Jo Bonner and Jeff Sessions co-sponsored the “Oil Spill Response and Assistance Act” in the U.S. House and Senate respectively.

The bills would increase the liability for economic damages for oil companies to $150 million or last 4 quarters of company profits (whichever is greater) retroactive to April 15, 2010.

BP’s last 4 quarters of profit is roughly $20.6 billion.

Senate Democrats’ Big Oil Bailout Prevention Liability Act raises the cap to $10 billion dollars.

Total costs were projected to be $12.5 billion by David Kotok of Cumberland Advisors. By current law BP’s economic damages are limited to $75 millon (i.e. 0.6% of the $12.5 billon).

BP said in a May 26 press release that “it will pay legitimate claims for loss and damage caused by the spill.” The Obama administration has said there is no need to change the liability cap retroactively, in light of BP’s comments.

Sources include www.factcheck.org