§ 2716. Financial responsibility

(a) Requirement

The responsible party for

[See main edition for text of (1) and (2)] shall establish and maintain, in accordance with regulations promulgated by the Secretary, evidence of financial responsibility sufficient to meet the maximum amount of liability to which the responsible party could be subjected under section 2704(a) or (d) of this title, in a case where the responsible party would be entitled to limit liability under that section. If the responsible party owns or operates more than one vessel, evidence of financial responsibility need be established only to meet the amount of the maximum liability applicable to the vessel having the greatest maximum liability.

[See main edition for text of (b)]

(c) Offshore facilities

(1) In general

(A) Evidence of financial responsibility required

Except as provided in paragraph (2), a responsible party with respect to an offshore facility that—

(1)(I) is located seaward of the line of ordinary low water along that portion of the coast that is in direct contact with the open sea and the line marking the seaward limit of inland waters; or

(II) is located in coastal inland waters, such as bays or estuaries, seaward of the line of ordinary low water along that portion of the coast that is not in direct contact with the open sea;

(ii) is used for exploring for, drilling for, producing, or transporting oil from facilities engaged in oil exploration, drilling, or production; and

(iii) has a worst-case oil spill discharge potential of more than 1,000 barrels of oil (or a lesser amount if the President determines that the risks posed by such facility justify it),

shall establish and maintain evidence of financial responsibility in the amount required under subparagraph (B) or (C), as applicable.

(B) Amount required generally

Except as provided in subparagraph (C), the amount of financial responsibility for offshore facilities that meet the criteria of subparagraph (A) is—

(i) $35,000,000 for an offshore facility located seaward of the seaward boundary of a State; or

(ii) $10,000,000 for an offshore facility located landward of the seaward boundary of a State.

(C) Greater amount

If the President determines that an amcunt of financial responsibility for a responsible party greater than the amount required by subparagraph (B) is justified based on the relative operational, environmental,

human health, and other risks posed by the quantity or quality of oil that is explored for, drilled for, produced, or transported by the responsible party, the evidence of financial responsibility required shall be for an amount determined by the President not exceeding $150,000,000.

(D) Multiple facilities

In a case in which a person is a responsible party for more than one facility subject to this subsection, evidence of financial responsibility need be established only to meet the amount applicable to the facility having the greatest financial responsibility requirement under this subsection.

(E) Definition

For the purpose of this paragraph, the seaward boundary of a State shall be determined in accordance with section 1301(b) of title 43.

[See main edition for text of (2); (e)] (f) Claims against guarantor

(1) In general

Subject to paragraph (2), a claim for which liability may be established under section 2702 of this title may be asserted directly against any guarantor providing evidence of financial responsibility for a responsible party liable under that section for removal costs and damages to which the claim pertains. In defending against such a claim, the guarantor may invoke

(A) all rights and defenses which would be available to the responsible party under this Act;

(B) any defense authorized under subsection (e) of this section; and

(C) the defense that the incident was caused by the willful misconduct of the responsible party.

The guarantor may not invoke any other defense that might be available in proceedings brought by the responsible party against the guarantor.

(2) Further requirement

A claim may be asserted pursuant to paragraph (1) directly against a guarantor providing evidence of financial responsibility under subsection (c)(1) of this section with respect to an offshore facility only if

(A) the responsible party for whom evidence of financial responsibility has been provided has denied or failed to pay a claim under this Act on the basis of being insolvent, as defined under section 101(32) of title 11, and applying generally accepted accounting principles;

(B) the responsible party for whom evidence of financial responsibility has been provided has filed a petition for bankruptcy under title 11; or

(C) the claim is asserted by the United States for removal costs and damages or for compensation paid by the Fund under this Act, including costs incurred by the Fund for processing compensation claims.

(3) Rulemaking authority

Not later than 1 year after October 19, 1996, the President shall promulgate regulations to establish a process for implementing paragraph (2) in a manner that will allow for the orderly and expeditious presentation and resolution of claims and effectuate the purposes of this Act.

(g) Limitation on guarantor's liability

Nothing in this Act shall impose liability with respect to an incident on any guarantor for damages or removal costs which exceed, in the aggregate, the amount of financial responsibility which that guarantor has provided for a responsible party pursuant to this section. The total liability of the guarantor on direct action for claims brought under this Act with respect to an incident shall be limited to that amount.

[See main edition for text of (h) and (i)]

(As amended Pub. L. 104-55, §2(d)(2), Nov. 20, 1995, 109 Stat. 547; Pub. L. 104-324, title XI, § 1125(a), Oct. 19, 1996, 110 Stat. 3981.)

AMENDMENTS

1996 Subsec. (c)(1). Pub. L. 104-324, §1125(a)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "Except as provided in paragraph (2). each responsible party with respect to an offshore facility shall establish and maintain evidence of financial responsibility of $150,000,000 to meet the amount of liability to which the responsible party could be subjected under section 2704(a) of this title in a case in which the responsible party would be entitled to limit liability under that section. In a case in which a person is the responsible party for more than one facility subject to this subsection, evidence of financial responsibility need be established only to meet the maximum liability applicable to the facility having the greatest maximum liability."

Subsec. (f). Pub. L. 104-324, §1125(a)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "Any claim for which liability may be established under section 2702 of this title may be asserted directly against any guarantor providing evidence of financial responsibility for a responsible party liable under that section for removal costs and damages to which the claim pertains. In defending against such a claim, the guarantor may invoke (1) all rights and defenses which would be available to the responsible party under this Act, (2) any defense authorized under subsection (e) of this section, and (3) the defense that the incident was caused by the willful misconduct of the responsible party. The guarantor may not invoke any other defense that might be available in proceedings brought by the responsible party against the guarantor."

Subsec. (g). Pub. L. 104-324, §1125(a)(3). reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "Nothing in this Act shall impose liability with respect to an incident on any guarantor for damages or removal costs which exceed, in the aggregate, the amount of financial responsibility required under this Act which that guarantor has provided for a responsible party."

1995 Subsec. (a). Pub. L. 104-55 substituted "the responsible party could be subjected under section 2704(a) or (d) of this title" for ", in the case of a tank vessel, the responsible party could be subject under section 2704(a)(1) or (d) of this title, or to which, in the case of any other vessel, the responsible party could be subjected under section 2704(a)(2) or (d) of this title".

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1125(b) of Pub. L. 104-324 provided that: "The amendment made by subsection (a)(2) [amending this

section] shall not apply to any final rule issued before the date of enactment of this section [Oct. 19, 1996]." §2720. Differentiation among fats, oils, and

greases

(a) In general

Except as provided in subsection (c) of this section, in issuing or enforcing any regulation or establishing any interpretation or guideline relating to the transportation, storage, discharge, release, emission, or disposal of a fat, oil, or grease under any Federal law, the head of that Federal agency shall

(1) differentiate between and establish separate classes for

(A) animal fats and oils and greases, and fish and marine mammal oils, within the meaning of paragraph (2) of section 61(a) of title 13, and oils of vegetable origin, including oils from the seeds, nuts, and kernels referred to in paragraph (1)(A) of that section; and

(B) other oils and greases, including petroleum; and

(2) apply standards to different classes of fats and oils based on considerations in subsection (b) of this section.

(b) Considerations

In differentiating between the class of fats, oils, and greases described in subsection (a)(1)(A) of this section and the class of oils and greases described in subsection (a)(1)(B) of this section, the head of the Federal agency shall consider differences in the physical, chemical, biological, and other properties, and in the environmental effects, of the classes.

(c) Exception

The requirements of this Act shall not apply to the Food and Drug Administration and the Food Safety and Inspection Service.

(Pub. L. 104–55, §2, Nov. 20, 1995, 109 Stat. 546.)

REFERENCES IN TEXT

This Act, referred to in subsec. (c), is Pub. L. 104-55, Nov. 20, 1995, 109 Stat. 546, which enacted this section and amended sections 2704 and 2716 of this title. For complete classification of this Act to the Code, see Short Title of 1995 Amendment note set out under section 2701 of this title and Tables.

CODIFICATION

Section was enacted as part of the Edible Oil Regulatory Reform Act, and not as part of title I of the Oil Pollution Act of 1990 which comprises this subchapter.

Section is comprised of section 2 of Pub. L. 104-55. Subsec. (d) of section 2 of Pub. L. 104-55 amended sections 2704 and 2716 of this title.

REGULATIONS

Pub. L. 105-277, div. A. §101(g) [title III, §343], Oct. 21, 1998, 112 Stat. 2681-439, 2681-473, provided that:

"(a) None of the funds made available by this Act or subsequent Acts may be used by the Coast Guard to issue, implement, or enforce a regulation or to establish an interpretation or guideline under the Edible Oil Regulatory Reform Act (Public Law 104-55) [see Short Title of 1995 Amendment note set out under section 2701 of this title], or the amendments made by that Act, that does not recognize and provide for, with respect to fats, oils, and greases (as described in that Act, or the amendments made by that Act) differences in

"(1) physical, chemical, biological and other relevant properties; and

"(2) environmental effects.

"(b) Not later than March 31, 1999, the Secretary of Transportation shall issue regulations amending 33 CFR 154 to comply with the requirements of Public Law 104-55."

Pub. L. 105-276, title III, Oct. 21, 1998, 112 Stat. 2499, provided that: "Not later than March 31, 1999, the Administrator of the Environmental Protection Agency shall issue regulations amending 40 C.F.R. 112 to comply with the requirements of the Edible Oil Regulatory Reform Act (Public Law 104-55) [see Short Title of 1995 Amendment note set out under section 2701 of this title]. Such regulations shall differentiate between and establish separate classes for animal fats and oils and greases, and fish and marine mammal oils (as described in that Act), and other oils and greases, and shall apply standards to such different classes of fats and oils based on differences in the physical, chemical, biological, and other properties, and in the environmental effects. of the classes. None of the funds made available by this Act or in subsequent Acts may be used by the Environmental Protection Agency to issue or to establish an interpretation or guidance relating to fats, oils, and greases (as described in Public Law 104-55) that does not comply with the requirements of the Edible Oil Regulatory Reform Act."

SENSE OF CONGRESS ON IMPLEMENTATION OF REGULATIONS REGARDING ANIMAL FATS AND VEGETABLE OILS Pub. L. 104-324, title XI, §1130, Oct. 19, 1996, 110 Stat. 3985, provided that:

"(a) SENSE OF CONGRESS.-It is the sense of Congress that, in an effort to reduce unnecessary regulatory burdens, a regulation issued or enforced and an interpretation or guideline established pursuant to Public Law 104-55 [see Short Title of 1995 Amendment note set out under section 2701 of this title] should in any manner possible recognize and provide for the differences in the physical, chemical, biological, and other properties. and in the environmental effects, of the classes of fats, oils, and greases described under that law.

"(b) REPORT.-Within 60 days after the date of enactment of this section [Oct. 19, 1996] and on January 1 of each year thereafter, the Secretary of Transportation shall submit a report to Congress on the extent to which the implementation by the United States Coast Guard of regulations issued or enforced, or interpretations or guidelines established, pursuant to Public Law 104-55, carry out the intent of Congress and recognize and provide for the differences in the physical, chemical, biological, and other properties. and in the environmental effects, of the classes of fats, oils, and greases described under that law."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 2704 of this title. SUBCHAPTER II-PRINCE WILLIAM SOUND PROVISIONS

§ 2731. Oil Spill Recovery Institute (a) Establishment of Institute

The Secretary of Commerce shall provide for the establishment of a Prince William Sound Oil Spill Recovery Institute (hereinafter in this section referred to as the "Institute") through the Prince William Sound Science and Technology Institute located in Cordova, Alaska. (b) Functions

The Institute shall conduct research and carry out educational and demonstration projects designed to

[See main edition for text of (1)]

(2) complement Federal and State damage assessment efforts and determine, document, assess, and understand the long-range effects of Arctic or Subarctic oil spills on the natural resources of Prince William Sound and its adjacent waters (as generally depicted on the map entitled "EXXON VALDEZ oil spill dated March 1990"), and the environment, the economy, and the lifestyle and well-being of the people who are dependent on them, except that the Institute shall not conduct studies or make recommendations on any matter which is not directly related to Arctic or Subarctic oil spills or the effects thereof. (c) Advisory board

(1) In general

The policies of the Institute shall be determined by an advisory board, composed of 16 members appointed as follows:

(A) One representative appointed by each of the Commissioners of Fish and Game, Environmental Conservation, and Natural Resources of the State of Alaska, all of whom shall be State employees.

(B) One representative appointed by each of the Secretaries of Commerce, the Interior, and Transportation, who shall be Federal employees.

(C) Two representatives from the fishing industry appointed by the Governor of the State of Alaska from among residents of communities in Alaska that were affected by the EXXON VALDEZ oil spill, who shall serve terms of 2 years each. Interested organizations from within the fishing industry may submit the names of qualified individuals for consideration by the Governor.

(D) Two Alaska Natives who represent Native entities affected by the EXXON VALDEZ oil spill, at least one of whom represents an entity located in Prince William Sound, appointed by the Governor of Alaska from a list of 4 qualified individuals submitted by the Alaska Federation of Natives, who shall serve terms of 2 years each.

(E) Two representatives from the oil and gas industry to be appointed by the Governor of the State of Alaska who shall serve terms of 2 years each. Interested organizations from within the oil and gas industry may submit the names of qualified individuals for consideration by the Governor.

(F) Two at-large representatives from among residents of communities in Alaska that were affected by the EXXON VALDEZ oil spill who are knowledgeable about the marine environment and wildlife within Prince William Sound, and who shall serve terms of 2 years each, appointed by the remaining members of the Advisory Board. Interested parties may submit the names of qualified individuals for consideration by the Advisory Board.

(G) One nonvoting representative of the Institute of Marine Science.

(H) One nonvoting representative appointed by the Prince William Sound Science and Technology Institute.

[See main edition for text of (2) and (3)]

(4) Scientific review

The Advisory Board may request a scientific review of the research program every five years by the National Academy of Sciences which shall perform the review, if requested, as part of its responsibilities under section 2761(b)(2) of this title.

(d) Scientific and technical committee

[See main edition for text of (1)]

(2) Functions

The Scientific and Technical Committee shall provide such advice to the Advisory Board as the Advisory Board shall request, including recommendations regarding the conduct and support of research, projects, and studies in accordance with the purposes of this section. The Advisory Board shall not request, and the Committee shall not provide, any advice which is not directly related to Arctic or Subarctic oil spills or the effects thereof. (e) Director

The Institute shall be administered by a Director appointed by the Advisory Board. The Prince William Sound Science and Technology Institute and the Scientific and Technical Committee may each submit independent recommendations for the Advisory Board's consideration for appointment as Director. The Director may hire such staff and incur such expenses on behalf of the Institute as are authorized by the Advisory Board.

[See main edition for text of (f) to (h)]

(i) Termination

The authorization in section 2736(b) of this title providing funding for the Institute shall terminate 10 years after October 19, 1996. (j) Use of funds

No funds made available to carry out this section may be used to initiate litigation. No funds made available to carry out this section may be used for the acquisition of real property (including buildings) or construction of any building. No more than 20 percent of funds made available to carry out this section may be used to lease necessary facilities and to administer the Institute. The Advisory Board may compensate its Federal representatives for their reasonable travel costs. None of the funds authorized by this section shall be used for any purpose other than the functions specified in subsection (b) of this section.

[See main edition for text of (k) and (1)]

(As amended Pub. L. 104-324, title XI, § 1102(a), Oct. 19, 1996, 110 Stat. 3964.)

AMENDMENTS

1996-Subsec. (a). Pub. L. 104-324, §1102(a)(1), (2), struck out "to be administered by the Secretary of Commerce" after "as the 'Institute')" and substituted "located" for "and located".

Subsec. (b)(2). Pub. L. 104-324, §1102(a)(3), substituted "Arctic or Subarctic oil spills" for "the EXXON VALDEZ oil spill" in two places.

Subsec. (c)(1). Pub. L. 104–324. §1102(a)(4), substituted "16" for "18" in introductory provisions.

Subsec. (c)(1)(A). Pub. L. 104-324, §1102(a)(5), substituted", and Natural Resources" for ", Natural Resources, and Commerce and Economic Development".

Subsec. (c)(1)(B). Pub. L. 104-324, § 1102(a)(6), (8), added subpar. (B) and struck out former subpar. (B) which read as follows: "One representative appointed by each of

"(i) the Secretaries of Commerce, the Interior, Agriculture, Transportation, and the Navy; and

"(ii) the Administrator of the Environmental Protection Agency;

all of whom shall be Federal employees."

Subsec. (c)(1)(C). Pub. L. 104-324, §1102(a)(6), (8), added subpar. (C) and struck out former subpar. (C) which read as follows: "4 representatives appointed by the Secretary of Commerce from among residents of communities in Alaska that were affected by the EXXON VALDEZ oil spill who are knowledgeable about fisheries, other local industries, the marine environment, wildlife, public health, safety, or education. At least 2 of the representatives shall be appointed from among residents of communities located in Prince William Sound. The Secretary shall appoint residents to serve terms of 2 years each, from a list of 8 qualified individuals to be submitted by the Governor of the State of Alaska based on recommendations made by the governing body of each affected community. Each affected community may submit the names of 2 qualified individuals for the Governor's consideration. No more than 5 of the 8 qualified persons recommended by the Governor shall be members of the same political party."

Subsec. (c)(1)(D). Pub. L. 104-324, §1102(a)(6), (8), added subpar. (D) and struck out former subpar. (D) which read as follows: "3 Alaska Natives who represent Native entities affected by the EXXON VALDEZ oil spill, at least one of whom represents an entity located in Prince William Sound, to serve terms of 2 years each from a list of 6 qualified individuals submitted by the Alaska Federation of Natives."

Subsec. (c)(1)(E) to (H). Pub. L. 104-324, §1102(a)(7), (8), added subpars. (E) and (F) and redesignated former subpars. (E) and (F) as (G) and (H), respectively.

Subsec. (c)(4). Pub. L. 104–324, §1102(a)(9), added par. (4).

Subsec. (d)(2). Pub. L. 104–324, §1102(a)(10), substituted "Arctic or Subarctic oil spills" for "the EXXON VALDEZ oil spill".

Subsec. (e). Pub. L. 104-324, §1102(a)(11)-(13), substituted "appointed by the Advisory Board" for "appointed by the Secretary of Commerce", struck out ", the Advisory Board," after "Technology Institute", and substituted "Advisory Board's" for "Secretary's".

Subsec. (i). Pub. L. 104-324, §1102(a)(14), (15), inserted "authorization in section 2736(b) of this title providing funding for the" after "The" and substituted "October 19, 1996" for "August 18, 1990".

Subsec. (j). Pub. L. 104-324, §1102(a)(16), (17), struck out first sentence which read as follows: "All funds authorized for the Institute shall be provided through the National Oceanic and Atmospheric Administration.", and inserted "The Advisory Board may compensate its Federal representatives for their reasonable travel costs." after "Institute."

§ 2734. Vessel traffic service system

ABOLITION OF HOUSE COMMITTEE ON MERCHANT MARINE AND FISHERIES

Committee on Merchant Marine and Fisheries of House of Representatives abolished and its jurisdiction transferred by House Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995. For treatment of references to Committee on Merchant Marine and Fisheries, see section 1(b)(3) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress. § 2736. Funding

(a) Sections 2731, 2733, and 2734

Amounts in the Fund shall be available, without further appropriations and without fiscal

year limitation, to carry out section 2731 of this title in the amount as determined in subsection (b) of this section, and to carry out sections 2733 and 2734 of this title, in an amount not to exceed $5,000,000.

(b) Use of interest only

The amount of funding to be made available annually to carry out section 2731 of this title shall be the interest produced by the Fund's investment of the $22,500,000 remaining funding authorized for the Prince William Sound Oil Spill Recovery Institute and currently deposited in the Fund and invested by the Secretary of the Treasury in income producing securities along with other funds comprising the Fund. The National Pollution Funds Center shall transfer all such accrued interest, including the interest earned from the date funds in the Trans-Alaska Liability Pipeline Fund were transferred into the Oil Spill Liability Trust Fund pursuant to section 8102(a)(2)(B)(ii), to the Prince William Sound Oil Spill Recovery Institute annually, beginning 60 days after October 19, 1996.

(c) Use for section 2712

Beginning with the eleventh year following October 19, 1996, the funding authorized for the Prince William Sound Oil Spill Recovery Institute and deposited in the Fund shall thereafter be made available for purposes of section 2712 of this title in Alaska.

(As amended Pub. L. 104-324, title XI, §1102(b), Oct. 19, 1996, 110 Stat. 3965.)

REFERENCES IN TEXT

Section 8102(a)(2)(B)(ii), referred to in subsec. (b), is section 8102(a)(2)(B)(ii) of Pub. L. 101-380, title VIII, Aug. 18, 1990, 104 Stat. 565, which is set out as a note under section 1653 of Title 43, Public Lands.

AMENDMENTS

1996 Subsec. (a). Pub. L. 104-324, §1102(b)(1) (3), redesignated subsec. (b) as (a), substituted "2731, 2733," for "2733" in heading, inserted "to carry out section 2731 of this title in the amount as determined in subsection (b) of this section, and" after "limitation,", and struck out heading and text of former subsec. (a). Text read as follows: "Amounts in the Fund shall be available, subject to appropriations, and shall remain available until expended, to carry out section 2731 of this title as follows:

**(1) $5,000,000 shall be available for the first fiscal year beginning after August 18, 1990.

"(2) $2,000,000 shall be available for each of the 9 fiscal years following the fiscal year described in paragraph (1)."

Subsecs. (b), (c). Pub. L. 104-324, §1102(b)(4), added subsecs. (b) and (c). Former subsec. (b) redesignated (a).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2712, 2731, 2752, 2761 of this title.

SUBCHAPTER III-MISCELLANEOUS

§ 2752. Annual appropriations

[See main edition for text of (a)]

(b) Exceptions

Subsection (a) of this section shall not apply to sections1 2706(f), 2712(a)(4), or 2736 of this

1 So in original. Probably should be "section".

title, and shall not apply to an amount not to exceed $50,000,000 in any fiscal year which the President may make available from the Fund to carry out section 1321(c) of this title and to initiate the assessment of natural resources damages required under section 2706 of this title. Sums to which this subsection applies shall remain available until expended.

(As amended Pub. L. 104-324, title XI, §1102(c)(1), Oct. 19, 1996, 110 Stat. 3966.)

AMENDMENTS

1996 Subsec. (b). Pub. L. 104-324 substituted "2736" for "2736(b)".

§ 2753. Repealed. Pub. L. 104–134, title I, §101(c) [title I, §109], Apr. 26, 1996, 110 Stat. 1321-156, 1321–177; renumbered title I, Pub. L. 104-140, 81(a), May 2, 1996, 110 Stat. 1327 Section, Pub. L. 101-380, title VI, §6003, Aug. 18, 1990, 104 Stat. 555, related to protection of the Outer Banks of North Carolina.

SUBCHAPTER IV-OIL POLLUTION RESEARCH AND DEVELOPMENT PROGRAM §2761. Oil pollution research and development program

[See main edition for text of (a) and (b)] (c) Oil pollution research and development pro

gram

[See main edition for text of (1)]

(2) Innovative oil pollution technology

The program established under this subsection shall provide for research, development, and demonstration of new or improved technologies which are effective in preventing or mitigating oil discharges and which protect the environment, including—

[See main edition for text of (A) to (C)]

(D) research and training, in consultation with the National Response Team, to improve industry's and Government's ability to quickly and effectively remove an oil discharge, including the long-term use, as appropriate, of the National Spill Control School in Corpus Christi, Texas, and the Center for Marine Training and Safety in Galveston, Texas;

[See main edition for text of (E) to (J), (3) to (8)] (9) Funding

For each of the fiscal years 1991, 1992, 1993, 1994, and 1995, $6,000,000 of amounts in the Fund shall be available to carry out the regional research program in paragraph (8), such amounts to be available in equal amounts for the regional research program in each region; except that if the agencies represented on the Interagency Committee determine that regional research needs exist which cannot be addressed within such funding limits, such agencies may use their authority under paragraph (10) to make additional grants to meet such needs. For the purposes of this paragraph, the research program carried out by the