This bill would hold the owners and operators of oil production facilities liable for oil spills that originate outside of the U.S. exclusive economic zone but cause damage inside those boundaries. Under current law entities can only be held responsible for oil spills that occur inside of U.S. waters and are liable for cleanup costs, damages, and penalties.
Revenue obtained through the collection of penalties would go to the Oil Spill Liability Trust Fund. Currently the trust pays out up to $150 million for post-spill cleanup and up to $850 million for resulting claims and damages, leaving taxpayers and affected states to pay for damages exceeding $1 billion.