Lack of Money for Spare Parts Costs WAPA in EPA Fines, But Consent Decree Exit Remains in Reach

Facing nearly $60,000 in fines due to critical spare part shortages, WAPA’s cash flow crisis challenges its compliance with EPA regulations. Despite hurdles, officials anticipate a potential release from the St. Thomas consent decree by early 2025.

The V.I. Water & Power Authority is currently grappling with a significant impact of their ongoing financial crisis. Their lack of money to purchase adequate backup and square equipment means mounting fines from the U.S. Environmental Protection Agency. Historically, WAPA has been subject to two consent decrees over national air quality standards, although the one governing St. Croix was subsequently terminated as the requirements under that decree had largely been satisfied.

However, despite having already petitioned the EPA to exit the consent decree that governs operations on St. Thomas, WAPA must continue to abide by its strictures in the interim. One of those is a requirement to maintain an adequate inventory of spare parts. Fines are assessed for WAPA's failure to keep a sufficient supply of parts in stock, said Maxwell George, environmental manager. “It starts off at around $150 a day,” he noted. “After about a week or so, it escalates to $500 a day. After an additional 10 days, it goes to $1,000 a day.” Mr. George continued. Right now, a total of just under $60,000 in such fines have been amassed, WAPA's environmental manager told board members. “That is with the discount. Without the discount, it's $120,000,” he informed.