Section 56-0509. Liability limitation

1.  (a)  Notwithstanding  any  other  provision  of  law and except as
  provided in subdivision two of this section  and  in  paragraph  (h)  of
  subdivision  two  of  section 56-0503 of this title, the following shall
  not be liable to the state upon any statutory or  common  law  cause  of
  action,  or to any person upon any statutory cause of action arising out
  of the presence of any contamination in  or  on  property  at  any  time
  before  the  effective  date of a contract entered into pursuant to this
  title:
    (i) a municipality receiving state  assistance  under  this  title  to
  undertake  an  environmental  restoration project and complying with the
  terms and conditions of the contract providing such assistance; and
    (ii) a  successor  in  title  to  the  real  property  subject  to  an
  environmental  restoration project; any lessee of such property; and any
  person  that  provides  financing  to  such  party   relative   to   the
  remediation,  restoration,  or  redevelopment of such property; provided
  that such successor in  title,  lessee,  or  lender  did  not  generate,
  arrange  for,  transport,  or dispose, and did not cause the generation,
  arrangement  for,  transportation,  or  disposal  of  any  contamination
  located at such property, and did not own such property.
    (b)  Notwithstanding  any  other  provision  of this title, any person
  seeking the benefit of this subdivision shall bear the burden of proving
  that a cause of action, or any part thereof, is attributable  solely  to
  contamination  present in or on such parcel before the effective date of
  such contract.
    2. Subdivisions one and three of  this  section  shall  not  apply  to
  relieve  any  municipality,  successor  in title, lessee, or lender from
  liability arising from:
    (a) failing to implement such project to the department's satisfaction
  or failing to comply with the terms and conditions of the contract;
    (b) fraudulently demonstrating that the cleanup levels  identified  in
  or to be identified in accordance with such project were reached;
    (c)  causing  the release or threat of release at the property subject
  to such project of any contamination after the effective  date  of  such
  contract; or
    (d)  changing  such property's use from the intended use as identified
  in the contract pursuant to section 56-0503  of  this  title  to  a  use
  requiring  a lower level of residual contamination unless the additional
  remedial activities are undertaken which shall meet  the  same  standard
  for  protection  of  public  health  and the environment that applies to
  remedial actions undertaken pursuant to 27-1313 of this chapter so  that
  such  use can be implemented with sufficient protection of public health
  and the environment.
    3. The state shall  indemnify  and  save  harmless  any  municipality,
  successor  in  title,  lessee,  or lender identified in paragraph (a) of
  subdivision one of this  section  in  the  amount  of  any  judgment  or
  settlement,  obtained  against  such  municipality,  successor in title,
  lessee, or lender in any court  for  any  common  law  cause  of  action
  arising  out  of  the presence of any contamination in or on property at
  anytime before the effective date of a contract entered into pursuant to
  this title. Such municipality, successor in  title,  lessee,  or  lender
  shall  be entitled to representation by the attorney general, unless the
  attorney general  determines,  or  a  court  of  competent  jurisdiction
  determines,  that  such  representation  would  constitute a conflict of
  interest, in which case  the  attorney  general  shall  certify  to  the
  comptroller  that  such  party  is  entitled  to  private counsel of its
  choice, and reasonable attorneys' fees and expenses shall be  reimbursed
  by  the  state. Any settlement of such an action shall be subject to the

  approval of the attorney  general  as  to  form  and  amount,  and  this
  subdivision  shall  not apply to any settlement of any such action which
  has not received such approval.
    4.  A  municipality  receiving  state  assistance and any successor in
  title  shall  implement  a  department-approved  environmental  sampling
  program  and,  in  the  event  that  conditions on such property are not
  sufficiently protective of human health  for  its  current  use  due  to
  environmental conditions related to the property subject to such project
  that  were  unknown  to  the department as of the effective date of such
  contract or due to information received in whole or in  part  after  the
  department's  approval  of  such  project's final engineering report and
  certification, take  such  emergency  measures  that  are  necessary  to
  maintain  sufficient  protection  of  human  health  for such property's
  current use until such conditions  are  addressed;  and  the  department
  shall  take  such  measures  as it may determine are necessary to return
  such property to a condition sufficiently  protective  of  human  health
  using  monies  from the environmental restoration project account of the
  hazardous waste remedial fund established under  section  ninety-seven-b
  of the state finance law.
    5. In addition to any other powers the department may have, including,
  but  not  limited  to,  the  powers set forth in section 56-0515 of this
  title, the department shall have the authority to  periodically  inspect
  property  to ensure that the use of the property complies with the terms
  and conditions of the contract and any engineering and/or  institutional
  controls placed on the property.