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New Jersey lawmakers send post-Exxon pollution bill to governor

Published 03/26/2015, 04:21 PM
Updated 03/26/2015, 04:21 PM
New Jersey lawmakers send post-Exxon pollution bill to governor

By Hilary Russ

(Reuters) - New Jersey lawmakers sent a bill to Governor Chris Christie on Thursday that calls for more money from environmental settlements to fund cleanups.

The legislation came after the Christie administration announced a controversial $225 million deal with Exxon Mobil Corp (NYSE:XOM) on March 5 over environmental contamination from two of its former New Jersey refineries.

Environmentalists consider the sites, known as Bayway and Bayonne, the most polluted in a state infamous for its industrial contamination.

Christie, a likely Republican contender in the 2016 U.S. presidential election who faces a budget crunch at home, has called the accord a "really good deal" because the money comes on top of what Exxon would have to pay to clean up the sites.

His administration has said money from the settlement would not be available until at least fiscal 2016.

The state's Democrat-led legislature is asking for documents and questioning why the administration would settle a case worth potentially $8.9 billion for so little. The judge overseeing the state's 2004 lawsuit against Exxon must still approve the settlement after a public comment period.

Currently, the first $50 million of environmental settlements, like the one struck with Exxon, is used for restoration. Any remaining money can go into the state's general fund.

The bill that now heads to the governor calls for the use of 50 percent of that remaining money for environmental purposes as well.

"Residents have been terribly shortchanged by this settlement. Using these funds as a short-term budget fix adds insult to injury," said John McKeon, one of the bill's sponsors, in a statement.

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Christie spokesman Kevin Roberts said the office does not comment on pending legislation.

"However, as a budgetary matter, this is something we expect will be resolved through budget negotiations," he said. OLUSPOLITIC Reuters US Online Report Politics News 20150326T201942+0000

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