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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

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

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?

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: Gregory.W.Buie@uscg.milWeb: 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?