MARSH & MCLENNAN MARSH & MCLENNAN, Hon. EDMUND S. MUSKIE, New York, N.Y., July 30, 1971. Chairman, Subcommittee on Air and Water Pollution, FEDERAL WATER POLLUTION CONTROL AMENDMENTS (COMMITTEE PRINT, JULY 1971) DEAR SENATOR MUSKIE: This letter is in response to the invitation of your Subcommittee's Staff to express our opinion about the insurability of certain of the Federal Water Pollution Control Amendments relating to liability of shipowners as contained in the recently released Committee Print. For your information, Marsh & McLennan, Incorporated is one of the largest international insurance brokerage firms in the world. Our clients include many foreign as well as American shipowners. We represent the owners and charterers of the so-called Bantry class 326,000 deadweight ton tankers, presently the largest vessels afloat. In purchasing marine insurance for our clients it is necessary for us to utilize underwriting facilities throughout the world as well as the traditional markets in the United States and England. This enables us to establish direct contacts with all of the leading marine underwriting markets and eminently qualifies us to evaluate the insurance capacity and the coverage available. Based upon our knowledge of the world markets, it is our opinion that shipowners, whether American or foreign, will not be able to obtain insurance to protect themselves against unlimited liability to third parties as well as liability to the United States Government for so-called liquidated damages in the event of a discharge from their vessels of an unusually hazardous substance that is incapable of being cleaned up. We are satisfied however, that Underwriters would provide coverage if these hazardous substances are treated the same as oil, i.e., subject to the same basis and limits of liability and with the same defenses as are presently set forth in the Water Quality Improvement Act of 1970. ThereFore, we would respectfully urge that the Subcommittee give full consideration o the seriousness of this problem confronting shipowners in its deliberations with respect to proposed amendments to the Act. Thank you for the opportunity to express our opinion on this subject. Very truly yours, GEORGE W. HANDLEY, NATIONAL ASSOCIATION OF ELECTRIC COMPANIES [COMMITTEE PRINT] FEDERAL WATER POLLUTION CONTROL AMENDMENTS Working paper prepared for the use of the Committee on Public Works (DRAFT FOR DISCUSSION; NOT CORRECTED FOR TECHNICAL ERRORS) 4 3 6 7 any waters or otherwise, to meet applicable water quality standards or to recycle or reuse water at the most economical cost over the estimates, reasonable life of the works, including works for the abatemert of combined sewer overflows, separation, intercepting sewers, $ oufall swers, pataping, power, and other equipment, and their 9 appurtenatices, extensions, improvements, remodeling, additions and 10 alterations thereof, and any works, including site acquisition, neces sary, as determined by the Administrator, to dispose of residues 12 resulting from such treatment." COMMENTS STAFF PRINT 1 implementation plans at all levels of government shall be provided for, 2 encouraged, and assisted by the Administrator and the States. 3 " The Administrator shall, after consultation with appropriate 4 Federal and State agencies and other interested persons, develop and 5 publish, within 90 days after the effective date of this subsection, 6 criteria of sater quality for the purpose of adopting or revising water 7 quality standards Such criteria shall accurately reflect the latest 8 scientific knowledge useful in indicating the kind and extent of all 9 identifiable effects on health and welfare which may be expected from the presence of nutrient and related pollutants as well as other water pollutants in any body of water including ground water, m varying 12 quantities and correlated to water use designations. Such criteria, and revisions thereof, shall be issued to the States and shall be published in the Federal Register and otherwise shall be made available to the 15 public. 10 11 13 14 16 17 19 "je) The Administrator shall after consultation with appropriate Federal and State agencies and other interested persans, issue to the 18 States and appropriate water pliction control agencies from time to time information on available pellation control techniques including 20 information on processes, procesores, und operating methods slach result in the reduction of the discharge of pollutant Such information 22 shall include technical data relating to, and costs of such methods and such data as are available on alternative methods of prevention and control of water pollution Such information, and revisions thereof shall be published in the Federal Register and otherwise shall be made 26 available to the public 21 23 24 25 STAFF PRINT (2) The Administrator shall within six months after the effective date of this paragraph, and from time to time thereafter issue such information on methods, procedures, and processes as may be appropriate to restore and enhance the quality of the Nation's publick owned fresh water lakes. (3) The Administrator shall within six months from the date of enactment enter into agreements with the Secretary of the Army and the Secretary of Agriculture to provale for the utilization of prograins authorized to be conducted by such Secretaries for the purposes of arbieving water quality through implementation plans ander section 304 of this Act. - applicable to interstate waters adopted by any State and submitted to the Administrator pursuant to the Federal Water Pollution Control Act prior to enactment of the National Water Quality Standards Act of 1971 and approved by the Administrator on or before the date of ens finent of the such Act shall remain in effert, inless the Administrator determmes that such standards mider subsection of) of this section for any portion thereof, are not consistent with the app'teabe requiretents of the Federal Water Pollution Control Act tas apended by the National Water Quality Standards Act of 197) 23 if the Administrator so determines, he shall, within 3 months after date of enactinent of the National Water Quality Standards Art of 1971. notify the State and specify in what respects changes are needed to meet the additional requirements of the National Water 29 Quality Standards Act of 1971 If each changes are not adopted by the State after public hearings and within 3 months after such Lotbration, the Administrator shall promulgate such changes pursuant to ection 305 of this Act, 30 32 33 34 33 36 37 39 40 2) Any water quality standards implementation_pion] pppelcable to interstate waters adopted by any State and submitted to the Administrator pursuant to the Federal Water Pollution Control Act prior to enactment of the National Water Quality Standards Act of 1971, pending before the Administrator on or before the date of enactment of the National Water Quality Standards Act of 1971, may be approved by the Administrator and shall remain in effect, unless the Administrator determines that such standards under subsection (d) of this section as action for any portion 42 thereof are not consistent with the applicable requirements of the Federal Water Pollution Control Act (as amended by the National Water Quality Standards Act of 1971 41 43 44 |