[Congressional Record Volume 156, Number 100 (Wednesday, June 30, 2010)]
[Extensions of Remarks]
[Pages E1244-E1246]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 H.R. 5629, THE OIL SPILL ACCOUNTABILITY AND ENVIRONMENTAL PROTECTION 
                              ACT OF 2010

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                         Tuesday, June 29, 2010

  Mr. OBERSTAR. Madam Speaker, I rise today to introduce H.R. 5629, the 
``Oil Spill Accountability and Environmental Protection Act of 2010'', 
legislation to respond to the ongoing Deepwater Horizon oil spill 
disaster and to address several shortcomings in the law to ensure that 
a similar tragedy cannot happen again.
  To understand the intent of this legislation, it is important to 
understand the historical context in which H.R. 5627, the ``Oil Spill 
Accountability and Environmental Protection Act'', is being introduced.
  On April 20, 2010, a blowout from the mobile offshore drilling unit 
(MODU), the Deepwater Horizon, led to an explosion in the Gulf of 
Mexico that left 11 crew members missing and presumed dead. The 
Deepwater Horizon was owned by Transocean Ltd., and leased, at the time 
of the explosion, to BP p.l.c. (BP), which owns a majority stake in the 
Mississippi Canyon Block 252 (MC 252) site and had contracted the rig 
to drill a prospect well.
  Following the explosion, the Deepwater Horizon sank on April 22. 
Since the explosion, oil has been spilling from the well into the Gulf 
of Mexico. In response to the Deepwater Horizon disaster, BP has made 
numerous attempts to stop or contain the flow of oil into the Gulf. 
U.S. Government and independent scientists estimate that the most 
likely flow rate of oil today is between 35,000 and 60,000 barrels per 
day.
  In light of the April 20 explosion and the ongoing release of oil 
into the Gulf of Mexico, the Committee on Transportation and 
Infrastructure has held three hearings investigating the potential 
causes of this disaster, and exploring potential changes to the laws 
and agencies under the Committee's jurisdiction to ensure that a 
similar event cannot happen in the future.
  While the causes of the explosion aboard the Deepwater Horizon, and 
its eventual sinking, remain under investigation, the hearings before 
the Committee on Transportation and Infrastructure have uncovered 
several shortcomings in current law that may have allowed the causes of 
this disaster to be set in motion.
  For example, through the Committee hearings, our Members received 
testimony on how the MODU, Deepwater Horizon, was registered in the 
Marshall Islands and, therefore, was not subjected to as rigorous of a 
vessel safety inspection by the Coast Guard as a similar U.S.-flag 
vessel.
  The Committee also learned that, because of the unique nature of 
offshore drilling, Federal oversight of the Deepwater Horizon drilling 
operation was divided between the Department of the Interior's Minerals 
Management Service and the Coast Guard, with no clear final say of 
Federal authority over the operations onboard the drilling rig.

  The Committee also learned that apparent shortcuts were taken in the 
development, approval, and implementation of oil spill response plans 
for the Deepwater Horizon drilling operation, and, in hindsight, these 
response plans were wholly inadequate to address a worst-case scenario 
involving a blowout from the well head.
  The Deepwater Horizon disaster has also demonstrated that the current 
limits of liability, including the levels of financial responsibility 
for responsible parties, are insufficient to address a potential worst-
case scenario on the release of oil for offshore facilities, and have 
called into question the current limits of liability for other vessels 
as well. With the expected

[[Page E1245]]

costs of the Deepwater Horizon disaster expected to be in the tens of 
billions, and the agreement by BP to set aside $20 billion in escrow to 
cover potential costs related to the spill, it is clear that the $75 
million liability cap for offshore facilities needs to be significantly 
increased or removed. As noted in testimony before the Committee on 
Transportation and Infrastructure, it is plausible that any limitation 
on liability, no matter how large, actually encourages risky behavior 
by externalizing the true cost of an oil spill response or damages over 
and above the cap. In addition, the Committee received testimony from 
the U.S. Coast Guard that suggests that the current limits of liability 
for certain classes of vessels do not adequately reflect the potential 
risks or impacts of a release of oil.
  Finally, the Committee investigated the unprecedented use of more 
than 1.5 million gallons of chemical dispersants in relation to the 
Deepwater Horizon disaster, and has called into question the potential 
short- and long-term impacts that increased use of these dispersants 
may have on the Gulf of Mexico and the natural resources that utilize 
this area.
  Today, my Committee colleagues and I introduce H.R. 5629, the ``Oil 
Spill Accountability and Environmental Protection Act of 2010'', to 
address these and other shortcomings that may have allowed the 
Deepwater Horizon disaster to occur, and to help, ensure that similar 
events cannot happen in the future.
  In many ways, the events leading up to the introduction of this 
legislation are similar to those that compelled Congress to enact the 
original Oil Pollution Act of 1990. Up until this year, the events 
surrounding the release of approximately 750,000 barrels of oil from 
the Exxon Valdez in the Prince William Sound, Alaska, defined our 
understanding of the likely impacts from a domestic oil spill.
  Yet, the events of the past three months have forced us to realize 
that the protections included in the original Oil Pollution Act of 1990 
are inadequate to address the current state of oil development 
technologies.
  What has become evident is the potential adverse impacts of a 
``worst-case scenario'' from modern exploration sites, such as that 
being explored by the Deepwater Horizon, are very different from those 
created by the release of oil from a tanker. This disaster has 
compelled us to reexamine the framework for Federal oversight and 
regulation of potentially-limitless sources of oil, deep beneath the 
surface of the ocean, and the difficulty in controlling and remediating 
potentially massive releases of oil beyond the reach of direct human 
control.
  This disaster also requires that we reassess the potential scope of 
impacted lives and livelihoods and the natural resources related to a 
massive oil release, and the capability of Federal, state, local, and 
private resources to prevent or address such a release.
  In addition, this disaster requires that we reexamine the wisdom of 
oil exploration policies that push the envelope on drilling 
technologies without any assurance that these underwater resources can 
be shut down or adequately controlled and cleaned up if something goes 
wrong.
  Finally, this disaster has forced us to reexamine the safety 
standards for offshore oil exploration and production activities to 
minimize the potential for future losses of life.
  In short, this legislation amends or repeals several laws within the 
jurisdiction of the Committee on Transportation and Infrastructure to 
address the following areas: (1) Liability and Financial 
Responsibility; (2) Improvements in Safety; (3) Increased Oversight of 
Oil Spill Responses; (4) Improvements in Environmental Protection; and 
(5) Funding for Agency Response Activities.
  A summary of the bill follows:

 Committee on Transportation and Infrastructure, H.R. 5629, the ``Oil 
 Spill Accountability and Environmental Protection Act of 2010,'' June 
                                29, 2010


                 LIABILITY AND FINANCIAL RESPONSIBILITY

       Repeal of and Adjustments to Limitations on Liability: H.R. 
     5629 removes the existing statutory limitation on liability 
     for offshore facilities (such as the Deepwater Horizon rig) 
     to apply to all spills on or after April 19, 2010, to ensure 
     that the responsible party or parties will be responsible for 
     100 percent of oil pollution cleanup costs and damages to 
     third parties. Directs the President to review the existing 
     limitations on liability for vessels and onshore facilities, 
     and authorizes the President to revise the liability 
     limitations upward to an amount commensurate with the risk of 
     discharge or any increase in the Consumer Price Index, 
     whichever is greater.
       Evidence of Financial Responsibility for Offshore 
     Facilities: H.R. 5629 increases the minimum level of 
     financial responsibility for an offshore facility (such as 
     the Deepwater Horizon rig) to $1.5 billion. Directs the 
     President to review the minimum level of financial 
     responsibility for an offshore facility every three years, 
     and to revise the level upward to reflect the potential risk 
     of a release to human health and the environment. Authorizes 
     the President to require, on a case-by-case basis, additional 
     levels of financial responsibility based on risk. Requires 
     existing offshore leaseholders to demonstrate the new levels 
     of financial responsibility within six months of the date of 
     enactment of this Act.
       Damages to Human Health: Under current law, impacts to 
     human health are not recognized as a valid claim under the 
     Oil Pollution Act. H.R. 5629 authorizes individuals to seek 
     compensation from responsible parties for damages to human 
     health resulting from a release of oil.
       Modernize Federal Maritime Laws: H.R. 5629 amends the Death 
     on the High Seas Act (enacted in 1920) and the Jones Act 
     (enacted in 1920) to authorize the recovery of non-pecuniary 
     damages currently allowed under general maritime law. Repeals 
     the Limitation of Liability Act of 1851, which limits the 
     liability of a ship owner to the value of the vessel and 
     freight.


                    Improvements in Maritime Safety

       Americanization of the U.S. Exclusive Economic Zone: H.R. 
     5629 requires all vessels (including Mobile Offshore Drilling 
     Units (MODUs) such as the Deepwater Horizon) engaged in oil 
     drilling activities in the U.S. Exclusive Economic Zone (200-
     mile zone) to be U.S.-flag vessels owned by U.S. citizens. 
     Americanization ensures that the vessels are subject to U.S. 
     safety regulations and that all of these vessels employ U.S. 
     citizens (who, thus, pay U.S. taxes).
       Safety Management Plans and Safety Standards for Mobile 
     Offshore Drilling Units: H.R. 5629 requires that all MODUs 
     develop and implement a safety management plan to address all 
     activities on the vessel that may threaten the safety of the 
     vessel or its crew. Requires the U.S. Coast Guard to develop 
     standards to address a worst-case event involving a discharge 
     of oil and gas.
       Approval of Oil Spill Response Plans: H.R. 5629 requires 
     the Coast Guard to concur in the oil spill response plan for 
     an offshore facility (the well). Clarifies the respective 
     authorities of the Environmental Protection Agency (EPA) and 
     the U.S. Department of Transportation (DOT) with respect to 
     onshore facilities.
       Coast Guard Maritime Safety Workforce: H.R. 5629 requires 
     the Coast Guard to increase the number of qualified marine 
     inspectors, marine casualty investigators, and marine safety 
     engineers.
       Licensing Requirements for MODU Captains: H.R. 5629 
     requires that a MODU (such as the Deepwater Horizon) is, at 
     all times, under the command of a licensed and proficient 
     master who is responsible for the safety of both the 
     navigational and industrial functions (e.g., drilling 
     operations) on the MODU.


               INCREASED OVERSIGHT OF OIL SPILL RESPONSES

       Evaluation, Approval, and Public Availability of Oil Spill 
     Response Plans: H.R. 5629 ensures that EPA, the Coast Guard, 
     and DOT have the authority to require owners and operators of 
     vessels and facilities engaged in oil-related activities to 
     submit their oil response plans for approval, and make the 
     plans publicly available. Clarifies that the agencies with 
     jurisdiction must review, and, where necessary, revise, 
     inspect, and enforce the provisions of a vessel or facility 
     oil spill response plan.
       Repeal of Response Plan Waivers: H.R. 5629 repeals the 
     authority for the agencies with jurisdiction to allow any 
     tank vessel or onshore or offshore facility to operate 
     without an approved oil spill response plan. The bill 
     preserves waiver authority for nontank vessels.
       Oversight of Oil Spill Claims; Acceleration of Claims to 
     the Oil Spill Liability Trust Fund: H.R. 5629 authorizes the 
     President, in the event of a spill of national significance, 
     to require a responsible party (or guarantor) to provide the 
     United States with information on claims for damages made 
     against the responsible party or the Trust Fund. Amends the 
     Oil Pollution Act of 1990 to allow claimants to pursue 
     compensation from the Oil Spill Liability Trust Fund within 
     45 days of a denial of a claim by the responsible party.


                IMPROVEMENTS IN ENVIRONMENTAL PROTECTION

       Use of Dispersants and Other Chemicals: H.R. 5629 directs 
     the EPA to undertake a rulemaking to revise the list of 
     approved dispersants and other chemicals that can be used in 
     relation to an oil spill. Directs the Administrator to 
     establish minimum toxicity and efficacy criteria for 
     dispersants, provide for independent verification of 
     industry-provided data, require public disclosure of the 
     formula for listed dispersants, and provide a mechanism for 
     delisting a dispersant based on potential impacts to human 
     health or the environment. Requires specific approval of the 
     Federal On-Scene Coordinator, in coordination with EPA, 
     before use of a dispersant or other chemical in relation to a 
     future oil spill.
       National Oil Spill Database: H.R. 5629 requires the 
     President, acting through EPA, the Coast Guard, DOT, and 
     other Federal agencies to develop a publicly-available, 
     national database to track all discharges of oil or hazardous 
     substances into the waters of the United States, adjoining 
     shorelines, or the waters of the contiguous zone.
       Reforms of Federal Agencies, Laws, or Programs to Ensure 
     Effective Oversight, Insspection, Monitoring, and Response 
     Capabilities to an Oil Spill: H.R. 5629 directs the National 
     Commission on the BP Deepwater Horizon Spill and Offshore 
     Drilling, established by Executive Order, to evaluate the 
     current division of responsibility among the different 
     Federal agencies, and to submit recommendations to Congress 
     on changes to the current responsibilities of Federal 
     agencies, including the creation of new agencies

[[Page E1246]]

     to regulate offshore drilling operations. Requires the 
     Commission to develop recommendations to ensure that offshore 
     drilling is overseen by career professionals who will give 
     safety the highest priority, and not be improperly influenced 
     by political appointees or the regulated industry.


                 FUNDING FOR AGENCY RESPONSE ACTIVITIES

       Authorized Level of Coast Guard Personnel: H.R. 5629 
     authorizes an end-of-year strength for active-duty Coast 
     Guard personnel of 47,300 for fiscal year 2011, of which not 
     less than 300 personnel shall be assigned to implement the 
     activities required of the Coast Guard by this Act.
       Authorization of Appropriations from the Oil Spill 
     Liability Trust Fund: H.R. 5629 specifically authorizes 
     appropriations from the Oil Spill Liability Trust Fund for 
     the Coast Guard, EPA, and DOT to carry out this Act.

                          ____________________