After much wrangling, stepping on toes, and leaving in a huff - nine senators representing Gulf Coast states have come to agreement on how money BP, et. al., has paid in the form of fines will be distributed - and as you might expect, environmental concerns get the crumbs...well, not really crumbs, but much less of a share than it's more noisy big brother ECONOMIC IMPACT...
Oil spill fine proposal: Most money would go for economic recovery along Gulf.
Under the Restore the Gulf Coast Act of 2011, the money will be distributed to all five Gulf states - although Louisiana maintained it was most directly affected by the gusher, other states countered that even though they did not have much oil on their beaches, they were affected economically and deserve a share of the pie...
The money - Clean Water Act fines assessed on the companies for violations incurred as a result of the Deepwater Horizon blowout - will not be distributed yet, but the general agreement moves the process along.
Sen. Barbara Boxer, (D-CA) the chairwoman of the Senate Committee on Environment and Public Works, said that during discussion it was not clear if any agreement would be achieved.
"This was not easy. I can recall several difficult meetings in my office with various colleagues," Boxer said at a Capitol Hill news conference announcing the accord. "Looking at Bill (Nelson, D-FL). Looking at Richard (Shelby, R-AL)."
Shelby called the agreement "good news for Alabama’s environmental and economic recovery from the oil spill."
"This legislation allows for great flexibility in the allocation of recovery funds to ensure that the penalties our state is owed are distributed in the best interest of Alabama’s coastal communities," Shelby’s statement said.
Senator Mary Landrieu (DINO-LA) calls the act "important":
“The Deepwater Horizon explosion was a tragedy that took the lives of 11 men and devastated an already fragile coastline. While there are many things that must be done to respond to that horrific incident, the Restore the Gulf Coast Act of 2011 is one of the most important things that needs to be done.”
Sen. Roger Wicker (R-MS) said the compromise would bring speedy recovery to the Gulf Coast. (Sure, Roger... Anything you say... jerk...)
"It represents a balanced approach by all Gulf state senators to support economic and environmental restoration," Wicker said during the news conference.
Sen. John Cornyn (R-TX) was the only member of the group not signing the agreement. His office had no comment.
The federal Clean Water Act mandates that companies responsible for disasters such as last summer’s Gulf oil spill must pay penalties based on the amount of oil spilled. BP PLC and other responsible parties could be on the hook for between $5.4 billion and $21.1 billion.
However, the law as currently written would send the revenue to a fund for the cleanup of future oil spills and to federal coffers for general use.
Obama administration officials, Gulf lawmakers and many others have expressed support for a rewrite of the law to send the money to the Gulf Coast.
That effort had stalled for months as Gulf lawmakers worked to find consensus.
A breakdown of the general distribution of funds from a press packet from the office of Sen. Shelby:
35 percent would be divided equally among the five states. States could use this money for environmental or economic recovery projects.
30 percent would be divided among the states according to a complicated formula calculating the severity of the oil spill’s impact on each state. These funds could also be spent on environmental or economic recovery projects. Senior aides to Sen. Richard Shelby, R-Tuscaloosa, indicated that Louisiana would get about 10.5 percent, Alabama would get about 6 percent, Florida and Mississippi would get slightly less than 6 percent and Texas would get about 2 percent.
30 percent would be allocated by the newly formed Gulf Coast Ecosystem Restoration Council, which would include representatives from each state and the federal government. The money would be limited to environmental projects, which would be chosen by the council without strict guidelines regarding how much goes to each state.
5 percent would be used to fund Gulf science and fisheries programs. Each state would receive some funding, but the National Oceanic and Atmospheric Administration would have leeway in determining how much money goes where.
As you might imagine, the lion's share goes anywhere but to environmental concerns. I guess 30-35 percent is better than nothing. But with this: ...projects...chosen by the council without strict guidelines regarding how much goes to each state there is sure to be continued disagreement as to what goes where, and delays made by arguing over money may be more costly for the Gulf environment.
---------
Mississippi Attorney General Jim Hood stated on Thursday that he hopes an upcoming audit by the US Department of Justice is in the best interest of Gulf Coast residents.
Hood’s comment came a day after U.S. Attorney General Eric Holder announced the audit in a letter to the fund’s administrator, Kenneth Feinberg. Holder stressed the goal is to balance the need for resolving claims quickly and fairly along with the need to start an audit before the end of the year.
Holder said the fund’s “highest priority” should be to achieve speed and fairness.
Holder made a June 30 trip to the Gulf Coast in which he heard concerns from Alabama officials and residents about the transparency of the claims process.
On July 13, Hood sued Feinberg to get access to claims filed by coastal residents. A hearing on the lawsuit is scheduled in Hinds County Chancery Court on Sept. 15.
“It is a shame we had to file a lawsuit to try to force Mr. Feinberg to do the right thing,” Hood said in a statement Thursday. “I plan to speak with U.S. Attorney General Holder to ensure this audit is truly independent and in the best interest of the residents of our Gulf Coast.”
Hood said his office’s attempts to access the documents on Mississippi claims had failed; that BP and Feinberg have responded with some information but not all requested documentation had been received.
The BP fund has paid $4.7 billion to 198,475 claimants.
The total number of claimants stands at 522,506, of which many are multiple claims. The fund has nearly 1 million claims and receives thousands more each week.
|