OSWER Directive 9834.6
POTENTIALLY RESPONSIBLE PARTY SEARCH MANUAL

                   FINAL REPORT



                     Prepared for

    US. ENVIRONMENTAL PROTECTION AGENCY
         Office of Waste Program* 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 Gent
202/382-4819
                         U
               .en /v:c- icy
                                                  - 16 70

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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/Office:

Mail Code:

Address:
                                      11

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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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                             TABLE OF CONTENTS


Section                                                                      Pace


PREFACE                                                                      i
ACKNOWLEDGEMENT                                                          I
PRP SEARCH MANUAL UPDATE FORM                                          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

              3.1.1      Agency Record Collection and File Review	  11
              3.1.2      CERCLA  I04(e) Lctters/RCRA 3007 Letters	  17
              3.1.3      Financial  Status	20
              3.1.4      History of Operations at the Site	24
              3.1.5      Interviews with Government Officials	28
              3.1.6      PRP Name and Address Updates  	32
              3.1.7      PRP Status/PRP History	34
              3.1.8      Records Compilation	38
              3.1.9      Report Preparation	41
              3.1.10     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)
              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
 Page

.  . 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
                                                             Baseline
                                                            PRP Search
                                      General
                                   Notice Letters
                                   RI/FS Special
                                   Notice Letters
                                      RI/FS
                                    Negotiation
                                    PRP RI/FS
                                   RD/RA Special
                                    Notice Letters
                                     Record of
                                     Decision
                                      RD/RA   H
                                     Negotiation  H
                                     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 Rcauthorization 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:

              Number 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 arc 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
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
PROBLEMS/RESOLUTIONS
          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.
16

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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

     o
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 I04(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 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?
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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.
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 mortgages, loans, and liens 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 corporations 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.
23

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

          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.
PROCEDURES
Initial Information
Needs
0
o
Original List of
PRPs
Degree of Detail
Needed in
Updated List

Process
0
0
0
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.
                                         32

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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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                          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.
                                        38

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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.
37

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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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                                       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.
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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)
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                                        Develop a thorough understanding of
                                        available research tools and information.

                                        Identify specific relevant sources to be
                                        referenced in report.
Process
     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

o    Present interview results.

o    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

o    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.

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

o    Summarize all research and develop
     conclusions.

o    Make specific recommendations for
     additional PRP research, where appropriate.

o    Provide a list  of referenced documents.

o    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.

o    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.

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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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                                        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.
Process

o
Obtain
Subcontractor
o    Oversee Work

o    Prepare
     Ownership
     History
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 jnf ormation 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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                                 Performing WastlStream Comparisons

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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.
     Gather
     Background
     Information
     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
          Gather background information on the site,
          including:

               Site location and size
     Obtain Current
     Photograph
                                             Duration of site operation
     Evaluate
               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 NEAR.  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 (e)(3)(A) that may be considered when preparing an
NEAR.  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 are 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 Fiorc
     of OECM at FTS 382-3105.
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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
          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.
                                        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.
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
                                    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.
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.
     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 PL

         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
     Process

     o    Obtain Access to
          SETS

     o    Submit List of
          PRPs

     o    Obtain PRP
          Information
Before SETS can be accessed, the researcher must
identify the complete names of the identified PRPs.
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 dwner 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
                                         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.
               t
     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.
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 wastewatcr 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 informatiol
                                                 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 3.2.11).

                                             Compare  types of wastes generated by the
                                             various industries with the list of
                                             contaminants found at the site and
                                             establish  causal relationships.
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

     o
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
                                   o    Determine how the database is to be used and
          All Relevant
          Documents
          Requirements
o    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

o
Number
Documents

Create Document
Coding Forms
o -  Select Key Words
               r
o    Organize
     Documents

o    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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                                      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.

                                      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
    • 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.
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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.
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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.
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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

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          "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

o    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-excced ceiling on costs
          unless first notified.
 99

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                                            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 "comparables" (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.
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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
A hand-held numbering machine that will stamp
consecutive numbers. Useful when assigning
reference or index numbers to a set of documents.
Bill of Lading
A receipt issued by a carrier to a shipper listing
the goods received from the shipper for shipment.
CERCLA
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
Conditional Sales Contract
dBASE III
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.

A contract between buyer and seller, where the
seller reserves title to the  property until the buyer
fully  pays for the property.

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.
Death Certificate

Declaration of Trust
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

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

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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.

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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 HRS, 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.
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Remedial Action
Remedial Investigation/
Feasibility  Study (RI/FS)
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.

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-Scene 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

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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
Schedule of Beneficiaries
A provision in a deed limiting certain uses of the
property.

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
Reauthortzatlon 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 parteis for conducting

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Title Insurance
Trustee Certificate
remedial response actions.  The new law increases
Superfund to $8.5 billion over the next five years
and broadens the fund's tax base.

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.

A written acknowledgment that certain land is in
trust and that a certain person is trustee.
Warranty Deed
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.
Windshield Survey
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.
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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
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                             ACRONYMS (Continued)
QC
RA
RCRA
RD
REM
RI
ROD
SARA
SDWA
SEC
SETS
SFFAS
SI
SIC
SW
TES
TSCA
UCC
Quality Control
Remedial Action
Resource Conservation and Recovery Act
Remedial Design
Remedial Planning
Remedial Investigation
Record of Decision
Superf und Amendments and Reauthorization Act
Safe Drinking Water Act
Securities and Exchange Commission
Site Enforcement Tracking System
Superf und Financial Assessment System
Site Investigation
Standard Industrial Classification
Solid Waste
Technical Enforcement Support
Toxic Substances Control Act
Uniform Commercial Code
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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 0    Title Search (Hours in parentheses reflect subcontracted title research by title company.  These
           hours are a portion of the total hours listed).
     a-0    Simple Title
           Search

     b.Q    Complex Title
           Search
     e-0
Unknown Title
Search
    d.(]    Regular copies
           of recorded
           instruments
           (deeds, lea
           mortgages)
30-100
(5-50)

110-225
(50-100)

4S-3SO
(10-150)
                        Included
                        above
Site involves leu 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.
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                                     POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
        Task
    e.fl    Certified copies
           (deed*, leases,
           mortgage*)

    f.Q    Chain of Title
LABOR HRS
  Rang*
  Contractor
  Included
  above

  20-40
                                                        TASK SELECTION CRITERIA/CONDITIONS
Obtain certified copie* if litigation is expected and
case attorney requires certified copies for court
admissibility. (Usually costs about $0.50 - 1.50/page.)

A chronological list of title instruments for
quick reference to title transactions over time.
    g.fl    Property History
           Narrative
  30-150
Requested for complex sites when a detailed narrative
description of property history would assist case
development.
3.1.5  Q    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   Q   Records
           Compilation
  90-500
3.1.4   Q   History of
           Operations at
           Site
3.1.7  0   PRP Status/
           PRP History
 3.1.6  Q   PRP Name and
           Address Update
 3.1.3  0   Financial Status

     a.Q   Develop financial
           information for
           public companies.
         l.fl    Known PRP
                (attach list
                of names and
                addresses).
   30-150
   0.5-5/
   PRP
   0.6-6/PRP
   J-100/
   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 address 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, mergers, and name changes.
 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 assets of all other PRPs.
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                                    POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
                                LABOR HRS
                                  Range
        2.[]    Contractor-
               identified PRPs.
                                                        TASK SELECTION CRITERIA/CONDITIONS
    b.(]    Develop financial         2-100/
           information for           PRP
           private companies
           or individual*.
         Q   Use Private
             Investigator

    e.fl    Financial                100- ISO/
           record audit             PRP
                                                        This talk can provide PRP information such a*
                                                        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(«)/        1-10/
           RCRA 3007(c)           letter
           Letters
3.1.9  Q    Report                  50-300
           Preparation
3.2.1  []    Aerial Photographs       10-100
3.2.2   0    CERCLA Subpoena      New task
           Authority
3.2.3  0   Field Survey
3.2.4   0
                                   40-200
                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):
                                                         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.

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.
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                                     POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
         Task
3.2.5  []    Private
           Citieen/PRP
           Interview
LABOR HRS
  Range
  1-20/
interview
                                                        TASK SELECTION CRITERIA/CONDITIONS
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   0   SETS
  0.5-S/
  PRP
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.  This task should be completed
when no other information is available.
3.2.8   Q   Site Sampling
   20-400
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   Q   Industrial Survey
   40-100
 3.2.10 Q    Wast* Stream
           Inventory
 3.2.11 Q    Process Chemistry
           Analysis
 3.2.12 Q   Correspondence
           Tracking
           Databases
   40-400
   1-5/PRP
   200-500
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.

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 task is generally
performed after an industrial survey and a waste
stream inventory. This task attempts to link
industries with wastes at a site.

A database is created to keep track of PRPs sent
letters (Notice or Information), whether they responded,
 and other information as specified by EPA. Computerised
databases should be considered for cases with a large
 number of PRPs.
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                                    POTENTIALLY RESPONSIBLE PARTY SEARCH CHECKLIST
         Tuk
LABOR HRS
  Range
3.2.13 []    Inventory Databases ,

       l.[]    With key words
       2.Q    Without key words
  500-1500
  250-1000
                                                        TASK SELECTION CRITERIA/CONDITIONS
A computer-based information management system is
developed to organice and permit quick retrieval of
document* 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 []    Transactional
           Databases
3.2.15 (]    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 site
compliance status for a specified period of interest
focusing on activities and parties involved with
hasardous wastes.
3.2.16 []    Financial
           Assessment
  70-HO/
  PRP
This task provides a more detailed analysis of a
PRP's financial situation than the financial status.
3.2.17 []    Generator
           Ranking
3.2.18 0    Property
           Appraisal
  20-100
  50-200/
  site
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 a PRP which may
have value.  Appraisal may focus on contaminated
state or post-remedial state.
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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
                    t
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

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          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-2

-------
   BE  SURE XAttE.  BUSINESS  AND
Tl ADDRESS ttATCH  YOUR FILE.
                                      AXSUEF.IXG
                                       IX2UIRY

              rrr?
 ,r ^CUKSO-iaAILL ,A.IPO*.I.^^ L;*v«/-«i?.*.>? '*'*O'•
       DUXS'  08-737-2512
 B-D CHEnTCAL CO  IXC

 699 DEXARGO KARKET
 AND BRAXCH(ES) OR DIVISIOXCS)
 DZXVER  CO  80216
       TEL: 303 296-3800
                                      DATE  PRIXTED
                                      KAY  23 1986

                                      HFG  CUSTOH
                                      CHEKICALS

                                      SIC  XOS.
                                      28 69   51 61
 CHII7  IXECUTIVI:  BRUCI HAYXI  XELSOX,  PRES
                                       RATIXG

                                       STARTED
                                       PAYMENTS
                                       SALES

                                       WORTH  F
                                       EHPLOYS
                                       HISTORY
                                       FIXAXCIXG
                                       COXDITIOX
                                       TREXB
                                                            DD3

                                                            1976
                                                            SEE  BELOW
                                                           S650-750.000
                                                            (PROJ)
                                                            suo .675
                                                            10(10  HERE)
                                                            CLEAR
                                                            SECURED
                                                            FAIR
                                                            UP
PAYHEXTS
REPORTED
 04/86

 02/86
 01/86
 12/85
 1 1/85
 09/85
 07/85
 (Amounts
PAYIXG
RECOB.D
nay  b«
            (002)
            P?t
            Ppt
            Ppt
            Slow 30-60
            Slow 30
            (009)
            Slow 20
rounded
  HIGH
 CREDIT

    100
  2500
    100
  1000
   750
    50
   500
   250
   250
  1000
                                       to
nearest
 xou
 OWES

 -0-
 -0-
  50
1000
 -0-
 -0-
 -0-
 -o-
 -0-
 -0-
figure
  P» e» w«
  A»4 ^
  DUE

  -0-
  -0-
  -0-
  -0-
  -0-
  -0-
  -0-
  -0-
  -0-
  -0-
                                                          in  prescribed
                                                           SELLING
                                                            TERKS
                                     X30
                                     X30
ranges)
    LAST  SALE
     WITHIN

    6-12  Hos
    1  no.
    1  no
    2-3 ttos
    6 - L2  nos
    6-12  nos
    6-12  nos

    6-12  nos
    2-3 nos
 'UPDATE
 03/11/86
              Payment  experiences  reflect  how bills are met in  relation to the terms granted
         In some  instances  payment beyond terms can  be the result  of disputes over  merchandise
         skipped  invoices etc.
                 In  a communication received 7eb  21  1986  and signed  by Bruce
            Xelson Pres feb  15  1936, it  uas indicated:
            Sales are now S661,590 yearly.
            Profits  for the  past six months ueze  up.
                 The present net worth is  $90,000.
 03/11/86
 riXAXCE
  x A  FIXAXCIAL SPREAD SHEET  OF COHPARATIVES, RATIOS, AXD  IXDUSTRY  AVERAGES
  * HAY  BE AVAILABLE.   ORDER  A  DUXS FIXAXCIAL PROFILE VIA  YOUR DUXSPRIXT
  * IERHIXA1 OR LOCAL  D£B OFFICE
 09/23/85
                                                 Fiscal
                                            Haz 31  1985
                                                121,836
                                                 61 ,693
                                                    1 . 97
                                                 60,1U3
                                                 11,680
                                                 U0,675
            w^.»                               59U.708
                                                 21 .5414
                 fiscal statement dated  HAR 31  1985:
            Cash               s          11,696    A,ccts
            Accts Rec                   62,708    Contz
            Inventory
           Cuzr Assets
           Cuzz Liabs
           Current  Ratio

           Other Assets
           Hozth
           Sales
                         _ .  I 7 O J •
                      96    A,ccts Pay         *
                  .,..,,08    Contracts  Payable
                  U7,«32    Taxes
                                                                              55,825
                                                                               3,000
                                                                               2,858
             Curz  Assets
           Fixt fi  Equip
           Other Assets
                                        121 ,836
                                          9.217
                                          2,463
                              Curz Liabs •
                            Xotes Payable
                            CAPITAL  STOCK
                            P.ETAIXZD ZAZXIXGS
                                                                   61 ,693
                                                                   28,685
                                                                   1 1 ,M09
                                                                   31,729
             Total  Assets       .      133,516      Total                    133,516
              Prom  PEB  01   1984  to  MAR  31  1985  annual  sales  $594,708;  cost of gooes sol
         $257.752.   Gross  profit  $236,956;   operating   expenses  $2,15,412.    Net   incor
         521.544.  Monthly rent $1,600.
              Fire insurance on mdse  &  fixt S bldg $1,000,000.
              Prepared  from- statement(s) by Accountant •' Carol C Campbell.  Prepared from book
                                                                          ICOXIIXUED)
T»IS
        »U«««!»MID PURSUANT TO CO*T««CT '0«
                                  flCLUS'Vt USl O»
                                               SU1*C«H!» ** Out **CTO* TO COMSIOt* IN
I«SU««MCI M4««CTIMC 0* OTMfl IUSIM«SS OtCISIONS CONTAINS IM'0*U.IT1OM COMVILCO '«OM JOU«CIS WHICH OUH 4 IKAOStRf IT INC. DOtS NOT CO«t«Ol •-
WMOSt INPO*M«TION UNLESS O1«»»W!Sl INOICAT(0 IN TM( «t»O«T «»S NOT IIIN V(HiriEO IN »U«NI»«INC THIS RtPODT OUN 4 •«*OST»efT. INC  '» «O
 ASSUMCS ANT »AHT Or TxC UStM'S •USINCSS DISH.
 SNAU. NOT K tusu ra* ANT LOSS o« INJU«T w
                             OOtS NOT GUABANTtt TM( ACCUHACT COMPICTINCSS 0* TIMdlNtSS Of TMI IN'OHMATION ••OVIOC3
                                «ciuttiNC '*<>* COWTIMCOCIIS UTONO ITS CONTROL o« ••o«

-------
   B-D  CHiniCAL  CO IXC
   DIXYII co
                                                                   Paae 2
(Cont'd) without
                                                 — 0 —
              Item worth shown in summery 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  end 1957;   ant
         due other.                                      .
              On  SEP  23   1985  Bruce  Mayne  Nelson,  president,  submitted the  above figures.
              He   submitted    the   following   partial   estimates    dated   SEP   23    1985:
                 Projected  annual sales  are *  650-750,000.
              Bruce  Mayne  Nelson  stated  that  sales  for the 5 months  ended  Aug 1985 were ur
         5-1 OJf compered 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  1868611 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 wes printed.
HISTORY
09/23/85
  BRUCE VAYXE  XE1SOX, PRES
  DIRZCTORCS):   THE  OFflCERCS)
     Incorporated  Colorado   Mar  1983.
common stock, no par value.
     Business started 1976 by Bruce Mayne Nelson individually.
is owned by Bruce Mayne  Nelson.
     BRUCE   WAYNE   NELSON   born  1956.    1976  and  continue
                                                    Authorized  capital  consists of 50,000 sharer
                                                                           10OX of  capital  steel

                                                                            active  with  subjaet
OPERATIOX
09/23/85
     Manufactures custom  chemicals.
Terms are net 30 days.  Has  150  accounts.  Sells to  major  oil   companies.    Territor*
sUnited States.
Nonseasonal.
     EMPLOYEES:  10  including o-fficers.  10 employed here.
     FACILITIES:   Rents   7.500  sq.  ft. in one story brick and  cinder block building i-
good condition.  Premises neat.
     LOCATION:  Industrial section on side street.
     BRANCHES:  Operates  a branch  storage  warehouse  of  1,500   square  feet  at  80
         Denergo Market,  Denver,  CO.
           05-23C9AO
/22)
                                 00000
                          067
                                                                                 082
H
               »UMUANT TO CONTRACT JOB TN« IICLUSIVt US( 0» TM| SUtSC'Hf* AS OM »ACTO" TO CONSIOf• I" «""V;TI°" "''".I*"!'.
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               ISS OtM(*WISt INOICATCO IN TNf M»O«T "AS NOT tCIN Vt«l»llO  IN »U«NI»MINC THIS NfPODT OUN » MAOSTIKT  INC IN MO *•'
               \* ..«••• K>._...___ _._ „_ __ __ ..... .«..._...•_• m^r &«<•*!•>«•••  ^AaaaieTVeTMBTCe] As) TtUeTL !•!•*•* nft* YMtf IMfONMATlOM "QVIOCO AN'
THIS *tfO»T rUMMISMCO
INSUN4MCC. M««KCTING 0*
""•OSt INFORMATION  UMLISS
issuMCi »«T »»«T or TK«  us(ns IUSINISS •is  oois NOT cu»«»NTtc
*«*U, NOT It IIACU to* ANT LOSS 0« INJU«T WMATfVI* •ISUI.TINC
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COM'IN6(MCICS
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                                                                                - .^_u..._u
                                                                            o» T« ,N»O«M»T.ON
                                                                            ««OV.ICI»Ct-

-------
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-------
                        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 GeneraFs Office
     Water Resources Board
     Soil Conservation  Board
     Bureau of Mines

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

(2)   Local Citv/Countv 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 mcmos
(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

-------
(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

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

     b.    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 scoicntific 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

-------
(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

-------
                            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

-------
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

-------
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

-------
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
          0    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)


          o    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:


          o    Facility name


          o    Address, telephone number


          o    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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99th Congress  1       rnvMrrrFi? PRIISTT           S P*r
 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 J. GOVXKNMENT PRINTING OFFICE
 65-705 O              WASHINGTON : 1987
        For sale by the Superintendent of Document*. Confrcational 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 Island          LLOYD BENTSEN, Texan
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, Minneaota         FRANK R. LAUTENBERG. New Jeraey
                        BAJLKY GUAM, Staff Director
                     Lot O. FULLXB, 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-Usesoffund	    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	1	    83
    122—Settlements	    90
    123—Reimbursement to local governments	   100
    124—Methane recovery	   100
    125—Section  3001(bX3XA)(i) waste	   101
    126—Indian tribes	   101

  TITLE II—HAZARDOUS SUBSTANCE RESPONSE REVENUE ACT OF 1980

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

    SUBTITLE A—IMPOSITION or TAXIS ON PETROLEUM AND CERTAIN CHEMICALS

Section: 211—Imposition of taxes	   102

  [SUBTITLE B—ESTABLISHMENT or HAZARDOUS SUBSTANCE RESPONSE TRUST FUND

[Section:
    [221—Establishment of hazardous substance response trust fund	   113
    F222—Liability of United States limited to amount in trust fund	   114
    [223—Administrative provisions	  114 J

                SUBTITLE C—POST-CLOSURE TAX AND TRUST FUND

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

                 TITLE m—MISCELLANEOUS PROVISIONS

Section:
    301—Reports and studies	   117

                                  (in)

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                                   IV
Section—Continued
    302—Effective dates, savings provision	   123
    IT303—Expiration, sunset provision	  1231
    304—Conforming amendments	   123
    305—Legislative veto	   124
    306—Transportation	   125
    307—Assistant Administrator for Solid Waste	   125
    308—Separability	   126
    309—Actions under Staff law for damages from exposure  to hazardous
          substances.:	   126
    310—Citizen suits	   127
    311—Research, development, and demonstration	   128
    312—Lave Canal property acquisition	   136

                    TITLE IV-POLLUTION INSURANCE

Section:
    401—Definitions	   137
    40i—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 REAUTHOR1ZA-
  TION  ACT  OF  1986  WHICH  DO  NOT  AMEND  PUBtfC  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 HI-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, doctors, 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 n—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 term]—
      (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
    Actm.
      (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
     rinking water by one or more individuals [;J.
                              (1)

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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 [;T.
  (9) The term "facility" means (A) any bunding, structure, in-
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-

-------
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 T;].
   C(ll) 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 Fund" means the Hazardous
Substance Superfund established by section 9507 of the Internal
Revenue Code of 1986.
  (12) The term  "ground water" means  water in & 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[;J.
  (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 seasQ;}.
   (16) The term  "natural resources" means land, fish, wildlife,
biota, air, water, ground water,  drinking water supplies, and

-------
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 ri.
  (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 (;].
  (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 as an inde-
pendent contractor  during such transportation, (ii) 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

-------
any release  at  such disposal  or  treatment facility resulting
from circumstances or conditions beyond its control [;].
  (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
bodyC;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,

-------
action taken under section 104(b) of this Act, and any emergen-
cy assistance which may be provided under the Disaster Relief
Act of 1974 £;].
  (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! 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 term 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 T;].
  (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 ActCil-
  (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
    beauest.
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 lQ7(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
    (AXii), 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'1 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 board.

      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 hot 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 the 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.
   C(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.
  (byi) 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.
  (cXl) 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$1,000,0001 $2,000,000
has been obligated for response actions or [six monthsJ  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.
   C(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  ana 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 I9so.—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, isso, 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&Af.—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 (3XCXV
or paragraph (6) of this subsection (relating to operation and main-
tenance) snail 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.]
  (dXl) 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;
      C(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 (dXl) 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 subpuragraph
    (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)j  (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 heal 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(0 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 trie procedures governing the use of such author-
ity,
  (iyi) 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—
      [(!)] (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)] (B) establish and maintain inventory of literature, re-
    search, and studies on the health effects of toxic substances;
      £(3)TfCJ 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)J (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 ana 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.
  Q) 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 100 haz-
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 (1X0) 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
toxicoiogical 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 toxicoiogical 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 toxicoiogical test-
    ing needed to identify the types or levels of exposure that may
    present significant risk of adverse health effects in humans.
Any toxicoiogical profile or revision thereof shall reflect the Admin-
istrator ofATSDR's assessment of all relevant toxicoiogical 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 oe 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 adeauate  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 suostance.  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 ofATSDR 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'
      dii) such other scientific and technical factors as the Admin-
    istrator ofATSDR 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 ana  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-
   65-705 0-87-2
            »

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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 i05(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 apotential 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 of ATSDR, of the linkage be-
    tween human exposure  to individual  or combinations of haz-
    ardous substances due to releases from facilities  covered oy 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 ofATSDR,
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 ofATSDR 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 ofATSDR 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 ofATSDR, either directly or through cooperative agree-
ments with States (or political  subdivisions thereof) which the Ad-
ministrator ofATSDR 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 >reauired under section 3019(b) of the Solid  Waste Disposal
Act, health studies, registries, and health surveillance.
   (Iff) 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 ofATSDR 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 ofATSDR 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
      (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 throughout 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
    reauirea 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 tne hazard ranking system
referred to in paragraph (8XA) of subsection (a) to determine tne 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; ana
          (B) at which special study wastes described in paragraph
         (2),  (3XAXU) 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.
  (bX7J 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 [$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 (D), 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, orJ5,000,000, 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
    10K14XA) of this title^nto 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 damages 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. 3
  (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.
  (eXl) 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.
  (fYJ>> 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 field 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 1 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. Hie 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
   1 The phrase "or the Indian tribe" wu 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,
      (Bj 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.
  C(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.]  (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
postclosure 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  postelosure  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 n 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 aadress
    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 such
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  arid 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.
(I) 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) Tne 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 rent 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 (aXl) 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 onshore 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.
    5(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.J
  (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(dX3) (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 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(dX3) (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, wnetner 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 ana 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 I; J.
       (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.
  (bYU 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 assessrnents, 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 104(aXD 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 i04(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
    Keauthorization 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).
  (dxl) 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  (aXS) 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 tne 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. 3
   (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. 1
  (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 loss;
      (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-
  •  raent 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) ond 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 su
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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. 3
  (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.
   C(bXDJ (bXl) 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

  C(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(C) Except as  provided in supparagraph (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 or 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.
  F(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).
  C(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.
  T(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

   J(C) Hearings before a member of the Board shall be informal,
   I 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.
   L(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.
   C(F) All decisions  rendered by members of the Board shall be in
writing, with notification to all  appropriate parties, and 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 days  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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                              64

rights, claims, and causes of action for such damages and 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.
  C(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. J
  (d) STATUTE OF LIMITATIONS.—
      (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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  tiori 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 wno 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 ("NfL"), 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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          (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
          (B) 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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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(b)(2).
      (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 Try 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 have  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(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 (aXD 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  SOU 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 regulationspromulgated pursuant 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 1 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. 116. 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 CERCUS 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 meeting at
     or near the facility at issue regarding the proposed plan and re-
     garding any proposed findings under section 121(dX4) (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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  (b) FINAL PLAN.—Notice of the final remedial action plan adopted
shall 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 written  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 enforcement action under section  106 is taken, or
      (3) if any settlement  or consent decree  under section 106 or
     section 122 is entered into,
and if such  action, settlement,  or decree differs in any significant
respects from the final plan, the President or the  State shall publish
an  explanation of the significant differences and the reasons  such
changes  were made.
  (d) PUBLICATION.—For the purposes of this section,  publication
shall include, at a minimum, 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 public 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 and in accordance with rules promulgated
     by the President,  the President may make grants available to
     any group of individuals which may be affected by  a  release or
     threatened release at any facility which is listed on  the Nation-
     al Priorities List  under the National  Contingency  Plan. Such
     grants may be used to obtain technical assistance in  interpret-
     ing  information with regard to  the nature of the  hazard, reme-
     dial investigation and  feasibility study,  record of decision,  re-
     medial design, selection and construction of remedial action,
     operation and maintenance, or  removal action at such facility.
       (2) AMOUNT.—The amount of any grant under this subsection
     may not exceed $50,000 for a single grant recipient. The Presi-
     dent may waive the $50,000 limitation in any case where such
     waiver is necessary to carry out the purposes of this subsection.
     Each grant  recipient shall be required,  as  a  condition of  the
     grant, to contribute at 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.-T-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  lossj 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(bX3) 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 plaintiffs burden of establishing liability under this
     title.
   (c) INDEMNIFICATION.—
       (V 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—
      (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(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. 11) 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 10k. 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) LIMITATIONS.—
      (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
      CD) 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 (eX2XB) 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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      (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(dXD  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
and 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.—
      (DIN 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-
    lotions, 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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oua 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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          (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 PASTIES.—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.
  (g) 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 Super-fund 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 shall  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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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 $04 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

      (ID 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 (bXl), 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 the hazardous substance or pollutant
    or contaminant is transferred is  not releasing any  hazardous
    waste, or constituent thereof, into the grounawater  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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ments 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.—<1) 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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                               89

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) REVIEWABILITY.—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 ana  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 (eX2XB) 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.
        (W 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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                           93

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 106 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  snail 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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                           94

    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 been submitted within SO 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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  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),  (f), (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  LLABIUTY.-^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  30 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 (bXl) 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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                               101

     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 3Ml(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 3001(bX3XAXi) 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(bX3XAXV 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
 104d) (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
lands 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

"SuBCHAPTZR A. Tax on petroleum.
"SuBCHAPTER B. Tax on certain chemicala.

           "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  fof 0.79 cent a barrel]  at the rate specified in sub-
    section (c} is nereby 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.—
      "(1) IN GENERAL.—Except as provided in paragraph (2), the
    rate of the taxes imposed by  this section is 8.2 cents a barrel.
      "(2) IMPORTED PETROLEUM PRODUCTS.—The rate of the tax
    imposed by subsection (aX2) shall be 11 7 cents a barrel
  C"(c)l "(d) PERSONS LIABLE FOR TAX.—
      'Hi) CRUDE OIL RECEIVED  AT REFINERY.—The tax imposed by
    subsection  (aXl) 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
    w,50o,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 S6,650,OOO,OOO.—
          "(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 $6,550,000,000 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 OP 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 ANY 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 removed  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)]  "(d) 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 4611.

       "Subchapter B—Tax on Certain Chemicals

"Sec. 4661. Imposition of tax.
"Sec. 4662. Definition* 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 OP 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 %.87\
   (c) TERMINATION.—No tax  shall be imposed under this section
during any period during which no tax is imposed  under section
4611(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  466 l(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 fuel * (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—
              ["(i) used in a qualified use  by the manufacturer,
           producer, or importer,
              ["(ii) sold for use  by the  purchaser in a qualified
           use, or
              C"(iii) sold for  resale by the purchaser to a  second
           purchaser for use by such second purchaser in a quali-
           fied use.
         C"(C) QUALIFIED uss.—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—
              'W 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 FERTILIZES 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 bSSKa),  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 sate 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 Thia amendment was made by section 1019(aX3) of Public Law 98-369, the Deficit Reduction
Act of 1984.
  'This amendment was made by section 1019Cbx2xA) of Public Law 98-369, the Deficit Reduc-
tion Act of 1984.
  « Added by section 1019rt>Xl> of Public Law 98-369. the Deficit Reduction Act.

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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 4661(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  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 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.
      "(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 orceases to be part of any smelting,
        refining, or other extraction process.8
      "(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 1019UX1) 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—
             "(Z> 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 sucn 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 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

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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)  USE BY MANUFACTURER, ETC., CONSIDERED SALE.—Clf] 8
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. 3
  "(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
  • This amendment wu made by section lOlftc) 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—
             "(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.
         "(a)  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 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,"1
   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
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                              112

    same manner as if it were an overpayment of tax imposed by
    this section.
      *"(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 (bX5), 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
    sarne 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
              "(iiXI) 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—
 * Paragraph (3) is 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 (aX3) 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

CSEC. 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,
          [(C) all moneys  recovered or collected under section
        311(bX6XB) of the Clean Water Act,
          C(D) penalties assessed under title I of this Act, and
          f(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 repeal* thia subtitle.
  "This amendment wa» made by section 204 of Public Law 99-499.
                                             ••v

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                             114

          C(A) 1981, $44,000,000,
           |(B) 1982, $44,000,000,
           (C) 1983, $44,000,000,
           (D) 1984, $44,000,000, and
          C(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—
          F(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—
5(A) response costs,
           (B) claims  asserted and compensable  but unsatisfied
           er section 311 of the Clean Water Act,
          [(C) claims for injury to, or destruction or loss of, natu-
        ral resources, and
          T(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) (1XA) and (2) shall be reserved—-
          CCA) 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(cX2XC).
  KC) 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.11
[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 PAHX—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 204flj) 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 OP 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 (IXA) of sec-
        tion 221(b) of this Act for the following 12 months, and
          C(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 maximum 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 11 Ha) (1), (2), or

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                             116

        (4) shall not exceed one-third of the amount of the esti-
        mate made under subparagraph (A).
          C(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.
      C(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. 3

 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. (aXl) 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;
      (Q 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;
      
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                              118

    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.
  (cXl) 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(0 (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 Super-fund 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;
       (O 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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                              121

  (f) The President, acting through the Administrator of the Envi-
ronmental Protection Agency, the Secretary of Transportation, the
Administrator of the Occupational Safety and Health 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
  >* Repealed by section 501(b) of P.L. 99-499.
   65-705 0-87-5

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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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                        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  Act]  within 30
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—
      (1) redesignating subsection (h) as subsection (i);
      (2) by inserting "and subsection (h)" after "subsection (g)" in
    subsection (1X2) 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 Act.

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                              126

                         SEPARABILITY

  Sic. 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 the 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 399. 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 by 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
    (aXl) 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 subpani'
        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 HO. 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 (aHD.—Any action under sub-
    section (aXl) shall  be brought in the district court for the  dis-
    trict in which the alleged violation occurred.
      (2) ACTIONS  UNDER SUBSECTION 
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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 (aX2) 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.—
      (V 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 Feaeral 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 501(cX3) 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)  Tne 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 (he 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  earned out and 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 how 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 such  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
Secretary 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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  (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 ana 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 wnich 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 (2) 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;
          (a) 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. STA TE 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.
      (z) 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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                              139

 (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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                              140

      (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  taw, 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 wno 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. 40S. 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 seq.).
  (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)  UNCONSOLIDATED 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
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                              144

      (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 Nor 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 finarpermit 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 OP LEAD POISONING IN CHILDREN.-^!) 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;
      (O 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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                          .   145

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 residents 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.
        (O  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  minimi?* 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 OP 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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      (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 HANTORD 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 subparagraph 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 OP 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
Lost 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 List,
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 oy 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 DATS.—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) OFFSITE 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 or 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 900K2XB) 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
    tnird 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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   $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(cXl) 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.—
  65-705 0-87-6

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  "(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,  expend!-

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    tures from the Leaking Underground Storage 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 OF COSTS.—
       "(A) IN GENERAL.—Whenever coats 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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         "(i)  No  TRANSFERS OP  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.                                     	
      "CD) 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
    coats of the State's actions under the cooperative  agree-
    ment.
      "(B)  COST SHARE.—Following the effective date of the
    regulations under subsection (c) of this section,  the State
    shall 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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 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 tcrabate  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  (dXSXA) of this section
 (or a lesser amount if such amount is applicable  to such facili-
 ty  as a result of  subsection (dX5XB) 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 taking 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 9005(a) 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)".
          (O Insert ", or (7)" immediately after "(6)".
  0) 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, and 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 or SECTION 120 OF CERCLA.—Activities of the
    program described in subsection (bXl) 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  oro.—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.                      fi
          "(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) STATE FEES AND CHARGES.—The Secretary shall pay fees
    and  charges 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 3005
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                             165

    through the office of technology demonstration of the Environ-
    mental Protection Agency.

"§ 2703. Environmental restoration transfer account
  "(a) ESTABLISHMENT OF TRANSFER ACCOUNT.—
      "(1) ESTABLISHMENT.—There is hereby established in the De-
    partment of Defense an account to be known as the 'Defense
    Environmental 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.

M§ 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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                             166

          "(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  under
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,
    health advisories on hazardous
    shall be prepared on each hazar lous substance—
          "(A) for which no advisor
in a timely manner,  prepare
substances. Such an advisory
exists;
          "(B) which is 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 an 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 CEHCLA 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-ToKnow Act of 1986".
  (b) TABLE OF 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-
 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-
 §ency response  commission.  The  Governor may designate as the
 tate 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 nave 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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                              171

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 OF 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-
                          a thresh
    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.
  (Q If the Administrator fails to publish an interim final reg-
ulation  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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                              172

    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 (bXD 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. 303. 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 OP INFORMATION.—For each facility subject to the
requirements of this  subtitle:
      (1) Within 30 days after establishment of a local 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 shall  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
          (Q 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-
                                  la
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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                             176

        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-
    grama, 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 OP 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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                             177

   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 groundwater 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 of 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 effectively 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 OF 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 OF 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 (aXD, 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 1910.12
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                             180

  (2) The inventory form containing tier I information (as described
in subsection (dXD) 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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    (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 U 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 n 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 have 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,
               (HI) 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 described 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 (dX2).  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-
    pressed  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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                              189

    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 Ob), 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 311(a).
SEC. 322. TRADE SECRETS.
  (a) AUTHORITY To WITHHOLD INFORMATION.—

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                             190

      (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) LIMITATTON.—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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                              191

      (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
CbX4), 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.
          (O 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 adopted 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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                                   i

  (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—
      (1) a 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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                              194

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 n 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  FOR 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.—
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                             196

    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)  CIVIL 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 ah 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 io_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(dXl).
              (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 surra.—

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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 31 He).
              (iy) 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 OP 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
    13,500,000,000.—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 Ob) 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

  (b) INCREASE IN TAX.—Section 4611 of such Code is amended by
redesignating subsections (c) and  (d)  as subsections (d) and (e), re?
speetively, 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 cents 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  On, 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 (b)
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 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."
   (e) EXEMPTION FOR ANIMAL FEED SUBSTANCES.—

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                             207

      (1) IN GENERAL.—Subsection (b) 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 OP.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 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
             "(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 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  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 (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."
  (f) CERTAIN EXCHANGES BY TAXPAYERS Nor 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 prescribe, 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,
        au 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.
        (C) XYLENE TO INCLUDE  ISOMEBS.—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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                               212
      "(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 OF 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
Feirochromium 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 LIST 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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                             213

        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 hew item:
           "SuBCHAFTER 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. S9A. 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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                           214

    "(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 l(e), 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 59A (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  OF  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 6655(f) 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 VTi. 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  OF  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 Superfund 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 11 Ha) of
           CERCLA as in effect on the date of the  enactment of
           the Superfund  Amendments and  Reauthorization Act
           of 1986,
             "(ii) section 11 He)  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., or 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 300&Xa) 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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    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 H-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 1986.— .
              (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, ia 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 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 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
               (ID 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 (1) —
         "(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.-<)n 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 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 reve-
       nues over amounts payable by reason  of section 9508(cX2)
       (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-
  "(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
 Tleaking 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 (2KB)
 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 CE_NT
        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
      "(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)".
          (O Paragraph  (1) of section 6427(0 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 OF  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
    the 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 4041(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 6416fb) 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 404 l(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.—
      "fl> 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 404 l(d) and 4081 (to the
           extent attributable to the Leaking Underground Stor-
           age  Tank Trust Fund  financing rate under  section
           4081).
          "(6) 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-
    thohzation 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 for 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."
                                                                             -1

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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-l 5
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
                                                                                          I
                                        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 FOIA Bequests

Gene A. Lucero, Director  (S?$VJL A.
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 provided for ewe—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  23, 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 EPA's decision to withhold the identities of potentially
responsible parties as provided by FOIA exemptions under 5
U.S.C. SS552
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                              -2-

     1. For Exemption 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 site.

     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 aay 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 EPA1 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
                site.
     6.  Us* 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 Cary Watfcins (FTS 382-2032).


                             G-3

-------
             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                         WASHINGTON, D.C. 20460
                             MAR
MEMORANDUM
SUBJECT:
FROM:
TO:
                                                            in
Participation of Potentially Responsible  Partie<  ...
levelopment of Remedial Investigations  and  Feasioility
? H-t»x i Ai'L"-^. 11«j-t a F- r* F or* r A
                        CERCLA
          Lee M. Thomas, Assistant Administrator
             ice of Solid-Waste and Emergency 'Response
              ^7"   (*)—  ~lJL^-
             •tney\. Price, Assistant Administrator
          Office of Enforcement and Compliance  Monitoring

          Regional Administrators, Regions  I-x
r.
     Introduction
     This memorandum sets forth the policy  and  procedures
governing participation of poten'tially  responsiole  parties  (PR?s)
in development of remedial investigations  (RI)  and  feasibility
studies (F3) under the Comprehensive  Environmental  Response,
Compensation, and Liability Act (CERCLA).  ^   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 Agency is currently developing  a  comprehensive policy
  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 .earlier policy, the  Agency  negotiated  with  potentially
 responsible parties  (PRPs) for  individual  phases  of  site  response
 (i.e., RI/FS, design, construction).   PRPs  could  negotiate to
 conduct  the RI/FS without discussing  the  remedial d33ign  and
 construction.  Fund-financed  RI/FS  were  generally not  performed
 until  the Agency concluded that negotiations  with private parties
 were unsuccessful.   Negotiations concerning  liter phases  of
 remedial action would oocur after the  RI/FS  was  completed.

     This approach was designed to  secure  cleanup oy PRPs instead
 of  Superfund financed cleanup,  if privately  financed cleanup
 could  be accomplished in a timely manner.   This  policy was
 initially expressed  by EPA in the "Guidelines for Using the
 Imminent Hazarl, Enforcement  and Emergency  Response  Authorities
 of  Superfund and Other Statutes" issued  pursuant  to  §106(c)  of
 CERCLA at 47 Fed. Reg. 20664  (May 13,  1932).

     Th-3 Agency identified several  drawbacks  to  the  approach
 of  negotiating for individual phases  of  the  cleanup:

     First, the negotiations  for the  RI/FS  were  often  unsatisfactory
 because  of  frequent  disagreements on  the  nature  and  scope of tne
 Rl/t-'S.   In  particular, protracted negotiations occurreu over the
 details  of  investigating the  hazard,  both  on  ar.d  off-site.
.Disagreements also arose over sampling locations  and frequency,
 well placement, analytical methods, quality  control, and  l^vel
 of  detection.  Substantial delays occurred even  when agro^mont  w^
 eventually  reached.

     Second, some RI/FS conducted by  potentially  responsiole
 parties  were inadequate and of  little use  to  EPA in  determining
 the extant  of the remedy  for  a  site.   Because the Agency  had not
 published guidance on conducting RI/FS,  the  only way to avoid
 therfo  problems was for the Agency to  provide  extensive oversignt
 and review  of tne RI/FS under development.   In certain instances,
 tne PRPs revised  the completed  RI/FS  after further discussions
 with  the Agency, or  the Agency  redid  the  RI/FS using CERCLA
 funds.  These inadequacies and  revisions  demanded resources  fron
 tJ*.» Fund and delayed site  response.

      Third,  the Agency's willingness  to  negotiate with potentially
 responsible parties  for the  RI/FS for any or all  sites affected
 the pursuit of  the Agen-cy's  priorities.   Occasionally, resources
 wire  diverted  from on-going  litigation,  or the initiation oc
 action at sites where prompt  response was desirable.  Priorities
 for the  use of  the Agency's  enforcement  resources were e-stablished
 on a  "de facto" basis by  PRPs,  based  upon their  willingness  to
 negotiate at particular sites,  rather than on the Agency's assessment
 of the sites which needed  to  be addressed in a timely fasnion
 and offersd the bost prospects  for  privately-financed response.
                                 G-6

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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  established a
policy that precluded potentially  responsible parties  from conduct in-.
the RI/F3, unless they were  also willing  to commit  to  conducting
the remedial action.

     The  Agency has  also  identic iod drawoacks 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/Fo  and  to
assume " responsibi11ty tor conducting  cleanup, because  their views
were not  reflected in the Agency-financed RZ/FS.  This  policy
also increased demands on the  Fun.i, and  ran contrary to the
Agency's  preference  for timely and  effective private-party response.

     In light of these drawoacks,  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  with
new Agency procedures and guidance.   The  new approacn  will netter
enable the Agency to target  its  enforcement priorities, reduce
tae possibility of unsuccessful  or  protracted negotiations wit'i
?R?s,  and enhance the quality  of private-party  .-U/FS.

III. Situations where private  parties  may conduct RI/FS

     The  Agency will identify  sites targeted for  RI/FS  devo Lopn-snt ,
"and give  potentially responsible parties  an opportunity to conduct
tne RI/FS.  The Remedial  Accomplishments  Plan  (RAP)  developed by
tne Agency identifies candidate  sites  for enforcement  or  Fund-f ir,a-.c
response, and allocates the  resources  necessary to  undertake
these  activities.  The Remedial  Accomplishments Plan lists all
sites  for whicn RI/FS will be  developed.

     Approximately 95 sites  from the  National Priorities  List
have been identified as targets  for development of  .-U/F3  in r't1
1984,  and about 115  will  be  identified for  FY  1985.   The  Ager.jy
has allocated CERCLA funds for RI/FS  for each of  those  sites.
CP^ will  make available a list of  the  sites on  the  Remedial
Accomplishments Plan, and the  scheduled  dates  tor obligation  or
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 for  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 tecnnical  complexity and  the  number o£  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  the
RI/FS, the. Agency will identify the conditions under  vhich  tney
may do so.  To assure that privately-f unaed RI/FS are 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 this process, tne Agency  will
          make the names of potentially responsible  parties
          available on request.  { Soe guidance t rom  Gene  A.  Lucero
          and Kirk Sniff on Release of Names of Potentially
          Responsible Parties in Response to r'OIA Requests  published
          January 26, 1984).  A single ?Rt>, or an organized 'ir.v:p
          of ?RPs, may assume respons i n 1 1 i ty for actual  development
          of the RI/L-'S.

       2. PRPs must agree to follow the scope of work  for  the
          RI/FS developed by the Agency.  Tho A-J-JMC-/ will  not
          engage in ier.gtny negotiations  ov-.-r "his  n^ue.

       3. PRPs must demonstrate to the Agency that  they are aole
          to follow the technical procedures described  in  Remed ial
          Invest igat ion and Feas iDi 1 1 ty S tudy j-iiJance  Tinjais
          currently unaer development. -

      If  these conditions are met, tho Ageno/ will devote  the
      c-jo necessary to assure the so 1 1 s t vc-.-ir/ -:-.-vu lopment  o:
      l/rS by private parties.  The conditions governing  private-
party conduct o£ the RI/FS should be  formalized as Administrative
Orders (either unilateral or on consent)  or Consent  Decrees
wherever possible. 3  The Agency is Developing a model  "generic"
consent  order for privately-conducted RI/FS so that  consistenc
an    ^moiete agraements can be expedi t lous ly negotiated.
 .
2.  The Feasibility Study guidance and the Remedial Investigat ion
   guidance are scheduled for completion in tne summer oc I^o4.


3.  EPA may issue orders under section 106 when it d-rterminc-s that
   tnere may be an imminent and substantial endangerment to public
   nealth or welfare or the environment.  The Regions should
   review and if necessary update the information gathered to
   justify the listing of a site on the National Priorities List.
   This information will oe valuable in developing the endan^ermeni
   assessment needed to justify issuance of the order.
                             G-8

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                               -5-
     If, in the Agency's judgment;, the potentially  rc-sponsiblo
parties da not meet these criteria (that  is,  they  are  i yt  aole
to properly conduct the RI/FS), the Agency will  not  commit  rosou r re '5
to review the private-party RI/FS.  instead,  the Agency  will
perform the work itself and seek  to recover  the  costs  oc  the
PI/FS.  PRPs will be given the opportunity to Discuss  imp lemer. 1at ;on
of the selected remedy at a later date.

     The Agency normally allocates th.i equivalent of  about  l.L
work-years for start-up, management, and  selection  jc  r-^e-jy  .;r
each Fund-financed RI/FS developed by a government  contractor.
Tnese resources will be redirected to oversee and  review  tne
privately-conducted RI/FS.  It is the Agency's view  chat
responsiole parties are liable for coses  of  oversignt  of  RI/FS
development.  A commitment to reimburse the  Agency  for overs.jht
costs should be negotiated in advance.

     The Agency will review the completed work product,  assess
the various alternatives under consideration, an-i choose  the
remedial alternative that best meets all  applicaole  requ i r ?ment -->
of CERCLA.  Development of private-party  RI/FS will  bo Sv-Oject
co c?A community relations requirements.  •*

     The Agency believes that this approach  will ennance  •ne
prospects for private-party implementation of the  remedy  2nd
a'.so provide a mechanism 'to clean up additional  sicc-3  in  cn.e
f.:-jre.  As • potent ially responsiole parcies  become  no re  famil.^.r
•vi ch conducting RI/F.S under the Remed lal  Investigation ana
Feasib 111 ty Study guidances, .ind  Aguncy personnel  live Lop  ^.ori
experience in overseeing ana evaluating them, we anticipate  -.nac
it will take less than a full Agency workyear to assure  the
completion of a technically sound RI/t"S.  As  a result  :f  f\is
experience, EPA will be able to oversee additional  pr i '/a te 1} - f i n ance
RI/PSs with a given level of resources and,  consequent!/,  iniciato
cne response process by private parties at more  \'?L  sites.

Iv. Applicaci1ity of Policy

     Tnis policy is prospective.  PRPs vili  be allowed to  contact
RI/'FS for targeted sites on the oasis of  these criteria  wh~n  tae
Remed ial Investigation and Feasibility Study  technical manuals
an 1 any other necessary techn ica L nTFTuals are final.   We  anticipate
th-^t these documents will oe completed in the summer  of  1934.

     This polircy 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 arc set tortn in  Community Relations  in  Super:unc:
   A Handbook (Interim Version,)  Septemcer 1933.
                               G-9

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                               -6-


     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 resources  to
oversee and evaluate RI/FS for sites that have not oeen so
designated.  While potentially responsible parties are free to
conduct their own RI/FS for other sites which nave not been
listed as priorities, the Agency do'es not have sufficient resources
to provide assistance or review the RI/FS during their levelocnent.

     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, the Agency cannot
review private-party RI/FS for non-targeted sites to provide
assurances tnat the remedy selected by potentially respondtole
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 also develop tfl/FS if they
commit to follow workplans for RI/FS that have been prepared  oy
che Agency contractors under the supervision of tne Agency.   The
Agency will not negotiate the content of these wor'-:p lar.s.

     Implementation of this interim policy is ^t the discretion  :f
the Regions.  Regions may allow ?R?s to conduct RI/FS under
workplans developed by Agency contractors if trie KI/FS can :~^
conducted without undue disruption to schedules for remedial  r^sp.:.-.
in light of existing commitments Cjr activities to r;e j-. Je rta< .-n
un'-er the Fund.  Regions should complete any negotiations cor.cer-.:.:-,
this interim policy before the -last month of tne fiscal year,  co
assure that these negotiations will not interfere with ase oc
Funa resources.  Where the State is managing the development  Df
the RI/E-'S, this interim policy may be applied at tne discretion
of the State.

     The Agency will sanction private-party RI/FS fjc sites cnat
are not identified on the Remedial Accompi isnm-encs Plan in two
other situations.

     First, private parties-may perform the RI/FS if tney also
agree to design and  implement the remeuy selected by cne Agency
for the site.  The Agency will allow private party development
of the RI/FS because the resources that would have been deaicat .• :
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  scooe  of  fie
remedial investigation has been comprehensively definei oy  the
Federal government.  The explicit requirements  developed  oy  the
Federal government—coupled with the public  innerest  to move
quickly on recently discovered dioxin sites—warrant  this approach.

VI.  Arrangements for Notice to PRP3

     PRPs will be notified of the opportunity to perform  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 available.
It vill be accompanied by a statement that the  Agency plans  to
conduct RI/FS for the sites.  Any potentially rosponsiole pariy
fiat vants to undertake the RI/FS -can voluntarily come forward
and  contact the Agency, before the scheduled date to  obligate
fjnds for RI/FS development.

     Second, prior to the scheduled start of 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 pecere
the  scheduled date for ooligation of Funds for  tne  RI/FS^TR?S
(if  multiple generators are involved) snoulj therefore nave
sufficient time to organize themselves  and initiate prelimir^ry
contacts and discussions with Agency personnel.  This will  also
ivoia delay in beginning a Fund-f inanced Ki.'l-'S  snould it  oeco-ie
necessary.

     The notice letters will inform the potentially respons 10 l->
parties that.:

        1. Fund-financed PI/FS actions  aro planned;

        2. The results of the studies will be ;s«d  to soi?ct
           a remedy f:?r the site;

        3. PRPs can meet with Agency personnel  to discuss cn.^.r
           participation in tne -U/FS;

        4. PRPs may be liable for the costs  of  the  RI/FS  per: jrr:->.:
           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 conciti;
           outlined in section III of this policy.
G-ll
                                   ns

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                               -8-
     The Agency will develop revised Notice Letter guidance  in
the near future that will provide additional detail on  these
requirements.


VII. Regional  Role Ln RI/FS Development by PRPs

     Regional  review of privatc-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  Activities
they will undertake at the site, based on the guidance  ind  the
scope of work  daveloped by the Agency.  Tho Regions must  arrrinrje
to periodically review the work plans and work performed  as par".
of the RI/FS.   The Reg ions _mjjst assure that PRPs follow proper
chain of custody procedures in testing and sampling,  and  that
PRPs keep adequate records to enable the  jovernment  to  u.se  t.-ese
records as evidence in an enforcement case.  In addition, ^mp lo v-i^3
of contractors or others who do the work must cooperate witn  -inj
be maae available to the -jovernment in tne preparation  dO'i  f.rial       ^
of any subsequent enforcement case.                                    i
                                                                       •7
     The Agency will review the completed work product  -»nd  jriccse
a renedial alternative that meets all applicable re ;u i r^men-. s  of
CERCLA, and all implementing regulations, policies  ini  jui:inc-?.
In addition, the Agency retains the right to reject  PRP RI/F3
and sue PRPs for cost of developing its own Fund-financed Ri'Fo,
if tne RI/FS is inadequate.  As no too e=»rlior, tiio  igro^.nen t  to
conduct a private-party RI/FS should be incorporated  into an
a^-tin istrat ive order or consent decree.   Section 107  of LK-.CLA
^utnorizes the imposition of treble damages for failure to  cor-.pi/
witn an Administrative order.  The Agency will develop  2  mod^l
orc^r providing additional detail re-jarding EPA involvement  in
private party RI/FS development.


VIII.  Private-party Participation in Agency-Financea RI/FS

     Where potentially rosponsibie parties do not  actually  doveiop
tr.y P.I/F5, the Agency will allow private-oarty involvement  in
Fund-financed RI/FS, if such participation can occur  without
•j-.due delay, expense, or  interference with Agency  RI/FS develj^ment
Private partie"s may possess technical expertise or  knowledge
uuout a site which would be useful in developing a  sound  RI/FS.
Involvement by PRPs  in the development of a Fund-financed Rl/tS
may also expedita site cleanup by identifying and  satisfactorily
resolving differences between the Agency  and privace  parties
that might otherwise be the subject of litigation.
                                G-12

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                              -9-


     Potentialiy responsible parties may be allowed to:

      1. Review the contractor' s technical wor'< plan;

      2. Have access to the site (it" Legally feasible) to ocserve
         well installation and the collection of samples, and  to
         split samples where appropriate;

      3. Have access to raw data and to draft reports;

      4. Have the option to comment on each major phase of trie  RI/
         during the conduct of the investigation.

     The final decision whether to permit potentially responsible
parties to participate in the Fund- f inanced RI/FS (as .veil as
the scope of any participation)  rests with the Regions.  This
decision 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  interference
with or delay in completion of the RI/FS, and other factors
that the Regions determine are relevant.  The Region  ma/ t3riinate
PRP participation in RI/FS development if unnecessary expenses
or delays occur.

     Certain aspects of this policy are not applicable •.-'.mediately
and supplementary guidance will be published.  [f you hiv-.- ^v
questions or comments concerning tnis policy, or proolons t,,at
need to be. addressed in further guidance to implement this :ol.;y,
•please contact Gene A. Lucero ( 332-4>31 4) , or Jonn Crosr,  in  ;. s
stare ( FTS 332-4829) .

cc :        Regional Counsel
           Regions I-X

           Directors, Waste Management Division
           Region I, V

           Director, Office of Emergency and Remedial Response
           Region II

           Director, Hazardous Waste Management Division
           Region III

           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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     3 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
    /                WASHINGTON, D.C. 20460
                       JUN 13 1984
                                                        Qil.Cc 0(
                                                      iN«oa/:;vikv
                                                     COMPLIANT; WG
MEMORANDUM
SUBJECT:
FROM:
TO:
Liability of Corporate Shareholders and Successor
Corporations For Abandoned Sites Under the Compre-
hensive Environmental Response, Compensation, and
Liability Act (CERCLA)               /'
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
                           G-15

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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.
TTie 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(aH2) 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
                              G-16

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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 i07(a)(4)J.

     Notwithstanding CERCLA's statutory language, courts
normally seek to preserve the corporate form and thus maintain
the principle of limited liability for its shareholders. V
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
V  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 1201r 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." ^/  Thusr 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 law. 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
    curiam, 490 F.2d -916 (5th Cir. 1974).

V  id.       -

£/  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].1"  (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. £/

     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. 7/  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.

               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
    (1933), 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."  1°/  For example,  the  corporate veil  has  been pierced
 in instances where there  had  been  a failure  to maintain adequate
 Corporate  records, or  where corporate  finances had not been
 kept  separate from personal accounts.  H/

      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, ^/ or where the corporate  form has been  employed
 to misrepresent or defraud  a  creditor. H/
 £/  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).

10/  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).

\1/  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).

     See FMC Fin.  Corp.  v.  Murphree, 632 F.2d 413,  423 (5th
     CTr.  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 factr unique
to a given set of circumstances.  However, the substantive
law applicable to a case may also have great importance.  For
^xample, in applying state corporation law, state courts have
been generally reluctant to pierce the corporate veil. 15/
Federal courts, however, in applying federal standards ,~n~ave
shown more willingness to disregard the corporate entity and
hold individuals liable for corporate actions. 16/

     In many instances federal decisions do draw upon state
law and state interpretations of common law for guidance.
However, federal courts that are involved with federal
question litigation are not bound by state substantive law
or rulings. ££/  In such cases,  either federal common law
 5/  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.
     458 (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).

17/  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.
                            G-21

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                           -8-
or specific statutory directives may determine whether or not
to pierce the corporate veil.
     See Anderson v. Abbot, 321 U.S.. 349, 642 S.Ct. 531, 88
     L.Ed. 793 (1944); Town of Brookline 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 weignt 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-82-840, slip op.
     (S.D. Ohio, Oct. 11, 1983).  In Chem-Dyne, the court stated
     that the purpose of CERCLA was to ensure the development
     of a uniform rule of law, and the court pointed out the
     dangers of a variable standard on hazardous waste disposal
     practices that are clearly interstate.   (Slip op. at
     11-13.)  See also, Ohio v. Georgeoff, 562 F. Supp. 1300,
                              G-22

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                              -9-
     The general rule applied by federal courts to cases in-
volving federal statutes is that "a corporate entity may be
disregarded in the interests of public convenience, fairness
and equity." ^O/  in applying this rule, "federal courts
Vill look closely at the purpose of the federal statute to
determine whether that statute places importance on the
corporate form." ££/ Furthermore, where a statute contains
specific directives on when the corporate entity may be
disregarded and indiviauals held liable for the acts or debts
of a valid corporation, courts must defer to the congressional
mandate. ££/

     Thus, even under general principles of corporation law,
courts may consider the language of statute in determining
whether to impose liability on corporate shareholders.
Therefore, a court may use the statutory language of CERCLA
either as a rationale for piercing a corporate veil (when
corporation law is applied) or as an independent statutory
basis for imposing liability (notwithstanding the general
principles of corporation law). 23/
19 (continued)/

     1312 (N.D. Ohio, 1983); 126 Cong. Rec.  H. 11,787 (Dec.
     3, 1983).

     The Chem-Dyne court stated that "the improper disposal
     or release of hazardous substances is an enormous and
     complex problem of national magnitude involving uniquely
     federal interests." (Slip op. at 11.)  The court further
     noted that "a driving force toward the development of
     CERCLA was the recognition that a response to this
     pervasive condition at the State level was generally
     inadequate: and that the United States has a unique
     federal financial interest in the trust fund that is
     funded by general and excise taxes."  (Slip op. at 11,
     citing, 5 U.S. Code Cong. & Ad. News at 6,142.) See
     also, 126 Cong. Rec. at H. 11,801.

20/  Capital Telephone Company, Inc. v. F.C.C. , 498 F.2d 734,
    . 738 (D.C. Cir. 1974).

     Town of Brook line v. Gorsuch, 667 F.2d 215, 221 (1981).

££/  Anderson v. Abbot, 321 U.S. 349, 365, 64 S.Ct. 531,
     88 L.Ed 793 (1944) .

23/  See discussion, supra , note 4.
                             G-23

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                              -10-
Conclusion

     The Agency should rely upon the statutory language of the
Act as the basis for imposing liability on any person who
controlled or directed the activities of a hazardous waste
facility immediately prior to abandonment, or on any person
Who is a generator or transporter, notwithstanding the fact
that that individual is a shareholder.  Additionally, and
alternatively, the Agency may rely on the general principles
of corporation law to pierce the corporate veil by applying
the current federal standard of public convenience, fairness,
and equity.  However, when seeking to pierce the corporate
veil, the Agency should be prepared to apply the traditional
dual test previously discussed in order to provide additional
support for extending liability to corporate shareholders.
II.  THE LIABILITY OF SUCCESSOR CORPORATIONS UNDER CERCLA
Background

     Section 107(a)(2) of CERCLA extends liability for response
costs to "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."  Situations may arise, however,
where a corporation, which previously had owned or operated a
hazardous waste facility, now transfers corporate .ownership to
another corporation.  In such cases, it is important to determine
whether the liability of the predecessor corporation's action
regarding the disposal of hazardous waste is also transferred
to the successor corporation. 24/

Issue

     What is the extent of liability for successor corporations
under CERCLA?
24/  The discussion that follows is equally applicable to
     successor corporations of generators and transporters
     associated with hazardous substances released from CERCLA
     facility.
                            G-24

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                              -11-
SummarY

     When corporate ownership is transferred from one cor-
poration to another, the successor corporation is liable for
the acts of its predecessor if the new corporation acquired
Ownership by merger or consolidation.  If, however, the
Acquisition was through the sale or transfer of assets, the
successor corporation is not liable unless:

        a)  The purchasing corporation expressly or
            impliedly agrees to assume such obligations;

        b)  The transaction amounts to a "de facto" consoli-
            dation or merger;

        c)  The purchasing corporation is merely a continu-
            ation of the selling corporation; or

        d)  The transaction was fraudulently entered into
            in order to escape liability.

     Notwithstanding the above criteria, a successor corpora-
tion may be held liable for the acts of the predecessor
corporation if the new corporation continues substantially
the same business operations as the selling corporation.

Discussion

     The liability of a successor corporation, according to
traditional corporation law, is dependent on the structure of
the corporate acquistion. 2V  Corporate ownership may be
transferred in one of three ways:  1) through the sale of stock
to another corporation; 2) by a merger or consolidation with
another corporation; or 3) by the sale of its assets to another
corporation. 26/  Where a corporation is acquired through the
"purchase of aTl of its outstanding stock, the corporate
entity remains intact and retains its liabilities, despite
25/  See N.J. Transp. Dep't v. PSC Resources, Inc., 175 N.J.
     Super. 447, 419 A.2<3 1151 (Super. Ct. Law Div. 1980).

26/  Note,  Torts - Product Liability - Successor Corporation
     Strictly Liable for Defective Products Manufactured by.
     the Predecessor Corporation, 27 Villanova L.R. 411, 412
     (1980) (citations omitted) [hereinafter cited as Note,
     Torts  - Product Liability].
                           G-25

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                              -12-


the change of ownership." 27/  By the same token, a purchasing
corporation retains liability for claims against the predecessor
company if the transaction is in the form of a merger or con-
solidation. 28y  where, however, the acquisition is in the form
of a sale or other transferance of all of a corporation's assets
to a successor corporation, the latter is not liable for the
debts and liabilities of the predecessor corporation. 29/

     There are four exceptions to this general rule of non-
liability in asset acquisitions.  A successor corporation
is liable for the actions of its predecessor corporation if
one of the following is shown:

        1)  The purchaser expressly or impliedly
            agrees to assume such obligations;

        2)  The transaction amounts to a "de facto"
            consolidation or merger;

        3)  The purchasing corporation is merely a
            continuation of the selling corpor-
            ation; or

        4)  The transaction is entered into fraudulently
            in order to escape liability. 30/

     The application of the traditional corporate law approach
to successor liability has in many instances led to particularly
     N.J. Transp. Dep't v.  PSC Resources, Inc. ,  175 N.J.
     Super. 447, 419 A.2d 1157 (Super. Ct. Law Div. 1980).

     Id.  A merger occurs when one of the combining corpor-
     ations continues to exist; a consolidation  exists when
     all of the combining corporations are dissolved and an
     entirely new corporation is formed.
29/
See N.J. Transpj
Super. 447, 419
citing, Jackson
488, 454 (Super,
N.J. 3JO (1979),
•
A
V
•
»
Dep
.2d
. N
Ct.
't V.
PSC Resources, Inc.,
1151 (Super.
.J. Manu. Ins.
App.
Div. 197
Ct.
Co
9),
Law
. , 16
cert

Div.
6 N.J
. den

175 N
1980)
. Sup
ied ,

e
8
J.
r .
1
30/  Id., Note, Torts - Product Liability, supra note, 26 at
     413 n. 15-18.
                              G-26

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                              -13-
harsh and unjust results, especially with respect to product
liability cases. 31/  Therefore, in an effort to provide an
adequate remedy and to protect injured consumers, courts
have broadened the exemptions to the general rule by either
modifying or recasting the "de facto" and "mere continuation"
exemptions to include an element .of public policy. 32/

     More recently, however, the general rule has been aban-
doned altogether by several jurisdictions and, in essence, a
new theory for establishing successor liability has evolved
based upon the similarity of business operations. £p_/  The
new approach has been cast by one court in the following way:

           " (W]here ... the successor corporation acquires
           all or substantially all of the assets of the
           predecessor corporation for crash and continues
2£/  See McKee v. Harris-Seybold Co., 109 N.J. Super. 555,
     264 A.2d 98 (Super. Ct. Law Div. 1970), aff 'd per curiam,
     118 N.J. Super. 480, 288 A.2d 585 (Super. Ct. App. Div.
     1972); Kloberdanz v. Joy Mfg. Co.,  288 F.Supp. 817 (D.
     Colo. 1968).

32/  see N.J. Transp. Dep't v.  PSC Resources, Inc., 175 N.J.
     Super. 447, 419 A.2d 1151 (Super. Ct. Law Div. 1980);
     See also, Knapp v. North Am. Rockwell Corp.,   506 F.2d
     361 (3d Cir. 1974), cert,  denied, 421 U.S. 965 (1975);
     Cyr v. B. Of fen & Co., 501 F.2d 1145 (1st Cir. 1975);
     Turner v. Bituminous Gas Co., 397 Mich. 406,   244 N.W.2d
     873 (1976).

     The theory has also been referred to as the "product-
     line" approach.  In adopting this new approach to
     successor liability, some courts have abandoned the
     traditional rule of non-liability in asset acquisitions.
     See e.g., Ray v. Alad Corp., 19 Cal. 3d 22, 560 P.2d
     3, 136 .Cal. Rptr. 574 (1977).  Other courts have con-
     sidered the new approach as an exemption to the general
     rule.  See e.g., Daweko v. Jorgensen Steel Co., 290 Pa.
     Super. Ct. 15, 434 A.2d 106 (1981); Note, Torts - Product
     Liability, supra note, 26 at 418 n. 38.  And, a few
     jurisdictions have rejected the new approach.  See
     Travis v. Harris Corp., 565 F.2d 443 (7th Cir. 1977);
     Tucker v. Paxson Mach. Co., 645 F.2d 620 (8th Cir. 1981).
                            G-27

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                              -14-


           essentially the same manufacturing operation
           as the predecessor corporation the successor
           remains liable for the products liability claims
           of its predecessor." 34/

     This theory of establishing successor liability differs
from the "de facto" and "mere continuation" exemptions in that
the new approach does not examine whether there is a continuity
of corporate structure or ownership (e.g., whether the predecessor
and successor corporation share a common director or officer).
Instead, according to the new theory,  liability will be imposed
if the successor corporation continues essentially the same
manufacturing or business operation as its predecessor corporation
even if no continuity of ownership-exists between them. 35/

     Until recently, this new approach for establishing successor
liability was confined mostly to product- liability cases.
However, a recent New Jersey decision  extended its application
to the area of environmental torts.   The Superior Court of New
Jersey, in N.J. Transportation Department v. PSC Resources,
Inc. _/, rejected the traditional corporate approach to
successor liability where the defendant  and its predecessor
corporation had allegedly discharged hazardous wastes.  The
court reasoned that the underlying policy rationale for
abandonment of the traditional approach  in defective product
cases is applicable to environmental torts.  Therefore, the
court held that a corporation which purchased assets of another
corporation and engaged in the practice  of discharging hazar-
dous waste into a state-owned lake is  strictly liable for
present and previous discharges made by  itself and the prede-
cessor corporation because the successor continued the same
waste disposal practice as its predecessor.
34/  Ramirez v. Amstead Indus., Inc., 171 N.J. Super. 261, 278,
     408 A.2d 818 (Super. Ct. App. Div. 1979), aff'd, 86 N.J.
     332, 431 A.2d 811 (1981).

!!/  See Ray v« Alad Corp., 19 Cal. 3d 22, 560 P.2d 3, 136 Cal.
     Rptr. 574 (1977); some form of acquisition, however, is
     still required.  See Meisal v. Modern Press, 97 Wash.
     2d 403, 645 P.2d 693.

     175 N.J. Super. 447, 419 A.2d 1151 (Super. Ct. Law Div.
     1980);
                           G-28

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                              -15-
     A similar "continuity of business operation" approach has
been used., in cases involving statutory violations. *'_/  The
Ninth Circuit, for example, held in a case involving the Federal
Insecticide, Fungicide, and Rodenticide Act [FIFRA] 38/r that
"EPA's authority to extend liability to successor corporations
stems from the purpose of the statute it administers, which is
to regulate pesticides to protect the national environment." 39/
furthermore, the court noted that "(t]he agency may pursue the""
Objectives of the Act by imposing successor liability where it
will facilitate enforcement of the Act." 40/  After establishing
that there had been violations of FIFRA by the predecessor
corporation, the court found that there was substantial continuity
of business operation between the predecessor and successor
corporations to warrant imposition of successor liability.

     Although CERCLA is not primarily a regulatory statute,
public policy considerations and the legislative history of
the Act clearly indicate that federal law would be applicable
to CERCLA situations involving successor liability. *y
Therefore, it is reasonable to assume that courts would similarly-
adopt'the federal "continuity of business operation approach"
in cases involving CERCLA.


Conclusion

     In establishing successor liability under CERCLA,  the
     See Golden State Bottling Co. v. NLRB, 414 U.S. 168, 94
     S.Ct. 414, 38 L.Ed2d 388 (1973); Slack v. Havens, 522
     F.2d 1091 (9th Cir. 1975).
38/  7 U.S.C. $136 et_ seq.
  /
     Oner II, Inc. v. United States Environ. Protection
     Agency, 597 F.2d 184, 186 (9th Cir. 1979).
     See discussiont supra, n. 19;  One of Congress1 primary
     concerns in enacting CERCLA was to alleviate the vast
     national health hazard created by inactive and abandoned
     disposal sites.  See e.g. ,  Remarks of Rep. Florio, 126
     Cong. Rec. H. 9,154 (Sept.  19, 1980), 126 Cong. Rec.
     H. 11,773 (Dec. 3. 1980).
                             G-29

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                              -16-
Agency should initially utilize the "continuity of business
operation" approach of federal law.  However, to provide
additional support or an alternative basis for successor
corporation liability, the Agency should be prepared to apply
the traditional exemptions to the general rule of non-liability
in asset acquisitions.

cc:  A. James Barnes, General Counsel
                      \
                         G-30

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         1<1 , CL/OIM I cb tfWIRONMENTAL PROTECTION AGENCY

                      WASHINGTON. D.C. 20460
                           SEP 1 0 1984
                                                         Of t
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              POLICY ON ENFORCING INFORMATION REQUESTS
                    IN HAZARDOUS WASTE CASES
INTRODUCTION
     Section 104 of che Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) and section 3007 of the
Resource Conservation and Recovery Act (RCRA) provide EPA with
considerable authority to obtain information from parties involved
with hazardous substances or hazardous wastes (collectively
"hazardous materials").]_/  Information request letters issued
pursuant to these sections have proven quite useful, particularly
because of the high rate of compliance associated with these
letters.  Occasionally, however, letter recipients refuse to
respond to requests, or provide an inadequate response.  This
policy document delineates statutory authority to obtain informa-
tion and sets forth options available to the Agency to enforce
requests for information in civil cases dealing wick hazardous
materials .£/
     This policy has been developed along with the guidance
document on issuing notice/information request letters ("Notice
Letter Guidance"), which will be issued shortly.
J_/   These sections also provide authority to enter facilities co
     perform inspections, conduct studies, and obtain samples.
Access authority, is discussed in a policy document which will be
issued separately.
2/   With regard to obtaining information in the context of
     parallel civil and criminal cases, consult Courtney M. Price's
memorandum "Policy and Procedures on Parallel Proceedings at che
Environmental Protection Agency," dated January 24, 1984.
                               G-32

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                              - 2 -


STATUTORY AUTHORITY

     Section 104(e)(l) of CERCLA provides:

           For purposes of assisting in determining the
           need for response 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 ...  furnish information
           relating to such substances...."
           (Emphasis supplied)—

     Section 3007(a) of RCRA provides:  Z/

            For purposes of ... enforcing the provisions
            of this title any person who generates, stores
            treats, transports, disposes of, or has handled
            hazardous wastes shall, upon request ... furnish
            information relating to such wastes...."
            (Emphasis supplied)

     In most information request letters, both sections should

be cited as authority for the request.  Note that it is appropriate

to cite RCRA S3007(a) as authority for requests relating to those

wastes the regulation of which has been partially suspended by

Congress pursuant to RCRA 53001(b)(3)(A) (e.g.. "mining waste").

This suspension does not limit the wastes which may be conside