[Congressional Record Volume 150, Number 139 (Wednesday, December 8, 2004)]
[Senate]
[Pages S12068-S12070]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LAUTENBERG (for himself and Mr. Corzine):

[[Page S12069]]

  S. 3035. A bill to amend the Oil Pollution Act of 1990 to prevent oil 
spills and increase liability limits, and for other purposes; to the 
Committee on Environment and Public Works.
  Mr. LAUTENBERG. Mr. President, I rise to introduce the Oil Spill 
Prevention and Liability Act of 2004. This bill encourages the oil 
industry to speed up the shift to double-hull tankers by phasing out 
liability caps on oil spills involving single-hull tankers. My bill 
also updates the liability caps--which haven't changed since 1990--for 
all other oil-carrying vessels and facilities.
  I am introducing this bill because on November 26, the Athos I, a 
foreign-owned, single-hull tanker, leaked up to 473,000 gallons of 
Venezuelan crude oil into the Delaware River near Philadelphia. It is 
the Delaware River's worst oil spill in a decade. The effects of this 
spill are clearly devastating.
  Eighty-five miles of shoreline have been contaminated. Scores of 
shorebirds have been killed and hunting and fishing areas have been 
closed. The spill is approaching inlets used as sources for drinking 
water. Two nuclear reactors have been shut down because contaminated 
water could damage cooling systems.
  The effect on our economy is immense. The Philadelphia/Delaware River 
ports have more calls by general cargo vessels than any other port 
system in the country. Now, restrictions have been placed on all ships 
entering the port, and ships leaving the port have to be decontaminated 
first.
  The clean-up effort, headed by the U.S. Coast Guard, is remarkable.
  I want to thank the men and women who are involved. More than 1,600 
people and 145 vessels are working on this response effort. But we are 
told that it will take months to complete.
  And because of the type of oil spilled by the ship--raw crude oil--
the ecological impacts of this spill could last for decades.
  What is so infuriating is that this spill didn't have to happen. So 
why did it happen? Because the oil industry is dragging its feet when 
it comes to shifting from single-hull vessels to double-hull vessels--
that is why.
  They are supposed to be doing that under the Oil Pollution Act of 
1990, a bill I co-sponsored. I also served on the conference committee 
on the bill.
  The 1990 act was our response to the infamous Exxon Valdez oil spill 
in 1989, which devastated the pristine Prince William Sound of Alaska 
with more than 11 million gallons of oil.
  We all remember the enormous cost of that spill to the community, the 
environment, and the economy--costs which continue to this day.
  The 1990 act improved our ability to prevent and respond to oil 
spills.
  Since that act was passed, we have not built any single-hull tankers 
in the United States. That is the good news. But the oil industry is 
still using old, single-hull vessels, and it is evident that the 
industry will continue to use them until the last minute, putting 
private profit over the public good. That is the bad news.
  As of last year, 14 years after the most catastrophic oil spill in 
our Nation's history, there were still more single-hull tankers 
operating out of Valdez, AK, than double-hull tankers.
  Apparently, the lessons of the Exxon Valdez have been lost on the oil 
industry. And now we are paying the price on the Delaware River.
  When we passed the 1990 act, we gave the oil industry plenty of time 
to phase out single-hull tankers in an orderly fashion. But the 
industry hasn't acted in good faith. The fact is, the only way we are 
going to get the industry to stop relying on single-hull vessels is to 
lift the liability caps on their use.
  That is why my bill phases out the liability cap for single-hull 
vessels by 2010, the same year the Coast Guard predicts that the 
Federal Oil Spill Trust Fund will run out of money. The Trust Fund has 
been used to clean up over 7,500 oil spills in nearly every State of 
the Nation.
  Right now, the liability for the owner of the Athos I is capped at 
$45 million.
  That may seem like a lot, but the full costs of this spill may 
continue to accrue for years to come.
  Why should we cap liability for companies that insist on using old, 
unsafe single-hull vessels when they are supposed to be upgrading their 
fleets to newer, safer double-hull vessels?
  The bill I am introducing today has several other features to help 
protect our ports and waterways from oil spills:
  It requires more frequent inspections of older single-hull tankers. 
Other countries do this; why shouldn't we? Are we getting their 
rejects?
  The bill would double liability caps set in the 1990 act for other 
oil-carrying vessels and facilities. This provision is extremely 
important since, as I mentioned, the Federal Oil Spill Trust Fund will 
run out of money by 2010.
  Also, since many ports simply can't handle an interruption of 
commerce that could be caused by a major oil spill, the bill would 
require the Coast Guard to establish procedures for determining what 
types of vessels and cargo are just too risky for certain ports to 
handle.
  I am pleased that Senator Corzine has joined me as a cosponsor of 
this bill.
  I urge my other colleagues to support this bill, too. Single-hull oil 
tankers pose a titanic risk to our oceans, coasts, rivers, lakes, and 
ports; it is time we got back on the right course when it comes to 
fighting and cleaning up oil spills.
  I ask unanimous consent that the text of the bill be printed in the 
Record following my statement.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3035

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Oil Spill Prevention and 
     Liability Act of 2004''.

     SEC. 2. DEFINITION OF RESPONSIBLE PARTY.

       Section 1001(32) of the Oil Pollution Act of 1990 (33 
     U.S.C. 2701(32)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) Vessels.--
       ``(i) In general.--In the case of a vessel other than a 
     single-hull tank vessel, any person that owns, operates, or 
     demise charters the vessel.
       ``(ii) Single-hull tank vessels.--In the case of a single-
     hull tank vessel, any person that--

       ``(I) owns, operates, or demise charters the vessel; or
       ``(II) by contract or agreement, through an agent, or 
     otherwise, arranges for the shipment in a single-hull tank 
     vessel of oil owned or possessed by the person or any other 
     person.''.

     SEC. 3. LIMITS ON LIABILITY.

       (a) Increase in Liability Limits.--Section 1004(a) of the 
     Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``for a tank vessel, the greater of--'' and 
     inserting ``for a double-hull tank vessel, after December 31, 
     2004, the greater of--'';
       (B) in subparagraph (A), by striking ``$1,200'' and 
     inserting ``$2,400''; and
       (C) in subparagraph (B)--
       (i) in clause (i), by striking ``$10,000,000'' and 
     inserting ``$20,000,000''; and
       (ii) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$4,000,000'';
       (2) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5), respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) for a single-hull tank vessel--
       ``(A) during the period beginning January 1, 2005, and 
     ending December 31, 2005, the greater of--
       ``(i) $2,400 per gross ton; or
       ``(ii)(I) in the case of a vessel of greater than 3,000 
     gross tons, $20,000,000; or
       ``(II) in the case of a vessel of 3,000 gross tons or less, 
     $4,000,000;
       ``(B) during the period beginning January 1, 2006, and 
     ending December 31, 2006, the greater of--
       ``(i) $3,600 per gross ton; or
       ``(ii)(I) in the case of a vessel of greater than 3,000 
     gross tons, $30,000,000; or
       ``(II) in the case of a vessel of 3,000 gross tons or less, 
     $6,000,000;
       ``(C) during the period beginning January 1, 2007, and 
     ending December 31, 2007, the greater of--
       ``(i) $4,800 per gross ton; or
       ``(ii)(I) in the case of a vessel of greater than 3,000 
     gross tons, $40,000,000; or
       ``(II) in the case of a vessel of 3,000 gross tons or less, 
     $8,000,000;
       ``(D) during the period beginning January 1, 2008, and 
     ending December 31, 2008, the greater of--
       ``(i) $6,000 per gross ton; or
       ``(ii)(I) in the case of a vessel of greater than 3,000 
     gross tons, $50,000,000; or
       ``(II) in the case of a vessel of 3,000 gross tons or less, 
     $10,000,000;
       ``(E) during the period beginning January 1, 2009, and 
     ending December 31, 2009, the greater of--
       ``(i) $7,200 per gross ton; or
       ``(ii)(I) in the case of a vessel of greater than 3,000 
     gross tons, $60,000,000; or

[[Page S12070]]

       ``(II) in the case of a vessel of 3,000 gross tons or less, 
     $12,000,000; and
       ``(F) after December 31, 2009, the maximum amount permitted 
     under the Constitution;'';
       (4) in paragraph (3) (as redesignated by paragraph (2))--
       (A) by striking ``$600'' and inserting ``$1,200''; and
       (B) by striking ``$500,000'' and inserting ``$1,000,000'';
       (5) in paragraph (4) (as redesignated by paragraph (2)), by 
     striking ``$75,000,000'' and inserting ``$150,000,000''; and
       (6) in paragraph (5) (as redesignated by paragraph (2)), by 
     striking ``$350,000,000'' and inserting ``$700,000,000''.
       (b) Adjustment of Liability Limits.--Section 1004(d) of the 
     Oil Pollution Act of 1990 (33 U.S.C. 2704(d)) is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Deepwater ports and associated vessels.--The 
     Secretary may establish a limit of liability of less than 
     $700,000,000, but not less than $100,000,000, for the 
     transportation of oil by vessel to deepwater ports (as 
     defined in section 3 of the Deepwater Port Act of 1974 (33 
     U.S.C. 1502).''; and
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (c) Adjustment for Inflation.--Paragraph (2) of section 
     1004(d) of the Oil Pollution Act of 1990 (33 U.S.C. 2704(d)) 
     (as redesignated by subsection (b)(2)) is amended--
       (1) by striking ``The President'' and inserting ``The 
     Secretary of the department in which the Coast Guard is 
     located, in consultation with the Administrator of the 
     Environmental Protection Agency and the Secretary of the 
     Interior,''; and
       (2) by striking ``significant''.

     SEC. 4. CARRIAGE OF LIQUID BULK DANGEROUS CARGOES.

       (a) Conditions for Entry to Ports in the United States.--
     Section 9 of the Ports and Waterways Safety Act (33 U.S.C. 
     1228) is amended by adding at the end the following:
       ``(c) Risk of Severe Harm.--Not later than January 1, 2006, 
     the Secretary of the department in which the Coast Guard is 
     located shall promulgate regulations under which the owner or 
     operator of a port on the navigable waters of the United 
     States may, after December 31, 2009, request the Secretary of 
     the department in which the Coast Guard is located to place 
     restrictions on the entry into port of the shipment of an 
     individual tank vessel, or class of tank vessels, that 
     presents a risk of severe harm to the environment, economy, 
     or public safety of the port or port region.''.
       (b) Inspection and Examination.--Section 3714(a) of title 
     46, United States Code, is amended by adding at the end the 
     following:
       ``(6) In addition to the inspections required under 
     paragraphs (1) and (2), each single-hull tank vessel that is 
     more than 15 years of age shall undergo an annual inspection 
     in accordance with the Condition Assessment Scheme of the 
     Marine Environment Protection Committee of the International 
     Maritime Organization, adopted by Resolution 94(46) on April 
     27, 2001, as determined in accordance with regulations 
     promulgated by the Secretary.''.

     SEC. 5. STUDY.

       (a) Administration.--The Commandant of the Coast Guard 
     shall offer to enter into a contract with the National 
     Academy of Sciences to conduct a study to assess the total 
     economic cost of oil spills, and the types of costs resulting 
     from oil spills, in the United States.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Commandant of the Coast Guard 
     shall submit to Congress a report describing the results of 
     the study.

     SEC. 6. EFFECTIVE DATE.

        This Act and the amendments made by this Act take effect 
     on January 1, 2005.

                          ____________________