A bill to prohibit the ocean dumping of sewage sludge, and for other purposes.

Title I: Ocean Dumping of Sewage Sludge - Amends the Marine Protection, Research, and Sanctuaries Act of 1972 to prohibit the issuance of permits authorizing ocean dumping of sewage sludge after 1992.

Waives the tax imposed on ocean dumping of sewage sludge under title II of this Act for permittees who enter into a compliance agreement with the Administrator of the Environmental Protection Agency by January 1, 1989, which phases out and terminates ocean dumping of sewage sludge by 1993 and sets forth a schedule for the implementation of an alternative sludge disposal system. Requires permittees who are not subject to such waiver to deposit the equivalent of 60 percent of title II taxes into a trust account to be used for the development and implementation of long-term environmentally sound alternatives to ocean disposal of sewage sludge and improvements in sewage sludge pretreatment, treatment, and storage techniques.

Establishes a fund, into which 15 percent of title II taxes shall be deposited, for sludge disposal research, reporting, permit, and enforcement activities.

Directs the Administrator to report to the Congress at six-month intervals on land-based disposal options for sewage sludge and the progress made by permittees toward the cessation of ocean dumping of such sludge. Requires the appropriate congressional committees to hold hearings and issue a report should the Administration find a permittee unable to cease ocean dumping of sewage sludge by 1993.

Title II: Tax on Ocean Dumping of Sewage Sludge - Amends the Internal Revenue Code to impose a tax against those who dump sewage sludge into the ocean, imposing a stiffer tax upon the approach of 1993 and against those who lack a permit. Allows permittees a tax credit or refund for amounts deposited into the trust account established under title I. Transfers 25 percent of the tax revenues to the Hazardous Substance Superfund.

Title III: Discharging into Marine Waters - Amends the Federal Water Pollution Control Act to set forth provisions identical to those in title I of this Act which shall be applicable to discharges into marine waters that are regulated under such Act.

Title IV: Tax on Discharging into Marine Waters - Amends the Internal Revenue Code to impose a tax against those who discharge sewage sludge and any other material subject to specified Federal Water Pollution Act guidelines into marine waters, imposing a stiffer tax upon the approach of 1993 and against those who lack a permit. Allows permittees a tax credit or refund for amounts deposited into the trust account established under title III. Transfers 25 percent of the tax revenues to the Hazardous Substance Superfund.