346 ENVIRONMENTALENGINEERINGThe federal Clean Water Act only covers wastes discharged to navigable water-
ways. Only surface water and ocean waters within 200 miles from the coast are con-
sidered, and a revolving fund is set up by the act and administered by the Coast Guard.
Fines and charges are deposited into the fund to compensate victims of discharges, but
the funds are only available if the discharge of the waste is clearly identifiable. The
fund is used most often for compensating states for cleanup of spill from large tanker
ships. The federal Drinking Water Act includes groundwater protection, and directs
EPA to set ‘‘maximum contaminant levels” (MCL) for groundwater contaminants.
The Outer Continental Shelf (OCS) Lands Act sets up two funds to help pay for
hazardous waste cleanup and to compensate victims. Under the act, OCS leaseholders
are required to report spills from petroleum-producing sites, and the Offshore Oil Spill
Pollution Fund exists to finance cleanup costs and compensate injured parties for loss
of the use of property, natural resources, profits, and state or local government’s loss
of tax revenue. The U.S. Department of Transportation (DOT) is responsible for the
administration of this fund, provided by a tax on oil produced at the OSC sites. If
the operator of the site cooperates with the DOT after a spill, his or her liability is
limited.
The Fisherman’s Contingency Fund also exists under the OCS Lands Act to repay
fishermen for loss of profit and equipment owing to oil and gas exploration, devel-
opment, and production. The U.S. Department of Commerce is responsible for the
administration of this fund. Assessments are collected by the U.S. Department of
the Interior from holders of permits and pipeline easements. If a fisherman cannot
pinpoint the site responsible for the discharge of hazardous waste, his or her claim
against the fund may still be acceptable if the boat was operated within the vicin-
ity of OCS activity and if a claim is filed within 5 days. Two agencies are involved
in the administration of the fund, making the implementation of the fund especially
confusing.
The price-Anderson Act provides compensation to victims of accidental discharge
from nuclear facilities. Radioactive material/toxic spills and emissions are covered, as
are explosions. The licensees of a nuclear facility are required by the Nuclear Regula-
tory Commission (NRC) to obtain insurance protection. If damages from an accident
exceed this insurance coverage, the federal government indemnifies the licensee up to
$500 million. In no case does financial liability exceed $560 million. If an accident
occurs such that liability exceeds $560 million, federal disaster relief is called upon.
The Patriot Act of 2002 has added maximum indemnity of $90 billion in the event of
deliberate attack.
Under the Deepwater Ports Act, the Coast Guard acts to remove oil from deep-
water ports. The DOT administers a liability fund that helps pay for the cleanup and
that compensates injured parties. Financed by a 2q: per barrel tax on oil loaded or
unloaded at such a facility, the fund takes effect once the required insurance coverage
is exceeded. The port itself must hold insurance for $50 million for claims against its
waste discharges, and vessels are insured for $20 million for claims against their waste
spills. Once these limits are exceeded, the fund established by the Deepwater Ports Act
takes over. Again, the usefulness of the fund is dependent on how well two agencies
work together and how well insurance claims are administered, and administration is