INDEMNIFICATION OF TRANSFEREES OF CLOSING DEFENSE PROPERTY.

SEC. 330. [10 U.S.C. 2687 note] INDEMNIFICATION OF TRANSFEREES OF CLOSING DEFENSE PROPERTY. (a) In General.—(1) Except as provided in paragraph (3) and subject to subsection (b), the Secretary of Defense shall hold harmless, defend, and indemnify in full the persons and entities described in paragraph (2) from and against any suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage (including death, illness, or loss of or damage to property or economic loss) that results from, or is in any manner predicated upon, the release or threatened release of any hazardous substance, pollutant or contaminant, or petroleum or petroleum derivative as a result of Department of Defense activities at any military installation (or portion thereof) that is closed pursuant to a base closure law. (2) The persons and entities described in this paragraph are the following: (A) Any State (including any officer, agent, or employee of the State) that acquires ownership or control of any facility at a military installation (or any portion thereof) described in paragraph (1). (B) Any political subdivision of a State (including any officer, agent, or employee of the State) that acquires such ownership or control. (C) Any other person or entity that acquires such ownership or control. (D) Any successor, assignee, transferee, lender, or lessee of a person or entity described in subparagraphs (A) through (C). (3) To the extent the persons and entities described in paragraph (2) contributed to any such release or threatened release, paragraph (1) shall not apply. (b) Conditions.—No indemnification may be afforded under this section unless the person or entity making a claim for indemnification— (1) notifies the Department of Defense in writing within two years after such claim accrues or begins action within six months after the date of mailing, by certified or registered mail, of notice of final denial of the claim by the Department of Defense; (2) furnishes to the Department of Defense copies of pertinent papers the entity receives; (3) furnishes evidence or proof of any claim, loss, or damage covered by this section; and (4) provides, upon request by the Department of Defense, access to the records and personnel of the entity for purposes of defending or settling the claim or action. (c) Authority of Secretary of Defense.—(1) In any case in which the Secretary of Defense determines that the Department of Defense may be required to make indemnification payments to a person under this section for any suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage referred to in subsection (a)(1), the Secretary may settle or defend, on behalf of that person, the claim for personal injury or property damage. (2) In any case described in paragraph (1), if the person to whom the Department of Defense may be required to make indemnification payments does not allow the Secretary to settle or defend the claim, the person may not be afforded indemnification with respect to that claim under this section. (d) Accrual of Action.—For purposes of subsection (b)(1), the date on which a claim accrues is the date on which the plaintiff knew (or reasonably should have known) that the personal injury or property damage referred to in subsection (a) was caused or contributed to by the release or threatened release of a hazardous substance, pollutant or contaminant, or petroleum or petroleum derivative as a result of Department of Defense activities at any military installation (or portion thereof) described in subsection (a)(1). (e) Relationship to Other Law.—Nothing in this section shall be construed as affecting or modifying in any way section 120(h) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)). (f) Definitions.—In this section: (1) The terms “facility”, “hazardous substance”, “release”, and “pollutant or contaminant” have the meanings given such terms under paragraphs (9), (14), (22), and (33) of section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, respectively (42 U.S.C. 9601 (9), (14), (22), and (33)). (2) The term “military installation” has the meaning given such term under section 2687(e)(1) of title 10, United States Code. (3) The term “base closure law” means the following: (A) The Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note). (B) Title II of the Defense Authorization Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 note). (C) Section 2687 of title 10, United States Code. (D) Any provision of law authorizing the closure or realignment of a military installation enacted on or after the date of the enactment of this Act[Oct. 23, 1992.]