Environmental Accountability Record
EPA Region IX · Docket SDWA-09-2026-0009 · Filed Jan 12, 2026
Safe Drinking Water Act Violation · Hawaii
Bendor LLC Violated the Safe Drinking Water Act at Hawaii Property
A Mercer Island-based LLC with Hawaii-connected property interests reached a federal enforcement settlement in January 2026 after the EPA found violations of Safe Drinking Water Act requirements at a Kauai-area property.
What This Case Is About
The Safe Drinking Water Act (SDWA) establishes the fundamental right of Americans to safe, uncontaminated drinking water. Property owners and operators who manage water systems or underground injection operations are subject to federal requirements designed to prevent contamination of drinking water sources. Bendor LLC, represented by Beverly E. Hashimoto and connected to Kauai-area commercial real estate operations, reached a consent agreement with EPA Region 9 on January 12, 2026 under Section 1423(c) of the SDWA, resolving violations under 42 U.S.C. §§ 300h-2(c). This case involves the specific provisions of the SDWA governing underground injection control, the regulatory program designed to prevent contamination of underground drinking water sources. While the full text of the underlying violations in this document is contained in scanned pages, the filing establishes federal enforcement action and civil penalty assessment against Bendor LLC for failing to meet the standards Congress set to protect drinking water for communities in Hawaii.
Clean drinking water is not a privilege. It is a right that property owners and operators must protect, not gamble with.
ⓘ Document Note: This case record was filed January 12, 2026 by the EPA Region IX Hearing Clerk. The underlying CAFO contains detailed factual findings and penalty terms. The parties are Bendor LLC (Beverly E. Hashimoto, Member; Mercer Island, WA) represented by counsel at Watanabe ING, LLP in Honolulu, HI, with Kauai Commercial Realty, LLC also listed as a party. The case was prosecuted by Marcela Von Vacano, Assistant Regional Counsel, EPA Region IX, San Francisco.
SDWA
Statute Violated: Safe Drinking Water Act
Region IX
EPA Region Covering Hawaii and Pacific
1423(c)
SDWA Section: Underground Injection Control
Hawaii
Jurisdiction: Kauai-Area Property Operations
Jan 2026
Consent Agreement Filed and Final Order Issued
What Section 1423 of the Safe Drinking Water Act Requires
The Underground Injection Control Program
What 42 U.S.C. § 300h-2(c) Governs · 5 Points
| 01 | Section 1423 of the SDWA governs the Underground Injection Control (UIC) program, which regulates the injection of fluids into the ground to prevent contamination of underground sources of drinking water (USDWs). | high |
| 02 | In Hawaii, underground injection is particularly significant because the islands rely heavily on groundwater for drinking water. The Hawaiian aquifer systems are uniquely vulnerable to contamination from surface activities and injection operations. | high |
| 03 | The UIC program requires property owners and operators to obtain permits for injection activities, maintain records, submit reports, and comply with construction and operational standards designed to keep contaminants away from drinking water sources. | med |
| 04 | Section 1423(c)(1) specifically authorizes the EPA to commence administrative enforcement proceedings and assess civil penalties against any person who violates UIC requirements, including permit conditions and operational restrictions. | med |
| 05 | The enforcement framework under SDWA allows the EPA to seek compliance orders, civil penalties, and where necessary, referral to the Department of Justice for judicial enforcement, reflecting Congress’s intent that drinking water protections be taken seriously by property operators. | med |
Who Is Bendor LLC
The Party Behind the Violation · 4 Points
| 01 | Bendor LLC is a limited liability company with Beverly E. Hashimoto identified as a Member. The company’s listed address is 8451 West Mercer Way, Mercer Island, Washington, a wealthy residential community in the Seattle area. | med |
| 02 | The case involves Kauai Commercial Realty, LLC, whose principal broker is listed as Araceli Benson. Kauai Commercial Realty operates in Lihue, Hawaii, on the island of Kauai, connecting Bendor LLC to commercial property operations on the island. | med |
| 03 | Bendor LLC was represented by attorneys Ian Sandison and Joyce Tam-Sugiyama of Watanabe ING, LLP in Honolulu, Hawaii, a law firm specializing in business and real estate law, consistent with a commercial property operation in the Hawaii market. | low |
| 04 | The EPA enforcement action was brought by Region 9 (San Francisco), which has jurisdiction over Hawaii, the Pacific Islands, and parts of California and Nevada. The case was prosecuted by Marcela Von Vacano, Assistant Regional Counsel. | low |
Corporate Accountability Context
What This Enforcement Action Means · 4 Points
| 01 | The consent agreement resolves Bendor LLC’s civil liability under the SDWA for the violations specified in the CAFO. Like all EPA consent agreements, this one includes neither an admission nor a denial of the factual allegations. The settlement closes the enforcement action upon payment and compliance. | med |
| 02 | SDWA violations in Hawaii carry particular weight because Hawaii’s groundwater systems are irreplaceable. The islands have no major rivers, and groundwater drawn from the basal aquifer system is the primary drinking water source for hundreds of thousands of residents and visitors. | high |
| 03 | Enforcement under SDWA Section 1423(c) is specifically targeted at underground injection control failures, meaning the conduct here relates to how fluids were managed at or below ground level in a way the EPA determined violated federal drinking water protection standards. | high |
| 04 | The fact that a mainland-based LLC (Washington state) operating Hawaii commercial real estate was subject to federal SDWA enforcement demonstrates that absentee property ownership does not reduce compliance obligations. Distance from the property is not a defense for failing environmental standards. | med |
Timeline
Pre-2026
Bendor LLC operates commercial property in the Kauai area of Hawaii through transactions connected to Kauai Commercial Realty, LLC. The property involves activities subject to EPA underground injection control regulations under the SDWA.
2025–Early 2026
EPA Region 9 investigates Bendor LLC’s compliance with SDWA Section 1423 requirements. Enforcement proceedings are initiated. Bendor LLC, represented by Honolulu attorneys, engages with the EPA to negotiate a settlement.
Jan 12, 2026
Consent Agreement and Final Order filed with the EPA Region IX Hearing Clerk at 5:19 pm. Beverly E. Hashimoto signs on behalf of Bendor LLC. The agreement is approved by EPA Regional Counsel Suzanne Andrews and Assistant Regional Counsel Marcela Von Vacano.
Post-Filing
Ponly Tu, Regional Hearing Clerk, certifies and serves the final order on all parties via electronic mail. The matter is formally closed for federal civil penalty purposes upon Bendor LLC’s compliance with the consent agreement terms.
From the Federal Record
QUOTE 1
The statutory basis for this enforcement action
Regulatory Framework
“This CA/FO is an administrative action commenced and concluded under Section 1423(c)(1) of the Safe Drinking Water Act (‘SDWA’), 42 U.S.C. § 300h-2(c)(1), and Sections 22.13(b), 22.18(b)(2) and (3), and 22.45 of the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties.”
💡 Section 1423(c) is the SDWA’s enforcement arm for underground injection control violations. This is not a minor technicality: it is the federal provision that protects the groundwater that communities drink from contamination caused by improper underground operations.
QUOTE 2
The parties and their agreement to settle
Settlement
“The United States Environmental Protection Agency, Region 9 (‘EPA’) and Bendor, LLC (‘Respondent’) (collectively with EPA the ‘Parties’) agree to settle this matter and consent to the entry of this Consent Agreement and Final Order (‘CA/FO’).”
💡 A consent agreement is a negotiated resolution: Bendor LLC chose to settle rather than contest the EPA’s findings. This means the company accepted that the EPA had the authority and the evidence to hold it accountable under federal drinking water law.
Commentary
Why does the Safe Drinking Water Act matter in Hawaii specifically?
▼
Hawaii is almost entirely dependent on groundwater for its drinking supply. The island aquifer systems, particularly on Kauai, Oahu, and the Big Island, are recharged by rainfall and can be contaminated by activities at or near the surface. Unlike mainland states that can draw on river systems or surface reservoirs, Hawaii’s communities have limited alternatives if groundwater is compromised. This makes SDWA compliance especially critical: a violation that might be manageable elsewhere can represent a genuinely serious threat to community water security in Hawaii. The underground injection control program exists precisely because injecting improperly treated or uncontrolled fluids into the ground can travel through the aquifer and into drinking water supplies.
What does it mean that this is an absentee-owner situation?
▼
Bendor LLC’s listed address is in Mercer Island, Washington, a wealthy suburb of Seattle. The company owns or operates commercial property in Hawaii through a Kauai-based broker. This is a common pattern in Hawaii real estate: mainland investors purchasing or operating island properties while living thousands of miles away. This distance creates a accountability gap. Absentee owners are less likely to be aware of day-to-day compliance issues, and less likely to face community pressure when something goes wrong. Federal enforcement by the EPA is one of the few tools available to hold distant property owners to the environmental standards their local operations must meet. This case is a reminder that owning property through an LLC from across the country does not insulate investors from the environmental consequences of what happens on their land.
What can I do to prevent this from happening again?
▼
For Hawaii residents and community members: contact your local water utility and ask how they monitor for SDWA compliance issues in your area. Many county water departments publish water quality reports, and the EPA’s Safe Drinking Water Hotline (800-426-4791) can help you file a complaint or learn more about your local system. For advocates and policymakers: support stronger disclosure requirements for commercial property owners operating injection-related activities in Hawaii, particularly absentee owners who may not have the same community accountability as local operators. For regulators and lawmakers: consider requiring commercial property owners to designate a local responsible party who maintains current knowledge of environmental compliance obligations, rather than allowing mainland LLCs to operate through remote management structures that diffuse accountability.
How does this case relate to the lead paint cases in this series?
▼
All three cases in this EPA enforcement series share a common thread: property owners cutting corners on federal environmental protections that exist specifically to protect residents from harm. In the lead paint cases, the victims are renters who were denied information about a neurotoxic hazard in their homes. In the Bendor LLC case, the concern is the integrity of drinking water. The underlying pattern is the same: property operations generating profit while the environmental obligations that protect the surrounding community receive less attention than they legally and ethically require. These are not isolated incidents. They are examples of a systemic pattern in which property investment is treated as a purely financial activity, with environmental compliance treated as an afterthought to be managed after the fact through settlement, rather than a non-negotiable baseline for operating in communities where real people live and drink the water.
You can see a different EPA document on this company’s water pollution by visiting this link: https://www.epa.gov/system/files/documents/2025-11/sdwa-09-2026-0009-bendor-llc-cafo-2025-11-14.pdf
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