State officials say Louisiana was hurt more than other states by the Deepwater Horizon oil spill, and so should get more money than other states from companies responsible for the disaster.
Garret Graves, who leads the state Coastal Protection and Restoration Authority, told state lawmakers on May 8 that the state opposes such funds going to the federal Oil Spill Liability Trust Fund, given that 60-90 percent of the oil spills impacts have occurred on coastal Louisiana.
“This would be the federal government literally profiting from the injury that was experienced in Louisiana and the Gulf Coast,” Graves said.
Rep. Joe Harrison, a Republican from Houma, agreed.
“We incurred the majority of the damage by far,” he said. “And that’s why I would hope that, and I know that our Congressional delegation and also the governor and the executive committees that are involved would present the type of information that supports our position to get the largest portion of that potential fine to assist us in what I think is going to be something we’re going to deal with for years to come.”
Graves said that recommendations in reports by Navy Sec. Ray Mabus and the National Commission on the Deepwater Horizon Oil Spill and Offshore Drilling, established by President Barack Obama, as well as legislation by U.S. Sen. Mary Landrieu, D-La., and U.S. Rep. Steve Scalise, R-La., would divert up to 80 percent of fines to the coastal states.
But Graves said there is well-established precedent for a second alternative: directly negotiating a settlement between local authorities and responsible parties.
In that case, up to 80 percent of fines would be spent on supplemental environmental projects to restore the environment, coast and fisheries. Graves has asked federal authorities to begin negotiations for such a settlement.
He said Louisiana would fare better by negotiating a settlement with federal agencies rather than reaching a political solution in Congress.
“One of the challenges in going through Congress is that Sen. Landrieu, Sen. Vitter, our House delegation will have to negotiate with the delegations from those other states,” Graves said. “Texas has a large delegation. Florida has a large delegation.”
He said a Congressional solution would also require a budget offset from the diversion to the states, which he said would be very difficult in this budget climate.
Negotiating with the Justice Department, the Environmental Protection Agency and responsible parties directly “would be a better venue for Louisiana to negotiate based on true impacts and merit, versus based upon political considerations and who has a larger delegation.”
Graves says federal liability may rise to $70 billion across the responsible parties.
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