Revival of superfund reform bill seen in House.

WASHINGTON -- A compromise Superfund reform bill, supported by the banking industry, is expected to be marked up by a House subcommittee next week.

"Everyone has to be encouraged that there's a real chance to pass Superfund this year," said Edward L. Yingling, chief lobbyist for the American Bankers Association.

Limit on Lender Liability

Mr. Yingling attended a White House meeting Tuesday at which Environmental Protection Agency administrator Carol Browner presented the administration's plan.

Banks support the Superfund proposal because it would limit lenders' liability for cleaning up toxic sites. The compromise legislation protects lenders as long as they do not participate in managing a polluted site.

The bill defines "management" as having decision-making control. However, banks would still be able to police their loans, insuring collateral is maintained, so long as they didn't take over operation of the site.

Liability protections were wiped out Feb. 4 when a federal appeals court overturned an EPA rule laying out how banks can avoid liability.

Indefinite Postponement

The legislation appeared stalled in April when Rep. Al Swift, D-Wash., chairman of the House Energy and Commerce subcommittee on transportation and hazardous materials, postponed a vote indefinitely.

But various interest groups' support for the reform brought the issue back to the table.

Sen. Frank Lautenberg, D-N.J., chairman of the Senate Environment and Public Works subcommittee, also is expected to push for passage.

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