Arizona Laws 49-283. Responsible party liability exemptions; definitions
A. For purposes of imposing liability under this article, and except as provided in this section, a person is deemed the party responsible for the release or threatened release of a hazardous substance if the person:
Terms Used In Arizona Laws 49-283
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Administrator: means the administrator of the United States environmental protection agency. See Arizona Laws 49-201
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- CERCLA: means the comprehensive environmental response, compensation, and liability act of 1980, as amended (P. See Arizona Laws 49-201
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Department: means the department of environmental quality. See Arizona Laws 49-201
- Director: means the director of environmental quality or the director's designee. See Arizona Laws 49-201
- Environment: means WOTUS, any other surface waters, groundwater, drinking water supply, land surface or subsurface strata or ambient air, within or bordering on this state. See Arizona Laws 49-201
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Executor: A male person named in a will to carry out the decedent
- Facility: means any land, building, installation, structure, equipment, device, conveyance, area, source, activity or practice. See Arizona Laws 49-281
- Fiduciary: A trustee, executor, or administrator.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Fund: means the water quality assurance revolving fund established by section 49-282. See Arizona Laws 49-281
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Hazardous substance: means :
(a) Any substance designated pursuant to sections 311(b)(2)(A) and 307(a) of the clean water act. See Arizona Laws 49-201
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Permit: means a written authorization issued by the director or prescribed by this chapter or in a rule adopted under this chapter stating the conditions and restrictions governing a discharge or governing the construction, operation or modification of a facility. See Arizona Laws 49-201
- Person: means an individual, employee, officer, managing body, trust, firm, joint stock company, consortium, public or private corporation, including a government corporation, partnership, association or state, a political subdivision of this state, a commission, the United States government or any federal facility, interstate body or other entity. See Arizona Laws 49-201
- Property: includes both real and personal property. See Arizona Laws 1-215
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Release: means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment but excludes:
(a) Any release that results in exposure to persons solely within a workplace, with respect to a claim that such persons may assert against the employer of such persons. See Arizona Laws 49-281
- Remedial actions: means those actions that are reasonable, necessary, cost-effective and technically feasible in the event of the release or threat of release of hazardous substances into the environment, such actions as may be necessary to investigate, monitor, assess and evaluate such release or threat of release, actions of remediation, removal or disposal of hazardous substances or taking such other actions as may be necessary to prevent, minimize or mitigate damage to the public health or welfare or to the environment that may otherwise result from a release or threat of release of a hazardous substance. See Arizona Laws 49-281
- Standards: means water quality standards, pretreatment standards and toxicity standards established pursuant to this chapter. See Arizona Laws 49-201
- Trustee: A person or institution holding and administering property in trust.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. Owned or operated the facility:
(a) When the hazardous substance was placed or came to be located in or on the facility.
(b) When the hazardous substance was located in or on the facility but before the release.
(c) During the time of the release or threatened release.
2. Owned or possessed the hazardous substance and arranged, by contract, agreement or otherwise, for the disposal, treatment or transport for disposal or treatment of the hazardous substance.
3. Accepted for transport to a disposal or treatment facility waste that contained a hazardous substance and either selected the facility to which it was transported or disposed of it in a manner contrary to law.
B. Notwithstanding the provisions of subsection A, a person that owns real property is not a responsible party if there is a release or threatened release of a hazardous substance from a facility in or on the property unless one or more of the following applies to that person:
1. Was engaged in the business of generating, transporting, storing, treating or disposing of a hazardous substance at the facility or disposing of waste at the facility, or knowingly permitted others to engage in such a business at the facility.
2. Permitted any person to use the facility for disposal of a hazardous substance.
3. Knew or reasonably should have known that a hazardous substance was located in or on the facility at the time right, title or interest in the property was first acquired by the person and engaged in conduct by which he associated himself with the release. For the purpose of this paragraph, a written warranty, representation or undertaking, which is set forth in an instrument conveying any right, title or interest in the real property and which is executed by the person conveying the right, title or interest, or which is set forth in any memorandum of any such instrument executed for the purpose of recording, is admissible as evidence of whether the person acquiring any right, title or interest in the real property knew or reasonably should have known that a hazardous substance was located in or on the facility. For purposes of this paragraph, "associated himself with the release" means having actual knowledge of the release and taking action or failing to take action that the person is authorized to take and that increases the volume or toxicity of the hazardous substance that has been released.
4. Took action which significantly contributed to the release after he knew or reasonably should have known that a hazardous substance was located in or on the facility.
C. Any liability which accrues to an owner of real property under this section does not accrue to any other person who is not an owner of the real property merely because the other person holds some right, title or interest in the real property. An owner of real property on which a public utility easement is located is not a responsible party with respect to any release caused by any act or omission of the public utility which holds the easement in carrying out the specific use for which the easement was granted.
D. A person otherwise deemed a responsible party is not liable under this article if he can establish by a preponderance of the evidence that the release or threat of release of a hazardous substance and the resulting damages were caused solely by:
1. An act of God.
2. An act of war.
3. An act or omission of a third party, whether lawful or unlawful including acts of vandalism or unlawful disposal of hazardous waste or hazardous substances, other than an employee or agent of that person or other than one whose act or omission occurs in connection with a contractual relationship, existing directly or indirectly, with that person, unless the sole contractual arrangement arises from a published tariff and acceptance for carriage by a common carrier by rail, if that person establishes by a preponderance of the evidence that:
(a) He exercised due care with respect to the hazardous substance concerned, taking into consideration the characteristics of the hazardous substance in light of all relevant facts and circumstances.
(b) He took precautions against foreseeable acts or omissions of any such third party and the consequences that could foreseeably result from such acts or omissions.
4. A release or threatened release which was subject to limits or conditions in a federal permit or a state permit relating to the protection of public health or the environment and the operation of the releasing facility has been and is in compliance with applicable limits or conditions.
5. The application of a pesticide product registered under the federal insecticide, fungicide, and rodenticide act (61 Stat. 163) and applied according to label requirements.
6. Liability has been assumed by the federal postclosure liability fund established under 42 United States Code § 9607(k).
7. Any combination of paragraphs 1 through 6 of this subsection.
E. A person is not a responsible party with respect to a hazardous substance that is located on or beneath property that is owned or occupied by that person if the hazardous substance is present solely because it migrated from property that is not owned or occupied by that person and that person is not otherwise a responsible party as prescribed by subsection A, paragraph 2 or 3.
F. A person is not liable for costs or damages incurred solely as a result of an action taken or omitted while rendering care, assistance or advice that is consistent with rules adopted by the director, is consistent with the national contingency plan or is under the direction of an on-scene coordinator appointed pursuant to the national contingency plan and that is rendered with respect to a release or a threat of a release of a hazardous substance that creates a danger to public health or the environment. This subsection does not preclude liability for costs or damages that result from that person’s negligence.
G. A state or local government and its employees or authorized representatives are not liable for costs or damages incurred as a result of an action taken in response to an emergency created by the release or threatened release of a hazardous substance that is generated by or from a facility owned by another person. This subsection does not preclude liability for costs or damages that result from gross negligence or intentional misconduct by this state or local government. For purposes of this subsection, reckless, willful or wanton misconduct constitutes gross negligence.
H. A person who maintains indicia of ownership in a property primarily to protect a security interest in a facility and who does not participate in the management of the facility is not liable as an owner or operator of that facility pursuant to this section. This subsection does not apply to a person who does any of the following:
1. Through intentional misconduct or gross negligence causes, contributes to or aggravates the release of a hazardous substance.
2. Fails to disclose to the facility’s purchaser the known presence of a release or a threatened release of a hazardous substance at the time of sale or divestiture of the facility or the security interest in the facility.
3. Fails to obtain a phase I environmental assessment of the facility that complies with standards adopted by rule pursuant to subsection K of this section at the time of or at a reasonable time before foreclosure. This paragraph does not apply to residential properties with fewer than five residential units.
4. Fails to do any of the following after acquiring ownership of the facility:
(a) Provide the department reasonable access so that the necessary remedial actions may be conducted.
(b) Undertake reasonable steps to control access to the area of known presence of a release of a hazardous substance to protect the public health and welfare and the environment.
(c) Act diligently to sell or otherwise divest the property within two years of the lender’s possession or ownership, whichever is earlier.
I. A fiduciary is not personally liable as an owner or operator pursuant to this section. This section does not preclude claims against assets held in an estate, a trust or other fiduciary capacity for the release or a threatened release of a hazardous substance from one of the assets. This section does not apply if either of the following apply:
1. A fiduciary through intentional misconduct or gross negligence causes, aggravates or contributes to the release or threatened release of hazardous substances or permits others to do so, except that a fiduciary shall not be liable for the intentional misconduct or gross negligence of any nonemployee agent or independent contractor if the fiduciary has not specifically directed the nonemployee agent or independent contractor to perform the grossly negligent act or engage in the intentional misconduct.
2. The appointment of the fiduciary is for the purpose of avoiding liability under this article. It is prima facie evidence that the fiduciary was appointed to avoid liability under this article if the facility is the only substantial asset in the fiduciary estate.
J. Subsections F, G, H and I shall not be construed to affect the liability of any person who is otherwise liable with respect to the release or threat of release pursuant to this section.
K. The director may adopt rules to implement subsections H and I.
L. A fiduciary may not be a fiduciary and grantor of the same fiduciary estate.
M. A unit of state or local government is not liable for purposes of this section if that unit is not liable under section 101(35)(A)(ii) or section 101(20)(D) of CERCLA.
N. Nonmanagerial employees acting within the course and scope of their employment are not liable under this article.
O. For purposes of this section:
1. "Fiduciary" means:
(a) A trust company or bank certified or authorized to engage in the trust business pursuant to Title 6, Chapter 8, Article 1.
(b) Any person appointed by a court or testamentary act to act as personal representative, executor, trustee, administrator, guardian, conservator, receiver or trustee in bankruptcy.
(c) Any person acting as a trustee of a deed of trust pursuant to section 33-803.
(d) Any person acting as a trustee pursuant to Title 14, Chapter 7.
(e) Any person acting pursuant to and subject to fiduciary obligations under the employee retirement income security act of 1974 (29 United States Code §§ 1101 through 1114).
2. "Indicia of ownership" means legal or equitable title that has been acquired through or is incident to the default of a borrower.