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As millions of gallons of oil are transported and stored across the United States every day, we are faced with the possibility of an accidental spill that can devastate wildlife, endanger our water, and impact our economy.
The U.S. Coast Guard’s National Pollution Funds Center (NPFC), committed to protecting America’s environment, provides protection up-front by certifying that oil-carrying vessels have the financial ability to pay in the case of an oil spill. When spills do occur, the NPFC provides funding for quick response, compensates claimants for cleanup costs and damages, and takes action to recover costs from responsible parties.
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Oil Pollution Act (OPA)
In 1990, Congress passed the Oil Pollution Act (OPA) to help address a wide range of issues associated with preventing, responding to, and paying for oil pollution. Title 1 of OPA established oil spill liability and compensation requirements, including the Oil Spill Liability Trust Fund (OSLTF) to help facilitate cleanup activities and compensate for damages from oil spills. In 1991, the United States Coast Guard created the National Pollution Funds Center (NPFC) to implement Title 1 of OPA, administer the OSLTF, and ensure effective response and recovery.
Read More. . .
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Responsibilities Under Other Statutes
The NPFC is also responsible for administering the Coast Guard portion of Superfund, which funds the clean-up of hazardous substances and was created by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). Read More...
The Stafford Act provides federal assistance to state and local governments impacted by a significant disaster or emergency, such as hurricanes or terrorist acts. The NPFC administers pollution-related disaster funds under the Stafford Act and the National Response Framework. Read More...
See our Mission and Vision for an overview of all we do.
See NPFC Laws and Regulations for more of our legal authorities.
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Issuing COFRS
One of the most challenging concerns in overseeing oil transportation in navigable waters is ensuring that responsible parties can be held accountable for cleanup costs and damages when there is an oil spill or threat of a spill. The NPFC tackles this challenge by issuing Certificates of Financial Responsibility (COFRs). COFRs are granted when a shipping vessel owner has demonstrated the ability to pay for oil spill cleanup and damages. In general, vessels weighing more than 300 gross tons must have a valid COFR to operate in U.S. waters. Read More...
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Funding Spill Response
When an oil or hazardous substance spill occurs, the NPFC provides the financial resources for a quick, effective response. NPFC funding is available 24 hours a day for federal responders to oversee the polluter’s cleanup activities or, if necessary, mitigate the threat themselves. This funding permits a rapid pre-assessment of natural resources damaged by the spill, as well as spill containment, cleanup, and disposal. Read More...
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Adjudicating Claims
If the party responsible for an oil spill does not pay or is not known, claimants may ask the NPFC for reimbursement from the OSLTF. They may submit claims to the NPFC for payment of the following:
- Uncompensated removal costs
- Natural resource damages (Natural Resource Trustees only)
- Damages to real or personal property
- Loss of subsistence use of natural resources
- Loss of profit and earning capacity
- Net loss of government revenue by federal, state, or political subdivisions
- Net cost for increased public services by a state or its political subdivisions
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Recovering Costs
NPFC takes action to recover cleanup costs from the responsible party. To begin the cost recovery process, the NPFC first identifies the polluter and ensures that all costs and damages from a spill area are accurately documented. The NPFC then bills the responsible party for payment of cleanup costs and damages. Timely and efficient cost recovery not only ensures that the polluter is held accountable, but also encourages potential polluters to act more carefully in the future. Read More...
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NPFC's Organization
The NPFC is organized into eight divisions.
| Vessel Certification |
Certifies vessel operators' maintenance of financial responsibility of oil and hazardous substance pollution from vessels in U.S. waters. Receives and processes enforcement inquiries. Provides information to Coast Guard and Customs officials concerning the detainment and release of U.S.- and foreign-flag vessels under the certification enforcement program. |
| Case Management |
Ensures emergency funding is available to support responses to the substantial threat or actual discharge of oil or the release of hazardous substances into U.S. navigable waters. Acts as the primary point of contact with the pollution response community. Provides for accurate cost documentation and effective cost recovery. |
| Claims Adjudication |
Adjudicates claims for uncompensated removal costs and OPA-specified damages from a discharge of oil or the substantial threat of discharge of oil into U.S. navigable waters. |
| Natural Resource Damage (NRD) Claims |
Provides funding for the initiation of NRD activities and adjudicates NRD claims and loss of subsistence use claims caused by a discharge of oil or the substantial threat of discharge in U.S. navigable waters. |
| Financial Management |
Provides fund management and oversight for OSLTF, CERCLA, and pollution-related disaster funds under the Stafford Act and the National Response Framework (NRF). Coordinates all budgeting functions, including planning and programming. Prepares financial statements in accordance with the Chief Financial Officers Act. |
| Customer Service |
Oversees and manages all external coordination activities, NPFC's strategic planning, publication programs, and Congressional and public affairs activities. Coordinates all internal and external training programs and military and civilian personnel matters. |
| Information Technology (IT) |
Ensures that IT systems support the mission and business requirements of the NPFC and that the IT infrastructure supports CG-Ballston mission requirements. Provides 24/7 support for computers, phones, faxes, and network servers for 10 Coast Guard units with over 500 users. |
| Legal |
Provides legal support for the NPFC, including advice on cleanup funding, claims adjudication, cost recovery, and vessel financial responsibility. Provides litigation support to the U.S. Department of Justice (DOJ). |
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