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Fitial rescinds Babauta’s ‘poison pill’
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Posted on Feb 09 2006
Gov. Benigno R. Fitial rescinded former governor Juan N. Babauta’s request for the Environmental Protection Agency to commence a federal enforcement action against the Commonwealth Utilities Corp. for violations of CNMI and federal drinking water regulations.
On Dec. 22, 2005, less than a week after stepping down as the chief executive of CUC, Babauta granted EPA full authority “to take all steps and to impose any requirements that EPA believes necessary to require CUC to comply with the SDWA [Safe Drinking Water Act].” Babauta effectively became the utility agency’s chief executive after he declared a state of emergency in May 2005, suspending the CUC board and placing the agency under the Executive Branch.
According to the assessment regularly given by Washington Rep. Pete A. Tenorio, full compliance with the SDWA could cost the CNMI $30 million.
When asked about the former governor’s actions, Fitial said: “In business they call it a ‘poison pill’ when someone puts unnecessary liabilities on their own company to thwart an unwanted acquisition. Juan Babauta delivered CUC a poison pill.”
DEQ was given full federal delegation of the administration and enforcement of the SDWA in 1982, and is therefore the primary enforcement agency for safe drinking water violations in the CNMI. As the primary enforcement agency, it is DEQ’s responsibility to ensure that CUC complies with all SDWA requirements.
DEQ issued an administrative order against CUC in June 2003, requiring compliance with CNMI and federal safe drinking water regulations. CUC has been unable to fully comply with portions of DEQ’s administrative order.
Since DEQ is the primary enforcement agency, EPA must be given authorization from the CNMI to bring federal enforcement actions against CUC for drinking water violations. (PR)
