New Superfund Law May Impact Relations With Scrap Suppliers.

In November, President Clinton signed into law the Superfund Recycling Equity Act (P.L. 106-113). This law allows Superfund liability relief for scrap recyclers that meet certain criteria, including a demonstration of "reasonable care" in determining the environmental compliance status of the facility to which its scrap material is sent. As a result of the "reasonable care" requirement, "recyclers" must contact the government to inquire about a consuming facility's operations and compliance with applicable environmental requirements. Most foundries are consuming facilities, meaning they purchase scrap metal or other recyclable materials, and, as a result, may be contacted by their scrap suppliers requesting information about environmental compliance. The law specifies that it is the recycling facility's responsibility to meet the reasonable care requirement. However, the Institute of Scrap Recycling Industries (ISRI) is advising its members to conta ct their consumers and ask those facilities to verify compliance with federal, state and local environmental laws. AFS has learned that several foundries already have received letters from their scrap suppliers--responding to this letter is completely voluntary. ISRI also has developed a compliance checklist for its members to send directly to foundries and other consuming facilities--filling out such a checklist also is voluntary. In addition, foundries that send their scrap back through a smelter may meet the definition of a "recycler" and pursue the future Superfund liability relief provided by this law.