11
• Complying with land use restrictions and not impeding the effectiveness or integrity of
institutional controls (discussed further in Paragraph V.C. below);
• Exercising appropriate care by taking “reasonable steps” to prevent the release of
hazardous substances. These obligations are site-specific but may include stopping
continuing releases, preventing threatened future releases, and/or limiting exposure to
earlier hazardous substance releases. Institutional controls may play a critical role in
complying with reasonable steps;
• Providing full cooperation, assistance, and access to persons authorized to conduct
response actions or natural resource restoration;
• Complying with information requests and administrative subpoenas; and
• Providing legally required notices.
To remain protected from CERCLA liability for the existing contamination while it owns the
property, a local government must maintain its BFPP status for as long as the potential for
liability exists. Potential liability depends on the site-specific factors including the nature and
extent of the hazardous substances, the potential for exposure leading to unacceptable human
health and/or ecological risk, and the nature and timing of any response action that the EPA or
other parties have performed or may perform in the future. Also, it is important to note that a
local government may become liable for any disposals after acquisition.
18
BFPPs that continue to meet the criteria in CERCLA §§ 101(40) and 107(r) are not liable as
owners or operators for CERCLA response costs, but the property they acquire may be subject to
a windfall lien when an EPA response action has increased the fair market value of the
property.
19
The United States, after spending taxpayer money for cleanup at a property, may
place a windfall lien on the property for the lesser of the unrecovered response costs or the
increase in fair market value at the property attributable to the Superfund cleanup.
20
Consistent with the discussion above in Paragraph IV.A.2.b., the EPA generally intends to
exercise its enforcement discretion regarding certain intergovernmental transfers of property. If a
government entity transferring a property has fulfilled the requirements to achieve and maintain
BFPP status pursuant to CERCLA §§ 101(40) and 107(r), the EPA generally intends to treat the
18
See Common Elements Guidance, supra note 10, at 8.
19
CERCLA contains two sections under which federal liens arise. This document only discusses windfall liens
under CERCLA § 107(r), 42 U.S.C. § 9607(r), and does not discuss liens for unrecovered response costs under
CERCLA § 107(l), 42 U.S.C. § 9607(l). For more information on CERCLA § 107(l) liens, please see Use of Federal
Superfund Liens to Secure Response Costs (May 8, 2002), available on the Agency’s website at:
https://www.epa.gov/enforcement/guidance-using-federal-superfund-liens-secure-response-costs.
20
The windfall lien provision is found in CERCLA § 107(r), 42 U.S.C. § 9607(r). The EPA anticipates that there
may be situations where a site has a windfall lien and a BFPP wants to satisfy any existing or potential windfall lien
before or close to the time of acquisition. The EPA and the Department of Justice jointly issued the Interim
Enforcement Discretion Policy Concerning “Windfall Liens” Under Section 107(r) of CERCLA (July 16, 2003),
available at
https://www.epa.gov/enforcement/interim-guidance-enforcement-discretion-concerning-windfall-liens-
cercla-section-107r which includes a model agreement to facilitate resolution of windfall liens. The policy also
provides guidance on how the EPA intends to perfect specific windfall liens and when the EPA may or may not seek
to foreclose on windfall liens.