PROSPECTIVE PURCHASERS AND WINDFALL LIENS.

SEC. 222. PROSPECTIVE PURCHASERS AND WINDFALL LIENS. (a) Definition of Bona Fide Prospective Purchaser.—Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601) (as amended by section 211(a) of this Act) is amended by adding at the end the following: “(40) Bona fide prospective purchaser.—The term ‘bona fide prospective purchaser’ means a person (or a tenant of a person) that acquires ownership of a facility after the date of the enactment of this paragraph and that establishes each of the following by a preponderance of the evidence: “(A) Disposal prior to acquisition.—All disposal of hazardous substances at the facility occurred before the person acquired the facility. “(B) Inquiries.— “(i) In general.—The person made all appropriate inquiries into the previous ownership and uses of the facility in accordance with generally accepted good commercial and customary standards and practices in accordance with clauses (ii) and (iii).115 STAT. 2371 “(ii) Standards and practices.—The standards and practices referred to in clauses (ii) and (iv) of paragraph (35)(B) shall be considered to satisfy the requirements of this subparagraph. “(iii) Residential use.—In the case of property in residential or other similar use at the time of purchase by a nongovernmental or noncommercial entity, a facility inspection and title search that reveal no basis for further investigation shall be considered to satisfy the requirements of this subparagraph. “(C) Notices.—The person provides all legally required notices with respect to the discovery or release of any hazardous substances at the facility. “(D) Care.—The person exercises appropriate care with respect to hazardous substances found at the facility by taking reasonable steps to— “(i) stop any continuing release; “(ii) prevent any threatened future release; and “(iii) prevent or limit human, environmental, or natural resource exposure to any previously released hazardous substance. “(E) Cooperation, assistance, and access.—The person provides full cooperation, assistance, and access to persons that are authorized to conduct response actions or natural resource restoration at a vessel or facility (including the cooperation and access necessary for the installation, integrity, operation, and maintenance of any complete or partial response actions or natural resource restoration at the vessel or facility). “(F) Institutional control.—The person— “(i) is in compliance with any land use restrictions established or relied on in connection with the response action at a vessel or facility; and “(ii) does not impede the effectiveness or integrity of any institutional control employed at the vessel or facility in connection with a response action. “(G) Requests; subpoenas.—The person complies with any request for information or administrative subpoena issued by the President under this Act. “(H) No affiliation.—The person is not— “(i) potentially liable, or affiliated with any other person that is potentially liable, for response costs at a facility through— “(I) any direct or indirect familial relationship; or “(II) any contractual, corporate, or financial relationship (other than a contractual, corporate, or financial relationship that is created by the instruments by which title to the facility is conveyed or financed or by a contract for the sale of goods or services); or “(ii) the result of a reorganization of a business entity that was potentially liable.”. (b) Prospective Purchaser and Windfall Lien.—Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607) (as amended by this Act) is further amended by adding at the end the following:115 STAT. 2372 “(r) Prospective Purchaser and Windfall Lien.— “(1) Limitation on liability.—Notwithstanding subsection (a)(1), a bona fide prospective purchaser whose potential liability for a release or threatened release is based solely on the purchaser’s being considered to be an owner or operator of a facility shall not be liable as long as the bona fide prospective purchaser does not impede the performance of a response action or natural resource restoration. “(2) Lien.—If there are unrecovered response costs incurred by the United States at a facility for which an owner of the facility is not liable by reason of paragraph (1), and if each of the conditions described in paragraph (3) is met, the United States shall have a lien on the facility, or may by agreement with the owner, obtain from the owner a lien on any other property or other assurance of payment satisfactory to the Administrator, for the unrecovered response costs. “(3) Conditions.—The conditions referred to in paragraph (2) are the following: “(A) Response action.—A response action for which there are unrecovered costs of the United States 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 before the response action was initiated. “(4) Amount; duration.—A lien under paragraph (2)— “(A) shall be in an amount not to exceed the increase in fair market value of the property attributable to the response action at the time of a sale or other disposition of the property; “(B) shall arise at the time at which costs are first incurred by the United States with respect to a response action at the facility; “(C) shall be subject to the requirements of subsection (1)(3); and “(D) shall continue until the earlier of— “(i) satisfaction of the lien by sale or other means; or “(ii) notwithstanding any statute of limitations under section 113, recovery of all response costs incurred at the facility.”.