Bill would boost oil spill liability fund

Alaska’s senators on May 5 introduced federal legislation to greatly increase the amount of money in the Oil Spill Liability Trust Fund.

The two-page bill, S. 3309, is part of what could be a flurry of legislation in the wake of the Deepwater Horizon rig sinking and spill in the Gulf of Mexico.

Sen. Lisa Murkowski, a Republican, and Sen. Mark Begich, a Democrat, said their bill would increase the fund to $10 billion by immediately raising the fee the oil industry pays from 8 cents per barrel to 9 cents.

The fee increase would bring in up to $612 million annually, according to a joint press release from the senators.

Nothing in the bill would limit the liability of oil companies or other responsible parties, the press release said.

“The liability fund provides a critical, industry-funded source of compensation that’s immediately available to address spill-related impacts,” Murkowski said. “It’s now clear that we need to increase the overall size of the fund to ensure that it’s available in the unlikely event that there’s more than one accident at a time.”

“There’s no question we need more resources for oil spill research and prevention. This bill is a solid first step toward that goal,” Begich said. “Alaska has historically led the nation in developing new technologies that allow us to develop oil and gas responsibly, so we need build on that expertise.”

Congress created the Oil Spill Liability Trust Fund in 1986, but didn’t authorize use of the money until after the Exxon Valdez tanker spill off Alaska in 1989.

The U.S. Coast Guard administers the fund, which currently contains $1.6 billion, the press release from the Alaska senators said.

The fund was expected to be worth about $3.5 billion by 2017, but because of an anticipated payout for cleanup and economic losses related to Deepwater Horizon, “it’s unclear how much the fund will be depleted,” according to the release.

The fund can pay for spill cleanup, property damage and loss of income in cases where the responsible party can’t or won’t pay. Such payments don’t let the responsible party off the hook in terms of lawsuits or reimbursing the fund.

A Coast Guard website, www.uscg.mil/npfc/claims, says BP is now accepting claims for the Gulf spill and gives an 800 number.

The fund also can pay for research and development.

—Wesley Loy