Inos OK’s bill giving $5M from MPLT for CUC stipulated orders

Gov. Eloy S. Inos signed into law Tuesday a bill appropriating future Marianas Public Land Trust interest distributions to meet the CNMI’s obligations under a settlement agreement it signed with the U.S. Environmental Protection Agency.

It comes less than 24 hours after the Senate on Monday approved HB 18-216, HS1 on first and final reading by a unanimous vote of 8-0, with Sen. Paul A. Manglona (Ind-Rota) absent.

HB 18-216, HS1, which now becomes Public Law 18-71, instructs the Department of Public Lands to “immediately transfer” at least $5 million to MPLT.

MPLT will then loan $5 million to the CNMI government at an interest rate of not less than 7 percent per annum to be used to satisfy the Commonwealth’s obligation under its settlement agreement with EPA.

During the Senate session Monday, CUC executive director Alan Fletcher and legal counsel James Sirok said that in general they are supportive of the bill, save for a provision crediting the $5 million used to satisfy the government’s agreement with EPA to settle outstanding arrears of the Public School System and the Commonwealth Healthcare Corp.

The provision the CUC officials are alluding to is section 2 (d) of the PL 18-71, which reads, “Upon notification from the Secretary of Finance that the $5,000,000 has been deposited with the Court Registry, CUC shall credit $1,738,940 for Public School System’s past due utility bills and $3,261,060 for Commonwealth Healthcare Corporation’s past due utility bills. The $1,738,940 credit for Public School System shall satisfy the Commonwealth’s outstanding obligation under the Maintenance of Effort Assurance.”

Fletcher said it doesn’t consider the $5 million as payment for the outstanding debt of PSS and CHCC since the “money goes directly to the court.” He said the utility company cannot simply “write off” some of the government’s debt just because it deposits $5 million that will be used for CUC projects.

Under its settlement agreement with EPA, the local government is required to deposit over $22.8 million until 2018 to complete some stalled Commonwealth Utilities Corp. projects.

Aside from the $5 million it must deposit by Dec. 31, 2014, into the U.S. District Court for the NMI’s court registry, other court-mandated payments to settle the CNMI government’s agreement with EPA are as follows:

• $2,800,000 no later than Feb. 1, 2015;
• $5 million no later than Feb. 1, 2016;
• $5 million no later than Feb. 1, 2017; and
• $5 million no later than Feb. 1, 2018.

HB 18-216, HS1 passed the House of Representatives last Dec. 18.