Environmental

Which of the following describes the 'innocent landowner defense' under CERCLA?

AAny property owner is automatically exempt from CERCLA liability
BA defense allowing property owners who conducted appropriate due diligence and had no knowledge of contamination to avoid CERCLA liability✓ Correct
CA defense only available to residential property owners
DA defense that requires the owner to pay half the cleanup costs

Explanation

The innocent landowner defense (bona fide prospective purchaser defense) exempts purchasers who performed all appropriate inquiry (Phase I ESA), had no prior knowledge of contamination, and took reasonable steps after discovery from CERCLA liability.

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