REP FC 301 07/22/2008 2006-2008 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: July 22, 2008 Re: Comm. No. 1334/Res. No. 702-08 PLACE: Sheraton Keauhou Bay Resort & Hotel 78-128 `Ehukai Street Kailua-Kona, Hawaii TIME: 12:10 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 702-08, reports as follows: Resolution No. 702-08, transmitted jointly with Bill No. 328 by Director of Finance William Takaba, via Communication No. 1334, dated July 9, 2008, authorizes the Office of the Mayor to (1) enter into a consent agreement and final order (CAFO) with the United States Environmental Protection Agency to settle violations of the Federal Clean Air Act relating to annual gas emissions reports and controls for the West Hawaii Landfill, and (2) enter into a funding agreement with Waste Management of Hawaii, Inc., for receipt of funds and for County responsibility for completion of a supplemental environmental project at the closed Kailua-Kona landfill in satisfaction of the CAFO. The County of Hawaii contracted Waste Management of Hawaii, Inc. (WMH) to construct and manage the West Hawaii Landfill, and under that contract, WMH was responsible for compliance with all environmental laws in its management of the landfill, and to indemnify the County against fines or penalties that might arise from violation of such laws. Under the Clean Air Act, including 42 U.S.C. sections 7401-7617q, WMH was required to calculate the landfill's non-methane organic compounds (NMOC) emissions potential and report this to the Environmental Protection Agency (EPA) annually. r For the years 2001, 2002, 2003, 2004, and 2005, WMH failed to comply with the Clean Air Act requirements to timely submit Annual Emission Rate Reports with the EPA for the West Hawaii Landfill. WMH also failed to comply with Clean Air Act requirements, based on the NMOC emissions potential for 2002, to submit to EPA a gas collection and control plan within one year, and install a gas collection and control system (GCCS) within 30-months, or in the alternative to provide a revised report within 180 days, based on Tier 2 NMOC sampling and analysis that shows emission rates below the threshold requirement for a GCCS. In lieu of the EPA's demand for a civil penalty of $135,000, the EPA is willing to settle the foregoing violations for a civil penalty of $33,500, with the remaining of $101,500 to be used by the County and WMH to complete a Supplemental Environmental Project costing at least $184,400, intended to provide significant environmental or public health protection and improvements at the Old closed Kailua-Kona landfill. The funds will be used to combat the