OSC Readiness Training November Navigating the USCG s NPFC Policies on Accessing the OSLTF

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1 OSC Readiness Training November 2004 Navigating the USCG s NPFC Policies on Accessing the OSLTF

2 Course Overview Oil Spill Response Process Federal Oil Spill Response NCP Operational Response Phases for Oil Removal (Subpart D) Phases I-IV Identifying the Responsible Party (RP) Accessing the OSLTF Funding Tools

3 Course Overview contd. State Access to the OSLTF (33 CFR 133) Claims Process (33 CFR 136) Cost Documentation Cost Recovery Summary and Questions List of Attachments

4 Oil Response Process Quick Overview Similar to NCP Processes as CERCLA Responses Two Important Differences Clean Water Act Program Funding via IAG with USCG Threshold Issues Determine Environmental Impact/Threat Determine if Response is Appropriate Ensure it Gets Done (RP, state/local/tribe, EPA) Funding Proper Documentation

5 Oil Spill Response Process What s an Oil? OPA 90 definition Oil of any kind or in any form, including, but not limited to, petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other than dredged spoil, but does not include petroleum, including crude oil or any fraction thereof, which is specifically listed or designated as a hazardous substance under CERCLA.

6 Oil Spill Response Process contd. What s a Hazardous Substance? CERCLA specifically excludes oil and natural gas. 40 CFR 101(14)(F). The term does not include petroleum, including crude oil or any fraction thereof which is not otherwise specifically listed or designated as a hazardous substance and the term does not include natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas).

7 Oil Spill Response Process contd. Authorities Oil Spill Cleanup Authority Federal Water Pollution Control Act (FWPCA) 311(c), as amended by the Oil Pollution Control Act of 1990 (OPA 90), 33 U.S.C. 1321(c). to remove a discharge, and to mitigate or prevent a substantial threat of a discharge, or oil to navigable waters or adjoining shorelines. National Pollution Funds Center (NPFC) Fiduciary Authority Section 7 of Executive Order delegates authority for management of the Oil Spill Liability Trust Fund (OSLTF) to the Secretary of the Department in which the Coast Guard is operating, and this authority is exercised within the Coast Guard by NPFC.

8 Federal Oil Spill Response National Contingency Plan (NCP) Emergency Response Classic Discharge Removal Responses Discharge Substantial Threat of Discharge

9 Federal Oil Spill Response contd. Long-Term Planning and Use of Fund OPA 90 Removal Project Plan (RPP) HQ Review of RPP for Plans over $250,000 Send to Lori Lee and Regional Coordinator

10 NCP Operational Response Phases for Oil Removal (Subpart D) Phase I Discovery or Notification Phase II Preliminary Assessment and Initiation of Action Phase III Containment, Countermeasures, Cleanup and Disposal Phase IV Documentation and Cost Recovery

11 Discovery or Notification (Phase I) How Discovered Notification

12 Discovery or Notification (Phase I) contd. Federal Response Administrative Requirements Oil Spill Response Account Federal Project Number (FPN) EPA Site-Specific Reimbursable Account Number

13 Preliminary Assessment and Initiation of Action (Phase II) OSC Responsibilities Initiate Preliminary Assessment Evaluate magnitude and severity of the spill Determine feasibility of removal Discharge? Substantial Threat of Discharge? Identify Responsible Party Maintain Authority Notify Natural Resource Trustees

14 Containment, Countermeasures, Cleanup and Disposal (Phase III) Prevent, Minimize or Mitigate Threat Recover Oil or Mitigate Effects Disposal of Oil and Contaminated Materials

15 Documentation and Cost Recovery (Phase IV) Documentation to Support Full Cost Recovery Oil Spill Response Case Documentation Support both the work performed on site and the cost of completing those actions. Oil Spill Response Project Documentation Activities performed on site Oil Spill Response Cost Documentation Costs incurred on site (or in support of)

16 Documentation and Cost Recovery (Phase IV) contd. Documentation for Use by Natural Resource Trustees Documentation to NPFC on Regular Basis Project Documentation for Responses with Costs Exceeding $100,000 POLREPs also include on WebOSC WebOSChttp://intranet.epa.gov/swercep2/eoc/webeoc.htm

17 Documentation and Cost Recovery (Phase IV) POLREPs What are POLREPs Types of POLREPs Initial Progress Special Final Who Prepares Who Uses Information Requirements

18 Documentation and Cost Recovery (Phase IV) contd. OPA 90 Removal Project Plan Close Out Process Documentation Request for Oil Spill Response Site Closure Site Completion and Closure Statement Additional Removal Cost Documentation

19 Identifying the Responsible Party (RP) OSC Determinations Regarding Vessel or Facility Source of Discharge or Substantial Threat of Discharge Operational or Abandoned Operational RP any person owning or operating Abandoned RP the person who would have been responsible parties immediately prior to the abandonment of the vessel or facility (40 CFR Definitions)

20 Identifying the Responsible Party (RP) contd. RP Identified Continue removal response activities in an enforcement mode Legal Notice to Suspect Discharger OSC Issues Notice of Federal Interest 311(c) order 311(e) order

21 Accessing the OSLTF CANAPS Ceiling And Numbering Assignment Processing System Consider EPA, Contractor and Other Costs New FPNs will be limited to $50,000 Higher ceilings must be entered by NPFC Case Officer Contact USCG District Fund Administrator to Obtain FPN and project ceiling Exchange Information with USCG-NPFC Case officer assigned to support OSC

22 Accessing the OSLTF contd. Regional/HQ Administrative Program EPA Site Specific Reimbursable Account Number Regional Oil Program Funds Available Regional Contracts Program ERRS contract capacity or ceiling START contract capacity

23 Funding Tools Memorandum of Understanding Multi-Incident IAG (a.k.a. National or Umbrella IAG) Contract Tools ERRS START Notice to Proceed Letter Contract Procurement Request PFRA (NOT a contract, see next page)

24 PFRA - Pollution Removal Funding Authorization OSLTF Funding Tool; Not a Contract May only be used with Local, State or Federal Governments 2 Form Types; Federal and Non-Federal OSC Makes Determination if Requested Work Falls Under NCP and OPA 90 OSC Oversees and Approves Work

25 State Access to the OSLTF (33 CFR 133) OSC Facilitates Access Determines that event is an OPA incident Obtains ceiling and FPN from CANAPS Introduces State s rep to USCG-NPFC Case Officer Allows Direct Access to the Fund Limits $250,000/incident for an Immediate Removal Conducts the Cleanup Forwards paperwork to OSC and NPFC

26 Claims Process (33 CFR 136) Any person can file a claim for reimbursement Uncompensated removal costs Uncompensated damages Person must first submit to RP State may submit directly to NPFC OSC coordination for NPC consistency

27 Cost Documentation Oil Spill Response Cost Documentation SCORPIOS summary reports Payroll distribution timesheets Travel vouchers Contractor invoices Renegotiated Cost Documentation Process CFMC provides NPFC with SCORPIOS Summary Reports Region provides NPFC with a full cost package, it required

28 Cost Recovery Polluter Pays Recover Removal Costs and Damages Incurred by the OSLTF from RP OSC Case Package NPFC Billing Process Case documents key to NPFC efforts RP Defenses (RP has burden of proof) Sole fault third-party Act of War Act of God

29 Cost Recovery contd. Collection Methods Payment plan Debt Management Service Treasury Offset Program DOJ referrals ($100K) Statute of Limitations 3 years from removal completion Ability to pay considerations COMMUNICATION IS KEY

30 Summary and Questions Summary Questions

31 Exercises Four scenarios Designed to emphasize different parts of the Oil Response Process including the administrative aspects Each group will elect a spokesperson to report out to the group NPFC can weigh-in on the proposed solutions

32 List of Attachments National Contingency Plan (40 CFR 300) Draft Threshold Issue Paper (latest version and summary of comments) Scenarios for Group In-Class Exercise Scenario 1 Oil and Hazardous Substances Present Scenario 2 MPG plant Scenario 3 RP search Scenario 4 Substantial Threat POLREP Fact Sheet (June 1994)

33 List of Attachments contd. 33 CFR 133 Oil Spill Liability Trust Fund; State Access 33 CFR 136 Oil Spill Liability Trust Fund; Claims Procedures Legal Notice to Suspected Discharger Pollution Removal Funding Authorization

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