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Climate Progress

Shocking allegations against BP

At least one worker who was on the oil rig at the time of the explosion on April 20, and who handled company records for BP, said the rig had been drilling deeper than 22,000 feet, even though the company’s federal permit allowed it to go only 18,000 to 20,000 feet deep, the lawyers said.

That’s from a front-page story in the NY Times Tuesday with the mild headline, “On Defensive, BP Readies Dome to Contain Spill.”

The paper of record chose to publish this serious allegation of permit violation, but oddly didn’t lead with them.  And while reporting “BP strongly denied the claim that it was drilling deeper than was allowed,” the paper then drops this bombshell:

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Health

Massachusetts Insurance Regulator Reflects On The Challenges Of Implementing National Reform

Commonwealth Connector Authority Director Jon Kingsdale

Commonwealth Authority Director Jon Kingsdale

With 21 states suing the federal government over the constitutionality of health care reform and another 15 refusing to participate in the high-risk insurance pools, there is little to suggest that implementation will be any easier than the 15 month battle to pass health care reform. Nobody understands the importance and perils of implementation better than Jon Kingsdale, director of the Commonwealth Connector Authority. In today’s Boston Globe, Kingsdale outlines the lessons learned from implementing near-universal coverage:

1. It’s a campaign: In any successful campaign, continuous progress must be demonstrated and broadly communicated. In Massachusetts, we built partnerships with private and public groups, so that people heard and read about the law everywhere — at Fenway Park, in church, while shopping, or riding the subway. We launched this effort with the Red Sox, and held more than 300 educational forums across the state, the equivalent on a national scale of 15,000 outreach meetings. As a result, voter support for reform has remained high, ranging from 59 percent to 75 percent.

2. Adequate resources: The Massachusetts Legislature appropriately funded implementation with $35 million in the first year; the equivalent on a national scale would be $1.65 billion. Never were shortages of time, expertise, or resources allowed to stand in the way of meeting legislated deadlines.

3. Coordination: Somebody has to be on point to drive implementation across federal agencies and the other organizations needed to execute this undertaking. The Health Connector used multiple consultants and outsourcing strategies, while staffing up, to meet deadlines. With 50 states and far broader legislation, the federal effort will require a Herculean coordination effort.

4. Experiment and evaluate: This effort is new and not everything will go as planned. For example, running an exchange means offering customers what they want to buy, but that’s neither obvious nor unchanging. Massachusetts’ exchange is a learning organization. Key initiatives were launched as pilots, and we have not been afraid to revise them and try again.

5. Transparency: The biggest challenge Washington faces in “helping’’ Americans gain access to care is their distrust of government. Transparency is the antidote: making tough decisions in public; meeting endlessly with employers, unions, insurers, clinicians, and citizens; and both talking and listening out there, in at least 15,000 communities. These are essential to building trust.

6. Harness the market: State exchanges are essentially stores that sell insurance, combining government’s responsibility to protect consumers with a retailer’s need to serve customers. Brow-beating various industries may be good partisan politics, but the Health Connector has worked diligently at creating solid, long-term working relationships.

In other words, the get out the insurance enrollment campaign will probably be more important than the mandate penalties, Congress may have to appropriate more dollars for implementation, and lawmakers have to prepare for the reality that Congress can’t possibly “know enough to specify for every community, the exact design for care that is safe, effective, timely, patient-centered, equitable and sustainable.” They’ll have to allow regulators to experiment!

“The executive branch has 3 1/2 years to work with 50 very different states in bolstering popular support and executing effectively. That will require massive amounts of technical expertise and project management, combined with public outreach and creative communications,” Kingsdale writes, in what I suspect is a great understatement. But Kingsdale himself is not ducking the challenge. He has announced that he will step down from his position in June and while it’s unclear if he’ll come to Washington to lend his Massachusetts experiences to the national effort, he will likely remain an important source of “expertise.” You can read my earlier interview with him here.

Health

Medical Interests Spent $876 Million Lobbying Reform, Hospital And Pharma Come Out As Top Winners In Law

Roll Call is reporting that medical interests spent “more than $876 million in lobbying expenses during the 15 months beginning in January 2009 and ending in March, when Congress passed the sweeping overhaul” and were “responsible for one out of every five dollars doled out on lobbying during that period.” Here is a partial breakdown, according to the CQ MoneyLine analysis:

MedicalSpending2

While all of the health care interest groups won important concessions from the new law, none were more successful than the hospital industry, which negotiated an early deal with the Democrats “to provide $155 billion over 10 years to defray costs for uninsured Americans” and avoided more serious cuts. For example, currently the government pays about $45 billion dollars a year in DSH payments to help hospitals afford uncompensated care. Since health care reform will insure 34 million Americans over a 10-year period, the number of ‘uncompensated’ care cases will decrease by as much as 80%, but DSH payments will only be cut by some 15%.

As Thomas Scully, who ran CMS from 2001 to 2004, explained at a recent roundtable for Health Affairs, “That may not work out as well for inner-city hospitals with high levels of indigent care, but the bond prices and stock prices will tell you that most hospitals are winners, at least in this bill. Assuming there are no subsequent bills, hospitals are probably the biggest winners. They got hardly touched and got a lot of new money.” Hospitals are also protected from cuts under the Independent Payment Advisory Board through 2019 and can expect to net as much as $16 billion from “reimbursements for newly insured patients who would be covered under the overhaul plan.”

The pharmaceutical industry also did well, accepting approximately $80 billion in cuts, while holding off policies like direct drug negotiation and re importation, that would have resulted in higher loses.

Politics

Poll: Majority of Americans approve of Arizona law that they believe will result in racial profiling.

The new anti-immigrant Arizona law allows law enforcement officials to engage in a dragnet against people suspected of looking like undocumented immigrants. The law had to be amended because its original version was almost certainly unconstitutional. The revised law authorizes local and state law enforcement authorities — including the campus police — “to question those they suspect to be illegal immigrants and ask that they produce verification of their status.” A new NYT/CBS poll shows that “the public broadly agrees that the Arizona law will result in racial profiling, overburden local and state law enforcement agencies, and decrease illegal immigrants’ willingness to report crimes for fear of deportation.” Nevertheless, a slim majority of Americans still supports it:

image6456951

The poll also finds that a majority of Americans believe the nation’s immigration laws need to be “seriously overhauled” by the federal government.

Update

Editor’s Note: ThinkProgress has been experiencing problems with our picture uploads. If you’re not able to view the pictures, we apologize for the inconvenience. We’re working to fix this.

Economy

Bunning Calls For ‘Hard Limits’ On Bank Size — Will He Support The Kaufman-Brown Amendment?

Today, debate on Sen. Chris Dodd’s (D-CT) financial regulatory reform bill resumed in the Senate, with votes on amendments scheduled to begin tomorrow. The first amendment on the docket comes from Sen. Barbara Boxer (D-CA) and strictly stipulates that taxpayer funds can not be used to prop up a failed financial firm (which really just reinforces the resolution authority already in the bill).

Republicans used their time on the floor today to disparage the bill, in a preview of the rhetoric we can expect when debate over more contentious amendments comes around. Sen. Jim “tough sh*t” Bunning (R-KY) was no exception, as he employed the oft-repeated, but false, conservative meme that the bill preserves and institutionalizes bailouts. But Bunning then said that the bill should place “hard limits on the size of financial companies” and that banks in excess of the cap “must be forced to shrink”:

Decades of combinations have allowed a handful of banks to dominate the financial landscape. The four largest financial companies have assets totaling over 50 percent of our annual gross domestic product…I would rather take away the taxpayer protection for creditors of large firms and let the market determine their size. But if that is not going to happen, we should place hard limits on the size of financial companies and limit the activity of banks with insured deposits. Any financial company that are over those size limits must be forced to shrink. This will lead to a more competitive banking sector, reduce the influence of the largest firms, and prevent a handful of them from holding our economy and our government hostage ever again.

Watch it:

With his rhetoric, Bunning sounds a lot like Kansas City Federal Reserve President Tom Hoenig, who has said “I think [the biggest banks] should be broken up…And in doing so, I think you’ll make the financial system itself more stable. I think you will make it more competitive, and I think you will have long-run benefits over our current system.”

Bunning is correct that, as currently written, the bill does not place hard caps on the size of financial institutions (and, in fact, does not lay out capital requirements for the biggest banks either). But Bunning has the opportunity to rectify that, by supporting an amendment proposed by Sens. Sherrod Brown (D-OH) and Ted Kaufman (D-DE) that would impose a cap of 10 percent on a bank’s share of national deposits, limit non-deposit liabilities to 2 or 3 percent of GDP, and set a six percent leverage limit for bank holding companies and systemically risky non-banks.

To his credit, last month Bunning voted in the Senate Banking Committee for an amendment proposed by Sen. Bernie Sanders (I-VT) that would have broken up large financial firms. His stance contrasted with that of some of his Republican colleagues, who had paid lip service to breaking up banks, then voted against the Sanders amendment. So will Bunning continue to support breaking up big banks by voting for Brown-Kaufman? And since he also expressed a desire to “limit the activity” of banks with federally insured deposits, will he be supporting the Volcker rule? We’ll know once the debate gets rolling this week.

Climate Progress

AP: Calling deadly Tennessee superstorm an “unprecedented rain event” did “not capture the magnitude”

Plus Dr. Jeff Masters on the link to warming (and USGS myopia)

Tennessee Gov. Phil Bredesen called it an “unprecedented rain event,” but that statement did not capture the magnitude. More than 13 inches of rain fell in Nashville over two days, nearly doubling the previous record of 6.68 inches that fell after Hurricane Frederic in 1979.

“That is an astonishing amount of rain in a 24- or 36-hour period,” Bredesen said Sunday.

Don’t worry, anti-science disinformers who try to shout down any talk of a link between climate change and extreme weather, the AP/WashPost story never mentions global warming.  Indeed, I couldn’t a single story on the superstorm that did.

Not that there were that many stories on the deluge at all given 1) the other mega-stories of the weekend and 2) the fact this didn’t occur on one of the coasts where Big Media lives.

But the fact that this superstorm blew away rainfall records set from the remnants of a hurricane three decades ago bring to mind Weather Channel expert Stu Ostro’s discussion of Georgia’s record-smashing global-warming-type deluge.  Of course, Ostro pointed out there was no way to know if global warming had “caused” the record floods, but

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Yglesias

Endgame

Glad as I can be:

— I don’t buy the China pessimists’ arguments but I worry I may have irrational exuberance that I’m trying to keep in check.

— Progress and crisis.

— I like that Jeffrey Miron pretends not to know anything about systemic risk, “runs” on banks, market confidence or any other relevant issues.

— New Yorkers displaced to DC are good at whining about the bagel situation.

— Bush administration refused to brief congress about growing financial chaos until it was too late.

Feist covers “Nothing in The World Can Stop Me Worrying About That Girl”.

Climate Progress

Energy and Global Warming News for May 3: Offshore wind update; Social media and the spill

Offshore Wind update

An environmental permit granted last week for the Cape Wind power project is not the last hurdle facing the most advanced offshore wind farm proposed for the United States. However, wind power technology developers and analysts express confidence that the nine-year-old offshore wind project will get built, and that more like it will dot U.S. coastal waters by 2020.

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Politics

Speaking At Trade Association Funded By BP, Gov. Perry Claims Rig Disaster Is An ‘Act Of God’

http://thinkprogress.org/wp-content/uploads/2010/03/bushperry.jpgEarlier today, the U.S. Chamber of Commerce, which is funded by dues-paying corporations like BP and Halliburton, hosted a “Free Enterprise” conference to push deregulation and anti-tax policies. During a press availability after the morning session, a reporter raised the point that the oil rig disaster, the Massey mine disaster, and the overall financial crisis seemed to have all occurred as a result of too much free enterprise and not enough regulations. Gov. Rick Perry (R-TX), one of several governors in attendance, lashed out at the reporter and said regulations would not have prevented the economic collapse.

Later in his response, Perry said he feared a “knee-jerk reaction” to the oil spill, and said the oil spill could be just another “act of God that cannot be prevented“:

“We don’t know what the event that has allowed for this massive oil to be released,” Perry said alongside several other governors on a panel Monday. “And until we know that, I hope we don’t see a knee-jerk reaction across this country that says we’re going to shut down drilling in the Gulf of Mexico, because the cost to this country will be staggering.” Perry questioned whether the spill was “just an act of God that occurred” and said that any “politically driven” decisions could put the U.S. in further economic peril. “From time to time there are going to be things that occur that are acts of God that cannot be prevented,” Perry said.

As Climate Progress’ Joe Romm has noted, BP cut corners by violating numerous safety regulations and refused to install “a remote-control shutoff switch that two other major oil producers, Norway and Brazil, require.” In fact, the Chamber, which is one of BP’s many trade associations and lobbying fronts, has worked aggressively to oppose regulations and fight for more offshore oil drilling.

“Project No Project,” a lobbying initiative of the Chamber, fights environmental and safety regulations as job killing “red tape.” Project No Project has attacked environmental and safety concerns levied against BP’s proposed liquefied natural gas plant on Pelican Island, near Galveston, Texas.

Update

Tony Hayward, the chief executive of BP, said to fellow executives in his London office recently, “What the hell did we do to deserve this?


Update

,Perry tried to walk back his comment, later saying that he suspects a “mechanical failure” was the cause.


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