Brian Barton
The Oil Pollution Act of 1990 (OPA) was passed by the 101st United States Congress and signed by President George H. W. Bush. It was a significant piece of legislation that transformed how the US responded to oil spills. The OPA addressed critical issues such as liability, damages, and regulatory changes, enforcing the removal of spilled oil and assigning liability for cleanup costs. The act also established a trust fund financed by a tax on oil to cover cleanup expenses when the responsible party is unwilling or unable to pay. The journey to passing the OPA began in 1989, with amendments made by the Committee on Merchant Marine and Fisheries, and the final version was passed unanimously in August 1990.
| Characteristics | Values |
|---|---|
| Year | 1990 |
| Date Enacted | August 18, 1990 |
| Signed By | President George H. W. Bush |
| Purpose | To avoid oil spills from vessels and facilities |
| Method | Enforcement of removal of spilled oil and assigning liability for cleanup and damage costs |
| Requirements | Specific operating procedures, definition of responsible parties, financial liability, processes for measuring damages, establishment of a fund |
| Trust Fund | Oil Spill Liability Trust Fund |
| Previous Law | Oil Pollution Act of 1973 |
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What You'll Learn
The Oil Pollution Act of 1990 (OPA)
The OPA works to prevent oil spills from vessels and facilities by enforcing the removal of spilled oil and assigning liability for the cost of cleanup and damage. It requires specific operating procedures and defines responsible parties and financial liability. The Act also implements processes for measuring damages and specifies the damages for which violators are liable. Additionally, it establishes a fund for damages, cleanup, and removal costs, known as the Oil Spill Liability Trust Fund. This fund is financed by a tax on oil and is available to cover the costs of cleaning up spills when the responsible party is incapable or unwilling to do so.
The OPA requires oil storage facilities and vessels to submit plans to the Federal government detailing how they will respond to large discharges of oil. The Environmental Protection Agency (EPA) has published regulations for above-ground storage facilities, while the Coast Guard has done so for oil tankers. The Act also requires the development of Area Contingency Plans to prepare and plan for oil spill response on a regional scale, with the Office of Emergency Management (OEM) working to prevent accidents and maintain superior response capabilities.
The Oil Pollution Act of 1990 represented a significant shift in how the United States addressed oil spills, consolidating previous laws and updating and strengthening the government's ability to respond to environmental disasters. It has resulted in instrumental changes in the oil production, transportation, and distribution industries, with far-reaching impacts on the protection of natural habitats and wildlife.
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The Act's legislative history
The legislative history of the Oil Pollution Act (OPA) of 1990 can be traced back to the Torrey Canyon spill and the Santa Barbara oil spill in 1969, which brought oil pollution into the public spotlight and led to the signing of the National Environmental Policy Act and the creation of the U.S. Environmental Protection Agency (EPA) in 1970. The Clean Water Act, passed in 1972, set the basic structure for regulating discharges of pollutants into U.S. waters.
In the decades that followed, several other laws dealing with oil spill liability and compensation were passed, including the Ports and Waterways Safety Act of 1972, the Trans-Alaska Pipeline Authorization Act of 1973, the Deep Water Port Act of 1974, the Outer Continental Shelf Lands Act of 1978, and the Alaska Oil Spill Commission of 1990. These laws laid the groundwork for addressing oil spills and their impact on the environment.
The Exxon Valdez oil spill in 1989 and other spills in 1989 and 1990 further highlighted the need for comprehensive oil spill legislation. On March 16, 1989, H.R. 1465, the Oil Pollution Act of 1990, was introduced in the House of Representatives. The bill was passed by the House of Representatives on November 9, 1989, and by the Senate on November 19, 1989, with revisions.
A conference committee was created on August 2, 1990, to resolve the differences between the House and Senate versions of the bill. On August 4, 1990, both chambers of Congress passed the bill in identical form. The Oil Pollution Act was officially enacted on August 18, 1990, when it was signed by President George H. W. Bush.
The OPA of 1990 strengthened the EPA's ability to prevent and respond to catastrophic oil spills. It enforced the removal of spilled oil, assigned liability for cleanup and damage costs, defined responsible parties, and established a fund for damages, cleanup, and removal expenses. The Act also required oil storage facilities and vessels to submit plans outlining their response to large discharges and the development of Area Contingency Plans for regional oil spill response preparation.
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Defining responsible parties
The Oil Pollution Act (OPA) of 1990 was passed by the 101st United States Congress and signed by President George H. W. Bush. The Act defines a responsible party as one who is found accountable for the discharge or substantial threat of discharge of oil from a vessel or facility into navigable waters, exclusive economic zones, or the shorelines of such covered waters.
A responsible party is liable for the removal costs and damages resulting from an oil spill incident under the OPA. The liability limitations established by the OPA are based on the type of vessel or facility involved and the amount of oil discharged. The OPA also expanded the class of persons authorized to recover removal costs from the responsible party to "'any person' who has incurred removal costs in connection with an oil discharge. This includes the United States, affected states, Indian tribes, and any person who has undertaken removal actions pursuant to the National Contingency Plan.
In the OPA, the Coast Guard is responsible for screening the application process for vessels, while the Bureau of Ocean Energy Management (BOEM) in the Department of the Interior implements and enforces all the act's regulations for offshore oil facilities. Under the OPA, responsible parties are mandated to provide evidence declaring financial responsibility of $150 million for potential liability. If a party is unable to provide this evidence, they will be subject to a penalty of $25,000 per day in violation of the OPA and may also be subject to a judicial decision to terminate all operations.
The OPA also allows for additional liability enacted by other relevant state laws. Under the Act, federal, tribal, state, and any other person can recover removal costs from a responsible party so long as such an entity has incurred costs from carrying out oil removal activities in accordance with the Clean Water Act. In some instances, claims for removal cost reimbursement can be initially brought to the Oil Spill Liability Trust Fund, sidestepping the responsible party.
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Limitations on liability
The Oil Pollution Act (OPA) of 1990 was passed by the 101st United States Congress and signed by President George H. W. Bush. The act assigns liability for the cost of cleanup and damage following an oil spill. It also requires specific operating procedures, defines responsible parties and financial liability, and establishes a fund for damages, cleanup, and removal costs.
The OPA was introduced in the House of Representatives on March 16, 1989, as H.R. 1465. It was passed by a vote in the House of Representatives on November 9, 1989, and by the Senate ten days later, albeit with revisions. The bill was then sent back to the House of Representatives, which did not agree to the Senate's revisions. A conference committee was created on August 2, 1990, to resolve differences and propose a final bill for approval.
The OPA holds responsible parties liable for removal costs and natural resource damages resulting from any discharge of oil, including a substantial threat of discharge, to Waters of the United States (WOTUS) and adjoining shorelines. This includes not only costs incurred by the federal government but also costs or damages to private parties, such as damages for the loss of personal property and loss of revenues/profits due to injury. Unlike liability for removal costs, which are uncapped, liability for damages is limited.
The OPA also allows for additional liability enacted by other relevant state laws. Federal, tribal, state, and any other person can recover removal costs from a responsible party so long as such an entity has incurred costs from carrying out oil removal activities in accordance with the Clean Water Act. In some instances, claims for removal cost reimbursement can be initially brought to the Oil Spill Liability Trust Fund, which is financed by a tax on oil. When claims for removal cost reimbursement are brought to the fund, the claimant must prove that removal costs were sustained from activities required to avoid or alleviate the effects of the incident and that such actions were approved or directed by the federal on-scene coordinator.
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The Act's impact on the oil industry
The Oil Pollution Act (OPA) of 1990 has had a significant impact on the oil industry in the United States. The Act was passed in response to a series of oil spills and was designed to strengthen the government's ability to prevent and respond to such incidents.
One of the key impacts of the OPA on the oil industry is the enforcement of oil spill removal and the assignment of liability for cleanup costs and damages. The Act holds responsible parties strictly, jointly, and severally liable for these costs. This includes vessel owners and operators, who are now liable for all incident-related costs, rather than just the costs up to the post-incident value of their vessel as was previously the case under the Limitation of Liability Act of 1851. The OPA also establishes a trust fund financed by a tax on oil to cover cleanup costs when the responsible party is incapable or unwilling to pay.
The OPA has also led to the development of more stringent operating procedures and regulations for the oil industry. Oil storage facilities and vessels are now required to submit plans to the Federal government detailing how they will respond to large discharges of oil. The Environmental Protection Agency (EPA) and the Coast Guard have published regulations for aboveground storage facilities and oil tankers, respectively. The Act also requires the development of Area Contingency Plans to prepare for oil spill response on a regional scale, with the Office of Emergency Management (OEM) playing a key role in prevention and response capabilities.
Another impact of the OPA on the oil industry is the potential for unlimited liability, which has made it difficult for vessel operators and owners to obtain insurance agreements for financial liability. This, in turn, has resulted in vessels being unable to legally enter U.S. waters without proof of financial liability. The OPA's rigorous offshore facility provisions have also directly impacted the domestic oil production industry.
Overall, the OPA has resulted in significant changes to the oil production, transportation, and distribution industries in the United States, with improved prevention and response capabilities for oil spills.
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Frequently asked questions
The Oil Pollution Act of 1990 was passed by the 101st United States Congress and signed by President George H. W. Bush. The act works to avoid oil spills from vessels and facilities by enforcing the removal of spilled oil and holding the responsible party accountable for the cost of cleanup and any resulting damages.
The Oil Pollution Act was passed in response to several oil spills, including the Exxon Valdez spill in 1989, and the Santa Barbara spill in 1969. These spills caused significant damage to the environment and led to a public outcry for stronger legislation to prevent and respond to oil spills.
The Oil Pollution Act requires oil storage facilities and vessels to submit plans to the Federal government detailing how they will respond to large discharges of oil. It also establishes a trust fund financed by a tax on oil to clean up spills when the responsible party is unwilling or incapable of doing so. The act defines responsible parties and financial liability, and specifies the damages for which violators are liable.
