Skip Gibson memo, February 8, 2002

Memo To: From: Subject: Date: RLE, SLK Skip Gibson HR 2869: Small Business Liability Relief Act & Brownfields Revitalization Act P.L. 107-118 February 8, 2002 TITLE I: HR 1831, the “Superfund Small Business Liability Relief Act" • DEMICROMIS EXEMPTION: This bill exempts an individual or business from the costs associated with cleanup at a Superfund site if that individual or business disposed of less than 110 gallons of non-hazardous liquid or less than 200 pounds of non-hazardous solid material before April 1 , 2000. • MUNICIPAL SOLID WASTE (MSW) EXEMPTION: The bill exempts a small business from liability under Superfund if their garbage is essentially the same as typical household trash. Examples of MSW are paper, clothing, food and yard wastes. • BURDEN OF PROOF: For MSW and the DeMicromis Exemption, the burden of proof is on the large business trying to recover the cleanup funding from a small business. If, however, a government entity is suing for cleanup cost recovery, then the burden is on the small business. • COST AND FEES: If a large business sues a small business for cost recovery and loses then the large business is obligated to pay attorney’s fees for the small business’s defense. • EXPEDITED SETTLEMENT (ABILITY TO PAY): The bill allows the EPA to settle a cleanup claim with a small business for a lesser amount if the business can show a financial inability to pay for the cleanup. TITLE II: S 350, Federal Brownfields Reform • Allows EPA to provide grants and loans to various eligible parties to encourage and promote brownfields cleanups. • Authorizes appropriations up to $200 million per year for five years to assess and clean up certain abandoned industrial sites, known as brownfields. The authorization is split as follows. - $50 million dedicated (or 25% of the amount appropriated if less than the fully authorized amount) for assessment and remediation of low-risk sites contaminated with petroleum products. - Characterization grants, for assessment costs, may be up to $200,000. - Remediation grants may be up to $ I million. • Provides liability protections from Superfund for innocent landowners, contiguous property owners and bona fide prospective purchasers.