Begich proposing new oil spill legislation
Sen. Mark Begich announced June 10 that he is preparing a package of new oil spill legislation for introduction to the U.S. Congress.
“As the tragedy in the Gulf continues, it’s clear we need to significantly increase our nation’s ability to prevent and respond to oil spills,” Begich said. “From the testimony in the Commerce Committee, it’s sadly apparent the industry was caught flat-footed in their ability to respond to this disaster.”
The legislation would require companies, such as BP, with outstanding liabilities from an oil spill to deposit funds into an escrow account that would then be used to meet damage claims resulting from the spill. The current company liability of $75 million for a single spill would be raised to $200 million, but there would be no liability cap for deepwater wells. And there would be a requirement for substantial liability bonding prior to any exploration or development drilling.
The bill proposes up to $50 million per year in funding for Arctic oil spill prevention and response research by federal agencies in cooperation with state, local and private-sector research programs. A one-cent-per-barrel increase in the levy on domestically produced oil and a three-cent-per-barrel increase on the levy for imported oil would boost funding for the Oil Spill Liability Trust Fund, with $75 million from the fund going annually into oil spill prevention and response research, technology and infrastructure.
And the bill would authorize the creation of industry-funded regional citizens’ advisory commissions in areas of offshore development to enable greater citizen involvement in oil development decisions; oil spill contingency planning; and environmental monitoring.
—Alan Bailey
|