GPA $400K penalty acceptable to CCU

The Guam Power Authority's oldest generators -- Cabras 1 and 2 -- are located in Piti.

The $400,000 penalty that the Guam Power Authority will have to pay for Clean Air Act violations is a lot less than the multi-million dollar penalty GPA was threatened with, according to Consolidated Commission on Utilities Chairman Joey Duenas.

The reduced penalty is part of a consent decree agreement reached between the U.S. EPA and GPA which requires the power authority to build a new power plant and add renewable energy assets to the island’s power grid.

The CCU approved the consent decree unanimously during their meeting Tuesday night.

“We are reducing our carbon footprint. We’re doing a lot of things that they like. And we’re going to shut down some of the older generators. We’re getting out of stuff that is not good for the environment. We’re going to go to ultra-low sulfur diesel as a fuel,” Duenas said.

Dirty emissions from the aging Cabras power plants prompted the U.S. EPA to cite GPA for Clean Air Act violations in 2013.

The penalties have added up over the years and Duenas said GPA would have been on the hook for more than $300 million in fines if the consent decree had not been approved.