Comprehensive Environmental Response Cleanup and Liability Act (CERCLA)

• Pages: 209-211

Page 209

The Comprehensive Environmental Response Cleanup and Liability Act (CERCLA), better known to the general public as the Superfund program, was passed by Congress on December 11, 1980. Under CERCLA, the Environmental Protection Agency (EPA) was given the authority to respond directly to the release or threatened release of hazardous substances onto sites which could endanger the public health or the environment. Superfund established requirements regarding these-contaminated sites as well as the liability of individuals and businesses responsible for the site contamination. In order to pay for the environmental cleanup of abandoned or uncontrolled hazardous waste sites, the government began taxing chemical and petroleum industries over a period of five years. The resulting $1.6 billion created a trust fund or Superfund to pay for these cleanups.

Later legislation, such as the Superfund Amendments and Reauthorization Act (SARA) in 1986, underlined the need for permanent and creative solutions in cleaning up hazardous waste sites by providing methods for settlement between responsible parties and the government. SARA also ensured CERCLA was in line with other federal and state environmental legal standards and requirements and increased state involvement in the Superfund program. It revised the Hazards Ranking System in order to ensure it focused on the human health issues associated with the sites. Finally, SARA brought another $8.5 billion into the fund for cleanup. Additional funds have been appropriated since.

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There have been some legislative attempts at reducing or eliminating the liability of small businesses under CERCLA. In 2002, President George W. Bush signed into law the Small Business Liability Relief and Brownfield Revitalization Act which modified CERCLA.

However, in the wake of expensive cleanup efforts and increased environmental legislation, most large companies have dramatically improved their operations in order to avoid future remedial action. Unfortunately, the EPA has found that many small businesses tend to be among the most egregious polluters.

POTENTIALLY RESPONSIBLE PARTIES (PRPs)

Liability for contamination under CERCLA extends to a number of individuals or groups it terms "potentially responsible parties" (PRPs). These include the current owner or operator of the site; previous owners or operators of the site during the time of contamination or after it; companies or individuals handling the waste disposal or transportation; and other parties connected to the sale or lease of the property such as title companies or real estate agents.

The impact of this legislation for the small business owner can be devastating. Essentially, if a site is found to be...