GUNRUNNER US SUPPLIES AGRESSIVE IMPERIALIST INDIA 

India to buy first US armed drones to counter China, Pakistan: Sources

The Indian government is in the midst of a 10-year, US$250 billion military modernisation.PHOTO: AFP

NEW DELHI (BLOOMBERG) - India plans to buy 30 armed drones from the United States to boost its sea and land defences as tensions persist with neighbours China and Pakistan, according to officials with knowledge of the matter.

The South Asian nation will approve next month the US$3 billion (S$4 billion) purchase of 30 MQ-9B Predator drones manufactured by San Diego-based General Atomics, the officials said, asking not to be identified for speaking with the media. The deal would add to India's military capabilities as the drones it has now can only be used for surveillance and reconnaissance.

India is emerging as a strategic defence partner for the US, particularly in countering Chinese influence in the Indian Ocean and some areas of South-east Asia.

Prime Minister Narendra Modi's government is in the midst of a 10-year, US$250 billion military modernisation.

"US-India relations in the present day are the result of decades of dedicated efforts by both countries," Mr Vivek Lall, chief executive for General Atomics, said in an e-mail.

"The fact that defence cooperation remains high on the list of priorities for the bilateral relationship, is a sign of our mutual security objectives," he said.

The spokesmen from India's Defence Ministry and US Pentagon officials did not respond to requests for comment.

US Defence Secretary Lloyd Austin is expected to visit India this month, according to local media, while President Joe Biden will soon join counterparts from India, Japan and Australia in the first-ever meeting of top leaders of the "Quad" bloc.

The leaders will meet virtually on March 12, according to India's Ministry of External Affairs, which said they would discuss issues including supply chains, maritime security and climate change.

The MQ-9B drone can fly for about 48 hours and carry a payload of about 1,700kg. It will give the Indian Navy the ability to better monitor Chinese warships in the southern Indian Ocean, and equip the army to engage targets along the disputed India-Pakistan border in the Himalayas.

Last year, India leased two unarmed MQ-9 Predators as border tensions with China threatened to spin into a full-blown conflict. In the end they were not deployed after the Air Force expressed apprehension about drones manned by US personnel flying over the border.

LA REVUE GAUCHE - Left Comment: Search results for PERMANENT ARMS ECONOMY 

Microsoft Responds to China Cyber Attack by Expanding Business in China

Hack of 60,000 customers won't affect Microsoft's cozy relationship with CCP

Microsoft cofounder Bill Gates and Chinese premier Li Keqiang in 2017 (Thomas Peter/AFP via Getty Images)

Yuichiro Kakutani - MARCH 9, 2021 5:20 PM

Microsoft responded to a Chinese government hack that compromised more than 60,000 of its customers by expanding operations in the repressive regime.

Microsoft acknowledged on March 2 that Chinese "state-sponsored" hackers used vulnerabilities in Microsoft Exchange's software to install malware and access the emails of thousands of victims. The tech company has nevertheless barreled forward in its Chinese business plan, announcing on March 4 that it will expand its cloud computing service Azure. The move is meant to "empower" Chinese citizens, who live in a country with some of the most heavily censored and monitored webspace in the world.

"Our intelligent, trustworthy, and neutral cloud platform has been empowering hundreds of thousands of developers, partners, and customers from both China and the world to achieve more with technical innovation and business transformation," Alain Crozier, Microsoft's head for the Greater China Region, said in a statement.

The Azure expansion is the latest sign that the Chinese hacking campaign has had little impact on Microsoft's decades-long relationship with China. The U.S.-based tech company has outsourced a large portion of its research and development department to the authoritarian country, where it has had a presence since 1992. The company also partnered with a Chinese military university to conduct research into artificial intelligence.

Microsoft did not respond to a request for comment.

The global cyber attack has claimed a number of high-profile victims, including the European Banking Authority and thousands of businesses. The Biden White House said the hackers remain an "active threat" and that companies should patch up their softwares as soon as possible. The Chinese government has so far denied responsibility for the hacking campaign.

The Azure expansion plan will build a new cluster of data centers in northern China, speeding up the cloud service for Chinese users in the region, according to a press release. The cloud service employs Chinese company 21Vianet as a local partner. As China's leading data service provider, 21Vianet also conducts business with other Chinese tech companies such as Alibaba and Huawei, which U.S. officials say act as conduits for Chinese state espionage.

The Azure cloud computing service includes facial recognition software, a feature that might be attractive for authoritarian regimes. The company touts that "no machine learning expertise is required" to operate the program, which can search through a repository of up to one million people. Chinese authorities are increasingly using facial recognition to police their citizens, including the Muslim Uighurs in Xinjiang.

Microsoft has nurtured a close relationship with Chinese entities over the course of nearly three decades, counting more than 17,000 partners in the authoritarian country. Despite the pandemic, Microsoft has continued to recruit even more local business partners. In December, Microsoft said it partnered with Huawei's spinoff company to build laptops in the country.

Microsoft also built its largest R&D base outside of the United States in China, employing more than 3,000 engineers and researchers located across four separate Chinese cities. The American company said its Chinese R&D division will contribute to China's prosperity.

"Microsoft Asia-Pacific R&D Group's teams are spread across the region … Located in tech parks and recognized hubs for innovation, these campuses are strategically positioned to take advantage of— and contribute to— China's rapid transformation to an innovation economy," the company said on its website.

Microsoft Responds to China Cyber Attack by Expanding Business in China - Washington Free Beacon

CRIMINAL CAPITALI$M

Calls for Scottish minister to provide assurance over potential steel company meltdown

The future of Scotland’s surviving steel and aluminium plants have been thrown into doubt after the collapse of a finance firm, which also potentially exposes the Scottish Government to its massive losses after it guaranteed to underwrite a hydro-electric power station and aluminium smelter near Fort William in a deal to save the plants.

Sanjeev Gupta at the Lochaber plant.

Demands have now been made for economy secretary Fiona Hyslop to appear in Parliament to explain the the impact of Greensill Capital entering administration on the Liberty Steel businesses in Scotland.

It is understood that billionaire steel tycoon Sanjeev Gupta, who owns Liberty Steel, owes Greensill more than £3 billion.

However, he has moved to quell concerns, telling workers’ unions that his parent firm GFG Alliance was in the process of securing alternative funding and would survive the collapse of its major backer.

Mr Gupta, who was hailed as the “saviour of steel”, said some of Liberty Steel's UK operations were loss-making and this needed to be addressed.

Speaking after crisis talks with unions following specialist bank Greensill Capital going into administration, Mr Gupta said his group was taking "prudent steps" to manage cash and was seeking new funding.

The failure of Greensill has left many fearing that thousands of jobs at Liberty Steel’s assets in the UK could be at risk. These include those who work at the Lochaber aluminium smelting plant, to which the Scottish Government has provided more than £500 million of guarantees, and the steel plant in Motherwell.

It is believed Mr Gupta persuaded the Scottish Government to give a 25-year guarantee tied to the hydro-electric power station and aluminium smelter.

Using the guarantee, which committed the Scottish Government to buying the plant's electricity if the smelter shut down, finance firm Greensill issued about £575m of top-rated bonds in 2017 to Swiss fund manager GAM.

In return, Mr Gupta pledged to save 170 jobs at the smelter and create 2,000 more at a separate aluminium-wheel factory, which would make two million aluminium wheels a year by 2020.

The factory has not been built and it is understood Mr Gupta is considering opening a water bottle factory instead.

However, after administrators were appointed on Monday, Greensill said in a court filing that Mr Gupta's operations were in "financial difficulty" and defaulting on debt.

Scottish Liberal Democrat leader Willie Rennie said it was now vital that Ms Hyslop make a statement to Parliament on the future of Liberty Steel’s Scottish sites.

"The Scottish Government once again find themselves mired in murky business,” he said.

"When the Government provided guarantees in December 2016, they made big promises about a shining future for the Lochaber smelter. Now it seems that the smelter's parent firm are in trouble and Scottish taxpayers could be on the hook.

"Just as with the BiFab yards in Fife, the Scottish Government are good at handing out money to financiers and hopeless at providing high wage, highly-skilled jobs for Scottish workers.

"The economy secretary needs to come to Parliament and explain what's next for workers and taxpayers."

Scottish Conservative Highlands and Islands MSP Jamie Halcro Johnston said the news of the collapse of Greensill had come as a “complete shock” as just "a matter of weeks ago came the positive news of an expansion at Lochaber”.

"It is a vital local industry which employs almost 200 workers and it's incumbent on the SNP to explore all options to ensure the survival of this site and those in Motherwell and elsewhere in the UK,” he said. “We need to do everything possible to preserve jobs."

His colleague, Scottish Conservative finance spokesperson Murdo Fraser, said the government’s finance minister Kate Forbes needed to “provide urgent clarity, specifically in relation to how much taxpayers' money may be at risk and what is being done to address that”.

"As seen with BiFab, the ferries fiasco and other scandals, this SNP Government has a reverse Midas touch when it comes to business,” he said.

"They must explain what is going on, the terms of these agreements and do everything possible to insulate public funds from unnecessary loss."

Greensill Capital, which has funded Mt Gupta's businesses expansion, was tipped into administration last week when one of its main backers, Credit Suisse, suspended £7.2bn of investment funds.

Greensill had used that investment to fund its supply chain finance deals, which provided huge sums to Mr Gupta's business.

In a statement after a meeting with union representatives, a spokesperson for GFG said: “Sanjeev had a productive meeting with the unions to discuss the plan to make the parts of the UK businesses facing weak market conditions more financially sustainable and address the disruption caused by the situation at Greensill.

“Liberty Steel Group has provided significant support to the UK speciality steel business, which has seen the demand for some products fall by 60 per cent following the downturn in the aerospace sector due to Covid-19.

“As part of the prudent steps we are taking to manage cash, we are discussing new opportunities with customers and suppliers to improve cash flow and looking to secure additional working capital facilities to support the business.”


In a joint statement, unions Community, GMB and Unite said: “The meeting was positive and constructive and it is clear Mr Gupta intends to secure a refinancing of the debt to provide the business with the necessary liquidity going forward.”

A Scottish Government spokesperson said: “Funding sources available to the GFG Alliance are commercial matters for the business.

“The Scottish Government has a comprehensive security package relating to the guarantee Scottish ministers provided to the Lochaber aluminium smelter in 2016.

“We maintain regular dialogue with the GFG Alliance covering a range of its industrial interests in Scotland across steel, aluminium and renewable energy production.”

#SPACERACE2.0

Russia and China are going to build a Moon base together, and NASA isn’t invited

A shot of the lunar surface. Image source: NASA

By Mike Wehner @MikeWehner
March 9th, 2021 BGR

The United States and Russia might be old Cold War enemies — and tensions between the two countries in the present day aren’t exactly great, either — but when it comes to space exploration, NASA and Russia’s Roscosmos have long been allies. That relationship, like any, has not been perfect, but it’s still a bit of a shock to see that Russia now plans to start a lunar base and, instead of NASA, it is choosing China’s space program as its partner.

As Ars Technica reports, the agreement was announced by Roscosmos, with the heads of the Chinese National Space Administration and Russia’s Roscosmos signing off on the deal. The facility is to be known as the “International Lunar Science Station,” and while many of the details are still to be worked out, NASA isn’t currently in the loop.

It’s no secret that China is rapidly advancing its space exploration programs. The CNSA is attempting to make up for decades US and Russian space superiority and, to be totally fair, it’s doing one heck of a job. China has already accomplished a number of “firsts,” including landing a spacecraft and rover on the far side of the Moon for the first time in history, as well as returning lunar samples from the surface of the Moon remotely in a matter of days.

China has said that it wants a constant presence on the Moon, but plans were scarce. Now, with Russia and China shaking hands on a deal to build a lunar base, it would seem as though there’s nothing standing in either country’s way. This, of course, puts NASA and the United States in a very difficult spot.

The International Space Station exists because of both the United States (NASA) and Russia (Roscosmos). Partner organizations like the European Space Agency and Japan’s JAXA have also played a part, but the orbiting laboratory wouldn’t exist in its current state without both NASA and Roscosmos doing most of the planning, upgrading, and heavy lifting. China is not allowed on the International Space Station, and that’s a decision that was made early on. In recent years, the European Space Agency has tried to mend ties between the scientific bodies in the US and China, asking that China be allowed to send astronauts to the ISS and conduct science there. The United States said no.

So, now that Russia and China are going to play ball in space — with China, the ESA, and Russia all conducting various missions in partnership with one another over the years — NASA is essentially the odd one out. NASA has its own plans for a return to the Moon with the Artemis program, but Russia has not pledged to follow the “Artemis Accords,” which is an agreement between partner nations to share scientific data and abide by a specific code of conduct. China never had a chance to pledge its signature due to NASA being prohibited from working with China as part of a law passed by Congress in 2011.

Mike Wehner has reported on technology and video games for the past decade, covering breaking news and trends in VR, wearables, smartphones, and future tech. Most recently, Mike served as Tech Editor at The Daily Dot, and has been featured in USA Today, Time.com, and countless other web and print outlets. His love of reporting is second only to his gaming addiction.

ANTHROPOMORPHISM KIND OF

Fantasy creature from The Neverending Story 'spotted' in Taiwan's rocky terrain

MARCH 08, 2021

By VIVIAN HSIAOTHE CHINA POST/ASIA NEWS NETWORK

Many claimed the boulder bore a striking resemblance to the lucky dragon "Falkor" from "The Neverending Story."
Facebook/愛天樂 and Contantin Film

TAIPEI — Foreigners living in Taiwan are often attracted to the island’s rich ecology, and they sometimes find scenes that remind them of home.

An expat recently shared a picture of a rock bearing a striking resemblance to a dog’s head, which evoked childhood memories and struck a chord with other social media users.More from AsiaOneRead the condensed version of this story, and other top stories with NewsLite.

According to CNA, the photo was originally captured by social media user “Ai Tien Le” at the “Ruifeng Bridge” in Ruifeng Village, Meishan Township, Chiayi County.

They had gone to take pictures of the rocks in the stream and accidentally came upon a large one, which they then posted on Facebook.

It received numerous positive comments, and the dog-shaped rock was also praised as very cute.

Ai Tien Le explained that they had travelled to the area on Jan. 29, and parked their car at the top of the river.

After further inspection, they realised that the big boulder in the middle of the river closely resembled that of a sleeping dog sipping the river’s water.

The photo also attracted the attention of foreign social media users who claimed that the “dog” actually looked like the lucky dragon “Flalkor” in the 1984 German fantasy film “The Neverending Story.”

In the movie, Falkor had the body of a dragon complete with scales, with a benevolent dog’s head. It also played a huge part in the film, helping the young boy complete his adventures, becoming a beloved character of many.

PHOTO: Contantin Film

The Falkor-like boulder received widespread attention online with one commenting that they are happy to know its final resting place.

With the boulder’s new identity, fans of the movies will surely trek to the area to see for themselves the legendary character of their childhoo

Where Millennials end and Generation Z begins | Pew Research Center

CLIP & SAVE

Broad Public Support for Coronavirus Aid Package; Just a Third Say It Spends Too Much

Pew Research

More Americans say the Biden administration made a ‘good faith’ effort working with opposition than say the same of GOP leaders

How we did this


As the House of Representatives prepares to give final approval to the Biden administration’s $1.9 trillion coronavirus relief package, a sizable majority of U.S. adults (70%) say they favor the legislation. Only about three-in-ten (28%) oppose the bill, which provides economic aid to businesses, individuals and state and local governments.

While congressional votes on the legislation have been deeply divided along partisan lines, 41% of Republicans and Republican-leaning independents support the measure. The bill draws overwhelming support from Democrats and Democratic leaners (94% favor).


In assessing the proposed spending in the aid package, 41% of Americans view it as about right, while another 25% say it spends too little; only a third of Americans say the legislation spends too much money. Republicans are far more likely than Democrats to view the spending in the bill as excessive (61% of Republicans vs. 11% of Democrats).

The new national survey by Pew Research Center, conducted on the Center’s nationally representative American Trends Panel March 1-7, 2021, among 12,055 adults, finds that a majority of the public (57%) says the Biden administration made a good faith effort working with Republican congressional leaders on the coronavirus aid package.

By comparison, 42% say GOP leaders made a good faith effort to work with the White House on the pandemic relief bill, with a 55% majority saying they did not work in good faith.
Across demographic groups, large shares of the public support the federal aid package


While most Americans favor the coronavirus aid package, there are demographic differences in the levels of support.

Three-quarters of women say they favor the aid package, while a smaller majority of men (66%) say the same.

While overwhelming majorities of Black (91%), Hispanic (80%) and Asian American adults (76%) say they favor the economic package, that compares with a smaller majority of White adults (63%).

There are also substantial differences in views of the economic stimulus package by household income. About eight-in-ten Americans in lower-income households (82%) favor the bill, compared with two-thirds of middle-income and 60% of upper-income Americans.

Although a 57% majority of Republicans say they oppose the proposed stimulus bill, there is a substantial ideological divide within the GOP: Roughly seven-in-ten conservative Republicans (69%) say they oppose the economic package, while the balance of opinion is reversed among moderate and liberal Republicans, 61% of whom say they favor the aid bill.

By contrast, there is near-universal support for the economic bill among Democrats: More than nine-in-ten (94%) say they favor the COVID-19 economic aid package.


Among Republicans, there are wide differences in support for the economic package by household income. A 63% majority of lower-income Republicans and Republican leaners (who make up 25% of all Republicans and Republican leaners) say they favor the proposed economic package. By comparison, 37% of Republicans in middle-income households (50% of Republicans) and just 25% of upper-income Republicans (21% of all Republicans) favor the bill.

There are no substantial differences by income among Democrats.

About four-in-ten Americans (41%) say the proposed spending on the bill is about right, while a third say the proposed spending in the bill is too much and a quarter say the amount of allocated money is too little.


While about four-in-ten of those in all income groups say the spending in the aid package is “about right,” Americans with lower incomes are more likely than others to say the amount of spending in the COVID-19 economic package is “too little” (and less likely to say it is “too much”).

About four-in-ten lower-income Americans (37%) say the bill spends too little, compared with 22% of middle-income and 13% of upper-income Americans. Conversely, 46% of upper-income Americans say the bill spends too much; just 20% of lower-income Americans say this.

Partisans also differ in these views: A majority of Democrats (56%) say spending for the bill is about right, with a third saying it is too little and just 11% saying it is too much. In contrast, most Republicans (61%) say the bill is spending too much.

Reflecting the income pattern among all Americans, within both partisan groups, those with lower incomes are more likely than those with higher incomes to say the proposed spending on the economic bill is not enough.

For example, while more than a quarter of lower-income Republicans (27%) say the proposed spending in the aid package is too little, just 11% of middle-income and 6% of upper-income Republicans say the same. Fully 81% of upper-income Republicans say the proposed spending in the economic aid package is too much, a view held by 42% of lower income Republicans.

Similarly, lower-income Democrats (42%) are more than twice as likely as upper-income Democrats (20%) to say that spending is too little. Still, half or more Democrats across income levels say the level of spending is about right.

CONTINUE READING

Most Americans support $1.9 trillion COVID-19 aid package; just a third say it spends too much | Pew Research Center

1/3 IS THE GOP BASE

CRIMINAL CAPITALI$M 

'It definitely stinks': Lawmaker demands investigation of huge stock buy just before DeJoy announced USPS vehicle contract

Jake Johnson, Common Dreams
March 09, 2021

Louis DeJoy (YouTube/screen grab)

A Democratic congressman is demanding that the Securities and Exchange Commission investigate a shady $54 million purchase of Oshkosh Corporation stock just hours before scandal-ridden Postmaster General Louis DeJoy announced the decision to award that company with a lucrative 10-year contract to produce a new, largely gasoline-powered fleet of U.S. Postal Service delivery trucks.

"This contract was awarded to Oshkosh Corporation and is worth up to $6 billion," Rep. Tim Ryan (D-Ohio) wrote in a letter to Acting SEC Chair Allison Herren Lee on Monday. "I write to pass along reports of what might be unusual trading of Oshkosh stock that took place less than 24 hours before Postmaster General Louis DeJoy publicly announced the contract decision in front of a House panel on February 23rd."

"It definitely stinks and needs to be looked into at the highest levels. If that is not suspicious, I don't know what is. Somebody clearly knew something." 

—Rep. Tim Ryan

"Specifically, an over $54 million purchase of OSK, made 20 hours before Mr. DeJoy's announcement, was brought to my attention on social media and in news reports," Ryan continued. "Additionally, it is my understanding that the OSK stock rose significantly prior to the announcement. Given the gravity and serious implications of this contract, I am writing to request that the Securities and Exchange Commission look into this issue as soon as possible."

Ryan's letter comes after he joined two fellow Ohio Democrats—Rep. Marcy Kaptur and Sen. Sherrod Brown—in urging President Joe Biden to halt the Oshkosh contract over concerns about "inappropriate political influence in the process."

The Postal Service, under the leadership of DeJoy and Trump-appointed governors, selected Oshkosh for the contract over Workhorse, a truck-maker that had bid to replace the Postal Service's current delivery vehicles with an all-electric fleet.

As Bloomberg reported, Workhorse had initially "been viewed as the favorite" to win the contract, "especially after President Joe Biden ordered the government to utilize emissions-free vehicles. But Oshkosh won the bid last month with a fleet that will be mostly gasoline-powered."

"It definitely stinks and needs to be looked into at the highest levels," Ryan said of the contract, and the trading that preceded it, in an interview with Bloomberg. "If that is not suspicious, I don't know what is. Somebody clearly knew something."

In a letter last week, Kaptur, Brown, and Ryan said they were "troubled" that the Postal Service "awarded an initial contract to provide up to 165,000 new postal vehicles over the next decade without any commitment to making these vehicles either hybrid or 100% electric."

"This contract is not only an investment in America workers and our domestic manufacturing sector, but it is an opportunity for our nation to regain its role as a leader in clean technology manufacturing," the lawmakers wrote. "This contract will have consequences for decades to come and, as such, we have serious concerns it could be a wasted opportunity to address the climate crisis and the reindustrialization of our manufacturing sector."

"Postmaster General Louis DeJoy's tenure has been a disaster for the American people and the USPS's dedicated workforce," the lawmakers continued. "From ill-advised policies that have delayed the mail and life-saving medicines to seniors and veterans, to an utter disregard for the agency he leads. This week's announcement further calls into question his judgment, his ability to effectively run the USPS, and his short-sightedness at this agency that plays a critical role in our nation.

Congressman asks SEC to investigate $54 million trade in Oshkosh just hours before announcement of USPS fleet-contract

mfox@businessinsider.com (Matthew Fox) 14 hrs ago

© USPS USPS NGDV. USPS

Congressman Tim Ryan has asked the SEC to investigate a $54 million trade in Oshkosh stock that took place just hours before the USPS awarded a contract to the firm.

The USPS has been working to upgrade its fleet of vehicles and Workhorse Group was viewed as the favorite.

"It definitely stinks and needs to be looked into at the highest levels," Ryan said in an interview.

The US Postal Service's decision to award a contract worth as much as $6 billion to Oshkosh to upgrade its delivery fleet is being met with scrutiny from Democrats, including Ohio Congressman Tim Ryan.

In a letter on Monday, Ryan asked the Securities & Exchange Commission to investigate a $54 million trade in shares of Oshkosh that was made just hours before the USPS officially announced its decision to award the contract to them.

"I write to pass along reports of what might be unusual trading of Oshkosh stock that took place less than 24 hours before Postmaster General Louis DeJoy publicly announced the contract decision in front of a House panel on February 23rd," Ryan wrote.

"Specifically, an over $54 million purchase of OSK [was] made 20 hours before Mr. DeJoy's announcement," Ryan added.

The announcement by DeJoy sent shares of Workhorse Group, which was viewed as the favorite to win the contract, plunging by more than 50%. Shares of Oshkosh briefly surged following the announcement, but those gains have since evaporated.

"It definitely stinks and needs to be looked into at the highest levels," Ryan said in an interview with Bloomberg.

Part of the pushback on the Oshkosh contract by Democrats is based on the fact that Workhorse Group would have delivered an all-electric fleet of vehicles to the USPS. Instead, the awarded Oshkosh contract will replace just a small portion of the fleet with electric vehicles.

"I am writing to request that the Securities and Exchange Commission look into this issue as soon as possible," Ryan concluded in his letter.

On Monday, a group of Democrats in the House of Representative introduced legislation that could give Workhorse another shot at selling electric vehicles to the USPS. Workhorse jumped nearly 30% in Monday trades following the development.

Workhorse owns a 10% stake in Lordstown Motors, which is based in Congressman Tim Ryan's Ohio district.

Far from White House, Caribbean refinery to test Biden's promises on poverty and pollution


“They made a lot of money off the people of the Virgin Islands and when it got difficult, they shut the plant down,” Ritter said. “We felt used.”

By Laura Sanicola

(Reuters) - Earlier this month, Loren Hughes, a longtime resident of the U.S. Virgin Islands, noticed specks of an oily substance covering his home, as well as those owned by his neighbors.


FILE PHOTO: Installations of the Limetree Bay petroleum refinery are seen in St Croix, U.S. Virgin Islands June 28, 2017 when they were owned by Hovensa. REUTERS/Alvin Baez

For Hughes, 46, it brought back memories of the last time St. Croix’s long-idled refinery was operating, roughly a decade earlier. The refinery restarted last month, bringing back hundreds of jobs - but for nearby residents, they say it also brought difficulty breathing, headaches and watery eyes.

“Sometimes it’s like sulfur or rotten eggs. The other smells are unexplainable,” Hughes said. (H2SO4 HYDROGEN SULPHIDE HIGHLY TOXIC)

The U.S. Environmental Protection Agency wants the refinery’s owners, Limetree Bay Ventures, to increase its monitoring of air quality due to emissions affecting the nearby neighborhoods, but the owners have so far balked.

St. Croix is a long way from the U.S. mainland. But the battle over the refinery’s pollution on this Caribbean island and tourist resort is one of the first tests of how the Biden administration will prioritize environmental justice.

As the United States has become the world’s largest fossil fuel producer, opponents have grown more vocal about how many projects, particularly in the petrochemical and refining industries, are situated near low-income areas with large minority populations.

The Biden administration has vowed to make sure new energy projects do not unfairly harm those communities, such as the ones living near the refinery. About 90 million Americans live within 30 miles (50 km) of at least one refinery, according to environmental group Earthjustice.

“This situation offers the first opportunity for the Biden-Harris administration to stand up for an environmental justice community, and take a strong public health and climate chance stance concerning fossil fuels,” said John Walke, senior attorney and director of clean air programs with the Natural Resources Defense Council

After a decade idle, the Limetree Bay refinery restarted this year with plans to process up to 200,000 barrels of oil a day into gasoline and other fuels. Limetree Bay Ventures also received strict conditions from the U.S. EPA, which told the company that it had to add enhanced air quality monitoring.

Limetree Bay, backed by private equity firms EIG and Arclight Capital, is appealing that directive, saying the monitors are not necessary and their operating cost is not Limetree’s responsibility.

A Reuters examination of publicly available EPA data shows the refinery is also currently not monitoring sulfur dioxide levels near the plant, as required. Limetree declined several requests for comment on this issue.

A spokesperson for EIG representing the refinery told Reuters it is committed to excellent environmental performance and considers it fundamental to the company’s success. Arclight did not respond to requests for comment.

St. Croix residents are torn between dealing with the effects of pollution and the benefits of high-paying jobs that offset the loss of tourism dollars amid the coronavirus pandemic.

“When you are talking about people who are poor, they’re not going to criticize the refinery that gives them jobs,” said Virginia Clairmont, a community activist who meets with company representatives quarterly.

A 2020 study by researchers at University of Texas Medical Branch concluded that living within 30 miles of an oil refinery was associated with increased risk of multiple cancer types.

A DECADE-LONG SAGA

The permit Limetree Bay Ventures is fighting was issued during the Trump administration, but it is now up to the Biden administration to enforce it - as it considers even stricter controls.

The refinery, formerly known as Hovensa, produced more than 500,000 barrels of product per day before joint owners Hess and Venezuela’s state-run oil company shut it down in 2012 following violations of the U.S. Clean Air Act. The company cited the global economic slowdown and competition with new refineries in emerging markets.

As it planned to reopen, Limetree in 2018 filed for a permit allowing the company to expand and construct additional units without being deemed a new source of pollution, which would require stricter pollution controls. Trump’s EPA granted the permit, as long as emissions were kept under “plantwide applicability limit.”

In a 2019 report here on Limetree, the EPA said it is difficult to conclude that Limetree Bay's emissions would not hurt nearby residents' health and quality of life. It later required Limetree Bay Ventures to add five air monitors in exchange for the permit.

Limetree Bay has appealed that ruling with the EPA’s Environmental Appeals Board (EAB), a little-known independent U.S. tribunal comprised of four judges that rule on such disputes.

In its appeal, Limetree said the EPA requirements are linked to environmental justice concerns that are unrelated to operating within the pollution limits of the permit.

It is unclear when the EPA’s appeals board will rule on the permit dispute. The Biden-run EPA could withdraw the permit, and it is also reviewing whether the refinery is a new source of pollution that requires stricter air pollution controls.

The White House declined to comment.

If the EAB sides against Limetree, the company has the right to appeal to a federal court. The EPA cannot appeal EAB rulings.

(GRAPHIC - Limetree Bay Refinery Air Monitoring: )

‘QUALITY JOBS’

The restart has created 400 full-time jobs, 80% of which must go to island residents, who mainly rely on tourism for employment

“In these difficult economic times, I am very pleased that the refinery is creating hundreds of well-paying, quality jobs for USVI workers,” St. Croix Governor Albert Bryan Jr. said in January.

Officials estimate the refinery could bring in $7 million in tax revenue annually to the cash-strapped island of 105,000 people. The U.S. territory has a $4 billion unfunded pension liability that is roughly equal to the island’s entire gross domestic product, according to Austin Nibbs, administrator of USVI Government Employees’ Retirement System (GERS).

The refinery should pay the costs of air monitoring, said John Willard, 69, a retired St. Croix school principal with a government pension. “It’s their duty and responsibility to make sure the communities are functioning in remain as healthy as possible and as clean as possible for air,” he said.

Environmental groups, including the St. Croix Environmental Association, are challenging the permit, saying the permit issued by the Trump-era EPA gives Limetree too much leeway to pollute.

An EIG spokesman said the 2020 permit will “give Limetree the flexibility to explore more projects at the refinery that could lead to more local jobs and investment.”

Many residents agree the jobs are needed, but the memory of previous owners remains fresh. Jelani Ritter, who supports the refinery restart, recalls how previous owners filed for bankruptcy, avoiding the U.S. Department of Justice’s order to pay $700 million for pollution controls in 2011 after a series of incidents sickened residents.

“They made a lot of money off the people of the Virgin Islands and when it got difficult, they shut the plant down,” Ritter said. “We felt used.”

(This story has been refiled to restore dropped word ‘justice’ to quote in paragraph eight)


Reporting by Laura Sanicola in New York; Additional reporting by Gary McWilliams in Houston; Editing by David Gaffen and Lisa Shumaker

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