EMERGENCY RESPONSE PLANNING BLOG

Oil Spill Liability Trust Fund and OPA 90

Twenty years ago, the Congress implemented The Oil Pollution Act of 1990 (OPA 90), which placed the primary burden of clean up costs on the responsible party.

However, the Oil Spill Liability Trust Fund (OSLTF), which currently is financed by a 8-cent-per-barrel oil tax, was created to offset clean up costs when the responsible party is incapable or unwilling to do so. Congress created the Fund in 1986, but did not pass the legislation to authorize the use of the money or the collection of revenue necessary for its maintenance until the passage of OPA 90 regulation four years later.

OPA 90 consolidated the liability and compensation requirement of certain prior federal oil pollution laws and their supporting funds.

Funds can be used for the following:

• Removal costs incurred by the Coast Guard and EPA
• State access for removal activities
• Payments to federal, state, and Indian tribe trustees to conduct natural resource damage assessments and restorations;
• Payment of claims for uncompensated removal costs and damages;
• Research and development; and
• Other specific appropriations.

Larger corporations may have sufficient resources to pay for cleanup costs resulting from large spills, however smaller companies may need to utilize the OSLTF for cleanup expenses. 

However, the best defensive measure against financing an oil spill clean up is prevention and thorough planning.

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