A punitive assessment for the emotional damage from deaths and destruction of personal property on a grand scale, including the environment the damaged parties live in, is entirely appropriate.
Levying it under that pretense, but putting it in a discretionary fund under purview of government is essentially a 100% tax on the damages done to the victims.
Claiming it will be used to benefit those victims is a whitewash... It never goes to the victims unless it's awarded to them.
There's absolutely nothing wrong with the punitive assessment, my objection is purely to the recipient.