DOC. 
 
 Y 1,1/8: 
 
 101-242/pt.l 
 
 HOUSE OF REPRESENTATIVES 
 
 Rept. 101-242, 
 Part 1 
 
 OIL POLLUTION PREVENTION, RESPONSE, LIABILITY, 
 AND COMPENSATION ACT OF 1989 
 
 September 18, 1989. — Ordered to be printed 
 
 Mr. Anderson, from the Committee on Public Works and 
 Transportation, submitted the following 
 
 REPORT 
 
 together with 
 ADDITIONAL VIEWS 
 
 [To accompany H.R. 1465 which on March 16, 1989, was referred jointly to the Com- 
 mittee on Public Works and Transportation and the Committee on Merchant 
 Marine and Fisheries] 
 
 [Including cost estimate of the Congressional Budget Office] 
 
 The Committee on Public Works and Transportation, to whom 
 was referred the bill (H.R. 1465) to provide liability for damages re- 
 sulting from oil pollution, to establish a fund for the payment of 
 compensation for such damages, to improve oil pollution preven- 
 tion and response, and for other purposes, having considered the 
 same, report favorably thereon with an amendment and recom- 
 mend that the bill as amended do pass. 
 
 The amendment is as follows: 
 
 Strike out all after the enacting clause and insert in lieu thereof 
 the following: 
 
 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
 
 (a) Short Title.— This Act may be cited as the "Oil Pollution Prevention, Re- 
 sponse, Liability, and Compensation Act of 1989". 
 
 (b) Table of Contents. — The contents of this Act are as follows: 
 
 Sec. 1. Short title and table of contents. 
 
 TITLE I— OIL POLLUTION LIABILITY AND COMPENSATION 
 
 Sec. 101. Definitions. 
 
 Sec. 102. Liability. 
 
 Sec. 103. Uses of the Fund. 
 
 Sec. 104. Claims procedure. 
 
 Sec. 105. Designation, notification, and advertisement. 
 
 Sec. 106. Subrogation. 
 
 21-720 
 
UNIVERSITY OF 
 2 ILLINOIS LIBRARY 
 
 Sec. 1*7. Financial responsibility. AT URBANA'CHAMPAIGN 
 
 Sec. 108. Litigation, jurisdiction, and venue. nn/M/rkTAAi/rt 
 
 Sec. 109. Relationship to other law. DVJUf\b I AOKS 
 
 Sec. 110. Regulations 
 Sec. 111. Effective date. 
 
 TITLE II— PREVENTION AND RESPONSE 
 
 Sec. 201. Authority to direct responses. 
 
 Sec. 202. Response plans. 
 
 Sec. 203. Review and revision of response capability. 
 
 Sec. 204. Computer listing of emergency response resources and availability of agency data. 
 
 Sec. 205. Vessel traffic systems. 
 
 Sec. 206. Navigational aids. 
 
 Sec. 207. Periodic gauging of plating thickness of commercial vessels. 
 
 Sec. 208. Overfill and tank level or pressure monitoring devices. 
 
 Sec. 209. Tanker personnel. 
 
 Sec. 210. Use of liners. 
 
 Sec. 211. Modifications to dredges. 
 
 Sec. 212. Tanker free zones. 
 
 Sec. 213. Superiority of Federal pilots' licenses. 
 
 Sec. 214. Research and development program. 
 
 Sec. 215. Consideration of alcohol abuse. 
 
 Sec. 216. Access to National Driver Register. 
 
 TITLE III— IMPLEMENTATION OF INTERNATIONAL CONVENTIONS 
 
 Sec. 301. Definitions. 
 
 Sec. 302. Applicability of conventions. 
 
 Sec. 303 Recognition of International Fund. 
 
 Sec. 304. Action in United States courts. 
 
 Sec. 305. Contribution to International Fund. 
 
 Sec. 306. Recognition of foreign judgments. 
 
 Sec. 307. Financial responsibility. 
 
 Sec. 308. Regulations. 
 
 TITLE IV— MISCELLANEOUS PROVISIONS 
 
 Sec. 401. Trans- Alaska pipeline fund. 
 
 Sec. 402. Intervention on the High Seas Act. 
 
 Sec. 403. Federal Water Pollution Control Act. 
 
 Sec. 404. Deepwater Port Act. 
 
 Sec. 405. Outer Continental Shelf Lands Act Amendments of 1978. 
 
 Sec. 406. Qualified authorizing legislation. 
 
 Sec. 407. Effective date. 
 
 TITLE I— OIL POLLUTION LIABILITY AND COMPENSATION 
 
 SEC. 101. DEFINITIONS. 
 
 For the purposes of this Act — 
 
 (1) Act of god.— The term "act of God" means an unanticipated grave natu- 
 ral disaster or other natural phenomenon of an exceptional, inevitable, and ir- 
 resistible character the effects of which could not have been prevented or avoid- 
 ed by the exercise of due care or foresight. 
 
 (2) Claim. — The term "claim" means a request, made in writing for a sum 
 certain, for compensation for damages or removal costs resulting from an inci- 
 dent. 
 
 (3) Claimant. — The term "claimant" means any person who presents a claim 
 for compensation under this Act. 
 
 (4) Damages.— The term "damages" means damages for injury to, destruction 
 of, or loss of natural resources and damages for economic loss specified in sec- 
 tion 102(a)(2) of this Act, and includes the cost of assessment of damages. 
 
 (5) Discharge. — The term "discharge" means any emission (other than natu- 
 ral seepage), intentional or unintentional, and includes spilling, leaking, pump- 
 ing, pouring, emitting, emptying, or dumping. 
 
 (6) Exclusive economic zone. — The term "exclusive economic zone" means 
 the zone established by Presidential Proclamation Numbered 5030, dated March 
 10, 1983. 
 
 (7) Facility.— The term "facility" means any structure, group of structures, 
 equipment, or device (other than a vessel) which is used for one or more of the 
 following purposes: exploring for, drilling for, producing, storing, handling, 
 transferring, processing, or transporting oil. Such term includes any motor vehi- 
 cle, rolling stock, or pipeline used for one or more such purposes. 
 
 (8) Foreign offshore unit. — The term "foreign offshore unit" means a facili- 
 ty which is located, in whole or in part, in the territorial sea or on or over the 
 continental shelf of a foreign country. 
 
 (9) Fund.— The term "Fund" means the Oil Spill Liability Trust Fund estab- 
 lished by section 9509 of the Internal Revenue Code of 1986. 
 
BC. 
 
 (10) Gross ton.— The 
 ance with the provision 
 ment of Ships, 1969. 
 
 (11) Guarantor.— Th 
 responsible party, who ] 
 sible party under this A 
 
 (12) Incident.— The t 
 rences having the sanu 
 combination thereof, r 
 charge of oil. 
 
 (13) Indian tribe. — r 
 nation, or other organ: 
 Native regional or vill 
 special programs and a 
 of their status as India 
 
 (14) Lessee. — The te 
 in an oil or gas lease o 
 in section 2(a) of the S 
 lands of the Outer Cc 
 State law or the Outer 
 
 (15) Mobile offsho 
 unit" means a vessel ( 
 offshore facility. 
 
 (16) National con 
 means the national cc 
 eral Water Pollution 
 Comprehensive EnviH 
 
 (17) Natural resoiJ 
 wildlife, biota, air, wa 
 resources belonging t< 
 wise controlled by th 
 economic zone), any ! 
 government. 
 
 (18) Navigable wa 
 the United States, in( 
 
 (19) Offshore face 
 
 (A) a facility w 
 gable waters (as 
 Lands Act (43 U. 
 in section 2 of th 
 
 (B) a deepwate 
 
 (20) Oil.— The ten 
 tion or residue there 
 
 (21) Onshore faci 
 eluding any offshore 
 any land within the 
 
 (22) Owner.— The 
 absence of title any 
 
 CENTRAL CIRCULATION BOOKSTACKS 
 
 The person charging this material is re- 
 sponsible for its return to the library from 
 which it was borrowed on or before the 
 Latest Date stamped below. 
 
 Theft mutilation, ond underlining of book, are reasons 
 
 Z £££? QC,lon -- may ~* '" *•— <™ 
 
 TO RENEW CAU TELEPHONE CENTER, 333-8400 
 
 UNIVERSITY Of ILLINOIS LIBRARY AT URBANA-CHAMPA.GN 
 
 APR 2 8 1993 
 MAY 1 2 f993 
 
 (X- 
 
 er 
 
 When renewing by phone, write new due date below he 
 
 previous due date 
 
 79521 L162 
 
 tract, license, or other iuim ui a& ^^. , _ 
 
 term does not include a person who, without participating in the management 
 or operation of a vessel or facility, holds indicia of ownership primarily to pro- 
 tect a security interest therein. 
 
 (23) Person.— The term "person" means an individual, corporation, partner- 
 ship, association, Federal agency, State, municipality, commission, or political 
 subdivision of a State, or any interstate body. 
 
 (24) Permittee. — The term "permittee" means a person holding an authoriza- 
 tion, license, or permit for geological exploration issued under section 11 of the 
 Outer Continental Shelf Lands Act or applicable State law. 
 
 (25) Public vessel. — The term "public vessel" means a vessel owned or bare- 
 boat chartered and operated by the United States, or by a State or political sub- 
 division thereof, or by a foreign nation, except when such vessel is engaged in 
 commerce. 
 
 (26) Remove; removal.— The term "remove" or "removal" refers to removal 
 of the oil from the water and shorelines or the taking of such other actions as 
 may be necessary to minimize or mitigate damage to the public health or wel- 
 fare, including damage to fish, shellfish, wildlife, and public and private proper- 
 ty, shorelines, and beaches. 
 
UNIVERSITY OF 
 2 ILLINOIS LIBRARY 
 
 Sec. 1<W. Financial responsibility. AT URBANACHAMPAIGN 
 
 Sec. 108. Litigation, jurisdiction, and venue. nnAi/r*TAAi/ft 
 
 Sec. 109. Relationship to other law. bUUtAb I ACKS 
 
 Sec. 110. Regulations. 
 Sec. 111. Effective date. 
 
 TITLE II— PREVENTION AND RESPONSE 
 
 Sec. 201. Authority to direct responses. 
 
 Sec. 202. Response plans. 
 
 Sec. 203. Review and revision of response capability. 
 
 Sec. 204. Computer listing of emergency response resources and availability of agency data. 
 
 Sec. 205. Vessel traffic systems. 
 
 Sec. 206. Navigational aids. 
 
 Sec. 207. Periodic gauging of plating thickness of commercial vessels. 
 
 Sec. 208. Overfill and tank level or pressure monitoring devices. 
 
 Sec. 209. Tanker personnel. 
 
 Sec. 210. Use of liners. 
 
 Sec. 211. Modifications to dredges. 
 
 Sec. 212. Tanker free zones. 
 
 Sec. 213. Superiority of Federal pilots' licenses. 
 
 Sec. 214. Research and development program. 
 
 Sec. 215. Consideration of alcohol abuse. 
 
 Sec. 216. Access to National Driver Register. 
 
 TITLE III— IMPLEMENTATION OF INTERNATIONAL CONVENTIONS 
 
 Sec. 301. Definitions. 
 
 Sec. 302. Applicability of conventions. 
 
 Sec. 303. Recognition of International Fund. 
 
 Sec. 304. Action in United States courts. 
 
 Sec. 305. Contribution to International Fund. 
 
 Sec. 306. Recognition of foreign judgments. 
 
 Sec. 307. Financial responsibility. 
 
 Sec. 308. Regulations. 
 
 TITLE IV— MISCELLANEOUS PROVISIONS 
 
 Sec. 401. Trans- Alaska pipeline fund. 
 
 Sec. 402. Intervention on the High Seas Act. 
 
 Sec. 403. Federal Water Pollution Control Act. 
 
 Sec. 404. Deepwater Port Act. 
 
 Sec. 405. Outer Continental Shelf Lands Act Amendments of 1978. 
 
 Sec. 406. Qualified authorizing legislation. 
 
 Sec. 407. Effective date. 
 
 TITLE I— OIL POLLUTION LIABILITY AND COMPENSATION 
 
 SEC. 101. DEFINITIONS. 
 
 For the purposes of this Act — 
 
 (1) Act of god. — The term "act of God" means an unanticipated grave natu- 
 ral disaster or other natural phenomenon of an exceptional, inevitable, and ir- 
 resistible character the effects of which could not have been prevented or avoid- 
 ed by the exercise of due care or foresight. 
 
 (2) Claim. — The term "claim" means a request, made in writing for a sum 
 certain, for compensation for damages or removal costs resulting from an inci- 
 dent. 
 
 (3) Claimant. — The term "claimant" means any person who presents a claim 
 for compensation under this Act. 
 
 (4) Damages. — The term "damages" means damages for injury to, destruction 
 of, or loss of natural resources and damages for economic loss specified in sec- 
 tion 102(a)(2) of this Act, and includes the cost of assessment of damages. 
 
 (5) Discharge. — The term "discharge" means any emission (other than natu- 
 ral seepage), intentional or unintentional, and includes spilling, leaking, pump- 
 ing, pouring, emitting, emptying, or dumping. 
 
 (6) Exclusive economic zone. — The term "exclusive economic zone" means 
 the zone established by Presidential Proclamation Numbered 5030, dated March 
 10, 1983. 
 
 (7) Facility. — The term "facility" means any structure, group of structures, 
 equipment, or device (other than a vessel) which is used for one or more of the 
 following purposes: exploring for, drilling for, producing, storing, handling, 
 transferring, processing, or transporting oil. Such term includes any motor vehi- 
 cle, rolling stock, or pipeline used for one or more such purposes. 
 
 (8) Foreign offshore unit. — The term "foreign offshore unit" means a facili- 
 ty which is located, in whole or in part, in the territorial sea or on or over the 
 continental shelf of a foreign country. 
 
 (9) Fund.— The term "Fund" means the Oil Spill Liability Trust Fund estab- 
 lished by section 9509 of the Internal Revenue Code of 1986. 
 
DOC, 
 
 (10) Gross ton. — The term "gross ton" means tonnage measured in accord- 
 ance with the provisions of the International Convention on Tonnage Measure- 
 ment of Ships, 1969. 
 
 (11) Guarantor. — The term "guarantor" means any person, other than the 
 responsible party, who provides evidence of financial responsibility for a respon- 
 sible party under this Act. 
 
 (12) Incident. — The term "incident" means any occurrence or series of occur- 
 rences having the same origin, involving one or more vessels, facilities, or any 
 combination thereof, resulting in the discharge or substantial threat of dis- 
 charge of oil. 
 
 (13) Indian tribe. — The term "Indian tribe" means any Indian tribe, band, 
 nation, or other organized group or community, but not including any Alaska 
 Native regional or village corporation, which is recognized as eligible for the 
 special programs and services provided by the United States to Indians because 
 of their status as Indians. 
 
 (14) Lessee. — The term "lessee" means a person holding a leasehold interest 
 in an oil or gas lease on lands beneath navigable waters (as such term is defined 
 in section 2(a) of the Submerged Lands Act (43 U.S.C. 1301(a)) or on submerged 
 lands of the Outer Continental Shelf, granted or maintained under applicable 
 State law or the Outer Continental Shelf Lands Act. 
 
 (15) Mobile offshore drilling unit. — The term "mobile offshore drilling 
 unit" means a vessel (other than a self-elevating lift vessel) capable of use as an 
 offshore facility. 
 
 (16) National contingency plan. — The term "national contingency plan" 
 means the national contingency plan published under section 311(c) of the Fed- 
 eral Water Pollution Control Act and revised pursuant to section 105 of the 
 Comprehensive Environmental Response, Compensation, and Liability Act. 
 
 (17) Natural resources. — The term "natural resources" includes land, fish, 
 wildlife, biota, air, water, ground water, drinking water supplies, and other such 
 resources belonging to, managed by, held in trust by, appertaining to, or other- 
 wise controlled by the United States (including the resources of the exclusive 
 economic zone), any State or local government or Indian tribe, or any foreign 
 government. 
 
 (18) Navigable waters. — The term "navigable waters" means the waters of 
 the United States, including the territorial sea. 
 
 (19) Offshore facility. — The term "offshore facility" means — 
 
 (A) a facility which is located, in whole or in part, on lands beneath navi- 
 gable waters (as such term is defined in section 2(a) of the Submerged 
 Lands Act (43 U.S.C. 1301(a))) or on the Outer Continental Shelf (as defined 
 in section 2 of the Outer Continental Shelf Lands Act); and 
 
 (B) a deep water port licensed under the Deepwater Port Act of 1974. 
 
 (20) Oil. — The term "oil" means petroleum, including crude oil or any frac- 
 tion or residue therefrom. 
 
 (21) Onshore facility. — The term "onshore facility" means any facility (ex- 
 cluding any offshore facility) any portion of which is located in, on, or under 
 any land within the United States. 
 
 (22) Owner. — The term "owner" means any person holding title to, or in the 
 absence of title any other indicia of ownership of (whether by lease, permit, con- 
 tract, license, or other form of agreement), a vessel or facility; except that such 
 term does not include a person who, without participating in the management 
 or operation of a vessel or facility, holds indicia of ownership primarily to pro- 
 tect a security interest therein. 
 
 (23) Person.— The term "person" means an individual, corporation, partner- 
 ship, association, Federal agency, State, municipality, commission, or political 
 subdivision of a State, or any interstate body. 
 
 (24) Permittee. — The term "permittee" means a person holding an authoriza- 
 tion, license, or permit for geological exploration issued under section 1 1 of the 
 Outer Continental Shelf Lands Act or applicable State law. 
 
 (25) Public vessel. — The term "public vessel" means a vessel owned or bare- 
 boat chartered and operated by the United States, or by a State or political sub- 
 division thereof, or by a foreign nation, except when such vessel is engaged in 
 commerce. 
 
 (26) Remove; removal. — The term "remove" or "removal" refers to removal 
 of the oil from the water and shorelines or the taking of such other actions as 
 may be necessary to minimize or mitigate damage to the public health or wel- 
 fare, including damage to fish, shellfish, wildlife, and public and private proper- 
 ty, shorelines, and beaches. 
 
(27) Removal costs. — The term "removal costs" means the costs of removal 
 taken after a discharge of oil has occurred, including all costs of completing re- 
 moval and the costs to prevent, minimize, or mitigate oil pollution where'there 
 was a substantial threat of a discharge of oil including costs incurred under sub- 
 section (c), (d), (e), or (1) of section 311 of the Federal Water Pollution Control 
 Act, the Intervention on the High Seas Act, or section 18 of the Deepwater Port 
 Act of 1974. 
 
 (28) Responsible party. — The term "responsible party" means the following: 
 
 (A) Vessels. — In the case of a vessel, any person owning, operating, or 
 chartering by demise the vessel. 
 
 (B) Facilities. — In the case of a facility (including a pipeline but not in- 
 cluding any other offshore facility), any person owning or operating the fa- 
 cility; except that such term does not include a Federal agency, State, mu- 
 nicipality, commission, or political subdivision of a State, or any interstate 
 body, that, as the owner of an onshore facility, transfers possession and 
 right to use the property to another person by lease, assignment, or permit. 
 
 (C) Offshore facilities. — In the case of an offshore facility (other than a 
 pipeline or a deepwater port licensed under the Deepwater Port Act of 
 1974), the lessee or permittee of the area in which the facility is located or 
 the holder of a right of use and easement granted under applicable State 
 law or the Outer Continental Shelf Lands Act for the area in which the 
 facility is located (if the holder is a different person than the lessee or per- 
 mittee). 
 
 (D) Deepwater ports. — In the case of a deepwater port licensed under 
 the Deepwater Port Act of 1974, the licensee. 
 
 (E) Abandonment. — In the case of an abandoned vessel, onshore facility, 
 or offshore facility, the persons who were, or would have been, responsible 
 parties immediately prior to the abandonment of the vessel or facility. 
 
 (29) Secretary. — The term "Secretary" means the Secretary of Transporta- 
 tion. 
 
 (30) Tanker. — The term "tanker" means a vessel constructed or adapted for 
 the carriage of oil in bulk or in commercial quantities as cargo; except that the 
 term does not include a non-self-propelled vessel of less than 3,000 gross tons 
 carrying oil in bulk as cargo or in residue from cargo and operating on waters 
 of the United States lying inside the baseline from which the territorial sea is 
 measured or on waters outside such baseline which are part of the Gulf Intra- 
 coastal Waterway. 
 
 (31) United states; state.— The term "United States" and "State" mean the 
 several States of the United States, the District of Columbia, the Common- 
 wealth of Puerto Rico, Guam, American Samoa, the United States Virgin Is- 
 lands, the Commonwealth of the Northern Marianas, and any other territory or 
 possession over which the United States has jurisdiction. 
 
 (32) Vessel. — The term "vessel" means every description of watercraft or 
 other artificial contrivance used, or capable of being used, as a means of trans- 
 portation on water other than a public vessel. 
 
 SEC. 102. LIABILITY. 
 
 (a) Elements of Liability. — 
 
 (1) Joint, several, and strict liability. — Notwithstanding any other provi- 
 sion of law and subject to the provisions of this section, the responsible party 
 for a vessel or a facility from which oil is discharged, or which poses a substan- 
 tial threat of a discharge of oil, into or upon the navigable waters or adjoining 
 shorelines or the waters of the exclusive economic zone is jointly, severally, and 
 strictly liable for the removal costs specified in paragraph (2) which arise out of 
 or directly result from such incident and for the damages specified in paragraph 
 (2) which are proximately caused by such incident. 
 
 (2) Covered removal costs and damages. — 
 
 (A) Removal costs. — The removal costs referred to in paragraph (1) — 
 
 (i) are removal costs for removal actions taken by the United States, 
 a State, or an Indian tribe which are not inconsistent with the national 
 contingency plans; and 
 
 (ii) are removal costs for removal actions taken by any other person 
 which are consistent with the national contingency plan. 
 Such costs shall be recoverable by any claimant. 
 
 (B) Damages. — The damages referred to in paragraph (1) are the follow- 
 ing: 
 
(i) Natural resources. — Damages for injury to, destruction of, or 
 loss of natural resources, including the reasonable costs of assessing 
 such injury, destruction, or loss. Such damages shall be recoverable by 
 the following: a United States trustee, a State trustee, and an Indian 
 tribe trustee. 
 
 (ii) Real or personal property. — Damages for injury to, or economic 
 losses resulting from destruction of, real or personal property. Such 
 damages shall be recoverable by a claimant who owns or leases such 
 property. 
 
 (iii) Subsistence use. — Damages for loss of subsistence use of natural 
 resources. Such damages shall be recoverable by any claimant who so 
 uses natural resources which have been injured, destroyed, or lost. 
 
 (iv) Revenues. — Damages equal to the net loss of taxes, royalties, 
 rents, fees, or net profits shares, for a period not to exceed 2 years, due 
 to the injury, destruction, or loss of real property, personal property, or 
 natural resources. Such damages shall be recoverable by the Govern- 
 ment of the United States, a State, or a political subdivision thereof. 
 
 (v) Profits and earning capacity. — Damages equal to the loss of 
 profits or impairment of earning capacity (based on prior profits and 
 earnings) due to the injury, destruction, or loss of real property, person- 
 al property, or natural resources. Such damages shall be recoverable by 
 any claimant who derives at least 25 percent of his or her earnings 
 from activities which utilize such property or natural resources, or, if 
 such activities are seasonal in nature, 25 percent of his or her earnings 
 during the applicable season. 
 
 (3) Excluded discharges. — Paragraph (1) shall not apply to any discharge au- 
 thorized by a permit issued under Federal, State, or local law. 
 
 (4) Liability of third parties. — 
 
 (A) In general. — In any case in which the responsible party for a vessel 
 or facility establishes that a discharge and the resulting removal costs and 
 damages were caused solely by an act or omission of 1 or more third parties 
 described in subsection (b)(1)(B) (or by such an act or omission in combina- 
 tion with an act of God or an act of war), the third party or parties shall be 
 treated as the responsible party or parties for purposes of determining li- 
 ability under this Act. 
 
 (B) Limitation applied.— 
 
 (i) Owner or operator of vessel or facility. — If the third party or 
 parties are the owner or operator of a vessel or facility which caused 
 the incident, the liability of the third party or parties shall be subject 
 to the limits provided in subsection (c) as applied with respect to such 
 vessel or facility. 
 
 (ii) Other cases. — In any case other than the one described in clause 
 (i), the liability of the third party or parties shall not exceed the limita- 
 tion which would have been applicable to the responsible party of the 
 vessel or facility from which the discharge actually occurred if such re- 
 sponsible party were liable. 
 
 (5) Division of responsibility for discharges of mobile offshore drilling 
 units.— 
 
 (A) Treated first as a tanker. — For purposes of determining the respon- 
 sible party and applying this Act, a mobile offshore drilling unit which is 
 being used as an offshore facility shall be treated as a tanker with respect 
 to the discharge, or the substantial threat of a discharge, of oil on or above 
 the surface of the water, except as provided in subparagraph (B). 
 
 (B) Treated as a facility for excess liability. — To the extent that re- 
 moval costs and damages from an incident described in subparagraph (A) 
 exceed the amount for which the responsible party is liable under subpara- 
 graph (A) (as such amount may be limited under subsection (c)(1)(A)), the 
 mobile offshore drilling unit shall be treated as an offshore facility. For 
 purposes of applying subsection (c)(1)(C), the amount specified in such sub- 
 section shall be reduced by the amount for which the responsible party is 
 liable pursuant to subparagraph (A). 
 
 (b) Defenses to Liability. — 
 
 (1) Complete defenses. — Except when the responsible party has failed or re- 
 fused to report the incident where required by law and the responsible party 
 knows or has reason to know of the incident, there is no liability under subsec- 
 tion (a) for the incident if the responsible party establishes that the incident— 
 
6 
 
 (A) resulted from an act of God, an act of war, hostilities, civil war, or 
 insurrection; or 
 
 (B) was solely caused by an act or omission of 1 or more persons other 
 than — 
 
 (i) a responsible party; 
 
 (ii) an employee or agent of a responsible party; or 
 (iii) one whose act or omission occurs in connection with a contrac- 
 tual relationship with a responsible party. 
 (2) Defenses as to particular claimants.— There is no liability under sub- 
 section (a) — 
 
 (A) as to a claimant, if the incident is caused, in whole or in part, by the 
 gross negligence or willful misconduct of the claimant; or 
 
 (B) as to a claimant, to the extent that the incident is caused by the negli- 
 gence of the claimant. 
 
 (c) Limits on Liability. — 
 
 (1) General rule. — The total of the liability of a responsible party under sub- 
 section (a) and any removal costs incurred by, or on behalf of, the responsible 
 party with respect to each incident shall not exceed — 
 
 (A) $500 per gross ton or $5,000,000, whichever is greater (but not to 
 exceed $150,000,000), for any tanker; 
 
 (B) $300 per gross ton or $500,000, whichever is greater, for any other 
 vessel; or 
 
 (C) $75,000,000 for any facility. 
 
 (2) Exceptions. — 
 
 (A) Proximate cause.— Paragraph (1) shall not apply if the incident was 
 proximately caused by — 
 
 (i) willful misconduct or gross negligence within the privity or knowl- 
 edge of the responsible party; or 
 
 (ii) a violation, within the privity or knowledge of the responsible 
 party, of applicable Federal safety, construction, or operating regula- 
 tions. 
 
 (B) Failure or refusal of responsible party.— Paragraph (1) shall not 
 apply if the responsible party fails or refuses — 
 
 (i) to report the incident where required by law and the responsible 
 party knows or has reason to know of the incident; 
 
 (ii) to provide all reasonable cooperation and assistance requested by 
 a responsible official in connection with removal activities; or 
 
 (iii) without sufficient cause, to comply with an order issued under 
 section 311(e) of the Federal Water Pollution Control Act. 
 
 (3) Adjusting limits of liability. — 
 
 (A) Facilities.— 
 
 (i) General rule.— The Secretary is authorized to establish, by regu- 
 lation, with respect to any class or category of facility (excluding an off- 
 shore facility but including a deepwater port, as defined in section 3 of 
 the Deepwater Port Act of 1974) a maximum limit of liability under 
 this section of less than $75,000,000, but not less than $8,000,000, taking 
 into account the size, storage capacity, oil throughput, proximity to sen- 
 sitive areas, type of oil handled, history of discharges, and other factors 
 relevant to risks posed by the class or category of facility. 
 
 (ii) Periodic reports. — The Secretary shall, within 6 months after 
 the date of the enactment of this Act and from time to time thereafter, 
 report to Congress on the desirability of adjusting the limits of liability 
 specified in paragraph (1) of this subsection. 
 
 (B) Vessels.— 
 
 (i) Study. — The Secretary shall conduct a study of the relative oper- 
 ational and environmental risks posed by the transportation of oil by 
 vessel to deepwater ports (as defined in section 3 of the Deepwater Port 
 Act of 1974) versus the transportation of oil by vessel to other ports. 
 Such study shall include a review and analysis of offshore lightering 
 practices used in connection with such transportation, an analysis of 
 the volume of oil transported by vessel using such practices, and an 
 analysis of the frequency and volume of oil discharges which occur in 
 connection with the use of such practices. 
 
 (ii) Report.— Not later than 1 year after the date of the enactment of 
 this Act, the Secretary shall submit to Congress a report on the results 
 of the study conducted under this subparagraph. 
 
(iii) Rulemaking proceeding.— If the Secretary determines, based on 
 the results of the study conducted under this subparagraph, that the 
 use of deepwater ports in connection with the transportation of oil by 
 vessel results in a lower operational or environmental risk than the use 
 of other ports in connection with such transportation, the Secretary 
 shall initiate, not later than the 180th day following the date of submis- 
 sion of the report to Congress under this subparagraph, a rulemaking 
 proceeding to lower the limits of liability under this section with re- 
 spect to vessels transporting oil to deepwater ports and with respect to 
 such ports and may lower such limits of liability as the Secretary deter- 
 mines appropriate but with respect to such ports only in accordance 
 with subparagraph (A). 
 
 (d) Liability for Interest. — 
 
 (1) General rule. — The responsible party or his or her guarantor shall be 
 liable to a claimant for interest on the amount paid in satisfaction of a claim 
 under this section for the period described in paragraph (2). 
 
 (2) Period.— 
 
 (A) In general. — Except as provided in subparagraph (B), the period for 
 which interest shall be paid under paragraph (1) is the period beginning on 
 the 30th day following the date on which the claim is presented to the re- 
 sponsible party or guarantor and ending on the date on which the claim is 
 paid. 
 
 (B) Exclusion of period due to offer by guarantor. — If the guarantor 
 offers to the claimant an amount equal to or greater than that finally paid 
 in satisfaction of the claim, the period described in subparagraph (A) shall 
 not include the period beginning on the date such offer is made and ending 
 on the date such offer is accepted. If such offer is made within 60 days after 
 the date upon which the claim is presented pursuant to section 104(a), the 
 period described in subparagraph (A) shall not include any period before 
 such offer is accepted. 
 
 (C) Exclusion of periods in interest of justice. — If, in any period, a 
 claimant is not paid due to reasons beyond the control of the responsible 
 party or because it would not serve the interest of justice, no interest shall 
 accrue under this subsection during such period. 
 
 (D) Calculation of interest. — The interest paid under this subsection 
 shall be calculated at the average of the highest rate for commercial and 
 finance company paper of maturities of 180 days or less obtaining on each 
 of the days included within the period for which interest must be paid to 
 the claimant, as published in the Federal Reserve bulletin. 
 
 (E) Interest not subject to liability limits. — Interest under this para- 
 graph shall be in addition to damages for which claims may be asserted 
 under section 102 and shall be paid without regard to any limitation of li- 
 ability under subsection (c) of this section. The payment of interest under 
 this subsection by a guarantor shall be subject to section 107(e). 
 
 (e) Natural Resources.— 
 
 (1) Liability. — In the case of an injury to, destruction of, or loss of natural 
 resources under this section, liability shall be — 
 
 (A) to the United States Government for natural resources belonging to, 
 managed by, controlled by, or appertaining to the United States, 
 
 (B) to any State for natural resources within the State or belonging to, 
 managed by, controlled by, or appertaining to such State, 
 
 (C) to any Indian tribe for natural resources belonging to, managed by, 
 controlled by, or appertaining to such Indian tribe, and 
 
 (D) in any case in which subsection (f) of this section (relating to recovery 
 by foreign claimants) applies, to the government of a foreign country for 
 natural resources belonging to, managed by, controlled by, or appertaining 
 to such country. 
 
 (2) Designation of trustees. — 
 
 (A) In general. — The President, or the authorized representative of any 
 State, Indian tribe, or foreign government, shall act on behalf of the public 
 or Indian tribe as trustee of the natural resources to recover damages to 
 the natural resources. 
 
 (B) Federal trustees. — The President shall designate the Federal offi- 
 cials who shall act on behalf of the public as trustees for natural resources 
 under this Act. 
 
 (C) State trustees.— The Governor of each State shall designate State 
 and local officials who may act on behalf of the public as trustee for natu- 
 
8 
 
 ral resources under this Act and shall notify the President of such designa- 
 tion. 
 
 (D) Indian tribe trustees.— The governing body of any Indian tribe shall 
 designate tribal officials who may act on behalf of the tribe or its members 
 as trustee for natural resources under this Act and shall notify the Presi- 
 dent of such designation. 
 
 (3) Functions of trustees.— 
 
 (A) Federal trustees.— The officials designated under paragraph (2)(B)— 
 (i) shall assess damages for injury to, destruction of, or loss of natural 
 
 resources for purposes of this Act for the natural resources under their 
 trusteeship; 
 
 (ii) may, upon request of and reimbursement from a State or Indian 
 tribe and at the Federal officials' discretion, assess damages for the 
 natural resources under the State's or tribe's trusteeship; and 
 
 (iii) shall develop and implement a plan for the restoration, rehabili- 
 tation, 
 
 replacement, or acquisition of the equivalent, of the natural resources 
 under their trusteeship. 
 
 (B) State trustees. — The officials designated under paragraph (2)(C) — 
 
 (i) shall assess damages to natural resources for the purposes of this 
 Act for the natural resources under their trusteeship; and 
 
 (ii) shall develop and implement a plan for the restoration, rehabili- 
 tation, replacement, or acquisition of the equivalent, of the natural re- 
 sources under their trusteeship. 
 
 (C) Indian tribe trustees. — The officials designated under paragraph 
 (2)(D)- 
 
 (i) shall assess damages to natural resources for the purposes of this 
 Act for the natural resources under their trusteeship; and 
 
 (ii) shall develop and implement a plan for the restoration, rehabili- 
 tation, replacement, or acquisition of the equivalent, of the natural re- 
 sources under their trusteeship. 
 
 (D) Notice and opportunity to be heard. — Plans shall be developed and 
 implemented under subparagraphs (A)(iii), (B)(ii), and (C)(ii) only after ade- 
 quate public notice, opportunity for a hearing, and consideration of all 
 public comment. 
 
 (4) Measure of damages. — 
 
 (A) In general. — The measure of damages in any action under this sec- 
 tion for injury to, destruction of, or loss of natural resources shall be — 
 
 (i) the costs of restoring, rehabilitating, replacing, or acquiring the 
 equivalent of, the damaged natural resources; and 
 
 (ii) the value of the lost public uses of such resources in the period 
 beginning on the date the damage occurs and ending on (I) the date 
 such resources are restored, rehabilitated, or replaced or the equivalent 
 is acquired, or (II) the date on which it is determined that such re- 
 sources cannot be restored, rehabilitated, or replaced or no equivalent 
 can be acquired. 
 
 (B) Determine costs with respect to plans. — Costs shall be determined 
 under subparagraph (A) with respect to plans adopted under paragraph 
 (3)(A), (B), and (C). 
 
 (C) No double recovery. — There shall be no double recovery under this 
 Act for natural resource damages, including the costs of damage assessment 
 or restoration, rehabilitation, replacement, or acquisition for the same inci- 
 dent and natural resource. 
 
 (5) Damage assessment regulations and study. — 
 
 (A) Regulations. — Not later than 2 years after the date of the enactment 
 of this Act, the President shall issue regulations, consistent with paragraph 
 (4)(A), for the assessment of damages to natural resources arising out of an 
 incident. 
 
 (B) Rebuttable presumption. — Any determination or assessment of dam- 
 ages to natural resources for the purposes of this Act made pursuant to 
 paragraph (4)(A)(i) by a Federal, State, or Indian tribe trustee in accordance 
 with the regulations issued under subparagraph (A) shall have the force 
 and effect of a rebuttable presumption on behalf of the trustee in any ad- 
 ministrative or judicial proceeding under this Act. 
 
 (C) Study.— The President shall conduct a study of techniques and meth- 
 ods of valuing natural resource damages. Not later than 1 year after the 
 
date of the enactment of this Act, the President shall transmit to Congress 
 a report on the results of such study. 
 
 (6) Use of recovered sums. — Sums recovered under this Act by a Federal, 
 State, or Indian tribe trustee for damages to natural resources shall be retained 
 by the trustee for use only to reimburse or pay costs incurred by the trustee 
 under paragraph (3) with respect to the damaged natural resources. Any 
 amounts in excess of those required for these reimbursements and costs shall be 
 deposited in the Fund. 
 
 (7) Civil penalty.— 
 
 (A) In general. — Any responsible party liable under this section for dam- 
 ages resulting from a discharge of oil shall be subject to a civil penalty not 
 to exceed the greater of $1,000,000 or 1/2 of the responsible party's liability 
 under this section if the discharge results in damages to natural resources 
 which cannot be restored, rehabilitated, or replaced and for which no equiv- 
 alent can be acquired. 
 
 (B) Assessment, settlement, and collection. — The President or author- 
 ized representative of a State or Indian tribe, acting under this section as 
 trustee, may request the Attorney General to bring an action in court to 
 recover from the responsible party a civil penalty under this paragraph. In 
 determining the amount of a civil penalty under this paragraph, the court 
 shall consider the nature and extent of the damages to natural resources, 
 the value of the natural resources, the degree of culpability of the person 
 held liable for the discharge, and the nature and extent of efforts taken by 
 the person to prevent and mitigate damages to natural resources and to re- 
 store damaged natural resources. 
 
 (C) Separate liability. — Except as provided in section 302, any liability 
 for a civil penalty under this paragraph shall be separate from and in addi- 
 tion to any liability for a discharge of oil under this section. 
 
 (D) Payment to trustee for ecosystem enhancement. — Subject to ap- 
 propriation Acts, sums received under this paragraph shall be paid to the 
 trustee to be used for the general enhancement of the ecosystem of which 
 the destroyed natural resources were a part for the purpose of restoring 
 and maintaining the chemical, physical, and biological integrity of such eco- 
 system. 
 
 (0 Recovery by Foreign Claimants.— 
 
 (1) In general. — A foreign claimant may recover removal costs and damages 
 under this Act only in accordance with this subsection. 
 
 (2) Covered discharges. — A foreign claimant may recover only if the dis- 
 charge of oil was from — 
 
 (A) a facility, 
 
 (B) a vessel in the navigable waters of the United States, or 
 
 (C) a tanker carrying oil originally received at the terminal of the pipe- 
 line constructed under the Trans-Alaska Pipeline Authorization Act for 
 transportation to a port in the United States and the incident occurred 
 prior to delivery to such port, 
 
 and resulted in the presence of oil in or on the territorial sea, internal waters, 
 or adjacent shoreline of a foreign country. 
 
 (3) Requirements. — A foreign claimant may recover only if— 
 
 (A) the claimant first seeks compensation under title III; 
 
 (B) the claimant has not been otherwise compensated for the removal 
 costs or damages; and 
 
 (C) recovery is authorized by a treaty or executive agreement between the 
 United States and the claimant's country, or the Secretary of State, in con- 
 sultation with the Attorney General and other appropriate officials, has 
 certified that the claimant's country provides a comparable remedy for 
 United States claimants. 
 
 (4) Exception for Canadian claimants respecting trans-alaska pipeline 
 oil. — Paragraph (3)(C) shall not apply with respect to recovery by a resident of 
 Canada in the case of an incident described in paragraph (2)(C). 
 
 (5) Foreign claimant defined. — For purposes of this subsection, the term 
 "foreign claimant" means any person residing in a foreign country, the govern- 
 ment of a foreign country, or any agency or political subdivision of a foreign 
 country. 
 
 (g) Recovery of Removal Costs and Damages by Responsible Party. — 
 
 (1) In general. — The responsible party for a vessel or facility from which oil 
 is discharged, or which poses the substantial threat of a discharge of oil, may 
 
10 
 
 assert a claim for removal costs and damages under subsection (a) only if the 
 responsible party establishes that — 
 
 (A) the responsible party is entitled to a defense to liability under subsec- 
 tion (b), or 
 
 (B) the responsible party is entitled to a limitation of liability under sub- 
 section (c). 
 
 (2) Extent of recovery.— A responsible party who is entitled to a limitation 
 of liability may assert a claim under paragraph (1) of subsection (a) only to the 
 extent that the sum of the removal costs and damages incurred by the responsi- 
 ble party plus the amounts paid by the responsible party or by the guarantor on 
 behalf of the responsible party for claims asserted under subsection (a) exceeds 
 the amount to which the total of the liability under subsection (a) and removal 
 costs and damages incurred by, or on behalf of, the responsible party is limited 
 under subsection (c). 
 (h) Contribution. — A person may bring an action for contribution against any 
 other person who is liable or potentially liable under this section. Such an action 
 shall be brought in accordance with section 108. 
 (i) Indemnification Agreements.— 
 
 (1) In general. — No indemnification, hold harmless, or similar agreement or 
 conveyance shall be effective to transfer any liability imposed under this section 
 from any responsible party for any vessel or facility or from any person who 
 may be liable for an incident under this section to any other person. Nothing in 
 this subsection shall bar any agreement to insure, hold harmless, or indemnify 
 a party to such agreement for any liability under this section. 
 
 (2) Relationship to other causes of action. — Nothing in this Act, including 
 the provisions of paragraph (1) of this subsection, shall bar a cause of action 
 that a responsible party subject to liability under this section, or a guarantor, 
 has or would have, by reason of subrogation or otherwise against any person. 
 
 (j) Consultation on Removal Actions. — The Secretary shall consult with the af- 
 fected trustees designated under section 102(e)(2) on the appropriate removal action 
 to be taken in connection with any discharge of oil. Removal with respect to any 
 discharge shall be considered completed when so determined by the Secretary in 
 consultation with the Governor or Governors of the affected State or States and in 
 accordance with the national contingency plan. 
 
 SEC. 103. USES OF THE FUND. 
 
 (a) In General. — 
 
 (1) Uses.— The Fund shall be available to the Secretary for— 
 
 (A) the payment of removal costs, and the costs of monitoring removal 
 actions, incurred by Federal authorities; 
 
 (B) the costs incurred by Federal, State or Indian tribe trustees in carry- 
 ing out their functions under section 102(e) for assessing damages to natu- 
 ral resources and for developing and implementing plans for the restora- 
 tion, rehabilitation, replacement, or acquisition of the equivalent, of dam- 
 aged resources; 
 
 (C) the payment of obligations under subsection (e) of this section; 
 
 (D) the payment of removal costs and damages resulting from the dis- 
 charge, or substantial threat of discharge, of oil from a foreign offshore 
 unit; 
 
 (E) the payment of personnel, equipment, and training costs associated 
 with the maintenance of the strike forces authorized under section 311(c) of 
 the Federal Water Pollution Control Act; 
 
 (F) the payment of administrative and personnel costs and expenses rea- 
 sonably necessary for and incidental to the implementation and administra- 
 tion of this Act; and 
 
 (G) the payment of contributions to the International Fund under title III 
 of this Act. 
 
 (2) Settlement of claims.— The Fund shall also be available to the Secretary 
 for the payment of otherwise uncompensated claims for removal costs and dam- 
 ages in accordance with section 104. 
 
 (b) Defenses to Liability for the Fund. — The Fund shall not be available to pay 
 any claim for removal costs or damages — 
 
 (1) to a claimant if the incident or economic loss is caused, in whole or in 
 part, by the gross negligence or willful misconduct of the claimant; or 
 
 (2) to a claimant to the extent that the incident or economic loss is caused by 
 the negligence of the claimant. 
 
11 
 
 (c) Maximum Amount Payable From Fund. — The maximum amount which may 
 be paid from the Fund with respect to any incident in combination with payment, if 
 any, under the International Convention on the Establishment of an International 
 Fund for Compensation of Oil Pollution Damage, 1984 shall not exceed 
 $1,000,000,000. The President may increase the maximum amount with respect to 
 the incident if the President determines that such increase is necessary and in the 
 best interests of the United States. The authority granted the President under this 
 subsection may not be delegated. 
 
 (d) Federal and State Officials Who May Obligate From the Fund. — The Sec- 
 retary is authorized to issue regulations designating 1 or more Federal officials who 
 may obligate money in the Fund in accordance with subsection (a) of this section or 
 portions thereof. The Secretary shall designate the Commandant of the Coast Guard 
 to be a Federal official who may obligate money in the Fund in accordance with 
 subsection (a). The Secretary is also authorized to delegate authority to obligate 
 money in the Fund or to settle claims to officials of a State with an adequate pro- 
 gram operating under a cooperative agreement with the Federal Government. 
 
 (e) Obligation of the Fund by State Officials. — 
 
 (1) Authority. — In accordance with regulations issued under this subsection, 
 the Governor of each State, or any appropriate State official designated by the 
 Governor, is authorized to obligate the Fund for payment in an amount not to 
 exceed $250,000 for removal costs not inconsistent with the national contingen- 
 cy plan required for the immediate response to an incident. 
 
 (2) Notification. — A Governor or designee exercising the authority granted 
 by this subsection shall notify the Secretary within 24 hours after any obliga- 
 tion of a payment from the Fund. 
 
 (3) Regulations. — Not later than 6 months after the date of the enactment of 
 this Act, the Secretary shall publish proposed regulations detailing the manner 
 in which the authority to obligate the Fund and to enter into agreements under 
 this subsection is to be exercised, and, not later than 3 months after the last 
 day of the comment period on such proposed regulations, the Secretary shall 
 issue the regulations. 
 
 (f) Rights of Subrogation. — Payment of any claim by the Fund under this Act 
 shall be subject to the United States Government acquiring by subrogation all 
 rights of the claimant to recover from the responsible party. 
 
 (g) Audit. — The Comptroller General shall provide an audit review team to audit 
 all payments, obligations, reimbursements, or other uses of the Fund to assure that 
 the Fund is being properly administered and that claims are being appropriately 
 and expeditiously considered. The Comptroller General shall submit to Congress an 
 interim report 1 year after the date of the establishment of the Fund. The Comptrol- 
 ler General shall thereafter provide such auditing of the Fund as is appropriate. 
 Each Federal agency shall cooperate with the Comptroller General in carrying out 
 this subsection. 
 
 (h) Period of Limitations for Claims — 
 
 (1) Removal costs. — No claim may be presented under this section for recov- 
 ery of removal costs with respect to an incident unless the claim is presented 
 within 3 years after the date of completion of all removal action with respect to 
 the incident. 
 
 (2) Damages. — No claim may be presented under this section for recovery of 
 damages with respect to an incident unless the claim is presented within 3 
 years after the date on which the loss and its connection with the incident were 
 reasonably discoverable with the exercise of due care or, in the case of damages 
 to natural resources under section 102(a)(2), if later, the date on which final reg- 
 ulations are issued under section 102(e)(5). 
 
 (i) Limitation on Payment for Same Costs. — Where the Secretary has paid an 
 amount out of the Fund for any costs or damages specified under subsection (a), no 
 other claim may be paid out of the Fund for the same costs or damages. 
 
 (j) Obligation in Accordance With Plan.— 
 
 (1) In general. — Except as provided in paragraph (2), amounts may be obli- 
 gated from the Fund for the restoration, rehabilitation, replacement, or acquisi- 
 tion of the equivalent of, natural resources only in accordance with a plan 
 adopted under section 102(e)(3). 
 
 (2) Exception. — Paragraph (1) shall not apply in a situation requiring action 
 to avoid irreversible loss of natural resources or to prevent or reduce any con- 
 tinuing danger to natural resources or similar need for emergency action. 
 
12 
 
 SEC. 104. CLAIMS PROCEDURE. 
 
 (a) Presentation to Responsible Party or Guarantor.— Except as provided in 
 subsection (b), all claims for removal costs or damages shall be presented first to the 
 responsible party or the responsible party's guarantor for the source designated 
 under section 105(a). 
 
 (b) Presentation to Fund. — Claims for removal costs or damages may be present- 
 ed first to the Fund— 
 
 (1) in any case in which the Secretary has advertised or otherwise notified 
 claimants in accordance with section 105(c); 
 
 (2) by a responsible party who may assert a claim under section 102(g); 
 
 (3) by the Governor of a State for removal costs incurred by the State; or 
 
 (4) by a United States claimant in a case in which a foreign offshore unit has 
 discharged oil causing damage for which the Fund is liable under section 
 103(a)(1)(D). 
 
 (c) Election. — If a claim is presented in accordance with subsection (a) and — 
 
 (1) each person to whom the claim is presented denies all liability for the 
 claim, or 
 
 (2) the claim is not settled by any person by payment within 180 days after 
 the date on which (A) the claim was presented, or (B) advertising was begun 
 pursuant to section 105(b), whichever is later, 
 
 the claimant may elect to commence an action in court against the responsible 
 party or guarantor or to present the claim to the Fund. 
 
 (d) Uncompensated Damages. — If a claim is presented in accordance with subsec- 
 tion (a) and full and adequate compensation is unavailable, either because the claim 
 exceeds a limit of liability under section 102 or because the responsible party and 
 his guarantor are financially incapable of meeting or unwilling to meet their obliga- 
 tions in full, a claim for the uncompensated damages may be presented to the Fund. 
 
 (e) Procedure for Claims Against the Fund. — The Secretary shall issue, and 
 may from time to time amend, regulations for the presentation, filing, processing, 
 settlement, and adjudication of claims under this Act against the Fund. 
 
 SEC. 105. DESIGNATION, NOTIFICATION, AND ADVERTISEMENT. 
 
 (a) Designation of Source and Notification. — After receiving information of an 
 incident, the Secretary shall, where possible and appropriate, designate the source 
 or sources of the discharge. If a designated source is a vessel or a facility, the Secre- 
 tary shall immediately notify the responsible party and the responsible party's 
 guarantor, if known, of such designation. 
 
 (b) Advertisement by the Responsible Party or Guarantor. — If a responsible 
 party or guarantor does not inform the Secretary, within 5 days after receiving noti- 
 fication of a designation under subsection (a), of his or her denial of the designation, 
 such party or guarantor shall advertise the designation and the procedures by 
 which claims may be presented to such party or guarantor, in accordance with regu- 
 lations issued by the Secretary. Advertisement under the preceding sentence shall 
 begin no later than 15 days after the date of the designation made under subsection 
 (a). If advertisement is not otherwise made in accordance with this subsection, the 
 Secretary shall promptly and at the expense of the responsible party or the guaran- 
 tor, advertise the designation and the procedures by which claims may be presented 
 to the responsible party or guarantor. Advertisement under this subsection shall 
 continue for a period of no less than thirty days. 
 
 (c) Advertisement by the Secretary. — If— 
 
 (1) the responsible party and the guarantor both deny a designation within 5 
 days after receiving notification of a designation under subsection (a), 
 
 (2) the source of the oil discharge was a public vessel, or 
 
 (3) the Secretary is unable to designate the source or sources of the oil dis- 
 charge under subsection (a), 
 
 the Secretary shall advertise or otherwise notify potential claimants of the proce- 
 dures by which claims may be presented to the Fund. 
 
 SEC. 106. SUBROGATION. 
 
 (a) In General. — Any person, including the Fund, who pays compensation pursu- 
 ant to this Act to any claimant for costs or damages shall be subrogated to all 
 rights, claims, and causes of action which the claimant has under this Act. 
 
 (b) Actions on Behalf of the Fund. — Upon request of the Secretary, the Attor- 
 ney General shall commence an action on behalf of the Fund to recover any com- 
 pensation paid by the Fund to any claimant pursuant to this Act, and all costs in- 
 curred by the Fund allocable to the claim, including prejudgment and other inter- 
 est, administrative and adjudicative costs, and attorney's fees. Such an action may 
 be commenced against any responsible party or (subject to section 107(e)) guarantor, 
 
13 
 
 or against any other person who is liable, pursuant to any law, to the compensated 
 claimant or to the Fund, for the cost or damages for which the compensation was 
 paid. Such an action shall be commenced against the responsible foreign govern- 
 ment or other responsible party to recover any removal costs or damages paid from 
 the Fund as the result of the discharge, or substantial threat of discharge, of oil 
 from a foreign offshore unit. 
 
 SEC. 107. FINANCIAL RESPONSIBILITY. 
 
 (a) Vessels. — 
 
 (1) Requirement. — The responsible party for — 
 
 (A) any vessel over 300 gross tons (except a non-self-propelled vessel 
 which does not carry oil as cargo or fuel) using any port or place in the 
 United States or the navigable waters, or 
 
 (B) any vessel using the waters of the exclusive economic zone to trans- 
 ship or lighter oil destined for a port or place subject to the jurisdiction of 
 the United States, 
 
 shall establish and maintain, in accordance with regulations issued by the Sec- 
 retary, evidence of financial responsibility sufficient to meet the maximum 
 amount of liability to which, in the case of a tanker, the responsible party could 
 be subjected under section 102(c)(1)(A) of this Act, or to which, in the case of any 
 other vessel, the responsible party could be subjected under section 102(c)(1)(B) 
 of this Act, in any case in which the responsible party would be entitled to limit 
 liability under such section. If the responsible party owns or operates more than 
 one vessel, evidence of financial responsibility need be established only to meet 
 the maximum liability applicable to the largest of such vessels. 
 
 (2) Withholding clearance. — The Secretary of the Treasury shall withhold 
 or revoke the clearance required by section 4197 of the Revised Statutes of the 
 United States (46 U.S.C. App. 91) of any vessel subject to this subsection that 
 does not have the certification required under this subsection. 
 
 (3) Denying entry and detaining vessels. — The Secretary may (A) deny 
 entry to any offshore facility or any port or place in the United States or to the 
 navigable waters, or (B) detain at such a facility or port or place, any vessel 
 which, upon request, does not produce the certification required under this sub- 
 section or the regulations issued under this subsection. 
 
 (b) Offshore Facilities. — Each responsible party with respect to an offshore facil- 
 ity shall establish and maintain evidence of financial responsibility sufficient to 
 meet the maximum amount of liability to which the responsible party could be sub- 
 jected under section 102 in any case in which the responsible party would be enti- 
 tled to limit liability under section 102. In any case in which a person is the respon- 
 sible party for more than one facility subject to this subsection, evidence of financial 
 responsibility need be established only to meet the maximum liability applicable to 
 one such facility. 
 
 (c) Methods of Financial Responsibility. — Financial responsibility under this 
 section may be established by any one or any combination of the following methods 
 which the Secretary determines to be acceptable: evidence of insurance, surety 
 bond, guarantee, letter of credit, qualification as a self-insurer, or other evidence of 
 financial responsibility. Any bond filed shall be issued by a bonding company au- 
 thorized to do business in the United States. In establishing requirements under 
 this section, the Secretary is authorized to specify policy or other contractual terms, 
 conditions, or defenses which are necessary, or which are unacceptable, in establish- 
 ing evidence of financial responsibility in order to effectuate the purposes of this 
 Act. 
 
 (d) Claims Against Guarantor. — Any claim for which liability may be estab- 
 lished under section 102 against a responsible party may be asserted directly 
 against any guarantor providing evidence of financial responsibility for such respon- 
 sible party. In defending against such a claim, the guarantor may invoke all rights 
 and defenses which would be available to the responsible party under section 102. 
 The guarantor may also invoke the defense that the incident was caused by the will- 
 ful misconduct of the responsible party, but the guarantor may not invoke any 
 other defense that might be available in proceedings brought by the responsible 
 party against the guarantor. 
 
 (e) Limitation on Guarantor's Liability. — Nothing in this Act shall impose li- 
 ability with respect to an incident on any guarantor for damages or removal costs 
 which exceeds, in the aggregate, the amount of financial responsibility required 
 under this Act which the guarantor has provided for the responsible party for any 
 vessel or facility which was a source or cause of the incident. 
 
 (0 Civil Penalty.— 
 
14 
 
 (1) In general. — Any person who, after notice and an opportunity for a hear- 
 ing, is found to have failed to comply with the requirements of this section or 
 the regulations issued under this section, or with a denial or detention order 
 issued under subsection (a)(3) of this section, shall be liable to the United States 
 for a civil penalty, not to exceed $25,000 per day of violation. 
 
 (2) Notice. — The amount of the civil penalty under this subsection shall be 
 assessed by the Secretary by written notice. 
 
 (3) Factors to consider. — In determining the amount of a civil penalty under 
 this subsection, the Secretary shall take into account the nature, circumstances, 
 extent, and gravity of the violation, the degree of culpability, any history of 
 prior violation, ability to pay, and such other matters as justice may require. 
 
 (4) Compromise. — The Secretary may compromise, modify, or remit, with or 
 without conditions, any civil penalty which is subject to imposition or which has 
 been imposed under this subsection. 
 
 (5) Collection. — If any person fails to pay a civil penalty assessed under this 
 subsection after it has become final, the Secretary may refer the matter to the 
 Attorney General for collection. 
 
 (6) Judicial relief. — In addition to, or in lieu of, assessing a penalty under 
 this subsection, the Secretary may request the Attorney General to secure such 
 relief as necessary to compel compliance with this section, including a judicial 
 order terminating operations. The district courts of the United States shall have 
 jurisdiction to grant such relief as the public interest and the equities of the 
 case may require. 
 
 (g) Continuation of Regulations. — Any regulation respecting financial responsi- 
 bility which has been issued pursuant to any provision of law repealed or supersed- 
 ed by this Act and which is in effect on the date immediately preceding the effective 
 date of this Act shall be deemed and construed to be a regulation issued pursuant to 
 this section. Such a regulation shall remain in full force and effect unless and until 
 superseded by new regulations issued under this section. 
 
 (h) Unified Certificate. — The Secretary may issue to a responsible party one cer- 
 tificate of financial responsibility for purposes of meeting the financial responsibil- 
 ity requirements of this Act and any other law. 
 
 SEC. 108. LITIGATION, JURISDICTION, AND VENUE. 
 
 (a) Review of Regulations. — Review of any regulation issued under this Act may 
 be had upon application by any interested person only in the Court of Appeals for 
 the District of Columbia Circuit. Any such application shall be made within 90 days 
 after the date of issuance of such regulation. 
 
 (b) Jurisdiction.— Except as provided in subsection (a), the district courts shall 
 have original jurisdiction, without regard to the citizenship of the parties or the 
 amount in controversy, over any civil action under this Act, including any action 
 under the International Convention on Civil Liability for Oil Pollution Damages, 
 1984 or the International Convention on the Establishment of an International 
 Fund for Compensation for Oil Pollution Damage, 1984. 
 
 (c) Venue.— A civil action under subsection (b) may be brought in any district in 
 which — 
 
 (1) the incident, injury, or damages occurs; or 
 
 (2) the defendant resides, may be found, has its principal office, or has ap- 
 pointed an agent for service of process. 
 
 For purposes of this section, the Fund and the International Fund established under 
 Article 2 of the International Convention on the Establishment of an International 
 Fund for Compensation for Oil Pollution Damage, 1984, reside in the District of Co- 
 lumbia. 
 
 (d) Savings Provision.— Nothing in this Act shall affect any action commenced 
 before the date of the enactment of this Act. 
 
 (e) Period of Limitations. — 
 
 (1) Damages.— Except as provided in paragraphs (3) and (4), a civil action for 
 damages under this Act, shall be barred unless the action is brought within 3 
 years after — 
 
 (A) the date on which the loss and the connection of the loss with the 
 discharge in question are reasonably discoverable with the exercise of due 
 care, or 
 
 (B) in the case of damages described in section 102(a)(2)(B)(i), the date on 
 which regulations are issued under section 102(e)(5), if that date is later 
 than the date referred to in subparagraph (A). 
 
 (2) Removal costs.— Except as provided in paragraphs (3) and (4), a civil 
 action for recovery of removal costs under this Act shall be barred unless the 
 
15 
 
 action is brought within 3 years after completion of the removal. An action may 
 be commenced under section 102 for recovery of removal costs at any time after 
 such costs have been incurred. 
 
 (3) Contribution. — A civil action for contribution for any removal costs or 
 damages shall be barred unless the action is brought within 3 years after — 
 
 (A) the date of judgment in any action under this Act for recovery of the 
 costs or damages, or 
 
 (B) the date of entry of a judicially approved settlement with respect to 
 the costs or damages. 
 
 (4) Subrogation. — A civil action based on rights subrogated pursuant to this 
 Act by reason of payment of a claim shall be barred unless the action is com- 
 menced within 3 years after the date of payment of the claim. 
 
 SEC. 109. RELATIONSHIP TO OTHER LAW. 
 
 (a) Preemption. — 
 
 (1) Actions preempted. — Except as provided in this Act, no action arising out 
 of a discharge of oil, or a substantial threat of a discharge of oil, from a vessel 
 or facility into or upon the navigable waters or adjoining shorelines or the 
 waters of the exclusive economic zone (other than an action for personal injury 
 or wrongful death), may be brought in any court of the United States or of any 
 State or political subdivision thereof. 
 
 (2) State funds and accounts. — Nothing in this Act or in sections 4611 and 
 9509 of the Internal Revenue Code of 1986 shall affect the authority of any 
 State (A) to establish or continue in effect an oil spill fund or account; or (B) to 
 require any person to contribute to that fund or account. However, if the State 
 fund or account is supported by contributions levied upon persons who contrib- 
 ute to the Fund established by section 9509 of such Code, the State fund or ac- 
 count may not be used to compensate any person for damages under this Act. 
 
 (b) No Preemption of Penalties. — Nothing in this Act or section 9509 of the In- 
 ternal Revenue Code of 1986 shall affect the authority of the United States or any 
 State or political subdivision thereof to impose, or to determine the amount of, any 
 fine or penalty for any violation of law relating to an incident. 
 
 (c) Financial Responsibility. — Except as provided in this Act, a responsible party 
 for a vessel or facility who establishes and maintains evidence of financial responsi- 
 bility in accordance with this title shall not be required under any State or local 
 law, rule, or regulation to establish or maintain any other evidence of financial re- 
 sponsibility in connection with liability for the discharge, or substantial threat of a 
 discharge, of oil from such vessel or facility. Evidence of compliance with the finan- 
 cial responsibility requirements of this title shall be accepted by a State in lieu of 
 any other requirement of financial responsibility imposed by such State in connec- 
 tion with liability for the discharge of oil from such vessel or facility. A State may 
 enforce, on the navigable waters of the State, the requirements for evidence of fi- 
 nancial responsibility imposed under section 107 of this Act. 
 
 (d) Limitation of Liability Act.— The Act entitled "An Act to limit the liability 
 of ship owners, and for other purposes", approved March 3, 1851 (9 Stat. 635), shall 
 not apply to removal costs which arise out of or directly result from, and damages 
 which are proximately caused by, an incident involving the discharge or substantial 
 threat of discharge of oil. 
 
 SEC no. regulations. 
 
 The Secretary shall issue such regulations as may be necessary to carry out this 
 title. 
 
 SEC 111. effective date. 
 
 (a) In General. — Except as provided in subsection (b), this title shall apply with 
 respect to an incident occurring after the date of the enactment of this Act. 
 
 (b) Payments From Fund. — Payments under section 103(a) may not be made 
 before the commencement date (as such term is defined in section 4611(f)(2) of the 
 Internal Revenue Code of 1986). 
 
 TITLE II— PREVENTION AND RESPONSE 
 
 SEC. 201. authority to direct responses. 
 
 (a) General Rule. — In the event of a discharge of oil or a substantial threat of 
 discharge of oil into or upon navigable waters or adjoining shorelines or the waters 
 of the exclusive economic zone, the Secretary or the Administrator of the Environ- 
 mental Protection Agency, as determined by the President, shall assume the direc- 
 
16 
 
 tion of all Federal, State, and private activities regarding the containment, cleanup, 
 removal, and other responses to the discharge or threat of discharge. 
 
 (b) Limitation on Statutory Construction. — Nothing in this section shall be 
 construed as affecting the assessment of liability under this Act with respect to the 
 discharge or substantial' threat of discharge of oil and shall be construed as affecting 
 or diminishing the authority of the President under section 311(c)(1) of the Federal 
 Water Pollution Control Act, relating to removal of discharged oil. 
 
 SEC. 202. RESPONSE PLANS. 
 
 (a) Designation. — 
 
 (1) Deadline. — Not later than 180 days after the date of the enactment of this 
 Act, the Secretary or the Administrator of the Environmental Protection 
 Agency, as determined by the President, shall designate those areas for which 
 plans for responding to discharges and substantial threats of discharges of oil 
 are required to be prepared under this section, the persons (including Federal, 
 State, and local officials) who are required to prepare such plans, and the per- 
 sons who are required to pay for the preparation of such plans. 
 
 (2) Consultation. — In designating areas for which plans are required to be 
 prepared under this section and the persons to be required to prepare such 
 plans, the Secretary or the Administrator, as the case may be, shall consult con- 
 cerned State officials. 
 
 (b) Criteria for Designation of Areas. — In determining those areas for which 
 plans for responding to discharges and substantial threats of discharges of oil are 
 required to be prepared under this section, the Secretary or the Administrator of 
 the Environmental Protection Agency, as the case may be, shall consider the follow- 
 ing: 
 
 (1) The likelihood of a discharge or substantial threat of a discharge of oil in 
 the area. 
 
 (2) The likelihood of significant adverse effects resulting from discharges or 
 substantial threats of discharges of oil in the area. 
 
 (3) The amount and type of oil handled, stored, or processed in the area. 
 
 (4) The presence of natural resources in the area which are likely to be dam- 
 aged by a discharge of oil and the value, uniqueness, and susceptibility of such 
 resources to damage by such discharge. 
 
 (5) The geographic, topographic, weather, and other conditions which might 
 influence the frequency, severity, and effects of oil discharges and responses 
 thereto. 
 
 (c) Preparation of Plans.— 
 
 (1) Deadline.— Not later than 180 days after the date of designation of an 
 area under subsection (a), the persons designated under subsection (a) shall pre- 
 pare and submit, in writing, to the Secretary or the Administrator of the Envi- 
 ronmental Protection Agency, as the case may be, for approval a plan for re- 
 sponding to discharges and substantial threats of discharges of oil in the area. 
 Plans approved under this section must be reviewed on a periodic basis. 
 
 (2) Contents.— Each response plan prepared under this section shall include 
 the following: 
 
 (A) A description of the general area in which response actions will be 
 required to be taken pursuant to the plan. 
 
 (B) The responsibilities of responsible parties, State and local govern- 
 ments, and others in responding to discharges and substantial threats of 
 discharges of oil. 
 
 (C) Such other matters as the Secretary or the Administrator, as the case 
 may be, may require. 
 
 (3) Consultation requirement. — Concerned States and local governments 
 shall be consulted in the preparation of each plan under this subsection. 
 
 (4) Technical assistance. — The Secretary or the Administrator, as the case 
 may be, may provide technical assistance in the preparation of a response plan 
 under this subsection. 
 
 (d) Funding.— All expenses incurred by the Secretary, and all expenses incurred 
 by the Administrator of the Environmental Protection Agency, in carrying out this 
 section shall be paid for out of the Fund. 
 
 SEC 203. REVIEW AND REVISION OF RESPONSE CAPABILITY. 
 
 (a) Evaluation. — 
 
 (1) In general.— Not later than 6 months after the date of enactment of this 
 Act, the Secretary or the Administrator of the Environmental Protection 
 Agency, as determined by the President, shall conduct an evaluation of the 
 status and effectiveness of personnel and equipment for responding to dis- 
 
17 
 
 charges of oil or substantial threats of discharges of oil into or upon the naviga- 
 ble waters and adjoining shorelines and the waters of the exclusive economic 
 zone. The evaluation shall determine, on a regional basis, whether or not exist- 
 ing personnel and equipment are sufficient for responding to such discharges or 
 threats in an effective and timely manner and the need for teams (including 
 necessary equipment, personnel, and vessels) to respond to and minimize 
 damage from those discharges or substantial threats of discharges occurring in 
 the general regions of Alaska, the Pacific Northwest, California, the Gulf of 
 Mexico, the Great Lakes, the North Atlantic, the South Atlantic, Hawaii, and 
 inland waters of the United States. 
 
 (2) Report. — Not later than 1 year after the date of the enactment of this Act, 
 the Secretary and the Administrator shall each submit a report to Congress 
 based on the findings of their respective evaluations conducted under this sub- 
 section, together with recommendations. 
 
 (b) Training. — Not later than 1 year after the date of the enactment of this Act, 
 the Secretary or the Administrator of the Environmental Protection Agency, as de- 
 termined by the President, shall revise the national contingency plan issued under 
 section 311(c)(2) of the Federal Water Pollution Control Act and shall issue such reg- 
 ulations as may be necessary, to require oil response personnel to be subjected to — 
 
 (1) training approved by the Secretary or the Administrator, as the case may 
 be; and 
 
 (2) periodic drills, without prior notice, to demonstrate the continued effec- 
 tiveness and readiness of oil response teams. 
 
 (c) Certification. — Not later than 6 months after the date of the submission of 
 the report under subsection (a), the Secretary or the Administrator of the Environ- 
 mental Protection Agency, as the case may be, shall issue regulations requiring in- 
 spection of equipment for responding to discharges of oil and substantial threats of 
 discharges of oil into the navigable waters and adjoining shorelines and the waters 
 of the exclusive economic zone. Such equipment includes containment booms, skim- 
 mers, response vessels, and buoys. The regulations shall require the submission to 
 the Secretary or the Administrator of such information as the Secretary or the Ad- 
 ministrator may require for obtaining certification by the Secretary or the Adminis- 
 trator not less than once every 3 years to ensure the equipment is maintained in 
 working condition. The Secretary and the Administrator shall each take such ac- 
 tions as may be necessary to make their respective certifications under this subsec- 
 tion and to enforce this subsection, including the regulations issued by them respec- 
 tively. 
 
 (d) Upgrading of Personnel and Equipment.— 
 
 (1) By owners and operators. — Not later than 6 months after the date of the 
 submission of the report under subsection (a), the Secretary or the Administra- 
 tor of the Environmental Protection Agency, as the case may be, shall issue reg- 
 ulations which require owners and operators of vessels and facilities to take 
 (within 6 months after the date of the issuance of such regulations) such action 
 as may be necessary to ensure that sufficient personnel and equipment are 
 available, on a regional and collective basis, for responding to discharges of oil 
 and substantial threats of discharges of oil described in the first sentence of 
 subsection (a) in an effective and timely manner. 
 
 (2) By the united states. — If owners and operators of vessels and facilities 
 have not taken all actions required by the Secretary or the Administrator, as 
 the case may be, under paragraph (1) within 6 months after the date of the issu- 
 ance of regulations by the Secretary or the Administrator under paragraph (1), 
 the Secretary or the Administrator shall take such actions as may be necessary 
 to ensure that sufficient personnel and equipment for responding to discharges 
 of oil and substantial threats of discharges of oil described in the first sentence 
 of subsection (a) in an effective and timely manner are available on a regional 
 and collective basis. 
 
 (e) Funding.— All expenses incurred by the Secretary, and all expenses incurred 
 by the Administrator of the Environmental Protection Agency, in carrying out this 
 section shall be paid for out of the Fund. 
 
 SEC. 204. COMPUTER LISTING OF EMERGENCY RESPONSE RESOURCES AND AVAILABILITY OF 
 AGENCY DATA. 
 
 (a) Establishment of Computer Listing.— Not later than 1 year after the date of 
 the enactment of this section, the National Response Center shall (in consultation 
 with State officials responsible for removal of oil from navigable waters and adjoin- 
 ing shorelines and the waters of the exclusive economic zone) establish, maintain, 
 and annually revise a comprehensive nationwide computer listing of emergency re- 
 
18 
 
 sponse resources which are available to and appropriate for use in responding to 
 discharges and substantial threats of discharges of oil. 
 
 (b) Contents of Computer Listing.— The computer listing established under this 
 section shall include — 
 
 (1) a continually updated description of all Federal, State, local, and private 
 emergency response resources which are available for use, including — 
 
 (A) the locations and capabilities of the resources; 
 
 (B) specification of the suitability of each resource for use in rivers, har- 
 bors, open ocean, and calm waters; and 
 
 (C) specification of the suitability of each resource for use in fresh water 
 and in salt water; 
 
 (2) a nationwide listing of persons having emergency response resources avail- 
 able for sale or lease, including — 
 
 (A) each such person's address, telephone number, and hours of business; 
 and 
 
 (B) a description of the types and capabilities of their resources; 
 
 (3) a listing of the names, telephone numbers, and areas of expertise of per- 
 sons residing in the vicinity of areas covered by the National Contingency Plan 
 who are experts in — 
 
 (A) responding to discharges or the substantial threats of discharges of 
 oil; or 
 
 (B) the effects of such discharges or threats. 
 
 (c) Information Access. — The National Response Center shall provide continuous 
 access to information contained in the listing established under this section to — 
 
 (1) each regional response team; 
 
 (2) each regional response center; 
 
 (3) each on-scene coordinator; and 
 
 (4) all State and local government officials responsible for directing State or 
 local governmental response to discharges and substantial threats of discharges 
 of oil. 
 
 (d) Ready Accessibility. — The head of each Federal agency having a representa- 
 tive on the National Response Team shall ensure that, during all periods of activa- 
 tion of the National Contingency Plan, all persons described in subsection (c) with 
 respect to the activation have ready accessibility to all relevant data in the posses- 
 sion of such agency (other than classified data) regarding the geographic, oceano- 
 graphic, hydrologic, natural resource, and meteorological characteristics of the navi- 
 gable waters or adjoining shorelines and the waters of the exclusive economic zone 
 for which the National Contingency Plan is activated. 
 
 (e) International Inventory. — The President shall take such actions as may be 
 necessary to encourage appropriate international organizations to establish an inter- 
 national inventory of emergency response resources. 
 
 (f) Definitions. — For purposes of this section — 
 
 (1) Emergency response resource.— The term "emergency response re- 
 source" means all equipment, supplies (including chemical and biological 
 agents), and personnel having special knowledge or expertise, that are particu- 
 larly useful for responding to a discharge or substantial threat of a discharge of 
 oil. 
 
 (2) National response center, national response team, regional response 
 
 CENTER, REGIONAL RESPONSE TEAM, AND ON-SCENE COORDINATOR. — The terms 
 
 "National Response Center", "National Response Team", "Regional Response 
 Center", "Regional Response Team", and "On-Scene Coordinator" have the 
 meaning such terms have in the National Contingency Plan. 
 
 SEC. 205. VESSEL TRAFFIC SYSTEMS. 
 
 (a) Needs Survey. — The Secretary shall make a survey of areas of navigable 
 waters to determine the needs for new, expanded, or improved vessel traffic sys- 
 tems. 
 
 (b) Priority List. — 
 
 (1) Establishment. — Based on the results of the needs survey conducted 
 under subsection (a), the Secretary shall establish, in order of priority, those 
 areas of navigable waters which are in need of new, expanded, or improved 
 vessel traffic systems. 
 
 (2) Factors to consider. — In determining the order of priority for the list 
 under paragraph (1), the Secretary shall consider such factors as the Secretary 
 determines appropriate, including the nature, volume, and frequency of vessel 
 traffic in the area and the risks of collisions, spills, and damages associated 
 
19 
 
 with such traffic which could be reduced or eliminated by installation, expan- 
 sion, or improvement of a vessel traffic system. 
 
 (c) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall submit to Congress a report containing the priority list established 
 under this subsection and such other information as the Secretary considers appro- 
 priate. 
 
 (d) Acquisition, Installation, and Operation. — The Secretary may acquire, in- 
 stall, and operate such equipment and vessel traffic systems as are necessary for 
 making the improvements and expansions contained on the priority list established 
 under this subsection. 
 
 (e) Mandatory Participation. — The Secretary shall make participation in vessel 
 traffic systems operated by the Secretary mandatory for such vessels as the Secre- 
 tary determines appropriate. 
 
 (f) Vessel Fees. — 
 
 (1) Establishment. — The Secretary shall establish and collect from users of 
 vessel traffic systems operated by the Secretary such fees as the Secretary de- 
 termines are necessary to pay the cost of acquisition, installation, and operation 
 of vessel traffic systems by the Secretary. Such fees shall be established in ac- 
 cordance with section 9701 of title 31, United States Code. 
 
 (2) Use of fees. — Fees collected by the Secretary under this subsection shall 
 be credited and available to the Secretary, without fiscal year limitation, to pay 
 the cost of acquisition, installation, and operation of vessel traffic systems by 
 the Secretary. 
 
 (3) Limitations on statutory construction. — Nothing in this subsection 
 shall be construed as altering or expanding the duties and liabilities of the 
 United States for the performance of functions or services for which fees are 
 collected under this subsection. The collection of such fees shall not constitute 
 an express or implied undertaking by the United States to perform any service 
 or activity in a certain manner or to provide any service at a particular time or 
 place. 
 
 (g) Direction of Vessel Movement. — 
 
 (1) Study. — The Secretary shall conduct a study of whether or not the Secre- 
 tary should be given additional authority to direct the movement of vessels 
 upon navigable waters and should exercise such authority. 
 
 (2) Report. — Not later than 1 year after the date of the enactment of this Act, 
 the Secretary shall submit to Congress a report on the results of the study con- 
 ducted under paragraph (1) together with recommendations for implementing 
 the results of such study. 
 
 SEC. 206. NAVIGATIONAL AIDS. 
 
 (a) Study. — The Secretary shall conduct a study to determine the areas in which 
 navigation risks are sufficient to require tug escorts of tankers or other navigation 
 aids to improve the safe movement of tankers. 
 
 (b) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall submit to Congress a report on the results of the study conducted 
 under subsection (a) together with recommendations for implementing the results of 
 such study. 
 
 (c) Implementation.— The Secretary shall issue such regulations and take such 
 actions as may be necessary to implement the recommendations contained in the 
 report submitted to Congress under this section. 
 
 SEC 207. PERIODIC GAUGING OF PLATING THICKNESS OF COMMERCIAL VESSELS. 
 
 Not later than 1 year after the date of the enactment of this Act, the Secretary 
 shall issue regulations — 
 
 (1) establishing minimum standards for the plating thickness of vessels trans- 
 porting oil in bulk or commercial quantities, and 
 
 (2) requiring periodic gauging of the plating thickness of all vessels over 30 
 years old which are used to transport oil in bulk or commercial quantities upon 
 the navigable waters or the waters of the exclusive economic zone. 
 
 SEC. 208. OVERFILL AND TANK LEVEL OR PRESSURE MONITORING DEVICES. 
 
 (a) Standards.— Not later than 1 year after the date of the enactment of this Act, 
 the Secretary shall establish, by regulation, minimum standards for devices for 
 warning persons of overfills and tank levels of oil in cargo tanks and devices for 
 monitoring the pressure of oil cargo tanks. 
 
 (b) Use.— Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall issue regulations establishing requirements concerning the use of — 
 
 (1) overfill devices, and 
 
 (2) tank level or pressure monitoring devices, 
 
20 
 
 which are referred to in subsection (a) and which meet the standards established by 
 the Secretary under subsection (a), on vessels transporting oil in bulk or commercial 
 quantities upon the navigable waters and the waters of the exclusive economic zone. 
 
 SEC. 209. TANKER PERSONNEL. 
 
 (a) Study. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall conduct a study for the purpose of determining appropriate crew 
 sizes for tankers and qualifications of personnel on such tankers. 
 
 (b) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall submit to Congress a report on the results of the study conducted 
 under subsection (a) together with recommendations for implementing the results of 
 such study. 
 
 SEC. 210. USE OF LINERS. 
 
 (a) Study. — The Administrator of the Environmental Protection Agency shall con- 
 duct a study to determine whether or not liners should be used as a secondary 
 means of containment at onshore facilities used for the bulk storage of oil and locat- 
 ed near navigable waters to prevent leaching of oil into the ground and to aid in 
 leak detection. 
 
 (b) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Administrator of the Environmental Protection Agency shall submit to Congress a 
 report on the results of the study conducted under subsection (a) together with rec- 
 ommendations for implementing the results of such study. 
 
 (c) Implementation. — The Administrator of the Environmental Protection Agency 
 shall issue such regulations and take such actions as may be necessary to imple- 
 ment the recommendations contained in the report submitted to Congress under 
 this section. 
 
 SEC. 211. MODIFICATIONS TO DREDGES. 
 
 (a) Study. — The Secretary of the Army shall conduct a study for the purpose of 
 determining the feasibility of modifying dredges for the purpose of making such 
 dredges usable in responding to a discharge of oil or the substantial threat of a dis- 
 charge of oil. 
 
 (b) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary of the Army shall submit to Congress a report on the results of the study 
 conducted under subsection (a) together with recommendations for implementing 
 the results of such study. 
 
 SEC. 212. TANKER FREE ZONES. 
 
 (a) Study. — The Secretary, in consultation with other appropriate Federal and 
 State officials, shall conduct a study of whether or not to designate areas of the nav- 
 igable waters and exclusive economic zone as zones where the movement of tankers 
 should be prohibited or limited. If the Secretary, as a result of such study, deter- 
 mines that such zones should be designated, the Secretary shall also study which 
 areas to designate as such zones, and what limitations to impose on tanker traffic in 
 any zones so designated, taking into consideration the following: existing navigation- 
 al risks based on geography, weather, and volume of traffic; potential for danger to 
 natural resources; and availability of alternative methods for transporting oil (such 
 as deepwater port facilities). 
 
 (b) Report. — Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall submit to Congress a report on the results of the study conducted 
 under subsection (a) together with recommendations for implementing the results of 
 such study. 
 
 SEC. 213. SUPERIORITY OF FEDERAL PILOTS' LICENSES. 
 
 (a) Study. — The Secretary shall conduct a study to determine whether or not li- 
 censes issued by the Secretary authorizing persons to serve as pilots of commercial 
 vessels operating on the navigable waters should be legally superior to licenses 
 issued by the States for such purposes. 
 
 (b) Report.— Not later than 1 year after the date of the enactment of this Act, the 
 Secretary shall submit to Congress a report on the results of the study conducted 
 under subsection (a) together with recommendations for implementing the results of 
 such study. 
 
 SEC. 214. RESEARCH AND DEVELOPMENT PROGRAM. 
 
 (a) Establishment.— The President shall establish a program for conducting oil 
 pollution research and development under this section and designate appropriate 
 Federal agencies to participate in such program. 
 
21 
 
 (b) General Purposes.— The purposes of the research and development program 
 under this section includes the following: 
 
 (1) Development of new or improved methods to contain discharges of oil from 
 vessels and facilities. Such methods must minimize health risks to persons who 
 will have responsibility for containing such discharges. 
 
 (2) Development of new or improved methods (including the use of dispersants 
 and bioremediation) for oil recovery, cleanup, and disposal which are effective 
 and protect the environment. 
 
 (3) Development of effective models to predict the effects of discharges of oil 
 and the fate of such oil, including the development of baseline data necessary 
 for determining such effects. 
 
 (4) Development of technologies and methods to protect public health and 
 safety from discharges of oil (including the population directly exposed to an oil 
 discharge and response personnel performing cleanup activities). 
 
 (5) Development of new or improved methods to ensure the health and safety 
 of response personnel performing cleanup activities. 
 
 (6) Development of adequate worker training standards for oil discharge re- 
 sponse personnel. 
 
 (7) Development of new or improved methods to restore and rehabilitate natu- 
 ral resources damaged by discharges of oil. 
 
 (8) Determination of long-term effects of discharges of oil on fish and wildlife. 
 
 (c) Specific Research and Development Projects. — 
 
 (1) Vessel design and construction criteria. — Under the program estab- 
 lished under this section, the President shall direct the Secretary to conduct re- 
 search on changes in vessel design and construction criteria (such as tank size, 
 vessel size, double hulls, and ballast sides) for the purpose of reducing the likeli- 
 hood of discharges of oil. 
 
 (2) Technology. — Under the program established under this section, the 
 President shall direct the Secretary and the Administrator of the Environmen- 
 tal Protection Agency to conduct a joint research and development program for 
 improving technology to prevent discharges of oil and minimize the size of such 
 discharges. The technologies examined under such research and development 
 program shall include technologies for measuring the ullage of a vessel, pre- 
 venting discharges from tank vents, preventing discharges during lightering 
 and bunkering operations, and containing discharges on the deck of a vessel. 
 
 (d) Annual Reports. — The President shall submit to Congress an annual report 
 on the activities carried out under this section in the preceding fiscal year and on 
 activities the President proposes to carry out under this section in the current fiscal 
 year. 
 
 (e) Funding.— For carrying out the purposes of this section, there is authorized to 
 be appropriated from the Fund $10,000,000 for fiscal year 1991, $10,000,000 for fiscal 
 year 1992, $7,500,000 for fiscal year 1993, $5,000,000 for fiscal year 1994, and 
 $5,000,000 for fiscal year 1995. 
 
 SEC. 215. CONSIDERATION OF ALCOHOL ABUSE. 
 
 (a) Issuance and Renewal of Licenses, Certificates of Registry, and Mer- 
 chant Mariner Documents. — 
 
 (1) In general.— Chapter 71 of title 46, United States Code, is amended by 
 adding at the end the following: 
 
 "§7115. Consideration of alcohol abuse in issuing and renewing licenses and certif- 
 icates of registry 
 
 "(a) Limitation on Issuance of Licenses and Certificates. — The Secretary may 
 not issue or renew a license or certificate of registry under this chapter for any indi- 
 vidual who — 
 
 "(1) the Secretary determines is a current or chronic abuser of alcohol; or 
 "(2) fails to make available to the Secretary the information referred to in 
 subsection (b). 
 
 "(b) Driving Record Information. — The Secretary shall require each individual 
 applying for issuance or renewal of a license or certificate of registry under this 
 chapter to make available to the Secretary, in accordance with section 206(b)(4) of 
 the National Driver Register Act of 1982 (23 U.S.C. 401 note), all information con- 
 tained in the National Driver Register regarding the motor vehicle driving record of 
 such individual. 
 
 "(c) Investigations. — Upon receiving reliable information that an individual ap- 
 plying for issuance or renewal of a license or certificate of registry under this chap- 
 ter has been found guilty of an alcohol-related infraction resulting in suspension or 
 revocation of a motor vehicle operator license issued to the individual, the Secretary 
 
22 
 
 may conduct such investigations as are necessary to determine if the individual is a 
 
 current or chronic abuser of alcohol.". 
 
 (2) Clerical amendments. — The item relating to chapter 71 contained in the 
 table of sections for title 46, United States Code, and the chapter analysis for 
 chapter 71 of such title are each amended by adding at the end the following: 
 
 "7115. Consideration of alcohol abuse in issuing and renewing licenses and certificates of registry.". 
 
 (b) Certificates of Registry. — Section 7107 of title 46, United States Code, is 
 amended by striking the first sentence and inserting the following: "The Secretary 
 shall determine the term of validity of a certificate of registry. Such a certificate 
 may be renewed under regulations issued by the Secretary.". 
 
 (c) Merchant Mariner's Documents.— Section 7302 of title 46, United States 
 Code, is amended by adding at the end the following: 
 
 "(c) Limitation on Issuance of Documents. — The Secretary may not issue or 
 renew a merchant mariner's document under this chapter for any individual who — 
 "(X) the Secretary determines is a current or chronic abuser of alcohol; or 
 "(2) fails to make available to the Secretary the information referred to in 
 subsection (d). 
 
 "(d) Driving Record Information. — The Secretary may require each individual 
 applying for issuance or renewal of a merchant mariner's document under this 
 chapter to make available to the Secretary, in accordance with section 206(b)(4) of 
 the National Driver Register Act of 1982 (23 U.S.C. 401 note), all information con- 
 tained in the National Driver Register regarding the motor vehicle driving record of 
 such individual. 
 
 "(e) Investigations. — Upon receiving reliable information that an individual ap- 
 plying for issuance or renewal of a merchant mariner's document under this chap- 
 ter has been found guilty of an alcohol-related infraction resulting in suspension or 
 revocation of a motor vehicle operator license issued to the individual, the Secretary 
 may conduct such investigations as are necessary to determine if the individual is a 
 current or chronic abuser of alcohol. 
 
 "(f) Period of Validity. — The Secretary shall determine the term of validity of a 
 merchant mariner's document. Such documents may be renewed under regulations 
 issued by the Secretary.". 
 
 (d) Suspension and Revocation of Licenses, Certificates, and Documents. — 
 Section 7703 of title 46, United States Code, is amended — 
 
 (1) by inserting "(a)" before the first sentence; and 
 
 (2) by adding at the end the following: 
 "(b) Suspensions for Alcohol Abuse. — 
 
 "(1) In general. — The Secretary may suspend or revoke a license, certificate 
 of registry, or merchant mariner's document issued by the Secretary to an indi- 
 vidual if— 
 
 "(A) the Secretary determines the individual is a current or chronic 
 abuser of alcohol; or 
 
 "(B) the individual fails to make available to the Secretary the informa- 
 tion referred to in paragraph (3). 
 Any determination of the Secretary to suspend or revoke the license, certificate 
 of registry, or merchant mariner's document of an individual under this para- 
 graph shall be based on the severity of abuse of alcohol by the individual and 
 the length of time necessary to control that abuse. 
 
 "(2) Investigations. — The Secretary may conduct such investigations as are 
 necessary to determine if an individual who holds a license, certificate of regis- 
 try, or merchant mariner's document issued by the Secretary is a current or 
 chronic abuser of alcohol if the Secretary receives reliable information — 
 "(A) regarding any alcohol-related misconduct of the individual; or 
 "(B) pursuant to paragraph (3) that the individual has been found guilty 
 of an alcohol-related infraction resulting in suspension or revocation of a 
 motor vehicle operator license issued to the individual. 
 "(3) Driving record information. — The Secretary may request an individual 
 who holds a license, certificate of registry, or merchant mariner's document 
 issued by the Secretary to make available to the Secretary, in accordance with 
 section 206(b)(4) of the National Driver Register Act of 1982 (23 U.S.C. 401 note), 
 all information contained in the National Driver Register regarding the motor 
 vehicle driving record of such individual. 
 
 "(4) Limitation on suspension terminations. — The Secretary may not termi- 
 nate a suspension of a license, certificate of registry, or merchant mariner's doc- 
 ument of an individual under paragraph (1)(A) until the individual provides suf- 
 ficient proof that the individual is no longer a current or chronic abuser of alco- 
 hol.". 
 
23 
 
 (e) Relief of Master. — Section 8101 of title 46, United States Code, is amended by 
 adding at the end the following new subsection: 
 
 "(i) Relief of Master. — If the chief mate or equivalent and the next senior crew- 
 member on board a vessel determine that reasonable cause exists to believe that the 
 master or individual in command is intoxicated as a result of the use of dangerous 
 drugs (as defined in section 7704) or alcohol and is therefore incapable of command- 
 ing the vessel, the chief mate shall temporarily relieve the master and temporarily 
 assume command of the vessel and shall immediately enter the details in the vessel 
 log and report such details to the Secretary by the most expeditious means avail- 
 able. The chief mate shall also report the circumstances in writing to the Secretary 
 within 12 hours after the vessel arrives at its destination.". 
 
 (f) Regulations. — The Secretary is authorized to issue such regulations as may be 
 necessary to implement the amendments made by this section. 
 
 SEC. 216. ACCESS TO NATIONAL DRIVER REGISTER. 
 
 (a) In General.— Section 206(b) of the National Driver Register Act of 1982 (23 
 U.S.C. 401 note) is amended — 
 
 (1) by redesignating paragraph (4) and the first paragraph (5) as paragraphs 
 (6) and (7), respectively; 
 
 (2) by redesignating the second paragraph (5), relating to locomotive opera- 
 tors, as paragraph (4) and moving such paragraph after paragraph (3); 
 
 (3) by inserting after the paragraph which is redesignated and moved under 
 paragraph (2) of this subsection the following new paragraph: 
 
 "(5) Seaman certificates. — Any individual who has applied for or received a 
 license or certificate of registry in accordance with section 7101 of title 46, 
 United States Code, or a merchant mariner's document in accordance with sec- 
 tion 7302 of title 46, United States Code, or has applied for a renewal of such 
 license, certificate of registry, or document, may request the chief driver licens- 
 ing official of a State to transmit information regarding the individual under 
 subsection (a) to the Secretary. The Secretary may receive such information and 
 shall, prior to using such information in any adverse action regarding the indi- 
 vidual's license, certificate of registry, or document, make such information 
 available to the individual for review and written comment. The Secretary may 
 not otherwise divulge or use such information, except in accordance with sec- 
 tion 7115, 7302, or 7703 of title 46, United States Code. There shall be no access 
 to information in the Register under this paragraph if such information was en- 
 tered in the Register more than 5 years before the date of such request, unless 
 such information relates to revocations or suspensions which are still in effect 
 on the date of the request. Information submitted to the Register by States 
 under the Act of July 14, 1960 (74 Stat. 526), or under this Act shall be subject 
 to access for the purpose of this paragraph during the transition to the Register 
 established under section 203(a) of this Act.". 
 
 (b) Conforming Amendment.— Section 208 of such Act is amended by striking 
 "an individual described" and all that follows through "title, who" and inserting 
 "an individual described in section 206(b)(6) of this title, who". 
 
 TITLE HI— MPLEMENTATION OF INTERNATIONAL 
 CONVENTIONS 
 
 SEC. 301. DEFINITIONS. 
 
 For the purposes of this title — 
 
 (1) Ship, owner, oil, pollution damage, and incident. — The terms "ship", 
 "owner", "oil", "pollution damage", and "incident" shall have the meanings 
 provided in Article I of the Civil Liability Convention. 
 
 (2) Civil liability convention.— The term "Civil Liability Convention" 
 means the International Convention on Civil Liability for Oil Pollution Damage, 
 1984. 
 
 (3) Financial responsibility.— The term "financial responsibility" has the 
 same meaning as "financial security" under the Civil Liability Convention. 
 
 (4) Fund convention. — The term "Fund Convention" means the Internation- 
 al Convention on the Establishment of an International Fund for Compensation 
 for Oil Pollution Damage, 1984. 
 
 (5) International fund. — The term "International Fund" means the Interna- 
 tional Oil Pollution Compensation Fund established under Article 2 of the Fund 
 Convention. 
 
24 
 
 SEC. 302. APPLICABILITY OF CONVENTIONS. 
 
 During any period in which the Civil Liability Convention and the Fund Conven- 
 tion are in force with respect to the United States, liability relating to pollution 
 damage arising from an incident involving a ship shall be determined in accordance 
 with the Civil Liability Convention and the Fund Convention. Nothing in this title 
 shall constitute a ratification of either the Civil Liability Convention or the Fund 
 Convention. 
 
 SEC. 303. RECOGNITION OF INTERNATIONAL FUND. 
 
 The International Fund is recognized under the laws of the United States as a 
 legal person and shall have the capacity to acquire and dispose of real and personal 
 property and to institute and be party to legal proceedings. The Director of the 
 International Fund is recognized as the legal representative of the International 
 Fund. The Director shall be deemed to have appointed irrevocably the Secretary of 
 State as the International Fund's agent for the service of process in any legal pro- 
 ceedings within the United States involving the International Fund. The Interna- 
 tional Fund and its assets shall be exempt from all direct taxation and payment of 
 any customs duties in the United States. 
 
 SEC. 304. ACTION IN UNITED STATES COURTS. 
 
 (a) Service of Process on Fund. — In any action brought in a court in the United 
 States against the owner of a ship or its guarantor under the Civil Liability Conven- 
 tion, the plaintiff or defendant, as the case may be, shall serve a copy of the com- 
 plaint and any subsequent pleading therein upon the International Fund at the 
 same time the complaint or other pleading is served upon the opposing parties. 
 
 (b) Intervention. — The International Fund may intervene as a party as a matter 
 of right in any action brought in a court in the United States against the owner of a 
 ship or its guarantor under the Civil Liability Convention. 
 
 SEC. 305. CONTRIBUTION TO INTERNATIONAL FUND. 
 
 (a) Payments To Be Made From Oil Spill Liability Trust Fund. — The amount 
 of any contribution to the International Fund which is required to be made under 
 Article 10 of the Fund Convention by any person with respect to oil received in any 
 port, terminal installation, or other installation located in the United States shall 
 be paid to the International Fund from the Oil Spill Liability Trust Fund. 
 
 (b) Information. — The Secretary may, by regulation, require persons who are re- 
 quired to make contributions with respect to oil received in any port, terminal, or 
 other installation in the United States under Article 10 of the Fund Convention to 
 provide all information relating to the oil as may be necessary to carry out subsec- 
 tion (a) of this section, Articles 10, 12, 13, 14, and 15 of the Fund Convention, and 
 Article 29 of the Protocol of 1984 to Amend the International Convention on the 
 Establishment of an International Fund for Compensation for Oil Pollution Damage, 
 1971. 
 
 SEC. 306. RECOGNITION OF FOREIGN JUDGMENTS. 
 
 Any final judgment of a court of any country which is a party to the Civil Liabil- 
 ity Convention or to the Fund Convention in an action for compensation under 
 either convention shall be recognized by any court of the United States having juris- 
 diction under this Act, when the judgment has become enforceable in such country 
 and is no longer subject to ordinary form of review, except where — 
 
 (1) the judgment was obtained by fraud, or 
 
 (2) the defendant was not given reasonable notice and a fair opportunity to 
 present its case. 
 
 SEC. 307. FINANCIAL RESPONSIBILITY. 
 
 (a) United States Documented Ships. — The owner of each ship which is docu- 
 mented under the laws of the United States which is subject to the Civil Liability 
 Convention shall establish and maintain, in accordance with regulations issued by 
 the Secretary, evidence of financial responsibility as required in Article VII of the 
 Civil Liability Convention. 
 
 (b) Other Ships. — The owner of each ship (other than a ship to which subsection 
 (a) applies or a ship which is a public vessel) which is subject to the Civil Liability 
 Convention and which enters or leaves a port or terminal in the United States or 
 uses an Outer Continental Shelf facility or an offshore facility that is or was li- 
 censed under the Deepwater Port Act of 1974 shall establish and maintain, in ac- 
 cordance with regulations issued by the Secretary, evidence of financial responsibil- 
 ity as required in Article VII of the Civil Liability Convention. Any ship which has 
 on board a valid certificate issued in accordance with Article VII of the Civil Liabil- 
 
25 
 
 ity Convention shall be considered as having met the requirements of this subsec- 
 tion. Any ship carrying only oil as cargo, fuel, or residue, which has on board a 
 valid certificate issued in accordance with Article VII of the Civil Liability Conven- 
 tion shall be considered as having met the requirements of section 107 of this Act. 
 
 (c) Authority of Secretary To Issue. — The Secretary is authorized to issue any 
 certificate of financial responsibility which the United States may issue under the 
 Civil Liability Convention. 
 
 (d) Withholding Clearance. — The Secretary of the Treasury shall withhold or 
 revoke the clearance required by section 4197 of the Revised Statutes of the United 
 States (46 U.S.C. App. 91) of any ship which does not have a certificate demonstrat- 
 ing compliance with this section. 
 
 (e) Denying Entry and Detaining Vessels. — The Secretary may (1) deny entry 
 to any facility or to any port or place in the United States, or (2) detain at the facili- 
 ty or port or place in the United States, any ship subject to this section which, upon 
 request, does not produce the certificate demonstrating compliance with this section 
 or regulations issued under this section. 
 
 (f) Civil Penalty. — Any person who, after notice and an opportunity for a hear- 
 ing, is found to have violated this section, any regulation issued under this section, 
 section 305(b), or section 308, or any denial or detention order issued under subsec- 
 tion (e) of this section shall be liable to the United States for a civil penalty not to 
 exceed $25,000 per day of violation. The amount of the civil penalty shall be as- 
 sessed by the Secretary in accordance with the procedures set forth in section 107 of 
 this Act. 
 
 (g) Waiver of Sovereign Immunity. — The United States waives all defenses 
 based on its status as a sovereign state with respect to any controversy arising 
 under the Civil Liability Convention or the Fund Convention relating to any ship 
 owned by the United States and used for commercial purposes. 
 
 SEC. 308. REGULATIONS. 
 
 The Secretary shall issue such regulations as may be necessary to carry out this 
 title and all obligations of the United States under the Civil Liability Convention 
 and the Fund Convention. 
 
 TITLE IV— MISCELLANEOUS PROVISIONS 
 
 SEC. 401. TRANS-ALASKA PIPELINE FUND. 
 
 (a) Amendments to Section 204(b).— Section 204(b) of the Trans-Alaska Pipeline 
 Authorization Act (43 U.S.C. 1653(b)) is amended— 
 
 (1) in the first sentence by inserting after "any area" the following: "in the 
 State of Alaska"; 
 
 (2) in the first sentence by inserting after "any activities" the following: "re- 
 lated to the trans-Alaska oil pipeline"; and 
 
 (3) by adding at the end the following new sentence: "This subsection shall 
 not apply to removal costs covered by the Oil Pollution Prevention, Response, 
 Liability, and Compensation Act of 1989.". 
 
 (b) Repeal of Section 204(c).— Section 204(c) of the Trans-Alaska Pipeline Author- 
 ization Act is repealed. The repeal made by the preceding sentence shall not affect 
 the applicability of such section to claims arising before the date of the enactment 
 of this Act. The repeal of paragraphs (4), (6), and (8) of such section shall only 
 become effective upon the payment by the Board of Trustees of the Trans-Alaska 
 Pipeline Liability Fund of all claims certified under subsection (c) of this section. 
 
 (c) Certification of Outstanding Claims. — Not later than 210 days after the 
 date of the enactment of this Act, the Board of Trustees of the Trans-Alaska Pipe- 
 line Liability Fund shall certify to the Secretary the total amount of claims out- 
 standing against such Fund as of the date of the enactment of this Act. 
 
 SEC 402. INTERVENTION ON THE HIGH SEAS ACT. 
 
 Section 17 of the Intervention on the High Seas Act (33 U.S.C. 1486) is amended to 
 read as follows: 
 
 "SEC. 17. AVAILABILITY OF OIL SPILL LIABILITY TRUST FUND. 
 
 "The Oil Spill Liability Trust Fund shall be available to the Secretary for actions 
 taken under sections 5 and 7 of this Act.". 
 
 SEC. 403. FEDERAL WATER POLLUTION CONTROL ACT. 
 
 (a) National Contingency Plan.— Section 311(c)(2) of the Federal Water Pollu- 
 tion Control Act (33 U.S.C. 1321(c)(2)) is amended— 
 
26 
 
 (1) in subparagraph (C) by striking "establishment or designation of a strike 
 force consisting" and inserting "designation, establishment, and maintenance of 
 a strike force consisting of at least 4 teams"; 
 
 (2) in subparagraph (D) by inserting "safeguard against as well as" after "sur- 
 veillance and notice designed to"; 
 
 (3) in subparagraph (F) by inserting "as well as research and development 
 into methods and techniques to improve existing technology" after "removing 
 oil and hazardous substances"; and 
 
 (4) in subparagraph (H) by striking "reimbursed from the fund established 
 under subsection (k) of this section for the reasonable costs incurred in such re- 
 moval" and inserting "reimbursed, in the case of any discharges of oil from a 
 vessel or facility, for the reasonable costs incurred for such removal, from the 
 Oil Spill Liability Trust Fund". 
 
 (b) Cleanup Expenses. — Section 311(d) of such Act is amended by striking the last 
 sentence. 
 
 (c) Abatement Actions. — Section 311(e) of such Act is amended to read as follows: 
 "(e) Abatement Actions. — 
 
 "(1) President's authority. — In addition to any action taken by a State or 
 local government, when the President determines that there may be an immi- 
 nent and substantial threat to the public health or welfare of the United States, 
 including fish, shellfish, and wildlife and public and private property, shore- 
 lines, and beaches under the jurisdiction or control of the United States, be- 
 cause of an actual or threatened discharge of oil or a hazardous substance from 
 a vessel or facility in violation of subsection (b) of this section, the President 
 may— 
 
 "(A) require the Attorney General to secure such relief as may be neces- 
 sary to abate such threat; or 
 
 "(B) after notice to the affected State, take such other action under this 
 section, including issuing such administrative orders, as may be necessary 
 to protect the public health and welfare. 
 "(2) Enforcement of orders.— If any person fails without sufficient cause to 
 comply with an order under paragraph (1)(B), the President may request the At- 
 torney General to bring an action in the appropriate district court of the United 
 States to enforce such an order, to assess civil penalties of not more than 
 $25,000 a day for each violation, and to assess 3 times the removal costs or dam- 
 ages incurred by the Oil Spill Liability Trust Fund as a result of the failure to 
 comply. 
 
 "(3) District court jurisdiction. — The district courts of the United States 
 shall have jurisdiction to grant such relief under this subsection as the public 
 interest and the equities of the case may require.". 
 
 (d) Limitation on Applicability To Prevent Overlapping Coverage. — Subsec- 
 tions (f), (g), (h), and (i) of section 311 of such Act shall not apply with respect to any 
 incident with respect to which section 102 of this Act applies. 
 
 (e) Recovery From 3rd Parties.— Section 311(i) of such Act is amended by strik- 
 ing "(1)" and striking paragraphs (2) and (3). 
 
 CD Oil Spill Revolving Fund — 
 
 (1) Conforming amendment.— Section 311(k) of such Act is repealed. 
 
 (2) Treatment of remaining funds. — Any amounts remaining in the revolv- 
 ing fund established under section 311(k) of the Federal Water Pollution Con- 
 trol Act shall be deposited in the general fund of the Treasury. 
 
 (3) Treatment of liabilities.— The Fund shall assume all liability incurred 
 by the revolving fund established under section 311(k) of the Federal Water Pol- 
 lution Control Act. 
 
 (g) Funding of Delegated Authority.— Section 311(1) of the Federal Water Pollu- 
 tion Control Act is amended by striking the second sentence. 
 
 (h) Evidence of Financial Responsibility.— Section 311(p) of such Act is re- 
 pealed. 
 
 (i) Availability of Fund. — Section 311 of such Act is amended by adding at the 
 end thereof the following new subsection: 
 
 "(s) Availability of Oil Spill Liability Trust Fund.— The Oil Spill Liability 
 Trust Fund shall be available to carry out subsections (c), (d), (i), and (1). Any 
 amounts received by the United States under this section shall be deposited in the 
 Oil Spill Liability Trust Fund.". 
 
 (j) Notice to State; Increased Penalty for Failure To Report. — Section 
 311(b)(5) of such Act is amended — 
 
 (1) by inserting after the first sentence the following: "The Federal agency 
 shall immediately notify the appropriate State agency of any State which is, or 
 
27 
 
 may reasonably be expected to be, affected by the discharge of oil or a hazard- 
 ous substance."; and 
 
 (2) by striking "fined not more than $10,000, or imprisoned for not more than 
 one year, or both" and inserting "fined in accordance with the applicable provi- 
 sions of title 18 of the United States Code, or imprisoned for not more than 3 
 years (or not more than 5 years in the case of a second or subsequent convic- 
 tion), or both", 
 (k) Increased Penalty for Discharges. — Section 311(b)(6)(A) of such Act is 
 
 amended by striking "$5,000 for each offense" each place it appears and inserting 
 
 "$25,000 for each day of such offense". 
 
 SEC. 404. DEEPWATER PORT ACT. 
 
 (a) Section 4(c)— Section 4(c)(1) of the Deepwater Port Act of 1974 (33 U.S.C. 
 1503(c)(1)) is amended by striking "section 18(1) of this Act;" and inserting "section 
 107 of the Oil Pollution Prevention, Response, Liability, and Compensation Act of 
 1989;". 
 
 (b) Section 18 — 
 
 (1) Repeals.— Subsections (b), (d), (e), (f), (g), (h), (i), (j), (1), (n), and paragraphs 
 (1) and (2) of subsection (m) of section 18 of such Act (33 U.S.C. 1517) are re- 
 pealed. 
 
 (2) Subsection (c)(3). — Subsection (c)(3) of such section is amended by striking 
 "Deepwater Port Liability Fund established pursuant to subsection (f) of this 
 section", and inserting "Oil Spill Liability Trust Fund". 
 
 (3) Redesignations. — Subsections (c), (k), and (m) of such section (and any ref- 
 erences thereto) are redesignated as subsections (b), (c), and (d) respectively, and 
 paragraphs (3) and (4) of subsection (m) of such section (and any references 
 thereto) are redesignated as paragraphs (1) and (2), respectively. 
 
 (c) Section 19.— Section 19(a)(1) of such Act (33 U.S.C. 1518(a)(1)) is amended by 
 striking the period at the end of the second sentence and inserting "; except that 
 discharges from a deepwater port or from a vessel within a deepwater port safety 
 zone which are subject to the civil penalty provisions of section 18(a)(2) of this Act 
 shall not be subject to the penalty provisions of any other Federal law.". 
 
 (d) Deepwater Port Liability Fund. — Any amounts remaining in the Deepwater 
 Port Liability Fund established under section 18(f) of the Deepwater Port Act of 
 1974 shall be deposited into the Fund. The Fund shall assume all liability incurred 
 by the Deepwater Port Liability Fund. 
 
 SEC 405. OUTER CONTINENTAL SHELF LANDS ACT AMENDMENTS OF 1978. 
 
 Title III of the Outer Continental Shelf Lands Act Amendments of 1978 (43 U.S.C. 
 1811-1824) and the portion of the table of contents for such Act which relates to 
 such title are each repealed. Any amounts remaining in the Offshore Oil Pollution 
 Compensation Fund established under section 302 of such title shall be deposited in 
 the Fund. The Fund shall assume all liability incurred by the Offshore Oil Pollution 
 Compensation Fund. 
 
 SEC 406. QUALIFIED AUTHORIZING LEGISLATION. 
 
 This Act shall be considered to be qualified authorizing legislation for purposes of 
 section 4611(f)(2)(B) of the Internal Revenue Code of 1986. 
 
 SEC 407. EFFECTIVE DATE. 
 
 Sections 401, 402, 403 (other than subsection (j)), 404, and 405 shall be effective on 
 the commencement date (as such term is defined in section 4611(f)(2) of the Internal 
 Revenue Code of 1986). 
 
 Introduction 
 
 H.R. 1465, as reported, provides a comprehensive legislative 
 framework to prevent the spilling of oil into the waters of the 
 United States and to improve our preparedness and ability to re- 
 spond to an oil spill should one occur. It establishes new authorities 
 and responsibilities for the prevention of oil spills in the first in- 
 stance, establishes a comprehensive response capability, and assess- 
 es significant liability upon the spiller of oil and the oil industry. It 
 also provides for compensation to individuals and entities which 
 suffer economic damage due to a spill. 
 
28 
 
 The Congress has had the issue of oil spill liability compensation 
 legislation pending before it for more than a decade. The House 
 and Senate each have passed oil spill legislation as recently as 
 1986, but have been unable to resolve the differences in the legisla- 
 tion. 
 
 Current legislation to address oil spill cleanup is contained pri- 
 marily in section 311 of the Federal Water Pollution Control Act. 
 That law provides that a person who discharges into or upon the 
 navigable waters of the United States, adjoining shorelines, or the 
 waters of the contiguous zone is strictly liable, that is liable with- 
 out reference to fault, to the United States for the removal costs 
 incurred, including restoration or replacement of natural resources 
 damaged or destroyed as a result of the spill. 
 
 Section 311 does not impose liability for economic losses and the 
 cleanup fund is authorized at only $35 million and it is funded pri- 
 marily through appropriations. Recent events indicate that a much 
 larger fund is necessary and that is should be funded by the oil in- 
 dustry and not by general revenues. Such a larger, tax-supported 
 fund was established by Public Law 99-509. Before such a tax can 
 be collected and spent, however, comprehensive legislation such as 
 H.R. 1465 must be enacted. 
 
 Other Federal laws which affect the liability for oil spills are the 
 Trans-Alaska Pipeline Authorization Act, the Deepwater Port Act 
 of 1974, and the Outer Continental Shelf Lands Act. These laws 
 also establish liabilities for cleanup and, in addition, allow for the 
 recovery of certain economic losses. The coverage of these Acts is, 
 however, limited and there have not been spills of sufficient magni- 
 tude to cause expenditures to be made from their funds. 
 
 In addition to the Federal laws, nearly half the states have also 
 enacted some form of oil spill liability and compensation legisla- 
 tion. These laws differ widely in their liability standards, limits of 
 liability, and whether they include funds. For those states which 
 include funds, they are financed by a variety of sources, primarily 
 license fees, excise taxes, or both. 
 
 Each year over ten thousand oil spills are reported, which either 
 pollute or threaten to pollute United States waters. Although the 
 majority of these spills are minor and are routinely removed, or re- 
 quire no removal, questions remained whether the current system 
 of Federal and state laws could provide an adequate response to a 
 major spill. 
 
 Unfortunately, shortly after midnight on March 24, 1989, the 
 987-foot tank vessel Exxon Valdez struck Bligh Reef in Prince Wil- 
 liam Sound, Alaska, and spilled nearly 11 million gallons of oil into 
 one of the most pristine and magnificent natural areas of our coun- 
 try. It quickly became apparent that the current levels of oil spill 
 prevention, preparedness, and response were not adequate for such 
 a major spill. 
 
 The lack of necessary preparedness for a major spill as demon- 
 strated in Prince William Sound necessitates that improvements be 
 made in the way the nation plans for and reacts to oil spills. 
 
 The first line of defense in any oil spill response program must 
 be prevention of a spill in the first instance. For that reason the 
 Committee has included several provisions designed to improve 
 vessel safety, both in the design of the vessels themselves and in 
 
29 
 
 vessel traffic. The bill requires the review of vessel designs for 
 future construction and the examination of existing vessels in the 
 interest of maintaining the integrity of the vessel. The bill also re- 
 quires the examination of establishing tanker free zones, expand- 
 ing vessel traffic systems, and encouraging methods to avoid the 
 risk of spilling oil into the water. In addition, the bill requires the 
 examination of proper crew sizes on tanker vessels and current and 
 chronic alcohol abuse as a factor which can be used in the suspen- 
 sion, revocation, or the refusal to issue a license, merchant mari- 
 ner's document, or certificate of registry. 
 
 The Committee's review of oil spill preparedness following the 
 Exxon Valdez incident clearly demonstrates a lack of preparedness 
 on the part of industry and government. The bill includes provi- 
 sions to improve contingency planning and training of oil spill re- 
 sponse personnel. The planning should incorporate realistic worst 
 case scenarios and include adequate equipment and personnel for a 
 major spill. Organizational responsibility must be clear and these 
 realistic exercises must be a regular part of the contingency plan- 
 ning to be assured that capabilities outlined on paper actually can 
 be met. 
 
 The Committee's review also revealed that there is a need for in- 
 creased research concerning oil spill prevention and response and 
 for the development of new technologies for prevention and re- 
 sponse. Oil spill cleanup technology has been a low priority of the 
 United States government in recent years. The bill therefore estab- 
 lishes a new research and development program, to be paid for out 
 of the fund, to improve the status of our knowledge on oil spill pre- 
 vention and response. 
 
 The Committee believes that H.R. 1465 is a proper and balanced 
 response to our Nation's needs both to increase preventive meas- 
 ures against oil spills and to respond to a spill should it occur. In 
 addition, adequate incentives exist to prevent spills on the part of 
 industry through the imposition of strict liability and the enormous 
 economic and ecological damages which could occur because of an 
 oil spill. Finally, the bill addresses the issue of compensation for in- 
 dividuals injured by an oil spill by providing for an assured source 
 of recovery and clearly delineated causes of action for economic 
 damages. 
 
 Miscellaneous 
 
 The Committee notes that the issue has been raised whether the 
 costs of cleanup and environmental restoration should be deducti- 
 ble as a business expense thereby reducing an oil spiller's tax li- 
 ability. The Committee recognizes that matters pertaining to the 
 Internal Revenue Code are the jurisdiction of the Committee on 
 Ways and Means and therefore has not attempted to resolve this 
 issue. The Committee requests the Committee on Ways and Means 
 to review current tax policy of whether oil spill related costs sould 
 continue to be deductible and thereby reduce an oil spiller's tax li- 
 ability. 
 
 The Committee is concerned about a potential problem involving 
 illegal placement of hazardous wastes and other substances into oil 
 pipelines. Accordingly, the Committee directs the Secretary of 
 
30 
 
 Transportation to determine the extent to which hazardous wastes 
 or other substances have been introduced into the pipeline subject 
 to the jurisdiction of the Hazardous Liquid Pipeline Safety Act. 
 Specifically, the Secretary is to determine the extent to which 
 those substances present a threat of damage or injury to individ- 
 uals, to pipeline facilities, or to facilities where crude oil is refined; 
 or are otherwise incompatible with normal petroleum refining op- 
 erations. 
 
 In this determination, the Secretary should consider the types 
 and amounts of such substances which have been introduced, the 
 types of damage they may have caused or could cause to individ- 
 uals, pipelines and refining facilities, and the conditions under 
 which such substances have been introduced into pipelines. Among 
 the substances to be considered are solvents, salts, metals, and 
 chlorinated or oxygenated hydrocarbons. The Secretary should con- 
 sult the Administrator of the Environmental Protection Agency 
 and the Secretary of Energy to determine the extent such introduc- 
 tion is currently regulated under federal and state statutes. The 
 Committee would expect the Secretary to report back to Congress 
 no later than twelve months after date of enactment of the bill. 
 
 The Committee also directs the Secretary to identify the sub- 
 stances and quantities of those substances which the Secretary de- 
 termines pose an unreasonable threat of damage or injury to indi- 
 viduals, pipeline facilities, or facilities where crude oil is refined, or 
 which are incompatible with normal petroleum refining operations. 
 This determination would not cover substances to the extent that 
 they naturally occur in crude oil or to substances which do not 
 pose an unreasonable threat of damage to pipeline or refining fa- 
 cilities and that are introduced for the purpose of facilitating the 
 transmission of crude oil or are otherwise introduced in the normal 
 practice of crude oil production or related field operations. The 
 Committee expects the Secretary to report back to Congress no 
 later than twelve months after the date of enactment of the bill. 
 
 Section-by-Section Analysis 
 Section 1 — Short title and table of contents 
 
 This section provides that the act made be cited as the Oil Pollu- 
 tion Prevention, Response, Liability and Compensation Act of 1989. 
 It also includes the table of contents for the bill. 
 
 TITLE I — OIL POLLUTION LIABILITY AND COMPENSATION 
 
 Section 101 — Definitions 
 
 This section contains the definitions of several words or phrases 
 which appear throughout the Act. 
 
 Section 102 — Liability 
 
 This section provides that a responsible party for a vessel or a 
 facility from which oil is discharged, or which poses a substantial 
 threat of a discharge of oil, into or upon the navigable waters or 
 adjoining shoreline or the waters of the exclusive economic zone is 
 jointly, severally, and strictly liable for the removal costs which 
 arise out of or directly result from such incident and for the speci- 
 
31 
 
 fied damages which are proximately caused by the incident. The 
 Committee has included the traditional tort concept of proximate 
 cause with regard to the determination of those damages for which 
 recovery may be had. 
 
 Removal costs are those for removal actions taken by the United 
 States, a State, or an Indian Tribe which are not inconsistent with 
 the National Contingency Plan, and other actions taken by any 
 other person which are consistent with the National Contingency 
 Plan. The types of damages for which a responsible party is liable 
 include natural resources damages, damages to real or personal 
 property, loss of subsistence use, loss of revenues, and loss of profits 
 and earning capacity. 
 
 Natural resources damages are for injury to, destruction of, or 
 loss of natural resources, including the reasonable costs of assess- 
 ing such injury, destruction, or loss. These damages are recoverable 
 by the appropriate trustee as provided in subsection (e). 
 
 Damages for injury to, or economic losses resulting from destruc- 
 tion of, real or personal property are recoverable by a claimant 
 who owns or leases the property. 
 
 Damages for loss of subsistence use of natural resources are re- 
 coverable by any claimant who so uses the natural resources which 
 have been injured, destroyed, or lost. 
 
 The government of the United States, a State, or a political sub- 
 division thereof is entitled to recover damages equal to the net loss 
 of taxes, royalties, rents, fees, or net profits shares for a period not 
 to exceed two years, due to the injury, destruction, or loss of real 
 property, personal property, or natural resources. 
 
 A person is also entitled to recover damages equal to the loss of 
 profits or impairment of earning capacity, based on prior profits or 
 earnings, due to the injury, destruction, or loss of real property, 
 personal property, or natural resources. In order to recover such 
 damages, the person must derive at least 25 percent of his or her 
 earnings from the activities which utilize the property or natural 
 resources, or, if such activities are seasonal in nature, 25 percent of 
 his or her earnings during the applicable season. 
 
 The strict liability provisions of section 102 do not apply to any 
 discharge which is authorized by a permit issued under Federal, 
 state, or local law. 
 
 In the event that a responsible party for a vessel or facility can 
 establish that a discharge and the resulting removal costs and 
 damages were caused solely by an act of omission of one or more 
 third parties (or solely by such an act or omission in combination 
 with an act of God or an act of war) the third party is to be treated 
 as the responsible party or parties for purposes of determining li- 
 ability under the Act. If the third party to whom liability is trans- 
 ferred is the owner or operator of a vessel or facility, the third 
 party is subject to the same liability limit that would apply to the 
 vessel or facility. In other cases, the third party is liable to the 
 extent that the responsible party of the vessel or facility from 
 which the discharge actually occurred would have been liable. 
 
 Subsection (b) provides that a responsible party can establish a 
 complete defense to liability if the incident resulted from an act of 
 God, an act of war, hostilities, civil war, or insurrection; or, was 
 solely caused by an act of omission of one or more persons other 
 
32 
 
 than a responsible party, an employee or agent of a responsible 
 party, or one whose act or omission occurs in connection with a 
 contractual relationship with a responsible party. This defense to 
 liability does not apply if a responsible party fails or refuses to 
 report an incident. Liability to a particular claimant can be denied 
 when an incident is caused in whole or in part by the gross negli- 
 gence or willful misconduct of the claimant, or to the extent that 
 an incident is caused by the negligence of the claimant. The Com- 
 mittee emphasizes that the defenses specifically enumerated are in- 
 tended to be the only defenses available to a responsible party and 
 no other defenses are allowed to the strict, joint, and several liabil- 
 ity which is established in the bill. 
 
 Subsection (c) establishes the liability limits for vessels and facili- 
 ties. These limits are: $500 per gross ton or $5 million, whichever is 
 greater, but not to exceed $150 million, for any tanker; $300 per 
 gross ton or $500,000, whichever is greater, for any other vessel; or 
 $75 million for any facility. 
 
 In determining liability, a tanker is defined as a vessel construct- 
 ed or adapted for the carriage of oil in bulk or in commercial quan- 
 tities as cargo, excluding a non-self-propelled vessel of less than 
 3,000 gross tons carrying oil in bulk as cargo and operating on the 
 inland waterways system. These inland barges are assessed liabil- 
 ity at the rate applicable to other vessels. These limitations do not 
 apply if the incident was proximately caused by willful misconduct 
 or gross negligence or a violation of applicable Federal safety, con- 
 struction or operating regulations. The limitations also do not 
 apply if the responsible party fails or refuses to report an incident 
 and to provide all reasonable cooperation and assistance requested 
 by a responsible official in connection with removal activities, or 
 refuses without sufficient cause to comply with an administrative 
 order issued under section 311(e) of the Federal Water Pollution 
 Control Act. 
 
 The Secretary is authorized to reduce the liability limits for fa- 
 cilities other than offshore facilities which are not deepwater ports 
 to less than $75 million, but not less than $8 million. The Secretary 
 is also directed to undertake a study of the relative operational or 
 environmental risks posed by the transportation of oil to deepwater 
 ports versus the transportation of oil by vessel to other ports. If the 
 study determines that the use of deepwater ports in connection 
 with the transportation of oil results in a lower operational or envi- 
 ronmental risk than the use of other ports, the Secretary is to initi- 
 ate a rulemaking proceeding to lower the limits of liability with re- 
 spect to vessels transferring oil to deepwater ports and with respect 
 to such ports. 
 
 Subsection (d) provides that a responsible party is liable for inter- 
 est on the amount paid in satisfaction of a claim for the period be- 
 ginning on the 30th day following the date on which the claim is 
 presented and ending on the date when the claimant is paid. The 
 making of an offer to a claimant can stop the accural of interest if 
 the offer is subsequently accepted. Interest is computed at the aver- 
 age of the highest rate for commercial and finance company paper 
 of maturities of 180 days or less as published in the Federal Re- 
 serve Bulletin. The interest which accrues on a claim is not subject 
 to the liability limitations which are contained in subsection (c)(1). 
 
33 
 
 Subsection (e) establishes the methods of determining liabilities 
 for losses of natural resources. Liability is to the United States for 
 natural resources belonging to, managed by, controlled by, or ap- 
 pertaining to the United States, to a State for such resources of the 
 State, and to an Indian Tribe for natural resources of such Indian 
 Tribe, and to the government of a foreign country for natural re- 
 sources of that country. 
 
 The President, the Governor, and the governing body of the 
 Indian Tribe are each required to designate trustees to act on their 
 behalf in determining the extent of damages to natural resources, 
 developing and implementing a plan for the restoration, rehabilita- 
 tion, or replacement or acquisition of the equivalent of the natural 
 resources which were injured and which are under their respective 
 trusteeship. Plans for the natural resources are to be developed 
 and implemented only after adequate public notice and opportunity 
 for hearing and consideration of all public comment. The Commit- 
 tee recognizes that in designating Federal trustees, the President 
 may also choose to have EPA act as an advisor to the trustees and 
 as a coordinator of long-term restoration efforts. 
 
 The measure of damages to natural resources is to be the cost of 
 restoring, rehabilitating, replacing, or acquiring the equivalent of 
 the damaged natural resources. Added to this is to be the value of 
 the lost public uses of the resources in the period beginning on the 
 date the damage occurs and ending on either the date such re- 
 sources are restored, rehabilitated, or replaced or the equivalent is 
 acquired or the date on which it is determined that such resources 
 cannot be restored, rehabilitated, or replaced or no equivalent can 
 be acquired. The subject of natural resources damages assessment 
 has recently been addressed in the cases of Ohio v. U.S. Depart- 
 ment of the Interior, et al, No. 86-1529 (D.C. Cir. July 14, 1989) and 
 Colorado v. U.S. Department of the Interior, et al, No. 87-1265 (D.C. 
 Cir. July 14, 1989). The provision in the bill regarding loss of use of 
 natural resources is not intended to affect the ruling of the Court 
 in that case or to address the issue of how loss of use is to be evalu- 
 ated. 
 
 The provision simply recognizes loss of use as a proper compo- 
 nent of damages to natural resources. Because more than one of 
 the trustees could exercise jurisdiction over a particular natural re- 
 source, the bill provides that there shall be no double recovery for 
 natural resources damages. 
 
 Determinations or assessment of damages to natural resources, 
 other than the value of the lost public use of the resource, shall 
 have the force and effect of a rebuttable presumption on behalf of 
 the trustee in any administrative or judicial proceeding to enforce 
 such an assessment. Funds recovered by a trustee for damages to 
 natural resources are to be retained by the trustee to reimburse 
 and pay costs incurred in the assessment of natural resource dam- 
 ages and developing and implementing a plan for the restoration, 
 rehabilitation, or replacement or acquisition of the equivalent of 
 the natural resources. 
 
 In the event that a responsible party causes damages to a natu- 
 ral resource which cannot be restored, rehabilitated, or replaced, or 
 for which no equivalent can be acquired, that party is to be liable 
 for a civil penalty not to exceed the greater of $1 million or one 
 
34 
 
 half of the responsible party's liability under this section. Any 
 action to recover such a civil penalty is to be brought by the Attor- 
 ney General on behalf of the trustee in a court of competent juris- 
 diction. In determining the penalty, the court is to consider the 
 nature and extent of the damages to natural resources, the value of 
 the natural resources, the degree of culpability of the person held 
 liable for the discharge, and the nature and extent of efforts taken 
 by that person to prevent or mitigate the damages, and restore the 
 natural resources. The liability for a civil penalty is in addition to 
 any other liability under the Act. 
 
 Subsection (f) allows foreign claimants to recover under the Act. 
 A foreign claimant must first seek recovery under any applicable 
 international agreement and, except for oil which originated from 
 the Trans-Alaska Pipeline, the recovery must be authorized by a 
 treaty or executive agreement between the United States and the 
 claimant's country, or it must be determined that the claimant's 
 country provides a comparable remedy for United States claimants. 
 
 Subsection (g) provides that the responsible party for a vessel or 
 facility from which oil is discharged may assert a claim for removal 
 costs or damages only if the responsible party is entitled to a de- 
 fense to liability or is entitled to a limitation of liability. Such a 
 claim may be made only to the extent that responsible party's li- 
 ability has been exhausted. 
 
 Subsection (h) specifically allows for a right of contribution 
 against any other potentially liable person. 
 
 Subsection (i) provides that no indemnification or other agree- 
 ment shall be effective to transfer any liability imposed under sec- 
 tion 102 to any other person. This does not operate to bar a cause 
 of action for subrogation. 
 
 Subsection (j) provides that the Secretary is to consult with af- 
 fected natural resources trustees on the appropriate removal action 
 to be taken in connection with any discharge of oil. Removals are 
 to be considered complete when so determined by the Secretary in 
 consultation with the Governor or Governors of the affected State 
 or States. 
 
 Section 103 — Uses of the fund 
 
 Subsection (a) provides that the Oil Spill Liability Trust Fund is 
 available to the Secretary for the payment of removal costs, includ- 
 ing the costs of monitoring removal actions; the costs incurred by 
 the trustees in carrying out their functions for assessing damages 
 to natural resources and for developing and implementing plans 
 for the restoration, rehabilitation, replacement of damaged re- 
 sources; the payment of obligations authorized by State officials; 
 the payment of removal costs and damages resulting from a dis- 
 charge of oil from foreign offshore units; the payment of personnel, 
 equipment, and training costs associated with the maintenance of 
 the strike forces authorized under section 311(c) of the Federal 
 Water Pollution Control Act; the payment of administrative and 
 personnel costs and expenses reasonably necessary for and inciden- 
 tal to the implementation and administration of the Act (which in- 
 cludes all aspects of implementing programs or studies authorized 
 in the Act unless an alternative funding source is specifically 
 
35 
 
 stated); and, the payment of contributions to international funds 
 which are the liability of the United States. 
 
 The fund is not liable for costs or damages to a claimant where 
 the incident is caused by gross negligence or willful misconduct of 
 the claimant or to the extent the costs or damages are caused by 
 the negligence of the claimant. 
 
 The maximum amount which may be paid from the fund with 
 respect to any one incident is $1 billion. The President may in- 
 crease the maximum amount with respect to the incident if the 
 President determines that such increase is necessary and in the 
 best interest of the United States. This authority to increase the 
 limit is not delegable to another Federal official. 
 
 Subsection (d) provides that the Secretary may authorize one or 
 more Federal officials to obligate money in the fund, one of which 
 shall be the Commandant of the Coast Guard. The Secretary is also 
 authorized to delegate authority to obligate money in the fund to 
 officials of a State with an adequate program operating under a co- 
 operative agreement with the Federal government. In the delega- 
 tion of authority to a State to obligate money from the fund, and in 
 the issuance of regulations permitting States to draw money from 
 the fund, the Secretary should take into account the extent of 
 State and local government participation in the preparation and 
 implementation of response plans under section 202 of the bill, and 
 the provisions of those plans. 
 
 Subsection (e) allows for the direct draw by State officials against 
 the fund of up to $250,000 for removal costs not inconsistent with 
 the National Contingency Plan. This direct draw authority is in ad- 
 dition to that which could be delegated by the Secretary to the offi- 
 cials of a State under subsection (d). In the event the Governor uses 
 this direct draw authority the Governor must notify the Secretary 
 within 24 hours after any obligation of a payment from the fund. 
 
 To the extent that there is a claim paid out of the fund, the 
 United States is subrogated to all rights of the claimant to recover 
 from the responsible party. The section also requires the Comptrol- 
 ler General to provide an audit review team to audit all payments 
 or other uses of fund and to be sure that it is being properly ad- 
 ministered. 
 
 Subsection (h) provides that claims must be presented to the fund 
 for removal costs within three years after the date of completion of 
 all removal action and for damages within three years after the 
 date on which the loss and its connection with the discharge in 
 question were reasonably discoverable. A claimant may make a 
 claim for natural resources damages three years following the date 
 of natural resources damage assessment regulations if that date is 
 later than otherwise provided. There can be no double payment out 
 of the fund for the same costs of damages. 
 
 Section 104 — Claims procedure 
 
 Except as provided, the bill requires that claims for removal 
 costs or damages are to be presented first to the responsible party 
 or guarantor of the source of the spilled oil. The exceptions to this 
 rule are: where the Secretary has advertised or otherwise notified 
 claimants that they could claim directly against the fund; if the 
 claim is by a responsible party; claims by the Governor of a State 
 
36 
 
 for removal costs; or, claims by a United States claimant when a 
 foreign offshore unit has discharged oil causing damage. 
 
 If a claim is presented to a responsible party or guarantor and 
 such party denies liability for the claim or the claim is not settled 
 within 180 days, the claimant may elect to commence an action in 
 court or may present the claim to the fund. This section also pro- 
 vides that to the extent a claim is presented to a responsible party 
 or guarantor and full compensation is unavailable because of liabil- 
 ity limits or financial incapability, a claim may be presented to the 
 fund. 
 
 Regulations are to be issued to establish procedure for making 
 claims against the fund. 
 
 Section 105 — Designation, notification, and advertisement 
 
 Subsection (a) requires the Secretary to designate the source or 
 sources of a discharge after receiving notice of a spill. If the source 
 is a vessel or a facility, the Secretary is to notify the responsible 
 party and the guarantor, if known. Unless a responsible party or 
 guarantor notifies the Secretary of its denial of the designation, the 
 party must advertise the designation and the procedure by which 
 claims may be presented to such party or guarantor. Failure to ad- 
 vertise can result in such advertisement being undertaken by the 
 Secretary at the responsible party's expense. If the responsible 
 party and guarantor deny a designation or the source of the pollu- 
 tion was a public vessel or the Secretary is unable to designate the 
 source, the Secretary shall advertise to potential claimants the pro- 
 cedure by which claims may be presented to the fund. 
 
 Section 106 — Subrogation 
 
 This section provides that any person including the fund who 
 pays compensation shall be subrogated to all rights, claims, and 
 causes of action that the claimant had under the Act. Actions on 
 behalf of the fund are to be commenced by the Attorney General. 
 
 Section 107 — Financial responsibility 
 
 This section establishes financial responsibility requirements for 
 vessels and facilities. Evidence of financial responsibility must be 
 established, in accordance with regulations issued by the Secretary, 
 for vessels over 300 gross tons (except a non-self-propelled vessel 
 that does not carry oil as cargo or fuel) using any port or place in 
 the United States or the navigable waters, and vessels using the 
 waters of the exclusive economic zone to transship or lighter oil 
 destined for a port or place subject to the jurisdiction of the United 
 States. The financial responsibility demonstrated must be sufficient 
 to meet the maximum amount of liability to which the vessel 
 would be subject under the provisions limiting vessel owners liabil- 
 ity. If the responsible party owns or operates more than one vessel, 
 evidence of financial responsibility is required only to meet the 
 maximum liability applicable to the largest of such vessels. Failure 
 to maintain such evidence will result in the Secretary withholding 
 or revoking clearance to call at a U.S. port, and the Secretary may 
 deny entry or detain any such vessel. 
 
 Offshore facilities must maintain financial responsibility suffi- 
 cient to meet the maximum amount of liability to which the re- 
 
37 
 
 sponsible party could be subject under the Act in a case where the 
 responsible party is entitled to limit its liability. 
 
 Financial responsibility may be established by evidence of insur- 
 ance, surety bond, guarantee, letter of credit, qualification as a self- 
 insurer, or other evidence of financial responsibility satisfactory to 
 the Secretary. 
 
 If liability is established under the Act, the claim may be assert- 
 ed directly against any guarantor providing evidence of financial 
 responsibility. Such a guarantor may invoke rights and defenses 
 available to the responsible party as well as the defense that the 
 incident was caused by the willful misconduct of the responsible 
 party, but the guarantor may not invoke any other defense that 
 might be available in proceedings brought by the responsible party 
 against the guarantor. No guarantor shall be liability in excess of 
 the amount of financial responsibility which the guarantor has pro- 
 vided. 
 
 Any person who, after notice and an opportunity for a hearing, is 
 found to have failed to comply with the requirements for financial 
 responsibility shall be liable to the United States for a civil penalty 
 not to exceed $25,000 per day of violation. In addition to the penal- 
 ty, the Attorney General may secure such relief as necessary to 
 compel compliance with this section, including a judicial order ter- 
 minating operations. 
 
 This section also provides that regulations respecting financial 
 responsibility which have been issued pursuant to any provision of 
 law repealed or superseded by the Act shall remain in full force 
 and effect unless and until new regulations are issued. The Secre- 
 tary may issue a responsible party one certificate of financial re- 
 sponsibility for purposes of meeting the financial responsibility re- 
 quirements of the oil spill liability legislation and any other law. 
 
 Section 108 — Litigation, jurisdiction, and venue 
 
 This section provides that review of any regulation under the Act 
 may be had only in the Circuit Court of Appeals of the United 
 States for the District of Columbia, and application must be made 
 within 90 days of the date such regulations are promulgated. All 
 other causes of action arising under this Act shall be the jurisdic- 
 tion of the United States District Courts without regard to the citi- 
 zenship of the parties or the amount in controversy. Venue shall be 
 in the district in which the incident, injury, or damages occurred, 
 or in which the defendant resides, may be found, has its principal 
 office, or has appointed an agent for service of process. Nothing in 
 the Act affects any action commenced before the date of enact- 
 ment. 
 
 The general period of limitations for an action for damages is 
 three years after the date on which the loss and the connection of 
 the loss with the discharge in question were reasonably discover- 
 able or, if later, and for damages to natural resources, the date on 
 which regulations are issued for natural resource damage assess- 
 ment. Actions for removal costs must be commenced within three 
 years after completion of the removal action. Such an action may 
 be commenced at any time after such costs have been incurred. 
 
 Actions for contribution must be commenced within three years 
 after the date of judgment for recovery of costs or damages or the 
 
38 
 
 date of entry of a judicially approved settlement with respect to 
 such costs or damages. An action for subrogation must be brought 
 within three years after the date of the payment of the claim. 
 
 Section 109 — Relationship to other law 
 
 This section provides that except as provided in the Act, no 
 action arising out of a discharge of oil, or a substantial threat of a 
 discharge of oil, from a vessel or facility into or upon the navigable 
 waters or adjoining shorelines or the waters of the exclusive eco- 
 nomic zone (other than an action for personal injury or wrongful 
 death), may be brought in any court of the United States or of any 
 state or political subdivision thereof. The exception of personal 
 injury or wrongful death includes the preservation of state work- 
 er's compensation laws. There is no intent to affect the rights or 
 obligations established under worker's compensation statutes. 
 
 The section specifically preserves the authority of any state to es- 
 tablish or continue in effect an oil spill fund or account or to re- 
 quire any person to contribute to that fund or account. However, if 
 the State fund or account is supported by contributions levied upon 
 persons who contribute to the fund established by section 9509 of 
 the Internal Revenue Code of 1986, the State fund or account may 
 not be used to compensate any person for damages under this Act. 
 
 This section also specifically provides that nothing affects the au- 
 thority of the United States or any State or political subdivision 
 thereof to impose, or to determne the amount of, any fine or penal- 
 ty for any violation of law relating to an incident. 
 
 This section also provides that a responsible party who estab- 
 lishes and maintains evidence of financial responsibility in accord- 
 ance with the Act is not to be required under any State or local 
 law, rule, or regulation to establish or maintain any other evidence 
 of financial responsibility with respect to discharges of oil. A State 
 is given the authority to enforce, on the navigable waters of the 
 State, the requirements for evidence of financial responsibility im- 
 posed under the Act. 
 
 This section further provides that the Act of March 3, 1851, shall 
 not apply to removal costs which arise out of or directly result 
 from, and damages which are proximately caused by, an incident 
 involving the discharge or substantial threat of discharge of oil. 
 That Act could have the effect if it were to apply of reducing a 
 vessel owner's liability below those levels which are provided in 
 this Act. 
 
 Section 110 — Regulations 
 
 This section provides that the Secretary shall issue such regula- 
 tions as may be necessary to carry out this title. 
 
 Section 111 — Effective date 
 
 This section provides that title I is to apply with respect to an 
 incident occurring after the date of the enactment of the Act. How- 
 ever, payments from the fund may not be made before the com- 
 mencement date for the collection of taxes for deposit into the fund 
 (as such term is defined in section 4611(f)(2) of the Internal Reve- 
 nue Code of 1986). 
 
39 
 
 TITLE II — PREVENTION AND RESPONSE 
 
 Section 201 — Authority to direct responses 
 
 This section provides that in the event of a discharge of oil or the 
 substantial threat of discharge of oil into or upon navigable waters 
 or adjoining shorelines or the waters of the exclusive economic 
 zone, the Secretary or the Administrator of the Environmental 
 Protection Agency, as determined by the President, shall assume 
 the direction of all Federal, state, and private activities regarding 
 the containment, cleanup, removal, and other responses to the dis- 
 charge or threat of discharge. This section is intended to resolve 
 questions concerning the authority of the Secretary or the Admin- 
 istrator to take charge of the response activities following the dis- 
 charge or threat of discharge of oil. The Secretary or the Adminis- 
 trator has clear authority to assume the direction of all cleanup ac- 
 tivities. The extent of the direction of cleanup efforts by the Secre- 
 tary or the Administrator will depend on the circumstances of the 
 spill, including its size, potential for causing damages, and the 
 types of actions which are necessary to respond to the spill. For ex- 
 ample, in the case of smaller spills, which do not present difficult 
 cleanup problems, the immediate physical presence of Federal offi- 
 cials may not be required in order to adequately direct the cleanup 
 activities. 
 
 This section also provides that the assumption of such direction 
 of activities does not affect the assessment of liability under the 
 Act or the authority of the President under section 311(c)(1) of the 
 Federal Water Pollution Control Act relating to the removal of dis- 
 charged oil. The Committee emphasizes that a responsible party's 
 liability attaches at the time of the incident and the liability con- 
 tinues during cleanup activities, including activities at the direc- 
 tion of the Secretary or the Administrator. Defenses available to a 
 responsible party are limited to those specifically enumerated in 
 the bill. This section also is not intended to affect any duty upon a 
 spiller of oil to respond to a spill in the first instance and to mini- 
 mize damages from the spill. 
 
 Section 202 — Response plans 
 
 This section requires the Secretary or the Administrator of EPA, 
 as appropriate to designate those areas for which plans for re- 
 sponding to discharges and threatened discharges of oil are re- 
 quired to be prepared, the persons who are required to prepare 
 such plans, and the persons who are required to pay for the prepa- 
 ration of the plans. The designation is to be made within 180 days, 
 and is to be made in consultation with concerned state officials 
 
 The criteria for determining the areas are as follows: the likeli- 
 hood of a discharge or threatened discharge of oil; the likelihood of 
 significant adverse effects resulting from discharges or threatened 
 discharges; the amount and type of oil handled, stored, or proc- 
 essed; the presence of natural resources in the area which are 
 likely to be damaged by a discharge of oil and the value, unique- 
 ness, and susceptibility of such resources to damage; and, the geo- 
 graphic, topographic, weather, and other conditions which might 
 influence frequency, severity, and effects of oil discharges and re- 
 sponses thereto. 
 
40 
 
 Once an area has been designated, the persons designated to pre- 
 pare the plan must do so and submit in writing, to the Secretary or 
 the Administrator, as appropriate, for approval a plan for respond- 
 ing to discharges and threatened discharges of oil in the area. 
 These plans must be reviewed on a periodic basis. Each plan is to 
 include a description of the general area in which response actions 
 will be required, responsibilities of responsible parties, govern- 
 ments, and others in responding to discharges, and other matters 
 as the Secretary or the Administrator may require. Concerned 
 States and local governments are to be consulted in the prepara- 
 tion of the plans because they are familiar with the area and situa- 
 tion covered by the plan. The Secretary or the Administrator may 
 provide technical assistance in the preparation of a response plan. 
 
 The purpose of the section is to provide broad flexibility in the 
 formulation of plans to respond to potential oil spills in various 
 areas of the country which, because of the factors mentioned in the 
 section, lend themselves to response plans involving more than just 
 the vessel or facility from which a spill or the threat of a spill ema- 
 nates. One example would be an area in which a port or ports and 
 unloading and loading facilities are located in the same general vi- 
 cinity and would be in a position to respond to a spill from a vessel 
 or facility in that area. The plan could include cooperative agree- 
 ments for assistance on a reciprocal or reimbursable basis, the 
 sharing of expenses for the shortage and maintenance in the area 
 of response equipment, the training of personnel for response ac- 
 tivities, and the like. State and local governments should also be 
 participants in the plans. Whether or not existing contingency 
 plans need to be changed will depend on the circumstances of each 
 case. Plans relating to vessels and facilities may lend themselves to 
 incorporation in new plans or may need to be only supplemented 
 by new plans. The determining factor will be what is necessary to 
 achieve a plan which makes the best use of resources which can be 
 brought to bear on a spill or threat of a spill. The section provides 
 the President with the authority and responsibility to evaluate the 
 adequacy of existing plans and to take whatever steps are deter- 
 mined necessary to improve response capabilities. 
 
 The Committee recognizes that there is in place a system for re- 
 viewing local hazardous materials contingency plans at the State 
 level by State Emergency Response Commissions (SERCs). These 
 plans are prepared by Local Emergency Planning Committees 
 (LEPCs) and are not limited just to hazardous chemicals, but can 
 address oil and petroleum products. This system was established 
 under the Emergency Planning and Community Right-to-Know Act 
 of 1986. Any review/ approval process specifically for oil spill con- 
 tingency plans should be closely coordinated with the SERC/LEPC 
 organization. 
 
 Expenses which are incurred by the Secretary or the Administra- 
 tor in carrying out this section are to be paid for out of the fund. 
 
 Section 203 — Review and revision of response capability 
 
 This section requires the Secretary or the Administrator of EPA 
 to conduct an evaluation of the status and effectiveness of person- 
 nel and equipment responding to discharges of oil or threats of dis- 
 charges of oil not later than six months after the date of enact- 
 
41 
 
 ment. The evaluation is to determine, on a regional basis, whether 
 existing personnel and equipment are sufficient for responding to a 
 discharge in an effective and timely manner in the general regions 
 of Alaska, the Pacific Northwest, California, the Gulf of Mexico, 
 the Great Lakes, the North Atlantic, the South Atlantic, Hawaii, 
 and inland waters of the United States. A report on the findings 
 and respective evaluations is to be submitted within one year of en- 
 actment. 
 
 This section also requires that within one year of enactment the 
 Secretary or the Administrator of EPA, as appropriate, is to revise 
 the national contingency plan to require oil response personnel to 
 be subjected to training approved by the Secretary or the Adminis- 
 trator and periodic drills, without prior notice, to demonstrate the 
 continued effectiveness and readiness of oil response teams. 
 
 This section further requires that within six months after the 
 submission of the report by the Secretary or the Administrator of 
 EPA, they shall issue regulations requiring inspection of equip- 
 ment for responding to discharges of oil and the threats of dis- 
 charges of oil. Certification of the equipment must be made not less 
 than once every three years to ensure that the equipment is main- 
 tained in working condition. 
 
 This section also requires that within six months of the report 
 evaluating response personnel and equipment, the Secretary or the 
 Administrator of EPA, as appropriate, must issue regulations re- 
 quiring owners and operators of vessels and facilities to take such 
 action as may be necessary to ensure that sufficient personnel and 
 equipment are available, on a regional and collective basis, for re- 
 sponding to discharges of oil and threats of discharges of oil. If the 
 owners and operators of vessels and facilities do not take all action 
 required by the Secretary or the Administrator, the Secretary or 
 the Administrator must take such action as is necessary to ensure 
 the presence of sufficient personnel and equipment. 
 
 All expenses incurred by the Secretary and the Administrator of 
 EPA in carrying out this section are to be paid from the fund. 
 
 Section 204 — Computer listing of emergency response resources and 
 availability of agency data 
 
 Section 204 requires the National Response Center, within one 
 year after the date of enactment and in consultation with State of- 
 ficials, to establish, maintain, and annually revise a comprehensive 
 nationwide computer listing of emergency response resources 
 which are available to and are appropriate for use in responding to 
 discharges and substantial threats of discharges of oil. This listing 
 is to include a continually updated description of all government 
 and private emergency response resources, a nationwide listing of 
 persons having emergency response resources available for sale or 
 lease, and a listing of the names, telephone numbers, and areas of 
 expertise of persons who are experts in responding to discharges or 
 threats of discharges of oil and their effects. The National Re- 
 sponse Center is to provide continuous access to the information 
 contained in the listing to response teams, on-scene coordinators, 
 and all State and local government officials responsible for direct- 
 ing response to discharges and substantial threats of discharges of 
 oil. 
 
42 
 
 The head of each Federal agency having a representative on the 
 National Response Team is to ensure the ready accessibility to all 
 relevant data in the possession of each agency, other than classi- 
 fied data, regarding the geographic, oceanographic, hydrologic, nat- 
 ural resource, and meteorological characteristics of the navigable 
 waters or adjoining shorelines and the waters of the exclusive eco- 
 nomic zone for which the National Contingency Plan is applicable. 
 
 Finally, this section requires the President to take such actions 
 as may be necessary to encourage appropriate international organi- 
 zations to establish an international inventory of emergency re- 
 sponse resources. The March 24, 1989 spill in Alaska demonstrated 
 that international cooperation may be necessary in responding to 
 very large spills. 
 
 Section 205 — Vessel traffic systems 
 
 This section requires the Secretary to make a survey of areas of 
 navigable waters to determine the need for new, expanded, or im- 
 proved vessel traffic systems. Based on the results of the survey, 
 the Secretary is to establish, in order of priority, those areas of 
 navigable waters which are in need of new, expanded, or improved 
 vessel traffic systems. Factors to be included in the determination 
 of priority include the nature, volume, and frequency of vessel traf- 
 fic in the area and the risks of collisions, spills, and damages asso- 
 ciated with such traffic which could be reduced or eliminated by 
 installation, expansion, or improvement of a vessel traffic system. 
 The priority list is to be submitted to Congress within one year 
 after enactment. 
 
 The Secretary is authorized to acquire, install, and operate such 
 equipment in vessel traffic systems as necessary for making im- 
 provements and expansions contained on the priority list. The Sec- 
 retary is also authorized to make participation in vessel traffic sys- 
 tems operated by the Secretary mandatory for such vessels as the 
 Secretary deems appropriate. 
 
 To finance the additional cost of these vessel traffic systems, the 
 Secretary is directed to establish and collect from users of the 
 vessel traffic systems such fees as the Secretary determines are 
 necessary. The fees must be established in accordance with section 
 9701 of title 31 of the United States Code, which requires fees to 
 accurately reflect costs to the government. These fees collected by 
 the Secretary are to be credited and available to the Secretary, 
 without fiscal year limitation. This section shall not be construed 
 as altering or expanding the duties and liabilities of the United 
 States for the performance or functions of services for which fees 
 are collected, and the collection of the fees does not constitute an 
 express or implied undertaking by the United States government 
 to perform any service or activity in a certain manner. 
 
 This section also requires the Secretary to conduct a study of 
 whether the Secretary should be given additional authority to 
 direct the movement of vessels upon navigable waters and whether 
 such authority should be exercised, and to submit to Congress a 
 report of the results of the study within one year of enactment. 
 
 The Committee does not intend this section to supersede the 
 vessel traffic systems provisions contained in the Coast Guard Au- 
 thorization bill for fiscal year 1990 and the Dire Supplemental Ap- 
 
43 
 
 propriations Bill for fiscal year 1989. This section is a supplement 
 to those provisions. 
 
 Section 206 — Navigational aids 
 
 This section requires the Secretary to conduct a study to deter- 
 mine areas in which navigation risks are sufficient to require tug 
 escorts of tankers or other navigation aids to improve the safe 
 movement of tankers. The Secretary is to report to the Congress in 
 one year and is authorized to issue such regulations as may be nec- 
 essary to implement the recommendations contained in the report. 
 
 Section 207 — Periodic gauging of plating thickness or commercial 
 vessels 
 
 This section requires the Secretary to issue regulations, within 
 one year of enactment, establishing minimum standards for the 
 plating thickness of vessels transporting oil in bulk or commercial 
 quantities, and requiring periodic gauging of the plating thickness 
 of all vessels over thirty years old which are used to transport such 
 oil. 
 
 The Committee notes the U.S. Coast Guard has not been able to 
 inspect every vessel that enters certain harbors. In particular, the 
 Committee notes that in New York Harbor, the Coast Guard was 
 only able to inspect 58 percent of the foreign tank vessels entering 
 the Harbor in one year recently. Yet of those vessels that were in- 
 spected, the Coast Guard found that 5 percent had safety or other 
 defects that constituted a violation or received a letter of warning. 
 It is the Committee's desire that the Coast Guard report to the 
 Congress about its ability to conduct inspections in harbors where 
 it deems such inspections are appropriate, what resources the 
 Coast Guard would need to conduct those inspections and the oil 
 spill prevention and emergency response benefits such inspections 
 would yield. 
 
 Section 208 — Overfill and tank level or pressure monitoring devices 
 
 This section requires the Secretary, within one year of enact- 
 ment, to issue regulations establishing minimum standards for de- 
 vices for warning persons of overfills and tank levels of oil and 
 cargo tanks and devices for monitoring the pressure of oil cargo 
 tanks. Within one year of enactment the Secretary is to issue regu- 
 lations establishing requirements concerning the use of overfill de- 
 vices and tank level or pressure monitoring devices. 
 
 Section 209 — Tanker personnel 
 
 This section requires the Secretary, within one year of enact- 
 ment, to conduct a study to determine appropriate crew sizes for 
 tankers and qualifications of personnel on such tankers. The Secre- 
 tary is to report the findings to Congress together with recommen- 
 dations for implementing the results of the study. 
 
 Section 210 — Use of liners 
 
 This section requires the Administrator of EPA to conduct a 
 study to determine whether liners should be used as a secondary 
 means of containment at onshore facilities used for the bulk stor- 
 age of oil and located near navigable waters to prevent leaching of 
 
44 
 
 oil into the ground and to aid in leak detection. The administrator 
 is to report on the study within one year of enactment and is au- 
 thorized to issue such regulations as may be necessary to imple- 
 ment the recommendations contained in the report. 
 
 Section 211 — Modifications to dredges 
 
 This section requires the Secretary of the Army to conduct a 
 study to determine the feasibility of making dredges usable in re- 
 sponding to a discharge of oil or threats of discharges of oil. A 
 report to Congress is to be submitted within one year of the date of 
 enactment. During the Alaska oil spill cleanup, the Army Corps of 
 Engineers provided two dredges to assist in oil recovery operations. 
 The Committee believes that there is a need for the Corps to ex- 
 plore the possibility of dredge modifications on a wider scale in 
 order to facilitate future recovery operations. 
 
 Section 212 — Tanker free zones 
 
 This section requires the Secretary to conduct a study of whether 
 to designate areas of the navigable waters and exclusive economic 
 zone as zones where the movement of tankers should be prohibited 
 or limited. If the Secretary determines that such zones should be 
 designated, the Secretary is to study which areas to designate and 
 what limitation should be placed on tanker traffic. Factors to be 
 considered include existing navigational risk based on geography, 
 weather, and volume of traffic; the potential for danger to natural 
 resources; and, availability of alternative methods for transporting 
 oil, such as deepwater port facilities. The report required under 
 this section is to be submitted within one year of enactment. 
 
 Section 213 — Superiority of Federal pilots licenses 
 
 This section requires the Secretary to conduct a study to deter- 
 mine whether licenses issued by the Secretary authorizing persons 
 to serve as pilots of commercial vessels should be legally superior 
 to licenses issued by the States for such purposes, and to report to 
 Congress within one year of the date of enactment on the results of 
 the study. This section is not intended to encourage a decrease in 
 licensing requirements or to reduce licensing qualifications to any 
 type of a lowest common denominator. 
 
 Section 214 — Research and development 
 
 This section requires the President to establish a program for 
 conducting oil pollution research and development and to designate 
 appropriate Federal agencies to participate in such a program. 
 
 The general purposes of the program include (1) development of 
 new or improve methods to contain discharges of oil from vessels or 
 facilities; (2) development of new or improved methods for oil recov- 
 ery, cleanup, and disposal which are effective and protect the envi- 
 ronment; and (3) development of effective models to predict the ef- 
 fects of discharges of oil and the fate of such oil, including the de- 
 velopment of baseline data necessary for determining such effects; 
 (4) development of technologies and methods to protect public 
 health and safety from discharges of oil; (5) development of new or 
 improve methods to ensure the health and safety of response per- 
 sonnel; (6) development of adequate worker training standards for 
 
45 
 
 oil discharge response personnel; (7) development of new or im- 
 proved methods to restore and rehabilitate natural resources dam- 
 aged by discharges of oil; and, (8) determination of long-term effects 
 of discharges of oil on fish and wildlife. 
 
 The program specifically requires the President to direct the Sec- 
 retary to conduct research on changes in vessel design and con- 
 struction criteria (such as tank size, vessel size, double hulls, and 
 ballast sides) for the purpose of reducing the likelihood of dis- 
 charges of oil, and to direct the Secretary and the Administrator of 
 EPA to conduct a joint research and development program for im- 
 proving technology to prevent discharges of oil and to minimize the 
 size of such discharges. Such a program would include technologies 
 for measuring the ullage of a vessel, preventing discharges from 
 tank vents, preventing discharges during lightering and bunkering 
 operations, and containing discharges on the deck of a vessel. 
 
 The Committee believes that research and development efforts 
 with regard to oil spill technology development could be located at 
 research centers which are uniquely located and qualified to con- 
 duct research in the various climates and marine environments 
 that exist in various parts of the country. 
 
 In designating the Federal agencies participating in this pro- 
 gram, the President should consider the program and capabilities 
 of the Army Corps of Engineers. As demonstrated in the Alaska oil 
 spill cleanup and as detailed in Committee hearings, The Corps has 
 considerable expertise in a number of research areas related to oil 
 spills and in the development of procedures to assess and remedy 
 their impacts. For example, the Corps has experience in remote 
 sensing and data management that would be useful in locating and 
 tracking oil spills, oil spill motion and dispersion modeling, and 
 habitat restoration. 
 
 The President if required to submit annual reports to Congress 
 on the research and development program and there are author- 
 ized to be appropriated from the fund $10 million for each of fiscal 
 years 1991 and 1992, $7.5 million for fiscal year 1993, and $5 mil- 
 lion for each of fiscal years 1994 and 1995. 
 
 Section 215 — Consideration of alcohol abuse 
 
 Subsection (a) amends chapter 71 of title 46 of the United States 
 Code by adding a new section 7115 to prohibit the Secretary from 
 issuing or renewing a license or certificate of registry for an indi- 
 vidual who the Secretary determines is a current or chronic abuser 
 of alcohol or fails to make available to the Secretary certain driv- 
 ing record information. The driving record information which is re- 
 quired to be available is that which would be available in accord- 
 ance with section 206(b)(4) of the National Driver Registry Act of 
 1982. This section also authorizes the Secretary to conduct such in- 
 vestigations as are necessary to determine if an individual is a cur- 
 rent or chronic abuser of alcohol, if the Secretary receives reliable 
 information that an applicant has been found guilty of an alcohol- 
 related infraction resulting in suspension or revocation of a motor 
 vehicle operator license. 
 
 This section also amends section 7302 of title 46 of the United 
 States Code prohibiting the Secretary from issuing or renewing a 
 merchant mariners document for an individual who the Secretary 
 
46 
 
 determines is a chronic or current abuser of alcohol or who fails to 
 make available driving record information from the National 
 Driver Register. The Secretary is also authorized to make investi- 
 gations of the individual as for renewing licenses and certificates of 
 registry. The Secretary is also given authority to determine the 
 period of validity of the merchant mariners document. 
 
 Section 7703 of title 46 of the United States Code is amended to 
 permit the Secretary to suspend or revoke a license, certificate of 
 registry, or merchant mariner's document of an individual if the 
 Secretary determines the individual is a current or chronic abuser 
 of alcohol or the individual fails to make available driving record 
 information from the National Driver Registry. The Secretary is 
 authorized to conduct investigations to determine the validity of in- 
 formation on the current or chronic abuse of alcohol. Such a sus- 
 pension may not be terminated until the individual provides suffi- 
 cient proof that the individual is no longer a current or chronic 
 abuser of alcohol. 
 
 This section also amends section 8101 of title 46, the United 
 States Code, to provide that if the chief mate or equivalent and the 
 next senior crew member on board a vessel determine that reason- 
 able cause exists to believe that the master or individual in com- 
 mand is intoxicated as the result of the use of dangerous drugs or 
 alcohol and is therefore incapable of commanding the vessel, the 
 chief mate shall temporarily relieve the master and temporarily 
 assume command of the vessel and shall immediately enter the de- 
 tails in the vessel log and report such details to the Secretary by 
 the most expeditions means available. The chief mate is also re- 
 quired to report the circumstances in writing to the Secretary 
 within twelve hours after the vessel arrives at its destination. 
 
 Section 216 — Access to national driver register 
 
 This section amends the National Driver Register Act of 1982 to 
 provide that any individual who has applied for or received a li- 
 cense or certificate of registry or a merchant mariner's document 
 or has applied for a renewal of such license, certificate, or docu- 
 ment, may request the chief driver licensing official of a state to 
 transfer information regarding the individual to the Secretary. The 
 Secretary may receive such information and shall, prior to using 
 such information, make it available to the individual for review 
 and written comment. Information received by the Secretary may 
 not otherwise be used or divulged. 
 
 TITLE III — IMPLEMENTATION OF INTERNATIONAL CONVENTIONS 
 
 Section SOI — Definitions 
 
 This section contains the definitions for specific terms used in 
 title III so that they will have the same meaning as under the 
 International Conventions which would be implemented by this 
 title. 
 
 Section 302 — Applicability of Conventions 
 
 This section provides that in any case in which the International 
 Convention of Civil Liability for Oil Pollution Damage, 1984, and 
 the International Convention on the Establishment of the Interna- 
 
47 
 
 tional Fund for Compensation for Oil Pollution Damage, 1984, are 
 in effect with respect to the United States, liability relating to pol- 
 lution damage arising from an incident involving a ship shall be 
 determined in accordance with those two conventions. Ratification 
 of those conventions is currently awaiting action in the United 
 States Senate. 
 
 Section 303 — Recognition of international fund 
 
 This section recognizes the International Oil Pollution Compen- 
 sation Fund under the laws of the United States as a legal person 
 and the director of the fund is recognized as its legal representa- 
 tive. The Secretary of State is deemed to have been appointed for 
 the service of process in any legal proceedings involving the Inter- 
 national Fund within the United States. The fund and its assets 
 are exempt from all direct taxation and payment of customs duties 
 in the United States. 
 
 Section 304 — Action in U.S. courts 
 
 This section provides that in an action against the owner of a 
 ship or its guarantor under the Civil Liability Convention, the 
 party to the litigation shall serve a copy of the complaint in a sub- 
 sequent pleading upon the International Fund at the same time 
 the complaint or other pleading is served upon the opposing par- 
 ties. The International Fund may intervene as a matter of right in 
 any action brought in a court in the United States against the 
 owner of a ship or its guarantor under the Civil Liability Conven- 
 tion. 
 
 Section 305 — Contribution to international fund 
 
 This section provides that the amount of any contribution to the 
 International Fund which is required to be made under article 10 
 of the Fund Convention (which outlines contribution requirements 
 for countries which are parties to the fund) by any person with re- 
 spect to oil received in any port, terminal installation, or other in- 
 stallation located in the United States is to be paid to the Interna- 
 tional Fund from the Trust Fund established by section 9509 of the 
 Internal Revenue Code of 1986. This section also authorizes the 
 Secretary to require persons required to make contributions under 
 the international agreement to provide all information relating to 
 that oil as may be necessary to determine the appropriate contribu- 
 tion and to fulfill U.S. obligations under the conventions. 
 
 Section 306 — Recognition of foreign judgments 
 
 This section provides that a final judgment of a court of any 
 country which is a party to the Civil Liability Convention or to the 
 Fund Convention in an action for compensation under either con- 
 vention shall be recognized by any court of the United States 
 having jurisdiction under this act, when that judgment has become 
 enforceable in that country and is no longer subject to ordinary 
 forms of review except where the judgment was obtained by fraud 
 or the defendant was not given reasonable notice and a fair oppor- 
 tunity to present its case. 
 
48 
 
 Section 307 — Financial Responsibility 
 
 This section provides that the owner of a ship documented under 
 the laws of the United States and subject to the Civil Liability Con- 
 vention is to establish and maintain evidence of financial responsi- 
 bility as required in article VII of the Civil Liability Convention. 
 These financial responsibility requirements also extend to the 
 owners of a ship which enters or leaves a port or terminal of the 
 United States or uses an Outer Continental Shelf facility or an off- 
 shore facility that is or was licensed under the Deep Water Port 
 Act of 1974. Any ship carrying only oil as cargo, fuel, or residue, 
 which has on board a valid certificate issued in accordance with ar- 
 ticle VII of the Civil Liability Convention shall be considered as 
 having met the requirements of section 107. 
 
 The Secretary is authorized to issue any certificate of financial 
 responsibility which the United States may issue under the Civil 
 Liability Convention, and the Secretary must withhold or revoke 
 the clearance required by section 4197 of the Revised Statutes of 
 any ship which does not have a certificate demonstrating compli- 
 ance with this section. The Secretary is authorized to deny entry to 
 any facility or to any port or place in the United States any ship 
 which does not produce the necessary certificate demonstrating 
 compliance. Any person who fails to comply with the financial re- 
 sponsibility requirements or fails to provide information necessary 
 to comply with the requirements for contribution to the Interna- 
 tional Fund, or fails to comply with any regulation issue under this 
 title shall be liable to the United States for a civil penalty, not to 
 exceed $25,000 per day of violation. 
 
 This section also provides that the United States waives all de- 
 fenses based on sovereign immunity with respect to any controver- 
 sy arising under the Civil Liability Convention or the Fund Con- 
 vention relating to any ship owned by the United States and used 
 for commercial purposes. 
 
 Section 308 — Regulations 
 
 This section authorizes the Secretary to issue such regulations as 
 may be necessary to carry out this title and all obligations of the 
 United States under the International Convention on Civil Liabil- 
 ity for Oil Pollution Damage, 1984, and the Fund Convention. 
 
 TITLE IV — MISCELLANEOUS PROVISIONS 
 
 Section 401 — Trans-Alaska pipeline fund 
 
 This section amends the liability provisions of the Trans-Alaska 
 Pipeline Authorization Act to reflect that oil spilled into or upon 
 the navigable waters of the United States will be covered by the 
 provisions of the new Oil Pollution, Prevention, Response, Liability, 
 and Compensation Act of 1989. The section restricts the coverage of 
 the Trans-Alaska Pipeline Authorization Act liability provisions to 
 spills in the state of Alaska for spills occurring from the pipeline. 
 It also repeals the liability provisions for spilling of oil into the 
 navigable waters in order to conform with the new liability provi- 
 sions in the bill. The Trans- Alaska Pipeline Liability Fund is re- 
 tained for the payment of claims which arise prior to the date of 
 enactment of this Act. 
 
49 
 
 The Trans-Alaska Pipeline Authorization Act established liabil- 
 ity for damages from activities along or in the vicinity of the Alas- 
 kan pipeline right-of-way and for discharges of oil from vessels 
 loaded at terminals of the Trans- Alaska pipeline. For a discharge 
 from a vessel, strict liability for all claims arising out of any one 
 incident can not exceed $100 million. The owner and operator of 
 the vessel are liable for the first $14 million of allowed claims and 
 the Trans-Alaska Pipeline Liability Fund, which is established by 
 the act, is liable for the remaining claims. The Trans- Alaska Pipe- 
 line Fund is financed by a fee of fives cents per barrel of oil collect- 
 ed at the time the oil is loaded onto a vessel. As provided in the 
 Act, the collection of the fee ceased when $100 million had been 
 accumulated in the Fund. No claims have been paid from the Fund 
 and the current balance is approximately $248 million. 
 
 There are proposals to rebate the Fund to those entities which 
 have contributed to the Fund and also to deposit the Trans-Alaska 
 Fund into the new oil spill Fund both with and without a credit for 
 previous contributions to the Trans-Alaska Fund. The issue has 
 been raised whether transferring the Trans-Alaska Fund to the 
 new Fund could constitute a taking without just compensation in 
 violation of the Fifth Amendment. This issue has not been re- 
 solved. The question of ownership of the Trans-Alaska Fund arises 
 because the Fund, although created in statute, is administered by a 
 government chartered non-profit corporation. There is also a ques- 
 tion of whether a credit could satisfy Fifth Amendment require- 
 ments if the Trans-Alaska Fund were transferred to the new Fund 
 and the contributors given a credit against tax payments into the 
 Fund. 
 
 Section 402 — Intervention of the High Seas Act 
 
 This section amends section 17 of the Intervention on the High 
 Seas Act to provide that the Oil Spill Liability Trust Fund is to be 
 available to the Secretary for oil spill response actions taken pursu- 
 ant to that Act. 
 
 Section 403 — Federal Water Pollution Control Act 
 
 This section amends section 311 of the Federal Water Pollution 
 Control Act, the section relating to oil spill response, to require the 
 designation, establishment, and maintenance of a strike force con- 
 sisting of at least four teams of strike force personnel. It also 
 amends the section to provide specific authority to safeguard 
 against oil spills and to conduct research and development into 
 methods and techniques to improve existing technology for re- 
 sponding to oil spills. 
 
 The authority of the President to assure abatement of actual or 
 threatened discharges of oil is amended to authorize the issuance of 
 such administrative orders as may be necessary to protect the 
 public health and welfare. This is in addition to existing authority 
 of the Attorney General to secure such relief as may be necessary 
 to abate the threat. 
 
 Failure without sufficient cause to comply with an administra- 
 tive order may result in the Attorney General bringing an action 
 to enforce the order and to assess civil penalties of not more than 
 $25,000 a day for each violation, and to assess three times the re- 
 
50 
 
 moval costs or damages incurred by the fund as a result of the fail- 
 ure to comply. 
 
 Authority to enforce these new provisions is in the United States 
 district courts. This section also contains several other amend- 
 ments to the Federal Water Pollution Control Act which are con- 
 forming in nature reflecting the enactment of the new oil spill li- 
 ability law. 
 
 Finally, the penalties in section 311 are changed to provide that 
 the penalty for failure to report an oil spill can be punished by a 
 fine in accordance with the applicable provision of title 18 of the 
 United States Code or imprisonment of not more than three years, 
 or five years in the case of a subsequent second conviction, and to 
 increase the penalty for a discharge of oil from $5,000 for each of- 
 fense to $25,000 for each day of the offense. 
 
 Section 404 — Deepwater Port Act 
 
 This section contains conforming amendments to the Deepwater 
 Port Act of 1974 to conform with the new requirements contained 
 in this Act. The amounts remaining in the Deepwater Port Liabil- 
 ity Fund are transferred to the new Oil Spill Liability Trust Fund 
 and all remaining liabilities are assumed by the new fund. 
 
 Section 405 — Outer Continental Shelf Lands Act Amendments of 
 1978 
 
 The section repeals title III of the Outer Continental Shelf Lands 
 Act Amendments of 1978. It also provides that amounts remaining 
 in the Offshore Oil Pollution Compensation Fund are to be deposit- 
 ed into the new Oil Spill Liability Trust Fund and such fund is to 
 assume all liability incurred by the Offshore Oil Pollution Compen- 
 sation Fund. 
 
 Section 406 — Qualified authorizing legislation 
 
 This section provides that this Act is to be considered as quali- 
 fied authorizing legislation for purposes of section 4611(f)(2)(B) of 
 the Internal Revenue Code of 1986 so that taxes on crude oil which 
 will constitute the Oil Spill Liability Trust Fund can begin to be 
 collected. 
 
 Section 407 — Effective date 
 
 This section provides that sections 401, 402, 403 (other than sub- 
 section (j)), 404, and 405 are to be effective on the commencement 
 date (as such term is defined in section 4611(f)(2) of the Internal 
 Revenue Code of 1986) that is the date on which taxes are begun to 
 be collected to finance the new Oil Spill Liability Trust Fund. 
 
 Compliance With Clause 2(1) of Rule XI of the Rules of the 
 House of Representatives 
 
 (1) With reference to clause 2(1)(3)(A) of rule XI of the Rules of 
 the House of Representatives, the Subcommittee on Investigations 
 and Oversight did hold hearings on National Oil Spill Contingency 
 Planning and Response Capabilities on May 10, 1989, but findings 
 or recommendations have not been made. The Subcommittee on 
 
51 
 
 Water Resources did hold a hearing on June 28, 1989, on the sub- 
 ject matter of this legislation. 
 
 (2) With reference to clause 2(1)(3)(B) of rule XI of the Rules of 
 the House of Representatives, H.R. 1465, as reported, does not pro- 
 vide new budget authority or increase tax expenditures, according- 
 ly, a statement pursuant to section 308(a) of the Congressional 
 Budget Act is not required. 
 
 (3) With reference to clause 2(1)(3)(C) of rule XI of the Rules of 
 the House of Representatives, the Committee has received the 
 report on H.R. 1465 prepared by the Congressional Budget Office 
 under section 403 of the Congressional Budget Act. The Report is 
 as follows: 
 
 U.S. Congress, 
 Congressional Budget Office, 
 Washington, DC, September 14, 1989. 
 Hon. Glenn M. Anderson, 
 
 Chairman, Committee on Public Works and Transportation, 
 House of Representatives, Washington, DC. 
 
 Dear Mr. Chairman: The Congressional Budget Office has pre- 
 pared the attached cost estimate for H.R. 1465, the Oil Pollution 
 Prevention, Response, Liability and Compensation Act of 1989. 
 
 If you wish further details on this estimate, we will be pleased to 
 provide them. 
 
 Sincerely, 
 
 Robert D. Reischauer, 
 
 Director. 
 
 Congressional Budget Office Cost Estimate 
 
 1. Bill number: H.R. 1465. 
 
 2. Bill title: Oil Pollution Prevention, Response, Liability and 
 Compensation Act of 1989. 
 
 3. Bill status: As amended and ordered reported by the House 
 Committee on Public Works and Transportation on August 3, 1989. 
 
 4. Bill purpose: H.R. 1465 would consolidate federal oil pollution 
 response activities into one entity, the Oil Spill Liability Trust 
 Fund (OSLTF), which would provide for the cleanup, restoration of 
 natural resources and compensation of economic loss from oil spills 
 that threaten U.S. resources or occur on or near U.S. navigable 
 waters. Monies in the OSLTF would also be available for adminis- 
 trative, operating and oversight expenses, including start-up and 
 ongoing costs incurred by the U.S. Coast Guard (USCG) and other 
 federal agencies to implement titles II and IV of this bill. Annual 
 contributions to the International Fund (should the International 
 Fund Convention be ratified by the United States) would also be 
 paid from the OSLTF. 
 
 Title II of the bill would provide for enhancements and revisions 
 in federal and private emergency preparedness efforts. The bill 
 would require the USCG to implement the title's requirements 
 through the promulgation of regulations and the completion of sev- 
 eral studies. In addition, the title would require the President to 
 establish an oil pollution research and development program. For 
 this purpose, the bill would authorize appropriations from the 
 
52 
 
 OSLTF of $10 million for each of fiscal years 1991 and 1992, $7.5 
 million for 1993, and $5 million a year for 1994 and 1995. 
 
 Under Title IV, the four existing oil pollution funds and compen- 
 sation program would be terminated approximately 30 days after 
 enactment of this bill. As of that date, unexpected balances in the 
 U.S. Coast Guard's Pollution Fund (known as the "311k fund") 
 would be transferred to the general fund of the U.S. Treasury, 
 while expended balances of the Deepwater Port Liability (DWPF) 
 and Offshore Oil Compensation (OOCF) funds would be credited to 
 the OSLTF. 
 
 5. Estimated cost to the Federal Government: The OSLTF was 
 created by Public Law 99-509, the Omnibus Reconciliation Act of 
 
 1986, which also contained amendments to the Internal Revenue 
 Code (concerning related taxes) that would have taken effect only if 
 suitable authorizing legislation had been enacted by September 1, 
 
 1987. The Technical and Miscellaneous Revenue Act of 1988 ex- 
 tended this deadline to December 31, 1990. As stated in Section 406 
 of the bill, H.R. 1465 is such authorizing legislation, and its enact- 
 ment would therefore trigger the imposition of a 1.3 cent per-barrel 
 tax on all crude oil received by U.S. refineries and on imported pe- 
 troleum producers. Consequently, the budgetary impact of H.R. 
 1465 includes both revenue and spending effects, as shown in the 
 following table. 
 
 [By fiscal year, in millions of dollars] 
 
 1990 1991 1992 1993 1994 
 
 Estimated Revenue Effects: 
 
 Tax of 1.3 cents per barrel of oil- 
 Revenue gain credited to the trust fund 16 36 13 
 
 Revenue gain, net of income and payroll tax offsets 12 27 10 
 
 Estimated Spending Effects: 
 
 Estimated authorization level 30 31 32 30 28 
 
 Estimated outlays 25 25 30 31 30 
 
 Net Increase or Decrease (-) in the Deficit 1 13 -2 20 31 30 
 
 1 Outlays less net revenue gain. 
 
 The above table does not include federal outlays that may result, 
 in the event of an oil spill, from the new coverage for third-party 
 economic losses, because there is no basis for projecting such costs. 
 
 The costs of this bill fall within budget functions 300 and 400. 
 
 Basis of estimate: According to the provisions of Public Law 99- 
 509, the creation of the OSLTF and the 1.3 cent-per barrel tax 
 would become effective on the first day of the first calendar month 
 beginning more than 30 days after enactment of such legislation 
 (referred to as the ' 'commencement date"). For the purposes of this 
 estimate, CBO has assumed that H.R. 1465 will be enacted by the 
 end of October, 1989, resulting in a commencement date for the 
 OSLTF financing tax and expenditures from the OSLFT of Decem- 
 ber 1, 1989. As of this date, the estimated balance in the OSLTF 
 (consisting of amounts transferred from the DWPF and OOCF) 
 would be about $155 million. These transfers to the new fund and 
 the transfer of 311k fund balances to the general fund would be in- 
 
53 
 
 tragovernmental transactions having no net impact on the federal 
 budget. 
 
 Revenue effects. The revenue estimates shown in the above table 
 were prepared by the Joint Committee on Taxation (JCT). As 
 shown in the first line of the table, the tax of 1.3 cents per barrel 
 of oil would yield an estimated $65 million in revenues for the 
 trust fund over the 1990-1992 period. These amounts included esti- 
 mated credits that taxpayers may take against the OSLTF financ- 
 ing tax for amounts paid before January 1987 into the OOCF and 
 the DWPF (plus interest on these funds). The net revenue gain to 
 the government, including income and payroll tax offsets, is esti- 
 mated to be $49 million over three years (as shown in the second 
 line of the table). The OSLTF financing tax would be in effect from 
 the assumed commencement date of December 1, 1989 through De- 
 cember 31, 1991. The tax would expire sooner if cumulative tax col- 
 lections credited to the trust fund exceed $300 million. The JCT es- 
 timates that collections credited to the trust fund between Decem- 
 ber 1, 1989 and December 31, 1991 would be about $65 million. 
 
 Spending effects. The authorization level and outlays shown in 
 the table reflect additional operating and administrative costs that 
 would be incurred as a result of this bill's enactment, assuming ap- 
 propriation of the necessary sums. These include nonrecurring 
 start-up costs as well as additional ongoing expenses associated 
 with the administration of a greatly expanded compensation 
 system and the maintenance of two additional response teams 
 under the National Contingency Plan. Also included are interim 
 costs associated with the revision of liability regulations and finan- 
 cial responsibility certificates. Research and development costs 
 have been included at the authorized level ($37.5 million over the 
 1991-1995 period). 
 
 Variable cleanup and oversight costs under the new bill are ex- 
 pected to be similar to those now incurred by the Coast Guard. 
 Such costs are difficult to estimate because significant oil spills are 
 rare and unpredictable. While thousands of spills may occur in any 
 year, their total costs, including claims, would most often not be 
 high enough to exceed the bill's specified liability limits. 
 
 At present, the vast majority of spills under the jurisdiction of 
 the Coast Guard are cleaned up by the responsible party and re- 
 quire only federal oversight. For example, no spills occurring at off- 
 shore production or port facilities have required any federal ex- 
 penditure at all. About 90 percent of oil spills that fall under the 
 jurisdiction of the Federal Water Pollution Control Act (which cre- 
 ated the 311k fund) are cleaned up by the responsible party and 
 require only Coast Guard oversight activities at the spill site to be 
 funded by the federal government. Federal cleanup and oversight 
 expenditures under H.R. 1465 would be about the same as under 
 current law. In absence of any large spills, such costs would be ex- 
 pected to approximate the baseline level of about $7 million annu- 
 ally (at 1989 price levels), of which about half would be recovered 
 from responsible parties within two years of the spill. Because such 
 spending would not represent any net increase in federal outlays, 
 no amounts have been included in this estimate. 
 
 H.R. 1465 also would permit claims for third-party economic 
 losses to be paid from the fund when responsible parties cannot be 
 
54 
 
 located or do not pay or when claims exceed liability limits. Out- 
 lays for such damages are impossible to estimate because they 
 depend on a number of unpredictable factors such as the number 
 and size of spills as well as the particular circumstances surround- 
 ing each incident (for example, the proximity to land or fishing 
 grounds). Even if it were possible to assess the probability of spill 
 occurrence near high-risk areas, it would be impossible to predict 
 the behavior of responsible parties or claimants, which is likely to 
 be the most important determinant of claim costs. 
 
 If catastrophic spills occur, payments from the fund would be 
 capped at $1 billion per incident. However, because claims against 
 the OSLTF would be subject to the availability of funds, actual fed- 
 eral outlays probably would be much less. Under the provisions of 
 Public Law 99-499, federal liability is limited at all times to the 
 OSLTF balance, which may be augmented by up to a total of $500 
 million in repayble advances from the Treasury. Assuming that the 
 fund is used for all of the purposes authorized in Section 103, CBO 
 estimates that less than $150 million would be available in the 
 OSLTF at any time to finance a major spill. Therefore, even with 
 advances at the maximum authorized level, total fund expenditures 
 for a major spill could not exceed $650 million. Given the financing 
 levels provided in Public Law 99-499, the fund would be unable to 
 repay advances of any significant amount. 
 
 Finally, H.R. 1465 would provide that, if and when the Interna- 
 tional Convention on Civil Liability for Oil Pollution Damage, 1984, 
 and the International Convention on the Establishment of an Inter- 
 national Fund for Compensation for Oil Pollution Damage conven- 
 tions are ratified by the United States, annual contributions to the 
 International Fund due from U.S. interests would be paid from the 
 OSLTF. Annual contributions would depend on actual spill experi- 
 ence and cannot be estimated precisely. However, based on past 
 USCG analyses, CBO estimates that the U.S. annual contribution 
 would be about $10 million a year by 1993, if the International 
 Convention is ratified by that time. 
 
 6. Estimated cost to State and local governments: None. 
 
 7. Estimate comparison: None. 
 
 8. Previous CBO estimate: On September 12, 1989, the Congres- 
 sional Budget Office transmitted a cost estimate for H.R. 3027, the 
 Oil Pollution Prevention, Response, Liability and Compensation 
 Act of 1989, as ordered reported by the House Committee on Public 
 Works and Transportation on August 3, 1989. The CBO cost esti- 
 mate for H.R. 1465 is identical to that estimate for H.R. 3027. 
 
 9. Estimate prepared by: Deborah Reis and Eric Nicholson. 
 
 10. Estimate approved by: James L. Blum, Assistant Director for 
 Budget Analysis. 
 
 (4) With reference to clause 2(1)(3)(D) of rule XI of the Rules of 
 the House of Representatives, the Committee does not have over- 
 sight findings and recommendations from the Committee on Gov- 
 ernment Operations on H.R. 1465. 
 
 Cost of Legislation 
 
 Clause 7(a) of rule XIII of the Rules of the House of Representa- 
 tives requires a statement of the estimated costs of the United 
 
55 
 
 States which would be incurred in carrying out H.R. 1465 as re- 
 ported, in fiscal year 1989, and each of the following five years. 
 However, under paragraph (d) of Clause VII, its provisions do not 
 apply when the Committee has received a timely report from the 
 Congressional Budget Office. 
 
 Committee Action and Vote 
 
 The Committee, in compliance with rule XI(2)(1)(2)(A) of the 
 Rules of the House of Representatives, reports favorably the bill, 
 H.R. 1465, as amended. The Committee ordered the bill reported by 
 voice vote. 
 
ADDITIONAL VIEWS OF HON. DOUGLAS APPLEGATE 
 
 The passage of a strong oil spill liability is vital if we hope to 
 protect our natural resources and guarantee the safe transporta- 
 tion of oil products. I believe that the premise of this legislation 
 will achieve these goals. I am pleased that this Committee has 
 worked diligently to produce a piece of legislation which will pro- 
 vide greater assurances that shipments of oil products are moved 
 on our waters in the safest methods available. The Committee's bill 
 addresses almost every possible concern, including the structure of 
 the vessels, the training of the personnel, the establishment of a 
 trust fund, and increase penalties for violators. While I strongly en- 
 dorse this bill, I do believe that without alterations in the tax code, 
 the penalties and intent of the legislation may be lost. 
 
 Currently, when an oil company is involved in the spilling of oil 
 into our nation's water, the structure of our tax code actually re- 
 wards them for the cost of clean-up and environmental restoration. 
 This is the case in any accident, be it the result of negligence or an 
 act of God. Oil Companies may incur costs for economic harm or 
 environmental damage, but, these costs are then written off as a 
 cost of doing business and their overall tax liability is reduced. As 
 a result, the American taxpayer must foot the bill for the loss of 
 natural resources and for the overall cost of clean-up. This is 
 simply an outrage. 
 
 I have introduced legislation that would prohibit oil companies 
 from including the cost of any clean-up into the cost of doing busi- 
 ness. The costs of a clean-up should be paid by the company and 
 the stockholders, not the American taxpayer. Perhaps if our tax 
 structure was revised, and the cost of clean-up no longer reduced 
 their tax liability companies would be more diligent in guarantee- 
 ing the safe transportation and storage of oil products. If the legis- 
 lation that I have introduced was enacted oil companies would be 
 put on notice that all fines, clean-up costs and economic compensa- 
 tion, for acts of negligence, would come from their profits and divi- 
 dends, not the American tax payer. I urge the Ways & Means Com- 
 mittee to seriously review this current policy of forcing the Ameri- 
 can tax payer to pay for the mistakes of large oil companies. Any 
 effective oil spill liability legislation must include revisions in our 
 tax structure. 
 
 Douglas Applegate. 
 
 (56) 
 
ADDITIONAL VIEWS OF HON. BENJAMIN L. CARDIN TO 
 
 H.R. 1465 
 
 I am a strong supporter of the oil spill liability, compensation, 
 prevention, and response legislation crafted by the Public Works 
 and Transportation Committee. The Committee's leadership de- 
 serves special commendation for taking a comprehensive approach 
 to the problems so sadly highlighted by the disastrous spill in 
 Alaska this spring. In one significant area, however, I believe the 
 Committee's action will interfere with the opportunity for efficient 
 and comprehensive responses to similar tragedies in the future. 
 
 Following discussions with a wide range of interested parties 
 prior to the Committee's mark-up, I was prepared to offer an 
 amendment, based on the Administration's proposal to Congress, 
 that would have eliminated the unnecessary preemption of states' 
 rights from the bill. This is a contentious issue that has not been 
 taken up by the Public Works and Transportation Committee in 
 years. Indeed, it has blocked passage of comprehensive federal oil 
 spill legislation for at least fourteen years. 
 
 My proposal would allow for application of state liability laws 
 and establishment of oil spill funds for purposes states deem neces- 
 sary. After watching the inept early response of the oil industry 
 and federal government to the disastrous spill in Alaska, how can 
 we now turn over all responsibilities for future spills to the same 
 industry and federal agencies while denying state officials the full 
 right to respond? The Clean Water Act does not preempt; Super- 
 fund does not preempt; and federal oil pollution laws — including 
 those governing the OCS, the Trans-Alaskan pipeline, and deepwa- 
 ter ports— do not preempt; what is the unique justification in this 
 case? 
 
 There is no overriding public need to deny states and local com- 
 munities, fishermen, beachfront property owners, and water de- 
 pendent businesses the right to provide for their own protection; 
 the right to establish higher standards; the right to account for 
 local priorities and needs. Connecticut, Florida, Maine, Maryland, 
 New Hampshire, New Jersey, New York, North Carolina, Texas, 
 Virginia, and Washington all have substantial funds in place. 
 There is no overriding public need to curtail their efforts. My lan- 
 guage has the support of virtually every coastal state government, 
 and environmental and fishing groups. In fact, on August 1, 1989, 
 in Chicago, the National Governors Association went even fur- 
 ther — opposing any preemption whatsoever, even that necessary to 
 implement international oil pollution protocols. 
 
 I am concerned that the legislation the committee has reported 
 to the House does not adequately address these crucial issues. I did 
 not offer my amendment on this issue, in order to permit the bill 
 to progress toward floor action. My action was based upon a com- 
 mitment of committee support for the opportunity to offer my 
 
 (57) 
 
58 
 
 amendments on the floor when the bill is considered by the Rules 
 Committee. I look forward to that opportunity on the floor and the 
 support of many of my committee colleagues. 
 
 Ben Cardin. 
 
Changes in Existing Law Made by the Bill, as Reported 
 
 In compliance with clause 3 of rule XIII of the Rules of the 
 House of Representatives, changes in existing law made by the bill, 
 as reported, are shown as follows (existing law proposed to be omit- 
 ted is enclosed in black brackets, new matter is printed in italic, 
 existing law in which no change is proposed is shown in roman): 
 
 TITLE 46, UNITED STATES CODE 
 
 ******* 
 
 Subtitle II — Vessels and Seamen 
 
 PART E— MERCHANT SEAMEN LICENSES, 
 CERTIFICATES, AND DOCUMENTS 
 
 CHAPTER 71— LICENSES AND CERTIFICATES OF REGISTRY 
 
 7107. Issuing and classifying licenses and certificates of registry. 
 
 ******* 
 
 7115. Consideration of alcohol abuse in issuing and renewing licenses and certifi- 
 cates of registry. 
 
 PART E— MERCHANT SEAMEN LICENSES, 
 CERTIFICATES, AND DOCUMENTS 
 
 CHAPTER 71— LICENSES AND CERTIFICATES OF REGISTRY 
 
 Sec. 
 
 7101. Issuing and classifying licenses and certificates of registry. 
 
 ******* 
 
 7115. Consideration of alcohol abuse in issuing and renewing licenses and certifi- 
 cates of registry. 
 
 § 7107. Duration of certificates of registry 
 
 [A certificate of registry issued under this part is not limited in 
 duration.] The Secretary shall determine the term of validity of a 
 certificate of registry. Such a certificate may be renewed under regu- 
 lations issued by the Secretary. However, the validity of a certifi- 
 cate issued to a medical doctor or professional nurse is conditioned 
 
 (59) 
 
60 
 
 on the continuous possession by the holder of a license as a medical 
 doctor or registered nurse, respectively, issued by a State. 
 
 § 7115. Consideration of alcohol abuse in issuing and renewing li- 
 censes and certificates of registry 
 
 (a) Limitation on Issuance of Licenses and Certificates. — The Sec- 
 retary may not issue or renew a license or certificate of registry 
 under this chapter for any individual who — 
 
 (1) the Secretary determines is a current or chronic abuser of 
 alcohol; or 
 
 (2) fails to make available to the Secretary the information re- 
 ferred to in subsection (b). 
 
 (b) Driving Record Information. — The Secretary shall require 
 each individual applying for issuance or renewal of a license or cer- 
 tificate of registry under this chapter to make available to the Secre- 
 tary, in accordance with section 206(b)(4) of the National Driver 
 Register Act of 1982 (23 U.S.C. 401 note), all information contained 
 in the National Driver Register regarding the motor vehicle driving 
 record of such individual. 
 
 (c) Investigations. — Upon receiving reliable information that an 
 individual applying for issuance or renewal of a license or certifi- 
 cate of registry under this chapter has been found guilty of alcohol- 
 related infraction resulting in suspension or revocation of a motor 
 vehicle operator license issued to the individual, the Secretary may 
 conduct such investigation as are necessary to determine if the indi- 
 vidual is a current or chronic abuser of alcohol. 
 
 CHAPTER 73— MERCHANT MARINERS' DOCUMENTS 
 
 § 7302. Issuing merchant mariners' documents and continuous 
 discharge books 
 
 (a) * * * 
 
 ******* 
 
 (c) Limitation on Issuance of Documents. — The Secretary may 
 not issue or renew a merchant mariner's document under this chap- 
 ter for any individual who — 
 
 (1) the Secretary determines is a current or chronic abuser of 
 alcohol; or 
 
 (2) fails to make available to the Secretaary the information 
 referred to in subsection (d). 
 
 (d) Driving Record Information. — The Secretary may require 
 each individual applying for issuance or renewal of a merchant 
 mariner's document under this chapter to make available to the 
 Secretary, in accordance with section 206(b)(4) of the National 
 Driver Register Act of 1982 (23 U.S.C. 401 note), all information con- 
 tained in the National Driver Register regarding the motor vehicle 
 driving record of such individual. 
 
 (e) Investigations. — Upon receiving reliable information that an 
 individual applying for issuance or renewal of a merchant mari- 
 ner's document under this chapter has been' found guilty of an alco- 
 
61 
 
 hol-related infraction resulting in suspension or revocation of a 
 motor vehicle operator license issued to the individual, the Secretary 
 may conduct such investigations are necessary to determine if the 
 individual is a current or chronic abuser of alcohol. 
 
 (f) Period of Validity. — The Secretary shall determine the term 
 of validity of a merchant mariner's document. Such documents may 
 be renewed under regulation issued by the Secretary. 
 
 CHAPTER 77— SUSPENSION AND REVOCATION 
 
 §§ 7703. Bases for suspension or revocation 
 
 (a) A license, certificate of registry, or merchant mariner's docu- 
 ment issued by the Secretary may be suspended or revoked if, 
 when acting under the authority of that license, certificate, or doc- 
 ument the holder — 
 
 (1) has violated or failed to comply with this subtitle, a regu- 
 lation prescribed under this subtitle, or any other law or regu- 
 lation intended to promote marine safety or to protect naviga- 
 ble waters. 
 
 (2) has committed an act or incompetence, misconduct, or 
 negligence. 
 
 (b) Suspensions for Alcohol Abuse. — 
 
 (1) In general. — The Secretary may suspend or revoke a li- 
 cense, certificate of registry, or merchant mariner's document 
 issued by the Secretary to an individual if— 
 
 (A) the Secretary determines the individual is a current 
 or chronic abuser of alcohol; or 
 
 (B) the individual fails to make available to the Secre- 
 tary the information referred to in paragraph (3). 
 
 Any determination of the Secretary to suspend or revoke the li- 
 cense, certificate of registry, or merchant mariner's document of 
 an individual under this paragraph shall be based on the sever- 
 ity of abuse of alcohol by the individual and the length of time 
 necessary to control that abuse. 
 
 (2) Investigations. — The Secretary may conduct such investi- 
 gations as are necessary to determine if an individual who 
 holds a license, certificate of registry, or merchant mariner's 
 document issued by the Secretary is a current or chronic abuser 
 of alcohol if the Secretary receives reliable information — 
 
 (A) regarding any alcohol-related misconduct of the indi- 
 vidual; or 
 
 (B) pursuant to paragraph (3) that the individual has 
 been found guilty of an alcohol-related infraction resulting 
 in suspension or revocation of a motor vehicle operator li- 
 cense issued to the individual. 
 
 (3) Driving record information. — The Secretary may re- 
 quest an individual who holds a license, certificate of registry, 
 or merchant mariner's document issued by the Secretary to 
 make available to the Secretary, in accordance with section 
 206(b)(4) of the National Driver Register Act of 1982 (23 U.S.C. 
 401 note), all information contained in the National Driver 
 
62 
 
 Register regarding the motor vehicle driving record of such in- 
 dividual. 
 
 (4) Limitation on suspension terminations. — The Secretary 
 may not terminate a suspension of a license, certificate of regis- 
 try, or merchant mariner's document of an individual under 
 paragraph (1)(A) until the individual provides sufficient proof 
 that the individual is no longer a current or chronic abuser of 
 alcohol. 
 
 PART F— MANNING OF VESSELS 
 
 CHAPTER 81— GENERAL 
 
 ******* 
 
 § 8101. Complement of inspected vessels 
 
 (a) * * * 
 
 ******* 
 
 (i) Relief of Master. — If the chief mate or equivalent and the 
 next senior crewmember on board a vessel determine that reasonable 
 cause exists to believe that the master or individual in command is 
 intoxicated as a result of the use of dangerous drugs (as defined in 
 section 7704) or alcohol and is therefore incapable of commanding 
 the vessel, the chief mate shall temporarily relieve the master and 
 temporarily assume command of the vessel and shall immediately 
 enter the details in the vessel log and report such details to the Sec- 
 retary by the most expeditious means available. The chief mate 
 shall also report the circumstances in writing to the Secretary 
 within 12 hours after the vessel arrives at its destination. 
 
 The National Driver Register Act of 1982 
 
 TITLE II— NATIONAL DRIVER REGISTER 
 
 ******* 
 
 ACCESSIBILITY OF REGISTER INFORMATION 
 
 Sec. 206. (a)(1) * * * 
 
 (b)(1) The Chairman of the National Transportation Safety Board 
 and the Administrator of the Federal Highway Administration, for 
 purposes of requesting information regarding any individual who is 
 the subject of any accident investigation conducted by the Board or 
 Bureau of Motor Carrier Safety, may request the chief driver li- 
 censing official of a State to obtain information under subsection 
 (a) of this section regarding such individual. The Chairman and Ad- 
 ministrator may receive any such information. 
 
 (2) Any individual who is employed as a driver of a motor vehicle 
 or who seeks employment as a driver of a motor vehicle may re- 
 quest the chief driver licensing official of the State in which the 
 individual is employed or seeks employment to transmit informa- 
 
63 
 
 tion under subsection (a) of this section to his employer or prospec- 
 tive employer. An employer or prospective employer may receive 
 such information regarding any such individual, and shall make 
 that information available to the affected individual. There shall 
 be no access to information in the Register under this paragraph if 
 such information was entered in the Register more than three 
 years before the date of such request. 
 
 (3) Any individual who has applied for or received an airman's 
 certificate may request the chief driver licensing official of a State 
 to transmit information regarding the individual under subsection 
 (a) of this section to the Administrator of the Federal Aviation Ad- 
 ministration. The Administrator of the Federal Aviation Adminis- 
 tration may receive such information and shall make such infor- 
 mation available to the individual for review and written comment. 
 The Administrator shall not otherwise divulge or use such informa- 
 tion, except to verify information required to be reported to the Ad- 
 ministrator by an airman applying for an airman medical certifi- 
 cate and to evaluate whether the airman meets the minimum 
 standards as prescribed by the Administrator to be issued an 
 airman medical certificate. There shall be no access to information 
 in the Register under this paragraph if such information was en- 
 tered in the Register more than 3 years before the date of such re- 
 quest, unless such information relates to revocations or suspensions 
 which are still in effect on the date of the request. Information sub- 
 mitted to the Register by States under the Act of July 14, 1960 (74 
 Stat. 526), or under this Act shall be subject to access for the pur- 
 pose of this paragraph during the transition to the Register estab- 
 lished under section 203(a) of this Act. 
 
 [(5)] (4) Any individual who is employed by a railroad as an op- 
 erator of a locomotive, or who seeks employment with a railroad as 
 an operator of a locomotive, may request the chief driver licensing 
 official of a State to transmit information regarding the individual 
 under subsection (a) of this section to his or her employer or pro- 
 spective employer, or to the Secretary. There shall be no access to 
 information in the Register under this paragraph which was en- 
 tered in the Register more than three years before the date of such 
 request, unless such information relates to revocations or suspen- 
 sions that are still in effect on the date of the request. Information 
 submitted to the Register by the States under Public Law 86-660 
 (74 Stat. 526) or under this title shall be subject to access for the 
 purpose of this paragraph during the transition described under 
 section 203(c) of this title. 
 
 (5) Seaman Certificates. — Any individual who has applied for 
 or received a license or certificate of registry in accordance with 
 section 7101 of title 46, United States Code, or a merchant mari- 
 ner's document in accordance with section 7302 of title 46, United 
 States Code, or has applied for a renewal of such license, certificate 
 of registry, or document, may request the chief driver licensing of- 
 ficial of a State to transmit information regarding the individual 
 under subsection (a) to the Secretary. The Secretary may receive 
 such information and shall, prior to using such information in any 
 adverse action regarding the individual's license, certificate of reg- 
 istry, or document, make such information available to the individ- 
 ual for review and written comment. The Secretary may not other- 
 
64 
 
 wise divulge or use such information, except in accordance with 
 section 7115, 7302, or 7703 of title 46, United States Code. There 
 shall be no access to information in the Register under this para- 
 graph if such information was entered in the Register more than 5 
 years before the date of such request, unless such information re- 
 lates to revocations or suspensions which are still in effect on the 
 date of the request. Information submitted to the Register by 
 States under the Act of July 14, 1960 (74 Stat. 526), or under this 
 Act shall be subject to access for the purpose of this paragraph 
 during the transition to the Register established under section 
 203(a) of this Act. 
 
 [(4)] (6) Any individual, in order (A) to determine whether the 
 Register is providing any data regarding him or the accuracy of 
 any such data; or (B) to obtain a certified copy of data provided 
 through the Register regarding him, may request the chief driver 
 licensing official of a State to obtain information regarding him 
 under subsection (a) of this section. 
 
 [(5)3 (7) Any request made under this subsection shall be made 
 in such form, and according to such procedures, as the Secretary 
 shall establish by regulation. 
 
 CRIMINAL PENALTIES 
 
 Sec. 208. (a) Any person, other than an individual described in 
 section 206(b) [(5)3 ($ of this title, who receives under section 206 of 
 this title information specified in section 205(b) (1) or (3) of this title 
 (the disclosure of which is not authorized by section 206 of this 
 title), and who, knowing that disclosure of such information is not 
 authorized, willfully discloses such information, shall be fined not 
 more than $10,000 or imprisoned for not more than one year, or 
 both. 
 
 (b) Any person who knowingly and willfully requests or under 
 false pretenses obtains information specified in section 205(b) (1) or 
 (3) of this title from any person who receives such information 
 under section 206 of this title shall be fined not more than $10,000 
 or imprisoned for not more than one year, or both. 
 
 Section 204 of the Trans-Alaska Pipeline Authorization Act 
 
 liability 
 
 Sec. 204. (a) * * * 
 
 (b) If any area in the State of Alaska within or without the right- 
 of-way or permit area granted under this title is polluted by any 
 activities related to the trans-Alaska oil pipeline conducted by or on 
 behalf of the holder to whom such right-of-way or permit was 
 granted, and such pollution damages or threatens to damage ac- 
 quatic life, wildlife, or public or private property, the control and 
 total removal of the pollutant shall be at the expense of such 
 holder, including any administrative and other costs incurred by 
 the Secretary or any other Federal officer or agency. Upon failure 
 
65 
 
 of such holder to adequately control and remove such polutant, the 
 Secretary, in cooperation with other Federal, State, or local agen- 
 cies, or in cooperation with such holder, or both, shall have the 
 right to accomplish the control and removal at the expense of such 
 holder. This subsection shall not apply to removal costs covered by 
 the Oil Pollution Prevention, Response, Liability, and Compensation 
 Act of 1989. 
 
 [(c)(1) Notwithstanding the provisions of any other law, if oil 
 that has been transported through the trans-Alaska pipeline is 
 loaded on a vessel at the terminal facilities of the pipeline, the 
 owner and operator of the vessel (jointly and severally) and the 
 Trans-Alaska Pipeline Liability Fund established by this subsec- 
 tion, shall be strictly liable without regard to fault in accordance 
 with the provisions of this subsection for all damages, including 
 clean-up costs, sustained by any person or entity, public or private, 
 including residents of Canada, as the result of discharges of oil 
 from such vessel. 
 
 [(2) Strict liability shall not be imposed under this subsection if 
 the owner or operator of the vessel, or the Fund, can prove that the 
 damages were caused by an act of war or by the negligence of the 
 United States or other governmental agency. Strict liabilty shall 
 not be imposed under this subsection with respect to the claim of a 
 damaged party if the owner or operator of the vessel, or the Fund, 
 can prove that the damage was caused by the negligence of such 
 party. 
 
 [(3) Strict liability for all claims arising out of any one incident 
 shall not exceed $100,000,000. The owner and operator of the vessel 
 shall be jointly and severally liable for the first $14,000,000 of such 
 claims that are allowed. Financial responsibility for $14,000,000 
 shall be demonstrated in accordance with the provisions of section 
 311(p) of the Federal Water Pollution Control Act, as amended (33 
 U.S.C. 1321(p)) before the oil is loaded. The Fund shall be liable for 
 the balance of the claims that are allowed up to $100,000,000. If the 
 total claims allowed exceed $100,000,000 they shall be reduced pro- 
 portionately. The unpaid portion of any claim may be asserted and 
 adjudicated under other applicable Federal or state law. 
 
 [(4) The Trans-Alaska Pipeline Liability Fund is hereby estab- 
 lished as a non-profit corporate entity that may sue and be sued in 
 its own name. The Fund shall be administered by the holders of 
 the trans-Alaska pipeline right-of-way under regulations prescribed 
 by the Secretary. The Fund shall be subject to an annual audit by 
 the Comptroller General, and a copy of the audit shall be submit- 
 ted to the Congress. 
 
 [(5) The operator of the pipeline shall collect from the owner of 
 the oil at the time it is loaded on the vessel a fee of five cents per 
 barrel. The collection shall cease when $100,000,000 has been accu- 
 mulated in the Fund, and it shall be resumed when the accumula- 
 tion in the Fund falls below $100,000,000. 
 
 [(6) The collections under paragraph (5) shall be delivered to the 
 Fund. Costs of administration shall be paid from the money paid to 
 the Fund, and all sums not needed for administration and the sat- 
 isfaction of claims shall be invested prudently in income-producing 
 securities approved by the Secretary. Income from such securities 
 shall be added to the principal of the Fund. 
 
66 
 
 [(7) The provisions of this subsection shall apply only to vessels 
 engaged in transportation between the terminal facilities of the 
 pipeline and ports under the jurisdiction of the United States. 
 Strict liability under this subsection shall cease when the oil has 
 first been brought ashore at a port under the jurisdiction of the 
 United States. 
 
 [(8) In any case where liability without regard to fault is im- 
 posed pursuant to this subsection and the damages involved were 
 caused by the unseaworthiness of the vessel or by negligence, the 
 owner and operator of the vessel, and the Fund, as the case may 
 be, shall be subrogated under applicable State and Federal laws to 
 the rights under said laws of any person entitled to recovery here- 
 under. If any subrogee brings an action based on unseaworthiness 
 of the vessel or negligence of its owner or operator, it may recover 
 from any affilate of the owner or operator, if the respective owner 
 or operator fails to satisfy any claim by the subrogee allowed under 
 this paragraph. 
 
 [(9) This subsection shall not be interpreted to preempt the field 
 of strict liability or to preclude any State from imposing additional 
 requirements. 
 
 [(10) If the Fund is unable to satisfy a claim asserted and finally 
 determined under this subsection, the Fund may borrow the money 
 needed to satisfy the claim from any commercial credit source, at 
 the lowest available rate of interest, subject to approval of the Sec- 
 retary. 
 
 [(11) For purposes of this subsection only, the term "affiliate" 
 includes — 
 
 [(A) Any person owned or effectively controlled by the 
 vessel owner or operator; or 
 
 [(B) Any person that effectively controls or has the power 
 effectively to control the vessel owner or operator by — 
 [(i) stock interest, or 
 
 [(h) representation on a board of directors or similar 
 body, or 
 
 [(iii) contract or other agreement with other stockhold- 
 ers, or 
 
 [(iv) otherwise; or 
 [(C) Any person which is under common ownership or con- 
 trol with the vessel owner or operator. 
 [(12) The term "person" means an individual, a corporation, a 
 partnership, an association, a joint-stock company, a business trust, 
 or an unincorporated organization.] 
 
 Section 17 of the Intervention on the High Seas Act 
 
 [Sec. 17. The revolving fund established under section 311(k) of 
 the Federal Water Pollution Control Act shall be available to the 
 Secretary for Federal actions and activities under section 5 of this 
 Act.] 
 SEC. 17. AVAILABILITY OF OIL SPILL LIABILITY TRUST FUND. 
 
 The Oil Spill Liability Trust Fund shall be available to the Secre- 
 tary for actions taken under sections 5 and 7 of this Act. 
 
67 
 
 Section 311 of the Federal Water Pollution Control Act 
 oil and hazardous substance liability 
 
 Sec. 311.(a) * * * 
 
 (b)(1) * * * 
 
 (5) Any person in charge of a vessel or an onshore facility or an 
 offshore facility shall, as soon as he has knowledge of any dis- 
 charge of oil or a hazardous substance from such vessel or facility 
 in violation of paragraph (3) of this subsection, immediately notify 
 the appropriate agency of the United States Government of such 
 discharge. The Federal agency shall immediately notify the appro- 
 priate State agency of any State which is, or may reasonably be ex- 
 pected to be, affected by the discharge of oil or a hazardous sub- 
 stance. Any such person (A) in charge of a vessel from which oil or 
 a hazardous substance is discharged in violation of paragraph (3)(i) 
 of this subsection, or (B) in charge of a vessel for which oil or a 
 hazardous substance is discharged in violation of paragraph (3)(ii) 
 of this subsection and who is otherwise subject to the jurisdiction of 
 the United States at the time of the discharge, or (C) in charge of 
 an onshore facility or an offshore facility, who fails to notify imme- 
 diately such agency of such discharge shall, upon conviction, be 
 [fined not more than $10,000, or imprisoned for not more than one 
 year, or both] fined in accordance with the applicable provisions of 
 title 18 of the United States Code, or imprisoned for not more than 
 3 years (or no more than 5 years in the case of a second or subse- 
 quent conviction, or both. Notification received pursuant to this 
 paragraph or information obtained by the exploitation of such noti- 
 fication shall not be used against any such person in any criminal 
 case, except a prosecution for perjury or for giving a false state- 
 ment. 
 
 (6)(A) Any owner, operator, or person in charge of any onshore 
 facility or offshore facility from which oil or a hazardous substance 
 is discharged in violation of paragraph (3) of this subsection shall 
 be assessed a civil penalty by the Secretary of the department in 
 which the Coast Guard is operating of not more than [$5,000 for 
 each offense] $25,000 for each day of such offense. Any owner, op- 
 erator, or person in charge of any vessel from which oil or a haz- 
 ardous substance is discharged in violation of paragraph (3)(i) of 
 this subsection, and any owner, operator, or person in charge of a 
 vessel from which oil or a hazardous substance is discharged in vio- 
 lation of paragraph (3)(ii) who is otherwise subject to the jurisdic- 
 tion of the United States at the time of the discharge, shall be as- 
 sessed a civil penalty by the Secretary of the department in which 
 the Coast Guard is operating of not more than [$5,000 for each of- 
 fense] $25,000 for each day of such offense. No penalty shall be as- 
 sessed unless the owner or operator charged shall have been given 
 notice and opportunity for a hearings on such charge. Each viola- 
 tion is a separate offense. Any such civil penalty may be compro- 
 mised by such Secretary. In determining the amount of the penal- 
 ty, or the amount agreed upon in compromise, the appropriateness 
 of such penalty to the size of the business of the owner or operator 
 charged, the effect on the owner or operator's ability to continue in 
 
68 
 
 business, and the gravity of the violation, shall be considered by 
 such Secretary. The Secretary of the Treasury shall withhold at 
 the request of such Secretary the clearance required by section 
 4197 of the Revised Statutes of the United States, as amended (46 
 U.S.C. 91), of any vessel the owner or operator of which is subject 
 to the foregoing penalty. Clearance may be granted in such cases 
 upon the filing of a bond or other surety satisfactory to such Secre- 
 tary. 
 
 ******* 
 
 (0(1) * * * 
 
 (2) Within sixty days after the effective date of this section, the 
 President shall prepare and publish a National Contingency Plan 
 for removal of oil and hazardous substances, pursuant to this sub- 
 section. Such National Contingency Plan shall provide for efficient, 
 coordinated, and effective action to minimize damage from oil and 
 hazardous substance discharges, including containment, dispersal, 
 and removal of oil and hazardous substances, and shall include, but 
 not be limited to — 
 (A) * * * 
 
 ******* 
 
 (C) [establishment or designation of a strike force consist- 
 ing] designation, establishment, and maintenance of a strike 
 force consisting of at least 4 teams of personnel who shall be 
 trained, prepared, and available to provide necessary services 
 to carry out the Plan, including the establishment of major 
 ports, to be determined by the President, of emergency task 
 forces of trained personnel, adequate oil and hazardous sub- 
 stance pollution control equipment and material, and a de- 
 tailed oil and hazardous substance pollution prevention and re- 
 moval plan; 
 
 (D) a system of surveillance and notice designed to safeguard 
 against as well as insure earliest possible notice of discharges 
 of oil and hazardous substances and imminent threats of such 
 discharges to the appropriate State and Federal agencies; 
 
 ******* 
 
 (F) procedures and techniques to be employed in identifying, 
 containing, dispersing, and removing oil and hazardous sub- 
 stances as well as research and development into methods and 
 techniques to improve existing technology; 
 
 ******* 
 
 (H) a system whereby the State or States affected by a dis- 
 charge of oil or hazardous substance may act where necessary 
 to remove such discharge and such State or States may be [be 
 reimbursed from the fund established under subsection (k) of 
 this section for the reasonable costs incurred in such remov- 
 al.] reimbursed, in the case of any discharges of oil from a 
 vessel or facility, for the reasonable costs incurred for such re- 
 moval, from the Oil Spill Liability Trust Fund. 
 
 ******* 
 
 (d) Whenever a marine disaster in or upon the navigable waters 
 of the United States has created a substantial threat of a pollution 
 
69 
 
 hazard to the public health or welfare of the United States, includ- 
 ing, but not limited to, fish, shellfish, and wildlife and the public 
 and private shorelines and beaches of the United States, because of 
 a discharge, or an imminent discharge, of large quantities of oil, or 
 of a hazardous substance from a vessel the United States may (A) 
 coordinate and direct all public and private efforts directed at the 
 removal or elimination of such threat; and (B) summarily remove, 
 and, if necessary, destroy such vessel by whatever means are avail- 
 able without regard to any provisions of law governing the employ- 
 ment of personnel or the expenditure of appropriated funds. [Any 
 expense incurred under this subsection or under the Intervention 
 on the High Seas Act (or the convention defined in section 2(3) 
 thereof) shall be a cost incurred by the United States Government 
 for the purposes of subsection (f) in the removal of oil or hazardous 
 substance. 
 
 [(e) In addition to any other action taken by a State or local gov- 
 ernment, when the President determines there is an imminent and 
 substantial threat to the public health or welfare of the United 
 States, including, but not limited to, fish, shellfish, and wildlife and 
 public and private property, shorelines, and beaches within the 
 United States, because of an actual or threatened discharge of oil 
 or hazardous substance into or upon the navigable waters of the 
 United States from an onshore or offshore facility, the President 
 may require the United States attorney of the district in which the 
 threat occurs to secure such relief as may be necessary to abate 
 such threat, and the district courts of the United States shall have 
 jurisdiction to grant such relief as the public interest and the equi- 
 ties of the case may require.] 
 
 (e) Abatement Actions. — 
 
 (1) President's authority. — In addition to any action taken 
 by a State or local government, when the President determines 
 that there may be an imminent and substantial threat to the 
 public health or welfare of the United States, including fish, 
 shellfish, and wildlife and public and private property, shore- 
 lines, and beaches under the jurisdiction or control of the 
 United States, because of an actual or threatened discharge of 
 oil or a hazardous substance from a vessel or facility in viola- 
 tion of subsection (b) of this section, the President may — 
 
 (A) require the Attorney General to secure such relief as 
 may be necessary to abate such threat; or 
 
 (B) after notice to th° affected State, take such other 
 action under this section, including issuing such adminis- 
 trative orders, as may be necessary to protect the public 
 health and welfare. 
 
 (2) Enforcement of orders. — If any person fails without 
 sufficient cause to comply with an order under paragraph (1)(B), 
 the President may request the Attorney General to bring an 
 action in the appropriate district court of the United States to 
 enforce such an order, to assess civil penalties of not more than 
 $25,000 a day for each violation, and to assess 3 times the re- 
 moval costs or damages incurred by the Oil Spill Liability 
 Trust Fund as a result of the failure to comply. 
 
 (3) District court jurisdiction. — The district courts of the 
 United States shall have jurisdiction to grant such relief under 
 
70 
 
 this subsection as the public interest and the equities of the case 
 may require. 
 
 ******* 
 
 [(i)(l) In any case where an owner or operator of a vessel or an 
 onshore facility or an offshore facility from which oil or a hazard- 
 ous substance is discharged in violation of subsection (b)(3) of this 
 section acts to remove such oil or substance in accordance with reg- 
 ulations promulgated pursuant to this section, such owner or oper- 
 ator shall be entitled to recover the reasonable costs incurred in 
 such removal upon establishing, in a suit which may be brought 
 against the United States Government in the United States Claims 
 Court, that such discharge was caused solely by (A) an act of God, 
 (B) an act of war, (C) negligence on the part of the United States 
 Government, or (D) an act or omission of a third party without 
 regard to whether such act or omission was or was not negligent, 
 or of any combination of the foregoing clauses. 
 
 [(2) The provisions of this subsection shall not apply in any case 
 where liability is established pursuant to the Outer Continental 
 Shelf Lands Act, or the Deepwater Porter Act of 1974. 
 
 [(3) Any amount paid in accordance with a judgment of the 
 United States Claims Court pursuant to this section shall be paid 
 from the funds established pursuant to subsection (k).] 
 
 ******* 
 
 [(k)(l) There is hereby authorized to be appropriated to a revolv- 
 ing fund to be established in the Treasury such sums as may be 
 necessary to maintain such fund at a level of $35,000,000 to carry 
 out the provisions of subsection (c), (d), (i), and (1) of this section. 
 Any other funds received by the United States under this section 
 shall also be deposited in said fund for such purposes. All sums ap- 
 propriated to or deposited in, said fund shall remain available until 
 expended. 
 
 [(2) The Secretary of Transportation shall notify the Congress 
 whenever the unobligated balance of the fund is less than 
 $12,000,000, and shall include in such notification a recommenda- 
 tion for a supplemental appropriation relating to the sums that are 
 needed to maintain the fund at the level provided in paragraph 
 
 d)J 
 
 (1) The President is authorized to delegate the administration of 
 this section to the heads of those Federal departments, agencies, 
 and instrumentalities which he determines to be appropriate. 
 [Any moneys in the fund established by subsection (k) of this sec- 
 tion shall be available to such Federal departments, agencies, and 
 instrumentalists to carry out the provisions of subsections (c) and 
 (i) of this section.] Each such department, agency, and instrumen- 
 tality, in order to avoid duplication of effort, shall, whenever appro- 
 priate, utilize the personnel, services, and facilities of other Federal 
 departments, agencies, and instrumentalities. 
 
 ******* 
 
 [(p)(l) Any vessel over three hundred gross tons, including any 
 barge of equivalent size, but not including any barge that is not 
 self-propelled and that does not carry oil or hazardous substances 
 as cargo or fuel, using any port or place in the United States or the 
 
71 
 
 navigable waters of the United States for any purpose shall estab- 
 lish and maintain under regulations to be prescribed from time to 
 time by the President, evidence of financial responsibility of, in the 
 case of an inland oil barge $125 per gross ton of such barge, or 
 $125,000, whichever is greater, and in the case of any other vessel, 
 $150 per gross ton of such vessel (or, for a vessel carrying oil or 
 hazardous substances as cargo, $250,000), whichever is greater, to 
 meet the liability to the United States which such vessel could be 
 subjected under this section. In cases where an owner or operator 
 owns, operates, or charters more than one such vessel, financial re- 
 sponsibility need only be established to meet the maximum liabil- 
 ity to which the largest of such vessels could be subjected. Finan- 
 cial responsibility may be established by any one of, or a combina- 
 tion of, the following methods acceptable to the President: (A) evi- 
 dence of insurance, (B) surety bonds, (C) qualification as a self-in- 
 surer, or (D) other evidence of financial responsibility. Any bond 
 filed shall be issued by a bonding company authorized to do busi- 
 ness in the United States. 
 
 [(2) The provisions of paragraph (1) of this subsection shall be 
 effective April 3, 1971, with respect to oil and one year after the 
 date of enactment of this section with respect to hazardous sub- 
 stances. The President shall delegate the responsibility to carry out 
 the provisions of this subsection to the appropriate agency within 
 sixty days after the date of enactment of this section. Regulations 
 necessary to implement this subsection shall be issued within six 
 months after the date of enactment of this section. 
 
 [(3) Any claim for costs incurred by such vessel may be brought 
 directly against the insurer or any other person providing evidence 
 of financial responsibility as required under this subsection. In the 
 case of any action pursuant to this subsection such insurer or other 
 person shall be entitled to invoke all rights and defenses which 
 would have been available to the owner or operator if an action 
 had been brought against him by the claimant and which would 
 have been available to him if an action had been brought against 
 him by the owner or operator. 
 
 [(4) Any owner or operator of a vessel subject to this subsection, 
 who fails to comply with the provisions of this subsection or any 
 regulation issued thereunder, shall be subject to a fine of not more 
 than $10,000. 
 
 [(5) The Secretary of the Treasury may refuse the clearance re- 
 quired by section 4197 of the Revised Statutes of the United States, 
 as amended (4 U.S.C. 91), to any vessel subject to this subsection, 
 which does not have evidence furnished by the President that the 
 financial responsibility provisions (1) of this subsection have been 
 complied with. 
 
 [(6) The Secretary of the Department in which the Coast Guard 
 is operated may (A) deny entry to any port or place in the United 
 States or the navigable waters of the United States, to, and (B) 
 detain at the port or place in the United States from which it is 
 about to depart for any other port or place in the United States, 
 any vessel subject to this subsection, which upon request, does not 
 produce evidence furnished by the President that the financial re- 
 
72 
 
 sponsibility provisions of paragraph (1) of this subsection have been 
 complied with.] 
 
 ******* 
 
 (s) Availability of Oil Spill Liability Trust Fund. — The Oil 
 Spill Liability Trust Fund shall be available to carry out subsection 
 (c), (d), (i), and, (I). Any amounts received by the United States under 
 this section shall be deposited in the Oil Spill Liability Trust Fund. 
 
 Deepwater Port Act of 1974 
 
 ******* 
 
 LICENSE FOR THE OWNERSHIP, CONSTRUCTION, AND OPERATION OF A 
 
 DEEPWATER PORT 
 
 Sec. 4. (a) * * * 
 
 ******* 
 
 (c) The Secretary may issue a license in accordance with the pro- 
 visions of this Act if— 
 
 (1) he determines that the applicant is financially responsi- 
 ble and will meet the requirements of [section 18(1) of this 
 Act;] section 107 of the Oil Pollution Prevention, Response, Li- 
 ability, and Compensation Act of 1989; 
 
 LIABILITY 
 
 Sec 18. (a) * * * 
 
 [(b) Any individual in charge of a vessel or a deepwater port 
 shall notify the Secretary as soon as he has knowledge of a dis- 
 charge of oil. Any such individual who fails to notify the Secretary 
 immediately of such discharge shall, upon conviction, be fined not 
 more than $10,000 or imprisoned for not more than 1 year, or both. 
 Notification received pursuant to this subsection, or information 
 obtained by the use of such notification, shall not be used against 
 any such individual in any criminal case, except a prosecution for 
 perjury or for giving a false statement.] 
 
 [(c)] (b)(1) Whenever any oil is discharged from a vessel within 
 any safety zone, from a vessel which has received oil from another 
 vessel at a deepwater port, or from a deepwater port, the Secretary 
 shall remove or arrange for the removal of such oil as soon as pos- 
 sible, unless he determines such removal will be done properly and 
 expeditiously by the licensee of the deepwater port or the owner or 
 operator of the vessel from which the discharge occurs. 
 
 (2) Removal of oil and actions to minimize damage from oil dis- 
 charges shall, to the greatest extent possible, be in accordance with 
 the National Contingency Plan for removal of oil and hazardous 
 substances established pursuant to section 311(c)(2) of the Federal 
 Water Pollution Control Act, as amended. 
 
 (3) Whenever the Secretary acts to remove a discharge of oil pur- 
 suant to this subection, he is authorized to draw upon money avail- 
 able in the [Deepwater Port Liability Fund established pursuant 
 to subsection (f) of this section] Oil Spill Liability Trust Fund. 
 
73 
 
 Such money shall be used to pay promptly for all cleanup costs in- 
 curred by the Secretary in removing or in minimizing damage 
 caused by such oil discharge. 
 
 [(d) Notwithstanding any other provision of law, except as pro- 
 vided in subsection (g) of this section, the owner and operator of a 
 vessel shall be jointly and severally liable, without regard to fault, 
 for cleanup costs and for damages that result from a discharge of 
 oil from such vessel within any safety zone, or from a vessel which 
 has received oil from another vessel at a deepwater port while lo- 
 cated in the safety zone, except when such vessel is moored at a 
 deepwater port. Such liability shall not exceed $150 per gross ton 
 or $20,000,000, whichever is lesser, except that if it can be shown 
 that such discharge was the result of gross negligence or willful 
 misconduct within the privity and knowledge of the owner or oper- 
 ator, such owner and operator shall be jointly and severally liable 
 for the full amount of all cleanup costs and damages. 
 
 [(e) Notwithstanding any other provision of law, except as pro- 
 vided in subsection (g) of this section, the licensee of a deepwater 
 port shall be liable, without regard to fault, for cleanup costs and 
 damages that result from a discharge of oil from such deepwater 
 port or from a vessel moored at such deepwater port. Such liability 
 shall not exceed $50,000,000 except that if it can be shown that 
 such damage was the result of gross negligence or willful miscon- 
 duct within the privity and knowledge of the licensee, such licensee 
 shall be liable for the full amount of all cleanup costs and dam- 
 ages. 
 
 [(f)(1) There is established a Deepwater Port Liability Fund 
 (hereinafter referred to as the "Fund") as a nonprofit corporate 
 entity which may sue or be sued in its own name. The Fund shall 
 be administered by the Secretary. 
 
 [(2) The Fund shall be liable, without regard to fault, for all 
 cleanup costs and all damages in excess of those actually compen- 
 sated pursuant to subsections (d) and (e) of this section. 
 
 [(3) Each licensee shall collect from the owner of any oil loaded 
 or unloaded at the deepwater port operated by such licensee, at the 
 time of loading or unloading, a fee of 2 cents per barrel, except 
 that (A) bunker or fuel oil for the use of any vessel, and (B) oil 
 which was transported through the trans-Alaska pipeline, shall not 
 be subject to such collection. Such collections shall be delivered to 
 the Fund at such times and in such manner as shall be prescribed 
 by the Secretary. These collections shall cease after the date of en- 
 actment of the Deepwater Port Act Amendments of 1984, unless 
 there are adjudicated claims against the Fund to be satisfied. The 
 Secretary may order the collection of the fee to be resumed when 
 the unobligated balance of the Fund as reduced by the unliquida- 
 ted debts to the United States Treasury is less than $4,000,000. Any 
 collection of fees ordered by the Secretary under the preceding sen- 
 tence shall cease whenever the unobligated balance of the Fund as 
 reduced by the unliquidated debts to the United States Treasury 
 exceeds $4,000,000. The Fund may borrow from the United States 
 Treasury at an interest rate to be determined by the Secretary of 
 the Treasury amounts sufficient to maintain the available balance 
 in the Fund at $4,000,000, but only to such extent and in such 
 amounts as are provided in advance in appropriation Acts. Such 
 
74 
 
 amounts shall remain available until expended. Whenever the 
 money in the Fund is less than the amount the Secretary deter- 
 mines is needed to draw upon under subsection (c)(3) of this section 
 or the claims for cleanup costs and damages for which it is liable 
 under this section, the Fund shall borrow the balance required to 
 pay such claims from the United States Treasury at an interest 
 rate determined by the Secretary of the Treasury. Costs of adminis- 
 tration shall be paid from the Fund only after appropriation in an 
 appropriation bill. All sums not needed to draw upon under subsec- 
 tion (c)(3) of this section or for administration and the satisfaction 
 of claims shall be prudently invested in income-producing securi- 
 ties issued by the United States and approved by the Secretary of 
 the Treasury. Income from such securities shall be applied to the 
 principal of the Fund. 
 
 [(g) Liability shall not be imposed under subsection (d) or (e) of 
 this section if the owner or operator of a vessel or the licensee can 
 show that the discharge was caused solely by (1) an act of war, or 
 (2) negligence on the part of the Federal Government in establish- 
 ing and maintaining aids to navigation, in addition, liability with 
 respect to damages claimed by a damaged party shall not be im- 
 posed under subsection (d), (e), or (f) of this section if the owner or 
 operator of a vessel, the licensee, or the Fund can show that such 
 damage was caused solely by the negligence of such party. 
 
 [(h)(1) In any case where, liability is imposed pursuant to subsec- 
 tion (d) of this section, if the discharge was the result of the negli- 
 gence of the licensee, the owner or operator of a vessel held liable 
 shall be subrogated to the rights of any person entitled to recovery 
 against such licensee. 
 
 [(2) In any case where liability is imposed pursuant to subsec- 
 tion (e) of this section, if the discharge was the result of the un- 
 seaworthiness of a vessel or the negligence of the owner or opera- 
 tor of such vessel, the licensee shall be subrogated to the rights of 
 any person entitled to recovery against such owner or operator. In 
 that event, the owner and operator of the vessel are jointly and 
 severally liable for cleanup costs and damages resulting from that 
 discharge in the same manner and to the same extent as under 
 subsection (d) of this section. 
 
 [(3) Payment of compensation for any damages pursuant to sub- 
 section (f)(2) of this section shall be subject to the Fund acquiring 
 by subrogation all rights of the claimant to recover for such dam- 
 ages from any other person. When the Fund under this subsection 
 is subrogated to the right of any person entitled to recovery against 
 the owner or operator of a vessel, that owner and operator are 
 jointly and severally liable for cleanup costs and damages resulting 
 from that discharge in the same manner and to the same extent as 
 under subsection (d) of this section. 
 
 [(4) The liabilities established in this section shall in no way 
 affect or limit any rights which the licensee, the owner, or operator 
 of a vessel, or the Fund may have against any third party whose 
 act may in any way have caused or contributed to a discharge of 
 oil. 
 
 [(5) In any case where the owner or operator of a vessel or the 
 licensee of a deepwater port from which oil is discharged acts to 
 remove such oil in accordance with subsection (c)(1) of this section, 
 
75 
 
 such owner or operator or such licensee shall be entitled to recover 
 from the Fund the reasonable cleanup cost incurred in such remov- 
 al if he can show that such discharge was caused solely by (A) an 
 act of war or (B) negligence on the part of the Federal Government 
 in establishing and maintaining aids to navigation. 
 
 [(i)(l) The Attorney General may act on behalf of any group of 
 damaged citizens he determines would be more adequately repre- 
 sented as a class in recovery of claims under this section. Sums re- 
 covered shall be distributed to the members of such group. If, 
 within 90 days after a discharge of oil in violation of this section 
 has occurred, the Attorney General fails to act in accordance with 
 this paragraph, to sue on behalf of a group of persons who may be 
 entitled to compensation pursuant to this section for damages 
 caused by such discharge, any member of such group may maintain 
 a class action to recover such damages on behalf of such group. 
 Failure of the Attorney General to act in accordance with this sub- 
 section shall have no bearing on any class action maintained in ac- 
 cordance with this paragraph. 
 
 [(2) In any case where the number of members in the class ex- 
 ceeds 1,000, publishing notice of the action in the Federal Register 
 and in local newspapers serving the areas in which the damaged 
 parties reside shall be deemed to fulfill the requirement for public 
 notice established by rule 23(c)(2) of the Federal Rules of Civil Pro- 
 cedure. 
 
 [(3) The Secretary may act on behalf of the public as trustee of 
 the natural resources of the marine environment to recover for 
 damages to such resources in accordance with this section. Sums 
 recovered shall be applied to the restoration and rehabilitation of 
 such natural resources by the appropriate agencies of Federal or 
 State government. 
 
 ECJX1) The Secretary shall establish by regulation procedures for 
 the filing and payment of claims for cleanup costs and damages 
 pursuant to this Act. 
 
 [(2) No claims for payment of cleanup costs or damages which 
 are filed with the Secretary more than 3 years after the date of the 
 discharge giving rise to such claims shall be considered. 
 
 [(3) Appeals from any final determination of the Secretary pur- 
 suant to this section shall be filed not later than 30 days after such 
 determination in the United States Court of Appeals of the circuit 
 within which the nearest adjacent coastal State is located.] 
 
 E(k])fe) (1) This section shall not be interpreted to preempt the 
 field of liability or to preclude any State from imposing additional 
 requirements or liability for any discharge of oil from a deepwater 
 port or a vessel within any safety zone. 
 
 (2) Any person who receives compensation for damages pursuant 
 to this section shall be precluded from recovering compensation for 
 the same damages pursuant to any other State or Federal law. Any 
 person who receives compensation for damages pursuant to any 
 other Federal or State law shall be precluded from receiving com- 
 pensation for the same damages as provided in this section. 
 
 [(1) The Secretary shall require that any owner or operator of a 
 vessel using any deepwater port, or any licensee of a deepwater 
 port, shall carry insurance or give evidence of other financial re- 
 
76 
 
 sponsibility in an amount sufficient to meet the liabilities imposed 
 by this section.] 
 
 [(m)] (d) As used in this section the term — 
 
 [(1) "cleanup costs" means all actual costs, including but not 
 limited to costs of the Federal Government, of any State or 
 local government, of other nations or of their contractors or 
 subcontractors incurred in the (A) removing or attempting to 
 remove, or (B) taking other measures to reduce or mitigate 
 damages from, any oil discharged into the marine environment 
 in violation of subsection (a)(1) of this section; 
 
 [(2) "damages" means all damages (except cleanup costs) 
 suffered by any person, or involving real or personal property, 
 the natural resources of the marine environment, or the coast- 
 al environment of any nation, including damages claimed with- 
 out regard to ownership of any affected lands, structures, fish, 
 wildlife, or biotic or natural resources;] 
 
 [(3)] (1) "discharge" includes, but is not limited to, any 
 spilling, leaking, pumping, pouring, emitting emptying, or 
 dumping into the marine environment of quantities of oil de- 
 termined to be harmful pursuant to regulations issued by the 
 Administrator of the Environmental Protection Agency; and 
 
 E(4)] (2) "owner or operator" means any person owning, op- 
 erating, or chartering by demise, a vessel. 
 [(n)(l) The Attorney General, in cooperation with the Secretary, 
 the Secretary of State, the Secretary of the Interior, the Adminis- 
 trator of the Environmental Protection Agency, the Council on En- 
 vironmental Quality, and the Administrative Conference of the 
 United States, is authorized and directed to study methods and pro- 
 cedures for implementing a uniform law providing liability for 
 cleanup costs and damages from oil spills from Outer Continental 
 Shelf operations, deepwater ports, vessels, and other ocean-related 
 sources. The study shall give particular attention to methods of ad- 
 judicating and settling claims as rapidly, economically, and equita- 
 bly as possible. 
 
 [(2) The Attorney General shall report the results of his study 
 together with any legislative recommendations to the Congress 
 within 6 months after the date of enactment of this Act.] 
 
 RELATIONSHIP TO OTHER LAWS 
 
 Sec. 19. (a)(1) The Constitution, laws, and treaties of the United 
 States shall apply to a deepwater port licensed under this Act and 
 to activities connected, associated, or potentially interfering with 
 the use or operation of any such port, in the same manner as if 
 such port were an area of exclusive Federal jurisdiction located 
 within a State. Nothing in this Act shall be construed to relieve, 
 exempt, or immunize any person from any other requirement im- 
 posed by Federal law, regulation, or treaty [.]; except that dis- 
 charges from a deepwater port or from a vessel within a deepwater 
 port safety zone which are subject to the civil penalty provisions of 
 section 18(a)(2) of this Act shall not be subject to the penalty provi- 
 sions of any other Federal law. Deepwater ports licensed under this 
 
77 
 
 Act do not possess the status of islands and have no territorial seas 
 of their own. 
 
 The Outer Continental Shelf Lands Act Amendments of 1978 
 
 ******* 
 
 [TITLE III— OFFSHORE OIL SPILL POLLUTION FUND 
 
 [Sec. 
 
 301. Definitions. 
 
 [Sec. 
 
 302. Fund establishment, adminstration, and financing. 
 
 [Sec. 
 
 303. Damages and claimants. 
 
 [Sec. 
 
 304. Liability. 
 
 [Sec. 
 
 305. Financial responsibility. 
 
 [Sec. 
 
 306. Notification, designation, and advertisement. 
 
 [Sec. 
 
 307. Claims settlement. 
 
 [Sec. 
 
 308. Subrogation. 
 
 [Sec. 
 
 309. Jurisdiction and venue. 
 
 [Sec. 
 
 310. Relationship to other law. 
 
 [Sec. 
 
 311. Prohibition. 
 
 [Sec. 
 
 312. Penalties. 
 
 [Sec. 
 
 313. Authorization of appropriation. 
 
 [Sec. 
 
 314. Annual report. 
 
 [Sec. 
 
 315. Effective dates.] 
 
 [TITLE III— OFFSHORE OIL SPILL POLLUTION FUND 
 [definitions 
 
 [Sec. 301. For the purposes of this title, the term — 
 
 [(1) "Secretary" means the Secretary of Transportation; 
 
 [(2) "Fund" means the Offshore Oil Pollution Compensation 
 Fund established under section 302 of this title 
 
 [(3) "person" means an individual, firm, corporation, asso- 
 ciation, partnership, consortium, joint venture, or governmen- 
 tal entity 
 
 [(4) "incident" means any occurrence or series of related oc- 
 currences, involving one or more offshore facilities or vessels, 
 or any combination thereof, which causes or poses an immi- 
 nent threat of oil pollution 
 
 [(5) "vessel" means every description of watercraft or other 
 contrivance, whether or not self-propelled, which is operating 
 in the waters above the Outer Continental Shelf (as the term 
 "outer Continental Shelf is defined in section 2(a) of the 
 Outer Continental Shelf Lands Act (43 U.S.C. 1331(a))), or 
 which is operating in the waters above submerged lands sea- 
 ward from the coastline of a State (as the term "submerged 
 lands" is described in section 2(a) of the Submerged Lands Act 
 (43 U.S.C. 1301 (a)(2))), and which is transporting oil directly 
 from an offshore facility 
 
 [(6) "public vessel" means a vessel which — 
 
 [(A) is owned or chartered by demise, and operated by 
 (i) the United States, (ii) a State or political subdivision 
 thereof, or (iii) a foreign government; and 
 [(B) is not engaged in commercial service; 
 
78 
 
 [(7) "facility" means a structure, or a group of structures 
 (other than a vessel or vessels), used for the purpose of trans- 
 porting, drilling for, producing, processing, storing, transfer- 
 ring, or otherwise handling oil; 
 
 [(8) "offshore facility" includes any oil refinery, drilling 
 structure, oil storage or transfer terminal, or pipeline, or any 
 appurtenance related to any of the foregoing, which is used to 
 drill for, produce, store, handle, transfer, process, or transport 
 oil produced from the Outer Continental Shelf (as the term 
 "outer Continental Shelf is defined in section 2(a) of the 
 Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)))), and is 
 located on the Outer Continental Shelf, except that such term 
 does not include (A) a vessel, or (B) a deep water port (as the 
 term "deep water port" is defined in section 3(10) of the Deep- 
 water Port Act of 1974 (33 U.S.C. 1502)); 
 [(9) "oil pollution" means — 
 
 [(A) the presence of oil either in an unlawful quantity 
 or which has been discharged at an unlawful rate (i) in or 
 on the waters above submerged lands seaward from the 
 coastline of a State (as the term "submerged lands" is de- 
 scribed in section 2(a)(2) of the Submerged Lands Act (43 
 U.S.C. 1301(a)(2))), or on the adjacent shoreline of such a 
 State, or (ii) on the waters of the contiguous zone estab- 
 lished by the United States under Article 24 of the Con- 
 vention on the Territorial Sea and the Contiguous Zone (15 
 UST 1606); or; 
 
 [(B) the presence of oil in or on the waters of the high 
 seas outside the territorial limits of the United States — 
 
 [(i) when discharged in connection with activities 
 conducted under the Outer Continental Shelf Lands 
 Act (43 U.S.C. 1331 et seq.); or 
 
 [(ii) causing injury to or loss of natural resources 
 belonging to, appertaining to, or under the exclusive 
 management authority of the United States; or 
 [(C) the presence of oil in or on the territorial sea, navi- 
 gable or internal waters, or adjacent shoreline of a foreign 
 country, in a case where damages are recoverable by a for- 
 eign claimant under this title; 
 [(10) "United States claimant" means any person residing in 
 the United States, the Government of the United States or an 
 agency thereof, or the government of a State or a political sub- 
 division thereof, who asserts a claim under this title; 
 
 [(11) "foreign claimant" means any person residing in a for- 
 eign country, the government of a foreign country, or any 
 agency or political subdivision thereof, who asserts a claim 
 under this title; 
 
 [(12) "United States" includes and "State" means the sever- 
 al States of the United States, the District of Columbia, the 
 Commonwealth of Puerto Rico, the Canal Zone, Guam, Ameri- 
 can Samoa, the United States Virgin Islands, the Common- 
 wealth of the Northern Mariana Islands, the Trust Territory of 
 the Pacific Islands, and any other territory or possession over 
 which the United States has jurisdiction; 
 
79 
 
 [(13) "oil" means petroleum, including crude oil or any frac- 
 tion or residue therefrom; 
 
 [(14) "cleanup costs" means costs of reasonable measures 
 taken, after an incident has occurred, to prevent, minimize, or 
 mitigate oil pollution from such incident; 
 
 [(15) "damages" means compensation sought pursuant to 
 this title by any person suffering any direct and actual injury 
 proximately caused by the discharge of oil from an offshore fa- 
 cility or vessel, except that such term does not include cleanup 
 costs; 
 
 [(16) "person in charge" means the individual immediately 
 responsible for the operation of a vessel or offshore facility; 
 [(17) "claim" means a demand in writing for a sum certain; 
 [(18) "discharge" means any emission, intentional or unin- 
 tentional, and includes spilling, leaking, pumping, pouring, 
 emptying, or dumping; 
 
 [(19) "owner" means any person holding title to, or in the 
 absence of title, any other indicia of ownership of, a vessel or 
 offshore facility, whether by lease, permit, contract, license, or 
 other form of agreement, or with respect to any offshore facili- 
 ty abandoned without prior approval of the Secretary of the In- 
 terior, the person who owned such offshore facility immediate- 
 ly prior to such abandonment, except that such term does not 
 include a person who, without participating in the manage- 
 ment or operation of a vessel or offshore facility, holds indicia 
 of ownership primarily to protect his security interest in the 
 vessel or offshore facility; 
 [(20) "operator" means — 
 
 [(A) in the case of a vessel, a charterer by demise or 
 any other person, except the owner, who is responsible for 
 the operation, manning, victualing, and supplying of the 
 vessel; or 
 
 [(B) in the case of an offshore facility, any person, 
 except the owner, who is responsible for the operation of 
 such facility by agreement with the owner; 
 [(21) "property" means littoral, riparian, or marine proper- 
 ty; 
 
 [(22) "removal costs" means — 
 
 [(A) costs incurred under subsection (c), (d), or (1) of sec- 
 tion 311 of the Federal Water Pollution Control Act, and 
 section 5 of the Intervention on the High Seas Act; and 
 
 [(B) cleanup costs, other than the costs described in sub- 
 paragraph (A); 
 [(23) "guarantor" means the person, other than the owner 
 or operator, who provides evidence of financial responsibility 
 for an owner or operator; 
 
 [(24) "gross ton" means a unit of 100 cubic feet for the pur- 
 pose of measuring the total unit capacity of a vessel; and 
 
 [(25) "barrel" means 42 United States gallons at 60 degrees 
 Fahrenheit. 
 
80 
 
 FUND ESTABLISHMENT, ADMINISTRATION, AND FINANCING 
 
 [Sec. 302. (a) There is hereby established in the Treasury of the 
 United States an Offshore Oil Pollution Compensation Fund in an 
 amount not to exceed $200,000,000, except that such limitation 
 shall be increased to the extend necessary to permit any moneys 
 recovered or collected which are referred to in subsection (b)(2) of 
 this section to be paid into the Fund. The Fund shall be adminis- 
 tered by the Secretary and the Secretary of the Treasury as speci- 
 fied in this title. The Fund may sue and be sued in its own name. 
 
 [(b) The Fund shall be composed of— 
 
 [(1) all fees collected pursuant to subsection (d) of this sec- 
 tion; and 
 
 [(2) all other moneys recovered or collected on behalf of the 
 Fund under section 308 or any other provision of this title. 
 
 [(c) The Fund shall be immediately available for — 
 [(1) removal costs described in section 301(22); 
 [(2) the processing and settlement of claims under section 
 307 of this title (including the costs of assessing injury to, or 
 destruction of, natural resources); and 
 
 [(3) subject to such amounts as are provided in appropriation 
 Acts all administrative and persnnel costs of the Federal Govern- 
 ment incident to the administration of this title, including, but not 
 limited to, the claims settlement activities and adjudicatory and ju- 
 dicial proceedings, whether or not such costs are recoverable under 
 section 308 of this title. 
 
 The Secretary is authorized to promulgate regulations designating 
 the person or persons who may obligate available money in the 
 Fund for such purposes. 
 
 [(d)(1) The Secertary shall levy and the Secretary of the Treas- 
 ury shall collect a fee of not to exceed 3 cents per barrel on oil ob- 
 tained from the Outer Continental Shelf, which shall be imposed 
 on the owner of the oil when such oil is produced. 
 
 [(2) The Secretary of the Treasury, after consulting with the Sec- 
 retary, may promulgate reasonable regulations relating to the col- 
 lection of the fees authorized by paragraph (1) of this subsection 
 and, from time to time, the modification thereof. Any modification 
 shall become effective on the date specified in the regulations 
 making such modification, but no earlier than the ninetieth day 
 following the date such regulation is published in the Federal Reg- 
 ister. Any modification of the fee shall be designed to insure that 
 the Fund is maintained at a level of not less than $100,000,000 and 
 not more than $200,000,000. No regulation that sets or modifies 
 fees, whether or not in effect, may be stayed by any court pending 
 completion of judicial review of such regulation. 
 
 [(3)(A) Any person who fails to collect or pay any fee as required 
 by any regulation promulgated under paragraph (2) of this subsec- 
 tion shall be liable for civil penalty not to exceed $10,000, to be as- 
 sessed by the Secretary of the Treasury, in addition to the fee re- 
 quired to be collected or paid and the interest on such fee at the 
 rate such fee would have earned if collected or paid when due and 
 invested in special obligations of the United States in accordance 
 with subsection (e)(2) of this section. Upon the failure of any person 
 so liable to pay any penalty, fee, or interest upon demand, the At- 
 
81 
 
 torney General may, at the request of the Secretary of the Treas- 
 ury, bring an action in the name of the Fund against that person 
 for such amount. 
 
 [(B) Any person who falsifies records or documents required to 
 be maintained under any regualtion promulgated under this sub- 
 section shall be subject to prosecution for a violation of section 
 1001 of title 18, United States Code. 
 
 [(4) The Secretary of the Treasury may, by regulation, designate 
 the reasonably necessary records and documents to be kept by per- 
 sons for who fees are to be collected pursuant to paragraph (1) of 
 this subsection, and the Secretary of the Treasury and the Comp- 
 troller General of the United States shall have access to such 
 records and documents for the purpose of audit and examination. 
 
 [(e)(1) The Secretary shall determine the level of funding re- 
 quired for immediate access in order to meet potential obligations 
 of the Fund. 
 
 [(2) The Secretary of the Treasury may invest any excess in the 
 Fund, above the level determined under paragraph (1) of this sub- 
 section, in interest-bearing special obligations of the United States. 
 Such special obligations may be redeemed at any time in accord- 
 ance with the terms of the special issue and pursuant to regula- 
 tions promulgated by the Secretary of the Treasury. The interest 
 on, and the proceeds from the sale of, any obligations held in the 
 Fund shall be deposited in and credited to the Fund. 
 
 [(f) If at any time the moneys available in the Fund are insuffi- 
 cient to meet the obligations of the Fund, the Secretary shall issue 
 to the Secretary of the Treasury notes or other obligations in the 
 forms and denominations, bearing the interest rates and maturi- 
 ties, and subject to such terms and conditions as may be prescribed 
 by the Secretary of the Treasury. Redemption of such notes or 
 other obligations shall be made by the Secretary from moneys in 
 the Fund. Such notes or other obligations shall bear interest at a 
 rate determined by the Secretary of the Treasury, taking into con- 
 sideration the average market yield on outstanding marketable ob- 
 ligations of comparable maturity. The Secretary of the Treasury 
 shall purchase any notes or other obligations issued under this sub- 
 section and, for that purpose, he is authorized to use as a public 
 debt transaction the proceeds from the sale of any securities issued 
 under the Second Liberty Bond Act. The purpose for which securi- 
 ties may be issued under that Act are extended to include any pur- 
 chase of such notes or other obligations. The Secretary of the 
 Treasury may at any time sell any of the notes or other obligations 
 acquired by him under this subsection. All redemptions, purchases, 
 and sales of the Secretary of the Treasury of such notes or other 
 obligations shall be treated as public debt transactions of the 
 United States. 
 
 [damages and claimants 
 
 [Sec. 303. (a) Claims for economic loss, arising out of or directly 
 resulting from oil pollution, may be asserted for — 
 [(1) removal costs; and 
 [(2) damages, including — 
 
82 
 
 [(A) injury, to, or destruction of, real or personal proper- 
 ty; 
 
 [(B) loss of use of real or personal property; 
 [(C) injury to, or destruction of, natural resources; 
 [(D) loss of use of natural resources; 
 [(E) loss of profits or impairment of earning capacity 
 due to injury to, or destruction of, real or personal proper- 
 ty or natural resources; and 
 
 [(F) loss of tax revenue for a period of one year due to 
 injury to real or personal property. 
 [(b) A claim authorized by subsection (a) of this section may be 
 asserted — 
 
 [(1) under paragraph (1), by any claimant, except that the 
 owner or operator of a vessel or offshore facility involved in an 
 incident may assert such a claim only if he can show — 
 
 [(A) that he is entitled to a defense to liability under 
 section 304(c)(1) or 304(c)(2) of this title; or 
 
 [(B) if not entitled to such a defense to liability, that he 
 is entitled to a limitation of liability under section 304(b), 
 except that if he is not entitled to such a defense to liabil- 
 ity but is entitled to such a limitation of liability, such 
 claim may be asserted only as to the removal costs in- 
 curred in excess of that limitation; 
 [(2) under paragraphs (2) (A), (B), and (D), by any United 
 States claimant if the property involved is owned or leased, or 
 the natural resource involved is utilized, by the claimant; 
 
 [(3) under paragraph (2)(C), by the President, as trustees for 
 natural resources over which the Federal Government has sov- 
 ereign rights or exercises exclusive management authority, or 
 by any State for natural resources within the boundary of the 
 State belonging to, managed by, controlled by, or appertaining 
 to the State, and sums recovered under paragraph (2)(C) shall 
 be available for use to restore, rehabilitate, or acquire the 
 equivalent of such natural resources by the appropriate agen- 
 cies of the Federal Government or the State, but the measure 
 of such damages shall not be limited by the sums which can be 
 used to restore or replace such resources; 
 
 [(4) under paragraph (2)(E), by any United States claimant if 
 
 the claimant derives at least 25 per centurm of his earnings 
 
 from activities which utilize the property or natural resource; 
 
 [(5) under paragraph (2)(F), by the Federal Government and 
 
 any State or political subdivision thereof; 
 
 [(6) under paragraphs (2)(A) through (E), by a foreign claim- 
 ant to the same extent that a United States claimant may 
 assert a claim if — 
 
 [(A) the oil pollution occurred in or on the territorial 
 sea, navigable waters or internal waters, or adjacent shore- 
 line of a foreign country of which the claimant is a resi- 
 dent; 
 
 [(B) the claimant is not otherwise compensated for his 
 loss; 
 
 [(C) the oil was discharged from an offshore facility or 
 from a vessel in connection with activities conducted 
 
83 
 
 under the Outer Continental Shelf Lands Act (43 U.S.C. 
 1331 et seq.); and 
 
 [(D) recovery is authorized by a treaty or an executive 
 agreement between the United States and the foreign 
 country involved, or the Secretary of State, in consultation 
 with the Attorney General and other appropriate officials, 
 certifies that such country provides a comparable remedy 
 for United States claimants; 
 [(7) under paragraph (1) or (2), by the Attorney General, on 
 his own motion or at the request of the Secretary, on behalf of 
 any group of United States claimants who may assert a claim 
 under this subsection, when he determines that the claimants 
 would be more adequately represented as a class in asserting 
 their claims. 
 [(c) If the Attorney General fails to take action under paragraph 
 (7) of subsection (b) within sixty days of the date on which the Sec- 
 retary designates a source under section 306 of this title, any 
 member of a group described in such paragraph may maintain a 
 class action to recover damages on behalf of that group. Failure of 
 the Attorney General to take action shall have no bearing on any 
 class action maintained by any claimant for damages authorized by 
 this section. 
 
 [liability 
 
 [Sec. 304. (a) Subject to the provisions of subsections (b) and (c) 
 of this section, the owner and operator of a vessel other than a 
 public vessel, or of an offshore facility, which is the source of oil 
 pollution, or poses a threat of oil pollution in circumstances which 
 justify the incurrence of the type of costs described in section 
 301(22) of this title, shall be jointly, severally, and strictly liable for 
 all loss for which a claim may be asserted under section 303 of this 
 title. 
 
 [(b) Except when the incident is caused primarily by willful mis- 
 conduct or gross negligence, within the privity or knowledge of the 
 owner or operator, or is caused primarily by a violation, within the 
 privity or knowledge of the owner or operator, of applicable safety, 
 construction, or operating standards or regulations of the Federal 
 Government, the total of the liability under subsection (a) of this 
 section incurred by, or behalf of, the owner or operator shall be — 
 [(1) in the case of a vessel, limited to $250,000 or $300 per 
 gross ton, whichever is greater, except when the owner or oper- 
 ator of a vessel fails or refuses to provide all reasonable coop- 
 eration and assistance requested by the responsible Federal of- 
 ficial in furtherance of cleanup activities; or 
 
 [(2) in the case of an offshore facility, the total of removal 
 and cleanup costs, and an amount limited to $35,000,000 for all 
 damages. 
 [(c) There shall be no liability under subsection (a) of this sec- 
 tion — 
 
 [(1) if the incident is caused solely by any act of war, hostil- 
 ities, civil war, or insurrection, or by an unanticipated grave 
 natural disaster or other natural phenomenon of an exception- 
 al, inevitable, and irresistable character, the effect of which 
 
84 
 
 could not have been prevented or avoided by the exercise of 
 due care or foresight; or 
 
 [(2) if the incident is caused solely by the negligent or inten- 
 tional act of the damaged party or any third party (including 
 any government entity). 
 [(d) Notwithstanding the limitations, exceptions, or defenses of 
 subsection (b) or (c) of this section, all costs of removal incurred by 
 the Federal Government or any State or local official or agency in 
 connection with a discharge of oil from any offshore facility or 
 vessel shall be borne by the owner and operator of the offshore fa- 
 cility or vessel from which the discharge occurred. 
 
 [(e) The Secretary shall, from time to time, report to Congress 
 on the desirability of adjusting the monetary limitation of liability 
 specified in subsection (b) of this section. 
 
 [(f)(1) Subject to the provisions of paragraph (2) of this subsec- 
 tion, the Fund shall be liable, without any limitation, for all losses 
 for which a claim may be asserted under section 303 of this title, to 
 the extent that such losses are not otherwise compensated. 
 
 [(2) Except for the removal costs specified in section 301(22), 
 there shall be no liability under paragraph (1) of this subsection — 
 [(A) as to a particular claimant, where the incident or eco- 
 nomic loss is caused, in whole or in part, by the gross negli- 
 gence or willful misconduct of that claimant; or 
 
 [(B) as to a particular claimant, to the extent that the inci- 
 dent or economic loss is caused by the negligence of that claim- 
 ant. 
 [(g)(1) In addition to the losses for which claims may be asserted 
 under section 303 of this title, and without regard to the limitation 
 of liability provided in subsection (b) of this section, the owner, op- 
 erator, or guarantor of an offshore facility or vessel shall be liable 
 to the claimant for interest on the amount paid in satisfaction of 
 the claim for the period from the date upon which the claim is pre- 
 sented to such person to the date upon which the claimant is paid, 
 inclusive, less the period, if any, from the date upon which such 
 owner, operator, or guarantor offers the claimant an amount equal 
 to or greater than the amount finally paid in satisfaction of the 
 claim to the date upon which the claimant accepts such amount, 
 inclusive. However, if such owner, operator, or guarantor offers the 
 claimant, within sixty days of the date upon which the claim is 
 presented, or of the date upon which advertising is commenced 
 pursuant to section 306 of this title, whichever is later, an amount 
 equal to or greater than the amount finally paid in satisfaction of 
 the claim, the owner, operator, or guarantor shall be liable for the 
 interest provided in this paragraph only from the date the offer is 
 accepted by the claimant to the date upon which payment is made 
 to the claimant, inclusive. 
 
 [(2) The interest provided in paragraph (1) of this subsection 
 shall be calculated at the average of the highest rate for commer- 
 cial and finance company paper of maturities of one hundred and 
 eighty days or less obtaining on each of the days included within 
 the period for which interest must be paid to the claimant, as pub- 
 lished in the Federal Reserve Bulletin. 
 
 [(h) Nothing in this title shall bar a cause of action that an 
 owner or operator, subject to liability under subsection (a) of this 
 
85 
 
 section, or a guarantor, has or would have, by reason of subroga- 
 tion or otherwise, against any person. 
 
 [(i) To the extent that they are in conflict or otherwise inconsist- 
 ent with any other provision of law relating to liability or the limi- 
 tation thereof, the provisions of this section shall supersede such 
 other provision of law, including section 4283(a) of the Revised Stat- 
 utes (46 U.S.C. 183(a)). 
 
 [financial responsibility 
 
 [Sec. 305. (a)(1) The owner or operator of any vessel (except a 
 non-self-propelled barge that does not carry oil as fuel or cargo 
 which uses an offshore facility shall establish and maintain, in ac- 
 cordance with regulations promulgated by the President, evidence 
 of financial responsibility sufficient to satisfy the maximum 
 amount of liability to which the owner or operator of such vessel 
 would be exposed in a case where he would be entitled to limit his 
 liability in accordance with the provisions of section 304(b) of this 
 title. Financial responsibility may be established by any one, or 
 any combination, of the following methods, acceptable to the Presi- 
 dent: evidence of insurance guarantee, surety bond, or qualification 
 as a self-insurer. Any bond filed shall be issued by a bonding com- 
 pany authorized to do business in the United States. In any case 
 where an owner or operator owns, operates, or charters more than 
 one vessel subject to this subsection, evidence of financial responsi- 
 bility need be established only to meet the maximum liability ap- 
 plicable to the largest of such vessels. 
 
 [(2) The Secretary, in accordance with regulations promulgated 
 by him, shall — 
 
 [(A) deny entry to any port or place in the United States or 
 to the navigable waters to; and 
 
 [(B) detain at the port or place in the United States from 
 which it is about to depart for any other port or place in the 
 United States, 
 any vessel subject to this subsection which, upon request, does not 
 produce certification furnished by the President that such vessel is 
 in compliance with the financial responsibility provisions of para- 
 graph (1) of this subsection. 
 
 [(3) The Secretary, in accordance with regulations promulgated 
 by him, shall have access to all offshore facilities and vessels con- 
 ducting activities under the Outer Continental Shelf Lands Act, 
 and such facilities and vessels shall, upon request, show certifica- 
 tion of financial responsibility. 
 
 [(b) The owner or operator of an offshore facility which (1) is 
 used for drilling for, producing, or processing oil, or (2) has the ca- 
 pacity to transport, store, transfer, or otherwise handle more than 
 one thousand barrels of oil at any one time, shall establish and 
 maintain, in accordance with regulations promulgated by the Presi- 
 dent, evidence of financial responsibility sufficient to satisfy the 
 maximum amount of liability to which the owner or operator of 
 such facility would be exposed in a case where he would be entitled 
 to limit his liability in accordance with the provisions of section 
 304(b) of this title, or $35,000,000, whichever is less. 
 
86 
 
 [(c) (1) Any claim authorized by section 303(a) may be asserted 
 directly against any guarantor providing evidence of financial re- 
 sponsibility for any owner or operator of an offshore facility or 
 vessel as required under this section. In defending such claim, the 
 guarantor shall be entitled to invoke all rights and defenses which 
 would be available to such owner or operator under this title. Such 
 guarantor shall also be entitled to invoke the defense that the inci- 
 dent was caused by the willful misconduct of such owner or opera- 
 tor, but shall not be entitled to invoke any other defense which 
 such guarantor might be entitled to invoke in proceedings brought 
 by such owner or operator against such guarantor. 
 
 [(2) The total liability of any guarantor in a direct action suit 
 brought under this section shall be limited to the aggregate 
 amount of the monetary limits of the policy of insurance, guaran- 
 tee, surety bond, letter of credit, or similar instrument obtained 
 from the guarantor by the person subject to liability. Nothing in 
 this subsection shall be construed, interpreted or applied to dimin- 
 ish the liability of any person under this Act or other applicable 
 law. 
 
 [(d) The President shall conduct a study to determine — 
 
 [(1) whether adequate private oil pollution insurance protec- 
 tion is available on reasonable terms and conditions to the 
 owners and operators of vessels, onshore facilities, and offshore 
 facilities; and 
 
 [(2) whether the market for such insurance is sufficiently 
 competitive to assure purchasers of features such as a reasona- 
 ble range of deductibles, coinsurance provisions, and exclu- 
 sions. 
 The President shall submit the results of his study, together with 
 his recommendations, within one year after the date of enactment 
 of this title, and shall submit an interim report on his study within 
 three months after such date of enactment. 
 
 [(e) Any owner or operator of an offshore facility may enter into 
 an indemnity, hold harmless, or similar agreement with any 
 person holding a lease on the Outer Continental Shelf with respect 
 to any liability arising under this title. Notwithstanding the provi- 
 sion of this subsection, any such indemnity, hold harmless, or simi- 
 lar agreement shall not relieve such owner, operator, or person 
 from liability arising under this title. Nothing in this subsection 
 shall be construed to alter or in any way affect the financial re- 
 sponsibility requirement imposed under this section. 
 
 [notification, designation, and advertisement 
 
 [Sec. 306. (a) The person in charge of a vessel or offshore facility 
 which is involved in an incident shall immediately notify the Secre- 
 tary of the incident as soon as he has knowledge thereof. Notifica- 
 tion received pursuant to this subsection or information obtained 
 by the exploitation of such notification shall not be used against 
 such person or his employer in any criminal case, other than a case 
 involving prosecution for perjury or for giving a false statement. 
 
 [(b)(1) When the Secretary receives information pursuant to sub- 
 section (a) of this section or otherwise of an incident which involves 
 oil pollution, the Secretary shall, where possible, designate the 
 
87 
 
 source or sources of the oil pollution and shall immediately notify 
 the owner and operator of such source and the guarantor of such 
 designation. 
 
 [(2) When a source designated under paragraph (1) of this sub- 
 section is a vessel or offshore facility and the owner, operator, or 
 guarantor fails to inform the Secretary, within five days after re- 
 ceiving notification of the designation, of his denial of such desig- 
 nation, such owner, operator, or guarantor, as required by regula- 
 tions promulgated by the Secretary, shall advertise the designation 
 and the procedures by which claims may be presented to him. If 
 advertisement is not made in accordance with this paragraph, the 
 Secretary shall, as he finds necessary, and at the expense of the 
 owner, operator, or guarantor involved,^ advertise the designation 
 and the procedures by which claims may be presented to such 
 owner, operator, or guarantor. 
 [(c) In a case where — 
 
 [(1) the owner, operator, and guarantor all deny a designa- 
 tion in accordance with paragraph (2) of subsection (b) of this 
 section; 
 
 [(2) the source of the discharge was a public vessel; or 
 [(3) the Secretary is unable to designate the source of 
 sources or the discharge under paragraph (1) of such subsection 
 (b), 
 the Secretary shall advertise or otherwise notify potential claim- 
 ants of the procedures by which claims may be presented of the 
 Fund. 
 
 [(d) Advertisement under subsection (b) of this section shall com- 
 mence no later than fifteen days after the date of the designation 
 made under such subsection and shall continue for a period of no 
 less than thirty days. 
 
 [claims settlement 
 
 [Sec. 307. (a) Except as provided in subsection (b) of this section, 
 all claims shall be presented to the owner, operator, or guarantor. 
 [(b) All claims shall be presented to the Fund — 
 
 [(1) where the Secretary has advertised or otherwise notified 
 claimants in accordance with section 306(c) of this title; or 
 
 [(2) where the owner or operator may recover under the pro- 
 visions of section 303(b) (1) of this title. 
 [(c) In the case of a claim presented in accordance with subsec- 
 tion (a) of this section, and in which — 
 
 [(1) the person to whom the claim is presented denies all li- 
 ability for the claim, for any reason; or 
 
 [(2) the claim is not settled by any person by payment to the 
 
 claimant within sixty days from the date upon which (A) the 
 
 claim is presented, or (B) advertising is commenced pursuant 
 
 to section 306(b), whichever is later, 
 
 the claimant may elect to commence an action in court against the 
 
 owner, operator, or guarantor, or to present the claim to the Fund, 
 
 that election to be irrevocable and exclusive. 
 
 [(d) In the case of a claim presented in accordance with subsec- 
 tion (a) of this section, where full and adequate compensation is un- 
 available, either because the claim exceeds a limits of liability in- 
 
88 
 
 voked under section 304(b) of this title or because the owner, opera- 
 tor, and guarantor to whom the claim is presented are financially 
 incapable of meeting their obligations in full, a claim for the un- 
 compensated damages may be presented to the Fund. 
 
 [(e) In the case of a claim which is presented to any person, pur- 
 suant to subsection (a) of this section, and which is being presented 
 to the Fund, pursuant to subsection (c) or (d) of this section, such 
 person, at the request of the claimant, shall transmit the claim and 
 supporting documents to the Fund. The Secretary may, by regula- 
 tion, prescribe the documents to be transmitted and the terms 
 under which they are to be transmitted. 
 
 [(f) In the case of a claim presented to the Fund, pursuant to 
 subsection (b), (c), or (d) of this section, and in which the Fund — 
 [(1) denies all liability for the claim, for any reason; or 
 [(2) does not settle the claim by payment to the claimant 
 within sixty days after the date upon which (A) the claim is 
 presented to the Fund, or (B) advertising is commenced pursu- 
 ant to section 306(c) of this title, whichever is later, 
 the claimant may submit the dispute to the Secretary for decision 
 in accordance with section 554 of title 5, United States Code. How- 
 ever, a claimant who has presented a claim to the Fund pursuant 
 to such subsection (b) may elect to commence an action in court 
 against the Fund in lieu of submission of the dispute to the Secre- 
 tary for decision, that election to be irrevocable and exclusive. 
 
 [(g)(1) The Secretary shall promulgate regulations which estab- 
 lish uniform procedures and standards for the appraisal and settle- 
 ment of claims against the Fund. 
 
 [(2) Except as provided in paragraph (3) of this subsection, the 
 Secretary shall use the facilities and services of private insurance 
 and claims adjusting organizations or State agencies in processing 
 claims against the Fund and may contract to pay compensation for 
 those facilities and services. Any contract made under the provi- 
 sions of this paragraph may be made without regard to the provi- 
 sions of section 3709 of the Revised Statutes (41 U.S.C. 5) upon a 
 showing by the Secretary that advertising is not reasonably practi- 
 cable. The Secretary may make advance payments to a contractor 
 for services and facilities, and the Secretary may advance to the 
 contractor funds to be used for the payment of claims. The Secre- 
 tary may review and audit claim payments made pursuant to this 
 subsection. A payment to a claimant for a single claim in excess of 
 $100,000, or two or more claims aggregating in excess of $200,000, 
 shall be first approved by the Secretary. When the services of a 
 State agency are used in processing and settling claims, no pay- 
 ment may be made on a claim asserted by or on behalf of such 
 State or any of its agencies or subdivisions unless the payment has 
 been approved by the Secretary. 
 
 [(3) To the extent necessitated by extraordinary circumstances, 
 where the services of such private organizations or State agencies 
 are inadequate, the Secretary may use Federal personnel to process 
 claims against the Fund. 
 
 [(h) Notwithstanding subsection (b) of section 556 of title 5, 
 United States Code, the Secretary is authorized to appoint, from 
 time to time for a period of not to exceed one hundred and eighty 
 days, one or more panels, each comprised to three individuals, to 
 
89 
 
 hear and decide disputes submitted to the Secretary pursuant to 
 subsection (f) of this section. At least one member of each panel 
 shall be qualified to conduct adjudicatory proceedings and shall 
 preside over the activities of the panel. Each member of a panel 
 shall possess competence in the evaluation and assessment of prop- 
 erty damage and the economic losses resulting therefrom. Panel 
 members may be appointed from private life or from any Federal 
 agency except the staff administering the Fund. Each panel 
 member appointed from private life shall receive a per diem com- 
 pensation, and each panel member shall receive necessary travel- 
 ing and other expenses while engaged in the work of a panel. The 
 provisions of chapter 11 of title 18, United States Code, and of Ex- 
 ecutive Order 11222, as amended, regarding special Government 
 employees, shall apply to panel members appointed from private 
 life. 
 
 [(i)(l) Upon receipt of a request refer a decision from a claimant, 
 properly made, the Secretary shall refer the dispute to (A) an ad- 
 ministrative law judge appointed under section 3105 of title 5, 
 United States Code, or (B) a panel appointed under subsection (h) 
 of this section. 
 
 [(2) The administrative law judge and each member of a panel 
 to which a dispute is referred for decision shall be a resident of the 
 United States judicial circuit within which the damage complained 
 of occurred, or, if the damage complained of occurred within two or 
 more circuits, of any of the affected circuits, or, if the damage oc- 
 curred outside any circuit, of the nearest circuit. 
 
 [(3) Upon receipt of a dispute, the administrative law judge or 
 panel shall adjudicate the case and render a decision in accordance 
 with section 554 of title 5, United States Code. In any proceeding 
 subject to this subsection, the presiding officer may require by sub- 
 pena any person to appear and testify and produce books, papers, 
 documents, of tangible things at a hearing or deposition at any des- 
 ignated place. Subpenas shall be issued and enforced in accordance 
 with procedures in subsection (d) of section 555 of title 5, United 
 States Code, and rules promulgated by the Secretary. If a person 
 fails or refuses to obey a subpena, the Secretary may invoke the 
 aid of the district court of the United States where the person is 
 found, resides, or transacts business in requiring the attendance 
 and testimony of the person and the production by him of books, 
 papers, documents, or any tangible things. 
 
 [(4) A hearing conducted under this subsection shall be conduct- 
 ed within the United States judicial district within, or nearest to 
 which, the damage complained of occurred, or, if the damage com- 
 plained of occurred within two or more districts, in any of the af- 
 fected districts, or if the damage occurred outside any district, in 
 the nearest district. 
 
 [(5) The decision of the administrative law judge or panel under 
 this subsection shall be the final order of the Secretary, except that 
 the Secretary, in his discretion and in accordance with regulations 
 which he may promulgate, may review the decision upon his own 
 initiative or upon exception of the claimant or the Fund. 
 
 [(6) Final orders of the Secretary made under this subsection 
 shall be reviewable pursuant to section 702 of title 5, United States 
 Code, in the district courts of the United States. 
 
90 
 
 [(j)(D In any action brought pursuant to this title against an 
 owner, operator, or guarantor, both the plaintiff and defendant 
 shall serve a copy of the complaint and all subsequent pleadings 
 therein upon the Fund at the same time such pleadings are served 
 upon the opposing parties. 
 
 [(2) The Fund may intervene in any action described in para- 
 graph (1) of this subsection as a matter of right. 
 
 [(3) In any action described in paragraph (1) of this subsection to 
 which the Fund is a party, if the owner, operator, or guarantor 
 admits liability under this title, the Fund upon its motion shall be 
 dismissed therefrom to the extent of the admitted liability. 
 
 [(4) If the Fund receives from either the plaintiff or the defend- 
 ant notice of an action described in paragraph (1) of this subsec- 
 tion, the Fund shall be bound by any judgment entered therein, 
 whether or not the Fund was a party to the action. 
 
 [(5) If neither the plaintiff nor the defendant gives notice of an 
 action described in paragraph (1) of this subsection to the Fund, the 
 limitation of liability otherwise permitted by section 304(b) of this 
 title shall not be available to the defendant, and the plantiff shall 
 not recover from the Fund any sums not paid by the defendant. 
 
 [(k) In any brought against the Fund under this title, the plain- 
 tiff may join any owner, operator, or guarantor, and the Fund may 
 join any person who is or may be liable to the Fund under any pro- 
 vision of this title. 
 
 [(1) No claim may be presented, nor may an action be com- 
 menced for economic losses recoverable under this title, unless 
 such claim is presented to, or such action is commenced against, 
 the owner, operator, or guarantor, or the Fund, as to their respec- 
 tive liabilities, within three years after after the date of discovery 
 of the economic loss for which a claim may be asserted under sec- 
 tion 303(a) of this title, or within six years of the date of the inci- 
 dent which resulted in such loss, whichever is earlier. 
 
 [subrogation 
 
 [Sec. 308. (a) Any person or governmental entity, including the 
 Fund, who pays compensation to any claimant for an economic 
 loss, compensable under section 303 of this title, shall be subrogat- 
 ed to all rights, claims, and causes of action which such claimant 
 has under this title. 
 
 [(b) Upon request of the Secretary, the Attorney General may 
 commence an action, on behalf of the Fund, for the compensation 
 paid by the Fund to any claimant pursuant to this title. Such an 
 action may be commenced against an owner, operator, or guaran- 
 tor, or against any other person or governmental entity, who is 
 liable, pursuant to any law, to the compensated claimant or to the 
 Fund, for economic losses for which the compensation was paid. 
 
 [(c) In any claim or action by the Fund against any owner, oper- 
 ator, or guarantor, pursuant to the provisions of subsection (a) or 
 (b), the Fund shall recover— 
 
 [(1) for a claim presented to the Fund (where there has been 
 a denial of source designation) pursuant to section 307(b)(1) of 
 this title, or (where there has been a denial of liability) pursu- 
 ant to section 307(c)(1) of this title — 
 
91 
 
 [(A) subject only to the limitation of liability to which 
 the defendant is entitled under section 304(b) of this title, 
 the amount of the Fund has paid to the claimant, without 
 reduction; 
 
 [(B) interest on such amount, at the rate calculated in 
 accordance with section 304(g)(2) of this title, from the date 
 upon which the claim is presented by the claimant to the 
 defendant to the date upon which the Fund is paid by the 
 defendant, inclusive, less the period, if any, from the date 
 upon which the Fund offers to the claimant the amount fi- 
 nally paid by the Fund to the claimant in satisfaction of 
 the claim against the Fund to the date upon which the 
 claimant accepts that offer, inclusive; and 
 
 [(C) all costs incurred by the Fund by reason of the 
 claim, both of the claimant against the Fund and the Fund 
 against the defendant, including, but not limited to, proc- 
 essing costs, investigating costs, court costs, and attorneys' 
 fees; and 
 [(2) for a claim presented to the Fund pursuant to section 
 397(c)(2) of this title— 
 
 [(A) in which the amount the Fund has paid to the 
 claimant exceeds the largest amount, if any, the defendant 
 offered to the claimant in satisfaction of the claim of the 
 claimant against the defendant — 
 
 [(i) subject to dispute by the defendant as to any 
 excess over the amount offered to the claimant by the 
 defendant, the amount the Fund has paid to the claim- 
 ant; 
 
 [(ii) interest, at the rate calculated in accordance 
 with section 304(g)(2) of this title, for the period speci- 
 fied in paragraph (1)(B) of this subsection; and 
 
 (iii) all costs incurred by the Fund by reason of the 
 
 claim of the Fund against the defendant, including, 
 
 but not limited to, processing costs, investigating costs, 
 
 court costs, and attorneys' fees; or 
 
 [(B) in which the amount the Fund has paid to the 
 
 claimant and is less than or equal to the largest amount 
 
 the defendant offered to the claimant in satisfaction of the 
 
 claim of the claimant against the defendant — 
 
 [(i) the amount which the Fund has paid to the 
 claimant, without reduction; 
 
 [(ii) interest, at the rate calculated in accordance 
 with section 304(g)(2) of this title, from the date upon 
 which the claim is presented by the claimant to the 
 defendant to the date upon which the defendant of- 
 fered to the claimant the largest amount referred to in 
 this subparagraph, except that if the defendant 
 tenders the offer of the largest amount referred to in 
 this subparagraph within sixty days after the date 
 upon which the claim of the claimant is either pre- 
 sented to the defendant or advertising is commenced 
 pursuant to section 306 of this title, the defendant 
 shall not be liable for interest for that period; and 
 
92 
 
 [(iii) interest from the date upon which the claim of 
 the Fund against the defendant is presented to the de- 
 fendant to the date upon which the Fund is paid, in- 
 clusive, less the period, if any, from the date upon 
 which the defendant offers to the Fund the amount fi- 
 nally paid to the Fund in satisfaction of the claim of 
 the Fund to the date upon which the Fund accepts 
 that offer, inclusive. 
 [(d) The Fund shall pay over to the claimant that portion of any 
 interest the Fund recovers, pursuant to subsection (c)(1) and (2)(A), 
 for the period from the date upon which the claim of the claimant 
 is presented to the defendant to the date upon which the claimant 
 is paid by the Fund, inclusive, less the period from the date upon 
 which the Fund offers to the claimant the amount finally paid to 
 the claimant in satisfaction of the claim to the date upon which the 
 claimant accepts such offer, inclusive. 
 
 [(e) The Fund is entitled to recover for all interest and costs 
 specified in subsection (c) of this section without regard to any limi- 
 tation of liability to which the defendant may otherwise be entitled 
 under this title. 
 
 [jurisdiction and venue 
 
 [Sec. 309. (a) The United States district courts shall have origi- 
 nal and exclusive jurisdiction of all controversies arising under this 
 title, without regard to the citizenship of the parties or the amount 
 in controversy. 
 
 [(b) Venue shall lie in any district wherein the injury com- 
 plained of occurred, or wherein the defendant resides, may be 
 found, or has his principal office. For the purposes of this section, 
 the Fund shall reside in the District of Columbia. 
 
 [relationship to other law 
 
 [Sec. 310. (a) Any person who receives compensation for dam- 
 ages or removal costs pursuant to this title shall be precluded from 
 recovering compensation for the same damages or removal costs 
 pursuant to any other State or Federal law. Any person who re- 
 ceives compensation for damages or removal costs pursuant to any 
 other State or Federal law shall be precluded from receiving com- 
 pensation for the same damages or removal costs under this title. 
 
 [(b) No owner or operator of an offshore facility or vessel who 
 establishes and maintains evidence of financial responsibility in ac- 
 cordance with this section shall be required under any State law, 
 rule, or regulation to establish any other evidence of financial re- 
 sponsibility in connection with liability for the discharge of oil 
 from such offshore facility or vessel. Evidence of compliance with 
 the financial responsibility requirement of this section shall be ac- 
 cepted by a State in lieu of any other requirement of financial re- 
 sponsibility imposed by such State in connection with liability for 
 the discharge of oil from such offshore facility or vessel. 
 
 [(c) Except as otherwise provided in this title, this title shall not 
 be interpreted to preempt the field of liability or to preclude any 
 State from imposing additional requirements or liability for any 
 
93 
 
 discharge of oil resulting in damages or removal costs within the 
 jurisdiction of such State. 
 
 [prohibition 
 
 [Sec. 311. The discharge of oil from any offshore facility or 
 vessel, in quantities which the President under section 311(b) of the 
 Federal Water Pollution Control Act (33 U.S.C. 1321(b)) determines 
 to be harmful, is prohibited. 
 
 [penalties 
 
 [Sec. 312. (a)(1) Any person who fails to comply with the require- 
 ments of section 305 of this title, the regulations promulgated 
 thereunder, or any denial or detention order, shall be subject to a 
 civil penalty of not to exceed $10,000. 
 
 [(2) The civil penalty described in paragraph (1) of this subsec- 
 tion may be assessed and compromised by the President or his des- 
 ignee, in connection with section 305(a)(1) of this title, and by the 
 Secretary, in connection with section 305(a)(3) and section 305(b) of 
 this title. No penalty shall be assessed until notice and an opportu- 
 nity for hearing on the alleged violation have been given. In deter- 
 mining the amount of the penalty or the amount agreed upon in 
 compromise, the demonstrated good faith of the party shall be 
 taken into consideration. 
 
 [(3) At the request of the official assessing a penalty under this 
 subsection, the Attorney General may bring an action in the name 
 of the Fund to collect the penalty assessed. 
 
 [(b) Any person in charge who is subject to the jurisdiction of 
 the United States and who fails to give the notification by section 
 306(a) of this title shall, upon conviction, be fined not more than 
 $10,000 or imprisoned for not more than one year, or both. 
 
 [authorization of appropriations 
 
 [Sec. 313. (a) There is authorized to be appropriated for the ad- 
 ministration of this title $10,000,000 for the fiscal year ending Sep- 
 tember 30, 1979, $5,000,000 for the fiscal year ending September 30, 
 1980, and $5,000,000 for the fiscal year ending September 30, 1981. 
 
 [(b) There are also authorized to be appropriated to the Fund, 
 from time to time, such amounts as may be necessary to carry out 
 the purposes of the applicable provisions of this title, including the 
 entering into contracts, any disbursements of funds, and the issur- 
 ance of notes or other obligations pursuant to section 302(f) of this 
 title. 
 
 [(c) Notwithstanding any other provision of this title, the au- 
 thority to make contracts, to make disbursements, to issue notes or 
 other obligations pursuant to section 302(f) of this title, to charge 
 and collect fees pursuant to section 302(d) of this title, or to exer- 
 cise any other spending authority shall be effective only to the 
 extent provided, without fiscal year limitation, in appropriation 
 Acts enacted after the date of enactment of this title. 
 
 [annual report 
 
 [Sec. 314. Within six months after the end of each fiscal year, 
 the Secretary shall submit to the Congress (1) a report on the ad- 
 
94 
 
 ministration of the Fund during such fiscal year, and (2) his recom- 
 mendations for such legislative changes as he finds necessary or 
 appropriate to improve the management of the Fund and the ad- 
 ministration of the liability provisions of this title. 
 
 EFFECTIVE DATE 
 
 [Sec. 315. (a) This section, subsection (e) of section 304, subsec- 
 tion (d) of section 305, and all provisions of this title authorizing 
 the delegation of authority or the promulgation of regulations shall 
 be effective on the date of enactment of this title. 
 
 [(b) All other provisions of this title, and rules and regulations 
 promulgated pursuant to such provisions, shall be effective on the 
 one hundred and eightieth day after the date of enactment of this 
 title.] 
 
 O 
 
UNIVERSITY OF ILLINOIS URBANA 
 
 DOC. Y1. 1+8:101-242+ C001 V001 
 
 OIL POLLUTION PREVENTION, RESPONSE, LIAB 
 
 0112 026046257