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Case 1:22-cv-00051 Document 1 Filed 02/02/22 Page 1 of 33 PageID #: 1

TODD KIM
Assistant Attorney General
Environment & Natural Resources Division
U.S. Department of Justice
LUCY E. BROWN (HI Bar #10946)
LESLIE M. HILL (DC Bar #476008)
DAVID D. MITCHELL (IL Bar #6302250)
Environmental Defense Section
P.O. Box 7611
Washington, D.C. 20044-7611
Tel: (202) 598-1868 (Brown)
Fax: (202) 514-8865
Email: lucy.e.brown@usdoj.gov
Email: leslie.hill@usdoj.gov
Email: david.mitchell@usdoj.gov

ELLIOT ENOKI (HI Bar #1528)


Executive Assistant U.S. Attorney
District of Hawaii
Attorney for the United States,
Acting under Authority Conferred by
28 U.S.C. § 515
DANA A. BARBATA (HI Bar #9112)
Assistant U.S. Attorney
PJKK Federal Bldg., Room 6-100
300 Ala Moana Boulevard
Honolulu, HI 96850
Telephone: (808) 541-2850
Facsimile: (808) 541-3752
Email: dana.barbata@usdoj.gov

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT


DISTRICT OF HAWAII
UNITED STATES OF AMERICA, CIVIL NO.

Plaintiff, COMPLAINT FOR


v. DECLARATORY
Case 1:22-cv-00051 Document 1 Filed 02/02/22 Page 2 of 33 PageID #: 2

AND INJUNCTIVE
DEPARTMENT OF HEALTH, STATE OF RELIEF
HAWAII; ELIZABETH A. CHAR, in her official
capacity as Department of Health Director;
MARIAN E. TSUJI, in her official capacity as
Department of Health Deputy Director;

Defendants,

and

SIERRA CLUB; BOARD OF WATER SUPPLY,


CITY AND COUNTY OF HONOLULU,

Intervenor-Defendants.

INTRODUCTION

1. The United States Department of the Navy (the “Navy”) fi les this

Complaint pursuant to 28 U.S.C. §§ 2201–02 and Hawaii Revised Statutes

(“HRS”) §§ 91-14 and 342L-13 to protect its rights respecting an order issued by

the Hawaii Department of Health, Docket No. 21-UST-EA-02, on January 3, 2022

(the “Final Order”). See Exhibit A. The Final Order ounlawfully imposes certain

requirements on the Navy’s management of the Red Hill Bulk Fuel Storage

Facility (“Red Hill” or “Facility”), which stores fuel to support U.S. military forces

throughout the Indo-Pacific Command area of responsibility. The Navy hopes to

resolve any differences with the State of Hawaii regarding the Final Order through

negotiation, but files this suit out of an abundance of caution to satisfy the 30-day

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statute of limitations that Hawaii law imposes on judicial review of such orders.

See HRS § 91-14(b).

2. Since 2015, the Navy has worked closely with the Hawaii Department

of Health (“DOH”), the United States Environmental Protection Agency (“EPA”),

and other partners as the Navy conducts environmental analyses and infrastructure

improvements to minimize the threat of any fuel releases at Red Hill. This work

has been carried out in accordance with an administrative agreement between

DOH, the Navy, EPA, and the Defense Logistics Agency. The Navy has also

endeavored to obtain all necessary authorizations from DOH for the operation of

the underground storage tanks at Red Hill.

3. On November 20, 2021, the Navy recovered approximately 14,000

gallons of a fuel-and-water mixture that had been released from a fire suppression

drain line located about a quarter of a mile downhill of the fuel tanks at Red Hill.

The Navy quickly initiated an investigation into the release. Following reports of a

chemical or petroleum odor in the water in the Navy’s water distribution system,

the Navy immediately began testing the water and, along with the United States

Army and others, providing potable and bottled water to residents. The Navy has

also provided information and held town halls for the Joint Base Pearl Harbor-

Hickam community and arranged for alternative housing, laundry service, and

medical assistance.

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4. On November 28, 2021, the same day the Navy began receiving

reports of a chemical or petroleum odor in drinking water, the Navy shut down the

Red Hill Shaft, one of three wells the Navy used to service the Navy’s water

distribution system. The Navy later verified that the Red Hill Shaft was

contaminated by the November 20, 2021 release. In coordination with DOH and

EPA, the Navy is in the process of completely flushing and testing the system.

5. On December 6, 2021, DOH issued an ex parte Emergency Order

directing the Navy to suspend operations at Red Hill, to install a drinking water

treatment system at Red Hill Shaft, and to take a variety of other actions, including

the defueling of the underground storage tanks at Red Hill. See Exhibit B. On

January 3, 2022, after an expedited hearing, DOH adopted the requirements of the

Emergency Order in a Final Order.

6. These Orders were premised on HRS § 342L-9, which authorizes

emergency powers and procedures only when “an imminent peril to human health

and safety or the environment is or will be caused by: (1) A release; (2) Any action

taken in response to a release from an underground storage tank or tank system; or

(3) The installation or operation of an underground storage tank or tank system . . .

that requires immediate action[.]” The Final Order adopted the reasoning of the

administrative hearings officer that two such “imminent perils” required immediate

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action: first, the November 20, 2021 release; and second, the very existence of Red

Hill.

7. The Navy recognizes that the November 2021 release and subsequent

contamination of the Red Hill Shaft was an emergency and is committed to

remediating the situation. The Final Order, however, reaches beyond the

November 2021 release and, in so doing, exceeds the emergency powers granted

DOH under HRS § 342L-9. Rather than direct action that may be necessary to

remediate the November 2021 release, the Final Order goes further, effectively

seeking to shut down the Red Hill facility itself. HRS § 342L-9 was not written to

address long-term issues, which are the subject of other Hawaii statutes. And the

swift and truncated nature of the hearing DOH provided for review of the

Emergency Order was inadequate to evaluate the entire Red Hill facility.

8. Whether the entire facility is built and operated in a manner that

protects human health and the environment is the subject of ongoing permitting

proceedings following DOH’s proposal to issue a permit for the underground

storage tanks in June 2021. And the actions necessary to manage long-term risk

for the entire facility are also the subject of the pre-existing administrative

agreement. Though the Navy shares DOH’s commitment to improving Red Hill

and securing the health and safety of Hawaiian citizens and the environment, the

Final Order here was not a lawful means for achieving these ends.

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9. Accordingly, Plaintiff, United States of America, files this Complaint

pursuant to 28 U.S.C. §§ 2201–02 and HRS §§ 91-14 and 342L-13 to protect its

right to present these objections, and, if unable to resolve this matter through

negotiation, requests the Court to reverse, modify, or remand the Final Order in the

manner identified herein.

PARTIES

10. Plaintiff in this action is the United States of America.

11. Defendants in this action are DOH, Elizabeth A. Char, in her official

capacity as Director of DOH (“Director”), and Marian E. Tsuji, in her official

capacity as Deputy Director of DOH (“Deputy Director Tsuji”).

12. Intervenor-Defendants in this action are Sierra Club and Board of

Water Supply, City and County of Honolulu (“BWS”).

13. Sierra Club and BWS intervened in the administrative proceedings

below and are joined as defendants pursuant to Federal Rule of Civil Procedure

19(a)(1).

JURISDICTION & VENUE

14. This Court has jurisdiction pursuant to 28 U.S.C. § 1345 (United

States as plaintiff).

15. Venue is proper in the District of Hawaii pursuant to

28 U.S.C. § 1391(b)(1)–(2) because DOH resides in this judicial district, a

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substantial part of the events or omissions giving rise to the claims asserted herein

occurred in this judicial district, and the Facility is situated in this judicial district.

EXHAUSTION OF ADMINISTRATIVE REMEDIES

16. A hearing on the Emergency Order was required by law.

HRS § 342L-9(a).

17. DOH appointed an administrative hearings officer to preside over a

virtual hearing on the Emergency Order.

18. A hearing was held on December 20 and 21, 2021.

19. The hearing determined applicable rights, duties, and privileges with

respect to the Navy’s operation of the Facility.

20. The Navy participated in the hearing.

21. On December 27, 2021, the hearings officer issued Proposed Findings

of Fact, Conclusions of Law, and Decision and Order (“Proposed Order”),

adopting all five Directives of the Emergency Order. See Exhibit C.

22. Pursuant to Hawaii Administrative Rules (“HAR”) § 11-1-42(b), the

Navy timely filed exceptions to the Proposed Order.

23. On January 3, 2022, Deputy Director Tsuji issued the Final Order,

adopting the Proposed Order in all substantive respects.

24. The United States has exhausted all administrative remedies.

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25. The United States files this action in federal district court because

Congress established that “civil actions, suits or proceedings” can be brought in

federal court when the United States acts as a plaintiff. 28 U.S.C. § 1345.

26. Following the filing of this action, the United States will file a similar

action in Hawaii state circuit environmental court in Honolulu County. That suit

will be filed only out of an abundance of caution in the event that, for any reason,

this Court does not exercise jurisdiction over this action.

LEGAL BACKGROUND

I. The Resource Conservation and Recovery Act

27. The Resource Conservation and Recovery Act (“RCRA”),

42 U.S.C. §§ 6901–6992k, sets forth a comprehensive regulatory framework for

the management of solid and hazardous wastes from generation to final disposal.

28. RCRA Subchapter IX, 42 U.S.C. §§ 6991–6991m, governs the

regulation of underground storage tanks (“USTs”).

29. Departments, agencies, and instrumentalities of the federal

government must comply with state and local “requirements, both substantive and

procedural . . . , respecting underground storage tanks in the same manner, and to

the same extent, as any person is subject to such requirements[.]” 42 U.S.C.

§ 6991f(a). “Requirements” include “all administrative orders and all civil and

administrative penalties and fines, regardless of whether such penalties or fines are

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punitive or coercive in nature or are imposed for isolated, intermittent, or

continuing violations.” Id.

II. Hawaii’s UST Program

30. Hawaii sought and obtained EPA’s approval to regulate UST systems

within Hawaii’s jurisdiction. Hawaii; Final Approval of State Underground

Storage Tank Program, 67 Fed. Reg. 60,161, 60,161 (Sept. 25, 2002) (approving

program under EPA’s 1988 UST regulations). On July 30, 2020, EPA proposed to

approve Hawaii’s program revision addressing the 2015 revisions to the federal

UST regulations. Hawaii: Proposed Authorization of Underground Storage Tank

Program Revisions, 85 Fed. Reg. 49,611 (Aug. 14, 2020).

31. DOH implements Hawaii’s UST regulatory program as set forth in

HRS division 1, title 19, chapter 342L and Hawaii Administrative Rules title 11,

subtitle 1, chapter 280.1.

32. HRS § 342L-9 governs DOH’s emergency powers and procedures in

the event “that an imminent peril to human health and safety or the environment is

or will be caused by: (1) A release; (2) Any action taken in response to a release

from an underground storage tank or tank system; or (3) The installation or

operation of an underground storage tank or tank system . . . that requires

immediate action[.]”

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33. In the event of such an “imminent peril . . . requir[ing] immediate

action,” section 342L-9(a) provides that the Governor of Hawaii or the Director of

DOH “may order any person causing or contributing to the peril to immediately

reduce or stop the release or activity, and may take any and all other actions as may

be necessary.”

34. HRS § 342L-9(a) further provides that “[t]he order shall fix a place

and time, not later than twenty-four hours thereafter, for a hearing to be held before

the director.”

35. The term “any person” as used in section 342L-9 includes federal

agencies. See HRS § 342L-1.

36. DOH requires a permit to operate UST systems and provides a

permitting procedure to determine whether such operation is protective of human

health and safety and the environment. See generally HAR Chapter 11-280.1,

Subchapter 12.

37. Permit decisions are subject to a contested hearing at which a

permittee is afforded the opportunity to present evidence and argument on whether

the long-term operation of a UST system is protective of human health and safety

and the environment. See HRS § 91-9.

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III. Hawaii Contested Case Hearings

38. Under Hawaii state law, “[a] contested case hearing is one that is (1)

required by law and (2) determines the rights, duties, and privileges of specific

parties.” Matter of Haw. Elec. Light Co., Inc., 145 Haw. 1, 13, 445 P.3d 673, 685

(2019) (internal citation omitted); see also HAR § 11-1-3.

39. DOH’s contested case hearings are governed by the Hawaii

Administrative Procedure Act, HRS division 1, title 8, chapter 91, and HAR

chapter 1, subchapter 2, §§ 11-1-21 through 11-1-43.

40. HRS § 91-9(a) and (b) require that an agency’s notice for a contested

case “shall include . . . the particular sections of the statutes and rules involved”

and “[a]n explicit statement in plain language of the issues involved and the facts

alleged by the agency in support thereof,” as well as “an opportunity for hearing

after reasonable notice.”

41. HRS § 91-9(d) further requires that “[o]pportunities shall be afforded

all parties to present evidence and argument on all issues involved.”

42. HRS § 91-12 states that “[e]very decision and order adverse to a party

to the proceeding, rendered by an agency in a contested case, shall be in writing or

stated in the record and shall be accompanied by separate findings of fact and

conclusions of law. If any party to the proceeding has filed proposed findings of

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fact, the agency shall incorporate in its decision a ruling upon each proposed

finding so presented.”

43. Judicial review of emergency orders issued by DOH under

HRS § 342L-9 is governed by HRS §§ 91-14 and 342L-13.

44. A reviewing court may reverse or modify an administrative order if

the “substantial rights” of the aggrieved party have been prejudiced by the order

and it is “in violation of constitutional or statutory provisions,” “in excess of the

statutory authority or jurisdiction of the agency,” “made upon unlawful

procedure,” “affected by other error of law,” “clearly erroneous in view of the

reliable, probative, and substantial evidence on the whole record,” “arbitrary, or

capricious, or characterized by abuse of discretion,” or based on a “clearly

unwarranted exercise of discretion.” HRS § 91-14(g). A reviewing court may also

remand the case to the agency with instructions for further proceedings without

making such findings. Id.

FACTUAL BACKGROUND

I. Red Hill Bulk Fuel Storage Facility

45. The Navy owns and operates the Red Hill Bulk Fuel Storage Facility

on the Island of Oahu, Hawaii.

46. The Facility stores jet propellant fuel, aviation turbine fuel, and

marine diesel fuel in bulk underground storage tanks.

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47. The Facility was built by the United States during World War II and

began operating in 1943.

48. There are 20 bulk USTs at the Facility, 14 of which currently contain

fuel. Each tank is 100 feet in diameter, 238 to 250 feet in height, and can store up

to 12.5 million gallons of fuel.

49. Each UST has a double block and bleed valve for isolation (positive,

verifiable shutoff) of the UST and its fuel from the rest of the Facility.

50. Fuel is transferred in and out of the tanks via pipelines located in a

concrete tunnel that runs between the tanks and Pearl Harbor. The pipelines are

visible within the tunnel for inspection.

51. Fuel stored at the Facility constitutes strategic reserve available to

support U.S. military forces throughout the Indo-Pacific Command area of

responsibility.

II. 2014 Release and Administrative Order on Consent

52. In 2014, approximately 27,000 gallons of fuel leaked from a UST at

Red Hill that had been incorrectly repaired by a contractor.

53. In 2015, the Navy entered into an Administrative Order on Consent

(“AOC”) with DOH, EPA, and the Defense Logistics Agency (“DLA”) to take

steps to ensure that the groundwater resource in the vicinity of the Facility is

protected and the Facility is operated and maintained in an environmentally

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protective manner. The AOC “provides for the performance by Navy and DLA of

a release assessment, response(s) to release(s), and actions to minimize the threat

of future releases in connection with the . . . Facility . . . and on any property that

may be affected now or in the future by petroleum or other substances released

from the Facility.”

54. The Statement of Work for the AOC contains comprehensive

requirements that the Navy and DLA must fulfill to ensure that Red Hill is

operated in an environmentally protective manner and that the groundwater

resource in the vicinity of the Facility is protected. The AOC and Statement of

Work require the Navy and DLA to submit deliverables to EPA and DOH for

approval or modification.

55. The AOC provides that, “unless required on an emergency basis, no

[HRS § 342L-9 enforcement] shall be taken in relation to any activity within the

scope of this AOC unless a Party has first made good faith efforts to address the

issue through a modification to this AOC and, if necessary, through the Dispute

Resolution process set forth” in the AOC.

III. Red Hill UST Permit Proceeding

56. DOH is the regulatory agency authorized to issue permits for the

operation of USTs in the State of Hawaii. The DOH Director may issue such

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permits for up to five years if the Director determines that doing so would “be

protective of human health and the environment[.]” HRS § 342L-4(c).

57. DOH’s UST regulations required the Navy to apply for a permit to

operate the USTs at Red Hill by July 15, 2019. See HAR §§ 11-1-280.1-

10(a)(1)(A), 11-280.1-323.

58. The Navy timely submitted a permit application to DOH.

59. In a letter dated July 16, 2019, DOH confirmed the Navy’s application

to be timely. DOH further stated that it intended to allow the Navy to continue to

operate the Red Hill UST system until a decision on the permit application was

rendered.

60. When DOH issued the draft permit for public notice and comment,

Sierra Club and BWS requested a contested case hearing. DOH Environmental

Health Administration (“EHA”) also joined as a party to the contested case

hearing.

61. A contested case hearing was held before a DOH hearings officer

from February 1–8, 2021 and was reopened on July 7, 2021 to receive additional

evidence and testimony.

62. The hearings officer took evidence and testimony on geology and

subsurface characteristics at Red Hill; groundwater at and near Red Hill; past

releases of fuel; soil vapor and groundwater monitoring; tank construction and

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compliance with the Hawaii Administrative Rules; tank inspection, repair, and

maintenance; leak detection methods and requirements; corrosion extent, detection,

and repair; extent of the monitoring well network; seismicity; and a release that

occurred on May 6, 2021.

63. On September 20, 2021, the hearings officer issued a Proposed

Decision and Order, Findings of Fact, and Conclusions of Law (“Permit Proposed

Order”) recommending that DOH issue a permit authorizing the Navy to operate

and maintain Red Hill for a period of five years subject to certain conditions.

64. In November 2021, EHA, Sierra Club, and BWS moved to reopen the

hearing, which the Navy opposed.

65. The hearings officer has withdrawn the Permit Proposed Order “for

possible revision following the receipt of further evidence and information” in the

Permit Proceeding. That proceeding is ongoing.

IV. May 6, 2021 Release

66. On or about May 6, 2021, operator error during a fuel transfer caused

a transient pressure surge in a pipe near some of the Red Hill USTs.

67. The pressure surge caused a rupture in the pipe, from which fuel was

released into the lower access tunnel area beneath the USTs.

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68. The Navy promptly notified DOH about the spill. The Navy

estimated that approximately 1,600 gallons of fuel had been released, but believed

that most had been recovered.

69. The May 6, 2021 release was from a ruptured pipe, and not from the

USTs.

V. November 20, 2021 Release

70. On or about November 20, 2021, a drain line for the fire suppression

system at Red Hill was damaged at a point in the concrete tunnel approximately a

quarter-mile downslope from the Red Hill USTs, releasing a fuel-water mixture

into the tunnel between the tanks and Pearl Harbor.

71. Approximately 14,000 gallons were contained and recovered.

72. The fire suppression system is designed to collect dispersed agent and

other liquids from firefighting incidents in retention sumps. The contents are then

transferred via sump pump to a fire suppression system retention tank. The

collection lines are ordinarily empty and are not connected to the fuel pipelines or

USTs.

73. There is no evidence that the November 20, 2021 release was due to a

flaw, hole, or other problem in a UST.

74. The Navy believes the May 6 and November 20, 2021 releases are

likely related, but its investigation is not yet final.

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VI. The Navy’s Response to the November 20, 2021 Release

75. On November 23, 2021, the Commander, U.S. Pacific Fleet, convened

an investigation into the May 6 and November 20, 2021 incidents.

76. The Navy owns and operates a water system that pumps water from

underground aquifers to provide drinking water to the military community and

facilities associated with Joint Base Pearl Harbor-Hickam (“JBPHH”), including

Public-Private Venture Housing (“PPV”).

77. Three wells supply the Navy’s drinking water system: the Red Hill

Shaft, Navy Aiea-Halawa Shaft, and Waiawa Shaft. The November 20, 2021

release migrated to the Red Hill Shaft and contaminated the Red Hill Shaft.

78. The Navy shut down Red Hill Shaft on November 28, 2021, after

receiving complaints from residents of PPV Housing and JBPHH about the odor of

the drinking water supplied by the Navy’s drinking water system.

79. The Navy immediately began sampling water within its water

distribution system, and has continued to do so. The Navy promptly conveys

sampling results to DOH as they are received.

80. Red Hill Shaft remains shut down.

81. By November 30, 2021, the Navy had begun providing bottled and

bulk replacement water supplies to all affected residents and users served by its

water system, and alternative facilities for bathing and laundry.

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82. On December 3, 2021, the Commander, U.S. Pacific Fleet, amended

the command investigation convened on November 23, 2021, directing that the

investigating officer investigate whether the events of May 6 and November 20,

2021 contributed to or caused the contamination of the Red Hill Shaft.

83. Out of an abundance of caution, the Navy shut down Aiea-Halawa

Shaft on December 3, 2021.

84. On December 7, 2021, the Secretary of the Navy directed the Chief of

Naval Operations to continue isolating the Red Hill and Aiea-Halawa Shafts until

the water distribution main and all affected homes and buildings have been flushed

and can be supplied with potable water that meets EPA drinking water standards.

85. To treat the water at Red Hill Shaft, the Navy purchased two Granular

Activated Carbon water filtration units (“GACs”) capable of filtering up to 10

million gallons per day, a system that can be replaced by a permanent water

treatment system in the future.

86. The Navy is supplying water from the unaffected Waiawa Shaft to

affected housing.

87. The Navy utilized 25 smaller GACs to flush and treat the water

distribution system. Initial flushing of all distribution lines has been completed.

Testing of the distribution lines is ongoing.

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88. The Navy is also flushing and testing all affected homes and

buildings.

89. The Navy voluntarily suspended operations at the Red Hill USTs until

the investigation into the cause of the contamination is complete.

VII. The Emergency Order

90. On December 6, 2021, DOH issued an Emergency Order pursuant to

HRS § 342L-9.

91. The Emergency Order states that it is “based upon recent impacts on

the [Navy’s] drinking water system incident to the operation of the Red Hill Bulk

Fuel Storage Facility.”

92. The Emergency Order describes the “Situation” presented as: the

complaints from water users of a gas or fuel odor from their drinking water, the

Navy’s acknowledgment that Red Hill Shaft is the source of the fuel

contamination, and the absence of on-site remedies available to treat the water

prior to distribution.

93. As “additional justifications,” the Emergency Order cites purported

failures on the part of the Navy to submit deliverables under the AOC that satisfy

DOH, uncertainty as to the amount of fuel released in the May 6, 2021 incident,

the possibility that the November 20, 2021 incident released fuel into the

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environment, and a lack of infrastructure and procedures to rapidly identify and

contain subterranean fuel spills.

94. The Emergency Order does not state that the Red Hill Facility itself is

an imminent peril requiring immediate action. Nor does the Emergency Order

state that the “configuration and operation of the Facility” is the basis for the order.

The Emergency Order does not specify that “the configuration and operation of the

Facility” itself authorizes action under HRS § 342L-9. However, DOH’s later

order repeatedly refers to the configuration and operation of the Facility as an

imminent peril requiring immediate action.

95. The Emergency Order has five Directives.

96. Directive One requires the Navy to “[i]mmediately suspend operations

including, but not limited to, fuel transfers at the Bulk Fuel Storage Tanks at the

Facility. [The Navy] shall, however, maintain environmental controls, release

detection and release response protocols, and compliance with applicable

regulations.”

97. Directive Two requires the Navy to “[t]ake immediate steps to install

a drinking water treatment system or systems at Red Hill Shaft to ensure

distribution of drinking water conforms to the standards prescribed by the Safe

Drinking Water Act and applicable regulations and minimize movement of the

contaminant plume(s). The treatment system(s) shall be reviewed and approved by

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the Department prior to installation and shall be installed as expeditiously as

practicable.”

98. Directive Three directs the Navy to, “[w]ithin 30 days of receipt of

this [Emergency Order], submit a workplan and implementation schedule, prepared

by a qualified independent third party approved by the Department, to assess the

Facility operations and system integrity to safely defuel the Bulk Fuel Storage

Tanks. Upon the Department’s approval of the assessment, workplan and

implementation schedule, conduct necessary repairs and make necessary changes

in operations to address any deficiencies identified in the assessment and

workplan. Corrective actions shall be performed as expeditiously as possible.”

99. Directive Four requires the Navy to, “[w]ithin 30 days of completion

of required corrective actions under Item 3, defuel the Bulk Fuel Storage Tanks at

the Facility. Any refueling shall be subject to a determination by the Department

that it is protective of human health and the environment.”

100. Directive Five directs the Navy to perform an overall long-term risk

assessment and implementation of conditions to mitigate long-term risk,

specifically, “[w]ithin 30 days of receipt of this [Emergency Order] submit a

workplan and implementation schedule, prepared by a qualified independent third

party approved by the Department, to assess operations and system integrity of the

Facility to determine design and operational deficiencies that may impact the

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environment and develop recommendations for corrective action. Submit the

assessment, proposed work and recommendations for corrective action to the

Department with an implementation schedule. Upon the Department’s approval,

perform work and implement corrective actions. Corrective actions shall be

performed as expeditiously as possible.”

101. The Emergency Order does not state how the Directives relate to, and

may be necessary with respect to, any findings made by DOH.

102. Emergency Order Directive 1 does not provide how or when it will

terminate.

103. Emergency Order Directive 4 states that “[a]ny refueling shall be

subject to a determination by [DOH] that it is protective of human health and the

environment.” Directive 4 does not state how or when such a determination would

be made.

104. DOH has not utilized the dispute resolution requirements of the AOC

to address any alleged long-term risk associated with the configuration and overall

operation of the Facility.

VIII. Contested Case Hearing on the Emergency Order and Final Order

105. Pursuant to HRS § 26-38, DOH Director Char delegated to Deputy

Director Tsuji “all powers, rights, and duties necessary to make a final

determination in this matter, in accordance with section 11-1-42(c), HAR.”

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106. A hearings officer presided over a virtual hearing on December 20

and 21, 2021.

107. Sierra Club and BWS intervened in the hearing.

108. The hearings officer scheduled one day for hearing testimony; Navy

and DOH were each allowed three hours to conduct direct and cross-examination

of witnesses. Sierra Club and BWS were each allowed two hours for the same.

109. At the hearing, the Navy introduced four witnesses and 65 exhibits,

DOH introduced four witnesses and 51 exhibits, BWS introduced two witnesses

and 342 exhibits (amounting to over 42,000 pages), and Sierra Club introduced six

witnesses and 40 exhibits (amounting to over 4,000 pages).

110. The Navy filed 223 proposed findings of fact (“FOFs”) and 22

proposed conclusions of law (“COLs”). DOH, Sierra Club, and BWS jointly filed

97 proposed FOFs and 46 proposed COLs.

111. The hearings officer issued a Proposed Order on December 27, 2021.

Although the Emergency Order states that it is based on “recent impacts to the

[Navy’s] drinking water system,” the Proposed Order concludes that the

Emergency Order “alleges two separate, but related ‘perils.’” The Proposed Order

states that the “first alleged ‘peril’ concerns the November 2021 Release, the

contamination of the Red Hill Shaft, the harm caused to Hawaii residents, and the

response thereto.” The Proposed Order states that the “second alleged ‘peril’ is the

24
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Red Hill Facility itself, based upon the history of releases, the lack of ‘necessary

environmental protection to rapidly identify and remediate fuel leaks,’ and the

assertion that the Navy ‘has not demonstrated that immediate and appropriate

response actions are available, and therefore cannot ensure that immediate and

appropriate response actions will be available should another release occur[] in the

future.’” The Proposed Order adopts all five Directives of the Emergency Order

but does not explain how or why each Directive may be necessary based on the

November 2021 release or based on the Red Hill Facility as currently configured

and operated.

112. The Proposed Order contains 106 FOFs and 38 COLs.

113. FOFs 33, 42, 60, and 61 of the Proposed Order are the only findings

that include citations to the record.

114. The Final Order did not rule on any of the FOFs proposed by any

party.

115. The Final Order adopted the Proposed Order in all respects except for

a typographical error in FOF 101.

116. The Final Order does not take into account efforts the Navy has taken

or will take in response to the November 2021 release pursuant to orders from the

Secretary of the Navy. With respect to future actions of the Navy, the Final Order

states that the commitments of the Secretary of the Navy “can be rescinded, in

25
Case 1:22-cv-00051 Document 1 Filed 02/02/22 Page 26 of 33 PageID #: 26

whole or in part . . . at any time.” The Final Order does not appear to take into

account any changed conditions.

FIRST CLAIM FOR RELIEF

The Evidence Presented Does Not Support a Finding that the Configuration
and Operation of the Red Hill Facility Itself Poses an Imminent Peril
Requiring Immediate Action Under HRS § 342L-9
117. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 116 of this Complaint.

118. The Final Order is based on a finding that there are two alleged

imminent perils requiring immediate action, the first being the November 2021

release and the second being the configuration and operation of Red Hill itself.

119. Contrary to the second finding, the configuration and operation of the

Red Hill Facility itself is not an imminent peril that requires immediate action

under HRS § 342L-9.

120. The Final Order Directives, insofar as they are based on an imminent

peril requiring immediate action that is caused by or that will be caused by the

configuration and operation of the Red Hill Facility itself, are in excess of DOH’s

statutory authority under HRS § 342L-9; clearly erroneous; arbitrary, capricious,

and an abuse of discretion; clearly unwarranted; or otherwise not in accordance

with the law.

26
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SECOND CLAIM FOR RELIEF

DOH Has Not Shown That the Final Order Directives Are Necessary to
Address the Configuration and Operation of the Red Hill Facility Itself, And
Hence Could Be Authorized Under HRS § 342L-9
121. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 120 of this Complaint.

122. DOH has not shown that the Final Order Directives may be necessary

to address the second alleged imminent peril requiring immediate action, i.e., the

configuration and operation of the Red Hill Facility itself.

123. The Final Order Directives, to the extent they are based on the

configuration and operation of Red Hill itself are thus in excess of DOH’s statutory

authority under HRS § 342L-9; clearly erroneous; arbitrary, capricious, and an

abuse of discretion; clearly unwarranted; or otherwise not in accordance with the

law.

THIRD CLAIM FOR RELIEF

DOH Has Not Shown that Final Order Directives 3, 4, and 5 Are
Authorized Under HRS § 342L-9 to Address the November 2021 Release
124. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 123 of this Complaint.

125. DOH has not shown that Final Order Directives 3, 4, and 5 may be

necessary under HRS § 342L-9 to address an imminent peril requiring immediate

action that was caused by or will be caused by the November 2021 release.

27
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126. Final Order Directives 3, 4, and 5 are in excess of DOH’s statutory

authority under HRS § 342L-9; clearly erroneous; arbitrary, capricious, and an

abuse of discretion; clearly unwarranted; or otherwise not in accordance with the

law.

FOURTH CLAIM FOR RELIEF

Directives 1 and 4 Are Not Authorized Under HRS § 342L-9 Because They Do
Not Provide Sufficient Standards for Their Termination
127. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 126 of this Complaint.

128. Final Order Directive 1, requiring the suspension of operations, does

not provide sufficient standards for its termination under HRS § 342L-9.

129. Final Order Directive 4, requiring the defueling of the USTs, does not

provide sufficient standards for its termination under HRS § 342L-9.

130. Final Order Directives 1 and 4 do not consider actions that the Navy

has taken and will take to address the perils alleged to require immediate action in

the Final Order. Final Order Directives 1 and 4 do not provide for relief from or

termination of the Directives based on any changed conditions or based on the

Navy’s completion of the corrective actions alone. Final Order Directives 1 and 4

are thus not sufficiently-tailored actions under HRS § 342L-9.

131. DOH’s failure to provide sufficient standards for the termination of

Directives 1 and 4 is in excess of DOH’s statutory authority under HRS § 342L-9

28
Case 1:22-cv-00051 Document 1 Filed 02/02/22 Page 29 of 33 PageID #: 29

and, on the record presented in the contested case hearing, is clearly erroneous;

arbitrary, capricious, and an abuse of discretion; clearly unwarranted; or otherwise

not in accordance with HRS § 342L-9.

FIFTH CLAIM FOR RELIEF

DOH Violated HRS § 91-9


132. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 131 of this Complaint.

133. DOH did not provide adequate notice under HRS § 91-9(b) that the

Directives in the Emergency Order were authorized based on an imminent peril

requiring immediate action that was caused by or that will be caused by the current

configuration and operation of the Red Hill Facility itself.

134. DOH did not provide adequate notice under HRS § 91-9(a) and (b)

that any contested hearing would consider whether an imminent peril requiring

immediate action exists or will be caused by the current configuration and

operation of the Red Hill Facility itself.

135. The contested hearing did not afford the Navy sufficient opportunity

to present evidence and argument under HRS § 91-9(d) on whether an imminent

peril requiring immediate action exists or will be caused by the current

configuration and operation of the Red Hill Facility itself.

29
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136. DOH’s failure to provide adequate notice and sufficient opportunity to

present evidence and argument on whether an imminent peril requiring immediate

action exists or will be caused by the current configuration and operation of the

Red Hill Facility itself was in violation of HRS § 91-9; in excess of DOH’s

statutory authority; an unlawful procedure; clearly erroneous; arbitrary, capricious,

and an abuse of discretion; clearly unwarranted; or otherwise not in accordance

with the law.

SIXTH CLAIM FOR RELIEF

DOH Violated HRS § 91-12


137. The United States realleges and incorporates, as though fully set forth

herein, each and every allegation in paragraphs 1 through 136 of this Complaint.

138. The Final Order failed to provide citation to any evidence from the

contested hearing record for all FOFs other than the FOFs in paragraphs 33, 42, 60,

and 61.

139. The Final Order failed to rule on any of the proposed FOFs submitted

in the contested hearing by any of the parties to the hearing.

140. DOH’s failure to provide citations to evidence from the contested

hearing record for its FOFs and failure to rule on any of the proposed FOFs was in

violation of HRS § 91-12; in excess of DOH’s statutory authority; an unlawful

30
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procedure; clearly erroneous; arbitrary, capricious, and an abuse of discretion;

clearly unwarranted; or otherwise not in accordance with the law.

PRAYER FOR RELIEF

WHEREFORE, the United States respectfully requests that this Court grant

the following relief:

(1) Declare that DOH exceeded its authority under HRS § 342L-9;

(2) Declare that the Final Order Directives are not authorized under

HRS § 342L-9 to the extent they are founded on a finding that the configuration

and operation of the Red Hill Facility itself constitutes an imminent peril requiring

immediate action; and, with respect to said peril, that the Directives are clearly

erroneous; arbitrary, capricious, and an abuse of discretion; clearly unwarranted; or

otherwise not in accordance with the law;

(3) Declare that Final Order Directives 3, 4, and 5 are not authorized

under HRS § 342L-9 to the extent they are founded on a finding of imminent peril

requiring action resulting from the November 2021 Release; and, with respect to

said peril, that Directives 3, 4, and 5 are clearly erroneous; arbitrary, capricious,

and an abuse of discretion; clearly unwarranted; or otherwise not in accordance

with the law;

(4) Declare that Final Order Directives 1 and 4 are not authorized under

HRS § 342L-9 because they lack sufficient standards for their termination;

31
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(5) Declare that DOH violated HRS §§ 91-9 and 91-12;

(6) Enter preliminary injunctive relief, as may be sought by the United

States, including staying part or all of the Final Order;

(7) Vacate those portions of the Final Order that are based on a finding

that the configuration and operation of the Red Hill Facility itself is an imminent

peril requiring immediate action under HRS § 342L-9;

(8) Remand the Final Order to DOH for actions consistent with the

Court’s order; and

(9) Grant such other relief as may be just and proper.

//

//

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//

//

//

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//

//

32
Case 1:22-cv-00051 Document 1 Filed 02/02/22 Page 33 of 33 PageID #: 33

Dated: February 2, 2022 Respectfully submitted,

TODD KIM
Assistant Attorney General
Environment & Natural Resources Division
U.S. Department of Justice

/s/ Lucy E. Brown


LUCY E. BROWN (HI Bar #10946)
LESLIE M. HILL (DC Bar #476008)
DAVID D. MITCHELL (IL Bar #6302250)
Environmental Defense Section

ELLIOT ENOKI (HI Bar #1528)


Executive Assistant U.S. Attorney
District of Hawaii
Attorney for the United States,
Acting under Authority Conferred by
28 U.S.C. § 515
DANA A. BARBATA (HI Bar #9112)
Assistant U.S. Attorney

Attorneys for Plaintiff

33
Case 1:22-cv-00051 Document 1-1 Filed 02/02/22 Page 1 of 4 PageID #: 34

Exhibit A
Case 1:22-cv-00051 Document 1-1 Filed 02/02/22 Page 2 of 4 PageID #: 35

Exhibit A
Case 1:22-cv-00051 Document 1-1 Filed 02/02/22 Page 3 of 4 PageID #: 36
Case 1:22-cv-00051 Document 1-1 Filed 02/02/22 Page 4 of 4 PageID #: 37
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 1 of 6 PageID #: 38

Exhibit B
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 2 of 6 PageID #: 39

Exhibit B
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 3 of 6 PageID #: 40
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 4 of 6 PageID #: 41
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 5 of 6 PageID #: 42
Case 1:22-cv-00051 Document 1-2 Filed 02/02/22 Page 6 of 6 PageID #: 43
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 1 of 34 PageID #: 44

Exhibit C
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 2 of 34 PageID #: 45
Filed 12/27/2021, 12:10 p.m.

DEPARTMENT OF HEALTH

STATE OF HAWAII

DEPARTMENT OF HEALTH, STATE OF Docket No. 21-UST-EA-02


HAWAI‘I,

Complainant,
HEARINGS OFFICER’S PROPOSED
vs. DECISION AND ORDER, FINDINGS OF
FACT, AND CONCLUSIONS OF LAW
UNITED STATES DEPARTMENT OF
THE NAVY,

Respondent,

vs.

SIERRA CLUB and HONOLULU BOARD


OF WATER SUPPLY

Intervenors.

Exhibit C
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 3 of 34 PageID #: 46

HEARINGS OFFICER’S PROPOSED DECISION AND ORDER,


FINDINGS OF FACT, AND CONCLUSIONS OF LAW

The Hearings Officer held an evidentiary hearing on December 20 and 21, 2021.

The parties are Complainant Department of Health, State of Hawaiʻi (“DOH”);

Respondent United States Department of the Navy (“Navy”); Intervenor Honolulu Board

of Water Supply (“BWS”); and Intervenor Sierra Club.

The record of the evidentiary hearing consists of the following, including any

other evidence admitted into the record not expressly mentioned here:

Testimony

The testimony of all witnesses on December 20, 2021

Declarations of Testimonial Witnesses

· Written Testimony of Erwin M. Kawata (filed Dec. 18, 2021)

· Updated Written Testimony of David M. Norfleet (filed Dec. 19, 2021)

· Declaration of Kevin T. Aubart (filed Dec. 18, 2021)

· Declaration of Laurence Thomas Ramsey (filed Dec. 18, 2021)

· Declaration of Kimberly Charters (filed Dec. 18, 2021)

· Declaration of Melinda Healani Sonoda-Pale (filed Dec. 18, 2021)

· Declaration of Carly Lintner (filed Dec. 18, 2021)

· Declaration of Wayne Tanaka (filed Dec. 18, 2021)

· Declaration of James B. Balocki (filed Dec. 18, 2021; also Ex. N-1)

· Declaration of James G. Meyer (filed Dec. 18, 2021; also Ex. N-2)

· Declaration of Sherri R. Eng (filed Dec. 18, 2021; also Ex. N-3)

· Declaration of Captain Michael B. McGinnis (filed Dec. 18, 2021; also Ex. N-

4)
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 4 of 34 PageID #: 47

Exhibits

The following exhibits were uploaded into the joint Sharepoint exhibit database

[“DOH v. Navy (21-UST-EA-02) (Exhibits for Evidentiary Hearing)”] accessible to all of

the parties, as reflected in the following exhibit lists:

· Department of Health Exhibit List (filed Dec. 18, 2021)

· Intervenor Board of Water Supply’s Updated Exhibit List (filed Dec. 21, 2021)

· Sierra Club’s Amended Exhibit List (filed Dec. 21, 2021)

· Navy’s Witness List and [Amended] Exhibits (found in the Exhibit database,

subfolder “Navy Exhibits,” document Case No. 21-UST-EA-02 Navy Witness

Exhibit List_Update 2 12.21.2021.pdf)1

The parties submitted their own proposed findings of fact and conclusions of law.

Pursuant to instructions of the Hearings Officer on December 17 and 21, 2021, on the

record, the Hearings Officer advised the parties that due to the size of the evidentiary

record and the emergency nature of the proceedings, he would be entitled to rely upon

the parties to direct the Hearings Officer to the relevant portions of the evidentiary

record in support of their arguments. See HRS § 91-10 (“[N]o sanction shall be

imposed or rule or order be issued except upon consideration of the whole record or

such portions thereof as may be cited by any party . . . .” (emphasis added)).

The Hearings Officer considered the testimony of witnesses, reviewed

declarations and exhibits admitted into evidence, and heard the statements and

arguments of counsel. The Hearings Officer is fully advised. Pursuant to HAR § 11-1-

1The declarations of the Navy’s counsel in this proceeding Marnie E. Riddle are
exhibits N-5, N-6, and N-7.

2
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42(a)(1), the Hearings Officer makes the following Proposed Decision and Order,

Findings of Fact, and Conclusions of Law.

***

I. FINDINGS OF FACT

To the extent that these findings of fact contain conclusions of law, they shall be

considered as such.

A. Nature of the Findings of Fact

1. To the extent that there is conflicting evidence or testimony in the record,

the weight of the evidence supports the following findings of fact.

2. To the extent that evidence or testimony was impeached on cross-

examination, the weight of the evidence supports the following findings of fact.

3. The findings herein are brief, definite, and pertinent findings. They are not

elaborate findings nor negative findings in every instance. The findings do not state

every option considered, but that does not mean that such options were not considered.

See Jarrell v. Jarrell, No. 29124, 2013 WL 216302, at *5 (App. Jan. 18, 2013) (SDO).

4. The following facts have been established by a preponderance of the

evidence.

B. The Red Hill Bulk Fuel Storage Facility

5. The Red Hill Bulk Fuel Storage Facility (“Red Hill Facility”) is a field-

constructed underground storage tank (“UST”) system on the Island of Oʻahu in the

State of Hawaiʻi, approximately 2.5 miles northeast of Pearl Harbor.

6. The Navy is the owner and operator of the Red Hill Facility.

3
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7. The Red Hill Facility was constructed by the United States during World

War II and began operation in 1943.

8. The Red Hill Facility occupies approximately 144 acres of land along the

western edge of the Ko‘olau Range situated on a topographic ridge that divides the

Hālawa Valley and Moanalua Valley. It consists of twenty field-constructed USTs as

well as pipelines and other infrastructure.

9. The twenty USTs were constructed during the early 1940s by mining into

the ridge to create cavities for concrete tanks lined with ¼ inch steel plates welded

together. The USTs are constructed of concrete lined with steel, with the floor

constructed out of ½ inch steel and walls constructed of ¼ inch steel. The lower dome

is surrounded by reinforced concrete that has a minimum thickness of 4 feet, except for

the 20-foot diameter flat bottom plate at the center of the lower dome which sits on top

of a plug of concrete approximately 20 feet thick. The reinforced concrete surrounding

the cylindrical barrel of the UST is an estimated minimum of 2.5 to 4 feet of concrete.

The entire UST system is surrounded by basalt bedrock.

10. Each UST is approximately 250 feet tall, 100 feet in diameter, and

provides a fuel storage capacity of up to 12.5 to 12.7 million gallons of jet or marine fuel.

11. In addition to the twenty USTs, the Red Hill Facility includes seven miles

of tunnels with 29 miles of pipelines, ventilation systems with air intakes and exhaust

portals, a pumphouse, control room, surge tanks, slop oil and oil recovery facilities, and

a pier that can fuel ships.

///

///

4
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C. How the Red Hill Facility is Used

12. The Red Hill USTs store marine diesel (F-76) and two types of jet fuel (JP-

5 and F-24).

13. The Red Hill Facility provides fuel to domestic military services that

operate in the Pacific Area of Responsibility, including the Navy, U.S. Air Force, U.S.

Marine Corps, U.S. Army, Hawaiian National Guard, and the U.S. Coast Guard, and is

also available to support civilian authorities in the event of a local emergency or natural

disaster.

14. The USTs are connected to three pipelines that run for approximately 2.5

miles through an underground access tunnel to the underground pumphouse at Pearl

Harbor. The fuel can be moved from the Red Hill Facility USTs to Pearl Harbor via

gravity.

15. Two of the USTs (Tanks 1 and 19) are permanently empty and are no

longer in use. Another four USTs are currently empty as part of the Navy’s ongoing

clean, inspect, and repair program. The Navy generally stores fuel in 14 or 15 USTs at

the Red Hill Facility, with a total capacity of over 187 million gallons of fuel.

D. The Red Hill Facility is Situated Directly Above the Southern Oʻahu
Basal Aquifer

16. The Red Hill Facility sits directly above O‘ahu’s federally designated sole-

source groundwater aquifer, the Southern O‘ahu Basal Aquifer.

17. The bottoms of the USTs are located approximately 100 feet above the

groundwater aquifer used as a drinking source by the BWS and the Navy.

18. The Southern Oʻahu Basal Aquifer is irreplaceable.

19. This aquifer is the principal source of drinking water for the island.

5
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20. Seventy-seven percent of the total island-wide water supply comes from

the Southern O‘ahu Basal Aquifer.

21. The BWS draws on the same aquifer that underlies the Red Hill Facility to

supply drinking water to residents from Moanalua to Hawai‘i Kai.

22. There is no existing alternative drinking water source, or combination of

sources, which provides fifty percent or more of the drinking water to the designated

area, nor is there any demonstrated available alternative future source capable of

supplying the area’s drinking water needs.

23. The environment that underlies the Red Hill Facility is sensitive.

24. The aquifer is fresh and vulnerable to contamination.

E. The History of Recorded Releases from the Red Hill Facility


Predating the November 2021 Release

25. There have been numerous reported releases from the Red Hill Facility

over the past 80 years or so: at least 76 incidents involving nearly 200,000 gallons of

fuel. More likely than not, these figures understate the true number of releases or the

total volume of fuel actually released.

26. Fuel releases have been a constant threat since the Red Hill Facility

became operational during the 1940s and have continued to occur.

27. In January 2014, the Navy reported a release into the environment of

approximately 27,000 gallons of fuel from Tank 5 (“January 2014 Release”). This

release occurred during the filling of Tank 5. Although the release occurred between

December 12, 2013 and January 6, 2014, the Navy did not verbally report the release to

the DOH until January 13, 2014.

6
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28. On May 6, 2021, there was a pressure surge event resulting in the release

of an initially reported approximately 1,600 gallons of jet fuel from supply piping in the

lower access tunnel tanks during the refilling of Tank 20 on May 6, 2021 (“May 2021

Release”). The 1,600 gallons of fuel reported released was likely lower than what was

actually released.

29. On July 16, 2021, there was a fuel release from a pipeline at Kilo Pier of

approximately 150 gallons (“Kilo Pier Release”).

30. Historical releases have adversely impacted the environment as is

evidenced by detection of fuel and fuel constituents in the Navy’s drinking water supply,

the groundwater under the Red Hill Facility, and the soil vapor monitoring probes in the

rocks beneath the facility.

F. The Administrative Order of Consent

31. In September 2015, the Navy and the Defense Logistics Agency—the

owner of the fuel stored at Red Hill—entered into an administrative order of consent

(“AOC”) with the Environmental Protection Agency and the DOH requiring the Navy to

conduct certain investigations and other work to address fuel releases from Red Hill.

The AOC includes a Statement of Work (“SOW”) that outlines various actions that are

“necessary to address potential impacts to human health, safety and the environment …

due to historical, recent and potential future releases at the [Red Hill] Facility.”

32. The AOC SOW consists of eight sections including: Section 1: Overall

Program Responsibility; Section 2: Tank Inspection, Repair, Maintenance (TIRM);

Section 3: Tank Upgrade Alternatives; Section 4: Release Detection/Tank Tightness

Testing; Section 5: Corrosion and Metal Fatigue Practices; Section 6: Investigation and

7
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Remediation of Releases; Section 7: Groundwater Protection and Evaluation; and

Section 8: Risk/Vulnerability Assessment.

33. Paragraph 18 (“Reservation of Rights”) of the AOC states, in pertinent

part:

Notwithstanding any other provisions of this AOC, the Regulatory


Agencies retain their authority to take, direct, or order any and all actions
necessary to protect public health, any source of drinking water or the
environment or to prevent, abate, or minimize an actual or threatened
release of hazardous substances, pollutants, or contaminants, or
hazardous or solid waste or constituents of such wastes, on, at, or from
the Facility, including but not limited to the right to bring enforcement
actions under . . . HRS chapters 340E, 342D and 342L; and any other
applicable statutes or regulations. However, unless required on an
emergency basis, no such action shall be taken in relation to any activity
within the scope of this AOC unless a Party has first made good faith
efforts to address the issue through a modification of this AOC and, if
necessary, through the Dispute Resolution process set forth in Section 14.

Ex. D05, § 18(a) (emphasis added).

G. The November 2021 Release Caused a Humanitarian and


Environmental Disaster

34. On November 20, 2021, a release of fuel occurred at the Red Hill Facility

(“November 2021 Release”). The Navy reported a release and recovery of

approximately 14,000 gallons of a mixture of fuel and water from the fire-suppression

system at the Red Hill Facility from the Navy’s fire suppression system on November

20, 2021.

35. At the evidentiary hearing, the Navy presented a “working theory” for what

happened. The Navy’s theory was that the May 2021 Release was the source of the

fuel, or that the two releases are related, and that fuel made its way into the fire-

suppression system. The Navy did not state with any exacting reliability a full picture of

what happened, or why and how the release occurred.

8
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36. The November 2021 Release caused the Red Hill Shaft, a drinking-water

source for the U.S. military, to be seriously contaminated with fuel.

37. Approximately one week following the November 2021 Release, fuel

flowed from the Red Hill Shaft to occupied structures, including the homes of residents

in military housing, and ultimately through their taps.

38. Men, women, children, and pets drank and used the contaminated water.

39. In sum, the November 2021 Release caused a humanitarian and

environmental emergency and disaster.

40. The testimony of Kimberly Charters and Carly Lintner and the video

evidence of other victims relating their experiences were highly credible and perhaps

the most important to the overall factual balancing in a finding that the November 2021

Release caused a humanitarian and environmental emergency and disaster.

41. Everything about this evidence spoke three words: disaster, crisis,

emergency. This evidence, in conjunction with the other record evidence, establishes

that:

a. The water contamination was widespread and not unique to any one

person.

b. The water coming from their taps into their homes was not just mildly

contaminated but poisoned with fuel.

c. The Navy did not provide sufficient warning; people discovered for

themselves that the water was poisoned based upon strong odors of

fuel emanating from the water, or when they or their pets got sick.

d. The interior of peoples’ homes smelled like “gas stations.”

9
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e. Men, women, and children became seriously physically ill.

f. Pets became ill, requiring medical attention, and at least one was

potentially killed.

g. People have suffered and continue to suffer mental and emotional

distress and anguish.

h. The lack of water impacted and continues to have impacts upon

virtually every important aspect of their lives.

i. Families were temporarily relocated.

j. Their lives have been and continue to be totally upended.

k. The November 2021 Release affected many thousands of Oʻahu

residents in these or similar ways.

42. The testimony of the Navy’s witnesses Captain James G. Meyer and

Captain Michael B. McGinnis is also important. Both witnesses testified that the

November 2021 Release and the water contamination caused a crisis that is still being

addressed.

43. Additionally, the Navy does not yet know the full extent of the health

effects of the contamination. People whose homes received contaminated water from

the Navy’s water system had suffered stomachaches, vomiting, nausea, diarrhea, skin

rashes, sore throats, burning eyes, headaches, and difficulty breathing, including

illnesses requiring emergency medical attention. People are still suffering mental and

emotional effects from their experiences.

44. The Navy shut down its Red Hill Shaft and the ‘Aiea-Hālawa Shaft in

response to the drinking water contamination.

10
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45. After the November 2021 Release, BWS shut off three of its well stations

that are in close proximity to the Red Hill Facility.

46. The Secretary of the Navy ordered the cessation of all operations at the

Red Hill USTs while it conducts an investigation.

47. The amount of diesel (total petroleum hydrocarbons, or TPH-d) present in

samples taken by DOH on December 5, 2021 from the Navy’s Red Hill Shaft drinking

water well indicates that the Navy’s drinking water supply was contaminated with TPH-d

levels as high as 140,000 µg/L, significantly higher than DOH environmental action level

(“EAL”). TPH-g levels (regarding other fuel) were as high as 20,000 µg/L. The TPH-d

level is 350 times the DOH’s EAL for drinking water toxicity, which is 400 µg/L. The

DOH’s EAL for drinking water toxicity is 300 µg/L for TPH-g.

48. In December 2021, diesel fuel levels in samples from the Navy’s water

distribution system at its ‘Aiea Hālawa Shaft were more than double the state-approved

levels for drinking water. This indicates that the environmental damage extends beyond

the Red Hill Shaft.

49. The Navy does not have a permanent water treatment system to address

either recent fuel releases or future fuel releases.

50. The water is not yet clean.

51. The environment has not yet been remediated.

52. The humanitarian response is ongoing.

53. The environmental response is ongoing.

54. The Navy’s investigation is ongoing.

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55. The Navy does not know precisely what happened. The Navy does not

know why or how the November 2021 Release happened at this time.

56. The Navy does not know exactly how the environment has been damaged

or the full extent of the damage.

57. The Navy does not know the exact long-term consequences of the

November 2021 Release to humans or the environment.

58. The Navy still does not know what it intends to do to address any root

causes of the November 2021 Release.

H. The Red Hill Facility, as Currently Configured and Operated, Poses


an Imminent Threat to Human Health and Safety or the Environment

59. Continued operation of the Red Hill Facility, as it is currently configured

and operated, poses an imminent threat to human health and safety or the environment.

60. The most weighty, important evidence underpinning this finding are (1) the

expert report and testimony of David M. Norfleet, and (2) the facts relating to the history

of releases from the Red Hill Facility (and especially the facts surrounding the

November 2021 Release and the aftermath) notwithstanding the Navy’s best efforts.

61. First, Mr. Norfleet’s expert report and testimony were perhaps the most

important pieces of evidence in the whole evidentiary hearing. Mr. Norfleet was

credible. His ultimate opinions survive scrutiny and are weighty enough to establish the

facts by a preponderance of the evidence, in conjunction with the other evidence

presented.

62. The facts established by his report and testimony and borne out by the

other evidence presented are:

a. More releases of fuel from the Red Hill facility are basically inevitable.

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b. The Red Hill USTs have a history of leaking and will continue to leak.

c. The probability of an acute leak of 1,000 to 30,000 gallons of fuel

each year is at least 27%, which is likely an understated percentage

d. The probability of a sudden release of more than 120,000 gallons of

fuel in the next 100 years is at least 34%, which is likely an

understated percentage.

e. The expected volume of chronic, undetected fuel releases from the

Red Hill Facility is at least 5,803 gallons per year.

f. The Navy cannot prevent future releases at the Red Hill Facility.

g. Breaches will continue to occur at the Red Hill Facility.

h. The Red Hill Facility is nearing the end of its life and has reached the

“end-of-life” phase.

63. Looking a different way at the probabilities of a 1,000 to 30,000 gallon

release, the probability of a release over the next five years is approximately 80%, with

a release of that size occurring over the next ten years approximately 96%, and a

release of that size over the next twenty years 99.8%.

64. Among the additional facts established by Mr. Norfleet and the record

evidence are:

a. The 76 reported fuel releases are more likely than not only a portion

of the true number of releases.

b. The size and scope of the Red Hill USTs are unprecedented in the oil

and gas industry.

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c. The Red Hill USTs have a serious corrosion problem that the Navy

will be unable to address over time.

d. Leaked fuel can reach the environment at large and cause harm.

e. Some USTs have gone too long without inspection.

f. The combination of the manual nature of inspections, the

dependence on the ability/competence of individual inspectors, the

presence of an internal coating on the steel liner, the difficult working

conditions, and the sheer size of the facility are detrimental to

adequate, consistent, and reliable inspections and inspection results,

which are required to prevent releases from the USTs.

65. Second, the history of releases, notwithstanding the Navy’s best efforts to

prevent them, is damning.

66. The November 2021 Release is in a way unique like all releases are in

their way unique. But taking a larger view, the November 2021 Release is simply

another datapoint along the Red Hill Facility’s track record establishing that the

problems with the Red Hill Facility, as it is currently situated, are beyond the Navy’s

ability to control.

67. In just this year, there were at least two releases before the November

2021 Release.

68. The Navy is not reliable with respect to monitoring whether leaks are

occurring, determining how much fuel is released into the environment when leaks

occur, and ascertaining threats.

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69. The Navy initially estimated the May 2021 Release from the transfer of

fuel between Red Hill tanks at approximately 1,000 gallons. Four months later, the

Navy revised its estimate upward to 1,618 gallons and claimed that it successfully

recovered all but 38 gallons of fuel. The Navy now hypothesizes—but does not know—

that the May 2021 Release may be the source of the November 2021 Release of jet

fuel.

70. The fact that the Navy theorizes that the May 2021 Release and the

November 2021 Release are connected evidences a lack of understanding of, and

control over, the Red Hill Facility.

71. The Navy obviously does not want the Red Hill Facility to release fuel, and

the Navy is trying to prevent releases. But despite everything the Navy is attempting to

do, it is not enough: the evidence shows that the Red Hill Facility is simply too old, too

poorly designed, too difficult to maintain, too difficult to inspect, along with being too

large to realistically prevent future releases. It is not just one problem but a combination

of many.

72. The Navy’s inability to prevent the previous releases, or the November

2021 Release, from happening, and inability to sufficiently respond to the November

2021 Release to prevent harm to Oʻahu residents—despite all of its efforts to prevent

and detect releases—are weighty considerations.

73. In sum, the situation is beyond the Navy’s ability to adequately mitigate

the threats posed by the continued operation of the Red Hill Facility, with USTs filled

with fuel, at this time.

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74. The threat of future releases poses an imminent peril to human health and

safety or the environment at large.

75. Not only does the year-to-year probability of a significant release make a

future release basically inevitable, the contamination of the Red Hill Shaft and its effect

on Oʻahu residents in just the past month is incontrovertible evidence of the peril.

76. It could be much worse. An unprecedently large UST system 100 feet

containing a massive volume of fuel located directly above a major aquifer is

dangerous.

77. There are pathways for fuel to travel from the Red Hill Facility to the

environment at large.

78. Fuel released from the Red Hill Facility presents a risk to the groundwater

underlying the Red Hill Facility and the sole source aquifer generally.

79. Sampling from under and around the Red Hill Facility has demonstrated

the existence of petroleum contamination in the groundwater.

80. The area beneath the Red Hill Facility does not absorb fuel well enough to

mitigate the peril to human health and safety or the environment at large.

81. The layers of protection intended to prevent releases from entering the

environment are unreliable.

82. Test results indicate that, prior to the November 2021 Release, petroleum

constituents have been detected in Red Hill Shaft as high as 490 µg/L in 2020 and in

Red Hill Shaft as high as 540 µg/L in August 2021 and in Red Hill Monitoring Wells 16

and 19 as high as 380 µg/L in fall 2021.

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83. As long as fuel remains in the Red Hill USTs, both acute and chronic fuel

releases are likely to continue.

84. The presence of fuel in the Red Hill USTs is an ongoing threat to human

health and safety or the environment, given these problems.

85. Both parties have raised other points regarding what the Navy is or is not

doing, sampling, monitoring, modeling, testing, deliverables under the AOC, who is at

fault for delays, and the like. Specific findings on these points are unnecessary in this

emergency proceeding where the weight of the evidence underlying the above findings

are dispositive.

I. The Emergency Order and Response

86. On December 3, 2021, the Commander of the U.S. Pacific Fleet

authorized an investigation into the cause of the May 2021 and November 2021

Releases, or other similar events, to be completed by January 14, 2022.

87. The investigation could be changed or modified at any time by a

sufficiently high-ranking Naval authority, without the DOH or anyone else being able to

prevent it.

88. The January 14, 2022 deadline could be extended.

89. On December 6, 2021, the DOH issued the Emergency Order to the Navy.

The Emergency Order requires the Navy to (1) “[i]mmediately suspend operations

including, but not limited to, fuel transfers at the Bulk Fuel Storage Tanks at the Facility.

Respondent shall, however, maintain environmental controls, release detection and

release response protocols, and compliance with applicable regulations,” (2) “[t]ake

immediate steps to install a drinking water treatment system or systems at Red Hill

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Shaft to ensure distribution of drinking water conforms to the standards prescribed by

the Safe Drinking Water Act and applicable regulations and minimize movement of the

contaminant plume(s). The treatment system(s) shall be reviewed and approved by the

Department prior to installation and shall be installed as expeditiously as practicable,”

(3) “[w]ithin 30 days of receipt of this EO, submit a workplan and implementation

schedule, prepared by a qualified independent third party approved by the Department,

to assess the Facility operations and system integrity to safely defuel the Bulk Fuel

Storage Tank. Upon the Department’s approval of the assessment, workplan and

implementation schedule, conduct necessary repairs and make necessary changes in

operations to address any deficiencies identified in the assessment and workplan.

Corrective actions shall be performed as expeditiously as possible,” (4) “[w]ithin 30 days

of completion of required corrective actions under Item 3, defuel the Bulk Fuel Storage

Tanks at the Facility. Any refueling shall be subject to a determination by the

Department that it is protective of human health and the environment,” and (5) “[w]ithin

30 days of the receipt of the EO submit a workplan and implementation schedule,

prepared by a qualified independent third party approved by the Department, to assess

operations and system integrity of the Facility to determine design and operational

deficiencies that may impact the environment and develop recommendations for

corrective action. Submit the assessment, proposed work and recommendations for

corrective action to the Department with an implementation schedule. Upon the

Department’s approval, perform work and implement corrective actions. Corrective

actions shall be performed as expeditiously as possible.”

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90. By letter dated December 7, 2021, the Navy informed the DOH of its intent

to contest the Emergency Order.

91. Also on December 7, 2021, the Secretary of the Navy issued a

Memorandum for the Chief of Naval Operations, titled “Immediate Actions: Red Hill

Underground Storage Tanks.”

92. The Secretary ordered:

a. The cessation of all operations at the Red Hill USTs until the

investigation into the cause of the incident is complete.

b. The continuing isolation of the Red Hill and Halawa wells which the

Navy operates, until the water distribution main and all affected

homes and buildings have been flushed and can be supplied with

potable water that meets EPS drinking water standards.

c. Evaluate acquisition of a drinking water treatment system or systems

at the Red Hill Shaft.

d. Within 30 calendar days, the Navy will consult with a qualified

independent third party to assess operations and system integrity of

the Red Hill Facility to determine design and operational deficiencies

that may impact the environment and to develop a work plan and

implementation schedule to conduct necessary repairs and make

necessary changes in the operations to address any deficiencies

identified in the assessment. Corrective actions shall be performed

as expeditiously as possible.

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e. Following the independent third-party assessment, the Navy will

approve a final work plan and implementation schedule and will

expeditiously perform work and make necessary changes in

operation.

93. The December 7, 2021 Memorandum was partially modeled upon, and

drafted as an indirect response to, the Emergency Order.

94. The December 7, 2021 Memorandum tacitly recognizes that aspects of

the five directives in the Emergency Order are necessary and appropriate in the

circumstances.

95. The December 7, 2021 Memorandum can be rescinded, in whole or in

part, by the Secretary of the Navy at any time.

96. There is no guarantee that the Navy will begin operating the Red Hill

Facility again only after the perils to human health and safety or the environment

associated with the Red Hill Facility are all remediated.

97. There is no guarantee that the Navy will not act in the perceived best

interest of the Navy, notwithstanding the threats to the health and safety of the people of

Hawaiʻi and to the environment.

98. Under the December 7, 2021 Memorandum, the Navy ultimately decides

what should and will be done.

J. The Five Directives of the Emergency Order

99. Item 1 of the Emergency Order requires the Navy to “[i]mmediately

suspend operations including, but not limited to, fuel transfers at the Bulk Fuel Storage

Tanks at the Facility. Respondent shall, however, maintain environmental controls,

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release detection and release response protocols, and compliance with applicable

regulations.” These actions are necessary and designed to reduce or stop the imminent

peril caused by the November 2021 Release and continuing operations at the Red Hill

Facility as currently configured and operated.

100. Item 2 of the Emergency Order requires the Navy to “[t]ake immediate

steps to install a drinking water treatment system or systems at Red Hill Shaft to ensure

distribution of drinking water conforms to the standards prescribed by the Safe Drinking

Water Act and applicable regulations and minimize movement of the contaminant

plume(s). The treatment system(s) shall be reviewed and approved by the Department

prior to installation and shall be installed as expeditiously as practicable.” These actions

are necessary and designed to reduce or stop the imminent peril caused by the

November 20, 2021 Release and continuing operations at the Red Hill Facility as

currently configured and operated.

101. Item 3 of the Emergency Order requires the Navy to “[w]ithin 30 days of

the receipt of the EO submit a workplan and implementation schedule, prepared by a

qualified independent third party approved by the Department, to assess operations and

system integrity of the Facility to determine design and operational deficiencies that may

impact the environment and develop recommendations for corrective action to the

Department with an implementation schedule. Upon the Department’s approval,

perform work and implement correct actions. Corrective actions shall be performed as

expeditiously as possible.” These actions are necessary and designed to reduce or

stop the imminent peril caused by continuing operations at the Red Hill Facility as

currently configured and operated.

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102. Item 4 of the Emergency Order requires the Navy to “[w]ithin 30 days of

completion of required corrective actions under Item 3, defuel the Bulk Fuel Storage

Tanks at the Facility. Any refueling shall be subject to a determination by the

Department that it is protective of human health and the environment.” These actions

are necessary and designed to reduce or stop the imminent peril caused by continuing

operations at the Red Hill Facility as currently configured and operated.

103. Item 5 of the Emergency Order requires the Navy to, “[w]ithin 30 days of

receipt of this EO submit a workplan and implementation schedule, prepared by a

qualified independent third party approved by the Department, to assess operations and

system integrity of the Facility to determine design and operational deficiencies that may

impact the environment and develop recommendations for corrective action. Submit the

assessment, proposed work and recommendations for corrective action to the

Department with an implementation schedule. Upon the Department’s approval,

perform work and implement corrective actions. Corrective actions shall be performed

as expeditiously as possible.” These actions are necessary and designed to reduce or

stop the imminent peril caused by continuing operations at the Red Hill Facility as

currently configured and operated.

K. Ultimate Factual Conclusions

104. The weight of the evidence establishes that the November 2021 Release

was a humanitarian and environmental disaster. This disaster was caused by a release

of fuel from the Red Hill Facility. Citizens and residents of the State of Hawai‘i drank

and used water out of their taps that was contaminated with fuel, which caused

substantial physical injury to people and their pets and intolerably upended their lives. It

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caused environmental harm to a source of drinking water in the State of Hawai‘i. The

emergency is not over. The disaster caused by the November 2021 Release has not

been resolved. The State of Hawai‘i, DOH, BWS, the individuals affected, and the

public at large have a strong interest in ensuring that the harm caused to people and the

environment is resolved in accordance with the directives of the DOH in the Emergency

Order, which were legally authorized and appropriate. That the November 2021

Release and aftermath constitute an imminent peril to human health and safety or the

environment is a fact established by a preponderance of the evidence.

105. The weight of the evidence establishes that the Red Hill Facility, as

currently situated, is a metaphorical ticking timebomb located 100 feet above the most

important aquifer on Hawaii’s most populous island. The Red Hill Facility has already

damaged human health and the environment and, as currently situated, inevitably

threatens to do so into the future. The Navy lacks the ability to control the substantial

risks associated with the Red Hill Facility, as currently situated.

106. The State of Hawai‘i, DOH, BWS, and the public at large all have a strong

interest in ensuring that the threats posed by the Red Hill Facility do not come to pass.

They have a strong interest in being protected in accordance with the directives of the

DOH in the Emergency Order, which were legally authorized and appropriate. That the

Red Hill Facility, as currently constituted, poses an imminent peril to human health and

safety or the environment is a fact established by a preponderance of the evidence.

II. CONCLUSIONS OF LAW

To the extent that these conclusions of law contain findings of fact, they shall be

considered as such.

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A. The Emergency Order’s Two Related “Perils”

1. The Emergency Order was issued pursuant to HRS § 342L-9, which

invokes the State and DOH’s “emergency powers” to prevent or respond to an

“imminent peril to human health and safety or the environment.”

2. The Emergency Order alleges two separate, but related, “perils.”

3. The first alleged “peril” concerns a specific event: the November 2021

Release, the contamination of the Red Hill Shaft, the harm caused to Hawai‘i residents,

and the response thereto.

4. The second alleged “peril” is the Red Hill Facility itself, based upon the

history of releases, the lack of “necessary environmental protection to rapidly identify

and remediate fuel leaks,” and the assertion that the Navy “has not demonstrated that

immediate and appropriate response actions are available, and therefore cannot ensure

that immediate and appropriate response actions will be available should another

release occur[] in the future.”

B. Interpretation of HRS § 342L-9

5. This resolution of this proceeding requires the application of the facts to

HRS § 342L-9. This, in turn, requires a legal interpretation of that statute.

6. When interpreting statutes, Hawaiʻi law requires us to consider five well-

established principles:

First, the fundamental starting point for statutory interpretation is the


language of the statute itself. Second, where the statutory language is
plain and unambiguous, our sole duty is to give effect to its plain and
obvious meaning. Third, implicit in the task of statutory construction is our
foremost obligation to ascertain and give effect to the intention of the
legislature, which is to be obtained primarily from the language contained
in the statute itself. Fourth, when there is doubt, doubleness of meaning,
or indistinctiveness or uncertainty of an expression used in a statute, an

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ambiguity exists. And fifth, in construing an ambiguous statute, the


meaning of the ambiguous words may be sought by examining the
context, with which the ambiguous words, phrases, and sentences may be
compared, in order to ascertain their true meaning.

Haw. Gov’t Emps. Ass’n, AFSCME Local 152, AFL-CIO v. Lingle, 124 Hawaiʻi 197, 202,

239 P.3d 1, 6 (2010).

7. HRS § 342L-9(a) states:

(a) Notwithstanding any other law to the contrary, if the governor or the
director determines that an imminent peril to human health and safety or
the environment is or will be caused by:

(1) A release;

(2) Any action taken in response to a release from an underground


storage tank or tank system; or

(3) The installation or operation of an underground storage tank or


tank system;

that requires immediate action, the governor or the director, without a


public hearing, may order any person causing or contributing to the peril to
immediately reduce or stop the release or activity, and may take any and
all other actions as may be necessary. The order shall fix a place and
time, not later than twenty-four hours thereafter, for a hearing to be held
by the director.

1. Defined Terms

8. The “director” is the director of health. HRS § 342L-1. Kathleen S. Ho,

who executed the Emergency Order, is the Deputy Director for Environmental Health

and by definition acts as the deputy for the director of health.

9. “Underground storage tank” means in pertinent part “any one or

combination of tanks (including pipes connected thereto) used to contain an

accumulation of regulated substances, and the volume of which (including the volume of

the underground pipes connected thereto) is ten per cent or more beneath the surface

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of the ground. HRS § 342L-1. Each of the twenty Red Hill Bulk Fuel Storage Tanks is

an “underground storage tank.”

10. “Underground storage tank system” means “an underground storage tank,

connected underground piping, underground ancillary equipment, and containment

system, if any.” HRS § 342L-1. The Red Hill Facility constitutes an underground

storage tank system.

11. A “release” “includes, but is not limited to, any spilling, leaking, emitting,

discharging, escaping, leaching, or disposing from an underground storage tank or tank

system.” HRS § 342L-1.

12. The Red Hill Facility has a long history of “releases.” Among them, the

January 2014 Release, the May 2021 Release, the Kilo Pier Release, and the

November 2021 Release constitute “releases.”

13. “Person” includes “the United States government, federal agency, . . . or

any other legal entity.” The Navy is a “person” for purposes of HRS § 342L-9.

2. Interpretation of “Imminent Peril”

14. “Imminent peril” is undefined by statute. No Hawaiʻi case has interpreted

the meaning of this phrase within the context of the statute.

15. The plain meaning of the word “peril” is straightforward. It implies risk, not

inevitability—the “exposure to injury, loss, or destruction; grave risk; jeopardy; danger.”

See https://www.dictionary.com/browse/peril.

16. “Imminent,” implies a degree of closeness in time—“likely to occur at any

moment.” See https://www.dictionary.com/browse/imminent.

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17. Under HRS § 342L-9, a release does not need to be imminent. It is the

peril—the risk—that must be imminent.

18. A release that has already occurred that has damaged human health or

the environment and that is not resolved to DOH’s satisfaction constitutes “an imminent

peril to human health and safety or the environment.” Here, the environment has

already been damaged by the November 2021 Release and remains damaged.

19. With respect to USTs, frequently—as evidenced by the Red Hill Facility’s

substantial history of releases—the DOH is forced to react to an event that has already

occurred. The purpose of HRS § 342L-9, on the other hand, is plainly to provide the

DOH with the ability to prevent harm to human health and safety or the environment

caused by USTs before the harm occurs based upon an assessment of risk. This

assessment of risk does not require the finding of a hole in a tank or that a hole is

moments away from developing. It necessarily involves consideration of matters the

likes of which were presented at the evidentiary hearing: a history of releases, scientific

analysis, expert opinions, consideration of probabilities of future releases, the probability

that future releases would cause harm to human health and safety or the environment,

and the continuation of releases even with protocols in place where prior attempts to

take less drastic measures have failed. The analysis will almost inevitably require

prediction and forecasting to have any ability to prevent actual harm to the environment

before a release occurs.

20. This interpretation is consistent with the fact that the “imminent peril” need

not arise from a release, but may also arise from the “operation of an underground

storage tank or tank system[.]” HRS § 342L-9(a)(3). In other words, the DOH does not

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need to show that a release is right upon us before invoking emergency powers.

Instead, it is the peril—not that harm—that must be imminent.

21. This interpretation is consistent with the Legislature’s interpretation of

HRS § 342L-9. The Legislature has stated that this provision is intended to address,

among other things, any improper management of solid and hazardous waste because

the impact on our ground and surface water poses a serious threat to public health and

safety.” 1995 Hawaiʻi Senate Journal, Standing Committee Report No. 1193, at 1276

(emphasis added). As the Legislature has read the statute, “improper management” is

sufficient to trigger HRS § 342L-9 as an “imminent peril to human health and safety or

the environment.”

22. This interpretation is consistent with underlying principles of Hawaiʻi

environmental law, with which HRS § 342L-9 is fully in accord, and the Legislature

acted in accordance with these principles. See, e.g., Haw. Const. art. XI, §§ 1, 7, 9; In

re Waiāhole Ditch Combined Contested Case Hr’g, 94 Hawai‘i 97, 9 P.3d 409 (2000).

23. The Navy argues for an interpretation of “imminent peril” that would

require that the threatened harm become actual harm in a very short period of time, like

a hurricane about to make landfall tomorrow. This interpretation is inconsistent with the

purpose of HRS § 342L-9 and the legislative intent because the purpose of HRS

§ 342L-9 is to address perils in a proactive fashion—rationally, not instinctively—to

safeguard “human health and safety or the environment.”

///

///

///

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C. The DOH Was Authorized to Issue the Emergency Order to the Navy

1. The Navy Does Not Possess Sovereign Immunity

24. Federal law requires all federal agencies, including the Navy, to comply

with all Hawai‘i “requirements, both substantive and procedural …, respecting

underground storage tanks in the same manner, and to the same extent, as any person

is subject to such requirements,” including, “but … not limited to, all administrative

orders and all civil and administrative penalties and fines, regardless of whether such

penalties or fines are punitive or coercive in nature or are imposed for isolated,

intermittent, or continuing violations.” 42 U.S.C. § 6991f(a).

25. The United States’s express waiver of sovereign immunity subjects the

Navy to the same substantive and procedural requirements as any person under state

laws regulating USTs. See id. (“The United States hereby expressly waives any

immunity otherwise applicable to the United States with respect to any such substantive

or procedural requirement (including, but not limited to, any injunctive relief,

administrative order or civil or administrative penalty or fine referred to in the preceding

sentence, or reasonable service charge).”).

26. The Navy and the Red Hill Facility are subject to federal law, as well as

Hawai‘i law, statutes, and regulations.

2. The AOC Does Not Apply to the Emergency Order

27. The AOC does not preclude the DOH from exercising its “emergency

powers” under H.R.S. § 342L-9.

28. Paragraph 18 (“Reservation of Rights”) of the AOC states, in pertinent

part:

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Notwithstanding any other provisions of this AOC, the Regulatory


Agencies retain their authority to take, direct, or order any and all actions
necessary to protect public health, any source of drinking water or the
environment or to prevent, abate, or minimize an actual or threatened
release of hazardous substances, pollutants, or contaminants, or
hazardous or solid waste or constituents of such wastes, on, at, or from
the Facility, including but not limited to the right to bring enforcement
actions under . . . HRS chapters 340E, 342D and 342L; and any other
applicable statutes or regulations. However, unless required on an
emergency basis, no such action shall be taken in relation to any activity
within the scope of this AOC unless a Party has first made good faith
efforts to address the issue through a modification of this AOC and, if
necessary, through the Dispute Resolution process set forth in Section 14.

Ex. D05, § 18(a) (emphasis added).

29. The right to take action on an emergency basis under HRS § 342L-9 is

expressly reserved from the scope of the AOC, without qualification.

30. The entire purpose of HRS § 342L-9 is to address emergencies—

imminent perils to human health and safety or the environment.

31. Emergencies are what the Emergency Order seeks to address, and

emergencies are what this Decision and Order addresses.

D. The November 2021 Release and the Response Thereto Constitutes


an “Imminent Peril to Human Health and Safety or the Environment”

32. The November 2021 Release caused an imminent peril to human health

and safety or the environment that still exists and is ongoing. An emergency does exist.

33. The five directives in the Emergency Order are appropriate, authorized,

and necessary to mitigate the peril.

34. The Navy’s investigation, the December 8, 2021 Memorandum, and any

subsequent remedial measures do not change the analysis. It is the DOH’s job to

ensure that the November 2021 Release is properly remediated and that the Red Hill

USTs are only allowed to operate again once safe. That was the entire point of the

30
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 33 of 34 PageID #: 76

Emergency Order. The fact that the Navy is voluntarily doing some—but not all—of

what the Emergency Order requires, except almost entirely upon the Navy’s own terms,

does not make the Emergency Order unnecessary.

E. The Red Hill Facility, as Currently Constituted, Poses an “Imminent


Peril to Human Health and Safety or the Environment”

35. The Red Hill Facility, as currently configured and operated, constitutes an

imminent peril to human health and safety or the environment. An emergency does

exist.

36. The five directives in the Emergency Order are appropriate, authorized,

and necessary to mitigate the peril.

F. The Functional Utility of the Red Hill Facility to the Navy is


Unimportant for Purposes of This Proceeding

37. The importance of the Red Hill Facility as fuel storage for the U.S. military

has been considered, but it carries no substantial weight in this proceeding.

38. Nothing in HRS § 342L-9 provides or suggests that the decision-maker in

the administrative hearing provided should balance the utility of the USTs with the

imminent perils to human health or the environment caused by those same USTs.

Instead, HRS § 342-9 focuses entirely on protecting people and the environment from

harm. In other words, when there is an emergency situation, the Legislature has made

the policy decision to protect human lives and the environment over any functional utility

of USTs.

///

///

///

31
Case 1:22-cv-00051 Document 1-3 Filed 02/02/22 Page 34 of 34 PageID #: 77
Case 1:22-cv-00051 Document 1-4 Filed 02/02/22 Page 1 of 5 PageID #: 78
JS 44 (Rev. 12/12) CIVIL COVER SHEET
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)

I. (a) PLAINTIFFS DEFENDANTS


UNITED STATES OF AMERICA DEPARTMENT OF HEALTH, STATE OF HAWAII, ET AL. (see
attachment for all defendants and defendant-intervenors)

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant Honolulu
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)
(see attachment) (see attachment)

II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
’ 1 U.S. Government ’ 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State ’ 1 ’ 1 Incorporated or Principal Place ’ 4 ’ 4
of Business In This State

’ 2 U.S. Government ’ 4 Diversity Citizen of Another State ’ 2 ’ 2 Incorporated and Principal Place ’ 5 ’ 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State

Citizen or Subject of a ’ 3 ’ 3 Foreign Nation ’ 6 ’ 6


Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
’ 110 Insurance PERSONAL INJURY PERSONAL INJURY ’ 625 Drug Related Seizure ’ 422 Appeal 28 USC 158 ’ 375 False Claims Act
’ 120 Marine ’ 310 Airplane ’ 365 Personal Injury - of Property 21 USC 881 ’ 423 Withdrawal ’ 400 State Reapportionment
’ 130 Miller Act ’ 315 Airplane Product Product Liability ’ 690 Other 28 USC 157 ’ 410 Antitrust
’ 140 Negotiable Instrument Liability ’ 367 Health Care/ ’ 430 Banks and Banking
’ 150 Recovery of Overpayment ’ 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS ’ 450 Commerce
& Enforcement of Judgment Slander Personal Injury ’ 820 Copyrights ’ 460 Deportation
’ 151 Medicare Act ’ 330 Federal Employers’ Product Liability ’ 830 Patent ’ 470 Racketeer Influenced and
’ 152 Recovery of Defaulted Liability ’ 368 Asbestos Personal ’ 840 Trademark Corrupt Organizations
Student Loans ’ 340 Marine Injury Product ’ 480 Consumer Credit
(Excludes Veterans) ’ 345 Marine Product Liability LABOR SOCIAL SECURITY ’ 490 Cable/Sat TV
’ 153 Recovery of Overpayment Liability PERSONAL PROPERTY ’ 710 Fair Labor Standards ’ 861 HIA (1395ff) ’ 850 Securities/Commodities/
of Veteran’s Benefits ’ 350 Motor Vehicle ’ 370 Other Fraud Act ’ 862 Black Lung (923) Exchange
’ 160 Stockholders’ Suits ’ 355 Motor Vehicle ’ 371 Truth in Lending ’ 720 Labor/Management ’ 863 DIWC/DIWW (405(g)) ’ 890 Other Statutory Actions
’ 190 Other Contract Product Liability ’ 380 Other Personal Relations ’ 864 SSID Title XVI ’ 891 Agricultural Acts
’ 195 Contract Product Liability ’ 360 Other Personal Property Damage ’ 740 Railway Labor Act ’ 865 RSI (405(g)) ’ 893 Environmental Matters
’ 196 Franchise Injury ’ 385 Property Damage ’ 751 Family and Medical ’ 895 Freedom of Information
’ 362 Personal Injury - Product Liability Leave Act Act
Medical Malpractice ’ 790 Other Labor Litigation ’ 896 Arbitration
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS ’ 791 Employee Retirement FEDERAL TAX SUITS ’ 899 Administrative Procedure
’ 210 Land Condemnation ’ 440 Other Civil Rights Habeas Corpus: Income Security Act ’ 870 Taxes (U.S. Plaintiff Act/Review or Appeal of
’ 220 Foreclosure ’ 441 Voting ’ 463 Alien Detainee or Defendant) Agency Decision
’ 230 Rent Lease & Ejectment ’ 442 Employment ’ 510 Motions to Vacate ’ 871 IRS—Third Party ’ 950 Constitutionality of
’ 240 Torts to Land ’ 443 Housing/ Sentence 26 USC 7609 State Statutes
’ 245 Tort Product Liability Accommodations ’ 530 General
’ 290 All Other Real Property ’ 445 Amer. w/Disabilities - ’ 535 Death Penalty IMMIGRATION
Employment Other: ’ 462 Naturalization Application
’ 446 Amer. w/Disabilities - ’ 540 Mandamus & Other ’ 465 Other Immigration
Other ’ 550 Civil Rights Actions
’ 448 Education ’ 555 Prison Condition
’ 560 Civil Detainee -
Conditions of
Confinement
V. ORIGIN (Place an “X” in One Box Only)
’ 1 Original ’ 2 Removed from ’ 3 Remanded from ’ 4 Reinstated or ’ 5 Transferred from ’ 6 Multidistrict
Proceeding State Court Appellate Court Reopened Another District Litigation
(specify)
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
Hawaii Revised Statutes §§ 91-14, 342L-13; 28 U.S.C. §§ 2201, 2202; 28 U.S.C. § 1345
VI. CAUSE OF ACTION Brief description of cause:
Judicial review of contested case hearings; appeal from DOH order; declaratory relief; United States as plaintiff
VII. REQUESTED IN ’ CHECK IF THIS IS A CLASS ACTION DEMAND $ CHECK YES only if demanded in complaint:
COMPLAINT: UNDER RULE 23, F.R.Cv.P. JURY DEMAND: ’ Yes ’ No
VIII. RELATED CASE(S)
(See instructions):
IF ANY JUDGE DOCKET NUMBER
DATE SIGNATURE OF ATTORNEY OF RECORD
02/02/2022 /s/ Lucy E. Brown
FOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE

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Case 1:22-cv-00051 Document 1-4 Filed 02/02/22 Page 2 of 5
JS 44 Reverse (Rev. 12/12) PageID #: 79

INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44


Authority For Civil Cover Sheet

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as
required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is
required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of
Court for each civil complaint filed. The attorney filing a case should complete the form as follows:

I.(a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use
only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and
then the official, giving both name and title.
(b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the
time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land
condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.)
(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting
in this section "(see attachment)".

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X"
in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.
United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here.
United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box.
Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment
to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes
precedence, and box 1 or 2 should be marked.
Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the
citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity
cases.)

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this
section for each principal party.

IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is
sufficient to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than
one nature of suit, select the most definitive.

V. Origin. Place an "X" in one of the six boxes.


Original Proceedings. (1) Cases which originate in the United States district courts.
Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441.
When the petition for removal is granted, check this box.
Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing
date.
Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.
Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or
multidistrict litigation transfers.
Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407.
When this box is checked, do not check (5) above.

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional
statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service

VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P.
Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction.
Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.

VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket
numbers and the corresponding judge names for such cases.

Date and Attorney Signature. Date and sign the civil cover sheet.
Case 1:22-cv-00051 Document 1-4 Filed 02/02/22 Page 3 of 5 PageID #: 80

CIVIL COVER SHEET ATTACHMENT


I.(a). DEFENDANTS
DEPARTMENT OF HEALTH, STATE OF HAWAII;
ELIZABETH A. CHAR, in her official capacity as Department of Health Director;
MARIAN E. TSUJI, in her official capacity as Department of Health Deputy
Director

I.(a). DEFENDANT-INTERVENORS
SIERRA CLUB;
BOARD OF WATER SUPPLY, CITY AND COUNTY OF HONOLULU

I.(c). ATTORNEYS FOR PLAINTIFF


Todd Kim, Assistant Attorney General
U.S. Department of Justice,
Environment and Natural Resources Division
Lucy E. Brown, Attorney
Leslie M. Hill, Attorney
David D. Mitchell, Attorney
U.S. Department of Justice,
Environment & Natural Resources Division,
Environmental Defense Section
P.O. Box 7611
Washington, D.C. 20044-7611
Telephone: (202) 598-1868 (Brown)
Email: lucy.e.brown@usdoj.gov; leslie.hill@usdoj.gov; david.mitchell@usdoj.gov

1
Case 1:22-cv-00051 Document 1-4 Filed 02/02/22 Page 4 of 5 PageID #: 81

Elliot Enoki, Executive Assistant U.S. Attorney


District of Hawaii
Attorney for the United States,
Acting under Authority Conferred by 28 U.S.C. § 515
Dana A. Barbata, Assistant U.S. Attorney
PJKK Federal Bldg., Room 6-100
300 Ala Moana Boulevard
Honolulu, HI 96850
Telephone: (808) 541-2850
Email: dbarbata@usa.doj.gov

I.(c). ATTORNEYS FOR DEFENDANTS


Holly M. Shikada, Attorney General of Hawai‘i
Diane K. Taira, Attorney
Wade H. Hargrove III, Attorney
Department of the Attorney General,
State of Hawaii
465 South King Street, Room 200
Honolulu, HI 96813
Telephone: (808) 587-3050
Email: wade.h.hargrove@hawaii.gov

I.(c). ATTORNEYS FOR DEFENDANT-INTERVENOR SIERRA CLUB


David L. Henkin, Attorney
Isaac H. Moriwake, Attorney
Kylie W. Wager Cruz, Attorney
Earthjustice

2
Case 1:22-cv-00051 Document 1-4 Filed 02/02/22 Page 5 of 5 PageID #: 82

850 Richards Street, Suite 400


Honolulu, HI 96813
Telephone: (808) 599-2436
Email: dhenkin@earthjustice.org; imoriwake@earthjustice.org;
kwager@earthjustice.org

I.(c). ATTORNEYS FOR DEFENDANT-INTERVENOR BOARD OF


WATER SUPPLY, CITY AND COUNTY OF HONOLULU
Dana M.O. Viola, Corporation Counsel
Jeff A. Lau, Deputy Corporation Counsel
City and County of Honolulu
530 South King Street, Room 110
Honolulu, HI 96813
Telephone: (808) 768-5148
Email: jlau3@honolulu.gov

Ella Foley Gannon, Attorney (associated as counsel)


David K. Brown, Attorney (associated as counsel)
Morgan, Lewis & Bockius LLP
One Market, Spear Street Tower
San Francisco, CA 94105
Telephone: (415) 442-1000
Email: ella.gannon@morganlewis.com; david.brown@morganlewis.com

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