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Deadline looms for upgrade of Agingan treatment plant
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Posted on Feb 04 2005
The Commonwealth Utilities Corp. will face daily fines of $37,500 if it fails to find funding for the Agingan Wastewater Treatment Plant before Feb. 28.
In this light, CUC called yesterday for immediate action on a House bill that would reprogram $3.3 million from the Kagman wastewater treatment plant project to the construction of the Agingan ocean outfall and upgrade of the Agingan sewer treatment plant.
CUC executive director Lorraine Babauta said the utility firm needs House Bill 14-286 signed into law before Feb. 28, the deadline set for CUC to comply with the U.S. Environmental Protection Agency’s administrative order.
“There are no more extensions to find matches to money for a wastewater project, while only an open drain to massive fines remains, at $37,500 each day—unless and until a legislative bill, like House Bill 14-286, is passed and signed into law,” Babauta said. EPA issued an administrative order against CUC in 1999 for its inability to match funds for a $1.2 million grant from the environmental agency for Agingan’s plant repairs, and for its failure to construct an ocean outfall and improve the quality of water effluent being discharged into the ocean.
“CUC obtained extensions from the EPA, but now time is up,” Babauta said.
CUC has been planning the upgrade of the wastewater treatment plant for some time.
In 2002, the utility firm solicited bids for the construction of the outfall. However, all of the three bidders entered prices far above the grant and estimated budgets.
Babauta said CUC still needs $3.6 million for the project.
“We praise the House members for understanding the environmental protection aspects of this project, especially the fact that the entire Legislature works together to recognize the current economic situation preventing CUC from obtaining typical loans based on credit scores of CUC, and the millions of dollars owed by the central government in utility bills,” Babauta said.
“We hope for swift action. As CUC acts to help the community, we too look for urgent help no later than Feb. 28th,” she added.
CUC has also tried obtaining a $1.56 million loan from the Commonwealth Development Authority for the project.
