ASSISTANT U.S. Attorney Eric O’Malley, in a status report filed in federal court on Friday, stated that the Commonwealth Utilities Corporation was awarded $42.5 million for fiscal year 2025.
“This included funding from the Bipartisan Infrastructure Law, which allocated $21 million per year over five years for water and wastewater infrastructure improvement projects in the CNMI,” O’Malley said.
He said the funding also entails two congressional earmark grants of approximately $1 million each — one to rehabilitate the collapsed tank at the Sadog Tasi wastewater treatment plant and the other to replace granular activated carbon material in the drinking water treatment units.
However, he said, CUC has not finalized a plan to ensure its independent financial sustainability, a requirement of Stipulated Order 1.
“Specifically, it has not implemented measures to ensure that its revenues are sufficient to cover everyday operating and maintenance expenses — let alone future capital improvements,” O’Malley added.
In November 2008, after the Environmental Protection Agency cited CUC for violating the Clean Water Act and the Safe Drinking Water Act, the federal court issued Stipulated Orders 1 and 2.
SO1 focuses on CUC’s management structure, drinking water, and wastewater issues, while SO2 pertains to oil-related issues.
In his status report, O’Malley noted that much of the public utility’s progress has been due to funding and technical support provided by the federal government.
“Since SO1 and SO2 were entered, CUC will have been awarded approximately $200 million in U.S. Environmental Protection Agency grant funding for its SO1 drinking water and wastewater systems,” he said.
Regarding oil management activities, O’Malley added that the CNMI — pursuant to the Engineering and Environmental Management Company order — contributed $22.8 million toward CUC’s SO2 projects. This included $17.8 million in Department of the Interior grants earmarked for the CNMI and a $5 million monetary payment from the Commonwealth government.
