Act No. 55 on environmental responsibility.

The purpose of this Act is to ensure that the person responsible for environmental damages caused by economic activity or imminent risk of such damage prevents the damage or compensates for damages if they have occurred and bears the costs of the resulting measures in accordance with the polluter pays principle. It applies to environmental damage caused by economic activities covered by Annex II or imminent risk of environmental damage caused by such activities.
The Act contains the following Chapters: I. Objectives, scope, definitions; II. Duty to act and duty to notify; III. Instructions; IV. Responsibility for payment of costs; V. Government and supervision; VI. Procedure; VII. Fees; VIII. Firing; IX. General rules for damages; X. Appeal; XI. Penalties; XII. Implementation; and XIII. Entry into force. IT also contains two Annexes: I. Remedies for environmental damage to water and protected species and nature reserves; and II. Activities referred to in paragraph 1 Article 2.
The Act lays down specific rules regarding the assessment of damage to protected species and nature reserves; the duty to act and notify in case of environmental damage or imminent risk of environmental damage; the submission of a plan for remediation for environmental damage that has already occurred; the allocation of responsibility for damage or risk of damage by competent authorities; instructions to operators to provide information and carry out research; instruction to take precautionary measures; instructions for remediation for environmental damage; cases of multiples damages; cases of multiple responsibility; procedural matters; etc.
The Ministry for the Environment and Natural Resources shall be in charge of matters in accordance with this Act. The Environment Agency of Iceland shall shall supervise and monitor the implementation of this Act.