The Honolulu Board of Water Supply (BWS) has made the obvious and necessary decision to seek compensation from the U.S. Navy for its gross incompetence in managing the Red Hill Bulk Fuel Storage Facility.
BWS filed a $1.2 billion claim through the Federal Tort Claims Act (FTCA), a law enacted in 1946 to allow plaintiffs to receive compensation from the federal government for the wrongful or negligent acts of a federal employee.
The size of the claim matches the tort.
The unconscionable dereliction of duty by Navy officers in charge of Red Hill — played out over years denials and stonewalling, and culminating in the November 2021 fuel leak that contaminated Oahu’s groundwater and poisoned the water supply of its own service members and families — has left Oahu residents with a compromised sole-source aquifer and facing years of costly mitigation work.
Now, water rates for BWS customers are poised to increase substantially. The board today is scheduled to vote on a proposal to increase water rates by 8%-10% annually, from 2024 to 2029, in part because “our water supply is under unprecedented threat from the Red Hill fuel crisis,” BWS said. Other cost factors include the impact of COVID-19 on water usage, inflation and increasing costs of electricity.
Among the costs BWS cited relating to Red Hill include new investments in monitoring wells to track any contamination and exploratory wells to find new, safe sources of water.
The BWS also intends to replace its Halawa Shaft and several Aiea and Halawa drinking water wells, expensive propositions that are a significant part of the $1.2 billion claim.
Certainly, Oahu ratepayers should not have to shoulder the full burden of the Navy’s mismanagement. But getting the money out of the federal government could be a long, tortuous process. The Navy has shown little interest in making up for its bad behavior. It has denied earlier requests for compensation from the BWS and those exposed to contamination. The Navy secretary, Carlos Del Toro, issued letters of censure — mere slaps on the wrist — to three retired admirals, and nonpunitive letters of censure to seven captains at the heart of the crisis. Frustrated, military families affected by the fuel spills have filed a class-action lawsuit against the government, seeking compensation and accountability. If the BWS doesn’t get satisfaction through the FTCA, it will have to sue as well.
Meanwhile, BWS says it can’t hold off on rate increases while waiting to find out if the Navy will pay up, which could take years. It said the process of developing new water sources “must begin now so these sources will be online in five to seven years. BWS cannot wait for reimbursement before starting these projects, but we will continue to pursue funds from the Navy.”
Maybe so, but it’s small consolation for individuals and business owners who must endure a water bill increasing along with all their other ones. And while BWS will offer ways to reduce your bill with incentives to conserve water, paying more appears unavoidable. As it says on BWS’s trucks, “There is no substitute for pure water.”
Should the board approve the rates today, BWS will need to ensure that it maintains tight cost controls and invests in capital improvements with a long shelf life. Our congressional delegation also needs to push hard for the Navy to atone for its dereliction and make a deal soon; the military may be able to drag out this dispute, but Oahu residents simply can’t afford it.
The Red Hill tanks have been mostly emptied by Joint Task Force-Red Hill, never to be used for fuel again. But the Navy still owns the facility and is responsible for its final closure — something that won’t be complete until it settles up with the public it has harmed.
