of an SFFAS and a Dun and Bradstreet report follow.

     NEIC has access to a variety of automated information systems.  For information
about these systems, call the Information Services Section at the above number.
c
                                        C-2

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"  BE  SURE  XAME, BUSIXESS  AXD
.^ADDRESS  HATCH YOUR FILE.
                                       AKS'-'IF.IXG
                                        IX2UIRY
S                                                         ?i »«•***—^rv •
                                                         t, —-< — /._i IX
      DUXS =  08-737-2512'
B-D  CHEKICAL  CO IXC

699  DEXARGO  nARKET
AXD  BRAXCH(ES) OP. DIVISIOXCS)
DEXVER CO   80216
      TEL=  303 296-3800
                                      DATE  PRIXTED
                                      KAY 23  1986

                                      HFG cusion
                                      CHEniCALS

                                      SIC KOS.
                                      28 69   51 61
                                   Sl'nnARY
                               RATIKG     DD3
CHIEF EXECUTIVE:  BRUCE HAYXE XELSOX, PRES
                               STARTED
                               PAYMENTS
                               SALES

                               WORTH  r
                               EMPLOYS
                               HISTORY
                               FIXAXCIXG
                               COKDITIOK
                               TREXD
                               1976
                               SEE BELOW
                             $650-730,000
                               CPROJ)
                               SUO.675
                               10(10 HERE)
                               CLEAR
                               SECURED
                               FAIR
                               UP
 PAYHEXTS   CAmounts  nay be  rounded  to nearest figure in  prescribed ranges)
 REPORTED  PAYIXG               HIG«       XOW       PAST    SELLING            LAST SALE
 04/86

 02/86
 01/86
 12/85
 1 1/85
 09/85
 07/85
           RECORD

           Ppt
           (002)
           Ppt
           Ppt
           Ppt
           Slow 30-60
           Slow 30
           (009)
           Slow 20
CREDIT

   100
 2500
   100
 1000
   750
   50
   500
   250
   250
 1000
 OWES

 -0-
 -0-
  50
1000
 -0-
 -0-
 -0-
 -0-
 -0-
 -0-
DUE

-0-
~o-
-0-
-0-
-o-
-0-
-0-
-o-
-0-
-0-
                                                              TERKS
K30
K30
 KITHIK

6-12  Hos
1  no,
1  no
2-3  Hos
6-12  nos
6-12  nos
6-12  nos

6-12  nos
2-3  nos
  PDATE
 03/11/86
              Payment  experiences  reflect  how bills are met in relation to the terms  granted
         In some instances oayment beyond terms can be the result of disputes over  merchandise
         skipped invoices ate.
                In  a communication received Feb  21  1986  and signed by  Bruce
           Xelson Pres Feb  15 1986,  it was  indicated:
           Sales are now  $661,590  yearly.
           Profits  for the  past six months  uere  up.
                The present net worth is  *90,000.
 03/11/86
 FIXAXCE
  * A FIXAXCIAL  SPREAD SHEET OF  COttPARATIVES ,  RATIOS,  AXD IXDUSTRY AVERAGES
  * HAY BE  AVAILABLE.  ORBER A DUXS FIXAXCIAL PROFILE  VIA YOUR  DUXSPRIXT
  * TERrtTXAL OR  LOCAL DCB  OFFICE
                                                                                         X

                                                                                         X
 09/23/85
           Curr  Assets
           Curr  Liabs
           Current Ratio

           Other  Assets
           Worth
           Sales

                 Fiscal statement  dated HAR 31  1985:
           Cash               *         11,696    Accts Pay          *
           Accts  R«c                   62,708    Contracts  Payable
           Inventory                   U7,U32    Taxes

Har








Fis
31
121
61

60
1 1
UO
S9U
21
•> cal
985
836
693
. 97
1U3
680
675
708
5U4
                                                                                55,825
                                                                                 3,000
                                                                                 2,858
             Curr  Assets
           Fixt £  Equip
           Other Assets
                                       121 ,836
                                         9,217
                                         2,M63
                      Curr Liabs •
                   Xotes Payable
                   CAPITAL  STOCK
                   P.ZIS.IKZL  ZA2.XIXGS
                                     61 ,693
                                     28,685
                                     1 1 ,U09
                                     31,729
             Total Assets        .     133,516      Total                     133,516
              From  FEB  01  1984  to  MAR  31  1985  annual  sales $594.708; cost of  goods sol
         $357,752.   Gross  profit  $236,956;    operating   expanses   $215,412.    Nat   incor
         $21,544.   Monthly rent $1,600.
              Fire insurance on mose & fixt &  bldg $1,000,000.
              Prepared  from  statemant(s) by  Accountant1 Carol C Campbell.  Prepared  from book
                                                                            CCOXIIXUED)
THIS *fporr FU"HISM(O FUHSU»WT TO COWT«UCT ton TNI fici.usi»f us! 0' TNI suBSCmst* AS out HCTOH TO cowsioto IM CO»NICTIOM v»n» c«tC"
INSURANCE MARKETING OK OTHCD SUSlNtSS DECISIONS CONTAINS iNFOKMaTION COMPILED mOM SOURCES WHICH DUN 4 IRAOSTMCT INC. DOES NOT CO«'«OL •>•
WMOSt lNfO«»»ATIOH UNLESS OTHJUwtSt INDICATED IN THl «f»OHT HAS NOT BEEN VEHIflEO IN FUKNISHINC THIS »fPO«T DUN 1 MAOSTREET  INC IN NO •»'
ASSUMES ANT PAUT 0' THE USEX'S BUSINESS RISK DOES NOT GUARANTEE  THE ACCURACT  COMPLETENESS OR TIMELINESS Of THE INFORMATION PR.OVIOC3 •••
SHALL NOT IE LIABLE FOR ANT LOSS OR INJURY WHATEVER RESULTING 'ROM CONTINGENCIES BE»ONO ITS CONTROL OR »ROM NEGLIGENCE.     «: ""•'«•'•

-------
   B-D  CHZrtlCAl CO  IXC
   0£XV£I  CO
                                                                            Paae  2
                                                                      COXSOLIDXTID RIPO*',
 (Cont'd)  without audit.
                                                  — 0 —
               Item worth shown in summary section  was computed after deduction   of  intangibles,
          organization  expenses, deposits,  totaling  $2,463.  Fixed assets shown  net  less $11.36]
          depreciation.   Submitted   Sep    23    1985    by   Bruce   Wayne    Nelson,    president
               Other  assets  consist  of  prepaid   expenses,  deposits,  and organization costs.
          Notes payable are due officer; Bank secured  by equipment and due in 1986  and 1987;   anc
          due other.
               On  SEP  23  1985  Bruce  Wayne   Nelson,   president,  submitted the  above figures
               He   submitted   the   following   partial   estimates   dated  SEP   23    1985:
                  Projected  annual sales are  * 650-750,000.
               Bruce  Wayne  Nelson  stated  that   sales  for the 5 months ended  Aug  1985 were wr
          5-10X compared to the same period  last year.   Profit for  the  period   was   up  10-202.
          Operations for the period were conducted  at  a  profit.
               Business is profitable, trend is  up, and condition is fair.

 PUBLIC FILIXGS
 UCC FILINGS
 05/13/86       Financing  Statement  *S6S611 filed  02-05-86 with Secretary, State of  CO.   Debtor-.
          B-D Chemical Co Inc. Denver, CO.   Secured Party:   Central Bank Of Denver,   Denver,   CO.
          Collateral: all inventory and Products.
 02/24/86       Financing  Statement  1845705 filed  11-07-85 with Secretary, State of  CO.   Debtor
          B-D Chemical Co Inc. Denver. CO.   Secured Party'   Central Bank of Denver,   Denver,   CO
          Collateral: specified industrial equipment/machinery.

          The public record items reported above under "PUBLIC FILINGS"
          and "UCC FILINGS" may have been paid,  terminated, vacated
          or released prior to the date this report was printed.
 HISTORY
 09/23X85
                                                     Authorized  capital consists  of  50,000 share:
           BRUCE WAYXE  XILSOX,  PRES
           DIRECTOR(S)'•   THE  OFFICERCS)
              Incorporated  Colorado   Mar  1983.
         common stock, no par value.
              Business started 1976 by Bruce Wayne Nelson individually.   100JC of  capital  stocl
         is owned by Bruce Wayne  Nelson.
              BRUCE   WAYNE   NELSON   born  1956.   1976  and  continues
OPZRATIOX
09/23/85      Manufactures  custom chemicals.
         Terms are net 30 days.   Has 150 accounts.
         'United States.
         Nonseasonal.
              EMPLOYEES:
              FACILITIES
         good condition.
              LOCATION:
              BRANCHES:
                                                                            active   with  subject
                                                      Sells to  major  oil  companies.    Tarritor-
                           10 including  officers.   10 employed here.
                             Rents  7,500 sq.  ft.  in one story brick and cinder  block  building i
                           Premises neat.
                          Industrial section  on  side street.
                          Operates a branch   storage  warehouse  of  1.500  square   feet  at  80
          Denargo Market, Denver, CO.
            05-23C9&0   /22)           00000                         067    082    K
THIS REPORT FURNISHED PURSUANT TO CONTRACT FOR THE E1CLUSIVE USt OF THE SUMCRHER *S ONE FACTOR TO CONSIDER IN CONNECTION WITH
INSURANCE  MARHETINC OR OTHER BUSlNtSS DECISIONS CONTAINS INFORMATION COMPILED FROM SOURCES WHICH DUN t »RADSTREI1 INC DOES HOT CONTROL »"*|
WHOSE INFORMATION  UNLESS OTHERWISE INDICATED IN TH| REPORT HAS NOT lEtN VERIFIED IN FURNISHING THIS REPORT DUN 4 •"OSTREET INC IN NO WA«
ASSUMES ANT »A«T or THE USER S BUSINESS RISK DOES NOT CUARANTEE THE ACCURACY COMPLETENlSS. OR TIMELINESS Or THE INFORMATION PROVIDED ANf
SHAH. NOT IE LIAM.E FOR »«4T LOSS OR INJURI WHATEVER RISUUmO rRO* CONTINGENCIES iETONO ITS CONTROL OR FROM NfGLlCIHCt.     «•' '"

-------
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-------
Appendix D
Key Information Source Index

-------
                        KEY INFORMATION SOURCE INDEX*
Section        Research Task                      Information Source(s)

3.1.1           Agency File Review                 1, 2, 7j
3.1.2           CERCLA 104(e) Letters             **
3.1.3           Financial Status                    3, 5, 6, 7a
3.1.4           History of Operations               1, 2, 3, 7j
3.1.5           Interviews                          **
3.1.6           PRP Name  and Address Updates     3, 4, 8
3.1.7           PRP Status/PRP History            3, 4, 7b,  7h, 8
3.1.8           Records Compilation                **
3.1.9           Report Preparation                 7j
3.1.10          Title Search                        3

3.2.1           Aerial Photographs                 7b
3.2.2           CERCLA Subpoena Authority       **
3.2.3           Field Survey                       6, 7j
3.2.4           PRP File Review                   6
3.2.5           PRP Interviews                     **
3.2.6           Private Investigations               **
3.2.7           SETS                               7a
3.2.8           Site Sampling                       1, 2, 6, 7a, 7j
3.2.9           Industrial Survey                   2, 3, 8
3.2.10          Process Chemistry Analysis          1, 2, 3, 6, 9
3.2.11          Waste Stream Inventory             6, 7a
3.2.12          Correspondence Tracking Database  **
3.2.13          Inventory Databases                **
3.2.14          Transactional Databases            6b
3.2.15          Compliance History                 1, 2, 6, 7a
3.2.16          Financial Assessment                4, 5
3.2.17          Generator Ranking                 **
3.2.18          Property Appraisal                 3, 6

 *   This list includes the  sources that, in most situations, have information on PRPs
     and sites. Additional  sources may be available for a specific PRP or site.

**   Research tasks that rely on previously  collected information.
                                          D-l

-------
                             INFORMATION SOURCES

(1)   State Agency Sources
     Department of Natural Resources
     Health Department
     Environmental Boards
     Attorney General's Office
     Water Resources Board
     Soil Conservation  Board
     Bureau of Mines

          Sample Documents:
               licenses and permits                memos
               correspondence                     studies
               inspection reports                  sampling data

(2)   Local City/County Agency Sources
     Attorney's Office
     Health Department
     Department of Public Works
     Water Pollution Control, Wastewater Management Departments
     Planning, Land Use, Engineering Departments
     Township Zoning  Board
     Fire Department
     Police Department

          Sample Documents:
               operation maps           list of hazardous materials
               disposal guidelines       inspection and violation reports
               correspondence           plat maps and aerial photos
               accident report           permits and licenses
               applications             site history memos
(3)   Title Information Sources
     City or County Clerk or Recorder's Office
     Commerce Department
     Tax Assessor's Office

          Sample Documents:
               deeds                   mortgages and liens
               leases                   easements
               grants                   agreements
               addresses                legal property descriptions
                                        D-2

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(4)   PRP Status Information Sources
     Secretary of State's Corporation and Archives Offices (SOS)
     Local Telephone Directory Assistance
     Post Office
     Libraries
     State Archives

          Sample Documents:
               articles  of incorporation
               mergers
               registered agents
               certificates to do business
               articles  of dissolution
               name changes
               annual reports
               city directories
               Security and  Exchange Commission reports
               Dun and Bradstreet reports
               Moody's Manual of Investments
               Standard and Poor's Corporation Descriptions
               The Thomas Register of Manufacturers
               Notification of Hazardous Waste Activities
               DIALOG

(5)   Financial Information Sources
     Commissioner's Office
     Probate Court
     Uniform Commercial Code Division (UCC)
     Security Exchange Commission (SEC)
     Tax Assessor's Office
     Libraries
     Bankruptcy Court

          Sample Documents:
               wills                     financial statements
               estate records            references to  trusts
               quarterly reports         financial reports
               tax assessments           corporate business publications
                                         D-3

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(6)   Site Records
     a.
          memos
          offers
          discs
          deeds
          receipts
          agreements
          permits
          memoranda
          bulletins
          charts
          drawings
          schedules
          telegrams
          tapes
          punch  cards

          invoices
          gate slips
checks
contracts
agendas
leases
toll receipts
licenses
bids
notes
announcements
maps
manuals
price lists
teletypes
summaries
recordings

waste manifests
bills of lading
insurance policies
computer printouts
weight receipts
correspondence
data compilations
proposals
minutes of meetings
books of original entry
calendar or diary entries
reports of scoientific study
reports of investigation
magnetic voice or  video
magnetic tapes
accounts receivable
operating logs
ledgers
(7)  Federal Agency Source

     a.   National Enforcement Investigations Center
     b.   Department of Interior, U.S. Geological Survey
     c.   Bureau of Mines
     d.   Bureau of Reclamation
     e.   Department of Agriculture, Soil Conservation Service
     f.   Department of Labor
     g.   Nuclear Regulatory Commission
     h.   Library of Congress
     i.   National Archives
     j.   EPA - Headquarters and Regional Offices*

          Sample Documents:
               Supcrfund Financial  Assessment
               SETS
               Standard Industrial Classification code
               maps/aerial photographs

     *   EPA headquarters and regional offices have a structured organization. For
          example,  divisions may be divided into branches, branches into sections, and
          sections into units. The researcher should have  a clear understanding of the
          region's organization and each group's responsibilities.  Different groups will
          have different types  of documents depending on the group's involvement with
          the site.  During the  PRP search, all pertinent groups should be contacted to
          obtain  documents.  If a contractor is conducting the search, it may  be
          appropriate to have the primary contact act as the  liaison between  the
          contractor and other  EPA  groups.
                                          D-4

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(8)   Miscellaneous Non-Government Sources
     Libraries - Public, University
     Historical Societies
     Local Museums
     Newspapers, Network News Stations
     Local Chamber of Commerce
     Better Business Bureau
     Local Telephone Directories
     Computer Information Services - DIALOG
     Community Action Groups

          Sample Documents:
               local industrial directories
               newspaper articles
               trade journals

(9)   Process Chemistry Sources
     EPA Office of Water and Waste Management
     Trade Associations
     Kirk-Othmcr Encyclopedia of Chemical Technology

          Sample Documents:
               effluent limitation guidelines
               trade publications
               product processing information
                                        D-5

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Appendix E
Information Collection Forms

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                            DISCUSSION TOPICS FORM
                     FOR PRIVATE CITIZEN/PRP INTERVIEWS
NOTE:    The purpose of this form is to assist the researcher in preparing a site-
          specific interview outline. The topics listed below can be eliminated, edited,
          or expanded, depending on the PRP search, scope of work, site conditions,
          interviewee, background information, and data gaps.
LOCAL RESIDENT


          o    Address/telephone number


          o    Years at this address


          o    Relationship to site
          o    Sources of information (personal observations, second-hand information,
               other)
          o    Observations of site activities; provide as much detail as possible, such
               as date, time of day, persons involved, names on trucks .  . . (may need
               to subdivide this into different types of activities, such as disposal,
               truck entry procedures, fires, spills).
          o    Names/telephone numbers of other local residents


          o    Site-specific questions:



SITE OWNER/OPERATOR (LANDFILL)


          o    Address/telephone number


          o    Title
          o    Personal history/association with site (years involved with site, roles,
               and responsibilities)
          o    Years of landfill operation

                                         E-l

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o    History of landfill


o    Types of waste accepted


o    Methods of disposal during entire period of operation


o    Recordkeeping procedures


o    Availability of records


o    Names, addresses, and telephone numbers of generators using the site
o    For each generator, describe type of waste, quantities, frequency,
     haulers
o    Names, addresses, and telephone numbers of haulers using the site
o    For each hauler, describe types of waste, quantities, frequency,
     generators
o    Names, addresses, and telephone numbers of other owners or operators
 o     For each owner or operator describe years involved, roles, and
      responsibilities
 o     Names, addresses, telephone numbers of site employees
 o     For each employee, obtain general information, such as responsibility and
      years of employment.
 o     Spontaneous events (fires, spills)
 o     Contract/relationship between owner and operator; between
      owner/operator and generator; between owner/operator and hauler

 o     Site-specific questions
                               E-2

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SITE OWNER/OPERATOR (MANUFACTURING FACILITY)


          o    Address and telephone number


          o    Title
          o    Personal history/association with site (years employed at site, roles, and
               responsibilities)
          o    History of site


          o    Previous manufacturing facilities at site


          o    Types of waste generated at site


          o    Methods of disposal during entire period of operation
          o    Wastes accepted from off-site sources (If yes, obtain detailed information
               about these wastes — generator, hauler, waste types, quantities, methods
               of disposal, dates of receipt.)
          o    Recordkeeping procedures (log books, operating records)


          o    Availability of records


          o    Names, addresses, and telephone numbers of other owners or operators
           o     Names, addresses, telephone numbers of site employees (If it is a small
                facility, you may want names of all employees; if it is a large facility,
                you may want names of  key personnel.)
          o     For each employee named, obtain general information such as
                responsibility and years of employment
          o    Spontaneous events (fires, spills)


          o    Site-specific questions



                                         E-3

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GENERATOR EMPLOYEE (WASTE  HAULED AND DISPOSED OF AT SITE)


          o    Address and telephone number


          o    Title


          o    Employment history  with generator
          o    Sources of information (personal observation, second-hand information,
               other)
          o    Wastes (type, quantity, and frequency) disposed of at the site
          o    Names, addresses, and telephone numbers of haulers (Did the generator
               haul its own waste?)
          o    Generator's role in determining disposal site


          o    Generator's role in determining disposal method
          o    Explain site's disposal method (Explain how generator obtained this
               information — site visit, second-hand knowledge from site operator or
               haulers, truck drivers, other.)
          o    Explain site's history


          o    Spontaneous events at the site (fires, spills)


          o    Recordkeeping procedures


          o    Availability of records
           o    Names, addresses, and telephone numbers of other persons employed by
                this generator
           o    Names, addresses, and telephone numbers of other generators or haulers,
                and their employees that disposed of wastes at the site
           o    Any additional information on other generators or haulers
                                         E-4

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          o    Site-specific questions


HAULER EMPLOYEE


          o    Address and telephone number


          o    Title


          o    Employment history with hauler
          o    Sources of information about hauling procedures and site (Observation,
               as observed by a truck driver, second-hand knowledge as relayed by site
               operator, other)
          o    Wastes (type, quantity, and frequency) disposed of at the site


          o    Names, addresses, and telephone numbers of generators


          o    Explain site's disposal methods


          o    Explain site's history


          o    Spontaneous  events at the site (fires, spills)


          o    Recordkeeping procedures


          o    Availability of records
          o    Names, addresses, and telephone numbers of other persons employed by
               this hauler
          o    Names, addresses, and telephone numbers of other haulers or generators,
               and their employees that disposed of wastes at the site
          o    Any additional information on other generators or haulers



          o    Site-specific questions


                                         E-5

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               DISCUSSION TOPICS FOR GOVERNMENT OFFICIALS
NOTE:    The purpose of this form is to assist the researcher in preparing a site-
          specific interview outline.  The topics listed below can be eliminated, edited,
          or expanded, depending on the PRP search, scope of work, site condition,
          interviewee, background information, and data gaps.
GOVERNMENT OFFICIAL


          o    Title, department/office/agency


          o    Address, telephone number


          o    Relationship of this  department to others and its roles
          o    Official's involvement with site (such as inspected site frequently for
               many years, newly assigned and has only reviewed records, other)
               Department's relationship with site
          o    Site history (This may be divided into subsections depending on the
               specific site, such as site operations, permitting history, compliance
               history, ownership history, others.)
          o    Disposal methods


          o    Types and quantities of wastes generated at the site


          o    Years of waste generation
           o     Wastes received from off-site generators (types, quantities, frequency,
                years)
           o     Generators' names and addresses


           o     Haulers' names and addresses


           o     Other PRPs


                                          E-6

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o    Site security


o    Site enforcement history


o    Administrative or legal actions involving the site


o    Relevant regulatory requirements
o    Others who have knowledge of the site (departments, officials, private
     citizens, others)
o    Availability of documents
                               E-7

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                    INDUSTRIAL SURVEY INFORMATION FORM
NOTE:    The purpose of this form is to assist the researcher in preparing a site-
          specific industrial survey information form. Depending on the scope of  work,
          site condition, background information, and data gaps, a more site-specific
          form  will have to be prepared to ensure that the proper information is
          collected. In some cases, sample answers are provided in parentheses.
          Generally, these samples are not as detailed as  would be required during an
          actual survey.
INSTRUCTIONS:    For each party identified as possibly contributing to the
                    contamination at the site, collect the following information:
               Facility name


               Address, telephone number


               Facility contact
           o     Physical relationship to site (within 1/2- to 1-mile radius, adjacent
                property to the south, upstream discharge point)
           o    Physical relationship source (windshield survey, industrial directory, tax
                assessment office map)
           o    Type of business (active sanitary landfill, gasoline station, hospital,
                manufacturing facility)
           o    Type-of-business source (local industrial directory, observation, yellow
                pages)
           o    Years of operation


           o    Standard industrial classification (SIC) code


           o    Types of waste generated


           o    Types-of-waste-generated source
                                          E-8

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Is the information on the types of waste generated (1) facility-specific
information based on review of facility-specific documents or (2)
assumptions based on a general knowledge of the industry?
                          E-9

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Appendix F
Comprehensive Environmental
Response,  Compensation, and
Liability Act

(As amended by the Superfund
Amendments and Reauthorization
Act of 1986)

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99th Congress  1       rnnfurrnPF PRINT           S'?n-
 2d Session           COMMITTEE PRINT
 THE   COMPREHENSIVE   ENVIRONMENTAL
   RESPONSE, COMPENSATION, AND  LIABIL-
   ITY  ACT OF  1980 (SUPERFUND)  (P.L.  96-
   510)
                  AS AMENDED BY
 THE SUPERFUND AMENDMENTS AND REAU-
   THORIZATION ACT OF 1986 (P.L. 99-499)
                   DECEMBER 1986
          Printed for the use of the Senate Committee
              on Environment and Public Works
              U.S. GOVERNMENT PRINTING OFFICE
 65-705 O              WASHINGTON : 1987
        For sale by the Superintendent of Document*, Congressional Sale* Office
            U.S. Government Printing Office, Washington, DC 20402

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         COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                  ROBERT T. STAFFORD, Vermont, Chairman
JOHN H. CHAFEE, Rhode bland          LLOYD BENTSEN, Texas
ALAN K. SIMPSON, Wyoming            QUENTIN N. BURDICK, North Dakota
JAMES ABDNOR, South Dakota           GARY HART, Colorado
STEVE SYMMS, Idaho                  DANIEL PATRICK MOYNIHAN, New York
GORDON J. HUMPHREY, New Hampshire   GEORGE J. MITCHELL, Maine
PETE V. DOMENICI, New Mexico          MAX BAUCUS, Montana
DAVE DURENBERGER, Minnesota         FRANK R. LAUTENBERG, New Jersey
                        BAILKY GUARD, Staff Director
                     La O. FULLER, Minority Staff Director

                                 
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                          CONTENTS
        TITLE I-HAZARDOUS SUBSTANCES RELEASES, LIABILITY,
                            COMPENSATION

Section:
    101—Definitions	     1
    102—Reportable quantities and additional designations	     9
    103—Notices, penalties	    10
    104—Response authorities	    12
    105—National contingency plan	    31
    106—Abatement action	    35
    107-Liability	    36
    108—Financial responsibility	    46
    109—Civil penalties and awards	    49
    110—Employee protection	    52
    111—Uses of fund	    53
    112—Claims procedure	    60
    113—Litigation, jurisdiction, and venue	    65
    114—Relationship to other law	    70
    115—Authority to delegate, issue regulations	    71
    116—Schedules	    71
    117—Public participation	    72
    118—High priority for drinking water supplies	    73
    119—Response action contractors	    74
    120—Federal facilities	    78
    121—Cleanup standards	    83
    122—Settlements	    90
    123—Reimbursement to local governments	   100
    124—Methane recovery	   100
    125—Section SOOKbXSXAXi) waste	   101
    126—Indian tribes	   101

  TITLE H—HAZARDOUS SUBSTANCE RESPONSE REVENUE ACT OF 1980

Section: 201—Short title;  amendment of 1954 code	   102

    SUBTITLE A—IMPOSITION OF TAXES ON PETROLEUM AND CERTAIN CHEMICALS

Section: 211—Imposition of taxes	   102

  [SUBTITLE B—ESTABLISHMENT  OF HAZARDOUS SUBSTANCE RESPONSE TRUST FUND

[Section:
    £221—Establishment of hazardous substance response trust fund	   113
    [222—Liability of United States limited to amount in trust fund	   114
    [223—Administrative provisions	  114]

               SUBTITLE C—POST-CLOSURE TAX AND TRUST FUND

Section:
    231—Imposition of tax	   116
    232—Post-closure liability trust fund	   117

                 TITLE UI-MISCELLANEOUS PROVISIONS

Section:
    301—Reports and studies	   117

                                  (in)

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                                   IV
Section—Continued
    302—Effective dates, savings provision	   123
    [303—Expiration, sunset provision	  123]
    304—Conforming amendments	   123
    305—Legislative veto	   124
    306—Transportation	   125
    307—Assistant Administrator for Solid Waste	   125
    308—Separability	   126
    309—Actions under State law for damages from exposure to hazardous
          substances	   126
    310—Citizen suits	   127
    311—Research, development, and demonstration	   128
    312—Low Canal property acquisition	   136

                   TITLE IV—POLLUTION INSURANCE

Section:
    401—Definitions	   137
    402—State laws; scope of title	   138
    403—Risk retention groups	   138
    404—Purchasing groups	   140
    405—Applicability  of securities laws	   141

PROVISIONS OF THE  SUPERFUND AMENDMENTS AND REAUTHORIZA-
  TION ACT  OF  1986   WHICH  DO  NOT AMEND  PUBLIC  LAW  96-510
  (CERCLA)

Section:
    118—Miscellaneous provisions	   143
    120—Federal facilities	   150
    121—Cleanup standards	   150
    124—Methane recovery	   151
    126—Worker protection standards	   151
    127—Liability limits for ocean incineration vessels	   153
    203—State procedural reform	   153
    205—Cleanup of petroleum from leaking underground storage tanks	   154
    209—Research, development, and demonstration	   161
    211—Department of Defense environmental restoration program	   162
    213—Love Canal property acquisition	   169

  TITLE III-EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW

             SUBTITLE A—EMERGENCY PLANNING AND NOTIFICATION

Section:
    300—Short title, table of contents	   169
    301—Establishment  of State  commissions,  planning  districts,  and
        local committees	   170
    302—Substances and facilities covered and notification	   171
    303—Comprehensive emergency response plans	   172
    304—Emergency notification	   174
    305—Emergency training and review of emergency systems	   176

                    SUBTITLE B—REPORTING REQUIREMENTS

 Section:
    311—Material safety  data sheets	   177
    312—Emergency and  hazardous chemical inventory forms	   179
    313—Toxic chemical release forms	   182

                      SUBTITLE C—GENERAL PROVISIONS

 Section:
    321—Relationship to  other  law	    189
    322-Trade secrets	    189
    323—Provision  of information to health professionals, doco>rs, nurses	    193
    324—Public availability of plans, data sheets, forms, and followup notices.  195
    325—Enforcement	    195
    326—Civil action	   198

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Section—Continued
    327—Exemption	   200
    328—Regulations	   200
    329—Definitions	.,.	   200
    330—Authorization of appropriations	   201

      TITLE IV-RADON GAS AND INDOOR AIR QUALITY RESEARCH

Section:
    401—Short title	   201
    402—Findings	   201
    403—Radon gas and indoor air quality research program	   201
    404—Construction of title	   203
    405—Authorizations	   203

   TITLE V-AMENDMENTS OF THE INTERNAL REVENUE CODE OF 1986

Section: 501—Short title	   203

                  Part I—Superfund and Its Revenue Sources

Section:
    511—Extension of environmental taxes	   203
    512—Increase in tax on petroleum	   204
    513—Changes relating to tax on certain chemicals	   204
    514—Repeal of post-closure tax and trust fund	   210
    515—Tax on certain imported substances derived from taxable chemicals.   211
    516—Environmental  tax	   213
    517—Hazardous substance superfund	   215

    Part II—Leaking Underground Storage Tank Trust Fund and Its Revenue
                                 Sources

Section:
    521—Additional taxes  on gasoline, diesel fuel, special  motor fuels,
        fuels used in aviation, and fuels  used in commercial transporta-
        tion on inland waters	    218
    522—Leaking underground storage tank trust fund	   224

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                            NOTE

  Amendments made by the Super-fund Amendments and  Reau-
thorization Act of 1986 (P.L. 99-499) are shown as follows:
  Language to be omitted is enclosed in black brackets; new lan-
guage is printed in italic; and language where there is no change
is printed in roman.
Public Law 96-510
96th Congress
                           An Act
  To provide for liability, compensation, cleanup, and emergency response for haz-
ardous substances released into the environment and the cleanup of inactive haz-
ardous waste disposal sites.

  Be it enacted by the Senate and House of Representatives of the
United States of American in Congress  assembled, That this Act
may be  cited as the "Comprehensive  Environmental Response,
Compensation, and Liability Act of 1980".

 TITLE I—HAZARDOUS SUBSTANCES RELEASES, LIABILITY,
                      COMPENSATION

                         DEFINITIONS

  SEC. 101. For purpose of this title£, the termj —
      (1) The term "act of God" means an unanticipated grave nat-
    ural  disaster  or other natural phenomenon of an exceptional,
    inevitable, and irresistible character, the effects of which could
    not have been prevented or avoided by the exercise of due care
    or foresight [;J.
      (2) The term "Administrator" means  the Administrator of
    the United States Environmental Protection Agency [;].
      (3) The term "barrel" means forty-two United States gallons
    at sixty degrees Fahrenheit [;].
      (4) The term "claim" means a demand in writing for a sum
    certainT;].
      (5) The term  "claimant" means any person who  presents a
    claim for compensation under this Act[;J.
      (6) The term "damages" means damages for injury or loss of
    natural resources as set forth in section 107(a) or lll(b) of this
           .
      (7) The term "drinking  water  supply" means any raw or fin-
    ished water source that is or may be used by a public water
    system  (as defined  in the Safe Drinking  Water Act) or as
    drinking water by one or  more individuals [;].
                              (l)

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  (8) The term "environment" means (A) the navigable waters,
the waters of the contiguous zone, and the  ocean waters of
which the natural resources are  under the exclusive manage-
ment authority of the United States under the Fishery Conser-
vation and Management Act of 1976, and (B) any other surface
water, ground water, drinking water supply, land surface or
subsurface strata, or ambient air within the United States or
under the jurisdiction of the United States [;1.
  (9) The term "facility" means (A) any building, structure, ir-
stallation, equipment, pipe or pipeline (including any pipe into
a sewer or publicly owned treatment  works), well, pit, pond,
lagoon, impoundment, ditch, landfill, storage container, motor
vehicle,  rolling stock, or aircraft,  or (B) any site or area where
a hazardous substance has been deposited, stored, disposed of,
or placed, or otherwise come to be located; but does not include
any consumer product in consumer  use or any vessel [;].
  (10) The term "federally  permitted release" means  (A)  dis-
charges  in compliance with a permit under section 402 of the
Federal  Water Pollution Control Act,  (B) discharges resulting
from circumstances identified and reviewed and made part of
the public record with  respect to a permit issued or modified
under section 402 of the Federal Water Pollution Control  Act
and subject to a condition of such permit, (C) continuous or an-
ticipated intermittent discharges from  a point  source, identi-
fied in a permit or permit application under section 402 of the
Federal Water Pollution  Control  Act, which are caused by
events occurring within  the scope of relevant operating or
treatment systems,  (D) discharges in compliance with a legally
enforceable permit under  section  404 of the Federal Water Pol-
lution Control Act, (E) releases in compliance with a legally en-
forceable  final permit issued pursuant  to section  3005 (a)
through (d) of the Solid Waste Disposal Act from a hazardous
waste treatment,  storage,  or disposal facility when such permit
specifically  identifies  the  hazardous  substances and  makes
such substances subject to a standard of practice, control proce-
dure or bioassay limitation or condition,  or other control on
the hazardous substances  in such  releases, (F)  any release in
compliance with a legally enforceable permit issued under sec-
tion 102 of section 103 of the Marine Protection, Research,  and
Sanctuaries Act of 1972, (G) any injection of fluids authorized
under Federal underground injection control programs or State
programs submitted for Federal approval (and not disapproved
by the Administrator of the Environmental Protection Agency)
pursuant to  part C of the  Safe Drinking  Water Act,  (H)  any
emission into the air subject to a permit or control regulation
under section 111, section 112, title I part C,  title I part D, or
State implementation plans submitted  in accordance with sec-
tion 110 of the Clean Air Act (and not  disapproved by the Ad-
ministrator of the  Environmental  Protection Agency).,  includ-
ing any schedule or waiver granted, promulgated, or approved
under these sections, (I) any injection of fluids or other  materi-
als authorized under applicable State law (i) for the purpose of
stimulating or treating wells for the  production of crude oil,
natural gas, or water, (ii) for the  purpose of secondary, terti-

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ary, or other enhanced recovery of crude oil or natural gas, or
(iii) which are brought to the surface in conjunction with the
production of crude oil or natural gas and which are reinject-
ed, (J) the introduction of any pollutant into a publicly owned
treatment works when such pollutant is specified  in  and in
compliance with applicable  pretreatment  standards of  section
307 (b) or (c) of the Clean Water Act and enforceable require-
ments in a pretreatment program submitted by a State or mu-
nicipality for Federal approval under section 402 of such Act,
and (K)  any release of source,  special nuclear, or  byproduct
material, as those terms are defined in the Atomic Energy Act
of  1954, in  compliance  with  a  legally  enforceable  license,
permit,  regulation, or order issued pursuant  to  the Atomic
Energy Act of 1954 [;].
  C(1D The term "Fund" or "Trust  Fund" means  the Hazard-
ous Substance Response Fund established by section 221 of this
Act or,  in the case of a hazardous  waste disposal facility for
which liability has been  transferred under section 107(k) of
this Act, the Post-closure Liability Fund established by  section
232 of this Act;}
  (11) The term ''Fund" or "Trust Fund1' means the Hazardous
Substance Superfund established by section 9507 of the Internal
Revenue  Code of 1986.
  (12) The term  "ground  water" means water in  a saturated
zone or stratum beneath the surface of land or water £;1.
  (13) The term "guarantor" means any person, other than the
owner or operator, who provides evidence of financial responsi-
bility for an owner or operator under this Act£;].
  (14) The term "hazardous substance" means (A) any sub-
stance designated pursuant to section 311(bX2XA) of the Feder-
al Water Pollution Control Act, (B) any  element, compound,
mixture, solution, or substance designated pursuant to  section
102 of this Act, (C) any hazardous waste having the character-
istics  identified under or listed pursuant to section 3001 of the
Solid  Waste Disposal Act (but not including any waste the reg-
ulation of which under the Solid Waste Disposal Act has been
suspended by Act of Congress), (D) any toxic pollutant listed
under section 307(a) of the Federal Water Pollution  Control
Act, (E) any hazardous air pollutant listed under section 112 of
the Clean Air Act, and (F) any imminently hazardous chemical
substance or mixture with respect to which the Administrator
has taken action pursuant to section 7 of the Toxic Substances
Control Act. The term does not include petroleum, including
crude oil or any fraction thereof which is not otherwise specifi-
cally  listed or designated as a hazardous substance under sub-
paragraphs  (A)  through  (F) of this paragraph,  and the term
does not include natural gas, natural gas liquids, liquefied nat-
ural gas, or synthetic gas usable for fuel (or mixtures of natu-
ral gas and such synthetic gas)[;].
  (15) The term "navigable waters" or "navigable waters of the
United States" means the waters of the United States, includ-
ing the territorial seas[;].
  (16) The term  "natural  resources" means land, fish, wildlife,
biota, air, water, ground water,  drinking water supplies,  and

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other such resources belonging to, managed by, held in  trust
by, appertaining to, or otherwise controlled  by the  United
States (including the resources of the fishery conservation zone
established by the Fishery Conservation and Management Act
of 1976), any State or local government,  [or] any foreign gov-
ernment [.j, any Indian tribe, or, if such resources are subject
to a trust restriction on alienation, any member of an Indian
tribe.
  (17) The term "offshore  facility" means any  facility of any
kind located in, on,  or under, any of the navigable waters of
the United States, and any facility of any kind which  is subject
to the jurisdiction of the United States and is located  in, on, or
under any  other waters,  other  than  a  vessel or  a public
vessel [;1.
  (18) The term "onshore facility" means any facility (includ-
ing, but not limited to, motor vehicles and rolling stock) of any
kind located in, on, or under, any land or nonnavigable waters
within the United States C;].
  (19) The term "otherwise subject to  the jurisdiction of the
United States" means subject to the jurisdiction of the United
States by virtue of United States citizenship. United States
vessel documentation or numbering, or as provided by interna-
tional agreement to which the United States is a party [;].
  (20XA) The term "owner or operator"  means (i) in the case of
a  vessel,  any person  owning, operating, or  chartering  by
demise, such vessel,  (ii) in the case of an onshore facility or an
offshore facility, any person owning or  operating such facility,
and [(iii) in the case  of any abandoned  facility,  any person
who owned, operated, or otherwise controlled activities at such
facility  immediately prior to such abandonment.  Such  term
does not include a person, who, without participating in the
management of a vessel or facility, holds indicia of ownership
primarily to protect his security interest in the  vessel or facili-
ty;] (Hi) in  the case of any facility, title or control of which was
conveyed due to bankruptcy, foreclosure, tax delinquency, aban-
donment,  or similar means to a  unit of State or local govern-
ment, any person who owned, operated, or otherwise controlled
activities at such facility immediately beforehand.
   (B) [in]  In the case of a hazardous substance which has
been accepted for transportation  by a common or contract car-
rier and except as provided in section 107(a) (3) or (4) of this
Act, (i) the term "owner or operator" shall mean such common
carrier or other bona fide for hire carrier acting  asi an  inde-
pendent contractor during such transportation, (h) the shipper
of such hazardous substance shall not be  considered to have
caused  or contributed  to any release during such transporta-
tion  which resulted solely from circumstances or conditions
beyond his control [;].
   (C) [in] In  the  case of a hazardous substance which has
been delivered by a  common or contract carrier to a disposal or
treatment facility and except as provided in section 107(a) (3)
or (4) (i) the term "owner or operator" shall not include such
common or contract carrier, and (ii) such common or contract
carrier shall not be  considered to have caused or contributed to

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any release  at  such disposal  or treatment facility resulting
from circumstances or conditions beyond its control r;].
  (D) The term  "owner or operator  does not include a unit of
State or local government which acquired ownership or control
involuntarily through bankruptcy, tax delinquency, abandon-
ment, or other circumstances in which the government involun-
tarily acquires title  by virtue of its function as sovereign. The
exclusion provided under this paragraph shall not apply to any
State or local government  which has caused or contributed to
the release or threatened release of a hazardous substance from
the facility, and such a State or local government shall be sub-
ject to the provisions of this Act in the same manner and to  the
same extent, both procedurally and  substantively, as any non-
governmental entity,  including liability under section 107.
  (21) The term "person" means an individual, firm, corpora-
tion, association, partnership,  consortium, joint venture, com-
mercial entity, United States Government, State, municipality,
commission,  political subdivision of a State, or any interstate
body[;T
  (22) The term "release"  means any spilling, leaking,  pump-
ing, pouring, emitting, emptying, discharging, injecting, escap-
ing, leaching, dumping, or disposing into the environment (in-
cluding the abandonment or discarding of barrels,  containers,
and other closed receptacles containing any  hazardous sub-
stance or pollutant  or contaminant), but excludes (A) any re-
lease which results  in  exposure to persons solely within a
workplace, with respect to a  claim which such persons may
assert against the employer of such persons, (B) emissions from
the engine exhaust  of a motor vehicle,  rolling stock, aircraft,
vessel,  or  pipeline  pumping  station engine, (C)  release  of
source,  byproduct, or special nuclear material from a nuclear
incident, as those terms are defined in the Atomic Energy Act
of 1954, if such  release is subject to requirements with respect
to financial  protection established by the Nuclear Regulatory
Commission  under section  170  of such Act, or, for the  purposes
of section 104 of this title or any other response action, any re-
lease of source byproduct, or special nuclear material from any
processing site  designated under section 102(aXD or  302(a) of
the Uranium Mill Tailings Radiation Control Act of 1978, and
(D) the normal application of fertilizer [;].
  (23) The terms remove" or "removal"  means the  cleanup or
removal of released hazardous substances from  the  environ-
ment, such actions as may be necessary  taken in the event of
the threat of release of hazardous substances into the environ-
ment, such actions as  may be necessary to monitor,  assess, and
evaluate the release  or threat  of  release of hazardous sub-
stances,  the disposal of removed material, or the taking of such
other actions as may  be  necessary  to  prevent, minimize,  or
mitigate damage to  the public  health or welfare or to  the envi-
ronment, which may otherwise result from a release or threat
of release. The  term includes,  in addition, without being limit-
ed  to, security fencing or other measures to limit access, provi-
sion of alternative water supplies, temporary evacuation and
housing of threatened individuals not otherwise provided for,

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action taken under section 104(b) of this Act, and any emergen-
cy assistance which may be provided under the Disaster Relief
Act of 19741; J.
  (24) The terms "remedy" or  "remedial action" means those
actions consistent with permanent remedy taken instead of or
in addition to removal  actions in the event  of a  release or
threatened release of a hazardous substance into the environ-
ment, to  prevent or  minimize the  release of hazardous  sub-
stances so that they do not migrate to cause substantial danger
to present or  future public health or welfare or the environ-
ment. The term includes, but is not limited to, such actions at
the location of the release as storage, confinement, perimeter
protection using dikes, trenches, or ditches, clay cover, neutral-
ization, cleanup of released hazardous substances  [or j and as-
sociated contaminated materials, recycling or reuse, diversion,
destruction, segregation of reactive wastes, dredging or excava-
tions, repair or replacement of leaking containers, collection of
leachate and runoff, onsite treatment or incineration, provision
of alternative water supplies, and any monitoring reasonably
required to assure that such actions protect the public health.
and welfare and the environment. The term includes the costs
of permanent relocation of residents and businesses and com-
munity facilities where the President determines that, alone or
in combination  with  other measures, such relocation is more
cost-effective  than and  environmentally  preferable  to  the
transportation, storage, treatment, destruction, or secure dispo-
sition offsite of hazardous substances, or may otherwise be nec-
essary to  protect the  public health or [welfare. The terra does
not include offsite transport of hazardous substances, or the
storage, treatment, destruction, or secure disposition offsite of
such  hazardous  substances or contaminated materials  unless
the President determines that such actions  (A) are more  cost-
effective  than other  remedial  actions, (B) will create new ca-
pacity to manage, in  compliance  with subtitle C of the Solid
Waste Disposal Act, hazardous substances in addition to those
located at the affected facility, or (C) are necessary to protect
public health or welfare or the environment from a present or
potential risk which may be created by further exposure to the
continued presence of such substances or materials;] welfare;
the term includes offsite transport and offsite  storage,  treat-
ment, destruction, or secure disposition of hazardous substances
and associated contaminated materials.
   (25) The terms "respond" or "response" means remove, re-
moval, remedy, and remedial action, all such terms (including
the terms "removal" and "remedial action") include enforce-
ment activities related thereto [;].
   (26) The terms "transport"  or  "transportation"  means the
movement of a hazardous substance by any mode, including
pipeline (as defined in the Pipeline Safety Act), and in the case
of a hazardous substance which has been accepted for transpor-
tation by a common or contract  carrier, the term "transport"
 or "transportation" shall include  any stoppage in transit which
 is temporary, incidental to the transportation movement, and
 at the ordinary operating convenience of a common or contract

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carrier, and any such stoppage shall be considered as  a conti-
nuity of movement and not as the storage of a hazardous sub-
stance [;].
  (27) The terms "United States"  and "State" include  the sev-
eral States of the  United States, the District of Columbia, the
Commonwealth  of Puerto Rico, Guam,  American Samoa, the
United States Virgin Islands, the Commonwealth of the North-
ern Marianas, and any other territory or possession over which
the United States  has jurisdiction [;].
  (28) The term  "vessel" means every description of watercraft
or other artificial contrivance used, or capable of being  used, as
a means of transportation on water [;].
  (29) The terms  "disposal",  "hazardous waste",  and  "treat-
ment" shall have  the meaning provided in  section 1004 of the
Solid Waste Disposal Act[;].
  (30) The terms "territorial sea" and "contiguous zone" shall
have the meaning provided in section 502 of the Federal Water
Pollution Control Act.
  (31) The term  "national contingency plan" means the nation-
al contingency plan published  under section 311(c) of the Fed-
eral Water Pollution Control Act or revised  pursuant to section
105 of this Act[; and].
  (32) The terms "liable" or "liability" under this title  shall  be
construed to be the standard of liability which obtains under
section 311 of the Federal Water Pollution Control  Act.
  (33) The term  "pollutant or contaminant" shall  include, but
not  be limited to, any element, substance,  compound,  or mix-
ture, including disease-causing agents, which after release into
the environment and upon exposure,  ingestion, inhalation,  or
assimilation  into  any organism, either directly from the envi-
ronment or indirectly by ingestion through food chains, will or
may reasonably  be anticipated to cause death,  disease, behavior-
al abnormalities,  cancer, genetic  mutation, physiological mal-
functions  (including malfunctions in reproduction) or physical
deformations, in such organisms or their offspring; except  that
the term "pollutant or contaminant" shall  not include petrole-
um, including crude oil or any fraction thereof which is not
otherwise specifically listed or designated as  a  hazardous sub-
stance under subparagraphs (A) through (F) of paragraph (14)
and shall not include natural gas, liquefied natural gas, or syn-
thetic gas of pipeline quality (or  mixtures  of natural gas and
such synthetic gas).
  (34) The term  "alternative water supplies" includes, but is not
limited to, drinking water and household water supplies.
  (35XA)  The term "contractual relationship", for the  purpose
of section  107(bX3),  includes,  but is  not limited to,  land  con-
tracts, deeds or other instruments transferring title or posses-
sion, unless the  real property on which the facility concerned is
located was  acquired by the defendant after the disposal  or
placement of the hazardous substance on, in,  or at the  facility,
and one or more of the circumstances described in clause (i), (ii),
or (Hi) is  also established by the defendant  by a preponderance
of the evidence:

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                            8

      (i) At the time the defendant acquired the facility the de-
    fendant did not know and had no reason to know that any
    hazardous substance which is the subject of the release or
    threatened release was disposed of on, in, or at the facility.
      (ii) The defendant is a government entity which acquired
    the facility by escheat, or through  any other involuntary
    transfer or acquisition, or through the exercise of eminent
    domain authority by purchase or condemnation.
      (Hi) The defendant acquired the facility by inheritance or
    bequest.
In addition to establishing the foregoing, the defendant must
establish  that he  has  satisfied  the  requirements of section
107(bX3) (a) and (b).
  (B) To establish that the defendant had no reason  to know, as
provided  in clause (i) of subparagraph  (A) of this  paragraph,
the defendant must have undertaken, at  the time of acquisition,
all appropriate inquiry into the previous ownership and uses of
the property  consistent with  good commercial or customary
practice in an effort to minimize  liability. For purposes of the
preceding sentence the court shall take into account any special-
ized knowledge or experience on the part of the defendant, the
relationship of the purchase price to the  value of the property if
uncontaminated,  commonly known or reasonably ascertainable
information about the property, the obviousness of the presence
or likely presence of contamination at  the property,  and the
ability to detect such contamination by  appropriate inspection.
  (C) Nothing in  this paragraph or in section 107(bX3) shall di-
minish the  liability of any previous owner or operator of such
facility who would otherwise be liable under this Act. Notwith-
standing this paragraph,  if  the  defendant  obtained actual
knowledge of the release or threatened  release of a hazardous
substance at such facility when the defendant owned the  real
property and then subsequently transferred  ownership of the
property to  another person without disclosing such knowledge,
such  defendant shall be treated as liable under section 107(aXl)
and no defense under section 107(bX3) shall be available to such
defendant.
   (D) Nothing in this paragraph shall affect the liability under
this Act of a  defendant who, by any act or omission, caused or
contributed to the release or threatened release of a hazardous
substance.
   (36) The term  "Indian tribe" means any Indian  tribe, band,
nation, or other  organized group  or community, including any
Alaska Native village but not including any Alaska Native re-
gional or village corporation, which is recognized as eligible for
 the special programs and services provided by the United States
 to Indians because of their status as Indians.
   (37XA) The term  service station dealer" means any person—
       (i) who owns or operates a motor vehicle service station,
     filling station, garage, or similar retail establishment en-
     gaged  in the  business  of selling,  repairing,  or servicing
     motor vehicles, where a significant percentage  of the gross
     revenue of the establishment is derived from the fueling, re-
     pairing, or servicing of motor vehicles, and

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          (ii) who accepts for collection, accumulation, and delivery
        to an oil recycling facility, recycled oil that (I) has been re-
        moved from  the  engine of a light  duty motor vehicle or
        household appliances 'by the owner of such vehicle or appli-
        ances, and (II) is presented, by such  owner, to such person
        for collection, accumulation,  and delivery to an oil recy-
        cling facility.
      (B) For purposes of section 114(c), the term  "service  station
    dealer" shall, notwithstanding  the provisions of subparagraph
    (A), include any government agency  that establishes a facility
    solely for the purpose of accepting recycled oil that satisfies the
    criteria set  forth  in  subclauses (I) and (II) of subparagraph
    (AXU), and,  with respect to recycled oil that satisfies the criteria
    set forth in subclauses (I) and (II), owners or operators of refuse
    collection services who are  compelled by State law to collect, ac-
    cumulate, and deliver such oil to an oil recycling facility.
      (C) The President shall promulgate regulations  regarding the
    determination of what constitutes a significant  percentage of
    the gross revenues of an establishment for purposes of this para-
    graph.
      (38) The term "incineration  vessel" means any  vessel  which
    carries hazardous substances for the purpose of incineration of
    such substances, so long as such substances or residues of such
    substances are on boar
       REPORTABLE QUANTITIES AND ADDITIONAL DESIGNATIONS

  SEC. 102.  (a) The Administrator shall  promulgate and revise as
may  be  appropriate,  regulations  designating as  hazardous sub-
stances, in addition to those referred to in section 101(14) of this
title,  such  elements,  compounds,  mixtures,  solutions,  and sub-
stances which, when  released into the environment may present
substantial  danger to  the public health or welfare or the environ-
ment, and shall promulgate regulations establishing that quantity
of any hazardous substance the release of which shall be reported
pursuant  to section 103 of this title. The Administrator may deter-
mine that one single quantity shall be the reportable quantity  for
any hazardous substance, regardless of the medium into which the
hazardous substance is released. For  all hazardous substances  for
which proposed regulations  establishing  reportable quantities were
published in the Federal Register under this subsection on or before
March 1,  1986, the Administrator shall promulgate under this sub-
section final regulations establishing reportable quantities not later
than  December 31, 1986. For all hazardous substances for which
proposed  regulations  establishing  reportable  quantities  were not
published in the Federal Register under this subsection on or before
March 1,  1986,  the Administrator shall publish under  this subsec-
tion proposed regulations  establishing reportable quantities not later
than  December 31, 1986, and promulgate final regulations under
this  subsection establishing reportable quantities not  later than
April 30,  1988.
  (b)  Unless and until superseded by regulations establishing a re-
portable quantity under  subsection (a) of this section for any haz-
ardous substance as defined in section  101(14) of this  title, (1) a

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                               10

quantity of one pound, or (2)  for those hazardous  substances  for
which reportable quantities have been established pursuant to sec-
tion 311(bX4) of the Federal Water Pollution Control Act, such re-
portable quantity, shall be deemed that quantity,  the release  of
which requires notification pursuant to section 103 (a) or (b) of this
title.

                       NOTICES, PENALTIES

  SEC. 103. (a) Any person in charge of a vessel or an offshore or an
onshore facility shall, as soon as he has knowledge  of any release
(other than a federally permitted release) of a hazardous substance
from such vessel or facility in quantities equal to or greater than
those determined pursuant to section 102 of this title, immediately
notify the National Response Center established under the Clean
Water  Act  of such release. The National  Response Center  shall
convey  the notification expeditiously to all  appropriate Govern-
ment agencies, including the Governor of any affected State.
  (b) Any person—
      (1) in charge of a vessel from which a hazardous substance is
    released, other than a federally permitted release, into or upon
    the navigable waters of the United States, adjoining shorelines,
    or into or upon the waters of the contiguous zone, or
      (2) in charge of a vessel from which a hazardous substance is
    released, other than a federally permitted release, which may
    affect natural resources belonging to, appertaining to, or under
    the  exclusive management  authority  of the  United  States
    (including resources under the Fishery  Conservation  and Man-
    agement Act of 1976), and who is otherwise subject to the juris-
    diction of the United States at the time of the release, or
      (3)  in charge of a facility from which a hazardous  substance
    is released, other than a federally permitted release
in a quantity equal to or greater than that determined pursuant to
section  102 of this title who fails to notify  immediately the appro-
priate agency of the United States Government as  soon  as he has
knowledge of such release or  who submits in such a notification
any information which he knows to be false and misleading shall,
upon conviction, be fined [not more than $10,000 or imprisoned for
not more than one year, or both] in accordance with the applicable
provisions of  title 18 of the  United States  Code or  imprisoned for
not more than 3 years (or not more than 5 years in the case of a
second or subsequent conviction}, or both. Notification received pur-
suant to  this [paragraph} subsection  or information  obtained  by
the exploitation of such notification shall not be used against any
such person in any criminal case, except a prosecution for perjury
or  for giving a false statement.
  (c) Within one hundred and eighty days after the enactment of
this Act, any person who  owns or operates or who at the time of
disposal owned or operated, or who accepted  hazardous substances
for transport  and selected, a facility at which hazardous substances
(as defined in  section 10K14XC) of this title) are or have been
stored,  treated,  or disposed  of  shall,  unless such facility has a
permit issued under,  or has  been accorded interim status under,
subtitle C of the Solid Waste Disposal Act, notify the Administrator

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                               11

of the Environmental Protection  Agency of the existence  of such
facility, specifying the amount and type of any hazardous  sub-
stance to  be found there, and any known, suspected, or likely re-
leases of  such substances from such facility. The Administrator
may prescribe in greater detail the manner and form of the notice
and  the information  included. The Administrator shall notify the
affected State agency, or any  department designated by the Gover-
nor  to receive such notice, of the existence of such  facility. Any
person who knowingly fails to notify the Administrator of the ex-
istence of any such  facility shall, upon conviction,  be fined not
more than $10,000, or imprisoned for not more than one year,  or
both. In addition, any such person who knowingly fails to  provide
the notice required by this subsection shall not be entitled to any
limitation of liability or to any defenses to liability set out in sec-
tion  107 of this Act: Provided,  however, That notification under this
subsection is not required for any facility which  would be report-
able hereunder solely as a result  of any stoppage in transit which
is temporary, incidental to the transportation movement, or at the
ordinary operating convenience of a common or  contract  carrier,
and  such stoppage shall be considered as a continuity of movement
and  not as the storage of a hazardous  substance. Notification re-
ceived pursuant to this subsection or information obtained by the
exploitation of such notification shall not be used  against any such
person in  any criminal case, except a prosecution for perjury or for
giving a false statement.
  (dXD The Administrator of the Environmental Protection Agency
is authorized to promulgate rules and regulations specifying, with
respect to—
      (A)  the location, title, or condition of a facility, and
      (B)  the identity, characteristics, quantity, origin, or condition
    (including containerization and previous treatment) of any haz-
     ardous substances contained or deposited in a  facility;
the records which shall be retained by  any person required to pro-
vide the notification of a facility set out in subsection (c) of this sec-
tion. Such specification shall  be in accordance with the provisions
of this subsection.
  (2) Beginning with the date of enactment of this Act, for fifty
years thereafter or for fifty years after the date of establishment of
a  record  (whichever is  later), or at any such earlier time as a
waiver if obtained under paragraph  (3) of this subsection,  it shall
be unlawful for  any such person knowingly to destroy, mutilate,
erase, dispose of, conceal, or  otherwise render unavailable or un-
readable or falsify any records identified in paragraph (1) of this
subsection.  Any  person who  violates this  paragraph shall,  upon
conviction, be fined  [not more than $20,000, or imprisoned for not
more than  one year,  or both] in accordance with the applicable
provisions of title 18 of the United States Code or imprisoned for
not  more  than 3 years (or not more  than 5 years  in  me case  of a
second or subsequent conviction), or both.
  (3) At any time prior to  the date which occurs fifty years after
the  date  of enactment  of  this Act, any person  identified under
paragraph (1) of this subsection may apply to the Administrator of
the  Environmental  Protection Agency  for a waiver  of the provi-
sions of the first sentence of paragraph (2) of this subsection. The

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                               12

Administrator is authorized to grant such waiver if, in his discre-
tion, such waiver would not unreasonably interfere with the attain-
ment of the purposes and provisions of this Act. The Administrator
shall promulgate rules and regulations regarding such a waiver so
as to inform parties of the proper application procedure and condi-
tions for approval of such a waiver.
  (4) Notwithstanding the provisions of this subsection, the Admin-
istrator of the Environmental Protection Agency may in his discre-
tion require any such person to retain any record identified pursu-
ant to paragraph (1) of this subsection for such a time period in
excess  of the period specified in paragraph (2) of this subsection as
the Administrator determines to be necessary to protect the public
health or welfare.
  (e) This section shall not apply to the application of a  pesticide
product registered  under the  Federal  Insecticide, Fungicide, and
Rodenticide Act or  to the handling and storage of such a  pesticide
product by an agricultural producer.
  (f) No notification shall be  required under subsection (a) or (b) of
this section for any release of a hazardous substance—
      (1) which is required to be reported (or specifically exempted
    from a requirement for reporting) under subtitle C of the Solid
    Waste Disposal Act or regulations thereunder and which  has
    been reported to the National Response Center, or
      (2) which is a continuous release, stable in quantity and rate,
    and is—
          (A) from a facility for which notification has been  given
        under subsection (c) of this section, or
          (B) a release of which notification has been given under
        subsections (a) and (b) of this section for a period sufficient
        to establish the continuity, quantity, and  regularity of
        such release:
    Provided, That notification in accordance with subsections (a)
    and (b) of this  paragraph shall be given for releases subject to
    this paragraph annually, or at such time as there  is any statis-
    tically significant increase in the quantity of any hazardous
    substance or constituent thereof released, above that previous-
    ly reported or occurring.

                      RESPONSE AUTHORITIES

  SEC. 104. (aXD Whenever (A) any hazardous substance is released
or there is a substantial threat of such a release into the environ-
ment,  or (B) there  is a release or substantial threat of release into
the environment of any pollutant  or contaminant  which may
present an imminent and substantial danger to the public health
or  welfare, the President is  authorized to act, consistent  with  the
national contingency plan, to remove or arrange for the removal of,
and provide, for  remedial action relating to such hazardous sub-
stance, pollutant, or contaminant at any time (including its remov-
al from any contaminated natural resource), or take any  other re-
sponse measure consistent  with  the  national contingency plan
which the President deems necessary to protect the public health
or  welfare or the environment!, unless  the President determines
that such removal and  remedial action will be done properly by the

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                               13

owner or operator of the vessel or facility from which the release
or threat of release emanates, or by any other responsible party!.
When the President determines that such action will be done proper-
ly and promptly by the owner or operator of the facility or vessel or
by any other responsible party, the President may allow such person
to carry out the action, conduct the remedial investigation,  or con-
duct the feasibility study in accordance with section 122. No remedi-
al investigation  or feasibility study  (RI/FS) shall be authorized
except on a determination by the  President that the party is quali-
fied to conduct the RI/FS and only if the President contracts with
or arranges for a qualified person to assist the President in oversee-
ing and reviewing the conduct of such RI/FS and if the responsible
party agrees to  reimburse the Fund for any cost incurred by  the
President under,  or in connection  with, the oversight contract or ar-
rangement.  In no event shall a potentially responsible party be sub-
ject to a lesser standard of liability, receive preferential treatment,
or in any other  way,  whether direct  or indirect, benefit from any
such arrangements as a response action contractor, or as a person
hired or retained by such a response action contractor, with respect
to the release or facility in question.  The President shall give pri-
mary attention  to those releases  which the President deems  may
present a public health threat.
   [(2) For the purposes of this section, "pollutant or contaminant"
shall include, but not be limited to, any element,  substance, com-
pound, or mixture, including disease-causing agents, which after re-
lease into the environment and  upon exposure, ingestion,  inhala-
tion, or assimilation into any organism, either directly from the en-
vironment  or indirectly by ingestion through  food chains, will  or
may reasonably  be anticipated to cause death, disease,  behavioral
abnormalities, cancer, genetic mutation, physiological malfunctions
(including malfunctions in  reproduction) or physical deformations,
in such organisms or their offspring. The term does not include pe-
troleum, including crude oil and  any fraction thereof which is not
otherwise specifically listed or designated as hazardous  substances
under section 101(14) (A) through (F) of this title, nor  does  it in-
clude natural gas, liquefied natural gas, or synthetic gas of pipeline
quality (or mixtures of natural gas and such synthetic gas).]
   (2) REMOVAL  ACTION.—Any removal action undertaken by  the
President under this subsection (or by any other person referred to in
section 122) should, to the extent the President deems practicable,
contribute to the efficient performance of any long term remedial
action with respect to the release or threatened release concerned.
   (3) LIMITATIONS ON RESPONSE.—The President shall not provide
for a removal or remedial action  under this section in  response to a
release or threat of release—
       (A) of a naturally occurring substance in its unaltered form,
     or  altered solely through  naturally occurring processes or phe-
     nomena, from a location where it  is naturally found;
       (B) from  products which are part of the structure of,  and
     result in exposure within, residential buildings or business or
     community structures; or
       (C) into public or private drinking water supplies due to dete-
     rioration of the system through ordinary use.

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                               14

  (4) EXCEPTION TO LIMITATIONS.—Notwithstanding paragraph (3)
of this subsection, to the extent authorized by this section, the Presi-
dent may respond to any release or  threat of release if in the Presi-
dent's  discretion, it  constitutes  a public  health or  environmental
emergency and no other person with the authority and capability to
respond to the emergency will do so  in a timely manner.
  (bY7; INFORMATION; STUDIES AND  INVESTIGATIONS.— Whenever
the President is authorized to act pursuant to subsection (a) of this
section, or whenever the President  has reason to believe that a re-
lease has occurred or is  about to occur, or that illness,, disease, or
complaints thereof may be attributable to exposure to a hazardous
substance, pollutant, or contaminant  and that a release may have
occurred or be occurring, he may  undertake such  investigations,
monitoring, surveys, testing, and other information gathering as he
may deem necessary or  appropriate  to identify the existence and
extent of the release or threat thereof, the source and nature of the
hazardous substances, pollutants or contaminants involved, and the
extent of danger to the public health or welfare or to the environ-
ment.  In addition,  the President  may undertake such planning,
legal, fiscal, economic, engineering,  architectural, and other studies
or investigations as he may deem necessary or appropriate to plan
and direct response actions, to recover the costs thereof, and to en-
force the provisions of this Act.
  (2)  COORDINATION  OF INVESTIGATIONS.—The  President  shall
promptly notify the appropriate  Federal and State natural resource
trustees of potential damages to  natural resources resulting from re-
leases under investigation pursuant to this section and shall seek to
coordinate the assessments, investigations, and planning under this
section with such Federal and State trustees.
  (cXD Unless (A) the President finds that (i) continued response
actions are immediately required to prevent, limit, or mitigate an
emergency, (ii) there is an immediate risk to public health or wel-
fare or the environment, and (iii) such assistance will not otherwise
be provided on a timely  basis, or (B)  the President has determined
the appropriate remedial actions pursuant to paragraph (2) of this
subsection and the State or States in which the source of the re-
lease is located have complied with the requirements of paragraph
(3) of this subsection, or (C) continued response action is otherwise
appropriate and consistent with the remedial action to be taken ob-
ligations from the Fund, other than those authorized by subsection
(b) of this section, shall not continue after C$l,000,000]| $2,000,000
has been obligated for response  actions or [six months] 12 months
has elapsed from the date of initial response to a release or threat-
ened release of hazardous substances.
  (2) The President shall consult with the affected State  or States
before determining  any appropriate remedial action to  be taken
pursuant to the authority granted  under subsection (a) of this sec-
tion.
   (3) The President shall not provide any remedial actions pursu-
ant to this section unless the State  in which the release occurs first
enters into a contract or cooperative  agreement with the President
providing assurances deemed adequate by the President  that (A)
the State will assure all future maintenance of the removal and re-
medial actions provided for the expected life of such actions as de-

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                               15

termined by the President; (B) the State will assure the availability
of a hazardous waste disposal facility acceptable to the President
and in compliance with the requirements of subtitle C of the Solid
Waste Disposal  Act for any necessary offsite storage, destruction,
treatment, or secure disposition of the  hazardous substances; and
(C) the State will pay or assure payment of (i) 10 per centum of the
costs  of the remedial action,  including  all  future maintenance, or
[(ii) at least 50 per centum or such greater amount as the Presi-
dent may determine appropriate, taking into account the degree of
responsibility of the State or  political subdivision, of any sums ex-
pended in response to a release at a facility that was owned at the
time of any disposal of hazardous substances therein by the State
or  a  political subdivision thereof. The President shall  grant  the
State a credit against the share of the costs for which it is responsi-
ble under this paragraph for any  documented direct out-of-pocket
non-Federal funds expended or obligated by the State or a political
subdivision  thereof  after  January 1, 1978, and before the  date of
enactment of this Act for cost-eligible response actions and claims
for damages compensable under section 111 of this  title relating to
the specific  release in question:  Provided,  however, That in  no
event shall  the amount of the  credit granted exceed the total re-
sponse costs relating to the release.] (ii) 50 percent (or such greater
amount as the President may  determine appropriate, taking  into ac-
count the degree of responsibility of the State or political subdivi-
sion for the  release) of any sums expended in response to a release at
a facility, that was operated by the State or a political subdivision
thereof, either directly or  through a contractual relationship or oth-
erwise, at the time of any disposal of hazardous substances therein.
For the purpose of clause  (ii) of this subparagraph, the term  "facili-
ty" does not include navigable waters or the beds underlying those
waters. In the case of remedial action to be taken on land or water
held by an Indian tribe, held  by the United States in trust for Indi-
ans, held by a member of an  Indian tribe (if such land or water is
subject to a trust restriction on alienation), or otherwise within the
borders of an Indian reservation, the requirements of this paragraph
for assurances regarding future maintenance and cost-sharing shall
not apply, and the President shall provide the assurance required by
this paragraph regarding the  availability of a hazardous waste dis-
posal facility.
   [(4) The  President shall select appropriate remedial actions de-
termined to be necessary to carry  out this  section which are to the
extent  practicable  in accordance with the national contingency
plan  and which provide for that cost-effective  response which pro-
vides a balance between the need for  protection of public health
and welfare and the environment at the  facility  under consider-
ation, and the availability of amounts from the Fund established
under title II of this Act  to respond to other sites which present or
may  present a  threat to public health or  welfare or the environ-
ment, taking into consideration the need for immediate action.]
   (4) SELECTION OF REMEDIAL ACTION.—The President shall select
remedial actions to carry  out  this section in accordance with section
121 of this Act (relating to cleanup standards).
   (5) STATE CREDITS.—

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                              16

      (A) GRANTING OF CREDIT.—The President shall grant a State
    a credit against the share of the costs, for which it is responsi-
    ble under paragraph (3) with respect to a facility listed on the
    National Priorities List under the National Contingency Plan,
    for amounts expended by a State for remedial action at such fa-
    cility pursuant to a contract or cooperative agreement with the
    President. The credit under this paragraph shall be limited to
    those State expenses which the President determines to be  rea-
    sonable, documented,  direct out-of-pocket  expenditures of non-
    Federal funds.
      (B) EXPENSES  BEFORE LISTING OR  AGREEMENT.—The  credit
    under this paragraph shall include expenses for remedial action
    at a facility incurred before the listing of the facility on the Na-
    tional Priorities List or before a contract or cooperative agree-
    ment is entered into under subsection (d) for the facility if—
         (i) after such expenses are incurred the facility  is listed
        on such list and a contract or cooperative agreement is en-
        tered into for the facility, and
         (ii) the President determines that such  expenses would
        have been credited to the State under  subparagraph (A)
        had the expenditures been made after listing of the facility
        on such list  and after the date on which such contract or
        cooperative agreement is entered into.
      (C) RESPONSE ACTIONS BETWEEN 1973 AND i98o.—The credit
    under this paragraph shall include funds expended or obligated
    by the  State or a political subdivision thereof after January 1,
    1978, and before December 11, 1980, for cost-eligible response ac-
    tions and claims for damages compensable under section 111.
      (D) STATE EXPENSES AFTER DECEMBER 11, 1980, IN EXCESS OF
    10 PERCENT OF COSTS.—The credit under  this paragraph shall
    include 90 percent of State  expenses  incurred  at a facility
    owned, but not operated, by such State or by a political subdivi-
    sion thereof. Such credit applies only to expenses incurred pur-
    suant to a contract or cooperative agreement under subsection
    (d) and only  to expenses incurred after December 11, 1980, but
    before the date of the enactment of this paragraph.
      (E)  ITEM-BY-ITEM APPROVAL.—In  the case  of expenditures
    made after the date of the enactment of this paragraph, the
    President may require prior approval of each item of expendi-
    ture as a condition of granting a credit under this paragraph.
      (F) USE OF CREDITS.—Credits granted under this paragraph
    for funds expended with respect to a facility may be used by the
    State to  reduce all or part of the share of costs otherwise re-
    quired to be paid by  the State under paragraph (3) in connec-
    tion  with remedial actions at  such  facility. If the amount of
    funds for which credit is allowed under this paragraph exceeds
    such share of costs for such  facility, the State may use the
    amount of such excess to reduce all or part of the share of such
    costs at other facilities in that State. A credit shall not entitle
    the State to any direct payment.
  (6)  OPERATION AND MAINTENANCE.—For the purposes  of para-
graph (3) of this  subsection, in the case of ground or surface water
contamination, completed  remedial action includes the completion
of treatment or other measures, whether taken onsite or offsite,  nee-

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                               17

essary to restore ground and surface water quality to a level that
assures protection  of human health and the environment. With  re-
spect to such measures, the operation of such  measures for a period
of up to 10 years after the construction or installation and com-
mencement of operation shall be considered remedial action. Activi-
ties required to maintain the effectiveness of such measures follow-
ing such period or the completion of remedial action, whichever is
earlier, shall be considered operation or maintenance.
  (7) LIMITATION  ON  SOURCE  OF FUNDS  FOR O&M.—During any
period after  the availability of funds received  by  the Hazardous
Substance Superfund established under subchapter A of chapter 98
of the Internal Revenue Code  of 1954 from tax  revenues or appro-
priations from general revenues, the Federal share of the payment of
the cost of operation or maintenance pursuant to paragraph (SXCXi)
or paragraph (6) of this subsection (relating to operation and  main-
tenance) shall be from funds received by the  Hazardous Substance
Superfund from amounts  recovered on behalf of such fund  under
this Act
  (8) RECONTRACTiNG.—The President is authorized  to undertake or
continue whatever interim  remedial  actions the President  deter-
mines to be appropriate to reduce risks to public  health or the envi-
ronment where the performance  of a complete  remedial action  re-
quires recontracting because of the discovery of sources, types,  or
quantities of hazardous substances not known at the time of entry
into the original contract. The total cost of interim actions under-
taken at  a facility pursuant  to  this paragraph shall not exceed
$2,000,000,
  (9) SITING.—Effective  3 years after the enactment of the Super-
fund Amendments and Reauthorization Act of 1986, the President
shall  not provide  any remedial  actions pursuant  to this section
unless the State in which the  release occurs first enters into a con-
tract or cooperative agreement with the President providing  assur-
ances deemed adequate by the President  that the State will assure
the availability of hazardous waste treatment or disposal facilities
which—
       (A) have adequate capacity for  the destruction, treatment, or
     secure disposition of all hazardous wastes that are reasonably
     expected to be generated within  the  State during  the 20-year
    period following the date of such contract or cooperative  agree-
     ment and to be disposed of, treated, or destroyed,
       (B) are within  the State or outside the State in accordance
     with  an interstate agreement or regional agreement or author-
     ity,
       (C) are acceptable to the  President, and
       (D) are in compliance with the requirements  of subtitle C of
     the Solid Waste Disposal Act.
   [(dXD Where the President determines that a State or political
subdivision thereof has the capability to carry out any or all of  the
actions authorized in  this section, the President may, in his discre-
tion,  enter into a  contract or cooperative agreement  with such
State or  political subdivision  to  take such actions in accordance
with criteria and  priorities established pursuant to  section 105(8) of
this  title and to  be reimbursed for the reasonable response costs

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                               18

thereof from the Fund. Any contract made hereunder shall be sub-
ject to the cost-sharing provisions of subsection (c) of this section.]
  (dXD COOPERATIVE AGREEMENTS.—
      (A) STATE APPLICATIONS.—A State or political subdivision
    thereof or Indian  tribe  may apply to the President to carry out
    actions authorized in this section. If the President determines
    that the State or political subdivision or Indian tribe has the
    capability to carry out any or all of such actions in accordance
    with  the criteria and priorities established pursuant  to section
    105(aX8) and to carry out related enforcement actions,  the Presi-
    dent  may enter into a  contract or cooperative agreement with
    the State or political subdivision or Indian tribe  to  carry out
    such actions. The President shall make a determination regard-
    ing such an application within 90 days after the President re-
    ceives the application.
      (B) TERMS AND CONDITIONS.—A  contract or cooperative  agree-
    ment under this paragraph shall  be subject to such  terms and
    conditions as the President may prescribe. The contract or coop-
    erative agreement  may cover a specific facility or specific  facili-
    ties.
      (C)  REIMBURSEMENTS.—Any State  which expended  funds
    during the period  beginning September 30, 1985, and ending on
    the date of the enactment of this subparagraph for response ac-
    tions at  any site included on  the National Priorities List and
    subject to a cooperative agreement under this Act shall be reim-
    bursed for the share of costs of such  actions for which the Fed-
    eral Government is responsible under this Act.
  (2)  If the President  enters into  a cost-sharing agreement pursu-
ant to  subsection (c)  of this  section  or  a contract or cooperative
agreement pursuant to this subsection,  and the State or political
subdivision thereof fails  to comply with any  requirements  of the
contract, the President may, after providing sixty days notice, seek
in the appropriate Federal  district court to enforce the contract or
to recover any funds advanced or any costs incurred because of the
breach of the contract by the State or political subdivision.
  (3)  Where a State or a political subdivision  thereof is acting in
behalf of the President, the President is authorized to provide tech-
nical and legal assistance in the administration and enforcement of
any contract or subcontract in connection with response  actions as-
sisted under this title, and to intervene in any civil action involv-
ing the enforcement of such contract or subcontract.
  (4)  Where two or more  noncontiguous facilities are reasonably re-
lated on  the basis of geography, or on the basis of the threat, or
potential threat to the public health or welfare or the environment,
the President may, in his discretion, treat these related facilities as
one for purposes of this section.
   [(eXl) For purposes of assisting in determining the need  for re-
sponse to a release under  this title or enforcing the provisions of
this title, any person who stores, treats, or disposes of,  or,  where
necessary to ascertain facts not available at the facility where such
hazardous substances are  located, who  generates,  transports, or
otherwise handles  or has handled,  hazardous substances  shall,
upon request  of any  officer,  employee, or representative  of  the
President, duly designated  by the  President, or upon request of any

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                               19

duly designated  officer, employee, or representative of a State,
where appropriate, furnish information relating to such substances
and permit such person at all reasonable times to have access to,
and to copy all records relating to such substances.  For the pur-
poses specified in the preceding sentence, such officers, employees,
or representatives are authorized—
      [(A) to  enter at reasonable times any establishment or other
    place where such hazardous substances are or have been gener-
    ated, stored, treated, or disposed of, or transported from;
      [(B) to  inspect and obtain samples from any person of  any
    such substance and samples of any containers or labeling for
    such substances. Each such inspection shall be commenced  and
    completed with reasonable promptness. If the officer,  employ-
    ee, or representative obtains any samples,  prior to leaving the
    premises,  he shall give  to the owner, operator,  or person in
    charge a receipt describing the sample  obtained and if request-
    ed a portion of each such sample equal in volume of weight to
    the portion retained. If any analysis is made of such samples, a
    copy of the results of such analysis shall be furnished promptly
    to the owner, operator, or person in charge.]
  (e) INFORMATION GATHERING AND ACCESS.—
      (1) ACTION AUTHORIZED.—Any officer, employee,  or representa-
    tive  of the President, duly designated  by  the President, is au-
    thorized to take action  under paragraph (2), (3), or (4) (or  any
    combination  thereof) at a vessel, facility,  establishment, place,
    property, or location or,  in the case of paragraph (3) or (4), at
    any  vessel, facility,  establishment, place,  property,  or  location
    which is  adjacent  to the  vessel, facility,  establishment, place,
    property,  or  location referred to in  such paragraph (3) or (4).
    Any duly  designated officer,  employee, or representative  of a
    State or political  subdivision  under a contract or  cooperative
    agreement under subsection  (d)(l) is  also authorized  to  take
    such action.  The authority of paragraphs (3) and (4) may be ex-
    ercised only if there is a reasonable basis to believe there may be
    a release or threat of release of a hazardous substance or pollut-
    ant or contaminant. The authority of this subsection may be ex-
    ercised only for the purposes of determining  the need for re-
    sponse, or choosing or  taking any response action  under  this
    title, or otherwise enforcing the provisions of this title.
      (2) ACCESS TO INFORMATION.—Any officer, employee, or repre-
    sentative  described  in paragraph (1)  may require  any person
    who has or may have information relevant to any  of the follow-
    ing  to  furnish, upon reasonable  notice,  information or docu-
    ments relating to such matter:
           (A) The  identification, nature, and quantity of materials
         which have been or  are generated, treated, stored, or  dis-
         posed of at a vessel or facility or transported  to a vessel or
         facility.
           (B) The nature or extent of a release or threatened release
         of a hazardous substance or pollutant or contaminant at or
         from  a vessel or facility.
           (C) Information relating to the ability of a  person to pay
         for or to perform a cleanup.

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                           20

In addition, upon reasonable notice, such person either (i) shall
grant any such officer, employee, or representative access at all
reasonable times to any  vessel,  facility, establishment, place,
property,  or  location  to  inspect and copy  all  documents  or
records relating to such matters or (ii) shall copy and furnish to
the officer, employee, or representative all such documents  or
records, at the option and expense of such person.
  (3) ENTRY.—Any officer, employee, or representative described
in paragraph (1)  is  authorized to enter at reasonable times any
of the following:
      (A) Any vessel, facility, establishment, or other place or
    property  where  any hazardous substance or pollutant  or
    contaminant may be or has been generated, stored, treated,
    disposed of, or transported from.
      (B) Any vessel, facility, establishment, or other place or
    property from which or to which a hazardous substance or
    pollutant or contaminant has been or may have been re-
    leased.
      (C) Any  vessel, facility, establishment, or other place or
    property where such release is or may be threatened.
      (D) Any vessel, facility, establishment, or other place or
    property where  entry is needed  to determine the need for re-
    sponse or  the appropriate response or to effectuate a re-
    sponse action under this title.
  (4) INSPECTION  AND SAMPLES.—
      (A) AUTHORITY.—Any officer, employee or representative
    described in paragraph (1)  is  authorized  to  inspect and
    obtain samples  from any vessel, facility, establishment, or
    other place or property referred to in paragraph (3) or from
    any location of any suspected  hazardous substance or pol-
    lutant or contaminant. Any such officer, employee, or repre-
    sentative is authorized to  inspect and obtain samples of any
    containers or labeling for suspected hazardous substances
    or pollutants or contaminants.  Each such inspection shall
    be completed with reasonable promptness.
      (B) SAMPLES.—If the officer, employee, or representative
    obtains any  samples, before leaving the premises he shall
    give  to  the  owner, operator,  tenant, or other person  in
    charge of the place from which the samples were obtained a
    receipt describing the sample obtained and,  if requested, a
    portion of each such sample. A copy  of the results of any
    analysis made  of such samples shall be furnished promptly
    to the owner, operator,  tenant, or  other person in charge,  if
    such person can be located.
   (5) COMPLIANCE ORDERS.—
       (A) ISSUANCE.—If consent is not  granted regarding any
    request  made   by  an officer,  employee, or representative
    under paragraph (2), (3),  or (4), the  President may issue an
    order directing compliance with the request.  The order may
     be issued after such notice and opportunity for consultation
    as is reasonably appropriate under the circumstances.
       (B) COMPLIANCE.—The President may ask the Attorney
     General to commence a civil action to  compel compliance
     with a  request or order referred to in subparagraph (A).

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                           21

    Where there is a reasonable basis to believe there may be a
    release or threat of a release of a hazardous substance or
    pollutant or contaminant,  the court shall  take the follow-
    ing actions:
          (i) In the case of interference with entry or inspection,
        the court shall enjoin  such interference  or direct com-
       pliance with orders to  prohibit interference with entry
        or inspection  unless under the circumstances  of the
        case the  demand for entry or inspection is  arbitrary
        and capricious, an abuse of discretion,  or otherwise not
        in accordance with law.
          (ii) In the case of information or document requests
        or orders, the court shall enjoin interference with such
        information or document requests or  orders or direct
        compliance with the requests or orders to provide such
        information or documents unless  under the circum-
        stances of the case the  demand for information or doc-
        uments is arbitrary and capricious, an abuse of discre-
        tion, or otherwise not in accordance with law.
    The court may assess a civil penalty not to exceed $25,000
    for each day of noncompliance against any person who un-
    reasonably fails to comply with the provisions of paragraph
    (2), (3), or (4) or an order issued pursuant to subpctragraph
    (A) of this paragraph.
  (6) OTHER AUTHORITY.—Nothing in this subsection shall pre-
clude the  President from securing access or obtaining  informa-
tion in any other lawful manner.
  [(2XA)]  (7) CONFIDENTIALITY OF INFORMATION.—(A) Any
records, reports,  or information  obtained from any  person
under  this section  (including records, reports, or information
obtained by representatives of the President) shall be available
to the public, except that upon a showing satisfactory  to the
President  (or the  State, as the case may be) by any person that
records, reports,  or information, or  particular  part  thereof
(other  than health or  safety effects data), to  which the Presi-
dent (or the State, as the case may be) or any officer, employee,
or representative has access under this section if made public
would  divulge information entitled to protection under section
1905 of title 18 of the United States Code, such information or
particular portion  thereof shall be considered confidential in
accordance with the purposes of that section, except that such
record, report, document or information may be disclosed to
other officers, employees, or authorized representatives of the
United States concerned  with  carrying out this Act,  or when
relevant in any proceeding under this Act.
  (B) Any person not subject to the provisions of section 1905
of title 18 of the United States Code who knowingly and will-
fully divulges or discloses any information entitled to  protec-
tion under this subsection shall, upon conviction, be subject to
a  fine of not more than $5,000  or to imprisonment  not to
exceed one year, or both.
  (C) In submitting data  under this Act, a person required to
provide such data may (i) designate the data which such  person
believes is entitled to  protection under this subsection and (ii)

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                              22

   submit such designated data separately from other data sub-
   mitted under this Act. A  designation  under this paragraph
   shall be made in writing and in such manner as the President
   may prescribe by regulation. .
     (D) Notwithstanding any  limitation contained in this section
   or any other provision of law, all information reported to or
   otherwise obtained by the President (or any representative of
   the President)  under this Act shall be made available, upon
   written request of any duly authorized  committee of the Con-
   gress, to such committee.
     (E) No person required to provide information under this Act
   may claim that the  information is entitled to protection  under
   this paragraph unless such person shows each of the following:
          (i) Such person has not disclosed  the information to any
       other person,  other than a member of a local  emergency
       planning committee established under title III of the
       Amendments and Reauthorization Act of 1986,  an officer
       or employee of the United States or a State or local govern-
       ment, an employee of such person, or a person who is bound
       by a confidentiality agreement, and such person has taken
       reasonable measures to protect  the  confidentiality of such
       information and intends to continue to take such measures.
          (ii) The information  is  not required  to be disclosed, or
       otherwise made available, to the public under any other
       Federal or State law.
          (Hi) Disclosure of the information is likely to  cause sub-
       stantial  harm to the competitive position of such person.
          (iv) The specific chemical identity, if sought to be protect-
       ed, is not readily discoverable through reverse engineering.
     (F) The following information with respect to any  hazardous
   substance at the facility or vessel shall not be entitled to protec-
   tion under this paragraph:
          (i) The trade name, common name, or generic class or cat-
       egory of the hazardous substance.
          (ii) The physical properties of the substance, including its
       boiling point, melting  point,  flash  point, specific gravity,
       vapor density, solubility in water, and vapor pressure at 20
       degrees Celsius.
          (Hi) The hazards to health and the environment posed by
       the substance, including physical hazards  (such as  explo-
       sion) and potential acute and chronic health hazards.
          (iv) The potential routes of human exposure to the  sub-
       stance  at  the facility,  establishment,  place,  or  property
        being investigated, entered, or inspected under this subsec-
        tion.
          (v) The location of disposal of any waste stream.
          (vi) Any monitoring data or analysis of monitoring data
       pertaining to disposal activities.
          (vii) Any hydrogeologic or geologic data.
          (viii) Any groundwater monitoring data.
  (f)  In awarding contracts to any person engaged in response ac-
tions, the President or the State, in any case where it is awarding
contracts pursuant to a contract entered into under subsection (d)
of this section, shall  require compliance with Federal health and

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                               23

safety standards established under section 301(f) of this Act by con-
tractors and subcontractors as a condition of such contracts.
  (gXD All laborers and mechanics employed by contractors or sub-
contractors in  the performance of  construction,  repair, or alter-
ation work funded in whole or  in part under this section shall be
paid wages at rates not less than those prevailing on projects of a
character similar in the locality as determined by the Secretary of
Labor in accordance with the Davis-Bacon Act. The President shall
not approve any such funding without first obtaining adequate as-
surance that required labor standards will be maintained upon the
construction work.
  (2) The Secretary of Labor shall have, with respect to the labor
standards specified in paragraph (1), the authority and functions
set forth in Reorganization  Plan Numbered 14 of 1950 (15 F.R.
3176; 64 Stat. 1267) and section 276c  of title  40 of the United States
Code.
  (h) Notwithstanding any other provision of law, subject to the
provisions of section 111 of this Act, the President may authorize
the use of such emergency procurement powers as  he deems neces-
sary to effect the purpose of this Act. Upon determination that
such procedures are necessary, the President shall promulgate reg-
ulations prescribing the circumstances under which such authority
shall be used and the procedures governing the use of such author-
ity.
  (iYU There is hereby established within the  Public Health Serv-
ice an agency, to be known as the Agency for Toxic Substances and
Disease Registry, which shall report  directly to the Surgeon Gener-
al of the United States. The Administrator of said Agency shall,
with the cooperation of the Administrator of the Environmental
Protection Agency, the Commissioner of the Food and Drug Admin-
istration, the Directors of the National Institute of Medicine, Na-
tional Institute of Environmental Health Sciences, National Insti-
tute of Occupational  Safety and Health,  Centers  for Disease Con-
trol, the Administrator of the Occupational Safety and Health Ad-
ministration, [and] the Administrator of the Social  Security Ad-
ministration, the Secretary of Transportation and appropriate State
and local health  officials,  effectuate and  implement the health re-
lated authorities  of this Act.  In  addition,  said Administrator
shall—
      [(1)3 (A) in cooperation with  the States, establish and main-
    tain a national registry of serious diseases and illnesses and a
    national registry of persons exposed to toxic substances;
      [(2)3 (B) establish and maintain inventory of literature, re-
    search, and studies on the health effects of toxic substances;
       [(3)5 (C) in cooperation with  the States, and other agencies
    of the Federal Government, establish and maintain a complete
    listing of areas closed to the public or otherwise restricted in
    use because of toxic substance contamination;
       [(4)3 (D) in cases of public health emergencies caused or be-
    lieved to be caused by exposure to  toxic substances,  provide
    medical care and testing to exposed individuals, including but
    not limited to tissue sampling, chromosomal testing, where ap-
    propriate, epidemiological studies, or any  other assistance ap-
    propriate under the circumstances; and

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                              24

      [(5)] (E) either  independently or as part of other health
    status survey, conduct periodic survey and screening programs
    to determine relationships between exposure to toxic sub-
    stances and illness. In cases of public health emergencies, ex-
    posed persons shall be eligible for admission to hospitals and
    other facilities and services operated or provided by the Public
    Health Service.
  (j) ACQUISITION OF PROPERTY.—
      (1) AUTHORITY.—The President  is authorized to  acquire,  by
    purchase, lease, condemnation, donation, or otherwise, any real
    property or any interest in real property that the President in
    his discretion determines is needed to conduct a remedial action
    under this Act. There shall be no cause  of action to compel the
    President to acquire any interest in real property under this Act.
      (2) STATE ASSURANCE.—The President may use the authority
    of paragraph (1) for a remedial action only if, before an interest
    in real estate is acquired  under this subsection, the State in
    which  the interest to be acquired is located assures the Presi-
    dent, through a contract or cooperative agreement or otherwise,
    that the State will accept transfer of the interest following com-
    pletion of the remedial action.
      (3) EXEMPTION.—No Federal,  State,  or  local  government
    agency shall be liable under this  Act solely as a result of ac-
    quiring an interest in real estate under this subsection.
  (2XA)  Within  6 months after the  enactment  of the Superfund
Amendments and Reauthorization Act of 1986, the Administrator of
the Agency for Toxic  Substances and  Disease Registry  ("ATSDR")
and the Administrator  of the Environmental Protection Agency
("EPA ") shall prepare a list, in order of priority, of at least 100haz-
ardous substances which are  most commonly found at facilities on
the National Priorities List and which, in their sole discretion, they
determine are posing the most significant potential threat to human
health due to their known or suspected toxicity to humans and the
potential for human exposure to such substances at facilities on the
National Priorities List or at facilities to which a response to a re-
lease  or a  threatened release under this section  is under consider-
ation.
  (B)  Within  24  months after the  enactment of the Superfund
Amendments and Reauthorization Act of 1986, the Administrator of
ATSDR and the Administrator of EPA shall revise the list prepared
under subparagraph (A).  Such revision  shall  include,  in order of
priority,  the addition  of 100 or more such hazardous substances. In
each of the 3 consecutive  12-month periods that follow,  the Admin-
istrator of ATSDR and the Administrator of EPA shall revise, in
the same manner as provided in the 2 preceding sentences, such list
to  include not  fewer  than 25 additional hazardous substances per
revision. The Administrator  of ATSDR and  the Administrator of
EPA shall not less often than once every year thereafter revise such
list to include additional hazardous substances in accordance with
the criteria in subparagraph (A).
  (3) Based on all available  information, including  information
maintained under paragraph (1XB) and data developed and collect-
ed  on the  health effects of hazardous substances under this para-
graph, the Administrator of ATSDR shall prepare toxicological pro-

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                               25

files of each of the substances listed pursuant to paragraph (2). The
toxicological profiles shall be prepared  in  accordance with guide-
lines developed by the Administrator of ATSDR and  the Adminis-
trator  of EPA. Such profiles shall include, but not  be limited to
each of the following:
      (A) An  examination,  summary, and  interpretation  of avail-
    able toxicological information and epidemiologic evaluations on
    a hazardous substance in order to ascertain the levels of signifi-
    cant human  exposure for  the substance and the associated
    acute, subacute,  and chronic health effects.
      (B) A determination of whether adequate information on the
    health effects  of each substance is available or in  the process of
    development to determine levels of exposure which present a sig-
    nificant risk to  human health of acute, subacute, and chronic
    health effects.
      (C) Where appropriate, an  identification of toxicological test-
    ing needed to identify the types or levels of exposure that may
    present significant risk of adverse health effects in humans.
Any toxicological profile or revision thereof shall reflect the Admin-
istrator of A TSDR 's assessment of all relevant toxicological testing
which  has been peer reviewed.  The profiles required to be prepared
under  this paragraph for those hazardous  substances listed under
subparagraph (A)  of-paragraph (2) shall be completed, at a rate of
no fewer than 25 per year, within 4 years after the enactment of the
Superfund Amendments and Reauthorization Act of 1986. A profile
required on a substance listed  pursuant to subparagraph (B) of
paragraph (2) shall  be completed within 3 years after addition to
the list. The profiles prepared under  this paragraph shall be of
those substances highest on the list of priorities under paragraph (2)
for which profiles  have not previously been prepared. Profiles re-
quired  under  this paragraph shall be revised and republished as
necessary, but no less often than  once  every 3 years. Such profiles
shall be provided to the States and made available to other interest-
ed parties.
  (4)  The Administrator of the ATSDR shall provide consultations
upon  request on health issues relating to exposure to hazardous or
toxic  substances,  on the basis of available  information, to the Ad-
ministrator of EPA, State officials, and local officials. Such consul-
tations to individuals may be provided by States  under cooperative
agreements established under  this  Act.
  (5XA) For each hazardous substance listed pursuant to paragraph
(2), the Administrator of ATSDR (in consultation with the Adminis-
trator  of EPA  and other agencies  and programs  of the Public
Health Service) shall assess whether adequate  information on the
health  effects of such substance is available. For any such substance
for which adequate information is not available (or under develop-
ment), the Administrator of ATSDR, in cooperation with  the Direc-
tor of the National Toxicology Program, shall assure the initiation
of a program of research  designed to  determine  the health effects
(and  techniques  for development of  methods  to determine such
health  effects) of  such substance.  Where  feasible,  such program
shall seek to develop methods to determine the health effects of such
substance in combination  with other  substances  with which it is
commonly  found.  Before assuring the  initiation  of such program,

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                               26

the Administrator of ATSDR shall consider recommendations of the
Interagency Testing Committee established under section 4(e) of the
Toxic Substances Control Act on the types of research that should be
done. Such program  shall include, to the extent necessary to supple-
ment existing information, but shall not be limited to—
      (i) laboratory and other studies to determine short, intermedi-
    ate, and long-term health effects;
      (ii) laboratory and other studies to determine organ-specific,
    site-specific, and system-specific acute and chronic toxicity;
      (Hi) laboratory and other studies to determine the manner in
    which such substances are metabolized or to otherwise develop
    an understanding of the biokinetics of such substances; and
      (iv) where there is a possibility of obtaining human data,  the
    collection of such information.
  (B) In assessing  the need to perform  laboratory and other studies,
as  required  by subparagraph  (A), the  Administrator of ATSDR
shall consider—
      (i) the availability and quality of existing test data concern-
    ing the substance on the suspected  health effect in question;
      (ii) the extent to which testing already in progress will, in a
    timely fashion, provide data  that will be adequate to support
    the preparation of toxicological profiles  as  required  by para-
    graph (3); and
      (Hi) such other scientific and technical factors as the Admin-
    istrator of ATSDR may determine  are necessary for the effective
    implementation  of this subsection.
  (C) in  the development and implementation of any  research pro-
gram under  this paragraph,  the Administrator of ATSDR and  the
Administrator  of EPA shall coordinate such  research program  im-
plemented under this paragraph with  the National Toxicology Pro-
gram and with programs of toxicological testing established under
the Toxic Substances Control Act  and the Federal Insecticide, Fun-
gicide and Rodenticide Act. The purpose of such  coordination shall
be to avoid duplication of effort and  to assure that the hazardous
substances listed pursuant to this subsection  are tested thoroughly
at the earliest practicable date. Where appropriate, consistent with
such purpose, a research program  under this paragraph may be car-
ried out using such programs of toxicological testing.
  (D) It  is the sense of the Congress that the costs of research pro-
grams under this paragraph be  borne  by  the manufacturers and
processors of the  hazardous substance in question, as required in
programs of toxicological testing  under the  Toxic Substances Con-
trol Act  Within  1 year  after  the  enactment  of the Superfund
Amendments and  Reauthorization Act of 1986, the Administrator of
EPA shall promulgate regulations which provide, where appropri-
ate, for payment  of such costs by manufacturers and processors
under the Toxic Substances  Control Act, and registrants under the
Federal Insecticide,  Fungicide,  and Rodenticide Act, and recovery of
such costsfrom responsible parties under this Act.
  (6XA)  The Administrator of ATSDR shall perform a health  as-
sessment for each  facility on the National Priorities List established
under section  105. Such health assessment shall be completed not
later than December 10, 1988, for each facility proposed for inclu-
sion on such list prior to the date  of the enactment of the Superfund

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                               27

Amendments and Reauthorization Act of 1986 or not later than one
year after the date of proposal for inclusion on such  list for each
facility proposed for inclusion on such list after such date of enact-
ment.
  (B) The Administrator of ATSDR  may perform health assess-
ments for releases or facilities where individual persons or licensed
physicians provide information that individuals have  been exposed
to a hazardous substance, for which the probable source of such ex-
posure is a release. In addition to other methods  (formal or infor-
mal) of providing such  information, such individual persons or li-
censed physicians may  submit a petition to the Administrator of
ATSDR providing such  information and requesting a health assess-
ment. If such  a  petition is submitted and  the Administrator of
ATSDR does not  initiate a health assessment, the  Administrator of
ATSDR shall provide a written explanation of why a health assess-
ment is not appropriate.
  (C) In determining the priority in which to conduct health assess-
ments under this subsection, the Administrator of ATSDR, in  con-
sultation  with the Administrator of EPA,  shall give priority to
those facilities at which there is documented evidence of the release
of hazardous substances, at  which the potential risk to  human
health appears highest, and for which in the judgment of the Ad-
ministrator  of ATSDR  existing health assessment data are inad-
equate to  assess the potential risk to human health as provided in
subparagraph  (F).  In  determining the priorities for conducting
health  assessments  under  this subsection,  the Administrator of
ATSDR shall consider  the  National Priorities List schedules  and
the needs  of the Environmental Protection Agency and other Feder-
al agencies  pursuant to schedules for remedial investigation  and
feasibility studies.
  (D) Where a health assessment is done at a site on  the National
Priorities  List, the Administrator of ATSDR shall  complete such as-
sessment promptly and, to the maximum extent practicable, before
the completion of the remedial investigation and feasibility study at
the facility concerned.
  (E) Any State or political subdivision carrying out a health assess-
ment for a facility shall report  the results of the assessment to the
Administrator of ATSDR and the Administrator of EPA and shall
include recommendations with  respect to further activities  which
need to be  carried  out under this section.  The Administrator of
ATSDR shall state such  recommendation in any  report on the re-
sults of any assessment carried out' directly by the Administrator of
ATSDR for such facility and shall issue periodic  reports which in-
clude the results  of all the  assessments carried out under this  sub-
section.
  (F) For the purposes  of this subsection and section  lll(cX4), the
term "health assessments " shall include preliminary assessments of
the potential risk to human health posed by individual sites and fa-
cilities, based on such factors as the nature and extent of contami-
nation, the  existence of potential pathways of human  exposure (in-
cluding ground or surface water contamination, air emissions,  and
food chain  contamination),  the size and potential susceptibility of
the community within the likely pathways of exposure, the compari-
son  of expected human exposure levels to the short-term and long-
               - 2

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                               28

term health effects associated with identified hazardous substances
and any available recommended  exposure  or  tolerance limits for
such hazardous substances, and the comparison of existing morbidi-
ty and mortality data on diseases that may be associated with the
observed levels of exposure. The Administrator of ATSDR shall use
appropriate data, risk assessments, risk evaluations and  studies
available from the Administrator of EPA.
  (G) The purpose of health assessments under this subsection shall
be to assist in determining whether actions under paragraph (11) of
this subsection should be taken to reduce human exposure  to haz-
ardous substances from a facility and  whether additional informa-
tion on human exposure and associated health risks is needed and
should  be  acquired by  conducting  epidemiological studies under
paragraph  (7), establishing a registry under paragraph (8), establish-
ing a health surveillance program under paragraph (9), or through
other means. In  using the results of health assessments for deter-
mining additional actions to be taken under this section, the Ad-
ministrator of ATSDR may consider additional information on the
risks to the potentially affected population from all sources  of such
hazardous  substances  including known point  or nonpoint  sources
other than  those from the facility in question.
  (H) At the completion of each health assessment, the Administra-
tor of ATSDR shall provide the Administrator of EPA and each af-
fected State with the results of such assessment, together with any
recommendations for further actions under this subsection or other-
wise under this Act. In addition, if the health  assessment indicates
that the release or threatened release concerned may pose a serious
threat to human health or the environment, the Administrator of
ATSDR shall so notify  the  Administrator  of EPA  who  shall
promptly evaluate such release or threatened release in accordance
with the hazard ranking system referred to in section 105(aX8XA) to
determine  whether the site shall be placed on the National Prior-
ities List or, if the site is already on the list, the Administrator of
ATSDR may recommend to the Administrator  of EPA that the site
be accorded a higher priority.
  (7XA)  Whenever in the judgment of the Administrator of ATSDR
it is appropriate on  the  basis of the results  of a health assessment,
the Administrator of ATSDR shall conduct a pilot study of health
effects for  selected groups of exposed individuals in order to deter-
mine the  desirability of conducting full scale epidemiological or
other health studies of the entire exposed population.
   (B) Whenever in the judgment of the Administrator of ATSDR it
is appropriate on the basis of the results of such pilot study or other
study or health assessment, the Administrator of ATSDR shall con-
duct such  full scale epidemiological or other health studies as may
be necessary to  determine the health  effects on the population  ex-
posed to hazardous  substances from a release or threatened release.
If a significant excess of disease in a population is identified, the
letter of transmittal of such  study shall include an assessment of
other risk  factors, other than a release, that  may, in the judgment of
 the peer review group, be associated with such disease, if such risk
factors were not taken into account in the design or conduct of the
study.

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                               29

  (8) In any case in which the results of a health assessment indi-
cate a potential significant risk to human health, the Administrator
ofATSDR shall consider whether the establishment of a registry of
exposed persons  would contribute  to accomplishing the purposes of
this subsection,  taking  into account circumstances bearing on  the
usefulness of such  a registry, including the seriousness or unique
character of identified diseases or the likelihood of population mi-
gration from the affected area.
  (9) Where  the Administrator ofATSDR has determined that there
is a significant increased risk of adverse health effects in humans
from exposure to hazardous substances  based on the results of a
health assessment conducted under paragraph (6), an epidemiologic
study conducted under paragraph (7),  or an exposure registry that
has been established under paragraph (8), and the Administrator of
ATSDR has determined that such exposure is the result of a release
from a facility, the Administrator ofATSDR shall initiate a health
surveillance program for such population. This program shall  in-
clude but not be limited to—
      (A) periodic medical testing where appropriate of population
    subgroups to screen for diseases for which the population or
    subgroup is at significant increased risk; and
      (a) a mechanism to refer  for  treatment those  individuals
    within such population who are screened positive for such dis-
    eases.
  (10) Two years after the date  of the enactment of the Superfund
Amendments and Reauthorization Act of 1986,  and every 2 years
thereafter, the Administrator of ATSDR shall prepare and submit
to the Administrator of EPA and to the Congress  a report on  the
results of the activities ofATSDR regarding—
      (A) health assessments and pilot  health effects studies con-
    ducted;
      (B) epidemiologic  studies conducted;
      (C) hazardous substances which have been listed under para-
    graph (2), toxicological profiles which have been developed, and
    toxicologic testing which has been conducted or which is being
    conducted under this subsection;
      (D) registries established under paragraph (8); and
      (E) an overall assessment, based on the  results of activities
    conducted by the Administrator ofATSDR, of the linkage  be-
    tween human exposure to individual or combinations of haz-
    ardous substances due to releases from facilities covered by this
    Act or  the Solid Waste Disposal  Act and  any increased inci-
    dence or prevalence of adverse health effects in humans.
  (11) If a health assessment or other study carried out under this
subsection contains a finding that the exposure concerned presents a
significant  risk to human health, the  President shall take such
steps as may be necessary to reduce such exposure and eliminate or
substantially mitigate the significant  risk to human health. Such
steps may include the use of any  authority under this Act,  includ-
ing, but not limited to—
      (A) provision of alternative water supplies, and
      (B) permanent or  temporary relocation of individuals.
In  any  case in which information  is insufficient, in the judgment of
the Administrator ofATSDR or the President to determine a signif-

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                               30

icant human exposure level with respect to a hazardous substance,
the President may take such steps as may be necessary to reduce the
exposure of any person to such hazardous substance to such level as
the President deems necessary to protect human health.
  (12) In any case which is the subject of a petition, a health assess-
ment or study, or a research program  under this subsection, nothing
in this subsection shall be construed  to delay or otherwise affect or
impair the authority of the President, the Administrator of ATSDR,
or the Administrator of EPA to  exercise any authority vested in the
President,  the Administrator of ATSDR or  the Administrator of
EPA  under any other provision of law (including, but not limited
to,  the  imminent hazard  authority  of section 7003  of  the  Solid
Waste Disposal Act) or the response  and abatement authorities of
this Act.
  (13) All studies and results of research conducted under this sub-
section (other than health assessments) shall be reported or adopted
only after  appropriate peer review. Such peer review shall be com-
pleted, to  the maximum extent practicable, within  a period of 60
days. In  the case of research  conducted under the National Toxicol-
ogy Program, such peer  review  may be conducted by  the  Board of
Scientific Counselors. In the case of other research, such peer review
shall be conducted by panels consisting of no  less  than three  nor
more than seven members, who shall be disinterested scientific ex-
perts selected for such purpose by the Administrator of ATSDR or
the Administrator of EPA, as appropriate, on the basis of their rep-
utation for scientific objectivity and  the lack of institutional  ties
with  any person involved  in the conduct of the study or  research
under review. Support services for such panels shall be provided by
the Agency for Toxic Substances and Disease Registry, or by the En-
vironmental Protection Agency, as appropriate.
  (14) In the implementation of this subsection and other health-re-
lated authorities of this Act, the Administrator of ATSDR shall as-
semble, develop as necessary, and distribute to the States, and upon
request to  medical colleges, physicians, and other health profession-
als, appropriate educational materials (including short courses) on
the medical surveillance, screening, and  methods of diagnosis and
treatment  of injury or disease related to exposure to hazardous sub-
stances (giving priority  to those listed in paragraph (2)),  through
such means as the Administrator of ATSDR deems appropriate.
  (15) The activities  of the Administrator of ATSDR described in
this subsection and section lll(c)(4) shall be carried out by the Ad-
ministrator of ATSDR, either directly or  through  cooperative agree-
ments with States (or political subdivisions thereof) which the Ad-
ministrator of ATSDR  determines  are capable of carrying out such
activities.  Such activities shall include provision of consultations on
health  information,  the conduct  of health assessments,  including
those required under section 3019(b) of  the  Solid  Waste  Disposal
Act, health studies, registries, and health surveillance.
   (16) The President shall provide adequate personnel for ATSDR,
which shall not be fewer than 100 employees. For purposes of deter
mining the number of employees under this subsection, an employet
employed  by ATSDR on a part-time career employment basis shal
be counted as a fraction which is  determined by dividing 40 houn

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                               31

into the average  number  of hours of such  employee's  regularly
scheduled workweek.
  (17) In accordance with section 120 (relating to Federal facilities),
the Administrator of ATSDR shall have the same authorities under
this section with respect to facilities owned or operated by a depart-
ment, agency, or instrumentality of the United States as the Admin-
istrator of ATSDR has with respect to any nongovernmental entity.
  (18) If the Administrator of ATSDR determines that it is appro-
priate for purposes of this section to treat a pollutant or contami-
nant as a hazardous substance, such pollutant or contaminant shall
be treated as a hazardous substance for such purpose.

                  NATIONAL CONTINGENCY PLAN

  SEC. 105. (a) REVISION AND REPUBLICATION.—Within one hundred
and eighty days after the enactment of  this Act, the President
shall, after notice  and opportunity for public comments, revise and
republish the national contingency plan for the removal of oil and
hazardous substances, originally prepared  and published pursuant
to section 311 of the Federal Water Pollution Control Act, to reflect
and effectuate the responsibilities and powers created by this Act,
in addition to those matters specified in section 311(cX2). Such revi-
sion shall include  a section of the plan to be known as the national
hazardous substance response  plan  which shall establish proce-
dures and standards for responding to releases of hazardous sub-
stances,  pollutants,  and contaminants, which shall include at a
minimum:
      (1)  methods for discovering and  investigating facilities  at
    which hazardous substances have been disposed of or otherwise
    come to be located;
      (2)  methods for evaluating,  including  analyses of relative
    cost, and remedying  any releases or threats of releases from fa-
    cilities which pose substantial danger to the public health or
    the environment;
      (3)  methods and  criteria for  determining the appropriate
    extent of removal, remedy, and other measures authorized by
    this Act;
      (4)  appropriate roles  and responsibilities for the Federal,
    State, and local governments and for interstate and nongovern-
    mental entities in effectuating the plan;
      (5)  provision  for identification, procurement,  maintenance,
    and storage of response equipment and supplies;
      (6)  a method for and assignment of  responsibility for report-
    ing the existence of such facilities which may be located on fed-
    erally owned  or controlled properties and any releases of haz-
    ardous substances from such facilities;
      (7) means of assuring that remedial action measures are cost-
    effective over the period of potential exposure to the hazardous
    substances or contaminated materials;
      (8XA) criteria  for  determining priorities  among releases or
    threatened releases  throughput the United States for the pur-
    pose  of taking remedial action  and, to the extent practicable
     taking into account the potential urgency  of such action,  for
    the purpose of taking removal action. Criteria and priorities

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                              32   ,

   under this paragraph  shall  be based  upon relative  risk  or
   danger to public health or welfare or the environment, in the
   judgment of the President, taking into account to the extent
   possible the population at risk, the hazard potential of the haz-
   ardous substances at such facilities, the potential for contami-
   nation of  drinking water  supplies, the  potential for direct
   human contact, the potential for destruction of sensitive eco-
   systems, the damage to natural resources which may affect the
   human food chain and which is associated with any release  or
   threatened release,  the contamination or potential contamina-
   tion of the ambient  air which is associated with the release  or
   threatened release,  State preparedness  to assume State costs
   and responsibilities, and other appropriate factors;
     (B) based upon the criteria set forth in subparagraph (A)  of
   this paragraph, the  President shall list as part  of the plan na-
   tional priorities among the known releases or threatened re-
   leases throughout the United States and shall revise the list  no
   less often than annually. Within one year after the date of en-
   actment of this Act, and annually thereafter, each State shall
   establish and submit for consideration by the President prior-
   ities for remedial action among known releases and potential
   releases in that State based upon the criteria set forth in sub-
   paragraph (A) of this paragraph. In assembling or revising the
   national list, the President shall consider any priorities estab-
   lished by the States. To the extent practicable, [at least four
   hundred of]  the highest priority facilities shall be designated
   individually and  shall  be referred to  as  the "top  priority
   among known response targets", and, to the extent practicable,
   shall include among the one  hundred highest priority [facili-
   ties at least] facilities  one such facility from each State which
   shall be the facility designated by the State as presenting the
   greatest danger to public health or welfare or the environment
   among the known facilities in such State. A State shall be al-
   lowed to designate its highest priority facility only once. Other
   priority facilities or incidents may be listed singly or grouped
   for response priority purposes; [and]
      (9) specified roles for private organizations  and entities  in
   preparation for response and in responding to  releases of haz-
   ardous substances,  including   identification   of  appropriate
   qualifications and capacity therefor [.] and including consider-
   ation  of minority firms in accordance  with subsection  (f); and
      (10) standards and testing procedures by which alternative or
    innovative  treatment technologies can be determined to be ap-
   propriate for utilization in response actions authorized by this
   Act.
The  plan shall specify procedures, techniques,  materials, equip-
ment, and methods to  be employed in identifying,  removing,  or
remedying releases of hazardous substances comparable to those
required under section 311(cX2) (F) and (G) and (jXD of the Federal
Water Pollution Control Act. Following publication of the revised
national contingency plan, the response to and actions to minimize
damage from  hazardous substances releases shall,  to the greatest
extent possible, be in accordance with the provisions of the plan.

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                              33

The President may, from time to time, revise and republish the na-
tional contingency plan.
  (b) REVISION OF PLAN.—Not later than 18 months after the enact-
ment of the Superfund Amendments and Reauthorization Act of
1986, the President shall revise the National Contingency Plan to re-
flect the requirements of such amendments. The portion of such
Plan known as "the National Hazardous Substance Response Plan"
shall be revised to provide procedures and standards for remedial
actions  undertaken pursuant to this Act which are consistent with
amendments made by the Superfund Amendments and Reauthoriza-
tion Act of 1986 relating to the selection of remedial action.
  (c) HAZARD RANKING SYSTEM.—
      (1) REVISION.—Not later than 18 months  after  the enactment
    of the Superfund Amendments and Reauthorization Act of 1986
    and after  publication of notice and opportunity for submission
    of comments in  accordance with section  553 of title 5, United
    States Code,  the President shall  by rule promulgate  amend-
    ments to the hazard ranking system in  effect on September 1,
    1984. Such amendments shall assure, to the maximum extent
    feasible, that the hazard ranking system accurately assesses the
    relative  degree of risk to human health and the environment
    posed by sites and facilities  subject to  review.  The President
    shall establish an effective date for the amended hazard rank-
    ing system which is  not later  than 24 months after enactment
    of  the Superfund Amendments and Reauthorization Act of
    1986. Such amended  hazard ranking system shall be applied to
    any site or facility to be newly listed on  the National Priorities
    List after the effective date established by the President.  Until
    such effective date  of the regulations, the  hazard ranking
    system in effect on September 1, 1984,  shall continue in full
    force and effect.
      (2) HEALTH ASSESSMENT OF WATER CONTAMINATION RISKS.—In
    carrying out this subsection, the President shall ensure that the
    human  health risks  associated with the contamination or po-
    tential contamination (either directly or  as a  result of  the
    runoff of any hazardous substance or pollutant or contaminant
    from sites or facilities) of surface water are appropriately as-
    sessed where such surface water is, or can be, used for recrea-
    tion or potable  water consumption. In making the  assessment
    required pursuant to the preceding sentence,  the President shall
    take into account the potential migration of any hazardous sub-
    stance or pollutant or contaminant through such surface  water
    to downstream sources of drinking water.
      (3) REEVALUATION NOT REQUIRED.—The President shall not be
    required to reevaluate,  after the date of the enactment of the
    Superfund Amendments and Reauthorization Act of 1986,  the
    hazard  ranking of any facility which  was evaluated in accord-
    ance with the criteria  under this section  before the effective
    date of the amendments  to the hazard  ranking system under
     this subsection  and which was  assigned  a national  priority
     under the National Contingency Plan.
      (4) NEW INFORMATION.—Nothing in paragraph (3) shall pre-
    clude the President from taking new  information into account
     in undertaking response actions under this Act.

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                               34

  (d) PETITION FOR ASSESSMENT OF RELEASE.—Any person who is,
or may be, affected by a release or threatened release of a hazardous
substance or pollutant or contaminant,  may petition  the President
to conduct a preliminary assessment of the hazards to public health
and the environment which  are associated  with such release or
threatened release. If the President  has  not previously conducted a
preliminary assessment of such release,  the President  shall, within
12 months after the receipt of any such petition, complete such as-
sessment or provide an explanation of why the assessment is not ap-
propriate. If the preliminary assessment indicates that  the release or
threatened release concerned may pose a threat to human health or
the environment,  the  President shall promptly evaluate such release
or threatened release  in accordance with the hazard ranking system
referred to in paragraph (8XA) of subsection (a) to determine the na-
tional priority of such release or threatened release.
  (e) RELEASES FROM EARLIER SITES.—Whenever there has been,
after January 1, 1985, a significant  release of hazardous substances
or pollutants or  contaminants from a site which is  listed by the
President as a "Site  Cleaned up To Date" on the National Prior-
ities List (revised  edition, December 1984) the site shall be restored
to the National Priorities List, without application of  the hazard
ranking system.
  (f) MINORITY CONTRACTORS.—In  awarding contracts  under this
Act, the President shall consider the availability of qualified minor-
ity firms. The President shall describe, as part of any annual report
submitted to the Congress under this Act, the participation of mi-
nority firms in contracts carried out under  this Act. Such report
shall contain a brief description of the contracts which have been
awarded  to minority firms  under this Act and of the efforts made
by the President to encourage  the participation of such firms in pro-
grams carried out under this Act.
  (g) SPECIAL STUDY  WASTES.—
      (1) APPLICATION.—This subsection applies to facilities—
           (A) which  as  of the date of enactment of the Superfund
        Amendments and Reauthorization Act of 1986 were not in-
        cluded on, or proposed for inclusion on, the National Prior-
         ities List; and
           (B) at which special study wastes described in paragraph
         (2),  (SXAXii) or (SXAXiii) of section 3001(b)  of the Solid
         Waste Disposal Act are present in significant quantities, in-
         cluding any such facility from  which there has been a re-
         lease of a special study waste.
       (2) CONSIDERATIONS IN ADDING FACILITIES TO NPL.—Pending
     revision of the hazard  ranking  system under subsection (c), the
     President shall consider each of the following factors in adding
     facilities covered by this section to the National Priorities List:
           (A) The extent to which hazard ranking system score for
         the facility is affected by the presence of any special study
         waste at, or any release from, such facility.
           (B) Available information as  to  the quantity,  toxicity,
         and concentration of hazardous  substances  that  are con-
         stituents  of any special study  waste at, or released from
         such facility, the extent of or potential for release of such
         hazardous constituents, the exposure or potential  exposure

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                               35

        to human population and the environment, and the degree
        of hazard to human health or the environment posed by the
        release of such hazardous constituents at such facility. This
        subparagraph  refers  only  to available  information  on
        actual concentrations of hazardous substances and not on
        the total quantity of special study waste at such facility.
      (3) SAVINGS PROVISIONS.—Nothing in this subsection shall be
    construed to  limit the authority of the President to remove any
    facility which as of the date of enactment of the Superfund
    Amendments and Reauthorization Act of 1986 is included on
    the National Priorities List from such List, or not to list any
    facility which as of such date is proposed for inclusion on such
    list.
      (4) INFORMATION GATHERING AND ANALYSIS.—Nothing in this
    Act shall be construed  to preclude  the expenditure of monies
    from the  Fund for gathering and analysis of information which
    will enable the President  to  consider the  specific factors re-
    quired by paragraph (2).

                       ABATEMENT ACTION

  SEC. 106. (a) .In addition to any other action taken  by  a State or
local government, when the President determines that there may
be an imminent and substantial endangerment to the public health
or welfare or the environment because of an actual or threatened
release of a  hazardous  substance  from a facility, he  may require
the Attorney General of the United States to secure such relief as
may be necessary to abate such danger or threat, and the district
court of the United States in the district in which the threat occurs
shall  have jurisdiction to grant such relief  as  the public interest
and the equities  of the  case may require. The President may also,
after  notice to the affected State, take other action under this sec-
tion including, but not limited  to, issuing such orders as may be
necessary to protect public health  and welfare and  the  environ-
ment.
  (bVZ> Any person [who willfully]  who, without sufficient cause,
willfully violates, or fails or refuses to comply with,  any order of
the President under subsection (a) may, in an action brought in the
appropriate  United States district court to enforce such order, be
fined not more than C$5,000]  $25,000 for each day in which such
violation occurs or such failure to comply continues.
  (2XA) Any person who receives and complies with the terms of any
order issued  under subsection (a) may, within 60 days  after comple-
tion of the required action, petition the President for reimbursement
from  the Fund for the reasonable costs of such action, plus interest.
Any interest payable under this  paragraph shall accrue on the
amounts expended from the date of expenditure at the same rate as
specified for interest on  investments of the Hazardous Substance Su-
perfund established under subchapter A of chapter 98 of the Inter-
nal Revenue  Code of 1954.
  (B) If the President refuses to grant all or part of a petition made
under this paragraph,  the petitioner may within 30 days of receipt
of such refusal file an action against the President in  the appropri-

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                               36

ate United  States district court seeking reimbursement from  the
Fund
  (C) Except as provided in subparagraph CD),  to obtain reimburse-
ment, the petitioner shall establish by a preponderance of the evi-
dence that it is not liable for response costs under section 107(a) and
that costs for which it seeks reimbursement are reasonable in light
of the action required by the relevant order.
  (D) A  petitioner who is liable  for response costs  under section
107(a) may also recover its reasonable costs of response to the extent
that it can demonstrate, on the administrative record, that  the
President's decision in selecting the response action ordered was ar-
bitrary and capricious or was otherwise not in accordance with law.
Reimbursement awarded under this subparagraph shall include all
reasonable response costs incurred by the petitioner pursuant to the
portions  of the order found to be arbitrary and capricious or other-
wise not  in accordance with law.
  (E) Reimbursement awarded by a court under subparagraph (C) or
(D) may  include  appropriate costs, fees,  and other expenses in ac-
cordance with subsections (a) and (d) of section 2412 of title 28 of
the United States Code.
  (c) Within one  hundred and  eighty days  after enactment of this
Act, the Administrator of the Environmental Protection Agency
shall, after consultation with the Attorney General, establish and
publish  guidelines for  using the imminent hazard, enforcement,
and emergency response authorities of this section and other exist-
ing statutes administered by the Administrator of the Environmen-
tal Protection Agency to effectuate the responsibilities and powers
created by this Act. Such guidelines shall to the extent practicable
be consistent with the national hazardous substance response plan,
and shall include, at a minimum, the assignment of responsibility
for coordinating  response actions with the issuance of administra-
tive orders, enforcement of standards and permits, the gathering of
information, and other  imminent hazard  and emergency powers
authorized by (1) sections 311(cX2), 308, 309, and 504(a) of the Feder-
al Water Pollution  Control  Act, (2) sections 3007, 3008, 3013, and
7003 of the Solid Waste Disposal Act, (3) sections 1445 and 1431 of
the Safe Drinking Water Act,  (4) sections 113, 114, and 303 of the
Clean Air Act, and (5) section 7 of the Toxic Substances Control
Act.

                            LIABILITY

   SEC. 107. (a) Notwithstanding any other provision or rule of law,
and subject only to the defenses set forth  in subsection (b)  of this
section—
       (1) the owner and operator of a vessel [(otherwise subject to
     the  jurisdiction of the United States)] or a facility,
       (2) any person who  at the time of disposal of any hazardous
     substance owned or operated any facility at which such hazard-
     ous  substances were disposed of,
       (3) any person who by contract, agreement, or otherwise ar-
     ranged for disposal or treatment, or  arranged with a  trans-
     porter for transport for disposal or  treatment, of hazardous
     substances owned or  possessed by such person, by any other

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                               37

    party or entity, at any facility or incineration vessel owned or
    operated by another party or entity and containing such haz-
    ardous substances, and
      (4) any person who  accepts or accepted any hazardous sub-
    stances for transport to disposal or treatment facilities, inciner-
    ation vessels or sites selected by such person, from which there
    is a release,  or a threatened release which causes the incur-
    rence of  response costs,  of a hazardous substance,  shall  be
    liable for—
          (A) all costs of  removal or remedial action incurred  by
        the United States Government  or  a State  or  an Indian
        tribe  not inconsistent with the national contingency plan;
          (B) any other necessary  costs of response incurred  by
        any other person consistent with the national contingency
        plan; [and]
          (C) damages for  injury to, destruction of, or loss of natu-
        ral resources, including the reasonable costs of assessing
        such  injury, destruction, or loss resulting from such a re-
        lease [.j; and
          (D) the costs of any health assessment or health effects
        study carried out under section 104(i).
The amounts recoverable in an action under this section  shall in-
clude interest on  the amounts recoverable under subparagraphs (A)
through (D). Such interest shall accrue from  the later of (i) the date
payment of a specified amount  is demanded in writing, or (ii) the
date of the  expenditure concerned. The rate  of interest on the out-
standing unpaid balance of the amounts recoverable under this sec-
tion shall be the same rate  as is specified for  interest on investments
of the Hazardous Substance Superfund established under subchap-
ter A of chapter 98 of the  Internal Revenue  Code of 1954- For pur-
poses of applying such amendments to  interest under  this subsec-
tion, the term "comparable maturity" shall be determined with ref-
erence to the date on which interest accruing under this subsection
commences.
  (b) There shall be no liability under subsection (a) of this section
for a person otherwise liable who can establish by a preponderance
of the evidence that the release or threat of release of a hazardous
substance and the damages resulting therefrom were caused solely
by—
      (1) an act of God;
      (2) an act of war;
      (3) an act or omission of a third party  other than  an employ-
    ee  or agent of the defendant, or than one whose act or omis-
    sion occurs in connection with a contractual relationship, exist-
    ing directly or indirectly, with the defendant (except where the
    sole contractual arrangement arises from a published  tariff
    and acceptance for carriage by  a common carrier  by rail), if
    the defendant establishes by  a preponderance of the evidence
    that (a) he exercised  due  care with respect to the hazardous
    substance concerned, taking into consideration the characteris-
    tics of such hazardous substance, in light of all relevant  facts
    and circumstances, and (b) he took precautions against foresee-
    able acts or  omissions of any such  third party and the conse-

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                               38

    quences that could foreseeably result from such acts or omis-
    sions; or
      (4) any combination of the foregoing paragraphs.
  (cXl) Except as provided in paragraph  (2) of this subsection, the
liability under this section of an owner or operator or other respon-
sible person for each release of a hazardous substance or incident
involving release of a hazardous substance shall not exceed—
      (A) for any vessel, other than  an incineration vessel, which
    carries any hazardous substance as cargo or residue, $300 per
    gross ton, or $5,000,000, whichever is greater;
      (B) for any other vessel,  other than an  incineration vessel,
    $300 per gross ton, or $500,000, whichever is greater:
      (C) for any motor vehicle, aircraft, pipeline (as defined in the
    Hazardous Liquid Pipeline Safety Act of 1979), or rolling stock,
    $50,000,000 or such lesser amount as  the President shall estab-
    lish by regulation, but in no event less than $5,000,000 (or, for
    releases  of  hazardous  substances   as defined  in  section
    10K14KA) of this title  into the  navigable waters, $8,000,000).
    Such regulations shall  take into account  the size, type,  loca-
    tion, storage, and handling capacity and other  matters relating
    to the likelihood of release in each such class and to the eco-
    nomic impact of such limits on each such class; or
      (D) for  any incineration  vessel or any facility other  than
    those specified in subparagraph (C) of this paragraph, the total
    of all costs of response plus $50,000,000 for any damaiges under
    this title.
  (2) Notwithstanding the limitations in  paragraph (1) of this sub-
section, the liability  of an owner or operator or other responsible
person under this section shall  be the full and total costs of re-
sponse and damages, if (AXi) the release or threat of release of a
hazardous substance  was the result of willful misconduct or willful
negligence within the privity or knowledge of such  person,  or (ii)
the primary cause of the release was a violation (within the privity
or knowledge of such person) of applicable safety, construction, or
operating standards or regulations; or (B) such person fails or re-
fuses to  provide all reasonable cooperation and assistance  request-
ed by a  responsible public  official in connection with response ac-
tivities under the national  contingency plan with respect  to regu-
lated carriers  subject to the provisions  of title 49 of the  United
States Code or vessels subject to the provisions of title 33  or 46 of
the  United States Code,  subparagraph  (AXii) of this paragraph
shall be  deemed to refer to Federal standards or regulations.
  (3) If any person who is liable for a release or threat of release of
a hazardous substance  fails  without sufficient cause to properly
provide  removal or  remedial action upon order  of the President
pursuant to section  104 or 106 of this  Act, such person  may be
liable to  the United  States for  punitive  damages  in an amount at
least equal to, and not more than three  times, the amount of any
costs incurred by  the Fund as a result of such failure  to take
proper action. The  President is authorized to commence a civil
action against any such person to recover the punitive damages,
which shall be in addition to any costs recovered from such person
pursuant to section 112(c) of this Act. Any moneys received by the

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                               39

United States pursuant to this subsection shall be deposited in the
Fund.
  £(d) No person shall be liable under this title for damages as a
result of actions taken or omitted in the course of rendering care,
assistance, or advice in accordance  with the national contingency
plan or  at the direction of an onscene coordinator appointed under
such plan, with respect to an incident creating a danger to public
health or welfare or the environment as  a result of any release of a
hazardous  substance or the threat  thereof. This subsection shall
not preclude liability for damages as the result of gross negligence
or intentional misconduct on the part of such person. For the pur-
poses of the preceding sentence, reckless, willful, or wanton miscon-
duct shall constitute gross negligence.]
  (d) RENDERING CARE OR ADVICE.—
      (1) IN GENERAL.—Except as provided  in paragraph (2),  no
    person shall be liable under this title for costs or damages as a
    result of actions taken or omitted in the course of rendering
    care, assistance, or advice in accordance with the National Con-
    tingency Plan ("NCP") or at the direction of an  onscene coordi-
    nator appointed under such plan, with respect to an incident
    creating a danger to public health  or  welfare or the environ-
    ment as a result of any releases of a  hazardous substance or the
    threat thereof.  This paragraph shall not preclude liability for
    costs or damages as the result of negligence on the part of such
    person.
      (2) STATE AND LOCAL GOVERNMENTS.—No State or local gov-
    ernment shall be liable under this title for costs or damages as
    a result of actions taken in response  to an emergency created by
    the release or threatened release of a hazardous substance gen-
    erated by or from a facility owned by another person. This para-
    graph  shall not preclude  liability for  costs or damages as a
    result of gross negligence or intentional  misconduct by the State
    or local government. For the purpose of the preceding sentence,
    reckless, willful, or wanton misconduct shall constitute gross
    negligence.
      (3) SAVINGS PROVISION.—This subsection shall not alter the
    liability of any person covered by the provisions of paragraph
    (1),  (2),  (3), or (4) of subsection (a) of this section with respect to
    the release or threatened release concerned.
  (eXD No indemnification, hold harmless, or similar agreement or
conveyance shall be effective to transfer from the owner or opera-
tor of any vessel or facility or from any person who may be  liable
for a release or threat of release under this section, to any  other
person the liability imposed under this section. Nothing  in this sub-
section shall bar any agreement to insure, hold harmless, or indem-
nify a party to such agreement for any liability under this section.
  (2) Nothing in this title,  including the  provisions of paragraph (1)
of this subsection, shall bar a cause of action that an owner or op-
erator-or any other person subject to liability under this section, or
a guarantor, has or would have, by  reason of subrogation or other-
wise against any person.
  (Ml) NATURAL RESOURCES LIABILITY.—In  the case of an injury to,
destruction of, or loss of natural resources  under  subparagraph  (C)
of subsection (a) liability shall be to the  United States Government

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                               40

and to any State for natural resources within the State or belong-
ing to, managed by, controlled by,  or appertaining  to such State
and to any Indian tribe for natural resources belonging to,  manager
by, controlled by, or appertaining to such tribe, or held in  trust for
the benefit of such tribe, or belonging to a member of such tribe if
such resources are subject to a trust restriction on alienation: Pro-
vided,  however,  That no liability to the United States or State or
Indian tribe shall be imposed under subparagraph (C) of subsection
(a), where the party sought to be charged has demonstrated that
the damages to  natural resources complained of were specifically
identified as  an  irreversible and irretrievable commitment of natu-
ral resources in  an environmental impact statement, or other com-
parable environment analysis, and  the decision to grant  a  permit
or license authorizes such commitment of natural resources, and
the facility or project was otherwise operating within the terms of
its permit  or license, so long as,  in the case of damages  to an
Indian tribe  occurring pursuant to a Federal permit  or license, the
issuance  of that permit or license  was not inconsistent with the fi-
duciary duty of the United States with respect to such Indian tribe.
The President, or the authorized representative of any State, shall
act on behalf of the public as trustee of such natural resources to
recover for such damages.  [Sums recovered  shall be available for
use to restore, rehabilitate, or acquire the equivalent of such natu-
ral resources by the  appropriate  agencies of the Federal Govern-
ment or  the  State government, or the Indian tribe l  but the meas-
ure of such damages shall not be limited by the sums which can be
used to restore or replace such resources. J  Sums recovered by the
United States Government as trustee under this subsection shall be
retained  by the  trustee, without further appropriation, for use only
to restore,  replace, or acquire the equivalent of such natural re-
sources. Sums recovered by a State as trustee under this subsection
shall be  available for  use only to  restore, replace, or acquire the
equivalent  of such natural resources by the State. The measure of
damages in  any action under subparagraph (C) of subsection (a)
shall not be  limited by the sums which can be used to restore or re-
place such resources.  There shall  be no double recovery under this
Act for natural resource damages,  including the costs of damage as-
sessment or restoration, rehabilitation, or acquisition for  the same
release and natural resource. There shall be no recovery under the
authority of  subparagraph (C) of subsection (a) where such damages
and the release  of a hazardous substance from which such damages
resulted  have occurred wholly before the enactment of this Act.
  (2) DESIGNATION OF FEDERAL AND  STATE OFFICIALS.—
       (A) FEDERAL.—The President  shall designate in the National
    Contingency Plan published under section  105 of this Act the
    Federal  officials  who shall act on behalf of the public as trust-
    ees for natural resources under this Act and section 311 of the
    Federal  Water Pollution Control Act. Such officials shall assess
    damages for injury to,  destruction of,  or loss  of natural  re-
    sources for purposes of this Act and such section 311  for those
    resources under their trusteeship and may,  upon  request of and
   ' The phrase "or the Indian tribe" was inserted here by section 207(cXlXD) of Public Law 99-499.

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                               41

    reimbursement from a State and at the Federal officials discre-
    tion, assess damages for  those  natural resources  under the
    State's trusteeship.
      (B) STATE.—The Governor of each State shall designate State
    officials who may act on behalf of the public as trustee for nat-
    ural resources under this Act and section 311 of the Federal
    Water Pollution Control Act and shall notify the President of
    such designations.  Such State officials shall assess damages to
    natural resources for the purposes of this Act and such section
    311 for those natural resources under their trusteeship.
      (C) REBUTTABLE  PRESUMPTION.—Any determination or assess-
    ment of damages to  natural resources for the purposes of this
    Act and section 311 of the Federal Water Pollution Control Act
    made by a Federal or State trustee in accordance with the regu-
    lations promulgated under section 301(c) of this Act  shall have
    the force and effect of a  rebuttable presumption on behalf of the
    trustee in any administrative or judicial proceeding  under this
    Act or section 311  of the Federal Water Pollution Control Act.
  [(g) Each department, agency, or instrumentality of  the execu-
tive, legislative, and judicial branches of the Federal Government
shall be subject to,  and comply with, this Act in the same manner
and to  the same extent, both procedurally and substantively, as
any nongovernmental entity,  including  liability under this sec-
tion.J  (g) FEDERAL AGENCIES.—For provisions relating  to Federal
agencies, see section 120 of this Act.
  (h) The owner or operator of a vessel shall be liable in accord-
ance with this section, under Maritime tort  law, and as provided
under section 114 of this Act notwithstanding any provision of the
Act of March 3, 1851 (46 U.S.C. 183ff) or the absence of any physical
damage to the proprietary interest of the claimant.
  (i) No person (including the United States or any State or Indian
tribe) may recover  under the authority of this  section for any  re-
sponse costs or  damages resulting from the application  of a pesti-
cide product registered under the Federal  Insecticide,  Fungicide,
and Rodenticide Act.  Nothing in  this paragraph shall affect or
modify  in any way the obligations or liability of any person under
any other provision of State or Federal law, including common law,
for damages, injury, or loss  resulting from a release of any hazard-
ous substance or for removal or remedial action or the costs of re-
moval or remedial action of such hazardous substance.
  (j) Recovery by any person (including the United  States or any
State or Indian tribe) for response costs or damages resulting from
a federally permitted  release shall be pursuant to existing law in
lieu of this section.  Nothing  in this paragraph shall affect or
modify in any way the obligations or liability of any person under
any other provision of State or Federal law, including common law,
for damages, injury, or loss  resulting from a release of any hazard-
ous substance or for removal or remedial action or the  costs of re-
moval or remedial action of such hazardous substance. In addition,
costs  of response incurred by  the Federal Government  in connec-
tion with a discharge specified in section 101(10) (B) or (C) shall be
recoverable in  an action brought under section 309(b) of the Clean
Water Act.

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                               42

  (kXD The liability established by this section or any other law for
the owner or operator of a hazardous waste disposal facility which
has received a permit under subtitle C of the Solid Waste Disposal
Act, shall be transferred to and assumed by the Post-closure Liabil-
ity Fund established by section 232 of this Act when—
      (A) such facility and the  owner  and operator thereof has
    complied with the requirements of subtitle C of the  Solid
    Waste  Disposal Act and regulations issued  thereunder, which
    may affect the performance  of such facility after closure; and
      (B) such facility has been closed in accordance with such reg-
    ulations and the conditions  of such permit, and such facility
    and the surrounding area have been monitored as required by
    such regulations and  permit conditions for  a period not to
    exceed five years after closure to demonstrate that there is no
    substantial  likelihood  that  any  migration offsite or release
    from confinement of any hazardous substance or other risk to
    public health or welfare will  occur.
  (2) Such  transfer of liability shall be effective ninety days after
the owner or operator of such facility notifies the Administrator of
the Environmental Protection Agency (and the State where it has
an  authorized program under section  3006(b) of the  Solid Waste
Disposal Act) that  the conditions imposed by this subsection have
been satisfied. If within such ninety-day period the Administrator
of the Environmental Protection Agency or such State determines
that any such facility has not complied with all the conditions im-
posed by this subsection or that insufficient information has been
provided to demonstrate such  compliance,  the  Administrator or
such State shall so notify the owner and operator of such facility
and the administrator  of the Fund established  by section 232 of
this Act, and the owner and operator of such facility shall continue
to be liable with respect to such facility under  this section and
other law until such time as the Administrator and such State de-
termines that such facility has complied with all  conditions  im-
posed by this subsection. A determination by the Administrator or
such State that a facility has not complied with all conditions im-
posed by this subsection or that insufficient information has been
supplied to demonstrate compliance, shall be a final administrative
action for  purposes of judicial review. A request for additional in-
formation shall state in specific terms the data required.
  (3) In addition to the assumption of liability of owners and opera-
tors under paragraph (1) of this subsection, the Post-closure Liabil-
ity Fund established by section  232 of this Act may be used to pay
costs of monitoring and care and maintenance of a site incurred by
other persons after the period of monitoring required by regula-
tions under subtitle C of the Solid Waste Disposal Act for hazard-
ous waste disposal facilities meeting the conditions of paragraph (1)
of this subsection.
  (4XA) Not later than one year after the date of enactment of this
Act, the Secretary of the Treasury shall conduct a study and shall
submit a report thereon to the Congress on the feasibility of estab-
lishing or qualifying an optional system  of private insurance for
ppstclosure financial responsibility for hazardous waste disposal fa-
cilities  to which this subsection applies. Such study shall include  a
specification of adequate  and  realistic  minimum standards to

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                              43

assure that any such privately placed insurance will carry out the
purposes of this subsection in a reliable, enforceable, and practical
manner. Such a study shall  include an examination of the public
and  private incentives, programs, and  actions necessary to make
privately placed insurance a practical and effective option to the
financing system for the Post-closure Liability Fund  provided in
title II of this Act.
  (B) Not later than eighteen months after the date of enactment
of this Act and after a public hearing, the President shall by rule
determine whether or not it is feasible to establish or qualify an
optional system  of private  insurance  for  postclosure  financial
responsibility for hazardous waste disposal facilities to which  this
subsection applies.  If the President determines the establishment
or qualification of such  a system would be infeasible,  he shall
promptly publish an explanation of the  reasons for such a determi-
nation. If the President determines the establishment  or qualifica-
tion of such a system would  be feasible, he shall promptly publish
notice of such determination. Not later than six  months after an
affirmative determination under the preceding sentence and after
a public hearing, the President shall by rule promulgate adequate
and  realistic minimum standards which must be met  by any such
privately placed insurance, taking into account the purposes of this
Act and this subsection. Such rules shall also specify reasonably ex-
peditious procedures by which privately placed insurance plans can
qualify as meeting such minimum standards.
  (C) In the event any  privately  placed insurance plan qualifies
under subparagraph (B), any  person enrolled in, and complying
with the terms of, such plan shall be excluded from the provisions
of paragraphs (1), (2), and (3) of this subsection and  exempt from
the requirements to pay any  tax or fee to the Post-closure Liability
Fund under title II of this Act.
  (D) The President may issue such rules and take such other ac-
tions as are necessary to effectuate the  purposes of this paragraph.
  (5) SUSPENSION OF LIABILITY TRANSFER.—Notwithstanding para-
graphs (1), (2),  (3), and (4) of this subsection and subsection (j) of sec-
tion 111 of this Act, no liability shall be transferred to or assumed
by the Post-Closure Liability Trust Fund established by section 232
of this Act prior to completion of  the study required under para-
graph (6) of this subsection,  transmission of a report of such study
to both Houses of Congress, and authorization of such  a transfer or
assumption  by Act of Congress following receipt of such study  and
report.
  (6) STUDY OF OPTIONS FOR POST-CLOSURE PROGRAM.—
       (A) STUDY.—The Comptroller General shall conduct a study
     of options for a program for the management of the liabilities
     associated with hazardous waste treatment, storage, and dispos-
     al sites after  their closure which complements the policies set
     forth in the Hazardous and Solid  Waste Amendments of 1984
     and assures the protection of human  health  and the environ-
     ment.
       (B) PROGRAM ELEMENTS.—The program referred to in  sub-
     paragraph (A} shall be designed to assure each of the following:

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                           44

      (i) Incentives  are  created  and maintained for the safe
    management and disposal of hazardous  wastes so as  to
    assure protection of human health and the environment.
      (ii) Members  of the public  will have reasonable confi-
    dence that hazardous wastes will be managed and disposed
    of safely and that resources  will be  available to address
    any problems that may arise and to cover costs of long-term
    monitoring, care, and maintenance of such sites.
      (Hi) Persons who are or seek to become owners and opera-
    tors  of hazardous waste disposal facilities will  be  able  to
    manage their potential future  liabilities and to attract the
    investment  capital necessary to build,  operate,  and close
    such facilities in a  manner which  assures protection  of
    human health and the environment.
  (C) ASSESSMENTS.—The study under this paragraph shall in-
clude assessments of treatment, storage, and disposal facilities
which have been or are likely to be issued a permit  under sec-
tion 3005 of the Solid Waste Disposal Act and  the likelihood  of
future insolvency on the part of owners and operators of suck
facilities. Separate  assessments  shall  be made for different
classes of facilities and for different classes of land disposal fa-
cilities and shall include but not be limited to—
      (i) the current and future financial capabilities of facility
    owners and operators;
      (ii) the current and future costs associated with facilities,
    including the costs of routine monitoring and maintenance,
    compliance monitoring, corrective action,  natural resource
    damages, and liability for damages to  third parties;  and
      (Hi)  the availability of mechanisms by which owners and
    operators  of such facilities  can assure that current and
    future costs, including post-closure costs, will  be financed.
  (D) PROCEDURES.—In carrying out the responsibilities of this
paragraph, the Comptroller General shall  consult with the Ad-
ministrator, the Secretary of Commerce,  the  Secretary  of the
Treasury, and  the heads of other appropriate Federal agencies.
  (E) CONSIDERATION OF OPTIONS.—In conducting  the study
under this paragraph, the Comptroller General shall consider
various mechanisms and combinations of mechanisms  to com-
plement  the policies set forth in the Hazardous and Solid Waste
Amendments of 1984 to serve  the purposes set forth in subpara-
graph (B) and to assure that the current and future costs associ-
ated  with hazardous waste  facilities,  including post-closure
costs, will be adequately financed and, to  the  greatest extent
possible, borne  by the owners and operators of such facilities.
Mechanisms to be considered include, but are not limited to—
      (i) revisions to closure, post-closure, and financial respon-
     sibility requirements under subtitles C  and I of the Solid
     Waste Disposal Act;
      (ii) voluntary risk pooling by owners and operators;
      (Hi) legislation to require risk pooling by owners  and op-
     erators;
       (iv) modification of the Post-Closure Liability Trust Fund
     previously established by section 232 of this Act,  and the
     conditions for transfer of liability under this subsection, in-

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                             45

      eluding limiting the transfer of some or all liability under
      this subsection only in the case of insolvency of owners and
      operators;
        (v) private insurance;
        (vi) insurance provided by the Federal Government;
        (vii) coinsurance,  reinsurance, or pooled-risk  insurance,
      whether provided by the private sector or provided or assist-
      ed by the Federal Government; and
        (viii) creation of a new program to be administered by a
      new  or existing Federal agency or by a federally chartered
      corporation.
    (F) RECOMMENDATIONS.—The Comptroller General shall con-
  sider options for funding any program under this section and
  shall, to  the extent necessary,  make recommendations to the ap-
  propriate committees of Congress for additional authority to im-
  plement such program.
(1) FEDERAL LIEN.—
    (1) IN GENERAL.—All costs and damages for which a person is
  liable to the United States under subsection  (a) of this section
  (other than the owner or operator of a vessel  under paragraph
  (1)  of subsection  (a))  shall constitute a lien  in favor  of'the
  United States upon all real property and rights to such property
  which—
        (A) belong to such person; and
        (B) are subject  to or affected  by a removal or remedial
      action.
    (2) DURATION.—The lien imposed  by  this  subsection  shall
  arise at the later of the following:
        (A) The time costs are first incurred  by the United States
      with respect to a response action under this Act.
        (B) The time that the person referred to in paragraph (1)
      is provided (by certified or registered mail) written  notice of
      potential liability.
  Such  lien  shall continue until the  liability for the costs (or a
  judgment against the person arising out of such liability) is sat-
  isfied or becomes unenforceable through operation of the statute
  of limitations provided in section 113.
    (3) NOTICE AND VALIDITY.—The lien imposed by  this subsec-
  tion shall be subject to the rights of any purchaser, holder of a
  security interest, or judgment  lien creditor whose interest is per-
  fected  under applicable State law before notice of the lien  has
  been filed in  the appropriate  office within the State (or county
  or other governmental subdivision),  as designated by State law,
   in  which  the real property subject to the  lien is located. Any
  such purchaser, holder of a security interest,  or judgment lien
  creditor shall be afforded the same protections against the lien
   imposed by  this  subsection as  are  afforded  under State  law
  against a judgment lien which arises out of an unsecured obli-
  gation and which arises as of the time of the filing of the notice
  of the lien imposed by this subsection. If the State has not by
   law designated one office for  the receipt of such notices of liens,
   the notice shall be filed in the office of the clerk of the  United
  States district court for the district in which the real property is
   located.  For purposes  of this  subsection,  the terms  "purchaser"

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                               46

    and "security  interest" shall have the  definitions provided
    under section 6323(h) of the Internal Revenue Code of 1954.
      (4) ACTION IN REM.—The costs constituting the lien may be re-
    covered in an  action in rem in the United States district court
    for the district in which  the removal or remedial action is oc-
    curring or has occurred. Nothing in this subsection shall affect
    the right of the United States to bring an action against any
    person to recover all costs and damages for  which such person
    is liable  under subsection  (a) of this section.
  (m) MARITIME LIEN.—All costs and damages for which the owner
or operator of a vessel is liable under subsection (aXD with respect
to a release or threatened release from such vessel shall constitute a
maritime lien in favor of the United States' on such vessel. Such
costs may be recovered in an  action in rem  in the district court of
the United States for the district in which the vessel may be  found.
Nothing in  this subsection shall  affect the  right of  the United
States to bring an action  against the owner or operator of such
vessel in any court of competent jurisdiction to  recover such costs.

                    FINANCIAL RESPONSIBILITY

  SEC. 108. (aXD The owner  or operator of each vessel (except a
non-self-propelled  barge that  does not carry hazardous substances
as cargo) over three hundred  gross tons that uses any port or place
in the United States or the navigable waters or  any offshore facili-
ty, shall establish and  maintain, in  accordance with  regulations
promulgated by the President,  evidence of  financial  responsibility
of $300 per gross ton  (or for a vessel carrying hazardous substances
as cargo, or $5,000,000,  whichever is  greater to cover the liability
prescribed  under paragraph (1) of section 107(a) of this Act).  Finan-
cial responsibility may be  established by any  one, or any combina-
tion, of the following: insurance, guarantee,  surety bond, or qualifi-
cation as a self-insurer. Any bond filed shall be issued by a bonding
company authorized to do  business in the United States. In cases
where an owner or operator owns, operates, or charters more than
one vessel subject to this subsection, evidence of financial responsi-
bility need be established only to meet the maximum liability ap-
plicable to the largest of such vessels.
   (2)  The Secretary of the Treasury shall withhold  or revoke  the
clearance  required by section 4197 of the Revised Statutes of the
United States of any vessel subject to this subsection that does not
have certification furnished by the President that the financial re-
sponsibility provisions of paragraph (1) of this subsection have been
complied with.
   (3)  The  Secretary of Transportation, in accordance with regula-
tions issued  by him, shall (A)  deny entry to any port or place in the
United States or navigable waters to, and (B) detain  at the port or
place in the United States from which it is about to depart for any
other port or place in the United States, any vessel subject  to this
subsection that, upon  request, does not produce certification fur-
nished by the President that the financial responsibility provisions
of paragraph (1) of this subsection have been complied with.
   (4) In addition  to the financial responsibility provisions of para-
graph (1) of this subsection,  the President shall require additional

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                               47

evidence of financial responsibility for incineration vessels in such
amounts, and  to cover such  liabilities recognized  by  law,  as  the
President deems appropriate, taking into account the potential risks
posed by incineration and transport for incineration, and any other
factors deemed relevant.
  (bXD  Beginning not earlier than five years after the date of en-
actment of this Act, the President shall promulgate requirements
(for  facilities  in addition to  those  under subtitle  C of the Solid
Waste Disposal Act and other Federal law) that classes of facilities
establish and  maintain evidence of financial responsibility consist-
ent with the degree and duration of risk associated with the pro-
duction, transportation, treatment,  storage, or disposal of hazard-
ous substances. Not later than three years after the date of enact-
ment of the  Act,  the President shall identify those  classes  for
which requirements will  be first developed and publish  notice of
such identification  in the Federal Register. Priority in  the develop-
ment of such requirements  shall be accorded to those classes of fa-
cilities,   owners,  and  operators  which  the President  determines
present the highest level of risk of injury.
  (2) The level of  financial responsibility shall be initially estab-
lished, and, when necessary, adjusted to protect against the level of
risk which the President in  his discretion believes is appropriate
based on the  payment experience of the Fund, commercial insur-
ers, courts settlements and judgments, and voluntary claims satis-
faction. To the maximum extent practicable, the President shall co-
operate  with and seek the  advice of the commercial insurance in-
dustry in developing financial responsibility requirements.  Finan-
cial responsibility may be established by any one, or any  combina-
tion, of the following:  insurance, guarantee, surety bond, letter of
credit, or qualification as a  self-insurer. In promulgating require-
ments under  this  section,  the  President  is authorized to  specify
policy or other contractual  terms, conditions, or defenses which are
necessary, or which are unacceptable, in establishing such evidence
of financial responsibility in order to effectuate the purposes of  this
Act.
  (3) Regulations   promulgated  under   this  subsection  shall
incrementally impose financial responsibility requirements [over a
period of not less than three and no more than six years]  as quick-
ly as can reasonably be achieved but in no event more than  4 years
after the date of promulgation. Where possible, the level of finan-
cial responsibility  which the President believes appropriate as  a
final requirement  shall be achieved through  incremental,  annual
increases in the requirements.
  (4) Where a facility is owned or operated  by more than  one
person,  evidence of financial responsibility covering the  facility
may be  established and maintained by one of the owners  or opera-
tors, or, in consolidated form,  by or on  behalf of two or more
owners  or operators. When evidence of financial responsibility  is
established in a consolidated form, the proportional share of each
participant shall be shown. The evidence shall be accompanied by a
statement authorizing the applicant to act for and in behalf of each
participant in submitting and maintaining the evidence of financial
responsibility.

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                               48

  (5) The requirements for evidence of financial responsibility for
motor carriers covered by this Act shall be determined under sec-
tion 30 of the Motor Carrier Act of 1980, Public Law 96-296.
  [(c) Any claim authorized by section 107 or 111 may be asserted
directly  against  any guarantor  providing evidence  of financial
responsibility  as  required under this section. In defending such a
claim,  the guarantor may invoke all rights and  defenses  which
would be available to the owner or operator under this title. The
guarantor may  also  invoke  the defense that the incident was
caused by the  willful misconduct of the owner or operator, but such
guarantor may not invoke any other defense that such guarantor
might have been entitled to invoke in a proceeding brought by the
owner or operator against him.
    S(d)  Any guarantor acting in good faith  against which claims
    er this Act are asserted  as a guarantor shall be  liable  under
section 107 or section  112(c)  of this title  only up to the monetary
limits of the policy of insurance or indemnity contract such  guar-
antor has undertaken or of the guaranty of other evidence of finan-
cial responsibility furnished under section 108 of this Act, and only
to the  extent  that liability is not excluded by restrictive endorse-
ment: Provided,  That this subsection shall not alter the liability of
any person under section 107 of this Act.]
  (c) DIRECT ACTION.—
      (1)  RELEASES FROM VESSELS.—In   the case of  a release  or
    threatened release from a  vessel, any claim authorized by sec-
    tion  107 or 111 may be asserted directly against any guarantor
    providing evidence of financial responsibility for such  vessel
    under subsection (a). In defending such a claim, the guarantor
    may invoke all rights and defenses which would be available to
    the owner or operator under this title. The guarantor may also
    invoke the defense that the incident was caused by the willful
    misconduct of the owner or operator,  but the guarantor may not
    invoke any other defense that the guarantor might have been
    entitled to invoke in a proceeding brought by the owner or oper-
    ator against him.
      (2) RELEASES FROM FACILITIES.—In the case  of a release  or
    threatened release from a facility, any claim authorized by sec-
    tion 107 or 111 may be asserted directly against any guarantor
    providing evidence of financial responsibility for  such facility
    under subsection (b), if the person  liable under section 107 is in
    bankruptcy,  reorganization,  or arrangement  pursuant to  the
    Federal Bankruptcy Code, or if, with reasonable diligence, juris-
    diction in the Federal courts cannot  be obtained over a person
    liable under section 107  who  is likely to be solvent at the time
    of judgment.  In the case of any action pursuant  to this para-
    graph, the guarantor shall be entitled to invoke all rights and
    defenses which would have been available to the  person  liable
    under section 107 if any action had been brought against such
    person  by the claimant  and all rights and defenses  which
    would have  been available to the guarantor if an  action had
    been brought against the guarantor by such person.
   (d) LIMITATION OF GUARANTOR LIABILITY.—
      (1) TOTAL LIABILITY.—The total liability of any guarantor in
    a direct action suit brought under this section shall be limited

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                               49

    to the aggregate amount of the monetary limits of the policy of
    insurance, guarantee, surety bond, letter of credit, or similar in-
    strument obtained from the guarantor by the person subject to
    liability under section 107 for the purpose of satisfying the re-
    quirement for evidence of financial responsibility.
      (2) OTHER LIABILITY.—Nothing in  this  subsection shall  be
    construed to limit any other State or Federal statutory, contrac-
    tual, or common law liability of a guarantor, including, but not
    limited to, the liability of such guarantor for bad  faith either
    in negotiating  or in failing to negotiate the settlement of any
    claim.  Nothing in this subsection shall be construed, interpret-
    ed, or applied to diminish  the liability of any person under sec-
    tion 107 of this Act or other applicable law.

                            [PENALTY

  [SEC. 109. Any person who, after notice and an opportunity for a
hearing, is found to have failed to comply with the requirements of
section 108, the regulations issued thereunder, or with any denial
or detention order shall be  liable to the  United States for a civil
penalty, not to exceed $10,000 for each day of violation.]

                   CIVIL PENALTIES AND AWARDS

  SEC. 109. (a) CLASS I ADMINISTRATIVE PENALTY.—
      (1) VIOLATIONS.—A civil penalty of not more than $25,000 per
    violation may be assessed by the President in the case of any of
    the following—
          (A} A violation of the  requirements of section 103 (a) or
        (b) (relating to notice).
          (B) A violation of the requirements of section  103(dX2) (re-
        lating to destruction of records, etc.).
          (C) A violation  of the requirements of section 108 (relat-
        ing to financial responsibility, etc.),  the regulations issued
        under section 108, or with  any denial or detention order
        under section 108.
          (D) A violation of an order under section 122(dX3) (relat-
        ing to settlement  agreements for  action   under  section
        104(b)).
          (E) Any  failure or refusal  referred to in section 122(1) (re-
        lating to  violations of administrative  orders,  consent de-
        crees, or agreements under section 120).
       (2) NOTICE AND HEARINGS.—No civil penalty may be assessed
    under this subsection unless the  person accused of the violation
    is given notice  and opportunity for a hearing with respect to the
    violation.
       (3)  DETERMINING AMOUNT.—In determining the amount  of
    any penalty assessed pursuant to this  subsection, the President
    shall take into account the  nature, circumstances, extent and
    gravity of the violation or  violations and,  with respect to the  vi-
    olator,  ability  to pay, any prior history of such  violations, the
    degree of culpability, economic benefit  or savings  (if any) result-
    ing from  the violation, and such other matters as justice may
    require.

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                               50

      (4) REVIEW.—Any person against whom a civil penalty is as-
    sessed under this subsection may obtain review thereof in  the
    appropriate district court of the United States by filing a notice
    of appeal in  such  court  within 30 days from the date of such
    order and  by simultaneously sending a copy of such  notice by
    certified mail to the President,  The President shall  promptly
    file in such court a certified copy of the record upon which such
    violation was found or  such penalty  imposed.  If any person
    fails to pay an assessment of a civil penalty after it has become
    a final  and  unappealable order or after the appropriate court
    has entered final judgment in favor of the United States,  the
    President may  request  the  Attorney  General of the  United
    States to institute a civil action in an appropriate district court
    of the United States to collect the penalty, and such court shall
    have jurisdiction to hear and decide any such action. In hear-
    ing such action, the court shall have authority to review  the
    violation and the assessment of the civil penalty on the record.
      (5) SUBPOENAS.—The President may issue subpoenas  for  the
    attendance and testimony  of witnesses and the production of
    relevant papers, books, or documents in connection with hear-
    ings under this subsection.  In case of contumacy or refusal to
    obey a subpoena issued pursuant to this paragraph and served
    upon any person, the district court of the United States  for any
    district  in which  such  person  is found, resides, or  transacts
    business, upon application by the united States and after notice
    to such  person,  shall have jurisdiction  to issue an order requir-
    ing such person to appear and give testimony before the admin-
    istrative law judge or to appear and produce documents before
    the administrative law judge, or both, and any failure to obey
    such order of the court may be punished by such court as a con-
    tempt thereof.
  (b)  CLASS II ADMINISTRATIVE PENALTY.—A civil penalty of not
more  than $25,000 per day for each day during which, the violation
continues may  be assessed by the President in the case of any of the
following—
      (1) A  violation of the notice requirements of section  103 (a) or
    (b).
      (2) A  violation of section 103(dX2) (relating  to destruction of
    records, etc.).
      (3) A  violation of the  requirements of section 108 (relating to
    financial responsibility,  etc.), the regulations issued under sec-
    tion 108, or  with  any denial or detention  order under section
    108.
      (4) A  violation of an order under section  122(d)(3) (relating to
    settlement agreements for action under section 104(b)).
       (5) Any failure or refusal referred to  in section 122(1) (relating
    to violations of administrative orders, consent decrees, or agree-
    ments under section 120).
In  the case  of a  second or subsequent violation the amount of such
penalty may be not more than  $75,000 for each day during which
the violation continues.  Any  civil penalty under this  subsection
shall be assessed and  collected  in the same manner, and  subject to
the same provisions, as in the  case of civil penalties assessed and
collected after notice and opportunity for hearing on the record in

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                               51

accordance with section 554 of title 5 of the United States Code. In
any proceeding for the assessment of a civil penalty under this sub-
section  the President may  issue subpoenas for the attendance and
testimony of witnesses and  the production of relevant papers, books,
and documents and may promulgate rules for discovery procedures.
Any person  who requested a hearing with respect to a civil penalty
under this subsection and  who is aggrieved by an order assessing
the civil penalty may file a  petition for judicial review of such order
with the United States Court of Appeals for the District of Colum-
bia Circuit or for  any other circuit in  which such person resides or
transacts business. Such a petition may only be filed within the 30-
day period beginning on the date the order making  such assessment
was  issued.
  (c) JUDICIAL ASSESSMENT.—The President may bring an action in
the United States  district court for the appropriate district to assess
and collect a penalty of not more than $25,000 per day for each  day
during  which the violation (or failure or refusal) continues in  the
case of any of the following—
      (1) A  violation of the notice requirements of section 103 (a) or
     (b).
      (2) A  violation of section lQ3(dX2) (relating to destruction of
     records, etc.).
      (3) A  violation of the requirements of section 108 (relating to
    financial responsibility, etc.), the regulations issued under  sec-
     tion 108, or with any  denial or detention order under section
     108.
      (4) A  violation of an  order under section 122(d)(3) (relating to
    settlement agreements for action under section 104(b)).
      (5) Any failure or refusal referred to in section 122(1) (relating
     to violations of administrative orders, consent decrees, or agree-
     ments under section 120).
In the case  of a second or subsequent  violation (or failure or  refus-
al),  the amount of such penalty may be not more than $75,000 for
each day during which the violation (or failure or refusal) contin-
ues.  For additional provisions providing for judicial assessment of
civil penalties for failure to comply with a request or  order under
section 104(e) (relating  to information gathering and access  authori-
ties), see section 104(e).
  (d) AWARDS.—The President may pay an award  of up to $10,000
to any  individual who provides information  leading to the arrest
and conviction of any  person  for a violation subject to a criminal
penalty under this Act, including any violation of section  103 and
any other violation referred to in this section.  The President shall,
by regulation, prescribe criteria for such an award and may pay  any
award under this subsection from the Fund, as provided in section
111.
  (e) PROCUREMENT PROCEDURES.—Notwithstanding any other pro-
vision of law, any executive agency may use competitive procedures
or procedures other than competitive procedures to procure the serv-
ices of experts for use in preparing or prosecuting a  civil or criminal
action under this  Act, whether or not the expert is expected to testify
at trial. The executive agency need not provide any written justifica-
tion for the use  of procedures  other than competitive procedures
when procuring such expert services  under this Act and  need  not

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                               52

furnish for publication in the Commerce Business Daily or other-
wise any notice of solicitation or synopsis with respect to such pro-
curement.
  (f) SAVINGS CLAUSE.—Action taken by the President pursuant to
this section shall not affect or limit the President's authority to en-
force any provisions of this Act.

                      EMPLOYEE PROTECTION

  SEC. 110. (a) No person shall fire or in any other way discrimi-
nate against, or cause to be fired or discriminated against, any em-
ployee or any authorized representative of  employees by reason of
the fact that  such employee or representative has  provided infor-
mation to  a State or to the Federal Government, filed, instituted,
or caused to be filed or instituted any proceeding under this Act, or
has testified or is about to testify in any proceeding resulting from
the administration or enforcement of the provisions of this Act.
  (b) Any employee  or a representative of employees who believes
that he has been fired or otherwise discriminated against by any
person  in  violation  of subsection (a)  of this section may,  within
thirty days after such alleged violation occurs, apply to the Secre-
tary of Labor for a review of such firing or alleged discrimination.
A copy of the application shall be sent to such person, who shall be
the respondent.  Upon receipt of such  application, the Secretary of
Labor shall cause such investigation to be made as he deems appro-
priate. Such investigation shall provide an opportunity for a public
hearing at the request of any party to such review to enable the
parties to  present information relating to such alleged violation.
The parties shall be given written notice of the time and place of
the hearing at least five days prior  to the hearing. Any such hear-
ing shall be of record and shall be subject to section 554 of title 5,
United States Code. Upon receiving the report of  such  investiga-
tion, the Secretary of Labor shall make findings of fact. If he finds
that such violation did occur, he shall issue a decision, incorporat-
ing an  order therein and his findings, requiring the party commit-
ting such violation to take such affirmative action to abate the vio-
lation as the  Secretary of Labor deems appropriate, including, but
not limited to,  the  rehiring or reinstatement of the employee or
representative of employees to his former position with compensa-
tion. If he finds that there was no such violation, he shall issue an
order denying the application. Such order  issued by the Secretary
of  Labor  under this subparagraph  shall be  subject  to  judicial
review in  the same  manner as orders and  decisions are subject to
judicial review under this Act.
  (c) Whenever  an order is issued under this section to abate such
violation, at the request of the applicant a  sum equal to the aggre-
gate  amount of all  costs and  expenses (including  the  attorney's
fees) determined by  the Secretary of Labor  to have been reasonably
incurred by the applicant for, or in  connection with,, the institution
and prosecution of such proceedings,  shall be assessed against the
person committing such violation.
   (d) This section shall have no application  to any employee who
acting  without discretion from his employer (or his agent) deliber-
ately violates any requirement of this Act.

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                              53

  (e) The President shall conduct continuing evaluations of poten-
tial loss of shifts of employment which may result from the admin-
istration or enforcement of the provisions of this Act, including,
where appropriate, investigating threatened plant closures or re-
ductions in employment allegedly resulting from such administra-
tion or enforcement. Any employee who is discharged, or  laid off,
threatened with  discharge  or layoff,  or otherwise discriminated
against by any person because of the alleged results of such admin-
istration or enforcement, or any  representative of such employee,
may request the President  to conduct a full investigation of the
matter and, at the request of any party, shall hold public hearings,
require the parties, including the employer involved, to present in-
formation relating to the actual or potential effect of such adminis-
tration or enforcement  on employment and any alleged discharge,
layoff, or other discrimination, and the detailed reasons or justifica-
tion therefore. Any such hearing shall be of record and shall be
subject to section 554 of title 5, United States Code. Upon receiving
the report of such investigation, the President shall make  findings
of fact as to the effect  of such administration or enforcement on
employment and on the alleged discharge,  layoff, or discrimination
and shall make such recommendations  as he  deems  appropriate.
Such report, findings, and recommendations shall be available to
the public. Nothing in this subsection shall be construed to require
or authorize the President or any State to  modify or withdraw any
action, standard,  limitation, or any other requirement of this Act.

                         USES OF FUND

  SEC. 111. (a) IN GENERAL.—For the purposes specified in  this sec-
tion there is authorized  to be appropriated from the Hazardous Sub-
stance Superfund established  under subchapter A of chapter 98 of
the Internal Revenue Code of 1954 not  more than $8,500,000,000 for
the 5-year period beginning on the date of enactment of the Super-
fund Amendments and  Reauthorizatipn Act of 1986. The preceding
sentence constitutes a specific authorization for the funds appropri-
ated under title II of Public Law 99-160 (relating to payment to the
Hazardous Substances  Trust Fund). The  President shall  use the
money in the Fund for the following purposes:
      (1) [payment] Payment of governmental  response costs in-
    curred pursuant to section 104 of  this title, including costs in-
    curred pursuant to the Intervention on the High Seas Act[;].
      (2) [payment] Payment of any claim for necessary response
    costs incurred by any other person as a result of carrying out
    the national contingency  plan established under  section 311(c)
    of the Clean Water Act and amended by section 105 of this
    title:  Provided, however,  That such costs must be approved
    under said plan and certified by the  responsible  Federal  offi-
    cial [;].
       (3) [payment] Payment of any claim authorized by subsec-
    tion (b) of this section and finally decided pursuant to section
     112 of this title, including those costs set  out  in  subsection
     112(cX3) of this title[;]. [and]
       (4)  [payment] Payment of costs specified under subsection
    (c) of this section.

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                               54

      (5) GRANTS FOR TECHNICAL ASSISTANCE.—The cost of grants
    under section 117(e) (relating to public participation grants for
    technical assistance).
      (6) LEAD  CONTAMINATED  SOIL.—Payment of not  to exceed
    $15,000,000 for the costs of a pilot program  for removal, decon-
    tamination,  or other action with respect to lead-contaminated
    soil in one to three different metropolitan areas.
The President shall  not pay for any administrative costs or  ex-
penses out of the Fund unless such costs and expenses are reason-
ably necessary for and incidental  to the implementation of this
title.
  (bYV IN GENERAL.—Claims asserted and compensable  but unsa-
tisfied under provisions  of section 311  of the Clean  Water Act,
which are  modified by section 304 of this  Act may  be asserted
against the Fund under this title; and other claims resulting from
a release or threat of release  of  a  hazardous substance from a
vessel or a facility may  be asserted  against the Fund under this
title for injury to, or destruction or loss of, natural resources, in-
cluding cost for damage assessment:  Provided,  however,  That any
such claim may be asserted  only by  the President, as trustee, for
natural resources  over  which  the United  States has  sovereign
rights, or natural resources within  the territory or the fishery con-
servation zone of the  United States to the extent they are managed
or protected by the United States,  or by any State for natural re-
sources within the boundary of that State belonging to, managed
by, controlled by,  or  appertaining  to the State, or by any Indian
tribe or by the  United States acting on behalf of any Indian tribe
for natural resources belonging to, managed by, controlled by, or ap-
pertaining  to such tribe, or  held  in  trust for  the benefit of such
tribe, or  belonging  to a member of such  tribe if such resources  are
subject to a trust restriction on alienation.
  (2) LIMITATION ON PAYMENT OF NATURAL RESOURCE CLAIMS.—
      (A) GENERAL REQUIREMENTS.—No natural resource claim may
    be paid from the  Fund unless the President  determines that the
    claimant has  exhausted  all administrative and judicial reme-
    dies to recover the amount of such claim from persons who may
    be liable under section  107.
      (B) DEFINITION.—As used in  this paragraph, the term "natu-
    ral resource claim" means any claim for injury to, or destruc-
    tion or loss of,  natural resources. The term does not include any
    claim for the cost of natural resource damage assessment.
  (c) Uses of the Fund under subsection (a) of this section include—
      (1) [the] The costs of assessing  both short-term and long-
    term injury to, destruction  of,  or loss of any natural resources
    resulting from a  release of a hazardous substance [;].
      (2) [the} The costs of Federal or State or Indian tribe efforts
     in the restoration, rehabilitation, or replacement or acquiring
     the equivalent of any natural  resources injured, destroyed, or
     lost as a result of a release  of a hazardous substance [;].
       (3) [subject] Subject to such amounts as are provided in ap-
     propriation Acts, the  costs of a program  to identify, investi-
     gate, and take enforcement and abatement action against re-
     leases of hazardous substances[;].

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                           55

  (4) [the costs of epidemiologic studies,] Any costs  incurred
in accordance with subsection (m) of this section  (relating  to
ATSDR) and section 104(i) including the costs of epidemiologic
and laboratory studies, health assessments, preparation of toxi-
cologic profiles development and maintenance of a registry  of
persons exposed  to hazardous substances to allow long-term
health  effect  studies, and  diagnostic services not otherwise
available to determine whether persons in populations exposed
to hazardous substances  in connection with a release or a sus-
pected release are suffering from long-latency diseases [;].
  (5) [subject] Subject to such amounts as are provided in ap-
propriation Acts, the  costs of providing equipment  and similar
overhead, related to the purposes of this Act and section 311  of
the Clean Water  Act, and needed to supplement equipment
and services available through contractors or other non-Feder-
al entities, and of establishing and maintaining damage assess-
ment capability, for  any  Federal agency  involved in strike
forces, emergency task forces, or  other  response teams under
the national contingency plan[; and].
  (6) [subject] Subject to such amounts as are provided in ap-
propriation Acts, the costs of a program to protect the health
and safety of employees involved in response to hazardous sub-
stance releases. Such  program shall be developed jointly by the
Environmental  Protection  Agency,  the Occupational Safety
and Health Administration, and the National Institute for Oc-
cupational Safety and Health and shall include, but not be lim-
ited to, measures for  identifying  and  assessing  hazards  to
which persons engaged in removal, remedy, or other  response
to hazardous  substances may be  exposed, methods to protect
workers from such hazards, and necessary  regulatory and en-
forcement measures to assure adequate  protection  of such em-
ployees.
  (7) EVALUATION COSTS  UNDER PETITION PROVISIONS OF SEC-
TION ios(d).—Costs incurred by  the President in evaluating fa-
cilities pursuant to petitions under section 105(d) (relating to pe-
titions for assessment of release).
  (8)  CONTRACT COSTS UNDER SECTION  ioj>(a)(i).—The costs  of
contracts or arrangements entered  into under section IQMaXD to
oversee and review the conduct of remedial  investigations and
feasibility studies undertaken by persons other than the Presi-
dent and the costs of appropriate Federal and State oversight of
remedial activities at National Priorities List sites resulting
from consent orders or settlement agreements,
   (9) ACQUISITION COSTS  UNDER SECTION ioi>(j).—The  costs in-
curred  by the President  in acquiring real estate or interests  in
real estate under section  104(j) (relating to acquisition of proper-
ty).
   (10) RESEARCH, DEVELOPMENT,  AND DEMONSTRATION  COSTS
UNDER  SECTION 311.—The cost of carrying out section 311 (relat-
ing to  research, development, and demonstration), except that
the amounts available for  such purposes shall not exceed the
amounts specified in subsection (n) of this section.
   (11) LOCAL GOVERNMENT REIMBURSEMENT.—Reimbursements
to  local governments  under section 123,  except that during the

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                              56

    5-fiscal-year period beginning October 1, 1986, not more than 0.1
    percent of the total amount appropriated from the Fund may be
    used for such reimbursements.
      (12) WORKER TRAINING AND EDUCATION GRANTS.—The costs of
    grants under section 126(g) of the Superfund Amendments and
    tteauthorization  Act of 1986 for training and  education  of
    workers to the extent that such costs do not exceed $10,000,000
    for each of the fiscal years 1987, 1988, 1989, 1990, and 1991.
      (13) AWARDS UNDER  SECTION 109.—The costs of any awards
    granted under section 109(d).
      (W LEAD POISONING STUDY.—The cost of carrying out  the
    study under subsection (f) of section 118 of the Superfund
    Amendments and Reauthorization Act of 1986 (relating to lead
    poisoning in children).
  (dXD No money in the Fund may be used under subsection (c) (1)
and (2) of this section, nor for the payment of any claim under sub-
section (b) of this section, where the injury, destruction, or loss of
natural resources and the release of a hazardous substance from
which such  damages resulted  have occurred wholly before the en-
actment of this Act.
  (2) No money  in the Fund may be used for the payment of any
claim under subsection (b)  of this section where such expenses are
associated with injury or loss resulting from long-term exposure to
ambient concentrations of air  pollutants from multiple or  diffuse
sources.
  (eXl) Claims against or presented to the Fund shall not be valid
or paid in excess of the total money in the Fund at any one time.
Such  claims become valid only when additional money is collected,
appropriated, or otherwise added to the Fund.  Should the total
claims outstanding at any time exceed the current balance of the
Fund, the President shall pay such claims, to the extent authorized
under this section, in full  in the order  in which  they were finally
determined.
  (2)  In any fiscal year, 85 percent of the money credited to the
Fund under title II of this Act shall be available only for the pur-
poses specified in paragraphs (1), (2), and (4) of subsection (a) of this
section. No money in  the Fund may be used for the payment of any
claim under subsection (aX3) or subsection (b) of this section in any
fiscal year for which  the President determines that all of the Fund
is needed ro response to threats to public health from releases or
threatened releases of hazardous substances.
  (3)  No money in the Fund shall be available for remedial action,
other than  actions specified in subsection (c) of this section, with
respect to federally owned facilities; except that money in the Fund
shall be available for the provision of alternative water supplies (in-
cluding the reimbursement of costs incurred by a municipality) in
any case involving groundwater contamination outside the  bound-
aries  of a federally owned  facility in which the federally owned fa-
cility is not the only potentially responsible party.
  (4)  Paragraphs (1) and (4) of subsection (a) of this section shall in
the aggregate be subject to such amounts as are provided in appro-
priation Acts.
  (f)  The President is authorized  to promulgate  regulations desig-
nating one  or more Federal officials who may obligate money in

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                               57

the Fund in  accordance with this section or portions thereof. The
President is also authorized to delegate authority to obligate money
in the Fund or to settle claims to officials of a State or Indian tribe
operating under a contract or cooperative agreement with the Fed-
eral Government pursuant to section 104(d) of this title.
  (g) The President shall provide for the promulgation of rules and
regulations with  respect to the notice to be provided to potential
injured parties by an owner and operator of any vessel, or facility
from  which a hazardous substance has been released. Such rules
and regulations shall consider the scope and  form of the notice
which would be appropriate to carry out the purposes of this title.
Upon promulgation of such rules and regulations, the owner and
operator of any vessel or facility from which a hazardous substance
has been released shall provide  notice  in accordance with  such
rules and regulations. With respect to releases from public vessels,
the President shall provide such notification as is appropriate to
potential injured parties. Until the promulgation of such rules and
regulations, the owner and operator of any vessel or facility from
which a hazardous substance has been released shall provide rea-
sonable notice to  potential injured parties by publication  in local
newspapers serving the affected area.
   [(hXl) In accordance with regulations promulgated under section
301(c) of this Act, damages for injury to, destruction of, or loss of
natural  resources  resulting from  a  release of a hazardous sub-
stance,  for the purposes of this Act and section 311(f) (4) and (5) of
the Federal Water Pollution Control Act, shall  be  assessed by Fed-
eral officials designated by the President under the  national con-
tingency plan published under section 105 of the Act, and such offi-
cials shall act for the President as trustee under  this section and
section  311(fX5) of the Federal Water Pollution Control Act.
  [(2) Any determination or assessment of damages for injury to, de-
struction of,  or loss of natural resources for the  purposes of this
Act and section 311(f) (4) and (5)  of  the Federal  Water Pollution
Control  Act  shall have the force  and effect of a rebuttable pre-
sumption on behalf of any claimant (including a trustee under sec-
tion 107 of this Act or a Federal agency) in  any judicial or adjudica-
tory administrative proceeding under this Act or section 311 of the
Federal Water Pollution Control Act.J
   (h) Reserved.
   (i) Except in a situation requiring action to avoid an irreversible
loss of natural resources or to prevent or reduce any continuing
danger to natural resources or similar need for emergency action,
funds may not be used under this  Act for the restoration, rehabili-
tation, or replacement or acquisition of the equivalent of any natu-
ral resources until a  plan for the use of such  funds  for such pur-
poses has been developed and adopted by affected  Federal agencies
and the Governor or Governors of any State and  by  the governing
body of any Indian tribe having sustained damage to natural  re-
sources belonging to, managed by,  controlled by, or appertaining to
such  tribe, or held in trust for the benefit of such tribe, or belonging
to a  member of such  tribe if such  resources are subject  to a trust
restriction on alienation, having sustained damage to natural  re-
sources within its borders,  belonging to,  managed  by or appertain-

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                              58

ing to such State, after adequate public notice and opportunity for
hearing and consideration of all public comment.
  (j) The President shall use the money in the Post-closure Liabil-
ity Fund for any of the purposes specified in  subsection (a) of this
section  with respect to a  hazardous waste  disposal  facility for
which liability has transferred to such fund under section 107(k) of
this Act, and, in addition, for payment of any claim or appropriate
request for costs of response, damages, or other compensation for
injury  or loss under section 107 of this Act or any other State or
Federal law, resulting from a release of a  hazardous substance
from such a facility.
   [(k)  The  Inspector  General  of each department or  agency to
which  responsibility to obligate money in the  Fund is delegated
shall provide an audit review team to audit all  payments, obliga-
tions, reimbursements, or other uses of the Fund, to assure that
the Fund is being properly administered and that claims are being
appropriately and  expeditiously  considered. Each such Inspector
General shall submit to the Congress an interim report one year
after the establishment of the  Fund and a final report two years
after the establishment of the Fund. Each such Inspector General
shall thereafter provide such auditing of the  Fund as is appropri-
ate. Each Federal agency shall cooperate with the Inspector Gener-
al in carrying out'this subsection.!
  (k) INSPECTOR GENERAL.—In each fiscal year, the Inspector Gener-
al of each department, agency, or  instrumentality of  the United
States which is carrying out any authority of this Act shall conduct
an annual audit of all payments,  obligations, reimbursements, or
other uses of the Fund in  the prior fiscal year, to assure  that the
Fund is being properly administered and  that claims are being ap-
propriately and expeditiously considered.  The audit shall include
an examination of a sample of agreements with States (in accord-
ance with the provisions of the Single Audit Act} carrying out re-
sponse actions under this title and an examination of remedial in-
vestigations and feasibility studies prepared for remedial actions.
The Inspector  General shall submit  to  the  Congress  an  annual
report  regarding the audit report required under this subsection.
The report shall contain such recommendations as  the Inspector
General deems appropriate. Each department, agency, or instrumen-
tality of the United States shall cooperate with its inspector general
in carrying out this subsection.
   (1) To the extent that the provisions of this Act permit, a foreign
claimant may  assert a claim  to the same extent that a United
States claimant may assert a claim if—
      (1) the release of a hazardous substance occurred (A) in the
     navigable waters or (B) in or on the territorial sea  or adjacent
     shoreline of a foreign country of which the claimant is a  resi-
     dent;
      (2) the claimant is not otherwise compensated for his Ices;
      (3) the hazardous substance  was released  from a facility or
     from a  vessel located adjacent to  or within the navigable
     waters or was discharged in connection with activities conduct-
     ed under the Outer Continental Shelf Lands Act, as amended
     (43 U.S.C.  1331 et seq.) or  the Deepwater Port Act of 1974, as
     amended (33 U.S.C. 1501 et seq.); and

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                               59

      (4) recovery is authorized by a treaty or an executive agree-
    ment between the United States and foreign country involved,
    or if the Secretary of State, in consultation with the Attorney
    General  and  other  appropriate officials, certifies  that such
    country provides a comparable remedy for United States claim-
    ants.
  (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 purpose of carrying out ac-
tivities described in subsection (cX4) and section 104(i) not less than
$50,000,000 per fiscal year for each  of fiscal years 1987 and 1988,
not less  than $55,000,000 for fiscal year 1989,  and not  less than
$60,000,000 per fiscal year for each  of fiscal years 1990 and 1991.
Any funds so made available which  are not obligated by the end of
the fiscal year in which  made  available shall  be returned to the
Fund.
  (n) LIMITATIONS ON RESEARCH, DEVELOPMENT, AND  DEMONSTRA-
TION PROGRAM.—
      (1) SECTION sii(b).—For each of the fiscal years 1987, 1988,
    1989,  1990, and 1991,  not more than $20,000,000 of the amounts
    available in the Fund may be used for the purposes of carrying
    out the applied research, development, ana demonstration pro-
    gram for alternative or innovative technologies and training
    program  authorized  under section 311(b) (relating to research,
    development, and demonstration)  other  than basic research.
    Such amounts shall remain available until expended.
      (2)  SECTION  sii(a).—From  the  amounts  available  in the
    Fund,  not more than the following amounts may be used for the
    purposes of section 311(a) (relating to hazardous substance re-
    search, demonstration, and training activities):
          (A) For the fiscal year 1987, $3,000,000.
          (B) For the fiscal year 1988, $10,000,000.
          (C) For the fiscal year 1989, $20,000,000.
          (D) For the fiscal year 1990, $30,000,000.
          (E) For the fiscal year 1991, $35,000,000.
    No more than 10 percent of such amounts  shall be used for
    training under section 311(a) in any fiscal year.
      (3) SECTION sn
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                              60

          (A) For fiscal year 1987, $212,500,000.
          (B) For fiscal year 1988, $212,500,000.
          (C) For fiscal year 1989, $212,500,000.
          (D) For fiscal year 1990, $212,500,000.
          (E) For fiscal year 1991, $212,500,000.
    In addition there is authorized to  be appropriated to the Haz-
    ardous Substance  Superfund for each fiscal year an amount
    equal to so much of the aggregate amount authorized to be ap-
    propriated under this subsection (and paragraph (2) of section
    221(b) of the Hazardous Substance Response Revenue Act of
    1980) as has not been appropriated before the beginning of the
    fiscal year involved.
      (2) COMPUTATION.—The amounts authorized to be appropri-
    ated under paragraph  (1) of this subsection  in a given fiscal
    year shall be  available only to the  extent that such amount ex-
    ceeds the  amount  determined by  the Secretary  under section
    9507(b)(2) of the Internal Revenue Code of 1986 for the prior
    fiscal year.

                      CLAIMS PROCEDURE

  SEC. 112. [(a) All claims which may be asserted against the Fund
pursuant to section 111 of this title shall  be presented in the first
instance to the owner,  operator, or guarantor of the vessel or facili-
ty from which a hazardous substance has been released, if known
to the claimant, and to any other person known to the claimant
who may be liable under section  107 of this title. In any case where
the claim has not been satisfied within sixty days of presentation
in accordance with this subsection, the claimant may elect to com-
mence an action in court against such owner, operator, guarantor,
or other person or to present the claim to the Fund for payment.]
  (a) CLAIMS AGAINST  THE FUND FOR RESPONSE COSTS.-—No claims
may be asserted against the Fund pursuant to section lll(a) unless
such claim is presented in the first instance to the owner, operator,
or guarantor of the vessel or facility from which a hazardous sub-
stance has been released, if known to the claimant, and to any other
person known to the claimant who may be liable under section 107.
In any case where the claim has not been satisfied within 60 days of
presentation in accordance with this subsection, the  claimant may
present the claim to the Fund for payment. No claim against the
Fund may be approved or certified during  the pendency of an action
by the claimant in court to recover costs which are the subject of the
claim.
   t(bXD] (bXV PRESCRIBING FORMS AND PROCEDURES.—The Presi-
dent  shall prescribe appropriate forms and procedures for claims
filed  hereunder,  which  shall include a  provision  requiring  the
claimant to make a sworn verification of the claim to the best of
his knowledge. Any person  who knowingly gives or causes to be
given any false information as a part of any such claim shall, upon
conviction, be fined [up to $5,000 or imprisoned for not more than
one year, or both.]  in accordance with the applicable provisions of
title 18 of the United States Code or imprisoned for not more than 3
years (or not more than 5 years in the case of a second or subsequent
conviction), or both.

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                              61

  [(2XA) Upon receipt of any claim, the President shall as soon as
practicable inform any known affected parties of the claim and
shall attempt to  promote and  arrange a settlement between the
claimant and any person  who may be liable. If the claimant and
alleged liable party or parties can agree upon a settlement, it shall
be final and binding upon the parties thereto, who will be deemed
to have waived all recourse against the Fund.
  [(B) Where a liable  party is  unknown or cannot be determined,
the claimant and  the President shall attempt to arrange settlement
of any claim  against  the Fund. The President is  authorized to
award and make payment of such  a settlement, subject  to such
proof and procedures as he may promulgate by regulation.
  [(C) Except as  provided in subparagraph (D) of this paragraph,
the President shall use the facilities and services of private insur-
ance and claims adjusting organizations or State agencies in imple-
menting this subsection and may contract to pay compensation for
those facilities  and services. Any contract made under the provi-
sions of this paragraph may be made without regard to the provi-
sions of section 3709 of the Revised Statutes, as amended (41 U.S.C.
5), upon a showing by the President that advertising is not reason-
ably practicable.  When the services of a  State agency are used
hereunder, no payment may be made on a claim asserted on behalf
of that State o'r any  of its agencies or subdivisions unless  the pay-
ment has been approved by the President.
  [(D) To the extent necessitated by extraordinary circumstances,
where the services of such private organizations or State  agencies
are inadequate, the President may use Federal personnel to imple-
ment this subsection.
  [(3) If no settlement is reached within forty-five days of filing of
a claim through negotiation pursuant to this section, the President
may, if he is satisfied that the information developed during the
processing of the  claim warrants it, make and pay an award of the
claim. If the claimant is dissatisfied with the award, he may appeal
it in the  manner  provided for in subparagraph (G) of paragraph (4)
of this subsection. If the President declines to make an award, he
shall submit the claim for decision to a member of the Board of Ar-
bitrators established pursuant to paragraph (4).
  [(4XA) Within ninety days  of the  enactment of this  Act, the
President shall establish a Board of Arbitrators to implement this
subsection. The Board shall consist of as many members as the
President may determine  will be necessary  to implement  this sub-
section expeditiously, and he may increase  or decrease the size of
the Board at any time in  his discretion in order to enable it to re-
spond to the demands of such implementation. Each member of the
Board shall be selected through utilization of the procedures of the
American Arbitration Association: Provided, however, That no reg-
ular employee  of the President or any of the Federal departments,
administrations, or agencies to whom he delegated responsibilities
under this Act shall act as a member of the Board.
  [(B) Hearings  conducted hereunder shall be public and shall be
held in such place as  may be agreed upon  by the parties thereto,
or,  in the absence of such agreement, in such place as the Presi-
dent determines,  in his discretion, will be most convenient for the
parties thereto.

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                              62

   5(C) Hearings before a member of the Board shall be informal,
    the rules of evidence prevailing  in judicial proceedings need
not be required. Each member of the Board shall have the power to
administer oaths and to subpena the attendance and testimony of
witnesses and the production of books, records, and other evidence
relative or pertinent to the issues presented  to him for decision.
Testimony  may be  taken  by  interrogatory or deposition.  Each
person appearing before a member of the Board shall have the
right  to counsel. Subpenas shall be issued and enforced in accord-
ance  with  procedures in subsection (d) of section 555 of title 5,
United States Code,  and rules  promulgated by the President. If a
person fails or refuses to obey a subpena, the President may invoke
the aid of the district court of the United States where the person
is found, resides, or transacts business in requiring the attendance
and testimony of the person and the production by him of books,
papers, documents, or any tangible things.
  [(D) In any proceeding before a member of the Board, the claim-
ant shall bear the burden of proving his claim. Should a member of
the Board  determine that further investigations, monitoring, sur-
veys,  testing, or other information gathering would be useful and
necessary in  deciding the claim,  he may request the President in
writing to  undertake such  activities pursuant to section 104(b) of
this title. The President shall dispose of such  a request in his sole
discretion,  taking into account various competing demands and the
availability of the technical  and financial  capacity to conduct such
studies,  monitoring, and  investigations.  Should  the  President
decide to  undertake the requested actions, all time  requirements
for the processing and deciding of claims hereunder shall be sus-
pended until the President reports  the  results  thereof to  the
member of the Board.
  £(E) All costs and expenses approved by the President attributa-
ble to the  employment of any  member of the Board shall be pay-
able from  the Fund, including fees and mileage expenses for wit-
nesses summoned by such members on the same basis! and to the
same extent  as if such witnesses were summoned  before a district
court of the United States.
   [(F) All decisions  rendered by  members of the Board shall be in
writing, with notification to all  appropriate parties, ajid shall be
rendered within ninety days of submission of a claim to a member,
unless all the parties to the claim agree in writing to an extension
or unless the President extends the time limit pursuant to subpara-
graph (I) of this subsection.
   f (G) All decisions rendered  by members of the Board shall be
final, and  any party to the  proceeding may appeal such a decision
within thirty cays  of notification of  the award or decision. Any
such  appeal  shall be made to the Federal district court for the dis-
trict where the arbitral hearing took place. In any such appeal, the
award or decision of the member of the Board shall be considered
binding and  conclusive, and shall not be overturned except for arbi-
trary or  capricious abuse  of  the member's  discretion: Provided,
however, That no such award or decision shall be admissible as evi-
dence of any issue of fact or law in any proceeding brought under
any other provision  of this Act or under any other provision of law.
Nor  shall any prearbitral  settlement reached pursuant to subsec-

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                              63

tion (bX2XA) of this section be admissible as evidence in any such
proceeding.
  [(H) Within twenty days of the expiration of the appeal period
for any arbitral award or decision,  or within twenty days of the
final judicial determination of any appeal taken pursuant to this
subsection, the President shall pay any such award from the Fund.
The President shall determine the method, terms, and time of pay-
ment.
  [(I) If at any time the President  determines that, because of a
large number of claims arising from  any incident or set of inci-
dents, it is in the best interests of the parties concerned,  he may
extend the time for prearbitral negotiation or for rendering an ar-
bitral decision pursuant to this subsection by a period not to exceed
sixty days.  He may also group such  claims for submission to  a
member of the Board of Arbitrators.]
  (2) PAYMENT OR REQUEST FOR HEARING.—The President may, if
satisfied that  the information developed during the  processing of
the claim warrants it,  make and pay an award of the claim, except
that no claim may be  awarded to the extent  that a judicial judg-
ment has been made on the costs that are the subject of the claim. If
the President declines  to pay all or part of the claim, the claimant
may, within 30 days after receiving notice of the President's deci-
sion, request an administrative hearing.
  (3) BURDEN  OF PROOF.—In any proceeding under this subsection,
the claimant shall bear the burden of proving his claim.
  (4) DECISIONS.—All  administrative   decisions  made hereunder
shall be in writing, with notification to all appropriate parties, and
shall be rendered within 90 days of submission of a claim to an ad-
ministrative law judge, unless all the parties  to the claim agree in
writing to an extension or unless the  President, in his discretion, ex-
tends the time limit for a period not to  exceed sixty days.
  (5) FINALITY AND APPEAL.—All administrative decisions hereun-
der shall be final, and any party to the proceeding may appeal  a.
decision within  30 days of notification of the award or  decision.
Any such appeal shall be  made to the Federal district court for the
district where the release or threat of release took place. In any such
appeal,  the decision shall  be considered binding and conclusive, and
shall not be overturned except for arbitrary or capricious abuse of
discretion.
  (6) PAYMENT.—Within 20 days after the expiration  of the appeal
period for any administrative decision concerning an award,  or
within 20 days after the final judicial determination of any appeal
taken pursuant to this subsection, the President shall pay any such
award from the Fund. The President  shall determine the  method,
terms, and time of payment.
  (cXl)  Payment of any claim by the Fund under this section shall
be subject to the United States Government acquiring by subroga-
tion the rights of the claimant to recover those costs of removal or
damages  for  which it has  compensated the claimant from the
person responsible or liable for such  release.
  (2) Any person, including the Fund,  who pays compensation pur-
suant to this  Act to any claimant for damages or costs resulting
from a  release of a hazardous substance shall be subrogated to all

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rights, claims, and causes of action for such damages a.nd costs of
removal that the claimant has under this Act or any other law.
  (3) Upon request of the President,  the Attorney General shall
commence an action on behalf of the Fund to recover any compen-
sation paid by the Fund to any claimant pursuant to this title, and,
without regard to any limitation of liability, all interest, adminis-
trative and adjudicative costs, and attorney's fees incurred by the
Fund by reason of the  claim. Such an action may be commenced
against any owner, operator, or guarantor,  or against any other
person who is  liable,  pursuant to any law, to  the  compensated
claimant or to  the Fund, for the damages or costs for which com-
pensation was paid.
  [(d) No  claim may be presented,  nor may an  action be com-
menced for damages under this title, unless that claim is presented
or action commenced within three years from the  date of the dis-
covery of the loss or the date of enactment of this Act, whichever is
later: Provided, however,  That  the  time   limitations  contained
herein shall  not begin to  run against a minor  until he reaches
eighteen years of age or a legal representative is duly appointed for
him, nor against an incompetent person until his incompetency
ends or a legal representative is duly appointed for him.]
  (d) STA TUTE OF LIMIT A TIONS. —
      (1) CLAIMS FOR RECOVERY OF COSTS.—No claim may be  pre-
    sented  under this section for recovery of the costs referred to in
    section 107(a) after the date 6 years after the date of completion
    of all response action.
      (2) CLAIMS FOR  RECOVERY OF DAMAGES.—No claim may be
    presented under this section for recovery  of the damages re-
    ferred to in section 107(a) unless the claim is presented within 3
    years after  the later of the following:
          (A) The date of the discovery of the  loss and its connec-
        tion  with the release in question.
          (B) The date on  which final regulations are promulgated
        under section 301(c).
      (3) MINORS AND  INCOMPETENTS.—The time limitations  con-
    tained herein shall not begin to run—
          (A) against  a minor until  the earlier of the date when
        such minor reaches 18 years of age or the date on which a
        legal representative is duly appointed for the minor, or
          (B) against an incompetent person  until the earlier of the
        date on which such person's incompetency ends or the date
        on which a legal representative is duly appointed for such
        incompetent person.
  (e) Regardless of any State statutory or common law to the  con-
trary, no person who asserts a claim against the Fund pursuant to
this title shall be deemed  or held to  have waived any other claim
not covered or assertable against the Fund under this title arising
from the same incident, transaction, or set of circumstances, nor to
have split  a cause  of action. Further, no person asserting a claim
against the Fund pursuant to this title shall as a result of any de-
termination  of a question of fact or law made in  connection with
that claim be deemed or held to be collaterally stopped from  rais-
ing such question in connection with  any other claim not covered

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                               65

or assertable against  the  Fund  under this title arising from the
same incident, transaction, or set of circumstances.
  (f)  DOUBLE RECOVERY PROHIBITED.—Where the President  has
paid  out of the Fund for any response costs or any costs specified
under section lll(c) (1) or (2), no other claim may be paid out of the
Fund for the same costs.

               LITIGATION, JURISDICTION, AND VENUE

  SEC. 113. (a) Review of  any regulation promulgated under  this
Act may be had upon application by any interested person only in
the Circuit Court of Appeals of the United States for the District of
Columbia.  Any such application  shall be made within ninety  days
from  the date of promulgation  of such regulations.  Any  matter
with  respect to which review could have been obtained under  this
subsection shall not  be  subject to judicial review  in  any civil or
criminal proceeding for enforcement or to obtain damages or recov-
ery of response costs.
  (b)  Except as provided in [subsection] subsections (a) and (h) of
this section, the United States district courts  shall have exclusive
original jurisdiction over all  controversies arising under this Act,
without regard to the citizenship of the parties or the amount in
controversy. Venue shall lie in any district in  which the release or
damages  occurred, or in  which the defendant resides, may be
found, or has his principal office. For the purposes of this section,
the Fund shall reside in the District of Columbia.
  (c)  The provisions of subsections (a) and (b) of this section shall
not apply to any controversy or other matter resulting from the as-
sessment of collection of any tax, as provided by title II of this Act,
or to the review of any regulation promulgated under  the Internal
Revenue Code of 1954.
  (d)  No provision of this Act shall be deemed or held  to moot any
litigation concerning  any  release  of any hazardous substance, or
any damages associated therewith, commenced prior to enactment
of this Act.
  (e)  NATIONWIDE  SERVICE OF  PROCESS.—In any action  by the
United States under this Act, process may be served in any district
where the  defendant is found, resides, transacts business, or has ap-
pointed an agent for the service of process.
  (f) CONTRIBUTION.—
      (1)  CONTRIBUTION.—Any person may seek contribution from
    any other person  who is  liable or potentially liable under sec-
    tion 107(a), during or following any civil  action under section
    106 or under section 107(a). Such claims shall be brought in ac-
    cordance with this section and the Federal Rules of Civil Proce-
    dure, and shall be governed by Federal law. In resolving contri-
    bution claims, the  court may allocate response  costs  among
    liable parties using such  equitable factors as the court deter-
    mines are appropriate.  Nothing in this subsection  shall dimin-
    ish the right of any person to bring an action for contribution
    in the absence of a civil action under section 106 or section 107.
       (2) SETTLEMENT.—A person who has resolved its liability to
    the United States or a State in an administrative  or judicially
    approved settlement shall not be liable for claims  for contribu-

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  tion regarding matters addressed in the settlement. Such settle-
  ment does not discharge any of the other potentially liable per-
  sons unless its terms so provide, but it reduces the potential li-
  ability of the others by the amount of the settlement.
    (3) PERSONS NOT PARTY TO SETTLEMENT.—(A) If the  United
  States  or a State has obtained less than complete relief from a
  person who has resolved its liability to the United States or the
  State  in an  administrative or judicially approved settlement,
  the United States or the State may bring an action against any
  person who has not so resolved its liability.
    (B)  A person  who  has resolved its liability  to  the  United
  States  or a State for some or all of a response action or for some
  or all  of the costs of such action in an administrative or judi-
  cially  approved  settlement may seek contribution  from any
  person who is not party to a settlement referred to in paragraph
  (2).
    (C) In any action under this paragraph, the rights  of any
  person who  has resolved its liability to the United States or a
  State shall be subordinate to the rights of the United States or
  the State. Any  contribution action brought  under  this para-
  graph shall be governed by Federal law.
(g) PERIOD IN WHICH ACTION MAY BE BROUGHT.—
    (1) ACTIONS  FOR NATURAL RESOURCE DAMAGES.—Except  as
  provided in  paragraphs  (3) and  (4),  no action may be com-
  menced for damages  (as defined in  section 101(6)) under this
  Act, unless  that  action is commenced within 3 years after the
  later of the following:
         (A) The date of the discovery of the  loss  and its  connec-
      tion with the release in question.
         (B) The date on which regulations are promulgated under
      section 301(c).
  With  respect to  any facility  listed on the National Priorities
  List C'NPL"), any Federal facility  identified  under section 120
  (relating to Federal facilities), or any vessel or facility at which
  a  remedial action under this Act is otherwise scheduled,  an
  action for damages under this Act must be commenced within 3
  years after the completion of the remedial action (excluding op-
  eration and maintenance activities) in lieu of the dates referred
  to in  subparagraph (A) or  (B). In  no event may an action for
  damages under this Act with respect to such a vessel or facility
  be commenced (i) prior to 60 days after the Federal or State nat-
  ural resource trustee provides to the  President and the poten-
  tially  responsible party a notice  of intent to file  suit, or  (ii)
  before selection of the remedial action if the President is dili-
  gently proceeding with a remedial investigation and feasibility
  study  under section 104(b) or section 120 (relating to Federal fa-
  cilities). The limitation in the preceding sentence on commenc-
  ing an action before giving notice  or before selection of the re-
  medial action does not apply to actions filed on or before the
  enactment of the Superfund Amendments and Reauthorization
  Act of 1986.
     (2)  ACTIONS FOR RECOVERY OF COSTS.—An initial action  for
  recovery of  the  costs referred to  in section 107 must  be com-
  menced—

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                              67

         (A) for a removal action,  within 3 years after completion
       of the removal action, except that such cost recovery action
       must be brought within  6  years after a determination to
       grant a  waiver under section 104(cXlXC) for continued re-
       sponse action; and
         (B) for a remedial action, within 6 years after initiation
       of physical  on-site construction of  the remedial action,
       except that,  if the remedial  action is initiated within  3
       years after the completion of the removal action, costs in-
       curred in the removal action  may be recovered in  the cost
       recovery action brought under this subparagraph.
    In any such  action described in this subsection, the court shall
    enter a declaratory judgment on liability for response  costs or
    damages that will be binding on  any subsequent action or ac-
    tions to recover further  response costs or damages. A subsequent
    action or actions under section 107 for further response costs at
    the vessel or facility may be maintained at any time during the
    response action, but must be commenced no later than 3 years
    after the date  of completion  of all response  action. Except as
    otherwise provided in this paragraph, an action may  be com-
    menced under section 107 for  recovery of costs at any time after
    such costs have been incurred.
     (3)  CONTRIBUTION.—No  action  for contribution for  any re-
    sponse costs  or damages may  be commenced more than 3 years
    after—
         (A} the date of judgment in  any action under this Act for
       recovery of such costs or damages, or
         (BJ the date  of  an administrative  order under section
       122(g) (relating to de minimis settlements) or 122(h) (relat-
       ing to cost recovery settlements) or entry of a judicially ap-
       proved settlement with respect to such costs or damages.
     (4) SUBROGATION.—No action  based on rights subrogated pur-
    suant to this section by reason  of payment of a claim may be
    commenced under this title more than 3 years after the date of
    payment of such claim.
     (5)  ACTIONS  TO RECOVER INDEMNIFICATION PAYMENTS.—Not-
    withstanding any other provision of this subsection, where  a
    payment pursuant to an  indemnification agreement with a re-
    sponse action contractor is made  under section  119, an action
    under section 107 for recovery of such indemnification payment
    from a potentially responsible party may be brought at any time
    before the expiration of 3 years from the date on which such
    payment is made.
     (6) MINORS AND INCOMPETENTS.—The time limitations con-
    tained herein shall not  begin to  run—
         (A) against a minor until  the earlier of the date  when
       such minor reaches 18 years of age or the date on which a
       legal representative is duly appointed for such minor, or
         (B) against an incompetent person until the earlier of the
       date on  which such incompetent's incompetency ends or the
       date on which a legal representative is duly appointed for
       such incompetent.
  (h) TIMING OF REVIEW.—No Federal court shall have jurisdiction
under Federal law other than under section 1332 of title 28 of the

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                               68

United States Code (relating to diversity of citizenship jurisdiction)
or under State law which is applicable or relevant and appropriate
under section 121 (relating to cleanup standards) to review any chal-
lenges to removal or remedial action selected under section 104, or to
review any order issued under section 106(a), in any action except
one of the following:
      (1) An action under section  107 to recover response costs or
    damages or for contribution.
      (2) An action to enforce an order issued under section 106(a)
    or to recover a penalty for violation of such order.
      (3) An action for reimbursement under section 106(bX2).
      (4) An action under section 310 (relating to citizens suits) al-
    leging that the removal or remedial action taken under section
    104 or secured under section 106 was in violation of any re-
    quirement of this Act. Such an action may not be brought with
    regard to a removal where a remedial action is to be undertak-
    en at the site.
      (5) An action under section 106 in which the United States
    has moved to compel a remedial action.
  (i) INTERVENTION.—In any action commenced  under this Act or
under the Solid  Waste Disposal Act in a court of the United States,
any person  may intervene as a matter of right  when  such person
claims an interest relating to the subject of the action and is so situ-
ated that the disposition of the action may,  as a practical matter,
impair or impede the person's ability to protect that interest, unless
the President or  the State shows that  the person's interest is ade-
quately represented by existing parties.
  (j) JUDICIAL REVIEW.—
      (1) LIMITATION.—In any judicial action under this Act, judi-
    cial  review  of any issues  concerning the adequacy of any re-
    sponse action taken or ordered by the President shall be limited
    to the administrative record. Otherwise applicable principles of
    administrative law shall govern whether any supplemental  ma-
    terials may be considered py the court.
      (2)  STANDARD.—In considering objections raised  in any judi-
    cial  action  under this Act,  the  court shall uphold the Presi-
    dent's decision in selecting the response action unless the object-
    ing party can  demonstrate, on the administrative  record, that
    the decision was arbitrary and capricious or otherwise not in
    accordance with law.
      (3) REMEDY.—If the court finds  that the selection of the re-
    sponse action was arbitrary and capricious or otherwise not in
    accordance  with law, the court shall award (A)  only the re-
    sponse costs or damages that are not inconsistent with the na-
     tional contingency plan, and (B) such other relief as is consist-
    ent with the National Contingency Plan.
      (4) PROCEDURAL ERRORS.—In  reviewing alleged procedural
     errors,  the  court  may  disallow  costs or damages  only if the
     errors were so-serious and related to matters of such central rel-
    evance  to the  action that the action would nave  been signifi-
     cantly changed had such errors not been made.
   (k) ADMINISTRATIVE RECORD AND PARTICIPATION PROCEDURES.—
      (1) ADMINISTRATIVE RECORD.—The President shall  establish
     an administrative record upon which the President shall  base

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the selection of a response action.  The administrative record
shall be available to the public at or near the facility at issue.
The President also may place duplicates of the administrative
record at any other location.
  (2) PARTICIPATION PROCEDURES.—
      (A) REMOVAL  ACTION.—The President shall promulgate
    regulations in accordance  with  chapter 5 of title 5 of the
     United States Code establishing procedures for the appro-
    priate participation of interested persons in the develop-
    ment of the administrative record on which  the President
    will base the selection of removal actions and on which ju-
    dicial review of removal actions  will be based.
      (B) REMEDIAL ACTION.—The President shall provide for
    the participation of interested persons,  including potential-
    ly responsible parties, in the development of the adminis-
    trative record on which the President will base the selection
    of remedial actions and  on which judicial review of reme-
    dial actions will be based. The procedures developed under
    this subparagraph  shall include,  at a  minimum,  each of
    the following:
          (i) Notice  to potentially affected persons and the
        public, which shall be accompanied by a  brief analysis
        of the plan and alternative plans that were considered.
          (ii) A reasonable opportunity to comment and provide
        information regarding the plan.
          (Hi) An opportunity for a public meeting in  the af-
        fected area,  in  accordance with section 117(aX2) (relat-
        ing to public participation).
          (iv) A  response to  each of the significant comments,
        criticisms, and new  data submitted in written or oral
        presentations.
          (v) A statement of the basis and purpose of the select-
        ed action.
    For purposes of this subparagraph,  the administrative
     record shall include all items developed and received under
     this subparagraph  and  all items described in the second
    sentence of section  117(d).  The President shall promulgate
     regulations in accordance  with chapter 5 of title 5 of the
     United States Code to carry out  the requirements  of this
    subparagraph.
      (C) INTERIM RECORD.—Until such regulations under sub-
    paragraphs (A)  and  (B) are promulgated, the administra-
     tive record shall consist of all items developed and received
    pursuant to current procedures for selection of the response
     action,  including procedures for the participation of inter-
     ested parties and the public. The development of an admin-
     istrative record  and  the selection  of response action under
     this Act shall not include an adjudicatory hearing.
      (D) POTENTIALLY RESPONSIBLE  PARTIES.—The President
     shall make reasonable efforts to identify and notify poten-
     tially responsible parties as early as possible before selec-
     tion of a response  action. Nothing in this paragraph  shall
     be construed to be a defense to liability.

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                              70

  (1) NOTICE OF ACTIONS.—Whenever any action  is brought under
this Act in a court of the United States by a plaintiff other than the
United States,  the plaintiff shall provide a copy of the complaint to
the Attorney General of the United States and to the Administrator
of the Environmental Protection Agency.

                  RELATIONSHIP TO OTHER LAW

  SEC. 114. (a)  Nothing in this Act shall be construed or interpreted
as preempting any State from imposing  any additional liability or
requirements with respect to the release of hazardous substances
within such State.
  (b) Any person who receives compensation for removal costs or
damages or claims pursuant to this Act shall be precluded from re-
covering compensation for the  same removal costs or damages or
claims pursuant to any other State or Federal law. Any person who
receives compensation for removal costs or damages or claims pur-
suant to any other Federal or State law shall be  precluded from
receiving compensation for the same removal costs or damages or
claims as provided in this Act.
   [(c) Except as provided in this Act, no person may be required to
contribute to any fund, the purpose of which is to pay compensa-
tion  for  claims for any costs  of response  or damages  or  claims
which may be  compensated under this title.  Nothing in this section
shall  preclude  any State from using general revenues  for such a
fund, or from  imposing a  tax or fee upon any person or upon any
substance in order to finance the purchase or prepositioning of haz-
ardous substance response equipment or other preparations for the
response to  a  release of hazardous substances which affects such
State.]
  (c) RECYCLED OIL.—
      (1) SERVICE STATION DEALERS, ETC.—No person (including the
    United States or any State} may recover, under the authority of
    subsection  (aX3)  or (aX4) of section 107, from a service station
    dealer for  any response costs or damages resulting from a  re-
    lease or threatened release of recycled oil, or use  the authority
    of section  106 against  a service station dealer other than  a
    person described  in subsection (aXl) or  (aX2) of section  107,  if
    such recycled oil—
          (A)  is  not  mixed  with any other hazardous substance,
        and
          (B)  is stored, treated, transported, or otherwise managed
        in compliance  with  regulations or  standards promulgated
        pursuant to section  3014 of the Solid  Waste Disposal Act
        and other applicable authorities.
    Nothing in this paragraph shall affect or modify in any way
    the obligations or liability of any person under any other provi-
    sion of State or Federal law, including common law, for dam-
    ages, injury,  or  loss resulting from a release or threatened re-
    lease of any hazardous  substance or for removal or remedial
    action or the costs of removal or remedial action.
       (2) PRESUMPTION.—Solely for the purposes of this subsection,
    a service station  dealer may presume that a small quantity  of
    used oil is not mixed with other hazardous substances if it—

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                               71

          (A) has been removed from  the  engine  of a light duty
        motor vehicle or household appliances by the owner of such
        vehicle or appliances, and
          (B) is presented, by such owner, to the dealer for collec-
        tion, accumulation, and delivery to an oil recycling facility.
      (3) DEFINITION.—For purposes  of this subsection, the terms
    "used oil" and  "recycled  oil" have the same meanings as set
    forth  in sections 1004(36) and 1004(37) of the Solid Waste Dis-
    posal Act and regulationspromulgatedpursuant to that Act.
      (4) EFFECTIVE DATE.—The effective date of paragraphs (1) and
    (2) of this subsection shall be the effective date of regulations or
    standards promulgated under section 3014 of the Solid Waste
    Disposal Act that include,  among  other provisions, a  require-
    ment  to conduct corrective action to respond to any releases of
    recycled oil under subtitle C or subtitle I of such Act.
  (d) Except as provided  in this  title,  no owner or operator  of a
vessel or facility who establishes and maintains evidence of finan-
cial responsibility in accordance with  this title  shall  be  required
under any State or local  law,  rule,  or regulation  to establish  or
maintain  any other  evidence  of financial responsibility in connec-
tion with  liability for the release of a hazardous substance from
such vessel or  facility.  Evidence of compliance with the financial
responsibility requirements of this title  shall be accepted by a State
in lieu of any other requirement of financial responsibility imposed
by such State in connection with  liability for the release of a haz-
ardous substance from such vessel or facility.

            AUTHORITY TO DELEGATE, ISSUE REGULATIONS

  SEC. 115. The President is authorized to delegate and assign any
duties or powers imposed upon or assigned to him  and to promul-
gate any regulations necessary to carry out the provisions of this
title.
SEC. US. SCHEDULES.
  (a) ASSESSMENT AND LISTING OF FACILITIES.—It shall be a goal of
this Act that, to the maximum extent practicable—
      (1) not later than January  1, 1988, the President shall com-
    plete preliminary assessments of all facilities that are contained
    (as of the date of enactment of the Superfund Amendments and
    Reauthorization Act  of 1986) on the  Comprehensive Environ-
    mental Response,  Compensation,  and  Liability  Information
    System (CERCLIS} including in each assessment a statement as
    to whether a site inspection is necessary and by whom it should
    be carried out; and
      (2) not later than January 1, 1989, the President  shall assure
    the completion of site inspections at all facilities for which the
    President has stated a site inspection is necessary  pursuant to
    paragraph (1).
  (b)  EVALUATION.—Within 4 years after enactment of the Super-
fund  Amendments and Reauthorization Act of 1986, each facility
listed (as  of the date of such  enactment) in the CERCLIS shall be
evaluated if the President determines that  such evaluation is war-
ranted on the basis  of a site  inspection or  preliminary assessment.
The evaluation shall be in accordance  with  the criteria established

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in section 105 under the National Contingency Plan for determining
priorities  among release for inclusion  on the National  Priorities
List. In the case of a facility listed in the CERCLIS after the enact-
ment of the  Superfund Amendments and Reauthorization Act of
1986, the facility shall be evaluated within 4 years after the date of
such listing if the President determines that such evaluation is war-
ranted on the basis  of a site inspection or preliminary assessment.
  (c) EXPLANATIONS.—If any of the goals established by subsection
(a) or (b) are  not achieved,  the President shall publish an explana-
tion  of why such action could not be completed by the specified date.
  (d) COMMENCEMENT OF RI/FS.—The President shall assure that
remedial  investigations and feasibility  studies (RI/FS)  are com-
menced for facilities listed on  the National Priorities List, in addi-
tion  to those commenced prior  to the date of enactment of the Super-
fund Amendments and Reauthorization Act  of 1986,  in accordance
with the following schedule:
      (1) not  fewer than 275 by the date 36 months after the date of
    enactment of the Superfund Amendments and Reauthorization
    Act of 1986, and
      (2) if the requirement of paragraph  (1) is not met,  not fewer
    than an  additional 175 by the date 4 years after such date of
    enactment, an additional  200 by the date  5  years after such
    date of enactment, and a  total of 650  by the date 5 years after
    such date of enactment.
  (e) COMMENCEMENT OF REMEDIAL ACTION.—The President shall
assure that substantial and continuous physical on-site remedial
action commences at facilities  on the National Priorities List, in ad-
dition to those facilities  on which remedial  action has commenced
prior to the date of enactment of the Superfund Amendments and
Reauthorization Act of 1986, at a rate not fewer than:
      (1) 175 facilities during the first 36-month period after enact-
    ment of this subsection; and
      (2) 200 additional facilities during the following 24  months
    after such 36-month period.
SEC.  117. PUBLIC PARTICIPATION.
  (a) PROPOSED PLAN.—Before adoption of any plan for remedial
action to be undertaken by the President, by a State, or by any other
person,  under section 104, 106,  120, or 122, the President or State, as
appropriate, shall take both of the following actions:
      (1) Publish a  notice and brief analysis of the proposed plan
     and make such plan available to the public.
      (2) Provide a reasonable opportunity for submission of written
     and oral comments and an opportunity for a public  Beefing at
     or near the facility at issue regarding the proposed pu-.i and re-
    garding  any proposed findings under section 121(dX4J (relating
     to cleanup standards).  The President or the State shall keep a
     transcript of the meeting and make such transcript available to
     the public.
 The notice and analysis published  under paragraph (1) shall in-
 clude sufficient information as may be necessary  to provide a rea-
 sonable explanation of the proposed plan and alternative proposals
 considered.

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                               73
  (b) FINAL PLAN.—Notice of the final remedial action plan adopted
snail be published and the plan shall be  made  available  to the
public before commencement of any  remedial action.  Such final
plan shall be  accompanied  by a  discussion of any significant
changes  (and the reasons for such  changes) in the proposed plan
and a response to each of the significant comments, criticisms, and
new data submitted in wi itten  or oral presentations under subsec-
tion (a).
  (c) EXPLANATION OF DIFFERENCES.—After adoption of a final re-
medial action plan—
      (1) if any remedial action  is taken,
      (2) if any enforcemer t action under section 106 is taken, or
      (3) if any settlemen t  or consent decree  under section  106 or
     section 122 is entered into,
and if such  action, settlei tent,  or decree differs in any significant
respects from the final pla i, the President or the State shall publish
an  explanation  of the significant differences and the reasons such
changes  were made.
  (d) PUBLICATION.—For  he purposes of this section,  publication
shall include, at a minim im, publication  in a major local newspa-
per  of general circulation.  In  addition, each item developed,  re-
ceived, published,  or made available to the public under this section
shall be available for put lie inspection and copying at or near the
facility at issue.
  (e) GRANTS FOR TECHNICAL ASSISTANCE.—
      (1) AUTHORITY.—Subject to such amounts as are provided in
     appropriations Acts aid in accordance with rules promulgated
     by the President,  the President may make grants available to
     any group of individv als which may be affected by a release or
     threatened release at < my facility which is listed on the Nation-
     al Priorities List  under the National  Contingency Plan. Such
     grants may be used ty obtain technical assistance in  interpret-
     ing  information with regard to  the nature of the hazard, reme-
     dial investigation ani feasibility study, record of decision, re-
     medial design, selection and construction of  remedial action,
     operation and mainttnance, or removal action at such facility.
      (2) AMOUNT.—The amount of any grant  under this subsection
     may not exceed $50,0 W for a single grant recipient. The Presi-
     dent may waive the $50,000 limitation in any case where such
     waiver is necessary tc carry out the purposes of this subsection.
     Each grant recipient shall be required, as a  condition  of the
     grant, to contribute i \t  least 20 percent of the total of costs of
     the  technical assistance  for which such grant is made. The
     President may waive the 20 percent contribution requirement if
     the  grant  recipient  demonstrates  financial  need  and such
     waiver is necessary to facilitate public participation in the selec-
     tion of remedial action at the facility. Not more than one grant
     may be made under this subsection with respect to a single fa-
     cility, but the grant may be renewed to facilitate public partici-
     pation at all stages of remedial action.
 SEC. 118.  HIGH PRIORITY FOR DRINKING WATER SUPPLIES.
  For purposes of taking action under section 104 or 106 and listing
 facilities on  the National Priorities List, the President shall give a

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high priority to facilities where the release of hazardous substances
or pollutants or contaminants has resulted in the closing of drink-
ing water  wells or has contaminated  a principal drinking  water
supply.
SEC. 119. RESPONSE ACTION CONTRACTORS.
  (a) LIABILITY OF RESPONSE ACTION CONTRACTORS.—
      (1) RESPONSE ACTION CONTRACTORS.—A person  who  is a re-
    sponse action contractor with respect to any release or threat-
    ened release of a hazardous substance or pollutant or contami-
    nant from a vessel or facility shall  not be liable under this title
    or under any other Federal law to any person for injuries, costs,
    damages, expenses, or other liability (including but not limited
    to claims for indemnification or contribution and  claims  by
    third parties for death, personal injury, illness  or  loss of or
    damage to property or economic  loss) which results from such
    release or threatened release.
      (2) NEGLIGENCE, ETC.—Paragraph (1) shall not apply in the
    case of a release that is caused by conduct of the response action
    contractor which is negligent, grossly negligent, or which consti-
    tutes intentional misconduct.
      (3) EFFECT  ON WARRANTIES; EMPLOYER LIABILITY.—Nothing
    in this subsection shall affect the liability of any person  under
    any warranty under Federal, State, or common law.  Nothing in
    this subsection shall affect the liability of an employer who is a
    response action  contractor  to any employee of such employer
    under  any provision of law, including any provision of any law
    relating to worker's compensation.
      (4) GOVERNMENTAL EMPLOYEES.—A state  employee or an em-
    ployee  of a political subdivision  who provides services  relating
    to response action while acting within the scope of his authority
    as  a governmental employee shall have the  same  exemption
    from liability (subject  to the other provisions of this section} as
    is provided to the response action contractor under this section.
   (b) SAVINGS PROVISIONS.—
      (1) LIABILITY  OF OTHER PERSONS.—The defense provided  by
    section 107(b)(3) shall not be available to any potentially respon-
    sible party with respect to any costs or damages caused by any
    act or omission  of a response action contractor. Except as pro-
     vided  in subsection (aX4) and the preceding sentence, nothing in
     this section shall affect the liability under this  Act or  under
     any other Federal or State law of any person, other than a  re-
     sponse action contractor.
      (2) BURDEN OF  PLAINTIFF.—Nothing  in this  section shall
     affect  the plaintiff's burden of establishing liability under this
     title.
   (c) INDEMNIFICATION.—
       (1) IN GENERAL.—The President  may agree to  hold harmless
     and indemnify  any response action contractor meeting the  re-
     quirements of this subsection against any liability (including
     the expenses of litigation or settlement) for negligence arising
     out of the contractor's performance in  carrying out  response
     action activities under  this title,  unless  such  liability was

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caused by conduct of the contractor which was grossly negligent
or which constituted intentional misconduct.
  (2) APPLICABILITY.—This subsection shall apply only  with re-
spect  to a response action carried out  under written  agreement
with—                         i
      (A) the President;         I
      (B) any Federal agency;
      (C) a State or political subdivision  which  has entered
    into a contract or cooperative agreement in accordance with
    section 104(dXV of this title; or
      (D) any  potentially  responsible party  carrying out  any
    agreement  under section 122 (relating to settlements) or sec-
    tion 106 (relating to abatement).
  (3) SOURCE OF FUNDING.—This subsection  shall not be subject
to section 1301 or 1341 of title 31 of the United States Code or
section 3732 of the Revised  Statutes (41 U.S.C. IV or to section
3 of the Superfund Amendments and Reauthorization Act of
1986.  For purposes of section 111, amounts expended pursuant
to this  subsection for indemnification of any response action
contractor (except with respect to federally owned or operated
facilities) shall be considered governmental  response costs  in-
curred pursuant to section 104- If sufficient funds are unavail-
able in  the  Hazardous Substance Superfund  established  under
subchapter A of chapter 98 of the Internal  Revenue  Code of
1954 to make payments pursuant  to such indemnification or if
the Fund is repealed, there are authorized to be appropriated
such amounts as may be necessary to make such payments.
  (4)  REQUIREMENTS.—An  indemnification agreement  may be
provided under this subsection only if the President determines
that each of the following requirements are  met:
      (A) The liability  covered by the indemnification  agree-
    ment exceeds or is not covered by  insurance available, at a
    fair and reasonable price, to the contractor at the time the
    contractor enters into  the  contract  to  provide response
    action, and adequate insurance to  cover such liability is not
    generally available at the time the response action contract
    is entered into.
      (B) The  response action contractor has made diligent ef-
    forts to obtain insurance coverage  from non-Federal sources
    to cover such liability.
      (C} In the case of a response action contract covering more
    than one facility, the response action  contractor agrees to
    continue to make such diligent efforts each  time  the con-
    tractor begins work under the contract at  a new facility.
   (5) LIMIT A TIONS. —
      (A) LIABILITY COVERED.—Indemnification under this sub-
    section  shall apply only to response action contractor  liabil-
    ity which results from a release of any hazardous substance
    or pollutant or contaminant if such release arises out of re-
    sponse action activities.
      (B) DEDUCTIBLES AND LIMITS.—An indemnification agree-
    ment under this subsection shall include deductibles and
    shall place limits on the amount of indemnification to be
    made available.

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     (C)  CONTRACTS  WITH  POTENTIALLY  RESPONSIBLE  PAR-
    TIES.—
          (i) DECISION TO INDEMNIFY.—In deciding whether to
        enter  into an indemnification agreement  with a  re-
        sponse action contractor carrying out a written contract
        or agreement with  any potentially responsible party,
        the President shall determine an amount which the po-
        tentially responsible party is able to indemnify the con-
        tractor. The President may enter into such an indemni-
        fication agreement  only  if the President  determines
        that such amount of indemnification is  inadequate to
        cover any reasonable potential liability of the contrac-
        tor arising out of the contractor's negligence in per-
        forming the contract or agreement with such party. The
        President shall make the determinations in the preced-
        ing sentences (with respect to the amount and the ade-
        quacy of the amount} taking into account the  total  net
        assets and resources of potentially responsible parties
        with respect  to the facility at the time of such determi-
        nations.
          (ii)  CONDITIONS.—The  President  may pay  a  claim
        under  an indemnification  agreement referred  to   in
        clause (i) for the amount determined under clause (i)
        only if the contractor has exhausted all administrative,
        judicial, and common law claims for indemnification
        against all potentially responsible parties participating
        in the clean-up of the facility with respect to the liabil-
        ity of the contractor arising out of the contractor's neg-
        ligence in performing the contract or agreement with
        such party. Such indemnification  agreement  shall re-
        quire  such contractor to pay any deductible established
        under subparagraph (B)  before the contractor may re-
        cover any  amount  from  the  potentially  responsible
        party or under the indemnification agreement.
      (D) RCRA FACILITIES.—No  owner or operator of a facility
    regulated under the Solid Waste Disposal Act may be in-
    demnified under  this subsection with respect to such facili-
    ty-
      (E) PERSONS RETAINED OR  HIRED.—A person retained or
    hired by a person described in subsection (eX%XB) shall be
    eligible for indemnification  under this subsection only if
    the  President specifically approves  of  the retaining  or
    hiring of such person.
  (6) COST RECOVERY.—For purposes of section 107, amounts ex-
pended pursuant to  this subsection for indemnification of any
person who is a response action contractor  with  respect to  any
release or threatened release shall be considered a cost of re-
sponse incurred by the United States Government with respect
to such release.
  (7)  REGULATIONS.—The President  shall  promulgate regula-
tions  for carrying out the provisions of this subsection. Before
promulgation of the regulations, the President shall develop
guidelines to carry out this section. Development of such guide-
lines shall include reasonable opportunity for public comment.

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                               77

      (8) STUDY.—The Comptroller General shall conduct a study in
    the fiscal year ending September 30, 1989, on the application of
    this subsection,  including whether indemnification agreements
    under this subsection are being used,  the number of claims that
    have  been  filed under such agreements, and the need for this
    subsection. The Comptroller General shall report the findings of
    the study to Congress no later than September 30, 1989.
  (d) EXCEPTION.—The exemption provided under subsection (a) and
the authority of the President to offer indemnification under subsec-
tion (c) shall not  apply  to any person covered by the provisions of
paragraph (1),  (2), (3),  or (4) of section 107(a) with respect to the re-
lease  or threatened release concerned if such person would be cov-
ered by such provisions even if such person had not carried out any
actions referred to in subsection (e) of this section.
  (e) DEFINITIONS.—For purposes of this section—
      (1)  RESPONSE ACTION CONTRACT.—The term  "response action
    contract" means any written contract or agreement entered into
    by a  response action contractor (as defined in paragraph (2XA)
    of this subsection) with—
          (A) the President;
          (B) any Federal agency;
          (C) a State or political subdivision which has entered
        into a contract or cooperative agreement in accordance with
        section 104(d)(l) of this Act; or
          (D)  any potentially responsible party carrying out an
        agreement under section 106 or 122;
    to provide any remedial action under  this Act at a facility
    listed on the National Priorities List, or any removal under this
    Act, with respect to  any release or threatened release of a haz-
    ardous  substance or pollutant or contaminant from the facility
    or  to provide any evaluation,  planning, engineering, surveying
    and mapping, design, construction, equipment, or any ancillary
    services thereto for such facility.
      (2)  RESPONSE  ACTION  CONTRACTOR.—The   term   "response
    action contractor" means—
          (A) any—
               (i) person who enters  into  a response action contract
             with respect to any release or threatened release of a
             hazardous substance or pollutant or contaminant from
             a  facility and is carrying out such contract; and
               (ii) person, public or nonprofit  private entity, con-
             ducting a  field  demonstration pursuant  to  section
             311(b); and
          (B) any person who is  retained or hired by a person de-
        scribed in subparagraph (A) to provide any services relating
        to a response action,
      (3) INSURANCE.—The term "insurance" means liability insur-
    ance  which is fair and reasonably priced, as determined  by the
    President,  and which is made available at the time the contrac-
    tor enters  into the response action contract  to provide response
    action.
  (f) COMPETITION.—Response action contractors and subcontractors
for program management,  construction management, architectural
ana engineering, surveying and mapping, and related services shall

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be selected in accordance with title IX of the Federal Property and
Administrative Services Act of 1949. The  Federal selection proce-
dures shall apply to appropriate contracts negotiated by all Federal
governmental agencies involved in carrying out this Act. Such proce-
dures shall be followed by response action  contractors and subcon-
tractors.
SEC. 120. FEDERAL FACILITIES.
  (a) APPLICATION OF ACT TO FEDERAL GOVERNMENT.—
      (V IN GENERAL.—Each department, agency, and instrumental-
     ity  of the United  States  (including the executive, legislative,
     and judicial branches of government} shall be subject to,  and
     comply with, this  Act  in  the same  manner and to  the same
     extent, both procedurally and substantively, as any nongovern-
     mental entity, including liability under section 107 of this  Act.
     Nothing in this section shall be construed to affect the liability
     of any person or entity under sections 106 and 107.
      (2) APPLICATION OF REQUIREMENTS TO FEDERAL FACILITIES.—
     All guidelines, rules, regulations, and criteria which are appli-
     cable to preliminary assessments carried out under this Act for
     facilities at which hazardous substances are located, applicable
     to evaluations of such facilities under the National Contingency
     Plan, applicable to inclusion on  the National Priorities List, or
     applicable to remedial  actions at such facilities shall also be
     applicable to facilities  which are  owned  or operated by a de-
     partment, agency, or instrumentality of the United States in the
     same manner and to the extent as such guidelines, rules, regu-
     lations, and criteria are applicable  to other facilities. No de-
     partment, agency, or instrumentality of the United States  may
     adopt or utilize any such guidelines,  rules, regulations, or crite-
     ria  which are inconsistent with the guidelines,  rules,  regula-
     tions,  and criteria  established by the Administrator under this
     Act.
      (3) EXCEPTIONS.—This subsection shall not apply to the extent
     otherwise provided in  this section with  respect to applicable
     time periods. This  subsection shall  also  not  apply to  any re-
     quirements  relating to bonding,  insurance, or financial respon-
     sibility.  Nothing in this  Act shall  be construed to  require a
     State  to comply with section 104(cX3)  in  the case of a facility
     which is owned or operated by  any  department,  agency, or in-
     strumentality of the United States.
      (4) STATE LAWS.—State  laws concerning removal and remedi-
     al  action, including State laws regarding enforcement, shall
     apply to removal and remedial action at facilities owned or op-
     erated by a department,  agency,  or instrumentality  of the
     United States when such facilities are not included on the Na-
     tional Priorities List. The preceding  sentence shall not apply to
     the extent a State  law would apply any standard or require-
     ment  to such facilities  which is  more stringent than the stand-
     ards and requirements applicable to  facilities which  are not
     owned or operated by any such department, agency,  or instru-
     mentality.
   (b) NOTICE.—Each department, agency, and instrumentality of the
 United States shall add to the inventory of Federal agency hazard-

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ous waste facilities required  to be submitted under section 3016 of
the Solid Waste Disposal Act  (in addition to the information re-
quired under section 3016(aX3) of such Act) information on contami-
nation from  each facility owned or operated by  the department,
agency, or instrumentality if such contamination affects contiguous
or adjacent property owned by the department, agency, or instrumen-
tality or by any other person,  including a description of the monitor-
ing data  obtained.
  (c) FEDERAL AGENCY HAZARDOUS WASTE COMPLIANCE DOCKET.—
The Administrator shall establish a special Federal Agency Hazard-
ous Waste Compliance Docket (hereinafter in this section referred to
as the "docket ) which shall contain each of the following:
      (1) All information submitted under section 3016 of the Solid
    Waste Disposal Act and subsection (b) of this section  regarding
    any Federal facility and  notice of each subsequent action taken
    under this Act with respect to the facility.
      (2) Information submitted by each department,  agency, or in-
    strumentality of the United States under section 3005  or 3010 of
    such Act.
      (3) Information  submitted by the  department,  agency,  or in-
    strumentality  under section 103 of this Act.
The docket shall  be available for public inspection  at reasonable
times. Six  months after establishment of the docket and every 6
months thereafter, the Administrator shall publish in the Federal
Register a list of the Federal facilities which have been included in
the docket during the  immediately preceding 6-month period. Such
publication shall  also indicate where in the appropriate regional
office of the  Environmental Protection Agency additional informa-
tion may be obtained with respect to any facility on the docket. The
Administrator shall establish a program to provide information to
the public with respect to facilities which are included in the  docket
under this subsection.
  (d)  ASSESSMENT AND EVALUATION.—Not later than 18 months
after  the enactment of the Superfund Amendments and Reauthor-
ization Act of 1986, the Administrator  shall  take steps  to  assure
that a preliminary assessment  is conducted for each facility  on the
docket. Following such preliminary assessment,  the Administrator
shall, where  appropriate—
      (1) evaluate such facilities in accordance with the criteria es-
    tablished in  accordance with section  105 under the National
    Contingency  Plan for determining  priorities  among releases;
    and
      (2) include  such facilities  on the National Priorities  List
    maintained under such plan if the facility meets such criteria.
Such criteria shall be applied in the same manner as the criteria
are applied to facilities which are owned or operated by  other per-
sons.  Evaluation and listing  under this subsection shall be complet-
ed not later than 30 months after such date of enactment. Upon the
receipt of a petition from the Governor of any State, the Administra-
tor shall make such an evaluation of any facility included  in the
docket.
   (e) REQUIRED ACTION BY DEPARTMENT.—
      (1) RIFS.—Not later than 6 months after the inclusion  of any
    facility on the National  Priorities List, the department, agency,

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or instrumentality which owns or operates such facility shall,
in consultation with the Administrator and appropriate State
authorities, commence  a remedial investigation and feasibility
study for such facility.  In the case of any facility which is listed
on such list before the  date of the enactment of this section, the
department, agency, or instrumentality which owns or operates
such facility shall, in consultation with the Administrator and
appropriate State authorities, commence  such an investigation
and study for such facility  within one year after such date of
enactment.  The Administrator and appropriate  State authori-
ties shall publish a timetable and deadlines for  expeditious
completion of such investigation and study.
  (2)  COMMENCEMENT  OF  REMEDIAL  ACTION;  INTERAGENCY
AGREEMENT.—The Administrator  shall  review  the results of
each  investigation and study conducted as provided  in para-
graph (1). Within  180  days  thereafter, the head of the depart-
ment, agency,  or instrumentality concerned shall enter into an
interagency agreement  with the Administrator for the expedi-
tious  completion by such department, agency, or instrumentality
of all necessary remedial action at such facility.  Substantial
continuous physical onsite remedial action shall be commenced
at each facility not later than 15 months after completion of the
investigation and  study. All such interagency agreements,  in-
cluding review of alternative remedial action plans and selec-
tion of remedial action, shall comply  with the public participa-
tion requirements of section  117.
  (3)  COMPLETION  OF REMEDIAL ACTIONS.—Remedial actions at
facilities subject  to interagency agreements under  this section
shall be completed as expeditiously as practicable. Each agency
shall include  in its annual  budget submissions to the Congress
a review of alternative agency funding which could be used to
provide for the costs of remedial action. The budget submission
shall also include a statement of the hazard posed by the facili-
ty to  human health, welfare, and the environment and identify
the specific consequences of failure to begin and complete reme-
dial action.
  (4)  CONTENTS  OF AGREEMENT.—Each  interagency agreement
under this subsection shall  include, but shall not be limited to,
each  of the following:
      (A) A review of alternative remedial actions and selection
    of a remedial action by  the head of the relevant depart-
    ment, agency,  or instrumentality and the Administrator or,
    if unable to  reach agreement on selection of a  remedial
    action, selection by the Administrator.
      (B) A schedule for the completion of each such remedial
    action.
      (C) Arrangements for long-term  operation  and mainte-
     nance of the facility.
   (5) ANNUAL REPORT.—Each department, agency, or instrumen-
 tality responsible for compliance with this section shall furnish
 an annual report  to the Congress concerning its progress in im-
plementing the requirements of this section. Such reports shall
 include,  but shall not  be limited to, each of the following items:

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                               81

          (A)  A  report  on the progress in  reaching interagency
        agreements under this section.
          (B)  The specific cost  estimates and budgetary proposals
        involved in each interagency agreement.
          (C) A brief summary of the public comments  regarding
        each proposed interagency agreement.
          (D) A description of the instances in which no agreement
        was reached.
          (E) A report on progress in conducting investigations and
        studies under paragraph (1).
          (F) A report on progress in conducting remedial actions.
          (G) A report on progress in conducting remedial action at
        facilities  which  are  not listed on the National Priorities
        List.
    With  respect  to instances in which no agreement was reached
    within the required time period,  the department, agency, or in-
    strumentality filing  the report under this paragraph shall in-
    clude in such  report an explanation of the reasons  why  no
    agreement  was reached.  The annual report required by this
    paragraph shall also contain a detailed description on a State-
    by-State basis of the status of each facility subject to this sec-
    tion, including a description of the hazard presented by each fa-
    cility, plans'and schedules for  initiating and completing  re-
    sponse action, enforcement status (where appropriate), and  an
    explanation of any  postponements or failure to complete  re-
    sponse action. Such reports shall also be submitted to  the affect-
    ed States.
      (6) SETTLEMENTS WITH OTHER PARTIES.—If the Administrator,
    in consultation with  the  head  of the  relevant department,
    agency, or instrumentality of the  United States, determines that
    remedial  investigations  and feasibility  studies  or  remedial
    action will be done properly at the Federal facility by another
    potentially responsible party within the deadlines provided in
    paragraphs (1), (2), and (3) of this subsection, the Administrator
    may enter into an agreement with such party under section 122
    (relating to settlements). Following approval by  the Attorney
    General of any such agreement relating  to a remedial action,
    the agreement shall be entered in the appropriate United States
    district court as a consent decree under section 106 of this Act.
  (f) STATE AND LOCAL PARTICIPATION.—The  Administrator and
each department, agency, or instrumentality responsible for compli-
ance with this section shall afford to relevant State ana  local offi-
cials the opportunity to participate in the planning and selection of
the remedial action, including but not limited to the review of all
applicable data as it becomes  available and the development of
studies, reports, and action plans. In the case of State officials, the
opportunity to participate shall be provided in accordance with sec-
tion 121.
  (a) TRANSFER OF AUTHORITIES.—Except for authorities  which are
delegated by the Administrator to an officer or employee  of the En-
vironmental Protection Agency, no authority vested in the Adminis-
trator under this section may  be  transferred, by executive order of
the President  or otherwise, to any other officer  or employee of the
United States  or to any other person.

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 (h) PROPERTY TRANSFERRED BY FEDERAL AGENCIES.—
     (1) NOTICE.—After the last day of the 6-month period begin-
   ning on the effective date of regulations under paragraph (2) of
   this subsection, whenever any department, agency, or instrumen-
   tality of the United States enters into any contract for the sale
   or other transfer of real property which is owned by the United
   States and on which any hazardous substance was stored for
   one year or more, known  to have been released, or disposed of,
   the head of such department, agency, or instrumentality shall
   include in such contract notice of the type and quantity of such
   hazardous  substance and  notice  of the time at which such stor-
   age, release, or disposal took place,  to the extent such informa-
   tion is available on the  basis of a complete search of agency
   files.
     (2) FORM OF NOTICE; REGULATIONS.—Notice under this subsec-
   tion shall be provided  in such form and manner as may be pro-
   vided  in  regulations promulgated by  the  Administrator.  As
   promptly as practicable after the enactment of this subsection
   but not later than 18 months after the date of such enactment,
   and after consultation  with the Administrator of the General
   Services  Administration,  the Administrator shall promulgate
   regulations regarding the notice required to  be provided under
   this subsection.
     (3) CONTENTS OF CERTAIN DEEDS.—After the last day of the 6-
   month period beginning  on the effective date of regulations
   under paragraph (2) of this subsection, in the case of any real
   property owned  by  the  United States on which any hazardous
   substance was stored for one year or more, known to have been
   released, or disposed of, each deed entered into for the transfer
   of such property by the United States to any other person or
   entity shall contain—
          (A) to the extent such information is available on  the
       basis of a complete search of agency files—
              (i) a notice of the type and quantity of such  hazard-
           ous substances,
              (ii) notice of the time at which such storage, release,
           or disposal took place, and
              (Hi) a description of the  remedial action taken, if
           any, and
          (B) a covenant warranting that—
              (i) all remedial action necessary to protect human
            health  and the environment with respect to any such
           substance  remaining on the property has been  taken
            before the date of such transfer, and
              (ii) any additional remedial action found to be neces-
            sary after  the date of such transfer  shall be conducted
            by the United States.
    The requirements of subparagraph (B) shall not apply in  any
    case  in  which  the person or entity to whom  the property is
    transferred is a potentially responsible party  with  respect to
    such  real property.
  (i) OBLIGATIONS UNDER SOLID WASTE DISPOSAL ACT.—Nothing in
this section shall affect or impair the obligation  of any department,
agency, or instrumentality of the United States to comply with any

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requirement of the Solid Waste Disposal Act (including corrective
action requirements).
  (j) NATIONAL SECURITY.—
      (1) SITE SPECIFIC PRESIDENTIAL ORDERS.—The President may
    issue such orders regarding response actions at any specified
    site or facility of the Department of Energy or the Department
    of Defense as  may be necessary to protect the national security
    interests of the  United States at that site  or facility.  Such
    orders  may include, where necessary to protect such interests, an
    exemption from any requirement contained in this title or under
    title III of  the  Superfund Amendments and Reauthorization
    Act of 1986 with respect to the site or facility concerned. The
    President shall notify the Congress within 30 days of the  issu-
    ance of an order under this paragraph providing for any  such
    exemption. Such notification shall include a statement of the
    reasons for the granting of the exemption. An exemption under
    this paragraph shall be for a specified period which may not
    exceed one year.  Additional exemptions may be  granted,  each
    upon the President's  issuance of a new order under  this para-
    graph  for the site or facility concerned. Each such additional
    exemption shall be for a specified period which may  not exceed
    one year. It is the intention of the Congress that whenever an
    exemption is issued under this paragraph  the response action
    shall proceed as expeditiously as practicable.  The Congress
    shall be notified periodically of the progress of any response
    action  with respect to which  an  exemption has  been  issued
    under  this paragraph.  No exemption snail be granted under
    this paragraph due to  lack of appropriation unless  the Presi-
    dent shall have specifically requested such appropriation  as a
    part of the budgetary process and the Congress shall have failed
    to make available such requested appropriation.
      (2)  CLASSIFIED INFORMATION.—Notwithstanding any  other
    provision of law, all requirements of  the Atomic Energy Act
    and all Executive orders concerning the handling of restricted
    data and national security information, including  "need to
    know " requirements, shall be applicable to any grant of access
    to classified information under the provisions  of this Act or
    under  title III of the Superfund Amendments and Reauthoriza-
    tion Act of 1986.
SEC. 121. CLEANUP STANDARDS.
  (a) SELECTION OF  REMEDIAL ACTION.—The President shall select
appropriate remedial actions determined  to be  necessary to be car-
ried out under section 104 or secured under section 106 which are in
accordance with this section and, to the extent practicable, the na-
tional contingency plan, and  which  provide for cost-effective re-
sponse. In  evaluating the cost effectiveness of proposed alternative
remedial actions,  the President shall  take into account the  total
short- and long-term  costs of such actions, including the costs of op-
eration and maintenance for the entire period during which  such
activities will be required.
  (b) GENERAL RULES.—(1) Remedial actions in which  treatment
which permanently and significantly reduces the volume,  toxicity or
mobility of the hazardous substances, pollutants, and contaminants

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is a principal element, are to be preferred over remedial actions not
involving such treatment. The offsite transport and disposal of haz-
ardous substances  or contaminated  materials  without such  treat-
ment should be the least favored alternative remedial action where
practicable  treatment  technologies are  available.  The  President
shall conduct an assessment of permanent solutions and alternative
treatment  technologies  or resource recovery  technologies  that,  in
whole or in part,  will result in a permanent  and significant de-
crease in the toxicity,  mobility,  or volume of the hazardous sub-
stance, pollutant, or  contaminant.  In making such assessment,  the
President shall specifically  address  the long-term effectiveness of
various alternatives.  In assessing alternative remedial actions,  the
President shall, at a minimum, take into account:
       (A) the long-term uncertainties associated with land disposal;
       (B) the goals, objectives, and requirements of the Solid Waste
    Disposal Act;
       (C) the persistence, toxicity, mobility,  and propensity to bioac-
    cumulate of such hazardous substances and their constituents;
       (D) short-  and long-term potential for  adverse health  effects
    from human exposure;
       (E) long-term maintenance costs;
       (F) the potential  for future remedial  action costs if the alter-
    native remedial action in question were to fail; and
       (G) the potential threat to human health and  the environ-
    ment associated  with  excavation, transportation, and redispo-
    sal, or containment.
The President shall  select  a remedial action that  is protective of
human health and the environment,  that is cost effective, and that
utilizes permanent  solutions and alternative  treatment technologies
or resource recovery technologies to the maximum extent practicable.
If the President selects  a remedial action not  appropriate for a pref-
erence under this subsection, the President shall publish an expla-
nation as to why a remedial action  involving such reductions was
not selected.
   (2) The President may select an alternative remedial action meet-
ing the objectives of  this subsection whether or not such action  has
been  achieved in practice at any other facility or site that has simi-
lar characteristics. In making such  a selection, the President may
take  into account the degree of support for such remedial action by
parties interested in such site.
   (c) REVIEW.—If  the President selects a remedial action that  re-
sults in any hazardous substances, pollutants,  or  contaminants re-
maining at the site, the President shall review such remedial action
no less often than  each 5 years after the initiation of such remedial
action to assure that human health  and the  environment are being
protected by the remedial action being implemented. In addition, if
upon such review it  is  the judgment of the President that action is
appropriate at such  site in accordance with section 104  or 106, the
President  shall  take or require such action.  The President shall
report to the Congress  a list of facilities for which such  review is
required, the results  of all such reviews, and  any actions taken as a
result of such reviews.
   (d) DEGREE OF  CLEANUP.—(1)  Remedial actions selected  under
 this  section or  otherwise required or agreed  to  by the President

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                               85

under this Act shall attain a degree of cleanup of hazardous sub-
stances, pollutants, and contaminants released into the environment
and of control of further release at a minimum which assures pro-
tection of human health and the environment. Such remedial ac-
tions shall be relevant and appropriate under the circumstances pre-
sented by the release or threatened release of such substance, pollut-
ant, or contaminant.
  (2XA) With respect to any hazardous substance, pollutant or con-
taminant that will remain  onsite, if—
      (i) any standard, requirement, criteria, or limitation  under
    any Federal environmental  law, including,  but not limited to,
    the Toxic Substances Control Act, the Safe Drinking Water Act,
    the Clean Air Act, the Clean Water Act, the Marine Protection,
    Research and Sanctuaries Act, or the Solid Waste Disposal Act;
    or
      (ii) any promulgated standard, requirement, criteria, or limi-
    tation  under a State environmental or facility siting law that is
    more stringent  than any Federal standard,  requirement,  crite-
    ria, or limitation,  including each such State standard, require-
    ment, criteria, or limitation contained in a program  approved,
    authorized or delegated by  the Administrator under a statute
    cited in subparagraph (A), and that has been identified to the
    President by the State in a timely manner,
is legally applicable to the hazardous substance or pollutant or con-
taminant concerned or is  relevant and appropriate under the cir-
cumstances of the release or threatened release of such  hazardous
substance or pollutant or contaminant, the remedial action selected
under section 104 or secured under section 106 shall require,  at the
completion of the remedial action, a level or standard of control for
such hazardous substance or pollutant or contaminant  which at
least attains such  legally applicable or  relevant and appropriate
standard, requirement, criteria,  or limitation. Such remedial action
shall require a level or standard of control which at least attains
Maximum Contaminant Level  Goals established  under the  Safe
Drinking Water Act and water quality criteria established under
section 304 or 303 of the Clean Water Act, where such goals or crite-
ria are relevant and appropriate under the circumstances of the re-
lease or threatened release.
  (BXi) In determining whether or  not any water quality criteria
under the  Clean Water Act is relevant and appropriate  under the
circumstances of the  release  or threatened  release,  the  President
shall consider the designated  or potential use of the  surface or
groundwater,  the environmental media affected, the purposes for
which such  criteria were developed,  and  the  latest information
available.
  (ii) For the purposes of this section, a process for establishing al-
ternate concentration limits to  those otherwise  applicable for haz-
ardous constituents in groundwater  under subparagraph (A) may
not be used to establish applicable standards under this paragraph
if the process assumes a point  of human exposure beyond the bound-
ary of the facility, as defined at the conclusion of the remedial in-
vestigation and feasibility study, except where—
      (I) there are  known and projected points of entry of such
    groundwater into surface water; and

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                               86

      (II) on the basis  of measurements or projections,  there is or
    will be no statistically significant increase of such constituents
    from such groundwater in such surface water at the point of
    entry or at any point where there is reason to believe accumula-
    tion of constituents  may occur downstream; and
      (III) the remedial action includes enforceable measures that
    will preclude human exposure to the contaminated groundwater
    at any point between the facility boundary and all known and
    projected points of entry of such groundwater into surface water
then the assumed point of human exposure may be at such known
and projected points of entry.
  (CXi) Clause (ii) of this subparagraph shall be applicable only in
cases  where,  due to the President's selection, in compliance with
subsection (bXV, of a proposed remedial action which  does not per-
manently and significantly reduce the volume, toxicity, or mobility
of hazardous substances, pollutants, or contaminants,  the proposed
disposition of waste generated by or associated with  the remedial
action selected by the President is land disposal in a State referred
to in clause (ii).
  (ii)  Except  as provided in clauses (Hi) and (iv), a State standard,
requirement,  criteria,  or limitation (including  any  State  siting
standard or requirement) which could effectively result in the state-
wide prohibition of land disposal of hazardous substances, pollut-
ants, or contaminants shall not apply.
  (Hi) Any State standard,  requirement,  criteria, or limitation  re-
ferred to in clause (ii) shall apply where each of the following condi-
tions  is met:
       (I) The State standard,  requirement, criteria, or limitation is
    of general applicability and was adopted by formal means.
       (II) The State standard, requirement, criteria,  or  limitation
    was adopted on the basis of hydrologic, geologic,  or  other rele-
    vant considerations and was not adopted for the purpose of pre-
    cluding onsite remedial actions or other land disposal for rea-
    sons unrelated to protection of human health and the environ-
    ment.
       (Ill) The State arranges for, and assures payment of the incre-
    mental costs of utilizing, a facility for  disposition of the haz-
    ardous substances, pollutants, or contaminants concerned.
   (iv) Where the remedial action selected by the President does not
conform to a State standard and  the State has initiated  a  law suit
against the Environmental Protection Agency prior to May 1, 1986,
to seek to have  the remedial  action conform to such standard,  the
President shall  conform the remedial action to the State standard.
The State shall  assure  the availability of an offsite facility for such
remedial action.
   (3)  In the  case of any removal or remedial action  involving  the
transfer of any hazardous  substance or  pollutant or contaminant
offsite, such  hazardous substance or pollutant or contaminant shall
only  be transferred to  a facility  which is operating in  compliance
with  section, 3004 and 3005  of the  Solid  Waste Disposal Act  (or,
where applicable, in compliance with the Toxic Substances Control
Act or other applicable Federal  law) and all applicable State re-
quirements.  Such substance or pollutant or contaminant  may be

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                               87

transferred to a land disposal facility only if the President deter-
mines that both of the following requirements are met:
      (A) The unit to which  trie hazardous substance or pollutant
    or contaminant is transferred is not releasing any  hazardous
    waste, or constituent thereof, into the groundwater  or surface
    water or soil.
      (B) All such releases from other units at the facility are being
    controlled by  a corrective action program approved by the Ad-
    ministrator under subtitle C of the Solid Waste  Disposal  Act.
The President shall notify the owner or operator of such facility of
determinations under this paragraph.
  (4) The President may select a remedial action meeting the re-
quirements of paragraph (1) that does not attain  a level or standard
of control at least equivalent to a legally applicable or relevant and
appropriate standard,  requirement,  criteria,  or limitation as re-
quired by paragraph (2) (including subparagraph (B) thereof), if the
President finds that—
      (A) the remedial action selected is only part of a total remedi-
    al action that will attain such level or standard  of control
    when completed;
      (B) compliance  with such requirement at that facility  will
    result in greater risk to human health and  the environment
    than alternative options;
      (C) compliance  with such requirements is  technically imprac-
    ticable from an engineering perspective;
      (D) the remedial action selected will attain a standard of per-
    formance that is equivalent to  that required under the other-
    wise  applicable standard, requirement, criteria, or  limitation,
    through  use of another method or approach;
      (E) with respect to a State standard, requirement,  criteria, or
    limitation, the State  has not consistently applied (or demon-
    strated the intention  to  consistently apply) the  standard, re-
    quirement, criteria, or limitation  in similar circumstances at
    other remedial actions within the State; or
      (F) in  the case of a remedial  action to be undertaken solely
    under section  104 using the Fund, selection of a remedial action
    that attains such level or standard of control will not provide a
    balance  between  the need for protection of public health  and
    welfare  and  the environment at  the  facility under consider-
    ation, and the availability of amounts  from  the Fund to re-
    spond to other sites which present or  may present a threat to
    public health or welfare or the environment, taking into consid-
    eration the relative immediacy of such threats.
The President shall publish such findings, together with an expla-
nation and appropriate documentation.
   (e) PERMITS AND ENFORCEMENT.—(1) No Federal, State,  or local
permit shall be required for the portion of any removal or remedial
action conducted  entirely onsite, where such remedial action is se-
lected and carried out in compliance with this section.
   (2) A State may enforce any Federal or State standard,  require-
ment,  criteria, or limitation to which the remedial  action is re-
quired to conform under this Act in  the United States district court
for the district in which the facility is located.  Any consent decree
shall require the parties to attempt expeditiously to resolve disagree-

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merits concerning implementation of the remedial action informally
with the appropriate Federal and State agencies.  Where the parties
agree, the  consent  decree may provide  for administrative enforce-
ment. Each consent decree  shall also  contain stipulated penalties
for violations of the decree  in an amount not to exceed $25,000 per
day, which may be enforced by either  the President or the State.
Such stipulated penalties shall not be construed to impair or affect
the authority of the court  to order compliance  with  the specific
terms of any such decree.
  (f) STATE INVOLVEMENT.—(V The President shall promulgate reg-
ulations providing  for substantial and  meaningful involvement  by
each State in initiation, development, and selection of remedial ac-
tions  to be undertaken in that State.  The regulations, at a mini-
mum, shall include each of the following:
      (A) State  involvement in decisions whether to perform a pre-
    liminary assessment and site inspection.
      (B) Allocation of responsibility for hazard  ranking system
    scoring.
      (C) State concurrence in deleting sites from the National Pri-
    orities List.
      (D) State  participation in  the long-term planning process for
    all  remedial -sites within the State.
      (E) A reasonable opportunity for States  to  review and com-
    ment on each of the following:
           (i) The remedial investigation and feasibility study and
        all data and  technical documents leading to its issuance.
           (ii) The planned remedial action identified in the remedi-
        al investigation and feasibility study.
           (Hi) The engineering design following selection of the
        final remedial action.
           (iv) Other technical data and  reports relating to  imple-
        mentation  of the remedy.
           (v) Any proposed  finding or decision by the President to
        exercise the authority of subsection (dX4).
      (F) Notice to the State of negotiations with potentially respon-
    sible parties regarding  the scope of any response action at a fa-
    cility in the State and an opportunity to participate in such ne-
    gotiations and, subject to paragraph (2), be a party to any settle-
    ment.
      (G) Notice to the State and an opportunity to comment on the
    President's  proposed plan for remedial action  as well as on al-
    ternative plans under  consideration.  The President's proposed
    decision regarding the  selection of remedial action shall be ac-
    companied  by a  response  to the  comments  submitted by the
    State, including an explanation regarding any decision under
    subsection (dX4) on compliance with  promulgated State stand-
    ards.  A copy  of such  response  shall also be provided  to the
    State.
      (H) Prompt notice and explanation  of each proposed action to
     the State in which the facility is located.
 Prior to the promulgation  of such  regulations, the President shall
 provide notice to the State of negotiations with potentially responsi-
 ble parties regarding the scope of any response action at a facility in

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the State, and such State may participate in such negotiations and,
subject to paragraph (2), any settlements.
  (2XA)  This paragraph  shall  apply to  remedial  actions  secured
under section 106. At least 30 days prior to the entering of any con-
sent decree, if the President proposes to select a remedial action that
does  not attain  a  legally applicable or  relevant and appropriate
standard, requirement, criteria, or limitation,  under the authority of
subsection (dX4),  the President shall provide an opportunity for the
State to  concur or not concur in such selection.  If the State concurs,
the State may become a signatory to the consent decree.
  (B) If  the State does not concur in such selection,  and the State
desires to have  the remedial  action  conform to such standard, re-
quirement, criteria, or  limitation,  the State shall intervene in  the
action under section 106 before entry of the consent decree, to seek to
have the remedial action so conform. Such intervention shall be a
matter of right.  The  remedial action shall conform to such stand-
ard, requirement, criteria, or limitation if the State establishes, on
the administrative record, that the finding of the President was not
supported by substantial  evidence. If the  court determines that the
remedial action shall conform to such standard, requirement, crite-
ria, or limitation, the remedial action shall be so modified and the
State may become a signatory to the decree. If the court determines
that  the remedial action need not conform  to such standard, re-
quirement, criteria, or limitation, and the State pays or assures the
payment of the additional costs attributable to meeting such stand-
ard, requirement, criteria, or limitation,  the remedial action shall
be so modified and the State shall become a signatory to the decree.
  (C) The President may conclude settlement negotiations with po-
tentially responsible parties without State concurrence.
  (3XA)  This paragraph shall apply to remedial actions at facilities
owned or operated by a  department,  agency, or instrumentality of
the  United States. At least 30 days prior to  the publication of the
President's final remedial action plan,  if the President proposes to
select a  remedial action that does not attain  a  legally applicable or
relevant and appropriate standard, requirement, criteria, or limita-
tion,  under the  authority of subsection (dX4),  the President shall
provide  an opportunity for the State to concur or not concur in such
selection. If the  State concurs, or does  not act within 30 days, the
remedial action may proceed.
  (B) If the State does not concur in such selection as provided in
subparagraph (A), and desires to have the remedial action conform
to such standard, requirement, criteria,  or limitation, the State may
maintain an action as follows:
      (i) If the President has notified the State of selection of such
     a remedial action,  the State may bring an action within 30 days
     of such notification for the sole purpose of determining whether
     the  finding of the President is  supported by  substantial  evi-
     dence. Such action shall be  brought in  the United States  dis-
     trict court for the district in which the facility is located.
      (ii) If the State establishes, on the administrative record, that
     the  President's finding is not supported by substantial evidence,
     the  remedial action shall be modified to  conform to such stand-
     ard, requirement, criteria, or limitation.

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                               90

      (Hi) If the State fails to establish that the President's finding
    was not supported by substantial evidence and if the State pays,
    within 60 days of judgment, the additional costs attributable to
    meeting such standard, requirement, criteria, or limitation, the
    remedial action shall be selected  to  meet such standard, re-
    quirement, criteria,  or limitation. If the State  fails  to pay
    within 60 days, the remedial action selected by the President
    shall proceed through completion.
  (C) Nothing in  this section precludes, and the court shall not
enjoin, the Federal agency from taking any remedial action unrelat-
ed to or not inconsistent with such standard, requirement, criteria,
or limitation.
SEC. 122. SETTLEMENTS.
  (a) AUTHORITY To ENTER INTO AGREEMENTS.—The President, in
his discretion, may enter into an agreement with any person (includ-
ing the owner or operator of the facility from which a release or sub-
stantial threat of release emanates, or any other potentially  respon-
sible person), to perform any response action (including any action
described in  section 104(b)) if the  President determines that such
action will be done properly by such person. Whenever practicable
and in the public interest, as determined by the President, the Presi-
dent shall act to facilitate agreements under this section that are in
the public interest and  consistent  with the National  Contingency
Plan  in order to expedite effective remedial actions and  minimize
litigation. If the President decides not to use the procedures  in this
section, the President shall notify in writing potentially responsible
parties at the facility  of such decision  and the reasons why use of
the procedures is inappropriate. A decision of the President to use or
not to use the procedures in this section is not subject to judicial
review.
  (b) AGREEMENTS  WITH POTENTIALLY RESPONSIBLE PARTIES.—
      (1) MIXED  FUNDING.—An agreement under this  section may
    provide that the  President will reimburse  the parties  to the
    agreement from the  Fund,  with interest, for certain costs of ac-
    tions under the agreement that the parties have agreed to per-
    form but which the President has agreed to finance. In any case
    in which the President provides such reimbursement, the Presi-
    dent shall make all reasonable efforts to recover the amount of
    such reimbursement under section  107 or under other relevant
    authorities.
      (2) REVIEW ABILITY.—The President's decisions regarding the
    availability of fund financing under  this subsection  shall not
    be subject to judicial review under subsection (d).
      (3) RETENTION OF FUNDS.—If,  as part of any agreement, the
    President will  be carrying out any action and the parties will be
    paying amounts to the President,  the President may, notwith-
    standing any  other provision  of law,  retain and  use such
    amounts for purposes of carrying out the agreement.
      (4) FUTURE OBLIGATION OF FUND.—In the case of a completed
    remedial action pursuant  to an agreement described in para-
    graph (1), the Fund shall be subject to an obligation for subse-
    quent  remedial actions at the same facility  but only  to the
    extent that such subsequent actions are necessary  by reason of

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                            91

  the failure  of the  original remedial  action.  Such  obligation
  shall be in a proportion equal to, but not exceeding, the propor-
  tion contributed by the Fund for the original remedial action.
  The Fund's obligation for such future remedial action may be
  met through Fund expenditures  or through payment, following
  settlement or enforcement action, by parties who were not signa-
  tories to the original agreement.
(c) EFFECT OF AGREEMENT.—
    (1) LIABILITY.—Whenever the  President has entered into an
  agreement under  this  section, the liability to the  United  States
  under this Act of each party to the agreement, including any
  future liability to the  United States,  arising from the release or
  threatened release that is the subject of the agreement shall be
  limited as provided in the agreement  pursuant to a covenant
  not to sue in accordance with subsection (f). A covenant  not to
  sue may provide that  future liability to the United States of a
  settling potentially responsible party under  the agreement may
  be limited to  the same proportion as that established  in the
  original settlement agreement.  Nothing in this section  shall
  limit or otherwise affect the authority of any court to review in
  the consent decree process under  subsection (d) any covenant not
  to sue contained  in an agreement under this section. In deter-
  mining the extent to which the  liability of parties to an agree-
  ment shall  be limited pursuant to a covenant not to sue, the
  President shall be guided by the principle that a more complete
  covenant not  to sue shall  be provided, for a  more permanent
  remedy undertaken by such parties.
    (2) ACTIONS AGAINST OTHER PERSONS.—If an agreement has
  been entered into  under this section, the President may take any
  action under section 106 against any person who is not a party
  to the agreement, once the period for submitting a proposal
  under subsection  (eX2)(B) has expired. Nothing in this section
  shall be construed to affect either of the following:
        (A) The liability of any person under section 106  or 107
      with respect to any costs or  damages which are not includ-
      ed in  the agreement.
        (B) The authority of the President to maintain an action
      under this Act against any person  who is not a party to the
      agreement.
(d) ENFORCEMENT.—
    (1) CLEANUP AGREEMENTS.—
        (A)  CONSENT DECREE.—Whenever  the  President  enters
      into an agreement under this section with any potentially
      responsible party  with  respect to remedial action under sec-
      tion 106, following approval of the agreement by the Attor-
      ney General,  except as otherwise provided in the case of cer-
      tain administrative settlements referred to in subsection (g),
      the agreement shall be entered in the  appropriate  United
      States district court as a consent decree. The President need
      not make any finding regarding an imminent and substan-
      tial endangerment to the public health or the environment
      in connection with any such agreement or consent decree.
        (B) EFFECT.—The entry of any consent decree under this
      subsection shall not be construed to be an acknowledgment
  65-705 0-87-4

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                            92

      by the parties that the release or threatened release  con-
      cerned constitutes an  imminent and substantial endanger-
      ment  to the public health  or welfare or the environment.
      Except as otherwise provided in the Federal Rules of Evi-
      dence,  the participation by any party in the process under
      this section shall not  be considered an admission of liabil-
      ity for any purpose, and the fact of such participation shall
      not be admissible in any judicial or administrative proceed-
      ing, including a subsequent proceeding under this section.
        (C)  STRUCTURE.—The President may fashion a consent
      decree so that the entering of such decree and compliance
      with such decree or with any determination or agreement
      made pursuant to this section shall not be considered an
      admission of liability for any purpose.
    (2) PUBLIC PARTICIPATION.—
        (A)  FILING OF  PROPOSED JUDGMENT.—At least 30 days
      before a final judgment is entered under paragraph (1), the
      proposed judgment shall be filed with the court.
        (B)  OPPORTUNITY FOR COMMENT.—The Attorney General
      shall provide an opportunity to persons who are not named
      as parties to the action to  comment on the  proposed judg-
      ment  before  its entry by the court as a final judgment. The
      Attorney General shall consider, and file  with the court,
      any written  comments, views, or allegations relating to the
      proposed judgment.  The Attorney General may withdraw or
      withhold its consent to the proposed judgment if the com-
      ments, views, and allegations concerning the judgment dis-
      close facts or  considerations which  indicate that the pro-
      posed judgment  is inappropriate, improper,  or inadequate.
    (3) 104(b) AGREEMENTS.—Whenever the President enters into
  an agreement under this section with any potentially  responsi-
  ble party with respect to action under section 104(b), the Presi-
  dent shall issue  an order or enter into a decree setting forth the
  obligations of such party. The  United States district court for
  the district in which the release or  threatened release  occurs
  may enforce such order or decree.
(e) SPECIAL NOTICE PROCEDURES.—
    (1) NOTICE.—Whenever the President determines that a period
  of negotiation under this  subsection would facilitate an agree-
  ment with potentially responsible parties for taking response
  action (including  any action described  in section 104(b)) and
  would expedite remedial action,  the President shall so notify all
  such parties and shall provide  them with information concern-
  ing each of the following:
        (A) The names and addresses  of potentially responsible
      parties (including owners and operators and other persons
      referred to in section 107(a)), to the extent such information
      is available.
        (B)  To the extent  such  information is  available,  the
      volume and nature of substances contributed by each poten-
      tially responsible party identified at the facility.
        (C) A ranking by volume of the substances at the facility,
      to the extent such information is available.

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The President  shall make  the  information referred to in this
paragraph available in advance of notice under this paragraph
upon the request of a potentially  responsible party in accord-
ance with procedures provided by the President, The provisions
of subsection (e) of section 104 regarding protection of confiden-
tial information apply to  information provided under this para-
graph. Disclosure of information  generated by the President
under this section to persons other than  the Congress, or any
duly authorized Committee  thereof, is subject to other privileges
or protections provided by  law, including (but not limited to)
those applicable to attorney work product. Nothing contained in
this paragraph or in other  provisions of this Act shall be con-
strued, interpreted, or applied to diminish the required disclo-
sure of information under other provisions of this or other Fed-
eral or State laws.
  (2) NEGOTIATION.—
      (A) MORATORIUM.—Except as provided in this subsection,
    the  President  may  not  commence action under section
    104(a) or take any action under section 108 for 120  days
    after providing notice and information under  this subsec-
    tion with respect to such  action.  Except as provided in this
    subsection, the President  may not commence a remedial in-
    vestigation and feasibility study  under section 104(b) for 90
    days after providing notice and information under this sub-
    section with respect to such action. The President may com-
    mence any additional studies  or investigations authorized
    under section 104(b),  including remedial design, during the
    negotiation period.
      (B) PROPOSALS.—Persons receiving  notice and  informa-
    tion under paragraph (1) of this subsection with respect to
    action under section  106  shall have 60 days from  the date
    of receipt of such notice to make  a proposal to the President
    for undertaking or financing the action under section 106.
    Persons  receiving notice and information under paragraph
    (1) of this subsection with respect to action  under section
    104(p) shall have  60 days from the date of receipt of such
    notice to make a proposal to the President for undertaking
    or financing the action under section 104(b).
      (C) ADDITIONAL PARTIES.—If an additional potentially re-
    sponsible party  is identified during the negotiation period
    or after an agreement has been entered into under this sub-
    section concerning a release or threatened release, the Presi-
    dent may bring the additional party into the negotiation or
    enter into a separate  agreement with such party.
   (3) PRELIMINARY ALLOCATION OF RESPONSIBILITY.—
       (A) IN GENERAL.—The  President shall develop guidelines
    for preparing nonbinding preliminary allocations of respon-
    sibility.  In developing these guidelines the President may
     include such factors as  the President considers  relevant,
     such as: volume, toxicity,  mobility,  strength  of  evidence,
     ability  to pay, litigative  risks, public interest  consider-
     ations, precedential value,  and inequities and aggravating
     factors.  When it would expedite settlements under this sec-
     tion and remedial action, the President may, after comple-

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    tion of the remedial investigation and feasibility study, pro-
    vide  a nonbinding preliminary allocation of responsibility
    which allocates percentages of the total cost of response
    among potentially responsible parties at the facility.
      (B) COLLECTION OF INFORMATION.—To collect information
    necessary  or  appropriate  for performing the  allocation
    under subparagraph (A) or for otherwise implementing this
    section,  the President may by subpoena require the attend-
    ance and testimony of witnesses  and the production of re-
    ports, papers,  documents, answers  to questions,  and other
    information that the President deems necessary.  Witnesses
    shall be paid the same fees and mileage that are paid wit-
    nesses in the courts of the United States. In  the event of
    contumacy or  failure or refusal of any person to obey any
    such subpoena, any  district court of the United States in
    which venue is proper shall have jurisdiction  to order any
    such person to comply with such subpoena. Any failure to
    obey such an order of the court is punishable by the court
    as a  contempt  thereof.
      (C) EFFECT.—The  nonbinding  preliminary allocation of
    responsibility  shall not  be  admissible  as evidence  in any
    proceeding, and no court shall have jurisdiction to review
    the  nonbinding preliminary allocation  of responsibility.
    The  nonbinding preliminary allocation  of responsibility
    shall not constitute an apportionment or other statement on
    the divisibility of harm  or causation.
      (D) COSTS.—The costs incurred by  the President  in pro-
    ducing the nonbinding preliminary allocation of responsi-
    bility shall be reimbursed by the potentially responsible
    parties whose  offer is accepted by the President.  Where  an
    offer under this section is not accepted, such costs shall be
    considered costs of response.
      (E) DECISION TO REJECT OFFER.—Where the President, in
    his discretion, has provided a nonbinding preliminary allo-
    cation of responsibility  and the potentially responsible par-
    ties have made a substantial offer providing for response to
    the President  which he rejects, the reasons for the rejection
    shall be provided in a written explanation. The President's
    decision to reject such an offer snail not  be subject to judi-
    cial  review.
  (4) FAILURE TO PROPOSE.—If the President  determines that a
good faith proposal for undertaking  or financing action under
section 106 has not oeen submitted within 60 days of the provi-
sion of notice pursuant to  this subsection,  the  President may
thereafter commence action under section  104(a) or take  an
action against any person under section 106 of this Act. If the
President determines that a good faith proposal for undertaking
or financing action under section 104(b) has not been submitted
within 60 days after the provision of notice pursuant  to this
subsection, the President may thereafter commence action under
section 104(b).
  (5)  SIGNIFICANT  THREATS.—Nothing  in this subsection shall
limit the President's authority to undertake response  or enforce-
ment action regarding a significant  threat to public health or

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                             95

  the environment within the negotiation  period established by
  this subsection.
    (6) INCONSISTENT RESPONSE ACTION.—When either the Presi-
  dent, or a potentially responsible party pursuant to an adminis-
  trative order or consent decree under this Act, has initiated a
  remedial investigation and feasibility study for a particular fa-
  cility under this Act, no potentially  responsible party may un-
  dertake any remedial action at the facility unless such remedial
  action has been authorized by the President.
(f) COVENANT Nor To SUE.—
    (1) DISCRETIONARY COVENANTS.—The President  may, in his
  discretion, provide any person with a covenant not to sue con-
  cerning any liability to the  United States under this Act,  in-
  cluding future liability, resulting from a release or threatened
  release  of a  hazardous substance addressed by a  remedial
  action, whether that action is onsite or offsite, if each of the fol-
  lowing conditions is met:
        (A) The covenant not to sue is in the public interest.
        (B) The covenant not to sue would  expedite response
      action consistent  with   the  National  Contingency  Plan
      under section 105 of this Act.
        (C) The person is in full compliance with a consent decree
      under section 106 (including a consent decree entered into
      in accordance with  this  section) for response to the release
      or threatened release concerned.
        (D) The response action has been approved by the Presi-
      dent.
    (2)  SPECIAL COVENANTS NOT TO SUE.—In  the  case  of any
  person to whom the President is authorized under paragraph (1)
  of this subsection to provide a covenant not to sue, for the por-
  tion of remedial action—
        (A) which involves the  transport and  secure disposition
      offsite of hazardous substances in a facility meeting the re-
      quirements  of sections 3004 (c), (d), (e), (ft (g), (m), (o),  (p),
      (u), and (v) and 3005(c) of the Solid Waste Disposal Act,
      where the President has  rejected a proposed remedial action
      that is consistent with the National  Contingency Plan that
      does not include such offsite disposition and has thereafter
      required offsite disposition; or
        (B) which involves the treatment of hazardous substances
      so as to destroy, eliminate, or permanently immobilize  the
      hazardous constituents of such substances, such that, in  the
      judgment of the President, the substances no longer present
      any current  or currently foreseeable  future significant risk
      to public health, welfare or the  environment, no byproduct
      of the treatment or destruction process presents any signifi-
      cant hazard to public health, welfare or the environment,
      and  all  byproducts are  themselves  treated, destroyed,  or
      contained in a manner which assures that such byproducts
      do not present  any current or currently foreseeable future
      significant  risk  to  public health,  welfare or the environ-
       ment,
   the President shall provide such person with a covenant not to
   sue with respect to future liability to  the United States under

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this Act for a future release or threatened release of hazardous
substances from such facility, and a person provided such cov-
enant not to sue shall not be liable to the  United States under
section  106 or 107 with respect to such release or threatened re-
lease at a future time.
  (3) REQUIREMENT THAT REMEDIAL ACTION BE COMPLETED.—A
covenant  not to sue concerning  future liability to the United
States shall not take effect until the President certifies that re-
medial  action  has been completed  in accordance  with the re-
quirements of this Act at the facility that is the subject of such
covenant.
  (4) FACTORS.—In assessing the appropriateness of a covenant
not to sue under paragraph (1) and any condition to be included
in a covenant not to sue under paragraph  (1) or (2),  the Presi-
dent shall consider  whether the covenant or condition is in the
public interest on the basis of such factors as the following:
      (A)  The effectiveness and  reliability of the remedy,  in
    light of the other alternative remedies considered for the fa-
    cility concerned.
      (B) The nature of the risks remaining at the facility.
      (C) The  extent to which performance  standards are in-
    cluded in the order or decree.
      (D) The extent to which the response  action provides a
    complete remedy for the facility, including a  reduction  in
    the hazardous nature of the substances  at the facility.
      (E) The extent to which the technology used in the re-
    sponse action is demonstrated to be effective.
      (F) Whether  the Fund or other sources of funding would
    be  available  for any additional remedial actions  that
    might eventually be necessary at the facility.
      (G)  Whether the remedial action will  be  carried out,  in
    whole or  in significant part,  by the responsible parties
    themselves.
  (5)  SATISFACTORY PERFORMANCE.—Any covenant not to sue
under this subsection shall be subject to  the satisfactory per-
formance by such party of its obligations under the agreement
concerned.
  (6) ADDITIONAL CONDITION FOR FUTURE  LIABILITY.—(A) Except
for the  portion of the remedial action which is subject to a cov-
enant not to sue under paragraph (2) or under subsection (g) (re-
lating to de minimis settlements), a covenant not to sue a person
concerning future liability to the United States shall  include an
exception to  the covenant that allows the President to sue such
person  concerning future liability resulting from the release  or
threatened release that is the subject of  the covenant where
such  liability arises out of conditions which are  unknown  at
the time the President certifies under paragraph (3)  that  reme-
dial action has been completed at the facility  concerned.
  (B) In extraordinary circumstances, the President  may deter-
mine, after assessment of relevant factors such as those referred
to in paragraph (4) ana volume, toxicity, mobility, strength  of
evidence,  ability to pay,  litigative risks, public interest consider-
ations,  precedential value,  and inequities and aggravating fac-
tors, not  to  include the exception referred  to in subparagraph

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                             97

  (A) if other terms, conditions, or requirements of the agreement
  containing the covenant not to sue are sufficient to provide all
  reasonable assurances that public health and the environment
  will be protected from any future releases at or from the facili-
  ty-
    (C)  The President is authorized  to include any provisions al-
  lowing future enforcement action under section 106 or 107 that
  in the discretion of the President are necessary and appropriate
  to assure protection of public health,  welfare, and  the environ-
  ment.
(g) DE MINIMIS SETTLEMENTS.—
    (1) EXPEDITED FINAL SETTLEMENT.—Whenever practicable and
  in the public interest, as determined by the President, the Presi-
  dent shall as promptly as possible  reach a final settlement with
  a potentially responsible  party in an administrative  or civil
  action under section 106 or 107 if such settlement involves only
  a minor portion of the response costs at the facility concerned
  and, in the judgment of the  President, the conditions  in either
  of the following subparagraph (A)  or (B) are met:
        (A) Both of the following are minimal in  comparison to
      other hazardous substances at the facility:
            (i) The amount of the hazardous substances contrib-
          uted by that party to the facility.
            (ii) The toxic or other  hazardous effects of the sub-
          stances contributed by that party to the facility.
        (B) The potentially  responsible party—
            (i) is the owner of the  real property on  or in which
          the facility is located;
            (ii) did not conduct or  permit the generation, trans-
          portation, storage, treatment, or disposal  of  any haz-
          ardous substance at the facility; and
            (Hi) did not contribute  to the release or  threat of re-
          lease of a hazardous substance at the facility through
          any action or omission.
      This  subparagraph (B) does not apply if the potentially re-
      sponsible party purchased the real property with actual or
      constructive knowledge  that the property was  used for the
      generation, transportation, storage,  treatment,  or disposal
      of any hazardous substance.
     (2) COVENANT NOT TO SUE.—The President may provide a cov-
  enant not to sue with respect to  the facility concerned to  any
  party who has entered  into a settlement under this subsection
  unless such a covenant would be inconsistent with the public
  interest as determined under subsection (f).
     (3) EXPEDITED  AGREEMENT.—The President  shall reach  any
  such settlement or grant  any such covenant not  to sue as soon
  as possible  after the President has available the information
  necessary to reach such a settlement or grant such a  covenant.
     (4) CONSENT DECREE OR  ADMINISTRATIVE ORDER.—A  settle-
  ment under this  subsection shall  be entered as a consent decree
  or embodied in an administrative order setting forth  the terms
  of the settlement. In the  case of any facility where the total re-
  sponse  costs exceed $500,000 (excluding interest),  if the settle-
   ment is embodied as an administrative order, the order may be

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  issued only with the prior written approval of the Attorney Gen-
  eral. If the Attorney General or his designee has not approved
  or disapproved the order within 30 days  of this referral,  the
  order snail be deemed to be approved unless the Attorney Gener-
  al and the Administrator have agreed to extend the time. The
  district court for the district in which the release or threatened
  release occurs may enforce any such administrative order.
    (5) EFFECT OF AGREEMENT.—A party who has resolved its li-
  ability to the United States under  this subsection shall not be
  liable for claims for contribution regarding matters addressed
  in the settlement. Such settlement does not discharge any of the
  other potentially responsible parties unless its terms so provide,
  but it reduces the potential liability of the others  by the amount
  of the settlement.
    (6) SETTLEMENTS WITH OTHER POTENTIALLY RESPONSIBLE PAR-
  TIES.—Nothing in this  subsection shall be construed to affect
  the authority of the President to reach settlements with other
  potentially responsible parties under this Act.
(h) COST RECOVERY SETTLEMENT AUTHORITY.—
    (1) AUTHORITY TO SETTLE.—The  head of any department or
  agency with authority to undertake a response action under this
  Act pursuant to  the national contingency plan  may consider,
  compromise,  and settle  a  claim under section 107 for costs in-
  curred by the United States Government if the  claim  has  not
  been referred to the Department of Justice for further action. In
  the case  of any facility where the total  response  costs exceed
  $500,000 (excluding interest), any claim referred to in  the pre-
  ceding sentence may be compromised and settled only with  the
  prior written approval of the Attorney General.
    (2) USE OF ARBITRATION.—Arbitration in accordance with reg-
  ulations  promulgated under this subsection may be used as a
  method of settling claims of the United States where the total
  response  costs for the facility concerned do not exceed $500,000
  (excluding interest). After consultation with the Attorney Gener-
  al,  the department or agency head may establish and publish
  regulations for the use of arbitration or settlement under this
  subsection.
    (3) RECOVERY OF CLAIMS.—If any person fails to pay a claim
  that has  been settled under this subsection, the  department or
  agency head shall request the Attorney General to bring a civil
  action in an appropriate district court to recover  the amount of
  such  claim,  plus  costs, attorneys'  fees, and interest from  the
  date of the settlement. In such an action, the terms of the settle-
  ment shall not be subject to review.
    (4) CLAIMS FOR CONTRIBUTION.—A person who has resolved its
  liability  to the United States under this subsection shall not be
  liable for claims for contribution regarding matters addressed
  in  the settlement. Such settlement shall not discharge any of
  the other potentially liable persons unless its terms so provide,
  but it reduces the potential liability of the others  by the amount
  of the settlement.
(i) SETTLEMENT PROCEDURES.—
    (1) PUBLICATION IN  FEDERAL  REGISTER.—At  least  SO days
  before any  settlement  (including  any settlement  arrived at

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    through arbitration} may become final under subsection (h),  or
    under subsection (g) in the case of a settlement embodied in an
    administrative  order, the head of the department or  agency
    which has jurisdiction over the proposed settlement shall pub-
    lish in the Federal Register notice of the proposed  settlement.
    The notice shall identify the facility concerned and  the parties
    to the proposed settlement.
      (2) COMMENT PERIOD.—For a 30-day period beginning on the
    date of publication of notice under paragraph (1) of a proposed
    settlement, the head of the department or agency which has ju-
    risdiction over the proposed settlement shall provide an oppor-
    tunity for persons who are not parties to the proposed settlement
    to file written comments relating to the proposed settlement.
      (3) CONSIDERATION OF COMMENTS.—The head of the depart-
    ment or agency shall consider any comments filed under para-
    graph (2) in determining whether or not to  consent  to the pro-
    posed settlement and may withdraw or withhold consent to the
    proposed settlement if such comments disclose facts or consider-
    ations which indicate the proposed settlement is inappropriate,
    improper, or inadequate.
  (j) NATURAL RESOURCES.—
      (1) NOTIFICATION OF TRUSTEE.—Where a release or threatened
    release of any hazardous substance that is the subject of negoti-
    ations under this section may have resulted in damages to natu-
    ral  resources under the trusteeship of the  United  States, the
    President shall notify  the  Federal natural resource trustee  of
    the  negotiations and shall  encourage the participation  of such
    trustee in the negotiations.
      (2) COVENANT NOT TO SUE.—An agreement under this  section
    may contain a covenant not to sue under section 107(aX4XC) for
    damages  to natural  resources  under  the  trusteeship  of the
    United States resulting from the release or threatened release of
    hazardous substances that  is the subject of the agreement, but
    only if the Federal natural  resource trustee  has agreed  in writ-
    ing to such covenant.  The Federal natural resource trustee may
    agree to such  covenant if the  potentially responsible party
    agrees to undertake appropriate actions necessary to protect and
    restore the natural resources damaged by such release or threat-
    ened release of hazardous substances.
  (k) SECTION Nor APPLICABLE TO VESSELS.—The provisions of this
section shall not apply to releases from a vessel.
  (I) CIVIL PENALTIES.—A potentially responsible party  which is a
party to an administrative order or consent decree entered pursuant
to an agreement under this section or section 120 (relating to Feder-
al facilities)  or which is a party to an agreement under  section 120
and which fails or refuses to comply with any term or condition of
the order, decree or agreement shall be subject to a civil penalty in
accordance with section 109.
  (m) APPLICABILITY OF GENERAL PRINCIPLES OF LAW.—In the case
of consent decrees and other settlements under this section (includ-
ing covenants not to sue), no provision of this Act shall be construed
to preclude or otherwise affect the applicability of general principles
of law regarding the setting aside or modification of consent decrees
or other settlements.

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                              100

SEC. 123. REIMBURSEMENT TO LOCAL GOVERNMENTS.
  (a) APPLICATION.—Any general purpose unit of local government
for a political subdivision  which is affected by a release or threat-
ened release  at any facility may apply  to the President  for reim-
bursement under this section.
  (b) REIMBURSEMENT.—
      (1)  TEMPORARY EMERGENCY MEASURES.—The President is au-
    thorized  to reimburse local community authorities for expenses
    incurred (before or after the  enactment  of the Superfund
    Amendments and Reauthorization Act of 1986) in carrying out
    temporary emergency measures necessary to prevent or mitigate
    injury to human health or the environment associated with the
    release or threatened release of any hazardous substance or pol-
    lutant or contaminant. Such measures may include, where ap-
    propriate, security fencing to limit access, response to fires and
    explosions,  and other  measures  which require  immediate  re-
    sponse at the local level.
      (2)  LOCAL  FUNDS  NOT SUPPLANTED.—Reimbursement  under
    this section shall not  supplant local funds normally provided
    for response.
  (c) AMOUNT.—The amount of any reimbursement to any local au-
thority  under subsection (bXD may not exceed $25,000 for a single
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 subdivision  in which the facil-
ity is located.
  (d) PROCEDURE.—Reimbursements authorized pursuant to this sec-
tion shall be in accordance with rules promulgated by  the Adminis-
trator within one year after the enactment of the Superfund Amend-
ments and Reauthorization Act of 1986.
SEC. 124. METHANE RECOVERY.
  (a) IN GENERAL.—In the  case of a facility at which equipment for
the recovery or processing (including recirculation of condensate) of
methane has been installed, for purposes  of this Act:
      (1)  The owner or operator of such equipment shall not be con-
    sidered an "owner or  operator",  as  defined  in section 101(20),
    with  respect to such facility.
      (2)  The owner or operator of such equipment shall not be con-
    sidered to have arranged for disposal or treatment of any haz-
    ardous substance at such facility pursuant to section 107 of this
    Act
      (3)  The owner or operator of such equipment shall not be sub-
    ject to any action under section 106 with respect to such facility.
  (b) EXCEPTIONS.—Subsection (a) does not apply with respect to a
release or threatened release of a hazardous substance from a facili-
ty described in  subsection (a) if either of the following circumstances
exist:
       (1)  The release or threatened release was primarily  caused by
    activities of the owner or operator of the equipment described in
    subsection (a).
       (2)  The owner or operator of such equipment would be covered
    by paragraph (1), (2), (3),  or (4) of subsection (a) of section 107

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    with respect to such release or threatened release if he were not
    the owner or operator of such equipment.
In the case of any release or threatened release referred to in para-
graph (1), the owner or operator of the equipment described in sub-
section (a) shall be liable under this Act only for costs or damages
primarily caused by the activities of such owner or operator.
SEC. 125. SECTION 300l(bX3XAXi) WASTE.
  (a) REVISION OF HAZARD RANKING SYSTEM.—This section shall
apply only to facilities which are not included or proposed for inclu-
sion on the National Priorities  List and which contain substantial
volumes of waste  described in  section SOOKbXSXAXi)  of  the Solid
Waste  Disposal Act. As expeditiously as practicable,  the  President
shall revise the hazard ranking system in effect under  the National
Contingency Plan with respect to such facilities in a manner which
assures appropriate consideration of each  of the following site-spe-
cific characteristics of such facilities:
      (1)  The quantity, toxicity, and concentrations  of hazardous
    constituents which are present in such  waste and a comparison
    thereof with other wastes.
      (2) The extent of, and potential for, release of such hazardous
    constituents into the environment.
      (3) The degree of risk to human health  and the environment
    posed by such constituents.
  (b) INCLUSION PROHIBITED.—Until the hazard ranking system is
revised as required by this section,  the President may not include on
the National Priorities List any facility which contains substantial
volumes of waste  described in  section 3001(bX3XAXi)  of the Solid
Waste  Disposal Act on the basis of an evaluation made principally
on  the volume of such waste  and  not  on  the concentrations of the
hazardous constituents of such  waste. Nothing in this section shall
be construed to affect  the President's authority to include any such
facility on the National Priorities List based  on  the presence of
other substances at such facility or to exercise any other authority of
this Act with respect to such other substances.
SEC. 126. INDIAN TRIBES,
  (a) TREATMENT GENERALLY.—The governing  body  of an Indian
tribe shall be afforded substantially the same treatment as a State
with respect  to the provisions of section 103(a) (regarding notifica-
tion of releases), section 104(cX2) (regarding consultation on remedi-
al actions), section 104(e) (regarding access to information),  section
104(i) (regarding health authorities) and section 105 (regarding roles
and responsibilities under the  national contingency plan  and sub-
mittal of priorities for remedial action, but not including the provi-
sion regarding the  inclusion of at least one facility per State on the
National Priorities List).
  (b) COMMUNITY  RELOCATION.—Should  the  President  determine
that proper  remedial  action  is the permanent relocation of tribal
members away from a contaminated site because it is cost effective
and necessary to protect  their health and welfare,  such finding
must be concurred in  by the affected tribal government before relo-
cation shall  occur. The President,  in cooperation with the Secretary
of  the Interior, shall also assure that all benefits of the  relocation
program are provided to the affected tribe and that alternative land

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of equivalent value is available and satisfactory to the tribe. Any
kinds acquired for relocation of tribal members shall be held in
trust by the United States for the benefit of the tribe.
  (c) STUDY.—The President shall conduct a survey, in consultation
with the Indian tribes, to determine the extent of hazardous waste
sites on Indian lands. Such survey shall be included within a report
which shall make  recommendations on the program needs of tribes
under this Act, with particular emphasis on how tribal participa-
tion in the administration of such programs can be  maximized.
Such report shall  be submitted to Congress along with the Presi-
dent 's budget request for fiscal year 1988.
  (d) LIMITATION.—Notwithstanding any other provision of this Act,
no action under this Act by an Indian tribe shall be barred until
the later of the following:
      (1) The applicable period of limitations has expired.
      (2) 2 years after the  United States, in its capacity as trustee
    for the tribe, gives written notice  to the governing body of the
    tribe that it will not present a claim or commence an action on
    behalf of the tribe or fails to present a claim or commence an
    action within the time  limitations specified in this Act.

     TITLE II—HAZARDOUS SUBSTANCE
       RESPONSE REVENUE ACT  OF 1980

SEC. 201. SHORT TITLE: AMENDMENT OF 1954 CODE.
  (a) SHORT TITLE.—This title may  be  cited as the "Hazardous Sub-
stance Response Revenue Act of 1980".
  (b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly
provided, whenever in this title an  amendment or repeal is ex-
pressed in  terms of an amendment to, or repeal of, a section or
other provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of 1954.

 Subtitle A—Imposition of  Taxes on Petroleum
               and Certain  Chemicals

SEC. 211. IMPOSITION OF TAXES.
  (a) GENERAL RULE.—Subtitle D (relating to miscellaneous excise
taxes)  is amended by inserting after chapter 37 the  following new
chapter:

      "CHAPTER 38—ENVIRONMENTAL TAXES

"SUBCHAPTER A. Tax on petroleum.
"SuBCHAPTER B. Tax on certain chemicals.

           "Subchapter A—Tax on Petroleum

"Sec. 4611. Imposition of tax.
"Sec. 4612. Definitions and special rules.

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                              103

"SEC. 4611. IMPOSITION OF TAX.
  "(a) GENERAL RULE.—There is hereby imposed a tax [of 0.79 cent
a barrel] at the rate specified in subsection (c) on—
      "(1) crude oil received at a United States refinery, and
      "(2) petroleum products entered into  the  United States for
    consumption, use, or warehousing.
  "(b) TAX ON CERTAIN USES AND EXPORTATION.—
      "(1) IN GENERAL.—If—
         "(A)  any domestic crude oil is  used in or exported from
        the United States, and
         "(B) before such  use or exportation, no tax was  imposed
        on such crude oil under subsection (a),
    then a  tax  [of 0.79 cent a barrel]  at the rate specified in sub-
    section  (c) is hereby imposed on such crude oil.
      "(2) EXCEPTION FOR  USE ON  PREMISES  WHERE  PRODUCED.—
    Paragraph  (1) shall not apply to any use of crude  oil for ex-
    tracting oil or natural  gas on the  premises  where such crude
    oil was produced.
  (c) RATE OF TAX.—
      'W IN GENERAL.—Except as provided in paragraph (2), the
    rate of the taxes imposed  by  this section is 8.2 cents a barrel.
      'W IMPORTED PETROLEUM  PRODUCTS.—The rate of the tax
    imposed by subsection (aX2) shall be 11.7 cents a barrel.
  t"(c)l 'W PERSONS LIABLE FOR TAX.—
      'Tl) CRUDE OIL RECEIVED AT REFINERY.—The tax imposed by
    subsection  (aXD shall be paid by  the operator of the United
    States refinery.
      "(2) IMPORTED PETROLEUM PRODUCT.—The tax imposed by sub-
    section (aX2)  shall be paid by the person entering the product
    for consumption, use, or warehousing.
      "(3) TAX ON CERTAIN USES OR EXPORTS.—The tax imposed by
    subsection  (b) shall be  paid by the person using or exporting
    the crude oil, as the case may be.
  ["(d) TERMINATION.—The taxes imposed by this section shall not
apply after September  30,   1985,  except  that  if on September 30,
1983, or September 30, 1984—
      "(1) the unobligated balance in the Hazardous Substance Re-
    sponse Trust Fund as of such  date exceeds $900,000,000, and
      "(2) the Secretary, after consultation with the Administrator
    of the Environmental Protection Agency, determines that such
    unobligated balance will exceed $500,000,000 on September 30
    of the following year if no tax is imposed under section 4611 or
    4661 during  the calendar year following  the date referred to
    above,
then no tax shall be imposed by this section during the first calen-
dar year beginning after the date  referred to in paragraph (1).]
  "(e) APPLICATION OF TAXES.—
        (1) IN GENERAL.—Except as provided in paragraphs (2) and
    (3), the taxes imposed by this section shall apply after December
    31, 1986, and before January 1, 1992.
       "(2)  NO TAX  IF UNOBLIGATED BALANCE IN  FUND  EXCEEDS
    $s,soo,ooo,ooo.—If on December 31, 1989, or December 31, 1990—
           "(A) the unobligated balance in the Hazardous Substance
        Superfund exceeds  $3,500,000,000, and

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                              104

          "(B) the Secretary,  after consultation with the Adminis-
        trator of the Environmental Protection Agency, determines
        that the  unobligated balance in the Hazardous Substance
        Superfund  will exceed $3,500,000,000 on December 31 of
        1990 or  1991, respectively, if no tax is imposed under sec-
        tion 59A, this section, and sections 4661 and 4671,
then no tax shall be imposed under this section during 1990 or 1991,
as the case may be.
      "(3} NO TAX IF AMOUNTS COLLECTED EXCEED $6,650,000,000.—
          "(A) ESTIMATES BY SECRETARY.—The Secretary as of the
        close of each calendar quarter (and at such other times as
        the  Secretary determines appropriate) shall make an  esti-
        mate of the amount of taxes which will be collected under
        section 59A, this section, and sections 4661 and 4671 and
        credited to  the Hazardous Substance Superfund during the
        period beginning January 1, 1987, and ending December 31,
        1991.
          "(B) TERMINATION IF $6,650,000,000 CREDITED BEFORE JAN-
        UARY i,  1992.—If the Secretary estimates under subpara-
        graph (A) that more than $6,650,000,000 will be credited to
        the  Fund before  January 1,  1992, no tax shall be imposed
        under this.section after the date on which (as estimated by
        the  Secretary) $6,650,000,000  will be so credited  to the
        Fund.
"SEC. 4612. DEFINITIONS AND SPECIAL RULES.
  "(a) DEFINITIONS.—For purposes of this subchapter—
      "(1) CRUDE OIL.—The term 'crude oil' includes crude oil con-
    densates and natural gasoline.
      "(2) DOMESTIC CRUDE  OIL.—The  term  'domestic crude oil'
    means any  crude oil  produced from a  well  located in the
    United States.
      "(3) PETROLEUM PRODUCT.—The term 'petroleum product' in-
    cludes crude  oil.
      "(4) UNITED STATES.—
          "(A) IN GENERAL.—The term 'United States' means the
        50 States, the District  of Columbia, the Commonwealth of
        Puerto Rico, any possession  of the United States, the Com-
        monwealth  of the Northern  Mariana  Islands,  and the
        Trust Territory of the Pacific Islands.
          "(B)  UNITED  STATES  INCLUDES   CONTINENTAL  SHELF
        AREAS.—The principles of section 638 shall apply for pur-
        poses of the term 'United States'.
          "(C) UNITED  STATES  INCLUDES FOREIGN TRADE ZONES.—
        The term 'United  States' includes any foreign trade  zone
        of the United States.
      "(5) UNITED STATES REFINERY.—The term 'United  States re-
     finery' means any facility in the United States at which crude
     oil is refined.
      "(6) REFINERIES WHICH PRODUCE NATURAL GASOLINE.—In the
     case of any United States refinery which produces natural gas-
     oline from natural gas, the gasoline so produced shall be treat-
     ed  as received at such refinery at the time so produced.

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                              105

      "(7) PREMISES.—The term 'premises' has the same meaning
    as when used for purposes of determining gross income from
    the property under section 613.
      "(8) BARREL.—The  term  'barrel'  means  42 United  States
    gallons.
      "(9) FRACTIONAL PART OF BARREL.—In the case of a fraction of
    a barrel, the tax imposed by section 4611 shall be the same
    fraction of the amount of such tax imposed on a  whole barrel.
  "(b) ONLY 1 TAX IMPOSED WITH RESPECT TO AMY PRODUCT.—No
tax shall be imposed by section 4611 with respect to any petroleum
product if the person who would be liable for such tax establishes
that a prior tax imposed by such section has been imposed with re-
spect to such product.
  "(c) CREDIT WHERE CRUDE  OIL RETURNED TO PIPELINE.—Under
regulations prescribed by  the Secretary, if an operator of a United
States refinery—
    "(1) removes crude oil  from a pipeline, and
     (2) returns a portion of such crude oil into  a stream  of other
    crude oil in the same pipeline,
there shall be allowed as a credit against the tax imposed by section
4611 to such operator an amount equal to the product of the rate of
tax imposed by section 4611 on the crude oil so removea by  such op-
erator and the' number of  barrels of crude oil returned by such oper-
ator to such pipeline. Any crude oil so returned shall  be treated for
purposes of this subchapter as crude oil on which no tax has been
imposed by section 4611.
  t"(c)l "(d) DISPOSITION OP REVENUES FROM PUERTO Rico AND
THE VIRGIN  ISLANDS.—The provisions of subsections (aX3) and (bX3)
of section 7652 shall not apply to any tax imposed! by section 4611.

       "Subchapter B—Tax on Certain Chemicals

"Sec. 4661. Imposition of tax.
"Sec. 4662. Definitions and special rules.
"SEC. 4661. IMPOSITION OF TAX.
  "(a) GENERAL RULE.—There is hereby imposed  a tax  on  any tax-
able chemical  sold by  the manufacturer, producer,  or  importer
thereof.
  "(b) AMOUNT OF TAX.—The amount of the tax imposed by subsec-
tion (a) shall be determined in accordance with the following table:
                                             The tax is the following
    "In the case of:                              amount per ton
Acetylene	  $4.87
Benzene	  4.87
Butane	  4.87
Butylene	  4.87
Butadiene	  4.87
Ethylene	  4.87
Methane	  3.44
Naphthalene	  4.87
Propylene	  4.87
Toluene	  4.87
Xylene	  4.87
Ammonia	  2.64
Antimony	  4.45
Antimony trioxide	  3.75

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                               106

                                              The tax is the following
   "In the case of:                               amount per ton
Arsenic	   4.45
Arsenic trioxide	   3.41
Barium sulfide	   2.30
Bromine	   4.45
Cadmium	   4.45
Chlorine	   2.70
Chromium	   4.45
Chromite	   1.52
Potassium dichromate	   1.69
Sodium dichromate	   1.87
Cobalt	   4.45
Cupric sulfate	   1.87
Cupric oxide	   3.59
Cuprous oxide	   3.97
Hydrochloric acid	   0.29
Hydrogen fluoride	   4.23
Lead oxide	   4.14
Mercury	   4.45
Nickel	   4.45
Phosphorus	   4.45
Stannous chloride	   2.85
Stannic chloride	   2.12
Zinc chloride	   2.22
Zinc sulfate	   1.90
Potassium hydroxide	   0.22
Sodium hydroxide	   0.28
Sulfuricacid	   0.26
Nitric acid	   0.24

  "For periods before 1992 the item relating to xylene in the preced-
ing table shall be applied by substituting '10.13 for '4.87'.
   (c) TERMINATION.—No tax shall be imposed under this section
during any period during which no tax is imposed  under section
461 l(a).

"SEC. 4662. DEFINITIONS AND SPECIAL RULES.
  "(a) DEFINITIONS.—For purposes of this subchapter—
      "(1) TAXABLE CHEMICAL.—Except  as provided  in subsection
    (b), the term 'taxable chemical' means  any substance—
           "(A) which is listed in the table under section 466l(b),
        and
           "(B) which is manufactured or  produced in the United
        States or entered into the United States for  consumption,
         use, or warehousing.
      "(2) UNITED STATES.—The term 'United States' has the mean-
     ing given such term by section 4612(aX4).
       (3) IMPORTER.—The term 'importer' means the person enter-
     ing the taxable chemical for consumption, use, or warehousing.
      ?<(4) TON.—The term 'ton' means 2,000 pounds. In the case of
     any taxable chemical which is a gas, the term 'ton' means the
     amount of such gas in cubic feet which is the equivalent of
     2,000 pounds on a molecular weight basis.
       "(5) FRACTIONAL PART OF TON.—In the case of a fraction of a
     ton, the tax imposed by section 4661 shall be the same fraction
     of the amount of such tax imposed on a whole ton.
   "(b) EXCEPTIONS; OTHER  SPECIAL RULES.—For purposes of this
subchapter—
       "(1) METHANE OR BUTANE USED AS  A FUEL.—Under regula-
     tions prescribed by the Secretary, methane or butane shall be

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                              107

   treated as a taxable chemical only if it is used otherwise than
   as a fuel or in the manufacture or production of any motor fuel,
   diesel fuel, aviation fuel, or jet fuel2 (and, for purposes of sec-
   tion 4661(a), the person so using it shall be treated as the man-
   ufacturer thereof).
     "(2) SUBSTANCES USED IN THE PRODUCTION OF FERTILIZER.—
         "(A)  IN  GENERAL.—In the case of nitric  acid,  sulfuric
        acid,  ammonia,  or methane used  to  produce ammonia
        which is a  [qualified substance,] qualified fertilizer sub-
        stance 3 no tax shall be imposed under section 4661(a).
         C"(B) QUALIFIED SUBSTANCE.—For purposes of this  sec-
        tion, the term 'qualified substance' means  any substance—
              C"(i) used in a qualified use  by the manufacturer,
           producer, or importer,
              ["(ii)  sold for use  by the  purchaser in  a qualified
           use, or
              ["(iii) sold for resale by the purchaser to a second
             Eurchaser for use by such second purchaser in a quali-
             ed use.
         ["(C) QUALIFIED ucz.—For purposes of this subsection,
        the term qualified use' means any use in the manufacture
        or production of a fertilizer.]
         * "(B) QUALIFIED FERTILIZER SUBSTANCE.—For purposes of
        this section,  the term  'qualified fertilizer substance' means
        any substance—
              "(i) used in a qualified fertilizer use by the manufac-
           turer, producer, or importer,
              "(ii) sold for use by any purchaser in a qualified fer-
           tilizer use, or
              "(Hi) sold for resale by any  purchaser  for use, or
           resale for ultimate use, in a qualified fertilizer use.
         4 "(C) QUALIFIED  FERTILIZER USE.—The term 'qualified
        fertilizer use' means any use in the manufacture or produc-
        tion of fertilizer or for direct application as a fertilizer.
         4 "(D) TAXATION  OF NONQUALIFIED SALE  OR USE.—For
        purposes of section 466l(a),  if no tax was  imposed by such
        section on the sale or use of any chemical by reason of sub-
        paragraph (A), the first person who sells or uses such chem-
        ical other than in a sale  or use described  in subparagraph
        (A) shall be  treated as the manufacturer of such chemical. *
      "(3) SULFURIC ACID PRODUCED AS A BYPRODUCT OF AIR POLLU-
    TION CONTROL.—In the case of sulfuric acid produced solely as a
    byproduct  of and on  the  same site as  air  pollution  control
    equipment, no tax shall be imposed under section 4661.
      "(4) SUBSTANCES DERIVED FROM COAL.—For  purposes of this
    subchapter, the  term 'taxable chemical' shall not include any
    substance to the extent derived from coal.
      "(5) SUBSTANCES  USED IN  THE PRODUCTION  OF MOTOR FUEL,
    ETC.—
  1 This amendment was made by section 1019(aX3) of Public Law 98-369, the Deficit Reduction
Act of 1984.
  3 This amendment was made by section 1019(bx2xA) of Public Law 98-369, the Deficit Reduc-
tion Act of 1984.
  4 Added by section 1019(bXl) of Public Law 98-369, the Deficit Reduction Art.

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                              108

          "(A) IN GENERAL.—In the case of any chemical described
        in subparagraph (D) which is a qualified fuel substance, no
        tax shall be imposed under section ^661(a).
          "(B) QUALIFIED FUEL SUBSTANCE.—For purposes  of this
        section, the term 'qualified fuel substance  means any sub-
        stance—
              "(i) used in a qualified fuel use by the manufacturer,
           producer, or importer,
              "(ii) sold for use by any purchaser in  a qualified fuel
           use, or
              "(Hi) sold for  resale  by any purchaser  for  use, or
           resale for ultimate use, in a qualified fuel use.
          "(C) QUALIFIED FUEL USE.—For purposes of this  subsec-
        tion,  the term 'qualified fuel use' means—
              "(i) any use in  the manufacture or production of any
           motor fuel, diesel fuel, aviation fuel, or jet fuel,  or
              "(ii) any use as such a fuel.
          "(D) CHEMICALS TO WHICH  PARAGRAPH APPLIES.—For pur-
        poses of this subsection, the chemicals described in this sub-
        paragraph are acetylene, benzene, butylene, butadiene, eth-
        ylene, naphthalene, propylene, toluene, and xylene.
          "(E) TAXATION OF NONQUALIFIED SALE OR USE.—For pur-
        poses of section J^661(a), if no tax was imposed by such sec-
        tion on  the sale or use of any chemical by reason  of sub-
        paragraph (A), the first person who sells or  uses such chem-
        ical other than in a sate or  use described in subparagraph
        (A) shall be treated as the manufacturer of such chemical.
      "(6) SUBSTANCE HAVING TRANSITORY PRESENCE DURING REFIN-
    ING PROCESS, ETC.—
          "(A) IN GENERAL.—No tax  shall be imposed under section
        4661(a) on any taxable chemical  described in subparagraph
        (B) by reason of the transitory presence of such chemical
        during any process of smelting, refining,  or otherwise ex-
        tracting any substance not  subject  to tax under  section
        4661(a).
          "(B) CHEMICALS TO WHICH SUBPARAGRAPH (A) APPLIES.—
        The chemicals described in this subparagraph are—
              "(i) barium sulfide, cupric sulfate, cupric oxide,  cu-
           prous oxide, lead oxide,  zinc chloride, and zinc  sulfate,
            and
              "(ii) any solution or mixture containing any chemical
            described in clause (i).
          "(C)  REMOVAL TREATED AS USE.—Nothing in subpara-
        graph (A)  shall be  construed to  apply to any chemical
        which is removed from or  ceases to be part  of any smelting,
        refining, or other extraction process.6
      "(7) SPECIAL  RULE FOR XYLENE.—Except in  the case of any
    substance imported into the United States or exported from the
    United States, the term "xylene' does not include any separated
    isomer of xylene.
      "(8) RECYCLED CHROMIUM, COBALT, AND NICKEL.—
 •Paragraphs (5) and (6) were added by section 1019(aXl) of Public Law 98-369, the Deficit
Reduction Act of 1984.

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                          109

      "(A) IN GENERAL.—No tax shall be imposed under section
   4661(a) on any chromium, cobalt, or nickel which is divert-
   ed or recovered in the United States from any solid waste
   as part of a recycling process (and not as part of the origi-
   nal manufacturing or production process).
      "(B) EXEMPTION NOT TO APPLY WHILE CORRECTIVE ACTION
   UNCOMPLETED.—Subparagraph  (A) shall not apply during
   any period tht required corrective action by the taxpayer at
   the unit at which the recycling occurs is uncompleted.
      "(C) REQUIRED CORRECTIVE ACTION.—For purposes of sub-
   paragraph (B), required corrective action shall be treated as
   uncompleted during the period—
          "(i) beginning on the date that  the corrective action
       is  required by  the Administrator  or an  authorized
       State pursuant to—
             "(I) a  final  permit  under  section 3005 of  the
           Solid Waste  Disposal Act  or  a final order under
           section 3004 or 3008 of such Act, or
             "(II) a final order under section 106 of the Com-
           prehensive Environmental  Response,  Compensa-
           tion, and Liability Act of 1980, and
          "(ii) ending on the date  the Administrator  or such
       State (as the case may be) certifies to the Secretary that
       such  corrective action has been completed.
      "(D)  SPECIAL RULE FOR GROUNDWATER  TREATMENT.—In
   the case  of corrective action requiring groundwater  treat-
   ment,  such  action shall be treated as completed as of the
   close of  the  10-year period beginning on the date such
   action  is required if such  treatment complies with  the
   permit or  order applicable  under  subparagraph  (CXi)
   throughout such period. The preceding sentence shall cease
   to apply  beginning on the date such  treatment ceases to
   comply with such permit or order.
      "(E)  SOLID  WASTE.—For purposes of this paragraph,  the
   term 'solid  waste' has the meaning given such term by  sec-
   tion 1004 of the Solid Waste Disposal Act, except that such
   term shall  not include any byproduct, coproduct, or other
   waste from any process of smelting, refining, or otherwise
   extracting any metal.
  "(9) SUBSTANCES USED IN THE PRODUCTION OF ANIMAL FEE.—
      "(A) IN GENERAL.—In the case of—
          "(i) nitric acid,
          "(ii) sulfuric acid,
          "(iii) ammonia, or
           (iv) methane used to produce ammonia,
which is a qualified animal feed substance, no tax shall be im-
posed under section 466l(a).
      "(B) QUALIFIED ANIMAL FEED SUBSTANCE.—For purposes
    of this section,  the term 'qualified animal feed substance'
    means any substance—
           "(i) used in a qualified animal feed use by the manu-
        facturer,  producer,  or importer,
           "(ii) sold for  use  by any purchaser in  a qualified
        animal feed use, or

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                             110

              "(Hi) sold  for  resale by any purchaser  for use, or
           resale for ultimate use, in a qualified animal feed use.
          "(C) QUALIFIED ANIMAL FEED USE.—The term 'qualified
        animal feed use'  means any use in the manufacture or pro-
        duction of animal feed or animal feed supplements, or of
        ingredients  used  in animal feed or  animal feed supple-
        ments.
          "(D) TAXATION OF NONQUALFIED SALE OR  USE.—For pur-
        poses of section 466l(a), if no tax was imposed by such sec-
        tion on the sale  or use of any chemical by reason of sub-
        paragraph (A), the 1st person who sells or uses such chemi-
        cal other than in a sale or use described in subparagraph
        (A) shall  be treated as the manufacturer of such chemical.
      "(10) HYDROCARBON STREAMS CONTAINING MIXTURES OF OR-
    GANIC TAXABLE CHEMICALS.—
          "(A) IN GENERAL.—No tax shall be imposed under section
        4661(a) on any organic taxable chemical while such chemi-
        cal is part of an  intermediate hydrocarbon stream contain-
        ing a mixture of organic taxable chemicals.
          "(B) REMOVAL, ETC.,  TREATED AS USE.—For purposes of
        this part, if any organic taxable chemical on which no tax
        was imposed by reason of subparagraph (A) is isolated, ex-
        tracted, or otherwise removed from, or ceases to be part of,
        an intermediate hydrocarbon stream—
              "(i) such isolation, extraction,  removal, or cessation
           shall be  treated as  use  by the  person causing  such
           event, and
              "(ii) such person shall be treated as the manufactur-
           er of such chemical.
          "(C)  REGISTRATION  REQUIREMENT.—Subparagraph  (A)
        shall not apply to any sale of any intermediate hydrocarbon
        stream unless the registration requirements of clauses (i)
        and (ii) of subsection (cX2XB) are satisfied.
          "(D) ORGANIC  TAXABLE CHEMICAL.—For purposes of this
        paragraph,  the term  'organic taxable chemical' means any
        taxable chemical which is an organic substance.
  C"(c)  USE BY  MANUFACTURER, ETC., CONSIDERED SALE.—[If] «
Except as provided  in subsection (b),  if* any person manufactures,
produces, or imports  a taxable chemical and uses  such chemical,
then such person shall be liable for  tax under section  4661 in the
same manner as if such chemical were sold by such person.]
  "(c) USE AND CERTAIN EXCHANGES BY MANUFACTURER, ETC.—
      "(1) USE TREATED AS SALE.—Except as provided in subsections
    (b) and (e), if any person manufactures, produces, or imports any
    taxable  chemical and  uses  such chemical,  then such person
    shall be liable for tax under section 4661 in the same manner
    as if such chemical were sold by such person.
       (2) SPECIAL RULES FOR INVENTORY EXCHANGES.—
          "(A) IN GENERAL.—Except as provided  in this paragraph,
        in any case in which a manufacturer, producer, or importer
  • Thia amendment was made by section 1019(c) of Public Law 98-369, the Deficit Reduction
Act of 1984.

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                             Ill

       of a taxable chemical exchanges such chemical as part of
       an inventory exchange with another person—
             'W such exchange shall not be treated as a sale, and
             "(ii) such other person  shall, for purposes of section
          4661, be treated as the manufacturer, producer, or im-
          porter of such chemical.
         "(W  REGISTRATION  REQUIREMENT.—Subparagraph  (A)
       shall not apply to any inventory exchange unless—
             'W both parties are registered with  the Secretary as
          manufacturers,  producers,  or  importers  of  taxable
          chemicals, and
             "(ii} the person receiving the taxable chemical has, at
          such time as the Secretary may prescribe,  notified the
          manufacturer, producer,  or importer of such person's
          registration number and  the internal revenue district
          in which such person is registered.
         "(C) INVENTORY EXCHANGE.—For purposes of this para-
       graph, the term  'inventory exchange' means any exchange
       in which  2 persons exchange property which is,  in  the
       hands of each person, property described in section 1221(1).
 "(d) REFUND OR CREDIT FOR CERTAIN USES.—
     "(1) IN GENERAL.—Under regulations  prescribed by the Secre-
   tary, if—
         "(A) a tax under  section 4661 was paid with respect to
       any taxable chemical, and
         "(B) such chemical was used by any person in the manu-
       facture or production of any  other substance  [the sale of
       which by such person would be taxable  under such  sec-
       tion,] which is a taxable chemical,
   then an amount equal to the tax  so paid shall be allowed as a
   credit or refund (without  interest) to such  person  in the same
   manner as if it were an overpayment  of tax imposed  by such
   section. In  any case to  which  this  paragraph  applies,  the
   amount of any  such credit or  refund  shall not exceed  the
   amount of tax  [imposed by such section  on the other sub-
   stance manufactured or produced.] imposed by such section on
   the other substance manufactured or produced (or which would
   have been imposed by such section on such other substance but
   not for subsection (b) or (e) of this  section).
     "(2) USE AS FERTILIZER.—Under regulations prescribed by the
   Secretary, if—
         "(A) a tax under section 4661 was paid with respect to
       nitric acid,  sulfuric acid, ammonia, or methane  used to
       make ammonia without regard to subsection (bX2), and
         ["(B) any person uses such substance, or sells such  sub-
       stance for use, as a  qualified  substance,] 7
         "(B) any person uses such substance as a qualified fertil-
       izer, 7
   then an amount equal to the excess of the  tax so paid  over the
   tax determined with regard to subsection (bX2) shall be allowed
   as a credit  or refund (without interest) to such person  in the
 ' Thia amendment waa made by section 1019(bX2)(B) of Public Law 98-369, the Deficit Reduction
Act of 1984.

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    same manner as if it were an overpayment of tax imposed by
    this section.
      8 "(3)  USE AS QUALIFIED  FUEL.—Under regulations prescribed
    by the Secretary, if—
         "(A) a tax under section 4661 was paid with  respect to
        any chemical described in subparagraph (D) of subsection
        (bX5) without regard to subsection (b)(5), and
          "(B) any person  uses such chemical  as  a  qualified fuel
        substance,
    then an amount equal  to the excess of the tax so paid over the
    tax determined with regard to subsection (bX2) shall be allowed
    as a credit or refund (without interest) to  such  person  in the
    same manner as if it were an overpayment of tax imposed by
    this section.
      "(4) USE IN THE PRODUCTION OF ANIMAL FEED.—Under regula-
    tions prescribed by the Secretary, if—
          "(A) a tax under section 4661 was paid with  respect to
        nitric acid, sulfuric acid, ammonia, or methane used to
       produce ammonia,  without regard to subsection (bX9), and
          "(B}  any person uses  such  substance as  a  qualified
        animal feed substance,
    then an amount equal  to the excess of the tax so paid over the
    tax determined with regard to subsection (bX9) shall be allowed
    as a credit or refund (without interest) to such person  in the
    same manner as if it were an overpayment of tax imposed by
    this section.
  "(e) EXEMPTION FOR EXPORTS OF  TAXABLE CHEMICALS.—
      "(1) TAX-FREE SALES.—
          "(A) IN GENERAL.—No tax shall be imposed under section
        4661 on the sale by the manufacturer or producer  of any
        taxable chemical for export,  or for resale by the purchaser
        to a second purchaser for export.
          "(B) PROOF OF EXPORT REQUIRED.—Rules  similar to the
        rules of section 4221(b) shall appy for purposes of subpara-
        graph (A).
      "(z) CREDIT OR REFUND WHERE  TAX PAID.—
          "(A)  IN GENERAL.—Except as provided in subparagraph
        (B), if—
              "(i) tax under section  4661 was paid with respect to
            any taxable chemical, and
              "(UXI) such chemical was exported by  any person, or
               (II) such chemical was used  as a material  in the
            manufacture or production of a  substance which was
            exported  by any  person and  which, at  the time of
            export,  was a  taxable substance (as defined  in section
            4672(a)),
        credit or refund (without  interest) of such tax shall be al-
        lowed or made to the person who paid such tax.
          "(B}  CONDITION TO ALLOWANCE.—No credit or  refund
        shall be allowed or made under subparagraph (A) unless
        the person who paid the tax establishes that he—
 1 Paragraph (3) ia an amendment made by section 1019(aX2) of Public Law 98-369, the Deficit
Reduction Act of 1984.

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                             113

             "(i) has repaid or agreed to repay the amount of the
           tax to the person who exported the taxable chemical or
           taxable substance (as so defined}, or
             "(ii) has obtained the written consent of such export-
           er to the allowance of the credit or the making of the
           refund,
      "(3) REGULATIONS.—The Secretary shall prescribe such regu-
    lations as may be necessary  to carry out the purposes of this
    subsection.
  C"(e)J  "(/) DISPOSITION OF REVENUES FROM PUERTO Rico AND THE
VIRGIN ISLANDS.—The provisions of subsections (a)(3) and (bX3) of
section 7652 shall not apply to any tax imposed by section 4661.".
  (b) CLERICAL AMENDMENT.—The table of chapters for subtitle D is
amended by inserting after the item relating to chapter 37 the fol-
lowing new item:
"CHAPTER 38. Environmental taxes.".
  (c) EFFECTIVE DATE.—The amendments made by this section shall
take effect on April 1, 1981.

   [Subtitle B 9—Establishment of Hazardous
          Substance  Response Trust Fund

[SEC. 221. ESTABLISHMENT OF HAZARDOUS SUBSTANCE  RESPONSE
          TRUST FUND.
  [(a) CREATION  OF TRUST FUND.—There is  established in  the
Treasury of the United States  a trust  fund to be known as  the
["Hazardous  Substance Response Trust Fund"]  "Hazardous Sub-
stances Superfund"10 (hereinafter in this subtitle referred  to as
the "Response Trust Fund"), consisting of such amounts as may be
appropriated or transferred to such Trust Fund as provided in this
section.
  [(b) TRANSFERS TO RESPONSE TRUST FUND.—
      [(1)  AMOUNTS EQUIVALENT TO  CERTAIN TAXES,  ETC.—There
    are hereby appropriated, out of any money in the Treasury not
    otherwise appropriated, to the Response Trust Fund amounts
    determined by the Secretary of the Treasury (hereinafter in
    this  subtitle referred to as the "Secretary") to be equivalent
    to—
          [(A) the amounts received in the Treasury under section
        4611  or 4661 of the Internal Revenue Code of 1954,
          [(B)  the amounts recovered on behalf of the  Response
        Trust Fund under this Act,
           5(C)  all moneys recovered or  collected under section
           frX6XB) of the Clean Water Act,
          [(D) penalties assessed under title I of this Act, and
          [(E) punitive damages under section  107(cX8) of this Act.
      [(2) AUTHORIZATION FOR APPROPRIATIONS.—There is author-
    ized  to be appropriated to the Emergency Response Trust Fund
    for fiscal year—
  •Section 517(c) of Public Law 99-499 repeals this subtitle.
  10 This amendment was made by section 204 of Public Law 99-499.

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                             114

          [(A) 1981, $44,000,000,
           !(B) 1982, $44,000,000,
           :(C) 1983, $44,000,000,
           S(D) 1984, $44,000,000, and
          [(E) 1985, $44,000,000, plus an amount equal to so much
        of the aggregate  amount authorized  to  be appropriated
        under subparagraphs (A), (B), (C), and  (D) as has not been
        appropriated before October 1, 1984.
      [(3) TRANSFER OF FUNDS.—There shall be transferred to the
    Response Trust Fund—
          [(A) one-half of the  unobligated  balance remaining
        before the  date of the enactment of  this Act under  the
        Fund in section 311 of the Clean Water Act, and
          [(B) the amounts appropriated under section 504(b) of
        the Clean Water Act during any fiscal year.
  [(c) EXPENDITURES FROM RESPONSE TRUST FUND.—
      [(1) IN  GENERAL.—Amounts  in  the Response  Trust Fund
    shall be available in connection with releases or threats of re-
    leases of hazardous substances into the  environment only for
    purposes of making expenditures which are described  in  sec-
    tion  111 (other than subsection (j) thereof) of this Act, as in
    effect on the date of the enactment of this Act, including—
          [(A) response costs,
          f(B) claims  asserted and compensable  but unsatisfied
        under section 311 of the Clean Water Act,
          [(C) claims for injury to, or destruction or loss of, natu-
        ral resources, and
          [(D) related costs described in section lll(c) of this Act.
      [(2) LIMITATIONS ON EXPENDITURES.—At least 85 percent of
    the amounts appropriated to the Response Trust Fund under
    subsection (b) (IXA) and (2) shall be reserved—
          [(A) for the  purposes specified in paragraphs (1), (2),  and
        (4) of section lll(a) of this Act, and
          [(B) for the  repayment of advances  made under section
        223(c), other than advances subject to the limitation of sec-
        tion 223(cX2XO.
  [(c) EXPENDITURES FROM TRUST FUND.—Amounts in the Hazard-
ous Substances Superfund established under  subchapter A of chap-
ter 98 of the Internal Revenue Code of 1954  shall be available for
expenditure only as provided in section 111 of this Act. * *
[SEC. 222. LIABILITY OF  UNITED STATES LIMITED TO AMOUNT IN TRUST
           FUND.
  [(a) GENERAL RULE.—Any claim filed against the Response Trust
Fund may be paid  only out of such Trust Fund. Nothing in this Act
(or in any amendment made by this Act) shall authorize the pay-
ment by the United States Government of any additional amount
with respect to any such claim out of any source other than the
Response-Trust Fund.
  [(b) ORDER IN WHICH UNPAID CLAIMS ARE To BE PAID.—If at any
time the Response  Trust Fund is unable (by reason of subsection (a)
or the  limitation of section 221(cX2)) to  pay  all of the claims pay-
  1»Section 204(b) of Public Law 99-499.

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                             115

able out of such Trust Fund at such time, such claims shall, to the
extent permitted under subsection (a), be paid in full in the order
in which they were finally determined.
[SEC. 223. ADMINISTRATIVE PROVISIONS.
  [(a) METHOD OF TRANSFER.—The  amounts  appropriated by sec-
tion 221(bXD shall be transferred at least monthly from the general
fund of the Treasury to the Response Trust Fund on the  basis  of
estimates made by the Secretary of the amounts referred to in such
section. Proper adjustments shall be made in the amount subse-
quently transferred to the extent prior estimates were in excess  of
or less than the amounts required to be transferred.
  [(b) MANAGEMENT OF TRUST FUND.—
      C(l) REPORT.—The  Secretary shall be the trustee of the Re-
    sponse Trust Fund, and shall report to the Congress for each
    fiscal year ending on  or after September 30, 1981, on the finan-
    cial condition and the  results of the operations of  such Trust
    Fund during such fiscal year and on its expected condition and
    operations during the next 5 fiscal years. Such report  shall  be
    printed as a House document of the session of the Congress  to
    which the report is made.
      [(2) INVESTMENT.—It shall be the duty of the Secretary  to
    invest such portion of such Trust Fund as is not, in his judg-
    ment, required to meet current withdrawals. Such investments
    shall be in public debt securities with maturities suitable for
    the needs  of such Trust Fund and bearing interest at rates de-
    termined by the Secretary, taking into consideration  current
    market  yields on outstanding  marketable obligations of the
    United States of comparable maturities.  The  income  on such
    investments shall be  credited to and form a part of such Trust
    Fund.
  £(c) AUTHORITY To BORROW.—
       [(1) IN  GENERAL.—There are authorized to be appropriated
    to the Response Trust Fund, as  repayable advances, such sums
    as may  be necessary to carry out the purposes of  such Trust
    Fund.
       [(2) LIMITATIONS ON ADVANCES TO RESPONSE TRUST FUND.—
          [(A) AGGREGATE ADVANCES.—The  maximum aggregate
        amount of repayable advances to the  Response Trust Fund
        which is outstanding at any one time shall not exceed  an
        amount which the  Secretary estimates will be equal to the
        sum of the amounts which will be appropriated or trans-
        ferred to such Trust Fund  under paragraph (1XA) of sec-
        tion 221(b) of this Act for the following 12 months,  and
          [(B) ADVANCES  FOR PAYMENT OF  RESPONSE  COSTS.—No
        amount may be advanced after March 31, 1983, to the Re-
        sponse Trust Fund for the purpose of paying response costs
        described in section lll(a) (1), (2), or (4), unless such  costs
        are incurred incident  to any spill the effects of which the
        Secretary determines to be catastrophic.
          [(C) ADVANCES FOR OTHER COSTS.—The maiximum aggre-
        gate amount advanced to the Response Trust Fund which
        is outstanding at any one time for the purpose of paying
        costs  other than costs described in section lll(a) (1), (2), or

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       (4) shall not exceed one-third of the  amount of the esti-
       mate made under subparagraph (A).
          [(D)  FINAL REPAYMENT.—No advance shall be made to
       the Response Trust Fund after September 30, 1985, and all
       advances to such Fund shall be repaid on or before such
       date.
      [(3) REPAYMENT OF ADVANCES.—Advances made pursuant to
    this subsection shall be repaid, and interest on such advances
    shall be paid, to the general  fund of the Treasury when the
    Secretary determines that  moneys are available for such pur-
    poses in the Trust Fund to  which the advance was made. Such
    interest shall be at rates computed in the same manner as pro-
    vided in subsection (b) and shall be compounded annually.]

 Subtitle C—Post-Closure Tax  and Trust Fund

SEC. 231. IMPOSITION OF TAX.
  (a) IN GENERAL.—Chapter 38, as added by section 211, is amend-
ed by adding at the end thereof the following new subchapter:

       "Subchapter C—Tax on Hazardous Wastes

"Sec. 4681.  Imposition of tax.
"Sec. 4682.  Definitions and special rules.
"SEC. 4681. IMPOSITION OF TAX.
  "(a) GENERAL RULE.—There is hereby  imposed  a tax  on the re-
ceipt of hazardous waste  at a qualified hazardous waste disposal fa-
cility.
  "(b) AMOUNT OF TAX.—The amount of the tax imposed by subsec-
tion (a) shall be equal to  $2.13 per dry weight ton  of hazardous
waste.
"SEC. 4682. DEFINITIONS AND SPECIAL RULES.
  "(a) DEFINITIONS.—For purposes of this  subchapter—
      "(1) HAZARDOUS WASTE.—The term 'hazardous waste' means
    any waste—
          "(A)  having the characteristics identified under section
       3001 of the Solid Waste Disposal Act, as in  effect on the
       date of the enactment of this Act (other than waste the
       regulation of which under such Act has been suspended by
       Act of Congress on that date), or
          "(B)  subject to the reporting  or recordkeeping require-
       ments of sections 3002  and 3004 of such Act, as so in effect.
      "(2)  QUALIFIED  HAZARDOUS  WASTE DISPOSAL FACILITY.—The
    term 'qualified hazardous waste disposal facility' means any fa-
    cility which has received a  permit or is accorded interim status
    under section 3005 of the Solid Waste Disposal Act.
  "(b) TAX IMPOSED ON OWNER OR OPERATOR.—The tax imposed by
section 4681 shall be imposed on the owner or operator of the quali-
fied hazardous waste disposal facility.
  "(c) TAX Nor To APPLY TO CERTAIN WASTES.—The tax imposed by
section 4681 shall not apply to  any hazardous waste which will not

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remain at the qualified hazardous waste disposal facility after the
facility is closed.
  "(d) APPLICABILITY OF SECTION.—The tax imposed by section 4681
shall apply to the receipt of hazardous  waste after September  30,
1983, except that if, as of September 30 of any subsequent calendar
year,  the  unobligated  balance  of the Post-closure Liability Trust
Fund exceeds $200,000,000, no tax shall be imposed under such sec-
tion during the following calendar year.".
  (b)  CONFORMING  AMENDMENT.—The  table  of subchapters  for
chapter 38 is amended by adding at the end thereof the following
new item:
"Subchapter C—Tax on Hazardous Wastes.".
SEC. 232. POST-CLOSURE LIABILITY TRUST FUND.
  (a) CREATION OF TRUST FUND.—There is established in the Treas-
ury of the United States  a  trust fund to be known as the "Post-
closure Liability Trust Fund", consisting of such amounts  as may
be appropriated, credited, or transferred to such Trust Fund.
  (b) EXPENDITURES FROM POST-CLOSURE LIABILITY TRUST FUND.—
Amounts in the Post-closure Liability Trust Fund shall be available
only for the purposes described in sections 107(k) and lll(j) of this
Act (as in effect on the date of the enactment of this Act).
  (c) ADMINISTRATIVE PROVISIONS.—The provisions of sections 222
and 223 of this Act shall apply with respect to the Trust Fund es-
tablished under this section, except that the amount of any repay-
able  advances outstanding at  any  one time  shall  not  exceed
$200,000,000.

          TITLE III—MISCELLANEOUS PROVISIONS

                      REPORTS AND STUDIES

  SEC. 301. (aXD  The President shall  submit to the Congress,
within four years after enactment of this Act, a comprehensive
report on experience with the  implementation of this  Act, includ-
ing, but not limited to—
      (A) the extent to which the Act and Fund  are effective in  en-
    abling Government to respond to and mitigate the effects of re-
    leases of hazardous substances;
      (B) a summary of past receipts and disbursements from  the
    Fund;
      (C) a projection of any future funding needs remaining after
    the expiration of authority to collect taxes, and of the threat to
    public health, welfare, and  the environment posed  by the pro-
    jected releases which create any such needs;
      (D) the  record  and experience of the Fund in recovering
    Fund disbursements from liable parties;
      (E) the  record of State  participation in  the system of re-
    sponse, liability, and compensation established by this Act;
      (F) the  impact of the  taxes imposed by title II of this Act on
    the Nation's balance of trade with other countries;
      (G) an  assessment of the feasibility and desirability of  a
    schedule  of taxes which would take into  account one or more
    of the following: the likelihood of a release of a hazardous sub-
    stance, the degree of hazard and risk of harm to public health,

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    welfare, and the environment resulting from any such release,
    incentives to proper handling, recycling, incineration, and neu-
    tralization of hazardous wastes, and disincentives to improper
    or illegal handling or disposal of hazardous materials, adminis-
    trative and  reporting burdens on  Government and industry,
    and the extent to which the tax burden falls on the substances
    and parties which create  the problems addressed by this Act.
    In preparing the report, the President shall  consult with ap-
    propriate Federal, State, and local agencies, affected industries
    and claimants, and  such  other interested parties as he may
    find useful. Based upon the analyses and consultation required
    by this subsection,  the President shall  also include  in  the
    report any recommendations for  legislative changes he may
    deem necessary  for the better effectuation  of the purposes of
    this Act, including but not  limited to recommendations con-
    cerning authorization levels, taxes, State participation, liability
    and liability limits, and financial  responsibility provisions for
    the Response Trust Fund  and the Post-closure Liability Trust
    Fund;
      (H) an exemption  from  or an increase  in the substances or
    the amount of taxes  imposed by section  4661 of the Internal
    Revenue Code of 1954 for  copper, lead, and  zinc oxide, and for
    feedstocks when  used in  the manufacture  and production of
    fertilizers, based  upon the expenditure experience of the Re-
    sponse Trust Fund;
      (I) the economic impact of taxing coal-derived substances and
    recycled metals.
  (2) The Administrator of the  Environmental  Protection Agency
(in consultation with the Secretary of the Treasury) shall submit to
the Congress (i) within four years after enactment of this Act, a
report identifying  additional wastes designated  by rule as hazard-
ous after the effective date of this Act and  pursuant to section 3001
of the Solid Waste Disposal Act and recommendations on appropri-
ate tax rates for such wastes for the Post-closure Liability Trust
Fund. The report shall, in addition, recommend a tax rate, consid-
ering the quantity and potential danger to human health and the
environment posed by the disposal of any wastes which the Admin-
istrator,   pursuant  to   subsection  3001(bX2XB)   and  subsection
3001(bX3XA) of the Solid Waste Disposal  Act of 1980,  has deter-
mined should be subject to regulation under subtitle C of such Act,
(ii) within three years after enactment of this Act, a  report on the
necessity for and the adequacy of the revenue raised, in relation to
estimated future requirements,  of the Post-closure Liability Trust
Fund.
  (b) The President shall  conduct a study to determine (1) whether
adequate  private  insurance protection is  available on reasonable
terms and conditions to the owners and operators  of vessels and fa-
cilities subject to  liability under section  107 of this  Act,  and  (2)
whether the market  for such  insurance is sufficiently competitive
to assure purchasers of features  such  as a reasonable range of de-
ductibles, coinsurance provisions,  and exclusions. The President
shall submit the results  of his study, together with his recommen-
dations, within two years of the date of enactment of this Act, and

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shall submit an interim report on his study within one year of the
date of enactment of this Act.
  (cXD The President, acting  through Federal officials designated
by the National Contingency  Plan published under  section 105 of
this Act, shall study and, not  later than two years after the enact-
ment  of this Act, shall promulgate regulations for the assessment
of damages for injury to,  destruction of, or loss of natural resources
resulting from a release of oil or a hazardous substance for the pur-
poses  of this Act and section 311(f) (4) and (5) of the Federal Water
Pollution Control Act. Notwithstanding the failure of the President
to promulgate the regulations required under this subsection on the
required date,  the President shall promulgate  such regulations not
later than  6 months after the  enactment of the Superfund Amend-
ments and Reauthorization Act of 1986.
  (2) Such regulations shall  specify  (A) standard procedures for
simplified assessments requiring minimal field observation, includ-
ing establishing measures of damages based on units of discharge
or release or units of affected area, and (B) alternative protocols for
conducting assessments in individual cases to determine the type
and extent of short- and long-term injury, destruction, or loss. Such
regulations shall identify the best available  procedures to deter-
mine  such damages, including both direct  and indirect injury, de-
struction, or loss and shall take into consideration  factors includ-
ing, but not limited to, replacement value, use value, and ability of
the ecosystem or resource to recover.
  (3) Such regulations shall be reviewed and revised  as appropriate
every two years.
  (d) The Administrator of the  Environmental Protection  Agency
shall, in consultation with other Federal agencies and appropriate
representatives of State and local governments and nongovernmen-
tal agencies, conduct a study and report to the Congress within two
years of the date of enactment  of this Act on the issues, alterna-
tives, and  policy considerations involved in the selection  of loca-
tions  for hazardous waste treatment, storage, and  disposal  facili-
ties. This study shall include—
      (A) an assessment of current and projected treatment, stor-
    age, and disposal capacity needs and shortfalls! for  hazardous
    waste by management category on a State-by-State basis;
      (B) an evaluation of the  appropriateness of  a regional ap-
    proach to siting and designing hazardous waste management
    facilities and the identification  of hazardous waste manage-
    ment  regions,  interstate  or intrastate, or both,  with similar
    hazardous waste management needs;
      (C) solicitation and analysis of  proposals for the construction
    and operation  of hazardous  waste  management facilities by
    nongovernmental entities,  except that no proposal solicited
    under terms of this subsection shall be analyzed if it involves
    cost to the United States Government  or fails to comply with
    the requirements of subtitle C of the Solid Waste Disposal Act
    and other applicable provisions of law;
      (D)  recommendations on the  appropriate balance between
    public and private sector  involvement in the siting, design, and
    operation of new hazardous waste management facilities;

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      (E) documentation of the major reasons for public opposition
    to new hazardous waste management facilities; and
      (F) an evaluation of the various options  for overcoming ob-
    stacles to siting new facilities, including needed legislation for
    implementing the most suitable option or options.
  (eXD In order to determine the adequacy of existing common law
and statutory remedies in providing legal redress for harm to man
and the environment caused by the release of hazardous substances
into the environment, there shall  be submitted to the Congress a
study within twelve months of enactment of this Act.
  (2)  This  study  shall  be conducted with  the assistance of the
American Bar Association, the American Law  Institute,  the Asso-
ciation of American Trial Lawyers, and the National Association of
State  Attorneys General with the President of each entity selecting
three  members from  each organization to conduct the study.  The
study chairman and one reporter shall be elected from among the
twelve members of the study group.
  (3) As part of their review of the adequacy of existing common
law and statutory remedies, the study group shall evaluate the fol-
lowing:
      (A)  the nature, adequacy, and availability of existing reme-
    dies under present law in compensating for harm to man from
    the release of hazardous substances;
      (B) the nature of barriers to recovery (particularly with re-
    spect to burdens of going forward and of proof and relevancy)
    and the role such barriers play in the legal  system;
      (C) the scope of the evidentiary burdens placed  on  the plain-
    tiff in proving harm from the  release of hazardous substances,
    particularly in  light of the scientific uncertainty over causa-
    tion with respect to—
          (i) carcinogens, mutagens, and teratogens, and
          (ii) the human health effects of exposure to low doses of
        hazardous substances over long periods of time;
      (D) the nature and adequacy of existing remedies under
    present law in providing compensation for  damages to natural
    resources from the release of hazardous substances;
      (E)  the scope of liability under existing  law  and the conse-
    quences,  particularly with respect  to obtaining  insurance, of
    any changes in such liability;
      (F) barriers to recovery posed by existing statutes of limita-
    tions.
  (4) The report shall be submitted to the Congress with appropri-
ate recommendations. Such  recommendations  shall  explicitly ad-
dress—
      (A) the need for  revisions in existing statutory or common
    law, and
      (B) whether such revisions  should take the form of Federal
    statutes or the development of a model code which is recom-
    mended for adoption by the States.
  (5) The Fund shall pay administrative expenses incurred for the
study. No expenses shall be available to pay compensation, except
expenses on a per diem basis for  the one reporter, but in no  case
shall  the total expenses of the study exceed $300,000.

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  (f) The President, acting through the Administrator of the Envi-
ronmental Protection Agency, the Secretary of Transportation, the
Administrator of the Occupational Safety and Headth Administra-
tion, and  the Director of the National Institute for Occupational
Safety and Health shall  study and, not later  than two years after
the enactment of this Act, shall modify the  national contingency
plan to provide for the protection of the health and safety of em-
ployees involved in response actions.
  (g) INSURABILITY STUDY.—
      (1) STUDY BY COMPTROLLER GENERAL.—The Comptroller Gen-
    eral of the United States, in consultation with the persons de-
    scribed in paragraph (2), shall undertake  a study to determine
    the insurability, and effects on the standard of care, of the li-
    ability of each of the following:
          (A) Persons who generate hazardous substances: liability
        for costs and damages under this Act.
          (B) Persons who own  or operate facilities: liability for
        costs and damages under this Act.
          (C) Persons liable for injury to persons or property caused
        by the release of  hazardous substances  into the  environ-
        ment.
      (2) CONSULTATION.—In conducting the study under this sub-
    section,  the Comptroller General shall consult with the follow-
    ing:
          (A) Representatives of the Administrator.
          (B) Representatives of persons described in subparagraphs
        (A) through (C) of the preceding paragraph.
          (C) Representatives (i) of groups or organizations com-
        prised generally of persons adversely affected by releases or
        threatened releases  of  hazardous  substances  and (ii) of
        groups organized for protecting the interests of consumers.
          (D) Representatives of property and casualty insurers.
          (E) Representatives of reinsurers.
          (F) Persons responsible for  the regulation of insurance at
        the State level.
      (3) ITEMS EVALUATED.—The study under this section shall in-
    clude, among other matters, an evaluation of the following:
          (A) Current economic conditions  in, and  the future out-
        look for, the commercial market for insurance and reinsur-
        ance.
          (B) Current trends in  statutory and common law  reme-
        dies.
          (C) The impact  of possible changes in traditional stand-
        ards of liability, proof,  evidence,  and damages on existing
        statutory and common law remedies.
          (D) The effect of the  standard of liability and extent of
        the persons upon whom it is  imposed  under this Act on the
        protection of human health  and the environment and on
        the  availability,  underwriting, and  pricing of insurance
        coverage.
          (E) Current trends, if any, in the judicial interpretation
        and construction of applicable insurance contracts, together
        with the degree to which  amendments in the language of

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      such contracts and the description of the risks assumed,
      could affect such trends.
        (F) The frequency and severity of a representative sample
      of claims closed during the calendar year immediately pre-
      ceding the enactment of this subsection.
        (G) Impediments to the acquisition of insurance or other
      means of obtaining liability coverage other than those re-
      ferred to in the preceding subparagraphs.
        (H) The effects of the standards of liability and financial
      responsibility requirements imposed pursuant to this Act on
      the  cost of, and incentives for, developing and demonstrat-
      ing alternative and innovative treatment technologies, as
      well as waste generation minimization.
    (4)  SUBMISSION.—The  Comptroller  General shall submit  a
  report on the results of the study to Congress with appropriate
  recommendations within 12 months after the enactment of this
  subsection.
(h) REPORT AND OVERSIGHT REQUIREMENTS.—
    (1) ANNUAL REPORT BY EPA.—On  January 1 of each year the
  Administrator of the Environmental Protection Agency shall
  submit  an  annual report to Congress of such Agency on the
  progress achieved in implementing  this Act during the preced-
  ing fiscal year. In addition such report shall specifically in-
  clude each of the following:
        (A) A detailed  description  of each feasibility study car-
      ried out at a facility under title I of this Act.
        (B) The status and estimated date of completion of each
      such study.
        (C) Notice of each such study which will not meet a pre-
      viously published schedule for completion and the new esti-
      mated date for completion.
        (D) An  evaluation of  newly developed feasible  and
      achievable permanent treatment technologies.
        (E) Progress made  in reducing the number of facilities
      subject to review under section 121(c).
        (F) A report on the status of all remedial and enforce-
      ment actions undertaken during the prior fiscal year, in-
      cluding a comparison to remedial ana enforcement actions
      undertaken in prior fiscal years.
        (G) An estimate of the amount of resources, including the
      number of work years or personnel, which  would be neces-
      sary for each department, agency, or instrumentality which
      is carrying out any activities of this Act to complete the im-
      plementation of all duties  vested in the department, agency,
      or instrumentality under this Act.
    (2) REVIEW BY  INSPECTOR GENERAL.—Consistent with the au-
  thorities of the Inspector General Act of 1978 the Inspector Gen-
  eral of  the Environmental Protection Agency shall review any
  report submitted under paragraph (1) related  to EPA's activities
  for reasonableness and accuracy and submit to Congress,  as  a
  part of such report a report on  the results of such review.
    (3)  CONGRESSIONAL OVERSIGHT.—After  receiving  the reports
  under paragraphs (1) and (2) of this subsection  in any calendar
  year,  the appropriate authorizing committees of Congress  shall

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    conduct oversight hearings to ensure that this Act is being im-
    plemented according to the purposes of this Act and congres-
    sional intent in enacting this Act.

               EFFECTIVE DATES, SAVINGS PROVISION

  SEC. 302. (a) Unless otherwise provided, all provisions  of this Act
shall be effective on the date of enactment of this Act.
  (b) Any regulation  issued pursuant to any provisions of section
311 of the Clean Water Act which is repealed or superseded by this
Act and which is in effect on the date immediately preceding the
effective date of this Act shall be deemed to be a regulation issued
pursuant to the  authority of this Act and shall remain in full force
and effect unless  or  until superseded by new regulations  issued
thereunder.
  (c) Any regulation—
      (1) respecting financial responsibility,
      (2) issued pursuant to any provision of law repealed or super-
    seded by this Act, and
      (3) in effect  on the  date immediately preceding the effective
    date of this  Act shall be deemed to be a regulation,  issued pur-
    suant to the authority of this Act and shall remain in full force
    and effect unless or until superseded by  new regulations issued
    thereunder.
  (d) Nothing in this Act shall affect or modify in any way the obli-
gations or liabilities of any person under other Federal or State
law, including common law, with respect to releases of hazardous
substances or other pollutants or contaminants. The provisions of
this Act shall not be considered, interpreted,  or construed in any
way as reflecting  a determination,  in part  or whole, of policy re-
garding the inapplicability of strict liability, or strict liability doc-
trines, to  activities relating to hazardous substances, pollutants, or
contaminants or other such activities.

                  [EXPIRATION, SUNSET PROVISION

   [SEC. 303. Unless reauthorized by the Congress, the authority to
collect taxes conferred by this Act shall terminate on  September
30, 1985, or when the sum of the amounts received in the Treasury
under section 4611 and under 4661 of the Internal Revenue Code of
1954 total $1,380,000,000, whichever occurs  first. The Secretary of
the Treasury shall estimate when this  level of $1,380,,000,000 will
be reached and  shall by regulation, provide  procedures:  for the ter-
mination of the tax authorized by this Act and imposed under sec-
tions  4611 and 4661 of the Internal Revenue  Code of 1954.] "

                    CONFORMING AMENDMENTS

   SEC. 304. (a) Subsection (b) of section 504 of the Federal Water
Pollution Control Act is hereby repealed.
   (b) One-half of the unobligated balance remaining before the date
of the enactment  of this Act under subsection (k) of section 311 of
the Federal Water Pollution Control Act and all sums appropriated
under section 504(b) of the Federal Water Pollution Control Act
  i * Repealed by section 501(b) of P.L. 99-499.
   65-705 0-87-5

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                              124

shall be transferred to the Fund established under title n of this
Act.
  (c) In any case in which any provision of section 311 of the Feder-
al Water Pollution Control Act is determined to be in conflict with
any provisions of this Act, the  provisions of this Act shall apply.

                        LEGISLATIVE VETO

  SEC. 305. (a) Notwithstanding any other provision of law, simulta-
neously with promulgation or repromulgation of any rule or regu-
lation under authority of title I  of this  Act, the head of the depart-
ment, agency, or instrumentality promulgating such rule or regula-
tion shall transmit a copy thereof to the Secretary of the Senate
and the Clerk of the House of Representatives. Except as provided
in subsection  (b) of this section, the rule or  regulation shall not
become effective, if—
      (1) within ninety calendar days of continuous session of Con-
    gress  after the date of promulgation, both Houses of Congress
    adopt a concurrent resolution, the matter after the resolving
    clause of which is  as  follows: "That Congress disapproves the
    rule or regulation promulgated by  the              dealing
    with the matter of             , which  rule or regulation was
    transmitted to Congress  on              .", the  blank spaces
    therein being appropriately filled; or
      (2) within sixty calendar  days of continuous session of Con-
    gress  after the date of promulgation, one House of Congress
    adopts such a concurrent resolution and transmits such resolu-
    tion to the other House, and such resolution is not disapproved
    by such other House within thirty  calendar days of continuous
    session of Congress after such transmittal.
  (b) If, at the end of sixty calendar days of continuous session of
Congress after the date of promulgation of a rule or regulation, no
committee of either House of Congress has reported or been dis-
charged from further consideration of  a concurrent resolution dis-
approving the rule or  regulation and  neither House has  adopted
such a resolution, the rule or regulation may go into effect immedi-
ately. If, within such sixty calendar days, such a committee has re-
ported or been discharged  from  further consideration of such a res-
olution, or either House has adopted such a resolution, the rule or
regulation may go into effect  not sooner than  ninety calendar days
of  continuous  session  of  Congress after such rule  is prescribed
unless disapproved as provided in subsection (a) of this section.
   (c) For purposes of subsections (a) and (b) of this section—
       (1) continuity of session is broken only by an adjournment of
    Congress sine die; and
       (2) the days on which either House is not in session because
    of an  adjournment of more than  three days to a day certain
    are excluded in the computation  of thirty, sixty, and ninety
    calendar days of continuous session of Congress.
   (d) Congressional inaction on, or rejection of, a resolution of dis-
approval  shall not be  deemed  an expression of  approval of such
rule or regulation.

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                              125

                        TRANSPORTATION

  SEC. 306. (a) Each hazardous substance which is Listed or desig-
nated  as  provided  in  section  101(14) of this  Act shall,  [within
ninety days after the  date of enactment of this Art]  within SO
days after the enactment of the Superfund Amendments and Reau-
thorization Act of 1986,  or  at the time of such listing or  designa-
tion, whichever is later, be listed and regulated as a hazardous ma-
terial under the Hazardous Materials Transportation Act.
  (b) A common or contract carrier shall be liable under other law
in lieu of section 107 of this  Act for damages or remedial action
resulting  from  the release of a  hazardous substance during the
course of transportation which commenced prior to the effective
date of the listing of such substance as a hazardous material under
the Hazardous Materials  Transportation Act, or for substances
listed pursuant to subsection (a) of this section, prior to the effec-
tive  date  of such listing and regulation: Provided, however,  That
this  subsection shall not apply where such a  carrier can demon-
strate that he did  not have actual knowledge of the identity or
nature of the substance released.
  (c) Section 11901 of title 49, United States Code, is amended by-
      CD redesignating subsection (h) as subsection (i);
      (2) by inserting "and subsection (h)" after "subsection (g)" in
    subsection (iX2) as  so redesignated by paragraph (1) of this sub-
    section; and
      (3) by inserting the following new subsection (h):
  "(h) A person subject to the jurisdiction of the Commission under
subchapter II of  chapter  105 of this title, or  an officer, agent, or
employee of that person, and who is required  to comply with sec-
tion  10921 of this title but does not so  comply with respect to the
transportation of hazardous wastes as defined by the Environmen-
tal Protection Agency  pursuant to section 3001 of the Solid Waste
Disposal Act (but not including any waste the  regulation of which
under the Solid  Waste Disposal  Act has been suspended  by Con-
gress) shall, in any action brought by the Commission, be  liable to
the United States for a civil penalty not to exceed $20,000  for each
violation.".

            ASSISTANT ADMINISTRATOR FOR SOLID WASTE

  SEC. 307. (a) Section  2001  of  the Solid Waste Disposal Act  is
amended by striking out "a Deputy Assistant" and inserting in lieu
thereof "an Assistant".
  (b) The Assistant Administrator of the Environmental  Protection
Agency appointed to head the Office of Solid Waste shall be in ad-
dition to the five Assistant Administrators of the Environmental
Protection Agency provided for  in section  l(d)  of Reorganization
Plan Numbered 3 of 1970 and the additional Assistant Administra-
tor provided by the Toxic Substances Control Act, shall be appoint-
ed by the President by and  with the advice  and consent  of the
Senate, and shall be compensated at the rate provided for Level IV
of the Executive Schedule pay rates under section 5315 of title 5,
United States Code.
   (c) The amendment made by subsection (a) shall become  effective
ninety days after the date of the enactment of this Art.

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                              126

                         SEPARABILITY

  S«c. 308. If any provision of this Act, or the application of any
provision of this Act to any person or circumstance, is held invalid,
the application of such provision to other persons or circumstances
and trie remainder of this Act shall not be affected thereby. If an
administrative settlement under section 122 has the effect of limit-
ing any person's right to obtain contribution from any party to such
settlement, and  if the effect of such limitation  would constitute  a
taking without just compensation  in  violation  of the fifth amend-
ment  of the Constitution of the United States, such person shall not
be entitled, under other laws of the United States, to recover com-
pensation from the United States for such  taking, but in any such
case,  such  limitation on the right  to  obtain contribution shall be
treated as having no force and effect.
SEC 309. ACTIONS UNDER STATE LA W FOR DAMAGES FROM EXPOSURE TO
           HAZARDOUS SUBSTANCES.
  (a)  STATE STATUTES OF LIMITATIONS FOR HAZARDOUS SUBSTANCE
CASES.—
      (1) EXCEPTION TO STATE STATUTES.—In the case of any action
    brought under State law for personal injury, or property dam-
    ages, which are caused or contributed to oy exposure to any haz-
    ardous substance, or pollutant or contaminant, released into the
    environment from a facility, if the applicable limitations period
    for such action (as specified in the State statute of limitations
    or under common law) provides a commencement date which  is
    earlier than the federally required  commencement date,  such
    period shall commence at the federally required commencement
    date in lieu of the date specified in such State statute.
      (2) STATE LAW GENERALLY APPLICABLE.—Except as provided
    in paragraph (1), the statute  of  limitations established  under
    State law shall apply in all actions brought under State law for
    personal injury, or property damages, which are caused or con-
    tributed to by exposure to any hazardous substance, or pollutant
    or contaminant, released into the environment from a facility.
      (3)  ACTIONS UNDER  SECTION  10?.—Nothing in  this  section
    shall apply with respect to any cause  of action brought under
    section 107 of this Act.
  (b)  DEFINITIONS.—As used in this section—
      (1) TITLE  I TERMS.—The terms used in this section shall have
    the same meaning as when used in title I of this Act.
      (2)  APPLICABLE LIMITATIONS PERIOD.—The  term  "applicable
    limitations  period" means the period specified in a statute  of
    limitations  during which a civil action referred to in subsection
    (aXD may be brought.
      (3)  COMMENCEMENT  DATE.—The term  "commencement date"
    means the date specified in a statute of limitations as the be-
    ginning of the applicable limitations period.
       (4) FEDERALLY REQUIRED COMMENCEMENT DATE.—
           (A) IN GENERAL.—Except as  provided  in subparagraph
        (B},  the  term   "federally  required commencement  date"
        means  the date the plaintiff knew (or reasonably should
        have known) that the personal injury  or property damages
        referred to in subsection (aXD were caused or contributed to

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        by the hazardous substance or pollutant or contaminant
        concerned.
          (B) SPECIAL RULES.—In the case of a minor or incompe-
        tent plaintiff, the term "federally required commencement
        date  means the later of the date  referred to in subpara-
        graph (A) or the following:
              (i) In the case of a minor, the date on which the
            minor  reaches  the age  of majority,  as determined by
            State law, or has a legal representative appointed.
              (ii) In the case of an  incompetent individual, the
            date on which such individual becomes competent or
            has had a legal representative appointed.
SEC. 310. CITIZENS SUITS.
  (a) AUTHORITY TO BRING  CIVIL ACTIONS.—Except as provided in
subsections (d) and  (e) of this section and in section 113(h) (relating
to timing of judicial  review),  any person  may  commence a  civil
action on his own behalf—
      (1) against any person (including the United States and any
    other governmental instrumentality or agency, to the extent per-
    mitted by the eleventh amendment to the Constitution) who is
    alleged to be  in violation of any standard, regulation, condition,
    requirement,  or order which has  become effective pursuant to
    this Act (including any provision of an agreement under section
    120, relating to Federal facilities); or
      (2) against the President or any other officer of the United
    States (including the Administrator of the Environmental Pro-
    tection Agency and  the Administrator of the ATSDR) where
    there is alleged a failure of the  President or of such other offi-
    cer to perform any act or duty under this Act,  including an act
    or duty under section 120 (relating to Federal facilities), which
    is not discretionary with the President or such other officer.
Paragraph (2) shall not apply to any act or duty  under the provi-
sions of section 311 (relating to research, development, and demon-
stration).
  (b) VENUE.—
      (1) ACTIONS UNDER SUBSECTION (a)
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                              128

          (A) The President.
          (B) The State in which the alleged violation occurs.
          (C) Any alleged violator of the standard, regulation, con-
        dition, requirement, or order concerned (including any pro-
        vision of an agreement under section 120).
    Notice under this paragraph shall be given in such manner as
    the President shall prescribe by regulation.
      (2)  DILIGENT PROSECUTION.—No  action  may  be  commenced
    under paragraph (1) of subsection (a) if the President has com-
    menced and is diligently prosecuting an action under this Act,
    or under the Solid  Waste Disposal Act to require compliance
    with  the standard,  regulation,  condition, requirement,  or order
    concerned (including any provision of an agreement under sec-
    tion 120).
  (e) RULES APPLICABLE TO SUBSECTION (a)(2) ACTIONS.—No action
may be commenced under paragraph (2) of subsection (a) before the
60th day  following the date on which  the plaintiff gives notice to
the Administrator or other department, agency, or instrumentality
that the plaintiff will commence such action. Notice under this sub-
section shall be given  in such manner as the President shall pre-
scribe by regulation.
  (f) COSTS.—The court, in issuing any final  order  in  any action
brought pursuant to this section, may award costs of litigation (in-
cluding reasonable attorney and expert witness fees)  to the prevail-
ing or the substantially prevailing party  whenever the court deter-
mines such an award is appropriate. The court may,  if a temporary
restraining order or preliminary injunction is sought, require  the
filing of a bond or equivalent security in accordance with the Feder-
al Rules of Civil Procedure.
  (g) INTERVENTION.—In any action under  this section,  the United
States or the State, or both, if not a party may intervene as a matter
of right. For other provisions regarding intervention, see section 113.
  (h) OTHER RIGHTS.—This Act does not affect or otherwise impair
the  rights of any person under Federal,  State,  or  common  law,
except with  respect to the timing of review as provided in section
113(h) or as otherwise provided in  section  309 (relating to actions
under State law).
  (i) DEFINITIONS.—The terms used in this section shall have the
same meanings as when used in title I.
SEC. 311. RESEARCH, DEVELOPMENT, AND DEMONSTRATION.
  (a) HAZARDOUS SUBSTANCE RESEARCH AND TRAINING.—
      (1) AUTHORITIES OF SECRETARY.—The Secretary of Health and
    Human  Services  (hereinafter in this subsection  referred to as
     the Secretary), in consultation with the Administrator, shall es-
     tablish  and support a basic  research  and training program
     (through grants, cooperative agreements, and contracts) consist-
     ing of the following:
           (A) Basic research (including epidemiologic and ecologic
        studies) which may include each of the following:
              (i) Advanced techniques for the detection,  assessment,
             and evaluation of the effects on human  health of haz-
             ardous substances.

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          (ii) Methods to assess the risks to human health pre-
        sented by hazardous substances.
          (Hi) Methods and technologies  to detect  hazardous
        substances  in the environment and basic  biological,
        chemical, and physical methods to reduce the amount
        and toxicity of hazardous substances.
      (B) Training, which may include each of the following:
          (i) Short  courses and continuing education for State
        and  local  health  and  environment agency personnel
        and other personnel engaged in the handling of haz-
        ardous substances, in the management of facilities at
        which  hazardous  substances are  located, and  in  the
        evaluation  of the  hazards  to human health presented
        by such facilities.
          (ii) Graduate or advanced training in environmental
        and occupational health and safety and in the public
        health and engineering aspects of hazardous waste con-
        trol.
          (Hi) Graduate training in the geosciences, including
        hydrogeology,  geological engineering,  geophysics, geo-
        chemistry, and related fields necessary to meet profes-
        sional personnel needs in the public and private sectors
        and to effectuate the purposes of this Act.
  (2) DIRECTOR OF NiEHS.—The Director of the National Insti-
tute for  Environmental Health Sciences  shall cooperate fully
with the relevant Federal agencies  referred to in subparagraph
(A) of paragraph (5) in carrying out the purposes of this section.
  (3) RECIPIENTS OF GRANTS, ETC.—A grant, cooperative agree-
ment, or contract may be made or entered  into under paragraph
(1) with an accredited institution of higher education. The insti-
tution  may carry out the  research or training under the grant,
cooperative agreement, or contract through contracts, including
contracts with any of the following:
      (A) Generators of hazardous wastes.
      (B) Persons involved in  the detection, assessment, evalua-
    tion, and treatment of hazardous substances.
      (C) Owners and operators of facilities at which hazardous
    substances are located.
      (D) State and local governments.
  (4) PROCEDURES.—In making grants and entering into  cooper-
ative agreements and contracts under this subsection, the Secre-
tary shall act through the Director of the National Institute for
Environmental Health Sciences. In  considering the allocation of
funds  for training purposes, the Director  shall ensure that at
least one grant, cooperative  agreement,  or contract  shall be
awarded for training described in  each of clauses (i), (ii),  and
(Hi) of paragraph  (1XB).  Where applicable, the Director may
choose to operate training activities in cooperation with  the Di-
rector  of the  National Institute for Occupational Safety  and
Health.  The  procedures applicable to grants and  contracts
under title IV of the Public Health Service Act shall be fol-
lowed under this subsection.
   (5) ADVISORY COUNCIL.—To  assist in the implementation of
this subsection and to aid in the coordination of research  and

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    demonstration and training activities funded from the Fund
    under this section, the Secretary shall appoint an advisory
    council (hereinafter in this subsection referred to as the "Advi-
    sory Council") which shall consist of representatives of the fol-
    lowing:
          (A) The relevant Federal agencies.
          (B) The chemical industry.
          (C) The toxic waste management industry.
          (D) Institutions of higher education.
          (E) State and local health and environmental agencies.
          (F) The general public.
      (6) PLANNING.—Within nine months after the date of the en-
    actment of this subsection, the Secretary, acting through the Di-
    rector of the  National Institute for Environmental Health Sci-
    ences, shall issue a plan for  the implementation of paragraph
    (1).  The plan shall include priorities for actions under para-
    graph (1) and include research and training relevant to scientif-
    ic and technological issues resultingfrom site specific hazard-
    ous substance response experience. The Secretary shall, to the
    maximum extent practicable, take appropriate steps to coordi-
    nate program activities  under this plan with the activities of
    other Federal agencies  in  order to avoid duplication of effort.
    The plan shall be  consistent with the need for the development
    of new technologies for meeting the goals of response actions in
    accordance with  the provisions of this Act.  The Advisory Coun-
    cil shall be provided an opportunity to review and comment on
    the plan  and priorities and assist appropriate coordination
    among the relevant Federal agencies  referred to  in subpara-
    graph (A) of paragraph (5).
  (b) ALTERNATIVE OR INNOVATIVE  TREATMENT  TECHNOLOGY  RE-
SEARCH AND DEMONSTRATION PROGRAM.—
      (1) ESTABLISHMENT.—The Administrator is authorized and
    directed to carry out a program of research, evaluation,  testing,
    development,  and  demonstration of alternative or innovative
    treatment technologies (hereinafter in this subsection referred to
    as the "program"} which may be utilized in response actions to
    achieve more permanent protection of human health and wel-
    fare and the environment.
      (2) ADMINISTRATION.—The program shall be administered by
    the Administrator, acting through an office of technology dem-
    onstration and shall be coordinated with programs  carried out
    by the Office of Solid Waste  and Emergency  Response and the
    Office of Research  and Development.
      (3)  CONTRACTS AND GRANTS.—In carrying  out  the program,
    the Administrator is authorized to enter into contracts and co-
    operative agreements with, and make grants to, persons, public
    entities, and  nonprofit private entities which are exempt from
    tax under section SOKcXS) of the Internal Revenue Code of 1954.
    The Administrator shall, to the maximum extent possible, enter
    into appropriate cost sharing arrangements under  this subsec-
    tion.
      (4) USE  OF  SITES.—In carrying out the program, the Adminis-
    trator may arrange for the use of sites at which a response may
    be undertaken under section 104 for the purposes of carrying out

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research,  testing, evaluation,  development,  and  demonstration
projects.  Each such project shall be carried out under such
terms  and conditions as  the Administrator shall require to
assure the protection  of human  health and the environment
and to assure adequate control by the Administrator of the re-
search, testing, evaluation, development, and demonstration ac-
tivities at the site.
  (5) DEMONSTRATION ASSISTANCE.—
       (A) PROGRAM COMPONENTS.—The demonstration assist-
    ance program shall include the following:
          (i) The publication of a solicitation and the evalua-
        tion of applications for demonstration projects utilizing
        alternative or innovative technologies.
          (ii) The selection of sites which are suitable for the
        testing and evaluation of innovative technologies.
          (Hi} The development of detailed plans for innovative
        technology demonstration projects.
          (iv)  The supervision of such  demonstration projects
        and the providing of quality assurance for data  ob-
        tained.
          (v) The evaluation  of the results of alternative  inno-
        vative technology demonstration projects and the deter-
        mination of whether or not the technologies used are
        effective and feasible.
       (B) SOLICITATION.—Within  90 days after the date of the
    enactment of this  section, and no less often than once every
    12 months thereafter, the Administrator shall publish a so-
    licitation for innovative or alternative  technologies at a
    stage of development suitable for full-scale demonstrations
    at sites  at which a response action may be undertaken
    under section 104- The purpose of any such project shall be
    to demonstrate the use of an alternative or innovative  treat-
    ment technology with respect to  hazardous substances or
    pollutants or contaminants  which are located at the site or
     which are to be  removed from the site. The solicitation
     notice shall prescribe information to be included in the ap-
    plication,  including technical and  economic data derived
    from the applicants own research and development efforts,
     and other information sufficient to permit the Administra-
     tor to assess the technology's potential and the types  of re-
     medial action to which it may be applicable.
       (C) APPLICATIONS.—Any person and any public or private
     nonprofit entity may submit an application to the Adminis-
     trator in response to the solicitation. The application shall
     contain  a proposed demonstration plan  setting  forth how
     and when  the project is to  be carried out ana such  other
     information as the Administrator may require.
       (D) PROJECT SELECTION.—In selecting  technologies  to be
     demonstrated, the Administrator shall fully review the ap-
     plications submitted and shall consider at least the criteria
     specified in paragraph (7).  The Administrator shall  select
     or refuse  to select a project  for demonstration under this
     subsection within 90 days of receiving the completed appli-
     cation for such project. In the case of a refusal to select the

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project, the Administrator shall notify the applicant within
such 90-day period of the reasons for his refusal
  (E) SITE SELECTION.—The Administrator shall propose 10
sites at which a response may be undertaken under section
104 to be the location of any demonstration project under
this subsection within 60 days after the close of the public
comment period. After an opportunity for notice and public
comment, the Administrator shall select such sites  and
projects. In selecting any such site,  the Administrator shall
take into account the applicant's technical  data and prefer-
ences either for onsite operation or for utilizing  the site as a
source of hazardous substances or pollutants  or contami-
nants to be treated offsite.
  (F) DEMONSTRATION PLAN.—Within 60 days after the se-
lection of the site under this paragraph to be the location of
a demonstration project, the Administrator shall establish
a final demonstration plan for the project, based upon the
demonstration plan contained in  the  application  for the
project. Such plan shall clearly set forth now and when the
demonstration project will be carried out.
  (G)  SUPERVISION AND  TESTING.—Each demonstration
project  under this subsection shall  be performed by  the ap-
plicant, or by a person satisfactory to the  applicant, under
the supervision  of the Administrator.  The Administrator
shall enter into a  written agreement  with each applicant
granting the Administrator the responsibility and authority
for testing procedures,  quality control,  monitoring,  and
other measurements necessary to  determine and  evaluate
the results of the demonstration project. The Administrator
may pay the costs  of testing,  monitoring, quality  control,
and other measurements required by the Administrator to
determine and evaluate the results of the demonstration
project, and the limitations established by subparagraph (J)
shall not apply to such costs.
  (H) PROJECT COMPLETION.—Each demonstration  project
under this subsection shall be completed within such  time
as is  established in the demonstration plan.
  (I)  EXTENSIONS.—The Administrator may  extend  any
deadline established  under  this  paragraph  by  mutual
agreement with the applicant concerned.
  (J) FUNDING RESTRICTIONS.—The  Administrator shall not
provide any Federal assistance for any part of a full-scale
field demonstration project under this subsection to any ap-
plicant  unless sucn  applicant can demonstrate  that it
cannot obtain appropriate private financing on reasonable
terms and conditions sufficient to carry out such demon-
stration project without such Federal assistance. The  total
Federal funds for any full-scale field demonstration project
under  this subsection  shall not exceed 50 percent of the
total cost of such project estimated at the time of the award
of  such assistance. The Administrator shall not  expend
more than $10,000,000 for assistance under the program in
any fiscal year and shall not expend more than $3,000,000
for any single project.

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  (6) FIELD DEMONSTRATIONS.—In carrying out the program, the
Administrator shall initiate or cause to be initiated at least 10
field demonstration projects of alternative or innovative treat-
ment technologies at sites at which a response may be undertak-
en under section 104, in fiscal year 1987 and each of the suc-
ceeding three fiscal years. If the Administrator determines that
10 field demonstration projects under this subsection cannot be
initiated consistent with the criteria set forth in paragraph  (7)
in any of such fiscal years,  the Administrator shall transmit to
the appropriate committees  of Congress a report explaining the
reasons for his inability to conduct such demonstration projects.
  (7) CRITERIA.—In selecting technologies to be demonstrated
under this subsection, the Administrator shall, consistent with
the protection of human health and the environment, consider
each of the following criteria:
      (A) The potential for contributing to solutions to those
    waste problems which  pose  the greatest threat  to human
    health,  which  cannot be  adequately controlled  under
    present technologies,  or which  otherwise pose significant
    management difficulties.
      (B) The availability of technologies which have been suf-
    ficiently developed for  field  demonstration and  which are
    likely to be cost-effective and reliable.
      (C) The availability  and suitability of sites for demon-
    strating such technologies, taking into account the physical,
    biological,  chemical,  and geological  characteristics of the
    sites, the  extent and type of contamination  found at the
    site,  and the capability to conduct demonstration projects
    in such a  manner as  to assure the protection  of human
    health and the environment.
      (D) The likelihood that the data to be generated from the
    demonstration project at the  site will be applicable to other
    sites.
  (8) TECHNOLOGY TRANSFER.—In carrying out the program, the
Administrator shall conduct a technology transfer program  in-
cluding  the development,  collection, evaluation,  coordination,
and dissemination  of information relating to the  utilization of
alternative or innovative treatment technologies for response ac-
tions. The Administrator shall establish and maintain  a cen-
tral reference library  for such  information. The information
maintained by the Administrator shall  be  made available to
the public,  subject  to the provisions of section 552 of title 5 of
the  United States  Code and section 1905  of title  18 of the
United States  Code, and to  other  Government  agencies in a
manner  that will facilitate its dissemination; except, that upon
a showing satisfactory to the Administrator by any person that
any information or portion thereof  obtained under this subsec-
tion by  the Administrator directly or  indirectly from such
person, would, if made public, divulge—
      (A) trade secrets; or
      (B) other proprietary  information of such person,
the Administrator  shall not disclose such information and dis-
closure thereof shall be punishable under section 1905 of title
18 of the United States Code. This subsection is not authority to

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    withhold information from Congress or any committee of Con-
    gress upon the request of the chairman of such committee.
      (9) TRAINING.—The Administrator is authorized and directed
    to carry out, through the Office of Technology demonstration, a
    program of training and an  evaluation of training needs for
    each of the following:
          (A) Training  in the procedures for the handling and re-
        moval  of hazardous substances for employees who handle
        hazardous substances.
          (B) Training  in the  management of facilities at which
        hazardous substances are located and in the evaluation of
        the hazards to  human health presented by such  facilities
        for State and local health and environment agency person-
        nel.
      (10) DEFINITION.—For purposes of this  subsection,  the  term
    "alternative or innovative treatment technologies" means those
    technologies,  including proprietary or patented methods, which
    permanently alter the composition of hazardous waste through
    chemical, biological, or physical means so  as to significantly
    reduce the toxicity,  mobility,  or volume  (or any combination
    thereof) of the  hazardous waste or contaminated materials
    being treated. The term also includes  technologies that charac-
    terize or assess the  extent of contamination, the chemical and
    physical character  of the contaminants,  and the  stresses im-
    posed by the contaminants on complex ecosystems at sites.
  (c) HAZARDOUS SUBSTANCE RESEARCH.—The Administrator may
conduct and support, through grants, cooperative agreements, and
contracts, research with respect to the detection, assessment, and
evaluation of the  effects on and risks to human health of hazardous
substances and detection of hazardous substances in the environ-
ment. The Administrator shall coordinate such research  with the
Secreta.y of Health and Human Services, acting through the adviso-
ry council established under this section, in order to avoid duplica-
tion of effort.
  (d)  UNIVERSITY HAZARDOUS SUBSTANCE RESEARCH CENTERS.—
      (1) GRANT  PROGRAM.—The  Administrator shall make grants
    to institutions of higher learning to establish and operate not
    fewer  than  5  hazardous  substance  research centers  in  the
    United States. In carrying out the program under this  subsec-
    tion, the Administrator should seek to have established and op-
    erated 10 hazardous substance research centers in  the  United
    States.
      (2) RESPONSIBILITIES  OF CENTERS.—The  responsibilities  of
    each hazardous substance research center established under this
    subsection  shall include, but not be limited to, the conduct of
    research and training relating to the manufacture, use,  trans-
    portation,  disposal, and management of hazardous substances
    and publication and dissemination of the  results of such re-
    search.
      (3) APPLICATIONS.—Any institution  of higher learning inter-
    ested in receiving a grant under this subsection shall submit to
    the Administrator an application in such form and containing
    such information as the Administrator may require by  regula-
    tion.

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                          135

  (4) SELECTION CRITERIA.—The Administrator shall select re-
cipients of grants under this subsection on the basis of the fol-
lowing criteria:
      (A) The hazardous substance research center shall be lo-
    cated in a State which is representative of the needs of the
    region in which such State is located for improved hazard-
    ous waste management.
      (B) The grant recipient shall be located in an area  which
    has experienced problems  with hazardous substance man-
    agement.
      (C) There is available to the grant recipient for carrying
    out this subsection demonstrated research resources.
      (D) The capability of the grant recipient to provide lead-
    ership in making national and  regional contributions  to
    the solution of both long-range and immediate hazardous
    substance management problems.
      (E) The grant recipient shall make a commitment to sup-
    port ongoing hazardous substance research programs with
    budgeted institutional funds of at  least $100,000 per year.
      (F) The grant recipient shall have  an  interdisciplinary
    staff with  demonstrated expertise in hazardous substance
    management and research.
      (G) The grant recipient shall have a demonstrated ability
    to disseminate results of hazardous substance research  and
    educational programs through an interdisciplinary continu-
    ing education program.
      (H) The  projects which  the grant recipient proposes  to
    carry out under the grant are necessary and appropriate.
  (5) MAINTENANCE OF EFFORT.—No grant may be made under
this subsection in any fiscal year unless the  recipient of such
grant enters  into such agreements  with the Administrator  as
the Administrator  may require to  ensure that such recipient
will maintain its aggregate expenditures from all other sources
for establishing and operating a regional hazardous substance
research center and related research  activities at or above the
average level of such expenditures in its 2 fiscal years preceding
the date of the enactment of this subsection.
  (6) FEDERAL SHARE.—The Federal share of a grant under this
subsection shall not exceed 80 percent of the costs of establish-
ing and operating the regional hazardous substance research
center and related research activities carried  out by the grant
recipient.
  (7) LIMITATION ON USE OF FUNDS.—No funds made available
to carry out this subsection shall be used for acquisition  of real
property (including buildings) or construction of any building.
  (8)  ADMINISTRATION THROUGH THE OFFICE  OF THE ADMINIS-
TRATOR.—Administrative  responsibility for carrying  out  this
subsection shall be in the Office of the Administrator.
  (9)  EQUITABLE DISTRIBUTION OF FUNDS.—The Administrator
shall allocate funds made available to carry out this subsection
equitably among the regions of the United States.
  (10) TECHNOLOGY TRANSFER ACTIVITIES.—Not  less than five
percent of the funds made available to carry out this subsection

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                              136

    for any fiscal year shall be  available to carry out technology
    transfer activities.
  (e) REPORT TO  CONGRESS.—At  the time of the submission of the
annual budget request to Congress, the Administrator shall submit
to the appropriate committees of the House of Representatives and
the Senate and to the advisory council established under subsection
(a), a report on the progress of the research, development, and dem-
onstration program authorized by subsection (b), including an eval-
uation of each demonstration project completed  in  the preceding
fiscal year, findings  with respect  to the efficacy of such  demonstrat-
ed technologies in achieving permanent and significant reductions
in risk from  hazardous  wastes,  the costs  of such demonstration
projects,  and the potential applicability of,  and projected costs for,
such technologies at  other hazardous substance sites.
  (f) SAVING PROVISION.—Nothing in this section shall be construed
to affect the provisions of the Solid Waste Disposal Act.
  (g)  SMALL  BUSINESS PARTICIPATION.—The Administrator  shall
ensure, to the maximum extent practicable, an adequate opportunity
for small business participation  in the program established by sub-
section (b).
SEC. 312. LOVE CANAL PROPERTY ACQUISITION.
  (a)  ACQUISITION   OF PROPERTY IN EMERGENCY  DECLARATION
AREA.—The Administrator of the Environmental Protection Agency
(hereinafter referred to as the "Administrator") may make grants
not to exceed $2,500,000 to  the State of New York (or  to any duly
constituted public agency or authority thereof) for purposes of acqui-
sition of private property in the Love Canal Emergency Declaration
Area. Such acquisition shall include (but shall not be limited to) all
private property within the Emergency Declaration Area, including
non-owner occupied  residential properties,  commercial, industrial,
public, religious, non-profit, and vacant properties.
  (b) PROCEDURES FOR ACQUISITION.—No property shall be acquired
pursuant to this section unless the property owner voluntarily agrees
to such acquisition.  Compensation for any property acquired pursu-
ant to this section shall  be based upon the fair market  value of the
property as it existed prior to the emergency declaration. Valuation
procedures for property acquired with funds provided under this sec-
tion shall be in accordance with those set forth in the agreement en-
tered into between the New York State Disaster Preparedness Com-
mission  and the Love Canal Revitalization Agency on October 9,
1980.
  (c) STATE OWNERSHIP.—The Administrator shall not provide any
funds under this section for the acquisition of any properties pursu-
ant to this section unless a public agency or authority of the State of
New  York first enters into a cooperative agreement with the Admin-
istrator providing assurances deemed  adequate by the  Administra-
tor that the State or an  agency created under the laws of the State
shall take title to the properties to be so acquired.
  (d) MAINTENANCE OF PROPERTY.—The Administrator shall enter
into a cooperative agreement with an appropriate public agency or
authority of the State of New York under which the Administrator
shall maintain or arrange for the maintenance of all properties
within the Emergency Declaration Area  that have been acquired by

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any public agency or authority of the State. Ninety (90) percent of
the costs of such  maintenance shall be paid by the Administrator.
The  remaining portion of such costs shall be paid  by the State
(unless a credit is available under section 104(c)). The Administrator
is authorized, in  his discretion, to provide technical  assistance to
any public agency or authority of the State of New York in order to
implement the recommendations  of the habitability and land-use
study in order to put  the land within the Emergency Declaration
Area to its best use.
  (e) HABITABILITY AND  LAND  USE STUDY.—The Administrator
shall conduct or cause to be conducted a habitability  and land-use
study. The study shall—
      (1) assess the risks associated with inhabiting of the Love
    Canal Emergency Declaration Area;
      (2) compare the  level of hazardous waste  contamination in
    that Area to that present in other comparable communities; and
      (3) assess the potential uses of the land within the Emergency
    Declaration Area,  including but not limited  to residential, in-
    dustrial,  commercial and recreational, and the risks associated
    with such potential uses.
The Administrator shall publish the findings of such study and
shall work with the State of New York to  develop recommendations
based upon the results of such study.
  (f) FUNDING.—For purposes of section 111 [and 221(c) of this Act],
the expenditures authorized by this section shall be treated as a cost
specified in section lll(c).
  (g) RESPONSE.—The provisions of this section shall  not affect the
implementation of other response actions within the Emergency Dec-
laration Area that the Administrator has determined (before enact-
ment of this  section) to be necessary to protect the public health or
welfare or the environment.
  (h) DEFINITIONS.—For purposes  of this section:
      (1) EMERGENCY  DECLARATION AREA.—The terms "Emergency
    Declaration  Area" and "Love  Canal Emergency Declaration
    Area " mean the Emergency Declaration Area as defined in sec-
    tion 950,  paragraph (z) of the General Municipal Law of the
    State of New York, Chapter 259, Laws of 1980, as in effect on
    the date  of the enactment of this section.
      (2) PRIVATE PROPERTY.—As used in subsection (a), the term
    "private  property" means all property which  is not owned by a
    department, agency, or instrumentality of—
          (A) the United States, or
          (B) the State of New York (or any public  agency or au-
        thority thereof).

              TITLE IV—POLLUTION INSURANCE

SEC. 401. DEFINITIONS.
  As used in this title—
      (1) INSURANCE.—The term  "insurance" means primary insur-
    ance, excess insurance, reinsurance, surplus lines insurance, and
    any other arrangement for shifting and distributing risk which
     is determined to be insurance under applicable State or Federal
     law.

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                              138

      (2)  POLLUTION  LIABILITY.—The  term  "pollution  liability"
    means liability for injuries arising from the release of hazard-
    ous substances or pollutants or contaminants.
      (3) RISK RETENTION GROUP.—The term "risk retention group"
    means any corporation or other limited liability association tax-
    able as a  corporation, or as an insurance company, formed
    under the laws of any State—
          (A) whose primary  activity consists  of assuming and
        spreading all,  or any portion, of the pollution liability of its
        group members;
          (B) which is organized for the primary purpose of con-
        ducting the activity described under subparagraph (A);
          (C) which is chartered or licensed as an insurance compa-
        ny and authorized to engage in  the  business of insurance
        under the laws of any State; and
          (D) which does not exclude any person from membership
        in the group solely to provide for members of such a group
        a competitive advantage over such a person.
      (4) PURCHASING GROUP.—The term "purchasinggroup" means
    any group of persons  which has as one of its purposes the pur-
    chase of pollution  liability insurance on a group basis.
      (5) STATE.—The  term "State" means any State of the  United
    States, the District of Columbia, the Commonwealth of Puerto
    Rico,  Guam, American Samoa,  the  Virgin  Islands, the Com-
    monwealth of the Northern Marianas,  and  any other territory
    or possession over which the United States has jurisdiction.
SEC. 402. STATE LA WS; SCOPE OF TITLE.
  (a) STATE LAWS.—Nothing in this title shall be construed to affect
either the tort law or the law governing the interpretation of insur-
ance contracts  of any State. The definitions of pollution liability
and pollution liability insurance under any State law shall not be
applied for the purposes of this title, including recognition or quali-
fication of risk retention groups or purchasing groups.
  (b) SCOPE OF TITLE.—The authority to offer or to provide insur-
ance under this title shall be limited to coverage of pollution liabil-
ity  risks and this title does not authorize a risk retention group or
purchasing group to provide coverage of any other line of insurance.
SEC. 403. RISK RETENTION GROUPS.
  (a) EXEMPTION.—Except as provided  in this section,  a  risk reten-
tion group shall be exempt from the following:
      (1) A State law,  rule, or order which makes unlawful, or regu-
    lates, directly  or  indirectly,  the operation  of a risk retention
    group.
      (2)  A State law, rule, or order which  requires or permits a
    risk retention group to participate in any insurance insolvency
    guaranty association to which an insurer licensed in the State
    is required to belong.
      (3)  A State law, rule, or order which requires any insurance
    policy issued to a risk retention group or  any member of the
    group to be countersigned by  an insurance agent or broker resid-
    ing in the State.
      (4)  A State law,  rule, or order which otherwise discriminates
    against a risk retention group or any  of its members.

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  (b) EXCEPTIONS.—
      (1) STATE LAWS GENERALLY APPLICABLE,—Nothing in subsec-
    tion (a) shall be construed to  affect the applicability  of State
    laws generally applicable to persons or corporations. The State
    in which a risk  retention group is chartered may regulate the
    formation and operation of the group.
      (2) STATE REGULATIONS NOT SUBJECT TO EXEMPTION.—Subsec-
    tion (a) shall not apply to any State law which requires a risk
    retention group to do any of the following:
         (A) Comply with  the unfair claim settlement practices
        law of the State.
         (B} Pay, on a nondiscriminatory basis, applicable premi-
        um and other taxes which are levied on admitted insurers
        and surplus line  insurers, brokers,  or policyholders under
        the laws of the State.
         (C) Participate, on  a nondiscriminatory  basis,  in  any
        mechanism established or authorized under the law of the
        State for the equitable apportionment  among insurers of
        pollution liability insurance losses  and expenses  incurred
        on  policies written through such mechanism.
         (D) Submit to the appropriate authority reports and other
        information  required of licensed insurers under the laws of
        a State relating solely to pollution liability insurance losses
        and expenses.
         (E) Register with and designate the State insurance com-
        missioner  as its agent solely for the purpose of receiving
        service of legal documents or process.
         (F) Furnish, upon request, such commissioner a copy of
        any financial report submitted by the risk retention group
        to  the commissioner of the chartering or licensing jurisdic-
        tion.
         (G) Submit  to  an examination by the State insurance
        commissioner in  any  State in which  the group  is doing
        business to determine the group's financial condition, if—
             (i) the commissioner has reason to believe the risk re-
            tention group is in a financially  impaired condition;
            and
             (ii) the commissioner of the jurisdiction in which the
           group is chartered has not begun or has refused to ini-
            tiate an examination of the group.
          (H) Comply with a lawful order issued in a delinquency
        proceeding commenced by the State  insurance commissioner
        if  the commissioner of the jurisdiction  in which the group
        is  chartered has  failed to initiate such a proceeding after
        notice of a finding of financial impairment under subpara-
        graph (G).
  (c)  APPLICATION OF EXEMPTIONS.—The exemptions  specified  in
subsection (a} apply to—
      (1) pollution liability insurance coverage provided by a risk
    retention group for—
          (A} such group; or
          (B} any person who is a member of such group;
      (2) the sale of pollution liability insurance coverage for a risk
    retention group; and

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      (3) the provision of insurance related services or management
    services for a risk  retention group or any  member of such a
    group.
  (d)  AGENTS OR  BROKERS.—A State may require that a person
acting, or offering to act, as an agent or broker for a risk retention
group obtain a license from that State, except that a State may not
impose  any qualification  or  requirement   which  discriminates
against a nonresident agent or broker.
SEC. 404. PURCHASING GROUPS.
  (a) EXEMPTION.—Except as provided in this section, a purchasing
group is exempt from the following:
      (1) A State law, rule, or order which prohibits the establish-
    ment of a purchasing group.
      (2) A State  law, rule, or order which makes it unlawful  for
    an insurer to  provide or offer to provide insurance on a basis
    providing,  to  a purchasing group or its  member,  advantages,
    based on their loss and expense experience, not afforded to other
    persons with respect to rates, policy forms,  coverages,  or other
    matters.
      (3) A State law, rule, or order which prohibits a purchasing
    group or its members from purchasing insurance on the group
    oasis described in paragraph (2) of this subsection.
      (4) A State law, rule, or order which prohibits a purchasing
    group from obtaining  insurance  on a group basis  because  the
    group has  not been in existence  for a minimum period of time
    or because any member has not belonged to the group for a min-
    imum period of time.
      (5) A State law, rule, or order  which requires that a purchas-
    ing group must have a minimum number of members, common
    ownership or affiliation, or a certain legal form.
      (6) A State  law, rule, or order which requires that a certain
    percentage of a purchasing group must obtain insurance on a
    group basis.
      (7) A State law, rule, or order which requires that any insur-
    ance policy issued to a purchasing group or any members of the
    group be countersigned by an insurance agent or broker residing
    in that State.
      (8) A State  law, rule, or order which otherwise discriminate
    against a purchasing group or any of its members.
  (b)  APPLICATION OF EXEMPTIONS.—The exemptions  specified  in
subsection (a) apply to the following:
      (1) Pollution liability  insurance,  and  comprehensive general
    liability insurance which includes  this coverage, provided to—
          (A) a purchasing group; or
          (B) any person who is a member of a purchasing group.
      (2) The sale of any one of the following to  a purchasing group
    or a member of the group:
          (A) Pollution  liability insurance and  comprehensive gen-
        eral liability coverage.
          (B) Insurance related services.
          (C) Management services.
  (c)  AGENTS  OR  BROKERS.—A State  may  require that  a person
acting, or  offering to act,  as an agent or broker for a purchasing

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group obtain a license from that State, except that a State may not
impose  any qualification  or requirement   which  discriminates
against a nonresident agent or broker.
SEC. 405. APPLICABILITY OF SECURITIES LA WS.
  (a) OWNERSHIP INTERESTS.—The ownership interests of members
of a risk retention group shall be considered to be—
      (1) exempted securities for purposes of section 5 of the Securi-
    ties Act of 1933 and for purposes of section 12 of the Securities
    Exchange Act of 1934; and
      (2) securities for purposes of the provisions of section 17 of the
    Securities Act of 1933 and the provisions of section 10 of the Se-
    curities Exchange Act of 1934.
  (b) INVESTMENT COMPANY ACT.—A risk retention group shall not
be considered to be an investment company for purposes of the In-
vestment Company Act of 1940 (15 U.S.C. 80a-l et seqj.
  (c) BLUE SKY LAW.—The ownership interests of members in a risk
retention group shall  not be considered securities for purposes of any
State blue sky law.

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PROVISIONS OF THE SUPERFUND AMENDMENTS AND RE-
  AUTHORIZATION ACT  OF  1986 (P.L.  99-499)  WHICH DO
  NOT AMEND PUBLIC LAW 96-510 (CERCLA)
SEC. 118. MISCELLANEOUS PROVISIONS.
  (b) REMOVAL AND TEMPORARY STORAGE OF CONTAINERS OF RADON
CONTAMINATED SOIL.—Not later than 90 days after the enactment
of this Act, the Administrator shall make a grant of $7,500,000 to
the State of New Jersey for transportation from residential  areas
in the State of New Jersey and temporary storage of approximately
14,000 containers of radon contaminated soil which is the subject of
a remedial action for which a remedial  investigation and feasibility
study has been initiated before  such date. Such containers shall be
transported to and temporarily stored  at any site in the State of
New Jersey designated by the Governor of such State. For purposes
of section  lll(a) of CERCLA, the grant under this subsection for
transportation and storage of such containers shall be treated as
payment of governmental response cost incurred  pursuant to  sec-
tion 104 of CERCLA.
  (c)  UNCONSOUDATED  QUATERNARY  AQUIFER.—Notwithstanding
any other provision of law, no person may—
      (1) locate or authorize the  location of a landfill, surface im-
    poundment, waste pile, injection well, or land treatment  facili-
    ty over the Unconsolidated  Quaternary  Aquifer,  or the  re-
    charge zone or streamflow source  zone of such aquifer, in the
    Rockaway River Basin, New  Jersey (as such aquifer and zones
    are described in the Federal  Register, January 24,  1984,  pages
    2946-2948); or
      (2) place or authorize the placement of solid waste in a land-
    fill, surface  impoundment, waste  pile, injection  well, or land
    treatment facility over such aquifer or zone.
This subsection may be enforced under sections 309  (a) and (b) of
the Federal Water Pollution Control Act.  For purposes of section
309(c) of such Act, a violation of this subsection shall be considered
a violation of section 301 of such Act.
  (d) STUDY OF SHORTAGES OF SKILLED  PERSONNEL.—The Comptrol-
ler General shall study the problem of shortages  of skilled person-
nel in the Environmental Protection Agency to carry out response
actions under CERCLA. In particular the  Comptroller General
shall study—
      (1) the types of skilled personnel needed for response actions
     for which there are shortages in the Environmental Protection
     Agency,
      (2) the extent of such shortages,
                             (143)

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      (3) pay differential between the public and private sectors for
    the skilled positions involved in response actions,
      (4) the extent to which skilled personnel of Federal and State
    governments involved in response actions  are leaving their po-
    sitions for employment in the private sector,
      (5) the success of programs of the Department of Defense and
    the Office of Personnel Management in retaining skilled per-
    sonnel, and
      (6) the types of training required to improve the skills of em-
    ployees carrying out response actions.
The Comptroller General shall complete the study required by this
subsection and submit a report on the results thereof to Congress
not later than July 1, 1987.
  (e)  STATE REQUIREMENTS NOT  APPLICABLE  TO CERTAIN  TRANS-
FERS.—No State or local requirement shall apply to the transfer
and disposal  of any  hazardous  substance or pollutant or contami-
nant  from  a  facility at which a release or threatened release has
occurred to a facility for which  a final permit  under section 3005(a)
of the Solid Waste Disposal Act is in effect if the following condi-
tions  apply—
      (1) Such permit was issued  after January 1, 1983, and before
    November 1, 1984.
      (2) The transfer and  disposal is carried out pursuant to a co-
    operative agreement between the Administrator and the State.
      (3) The facility at which the  release or threatened release
    has occurred is identified as the McColl Site in Fullerton, Cali-
    fornia.
The terms used in this  section shall have the same meaning as
when used in title I of CERCLA.
  (f) STUDY OF LEAD POISONING IN CHILDREN.—(1) The Administra-
tor of the Agency for Toxic Substances and Disease Registry shall,
in consultation with the Administrator of the Environmental Pro-
tection Agency and  other  officials as appropriate,  not later than
March 1, 1987, submit to the Congress, a report on the nature and
extent of lead poisoning in children from environmental sources.
Such  report  shall include, at  a minimum,  the following informa-
tion—
      (A) an estimate of the total number of  children, arrayed ac-
    cording to Standard Metropolitan Statistical Area or other ap-
    propriate geographic unit, exposed to environmental sources of
    lead at concentrations sufficient to cause adverse  health  ef-
    fects;
      (B) an estimate of the total number of children exposed to
    environmental sources of lead arrayed according to source or
    source types;
      (C) a statement of the  long  term consequences  for  public
    health of unabated exposures to environmental sources of lead
    and including but not limited to, diminution in intelligence, in-
    creases in morbidity and mortality; and
      (D) methods  and alternatives available for  reducing expo-
    sures of children to environmental sources of lead.
  (2)  Such report shall  also score  and evaluate specific  sites at
which children are known to be exposed  to environmental sources

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of lead due to releases, utilizing the Hazard Ranking system of the
National Priorities List.
  (3) The costs of preparing and submitting the report required by
this section shall be borne by the Hazardous Substance  Superfund
established under subchapter A of chapter 98 of Internal Revenue
Code of 1954.
  (g) FEDERALLY LICENSED DAM.—For purposes of CERCLA  in the
case  of the Milltown Dam in  the State of Montana licensed under
part  1  of the Federal Power  Act and designated as FERC license
number 2543-004, if a hazardous substance, pollutant, or contami-
nant—
      (1) has been released into the environment upstream of the
    dam, and
      (2) has subsequently come to be located in the reservoir cre-
    ated by such dam
notwithstanding section 101(20) of such Act, the term "owner or op-
erator" does not include the owner or operator of the dam unless
such owner or operator is a  person who would otherwise be liable
for such release or  threatened release under section 107 of such
Act.
  (h) COMMUNITY RELOCATION AT TIMES BEACH SITE.—For purposes
of any Missouri dioxon site at which a temporary or permanent re-
location decision has been made, or is under active consideration,
by the Administrator as  of the enactment of this  Act, the terms
"remove"  and  "removal" as used in CERCLA shall be  deemed to
include  the costs of permanent relocation of resiidents where it is
determined that such permanent relocation is cost effective or may
be necessary to protect health or welfare. In  the case of a business
located in an area of evacuation or relocation at such facility, such
terms may also include the payment of those  installments of princi-
pal and interest on business debt which accrue between  the date of
evacuation or temporary  relocation and 30 days following the date
that permanent relocation is actually accomplished  or, if perma-
nent relocation is formally  rejected as  the  appropriate response,
the date on which  evacuation or temporary relocation ceases.  In
the case of an individual unemployed as a result of such evacuation
or relocation, such terms may also include the provision of assist-
ance identical to that authorized by sections 407, 408,  and 409 of
the Disaster Relief Act of 1974; except that the costs of such assist-
ance shall be paid from the Trust Fund established under amend-
ments made to the Internal Revenue Code of 1954 by this Act. Sec-
tion 104
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                            146

      nant from the facility at which the release or threatened
      release occurs to an offsite facility.
        (B)  REMEDIAL ACTION.—The  remedial  action  provides
      each of the following:
            (i) Changes in the character or composition  of the
          hazardous substance or pollutant  or contaminant con-
          cerned so that  it no longer  presents  a risk to  public
          health.
            (ii) Protection against  accidental emissions during
          operation.
            (iii) Protection of public health considering the mul-
          timedia impacts of the treatment process.
        (C)  PUBLIC PARTICIPATION,—The  State  provides  proce-
      dures for public  participation   regarding the  response
      action which are at least equivalent to the level of public
      participation  procedures applicable  under CERCLA and
      under the Solid Waste Disposal Act.
    (2) EFFECT OF  WAIVER.—The waiver of  any permit require-
  ment under this subsection shall not be construed to waive any
  standard or level of control which—
        (A) is applicable to any hazardous substance or pollutant
      or contaminant involved in the remedial action; and
        (B) would otherwise be contained in the permit.
  Such waiver of any permit requirement under subtitle C of the
  Solid Waste Disposal Act shall only  apply to the extent that
  the facility or remedial action involves the onsite  treatment
  with a mobile incineration unit of waste present at such site.
  The waiver shall not apply to any other regulated or potential-
  ly regulated activity, including the use of the mobile inciner-
  ation unit for actions not authorized by the State.
    (3) EXPIRATION OF AUTHORITY.—The authority of this subsec-
  tion  shall terminate at the end  of 3 years, unless the State
  demonstrates, to the satisfaction of the Administrator, that the
  operation of mobile incinerators  in the State  has sufficiently
  protected public  health  and the environment and is consistent
  with the criteria required for a permit under  subtitle C of the
  Solid Waste Disposal Act.
(j) STUDY OF JOINT USE OF  TRUCKS.—
    (1) STUDY.—The Administrator, in consultation with the Sec-
  retary of Transportation, shall conduct a study of problems as-
  sociated with the use of any vehicle for  purposes  other than
  the transportation of hazardous substances when that vehicle
  is used at other times for the transportation of hazardous sub-
  stances. At a minimum, the Administrator shall consider—
        (A) whether such joint use of vehicles should be prohibit-
      ed, and
        (B) whether,  if such joint  use  is permitted, special safe-
      guards should  be  taken  to  minimize threats to  public
      health and the  environment.
    (2) REPORT.—The Administrator shall submit a report, along
  with recommendations,  to Congress on the results of the study
  conducted under paragraph (1) not later  than 180 days after
  the date of the enactment of this Act.
(k) RADON ASSESSMENT AND MITIGATION.—

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                             147

     (1) NATIONAL ASSESSMENT OF RADON GAS.—No later than one
   year after the enactment of this Act,  the Administrator shall
   submit to the Congress a report which shall, to the extent pos-
   sible—
         (A) identify the locations in the United States where
       radon is found in structures where people normally live or
       work, including educational institutions;
         (B) assess the levels of radon gas that are present  in
       such structures;
         (C) determine  the level of radon gas and radon daugh-
       ters  which poses a threat to human health and assess for
       each location identified under subparagraph (A) the extent
       of the threat to human health;
         (D) determine methods of reducing or eliminating the
       threat to human health of radon gas and radon daughters;
       and
         (E) include guidance and public information materials
       based on the findings or research of mitigating radon.
     (2) RADON MITIGATION DEMONSTRATION PROGRAM.—
         (A) DEMONSTRATION PROGRAM.—The Administrator shall
       conduct a  demonstration  program to  test methods and
       technologies  of  reducing  or  eliminating  radon gas and
       radon daughters where it poses a threat to human health.
       The  Administrator shall take into consideration any dem-
       onstration  program underway in  the  Reading Prong of
       Pennsylvania, New Jersey, and New York and at other
       sites prior  to  enactment. The  demonstration  program
       under  this  section shall  be  conducted in  the  Reading
       Prong, and at such other sites as the Administrator consid-
       ers appropriate.
         (B) ANNUAL REPORTS.—The  Administrator shall submit
       annual reports not later than February 1 of each year (be-
       ginning February 1, 1987) on the status of the demonstra-
       tion program carried out under this subsection and on any
       such demonstration program initiated prior to enactment.
         (C) LIABILITY.—Liability,  if any, for persons undertaking
       activities pursuant to the radon mitigation demonstration
       program authorized under this subsection shall be deter-
       mined under principles of existing law.
     (3)  CONSTRUCTION OP SECTION.—Nothing in this subsection
    shall be construed to authorize the Administrator to carry out
    any regulatory  program or any activity other than research,
    development, and related reporting, information dissemination,
    and coordination activities specified in this subsection. Nothing
    in paragraph (1) or (2) shall be construed to limit the authority
    of the Administrator or of any other agency or instrumentality
    of the United States under any other authority of law.
  (1) GULF COAST HAZARDOUS SUBSTANCE RESEARCH, DEVELOPMENT,
AND DEMONSTRATION CENTER.—
     (1)  ESTABLISHMENT OF HAZARDOUS SUBSTANCE RESEARCH,  DE-
    VELOPMENT, AND DEMONSTRATION CENTER.—The Administrator
    shall establish  a hazardous substance research,  development,
    and demonstration  center (hereinafter in this subsection re-
    ferred to as the "Center") for the purpose of conducting re-

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    search to aid in more  effective hazardous substance response
    and waste management throughout the Gulf Coast.
      (2) PURPOSES OF THE  CENTER.—The Center shall carry out a
    program  of research,  evaluation, testing, development,  and
    demonstration of alternative or innovative technologies which
    may be utilized  in response actions or in normal handling of
    hazardous wastes to achieve better protection of human health
    and the environment.
      (3) OPERATION  OF CENTER.—(A) For purposes of operating the
    Center, the Administrator is authorized to enter  into contracts
    and cooperative  agreements with, and make grants to, a  uni-
    versity related  institute involved with  the improvement of
    waste management. Such institute shall be located in Jefferson
    County, Texas.
      (B) The Center shall be  authorized to make grants, accept
    contributions, and  enter into agreements with universities lo-
    cated in the States of Texas, Louisiana, Mississippi, Alabama,
    and Florida in order to carry out the purposes of the Center.
      (4) AUTHORIZATION OF APPROPRIATIONS.—There are author-
    ized  to be appropriated to the  Administrator for purposes of
    carrying  out this subsection for  fiscal years beginning  after
    September 30, 1986, not more than $5,000,000.
  (m) RADON PROTECTION AT CURRENT  NATIONAL PRIORITIES  LIST
SITES.—It is the sense of the Congress that the President, in select-
ing response action for  facilities included on the National Priorities
List published under section 105 of  the Comprehensive Environ-
mental Response, Compensation, and  Liability Act of 1980 because
of the presence of radon, is not required by statute  or regulations
to use fully demonstrated methods, particularly those involving the
offsite transport and disposition of contaminated  material, but  may
use innovative or alternative methods which protect  human health
and the environment in a more cost-effective manner.
  (n) SPILL CONTROL TECHNOLOGY.—
      (1) ESTABLISHMENT OF PROGRAM.—Within  180  days of enact-
    ment of this subsection, the Secretary of the United States De-
    partment of Energy is  directed  to carry out  a program of test-
    ing and evaluation of technologies which may be utilized in re-
    sponding to liquefied gaseous and other hazardous substance
    spills at the Liquefied Gaseous Fuels  Spill  Test Facility  that
    threaten public health  or the environment.
      (2) TECHNOLOGY TRANSFER.—In  carrying out the program es-
    tablished under this subsection, the Secretary shall conduct a
    technology transfer program that, at a minimum—
          (A) documents and archives spill control technology;
          (B) investigates and analyzes significant hazardous  spill
        incidents;
          (C)  develops and provides generic  emergency  action
        plans;
          (D) documents and archives spill test results;
          (E) develops emergency action plans to respond to spills;
          (F) conducts training of spill response  personnel; and
          (G) establishes safety standards for personnel engaged in
        spill response activities.

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                             149

      (3) CONTRACTS AND GRANTS.—The  Secretary  is directed  to
    enter into contracts and grants with a nonprofit organization
    in Albany County, Wyoming, that is capable of providing the
    necessary technical support and which is involved in environ-
    mental activities related to such hazardous substance related
    emergencies.
      (4) USE OF SITE.—The Secretary shall arrange for the use of
    the  Liquefied Gaseous Fuels Spill Test Facility to carry out the
    provisions of this subsection.
  (o) PACIFIC NORTHWEST  HAZARDOUS SUBSTANCE RESEARCH, DEVEL-
OPMENT, AND DEMONSTRATION CENTER.—
      (1) ESTABLISHMENT.—The  Administrator shall  establish a
    hazardous substance research,  development,  and demonstra-
    tion center (hereinafter in this subsection referred to  as the
    "Center")  for the  purpose of conducting research  to  aid  in
    more effective  hazardous  substance response in the Pacific
    Northwest.
      (2) PURPOSES OF CENTER.—The Center shall carry out a pro-
    gram of research, evaluation, testing, development, and demon-
    stration of alternative or innovative technologies which may be
    utilized in response actions to achieve more permanent protec-
    tion of  human health and welfare and the environment.
      (3) OPERATION OF CENTER.—
         (A) NONPROFIT ENTITY.—For the purposes of operating
        the Center, the Administrator is authorized to enter into
        contracts and cooperative  agreements  with,  and  make
        grants to, a nonprofit private entity  as defined in section
        [201(i) of Public  Law  96-517 Citation Not Correct] which
        entity shall agree to provide the basic technical and man-
        agement personnel. Such nonprofit  private  entity  shall
        also agree to provide at least two permanent research  fa-
        cilities, one of which  shall be located in Benton County,
        Washington, and one of which shall be located in Clallam
        County, Washington.
         (B)  AUTHORITIES.—The Center shall be authorized  to
        make grants, accept contributions, and enter into agree-
        ments with universities  located in the States of Washing-
        ton, Oregon, Idaho, and Montana in order to carry out the
        purposes of the Center.
      (4) HAZARDOUS WASTE RESEARCH AT THE HANFORD SITE.—
          (A) INTERAGENCY AGREEMENTS.—The Administrator and
        the Secretary of Energy are authorized to enter into inter-
        agency agreements with one another for the purpose of
        providing  for  research,  evaluation, testing, development,
        and demonstration into alternative or innovative technol-
        ogies to characterize and assess the  nature and extent of
        hazardous waste (including radioactive mixed waste) con-
        tamination at the Hanford site, in the State of Washing-
        ton.
          (B) FUNDING.—There is authorized to be appropriated to
        the Secretary of Energy for purposes of carrying out this
        paragraph  for fiscal years beginning after September 30,
        1986, not  more than $5,000,000. All sums  appropriated
        under this  subparagrapn shall be provided to the Adminis-

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        trator by the Secretary of Energy, pursuant to the inter-
        agency agreement  entered into under subparagraph (A),
        for the purpose of the Administrator entering into con-
        tracts and  cooperative  agreements  with,  and making
        grants to,  the Center in order to  carry out the research,
        evaluation, testing,  development,  and demonstration de-
        scribed in paragraph (1).
      (5) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
    to be appropriated to the Administrator for purposes of carry-
    ing out this subsection (other than paragraph (4))  for fiscal
    years  beginning  after  September 30,  1986,  not more  than
    $5,000,000.
  (p) SILVER CREEK TAILINGS.—Effective with the date of enactment
of this Act, the facility listed in Group 7 in EPA National Priorities
List Update #4  (50  Federal Register 37956, September  18, 1985),
the site in Park City, Utah, which is  located on tailings from non-
coal mining operations, shall be deemed removed from the list of
sites recommended for inclusion on  the National Priorities Last,
unless the President  determines upon site specific  data not used in
the proposed listing of such facility, that the facility meets require-
ments of the Hazard Ranking System or any revised Hazard Rank-
ing System.
SEC. 120. FEDERAL FACILITIES.
       *******
  (b)  LIMITED GRANDFATHER.—Section  120  of CERCLA  shall not
apply to any response action or remedial action for which a plan is
under development by the Department of Energy on the date of en-
actment of this Act with respect to facilities—
      (1) owned or  operated by the United States and subject to the
    jurisdiction of such Department;
      (2) located  in St. Charles and St. Louis counties, Missouri, or
    the city of St. Louis, Missouri, and
      (3) published in the National Priorities List.
In preparing such plans, the Secretary of Energy shall consult with
the Administrator of the Environmental Protection Agency.
SEC. 121. CLEANUP STANDARDS.
       *******
  (b) EFFECTIVE DATE.—With respect to section 121 of CERCLA, as
added by this section—
      (1) The requirements of section 121 of CERCLA shall not
    apply to any remedial action for  which the Record of Decision
    (hereinafter  in this section  referred  to as the  "ROD") was
    signed, or the  consent decree was lodged, before date of enact-
    ment.
      (2) If the  ROD was  signed, or the consent decree lodged,
    within the 30-day period immediately following enactment of
    the Act,  the Administrator shall certify  in  writing that the
    portion of the  remedial action covered by the ROD or consent
    decree complies  to the maximum extent practicable with sec-
    tion 121 of CERCLA.
Any ROD signed before enactment of this Act and reopened after
enactment of this  Act to modify or  supplement  the selection of

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remedy shall  be  subject to the  requirements  of section 121  of
CERCLA.
SEC. 124. METHANE RECOVERY.
  (b) REGULATION UNDER THE SOLID WASTE DISPOSAL ACT.—Unless
the Administrator of the Environmental Protection Agency pro-
mulgates regulations under subtitle C of the Solid Waste Disposal
Act addressing the extraction of wastes from landfills as part of the
process of recovering methane from such landfills, the owner and
operator  of equipment used to recover methane from  a landfill
shall  not be deemed to be managing, generating, transporting,
treating,  storing, or disposing of hazardous or liquid wastes within
the meaning of that subtitle. If the aqueous or hydrocarbon phase
of the condensate or any other waste material removed from the
gas recovered  from the landfill meets any of the characteristics
identified under section 3001 of subtitle C of the {Solid Waste Dis-
posal  Act, the preceding sentence shall not apply and such conden-
sate phase or other waste material shall be deemed a hazardous
waste under that subtitle, and shall be regulated accordingly.
SEC. 126. WORKER PROTECTION STANDARDS.
  (a) PROMULGATION.—Within one year after the date of the enact-
ment  of this section, the Secretary of Labor shall, pursuant to sec-
tion 6 of the Occupational Safety and Health Act of 1970, promul-
gate standards  for the health and safety protection of employees
engaged in hazardous waste operations.
  (b)  PROPOSED STANDARDS.—The  Secretary of Labor  shall  issue
proposed regulations on  such  standards which shall  include, but
need  not be limited to, the following worker protection provisions:
      (1) SITE ANALYSIS.—Requirements for a formal hazard analy-
    sis of  the  site  and  development of a site specific  plan for
    worker protection.
      (2) TRAINING.—Requirements for contractors) to provide ini-
    tial and routine training of workers before such  workers are
    permitted to engage in hazardous  waste operations which
    would expose them to toxic substances.
      (3) MEDICAL SURVEILLANCE.—A  program of regular medical
    examination, monitoring, and  surveillance of workers engaged
    in hazardous waste  operations which would expose them  to
    toxic substances.
      (4)  PROTECTIVE EQUIPMENT.—Requirements for appropriate
    personal protective equipment, clothing,  and respirators for
    work in hazardous waste operations.
      (5) ENGINEERING CONTROLS.—Requirements for engineering
    controls concerning the use  of  equipment and  exposure  of
    workers engaged in hazardous  waste operations.
      (6) MAXIMUM EXPOSURE LIMITS.—Requirements for maximum
    exposure limitations for workers engaged in hazardous  waste
    operations,  including  necessary  monitoring and assessment
    procedures.
      (7) INFORMATIONAL PROGRAM.—A program to inform workers
    engaged in hazardous  waste operations  of the nature and

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    degree of toxic exposure likely as a result of such hazardous
    waste operations.
      (8) HANDLING.—Requirements for the handling, transporting,
    labeling, and disposing of hazardous wastes.
      (9) NEW TECHNOLOGY PROGRAM.—A program for the introduc-
    tion  of new equipment or technologies  that will  maintain
    worker protections.
      (10) DECONTAMINATION PROCEDURES.—Procedures  for decon-
    tamination.
      (11) EMERGENCY RESPONSE.—Requirements for emergency re-
    sponse and protection of workers engaged in hazardous waste
    operations.
  (c) FINAL  REGULATIONS.—Final regulations under subsection (a)
shall take effect one year after the date they are  promulgated. In
promulgating final regulations  on standards under subsection (a),
the Secretary of Labor shall include each of the provisions listed in
paragraphs (1) through  (11) of subsection (b) unless the  Secretary
determines that the evidence in the public record considered as a
whole does not support inclusion of any such provision.
  (d) SPECIFIC TRAINING  STANDARDS.—
      (1) OFF-SITE INSTRUCTION;  FIELD EXPERIENCE.—Standards  pro-
    mulgated under subsection  (a) shall include training  standards
    requiring that general site  workers (such as equipment opera-
    tors, general laborers, and other supervised personnel) engaged
    in hazardous  substance removal or  other activities which
    expose or potentially expose such workers  to hazardous  sub-
    stances receive a minimum  of 40 hours of initial instruction off
    the site,  and a minimum of three days of actual field experi-
    ence under the direct supervision of a trained, experienced su-
    pervisor, at the time of assignment. The requirements of the
    preceding sentence  shall not apply to any general site worker
    who has  received the equivalent of such training. Workers  who
    may be exposed to unique or special hazards shall be provided
    additional training.
      (2) TRAINING OF SUPERVISORS.—Standards promulgated under
    subsection (a) shall include training standards requiring  that
    onsite  managers and supervisors directly responsible for the
    hazardous waste operations (such as foremen) receive the same
    training  as  general site workers set forth in  paragraph (1) of
    this  subsection and at least eight additional hours of special-
    ized training on managing hazardous waste operations. The re-
    quirements  of the preceding sentence shall not apply to any
    person who has received the equivalent of such training.
      (3) CERTIFICATION; ENFORCEMENT.—Such  training  standards
    shall contain  provisions for certifying that general site work-
    ers,  onsite managers, and supervisors have received the speci-
    fied  training and shall prohibit any individual who has not re-
    ceived the specified training from engaging in  hazardous waste
    operations covered by the standard.
      (4) TRAINING OF  EMERGENCY RESPONSE  PERSONNEL.—Such
    training standards shall set forth requirements for the training
    of workers  who are responsible for responding to  hazardous
    emergency situations who may be exposed to  toxic substances
    in carrying out their responsibilities.

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  (e) INTERIM REGULATIONS.—The Secretary of Labor shall issue in-
terim final regulations under this section within 60 days after the
enactment  of this  section which shall provide  no less protection
under this section  for workers employed by contractors and emer-
gency response workers than the protections contained in the Envi-
ronmental  Protection Agency Manual (1981) "Health and  Safety
Requirements for Employees  Engaged in  Field Activities" and ex-
isting standards  under the Occupational Safety  and  Health  Act of
1970 found in subpart C of part 1926 of title 29 of the Code of Fed-
eral  Regulations. Such interim final  regulations shall take effect
upon issuance and shall apply until final regulations become effec-
tive under subsection (c).
  (f)  COVERAGE  OF CERTAIN  STATE AND  LOCAL EMPLOYEES.—Not
later than 90 days  after the promulgation  of final regulations
under subsection (a), the Administrator shall  promulgate standards
identical to those  promulgated by the Secretary  of Labor under
subsection (a). Standards promulgated under this  subsection shall
apply to employees of State and local governments in  each State
which does not have in effect  an approved State plan under section
18 of the Occupational Safety and Health Act of 1970 providing for
standards for the  health and safety  protection of employees en-
gaged in hazardous waste operations.
  (g) GRANT PROGRAM.—
      (1) GRANT  PURPOSES.—Grants for the training and education
    of workers who are or may be engaged in activities related to
    hazardous waste  removal or containment  or emergency  re-
    sponse may be made under this subsection.
      (2) ADMINISTRATION.—Grants under this subsection shall be
    administered  by  the  National  Institute  of  Environmental
    Health Sciences.
      (3) GRANT  RECIPIENTS.—Grants shall be awarded to nonprofit
    organizations which demonstrate  experience in implementing
    and operating  worker health and safety training and education
    programs and demonstrate the ability to reach and involve in
    training programs target populations of workers who  are or
    will be engaged in hazardous waste removal or containment or
    emergency response operations.
SEC  127. LIABILITY LIMITS FOR OCEAN INCINERATION VESSELS.
       *       ******
  (d) SAVINGS CLAUSE.—Section 106 of the Marine Protection,  Re-
search,  and Sanctuaries Act of 1972 is amended by adding the fol-
lowing new subsection at the end thereof:
  "(h) SAVINGS CLAUSE.—Nothing in this  Act shall restrict, affect
or modify the rights of any person (1) to seek damages or enforce-
ment of any  standard or  limitation under  State  law, including
State common law, or (2) to seek damages under other Federal law,
including maritime tort law, resulting from noncpmpliance with
any  requirement of this Act or any permit under this Act.".
SEC. 203. STATE PROCEDURAL REFORM.

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  (b) EFFECTIVE DATE.—The amendment made by subsection (a) of
this section shall take effect with respect to actions brought after
December 11, 1980.
SEC.  205. CLEANUP OF PETROLEUM FROM LEAKING UNDERGROUND
          STORAGE TANKS.
  (a) DEFINITION  OF PETROLEUM.—Section 900H2XB) of the Solid
Waste Disposal Act is amended by striking out all that follows "pe-
troleum" and inserting  in lieu thereof a period. Section  9001 of
such Act is amended by adding  at the end thereof the following:
      "(8) The  term "petroleum"  means  petroleum,  including
    crude oil or any fraction thereof which is liquid at standard
    conditions of temperature and pressure (60 degrees Fahrenheit
    and 14.7 pounds per square inch absolute).
  (b) STATE INVENTORIES.—Section 9002 of the Solid Waste Disposal
Act is amended by adding the following new subsection at the end
thereof:
  "(c) STATE  INVENTORIES.—Each State shall  make 2 separate in-
ventories of all underground storage tanks in such State containing
regulated substances. One inventory shall be made with respect to
petroleum and one with respect  to other regulated substances. In
making such  inventories, the State shall utilize and aggregate the
data in the notification forms submitted pursuant to subsections (a)
and (b)  of this section.  Each State shall submit such aggregated
data to the Administrator not later than 270  days  after the enact-
ment of the  Superfund  Amendments and Reauthorization Act of
1986.
  (c) FINANCIAL RESPONSIBILITY.—
      (1) REQUIREMENTS.—Section 9003(c) of the Solid Waste Dis-
    posal  Act is amended by striking "and"  at the end  of para-
    graph (4), striking the period at the end  of paragraph (5) and
    substituting ";  and" and by adding the following new para-
    graph at  the end thereof:
      "(6) requirements  for maintaining evidence  of financial re-
    sponsibility  for  taking corrective  action and  compensating
    third parties for bodily injury and property damage caused by
    sudden and nonsudden accidental releases arising from operat-
    ing an underground storage tank".
      (2) CONFORMING AMENDMENT.—Section 9003(d) of such Act is
    amended by striking out paragraph (1) and renumbering para-
    graphs (2) through (5) as paragraphs (1) through (4), respective-
    ly.
      (3) OTHER METHODS.—Section 9003(dXD of such Act (as redes-
    ignated  by paragraph (2) of this subsection)  is  amended by
    striking out "or" after "credit," and by striking out the period
    at the end thereof and inserting in lieu thereof the following:
    "or any other method satisfactory to the Administrator.".
      (4) Section 9003(d) of such  Act is further amended by adding
    at the end thereof the following new paragraph:
      "(5XA) The Administrator, in promulgating financial respon-
    sibility  regulations  under  this  section, may  establish  an
    amount of coverage for particular classes or categories of un-
    derground storage tanks containing petroleum  which shall sat-
    isfy  such  regulations and which  shall not be  less  than

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                             155

    $1,000,000 for each occurrence with an appropriate aggregate
    requirement.
      "(B) The Administrator may set amounts lower than  the
    amounts  required by subparagraph (A) of this  paragraph for
    underground storage tanks containing petroleum, which are at
    facilities  not  engaged in petroleum production,  refining,  or
    marketing and which are not used to handle substantial quan-
    tities of petroleum.
      "(C) In establishing classes and categories for purposes of
    this paragraph, the Administrator may consider the following
    factors:
         "(i) The size, type, location, storage, and handling capac-
       ity of underground storage  tanks in the class or category
       and the volume of petroleum handled by such tanks.
         "(ii) The likelihood of release and the potential extent of
       damage from any release from underground storage tanks
       in the class or category.
         "(iii) The economic impact of the limits  on the owners
       and operators of each such class or category, particularly
       relating to  the small business segment of  the  petroleum
       marketing industry.
         "(iv) The availability of methods of financial responsibil-
       ity in amounts  greater  than the amount  established  by
       this paragraph.
         "(v) Such other factors as the Administrator deems per-
       tinent.
      "(D) The Administrator may  suspend enforcement of the fi-
    nancial responsibility  requirements  for a particular  class or
    category of underground storage tanks or in a particular State,
    if the Administrator makes a determination that methods of fi-
    nancial responsibility satisfying the  requirements of this sub-
    section are not generally available  for underground storage
    tanks in that class or category, and—
         "(i) steps are being taken to form a risk retention group
       for such class of tanks; or
         "(ii) such State is taking steps  to establish a fund pursu-
       ant to section 9004(cXD of this Act to be submitted as evi-
       dence of financial responsibility.
    A suspension by the Administrator pursuant to  this paragraph
    shall extend for a period not to exceed 180  days. A  determina-
    tion to suspend may be made with respect to the same class or
    category  or for the same State  at the end  of such  period, but
    only  if substantial progress has been made in establishing a
    risk retention group, or the owners or operators in the class or
    category  demonstrate, and the Administrator  finds, that the
    formation of such a group is not possible and that the State is
    unable or unwilling to establish such a fund pursuant to clause
    (ii).".
  (d) EPA  RESPONSE PROGRAM.—Section 9003 of the Solid Waste
Disposal  Act  is amended by adding after subsection (g)  the follow-
ing new subsection:
  "(h) EPA RESPONSE PROGRAM FOR  PETROLEUM.—

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                          156

  "(1) BEFORE REGULATIONS.—Before the effective date of regu-
lations under subsection (c), the Administrator (or a State pur-
suant to paragraph (7)) is authorized to—
      "(A) require the owner or operator of an underground
    storage tank to undertake corrective action with respect to
    any release of petroleum when the Administrator (or the
    State) determines that such corrective action will be done
    properly and promptly by the owner or operator of the un-
    derground storage tank from which the release occurs; or
      "(B) undertake corrective action with respect to any re-
    lease  of  petroleum into  the environment from an under-
    ground storage  tank  if  such  action is  necessary, in the
    judgment of the Administrator (or the State), to protect
    human health and the environment.
The corrective action undertaken or required under this para-
graph shall be such as may be  necessary  to  protect human
health and  the environment. The  Administrator shall use
funds in the Leaking Underground Storage Tank Trust Fund
for payment  of costs incurred for corrective action under sub-
paragraph (B), enforcement action under  subparagraph (A),
and cost recovery under paragraph (6) of this subsection. Sub-
ject to the priority requirements of paragraph (3), the Adminis-
trator (or the State)  shall  give priority in undertaking such ac-
tions under subparagraph (B) to cases  where the Administrator
(or the  State) cannot identify a solvent owner or operator of
the tank who will undertake action properly.
  "(2) AFTER REGULATIONS.—Following the effective date of reg-
ulations under subsection (c), all actions or orders of the Ad-
ministrator (or a State pursuant to paragraph (7))  described in
paragraph (1) of this subsection shall  be in conformity with
such regulations. Following  such effective date, the Adminis-
trator (or the State) may undertake corrective action with re-
spect to any release of petroleum into the  environment from
an underground storage tank only if  such action is necessary,
in the judgment of the Administrator (or the State), to protect
human health and the environment and one or more of the fol-
lowing situations exists:
      "(A) No person can be found, within 90 days  or such
    shorter  period  as may be necessary  to  protect human
    health and the environment, who is—
          "(i) an owner or operator of the tank concerned,
          "(ii) subject to  such  corrective action  regulations,
        and
          "(iii) capable of carrying out such corrective  action
        properly.
      "(B) A situation exists which requires prompt action by
    the Administrator (or the State)  under this paragraph to
    protect human health and the environment.
      "(C) Corrective action costs at a facility exceed the
    amount  of coverage required by the Administrator  pursu-
    ant to the provisions of subsections (c) and (dX5) of this sec-
    tion and, considering the class or category of underground
    storage  tank  from which the release  occurred, expendi-

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                          157

    tures from the Leaking Underground Storsige Tank Trust
    Fund are necessary to assure an effective corrective action.
      "(D) The owner or operator of the tank has failed or re-
    fused to comply with an order of the Administrator under
    this subsection or section 9006 or with the order of a State
    under this subsection  to comply with the corrective  action
    regulations.
  "(3) PRIORITY OF CORRECTIVE ACTIONS.—The Administrator (or
a State pursuant to paragraph (7)) shall give priority in under-
taking corrective actions under this subsection, and in issuing
orders requiring owners or operators to undertake such ac-
tions, to releases of petroleum from underground storage tanks
which pose the greatest threat to human health and the envi-
ronment.
  "(4) CORRECTIVE  ACTION ORDERS.—The  Administrator  is au-
thorized to issue orders  to the owner or operator of an under-
ground storage tank  to carry out subparagraph (A)  of para-
graph (1) or to carry out  regulations issued under subsection
(cX4). A State acting pursuant to paragraph (7) of this subsec-
tion is authorized to carry out subparagraph (A) of paragraph
(1) only until the State's program is approved by the Adminis-
trator under section 9004  of this subtitle. Such  orders shall be
issued and enforced in  the same manner  and subject  to the
same requirements as orders under section 9006.
  "(5) ALLOWABLE CORRECTIVE ACTIONS.—The corrective actions
undertaken by the Administrator (or a State pursuant to para-
graph (7)) under paragraph (1) or  (2) may include temporary or
permanent relocation of residents and  alternative household
water supplies. In connection with the performance of any cor-
rective action under  paragraph (1) or (2), the Administrator
may  undertake an exposure assessment as defined  in para-
graph (10) of this subsection or provide for such an assessment
in a cooperative agreement with a State pursuant to paragraph
(7) of this subsection. The  costs of any such assessment may be
treated as corrective action for purposes of paragraph (6), relat-
ing to cost recovery.
   (6) RECOVERY or COSTS.—
      "(A) IN GENERAL.—Whenever costs have been  incurred
    by the Administrator, or by a State pursuant to paragraph
    (7), for  undertaking  corrective action  or  enforcement
    action with respect to the release of petroleum from an un-
    derground storage  tank, the owner or operator of such
    tank shall be liable to the Administrator  or the State for
    such costs. The liability under this paragraph shall be con-
    strued to be the standard of liability which obtains under
    section 311 of the Federal Water Pollution Control Act.
      "(B) RECOVERY.—In determining the  equities for seeking
     the recovery of costs under subparagraph (A), the Adminis-
     trator (or a State pursuant to paragraph (7) of this subsec-
     tion) may consider the amount of financial responsibility
     required to be maintained under subsections (c) and (dX5)
     of this section and the factors considered in establishing
     such amount under subsection (dX5).
      "(C) EFFECT ON LIABILITY.—

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                         158

         "(i) No TRANSFERS OF  LIABILITY.—No indemnifica-
       tion,  hold harmless, or similar agreement or convey-
       ance  shall be effective to transfer from the owner or
       operator of any underground storage tank or from any
       person who may be liable for a release or threat of re-
       lease under this subsection, to any other person the li-
       ability imposed under this subsection. Nothing in this
       subsection shall  bar any  agreement to insure,  hold
       harmless, or  indemnify a party to such agreement for
       any liability under this section.
         "(ii) No BAR TO CAUSE OF ACTION.—Nothing in this
       subsection, including the provisions of clause (i) of this
       subparagraph, shall bar a cause  of action  that an
       owner or operator  or any other  person  subject to li-
       ability under this section, or a guarantor, has or would
       have, by reason  of subrogation or otherwise against
       any person.
      "(D) FACILITY.—For purposes of this paragraph, the term
    'facility' means, with respect to any owner or operator, all
    underground storage tanks used for the storage of petrole-
    um which are owned or operated by such owner or opera-
    tor and located on a single parcel of property (or on  any
    contiguous or adjacent property).
  "(7) STATE AUTHORITIES.—
      "(A) GENERAL.—A State may exercise the authorities in
    paragraphs (1) and (2) of this subsection, subject to the
    terms and conditions of paragraphs  (3), (5), (9),  (10),  and
    (11), and including the  authorities of paragraphs (4), (6),
    and (8) of this subsection if—
         "(i) the Administrator determines that the State has
       the capabilities to carry out effective corrective actions
       and enforcement activities; and
         "(ii) the Administrator enters into a  cooperative
       agreement with the State setting out the actions to be
       undertaken by the State.
    The Administrator may provide funds from the  Leaking
    Underground Storage Tank Trust Fund for the reasonable
    costs of the State's actions under the cooperative  agree-
    ment.
      "(B)  Goer SHARE.—Following the effective date of the
    regulations under subsection (c) of this section, the State
    snail pay 10 per  centum of the cost of corrective actions
    undertaken  either by the Administrator or by the State
    under a cooperative agreement, except that the Adminis-
    trator may take corrective action at a facility where imme-
    diate action is necessary to respond to an imminent and
    substantial endangerment to human health or the environ-
    ment if the State fails to pay the cost share.
  "(8)  EMERGENCY  PROCUREMENT  POWERS.—Notwithstanding
any other provision of law, the Administrator may  authorize
the use of such emergency procurement powers as he  deems
necessary.
  "(9) DEFINITION OF  OWNER.—As used in this subsection, the
term 'owner' does not include any person who, without partici-

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                           159

 pating in the management of an underground storage tank and
 otherwise not engaged in petroleum production,  refining, and
 marketing, holds indicia of ownership primarily to protect the
 owner's security interest in the tank.
    "(10) DEFINITION OF EXPOSURE ASSESSMENT.—As used  in this
 subsection, the term 'exposure assessment' means an  assess-
 ment to  determine the  extent  of exposure of, or potential for
 exposure of,  individuals  to petroleum from a release from an
 underground storage tank based on such factors as the  nature
 and extent of contamination and the existence of or potential
 for pathways of human exposure (including ground or surface
 water contamination, air emissions, and food chain contamina-
 tion), the size of the community within the likely pathways of
 exposure, and  the comparison of expected human exposure
 levels to the  short-term and long-term health effects associated
 with identified contaminants and any available recommended
 exposure or  tolerance limits for such contaminants. Such as-
 sessment shall not delay  corrective action to abate immediate
 hazards or reduce exposure.
    "(11) FACILITIES WITHOUT FINANCIAL RESPONSIBILITY.—At any
 facility where the owner or operator has failed to maintain evi-
 dence of financial responsibility in amounts at least equal to
 the amounts established by subsection  (dX5XA) of this  section
 (or a lesser amount if such amount is applicable  to such facili-
 ty as a result of subsection (dXSXB) of this section) for what-
 ever reason  the  Administrator shall expend no monies from
 the Leaking  Underground Storage Tank Trust Fund to clean
 up releases at such facility pursuant to the provisions of para-
 graph (1) or (2) of this subsection. At such facilities the Admin-
 istrator shall use  the authorities provided in subparagraph (A)
 of paragraph (1)  and paragraph (4) of this subsection and sec-
 tion 9006 of this  subtitle to order corrective action to clean up
 such releases. States acting pursuant to paragraph (7) of this
 subsection shall use the authorities provided in  subparagraph
 (A) of paragraph (1) and paragraph (4) of this  subsection to
 order corrective  action  to  clean up such releases. Notwith-
 standing the provisions of this paragraph, the Administrator
 may use monies from the fund to take the corrective  actions
 authorized  by paragraph  (5) of this subsection to  protect
 human health at such facilities and shall seek full recovery of
 the costs of all such actions pursuant to the provisions of para-
 graph (6XA) of this subsection and without consideration of the
 factors in  paragraph (6XB)  of  this subsection.  Nothing in this
 paragraph shall  prevent the Administrator (or a State pursu-
 ant to paragraph (7) of this subsection) from talking corrective
 action at a facility where there is no solvent owner or operator
 or where immediate action is necessary to respond to an immi-
 nent and substantial endangerment of human health or the en-
 vironment.".
(e) FINANCIAL RESPONSIBILITY IN STATE PROGRAMS.—
    (1)  Section 9004(cXD of the  Solid Waste Disposal  Act is
  amended by striking out "financed by fees on tank owners and
  operators and".

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                              160

      (2) Section 9004(cX2) of the Solid Waste Disposal Act  is
    amended by striking out "or" after  "credit," in the first sen-
    tence and by striking out the period at the end thereof and in-
    serting in lieu thereof the following: "or any other method sat-
    isfactory  to  the Administrator.".  Such section  is  further
    amended by adding after the word "terms" in the second sen-
    tence the following: "including the amount  of  coverage re-
    quired  for various classes and categories of underground stor-
    age tanks pursuant to section 9003(dX5),".
  (f) AUTHORITY TO ENTER FOR CORRECTIVE ACTIONS.—
      (1) Section 9005(a) of the Solid Waste Disposal Act is amend-
    ed by inserting the words "taking any corrective  action" after
    the word "study", inserting the words "acting pursuant to sub-
    section (hX7) of section 9003 or" after the words "or representa-
    tive  of  a State", striking the word "and"  before  the words
    "permit  such officer", and  inserting the words  "and permit
    such officer to have  access  for corrective  action" after the
    words "relating  to such tanks" in the first sentence thereof.
    Such section  is  further  amended  by  inserting  the  words
    "taking  corrective action,"  after  the word "study," in the
    second  sentence thereof.
      (2) Section 9005Xa) of the Solid Waste Disposal Act is amend-
    ed by striking the word "and" at the end of paragraph (2), in-
    serting the word "and" after paragraph (3) and adding the fol-
    lowing  new paragraph—
      "(4) to take corrective action.
      (3) Section 9005 of the Solid Waste Disposal Act is amended
    by changing the heading thereof to read as follows—

   "INSPECTIONS, MONITORING, TESTING AND CORRECTIVE ACTION".

  (g) COORDINATION WITH  OTHER LAWS.—Section 9008 of the Solid
Waste Disposal Act is amended to read as follows:

                       "STATE AUTHORITY

  "SEC. 9008. Nothing in  this subtitle shall  preclude or deny any
right  of  any State or political subdivision thereof to adopt or en-
force  any regulation, requirement, or standard of performance re-
specting underground storage tanks that is more stringent than a
regulation,  requirement,  or standard  of performance in  effect
under this subtitle or to  impose any additional liability with re-
spect  to  the release of regulated substances within such State  or
political subdivision.
  (h) POLLUTION LIABILITY INSURANCE.—
      (1) STUDY.—The Comptroller General shall conduct a  study
    of the  availability of  pollution liability insurance,  leak insur-
    ance, and contamination insurance for owners and operators of
    petroleum storage and distribution facilities.  The  study shall
    assess the current and projected extent to which private insur-
    ance can contribute to the financial responsibility of owners
    and  operators of underground storage tanks and  the ability of
    owners and operators  of underground storage tanks to  main-
    tain financial responsibility through other methods. The study
    shall consider  the experience  of  owners  and  operators  of

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                              161

    marine vessels in getting insurance for their liabilities under
    the Federal Water Pollution Control Act and the operation of
    the Water Quality Insurance Syndicate.
      (2) REPORT.—The Comptroller General shall report the find-
    ings under this subsection to the Congress within 15 months
    after the enactment of this subsection. Such report shall in-
    clude  recommendations  for  legislative  or  administrative
    changes that will enable owners and operators of underground
    storage tanks to maintain financial responsibility sufficient to
    provide all clean-up  costs and damages that  may  result from
    reasonably foreseeable releases and events.
  (i) CRIMINAL PENALTIES RELATING TO USED OIL.—Subtitle C of the
Solid Waste Disposal Act is amended as follows:
      (1) In paragraphs (4)  and (5) of section 3008(d) after "hazard-
    ous waste" insert "or any used oil not identified or listed as a
    hazardous waste under this subtitle".
      (2) Delete "accompanied by a manifest; or" in paragraph (5)
    and insert "accompanied by a manifest;".
      (3) Insert "; or" after paragraph (6).
      (4) Add the following new paragraph after paragraph (6):
      "(7) knowingly stores, treats, transports,  or causes to be
    transported, disposes of, or otherwise  handles any  used oil not
    identified or listed as a hazardous waste under subtitle C of the
    Solid Waste Disposal Act—
          "(A)  in knowing violation of any material condition or
        requirement of a permit under this subtitle C; or
          "(B)  in knowing violation of any material condition or
        requirement of  any applicable  regulations or standards
        under this Act;
      (5) In section 3008(e):
          (A) Insert "or used oil not identified or listed as a haz-
        ardous waste under this subtitle" immediately after "this
        subtitle".
          (B) Strike "or" immediately before "(6)".
          (C) Insert ", or (7)" immediately after "(6)".
  (j) STATE PROGRAMS FOR USED OIL.—Section  3006 of the Solid
Waste Disposal Act  is amended by adding the following new sub-
section at the end thereof:
  "(h) STATE PROGRAMS FOR USED OIL.—In the case of used oil
which is not listed or identified under this subtitle as  a hazardous
waste but which is regulated under section 3014, the provisions of
this section regarding  State programs  shall apply in  the same
manner and to the same extent as such provisions apply to hazard-
ous waste identified or listed under this subtitle.
SEC. 209. RESEARCH, DEVELOPMENT, AND DEMONSTRATION.
  (a) PURPOSE.—The purposes of this section are as follows:
       (1) To establish a comprehensive  and coordinated Federal
    program of research, development, demonstration, and training
    for the purpose of promoting the development of alternative
    and innovative treatment  technologies that can be used in re-
    sponse actions under the CERCLA program, to provide  incen-
    tives for the development and use of such technologies, and to
    improve the scientific  capability to assess, detect and evaluate

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    the effects on and risks to human health from hazardous sub-
    stances.
      (2) To establish a  basic university  research and  education
    program within the Department of Health and Human Serv-
    ices  and a  research, demonstration, and training  program
    within the Environmental Protection Agency.
      (3) To reserve certain funds from the Hazardous Substance
    Trust Fund to support a basic research program within the De-
    partment of Health and Human Services,  and an applied and
    developmental research program within  the Environmental
    Protection Agency.
      (4) To enhance the  Environmental Protection Agency's inter-
    nal research capabilities related to CERCLA activities,  includ-
    ing site assessment and technology evaluation.
      (5) To provide incentives for the development of alternative
    and innovative treatment technologies in  a manner that sup-
    plements or coordinates with, but does not compete with or du-
    plicate, private sector development of such technologies.
SEC.  211.  DEPARTMENT OF DEFENSE  ENVIRONMENTAL RESTORATION
          PROGRAM.
  (a) IN GENERAL—(1) Title 10, United States Code, is amended—
      (A) by redesignating section 2701 as section 2721; and
      (B) by inserting after chapter  159 the following new chapter:

"CHAPTER 160—ENVIRONMENTAL RESTORATION

"Sec.
"2701. Environmental restoration program.
"2702. Research, development, ana demonstration program.
"2703. Environmental restoration transfer account.
"2704. Commonly found unregulated hazardous substances.
"2705. Notice of environmental restoration activities.
"2706. Annual report to Congress.
"2707. Definitions.

"§ 2701. Environmental restoration  program
  "(a) ENVIRONMENTAL RESTORATION PROGRAM.—
      "(1) IN GENERAL.—The Secretary of Defense shall carry out a
    program of  environmental restoration at facilities under the
    jurisdiction  of the Secretary. The program shall be known as
    the 'Defense Environmental Restoration Program'.
      "(2) APPLICATION OF SECTION 120 or CERCLA.—Activities of the
    program described in subsection (bXD shall be carried out sub-
    ject to, and  in a manner consistent with, section 120 (relating
    to Federal facilities) of the Comprehensive Environmental Re-
    sponse, Compensation, and Liability Act of 1980 (hereinafter in
    this  chapter referred to as 'CERCLA') (42 U.S.C. 9601 et  seq.).
      "(3) CONSULTATION WITH EPA.—The program shall be  carried
    out in consultation with the Administrator of the Environmen-
    tal Protection Agency.
      "(4)  ADMINISTRATIVE OFFICE  WITHIN  OSD.—The Secretary
    shall identify an office within the Office of the Secretary which
    shall have responsibility for carrying out  the program.

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                              163

  "(b) PROGRAM GOALS.—Goals of the program shall include the fol-
lowing:
      "(1) The identification, investigation,  research and develop-
    ment, and cleanup  of contamination  from  hazardous  sub-
    stances, pollutants, and contaminants.
      "(2) Correction of other environmental damage (such as de-
    tection and disposal of unexploded ordnance) which creates an
    imminent and substantial endangerment to the public health
    or welfare or to the environment.
      "(3) Demolition and removal  of unsafe buildings and struc-
    tures, including buildings and structures of the Department  of
    Defense at sites formerly used by or under  the jurisdiction  of
    the Secretary.
  "(c) RESPONSIBILITY FOR RESPONSE ACTIONS.—
      "(1) BASIC RESPONSIBILITY.—The Secretary  shall carry out (in
    accordance with the provisions of this chapter and CERCLA)
    all response actions with respect  to releases of hazardous sub-
    stances from each of the following:
          "(A) Each facility or site owned by, leased to, or other-
        wise possessed by the United States and  under  the jurisdic-
        tion of the Secretary.
          "(B) Each facility or site which was under the jurisdic-
        tion of the Secretary and owned by, leased to, or otherwise
        possessed by the United States at the time of actions lead-
        ing to contamination by hazardous substances.
          "(C) Each vessel owned or  operated by  the  Department
        of Defense.
      "(2) OTHER  RESPONSIBLE PARTIES.—Paragraph (1) shall not
    apply to a removal or remedial action if the  Administrator has
    provided for  response  action  by a  potentially   responsible
    person in accordance with section 122 of CERCLA (relating to
    settlements).
      "(3) "TATE FEES AND CHARGES.—The Secretary shall pay fees
    and ci,.urges imposed by State  authorities for permit services
    for the  disposal of hazardous substances on lands which are
    under the jurisdiction of the Secretary to the same extent that
    nongovernmental entities are required to pay fees  and charges
    imposed by State authorities for permit services. The preceding
    sentence shall not apply with respect to a payment that is the
    responsibility  of a lessee, contractor, or other private person.
  "(d) SERVICES OF OTHER  AGENCIES.—The  Secretary may enter
into agreements on  a reimbursable basis with  any other Federal
agency, and  on a reimbursable or other basis  with any State  or
local  government agency, to obtain the services of that agency to
assist the Secretary in carrying put any of the Secretary's responsi-
bilities under this section. Services which may  be obtained under
this subsection include the identification, investigation, and clean-
up of any off-site contamination possibly resulting from the release
of a hazardous substance or waste at a facility under the Secre-
tary's jurisdiction.
   (e) RESPONSE ACTION CONTRACTORS.—The provisions of section
119 of CERCLA apply to response action contractors (as defined in
that section) who carry out response actions under this section.

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                             164

"§ 2702. Research, development, and demonstration program
  "(a) PROGRAM.—As part of the Defense Environmental Restora-
tion  Program, the Secretary of Defense shall carry out a program
of research, development, and demonstration with respect to haz-
ardous wastes. The program shall be  carried out in consultation
and  cooperation with the Administrator and the advisory council
established under section 311(aX5) of CERCLA. The program shall
include  research, development, and demonstration with respect to
each of the following:
      "(1) Means of reducing the quantities  of hazardous waste
    generated by activities and facilities under the jurisdiction of
    the Secretary.
      "(2) Methods of treatment, disposal,  and management (in-
    cluding recycling and detoxifying) of hazardous waste of the
    types and quantities generated by current and former activi-
    ties  of  the  Secretary  and  facilities  currently and formerly
    under the jurisdiction of the  Secretary.
      "(3) Identifying more cost-effective  technologies for cleanup
    of hazardous substances.
      "(4) Toxicological data collection and methodology on risk of
    exposure to hazardous waste generated by the Department of
    Defense.
      "(5) The testing, evaluation, and field demonstration of any
    innovative technology, processes,  equipment, or  related train-
    ing devices  which may  contribute to  establishment of new
    methods to control, contain, and treat hazardous substances, to
    be carried out in consultation and cooperation with, and to the
    extent possible in the same manner and standards as, testing,
    evaluation, and field demonstration carried out by the Admin-
    istrator, acting through the office of technology demonstration
    of the Environmental Protection Agency.
  "(b) SPECIAL PERMIT.—The Administrator may use the authori-
ties of section 3005Xg)  of the Solid Waste Disposal Act (42 U.S.C.
6925(g)) to issue a permit for testing and evaluation which receives
support under this section.
   (c) CONTRACTS AND GRANTS.—The Secretary may enter into con-
tracts and cooperative agreements with, and make grants to,  uni-
versities, public and private profit and nonprofit entities, and other
persons to carry out the research, development, and demonstration
authorized under this section. Such contracts may be entered into
only to the extent that appropriated  funds are  available for that
purpose.
  "(d) INFORMATION COLLECTION AND DISSEMINATION.—
      "(1) IN GENERAL.—The Secretary shall develop, collect, evalu-
    ate, and disseminate information  related to the use (or poten-
    tial use) of the treatment, disposal, and management technol-
    ogies that are researched, developed,  and demonstrated under
    this section.
      "(2)  ROLE OP  EPA.—The functions  of the Secretary under
    paragraph (1) shall be carried out in cooperation and consulta-
    tion with the Administrator. To the extent appropriate and
    agreed upon by the Administrator and the Secretary, the Ad-
    ministrator shall evaluate and disseminate such  information

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    through the office of technology demonstration of the Environ-
    mental Protection Agency.

"§ 2703. Environmental restoration transfer account
  "(a) ESTABLISHMENT OF TRANSFER ACCOUNT.—
      "(I) ESTABLISHMENT.— There is hereby established in the De-
     gartment of Defense an account to be known as the 'Defense
     nvironmental Restoration Account'  (hereinafter in this sec-
    tion referred to as the 'transfer account'). All sums appropri-
    ated to carry out the functions of the Secretary  of Defense re-
    lating to environmental restoration under this chapter or any
    other provision of law  shall be appropriated to the transfer ac-
    count.
      "(2) REQUIREMENT OF AUTHORIZATION OF  APPROPRIATIONS.—
    No funds may be appropriated to  the transfer account unless
    such sums have been specifically authorized by law.
      "(3) AVAILABILITY OF FUNDS IN TRANSFER ACCOUNT.—Amounts
    appropriated to the transfer account shall  remain available
    until transferred under subsection (b).
  "(b)  AUTHORITY  To TRANSFER  TO  OTHER  DOD  ACCOUNTS.—
Amounts in the transfer  account shall be available to be trans-
ferred by the Secretary to any appropriation account or fund of the
Department for obligation from that  account or fund. Funds so
transferred shall be merged with and available for  the same pur-
poses and for  the  same period as the account or fund to which
transferred.
  "(c) OBLIGATION OF  TRANSFERRED AMOUNTS.—Funds transferred
under subsection (b)  may  only be obligated or expended from the
account or fund to which transferred in order to carry out the func-
tions of the Secretary under this chapter or environmental restora-
tion functions under any other provision of law.
  "(d) BUDGET REPORTS.—In  proposing the Budget  for any  fiscal
year pursuant to section  1105 of title 31, the President shall set
forth separately the  amount requested for environmental restora-
tion programs of the Department of Defense under this chapter or
any other Act.
   (e) AMOUNTS RECOVERED UNDER CERCLA.—Amounts recovered
under section 107 of CERCLA for response actions of the Secretary
shall be credited to the transfer account.

"§ 2704. Commonly found unregulated hazardous substances
  "(a) NOTICE TO HHS.-
      "(1) IN GENERAL.—The Secretary of Defense shall notify the
    Secretary of Health and Human Services  of the  hazardous sub-
    stances which the Secretary  of Defense determines to be the
    most commonly found unregulated hazardous substances at fa-
    cilities under the Secretary's jurisdiction.  The notification shall
    be of not  less than the 25 most widely used such substances.
      "(2) DEFINITION.—In this subsection, the  term "unregulated
     hazardous substance"  means a hazardous substance—
          "(A) for which no standard,  requirement, criteria, or lim-
        itation is in effect under the Toxic Substances Control Act,
        the Safe Drinking Water Act, the Clean Air Act, or the
        Clean Water Act; and

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          "(B) for which  no water quality criteria are in effect
        under any provision of the Clean Water Act.
  "(b)  TOXICOLOGICAL  PROFILES.—The Secretary of  Health  and
Human Services shall  take such steps as necessary to ensure the
timely preparation of toxicological profiles  of each of the sub-
stances of which the Secretary is notified under subsection (a). The
profiles of such substances shall include each of the following:
      "(1) The examination, summary, and interpretation of avail-
    able toxicological information and epidemiologic evaluations on
    a hazardous  substance in order to ascertain the levels of signif-
    icant  human exposure for the substance and  the associated
    acute, subacute, and chronic health effects.
      "(2) A determination of whether  adequate information on
    the health effects of each substance is available or in the proc-
    ess of development  to determine  levels of exposure  which
    present  a significant risk to human health of acute, subacute,
    and chronic health effects.
      "(3) Where appropriate, toxicological testing directed toward
    determining the maximum exposure level of a hazardous sub-
    stance that is safe for humans.
  "(c) DOD  SUPPORT.—The Secretary of Defense shall transfer to
the Secretary of Health and Human Services  such toxicological
data, such sums  from amounts appropriated to the  Department of
Defense, and such personnel of the Department of Defense as may
be necessary (1)  for the preparation of toxicological profiles under1
subsection (b) or  (2) for other health related activities under section
104(i) of CERCLA. The Secretary of Defense and the Secretary of
Health and Human Services shall enter into a memorandum of un-
derstanding regarding the manner  in which this section shall be
carried out, including the manner for transferring  funds and per-
sonnel and for coordination of activities under this section.
  "(d) EPA HEALTH ADVISORIES.—
      "(1) PREPARATION.—At the request of the Secretary of De-
    fense, the Administrator shall, in  a timely  manner, prepare
    health advisories on hazardous substances. Such  an advisory
    shall be prepared on each hazardous substance—
          "(A) for which no advisory exists;
          "(B) which ia found to threaten drinking water; and
          "(C) which  is emanating from a facility under the juris-
        diction of the Secretary.
      "(2) CONTENT OF HEALTH ADVISORIES.—Such health advisories
    shall  provide specific advice on the levels of contaminants in
    drinking water at which adverse health effects would not be
    anticipated and which include a margin of safety so as to pro-
    tect the most sensitive members of the population at risk. The
    advisories shall provide  data on  one-day,  10-day, and longer-
    term  exposure periods where available toxicological data exist.
      "(3) DOD SUPPORT FOR HEALTH ADVISORIES.—The Secretary of
    Defense  shall transfer to the Administrator such  toxicological
    data,  such sums from amounts appropriated to the Department
    of Defense, and such personnel of the Department of Defense
    as may be necessary for the preparation of such health advisor-
    ies. The Secretary and the Administrator shall enter into  a
    memorandum  of understanding regarding the  manner in

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    which  this  subsection  shall be  carried  out,  including  the
    manner for transferring funds and personnel and for coordina-
    tion of activities under this subsection.
  "(e) CROSS REFERENCE.—Section 104(i) of CERCLA applies to fa-
cilities under  the jurisdiction of the  Secretary of Defense in the
manner prescribed in that section.
  "(f) FUNCTIONS OF HHS To BE CARRIED Our THROUGH ATSDR.—
The functions of the Secretary of Health  and Human  Services
under this section shall be carried out through the Administrator
of the Agency of Toxic Substances and Disease Registry of the De-
partment of Health and Human Services established under section
104(i) of CERCLA.

"§ 2705. Notice of environmental restoration activities
  "(a) EXPEDITED NOTICE.—The Secretary of  Defense  shall take
such actions as necessary to ensure that the regional offices of the
Environmental Protection Agency and appropriate State and local
authorities for the  State in  which a facility under the Secretary's
jurisdiction is located receive prompt  notice of each of the follow-
ing:
      "(1) The discovery of releases or threatened releases of haz-
    ardous substances at the facility.
      "(2) The extent of the threat to public health and the envi-
    ronment which may be associated with any such release or
    threatened release.
      "(3) Proposals made by the Secretary to carry out  response
    actions with respect to any such release or threatened release.
      "(4)  The initiation  of any response action with respect to
    such release or threatened release and  the commencement of
    each distinct phase of such activities.
  "(b) COMMENT BY EPA AND STATE AND LOCAL AUTHORITIES.—
      "(1)  RELEASE NOTICES.—The Secretary shall ensure  that the
    Administrator  of the Environmental Protection  Agency and
    appropriate State and local officials have an adequate opportu-
    nity to comment on notices under paragraphs (1) and (2) of sub-
    section (a).
      "(2)  PROPOSALS  FOR RESPONSE ACTIONS.—The Secretary shall
    require that an adequate  opportunity for timely review and
    comment be afforded to the Administrator and to appropriate
    State and local officials after making a proposal referred to in
    subsection (aX3) and before undertaking an activity or action
    referred to in subsection (aX4). The preceding sentence does not
    apply if the action  is an emergency removal taken because of
    imminent and substantial endangerment  to human health or
    the environment and consultation would be impractical.
   "(c)  TECHNICAL  REVIEW  COMMITTEE.—Whenever possible and
practical, the Secretary shall establish a technical review commit-
tee to review and comment on Department of Defense actions and
proposed actions with respect to releases or threatened releases of
hazardous substances at installations. Members of any such  com-
mittee shall include at least one representative  of the Secretary,
the Administrator, and appropriate State and  local authorities and
shall include a public representative of the community involved.

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                              168

"§ 2706. Annual report to Congress
  "(a) REPORT ON PROGRESS IN IMPLEMENTATION.—The Secretary of
Defense shall submit to Congress a report each fiscal year describ-
ing the progress made by the Secretary during the preceding fiscal
year in implementing the requirements of this chapter.
  "(b)  MATTERS  To BE INCLUDED.—Each such report shall include
the following:
      "(1) A  statement for each installation under the jurisdiction
    of the Secretary of the number of individual facilities at which
    a hazardous substance has been identified.
      "(2) The status of response actions contemplated or under-
    taken at  each such facility.
      "(3) The specific cost estimates  and budgetary proposals in-
    volving response actions contemplated or undertaken at each
    such facility.
      "(4) A  report on progress on conducting response actions at
    facilities  other than facilities on the National Priorities List.

"§ 2707. Definitions
  "In this chapter:
      "(1)  The  terms  'environment', 'facility',  'hazardous sub-
    stance', 'person', 'release', 'removal', 'response',  'disposal', and
    'hazardous waste' have the meanings given those terms in sec-
    tion 101 of CERCLA  (42 U.S.C. 9601).
      "(2) The term 'Administrator'  means the Administrator of
    the Environmental Protection Agency.".
  "(2) The tables of chapters  at the beginning of subtitle A, and at
the beginning  of part  IV of subtitle A,  of such  title  are each
amended by inserting after the item relating to chapter 159 the fol-
lowing new item:
"160. Environmental Restoration	  2701".
  "(b)  MILITARY CONSTRUCTION PROJECTS.—(1) Chapter  169 of title
10, United States Code, is amended by inserting at the end of sub-
chapter I the following new section:

"§ 2810. Construction projects for environmental response actions
  "(a) Subject to subsection (b), the Secretary of Defense may carry
out a military construction project not otherwise authorized by law
(or may authorize the Secretary  of a military department to carry
out such a project) if the Secretary of Defense determines that the
project is necessary to carry out a response action  under chapter
160 of this title or under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.).
  "(bXD When a decision is made to carry out a military construc-
tion project  under  this section, the Secretary of Defense shall
submit a  report in writing to the appropriate committees of Con-
gress on that decision. Each such report shall include—
       "(A) the justification for the project and the current estimate
    of the cost of the project; and
       "(B) the justification for carrying out the project under this
    section.

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                               169

  "(2) The project may then be carried out only after the end of the
21-day period beginning on the date the notification is received by
such committees.
  "(c) In this section, the term 'response action' has the meaning
given that term in section 101 of the Comprehensive Environmen-
tal  Response, Compensation,  and Liability Act of 1980 (42 U.S.C.
9601).".
  "(2) The table of sections at the beginning of subchapter I of such
chapter is amended by adding at the end thereof the following new
item:
"2810. Construction projects for environmental response actions.".
  "(c) EFFECTIVE DATE.—Section 2703(aX2) of title 10, United States
Code, as added by subsection (a),  shall apply with respect  to funds
appropriated for fiscal years beginning after September 30, 1986.
SEC. 213. LOVE CANAL PROPERTY ACQUISITION.
  (a) CONGRESSIONAL FINDINGS.—
      (1) The area known as Love Canal located in the city of Niag-
    ara Falls and the town of Wheatfield, New York, was the first
    toxic waste site  to  receive national attention. As a result of
    that attention Congress  investigated the problems associated
    with toxic waste sites and enacted CERCLA to deal with these
    problems.
      (2) Because Love Canal came to the Nation's attention prior
    to  the  passage  of  CERCLA  and  because  the  fund  under
    CERCLA was not available to compensate for all of the  hard-
    ships endured by the citizens in the area, Congress has deter-
    mined that special provisions are required. These provisions do
    not affect the lawfulness, implementation,  or selection of any
    other response actions at Love Canal or at any other facilities.

    TITLE HI—EMERGENCY PLANNING AND COMMUNITY
                        RIGHT-TO-KNOW

SEC. 300. SHORT TITLE; TABLE OF CONTENTS.
  (a) SHORT TITLE.—This title may be cited  as  the "Emergency
Planning and Community Right-To-Know Act of 1986".
  (b) TABLE or CONTENTS.—The table of contents  of this title is as
follows:
Sec. 300. Short title; table of contents.
             Subtitle A—Emergency Planning and Notification
Sec. 301. Establishment of State commissions, planning districts, and local commit-
          tees.
Sec. 302. Substances and facilities covered and notification.
Sec. 303. Comprehensive emergency response plans.
Sec. 304. Emergency notification.
Sec. 305. Emergency training and review of emergency systems.
                   Subtitle B—Reporting Requirements
Sec. 311. Material safety data sheets.
Sec. 312. Emergency and hazardous chemical inventory forms.
Sec. 313. Toxic chemical release forms.
                     Subtitle C—General Provisions
Sec. 321. Relationship to other law.
Sec. 322. Trade secrets.

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                              170

Sec. 323. Provision of information to health professionals, doctors, and nurses.
Sec. 324. Public availability of plans, data sheets, forms, and followup notices.
Sec. 325. Enforcement.
Sec. 326. Civil Actions.
Sec. 327. Exemption.
Sec. 328. Regulations.
Sec. 329. Definitions.
Sec. 330. Authorization of appropriations.

        Subtitle A—Emergency Planning and Notification

SEC. 301. ESTABLISHMENT OF STATE COMMISSIONS, PLANNING DIS-
           TRICTS, AND LOCAL COMMITTEES.
  (a)  ESTABLISHMENT OF STATE  EMERGENCY  RESPONSE COMMIS-
SIONS.—Not later than six months after the date of the enactment
of this title, the Governor of each State shall appoint a State emer-
gency response  commission. The  Governor may designate as the
State emergency response commission one or more existing emer-
gency response organizations that are State-sponsored or appoint-
ed. The Governor shall, to the extent practicable, appoint persons
to the State emergency  response  commission who have technical
expertise in the emergency response field. The State emergency re-
sponse commission shall appoint local emergency planning commit-
tees under subsection (c) and shall supervise and coordinate the ac-
tivities of such committees. The State emergency response commis-
sion shall establish procedures for receiving and processing  re-
quests from the public for information under section 324, including
tier II information under section 312. Such procedures shall include
the designation of an official  to serve as coordinator for informa-
tion. If the Governor of any State  does not designate a State emer-
gency response commission within such period,  the Governor shall
operate as the State emergency response commission until the Gov-
ernor makes such designation.
  (b)  ESTABLISHMENT OF EMERGENCY PLANNING  DISTRICTS.—Not
later than nine months after the date of the enactment of this title,
the State  emergency response commission shall designate emergen-
cy planning  districts in  order  to facilitate preparation and imple-
mentation of emergency plans. Where appropriate, the State emer-
gency response commission may designate existing political subdi-
visions  or multijurisdictional planning organizations as such dis-
tricts.  In  emergency planning areas that involve more than one
State, the State emergency response commissions of all  potentially
affected States  may designate emergency planning districts and
local  emergency planning committees by agreement.  In  making
such designation, the State emergency response commission shall
indicate which facilities subject to the requirements of this subtitle
are within such emergency planning district.
   (c)  ESTABLISHMENT OF LOCAL  EMERGENCY  PLANNING COMMIT-
TEES.—Not later than 30 days after  designation of emergency plan-
ning districts or 10  months after the date of the enactment of this
title,  whichever is  earlier, the State emergency response commis-
sion shall appoint members of a local emergency planning commit-
tee for each emergency planning district. Each  committee shall in-
clude, at  a minimum, representatives from each of the following
groups  or organizations: elected State and  local officials;  law en-
forcement, civil defense, firefighting, first aid, health, local environ-

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mental, hospital, and transportation personnel; broadcast and print
media; community groups; and owners and operators of facilities
subject to the requirements of this subtitle. Such committee shall
appoint a chairperson and shall establish rules by which the com-
mittee shall function. Such rules shall include provisions for public
notification of committee  activities, public meetings to discuss the
emergency plan, public comments, response to such comments by
the committee, and distribution of the emergency plan. The local
emergency planning committee  shall establish procedures for re-
ceiving and processing  requests from  the public for information
under section 324, including tier II information under section 312.
Such procedures shall include the designation of an official to serve
as coordinator for information.
  (d) REVISIONS.—A  State emergency response  commission may
revise its designations and appointments under subsections (b) and
(c) as it deems  appropriate.  Interested persons  may petition the
State emergency response commission to modify the membership of
a local emergency planning committee.
SEC. 302. SUBSTANCES AND FACILITIES COVERED AND NOTIFICATION.
  (a) SUBSTANCES COVERED.—
      (1) IN GENERAL.—A substance is subject to  the requirements
    of this subtitle if the substance is on the list published under
    paragraph (2).
      (2) LIST OP EXTREMELY  HAZARDOUS SUBSTANCES.—Within  30
    days after the date of the enactment of this title, the Adminis-
    trator shall publish a list of extremely hazardous  substances.
    The list shall be the same as the list of substances published in
    November  1985 by the Administrator in Appendix  A of the
    "Chemical  Emergency Preparedness Program  Interim  Guid-
    ance".
      (3) THRESHOLDS.—(A) At the time the list referred to in para-
    graph (2) is published the Administrator shall—
          (i) publish an  interim final  regulation establishing  a
        threshold planning quantity for each substance on the list,
        taking into account the criteria described in paragraph (4),
        and
          (ii) initiate a rulemaking in order to publish final  regula-
        tions establishing  a threshold planning  quantity for each
        substance on the list.
      (B) The threshold planning quantities may, at the Adminis-
    trator's discretion, be based on classes of chemicals or  catego-
    ries of facilities.
      (O If the Administrator fails to publish an interim final
    illation establishing a threshold planning quantity for a sub-
    stance within 30 days after the date of the enactment of this
    title, the  threshold planning quantity for the substance shall
    be  2 pounds until such time as the Administrator publishes
    regulations establishing a threshold for the substance.
      (4) REVISIONS.—The Administrator may revise the list and
    thresholds under paragraphs (2) and (3) from time to time. Any
    revisions  to the list shall take into  account the toxicity, reac-
    tivity, volatility, dispersability, combustability, or flammability
    of  a substance. For  purposes  of the  preceding; sentence, the

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    term  "toxicity"  shall include any short-  or long-term  health
    effect which may result from a short-term exposure to the sub-
    stance.
  (b) FACILITIES COVERED.—(1) Except as  provided in section 304, a
facility is  subject to the requirements of this subtitle if a substance
on the list referred to in subsection (a) is present at the facility in
an amount in excess of the threshold planning quantity established
for such substance.
  (2) For  purposes of emergency planning, a Governor or a State
emergency response  commission may designate additional facilities
which shall be subject to the requirements of this subtitle,  if such
designation is made after  public notice  and opportunity for com-
ment. The Governor or State emergency  response commission shall
notify the facility concerned of any facility designation under this
paragraph.
  (c) EMERGENCY PLANNING NOTIFICATION.—Not later  than seven
months after the date of the enactment  of this title, the owner or
operator of each facility subject to the requirements of this subtitle
by reason of subsection (bXl) shall notify the State emergency re-
sponse commission  for the  State in which such facility is  located
that such facility  is subject to  the  requirements of this subtitle.
Thereafter,  if a  substance  on the list of extremely hazardous sub-
stances referred to  in subsection (a) first becomes present at such
facility in excess of the threshold planning quantity established for
such substance, or if there  is a revision of such list and the  facility
has present a substance on the revised list in excess of the  thresh-
old planning quantity established for such substance, the owner or
operator of the  facility shall notify  the  State emergency response
commission and  the local emergency planning committee within 60
days after such  acquisition or revision that such facility is  subject
to the requirements of this subtitle.
  (d) NOTIFICATION OF ADMINISTRATOR.—The  State  emergency re-
sponse commission shall notify the Administrator of facilities sub-
ject to the requirements of this subtitle  by notifying the Adminis-
trator of—
      (1) each notification received from  a facility under subsection
    (c), and
      (2)  each facility designated by the Governor or State emer-
    gency response commission under subsection (bX2).
SEC. 305. COMPREHENSIVE EMERGENCY RESPONSE PLANS.
  (a) PLAN  REQUIRED.—Each local emergency  planning committee
shall  complete  preparation of an emergency  plan in accordance
with this  section not later  than two years after the date of the en-
actment of this  title. The committee shall review such plan once a
year, or more frequently as changed circumstances in the commu-
nity or at any facility may  require.
  (b) RESOURCES.—Each local emergency planning committee shall
evaluate  the need for resources necessary to  develop, implement,
and exercise the emergency plan, and shall make recommendations
with respect to  additional  resources that may be required and the
means for providing such additional resources.
  (c) PLAN PROVISIONS.—Each emergency plan shall include (but is
not limited to) each of the following:

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                              173

      (1) Identification of facilities subject to the requirements of
    this subtitle that are within the emergency planning district,
    identification of routes likely to be used for the transportation
    of substances on the list of extremely hazardous substances re-
    ferred to in section 302(a), and identification of additional fa-
    cilities contributing or subjected to additional risk due to their
    proximity to facilities subject to the requirements of this sub-
    title, such as hospitals or natural gas facilities.
      (2) Methods and procedures to be  followed by facility owners
    and operators and local emergency and medical personnel to
    respond to any release of such substances.
      (3) Designation of a community emergency coordinator and
    facility  emergency coordinators, who  shall make determina-
    tions necessary to implement the plan.
      (4) Procedures providing reliable, effective, and timely notifi-
    cation by the facility  emergency coordinators and the commu-
    nity emergency coordinator to persons  designated in the emer-
    gency plan, and to the public, that a release has  occurred (con-
    sistent with the emergency notification requirements of section
    304).
      (5) Methods for determining the occurrence of a release, and
    the area or population likely to be affected by such release.
      (6) A  description of emergency equipment and facilities in
    the community and at each facility in the community subject
    to the requirements  of this subtitle,  and an identification "of
    the persons responsible for such equipment and facilities.
      (7) Evacuation plans,  including provisions for a precaution-
    ary evacuation and alternative traffic routes.
      (8) Training  programs,  including schedules for training of
    local emergency response and medical personnel.
      (9) Methods and schedules for exercising the emergency plan.
  (d) PROVIDING OF INFORMATION.—For  each facility subject to the
requirements of this subtitle:
      (1) Within 30 days after establishment of a load emergency
    planning committee  for the  emergency planning  district in
    which such facility is located, or within 11 months after the
    date of the enactment of this title, whichever  is earlier, the
    owner or operator of the facility shall notify the emergency
    planning committee (or the Governor if there is  no committee)
    of a facility representative who will  participate in the emer-
    gency planning process as a facility  emergency coordinator.
      (2) The owner or  operator of the  facility shiall promptly
    inform  the emergency planning committee of any  relevant
    changes occurring at such facility as such changes occur or are
    expected to occur.
      (3) Upon request from  the emergency planning committee,
    the owner or operator of the facility shall promptly provide in-
    formation to such committee necessary for developing and im-
    plementing the emergency plan.
  (e)  REVIEW  BY THE STATE EMERGENCY RESPONSE COMMISSION.—
After completion of an emergency plan under subsection (a) for an
emergency planning district, the local emergency planning commit-
tee shall submit a copy of the plan to the State emergency response
commission of each State in which such district is located. The

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commission  shall review the plan and make recommendations to
the committee on  revisions  of the plan that may be necessary to
ensure coordination of such plan with emergency response plans of
other emergency planning districts. To the maximum extent practi-
cable, such review shall not delay implementation of such plan.
  (f) GUIDANCE DOCUMENTS.—The national response team, as estab-
lished  pursuant  to  the National Contingency Plan  as  established
under  section 105 of the Comprehensive Environmental Response,
Compensation, and Liability Act of  1980  (42 U.S.C. 9601 et seq.),
shall publish guidance documents for preparation and implementa-
tion of emergency plans.  Such documents shall be published not
later than five months after the date of the enactment of this title.
  (g) REVIEW OF PLANS BY REGIONAL RESPONSE TEAMS.—The region-
al response teams, as established pursuant to the National Contin-
gency Plan as established under section 105 of the Comprehensive
Environmental Response,  Compensation, and Liability Act of 1980
(42 U.S.C. 9601 et  seq.), may review and comment upon an emer-
gency plan or other issues related to preparation, implementation,
or exercise of such a plan upon request of a local emergency plan-
ning committee.  Such review shall not delay implementation of the
plan.
SEC. 304. EMERGENCY NOTIFICATION.
  (a) TYPES OF RELEASES.—
      (1) 302(a) SUBSTANCE WHICH REQUIRES CERCLA NOTICE.—If a re-
    lease of an extremely hazardous substance referred to in sec-
    tion  302(a) occurs from a facility at which a hazardous chemi-
    cal is produced, used,  or stored, and such release requires a no-
    tification under section 103(a) of the  Comprehensive  Environ-
    mental  Response, Compensation, and  Liability Act of 1980
    (hereafter in this section referred to as "CERCLA") (42 U.S.C.
    9601 et  seq.), the owner or operator of the facility shall imme-
    diately provide notice as described in subsection (b).
      (2) OTHER 302 (a)  SUBSTANCE.—If a  release of an extremely
    hazardous substance referred to in section 302(a) occurs from a
    facility  at which a hazardous chemical  is produced, used, or
    stored, and  such release is not  subject to the notification re-
    quirements under section  103(a) of CERCLA, the owner or op-
    erator of the facility shall immediately provide notice as de-
    scribed in subsection (b), but only if the release—
          (A) is not a federally permitted  release as defined in sec-
        tion 101(10) of CERCLA,
          (B) is in an amount in excess of a quantity which the Ad-
        ministrator has determined (by regulation) requires notice,
        and
          (0) occurs in a  manner which would require notification
        under section 103(a) of CERCLA.
    Unless  and until superseded  by regulations  establishing a
    quantity for an  extremely hazardous substance  described  in
    this  paragraph, a quantity of 1 pound shall be deemed that
    quantity the release  of which requires notice as described  in
    subsection (b).
       (3) NON-302 (a) SUBSTANCE WHICH REQUIRES CERCLA NOTICE.—
     If a  release of a substance which is not on the list referred to

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  in section 302(a)  occurs  at  a facility at which a hazardous
  chemical is produced, used, or stored, and such release requires
  notification under section 103(a) of CERCLA, the owner or op-
  erator shall provide notice as follows:
       (A) If the substance is one for which a reportable quanti-
      ty has been established  under section 102(a) of CERCLA,
      the  owner or operator shall provide  notice as described in
      subsection (b).
       (B) If the substance is one for which a reportable quanti-
      ty  has  not been established under  section  102(a)  of
      CERCLA—
            (i) Until April 30,  1988, the owner or operator shall
          provide, for releases of one pound or more of the sub-
          stance, the same notice to the community emergency
          coordinator for the local emergency planning commit-
          tee, at the same time and  in the same form, as notice
          is provided to the National Response Center under sec-
          tion 103(a) of CERCLA.
            (ii) On and after April 30, 1988, the owner or opera-
          tor shall provide, for releases  of one pound or more of
          the substance, the notice as described in subsection (b).
    (4) EXEMPTED RELEASES.—This section  does not apply to any
  release which results in exposure to persons solely within the
  site or sites on which a facility is located.
(b) NOTIFICATION.—
    (1) RECIPIENTS OF NOTICE.—Notice required under subsection
  (a) shall be given immediately after the release by the owner
  or operator of a facility (by such means  as telephone, radio, or
  in person) to the  community emergency coordinator for the
  local emergency planning committees, if established pursuant
  to section 301(c), for any area likely to  be affected by the  re-
  lease and to the State emergency planning commission of any
  State likely to be affected by the release. With respect to trans-
  portation of a substance subject to the requirements of this sec-
  tion, or storage incident to such transportation, the notice re-
  quirements of this section with respect to a release  shall be
  satisfied by dialing 911 or, in the absence of a 911 emergency
  telephone number, calling the operator.
    (2) CONTENTS.—Notice required under  subsection (a)  shall in-
  clude each of the following (to the extent known at the time of
  the notice and so long as no delay in responding to the emer-
  gency results):
        (A) The chemical name or identity of any substance in-
      volved in the release.
        (B) An indication of whether the substance is on the  list
      referred  to in section 302(a).
        (C) An estimate of the quantity  of any such substance
      that was released into the environment.
        (D) The time and duration of the release.
        (E) The  medium or media into  which the release oc-
      curred.
        (F) Any known or anticipated acute  or chronic health
      risks associated with the emergency and, where appropri-

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        ate, advice regarding medical attention necessary for ex-
        posed individuals.
          (G) Proper precautions to take as a result of the release,
        including  evacuation (unless such information  is readily
        available to the community emergency coordinator pursu-
        ant to the emergency plan).
          (H) The name and telephone number of the  person or
        persons to be contacted for further information.
  (c) FOLLOWUP EMERGENCY NOTICE.—As soon as practicable after a
release which requires notice under subsection (a), such owner or
operator shall provide a written followup emergency notice (or no-
tices, as more information becomes available) setting forth and up-
dating the information required under subsection (b), and including
additional information with respect to—
      (1) actions taken to respond to and contain the release,
      (2) any known or anticipated acute or chronic health  risks
    associated with the release, and
      (3) where  appropriate, advice regarding medical attention
    necessary for exposed individuals.
  (d) TRANSPORTATION  EXEMPTION  Nor APPLICABLE.—The exemp-
tion provided in section  327 (relating to transportation) does not
apply to this section.
SEC. 305. EMERGENCY TRAINING AND REVIEW OF EMERGENCY SYSTEMS.
  (a) EMERGENCY TRAINING.—
      (1) PROGRAMS.—Officials of the United States Government
    carrying out existing Federal programs for emergency training
    are authorized to specifically provide training and education
    programs for  Federal, State,  and local  personnel  in hazard
    mitigation,  emergency preparedness,  fire prevention and con-
    trol, disaster response, long-term disaster recovery, national se-
    curity, technological and natural hazards, and emergency proc-
    esses. Such programs shall provide special emphasis for such
    training and education with respect to hazardous chemicals.
      (2) STATE AND LOCAL PROGRAM SUPPORT.—There is authorized
    to be appropriated to the Federal  Emergency Management
    Agency for each of the fiscal years 1987, 1988, 1989, and 1990,
    $5,000,000 for making grants to support programs of State and
    local governments,  and to support  university-sponsored  pro-
    grams, which are designed to improve emergency planning,
    preparedness, mitigation,  response,  and recovery capabilities.
    Such programs shall provide special  emphasis with respect to
    emergencies associated with hazardous chemicals. Such grants
    may not exceed 80 percent  of  the cost of any such program.
    The remaining 20 percent of such costs shall be funded from
    non-Federal sources.
      (3) OTHER  PROGRAMS.—Nothing in  this section shall affect
    the availability of appropriations to the Federal  Emergency
    Management  Agency for any  programs carried out  by such
    agency other than the programs referred to in paragraph (2).
  (b) REVIEW OF EMERGENCY SYSTEMS.—
      (1) REVIEW.—The Administrator shall initiate, not later than
    30 days after the date of the enactment of this title, a review of
    emergency systems for  monitoring, detecting, and preventing

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   releases  of extremely  hazardous substances at  representative
   domestic facilities that produce, use, or store extremely hazard-
   ous substances.  The Administrator may select  representative
   extremely hazardous substances from the  substances on the
   list referred to in section 302(a) for the purposes of this review.
   The Administrator shall  report interim findings to  the Con-
   gress not later  than seven months after such  date  of  enact-
   ment,  and issue a final report of findings and recommenda-
   tions to the Congress not later than 18 months after such date
   of enactment. Such report shall be prepared in consultation
   with the States and appropriate Federal agencies.
     (2) REPORT.—The report required by this subsection shall in-
   clude the Administrator's findings regarding each of the fol-
   lowing:
         (A) The status of current technological capabilities to (i)
       monitor, detect, and prevent,  in a timely manner, signifi-
       cant releases of extremely hazardous substances,  (ii) deter-
       mine the  magnitude and direction of the hazard posed by
       each release, (iii)  identify specific substances, (iv) provide
       data on the specific chemical composition of such releases,
       and  (v) determine the relative concentrations  of the con-
       stituent substances.
         (B) The status of public emergency alert  devices or sys-
       tems for providing timely and effective public warning of
       an accidental release of extremely  hazardous substances
       into the environment, including releases into the atmos-
       phere, surface water,  or grpundwater from facilities that
       produce, store,  or use significant quantities of such ex-
       tremely hazardous substances.
         (C) The technical and economic feasibility of  establish-
       ing,  maintaining,  and operating perimeter alert systems
       for detecting releases or such extremely hazardous sub-
       stances into the atmosphere, surface water, or groundwat-
       er, at facilities that manufacture, use,  or store significant
       quantities of such substances.
     (3) RECOMMENDATIONS.—The report required  by this subsec-
   tion shall  also  include the  Administrator's recommendations
   for-
          (A) initiatives to support the development of new or im-
        proved technologies or  systems  that would facilitate the
        timely monitoring, detection, and prevention of releases of
        extremely hazardous substances, and
          (B) improving devices or systems for effesctively alerting
        the public in a timely manner, in the event of an acciden-
        tal release of such extremely hazardous substances.

              Subtitle B—Reporting Requirements

SEC. 311. MATERIAL SAFETY DATA SHEETS.
  (a) BASIC REQUIREMENT.—
      (1) SUBMISSION OP MSDS OR LIST.—The owner or operator of
    any facility which is  required to prepare or have available a
    material safety data sheet for a hazardous chemical  under the
    Occupational Safety and  Health  Act of 1970 and regulations

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    promulgated under that Act (15 U.S.C. 651 et seq.) shall submit
    a material safety data sheet for each such chemical, or a list of
    such chemicals as described in paragraph (2), to each of the fol-
    lowing:
         (A) The appropriate local emergency planning commit-
        tee.
         (B) The State emergency response commission.
         (C) The fire department with jurisdiction over the facili-
        ty.
     (2) CONTENTS OF LIST.—(A) The list of chemicals referred to in
    paragraph (1) shall include each of the following:
         (i) A list of the hazardous chemicals for which a material
        safety data  sheet  is  required under  the Occupational
        Safety and Health Act of 1970  and  regulations  promulgat-
        ed  under that Act,  grouped in categories of health and
        physical hazards as set forth under such Act and regula-
        tions promulgated under such Act, or in such other catego-
        ries as the Administrator may prescribe under  subpara-
        graph (B).
         (ii) The chemical  name or  the common name of each
        such chemical as provided on the material safety data
        sheet.
         (iii) Any hazardous component of each such chemical as
        provided on the material safety data sheet.
     (B) For purposes of the list under this  paragraph, the Admin-
    istrator may modify the categories  of health and physical haz-
    ards as set forth under the Occupational Safety and Health
    Act of 1970 and regulations promulgated under that Act by re-
    quiring information to be  reported in terms of groups of haz-
    ardous chemicals which present similar hazards in an emer-
    gency.
     (3) TREATMENT OF MIXTURES.—An owner or operator  may
    meet the requirements of this section with respect to a hazard-
    ous chemical which is a mixture by doing one of the following:
         (A) Submitting a material safety  data sheet for, or iden-
        tifying on a list, each element or compound in the mixture
        which is a hazardous chemical. If more than one mixture
        has the same element  or compound,  only one  material
        safety data sheet, or one listing, of the element or com-
        pound is necessary.
         (B) Submitting a material safety  data sheet for, or iden-
        tifying on a list, the mixture itself.
  (b) THRESHOLDS.—The Administrator may establish threshold
quantities for hazardous chemicals below which no facility shall be
subject  to the provisions of this section. The threshold quantities
may, in the Administrator's  discretion, be based on classes of
chemicals or categories of facilities.
  (c) AVAILABILITY OP MSDS ON REQUEST.—
      (1) TO LOCAL EMERGENCY PLANNING COMMITTEE.—If an Owner
    or  operator of a  facility submits a  list of chemicals under sub-
    section (aXl), the owner  or operator, upon request by the local
    emergency planning committee,  shall submit  the  material
    safety data sheet for any chemical on the list to such commit-
    tee.

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      (2) To PUBLIC.—A local emergency planning committee, upon
    request by any person, shall make available a material  safety
    data sheet to the person in accordance with section 324.  If the
    local emergency planning committee does not  have the re-
    quested material safety data sheet, the committee shall request
    the sheet from the facility owner or operator and then  make
    the sheet available to the person in  accordance with section
    324.
  (d) INITIAL SUBMISSION AND UPDATING.—(1) The initial material
safety data sheet or list required under this section with respect to
a hazardous chemical shall be provided before the  later of—
      (A) 12 months after the date of the enactment of this title, or
      (B) 3 months after the owner or operator of a facility is re-
    quired to  prepare or have available a material safety data
    sheet for  the chemical under  the Occupational Safety and
    Health Act  of 1970  and regulations promulgated under that
    Act.
  (2) Within 3 months following discovery by an owner or operator
of significant new information concerning an aspect of a hazardous
chemical for which a material safety data sheet was previously sub-
mitted to the local emergency planning committee  under subsec-
tion (a), a revised sheet shall be provided to such person.
  (e) HAZARDOUS CHEMICAL DEFINED.—For purposes of this section,
the term "hazardous chemical" has the meaning given such term
by section 1910.120(Xc) of title 29 of  the Code of Federal Regula-
tions, except that such  term does not include the following:
      (1) Any food, food  additive, color  additive, drug, or cosmetic
    regulated by the Food and Drug Administration.
      (2) Any substance present  as  a solid in any  manufactured
    item to  the extent exposure  to the substance does  not occur
    under normal conditions of use.
      (3) Any substance to  the  extent it  is used  for personal,
    family, or household purposes, or is present in the same form
    and  concentration as a product packaged for distribution and
    use by the general public.
      (4) Any substance to the extent it is used in a  research labo-
    ratory or a  hospital  or other medical facility under  the direct
    supervision of a technically qualified individual.
      (5) Any substance  to the extent it is used in routine agricul-
    tural operations or is a fertilizer held for sale by a retailer to
    the ultimate customer.
SEC. 312.  EMERGENCY AND HAZARDOUS  CHEMICAL INVENTORY FORMS.
  (a) BASIC REQUIREMENT.—(1) The owner or operator of any facili-
ty which is required to prepare or have available a material safety
data sheet for a hazardous chemical under the Occupational Safety
and Health Act of 1970 and regulations promulgated under that
Act shall prepare and submit an emergency and  hazardous  chemi-
cal inventory form (hereafter in this title referred to as an "inven-
tory form") to each of the following:
      (A) The appropriate local emergency planning  committee.
      (B) The State emergency response commission.
      (C) The fire department with jurisdiction over the facility.

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  (2) The inventory form containing tier I information (as described
in subsection (dXl)) shall be submitted on or before March 1, 1988,
and annually thereafter on March 1, and shall contain data with
respect to the preceding calendar year.
  (3) An owner or operator may meet the requirements of this sec-
tion  with  respect to  a hazardous chemical which is a mixture by
doing one  of the following:
      (A)  Providing information on the inventory form on each ele-
    ment  or compound in the mixture which is a hazardous chemi-
    cal. If more than one mixture has the same element  or com-
    pound, only one  listing on the inventory form for the element
    or compound at the facility is necessary.
      (B)  Providing information on the inventory form on the mix-
    ture itself.
  (b)  THRESHOLDS.—The  Administrator  may  establish  threshold
quantities for hazardous  chemicals covered by this section below
which no  facility shall be  subject to the provisions of this section.
The threshold quantities may, in the Administrator's discretion, be
based on classes of chemicals or categories of facilities.
  (c) HAZARDOUS CHEMICALS COVERED.—A hazardous chemical sub-
ject to the requirements of this section is any hazardous chemical
for which  a material  safety data sheet or a listing is required under
section 311.
  (d) CONTENTS OF FORM.—
      (1) TIER I INFORMATION.—
          (A) AGGREGATE INFORMATION BY CATEGORY.—An  invento-
        ry form shall provide the information  described in sub-
        paragraph (B) in aggregate terms for hazardous chemicals
        in categories of health and physical hazards as set forth
        under the Occupational Safety and Health Act of 1970 and
        regulations promulgated under that Act.
          (B)  REQUIRED INFORMATION.—The  information  referred
        to in subparagraph (A) is the following:
              (i) An  estimate (in ranges) of the maximum amount
            of hazardous chemicals in each category present at the
            facility  at any time  during the preceding  calendar
            year.
              (ii) An  estimate  (in ranges) of the  average daily
            amount   of  hazardous chemicals  in each  category
            present  at the facility during the preceding calendar
            year.
              (iii) The general location  of hazardous chemicals in
            each category.
          (O  MODIFICATIONS.—For purposes of reporting informa-
        tion under this paragraph, the Administrator may—
              (i) modify the categories of health and physical haz-
            ards as  set forth under the Occupational Safety and
            Health Act of 1970 and regulations promulgated under
            that Act  by requiring information  to be reported in
            terms of groups of hazardous chemicals which present
            similar hazards in an emergency, or
              (ii) require reporting on individual hazardous chemi-
            cals of special concern to emergency response person-
            nel.

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                           181

    (2) TIER ii INFORMATION.—An inventory form shall provide
  the following additional information for each hazardous chemi-
  cal present at the facility, but only upon request and in accord-
  ance with subsection (e):
        (A) The chemical name or the common name  of the
      chemical as provided on the material safety data sheet.
        (B) An estimate (in ranges) of the maximum amount of
      the hazardous chemical present at the facility at any time
      during the preceding calendar year.
        (C) An estimate (in ranges)  of the average daily amount
      of the hazardous  chemical present at the facility  during
      the preceding calendar year.
        (D) A  brief description of the manner of storage of the
      hazardous chemical.
        (E) The location at the facility of the hazardous chemi-
      cal.
        (F) An indication of whether the owner elects to with-
      hold  location information of a specific hazardous chemical
      from disclosure to the public under section 324.
(e) AVAILABILITY OF TIER II INFORMATION.—
    (1) AVAILABILITY TO STATE COMMISSIONS, LOCAL  COMMITTEES,
  AND FIRE DEPARTMENTS.—Upon request by a  State emergency
  planning commission, a local emergency planning committee,
  or a fire department with jurisdiction over the  facility, the
  owner or operator of a facility shall provide tier II  information,
  as described in  subsection  (d), to the  person making  the re-
  quest. Any such request shall be with respect to a specific facil-
  ity.
    (2) AVAILABILITY TO OTHER STATE AND LOCAL OFFICIALS.—A
  State or local official acting  in his or her official capacity may
  have access  to tier II information by submitting  a request to
  the State emergency  response commission or the local emer-
  gency planning committee. Upon receipt of a request for tier II
  information, the State commission or local  committee shall,
  pursuant to  paragraph (1), request the facility owner or opera-
  tor for the tier II information and make available such infor-
  mation to the official.
    (3) AVAILABILITY TO PUBLIC.—
        (A) IN GENERAL.—Any person may request a State emer-
      gency response commission  or local emergency planning
      committee for tier II information relating to the preceding
      calendar year with respect to a facility. Any  such request
      shall be in writing and shall be with respect to a specific
      facility.
        (B) AUTOMATIC PROVISION  OF INFORMATION  TO PUBLIC.—
      Any tier H information  which a State emergency response
      commission  or local emergency planning committee has in
      its possession shall be made available to a person  making
      a request under this paragraph in accordance with section
      324.  If the State  emergency response commission or local
      emergency planning committee does  not ha.ve the tier II
      information in its possession, upon a request  for tier II in-
      formation the State emergency  response  commission or
      local emergency  planning committee shall,  pursuant to

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        paragraph (1), request  the  facility owner or  operator for
        tier II  information with respect to  a hazardous chemical
        which  a  facility has stored  in  an  amount  in excess of
        10,000  pounds present  at the facility at  any  time during
        the preceding calendar year  and make such information
        available in  accordance with section 324  to the person
        making the request.
          (C)   DISCRETIONARY  PROVISION   OF  INFORMATION   TO
        PUBLIC.—In the case of tier II information which is not in
        the possession of a State emergency response commission
        or local emergency planning committee and which is with
        respect to a hazardous chemical which a facility has stored
        in an amount less than 10,000 pounds present at the facili-
        ty at any time during  the  preceding calendar year, a re-
        quest from a  person must include the general need for the
        information. The State  emergency response commission or
        local emergency planning  committee may,  pursuant to
        paragraph (1), request  the  facility owner or  operator  for
        the tier II information  on behalf of the person making the
        request. Upon  receipt  of any  information requested on
        behalf  of such person, the State emergency response com-
        mission or  local emergency  planning  committee shall
        make the information available in accordance with section
        324 to the person.
          (D) RESPONSE IN  45 DAYS.—A State emergency  response
        commission or local emergency planning committee shall
        respond to  a request for tier  II information under  this
        paragraph no later than  45 days after the date of receipt
        of the request.
  (f) FIRE DEPARTMENT ACCESS.—Upon request to an owner or oper-
ator of a facility which files an inventory form under this section
by the fire department with jurisdiction over the facility, the owner
or operator of the facility shall allow the fire department to  con-
duct an on-site inspection of the  facility  and shall provide to the
fire department specific location information on hazardous chemi-
cals at the facility.
  (g) FORMAT OF  FORMS.—The  Administrator shall publish a  uni-
form format for  inventory forms within three months after the
date of  the enactment of this title. If the Administrator  does not
publish  such forms, owners and operators  of facilities subject to the
requirements of this section shall provide the information required
under this section by letter.
SEC. 313. TOXIC CHEMICAL RELEASE FORMS.
  (a) BASIC REQUIREMENT.—The owner or operator of a facility sub-
ject to the requirements of this  section shall  complete  a toxic chem-
ical  release form as published  under subsection  (g) for each toxic
chemical listed under subsection  (c) that  was manufactured, proc-
essed, or otherwise used in quantities exceeding the toxic  chemical
threshold quantity established by subsection (f) during the preced-
ing calendar year at such facility. Such form shall be submitted to
the Administrator and to an official or officials of the State desig-
nated by  the  Governor on or  before July  1, 1988, and  annually

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thereafter on  July 1 and shall  contain  data reflecting  releases
during the preceding calendar year.
  (b) COVERED OWNERS AND OPERATORS OF FACILITIES.—
      (1) IN GENERAL.—(A) The requirements  of this  section shall
    apply to owners and operators  of  facilities that have 10 or
    more full-time employees and that are in Standard Industrial
    Classification Codes 20 through 39 (as  in effect  on  July 1, 1985)
    and that manufactured, processed,  or otherwise  used  a toxic
    chemical listed under subsection  (c) in excess of the quantity of
    that toxic  chemical established under  subsection (f) during the
    calendar year for which a release form is required under this
    section.
      (B) The Administrator may  add or delete Standard Industrial
    Classification Codes for purposes of subparagraph  (A), but only
    to the extent necessary to provide that each Standard Industri-
    al Code to which this section applies is relevant to the pur-
    poses of this section.
      (C) For purposes of this section—
          (i) The term "manufacture" means to produce,  prepare,
        import, or compound a toxic  chemical.
          (ii) The term "process"  means the preparation of a toxic
        chemical, after its manufacture,  for distribution in com-
        merce—
              (I) in the same form or physical state as, or in a dif-
            ferent form  or physical  state from, that in which it
            was  received by the  person so preparing such chemi-
            cal, or
              (II) as part of an article containing  the toxic chemi-
            cal.
      (2) DISCRETIONARY APPLICATION TO  ADDITIONAL  FACILITIES.—
    The Administrator, on his  own  motion or at the request of a
    Governor  of a State (with  regard to  facilities located in that
    State), may  apply  the requirements of this section to the
    owners and operators of any particular facility that manufac-
    tures, processes,  or otherwise  uses  a toxic  chemical  listed
    under subsection (c) if the Administrator determines that such
    action is warranted on the basis of  toxicity of  the toxic chemi-
    cal, proximity to other facilities that release the toxic chemical
    or to population centers, the  history of releases of such chemi-
    cal at such facility, or such other factors as the Administrator
    deems appropriate.
  (c)  Toxic  CHEMICALS  COVERED.—The  toxic chemicals subject to
the requirements of this section are those chemicals on the list in
Committee Print Number 99-169  of the  Senate Committee on Envi-
ronment and Public Works, titled "Toxic Chemicals Subject to Sec-
tion 313 of the  Emergency Planning  and Community Right-To-
Know Act of 1986" (including any revised  version of the list as may
be made pursuant to subsection (d) or (e)).
  (d) REVISIONS BY ADMINISTRATOR.—
      (1)  IN GENERAL.—The Administrator  may  by rule add  or
    delete a chemical from the list described in  subsection (c) at
    any time.

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   (2) ADDITIONS.—A chemical may be added if the Administra-
  tor determines, in his judgment, that there  is sufficient evi-
  dence to establish any one of the following:
       (A) The chemical is known to cause or can reasonably be
     anticipated to  cause significant  adverse  acute  human
     health effects at concentration levels that are reasonably
     likely to exist beyond facility site boundaries as a result of
     continuous, or frequently recurring, releases.
       (B) The chemical is known to cause or can reasonably be
     anticipated to cause in humans—
           (i) cancer or teratogenic effects, or
           (ii) serious or irreversible—
               (I) reproductive dysfunctions,
               (II) neurological disorders,
               (III) heritable  genetic mutations, or
               (IV) other chronic health effects.
       (C) The chemical is known to cause or can reasonably be
     anticipated to cause, because of—
           (i) its toxicity,
           (ii) its toxicity and persistence in the environment,
          or
           (iii)  its toxicity and tendency to bioaccumulate in
          the environment,
     a significant  adverse effect on the environment of suffi-
     cient seriousness, in the judgment  of the Administrator, to
     warrant  reporting  under  this  section.  The  number of
     chemicals  included on the list described in subsection (c)
     on  the  basis of the preceding sentence may constitute in
     the aggregate no more than 25 percent of the total  number
     of chemicals on the list.
  A determination under this paragraph shall be based on gener-
  ally accepted scientific principles or laboratory tests, or appro-
  priately designed and conducted epidemiological or other popu-
  lation studies, available to the Administrator.
    (3) DELETIONS.—A chemical may be deleted if the Adminis-
  trator determines there is not sufficient evidence to establish
  any of the criteria described in paragraph (2).
    (4) EFFECTIVE DATE.—Any  revision made on or after January
  1 and before December 1 of any calendar year shall take effect
  beginning with the next calendar year. Any  revision made on
  or after December 1 and before January 1 shall take effect be-
  ginning with the calendar  year following the next calendar
  year.
(e) PETITIONS.—
    (1) IN GENERAL.—Any person may petition the Administrator
  to add or delete a chemical  from the list describee!  in subsec-
  tion (c) on the basis of the criteria in subparagraph (A) or (B) of
  subsection (dX2). Within 180 days after receipt of a petition, the
  Administrator shall take one of the following actions:
        (A) Initiate a rulemaking to add or  delete the chemical
      to  the list,  in accordance with subsection  (dX2).
        (B) Publish an explanation of why the  petition is denied.
    (2) GOVERNOR PETITIONS.—A State Governor may petition the
  Administrator  to  add  or delete a chemical  from the list de-

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  scribed in subsection (c) on the basis of the criteria in subpara-
  graph (A), (B), or (C) of subsection (d)(2). In the case of such a
  petition from a State Governor to delete a  chemical, the peti-
  tion shall be treated in the same manner as a petition received
  under paragraph (1) to delete a chemical. In the case of such a
  petition from a State Governor to add a chemical, the chemical
  will be added to the  list within 180 days after receipt of the
  petition, unless the Administrator—
        (A) initiates  a  rulemaking to add the chemical to the
      list, in accordance with subsection (dX2), or
        (B) publishes an explanation of why  the Administrator
      believes the petition  does not meet the requirements of
      subsection (dX2) for adding a chemical to the list.
(f) THRESHOLD FOR REPORTING.—
    (1)  Toxic  CHEMICAL THRESHOLD  AMOUNT.—The  threshold
  amounts for purposes of reporting toxic chemicals under this
  section are as follows:
        (A) With respect to a  toxic chemical used at a facility,
      10,000 pounds  of the toxic chemical per year.
        (B) With respect to a toxic  chemical manufactured or
      processed at a facility—
            (i) For the toxic chemical release form required to be
          submitted under this section on or before July 1, 1988,
          75,000 pounds of the toxic chemical  per year.
            (ii) For  the form  required  to  be submitted  on or
          before July 1, 1989,  50,000 pounds  of the toxic chemi-
          cal per year.
            (iii) For  the  form required  to be submitted  on or
          before July  1, 1990, and  for each form  thereafter,
          25,000 pounds of the toxic chemical  per year.
    (2) REVISIONS.—The Administrator may establish a threshold
  amount for a toxic chemical different from the amount estab-
  lished by paragraph (1). Such revised threshold shall obtain re-
  porting on a substantial majority of total releases of the chemi-
  cal at all facilities subject to the requirements of this section.
  The amounts established under this paragraph  may, at the Ad-
  ministrator's discretion, be based on  classes of chemicals or
  categories of facilities.
(g) FORM.—
    (1) INFORMATION REQUIRED.—Not later than June  1, 1987, the
  Administrator shall publish  a uniform toxic chemical release
  form for facilities  covered by this section. If the Administrator
  does not publish such a form, owners and operators of facilities
  subject to the requirements of this section shall provide the in-
  formation required under this subsection by letter postmarked
  on or before the  date on  which the form  is  due. Such form
  shall—
        (A) provide  for the name and location of,  and principal
      business activities at, the facility;
        (B) include  an appropriate certification,  signed  by a
      senior official with  management responsibility for the
      person or persons completing the report, regarding the ac-
      curacy and completeness of the report; and

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          (C) provide for submission of each of the following items
        of information for each listed toxic  chemical known to be
        present at the facility:
              (i) Whether the toxic  chemical at the facility is man-
            ufactured, processed, or otherwise used, and the gener-
            al category or categories of use of the chemical.
              (ii)  An  estimate of the maximum  amounts  (in
            ranges) of the toxic chemical present at the facility at
            any time during the preceding calendar year.
              (iii) For each wastestream, the waste treatment or
            disposal methods employed, and an estimate of the
            treatment efficiency typically achieved by such meth-
            ods for that wastestream.
              (iv) The annual quantity of the toxic chemical enter-
            ing each environmental medium.
      (2) USE OF AVAILABLE DATA.—In order to provide the informa-
    tion required under this section, the owner or operator of a fa-
    cility  may use readily  available data  (including monitoring
    data)  collected pursuant  to other provisions of law, or, where
    such data are not readily available,  reasonable estimates of the
    amounts involved. Nothing in this  section requires the moni-
    toring or measurement of the quantities, concentration, or fre-
    quency  of any  toxic chemical  released  into  the  environment
    beyond  that monitoring  and  measurement required under
    other provisions of law or  regulation. In  order to assure  con-
    sistency, the Administrator  shall  require  that  data be  ex-
    pressea  in common units.
  (h)  USE OF RELEASE  FORM.—The release  forms required  under
this section  are intended to provide  information to  the Federal,
State, and local  governments and the public, including citizens of
communities surrounding covered facilities.  The release form shall
be available, consistent with section 324(a), to inform persons about
releases of toxic chemicals  to  the  environment; to assist govern-
mental agencies, researchers, and other persons in the conduct of
research and data gathering; to aid  in the development of appropri-
ate regulations,  guidelines, and standards;  and  for other similar
purposes.
  (i) MODIFICATIONS IN REPORTING FREQUENCY.—
      (1)  IN "GENERAL.—The Administrator  may modify the  fre-
    quency  of submitting a report  under this section, but the  Ad-
    ministrator  may not modify the  frequency to be any  more
    often than annually. A modification may apply, either nation-
    ally or in a specific geographic area, to the following:
          (A) All toxic chemical release forms required under  this
        section.
          (B) A class of toxic chemicals or  a  category of facilities.
          (C) A  specific toxic chemical.
          (D) A specific facility.
      (2)  REQUIREMENTS.—A modification  may be  made under
    paragraph (1) only if the Administrator—
          (A) makes a  finding that the modification is consistent
        with the provisions of subsection (h), based on—
              (i) experience from previously submitted toxic chem-
            ical release forms, and

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             (ii) determinations made under paragraph (3), and
         (B) the finding is made by a rulemaking in accordance
       with section 553 of title 5, United States Code.
      (3) DETERMINATIONS.—The Administrator shall make the fol-
    lowing determinations with respect to a proposed modification
    before making a modification under paragraph (1):
         (A) The extent to which information relating to the pro-
       posed modification provided on the toxic chemical release
       forms has been used by  the Administrator or other  agen-
       cies of the Federal Government, States, local governments,
       health professionals, and the public.
         (B) The extent to which the information is (i) readily
       available to  potential  users  from other sources, such as
       State reporting programs, and (ii) provided to the Adminis-
       trator under another Federal law or through a State pro-
       gram.
         (C) The extent to which the modification would impose
       additional and unreasonable burdens  on  facilities subject
       to the reporting requirements under this section.
      (4) 5-YEAR REVIEW.—Any modification made under this sub-
    section shall be  reviewed  at least once every  5 years. Such
    review shall examine the modification and ensure that the re-
    quirements of paragraphs  (2) and (3) still  justify continuation
    of the  modification.  Any  change to a modification reviewed
    under this  paragraph shall be made in accordance with  this
    subsection.
      (5)  NOTIFICATION  TO CONGRESS.—The  Administrator  shall
    notify Congress of an intention to initiate a rulemaking for a
    modification under this subsection. After such notification, the
    Administrator shall delay initiation of the rulemaking for at
    least 12 months, but no more than 24 months, after the date of
    such notification.
      (6) JUDICIAL REVIEW.—In any judicial review of a rulemaking
    which establishes a modification under this subsection, a court
    may hold unlawful and set aside agency  action, findings,  and
    conclusions found to be unsupported by substantial evidence.
      (7) APPLICABILITY.—A modification under this subsection may
    apply to a  calendar year or other reporting period beginning
    no earlier than January 1, 1993.
      (8) EFFECTIVE DATE.—Any modification made on or after Jan-
    uary 1 and before December 1 of any calendar year shall take
    effect beginning with the next calendar year. Any modification
    made on or after December 1 and before January 1 shall take
    effect beginning with the calendar year  following such next
    calendar year.
  (j) EPA MANAGEMENT OF DATA.—The Administrator shall  estab-
lish and maintain in a computer data base a national toxic chemi-
cal inventory based on data submitted to the  Administrator  under
this section. The Administrator shall  make these data accessible by
computer telecommunication and other means to any person on a
cost reimbursable basis.
  (k) REPORT.—Not later than  June 30, 1991, the Comptroller Gen-
eral, in consultation with the Administrator  and appropriate offi-

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cials in the States, shall submit to the Congress a report including
each of the following:
      (DA description of the steps taken by the Administrator and
    the States to implement the requirements of this section, in-
    cluding steps taken to make information  collected  under this
    section available to and accessible by the public.
      (2) A description of the extent to  which  the information col-
    lected under this section has been used by the Environmental
    Protection Agency, other Federal agencies, the States, and the
    public, and the purposes for which the information has been
    used.
      (3) An  identification and evaluation  of options for modifica-
    tions to  the requirements  of this section for the  purpose  of
    making information collected under  this section more useful.
  (1) MASS BALANCE STUDY.—
      (1) IN GENERAL.—The Administrator shall arrange for a mass
    balance study to be  carried out by the National Academy of
    Sciences  using mass  balance information  collected  by the Ad-
    ministrator  under  paragraph  (3).  The   Administrator  shall
    submit to Congress a report on such study no later than 5
    years after the date of the enactment of this title.
      (2) PURPOSES.—The purposes of the study are as follows:
          (A) To assess the value of mass balance anatysis in deter-
        mining the accuracy of information on toxic chemical re-
        leases.
          (B) To assess the  value of obtaining mass  balance  infor-
        mation, or portions  thereof,  to determine the waste reduc-
        tion  efficiency of different facilities, or categories of  facili-
        ties,  including the effectiveness of toxic chemical regula-
        tions promulgated under laws other than this title.
          (C) To assess the utility of such information for evaluat-
        ing toxic chemical  management practices at facilities,  or
        categories of facilities, covered by this  section.
          (D) To determine  the implications of mass balance  infor-
        mation collection on a national scale similar to the mass
        balance information collection carried out by the Adminis-
        trator under paragraph (3), including implications of the
        use of such collection as part of a national annual quantity
        toxic chemical release program.
      (3) INFORMATION COLLECTION.—(A) The  Administrator shall
    acquire available mass balance information from States which
    currently conduct (or during the 5  years  after the date  of en-
    actment  of this title  initiate) a mass balance-oriented annual
    quantity toxic chemical release program.  If  information from
    such States provides an inadequate representation of industry
    classes and categories to carry out the purposes of the study,
    the Administrator also  may acquire mass balance information
    necessary for the study  from a representative number of facili-
    ties in other States.
      (B) Any information  acquired under  this section shall  be
    available to the public, except that upon a showing satisfactory
    to the Administrator by any person that  the information (or a
    particular part thereof) to which the Administrator or any offi-
     cer,  employee, or representative has access under  this section

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    if made public would divulge information entitled to protection
    under section  1905 of title  18, United States Code, such infor-
    mation or part shall be considered confidential  in accordance
    with the purposes of that section, except that such information
    or part may  be disclosed to other officers, employees, or au-
    thorized representatives of the United States  concerned with
    carrying out this section.
      (C) The Administrator may promulgate regulations prescrib-
    ing procedures for collecting  mass balance information  under
    this paragraph.
      (D)  For purposes  of collecting  mass  balance information
    under subparagraph (A), the Administrator may require the
    submission of information by a State or facility.
      (4) MASS BALANCE DEFINITION.—For purposes of this subsec-
    tion, the term "mass  balance" means an accumulation  of the
    annual quantities of chemicals transported to a facility, pro-
    duced at  a  facility,  consumed at a facility, used at a facility,
    accumulated at a facility, released from a facility, and  trans-
    ported from a  facility  as a waste or as a commercial product or
    byproduct or component of  a commercial product or byproduct.

                 Subtitle C—General Provisions

SEC. 321. RELATIONSHIP TO OTHER LAW.
  (a) IN GENERAL.—Nothing in this title shall—
      (1) preempt any State or local law,
      (2) except as provided in  subsection (b), otherwise affect any
    State or local law or the authority of any State or local govern-
    ment to adopt or enforce any State or local law, or
      (3) affect or modify in any way the obligations or liabilities of
    any person under other Federal law.
  (b) EFFECT ON MSDS REQUIREMENTS.—
      (1) Any State or local law enacted  after  August 1,  1985,
    which requires the submission of a material safety data sheet
    from facility  owners or operators  shall require that the data
    sheet be identical in content and format to the data sheet re-
    quired under subsection (a) of section 311. In addition, a State
    or locality may require the submission of information which is
    supplemental  to the  information  required on the data sheet
    (including information on the location and quantity of hazard-
    ous  chemicals present  at the facility), through  additional
    sheets attached to the data sheet  or such other means  as the
    State or locality considers appropriate.
      (2) If any State or local law—
          (A) is enacted after August 1, 1985, and
          (B) requires such a facility owner or operator who sup-
        plies a hazardous chemical  to any other facility owner or
        operator to furnish  a  material  safety data sheet to such
        other facility owner or operator,
    such requirements shall be identical to the requirements under
    section 31 Ha).
SEC. 322. TRADE SECRETS.
  (a) AUTHORITY To WITHHOLD INFORMATION.—

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      (1) GENERAL AUTHORITY.—(A) With regard to a  hazardous
    chemical, an extremely hazardous substance, or a toxic chemi-
    cal, any person required under section 303(dX2), 303(dX3), 311,
    312, or 313 to submit  information to any  other person may
    withhold from such submittal the specific chemical identity (in-
    cluding the chemical name and other specific identification), as
    defined in regulations prescribed by  the Administrator  under
    subsection (c), if the  person complies with paragraph (2).
      (B) Any person withholding the specific chemical  identity
    shall, in the place on the submittal where the chemical identi-
    ty would normally be included, include the generic class or cat-
    egory  of the  hazardous chemical, extremely  hazardous sub-
    stance, or toxic chemical (as the case may be).
      (2) REQUIREMENTS.—(A) A person is entitled to withhold in-
    formation under paragraph (1) if such person—
         (i) claims that such information is a trade secret, on the
        basis of the factors enumerated in subsection (b),
         (ii) includes in the submittal referred  to in paragraph (1)
        an explanation  of  the reasons why such  information  is
        claimed to be a  trade secret, based on the  factors  enumer-
        ated in subsection  (b), including a  specific  description  of
        why such factors apply, and
         (iii) submits to the Administrator a copy of such submit-
        tal, and the information withheld from such submittal.
      (B) In submitting to  the Administrator the  information re-
    quired by subparagraph (AXiii), a person withholding  informa-
    tion under this subsection may—
         (i) designate, in writing and  in such  manner as the Ad-
        ministrator may prescribe by regulation, the information
        which  such person believes is  entitled  to be withheld
        under paragraph (1), and
         (ii) submit such designated information  separately from
        other information submitted under this  subsection.
      (3) LIMITATION.—The  authority under this subsection to with-
    hold information shall not apply to information  which the Ad-
    ministrator has determined, in accordance  with subsection (c),
    is not a  trade secret.
  (b) TRADE  SECRET FACTORS.—No person required to provide infor-
mation under this title  may claim that the information is entitled
to protection as a  trade secret  under subsection (a)  unless such
person shows each of the following:
      (1) Such person has  not disclosed the information to any
    other person, other  than a member of a local emergency plan-
    ning committee, an  officer or employee of the United  States or
    a State  or local government, an employee of such  person, or a
    person who is bound by a confidentiality agreement,  and such
    person has taken reasonable measures to protect the  confiden-
    tiality  of such information  and intends to continue to  take
    such measures.
      (2) The information is not required to be disclosed,  or other-
    wise made available, to the public under any other Federal or
    State law.
      (3) Disclosure of the information is likely  to cause substantial
    harm to the competitive position of such person.

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      (4) The chemical identity is not readily discoverable through
    reverse engineering.
  (c) TRADE SECRET REGULATIONS.—As soon as practicable after the
date of enactment of this title, the Administrator shall prescribe
regulations to implement this  section. With respect to subsection
(bX4), such regulations shall be  equivalent to comparable provisions
in the  Occupational  Safety  and  Health Administration  Hazard
Communication Standard (29 C.F.R. 1910.1200) and any revisions of
such standard prescribed by  the Secretary of Labor in accordance
with the final ruling  of the courts of the United States in United
Steelworkers of America, AFL-CIO-CLC v. Thome G. Auchter.
  (d) PETITION FOR REVIEW.—
      (1) IN GENERAL.—Any person may petition the Administrator
    for the disclosure of  the specific chemical identity of a hazard-
    ous chemical, an extremely hazardous substance,  or a toxic
    chemical which is claimed as a trade secret under this section.
    The Administrator may, in the absence of a petition under this
    paragraph, initiate a determination,  to be carried out in ac-
    cordance with this subsection, as to whether information with-
    held constitutes a trade secret.
      (2) INITIAL REVIEW.—Within 30 days after the date of receipt
    of a petition under paragraph (1) (or upon the Administrator's
    initiative), the Administrator shall review the explanation filed
    by a trade secret claimant under subsection  (aX2) and deter-
    mine whether the explanation presents  assertions which, if
    true, are sufficient to support a finding that the specific chemi-
    cal identity is a trade secret.
      (3) FINDING OF SUFFICIENT ASSERTIONS.—
          (A) If the Administrator determines pursuant to para-
        graph (2)  that the explanation  presents  sufficient asser-
        tions to support  a finding that the specific chemical identi-
        ty is  a trade secret, the  Administrator  shall notify the
        trade secret claimant that he has 30  days to supplement
        the explanation  with detailed information to  support the
        assertions.
          (B) If the Administrator determines, after receipt of any
        supplemental supporting  detailed information  under sub-
        paragraph (A), that  the assertions in  the explanation are
        true and  that the specific chemical  identity  is  a  trade
        secret, the Administrator shall so notify the petitioner and
        the petitioner may seek judicial  review of the determina-
        tion.
          (C) If the Administrator determines, after receipt of any
        supplemental supporting  detailed information  under sub-
        paragraph (A), that  the assertions in  the explanation are
        not true and that the specific chemical identity is not a
        trade secret,  the Administrator shall  notify the  trade
        secret claimant  that the Administrator intends to release
        the specific chemical  identity. The trade  secret  claimant
        has 30 days  in which  he may appeal the  Administrator's
        determination under this subparagraph to  the Administra-
        tor. If the Administrator does not reverse his determina-
        tion under this  subparagraph in such an appeal by the

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        trade secret claimant, the trade secret claimaint may seek
        judicial review of the determination.
      (4) FINDING OF INSUFFICIENT ASSERTIONS.—
          (A) If the  Administrator determines pursuant to para-
        graph (2) that the explanation presents insufficient asser-
        tions to support a finding that the specific chemical identi-
        ty is a  trade  secret,  the  Administrator  shall notify the
        trade secret claimant that he has 30 days to appeal the de-
        termination to the Administrator, or, upon a showing of
        good cause, amend the original explanation by providing
        supplementary  assertions  to  support the trade  secret
        claim.
          (B) If the Administrator does not reverse his determina-
        tion under subparagraph (A) after an appeal or an exami-
        nation  of any supplementary assertions  under subpara-
        graph (A),  the Administrator shall so notify the trade
        secret claimant and the trade secret claimant may seek ju-
        dicial review of the determination.
          (C)  If  the  Administrator  reverses  his determination
        under subparagraph (A) after an appeal or an examination
        of any supplementary assertions under subparagraph (A),
        the procedures under paragraph (3)  of  this  subsection
        apply.
  (e) EXCEPTION FOR  INFORMATION  PROVIDED TO  HEALTH PROFES-
SIONALS.—Nothing in this section, or regulations adoptiid pursuant
to this section, shall authorize any person to withhold information
which is required to be provided to a health professional, a doctor,
or a nurse in accordance with section 323.
  (f) PROVIDING INFORMATION TO THE ADMINISTRATOR; AVAILABILITY
TO  PUBLIC.—Any  information submitted to the Administrator
under subsection (aX2) or subsection (dX3) (except a specific chemi-
cal identity) shall be available to the public, except that  upon a
showing satisfactory to the Administrator by any person that the
information (or a particular part thereof) to which the Administra-
tor has access under this section if made public would divulge in-
formation entitled to protection under section 1905 of  title  18,
United  States Code,  such information or  part shall be considered
confidential in accordance with the purposes of that section, except
that such information or part may be  disclosed  to other officers,
employees, or authorized representatives of the United States con-
cerned with carrying out this title.
  (g) INFORMATION PROVIDED TO STATE.—Upon request by a State,
acting through the Governor of the State, the Administrator shall
provide to the State any  information  obtained under subsection
(aX2) and subsection (dX3).
  (h) INFORMATION ON ADVERSE EFFECTS.—(1) In any case in which
the identity of a hazardous  chemical or an extremely hazardous
substance is claimed as a trade secret, the Governor or State emer-
gency  response commission  established  under section  301 shall
identify the adverse health effects associated with the hazardous
chemical or extremely hazardous substance and  shall assure that
such information is provided to any person requesting information
about such hazardous chemical or extremely hazardous substance.

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  (2) In  any case in which  the identity of a  toxic chemical is
claimed as a trade secret, the Administrator shall identify the ad-
verse health and environmental effects associated with  the toxic
chemical and shall assure that such information is included in the
computer database required by section 313(j) and is provided to any
person requesting information about such toxic chemical.
  (i) INFORMATION PROVIDED  TO CONGRESS.—Notwithstanding any
limitation contained in this section or  any other provision of law,
all information reported  to or otherwise obtained by the Adminis-
trator (or any representative  of the Administrator) under this title
shall be made available to a duly authorized committee of the Con-
gress upon written request by such a committee.
SEC. 323.  PROVISION OF INFORMATION TO HEALTH  PROFESSIONALS,
           DOCTORS, AND NURSES.
  (a)  DIAGNOSIS OR TREATMENT BY HEALTH PROFESSIONAL.—An
owner or operator of a facility which is subject to the requirements
of section 311, 312, or 313 shall provide  the specific chemical identi-
ty,  if known,  of a hazardous chemical, extremely hazardous sub-
stance, or a toxic chemical to any health professional who requests
such information in writing  if  the health professional provides a
written statement of need under this subsection and a written con-
fidentiality agreement under  subsection (d). The written statement
of need shall be a statement that the health professional has a rea-
sonable basis to suspect that—
      (1) the  information is  needed for purposes of diagnosis or
    treatment of an individual,
      (2) the individual or individuals being diagnosed or treated
    have been exposed to the  chemical  concerned, and
      (3) knowledge of the specific chemical identity of such chemi-
    cal will assist in diagnosis or treatment.
Following such a written request,  the  owner or operator to  whom
such request is made shall promptly provide the requested informa-
tion to the health professional.  The authority to withhold the spe-
cific chemical identity of a chemical under section 322 when such
information is a trade secret shall  not apply to information  re-
quired to be provided under  this subsection, subject to the provi-
sions of subsection (d).
  (b) MEDICAL EMERGENCY.—An owner  or  operator  of  a  facility
which  is subject to the  requirements  of section 311,  312, or 313
shall provide a copy of a material safety data sheet, an  inventory
form, or a toxic chemical release form,  including the specific chemi-
cal identity, if known, of a hazardous  chemical, extremely hazard-
ous substance, or a toxic chemical, to any treating physician or
nurse who requests such  information if such physician or nurse de-
termines that—
      (Da medical emergency exists,
      (2) the specific chemical identity  of the chemical concerned is
    necessary for or will assist in emergency or first-aid diagnosis
    or treatment, and
      (3) the  individual  or individuals being diagnosed or treated
    have been exposed to the chemical concerned.
Immediately following such  a  request, the owner or operator to
whom such request is made shall provide the requested informa-

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tion to the physician or nurse. The authority to withhold the specif-
ic  chemical  identity of a chemical  from a material safety  data
sheet, an inventory form, or a toxic chemical release form under
section 322 when such information is a trade secret shall not apply
to  information  required to be provided to a treating physician or
nurse under this subsection. No  written confidentiality agreement
or  statement of need  shall be required as a  precondition of such
disclosure, but  the owner or operator  disclosing such information
may require a written confidentiality agreement  in  accordance
with subsection (d) and a statement setting forth the items listed in
paragraphs (1) through (3) as soon as circumstances permit.
  (c) PREVENTIVE MEASURES BY LOCAL HEALTH PROFESSIONALS.—
      (1) PROVISION OF INFORMATION.—An owner or operator of a
    facility subject to the requirements of section 311, 312, or 313
    shall provide the specific chemical  identity, if known, of a haz-
    ardous chemical, an extremely hazardous substance, or a toxic
    chemical to any health professional (such as a physician, toxi-
    cologist, or epidemiologist)—
          (A)  who  is a local government employee  or a person
        under contract with the local government, and
          (B) who requests  such information in  writing and pro-
        vides a written statement of need under paragraph (2) and
        a written confidentiality agreement under subsection (d).
    Following such a  written request, the owner  or  operator to
    whom such request is  made shall promptly provide the request-
    ed information to the local health professional. The authority
    to withhold the specific chemical identity of a chemical under
    section 322 when such information is a trade secret shall not
    apply to information required to be provided under this subsec-
    tion, subject to the provisions of subsection (d).
      (2) WRITTEN STATEMENT OF NEED.—The written  statement of
    need shall be a statement that describes with reasonable detail
    one or more of the following health needs for the information:
          (A) To assess exposure of persons living in a local com-
        munity to the hazards of the chemical concerned.
          (B) To conduct or assess sampling to determine exposure
        levels of various population groups.
          (C) To conduct periodic medical surveillance of exposed
        population groups.
          (D) To provide medical treatment to exposed individuals
        or population groups.
          (E) To conduct studies to determine the health effects of
        exposure.
          (F) To  conduct studies to aid in the  identification of  a
        chemical that may reasonably be anticipated to cause an
        observed health effect.
   (d) CONFIDENTIALITY AGREEMENT.—Any  person obtaining  infor-
mation under subsection  (a) or  (c)  shall, in accordance  with such
subsection (a) or (c), be required to agree in a written confidential-
ity agreement that he will not use the information for any purpose
other  than  the health needs asserted in the  statement of need,
except as may otherwise  be authorized by the terms of the agree-
ment or by  the person providing such  information.  Nothing in this

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subsection shall preclude the parties to a confidentiality agreement
from pursuing any remedies to the extent permitted by law.
  (e) REGULATIONS.—As soon as practicable after the date of the en-
actment of this title, the Administrator shall  promulgate regula-
tions describing criteria and parameters for the statement of need
under  subsection (a) and  (c)  and the confidentiality  agreement
under subsection (d).
SEC. 324. PUBLIC AVAILABILITY OF PLANS, DATA SHEETS, FORMS, AND
           FOLLOWUP NOTICES.
  (a) AVAILABILITY TO PUBLIC.—Each emergency response plan, ma-
terial safety data sheet, list described in section 311(aX2), inventory
form, toxic chemical release form, and followup emergency notice
shall be made available to the  general public, consistent with sec-
tion 322, during normal working hours at the location or  locations
designated by the Administrator, Governor, State emergency re-
sponse commission,  or  local emergency planning committee, as ap-
propriate. Upon request by an owner or operator of a facility sub-
ject to  the requirements of section 312, the State emergency re-
sponse commission and the appropriate local emergency  planning
committee shall withhold from disclosure under this section the lo-
cation  of any specific chemical  required by section  312(dX2) to be
contained in an inventory form as tier II information.
  (b) NOTICE OF PUBLIC AVAILABILITY.—Each local emergency plan-
ning committee shall annually publish a notice in local newspapers
that the emergency response plan, material safety data sheets and
inventory forms have been submitted under this section. The notice
shall state that followup emergency notices may  subsequently be
issued. Such notice shall announce that members of the public who
wish to review any such plan, sheet, form, or followup notice may
do so at the location designated under subsection (a).
SEC. 325. ENFORCEMENT.
  (a) CIVIL PENALTIES  TOR EMERGENCY PLANNING.—The  Adminis-
trator  may order a facility owner or operator (except an owner or
operator of a facility designated under section 302(bX2)) to comply
with section  302(c)  and section 303(d). The United  States district
court for the district in which the facility is located shall have ju-
risdiction to enforce the order, and any person who violates or fails
to obey such an order shall be liable to the United  States for a civil
penalty of not more than $25,000 for each day in which such viola-
tion occurs or such failure to comply continues.
  (b) CIVIL, ADMINISTRATIVE, AND CRIMINAL  PENALTIES FOR EMER-
GENCY NOTIFICATION.—
      (1) CLASS i ADMINISTRATIVE PENALTY.—(A) A civil penalty of
    not more than $25,000 per violation may be assessed  by the
    Administrator in the case of a violation of the requirements of
    section 304.
      (B) No civil penalty may be assessed  under this subsection
    unless the person accused  of the violation is given notice and
    opportunity for a hearing with respect to the violation.
      (C) In determining the amount of any penalty assessed pur-
    suant to this subsection, the Administrator shall take into ac-
    count the nature,  circumstances, extent and gravity of the vio-
    lation  or violations and, with respect to the violator,  ability to

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    pay, any prior history of such violations, the degree of culpabil-
    ity, economic benefit or savings (if any) resulting from the vio-
    lation, and such other matters as justice may require.
      (2) CLASS  n ADMINISTRATIVE PENALTY.—A civil penalty of not
    more than $25,000 per day for each day during which the viola-
    tion continues may be assessed by the Administrator  in the
    case of a violation of the requirements of section 304.  In the
    case of a second or subsequent violation the amount of such
    penalty  may be not more than $75,000 for  each day during
    which the  violation  continues. Any civil penalty under  this
    subsection shall be assessed and collected in the same manner,
    and subject to the same provisions, as in the case of civil penal-
    ties assessed and collected under section 16 of the Toxic Sub-
    stances Control Act. In any proceeding for the assessment of a
    civil  penalty under  this  subsection the  Administrator may
    issue subpoenas for the attendance and testimony of witnesses
    and the production of relevant papers, books, and documents
    and may promulgate rules for discovery procedures.
      (3) JUDICIAL ASSESSMENT.—The Administrator may bring an
    action in the United States  District court for the appropriate
    district to assess and collect a penalty of not more than $25,000
    per day for each day during which the violation continues in
    the case of a violation of the requirements of section 304. In
    the case of a second or  subsequent violation, the amount of
    such penalty may be  not more than $75,000  for  each day
    during which the violation continues.
      (4) CRIMINAL PENALTIES.—Any person who knowingly and
    willfully fails to provide notice in accordance with section 304
    shall, upon conviction, be fined  not more than $25,000 or im-
    prisoned for not more than two years, or both (or in the case of
    a second or  subsequent  conviction, shall be fined  not more
    than $50,000 or imprisoned for not more than  five years, or
    both).
  (c)  CIVIL AND  ADMINISTRATIVE  PENALTIES FOR REPORTING RE-
QUIREMENTS.—(1) Any  person (other than  a governmental  entity)
who violates any requirement of section 312 or 313 shall be liable
to the United States for a civil penalty in an amount not to exceed
$25,000 for each such violation.
  (2) Any person (other than  a governmental entity) who  violates
any requirement of section 311 or 323(b), and any person who fails
to furnish to the Administrator information required under section
322(aX2)  or  requested  by the Administrator under  section 322(d)
shall be liable to the United States for a civil penalty in an amount
not to exceed $10,000 for each such violation.
  (3) Each day  a violation described in  paragraph (1) or (2) contin-
ues shall, for purposes of this subsection, constitute a separate vio-
lation.
  (4) The Administrator may assess any civil penalty for which  a
person is liable under this subsection  by  administrative order or
may bring an action to assess and collect the penalty in the United
States district court for the district in which the person from whom
the penalty is  sought resides or in which such  person's principal
place of business is located.

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  (d) CIVIL,  ADMINISTRATIVE, AND CRIMINAL  PENALTIES WITH RE-
SPECT TO TRADE SECRETS.—
      (1)  ClVIL  AND  ADMINISTRATIVE  PENALTY  FOR  FRIVOLOUS
    CLAIMS.—If the Administrator determines—
          (AXi) under section 322(dX4) that an explanation submit-
        ted  by a trade secret claimant presents insufficient asser-
        tions to support a finding that a specific chemical identity
        is a trade secret,  or (ii) after receiving supplemental sup-
        porting detailed  information  under  section  322(dX3XA),
        that the specific chemical  identity is not a trade secret;
        and
          (B) that the trade secret claim is frivolous,
    the trade secret claimant is liable for a penalty of $25,000 per
    claim. The Administrator  may  assess the penalty  by adminis-
    trative order or may bring an action in the appropriate district
    court of the United States to assess and collect the penalty.
      (2) CRIMINAL PENALTY FOR DISCLOSURE OF TRADE SECRET INFOR-
    MATION.—Any person  who knowingly and willfully divulges or
    discloses any information  entitled  to protection  under section
    322 shall,  upon conviction, be  subject to a fine of not  more
    than $20,000 or to  imprisonment  not  to  exceed one  year, or
    both.
  (e) SPECIAL ENFORCEMENT PROVISIONS FOR  SECTION 323.—When-
ever any facility owner or  operator required to provide  information
under section 323 to a health professional who has requested such
information  fails or refuses to provide  such information in accord-
ance with such section, such  health  professional  may bring an
action  in the  appropriate  United States district court to  require
such facility owner or operator to  provide the  information.  Such
court shall  have jurisdiction to issue  such orders and take such
other action as may be necessary to enforce the requirements of
section 323.
  (f) PROCEDURES FOR ADMINISTRATIVE PENALTIES.—
      (1) Any  person against  whom a  civil penalty is  assessed
    under this section may obtain review thereof in the appropri-
    ate district court of the United States  by filing  a notice of
    appeal in such court  within 30 days  from the date of such
    order and by simultaneously sending a copy of such notice by
    certified mail to  the  Administrator. The Administrator shall
    promptly file in such  court a certified copy of the  record upon
    which such violation  was  found or  such penalty imposed.  If
    any person fails to pay an assessment of a civil penalty after it
    has become a final and unappealable order or after the appro-
    priate court has entered final judgment in favor of the United
    States, the Administrator may request the Attorney General of
    the United States to institute a civil action in an appropriate
    district  court of the United States to collect the penalty, and
    such court shall have jurisdiction to hear and decide any such
    action. In hearing such action, the court shall have authority
    to review  the violation and the assessment of the civil penalty
    on the record.
      (2) The  Administrator may issue subpoenas for the attend-
    ance and testimony of witnesses and the production of relevant
    papers,  books, or documents in  connection with hearings under

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    this section. In case of contumacy or refusal to obey a subpoe-
    na issued pursuant  to  this paragraph and served  upon any
    person, the district court of the United States for any district
    in which such person is found, resides, or transacts business,
    upon application by the United States  and after notice to such
    person, shall have jurisdiction to issue  an order requiring such
    person to appear and give testimony before the administrative
    law judge or to appear  and produce documents  before the ad-
    ministrative law judge,  or  both, and any failure to  obey such
    order of the court may be punished by such court as a con-
    tempt thereof.
SEC. 326. CIVIL ACTIONS.
  (a) AUTHORITY To BRING CIVIL ACTIONS.—
      (1) CITIZEN SUITS.—Except as provided in subsection (e), any
    person may commence a civil action on his own behalf against
    the following:
          (A) An owner  or  operator of a facility for failure to do
        any of the following:
              (i) Submit a  followup emergency notice under  sec-
            tion 304(c).
              (ii) Submit a  material  safety  data sheet or a list
            under section 31 Ha).
              (iii) Complete and submit an inventory form under
            section 312(a) containing  tier I information  as de-'
            scribed in section 312(dXD.
              (iv)  Complete  and submit a toxic chemical  release
            form under section 313(a).
          (B) The Administrator for failure to do any of the follow-
        ing:
              (i) Publish inventory forms under section 312(g).
              (ii) Respond to a petition to add or delete a chemical
            under section 313(eXD within  180 days after receipt of
            the petition.
              (iii) Publish  a toxic chemical release form  under
            313(g).
              (iv) Establish a computer  database  in accordance
            with section 313(j).
              (v) Promulgate trade secret regulations  under sec-
            tion 322(c).
              (vi) Render  a decision  in  response to  a  petition
            under section 322(d) within 9 months after receipt of
            the petition.
          (C)  The  Administrator,  a State Governor, or a State
        emergency response commission,  for failure  to provide  a
        mechanism for public availability of information in accord-
        ance with section 324(a).
          (D) A State Governor  or a State emergency response
        commission for  failure to  respond to a request for tier II
        information under section  312(eX3) within  120 days after
        the date of receipt of the request.
      (2) STATE OR LOCAL SUITS.—

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          (A) Any State or local government may commence a civil
        action against an owner or operator of a facility for failure
        to do any of the following:
              (i)  Provide notification to the  emergency  response
            commission in the State under section 302(c).
              (ii) Submit a material safety data sheet or a  list
            under section 311(a).
              (iii) Make  available  information  requested  under
            section 311(c).
              (iv) Prepare and submit an  inventory  form under
            section 312(a) containing tier I information.
          (B) Any State emergency response  commission or local
        emergency planning  committee  may commence a civil
        action against an owner or operator of a facility for failure
        to provide information under section  303(d) or for failure
        to submit tier II information under section 312(eXD-
          (C) Any State may commence a civil action against  the
        Administrator for failure to provide information  to  the
        State under section 322(g).
  (b) VENUE.—
      (1) Any action under subsection (a) against an owner or oper-
    ator of a facility shall be brought in the district court for  the
    district in which the alleged violation occurred.
      (2) Any action under subsection (a) against the  Administra-
    tor may be brought in the United States District Court for the
    District of Columbia.
  (c) RELIEF.—The district court shall  have jurisdiction in actions
brought under subsection (a) against an owner or operator of a fa-
cility to enforce the requirement concerned and to impose any civil
penalty provided for  violation of that requirement.  The district
court shall have jurisdiction in actions brought under subsection (a)
against the  Administrator to order  the Administrator to perform
the act or duty concerned.
  (d) NOTICE.—
      (1) No action may be commenced under subsection (aXIXA)
    prior to 60 days after the  plaintiff has given notice of the al-
    leged violation to the Administrator, the State in which the al-
    leged violation occurs, and the  alleged violator. Notice under
    this paragraph shall be given in such manner as the  Adminis-
    trator shall prescribe by regulation.
      (2) No action may be commenced under subsection (aXIXB) or
    (aXIXC) prior to 60 days after the date on which  the plaintiff
    gives notice  to the Administrator,  State Governor,  or State
    emergency response commission (as the case may be) that the
    plaintiff will  commence the  action.  Notice  under this para-
    graph shall be given  in  such manner as the  Administrator
    shall prescribe by regulation.
  (e) LIMITATION.—No action may be commenced  under subsection
(a) against an owner  or operator of a facility if the Administrator
has commenced and is diligently pursuing an administrative order
or civil action to  enforce the requirement concerned or to impose a
civil penalty under this Act with respect to the violation  of the re-
quirement.

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  (f) COSTS.—The court, in issuing any final order in any  action
brought pursuant to this section, may award costs of litigation (in-
cluding reasonable attorney and expert witness fees) to the prevail-
ing or the substantially prevailing  party whenever the court deter-
mines such an award is appropriate. The court may, if a temporary
restraining order or preliminary injunction is sought, require the
filing of a bond or equivalent security in accordance with the Fed-
eral Rules of Civil Procedure.
  (g) OTHER  RIGHTS.—Nothing in this  section  shall restrict or
expand any right which any person (or class of persons) may have
under any Federal or State statute or common law to seek enforce-
ment of  any requirement  or  to seek any other relief (including
relief against the Administrator or a State agency).
  (h) INTERVENTION.—
      (1) BY THE UNITED STATES.—In any action under this section
    the United States or the State, or both, if not a party, may in-
    tervene as a matter of right.
      (2) BY PERSONS.—In any action under this section, any person
    may  intervene  as  a matter of right when such person has a
    direct interest  which is or may be adversely affected by the
    action and the disposition of the  action may, as a practical
    matter,  impair or  impede the person's ability to  protect that
    interest unless  the Administrator or the State shows that the
    person's interest is adequately represented by existing parties
    in the action.
SEC. 327. EXEMPTION.
  Except as  provided in section 304, this title does not apply to the
transportation, including the storage incident to such transporta-
tion, of any substance or chemical subject to the requirements of
this title, including the transportation and distribution of natural
gas.
SEC. 328. REGULATIONS.
  The  Administrator may prescribe such regulations as may be
necessary to carry out this title.
SEC. 329. DEFINITIONS.
  For purposes of this title—
      (1) ADMINISTRATOR.—The term "Administrator" means the
    Administrator of the Environmental Protection Agency.
      (2) ENVIRONMENT.—The term "environment" includes water,
    air, and land and the interrelationship which exists among and
    between water, air, and land and all living things.
      (3) EXTREMELY HAZARDOUS SUBSTANCE.—The term "extremely
    hazardous substance" means a substance on the  list described
    in section 302(aX2).
      (4) FACILITY.—The term "facility" means all buildings, equip-
    ment, structures, and other stationary items  which are located
    on a single site or on contiguous or  adjacent sites and which
    are owned or operated by the same person (or by any person
    which controls, is controlled by, or under common control with,
    such person). For purposes of section  304, the term includes
    motor vehicles, rolling stock, and aircraft.

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      (5) HAZARDOUS CHEMICAL.—The  term "hazardous chemical"
    has the meaning given such term by section 311(e).
      (6) MATERIAL SAFETY DATA SHEET.—The term "material safety
    data sheet" means the sheet required to be developed under
    section 1910.1200(g) of title 29 of the Code of Federal Regula-
    tions, as that section may be amended from time to time.
      (7) PERSON.—The term "person"  means any individual, trust,
    firm, joint stock company, corporation (including a government
    corporation), partnership, association, State, municipality, com-
    mission, political subdivision of a State, or interstate body.
      (8) RELEASE.—The term  "release"  means any spilling, leak-
    ing, pumping, pouring, emitting, emptying, discharging, inject-
    ing, escaping, leaching, dumping, or disposing into the environ-
    ment (including the abandonment or discarding of barrels, con-
    tainers, and other closed receptacles) of any hazardous chemi-
    cal, extremely hazardous substance, or toxic chemical.
      (9) STATE.—The term "State" means any State of the United
    States, the District of Columbia, the Commonwealth of Puerto
    Rico, Guam,  American  Samoa,  the United States Virgin  Is-
    lands, the Northern Mariana Islands, and any other territory
    or possession over which the United States has jurisdiction.
      (10) Toxic CHEMICAL.—The term "toxic chemical" means a
    substance on the list described in section 313(c).
SEC. 330. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be  appropriated for fiscal years begin-
ning after September 30, 1986, such sums as  may be necessary to
carry out this title.

     TITLE IV—RADON GAS AND INDOOR AIR QUALITY
                         RESEARCH

SEC. 401. SHORT TITLE.
  This title may be cited as the "Radon Gas and Indoor Air Quality
Research Act of 1986".
SEC. 402. FINDINGS.
  The Congress finds that:
      (1) High levels of radon gas pose a serious health threat in
    structures in certain areas of the country.
      (2) Various  scientific studies have suggested that exposure to
    radon, including exposure to naturally occurring radon and
    indoor air pollutants, poses a public health risk.
      (3) Existing Federal radon and indoor air pollutant research
    programs are fragmented and underfunded.
      (4) An adequate information base concerning  exposure to
    radon and indoor air pollutants  should be developed by the ap-
    propriate Federal agencies.
SEC. 403. RADON GAS AND INDOOR AIR QUALITY RESEARCH PROGRAM.
  (a) DESIGN OF PROGRAM.—The Administrator of the Environmen-
tal Protection Agency shall  establish a research program with re-
spect to  radon gas and indoor air quality. Such program shall be
designed to—
      (1) gather data and information on all aspects of indoor air
    quality in order to contribute to  the understanding of health

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    problems associated with the existence of air pollutants in the
    indoor environment;
      (2) coordinate Federal, State, local, and private research and
    development efforts relating to the improvement of indoor air
    quality; and
      (3) assess appropriate Federal Government  actions to miti-
    gate the environmental and health risks associated with indoor
    air quality problems.
  (b)  PROGRAM REQUIREMENTS.—The research program required
under this section shall include—
      (1) research and development  concerning  the identification,
    characterization, and  monitoring of the sources and levels of
    indoor air pollution, including radon, which includes research
    and development relating to—
          (A) the measurement of various pollutant concentrations
        and their strengths and sources,
          (B) high-risk building types, and
          (C) instruments for indoor  air quality data collection;
      (2) research relating to the effects of indoor air pollution and
    radon on human health;
      (3) research and development relating to control technologies
    or other mitigation measures  to prevent or abate indoor air
    pollution (including the development, evaluation, and testing of
    individual and generic control devices and systems);
      (4) demonstration of  methods for  reducing or  eliminating
    indoor air pollution and radon, including sealing, venting, and
    other methods that the Administrator determines may be ef-
    fective;
      (5) research, to be carried  out  in conjunction with the Secre-
    tary of Housing and Urban Development, for the purpose of de-
    veloping—
          (A) methods for assessing the  potential for radon  con-
        tamination of new construction, including (but not limited
        to) consideration of the moisture content of soil, porosity of
        soil, and radon content of soil; and
          (B) design measures to avoid indoor air pollution; and
      (6)  the dissemination  of  information  to  assure the public
    availability of the findings of the activities under  this section.
  (c) ADVISORY COMMITTEES.—The  Administrator shall establish  a
committee comprised of individuals  representing Federal agencies
concerned with various aspects of indoor air quality and an adviso-
ry group comprised of individuals representing the States, the sci-
entific community, industry, and  public  interest  organizations to
assist him in carrying out the research program for radon gas and
indoor air quality.
  (d) IMPLEMENTATION PLAN.—Not later than 90 days after the en-
actment of this Act, the Administrator shall submit to the  Con-
gress a  plan for implementation of the  research program under
this section. Such plan shall also be submitted to  the EPA  Science
Advisory Board,  which shall, within a reasonable period  of time,
submit its comments on such plan to Congress.
  (e)  REPORT.—Not later  than 2 years after the enactment of this
Act, the Administrator shall submit  to Congress  a  report respecting

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his activities under this section and making such recommendations
as appropriate.
SEC. 404. CONSTRUCTION OF TITLE.
  Nothing in this title shall be construed to authorize the Adminis-
trator to carry  out any  regulatory program or any activity other
than research, development, and related reporting, information dis-
semination, and coordination activities specified in this title. Noth-
ing in this title  shall be construed to limit the authority of the Ad-
ministrator or  of  any  other  agency or instrumentality  of the
United States under any other authority of law.
SEC. 405. AUTHORIZATIONS.
  There are authorized to be appropriated to carry out the activi-
ties under  this title  and  under section 118(k) of the  Superfund
Amendments  and Reauthorization Act of 1986 (relating to  radon
gas  assessment and demonstration program)  not   to  exceed
$5,000,000 for each of the fiscal years  1987, 1988, and 1989. Of such
sums appropriated in fiscal years 1987 and 1988, two-fifths shall be
reserved for the implementation of section 118(kX2).

   TITLE V—AMENDMENTS OF THE INTERNAL REVENUE
                        CODE OF 1986

SEC. 501. SHORT TITLE.
  This title may be cited as the "Superfund Revenue Act of 1986".

     PART I—SUPERFUND AND ITS REVENUE SOURCES

SEC. 511. EXTENSION OF ENVIRONMENTAL TAXES.
  (a) IN GENERAL.—Subsection (d)  of section 4611 of the Internal
Revenue  Code of 1986 (relating to termination) is amended to read
as follows:
  "(d) APPLICATION OF TAXES.—
      "(1) IN  GENERAL.—Except as provided in paragraphs (2) and
    (3), the taxes imposed by this section shall apply after Decem-
    ber 31,1986, and before January 1,1992.
      "(2) NO  TAX IF UNOBLIGATED  BALANCE IN  FUND EXCEEDS
    $3,500,000,000.—If on  December  31, 1989,  or  December  31,
    1990—
          "(A)  the unobligated  balance in the Hazardous Sub-
        stance Superfund exceeds $3,500,000,000, and
          "(B) the Secretary,  after consultation with the Adminis-
        trator  of  the  Environmental Protection Agency,  deter-
        mines that the unobligated balance in the Hazardous Sub-
        stance  Superfund  will exceed  $3,500,000,000 on  Decem-
        ber 31  of 1990 or 1991, respectively,  if no  tax is imposed
        under  section 59A, this  section, and sections 4661 and
        4671,
    then no tax shall be imposed under this section during 1990 or
    1991, as the case may be.
      "(3) NO TAX IF AMOUNTS COLLECTED EXCEED $6,650,000,000.—
          "(A)  ESTIMATES BY  SECRETARY.—The Secretary as of the
        close of each calendar quarter (and at such other times as
        the Secretary determines appropriate) shall make an esti-
        mate of the amount of taxes which will be collected under

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        section 59A, this section, and sections 4661 and 4671 and
        credited to the Hazardous Substance Superfund during the
        period beginning January 1,  1987, and ending December
        31, 1991.
          "(B) TERMINATION IF $6,650,000,000 CREDITED BEFORE JAN-
        UARY i, 1992.—If the Secretary estimates under  subpara-
        graph (A) that more than $6,650,000,000 will be credited to
        the Fund before January 1, 1992, no tax shall be imposed
        under this section after the date on which (as estimated by
        the  Secretary) $6,650,000,000 will  be so credited to the
        Fund.".
  (b) TECHNICAL AMENDMENT.—Section 303 of the Comprehensive
Environmental  Response Compensation, and Liability Act of 1980
is hereby repealed.
  (c) EFFECTIVE DATE.—The amendments made by this section shall
take effect on January 1, 1987.
SEC. 512. INCREASE IN TAX ON PETROLEUM.
  (a) IN GENERAL.—Subsections (a) and (b) of section 4611 of the In-
ternal Revenue Code of 1986 (relating to environmental tax on pe-
troleum) are each amended by striking out "of 0.79 cent a barrel"
and inserting in lieu thereof "at the rate specified  in subsection
(c)".
  (b) INCREASE IN TAX.—Section  4611  of such Code is amended by
redesignating subsections (c) and (d) as subsections (d)  and (e), re-
spectively, and  by inserting after subsection (b) the following new
subsection:
  "(c) RATE OF TAX.—
      "(1) IN GENERAL.—Except  as provided in paragraph (2), the
    rate of the taxes imposed by this section is 8.2 cento a barrel.
      "(2) IMPORTED PETROLEUM PRODUCTS.—The rate of the tax im-
    posed by subsection (aX2) shall be 11.7 cents a barrel."
  (c) ALLOWANCE OF  CREDIT FOR CRUDE OIL RETURNED  TO PIPE-
LINE.—Section 4612 of such Code (relating to definitions and special
rules) is amended by redesignating subsection (c) as  subsection (d)
and by  inserting after subsection (b) the following new subsection:
  "(c) CREDIT  WHERE CRUDE OIL RETURNED TO  PIPELINE.—Under
regulations prescribed by the Secretary, if an operator of a United
States refinery—
      "(1) removes crude oil from a pipeline, and
      "(2) returns a portion of such crude oil into a stream of other
    crude oil in the same pipeline,
there shall be allowed as a credit against the tax imposed by sec-
tion 4611  to such operator an amount equal to the product  of the
rate of  tax imposed by section 4611 on the crude oil so  removed by
such operator and the number of barrels  of crude oil returned by
such operator to such pipeline. Any crude  oil so returned shall be
treated for purposes of this subchapter as crude oil on which  no tax
has been imposed by section 4611.'
  (d) EFFECTIVE DATE.—The amendments made by this section shall
take effect on January 1, 1987.
SEC. 513. CHANGES RELATING TO TAX ON CERTAIN CHEMICALS.
  (a) INCREASE IN RATE OF TAX ON XYLENE.—The table contained in
subsection (b) of section 4661 of  the Internal Revenue Code of 1986

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                             205

(relating to tax on certain chemicals) is amended by adding at the
end thereof the following new sentence:
"For periods before 1992, the item relating to xylene in the preced-
ing table shall be applied by substituting '10.13' for  '4.87'."
  (b) EXEMPTION FOR EXPORTS OF TAXABLE CHEMICALS.—
      (1) Section 4662 of such Code (relating to definitions  and spe-
    cial rules) is amended by redesignating subsection (e) as subsec-
    tion (f) and by inserting after subsection (d)  the following new
    subsection:
  "(e) EXEMPTION FOR EXPORTS OF TAXABLE CHEMICALS.—
      "(1) TAX-FREE SALES.—
          "(A) IN  GENERAL.—No tax shall be imposed under sec-
        tion 4661 on the sale by the manufacturer or producer of
        any taxable chemical  for export, or for  resale by  the pur-
        chaser to a second purchaser for export.
          "(B) PROOF OF EXPORT  REQUIRED.—Rules similar to the
        rules of section  4221(b) shall apply for purposes of  subpara-
        graph (A).
      "(2) CREDIT OR REFUND WHERE TAX PAID.—
          "(A) IN  GENERAL.—Except as provided in subparagraph
        (B), if-
              "(i) tax under section 4661 was paid with respect to
           any taxable chemical, and
               (iiXD such chemical was exported by any person, or
              "(II)  such chemical was used as  a  material in the
           manufacture or production of a substance which was
           exported  by any  person and  which,  at  the  time of
           export, was a taxable substance (as defined in section
           4672(a)),
        credit or refund (without interest)  of such tax shall be al-
        lowed or made to the person who paid such tax.
          "(B) CONDITION  TO ALLOWANCE.—No credit  or refund
        shall  be allowed or made under subparagraph (A) unless
        the person who  paid the tax establishes that he—
              "(i) has repaid or agreed to repay  the amount of the
           tax to the  person who exported the taxable chemical
           or taxable substance (as so defined), or
              "(ii) has obtained the written consent of such export-
           er to the allowance of the credit or  the making of the
           refund.
      "(3) REGULATIONS.—The Secretary shall prescribe such regu-
    lations as may be necessary to carry out the  purposes of this
    subsection. **
      (2) Paragraph (1)  of section 4662(d) of such Code (relating to
    refund or credit for  certain uses) is amended—
          (A) by striking out "the sale of which  by such person
        would be taxable under such section" and  inserting in lieu
        thereof "which  is a taxable chemical", and
          (B) by striking out "imposed by such section on the other
        substance  manufactured or produced" and  inserting in lieu
        thereof "imposed by such section  on the  other substance
        manufactured or produced (or which would have  been im-
        posed by such section on such other substance but for sub-
        section (b) or (e) of this section)".

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                             206

  (c) SPECIAL RULE FOR XYLENE.—Subsection (b) of section 4662 of
such Code (relating to exceptions; other special rules) is amended
by adding after paragraph (6) the following new paragraph:
      "(7) SPECIAL RULE FOR XYLENE.—Except in  the  case of any
    substance imported  into the United States or exported from
    the United States, the term 'xylene'  does not include any sepa-
    rated isomer of xylene."
  (d) EXEMPTION FOR CERTAIN RECYCLED CHEMICALS.—Subsection Ob)
of section 4662 of such Code (relating to exceptions; other special
rules) is amended by adding after paragraph (7) the following new
paragraph:
      "(8) RECYCLED CHROMIUM, COBALT, AND NICKEL.—
          "(A) IN GENERAL.—No tax shall be imposed under sec-
        tion 4661(a) on any chromium, cobalt, or nickel which is di-
        verted or recovered in the United States from any solid
        waste as part of a recycling process (and not as part of the
        original manufacturing or production process).
          "(B) EXEMPTION NOT TO APPLY WHILE CORRECTIVE ACTION
        UNCOMPLETED.—Subparagraph (A) shall not apply during
        any period that  required corrective action by the taxpayer
        at the unit at which the recycling occurs is uncompleted.
          "(C) REQUIRED CORRECTIVE ACTION.—For purposes of sub-
        paragraph (B), required  corrective action shall be treated
        as uncompleted during the period—
              "(i) beginning on the date that the corrective action
            is required by the  Administrator or  an authorized
            State pursuant to—
                  "(I) a final permit  under section  3005 of the
               Solid Waste Disposal Act or a final  order under
               section 3004 or 3008 of such Act, or
                  "(II) a final  order under section  106 of the Com-
               prehensive Environmental  Response, Compensa-
               tion, and Liability Act of 1980, and
              "(ii) ending on the date the Administrator or such
            State  (as the case may be) certifies to the Secretary
            that such corrective action has been completed.
          "(D) SPECIAL  RULE  FOR  GROUNDWATER TREATMENT.—In
        the case of corrective  action requiring ground water treat-
        ment, such action shall  be treated as completed as of the
        close of the  10-year period beginning on  the date  such
        action is  required if  such treatment  complies  with the
        permit  or order  applicable under  subparagraph  (CXi)
        throughout  such period.  The  preceding  sentence  shall
        cease to apply  beginning on  the date such treatment
        ceases to comply with  such permit or order.
          "(E) SOLID WASTE.—For  purposes of this  paragraph, the
        term 'solid waste' has  the meaning given such term by sec-
        tion 1004 of the Solid Waste Disposal Act, except that such
        term shall not include any byproduct, coproduct, or other
        waste from any process of smelting,  refining, or otherwise
        extracting any metal."
   (e) EXEMPTION FOR ANIMAL FEED SUBSTANCES.—

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                             207

     (1) IN GENERAL.—Subsection fb) of section 4662 of such Code
    (relating  to  exceptions;  other special rules)  is amended  by
    adding after paragraph (8) the following new paragraph:
     "(9)  SUBSTANCES USED IN THE PRODUCTION OF ANIMAL FEED.—
          "(A) IN GENERAL.—In the case of—
              "(i) nitric acid,
              "(ii) sulfuric acid,
              "(iii) ammonia, or
              "(iv) methane used to produce ammonia,
       which is a qualified animal feed substance, no tax shall be
       imposed under section 4661(a).
          "(B) QUALIFIED ANIMAL FEED SUBSTANCE.—For purposes
       of this section, the term 'qualified animal feed substance'
       means any substance—
              "(i) used in a qualified animal feed use by the  manu-
           facturer, producer, or importer,
              "(ii) sold for use by any purchaser in  a qualified
           animal feed use, or
              "(iii) sold for  resale by  any purchaser  for use, or
           resale for ultimate use, in a qualified animal feed use.
          "(C) QUALIFIED ANIMAL FEED USE.—The term "qualified
       animal feed  use"  means  any use in the  manufacture or
       production of animal feed or animal feed  supplements, or
       of ingredients used in animal feed or animal feed supple-
       ments.
          "(D) TAXATION OF  NONQUALIFIED SALE OR USE.—For pur-
       poses of section 4661 (a), if no tax was imposed by such sec-
       tion on the sale or use of any  chemical by reason of sub-
       paragraph (A), the 1st person who sells or uses such  chemi-
       cal other than in a sale or use described in subparagraph
       (A) shall  be  treated as the manufacturer of such  chemi-
       cal."
     (2) REFUND OR CREDIT  FOR SUBSTANCES USED IN THE PRODUC-
    TION OF ANIMAL  FEED.—Subsection  (d) of section 4662 of such
    Code (relating to refunds and credits with respect to the  tax on
    certain chemicals) is amended by adding at the end thereof the
    following new paragraph:
     "(4)  USE IN THE PRODUCTION OF ANIMAL FEED.—Under regula-
    tions prescribed by the Secretary, if—
          "(A) a tax under section 4661 was paid with respect to
       nitric acid, sulfuric acid,  ammonia, or methane used to
       produce  ammonia, without regard to subsection CbX9), and
          "(B) any  person  uses  such substance as  a  qualified
       animal feed substance,
    then an amount  equal to the excess of the tax so paid over the
    tax determined with regard to subsection (bX9) shall be allowed
    as  a credit or refund (without interest) to such person in the
    same  manner as if it were an overpayment of tax imposed by
    this section."
  (f) CERTAIN EXCHANGES BY TAXPAYERS NOT TREATED AS SALES.—
Subsection (c) of section 4662 of such Code (relating to use by
manufacturers) is amended to read as follows:
  "(c) USE AND CERTAIN EXCHANGES BY MANUFACTURER, ETC.—

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      "(1) USE TREATED AS SALE.—Except as provided in subsections
    (b) and (e),  if any person manufactures, produces, or imports
    any  taxable chemical  and uses  such chemical, then  such
    person shall be liable for tax  under section 4661 in  the same
    manner as if such chemical were sold by such person.
      "(2) SPECIAL RULES FOR INVENTORY EXCHANGES.—
         "(A) IN GENERAL.—Except as provided in this paragraph,
        in any case in which a manufacturer, producer, or import-
        er of a  taxable chemical exchanges such chemical as part
        of an inventory exchange with another person—
             "(i) such exchange shall not be treated as a sale, and
             "(ii)  such other person shall, for purposes of section
           4661, be treated as the manufacturer, producer, or im-
           porter of such chemical.
         "(B)  REGISTRATION  REQUIREMENT.—Subparagraph  (A)
        shall not apply to any inventory exchange unless—
             "(i) both parties are registered with the Secretary as
           manufacturers,  producers, or  importers of taxable
           chemicals, and
             "(ii)  the  person receiving the taxable chemical  has,
           at such time as the Secretary may prescribes, notified
           the manufacturer, producer, or importer of such per-
           son's registration  number and the internal, revenue
           district in which such person is registered.
         "(C) INVENTORY EXCHANGE.—For purposes  of this  para-
        graph, the term 'inventory exchange'  means any exchange
        in which 2 persons exchange property which is, in the
        hands  of  each  person,  property described in section
        1221(1).".
  (g) SPECIAL RULES RELATING TO HYDROCARBON STREAMS CONTAIN-
ING ORGANIC TAXABLE CHEMICALS.—Subsection  (b)  of section 4662
of such Code (relating to exceptions; other special rules) is amended
by adding after paragraph (9) the following new paragraph:
      "(10) HYDROCARBON STREAMS CONTAINING MIXTURES OF OR-
    GANIC TAXABLE CHEMICALS.—
          "(A)  IN  GENERAL.—No tax shall be imposed under sec-
        tion  4661(a) on any organic taxable  chemical while such
        chemical is part of an intermediate hydrocarbon stream
        containing a mixture of organic taxable chemicals;.
          "(B)  REMOVAL, ETC., TREATED AS USE.—For purposes  of
        this part, if any organic taxable chemical on which no tax
        was imposed by reason of subparagraph (A) is isolated, ex-
        tracted, or otherwise removed from, or ceases to be part of,
        an intermediate hydrocarbon stream—
              "(i) such isolation, extraction, removal, or cessation
            shall be treated as use by the  person  causing  such
            event, and
              "(ii) such person shall be treated as the manufactur-
            er of such chemical.
          "(C)  REGISTRATION   REQUIREMENT.—Subparagraph  (A)
        shall not apply to  any sale of any intermediate  hydrocar-
        bon stream unless  the registration requirements of clauses
        (i) and (ii) of subsection (cX2XB) are satisfied.

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                           209

        "(D) ORGANIC TAXABLE CHEMICAL.—For purposes of this
      paragraph, the term 'organic taxable chemical' means any
      taxable chemical which is an organic substance."
(h) EFFECTIVE DATES.—
    (1) IN GENERAL.—Except as otherwise provided in this subsec-
  tion, the amendments made by this section shall take effect on
  January 1, 1987.
    (2) REPEAL OF TAX ON XYLENE FOR PERIODS BEFORE OCTOBER i,
  1985.—
        (A) REFUND OF TAX PREVIOUSLY IMPOSED.—
           (i) IN GENERAL.—In the case of any tax imposed by
         section 4661 of the Internal Revenue Code of 1954 on
         the sale  or use of xylene before October 1, 1985, such
         tax (including interest, additions to tax, and additional
         amounts) shall not be assessed, and if assessed, the as-
         sessment shall be abated, and if collected shall  be
         credited  or refunded  (with interest)  as  an overpay-
         ment.
           (ii) CONDITION TO ALLOWANCE.—Clause (i)  shall not
         apply to a sale of xylene unless the person who (but
         for clause (i))  would be liable for the tax imposed by
         section 4661 on such sale meets requirements similar
         to the requirements of paragraph (1) of section 6416(a)
         of such Code.  For  purposes of the preceding sentence,
         subparagraph  (A)  of section 6416(aXl) of such  Code
         shall be applied without regard to the material preced-
         ing "has not collected".
        (B) WAIVER OF STATUTE OF LIMITATIONS.—If on the date
      of the enactment of this  Act (or at any time within 1 year
      after such date of enactment) refund or credit of any over-
      payment of tax resulting from the application of subpara-
      graph (A) is  barred by any law or rule of law, refund or
      credit of such overpayment shall, nevertheless, be made or
      allowed  if claim therefor  is filed before the date 1 year
      after the date of the enactment of this Act.
        (O XYLENE TO INCLUDE  ISOMERS.—For purposes of this
      paragraph, the term "xylene" shall include any  isomer of
      xylene whether or not separated.
    (3) INVENTORY EXCHANGES.—
        (A) IN GENERAL.—Except as otherwise provided in this
      paragraph' the amendment made by subsection (f) shall
      apply as if included in the amendments made by section
      211 of the Hazardous  Substance Response Revenue Act of
      1980.
        (B) RECIPIENT MUST AGREE TO TREATMENT AS MANUFAC-
      TURER.—In the case of any inventory exchange before Jan-
      uary 1, 1987, the amendment made by subsection (f) shall
      apply only if the  person receiving the chemical from  the
      manufacturer, producer,  or  importer  in the  exchange
      agrees to be  treated as the manufacturer, producer, or  im-
      porter of such chemical for purposes of subchapter B of
      chapter 38 of the Internal Revenue Code of 1954.
        (C) EXCEPTION WHERE  MANUFACTURER PAID TAX.—In  the
      case of any inventory exchange before January 1, 1987, the

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       amendment made by subsection (f) shall not apply if the
       manufacturer,  producer, or  importer  treated  such ex-
       change as a sale for purposes of section 4661 of such Code
       and paid the tax imposed by such section.
         (D) REGISTRATION REQUIREMENTS.—Section  4662(cX2XB) of
       such Code (as added by subsection (f))  shall apply to ex-
       changes made after December 31, 1986.
     (4) EXPORTS OF TAXABLE SUBSTANCES.—Subclause (II) of sec-
   tion 4662(eX2XAXii) of such Code (as added by this section)
   shall not apply to the export of any taxable substance (as de-
   fined in section 4672(a) of such Code)  before January 1, 1989.
     (5) SALES OF INTERMEDIATE  HYDROCARBON STREAMS.—
         (A) IN GENERAL.—Except as otherwise provided in this
       paragraph, the amendment made by subsection (g) shall
       apply as if included in the amendments made by section
       211 of the Hazardous Substances Response Revenue Act of
       1980.
         (B) PURCHASER MUST AGREE TO TREATMENT AS  MANUFAC-
       TURER.—In the  case of any sale before January  1, 1987, of
       any  intermediate  hydrocarbon stream, the amendment
       made by subsection (g)  shall apply  only if  the  purchaser
       agrees to be treated as the manufacturer, producer, or im-
       porter for purposes of subchapter B of chapter 38 of such
       Code.
         (C) EXCEPTION WHERE  MANUFACTURER PAID TAX:.—In the
       case of any sale before January 1, 1987, of any  intermedi-
       ate hydrocarbon stream, the  amendment made  by subsec-
       tion (g) shall not apply  if the manufacturer, producer, or
       importer of such stream paid the tax imposed  by section
       4661 with respect to  such sale on  all taxable  chemicals
       contained in such stream.
         (D) REGISTRATION REQUIREMENTS.—Section 4662(bX10XC)
       of such Code (as added by subsection (g)) shall apply to ex-
       changes made after December 31, 1986.
SEC. 514. REPEAL OF POST-CLOSURE TAX AND TRUST FUND.
  (a) REPEAL OF TAX.—
     (1) Subchapter C  of chapter 38 of the Internal Revenue Code
    of  1986  (relating to tax on hazardous  wastes) is hereby re-
    pealed.
     (2) The table of subchapters for such chapter  38 is amended
    by striking out the  item relating to subchapter C.
  (b) REPEAL OF TRUST FUND.—Section 232 of the Hazardous Sub-
stance  Response Revenue Act of 1980 is hereby repealed.
  (c) EFFECTIVE DATE.—
      (1) IN GENERAL.—The amendments made by this section shall
    take effect on October 1, 1983.
      (2) WAIVER OF STATUTE OF LIMITATIONS.—If on  the date of the
    enactment of this Act (or at any  time within 1 year after such
    date of enactment) refund or credit of any  overpayment of tax
    resulting from the application of this section is barred by any
    law or rule of law, refund or credit of such overpayment shall,
    nevertheless, be made or  allowed if claim therefor  is filed

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                             211

    before the date 1 year after the date of the enactment of this
    Act.
SEC. 515. TAX ON CERTAIN IMPORTED SUBSTANCES DERIVED FROM TAX-
          ABLE CHEMICALS.
  (a) GENERAL RULE.—Chapter 38 of the Internal Revenue Code of
1986 is amended by adding after subchapter B  the following  new
subchapter:

      "Subchapter C—Tax on Certain Imported Substances

"Sec. 4671. Imposition of tax.
"Sec. 4672. Definitions and special rules.
"SEC. 4671. IMPOSITION OF TAX.
  "(a) GENERAL RULE.—There is hereby imposed a tax on any tax-
able substance sold or used by the importer thereof.
  "(b) AMOUNT OF TAX.—
      "(1) IN GENERAL.—Except as provided  in  paragraph  (2), the
    amount of the tax imposed by subsection (a) with respect to
    any taxable substance shall  be the amount of the tax which
    would  have been  imposed by section  4661  on  the  taxable
    chemicals used as materials in the manufacture or production
    of such substance if such taxable chemicals had been sold in
    the United States for use in the manufacture  or production of
    such taxable substance.
      "(2) RATE WHERE IMPORTER DOES NOT FURNISH  INFORMATION
    TO SECRETARY.—If the importer does not furnish  to the Secre-
    tary (at such time and  in such manner as the Secretary shall
    prescribe) sufficient information to determine under paragraph
    (1) the amount of the tax imposed by subsection (a) on any tax-
    able substance, the amount of the tax imposed on such taxable
    substance shall be 5 percent of the appraised value of such sub-
    stance as of the time  such substance was entered into the
    United States for consumption, use, or warehousing.
      "(3) AUTHORITY TO PRESCRIBE RATE IN LIEU OF PARAGRAPH (2)
    RATE.—The Secretary may prescribe for each taxable substance
    a tax  which, if prescribed, shall apply in lieu  of the tax speci-
    fied in paragraph (2) with respect to such substance. The tax
    prescribed by the Secretary shall be equal to the amount of tax
    which would be imposed by subsection (a) with respect to the
    taxable substance if  such substance were produced using the
    predominant method  of production of such substance.
  "(c) EXEMPTIONS FOR SUBSTANCES TAXED UNDER SECTIONS  4611
AND 4661.—No tax shall be imposed  by this  section on the sale or
use of any substance if tax is imposed on such sale  or  use under
section 4611 or 4661.
  "(d)  TAX-FREE SALES, ETC.  FOR SUBSTANCES USED AS CERTAIN
FUELS OR IN THE  PRODUCTION OF  FERTILIZER OR  ANIMAL  FEED.—
Rules similar to the following rules shall apply for purposes of ap-
plying this section with respect to taxable substances used or sold
for use as described in such rules:
      "(1) Paragraphs (2), (5), and  (9) of section 4662(b) (relating to
    tax-free sales of chemicals used as fuel or in the  production of
    fertilizer or animal feed).

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      "(2) Paragraphs (2), (3), and (4) of section 4662(d) (relating to
    refund or credit of tax on certain chemicals used as fuel or in
    the production of fertilizer or animal feed).
  "(e) TERMINATION.—No tax shall  be imposed  under this section
during any period during which no tax is  imposed  under section
4611(a).
"SEC. 4672. DEFINITIONS AND SPECIAL RULES.
  "(a) TAXABLE SUBSTANCE.—For purposes of this subchapter—
      "(1) IN GENERAL.—The  term  'taxable substance' means any
    substance which, at the time of sale or  use by the importer, is
    listed as a taxable substance by the Secretary for purposes of
    this subchapter.
      "(2)  DETERMINATION OF SUBSTANCES  ON LIST.—A substance
    shall be listed under paragraph  (1) if—
          "(A) the  substance is contained in the list under para-
        graph (3), or
          "(B) the Secretary  determines, in consultation with the
        Administrator of the Environmental Protection  Agency
        and  the Commissioner of Customs,  that taxable chemicals
        constitute more than 50 percent of the weight of the mate-
        rials used to produce such substance (determined  on the
        basis of the predominant method of production).
      "(3) INITIAL LIST OP TAXABLE SUBSTANCES.—
Cumene
Styrene
Ammonium nitrate
Nickel oxide
Isopropyl alcohol
Ethylene glycol
Vinyl chloride
Polyethylene resins, total
Polybutadiene
Styrene-butadiene, latex
Styrene-butadiene, snpf
Synthetic rubber, not containing fillers
Urea
Ferronickel
Ferrochromium nov 3 pet
Ferrochrome pv 3 pet. carbon
Unwrought nickel
Nickel waste and scrap
Wrought nickel rods and wire
Nickel powders
Phenolic resins
Polyvinylchloride resins
Polystyrene resins and copolymers
Ethyl alcohol for nonbeverage use
Ethylbenzene
Methylene chloride
Polypropylene
Propylene glycol
Formaldehyde
Acetone
Acrylonitrile
Methanol
Propylene oxide
Polypropylene resins
Ethylene oxide
Ethylene dichloride
Cyclohexane
laophthalic acid
Maleic anhydride
Phthalic anhydride
Ethyl methyl ketone
Chloroform
Carbon tetrachloride
Chromic acid
Hydrogen peroxide
Polystyrene homopolymer resins
Melamine
Acrylic and methacrylic acid resins
Vinyl resins
Vinyl resins, NSPF.
       "(4) MODIFICATIONS TO LIST.—
           "(A) IN GENERAL.—The Secretary may add substances to
         or remove substances from the list under paragraph (3) (in-
         cluding items listed  by reason of paragraph (2)) as neces-
         sary to carry out the purposes of this subchapter.
           "(B) AUTHORITY  TO  ADD SUBSTANCES  TO utsr BASED ON
         VALUE.—The Secretary may, to the extent necessary to
         carry out the  purposes of this subchapter, add any sub-
         stance to the  list  under  paragraph  (3) if such substance

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        would be described in paragraph (2KB) if 'value' were sub-
        stituted for 'weight' therein.
  "(b) OTHER DEFINITIONS.—For purposes of this subchapter—
      "(1) IMPORTER.—The  term 'importer' means the person enter-
    ing the taxable substance for consumption, use, or warehous-
    ing.
      "(2) TAXABLE CHEMICALS; UNITED STATES.—The terms 'taxable
    chemical'  and 'United States' have the respective meanings
    given such terms by section 4662(a).
  "(c)  DISPOSITION OF  REVENUES  FROM  PUERTO Rico AND  THE
VIRGIN ISLANDS.—The provisions of subsections (aX3) and (bX3) of
section 7652 shall not apply to any tax imposed by section 4671."
  (b) CLERICAL AMENDMENT.—The table of subchapters for chapter
38 of such Code  is amended by adding after the item relating to
subchapter B the following new item:
           "SUBCHAPTER C. Tax on certain imported substances."
  (c) EFFECTIVE DATE.—The amendments made by this section shall
take effect on January 1, 1989.
  (d) STUDY.—
      (1) IN GENERAL.—The Secretary of the Treasury or  his dele-
    gate shall  conduct a study of issues relating to the implementa-
    tion of—
          (A) the tax imposed by the section 4671 of the Internal
        Revenue Code of 1986 (as added by this section), and
          (B)  the credit for exports of taxable  substances under
        section 4661(eX2XAXiiXII) of such Code.
    In conducting such study, the Secretary of the Treasury or his
    delegate  shall  consult  with  the  Environmental  Protection
    Agency and the International Trade Commission.
      (2)  REPORT.—The report of  the study under  paragraph (1)
    shall be submitted  not later than January 1, 1988, to the Com-
    mittee on Ways and Means of the House of Representatives
    and the Committee on Finance of the Senate.
SEC. 516. ENVIRONMENTAL TAX.
  (a) IN GENERAL.—Subchapter A of chapter 1 of the Internal Reve-
nue Code of 1986 (relating to income taxes) is amended by adding
at the end thereof the following new part:

             "PART VII—ENVIRONMENTAL TAX

"Sec. 59A. Environmental tax.
"SEC. 59A. ENVIRONMENTAL TAX.
  "(a) IMPOSITION OF TAX.—In the case of a corporation, there is
hereby imposed (in addition to any other tax imposed by this sub-
title) a tax equal to 0.12 percent of the excess of—
      "(1) the modified alternative  minimum  taxable income  of
    such corporation for the taxable year, over
      "(2) $2,000,000.
  "(b) MODIFIED  ALTERNATIVE  MINIMUM TAXABLE  INCOME.—For
purposes  of this section, the term 'modified alternative minimum
taxable income' means alternative minimum taxable income (as de-
fined in section 55(bX2)) but determined without regard to—

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    "(1) the alternative tax net operating loss deduction (as de-
  fined in section 56(d)), and
    "(2) the deduction allowed under section 164(aX5).
"(c) SPECIAL RULES.—
    "(1) SHORT TAXABLE YEARS.— The application of this section to
  taxable years  of less than 12 months  shall be in accordance
  with regulations prescribed by the Secretary.
    "(2) SECTION is  NOT TO APPLY.— Section 15 shall not apply to
  the tax imposed by this section.
"(d) APPLICATION OF TAX.—
    "(1)  IN GENERAL.— The tax imposed by this section  shall
  apply to  taxable years beginning after December 31, 1986, and
  before January 1,  1992.
    "(2) EARLIER TERMINATION.— The tax  imposed by this section
  shall not apply to  taxable years —
        "(A) beginning during a calendar year during which no
      tax is imposed under  section 461 l(a) by  reason of  para-
      graph (2) of section 461 He), and
        "(B) beginning after the  calendar year which includes
      the  termination date under  paragraph  (3)  of  section
(b) TECHNICAL AMENDMENTS. —
    (1) NO CREDITS ALLOWED AGAINST TAX.—
        (A)  Paragraph (2)  of  section  26(b) of such  Code, as
      amended by the Tax  Reform Act of 1986, is amended by
      redesignating subparagraphs (B)  through (J) as subpara-
      graphs (C) through (K), respectively, and by inserting after
      subparagraph (A) the following new subparagraph:
        "(B) section 59 A (relating to environmental tax),".
        (B) Paragraph (3) of section 936(a) of such Code, as so
      amended, is amended by redesignating subparagraphs (A),
      (B), and (C) as subparagraphs (B), (C), and (D), respectively,
      and by inserting before subparagraph (B) (as so redesignat-
      ed) the following new subparagraph:
        "(A) section 59A (relating to environmental tax),".
    (2) TAX TO BE DEDUCTIBLE FOR INCOME TAX PURPOSES.—
        (A) Subsection (a) of section 164 of such Code (relating to
      deduction for taxes), as so amended, is amended by insert-
      ing after paragraph (4) the following new paragraph:
    "(5) The environmental tax imposed by section 59A."
        (B) Subsection (a) of section 275 of such Code is amended
      by adding at the end thereof the following  new sentence:
      "Paragraph (1) shall not apply to the tax imposed by sec-
      tion 59A.
    (3) LIMITATION IN CASE  OF CONTROLLED CORPORATIONS.— Sub-
  section (a) of section 1561 of such Code (relating to limitations
  on  certain multiple tax benefits in the case of certain con-
  trolled corporations), as amended by the Tax Reform Act of
  1986, is amended —
        (A) by striking out "and" at the end of paragraph (2), by
      striking out the period at the end of paragraph (3) and in-
      serting in lieu thereof ", and", and by inserting after para-
      graph (3) the following new paragraph:

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                            215

     "(4) one $2,000,000 amount for purposes of computing the tax
    imposed by section 59A.", and
         (B) by striking out "(and the amount specified in para-
       graph (3))" and inserting in  lieu thereof ", the amount
       specified in paragraph (3), and  the amount specified in
       paragraph (4)".
     (4) AMENDMENTS TO ESTIMATED TAX PROVISIONS.—
         (A) TAX LIABILITY MUST BE ESTIMATED.—
             (i) Paragraph (1) of section 6154(c) of such Code, as
           so amended, is amended by striking out "and" at the
           end of subparagraph (A), by striking out "over" at the
           end of  subparagraph (B) and inserting in lieu thereof
           "and",  and by adding at the end thereof the following
           new subparagraph:
         "(C)  the  environmental tax imposed by section  59A,
       over".
             (ii)  Subsection (a) of section 6154 of such Code is
           amended by striking out  "section 11" and inserting
           "section 11, 59A,".
         (C)  CONFORMING AMENDMENT TO OVERPAYMENT OP ESTI-
       MATED TAX.—Subparagraph (A) of section 6425(cXD of such
       Code,  as  amended  by the Tax Reform  Act of 1986, is
       amended by striking out "plus" at the end of clause (i), by
       striking out "over"  at the end of clause (ii) and inserting
       in lieu thereof "plus", and by adding at the end thereof
       the following new clause:
             "(iii) the tax imposed by section 59A, over".
         (D) CONFORMING AMENDMENT TO PENALTY FOR FAILURE TO
       PAY  ESTIMATED TAX.—Paragraph (1)  of section  6655Xf) of
       such  Code (defining tax), as so amended,  is amended by
       striking out  "plus   at the end of subparagraph (A), by
       striking out "over"  at the end  of subparagraph (B) and in-
       serting in lieu thereof "plus", and by adding at the end
       thereof the following new subparagraph:
         "(C) the tax imposed by section 59A, over".
      (5) CLERICAL AMENDMENT.—The table of parts for subchapter
    A of chapter  1 of such Code is  amended by adding at the end
    thereof the following new item:
"Part VH. Environmental tax."
  (c) EFFECTIVE DATE.—The amendments made by this section shall
apply to taxable years beginning after December 31, 1986.
SEC. 517. HAZARDOUS SUBSTANCE SUPERFUND.
  (a) IN GENERAL.—Subchapter A of chapter 98 of the Internal Rev-
enue  Code  of 1986 (relating to  establishment of trust  funds) is
amended by adding after section 9506 the following new section:
"SEC. 9507. HAZARDOUS SUBSTANCE SUPERFUND.
  "(a)  CREATION  OP  TRUST  FUND.—There is established in  the
Treasury of the  United States a trust fund to be known as the
'Hazardous Substance Superfund' (hereinafter in  this section re-
ferred to as the  'Superfund'), consisting of such amounts as ma>
be—

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                             216

      "(1) appropriated to the Super-fund as provided in this sec-
    tion,
      "(2) appropriated to the Superfund pursuant to section 517(b)
    of the Superfund Revenue Act of 1986, or
      "(3) credited to the Superfund as provided in section 9602(b).
  "(b) TRANSFERS TO SUPERFUND.—There are hereby  appropriated
to the Superfund amounts equivalent to—
      "(1) the taxes received in  the Treasury  under section 59A,
    4611, 4661, or 4671 (relating to environmental taxes),
      "(2) amounts recovered on behalf of the Superfund  under the
    Comprehensive  Environmental  Response,  Compensation,  and
    Liability Act of 1980 (hereinafter in this section referred to as
    'CERCLA'),
      "(3)  all  moneys  recovered  or  collected  under  section
    311(bX6XB) of the Clean Water Act,
      "(4) penalties assessed under title I of CERCLA, and
      "(5) punitive damages under section 107(cX3) of CERCLA.
  "(c) EXPENDITURES FROM SUPERFUND.—
      "(1) IN  GENERAL.—Amounts in the Superfund shall be avail-
    able, as provided in appropriation Acts, only  for purposes  of
    making expenditures—
           (A) to carry out the purposes of—
             "(i) paragraphs (1), (2), (5), and (6) of section lll(a) of
           CERCLA as in effect on the date of the  enactment of
           the Superfund  Amendments and  Reauthorization Act
           of 1986,
             "(ii) section lll(c) of CERCLA (as so in effect), other
           than paragraphs (1) and (2) thereof, and
             "(iii) section  11 Km) of CERCLA (as  so in  effect),  or
          "(B) hereafter authorized by  a law  which does not au-
        thorize the expenditure out of the Superfund for a general
        purpose not covered by subparagraph  (A) (as so in effect).
      "(2) EXCEPTION FOR CERTAIN TRANSFERS,  ETC., OF HAZARDOUS
    SUBSTANCES.—No amount in the Superfund or derived from the
    Superfund shall be available or  used for the transfer or dispos-
    al of  hazardous waste  carried out pursuant to a cooperative
    agreement  between the Administrator of the Environmental
    Protection  Agency and a  State  if the  following  conditions
    apply—
          "(A) the transfer or disposal, if made on December 13,
        1985, would not comply with a State or local requirement,
          "(B) the transfer is to  a facility for which a final permit
        under section 3005(a) of the Solid Waste Disposal Act was
        issued after January 1, 1983, and before November 1, 1984,
        and
          "(C)  the transfer is from  a facility identified as  the
        McColl Site in Fullerton, California.
  "(d) AUTHORITY To BORROW.—
      "(1) IN GENERAL.—There are authorized to be appropriated to
    the Superfund, as repayable advances, such sums as may  be
    necessary to carry out the purposes of the Superfund.
      "(2)  LIMITATION  ON  AGGREGATE ADVANCES.—The  maximum
    aggregate amount of  repayable  advances to the  Superfund
    which is outstanding  at any one  time shall not  exceed  an

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                             217

    amount  equal to the amount which the Secretary estimates
    will be equal to the sum  of the amounts appropriated to the
    Superfund under  subsection (bXD during  the  following 24
    months.
      "(3) REPAYMENT OF ADVANCES.—
         "(A) IN  GENERAL.—Advances  made  to  the Superfund
        shall be repaid, and  interest  on such  advances shall be
        paid, to the general fund of the Treasury when the Secre-
        tary determines that  moneys  are available for such pur-
        poses in the Superfund.
         "(B) FINAL REPAYMENT.—No advance  shall be made  to
        the Superfund after December 31, 1991, and all advances
        to such Fund shall be  repaid on or before such date.
         "(C) RATE OF INTEREST.—Interest on  advances made  to
        the Superfund shall be at a rate determined by the Secre-
        tary of the Treasury (as of the close of the calendar month
        preceding the month  in which the advance is made) to be
        equal to the current average  market yield on outstanding
        marketable obligations of the  United States with  remain-
        ing  periods to maturity comparable to the  anticipated
        period during which the advance will be outstanding and
        shall be compounded annually.
  "(e) LIABILITY OF UNITED STATES  LIMITED TO  AMOUNT IN TRUST
FUND.—
      "(1) GENERAL RULE.—Any claim filed against the Superfund
    may be paid only out of the Superfund.
      "(2) COORDINATION  WITH  OTHER  PROVISIONS.—Nothing  in
    CERCLA or the Superfund Amendments and Reauthorization
    Act of 1986 (or in any amendment made by either of such Acts)
    shall authorize the payment by the United States Government
    of any amount with respect to  any such  claim  out of any
    source other than the Superfund.
      "(3) ORDER IN WHICH UNPAID CLAIMS  ARE  TO  BE  PAID.—If at
    any time the Superfund has insufficient funds to pay all of the
    claims payable out of the Superfund at such time,  such claims
    shall, to the extent permitted under paragraph (1), be paid in
    full in the order in which  they were finally determined.'
  (b)  AUTHORIZATION OF APPROPRIATIONS.—There is authorized to
be appropriated, out of any money in the Treasury not otherwise
appropriated,  to  the Hazardous Substance Superfund for fiscal
year—
      (1) 1987, $250,000,000,
      (2) 1988, $250,000,000,
      (3) 1989, $250,000,000,
      (4) 1990, $250,000,000, and
      (5) 1991, $250,000,000,
plus for each fiscal year an amount equal to so much of the aggre-
gate amount authorized to be appropriated under  this subsection
(and paragraph (2) of section 221(b)  of the Hazardous Substance Re-
sponse Act of 1980, as in effect before its repeal) as has not been
appropriated before the beginning of the  fiscal year involved.
  (c) CONFORMING AMENDMENTS.—
      (1) Subtitle B of the Hazardous Substance Response Revenue
    Act of 1980 (relating to establishment of Hazardous Substance

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                            218

    Response Trust Fund), as amended by section 204 of this Act, is
    hereby repealed.
      (2) Paragraph (11) of section 101 of the Comprehensive Envi-
    ronmental Response, Compensation, and Liability Act of 1980
    is amended to read as follows:
      "(11) The term 'Fund' or Trust Fund' means the Hazardous
    Substance  Superfund established by section 9507 of the  Inter-
    nal Revenue Code of 1986."
  (d) CLERICAL AMENDMENT.—The table of sections for subchapter
A of chapter 98 of such Code is amended by adding after the item
relating to section 9506 the following new item:
"Sec. 9507. Hazardous Substance Superfund."
  (e) EFFECTIVE DATE.—
      (1) IN GENERAL.—The amendments made by this section shall
    take effect on January 1, 1987.
      (2) SUPERFUND TREATED  AS CONTINUATION OF  OLD  TRUST
    FUND.—The Hazardous Substance Superfund established by the
    amendments  made by this section shall be treated for all pur-
    poses of law as a continuation of the Hazardous Substance Re-
    sponse Trust  Fund established by section 221 of the Hazardous
    Substance Response Revenue Act of 1980. Any reference in any
    law to the Hazardous Substance Response Trust Fund  estab-
    lished by such section 221 shall be deemed to include (wherev-
    er appropriate) a reference to the Hazardous Substance Super-
    fund established by the amendments made by this section.

PART II-LEAKING UNDERGROUND STORAGE TANK TRUST
            FUND AND ITS REVENUE SOURCES

SEC.  521. ADDITIONAL  TAXES ON  GASOLINE, DIESEL FUEL,  SPECIAL
          MOTOR FUELS, FUELS USED IN AVIATION, AND FUELS USED
          IN  COMMERCIAL  TRANSPORTATION ON  INLAND WATER-
          WAYS.
  (a) GENERAL RULE.—
      (1) GASOLINE.—
          (A) GASOLINE TAX BEFORE AMENDMENT  BY TAX REFORM
        ACT OF 1988.—
             (i)  IN GENERAL.—Section 4081 of the Internal Reve-
           nue Code of 1986 (relating to imposition of tax on gaso-
           line), as in effect on the day before the date of the en-
           actment of the Tax Reform Act of 1986, is amended by
           striking out subsections (a) and (b)  and inserting in
           lieu thereof the following:
  "(a) IN GENERAL.—There  is hereby imposed  on  gasoline sold by
the producer or importer thereof, or by any producer of gasoline, a
tax at the rate specified in subsection (b).
  "(b) RATE OF TAX.—
      "(1) IN GENERAL.—The rate of the tax imposed by this section
    is the sum of—
          "(A) the Highway Trust Fund financing rate, and
          "(B) the Leaking Underground Storage Tank Trust Fund
        financing rate.
      "(2) RATES.—For purposes of paragraph (1)—

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                          219

       "(A) the Highway Trust Fund financing rate is 9 cents a
     gallon, and
       "(B) the Leaking Underground Storage Tank Trust Fund
     financing rate is 0.1 cents a gallon."
           (ii) TERMINATION.—Section 4081 of such Code, as so
         in effect, is amended by adding at the end thereof the
         following new subsection:
'(d) TERMINATION.—
   "(1) HIGHWAY TRUST FUND FINANCING  RATE.—On  and after
 October 1, 1988, the Highway Trust Fund financing rate under
 subsection (bX2XA) shall not apply.
   "(2) LEAKING  UNDERGROUND STORAGE  TANK TRUST FUND  FI-
 NANCING RATE.—
       "(A) IN GENERAL.—The Leaking  Underground  Storage
     Tank Trust Fund financing  rate under subsection (bX2XB)
     shall not apply after the earlier of—
           "(i) December 31, 1991, or
           "(ii) the last day of the termination month.
       "(B) TERMINATION MONTH.—For  purposes  of subpara-
     graph (A),  the termination month is the 1st month as of
     the close of which the  Secretary estimates that the net
     revenues from the  taxes imposed by this section (to the
     extent attributable to the  Leaking Underground Storage
     Tank Trust Fund financing rate under subsection (bX2XB)),
     section 404 l(d), and section 4042 (to the extent attributable
     to the Leaking Underground Storage Tank Trust Fund fi-
     nancing   rate   under   section  4042(b))   are  at   least
     $500,000,000.
       "(C) NET REVENUES.—For  purposes of subparagraph (B),
     the term 'net revenues' means the excess of gross revenues
     over amounts payable by reason of section 9508(cX2) (relat-
     ing to transfer from Leaking Underground Storage Tank
     Trust Fund for certain repayments and credits)."
       (iii) TECHNICAL AMENDMENTS.—Subsection (c) of section
     4081 of such Code, as so in effect, is amended—
               (I) by striking out "subsection (a)" in  paragraph
             (1)  and inserting in lieu thereof "subsection (b)",
             and
               (II) by striking out "a rate" in paragraph (2) and
             inserting in lieu thereof "a Highway Trust Fund
             financing rate".
       (B) GASOLINE TAX AS  AMENDED BY TAX REFORM  ACT OF
     1986.—
           (i) IN GENERAL.—Subsections (a)  and (b) of section
         4081 of the Internal  Revenue Code of 1986 (relating to
         imposition of tax on gasoline), as amended by the Tax
         Reform Act of 1986, are each amended by striking out
         "of 9 cents a gallon" and inserting in lieu thereof "at
         the rate specified in subsection (d)
           (ii) INCREASE IN TAX.—Section 4081 of such Code, as
         amended by the Tax Reform Act of 1986, is amended
         by  striking out subsection (d) and inserting in lieu
         thereof the following new subsections:
"(d) RATE OF TAX.—

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                            220

     "(1) IN GENERAL.—The rate of the tax imposed by this section
   is the sum of—
         "(A) the Highway Trust Fund financing rate, and
         "(B) the Leaking Underground Storage Tank Trust Fund
       financing rate.
     "(2) RATES.—For purposes of paragraph (D—
         "(A) the Highway Trust Fund financing rate is 9 cents a
       gallon, and
         "(B) the Leaking Underground Storage Tank Trust Fund
       financing rate is 0.1 cents a gallon.
 "(e) TERMINATION.—
     "(1) HIGHWAY TRUST FUND  FINANCING RATE.—On and  after
   October 1, 1988, the Highway  Trust Fund financing rate under
   subsection (dX2XA) shall not apply.
     "(2) LEAKING UNDERGROUND STORAGE  TANK TRUST FUND FI-
   NANCING RATE.—
         "(A)  IN GENERAL.—The Leaking Underground  Storage
       Tank Trust Fund financing rate under subsection  (dX2XB)
       shall not apply after the earlier of—
             "(i) December 31, 1991, or
             "(ii) the last day of the termination month.
         "(B)  TERMINATION MONTH.—For purposes  of subpara-
       graph (A),  the termination month is the 1st month as of
       the close  of which the Secretary estimates that  the  net
       revenues from  the taxes imposed by  this  section (to  the
       extent  attributable to the Leaking  Underground  Storage
       Tank Trust Fund  financing rate under subsection (dX2XB)),
       section 404l(d),  and section 4042 (to the extent attributable
       to the Leaking  Underground Storage Tank Trust Fund fi-
       nancing   rate  under  section  4042(b))  are  at  least
       $500,000,000.
         "(C) NET REVENUES.—For purposes of subparagraph  (B),
       the term  "net revenues" means  the excess of gross reve-
       nues over amounts payable by reason of section 9508(c)(2)
       (relating to transfer from Leaking  Underground  Storage
       Tank Trust Fund for certain repayments and credits)."
             (iii) TECHNICAL AMENDMENTS.—Subsection (c) of  sec-
           tion 4081 of such Code, as amended by the Tax Reform
           Act of 1986, is amended—
                 (I) by striking out "subsection (a)" in paragraph
               (1) and inserting in lieu thereof "subsection (d)",
               and
                 (II) by striking out "a rate" in paragraph (2)  and
               inserting in lieu thereof "a Highway Trust Fund
               financing rate".
     (2)  DIESEL AND SPECIAL MOTOR FUELS; FUELS  USED IN AVIA-
   TION.—Section 4041 of such  Code (relating to  tax on special
   fuels) is amended by redesignating subsection (d) as subsection
   (e)  and by inserting after subsection (c) the following new  sub-
   section:
  "(d) ADDITIONAL TAXES To FUND LEAKING UNDERGROUND STOR-
AGE TANK TRUST FUND.—
     "(1) LIQUIDS OTHER THAN GASOLINE, ETC., USED IN MOTOR VEHI-
    CLES, MOTORBOATS,  OR TRAINS.—In addition to the taxes im-

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                           221

  posed  by subsection (a),  there is hereby imposed a tax of 0.1
  cents  a gallon on benzol, benzene, naphtha, casing head and
  natural gasoline, or any  other liquid (other than kerosene, gas
  oil, liquefied petroleum gas, or fuel oil, or any product taxable
  under section 4081)—
        "(A) sold by any person to an owner, lessee, or other op-
     erator of a motor vehicle, motorboat, or train for  use as a
     fuel in such motor vehicle, motorboat, or train, or
        "(B) used by any person as a fuel in a motor vehicle, mo-
     torboat,  or train unless there was a taxable sale of such
     liquid under subparagraph (A).
    "(2)  LIQUIDS USED IN AVIATION.—In addition to the taxes im-
  posed  by subsection (c) and section 4081, there is hereby im-
  posed  a tax of 0.1 cents a gallon on any liquid—
        "(A) sold by any person to an owner, lessee, or other op-
     erator of an  aircraft for use as a fuel  in such aircraft, or
        "(B) used by any person as a fuel in an aircraft  unless
     there was a taxable sale of such  liquid under  subpara-
     graph (A).
  The tax imposed by this paragraph shall not apply to any prod-
  uct taxable under section 4081 which  is used as a fuel in an
  aircraft other than in noncommercial aviation.
    "(3)  TERMINATION.—The taxes imposed  by this subsection
  shall not apply during any period during which the Leaking
  Underground Storage Tank Trust Fund financing rate under
  section 4081 does not apply."
    (3) FUEL USED IN COMMERCIAL TRANSPORTATION ON INLAND
  WATERWAYS.—Subsection (b) of section 4042 of such Code (relat-
  ing to amount of tax on fuel used in commercial transportation
  on inland waterways) is amended to read as follows:
"(b) AMOUNT OF TAX.—
    "(1) IN GENERAL.—The rate of the tax imposed by subsection
  (a) is the sum of—
        "(A) the Inland Waterways Trust Fund financing rate,
      and
        "(B) the Leaking Underground Storage Tank Trust Fund
      financing rate.
    "(2) RATES.—For purposes of paragraph (1)—
        "(A) the Inland Waterways Trust Fund financing rate is
      10 cents a gallon, and
        "(B) the Leaking Underground Storage Tank Trust Fund
      financing rate is 0.1  cents a gallon.
    "(3) EXCEPTION FOR FUEL TAXED UNDER SECTION 404 i(d).—The
  Leaking Underground Storage Tank Trust Fund financing rate
  under paragraph (2XB) shall not apply to the use of any fuel if
  tax  under section 404 l(d) was imposed on the sale of such fuel
  or is imposed on such use.
    "(4) TERMINATION OF LEAKING UNDERGROUND STORAGE TANK
  TRUST FUND FINANCING RATE.—The Leaking Underground Stor-
  age Tank Trust Fund financing rate under paragraph (2XB)
  shall  not apply during any period during which the Leaking
  Underground Storage Tank Trust  Fund financing rate  under
  section 4081 does not apply."

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                             222

  (b) ADDITIONAL TAXES  Nor  TRANSFERRED  TO HIGHWAY TRUST
FUND, AIRPORT AND AIRWAY TRUST FUND, AND INLAND WATERWAYS
TRUST FUND.—
      (1) HIGHWAY TRUST FUND.—
          (A) IN GENERAL.—Subsection (b) of section 9503 of such
        Code (relating to transfer  to  Highway Trust  Fund  of
        amounts equivalent to certain taxes) is amended by adding
        at the end thereof the following new paragraph:
      "(4) CERTAIN ADDITIONAL TAXES NOT TRANSFERRED  TO  HIGH-
    WAY TRUST FUND.—For  purposes of paragraphs (1) and  (2),
    there  shall not be taken into account the taxes imposed by sec-
    tion 4041(d) and so much of the taxes imposed by section 4081
    as is attributable to the Leaking Underground Storage  Tank
    Trust  Fund financing rate."
          (B) CONFORMING AMENDMENT.—Subparagraph (D) of sec-
        tion 9503(cX4) of such Code (defining motorboat fuel  taxes)
        is amended by striking out "section 4081" and inserting in
        lieu thereof "section 4061 (to the extent attributable  to the
        Highway Trust Fund financing rate)".
      (2) AIRPORT AND AIRWAY TRUST FUND.—Subsection (b) of sec-
    tion 9502 of such Code (relating to transfer to Airport and
    Airway Trust Fund of amounts equivalent  to certain taxes) is
    amended—
          (A) by  striking out  "subsections  (c)  and  (d) of section
        4041" in paragraph (1) and inserting in lieu thereof "sub-
        sections (c) and (e) of section 4041", and
          (B) by striking out "section 4081"  in paragraph (2) and
        inserting in lieu thereof "section 4081 (to the extent attrib-
        utable to the Highway Trust Fund financing  rate)".
      (3) INLAND  WATERWAYS TRUST FUND.—Paragraph (1) of sec-
    tion 9506(b) of such  Code is  amended by  adding at the end
    thereof the following new sentence: "The  preceding sentence
    shall apply only to so much of such taxes as are attributable to
    the Inland Waterways Trust Fund financing rate under section
    4042(b)."
  (c) REPAYMENTS FOR GASOLINE USED ON FARMS, ETC.—
      (1) GASOLINE USED ON FARMS.—Subsection (h) of section 6420
    of such Code (relating to termination) is amended by striking
    out "This section" and inserting in lieu  thereof "Except with
    respect to taxes imposed by section 4081 at the Leaking Under-
    ground Storage Tank Trust Fund financing rate, this section".
      (2) GASOLINE USED FOR CERTAIN NONHIGHWAY PURPOSES OR BY
    LOCAL TRANSIT SYSTEMS.—
          (A) TERMINATION NOT TO APPLY TO ADDITIONAL o.i CENT
        TAX.—Subsection (h) of section 6421 of  such  Code (relating
        to effective date), as in effect on the day before the date of
        the enactment of the Tax Reform Act of 1986, is amended
        by striking out "This section" and inserting  in lieu thereof
        "Except with respect to  taxes imposed by section 4081 at
        the Leaking  Underground  Storage  Tank Trust  Fund fi-
        nancing rate, this section".
          (B)  REPAYMENT  OF ADDITIONAL TAX FOR  OFF-HIGHWAY
        BUSINESS USE TO  APPLY ONLY TO CERTAIN VESSELS.—SubseC-
        tion (e) of section 6421  of  such Code, as so  in  effect, is

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                             223

        amended by adding at the end thereof the following new
        paragraph:
      "(4) SECTION NOT TO APPLY TO CERTAIN OFF-HIGHWAY BUSINESS
    USES WITH RESPECT TO THE TAX IMPOSED BY SECTION 4081 AT THE
    LEAKING UNDERGROUND STORAGE TANK TRUST FUND FINANCING
    RATE.—This section shall not apply with respect to the tax im-
    posed by section 4081  at the Leaking  Underground Storage
    Tank Trust Fund financing rate on gasoline  used  in any off-
    highway business use other than use in a vessel employed in
    the fisheries or in the whaling business."
      (3) FUELS USED FOR  NONTAXABLE PURPOSES.—
          (A) Subsection  (m) of section  6427  of such Code (relating
        to termination), as in effect on the day before the date of
        the enactment of the Tax Reform Act of 1986, is amended
        by striking out "Subsections" and inserting in lieu thereof
        "Except with respect to taxes  imposed by section 404 l(d)
        and section  4081 at the Leaking  Underground Storage
        Tank Trust Fund financing rate, subsections".
          (BXi) Section 6427 of such Code, as so in effect, is amend-
        ed by redesignating subsection  (n) as subsection (o) and by
        inserting after subsection (m) the following new subsection:
  "(n) PAYMENTS FOR TAXES IMPOSED BY SECTION 4041(d).—For pur-
poses of subsections  (a), (b), and (c), the taxes imposed by section
404l(d) shall be treated as imposed by section 4041(a)."
          (ii) Subparagraph  (A)  of section  1703(eXD of the Tax
        Reform Act of 1986 is amended—
             (I)  by striking out "and (o)" and inserting in lieu
            thereof "(o), and (p)", and
             (II) by striking out "and (n)" and  inserting in lieu
            thereof "(n),  and (o)".
          (C) Paragraph  (1) of section 6427(f) of such Code (relating
        to gasoline used to  produce certain alcohol fuels) is amend-
        ed by striking out  at the rate" and  inserting in lieu  there-
        of "at the Highway Trust Fund financing rate".
  (d)  CONTINUATION OP  CERTAIN  EXEMPTIONS  FROM ADDITIONAL
TAXES, ETC.—
      (1) Subsection  (b) of section 4041 of such Code (relating to ex-
    emption for  off-highway business use; reduction  in tax  for
     qualified methanol and ethanol fuel) is  amended by  adding at
        end thereof the following new paragraph:
       '(3) COORDINATION  WITH TAXES IMPOSED BY SUBSECTION  (d).—
          "(A) OFF-HIGHWAY BUSINESS USE.—
              "(i) IN GENERAL.—Except as provided in clause (ii),
            rules similar to the rules of paragraph (1) shall apply
            with respect to the taxes imposed by subsection (d).
              "(ii)  LIMITATION ON EXEMPTION FOR OFF-HIGHWAY
            BUSINESS  USE.—For  purposes  of  subparagraph (A),
            paragraph (1) shall apply only with respect to off-high-
            way business use in a vessel employed in the fisheries
            or in the whaling business.
          "(B) QUALIFIED METHANOL AND ETHANOL FUEL.—In  the
        case of qualified methanol or  ethanol  fuel, subsection (d)
        shall be  applied by substituting '0.05 cents' for '0.1 cents'
        in paragraph (1)  thereof."

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                             224

      (2) Paragraph (3) of section 404 l(f) of such Code (relating to
    exemption for farm use) is amended by striking out "On and
    after' and inserting in lieu thereof "Except with respect to the
    taxes imposed by subsection (d), on and after".
      (3) The last sentence of section 404 l(g) of such Code (relating
    to other exemptions) is amended by striking out "Paragraphs"
    and inserting in lieu thereof "Except with respect to the taxes
    imposed by subsection (d), paragraphs".
      (4XA) The last sentence of section 4221(a) of such Code (relat-
    ing to certain tax-free sales) is amended by striking out "4081"
    and  inserting in  lieu thereof "4081 (at the Highway  Trust
    Fund financing rate)".
      (B) Subparagraph (C) of  section 1703(cX2) of the Tax Reform
    Act of 1986 is amended to read as follows:
          "(C) Subsection (a)  of section  4221  (relating  to certain
        tax-free sales) is amended—
              "(i) by  inserting 'or  section  4081 (at  the Highway
            Trust Fund financing rate)' before 'section 4121' in the
            1st sentence, and
              "(ii) by striking out '4071, or 4081 (at the Highway
            Trust Fund  financing rate)' in  the last sentence  and
            inserting in lieu thereof 'or 4071'."
      (5) Paragraph (2) of section 6416(b) of such Code is amended
    by inserting  "or  under paragraph (1XA) or  (2XA)  of section
    4041(d)" after "section 4041(aT.
  (e) EFFECTIVE DATE.—The amendments made by this section shall
take effect on January 1, 1987.
SEC. 522. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.
  (a) IN GENERAL.—Subchapter A of chapter 98 of the Internal Rev-
enue  Code of 1986 (relating  to establishment of trust funds)  is
amended by adding after section 9507 the following new section:
"SEC. 9508. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.
  "(a) CREATION  OF TRUST FUND.—There  is established  in  the
Treasury of the United  States a trust fund to be known as the
'Leaking Underground  Storage Tank Trust Fund', consisting  of
such amounts as may be appropriated or  credited to such Trust
Fund as provided in this section or section 9602(b).
  "(b) TRANSFERS TO TRUST FUND.—There are hereby appropriated
to the Leaking Underground  Storage Tank  Trust  Fund amounts
equivalent to—
      "(1) taxes received in the Treasury under section  4041(d) (re-
    lating to additional taxes on motor fuels),
      "(2) taxes received in the Treasury under section 4081 (relat-
    ing to tax on gasoline) to the extent attributable to the Leak-
    ing  Underground Storage Tank  Trust  Fund  financing  rate
    under such section,
      "(3) taxes received in the Treasury under section 4042 (relat-
    ing to tax on fuel used in  commercial transportation on  inland
    waterways) to the extent attributable to the Leaking Under-
    ground  Storage Tank Trust Fund financing rate under  such
    section, and
      "(4) amounts received in "the Treasury and collected under
    section 9003(hX6)  of the Solid Waste Disposal Act.

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                             225

  "(c) EXPENDITURES.—
      "(1) IN  GENERAL.—Except  as  provided  in paragraph  (2),
    amounts  in  the Leaking  Underground  Storage  Tank  Trust
    Fund shall be available, as provided in appropriation Acts,
    only for purposes of making expenditures to carry out section
    9003(h) of the Solid Waste Disposal Act as in effect on the date
    of the enactment of the Superfund Amendments and Reauthor-
    ization Act of 1986.
      "(2) TRANSFERS FROM TRUST FUND  FOR  CERTAIN  REPAYMENTS
    AND CREDITS.—
          "(A) IN GENERAL.—The Secretary shall pay from time to
        time from the Leaking Underground Storage Tank Trust
        Fund into the general fund of the Treasury amounts equiv-
        alent to—
             "(i) amounts paid under—
                 "(I) section 6420 (relating to amounts paid in re-
               spect of gasoline used on farms),
                 "(II) section 6421 (relating to amounts paid in
               respect  of gasoline used for certain  npnhighway
               purposes or by local transit systems), and
                 "(HI) section  6427 (relating to fuels not used for
               taxable purposes), and
             "(ii) credits allowed  under section 34, with respect to
           the taxes imposed by  sections 4041(d) and 4081 (to the
           extent attributable to the Leaking Underground Stor-
           age  Tank Trust Fund  financing rate under  section
           4081).
          "(B) TRANSFERS BASED ON  ESTIMATES.—Transfers  under
        subparagraph (A) shall be made on the basis of estimates
        by the Secretary, and proper adjustments shall be made in
        amounts subsequently transferred to the extent prior esti-
        mates were in excess of or less than  the amounts required
        to be transferred.
  "(d) LIABILITY  OF THE  UNITED  STATES  LIMITED  TO AMOUNT  IN
TRUST FUND.—
      "(1) GENERAL RULE.—Any claim  filed  against  the Leaking
    Underground Storage Tank Trust Fund  may be paid only out
    of such Trust Fund.
      "(2) COORDINATION WITH OTHER PROVISIONS.—Nothing in the
    Comprehensive Environmental Response, Compensation, and
    Liability Act of 1980 or the Superfund Amendments and Reau-
    thorization Act of 1986 (or in  any amendment made by either
    of such Acts) shall authorize the payment by the United States
    Government of any amount with respect  to any such claim out
    of any source other than the Leaking  Underground Storage
    Tank Trust Fund.
      "(3) ORDER IN WHICH UNPAID CLAIMS ARE TO  BE PAID.—If at
    any time the Leaking Underground  Storage Tank Trust Fund
    has insufficient funds to pay all of the claims out of such Trust
    Fund at such time,  such claims shall, to the extent permitted
    under paragraph (1), be paid in full in the order in which they
    were finally determined.

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                             226

  (b) CLERICAL AMENDMENT.—The table of sections f6:r subchapter
A of chapter 98 of such Code is amended by adding after the item
relating to section 9507 the following new item:
"Sec. 9508. Leaking Underground Storage Tank Trust Fund."
  (c) EFFECTIVE DATE.—The amendments made by this section shall
take effect on January 1, 1987."

                              O

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Appendix G
Guidance and Policy Memoranda

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                                   APPENDIX G
                      GUIDANCE AND POLICY MEMORANDA
     MEMORANDUM                                                         PAGE

Releasing Identities of Potentially Responsible                                     G-l
Parties in Response to FOIA Requests.
Gene A. Lucero and Kirk F. Sniff.
January 26,  1984.

Participation of  Potentially Responsible Parties                                     G-5
in Development of Remedial Investigations and
Feasibility Studies under CERCLA.
Lee M. Thomas.  March 20,  1984.

Liability of  Corporate Shareholders and                                            G-l5
Successor Corporations for Abandoned Sites
Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA).
Courtney M. Price.  June 13, 1984.

Policy on Enforcing Information Requests                                         G-31
in Hazardous Waste Cases.
Courtney M. Price.  September 10, 1984.

Procedures for Issuing Notice Letters.                                             G-4 1
Gene A.  Lucero.  October 12, 1984.

Interim CERCLA Settlement Policy.                                               G-55
Lee M. Thomas,  Courtney M. Price, and
F. Henry Habicht, II.  December 5, 1984.

Hazardous Waste Enforcement Policy.                                             G-75
Environmental Protection Agency.
February 5,  1985.

PRP Participation in RI/FS.                                                      G-87
Gene A.  Lucero.  March 27, 1985.

Timely Initiation of Responsible Party Searches,                                    G-89
Issuance of Notice Letters, and  Release of Information.
Gene A.  Lucero.  October 9, 1985.

Policy for Enforcement Actions Against                                           G-93
Transporters under CERCLA.
Gene A.  Lucero  and Frederick F. Stiehl.
December 23, 1985.
                                        G-l

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     MEMORANDUM                                                          PAGE
Potentially Responsible Party Searches.                                            G-97
Gene A. Lucero and Thomas P. Gallagher.
March 27, 1986.

Interim Guidance:  Streamlining the CERCLA                                     G-99
Settlement Decision Process.
J. Winston Porter.
February 12,  1987.
NOTE:    Two additional references which may provide guidance, but are not included
          here are:

              o     Freedom of Information Act (FOIA)

              o     RCRA Confidential Business Information Security Manual, Draft,
                    March 1984
                                        G-2

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         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON. D.C  20460
                            JAN 26 1984
MEMORANDUM

SUBJECT:
FROM
Releasing Identities of Potentially Responsible
Parties in Response to POIA Requests

Gene A. Lucero, Director  (S?fy\fJL H<
Office of Waste Programs Enforcement
                                  Waste
                                 nce Monitoring
          Kirk P. Sniff
          Associate Enforcement Counsel
          Office of Enforcement and Compl
TO:
Directors, Waste Management Division, Regions I, V
Director, Office of Emergency & Remedial Response, Region  II
Director, Hazardous Waste Management Division, Region III
Directors, Air & Waste Management Division,
 Regions IV, VI, VII, VIII
Director, Toxics & Waste Management Division, Region IX
Director, Air & Waste Division, Region X
Regional Counsels - Regions I - X
PURPOSE
     This memorandum  states  the policy of  EPA  for responding to
requests under the  Freedom of  Information  Act  (FOIA)  for  the
names of potentially  responsible parties  (PRPs) at CERCLA sites.

II.  BACKGROUND

     On March 30, 1983, EPA  issued guidance on  releasing  the
identities of potentially responsible parties  under CERCLA.
This guidance provtdetJ  f-or ea-se—toy-case review  and discretionary
disclosure of the identities of PRPs  in certain limited circum-
stances. In. general,  before  the March 30 guidance, EPA did not
release th« names of  PRPs in response to  FOIA  requests.

     On June  28, 1983,  the Federal District Court for the
District of Columbia  decided in Cohen v.  EPA that EPA had not
met  its burden of establishing that disclosing  the identities
of PRPs would harm  the  Agency's enforcement efforts.  The case
involved EPA1s decision to withhold the identities of potentially
responsible parties as  provided by FOIA exemptions under  5
U.S.C. SS552(b)7(A)f  7(C), and 5.

     The court granted  the plaintiff's motion  for summary
judgment on finding that:
                              G-l

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                              -2-

     1. For Bx*mption 7(A) — notice letters are investigatory
records compiled for law enforcement purposes, but EPA did not
establish  if  disclosure   of the notice letters would harm the
investigation.!

     2. For Exemption 7(C) — the identities of the PRPs
who received notice letters does not fall into the category of
a protected privacy interest; and

     3 . For Exemption 5 -- notice letters are not predecisional
documents.

III.  POLICY

     As a result of the Cohen decision and the Administrator's
policy of conducting business in a more open atmosphere, and
in light of the resource demands involved in case-by-case
review of the names of notice letter recipients, the March 30,
1983, guidance has been reevaluated.  The new guidance is set
forth below.

     1.  In response to a FOIA request, EPA will release the
names of PRPs who have received notice letters about a CERCLA sit«.

     2.  An exception to the policy of disclosing the names of
PRPs who received notice letters may be made only when EPA
determines that disclosure of a particular name will cause such
interference with an ongoing enforcement proceeding that
discretionary disclosure is clearly unwarranted.  If EPA decides
to withhold the name of a PRP who received a notice letter, EPA
must support  the conclusion that disclosure will cause substantial
harm to the law enforcement proceeding in writing with concurrence
by the Regional Counsel.  The written documentation may not
consist of general statements; it must include the particular
facts  relating to the specific PRP and site that led to the
conclusion to withhold.

     3 .  The  names of parties who have not yet received notice
letters may be predecisional and therefore exempt.from disclosure
under  Exemption 5 of the FOIA.  These names also may be exempt as
investigatory records under Exemption 7(A).  However, in its
discretion EPA »ay release this material.

     4.  Although EPA usually will release the names of PRPs
only in  response to FOIA requests, the Agency may elect to
release the information on its own initiative in appropriate
circumstances.

     5.  Disclosure of the names of PRPs and the names of sites
does not constitute a waiver of EPA's right to withhold other
 information developed for an enforcement action that EPA determines
 is exempt  from disclosure.  Even if information is exempt from
disclosure under Exemption 2, 5, or 7 of FOIA, EPA has discretion
                              G-2

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                              -3-


to release the information; however, EPA may exercise its discretion
to release the information only after the appropriate Regional Counsel
reviews the information to ensure that disclosure will not interfere
with an enforcement action.

IV. PROCEDURES TO IMPLEMENT POLICY

     EPA Headquarters or a Regional Office should follow the
procedure below to respond to a FOIA request for the names of
PRPs or other information about a CERCLA site.

     1.  Quality assure the list of PRPs regularly and particularly
before sending notice letters to PRPs for a site.  Perform an
in depth quality assurance of PRP lists every 6 months.  Headquarters
will hold Regional Offices accountable for inadequate quality
assurance of PRP information.

     2.  Immediately notify Headquarters whenever a Regional
Office decides, in accordance with the guidance in Item III.2
above, that disclosing the name of a PRP will cause substantial
harm to an enforcement effort.  Regional Offices also should
notify Headquarters if withholding a name is no longer required.

     3.  If additional information is requested about a PRP or
a site, consult with the Regional Counsel for a decision on
whether disclosure will interfere with enforcement at the site.

     4.  Submit the list of names, or names and information, to
the requester with a brief explanation of how EPA defines PRP
for purposes of sending notice letters.

     5.  Include with the list of names the following disclaimer:

         This list represents EPA's preliminary findings on
         the identities of potentially responsible parties.
         EPA makes no assertions that parties on this list
         are liable for any- hazard or contamination at any
         CERCLA site.

     6.  OM the term "potentially responsible party" in
responses to FOIA requests if none of the parties named in a
notice letter has been found liable by a court.

V. FIRST RESPONSE TO FOIA REQUESTS

     Ten working days after the date of this policy, Headquarters
will respond to the current backlog of requests for all PRP names
with the quality assured list.

     Any Regional Office that intends to withhold any PRP names,
as provided by Item III.2 above, must have completed the required
documentation and notified Headquarters before the FOIA response
date. If you have any questions about this policy, contact
Susan Gary Watkins (FTS 382-2032).


                             G-3

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                         WASHINGTON. D.C. 20460
                             MAR 20
MEMORANDUM

SUBJECT:  Participation of Potentially  Responsible  Partie^  in
         ^-Uevelopment of Remedial  Investigations  and  Feasioility
        f Stud ie?xu rider CERCLA
        4 - "  \  — \\
       >%A>_^ V^-	 \\>-_cx^x^i-m
FROM:   ~ Lee M. Thomas, Assistant Administrator
          Office of Solid^/aste and  Emergency  Response
          I    t^T   O~\ ~~1JL^-
          5e«Ttney\. Price, Assistant  Administrator
          Office of Enforcement and  Compliance  Monitoring

TO:       Regional Administrators, Regions  l-X
I.    Introduction

     This memorandum sets forth  the policy  and  procedures
governing participation of potentially  responsiole  parties  (PR?s)
in development of remedial investigations  (RI)  and  feasibility
studies (F3) under the Comprehensive  Environmental  Response,
Compensation, and Liability Act  (CERCLA).  1   It  discusses:

 o the circumstances in which  RI/FS may  be  conducted  by potentially
   responsible parties,

 o the procedures for notifying  potentially  responsible parties
   when the Agency has identified  target  sites  for  the  development
   of RI/FS, and

 o the principles governing PRP  participation  in  Agency-financed
   RI/FS.
1.The Agencyis currently developing  a  comprehensivepolicy
  concerning  EPA participation  in  state-lead  enforcement  under
  CERCLA.  The applicability of  the  RI/FS  policy  to  state-lead
  enforcement actions will be fully discussed in  this forthcoming
  memorandum.
                               G-5

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11.  previous Approaches to PRP Participation in RI/FS

     Under _earl ier policy, the Agency negotiated 
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                               -3-
     Finally,  multiple negotiations concerning each phase of  site
response inefficiently used limited Agency and Department of
Justice resources and personnel.

     In response to these concerns, the Agency estaolished a
policy that precluded potentially  responsible parties  from conduct:;
the RI/F3, unless they were also willing to commit to  conducting
the remedial action.

     The Agency has also identified drawoaoks to  this  approach.
Some potentially responsible parties have wanted  an opportunity
to prepare an RI/FS or participate  in its development.   They  have
been reluctant to accept tne conclusions in the RI/F3  and to
assume responsibility tor conducting cleanup, because  their views
were not reflected  in the Aqency-financed RI/FS.  This  policy
also increased demanas on tne Fun.l, and ran contrary to  the
Agency's preference for timely and  effective private-party response

     In light of these drawbacks,  the Agency has  established  a
new policy concerning the conduct  of KI/FS by ppps.  The Agency
will give potentially responsible  parties an opportunity to
conduct the RI/FS,  consistent with  Agency priorities and vith
new Agency procedures and guidance.  The new approach  will netter
enable the Agency to target its enforcement priorities,  reduce
tne possibility of  unsuccessful or  protracted negotiations wit'i
PRPs, and enhance the quality of private-party RI/FS.

III. Situations where private parties may conduct RI/FS

     Tho Agency will identify sites targeted for  RI/FS  devo lo,:n-nc ,
and give potentially responsiole parties an opportunity  to conduce
tne RI/FS.  The Remedial Accomplishments Plan (RAP) developed by
the Agency identifies candidate sites for enforcement  or Fund-: ina-.c
response, and allocates the resources necessary to undertake
these activities.   The Remedial Accompl isnraents Plan lists all
sites for which RI/FS will be developed.

     Approximately  95 sites from the National Priorities List
have bo-en  identified as targets for development of RI/FS in FY
1384, and about 115 will be identified  for FY 1985.  The Agency
has allocated CERCLA funds for RI/FS for each of  these  sites.
C?A will make availaole a list of  the sites on the Remedial
Accomplishments Plan, and the scheduled daces tor ooligation  of
funds  for RI/FS development by the  Agency at these sites.
Potentially responsible parties will have an opportunity to
conduct the RI/FS for these sites,  provided that  they  respond
before  the scheduled date tor obligation of funds.

     The Agency will not engage in  lengthy negotiations with  PRPs
over whether PRPs will conduct the  RI/FS.  In setting  a  reasonable
negotiating period, the Agency will consider factors specific to
the site, such as tecnnicai complexity  and the number  of parties
involved.  Once funds for an Agency-financed RI/FS have  been
obligated, PRPs will not be allowed to  take over  development  of
the RI/FS.

                              G-7

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                               -4-
     If potentially responsible parties are willing  to  perform  tii
RI/FS, the. Agency will identify the conditions under  which  they
may do so.  To assure that privately-funded RI/FS ara done  quickly
and in a manner that meets the applicable  requirements  of  this
policy, potentially responsible parties will oe expected  to meet
the following conditions:

       1. Where several parties are involved at a site,  they
          must be able to quickly organize themselves  into  a
          representative body to deal with tne Agency as  a  single
          entity.  To facilitate tais process, the Agency  will
          make the names of potentially reaponsiole  oirties
          available on request.  (See guidance trcm Gene  A.  Lucero
          and Kirk Sniff on Release of Names of Potentially
          Responsible Parties in Response  to r'QIA Requests  published
          January 26, 1934).  A single PRP, or an organized  group
          of PRPs, may assume responsini1ity for actual development
          of tne RI /:-' S .

       2. PRPs must agree to follow the scope of work for  the
          Rl/rS developed by the Agency.   Th^- Agency  will  no t
          engage in iengtny negotiations over this n.^ue.

       3. PRPs must demonstrate to the Agency that they  are  aole
          to follow the technical procedures described  i. n  Rerr.ed ial
          Investigat ion and Feasibility Study juiJance  minaais
          currently unuer deve lopmenc . -    ""

     If these conditions are met, the Agenc/ -'ill devote  the
resources necessary to assure the satiscvc" iry >:-.
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                               -5-
     If, in the Agency's judgment,  the  potentially  rospons ID i e
parties da not meet these criteria  (fiat  is,  they  are  ijc  aole
co prope~rTy conduct tne RI/FS)/ tne Agency  will  ,ijc  commit resources
to review the private-party RI/FS.  Instead,  the Agenc/  will
perform the work itself and seek  to recover the  costs  jc  the
PI/FS.  PRPs will be given the ooportanity  to  Discuss  implementation
of the selected remedy at a Later date.

     The Agency normally allocates  the  equivalent of  aoout l.i
work-years for start-up, management,  and  selection  ;> t  r'.-,re
of CERCLA.  Development of or iva to-party  RI/FS will  he s^oj^-ji
co o?A community relations requirements.  •*

     The Agency believes that  this  approach will ennance  tne
prospects for private-party implementation  of  the remedy  and
also provide a mechanism to clean up  additional  sites  in  fie
fjcur?.  As potentially responsible parties become  no re  tamil.ar
with conducting RI/FS under the Remed lal  Invest igat ion anJ
Feasibility Study guidances, and  Ajoncy pe r sonny i TTv^lop  mor;
experience in overseeing and evaluating them,  -ve anticipate  -.nat
it will take less than a full  Agency  workyear  to assure  the
completion of a technically sound RI/FS.  As  a result  }f  f ; i s
experience, EPA will be able to oversee additional  pr i va te I ;, - f i n anceo
RI'FSs with a jiven level of resources  and,  consequent!/,  initiate-
tne response process by private parties at  more  \'PL  sites.

I '/ . Ape 1 icac 1 1 1 ty of Policy

     Tnis policy is prospective.  PRPs  will be allowed to  con.iuct
xI/'FS  for targeted sites on the oasis of  these criteria  wh^n tne
Remed la I Invest igat ion and Feas ib 1 1 1 ty  s t ud y  technical manuals
and an/ other necessary tecnnical nanuaTs a~re  final.   We  anticipate
that  these documents will oe completed  in the  summer of  1934.

     This polfcy will also be  applicable  to sites where  States
have  the lead in managing preparation of  the  RI/FS.  Where possible,
States should be involved in the  determination of whether  PRPs
can properly conduct the RI/FS, and in  review  of the workplan.
States may also assume some responsibility  for oversight of  PRP
conduct of the RI/FS.

4. Requirements are set fortn  in  Community  Relations  in  Super runri;
      Handbook (interim Version,)  Sepce.mcer  1983.
                               G-9


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                               -•3 -
                                                   resources
                                                   oeen so
                                                   are free to
                                                   not been
                                                              to
     This policy is applicable to sites that  the Agency  has
identified as targets for RI/FS development in the  Remedial
Accomplishments plan.  The Agency will not provide
oversee and evaluate RI/FS for sites that have not
designated.  While potentially responsible parties
conduct their own RI/FS for other sites which nave
listed as priorities, the Agency does not nave sufficient  resources
to provide assistance or review the RI/FS during their  development.

     This exclusion is designed to allow the Agency to manage
its resources and assure that they are directed towards  sites
that represent the Agency's priorities.  Thus, tne Agency  cannot
review private-party RI/FS for non-targeted sitzas to provide
assurances that the remedy selected by potentially  respc-.nsi.ole
parties will be adequate to meet the requirements of CERCLA.
V.   Interim Policy and other situations for private-party  RI, FS

     Until the RI and FS guidance documents are made  final,
potentially responsible parties may aiso develop  RI/FS  if  tnev
commit to follow workplans for RI/FS that have been prepared  oy
the Agency contractors uncer the supervision of the Agency.   The
Agency will not negotiate the content of these wo r-;p lar.s .

     Implementation of this interim policy  is  it  trie  discretion
the Regions.  Regions may allow ?R?s to conduct RI/FS under
workplans developed by Agency contractors if trie  RI/FS  can "^
conducted without undue disruption to schedules for remediaj.  r?s:
in light of existing commitments Ljr activities to ne _;- Je r ta < .-n
un^er the Fund.  Regions should complete any negotiations  concer-
this interim policy before the Las', month of tne  fiscal  year,  to
assure tnat these negotiations will not interfere vit.h  use of
Funa resources.  Where the State is managing the  development  3f
the RI/FS, this interim policy may be applied at  tne  discretion
of the State.
                                                                   i
     The Agency will sanction private-party RI/FS f jr Sites
are not identified on the Remedial Accomp 1 isnmen 1 3 Plan in
; ther situat ions .
                                                             cnat
     First, private parties may perform the RI/FS  if  tney  also
agree to design and implement the remecy selected  by  tne Agency
for the site.  The Agency will allow private party  ;evelopment
of the RI/FS because the resources that would have  been dedicatjj
to negotiations with potentially responsible parties  for the
remedial design and construction can instead be used  to oversee
and review the privately-conducted RI/FS. Thus, PRPs  may conduct
tne RI/FS  for any NPL site (even if the site is not  listed  in
the Remedial Accomplishments Plan)  if they commit  to  the complete
clean up as well.
                              G-10

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     Second, the Agency will allow a  private  party  RI/FS for
dioxin sites that are active facilities,  where  the  scope of t >e
remedial investigation has been ocmprehens i ve Ly  definei  ':•/ the
Federal government.  The explicit requirements developed oy trie
Federal government — coupled with the  public  interest  co  move
quickly on recently discovered dioxin  sites—warrant  this approach.

VI .  Arrangements for Motice to PRP3

     PRPs will be notified of the opportunity to  perforn the
RI/FS in the following way:

     First, the list of sites targetted  for RI/FS development
and  a schedule for action at those sites  will be  made  availao
It -/ill be accompanied by a statement  that  the Agency  plans  to
conduct RI/FS for the sites.  Any potentially  rosponsiole  parcy
tnat vants
and contaci
funds cor
:I/FS for the sites.  Any potentially  rosponsiole  pare
s to undertake the RI/FS can voluntarily  come  forwarJ
ct the Agency, before  the  scneduled date  to  ooligate
 RI/FS development.
     Second, prior to the scheduled start ot  the  RI/FS,  the
Agency will send notice letters to PRPs  for sites  listed  on  the
Remedial Action Plan.  Notice letters should  be  issued  as  soon
as possible after the completion of the  responsible  parcy  search.
The Letters should normally be  issued at least 60  days  oefcre
the scheduled date for ooligation of Funds  for tne RI/FS~!   ?~R?s
(if multiple generators are involved) snoulJ  therefore  nave
sufficient time to organize themselves ana  initiate  preliminary
contacts and discussions with Agency personnel.   This will  also
ivOiu delay in beginning i Fun 1-t inanced .-
parties that:

        1. Fund-f inanced PI/FS actions aro planned;

        2. The results of the studies wi.ll oe  js^d to selBCt
           a remedy  for the site;

        3. PRPs can meet with Agency personnel to  discuss  tneir
           participation in tne RI/FS;

        4. PRPs may be liable for the costs of the RI/FS  perrorm-.M
           by -the government;

        5. ?RPs will have an opportunity to meet with Agency
           personnel to discuss design and implementation of the
           remedy after completion of the RI/FS.

        6. PRPs may conduct RI/FS if they comply with the conditions
           outlined  in section  III of this policy.
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     The Agency will develop revised Notice Letter guidance  in
the near future that will provide additional detail on  these
requirements.


VII. Regional  Role In RI/FS Development by PRPs

     Regional  review of private-party RI/FS will oe intensive
when this policy is first implemented.  Implementation  will
require the ongoing involvement of the EPA project officer in
tne private-party RI/FS development.  The PRPs must develop a
detailed statement of work and work plans describing the  \ctivit i =
they will undertake at the site, based on the guidance  ^nd the
scope of work  developed by the Agency.  Tho Regions must  arrange
to periodically review the work plans and work performed  as par".
of the RI/FS.   The Regions must assure that PRPs follow proper
chain of custody procedures in testing and sampling, and  that
PRPs keep adequate records to enable the government to  use t:\ose
records as evidence in an enforcement case.  In addition, empLov-;^
of contractors or others who do the work must cooperate wtta unu
be maae available to the government in tne prepar.it i TO  -and trial
of any subsequent enforcement case.

     The Agency will review the completed work product  -»-id jnoose
a remedial alternative that meets all applicable r-s ju i cement s of
CERCLA, and all implementing regulations, policies  in!  juii.ince.
In addition, the Agency retains the rignt to reject PRP HI/FS
and sue PRPs for cost of developing its own Fund-f inanced RI/FS,
if tne RI/FS is inadequate.  As no too earlier, ti;u  ig reemen t to
conduct a private-party RI/FS should oe incorporated into an
administrative order or consent decree.  Section 107 oc CKRCLA
nut nor i^as the imposition of treble damages for failure to comply
witn an Administrative order.  The Agency will develop  2  model
orcer  providing additional detail regarding EPA involvement  in
private party RI/FS development.


VIII.  Private-party Participation in Agency-Financeo  RI/FS

     'Where potentially rssponsible parties do not  actually develop
trvj RI/FS, the Agency will allow private-party involvement in
Fund-financed RI/FS,  if such participation can occur without
undue  delay, expense, or  interference with Agency  RI/FS development
Private parties may possess technical expertise or knowledge
ajout  a site which would  be useful in developing a sound  RI/FS.
Involvement by PRPs  in the development of a Fund-financed RI/FS
may also expedit? site cleanup by identifying and  satisfactorily
resolving differences between the Agency and private parties
that might otherwise be the subject of litigation.
                                     i
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                              -9-


     Potentialiy responsible parties -nay be allowed  to:

      1. Review the contractor's technical wor'< plan;

      2. Have access to the site (it legally  feasible)  to ooserve
         well installation and the collection of samples, and  to
         split savnples where appropriate;

      3. Have access to-raw data and to draft reports;

      4. Have the option to comment on each major phase of  tne  RI/F
         during the conduct of the investigation.

     The final decision whether to permit potentially  responsible
parties to participate  in the Fund-financed Ri/FS (as  well  as
the scope of any participation) rests with the Regions.  This
iecision should be based on the ability of ?R?s to organic?
themselves so that they can participate as a  single  entity,
and the ability of PRPs to participate without undue  interf3rer.ee
with or delay in completion of tne RI/FS, and other  factors
that the Regions determine are relevant.  The Region  ma / tsrninate
PR? participation in RI/FS development if unnecessary  expenses
or delays occur.

     Certain aspects of this policy are not applicable  :mnediately,
and supplementary guidance will be published.  If you  hiv-  ary
questions or comments concerning tnis policy, or ptroolens t.iac
need to be addressed in further guidance to implement  this  :•)!.;•/,
please contact Gene A.  Lucero (332-4314), or  Joan Cros'3  in  -.. s
start ( FTS 332-4829) .

cc:        Regional Counsel
           Regions I-X

           Directors, Waste Management Division
           Reg ion I, V

           Director, Office of Emergency and  Remedial  Response
           Region II

           Director, Hazardous Waste Management Division
           Region [II

           Directors, Air and Waste Management Division
           Regions IV,  VI, VII, VIII, X

           Director, Toxics and Waste Management Division
           Region IX
                            G-13

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USB
3 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
f                 WASHINGTON. DC. 20460
                          JUN 13 1984
                                                     OJflDENTIAL
                                                      COMPUAN-;
   MEMORANDUM

   SUBJECT:
       Liability  of  Corporate  Shareholders and Successor
       Corporations  For  Abandoned  Sites Under the Compre-
       hensive  Environmental Response, Compensation, and
       Liability  Act (CERCLA)                /
   FROM:
   TO:
       Courtney  M.  Price   	
       Assistant Administrator  for Enforcement
         and  Compliance Monitoring

       Assistant Administrator  for _
         Solid Waste  and  Emergency Response
       Associate Enforcement Counsel  for Waste
       Regional  Administrators
       Regional  Counsels
   Introduction

       The following enforcement memorandum, which was prepared
   in  cooperation with the Office of General Counsel, identifies
   legal principles bearing on the extent to which corporate
   shareholders and successor corporations may be held liable
   for response costs that arise as a result of a release of a
   hazardous substance from an abandoned hazardous waste facility.
   In  the discussion section pertaining to each part, the memorandum
   reviews the law on the subject from established traditional
   jurisprudence to current evolving standards.  Although general
   rules of liability are delineated, these principles must be
   carefully applied to the unique fact pattern of any given
   case.

   I.   THE LIABILITY OF CORPORATE SHAREHOLDERS UNDER CERCLA

   Background

       Normally, it is the corporate entity that will be held
   accountable for cleanup costs under CERCLA.  In certain
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                              -2-
instances, however, EPA may want to extend liability to include
corporate shareholders.  This may arise, for example, where a
corporation, which had owned or operated a waste disposal site
at the time of the contamination, is no longer in business.
Trie situation may also occur if a corporation is still in
existence, but does not have sufficient assets to reimburse
the fund for cleanup costs.  There are two additional policy
reasons for extending liability to corporate shareholders.
First, this type of action would promote corporate responsibil-
ity for those shareholders who in fact control the corporate
decisicn-making process; it would also deter other shareholders
in similar situations from acting irresponsibly.  Second, the
establishment of shareholder liability would aid the negotiation
process and motivate responsible parties toward settlement.

     Traditional corporation law favors preserving the corporate
entity, thereby insulating shareholders from corporate liability
Nevertheless, as will be discussed below,  there are exceptions
to this general principle that would allow a court to disregard
corporate form and impose liability under  CERCLA on individual
shareholders.

Issue

     What is the extent of liability for a corporate share-
holder under CERCLA for response costs that arise as a result
of a release of a hazardous substance from an abandoned hazardous
waste facility?

Summary

     The question of whether EPA can hold  a shareholder of a
corporation liable under CERCLA is a decision that must turn
on the unique facts specific to given situation.  Generally,
however, in the interests of public convenience, fairness, and
equity, EPA may disregard the corporate entity when the shareholder
controlled or directed the activities of a corporate hazardous
waste generator, transporter, or facility.

Discussion

     Section 107(a)(2) of CERCLA provides  that any owner or
operator of a facility which releases a hazardous substance
shall be liable for all necessary response costs resulting
from  such a release.  Section 101(20)(A)(iii) of CERCLA clearly
states that the term "owner or operator" as applied to abandoned
facilities  includes "any person who owned, operated, or otherwise
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                              -3-
controlled activities at such facility immediately prior to
such abandonment" (emphasis added).

     In addition, Sections 107(a)(3) and 107(a)(4) of CERCLA
impose liability for response costs on any person who arranged
for the disposal or treatment of a hazardous substance (the
generator), as well as any person who accepted a hazardous
Substance for transport to the disposal or treatment facility
(the transporter).

     The term "person" is defined in CERCLA Section 101(21)
as, inter alia, an individual, firm, corporation, association,
partnership, or commercial entity.  A shareholder may exist
as any of the forms mentioned in Section 101(21).  Therefore, a
shareholder may be considered a person under CERCLA and,  conse-
quently, held liable for response costs incurred as a result
of a release of a hazardous substance from a CERCLA facility
if the shareholder:

        3  Owned, operated, or otherwise controlled activities
           at such facility immediately prior to abandonment
            [CERCLA Section 107(a)(2); Section 101(20)(A)(iii)] ;

        0  Arranged for the disposal or treatment (or
           arranged with a transporter for the disposal or
           treatment) of the hazardous substance (CERCLA
           Section 107(a)(3)] ; or

        0  Accepted the hazardous substance for transport  to
           the disposal or treatment facility selected by  such
           person [CERCLA Section 107(a)(4)].

     Notwithstanding CERCLA's statutory language, courts
normally seek to preserve the corporate form and thus maintain
the principle of limited liability for its shareholders.  \_/
In fact, fundamental "to the theory of corporation law is
the concept that a corporation is a legal separate entity,  a
legal being having an existence separate and distinct from
    See Pardo v. Wilson Line of Washington, Inc., 414 F.2d
    1145, 1149  (D.C. Cir. 1969); Krivo Industrial Supply Co.
    v. National Distillers & Chem. Corp., 483 F.2d 1098,
    1102 (5th Cir. 1973), modified per curiam, 490 F.2d 916
    (5th Cir. 1974); Homan and Crimen, Inc. v. Harris,  626
    F.2d 1201,  1208 (5th Cir. 1980).
                              G-17

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                              -4-


that of its owners." £/  This concept permits corporate           ^^
shareholders "to limit their personal liability to the extent
of their investment." _V  Thus, although a shareholder may
be considered a "person" under CERCLA (and therefore subject
to the Act's liability provisions), the application of corporate
law would tend to shield the shareholder from such liability.

     Nevertheless, a court may find that the statutory language
itself is sufficient to impose shareholder liability notwith-
standing corporation la*.  V  Alternatively, to establish
shareholder liability, a court may find that the general prin-
ciples of corporation law apply but, nonetheless, set aside
the limited liability principle through the application of
the" equitable doctrine of  "piercing the corporate veil."

     Simply stated, the doctrine of piercing the corporate
veil refers to the process of disregarding the corporate
£/  Krivo Industrial Supply Co. v. National Distillers & Chem.
    Corp.,  483 F.2d 1098, 1102 (5th Cir. 1973), modified per
    cunam, 490 F.2d 916 (5th Cir. 1974).

V  id.

I/  See United States v. Northeastern Pharmaceutical and
    Chemical Company, Inc., et al. , 80-5066-CV-S-4,  memorandum
    op. (W.D. Mo., 1984).  In Northeastern Pharmaceutical the
    district court noted that a literal reading of Section
    101(20)(A) "provides that a person who owns interest in a
    facility and is actively participating in its management
    can be held liable for the disposal of hazardous waste."
    (Memorandum op. at 36.)  The court went on to find that
    there was sufficient evidence to impose liability on one
    of the defendants pursuant to this statutory definition
    of "owner and operator," and the Section 107(a)(l) liability
    provision of the Act.  The fact that the defendant was a
    major stockholder did not necessitate the application of
    corporate law, and thus the principle of limited liability:
    "To hold otherwise and allow  [the defendant] to be shielded
    by the corporate veil  'would frustrate congressional purpose
    by exempting from the operation of the Act a large class
    of persons who are uniquely qualified to assume the burden
    imposed by  [CERCLA].'"  (Memorandum op. at 37, citation
    omitted.)
                             G-18

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                              -5-


entity to hold either corporate shareholders or specific
individuals liable for corporate activities. V

     In order to determine whether to disregard corporate form
and thereby pierce the corporate veil, courts generally have
sought to establish two primary elements. £/  First, that the
corporation and the shareholder share such a unity of interest
and ownership between them that the two no longer exist as
distinct entities. V  Second, that a failure to disregard the
corporate form would create an inequitable result. £/

     The first element may be established by demonstrating
that the corporation was controlled by an "alter ego."  This
would not include "mere majority or complete stock control,
but complete domination, not only of finances, but of policy
and business practice in respect to the transaction attacked
V  See Henn, LAW OF CORPORATIONS SS143, 146 (1961).  This
    doctrine applies with equal force to parent-subsidiary
    relationships (i.e. ,  where one corporation owns the
    controlling stock of  another corporation).

£/  Generally, courts have sought to establish these elements
    in the context of various theories, such as the "identity,"
    "instrumentality," "alter ego," and "agency" theories.
    Although these terms  actually suggest different concepts,
    each employs similiar criteria for deciding whether to
    pierce the corporate  veil.

~l_/  See United States v.  Standard Beauty Supply Stores,
       _  561 F.2d 774, 777 (9th Cir. 1977); FMC Fin.  Corp.
       Murphree, 632 F.2d 413, 422 (5th Cir. 1980).

    See Automotriz Del Golfo de Cal.  S.A. v. Resnick,  47 Cal.
    2d 792, 796, 306 P.2d 1 (1957); DeWitt Truck Broker, Inc.
    v. W. Ray Flemming Fruit Co., 540 F.2d 681, 689 (4th
    Cir. 1976).  Some jurisdictions require a third element
    for piercing the corporate veil:  that the corporate
    structure must have worked an injustice on, or was the
    proximate cause of injury to, the party seeking relief.
    See e.g., Berger v. Columbia Broadcasting System,  Inc.,
    453 F.2d 991, 995 (5th Cir. 1972), cert, denied, 409
    U.S. 848, 93 S.Ct. 54, 34 L.Ed.2d 89 (1972); Lowendahl
    v. Baltimore & O.R.R., 247 A.D. 144, 287 N.Y.S. 62, 76
    (1936), aff'd 272 N.Y. 360, 6 N.E.2d 56 (Ct. App.  1936),
    but see, Brunswick Corp. v. Waxman, 599 F.2d 34, 35-36
    (2d Cir. 1979).
                             G-19

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                               -6-
 so that the corporate entity as to this transaction had at the
 time no separate mind, will or existence of its own." V

      In analyzing this first element, courts have generally
 considered the degree to which corporate "formalities have
 been followed [so as] to maintain a separate corporate iden-
 tity." 1Q/  For example, the corporate veil has been pierced
 tn instances where there had been a failure to maintain adequate
 corporate records, or where corporate finances had not been
 kept separate from personal accounts. *V

      The second element of the test is satisfied when the
 failure to disregard the corporate entity would result in
 fraud or injustice. ££/  This would occur,  for example, in
 cases where there has been a failure to adequately capital-
 ize for the debts normally assocated with the business
 undertaking, j-_V or where the corporate form has been employed
 to misrepresent or defraud a creditor. I4/
 V  Berger v. Columbia Broadcasting System, Inc., 453 F.2d
     991, 995 (5th Cir. 1972), cert, denied, 409 U.S. 848,
     93 S.Ct. 54, 34 L.Ed.2d 89 (1972).

££/  Labadie Coal Co. v. Black, 672 F.2d 92, 96 (D.C. Cir.
     1982) ; See DeWitt Truck Broker, Inc. v. W. Ray Flemming
     Fruit Co., 540 F.2d 681, 686 n. 14 (collecting cases)
     (4th Cir. 1976).

ll/  Lakota Girl Scout C.,  Inc. v. Havey Fund-Rais. Man., Inc.,
     519 F.2d 634, 638 (8th Cir. 1975); Dudley v.  Smith, 504
     F.2d 979, 982 (5th Cir. 1974).

12/  some courts require that there be  actual fraud or injustice
     akin to fraud.  See Chengelis v. Cenco Instruments Corp.,
     386 F. Supp 862 (W,D.  Pa.) aff'd mem., 523 F.2d 1050 (3d
     Cir. 1975).  Most jurisdictions do not require proof of
     actual fraud.  See DeWitt Truck Brokers v. W. Ray Flemming
     Fruit Co., 540 F.2d 681, 684 (4th  Cir. 1976).

W  See Anderson v. Abbot, 321 U.S. 349, 362, 64  S.Ct. 531,
     88 L.Ed. 793 (L944); Machinery Rental, Inc. v. Herpel
     (In re Multiponics, Inc.), 622 F.2d 709, 717  (5th Cir.
     1980).

14/  See FMC Fin. Corp. v.  Murphree, 632 F.2d 413, 423 (5th
     Cir. 1980).
                              G-20

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                              -7-
     In applying the dual analysis, courts act under consider-
ations of equity; therefore, the question of whether the
corporate veil will be lifted is largely one of fact, unique
to a given set of circumstances.  However, the substantive
law applicable to a case may also have great importance.  For
Example, in applying state corporation law, state courts have
been generally reluctant to pierce the corporate veil. 15/
Federal courts, however, in applying federal standards, Tave
shown more willingness to disregard the corporate entity and
hold individuals liable for corporate actions.
     In many instances federal decisions do draw upon state
law and state interpretations of common law for guidance. 1
However, federal courts that are involved with federal
question litigation are not bound by state substantive law
or rulings. 1!V  In such cases, either federal common law
     see discussion in Note, Piercing the Corporate Law Veil;
     The Alter Ego Doctrine Under Federal Common Law, 95
     Harvard L.R. 853, 855  (1982).

     it is well settled that a corporate entity must be dis-
     regarded whenever it was formed or used to circumvent
     the provisions of a statute.  See United States v. Lehigh
     Valley R.R., 220 U.S. 257, 259, 31 S.Ct. 387,  55 L.Ed.
     T58(1911); Schenley Distillers Corp. v. United States,
     326 U.S. 432, 437, 66 S.Ct. 247, 90 L.Ed. 181  (1945);
     Kavanaugh v. Ford Motor Co., 353 F.2d 710, 717 (7th
     Cir.  1965); Casanova Guns, Inc. v. Connally,  454 F.2d
     1320, 1322 (7th Cir. 1972).

     See Seymour v. Hull & Moreland Eng'g, 605 F.2d 1105 (9th
     Cir.  1979); Rules of Decision Act, 28 U.S.C.  S1652 (1976).
     Generally, federal courts will adopt state law when to
     do so is reasonable and not contrary to existing federal
     policy.  United States v. Polizzi, 500 F.2d 856, 907 (1974)
     See also discussion in note 19, infra.

18/  UNITED STATES CONSTITUTION art. VI, cl. 2.
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                           -8-
or specific statutory directives may determine whether or not
to pierce the corporate veil. ^-9/
     See Anderson v. Abbot, 321 U.S. 349, 642 S.Ct. 531, 88
     L.Ed. 793 (1944); Town of Brook line v. Gorsuch, 667 F.2d
     215, 221 (1981).  For a general discussion of federal
     common law and piercing the corporate veil see, note 15,
     supra.  The decision as to whether to apply state law or
     a federal standard is dependent on many factors:

          "These factors include the extent to which:  (1) a
          need exists for national uniformity; (2) a federal
          rule would disrupt commercial relationships  predicated
          on state law; (3) application of state law would
          frustrate specific objectives_of the federal program;
          (4) implementation of a particular rule would cause
          administrative hardships or would aid in administrative
          conveniences; (5) the regulations lend weight to the
          application of a uniform rule; (6) the action in
          question has a direct effect on financial obligations
          of the United States; and (7) substantial federal
          interest in the outcome of the litigation exists.

          Even with the use of these factors, however, whether
          state law will be adopted as the federal rule or
          a unique federal uniform rule of decision will be
          formulated remains unclear.  The courts have failed
          to either mention the applicable law or to state the
          underlying rationale for their choice of which law to
          apply."  Note, Piercing the Corporate Veil in Federal
          Courts; Is Circumvention of a Statute Enough?, 13 Pac.
          L.J. 1245, 1249 (1982) (citations omitted).

     In discussions concerning CERCLA, the courts and  Congress
     have addressed several of the above mentioned factors.
     CERCLA.  For example, the need for national uniformity to
     carry out the federal superfund program has been  clearly
     stated in United States v. Chem-Dyne, C-l-