CandleFocus Glossary Editor
The core of the Act establishes liability for discharges of oil as well as preventive measures meant to combat their occurrence. The OPA created a new fund, the Oil Spill Liability Trust Fund. This trust fund is funded through a levy on domestic and imported oil, of two and five cent per barrel respectively. Also important to note is that the Oil Spill Liability Trust Fund has no annual recipient ceiling, meaning that the fund can last indefinitely unless it is legislatively depleted.
The OPA also establishes a strict liability scheme for responsible parties in the event of a spill. This scheme is Absolute Liability with no restrictions as to caps on the liability’s amount. Additionally, the Act puts in place a “Responsible Party Cleanup” system which requires responsible parties to respond in instances of spills and make immediate cleanup attempts, regardless of fault.
The OPA also specifies trustees in charge of natural resources compensation. These trustees are charged with determining if a spill has caused actual harm to natural resources, assessing the damages and releasing liabilities to those affected. Trustee compensation comes from the Oil Spill Liability Trust Fund and is subject to certain ceilings in order to prevent overpayment.
In conclusion, the Oil Pollution Act of 1990 is a significant piece of environmental legislation. It provides a federal framework to prevent oil spills and fund immediate cleanup efforts. Furthermore, it established a Liability Trust Fund and strict liability scheme, as well as trustees in charge of natural resource damages. The OPA is vital in helping us prevent future oil spills and protecting marine life as well as coastal communities.
The OPA also establishes a strict liability scheme for responsible parties in the event of a spill. This scheme is Absolute Liability with no restrictions as to caps on the liability’s amount. Additionally, the Act puts in place a “Responsible Party Cleanup” system which requires responsible parties to respond in instances of spills and make immediate cleanup attempts, regardless of fault.
The OPA also specifies trustees in charge of natural resources compensation. These trustees are charged with determining if a spill has caused actual harm to natural resources, assessing the damages and releasing liabilities to those affected. Trustee compensation comes from the Oil Spill Liability Trust Fund and is subject to certain ceilings in order to prevent overpayment.
In conclusion, the Oil Pollution Act of 1990 is a significant piece of environmental legislation. It provides a federal framework to prevent oil spills and fund immediate cleanup efforts. Furthermore, it established a Liability Trust Fund and strict liability scheme, as well as trustees in charge of natural resource damages. The OPA is vital in helping us prevent future oil spills and protecting marine life as well as coastal communities.