What Is the Oil Pollution Act of 1990?
Let me explain the Oil Pollution Act of 1990, or OPA, directly to you. The U.S. Congress passed this act to give the Environmental Protection Agency more authority to stop oil spills. It came as an amendment to the Clean Water Act of 1972, right after the Exxon Valdez spill in 1989. You should know that the OPA stands as one of the broadest and most important environmental laws we've seen.
Key Takeaways
Here's what you need to grasp about the OPA: it broadened federal powers to prevent and penalize large oil spills. Congress enacted it after the 1989 Exxon Valdez incident, amending the Clean Water Act. The act's main aim is to set up a full federal system for avoiding spills and handling cleanup in emergencies. Enforcement falls primarily to the U.S. Coast Guard and the EPA. Prior to the OPA, the U.S. lacked proper federal funding for spill responses and had limited options for compensating those affected, but this law fixed those issues.
Understanding the Oil Pollution Act of 1990
Think about the Exxon Valdez spill on March 24, 1989—it dumped 11 million gallons of Alaskan crude into Prince William Sound. That was the biggest U.S. spill until Deepwater Horizon in 2010 took over. It hit 1,300 miles of coastline and killed or harmed countless animals; even 25 years later, four species haven't recovered, and as of August 2020, oil pockets remain in the area. This disaster showed how unprepared the U.S. was, with insufficient resources like federal funds and narrow damage compensation. That's why we created the OPA—to address these gaps.
The OPA builds a complete federal structure to prevent spills and outline cleanup steps for emergencies. The U.S. Coast Guard and EPA handle most of the enforcement and administration. Before this, pollution laws were a mess of weak rules and low accountability for polluters. The OPA changes that by setting tougher standards for oil transport at sea.
It includes new rules for building vessels and training crews, requirements for contingency plans, better federal response tools, wider enforcement powers, higher penalties, more research into cleanup tech, greater liabilities, and stricter financial responsibilities. Overall, the OPA boosts government control over maritime oil movement and sets up a solid system for prevention, response, liability, and compensation in U.S. waters.
Liability Under the Oil Pollution Act of 1990
A big focus of the OPA is the liability it places on parties responsible for damaging oil spills—financial and otherwise. If you're identified as the responsible party, you face essentially unlimited costs for cleanup. But if you're a claimant seeking reimbursement, you must first ask the guilty party directly. If they refuse, you can sue them or go to the federal Oil Spill Liability Trust Fund.
The OPA authorizes this fund up to $1 billion per spill for fast removal and unpaid damages. The fund itself started in 1986, before Valdez, to pay for cleanups, assessments, and uncovered liabilities. It gets money from taxes on domestic and imported petroleum products.
Other articles for you

Weak shorts are traders with short positions who exit quickly on price rises, often retail investors, influencing stock volatility and short squeezes.

Trade volume measures the total shares or contracts traded for a security in a given period, indicating market activity and liquidity.

Force majeure clauses in contracts excuse parties from liability during unforeseeable catastrophic events that prevent fulfillment of obligations.

Near the money describes an options contract where the strike price is close to the underlying security's current market price, similar to at the money.

This text explains collateralized mortgage obligations as complex mortgage-backed securities, their operations, risks, and role in the 2008 financial crisis.

The supply curve shows how the quantity supplied of a good increases as its price rises, illustrating the law of supply in economics.

The PEG ratio evaluates a stock's value by dividing its P/E ratio by its earnings growth rate, offering a more comprehensive assessment than P/E alone.

Interest Rate Parity (IRP) is a fundamental concept that equates interest rate differences between countries to the differential in their forward and spot exchange rates, preventing arbitrage in forex markets.

Negative convexity occurs when a bond's price decreases as interest rates fall, leading to a concave yield curve, commonly seen in callable and mortgage bonds.

Residual standard deviation measures the spread of residuals in regression analysis to assess model predictability.