Internal Revenue Code:Sec. 9509. Oil Spill Liability Trust Fund
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle I - Trust Fund Code
CHAPTER 98 - TRUST FUND CODE
Subchapter A - Establishment of Trust Funds
Statute
Sec. 9509. Oil Spill Liability Trust Fund
(a) Creation of Trust Fund
There is established in the Treasury of the United States a trust
fund to be known as the ''Oil Spill Liability Trust Fund'',
consisting of such amounts as may be appropriated or credited to
such Trust Fund as provided in this section or section 9602(b).
(b) Transfers to Trust Fund
There are hereby appropriated to the Oil Spill Liability Trust
Fund amounts equivalent to -
(1) taxes received in the Treasury under section 4611 (relating
to environmental tax on petroleum) to the extent attributable to
the Oil Spill Liability Trust Fund financing rate under section
4611(c),
(2) amounts recovered under the Oil Pollution Act of 1990 for
damages to natural resources which are required to be deposited
in the Fund under section 1006(f) of such Act,
(3) amounts recovered by such Trust Fund under section 1015 of
such Act,
(4) amounts required to be transferred by such Act from the
revolving fund established under section 311(k) of the Federal
Water Pollution Control Act,
(5) amounts required to be transferred by the Oil Pollution Act
of 1990 from the Deepwater Port Liability Fund established under
section 18(f) of the Deepwater Port Act of 1974,
(6) amounts required to be transferred by the Oil Pollution Act
of 1990 from the Offshore Oil Pollution Compensation Fund
established under section 302 of the Outer Continental Shelf
Lands Act Amendments of 1978,
(7) amounts required to be transferred by the Oil Pollution Act
of 1990 from the Trans-Alaska Pipeline Liability Fund established
under section 204 of the Trans-Alaska Pipeline Authorization Act,
and
(8) any penalty paid pursuant to section 311 of the Federal
Water Pollution Control Act, section 309(c) of such Act (as a
result of violations of such section 311), the Deepwater Port Act
of 1974, or section 207 of the Trans-Alaska Pipeline
Authorization Act.
(c) Expenditures
(1) Expenditure purposes
Amounts in the Oil Spill Liability Trust Fund shall be
available, as provided in appropriation Acts or section 6002(b)
of the Oil Pollution Act of 1990, only for purposes of making
expenditures -
(A) for the payment of removal costs and other costs,
expenses, claims, and damages referred to in section 1012 of
such Act,
(B) to carry out sections 5 and 7 of the Intervention on the
High Seas Act relating to oil pollution or the substantial
threat of oil pollution,
(C) for the payment of liabilities incurred by the revolving
fund established by section 311(k) of the Federal Water
Pollution Control Act,
(D) to carry out subsections (b), (c), (d), (j), and (l) of
section 311 of the Federal Water Pollution Control Act with
respect to prevention, removal, and enforcement related to oil
discharges (as defined in such section),
(E) for the payment of liabilities incurred by the Deepwater
Port Liability Fund, and
(F) for the payment of liabilities incurred by the Offshore
Oil Pollution Compensation Fund.
(2) Limitations on expenditures
(A) $1,000,000,000 per incident, etc.
The maximum amount which may be paid from the Oil Spill
Liability Trust Fund with respect to -
(i) any single incident shall not exceed $1,000,000,000,
and
(ii) natural resource damage assessments and claims in
connection with any single incident shall not exceed
$500,000,000.
(B) $30,000,000 minimum balance
Except in the case of payments of removal costs, a payment
may be made from such Trust Fund only if the amount in such
Trust Fund after such payment will not be less than
$30,000,000.
(d) Authority to borrow
(1) In general
There are authorized to be appropriated to the Oil Spill
Liability Trust Fund, as repayable advances, such sums as may be
necessary to carry out the purposes of such Trust Fund.
(2) Limitation on amount outstanding
The maximum aggregate amount of repayable advances to the Oil
Spill Liability Trust Fund which is outstanding at any one time
shall not exceed $1,000,000,000.
(3) Repayment of advances
(A) In general
Advances made to the Oil Spill Liability Trust Fund shall be
repaid, and interest on such advances shall be paid, to the
general fund of the Treasury when the Secretary determines that
moneys are available for such purposes in such Fund.
(B) Final repayment
No advance shall be made to the Oil Spill Liability Trust
Fund after December 31, 1994, and all advances to such Fund
shall be repaid on or before such date.
(C) Rate of interest
Interest on advances made pursuant to this subsection shall
be -
(i) at a rate determined by the Secretary of the Treasury
(as of the close of the calendar month preceding the month in
which the advance is made) to be equal to the current average
market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable
to the anticipated period during which the advance will be
outstanding, and
(ii) compounded annually.
(e) Liability of the United States limited to amount in Trust Fund
(1) General rule
Any claim filed against the Oil Spill Liability Trust Fund may
be paid only out of such Trust Fund.
(2) Coordination with other provisions
Nothing in the Oil Pollution Act of 1990 (or in any amendment
made by such Act) shall authorize the payment by the United
States Government of any amount with respect to any such claim
out of any source other than the Oil Spill Liability Trust Fund.
(3) Order in which unpaid claims are to be paid
If at any time the Oil Spill Liability Trust Fund has
insufficient funds (or is unable by reason of subsection (c)(2))
to pay all of the claims out of such Trust Fund at such time,
such claims shall, to the extent permitted under paragraph (1)
and such subsection, be paid in full in the order in which they
were finally determined.
(f) References to Oil Pollution Act of 1990
Any reference in this section to the Oil Pollution Act of 1990 or
any other Act referred to in a subparagraph of subsection (c)(1)
shall be treated as a reference to such Act as in effect on the
date of the enactment of this subsection.
Sources
(Added Pub. L. 99-509, title VIII, Sec. 8033(a), Oct. 21, 1986, 100
Stat. 1959, Sec. 9507; renumbered Sec. 9509, Pub. L. 99-509, title
VIII, Sec. 8033(c)(2)(B), Oct. 21, 1986, 100 Stat. 1962; amended
Pub. L. 100-647, title I, Sec. 1018(u)(20), Nov. 10, 1988, 102
Stat. 3591; Pub. L. 101-239, title VII, Sec. 7505(d)(2),
7811(m)(3), Dec. 19, 1989, 103 Stat. 2364, 2412; Pub. L. 101-380,
title IX, Sec. 9001, Aug. 18, 1990, 104 Stat. 573.)
References in Text
REFERENCES IN TEXT
The Oil Pollution Act of 1990, referred to in subsecs. (b)(2),
(3), (5)-(7), (c)(1), (e)(2), and (f), is Pub. L. 101-380, Aug. 18,
1990, 104 Stat. 484, which is classified principally to chapter 40
(Sec. 2701 et seq.) of Title 33, Navigation and Navigable Waters.
Sections 1006, 1012, 1015, and 6002 of the Act are classified to
sections 2706, 2712, 2715, and 2752 of Title 33, respectively. For
complete classification of this Act to the Code, see Short Title
note set out under section 2701 of Title 33 and Tables.
Section 311 of the Federal Water Pollution Control Act, referred
to in subsecs. (b)(4), (8) and (c)(1)(C), (D), is classified to
section 1321 of Title 33. Subsec. (d) of section 311, which related
to maritime disaster discharges, was amended generally by Pub. L.
101-380, title IV, Sec. 4201(b), Aug. 18, 1990, 104 Stat. 525.
Subsec. (k) of section 311 was repealed by Pub. L. 101-380, title
II, Sec. 2002(b)(2), Aug. 18, 1990, 104 Stat. 507.
The Deepwater Port Act of 1974, referred to in subsec. (b)(5),
(8), is Pub. L. 93-627, Jan. 3, 1975, 88 Stat. 2126, as amended,
which is classified generally to chapter 29 (Sec. 1501 et seq.) of
Title 33. Section 18 of the Act was classified to section 1517 of
Title 33 prior to its repeal by Pub. L. 101-380, title II, Sec.
2003(a)(2), Aug. 18, 1990, 104 Stat. 507. For complete
classification of this Act to the Code, see Short Title note set
out under section 1501 of Title 33 and Tables.
Section 302 of the Outer Continental Shelf Lands Act Amendments
of 1978, referred to in subsec. (b)(6), was classified to section
1812 of Title 43, Public Lands, prior to its repeal by Pub. L.
101-380, title II, Sec. 2004, Aug. 18, 1990, 104 Stat. 507.
Sections 204 and 207 of the Trans-Alaska Pipeline Authorization
Act, referred to in subsec. (b)(7), (8), are classified to sections
1653 and 1656, respectively, of Title 43.
Section 309(c) of the Federal Water Pollution Control Act,
referred to in subsec. (b)(8), is classified to section 1319(c) of
Title 33, Navigation and Navigable Waters.
Sections 5 and 7 of the Intervention on the High Seas Act,
referred to in subsec. (c)(1)(B), are classified to sections 1474
and 1476, respectively, of Title 33.
The date of the enactment of this subsection, referred to in
subsec. (f), probably means the date of enactment of Pub. L.
101-380, which was approved Aug. 18, 1990, and which amended
subsec. (f) generally.
Miscellaneous
AMENDMENTS
1990 - Subsec. (b)(2) to (8). Pub. L. 101-380, Sec. 9001(a),
added pars. (2) to (8) and struck out former pars. (2) to (5) which
read as follows:
''(2) amounts recovered, collected, or received under subtitle A
of the Comprehensive Oil Pollution Liability and Compensation Act,
''(3) amounts remaining (on January 1, 1990) in the Deepwater
Port Liability Fund established by section 18(f) of the Deepwater
Port Act of 1974,
''(4) amounts remaining (on such date) in the Offshore Oil
Pollution Compensation Fund established under section 302 of the
Outer Continental Shelf Lands Act Amendments of 1978, and
''(5) amounts credited to such trust fund under section 311(s) of
the Federal Water Pollution Control Act.''
Subsec. (c)(1). Pub. L. 101-380, Sec. 9001(b), amended par. (1)
generally, substituting ''Expenditure purposes'' for ''General
expenditure purposes'' in heading and substituting current text
consisting of subpars. (A) to (F) for former text consisting of
general provisions in subpar. (A) and special rules in subpar. (B).
Subsec. (c)(2)(A). Pub. L. 101-380, Sec. 9001(c), substituted
''$1,000,000,000'' for ''$500,000,000'' in heading and in cl. (i),
and substituted ''$500,000,000'' for ''$250,000,000'' in cl. (ii).
Subsec. (c)(2)(B). Pub. L. 101-380, Sec. 9001(e)(2), substituted
''payments of removal costs'' for ''payments described in paragraph
(1)(A)(i)''.
Subsec. (d)(2). Pub. L. 101-380, Sec. 9001(d)(1), substituted
''$1,000,000,000'' for ''$500,000,000''.
Subsec. (d)(3)(B). Pub. L. 101-380, Sec. 9001(d)(2), substituted
''December 31, 1994'' for ''December 31, 1991''.
Subsec. (e)(2). Pub. L. 101-380, Sec. 9001(e)(1), substituted
''Oil Pollution Act of 1990'' for ''Comprehensive Oil Pollution
Liability and Compensation Act''.
Subsec. (f). Pub. L. 101-380, Sec. 9001(e)(3), substituted
''References to Oil Pollution Act of 1990'' for ''References to
Comprehensive Oil Pollution Liability and Compensation Act'' in
heading and amended text generally. Prior to amendment, text read
as follows: ''For purposes of this section, references to the
Comprehensive Oil Pollution Liability and Compensation Act shall be
treated as references to any law enacted before December 31, 1990,
which is substantially identical to subtitle E of title VI, or
subtitle D of title VIII, of H.R. 5300 of the 99th Congress as
passed by the House of Representatives.''
1989 - Subsec. (b)(3). Pub. L. 101-239, Sec. 7811(m)(3), made
technical correction to directory language of Pub. L. 100-647, see
1988 Amendment note below.
Pub. L. 101-239, Sec. 7505(d)(2)(B), substituted ''(on January 1,
1990)'' for ''(on the 1st day the Oil Spill Liability Trust Fund
financing rate under section 4611(c) applies)''.
Subsec. (c)(1)(A). Pub. L. 101-239, Sec. 7505(d)(2)(C), which
directed amendment of subsec. (c)(1) by striking the last sentence,
was executed by striking out the last sentence of subsec.
(c)(1)(A), as the probable intent of Congress. Such sentence read
as follows: ''For purposes of this subparagraph, references to the
Comprehensive Oil Pollution Liability and Compensation Act shall be
treated as references to qualified authorizing legislation (as
defined in section 4611).''
Subsec. (f). Pub. L. 101-239, Sec. 7505(d)(2)(A), added subsec.
(f).
1988 - Subsec. (b)(3). Pub. L. 100-647, as amended by Pub. L.
101-239, Sec. 7811(m)(3), substituted ''Deepwater'' for ''Deep
Water'' wherever appearing.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-380 applicable to incidents occurring
after Aug. 18, 1990, see section 1020 of Pub. L. 101-380, set out
as an Effective Date note under section 2701 of Title 33,
Navigation and Navigable Waters.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 7811(m)(3) of Pub. L. 101-239 effective,
except as otherwise provided, as if included in the provision of
the Technical and Miscellaneous Revenue Act of 1988, Pub. L.
100-647, to which such amendment relates, see section 7817 of Pub.
L. 101-239, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE
Section 8033(c)(1) of Pub. L. 99-509 provided that: ''The
amendments made by this section (enacting this section) shall take
effect on the commencement date (as defined in section 4611 of the
Internal Revenue Code of 1954 (now 1986), as amended by this
part).''
(For purposes of section 8033(c) of Pub. L. 99-509, set out as
notes above and below, the commencement date is Jan. 1, 1990, see
section 7505(d)(1) of Pub. L. 101-239, set out as an Effective Date
of 1986 Amendment note under section 4611 of this title.)
REPORT ON OIL SPILL LIABILITY TRUST FUND
Pub. L. 104-66, title I, Sec. 1122(a), Dec. 21, 1995, 109 Stat.
724, provided that: ''The quarterly report regarding the Oil Spill
Liability Trust Fund required to be submitted to the House and
Senate Committees on Appropriations under House Report 101-892,
accompanying the appropriations for the Coast Guard in the
Department of Transportation and Related Agencies Appropriations
Act, 1991 (Pub. L. 101-516), shall be submitted not later than 30
days after the end of the fiscal year in which this Act is enacted
and annually thereafter.''
(House Report 101-892, 101st Congress, 2d Session, provided that:
''The conferees direct the Coast Guard to submit quarterly reports
to the House and Senate Committee on Appropriations detailing and
summarizing all transfers to and expenditures from the oil spill
liability trust fund. Each report shall account for each transfer
to and expenditure from the fund as authorized by Section 9509 of
the Internal Revenue Code of 1986, as amended, and Sections 5003
and 5004 of the Oil Pollution Act of 1990 (Public Law 101-380) (33
U.S.C. 2733, 2734). The report shall also show amounts collectable
under Section 9509(b)(2), (3), and (8) of the Internal Revenue Code
of 1986. For those authorized expenditures subject to limitations,
the report shall so indicate. The Coast Guard shall confer with
the House and Senate Committees on Appropriations as to the format
for these reports.'')
DEEPWATER PORT LIABILITY FUND
Section 2003(b) of Pub. L. 101-380 provided that: ''Any amounts
remaining in the Deepwater Port Liability Fund established under
section 18(f) of the Deepwater Port Act of 1974 (33 U.S.C. (former)
1517(f)) shall be deposited in the Oil Spill Liability Trust Fund
established under section 9509 of the Internal Revenue Code of 1986
(26 U.S.C. 9509). The Oil Spill Liability Trust Fund shall assume
all liability incurred by the Deepwater Port Liability Fund.''
OFFSHORE OIL POLLUTION COMPENSATION FUND
Section 2004 of Pub. L. 101-380 provided that: ''Title III of the
Outer Continental Shelf Lands Act Amendments of 1978 (43 U.S.C.
1811-1824) is repealed. Any amounts remaining in the Offshore Oil
Pollution Compensation Fund established under section 302 of that
title (43 U.S.C. 1812) shall be deposited in the Oil Spill
Liability Trust Fund established under section 9509 of the Internal
Revenue Code of 1986 (26 U.S.C. 9509). The Oil Spill Liability
Trust Fund shall assume all liability incurred by the Offshore Oil
Pollution Compensation Fund.''
DEPOSIT OF CERTAIN PENALTIES INTO OIL SPILL LIABILITY TRUST FUND
Section 4304 of Pub. L. 101-380 provided that: ''Penalties paid
pursuant to section 311 of the Federal Water Pollution Control Act
(33 U.S.C. 1321), section 309(c) of that Act (33 U.S.C. 1319(c)),
as a result of violations of section 311 of that Act, and the
Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.), shall be
deposited in the Oil Spill Liability Trust Fund created under
section 9509 of the Internal Revenue Code of 1986 (26 U.S.C.
9509).''
COORDINATION WITH SUPERFUND REAUTHORIZATION
Section 8033(c)(2) of Pub. L. 99-509 provided that: ''If the
Superfund Amendments and Reauthorization Act of 1986 is enacted -
''(A) subsection (a) of this section shall be applied by
substituting 'section 9508' for 'section 9506',
''(B) section 9507 of the Internal Revenue Code of 1954 (now
1986), as added by this section, is hereby redesignated as
section 9509 of such Code, and
''(C) in lieu of the amendment made by subsection (b), the
table of sections for subchapter A of chapter 98 of such Code is
amended by adding after the item relating to section 9508 the
following new item:
'' 'Sec. 9509. Oil Spill Liability Trust Fund.' ''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 33 sections 1321, 2701,
2718.
