[Congressional Record Volume 151, Number 76 (Thursday, June 9, 2005)]
[Senate]
[Pages S6332-S6333]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. STEVENS (for himself, Mr. Inouye, and Ms. Cantwell):
  S. 1222. A bill to amend the Internal Revenue Code of 1986 to 
reinstate the Oil Spill Liability Trust Fund tax and to maintain a 
balance of $3 billion in the Oil Spill Liability Trust Fund; to the 
Committee on Finance.
  Mr. STEVENS. Mr. President, I introduce legislation today to maintain 
the solvency of the Oil Spill Liability Trust Fund established pursuant 
to the Oil Pollution Act of 1990. Shortly after midnight on March 24, 
1989 the Exxon Valdez went aground on Bligh reef and caused an oil 
spill in Prince William Sound that is to this day still being 
monitored, studied, and restored. I wrote the Oil Pollution Act of 1990 
in the aftermath of this disaster to provide the needed regulatory 
safeguards to reduce the potential for a similar spill to happen again 
and mitigate the environmental impacts in such an instance. The Oil 
Spill Liability Trust Fund is the cornerstone of the Oil Pollution Act 
ensuring funds for expeditious oil removal and providing for 
uncompensated damages to the environment. It is the ``polluter pays'' 
policy under the Act that requires the responsible party to pay back 
into the Fund all costs and damages related to a spill.
  Unfortunately, the Oil Spill Liability Trust Fund is rapidly running 
out of money. At a recent Commerce Committee hearing the Commandant of 
the Coast Guard testified that the Oil Spill Liability Trust Fund would 
likely be depleted by 2009. And in its report on the ``Implementation 
of the Oil Pollution Act of 1990'', released May 12, 2005, the Coast 
Guard announced at the end of fiscal year 2004 there was $842 million 
remaining in the Fund. This is compared to previous years when the un-
obligated balance was well over $1 billion, as was required under the 
Act through a 5 cents per barrel of oil tax collected from the oil 
industry on petroleum produced in or imported to the United States. The 
tax was suspended on July 1, 1993 when the un-obligated balance in the 
Fund exceeded $1 billion. Thereafter, the tax was reinstated on July 1, 
1994 when the balance declined below $1 billion. However, the tax 
expired on December 31, 1994 pursuant to the sunset provision under the 
Act.

[[Page S6333]]

  Since this time, the Oil Spill Liability Trust Fund has been unable 
to maintain a funding level above $1 billion from its various revenue 
sources prescribed under the Act, which consist of transfers from other 
existing pollution funds, interest on the Fund principal from U.S. 
Treasury investments, cost recoveries from responsible parties, and 
penalties. The only viable option to maintain the Fund's solvency is 
the reinstatement of the 5 cents per barrel of oil tax. The bill I 
introduce today will require the 5 cents tax go into effect after the 
last day of the first calendar quarter ending more than 30 days after 
the date of enactment. In addition, the bill provides that the Oil 
Spill Liabillty Trust Fund be funded at $3 billion, and if the fund 
drops below $2 billion the 5 cents per barrel tax will automatically be 
reinstated until the fund exceeds $3 billion.
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