Governor Lincoln Almond's plan to use an oil spill fund to finance the dredging of shipping channels in Narragansett Bay may open the door to money for habitat restoration, environmentalists say. But a look at the budget raises questions about whether enough money will be available to fund both dredging and eelgrass plantings.

During the last three legislative sessions, the state Senate passed legislation to use the Oil Spill Prevention, Administration and Response Fund to finance Narragansett Bay habitat restoration projects, only to see the proposal die without a vote in the House of Representatives. After the bill failed last year, state Senator Teresa Paiva-Weed (D-Newport) and others won a last-minute promise from legislative leaders to set aside $300,000 for the environmental improvement projects. But just as they were to meet to distribute the money in January, legislative leaders told Representative Peter Ginaitt (D-Warwick), chairman of the Joint Committee on Environment and Energy, that no money was available due to the state budget crisis.

Now, Almond is proposing to use the oil spill fund to provide the state's $9 million share of the Providence River dredging project. And Ginaitt and Paiva-Weed are sponsoring the Save The Bay-backed bill that calls for $500,000-a-year for habitat restoration. "Yes, there is sufficient funds to achieve both," says Paiva-Weed. In fact, she says, having the legislature debate using the oil spill fund for dredging gives environmentalists a chance to tack her bill onto Almond's proposal.

Almond spokesman Thomas Kogut notes the governor has supported habitat restoration bills in the past and would back the idea this year, if money is available. Currently, the oil spill fund contains $6.8 million, according to Kogut, and collects about $2.6 million a year through a nickel-a-barrel tax on oil imported to Rhode Island. Almond wants to use $9 million over the next two years for dredging and more than $2 million for ongoing oil spill preparation activities. That would leave less than $1 million over the next two years for habitat restoration.

Oil companies have historically opposed using the fund for habitat restoration, because the nickel-a-barrel tax is repealed once the oil spill fund reaches $10 million. Any drain on the fund, therefore, extends the life of the tax. But Paiva-Weed says the oil industry may not object to Almond's dredging proposal because it will benefit their boats and barges.

She also notes that tapping the oil spill fund is important because a reliable flow of state funds is required to win federal matching funds to build fish ladders, restore salt marshes, and finance other projects beneficial to the bay.

Issue Date: February 22 - 28, 2002