EPA540-R-98-024
United States       Solid Waste and        OSWER9205.5-17A
Environmental Protection  Emergency Response       PB98-963 232
Agency	(5305W)	June 1998



   RCRA, Superfund & EPCRA

        Hotline Training Module
    Introduction to:
        Statutory Overview of
               CERCLA
           Updated February 1998

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                                         DISCLAIMER

This document was developed by Booz-Allen & Hamilton Inc. under contract 68-WO-0039 to EPA. It is
intended to be used as a training tool for Hotline specialists and does not represent a statement of EPA
policy.

The information in this document is not by any means a complete representation of EPA's regulations or
policies. This document is used only in the capacity of the Hotline training and is not used as a reference
tool on Hotline calls. The Hotline revises and updates this document as regulatory program areas change.

The information in this document may not necessarily reflect the current position of the Agency.  This
document is not intended and cannot be relied upon to create any rights, substantive or procedural,
enforceable by any party in litigation with the United States.
                        RCRA, Superfund & EPCRA Hotline Phone Numbers:

           National toll-free (outside of DC area)                          (800) 424-9346
           Local number (within DC area)                                (703) 412-9810
           National toll-free for the hearing impaired (TDD)                 (800) 553-7672
                          The Hotline is open from 9 am to 6 pm Eastern Time,
                           Monday through Friday, except for federal holidays.

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                 STATUTORY OVERVIEW OF CERCLA

                                CONTENTS



1.  Introduction 	 1

2.  Statutory Overview 	 3
   2.1 Title I — Hazardous Substances Releases, Liability, Compensation 	 4
   2.2 Title II — Hazardous Substance Response Revenue Act of 1980	10
   2.3 Title III — Miscellaneous Provisions	10
   2.4 Title IV — Pollution Insurance	11
   2.5 Title V — Amendments to the Internal Revenue Code of 1986 	11
   2.6 Reauthorization	12

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                                                      Statutory Overview of CERCLA - 1
                           1.   INTRODUCTION
This module presents a brief overview of the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), the statute through which
Congress established EPA's hazardous substance release reporting and cleanup
program, known as the "Superfund" program.  The statute provides the legal
authority and general framework for the program, while specific procedural
requirements can be found in the regulations and guidance documents.  It is vital
that Hotline Information Specialists be knowledgeable about the  statute itself
because it is the primary reference used to answer questions relating to the
Superfund program. This module presents information on the CERCLA statute
only, not the regulations promulgated pursuant to the statute.

Each site cleanup conducted pursuant to CERCLA is unique, and must be performed
in a manner that best suits site conditions.  The Hotline answers  questions about
CERCLA statutory and regulatory requirements, and EPA policies.  Complex, site-
specific technical and legal considerations often dominate the decision-making
process.  However, the Hotline does not answer questions about  the application of
these requirements and policies to particular cases; that is handled by EPA program
offices, including the Office of Solid Waste and Emergency Response (OSWER), the
Office of Enforcement Compliance and Assurance (OECA), and the Regions.

Citations to CERCLA may be made in two ways: by title and section, as the law was
originally enacted (e.g., CERCLA §103); and by title, chapter, subchapter, and section
of the United States Code (U.S.C.) (e.g., 42 U.S.C. §9603), which refers to the
government codification.  Callers on the Hotline will use both methods of reference.
Most written work at the Hotline lists CERCLA references as originally enacted, but
since you will encounter both methods  of citation, it is important to become
familiar with the U.S. Code as well.  In the  U.S.C., CERCLA is found in Title 42,
"The Public Health and Welfare," Chapter 103.  The chapter is then divided into
subchapters, which match up with the titles of CERCLA  (e.g., Title I of CERCLA is
equivalent to Subchapter I of 42 U.S.C. Chapter 103). The sections are broken down
in the same manner as CERCLA, beginning with §9601,  which corresponds  to
CERCLA §101; 42 U.S.C. §9602 is the same as CERCLA §102, and so on. Your copy of
the statute came  from the U.S.C., but the sections of the Act are also noted to
facilitate easy reference. This module will refer to sections of the Act, since  that is
the method of citation EPA uses in directives and guidance documents.

When you have completed this module, you will be familiar  with the basic
structure of the Act. This should provide you with a solid foundation to build on as
you progress through the Hotline's CERCLA training program. Before you  begin
this module, review CERCLA.  In particular, you should study the table of contents
found at the beginning of the statute, and the text of Title I. The  Superfund
Amendments and Reauthorization Act of 1986  (SARA) both amends CERCLA and
incorporates free-standing statutes.  This module follows the  structure of the

  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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 2 - Statutory Overview of C ERG LA
statute's table of contents but does not address the provisions that do not amend
CERCLA, such as SARA Title III (except for Title V).
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                       but is an introduction used for Hotline training purposes.

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                                                     Statutory Overview of CERCLA - 3
                       2.  STATUTORY OVERVIEW
The statutory "pieces" of Superfund consist of the Comprehensive Environmental
Response, Compensation,  and Liability Act of 1980, the Superfund Amendments
and Reauthorization Act of 1986 (SARA), and subsequent reauthorization in 1990, as
part of the Omnibus Budget Reconciliation Act. Together with some minor
amendments, these statutes provide the legal framework and the funding authority
for the program. The following public laws comprise the Superfund Program:

   •   Public Law 96-510-CERCLA of 1980
   •   Public Law 99-499 - SARA
   •   Public Law  101-508 - Omnibus Budget Reconciliation Act with Amendments
      to CERCLA
   •   Public Law  100-202 - Amendments/Appropriations
   •   Public Law  100-647 - Amendments/Appropriations
   •   Public Law  101-144  - Independent Agencies Appropriations
   •   Public Law  102-426 - Community Environmental Response  Facilitation Act.

The first federal cleanup program began in 1972 with the enactment of the Clean
Water Act (CWA).  Section 311 of CWA established a program for  cleaning up spills
of oil and hazardous substances in navigable waters. The regulations for this
program became the foundation for the CERCLA program.

With the  passage of time and increased knowledge about human health and the
environment, the legacy of more than  100 years of industrial growth grew more
apparent.  Congress enacted CERCLA in 1980 in response to public outrage over the
dangers posed by abandoned  hazardous waste sites. The now infamous scenes of
environmental disaster at  Love Canal and Times Beach prompted  Congress to create
and give to EPA the legal tools and funding necessary to address these
environmental problems.  Congress established a program in CERCLA to  identify
sites where hazardous substances have been, or might be, released into the
environment; to evaluate the  dangers present; and to ensure that the sites are
cleaned up by the  government or the parties responsible for the contamination.
Because Congress established a large trust fund in CERCLA, which is primarily
funded by taxes levied on certain petroleum products and chemicals,  the program
became known as  "Superfund." This trust fund, or Superfund, pays for the
CERCLA program.

In October 1986, CERCLA  was amended by SARA.  SARA also added free-standing
legislation which does not amend CERCLA (most notably, SARA Title III, otherwise
known as the Emergency  Planning and Community Right-to-Know Act).  The 1990
reauthorization  of CERCLA provides continuing funding for the program, but
makes no changes to the statute itself.   (See section 2.6 of this module for further
discussion on CERCLA reauthorization.)  The  Community Environmental
Response Facilitation Act (CERFA), which became law in October 1992, amends the

  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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statutory language of CERCLA §120(h) which deals with the transfer of federal
property.

As an Information Specialist, you are required to have a thorough understanding of
the parts of SARA that amended original CERCLA provisions, as well as SARA
Title V, which provides the framework for the environmental taxes that establish
the Hazardous Substance Superfund and the Leaking Underground Storage Tank
Trust Fund. The remainder of this module is a section-by-section breakdown of the
parts of CERCLA with which you should be most familiar. The module follows the
structure of the statute to help familiarize you with its content.
2.1   TITLE  I — HAZARDOUS SUBSTANCES RELEASES, LIABILITY,
      AND COMPENSATION

Title I provides the basic framework for the Superfund process.  It establishes the
authority to regulate and sets notification requirements for releases, liability for
releases, and the steps to follow in cleaning up a site. This section of the module
references other sources of information that provide insight on the issues discussed.

DEFINITIONS

Section 101 defines terms that are critical to understanding the basics of the
Superfund program. These definitions are used throughout both the statute and the
codified regulations. Specific terms defined in this section that are an integral part of
CERCLA include "release," "hazardous substance," and "owner or operator."  For
example, to understand liability under CERCLA for contamination resulting from
disposal of a hazardous substance, you must first understand  the definition of a
hazardous substance, set out in §101(14).

REPORTABLE QUANTITIES AND ADDITIONAL DESIGNATIONS

Section 102 of CERCLA requires EPA to promulgate regulations adjusting the
quantity of a hazardous substance needed to be released before the release becomes
reportable. Hazardous substances have a statutory reportable  quantity (RQ) of one
pound, unless an RQ has been established by another statute (e.g., CWA or Clean
Air Act), until EPA establishes an adjusted RQ through regulation.  EPA may also
designate additional hazardous substances pursuant to CERCLA §102(a).

NOTICES AND PENALTIES

Under CERCLA §103(a), a person must immediately notify the National Response
Center in the event  of a release into the environment that exceeds an RQ.  Section
103 addresses these notification requirements, penalty provisions for failure to
provide proper notification,  and exemptions from reporting requirements.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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                                                       Statutory Overview of CERCLA - 5
Section 103(c) requires facility owners or operators to notify EPA if the facility has
stored, treated, or disposed of a hazardous waste.  This requirement does not apply
to facilities which have been permitted or accorded interim status under Subtitle C
of the Resource Conservation and Recovery Act (RCRA).  The responsibility to
report under §103(c), know as the "lasting provision," is still active and applicable.

RESPONSE AUTHORITIES

Section 104 gives EPA the authority to  take action in order to protect human health
and the environment. Where there is a release or threat of release of a hazardous
substance, EPA can conduct a removal action to alleviate the immediate threats
posed by the site. These actions could include, but are not limited to, fencing off the
area, removing waste for safe disposal,  or providing drinking water to area
residents.  Removal actions are specifically defined in CERCLA §101(23). Once there
is no imminent danger,  EPA can then use remedial action authority to develop
long-term cleanup strategies as  necessary to address the contamination problem.
Remedial action is defined to include,  "actions consistent with  permanent remedy
taken instead of or in addition to removal actions"  (CERCLA §101(24)).

NATIONAL CONTINGENCY PLAN

The National Contingency Plan (NCP), originally established under §311(c) of the
Federal Water Pollution Control Act, sets forth the process and regulations for
conducting Superfund cleanup actions and is codified in 40 CFR Part 300.  Section
105 required EPA to revise the NCP to reflect the statutory provisions of CERCLA
and subsequently SARA. This section additionally  requires the establishment of the
Hazard Ranking System (HRS).  The  HRS is a screening tool EPA uses to help
determine which sites merit inclusion on the Superfund National Priorities List
(NPL).

ABATEMENT ACTION

Section 106 grants EPA the authority to compel persons to conduct cleanup activities
if there is a release of a hazardous substance that presents  an imminent and
substantial danger to human health or the environment. Section  106 allows EPA to
use administrative orders and judicial actions to direct a potentially responsible
party (PRP)  to conduct a cleanup. Anyone failing to comply with an order issued
pursuant to §106 can be fined up to $27,500 per  day (61 FR 69359; December 31, 1996).

LIABILITY

Section 107 outlines who can be held liable for contamination pursuant to CERCLA
and the costs this liability encompasses. These are  known  as responsible parties
(RPs).  When EPA is investigating contamination at a site, any person potentially
covered by §107(a) can be designated  as a potentially responsible party (PRP). RPs
include the current owner and operator of a contaminated property, any person who

  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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at the time of disposal of hazardous substances owned or operated the property, or
any person who arranged for disposal or transportation of hazardous substances at a
property where a release has occurred. Section 107(b) provides three possible
defenses to liability: an act of God, an act of war, or action by a third party under
certain circumstances. Section 107 also provides several exemptions  from liability
such as the normal application of a pesticide product  (§107(1)).

FINANCIAL RESPONSIBILITY

Section 108(b) requires that EPA promulgate regulations concerning financial
responsibility to cover liability under §107 of the Act.  These regulations would
require that any facility responsible for managing hazardous substances prove that it
has the means to pay for any potential contamination at the site. No regulation to
implement §108(b) of the statute has been promulgated to date.

CIVIL PENALTIES AND AWARDS

CERCLA requires RPs to perform many specific duties, such as to provide
notification, retain certain records, and comply with enforcement orders.  If a person
fails to comply with the specific provisions detailed in §109, EPA may seek or assess
civil penalties.  These provisions include failure to provide proper notice, failure to
provide proper records, violation of settlement agreements, and failure to comply
with administrative consent orders, consent decrees, or agreements under §120. The
statute divides the civil penalties into three categories which differ in respect to
assessment procedures:  Class I and Class II administrative penalties, and judicial
penalties. A Class I administrative penalty may be assessed for not more than
$27,500 per violation,  and a Class II penalty may be assessed for not more than
$27,500 per day during which the violation occurs.  A civil action may be brought in
the appropriate United States District Court to assess  and collect a fine of not more
than $27,500 per day  of violation.

EMPLOYEE PROTECTION

Section 110 grants protection to any employee who provides information that
results in a CERCLA  action. This section provides that no one may be fired for
providing incriminating information about a facility and establishes an appeal
process for any person who believes that this has occurred. Such appeals are
handled by the Secretary of Labor.

USES OF THE FUND AND CLAIMS PROCEDURES

Congress appropriates to EPA money from the Hazardous Substance Superfund for
the activities described in §111 of the statute.  Such activities include  cleanups;
claims for damage to natural resources;  research, development, and demonstration;
and reimbursement to local governments that have conducted cleanup activities.
Specific restrictions are applied to each type of activity.  The procedures for asserting

  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                     but is an introduction used for Hotline training purposes.

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                                                       Statutory Overview of CERCLA - 7
a claim against the fund are detailed in §112.  Section 112 also sets time constraints,
known as statutes of limitations, on claims made against the fund.

LITIGATION, JURISDICTION, AND VENUE

General legal procedures applicable to CERCLA actions are established in §113.
According to §113, a person may challenge any regulation promulgated under
CERCLA, only by filing a petition for review in the United States Court of Appeals
for the District of Columbia Circuit. A petition must be filed within 90 days of the
date of promulgation of the regulations. This section also contains statutes of
limitations for actions to recover response  costs and damages to natural resources.
According to §113(b), if an action is filed as the result of a release, venue will lie in
any district in which the release occurred or in which the defendant resides.  Section
113(f) provides for the legal remedy of contribution, which allows one PRP to bring
suit against another PRP for the latter's share  of response costs.

RELATIONSHIP TO OTHER LAWS

Section 114 (a) provides that nothing in CERCLA precludes any state from imposing
additional liability for the release of hazardous substances within that state.  A
person receiving compensation for removal costs pursuant to CERCLA may not
recover costs pursuant to any other federal or state law.

AUTHORITY TO DELEGATE AND ISSUE REGULATIONS

Section 115 authorizes the  President to assign CERCLA responsibilities and the
power to issue CERCLA regulations to federal agencies, including EPA.

SCHEDULES

When  a possible contaminated site is  discovered,  EPA enters information about the
release into the CERCLA Information System (CERCLIS) database. Section 116 set as
a goal  that by January 1, 1988, EPA complete a preliminary assessment for all sites
that were entered into CERCLIS prior to the enactment of SARA.  Sites needing
further investigation were required to undergo a more thorough evaluation by
January 1, 1989.  Sites that were listed in CERCLIS before the enactment of SARA
were required to undergo an evaluation for the NPL by 1990.  Currently, EPA must
evaluate  for the NPL each site that EPA concludes needs such evaluation within
four years after listing on CERCLIS.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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PUBLIC PARTICIPATION

Because site remediation can have significant effects on communities, SARA
required that public participation activities occur throughout the Superfund process.
Section 117 requires that before any remedial action is taken at a site, a public notice
must be published in a major local newspaper, and an opportunity for public
comment must be provided.  If the community needs assistance in interpreting
technical information about the hazards posed by the site, it may apply for a
Technical Assistance Grant by following the procedures in 40 CFR  Parts 30 and 33.
After the comment period, EPA publishes a final site remedial action plan, known
as a Record of Decision (ROD).  If the action taken differs in any significant respect
from the final plan, EPA must publish an explanation of the reasons such changes
were made.

HIGH PRIORITY FOR DRINKING WATER SUPPLIES

Section 118 provides that high priority for initiating cleanup and listing on the NPL
be given to facilities where the release of a hazardous substance threatens drinking
water supplies or drinking water wells.

RESPONSE ACTION CONTRACTORS

Section 119 provides that contractors conducting Superfund  response actions are not
liable for hazardous substances released except releases which result from the
contractors' negligence or intentional misconduct.  The intent of this section is to
reduce disincentives for contractors to engage in the cleanup process.

FEDERAL FACILITIES

Section 120 requires that federal facilities comply with the requirements of CERCLA
in the same manner and to the same extent as any nongovernmental entity. If a
remedial response is necessary at a federal facility on the NPL, the agency involved
must enter into an interagency agreement with EPA for the remedial action to be
taken by that agency.  EPA's guidance entitled Federal Facilities Hazardous Waste
Compliance Manual is a valuable reference document to assist in  answering
questions on  this issue.

Under §120(h) of CERCLA, whenever the U.S. government enters into a contract to
sell or transfer property, a notice must be filed with the deed, reporting any
hazardous substance that has been stored for a year or more, known to be released,
or disposed of on the property.  Section 120(h) was  amended  in 1992, by the
Community Environmental  Response Facilitation  Act  (CERFA), which additionally
requires the federal government, within specified deadlines, to identify
"uncontaminated"  property where hazardous substances or  petroleum products
have not been released, disposed of, or stored for more than a year. The purpose of
CERFA is to identify federal lands and properties offering opportunity for reuse and

  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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                                                       Statutory Overview of CERCLA - 9
redevelopment, expedite necessary remedial and corrective actions, make the
property available for sale, and where appropriate, ensure the continued liability of
the federal government.

CLEANUP STANDARDS

The basic goal of a cleanup at a CERCLA site is to protect human health and the
environment, preferably by significantly reducing the volume, toxicity,  or mobility
of contamination. The criteria used in selecting a remedy for a Superfund cleanup
are identified in the NCP.  The least preferred method of remediation would be
transferring waste off site without prior treatment (if other treatment alternatives
are available).  If a remedy is selected that requires waste to remain on site, EPA
must review the cleanup after five years to determine if the remedy remains
protective of human health and the environment.  This section also mandates that
the CERCLA remedies meet or waive applicable or relevant and appropriate
requirements (ARARs) of other federal and state environmental laws.

SETTLEMENTS

Section 122 sets forth different types of legal agreements that can be entered into
between EPA and PRPs to conduct a response action or pay response costs at a site.
Section 122 grants EPA the authority to enter into agreements with PRPs, and
encourages the PRPs to enter into these settlements by offering them protection
from further liability if they enter into and fulfill such  agreements.  When an
agreement is issued for a remedial action, it must be in the form of a consent decree,
and must be filed in the appropriate United States District Court. More  specific
information on the different types of settlements can be found in the guidance
entitled the Enforcement Project  Management Handbook (OSWER Directive
9837.2B).

REIMBURSEMENT TO LOCAL GOVERNMENTS

Section 123 authorizes  EPA to reimburse local governments up to $25,000  for
expenses they might incur while taking temporary emergency measures in response
to hazardous substance threats. To qualify for reimbursement, these emergency
measures must be necessary to prevent or mitigate injury to human health or the
environment.  The regulations for implementing reimbursement to local
governments can be found in  40 CFR Part 310.

METHANE RECOVERY

In general, §124 provides that an owner or operator of a facility that recovers
methane  from a landfill will not be held liable under CERCLA for a release or
threatened release unless he or she were negligent.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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CERTAIN RCRA WASTE

Section 125 requires revisions to the HRS to address facilities that contain
substantial volumes of RCRA §3001(b)(3)(A)(i) wastes.  These wastes include fly ash
wastes, bottom ash wastes, slag wastes, and flue gas emission control wastes
generated primarily from the combustion of coal or other fossil fuels.  The revised
HRS, which addresses the §125 requirements, was promulgated in the Federal
Register on December 14, 1990 (55 FR 51532).

INDIAN TRIBES

Section 126 requires that EPA provide Indian tribes substantially the same treatment
it would  afford to states for certain provisions of CERCLA.  These provisions
include notification of releases, consultation with EPA over selecting an appropriate
remedial action, and listing and delisting sites as priorities.
2.2   TITLE II — HAZARDOUS SUBSTANCE RESPONSE REVENUE
      ACT OF 1980

Title II of CERCLA amends the Internal Revenue Code of 1954 by adding three
subtitles: Subtitle A - Imposition of Taxes on Petroleum and  Certain Chemicals;
Subtitle B - Establishment of Hazardous Substance Response Trust Fund; and
Subtitle C - Post-Closure Tax and Trust  Fund.

SUBTITLE A

Subchapter A of Subtitle A imposes a tax on crude oil received at United States
refineries and petroleum products imported into the United States. Subchapter B of
Subtitle A imposes a tax on certain chemicals sold by a manufacturer, producer, or
importer. Section 4661 (b) of the Internal Revenue Code contains a list of these
taxable chemicals.  Title V of CERCLA adjusted the amount of taxes on petroleum
and certain chemicals  and is discussed later in this module.

SUBTITLES B AND C

Subtitles B and C of Title II were repealed by Title V of SARA.
2.3   TITLE III — MISCELLANEOUS PROVISIONS

Title III of CERCLA encompasses §§301-312 of the Act and includes various
provisions such as  citizen suits, reports and studies, and research, development, and
demonstration. A  few of the more commonly used sections are summarized below.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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                                                      Statutory Overview of CERCLA - 11
Section 301(h) requires the Administrator of EPA to submit an annual report to
Congress on progress achieved in implementing the Act during the previous fiscal
year.  These reporting requirements generate documents that are used by
Information Specialists and are requested by callers.

Section 310 grants citizens authority to bring a civil action against any other person
(including the United States) for violation of any standard, regulation, condition,
requirement, or order under CERCLA. A civil action may also be brought against
the President or other government official for failure to perform any
nondiscretionary duty under CERCLA.  The district court in which the action is
brought has the jurisdiction to enforce the standard, regulation, condition,
requirement, or order, and order action to correct the violation and impose any civil
penalty provided for the violation. The  court also has the jurisdiction to order the
President or any other government official to perform the act or duty concerned.

Section 311 establishes research,  development, and demonstration programs for
technologies that offer alternatives to conventional methods of handling site
cleanups.  Section 311(b) authorizes EPA's Administrator to carry out a program of
research, evaluation, testing, development,  and demonstration of alternative or
innovative  treatment technologies which may be used to protect human health and
the environment.  Section 311(d) calls for the establishment of centers for  hazardous
substance response and research.

Title III of CERCLA should not be confused with Title III of SARA, which amended
CERCLA. Whereas Title III of CERCLA contains miscellaneous provisions related
to the Superfund program, Title III of SARA is a free-standing act that promulgated
the Emergency Planning and Community-Right-to-Know Act (EPCRA).
2.4   TITLE IV — POLLUTION INSURANCE

Title IV, added by SARA, outlines the legal requirements related to the issuance of
pollution liability insurance. This type of insurance is intended to help a business
entity protect against the losses that might occur because of its  involvement at a
Superfund site. The enormous costs of Superfund  cleanups prompted the
insurance requirement.  Title IV clarifies the interactions between state and federal
insurance laws and  pollution liability insurance, and defines specific legal terms.
2.5   TITLE V — AMENDMENTS TO THE INTERNAL REVENUE
      CODE OF 1986

Title V of CERCLA, also called the Superfund Revenue Act of 1986, extended the
taxing authority of CERCLA and adjusted the amount of taxes on petroleum and
certain chemicals.  A few of the more pertinent sections are summarized below.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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Section 516 adds section 59A of chapter 1 to the Internal Revenue Code of 1986. This
section,  environmental taxes,  imposes an income tax on corporations as a means of
adding to the Superfund.  It affects all companies with a modified alternative
minimum taxable income  of more than $2 million, and is not restricted to
petroleum and chemical companies.

Section 517 establishes the Hazardous Substance Superfund by amending chapter 98
of the Internal Revenue Code of 1986. This section outlines the requirements for
payments into and out of the Superfund and the restrictions relating to use of the
money.

Title V also provides for the establishment, in §§521 and 522, of a Leaking
Underground Storage Tank (LUST) Trust Fund, which can be used to pay for
cleanup of releases from petroleum underground storage tanks.  The LUST Trust
Fund is  financed by a one-tenth of a cent per gallon tax on the sale of motor fuels.
2.6   REAUTHORIZATION

The taxing authority of SARA was to expire on December 31, 1991; however, the
Omnibus Reconciliation Act of 1990 extended the taxes without modification for
four years, through December 31, 1995. This extension allowed the program to
continue at a $1.7 billion annual authorized level.  Separately, the Superfund
program was reauthorized, without changes to the  text of the statute, until
September 30, 1994, a three-year extension from the expiration date of the SARA
authorization in 1991. Congress failed to reauthorize the Superfund program  before
September 30, 1994  (the end of the fiscal year), however, the program is still
operating  because funding continues to be appropriated to the Superfund program.
As of January 1, 1998, Congress had taken no action to reauthorize CERCLA.
  The information in this document is not by any means a complete representation of EPA's regulations or policies,
                    but is an introduction used for Hotline training purposes.

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