Bailout Screws Environment While 'Saving' GM

[Annie]

anyone really think GM is going to be viable 5 years from now? But the legacy will go on:

REPORT: GM gets out from under its polluted sites scot-free — Autoblog

REPORT: GM gets out from under its polluted sites scot-free
by Jonathon Ramsey (RSS feed) on Aug 7th 2009 at 7:01PM



Among those clamoring for attention and payouts from Motors Liquidation Co., the company that assumed General Motors' unwanted assets after its Chapter 11 filing, are the environmental and economic redevelopment departments of state governments. According to reports, when GM exited bankruptcy, its polluted factory and land sites were consumed by the Motor Liquidation, allowing the automaker to avoid the responsibility of cleaning up its mess, and state leaders fear there won't be any money to clean the locations.

Before bankruptcy, GM estimated it had $1.9 billion in environmental issues and litigation liabilites. Motors Liquidation Co., though, has only about $1.2 billion to manage the entire wind-down of its affairs -- and as one might expect, attorneys handling the matter are expected to get a huge chunk of that. The figure to clean up sites in places like Buick City (pictured, before the buildings were demolished), Michigan and Massena, New York has been pegged at $530 million. However, the way it's looking, there won't be anywhere near that much money to get the job done.

The affected areas are afraid they will have to pay for the clean ups or simply let the land go unused. The problem with that: those local governments don't have the money. And they can't expect a developer to spend millions to clean up an old mess. If not Motors Liquidation or GM, civic representatives want the government to foot the bill since the current administration orchestrated the deal. No one knows how it will -- or won't -- be resolved, but the EPA has said that it's in touch with states and Motors Liquidation to "identify any environmental cleanup requirements that existed at the time of bankruptcy."

 

[Old Rocks]

An additional tax of 5 cents on the gallon for cleanup of abandoned auto manufacturing sites seems a reasonable solution. Tax the source of the problem to pay for the solution to the problem.