National Pollution Funds Center and the Oil Spill Liability Trust Fund
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Transcript of National Pollution Funds Center and the Oil Spill Liability Trust Fund
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National Pollution Funds Center
and the Oil Spill Liability
Trust FundPresentation for
Region 8 Regional Response Team
Golden, Colorado
December 9, 2009
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What Are Our Goals Today?
Role of the National Pollution Funds Center
Overview of the OSLTF OSLTF Threshold Issues Procedures for Accessing the
Fund Funding for Removal Activities
vs. NRDA Activities vs. Claims FOSC Interface w/ NPFC Sector and Region Issues Claims and the FOSC
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Major Missions of the NPFC Administer the Oil Spill Liability Trust Fund (OSLTF)
Provide Funding for Oil Removal Activities and the Initiation of Natural Resource Damage Assessments (NRDA) Related to Oil Discharges
Pay Claims for Loss and Damage from Oil Discharges
Recover Costs from Responsible Parties
Administer the Certificate of Financial Responsibility (COFR) Program
CERCLA Funding Manager for the Coast Guard
Stafford Act ESF-10 Funding Manager for the Coast Guard
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NPFC Case Teams
IXTEAM III
REGION IX
VIII
D13
TEAM III
D11
D17
REGION X
D14
VII
TEAM I
D8
VITEAM IID7
D5IV
REGION II
D9
V
III
TEAM IV DI
II
Illustrating CG Districts and EPA Regions
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Primary Fund Sources
OSLTF is Replenished From: Eight Cents a Barrel Tax on Domestic and
Imported Oil through 2016
Nine Cents a Barrel Tax for 2017 Investment
Interest on the Fund’s Principal
Costs Recovered from Responsible Parties
Penalties from Responsible Parties
Transfers from Other Funds
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Two+ Billion Dollar Fund
Principal Fund
Emergency
Fund
Appropriations by CongressClaims
Tax collections, recoveries, fines, penalties, interest
State Access
NRDA “Initiation”
Removal Actions
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“Best Response”
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“Best Response”Key Business Drivers Critical Success Factors
Human Heath and Safety No spill related public injuries, illness, death. No response worker injuries, illness, death
The Natural Environment Source Discharge Minimized Spill Effectively Contained/Controlled Sensitive Areas Protected Resource Damage Minimized
The Economy Economic Impact Minimized Public Communication Accurate Timely Information
Positive Media Coverage of Response Positive Public Perception
Stakeholder Support and Services Minimize Impact to Stakeholders Stakeholders Well Informed Positive Meetings with Stakeholders Prompt Handling of Damage Claims
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Four Phases of Response Operations
Notification & Discovery
$ Assessment & Initial Action
$ Containment & Countermeasures(a.k.a. Removal Activities)
$ Documentation & Cost Recovery
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Threshold Issues
Is the substance oil?
Is there a substantial threat of a discharge of oil?
Is the discharge or threat of discharge into navigable waters?
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Substantial Threat
Complex assessment by FOSC
OSLTF may be used FOSC has sole
authority FOSC determines
end of threat Significant funding
and liability implications
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Substantial Threat?
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Substantial Threat?
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Substantial Threat?
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Substantial Threat?
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Substantial Threat?
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$500K max for CG FOSCs
$50K max for EPA FOSCs
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Show Me the Money: Accessing the Fund
FOSCs use CANAPS Estimating Ceiling Direct OSLTF Charges CG Personnel &
Equipment Billable “Level of Effort”
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Show Me the Money: Funding Mechanisms
Pollution Removal Funding Authorization (PRFA)
Military Interdepartmental Purchase Request (MIPR)
Initiate IAG – NRDA Activities, not removal
Contracts Uncompensated Removal
Cost Claims
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PRFA Uses PRFA – Incident Management PRFA – Removal (Agency or using Contractors) PRFA – Wildlife Branch & Environmental Unit PRFA – ESA Section 7 In Most Coastal States
SOSC agencies Counties/Cities DOI - FWS/NPS/MMS/USGS DOI – OEPC/BLM/BuRec NOAA
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Stafford Act ESF-10 – Mission Assignment
Issued by FEMA or sub-tasked by EPA
District accepts MA NPFC then issues DPN Responding unit tracks
costs NPFC seeks cost
reimbursement
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NPFC – Sector/Region Interface Use of the Fund CANAPS OSLTF/CERFCLA COFR info & issues Routine Response Issues Contracting Interface Biofuels
Ethanol blends Biodiesel
Volunteers Vessel destruction Claims NRD
Where is Greg Buie
when I need him?
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NPFC – Sector, District, and Region Interface
RRT issues Legal issues Training Exercises Disaster funding NSSEs Audit$
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NPFC - Sector Interface Use of the Fund CANAPS OSLTF/CERFCLA Routine Response Issues Contracting Interface RRT issues Vessel destruction Legal issues Training Exercises Disaster funding NSSEs Audits
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Sector/Region - NPFC Issues
Political Climate State and Local Budgets Policy Initiatives, e.g.
ACPs Volunteers Oil Characterization Rapanos
Legislative Initiatives, e.g. Limits of Liability Appropriations Local Concerns
“I want two scalps…”
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Fishing Vessels Derelict Vessels F/V HERON
OSLTF $750K Too large for WA to handle
Sector/District - NPFC Issues
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OPA 90 Claims
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Claims and the FOSC
Removal Cost Claims Process
Why should the FOSC care?
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Claims can be Submitted for:
Natural Resource Damages Damages to Real or
Personal Property Loss of Profits and
Earning Capacity Loss of Government
Revenues Increased Costs of Public Services Loss of Subsistence Use of Natural Resources
Uncompensated Removal Costs
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Claims cannot be submitted for:
Personal injury, including loss of income solely from personal injury
Punitive damages
Pain and suffering
Legal costs
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Natural Resource Damage Claims
Submitted by Federal Trustees
For assessing and restoring injured natural resources
Received 4-5 years after spill response complete
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RP Claims
Limit of liability Guarantor claims
because of RP’s actions
Act of war
Act of God
Sole fault of a third party
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Greg BuieCase Management Division
Western States and PacificRegional Manager
Desk: (202) 493-6729Fax: (202) 493-6896Mobile: (202) 494-9091E-mail: [email protected]: http://npfc.uscg.mil
NATIONAL POLLUTION FUNDS CENTERATTN GREG BUIEUS COAST GUARD STOP 71004200 WILSON BLVD STE 1000ARLINGTON VA 20598-7100
Where is Greg Buie
when I need him?