ABSTRACT

Congressional Budget Office Cost Estimate: S. 3305, Big Oil Bailout Prevention Unlimited Liability Act of 2010   [open pdf - 33KB]

From the Summary: "S. 3305 would amend the Oil Pollution Act of 1990 (OPA) to eliminate the limit on liability that owners or operators of certain off-shore drilling facilities (such as oil drilling platforms) face when an oil spill occurs. CBO [Congressional Budget Office] estimates that eliminating the limit would probably result in a net loss of receipts to the government because it would probably lead to a reduction in offsetting receipts (a form of direct spending) from bonus bids that oil and gas operators pay to explore for oil and natural gas on the Outer Continental Shelf (OCS). Enacting the bill also would likely lead to a small reduction in direct spending from the Oil Spill Liability Trust Fund (OSLTF) for compensating those who suffer economic or environmental damages from future oil spills. In total, CBO [Congressional Budget Office] estimates that enacting S. 3305 would increase direct spending by $50 million over the 2011-2020 period. Because enacting the legislation would affect direct spending, pay-as-you-go procedures apply. The bill also would require the United States Coast Guard (USCG) to change its regulation of companies' plans for responding to oil spills. CBO estimates that those provisions would cost $45 million over the 2011-2015 period, assuming appropriation of the amounts estimated to be necessary."

Publisher:
Date:
2010-07-27
Copyright:
Public Domain
Retrieved From:
Congressional Budget Office: http://cbo.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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