H.R. 2325 — Comprehensive Oil Pollution Liability and Compensation Act of 1989

 
HR 2325 IH
101st CONGRESS
1st Session
 H. R. 2325
To establish a domestic liability and compensation system for oil pollution
from vessels and facilities and to implement the 1984 Protocols to the 1969
Civil Liability and 1971 Fund Conventions concerning seagoing tanker-source
oil pollution.
IN THE HOUSE OF REPRESENTATIVES
May 11, 1989
Mr. DAVIS (by request) introduced the following bill; which was referred
jointly to the Committees on Public Works and Transportation, Merchant Marine
and Fisheries, and Ways and Means
A BILL
To establish a domestic liability and compensation system for oil pollution
from vessels and facilities and to implement the 1984 Protocols to the 1969
Civil Liability and 1971 Fund Conventions concerning seagoing tanker-source
oil pollution.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE, STATEMENT OF FINDINGS AND DECLARATION OF PURPOSE,
AND TABLE OF CONTENTS.
  (a) SHORT TITLE- This Act may be cited as the `Comprehensive Oil Pollution
  Liability and Compensation Act of 1989'.
  (b) STATEMENT OF FINDINGS AND DECLARATION OF PURPOSE- (1) Major oilspill
  incidents can cause serious environmental and economic damage. Oilspills
  pollute beaches, damage the commercial fishing industry, harm private
  property and natural resources, and can have other significant environmental
  and economic effects. Unlike other types of damages resulting from hazardous
  substances incidents, oilspills pose unique problems and demand unique
  solutions.
  (2) Therefore, it is hereby declared to be the policy of the United States
  and the purpose of this Act to create a unique liability and compensation
  system to address the unique problems presented by oilspills, under which
  it shall be the primary responsibility of the parties responsible for
  a vessel or facility from which oil is discharged to fund the cleanup
  of such pollution when it occurs, and compensate those damaged by such
  pollution. Removal and restoration costs which exceed the limits of liability
  of the responsible party will be compensated from a fund financed from
  fees on oil. Economic damages which exceed the limits of liability of
  the responsible party may be recovered under applicable State laws. The
  Act authorizes the President to order a responsible party to undertake a
  removal action and makes conforming changes to civil and criminal liability
  provisions to accomplish this.
  The goal of this Act is threefold: To strengthen the four existing oil
  pollution liability and compensation regimes under the Federal Water
  Pollution Control Act, the Trans-Alaska Pipeline Authorization Act, the
  Deepwater Port Act, and the Outer Continental Shelf Lands Act to create a
  unified and comprehensive program; two, to establish a domestic liability
  and compensation system financed by vessel and facility owners and the
  oil industry to compensate the United States Government, the States and
  Indian tribes for removal and restoration costs associated with oilspills;
  and three, to provide greater protection from foreign tanker oilspills
  by implementing the 1984 Protocols to the 1969 Civil Liability and 1971
  Fund Conventions.
  (c) Table of Contents-
Sec. 1. Short title and table of contents.
TITLE I--OIL POLLUTION LIABILITY AND COMPENSATION
Sec. 101. Definitions.
Sec. 102. Liability.
Sec. 103. Uses of the fund.
Sec. 104. Claims procedure.
Sec. 105. Designation and advertisement.
Sec. 106. Subrogation.
Sec. 107. Financial responsibility.
Sec. 108. Litigation, jurisdiction, and venue.
Sec. 109. Relationship to other law.
Sec. 110. Effective date.
Sec. 111. Federal cause of action based on State or other Federal law.
TITLE II--CONFORMING AMENDMENTS
Sec. 201. Trans-Alaska pipeline fund.
Sec. 202. Intervention on the High Seas Act.
Sec. 203. Federal Water Pollution Control Act.
Sec. 204. Deepwater Port Act.
Sec. 205. Outer Continental Shelf Lands Act Amendments.
Sec. 206. Enforcement of Federal Water Pollution Control Act.
Sec. 207. Title 26, United States Code
TITLE III--IMPLEMENTATION OF INTERNATIONAL CONVENTIONS
Sec. 301. Definitions.
Sec. 302. Applicability of conventions.
Sec. 303. Recognition of international fund.
Sec. 304. Action in United States courts.
Sec. 305. Contribution to international fund.
Sec. 306. Recognition of foreign judgments.
Sec. 307. Financial responsibility.
Sec. 308. Regulations.
TITLE I--OIL POLLUTION LIABILITY AND COMPENSATION
SEC. 101. DEFINITIONS.
  For the purposes of this Act, the term--
  (1) `act of God' means an unanticipated grave natural disaster or other
  natural phenomenon of an exceptional, inevitable, and irresistible
  character the effects of which could not have been prevented or avoided
  by the exercise of due care or foresight;
  (2) `claim' means a demand in writing for a sum certain;
  (3) `claimant' means any person who presents a claim for compensation
  under this Act;
  (4) `costs', except where the context indicates otherwise, means removal
  costs, restoration costs, and restoration assessment costs;
  (5) `damages' means damages for economic loss specified in section 102(a)(3)
  of this Act;
  (6) `discharge' means any emission (other than natural seepage), intentional
  or unintentional, and includes, but is not limited to, spilling, leaking,
  pumping, pouring, emitting, emptying, or dumping;
  (7) `exclusive economic zone' means the zone established by Presidential
  Proclamation numbered 5030, dated March 10, 1983;
  (8) `facility' means an onshore facility or an offshore facility other
  than a public facility;
  (9) `foreign offshore unit' means a structure or group of structures which
  is located, in whole or in part, in the territorial sea or on or over
  the continental shelf of a foreign country and is or was used for one or
  more of the following purposes: exploring for, drilling for, producing,
  storing handling, transferring, processing, or transporting oil produced
  from the seabed beneath the foreign country's territorial sea or from the
  foreign country's continental shelf;
  (10) `Fund' means the Oilspill Liability Trust Fund, established by section
  9509 of the Internal Revenue Code of 1954;
  (11) `gross ton' means tonnage measured in accordance with the provisions
  of the International Convention on Tonnage Measurement of Ships, 1969;
  (12) `guarantor' means any person, other than the responsible party,
  who provides evidence of financial responsibility for a responsible party
  under this Act;
  (13) `incident' means any occurrence or series of occurrences having the
  same origin, involving one or more vessels, facilities, or any combination
  thereof, resulting in the discharge or substantial threat of discharge
  of oil;
  (14) `Indian tribe' means any Indian tribe, band, nation, or other organized
  group or community, but not including any Alaska Native regional or village
  corporation, which is recognized as eligible for the special programs and
  services provided by the United States to Indians because of their status
  as Indians;
  (15) `lessee' means a person holding a leasehold interest in an oil or gas
  lease on lands beneath navigable waters (as such term is defined in section
  2 of the Submerged Lands Act (43 U.S.C. 1301)) or on submerged lands of
  the Outer Continental Shelf, granted or maintained under applicable State
  law or the Outer Continental Shelf Lands Act;
  (16) `mobile offshore drilling unit' (MODU) means a vessel capable of use
  as an offshore facility;
  (17) `National Contingency Plan' means the National Contingency Plan
  published under section 311(c) of the Federal Water Pollution Control Act or
  revised pursuant to section 105 of the Comprehensive Environmental Response,
  Compensation, and Liability Act;
  (18) `natural resources' includes land, fish, wildlife, biota, water, ground
  water, drinking water supplies, and other such resources belonging to,
  managed by, held in trust by, appertaining to, or otherwise controlled by
  the United States (including the resources of the exclusive economic zone),
  any State or local government or Indian tribe, or any foreign government;
  (19) `navigable waters' means the waters of the United States, including
  the territorial sea;
  (20) `offshore facility' means--
  (A) a facility of any kind (other than a vessel, or a public vessel or
  facility), which is located, in whole or in part, on lands beneath navigable
  waters (as such term is defined in section 2 of the Submerged Lands Act (43
  U.S.C. 1301) or on the Outer Continental Shelf and is or was used for one
  or more of the following purposes: exploring for, drilling for, producing,
  storing, handling, transferring, processing, or transporting oil produced
  from lands beneath navigable waters of the Outer Continental Shelf; and
  (B) also means a deepwater port licensed under the Deepwater Port Act of
  1974, as amended;
  (21) `oil' means crude petroleum oil, residual fuel oil, any refined
  petroleum product or fraction or residue therefrom, but does not include
  petrochemicals;
  (22) `onshore facility' means any facility (including, but not limited to,
  motor vehicles, pipelines and rolling stock) of any kind, other than a
  public facility, any portion of which is located in, on, or under, any
  land within the United States other than submerged land;
  (23) `owner or operator' means (A) in the case of a vessel, any person
  owning, operating, or chartering by demise, such vessel, and (B) in the
  case of an onshore facility, and an offshore facility, any person owning
  or operating such onshore facility or offshore facility, and (C) in the
  case of any abandoned offshore facility, the person who owned or operated
  such facility immediately prior to such abandonment;
  (24) `person' means an individual, corporation, partnership, association,
  State, municipality, commission, or political subdivision of a State,
  or any interstate body;
  (25) `person otherwise subject to the jurisdiction of the United States'
  means any person, whether natural, corporate, or otherwise, who is a
  citizen or national of the United States;
  (26) `permittee' means a person holding an authorization, license, or
  permit for geological exploration issued under section 11 of the Outer
  Continental Shelf Lands Act or applicable State law;
  (27) `public facility' means any facility owned or operated by the United
  States, either directly or by contract with a private party;
  (28) `public vessel' means a vessel owned or bareboat chartered (or
  chartered by demise) and operated by the United States, or by a State or
  political subdivision thereof, or by a foreign nation, except when such
  vessel is engaged in commerce;
  (29) `remove' or `removal' refers to removal of the oil from the water
  and shorelines or the taking of such other actions as may be necessary to
  minimize or mitigate damage to the public health or welfare, including,
  but not limited to, damage to fish, shellfish, wildlife, and public and
  private property, shorelines, and beaches and including actions taken with
  respect to a substantial threat of a discharge;
  (30) `removal costs' means the costs of removal taken after a discharge of
  oil has occurred, or, where there was a substantial threat of a discharge
  of oil, the costs and action taken to prevent, minimize, or mitigate
  oil pollution from that incident. Such removal costs are (1) actual costs
  incurred by the United States, or when under the direction of the responsible
  Federal official, a State or an Indian tribe, not inconsistent with the
  National Contingency Plan, and (2) any other necessary costs of response
  incurred by any other person consistent with the National Contingency Plan.
  (31) `responsible party' means the following:
  (A) VESSELS- In the case of a vessel, the responsible party is any person
  owning, operating, or chartering by demise, the vessel.
  (B) FACILITIES- In the case of a facility (including a pipeline but not
  including any other offshore facility), the responsible party is any person
  owning or operating the facility.
  (C) OFFSHORE FACILITIES- In the case of an offshore facility (other than
  a pipeline or a deepwater port licensed under the Deepwater Port Act of
  1974), and except as provided in section 102(a)(5), the responsible party
  is the lessee or permittee of the area in which the facility is located,
  or the holder of a right of use and easement granted under applicable
  State law or the Outer Continental Shelf Lands Act for the area in which
  the facility is located (where the holder is a different person than the
  lessee or permittee).
  (D) DEEPWATER PORTS- In the case of a deepwater port licensed under the
  Deepwater Port Act of 1974, the responsible party is the licensee.
  (E) ABANDONMENT- In the case of an abandoned vessel, an onshore facility,
  or an offshore facility, or the expiration of a lease, permit, license,
  or right of way, responsible parties shall be the persons who were, or
  would have been, responsible parties immediately prior to the abandonment
  of the vessel, onshore facility, or offshore facility, or the expiration
  of the lease, permit, license, or right of way: Provided, That this Act
  shall not be construed as authorizing abandonment of vessels or facilities;
  (32) `restoration costs' means the sums necessary for the reasonable
  restoration or replacement of natural resources, or reasonable acquisition
  of equivalent natural resources, which have been injured, destroyed,
  or lost, including--
  `(A) as restoration costs, the sums necessary for the restoration or
  replacement of the land, fish, wildlife, biota, water, drinking water
  supplies and other such natural resources, or acquisition of their
  equivalent, which have been injured, destroyed, or lost, and,
  `(B) costs of developing and obtaining plans referred to in paragraph
  (3) of subsection (e) of section 102 of this title and the costs of
  determining the assessment costs under clause (A) of this subsection and
  shall also include the sums necessary for the reasonable restoration or
  replacement of real estate, fish, wildlife, biota, water, ground water,
  drinking water supplies, and other such resources which are privately owned,
  or reasonable acquisition of their equivalent, which have been injured,
  destroyed, or lost, including restoration assessment costs.
  (33) `Secretary' means the Secretary of Transportation;
  (34) `State' means a State of the United States, Guam, Puerto Rico, the
  Virgin Islands, American Samoa, the District of Columbia, the Northern
  Mariana Islands, the Trust Territory of the Pacific Islands, and any other
  territory or possession of the United States.
  (35) `subsistence use' means the customary and traditional uses by
  rural residents of wild, renewable resources for direct personal or
  family consumption, such as food, shelter, fuel, clothing, tools, and
  transportation; for making and selling of handicraft articles out of inedible
  byproducts of fish and wildlife resources taken for personal or family
  consumption; for barter, or sharing for personal or family consumption;
  and for customary trade.
  (36) `tanker' means a vessel constructed or adapted for the carriage of oil
  in bulk or in commercial quantities as cargo; except that the term does
  not include a nonself-propelled vessel of less than three thousand gross
  tons carrying oil in bulk as cargo or in residue from cargo and operating
  on waters of the United States lying inside the baseline from which the
  territorial sea is measured or on waters outside such baseline which are
  part of the Gulf Intracoastal Waterway;
  (37) `territorial sea' means the territorial sea established under
  Presidential Proclamation numbered 5928, December 27, 1988.
  (38) `United States' mean the several States of the United States, the
  District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa,
  the United States Virgin Islands, the Commonwealth of the Northern Marianas,
  and any other territory or possession over which the United States has
  jurisdiction; and
  (39) `vessel' means every description of watercraft or other artificial
  contrivance used, or capable of being used, as a means of transportation
  on water other than a public vessel.
SEC. 102. LIABILITY.
  (a) ELEMENTS OF LIABILITY- (1) JOINT, SEVERAL, AND STRICT LIABILITY-
  Notwithstanding any other provision of law and subject only to the defenses
  in subsection (b), the responsible party or parties for a vessel or a
  facility from which oil is discharged, or which poses the substantial
  threat of a discharge of oil, into or upon the navigable waters or
  adjoining shorelines or the waters of the exclusive economic zone or a
  party liable under paragraph (5) is both jointly and severally liable,
  and strictly liable for the costs, and damages specified in paragraph
  (2) and (3) that arise out of or directly result from such discharge or
  threat of discharge. In addition to actions brought against such responsible
  parties or third parties, such costs and damages shall constitute a maritime
  lien on any vessel owned by such responsible parties or third parties and
  may be recovered in an action in rem in the district court of the United
  States for any district within which any such vessel may be found. In the
  event that a party is determined to be less than 30 per centum liable,
  then that party shall be severally and not jointly liable for damages.
  (2) COVERED REMOVAL COSTS AND RESTORATION COSTS- (A) REMOVAL COSTS- Removal
  costs shall be recoverable by any claimant incurring the removal costs.
  (B) RESTORATION COSTS- restoration costs shall be recoverable by the United
  States trustee, State trustee, or Indian tribal trustee.
  (C) REBUTTABLE PRESUMPTION- There shall be a presumption, rebuttable only
  by clear and convincing evidence, that--
  (i) all removal costs actually incurred by the United States, including
  all internal agency costs necessitated by the incident, were consistent
  with the National Contingency Plan;
  (ii) all determinations made by the United States pursuant to section 301(C)
  of the Comprehensive Environmental Response, Compensation and Liability Act,
  and implementing regulations, as to the extent of injury to, destruction of,
  or loss of natural resources and the monetary amount of damages resulting,
  including the cost of assessing such injury, destruction, or loss, are
  reasonable; and
  (iii) all compensation actually paid by the Fund pursuant to claims
  submitted under section 104 was in a proper amount and that such costs or
  damages were not attributable to any act or omission on the part of the
  United States or any entity from which it acquired rights by subrogation.
  (3) COVERED DAMAGES- The damages for economic loss referred to in paragraph
  (1) are the following:
  (A) REAL OR PERSONAL PROPERTY- Damages for injury to, or economic losses
  resulting from destruction of, real or personal property (not otherwise
  recoverable under paragraph (2)(B) of this subsection), which shall be
  recoverable by a claimant who owns or leases such property.
  (B) SUBSISTENCE USE- Damages for loss of subsistence use of natural
  resources, which shall be recoverable by any claimant who so used natural
  resources which have been injured, destroyed, or lost.
  (C) REVENUES- Damages equal to the loss of property taxes, royalties, rents,
  or net profit shares, for a period not to exceed one year, due to the injury,
  destruction, or loss of natural resources, which shall be recoverable by the
  Government of the United States, a State, or a political subdivision thereof.
  (D) PROFITS AND EARNING CAPABILITY- Damages equal to the loss of profits or
  impairment of earning capacity due to the injury, destruction, or loss of
  natural resources, which shall be recoverable by any claimant who derives
  at least 25 per centum of his or her earnings from the activities which
  utilize such natural resources, or, if such activities are seasonal in
  nature, 25 per centum of his or her earnings during the applicable season.
  (4) Division of responsibility for modu discharges on or above the water-
  (A) TREATED FIRST AS A TANKER- For purposes of determining the responsible
  party and applying this Act, a mobile offshore drilling unit which is being
  used as an offshore facility shall be deemed to be a tanker with respect
  to the discharge, or the substantial threat of a discharge, of oil on or
  above the surface of the water, except as provided in subparagraph (B).
  (B) TREATED AS A FACILITY FOR EXCESS LIABILITY- To the extent that removal
  costs and damages from any incident described in subparagraph (A) exceed
  the amount for which the responsible party is liable under subparagraph
  (A) (as such amount may be limited under subsection (c)(1)(A)), the mobile
  offshore drilling unit shall be deemed to be an offshore facility.
  (5) LIABILITY OF THIRD PARTIES- (A) IN GENERAL- In any case where the
  responsible party for a vessel or facility can prove that an incident was
  caused solely by an act or omission of one or more third parties (or in
  the case of the United States Government, solely by the negligence of that
  Government) in accordance with subsection (b)(1)(B) (or solely by such an
  act or omission or negligence in combination with an act of God or an act
  of war), such third party or parties shall be liable under this section.
  (B) LIMITATION APPLIED- (i) OWNER OR OPERATOR OF VESSEL OR FACILITY-
  If such third party or parties are the owner or operator of a vessel or
  facility which caused the incident, the liability of such third party
  or parties shall be subject to the limits provided in subsection (c),
  as applied with respect to such vessel or facility.
  (ii) OTHER CASES- In any other case, the liability of such third party or
  parties shall not exceed the limitation which would have been applicable
  to the responsible party of the vessel or facility from which the discharge
  actually occurred if such responsible party were liable.
  (C) This subparagraph applies to cases to which subparagraph (A) of this
  paragraph applies, when the vessel or facility from which the discharge
  occurred carried oil as cargo, or handled or stored oil in bulk. The
  responsible party of that vessel or facility shall pay all costs or damages
  for which it would otherwise have been liable absent the defenses provided
  under subsection (b)(1)(B), (b)(1)(C), or (b)(1)(D) of this section. Upon
  such payments the responsible party shall be subrogated to all rights to
  recover such costs or damages under this paragraph.
  (b) EXCLUSIVE DEFENSES TO LIABILITY- (1) COMPLETE DEFENSES- Except when
  the responsible party has failed or refused to report the incident where
  required by law and the responsible party knows or has reason to know of
  the incident, and except with respect to an offshore facility, there is
  no liability under subsection (a) if the responsible party proves that
  the incident was solely caused by one, or any combination of the following:
  (A) an act of God, an act of war;
  (B) an act or omission of a third party other than an employee or agent
  of the defendant, or than one whose act or omission occurs in connection
  with a contractual relationship, existing directly or indirectly, with the
  responsible party, if the responsible party establishes by a preponderance
  of the evidence that (a) he exercised due care in light of all relevant
  facts and circumstances, and (b) he took precautions against foreseeable
  acts or omissions of any such third party and the consequences that could
  foreseeably result from such acts or omissions; and
  (C) the negligence of the United States Government, excluding any actions
  which may be taken respecting the discretionary functions decisions
  of location, type, and numbers of aids to navigation or the conduct of
  vessel inspection and merchant marine personnel licensing activities or
  the acquisition and timely dissemination of navigational data to users
  and the identification, survey, and charting of navigational obstacles.
  (2) BARS TO RECOVERY BY PARTICULAR CLAIMANTS- A claimant may not recover
  under subsection (a)--
  (A) as to a particular claimant, other than a natural resource trustee
  acting in its capacity as a natural resource trustee, the incident is
  caused, in whole or in part, by the willful misconduct of that claimant; or
  (B) as to a particular claimant, other than a natural resource trustee
  acting in its capacity as a natural resource trustee, to the extent that
  the incident is caused by the negligence of that claimant except that
  the negligence of any entity of the United States Government shall not
  be imputed to the Fund for the purposes of this paragraph in an action
  brought by the Fund under this title, other than an action for a claim
  which the Fund has paid to that entity.
  (c) LIMITS ON LIABILITY- (1) GENERAL RULE- The total of the liability of a
  responsible party under subsection (a) and any removal costs incurred by,
  or on behalf of, the responsible party with respect to each incident shall
  not exceed--
  (A) $500 per gross ton or $5,000,000, whichever is greater (but not to
  exceed $78,000,000), for any tanker;
  (B) $300 per gross ton or $500,000, whichever is greater, for any other
  vessel; or
  (C) $75,000,000 for any facility.
  (2) EXCEPTIONS- (A) PROXIMATE CAUSE- Paragraph (1) shall not apply if the
  incident was proximately caused by--
  (i) willful misconduct within the privity and knowledge of the responsible
  party; or
  (ii) a violation, within the privity and knowledge of the responsible party,
  of applicable Federal safety, construction, or operating regulations.
  (B) FAILURE OR REFUSAL OF RESPONSIBLE PARTY- Paragraph (1) shall not apply
  if the responsible party fails or refuses--
  (i) to report the incident where required by law and the responsible party
  knows or has reason to know of the incident; or
  (ii) to provide all reasonable cooperation and assistance requested by a
  responsible official in connection with removal activities.
  (3) ADJUSTING LIMITS OF LIABILITY- (A) FACILITIES- The Secretary, and
  with respect to Outer Continental Shelf facilities the Secretary and the
  Secretary of the Department of the Interior, is authorized to establish by
  regulation, with respect to any class or category of facility a maximum limit
  of liability under this section of less than $75,000,000, but not less than
  $8,000,000, taking into account the size, storage capacity, oil throughput,
  proximity to sensitive areas, type of oil handled, history of discharges, and
  other factors relevant to risks posed by the class or category of facility.
  (B) PERIODIC REPORTS- The Secretary shall, from time to time, report to
  the Congress on the desirability of adjusting the limits of liability
  specified in paragraph (1) of this subsection.
  (d) LIABILITY FOR INTEREST- (1) GENERAL RULE- The responsible party or his
  guarantor shall be liable to the claimant for interest on the amount paid
  in satisfaction of a claim under this section for the period described in
  paragraph (2).
  (2) PERIOD- (A) IN GENERAL- Except as provided in subparagraph (B), the
  period for which interest shall be paid under paragraph (1) is the period
  beginning on the date on which removal costs are incurred and, for damages
  on the date on which the claim is presented to the responsible party, or
  guarantor, and ending on the date on which the claimant is paid, inclusive.
  (B) EXCLUSION OF PERIOD DUE TO OFFER BY GUARANTOR- If the responsible
  party or guarantor offers to the claimant an amount equal to or greater
  than that finally paid in satisfaction of the claim, the period described
  in subparagraph (A) shall not include the period beginning on the date
  such offer is made and ending on the date such offer is accepted. If such
  offer is made within sixty days after the date upon which the claim is
  presented pursuant to section 104(a), the period described in subparagraph
  (A) shall not include any period before such offer is accepted.
  (C) EXCLUSION OF PERIODS IN INTEREST OF JUSTICE- The period described in
  paragraph (A) shall not include any period--
  (i) during which a claimant is not paid due to reasons beyond the control
  of the responsible party; and
  (ii) if it would not serve the interest of justice to include such period.
  (D) CALCULATION OF INTEREST- The interest paid under this subsection shall
  be calculated at the average of the highest rate for commercial and finance
  company paper of maturities of one hundred and eighty days or less obtaining
  on each of the days included within the period for which interest must be
  paid to the claimant, as published in the Federal Reserve bulletin.
  (E) INTEREST NOT SUBJECT TO LIABILITY LIMITS- Interest under this paragraph
  shall be in addition to damages for which claims may be asserted under
  section 102 and shall be paid without regard to any limitation of liability
  under subsection (c)(1) of this section. The payment of interest under
  this subsection by a guarantor shall be subject to section 107(e).
  (e) NATURAL RESOURCES- (1) LIABILITY- In the case of an injury to,
  destruction of, or loss of natural resources under this section, liability
  shall be--
  (A) to the United States Government for natural resources belonging to,
  managed by, controlled by, or appertaining to the United States,
  (B) to any State for natural resources within the State or belonging to,
  managed by, controlled by, or appertaining to such State, and
  (C) to any Indian tribe for natural resources belonging to, managed by,
  or appertaining to such tribe.
  (D) where subsection (f) of this section applies, to the government of a
  foreign country for natural resources belonging to, managed by, controlled
  by, or appertaining to such country.
  (2) DESIGNATION OF TRUSTEES- (A) IN GENERAL- The President or the authorized
  representative of any Indian tribe, or the authorized representative
  of any State or of the foreign government, shall act on behalf of the
  public or Indian tribe as trustee of such natural resources to recover
  restoration costs.
  (B) FEDERAL TRUSTEES- The President shall designate the Federal officials
  who shall act on behalf of the public as trustees for natural resources
  under this Act. Such officials shall develop and adopt a plan for the
  reasonable restoration or replacement of, or the reasonable acquisition
  of the equivalent of their resources under their trusteeship that have
  been injured, destroyed, or lost as a result of a discharge of oil and
  may upon request of and reimbursement from a State or Indian tribe and at
  the Federal official's discretion develop and adopt such a plan for those
  natural resources under the State's or tribe's trusteeship.
  (C) STATE TRUSTEES- The Governor of each State shall designate State
  officials who may act on behalf of the public as trustee for natural
  resources under this Act and shall notify the President of such
  designations. Such officials shall develop and adopt a plan for the
  reasonable restoration or replacement of, or the reasonable acquisition
  of the equivalent of those natural resources under the trusteeship.
  (D) NOTICE AND OPPORTUNITY TO BE HEARD- Plans shall be developed and adopted
  under subparagraphs (B) and (C) only after the plans have been made public
  and the public has had an opportunity to submit written comments on the
  plans. Such a hearing shall not constitute an adjudication under section
  504 and the United States Code.
  (E) INDIAN TRIBAL TRUSTEES- The governing body of any Indian tribe shall
  designate tribal officials who may act on behalf of the tribe and its
  members as trustee for natural resources under this Act and shall notify the
  President of such designations. Such officials shall develop and adopt a plan
  for the reasonable restoration or replacement, or the reasonable acquisition
  of the equivalent of those natural resources under the trusteeship.
  (3) DETERMINATION OF COSTS- (A) IN GENERAL- The measure of costs in any
  action under this section for injury to, destruction of, or loss of natural
  resources shall be limited to the sums necessary for the reasonable
  restoration or replacement of the natural resources, or reasonable
  acquisition of equivalent natural resources, so injured, destroyed,
  or lost. Monetary value of the loss of use of injured, destroyed, or
  lost natural resources may be recovered from persons liable under and in
  accordance with section 102 of this Act, but not from the Fund.
  (B) DETERMINE COSTS WITH RESPECT TO PLAN- Costs shall be determined under
  subparagraph (A) with respect to plans adopted under paragraph (2) (B)
  and (C).
  (C) NO DOUBLE RECOVERY- There shall be no double recovery under this Act
  for natural resources restoration costs, including the costs of restoration
  assessment, restoration, replacement, or equivalent acquisition for the
  same incident and natural resource.
  (4) USE OF RECOVERED SUMS- Sums recovered by the United States Government or
  a State or Indian tribe as trustee under this subsection shall be retained
  by the trustee, for use only to perform restoration assessment or reimburse
  trustees for funds expended for removal, restoration assessment, restoration,
  replacement, or acquisition of the equivalent of such natural resources. Sums
  recovered on the basis of the loss of use of injured, destroyed, or lost
  natural resources shall be used for the general enhancement of the ecosystem
  of which the injured, destroyed, or lost natural resources were a part,
  for the purpose of restoring and maintaining the chemical, physical,
  and biological integrity of the affected ecosystem.
  (5) CIVIL PENALTY- This paragraph applies to cases in which, as the result
  of an incident, natural resources, which cannot be restored or replaced and
  for which no equivalent may be acquired, are destroyed by oil pollution. In
  such a case the President or authorized representative of a State or Indian
  tribe, acting under this subsection as trustee, may request the Attorney
  General to bring an action in court to recover from the responsible party,
  or person in charge of the vessel, or facility, a civil penalty of no
  more than $10,000,000 which shall be separate from and in addition to any
  liability of the responsible party for the incident under section 102(c)
  of this Act. In determining the amount of civil penalty the court shall
  consider, inter alia, any culpability of the responsible party, or person
  in charge, any economic benefit derived by the responsible party, or person
  in charge, in connection with the incident, the uniqueness of the natural
  resource destroyed, and the nature and extent of any efforts taken by the
  responsible party, or person in charge, to prevent the destruction of the
  natural resource. No penalty may be imposed under this paragraph which
  is consistent with international law. Recoveries under this paragraph
  shall be paid to the trustee to be used for the general enhancement of
  the ecosystem of which the destroyed natural resource was a part, for the
  purpose of restoring and maintaining the chemical physical and biological
  integrity of the affected ecosystem. Any determination made by a trustee
  under this subsection that a natural resource has been destroyed and that
  it cannot be restored or replaced, and no equivalent for it may be acquired
  shall be within the complete and unreviewable discretion of the trustee.
  (f) RECOVERY BY FOREIGN CLAIMANTS- (1) IN GENERAL- A foreign claimant
  may only recover costs and damages under this Act in accordance with
  this subsection.
  (2) COVERED DISCHARGES- A foreign claimant may recover only if the discharge
  of oil was from--
  (A) a facility,
  (B) a vessel in the navigable waters of the United States, or
  (C) a tanker that received oil at the terminal of the pipeline constructed
  under the Trans-Alaska Pipeline Authorization Act for transportation to a
  port in the United States, the incident having occurred prior to offloading
  at such port, and resulted in the presence of oil in or on the territorial
  sea, internal waters, or adjacent shoreline of a foreign country.
  (3) REQUIREMENTS- A foreign claimant may only recover if--
  (A) the claimant first seeks compensation under title III;
  (B) the claimant has not been otherwise compensated for the costs or
  damages; and
  (C) recovery is authorized by a treaty or executive agreement between the
  United States and the claimant's country, or the Secretary of State, in
  consultation with the Attorney General and other appropriate officials,
  has certified that the claimant's country provides a comparable remedy
  for United States' claimants.
  (4) EXCEPTION FOR CANADIAN CLAIMANTS RESPECTING TRANS-ALASKA PIPELINE OIL-
  Paragraph (3)(C) shall not apply with respect to recovery by a resident
  of Canada in the case of an incident described in paragraph (2)(C).
  (5) DEFINITION OF FOREIGN CLAIMANT- For purposes of this subsection, the
  term `foreign claimant' means any person residing in a foreign country,
  the government of a foreign country, or any agency or political subdivision
  thereof.
  (g) RECOVERY OF REMOVAL COSTS BY RESPONSIBLE PARTY- (1) IN GENERAL- The
  responsible party for a vessel or facility from which oil is discharged,
  or which posed the substantial threat of a discharge of oil, may assert
  a claim against the Fund for removal costs consistent with the National
  Contingency Plan under subsection (a) only if he can show that--
  (A) he is entitled to a defense to liability under subsection (b), or
  (B) he is entitled to a limitation of liability under subsection (c)
  and has exceeded that limitation.
  (2) EXTENT OF RECOVERY- A responsible party who is entitled to a limitation
  of liability, may assert a claim against the Fund under paragraph (1)
  of subsection (a) only to the extent that the sum of the removal costs
  incurred by the responsible party plus the amounts paid by the responsible
  party or by the guarantor on behalf of the responsible party for claims
  asserted under subsection (a) exceeds the amount to which the total of
  the liability under subsection (a) and removal costs incurred by, or on
  behalf of, the responsible party is limited under subsection (c).
  (h) CONTRIBUTION- A person including a responsible party may bring an
  action for contribution against any other person, not to include the United
  States, who is liable or potentially liable under this section. Such an
  action shall be brought in accordance with section 108.
  (i) INDEMNIFICATION AGREEMENTS- (1) IN GENERAL- No indemnification, hold
  harmless, or similar agreement or conveyance shall be effective to transfer
  the liability imposed under this section from the responsible party for any
  vessel or facility or from any person who may be liable for an incident
  under this section to any other person. Nothing in this subsection shall
  bar any agreement to insure, hold harmless, or indemnify a party to such
  agreement for any liability under this section.
  (2) RELATIONSHIP TO OTHER CAUSES OF ACTION- Nothing in this Act, including
  the provisions of paragraph (1) of this subsection, shall bar a cause of
  action that a responsible party subject to liability under this section,
  or a guarantor, has or would have, by reason of subrogation or otherwise
  against any person.
SEC. 103. USES OF THE FUND.
  (a) IN GENERAL- The Fund shall be available to the Secretary without
  further appropriations for--
  (1) the cost of carrying out subsections (c), (d), (i), and (l) of section
  311 of the Federal Water Pollution Control Act, and sections 5 and 7 of
  the Intervention on the High Seas Act, and the reasonable costs incurred
  by the President, a Governor of a State, or equivalent representative of
  any Indian Tribe as trustee in assessing damaged natural resources and
  preparing a restoration and acquisition plan;
  (2) the payment of recoverable costs described in section 102(a)(2) not
  otherwise compensated under this Act;
  (3) the payment of Federal administrative, personnel, and enforcement
  costs and expenses, including audits of the Fund, reasonably necessary
  for and incidental to the administration and implementation of this Act,
  the cost of providing equipment, and other costs for functions related to
  pollution response, and
  (4) the payment of all contributions to the International Fund under title
  III of this Act necessary to comply with United States treaty obligations.
  (b) CLAIMS NOT COVERED BY THE FUND- The Fund shall not be available to
  pay any claim for costs--
  (1) as to a particular claimant, if the incident of oil or economic loss is
  caused, in whole or in part, by the gross negligence or willful misconduct
  of that claimant;
  (2) as to a particular claimant, to the extent that the incident is caused
  by the negligence of that claimant;
  (3) as to a claim for removal costs by a responsible party who is not
  entitled to assert such a claim under subsection (g) of section 102; or
  (4) as to a claim by the United States, where the negligence of the United
  States is the sole cause of the discharge.
  (c) MAXIMUM AMOUNT PAYABLE FROM FUND- The maximum amount which may be paid
  from the Fund with respect to any incident in combination with payment,
  if any, under the International Convention on the Establishment of an
  International Fund for Compensation of Oil Pollution Damage, 1984, shall
  not exceed $500,000,000. Notwithstanding any other provision of law, the
  President is authorized to waive the limit imposed by this subsection and
  to prescribe a higher limit upon a determination that such a waiver is
  necessary and in the best interests of the country.
  (d) FEDERAL, STATE, AND TRIBAL OFFICIALS WHO MAY OBLIGATE FROM THE FUND-
  The Secretary is authorized to promulgate regulations setting up an
  advancing arrangement where one or more Federal officials are designated
  who may obligate money in the Fund in accordance with subsection (a)
  of this section or portions thereof. The Secretary is also authorized to
  delegate to officials of a State with an adequate program operating under a
  cooperative agreement with the Federal Government the authority to decide
  to obligate money in the Fund and to settle claims: Provided, That before
  any such decision becomes legally effective, it must be approved by the
  Secretary or a Federal official designated pursuant to this subsection.
  (e) DRAWS BY STATE AND INDIAN TRIBAL OFFICIALS- (1) ADVANCES, FINANCING
  AGREEMENTS- Pursuant to regulations promulgated under this subsection,
  the Secretary shall issue letters of credit, guarantees, or similar
  financing to each State or tribal governing body for the purposes of this
  subsection. All sums advanced under this subsection shall be paid from the
  Fund. No sums may be advanced or provided under any financing agreement
  for the purposes of this subsection from any source other than the Fund,
  and the United States shall not be liable for such sums other than in
  accordance with this subsection and the regulations promulgated hereunder.
  (2) IMMEDIATE DRAW- Regulations promulgated under this subsection shall
  authorize without any prior condition the Governor of each State or tribal
  governing body or appropriate tribal official designated by a governing
  tribal body, or an appropriate State official designated by the Governor,
  to obligate sums advanced or provided under any financing agreement in an
  amount not to exceed $50,000 for removal costs required for the immediate
  response to a discharge or substantial threat of a discharge of oil into
  or upon the navigable waters or adjacent shorelines.
  (3) NOTIFICATION, ADDITIONAL SUM- A Governor or designee or tribal governing
  body or designee exercising the authority granted by regulations pursuant
  to paragraph (2) of this subsection shall notify the Secretary within
  twenty-four hours of any obligation made thereunder. The regulations
  promulgated under this subsection shall prescribe means by which additional
  sums may be provided to the Governor, or appropriate State official,
  tribal governing body, or appropriate tribal official, for removal costs
  required for further response to the discharge or the substantial threat
  of a discharge. Such sums may be provided as necessary.
  (4) REGULATIONS- Not later than one year after the date of the enactment
  of this Act, the Secretary shall publish proposed regulations detailing,
  inter alia, the manner in which advances and financing agreements are to
  be made under this subsection.
  (f) RIGHTS OF SUBROGATION- Payment of any claim by the Fund under this Act
  shall be subject to the United States Government acquiring by subrogation
  all rights of the claimant to recover from the responsible party, third
  party, and guarantor. In addition, the Fund may recover, in accordance with
  sections 102 and 107, any removal costs, restoration costs, and restoration
  assessment costs paid directly by the Fund from the responsible party,
  third party, and guarantor.
  (g) AUDIT- The Inspector General of the Department of Transportation shall
  audit all payments, obligations, reimbursements, or other uses of the
  Fund in the prior fiscal year, to assure that the Fund is being properly
  administered and that claims are being appropriately and expeditiously
  considered. The Inspector General shall submit to the Congress the results
  of the audits required under this subsection. Each Federal agency shall
  cooperate with the Inspector General in carrying out this subsection.
  (h) PERIOD OF LIMITATIONS FOR CLAIMS- (1) REMOVAL COSTS- No claim may
  be presented under this section for recovery of removal costs unless the
  claim is presented within three years after the date of completion of all
  removal action.
  (2) RESTORATION COSTS OR DAMAGES- No claim may be presented under this
  section for restoration costs or damages unless the claim is presented
  within three years after the date on which the injury necessitating
  such restoration costs and its connection with the discharge in question
  were reasonably discoverable with the exercise of due care, or upon the
  completion of the natural resource damage assessments or, with respect to
  restoration costs if later and to the extent applicable, the date on which
  final regulations are promulgated under section 102(e)(2)(D) of this Act.
  (i) LIMITATION ON PAYMENT FOR SAME COSTS- Where the Secretary has paid
  an amount out of the Fund for any costs specified under subsection (a),
  no other claim may be paid out of the Fund for the same costs or damages.
  (j) OBLIGATION IN ACCORDANCE WITH PLAN- (1) IN GENERAL- Except as provided in
  paragraph (2), amounts may be obligated from the Fund for the restoration,
  or replacement, or acquisition of natural resources only in accordance
  with a plan adopted under section 102(e)(2).
  (2) EXCEPTION- Paragraph (1) shall not apply to costs incurred in connection
  with a situation requiring action to avoid irreversible loss of natural
  resources or to prevent or reduce any continuing danger to natural resources
  or similar need for emergency action.
  (k) RECOVERY FOR WRONGFUL PAYMENT- Without regard to whether a prosecution
  is brought under section 1001 of title 18, United States Code, the Fund
  shall be entitled to recover moneys paid to a claimant. Where an action
  is brought under this subsection the court may, in addition to moneys so
  paid, award the Fund administrative costs incurred respecting such claim
  and interest on such moneys so paid.
  (l) AUTHORITY TO BORROW- (1) Notwithstanding section 9509(d) of the Internal
  Revenue Code of 1954, as revised, the Secretary of the Treasury shall, at
  the request of the Secretary, advance such sums to the Fund in such amount
  and at such times are as necessary: Provided, That amounts advanced shall not
  be greater than $500,000,000; Provided further, That the aggregate amount of
  repayable advances to the Oilspill Liability Trust Fund which is outstanding
  at any one time shall not exceed $500,000,000; And provided further, That
  such advances shall be repaid with interest on or before five years from
  the date the advance is received into the Oilspill Liability Trust Fund.
  (2) Advances made pursuant to this subsection shall be repaid, and interest
  on such advances shall be paid, to the general fund of the Treasury. Such
  interest shall be at rates computed in the same manner as provided in
  section 102(d)(2)(D) and shall be compounded annually.
  (3) INVESTMENT- It shall be the duty of the Secretary of the Treasury to
  invest such portion of the Fund as is not, in his or her judgment, required
  to meet current withdrawals. Such investments shall be in public debt
  securities with maturities suitable for the needs of such Fund and bearing
  interest at rates determined by the Secretary, taking into consideration
  current market yields on outstanding marketable obligations of the United
  States of comparable maturities. The income on such investments shall be
  credited to and form a part of such Fund.
SEC. 104. CLAIMS PROCEDURE.
  (a) PRESENTATION TO RESPONSIBLE PARTY OR GUARANTOR- Except as provided in
  subsection (b), all claims against the Fund for costs shall be presented
  first to all responsible parties, and the guarantor of the source designated
  under section 105(a). In a case where liability is determined in accordance
  with section 302, such claims shall be presented first to the ship's owner
  (as defined in section 301(1)) and to the international fund (as described
  in section 301(5)).
  (b) PRESENTATION TO FUND- Claims for costs may be presented first to
  the Fund--
  (1) by a responsible party who may assert a claim under section 102(g);
  (2) by the Governor of a State or Indian tribal governing body for removal
  costs incurred by that State; or
  (3) by a United States claimant in a case where a foreign offshore unit
  has discharged oil causing costs for which the Fund is liable under
  section 103(a)(2).
  (c) ELECTION- If a claim is presented in accordance with subsection (a) and--
  (1) each person to whom the claim is presented denies all liability for
  the claim, or
  (2) the claim is not settled by any person by payment within one hundred
  and eighty days after the date upon which (A) the claim was presented,
  or (B) advertising was begun pursuant to section 105(b), whichever is
  later, the claimant may elect to commence an action in court against the
  responsible part or guarantor or to present the claim to the Fund.
  (d) UNCOMPENSATED COSTS- If a claim is presented in accordance with
  subsection (a) and full ad adequate compensation is unavailable, either
  because the claim exceeds a limit of liability invoked under section 102 or
  because the responsible party and his guarantor are financially incapable
  of meeting their obligations in full, a claim for the uncompensated costs
  may be presented to the Fund.
  (e) PROCEDURE FOR CLAIMS AGAINST THE FUND- The Secretary may deny,
  compromise, or pay in full any claim against the Fund. The Secretary
  shall promulgate, and may from time to time, amend, regulations for
  the presentation, filing, processing, settlement, and adjudication of
  claims under this Act against the Fund, including but not limited to the
  prioritization of claims if necessary. No action shall be commenced against
  the Fund prior to the expiration of the period prescribed by the Secretary
  by regulation for the exhaustion of administrative remedies against the Fund.
  (f) PENDENCY OF ACTION- No claim against the Fund may be paid during the
  pendency of an action by a claimant in court to recover costs which are
  the subject of the claim.
  (g) PROVIDING COPIES OF COMPLAINTS- Whenever any action is brought under
  this chapter in a court of the United States by a plaintiff other than the
  United States, the plaintiff shall provide a copy of the complaint to the
  Attorney General of the United States and the Fund Administrator.
SEC. 105. DESIGNATION AND ADVERTISEMENT.
  (a) DESIGNATION OF SOURCE AND NOTIFICATION- When the Secretary receives
  information of an incident, he or she shall, where possible and appropriate,
  designate the source or sources of the discharge. If a designated source
  is a vessel or a facility, the Secretary shall immediately notify the
  responsible party and the guarantor, if known, of that designation.
  (b) ADVERTISEMENT BY THE RESPONSIBLE PARTY OR GUARANTOR- If a responsible
  party or guarantor fails to inform the Secretary, within five days after
  receiving notification of a designation under subsection (a), of denial of
  the designation, such party or guarantor shall advertise the designation and
  the procedures by which claims may be presented to such party or guarantor,
  in accordance with regulations promulgated by the Secretary. Advertisement
  under the preceding sentence shall begin no later than fifteen days after
  the date of the designation made under subsection (a). If advertisement
  is not otherwise made in accordance with this subsection, the Secretary
  shall promptly and at the expense of the responsible party or the guarantor
  involved, advertise the designation and the procedures by which claims may
  be presented to the responsible party or guarantor. Advertisement under
  this subsection shall continue for a period of no less than thirty days.
SEC. 106. SUBROGATION.
  (a) IN GENERAL- Any person, including the Fund, who pays compensation
  pursuant to this Act to any claimant for costs, and interest shall be
  subrogated to all rights, claims, and causes of action that the claimant
  has under this Act.
  (b) ACTIONS ON BEHALF OF THE FUND- Upon request of the Secretary, the
  Attorney General may commence an action on behalf of the Fund to recover
  the amount of any compensation paid by the Fund to any claimant pursuant
  to this Act, and all expenses incurred by the Fund by reason of the claim,
  including interest (including prejudgment interest), administrative and
  adjudicative costs, and attorney's fees. Such an action may be commenced
  against any responsible party or (subject to section 107(e)) guarantor,
  or any other person who is liable, pursuant to any law, to the compensated
  claimant or to the Fund, for the costs for which the compensation was
  paid. Such an action shall be commenced against the responsible foreign
  government or other responsible party to recover any costs paid from the
  Fund as the result of the discharge or substantial threat of discharge,
  of oil from a foreign offshore unit.
  (c) ADMINISTRATIVE COST RECOVERY SETTLEMENT AUTHORITY- The Secretary may
  consider, compromise, and settle a claim for removal or resource assessment
  costs incurred by the United States Government or any claim acquired by the
  Fund through subrogation under this Act, if the claim has not been referred
  to the Department of Justice for further action. In the case of any incident
  where the total claims of the fund exceed $500,000 (excluding interest),
  any claims referred to in the preceding sentence may be compromised and
  settled only with the prior written approval of the Attorney General.
SEC. 107. FINANCIAL RESPONSIBILITY.
  (a) VESSELS- (1) REQUIREMENT- The responsible party for any vessesl over
  three hundred gross tons (except a non-self-propelled vessel that does
  not carry oil as cargo or fuel), using any port or place in the United
  States or the navigable waters or any offshore facility shall establish
  and maintain, in accordance with regulations promulgated by the Secretary,
  evidence of financial responsibility sufficient to meet the maximum amount
  of liability to which, in the case of a tanker, the responsible party
  could be subjected under section 102(c)(1)(A) of this Act, or to which,
  in the case of any other vessel, the responsible party could be subjected
  under section 102(c)(1)(B) of this Act, in a case where the responsible
  party would be entitled to limit liability under that section. If the
  responsible party owns or operates more than one vessel requiring evidence
  of financial responsibility, such evidence shall be established for all
  such vessels but in an amount sufficient only to meet the maximum liability
  applicable to the largest of such vessels.
  (2) WITHHOLDING CLEARANCE- The Secretary of the Treasury shall withhold
  or revoke the clearance required by section 4197 of the Revised Statutes
  of the United States of any vessel subject to this subsection that does
  not have the certification required under this subsection.
  (3) DENYING ENTRY TO OR DETAINING VESSELS- The Secretary may (A) deny entry
  to any offshore facility or any port or place in the United States, or to
  the navigable waters, or (B) detain at such a facility or port or place,
  any vessel that, upon request, does not produce the certification required
  under this subsection or the regulations issued under this subsection.
  (b) OFFSHORE FACILITIES- The responsible party with respect to an offshore
  facility shall establish and maintain evidence of financial responsibility
  sufficient to meet the maximum amount of liability to which the responsible
  party could be subjected under section 102 of this Act in a case where the
  responsible party would be entitled to limit liability under that section. In
  cases where a person is the responsible party for more than one facility
  subject to this subsection, evidence of financial responsibility need be
  established only in an amount sufficient to meet the maximum liability
  applicable to any one facility with the highest liability.
  (c) METHODS OF FINANCIAL RESPONSIBILITY- Financial responsibility under
  this section may be established by any one, or by any combination, of the
  following methods, which the Secretary determines to be acceptable: evidence
  of insurance, surety bond, guarantee, qualification as a self-insurer, or
  other evidence of financial responsibility acceptable to the Secretary. Any
  bond filed shall be issued by a bonding company authorized to do business
  in the United States. In promulgating requirements under this section,
  the Secretary is authorized to specify policy or other contractual terms,
  conditions, or defenses which are necessary, or which are unacceptable,
  in establishing such evidence of financial responsibility in order to
  effectuate the purposes of this Act.
  (d) CLAIMS AGAINST GUARANTOR- Any claim for which liability may be
  established under section 102 of this Act may be asserted directly
  against any guarantor providing evidence of financial responsibility for
  a responsible party, or a third party, liable under that section for costs
  and damages to which the claim pertains. In defending against such a claim,
  the guarantor may invoke all rights and defenses which would be available
  to the responsible party under section 102.
  (e) LIMITATION ON GUARANTOR'S LIABILITY- The total liability of any
  guarantor in a direct action suit brought under this section shall be
  limited to the aggregated amount of the monetary limits of the policy of
  insurance, guarantee, surety bond, or similar instrument obtained from the
  guarantor by the person subject to liability. Nothing in this subsection
  shall be construed, interpreted, or applied to diminish the liability of
  any person under this Act or any other law.
  (f) CIVIL PENALTY- (1) IN GENERAL- Any person who, after notice and an
  opportunity for a hearing, is found to have failed to comply with the
  requirements of this section or the regulations issued under this section,
  or with a denial or detention order issued under subsection (a)(3) of
  this section, shall be liable to the United States for a civil penalty,
  not to exceed $25,000 per day of each violation. The amount of the
  civil penalty shall be assessed by the Secretary by written notice. In
  determining the amount of the penalty, the Secretary shall take into
  account the nature, circumstances, extent, and gravity of the violation,
  the degree of culpability, any history of prior violation, ability to pay,
  and such other matters as justice may require. The Secretary may compromise,
  modify, or remit, with or without conditions, any civil penalty which is
  subject to imposition or which has been imposed under this paragraph. If
  any person fails to pay an assessed civil penalty after it has become final,
  the Secretary may refer the matter to the Attorney General for collection.
  (2) JUDICIAL RELIEF- In addition to, or in lieu of, assessing a penalty under
  paragraph (1) of this subsection, the Secretary may request the Attorney
  General to secure such relief as necessary to compel compliance with
  this section, including, but not limited to, a judicial order terminating
  operations. The district courts of the United States shall have jurisdiction
  to grant such relief as the public interest and the equities of the case
  may require.
  (3) REVIEW OF CIVIL PENALTY- Any person against whom a civil penalty is
  assessed under this section may obtain review thereof on the record in
  the appropriate court of the United States by filing a complaint in such
  court within thirty days from the date it becomes final under paragraph
  (1) of this subsection. The Secretary shall promptly file in such court
  a certified copy of the record upon which such violation was found and
  such penalty imposed. The findings and order of the Secretary shall be
  set aside by such court only if they are not found to be supported by
  substantial evidence, as provided in section 706(2) of title 5.
  (4) ACTION UPON FAILURE TO PAY ASSESSMENT- If any person fails to pay
  an assessment of a civil penalty after it has become final, or after the
  appropriate court has entered final judgment in favor of the Secretary,
  the Secretary shall refer the matter to the Attorney General of the United
  States, who shall recover the amount assessed in any appropriate district
  court of the United States. In such action, the validity and apropriateness
  of the final assessment shall not be subject to review.
  (g) CONTINUATION OF REGULATIONS- Any regulation respecting financial
  responsibility, which has been issued pursuant to any provision of law
  repealed or superseded by this Act, and which is in effect on the date
  immediately preceding the effective date of this Act, shall be deemed
  and construed to be a regulation issued pursuant to this section. Such a
  regulation shall remain in full force and effect unless and until superseded
  by new regulations issued under this section.
  (h) UNIFIED CERTIFICATE- The Secretary may issue one certificate of
  financial responsibility for purposes of this Act and the Comprehensive
  Environmental Response, Compensation, and Liability Act of 1980.
SEC. 108. LITIGATION, JURISDICTION, AND VENUE.
  (a) REVIEW OF REGULATIONS- Review of any regulation promulgated under
  this Act may be had upon application by any interested person only in
  the circuit court of Appeals of the Untied States for the District of
  Columbia. Any such application shall be made within ninety days from the
  date of promulgation of such regulations.
  (b) JURISDICTION- Except as provided in subsection (a) of this section, the
  United States district courts shall have original and exclusive jurisdiction
  over all causes of action arising under this Act (which shall be deemed
  to include actions under the International Convention on Civil Liability
  for Oil Pollution Damages, 1984, and the International Convention on the
  Establishment of an International Fund for Compensation for Oil Pollution
  Damage, 1984), without regard to the citizenship of the parties or the
  amount in controversy.
  (c) VENUE- Venue shall lie in any district in which the incident, injury,
  or damages occurred, or in which the defendant resides, may be found,
  has its principal office, or has appointed an agent for services of
  process. For the purposes of this section, the Fund and the International
  Fund, established under article 2 of the International Convention on the
  Establishment of an International Fund for Compensation for Oil Pollution
  Damage, 1984, shall reside in the District of Columbia.
  (d) SAVINGS PROVISION- Nothing in this Act shall affect any action commenced
  before the date of enactment of this Act.
  (e) PERIOD OF LIMITATIONS- (1) DAMAGES FOR ECONOMIC LOSS- Except as provided
  in paragraphs (3) and (4), an action may not be commenced for damages for
  economic loss under this Act, unless that action is commenced within three
  years after the date on which the injury resulting in the damages and its
  connection with the discharge in question were reasonably discoverable
  with the exercise of due care.
  (2) REMOVAL COSTS AND RESTORATION COSTS- Except as provided in paragraphs
  (3) and (4), an action may not be commenced--
  (A) for claims for the recovery of removal costs under this Act, unless
  the action is commenced within three years after the date of completion of
  all removal action, which was instituted and completed within a reasonable
  time following the incident.
  (B) for claims for the recovery of restoration costs under this Act, unless
  that action is commenced within three years after the date on which the
  injury necessitating such restoration costs and its connection with the
  discharge in question were reasonably discoverable with the exercise of
  due care or with respect to restoration costs if later and to the extent
  applicable, the date on which final regulations are promulgated under
  section 102(e)(2)(D) of this Act.
An action may be commenced under section 102 for recovery of removal or
restoration costs at any time after such costs have been incurred but prior
to the conclusion of the time periods set out under clauses (A) and (B)
of this paragraph.
  (3) ACTIONS FOR CONTRIBUTION- An action may not be commenced for contribution
  for any costs or damages unless that action is commenced within three
  years after--
  (A) the date of judgment in any action under this Act for recovery of such
  costs or damages, or
  (B) the date of entry of a judicially approved settlement with respect to
  such costs or damages.
  (4) SUBROGATION- An action based on rights subrogated pursuant to this Act
  by reason of payment of a claim may not be commenced under this Act unless
  that action is commenced within three years after the date of payment of
  such claim.
SEC. 109. RELATIONSHIP TO OTHER LAW.
  (a) LIABILITY REGIMES- (1) Except as provided under section 302 of this
  Act, the cause of action established under section 111 of this title
  may be brought in the appropriate district court of the United States,
  as provided in section 108 of this title.
  (2) No action for costs or damages arising out of an accident may be brought
  in any State court. No action for cost or damages arising out of an incident
  may be brought in any Federal court except as provided in this Act.
  (b) NO PREEMPTION OF STATE FUNDS- Nothing in this title or section 9509
  of the Internal Revenue Code of 1954 shall affect the authority of any
  State to establish or continue in effect, and to require any person to
  contribute to a fund, a purpose of which is to pay for costs or damages
  arising out of or directly resulting from an incident.
  (c) NO PREEMPTION OF CIVIL PENALTIES- Nothing in this Act or section 9509
  of the Internal Revenue Code of 1954 shall affect the authority of the
  United States or any State or political subdivision thereof to impose,
  or to determine the amount of, any fine or penalty for any violation of
  law relating to an incident.
  (d) FINANCIAL RESPONSIBILITY- Except as provided under section 302 of this
  Act, nothing in this Act shall prevent a State from imposing or enforcing
  any requirement respecting financial responsibility.
  (e) SOVEREIGN IMMUNITY WAIVER LIMITATION- The only waiver of the sovereign
  immunity of the United States Government for oilspill liability is in
  accordance with this Act.
SEC. 110. EFFECTIVE DATE.
  (a) IN GENERAL- Except as provided in subsection (b), this title shall
  take effect six months after the date of enactment. There shall be no
  recovery for natural resources damages under subsection (a) of section
  102 of this title where such damages and the discharge of oil from which
  such damages resulted have occurred wholly before the effective date. Any
  claims or causes of action in existence under current law as of the date
  of enactment shall be preserved.
  (b) PAYMENTS FROM FUND- Payments under section 103(a) may not be made
  before the effective date specified under section 208 of this Act.
SEC. 111. FEDERAL CAUSE OF ACTION BASED ON STATE OR OTHER FEDERAL LAW.
  In addition to the other causes of action established under this Act and
  except as precluded by the application of the conventions referred to in
  title III, a civil action for costs and damages may be brought in Federal
  court in accordance with the substantive law of the place where the injury
  occurred. Such law shall be incorporated into Federal law as the Federal
  rule of decision. The Act of March 3, 1851 (ch. 43, 95 Stat. 635 et seq.),
  as amended, shall not apply to any such action.
TITLE II--CONFORMING AMENDMENTS
SEC. 201. TRANS-ALASKA PIPELINE FUND.
  (a) Section 204(b) of the Trans-Alaska Pipeline Authorization Act is
  amended--
  (1) in the first sentence, by inserting after `any area' the following:
  `in the State of Alaska';
  (2) in the first sentence, by inserting after `any activities' the following:
  `related to the trans-Alaska oil pipeline'; and
  (3) by inserting at the end of the subsection the following new sentence:
  `This subsection shall not apply to removal costs covered by the Oil
  Pollution Liability and Compensation Act of 1989.'.
  (b) Subsection (c) of section 204 of the Trans-Alaska Pipeline Authorization
  Act is repealed. The repeal made by the preceding sentence shall not
  affect the applicability of that subsection to claims arising before the
  date of the enactment of this Act. The repeal of paragraphs (4), (6), and
  (8) of that subsection shall only become effective upon the payment by
  the Board of Trustees of the Trans-Alaska Pipeline Liability Fund of all
  valid claims presented to such Fund.
  (c) Officers and trustees, both present and former, of the Trans-Alaska
  Pipeline Liability Fund shall not be subject to any liability incurred by
  that Fund or by the present and past officers and trustees of that Fund,
  other than liability for gross negligence or willful misconduct.
SEC. 202. INTERVENTION ON THE HIGH SEAS ACT.
  Section 17 of the Intervention on the High Seas Act is amended to read
  as follows:
  `SEC. 17. The Oilspill Liability Trust Fund shall be available to the
  Secretary for actions taken under sections 5 and 7 of this Act.'.
SEC. 203. FEDERAL WATER POLLUTION CONTROL ACT.
  Section 311 of the Federal Water Pollution Control Act is amended as follows:
  (1) Subparagraph (H) of paragraph (2) of subsection (c) is amended by
  striking out `from the Fund established under subsection (k) of this
  section for the reasonable costs incurred in such removal' and inserting
  in lieu thereof the following: `in the case of any discharges of oil from
  a vessel or facility, for the reasonable costs incurred in such removal
  from the Oilspill Liability Trust Fund'.
  (2) Subsection (d) is amended by striking out the last sentence.
  (3) (A) Subsections (f), (g), and (i) of section 311 of the Federal Water
  Pollution Control Act shall not apply with respect to any incident for
  which liability is established under section 102 of this Act.
  (B) Paragraphs (2) and (3) of subsection (f) are amended by striking out
  `under subsection (c) for the removal of such oil or substance by the
  United States Government' each place it appears and inserting in lieu
  thereof `under subsection (c) for the removal of such oil or substance
  by the United States Government and for payments made pursuant to section
  103(a)(1) of the Oil Pollution Liability and Compensation Act of 1989'.
  (4) Subsection (i) is amended by striking out `(1)' after `(i)' and striking
  out paragraphs (2) and (3).
  (5) Subsection (k) is repealed. Any amounts remaining in the revolving
  fund established under that subsection shall be deposited in the general
  fund of the Treasury. The Oilspill Liability Trust Fund shall assume all
  liability incurred by the revolving fund established under section 311(k)
  of the Federal Water Pollution Control Act.
  (6) Subsection (1) is amended by striking out the second sentence.
  (7) Subsection (p) is repealed.
  (8) Section 311 is amended by adding at the end thereof the following
  new subsection:
  `(s) The Oilspill Liability Trust Fund shall be available to carry our
  subsections (c), (d), (i), and (l). Any amounts received by the United States
  under this section shall be deposited in the Oilspill Liability Trust Fund.'.
SEC. 204. DEEPWATER PORT ACT.
  The Deepwater Port Act of 1974 is amended as follows:
  (1) In section 4(c)(1) strike `section 18(1) of this Act;' and insert in
  lieu thereof `section 107 of the Oil Pollution Liability and Compensation
  Act of 1989,';
  (2) Subsections (b), (d), (e), (f), (g), (h), (i), (j), (l), (n), and
  paragraphs (1) and (2) of subsection (m) of section 18 are deleted.
  (3) Paragraph (3) of subsection (c) of section 18 is amended by striking
  `Deepwater Port Liability Fund established pursuant to subsection (f) of
  this section', and inserting in lieu thereof `Oilspill Liability Trust Fund'.
  (4) Subsections (c), (k), and (m) of section 18 are redesignated as
  subsections (b), (c), and (d) respectively, and paragraphs (3) and (4)
  of subsection (m) are redesignated as paragraphs (1) and (2), respectively.
  (5) Paragraph (1) of subsection (a) of section 19 is amended by striking
  the period at the end of the second sentence and inserting in lieu thereof
  `except that discharges from a deepwater port or from a vessel within a
  deepwater port safety zone which are subject to the civil penalty provisions
  of section 18(a)(2) of the Deepwater Port Act of 1974 shall not be subject
  to the penalty provisions of any other Federal law.'.
  (6) Any amounts remaining in the Deepwater Port Liability Fund, established
  under section 18(f) of the Deepwater Port Act of 1974, shall be deposited
  in the Fund established under this Act. The Oilspill Liability Trust Fund
  shall assume all liability incurred by the Deepwater Port Liability Fund.
SEC. 205. OUTER CONTINENTAL SHELF LANDS ACT AMENDMENTS.
  Title III of the Outer Continental Shelf Lands Act Amendment of 1978
  is hereby repealed. Any amounts remaining in the Offshore Oil Pollution
  Compensation Fund established under section 302 of that title shall be
  deposited in the Oilspill Liability Trust Fund. The Oilspill Liability
  Trust Fund shall assume all liability incurred by the Offshore Oil Pollution
  Compensation Fund.
SEC. 206. ENFORCEMENT OF FEDERAL WATER POLLUTION CONTROL ACT.
  (a) Section 308 of the Federal Water Pollution Control Act is amended
  as follows:
  (1) Subsection (a) is amended by--
  (A) adding a new clause (4) providing--
  `(4) obtaining information regarding the identification, nature and quantity
  of materials on a vessel or at a facility,',
  (B) adding a new clause (5) providing--
  `(5) obtaining information regarding the source or nature or extent of a
  discharge or threatened discharge of oil or other pollutants from a vessel
  or a facility,',
  (C) adding a new clause (6) providing--
  `(6) obtaining information relating to the ability of a person to pay for
  or to perform cleanup or other remedial action,' and,
  (D) renumbering existing clause (4) as clause (7),
  (E) in clause (A), inserting `, vessel, or facility' after the words
  `point source', and deleting `Administrator' and inserting in lieu thereof
  `the President',
  (F) in clause (B)--
  (i) replacing subclause (i) with the following:
  `(i) shall have a right of entry to, upon, or through any premises, vessel,
  or facility in which an effluent source is located or from which there is
  a discharge or threat of discharge of oil or other pollutants into waters
  of the United States, or in which any records required to be maintained
  under clause (A) of this subsection are located,',
  (ii) in subclause (ii), striking the words `which the owner or operator
  of such source is required to sample under such clause' and insert in
  lieu thereof the words `or discharge or threatened discharges of oil or
  other pollutants,',
  (iii) adding new subclause (iii) providing `(iii) may at reasonable times
  enter any premises, vessel, or facility where oil or other pollutants are
  stored to determine the need for response action, to effectuate response
  action, or to obtain samples of oil or other pollutants.', and
  (iv) deleting the word `Administrator' each time it appears and inserting
  in lieu thereof the words `the President',
  (b) Section 309 of the Federal Water Pollution Control Act is amended
  as follows:
  (1) Paragraph (4) of subsection (c) is amended by inserting the words
  `omits material information or' after the word `knowingly';
  (2) Add the following new paragraph (8) to subsection (c):
  (A) `In sentencing defendants under this section, the provisions of the
  Alternative Fines Act, section 3571 of title 18, United States Code,
  should be used whenever possible.'.
  (3) Subsection (d) is amended by--
  (A) designating the existing text as paragraph (1) and striking the word
  `311' therein,
  (B) adding the following new paragraphs (2), (3), and (4):
  `(2) Any person who violates paragraph (3) of subsection (b) of section 311
  of this Act, or any regulation issued under that paragraph, by the discharge
  (as defined in section 311 of this Act) of more than five barrels of oil,
  shall be subject to a civil penalty not to exceed $25,000 per day for each
  violation or $1,000 per barrel of oil so discharged, whichever is greater.
  `(3) Any person who violates paragraph (3) of subsection (b) of section 311
  of this Act, or any regulation issued under that paragraph, by the discharge
  (as defined in section 311 of this Act) of any hazardous substance (as
  defined in section 311 of this Act) in such quantity as may be harmful,
  as determined pursuant to section 311 of this Act shall be subject to a
  civil penalty not to exceed $25,000 for each violation. Each discharge of
  such quantity as may be harmful, or additional fraction thereof, whether
  continuous or intermittent, shall be a separate violation.
  `(4) In determining the amount of a civil penalty under paragraphs (2)
  and (3) of this subsection, the court shall consider the seriousness of
  the violation or violations, the economic benefit (if any) resulting from
  the violation, any history of such violations, any good-faith efforts
  to comply with the applicable requirements, the economic impact of the
  penalty on the violator, and such other matters as justice may require.'.
  (4) Subsection (g) is amended by inserting before the word `318' the word
  `311,'; and inserting after the words `in a permit issued under section
  404 of this Act by a state' the phrase `or regulations issued by the
  Administrator pursuant to section 311'.
  (c) Section 311 of the Federal Water Pollution Control Act is amended
  as follows:
  (1) Subsection (b) is amended--
  (A) in paragraph (5), deleting all after the first sentence and inserting the
  following in lieu thereof: `Any such person (A) in charge of a vessel from
  which oil or a hazardous substance is discharged in violation of paragraph
  (3)(i) of this subsection, or (B) in charge of a vessel from which oil
  or a hazardous substance is discharged in violation of paragraph (3)(ii)
  of this subsection and who is otherwise subject to the jurisdiction of the
  United States at the time of the discharge, or (C) in charge of an onshore
  facility or an offshore facility, who fails to notify immediately such agency
  of such discharge shall, upon conviction, be fined in accordance with the
  applicable provisions of title 18 or imprisoned for not more than three
  years (or not more than five years in the case of a second or subsequent
  conviction), or both. Notification received pursuant to this paragraph or
  information that could not have been obtained but for the exploitation of
  such notification shall not be used against any natural person who gives
  such notification in any criminal case, except a prosecution for perjury
  or for giving a false statement.';
  (B) in subparagraph (A) of paragraph (6), striking the words `$5,000 for
  each offense' in each of the first two sentences thereof, and inserting
  in lieu thereof in both instances the words `$25,000 for each offense,
  each day such discharge continues being a separate offense,';
  (C) in subparagraph (B) of paragraph (6), by--
  (i) deleting the second sentence, and inserting in lieu thereof the
  following: `Where the United States can show that such discharge was the
  result of willful negligence or willful misconduct within the privity and
  knowledge of the owner, operator, or person in charge, such penalty shall
  be no less than $100,000.';
  (ii) inserting the following sentence at the end of that subparagraph:
  `Civil penalties shall not be assessed under both this clause and section
  309(d) for the same discharge.'; and
  (iii) deleting subparagraph (E) of paragraph (6).
  (2) Subsection (e) is replaced with the following:
  `(e) INJUNCTIVE RELIEF; ADMINISTRATIVE ORDERS; JUDICIAL REVIEW- (1)
  INJUNCTIVE RELIEF- In addition to any action taken by a State or local
  government, when the President determines that there may be an imminent and
  substantial endangerment to the public health or welfare or the environment
  of the United States, including, but not limited to, fish, shellfish,
  and wildlife and public and private property, oceans, navigable waters,
  contiguous zone, shorelines, estuaries, wetlands, and beaches because of
  a discharge or threat of a discharge of oil or a hazardous substance in
  violation of paragraph (3) of subsection (b) of this section from a vessel
  or facility, the President may require the Attorney General to secure
  such relief from any person, including but not limited to the owner or
  operator of such vessel or facility, as may be necessary to abate such
  endangerment. The district court of the United States for the district in
  which the threat occurs shall have jurisdiction to grant such relief as
  the public interest requires as may be necessary to abate the endangerment.
  `(2) ADMINISTRATIVE ORDERS- In the circumstances described in paragraph (1),
  the President may also, after notice to the affected State, take other action
  under this section, including but not limited to, issuing such orders as may
  be necessary to protect public health and welfare and the environment. Where
  the recipient of such an order fails, without sufficient cause to obey
  such order, the President may request the Attorney General to bring an
  action in the appropriate district court of the United States to enforce
  such order, to assess a civil penalty of not more than $25,000 per day of
  each violation of the order, and to assess three times the costs or damages
  incurred as a result of the failure or refusal to comply with the order.
  `(3) JUDICIAL REVIEW- A determination of the President, under paragraph
  (1) as to the nature and scope of relief sought and an order issued by the
  President under paragraph (2) shall not be subject to judicial review except
  in a proceeding under this subsection to secure relief or to enforce such
  order. Judicial review of such orders or determinations shall be limited
  to the agency administrative record. Otherwise applicable principles of
  administrative law shall govern whether supplemental materials may be
  considered by the court. The reviewing court shall uphold the order or
  determination unless the respondent can demonstrate, on the administrative
  record, that the order or determination was arbitrary and capricious or
  otherwise not in accordance with law.'.
  (3) Subsection (n) is amended by--
  (A) designating the existing text as paragraph (1), and
  (B) adding a new paragraph (2) providing:
  `(2) All decisions taken by the President under paragraph (1) of subsection
  (c) and subsection (d) of this section are operational discretionary
  decisions of the President not subject to judicial review. The adequacy of
  removal actions or actions to mitigate damage to the environment selected
  by the President shall be subject to judicial review only in a proceeding
  by the Government to recover the costs of such actions under subsection (f)
  of this section or to obtain injunctive relief or to enforce administrative
  orders under subsection (e) of this section. In an action to recover the
  costs of removal or mitigation actions, judicial review of the adequacy
  of removal actions shall be limited to the agency's administrative record
  relating to such actions. Otherwise applicable principles of administrative
  law shall govern whether any supplemental materials may be considered
  by the court. The reviewing court shall uphold the action unless the
  respondent can demonstrate, on the administrative record, that the action
  was arbitrary and capricious or otherwise not in accordance with law.'.
  (d) Section 502 of the Federal Water Pollution Control Act is amended by
  the addition of two new paragraphs (20) and (21) providing:
  `(20) The term `oil' means oil of any kind or in any form, including,
  but not limited to, petroleum, fuel oil, sludge, oil refuse, and oil mixed
  with wastes other than dredged spoil.
  `(21) the term `barrel' means forty-two United States gallons at sixty
  degrees Fahrenheit.'.
  (e) Section 509 of the Federal Water Pollution Control Act is amended in
  paragraph (1) of subsection (a) by striking the words `obtaining information
  under section 305 of this Act, or carrying out section 507(e) of this Act'
  and inserting in lieu thereof the words `carrying out this Act'.
SEC. 207. TITLE 26, UNITED STATES CODE.
  (a) Subsection (f) of section 4611 of the Internal Revenue Code of 1986
  is amended--
  (1) in paragraph (1) and subparagraph (B) of paragraph (3), by striking
  the words `January 1, 1992', whenever they appear, and inserting in lieu
  thereof the words `July 1, 1994'.
  (2) in subparagraph (A) of paragraph (3) by striking the words `December
  31, 1991' and inserting in lieu thereof the words `June 30, 1994'.
  (3) by striking paragraph (2) and inserting in lieu thereof the following:
  `(2) COMMENCEMENT DATE- For purposes of this subsection, the term
  `commencement date' means the first day of the first calendar month
  beginning more than thirty days after the passage of the Comprehensive
  Oil Pollution Liability and Compensation Act of 1989.'.
  (b) subsection (c) of section 9509 of the Internal Revenue Code of 1986
  is amended by striking the text of paragraphs (1) and (2) and inserting
  in lieu thereof the following:
  `(1) GENERAL EXPENDITURE PURPOSES- Amounts in the Oilspill Liability
  Trust Fund shall be available, as provided in appropriations Acts, only
  for purposes of making expenditures authorized under the Comprehensive
  Oil Production Liability and Compensation Act of 1989.
  `(2) Limitations on expenditures-
  `(A) $500,000,000 PER INCIDENT- The maximum amount which may be paid from
  the Oilspill Liability Trust Fund with respect to any single incident,
  in combination with payment, if any, under the International Convention
  on the Establishment of an International Fund for Compensation for Oil
  Pollution Damage, 1984, shall be $500,000,000. Notwithstanding any other
  provision of law, the President is authorized to waive the limit imposed
  by this subparagraph and to prescribe a higher limit upon a determination
  that it is necessary and in the best interests of the country.
  `(B) $30,000,000 MINIMUM BALANCE- Except in the case of removal costs as
  defined in the Comprehensive Oil Pollution Liability and Compensation Act
  of 1989, a payment may be made from such Fund only if the amount in such
  Fund after such payment will not be less than $30,000,000.'.
SEC. 208. EFFECTIVE DATE.
  Sections 201, 202, 203, 204, and 205 shall be effective on the later of
  (1) the commencement date (as that term is defined in section 4611(f)(2)
  of the Internal Revenue Code of 1986), or (2) the effective date of the
  first Appropriation Act enacted for the purposes of section 9509 (c)(1)
  of the Internal Revenue Code of 1986.
TITLE III--IMPLEMENTATION OF INTERNATIONAL CONVENTIONS
SEC. 301. DEFINITIONS.
  For the purposes of this title--
  (1) the term `Civil Liability Convention' means the International Convention
  on Civil Liability for Oil Pollution Damage, 1984;
  (2) the terms `ship', `owner', `oil', `pollution damage', and `incident'
  shall have the meanings provided in article I of the Civil Liability
  Convention;
  (3) the term `financial responsibility' has the same meaning as `financial
  security' under the Civil Liability Convention;
  (4) the term `Fund Convention' means the International Convention on the
  Establishment of an International Fund for Compensation for Oil Pollution
  Damage, 1984; and
  (5) the term `International Fund' means the International Oil Pollution
  Compensation Fund, established under article 2 of the Fund Convention.
SEC. 302. APPLICABILITY OF CONVENTIONS.
  During any period in which the Civil Liability Convention and the Fund
  Convention are in force with respect to the United States, liability and
  financial responsibility relating to pollution damage arising from an
  incident involving a ship shall be determined in accordance with the Civil
  Liability Convention and Fund Convention. During such a period, no claim
  for such pollution damage may be made in contravention of those conventions
  under any law. Furthermore, during such a period, except as provided under
  section 307, no requirement concerning financial responsibility respecting
  pollution damage may be imposed or enforced. Nothing in this title shall
  constitute a ratification of either the Civil Liability Convention or the
  Fund Convention.
SEC. 303. RECOGNITION OF INTERNATIONAL FUND.
  The International Fund is recognized under the laws of the United States
  as a legal person, and shall have the capacity to acquire and dispose
  of real and personal property, and to institute and be party to legal
  proceedings. The Director of the International Fund is recognized as the
  legal representative of the International Fund. The Director shall be deemed
  to have appointed irrevocably the Secretary of State as the International
  Fund's agent for the service of process in any legal proceedings involving
  the International Fund within the United States. The International Fund
  and its assets shall be exempt from all direct taxation and payment of
  any customs duties in the United States.
SEC. 304. ACTION IN UNITED STATES COURTS.
  (a) SERVICE OF PROCESS ON FUND- In any action brought in a court in the
  United States against the owner of a ship or its guarantor under the Civil
  Liability Convention, the plaintiff or defendant, as the case may be,
  shall serve a copy of the complaint and any subsequent pleading therein
  upon the International Fund at the same time the complaint or other pleading
  is served upon the opposing parties.
  (b) INTERVENTION- The International Fund may intervene as a party as a
  matter of right in any action brought in a court in the United States against
  the owner of a ship or its guarantor under the Civil Liability Convention.
SEC. 305. CONTRIBUTION TO INTERNATIONAL FUND.
  (a) PAYMENTS TO BE MADE FROM OILSPILL LIABILITY TRUST FUND- The amount of
  any contribution to the International Fund which is required to be made
  under article 10 of the Fund Convention by any person with respect to oil
  received in any port, terminal installation, or other installation located
  in the United States shall be paid to the International Fund from the
  Oilspill Liability Trust Fund established by section 9509 of the Internal
  Revenue Code of 1986.
  (b) INFORMATION- The Secretary may, by regulation, require persons who are
  required to make contributions with respect to oil received in any port,
  terminal, installation, or other installations in the United States under
  article 10 of the Fund Convention to provide all information relating to
  that oil as may be necessary to carry out subsection (a) of this section,
  articles 10, 12, 13, 14, and 15 of the Fund Convention, and article 29 of the
  Protocol of 1984 to Amend the International Convention on the Establishment
  of an International Fund for Compensation for Oil Pollution Damage, 1971.
SEC. 306. RECOGNITION OF FOREIGN JUDGMENTS.
  Any final judgment of a court of any country which is a party to the
  Civil Liability Convention or to the Fund Convention in an action for
  compensation under either convention shall be recognized by any court of
  the United States having jurisdiction under this Act, when that judgment
  has become enforceable in that country and is no longer subject to ordinary
  form of review, except where--
  (1) the judgment was obtained by fraud, or
  (2) the defendant was not given reasonable notice and a fair opportunity
  to present its case.
SEC. 307. FINANCIAL RESPONSIBILITY.
  (a) UNITED STATES DOCUMENTED SHIPS- The owner of each ship which is
  documented under the laws of the United States which is subject to the
  Civil Liability Convention shall establish and maintain in accordance with
  regulations promulgated by the Secretary evidence of financial responsibility
  as required in article VII of the Civil Liability Convention.
  (b) OTHER SHIPS- The owner of each ship (other than a ship to which
  subsection (a) applies or a ship which is a public vessel), which is subject
  to the Civil Liability Convention and which enters or leaves a port or
  terminal in the United States or uses an Outer Continental Shelf facility
  or an offshore facility that is or was licensed under the Deepwater Port
  Act of 1974, shall establish and maintain, in accordance with regulations
  promulgated by the Secretary, evidence of financial responsibility as
  required in article VII of the Civil Liability Convention. Any ship which
  has on board a valid certificate issued in accordance with article VII
  of the Civil Liability Convention shall be considered as having met the
  requirements of this subsection. Any ship carrying only oil as cargo, fuel,
  or residue, which has on board a valid certificate issued in accordance
  with article VII of the Civil Liability Convention shall be considered as
  having met the requirements of section 104 of this Act.
  (c) AUTHORITY OF SECRETARY TO ISSUE- The Secretary is authorized to issue
  any certificate of financial responsibility which the United States may
  issue under the Civil Liability Convention.
  (d) WITHHOLDING CLEARANCE- The Secretary of the Treasury shall withhold or
  revoke the clearance required by section 4197 of the Revised Statutes of the
  United States of any ship which does not have a certificate demonstrating
  compliance with this section.
  (e) DENYING ENTRY AND DETAINING VESSELS- The Secretary of the department
  in which the Coast Guard is operating may (1) deny entry to any facility or
  to any port or place in the United States, or (2) detain at the facility or
  port or place in the United States, any ship subject to this section which,
  upon request, does not produce the certificate demonstrating compliance
  with this section or regulations issued hereunder.
  (f) CIVIL PENALTY- Any person who, after notice and an opportunity for a
  hearing, is found to have violated this section, any regulation issued
  under this section, section 305(b), or section 308, or any denial or
  detention order issued under subsection (e) of this section shall be liable
  to the United States for a civil penalty, not to exceed $25,000 per day of
  violation. The amount of the civil penalty shall be assessed by the Secretary
  in accordance with the procedures set forth in section 107 of this Act.
  (g) WAIVER OF SOVEREIGN IMMUNITY- The United States waives all defenses
  based on its status as a sovereign State with respect to any controversy
  arising under the Civil Liability Convention or the Fund Convention relating
  to any ship owned by the United States and used for commercial purposes.
SEC. 308. REGULATIONS.
  The Secretary may prescribe the necessary regulations to carry out this
  Act and all obligations of the United States under the Civil Liability
  Convention and the Fund Convention.
Comprehensive Oil Pollution Liability and Compensation Act of 1989

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