HomeMy WebLinkAboutREP FC 301 07/22/2008 2006-2008
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
Comm. No. 1334
Resolution No. 702-08
Page -2-
underground fire that has continued since the early 1990's and the project will demonstrate that
foam injected will displace the oxygen and reduce the temperature, thereby reducing the
conditions that a fire needs to exist.
Pursuant to Section 46-7, Hawaii Revised Statutes, County Departments must obtain the consent
of the Council to enter into agreements with the federal or state governments respecting action to
be taken pursuant to any of the powers granted by law to furnish, expend and receive any funds
or other assistance in connection with projects being or to be undertaken pursuant to those
powers.
I
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 702-08,
and recommends its adoption.
i
la
I
i
I
i
I
I
AYES NOES A&E EX Respectfully submitted,
FORD X
HIGA X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X
PILAGO X DOMINIC YAGO %1A
YAGONG X FC REP 301
YOSHIMOTO X ADOPTED: AUG 1 3 7008