Senate Approves Legislation Directing BP Fines to Gulf Coast States

Today, the Senate approved  legislation in the form of an amendment to the chamber’s version of the transportation bill. The amendment will ensure 80 percent of the Clean Water Act penalties the federal government collects as a result of the BP oil spill are distributed in the best interest of the communities along the Gulf Coast. The legislation was sponsored by Sens. Bill Nelson (D-Fla.) and Richard Shelby (R-Ala.) and was supported by all Senators from the region in a bi-partisan manner. Under current law, the penalties acquired from BP and other responsible parties would go into the U.S. Treasury.. This legislation would ensure the vast majority of all civil penalties paid by BP, or any other responsible party in connection with the Deepwater Horizon spill, would be divided among the five Gulf Coast states most impacted by the spill. The House passed a similar measure creating a Trust Fund to collect such related fines for the Gulf Coast as part of the transportation bill it considered in February and it is expected there will be an agreement between the House and Senate on enacting a comprehensive relief package. AGC is encouraged this legislation would promote the long-term construction opportunities in the Gulf Coast region through the funding of infrastructure projects, including coastal flood protection directly affected by coastal wetland losses, beach erosion, or the impacts of the Deepwater Horizon oil spill. For more information, please contact Marco Giamberardino at (703) 837-5376 or giamberm@agc.org.