CONGRESSIONAL RECORD -- SENATE
January 22, 1969
Page 1404
S. 544 -- INTRODUCTION OF THE WATER QUALITY IMPROVEMENT ACT OF 1969
Mr. MUSKIE. Mr. President, on January 16, 1969, the Department of the Interior transmitted water pollution legislation to the Congress.
In essence this legislation is similar to the Water Quality Improvement Act of 1968, but the Department has proposed certain modifications. The sections of this bill which relate to sewage from vessels, oil pollution, and research are similar to S. 7, the Water Quality Improvement Act of 1969, which I introduced with 24 other Senators last week.
Additionally, this bill contains a revised method for financing construction of municipal waste treatment works. Under this proposal a $50 million revolving fund would be established in the Treasury which would buy tax-exempt municipal waste treatment bonds and re-sell securities in an amount sufficient to cover both the Federal and local share of a project's cost. The municipality would retire its share of these securities on an annual basis at the tax-exempt interest rate.
The Federal share of a project's cost and any additional interest costs associated with the difference between the taxable rate of Federal bonds and the tax-exempt rate of municipal bonds would be repaid by annual appropriations.
Mr. President, I anticipate that additional legislation on financing waste treatment works will be introduced later this session. The Subcommittee on Air and Water Pollution will hold hearings on this bill as well as other proposals, including those the new administration may wish to present. In the interim, other sections of the bill which I am introducing today will be considered during the hearings on S. 7, which will be held on February 3, 4, and 5.
I ask unanimous consent that the text of this bill and the covering letter from Assistant Secretary Max N. Edwards be included in the RECORD at this point.
The VICE PRESIDENT. The bill will be received and appropriately referred; and, without objection, the bill and letter will be printed in the RECORD.
The bill (S. 544) to amend the Federal Water Pollution Control Act, as amended, and for other purposes, introduced by Mr. MUSKIE, was received, read twice by its title, referred to the Committee on Public Works, and ordered to be printed in the RECORD, as follows:
S. 544
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Water Quality Improvement Act of 1969."
SEC. 2. Section 8 of the Federal Water Pollution Control Act, as amended (33 U.S.C. 466e), is amended
(1) by inserting in subsection (a) after the words "grants to" a comma and the words "or enter into contracts with,";
(2) by inserting after the word "grant" in clauses (1), (3), (4), and (5) of subsection (b) the words "or contract"; and after the word "grantee" in clause (3) of subsection (b) the words "or contractee";
(3) by inserting after the word "appropriated" wherever it appears in the second and third sentences of subsection (c) the words "for grants under subsection (b) of this section";
(4) by amending subsection (d) to read as follows:
"(d) For the purpose of making grants there is authorized to be appropriated $700,000,000 for the fiscal year ending June 30, 1969. For the purposes of making grants and payments under this section, there is authorized to be appropriated $1,000,000,000 for the fiscal year ending June 30, 1970, and $1,250,000,000 for the fiscal year ending June 30, 1971. At least 50 per centum of the first $100,000,000 so appropriated for each fiscal year beginning on or after July 1, 1965, shall be used for grants for the construction of treatment works servicing municipalities of one hundred and twenty-five thousand population or under. There is authorized to be appropriated such sums as may be necessary to make payments after June 30,1971, on contracts entered into under subsection (f) of this section. Sums appropriated to carry out this section shall remain available until expended.";
(5) by redesignating subsections (f) and (g). as (g) and (h) ;
(6) by inserting after "subsection (b) of this section" in the first sentence of redesignated subsection (g) a comma and the following: "or the amount contracted for under subsection (f) of this section," and by striking out in such sentence "the amount of such grant" and inserting in lieu thereof “such amount";
(7) by inserting after "grants" in redesignated subsection (h) the following: "or contracts"; and
(8) by inserting a new subsection after subsection (e) to read as follows:
"(f) (1) For the purpose of this subsection, the term 'contracting party' means a State, municipality, or intermunicipal or interstate agency.
“(2) For the purpose of providing an additional method of financing treatment works under this section, there is hereby established within the Treasury of the United States the Water Quality Improvement Revolving Fund (hereinafter referred to as the "Fund"). There is authorized to be appropriated to the Fund $50,000,000 to purchase obligations under paragraph (4) of this subsection. All sums received by the Secretary (A) from a contracting party in connection with the purchase of such obligations, and (B) sums received in connection with the sale of such obligations under this subsection shall be deposited into the Fund. All sums covered into the Fund pursuant to this paragraph shall remain available until expended to carry out the provisions of this subsection.
"(3) From time to time, and at least at the close of each fiscal year, the Secretary shall pay from the Fund into the Treasury as miscellaneous receipts interest on the cumulative amount of appropriations made available to the Fund, less the average undisbursed cash balance in the Fund during such year. The rate of such interest shall be determined by the Secretary of the Treasury, taking into consideration the average market yield during the month preceding each fiscal year on outstanding Treasury obligations with remaining periods to maturity comparable to the average maturity of obligations purchased by the Fund. Such interest payments may be deferred with the approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. If at any time the Secretary determines that moneys in the Fund exceed the present and any reasonably prospective future requirements of the Fund, such excess may be transferred to the general fund of the Treasury.
"(4) The Secretary may enter into contracts, in accordance with the provisions of this subsection, with any contracting party (A) to purchase the obligations issued by such party to finance the cost of constructing treatment works, including the Federal share thereof, and (B) to make principal and interest payments on the obligations purchased by him, within limits to be established in appropriation Acts for fiscal years 1970 and 1971, over a period of not to exceed forty years to cover the Federal share of the construction costs of such treatment works. Obligations purchased by the Secretary under this paragraph shall have a maximum repayment period of not to exceed forty years and shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of such obligations, adjusted to the nearest one-eighth of 1 per centum, less not to exceed 1 per centum per annum as determined by the Secretary. No obligation shall be purchased unless the Secretary determines that there is reasonable assurance of repayment and that the amount of the obligation together with other funds available is adequate to assure completion of the project. Any contract entered into by the Secretary with a contracting party shall require that all revenue bond obligations issued by such party covering the Federal and non-Federal share of such works under such contract shall be sold to the Secretary.
"(5) The Federal share for treatment works with respect to which a contract is entered into under paragraph (4) of this subsection shall be the same percentage as would be the case if a grant were being made for such works under subsections (b) and (g) of this section.
"(6) In order to be eligible for a contract under paragraph (4) of this subsection, each contracting party shall meet the applicable requirements of subsection (b) of this section, the first sentence of subsection (c) of this section, and the provisions of this subsection. Each contract shall include such additional terms and conditions as the Secretary deems appropriate.
"(7) The Secretary is authorized to sell, with the approval of the Secretary of the Treasury, the obligations purchased under paragraph (4) of this subsection with agreements for the guarantee thereof, or the obligations may be held in the Fund and collected in accordance with their terms. The Secretary is authorized to make payments to cover the difference in interest between the rates at which such obligations are purchased and the rates at which they are sold under this subsection. The interest on any obligation sold by the Secretary shall not be tax exempt for income purposes under any Federal law. Any such guarantee agreement executed by the Secretary hereunder shall be an obligation supported by the full faith and credit of the United States, and shall be incontestable except for fraud or material misrepresentation of which the holder has actual knowledge. In connection with obligations guaranteed under this subsection, the Secretary may take liens running to the United States notwithstanding the fact that the notes evidencing such obligations may be held by lenders other than the United States. Notes evidencing such obligations shall be freely assignable, but the Secretary shall not be bound by any such assignment until notice thereof is given to, and acknowledged by, him. The Secretary is authorized to make agreements with respect to servicing obligations held or guaranteed by him under this subsection and purchasing such guaranteed obligations on such terms and conditions as he may prescribe.
"(8) The Secretary may issue notes to the Secretary of the Treasury when necessary to obtain funds to make timely payments in the event of default under any guaranty, or to meet his responsibilities under any purchase agreement, made pursuant to this subsection. The form, denomination, maturities, and other terms and conditions of such notes shall be prescribed by the Secretary with the approval of the Secretary of the Treasury. Each note shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable maturities adjusted to the nearest one-eighth of 1 per centum. The Secretary of the Treasury is authorized and directed to purchase any notes of the Secretary issued hereunder and for that purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act are extended to include the purchase of notes issued by the Secretary. All redemptions, purchase, and sales by the Secretary of the Treasury of such notes shall be treated as public debt transactions of the United States.
"(9) The total sum actually appropriated to the Fund to purchase any obligation under paragraph (4) of this subsection and the Federal principal sum of obligations purchased under said paragraph and the amount actually appropriated for grants under subsection (b) of this section, for fiscal years 1970 and 1971 shall not exceed the sums authorized to be appropriated for such years under subsection (d) of this section. Fifty percent of the principal sum available for contracts under this subsection for each fiscal year beginning after June 30, 1969, shall be allotted by the Secretary in accordance with the ratio that the population of each State bears to the population of all the States. Fifty percent of such principal sum shall be allotted by the Secretary to any State meeting on June 30 of the preceding fiscal year the requirements of subsection (b) (7) of this section for a 50 per centum Federal share in accordance with the ratio that the population of each such State bears to the population of all the States meeting said requirements. Sums allotted to a State which are not obligated within six months following the end of the fiscal year for which they were allotted shall be reallotted in the same manner, except that sums allotted to a State in fiscal year 1970 shall be available for obligation therein for eighteen months from the effective date of this subsection.
"(10) In entering into any contract under this subsection, first priority in each State shall be given for treatment works (A) included in waste treatment systems servicing an area of fifty thousand people or more, (B) contributing to the development of a regional collection and treatment system, or (C) financed by a system of charges designed to cover, to the extent practicable, construction costs of such works and operating and maintenance costs."
SEC. 3. Sections 17 and 18 of the Federal Water Pollution Control Act, as amended, are hereby repealed. Section 19 of the Federal Water Pollution Control Act, as amended, is redesignated as section 20. Sections 11 through 16 of the Federal Water Pollution Control Act, as amended, are redesignated as sections 14 through 19. After section 10 of the Federal Water Pollution Control Act, as amended (33 U.S.C. 4668), there are hereby inserted three new sections to read as follows:
"CONTROL OF SEWAGE FROM VESSELS
"SEC. 11. (a) For the purpose of this section, the term
"(1) 'new vessel' includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on the navigable waters of the United States, the construction of which is initiated after promulgation of standards and regulations under this section;
"(2) 'existing vessel' includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on the navigable waters of the United States, the construction of which is initiated before promulgation of standards and regulations under this section;
"(3) 'public vessel' means a vessel owned or bareboat chartered and operated by the United States, by a State or political subdivision thereof, or by a foreign nation or by a political subdivision thereof, except where such vessel is engaged in commercial activities;
"(4) 'United States' includes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands;
"(5) 'marine sanitation device' means any equipment for installation on board a vessel which is designed to receive, retain, treat, or discharge sewage;
"(6) 'sewage' means human body wastes and the wastes from toilets and other receptacles intended to receive or retain body wastes;
"(7) 'manufacturer' means any person engaged in the manufacturing, assembling, or importation of marine sanitation devices or of vessels having installed on board such devices;
"(8) 'person' means an individual, partnership, firm, corporation, or association, but does not include an individual on board a public vessel;
"(9) 'discharge' means any spilling, leaking, pumping, pouring, emitting, emptying, or dumping.
"(b) (1) As soon as possible after the enactment of this section, the Secretary, after consultation with the Secretary of the department in which the Coast Guard is operating, and after giving appropriate consideration to the economic costs involved, and within the limits of available technology, shall promulgate Federal standards of performance for marine sanitation devices (hereinafter referred to as 'standards') which shall be designed to prevent the discharge of untreated or inadequately treated sewage into or upon the navigable waters of the United States from new vessels and existing vessels, except vessels not equipped at any time with installed toilet facilities. Such standards shall be consistent with maritime safety and the marine and navigation laws and regulations and shall be coordinated with the regulations issued under this subsection by the Secretary of the department in which the Coast Guard is operating. The Secretary of the department in which the Coast Guard is operating shall promulgate regulations, which are consistent with standards promulgated under this subsection and with maritime safety and the marine and navigation laws and regulations, governing the design, construction, installation, and operation of any marine sanitation device on board such vessels.
"(2) Any existing vessel equipped with a device or devices installed pursuant to the requirements of a State or foreign nation statute or regulation or recommended levels of control set forth in the Handbook on Sanitation and Vessel Construction (Public Health Service, 1965) prior to the promulgation of the initial standards and regulations required by this section shall be deemed in compliance with this section until such time as the device or devices are replaced or are found not to be in compliance with such State or foreign nation statute, regulation, or recommended level.
"(c) (1) Initial standards and regulations under this section shall become effective for new vessels two years after promulgation; but not earlier than December 31, 1971, and for existing vessels five years after promulgation. Revisions of standards and regulations shall be effective upon promulgation, unless another effective date is specified.
"(2) The Secretary and the Secretary of the department in which the Coast Guard is operating with regard to their respective regulatory authority established by this section, may distinguish among classes, types, and sizes of vessels as well as between new and existing vessels, and may waive applicability of standards and regulations as necessary or appropriate for such classes, types, and sizes of vessels, and, upon application, for individual vessels.
"(d) The provisions of this section and the standards and regulations promulgated thereunder apply to vessels owned and operated by the United States unless the Secretary of Defense finds that compliance would not be in the interest of national security. With respect to vessels owned and operated by the Department of Defense, regulations under subsection (b) and certifications under subsection (g) (2) of this section shall be promulgated and issued by the Secretary of Defense and not by the Secretary of the department in which the Coast Guard is operating.
"(e) Before the standards and regulations under this section are promulgated, the Secretary and the Secretary of the department in which the Coast Guard is operating shall consult with the Secretary of State; the Secretary of Health, Education, and Welfare; the Secretary of Defense; the Secretary of the Treasury; the Secretary of Commerce; other interested Federal agencies; and the States and industries interested; and otherwise comply with the requirements of section 553 of title 5 of the United States Code.
"(f) After the effective date of the initial standards and regulations promulgated under this section, no State or political subdivision thereof shall adopt or enforce any statute or regulation of such State or political subdivision with respect to the design, manufacture, or installation of any marine sanitation device on any vessel subject to the provisions of this section, except that nothing in this section shall be construed to affect or modify the authority or jurisdiction of any State to prohibit discharges of sewage whether treated or not from a vessel within all or part of the waters of such State.
"(g) (1) No manufacturer of a marine sanitation device shall sell, offer for sale, or introduce or deliver for introduction in interstate commerce, or import into the United States for Sale or resale any marine sanitation device manufactured after the effective date of the standards and regulations promulgated under this section unless such device is in all material respects substantially the same as a test device certified under this subsection.
"(2) Upon application of the manufacturer, the Secretary of the department in which the Coast Guard is operating shall so certify a marine sanitation device if he determines, in accordance with the provisions of this paragraph, that it meets the appropriate standards and regulations promulgated under this section. The Secretary of the department in which the Coast Guard is operating shall test or require such testing of the device in accordance with procedures set forth by the Secretary as to standards of performance and for such other purposes as may be appropriate. The Secretary, upon notification of the results of such tests, shall determine if such results are in accordance with the appropriate performance standards promulgated under this section and shall notify the Secretary of the department in which the Coast Guard is operating of his determination. Upon receipt of such notification the Secretary of the department in which the Coast Guard is operating, if he determines that the device is satisfactory from the standpoint of safety and any other requirements of maritime law or regulation, and after consideration of the design, installation, operation, material, or other appropriate factors. shall certify the device. Any device manufactured by such manufacturer which is in all material respects substantially the same as the certified test device shall be deemed to be in conformity with the appropriate standards and regulations established under this section.
"(3) Every manufacturer shall establish and maintain such records, make such reports, and provide such information as the Secretary or the Secretary of the department in which the Coast Guard is operating may reasonably require to enable him to determine whether such manufacturer has acted or is acting in compliance with this section and regulations issued thereunder and shall, upon request of an officer or employee duly designated by the Secretary or the Secretary of the department in which the Coast Guard is operating, permit such officer or employee at reasonable times to have access to and copy such records. All information reported to, or otherwise obtained by, the Secretary or the Secretary of the department in which the Coast Guard is operating or their representatives pursuant to this subsection which contains or relates to a trade secret or other matter referred to in section 1905 of title 18 of the United States Code shall be considered confidential for the purpose of that section, except that such information may be disclosed to other officers or employees concerned with carrying out this section.
"(h) After the effective date of standards and regulations promulgated under this section, it shall be unlawful
"(1) for the manufacturer of any vessel subject to such standards and regulations to manufacture for sale, to sell or offer for sale, or to distribute for sale or resale any such vessel unless it is equipped with a marine sanitation device which is in all material respects substantially the same as the appropriate test device certified pursuant to this section;
"(2) for any person, prior to the sale or delivery of a vessel subject to such standards and regulations to the ultimate purchaser, wrongfully to remove or render inoperative any certified marine sanitation device or element of design of such device installed in such vessel;
"(3) for any person to fail or refuse to permit access to or copying of records or to fail to make reports or provide information required under this section; and
"(4) for a vessel subject to such standards and regulations to discharge sewage into or upon the navigable waters of the United States, except with the use of a marine sanitation device certified pursuant to this section.
"(f) The district courts of the United States shall have jurisdiction to restrain violations of subsection (h) (1) through (3) of this section. Actions to restrain such violations shall be brought by, and in, the name of the United States. In case of contumacy or refusal to obey a subpoena served upon any person under this subsection, the district court of the United States for any district in which such person is found or resides or transacts business, upon application by the United States and after notice to such person, shall have jurisdiction to issue an order requiring such person to appear to give testimony or to appear and produce documents, and any failure to obey such order of the court may be punished by such court as a contempt thereof.
" (j) Any person who violates clauses (1) or (2) of subsection (h) of this section shall be liable to a civil penalty of not more than $5,000 for each violation. Any person who violates clause (4) of subsection (h) of this section shall be liable to a civil penalty of not more than $2,000 for each violation. Each violation shall be a separate offense. The Secretary of the department in which the Coast Guard is operating may assess and compromise any such penalty. In determining the amount of the penalty, or the amount agreed upon in compromise, the gravity of the violation, and the demonstrated good faith of the person charged in attempting to achieve rapid compliance, after notification of a violation, shall be considered by said Secretary.
"(k) The provisions of this section shall be enforced by the Secretary of the department in which the Coast Guard is operating and he may utilize by agreement with or without reimbursement law enforcement officers or other personnel and facilities of the Secretary, other Federal agencies, or the States to carry out the provisions of this section.
"(1) Anyone authorized by the Secretary of the department in which the Coast Guard is operating to enforce the provisions of this section may, except as to public vessels, (1) board and inspect any vessel upon the navigable waters of the United States, (2) with or without a warrant arrest any person who violates the provisions of this section or any regulation issued thereunder in his presence or view, and (3) execute any warrant or other process issued by an officer or court of competent jurisdiction.
"(m) In the case of Guam, actions arising under this section may be brought in the district court of Guam, and in the case of the Virgin Islands such actions may be brought in the district court of the Virgin Islands. In the case of American Samoa and the Trust Territory of the Pacific Islands, such actions may be brought in the District Court of the United States for the District of Hawaii and such court shall have jurisdiction of such actions.
"CONTROL OF POLLUTION BY OIL AND OTHER MATTER
"Definitions
"SEC. 12. (a) For the purposes of this section, the term
" (1) 'oil' means oil of any kind or in any form, including, but not limited to, petroleum, fuel oil, sludge, and oil refuse, but does not include oil mixed with other matter;
"(2) 'matter' means any substance of any description or origin, other than sewage, oil, and dredged spoil which is discharged in substantial quantities, but does not include byproduct material, source material, and special nuclear material as defined in the Atomic Energy Act of 1954 (42 U.S.C. 2013).
"(3) 'sewage' means human body wastes and the wastes from toilets and other receptacles intended to receive or retain body wastes;
"(4) 'discharge' means any spilling, leaking, pumping, pouring, emitting, emptying, or dumping;
"(5) 'remove or removal' refers to the taking of reasonable and appropriate measures to mitigate the potential damage of the discharge of oil or matter to the public health or welfare, including, but not limited to, fish, shellfish, wildlife, shorelines, and beaches:
"(6) 'vessel' includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water;
"(7) 'public vessel' means a vessel owned or bareboat chartered and operated by the United States, or by a State or political subdivision thereof, or by a foreign nation or political subdivision thereof, except where such vessel is engaged in commercial activities;
"(8) ‘United States' includes the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands;
"(9) 'owner or operator' means any person owning, operating, or chartering by demise, a vessel;
"(10) 'person' includes an individual, firm, corporation, association, or a partnership, except individuals on board public vessels; and
"(11) ‘contiguous zone' means the entire zone established or to be established by the United States under article 24 of the Convention on the Territorial Sea and the Contiguous Zone.
"Notice–
"(b) Any person who discharges or permits or causes or contributes to the discharge of oil or matter in substantial quantities from any source into or upon the navigable waters of the United States or adjoining shorelines or beaches, or into or upon the waters of the contiguous zone because such oil or matter threatens to pollute or contribute to the pollution of the territory or the territorial sea of the United States, shall immediately notify the appropriate delegate of the President of such discharge. Any such person who knowingly fails to notify immediately such delegate of any such discharge of oil or matter into or upon such waters, shorelines, or beaches, shall, upon conviction, be fined not more than $5,000, or imprisoned far not more than one year, or both.
"Control of oil discharged from vessels; civil penalty–
"(c) (1) Except in case of an emergency imperiling life, or an act of war or sabotage, or an unavoidable accident, collision, or stranding, or except as otherwise permitted by regulations issued by the Secretary under this section, or except where otherwise not prohibited in the contiguous zone under the provisions of Article IV of the International Convention for the Prevention of Pollution of the Sea by Oil, 1954, as amended, any owner or operator who, either directly or through any person, whether or not his servant or agent, concerned in the operation, navigation, or management of the vessel, discharges or permits the discharge of oil from a vessel into or upon the navigable waters of the United States or adjoining shorelines and beaches of the United States, or into or upon the waters of the contiguous zone because such oil threatens to pollute or contribute to the pollution of the territory or the territorial sea of the United States, shall be subject to the penalties provided in this subsection.
"(2) Any owner or operator who, or any vessel, other than a public vessel, which discharges oil in violation of paragraph (1) of this subsection shall be assessed a civil penalty by the Secretary of not more than $10,000 for each offense. Each violation is a separate offense. Any such civil penalty may be compromised by the Secretary. In determining the amount of the penalty; or the amount agreed upon in compromise, the appropriateness of such penalty to the size of the business of the owner or operator of the vessel charged, the effect on the owner or operator's ability to continue in business, and the gravity of the violation, shall be considered by the Secretary. The district director of customs at the port or place of departure from the United States shall withhold at the request of the 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 subject to the foregoing penalty. Clearance may be granted in such cases upon the filing of a bond or other surety satisfactory to the Secretary. Such penalty shall constitute a maritime lien on such vessel which may be recovered by action in rem in the district court of the United States for any district within which such vessel may be found.
"Removal of discharged oil or matter by the United States–
"(d) Whenever advice is received of any discharge of oil or matter into or upon any waters, shorelines, or beaches, the United States may remove or arrange for the removal thereof in accordance with the regulations prescribed under subsection (g) of this section when, in the judgment of the Secretary, such oil or matter presents an actual or threatened pollution hazard to the public health or welfare of the United States, including, but not limited to, fish, shellfish, and wildlife, or to public or private shorelines and beaches in the United States, unless other adequate arrangements for removal of such oil or matter have been made as required by subsections (e) (1) or (f) (1) of this section.
"Removal of discharged oil or matter by owner or operator of a vessel–
"(e) (1) The owner or operator of any vessel who, either directly or through any person, whether or not his servant or agent, concerned in the operation, navigation, or management of the vessel, willfully or negligently discharges or permits or causes or contributes to the discharge of oil or matter into or upon the navigable waters of the United States or adjoining shorelines or beaches or into or upon the waters of the contiguous zone because oil or matter threatens to pollute or contribute to the pollution of the territory or the territorial sea of the United States, shall immediately remove such oil or matter from such waters, shorelines, and beaches. If the United States removes the oil or matter, such owner or operator, and, as appropriate, the vessel shall be liable to the United States for the full amount of the costs reasonably incurred under this subsection for the removal of such oil or matter, except that such aggregate liability for the cost of removal shall not exceed $15,000,000 or $450 per gross registered ton of such offending vessel, whichever is the lesser amount. The district director of customs at the port or place of departure from the United States shall withhold at the request of the Secretary the clearance required by section 4197 of the Revised Statutes of the United States, as amended (46 U.S.C. 91)' of a vessel, other than a public vessel, liable for such costs until such costs are paid or until a bond or other surety satisfactory to the Secretary is posted. Such costs shall constitute a maritime lien on such vessel which may be recovered in an action in rem in the district court of the United States for any district within which such vessel may be found.
"(2) In any action instituted by the United States under paragraph (1) of this subsection, evidence of a discharge of oil or matter from a vessel shall constitute a prima facie case of liability to the United States on the part of the owner or operator thereof and the burden of rebutting such prima facie case shall be upon such owner or operator. The United States shall also have cause of action under paragraph (1) of this subsection against any owner or operator of a vessel whose willful act or negligence is found to have caused or contributed to the discharge of oil or matter from a vessel involved in a collision or other casualty. The burden of rebutting the prima facie case of liability Which the United States shall have against a vessel or the owner or operator thereof from which the oil or matter is discharged shall in no way affect any rights which such owner or operator may have against any other vessel or owner or operator or other persons whose willful act or negligence may in any way have caused or contributed to such discharge.
"Removal of oil and matter discharged from onshore or offshore facilities–
"(f) (1) Any person subject to the jurisdiction of the United States who owns or operates an onshore or offshore facility of any kind, other than a facility owned or operated by the United States, or a State or a political subdivision thereof who either directly or through any other person, whether or not his servant or agent, concerned in the operation or management of such facility, willfully or negligently discharges or permits or causes or contributes to the discharge of oil or matter into or upon the navigable waters of the United States or adjoining shorelines or beaches, or into or upon the waters of the contiguous zone, or into or upon the waters beyond such zone, shall immediately remove such oil or matter from such waters, shorelines, and beaches. If the United States removes the oil or matter, such person shall be liable to the United States for the full amount of the costs reasonably incurred for the removal of such oil or matter, except that such aggregate liability for the cost of removal of such oil or matter shall not exceed $15,000,000.
"(2) In any action instituted by the United States under this subsection, evidence of a discharge of oil or matter from an onshore or offshore facility of any kind, other than a vessel, shall constitute a prima facie case of liability to the United States on the part of any person who owns or operates such facility and the burden of rebutting such prima facie case shall be upon such person.
"Regulations governing the removal of discharged oil or matter by anyone–
"(g) Within 60 days after the effective date of this section and from time to time thereafter
"(1) The Secretary shall issue regulations, in consultation with the Secretary of the department in which the Coast Guard is operating and consistent with maritime safety and with marine and navigation laws, establishing criteria in removing discharged oil and matter, including criteria relative to the methods and means of removal, from waters, shorelines, and beaches; and
"(2) The Secretary of the department in which the Coast Guard is operating shall issue regulations, in consultation with the Secretary, establishing procedures, methods, and equipment (A) to implement the regulations of the Secretary relative to removing discharged oil and matter, and (B) to prevent discharges of oil and matter from vessels.
"General provisions–
"(h) (1) There is hereby authorized to be appropriated to a revolving fund to be established in the Treasury not to exceed $15,000,000 to carry out the provisions of subsection (d) of this section. Any funds received by the United States under this section shall also be deposited in said fund for such purposes, except that such funds shall be available to reimburse a State or political subdivision thereof that assists in the removal of any discharged oil or matter. All sums appropriated to, or deposited in, said fund shall remain available until expended.
"(2) For the purpose of insuring the efficient and economic removal of any discharged oil or matter under subsection (d) of this section, the President shall, within ninety days after the effective date of this section and from time to time thereafter, delegate to the Secretary, the Secretary of the department in which the Coast Guard is operating, the Secretary of Defense, and the heads of such other agencies as may be appropriate, all or part of the responsibility under subsection (d) of this section for removing discharged oil or matter, in accordance with any national contingency plan or revision thereof, approved by the President, establishing procedures to be followed in removing such oil or matter. Any moneys in the fund established by this subsection shall be available to such Federal agencies to effectuate such removal. Each such agency, in order to avoid duplication of effort, shall, whenever practicable, utilize with or without reimbursement the personnel, services, and facilities of other Federal agencies and of State agencies.
"(3) After regulations are promulgated under subsection (g) of this section, the removal of any discharged oil or matter by anyone under this section shall be carried out in accordance with such regulations.
"(4) The Secretary, in consultation with the Secretary of the department in which the Coast Guard is operating and consistent with maritime safety and with marine and navigation laws and regulations, may issue regulations authorizing the discharge of oil or matter from a vessel in quantities, under conditions, and at times and locations deemed appropriate by him, after taking into consideration various factors such as the effect of such discharge on applicable water quality standards, recreation, and fish and wildlife.
"(5) The provisions of subsection (c) of this section and the regulations issued under subsection (g) of this section shall be enforced by the Secretary of the department in which the Coast Guard is operating. The Secretary of the department in which the Coast Guard is operating may utilize by agreement, with or without reimbursement, the personnel, services, and facilities of any other Federal agency or State agency in carrying out these provisions and regulations.
"(6) Anyone authorized by the Secretary of the department in which the Coast Guard is operating to enforce the provisions of this section may, except as to public vessels, (A) board and inspect any vessel upon the navigable waters of the United States or the waters of the contiguous zone, (B) with or without a warrant arrest any person who violates the provisions of this section or any regulation issued thereunder in his presence or view, and (C) execute any warrant or other process issued by an officer or court of competent jurisdiction.
"(7) In the case of Guam, actions arising under this section may be brought in the district court of Guam, and in the case of the Virgin Islands such actions may be brought in the district court of the Virgin Islands. In the case of American Samoa and the Trust Territory of the Pacific Islands, such actions may be brought in the District Court of the United States for the District of Hawaii and such court shall have jurisdiction of such actions.
"(8) Nothing in this section shall be construed as authorizing the Secretary or the Secretary of the department in which the Coast Guard is operating to regulate the operations or construction of any onshore or offshore facility, or as affecting or modifying any other existing authority of either Secretary relative to such facilities under this Act or any other provision of law.
"Study by Secretary of Transportation–
"(i) The Secretary of Transportation, in consultation with the Secretaries of Interior, State, Treasury, Commerce, and other interested Federal agencies, shall conduct a study of the need for, and the desirability of, establishing a system of requiring vessels using the navigable waters of the United States and the waters of the contiguous zone to give evidence that such vessels have adequate financial capability within appropriate limitations to reimburse the United States in accordance with the provisions of this section for the removal of discharged oil and to pay damage claims covering private, real, or personal property damaged or destroyed by such discharged oil. In carrying out this study, the Secretary of Transportation shall seek detailed information relative to the economic effects of such a system on the merchant marine industry, and the advice and recommendations of representatives of the merchant marine, oil, and insurance industries, labor, and other national and international organizations relative to the need for, and desirability of, such a system. The Secretary of Transportation shall submit a report thereon, together with recommendations thereon, to the Congress, through the President, by July 1, 1970.
"AREA ACID AND OTHER MINE WATER POLLUTION CONTROL DEMONSTRATIONS
"SEC. 13.(a) The Secretary, in cooperation with other Federal agencies, is authorized to enter into agreements with any State or interstate agency to carry out one or more projects to demonstrate methods for the elimination or control, within all or part of a watershed, of acid or other mine water pollution resulting from active or abandoned mines. Such projects shall demonstrate the engineering and economic feasibility and practicality of various abatement techniques which will contribute substantially to effective and practical methods of acid or other mine water pollution elimination or control.
"(b) The Secretary, in selecting watersheds for the purposes of this section, shall (1) require such feasibility studies as he deems appropriate, (2) give preference to areas which have the greatest present or potential value for public use for recreation, fish and wildlife, water supply, and other public uses, and (3) be satisfied that the project area will not be affected adversely by the influx of acid or other mine water pollution from nearby sources.
"(c) Federal participation in such projects shall be subject to the conditions–
"(1) that the State or interstate agency shall pay not less than 25 per centum of the actual project costs which payment may be in any form, including, but not limited to, land or interests therein that is needed for the project, personal property, or services, the value of which shall be determined by the Secretary; and
"(2) that the State or interstate agency shall provide legal and practical protection to the project area to insure against any activities which will cause future acid or other mine water pollution.
"(d) There is authorized to be appropriated $15,000,000 to carry out the provisions of this section, which sum shall be available until expended. No more than 25 per centum of the total funds appropriated under this section in any one year shall be granted to any one State."
SEC. 4. Redesignated section 14 of the Federal Water Pollution Control Act, as amended, is amended to read as follows:
"COOPERATION BY ALL FEDERAL AGENCIES IN THE CONTROL OF POLLUTION
"SEC. 14. (a) Each Federal agency having jurisdiction over any real property or facility of any kind shall, within available appropriations and consistent with the interests of the United States, cooperate with the Secretary and the appropriate State water pollution control agency to insure compliance with applicable water quality standards and the purposes of this Act in the administration of such property or facility. In his summary of any conference pursuant to section 10(d) (4) of this Act, the Secretary shall include references to any discharges allegedly contributing to pollution from any such Federal property or facility, and shall transmit a copy of such summary to the head of the Federal agency having jurisdiction of such property or facility. Notice of any hearing pursuant to section 10 (f) of this Act involving any pollution alleged to be affected by any such discharges shall also be given to the Federal agency having jurisdiction over the property or facility involved, and the findings and recommendations of the Hearing Board conducting such hearing shall include references to any such discharges which are contributing to the pollution found by such Board.
"(b) Whenever an application is filed with any Federal department or agency to authorize or assist by license, lease, or permit any activity which discharges or may discharge matter of any kind into any waters, such agency or department shall receive from the Secretary a report and recommendations, prepared in consultation with the appropriate State or interstate water pollution control agency or agencies, for the purpose of insuring compliance by such activity with applicable water quality standards in effect for such waters. Upon receipt of such report and recommendations, such department or agency shall prescribe such measures as it deems appropriate, in accordance with the procedures established by such agency to consider such applications, to insure compliance at all times with the applicable water quality standards. Nothing in this subsection shall be construed as affecting the authority of the Secretary or any State or interstate agency in requiring the compliance of such standards under this Act or any other provision of law."
SEC. 5. Section 5 of the Federal Water Pollution Control Act, as amended (33 U.S.C. 4660), is amended
(a) by redesignating subsections (g) and (h) as (k) and (1);
(b) by inserting after subsection (f) two new subsections to read as follows:
“(h) The Secretary is authorized to enter into contracts with, or make grants to, public or private agencies and organizations and individuals for the purpose of developing and demonstrating new or improved methods for the prevention, removal, and control of natural or manmade pollution in lakes, including the undesirable effects of nutrients and vegetation.
"(f) In carrying out the provisions of subsections (a) through (j) of this section relating to the conduct by the Secretary of demonstration projects and the development of field laboratories and research facilities, the Secretary may acquire land and interests therein by purchase, with appropriated or donated funds, by donation, or by exchange for acquired or public lands under his jurisdiction which he classifies as suitable for disposition. The values of the properties so exchanged either shall be approximately equal, or if they are not approximately equal, the values shall be equalized by the payment of cash to the grantor or to the Secretary as the circumstances require.
"(c) by changing in redesignated subsection (1) (4) the words "and June 30, 1969;' to "June 30, 1969, and June 30, 1970'"; and (d) by amending the first sentence of redesignated subsection (m) to read as follows:
"(m) There is authorized to be appropriated to carry out this section, other than subsection (l), not to exceed $65,000,000 for the fiscal year ending June 30, 1969, and such sums as may be necessary for the fiscal years ending June 30, 1970, and June 30, 1971."
SEC. 6. Section 6(e) of the Federal Water Pollution Control Act, as amended (33 U.S.C. 4660-1) is amended to read as follows:
"(e) For the purposes of this section there are authorized to be appropriated
"(1) for the fiscal year ending June 30, 1969, the sum of $20,000,000 annually and for the fiscal years ending June 30, 1970 and June 30, 1971, such sums as may be necessary for the purposes set forth in subsections (a) and (b) of this section, including contracts pursuant to such subsections for such purposes;
"(2) for the fiscal year ending June 30, 1969, the sum of $20,000,000 annually and for the fiscal years ending June 30, 1970, and June 30, 1971' such sums as may be necessary for the purpose set forth in clause (2) of subsection (a) ; and
"(3) for the fiscal year ending June 30, .1969, the sum of $20,000,000 annually and for the fiscal year ending June 30, 1970, and June 30, 1971, such sums as maybe necessary for the purpose set forth in subsection (b)."
SEC, 7. Redesignated section 17 of the Federal Water pollution Control Act, as amended, is amended by deleting the following: "the Oil Pollution Act, 1924, or".
SEC. 8. The Oil Pollution Act, 1924 (43 Stat. 604), as amended (80 Stat. 1246-1252), is hereby repealed.
The letter presented by Mr. MUSKIE is as follows:
U.S. DEPARTMENT OF THE INTERIOR,
OFFICE OF THE SECRETARY,
Washington, D.C.,
January 16, 1969.
Hon. HUBERT H. HUMPHREY,
President of the Senate,
Washington, D.C.
DEAR Mr. PRESIDENT: Enclosed is a draft of a proposed bill, "To amend the Federal Water Pollution Control Act, as amended, and for other purposes."
We recommend that this draft bill be referred to the appropriate committee for consideration and that it be enacted.
Last year, the Administration proposed legislation providing a new and additional method of financing the construction of waste treatment works to meet the nation’s water pollution control needs; an improved and strengthened authority to prevent oil spills and to clean up discharged oil and other polluting substances; and a program of controlling sewage from vessels. The legislation, however, failed final passage in the last hours of the 90th Congress. With the new Congress, we now have an opportunity to finish the legislative work started and nearly completed last year. I hope that it can be done quickly as the need in all of these areas is great. In addition, legislation is needed to extend the Department's water pollution research authorities which expire June 30, 1969.
Let me highlight some of the features of the enclosed proposal that differ materially from the version considered by both Houses last year.
FINANCING OF WASTE TREATMENT WORKS
The enclosed proposal provides a new and additional method of financing the construction of waste treatment works during fiscal years 1970 and 1971.
As the Congress will recall, last year these financing provisions were embroiled in a considerable discussion over the question of whether bonds issued to cover the cost of construction of treatment works by local public bodies should be taxable or tax exempt. We proposed a principal and interest payment to cover the Federal share, plus an interest subsidy. We required that the entire bond issue be taxable. This proposal met strong opposition from various public officials at the State and local level.
Both the House and Senate versions of S. 3206 in the 90th Congress included a provision which authorize the issuance of long-term contracts to finance the Federal share of the treatment works with no payment of the interest on any obligations issued by the State or local public body. State or local public bodies could, under that proposal, issue tax-exempt bonds.
The problem with that approach is that the States and local public bodies would in reality be receiving a substantially lesser grant because they would have to make the interest payments on the obligations issued to finance the Federal share. We estimated last year that a 50 percent Federal share grant would, in fact, be reduced in value to about 30 percent. Others have suggested that this value would be even lower. Thus, we believe that the approach followed in S. 3206 is undesirable from the standpoint of the States and local government.
We want to avoid this undesirable consequence and the taxable vs. nontaxable issue, while providing, at the same time, a reasonable means of achieving the goal of meeting the Federal financial commitment for fiscal years 1970 and 1971. We believe that the enclosed proposal accomplishes this.
Under this proposal, Interior would enter into contracts to purchase the obligations of the contracting party issued to finance the contracting party's share and the Federal share of the costs of waste treatment works constructed with Federal assistance. Although bonds do not achieve tax-exempt status until the exemption is actually exercised by a taxpayer, we would recognize the status of the community bonds as being eligible for tax exemption. The purchased obligations would then become assets of the Federal Government. The Federal Government would guarantee them and sell them as taxable obligations. Under this approach, no precedent would be created requiring municipalities to issue taxable bonds for the Federal share.
This legislation Would provide authority for the Secretary to make principal and interest payments on the Federal share and to make up the difference between the interest costs on the guaranteed taxable bonds sold and the interest received from localities which would be at a rate comparable to the rate on tax-exempt obligations.
The proposal would authorize a $50 million revolving fund which would enable the Secretary to purchase the localities' obligations and hold them for brief periods, pending sale to private investors.
The Department plans to begin discussions shortly with representatives of the investment banking community in order to determine the most effective mechanism for marketing these guaranteed obligations.
Before entering into any contracts, the total principal sum available for the principal share of contracts will be established in appropriation acts for fiscal years 1970 through 1971. Fifty percent of the principal sum available for contracts will be allotted to the States by the same formula as funds appropriated for grants in excess of the first $100 million are allotted – that is, by population. This sum will be available to the States for obligation for the fiscal year it was allotted plus 6 months. In fiscal year 1969, however, this sum will be available for obligation for 18 months from the date of enactment of this legislation.
The remaining fifty percent of the principal sum would be allotted to States having treatment works eligible under section 8(b) (7) of the Act for fifty percent grants – that is, States that pay at least twenty-five percent of the costs of treatment works and establish enforceable water quality standards for the waters in which such works discharge. We believe that this approach will encourage more States to establish an aid program for their communities.
At present, twenty jurisdictions could benefit from this approach. We believe more will follow this year. These States now cannot pay the full Federal share and spread their Federal allotments over as many projects as States which do not provide financial aid to municipalities. The States to date that have provided State aid programs are, in many cases, the ones having the greatest backlog of needed treatment works.
In entering into contracts under this section, priority will be given in each State to treatment works serving 50,000 people or more, or contributing to a regional collection and treatment system, or having an adequate charge system. The objective, of course, is to funnel more of the Federal money to areas in each State where the pollution problems are greater – the more populous areas.
The proposal would not in any way affect the present reimbursement provisions found in section 8(c) of the Act.
Also, it would not authorize the use of contract financing to pay for treatment works constructed since June 1966 with little or no Federal grant assistance under this Act. The rationale is that the objective of the contract approach is to build new and needed treatment works. It is not designed as a method of financing works already constructed or under construction. The States must look to the existing reimbursement features of the Act for these payments.
We fervently hope that this approach effectively resolves the very difficult problems raised last year and will be fully supported by the States and local communities.
OIL AND OTHER MATTER POLLUTION CONTROL
The House version of S. 3206 did not provide authority for the Secretary of the Interior to clean up discharges of oil or other matter from onshore or offshore installations and to recover the cost thereof from the owners or operators of these installations. The enclosed proposal would provide such cleanup authority. The reasons for doing so are quite simple.
As a spill occurs in an inland waterway or even within the contiguous zone or territorial sea, the damage can be just as great whether it occurs from a vessel or another type of facility. The source of the oil release makes no difference. All that the public knows is that there has been a spill and it is damaging property and resources. They will want it removed. They will not understand why we can remove oil discharged from a vessel but not oil discharged from a tank farm or oil rig.
Three examples illustrate the problem:
1. Last November, a 12-mile long concentrated sludge moved down the Allegheny River in Pennsylvania closing water supply systems, power plants and industries, and leaving over 1 million fish dead. The source was from a 30-year old sludge treatment lagoon at Brain, Pennsylvania, plant of the American International Refining Company, according to State Health Department officials. The company was fixing a leak when the lagoon embankment collapsed, dumping about 3,000 gallons of oil sludge and refining chemicals into Bear Creek, a tributary of the Allegheny (see November 7, 1968, edition of Engineering News).
2. Last October, about 10,000 gallons of #2 diesel fuel was discharged from a fueling hose cut by a passing train at the Thorndaly yards of the Penn-Central Railroad, near Downington, Pennsylvania, and flowed into a ditch leading to Beaver Creek and then into Brandywine Creek. Downington uses Beaver Creek as its raw water source and their water treatment plant had to shut down on October 27 because of the ingress of oil.
3. The other day a break in a 22-inch high pressure pipeline carrying crude oil resulted in a discharge of oil estimated to be as great as 700,000 gallons at Lima, Ohio. The oil flowed over the surface of streets into sewers and was carried down to the sewage treatment plant. The sewage treatment plant caught fire and was badly damaged. There were numerous explosions in the sewer system. The oil flowing through both the storm and sanitary sewage systems flowed into the Ottowa Creek in the Lake Erie drainage basin. The nearest downstream municipal water intake is some 60 miles with an estimated travel time of about 7 days under existing weather conditions. A variety of booms were erected across the creek and the oil is being vacuumed from the water surface and placed in temporary storage pits.
No Federal agency, including this Department, has adequate authority to clean up discharges of oil and other matter from these types of facilities. It should be emphasized that we are only talking about the cleanup or removal of discharged oil and matter and we are not attempting by this legislation to provide criminal or civil penalties or any regulatory scheme which would be applicable to onshore or offshore facilities. The 1899 Refuse Act (33 U.S.C. 407) now prohibits the discharge of refuse matter into United States waters from vessels and onshore and offshore facilities.
The enclosed proposal does not provide criminal penalties for violation of the prohibitions against oil discharges from vessels. Rather it provides civil penalties against the vessel of up to $10,000 where a discharge of oil occurs in violation of the general prohibition against discharges from vessels. The exceptions to the general prohibition would, of course, apply here. Some of the exceptions are: Act of God, war, or sabotage, or unavoidable accidents, collisions, or strandings, or cases of emergency imperiling life. Another exception is where the Secretary by regulation issued permits to discharge oil under controlled conditions. Where the discharge occurs under one of these exceptions there will be no penalty, but the discharger still has the obligation under the section to notify the Secretary or his delegate of the discharge and to clean it up where the discharge is due to negligence or a willful act.
The civil penalty would be assessed by the Secretary and is not dependent on any finding of negligence or wilfulness because of the exceptions. The provision is patterned after similar penalty provisions in the Natural Gas Pipeline Safety Act of 1968.
The proposal would require that, where an oil discharge or matter discharge occurs, anyone in charge of the vessel or facility from which the oil is discharged has an obligation to tell us so that steps may be taken to correct the situation. Early warning of the discharge is probably the most important factor in the handling of these discharges. The earlier the warning, the more chance we have to insure that the discharge can be contained in order to prevent or minimize the potential damage to our natural resources, shorelines, beaches, and other public and private facilities.
Once word is received of the discharge, the United States may take immediate steps to undertake cleanup action. This does not mean, however, that the discharger is relieved of the responsibility to clean up the discharge. He still has the duty to act quickly.
In addition, the proposed legislation increases the liability limit found in S. 3206 for vessels from $10 million or $67 per gross registered ton, whichever is the lesser, to $15 million or $450 per gross registered ton, whichever is the lesser. Our experience in removing discharged oil indicates quite clearly that the actual costs of cleanup are substantially more than $67 per gross registered ton.
The $67 figure was recommended by industry on the basis of the 1957 Brussels Convention relative to the Limitation of the Liability of the Owners of Seagoing Ships. The United States, however, has never ratified or adhered to that Convention.
The SS Ocean Eagle discharged at Puerto Rico some 3,000,000 gallons of oil in two releases, 1,000,000 gallons and 2,000,000. A substantial, but unmeasured portion of the second release was blown out to sea and did not require cleanup. Cleanup costs for the incident are in excess of $1,500,000.
A very recent spill of oil in San Diego Bay was "cleaned up" using dispersants. Eighty-six thousand gallons of dispersants were applied to the 86,000 gallons of No. 6 fuel oil spilled. Dispersant cost plus application costs appear to be near $500 per gallon. Dispersant manufacturers recommend applications of dispersant to oils at a ratio of 1 part dispersant to about 5 parts oil under ideal conditions. This recommended ratio may be as low as 1:10 for light petroleum fractions and in practice may approach 1:1 for weathered crude oils and heavy fuel oils. Dispersant prices are in the range of $4-5.00 per gallon and the cost of application will raise the cost to $5.00 or more per gallon. Under ideal conditions, the cost of dispersing oil would be in the range of $1.00 per gallon or $250 per ton of oil discharged.
Since a gross registered ton equals approximately 450 gallons of oil, the cost would be, under ideal conditions, $450 per gross registered ton of the vessel. Under critical conditions, the costs would be higher; in the case of the San Diego Bay spill, the costs would be $2,250 per gross registered ton.
The insurance industry, when testifying on last year's legislation that provided for absolute liability in the case of cleanup, supported a limitation of $10 to $15 million. The costs of the Torrey Canyon cleanup were in excess of $15 million and the measures were considered less than adequate. The enclosed proposal, like the House version of last year, makes the owner and operator liable only where there is negligence or willful misconduct in discharging the oil.
In our view, if the United States acts to remove discharged oil or matter because of a negligent or willful act on the part of an owner or operator or his agent, the United States should be able to recover most, if not all, of its costs. We should not establish the precedent of subsidizing an industry for its negligence or wilful misconduct.
The definition of "matter" has been revised in order to avoid the problem of waiting for the Secretary to determine if the discharge presented "an imminent and substantial hazard" before taking action to remove it, and to exclude certain material now covered by the Atomic Energy Act. In the latter case, the AEC advises that it has adequate authority to require its licensees to take measures to prevent damage from discharges of these materials.
CONTROL OF POLLUTION FROM FEDERALLY LICENSED, LEASED, OR PERMITTED ACTIVITIES
The Water Quality Act of 1965 provides one method of insuring compliance with water quality standards, namely an abatement action when there is a discharge that reduces the quality of water below the standards. It is a remedy that will be pursued where pollution exists by this Department and by the States. But it is an after-the-fact remedy. It is not the preventive medicine that should be practiced. Where we have other effective means to insure compliance, we should use them and, if necessary, strengthen them.
One very effective means is the Federal lease, license, and permit. This is true in the case of all pollutants. The review process attendant to the issuance of a Federal lease, license, or permit by any agency affords an excellent opportunity to examine prior to the development of the project the impact on the environment and to prevent or minimize any damage to the environment that might occur from the project.
The licensing agency can require the installation of the pollution control measures which are then found to be necessary to protect water quality and water uses before the project is constructed and before it is operated. The licensee then is required by the licensing agency to comply on a continuing basis with the conditions of his license.
The proposal would require that the Federal agency which is considering a lease, license, or permit application, obtain the advice of the Secretary of the Interior to determine if the applicable water quality standards will be met. The Secretary would consult with the interested state water pollution control agencies and seek their comments which would be transmitted to the licensing agency. The licensing, etc., agency would then, upon receipt of the recommendations from the Secretary, include in the license such conditions as the agency considers appropriate to insure compliance. This does not give the Secretary a veto over the issuance of the license, etc. Rather, it provides a mechanism for insuring that the pollution problem will be combated prior to the construction and operation of the proposed project. In appropriate cases, the Secretary, as well as the States, could intervene in any proceeding relative to the water quality standards issue, if necessary.
This proposal will carry out our recommendations in my statement before the Senate Committee on Public Works of November 6, 1968, relative to the problem of thermal pollution.
RESEARCH, STUDIES, AND DEMONSTRATIONS
The proposal would extend the research, etc., provisions of the Act an additional 2 years to June 30, 1971, at the level of appropriations for fiscal year 1969. The appropriation authorization for these sections terminates on June 30, 1969.