GAO Report from B-255979

B-255979 Oct 30, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Subsection 1012(a)(4) of OPA is not available to natural resources trustees for claims for damages. Section 1006 provides that where there is damage to natural resources due to the discharge of oil. Such damages are to be recovered from the party responsible for the discharge under section 1002 of OPA. The issue is important because. The Fund is only available under subsection 1012(a)(2) to the extent Congress has provided amounts in annual appropriation acts. Payment of claims from the Fund under subsection 1012(a)(4) is not similarly subject to the limitation in section 6002. The rule that a specific appropriation is available to the exclusion of a general appropriation would dictate that natural resources trustees must seek reimbursement under subsection 1012(a)(2). View Decision Matter of: U.S. Coast Guard - Oil Spill Liability Trust Fund File: B-255979 Date: October 30, 1995 Coast Guard asks whether it may reimburse natural resources trustees directly from the Oil Spill Liability Trust Fund (Fund) under subsection 1012(a)(4) of the Oil Pollution Act (OPA) or whether such reimbursements may only be made, subject to the annual appropriations process as required by section 6002 of OPA, under the authority of subsection 1012(a)(2). Given the specific language of subsection 1012(a)(2) with regard to natural resources trustees and the requirements of section 6002, we conclude that natural resources trustees may be reimbursed from the Fund for costs incurred for damage assessments and the development and implementation of restoration plans only under subsection 1012(a)(2) of the Oil Pollution Act, subject to the annual appropriations process. Subsection 1012(a)(4) of OPA is not available to natural resources trustees for claims for damages. DECISION The Commandant, United States Coast Guard, requested our opinion concerning certain provisions of the Oil Pollution Act of 1990 (OPA), Pub. L. No. 101-380, 104 Stat. 484 (1990). Specifically, the Commandant questioned whether the Coast Guard can reimburse natural resources trustees directly from the Oil Spill Liability Trust Fund (the Fund) under the authority of subsection 1012(a)(4) of OPA, or whether such reimbursements must be made under the authority of subsection 1012(a)(2) and thus subject to the annual appropriations process pursuant to section 6002 of OPA. For the reasons set forth below, we conclude that natural resources trustees may be reimbursed from the Fund for costs incurred for damage assessments and the development and implementation of restoration plans only under subsection 1012(a)(2), subject to a requirement for a specific appropriation. BACKGROUND The Coast Guard has received several claims for reimbursement from natural resources trustees for costs incurred while carrying out their duties under section 1006 of OPA. Section 1006 provides that where there is damage to natural resources due to the discharge of oil, the United States Government, state and local governments, or Indian tribes shall act as trustees for those natural resources owned or controlled by that governmental unit and shall assess the damage and develop plans for the restoration, rehabilitation, or replacement of such resources, or acquisition of equivalent natural resources. Such damages are to be recovered from the party responsible for the discharge under section 1002 of OPA, but OPA also makes available the Oil Spill Liability Trust Fund for payments as set forth in section 1012 of OPA. Subsection 1012(a)(2) of OPA provides specifically that the Fund shall be available to the President for "the payment of costs incurred by Federal, State, or Indian tribe trustees in carrying out their functions under section 1006 . . . ." However, a second subsection may also be available to natural resources trustees, subsection 1012(a)(4) of OPA, which provides that the Fund shall also be available to the President for the payment of claims, submitted under the procedures of section 1013 of OPA, for uncompensated removal costs or uncompensated damages. The issue is important because, under the provisions of section 6002 of OPA, the Fund is only available under subsection 1012(a)(2) to the extent Congress has provided amounts in annual appropriation acts. Payment of claims from the Fund under subsection 1012(a)(4) is not similarly subject to the limitation in section 6002. The Coast Guard questions whether the application of "Federal appropriations law principles" precludes natural resources trustees from receiving reimbursement under subsection 1012(a)(4) because it views subsection 1012(a)(4) to be a general appropriation and subsection 1012(a)(2) to be a specific appropriation.