Oil Spills in U.S. Coastal Waters: Background,
Governance, and Issues for Congress
Jonathan L. Ramseur
Analyst in Environmental Policy
August 27, 2009
Congressional Research Service
7-5700
www.crs.gov
RL33705
CRS Report for Congress
P
repared for Members and Committees of Congress
Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
Summary
During the past two decades, while U.S. oil imports and consumption have steadily risen, oil spill
incidents and the volume of oil spilled have not followed a similar course. In general, the annual
number and volume of oil spills have shown declines—in some cases, dramatic declines. The
1989 Exxon Valdez spill in Alaskan waters played a large role in stimulating actions that
contributed to this trend, particularly the decrease in the annual spill volumes. The Exxon Valdez
spill highlighted the need for stronger legislation, inflamed public sentiment, and spurred
Congress to enact comprehensive oil spill legislation, resulting in the Oil Pollution Act of 1990
(P.L. 101-380). This law expanded and clarified the authority of the federal government and
created new oil spill prevention and preparedness requirements. Moreover, the 1990 legislation
strengthened existing liability provisions, providing a greater deterrent against spills. After 1990,
spill volume from oil tankers, the vessels that carry and have spilled the most oil, decreased
significantly.
Considering that U.S. oil consumption and oil imports have steadily increased, the trend of
declining spill incidents and volume in past years is noteworthy. Yet, recent annual data indicate
that the overall decline of annual spill events may have stopped. Although Energy Information
Administration projections indicate that oil imports are expected to decline in coming years, the
United States is projected to continue importing a substantial percentage of the oil it consumes.
The threat of oil spills raises the question of whether U.S. officials have the necessary resources
at hand to respond to a major spill. There is some concern that the favorable U.S. spill record has
resulted in a loss of experienced personnel, capable of responding quickly and effectively to a
major oil spill.
Prior to actions by the 109th and 110th Congresses, the Oil Spill Liability Trust Fund was
particularly vulnerable to a large and costly spill: Fund managers had projected the fund would be
completely depleted by FY2009. Recent legislative developments have increased the oil spill
liability limits and raised the tax rate that feeds into the trust fund. With these changes in effect,
the most recent projection indicates that the fund will reach almost $1.5 billion by the end of
FY2009 and crest $3.5 billion by FY2016. Although the trust fund is now less vulnerable to a
major spill, some degree of exposure still remains, thus raising a central policy debate: How
should policymakers allocate the costs associated with a major, accidental oil spill? For example,
what share of costs should be borne by the responsible party (e.g., oil vessel owner/operators), the
oil industry, and the general treasury?
No oil spill is entirely benign. Even a relatively minor spill, depending on the timing and location,
can cause significant harm to individual organisms and entire populations. Marine mammals,
birds, bottom-dwelling and intertidal species, and organisms in early developmental stages—eggs
or larvae—are especially vulnerable to a nearby spill. However, the effects of oil spills can vary
greatly. Oil spills can cause impacts over a range of time scales, from only a few days to several
years, or even decades in some cases.
This report reviews the history and trends of oil spills in the United States; identifies the legal
authorities governing oil spill prevention, response, and cleanup; and examines the threats of
future oil spills in U.S. coastal waters.
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
Contents
Introduction ................................................................................................................................ 1
Background ................................................................................................................................ 1
Oil Spills in U.S. Coastal Waters ........................................................................................... 1
Impacts of Oil Spills in Aquatic Environments ...................................................................... 3
Acute Impacts ................................................................................................................. 4
Chronic Impacts.............................................................................................................. 4
Ecosystem Recovery ....................................................................................................... 5
Economic Costs of Oil Spills................................................................................................. 5
Cleanup Costs ................................................................................................................. 5
Natural Resources Damages ............................................................................................ 6
Other Economic Costs..................................................................................................... 7
Oil Spill Governance................................................................................................................... 7
Federal Authorities: Before and After the Exxon Valdez Spill ................................................. 7
Oil Pollution Act of 1990 ................................................................................................ 9
Other Federal Laws....................................................................................................... 13
International Conventions ................................................................................................... 15
MARPOL 73/78............................................................................................................ 16
Intervention Convention................................................................................................ 16
Federal Agencies Responsibilities ....................................................................................... 17
Response ...................................................................................................................... 17
Prevention and Preparedness ......................................................................................... 17
Federal Funding for the Oil Spill Liability Trust Fund ......................................................... 18
Background .................................................................................................................. 19
Trust Fund Ceiling ........................................................................................................ 19
Fund Projections ........................................................................................................... 20
Fund Vulnerability ........................................................................................................ 20
Addressing Vulnerability............................................................................................... 21
Considerations for Policymakers ................................................................................... 21
State Laws .......................................................................................................................... 23
Threat of Future Oil Spills in U.S. Coastal Waters ..................................................................... 24
Possibilities for Future Oil Spills......................................................................................... 24
U.S. Oil Imports and Possible Spills .............................................................................. 26
Domestic Oil Transportation and Possible Spills............................................................ 28
Level of Preparedness ......................................................................................................... 29
Figures
Figure 1. Volume and Number of Oil Spills for Incidents Above 100 Gallons in U.S.
Coastal Waters, 1973-2004....................................................................................................... 2
Figure 2. Volume of Oil Spilled from Vessels into U.S. Coastal Waters, 1980-2004 ..................... 3
Figure 3. Projected Annual Balances for the Oil Spill Liability Trust Fund: FY2009-
FY2016.................................................................................................................................. 20
Figure 4. U.S. Petroleum Imports and Consumption: 1990-2005 (Actual) and 2010-2025
(Projected) ............................................................................................................................. 25
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
Figure 5. Volume and Number of Oil Spills for Incidents Above 100 Gallons in U.S.
Coastal Waters, 1995-2004..................................................................................................... 26
Figure 6. U.S. Petroleum Imports by Mode of Transportation (1995-2007) ................................ 27
Figure 7. Average Annual Distribution of U.S. Oil Imports by Geographic Region .................... 28
Figure 8. Domestic Transportation of Crude Oil and Petroleum Products by Mode, 1990-
2004 ...................................................................................................................................... 29
Figure A-1. Percentage Contribution of Oil Inputs into North American Coastal Waters,
by Major Source Categories (based on average annual releases, 1990-1999)........................... 31
Figure A-2. Volume of Oil Spills into U.S. Coastal Waters from Facilities and Pipelines,
1980-2004.............................................................................................................................. 32
Figure A-3. Annual Number of Spills to U.S. Waters from Facilities and Pipelines, 1980-
2004 ...................................................................................................................................... 33
Figure A-4. Annual Oil Spill Volume for Spills Greater than 50 Gallons from Oil
Exploration and Extraction Activities in Federal Waters on the Outer Continental Shelf
(1985-2007) ........................................................................................................................... 35
Tables
Table 1. Federal Agency Jurisdiction for Oil Spill Prevention and Preparedness Duties, by
Source.................................................................................................................................... 18
Appendixes
Appendix. Additional Statistical Information Regarding Oil Spills............................................. 31
Contacts
Author Contact Information ...................................................................................................... 36
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
Introduction
Oil is the dominant source of energy in the United States, supplying the nation with
approximately 40% of its energy needs. Its use is widespread, providing fuel for the
transportation, industrial, and residential sectors. Vast quantities of oil continuously enter the
country via vessel or pipeline and are then transported to destinations throughout the nation. With
such widespread use and nonstop movement, it is inevitable that some number of spills will
occur. One continuing policy issue is whether the nation has the necessary resources and
personnel in place to respond to a major spill.
Several major U.S. oil spills have had lasting repercussions that transcended the local
environmental and economic effects. The most notable example is the 1989 Exxon Valdez spill,
which released approximately 11 million gallons of crude oil into Prince William Sound, Alaska.
The Exxon Valdez spill—the largest and most expensive oil spill in U.S. waters to date1—
produced extensive consequences beyond Alaska. According to the National Academies of
Science, the Exxon Valdez disaster caused “fundamental changes in the way the U.S. public
thought about oil, the oil industry, and the transport of petroleum products by tankers ... ‘big oil’
was suddenly seen as a necessary evil, something to be feared and mistrusted.”2
This report focuses on oil spills3 in U.S. coastal waters.4 The first section highlights background
issues, including oil spill statistics and potential environmental impacts. The second section
discusses the legal framework that governs oil spill prevention and response. The third section
examines the threat of future oil spills in coastal waters and whether response personnel are
prepared to respond to a major spill. The final section highlights recent legislative activity.
Background
Oil Spills in U.S. Coastal Waters
While U.S. oil imports and consumption have steadily risen, oil spill incidents and volume spilled
have not followed a similar course. (See Figure 1.) In general, oil spill events and the volume of
oil released have declined over the past two decades; in some years, the declines have been
dramatic. Note that this figure does not include data from 2005, described in the text box below.
1 Note that the Exxon Valdez spill ranks only 35th for spill volume on the list of international tanker spills since 1967.
See International Tanker Owners Pollution Federation Limited, Historical Data, at http://www.itopf.com/stats.html.
2 See National Research Council (NRC), Oil in the Sea III: Inputs, Fates, and Effects, National Academies of Science
(hereinafter “NRC report”), February 2003, p. 11.
3 In this report, “oil” refers to crude oil and petroleum products, including gasoline and other fuels, unless stated
otherwise.
4 For the purposes of this report, “U.S. coastal waters” is defined broadly to encompass all waters between the shore
and the boundary of the U.S. exclusive economic zone (200 nautical miles from shore). Note that in other documents,
“coastal” may refer only to state waters, but in this report, the term “coastal waters” includes state and federally
regulated waters.
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Spills Associated with Hurricanes Katrina and Rita (2005)
As of the date of this report, the Coast Guard database did not include 2005 spill data. However, there was a
substantial increase in spill volume in 2005, due to spills associated with Hurricanes Katrina and Rita. The Minerals
Management Service (MMS) summary of hurricane incidents includes the following:
• More than 8 million gallons of oil from aboveground oil storage facilities; however, 50% was reported recovered,
and it is unknown has much of the remaining volume impacted coastal waters;
• Over 600,000 gallons (including an estimated 84,000 gallons from one platform incident) were spilled from
federal offshore oil platforms and associated pipelines;
• Approximately 3.3 million gallons were spilled from a tank barge, when it struck a submerged oil platform that
had been damaged during the storms.
MMS, Petroleum Spills of One Barrel and Greater from Federal Outer Continental Shelf Facilities Resulting from Damages
Caused by 2005 Hurricanes Katrina and Rita Including Post-Hurricane Seepage through December 2007 (revised June 23,
2008), at http://www.mms.gov/incidents/.
Figure 1. Volume and Number of Oil Spills for Incidents
Above 100 Gallons in U.S. Coastal Waters, 1973-2004
N
25,000,000
4,000
u
mb
20,000,000
3,000
e
15,000,000
r o
llons
2,000
a
10,000,000
f S
G
p
5,000,000
1,000
il
ls
-
-
73
75
77
79
81
83
85
87
89
91
93
95
97
99
01
03
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
Total Volume
Spill Incidents
Source: Prepared by CRS with data from the United States Coast Guard (USCG) Oil Spill Compendium,
available at http://homeport.uscg.mil.
The decline of spill incidents is likely related, at least in part, to international oil pollution
standards that went into effect in 1983. These new standards were implemented in the United
States by the Act to Prevent Pollution from Ships.5
The substantial drop in the annual spill volume is most attributable to the decline in volume
spilled by oil tankers and barges—the vessels that transport oil and have historically spilled the
most oil. As shown in Figure 2, the volume of oil spilled from vessels in U.S. waters in the 1990s
differed dramatically from the volume spilled in the 1980s. The Exxon Valdez spill of 1989 and
the resulting Oil Pollution Act of 1990 (OPA) played key roles in the subsequent spill volume
reduction. The 1990 Act (discussed below) made comprehensive changes to U.S. oil pollution law
by expanding federal response authority and increasing spill liability. The high costs associated
5 P.L. 96-478, 33 U.S.C. 1901, et seq. These standards and the U.S. law are discussed later in this report.
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
with the Exxon Valdez spill,6 and the threat of broad liability imposed by OPA (in some scenarios,
unlimited liability), have likely been the central drivers for the spill volume decline seen in the
1990s.
In addition to international and federal governance, 28 states had oil spill liability laws, 19 of
which imposed unlimited liability, before the Exxon Valdez spill occurred in 1989.7 After the 1989
spill, some states enacted additional legislation,8 which may have contributed to the declines.
Figure 2. Volume of Oil Spilled from Vessels into U.S. Coastal Waters, 1980-2004
Source: Prepared by CRS with data from the USCG Oil Spill Compendium.
The Appendix to this report contains additional information, including a further breakdown of oil
inputs in coastal waters by source category. The Appendix also provides oil spill data and
analysis specific to onshore facilities and pipelines, as well as offshore oil extraction operations.
Impacts of Oil Spills in Aquatic Environments
No oil spill is entirely benign. Depending on timing and location, even a relatively minor spill can
cause significant harm to individual organisms and entire populations.9 Oil spills can cause
impacts over a range of time scales, from days to years, or even decades for certain spills. Impacts
are typically divided into acute (short-term) and chronic (long-term) effects. Both types are part
6 Exxon has so far paid approximately $3 billion for the spill: $2 billion for cleanup activities and $900 million in a
civil settlement for natural resource damages. In June 2006, parties filed for an additional $92 million for damages per
a reopener provision in the civil settlement. On June 25, 2008, the Supreme Court ruled on punitive damages, an issue
that had been in the court system for more than a decade. The Court awarded damages of $507 million (a 2006 ruling
from the U.S. Court of Appeals for the 9th Circuit had set the damages at $2.5 billion—a 50% reduction from the
original, 1994 ruling). The case is still in the system, because plaintiffs are seeking interest on the awarded damages,
which could amount to an additional $488 million.
7 CRS Report (out-of-print, available from CRS by request), Liability Provisions in State Oil Spill Laws: A Brief
Summary, October 1, 1990.
8 For example, California passed the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act in 1990. More
information is available at http://www.dfg.ca.gov/ospr/about/history.html#.
9 NRC report, p. 4.
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of a complicated and often controversial equation that is addressed after an oil spill: ecosystem
recovery.
Acute Impacts
Depending on the toxicity and concentration of the spill, acute exposure to oil spills can kill
various organisms and cause the following debilitating (but not necessarily lethal) effects:10
• reduced reproduction,
• altered development,
• impaired feeding mechanisms, and
• decreased defense from disease.
Birds, marine mammals, bottom-dwelling and intertidal species, and organisms in their
developmental stages—e.g., fish eggs and larvae—are particularly vulnerable to oil spills.11
In addition to the impacts to individual organisms, oil spills can lead to a disruption of the
structure and function of the ecosystem. Certain habitats—such as coral reefs, mangrove swamps,
and salt marshes—are especially vulnerable, because the physical structure of the habitats
depends upon living organisms.
These potential acute effects to individual organisms and marine ecosystems have been
“unambiguously established” by laboratory studies and well-studied spills, such as the Exxon
Valdez.12
Chronic Impacts
Long-term, chronic exposure typically occurs from continuous oil releases—leaking pipelines,
offshore production discharges, and non-point sources (e.g., urban runoff). Although spills are
normally associated with acute impacts, some oil spills have also demonstrated chronic exposure
and effects.13 There is increasing evidence that chronic, low-level exposures to oil contaminants
can significantly affect the survival and reproductive success of marine birds and mammals.14
However, because of the complexity of factors, including a longer time period and presence of
other pollutants, determining the precise effects on species and ecosystems due to chronic oil
exposure in a particular locale is difficult for scientists. As a result, studies involving chronic
effects are often met with debate and some controversy.
10 These “sub-lethal” effects can occur at concentrations that are several orders of magnitude lower than concentrations
that cause death. NRC report, p. 127.
11 NRC report, Chapter 5; also multiple conversations with National Oceanic Atmospheric Administration (NOAA)
personnel (2008).
12 NRC report, p. 120.
13 NRC report, p. 121.
14 NRC report, p. 134.
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Ecosystem Recovery
Interested parties may have differing opinions at to what constitutes ecosystem recovery. At one
end of the spectrum, local groups may demand that an ecosystem be returned to pre-spill
conditions. NOAA regulations (15 CFR Section 990.30) state that recovery “means the return of
injured natural resources and services to baseline”—in other words, a return to conditions as they
would have been had the spill not occurred. Baseline conditions may not equate with pre-spill
conditions. Multiple variables affect local species and ecosystem services. For example, one
species at a spill site could have been on the decline at the time of an incident, because of
changing water temperatures, for example. These types of trends are considered when trustees
evaluate restoration efforts. Restoration leaves room for site-specific interpretation, which, in the
case of the Exxon Valdez spill and cleanup, continues to generate considerable argument.
Economic Costs of Oil Spills
The economic costs that can result from an oil spill can be broken into three categories: cleanup
expenses, natural resource damages, and the various economic losses incurred by the affected
community or individuals.
Cleanup Costs
The cleanup costs of an oil spill can vary greatly and are influenced by a mix of factors: location
characteristics, oil type, and oil volume. Location is generally considered the most important
factor because it involves multiple variables. Areas with less water movement, such as
marshlands, will generally cost more to clean up than open water. Tourist destinations or sensitive
habitats, such as coral reefs, will likely require more stringent cleanup standards, thus increasing
the costs. The political and social culture at the spill site plays a part as well. A spill in a high-
profile area—e.g., the November 7, 2007 spill (53,000 gallons) from a container ship into the San
Francisco Bay—will likely receive special attention. Major oil spills, especially ones that affect
shoreline ecosystems, are often met with extensive media coverage, placing pressure on parties to
take action. Coupled with this pressure, authorities (federal or state) at these locations may
require extensive oil spill response requirements, which can influence cleanup cost. The United
States likely meets this description, because its average cleanup cost (per barrel of oil spilled) is
considerably higher than in other parts of the world.15
The more persistent and viscous oil types, such as heavy crude oil and intermediates known as
bunker fuels, are more expensive to clean up. Gasoline and other lighter refined products may
require only minimal cleanup action. These materials will evaporate or disperse relatively
quickly, leaving only a small volume of petroleum product available for recovery.
Compared with other factors, spill volume is less important. A major spill away from shore will
likely cost considerably less than a minor spill in a sensitive location. Certainly, the amount of oil
spilled affects cleanup costs, because, all things being equal, a larger spill will require a larger and
15 The average cleanup cost is three times higher in the United States than in Europe (based on 1997 data and excluding
the Exxon Valdez costs). See, Etkin, Dagmar, “Estimating Cleanup Costs for Oil Spills,” paper presented at the 1999
International Oil Spill Conference, 1999, citing data from the Oil Spill Intelligence Report International Oil Spill
Database.
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more expensive cleanup effort. However, the relationship between cleanup costs and spill volume
is not linear. Cleaning up a smaller spill is likely to cost more than a larger spill on a per-gallon
basis.16
Natural Resources Damages
This category of costs relates to the environmental impacts caused by an oil spill. Pursuant to
OPA, the party responsible for an oil spill is liable for any loss of natural resources (e.g., fish,
animals, plants, and their habitats) and the services provided by the resource (e.g., drinking water,
recreation).
When a spill occurs, natural resource trustees conduct a natural resource damage assessment to
determine the extent of the harm. Trustees may include representatives from tribal governments
as well as officials from state agencies (designated by the relevant Governor) and federal agencies
(designated by the President), such as NOAA.17
The Oil Pollution Act (OPA) of 1990 states that the measure of natural resource damages includes
• the cost of restoring, rehabilitating, replacing, or acquiring the equivalent of, the
damaged natural resources;
• the diminution in value of those natural resources pending restoration; and
• the reasonable cost of assessing those damages.18
Pursuant to OPA, NOAA developed regulations pertaining to natural resource damage
assessments in 1996.19 Natural resource damages may include both losses of direct use and
passive uses. Direct use value may derive from recreational (e.g., boating), commercial (e.g.,
fishing), or cultural or historical uses of the resource. In contrast, a passive-use value may derive
from preserving the resource for its own sake or for enjoyment by future generations.20
The damages are compensatory, not punitive. Collected damages cannot be placed into the
general treasury revenues of the federal or state government, but must be used to restore or
replace lost resources.21 Indeed, NOAA’s regulations focus on the costs of primary restoration—
returning the resource to its baseline condition—and compensatory restoration—addressing
interim losses of resources and their services.22
16 This is primarily due to the fact that a spill of any size (e.g., in a sensitive area) will require that equipment and
response experts be sent to the scene. See Etkin, Dagmar, “Estimating Cleanup Costs for Oil Spills,” paper presented at
the 1999 International Oil Spill Conference, 1999, p. 5.
17 For more information, see NOAA’s Damage Assessment, Remediation, and Restoration Program at
http://www.darrp.noaa.gov/about/index.html.
18 33 U.S.C. Section 2706(d).
19 61 Federal Register 440 (January 5, 1996). See also NOAA, Injury Assessment Guidance Document for Natural
Resource Damage Assessment Under the Oil Pollution Act of 1990 (1996).
20 See 15 CFR Section 990.30, definition of “value.”
21 33 U.S.C. Section 2706(f); William D. Brighton, Natural Resource Damages under the Comprehensive
Environmental Response, Compensation, and Liability Act (2006), U.S. Department of Justice, Environment and
Natural Resources Division.
22 William D. Brighton, Natural Resource Damages under the Comprehensive Environmental Response,
Compensation, and Liability Act (2006), U.S. Department of Justice, Environment and Natural Resources Division.
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Other Economic Costs
Oil spills can generate costs other than response expenses or damages to natural resources. An oil
spill can disrupt business activity near the spill, particularly businesses that count on the
reputation of the local environment. For example, the local tourist industry may be affected. In
some cases, a well-publicized oil spill can weaken the tourist industry near the spill site,
regardless of the actual threat to human health created by the spill.
Local infrastructure and services can be disrupted by an oil spill. Port and harbor operations may
be interrupted, altering the flow of trade goods. Power plants that use cooling water systems may
need to temporarily cease operations. For example, the Salem Nuclear Plant—the second largest
nuclear plant in the United States—was forced to halt activity due to a substantial oil spill (more
than 250,000 gallons) in the Delaware River in November 2004.
Unlike natural resource damage claims, which are brought by the appropriate natural resource
trustees, the costs described in this section would be submitted as claims by the third-parties
suffering the specific loss.
Oil Spill Governance
When the Exxon Valdez ran aground in March 1989, there were multiple federal statutes, state
statutes, and international conventions that dealt with oil discharges. The governing framework
for oil spills in the United States remains a combination of federal, state, and international
authorities. Within this framework, several federal agencies have the authority to implement oil
spill regulations. The framework and primary federal funding process (the Oil Spill Liability
Trust Fund) used to respond to oil spills are described below.
Federal Authorities: Before and After the Exxon Valdez Spill
The following list highlights the primary federal authorities that were in effect when the Exxon
Valdez spill occurred in 1989:
• Clean Water Act (1972):23 The Clean Water Act (CWA) represented the broadest
authority for addressing oil spills at the time of the Exxon Valdez spill. Section
311 of the CWA established requirements for oil spill reporting, response, and
liability. The act also created a fund (311 Fund), maintained by federal
appropriations, that could be used for cleanup and natural resource restoration.
• Deepwater Port Act (1974):24 This statute addressed oil spills and liability issues
at deepwater oil ports. The act also set up the Deepwater Port Fund to provide for
prompt cleanup and compensate damages above liability limits. The fund was
financed by a per-gallon tax on oil transferred at a deepwater port.
23 The official statutory name is the Federal Water Pollution Control Act, P.L. 92-500, as amended, codified at 33
U.S.C. 1251, et seq.
24 P.L. 93-627, codified at 33 U.S.C. 1501, et seq.
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• Trans-Alaska Pipeline Authorization Act (1973):25 This act covered oil spills and
liability relating to the Trans-Alaska Pipeline System (TAPS). Although the
pipeline is constructed over land, spills from it could reach coastal waters via
inland rivers. The act created a trust fund, financed through a lessee fee, that
could be used to respond to spills and damages from the pipeline.
• Outer Continental Shelf Lands Act Amendments (1978):26 This act established an
oil spill liability structure and rules for oil extraction facilities in federal offshore
waters. With this legislation, Congress created the Offshore Pollution Fund,
financed by a per-gallon fee on produced oil, that could be used for oil spill
cleanup and damages.
• National Oil and Hazardous Substances Pollution Contingency Plan (NCP): The
NCP was first established in 1968, after U.S. policymakers observed the response
to a 37-million-gallon oil tanker spill (Torrey Canyon) off the coast of England.27
The NCP contains the federal government’s procedures for responding to oil
spills and hazardous substance releases.28 Subsequent laws have amended the
NCP, including the CWA in 1972 and the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA or Superfund) in 1980.
After the Exxon Valdez spill, many observers29 described the above legal collection as an
ineffective patchwork. Arguably, each law had perceived shortcomings (discussed below in the
context of post-Exxon Valdez legislation), and none provided comprehensive oil spill coverage.
For more than 15 years prior to the Exxon Valdez incident, Congress made attempts to enact a
unified oil pollution law. Several contentious issues produced deadlocks, hindering the passage of
legislation. One of the central points of debate, state preemption, dealt with whether a federal oil
spill law should limit a state’s ability to impose stricter requirements, particularly unlimited
liability. Other liability questions also generated debate. For example, if an oil spill occurred,
should the owner of the cargo (i.e., oil) be held liable, as was the ship owner/operator? Another
point of contention was whether oil-carrying vessels should be required to have double hulls.
Although proponents argued that a second hull would help prevent oil spills, the shipping
industry raised concern that implementing such a mandate would disrupt oil transportation and
potentially affect the national economy. A final issue involved the interaction between domestic
legislation (federal and state) and international measures. Some were concerned that if the United
States became a party to certain international agreements under consideration in the 1980s,30 the
international standards would preempt federal and state laws, especially those establishing
liability limits. Proponents argued that these concerns were overstated, and stressed that joining
the international agreements was especially important for the United States because of the
international nature of oil transportation and associated pollution.
25 P.L. 93-153, codified at 43 U.S.C. 1651, et seq.
26 P.L. 95-372, codified at 43 U.S.C. 1801, et seq.
27 See EPA “National Contingency Plan Overview” at http://www.epa.gov/emergencies/content/lawsregs/ncpover.htm.
28 The NCP is codified at 40 CFR Part 300.
29 See, for example, U.S. Congress, House Committee on Merchant Marine and Fisheries, Report accompanying H.R.
1465, Oil Pollution Prevention, Removal, Liability, and Compensation Act of 1989, 1989, H.Rept. 101-242, Part 2,
101st Cong., 1st sess., p. 32.
30 The two agreements under consideration were the 1984 Protocols to the International Convention on Civil Liability
for Oil Pollution Damage and the Protocols to the International Fund for Compensation for Oil Pollution Damages.
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Following the 1989 Exxon Valdez spill, Members faced great pressure to overcome the disputes
discussed above.31 The spill highlighted the inadequacies of the existing coverage and generated
public outrage. The end result was the Oil Pollution Act of 1990 (OPA)32—the first
comprehensive law to specifically address oil pollution to waterways and coastlines of the United
States.
Oil Pollution Act of 1990
With the enactment of OPA on August 18, 1990, Congress consolidated the existing federal oil
spill laws under one program. The 1990 law expanded the existing liability provisions within the
CWA and created new free-standing requirements regarding oil spill prevention and response.
Key OPA provisions are discussed below.
Spill Response Authority
When responding to a spill, many considered the lines of responsibility under the pre-OPA regime
to be unclear,33 with too much reliance on spillers to perform proper cleanup.34 OPA strengthened
and clarified the federal government’s role in oil spill response and cleanup. OPA Section 4201
amended Section 311(c) of the CWA to provide the President (delegated to the USCG or EPA)
with three options: perform cleanup immediately (“federalize” the spill), monitor the response
efforts of the spiller, or direct the spiller’s cleanup activities. The revised response authorities
addressed concerns “that precious time would be lost while waiting for the spiller to marshall its
cleanup forces.”35
The federal government determines the level of cleanup required. Although the federal
government must consult with designated trustees of natural resources and the governor of the
state affected by the spill, the decision that cleanup is completed and can be ended rests with the
federal government. States may require further work, but without the support of federal funding.36
National Contingency Plan
OPA expanded the role and breadth of the NCP. The 1990 law established a multi-layered
planning and response system to improve preparedness and response to spills in marine
31 A handful of other oil spills followed the Exxon Valdez in 1989 and 1990 (e.g.,the Mega Borg spilled 5 million
gallons of oil in the Gulf of Mexico), further spurring congressional action.
32 P.L. 101-380, primarily codified at U.S.C. 2701, et seq.
33 See, for example, Wilkinson, Cynthia et al., “Slick Work: An Analysis of the Oil Pollution Act of 1990,” Journal of
Energy, Natural Resources, and Environmental Law, 12 (1992), p. 190.
34 See, Grumbles, Benjamin, and Manley, Joan, “The Oil Pollution Act of 1990: Legislation in the Wake of a Crisis,”
Natural Resources and Environment, 10:2 (1995), p. 38.
35 U.S. Congress, House Committee on Merchant Marine and Fisheries, Report accompanying H.R. 1465, Oil Pollution
Prevention, Removal, Liability, and Compensation Act of 1989, 1989, H.Rept. 101-242, Part 2, 101st Cong., 1st sess., p.
84.
36 OPA Section 1011.
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environments.37 Among other things, the act also required the President to establish procedures
and standards (as part of the NCP) for responding to worst-case oil spill scenarios.38
Tank Vessel and Facility Response Plans
As a component of the enhanced NCP, OPA amended the CWA to require that U.S. tank vessels,
offshore facilities, and certain onshore facilities39 prepare and submit oil spill response plans to
the relevant federal agency. In general, vessels and facilities are prohibited from handling,
storing, or transporting oil if they do not have a plan approved by (or submitted to) the
appropriate agency40 (Table 1).
The plans should, among other things, identify how the owner or operator of a vessel or facility
would respond to a worst-case scenario spill. Congress did not intend for every vessel to have
onboard all the personnel and equipment needed to respond to a worst-case spill, but vessels must
have a plan and procedures to call upon—typically through a contractual relationship—the
necessary equipment and personnel for responding to a worst-case spill.41
In 2004, Congress enacted an amendment requiring non-tank vessels (i.e., ships carrying oil for
their own fuel use) over 400 gross tons to prepare and submit a vessel response plan.42 Congress
reasoned that many non-tank vessels have as much oil onboard as small tank vessels, thus
presenting a comparable risk from an oil spill. Moreover, the international standards for oil spill
prevention43 apply to tanker and non-tanker vessels alike. Thus, the 2004 amendment brought the
U.S. law more in line with international provisions.
Double-Hull Design for Vessels
The issue of double hulls received considerable debate for many years prior to OPA, and it was
one of the stumbling blocks for unified oil spill legislation. Proponents maintained that double-
hull construction provides extra protection if a vessel becomes damaged.44 However, opponents
argued that a double-hulled vessel might cause stability problems if an accident occurred, thus
negating the benefits.45 Stakeholders also highlighted the impacts that a double-hull requirement
37 OPA Section 4202, amending Section 311(j) of the CWA.
38 OPA Section 4201(b), amending Section 311(d)(2)(J) of the CWA.
39 The response plan requirement is applicable only to an onshore facility that, because of its location, could reasonably
be expected to cause substantial harm to the environment by discharging into navigable waters, adjoining shorelines, or
the exclusive economic zone. CWA Section 311(j)(5)(iii).
40 OPA Section 4202, amending Section 311(j)(5)(E) of the CWA.
41 U.S. Congress, House Committee on Merchant Marine and Fisheries, Report accompanying H.R. 1465, Oil Pollution
Prevention, Removal, Liability, and Compensation Act of 1989, 1989, H.Rept. 101-242, Part 2, 101st Cong., 1st sess., p.
87. OPA Section 4202, amending Section 311(j)(5)(C)(iii) of the CWA.
42 Amendments Relating to the Oil Pollution Act of 1990, Title VII of Coast Guard and Maritime Transportation Act of
2004 (P.L. 108-293), codified at 33 U.S.C. 1321.
43 Primarily the shipboard oil pollution emergency plans required by MARPOL 73/78, discussed later in this report.
44 A study from the National Academy of Sciences reached this conclusion in 1999. See National Research Council,
Double hull Tanker Legislation: An Assessment of the Oil Pollution Act of 1990, National Academies of Science, 1999,
p. 144.
45 Opponents maintained that if water entered the space between hulls, the ship could become unstable, hindering
salvage and possibly capsizing. Wilkinson, Cynthia et al., “Slick Work: An Analysis of the Oil Pollution Act of 1990,”
Journal of Energy, Natural Resources, and Environmental Law, 12 (1992), p. 196.
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would entail for the shipping industry (e.g., cost and time of retrofitting, ship availability).46 The
OPA requirements for double hulls reflected some of these concerns.
The act required new vessels carrying oil and operating in U.S. waters to have double hulls.47
However, OPA provided certain exceptions, depending on the size of the vessel (e.g., less than
5,000 gross tons)48 and its particular use (e.g., lightering).49 For older vessels, OPA established a
staggered retrofitting schedule, based on vessel age and size. Many of the age-based deadlines
have already passed. By 2015 at the latest, the law requires that all oil-carrying vessels operating
in U.S. waters have double hulls.
Liability Issues
OPA unified the liability provisions of existing oil spill law, creating a freestanding liability
regime. Section 1002 states that responsible parties are liable for any discharge of oil (or threat of
discharge) from a vessel or facility50 to navigable waters, adjoining shorelines, or the exclusive
economic zone51 of the United States (i.e., 200 miles beyond the shore).
Regarding the existing oil spill law prior to OPA, Congress recognized that “there is no
comprehensive legislation in place that promptly and adequately compensates those who suffer
other types of economic loss as a result of an oil pollution incident.”52 OPA broadened the scope
of damages (i.e., costs) for which an oil spiller would be liable. Under OPA, a responsible party is
liable for all cleanup costs incurred, not only by a government entity, but also by a private party.53
In addition to cleanup costs, OPA significantly increased the range of liable damages to include
the following:
• injury to natural resources,
• loss of personal property (and resultant economic losses),
• loss of subsistence use of natural resources,
• lost revenues resulting from destruction of property or natural resource injury,
• lost profits resulting from property loss or natural resource injury, and
46 U.S. Congress, Conference Report accompanying H.R. 1465, Oil Pollution Act of 1990, 1990, Conf.Rept. 101-653,
101st Cong., 2nd sess., pp. 140-141.
47 OPA Section 4115, amending 46 U.S.C. 3703.
48 This exception applied to many inland barges.
49 Lightering is the process of transferring oil from a large vessel to a smaller vessel. This common practice occurs in
designated areas that are typically many miles away from shore.
50 The definition of “facility” is broadly worded and includes pipelines and motor vehicles. OPA Section 1001.
51 Under the pre-OPA regime (primarily the CWA), a discharge 12 miles beyond shore had to affect the natural
resources before liability attached. Under OPA Section 1002, the discharge itself triggers liability. Wilkinson, Cynthia
et al., “Slick Work: An Analysis of the Oil Pollution Act of 1990,” Journal of Energy, Natural Resources, and
Environmental Law, 12 (1992), p. 201.
52 U.S. Congress, House Committee on Merchant Marine and Fisheries, Report accompanying H.R. 1465, Oil Pollution
Prevention, Removal, Liability, and Compensation Act of 1989, 1989, H.Rept. 101-242, Part 2, 101st Cong., 1st sess., p.
31.
53 OPA Section 1002(b)(1).
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• costs of providing extra public services during or after spill response.54
OPA provided several defenses from liability: act of God, act of war, and act or omission of a
third party. Although these defenses are more narrow than those for oil spills under the pre-OPA
framework (primarily the CWA), they are similar to those of the Superfund statute,55 established
in 1980 for releases of hazardous substances.
Except for certain behavior, including acts of gross negligence or willful misconduct,56 OPA set
liability limits (or caps) for cleanup costs and other damages. Liability limits for vessels are based
on vessel carrying capacity, generally $1,200 per gross ton. As an example, the liability limit for
the 2004 Athos tanker spill in Delaware River was approximately $45 million.57 Offshore facility
liability is capped at $75 million; onshore facilities and deepwater port liability is limited to $350
million. These limits are much higher than under the pre-OPA liability structure.
OPA required the President to issue regulations to adjust the liability limits at least every three
years to take into account changes in the consumer price index (CPI). Despite this requirement,
adjustments to liability limits were not made until July 2006. The Coast Guard and Maritime
Transportation Act of 2006 (P.L. 109-241) amended OPA, increasing limits to $1,900/gross ton
for double-hulled vessels and $3,000/gross ton for single-hulled vessels.
The Oil Spill Liability Trust Fund
Prior to OPA, federal funding for oil spill response was generally considered inadequate,58 and
damage recovery was difficult for private parties.59 To help address these issues, Congress
established the Oil Spill Liability Trust Fund (OSLTF).
Pursuant to Executive Order (EO) 12777, the USCG created the National Pollution Funds Center
(NPFC) to manage the trust fund in 1991. The fund may be used for several purposes:
• prompt payment of costs for responding to and removing oil spills;
• payment of the costs incurred by the federal and state trustees of natural
resources for assessing the injuries to natural resources caused by an oil spill, and
developing and implementing the plans to restore or replace the injured natural
resources;
54 OPA Section 1002(b)(2).
55 Section 107(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA,
commonly known as Superfund), P.L. 96-510.
56 In addition, liability limits are unavailable if the violation of a federal safety, construction, or operating requirement
proximately caused the spill. Spillers must also report the incident and cooperate with response officials to take
advantage of the liability caps. OPA Section 1004(c).
57 37,895 gross tons x $1,200/ton = $45.47 million. Vessel data from United States Coast Guard, Investigation into the
Striking of Submerged Objects by the Tank Vessel Athos I in the Delaware River on November 26, 2004 with a Major
Discharge of Oil, January 2006, p. 4.
58 Wilkinson, Cynthia et al., “Slick Work: An Analysis of the Oil Pollution Act of 1990,” Journal of Energy, Natural
Resources, and Environmental Law, 12 (1992), p. 188.
59 U.S. Congress, House Committee on Merchant Marine and Fisheries, Report accompanying H.R. 1465, Oil Pollution
Prevention, Removal, Liability, and Compensation Act of 1989, 1989, H.Rept. 101-242, Part 2, 101st Cong., 1st sess., p.
35.
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• payment of parties’ claims for uncompensated removal costs, and for
uncompensated damages (e.g., financial losses of fishermen, hotels, and
beachfront businesses);
• payment for the net loss of government revenue, and for increased public
services by a state or its political subdivisions; and
• payment of federal administrative and operational costs, including research and
development, and $25 million per year for the Coast Guard’s operating expenses.
Although Congress created the OSLTF in 1986,60 Congress did not authorize its use or provide its
funding until after the Exxon Valdez incident. In 1990, OPA provided the statutory authorization
necessary to put the fund in motion. Through OPA, Congress transferred other federal liability
funds61 into the OSLTF. In complementary legislation, Congress imposed a 5-cent-per-barrel tax
on the oil industry to support the fund.62 Collection of this fee ceased on December 31, 1994, due
to a sunset provision in the law. However, in April 2006, the tax resumed as required by the
Energy Policy Act of 2005 (P.L. 109-58). In addition, the Emergency Economic Stabilization Act
of 2008 (P.L. 110-343) increased the tax rate to 8 cents through 2016. In 2017, the rate increases
to 9 cents. The tax is scheduled to terminate at the end of 2017.63 The level of funding in the trust
fund is discussed below.
Financial Responsibility
To preserve the trust fund and ensure that responsible parties can be held accountable for oil spill
cleanup and damages, OPA requires that vessels maintain evidence of financial responsibility
(e.g., insurance). The Coast Guard’s National Pollution Funds Center carries out this mandate by
issuing Certificates of Financial Responsibility (COFRs) to shipping vessel owners when owners
demonstrate the ability to pay for oil spill cleanup and damages. In general, vessels over 300
gross tons are required to have a valid COFR to operate in U.S. waters.
Although the liability limits were increased with the Coast Guard and Maritime Transportation
Act of 2006 (P.L. 109-241), the Coast Guard regulations (33 CFR Part 138) addressing COFRs
have not been amended to reflect the new limits. In a Federal Register notice (Vol. 71, August 18,
2006) the Coast Guard stated that “the levels of financial responsibility enforceable by the Coast
Guard are the total applicable amounts currently found at 33 CFR 138.80(f).” The same Federal
Register notice indicates that the Coast Guard will initiate a rulemaking to amend the levels of
financial responsibility.
Other Federal Laws
Although OPA is the primary domestic legislation for oil spills, other federal laws contain
provisions that relate to oil spills. Many of these provisions were in place before OPA. The
60 Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509).
61 The CWA Section 311(k) revolving fund; the Deepwater Port Liability Fund; the Trans-Alaska Pipeline Liability
Fund; and the Offshore Oil Pollution Compensation Fund.
62 Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239). Other revenue sources for the fund include interest on
the fund, cost recovery from the parties responsible for the spills, and any fines or civil penalties collected.
63 Section 405 of P.L. 110-343.
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following list is not all-inclusive, but it highlights the main requirements authorized by laws other
than OPA.
Clean Water Act
Section 311(j)(1) of the 1972 CWA called for regulations to prevent the discharge of oil from
vessels, onshore facilities, and offshore facilities. Pursuant to this statutory requirement,64 the
EPA crafted regulations65 for spill prevention control and countermeasure (SPCC) plans in 1973,
some of which are scheduled to go into effect July 1, 2009.66 SPCC plans address the
“procedures, methods, and equipment and other requirements for equipment to prevent
discharges.”67 The EPA’s SPCC plans apply only to non-transportation, onshore facilities that
exceed a certain oil storage capacity and that, in the event of a spill, can be reasonably expected,
because of their location, to produce an oil discharge that would reach navigable waters or
adjoining shorelines of the United States.68 Unlike other oil spill preparedness provisions, SPCC
plans focus more on prevention than on response activities, requiring, for example, secondary
containment (e.g., dikes, berms) for oil-storage equipment.
Outer Continental Shelf Lands Act
The primary federal law governing oil development and operations in federal waters is the Outer
Continental Shelf Lands Act (OCSLA) of 1953 and its subsequent amendments. The OCSLA
provided the foundation for regulations (30 CFR Part 250) that are implemented by the Minerals
Management Service (MMS). Sections of the MMS regulations address oil spill prevention and
response issues by requiring that various equipment and procedures be in place at offshore
facilities. For more information, see CRS Report RL33404, Offshore Oil and Gas Development:
Legal Framework, by Adam Vann.
Pipeline Legislation
The U.S. pipeline network is extensive. Recent estimates indicate there are more than 33,000
miles of pipelines just in the Gulf of Mexico.69 Moreover, U.S. inland pipelines are concentrated
in coastal areas, particularly in the Gulf states, and these pipelines may have an impact on coastal
waters if spills reach waterways that empty into coastal waters.
Several laws govern oil pipelines. The Hazardous Liquid Pipeline Act of 1979 (P.L. 96-129)
granted authority to the Department of Transportation (DOT) to regulate various issues regarding
oil spills from pipelines. On December 29, 2006, the President signed the Pipeline Safety
Improvement Act of 2006 (P.L. 109-468) to improve pipeline safety and security practices, and to
64 And in accordance with Executive Order 11735 (August 3, 1973), granting EPA the authority to regulate non-
transportation-related onshore and offshore facilities.
65 U.S. EPA, “Oil Pollution Prevention: Non-Transportation Related Onshore and Offshore Facilities,” Federal
Register, vol. 38, no. 237 (December 11, 1973), pp. 34164-34170.
66 For more information see EPA’s SPCC website at http://www.epa.gov/emergencies/content/spcc/index.htm.
67 CWA Section 311(j)(1)(C).
68 See 40 CFR Section 112.1.
69 See, for example, MMS Press Release from February 2, 2005, at http://www.mms.gov/ooc/press/2005/
press0202.htm.
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reauthorize the federal Office of Pipeline Safety. The Office of Pipeline Safety (OPS), which is
part of the DOT, implements provisions concerning pipeline design, construction, operation and
maintenance, and spill response planning. For further information on pipeline legislation, see
CRS Report RL33347, Pipeline Safety and Security: Federal Programs, by Paul W. Parfomak.
Vessel Legislation
Several federal laws directly or indirectly deal with oil pollution from vessels.70 Laws concerning
navigation reduce the possibilities of vessel collision or hull breach by objects in the waterways.71
Other laws call for particular vessel design standards. For example, the Ports and Waterways
Safety Act of 1972,72 amended by the Port and Tanker Safety Act of 1978,73 called for specific
construction and equipment design requirements for oil tankers. (As noted, OPA subsequently
amended this statute in 1990 by establishing a phased-in schedule for double-hulled tankers.)
Congress enacted the 1970s legislation to coincide with international initiatives. In fact, many of
the federal laws concerning vessel standards and pollution control procedures were written to
implement international conventions. These laws are discussed in the next section.
International Conventions
The relationship between international and domestic law can be complex. In general, international
conventions (i.e., treaties), when signed by the United States and (if necessary) ratified by the
Senate, are on equal footing with federal law. Parties to such conventions must often implement
domestic legislation to carry out the provisions outlined in the convention. Several of the federal
laws governing oil spills were fashioned in this manner.74
International conventions have played an important role in developing consistent standards for
oil-carrying vessels from different nations. A primary player in this regard is the International
Maritime Organization (IMO), a body of the United Nations, which sets international maritime
vessel safety and marine pollution standards. The Coast Guard represents the United States at
IMO meetings.
Multiple international conventions concern vessels and their impact on the marine environment.
The two conventions described below are the most relevant to oil pollution in coastal waters.
70 For a comprehensive list of federal maritime legislation see USCG, Marine Safety Manual, Vol. IX (undated),
Chapter 1, available at http://homeport.uscg.mil.
71 For example, the Rivers and Harbors Act of 1899, as amended (33 U.S.C. 401, et seq.), and the International
Regulations for Preventing Collisions at Sea, as amended (33 U.S.C. 1601, et seq.).
72 P.L. 92-340, 33 U.S.C. 1221, et seq.
73 P.L. 95-474, codified at 33 U.S.C. 1221-1232 and 46 U.S.C. 3701-3718.
74 If a treaty is considered “self-executing,” domestic legislation implementing the treaty is not necessary. For more
details on these issues, see CRS Report RL32528, International Law and Agreements: Their Effect Upon U.S. Law, by
Michael John Garcia.
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MARPOL 73/78
The IMO implements the 1973 International Convention for the Prevention of Pollution from
Ships, as modified by the Protocol of 1978 (MARPOL 73/78).75 Vessels whose nations are
signatories to MARPOL are subject to its requirements, regardless of where they sail, and
member nations are responsible for the vessels registered under their flag.
MARPOL 73/78 includes six annexes, each covering a different pollution type. Annex I
(Prevention of Pollution by Oil) entered into force in 198376 and established requirements for
controlling oil discharges to sea. Annex I requires vessels to have equipment that minimizes oil
discharge, such as oil-water separators, and shipboard oil pollution emergency plans (SOPEPs).
Although the SOPEP applicability is similar to that of the vessel response plan (VRP) required by
OPA,77 the purpose of the SOPEP is somewhat different. A SOPEP is intended to provide
guidance to the vessel’s officers regarding proper onboard emergency procedures when an oil
spill occurs,78 whereas the VRP is more focused on responding to the spill itself.
The United States implements Annex I through the act to Prevent Pollution from Ships (APPS).79
APPS applies to all U.S.-flagged ships, irrespective of location, and to all foreign-flagged vessels
in U.S. waters or at ports under U.S. jurisdiction. The USCG issues and enforces regulations
necessary to carry out the APPS provisions. The USCG inspection program is a key component of
its oil spill prevention effort.
Intervention Convention
The 1967 Torrey Canyon spill off the coast of Great Britain was one of the first major spills to
receive worldwide attention.80 The incident raised many questions regarding oil spill response,
particularly when dealing with vessels from other nations. For example, the incident prompted
debate over actions allowable if a nation’s waters and environment are threatened by a spill from
another nation’s vessel. The 1969 International Convention Relating to Intervention on the High
Seas in Cases of Oil Pollution Casualties (the Intervention Convention) sought to address these
issues.
To implement this convention in the United States, Congress passed the Intervention on the High
Seas Act of 1974.81 Under this act, if the USCG determines there to be a “grave and imminent
danger to the coastline or related interests of the United States from pollution or threat of
pollution of the sea by convention oil [i.e., as defined in the convention],” the USCG can take
action to “prevent, mitigate, or eliminate that danger.”
75 For convention texts and other materials, see http://www.imo.org.
76 The phrase “entry into force” signifies that the requisite number of nations have ratified the convention or annex,
thus making the agreed upon requirements binding for all participating nations. For more discussion of the procedures
of international conventions, see the IMO website at http://www.imo.org.
77 All vessels of any type over 400 gross tons traveling over international waters must have a SOPEP approved by their
flag state. See USCG VRP/SOPEP “FAQs” at http://www.uscg.mil/vrp.
78 USCG, 1997, Marine Safety Manual, Marine Environment Protection, Volume IX, p. 4-24.
79 P.L. 96-478, 33 U.S.C. 1901, et seq.
80 The Torrey Canyon, a Liberian-flagged tanker, spilled approximately 35 million gallons of crude oil.
81 P.L. 93-248 , 33 U.S.C. 1471, et seq.
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Federal Agencies Responsibilities
Unlike most countries, the United States shares jurisdiction over its territorial seas (0-12 nautical
miles from shore) with its coastal states. The 1953 Submerged Lands Act (SLA) gave coastal
states jurisdiction over the submerged lands, waters, and natural resources (e.g., oil deposits)
located, in most cases, within three nautical miles off the coastline.82 The waters, seabed, and
natural resources beyond the states’ waters are exclusively federal, and extend to the edge of the
exclusive economic zone (200 nautical miles from shore). However, the federal government
maintains the authority to regulate commerce, navigation, national defense, power production,
and international affairs within state waters.
The oil spill legal framework involves implementation by multiple federal agencies. Agency
responsibilities can be divided into two categories: (1) oil spill response and cleanup and (2) oil
spill prevention/preparedness.
Response
Oil spill response authority is determined by the location of the spill: the USCG has response
authority in coastal waters, and the EPA covers inland oil spills.83
As the primary response authority in coastal waters, the USCG has the ultimate authority to
ensure that an oil spill is effectively removed and actions are taken to prevent further discharge
from the source. During response operations, the USCG coordinates the efforts of federal, state,
and private parties.
Coast Guard response efforts are supported by NOAA’s Office of Response and Restoration.
NOAA provides scientific analysis and consultation during oil spill response activities.84
Assistance can include oil spill tracking, cleanup alternatives, and knowledge of at-risk natural
resources. Moreover, NOAA experts begin to collect data to assess natural resource damages
during response operations.
Prevention and Preparedness
Regarding oil spill prevention and preparedness duties, jurisdiction is determined by the potential
sources (e.g., vessels, facilities, pipelines) of oil spills. A series of executive orders (EOs),
coupled with memoranda of understanding (MOU), have established the various agency
82 Most state waters extend 3 nautical miles (1 nautical mile = 6,076 feet, or 1.15 miles) from shore. Louisiana waters
extend 3 imperial nautical miles (1 imperial nautical mile = 6,080 feet). Texas and Gulf Coast of Florida waters extend
3 marine leagues (equating to 9 nautical miles). See the MMS, OCS, website (“Definitions and Jurisdictions”) at
http://www.mms.gov/incidents/pollution.htm.
83 The terms inland and coastal are defined in the National Contingency Plan (40 CFR Section 300.5). The coastal zone
covers all waters subject to the tide, the Great Lakes, and all seaward waters (extending 200 nautical miles beyond
shore). The inland zone covers all other U.S. waters. Spills in inland waters can potentially affect coastal waters and
ecosystems, particularly if the spill occurs in water systems near the coast. In fact, a fine line may separate specific
inland and coastal waters (e.g., consider the nexus between a bay and a river).
84 For more information see NOAA’s Office of Response and Restoration website, at
http://response.restoration.noaa.gov/index.php.
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responsibilities.85 Table 1 identifies the agencies responsible for implementing prevention and
preparedness regulations for the potential sources of oil spills.
Table 1. Federal Agency Jurisdiction for Oil Spill Prevention
and Preparedness Duties, by Source
Potential Source of Oil Spill
Responsible Agency
Vessels
USCG
Onshore, non-transportation facilities
EPA
Onshore, transportation facilities
USCG and Department of Transportation (DOT)
Deepwater portsa USCG
and
DOT
Offshore facilities (oil/gas extraction)
Minerals Management Service (MMS) within the
Department of Interior
Offshore pipelines directly associated with oil extraction
MMS
activities (i.e., “production lines”)b
Offshore pipelines not directly associated with oil extraction
Office of Pipeline Safety (OPS) within the DOT
activities (i.e., “transmission lines”)
Inland pipelines
OPS
a. There is only one deepwater port in U.S. coastal waters: the Louisiana Offshore Oil Port (LOOP).
b. For further discussion on federal pipeline jurisdiction, see National Research Council, Improving the Safety of
Marine Pipelines, National Academies of Science, 1994, pp. 86-89.
Prevention responsibilities include, among other things, assessing whether facilities or vessels
have the necessary equipment in place. As discussed above, vessels may be required to have
double hulls; facilities may need secondary containment.
Preparedness duties involve oversight tasks, such as evaluating facility and vessel response plans.
Preparedness responsibilities also include developing and maintaining contingency plans at
various levels: area, regional, and national. Personnel training is a vital component of sustaining
readiness. NOAA oil spill experts help train responders in government service and private
business.
In addition, OPA requires agencies to conduct internal examinations to test preparedness.86 As
part of this requirement, the USCG conducts Spills of National Significance (SONS) exercises to
analyze the Coast Guard’s ability to respond to a major oil spill.
Federal Funding for the Oil Spill Liability Trust Fund
In recent years, the level of funding for the trust fund has created some concern, highlighting a
central policy debate: how should policymakers allocate the costs associated with a major,
85 Executive Order (EO) 12777 (October 18, 1991) delegates authorities pursuant to the Oil Pollution Act of 1990. This
order was amended by EO 13286 (March 5, 2003), which reorganized duties in response to the creation of the
Department of Homeland Security.
86 As required by OPA Section 4202(a), which amended CWA Section 311(j)(7), codified in 33 U.S.C. 1321(j)(7).
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accidental oil spill? What share of costs should be borne by the responsible party (e.g., oil vessel
owner/operators), the oil industry, and the general treasury?
Background
Prior to actions by the 109th and 110th Congresses, the trust fund was particularly vulnerable to a
large and costly spill (e.g., the Exxon Valdez). After conducting two recent Spills of National
Significance (SONS) exercises (in 2002 and 2004), the Coast Guard observed that a major spill
could exceed the available resources in the trust fund.87
In 2005, Congress reinstated the 5-cent-per-barrel tax on oil, thus providing a dedicated source of
revenue for the trust fund.88 In 2006, Congress raised the vessel liability limits, thus requiring the
responsible party to pay a greater proportion of the oil spill costs.89 In 2008, the Emergency
Economic Stabilization Act of 2008 (EESA; P.L. 110-343) increased the tax rate to 8 cents per
barrel through 2016; in 2017, the rate is scheduled to increase to 9 cents per barrel. The tax
terminates at the end of 2017.
Trust Fund Ceiling
In addition to increasing the tax rate, EESA repealed the requirement that the tax be suspended if
the unobligated balance of the fund exceeded $2.7 billion. Under the original tax legislation (the
Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239)), the per-barrel tax would be
suspended in any calendar quarter if the fund balance reached $1 billion, restarting again if it
dipped below that number. With the Energy Policy Act of 2005 (P.L. 109-58), Congress raised
this threshold from $1 billion to $2.7 billion.
In a report from the Senate Committee on Finance (S.Rept. 110-228), which discussed a provision
similar to the repealing language of EESA,90 the committee stated that this change would simplify
the administration of the tax. In effect, this change removes the former trust fund ceiling of $2.7
billion. As illustrated in Figure 3, the fund is currently projected to crest $3.5 billion by 2016.
Policymakers may question whether it is necessary to have the trust fund reach this level. Others
have suggested increasing the amount of trust fund monies that can be used to support oil spill
research and development programs.91
87 See U.S. Department of Homeland Security, U.S. Coast Guard, California SONS 2004: After Action Report, pp. 46
and A-7.
88 Energy Policy Act of 2005 (P.L. 109-58).
89 Coast Guard and Maritime Transportation Act of 2006 (P.L. 109-241).
90 S.Rept. 110-228 accompanied S. 2345 (110th Congress), which contained (among other provisions) a provision to
raise the tax rate and repeal the fund ceiling. S. 2345 was reported from the Senate Committee on Finance on
November 13, 2007, but no further action was taken.
91 See H.R. 2693, introduced by Representative Woolsey on June 3, 2009.
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Fund Projections
Before the recent legislative changes, fund managers projected the fund would be completely
depleted by FY2009.92 With the 2005 and 2008 statutes in effect, the most recent projection (May
2009) indicates that the fund will reach almost $1.5 billion by the end of FY2009 (Figure 3).
The projections are somewhat uncertain because of potential claims arising from recent spills,
including the 2007 spill into San Francisco Bay, the 2008 spill into the Mississippi River, and oil
spills associated with Hurricanes Katrina and Rita (2005). In the months following the 2005
hurricanes, officials were concerned that associated claims against the fund would be
substantial.93 However, these concerns have so far not been realized. As of the date of this report,
claims related to Katrina and Rita have been relatively minor.94
Figure 3. Projected Annual Balances for
the Oil Spill Liability Trust Fund: FY2009-FY2016
4,000
3,500
rs 3,000
lla
o 2,500
f D 2,000
o
s
n 1,500
illio 1,000
M
500
0
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
Source: Prepared by CRS with data from National Pol ution Funds Center (personal correspondence, May 7,
2009).
Fund Vulnerability
Although the trust fund is less vulnerable to a major spill due to recent legislative changes, some
degree of exposure still remains. As a reference point, the Exxon Valdez spill tallied
approximately $2 billion in cleanup costs and $1 billion in natural resource damages (not
including third-party claims). If an accidental oil spill from a vessel matching the size of the
Exxon Valdez (95,000 gross tons)95 were to occur, the vessel liability (under the new limits) would
be capped at either $285 million (single-hull) or $181 million (double hull). Cleanup costs and
92 USCG, Report on the Oil Spill Liability Trust Fund, May 2005, p. 11.
93 A background document that was offered at an April 27, 2006, hearing stated, “the Coast Guard had estimated these
costs could exceed $800 million” (House Subcommittee on Coast Guard and Maritime Transportation, Hearing on the
Implementation of the Oil Pollution Act).
94 Per telephone conversation with an official from NPFC (March 30, 2009).
95 The Exxon Valdez has been renamed the Sea River Mediterranean, and its specifications can be found at the USCG
Port State Information Exchange database at http://cgmix.uscg.mil/PSIX/.
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damages in excess of the liability limits could be covered by the trust fund.96 OPA Section 900197
established per-incident expenditure caps: no more than $1 billion (or the maximum amount
available in the fund) for all eligible costs, and no more than $500 million for natural resource
damages. Thus, a major spill, particularly one in a sensitive environment, could threaten the
viability of the fund.
In addition, the above scenario assumes that the owner/operator can take advantage of the liability
limits provided by OPA (e.g., obeyed relevant regulations and did not act with “gross negligence
or willful misconduct”). If liability is not capped, the owner/operator could be liable for all costs.
However, in the case of a significant spill (akin to the Exxon Valdez), some owner/operator
companies may go bankrupt before paying for the entire cost of the spill. Such a scenario may
also threaten the trust fund.
Addressing Vulnerability
The following options are among several that Congress might consider to address these concerns:
• First, Congress could maintain the status quo, in which the costs are shared
between responsible parties, the oil industry, and general taxpayers. Responsible
parties—i.e., owners/operators of vessels and facilities—are liable up to their
liability caps (if applicable); the trust fund, which is funded through the tax on
the oil industry, covers costs above liability limits; general treasury funds would
cover costs if the trust fund is depleted.
• Second, Congress could further increase the liability limits for vessels, so that the
responsible party would be required to pay a greater portion of the total spill cost
before accessing trust fund dollars.
• Third, Congress could (further) increase the per-barrel oil tax to more quickly
raise the fund’s balance. A fully funded OSLTF would be more capable of
absorbing the costs in excess of a spiller’s liability limit.
• Fourth, policymakers may consider expanding liable parties to include the owner
of the oil being transported. This option was considered during the development
of OPA.98 More recently, the Coast Guard Authorization Act for Fiscal Year 2008
(S. 1892 in the 110th Congress) would have, among other things, altered the
liability structure of OPA to make owners of oil liable for spills under certain
conditions.
Considerations for Policymakers
The above options spotlight a central policy debate: how should policymakers allocate the costs
associated with a major, accidental oil spill?
96 Except for emergency funds available to federal officials, the trust fund distributes monies through a claims process.
Persons who have incurred cleanup costs or suffered damages from an oil spill may submit a claim for reimbursement
from the trust fund. This includes responsible parties who have reached their respective liability limits. For more details
on this process, see the National Pollution Fund Center’s website at http://www.uscg.mil/npfc/.
97 Codified in 26 U.S.C. 9509.
98 The House version of the bill—101st Congress, H.R. 1465—would have held, under certain conditions, oil owners
liable for 50% of the costs and damages.
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The first option would maintain the status quo, which represents a cost-sharing structure.
Currently, responsible parties and the oil industry bear the costs for all but the most significant
spills; general treasury funds are needed if the fund is depleted. Some groups may contend this
conflicts with the “polluter pays” principle, arguing that general treasury funds should never have
to pay for oil spill cleanup or damages. Some combination of options two, three, and four could
reduce the possibility of this occurrence.
The second option would help preserve the trust fund by increasing the liability limit of the
spiller. Setting liability limits is a challenge because lawmakers must apportion the risk of a
costly, accidental spill fairly between the responsible party and the trust fund. The shipping
industry would likely argue that a further increase would be disruptive due to the cost of
maintaining additional financial assurance. Considering that the limits were increased
substantially in July 2006, this option might be less feasible than others.
The third option would increase the cost share borne by the oil industry overall. Some would
argue that this follows the polluter pays principle. One view holds that the relevant industry—oil
transportation and the oil industry in general—should bear the environmental costs that may
develop during the course of business. A different interpretation of the “polluter pays” principle
finds that only the responsible party, not industry overall, should pay. One with such a view might
conclude that the third option—increasing the per barrel tax—is overreaching and unfair, because
it increases the costs borne by the entire industry, instead of on the actual responsible party.99
There are likely many economic policy arguments both for and against an additional per-barrel
tax on oil. For instance, some groups may claim that an additional oil barrel tax will be reflected
in higher energy costs (gasoline, home heating oil) for consumers, which could disproportionately
affect lower-income households. (In general, these types of tax policy debates are beyond the
scope of this report.) However, policymakers might consider whether any negative consequences
from an additional tax on industry would outweigh the potential benefits of allocating the costs to
the oil industry. Regardless, raising the per-barrel tax for this purpose seems unlikely, considering
that the rate was recently increased in 2008.
The fourth option, if implemented, would potentially subject oil companies to liability from spills
of their own oil. In line with one view of the polluter pays principle, some may argue that oil
owners should be at least partially responsible for the various costs associated with spills of their
own oil.100 Oil industry stakeholders would likely argue that this option is unfair, because, for
example, they would have limited control (besides selecting a carrier) over the transportation of
their cargo. Moreover, the oil industry would likely point out that they are already supporting oil
spill cleanup generally, through the per-barrel tax. Thus, they would likely argue that attaching
direct liability to cargo owners would be an inequitable distribution of costs.
99 The Bush Administration maintained an analogous view of the “polluter pays” principle in the context of whether or
not to reinstate the Superfund tax on the chemical and oil industry. See CRS Report RL31410, Superfund Taxes or
General Revenues: Future Funding Issues for the Superfund Program, by Jonathan L. Ramseur, Mark Reisch, and
James E. McCarthy.
100 In addition, this change would arguably make OPA liability more in line with the liability structure of the
Comprehensive Environmental Response Compensation and Liability Act (CERCLA or Superfund, P.L. 96-510),
which governs releases of hazardous substances.
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Policymakers may find the fourth option attractive, because of the financial strength—or
perceived financial strength—of the oil companies.101 If the United States faces a multi-billion
dollar oil spill (and the vessel owner/operators are unable to pay), some may argue that the oil
owners should absorb the costs (above the limit of the trust fund) rather than funds from the
general treasury. However, this particular liability issue is complicated: further legal and/or policy
issues associated with this liability change are beyond the scope of this report.
State Laws
As mentioned above, multiple states had oil spill liability laws before the passage of OPA in
1990. During the 15 years prior to OPA’s passage, the issue of whether or not to preempt state
liability laws was perhaps the primary obstacle to enacting unified oil spill legislation. Proponents
of preemption argued that differing state laws—particularly the various levels of liability—
frustrate the shipping industry and are contrary to the goal of comprehensive federal legislation.
Preemption opponents maintained that states should be allowed (as with most other federal
environmental statutes) to set stiffer standards regarding liability, compensation, and cleanup.102
In the aftermath of the Exxon Valdez spill, the scales tipped to the side of anti-preemption.
According to OPA Section 1018 (referred to as a “savings clause”), the act will not preempt any
state from imposing additional liability or requirements with respect to the discharge of oil or
related response activity (e.g., cleanup standards). A 2003 study identified 16 states that impose
unlimited liability for oil spills.103
There was some concern that the language of OPA’s savings clause would allow states to regulate
matters typically reserved for the federal government, such as oil tanker construction. To address
this issue, the conference report stated that the savings clause would not disturb a 1978 Supreme
Court decision that dealt with the intersection of federal and state authority to regulate the
shipping industry.104 In that case, the Court invalidated a Washington State law that had attempted
to govern oil tanker design, size, and movement in Puget Sound.105
Regardless of the clarification in the conference report, the line between federal and state
jurisdiction continues to be tested. In 2000, the Supreme Court struck down a Washington State
rule calling for various personnel requirements, such as training, on oil tankers.106 Similarly, in
July 2006, a federal district court in Massachusetts ruled against a state law that would govern
logistics, such as tanker design, personnel qualifications, and navigation.107
101 Although record profits for certain oil companies have been highlighted in recent years, it is beyond the scope of
this report to assess the extent of profits and financial worth of the oil industry overall, or the percentage of firms that
achieved record profits.
102 In fact, one argument against preemption was that existing requirements under particular state laws would be
diminished or negated entirely. See Benjamin Grumbles and Joan Manley, “The Oil Pollution Act of 1990: Legislation
in the Wake of a Crisis,” Natural Resources and Environment, 10:2 (1995), p. 38.
103 Etkin, Dagmar, 2003, A Worldwide Review of Marine Oil Spill Fines and Penalties, at http://www.environmental-
research.com/erc_papers/ERC_paper_10.pdf.
104 U.S. Congress, Conference Report accompanying H.R. 1465, Oil Pollution Act of 1990, 1990, Conf.Rept. 101-653,
101st Cong., 2nd sess., p. 122.
105 Ray v. Atlantic Richfield, 435 U.S. 151 (1978).
106 United States v. Locke, 529 U.S. 89 (2000).
107 United States v. Massachusetts, 440 F. Supp. 2d 24 (D. Mass. 2006).
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Threat of Future Oil Spills in U.S. Coastal Waters
This section examines the threat of future oil spills in coastal waters by assessing the possibilities
for such spills, including spill location and oil type (crude versus refined product) and the nation’s
level of preparedness (or readiness) for responding to a major spill.
Possibilities for Future Oil Spills
Oil is expected to remain the dominant source of energy in the United States for at least the next
several decades.108 Although earlier projections indicated a steady rise in both oil imports and
consumption,109 the most recent estimate (March 2009) from the Energy Information
Administration forecasts that oil imports will decline “sharply” in the next few years and then
continue a gradual decline.110 Although earlier estimates (projections made prior to 2009)
indicated that consumption would continue to increase, the EIA 2009 projection shows a decline
from 2005 through 2010 (Figure 4).111 Depending on the magnitude of the projected decline in
imports, the potential threat of future oil spills from tankers and tank barges may decline to some
degree. However, Figure 4 illustrates that the United States will continue to import a substantial
percentage of the oil it consumes.112
108 Energy Information Administration (EIA), Annual Energy Outlook 2009 (hereinafter EIA 2009 Report), March
2009, at http://www.eia.doe.gov/.
109 See the 2007 version (and earlier editions) of the EIA’s Annual Energy Outlook.
110 EIA 2009 Report.
111 EIA 2009 Report, Table 11.
112 EIA 2009 Report.
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Figure 4. U.S. Petroleum Imports and Consumption:
1990-2005 (Actual) and 2010-2025 (Projected)
8,000,000
ls
e 7,000,000
rr 6,000,000
Ba 5,000,000
of 4,000,000
nds 3,000,000
a
s 2,000,000
1,000,000
hou
T
0
1990
1995
2000
2005
2010
2015
2020
2025
Imports
Consumption
Source: Prepared by CRS with data from the fol owing: actual import data (1990-2005) from Energy Information
Administration (EIA) online statistics, at http://www.eia.doe.gov, and projected import data (2010-2025) and all
consumption data from EIA Annual Energy Outlook 2009 (table 11).
Nonetheless, a potential for spills does not necessarily correspond with a higher spill frequency.
U.S. oil consumption has been steadily rising for at least two decades,113 during which time the
number of oil spills in coastal waters has declined (Figure 1). Between 1995 and 2004, the
number of annual spills declined by approximately 50% (Figure 5). Between 2002 and 2004 (the
most recent three-year span for which data are available), the annual number of spills in coastal
waters from all combined sources remained consistent, averaging 263 incidents per year.114 This
three-year span also shows that while the number of annual spills may remain constant, the
annual spill volume can fluctuate. The 2004 spill volume was almost four times greater than the
volume spilled in 2003, yet the number of spill incidents was nearly identical. As mentioned
above, early data115 indicate that spill volume in 2005 was substantially higher than recent years,
due to spills associated with Hurricanes Katrina and Rita.
113 The increase in U.S. oil consumption may have started even earlier. The EIA historical data only go back to 1981.
EIA online petroleum statistics, “Total Crude and Petroleum Products Supplied,” (historical data), at
http://www.eia.doe.gov.
114 See USCG Oil Spill Compendium.
115 The Coast Guard database contained data through 2004 at the time of this report, but MMS has data related to
offshore oil production for 2005.
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Figure 5. Volume and Number of Oil Spills for Incidents
Above 100 Gallons in U.S. Coastal Waters, 1995-2004
3,500,000
600
N
3,000,000
500
u
mb
2,500,000
400
e
2,000,000
r o
llons
300
a
1,500,000
f S
G
200
p
1,000,000
il
ls
500,000
100
-
-
95
96
97
98
99
00
01
02
03
04
19
19
19
19
19
20
20
20
20
20
Total Volume
Spill Incidents
Source: Prepared by CRS with data from the USCG Oil Spill Compendium.
Other variables may play a role in the oil spill equation. Oil vessel upgrades (i.e., double hulls)
are still ongoing: two important deadlines, 2010 and 2015,116 will yield a higher percentage of
double-hulled vessels in U.S. waters. These improvements may help keep the number of spills
low.
Pipeline transportation may increase if imported oil decreases (assuming oil consumption
continues to increase). Approximately 170,000 miles of oil pipeline in the United States carry
more than 75% of the nation’s crude oil and around 60% of its refined petroleum products.117 The
nation’s oil pipeline infrastructure is old, and in some (perhaps many) areas, pipelines are
operating well beyond their intended service life.118 As this infrastructure is increasing utilized,
the threat of oil spills may increase. However, pipeline safety and security issues have generated
interest in recent years, and Congress has addressed some concerns in legislation. For more
information on these developments, see CRS Report RL33347, Pipeline Safety and Security:
Federal Programs, by Paul W. Parfomak.
U.S. Oil Imports and Possible Spills
The United States will obtain its oil from a combination of domestic and foreign sources. The
ratio of this mix and the method of its delivery could play a role in the number and volume of oil
spills in the coming years. The following sections discuss this delivery system and its
implications for oil spills in greater detail.
116 Barring a few exceptions, single-hull vessels over 5,000 gross tons may not operate in U.S. waters after January 1,
2010. Single-hull vessels below 5,000 gross tons (chiefly barges) and other previously excepted vessels (e.g., lightering
vessels or those upgraded with double-sides or bottoms) must have double hulls by January 1, 2015. OPA Section 4115
(codified at 46 U.S.C. 3703a).
117 Bureau of Transportation Statistics (BTS), “National Transportation Statistics” (2008), at http://www.bts.gov/
publications/national_transportation_statistics/html/table_01_10.html.
118 See, for example, National Research Council, Improving the Safety of Marine Pipelines, National Academies of
Science, 1994, p. 45, and Epstein, Paul (editor), Oil: A Life Cycle Analysis of its Health and Environmental Impacts,
Harvard Medical School’s Center for Health and the Global Environment, March 2002, p. 21.
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Only Canada delivers oil by pipeline to the United States. Although Canada is the leading single
source of U.S. oil imports,119 the vast majority of U.S. oil imports arrive via vessel. (See Figure
6.)
Figure 6. U.S. Petroleum Imports by Mode of Transportation (1995-2007)
6,000,000
5,000,000
ls
rre
4,000,000
a
B
of
3,000,000
nds
a
2,000,000
Thous
1,000,000
-
1995
1997
1999
2001
2003
2005
2007
Vessel Imports
Pipeline Imports
Source: Prepared by CRS with data from EIA online statistics (U.S. Imports by Country of Origin), at
http://www.eia.doe.gov.
Note: Pipeline imports represent imports from Canada; vessel imports are from al other nations.
Most of the U.S. oil imports (55%) arrive via the Gulf Coast (Figure 7).120 Of the oil spills within
the Coast Guard’s jurisdiction (i.e., marine and coastal areas), approximately 50% of the incidents
and the volume spilled have occurred in the Gulf of Mexico and its shoreline states.121 The Gulf
will likely remain an area of special attention, because the number of vessels arriving with oil will
increase in coming years.
119 Approximately 18% of total U.S. oil imports came from Canada in 2007. Energy Information Association,
Petroleum Statistics, U.S. Imports by Country of Origin, available at http://www.eia.doe.gov.
120 Although most crude oil (62%) enters the United States through the Gulf, most of the petroleum products (70%)
enter through ports on the east coast. EIA online statistics (Imports by Area of Entry), available at
http://www.eia.doe.gov.
121 USCG Spill Compendium, Cumulative Data And Graphics For Oil Spills (1973-2004), at http://www.uscg.mil/hq/g-
cp/comrel/factfile/index.htm.
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Figure 7. Average Annual Distribution of U.S. Oil Imports by Geographic Region
Rocky
West Coast
Mountains
9%
East Coast
3%
23%
Midw est
9%
Gulf Coast
56%
Source: Prepared by CRS with data from EIA online statistics (Imports by Area of Entry), available at
http://www.eia.doe.gov.
Note: The above reflects an average of the years 2000-2007.
Domestic Oil Transportation and Possible Spills
Although U.S. imports and consumption increased between 1990 and 2005, total domestic
transportation of crude oil and petroleum products (measured in billions of ton miles)122 declined
by 16% during this time (Figure 8). At first glance, this information appears incongruous;
however, further analysis reveals that the overall decline is attributable to a 50% decrease in
Alaskan oil production that has occurred between 1990 and 2005.123 Alaskan oil travels long
distances via pipeline (across Alaska) and vessel (to the West Coast of the United States) and has
historically accounted for a significant percentage of oil in domestic transportation. Therefore, the
production of Alaskan oil and its distance traveled will have a strong influence on the overall
measure of domestic transportation of oil.
122 Note that using this unit of measure is different from using volume alone. With this measure, distance traveled is as
important a factor as volume.
123 Alaskan crude oil production yielded 647,309 barrels in 1990 but declined to 315,420 barrels by 2005. Production
decline further to 262,434 barrels in 2007 (EIA website, Petroleum, “Crude Oil Production”).
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Figure 8. Domestic Transportation of Crude Oil and Petroleum Products by Mode,
1990-2004
1200.0
s 1000.0
ile
M
800.0
Ton
600.0
of
400.0
illions
200.0
B
0.0
90
92
94
96
99
01
03
19
1991 19
1993 19
1995 19
1997 1998 19
2000 20
2002 20
2004
Pipelines
Water Carriers
Total Transported
-
Source: Prepared by CRS with data from Association of Oil Pipelines, Shifts in Petroleum Transportation, June
2006, available at http://www.aopl.org.
In recent years, total domestic transportation has shown a modest increase (Figure 8). Although
the total increase is relatively small,124 transportation for the continental United States is likely
increasing more substantially, considering the context of a continuous decline from Alaskan oil
production.125 As mentioned previously, an increase in oil transportation will not necessarily yield
more oil spills, but it may increase the possibilities for spills to occur.
Level of Preparedness
Although many consider the United States’ spill record over the last 15 years, particularly for
major spills, to have been favorable, the absence of a major spill raises at least one issue. Because
the nation has not been forced to respond to a major oil spill for such a long period, some have
voiced concern that the nation might have lost the expertise and institutional knowledge
necessary for quick and effective response action. The USCG found evidence to support this
concern after the 2004 Spill of National Significance (SONS) exercise.126 The After Action
Report concluded:
Oil spill response personnel did not appear to have even a basic knowledge of the equipment
required to support salvage or spill cleanup operations.... There was a shortage of personnel
with experience to fill key positions. Many middle-level spill management staff had never
124 The total value increased from 873 billion ton miles in 2000 to 903 billion ton miles in 2004.
125 The degree of increase for oil transportation within the continental United States is uncertain, because the segregated
data are not readily available.
126 The California SONS 2004 was conducted in April 2004 and was the fourth SONS exercise performed by the
USCG. The purpose of the SONS exercises is to ensure and evaluate the readiness of personnel to respond to a major
oil spill. The 2004 SONS exercise was the largest to date and the first international SONS (involving Mexico).
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worked a large spill and some had never been involved in an exercise. As a result, some
issues and complex processes unique to spill response were not effectively addressed.127
Congress might consider oversight to monitor this situation as the USCG conducts periodic
SONS exercises.
127 U.S. Department of Homeland Security, U.S. Coast Guard, California SONS 2004: After Action Report, September
2004, p. 46.
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Appendix. Additional Statistical Information
Regarding Oil Spills
Sources of Oil Inputs to U.S. Coastal Waters
Oil enters the coastal waters of the United States from a wide variety of sources. These sources
comprise four major categories: natural seeps, oil consumption, oil transportation, and oil
extraction.128 The majority of oil inputs are from natural seeps—geologic openings on the ocean
floor. (See Figure A-1.) Well-known natural seeps are found in the Gulf of Mexico and off the
coast of southern California, regions with extensive oil exploration and production. Although the
seeps release large volumes of oil each year,129 the surrounding ecosystem can adapt, and even
thrive, because the rate of release is relatively slow.130
Figure A-1. Percentage Contribution of Oil Inputs into
North American Coastal Waters, by Major Source Categories
(based on average annual releases, 1990-1999)
Oil Consumption
33%
Natural Seeps
62%
Oil
Transportation
4%
Oil Extraction
1%
Source: Prepared by the Congressional Research Service (CRS) with data from the National Research Council
(NRC) of the National Academies of Science, 2003, Oil in the Sea III: Inputs, Fates, and Effects, p. 69.
Releases associated with petroleum consumption activities account for the vast majority of oil
introduced to the coastal environment through human behavior. Rivers and man-made
conveyances, such as storm-water drains, receive oil from numerous non-point sources (e.g.,
urban runoff) and carry the oil to coastal waters. These sources are frequent and widespread, but
128 NRC report, pp. 67-88.
129 The NRC report (p. 69) estimates that natural seeps off North America release 47 million gallons of oil each year
(converted from tonnes).
130 NRC report, p. 2.
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their rates of release are relatively slow and occur over a long period of time. Moreover, both the
quantitative value and the environmental fate of these sources are poorly understood.131
Oil transportation and oil extraction represent, on an annual average basis, a minor input to
coastal waters. (See Figure A-1.) Unlike the other categories, which generally release oil at a
slow rate over a wider geographic area, transportation and extraction releases can occur as major
spills. Statistics for oil vessel transportation are provided in Figure 2 at the beginning of this
report. Spills from oil extraction operations are discussed later in this Appendix.
Spills from Facilities and Pipelines
The volume of oil spills from facilities and pipelines has declined since the 1980s (see Figure A-
2). Over the most recent five-year span of data (2000-2004), pipeline spill volume was especially
low (compared with previous years), averaging only about 12,000 gallons of spilled oil per year;
during the first five-year span (1980-1984), the average annual pipeline spill volume was 2.5
million gallons.
Figure A-2. Volume of Oil Spills into U.S. Coastal Waters from
Facilities and Pipelines, 1980-2004
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
llons
a
2,000,000
G
1,500,000
1,000,000
500,000
-
80
90
92
94
04
19
1982 1984 1986 1988 19
19
19
1996 1998 2000 2002 20
Facilities
Pipelines
Source: Prepared by CRS with data from USCG Oil Spill Compendium.
Note: The above USCG data includes incidents from land-based facilities and pipelines, as well as oil industry
facilities and pipelines in state (nearshore) and federal (offshore) waters.
The number of spills from pipelines in U.S. waters began to decline in the mid-1980s (Figure A-
3). According to the Coast Guard data, there were only two spills between 2002 and 2004, each
spill releasing approximately 15,000 gallons of oil. This low number of pipeline spills may be
misleading, because some incidents might not be captured by the Coast Guard’s database. In a
disclaimer on it website, the Coast Guard points out that its Oil Spill Compendium includes spills
131 The range of uncertainty of land-based runoff is substantial, from a minimum estimate of 5.6 million gallons to 588
million gallons (based on average, annual releases from 1990-1999). NRC report, pp. 69, 87.
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
“investigated” by the Coast Guard.132 Some spills in coastal waters may be under another
agency’s jurisdiction, such as the Office of Pipeline Safety or Minerals Management Service.
Although the Coast Guard still includes some of these spills in the database, others are not
included.
Spills from facilities have not followed a pattern of steady decline since 1980, but have fluctuated
over the last two decades. However, in recent years the number of annual spills has been
relatively stable.
Figure A-3. Annual Number of Spills to U.S. Waters from
Facilities and Pipelines, 1980-2004
3,000
2,500
2,000
1,500
1,000
500
-
86
94
96
04
1980
1982
1984
19
1988
1990
1992
19
19
1998
2000
2002
20
Facilities
Pipelines
Source: Prepared by CRS with data from the USCG Oil Spill Compendium.
Spills from Oil Exploration and Production Operations
As depicted in Figure A-1, oil extraction activities contribute approximately 1% of the total oil
input to North American waters. The vast majority (95%) of this (1%) oil extraction input comes
from operational discharges, which are regulated by a Clean Water Act permit system. Thus, oil
extraction spills represent, on an annual basis, only a relatively minor (only 0.05%) component of
the total input to North American waters.
However, oil well blowouts from offshore oil extraction operations have historically been a
source of major oil spills. The largest accidental oil spill in world history—the IXTOC I,
estimated at 140 million gallons—was due to an oil well blowout in Mexican Gulf Coast waters
in 1979.133 A 1969 well blowout off the coast of Santa Barbara released approximately 4 million
gallons into the environment and has been credited with catalyzing some of the landmark
environmental legislation of the 1970s.
132 See Oil Spill Compendium at http://www.uscg.mil/hq/g-cp/comrel/factfile/index.htm.
133 NRC report, p. 33.
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
The spill record for offshore platforms in federal waters134 was noteworthy during the 1980s and
1990s. According to the Minerals Management Service (MMS)135 oil spill database, there were no
oil spills over 1,000 barrels136 from federally regulated offshore facilities between 1981 and 2001
(Figure A-4). This effort was achieved in the context of increasing oil production on the outer
continental shelf (OCS).137
Since 2002, there have been six offshore facility spills in federal waters over 1,000 barrels, the
largest estimated at 2,000 barrels (84,000 gallons). Annual spill volumes from offshore facilities
in federal waters have increased in recent years (Figure A-4). Part of the recent increase in
facility spill volume is attributable to a more comprehensive reporting regime. For example, tanks
or machines with oil that are lost at sea during hurricanes are now counted as spills.138
As Figure A-4 indicates, there were several years in which offshore pipelines contributed a
relatively minor (or zero) spill volume. However, periodic large spills generated the vast majority
of the spill volume from offshore operations between 1985 and 2000. For example, in 1988, there
was only one pipeline spill over 1,000 barrels, but that one incident released 15,576 barrels into
the environment (654,192 gallons).
The vast majority of the offshore spills in federal waters have taken place in the Gulf of Mexico.
In fact, there have been only four spills greater than 50 barrels (2,100 gallons) in the Pacific
Region since 1985, none occurring after 1996.139
134 Federal waters extend 200 nautical miles from shore but do not include the waters adjacent to shore that are under
state control (as discussed earlier in this report).
135 The MMS, in the U.S. Department of Interior, is the federal agency responsible for managing the oil and gas
resources on the outer continental shelf.
136 1,000 barrels = 42,000 gallons.
137 The annual crude oil production in the Gulf of Mexico (the primary source of offshore crude oil) increased by 112%
from 1981 to 2001. Energy Information Administration, Crude Oil Production statistics, at http://www.eia.doe.gov/.
138 Per August 15, 2006, telephone conversation with MMS official.
139 MMS Oil Spill database, at http://www.mms.gov/incidents/pollution.htm.
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Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress
Figure A-4. Annual Oil Spill Volume for Spills Greater than 50 Gallons from
Oil Exploration and Extraction Activities in Federal Waters on the
Outer Continental Shelf (1985-2007)
900,000
800,000
700,000
600,000
s
n
500,000
llo
400,000
Ga
300,000
200,000
100,000
-
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
0
0
0
0
0
0
0
0
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
OCS Pipelines
OCS Facilities
Source: Prepared by CRS with data from the Minerals Management Service (MMS) spill database, at
http://www.mms.gov/incidents/IncidentStatisticsSummaries.htm.
Note: The MMS database includes spills from chemicals (e.g., methanol), but the above only includes spills of
crude oil and petroleum products.
Although Figure A-4 and the above discussion pertain only to federal waters, there are numerous
platforms and pipelines in state waters as well. The majority of the oil extraction operations are
located in state waters off the coast of Louisiana and Texas. The precise volume and incident
frequency in state waters are difficult to determine. The NRC report describes the data as
“generally lacking,”140 but the report estimates that oil spills from operations in state waters
account for twice the oil discharges of activities in federal waters.141 This estimate is noteworthy
considering that spills in state waters present a potentially greater threat to the more sensitive
shoreline environments.
140 NRC report, p. 193.
141 NRC report, p. 38.
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Author Contact Information
Jonathan L. Ramseur
Analyst in Environmental Policy
jramseur@crs.loc.gov, 7-7919
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