
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC9509]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                       Subtitle I--Trust Fund Code
 
                       CHAPTER 98--TRUST FUND CODE
 
               Subchapter A--Establishment of Trust Funds
 
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.

(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, Secs. 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

    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.


                               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.' ''

                  Section Referred to in Other Sections

    This section is referred to in title 33 sections 1321, 2701, 2718.
