National Pollution Funds Center Mission Overview 

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Contents

Introduction 1

Oil Pollution Act 1

CERCLA and Superfund 1

Disaster Funding 2

Vision & Mission 3

NPFC Vision Statement 3

NPFC Mission Statement 3

Core Values 4

Whom Do We Touch? 5

Organization 6

Cross-Functional Coordination 7

Regional Case Teams 8

Oil Spill Liability Trust Fund (OSLTF) 9

History of the Fund 9

Revenue Sources 9

Fund Components 10

Removal Actions 10

State Access 11

Claims 11

Funding for Natural Resource Damages 12

Agency Appropriations 13

Coast Guard Superfund Use 14

History 14

Coast Guard CERCLA Responses 14

Coast Guard Disaster Responses 14

Vessel Financial Responsibility Certification 15

Guidance Materials 16 
National Pollution Funds Center Mission Overview 

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Introduction

As millions of gallons of oil are transported and stored across the United 

States every day, we are faced with the possibility of an accidental spill that 

can devastate wildlife, endanger our water, and impact our economy. 

The U.S. Coast Guard’s National Pollution Funds Center (NPFC), committed 

to protecting America’s environment, provides protection up-front by 

certifying that oil-carrying vessels have the financial ability to pay in the case 

of an oil spill. When spills do occur, the NPFC provides funding for quick 

response, compensates claimants for cleanup costs and damages, and takes 

action to recover costs from responsible parties. 

Oil Pollution Act

In 1990, Congress passed the Oil Pollution Act (OPA) to help address a wide 

range of issues associated with preventing, responding to, and paying for oil 

pollution. It does so by creating a comprehensive prevention, response, 

liability, and compensation regime to deal with oil pollution to U.S. navigable waters caused by vessels or 

facilities. OPA significantly increased federal oversight of maritime oil transportation, while providing 

greater environmental safeguards. This was accomplished by setting new requirements for vessel 

construction and crew licensing and manning, mandating contingency planning, enhancing federal 

response capability, broadening enforcement authority, increasing penalties, creating new research and 

development programs, increasing potential liability limits, and significantly broadening financial 

responsibility requirements. 

Title I of OPA established new and higher liability limits for oil spills, with commensurate changes to 

financial responsibility requirements. It substantially broadened the scope of damages, including natural 

resource damages, for which polluters are liable. It also provided for the use of a billion Oil Spill Liability 

Trust Fund (OSLTF or Fund) to pay for expeditious oil removal and uncompensated damages. OSLTF 

administration was delegated to the U.S. Coast Guard by Executive Order; and on February 20, 1991, the 

NPFC was commissioned to perform this function. 

CERCLA and Superfund

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) gave 

the Federal government the authority and the funding (i.e., Superfund) to clean up sites contaminated by 

hazardous waste. CERCLA response authority includes response to intentional releases of industrial or 

military hazardous materials by terrorists, resulting in an overlap of pollution response and homeland 

security. Although the EPA administers Superfund, the Coast Guard responds to releases and substantial 

threats of releases of hazardous materials in the coastal zone, the Great Lakes, and inland river ports. 

Since its establishment, the NPFC has served as the fiduciary agent for the portion of the Superfund used 

by the Coast Guard. EPA provides the funds to the Coast Guard through Inter-Agency Agreements 

(IAGs); the funds are used for costs incurred in removal operations following a CERCLA incident and for 

the ongoing costs of building and maintaining response capabilities (training, equipment, personnel). 

Craig A. Bennett 

Director, NPFC
National Pollution Funds Center Mission Overview 

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Disaster Funding

The Stafford Act provides federal assistance 

to state and local governments impacted by a 

significant disaster or emergency, such as 

hurricanes or terrorist acts. These events fall 

under the National Response Plan (NRP). 

If the President issues a Federal Disaster 

Declaration, FEMA-administered Stafford 

Act funds become available for a wide 

variety of emergency Mission Assignments. 

The Coast Guard has frequently been called 

upon to conduct operations supporting these 

Mission Assignments, which routinely 

include response to oil and hazardous 

materials spills/releases and periodically may 

involve search and rescue, law enforcement, 

and marine debris removal. 

The NPFC serves as the fiduciary agent for 

the portion of the Stafford Act funding 

assigned to the Coast Guard for pollution 

response. Disaster relief funds for pollution 

response (ESF-10) are made available to the 

Coast Guard through IAGs. The funds are 

used for costs incurred in removal operations 

following a Presidential disaster declaration. 
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Vision & Mission

NPFC Vision Statement

The NPFC aspires to be the model fiduciary manager of a federal trust fund and the implementing agency 

of a premiere financial responsibility program. We realize our vision through quality; equitable and 

timely customer service; innovative leveraging of technology to increase productivity; and continuous 

focus on our regulatory mandates, as well as our stakeholders’ diverse interests. 

NPFC Mission Statement

The NPFC has fiduciary responsibility to administer the OSLTF, manage the portion of the Superfund 

that the Coast Guard uses, and oversee the vessel financial responsibility provisions of OPA. In 

accordance with OPA and other pertinent legislative mandates, the NPFC implements programs to 

accomplish these seven objectives: 

1. Administer the Oil Spill Liability Trust Fund 

The past decade has seen a wide range of laws passed by the Congress to improve financial 

management in the Federal government. Two prominent examples are the Chief Financial Officer 

(CFO) Act and the Debt Collection Improvement Act. The NPFC has enhanced its business 

processes as a result of these laws, employing rigorous fiduciary management and reporting 

systems to meet statutory requirements established for federal trust funds such as the OSLTF. 

2. Provide funding for federal removal actions in response to a discharge or a 

substantial threat of discharge of oil to navigable waters of the United States 

When an oil or hazardous substance spill occurs in U.S. navigable waters, or there is a substantial 

threat of such a spill, the Responsible Party (RP) is expected to act promptly. The NPFC maintains 

a system that provides funds 24-hours-a-day for Federal On-Scene Coordinator (FOSC) needs, 

either to immediately respond or to monitor the RP’s cleanup activities. Funds may also be 

accessed by states for oil removal actions. 

3. Compensate claimants for OPA removal costs or damages 

OPA expands the scope of damages claimants can recover and does away with the traditional 

admiralty ship owners’ protection. Traditional protection generally limited the scope of pure 

economic damages to only those who owned property physically impacted by oil and often limited 

the extent of liability of the ship owner to the value of the ship. The NPFC compensates those who 

have suffered certain damages or incurred removal costs because of a discharge or a substantial 

threat of a discharge of oil to U.S. navigable waters. 

4. Provide funding to natural resource trustees for Natural Resource Damage 

Assessment (NRDA) and restoration 

For oil spills affecting natural resources, trustees may choose to submit a request to conduct the 

initiation of an NRDA. This established procedure allows the trustees, acting through a Federal 

Lead Administrative Trustee (FLAT), to gain access to OSLTF funds to complete these “preassessment” activities. The NPFC provides responsive adjudication of claims and distributes 

information to potential claimants and the public for NRD claims. 
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5. Recover OPA removal costs and damages from responsible parties (RPs) 

An underlying principle of OPA is to reduce the probability of an oil spill incident. The law is 

designed to motivate potential polluters to act more responsibly by holding them strictly liable for 

costs and damages resulting from oil spills into U.S. navigable waters. Such action is encouraged 

by enforcement of cost recovery under OPA. NPFC’s goals are to ensure that: 

 Parties responsible for oil pollution or substantial threat of oil pollution are identified 

 All removal costs and damages are documented accurately and submitted promptly 

 RPs pay such costs and damages 

6. Issue certificates of financial responsibility (COFRs) for vessels 

OPA substantially increased the scope and limits of liability for vessel owners and operators. 

Operators of U.S.- and foreign-flag vessels over 300 gross tons generally are prohibited from 

operating in U.S. waters without first demonstrating their financial ability to pay for pollution 

removal costs and damages. The NPFC is responsible for issuing vessel COFRs in accordance with 

OPA and CERCLA. The Coast Guard and U.S. Customs Service field units enforce the COFR 

requirement. Currently, about 19,000 vessels carry COFRs issued by the Coast Guard. 

7. Provide funding for Coast Guard responses to discharges or the substantial threats 

of a discharge of hazardous substances 

CERCLA and the Hazardous Substance Superfund give the Federal government flexibility in 

identifying and addressing releases of hazardous substances and provide monies to identify, 

prioritize, and clean up the nation’s uncontrolled hazardous waste sites. The NPFC provides 

funding for removal action from a portion of the Superfund to FOSCs for incidents in the coastal 

zone, Great Lakes, and inland river ports. 

Core Values

The NPFC recognizes that our values directly influence the manner in which we carry out our missions 

and fulfill our vision. NPFC’s values are: 

 To conduct our activities with the highest standards of professionalism and ethics and to treat all 

of our customers fairly. 

 To recognize our people as our most important asset and to fully empower them to carry out their 

assigned responsibilities, supported with necessary resources, held accountable for what they do, 

and rewarded for their accomplishments. 

 To ensure success and a balanced work-life environment through teamwork, fostering motivation, 

diversity, challenge, wellness, and personal growth. 

 To maximize productivity through the use of innovative information technology (IT). 

 To value and seek out input from our customers and use that input to continuously improve our 

work processes. 

 To embrace the Coast Guard’s core values of honor, respect, and devotion to duty. 
National Pollution Funds Center Mission Overview 

Whom Do We Touch?

The NPFC routinely interacts with multiple public and private entities to include: 

 Coast Guard and U.S. Environmental Protection Agency (EPA) FOSCs and other components of 

the National Response System 

 7,400 vessels operators and 2,600 owners plus a myriad of port agents, Protection and Indemnity 

Club correspondents, and attorneys 

 2,700 RPs and their associated staffs 

 1,500 private third-party claimants (from citizens with oil on their seawall to major shipping 

companies) 

 The environmental staff of states and their governors’ offices 

 All designated natural resource trustees—Federal, state, and Indian tribe 

 All representatives on the National Response Team 

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Organization

NPFC is organized into seven divisions as shown in the organizational chart below. 

 Vessel Certification – Certifies vessel operators’ maintenance of financial responsibility for 

oil/hazardous substance pollution from vessels in U.S. waters. Receives and processes 

enforcement inquiries. Provides information to the field concerning the detainment and release of 

U.S.- and foreign-flag vessels under the certification enforcement program. 

 Case Management – Ensures emergency funding is available to support responses to the 

substantial threat or actual discharge of oil or the release of hazardous substances into U.S. 

navigable waters. Acts as the primary point of contact with the pollution response community. 

Provides for accurate cost documentation and effective cost recovery. 

 Claims – Adjudicates claims for uncompensated removal costs and OPA-specified damages from 

a discharge of oil or the substantial threat of discharge of oil into U.S. navigable waters. 

 Natural Resource Damage (NRD) Claims – Provides funding for the Initiation of NRD 

activities and adjudicates NRD claims and loss-of-use subsistence claims caused by a discharge of 

oil or the substantial threat of a discharge into U.S. navigable waters. (NRD claims can only be 

submitted by federal, state, Indian tribe, or foreign trustees, as designated pursuant to OPA, 

Executive Order, and federal regulations.) 

 Financial Management – Provides fund management and oversight for OSLTF, CERCLA, and 

pollution-related disaster funds under the Stafford Act and the NRP. Coordinates all budgeting 

functions, including planning and programming. Prepares financial statements in accordance with 

the Chief Financial Officers Act. 

 Resources Management – Provides administrative and technical support for human resources, 

information technology, facilities management, information dissemination, and records 

management by leveraging available resources and technology to enable NPFC to consistently 

deliver services in a way that balances performance, quality and cost.

 Legal – Provides legal support for the Command, including advice on funding cleanups, 

adjudicating claims, cost recovery, and the legal aspects of vessel financial responsibility. 

Provides litigation support to the U.S. Department of Justice (DOJ). 
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Cross-Functional Coordination

Although the NPFC is organized by division, it also operates as a matrix-based organization centered 

around four regional Case Teams, each with its own geographic responsibility as described on the 

following page. A Regional Manager serves as the central internal coordinator and external point of 

contact for the pollution response community and leads each Case Team. Case Teams are composed of 

case officers and technical experts from each functional area, including the following: 

 An Attorney 

 A Financial Manager 

 An Insurance Examiner 

 A Claims Manager 

 An NRD Claims Manager 

 Other specialists as required 

The Case Team is part of the National Response System, consisting of federal, state, and local agencies. 

The Case Team works closely with the FOSC and other members of the response community. The Case 

Team acts as a natural working group to manage all fund-related aspects of cases to ensure appropriate 

OSLTF/CERCLA fund access, effective cost recovery, education through outreach efforts, and resolution 

of other related financial issues. 
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Regional Case Teams

Team I 

Responsible for most of the Coast Guard District 8 (CGD8) 

(including MSD Minneapolis-St. Paul AOR) and EPA Regions VI 

and VII. Includes Texas, New Mexico, Louisiana, Arkansas, 

Oklahoma, Missouri, Kansas, Nebraska, and Iowa. Does not include 

CGD8 Mobile, Memphis, Paducah, Louisville, Huntington, and 

Pittsburgh Captain of the Port (COTP) zones. 

Team II 

Responsible for CGD7, portions of CGD5 and CGD8, EPA Region II 

(Caribbean Section), and EPA Region IV. Includes CGD8 Mobile, 

Memphis, Paducah, Louisville, Huntington, and Pittsburgh COTP 

zones; CGD5 Hampton Roads and Wilmington COTP zones; and the 

U.S. Virgin Islands, Puerto Rico, Florida, Georgia, South Carolina, 

Tennessee, North Carolina, Kentucky, Alabama, Mississippi, Virginia 

(COTP Hampton Roads zone only), and Pennsylvania (COTP 

Pittsburgh zone only). 

Team III 

Responsible for CGD11, CGD13, CGD14, CGD17, and EPA 

Regions VIII, IX, and X. Includes Arizona, California, Nevada, 

Utah, Colorado, North Dakota, South Dakota, Wyoming, 

Montana, Idaho, Washington, Oregon, Alaska, Hawaii, Guam, 

and American Samoa. 

Team IV 

Responsible for CGD1, CGD9, portions of CGD5, and EPA 

Regions I, II (less Caribbean Section), III, and V. Includes CGD5 

COTP Philadelphia and Baltimore zones, Minnesota (less MSD 

Minneapolis-St. Paul AOR), Michigan, Wisconsin, Illinois, Indiana, 

Ohio, New York, Vermont, New Hampshire, New Jersey, 

Connecticut, Rhode Island, Massachusetts, Maine, Virginia (less 

COTP Hampton Roads zone), West Virginia (less COTP Huntington), 

Pennsylvania (less COTP Pittsburgh zone), Maryland, Delaware, and 

Washington, D.C. 
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Oil Spill Liability Trust Fund (OSLTF)

History of the Fund

In August 1990, when President George H. W. Bush signed OPA into law and authorized use of the 

OSLTF, the Fund was already four years old. Congress created the Fund in 1986, but did not pass 

legislation to authorize the use of the money or the collection of revenue necessary for its maintenance. It 

was only after the T/V Exxon Valdez grounding and the passage of OPA that authorization was granted. 

In addition to authorizing use of the OSLTF, OPA consolidated the liability and compensation 

requirements of certain prior federal oil pollution laws and the supporting funds, including the: 

 Federal Water Pollution Control Act (FWPCA) 

 Deepwater Port Act 

 Trans-Alaska Pipeline System (TAPS) Authorization Act 

 Outer Continental Shelf Lands Act 

With the consolidation of those funds and the collection of a tax on the petroleum industry, the Fund 

increased to $1 billion. Fund uses were delineated by OPA to include: 

 Payment of removal cost authorized by FOSC under the National Contingency Plan (NCP) 

 State access for removal actions 

 Payments to federal, state, and Indian tribe trustees to conduct natural resource damage 

assessments and restorations 

 Payment of claims for uncompensated removal costs and damages 

 Research and development, and other specific appropriations to Federal Agencies 

The Energy Policy Act of 2005 reinstated the tax effective April 1, 2006. In November 2008 the Energy 

Improvement and Extension Act of 2008 increased the tax from 5 cents/barrel (bbl) to 8 cents/bbl through 

December 31, 2016 and to 9 cents/bbl from then until December 31, 2017. This increase was effective 

immediately. 

Revenue Sources

The OSLTF has several recurring and nonrecurring sources of revenue. 

 Barrel Tax – The largest source of revenue has been a 5-cent per barrel tax, collected from the oil 

industry on petroleum produced in, or imported to, the U.S. The tax was suspended on July 1, 

1993, because the Fund reached its statutory limit. It was reinstated on July 1, 1994, but ceased on 

December 31, 1994, because of the “sunset” provision in the law. The 2005 Energy Policy Act 

reinstated the tax effective April 1, 2006. The Energy Improvement and Extension Act of 2008 

increased the tax from 5 cents/bbl to 8 cents/bbl through December 31, 2016 and to 9 cents/bbl 

from then until December 31, 2017. This increase was effective immediately. 

 Transfers – A second major source of revenue has been transfers from other existing pollution 

funds listed above. Total transfers into the Fund since 1990 have exceeded $550 million. No 

additional funds remain to be transferred to the OSLTF. 

 Interest – Another recurring source of OSLTF revenue is the interest on the Fund principal from 

U.S. Treasury investments. As a result of historically low interest rates, interest income has 

declined significantly in recent years. 

 Cost Recoveries – Cost recovery from RPs is another source of revenue; those responsible for oil 

incidents are liable for costs and damages. NPFC bills RPs to recover costs expended by the Fund. 

As these monies are recovered, they are deposited into the Fund. 

 Penalties – In addition to paying for clean-up costs, RPs may incur fines and civil penalties under 

OPA, the FWPCA, the Deepwater Port Act, and the TAPS Authorization Act. 
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Fund Components

The OSLTF has two major components—the Emergency 

Fund for FOSC removal activities and the initiation of an 

NRDA, and the Principal Fund for all other authorized 

uses. OPA requires these components to be used for 

separate, distinct purposes. Expenditures from the Fund for 

any one oil pollution incident are limited to $1 billion, and 

natural resource damage assessments and claims in 

connection with any single incident are limited to $500 

million. 

 Emergency Fund – To ensure rapid, effective 

response to oil spills, the President has the 

authority to make available, without 

Congressional appropriation, up to $50 million each year to fund removal activities and initiate 

NRDAs. Funds not used in a fiscal year are available until expended. To the extent the $50 

million is inadequate, up to $100 million from the OSLTF may be advanced to fund removal 

activities. 

 The Principal Fund – The Principal Fund, that portion of the OSLTF exclusive of the 

Emergency Fund, is used primarily to carry out three functions: 

 Adjudication and payment of claims for certain uncompensated removal costs and damages 

(appropriation from Congress not required) 

 Implementation, administration, and enforcement of OPA through Congressional Appropriations 

 Research and development through Congressional Appropriation 

Removal Actions

The OSLTF provides funding for oil pollution removal activities when oil is discharged into the navigable 

waters, adjoining shorelines, and the Exclusive Economic Zone (EEZ) of the United States. Funding is 

also provided to prevent or mitigate the substantial threat of such an oil discharge. The Emergency Fund 

may be used for the following types of removal activities and costs. The list includes, but is not limited to, 

the following: 

 Containing and removing oil from water and shorelines 

 Preventing or minimizing a substantial threat of discharge 

 Monitoring the activities of RPs 

Examples of removal costs include: 

 Contract services (e.g., cleanup contractors) 

 Equipment used in removals 

 Chemical testing required to identify the type and source of oil 

 Proper disposal of recovered oil and oily debris 

 Costs for government personnel and temporary government employees hired for the duration of 

the spill response 

 Completion of documentation 

 Identification of RPs 

The Coast Guard has responsibility for removal actions in the coastal zone, while EPA has responsibility 

in the inland zone. 
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State Access

State access to the OSLTF is provided by OPA and is a process through which states can directly receive 

federal funds for immediate removal costs in response to an actual or substantial threat of a discharge of 

oil, after coordination with and approval by the FOSC. In accordance with OPA, states are limited to 

$250,000 per incident for removal costs, consistent with the NCP. State access does not supersede or 

preclude the use of other federal payment regimes. States may also obtain federal funding for oil spill 

removal actions by supporting the FOSC or by using the claims process. Neither of these methods is 

subject to the $250,000 limit per incident. 

Claims

Claims may be presented to the NPFC using several vehicles depending on the classification of the claim. 

The Claims Adjudication Division accepts claims for uncompensated removal costs incurred and damages 

suffered as a result of an oil pollution incident. The NRD Claims Division accepts claims from authorized 

claimants for damages to natural resources (NRD claims are described more fully on the next page). Both 

divisions have developed internal procedures for processing and adjudicating claims for consistency with 

the law and regulations as described in the following two sections. 

To centralize the OSLTF claims process, the Coast Guard received an unlimited delegation of authority 

from the President to adjudicate claims presented to the OSLTF. This authority was further delegated to 

the NPFC on March 12, 1992. The NPFC’s claim procedures attempt to strike a reasonable balance 

between the objectives of compensating deserving claimants and acting as a fiduciary for the Fund by 

ensuring that the funds are spent properly. Before claimants can be compensated, they must satisfy the 

statutory requirements of OPA. For example, the incident must involve a discharge of oil or a substantial 

threat of a discharge of oil into U.S. navigable waters, and the claim must be submitted within prescribed 

time periods (three years for damages, six years for removal costs). Additionally, a claimant must claim a 

damage or removal cost compensable under OPA and must have first presented the claim to the RP or 

guarantor except in certain circumstances. 

The most common claim type received by the NPFC is removal cost claims. These claims may be 

submitted by any person who has incurred costs for removal actions that are consistent with the NCP. 

Removal cost claimants include state governments, putative RPs who can show that the oil came from 

another source, cleanup contractors who have not been paid by the hiring RP, and members of the public 

who have discovered a spill and responded to the need for cleanup. In all instances, the removal activity 

should be coordinated with the FOSC for purposes of establishing that there was a discharge or 

substantial threat of a discharge of oil into navigable waters and that the actions taken were consistent 

with the NCP. The NPFC will reimburse the reasonable uncompensated cost of oil removal. 

All claims submitted to the NPFC must first be submitted to the RP, generally the owner or operator of 

the source of the discharge or substantial threat of discharge of oil into the navigable waters of the United 

States. One exception to this is that state governments may submit claims for uncompensated removal 

costs directly to the NPFC. 

As a result of this exception, the NPFC Removal Claims Branch has been able to develop an expedited 

claims procedure for state governments. The state government representatives and the NPFC claims 

representatives reach agreement ahead of time on the evidence to be submitted by the state, the labor and 

equipment rates to be used in all responses, and the level of coordination required with the FOSC. In 

some cases, this process has shortened the adjudication time for state government claims to less than a 

week. Other exceptions allow a claim to be presented directly to the Fund when the Fund advertises for 

such claims or when an RP presents a claim based on an OPA defense or liability limit. 
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Funding for Natural Resource Damages

Under OPA, “natural resources” include land, fish, wildlife, biota, air, water, groundwater, 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 resources of the EEZ), any state or local government 

or Indian tribe, or any foreign government. 

Designated federal, state, Indian, and 

foreign natural resource trustees can request 

funding for natural resource damages under 

OPA. The President has designated the U.S. 

Departments of Commerce (NOAA, DOC), 

Interior, Defense, Agriculture, and Energy 

as the federal trustees. State trustees are 

designated by each state’s governor. The 

head of a foreign government designates the 

trustee who shall act on behalf of that 

government. The governing body of any 

Indian tribe designates tribal officials who 

may act on behalf of the tribe or its 

members. Further, an Indian tribe must be 

recognized as eligible for special programs and services 

provided by the United States because of their status as 

Indians, and must have governmental authority over lands 

belonging to or controlled by the tribe. 

NRDA Initiate Requests 

In response to an OPA incident, the Emergency Fund of 

the OSLTF can be used to pay for the initiation of natural 

resource damage assessment (INRDA) conducted by 

designated natural resource trustees. In the preassessment 

phase, outlined in 15 CFR §990, Subpart D, trustees must 

determine jurisdiction, undertake preliminary data 

collection, assess the effectiveness of the response, 

identify feasible restoration measures, and provide a 

notice of intent to conduct restoration planning. Executive 

Order 12777 limits payments to the five federal trustees 

that may act to allocate funds for pre-assessment activities 

among all affected trustees. 

The NPFC and the FLAT execute an IAG for each OPA 

incident requiring funds to initiate an NRDA. The FLAT 

submits a request for the initiation on behalf of the 

affected federal, state, Indian tribe, or foreign trustees to 

the NPFC’s NRD Claims Division to coordinate access to 

the OSLTF. The IAG is reviewed for conformity with OPA requirements, applicable federal regulations, 

and NPFC operating procedures and ensures that the FOSC is notified that preassessment phase activities 

are being performed for the incident. 

While the criteria for funding eligibility remain the same, the NPFC does not impose absolute time limits 

on federal trustees for NRDA Initiate IAGs. The length of time depends on the particular situation and is 

determined jointly by NPFC and the trustees. 
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NRD Claims 

NPFC started paying claims for NRD in 1999. Until that time, the NPFC relied on a 1995 Comptroller 

General opinion that specified OPA provide for payment of NRD claims from the OSLTF only by 

appropriation. In late 1997, the DOJ Office of Legal Counsel made a determination that NRDs would be 

payable from the OSLTF Principal Fund without further appropriation, like other OPA damage and 

removal cost claims. As a result, the NPFC established and organized an NRD Claims Division to 

adjudicate and pay NRD claims, the first of which was paid in September 1999. 

Under OPA, the trustees assess natural resource damages and develop and implement plans to restore 

damaged natural resources. The costs of damage assessment and restoration must be determined with 

respect to plans adopted by the trustee. These plans must be developed and implemented only after 

adequate public notice and consideration of all public comments. 

To file an NRD claim with the NPFC, the statute of limitations under OPA is whichever is later: three 

years from the date the injury and connection with the discharge was reasonably discovered with due 

care, or three years from the date the assessment was completed in accordance with NRDA regulations 

(15 CFR 990, promulgated by NOAA). 

Only designated trustees may submit OPA NRD claims. Notice of designation should be provided to the 

NPFC to establish the authority of the claimant who is submitting the claim. 

The procedure for submission of the claim to the NPFC is the same for trustees as it is for other claimants. 

For example, the NRD claim should be presented to the RP or its guarantor before submission to the 

NPFC for payment through the OSLTF. 

Agency Appropriations

Multiple federal agencies receive annual appropriations from the OSLTF to cover specific administrative, 

operational, personnel, enforcement, and research and development costs, as authorized in OPA and 

delegated by Executive Order 12777. Agency responsibilities for carrying out OPA requirements include 

regulation, administration and enforcement of changes in vessel construction; tighter controls on licensing 

and manning; new requirements for vessel and facility operations and response planning; stricter liability 

and compensation requirements including increased financial responsibility, management of the OSLTF, 

compensation to claimants, and cost recovery from responsible parties; and improved cooperative 

relationships among responding agencies and oil industry stakeholders, including periodic drills and 

implementation of changes to the NCP, Area Contingency Plans and National Response System (NRS). 

Organizations currently receiving appropriations from the Fund are: 

 Coast Guard 

 Environmental Protection Agency 

 Minerals Management Service (Department of the Interior) 

 Pipeline Safety Administration (Department of Transportation) 

 Department of the Treasury 

 Prince William Sound Oil Spill Recovery Institute (OSRI) 

 Denali Commission 
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Coast Guard Superfund Use

History

CERCLA established the Superfund to provide monies to identify, prioritize, and clean up the nation’s 

uncontrolled hazardous waste sites. The Superfund, administered by EPA, was created as an important 

CERCLA component to give the Federal government flexibility in identifying and addressing potentially 

harmful releases of hazardous substances. The Superfund provides the funds that enable federal agencies to 

respond immediately to hazardous substance releases and contamination problems that pose a threat to 

public health and the environment. Removal costs are recovered from the RP(s) by EPA. 

CERCLA established the Superfund to provide monies to identify, prioritize, and clean up the nation’s 

uncontrolled hazardous waste sites. The Superfund, administered by EPA, was created as an important 

CERCLA component to give the Federal government flexibility in identifying and addressing potentially 

harmful releases of hazardous substances. The Superfund provides the funds that enable federal agencies to 

respond immediately to hazardous substance releases and contamination problems that pose a threat to 

public health and the environment. Removal costs are recovered from the RP(s) by EPA. 

Coast Guard CERCLA Responses

Since August 1981, Coast Guard FOSCs have responded to releases and substantial threats of releases of 

hazardous substances, pollutants, or contaminants (HAZMAT) in the coastal zone, the Great Lakes, and 

inland river ports as designated in the NCP. The Coast Guard National Strike Force (NSF) Strike Teams 

provide highly trained personnel to support these responses. The NCP designates the NSF as a national 

resource available to all of the FOSCs conducting removal operations throughout the United States, its 

territories, and possessions. 

Since August 1981, Coast Guard FOSCs have responded to releases and substantial threats of releases of 

hazardous substances, pollutants, or contaminants (HAZMAT) in the coastal zone, the Great Lakes, and 

inland river ports as designated in the NCP. The Coast Guard National Strike Force (NSF) Strike Teams 

provide highly trained personnel to support these responses. The NCP designates the NSF as a national 

resource available to all of the FOSCs conducting removal operations throughout the United States, its 

territories, and possessions. 

Since its establishment, NPFC has served as the fiduciary 

agent for the portion of the Superfund used by the Coast 

Guard. EPA provides the funds to the Coast Guard through 

IAGs which are used for the ongoing costs of building and 

maintaining response capabilities (training, equipment, 

personnel) and for costs incurred in removal operations 

following a CERCLA incident. 

Since its establishment, NPFC has served as the fiduciary 

agent for the portion of the Superfund used by the Coast 

Guard. EPA provides the funds to the Coast Guard through 

IAGs which are used for the ongoing costs of building and 

maintaining response capabilities (training, equipment, 

personnel) and for costs incurred in removal operations 

following a CERCLA incident. 

The number of Coast Guard responses to releases of 

HAZMAT is externally driven by the number of such 

incidents that occur and are reported. Public awareness of 

the danger and adverse environmental impacts caused by these releases affects the number that is 

reported. The total cost per year is more dependent on the size of the responses than the number. 

The number of Coast Guard responses to releases of 

HAZMAT is externally driven by the number of such 

incidents that occur and are reported. Public awareness of 

the danger and adverse environmental impacts caused by these releases affects the number that is 

reported. The total cost per year is more dependent on the size of the responses than the number. 

CERCLA authority includes response to intentional releases of industrial or military HAZMAT by 

terrorists, resulting in an overlap of pollution response and homeland security. 

Coast Guard Superfund Use

History

Coast Guard CERCLA Responses

Coast Guard Disaster Responses

The Coast Guard, under the National Response Framework (NRF), is tasked with pollution response (oil 

and hazardous chemicals/pollutants/contaminants) under Emergency Support Function 10 (ESF-10). If 

the President declares a disaster and ESF-10 actions must be taken, FEMA can assign the Stafford Act 

funds for Coast Guard pollution response activity. Such activity can include FOSC-directed removals and 

the deployment of Strike Teams and other special teams. NPFC serves as the Coast Guard’s financial 

manager for these responses. 

During a disaster, the NPFC coordinates ESF-10 Funds among the responding Coast Guard FOSC’s 

district offices, FEMA and EPA regional offices, and the Joint Field Offices (IFO) set up in each state, as 

prescribed by the NRF issued by DHS. 
National Pollution Funds Center Mission Overview 

www.uscg.mil/npfc 15

Vessel Financial Responsibility Certification

The United States depends on marine transportation for the majority of its imports and exports, including 

chemical- and petroleum-based products. Oil spill incidents occur from all types of vessels, not just 

tankers. Section 1016 of OPA requires operators of vessels over 300 gross tons, using the navigable 

waters of the U.S., or vessels of any size that lighter or transship oil in the EEZ of the United States, to 

provide evidence of their financial ability to satisfy liability claims for removal costs and damages up to 

the prescribed limits. 

The primary goals of NPFC’s Certificates of Financial Responsibility (COFR) program are to ensure that 

RPs are identified and held financially responsible to the full extent of the law for any expenses involved 

in dealing with any specific vessel water pollution incident. This certification is accomplished by issuing 

COFRs to vessel operators who have demonstrated adequate evidence of financial responsibility as 

established by law. 

In 2006, the vessel limits of liability under OPA were amended as shown in the table below. 

If the vessel is a. . . The limits of liability 

are the greater of. . . 

Tank vessel greater than 3,000 gross tons with a single hull, 

double sides only, or double bottom only 

$3,000 per gross ton or 

$22,000,000. 

Tank vessel less than or equal to 3,000 gross tons with a 

single hull, double sides only, or double bottom only 

$3,000 per gross ton or 

$6,000,000. 

Tank vessel greater than 3,000 gross tons with a double hull $1,900 per gross ton or 

$16,000,000. 

Tank vessel less than or equal to 3,000 gross tons with a 

double hull 

$1,900 per gross ton or 

$4,000,000. 

Any vessel other than a tank vessel $950 per gross ton or 

$800,000. 

Additional amounts are also applicable under CERCLA: 

If the vessel is . . . The limits of liability 

are the greater of. . . 

Over 300 gross tons carrying hazardous substance as cargo, $300 per gross ton or 

$5,000,000. 

Any other vessel over 300 gross tons, $300 per gross ton or 

$500,000. 

Failure to establish acceptable evidence of financial responsibility, documented by a COFR, may result in 

prevention or cessation of operation, vessel detainment, denial of entry to a U.S. port, a civil penalty of up 

to $32,500 per day of violation, or seizure and forfeiture of the vessel. The law does not apply to public 

vessels. The financial responsibility requirements also do not apply to non-self-propelled barges carrying 

no oil as cargo or fuel or hazardous substances as cargo. 

The NPFC processes thousands of COFR transactions each year, including new issues, name changes, 

renewals, and revocations. 

The E-COFR Web site (www.uscg.mil/npfc/COFRs) gives enforcement officials access to COFR 

information on a daily basis. It also gives the international shipping communities the ability to submit 

COFR applications on-line and contact the COFR staff via e-mail. 
National Pollution Funds Center Mission Overview 

www.uscg.mil/npfc 16

Guidance Materials

The NPFC has an extensive library of guidance materials that provide customers with a wealth of 

information on the NPFC, its roles and missions, and funds access and use. All guidance materials are 

available online on the NPFC’s Web site at www.uscg.mil/npfc. 

 The NPFC User Reference Guide (eURG) serves as a single-source library for anyone who may 

need to gain access to the OSLTF or the portion of Superfund accessible to the Coast Guard. The 

User Reference Guide contains all of the Technical Operating Procedures (TOPs) listed below, as 

well as many other OSLTF access and financial management references. Visitors may download 

portions of the library as multiple files or may access each of its documents individually. 

 The TOPs serve as Coast Guard guidance documents for Fund users. They provide an efficient 

means to compile and submit documentation. All NPFC TOPs are consolidated in the NPFC User 

Reference Guide. A brief description of each TOPs is provided below. 

 Removal Cost TOPs provide clear guidelines to determine valid and necessary removal 

costs for a substantial threat or an actual oil discharge. 

 Resource Documentation TOPs assist FOSCs in documenting and reporting resources 

associated with removal activities. 

 State Access TOPs describe the procedures for states to access the OSLTF, including 

requirements for documenting expenses, investigative requirements, and submitting 

documents for reimbursement. 

 Designation of Source TOPs aid FOSCs in conducting investigations to identify sources of a 

substantial threat or actual discharge of oil, duly notify the RPs and their guarantors, and 

designate the source so that claimants may submit their claims to the RPs. 

 NPFC provides a number of claims guidance documents within the eURG, each one targeting a 

different type of claimant in order to meet the specific needs of each customer. 

 The Claimant’s Guide provides information to potential claimants on how to file claims and 

on what types of claims they may submit. Although it provides an overview of the entire 

claims process, it is especially targeted to those submitting claims for damage to real or 

personal property, loss of profits or earning capacity, loss of government revenues, or 

increased cost of public services. 

 The Claims Process and OSRO FAQs (Frequently Asked Questions from Oil Spill Response 

Organizations) is designed to help OSROs better understand how to submit a claim for 

uncompensated removal costs and provides suggestions for making both preparation and 

approval processes easier. 

 The Responsible Party Claim Submission Guidance explains how RPs can submit a claim 

for reimbursement of removal costs and damages that asserts either an affirmative defense or 

an entitlement to a limit on liability. 

 The NRD Funding Guidelines provide guidance to trustees in preparing and submitting 

NRD claims and to Initiate Requests to the NPFC. 

 The NPFC Certificates of Financial Responsibility Web site serves as a reference guide for Coast 

Guard field personnel and the Maritime Shipping Industry, with links to COFR and E-COFR 

applications. It is available on the COFR website at www.uscg.mil/npfc/COFRs. 

 The COFR application contains information on vessels that have been issued COFRs. This data is 

updated daily (M-F) as vessels are added or deleted from the list. 

 The E-COFR application permits users to apply for, renew, change, and pay the COFR filing fee 

via the Web.