article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Asbestos Management Incentive Act''. SEC. 2. FINDINGS. Congress finds the following: (1) Although asbestos is hazardous, the risk of asbestos- related disease depends upon exposure to airborne asbestos fibers. (2) Data available to the Environmental Protection Agency suggest that average airborne asbestos levels in buildings are very low. Accordingly, the health risk to most building occupants also appears to be very low. (3) The Environmental Protection Agency has estimated that only 20 percent of all buildings (including public and commercial buildings, residential apartment buildings of 10 units or more, and Federal buildings) contain friable asbestos- containing material. (4) The Environmental Protection Agency has found that removal of asbestos is often not the best course of action to reduce asbestos exposure. In fact, by releasing asbestos- containing material fibers into the air, an improper or unnecessary removal can create a dangerous situation where none previously existed and could result in a net increase in human exposures and risks. (5) The Environmental Protection Agency requires asbestos removal only to prevent significant public exposure to airborne asbestos fibers during building demolition or renovation activities. (6) Many lending institutions require the removal of asbestos, regardless of its condition, from commercial buildings before approving loans secured by those buildings because of the potential liability for the health of the occupants or property damages for failure to remove the asbestos. (7) The Environmental Protection Agency recommends a pro- active, in-place management program whenever intact asbestos- containing material is discovered. (8) The American Medical Association's Council on Scientific Affairs has stated that ``it is better that society use its limited financial resources in learning how to live safely with [asbestos] than in attempting to remove it totally from the environment.'' (9) The September 1991 report of the Health Effects Institute's Asbestos Literature Review Panel stated that ``there does not appear to be sufficient risk to the health of general occupants to justify arbitrarily removing intact asbestos-containing material from well-maintained buildings''. The report also acknowledged that ``because custodial and maintenance workers may be transiently exposed to higher levels of asbestos, their added life-time risk of cancer may be appreciably higher.'' SEC. 3. EFFECT OF ASBESTOS INSPECTION ON LENDING INSTITUTIONS. (a) Liability Immunity.--A lending institution that makes a loan or other extension of credit secured by a mortgage or other lien on a commercial building shall not be liable, from the time the loan or other extension of credit is made until it is renegotiated or a superseding loan or other extension of credit is made, under any Federal, State, or local law to any person for injuries, costs, damages, expenses, loss, or other obligation (including claims for indemnification or contribution and claims by third parties for death, personal injury, illness or loss of or damage to property or economic loss) which results from the presence of asbestos-containing material in the building in any case in which-- (1) the building was constructed during the 5-year period ending on the date that the loan or other extension of credit is made, and the building's construction manager certifies that the building contains no asbestos-containing material; or (2) the building-- (A) is one for which an asbestos inspection was conducted in accordance with section 6 after January 1, 1989, and during the 5-year period ending on the date that the loan or other extension of credit is made (as demonstrated by appropriate documentation); (B) has not been significantly rebuilt or renovated in the area that contains asbestos-containing material since that inspection was completed; (C) is one in which that portion of asbestos- containing material which the management planner recommended for removal has been removed in accordance with the Occupational Safety and Health Act and the regulations promulgated pursuant to section 7(a); and (D) is one in which an operations and maintenance program is currently being conducted in accordance with section 8 and the regulations promulgated pursuant to section 7(a) for remaining asbestos-containing materials which the management planner recommended be handled in place. (b) Limitation.--The immunity from liability provided in subsection (a) shall not apply if-- (1) the lending institution requires removal of asbestos- containing material that the management planner has recommended be handled in place; or (2) the lending institution requires an asbestos inspection of the building despite the fact that-- (A) the loan applicant demonstrates, with appropriate documentation, that the conditions in subsection (a)(1) or (a)(2) have been satisfied; or (B) the loan applicant demonstrates, with appropriate documentation, that all asbestos-containing material has been removed from the building. (c) Exclusion.--The immunity from liability provided in subsection (a) shall not apply to a subsidiary of a lending institution in any case in which the lending institution makes a loan or other extension of credit secured by a mortgage or other lien on a commercial building, and the subsidiary is the person to which the loan or other extension of credit is made. For purposes of this subsection, the term ``subsidiary'' means any company that is owned or controlled, directly or indirectly, by a lending institution. (d) Effective Date.--This section shall take effect upon the promulgation of regulations by the Administrator of the Environmental Protection Agency pursuant to section 7(a). SEC. 4. LIABILITY IN THE EVENT OF FORECLOSURE. In the case of a lending institution that is immune from liability with respect to a commercial building under section 3 and acquires title to such building through foreclosure or other exercise of rights under a security interest, the immunity from liability shall continue in effect so long as the lending institution maintains the operations and maintenance program for the building in accordance with the regulations promulgated pursuant to section 7(a), the Environmental Protection Agency asbestos guidance documents, and this Act. SEC. 5. CONSTRUCTION OF ACT. The requirement by a lending institution that a loan applicant conduct an asbestos inspection in accordance with this Act of a building to be secured by a loan, and the conducting of an operations and maintenance program in the building after foreclosure or other exercise of rights under a security interest, shall not be construed as participation in the management of the building by the lending institution and shall be considered to be an activity carried out by the lending institution solely to protect the institution's security interest. SEC. 6. ASBESTOS INSPECTION REQUIREMENTS. (a) In General.--For purposes of this Act, an asbestos inspection of a commercial building, if the loan applicant chooses to obtain one, shall be conducted by a qualified management planner for the purpose of determining whether asbestos-containing material is present in the building. If an inspection reveals the presence of asbestos-containing material, the management planner shall recommend specific response actions for each individual area of the building where such material is found. The recommendations shall be made in accordance with the regulations promulgated pursuant to section 7(a) and with the Environmental Protection Agency asbestos guidance documents. (b) Management Planner Qualifications.--For purposes of this Act, a qualified management planner is a person who meets all of the following requirements: (1) The person must be accredited, pursuant to title II of the Toxic Substances Control Act, as an inspector and management planner for asbestos-containing material in a public or commercial building. (2) The person must not own or control or be under the control of (A) any entity which carries out response actions for asbestos-containing material from buildings, (B) any owner or manager of the building being inspected, or (C) any lending institution making a loan or other extension of credit secured by a mortgage or other lien on the building being inspected. For purposes of this paragraph, a person controls an entity if the person, directly or indirectly, owns any amount of the voting stock or other type of ownership interest in the entity. (c) Accreditation of Management Planners for Public and Commercial Buildings.--Section 206 of the Toxic Substances Control Act (15 U.S.C. 2646) is amended as follows: (1) Paragraph (2) of subsection (a) is amended by inserting before the comma the following: ``or for a public or commercial building''. (2) Clause (ii) of subsection (a)(1)(A) is amended by inserting before the period the following: ``or for public or commercial buildings''. SEC. 7. ENVIRONMENTAL PROTECTION AGENCY REQUIREMENTS. (a) Asbestos Inspection and Management Standards for Public and Commercial Buildings.--Not later than 1 year after the date of the enactment of this Act, the Administrator of the Environmental Protection Agency shall promulgate regulations governing the inspection and management of asbestos in public and commercial buildings for purposes of this Act only. The regulations shall include-- (1) detailed guidelines for management planners to determine whether asbestos-containing material should be removed or managed in place in a public or commercial building; (2) appropriate practices for conducting operations and maintenance programs in public or commercial buildings in which asbestos-containing material is managed in place; and (3) standards, applicable to persons complying with section 8(1), for periodic surveillance of asbestos-containing material that is managed in place in commercial buildings, including standards for the training of maintenance and custodial staff working in such buildings that are equivalent to the standards for the training of maintenance and custodial staff of local educational agencies under title II of the Toxic Substances Control Act. (b) Revision of Environmental Protection Agency Asbestos Guidance Documents.--The Administrator of the Environmental Protection Agency shall periodically update, revise, and republish the Environmental Protection Agency asbestos guidance documents. SEC. 8. OPERATION AND MAINTENANCE REQUIREMENTS. For purposes of section 3(a)(2)(D), the following requirements must be met after an asbestos inspection of the building concerned is conducted: (1) The owner or operator shall ensure that the remaining asbestos-containing material is visually inspected, not less frequently than every 6 months, by a member of the maintenance or custodial staff, or another person, who has undergone training in accordance with the standards contained in the regulations promulgated pursuant to section 7(a)(4). (2) All remaining accessible asbestos-containing material in public and maintenance areas of the building, including asbestos in thermal system insulation and spray-on and trowelled-on asbestos-containing material but excluding intact vinyl floor tile and ceiling tile in public areas, shall be prominently labeled. The owner or operator shall ensure that access to any remaining asbestos-containing material located in inaccessible areas, such as in spaces between floors or walls of the building, is permitted only to persons who have been notified of the presence of the asbestos-containing material. (3) After the inspection referred to in section 3(a)(2)(A), a report on the inspection shall be kept on file in the building. Such report shall include an accounting of remaining asbestos-containing material, any such material recommended for removal, and any removal that has taken place since the previous inspection. Such report shall be available in the building, in the administrative offices or other appropriate place for inspection by tenants and employees in the building, maintenance workers of the building, and building contractors. The inspection report shall be updated after each subsequent inspection pursuant to paragraph (1) and after any change in condition of asbestos-containing material being managed in place. (4) After each inspection pursuant to paragraph (1), the owner of the building shall notify maintenance workers of the building, either in writing or by posting notice, that an inspection has occurred and that an inspection report is available for inspection. SEC. 9. RELATIONSHIP TO OTHER LAW. (a) Clean Air Act.--Nothing in this Act shall be construed or interpreted to preempt, supersede, or otherwise affect any requirement to remove asbestos from a building pursuant to section 112 of the Clean Air Act (42 U.S.C. 7412), as implemented through regulations known as the national emission standards for hazardous air pollutants (40 C.F.R. 61). (b) Limited Requirements.--Nothing in this Act shall be construed or interpreted as a general requirement for inspections or operations and maintenance programs in public and commercial buildings. The requirements of sections 6, 7, and 8 are established solely to enable lending institutions to satisfy the conditions of this Act for purposes of obtaining immunity from liability under section 3. SEC. 10. DEFINITIONS. For purposes of this Act, the following definitions apply: (1) The term ``asbestos-containing material'' has the meaning given that term by section 202(4) of the Toxic Substances Control Act (15 U.S.C. 2642(4)). (2) The term ``commercial building'' means any building that is not a publicly owned building and that is not a school building as defined in section 202(13) of the Toxic Substances Control Act, except that such term does not include any residential building of fewer than 10 units that is not part of a complex of other residential buildings under common ownership. (3) The term ``EPA asbestos guidance documents'' means-- (A) the most current version of the publication of the Environmental Protection Agency titled ``Guidance for Controlling Asbestos-Containing Materials in Buildings'' (also known as the ``Purple Book''); (B) the most current version of the publication of the Environmental Protection Agency titled ``Managing Asbestos in Place'' (also known as the ``Green Book''); and (C) any other publication of the Environmental Protection Agency, including any guidance documents published pursuant to section 7(a), published for the purpose of enabling building owners to select and apply appropriate asbestos control and abatement actions in their buildings. (4) The term ``lending institution'' means (A) a bank, savings and loan association, credit union, or similar institution insured by, or subject to the supervision, approval, or regulation of, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Office of Thrift Supervision, or the National Credit Union Administration; (B) any other person, including an insurance company, that makes direct loans or other extensions of credit secured by mortgages or other liens on commercial buildings; (C) any Federal agency to the extent the agency makes direct loans or other extensions of credit secured by mortgages or other liens on commercial buildings; and (D) the Federal Deposit Insurance Corporation, the National Credit Union Administrator Board, and the Resolution Trust Corporation, in such corporation's or Board's capability as conservator, receiver, or liquidating agency for any insured depository institution (as that term is defined in section 3 of the Federal Deposit Insurance Act). The term does not include any institution or Federal agency engaged primarily in the purchase of mortgage loans. (5) The term ``mortgage'' means a lien as is commonly given to secure advances on, or the unpaid purchase price of, a commercial building (and related real estate) under the laws of the State in which the building is located, together with the credit instrument, if any, secured thereby. The term includes second mortgages and other subsequent liens on a commercial building given to secure advances or loans. (6) The term ``response action'' has the meaning given that term by section 202(11) of the Toxic Substances Control Act (15 U.S.C. 2642(11)). HR 1000 IH----2
summary: Asbestos Management Incentive Act - Absolves lending institutions that make loans or credit secured by liens on commercial buildings from liability resulting from asbestos material in any case in which the building was constructed during the five-year period ending on the date that the loan was made and the building's construction manager certifies that the building contains no asbestos-containing material, or in the case of any building: (1) for which an asbestos inspection was conducted after January 1, 1989, and during such five-year period; (2) that has not been significantly rebuilt in the area that contains such material since that inspection was completed; (3) for which that portion of material recommended for removal has been removed; and (4) for which an operations and maintenance program is currently being conducted. Bars immunity from liability if the lending institution requires: (1) removal of material that the management planner has recommended be handled in place; or (2) an asbestos inspection of the building despite the fact that the loan applicant demonstrates that certain conditions have been satisfied or that all such material has been removed. Makes immunity inapplicable to a subsidiary of a lending institution if the subsidiary is the person to whom the loan is made. Continues liability for institutions that acquire title to a building through foreclosure as long as the institution maintains an operation and maintenance program. Sets forth requirements for asbestos inspections and management planner qualifications. Amends the Toxic Substances Control Act to prohibit persons from preparing asbestos management plans for public or commercial buildings unless they are accredited. Directs the Administrator of the Environmental Protection Agency to: (1) promulgate regulations governing the inspection and management of asbestos in public and commercial buildings; and (2) update and revise asbestos guidance documents periodically. Requires, after an asbestos inspection: (1) the remaining asbestos-containing material to be visually inspected every six months; (2) all remaining material in public and maintenance areas of the building to be prominently labeled; and (3) a report to be completed and made available to maintenance workers.