H. Rept. 114-518 - FOREIGN SPILL PROTECTION ACT OF 2016114th Congress (2015-2016)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.1684 |
| Committees: |
H. Rept. 114-518 - 114th Congress (2015-2016)
Report text available as:
- TXT
Formatting necessary for an accurate reading of this legislative text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.
House Report 114-518 - FOREIGN SPILL PROTECTION ACT OF 2016
[House Report 114-518]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-518
======================================================================
FOREIGN SPILL PROTECTION ACT OF 2016
_______
April 25, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 1684]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 1684) to amend the Oil Pollution
Act of 1990 and the Federal Water Pollution Control Act to
impose penalties and provide for the recovery of removal costs
and damages in connection with certain discharges of oil from
foreign offshore units, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Legislative History and Consideration............................ 3
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 4
Performance Goals and Objectives................................. 7
Advisory of Earmarks............................................. 7
Duplication of Federal Programs.................................. 7
Disclosure of Directed Rule Makings.............................. 8
Federal Mandate Statement........................................ 8
Preemption Clarification......................................... 8
Advisory Committee Statement..................................... 8
Applicability of Legislative Branch.............................. 8
Section-by-Section Analysis of Legislation....................... 8
Changes in Existing Law Made by the Bill, as Reported............ 9
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Spill Protection Act of
2016''.
SEC. 2. LIABILITY OF OWNERS AND OPERATORS OF FOREIGN FACILITIES.
Section 1001(32) of the Oil Pollution Act of 1990 (33 U.S.C.
2701(32)) is amended--
(1) by redesignating subparagraphs (D) through (F) as
subparagraphs (E) through (G), respectively;
(2) by inserting after subparagraph (C) the following:
``(D) Foreign facilities.--In the case of a foreign
offshore unit or other facility located seaward of the
boundary of the exclusive economic zone, any person or
other entity owning or operating the facility, and any
leaseholder, permit holder, assignee, or holder of a
right of use and easement granted under applicable
foreign law for the area in which the facility is
located.''; and
(3) in subparagraph (G), as so redesignated, by striking ``or
offshore facility, the persons'' and inserting ``offshore
facility, or foreign offshore unit or other facility located
seaward of the boundary of the exclusive economic zone, the
persons or entities''.
Purpose of Legislation
H.R. 1684, the Foreign Spill Protection Act, as amended,
modifies the Oil Pollution Act definition of ``responsible
party'' to include a defined term for ``foreign facilities''
and further clarify the entities considered a responsible party
in the case of abandonment.
Background and Need for Legislation
The Oil Pollution Act of 1990 (OPA) was enacted in response
to the 1989 T/V Exxon Valdez oil spill in Alaska. The Exxon
Valdez incident highlighted the lack of federal funding
available to respond to spills and the limits in federal law
regarding damage payments. OPA established an oil spill
prevention, response, liability, and compensation regime that
partially uses Clean Water Act authorities.
Prevention measures include double hulls for tankers, the
use of towing vessels, and vessel communication systems, as
well as liners for onshore facilities. Response measures are in
the form of contingency planning, national response units,
Coast Guard district response groups, and tank vessel and
facility response plans.
Liability measures prescribed under OPA section 1002
require a ``responsible party'' (as defined under section 1001,
paragraph (32) to be the owner or operator of a vessel, or an
onshore or offshore facility; 33 U.S.C. 2701) to pay for
removal costs and any damages created by a spill.
Compensation measures in OPA allow an injured party to seek
payment for spill damages occurring to natural resources,
personal or real property, subsistence use, or loss of
revenues. OPA also created the Oil Spill Liability Trust Fund
(OSLTF) financed by a per barrel tax on oil, recovery costs
from responsible parties, civil and criminal penalties, and
interest income. The OSLTF is available to clean up spills, in
the absence of a responsible party, or if the responsible party
is unable to fund clean-up measures.
Section 1001 also defines ``foreign offshore unit'' as a
facility located in whole or part in the territorial sea or on
the continental shelf of a foreign country and used to explore,
drill, produce, store, handle, transfer, process, or transport
oil. As previously mentioned, OPA states that a responsible
party for a vessel or onshore or offshore facility where a
spill occurs or poses a substantial threat of a discharge of
oil in or upon navigable waters or adjoining shoreline of the
United States is liable for damages and cleanup costs as a
result of an incident. A ``foreign offshore unit'' or other
facility located outside the United States exclusive economic
zone are not referenced explicitly either in section 1002 or
the definition of ``responsible party'' in section 1001(32).
However, it has been commonly assumed that such facilities fall
under the broader reference to a vessel or onshore or offshore
facility in the definition of the term ``responsible party''.
As such, H.R. 1684 is intended to make clear in OPA what has
been the common understanding on the reach of United States law
to spills emanating from outside of the United States exclusive
economic zone.
OPA covers oil spills originating in the United States. It
also allows foreign claimants to recover removal costs or
damages if recovery is covered by a Treaty or agreement between
the United States and the claimant's country or if there is a
comparable remedy for United States claimants. However, if
there is a spill originating in foreign waters from a foreign
offshore unit or other facility owned or operated by a foreign
entity with no connection to the United States, and that spill
reaches the jurisdictional waters of the United States, OPA
does not explicitly cover that foreign facility. When there is
no responsible party under OPA for an oil spill originating in
foreign waters that reaches United States waters and shores,
the OSLTF covers in such instances the costs of cleanup and
damages. However, OPA limits cleanup and claims from the OSLTF
to $150 million and $850 million, respectively.
H.R. 1684, as amended, amends OPA to clarify that the scope
of OPA liability for removal costs and damages extends to
foreign offshore units and other facilities for oil spills
originating in foreign waters that reach United States waters.
The bill includes in the definition of ``responsible party'' a
definition of ``foreign facilities''. The bill also further
clarifies the entities considered a ``responsible party'' in
the case of ``abandonment'' to include foreign offshore units
and other facilities.
Hearings
The Subcommittee on Coast Guard and Maritime Transportation
held a hearing on the Federal Radionavigation Plan, H.R. 1684,
the Foreign Spill Protection Act of 2015, and H.R. - - - - the
National Icebreaker Fund Act of 2015 on July 28, 2015, and
received, as part of the hearing, testimony regarding H.R.
1684.
Legislative History and Consideration
H.R. 1684 was introduced by Congressman Carlos Curbelo (R-
FL) on March 26, 2015. On March 2, 2016, the Committee on
Transportation and Infrastructure met in open session to
consider H.R. 1684, and ordered the bill, as amended, reported
favorably to the House of Representatives by voice vote with a
quorum present.
Representative Curbelo (R-FL) offered an amendment in the
nature of a substitute which was adopted by voice vote. The
amendment modifies the definition of ``responsible party'' in
OPA to include in the definition ``foreign facilities''. With
respect to a foreign offshore unit or other foreign facility
located seaward of the boundary of the United States exclusive
economic zone, a ``responsible party'' would include any person
or other entity owning or operating the facility, and any
leaseholder, permit holder, assignee, or holder of a right of
use and easement granted under applicable foreign law for the
area the facility is located. The inclusion of ``foreign
facilities'' in the definition of ``responsible party''
provides further clarity. The amendment also modifies the
``abandonment'' provision within the definition of
``responsible party'' to include a reference to a foreign
offshore unit or other facility located seaward of the boundary
of the United States exclusive economic zone.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 1684. A motion to order H.R. 1684,
as amended, reported favorably to the House was agreed to by
voice vote with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 1684, as amended,
from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 21, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1684, the Foreign
Oil Spill Protection Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Jon Sperl
and Peter Huether.
Sincerely,
Keith Hall.
Enclosure.
H.R. 1684--Foreign Oil Spill Protection Act of 2016
Summary: H.R. 1684 would expose owners and operators of oil
production facilities located offshore and outside of the
United States to liability for cleanup costs and damages from
oil spills. Under the bill, such foreign entities could be held
responsible for oil spills that originate outside U.S. waters
if they threaten or cause damage in the United States. Those
entities also could be penalized under the Federal Water
Pollution Control Act (Clean Water Act), the Deepwater Port
Act, and the Trans-Alaska Pipeline Authorization Act.
Because H.R. 1684 would expand the number of entities that
are subject to U.S. laws, the federal government might recover
additional costs and collect additional penalties under the
legislation. CBO estimates that enacting H.R.1684 would
increase recoveries to the Oil Spill Liability Trust Fund
(OSLTF) by $7 million over the 2017-2026 period. Those
recoveries are recorded as reductions in direct spending. CBO
estimates that the bill also would increase revenues from
penalty collections by $5 million over that period. The
estimated amounts reflect CBO's assessment of the low
likelihood that a significant oil spill originating outside the
United States would occur over the next decade and the small
probability that responsible entities would be identified from
whom the federal government could collect recoveries and
penalties.
Because enacting the bill would affect direct spending and
revenues, pay-as-you-go procedures apply. CBO estimates that
enacting H.R. 1684 would not increase net direct spending or
on-budget deficits in any of the four consecutive 10-year
periods beginning in 2027.
H.R. 1684 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effects of H.R. 1684 are shown in the following
table. Those effects fall within budget function 300 (natural
resources and environment).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in million of dollars--
-----------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
DECREASES IN DIRECT SPEND
Oil Spill Cost Recoveries
Estimated Budget Authority.................... * * * -1 -1 -1 -1 -1 -1 -1 -2 -7
Estimated Outlays............................. * * * -1 -1 -1 -1 -1 -1 -1 -2 -7
INCREASES IN REVENUE
Civil Penalties................................... * * * * * * * 1 1 2 1 5
NET DECREASE IN THE DEFICIT
Impact on Deficit................................. * * * -1 -1 -1 -1 -2 -2 -3 -3 -12
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes * = between -$500,00 and $500,000; components may not sum to totals because of rounding.
Basis of estimate: Under current law, entities responsible
for oil spills in U.S. waters are liable for cleanup costs,
damages, and penalties. H.R. 1684 would expand the definition
of responsible parties under the Oil Pollution Act of 1990
(OPA) to include owners and operators of production facilities
operating offshore in foreign waters. As a result, those
entities could be liable for oil spills that originate outside
the boundaries of the United States' exclusive economic zone
but threaten or cause damage inside those boundaries.
Because H.R. 1684 would increase the number of entities
that could be liable for damages and subject to penalties under
U.S. laws, the bill could enhance the ability of the United
States to recover cleanup costs and collect damages from
foreign entities. However, the effect the bill would have on
recoveries and penalties is uncertain. Any increase in
recoveries or penalties would depend on the scale of foreign
oil production near the United States, the size of future oil
spills caused by foreign entities, and whether those entities
have a legal connection with the United States.
Changes in direct spending: According to the U.S. Coast
Guard (USCG), enacting H.R. 1684 could bolster--relative to
existing means of recovery under international agreements--the
ability of the United States to recover costs related to oil
spills and to collect damages from foreign entities that own or
operate offshore facilities. There have been no oil spills
caused by foreign entities outside of U.S. waters for which the
United States has attempted recovery since OPA was enacted in
1990. While CBO expects that enacting H.R. 1684 could increase
recoveries if foreign entities responsible for a spill conduct
business in, or have a connection with, the United States, the
legislation would probably have little effect on the
government's ability to recover from entities that do not
conduct business in the United States.
Given those uncertainties about the federal government's
ability to recover costs from foreign entities, as well as
uncertainties about the size and likelihood of oil spills in
the future, CBO calculated a range of possible outcomes and
estimates that enacting H.R. 1684 would increase recoveries to
the OSLTF by roughly one percent per year above the amounts CBO
projects will be collected under current law. (That estimate
includes the very small chance of a major oil spill near U.S.
waters that could result in hundreds of millions of dollars in
damages and cleanup costs as well as the higher probability of
smaller spills.) Those recoveries, which are treated as
reductions in direct spending, would total $7 million over the
2017-2026 period, CBO estimates.
Changes in revenues: because H.R. 1684 would potentially
expand the number of entities that are subject to penalties
from oil spills under existing U.S. laws, such as the Clean
Water Act, the federal government could collect additional
penalties under the bill. Based in part on information provided
by the USCG, CBO estimates that enacting H.R. 1684 would result
in $5 million in additional penalty collections, which are
revenues, over the 2017-2026 period, largely in the second half
of the 10-year period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in direct spending and revenues that
are subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1684, AS ORDERED BY THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON MARCH 2, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars----
--------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 0 0 0 -1 -1 -1 -1 -2 -2 -3 -3 -12
Memorandum:
Changes in Outlays............................... 0 0 0 0 -1 -1 -1 -1 -1 -1 -1 -2 -7
Changes in Revenues.............................. 0 0 0 0 0 0 0 0 1 1 2 1 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:Components may not sum to totals because of rounding.
Increase in Long-term deficit and direct spending: CBO
estimates that enacting H.R. 1684 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2027.
Intergovernmental and private-sector impact: H.R. 1684
contains no intergovernmental or private-sector mandates as
defined in UMRA.
Estimate prepared by: Federal Costs: Jon Sperl; Federal
Revenues: Peter Huether; Impact on State, Local, and Tribal
Governments: Jon Sperl; Impact on the Private Sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
amend the Oil Pollution Act to include a foreign offshore unit
or other facility located seaward of the boundary of the
exclusive economic zone as a responsible party under the Act.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 1684, as amended,
establishes or reauthorizes a program of the federal government
known to be duplicative of another federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 1684, as amended, directs no
rule makings.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 1684, as amended,
does not preempt any state, local, or tribal law.
Advisory Committee Statement
No new advisory committees within the meaning of section
5(b) of the Federal Advisory Committee Act are created by this
legislation, as amended.
Applicability of Legislative Branch
The Committee finds that the legislation, as amended, does
not relate to the terms and conditions of employment or access
to public services or accommodations within the meaning of
section 102(b)(3) of the Congressional Accountability Act
(Public Law 104-1).
Section-by-Section Analysis of Legislation
Section 1. Short title
Section 1 provides that the short title of this Act is to
be cited as the `Foreign Spill Protection Act of 2016'.
Section 2. Liability of owners and operators of foreign facilities
Section 2 amends Section 1001(32) of OPA, the ``responsible
party'' definition, to include a new subparagraph (D) to define
``foreign facilities''. In the new definition of ``foreign
facilities'' any person or other entity owning or operating a
foreign offshore unit or other facility located seaward of the
boundary of the exclusive economic zone, and any leaseholder,
permit holder, assignee, or holder of a right of use and
easement granted under applicable foreign law would be a
``responsible party'' under the Act. Again, this term has been
commonly construed to fall under the broader reference to a
vessel or onshore or offshore facility in the definition of the
term ``responsible party''. As such, H.R. 1648 is intended to
make clear in OPA what has been the common understanding on the
reach of United States law to spills emanating from outside of
the United States exclusive economic zone.
This section also amends the redesignated subparagraph (G)
of paragraph (32), pertaining to ``abandonment'', to include
reference to a foreign offshore unit or other facility located
seaward of the boundary of the exclusive economic zone.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
OIL POLLUTION ACT OF 1990
* * * * * * *
TITLE I--OIL POLLUTION LIABILITY AND COMPENSATION
SEC. 1001. DEFINITIONS.
For the purposes of this Act, the term--
(1) ``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;
(2) ``barrel'' means 42 United States gallons at 60
degrees fahrenheit;
(3) ``claim'' means a request, made in writing for a
sum certain, for compensation for damages or removal
costs resulting from an incident;
(4) ``claimant'' means any person or government who
presents a claim for compensation under this title;
(5) ``damages'' means damages specified in section
1002(b) of this Act, and includes the cost of assessing
these damages;
(6) ``deepwater port'' is a facility licensed under
the Deepwater Port Act of 1974 (33 U.S.C. 1501-1524);
(7) ``discharge'' means any emission (other than
natural seepage), intentional or unintentional, and
includes, but is not limited to, spilling, leaking,
pumping, pouring, emitting, emptying, or dumping;
(8) ``exclusive economic zone'' means the zone
established by Presidential Proclamation Numbered 5030,
dated March 10, 1983, including the ocean waters of the
areas referred to as ``eastern special areas'' in
Article 3(1) of the Agreement between the United States
of America and the Union of Soviet Socialist Republics
on the Maritime Boundary, signed June 1, 1990;
(9) ``facility'' means any structure, group of
structures, equipment, or device (other than a vessel)
which is used for one or more of the following
purposes: exploring for, drilling for, producing,
storing, handling, transferring, processing, or
transporting oil. This term includes any motor vehicle,
rolling stock, or pipeline used for one or more of
these purposes;
(10) ``foreign offshore unit'' means a facility which
is located, in whole or in part, in the territorial sea
or on the continental shelf of a foreign country and
which is or was used for one or more of the following
purposes: exploring for, drilling for, producing,
storing, handling, transferring, processing, or
transporting oil produced from the seabed beneath the
foreign country's territorial sea or from the foreign
country's continental shelf;
(11) ``Fund'' means the Oil Spill Liability Trust
Fund, established by section 9509 of the Internal
Revenue Code of 1986 (26 U.S.C. 9509);
(12) ``gross ton'' has the meaning given that term by
the Secretary under part J of title 46, United States
Code;
(13) ``guarantor'' means any person, other than the
responsible party, who provides evidence of financial
responsibility for a responsible party under this Act;
(14) ``incident'' means any occurrence or series of
occurrences having the same origin, involving one or
more vessels, facilities, or any combination thereof,
resulting in the discharge or substantial threat of
discharge of oil;
(15) ``Indian tribe'' means any Indian tribe, band,
nation, or other organized group or community, but not
including any Alaska Native regional or village
corporation, which is recognized as eligible for the
special programs and services provided by the United
States to Indians because of their status as Indians
and has governmental authority over lands belonging to
or controlled by the tribe;
(16) ``lessee'' means a person holding a leasehold
interest in an oil or gas lease on lands beneath
navigable waters (as that term is defined in section
2(a) of the Submerged Lands Act (43 U.S.C. 1301(a))) or
on submerged lands of the Outer Continental Shelf,
granted or maintained under applicable State law or the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.);
(17) ``liable'' or ``liability'' shall be construed
to be the standard of liability which obtains under
section 311 of the Federal Water Pollution Control Act
(33 U.S.C. 1321);
(18) ``mobile offshore drilling unit'' means a vessel
(other than a self-elevating lift vessel) capable of
use as an offshore facility;
(19) ``National Contingency Plan'' means the National
Contingency Plan prepared and published under section
311(d) of the Federal Water Pollution Control Act, as
amended by this Act, or revised under section 105 of
the Comprehensive Environmental Response, Compensation,
and Liability Act (42 U.S.C. 9605);
(20) ``natural resources'' includes land, fish,
wildlife, biota, air, water, ground water, drinking
water supplies, and other such resources belonging to,
managed by, held in trust by, appertaining to, or
otherwise controlled by the United States (including
the resources of the exclusive economic zone), any
State or local government or Indian tribe, or any
foreign government;
(21) ``navigable waters'' means the waters of the
United States, including the territorial sea;
(22) ``offshore facility'' means any facility of any
kind located in, on, or under any of the navigable
waters of the United States, and any facility of any
kind which is subject to the jurisdiction of the United
States and is located in, on, or under any other
waters, other than a vessel or a public vessel;
(23) ``oil'' means oil of any kind or in any form,
including petroleum, fuel oil, sludge, oil refuse, and
oil mixed with wastes other than dredged spoil, but
does not include any substance which is specifically
listed or designated as a hazardous substance under
subparagraphs (A) through (F) of section 101(14) of the
Comprehensive Environmental Response, Compensation, and
Liability Act (42 U.S.C. 9601) and which is subject to
the provisions of that Act;
(24) ``onshore facility'' means any facility
(including, but not limited to, motor vehicles and
rolling stock) of any kind located in, on, or under,
any land within the United States other than submerged
land;
(25) the term ``Outer Continental Shelf facility''
means an offshore facility which is located, in whole
or in part, on the Outer Continental Shelf and is or
was used for one or more of the following purposes:
exploring for, drilling for, producing, storing,
handling, transferring, processing, or transporting oil
produced from the Outer Continental Shelf;
(26) ``owner or operator''--
(A) means--
(i) in the case of a vessel, any
person owning, operating, or chartering
by demise, the vessel;
(ii) in the case of an onshore or
offshore facility, any person owning or
operating such facility;
(iii) in the case of any abandoned
offshore facility, the person who owned
or operated such facility immediately
prior to such abandonment;
(iv) in the case of any facility,
title or control of which was conveyed
due to bankruptcy, foreclosure, tax
delinquency, abandonment, or similar
means to a unit of State or local
government, any person who owned,
operated, or otherwise controlled
activities at such facility immediately
beforehand;
(v) notwithstanding subparagraph
(B)(i), and in the same manner and to
the same extent, both procedurally and
substantively, as any nongovernmental
entity, including for purposes of
liability under section 1002, any State
or local government that has caused or
contributed to a discharge or
substantial threat of a discharge of
oil from a vessel or facility ownership
or control of which was acquired
involuntarily through--
(I) seizure or otherwise in
connection with law enforcement
activity;
(II) bankruptcy;
(III) tax delinquency;
(IV) abandonment; or
(V) other circumstances in
which the government
involuntarily acquires title by
virtue of its function as
sovereign;
(vi) notwithstanding subparagraph
(B)(ii), a person that is a lender and
that holds indicia of ownership
primarily to protect a security
interest in a vessel or facility if,
while the borrower is still in
possession of the vessel or facility
encumbered by the security interest,
the person--
(I) exercises decision making
control over the environmental
compliance related to the
vessel or facility, such that
the person has undertaken
responsibility for oil handling
or disposal practices related
to the vessel or facility; or
(II) exercises control at a
level comparable to that of a
manager of the vessel or
facility, such that the person
has assumed or manifested
responsibility--
(aa) for the overall
management of the
vessel or facility
encompassing day-to-day
decision making with
respect to
environmental
compliance; or
(bb) over all or
substantially all of
the operational
functions (as
distinguished from
financial or
administrative
functions) of the
vessel or facility
other than the function
of environmental
compliance; and
(B) does not include--
(i) A unit of state or local
government that acquired ownership or
control of a vessel or facility
involuntarily through--
(I) seizure or otherwise in
connection with law enforcement
activity;
(II) bankruptcy;
(III) tax delinquency;
(IV) abandonment; or
(V) other circumstances in
which the government
involuntarily acquires title by
virtue of its function as
sovereign;
(ii) a person that is a lender that
does not participate in management of a
vessel or facility, but holds indicia
of ownership primarily to protect the
security interest of the person in the
vessel or facility; or
(iii) a person that is a lender that
did not participate in management of a
vessel or facility prior to
foreclosure, notwithstanding that the
person--
(I) forecloses on the vessel
or facility; and
(II) after foreclosure,
sells, re-leases (in the case
of a lease finance
transaction), or liquidates the
vessel or facility, maintains
business activities, winds up
operations, undertakes a
removal action under section
311(c) of the Federal Water
Pollution Control Act (33
U.S.C. 1321(c)) or under the
direction of an on-scene
coordinator appointed under the
National Contingency Plan, with
respect to the vessel or
facility, or takes any other
measure to preserve, protect,
or prepare the vessel or
facility prior to sale or
disposition,
if the person seeks to sell, re-lease
(in the case of a lease finance
transaction), or otherwise divest the
person of the vessel or facility at the
earliest practicable, commercially
reasonable time, on commercially
reasonable terms, taking into account
market conditions and legal and
regulatory requirements;
(27) ``person'' means an individual, corporation,
partnership, association, State, municipality,
commission, or political subdivision of a State, or any
interstate body;
(28) ``permittee'' means a person holding an
authorization, license, or permit for geological
exploration issued under section 11 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1340) or
applicable State law;
(29) ``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, except when the vessel is engaged in
commerce;
(30) ``remove'' or ``removal'' means containment and
removal of oil or a hazardous substance from water and
shorelines or the taking of other actions as may be
necessary to minimize or mitigate damage to the public
health or welfare, including, but not limited to, fish,
shellfish, wildlife, and public and private property,
shorelines, and beaches;
(31) ``removal costs'' means the costs of removal
that are incurred after a discharge of oil has occurred
or, in any case in which there is a substantial threat
of a discharge of oil, the costs to prevent, minimize,
or mitigate oil pollution from such an incident;
(32) ``responsible party'' means the following:
(A) Vessels.-- In the case of a vessel, any
person owning, operating, or demise chartering
the vessel. In the case of a vessel, the term
``responsible party'' also includes the owner
of oil being transported in a tank vessel with
a single hull after December 31, 2010 (other
than a vessel described in section 3703a(b)(3)
of title 46, United States Code).
(B) Onshore facilities.-- In the case of an
onshore facility (other than a pipeline), any
person owning or operating the facility, except
a Federal agency, State, municipality,
commission, or political subdivision of a
State, or any interstate body, that as the
owner transfers possession and right to use the
property to another person by lease,
assignment, or permit.
(C) Offshore facilities.-- In the case of an
offshore facility (other than a pipeline or a
deepwater port licensed under the Deepwater
Port Act of 1974 (33 U.S.C. 1501 et seq.)), the
lessee or permittee of the area in which the
facility is located or the holder of a right of
use and easement granted under applicable State
law or the Outer Continental Shelf Lands Act
(43 U.S.C. 1301-1356) for the area in which the
facility is located (if the holder is a
different person than the lessee or permittee),
except a Federal agency, State, municipality,
commission, or political subdivision of a
State, or any interstate body, that as owner
transfers possession and right to use the
property to another person by lease,
assignment, or permit.
(D) Foreign facilities.-- In the case of a
foreign offshore unit or other facility located
seaward of the boundary of the exclusive
economic zone, any person or other entity
owning or operating the facility, and any
leaseholder, permit holder, assignee, or holder
of a right of use and easement granted under
applicable foreign law for the area in which
the facility is located.
[(D)] (E) Deepwater ports.-- In the case of a
deepwater port licensed under the Deepwater
Port Act of 1974 (33 U.S.C. 1501-1524), the
licensee.
[(E)] (F) Pipelines.-- In the case of a
pipeline, any person owning or operating the
pipeline.
[(F)] (G) Abandonment.-- In the case of an
abandoned vessel, onshore facility, deepwater
port, pipeline, [or offshore facility, the
persons] offshore facility, or foreign offshore
unit or other facility located seaward of the
boundary of the exclusive economic zone, the
persons or entities who would have been
responsible parties immediately prior to the
abandonment of the vessel or facility.
(33) ``Secretary'' means the Secretary of the
department in which the Coast Guard is operating;
(34) ``tank vessel'' means a vessel that is
constructed or adapted to carry, or that carries, oil
or hazardous material in bulk as cargo or cargo
residue, and that--
(A) is a vessel of the United States;
(B) operates on the navigable waters; or
(C) transfers oil or hazardous material in a
place subject to the jurisdiction of the United
States;
(35) ``territorial seas'' means the belt of the seas
measured from the line of ordinary low water along that
portion of the coast which is in direct contact with
the open sea and the line marking the seaward limit of
inland waters, and extending seaward a distance of 3
miles;
(36) ``United States'' and ``State'' mean the several
States of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American Samoa,
the United States Virgin Islands, the Commonwealth of
the Northern Marianas, and any other territory or
possession of the United States;
(37) ``vessel'' means every description of watercraft
or other artificial contrivance used, or capable of
being used, as a means of transportation on water,
other than a public vessel;
(38) ``participate in management''--
(A)(i) means actually participating in the
management or operational affairs of a vessel
or facility; and
(ii) does not include merely having
the capacity to influence, or the
unexercised right to control, vessel or
facility operations; and
(B) does not include--
(i) performing an act or failing to
act prior to the time at which a
security interest is created in a
vessel or facility;
(ii) holding a security interest or
abandoning or releasing a security
interest;
(iii) including in the terms of an
extension of credit, or in a contract
or security agreement relating to the
extension, a covenant, warranty, or
other term or condition that relates to
environmental compliance;
(iv) monitoring or enforcing the
terms and conditions of the extension
of credit or security interest;
(v) monitoring or undertaking one or
more inspections of the vessel or
facility;
(vi) requiring a removal action or
other lawful means of addressing a
discharge or substantial threat of a
discharge of oil in connection with the
vessel or facility prior to, during, or
on the expiration of the term of the
extension of credit;
(vii) providing financial or other
advice or counseling in an effort to
mitigate, prevent, or cure default or
diminution in the value of the vessel
or facility;
(viii) restructuring, renegotiating,
or otherwise agreeing to alter the
terms and conditions of the extension
of credit or security interest,
exercising forbearance;
(ix) exercising other remedies that
may be available under applicable law
for the breach of a term or condition
of the extension of credit or security
agreement; or
(x) conducting a removal action under
311(c) of the Federal Water Pollution
Control Act (33 U.S.C. 1321(c)) or
under the direction of an on-scene
coordinator appointed under the
National Contingency Plan,
if such actions do not rise to the level of
participating in management under subparagraph
(A) of this paragraph and paragraph
(26)(A)(vi);
(39) ``extension of credit'' has the meaning provided
in section 101(20)(G)(i) of the Comprehensive
Environmental Response, Compensation and Liability Act
of 1980 (42 U.S.C. 9601(20)(G)(i));
(40) ``financial or administrative function'' has the
meaning provided in section 101(20)(G)(ii) of the
Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. 9601(20)(G)(ii));
(41) ``foreclosure'' and ``foreclose'' each has the
meaning provided in section 101(20)(G)(iii) of the
Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. 9601(20)(G)(iii));
(42) ``lender'' has the meaning provided in section
101(20)(G)(iv) of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (42
U.S.C. 9601(20)(G)(iv));
(43) ``operational function'' has the meaning
provided in section 101(20)(G)(v) of the Comprehensive
Environmental Response, Compensation and Liability Act
of 1980 (42 U.S.C. 9601(20)(G)(v)); and
(44) ``security interest'' has the meaning provided
in section 101(20)(G)(vi) of the Comprehensive
Environmental Response, Compensation and Liability Act
of 1980 (42 U.S.C. 9601(20)(G)(vi)).
* * * * * * *
[all]