October 14, 1978
Page 37980
OIL POLLUTION LIABILITY AND COMPENSATION LEGISLATION
Mr. MUSKIE. Mr. President, on Friday, October 13, 1978, I introduced an amendment to H.R. 6803, the Oil Pollution Liability and Compensation Act. That amendment was also later discussed in my floor remarks which begin on page 37877 of the RECORD of October 14, 1978.
Unfortunately, in neither case was the actual text of the amendment printed.
In order to correct the permanent RECORD, I ask that the text of that amendment be printed in full at this point in the RECORD.
The text follows:
AMENDMENT
In lieu of the matter proposed to be inserted by the House amendment to the amendment of the Senate, insert the following:
That this Act may be cited as the "Oil Pollution Liability and Compensation Act of 1978".
DEFINITIONS
SEC. 2. For the purposes of this Act—
(1) the terms "oil", "discharge", "vessel", "public vessel", "United States", "owner or operator", "remove" or "removal", "contiguous zone", "onshore facility", "barrel", "hazardous substance", and "inland oil barge" shall have the meaning provided in section 311 (a) of the Federal Water Pollution Control Act;
(2) the terms "State", "person", "navigable waters", and "territorial seas"shall have the meaning provided in section 502 of the Federal Water Pollution Control Act;
(3) the term "act of God" means an unanticipated grave natural disaster or other natural phenomenon of an exceptional, inevitable, and irresistible character the effects of which could not have been prevented or avoided by the exercise of due care or foresight;
(4) the terms "claim" means a request, made in writing for a sum certain, for compensation for damages or removal costs resulting from a discharge of oil or a hazardous substance;
(5) the term "claimant" means any person who presents a claim for compensation under this Act;
(6) the term "damages" means damages for economic loss or the loss of natural resources as specified in section 3 (a) (2) of this Act;
(7) the term "Fund" means the Oil Spill Liability Fund established under section 4 of this Act;
(8) the term "guarantor" means any person, other than the owner or operator, who provides evidence of financial responsibility for an owner or operator under this Act or section 311(p) of the Federal Water Pollution Control Act:
(9) the term "natural resources" includes land, fish, wildlife, biota, air, water, and other such resources belonging to, managed by, held in trust by, appertaining to, or otherwise controlled by the United States (including the resources of the fishery conservation zone established by the Fishery Conservation and Management Act of 1976), any State or local government, or any foreign government;
(10) the term "refinery" means a terminal which receives oil for the purpose of refinement; and
(11) the term "terminal" means any permanently situated onshore or offshore facility which receives oil in bulk directly from any vessel, offshore production facility,offshore port facility, or any pipeline including the pipeline constructed under the Trans-Alaska Pipeline Authorization Act.
LIABILITY FOR DAMAGES AND REMOVAL COSTS
SEC. 3. (a) Except where an owner or operator of a vessel or an onshore or offshore facility can prove that a discharge was caused solely by (1) an act of God, (ii) an act of war, (iii) negligence on the part of the United States Government, or (iv) an act or omission of a third party without regard to whether any such act or omission was or was not negligent, and notwithstanding any other provision or rule of law, such owner or operator of a vessel or an onshore or offshore facility from which oil is discharged in violation of section 311(b) (3) of the Federal Water Pollution Control Act shall be jointly, severally, and strictly liable for—
(1) (A) all costs of removal incurred by the United States Government or a State under subsection (c), (d), (e), or (f) (4) of section 311 of the Federal Water Pollution Control Act or under the Intervention on the High Seas Act or section 18 of the DeepwaterPort Act of 1974, and
(B) any other costs or expenses incurred by any person to remove oil as the terms "remove" or "removal" are defined in section 311(a) (8) of the Federal Water Pollution Control Act; and
(2) all damages for economic loss or loss of natural resources resulting from such a discharge, including:
(A) any injury to, destruction of, or loss of any real or personal property;
(B) any loss of use of real or personal property;
(C) any injury to, destruction of, or loss of natural resources, including the reasonable costs of assessing such injury, destruction, or loss;
(D) any loss of use of any natural resources, without regard to the ownership or management of such resources;
(E) any loss of income or profits or impairment of earning capacity resulting from injury to or destruction of real or personal property or natural resources, without regard to the ownership of such property or resources; and
(F) any direct or indirect loss of tax, royalty, rental, or net profits share revenue by the Federal Government or any State or political subdivision thereof, for a period of not to exceed one year.
(b) In the case of an injury to, destruction of, or loss of natural resources under subsection (a) (2) (C) of this section, liability shall be to the United States Government and to any State for natural resources within the State or belonging to, managed by, controlled by, or appertaining to such State. The President, or the authorized representative of any State, shall act on behalf of the public as trustee of such natural resources to recover for such damages. Sums recovered shall be available for use to restore, rehabilitate, or acquire the equivalent of such natural resources by the appropriate agencies of the Federal Government or the State government, but the measure of such damages shall not be limited by the sums which can be used to restore or replace such resources.
(c) (1) The liability of an owner or operator of a vessel, or an onshore or offshore facility for damages and removal costs under this section, and inclusive of the limits of liability established under section 311(f) of the Federal Water Pollution Control Act, for each discharge or incident shall not exceed—
(A) $300 per gross ton or $500,000, whichever is greater, of any vessel carrying oil in bulk or in commercial quantities as cargo;
(B) $300 per gross ton of any other vessel;
(C) the total of all costs of removal under subsection (a) (1) of this section plus $50,000,000 for any offshore facility operated under the authority of or subject to the Outer Continental Shelf Lands Act;
(D) $50,000,000 for any deepwater port subject to the Deepwater Port Act of 1974 (including the liability of the licensee for a discharge from any vessel moored at such port, in any case where $50,000,000 exceeds $300 per gross ton of such vessel);
(E) $50,000,000 for any other onshore or offshore facility; or
(F) $150 per gross ton or $250,000, whichever is greater, of any inland oil barge.
(2) Notwithstanding the limitations of paragraph (1) of this subsection, the liability of the owner or operator of a vessel or an onshore or offshore facility under subsection (a) of this section shall be the full and total damages and removal costs not offset by any removal costs incurred on behalf of such owner or operator, if (A) the discharge of oil was the result of willful misconduct or gross negligence within the privity and knowledge of the owner or operator or of a gross or willful violation (within the privity and knowledge of the owner or operator) of applicable safety, construction, or operating standards or regulations; or (B) the owner or operator fails or refuses to provide all reasonable cooperation and assistance requested by a responsible official in connection with removal activities under the contingency plan established under section 311(c) of the Federal Water Pollution Control Act.
(3) Notwithstanding the limitations of paragraph (1) of this subsection or the exceptions or defenses of subsection (a) of this section, all costs of removal incurred by the United States Government or any State or local official or agency in connection with a discharge of oil from any offshore facility operated under the authority of or subject to the Outer Continental Shelf Lands Act or a vessel carrying oil as cargo from such a facility shall be borne by the owners and operator of the offshore facility or vessel from which the discharge occurred.
(4) If the President determines that a level of liability established by paragraph (1) above or a level of financial responsibility required by section 6 of this Act will have either a significant adverse impact on small business enterprises or a significant anticompetitive impact, the President may adjust such levels of liability or financial responsibility by rule or regulation as follows:
(A) The limit of liability or financial responsibility for facilities subject to subparagraph 3(c) (1) (D), to no less than $35,000,000;
(B) The level of liability for facilities subject to subparagraph 3(c) (1) (C) to the total of all removal costs under subsection 3(a) (1) and an amount for all damages to no less than $35,000,000, or the level of financial responsibility for such facilities to no less than $35,000,000.
Before publishing said proposed rule or regulation the President shall notify the Committee on Environment and Public Works and the Committee on Commerce, Science, and Transportation of the United States Senate and the Committee on Merchant Marine and Fisheries and the Committee on Public Works and Transportation of the United States House of Representatives of his intention to propose said rule or regulation. The notice shall state with particularity the President's justification for said rule or regulation and shall include a statement of the views of the Federal Trade Commission on whether the liability or financial responsibility limit sought to be changed has significant anticompetitive or small business impacts.
(d) In any case where the owner or operator of a vessel or an onshore or offshore facility can prove that a discharge was caused solely by an act or omission of a third party (or solely by such an act or omission in combination with an act of God, an act of war, or negligence on the part of the United States Government), such third party shall be liable under this section as if such third party were the owner or operator of a vessel or onshore or offshore facility from which the discharge actually occurred. Where the owner or operator of a vessel carrying oil as cargo or an onshore or offshore facility which handles or stores oil in bulk or commercial quantities, from which oil is discharged, alleges that such discharge was caused solely by an act or omission of a third party, such owner or operator shall promptly pay to the United States Government, and any other claimant, the costs of removal or damages claimed and shall be entitled by subrogation to all rights of the United States Government or other claimant to recover such costs of removal or damages from such third party under this subsection.
(e) The President is authorized to establish by regulation, with respect to any class or category of onshore or offshore facility subject to subsection (c) (1) (E) of this section, a maximum limit of liability under this section of less than $50,000,000 but not less than $8,000,000.
(f) A discharge of oil in or on the territorial sea, internal waters, or adjacent shoreline of a foreign nation shall be deemed to be a discharge in violation of section 311(b) (3) of the Federal Water Pollution Control Act for purposes of this section, and claims for compensation for damages and removal costs may be made under this Act by any citizen of a foreign nation or by any foreign nation, if such damages or removal costs, resulted from a discharge of oil, or threat of a discharge of oil, from—
(1) a facility located in the United States or subject to the jurisdiction of the United States;
(2) a vessel incident occurring in the navigable waters of the United States; or
(3) a vessel carrying oil as cargo between two ports subject to the jurisdiction of the United States.
(g) The owner or operator of a vessel shall be liable in accordance with this section and section 311 of the Federal Water Pollution Control Act and as provided under section 7 of this Act notwithstanding any provision of the Act of March 3, 1851 (48 U.S.C. 183ff).
LIABILITY FUND ESTABLISHMENT
SEC. 4. (a) (1) There is hereby established in the Treasury of the United States an Oil Spill Liability Fund, not to exceed $200,000,000, except that such limitation shall be increased to the extent necessary to permit any moneys recovered or collected which are referred to in subsection (b) (2) of this section being paid into such Fund. The Fund shall be administered by the President and the Secretary of the Treasury, as specified in this section. The Fund may sue and be sued in its own name.
(b) The Fund shall be constituted from—
(1) all fees collected pursuant to subsection (c) ;
(2) all moneys recovered on behalf of the Fund under section 5.
(c) (1) Beginning ninety days after the enactment of this Act, the Secretary of the Treasury shall collect from the owners of refineries receiving crude oil, and from the owners of terminals receiving any oil for export from or entry into the United States whether for import or transfer to a foreign country, a fee, not to exceed 3 cents per barrel of oil received. Oil upon which a fee has been levied under this paragraph shall not be subject to subsequent levy hereunder. The person who owns such oil shall be responsible for assuring the payment of such fee and shall be obligated to reimburse the owner of such refinery or terminal, as the case may be, the full amount of the fee levied on the oil of that person and paid by the owner of the refinery or terminal.
(2) The Secretary of the Treasury, after consulting with appropriate Federal agencies, may promulgate rules and regulations relating to the collection of the fees authorized by paragraph (1) and, from time to time, the modification thereof. Modifications shall become effective on the date specified therein, but no earlier than the ninetieth day following the date the modifying regulation is published in the Federal Register. Any modification of the fee shall be designed to assure that the Fund is maintained at a level not less than $150,000,000 and not more than $200,000,000. No regulation that modifies fees, nor any modification of such a regulation, whether or not in effect, may be stayed by any court pending completion of judicial review of that regulation or modification.
(3) (A) Any person who fails to collect or pay fees as required by the regulations promulgated under paragraph (2) shall be liable for a civil penalty not to exceed $10,000, to be assessed by the Secretary of the Treasury, in addition to the fees required to be collected or paid and the interest on those fees at the rate the fees would have earned if collected or paid when due and invested in special obligations of the United States in accordance with subsection (d) (2). Upon the failure of any person so liable to pay any penalty, fee, or interest upon demand, the Attorney General shall, at the request of the Secretary of the Treasury 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 regulation promulgated under this subsection 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 persons from whom fees are to be collected pursuant to paragraph (1) of this subsection, and the Secretary of the Treasury and the Comptroller General of the United States shall have access to such required material for the purpose of audit and examination.
(d) (1) The President shall determine the level of funding required 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), in interest-bearing special obligations of the United States. Such special obligations may be redeemed at any time in accordance with the terms of the special issue and pursuant to regulations 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 credited to and form a part of the Fund.
(e) If at any time the moneys available in the fund are insufficient to meet the obligations of the Fund, the President shall issue to the Secretary of the Treasury notes or other obligations in the forms and denominations, bearing the interest rates and maturities and subject to such terms and conditions as may be prescribed by the Secretary of the Treasury. Redemption of these notes or obligations shall be made by the President from moneys in the Fund. These notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding marketable obligations of comparable maturity. The Secretary of the Treasury shall purchase any note or other obligations issued hereunder and, for that purpose, 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 securities may be issued under that Act are extended to include any purchase of these notes or 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 by the Secretary of the 'Treasury of these notes or other obligations shall be treated as public debt transactions of the United States. The authority of the President to issue notes or other obligations under this subsection shall be subject to such amounts as are provided in appropriation acts.
(f) The President shall establish an interagency task force to investigate all appropriate aspects of establishing a Hazardous Substances Liability Fund and of requiring a fee on hazardous substances to be collected and placed in such a Hazardous Substances Liability Fund, and the appropriate level at which such fund shall be maintained. Such task force shall also consider whether liability of a discharger or compensation from such a Fund ought to be provided for personal injury resulting from discharges of oil or hazardous substances. The report of such investigation; together with legislative recommendations, shall be submitted to the Congress not later than eighteen months after the enactment of this Act.
(g) The Administrator of the Environmental Protection Agency, the Commandant of the Coast Guard, and the Comptroller General shall undertake a study of possible incentives to safer operation of vessels and facilities to reduce the potential of discharges of oil or hazardous substances, and generally of measures to prevent or avoid the occurrence of such discharges. Such study shall address (1) the feasibility of a variable fee for replenishment of the Fund under subsection (c) of this section which takes into account the likelihood of a discharge and the operational experience of individuals or classes, and (2) whether current practices in the insurance and banking industries provide any incentives or disincentives to reducing the potential for discharges of oil or hazardous substances. Such study shall be conducted in consultation with other appropriate Federal and State agencies, the affected industries, and other interested parties. A first report of such study, together with legislative recommendations, if any, shall be submitted to the Congress not later than July 1, 1979, and as appropriate thereafter.
USE OF LIABILITY FUND
SEC. 5. (a) The President shall use the money in the Fund for the following purposes:
(1) payment of any claim for costs of removal or damages in excess of the amount for which the owner or operator of the vessel or onshore or offshore facility from which oil is discharged is liable under section 3 of this Act;
(2) payment of any claim for costs of removal or damages where the source of the discharge of oil is not known or cannot be identified;
(3) payment of any claim for costs of removal or damages resulting from a discharge of oil in any case where the claim has not been satisfied in accordance with subsection (b) of this section;
(4) all removal costs or expenses or other costs of carrying out the national contingency plan established under section 311(c) of the Federal Water Pollution Control Act, including removal costs incurred by any person and approved under such national contingency plan resulting from a discharge of oil;
(5) subject to such amounts as are provided in appropriation Acts, the costs of (A) providing equipment and similar capital expenses, related to the purposes of this Act and section 311 of the Federal Water Pollution Control Act, and (B) not to exceed $5,000,000 per fiscal year, establishing and maintaining damage assessment capability, for any Federal agency involved in strike forces, emergency task forces, or other response teams under such national contingency plan;
(6) the Costs of assessing both short-term and long-term injury to, destruction of, or loss of any natural resources resulting from a discharge of oil;
(7) the costs of Federal or State efforts in the restoration, rehabilitation, or replacement or acquiring the equivalent of any natural resources injured, destroyed, or lost as a result of any discharge of oil;
(8) reimbursement to any State for the payment of any claims for costs of removal or damages resulting from a discharge of oil payable under this Act which such State has paid with funds under the control of such State pursuant to the national contingency plan or to a delegation under subsection (b) of this section;
(9) subject to such amounts as are provided in appropriation Acts, not to exceed $10,000,000 per fiscal year, the costs of research related to the purposes of this Act and section 311 of the Federal Water Pollution Control Act, to be performed by the Federal agencies including the Environmental Protection Agency, the Fish and Wildlife Service, and the National Oceanic and Atmospheric Administration. Such research shall include, but not limited to (A) development and refinement of protocols to determine the type and extent of short- and long-term injury or loss of natural resources, (B) development and refinement of the best available procedures to identify the value of injured or lost resources, (C) laboratory or field research on the effects of oil and hazardous substances on living and nonliving resources that will provide additional scientific basis for damage assessments, and (D) research on minimizing the damage caused by spill control, dispersal and removal operations. Responsibility under the preceding sentence shall be assigned in accordance with the assessment responsibilities established under subsection (e) (2) of this section and officials responsible for such assessments shall be consulted before proposal of any research plan or appropriation request under the preceding sentence; and
(10) subject to such amounts as are provided in appropriation Acts, not to exceed $5,000,000 per fiscal year, the administrative and personnel. costs of administering the Fund and this Act.
(b) (1) The President is authorized to promulgate regulations designating one or more Federal officials who may obligate money in the Fund in accordance with subsection (a) of this section or portions thereof. The President is also authorized to delegate authority to obligate money in the Fund or to settle claims to officials of a State with an adequate program operating under a cooperative agreement with the Federal Government.
(2) The President is authorized to delegate the administration of his duties and authorities under this Act to the heads of those Federal departments, agencies, and instrumentalities which the President determines appropriate.
(3) (A) The President shall promulgate, and may from time to time amend, regulations for the presentation, filing, processing, settlement, and adjudication of claims for costs of removal or damages resulting from the discharge of oil under this Act.
(B) Whenever the President receives information from any person alleging they have incurred costs of removal or damages resulting from the discharge of oil for which the owner or operator of a vessel or onshore or offshore facility is liable under section 3 of this Act, he shall notify the owner, operator, and guarantor of such vessel or onshore or offshore facility of such allegation. Such owner or operator or guarantor, may, within five days after receiving such notification or presentation of any claim by a claimant, deny such allegations, or deny liability for damages for any of the reasons set forth in subsection (a) of section 3 of this Act.
(C) The owner and operator of any vessel or onshore or offshore facility from which oil has been discharged shall provide notice to all potential injured parties.
(D) All claims shall be presented in the first instance to the owner, operator, or guarantor of the vessel, or onshore or offshore facility from which oil has been discharged. In any case where the claim has not been satisfied in accordance with this paragraph, the claimant may elect to commence an action in court against such owner, operator, or guarantor or to present the claim for payment from the Fund under this section.
(E) No claim may be presented nor may an action be commenced for damages under this Act unless that claim is presented or action commenced within six years from the date of the discovery of the loss, whichever is later.
(c) (1) Payment of any claim by the Fund under this section shall be subject to the United States Government acquiring by subrogation all rights of the claimant to recover the costs of removal or damages from the person responsible for such discharge.
(2) Any person, including the Fund, who pays compensation pursuant to this Act to any claimant for damages or costs of removal resulting from a discharge of oil shall be subrogated to all rights, claims, and causes of action for such damages and costs of removal such claimant has under this Act or any other law.
(3) Upon request of the President, the Attorney General shall commence an action on behalf of the Fund to recover any compensation paid by the fund to any claimant pursuant to this Act, and, without regard to the limitation of liability provided for in section 3(c), all costs incurred by the Fund by reason of the claim, including interest, administrative and adjudicative costs, and attorney's fees. Such an action may be commenced against any owner, operator, or guarantor, or against any other person who is liable, pursuant to any law, to the compensated claimant or to the Fund, for the damages or costs of removal for which the compensation was paid.
(d) The Fund shall not be available to pay any claim for costs of removal or damages to the extent the discharge or the damages had been caused by the gross negligence or willful misconduct of that particular claimant.
(e) (1) (A) The President, acting through the Administrator of the National Oceanic and Atmospheric Administration, the Administrator of the Environmental Protection Agency, and the Director of the Fish and Wildlife Service, not later than two years after the enactment of this Act, shall promulgate regulations for the assessment of damages for injury to, destruction of, or loss of natural resources resulting from a discharge of oil or a hazardous substance, for the purpose of section 3(a) (2) (C) and (D) of this Act, section 5(a) (7) of this Act, and section 311(f) (4) and (5) of the Federal Water Pollution Control Act.
(B) Such regulations shall specify (i) standard procedures for simplified assessments requiring minimal field observation, including establishing measures of damages based on units of discharge or units of affected area, and (ii) alternative protocols for conducting assessments in individual cases to determine the type and extent of short and long term injury, destruction, or loss. Such regulations shall identify the best available procedures to determine such damages, including both direct and indirect injury, destruction, or loss and shall take into consideration factors including, but not limited to, replacement value, use value, and ability of the ecosystem or resource to recover.
(C) Such regulations shall be reviewed and revised as appropriate every two years.
(2) In accordance with such regulations, damages for injury to, destruction of, or loss of natural resources resulting from a discharge of oil or a hazardous substance, for the purposes of section 3(a) (2) (C) and (D) and section 5(a) (7) of this Act and section 311(f) (4) and (5) of the Federal Water Pollution Control Act, shall be assessed by (A) the Director of the Fish and Wildlife Service for living natural resources and their supporting ecosystems over which such Service has management or conservation authority, (B) the Administrator of the National Oceanic and Atmospheric Administration for other natural resources in the marine environment beyond the baseline of the territorial sea, and (C) the Administrator of the Environmental Protection Agency for all other natural resources. Such officials shall act for the President as trustee under section 3(b) of this Act and section 311(f) (5) of the Federal Water Pollution Control Act.
(3) Any determination or assessment of damages for injury to, destruction of, or loss of natural resources for the purposes of section 3(a) (2) (C) and (D) and section 5(a) (7) of this Act and section 311(f) (4) and (5) of the Federal Water Pollution Control Act shall have the force and effect of a rebuttable presumption on behalf of any claimant (including a trustee under section 3(b) of this Act or a Federal agency) in any judicial or adjudicatory administrative proceeding under this Act or section 311 of the Federal Water Pollution Control Act.
(f) 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 the Congress an interim report one year after the establishment of the Fund and a final report two years after the establishment of the Fund. The Comptroller 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.
(g) The Comptroller General, in consultation with the Administrator of the Environmental Protection Agency, shall investigate the necessity for providing assistance in emergencies caused by the release into the environment of any pollutant or other contaminant which presents or may reasonably be anticipated to present an imminent and substantial danger to the public health or welfare, and shall report to the Congress not later than April 1, 1979, on the results of such investigation together with a recommendation on the appropriate level and source of funding for section 504(b) of the Federal Water Pollution Control Act.
FINANCIAL RESPONSIBILITY
SEC. 6. (a) (1) The owner or operator of any vessel over three hundred gross tons (except a non-self-propelled barge that does not carry oil as cargo or fuel) using any port or place in the United States or the navigable waters or any offshore facility shall establish and maintain in accordance with section 311(p) of the Federal Water Pollution Control Act evidence of financial responsibility sufficient to meet the liability to which the owner or operator of such vessel could be subjected under section 3(c) (1) of this Act. The provisions of paragraphs (3),(4), (5), and (6) of such section 311(p) shall apply to any vessel, or the owner or operator thereof, subject to this section. This subsection shall take effect August 1, 1979.
(2) Any vessel subject to the requirements of this subsection which is found in the navigable waters without the necessary evidence of financial responsibility shall be subject to seizure by the United States of any oil or hazardous substances carried as cargo.
(b) (1) The owner or operator of any offshore facility shall establish and maintain evidence of financial responsibility sufficient to meet the liability to which the owner or operator of such facility could be subject under section 3(c) (1) of this Act or $50,000,000, whichever is less. Such evidence of financial responsibility shall be established according to regulations prescribed by the President and comparable to that required under section 311(p) of the Federal Water Pollution Control Act. This subsection shall take effect one hundred and eighty days after enactment of this Act.
(2) The owner or operator of any offshore facility subject to this subsection who fails to comply with this subsection or the regulations prescribed thereunder shall be subject to a fine of not more than $10,000 per day of violation.
STATE LAWS AND PROGRAMS
SEC. 7. (a) Except as specifically provided in subsection (b) (1) and (c) of this section, nothing in this Act shall be construed or interpreted as preempting any State from imposing any additional liability or requirements with respect to the discharge of oil or hazardous substances within such State.
(b) (1) Except as provided in this Act, no person may be required to contribute to any public fund, the purpose of which is to pay compensation in connection with any discharge of oil for—
(A) any injury to, destruction of, or loss of any real or personal property;
(B) any loss of use of real or personal property;
(C) payment of claims for damages resulting from any loss of use of any natural resources, without regard to the ownership or management of such resources;
(D) any loss of income or profits or impairment of earning capacity resulting from injury to or destruction of real or personal property or natural resources, without regard to the ownership of such property or resources; and
(E) any direct or indirect loss of tax, royalty, rental, or net profits share revenue by the Federal Government, or any State or political subdivision thereof, for a period of not to exceed one year.
(2) Nothing in this subsection shall preclude any State from imposing a tax or fee upon any person or upon oil for the purpose of supporting—
(A) the purchase and pre-positioning of cleanup and removal equipment, and training of personnel;
(B) removal costs and cleanup costs caused by discharges of oil or hazardous substances; and
(C) payment of claims under section 3(b) for damages resulting from any injury to, destruction of, or loss of natural resources, including the costs of assessing such injury, destruction or loss.
(c) Except as provided in this Act, no owner or operator of a facility or vessel who establishes and maintains evidence of financial responsibility in accordance with this Act shall be required under any State law, rule, or regulation to establish any other evidence of financial responsibility in connection with liability for the discharge of oil from such facility or vessel. Evidence of compliance with the financial responsibility requirements of this Act shall be accepted by a State in lieu of any other requirement of financial responsibility imposed by such State in connection with liability for the discharge of oil from such facility or vessel.
(d) Any person who receives compensation for damages pursuant to this Act 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 compensation for the same damages as provided in this Act.
CONFORMING AMENDMENTS
SEC. 8. (a) TRANS-ALASKA PIPELINE AUTHORIZATION ACT.— (1) Section 204(b) of the Trans-Alaska Pipeline Authorization Act (87 Stat. 586) is amended, in the first sentence—
(A) by inserting after the words "any area" the words "in the State of Alaska";
(B) by inserting after the words "any activities" the words "related to the Trans-Alaska Oil Pipeline"; and
(C) by inserting at the end of the subsection the following new sentence: "This subsection shall not apply to removal costs covered by the Oil Spill Liability Fund and Compensation Act of 1978".
(2) (A) Section 204(C) of the Trans-Alaska Pipeline Authorization Act (43 U.S.C.1653(c)) is hereby repealed. The Trans-Alaska Pipeline Liability Fund is hereby abolished. All assets of that fund, as of the effective date of this section, shall be transferred to the Oil Spill Liability Fund established by section 4 of this Act. The Oil Spill Liability Fund shall assume any and all liability incurred by the Trans-Alaska Pipeline Liability Fund under the terms of section 204(c) of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1653(c) ). The liabilities of the Trans- Alaska Pipeline Liability Fund assumed by the Oil Spill Liability Fund include any liabilities of the Officers or the Trustees of the Trans-Alaskan Pipeline Liability Fund to which they shall become subject in the execution of their duties as such, including any liabilities arising from the transfer of the assets of the Trans-Alaska Pipeline Liability Fund in accordance with the provisions of this Act, provided, however, that no Trustee or Officer shall be so indemnified for any claim or liability arising out of his own gross negligence or willful misconduct.
(B) The Secretary of the Interior shall certify to the Secretary of the Treasury the total amount of the claims outstanding against the Trans-Alaska Pipeline Liability Fund at the time the transfer of assets required under paragraph (A) is made. If the Secretary finds that—
(i) the total amount of the assets so transferred is greater than the total amount of the outstanding claims so certified, subject to subparagraph (D) of this paragraph the difference between the amount of the assets so transferred and the amount of the outstanding claims so certified shall constitute an advance payment toward payment of the fee due under section 4(c) of this Act on barrels of oil, and the Secretary may remit such fee until such time as the total amount of the fees so remitted equals the difference between the amount of the assets so transferred and the amount of the outstanding claims so certified; or
(ii) the total amount of the assets so transferred is less than the total amount of the outstanding claims so certified, the Secretary of the Treasury shall increase by 2 cents per barrel the fee imposed under section 4 on barrels of oil until such time as the total amount of the 2-cent-per- barrel increase so collected equals the difference between the amount of the certified outstanding claims and the amount of the transferred assets.
(C) In the event that the total amount of the actual claims settled is less than the total amount of the outstanding claims certified, the difference between these amounts shall be rebated by the Secretary of the Treasury directly to the operator of the trans-Alaska oil pipeline for payment, on a pro rata basis, to the owners of the oil at the time it was loaded on the vessel.
(D) If an owner of oil (as, that term is used in section 204(c)(5) of the Trans-Alaska Pipeline Authorization Act) who prior to enactment of this Act paid fees to the operator of the pipeline for transfer to the Trans-Alaska Pipeline Liability Fund receives the benefit of an advance payment under subparagraph (B) of this paragraph for the collection or payment of fees established under section 4(c) of this Act, such owner of oil shall compute, based upon accepted accounting procedures, what the oil production tax and what the royalty paid to the State of Alaska would have been had payments not been made to the Trans-Alaska Pipeline Liability Fund in the amount of fees remitted. The difference between the amounts so computed and amounts actually paid to the State of Alaska shall be paid by each such owner to the State of Alaska. Such owner shall make such payment to the State of Alaska during such time the collection of payment of fees under section 4(c) of this Act is remitted.
(E) For purposes of paragraph (B), the term "barrels of oil" means only barrels of oil which would, but for the repeal made by this paragraph, be subject to the fee imposed under section 204(c) (5) of the Trans-Alaska Pipeline Authorization Act. The term "Secretary" means the Secretary of the Treasury.
(b) INTERVENTION ON THE HIGH SEAS ACT: Section 17 of the Intervention on the High Seas Act (88 Stat. 10) is amended to read as follows:
"SEC. 17. The Fund established under section 4 of the Oil Spill Liability Fund and Compensation Act of 1978 shall be available to the Secretary for actions taken under section 5 of this Act.".
(C) FEDERAL WATER POLLUTION CONTROL ACT.— Section 311 of the Federal Water Pollution Control Act is amended as follows:
(1) Clause (H) of paragraph (2) of subsection (c) is amended by inserting after the words "of this section" the words "or the fund established under section 4 of the Oil Spill Liability Fund and Compensation Act of 1978, as appropriate,".
(2) Subsection (f) is amended, in the last sentence of paragraph (1), by inserting a comma after the word "vessel" and by adding immediately thereafter "or against any guarantor of an owner's or operator's liability under the Oil Spill Liability and Compensation Fund Act of 1978,".
(3) Subsection (g) is amended, by inserting in the last sentence, after the word "party" the words "or against any guarantor of an owner's or operator's liability under the Oil Spill Liability and Compensation Fund Act of 1978".
(d) DEEPWATER PORT ACT.— The Deepwater Port Act of 1974 (88 Stat. 2126) is amended as follows:
(1) In section 4(c) (1) strike "section 18(1) of this Act;" and insert in lieu thereof "section 6 of the Oil Spill Liability and Compensation Fund Act of 1978,".
(2) Subsections (b), (d), (e), (f), (g), (h), (i), (j), (1), (n), and clause (1) of sub-section (m) of section 18 are deleted.
(3) Clause (3) of subsection (c) of section 18 is amended by striking "Deepwater Port Liability Fund established pursuant to subsection (f) of this section.", and inserting in lieu thereof "fund established under section 4 of the Oil Spill Liability and Compensation Fund Act of 1978".
(4) Subsections (c), (k), and (m) of section 18 are redesignated (b), (c), and (d), respectively, and clauses (2), (3), and (4) of subsection (m) are redesignated (1), (2) , and (3), respectively.
(e) OUTER CONTINENTAL SHELF LANDS ACT AMENDMENTS— Title III of the Outer Continental Shelf Lands Act Amendments of 1978 is hereby repealed.
Amend the title so as to read: "A bill to provide for compensation for damages and cleanup costs caused by discharges of oil, to establish a liability fund, and for other purposes.".