House white to on asks lift spill liability cap oil congress

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thewhitehouseaskedcongresswednesdaytoliftliabilitycapsonoilcompanies,increasetheexcisetaxthatfinancescleanupsandprovide$118millioninemergencyspendingtohelpdealwiththeongoingoilspillinthegulfofmexico.Thelegislativerequestcomesnearlyfourweeksafteranoilrigleasedbybpexplodedapril20andsankoffthelouisianacoast.Whitehouseofficialsinsistedthatbp,whichleasedthedeepwaterhorizonrigfromtransoceanltd.,Willrepaythegovernmentforthemajorityoftherequestedemergencyspending,muchofwhichwouldgotounemploymentaidforaffectedworkersandhelpforcommunitiesonthegulfcoast.Someofthespending,suchasfundingforadditionalinteriordepartmentinspectionsofotheroilwells,wouldnotbereimbursed.Thewhitehousestillneedstohashoutdetailsofthepackagewithcongress,particularlyregardingitsproposedchangestotheoilspillliabilitytrustfund,whichwascreatedbycongressafterthe1989exxonvaldezspillandiscurrentlyfinancedbyan8cents-per-barrelproductiontaxontheoilindustry.Thewhitehouseisproposingtoraisethe$1billion-per-incidentcaponclaimsfromtheoilspilltrustfundto$1.5billion,andtolifta$500millioncaponnaturalresourcedamageclaimsto$750million.Toensurethatbpisonthehookforeconomicdamagesfromthespill,thewhitehousewantstoretroactivelyraisethecurrent$75millioncaponeconomicdamages--athresholdthatexpertssaywillbepassedeasilyinthiscase.Butwhilesens.Robertmenendez,d-n.J.,Andbillnelson,d-fla.,Haveproposedraisingthatcapto$10billion,thewhitehousedidnotproposeaspecificnumber.Wellworkwithcongressondeterminingwhatthatnumberwillbe,saidcarolm.Browner,thepresidentscoordinatorofenergyandclimatepolicy.

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