2014 -- H 8036

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LC005365

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO HEALTH AND SAFETY --INDUSTRIAL PROPERTY REMEDIATION AND

REUSE ACT

     

     Introduced By: Representatives Edwards, McNamara, Chippendale, Slater, and O'Brien

     Date Introduced: April 09, 2014

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 23-19.14-7 of the General Laws in Chapter 23-19.14 entitled

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"Industrial Property Remediation and Reuse Act" is hereby amended to read as follows:

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     23-19.14-7. Exemptions to liability. -- The following parties are not responsible parties

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and shall not be held liable for costs or damages associated with a release of hazardous material

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and/or petroleum:

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      (1) Persons otherwise liable who can establish by a preponderance of the evidence that

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the release or threat of release of a hazardous substance and the damages resulting from that

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release or threat of release were caused solely by an act of God or an act of war;

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      (2) Bona fide prospective purchasers who have received:

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      (i) A remedial decision letter and are actively engaged in implementing the remedial

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action approved therein; provided, that the remedial action is being diligently pursued to

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completion in accordance with approved work schedules; or

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      (ii) A letter of compliance confirming successful completion of a remedial action

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approved by the department; or

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      (iii) An enforceable settlement agreement under section 23-19.14-10.; or

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     (iv) Correspondence from the department acknowledging that the person (or a tenant of a

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person) acquired ownership of a facility after January 11, 2002 and that the person has certified to

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each of the following criteria:

 

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     (A) All disposal at the facility took place before the person acquired the facility;

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     (B) The person made "all appropriate inquiry" into the prior uses and ownership of the

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facility in accordance with generally accepted good commercial and customary standards and

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practices;

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     (C) The person will provide all legally required notices for any discovery or release of

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hazardous substances at the facility;

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     (D) The person will exercise appropriate care to stop ongoing releases, prevent threatened

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future releases and prevent or limit human, environmental or natural resource exposure to any

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previously released hazardous substance;

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     (E) The person will provide cooperation, assistance and access to those performing

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remedial work at a facility:

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     (F) The person will comply with and will not impede the effectiveness or integrity of any

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institutional controls at a facility; and

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     (G) The person has no affiliation with any responsible party and was not created through

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a reorganization of a business entity that was a responsible party.

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      (3) Persons who maintain an indicia of ownership solely to protect a secured interest in

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land and are not operators;

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      (4) Persons who are not operators and who act solely as custodial receivers or who can

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establish by a preponderance of evidence that they are an innocent landowner and the release or

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threat of release were caused solely by an act or omission of a third party other than an employer

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or agent of the defendant, or whose act or omission occurs in connection with a contractual

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relationship, existing directly or indirectly, with the defendant if the defendant establishes:

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      (i) He or she exercised due diligence in the acquisition of the site at the time of purchase

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and exercised due care with respect to the hazardous material and/or petroleum concerned, taking

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into consideration the characteristics of the hazardous material, in light of the facts and

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circumstances; and

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      (ii) He or she took precautions against foreseeable acts, or omissions of any third party

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and the consequences that could foreseeably result from those acts or omissions;

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      (5) A unit of state or local government which acquired ownership or control

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involuntarily through bankruptcy, tax delinquency, abandonment or other circumstances in which

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the government involuntarily acquires title by virtue of its function as sovereign; provided,

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however, that the unit of state or local government did not cause or contribute to the release or

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threatened release of a hazardous material at the site; and

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      (6) (i) A person that owns real property that is contiguous to or otherwise similarly

 

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situated with respect to, and that is or may be contaminated by a release or threatened release of a

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hazardous material from, real property that is not owned by that person shall not be considered to

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be a responsible party for the site solely by reason of the contamination if:

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      (A) The person did not cause, contribute, or consent to the release or threatened release;

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      (B) The person is not:

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      (I) Potentially liable, or affiliated with any other person that is potentially liable, for

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response costs at the site through any direct or indirect familial relationship or any contractual,

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corporate, or financial relationship (other than a contractual, corporate, or financial relationship

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that is created by a contract for the sale of goods or services); or

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      (II) The result of a reorganization of a business entity that was potentially liable;

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      (C) The person takes reasonable steps to:

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      (I) Stop any continuing release;

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      (II) Prevent any threatened future release; and

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      (III) Prevent or limit human, environmental, or natural resource exposure to any

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hazardous substance released on or from property owned by that person;

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      (D) The person provides full cooperation, assistance, and access to persons that are

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authorized to conduct response actions or natural resource restoration at the site from which there

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has been a release or threatened release (including the cooperation and access necessary for the

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installation, integrity, operation, and maintenance of any complete or partial response action or

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natural resource restoration at the site);

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      (E) The person:

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      (I) Is in compliance with any land use restrictions established or relied on in connection

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with the response action at the site; and

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      (II) Does not impede the effectiveness or integrity of any institutional control employed

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in connection with a response action; and

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      (F) The person provides all legally required notices with respect to the discovery or

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release of any hazardous substances at the facility.

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      (ii) To qualify as a person described in this subdivision, a person must establish by a

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preponderance of the evidence that the conditions in subparagraphs (i)(A) through (i)(F) of this

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subdivision have been met.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY --INDUSTRIAL PROPERTY REMEDIATION AND

REUSE ACT

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     This act would provide an exemption for certain so-called "innocent tenants" and

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property owners of industrial property from liability for costs or damages associated with a

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release of hazardous materials or petroleum from the property. The innocent tenant or property

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owner would need to meet certain requirements in order to qualify for this exemption.

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     This act would take effect upon passage.

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LC005365

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