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National Pollution Funds Center and the Oil Spill Liability Trust Fund

National Pollution Funds Center and the Oil Spill Liability Trust Fund. Presentation for Region 8 Regional Response Team Golden, Colorado December 9, 2009. What Are Our Goals Today?. Role of the National Pollution Funds Center Overview of the OSLTF OSLTF Threshold Issues

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National Pollution Funds Center and the Oil Spill Liability Trust Fund

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  1. National Pollution Funds Center and the Oil Spill Liability Trust Fund Presentation for Region 8 Regional Response Team Golden, Colorado December 9, 2009

  2. 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

  3. 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

  4. VIII TEAM IV DI D13 V II D9 VII III D11 TEAM III D5 REGION X VI IV TEAM II D7 D8 D17 REGION II TEAM I D14 NPFC Case Teams Illustrating CG Districts and EPA Regions TEAM III IX REGION IX

  5. 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

  6. Two+ Billion Dollar Fund • Appropriations by Congress • Claims EmergencyFund Principal Fund • State Access • NRDA “Initiation” • Removal Actions • Tax collections, recoveries, fines, penalties, interest

  7. “Best Response”

  8. “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

  9. Four Phases of Response Operations • Notification & Discovery • Assessment & Initial Action • Containment & Countermeasures(a.k.a. Removal Activities) • Documentation & Cost Recovery

  10. 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?

  11. Substantial Threat • Complex assessment by FOSC • OSLTF may be used • FOSC has sole authority • FOSC determines end of threat • Significant funding and liability implications

  12. Substantial Threat?

  13. Substantial Threat?

  14. Substantial Threat?

  15. Substantial Threat?

  16. Substantial Threat?

  17. $500K max for CG FOSCs $50K max for EPA FOSCs

  18. Show Me the Money: Accessing the Fund • FOSCs use CANAPS • Estimating Ceiling • Direct OSLTF Charges • CG Personnel & Equipment • Billable • “Level of Effort”

  19. 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

  20. 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

  21. 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

  22. NPFC – Sector/Region Interface Where is Greg Buie when I need him? • Use of the Fund • CANAPS • OSLTF/CERFCLA • COFR info & issues • Routine Response Issues • Contracting Interface • Biofuels • Ethanol blends • Biodiesel • Volunteers • Vessel destruction • Claims • NRD

  23. NPFC – Sector, District, and Region Interface • RRT issues • Legal issues • Training • Exercises • Disaster funding • NSSEs • Audit$

  24. 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

  25. 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…”

  26. Sector/District - NPFC Issues • Fishing Vessels • Derelict Vessels • F/V HERON • OSLTF $750K • Too large for WA to handle

  27. OPA 90 Claims

  28. Claims and the FOSC • Removal Cost Claims Process • Why should the FOSC care?

  29. Claims can be Submitted for: • Uncompensated Removal Costs • 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

  30. Claims cannot be submitted for: • Personal injury, including loss of income solely from personal injury • Punitive damages • Pain and suffering • Legal costs

  31. Natural Resource Damage Claims • Submitted by Federal Trustees • For assessing and restoring injured natural resources • Received 4-5 years after spill response complete

  32. RP Claims • Act of war • Act of God • Sole fault of a third party • Limit of liability • Guarantor claims because of RP’s actions

  33. Where is Greg Buie when I need him? Greg Buie Case Management DivisionWestern States and PacificRegional Manager NATIONAL POLLUTION FUNDS CENTER ATTN GREG BUIE US COAST GUARD STOP 7100 4200 WILSON BLVD STE 1000 ARLINGTON VA 20598-7100 Desk: (202) 493-6729Fax: (202) 493-6896Mobile: (202) 494-9091E-mail: Gregory.W.Buie@uscg.milWeb: http://npfc.uscg.mil

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