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(2) in paragraph 5(A) by inserting ‘‘, nontank 
vessel,’’ after ‘‘vessel’’; 
(3) in paragraph (5)(B), in the matter pre-
ceding clause (i), by inserting ‘‘, nontank vessels,’’ 
after ‘‘vessels’’; 
(4) in paragraph (5)(B), by redesignating 
clauses (ii) and (iii) as clauses (iii) and (iv), respec-
tively, and by inserting after clause (i) the following: 
‘‘(ii) A nontank vessel.’’; 
(5) in paragraph (5)(D)—
(A) by inserting ‘‘, nontank vessel,’’ after 
‘‘vessel’’; 
(B) by striking ‘‘and’’ after the semicolon 
at the end of clause (iii); 
(C) by striking the period at the end of 
clause (iv) and inserting ‘‘; and’’; and 
(D) by adding after clause (iv) the fol-
lowing: 
‘‘(v) for nontank vessels, consider any ap-
plicable State-mandated response plan and en-
sure consistency to the extent practicable.’’;
(6) in paragraph (5)(E), in the matter pre-
ceding clause (i), by inserting ‘‘nontank vessel,’’ 
after ‘‘vessel,’’;
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(7) 
in 
paragraph 
(5)(E)(i) 
by 
inserting 
‘‘nontank vessel,’’ , after ‘‘vessel,’’; 
(8) in paragraph (5)(F) by striking ‘‘tank ves-
sel or’’ and inserting ‘‘vessel or’’; 
(9) in paragraph (5)(G) by inserting ‘‘nontank 
vessel,’’ after ‘‘vessel,’’; 
(10) in paragraph (5)(H) by inserting ‘‘and 
nontank vessel’’ after ‘‘each tank vessel’’; 
(11) in paragraph (6) in the matter preceding 
subparagraph (A) by striking ‘‘Not later than 2 
years after the date of enactment of this section, the 
President shall require—’’ and inserting ‘‘The Presi-
dent may require—’’; 
(12) in paragraph (6)(B) by inserting ‘‘, and 
nontank vessels carrying oil of any kind as fuel for 
main propulsion,’’ after ‘‘cargo’’; and 
(13) in paragraph (7) by inserting ‘‘, nontank 
vessel,’’ after ‘‘vessel’’. 
(c) IMPLEMENTATION DATE.—The President shall 
not require the owner or operator of a nontank vessel (as 
defined section 311(j)(9) of the Federal Water Pollution 
Control Act (33 U.S.C. 1321(j)(9), as amended by this 
section) to prepare and submit a vessel response plan for 
such vessel before the end of the one-year period beginning 
on the date of the enactment of this Act.
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SEC. 702. REQUIREMENTS FOR TANK LEVEL AND PRES-
SURE MONITORING DEVICES. 
Section 4110 of the Oil Pollution Act of 1990 (46 
U.S.C. 3703 note) is amended—
(1) in subsection (a), by striking ‘‘Not later 
than 1 year after the date of the enactment of this 
Act, the Secretary shall’’ and inserting ‘‘The Sec-
retary may’’; 
(2) in subsection (b)—
(A) by striking ‘‘Not later than 1 year 
after the date of the enactment of this Act, the 
Secretary shall’’ and inserting ‘‘No sooner than 
1 year after the Secretary prescribes regula-
tions under subsection (a), the Secretary may’’; 
and 
(B) by striking ‘‘the standards’’ and in-
serting ‘‘any standards’’. 
SEC. 703. LIABILITY AND COST RECOVERY. 
(a) DEFINITION OF OWNER OR OPERATOR.—Section 
1001(26) of the Oil Pollution Act of 1990 (33 U.S.C. 
2701(26)) is amended to read as follows: 
‘‘(26) ‘owner or operator’—
‘‘(A) means— 
‘‘(i) in the case of a vessel, any person 
owning, operating, or chartering by demise, 
the vessel;
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‘‘(ii) in the case of an onshore or off-
shore facility, any person owning or oper-
ating 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 con-
trolled activities at such facility imme-
diately beforehand; 
‘‘(v) notwithstanding subparagraph 
(B)(i), 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 con-
trol of which was acquired involuntarily 
through 
bankruptcy, 
tax 
delinquency, 
abandonment, or other circumstances in 
which the government involuntarily ac-
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quires title by virtue of its function as sov-
ereign; and 
‘‘(vi) notwithstanding subparagraph 
(B)(ii), a person that is a lender and that 
holds indicia of ownership primarily to pro-
tect a security interest in a vessel or facil-
ity if, while the borrower is still in posses-
sion of the vessel or facility encumbered by 
the security interest, the person—
‘‘(I) 
exercises 
decisionmaking 
control over the environmental compli-
ance related to the vessel or facility, 
such that the person has undertaken 
responsibility for oil handling or dis-
posal 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 re-
sponsibility—
‘‘(aa) for the overall man-
agement of the vessel or facility 
encompassing 
day-to-day 
deci-
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sionmaking with respect to envi-
ronmental compliance; or 
‘‘(bb) over all or substan-
tially all of the operational func-
tions (as distinguished from fi-
nancial or administrative func-
tions) of the vessel or facility 
other than the function of envi-
ronmental compliance; and 
‘‘(B) does not include—
‘‘(i) a unit of State or local govern-
ment that acquired ownership or control of 
a vessel or facility involuntarily through 
bankruptcy, tax delinquency, abandonment, 
or other circumstances in which the gov-
ernment involuntarily acquires title by vir-
tue 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 own-
ership primarily to protect the security in-
terest of the person in the vessel or facil-
ity; or 
‘‘(iii) a person that is a lender that 
did not participate in management of a
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vessel or facility prior to foreclosure, not-
withstanding 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 activi-
ties, winds up operations, undertakes 
a removal action under 311(c) of the 
Federal Water Pollution Control Act 
(33 U.S.C. 311(c)) or under the direc-
tion of an on-scene coordinator ap-
pointed under the National Contin-
gency 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 dis-
position, 
if the person seeks to sell, re-lease (in the 
case of a lease finance transaction), or oth-
erwise divest the person of the vessel or fa-
cility at the earliest practicable, commer-
cially reasonable time, on commercially 
reasonable terms, taking into account mar-
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ket conditions and legal and regulatory re-
quirements;’’. 
(b) OTHER DEFINITIONS.—Section 1001 of the Oil 
Pollution Act of 1990 (33 U.S.C. 2701) is amended by 
striking ‘‘and’’ after the semicolon at the end of paragraph 
(36), by striking the period at the end of paragraph (37) 
and inserting a semicolon, and by adding at the end the 
following: 
‘‘(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 ca-
pacity 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 ex-
tension of credit, or in a contract or secu-
rity agreement relating to the extension, a 
covenant, warranty, or other term or con-
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dition that relates to environmental compli-
ance; 
‘‘(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 dis-
charge or substantial threat of a discharge 
of oil in connection with the vessel or facil-
ity prior to, during, or on the expiration of 
the term of the extension of credit; 
‘‘(vii) providing financial or other ad-
vice 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 se-
curity interest, exercising forbearance; 
‘‘(ix) exercising other remedies that 
may be available under applicable law for 
the breach of a term or condition of the ex-
tension of credit or security agreement; or
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‘‘(x) conducting a removal action 
under 311(c) of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1321(c)) or 
under the direction of an on-scene coordi-
nator appointed under the National Con-
tingency Plan, 
if such actions do not rise to the level of partici-
pating in management under subparagraph (A) 
of this paragraph and paragraph (26)(A)(vi); 
‘‘(39) ‘extension of credit’ has the meaning pro-
vided in section 101(20)(G)(i) of the Comprehensive 
Environmental Response, Compensation and Liabil-
ity 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, Com-
pensation 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, Compensa-
tion and Liability Act of 1980 (42 U.S.C. 
9601(20)(G)(iii)); 
‘‘(42) ‘lender’ has the meaning provided in sec-
tion 101(20)(G)(iv) of the Comprehensive Environ-
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mental 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 Comprehen-
sive Environmental Response, Compensation and Li-
ability Act of 1980 (42 U.S.C. 9601(20)(G)(v)); and 
‘‘(44) ‘security interest’ has the meaning pro-
vided in section 101(20)(G)(vi) of the Comprehen-
sive Environmental Response, Compensation and Li-
ability Act of 1980 (42 U.S.C. 9601(20)(G)(vi)).’’. 
(c) DEFINITION OF CONTRACTUAL RELATIONSHIP.—
Section 1003 of the Oil Pollution Act of 1990 (33 U.S.C. 
2703) is amended by adding at the end the following: 
‘‘(d) DEFINITION
OF
CONTRACTUAL
RELATION-
SHIP.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(3) the term ‘contractual relationship’ includes, 
but is not limited to, land contracts, deeds, ease-
ments, leases, or other instruments transferring title 
or possession, unless—
‘‘(A) the real property on which the facility 
concerned is located was acquired by the re-
sponsible party after the discharge of the oil on, 
in, or at the facility;
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‘‘(B) one or more of the circumstances de-
scribed in subparagraph (A), (B), or (C) of 
paragraph (2) is established by the responsible 
party by a preponderance of the evidence; and 
‘‘(C) the responsible party complies with 
paragraph (3). 
‘‘(2) 
REQUIRED
CIRCUMSTANCE.—The 
cir-
cumstances referred to in paragraph (1)(B) are the 
following: 
‘‘(A) At the time the responsible party ac-
quired the real property on which the facility is 
located the responsible party did not know and 
had no reason to know that oil that is the sub-
ject of the discharge or substantial threat of 
discharge was located on, in, or at the facility.
‘‘(B) The responsible party is a govern-
ment entity that acquired the facility—
‘‘(i) by escheat; 
‘‘(ii) through any other involuntary 
transfer or acquisition; or 
‘‘(iii) through the exercise of eminent 
domain authority by purchase or con-
demnation. 
‘‘(C) The responsible party acquired the 
facility by inheritance or bequest.
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‘‘(i) on or before the date on which 
the responsible party acquired the real 
property on which the facility is located, 
the responsible party carried out all appro-
priate inquiries, as provided in subpara-
graphs (B) and (D), into the previous own-
ership and uses of the real property on 
which the facility is located in accordance 
with generally accepted good commercial 
and customary standards and practices; 
and 
‘‘(ii) the responsible party took rea-
sonable steps to—
‘‘(I) stop any continuing dis-
charge; 
‘‘(II) prevent, minimize or miti-
gate any substantial threat of dis-
charge; and 
‘‘(III) 
prevent 
or 
limit 
any 
human, environmental, or natural re-
source exposure to any previously dis-
charged oil. 
‘‘(B) REGULATIONS ESTABLISHING STAND-
ARDS AND PRACTICES.—Not later than 2 years 
after the date of the enactment of this para-
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graph, the Secretary, in consultation with the 
Administrator of the Environmental Protection 
Agency, shall by regulation establish standards 
and practices for the purpose of satisfying the 
requirement to carry out all appropriate inquir-
ies under subparagraph (A). 
‘‘(C) CRITERIA.—In promulgating regula-
tions that establish the standards and practices 
referred to in subparagraph (B), the Secretary 
shall include in such standards and practices 
provisions regarding each of the following: 
‘‘(i) The results of an inquiry by an 
environmental professional. 
‘‘(ii) Interviews with past and present 
owners, operators, and occupants of the fa-
cility and the real property on which the 
facility is located for the purpose of gath-
ering information regarding the potential 
for contamination at the facility and on the 
real property on which the facility is lo-
cated. 
‘‘(iii) Reviews of historical sources, in-
cluding, to the extent available, chain of 
title documents, aerial photographs, build-
ing department records, and land use
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records, to determine previous uses and oc-
cupancies of the real property on which the 
facility is located since the property was 
first developed. 
‘‘(iv) Searches for recorded environ-
mental cleanup liens against the facility 
and the real property on which the facility 
is located that are filed under Federal, 
State, or local law. 
‘‘(v) Reviews of Federal, State, and 
local government records, waste disposal 
records, underground storage tank records, 
and waste handling, generation, treatment, 
disposal, and spill records, concerning con-
tamination at or near the facility and on 
the real property on which the facility is 
located. 
‘‘(vi) Visual inspections of the facility, 
the real property on which the facility is 
located, and adjoining properties. 
‘‘(vii) Specialized knowledge or experi-
ence on the part of the responsible party. 
‘‘(viii) The relationship of the pur-
chase price to the value of the facility and 
the real property on which the facility is
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located, if the facility or the real property 
was not contaminated. 
‘‘(ix) Commonly known or reasonably 
ascertainable information about the facility 
and the real property on which the facility 
is located. 
‘‘(x) The degree of obviousness of the 
presence or likely presence of contamina-
tion at the facility and on the real property 
on which the facility is located, and the 
ability to detect contamination by appro-
priate investigation. 
‘‘(D) INTERIM
STANDARDS
AND
PRAC-
TICES.—
‘‘(i) REAL PROPERTY PURCHASED BE-
FORE MAY 31, 1997.—With respect to real 
property purchased before May 31, 1997, 
in making a determination with respect to 
a responsible party described in subpara-
graph (A), a court or appropriate official 
shall take into account—
‘‘(I) any specialized knowledge or 
experience on the part of the respon-
sible party;
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‘‘(II) the relationship of the pur-
chase price to the value of the facility 
and the real property on which the fa-
cility is located, if the facility or the 
real property was not contaminated; 
‘‘(III) commonly known or rea-
sonably 
ascertainable 
information 
about the facility and the real prop-
erty on which the facility is located; 
‘‘(IV) the obviousness of the 
presence or likely presence of contami-
nation at the facility and on the real 
property on which the facility is lo-
cated; and 
‘‘(V) the ability of the responsible 
party to detect contamination by ap-
propriate inspection. 
‘‘(ii) REAL PROPERTY PURCHASED ON 
OR AFTER MAY 31, 1997.—With respect to 
real property purchased on or after May 
31, 1997, until the Secretary promulgates 
the regulations described in clause (ii), the 
procedures of the American Society for 
Testing and Materials, including the docu-
ment known as ‘Standard E1527–97’, enti-
100
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tled ‘Standard Practice for Environmental 
Site Assessment: Phase I Environmental 
Site Assessment Process’, shall satisfy the 
requirements in subparagraph (A). 
‘‘(E) 
SITE
INSPECTION
AND
TITLE 
SEARCH.—In the case of real property for resi-
dential use or other similar use purchased by a 
nongovernmental or noncommercial entity, in-
spection and title search of the facility and the 
real property on which the facility is located 
that reveal no basis for further investigation 
shall be considered to satisfy the requirements 
of this paragraph. 
‘‘(5) PREVIOUS OWNER OR OPERATOR.—Noth-
ing in this paragraph or in section 1003(a)(3) shall 
diminish the liability of any previous owner or oper-
ator of such facility who would otherwise be liable 
under this Act. Notwithstanding this paragraph, if a 
responsible party obtained actual knowledge of the 
discharge or substantial threat of discharge of oil at 
such facility when the responsible party owned the 
facility and then subsequently transferred ownership 
of the facility or the real property on which the facil-
ity is located to another person without disclosing 
such knowledge, the responsible party shall be treat-
101
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ed as liable under 1002(a) and no defense under sec-
tion 1003(a) shall be available to such responsible 
party. 
‘‘(6) LIMITATION
ON
DEFENSE.—Nothing in 
this paragraph shall affect the liability under this 
Act of a responsible party who, by any act or omis-
sion, caused or contributed to the discharge or sub-
stantial threat of discharge of oil which is the sub-
ject of the action relating to the facility.’’.
SEC. 704. OIL SPILL RECOVERY INSTITUTE. 
(a) TERMINATION OF FUNDING FOR INSTITUTE.—
Section 5001(i) of the Oil Pollution Act of 1990 (33 
U.S.C. 2731(i)) is amended by striking ‘‘September 30, 
2012’’ and inserting ‘‘one year after the Secretary of the 
department in which the Coast Guard is operating, in con-
sultation with the Secretary of the Interior, determines 
that oil and gas exploration, development, and production 
in Alaska have ceased’’. 
(b) USE OF FUNDING FOR SECTION 1012 OF OPA.—
Subsection (c) of section 5006 of the Oil Pollution Act 
of 1990, as added by section 1102(b)(4) of Public Law 
104–324 (110 Stat. 3965; 33 U.S.C. 2736(c)), is amended 
by striking ‘‘with the eleventh year following the date of 
enactment of the Coast Guard Authorization Act of 
1996,’’ and inserting ‘‘one year after the Secretary of the
102
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department in which the Coast Guard is operating, in con-
sultation with the Secretary of the Interior, determines 
that oil and gas exploration, development, and production 
in Alaska have ceased,’’.
SEC. 705. ALTERNATIVES. 
Section 4115(e)(3) of the Oil Pollution Act of 1990 
(46 U.S.C. 3703a note) is amended to read as follows: 
‘‘(3) No later than one year after the date of 
enactment of the Coast Guard and Maritime Trans-
portation Act of 2003, the Secretary shall, taking 
into account the recommendations contained in the 
report by the Marine Board of the National Re-
search Council entitled ‘Environmental Performance 
of Tanker Design in Collision and Grounding’ and 
dated 2001, establish and publish an environmental 
equivalency evaluation index (including the method-
ology to develop that index) to assess overall outflow 
performance due to collisions and groundings for 
double hull tank vessels and alternative hull de-
signs.’’.
Passed the House of Representatives November 5, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.