Relates to increasing liability for petroleum discharge

BILL NUMBER:S4551

Title of bill

An act to amend the navigation law, in relation to increasing liability for the discharge of petroleum

Purpose or general idea of bill

The purpose of this bill is to update certain liability provisions of the State Oil Spill fund.

Summary of specific provisions

This bill would increase the ability of the oil spill to recover clean up costs and damages that are caused by an oil spill.

Effects of present law which this bill would alter

Amends §181(3) of the Navigation Law.

Justification

The New York Environmental Protection and Spill Compensation Fund, commonly referred to as the Oil Spill Fund, was established in 1977 to expedite clean ups and address oil spills not covered by the federal legislation.

The Federal Oil Pollution Act of 1990 established liability limits for entities subject to the federal reporting requirements and included a provision to update liability limits automatically based on changes in the Consumer Price Index. The accompanying regulation indicated that such changes were necessary to "preserve the deterrent effect and polluter pays principle embodied in the OPA 90 liability provisions."

The State provisions establishing liability limits for petroleum discharges not resulting from negligence were last amended in 1992. This legislation would update those limits, based on the adjustments to the Consumer Price Index since 1992, to reflect inflation. An update to the State's liability provision will serve the same purpose.

Prior legislative history

This is new legislation.

Fiscal implications for state and local governments

None to the State.

Effective date

This act shall take effect immediately.