By Emmanuel T. Erediano
[email protected]
Variety News Staff
DEPARTMENT of Public Works Secretary Ray N. Yumul on Wednesday warned lawmakers that it would be challenging for the municipal governments of Rota and Tinian to manage their solid waste systems due to limited funding.
The House Ways and Means Committee invited Yumul to comment on Senate Bill 24-32, which proposes transferring the expenditure authority, management and control of the solid waste fund from the Finance secretary to the mayors of Rota and Tinian.
The two sources of the solid waste fund are 7% of excise tax collections and tipping, disposal and user fees collected at the Lower Base transfer station and the Marpi landfill. In the revised fiscal year 2026 budget, $179,691 — representing 7% of excise tax collections — and $640,646 from tipping, disposal and user fees are earmarked for the CNMI solid waste fund.
Authored by Sen. Jude U. Hofschneider, the bill states that the expenditure authority of the solid waste fund should be vested in the mayors of each municipality “in order to expedite the disbursement of funds and procurement of services and equipment.” The bill also states that the mayors have firsthand knowledge of the solid waste needs and requirements of their municipalities and should prioritize the sub-account funding for those purposes.
House Ways and Means Chairman John Paul Sablan invited Yumul to appear before the committee to answer questions about the measure.
Yumul told the committee there are several issues lawmakers need to consider before moving forward with the bill.
He said solid waste management is costly, noting that operating the Marpi landfill alone costs the Department of Public Works about $1.4 million.
Yumul also noted that of the 7% of excise tax collections allocated to the solid waste fund, only 10% goes to the sub-accounts for Rota and Tinian. He said the two municipalities currently do not collect tipping fees.
Although there have been indications that the municipalities intend to begin collecting such fees, Yumul said there has been little progress.
He said that more than two years ago he sent a letter directing officials on Rota and Tinian to begin collecting tipping fees, but “there’s been no action.”
Yumul said he has no issue with transferring expenditure authority for the solid waste fund. The bigger question, he said, is how the municipalities will pay for landfill operations once facilities on Tinian and Rota become operational.
“The cost of operation is not going to be just in the tens of thousands of dollars,” he said. “It’s going to be way more than that.”
Yumul added that landfill operations must comply with regulations of the U.S. Environmental Protection Agency and the CNMI Bureau of Environmental and Coastal Quality.
Federal law also requires a financial assurance mechanism, meaning funds must be available in case a landfill needs to be closed, he said. Landfill closure must also comply with EPA regulations, which he said “is not cheap.”
Yumul warned that if S.B. 24-32 becomes law, “this legislative body is going to have a problem.”
He explained that of the more than $600,000 in solid waste funds derived from tipping fees, allocating about 20% and splitting it between Tinian and Rota would leave each island with roughly $60,000.
“So basically, we are looking at over $60,000 per island,” Yumul said. “If this body moves forward with this bill, just know that in the foreseeable future there’s going to be issues.”
Absent tipping fees, he added, there is effectively no funding source for solid waste management on Rota and Tinian.
He also noted that under the current fiscal year 2026 budget, solid waste management employees on Rota and Tinian are paid from the general fund.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
