Oil Pollution Act of 1990, United States
The Oil Pollution Act (OPA) was signed by George H. Bush in 1990, primarily in response to the Exxon Valdez oil spill in Prince William Sound, Alaska that discharged more than 10 million gallons of crude oil into the Prince William Sound. The Act was designed to expand oil spill prevention measures and to establish new requirements for oil transportation, cleanups, and response capabilities of the federal government and industry.
The OPA amends Section 311 of the Clean Water Act and the Federal Water Pollution Control Act. Amendments included: changes to federal response authority; penalty increases for oil spills; establishment of U.S. Coast Guard response organizations; mandated tank vessel and facility response plans; and the formulation of area contingency plans for selected areas. Under the OPA, the owner or operator of a facility from which oil is discharged (the responsible party) is liable for the costs associated with containment or cleanup of the spill and any damages resulting from the spill. If a responsible party is unknown or refuses to pay, an Oil Spill Liability Trust Fund will provide up to one billion dollars for any one oil pollution incident or oil spill. The trust fund receives primary revenue from a five-cent tax on every barrel of imported or domestic oil. However, the primary revenues ceased in 1994 due to a ‘sunset’ provision law.
Under the Act, the Office of Pipeline Safety (OPS) was established. The office is responsible for implementing the Oil Pollution Act for onshore pipelines. Their objective is to decrease the potential for pipeline spills, diminish environmental consequences of spills, and ensure quick response and well-planned spill cleanup. The OPS participates with the National Response Team, led by the Environmental Protection Agency (EPA) and United States Coast Guard.
The Coast Guard Maritime Transportation Act of 2004 amended portions of the Oil Pollution Act of 1990 by providing exemption liability for passive financial entities who are lessors in vessel lease financing transactions. Congress borrowed this amendment exemption from the Comprehensive Environmental Response Compensation and Liability Act (CERCLA).
Further Reading
- Holland and Knight Law Practice. Oil Pollution Act Of 1990 - New Limitations On Lessor Liability.
- U.S. Environmental Protection Agency. Oil Pollution Act Summary.