CHAPTER........
AN ACT relating to hazardous materials; providing incentives for the voluntary removal or
rendering harmless of environmental contamination; and providing other matters
properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 459 of NRS is hereby amended by adding thereto
the provisions set forth as sections 2 to 23, inclusive, of this act.
Sec. 2.
As used in sections 2 to 23, inclusive, of this act, unless thecontext otherwise requires, the words and terms defined in sections 3 to
11, inclusive, of this act have the meanings ascribed to them in those
sections.
Sec. 3.
"Administrator" means the administrator of the division.Sec. 3.5.
"Commission" means the state environmental commission.Sec. 4.
"Division" means the division of environmental protection ofthe state department of conservation and natural resources.
Sec. 5.
"Eligible property" means real property located in this statethat:
1. Except as otherwise provided in section 11.5 of this act, is not:
(a) Listed, proposed for listing or eligible for listing on the National
Priorities List contained in Appendix B of Part 300 of Title 40 of the
Code of Federal Regulations; and
(b) Owned, managed or controlled by a person or governmental entity
subject to a pending investigation or ongoing enforcement action of the
Federal Government pursuant to the Federal Resource Conservation and
Recovery Act, 42 U.S.C. §§ 6901 et seq., or the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§
9601 et seq.;
2. Is not owned, managed or controlled by a person or governmental
entity subject to a pending investigation or ongoing enforcement action
of the division with respect to that real property; and
3. Contains the site or probable site of a release of a hazardous
substance.
Sec. 6.
"Hazardous substance" means a substance or combinationof substances whose presence gives rise to liability or potential liability on
the part of an owner or operator pursuant to NRS 459.537 or 42 U.S.C. §
9607(a).
Sec. 7.
"Participant" means a person whose application toparticipate in the program has been approved by the administrator.
Sec. 8.
"Program" means voluntary cleanup and relief from liabilitypursuant to sections 2 to 23, inclusive, of this act.
Sec. 9.
"Prospective purchaser" means a person who is not aresponsible party and who has entered into a contract, or holds an
option, to purchase an eligible property for its fair market value in a
transaction at arm’s length.
Sec. 10.
"Remedial agreement" means an agreement between aparticipant and the division specifying the action to be taken to remove or
remedy hazardous substances present on an eligible property.
Sec. 11.
"Responsible party" means:1. A current or former owner or operator of a site or facility who
caused or contributed to the release of a hazardous substance at the site
or facility; and
2. A generator or transporter of a hazardous substance who caused
or contributed to the release of the hazardous substance at a site or
facility.
Sec. 11.5. Real property located in this state that is listed, proposed
for listing or eligible for listing on the National Priorities List contained
in Appendix B of Part 300 of Title 40 of the Code of Federal Regulations
or that is owned, managed or controlled by a person or governmental
entity subject to a pending investigation or ongoing enforcement action
by the Federal Government pursuant to the Federal Resource
Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., or the
Comprehensive Environmental Response, Compensation, and Liability
Act, 42 U.S.C. §§ 9601 et seq., shall be deemed to be eligible property if:
1. The property satisfies the elements of the definition of eligible
property set forth in subsections 2 and 3 of section 5 of this act; and
2. The reason for which the property was listed or is proposed or
eligible for listing on the National Priorities List or for the investigation
or enforcement action by the Federal Government is unrelated to the
hazardous substance that a participant intends to remove from or
remediate on the property pursuant to a remedial agreement submitted
pursuant to section 13 of this act.
Sec. 12.
1. A responsible party with respect to an eligible property,or a prospective purchaser of an eligible property may apply to
participate in the program. The application must be made to the
administrator in writing and must include:
(a) An environmental assessment of the property, including the
source, nature and location of all hazardous substances known to, or
reasonably believed by, the applicant to be located on the property;
(b) A proposed general plan for removal or remediation on the
property; and
(c) The application fee and any other information required pursuant
to the regulations adopted by the commission pursuant to section 22.5 of
this act.
2. The administrator shall approve or deny an application made
pursuant to subsection 1 within 60 days after its submission, unless for
good cause he extends the period for not more than an additional 30
days. Notice of an extension must be delivered to the applicant before the
expiration of the original period for processing the application.
3. If the administrator denies an application, he shall deliver to the
applicant, within 30 days after the denial, a written explanation of the
reasons for denial.
Sec. 13.
1. After an application is approved, the participant shallsubmit a remedial agreement to the administrator for his approval.
2. The administrator shall approve a remedial agreement only if:
(a) The agreement:
(1) Provides for the recovery by the division of all direct and
indirect costs, in excess of the application fee, of overseeing and
supervising the removal or remediation of the hazardous substance or
substances on the property;
(2) Specifies the substance to be removed from or remediated on the
property, the actions to be taken and the standards to be met with respect
to removal or remediation, and the uses for which the property will not
be suitable after the removal or remediation is carried out; and
(3) Includes a grant to the administrator of an irrevocable easement
or right of entry onto the property to oversee and observe the work during
and after the removal or remediation;
(b) The removal or remediation of the hazardous substance or
substances will:
(1) Restore the property to the condition to which it would be
restored if the division caused action to be taken pursuant to NRS
459.537;
(2) Not cause, contribute to or worsen any release or threatened
release of a hazardous substance on the property;
(3) Adequately protect human health and the environment; and
(4) Comply with any applicable regulations adopted by the
commission pursuant to section 22.5 of this act; and
(c) The participant is financially capable of undertaking the removal
or remediation of the hazardous substance or substances.
3. If the participant is not the owner of the property, the
administrator shall not approve a remedial agreement unless the owner
first agrees to the terms of the agreement.
4. Before approving a remedial agreement, the administrator shall:
(a) Publish a notice and brief summary of the agreement in a
newspaper of general circulation in the county where the property is
located;
(b) Make reasonable efforts to provide personal notice to all
responsible parties known to him and to all owners and residents of
property within 500 yards of the outer boundary of the property on which
the work is to be performed;
(c) Provide 30 days for the submission of written comments; and
(d) Hold a public hearing in the county where the property is located
5. If the administrator disapproves a proposed remedial agreement,
he shall deliver to the participant, within 30 days after the disapproval, a
written explanation of the reasons for the disapproval.
Sec. 14.
1. After a participant has completed the action specified inhis remedial agreement for the removal or remediation of hazardous
substances, the participant shall certify to the administrator that the
action has been completed according to the agreement. After the
administrator has verified the certification, he shall issue the participant
a certificate of completion.
2. A certificate of completion must:
(a) Contain the name of the participant and of any other person
relieved from liability by the certificate and the legal description of the
property to which it relates;
(b) Summarize the nature of the removal or remediation performed on
the property, and the nature of the relief provided by sections 2 to 23,
inclusive, of this act; and
(c) Be recorded by the administrator in the office of the county
recorder of the county where the real property is located, and indexed to
show its relation to that real property.
3. If the administrator does not issue a certificate of completion after
receiving the participant’s certification that the work has been completed,
he shall deliver to the participant, within 30 days after his receipt of the
certificate, a written explanation of the reasons why the certificate was
not issued.
Sec. 15.
1. Except as otherwise provided in section 16 of this act,the holder of a certificate of completion issued by the administrator is not
a responsible party with respect to a release of a hazardous substance
occurring on the property to which the certificate relates before the
certificate was issued. The state may not maintain an action pursuant to
federal law or NRS 459.537 to recover costs from the holder with respect
to such a release.
2. The relief from liability provided by a certificate of completion
remains effective despite a subsequent change in state or federal law.
Sec. 16.
The holder of a certificate of completion is not releasedfrom liability:
1. If he obtained approval of his application, approval of his
remedial agreement or issuance of the certificate by means of fraud,
misrepresentation or a knowing failure to disclose material information;
2. If the existence of the hazardous substance on the property was
not disclosed in his remedial agreement, whether or not he knew or
should have known of its existence;
3. With respect to a release of a hazardous substance caused by him
or his agent, unless the release is remedied before the certificate of
completion is issued and is included in the certificate of completion;
4. In a criminal prosecution or an action for damage to a natural
5. In an action for nuisance at common law, for trespass or for the
conduct of an abnormally dangerous activity;
6. With respect to a use of the property for which the property is no
longer suitable after the removal or remediation has been carried out, as
identified pursuant to subparagraph (2) of paragraph (a) of subsection 2
of section 13 of this act; or
7. For a release of any hazardous substance not specified in the
remedial agreement.
Sec. 17.
1. The relief from liability provided by section 15 of thisact extends to another person who:
(a) Purchases or leases the property to which the certificate of
completion relates; or
(b) Acquires, merges with or purchases substantially all of the assets
of the holder of the certificate,
after the certificate is issued, if the other person is not otherwise a
responsible party. The other person is subject to any duties of the original
holder of the certificate under the remedial agreement or the certificate.
2. The relief provided to a subsequent owner or lessee continues even
if it is determined that the original holder of the certificate is not released
from liability because of a provision of section 16 of this act if:
(a) The subsequent owner or lessee purchased or leased the property
in good faith for its fair market value; and
(b) The actions of the original holder of the certificate cannot be
attributed to the subsequent owner or lessee under a provision of law
other than this chapter.
3. If the original holder of a certificate of completion is a prospective
purchaser, the relief from liability provided by section 15 of this act
extends to the person from whom he purchases the property if:
(a) The seller and purchaser so agree;
(b) The seller bears the expense of removal or remediation performed
on the property, directly or indirectly;
(c) The seller is a responsible party only because of his ownership of
the property; and
(d) The administrator approves the extension of relief and
incorporates it into the certificate of completion.
Sec. 18.
1. A person who, without participating in the managementof a parcel of real property, holds or is the beneficiary of evidence of title
to the property primarily to protect a security interest in the property is
not a responsible party with respect to a release of a hazardous substance
on the property if:
(a) The owner of the property is relieved from liability under sections
2 to 23, inclusive, of this act with respect to the release;
(b) The owner or holder of evidence of title did not cause the release;
and
(c) The owner or holder of evidence of title does not participate
actively in decisions concerning hazardous substances on the property.
2. A lender to a prospective purchaser who has filed an application
to participate in the program pursuant to section 12 of this act or a
lender who forecloses his security interest in property pursuant to NRS
40.430 to 40.450, inclusive, or 107.080 to 107.100, inclusive, and within a
reasonable period after the foreclosure, not to exceed 2 years, sells,
transfers or conveys the property to a prospective purchaser who has filed
an application to participate in the program pursuant to section 12 of this
act is not a responsible party solely as a result of:
(a) Foreclosing a security interest in the property; or
(b) Making a loan to the prospective purchaser if the loan:
(1) Is to be used for acquiring property or removing or remediating
hazardous substances on property; and
(2) Is secured by the property that is to be acquired or on which is
located the hazardous substances that are to be removed or remediated.
Sec. 19.
A prospective purchaser is not a responsible party solely asthe result of:
1. Conducting an environmental assessment of real property;
2. Contracting to purchase, or acquiring an option to purchase, real
property;
3. Applying to participate in a program; or
4. Conducting or supervising removal or remediation of a hazardous
substance or substances, while exercising reasonable care, pursuant to
an approved remedial agreement.
Sec. 20.
1. The holder of a certificate of completion may maintainan action against a responsible party to recover the holder’s costs of
performing removal or remediation of a hazardous substance or
substances pursuant to a program.
2. If the holder is a prospective purchaser and his seller qualifies for
relief from liability pursuant to section 17 of this act, the seller may
maintain an action against a responsible party to recover the seller’s
costs of performing removal or remediation of a hazardous substance or
substances pursuant to a program.
Sec. 21.
1. A participant may terminate his participation in aprogram upon 30 days’ written notice to the administrator.
2. The administrator may terminate the participation of a participant
in a program only if:
(a) The participant, after a reasonable period, has not proposed and is
unlikely to be able to propose a remedial agreement that meets the
requirements of section 13 of this act;
(b) The participant fails materially to comply with the requirements of
the remedial agreement or sections 2 to 23, inclusive, of this act; or
(c) From information not known to the administrator when the
remedial agreement was approved, he determines that the removal or
remediation in progress or to be performed on the property poses an
imminent and substantial threat of harm to human health or the
3. An application, remedial agreement or certificate of completion is
not an admission of liability on the part of the applicant or participant,
but a termination of participation does not otherwise affect the rights of
the division.
Sec. 22.
1. A decision of the administrator to approve anapplication or a remedial agreement or to issue a certificate of
completion is final and may not be reviewed.
2. If the administrator denies an application for any reason other
than incompleteness, disapproves a proposed remedial agreement, does
not issue a certificate of completion within the time allowed or terminates
the participation of a participant in a program, the applicant or
participant may apply to the commission to review the decision pursuant
to chapter 233B of NRS.
Sec. 22.5.
The commission shall adopt such regulations as thecommission determines are necessary to carry out the provisions of
sections 2 to 23, inclusive, of this act. Regulations adopted pursuant to
this section:
1. Must include, without limitation, provisions relating to the:
(a) Duties and functions of consultants who are certified, or exempt
from the requirement of certification, as provided by NRS 459.500;
(b) Financial capability and responsibility required of a participant;
and
(c) Required form and content of and any fee required to be submitted
with an application, certificate or remedial agreement.
2. May include, without limitation, provisions relating to the
issuance of a temporary, interim or partial certificate of completion or
progress with respect to a remedial agreement.
Sec. 23.
The administrator shall make a good faith effort tonegotiate with the Environmental Protection Agency to ensure that a
certificate of completion issued pursuant to sections 2 to 23, inclusive, of
this act will relieve a participant from liability to the United States to the
same extent as those sections provide relief from liability to this state.
Sec. 23.5. NRS 459.530 is hereby amended to read as follows:
2. The state treasurer shall account separately for each of the fees
collected pursuant to NRS 459.512.
Sec. 24. NRS 459.537 is hereby amended to read as follows:
Sec. 25. 1. This section and sections 1, 22.5 and 23 of this act
become effective upon passage and approval.
2. Sections 2 to 22, inclusive, 23.5 and 24 of this act become effective
on October 1, 1999.
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