CUC, EPA talk stipulated orders, permits

Commonwealth Utilities Corp. executive director Antonio Muña met with officials from the Environmental Protection Agency last week to discuss the stipulated orders recently filed in the U.S. District Court for the NMI to compel the utility company to adhere to federal regulations governing water, sewer, power and fuel.

The lack of environmental permits for the Aggreko generators also was discussed, Muña said.

He said the meeting went well, with EPA sharing their expectations for the implementation of the stipulated orders.

“They communicated their expectation. We recognize that,” he said. “We will ensure what we need to do to comply will be done.”

In November, the U.S. Department of Justice and the EPA filed a civil suit against CUC, claiming the utility agency has committed violations against the Clean Water Act and Safe Drinking Water Act. The suit was accompanied by two stipulated orders, which means that the CNMI government agreed to the terms and conditions being required of it by the EPA. The stipulated orders need to be signed by the court.

Gov. Benigno Fitial and Muña signed off on the stipulated orders in July. The stipulations require CUC to reorganize its managerial and operational staff; hire engineers and other environmental professionals; submit financial plans; and undertake a number of interim construction projects.

“This platform, as far as EPA [is concerned], I think they’re going to be happy with the platform they’re going to see right now,” Muña said after Friday’s Public Utilities Commission hearing.

The EPA officials also discussed with Muña the lack of permits for the Aggreko generators, which Muña said is still a work in progress.

“They do recognize the emergency need for these engines,” Muña said. “I think what they want to see is to ensure that it is [of] a temporary nature and does not become a permanent facility,” adding that the federal agency wants to see progress on the rehabilitation of the engines at Power Plant 1 in order for the eventual discontinuation of Aggreko engines.

“That’s going to be critical to be able to continue and be considered an exception to the rule,” Muña added.

A recent report prepared by the Georgetown Consulting Group stated that, besides the power plant managed by Telesource on Tinian, CUC does not have any operating permits for its generating plants.

Fitial, under his declaration of a state of emergency for CUC, has suspended regulatory statutes and regulations for the Aggreko generators. He has directed CUC within 30 days to provide him in writing their plan for compliance or an explanation as to why compliance has not been met.