Competing State and Federal NRDA Compensation Plans
NRDA compensation plans
NRDA compensation plans
Comparison of Competing NRDA
Compensation Plans
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NRDA compensation plans

NRDA compensation plans

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NRDA compensation plans

Prior to the Bush Administration assuming control, we saw a stark contrast between the state and federal approaches to the Natural Resources Damage Assessment and compensation processes.

State officials repeatedly said they opposed the very concept of compensation, and preferred to reserve all funds for cleanup costs only --- as if the polluters could not afford both.  (see The Corporations Can Afford It.)   Essentially, they opposed basic law enforcement and restitution for the victims of pollution.

Now that Bush is in control, the federal government has abandoned the principles outlined in this comparison factsheet written in 2000.   State DNR staff have said, "We're not following the federal plan."  The federal government and tribes seem to simply sign-on to the state's initiatives now, ignoring the 8-year, $10 million federal NRDA research results.
 
STATE OF WISCONSIN

(Last year's settlement,
not finalized)

U.S. FISH and WILDLIFE SERVICE, STATE OF MICHIGAN, 
NATIONAL OCEANIC and ATMOSPHERIC ADMINISTRATION (NOAA), and the ONEIDA, MENOMINEE, and LITTLE TRAVERSE BAY BAND of 
ODAWA INDIANS.

(Last year's position
plus changes this year.)

Settled for $7 million from Georgia Pacific’s Fort James Mill (which released 22% of the PCBs).   If all 7 companies settle at the same rate, this means Wisconsin would receive only $32 million in total compensation from 7 companies, in spite of the state’s weak economic analysis showing the public suffered $70 to $190 million in damages. Proposed final compensation would range from $176 to 333 million, depending on how aggressive the sediment cleanup plan is.  These are conservative economic figures.
 
 

 

Addresses only Wisconsin resources. Addresses federal, Wisc., Michigan and Tribal resources.
Claims that only the state government has jurisdiction over vast majority of natural resources within the state’s borders.  (Attempts to exclude most tribal and federal rights.) Acknowledges shared jurisdiction between the states, federal government and tribes.
 

 

Official NRDA process started in 1998, after surprise 1997 cooperative agreement signed with 7 companies. Official NRDA process started in 1994, after several years of trying to convince the state to join them in a joint NRDA effort.
Planning and consultants paid for by 7 companies who dumped PCBs. Planning and consultants paid for by federal, state and tribal governments.
Consultants chosen by 7 companies. Consultants chosen by governments.
Consultants have history of representing corporate interests.
 

 

Consultants and agency experts have history of representing primarily government and public interests.   A few have mixed histories of working for both corporate and government interests.
Key consultants have conflict of interest, financial ties to one or more of 7 companies.
 
 

 

Key consultants and agency experts have no 
conflicts of interest.  (But now, the head of the U.S. Dept. of Interior, controlling U.S. Fish & Wildlife Service, and the head of the U.S. Dept. of Justice, are both pro-corporate and anti-environmental.  (see Corporate Takeover)
No public meetings to explain the release of 4 key documents.   (1997 Agreement, 1998 Preassessment Screen, 1999 NRDA plan, or 2000 Settlement with Fort James) Several public meetings held following release of many of 14 key documents and major reports, over a period of 3 years.
No public hearings were held on any stage of state NRDA process, despite repeated public requests for hearings. Five public hearings were held last fall in Oshkosh, Appleton, Green Bay, Sturgeon Bay, and Escanaba, on the final compensation proposal.
Settlement consent decree with Fort James (Georgia Pacific) was signed before any public comment period opened.   Citizen comments may be meaningless.

 

Plan won’t be finalized until the EPA issues a “Record of Decision” on the final river sediment cleanup plan, sometime later this year, after citizen comments have been considered.   (The federal partners have broken this promise, and are going along with the state's backwards order.)
The public and news media were unaware that a settlement was near, so it was a surprise.  The U.S. Fish & Wildlife Service says no federal settlement is possible until after the plan is finalized.   (The federal partners have broken this promise.)
The public was led to believe that DNR would  issue a proposed detailed NRDA plan, and economic assessments, and take public comments (as is normal under the NRDA law) before any settlements would occur.
 

 

The U.S. Fish & Wildlife Service is following the federal NRDA process in detail, and released their final proposed “Resource Compensation Determination Plan” as expected last fall, followed by a public comment period and several hearings.  (Since Bush was elected, the federal partners have deviated from the formal process several times.)
Bulk of settlement dollars used for human recreation projects, rather than wildlife or habitat. 
 

 

Bulk of settlement dollars used for wetlands and wildlife habitat, non-point (runoff) pollution control, and only a small percentage for human recreation projects, based on public preference surveys.   (The federal partners have broken this promise.)
Fort James settlement funds will be used for recreation projects in the near Green Bay area, with remaining 14% used for wetland purchase in Peshtigo.  No funds would benefit Door County or other bay areas impacted by PCBs.

 

Settlement funds would be used for critical habitat and other projects all along the Fox River and Bay, including Door County, Oconto County, Marinette County, and bayshore areas of the Upper Peninsula of Michigan --- all areas damaged by PCBs.   (The federal partners have broken this promise in the G-P settlement.)
Economic damages assessed using “revealed preference” analysis --- focuses on options people actually choose, such as how far they drive to fish in clean water instead of contaminated sites.
 
 
 
 
 
 

 

Economic damages assessed using “stated preference” analysis --- focuses on options people say they prefer, such as valuing toxic cleanups over new boat ramps.  Because the river and bay have been polluted for decades, economists couldn’t measure the difference between actual fishing activity before and after the PCB contamination.  Therefore, they estimated the economic value of current and some potential fishing activity based on public preference surveys.  (The federal partners  are settling for only 20% of their promised amount.)
Estimated value of recreation lost by anglers due to fish-consumption warnings since 1980.
 

 

Estimated value of recreation lost by the public due to fish-consumption warnings since 1976, and total losses due to all PCB injuries to fish, birds, and water in the future.  (The federal partners have abandoned this formula.)
DNR surveyed anglers in the eastern two-thirds of Wisconsin, including many inland lake anglers who don’t fish on the Fox River or Green Bay. U.S. Fish & Wildlife Service surveyed lower Fox River and Green Bay anglers.  Also randomly surveyed residents of a 10 county area near Green Bay and the Fox River.  (The federal partners have ignored the damage data gathered from this effort.)
DNR credits Fort James with providing $55 million in economic benefits for only a $7 million investment, using projections of increased economic activities as a result of the recreational investments. Service proposals are firm investment figures, not based on multiplier factors.  The federal experts do not agree that Fort James’ $7 million settlement is worth more than $7 million.  (The federal partners have abandoned these positions.)
DNR argues that settling early and low will prevent litigation and delays.
 
 
 
 
 

 

The federal, tribal and Michigan governments are more likely to be stuck in litigation and delays because the state’s settlement undercuts their efforts.  (It’s very likely the state settlement will end up in court anyway, unless they settle for extremely small amounts.  But then they risk citizen suits.)  (The state process is now prevailing, but lawsuits are still possible.)
DNR is pursuing their individual NRDA settlements, regardless of the wishes of all the other governments.
 
 
 
 
 
 
 

 

The federal, tribal and Michigan governments feel a unified bargaining effort would be stronger, more successful, and less likely to result in litigation.   Therefore, they work cooperatively to address all trustee concerns and settle their differences privately before issuing unified proposed plans or starting unified negotiations.  (It appears the feds have become so cooperative, they might as well be sleeping.  They're letting the state ignore all the federal NRDA research --- about $10 million worth.)

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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

NRDA compensation plans
NRDA compensation plans NRDA compensation plans
NRDA compensation plans NRDA compensation plans

CONTENT BY: Rebecca Leighton Katers
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