(a) General rule.--A responsible person under section 701¹ or a person who causes a release or threat of a release of a hazardous substance or causes a public nuisance under this act or causes a release or a substantial threat of release of a contaminant which presents a substantial danger to the public health or safety or the environment, or causes a release of a nonhazardous substance pursuant to section 501(g)² shall be liable for the response costs and for damages to natural resources. The department, a Commonwealth agency, or a municipality which undertakes to abate a public nuisance under this act or take a response action may recover those response costs and natural resource damages in an action in equity brought before a court of competent jurisdiction. In addition, the board is given jurisdiction over actions by the department to recover response costs and damages to natural resources.

(b) Amount.--In an action to recover response costs and natural resource damages, the department shall include administrative and legal costs incurred from its initial investigation up to the time that it recovers its costs. The amount attributable to administrative and legal costs shall be 10% of the amount paid for the response action or the actual costs, whichever is greater.

(c) Punitive damages.--Notwithstanding the provisions of section 709,³ a person who willfully fails to comply with an order of the department requiring a response action under section 505(c)(1)⁴ shall be liable for punitive damages in an amount which is at least equal to but not more than three times the costs recoverable under this section. A party shall not be liable for punitive damages when a court reviewing the order under section 508⁵ finds that the department's order was invalid as to that party.

(d) Effect of damages assessment.--A determination or assessment of damages to natural resources for the purposes of this act, the Federal Superfund Act, or section 311 of the Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C. § 1321) made by the department or other trustee shall have the force and effect of a rebuttable presumption on behalf of the department or other trustee in an administrative or judicial proceeding under this act, the Federal Superfund Act or section 311 of the Federal Water Pollution Control Act.

(e) Civil penalty.--When the department files an action to recover its response costs and natural resources damage assessment, it may also seek civil penalties under section 1104.⁶ Its right to recover response costs, natural resource damages and civil penalties shall be upheld unless the liable person can demonstrate that the department acted arbitrarily and capriciously on the basis of the administrative record developed under section 506⁷ as permitted to be supplemented under section 508.