The U.S. Environmental Protection Agency has accepted a settlement with Bali Hai Villas Ltd. for failing to comply with the Clean Water Act.

The EPA says the settlement includes $63,000 in penalties.

According to the agency, the company failed to adequately implement stormwater pollution controls at its condominium construction project in Princeville, Kaua'i.

In September 2007, EPA inspectors found the company had failed to install adequate control measures to prevent soil and sediment-filled stormwater from running off the site.

Alexis Strauss is water division director for the EPA's Pacific Southwest region. She says erosion and sedimentation cause severe pollution problems for coastal waters, coral reefs and marine ecosystems.