Analysis

Feds' New Settlement Policy May Imperil Restoration Projects

Law360, New York (June 15, 2017, 10:00 PM EDT) -- The U.S. Department of Justice's recent prohibition on letting polluters make donations to third-party environmental groups as part of federal enforcement settlements will cut off a vital source of funding for environmental cleanup and restoration projects, experts say.

The DOJ has commonly incorporated such third-party payments into settlements with polluting companies, sometimes in the form of supplemental environmental projects performed by organizations like Ducks Unlimited, the American Lung Association or the National Fish and Wildlife Foundation — which was given $2.5 billion in 2013 as part of BP Exploration and Production Inc. and Transocean Ltd.'s settlement of criminal charges stemming from...

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