THE Commonwealth Utilities Corp. is operating with vacancies in five of the required eight management positions, U.S. Department of Justice attorney Elizabeth L. Loeb said in a status report submitted to the federal court.
“The Chief Engineer position, a critical position for the utility, has been vacant since February 24, 2020. The Wastewater Treatment Plant Supervisor position has been vacant since January 13, 2019. The Technical Manager for Oil [or TMO] position has been vacant since December 7, 2020,” she said.
A TMO is critical for the management and implementation of Stipulated Order 2 oil projects and ongoing operations and maintenance, she added.
“While a new TMO was hired in July 2021, this individual resigned after one day,” Loeb said.
A new deputy executive director replaced the outgoing DED in September 2021 but resigned after less than three months at CUC and the position is currently vacant, Loeb added.
She said it continues to be critical that CUC retain persons who meet the SO1 qualifications and fill all vacancies in a timely manner.
Still, she added, under the federal court’s guidance, “multiple major projects to improve CUC’s infrastructure have been completed.”
These projects include the construction of the CUC Pipeline and Tank 102; major repairs to Tank 103; replacement of horizontal tanks and associated piping at Power Plant 4; improved facility drainage at CUC’s power plants; improved facility waste management at CUC’s power plants; and the repair and construction of secondary containment at the power plants to minimize the likelihood of future oil spills, Loeb said.
She noted that the appointment of the Engineering and Environmental Management Company or EEMC ends on February 11, but the federal government “anticipates that by this date all EEMC work will be complete.”
SOs
In Nov. 2008, after the U.S. Environmental Protection Agency cited CUC for violating the Clean Water Act and the Safe Drinking Water Act, the federal court issued Stipulated Orders 1 and 2.
SO1 focuses on drinking water issues while SO2 focuses on oil issues such as requiring CUC to repair and replace oil storage and operation infrastructure, manage tank and pipeline facilities, and require spill and emergency response equipment and protocols.
On September 26, 2014, the federal court entered an EEMC order resolving the U.S. government’s motion brought against CUC and the CNMI seeking a receiver and other relief.
The EEMC order resulted in the appointment of Gilbane Federal to assist with CUC’s oil-related projects.
Status conference
Designated federal Judge Dave O. Carter will conduct a CUC status report hearing in Feb. 2022.
Loeb has requested that the upcoming status conference focus on CUC compliance with SO1 and portions of SO2 that are completed.
Loeb also pointed out that much of CUC’s progress is due to the funding and technical support provided by the federal government.
Since the orders were entered, CUC will have been awarded approximately $110 million in EPA grant funding for CUC’s SO1 drinking water and wastewater systems, she said.
She added that pursuant to the EEMC order and through $17.8 million in U.S. Department of the Interior grants, and $5 million in CNMI payment, the Commonwealth contributed $22.8 million toward CUC’s SO2 projects.
“The United States understands that CUC has or will soon have access to federal monies from the Infrastructure Investment and Jobs Act and COVID relief funds that can be used to fund many of the measures required to comply with SO1 and SO2,” Loeb said.
Master plan
As for CUC’s master plan, Loeb said it identifies CUC’s infrastructure needs over a 20-year period and was completed by CUC using over $2 million in EPA funding.
She said the master plan establishes construction priorities, evaluates critical infrastructure, and plans for short and long-term capital improvements.
“Notwithstanding the effort and funding put toward this project, CUC will not commit to implementing the Master Plan and maintains that Master Plan compliance is dependent upon federal government funding,” Loeb added.
As for CUC’s financial management, she said SO1 “requires an Interim Financial Plan and a Final Financial Plan that will generate sufficient revenue to cover operations, compliance activities, and measures necessary to ensure compliance with the Clean Water Act and the Safe Drinking Water Act.”
CUC submitted an Interim Financial Plan that was conditionally approved on March 5, 2021 by EPA, Loeb said.
But she added that CUC “has not provided a schedule of how to implement user fees, taxes, assessments, or other sources of revenue to guarantee that CUC can meet the projected costs as set forth in the budget.”
Loeb said “EPA’s priority is that CUC must be able to adequately maintain and operate the significant investment in capital improvement projects that EPA and other federal agencies have funded.”
