United States
Environmental Protection
Agency
Solid Waste and
Emergency Response
(5305W)
EPA540-R-98-023
OSWER9205.5-09A
PB98-963 231
June 1998
&EPA
RCRA, Superfund & EPCRA
Hotline Training Module
Introduction to:
Oil Pollution Prevention
Regulation and the
Oil Pollution Act of 1990
Updated February 1998
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DISCLAIMER
This document was developed by Booz-Allen & Hamilton Inc under contract 68-WO-0039 to EPA. It is
intended to be used as a training tool for Hotline specialists and does not represent a statement of EPA
policy.
The information in this document is not by any means a complete representation of EPA's regulations or
policies. This document is used only in the capacity of the Hotline training and is not used as a reference
tool on Hotline calls. The Hotline revises and updates this document as regulatory program areas change.
The information in this document may not necessarily reflect the current position of the Agency. This
document is not intended and cannot be relied upon to create any rights, substantive or procedural,
enforceable by any party in litigation with the United States
RCRA, Superfund & EPCRA Hotline Phone Numbers:
National toll-free (outside of DC area) (800) 424-9346
Local number (within DC area) (703) 412-9810
National toll-free for the hearing impaired (TDD) (800) 553-7672
The Hotline is open from 9 am to 6 pm Eastern Time,
Monday through Friday, except for federal holidays.
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OIL POLLUTION PREVENTION REGULATION AND THE OIL
POLLUTION ACT OF 1990
CONTENTS
1. Introduction 1
2. Statutory History 3
3. Oil Spill Program 5
3.1 Prevention and Preparedness 5
3.2 Response 9
3.3 Liability and Compensation 14
3.4 Research and Training 18
4. Regulatory Developments 19
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OPA/SPCC-I
1. INTRODUCTION
Billions of gallons of oil currently stored in the United States and shipped across its
waters pose a serious potential threat to the environment. Oil spills can damage
plants and animals in the fresh water and marine environment. Birds, fish and
other wildlife can lose necessary food sources and habitat. Economic effects can be
drastic as well, if an oil spill decreases recreation and tourism revenues and harms
commercial fisheries. Populations which depend on marine resources as part of
their traditional, subsistence culture can see their way of life destroyed.
The Federal Water Pollution Control Act (a.k.a. the Clean Water Act) marked a
milestone in addressing the problems of oil pollution by mandating regulations for
the prevention of oil spills into the navigable waters of the United States. The
federal oil spill regulations were promulgated on December 11,1973, and came to be
known as the Spill Prevention, Control, and Countermeasures (SPCC) regulations.
They provided a basic framework for operational procedures, containment
requirements and response needs of certain facilities that might release oil into
navigable waters.
Despite the implementation of the SPCC and other federal prevention regulations,
the United States experienced increasing problems with oil spills in the 1970s and
1980s, as dramatized by the oil release from the Exxon Valdez in Alaska's Prince
William Sound in 1989. On March 24,1989, the tank vessel Exxon Valdez struck
Blight Reef in Prince William Sound, Alaska releasing nearly 11 million gallons of
crude oil. The oil slick spread over 3,000 square miles and onto over 350 miles of
beaches. In response to this and other major oil spills, Congress enacted the Oil
Pollution Act (OPA) of 1990. The goals of OPA are to expand planning and spill
prevention activities, to improve preparedness and response capabilities, to ensure
that shippers and oil companies pay for cleanups, and to establish a research and
development program.
Under OPA, tank vessels, offshore oil facilities, and certain onshore facilities are
required to submit response plans designed to ensure that sufficient personnel and
equipment are available to respond to and mitigate a worst-case discharge. The
response plans focus on response activities and must be consistent with other
statutes and regulations, including SARA Title III and the National Oil and
Hazardous Substances Pollution Contingency Plan (NCP).
Aside from facility-specific requirements to mitigate oil spills, the federal
government has established a coordinated network of officials to respond, if
necessary, to oil spills by providing technical support and response equipment as
needed. Reportable releases of oil into navigable waters must be reported to the
National Response Center so the appropriate response can be determined.
The goal of this module is to explain the purpose, scope, and reporting requirements
under the Spill Prevention Control and Countermeasures (SPCC) and related
The information in this document is not by any means a complete representation ot EPA's regulations or pol
but is an introduction used for Hotline training purposes
icies.
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2 -OPA/SPCC
regulations and the Oil Pollution Act of 1990. After you have completed this
module you will be able to:
• Identify the major objectives of the Oil Pollution Act of 1990
• Identify which facilities must prepare SPCC plans and which must prepare
Facility Response Plans
• Explain what facilities must do to comply with the notification requirements
for a discharge of a harmful quantity of oil
• Explain what the Oil Spill Liability Trust Fund is and how it is funded and
used.
Use this list of objectives to check your knowledge of this topic after you complete
the training session.
The information in this document is not by any means a complete representation or EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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OPA/SPCC-3
2. STATUTORY HISTORY
The goal of the Rivers and Harbors Act of 1899 was to protect the navigability of
commercial waters. Under this Act, many programs have been developed to protect
U.S. waters. In 1948, the Water Pollution Control Act provided the first funds for
constructing publicly owned treatment works (POTWs) which treat municipal
wastewater prior to its discharge into the environment. The Water Quality Act of
1965 later established interstate water quality standards. This Act specified water
quality standards each water body was required to achieve or maintain. The Federal
Water Pollution Control Act, or Clean Water Act (CWA) of 1972 established an
effective technology-based approach to maintaining water quality. This technology-
based approach prohibited discharges without a permit and allowed permitted
discharges to release limited amounts of chemicals. Those limitations are based on
best available technology, or other technology-driven standards. As a result of this
approach, most point source discharges were successfully controlled, and the quality
of the nation's waters generally remained stable, or improved slightly.
The Clean Water Act (CWA) sets the framework for a comprehensive program for
water pollution control. The major objectives of the CWA include eliminating
pollutant discharges to navigable waters, attaining water quality standards which
provide for the protection and propagation of fish, shellfish and wildlife, and
providing federal financial assistance for the construction of publicly owned waste
treatment works.
Section 311 of the CWA prohibits discharges of oil or hazardous substances into or
upon the navigable waters of the United States, adjoining shorelines, or into or
upon the waters of the contiguous zone. Specifically, CWA §311(j)(l) requires the
promulgation of the SPCC regulations which were promulgated on December 11,
1973 (38 FR 34164). The SPCC regulations established spill prevention procedures
and equipment requirements for non-transportation-related facilities with
aboveground oil storage capacity greater than 1,320 gallons (or 660 gallons in a single
tank) or underground storage capacity greater than 42,000 gallons. Regulated
facilities include only those facilities that, based on geographic location, could
reasonably be expected to discharge oil into or upon the navigable waters of the
United States or adjoining shorelines.
The authority to regulate non-transportation-related onshore and offshore facilities
under CWA §311(j)(l)(C) was delegated by the President to the Environmental
Protection Agency (EPA) in Executive Order 11735. In E.G. 11735 the authority to
regulate transportation-related onshore and offshore facilities under CWA
§311(j)(l)(C) was delegated to the United States Coast Guard (USCG), which currently
operates under the authority of the U.S. Department of Transportation (DOT).
Figure 1 below further illustrates for which types of facilities different federal
agencies need to develop oil pollution prevention regulations.
The information tn this document is, not by any means a complete representation or EPA':, regulations or policies,
but is an mlro'ducfion used for Hotline training purposes
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4 -OPA/SPCC
Figure 1
FEDERAL AGENCY RESPONSIBILITIES
Federal Agency
Environmental Protection Agency
(EPA)
Department of Transportation
(DOT)
U.S. Coast Guard
(USCG, under DOT)
Department of the Interior
(DOT)
Facility Type
On-shore and offshore, non-
transportation related facilities
Pipelines, deepwater ports and their
associated pipelines
Marine terminals
Off-shore fixed facilities beyond the
coastline
A Memorandum of Understanding (MOU) between the Secretary of Transportation
and the EPA Administrator establishes the responsibilities of EPA and DOT for
purposes of administering their respective SPCC programs. This MOU, dated
November 24, 1971 (36 FR 24080), delineated the responsibilities so that EPA
regulates non-transportation-related onshore and offshore facilities and DOT
regulates transportation-related onshore and offshore facilities. The use of the word
transportation refers specifically to the transportation of oil. A section of the MOU
appears in 40 CFR Part 112, Appendix A and provides definitions of the two
categories of facilities. Facilities must look at the definitions carefully to determine
under which agency they are regulated.
The Oil Pollution Act (OPA) of 1990 amends CWA §311(j) by directing the President
to issue regulations requiring owners or operators of tank vessels, offshore facilities,
and certain onshore facilities to prepare and submit Facility Response Plans (FRPs).
The President delegated the authority to EPA to regulate non-transportation-related
onshore facilities through the issuance of E.G. 12777 (56 F_E 54757; October 22,1991).
The FRP prepares a facility for responding, to the maximum extent practicable, to a
worst case discharge of oil. EPA issued the final guidelines for developing the FRP
in the July 1,1994, Federal Register (59 FR 34070).
I he information in this document is not by any means a complete representation ot EPA's regulations or policies,
but is nn introduction used for Hotline training purposes
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OPA/SPCC-5
3. OIL SPILL PROGRAM
The severe economic and devastating environmental effects of oil spills are evident
as illustrated by major incidents such as the spill from the Exxon Valdez in 1989. To
prevent disasters like this in the future, EPA developed the Oil Spill Program as
mandated by the Oil Pollution Act of 1990 which amends CWA §311(j). There are
four main goals of the Oil Spill Program. They are: preparedness and prevention;
response; compensation and liability; and research and training. Each are discussed
in more detail below.
3.1 PREVENTION AND PREPAREDNESS
Preparedness and prevention is the best defense against mitigating the damage
caused by oil spills. EPA requires high-risk facilities to prepare and implement SPCC
plans to achieve the goal of preventing oil spills from reaching navigable waters.
The SPCC plan requirements have three goals. The first is to prevent oil spills.
Operating procedures, such as inspections, recordkeeping, security, personnel
training, and tank specifications, address this goal (40 CFR §112.7(e)). The second
goal is to prevent spills from reaching navigable waters or adjoining shoreline. All
SPCC facilities must install appropriate containment and/or diversionary structures
to prevent spills from reaching waters, unless installation is impracticable (40 CFR
§112.7(c)). In addition to the minimum requirement for appropriate containment
and/or diversionary structures, other secondary containment requirements are
specified in 40 CFR §112.7(e). For example, bulk storage tanks must have sufficient
secondary containment to hold the contents of the largest single tank, allowing for
precipitation. The third goal of the SPCC plan is to prepare for responding to an oil
spill. Facilities who cannot install appropriate containment and/or diversionary
structures must be able to clearly demonstrate the impracticability of installation,
and must have a strong oil spill contingency plan and a written commitment of
response manpower, equipment, and materials (40 CFR §112.7(d)).
APPLICABILITY OF SPCC PLANS
SPCC plan regulations apply to non-transportation related onshore and offshore
facilities with an underground buried storage capacity greater than 42,000 gallons, or
an aboveground storage capacity greater than 660 gallons in one tank, or over 1,320
gallons in total. These facilities are only subject to SPCC requirements if they could
reasonably be expected to discharge harmful quantities of oil into the navigable
waters of the United States. Each bolded term is crucial in determining a facilities'
applicability and are defined as follows:
The information in this document is not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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6 -OPA/SPCC
• Non-transportation-related facilities are fixed or mobile facilities involved in
oil production, refining, storage, or well-drilling. Industrial commercial,
agricultural, or public facilities which use and store oil, waste treatment
facilities, loading equipment, and vehicles transporting oil within the facility
are also non-transportation related facilities (40 CFR Part 112, Appendix A).
• A harmful quantity of discharged oil is one that violates water quality
standards, causes a film or sheen on the surface of the water or adjoining
shoreline, or causes a sludge or emulsion to be deposited beneath the surface
of the water (40 CFR §110.3).
• Oil means oil of any kind or in any form, including but not limited to
petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes other than
dredged spoil (40 CFR §112.2). EPA interprets this definition to include crude
oil and refined petroleum products, as well as non-petroleum oils such as
vegetable and animal (56 FR 54617; October 22,1991). EPA clarifies the terms
petroleum oil, non-petroleum oil, animal fat, vegetable oil, and other non-
petroleum oil in the preamble to the facility response plan final rule (59 FR
34088; July 1,1994).
• Navigable waters includes interstate waters and intrastate waters such as
lakes, rivers, streams, wetlands, mudflats, sandflats, and waters involved in
interstate or foreign commerce. It also includes the territorial seas (40 CFR
§110.1). Essentially, the term navigable waters refers to any natural surface
water in the United States.
Figure 2 further illustrates how the SPCC plan applicability determination is
made.
SPCC facilities are required to prepare and implement a comprehensive and feasible
SPCC plan. It must be prepared within six months after operations begin, and
implemented as soon as possible. The time limit for implementation of the plan is
no later than one year after operations begin. A registered professional engineer
(PE) must certify the SPCC plan, which shall be kept at the facility if it is normally
staffed at least 8 hours a day. A facility staffed for less than 8 hours a day shall
maintain the plan at the nearest field office (40 CFR §112.3).
Facilities are required to amend SPCC plans when changes to a facility's design,
construction, operation, or maintenance materially affect the potential for a harmful
discharge of oil to navigable waters or adjoining shorelines. Regardless of such
changes, every three years the plan must be reviewed and evaluated. At this time,
an amendment may be required to include more effective prevention and control
technology (40 CFR §112.5). Also, if a facility has had more than a 1,000 gallon spill,
or two spills within 12 months, the SPCC plan and information about the facility
and the spill must be submitted to the state and to the Regional Administrator (RA)
The information in this document 11, not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes.
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OPA/SPCC - 7
Figure 2
SPCC PLAN APPLICABILITY
Is the facility an onshore or
offshore non-transportation-
related facility?
Yes
Could the facility, due to its
geographic location,
reasonably be expected to
have a harmful discharge of oil
to navigable waters?
Yes
Does the facility have an
underground buried storage
capacity greater than
42,000 gallons?
No
Does the facility have a total
above ground storage
capacity above 1,320 gallons?
No
Does the facility have more
than 660 gallons above ground
storage capacity in a single
container?
No
SPCC plan not required
No
SPCC plan
not required
No
Yes
SPCC plan
required
Yes
The information in this document is not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes.
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8 -OPA/SPCC
within 60 days. The RA may then require an amendment to the SPCC plan (40 CFR
§112.4).
Under OPA §4113, EPA conducted a study to determine whether liners or other
secondary means of containment should be used to prevent leaking or to aid in leak
detection at onshore facilities used for the bulk storage of oil and located near
navigable waters. EPA published its findings in a May 1996 Report to Congress
called the "EPA Liner Study" (OSWER Directive 9380.0-24). EPA examined the
environmental effectiveness and installation costs for various liner designs and
facility types.
3.2 RESPONSE
Accidents may occur despite the existence of measures to prevent them. Due to the
fact that approximately 19,000 oil spills are reported yearly, Congress recognized the
necessity of devising a system for oil spill response. As it currently exists, OPA's
response system is a collaboration among federal, state, and local authorities and the
parries responsible for the spill.
FEDERAL RESPONSE AUTHORITY
The key to a successful response system is having many resources readily available.
OPA, in amending §311(c) of the CWA, expanded the role of the federal government
in responding to releases. If the discharge is of such size or character as to pose a
substantial threat to the public health or welfare, the federal government, through
an On-Scene Coordinator (OSC), is required to direct responses. The NCP is the
blueprint for federal response in the case of the release of oil. Under the NCP, EPA
is the lead federal response agency for oil spills occurring in inland waters, and the
U.S. Coast Guard (USCG) is the lead response agency for spills in coastal waters and
deep water ports. Procedures, techniques, and standards for responding to oil
releases have been developed. In particular, Subpart D of 40 CFR Part 300 provides
operational direction for oil removal.
For an oil spill that requires a greater scope of federal support and resources, the OSC
may activate the Regional Response Team (RRT), comprised of federal officials and
state and local representatives (40 CFR §300.110). There are thirteen RRTs in the
U.S., each representing a geographical region. The four major responsibilities of
RRTs are: (1) responding to an OSC's request for assistance in the form of technical
advice, equipment, or manpower; (2) development of a Regional Contingency Plan
to delineate the roles of federal and state agencies during an actual incident; (3)
develop simulation exercises; and (4) coordinate available resources from each
federal agency and state within their regions.
The National Response Team (NRT) is an interagency group co-chaired by the EPA
and USCG with representatives from 16 federal agencies. The NRT does not directly
The information in this document is not by any means a com
but is an introduction used for Hotline training purposes
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OPA/SPCC-9
respond to releases, but it is responsible for three major activities related to
managing responses: (1) distributing technical and financial information about oil
spills to all members of the team; (2) ensuring that the emergency response roles of
federal agencies on the Team are clearly outlined in the NCP; and
(3) developing training courses and programs for emergencies.
To provide even greater federal response coordination, OPA mandated the
formation of a National Response System which is supervised by the USCG. A
National Response Unit is established in Elizabeth City, North Carolina where the
center provides a list of spill removal resources, personnel, and equipment. The
center also provides technical assistance and coordinates private and public response
personnel. Additionally, Coast Guard Districts have been set up to respond with
Coast Guard personnel and equipment. Figure 3 outlines the federal response
protocol.
In the act of removing the oil, defensive measures or countermeasures must be
implemented immediately. For example, an oil spill often requires the assembly of
equipment to mechanically remove the oil from water. Skimmers are one such
device which remove oil from water. The NCP provides guidance for such
measures. Subpart J of the NCP requires EPA to maintain the NCP Product
Schedule, which is a list of approved dispersants, bioremediation agents, and other
chemicals for the removal of oil.
FACILITY RESPONSE PLANS (FRPs)
Section 4202 of OPA amends CWA §311(j) requiring owners or operators of offshore
facilities, tank vessels, and certain onshore facilities to prepare and submit to the
federal government a plan for responding to a worst-case oil discharge or a
substantial threat of such a discharge. EPA is responsible for regulating plans for
non-transportation-related onshore facilities (Executive Order 12777). The Agency
promulgated regulations on July 1, 1994 (59 FR 34070), which are codified in the
SPCC regulations at 40 CFR Part 112. The Agency requires the owner or operator of
any non-transportation-related onshore facility that, because of its location, could
reasonably be expected to cause "substantial harm" to the environment by
discharging oil into or on the navigable waters or adjoining shorelines to prepare
and submit a facility response plan (FRP) to the Regional Administrator (RA) (40
CFR §112.20(a)).
In determining applicability, the first criterion to be met is that the facility meet the
definition of a non-transportation-related facility, as defined in the MOU between
the Secretary of Transportation and the Administrator (40 CFR Part 112, Appendix
A). Next, the owner or operator must determine if the facility poses substantial
harm to the environment. EPA provides two methods by which a facility may be so
identified: (1) a self-selection process; or (2) by a determination of the RA. In the
self-selection process, facilities should refer to the substantial harm criteria set forth
in 40 CFR §112.20(f)(l). These criteria are outlined in Figure 4.
The information in this document is not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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10 -OPA/SPCC
Figure 3
FEDERAL RESPONSE PROTOCOL
Notification
National Response
Center
OSC/RPM
Notification
Federal
Assistance
Required?
National
Response
Team
Regional
Response
Team
1
Yes
No
State/Local/
Responsible Party
(RP) Response
OSC/RPM J
State, RP J
The information in this document is not by any means a complete representation of E
but is an introduction used for Hotline training purposes
EPA's regulations or policies.
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OPA/SPCC-11
Figure 4
SUBSTANTIAL HARM CRITERIA (40 CFR §112.20(f)(D)
(1) The facility transfers oil over water to or from vessels and has a total
oil storage capacity greater than or equal to 42,000 gallons,
OR
(2) The facility's total oil storage capacity is greater than or equal to 1
million gallons, and one or more of the following is true
/ ,
The facility does not
have secondary
containment for each
aboveground storage
area sufficiently large
to contain the
capacity of the largest
aboveground storage
tank within each
storage area plus
sufficient freeboard
to allow for
precipitation,
r 1
The facility is located
at a distance such that
a discharge from the
facility could cause
injury to fish and
wildlife and sensitive
environments,
. \
The facility has had
a reportable spill
greater than or
equal to 10,000
gallons within the
last 5 years,
I
The facility is
located at a distance
such that a
discharge would
shut down
operations at a
public drinking
with intake
The RA may also refer to the same criteria, as well as additional factors including
type of transfer operations at a facility, lack of secondary containment, and proximity
to environmentally sensitive areas or drinking-water intakes.
At their inception, the response planning regulations required covered facilities to
submit their FRP by February 18,1993, in accordance with the statutory deadline. If a
covered facility met this deadline, the owner or operator was required to revise the
response plan to meet regulatory requirements and resubmit it by February 18, 1995.
If a covered facility did not meet this deadline, the owner/operator had to submit a
response plan to the RA by August 30,1994. An existing facility that did not
formerly meet the applicability requirements, but because of a change in operations
now poses a substantial harm to the environment, must submit the plan before
implementing the change. And for facilities that are newly constructed, a FRP must
be prepared and submitted prior to the start of operations.
Once it has been determined that a facility is required to submit a FRP because it is a
substantial harm facility, the RA must review the facility information to determine
The information in this document is not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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12 -OPA/SPCC
if the facility poses "significant and substantial harm." In making this
determination, the RA may refer to the substantial harm factors of 40 CFR
§112.20(f)(l) (see Figure 4) as well as additional site-specific characteristics and
environmental factors set forth in 40 CFR §112.20(f)(3). Additional site-specific
characteristics and environmental factors to consider may include: frequency of past
oil spills; proximity to navigable waters; and age of oil storage tanks. If a facility is
designated as a significant and substantial harm facility, the RA must review and
approve its response plan. Figure 5 shows requirements for different categories of
facilities.
Figure 5
SIGNIFICANT AND SUBSTANTIAL HARM
Substantial
Harm
Facility
No
Yes
Submit
FRP
Significant
and
Substantial
Harm
No
Yes
Approval
1
No Submittal of
FRP except at RA
Discretion,
maintain
certification form at
facility
Because of the high threshold volumes, many facilities do not meet the substantial
harm criteria. In that instance, the owner or operator must complete and maintain
at the facility a certification form indicating that the facility could not because of its
location, reasonably be expected to cause substantial harm to the environment by
discharging oil into or on the navigable waters or adjoining shorelines (40 CFR
§112.20(e) and Appendix C).
The FRP must follow the format specified in 40 CFR Part 112, Appendix F unless an
equivalent format has been prepared to meet state or other federal requirements.
The elements of the response plan include the following:
• Emergency response action plan
• Facility information
The information in this document is not by any means a complete representation of EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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OPA/SPCC -13
• Emergency response information
• Hazard evaluation
• Discharge scenarios
• Discharge detection methods
• Plan implementation strategies
• Facility self-inspection
• Training and meeting logs
• Site diagrams
• Description of security measures.
Furthermore, the response plan must be consistent with the requirements of the
National Contingency Plan (NCP) and applicable Area Contingency Plans (ACP).
The plans should also be coordinated with local emergency plans developed by local
emergency planning committees under §303 of the Emergency Planning and
Community Right-to-Know Act (EPCRA).
RELEASE NOTIFICATION
Pursuant to the CWA §311(b)(3), notification requirements have been established for
the release of oil into navigable waters or onto adjoining shorelines (40 CFR
§§110.10,300.125,300.300, and 300.405(b)). A discharge must be reported to the
National Response Center by the person in charge of the facility or vessel if the
discharge: (1) causes a sheen to appear on the surface of the water; (2) violates
applicable water quality standards, or causes sludge or emulsion to be deposited
beneath the surface of the water or upon the adjoining shorelines.
To emphasize the importance of proper notification, OPA provides the agency and
the courts with the authority to charge the owner and operator criminally for the
failure to notify the NRC of a discharge. Furthermore, an owner/opera tor is subject
to civil penalties for the actual discharge of the oil. And further penalties may be
assessed for failure to remove the oil and failure to comply with an administrative
order. These provisions can be found in the CWA §311, which was amended by
OPA §4301.
3.3 LIABILITY AND COMPENSATION
The third goal of OPA is to expand the liability and compensation regime. The
purpose is to actively pursue and collect compensation from polluters who are
responsible for oil spills into navigable waters. OPA provides the authority to make
the party responsible for a discharge of oil from a facility or vessel pay for the
The information in this document is not by any means a complete representation or EPA's regulations or policies,
but is nn introduction used for Hotline training purposes.
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14 -OPA/SPCC
cleanup and compensate for lost natural resources (OPA §1002(a)). In order to be
held liable for removal costs and damages, the people associated with the cause of an
oil spill must meet the statutory definition of responsible party.
The responsible party (RP), defined at OPA §1001(32), is an owner or operator whose
vessel or facility is the source of an oil discharge or which poses the substantial
threat of a discharge. OPA's liability provisions apply to vessels, as well as onshore
and offshore facilities. For example, in a deepwater port the RP could be the licensee
of the port, or for an offshore facility the RP may be the lessee or the permittee of the
area in which the facility is located. Public entities, however, do not meet the
definition of responsible party in connection with onshore facilities.
OPA specifically outlines the costs for which the RP(s) will be held accountable. The
first type of cost, removal costs, include all costs incurred in the removal of oil from
the water and shorelines or from any other actions taken to mitigate damage to the
public health and welfare (OPA §1001). The second type of cost, damages, include
the reasonable costs of assessing natural resource damages; loss of subsistence use of
natural resources; real or personal property damages; net loss of tax and other
revenues; loss of profits or earning capacity; and net cost of additional public
services provided during or after removal actions.
In most cases, there are several parties who will meet the definition of a RP in the
event of an oil spill. The liability scheme under OPA does not discriminate, each RP
can be held responsible for all costs associated with cleanup, as well as damages.
Judicially, OPA liability is interpreted as strict, joint and several which is similar to
CERCLA liability. Strict liability is the assessment of legal responsibility without
regard to fault or diligence. Joint and several liability essentially means that anyone
meeting the definition of responsible party can be held liable for the entire cleanup,
regardless whether his/her contribution to the discharge was large or small. Since
dividing costs fairly between responsible parties is not addressed in OPA, RPs may
try to recover their costs from any other person who is liable or potentially liable
under OPA §1009.
OPA applies to any incident occurring after the date of enactment which was
August 18,1990 (OPA §1020). Assessment of penalties under OPA §4301(b) is clearly
not retroactive, but violations occurring before the enactment of OPA remain
subject to penalty provisions originally set forth in CWA §311 (59 FR 34071; July 1,
1994).
DEFENSES TO LIABILITY
There are three defenses available to a RP. If the RP can prove that one of these
defenses applies to his or her situation, then the RP will not be held liable for
response costs or damages (OPA §1003). These defenses are: (1) an act of God; (2) an
act of war; or (3) an act or omission of a third party, other than an employee or agent
of the RP or a third party whose act or omission occurs in connection with any
The information in this document is not by any means a complete representation ot EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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OPA/SPCC-15
contractual relationship with the responsible party. There are some situations
where the RP's actions void his or her ability to employ one of the defenses. These
actions include failing or refusing to report the discharge of the oil; failing to
provide all reasonable cooperation and assistance in removing the oil; or failing to
comply with an administrative or judicial order (OPA §1003(c)).
LIMITS ON LIABILITY
OPA provides limits on the amount of money a RP must pay in removal costs and
damages (OPA §1004). Different types of vessels and facilities have different limits
on liability. For instance, if a release occurs from an onshore facility, the RP can
only be held responsible up to 350 million dollars (See Figure 6). The limitations do
not, however, apply if the incident was caused by gross negligence or willful
misconduct on the part of the RP, or a person working under a contractual
relationship for the RP. Furthermore, if the RP fails to report the incident as
required by law, does not cooperate and assist in removal actions, or does not
comply with an order issued under CWA §311, then the limits on liability do not
apply (OPA § 1004(c)). Figure 6 shows the limits on liability provided by OPA.
Figure 6
LIMITS ON LIABILITY
Type of Vessel/Facility
Tank vessel
Other Vessel
Offshore facility
Deepwater port
Onshore facility
Mobile offshore drilling
unit
Limits Specified in OPA §1004
$1200/gross ton; or
for a vessel > 3000 gross tons, $10 million; or
for a vessel < 3000 gross tons, $2 million
$600 /gross ton or $500,000, whichever is greater
Removal costs plus $75 million
$350 million
$350 million
Same as tank vessel, unless costs and damages
exceed limits. If costs and damages are exceeded,
then treat as an offshore facility.
STATUTE OF LIMITATIONS
A statute of limitations establishes the maximum time periods during which certain
actions may be commenced. Once the established time period expires, no legal
action can be brought. OPA §1017(f) sets forth the statute of limitations for the
recovery of damages, the recovery of removal costs, and actions for contribution.
Figure 7 details the statute of limitations for each.
Tne information in this document is not by any means a complete representation ot EPA's regulations or policies
but is an intro'duction used for Hotline training f
; purposes
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16 -OPVSPCC
Figure 7
STATUTE OF LIMITATIONS (OPA §1017(0)
Type of Cost
Time Limitation
Damages
An action for damages must be commenced
within 3 years after the date of the discovery of
the loss, or in the case of natural resource
damages, the date of completion of the natural
resources damage assessment.
Removal Costs
An action for recovery of removal costs must be
commenced within 3 years after the completion
of the removal action.
Contribution
An action for contribution for any removal costs
or damages must be commenced no more than 3
years after the date of judgment in an action
brought under OPA or the date of a judicially
approved settlement of an action.
THE OIL SPILL LIABILITY TRUST FUND
As previously discussed, the owner or operator of a facility from which oil is
discharged is liable for the costs associated with the containment or cleanup of the
spill, as well as any damages resulting from the spill. EPA's first priority is to have
responsible parties finance the clean up of their own oil discharges. However, when
the RP is unknown or refuses to pay, the Oil Spill Liability Trust Fund (hereinafter
referred to as "the Fund") can cover removal costs and/or damages that are not
recovered from RPs. The emergency response portion of the Fund is administered
by the U.S. Coast Guard's National Pollution Funds Center (NPFC).
The Fund can provide up to $1 billion for any one oil pollution incident, including
up to $500 million for the initiation of natural resource damage assessments and
claims in connection with any single incident. The main uses of Fund expenditures
are:
* State access for removal actions (consistent with the NCP)
• Payments to federal, state and Indian tribe trustees to carry out natural
resource damage assessments and restorations (consistent with the NCP)
« Payment of claims for uncompensated removal costs and damages
« Research and development and other specific appropriations.
FUNDING THE FUND
The primary source of revenue for the Fund is a five-cents per barrel fee on
imported and domestic oil, which ceased on December 31, 1994. Other revenue
The information in this document is not by any means a complete representation ot EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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OPA/SPCC-17
sources for the Fund include interest on the fund, cost recovery from the parties
responsible for the spills, and any fines or civil penalties collected.
3.4 RESEARCH AND TRAINING
The Oil Pollution Act mandates research and training in oil pollution prevention
and response. OPA §7001 requires an interagency committee be established to
coordinate the creation of a program for conducting oil pollution research,
technology development, and demonstration. This program is specifically required
by the statute to provide research and development, and demonstration in a
number of areas, including: innovative oil pollution technologies; oil pollution
technology evaluation; oil pollution effects research; marine simulation research,
and; simulated environmental testing. Technologies that may be developed to
address the problem of oil pollution include: booms, skimmers, and containers for
temporary storage of oil during recovery activities; chemical treatment methods,
.such as dispersants; biological oil treatment methods, such as the introduction of
microorganisms and/or nutrients; and the use of aircraft and remote sensing in oil
spill cleanup and monitoring activities. EPA offers training courses for conducting
proper response measures in cases of inland oil spills, as well as an exercise program
for oil storage facilities.
The information
in this document is not by any means a complete representation ot EPA's regulations or policies,
but is an introduction used for Hotline training purposes.
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18 -OPA/SPCC
The information in this document is not by any means a complete representation of E
but is an introduction used for Hotline training purposes
itation of EPA's regulations or policies.
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OPA/SPCC-19
4. REGULATORY DEVELOPMENTS
In addition to the existing October 22,1991, proposed rule (56 FR 54612), a separate
SPCC proposed rule was published on December 2,1997 (62 FR 63812). The newest
proposed rule aims to provide flexibility and reduce the paperwork burden of
owners and operators of SPCC and FRP facilities. Although the proposed rule
would not change any of the substantive technical standards an owner or operator
must comply with, the proposed rule may reduce overall regulatory burden by
allowing facilities to meet some SPCC and FRP requirements simply by referencing
identical requirements owners or operators are already meeting under other
environmental laws.
The proposed rule would revise the definition of SPCC Plan and allow an Integrated
Contingency Plan (ICP) or a state plan that meets all the requirements of the SPCC
regulations to be counted as an SPCC Plan if it is cross-referenced. EPA hopes this
measure will simplify compliance with multiple applicable statutes and rules.
Additionally, EPA would allow the use of certain records maintained pursuant to
the National Pollutant Discharge Elimination System (NPDES) program as well as
usual and customary business records to be used in lieu of records mandated by the
SPCC requirements. These records may include inspection records for aboveground
storage tanks and diked areas prior to drainage.
In addition to coordinating SPCC requirements with other regulatory requirements,
EPA also proposes to reduce the amount of information an owner or operator must
report pursuant to a spill described in §112.4. The proposed rule would extend the
period in which SPCC Plans must be reviewed and evaluated from three to five
years.
Amendments to the FRP regulations are also proposed in the December 2, 1997
Federal Register . The proposal clarifies the regulatory language in §112.20(h) to
state that the ICP format may be acceptable as an FRP if appropriately cross-
referenced. Also, EPA proposes to provide a new method to calculate facility storage
capacity for facilities with tanks holding mixtures of process water/wastewater and
oil. If a tank has such a mixture with 10% or less of oil, the owner or operator
would only have to count the percentage of oil in the mixture towards the facility's
storage capacity. EPA anticipates that as many as 250 facilities may no longer be
subject to the FRP regulations as a result of this provision.
The two proposed rules, as well as some proposed SPCC changes from the February
17, 1993 FRP proposed rule, will be finalized at the same time.
The information in this document is not by any means a complete representation ot EPA's regulations or policies,
but is an introduction used for Hotline training purposes
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