Do Oil Companies Responsible for Spills That Damage U.S. Waters Need to be Held Liable? (H.R. 1684)
Do you support or oppose this bill?
What is H.R. 1684?
(Updated June 30, 2019)
This bill would hold the owners and operators of oil production facilities liable for oil spills that originate outside of the U.S. exclusive economic zone but cause damage inside those boundaries. Under current law entities can only be held responsible for oil spills that occur inside of U.S. waters and are liable for cleanup costs, damages, and penalties.
Revenue obtained through the collection of penalties would go to the Oil Spill Liability Trust Fund. Currently the trust pays out up to $150 million for post-spill cleanup and up to $850 million for resulting claims and damages, leaving taxpayers and affected states to pay for damages exceeding $1 billion.
Argument in favor
Owners and operators of companies responsible for oil spills should be liable for the damages they cause in U.S. territory even if the spill originates in foreign waters. This is a commonsense fix that keeps taxpayers off the hook for recovery costs.
Argument opposed
Current law offers up to $1 billion in financial protection for states, communities, and businesses that might be negatively impacted by an oil spill that occurs in foreign territory but affects U.S. waters. That’s enough cover, so this bill isn’t necessary.
Impact
The owners and operators of oil facilities that are the source of an oil spill that damages U.S. waters; and the federal government.
Cost of H.R. 1684
The CBO estimates that enacting this bill would increase revenues from penalty collections by $7 million over the 2017-2026. This is mainly due to the CBO’s assessment that there is a low likelihood of a spill occurring outside U.S. waters that eventually causes damages that the federal government can recover.
Additional Info
In-Depth: Sponsoring Rep. Carlos Curbelo (R-FL) introduced this bill to ensure that coastal communities which might be negatively impacted by a foreign oil spill have a recourse to fund cleanup efforts:
“Our coastal communities need peace of mind that if they are impacted by a foreign oil spill, resources are available to clean up their shores and help them recover. American taxpayers should not have to foot the bill to bail out the mistakes of foreign companies.”
This legislation was passed by the House Transportation and Infrastructure Committee on a voice vote and has 46 cosponsors — including 27 Republicans and 19 Democrats.
Of Note: There are several Caribbean countries that have begun or are considering offshore oil extraction, including Trinidad and Tobago, The Bahamas, and Cuba. According to the Council on Foreign Relations, oil from a spill off the Cuban coast would reach Florida within six to ten days.
Media:
- Sponsoring Rep. Carlos Curbelo (R-FL) Press Release
- CBO Cost Estimate
- Ripon Advance
- Sunshine State News
(Photo Credit: Flickr user laghosep)
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