Obama Introduces Oil Spill Recovery Bill, Won't Pinpoint New Cap On Economic Damages

The White House is sending a comprehensive legislative proposal to Capitol Hill that is designed to help abate the economic, climate and even nutritional impact of the massive oil spill in the Gulf Coast.

On Wednesday, administration officials unveiled a bill that will provide funding for further safety inspections at oil rigs, granted unemployment assistance for those hurt or displaced by the spill, gave money for environmental studies related to the oil damage in the Gulf and even expanded nutritional assistance to those affected.

The flashiest element of the legislation, however, and the one that sparked the most questions, included a provision to raise the liability of oil companies responsible for catastrophic spills. In a fact sheet sent to reporters, the administration called for a raise in "the statutory expenditure limitation for the Oil Spill Liability Trust Fund from $1 billion to $1.5 billion." This, in short, would provide more money to handle the immediate coasts of coping with a spill disaster.

The White House's bill also would raise the cap on natural resource damage assessments and claims from $500 million to $750 million -- in essence, giving more funds for environmental clean-up.

But with respect to the current cap on economic damages, the administration was vague. Rather than raise the current cap of $75 million to a higher figure (Sen. Robert Menendez wants the cap raised to $10 billion), the White House declined to reveal a numerical preference.

Continues @ Huffington Post

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Why cap it at all!  Well, that's a rhetorical question! LOL Yes, we do not want to cap it. We want the oil explorers who mint money off the extraction business to also bear the cost of clean up... not hit the taxpayers with it.