CUC’s Guerrero: What fabrication?

The Commonwealth Utilities Corp. yesterday clarified allegations that it fabricated the U.S. Environmental Protection Agency’s ultimatum to impose a daily fine over the Agingan wastewater treatment facility project, even as the Legislature had already approved funding the project on Tuesday.

“Our utility has been given a deadline—Feb. 28, 2005—to complete the design and—in theory—the plans for funding and construction of the pipeline if CUC could obtain $3.3 million to match EPA grant funds [amounting] $2.1 million,” said CUC chair Francisco Q. Guerrero.

He also said the deadline—which the Attorney General’s Office had claimed was never issued by EPA—was given in a Sept. 24, 2004 message faxed by EPA environmental engineer Michael Lee to the utility firm.

Guerrero quoted from the fax, “CUC needs to take whatever steps necessary to secure adequate funding for construction of the ocean outfall to ensure compliance as soon as possible. Failure to do so may result in EPA elevating this matter, which would result in penalties of up to $32,500 per day per violation.”

He maintained that the correspondence was first faxed by EPA to CUC without Lee’s signature, apparently causing “mistaken feelings at the Legislature.” But he added that a signed copy of the message was subsequently sent by mail and reproductions were provided to all concerned offices.

Guerrero further said that Lee during a teleconference between EPA and CUC last Tuesday reiterated his tone from the Sept. 24, 2004 fax. “[He noted] that the Agingan project is stalled for five years,” he said.

EPA issued an administrative order against CUC in 1999 for its inability to match funds for a 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, in support of its claim that there is an urgent need for funding for the project, disclosed that it would face a $32,500 fine per day if it fails to secure the necessary funds by Feb. 28.

Quoting EPA’s Lee, assistant attorney general Sean Lynch told the governor in a Feb. 9, 2005 memorandum that the “U.S. EPA has not indicated one way or the other our intention should CUC fail to secure funding.”

On Tuesday, the Senate approved House Bill 14-286, which would reprogram $3.3 million from the Kagman sewer plant project for the construction and repair of the Agingan wastewater treatment facility and ocean outfall.

The bill will be enacted when Gov. Juan N. Babauta signs it.