Cost

Fri, 2012-10-05 06:00Farron Cousins
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BP Settlement Deal Could Put Taxpayers On The Hook For Spill Costs

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.

Mon, 2012-09-17 12:06Farron Cousins
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U.S. Government Significantly Underestimating Costs Of Climate Change And Dirty Energy

A new study released today shows that the U.S. government is using faulty calculations and outdated information to determine the costs of energy and climate change in America. The study was written by Chris Hope from the University of Cambridge and Laurie Johnson of the Natural Resources Defense Council, and published in the Journal of Environmental Studies and Sciences.

Current government models would have us believe that fossil fuels provide the cheapest sources of electricity for the United States, but the new study says that the numbers being used are misleading, as they do not take into account all of the costs, specifically those related to climate change, that these sources of energy carry.

From NRDC:

Wed, 2012-02-08 12:28Farron Cousins
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The Business of Risk – Insuring Against Climate Change

When it comes to assessing risk, the insurance industry is one of the leaders in the field. Whether it is health insurance, car insurance, or homeowner’s insurance, the industry is forced to analyze every possible scenario for a given person or structure, and impose a fee based on the likelihood of events for the situation. So when an entire industry that bases their profitability on reducing risk starts factoring climate change into their equations, it's probably a good idea to pay attention.

Earlier this month, insurance commissioners in three separate U.S. states began mandating that insurance providers include the risk of climate change disasters in their risk equations, and develop and disclose their plans to deal with climate-related catastrophes. These plans will be laid out in surveys that insurance companies will provide to insurance commissioners in their respective states.

The three states that have made these new rules are California, New York, and Washington State. Previously, many states had only required the largest insurance companies to have climate plans, but the new rules, which could spread across the United States to climate change-vulnerable places like Florida and Texas, require all insurers to adjust for climate change disasters.

The New York Times lays out why the industry is taking on climate change issues:

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