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[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)).

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