Urban Environmental Initiative Act

Urban Environmental Initiative Act - Directs the Administrator of the Environmental Protection Agency to: (1) report to the Congress on health-based State laws and standards for the cleanup of sites at which hazardous substances were released or disposed; and (2) make recommendations to States on such standards, including guidance on the development of standards for sites in urban areas.

Requires the Administrator to report to the Congress on State property transfer laws and whether such laws: (1) promote better land management practices; (2) help locate sites on which hazardous substances have been released or disposed; and (3) provide better protection for the buyer.

Directs the Administrator to establish a computer data base that contains a national Superfund site inventory and includes information on any Federal action at a site or facility at which a hazardous substance was released or disposed.

Requires the Administrator to: (1) prepare a list of Superfund sites located in urban areas that would be suitable for economic development ("targeted sites"); and (2) carry out a study of the effectiveness of technologies for conducting response actions at targeted sites.

Authorizes the Administrator, in any case in which a person purchases a targeted site for purposes of economic development, to provide a covenant not to sue such person under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) for a release or threatened release of a hazardous substance at such site. Requires such covenants to: (1) not take effect unless the person enters into an agreement to complete remedial action at the site; and (2) include an exception that allows the Administrator to sue for future liability where such liability arises out of conditions unknown at the time the Administrator enters into a remedial action agreement.

Directs the Administrator, in determining which sites to give priority for response action under CERCLA, to give preference to targeted sites that are located in the most populous areas, pose the greatest threat to human health, and have the greatest potential for economic development.

Authorizes the Administrator to provide technical and financial assistance to States for implementing this Act and CERCLA.

Authorizes appropriations.