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AFTER KATRINA New Solutions for Safe Communities and a Secure Energy Future Authors Kaid Benfield, Sarah Chasis, David Doniger, Albert Huang, Roland Hwang, Rich Kassel, Deron Lovaas, David McIntosh, Erik Olson, Christopher Paine, Brad Sewell, Patrice Simms, Gina Solomon, Nancy Stoner, Greg Wetstone, Wesley Warren, Karen Wayland Natural Resources Defense Council September 2005

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Page 1: After Katrina: New Solutions for Safe Communities › sites › default › files › hk.pdf · AFTER KATRINA New Solutions for Safe Communities and a Secure Energy Future ... People

AFTER KATRINA

New Solutions for Safe Communitiesand a Secure Energy Future

AuthorsKaid Benfield, Sarah Chasis, David Doniger, Albert Huang, Roland Hwang,Rich Kassel, Deron Lovaas, David McIntosh, Erik Olson, Christopher Paine,Brad Sewell, Patrice Simms, Gina Solomon, Nancy Stoner, Greg Wetstone,Wesley Warren, Karen Wayland

Natural Resources Defense CouncilSeptember 2005

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ABOUT NRDCThe Natural Resources Defense Council is a national nonprofit environmental organization with more than 1.2million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists haveworked to protect the world’s natural resources, public health, and the environment. NRDC has offices in NewYorkCity, Washington, D.C., Los Angeles, and San Francisco. Visit us at www.nrdc.org.

NRDC President: John AdamsNRDC Executive Director: Frances BeineckeNRDC Director of Communications: Phil GutisNRDC Director of Media Relations: Jon CoifmanNRDC Reports Manager and Editor: Alexandra KennaughProduction: Bonnie Greenfield

Copyright 2005 by the Natural Resources Defense Council.

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Executive Summary iv

Chapter 1: Stopping Immediate Public Health Threats from Hurricane Katrina’s Toxic Fallout 1

Conduct Immediate Testing for Toxic and Biological Hazards 1People in New Orleans and the Gulf Coast Are Exposed to Toxic Fallout Immediate Actions to Reduce People’s Exposure to Toxics

Restore Safe Drinking Water and Sewage Services Immediately 4Damaged and Destroyed Drinking Water and Sewage Services Threaten Public Health Immediate Actions to Restore Safe Drinking Water and Sewage Services

Maintain A ‘No Excuses’ Cleanup Policy with Strong Safety and Health Standards 6Key Reasons Not to Authorize Sweeping Waivers

Fix Gaps Exposed in Nation’s Disaster Preparedness and Response 7

Chapter 2: Building a Secure, Lasting Future for the Gulf States—and the Nation 9

Restore Natural Coastal Buffers and Build in a Safe, Sustainable Way 9Coastal Wetland Erosion Exacerbates Flooding Stemming Wetlands LossBuilding Healthier, More Sustainable Neighborhoods

Ensure No Community Disproportionately Suffers from Pollution 12Environmental Justice Issues Are Rife in New Orleans and Storm-Pounded AreasReducing Environmental Injustices

Protect American Consumers from Disaster-Related Energy Price Spikes 14Oil Markets Were Tight Before KatrinaA Cleaner, More Effective Path to Economic Security

Curb Global Warming or Face Ever More Intense Natural Disasters 16Global Warming Can Lead to Stronger Hurricanes Recommendations for Curbing Global Warming

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CONTENTS

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Hurricane Katrina exposed shocking holes inboth our social fabric and our security safety

net when she tore through the Gulf Coast. The stormalso carried important lessons about management—or mismanagement—of essential health and environ-mental safeguards.

Hurricanes are a fact of life on the Gulf Coast,and, invariably, some turn deadly. But decisionsmade by policymakers and elected officials havetremendous influence on our ability to absorb astorm’s brute force.

Their choices will also determine how quickly andhow well communities cope with Katrina’s environ-mental fallout, and whether low-income people ofcolor will suffer as disproportionately in the aftermathas they did in the storm itself.

A century of poor planning and industrial abusehas stripped away much of the Gulf Coast’s naturalprotection against storms and flooding. More than1 million acres of coastal wetlands in Louisiana havebeen drained, lost to development, or starved of theMississippi River sediments they need to survive.These wetlands could have absorbed storm surgeand floodwaters, substantially reducing the storm’simpact. When the storm came ashore, it swampedaging, underfunded drinking water and sewagesystems and hit more than 60 major industrial facili-ties and four Superfund waste sites hard in NewOrleans alone, adding unknown toxins to the stinking,toxic flood.

Katrina caused nine oil spills totaling more than7 million gallons, together ranking as one of thebiggest U.S. spills in history. By contrast, the priceshocks still rippling though the oil markets are notultimately of Katrina’s making. Rather they are dueto soaring energy demand caused by years of officialrefusal to tackle our nation’s energy dependence bydiversifying our energy sources and improving fueleconomy performance standards.

Fixing these problems will make Gulf Coast com-munities safer and more secure and reduce the long-term cost of coping with the disaster. Lessons fromKatrina will pay dividends in other regions subject toextreme weather disasters as well.

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EXECUTIVE SUMMARY

Planning for a ChangeThe Natural Resources Defense Council (NRDC)has assembled a team of its best experts on publichealth, toxic waste, urban design, coastal protection,energy security, and global warming to present a setof policies and practices to protect the safety andwell-being of Gulf Coast residents—today, duringthe recovery, and onward into a healthier, moresustainable future.

Protect Gulf Coast Communities from Toxic andBiological HazardsThe Environmental Protection Agency (EPA), theCenters for Disease Control and Prevention, andindependent experts should immediately broadentoxicity testing of water, sediments, and soils. Imme-diate widespread testing of water, sediment, anddried mud is critical to ensuring the safety of cleanupworkers and returning residents, and for identifyingtoxic hot spots for containment and cleanup. Bigindustrial facilities, Superfund sites, and other toxichotspots should be catalogued and evaluated, andany dangerous releases contained immediately.Immediate public disclosure of all information isalso critical.

Quickly Restore Safe, Clean Drinking Water SuppliesMore than two weeks after Hurricane Katrina hitland on September 17, 2005, 186 public water treat-ment systems in Louisiana and 229 in Mississippiwere seriously compromised, completely out ofcommission, or unaccounted for; and 172 sewagetreatment plants were not fully functioning. Hun-dreds more in Louisiana, Mississippi, and Alabamawere operational but expected to need repair orreconstruction. New Orleans’ drinking water systemwas completely knocked out but has started pump-ing non-potable water in some areas for fire control.All told, at least 2.4 million people were without accessto safe drinking water and bacteria levels in flood-waters greatly exceeded public health standardsshortly after Katrina. All these systems will needfinancial and technical assistance to get back intofull, safe operation.

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Restore Natural Coastal Buffers to ProtectAgainst StormsNatural coastal barriers on the Gulf have nearly beendestroyed by decades of industrial misuse and govern-ment-sponsored re-engineering gone awry. We mustadopt a major coastal wetland restoration program inthe wake of Katrina to build back what we ourselvesdestroyed. It is also critical to ensure that flood controlprojects ordered by Congress and developed by theArmy Corps of Engineers are prioritized to protectpopulation centers and serve legitimate flood controlpurposes, not the call of pork-barrel politics.

Rebuild for a Safe, Secure, Sustainable FutureNow is a chance to restore New Orleans’ 19th centuryelegance using today’s know-how and technology.That means energy-efficient, weather-resistanthousing designed according to voluntary federalstandards that save money and improve comfort forpeople who live there, no matter what their income.And it means family-friendly, mixed-use, mixed-income walkable communities like many affectedareas had in earlier days.

Maintain Health and Environmental SafeguardsLobbyists and their congressional allies are alreadylining up hoping to undercut long-standing health andenvironmental safeguards in the name of hurricanerecovery. In a few select cases, it may make sense tomake temporary accommodations in federal health andenvironmental rules to address legitimate needs. Butnearly all of these can be accommodated withoutchanges in current law, much less the blanket suspen-sion legal safeguard being proposed by special interests.

Repair the Racial and Economic Inequity of Healthand Environmental RiskEnvironmental injustices have long plagued NewOrleans and the Gulf Coast region. Cleanup efforts

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should adhere firmly to the standing Federal Execu-tive Order designed to ensure environmental justicefor communities of low income and color that areexposed to inequitable amounts of toxic pollution.In the rebuilding process, local governments’ exer-cise of eminent domain powers should not be usedto take properties in low-income communitiesof color.

Permanently Protect American Consumers fromEnergy Price SpikesIn the wake of Katrina, oil and natural gas priceswere skyrocketing. Although the worst of the panic-induced run-up has abated, prices remain extremelyhigh and experts are predicting a painfully expensivewinter heating season. We cannot drill our way toenergy security. The only real solution is to reducethe amount of energy we need to keep the economyhumming. That means stronger fuel economy stan-dards and rules requiring more efficient heatingand air conditioning equipment and other energyconservation technologies.

Prevent the Added Threat of Global WarmingGlobal warming didn’t cause Katrina. But expertsagree the warming climate caused by heat-trappingpollution is adding fuel to tropical storms—elevatingcategory 3 storms into category 4 and so forth. Hotterclimate also means more flood risk due to risingsea levels. There is growing bipartisan support inCongress and many states for concrete, market-basedlimits on global warming pollution.

Decisions made by policymakersand elected officials have tremendousinfluence on our ability to absorb astorm’s brute force.

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Hurricane Katrina has been, first and foremost,a human disaster—a seemingly endless tale of

suffering marked by lives lost, communities dispersed,and families torn asunder. NRDC is doing all that wecan to aid the ongoing relief effort in the Gulf states.We are contributing our expertise on toxic pollution,oil spills, and drinking water in order to help meet theimmediate challenges, and we are urging our nationalleaders to make sound policy decisions for a betterlong-term future instead of hasty responses that,although temporarily convenient, could have signifi-cant prolonged health effects for the very communitieswe are all trying to help.

CONDUCT IMMEDIATE TESTING FORTOXIC AND BIOLOGICAL HAZARDS

People in New Orleans and the Gulf CoastAre Exposed to Toxic Fallout The catastrophic flooding in New Orleans andother parts of the Gulf Coast has released significantamounts of toxic substances that are having—andwill continue to have—a profound impact on publichealth. These toxins come from major oil and chemicalplants, tank leaks and spills, household and commer-cial chemical supplies, submerged automobiles andother petroleum-fueled equipment, commercialbusinesses such as auto shops, and overwhelmedsewer systems. More significantly, over the long term,

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CHAPTER 1

releases from many of these sources threaten large-scale contamination of surface water, drinking water,sediments, and soils throughout the region and couldcompromise air quality.

� Federal officials identified at least nine oil spillsof 10,000 gallons or more and 35 smaller spillsresulting from Katrina, which have dischargedmore than 7 million gallons of oil into the lowerMississippi tributary streams, lakes, and surround-ing wetlands.1

� There are scores of chemical plants, petroleumrefineries, and toxic waste dumps and handlers inthe Louisiana parishes most affected by hurricaneKatrina. (See map, page 2.)2

� At least one Superfund site completely submergedin the New Orleans floodwaters, as did many othersites with hazardous materials on-site.3

� The Environmental Protection Agency’s (EPA) pre-liminary testing of New Orleans floodwater confirmsthe presence of extreme contamination from over-whelmed sewage systems, with total coliform orE. coli levels up to 75 times the level the EPA identifiesas safe for human contact.4

As contaminated floodwaters recede, the remainingsoil will be covered with, and permeated by, thesetoxic materials, creating a potential public healthcrisis for any former residents who return to the area

STOPPING IMMEDIATEPUBLIC HEALTH THREATSFROM HURRICANE KATRINA’STOXIC FALLOUT

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before a comprehensive cleanup has occurred; and itis unclear at this point whether an adequate cleanupis being planned. Once the mud dries, contaminatedmaterial will likely become airborne dust, spreadingthe risk even more.

Cleanup workers could face serious occupationalhealth concerns and unknowingly be exposed toany number of toxic contaminants. Just as manyresponders at the site of the 9/11 attacks wereheavily exposed to toxins as they sifted throughand cleaned up the rubble, those on the front lines

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Natural Resources Defense Council After Katrina

in New Orleans will be exposed to significant healthrisks if they are not provided with adequate pro-tective equipment.

Disposal of the debris, including thousands ofruined vehicles, trucks, homes, and other structures,will present an enormous challenge. In the sixhardest-hit counties in Mississippi alone, the debrismay produce more than six times the solid wastethat the entire state generates in a year.5 Hazardousmaterials are interspersed with this waste. And thereare reports that the U.S. Coast Guard is considering

Lake Pontchartrain

LakeCataouatche

Six Mile Lake

Des Allemand

Mississippi RiverSix Mile Lake Lake Lery

Bayou Lery

Big Magill Bayou

Bayou Mercier

Big Mar

Stream Stream

Menteur Pass

Intracoastal Waterway

New Orleans

Chalmette

Kenner

Metairie

River RidgeJefferson

WestwegoMarrero

Estelle

HarveyTerrytown

Timberlane

Gretna

TOXIC HAZARDS IN AREAS AFFECTED BY HURRICANE KATRINA, NEW ORLEANS, LOUISIANA

Water systemsHazardous waste handlersToxic Release Inventories facilitiesHazardous waste sitesFlooded areasOther damage

N

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FEMA had geographic data documenting damage by Hurricane Katrina in 13 counties in Alabama, Louisiana and Mississippi as of Aug 31, 2005. This area contains 152 Toxics Release Inventory facilities, 29 of which disposed of 38.8 million pounds of toxic waste on-site in 2003 alone, and 64 hazardous waste sites, including seven Superfund sites. There are also 324 water systems serving 2.4 million people in the 13 affected counties. The map shows proximity of hazardous waste handling facilities, hazardous waste sites, and Toxics Release Inventory facilities to areas where FEMA had documented hurricane damage as of Aug 31, 2005. Map shows only New Orleans and its environs and only those water systems serving more than 5,000 people. At the time this map was made, FEMA’s geographic data was still in progress. Source: U.S. EPA, FEMA

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Natural Resources Defense Council After Katrina

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A small dog covered in oil wasfound wandering as cleanupcrews worked to recover oil froma ruptured Murphy Oil, USA refinerytank in a Chalmette, LA, neighbor-hood, September 6, 2005. Nearly820,000 gallons of oil spilled,spreading into the neighborhoodadjacent to the refinery and mixingwith receding floodwater fromHurricane Katrina.

burning much of the material.6 The air pollution fromsuch burning—particularly the burning of plastics andother toxic materials—could present enormous healthhazards to nearby residents.

Immediate Actions to Reduce People’s Exposureto Toxics � The EPA, the Centers for Disease Control andPrevention, and independent experts should conductwidespread toxic chemical testing of water, sediments,and soils, and should monitor exposure of firstresponders and cleanup workers. All test resultsshould be shared with the affected public.

The challenge is to ensure an open and honest dia-logue regarding the true extent of the contamination ofgroundwater, drinking water, sediment, and soils. Thepublic must be fully informed every step of the wayregarding the nature and degree of the contamination,the planning and response of the relevant governmententities, and the potential health consequences associ-ated with exposure to contaminated sites, structures,and other resources.

Cleanup and rebuilding efforts must ensure thatthe burden of exposure to toxic releases does not fallon minority and underserved communities in the GulfCoast region, particularly New Orleans, that already

have suffered disproportionate hardship in the wakeof Hurricane Katrina.

� The EPA should immediately identify, evaluate,

and contain toxic hot spots, such as major industrial

facilities and Superfund sites.

The responsible government agencies—along withlocal citizens and experts—must initiate and followthrough with a comprehensive assessment of theenvironmental damage from toxic releases and poten-tial toxic exposures. They must plan and completeremedial action that is adequate to protect publichealth in both the short and long term. This mustinclude comprehensive initial and ongoing surfacewater, groundwater, drinking water, sediment, andsoil monitoring, and specific planning for adequateremedial measures.

For example, structures inundated with crude oilor other chemical contaminants may need to be razed,and land that is permeated with such contaminantswill remain uninhabitable until remediation occurs,which would require removal of the contaminated soil.Failure to act will threaten responders and returningcitizens, and will substantially increase long-termcleanup costs as toxins spread to larger areas andbecome more expensive and difficult to clean up.

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Planning must also include biomonitoring andappropriate protective equipment specifically forthe workers who perform cleanup activities in closeproximity to contaminated sites, as well as for return-ing residents, who will ultimately live, work, play, andgo to school in the areas affected by the toxic fallout ofHurricane Katrina.

RESTORE SAFE DRINKING WATER AND SEWAGESERVICES IMMEDIATELY

Damaged and Destroyed Drinking Water andSewage Services Threaten Public Health Hurricane Katrina landed a devastating blow to morethan 1,000 drinking water supply systems and 172sewage treatment plants in Louisiana, Mississippi, andAlabama.7 Fetid water contaminated by disease-carryingbacteria and parasites, petroleum, and toxic chemicalsswamped many water systems’ source waters. Poweroutages have shut off critical pumps, treatment equip-ment such as chlorinators, control and communica-tions systems, and other equipment essential toproviding sewage treatment and to delivering safedrinking water to millions of people in the three states.In addition, flooding and wind damage destroyed ordisabled many drinking water systems’ collection andtreatment equipment, and in some cases ruined portionsof their water distribution systems.

More than two weeks after Hurricane Katrinahit land, Louisiana still had 517 water systemsaffected, Mississippi had 391, and Alabama one,according to an EPA review on September 13, 2005.New Orleans’ drinking water treatment system wascompletely knocked out, and its distribution systemsuffered heavy damage. The Crescent City’s waterlaboratory was also reportedly flooded. By September13, very limited service had been restored in somelocations, and non-potable contaminated waterwas being pumped into much of the system for useby firefighters.

As power is restored and preliminary repairs aremade, more systems begin to return to service, oftentelling their customers to boil water.8 Scores of publicwater systems have told customers their water is not

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Natural Resources Defense Council After Katrina

safe to drink and that they must boil their water beforeconsuming it; such “boil water alerts” do little ornothing, however, to protect consumers from manychemical contaminants. Likewise, reports are alsocoming in from other locations without functioningwater supplies that there are continuing shortages ofbottled water.

Louisiana alone estimates that it will need torebuild 50 percent of affected sewage treatment plantsat a cost of $38 billion. People exposed to sewage-polluted water can contract any illness that is spreadby ingestion of fecal-contaminated water. Virusesare believed to be the major cause of polluted water-associated diseases, and they are responsible forgastroenteritis, hepatitis, respiratory illness, and ear,nose, and throat problems. Gastroenteritis, which canalso be caused by bacteria, is a common term for avariety of diseases that can cause symptoms such asvomiting, diarrhea, stomachache, nausea, headache,and fever.

Widespread contamination by raw sewage, dozensof petroleum and chemical leaks and spills, and leach-ing of industrial waste sites have contaminated flood-waters and the available water sources for manysystems. This contamination immediately affectssystems using surface water but can also contaminategroundwater systems by flooding the wells, or byseeping into the ground and reaching undergroundwells—in some cases not immediately, but over time.

Virtually no monitoring of tap water and onlylimited floodwater monitoring—at the time of thispublication—have been publicly reported. The EPAreported results from one round of testing at about30 sites in the flooded areas of New Orleans. However,there have been:

� No reports of chemical testing of water outside ofthe New Orleans area;

� No test results for water near hundreds of majorand minor reported oil and chemical spills; and

� No test results for water around the scores ofindustrial facilities in the three storm-pounded GulfCoast states.

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Many systems will not meet monitoring requirementsintended to ensure drinking water safety. There will besubstantial pressure on state officials as well as on theEPA to relax testing and treatment requirements or toexercise “enforcement discretion” to excuse violations.Although in some cases it may be appropriate not toenforce requirements against a system hit hard by thestorm—particularly immediately after the event—Katrina should not become an all-purpose or long-term excuse to pardon public water systems that fail todeliver safe, fully tested drinking water to citizens inthe affected areas.

Immediate Actions to Restore Safe Drinking Waterand Sewage Services � Congress should immediately appropriate adequatefunds to test water in affected water systems andreplace or upgrade drinking water infrastructureto avoid future health threats. Preliminary reportsanticipate the cost of monitoring to be in excess of$100 million for the approximately 1,000 affectedwater systems and source waters, and that drinkingwater infrastructure repairs and rehabilitation costs forthe systems will be in excess of $6 billion to $8 billion.

� Congress should appropriate funds to rebuildsewage treatment plants and sewer system pipes toprevent further fecal contamination and reduce thelikelihood of waterborne disease transmission.

� Federal agencies should evaluate the appropri-ateness of continuing to pump raw contaminatedfloodwaters into Lake Pontchartrain before the lake isirreparably contaminated.

In the first days of the crisis, officials had no choicebut to pump floodwaters anywhere and any waythat they could. Much of this water is of course ladenwith the same contaminants left behind on the floodedlandscapes. Now that the worst flooding is over,officials should examine options for treating the mostheavily contaminated water that remains. They shouldalso evaluate the long-term damage to LakePontchartrain and evaluate ways to minimize itsimpact on people and habitat.

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Natural Resources Defense Council After Katrina

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� A national, independent inquiry into Katrina andits aftermath should evaluate the utter failure ofstate and local officials to ensure safe drinking wateris available in the event of a hurricane or otherdisaster—something required by federal law.Preparedness of all states to comply with thisrequirement should also be reviewed. Federalrules should be amended to require each stateand public water system to adopt, and periodicallyto drill, to evaluate the adequacy of such emergencyplans. The plans should be adopted and drilled withinput from federal, state, and local authorities as wellas citizens.

The floodwaters swamping New Orleans have become a toxic stew,testing at least 10 times over the U.S. EPA’s limits for sewage-related contaminants such as E. coli, viruses, and cholera-likebacteria. Current recovery efforts involve the Corps of Engineerspumping enormous quantities of floodwater into places suchas Lake Pontchartrain, which lies immediately to the north ofNew Orleans—close to residential neighborhoods with children.

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MAINTAIN A ‘NO EXCUSES’ CLEANUP POLICYWITH STRONG SAFETY AND HEALTH STANDARDS

Some are arguing that we need to have lower environ-mental health standards as part of our recovery efforts.But there is no reason why we can’t protect the healthof Gulf residents as we quickly do recovery work.People have already suffered enough and deserve a“no excuses” cleanup approach that does it fast—butalso does it right.

Under pressure from oil companies, the federalgovernment has already waived a number of airpollution and fuel standards in the wake of thestorm, including the sulfur content requirements formotor vehicle fuels. So far, rollbacks have been onlytemporary, but there is talk that industry will seeka more permanent suspension of the EPA’s sulfurcontent requirements. This would unnecessarily com-promise public health and derail significant upcom-ing engine standards that depend on the availabilityof clean fuel. Occupational health standards mayalso be in danger as efforts accelerate to reclaimdevastated areas.

Lobbyists are already working with their allies inCongress to weaken important environmental stan-dards and other protections. Senator James Inhofe(R-OK), chairperson of the Senate Environment andPublic Works Committee, has introduced legislationthat would allow the EPA to waive all laws underEPA jurisdiction, and to waive any law not underEPA jurisdiction for the EPA’s Katrina response opera-tions—for up to 18 months.

Most major environmental laws already includeemergency authority, often vested in the president,for waivers in the event of a national emergency.Although some limited common-sense waivers maybe warranted on a temporary, emergency basis, thedisaster should not be an excuse to create sweepingexemptions or to authorize even more unnecessaryhealth and environmental problems—exacerbatingexisting environmental justice issues and perhapscreating new ones. This is particularly true in light ofthe massive toxic and chemical contamination causedby the storm.

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Natural Resources Defense Council After Katrina

Key Reasons Not to Authorize Sweeping Waivers1. On the pretext of high oil prices, refinery ownersand their allies are pressing for a host of specialextensions from health, safety, and emissions rules.But tight refinery capacity is due to refiners’ economicdecisions, not environmental law.

Although the total number of refineries has declinedsince 1981, total capacity has actually steadily increasedsince the early 1990s, as refiners have found it morecost-effective to expand capacity at existing facilitiesrather than operate small refineries or build new“green field” plants. Nor have environmental rulessqueezed profit margins. In fact, the Department ofEnergy’s Energy Information Administration hasdetermined that environmental requirements haveaccounted for only a very small share of meager profitmargins over the years.9

Stories about the plight of refiners are highlydubious as well. In fact, U.S. oil refinery companiesare posting record profits, record margins, and recordstock prices thanks to high oil demand. For example,shares in Valero Energy, the country’s biggest refiner,are up 25 percent since Katrina alone (in line withmost other U.S. refiners) and have tripled in priceover the past year. In the first six months of 2005, Valeroreported profits of $1.4 billion—up nearly 60 percentover the previous year.10 On September 9, 2005, theWashington Post called refiners’ plea about low margins“the oil industry’s other Big Lie”:

Every year, Fortune Magazine, in its Fortune 500 issue,calculates the rate of return on shareholder equity for eachmajor industry. Last year, when oil prices were a lot lowerthan they are now, the average return for both independentrefiners and integrated majors was 23.9 percent. This year,it’s been even higher. And over the past decade, according toFortune, the return on equity in the sector has averaged16 percent, well above the investment hurdle rates in mostother sectors of the economy.

And refiners’ market power is only growing: TheFederal Trade Commission just approved Valero’s$8 billion acquisition of its former competitor: Premcor.

2. Drilling in the United States is just more of the same.

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Katrina’s spills should be a reminder of the inevit-able risks that come with coastal drilling, especiallyin areas prone to hurricanes and tropical storms.Yet, after Katrina, many in Congress responded byrecycling old demands for new or expanded oil andgas drilling off our coastal beaches and in huge areasof rare and protected wilderness, such as the ArcticNational Wildlife Refuge. Suggesting that soaringenergy prices might be Katrina’s “silver lining,” TexasRepublican Congressman Joe Barton told reporterslast week that “we could be drilling off the coasts ofseveral other states.”11

Some say the elimination of current coastal pro-tections might be tacked onto hurricane relief legisla-tion. Others say there will be a new plan that wouldeffectively bribe cash-strapped states to open up theirshores to oil drilling by kicking back a share ofrevenue that would ordinarily go to the federalgovernment. Areas at risk include the eastern Gulfof Mexico off Florida’s heavily populated beaches,Virginia, California, and the Outer Banks of NorthCarolina. Even New Jersey could see rigs offshore.

Renewed calls to open the Arctic National WildlifeRefuge to oil exploration and production are similarlyimpossible to justify based on the short-term supplydisruption. Although drilling advocates claim thereis potentially 16 billion barrels of oil in the ArcticNational Wildlife Refuge, this figure is an extremeupper-bound estimate (1 in 20 chance) of the oil thatis potentially recoverable, regardless of extractioncosts. Such oil would not hit the market for manyyears and represents a tiny percent of U.S. consump-tion. Moreover, a price-adjusted mean estimate, whichbetter represents the basis for production decisionsregarding potential future discoveries, shows thatthere is far less economically extractable oil, whichwould mean sacrificing this precious resource for amere one year’s worth of U.S. oil.

3. Current law provides the necessary authority torespond to short-term fuel supply disruptions. TheEPA’s prompt temporary waivers were enough toensure clean fuel requirements did not worsengasoline price increases during the last week. No

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Natural Resources Defense Council After Katrina

changes to clean air laws are justified based on theaftermath of Katrina, and for the sake of public health,the clean fuel waivers need to expire as soon as possi-ble. What is at stake with these waivers is significant:When all of today’s trucks, buses, and other dieselengines have been replaced by new engines mandatedby the EPA, the EPA estimates that this will eliminatemore than 20,000 premature deaths and provide netbenefits of more than $140 billion each year.

4. Waiving gas taxes benefits oil companies and hurtsconsumers. States and the federal government areeven considering waiving federal and/or state gastaxes at the pump. But this measure shortchangestransportation trust funds vital to road and railconstruction and maintenance. And since it is lackof supply, not cost, that is setting the market pricefor gasoline, prices are unlikely to drop, and thedifference would just add to the windfall enjoyedby big oil companies.

FIX GAPS EXPOSED IN NATION’S DISASTERPREPAREDNESS AND RESPONSE

Despite increased homeland security funding andplanning post 9/11, Katrina exposed gaping holes inthe combined federal, state, and local capabilities foremergency response, including: (a) repeated failuresat all levels to act on reducing known, specificallyidentified risks to the public relating to a powerfulhurricane; (b) severe breakdowns in emergencycommunication networks; (c) vulnerability of criticalemergency power systems to flooding even though thefacilities were located in an area chronically prone tominor flooding and previously subject to devastatingfloods; and (d) conflicting and incomplete evacuation

”There have been 575 reported cases ofhazardous substance and oil pollutionincidents in the Gulf States as a resultof Katrina.”

—U.S. COAST GUARD, SEPTEMBER 18, 2005

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planning at city, state, and federal levels, and failure toexecute the plans that did exist.

The federal response to Katrina in particular raisesgrave doubts about the viability and effectiveness of thenew Department of Homeland Security (DHS), whichhas submerged FEMA’s capacities for swift naturaldisaster relief response within a larger bureaucratic entityfocused on preventing and, to a lesser extent, respond-ing to terrorist attacks. The wisdom of merging terror-

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ist attack prevention and natural disaster responsefunctions in a single agency is clearly in question.

� Restore FEMA’s status as an independent agencywith cabinet rank and ensure that the senior levels ofthe agency are staffed by persons with relevant experi-ence, and expand independent oversight of the Depart-ment of Homeland Security, in particular DHS’s disasterplanning, response, and management programs.

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No region of our country, not even New York Citypost 9/11, has been presented with the scale

of rebuilding that will be required in Katrina’s wake.If reconstructed well, the new city of New Orleansand the surrounding areas could become a model citydemonstrating 21st century principles of sustainabledesign and livable communities. Rebuilding anddevelopment plans should be geared not only towardreducing infrastructure, energy, and transportationcosts, but also toward protecting and restoring wet-lands that protect against tropical storms.

RESTORE NATURAL COASTAL BUFFERS ANDBUILD IN A SAFE, SUSTAINABLE WAY

Coastal Wetland Erosion Exacerbates Flooding Of all the environmental roots to the Katrina tragedy,none is more striking, at least in geographic scale, thanthe role played by Louisiana’s disappearing coastalwetlands and barrier islands. Wetland ecosystemsare nature’s buffer against catastrophic storm surges.Destroy that buffer and you destroy the first line ofdefense—not only for New Orleans but also for a hostof other American cities. Studies show that as littleas one square mile of wetlands can absorb a foot ofsurge. But the channelization of the Mississippi andnearby waterways, which has kept the wetlands frombeing replenished, and development have disruptedthe ecosystem and led to a widespread wetlandsdestruction along the coast. As a result, since 1930,almost 2,000 square miles of the Louisiana Delta have

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eroded away, and coastal Louisiana continues to dis-appear—literally—at a rate of 25 to 35 square milesannually. According to preliminary reports, HurricaneKatrina accelerated the destruction of the protectivenatural fringe, eradicating entire barrier islands andripping up vast swaths of wetlands.

As Louisiana’s wetland and barrier islands erodedaway, coastal communities and critical oil and gasinfrastructure became increasingly exposed to stormsurge, flooding, and wind damage. New Orleans,which has now subsided 10 feet below sea level insome places, became particularly vulnerable, despite acomplex system of massive levees and pumps. Accord-ing to preliminary reports, Hurricane Katrina acceler-ated wetlands destruction, eradicating entire barrierislands and ripping up vast swaths of wetlands.

The channels that now carry so much of theregion’s water flow essentially pipe the water andsediments directly into the Gulf, instead of allowingit to disperse naturally to nourish the Delta’s wetlands.Starved of sediments, the wetlands erode. Develop-ment and pollution, such as that from pipelines andrelated facilities, has also played a role in the loss ofwetlands. During major storms, the channels them-selves cause another problem—they funnel the stormsurge inland, even into the heart of New Orleans, asis believe to have occurred in the case of Katrina withtragic consequences. Overall, the situation punctuatesthe astonishing degree to which the Army Corps’sprioritization of flood control and inland navigationprojects is not risk-based.

BUILDING A SECURE, LASTINGFUTURE FOR THE GULF STATES—AND THE NATION

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Stemming Wetlands LossThe wetlands of the Delta could be restored to theirprevious vibrancy, to serve not only as a natural barrieragainst hurricanes but also as nurseries for the mostbountiful fisheries outside of Alaska (providing about30 percent of the nation’s total catch) and one of themost important wildlife havens in the country. Decisionsthat will determine the region’s future should be madewith deliberation, allow for a full range of ideas andconsensus-building, and be determined by the citizensof those regions. NRDC recommends the followingactions to ensure sustainable city and suburban devel-opment and to restore and protect coastal wetlands:

� Planners and developers should avoid redevelop-ment in flood-prone areas and be consistent with long-term wetlands restoration efforts.

Rebuilding processes must be integrated with long-term wetlands protection and restoration needs or theregion will cycle back into unsustainability. We shouldstart enforcing the Clean Water Act’s wetlands regu-lations to make the “no net loss” goal real to protectour homes and families from flooding and contami-nated drinking water supplies, as well as the loss offish, ducks, and other wildlife dependent uponwetland habitat.

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� Federal and state agencies should develop a compre-hensive plan to restore Louisiana’s coastal wetlandsand barrier islands, and Congress should authorizeand fund the plan.

Over the last decade, a coalition of governmentagencies, academic institutions, and environmentalgroups have developed the outline of such a compre-hensive plan called Coast 2050. Congress and theagencies should also move forward immediately tofund a number of near-term projects about which thereis consensus by agencies and environmental groupsand that will provide immediate benefits in restoringthe barrier islands and coastal wetlands.

� The rebuilding of flood control systems shouldensure that no further damage to coastal wetlandsor other environmental harm is caused.

Protecting and restoring the wetlands, which are partof the economic, cultural, ecological, and physical well-being of the region, must be central to Louisiana’s futureflood control system. Congress should create an inde-pendent science and technology advisory body to over-see both the rebuilding of the flood control system andwetlands restoration efforts. Such expert independentoversight has never been more vital, given the environ-mental and public safety failure of the Corps existing

Coastal wetlands—vital habitatfor oysters and breeding groundsfor fish and crustaceans—havebeen torn apart by wind and water,and contaminated with sewageand chemicals, leaving Louisiana’s$2.7 billion-a-year commercialfishing industry another potentialcasualty of Hurricane Katrina.The region’s fishers, shrimpers,and oyster harvesters typicallysupply the United States withabout 30 percent of its seafood.

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levee and canal system, the well-documented lack of sci-entific justification generally for so many Corps projects,and the need to spend public funds as effectively aspossible on rebuilding a sustainable south Louisiana.

� The Army Corps of Engineers should be required,via Executive Order and/or legislation, to prioritizeits infrastructure and flood control projects based ongenuine risk reduction criteria rather than mere “eco-nomic viability” at the margin.

Katrina revealed the astonishing degree to whichthe Army Corps’ prioritization of flood control andinland navigation projects is not risk-based, such thatLouisiana could lead the list of states receiving Corpsfunding in the annual energy and water appropria-tions bill, but do next to nothing with hundreds ofmillions of dollars per year to ameliorate its steadilyincreasing and well-understood vulnerability to apowerful hurricane. Ensuring that the Corps-fundedinvestment priorities faithfully to reflect the mosturgent priorities for reducing risks to the public infuture disasters must be job one for Congress, theadministration, and state and local officials.

Building Healthier, More Sustainable NeighborhoodsFor all its charm, New Orleans has long been besetwith social, economic, and environmental neglect.Now is the chance to restore the city’s 19th centuryelegance using the wisdom and technology of the 21stcentury. That means energy-efficient, weather-resistanthousing designed according to voluntary federalstandards that save money and improve comfort forpeople who live there, no matter what their income.And it means family-friendly, mixed-use, mixed-income walkable communities like many affectedareas had in earlier days. Planners and developersshould take care to avoid unprotected floodplains andareas of the coastline that are fundamentally unstable.This is also an opportunity to relocate dangerous oiland chemical facilities away from residentialneighborhoods.

� Engage and empower ordinary citizens to participatein planning and rebuilding efforts. Communities enjoy

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more benefits when development planning is inclusiveof all citizens. Region-wide planning charrettes, such asthe recent “Reality Check” sessions sponsored by theUrban Land Institute in Los Angeles and Washington,D.C., can be powerful tools for sustainable thinking.So can visioning exercises that use computerizedimagery to guide citizens through developmentoptions at both the neighborhood and regional levels.

� Planners and developers should move hazardousmaterials storage facilities away from people.

Rebuilding must address planning failures of the pastby locating industrial facilities and sites with signifi-cant quantities of hazardous materials so that releasesare minimized in the event of major storms and/orregional flooding. Industrial facilities that are morelikely to experience releases of hazardous substancesin the event of flooding should be adequately isolatedfrom residential populations. Robust disaster planning(including release control and containment, decontami-nation, and evacuation plans) should be put in place,especially for areas where toxics releases are possiblein close proximity to residential neighborhoods.

� Planners and developers should build walkable,convenient neighborhoods and emphasizetransportation choices.

Planners and developers should follow smartgrowth principles in rebuilding. Where necessary,remake zoning so that people can live close to jobs andwithin easy walking distance of neighborhood storesand conveniences. Give priority to restoring,expanding, and enhancing public transit, rail, andother efficient transportation options. Encouragedevelopment around transit stops and stations.

Follow development guidelines, such as the recentlypublished draft Leadership in Energy and Environ-mental Design (LEED) standards for neighborhooddevelopment by the U.S. Green Building Council,NRDC, and the Congress for the New Urbanism.Planners should also take care to preserve the culturaland historic resources that make New Orleans andother Gulf Coast communities special, building inways that complement the region’s assets.

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� Planners and developers should integrate affordablehousing into neighborhood development.

Build on the rich tradition of diversity in NewOrleans and the Gulf region by ensuring that allincome levels enjoy the benefits of lively, mixed-income neighborhoods.

� Planners and developers should take advantage ofgreen building design.

Green building techniques save energy andresources while enhancing livability and reducingoperating and maintenance costs. They can alsosave money for the people who live or work in them.Follow LEED standards when constructing and rehab-ilitating structures. As tens of thousands of homes,office buildings, stores, and other structures will needto be rebuilt, with hundreds of thousands of appli-ances, heating and cooling systems, and lightingfixtures, both public and private rebuilding effortsshould make New Orleans and the other affectedGulf Coast ‘Energy-Star Cities,’ cities that are modelsof energy efficiency and renewable energy.

� Congress should create a sustainable developmentfund.

Create a special fund to assist developers thatpractice sustainable development by, for example,placing affordable housing utilizing green buildingtechniques near transit stops, or green commercialbuildings in the central business district. Create awindfall profits tax on high-priced gasoline sales tocapitalize the fund.

� Congress should boost funding for water and waste-water treatment and direct more of it toward green infra-structure and other integrated, sustainable approaches.

We should stop funding or subsidizing sprawldevelopment, environmentally destructive projects,and other expenditures that trade off long-termenvironmental and economic sustainability for short-term profits. We should integrate greenways, streambuffers, rain gardens, green roofs, and other types ofgreen infrastructure into development plans to reducestormwater pollution, flooding, and energy costs.

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ENSURE NO COMMUNITY DISPROPORTIONATELYSUFFERS FROM POLLUTION

Environmental injustices have plagued New Orleansand the Gulf Coast region for decades. Studies reportthat facilities generating toxic wastes in this region aremore often located near communities of low incomeand color than other communities.12 In ordinary times,it is easy for many to ignore the injustice. But with thepoorest neighborhoods of New Orleans drowning ina hazardous sea of fuel, sewage, and chemicals, it’simpossible not to notice just which of our citizens arepaying the ultimate price.

Environmental Justice Issues Are Rife inNew Orleans and Storm-Pounded AreasAlthough Hurricane Katrina affected all populations,many of the area’s low-lying lands—the hardest hit—are in communities of low income and color. Forexample, the Lower Ninth Ward was one of themost devastated areas of New Orleans. The ward is98 percent African-American, and 36 percent of itsresidents live in poverty. As a whole, the OrleansParish is 67 percent African-American, 21 percent ofthe households earn less than $10,000 a year, andnearly 27,000 families are below the federal povertylevel (2000 census data).

There is also a history of inequitable post-hurricanecleanup and recovery efforts. For example, hurricanesBetsy and Camille contributed to the formation ofa Superfund site at the Agriculture Street Landfillsubdivision in New Orleans. The 190-acre landfillreceived waste from households, construction debris,ash from municipal waste incinerators, and debrisfrom other hurricanes.

Katrina not only exposed some of the region’senvironmental injustices, but also intensified them.The following are just three examples of dispropor-tionate suffering resulting from Katrina:

� Oil refinery and petrochemical spills occurred inareas already experiencing environmental injustices,perhaps making parts of the region uninhabitable foryears. This raises questions about how cleanup efforts

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will be prioritized, what the cleanup standards willbe, where contaminated soil and debris will be stored,and who will have to live near or on this new contami-nated landfill.

� The hurricane hit at least three Superfund sites thatare located near low-income communities of colorin New Orleans: Bayou Bonfouca, MadisonvilleCreosote Works, and Agriculture Street Landfill,which remains underwater. It is unclear whetherthe flooding disturbed toxic chemicals at these sites,and if so, to what extent.

� People who did not own vehicles, mostly low-income residents, were less likely to evacuate theregion before the storm hit. In fact, many low-incomecommunities lacked any substantial emergency pre-paredness plans in the event of an accident, or in thiscase, a natural disaster.

Environmental injustices have plagued New Orleansand the Gulf Coast region for decades.13 The NewOrleans area is also home to Louisiana’s infamous“cancer alley,” a region stretching 85 miles up theMississippi River to Baton Rouge, along whichmore than 140 oil refineries and petrochemical plantsproduce a quarter of the nation’s petrochemicals.14 In

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fact, more than 50 percent of all Louisiana residentswho live within 3 miles of a refinery are African-American—just one more reason why Louisiana,and the greater New Orleans area in particular,has historically been recognized as one of the worstperpetrators of environmental injustices in the region.

With the poorest neighborhoods of New Orleansflooded in a hazardous sea of fuel, sewage, and chem-icals, environmental justice leaders throughout thecountry are viewing the catastrophe as an opportunityto bring environmental justice to the forefront of thenation’s attention. Will cleanup and rebuilding fundsbe distributed equitably among the region’s diversecommunities? Will areas previously populated by low-income people of color be rebuilt and gentrified sothey are no longer affordable? If so, will these dis-placed communities have to live close to newlycreated toxic sites?

Reducing Environmental InjusticesTo ensure that no new environmental injustices arecreated, and to avoid exacerbating current environ-mental injustices, NRDC recommends the following:

� There is an ongoing fear that some of the hard-hitareas will be rebuilt and redeveloped so that low-income

Melvin Johnson, whose Desire Streethome is under four feet of floodwaterfrom Hurricane Katrina, paddlesthrough his old neighborhood tocheck on a friend who refused tobe evacuated. Many of New Orleans’Lower Ninth Ward residents weredetermined to stay in their homesno matter the difficulties, includingtoxic water filled with chemicals,fuels, dead bodies, and fecal matter.

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communities of color who previously lived there willbe pushed out in favor of new, more profitable devel-opment. Local government’s exercise of eminentdomain powers should not be used to take propertiesin low-income communities of color for public uses.

� FEMA and the Department of Homeland Securityshould reaffirm their commitment to their environmentaljustice requirements under Executive Order 12,898,and they should immediately create new disasterpreparedness models that address the needs andrealities of low-income persons in every community.Appropriations bills proposed for Katrina relief effortsshould contain a provision that prohibits the use offederal funds to contravene or delay the implementationof the Executive Order’s requirements.

� The EPA should ensure environmental clean ups areconducted equitably across all communities, environ-mental cleanup resources are distributed equitably, andthat the highest levels of environmentally protectivecleanup standards are implemented in all communities.

� The EPA and FEMA should ensure that cleanupand rebuilding efforts are community-driven, withrepresentation from stakeholders that reflect the racialand economic diversity of the region, and that ade-quate affordable (low-income) housing is integratedin the rebuilding process.

� President Bush should reinstate the wage require-ments of the Davis-Bacon Act to ensure that workingpeople desperately trying to rebuild their lives andtheir communities are paid the federally requiredprevailing wage. The act requires a minimum payscale for workers on federal contracts by requiringcontractors to pay the average pay in the region. Thepresident waived the act’s requirements citing an“emergency situation.”

� Rebuilding efforts should increase the availabilityand accessibility of public transportation, especiallyin low-income areas where people are less likely toown vehicles.

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PROTECT AMERICAN CONSUMERS FROMDISASTER--RELATED ENERGY PRICE SPIKES

Our oil-addicted economy is just too vulnerable tosupply disruptions, as anyone who filled up their gastank the week after Katrina hit discovered. Drillingfor more oil off our beaches or in rare, protectedwilderness, as many in Congress are now suggesting,is not the answer. It is this old way of thinking thatmakes America so vulnerable to natural disasters—and other disasters. The solution is to reduce ourappetite for oil by improving the fuel economy of ourvehicles (which consume 40 percent of our oil) andby relying on smarter, cleaner, and renewable waysto power our economy.

Oil Markets Were Tight Before KatrinaLong before Katrina struck, the entire global oil sup-ply chain, from wellhead to gas tank, was stretchedto its absolute limit by rising global demand for fuel.Prices were at levels not seen since the oil embargoesof the 1970s. By temporarily knocking out about10 percent of U.S. refining capacity and nearly allGulf oil production, Katrina drove up the prices forboth refined gasoline and (more briefly) unrefinedpetroleum throughout the global marketplace.15

Consumer frustration quickly mounted, and econo-mists now predict that the Katrina-spurred pricespikes are likely to decrease third-quarter U.S. grossdomestic product growth by nearly 1 percent.16

In the middle to long run, Katrina will mostly affectgasoline, rather than oil markets. Average prices forregular gas nationwide jumped about 40 cents becauseof legitimate supply issues, but also because of areluctance by retailers to lower prices as quickly asthey raise them. Oil markets, on the other hand,calmed as it became clear that most offshore drillingplatforms survived intact and the federal governmentagreed to release oil from the Strategic PetroleumReserve. Crude prices briefly touched $70 per barrelbefore receding to about $65 per barrel.17

But the fundamental tension between supplyand demand has not gone away. Since 1990, U.S. oildemand has soared 23 percent to about 21 millions

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barrels per day. One reason is average fuel efficiencyof new vehicles dropped to 21 miles per gallon in 2005,after having increased dramatically from 13 to 22 milesper gallon between 1975 and 1987.18 Longer commutesand more cars exacerbate the problem; U.S. vehiclemiles traveled have tripled since 1970 to approxi-mately 3 trillion miles per year.19

And yet we are passing up one opportunity afteranother to fix the problem. Both the energy andtransportation bills passed this summer by Con-gress—after years of debate—do little to reduceenergy demand. In fact, provisions in both bills couldactually increase our oil dependence. And just lastmonth, the Bush administration issued complexnew fuel economy standards for pickups, sportutility vehicles, and minivans that scarcely budgetheir poor mileage performance.

A Cleaner, More Effective Path to Economic SecurityAmerica simply cannot drill its way out of the prob-lem. To reduce the growing economic and securityrisks of our oil dependence, we need to make anational commitment to reduce oil dependence,through conservation measures and through invest-ments that increase our efficiency and diversify ourfuel sources.

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� Congress should make a national commitment tosave 2.5 million barrels per day by 2015, and 10 millionbarrels per day by 2025.

Such a measure passed the Senate twice duringthe 2003 and 2005 energy bill debate. Both billsincluded a requirement that the administration save1 million barrels of oil a day 10 years hence. But bothtimes it was later removed. Congress should set thebar higher and meet this savings commitment byenacting efficiency standards for heavy trucks, tires,and motor oil, and by commercialization incentivesfor advanced biofuels that can displace gasoline inour cars and trucks as well as additional transit invest-ments and incentives for transit-oriented develop-ment. By adopting such a package, Congress willput America on the path to oil independence.

� Congress should encourage growth in the biofuelsindustry.

Biofuels, ethanol, and other fuels derived fromplant material and animal waste have tremendouspotential to reduce our oil demand. Produced acrossthe country, biofuels could allow for a much greatergeographic diversity of production facilities. Ethanolderived primarily from corn kernels already reducesour gasoline demand by about 2 percent, and

Hurricane Katrina pounded anarea vital to America’s oil and gasindustry at a time when soaringglobal demand and low inventorylevels had already sent oil and gasprices to record levels. Here, motor-ists push their car to conserve fuelwhile waiting in line for gasoline onInterstate 10 in Biloxi, Mississippi.

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advanced technologies that can make use of cropresidues and specialty crops, such as switchgrassand willow and poplar trees, could contribute theequivalent of nearly 8 million barrels of oil per dayby 2050 from existing cropland without interferingwith food production.20

� Congress should raise fuel economy standards to40 miles per gallon for light trucks and cars.

Raising fuel economy is cleaner, cheaper, and moreeffective than building new refineries. A new global-size refinery producing 250,000 barrels of gasoline perday (1 percent of daily demand) would take at least adecade to build and cost about $4 billion.

Just boosting fuel economy performance standardsfor light trucks by one mile per gallon per year for fiveyears—would yield savings of 600,000 barrels per dayin 2016. This would be more than twice as much as thepresident’s most recent proposal.

By raising fuel economy performance to 40 mpgfor light trucks and cars, it would save more than2 million barrels per day by 2016, the equivalent ofeight new large refineries, saving consumers about$61 billion each year at the pump (assuming a priceof $2.00 per gallon). Because fuel efficiency gainscould start to save gasoline before 2016, thisstrategy would save about 3 billion barrels ofgasoline by the time a new refinery could be put intooperation. Higher efficiency would eliminate morethan 1 million tons of smog-forming and globalwarming pollution.21

CURB GLOBAL WARMING OR FACE EVER MOREINTENSE NATURAL DISASTERS

While no single hurricane can be directly linked to globalwarming, climate scientists have shown that globalwarming is raising sea levels and making hurricanesmore powerful. In the short term, we should considerglobal warming pollution issues in decisions on howto rebuild New Orleans and other coastal areas dam-aged by storms.

But we must start curbing the pollution that causesglobal warming in order to protect the cities of the

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Gulf Coast—and regions all over the globe—from everincreasing dangers.

Global Warming Can Lead to Stronger HurricanesAlthough we cannot prove whether global warmingplayed a role in any particular storm, scientists tellus the odds of stronger hurricanes are increasing asglobal warming increases ocean temperatures. In fact,two new studies published in Nature and Scienceshow that hurricanes have become stronger over thepast 30 years, with longer durations and stronger winds.Global warming is also causing sea levels to rise. Andonce global warming pollutants are in the air, theireffects on ocean temperatures and sea-level rise arelocked in for centuries.

Sea level in the New Orleans region is expectedto rise two to five feet in the region by 2100 due tothe combined effect of rising waters and the region’scontinuing subsidence. With no action to curbglobal warming, hurricanes will be far more destruc-tive and coastal areas far more vulnerable, and thelonger we fail to act, the worse the risk of anotherKatrina becomes.

While no one can undo the ocean warming, andsea-level rise already in the pipeline, our policy choicesnow will affect how much additional danger is builtinto the system.

Recommendations for Curbing Global Warming An adequate response to the Katrina disaster requiresimmediate relief for its victims and a well-designedrebuilding effort. But it also requires action to preventa more dangerous climate, driven by global warming.And the prospect of stronger hurricanes has to beconsidered in the rebuilding plans for New Orleansand the other Gulf Coast communities devastatedby Katrina.

� The president and Congress should act now toadopt mandatory limits that slow, stop, and reversethe growth of emissions of carbon dioxide and otherglobal warming pollutants.

Scientists warn of extreme dangers if global averagetemperatures are allowed to increase by more than

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3.6 degrees Fahrenheit (2 degrees Celsius). Prevent-ing even higher temperatures requires stoppingU.S. emissions growth within the next 5 to 10 yearsand cutting emissions by more than half over thenext 50 years, in concert with appropriate action byother countries. Well-designed legislation can meetthis environmental objective while reducing U.S.oil dependence and maintaining coal production,and without putting additional pressure on naturalgas demand. Global warming legislation can alsohelp the economy transition to new energy tech-nologies, while assisting workers and communitiesand protecting consumers from energy cost shocks.

NRDC favors a market-based, cap-and-tradeprogram modeled on the highly successful programto control acid rain. Trading of emissions allowancesis a proven method to minimize costs and giveindustry maximum flexibility. With equitable allo-cation allowances, key industries can be protected,consumer costs held in check, incentives created tospeed the deployment of new technologies, and

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funds made available to help with post-Katrinarestoration and rebuilding.

Carbon emissions cap-and-trade legislation can bestructured to give incentives for clean technology, aswell as to support adaptation measures (i.e., wetlandsrestoration) and disaster planning.

� New Orleans and other damaged Gulf Coast com-munities should be rebuilt with full attention to thefuture hazards of global warming.

Given stronger storms, sea-level rise, and continuedsubsidence, New Orleans will not be safe even withlevees reconstructed to withstand a category 4 storm.Infrastructure and buildings should be constructed tocope with the combined hazards of sea-level rise andstronger hurricanes. Wetlands restoration plans musttake into account sea-level rise, which is expected tosubmerge 70 percent of existing wetlands by 2100. Forthe same reason, communities like Gulf Port and Biloximust consider even greater wind and storm surge risksin rebuilding the coastal areas wiped out by Katrina.

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Global warming raises oceantemperatures, and warmer oceantemperatures fuel more powerfulstorms. Already, water surfacetemperatures in North Americahave been significantly aboveaverage for a decade. If we donothing to curb global warming,future hurricanes could hit harder,causing even greater damagethan Katrina did to vulnerable oiland transportation infrastrucure,such as it did to MississippiState Highway 90, to homes andbusinesses—and to human life.

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1 See U.S. Coast Guard, “Oil Pollution Containment and Recovery Con-tinue,” Press Release September 15, 2005, available online at http://www.uscgstormwatch.com/external/?cid=1008&fuseaction=external.viewDocument&documentID=83501.

2 EPA CERCLIS database. See also http://net.org/health/katrina_toxics.vtml.

3 Information about facilities handling hazardous waste (includingSuperfund sites) may be accessed at EPA’s Envirofacts Data Warehouse:http://oaspub.epa.gov/enviro/ef_home2.waste.

4 See http://www.epa.gov/katrina/testresults/bio2005_09_030405.html.

5 S. Heather Duncan, “Removing debris may take 5 years in Mississippi.Stacked in a football field, the trash would reach up to 31⁄2 miles,” HoustonChronicle, September 10, 2005.

6 Tasha Eichenseher, “Miss. storm debris would bury 300 gridirons to50-foot depth, Corps says, “ Greenwire September 12, 2005.

7 EPA, Hurricane Katrina website, “EPA Response Activities,” http://www.epa.gov/katrina (EPA reported shortly after Katrina that more than1,000 water systems were put out of service, forced to issue boil wateralerts, or otherwise harmed by Katrina; when the EPA’s website was lastvisited on September 16, 2005, the agency reported that this number hadbeen reduced to about 600 water systems).

8 Ibid.

9 Energy Information Administration, The Impact of Environmental Compli-ance Costs on U.S. Refining Profitability (October 1997) (available at http://www.eia.doe.gov/emeu/perfpro/ref_pi/contents.html). See also ICFConsulting, Review of Data on the Impact of New Source Review on InvestmentDecisions: Power Generation and Refinery Sectors, Draft Report (June 22, 2001),at 53.

10 Thaddeus Herrick, “Refiners Shares Get Second Wind from Storm,”Wall Street Journal, September 9, 2005.

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ENDNOTES

11 Roxana Tiron and Patrick O’Connor, “The Hill—GOP leaders areconsidering a new energy bill after Katrina,” in e-mail correspondencefrom Tom Manatos, Office of the Democratic Leader, September 8, 2005.

12 See U.S. General Accounting Office, Siting Hazardous Waste Landfills andTheir Correlation with Racial and Economic Status of Surrounding Communities,June 1983; United Church of Christ, Commission for Racial Justice, ToxicWastes and Race in the United States: A National Report on the Racial and Socio-economic Characteristics of Communities with Hazardous Waste Sites, 1987, pp.xiii, 13–21 (“UCC Report”); and Benjamin A. Goldman and Laura Fitton,Toxic Wastes and Race Revisited: An Update of the 1987 Report on the Racial andSocioeconomic Characteristics of Communities with Hazardous Waste Sites(Center for Policy Alternatives and the United Church of Christ, Commis-sion for Racial Justice, 1994), pp. 2–4; and Luke W. Cole and Sheila R. Foster,From the Ground Up: Environmental Racism and the Rise of EnvironmentalJustice Movement (New York University Press, 2001), pp. 54–55, 167–83.

13 Ibid.

14 Energy Information Administration, 2002.

15 “Katrina’s Wake,” Business Week, September 12, 2005.

16 Reuters, POLL-Analysts see temporary hit to U.S GDP from Katrina,September 13, 2005.

17 Energy Information Administration and Greg Migliore, “Gas prices rise41 cents in hurricane aftermath,” Automotive News, September 8, 2005.

18 Light-Duty Automotive Technology and Fuel Economy Trends: 1975Through 2005, EPA420-R-05-001, July 2005.

19 Bureau of Transportation Statistics, U.S. Department of Transportation.

20 Greene, Nathanael et al., Growing Energy: How Biofuels Can Help EndAmerica’s Oil Dependence, NRDC, December 2004.

21 NRDC calculation of emission reductions assuming 42 gallons of gasolineper barrel, 24.5 lbs of CO2 per gallon of gasoline through the fuel lifecycle and0.14 lbs of smog-forming hydrocarbon and NOx emissions per gallon ofgasoline from production, refining, and delivery of each gallon of gasoline.