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BP Spill vs SB Mouth
Posted on Jul 9th, 2015

 
 
 
The Environmental Law Institute (ELI) website is a good explanation of the proposed settlement between BP and the Feds and five states for penalties related to the Deepwater Horizon spill. The road to an open San Bernard River mouth appears to have gotten steeper.

The Clean Water Act imposes civil and administrative penalties for spills, and they would normally go into federal coffers.  After the enormous Deepwater Horizon spill, Congress passed the RESTORE Act to direct 80% of those funds through a special distribution formula to more directly benefit the areas affected. 
 
Federal Court rulings up until now had established a maximum possible liability for BP of $13.7B. ELI panelists had expected a final ruling would be in the $10B range. The proposed settlement is for $5.5B, of which 80% or $4.4B will be distributed through the RESTORE Act. 
 
 The distribution formula provides for several "pots" of the settlement, each going different places and decided by different groups. The pot on which the San Bernard River mouth project has been counting heavily is called the Direct Component and goes directly to the states. It is administered solely by each state, as long as the projects meet the RESTORE Act guidelines, which the mouth project does. Each of the five states will receive $308M from that pot. The mouth project could easily reach $60M, or one fifth of the entire Texas amount. It isn't likely, though not impossible, that TCEQ Commissioner Toby Baker would choose to spend that much on one project.

Another RESTORE Act source that might be available for the mouth project is the funding administered by the eleven member RESTORE Council, consisting of the five states and six Federal agencies.  While this is a larger amount, $1.3B, there are many more fingers in this pie and the distribution will very likely favor states to our east that were more directly impacted by the spill, as well as "open water" projects to address ocean floor and sea life damages that have yet to be fully assessed.

The last bit of bad news is BP will have 15 years to pay the penalties, beginning the year after the settlement is approved. Assuming approval next year, Texas would receive its first $20M installment in 2017. Commissioner Baker would have to allocate 100% of that to the mouth project for three years straight to fully fund it by the end of 2019.

The ELI's Public Participation Bulletin Board will post information on opportunities to comment on the settlement, as well as participate in the project selection process for Texas Direct Component funds and for the RESTORE Council administered funds.  The amount of the settlement, the 15 year payout provision, and visibility of the mouth project during selection all deserve close attention and comment by all who consider themselves friends of our San Bernard River.
 
Summation by Tom Ronayne, FOR President
 
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