article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Common Sense Superfund Liability Relief Act of 1997''. SEC. 2. SMALL PARTY LIABILITY RELIEF UNDER SUPERFUND. (a) Liability Exemption.--Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)) is amended as follows: (1) In paragraph (4), by striking ``by such person,'' and all that follows through ``shall be liable for--'' and inserting in lieu thereof the following: ``by such person-- from which there is a release, or a threatened release, that causes the incurrence of response costs, of a hazardous substance, shall be liable for--''. (2) By designating the text beginning with ``The amounts recoverable'' and ending with ``this subsection commences.'' as paragraph (5) and aligning the margin of such text with paragraph (4). (3) By adding the following new paragraph after paragraph (5): ``(6)(A) Notwithstanding paragraphs (1) through (4) of this subsection, a person who does not impede the performance of a response action or natural resource restoration at a facility shall not be liable to the extent liability at such facility is based solely on paragraph (3) or (4) of this subsection, and the person arranged for disposal, treatment, or transport for disposal or treatment, or accepted for transport for disposal or treatment of only municipal solid waste or sewage sludge owned or possessed by such person, and the person is-- ``(i) the owner, operator, or lessee of residential property; ``(ii) a small business; or ``(iii) a small non-profit organization. ``(B) This paragraph shall have no effect on the liability of any other person.''. (b) Small Business Defined.--Section 101 of such Act (42 U.S.C. 9601) is amended by adding at the end the following new paragraph: ``(39) Small business.--The term `small business' refers to any business entity that employs no more than 100 individuals and is a `small business concern' as defined under the Small Business Act (15 U.S.C. 631 et seq.).''. SEC. 3. INNOCENT LANDOWNER PROTECTION UNDER SUPERFUND. (a) Environmental Site Assessment.--Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607) is further amended by adding at the end the following new subsection: ``(o) Innocent Landowners.-- ``(1) Conduct of environmental assessment.--A person who has acquired real property shall have made all appropriate inquiry within the meaning of subparagraph (B) of section 101(35) if he establishes that, within 180 days prior to the time of acquisition, an environmental site assessment of the real property was conducted which meets the requirements of paragraph (2). ``(2) Definition of environmental site assessment.--For purposes of this subsection, the term `environmental site assessment' means an assessment conducted in accordance with the standards set forth in the American Society for Testing and Materials (ASTM) Standard E1527-94, titled `Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process' or with alternative standards issued by rule by the President or promulgated or developed by others and designated by rule by the President. Before issuing or designating alternative standards, the President shall first conduct a study of commercial and industrial practices concerning environmental site assessments in the transfer of real property in the United States. Any such standards issued or designated by the President shall also be deemed to constitute commercially reasonable and generally accepted standards and practices for purposes of this paragraph. In issuing or designating any such standards, the President shall consider requirements governing each of the following: ``(A) Interviews of owners, operators, and occupants of the property to determine information regarding the potential for contamination. ``(B) Review of historical sources as necessary to determine previous uses and occupancies of the property since the property was first developed. For purposes of this subclause, the term `historical sources' means any of the following, if they are reasonably ascertainable: recorded chain of title documents regarding the real property, including all deeds, easements, leases, restrictions, and covenants, aerial photographs, fire insurance maps, property tax files, USGS 7.5 minutes topographic maps, local street directories, building department records, zoning/land use records, and any other sources that identify past uses and occupancies of the property. ``(C) Determination of the existence of recorded environmental cleanup liens against the real property which have arisen pursuant to Federal, State, or local statutes. ``(D) Review of reasonably ascertainable Federal, State, and local government records of sites or facilities that are likely to cause or contribute to contamination at the real property, including, as appropriate, investigation reports for such sites or facilities; records of activities likely to cause or contribute to contamination at the real property, including landfill and other disposal location records, underground storage tank records, hazardous waste handler and generator records and spill reporting records; and such other reasonably ascertainable Federal, State, and local government environmental records which could reflect incidents or activities which are likely to cause or contribute to contamination at the real property. ``(E) A visual site inspection of the real property and all facilities and improvements on the real property and a visual inspection of immediately adjacent properties, including an investigation of any hazardous substance use, storage, treatment, and disposal practices on the property. ``(F) Any specialized knowledge or experience on the part of the landowner. ``(G) The relationship of the purchase price to the value of the property if uncontaminated. ``(H) Commonly known or reasonably ascertainable information about the property. ``(I) The obviousness of the presence or likely presence of contamination at the property, and the ability to detect such contamination by appropriate investigation. A record shall be considered to be `reasonably ascertainable' for purposes of this paragraph if a copy or reasonable facsimile of the record is publicly available by request (within reasonable time and cost constraints) and the record is practically reviewable. ``(3) Appropriate inquiry.--A person shall not be treated as having made all appropriate inquiry under paragraph (1) unless-- ``(A) the person has maintained a compilation of the information reviewed and gathered in the course of the environmental site assessment; ``(B) the person exercised appropriate care with respect to hazardous substances found at the facility by taking reasonable steps to stop on-going releases, prevent threatened future releases of hazardous substances, and prevent or limit human or natural resource exposure to hazardous substances previously released into the environment; and ``(C) the person provides full cooperation, assistance, and facility access to persons authorized to conduct response actions or natural resource restoration at the facility, including the cooperation and access necessary for the installation, integrity, operation, and maintenance of any complete or partial response action or natural resource restoration at the facility.''. (b) Cross Reference.--Section 101(35)(B) of such Act (42 U.S.C. 9601(35)(B)) is amended by inserting after ``all appropriate inquiry'' the following: ``(as specified in section 107(o))''. SEC. 4. PROSPECTIVE PURCHASER PROTECTION UNDER SUPERFUND. (a) Limitations on Liability.--Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607) is further amended by adding at the end the following new subsection: ``(p) Limitations on Liability for Prospective Purchasers.-- Notwithstanding paragraphs (1) through (4) of subsection (a), to the extent the liability of a person, with respect to a release or the threat of a release from a facility, is based solely on subsection (a)(1), the person shall not be liable under this Act if the person-- ``(1) is a bona fide prospective purchaser of the facility; and ``(2) does not impede the performance of any response action or natural resource restoration at a facility.''. (b) Prospective Purchaser and Windfall Lien.--Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (as amended by subsection (a)) is further amended by adding after subsection (p) the following new subsection: ``(q) Prospective Purchaser and Windfall Lien.-- ``(1) In general.--In any case in which there are unrecovered response costs at a facility for which an owner of the facility is not liable by reason of subsection (p), and the conditions described in paragraph (3) are met, the United States shall have a lien on the facility, or may obtain, from the appropriate responsible party or parties, a lien on other property or other assurances of payment satisfactory to the Administrator, for the unrecovered costs. ``(2) Amount; duration.--The lien-- ``(A) shall be for an amount not to exceed the increase in fair market value of the property attributable to the response action at the time of a subsequent sale or other disposition of the property; ``(B) shall arise at the time costs are first incurred by the United States with respect to a response action at the facility; ``(C) shall be subject to the requirements for notice and validity specified in subsection (l)(3); and ``(D) shall continue until the earlier of satisfaction of the lien or recovery of all response costs incurred at the facility. ``(3) Conditions.--The conditions referred to in paragraph (1) are the following: ``(A) Response action.--A response action for which there are unrecovered costs is carried out at the facility. ``(B) Fair market value.--The response action increases the fair market value of the facility above the fair market value of the facility that existed on the date that is 180 days before the response action was commenced.''. (c) Definition of Bona Fide Prospective Purchaser.--Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is further amended by adding at the end the following: ``(40) Bona fide prospective purchaser.--The term `bona fide prospective purchaser' means a person who acquires ownership of a facility after the date of enactment of this paragraph, or a tenant of such a person, who can establish each of the following by a preponderance of the evidence: ``(A) Disposal prior to acquisition.--All active disposal of hazardous substances at the facility occurred before the person acquired the facility. ``(B) Inquiry.-- ``(i) In general.--The person made all appropriate inquiry into the previous ownership and uses of the facility in accordance with generally accepted good commercial and customary standards and practices. ``(ii) Standards.--The ASTM standards described in section 107(o)(2) or the alternative standards issued or designated by the President pursuant to that section shall satisfy the requirements of this subparagraph. ``(iii) Residential property.--In the case of property in residential or other similar use at the time of purchase by a nongovernmental or noncommercial entity, a site inspection and title search that reveal no basis for further investigation shall satisfy the requirements of this subparagraph. ``(C) Notices.--The person provided all legally required notices with respect to the discovery or release of any hazardous substances at the facility. ``(D) Care.--The person exercised appropriate care with respect to hazardous substances found at the facility by taking reasonable steps to-- ``(i) stop ongoing releases; ``(ii) prevent threatened future releases of hazardous substances; and ``(iii) prevent or limit human or natural resource exposure to hazardous substances previously released into the environment. ``(E) Cooperation, assistance, and access.--The person provides full cooperation, assistance, and facility access to such persons as are authorized to conduct response actions at the facility, including the cooperation and access necessary for the installation, integrity, operation, and maintenance of any complete or partial response action at the facility. ``(F) Relationship.--The person is not liable, or is not affiliated with any other person that is potentially liable, for response costs at the facility, through any direct or indirect familial relationship, or any contractual, corporate, or financial relationship other than that created by the instruments by which title to the facility is conveyed or financed.''.
summary: Common Sense Superfund Liability Relief Act of 1997 - Amends the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to absolve of liability for response actions a person who does not impede a response action or natural resource restoration to the extent liability is based solely on arrangement, transportation, or acceptance provisions relating to disposal or treatment of hazardous substances and such activities only involved municipal solid waste or sewage sludge possessed by the person and the person is: (1) the owner, operator, or lessee of residential property; (2) a small business; or (3) a small nonprofit organization. Adds provisions related to defenses to liability of an owner of after-acquired property, to deem a person to have made (under current law, "undertaken") appropriate inquiry into the property's previous ownership and uses if the person establishes that an environmental site assessment was conducted which meets specified requirements (compliance with an American Society for Testing and Materials standard or with standards issued by the President) and the person fulfills certain responsibilities concerning information compilation, exercise of appropriate care with respect to hazardous substances at the facility, and cooperation with those conducting response actions. Absolves from liability for response actions bona fide prospective purchasers to the extent liability at a facility for a release or threat thereof is based solely on ownership or operation of a facility. Gives a lien upon a facility to the United States for unrecovered response costs in any case in which there are such unrecovered costs for which the owner is not liable by reason of this section and the facility's fair market value has increased above that which existed 180 days before the action was taken.