Regulators impose fines on chemical and energy companies that violate environmental regulations. What happens to the money once it is paid?
Floodlight, a nonprofit news agency, asked the question and came up with a disappointing result. Some of the money ends in the hands industry groups that support fossil-fuel production.
Fossil fuel production should be encouraged. It is essential for the survival of our nation. We will continue to require it for many years. Fines for doing wrong things should not be paid to industry support groups. It is counterproductive to the purpose of the fine which is intended to be a deterrent and punishment for repeating the same mistake.
According to Floodlight’s Texas Tribune story, here’s how it works. For example, a toxic spillage at a chemical plant. The Texas Commission on Environmental Quality investigates and assesses the case. The chemical company has two options: pay the fine to TCEQ or transfer the money to a group listed on a state-approved list.
The TCEQ maintains a list of “supplemental environmental projects”, which are environmental cleanup projects that comply with the commissions standards. The current list includes replacing old school buses by cleaner models; holding events to collect hazardous household rubbish; conserving a wetlands; preventing erosion; among other things. All of these projects will result in cleaner air, water, and a better habitat for wildlife.
So how did Texas Natural Gas Foundation get on the list with a project that reimburses public entities for swapping out decommissioned diesel vehicles with natural gas vehicles? This type of swap reduces air polluting, but it doesn’t seem to be in line with the program’s spirit. While other projects involve monitoring water quality and planting trees for example, the natural-gas project ultimately expands the natural gas market.
The natural gas project is not comparable to school bus improvement projects. This is because school bus upgrades must be made for vehicles currently in use. The natural gas project targets decommissioned vehicles that are no longer in regular service.
We don’t mean to be critical of the supplemental environmental program program as a whole. It’s a great idea for supporting local initiatives to improve water and air quality. We ask the TCEQ, however, to tighten its standards to prevent projects that directly support fossil fuel markets. If the TCEQ is willing to pay fine dollars to groups that promote environmental remediation, that’s okay. However, fines paid by companies should first go to the state and then be distributed.
It is not enough to just reduce emissions to be eligible for this program. Texans must feel confident that if a company causes harm to the environment, they will pay the fine. Texans should feel secure that their environment regulators are protecting them.
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