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BP 'Pays' for the Gulf While Getting $308 Million in Federal Grants

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Cotton fields outside of Bakersfield would be replaced by the new power plant. | Photo by Will Evans/California Watch


Cotton fields outside of Bakersfield would be replaced by the new power plant. | Photo by Will Evans/California Watch
Some question what President Obama meant when he said BP was going to “pay” for the tragedy in the Gulf considering BP is currently receiving around $308 million in federal grants to build a power plant in Southern California.

BP co-owns the company Hydrogen Energy California (LLC) with Rio Tinto that is the current recipient of the Department of Energy grant. The grant is the second largest award to a corporation in California.

The $308 million will be going toward to construction of a power plant to create ‘clean coal’, according to California Watch.

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Advocacy groups are split however over their reactions to such news. Public Citizen has asked that BP be barred from any government grants or contacts because of their ‘misconduct’ in the Gulf.

While others are positive about the potential 1,500 construction jobs the project will stimulate. But for the most part, considering controversy over the oil spill, it is more BP’s involvement that concerns people.

Related: Who's Watching the Oil Industry in California