Oil Spill Response Enhancement Act of 2021
This bill authorizes the President to indemnify, subject to specified limits, contractors that respond to oil spills and other discharges of hazardous substances for certain liabilities.
To amend the Federal Water Pollution Control Act with respect to 
       contracts for oil spill response, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oil Spill Response Enhancement Act 
of 2021''.

SEC. 2. OIL AND HAZARDOUS SUBSTANCE REMOVAL.

    Section 311(c) of the Federal Water Pollution Control Act (33 
U.S.C. 1321(c)) is amended--
            (1) in paragraph (1)(B)--
                    (A) in clause (ii), by striking ``and'' at the end;
                    (B) in clause (iii), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(iv) enter into a contract with a person to carry 
                out the removal actions under this subparagraph and 
                shall indemnify that person with whom the President has 
                entered into a contract under this clause for 
                liabilities arising out of the performance of the 
                contract, and expenses, incidental thereto, that are 
                not compensated by any insurance required under the 
                contract.''; and
            (2) by adding at the end the following:
            ``(7) Limitations on indemnity.--Indemnification provided 
        under paragraph (1)(B)(iv) shall be made solely from funds that 
        are available in the Oil Spill Liability Trust Fund established 
        by section 9509 of the Internal Revenue Code of 1986 and may 
        not include indemnification for any liability of the person--
                    ``(A) who is a responsible party for the discharge;
                    ``(B) arising from the gross negligence or willful 
                misconduct of the person;
                    ``(C) arising from the gross negligence or willful 
                misconduct of a person in the violation of paragraph 
                (3);
                    ``(D) arising from the gross negligence or willful 
                misconduct of a person in the breach of an express term 
                of the contract;
                    ``(E) for which the contractor has failed to 
                maintain any insurance required by the contract; or
                    ``(F) that exceeds the per incident limit described 
                in section 9509(c)(2)(A) of the Internal Revenue Code 
                of 1986.''.

SEC. 3. USES OF THE OIL SPILL LIABILITY TRUST FUND.

    (a) In General.--Section 1012(a) of the Oil Pollution Act of 1990 
(33 U.S.C. 2712(a)) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5)(D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) the indemnification of persons with whom the 
        President has entered into a contract pursuant to paragraph 
        (1)(B)(i) of section 311(c) of the Federal Water Pollution 
        Control Act (33 U.S.C. 1321(c)) for liabilities arising out of 
        the performance of the contract, and litigation costs and 
        attorneys' fees incidental thereto, that are not compensated by 
        any insurance required under the contract.''.
    (b) Availability.--Section 6002(b) of the Oil Pollution Act of 1990 
(33 U.S.C. 2752(b)) is amended by striking ``1012(a)(4)'' and inserting 
``1012(a)(4) and (6)''.
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Oil Spill Response Enhancement Act of 2021
To amend the Federal Water Pollution Control Act with respect to contracts for oil spill response, and for other purposes.
Oil Spill Response Enhancement Act of 2021
Rep. Young, Don