Rum Fungus Takes Center Stage At Senate Hearing, DPNR To Pursue ‘Nuisance’ Action

ST. CROIX — The Senate Committee on Health, Hospital and Human Services, chaired by Sen. Kurt Vialet, met at the Fritz Lawetz Conference Room on Wednesday to hear testimony and discuss the rum fungus issue affecting the west end of the island.

Residents were given a chance to voice their concerns for the first time as their homes, plants and fruits continue to be blackened by mold birthed from ethanol in the rum produced by Cruzan Rum and Diageo USVI.

The “rum fungus” or “fungus Baudoinia compniacensis” is a black mold that feeds on ethanol vapor released by liquor as it ages. The mold is most prominently seen on directional and speed limit signs on St. Croix’s highways from mid-island to Frederiksted, on the roofs of homes and even windows.

Testifiers expressed concern over the potential health hazard that the fungus pose, although scientific research, according to DPNR and other testifiers, has shown no such evidence.

H. Andrea Daley, President of the Enfield Green homeowners association and a homeowner herself, said she began noticing the growth of black fungus on her home, car, trees and fruits, as well as on the property of other homeowners following the increase in rum production on the island.

“I’ve spoken with many of the residents in Enfield Green who also notice and experience the same growth on their properties,” Daley said. “We have been very concerned that the fungus may have an adverse effect on our health. We do not know how this fungus will affect us through touching it or inhaling it.”

Daley’s testimony summed up the concerns of other testifiers mainly frustrated with the blackening of their properties and the potential health risks.

Representing Cruzan Rum and Diageo at the hearing was Attorney Joel Holt, who sought to highlight the economic benefits that the two companies have brought to the territory.

Holt said the rum industry is the largest remaining industry on St. Croix, with Diageo and Cruzam rum collectively accounting for over 125 jobs. He said the companies continue to make “significant” financial contributions to the territory.

In relaying the rum producers’ side of the story, Holt said on July 8, 2013, the Department of Planning and Natural Resources (DPNR) sent letters to Diageo and Cruzan Rum regarding citizens’ concerns of mold growth caused by rum aging. He said DPNR had conducted preliminary sampling of the mold, along with the United States Environmental Protection Agency (EPA).

Upon receipt of the letters, Holt said he contacted DPNR and requested results of the samples, which he received on Sept. 7, 2014. Thereafter, he met DPNR on Sept. 17, 2014 and was told that further sampling was needed because the results were only preliminary.

In the Summer of 2013, the Virgin Islands Department of Health (DOH) conducted its own investigation into the health effects of mold growth caused by rum aging. Holts said he met with an inspector of DOH on July 10, 2013, and was told by the inspector that no adverse health effects were found.

However, Holt did not acknowledge that the DPNR letter asked the rum producers to implement measures to reduce the release of ethanol into the environment in lieu of enforcement action. DPNR also asked the companies to incur half the cost of sampling of all impacted homes and businesses — none of which was carried out by Diageo or Cruzan Rum.

Holt also refused to answer questions under oath, citing an ongoing litigation involving a class action lawsuit that includes 380 residents against the two companies he represents. The class action case is headed by William F McMurrry and Associates, none of whom was able to attend today’s hearing and was represented by local Attorney Vincent Colianni.

DPNR Commissioner nominee Attorney Dawn L. Henry, testifying on behalf of the department she now heads, told senators that the only testing they are aware of is what was conducted by DPNR in conjunction with the EPA. Henry said DPNR will be pursuing enforcement action against Diageo and Cruzan under a nuisance claim, which Henry explained deals only with determining the affected areas and the cleanup thereof.

Currently, DPNR has no mechanism in place that can detect how much ethanol is being released into the environment; and the department currently has no plans to purchase equipment to aid in that regard. Henry, however, said she would look into the possibility of purchasing such equipment after Sen. Vialet made the request.

Vialet, who is currently working on legislation that intends to lower the amount of ethanol released into the environment by the rum producers — which would in turn help quell the mold issue — said DPNR “dropped the ball” when dealing with the companies, because after the letters were submitted on July 8, 2013, there was seemingly no followup to make sure the companies complied.

“The reason why a lot of things occur in the Virgin Islands [is] because there’s no followup by government entities that have the power to regulate these industries,” Vialet said, adding that from two years ago, “we could have had Diageo and Cruzam Rum cleaning those properties and installing some type of fix.”

In closing, Vialet said the 31st Legislature will make sure that the necessary laws are enacted that would give DPNR the authority to do what it takes to rectify the issue.