House Report 109-137 - DELAWARE RIVER PROTECTION ACT OF 2005

[House Report 109-137]
[From the U.S. Government Publishing Office]

109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-137

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DELAWARE RIVER PROTECTION ACT OF 2005

_______

June 16, 2005.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following

R E P O R T

[To accompany H.R. 1412]

[Including cost estimate of the Congressional Budget Office]

The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 1412) to amend the Ports and
Waterways Safety Act to require notification of the Coast Guard
regarding obstructions to navigation, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Delaware River Protection Act of
2005''.

SEC. 2. REQUIREMENT TO NOTIFY COAST GUARD OF RELEASE OF OBJECTS INTO
THE NAVIGABLE WATERS OF THE UNITED STATES.

The Ports and Waterways Safety Act (33 U.S.C. 1221 et seq.) is
amended by adding at the end the following:

``SEC. 15. REQUIREMENT TO NOTIFY COAST GUARD OF RELEASE OF OBJECTS INTO
THE NAVIGABLE WATERS OF THE UNITED STATES.

``(a) Requirement.--As soon as a person has knowledge of any release
from a vessel or facility into the navigable waters of the United
States of any object that creates an obstruction prohibited under
section 10 of the Act of March 3, 1899, popularly known as the Rivers
and Harbors Appropriations Act of 1899 (chapter 425; 33 U.S.C. 403),
such person shall notify the Secretary and the Secretary of the Army of
such release.
``(b) Restriction on Use of Notification.--Any notification provided
by an individual in accordance with subsection (a) shall not be used
against such individual in any criminal case, except a prosecution for
perjury or for giving a false statement.''.

SEC. 3. LIMITS ON LIABILITY.

(a) Adjustment of Liability Limits.--
(1) Tank vessels.--Section 1004(a)(1) of the Oil Pollution
Act of 1990 (33 U.S.C. 2704(a)(1)) is amended--
(A) by redesignating subparagraph (B) as subparagraph
(C);
(B) by striking subparagraph (A) and inserting the
following:
``(A) with respect to a single-hull vessel, including
a single-hull vessel fitted with double sides only or a
double bottom only--
``(i) $1,550 per gross ton for an incident
that occurs in 2005;
``(ii) $1,900 per gross ton for an incident
that occurs in 2006; or
``(iii) $2,250 per gross ton for an incident
that occurs in 2007 or in any year thereafter;
or
``(B) with respect to a double-hull vessel (other
than any vessel referred to in subparagraph (A))--
``(i) $1,350 per gross ton for an incident
that occurs in 2005;
``(ii) $1,500 per gross ton for an incident
that occurs in 2006; and
``(iii) $1,700 per gross ton for any incident
that occurs in 2007 or in any year thereafter;
or''; and
(C) in subparagraph (C), as redesignated by
subparagraph (A) of this paragraph--
(i) in clause (i) by striking ``$10,000,000''
and inserting ``$14,000,000''; and
(ii) in clause (ii) by striking
``$2,000,000'' and inserting ``$2,500,000''.
(2) Limitation on application.--In the case of an incident
occurring before the date of the enactment of this Act, section
1004(a)(1) of the Oil Pollution Act of 1990 (33 U.S.C.
2704(a)(1)) shall apply as in effect immediately before the
effective date of this subsection.
(b) Adjustment to Reflect Consumer Price Index.--Section 1004(d)(4)
of the Oil Pollution Act of 1990 (33 U.S.C. 2704(d)(4)) is amended to
read as follows:
``(4) Adjustment to reflect consumer price index.--The
President shall, by regulations issued no later than 3 years
after the date of the enactment of the Delaware River
Protection Act of 2005 and no less than every 3 years
thereafter, adjust the limits on liability specified in
subsection (a) to reflect significant increases in the Consumer
Price Index.''.

SEC. 4. REQUIREMENT TO UPDATE PHILADELPHIA AREA CONTINGENCY PLAN.

The Philadelphia Area Committee established under section 311(j)(4)
of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)(4))
shall, by not later than 12 months after the date of the enactment of
this Act and not less than annually thereafter, review and revise the
Philadelphia Area Contingency Plan to include available data and
biological information on environmentally sensitive areas of the
Delaware River and Delaware Bay that has been collected by Federal and
State surveys.

SEC. 5. SUBMERGED OIL REMOVAL.

(a) Amendments.--Title VII of the Oil Pollution Act of 1990 is
amended--
(1) in section 7001(c)(4)(B) (33 U.S.C. 2761(c)(4)(B)) by
striking ``RIVERA,'' and inserting ``RIVERA and the T/V ATHOS
I;''; and
(2) by adding at the end the following:

``SEC. 7002. SUBMERGED OIL PROGRAM.

``(a) Program.--
``(1) Establishment.--The Undersecretary of Commerce for
Oceans and Atmosphere, in conjunction with the Commandant of
the Coast Guard, shall establish a program to detect, monitor,
and evaluate the environmental effects of submerged oil. Such
program shall include the following elements:
``(A) The development of methods to remove, disperse
or otherwise diminish the persistence of submerged oil.
``(B) The development of improved models and
capacities for predicting the environmental fate,
transport, and effects of submerged oil.
``(C) The development of techniques to detect and
monitor submerged oil.
``(2) Report.--The Secretary of Commerce shall, no later than
3 years after the date of the enactment of the Delaware River
Protection Act of 2005, submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation and the Committee on Environment and Public
Works of the Senate a report on the activities carried out
under this subsection and activities proposed to be carried out
under this subsection.
``(3) Funding.--There is authorized to be appropriated to the
Secretary of Commerce $1,000,000 for each of fiscal years 2006
through 2010 to carry out this subsection.
``(b) Demonstration Project.--
``(1) Removal of submerged oil.--The Commandant of the Coast
Guard, in conjunction with the Undersecretary of Commerce for
Oceans and Atmosphere, shall conduct a demonstration project
for the purpose of developing and demonstrating technologies
and management practices to remove submerged oil from the
Delaware River and other navigable waters.
``(2) Funding.--There is authorized to be appropriated to the
Commandant of the Coast Guard $2,000,000 for each of fiscal
years 2006 through 2010 to carry out this subsection.''.
(b) Clerical Amendment.--The table of sections in section 2 of such
Act is amended by inserting after the item relating to section 7001 the
following:

``Sec. 7002. Submerged oil program.''.

SEC. 6. DELAWARE RIVER AND BAY OIL SPILL ADVISORY COMMITTEE.

(a) Establishment.--There is established the Delaware River and Bay
Oil Spill Advisory Committee (in this section referred to as the
``Committee'').
(b) Functions.--
(1) In general.--The Committee shall, by not later than 1
year after the date the Commandant of the Coast Guard (in this
section referred to as the ``Commandant'') completes
appointment of the members of the Committee, make
recommendations to the Commandant, the Committee on
Transportation and Infrastructure of the House of
Representatives, and the Committee on Commerce, Science, and
Transportation of the Senate on methods to improve the
prevention of and response to future oil spills in the Delaware
River and Delaware Bay.
(2) Meetings.--The Committee--
(A) shall hold its first meeting not later than 60
days after the completion of the appointment of the
members of the Committee; and
(B) shall meet thereafter at the call of the
Chairman.
(c) Membership.--The Committee shall consist of 15 members who have
particular expertise, knowledge, and experience regarding the
transportation, equipment, and techniques that are used to ship cargo
and to navigate vessels in the Delaware River and Delaware Bay, as
follows:
(1) Three members who are employed by port authorities that
oversee operations on the Delaware River or have been selected
to represent these entities, of whom--
(A) one member must be an employee or representative
of the Port of Wilmington;
(B) one member must be an employee or representative
of the South Jersey Port Corporation; and
(C) one member must be an employee or representative
of the Philadelphia Regional Port Authority.
(2) Two members who represent organizations that operate tugs
or barges that utilize the port facilities on the Delaware
River and Delaware Bay.
(3) Two members who represent shipping companies that
transport cargo by vessel from ports on the Delaware River and
Delaware Bay.
(4) Two members who represent operators of oil refineries on
the Delaware River and Delaware Bay.
(5) Two members who represent environmental and conservation
interests.
(6) Two members who represent State-licensed pilots who work
on the Delaware River and Delaware Bay.
(7) One member who represents labor organizations that load
and unload cargo at ports on the Delaware River and Delaware
Bay.
(8) One member who represents the general public.
(d) Appointment of Members.--The Commandant shall appoint the members
of the Committee, after soliciting nominations by notice published in
the Federal Register.
(e) Chairman and Vice Chairman.--The Committee shall elect, by
majority vote at its first meeting, one of the members of the Committee
as the Chairman and one of the members as the Vice Chairman. The Vice
Chairman shall act as Chairman in the absence of or incapacity of the
Chairman, or in the event of vacancy in the Office of the Chairman.
(f) Pay and Expenses.--
(1) Prohibition on pay.--Members of the Committee who are not
officers or employees of the United States shall serve without
pay. Members of the Committee who are officers or employees of
the United States shall receive no additional pay on account of
their service on the Committee.
(2) Expenses.--While away from their homes or regular places
of business, members of the Committee may be allowed travel
expenses, including per diem, in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code.
(g) Termination.--The Committee shall terminate one year after the
completion of the appointment of the members of the Committee.

SEC. 7. MARITIME FIRE AND SAFETY ACTIVITIES.

The Maritime Transportation Security Act of 2002 (Public Law 107-
295) is amended--
(1) in section 407--
(A) in the heading by striking ``LOWER COLUMBIA
RIVER''; and
(B) by striking ``$987,400'' and inserting
``$1,500,000''; and
(2) in the table of contents in section 1(b) by striking the
item relating to section 407 and inserting the following:

``Sec. 407. Maritime fire and safety activities.''.

Purpose of the Legislation

H.R. 1412, the Delaware River Protection Act, makes several
amendments to current law to improve the Federal government's
capability to prevent and respond to future oil spills in the
Delaware River and other waters of the United States including
the territorial sea.

Background and Need for the Legislation

On Friday, November 26, 2004, the T/V ATHOS I, a 750-foot,
single-hull tank vessel, struck a submerged object while being
maneuvered to a berth on the Delaware River near Paulsboro, New
Jersey. The grounding caused the vessel to lose power and
resulted in a release of heavy crude oil from the vessel's oil
storage tanks. An investigation of the river bottom found a
large section of iron pump housing and several other objects
that were partially submerged in river sediments in the area of
the vessel's grounding. The existence of the bottom debris was
unknown to the maritime community and was not included on any
navigational chart or in any notice to mariners.
The Coast Guard has estimated that total cleanup costs and
natural resources damages resulting from the grounding of the
ATHOS I could cost more than $200 million. Under current
liability limits, the owners of the vessel are potentially
responsible for costs of up to approximately $45 million.
Despite requirements in current law, oil spill liability limits
have not been adjusted to reflect inflation since the passage
of the Oil Pollution Act of 1990.
As part of the Service's Maritime Safety mission, the Coast
Guard is designated as the lead Federal agency in responding to
oil spills in coastal and marine waters. Under the Oil
Pollution Act of 1990, the Coast Guard established specialized
district response groups to respond to oil spills as quickly as
possible. The Act requires the creation of Area Committees
throughout the nation to develop and implement Area Contingency
Plans for responding to oil spills in a particular location and
requires vessel and facility operators to develop detailed
response plans for incidents involving those vessels or
facilities.
The Coast Guard, in conjunction with Federal, State, local
and private sector partners, followed the OPA requirements and
the local implementation plan in responding to the ATHOS I
spill. However, the response efforts highlighted some
shortfalls in the law and in Federal regulations regarding the
declaration of a release of an object that may create an
obstruction to navigation in U.S. waterways, the content of
information included in Area Contingency Plans, and the focus
of the Federal oil spill research program established under the
Oil Pollution Act of 1990. H.R. 1412 includes provisions that
address these shortfalls.

Summary of the Legislation

H.R. 1412 makes several amendments to current law to
improve the Federal government's capability to prevent and
respond to future oil spills in the Delaware River and other
navigable waters of the United States.
Section 1 states that the legislation may be referred to as
the ``Delaware River Protection Act of 2005''.
Section 2 establishes a requirement to notify the Coast
Guard of a release of an object from a vessel or facility that
creates an obstruction to navigation. Individuals who fail to
``promptly'' notify the Coast Guard of a loss of such an object
will be subject to existing civil and criminal penalties under
the Ports and Waterways Safety Act. These penalties include a
fine of up to $25,000 per day and criminal penalties of up to
5-10 years for willful and knowing violation of the
notification requirement.
Under Subchapter C of title 33, Code of Federal
Regulations, owners of vessels that could obstruct navigation
in U.S. waters must mark and report the existence of the
obstruction. However, there is no current statutory or
regulatory requirement that an owner of an object, other than a
vessel, notify the Coast Guard after the release of such an
object into the navigable waterways of the United States.
Section 3 amends the Oil Pollution Act of 1990 (OPA) to
adjust oil spill liability limits to reflect the change in the
Consumer Price Index since the Act's passage in 1990. OPA
established liability limits for tank vessels at a level of
$1,200 per gross ton. Under OPA, liability for cleanup costs
and damages resulting from oil spills rests with a
``responsible party'' who is usually the owner or operator of a
vessel. In the event of a spill, the responsible party must pay
removal costs incurred by the government or others, and damages
to claimants who are injured by the spill. Damages may include
natural resources damages, damages to real or personal
property, damages for loss of use of a natural resource
(fishery, etc.), damages for lost revenue or profit caused by a
spill, and damages for the cost of government response
necessitated by the spill. Under OPA, the President is required
to adjust these limits every three years according to changes
in the Consumer Price Index (CPI). The Coast Guard has not made
these adjustments as required by law and currently insists that
the Service has no authority to adjust the limits as the
authority resides at the Department level. The authority was
delegated by the President first to the Department of
Transportation and was later transferred to the Department of
Homeland Security.
The provision implements these adjustments. The provision
would increase liability limits to the current CPI-adjusted
level (approximately $1,700 per gross ton) over a three year
period. The provision makes distinctions between single-hull
vessels and double-hull vessels. Liability levels for double-
hull vessels would be increased by $500 per gross ton over 3
years, while liability levels for single-hull vessels would be
increased by $1,050 per gross ton over three years. This amount
is equal to twice the adjustment (approximately $525 per gross
ton) based on the increase in the CPI from 1990-2004. The
provision also requires the President to adjust the liability
limits within three years of the enactment of the Act and every
three years thereafter.
Section 4 requires the Philadelphia Area Committee to
annually update its area contingency plan to include the most
recent environmental sensitivity data that has been collected
by State and Federal agencies. At the time of the spill in the
Delaware River, the Philadelphia Area Contingency Plan did not
include updated environmental sensitivity data that had been
collected by annual surveys conducted by the New Jersey
Department of Environmental Protection.
Under the Oil Pollution Act of 1990, the Coast Guard has
established 46 Area Committees nationwide. These committees act
as preparedness and planning bodies and are composed of
representatives from Federal, state, and local government
agencies with definitive responsibilities for each area's
environmental integrity. Each Area Committee has developed an
Area Contingency Plan and is charged with periodically updating
the Plan with information from Committee members and interested
parties to further prevent and improve response to future oil
spills in each Area.
Section 5 requires the National Oceanic and Atmospheric
Administration (NOAA), in conjunction with the Coast Guard, to
establish a submerged oil research program to research methods
to detect, monitor and remove submerged oil and improve
modeling capabilities to better predict the movement and
behavior of submerged oil. The provision also requires the
Coast Guard to carry out a demonstration project to demonstrate
technologies and processes to detect and remove submerged oil
from waterways including the Delaware River.
Title VII of the Oil Pollution Act establishes an Oil
Pollution Research and Development Program and an Interagency
Coordinating Committee on Oil Pollution Research to carry out
the Program. The program established under this section would
carry out specific research on the effects and persistence of
submerged oil in addition to the research program that is
carried out by the Committee. A large percentage of the oil
that was released from the ATHOS I was or still remains
submerged at the bottom of the river, and little work has been
done to increase capabilities to predict the persistence of or
vertical and horizontal movement of oil within the water
column.
The Committee recommends that the efforts of the research
program be focused on developing methods and technologies to
remove or diminish the persistence of submerged oil that is
currently found in the Delaware River and other U.S. waterways.
Further, the Committee recommends that the effort of the
demonstration program be concentrated on evaluating methods and
technologies of removing submerged oil of the type that was
released into the Delaware River as a result of the grounding
of the ATHOS I and under the conditions that are observed in
the area of the Delaware River that was impacted by such oil.
Section 6 establishes an advisory committee composed of
representatives from port authorities, shipping interests, oil
refineries, labor, river pilots, environmental groups and the
general public. The Committee is tasked with developing
recommendations for Congress on the prevention of and response
to future oil spills on the Delaware River and Bay. The
Committee will provide an additional outlet for interested
parties and the general public to provide information and make
recommendations to improve preparedness in the area. The
Committee's term will expire one year after the Committee's
members are appointed by the Commandant of the Coast Guard.
Section 7 amends section 407 of the Maritime Transportation
Security Act of 2002 (P.L. 107-295) to increase the authorized
funding for maritime fire and safety activities carried out by
non-profit organizations in direct cooperation with the Coast
Guard to an amount of $1.5 million.

Legislative History and Committee Consideration

H.R. 1412, the Delaware River Protection Act was introduced
by Coast Guard and Maritime Transportation Subcommittee
Chairman Frank A. LoBiondo on March 17, 2005 and is co-
sponsored by Rep. Jim Saxton (New Jersey), Rep. Rob Andrews
(New Jersey), Rep. Mike Castle (Delaware) and Rep. Allyson
Schwartz (Pennsylvania).
The bill was referred to the Committee on Transportation
and Infrastructure. The Subcommittee held a field hearing on
the Coast Guard's response to the ATHOS I oil spill in the
Delaware River in Philadelphia, Pennsylvania on January 18,
2005.
On April 27, 2005 the Subcommittee on Coast Guard and
Maritime Transportation and the Subcommittee on Water Resources
and the Environment were discharged from consideration of the
bill, and the bill was considered during a mark-up session of
the Full Committee. At this mark-up, Coast Guard and Maritime
Transportation Subcommittee Chairman, Mr. LoBiondo, offered an
amendment to strike the sections of the bill that authorized
activities of the U.S. Army Corps of Engineers and made certain
technical amendments to section 5 of the bill. The amendment
was adopted unanimously by voice vote.
H.R. 1412, as amended, was approved unanimously by voice
vote and was ordered favorably reported to the House.

Rollcall Votes

Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each rollcall
vote on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. No rollcall votes were ordered during the
consideration of H.R. 1412.

Committee Oversight Findings

With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.

Cost of Legislation

Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.

Compliance with House Rule XIII

1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
authorize funding for the submerged oil research program and
demonstration program established under section 5 and for
maritime fire and safety activities carried out by non-profit
organizations in direct cooperation with the Coast Guard.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
1412 from the Director of the Congressional Budget Office.

U.S. Congress,
Congressional Budget Office,
Washington, DC, June 15, 2005.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1412, the Delaware
River Protection Act of 2005.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Deborah
Reis (for federal costs), Sara Puro (for the state and local
impact), and Craig Cammarata (for the private-sector impact).
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.

H.R. 1412--Delaware River Protection Act of 2005

Summary: H.R. 1412 would address oil spills from tank
vessels (tankers and tanker barges) into United States waters.
The bill would amend the Oil Pollution Act of 1990 (OPA) to
raise the statutory limits on liability that owners or
operators of such vessels face when a spill occurs. The bill
also would authorize the appropriation of $16 million to the
U.S. Coast Guard and the National Oceanic and Atmospheric
Administration (NOAA) over the next five years, primarily for
activities to detect and remove submerged oil in navigable
waters. Finally, the bill would address a recent oil spill into
the Delaware River by requiring new oil spill contingency plans
for the Philadelphia area and by establishing an advisory
committee to recommend improvements in oil spill response and
prevention in the Delaware River and Bay.
CBO estimates that the higher liability limits that would
be mandated by H.R. 1412 would reduce direct spending from the
Oil Spill Liability Trust Fund (OSLTF) by $1 million in fiscal
year 2006, by $3 million in 2007, and by $4 million annually
thereafter. In addition, we estimate that carrying out the
submerged oil program and other activities required by the bill
would increase discretionary spending by $2 million in 2006 and
by $16 million over the 2006-2010 period, assuming
appropriation of the authorized amounts.
H.R. 1412 contains both intergovernmental and private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA), but CBO estimates that the cost of complying with the
mandates would be minimal and would not exceed the thresholds
established in UMRA. Those thresholds are $62 million in 2005
for intergovernmental mandates and $123 million in 2005 for
private-sector mandates, both adjusted annually for inflation.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1412 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
DIRECT SPENDING

Spending Under Current Law for Oil Spill Response and Damage
Claims \1\:
Estimated Budget Authority................................ 60 60 60 60 60 60 60 60 60 60
Estimated Outlays......................................... 60 60 60 60 60 60 60 60 60 60
Proposed Changes:
Estimated Budget Authority \2\............................ 0 0 -1 -1 -1 -1 -1 -1 -1 -1
Estimated Outlays......................................... -1 -3 -4 -4 -4 -4 -4 -4 -4 -4
Spending Under H.R. 1412 for Oil Spill Response and Damage
Claims:
Estimated Budget Authority................................ 60 60 59 59 59 59 59 59 59 59
Estimated Outlays......................................... 59 57 56 56 56 56 56 56 56 56

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Spending for Submerged Oil Program and Fire and Safety Grants:
Authorization Level....................................... 4 3 3 3 3 0 0 0 0 0
Estimated Outlays......................................... 2 4 3 3 3 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ For each year, spending under current law includes permanent budget authority of $50 million specified for oil spill response activities and an
estimated $10 million for the payment of damage claims. These amounts are used to pay the costs of spills from facilities and vessels of all types.
Budget authority for claims depends on the number and amount of payments approved and can vary significantly from year to year.
\2\ The higher liability limits specified by H.R. 1412 would reduce both response costs and claims payments. The effect on response costs would only be
reflected in outlays because budget authority for this activity is specified at $50 million a year under OPA. Any savings in response costs would thus
increase OSLTF unobligated balances available for future spills. The effect on payments of claims, in contrast, would reduce both budget authority and
outlays by about $1 million annually beginning in 2008.

Basis of estimate: For this estimate CBO assumes that H.R.
1412 will be enacted by the beginning of fiscal year 2006 and
that the amounts authorized by the legislation will be
appropriated for each year. The estimate of discretionary
outlays is based on spending patterns for similar programs.

DIRECT SPENDING

H.R. 1412 would raise existing limits on the liability of
owners or operators of tank vessels that are responsible for
oil spills into U.S. navigable waters.
Under OPA, specified liability limits determine the total
amount that a responsible party must pay to respond to an oil
spill and to compensate third parties for damages. If the costs
of a spill exceed those limits, the federal government
generally pays any remaining costs and claims from the OSLTF.
Current liability limits generally vary with the type of
vessel. For example, the liability limit for most tank barges
is $2 million per spill. The liability limit for most tankers
is the greater of $1,200 per gross ton or $10 million per
spill.
Under H.R. 1412, liability limits for tank vessels would
vary by year, type of vessel, and whether the vessel is single-
hulled or double-hulled. The liability limit for most tank
barges would increase to $2.5 million in 2006 and beyond. For
single-hulled tankers, the liability limit would increase to
the greater of $14 million per spill or $1,900 per gross ton in
2006 and $2,250 per gross ton in 2007 and beyond. For double-
hulled tankers, the liability limit would increase to the
greater of $14 million per spill or $1,500 per gross ton in
2006 and $1,700 per gross ton in 2007 and beyond. In future
years, the new limits would be increased to reflect anticipated
inflation.
The savings to the federal government associated with
raising private liability limits for tank vessels is uncertain
because significant oil spills are relatively rare; in fact,
since the implementation of OPA in 1991, only six spills from
such vessels have exceeded the existing liability limits. (In
total, those spills have accounted for about $45 million--
around 10 percent--of the roughly $490 million that has been
spent from the OSLTF through 2004.) Moreover, the cost of such
spills depends on a variety of factors besides the type and
size of a vessel--the location of a spill, for example, is an
important factor that cannot be predicted.
Assuming that the frequency and severity of future oil
spills from tanker vessels will be similar to those experienced
since OPA was implemented, CBO estimates that increasing the
existing liability limits for tanker vessels by the amounts
specified by H.R. 1412 would reduce average annual spending
from the OSLTF for spills from tank vessels from about $17
million (in 2005 dollars) to $16 million in fiscal year 2006,
$14 million in 2007, and $13 million annually thereafter.
Savings would be lower in 2006 and 2007 because the increases
in limits would be phased in over the 2006-2007 period and
because savings from spills in 2006 and 2007 would be realized
over the three- or four-year period that it typically takes to
clean up spills and pay claims. Most of the savings from the
new limits would result from reductions in the share of cleanup
and other response costs that are paid from the OSLTF.

SPENDING SUBJECT TO APPROPRIATION

H.R. 1412 would direct NOAA to establish a program to
detect submerged oil, evaluate its environmental effects, and
develop methods to remove or disperse it. In conjunction with
this program, the Coast Guard would be required to conduct a
demonstration project to develop methods of removing submerged
oil from the Delaware River and other navigable waters. For
these purposes, the bill would authorize the appropriation of
$1 million for NOAA and $2 million for the Coast Guard for each
of fiscal years 2006 through 2010. Finally, the bill would
increase the existing authorization level for Coast Guard
maritime fire and safety grants by just over $500,000. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing these provisions would cost $2 million in fiscal
year 2006 and $16 million over the 2006-2010 period.
CBO estimates that establishing and operating the Delaware
River and Bay Oil Spill Advisory Committee and updating the
Philadelphia-area contingency plan would have no significant
effect on the federal budget.
Estimated impact on State, local, and tribal governments:
H.R. 1412 contains an intergovernmental mandate as defined in
UMRA because it would require public entities, including port
authorities, to notify the Coast Guard if such an entity
released an object that might obstruct the navigable waters of
the Delaware River. According to information from industry
sources, the likelihood that a public entity would release an
obstructing object is small, and any resulting notification
would impose minimal costs on state, local, or tribal
governments. Therefore, CBO estimates that the cost of
complying with the mandate would not exceed the threshold
established in UMRA ($62 million in 2005, adjusted annually for
inflation).
Estimated impact on the private sector: H.R. 1412 would
impose private-sector mandates as defined in UMRA on certain
owners and operators of tank vessels and persons aware of an
obstruction to navigation in U.S. waters. Based on information
provided by industry and government sources, CBO expects that
the aggregate direct costs of complying with those mandates
would fall below the annual threshold established by UMRA for
private-sector mandates ($123 million in 2005, adjusted
annually for inflation).
Section 2 would require owners of objects other than
vessels to notify the Coast Guard and the U.S. Army Corps of
Engineers if those objects become obstructions to navigation in
U.S. waters. (Under current law, notification of such
obstructions is voluntary.) CBO expects that the costs to
comply with this mandate would be minimal if any.
Section 3 would increase the federal limits on liability
for tank vessels. An increase in liability for vessel owners
and operators would tend to increase their premium payments for
coverage of the greater amount. Premium payments for coverage
of liability depend on many factors including the amount of
coverage, the size of the vessel, the value of the cargo, and
the experience rating of the tanker crew. Industry experts
estimate that premium increases could vary from 10 percent to
as much as 40 percent for some owners of tank vessels to pay
for an increase in coverage. According to industry contacts,
however, a large part of the industry already carries liability
coverage above the federal limit required in the bill.
Consequently, CBO expects that the incremental cost to comply
with this mandate would not exceed UMRA's annual threshold.
Estimate prepared by: Federal Costs: Deborah Reis and
Gregory Hitz. Impact on State, Local, and Tribal Governments:
Sarah Puro. Impact on the Private Sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.

Constitutional Authority Statement

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.

Federal Mandates Statement

The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4).

Preemption Clarification

Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 1412 does not
preempt any state, local, or tribal law.

Advisory Committee Statement

No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.

Applicability to the Legislative Branch

The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act. (Public Law
104-1).

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

PORTS AND WATERWAYS SAFETY ACT

* * * * * * *

SEC. 15. REQUIREMENT TO NOTIFY COAST GUARD OF RELEASE OF OBJECTS INTO
THE NAVIGABLE WATERS OF THE UNITED STATES.

(a) Requirement.--As soon as a person has knowledge of any
release from a vessel or facility into the navigable waters of
the United States of any object that creates an obstruction
prohibited under section 10 of the Act of March 3, 1899,
popularly known as the Rivers and Harbors Appropriations Act of
1899 (chapter 425; 33 U.S.C. 403), such person shall notify the
Secretary and the Secretary of the Army of such release.
(b) Restriction on Use of Notification.--Any notification
provided by an individual in accordance with subsection (a)
shall not be used against such individual in any criminal case,
except a prosecution for perjury or for giving a false
statement.
----------

OIL POLLUTION ACT OF 1990

* * * * * * *

SEC. 2. TABLE OF CONTENTS.

The contents of this Act are as follows:

* * * * * * *

TITLE VII--OIL POLLUTION RESEARCH AND DEVELOPMENT PROGRAM

Sec. 7001. Oil pollution research and development program.
Sec. 7002. Submerged oil program.

* * * * * * *

TITLE I--OIL POLLUTION LIABILITY AND COMPENSATION

* * * * * * *

SEC. 1004. LIMITS ON LIABILITY.

(a) General Rule.--Except as otherwise provided in this
section, the total of the liability of a responsible party
under section 1002 and any removal costs incurred by, or on
behalf of, the responsible party, with respect to each incident
shall not exceed--
(1) for a tank vessel, the greater of--
[(A) $1,200 per gross ton; or]
(A) with respect to a single-hull vessel,
including a single-hull vessel fitted with
double sides only or a double bottom only--
(i) $1,550 per gross ton for an
incident that occurs in 2005;
(ii) $1,900 per gross ton for an
incident that occurs in 2006; or
(iii) $2,250 per gross ton for an
incident that occurs in 2007 or in any
year thereafter; or
(B) with respect to a double-hull vessel
(other than any vessel referred to in
subparagraph (A))--
(i) $1,350 per gross ton for an
incident that occurs in 2005;
(ii) $1,500 per gross ton for an
incident that occurs in 2006; and
(iii) $1,700 per gross ton for any
incident that occurs in 2007 or in any
year thereafter; or
[(B)] (C)(i) in the case of a vessel greater
than 3,000 gross tons, [$10,000,000]
$14,000,000; or
(ii) in the case of a vessel of 3,000 gross
tons or less, [$2,000,000] $2,500,000;

* * * * * * *

(d) Adjusting Limits of Liability.--
(1) * * *

* * * * * * *

[(4) Adjustment to reflect consumer price index.--The
President shall, by regulations issued not less often
than every 3 years, adjust the limits of liability
specified in subsection (a) to reflect significant
increases in the Consumer Price Index.]
(4) Adjustment to reflect consumer price index.--The
President shall, by regulations issued no later than 3
years after the date of the enactment of the Delaware
River Protection Act of 2005 and no less than every 3
years thereafter, adjust the limits on liability
specified in subsection (a) to reflect significant
increases in the Consumer Price Index.

* * * * * * *

TITLE VII--OIL POLLUTION RESEARCH AND DEVELOPMENT PROGRAM

SEC. 7001. OIL POLLUTION RESEARCH AND DEVELOPMENT PROGRAM.

(a) * * *

* * * * * * *

(4) Oil pollution effects research.--(A) * * *
(B) The Department of Commerce in consultation with
the Environmental Protection Agency shall monitor and
scientifically evaluate the long-term environmental
effects of oil discharges if--
(i) * * *

* * * * * * *

Areas for study may include the following sites where
oil discharges have occurred: the New York/New Jersey
Harbor area, where oil was discharged by an Exxon
underwater pipeline, the T/B CIBRO SAVANNAH, and the M/
V BT NAUTILUS; Narragansett Bay where oil was
discharged by the WORLD PRODIGY; the Houston Ship
Channel where oil was discharged by the RACHEL B; the
Delaware River, where oil was discharged by the
PRESIDENTE [, RIVERA] RIVERA and the T/V ATHOS I; and
Huntington Beach, California, where oil was discharged
by the AMERICAN TRADER.

* * * * * * *

SEC. 7002. SUBMERGED OIL PROGRAM.

(a) Program.--
(1) Establishment.--The Undersecretary of Commerce
for Oceans and Atmosphere, in conjunction with the
Commandant of the Coast Guard, shall establish a
program to detect, monitor, and evaluate the
environmental effects of submerged oil. Such program
shall include the following elements:
(A) The development of methods to remove,
disperse or otherwise diminish the persistence
of submerged oil.
(B) The development of improved models and
capacities for predicting the environmental
fate, transport, and effects of submerged oil.
(C) The development of techniques to detect
and monitor submerged oil.
(2) Report.--The Secretary of Commerce shall, no
later than 3 years after the date of the enactment of
the Delaware River Protection Act of 2005, submit to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Commerce, Science, and Transportation and the Committee
on Environment and Public Works of the Senate a report
on the activities carried out under this subsection and
activities proposed to be carried out under this
subsection.
(3) Funding.--There is authorized to be appropriated
to the Secretary of Commerce $1,000,000 for each of
fiscal years 2006 through 2010 to carry out this
subsection.
(b) Demonstration Project.--
(1) Removal of submerged oil.--The Commandant of the
Coast Guard, in conjunction with the Undersecretary of
Commerce for Oceans and Atmosphere, shall conduct a
demonstration project for the purpose of developing and
demonstrating technologies and management practices to
remove submerged oil from the Delaware River and other
navigable waters.
(2) Funding.--There is authorized to be appropriated
to the Commandant of the Coast Guard $2,000,000 for
each of fiscal years 2006 through 2010 to carry out
this subsection.

* * * * * * *

----------

MARITIME TRANSPORTATION SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
* * * * * * *

TITLE IV--OMNIBUS MARITIME IMPROVEMENTS

Sec. 401. Short title.
* * * * * * *
[Sec. 407. Lower Columbia River maritime fire and safety activities.]
Sec. 407. Maritime fire and safety activities.

* * * * * * *

TITLE IV--OMNIBUS MARITIME IMPROVEMENTS

* * * * * * *

SEC. 407. [LOWER COLUMBIA RIVER] MARITIME FIRE AND SAFETY ACTIVITIES.

There is authorized to be appropriated to the Secretary of
the department in which the Coast Guard is operating [$987,400]
$1,500,000 for fire, oil, and toxic spill response
communications, training, equipment, and program administration
activities conducted by nonprofit organizations that act in
cooperation with the Coast Guard, to remain available until
expended. Organizations receiving appropriated funds must have
a multiyear record of spill and marine fire response in Federal
navigable waterways. Federal funds shall not exceed 25 percent
of such an organization's total budget.

* * * * * * *