59–006 

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 


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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, 


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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 inVerDate Sep 11 2014 05:42 Apr 26, 2016 Jkt 059006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR518.XXX HR518

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clude 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. 


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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 


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By fiscal year, in million of dollars— 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017– 

2021 

2017– 

2026 

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 estiVerDate Sep 11 2014 05:42 Apr 26, 2016 Jkt 059006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR518.XXX HR518

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mates 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, estabVerDate Sep 11 2014 05:42 Apr 26, 2016 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR518.XXX HR518

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lishes 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 


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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 


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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); 


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(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 


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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 


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13 

(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. 


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14 

(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. 

ø(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. 

ø(E)¿ (F) PIPELINES.— In the case of a pipeline, any person owning or operating the pipeline. 

ø(F)¿ (G) ABANDONMENT.— In the case of an abandoned 

vessel, onshore facility, deepwater port, pipeline, øor 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; 


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15 

(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)); 


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16 

(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)). 

* * * * * * * 

Æ 


emcdonald on DSK67QTVN1PROD with HEARING