Thursday, March 12, 2015

NRD Settlements Need More Rules, Less Deals


Environmental standards should protect our critical natural resources. They should be enforced in a timely, consistent and equitable manner for all violators. The public has a right to know. Government should maximize fiscal accountability and transparency, and allow maximum citizen participation in the political process.
Right?
According to the Natural Resource Damages (NRD) report prepared for the NJDEP in 2006, Exxon's Bayway and Bayonne refineries polluted soils, sediments, and surface and groundwater in about 1,700 acres of wetlands, meadows, and streams in the Hudson-Raritan Estuary for over 100 years. Petroleum products and waste, consisting of hundreds of different organic contaminants and heavy metals, were spilled, discharged, or discarded - as dredge material for filling salt marshes, in leaking landfills, leakings barges, pipeline ruptures, tank failures, overflows, and explosions.
The courts ruled that Exxon was liable for damaging the region's natural resources. The report recommended that the state seek compensation. More than 500 acres around Bayway and 25 acres around Bayonne were to be restored at a cost of $2.5 billion. Additionally, Exxon would have had to restore more than 30,000 acres of wetlands, meadow and forest elsewhere in NJ, at a cost of $6.4 billion - for a total cost of $8.9 billion.
The State has inscrutably decided to settle with Exxon for $225 million. This amount alone guarantees that meaningful restoration is moot. But it never had a chance anyway. Since last year, penalties from Natural Resource Damages over $50 million can be diverted into the general fund rather than be used for their intended purpose.
Like a few months ago - when three quarters of a $190 million settlement to restore natural resource damages in the Passaic River was diverted to the general fund.
It is not just the local communities who have lost something. The Hudson-Raritan Estuary drains into the ocean past Sandy Hook. Monmouth County's Bayshore and ocean resources are downstream of the “pervasive and ubiquitous” contamination from these sites. The County is in the path of the runoff from Exxon's “tar flats” and landfill “popups” during routine rainfall, let alone during a flood. Keeping this kind of arbitrary decision-making as the status quo is not in the County's economic and environmental interests.
To protect the public health and the environment, two very loose ends need to be nailed down by the NJ Department of Environmental Protection and our legislature.
It's been five years since the Administration's own transition team warned that rules needed to be adopted for the NRD process “to provide transparency, certainty and consistency in the assessment of those damages.” The NJDEP needs to finally adopt regulations that provide standards for quantifying NRD damages. The NJDEP Baseline Ecological Evaluation, which has been adopted, only documents the damages; it doesn't assign a quantifiable cost. The State is weakened in settlement negotiations without having specific numeric standards to fall back on. It is settling for fractional penalties that ensure there will be no meaningful restoration – or that taxes will have to subsidize the private sector's mistakes - and deepen our state deficit. Having standards is but one way of eliminating the disturbing disconnect that is evidently happening now during penalty negotiations.
It's also clear that legislation is needed to require that NRD penalties are dedicated for what they were intended: funding the restoration of damaged natural resources.