A conservative estimate of PCB damages to the Fox River and Green Bay.
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natural resources economics
$333 Million is a Conservative 
Estimate of PCB Damages
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In November 2000, the U.S. Fish and Wildlife Service released its Restoration and Compensation Determination Plan (after 7 years of a Natural Resources Damage Assessment which cost approximately $10 million to research.)

The plan included estimates of economic damages from the PCBs.   It said the public deserved $177 million in compensation if the system could be cleaned up 20 years from now; or $333 million if the cleanup takes 40 or more years.   The sediment cleanup plan proposed by the DNR would allow PCB damages to linger more than 100 years, so the higher compensation  is clearly more appropriate.

Unfortunately, the U.S. Fish & Wildlife Service was conservative in its estimate and compromised their own damage figures, which should have been $400 to $600 million.  In addition, the Service left out several major categories of damages which are likely to total hundreds of millions more (see below). 

It's obvious that $333 million is a bare minimum.

Economic Damages Not Included 

  • Damages to the Lake Michigan Economy --- Only Fox River and Green Bay damages were included, despite the fact that up to 70% of the waterborne PCBs in all of Lake Michigan have come from the Fox River, and will continue to circulate in the Lake for at least a hundred more years.  The PCBs have already led to many decades of fish-eating advisories for sport anglers and strict prohibitions against commercial harvest of many fish for market or restaurant sales all around Lake Michigan..
  • Discouraged Anglers --- For decades, thousands of discouraged anglers have stopped or never started fishing on the Fox River, Green Bay, or Lake Michigan, due to the PCB contamination.   The resulting economic losses could easily dwarf the losses experienced by currently active fishermen and the businesses (charter boats, baitshops, restaurants, hotels, gas stations, marinas, etc.) that depend on them.   The Service was too conservative in calculating damages based only on currently active anglers. 
  • Closed Commercial Fisheries --- Several species of river and bay fish are off-limits to commercial fishermen.  Many multi-generation family businesses have been forced to close, or have had serious financial losses. 
  • Discouraged Duck Hunters --- Duck hunters have also faced and will continue to face strict consumption advisories due to PCBs. 
  • Human Medical Costs and Lost Work --- The Service was not allowed by law to include economic losses due to human health effects.  Roughly 40,000 people along the waterfront face PCB cancer risks equal to smoking two to three packs of cigarettes a day, due to fish eating.  Non-cancer PCB risks (thyroid disease, diabetes, heart disease, liver damage, memory problems in adults, learning disabilities in children, etc.) may affect thousands more. A private civil action may be required to get compensation for citizens who believe they have been harmed by PCBs.  (see Human Health Risks from PCBs)
  • Lost Food Value --- Thousands of subsistence fishers and hunters (including low income and ethnic people) face major economic losses if they follow the fish advisories and are forced to purchase an equal quantity of store-bought fish and poultry.   Green Bay is one of the most productive estuaries in the entire Great Lakes region.   The grocery store value of the hundreds of tons of fish which could be produced annually is enormous. 
  • Dredge Disposal Costs -- Harbors and marinas face high maintenance costs due to disposal rules for PCB contaminated sediments dredged from shipping channels and boat slips.  The extra costs run into the millions. 
  • Drinking Water Costs --- Because the river and bay are polluted,  area communities rely on dwindling groundwater or expensive pipelines to Lake Michigan for drinking water supplies.   More than a billion dollars will be spent on pipelines alone (when longterm financing is included.)   Local water ratepayers are paying higher rates because the abundant water on our doorstep is unfit for drinking even after standard treatment.  At the same time, some of the same corporations, such as Georgia-Pacific, use high-capacity wells to draw down the public's groundwater supplies, adding further to home ratepayers' costs.
  • Swimming Impacts --- Popular swimming beaches are closed due to pollution.  People don't feel safe swimming in the Fox River or Bay, largely due to PCBs.  (A study with Rhesus monkeys found that 14% of PCBs spread on their skin was absorbed in 24 hours, according to the Wis. Division of Health.  See Dermal Absorption)   Local communities have been required to build costly artificial pools and water theme parks to compensate for the polluted condition of our natural river and bay beaches. 
  • Wildlife Damages --- The Service did not include damages to economic interests in lake trout, cormorants, terns, and other wildlife suffering deformities, tumors and reproductive failure.  Threatened and endangered species have been harmed and deserve additional habitat compensation above and beyond the human economic losses.   Bird-watching and other valuable wildlife enjoyment activities have been harmed, with significant  economic effects. 
  • Growth Factors ---  As human population grows over the next 20-40 years, the economic and social losses due to PCBs will also increase, until the PCBs fall to less harmful levels.   Brown County's population alone increased 14.5% in the last 10 years, and such growth should be factored into the economic damage equations. 
  • Property Damage --- Many waterfront homes, businesses,and public properties have been devalued for decades due to the PCB contamination. 
  • Non-adjacent Counties --- The Service estimated damages only for counties adjacent to the Fox River and Green Bay, and did not include PCB impacts on anglers, hunters, wildlife watchers, or businesses in other nearby (or distant) counties.   For example: a sporting goods store in Shawano County could have had significant losses over the years due to suppressed fishing and hunting due to PCB contamination.
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Fox River Watch is a project of

Clean Water Action Council
1270 Main Street, Suite 120, Green Bay, WI 54302 
Phone: 920-437-7304, Fax: 920-437-7326 
E-mail:  CleanWater@cwac.net

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