A bill to impose special fees on the ocean disposal of municipal sludge, to prohibit disposal of municipal sludge into the ocean after December 31, 1991, and for other purposes.

Amends the Marine Protection, Research, and Sanctuaries Act of 1972 to prohibit any person from dumping municipal sludge into the ocean without having obtained from the Administrator of the Environmental Protection Agency a permit imposing a special disposal fee for each dry ton dumped. Requires permittees to: (1) deposit 75 percent of such fees in a trust account for subsequent use on projects to eliminate ocean dumping after 1991; and (2) pay 25 percent of such fees to the Administrator for sludge disposal enforcement, research, reporting, and permit activities. Authorizes the Administrator to waive all or part of the fee requirement for permittees who have entered into and are adhering to a binding, enforceable agreement for the phasing out and termination of the ocean dumping of municipal sludge by 1992.

Directs the Administrator to report to the Congress at six-month intervals on land-based disposal options for municipal sludge and the progress made by permittees toward the cessation of ocean dumping of such sludge. Outlaws the ocean dumping of municipal sludge after 1991. Imposes penalties for each day of noncompliance with this Act's requirements.