Bills
| 3.23.22

Do Oil Companies Responsible for Spills That Damage U.S. Waters Need to be Held Liable? (H.R. 468)

Do you support or oppose this bill?

What is H.R. 468?

(Updated February 26, 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. 468

A CBO cost estimate is unavailable.

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:

“With the increasing probability of foreign nations drilling near our shores, American taxpayers across the country are at risk of footing the bill to bail out the mistakes of foreign oil companies. This bill ensures that won't happen and guarantees our coastal communities will have the resources they need for clean up and recovery if they are affected by a foreign spill.”

Lead cosponsor Rep. Darren Soto (D-FL) added:

"In Florida and around America, we must protect our beautiful beaches and coastal areas both now and in the future. This bill would hold foreign oil drilling companies fully responsible for spills near our shores."

This legislation has the support of 46 cosponsors in the House, including 28 Democrats and 18 Republicans. An identical version of this legislation passed the House during the last Congress on a voice vote, but the bill was never considered in the Senate.


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:

Summary by Eric Revell
(Photo Credit: greg0070 / iStock)