Sec. 526. Evidence of financial responsibility for offshore facilities
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/bill/115/hr/4426/ih/section-526A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1016 of the Oil Pollution Act of 1990 ( 33 U.S.C. 2716 ) is amended— in subsection (c)(1)— in subparagraph (B), by striking subparagraph
(A)is and all that follows through the period at the end and inserting subparagraph
(A)is $300,000,000. ; and by striking subparagraph
(C)and inserting the following: If the President determines that an amount of financial responsibility for a responsible party that is less than the amount required by subparagraph
(B)is justified based on the criteria established under clause (ii), the evidence of financial responsibility required shall be for an amount prescribed under such clause by the President. In no case shall the evidence of financial responsibility required under this section be less than— $105,000,000 for an offshore facility located seaward of the seaward boundary of a State; or $30,000,000 for an offshore facility located landward of the seaward boundary of a State. The President shall prescribe the amount of financial responsibility required under clause (i)(I) based on the following: The market capacity of the insurance industry to issue such instruments. The operational risk of a discharge and the likely effects of that discharge on the environment and the region. The quantity and location of the oil and gas that is explored for, drilled for, produced by, or transported by the responsible party. The asset value of the owner of the offshore facility, including the combined asset value of all partners that own the facility. The cost of all removal costs and damages for which the responsible party may be liable under this Act based on a worst-case-scenario. The safety history of the owner of the offshore facility. Any other factors that the President considers appropriate. Not later than 3 years after the date of enactment of the Sustainable Energy Development Reform Act , and at least once every 3 years thereafter, the President shall review the levels of financial responsibility specified in this subsection and the limit on liability specified in subsection (f)(4) and may by regulation revise such levels and limit upward to the levels and limit that the President determines are justified. Upon completion of a review specified in subclause (I), the President shall notify Congress as to whether the President will revise the levels of financial responsibility and limit on liability referred to in subclause
(I)and the factors used in making such determination. Not less frequently than every 3 years, the President shall review the amount of financial responsibility required of a responsible party under this subsection and revise that amount, in accordance with this subsection, as necessary based on the relative operational, environmental, and other risks posed by the quantity, quality, or location of oil that is explored for, drilled for, produced by, or transported by the responsible party at the time of the review. ; in subsection
(e)by striking self-insurer, and inserting self-insurer, participation in cooperative arrangements such as pooling or joint insurance, ; and in subsection (f)— in paragraph
(1)by striking Subject and inserting Except as provided in paragraph
(4)and subject ; and by adding at the end the following: The maximum liability of a guarantor of an offshore facility under this subsection is $300,000,000. .
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Sec. 526
Evidence of financial responsibility for offshore facilities
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