Showing posts with label BP. Show all posts
Showing posts with label BP. Show all posts

Tuesday, August 18, 2015

Punish and Reform the EPA

The accidental spill of toxic wastewater into Colorado’s Animas River is an ironic case study: The very organization meant to protect Americans from environmental catastrophes was responsible for perpetrating it. How should the Environmental Protection Agency be held accountable?

Colorado, and the states downstream of the spill, should sue the EPA. But, instead of merely recovering the cost of environmental damage, the lawsuit should focus on taming the leviathan the EPA has become.
Created in 1970 by President Richard Nixon, the EPA, at its best, has been an important part of improving air and water quality. Clear standards, enforced in a straightforward way have been successful. The fact that the American environment is cleaner and safer than it has been in a century is partially due to EPA action.
In recent years, however, the EPA has moved away from those clear standards, preferring to exercise vague discretion in a way that is costly and often ineffective.
Punish and Reform the EPA | RealClearScience
After the Gulf oil spill, the agency was vindictive in its treatment of BP. It banned the oil company, as well as 21 subsidiaries unconnected to the spill, from obtaining new federal contracts due to a “lack of business integrity.” The ban was lifted only after BP sued the EPA. In total, BP paid $54 billion in settlements, including $5.5 billion to the EPA for violating the Clean Water Act.
To be clear, it is not vindictive to hold BP – or anyone else – accountable for environmental damage. But, it is not responsible for the EPA to strain its authority to engage in a self-serving money grab.
The situation with the Animas provides more evidence that EPA’s desire to expand or protect its power can too often trump environmental stewardship.
For example, EPA Director Gina McCarthy told reporters, “The good news is [the Animas River] seems to be restoring itself.” Imagine the (justifiable) outrage from the EPA had BP made such a claim only a few days after the Gulf spill was capped when much of the damage had yet to be assessed.
And it’s not just British oil companies the EPA targets. The EPA threatened a Wyoming man with a $75,000-per-day fine for building a pond on his own property. Such behavior led a Washington Post editorial to observe, “The EPA is earning a reputation for abuse.”
The EPA often argues that money should be no object when protecting the environment. The same agency, however, has been circumspect about paying the significant costs for the damage it caused.
The wide gap between the cavalier attitude toward businesses and personal property rights and their own squeamishness to hold themselves accountable demonstrates that institutional – rather than environmental – protection is playing a decisive factor in EPA decision-making.
If EPA chooses to protect is own, rather than holding employees accountable, can we accuse Director McCarthy of a “lack of integrity”? To what standard will she be held?
The contrasting way the EPA dealt with BP and its own damage at the Animas River demonstrates that agency motives are not always entirely pure. They are quick to demand others pay and give them power, using the environment as a lever. But when their own funding and power is questioned, they minimize the environmental damage and cost. Director McCarthy even had the lack of awareness to tell the people of Colorado not to worry because the “EPA is here.”
The bottom line is that while the EPA has done much good, it has come to associate environmental protection with its own aggrandizement. Now is the time to make it clear that environmental protection, not a self-serving power grab, is what the public wants.

Friday, July 3, 2015

[EDITORIAL] Editorial: A promising BP settlement

Nearly eight months after the April 2010 BP oil spill, workers in Waveland, Miss., remove tar balls from along the Gulf Coast. Under a settlement Thursday, BP will pay $18.7 billion to resolve nearly all outstanding claims.
Getty Images
Nearly eight months after the April 2010 BP oil spill, workers in Waveland, Miss., remove tar balls from along the Gulf Coast. Under a settlement Thursday, BP will pay $18.7 billion to resolve nearly all outstanding claims.
The settlement announced Thursday in the 2010 BP oil spill marks a major turning point for the federal-state effort to repair the Gulf of Mexico after the worst environmental disaster in U.S. history. The $18.7 billion that BP has agreed to pay is substantial enough to help the gulf, punitive enough to send a message to the industry and affordable enough to keep a major player active in the vital energy sector. Florida fares well at first glance, but it will be up to regulators and the courts to ensure that this framework agreement actually fulfills its promise.
The settlement would resolve nearly all outstanding claims resulting from the explosion of the Deepwater Horizon drilling rig, which sank off the coast of Louisiana on April 20, 2010, killing 11 workers and causing millions of barrels of oil to spew into the Gulf of Mexico. BP would pay $18.7 billion in damages and fines, including $7.1 billion for environmental restoration, $5.9 billion for economic claims from the five gulf states and a record $5.5 billion in penalties under the Clean Water Act (80 percent of which will be directed to gulf restoration projects), plus other costs.
State and federal officials could have held out for more, and U.S. Sen. Bill Nelson said he would have liked to have seen larger damages. The federal court in New Orleans overseeing the case was expected to rule on damages any day, and BP lost its bid this week to have the U.S. Supreme Court consider its appeal on damages. But this deal is a reasonable effort to end years of litigation, provide certainty for all sides and bring serious money to the table for economic losses and restoration. And it's on top of $1 billion the company fronted early on for restoration projects (several of which are under way in Florida). BP also committed another $1 billion to resolve local government claims; Tampa announced Thursday it would receive $27 million. And BP will set aside an additional $600 million to cover any future environmental damage and any outstanding response costs.

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