By the Tribune and the AP

In the wake of ongoing public outcry, BP America announced this morning that it will not dump more pollution into Lake Michigan from its Whiting refinery despite the approval granted by Indiana for the increased discharge.

BP’s announcement comes just one day after State Rep. Scott Pelath, D-Michigan City, hosted a hearing in Indianapolis on the contentious BP permit, at which Indiana Department of Environmental Management Commissioner Thomas Easterly defended the state’s permit. On the same day, Gov. Mitch Daniels traveled to Northwest Indiana and, according to regional media reports, also defended the state’s decision.

But today, BP announced that it will not implement the state permit but will instead work over the next 18 months to seek other technologies that would allow it to expand its refinery without increasing the amount of ammonia and total suspended solids discharged into Lake Michigan.

“We are committed to this project. It is important for the nation, it is important for the Midwest, and it is important to BP and to the thousands of BP employees in the state of Indiana,” said Bob Malone, BP America chairman and president. “We are going to work hard to make this project succeed.”

Indiana granted BP a permit allowing the Whiting refinery to dump 54 percent more ammonia and 35 percent more suspended solids into Lake Michigan daily so it could process heavy Canadian crude oil and increase production of motor fuels by about 15 percent.

Instead, BP announced that it will provide a $5 million grant to Purdue University toward the Purdue Calumet Water Institute/Argonne Laboratory Technology Task Force. The task force was recently formed by U.S. Representatives Pete Vislcosky, D-Ind., and Judy Biggert, R-Ill., with the goal of identifying alternatives to increased wastewater discharges.

“Obviously, this is good news,” said Save the Dunes Council Executive Director Tom Anderson of BP’s announcement.

Anderson noted that Save the Dunes has argued that the technology already exists that would allow the oil refinery expansion to go forward without further harming the environment. Save the Dunes Council testified at Pelath’s hearing on Wednesday and presented a 16-page report that identified alternative technologies.

BP’s announcement also drew praise from Visclosky.

"I applaud BP for making a commitment to addressing the energy crisis in an environmentally-friendly fashion. The goal of having no increase in Lake Michigan discharge, while at the same time expanding refining capability, will require new and innovative technologies, and I believe the Purdue Calumet Water Institute/Argonne Laboratory technology task force convened by Congresswoman Biggert and myself provides a perfect opportunity to address these critical issues,” Visclosky said in a statement.

Malone said BP decided not to use the permit because a project such as the one in Whiting “requires regulatory certainty.”

“We have ... obtained a valid permit that meets all regulatory standards and is protective of water quality and human health. Even so, ongoing regional opposition to any increase in discharge permit limits for Lake Michigan creates an unacceptable level of business risk for this $3.8 billion investment,” he said.

Indiana’s permit prompted ongoing public outcry, with opposition that included public officials from Illinois and Michigan. Opponents said the permit amounted to a reversal of decades-long efforts to reduce pollution levels in the lake. The U.S. House passed a resolution in July calling for Indiana to rescind the permit.

After the public outcry, Daniels on Aug. 13 ordered a review of state laws covering Great Lakes water quality and permits. He appointed James Barnes, the former dean of Indiana University’s School of Public and Environmental Affairs and the former EPA general counsel and deputy administrator, to conduct the review.

During the hearing before Indiana’s Administrative Rules Oversight Committee chaired by Pelath, IDEM’s Easterly defended the process, saying his agency felt no “undue pressure” from other state officials to approve the permit.

Posted 8/23/2007