[Congressional Record Volume 142, Number 140 (Wednesday, October 2, 1996)]
[Extensions of Remarks]
[Pages E1907-E1908]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 COAST GUARD AUTHORIZATION ACT OF 1996

                                 ______
                                 

                            HON. BUD SHUSTER

                            of pennsylvania

                    in the house of representatives

                       Wednesday, October 2, 1996

  Mr. SHUSTER. Mr. Speaker, as chairman of the conference committee for 
S. 1004, the Coast Guard Authorization Act of 1996, I submit the 
following explanation of several sections included in the conference 
report on that bill.


   section 901. reduction of oil spills from non-self-propelled tank 
                                vessels

       The Conference substitute requires the Secretary of 
     Transportation, in consultation with the Towing Safety 
     Advisory Committee, to prescribe regulations requiring a 
     single-hull non-self-propelled vessel that operates in the 
     open ocean or coastal waters, or the vessel towing it, to 
     have at least one of the following: (1) a crew member and an 
     operable anchor on board the tank vessel that together are 
     capable of arresting the tank vessel without additional 
     assistance under reasonably foreseeable sea conditions; (2) 
     an emergency system on the tank vessel or towing vessel that 
     without additional assistance under reasonable foreseeable 
     sea conditions will allow the tank vessel to be retrieved by 
     the towing vessel if the tow line ruptures; or (3) any other 
     measure or combination of measures that the Secretary 
     determines will provide protection against grounding of the 
     tank vessel comparable to that provided by the measures 
     described in paragraph (1) or (2).


         section 902. requirement for fire suppression devices

       The Conference substitute allows the Secretary of 
     Transportation to require the installation, maintenance, and 
     use of a fire suppression system or other measures to provide 
     adequate assurance that a fire on board towing vessels can be 
     suppressed under reasonably foreseeable circumstances. In the 
     case of vessels towing non-self-propelled tank vessels, the 
     Secretary is directed to require the use of fire suppression 
     or other measures by not later than October 1, 1997.


   section 903. studies addressing various sources of oil spill risk

       The Conference substitute requires the Secretary of 
     Transportation to complete studies which include studies of 
     group-5 fuel oil automatic fueling shutoff equipment, and 
     lightering.


 section 1125. offshore facility financial responsibility requirements

       The amendments to section 1016(c)(1) of the Oil Pollution 
     Act of 1990 (OPA 90) contained

[[Page E1908]]

     in section 1125 of the Conference substitute will allow the 
     Minerals Management Service to implement the financial 
     responsibility requirements of OPA 90 for offshore facilities 
     in a reasonable manner. The Minerals Management Service has 
     been unable to implement the offshore facility 
     responsibility requirements under OPA 90 because of the 
     potentially devastating impact on many types of small 
     businesses resulting from the original OPA 90 language. 
     This is because the original language of section 1016 of 
     OPA 90 could be interpreted to (1) include facilities such 
     as onshore refineries, marinas, and even fuel storage 
     facilities located in wetlands as ``offshore facilities''; 
     (2) include all navigable waters of the United States; (3) 
     require $150 million in financial responsibility from each 
     offshore facility despite its oil spill risk; and (4) 
     require financial responsibility certification for 
     facilities that handle even minimum volumes of oil.
       The Conference substitute clarifies the original intent of 
     the Congress by ensuring that the financial obligations 
     imposed by section 1016(c)(1) apply solely to ``traditional'' 
     offshore oil facilities located seaward of the line of 
     ordinary low water. The provision makes clear that ``offshore 
     facilities'' do not include traditional land-based 
     facilities. Marinas, refineries, and terminals are ``onshore 
     facilities'' even though docks, piping, wharfs, piers, and 
     other similar appurtenances, connected directly or indirectly 
     to those facilities, may sit on submerged land seaward of the 
     line of ordinary low water. All of the components of those 
     facilities are part of the onshore facility.
       The Conference substitute maintains a reasonable financial 
     responsibility requirement of $35 million and allows the 
     President to raise the requirement to a level not exceeding 
     $150 million if he determines that the risks justify the 
     result. The substitute allows facilities which have a small 
     oil spill discharge potential (1000 barrels or less) exempted 
     from the financial responsibility requirement altogether.
       The substitute also allows ``direct action'' against a 
     guarantor for an offshore facility only in the following 
     cases: (1) the claimant is the Federal government; (2) a 
     responsibility party for an offshore facility has denied or 
     failed to pay a claim because of insolvency; or (3) a 
     responsible party for an offshore facility has filed a 
     petition for bankruptcy under title 11, United States Code. 
     The substitute clarifies that a guarantor's total liability 
     under OPA '90, including under direct action, is limited to 
     the amount of financial responsibility provided.


            section 1141. dredging of rhode island waterways

       The Conference substitute requires the Army Corps of 
     Engineers to issue recommendations regarding dredging in 
     Rhode Island state waters.


                     section 1142. interim payments

       The experience in Rhode Island in connection with the NORTH 
     CAPE spill shows that partial or interim claim settlement 
     programs are vital when the income of lobstermen or fishermen 
     is interrupted because of an oil spill. These amendments make 
     it clear that interim or partial claim payments are available 
     for loss of profits or earning capacity under Oil Pollution 
     Act. The acceptance of such interim or partial payments will 
     not prevent a claimant from recovering other damages to which 
     he is entitled, but no double recovery by any claimant will 
     be permitted. This section clarifies the availability of 
     partial or interim payments but does not, in any way, 
     preclude a claimant from entering into a final settlement. 
     The limitations imposed by section 1017(f) of the Oil 
     Pollution Act shall apply to partial or interim claims.


                  section 1143. oil spill information

       The Conference substitute amends the Federal Water 
     Pollution Control Act to create a repository for information 
     pertaining to oil spills.


         section 1144. compliance with oil spill response plans

       The Conference substitute amends the Federal Water 
     Pollution Control Act to provide greater discretion to the 
     President or the Federal on-scene coordinator regarding oil 
     spill response plans.