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Analysis of an amendment proposed for H.R. 1229, the Putting the Gulf of Mexico Back to Work Act 1 (May 2011)

handle is hein.congrec/cbo08025 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Douglas W. Elmendorf, Director U.S. Congress Washington, DC 20515 May 20, 2011 Honorable Gerald E. Connolly U.S. House of Representatives Washington, DC 20515 Dear Congressman: This letter responds to your recent letter regarding CBO's analysis of an amendment you proposed to H.R. 1229, the Putting the Gulf of Mexico Back to Work Act. That amendment concerned the liabilities of owners and operators of oil and gas drilling platforms that operate in the coastal waters of the United States. CBO estimated that adoption of the amendment would have a net cost to the federal government. I understand that you expected adoption of the amendment would result in a savings to the government relative to current law. For most legislative amendments, CBO does not have sufficient time to explain our estimates in writing, and the cost estimate for your amendment was delivered to your staff over the telephone. This letter attempts to clear up some misunderstandings in your letter and provide a fuller explanation of why CBO estimates that the amendment would have a net cost to the federal government. The Proposed Amendment Your amendment to H.R. 1229 would change a portion of the liability scheme established by the Oil Pollution Act of 1990 (OPA) for the owners and operators of oil and gas drilling platforms that operate in the coastal waters of the United States. Specifically, the amendment would make those owners and operators subject to unlimited liability for any damages caused by an oil spill resulting from offshore platforms.

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