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Trains carry millions of gallons of oil across ME

Written By Unknown on Senin, 25 Maret 2013 | 00.52

PORTLAND, Maine — Millions of gallons of crude oil from the nation's heartland are crossing Maine in railroad tank cars bound for a Canadian oil refinery, raising concern among environmentalists and state officials about the threat of an accident and spill.

The oil is primarily coming from the Bakken shale-oil field in North Dakota, with lesser amounts from neighboring Canada, where oil production has boomed in recent years. Trains carried nearly 5.3 million barrels of the light crude — more than 220 million gallons — across the state and into New Brunswick last year, and the volume is growing.

Railroads that operate in Maine say the increased business has resulted in more jobs and investment in the state. Moving oil by train is perfectly safe, railroad officials say, with upgraded tracks and modern tank cars.

"The statistics tell you how much has been transported (in Maine), but to the best of my knowledge, there hasn't been any spilled or released," said Robert Grindrod, president and chief executive of Hermon-based Montreal, Maine and Atlantic Railway Ltd., which carried nearly 3 million barrels of oil across Maine last year.

The more oil that's shipped, the greater the likelihood of a spill, said Glen Brand of the Sierra Club. It was fortunate that oil didn't spill into the Penobscot River when a Pan Am Railways oil train derailed March 7 in Mattawamkeag about 100 yards from the river, he said. Only a tiny amount of oil spilled — a state official said it was measured in drips — and Pan Am officials said it likely was residue that had spilled onto the seals of a couple of tank car covers when the cars were filled.

"We got very lucky there that the accident didn't lead to contamination of the river," Brand said. "The more they ship, the more that trains go back and forth, the better the chance there'll be a problem."

What's happening in Maine is happening across the country as U.S. oil production has increased, much of it in areas with limited pipeline capacity. North Dakota oil production doubled between 2010 and 2012.

Because of limited pipeline capacity in the Bakken region, oil producers are using railroads to transport much of the oil to refineries on the East, Gulf and West coasts, as well as inland, according to the Association of American Railroads. The same is true at other shale oil fields that use hydraulic fracturing, or "fracking," to extract oil, the association said.

Five years ago, U.S. trains transported just 9,500 carloads of oil, the association said. The number grew to 65,751 carloads in 2011 before jumping 256 percent last year, to 233,811 carloads.

The mile-long trains bound for the Irving Oil refinery in Saint John, New Brunswick, travel two routes through Maine, typically pulling 80 to 85 tank cars.

Pan Am Railways' trains come through Massachusetts and travel up the same tracks used by the Amtrak Downeaster passenger trains through southern New Hampshire and Maine. They continue into central and eastern Maine before crossing into Canada at Vanceboro and finishing in Saint John.

Montreal, Maine and Atlantic's trains enter the state from Quebec near Jackman in western Maine and travel straight across the state to Canada, also crossing at Vanceboro.

Railroad and state officials said they're aware of only shale oil being transported across Maine and don't know of any so-called tar sands oil coming through.

Environmentalists in the U.S. and Canada have been raising the alarm about the possibility of sands oil from western Canada — which critics call the dirtiest oil on earth — being transported through an oil pipeline that runs through northern New England. The pipeline now carries oil from Portland to refineries in Montreal, but environmental groups say plans are in the works to reverse the flow of the pipeline so thick sands oil can be pumped from Montreal to Portland, where it could be loaded onto ships and taken elsewhere.

The Maine Department of Environmental Protection has concerns about the increasing amount of oil being transported across the state and has begun developing protection plans for the areas where the trains travel, said spokeswoman Samantha Warren.

The department is mapping sensitive natural resources, water bodies, drinking water sources and access points in remote areas, Warren said, as well as developing strategies on how best to respond to spills.

Because each tank car holds some 30,000 gallons of oil, a derailment and spill could be devastating to the environment, she said. But the reality is that the 400,000 home heating oil tanks in Maine pose a bigger threat than the oil trains, she said.

Over the past 15 years, such tanks have spilled oil about 500 times a year adding up to more than 17,000 gallons annually, she said.

Pan Am Railways has spent several million dollars upgrading its tracks in Maine, in large part because of increased traffic generated by oil, said Cynthia Scarano, executive vice president of the Massachusetts-based railroad.

Railroads are simply filling a need, she said.

"The capacity isn't there among pipelines for what we need," she said. "Rather than building new pipelines, we're using something we already have."


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Cyprus turns to Brussels for help on bailout

BRUSSELS — After failing for a week to find a solution at home to a crisis that could force it into bankruptcy, Cypriot politicians were turning to the European Union on Sunday in a last-ditch effort to help the island nation forge a viable plan to secure an international bailout.

Politicians are under pressure to come up with a solution quickly, with the European Central Bank threatening to stop providing emergency funding to Cyprus' banks after Monday if there is no agreement on a way to raise 5.8 billion euros ($7.5 billion) needed to get a 10 billion euro rescue loan package from the International Monetary Fund and the other European countries that use the single currency.

If Cyprus fails to secure a bailout, some of its ailing banks could collapse within days and rapidly drag down the government and possibly force it out of the euro, a huge threat to the stability of the currency used by more than 300 million people in 17 EU nations.

Despite the danger, Europe's biggest economy maintained a hard line. German Finance Minister Wolfgang Schaeuble said "if possible we want to avoid seeing Cyprus sliding into insolvency."

But, he added in an interview with the German newspaper Welt am Sonntag published Sunday that Cyprus cannot expect compromise over the threat of bankruptcy and possibility it could leave the eurozone.

"I'm also known for not giving in to blackmail, by nobody and nothing," he said.

The original plan, agreed to in marathon negotiations earlier last week, called for a one-time levy on all bank depositors in Cypriot banks. But the proposal ignited fierce anger among Cypriots and failed to garner a single vote in the Cypriot Parliament.

The idea of some sort of deposit grab has returned to the fore after Cyprus' attempt to gain Russian financial aid failed this week, with deposits above 100,000 euros at the country's troubled largest lender, Bank of Cyprus, possibly facing a levy of up to 25 percent.

Cypriot President Nicos Anastasiades and his finance minister traveled to Brussels for meetings with European Union leaders.

European Council President Herman Van Rompuy was chairing a meeting, but a spokesman insisted his role was not to force a deal but to encourage discussion.

To avoid bankruptcy or the collapse of its banking system, Cyprus needs significantly more than the 10 billion euros the international creditors are willing to lend it. They fear that more loans would balloon the country's debt level to an unsustainable level. For that reason, the country must somehow raise the additional money.

Cyprus has "to fulfill a difficult mission to save the Cypriot economy and avert a disorderly default threatening the economy if there is no final deal for the loan agreement," government spokesman Christos Sylianides said in a written statement Sunday.

Officials fear that a Cypriot bankruptcy, which would likely force the country to become the first eurozone member to leave the currency bloc, would roil markets and result in uncertainty that could engulf other weaker eurozone nations, leading to capital flight and higher government borrowing costs.

Anastasiades was also set to meet IMF Chief Christine Lagarde and ECB President Mario Draghi.

If the Cypriots agree to a plan on Sunday, the IMF, European Central Bank and European Commission will then determine whether it meets the requirement that Cyprus' debt, including any new bailout loan, be sustainable over the long run.

Any new proposal would then have to be approved Sunday evening by the Eurogroup, the gathering of finance ministers from the 17 EU countries that use the euro currency.

Their decision might come only as a broad political agreement, with technical details to be hammered out in the coming days. But without an agreement in principle, the ECB is likely to pull the plug on the country's banking system.

Cyprus already took significant steps toward cementing a new plan Friday night, when lawmakers voted to restructure ailing banks, restrict financial transactions in emergencies and set up a "solidarity fund" that should act as the vehicle for raising funds from investments and contributions.

The bank restructuring will include the country's second largest lender, Laiki, which suffered heavy losses after being exposed to toxic Greek debt. The restructuring and the sale of Greek branches of Cypriot banks are expected to significantly lower the 5.8 billion euros that the country needs to raise on its own to secure the rescue loan package.

Cypriot banks have been closed this past week while the plan was being worked out, and are not due to reopen until Tuesday. Cash has been available through ATMs, but many have run out quickly.

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Associated Press writer Elena Becatoros in Nicosia, Cyprus, contributed to this story.

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Don Melvin can be reached at https://twitter.com/Don_Melvin

Juergen Baetz can be reached at http://www.twitter.com/jbaetz


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As casinos struggle, tribes seek more federal aid

LEDYARD, Conn. — Once the envy of Indian Country for its billion-dollar casino empire, the tribe that owns the Foxwoods Resort Casino has been struggling through a financial crisis and pursuing more revenue from an unlikely source: U.S. government grants.

The money provided annually to the Mashantucket Pequot Tribal Nation through the Interior Department and the Department of Health and Human Services has risen over the last five years to more than $4.5 million, according to documents obtained by The Associated Press through the Freedom of Information Act. One former tribal employee says department leaders were encouraged to offset dwindling resources by seeking more federal grants.

The Pequots, who once distributed stipends exceeding $100,000 annually to adult members, are not alone among gaming tribes seeking more federal aid. Several, including the owner of Foxwoods' rival Connecticut casino, the Mohegan Sun, say they have been pursuing more grants — a trend that critics find galling because the law that gave rise to Indian casinos was intended to help tribes become financially self-sufficient.

"The whole purpose of the 1988 law which authorized Indian casinos was to help federally-recognized tribes raise money to run their governments by building casinos on their reservations," said Robert Steele, a former Congressman from Connecticut. "I would argue strongly that federal money was meant for struggling tribes. Certainly the Mashantucket Pequots and the Mohegans couldn't under any circumstances be put in that category."

As long as they have federal recognition, casino-owning tribes are eligible for the same grant programs as the larger tribes based on large, poverty-stricken reservations in the American West. The grants, which don't need to be paid back, support tribal governments by paying for programs such as health screenings, road maintenance and environmental preservation.

"The Mashantucket Pequot Tribal Nation is proud of the work they do with the use of federal funds when it comes to assisting the region and fellow Native Americans," said Bill Satti, a tribal spokesman, who said the grants have supported the tribe's medical clinic and repair work on local roadways.

Thomas Weissmuller, who was chief judge of the Mashantucket Pequot Tribal Court until 2011, said that near the end of his tenure the tribal council said they had distributed too much money to members and urged department leaders to pursue more federal grants. He said there was resistance from some council members, who raised questions about the effects on sovereignty, but he was personally encouraged to pursue grants by officials including the tribal chairman, Rodney Butler.

Weissmuller said he was not comfortable seeking such assistance for the tribal court system because most of the issues it dealt with were related to the casino, which is essentially a commercial enterprise.

"A billion-dollar gaming enterprise should fully fund the tribal government," said Weissmuller, who said that he was forced out of the job by tribal officials who told him he did not appear to have the tribe's interests at heart on other matters.

The reversal of fortunes for the Pequots began around 2008, when Foxwoods completed a major, costly expansion with the 30-story MGM Grand hotel and casino just as the recession began to show its teeth. The following year the tribe defaulted on debt exceeding $2 billion.

Since then, the tribe of some 900 people in rural southeastern Connecticut has ended its member stipends. The Pequots have kept some other benefits in place, covering payments for members pursuing higher education and offering supplemental pay for tribal members taking entry-level jobs at the casino.

The federal grants provided to the Pequots through the Interior Department and its Bureau of Indian Affairs, meanwhile, rose from $1 million in 2008 to $2.7 million in 2011, with partial records for 2012 showing $1.7 million in grants for the year. Grants provided to the Pequots through the Indian Health Service, a division of Health and Human Services, increased gradually from $1.7 million in 2008 to $1.9 million in 2012. That money is to support health care services such as community health, nutrition, substance abuse treatment and pharmacy services.

The federal money opened the door to scrutiny by the FBI, whose investigation of tribal finances led to the January indictments of the tribe's treasurer, Steven Thomas, and his brother Michael Thomas, a former tribal chairman. The two are accused of stealing a combined $800,000 in tribal money and federal grants. The tribal council has expressed full confidence in its treasurer.

Mohegan Tribe officials said they took pride in refusing federal grants for years, in acknowledgment that there were needier tribes. But tribal officials said they had relaxed that position as their Mohegan Sun casino, like Foxwoods, has faced growing gambling competition from neighboring states.

"It's a sign of the times. Everybody is" seeking grants, Mohegan Chairman Bruce "Two Dogs" Bozsum said. "There's some that we qualify for and it helps us to keep everybody healthy and working. At the end of the day, why shouldn't we apply for it? If we get approved, it's always for a good cause, usually health or jobs created."

Tribal officials said they receive modest grants to contribute to the cost of health care for their 2,000 members.

The tribe that owns the Soaring Eagle Casino and Resort in Michigan, one of the country's largest Indian casinos outside of Connecticut, has been aggressively pursuing grants in areas including environmental protection and health services as it struggles with the weak economy, according to Sylvia Murray, grants and contracts manager for the Saginaw Chippewa Indian Tribe.

Sam Deloria, director of the American Indian Graduate Center in Albuquerque, N.M., said he has no issue with tribes pursuing grants for which they are eligible. It's no different, he said, from the state of Alaska participating in federal programs despite the annual payouts to residents from the state's oil savings account.

As the federal money reflects financial distress for gaming tribes, however, he does worry that their struggles ultimately could have a ripple effect throughout Indian Country and affect the ability of tribes to participate in the marketplace.

"It has got to raise a set of issues that either in the courts, or in the Congress, or in the marketplace, eventually it will get people looking at tribal participation in business in a different light," he said.


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PepsiCo CEO's pay down amid compensation change

NEW YORK — PepsiCo gave CEO Indra Nooyi a pay package worth $12.6 million last year, which is down 11 percent from the previous year, as the soda-and-snack food giant changed the way it awards long-term incentive compensation.

The Purchase, N.Y.-based company did away with outright option awards last year and instead gave Nooyi a long-term incentive award tied to the performance of the company's future stock price and other metrics. That figure is not included in the pay summary filed with the Securities and Exchange Commission.

For the year, Nooyi's base salary was roughly even with from the previous year at $1.6 million. Her annual incentive pay rose 32 percent to $3.3 million, as PepsiCo said it met its financial goals during a year of restructuring.

Nooyi's stock awards rose 20 percent to $7.5 million. All other pay came to more than $149,000 and covered costs for use of a company plane and contributions to retirement plans.

In the filing with the SEC, PepsiCo noted that Nooyi's total direct compensation rose 5 percent for the year as a result of her annual performance pay.

Nooyi, 57, has been CEO since 2006. Last year, she announced a reset for the company after losing market share to Coca-Cola Co. and coming under pressure from investors to improve performance. The reset included job cuts, as well as stepped up investment in the company's flagship brands.

That push so far has included a multiyear sponsorship of the Super Bowl halftime show and with pop star Beyonce.

For 2012, the company's net income fell to $6.18 billion, or $3.92 per share. That's down from $6.44 billion, or $4.03 per share, in the previous year. Not including one-time charges, PepsiCo said it earned $4.10 per share.

Meanwhile, bigger changes could be in store for the company. PepsiCo is reviewing a restructuring of its North American beverage unit and recently said it will provide more thoughts on the matter early next year.

On Friday, a news report said that activist investor Nelson Peltz had taken a stake in PepsiCo and Mondelez International Inc., which makes Oreo cookies and other global snack brands, with the possibility that he could push for the two companies to merge.

PepsiCo Inc. issued a short statement saying it didn't comment on market rumors or speculation and that it didn't see a need for any large deals. Mondelez said it was happy with its current portfolio of products.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.


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Maine co. makes wooden Easter eggs for White House

BUCKFIELD, Maine — Sen. Susan Collins is planning a visit to the Maine company that supplies wooden keepsake Easter eggs that are featured at the annual White House Easter Egg Roll.

Wells Wood Turning & Finishing Inc., a wood products company in the central Maine town of Buckfield, is manufacturing the eggs for the seventh straight year.

The eggs will be included in gift bags that are given to children at the April 1 Easter Egg Roll on the White House lawn. The National Park Service also sells the eggs as collectibles for $7.99 each or a five-pack that includes one egg of each color plus a special edition egg.

Collins says she'll meet with employees when she visits the company on Monday.


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NYC slowly moves away from sooty fuel oil

NEW YORK — Few sights capture New York's beauty like the grand old apartment buildings that ring Central Park.

But for decades, they've also been a source of urban grit.

Like other buildings throughout the city, many of the graceful towers around the park have long burned the dirtiest heating fuel around: a nasty sludge called No. 6 oil that puts more soot into the air than all the city's automobiles.

But that has begun to change as a result of regulations put in place in 2011.

Since then, at least 1,500 city buildings have switched to cleaner fuels.

Changes are under way at many more, including Central Park palaces like The Dakota and The San Remo, which are switching to natural gas.

Environmentalists say the conversions will save lives.


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Police: No sign of 3rd party in Berezovsky death

LONDON — British police said Sunday they have no evidence to suggest third-party involvement in the death of Boris Berezovsky, the self-exiled Russian tycoon who went from Kremlin kingmaker to fiery critic.

With an investigation underway, police are treating the death of Berezovsky — who fled to Britain in the early 2000s after a bitter falling out with Russian President Vladimir Putin — as unexplained. But the former oligarch survived assassination attempts and recently faced financial difficulties, prompting speculation as to whether his death was part of a conspiracy — or suicide.

Police said Sunday it would be wrong to speculate on how Berezovsky died pending the results of an autopsy but that they had no reason to suspect

"We are at the early stages of the investigation and we are retaining an open mind as we progress," said Detective Chief Inspector Kevin Brown. "The investigation team is building a picture of the last days of Mr. Berezovsky's life, speaking to close friends and family to gain a better understanding of his state of mind."

Police released some details on the circumstances that triggered their investigation into his demise and a subsequent check for hazardous materials at the property in Ascot, a town 40 kilometers (25 miles) west of London where Berezovsky's body was found on Saturday.

A call came into police from the local ambulance service at 3:23 p.m. GMT (11:23 a.m. EDT) Saturday saying a man had been found dead, Thames Valley Police said in a statement on Sunday.

The police said an employee of Berezovsky told how he had called an ambulance after becoming concerned for Berezovsky's welfare and forced open a bathroom door locked from the inside to find the tycoon's body on the floor.

The employee was the only person in the house when Berezovsky's body was discovered, police said. Members of the ex-oligarch's family arrived at the home while the paramedic was on scene.

Police explained that after a paramedic declared Berezovsky dead and left the scene, a device measuring his exposure to radiation was triggered, which is why chemical and radiations experts were called to examine the property.

"Officers found nothing of concern in the property and we are now progressing the investigation as normal," a statement from police said earlier, adding that the majority of the cordon put in place around the property has now been lifted.

Berezovsky — who had survived a number of assassination attempts — amassed a fortune through oil and automobiles during Russia's chaotic privatization of state assets following the collapse of the Soviet Union in the early 1990s.

Once a member of Russian President Boris Yeltsin's inner circle, Berezovsky fell out with Yeltsin's successor, Putin, and fled Britain in the early 2000s to escape fraud charges that he said were politically motivated.

He became a strident and frequent critic of Putin, accusing the leader of ushering in a dictatorship, and accused the security services of organizing the 1999 apartment house bombings in Moscow and two other Russian cities that became a pretext for Russian troops to sweep into Chechnya for the second war there in half a decade.

Putin's spokesman acknowledged Sunday that the Russian president considered Berezovsky an enemy with clearly stated intentions to fight.

"We know for certain that he spared no expense in support of processes, within Russia and beyond, that could be said to have been directed against Russia and Putin," spokesman Dmitry Peskov said on the independent cable television channel Rain. "He definitely was Putin's opponent, and unfortunately not only his political opponent, but most likely in other dimensions as well."

In recent years, Berezovsky fended off legal attacks that often bore political undertones — and others that bit into his fortune.

Russia repeatedly sought to extradite on Berezovksy on a wide variety of criminal charges, and the tycoon vehemently rejected allegations over the years that he was linked to several deaths, including that of slain journalist Anna Politkovskaya and ex-KGB agent Alexander Litvinenko.

Berezovsky won a libel case in 2010 against a Kremlin-owned broadcaster that aired a show in which it was suggested he was behind the poisoning of Litvinenko, who had fled Russia with Berezovsky's help after accusing officials there of plotting to assassinate political opponents.

He took a hit with his divorce from Galina Besharova in 2010, paying what was at the time Britain's largest divorce settlement. The figure beat a previous record of 48 million pounds ($73.1 million) and was estimated as high as 100 million pounds, though the exact figure was never confirmed.

Last year, Berezovsky lost a multibillion-pound High Court case against fellow Russian Roman Abramovich and was ordered to pay 35 million pounds ($53.3 million) in legal costs.

Berezovsky had claimed that Abramovich, the billionaire owner of Chelsea Football Club, cheated him out of his stakes in the oil group Sibneft, arguing that he blackmailed him into selling the stakes vastly beneath their true worth after he lost Putin's good graces.

But a judge threw out the case in August, ruling that Berezovsky was a dishonest and unreliable witness, and rejected Berezovsky's claims that he was threatened by Putin and Alexander Voloshin, a Putin ally, to coerce him to sell his Sibneft stake.

It also recently emerged that Berezovsky ran up legal bills totaling more than 250,000 pounds in just two months of a case against his former partner, Elena Gorbunova, with whom he had two children and who claimed the businessman owed her millions.

Earlier this week, The Times of London newspaper reported that Berezovsky was selling property — including an Andy Warhol portrait of the former Soviet Union leader Vladimir Lenin — to settle his debts and pay expenses owed to lawyers.

News of Berezovsky's death has prompted conspiracy theories along with speculation as to his state of mind, given his recent financial setbacks.

Ilya Zhegulev, a journalist with the Russian edition of Forbes magazine, said he spoke with Berezovsky the day before he died and discussed the tycoon's decision to flee Russia in 2000.

The journalist quoted Berezovsky as saying that during his years in London he had lost the meaning of life.

"I no longer want to be involved in politics," Zhegulev quoted Berezovsky as saying in a story published Saturday on the Forbes.ru website.

He said Berezovsky told him that he wanted nothing more than to return to Russia. The former oligarch said he had changed his views on Russia, saying he now understood that it should not look to Europe as a model.

"I had absolutely, idealistically imagined that it was possible to build a democratic Russia. And idealistically imagined what democracy was in the center of Europe. I underestimated the inertia of Russia and greatly overestimated the West. This took place gradually. I changed my understanding of Russia's path," he quoted Berezovsky as having said.

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AP writer Lynn Berry in Moscow contributed to this report. Cassandra Vinograd can be reached at http://twitter.com/CassVinograd


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GOP's 'no' on Medicaid becomes "Let's make a deal'

JEFFERSON CITY, Mo. — Given the choice of whether to expand Medicaid under President Barack Obama's health care law, many Republican governors and lawmakers initially responded with an emphatic "no."

Now they are increasingly hedging their objections.

A new "no, but ..." approach is spreading among GOP states in which officials are still publicly condemning the Democratic president's Medicaid expansion yet floating alternatives that could provide health coverage to millions of low-income adults while potentially tapping into billions of federal dollars that are to start flowing in 2014.

The Medicaid health care program for poor, which is jointly funded by the federal and state governments, already covers about one in five people in the U.S. Expanding it was the way Obama envisioned covering many more low-income workers who don't have insurance. The new Republican alternatives being proposed in states generally would go part of the way, but cover fewer people than Obama's plan, guarantee less financial help or rely more on private insurers.

But so far, many of the Republican ideas are still more wistful than substantive. It's uncertain whether they will actually pass. And even if they do, there's no guarantee Obama's administration will allow states to deviate too greatly from the parameters of the Affordable Care Act while still reaping its lucrative funding. Yet a recent signal from federal officials that Arkansas might be able to use Medicaid money to buy private insurance policies has encouraged Republicans to try alternatives.

The GOP proposals could lead to another health care showdown between the White House and states, leaving millions of Americans who lack insurance waiting longer for resolution. Officials in about 30 states that are home to more than 25 million uninsured residents remain either defiant or undecided about implementing Obama's Medicaid expansion, according to an Associated Press survey.

Supporters of the Medicaid expansion have built coalitions of hospitals, businesses groups, religious leaders and advocates for the poor to try to persuade reluctant Republicans of the economic and moral merits of Obama's health care plan. But some Republicans believe the pressure ultimately will fall on Obama to accept their alternatives if he wants to avoid a patchwork system for his signature accomplishment.

"If the Obama administration is serious about innovative ways to bring down the cost of health care, it's going to cooperate with conservative ideas rather than continue down its one-size-fits-all, far-left-wing ideological path," said Missouri Rep. Jay Barnes, a Republican from Jefferson City.

A House committee led by Barnes already has defeated Obama's version of Medicaid expansion. It is to hear public testimony Monday on his "market-based Medicaid" alternative that would award health care contracts to competing private insurers and provide cash incentives to patients who hold down their health-care costs. His proposal would contain costs by covering fewer children than Medicaid now does and adding fewer adults than Obama's plan envisions.

Committees in Florida's Republican-led Legislature also have rejected a Medicaid expansion for roughly 1 million of the state's poorest residents, even though it is backed by GOP Gov. Rick Scott. Now Republican Sen. Joe Negron is pursuing an alternative that would use federal funds to provide vouchers for low-income residents to buy private policies. Negron said he still doesn't believe expanding Medicaid is the right decision, but he wants to help Florida residents get health coverage.

"We don't want to do it the Washington way. We want to do it the Florida way," Negron said.

Republican Ohio Gov. John Kasich also has been in discussions with the Obama administration about providing subsidized insurance instead of full Medicaid coverage for more adults. Republican governors in Texas, Nebraska and Indiana want the federal government to award Medicaid money as block grants to states.

"It's a two-step for many of these Republican governors. When they look at the numbers they want to do it, but they want to distance themselves from Obamacare at the same time," said Drew Altman, president of the Kaiser Family Foundation, a nonprofit that analyzes health care policies.

That might be fine with the Obama administration.

"There actually is quite a bit of flexibility on how they can approach this, and the federal government has indicated they want to get to 'yes' " said Joan Alker, co-executive director of Georgetown University's Center for Children and Families in Washington, D.C.

As originally enacted, the Affordable Care Act required states to expand Medicaid to adults earning up to 138 percent of the federal poverty level, about $32,500 annually for a family of four. A Supreme Court decision last summer made the expansion optional for states but kept in place a powerful financial incentive. The federal government will fully fund the expansion for the first three years, with the states' share gradually increasing to 10 percent by 2020.

Health and Human Services Secretary Kathleen Sebelius said in December that getting full funding will still require a full expansion. Yet some Republicans in Missouri, South Dakota and elsewhere claim to see room for compromise.

LaTonya Jenkins, a 51-year-old laid off teacher's aide who lives in temporary housing for the homeless in Kansas City, recently enrolled in Medicaid but could lose coverage if her part-time job pushes her income over Missouri's strict eligibility limits. She recently traveled to Missouri Capitol to urge lawmakers to expand Medicaid.

"If they don't, and they cut it out, then what are we to do? We'll be lost," said a tearful Jenkins, who has diabetes and cares for her grandson. "I'll be sicker than ever and back in the hospital."

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Associated Press writer Kelli Kennedy contributed to this report from Miami.

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Follow David A. Lieb at: http://www.twitter.com/DavidALieb


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APNewsBreak: Ex-surgeon general joins e-cig board

RICHMOND, Va. — Former U.S. surgeon general Dr. Richard Carmona, who highlighted the dangers of secondhand smoke and supported a ban on all tobacco products, is joining the board of directors for NJOY Inc., the nation's leading electronic cigarette company — a move that could bring increased legitimacy to e-cigarettes as a viable alternative to traditional cigarettes.

The country's senior public health official under President George W. Bush from 2002 to 2006 will advise the Arizona-based company on public health and regulatory issues. He'll also spearhead its research of the battery-powered devices that heat a liquid nicotine solution and create vapor that users inhale. The private company's flagship NJOY KING product is the top-selling e-cigarette.

The 63-year-old Carmona serves as president of the health and wellness nonprofit Canyon Ranch Institute in Tucson and is a public health professor at the University of Arizona.

In 2006, he published a comprehensive report that concluded that breathing any amount of someone else's tobacco smoke harms nonsmokers and was instrumental in smoking bans around the country. And in testimony to a Congressional committee in 2003, Carmona was critical about the possibility of safer tobacco alternatives to smoking.

"Definitely there's an argument that can be made for harm reduction, but clearly more research needs to be done," Carmona said in an interview with The Associated Press. "I'm probably going to be (the company's) biggest critic. ... I still look at my job as being a doctor of the people and I'm going to look at the science. ... If we can find a viable alternative that gave us harm reduction as people are withdrawing from nicotine, I'm happy to engage in that science and see if we can do that."

There are two approaches to regulating tobacco use: one that says there's no safe way to use tobacco and pushes for people to quit above all else. The other supports lower-risk alternatives like smokeless tobacco and other nicotine delivery systems like gum or even electronic cigarettes as methods to improve overall health.

Devotees insist e-cigarettes address both the addictive and behavioral aspects of smoking. Smokers get their nicotine without the more than 4,000 chemicals found in regular cigarettes. And they get to hold a cigarette, while puffing and exhaling something that looks like smoke. More than 45 million Americans smoke cigarettes, and about half of smokers try to quit each year, according to the Centers for Disease Control and Prevention.

"When he comes on board, it's very hard for anti-tobacco people who see themselves as health campaigners to simply oppose e-cigarettes. They have to deal with the fact that one of the leaders of their community not only is supporting e-cigarettes but is willing to be on the board of directors of the biggest e-cigarette company," said David Sweanor, a Canadian law professor and tobacco expert who consults with companies and others on industry issues.

In an interview with the AP, NJOY's CEO Craig Weiss said the addition to Carmona to its board is a "very powerful step forward" in its mission to "obsolete cigarettes."

The company did not disclose how much Carmona was being compensated for his new role.

The market for e-cigarettes has grown from the thousands of users in 2006 to several million worldwide. Analysts estimate sales could double this year to $1 billion, and consumption of e-cigs could surpass consumption of traditional cigarettes in the next decade. Some companies, including NJOY, have even started running TV commercials.

Some of the nation's largest tobacco companies have moved to grab some of the growing revenue in the e-cigarette market. Reynolds American Inc., the second-biggest U.S. cigarette maker, has begun limited distribution of its first electronic cigarette under the Vuse brand. Lorillard Inc., the nation's third-biggest tobacco company, acquired e-cigarette maker Blu Ecigs last April. Some e-cigarettes are made to look like a cigarette with a tiny light on the tip that glows like the real thing.

E-cigarettes could be more heavily regulated in the near future. A recent CDC study found that one in five current smokers reported having used an e-cigarette, evidence the agency says that more oversight is needed. And the Food and Drug Administration is expected to assert regulatory authority over e-cigarettes later this year to treat them the same as traditional cigarettes and other tobacco products.

"We still have one out of five people in America smoking ... there's a lot more work to do," Carmona said. "To dismiss (e-cigarettes) and not even consider it ... would be a disservice to the public who are looking for alternatives."

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Online:

NJOY: http://www.njoy.com

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum .


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Toenail clippings to measure toxic exposure in NJ

GARFIELD, N.J. — Some residents of a New Jersey town will soon be asked to turn over their toenails.

Scientists need them to measure if people who live in Garfield near a Superfund site have been exposed to hexavalent chromium.

It's a known carcinogen. For the past 30 years it's been in the ground in part of the city.

Researchers from New York University want to measure whether residents have been exposed to dangerous levels of chromium. The scientists say toenails grow slowly and retain chromium.

The metal spilled out of an electroplating factory in 1983 and was never fully cleaned up. A plume of it has now spread three-quarters of a mile from the site and into a neighboring city.


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