Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Will U.S. Taxpayers Foot the Bill for BP Oil Spill Cleanup?

Energy

DeSmogBlog

by Farron Cousins

A proposed settlement deal between the federal government and BP over their involvement in the 2010 Deepwater Horizon oil rig explosion and subsequent oil leak could shift the burden of cleanup costs away from the oil giant and onto U.S. taxpayers.

The current settlement option is just one of several being negotiated between the federal government and BP. But this settlement option would route fine and settlement money through the Natural Resource Damage Assessment (NRDA), rather than fining the company directly via the Clean Water Act.

Not only could this reduce the total amount of money that the company pays in fines, but it would shift the burden of cost onto U.S. taxpayers.  While the company would still be paying out of pocket, the NRDA allows the company to write off their fines and deduct that from their yearly taxes.  Paying through the Clean Water Act would not allow the costs to be tax deductible. 

But the cost shift is just one of the problems with the proposed deal.  The provision that has residents of the Gulf Coast up in arms is the fact that the NRDA would route the money through the U.S. Treasury, instead of directly sending it to local and state governments.  This means that the Treasury, not the affected areas, would be in charge of determining how the money is spent.

While Louisiana and Florida would actually see the amount of money flowing into their areas increase, the states of Texas, Alabama, and Mississippi would suffer a severe reduction, if not total elimination, of their settlement money. 

Accusations are already flying that President Obama has engineered this deal in order to secure more money for Florida, in the hopes that it will keep the valuable swing state blue in this year’s election.  But the only thing Obama is guilty of in this story is appointing an industry-friendly Attorney General, Eric Holder, who made his fortune at the corporate defense law firm of Covington & Burling, who lists notable polluters such as Halliburton among their clients. 

BP has already written off as much as $11.8 billion in their oil spill clean up costs – directly shifting that tax burden onto U.S. citizens.  Any deal that allows them to continue to write off their fines and costs is an unfair punishment to all Americans, but particularly to those of us who were impacted by the BP oil disaster.

Visit EcoWatch’s GULF OIL SPILL pages for more related news on this topic.

 

EcoWatch Daily Newsletter

Public Employees for Environmental Responsibility on Thursday accused NOAA of ignoring its own scientists' findings about the endangerment of the North Atlantic right whale. Lauren Packard / Flickr / CC BY 2.0

By Julia Conley

As the North Atlantic right whale was placed on the International Union for Conservation of Nature's list of critically endangered species Thursday, environmental protection groups accusing the U.S. government of bowing to fishing and fossil fuel industry pressure to downplay the threat and failing to enact common-sense restrictions to protect the animals.

Read More Show Less
Pexels

By Beth Ann Mayer

Since even moderate-intensity workouts offer a slew of benefits, walking is a good choice for people looking to stay healthy.

Read More Show Less
Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday. JustTulsa / CC BY 2.0

Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday.

Read More Show Less
The Firefly Watch project is among the options for aspiring citizen scientists to join. Mike Lewinski / Wikimedia Commons / CC by 2.0

By Tiffany Means

Summer and fall are great seasons to enjoy the outdoors. But if you're already spending extra time outside because of the COVID-19 pandemic, you may be out of ideas on how to make fresh-air activities feel special. Here are a few suggestions to keep both adults and children entertained and educated in the months ahead, many of which can be done from the comfort of one's home or backyard.

Read More Show Less
People sit at the bar of a restaurant in Austin, Texas, on June 26, 2020. Texas Governor Greg Abbott ordered bars to be closed by noon on June 26 and for restaurants to be reduced to 50% occupancy. Coronavirus cases in Texas spiked after being one of the first states to begin reopening. SERGIO FLORES / AFP via Getty Images

The coronavirus may linger in the air in crowded indoor spaces, spreading from one person to the next, the World Health Organization acknowledged on Thursday, as The New York Times reported. The announcement came just days after 239 scientists wrote a letter urging the WHO to consider that the novel coronavirus is lingering in indoor spaces and infecting people, as EcoWatch reported.

Read More Show Less
A never-before-documented frog species has been discovered in the Peruvian highlands and named Phrynopus remotum. Germán Chávez

By Angela Nicoletti

The eastern slopes of the Andes Mountains in central Perú are among the most remote places in the world.

Read More Show Less

Trending

Left: Lemurs in Madagascar on March 30, 2017. Mathias Appel / Flickr. Right: A North Atlantic right whale mother and calf. National Marine Fisheries Service

A new analysis by scientists at the Swiss-based International Union for Conservation of Nature (IUCN) found that lemurs and the North Atlantic right whale are on the brink of extinction.

Read More Show Less