Following the passage of separate bills through the House of Representatives and the Senate, the Joint House-Senate Conference Committee is in the process of drafting its Conference Report on the Coastguard and Maritime Transportation Act of 2006. This is a compromise between the Senate and House bills and is likely to be adopted by both Houses.
Its principal effect will be to change the limits of OPA 90. Although OPA included a provision that allowed the limits to be adjusted to reflect inflation, no changes have been made and the limits have therefore remained as per the original legislation.
The Report proposes the following new limits and which now differentiate between double- and single-hulled tankers:
- For single hull tankers (which includes vessels fitted with double sides or bottoms only), the greater of US$3,000 per GT or (a) US$22m for vessels over 3,000 GT; (b) US$6m for vessels under 3,000 GT.
- For double hull tankers, the greater of US$1,900 per GT or (a) US$16m for vessels over 3,000 GT; (b) US$4m for vessels under 3,000 GT.
- For all other vessels, the greater of US$950 per GT or US$800,000.
The Act again contains a provision to allow adjustment of the limits at least every three years, but this is to be supported by an annual report to Congress by the Coast Guard detailing claims made against the Oil Spill Liability Trust Fund. The intention is to gauge the rate of depletion of the Fund by claims in excess of limitation and what further changes to the limits might consequently be required to protect the Fund accordingly.
It should however be noted that the $0.5c per barrel tax on oil imports has recently been reinstated to replenish the Fund. The tax will apply until the Fund reaches US$2.7 billion and as required thereafter to maintain a Fund of at least US$2 billion until 2014.
The other point of note from the Committee Report arises as a direct result of the “ATHOS I” spill in the Delaware River. Any person having knowledge of the release of an object that creates an obstruction to navigation is required to immediately notify the Coast Guard. An “Advisory Committee” of local stakeholders from the Delaware River and Bay area will be also be formed, with a remit to recommend measures to prevent and improve the response to future oil spills.
Congress is scheduled to vote on the legislation in the current term following the Easter recess and it is thought very likely to be passed. The managers will keep Member’s advised of the progress of the Act.