The Oil Pollution Act (OPA) became law in August 1990, after the Exxon Valdez oil spill highlighted the immense harm of an oil spill. The act allows those who lose income or profits because of an oil spill to recover compensation (damages) from responsible parties in this way: damages equal to the loss of profits or impairment of earning capacity due to the injury, destruction, or loss of real property, personal property, or natural resources, which shall be recoverable by any claimant.

33 U.S.C. § 2702(b)(2)(E).

But the act does more than that.

The OPA improved the federal government’s ability to respond to oil spills and the threat of such spills. The Act also provides for funds to respond to such spills through the Oil Spill Liability Trust Fund. The Fund can provide up to $1 billion to respond to each spill.

The OPA requires government and industry to develop contingency plans for dealing with oil spills or threatened spills, in the form of the National Oil and Hazardous Substances Pollution Contingency Plan (NCP).

The OPA also increases the penalties for regulatory noncompliance and broadens response and enforcement authority of the federal government. In addition, it maintains the states’ authority to enact laws governing oil spill prevention and response.

The U.S. Environmental Protection Agency (EPA) provides more information about their Oil Pollution Act on their website. Our attorneys are also available to discuss how the OPA affects your potential claims.