Congress: Oil Spill Money Increased For Coast Guard Clean Up

WASHINGTON (AP) -- Congress is making more money available to the Coast Guard to pay for its response to the BP oil spill in the Gulf of Mexico.

The bill that now goes to President Barack Obama removes the $100 million limit that the Coast Guard can spend on the spill from a government trust fund used to pay cleanup costs. The Coast Guard would run out of money to fight the spill next week if the spending cap is not lifted, said Rep. James Oberstar, D-Minn., chairman of the House transportation committee.

Lawmakers said the federal government will require BP to reimburse the Coast Guard's expenses, but the service needs congressional authority to spend more than $100 million on the largest oil spill in U.S. history.

The House voted 410-0 on Thursday to lift the spending cap. The Senate passed the bill on a voice vote Wednesday.

The trust fund, which has about $1.6 billion, is financed by a tax of 8 cents per barrel on oil produced by or imported into the U.S. The House passed a bill last month to increase the tax to 34 cents a barrel. The Senate is considering a bill to increase the tax to 41 cents a barrel.

Rep. John Mica of Florida, the top Republican on the transportation committee, said he supports making the money available to the Coast Guard but wants more assurances that BP will repay the government.

The Coast Guard has so far sent BP two bills. BP paid a $1.8 million bill last week, a few days after receiving it. The Obama administration sent BP a $69 million bill last week. By law, BP has 30 days to pay, said Craig Bennett, director of the Coast Guard's National Pollution Funds Center.

"I have no doubt that BP is going to pay the $69 million," Bennett said.

BP officials have said they will pay all legitimate claims.

Comments

[changling]

11:21 AM on 06/12/2010

Are we closely monitoring where all the money is going this time and if it is being spent wisely or going into someone's pockets like with the Bank Bailouts? Just a thought.

[maxfax]

11:21 PM on 06/11/2010

Where is this money going? The clean up looks like a 2 year old is in charge.

[apiazza]

01:43 PM on 06/11/2010

It's for all of you Republicans to admit that Socialism isn't that bad. It is going to fund cleanup of the oil spill.

[maxfax]

11:21 PM on 06/11/2010

What cleanup?

[carmemirandashat]

09:58 AM on 06/11/2010

I continue to be amazed at the number of small-minded, obviously biased, uninformed, hypocritical and uncomprehending posts that have and continue to appear regarding this disaster. First and foremost, BP is responsible for all of the costs and have criminal liability for this disaster. TransOceanic and Halliburton will get their share of the responsibility, but for now, BP as the contractor, holds the lion's share. Second, the two-faced criticisms against the current administration are moronic. The stage for this, and the other disasters (environmental or otherwise) was set when the massive deregulation of major industries was enacted. Unfortunately, it is much easier to destroy a complex system than to repair it, so the perceived slowness in response to anything the government does is without ridiculous at best, unless you want the government to declare a national emergency, which would elicit the hair-pulling hysterics of more government usurping our freedoms, something the Bush criminal organization conducted without any concern for individual rights and freedoms. The lack of perspective and introspection by the rabid right would be hilarious, were it not so frightening.

[cuppajava]

10:12 AM on 06/11/2010

Amen, Carmen. Fanned.

[cuppajava]

10:21 AM on 06/11/2010

http://online.wsj.com/article/SB10001424052748704423504575212031417936798.html
BP chose not to install a remote-control shut-off switch used in other major oil-producing nations as last-resort protection against underwater spills called an acoustic switch. The deregulated industry here from Cheney's associations with Halliburton didn't want to bother BP with protecting our waters on a similar level of accountability enjoyed by citizens of other oil-producing nations. So, BP, Transocean, and Halliburton did their cheaper crap shoot on safety in the gulf waters, and WE ALL WILL SUFFER FOR IT FOR GENERATIONS.

The ONLY thing that would make me feel the least little bit better right now is for Tony Hayward to take his arrogant self out for a scuba dive in the gulf and be left to swim to shore through all the dying, dead, and rotting corpses of animal life out there....through those non-existent miles of underwater plumes of oil, as well...and through his toxic brew of dispersants, which may end up being worse than even the oil and natural gas continuously exploding, months later, from the gash in the floor of the gulf.

[cuppajava]

09:27 AM on 06/11/2010

In the race to cleanup the oil, Rachel Maddow discussed the very real possibility of a tremendously helpful new machine that separates spilled oil floating on water. http://www.msnbc.msn.com/id/26315908/vp/37628719#37628719

When floating oil is scooped up, centrifugal (or centripetal) force spins the oily water, separating the oil out. BP tested this invention, found it to be promising, and ordered 32 which will be delivered next week.

Somebody mentioned using hair sewn together to soak up the oil. At this point, WHATEVER works is good. I'm putting my money on Costner's invention, and praying for the best for all the gulf's residents and the habitat there.

[957]

10:13 AM on 06/11/2010

Hay good old farm hay is suppose to be able to absorb oil when spread out on the water and is suppose to a remarkable degree, then you just burn it .

[cuppajava]

01:22 PM on 06/11/2010

But doesn't burning it pollute the air?

[jcwtts1]

10:30 AM on 06/11/2010

The frustration is that the costner product was demonstrated 4 weeks ago and they are just getting them now.

There is a problem with the hair booms and that is what do you do with the hair when they are done. I believe they are contaminated and dangerous and as difficult to clean up as the oil it self. At least that is what I heard.

J

[TexasRoadrunner]

09:23 AM on 06/11/2010

If anyone really thinks BP will pay all claims get ready for a big surprise!! We need to move quickly to freeze their assets before they move to untouchable banks. Make no mistake, that is what they plan to do, and guess who gets screwed again??

[DFutureIsNow]

09:19 AM on 06/11/2010

BP needs to send Obama a blank check so he can fill it with as many zeroes as he can... preferably till he runs out of ink.

[GBO]

08:59 AM on 06/11/2010

If BP shares continue to nose-dive, I think I will soon be able to buy up the company..

[DFutureIsNow]

09:21 AM on 06/11/2010

lol. Then you get stuck with the bill

[Phoenix56317]

08:40 AM on 06/11/2010

I and a few others here may see a shift in how this going to be handled.

How is a "BLANK CHECK" going to stop the flow of OIL when no amount money has this far stemmed to even slow it down ? Why is money an issue in getting this Major Screw-Up fixed ?

Worry about the money later, get this fixed and now !

[themodernleader]

08:29 AM on 06/11/2010

The President is full of threats and bombast about who will pay for the clean up that can't be cleaned up. He and his incompetent staff have never considered the possibility that his government has the right and duty to put together an operation to shut off the oil. To his brilliant man of words and jolly staff, actions are secondary and subordinate to words. Furthermore, Americans are not smart enough to find a way to shut down the oil destroying our southern and southeastern coastal region.
If I were President, iwould find a team of competent individuals that would stop that leak. Then I wouldn't need to beg for a meeting with BP to talk things over. The BP predatory monopoly would be begging to plead about how they were to be broken up into separate entities for the public good.

[code blue]

08:54 AM on 06/11/2010

Check your timeline of events. Deep sea submersibles were approved on April 25. On May 2, the first relief well was started. BP didn't want to start a second one, but the government made them. They started it on May 16. The top hat approach wasn't even started until May 5. The only thing that will stop the flow of oil is the relief well. And they started it immediately.

[Dustee]

08:58 AM on 06/11/2010

It's a good thing we don't have the three stooges from the Bush administration.

[regularguynyc]

09:51 AM on 06/11/2010

So the argument is: "as bad as Obama is Bush was worse"?!?!? Are you still in grade school?

[OldeTymeLiberalDude]

08:28 AM on 06/11/2010

What about the liability of Halliburton and Trans Ocean in all this? Two large corporations with very deep pockets and a lot of profits from tax payer dollars.

[Ravyn]

08:54 AM on 06/11/2010

My sentiments exactly.

[hollybork]

08:02 AM on 06/11/2010

Time to increase the gasoline tax like they did in Europe thirty years ago. Do it now.
Also set up a civilian marine conservation corp like FDR did in 1932. It would pass now.
Let's move forward from this and begin to adapt to a world of alternative energies, and a world that
is showing the collapse of the middle class. Remember that in 1932 people did not even know they were in a depression, but they knew that their land was being despoiled by dust storms and mismanagement. We can say the same about our marine and estuary resources.

[regularguynyc]

11:58 AM on 06/11/2010

Have you ever lived in Europe? Well, I have had the opportunity to live in several countries in Europe. While culturally, it's a great experience and the people in general are as solid as Americans, it's hardly the nirvana most liberals point too. In Europe in general ( France, Italy, Germany) there is clearly a caste system where the wealthy elites do not live by the same rules everyone else does (even worse than here), people tend to be very well educated but there is little opportunity to advance oneself beyond the class they are born into, there is virtually NO entrepreneurship. Hospitals are dirty and doctors underpaid, the economy is at the mercy of unions, public utilities are basically dysfunctional and state and local government, law enforcement are corrupt..Did I mention crime was rampant? What I'm saying is there is both good and bad, but because of the lack of the "American Dream" (opportunity) as a whole we are MUCH better off. My point is it is not fair to "cherry pick" from Europe the things you think are better because the society must be looked at as a whole and if you do that you will soon realize that our free market society (with government regulation) is much more fair and equitable for all...Remember, industry can be regulated but governments cannot and we need to be very careful not to give politicians too much power over our lives....

[wethepeople3884]

07:48 AM on 06/11/2010

410-0? Thats a first in the obama administration era. You mean the rethugs didnt try to block the cleanup efforts? Shocking - of course, nothing gets republicans to open up the old wallet quite like knowing the money is going to some part of defense even if it is the coast guard i guess. Im sure they would have preferred the pentagon. Why cant raising the cap for bp liabilities be so straight forward - IMO, its MORE straight forward. BP must spend every penny they need to in order to clean this up - even the rethugliklan party should be able to comprehend that... But apparently not - they are too busy trying to destroy the middle class to vote on something like that. Its funny how republicans seem to LOVE SOCIALISM as long as they are socializing corporate losses and privatizing profits - so despicable.

[pcrudy]

07:44 AM on 06/11/2010

A blank check that is drawn on the taxpayers checkbook.
Congratulations to Obama and the new Democratic Congress for their stellar work on this spill.
How's that hope and changey thing working out?

[GAviaOH]

07:59 AM on 06/11/2010

Try reading the article again genius. Here I'll help you ....

"The trust fund, which has about $1.6 billion, is financed by a tax of 8 cents per barrel on oil produced by or imported into the U.S."

[regularguynyc]

12:01 PM on 06/11/2010

LOL...and you do you think pays for that added $0.08 per barrel?

[Jack Crack]

08:30 AM on 06/11/2010

Why do you have to be such a dickhead?

[Arrech]

08:47 AM on 06/11/2010

LOL.

Fanned

[nancytheragingliberal]

08:51 AM on 06/11/2010

Jack, You are correct . We have so many di**heads here, correcting grammar, spelling, you name it. It must be nice to have such a high IQ, Gavia OH. Sooner or later we tax payers will bend over and pay, pure and simple. Why? BP "only" made 6 bill, tax free, in one quarter. Poor BP, how can they afford to clean up their own mess?

[Mainer36]

07:37 AM on 06/11/2010

Of the top 5 most profitable companies of all time, all 5 are oil companies. meanwhile taxpayers will be stuck with the cleanup bill. Privatized profits, socialized bailouts. Its the corporate way...And I guess the American way too.