article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Superfund Recycling Equity Act of 1995''. SEC. 2. PURPOSES. The purposes of this Act are-- (1) to promote the reuse and recycling of scrap material, in furtherance of the goals of waste minimization and natural resource conservation, while protecting human health and the environment; (2) to level the playing field between the use of virgin materials and recycled materials; and (3) to remove the disincentives and impediments to recycling created by potential liability under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.). SEC. 3. CLARIFICATION OF LIABILITY UNDER CERCLA FOR RECYCLING TRANSACTIONS. Title I of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) is amended by adding at the end the following: ``SEC. 127. RECYCLING TRANSACTIONS. ``(a) Definitions.--In this section: ``(1) Consuming facility.--The term `consuming facility' means a facility where recyclable material is handled, processed, reclaimed, or otherwise managed by a person other than a person who arranges for the recycling of the recyclable material. ``(2) Recyclable material.-- ``(A) In general.--Subject to subparagraph (B), the term `recyclable material' means scrap paper, scrap plastic, scrap glass, scrap textiles, scrap rubber (other than whole tires), scrap metal, or spent lead- acid, spent nickel-cadmium, or other spent batteries, as well as minor quantities of material incident to or adhering to the scrap or spent material as a result of the normal and customary use of the material prior to the material becoming scrap or spent material. ``(B) PCBs.--The term `recyclable material' does not include a material that contains polychlorinated biphenyls in excess of-- ``(i) 50 parts per million; or ``(ii) any standard promulgated under Federal law after the date of enactment of this section. ``(3) Scrap metal.--The term `scrap metal' means 1 or more bits or pieces of metal parts (such as a bar, turning, rod, sheet, or wire), or 1 or more metal pieces that may be combined together with bolts or soldering (such as a radiator, scrap automobile, or railroad box car), that, when worn or superfluous, can be recycled, except for-- ``(A) a material that the Administrator excludes from the definition of scrap metal by regulation; and ``(B) a steel shipping container with a capacity of not less than 30 and not more than 3,000 liters, whether intact or not, that has any hazardous substance (but not metal bits or pieces) contained in or adhering to the container. ``(b) Limitation on Liability.-- ``(1) In general.--Subject to subsection (c), a person who arranges for the recycling of recyclable material shall not be liable under paragraph (3) or (4) of section 107(a). ``(2) Transactions deemed to be recycling of a recyclable material.--For purposes of this section, a transaction involving a recyclable material is considered to be arranging for recycling of recyclable material if the person arranging for the transaction can demonstrate, by a preponderance of the evidence, that, at the time of the transaction-- ``(A) the recyclable material met a commercial specification grade; ``(B) a market existed for the recyclable material; ``(C) a substantial portion of the recyclable material was made available for use as a feedstock for the manufacture of a new salable product; ``(D) the recyclable material could have been a replacement or substitute for a virgin raw material, or the product to be made from the recyclable material could have been a replacement or substitute for a product made, in whole or in part, from a virgin raw material; ``(E) in the case of a transaction occurring not later than 90 days after the date of enactment of this section, the person exercises reasonable care to determine that the consuming facility was in compliance with any substantive (and not procedural or administrative) provision of Federal, State, or local environmental law or regulation, and any compliance order or decree issued pursuant to the law or regulation, applicable to the handling, processing, reclamation, storage, or other management activity associated with the recyclable material; ``(F) in the case of a transaction involving scrap metal-- ``(i) in the case of a transaction occurring after the effective date of the issuance of a regulation or standard regarding the storage, transport, management, or other activity associated with the recycling of scrap metal that the Administrator promulgates under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) subsequent to the date of enactment of this section, the person acted in compliance with the regulation or standard; and ``(ii) the person did not melt the scrap metal prior to the transaction; and ``(G) in the case of a transaction involving a battery-- ``(i) the person did not recover the valuable components of the battery; ``(ii) in the case of a transaction involving a lead-acid battery, the person acted in compliance with any applicable Federal environmental regulation or standard regarding the storage, transport, management, or other activity associated with the recycling of a spent lead-acid battery; ``(iii) in the case of a transaction involving a nickel-cadmium battery-- ``(I) a Federal environmental regulation or standard is in effect regarding the storage, transport, management, or other activity associated with the recycling of a spent nickel-cadmium battery; and ``(II) the person acted in compliance with the regulation or standard; and ``(iv) with respect to a transaction involving a spent battery other than a lead- acid or nickel-cadmium battery-- ``(I) a Federal environmental regulation or standard is in effect regarding the storage, transport, management, or other activity associated with the recycling of the spent battery; and ``(II) the person acted in compliance with the regulation or standard. ``(3) Sweating.--For purposes of paragraph (2)(F)(ii), melting of scrap metal does not include the thermal separation of 2 or more materials due to differences in the melting points of the materials. ``(4) Processing of battery by third person.--For purposes of paragraph (2)(G)(i), a person who, by contract, arranges or pays for processing of a battery by an unrelated third person, and receives from the third person materials reclaimed from the battery, shall be considered not to have recovered the valuable components of the battery. ``(5) Reasonable care.--For purposes of paragraph (2)(E), reasonable care shall be determined using criteria that include-- ``(A) the price paid to or received by the person in the recycling transaction; ``(B) the ability of the person to detect the nature of the operations of the consuming facility concerning the handling, processing, reclamation, or other management activities associated with the recyclable material; and ``(C) the result of any inquiry made to an appropriate Federal, State, or local environmental agency regarding the past and current compliance of the consuming facility with substantive (and not procedural or administrative) provisions of Federal, State, and local environmental laws and regulations, and any compliance order or decree issued pursuant to the laws and regulations, applicable to the handling, processing, reclamation, storage, or other management activity associated with the recyclable material. ``(c) Exclusion From Limitation on Liability.-- ``(1) In general.--Subsection (b) shall not apply if the person arranging for recycling of a recyclable material-- ``(A) had an objectively reasonable basis to believe at the time of the recycling transaction that-- ``(i) the recyclable material would not be recycled; ``(ii) the recyclable material would be burned as fuel, or for energy recovery or incineration; or ``(iii) in the case of a transaction occurring not later than 90 days after the date of the enactment of this section, the consuming facility acting not in compliance with a substantive (and not a procedural or administrative) provision of any Federal, State, or local environmental law or regulation, or a compliance order or decree issued pursuant to the law or regulation, applicable to the handling, processing, reclamation, or other management activity associated with the recyclable material; ``(B) added a hazardous substance to the recyclable material for purposes other than processing for recycling; or ``(C) failed to exercise reasonable care with respect to the management or handling of the recyclable material. ``(2) Reasonable basis for belief.--For purposes of paragraph (1)(A), an objectively reasonable basis for belief shall be determined using criteria that include-- ``(A) the size of any business owned by the person; ``(B) the customary industry practices for any business owned by the person; ``(C) the price paid to or received by the person in the recycling transaction; ``(D) the ability of the person to detect the nature of the operations of the consuming facility concerning the handling, processing, reclamation, or other management activities associated with the recyclable material. ``(c) Permit Requirement.--For the purposes of this section, a requirement to obtain a permit applicable to the handling, processing, reclamation, or other management activity associated with a recyclable material shall be considered to be a substantive provision. ``(d) Regulations.--The Administrator may issue regulations to carry out this section. ``(e) Liability for Attorney Fees for Certain Actions.--Any person who commences an action for contribution against a person who is alleged to be liable under this Act but is found not to be liable as a result of this section shall be liable to the person defending the action for all reasonable costs of defending the action, including all reasonable attorney and expert witness fees. ``(f) Effect on Pending or Concluded Actions.--This section shall not affect a judicial or administrative action concluded prior to the date of enactment of this section, or a pending judicial action initiated by the United States prior to the date of enactment of this section. ``(g) Effect on Other Liability.--Nothing in this section affects the liability of a person under paragraph (1) or (2) of section 107(a). ``(h) Relationship to Liability Under Other Laws.--Nothing in this section affects-- ``(1) liability under any other Federal, State, or local law, or regulation promulgated pursuant to the law, including any requirement promulgated by the Administrator under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.); or ``(2) the ability of the Administrator to promulgate a regulation under any other law, including the Solid Waste Disposal Act.''.
summary: Superfund Recycling Equity Act of 1995 - Amends the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to absolve persons (other than owners or operators) who arranged for the recycling of recyclable material from liability for environmental response actions. Excludes from the definition of "recyclable material" any material that contains polychlorinated biphenyls in excess of 50 parts per million or any Federal standard promulgated after this Act's enactment. Considers transactions involving scrap paper, plastic, glass, textiles, rubber (other than whole tires), or metal or spent batteries to be arranging for recycling if the person arranging the transaction can demonstrate that: (1) the recyclable material met a commercial specification grade and a market existed for the material; (2) a substantial portion of the material was made available for use as a feedstock for the manufacture of a new saleable product; (3) the material (or product to be made from the material) could have been a replacement for a virgin raw material; (4) in the case of transactions occurring no later than 90 days after this Act's enactment, the person exercised reasonable care to determine that the consuming facility was in compliance with Federal, State, or local environmental laws or regulations; (5) in the case of transactions involving scrap metal that occurred after the effective date of a regulation or standard associated with scrap metal recycling promulgated under the Solid Waste Disposal Act, the person was in compliance with such regulation or standard and did not melt the metal prior to the transaction; and (6) in the case of transactions involving batteries, the person did not recover the valuable components of the battery and the person was in compliance with Federal environmental regulations or standards regarding battery recycling. Makes the exemptions from liability under this Act inapplicable if the person: (1) had an objectively reasonable basis to believe at the time of the recycling transaction that the recyclable material would not be recycled or would be burned as fuel or for energy recovery or incineration or that, in the case of transactions occurring no later than 90 days after this Act's enactment, the consuming facility was not in compliance with Federal, State, or local environmental laws or regulations; (2) added hazardous substances to the material for purposes other than processing for recycling; or (3) failed to exercise reasonable care with respect to the management of the material.