Thursday, August 23, 2007

BP: Bi-Partisan or Back to Pollution?



One of the top Hardball showdowns of the summer was highlighted last month when CBS2

reported on a story pitting our drinking water against the price we pay for gas at the pump. The story also highlights the conflicts that can arise when federalism allows states to set their own environmental standards.



BP, British Petroleum, had worked out an agreement with both federal and state regulators to allow a more lenient dumping permit.



But Federal lawmakers outside of Indiana--where no jobs are on the line-- are furious.



The U.S. House of Representatives voted overwhelmingly to scold Indiana and BP for the decision to dump more pollutants into Lake Michigan -- the source of drinking water for millions.



Just as important as the politics are the critical concepts at play.



Supply and Demand



To reduce the price of gasoline, BP is converting more Canadian oil into gasoline which results in more byproducts such as ammonia and heavy sludge. Supplying cheaper gasoline has its costs: reducing demand for oil or allowing a larger supply of pollutants into Lake Michigan.



Federalism and Bi-partisanship



In a Federal government, the national government allows states to tailor some decisions in their interests. But in the case of Lake Michigan drinking water, states neighboring Indiana are demanding that the Federal government enforce the Clean Water Act more strictly.



We've grown accustomed to partisan bickering between Democrats and Republicans. So it is refreshing to see that both parties can join together over an issue like clean water. This bipartisan effort is certainly a rarity in today’s politics.



Keep an eye out to see if this story translates into a refreshing glass of water in the near future. By the way, I see this as classic Hardball positioning by federal lawmakers dumping on BP and Indiana officials who see openings for 3,000 dirty jobs that somebody’s got to do -- It might as well be their constituents



Q+A



Please submit any questions or comments to this story.

3 comments:

Mr Wolak said...

The Sun-Times reported Friday that BP had pledged to back of its increased dumping plan:

Although it received regulatory approval to increase the amount of pollution it can dump into Lake Michigan, BP America pledged Thursday that its Whiting, Ind., plant will maintain discharge levels -- a move the oil company now says could halt the controversial $3.8 billion expansion plan linked to the additional pollutants.

The announcement came during a morning breakfast meeting in the Loop where Dan Sajkowski, manager of the Whiting refinery, addressed business leaders from the Chicago area and northwest Indiana.

Full article can be found at:

http://www.dailysouthtown.com/business/524137,824bpbacksdown.article

Mr. Wolak

Sree said...

I did many projects about the enviornmental condition of this planet as well as about global warming. In my research, I have found that the biggest misconceptions about global warming and enviornmental change were coming from the EPA!!! I later realized that the Bush Administration was creating the false facts because it had major connections with the oil companies. So my point is that even if the EPA allowed the dumping of crap in the lake (which it did), it did not take the decision on the basis of enviornmental factors or actual facts on the ground(keep in mind that many citizens around the lake are very upset with this problem).

But as a person, one must ask themselves if dumping crap into a lake is actually ethical. Who cares if laws provide for this to happen. We all know that BP is doing this because it wants to save money in disposal of waste so it will do whatever it can to do so. Common sense will tell us that dumping waste will only hurt the lake.

Jenny said...

Although the Federal government may be stepping on Indiana's toes with this issue, the condition of the water in Lake Michigan effects many of the surrounding states, and therefore it is a national, not state issue. As an environmentalist, I am disgusted that BP continues to pollute our water, but I can also see this issue from an economist's point of view. By using Canadian oil, it does allow for cheaper oil and jobs, but we, as a country, must understand that although the waste may not be toxic to us today, everytime we pollute our fresh water, less and less is able to be converted into clean drinking water.