In testimony today before the House Committee on Transportation and Infrastructure, Congresswoman Kathy Castor told members that Florida’s businesses are suffering as a result of the Deepwater Horizon oil disaster and urged Congress to eliminate the liability cap on oil companies.

 

 

“This has demonstrated what the true risks are, and they are enormous,” Castor said.

“The $75 million cap now in effect, and all that BP is legally required to pay for economic damages above and beyond clean-up costs, is a drop in the bucket compared to what it will take to restore the Gulf Coast,” Castor continued. “We must bring a comprehensive bill to the floor to protect the American people. We must work together to take swift action to update this outdated law and lift the liability caps on oil drilling companies like BP.”

 

Castor, a co-sponsor of the Big Oil Bailout Prevention Act introduced by Rep. Holt, said the legislation would guarantee that BP and other oil companies are held responsible for paying economic damages resulting from spills. The legislation would raise the cap from $75 million for economic damages to $10 billion.

 

Castor was invited to testify at today’s Transportation and Infrastructure committee hearing because of her leadership on oil drilling issues and her work to keep drilling far from Florida’s shores. Last month, she introduced the Florida Coastal Protection Act, which would permanently prohibit oil drilling, leasing, preleasing and any related activities off the Florida coast.

 

Last week, Castor held a roundtable at the TradeWinds Resort on St. Pete Beach to hear from local tourism and environmental leaders about the impact of the oil disaster. Restaurant owners, fishing boat captains and hotel owners told her about the business they are losing as a result of the oil disaster – even though oil has yet to reach the shores of the West Coast of Florida. Fishing boat Capt. Travis Palladino, for example, told Castor about canceling 60 charter boat trips because of the oil disaster. Patricia Hubbard, whose family is involved in the restaurant and marina industries, told Castor about the struggles of staying open for business.

“Dealing with this oil disaster is nothing like anything Floridians have ever encountered,” Castor told the Transportation and Infrastructure committee today. “Those of us living on the Gulf Coast will be living with this for years and years to come.”

 

 

Later in the day Wednesday, Castor met in her office with BP Executive Vice President David Nagel and Ray Dempsey, BP’s vice president of strategy. Castor insisted that they lay the groundwork for a larger settlement with the state of Florida. She also urged BP to direct $100 million to Florida university researchers to study the ecological impact of the Deepwater Horizon disaster. BP has pledged $500 million for academic research. Florida’s universities, including the University of South Florida, need additional funding to continue their data collection and analysis.

 

Castor also spoke to Nagel and Dempsey about funding the state of Florida’s emergency bridge loan program to help small businesses secure short-term emergency funds and shoulder the economic fallout resulting from the oil disaster. As pointed out by CFO Alex Sink yesterday, this may be the most efficient and effective way to get money directly to Floridians in need. The fund is already set up, the rules of the program are in place and the administrators are ready to provide loans.